COVE LANDING PHASE I

RESTRICTIVE COVENANTS

WHEREAS BLACK INK, INC., owner of the following described property in
Pope County, Arkansas, to-wit: The SE ¼ of the SE ¼ of Sec. 36, T-8-N, R-20-W,
Containing 39.80 acres more or less. Part of the W ½ of the SW ¼ of Sec. 31, T-8-
N, R19W, described as: Beginning at the Southwest Corner of the SW ¼ of Sec.
31 and being marked by a found steel fence post; thence N 01° 26’ 07" W a
distance of 1,317.24 ft, to a found steel fence post marking the Northwest Corner
of the SW ¼ of the SW ¼ of said Sec. 31; thence N 01° 27’ 16" W along the West
line of the NW ¼ of the SW ¼ of said Sec. 31 a distance of 469.79 ft. to a set iron
pin and set steel guard post; thence N 87° 36’ 35" E a distance of317.41 ft. to a
set iron pin and set steel guard post; thence N 75° 47’ 06" a distance of 61.46 ft.
to a set iron pin and set steel guard post; thence S 85°36’ 50" E a distance of
301.70 ft. to a set iron pin and set steel guard post; thence S 01° 42’ 27" E a
distance of 1,190.71 ft. to a set iron pin and set steel guard post; thence N 89°
21’ 30" E a distance of 453.29 ft. to a set iron pin and set steel guard post; thence
S 00° 08’ 52" W a distance of208.96 ft, to a set iron pin and set steel guard post;
thence S 53° 15’ 38" Ea distance of 92.98 ft. to a set iron pin and set steel guard
post; thence N 86°33’ 06" E a distance of 228.27 ft. to a set iron pin and set steel
guard post; thence S 01° 19’ 07" E a distance of 311.06 ft. to a set iron pin and set
steel guard post; thence S 89° 14’ 53" W a distance of 184.41 ft. to a set iron pin
and found steel fence post; thence S 89° 11’ 55" W a distance of556.65 ft. to the
point of beginning and containing 36.06 acres, more or less part of the W ½ of
the NW ¼ Sec. 6, T-7-N, R-19-W, described as commencing at the Northwest
Corner of the W ½ of the Sec. 6 and being marked by a found steel fence post;
thence N 88° 11’ 55" E a distance of586.65 ft. to a found steel fence post and the
point of beginning; thence N. 88° 12’ 10" E a distance of 659.98 ft. to a found
steel fence post; thence S 01° 01’ 48" E a distance of 2,615.12 ft. to a found steel
fence post on the South line of the said W ½ of the NW ¼; thence S 89° 14’ 54" W
along the said South line of the W ½ of the NW ¼ a distance of 660.00 ft. to a
found steel fence post; thence N 01° 01’ 43" W a distance of 2,603.08 ft. to the
point of beginning and containing 39.53 acres more or less. All being in Pope
County, Arkansas. Containing in aggregate 115.39 acres, more or less. Less and
except all easements and rights-of-way of record. the same being the real
property now duly plated as COVE LANDING, PHASE I, subdivision to Pope
County, Arkansas, as such plat is recorded in book "J ", page 89, of the records in
the office of the Circuit Clerk and Ex Officio Recorder for Pope County,
Arkansas, does hereby make the following declarations as to limitations,
restrictions, easements and uses to which the lots and tracts constituting such
subdivision may be put, and hereby specifies that such declarations shall
constitute covenants to run with all the land as provided by law, to be binding
on all owners of record and all persons claiming under them, and for the benefit
of said owners and future owners in such said subdivision, this Declaration of
Restrictions, being designed for the purpose of insuring the use of the property
for attractive residential purposes only, to prevent nuisances, to prevent the
impairment of the attractiveness of the property, to maintain the desired
appearance, tone and ambiance of the community and thereby to secure to
each owner the full benefit and enjoyment of his property, with no greater
restriction on the free and undisturbed use of his site than is necessary to ins ure
the same advantages to other site owners; NOW THEREFORE, the grantor makes
this Statement of Restrictive Covenants and Bill of Assurance.

1) LAND USE. All lots except 17, 67, 68, 69, 71, 73, 75, 77 and 79 shall be restricted
to single family residences with a minimum of 2,000 square feet consisting of
heated and cooled living space in the main residential building (exclusive of
porches, carports, and such outbuildings as might reasonably be required in the
use of the lot and the house as a residence subject to the restrictions set forth in
paragraph 5 below). The lots enumerated by number in the preceding sentence
shall have minimum building sizes of 1,800 square feet and all other respects shall
comply with the requirements of that sentence. Each improved lot must include
among its improvements an enclosed garage able to accommodate at least
two cars with entry doors positioned in such a way that they may not be seen
from the public road toward which the front of the home faces. Any detached
garage must be architecturally consistent with the residence and must match in
quality, workmanship, design and execution the materials and characteristics of
the principal residence. All residences must have hard surfaced, paved
driveways sufficient in width to adequately accommodate automobile traffic.
Any residence receiving mail at the lot location must house the mailbox in a
receptacle approved by the United Postal Service encased in free standing
brick and mortar housing matching or complementing the principal residence
and subject to approval under paragraph 14 below.

2) SUBDIVISION OF LOTS. No lot may be subdivided nor used for access to lands
not in the subdivision.

3) UTILITIES AND EASEMENTS FOR UTILITIES.

All utilities shall be underground and
each lot shall be the subservient estate to such easements as are reflected on
the plat referred to above.

4) TEMPORARY STRUCTURES. No temporary structure, including mobile homes,
may be placed on the property except for that required for the construction of
permanent improvements on the property and then not to exceed six (6)
months in the aggregate.

5) OUTBUILDINGS. In addition to the principal residence and detached garage,
if applicable the property may have up to two (2) additional outbuildings, the
construction of which shall be subject to the same requirements and conditions
as that set forth for garages in paragraph 1.

6) LOCATION OF IMPROVEMENTS AND BUILDING SETBACKS.

Except for those lots
identified in the second sentence of this paragraph, no building shall be
constructed on any lot nearer to the street than 75 feet, nearer to any side lot
line than 20 feet, and nearer to any rear lot line than 25 feet, except for such
deviations there from as shall be set forth on the plat referred to above, which
plat shall take precedence over these requirements. Lots 3, 14, 19, 21, 30, 33, 36,
37, 38, 40, 62, 63, 64, 67, 68, 69, 71, 73, 74, 75, 77, 79, 81, 86, 89 and 90 shall have
front setbacks of 30 feet and in addition, the following lots shall have a side lot
setback of 10 feet; the south side of lots 14, 17, 30, and 84B, the north side of lots
21 and 85, and the west side of lot 37, all as set forth more particularly in the plat
referred to above.

7) RUN OFF AND WATERSHED PROTECTION EASEMENT.

Recognizing the
subdivision’s location within the Galla Creek Watershed and the commensurate
desire to inhibit unwanted chemicals and particulates from entering the said
watershed, the owner, by these presents, places an easement for a buffer zone.
The precise location of which easement on each lot is set forth on final plat
referred to above and within the boundaries of which easements the following
covenants and restrictions shall prevail which shall run with the land:
A) The easements created by this paragraph are permanent.
B) No permanent improvement of any kind except fencing may be
placed within the confines of the easement.
C) No toxic chemicals, deleterious substances or substances or activities
which might which might present a danger to the public health shall be
conducted or stored on said easements.
D) Developer shall supply to each purchaser information providing citizen
guidelines for watershed protection in a form to be provided by the
Arkansas Department of Health.
E) Developer and any successor in interest will be responsible for erecting
and maintaining erosion control mechanism on each lot and public way
in the form of silt screens, straw bales or their substantial equivalent, the
effect of which is to retard the erosion of soil and the discharge of
particulates into the watershed.

8) ANTENNAE AND SATELLITE DISHES.
No radio or television antenna or tower shall be placed on the property in
excess of 30 feet above ground level where located and no satellite dish shall
be placed or maintained on the property that may be seen from public road.

9) ANIMALS. No animals, livestock, poultry of any kind (except ducks and geese)
shall be kept on any lot except for household pets and then not as a part of a
routine commercial venture. Any single landowner having fee simple title to four
(4) or more contiguous acres may maintain two (2) large domesticated animals
including, but not limited to, horses and specifically excluding swine. The
landowner shall assume exclusive responsibility to keep the animals retained by
appropriate fencing, which shall be of such design and materials as approved
by the committee set forth in paragraph 14 below.

10) NUISANCES. No noxious or offensive trade or activity shall be carried on upon
any lot, nor shall any trash, ashes or other refuse be thrown, placed or dumped
upon any vacant lot, nor shall anything ever be done which may be or become
an annoyance or nuisance to the neighborhood. Trash, garbage or other waste
shall not be kept except temporarily in a sanitary container. Lots shall be kept
mown and underbrush and other unsightly growth shall not be permitted to
remain on the property. Any lot which remains at an unmown condition after a
reasonable opportunity after notice to the owner to remedy the same, may be
mown by the grantor or its successors in interest for which a reasonable charge
may be assessed and said charge, while unpaid, shall constitute a lien against
the lot so cleaned up until the same is paid in full. Grantor or its successors in
interest shall have the right to enforce this provision, including proceeding in
Chancery Court of Pope County, Arkansas, to declare, establish and foreclose a
lien on the land, and shall be entitled to recover the cost incurred for the
cleanup, interest on the same and all costs incurred in enforcing this lien,
including a reasonable attorney’s fee.

11) SIGNS. The construction or maintenance of billboards, or advertising boards
or structures on any lot is specifically prohibited, except that billboards
advertising the sale or rental of such property are permitted provided they do
not exceed 30 square feet in size.

12) TEMPORARY STRUCTURES AND SUBSTANDARD HOUSING.

No trailer, basement,
tent, shack, garage, barn or other outbuilding erected on a building site
covered by these covenants shall at any time be used for human habitation,
temporarily or permanently, nor shall any structure of a temporary character be
used for human habitation.

13) PARKING RESTRICTIONS. No automobile, truck, trailer, mobile home, tent or
temporary structure of any nature whatsoever, shall ever be parked, located or
otherwise maintained on any lot, provided that it is not the intention of this
paragraph to exclude the temporary parking of passenger automobiles on any
portion of the garage driveway. Recreational vehicles may be parked regularly
on a lot, but only in a manner that they cannot be seen from the road servicing
the house and lot in question. This exception shall not be construed to authorize
a temporary structure in contravention of paragraph 11 above.

14) PRESERVATIONS OF SIGHT LINES. No fence, wall, hedge or shrub planting
which obstructs sight lines at elevation between one (1) and six (6) feet above
the roadways shall be placed or permitted to remain on any corner lot within
the triangular area formed by the street property line and a line connecting
them at points twenty-five (25) feet from the intersection of the street line, or in
the case of a rounded property corner from the intersection of the street
property lines extended. The same right line limitation shall apply on any lot
within ten (10) feet from the intersection of a street property line with the edge
of a driveway or alley pavement. No tree shall be permitted to remain within
such distance of intersection unless the foliage is maintained at sufficient height
to prevent obstruction of such sight lines. This restriction shall have no application
to the brick fence constructed along the south lines of lots 1 and 3 and parallel
to Bradley Cove road.

15) ARCHITECTURAL AND IMPROVEMENT PLANS CONTROL.

No building, fence wall
or other structure shall be constructed, erected, or maintained, nor shall any
addition thereto or change or alteration therein be made until plans and
specifications, color scheme, plot plan, and grading plan therefore, and other
information satisfactory to Grantor, or its duly authorized representative, shall
have been submitted in writing to and approved in writing by the said Grantor,
or its duly authorized representative. In passing upon such plans, specifications,
and other requirements, the said Grantor or its duly authorized representative,
may take into consideration the suitability of the proposed building, fence, wall
or other structure, and the materials of which it is proposed to erect the said
building, fence, wall or other structure, the harmony thereof with the
surroundings, and the effect of the building, fence, wall or other structure as
planned or the outlook from adjacent or neighboring property. The Grantor’s
approval or disapproval as require d in these covenants shall be in writing. In the
event Grantor, or its designated representative, fails to approve or disapprove
within ten (10) days after plans have been submitted, or in any event, if no suit to
enjoin the construction has been commenced prior to the completion thereof,
approval will not be required and the related covenants shall be deemed to
have been complied with fully. Nothing contained in this covenant nor any
consent by Grantor shall in any way be deemed to prevent any owners of
property in this subdivision from enforcing any legal rights which such owners
may have as to any improvement in this subdivision. The authority reserved to
the grantees in this paragraph shall extent to granting and allowing reasonable
variances from the mandates of other requirements in these restrictions so long
as the exercise of grantor’s discretion does not unreasonably diminish the overall
value of the subdivision as a residential setting. This authority shall extend to
allowing, variances that portion of paragraph 1 mandating that garage door
not face the street served by them when the lot shape, building location,
topograph or other exigency renders such requirements impossible or
impractical.

16) AMENDMENTS. Any and all of the covenants, provisions or restrictions set forth
in this Declaration of Restrictions may be amended, modified, extended,
changed or cancelled, in whole or in part, by a written instrument signed and
acknowledged by the owner or owners of more than fifty-one percent (51%) in
area of the land in this subdivision, and the provisions of such instrument so
executed shall be approved by Grantor, and shall be binding from and after the
date it is duly filed for record in Pope County, Arkansas. Each covenant in this
instrument, unless expressly provided otherwise, shall remain in full force and
effect.

17) PARTIAL INVALIDATION. Invalidation of any restriction set forth herein or any
part thereof by an order, judgment, or decree of any court, or otherwise, shall
not invalidate or affect any of the other restrictions or any part thereof as set
forth herein but shall remain in full force and effect.

18) RIGHT TO ENFORCE. The covenants, agreements and restrictions herein set
forth shall run with the title to the lots in this addition and bind the present
owners, their heirs, successors and assigns, future owners and their heirs,
successors and assigns; and all parties claiming by, through or under them shall
be taken to hold, agree and covenant with the owners of other lots in the
addition, their heirs, successors and assigns, and with owners, as to the
covenants and agreements herein set forth and contained. None shall be
personally binding on any person, persons, or corporation except with respect to
breaches committed during its his or their holding of title to lots in the addition.
Any owner or owners of lots in this addition, or owners, shall have the right to sue
for and obtain and injunction, prohibitive or mandatory, to prevent the breach
of or to enforce the observance of any of the covenants, agreements or
restrictions contained herein together with any other rights to which they might
otherwise be entitled under the laws of the State of Arkansas. The invalidation of
any one of these covenants, restrictions or agreements herein contained by the
order of a court of competent jurisdiction shall in no way affect any of the other
provisions hereof which will remain in full force and effect.

IN WITNESS WHEREOF, the Owner has hereunto set its hand this 21st day of
September, 1994.
BLACK INK, INC.
BY:____________________________
JAMES P. KNIGHT, President

ATTEST,
___________________________
JON R. SANFORD, Secretary

STATE OF ARKANSAS ACKNOWLEDGMENT
COUNTY OF POPE
Before me, a Notary Public, within and for the County and State aforesaid, duly
qualified, commissioned and acting, personally appeared JAMES P. KNIGHT and
JON R. SANFORD, to me well known to be the President and Secretary of BLACK
INK, INC., and stated that they had executed and delivered the same for the
consideration, purposes and uses therein mentioned and set forth.
WITNESS my hand and seal this 21st day of September, 1994.
_______________________
NOTARY PUBLIC
My commission expire s:
Recorded 10/27/94, Book 26W, Page 274-285.