WHEREAS, the sole owners and developers of that certain tract of land known and described as Saddle Notch Log Home Community, Madison County, New York, desire to establish certain building and occupancy standards on said property for the protection and benefit of any present or future owner of any property for the protection of said property.

THEREFOR, in consideration of the premises and the benefits to persons now owning said property and to persons who may acquire an interest in the same, the following conditions and restrictions of right are hereby placed on said property as fully and completely as if included in words and figures on the plat of said land at the time of recording said lots in the land records of Madison County, New York.

1.) TERM. These covenants are to run with the land and shall be binding on all parties and all persons claiming under them until 31st day of March, 2011, at which time said covenants shall be automatically extended for successive periods of ten (10) years unless by a vote of then owners of the lots, it is agreed to change said covenants in whole or in part.

2.) POWER OF COVENANTS. If the parties hereto, or any of them or their heirs or assigns, shall violate or attempt to violate any of the covenants herein , it shall be lawful for any other person or persons owning any real property situated in said development or subdivision to prosecute any proceedings at law or in equity against the person or persons violating or attempting to violate any such covenant, and either prevent him from doing so or to recover damages for other dues for such violation. All court costs and attorneys fees incurred in such action shall be charged to the unsuccessful litigant.

4.) TYPE OF LOTS. All lots in the tract shall be known and described as residential lots.

5.) BUILDING. Construction of your log home must be completed within twenty four(24) months from the purchase date of your lot.

6.) MINIMUM HOME SIZE. No dwelling of one story shall be erected on the tract unless it contains 1500 square foot of finished and heated living area, and no dwelling of one-and -one half or two stories shall be erected on the tract unless it contains 1,500 square feet of finished and heated living area (not to include basement). No dwelling of split-level or other multiple-floor construction shall be erected on the tract unless it contains 1,800 or more square feet of perimeter area measured at the finished grade of the house. Single family use only.

7.) EXTERIOR. Color schemes must be approved by the Saddle Notch Architectural Board. Finished colors shall be of natural earth tones and blend with the natural settings. Roof pitch must have an 8/12 pitch or higher.

8.) BUILDING SETBACKS. No building shall be located nearer than fifty (50) feet to front lot line, nearer than forty (40) feet to side lot line and fifty (50) to back lot line. The restrictions in this paragraph number 8 will have to comply with current building restrictions as established by the town of Lenox.

9.) OUT-BUILDING LIMITATIONS. No outbuilding shall be built which is larger than 1,500 square feet. (this requirement may be waived on an individual lot basis by the Saddle Notch Architectural Board). All plans must be submitted to the Saddle Notch Architectural Board for approval before construction may begin.

10.) UTILITY EASEMENTS. All lots in Saddle Notch Log Home Community shall be subject to a Utility Easement, for the installation, maintenance, and repair of underground utilities. This easement shall be twenty (20) feet from the edge of the street.

11.) UTILITY SERVICE C0NNECTIONS. All electrical supply lines, telephone lines, cable television lines, and any other similar cables or lines which are placed on lots in Saddle Notch Log Home Community shall be placed underground from the public source available to the lot, and any expense incident to the installation thereof, which is not paid by the public utility furnishing the service, shall be at the expense of the owner of the lot at the time of obtaining the service.

12.) BUILDING CODES. All construction shall be carried out in compliance with the laws, codes, regulations, zoning (if applicable), and orders of all applicable governmental agencies and authorities. All buildings shall be constructed in accordance with the B .O.C.A .and may be inspected by a qualified inspector before habitation is allowed. A certificate of occupancy must be issued by the proper government agencies.

13.) SADDLE NOTCH ARCHITECTURAL BOARD. All house plans must be a standard or custom Jim Barna/Saddle Notch, Inc. log home. All house plans must be submitted to the Saddle Notch Architectural Board for approval before construction may begin. This board shall have the authority to approve or deny approval of building plans of lot owners, thereby protecting the theme and integrity of the development, and the building's harmony and conformity with other structures in the development. This board shall consist of two or more owner/developers of the Saddle Notch Architectural Board or their agents or assigns. The board will cease to exist once all lots in the development have been sold and built upon. In the event that the board or its designated representative fails to approve or disapprove such design and location within a period of thirty(30) days after said plans and specifications have been submitted to it, or if no litigation to enjoin the erection of such building or the making of such alterations has been commenced prior to the completion thereof, such approval will not be required and this covenant will be deemed to have been fully complied with.

14.) SEPTIC AND WELL SYSTEM. It will be the responsibility of the lot owner to have a correctly engineered sanitary system and water supply system installed. These systems shall be carried out in compliance with the laws, codes, regulations, zoning (if applicable), and orders of all applicable governmental agencies and authorities.

15.) TREE PROTECTIVE COVENANT. The removal of a living, healthy tree or trees will not be allowed, if said tree is eight (8) inches in diameter or larger, when measured at a point four (4) feet above the ground, unless approved in writing by the developer or Saddle Notch Architectural Board, and necessary for the construction of a residence, outbuilding or other approved structure, or is endangering such structure. Tree maintenance by the lot owner is encouraged, such as the trimming and removal of dead and hazardous limbs.

16.) LOT MAINTENANCE. Each lot owner shall be responsible for maintaining the appearance of their lot, weather or not any improvements have been built on it. This includes, but is not limited to: picking up litter, keeping the grass mowed, picking up and stacking dead limbs, and keeping the property in a general state of repair. Until a house is built upon a lot, the developers, at their option and their discretion, may mow and have dead trees and debris removed from such lots, and the owner of such lot shall be obligated to reimburse the subdivision developers for the cost of such work.

17.) HOME MAINTENANCE. Each lot owner shall be responsible for maintaining the exterior appearance of their log home.

18.) TRASH CONTAINERS. No lot is to be used or maintained as a dumping ground for rubbish. Trash shall only be kept in sanitary containers for weekly pick-up, and screened from public view. Inoperative vehicles,unregistered vehicles, junk equipment, or junk appliances shall not be kept on any lot or in the street.

19.) FENCE/WALL CONSTRUCTION. Fences or walls may be constructed on lots, so long as they have been approved in height, materials, and appearance, by the Saddle Notch Architectural Board. Fences or walls should not be built on top of any utility or drainage easements, or block any access easements.

20.) OUTDOOR APPLIANCES. Heating and Air-conditioning units should be screened from view by shrubbery or fences.

21.) SWIMMING POOLS. Swimming pools and accessory structures, including pool-houses and other approved structures, shall be allowed within the development, upon approval of construction plans by the Saddle Notch Architectural Board. Above ground pools are discouraged, unless topography dictates their use. All pools must be screened from public view by fencing or schrubbery

22.) EXTERIOR LIGHTING. All exterior lighting on each lot shall be installed and maintained to provide illumination as is necessary for that lot only.

23.) ANNOYANCES. No obnoxious or offensive trade or activity shall be carried on upon any lot, nor shall anything be done thereon which may be or become an annoyance to the neighborhood.

24.) PETS. No animals shall be raised, bred, or kept for commercial purposes on any lot. No poultry except for caged tropical birds shall be kept on any lot. No more than three dogs per household will be allowed.

25.) GUNS/HUNTING. The hunting or trapping of any animal or bird shall not be allowed within Saddle Notch Subdivision Phase One.

26.) GARDENS. Vegetable gardening will be allowed only to the rear of a house, or due to topography, to the side of a house, but screened from public view.

27.) SIGNS. No sign of any kind shall be displayed to the public view on any lot, except one professional sign of not more than five (5) square feet advertising the property for sale or rent, or signs used by builders or contractors to advertise the property during the construction and initial sales period; provided however, the foregoing covenant shall not apply to the signs and billboards, or the construction and maintenance of buildings, if any, of the subdivision developer, its agents or assigns, during the development and sales period of lots in the subdivision

28.) TEMPORARY BUILDINGS. No trailer, shack, tent, garage, outbuilding, or temporary structure, shall be used as a residence either temporarily, or permanently except that a temporary construction office or tool shed may be maintained for construction purposes. Such temporary structures must be removed within thirty (30) days after construction is completed.

29.) INVALIDATION of any one of these covenants by judgement or court order shall in no way affect any of the other provisions which shall remain in full force and effect.

30.) COVENANT WAIVERS. No failure or neglect on the part of the developer or its assigns to demand the observance of any covenant, restriction, or condition herein contained shall be deemed a waiver of such violation or operate as an estoppel; nor shall any particular waiver by developer be a waiver of any default whether of the same or of a different nature; but any such covenant, restriction, or condition may be enforced at any time, notwithstanding the fact that a previous violation may have been suffered or permitted.

31.) AMENDMENTS/ADDITIONAL RESTRICTIONS. Notwithstanding anything herein contained to the contrary, the developer reserves the right, for a period of five (5) years from the date hereof, to unilaterally amend the covenants to the requirements of any governmental agency, federal, state, or local, and for the requirements of any mortgage lender, or for any reason that the developer deems advisable for the orderly development of Saddle Notch Log Home Community. Developer reserves unto itself the right to impose additional and separate restrictions at the time of sale of any plots sold by it in this subdivision, at any time during or after the five year period mentioned above, which said restrictions may not be uniform but may differ as to different lots.

32.) COVENANT ENFORCEMENT. If the owner/developers of Saddle Notch Subdivision, Management, their agents or assigns, attempt to enforce by legal means, any of the covenants or restrictions herein, the cost of said enforcement, including, but not limited to reasonable attorneys fees, shall be paid by the lot owner or other, violating, or attempting to violate said restrictions and covenants.