GRANDFATHERFARMSPROPERTYOWNERSASSOCIATION CONSOLIDATEDRULESADREGULATIONS

ThefollowingwereadoptedbytheBoardofDirectorsOctober9,1986andrevisedSeptember15,2003,thenfurtheramendedJuly23,2005.

1. Aspeedlimitof15mphwillbeobservedonallroadswithinthedevelopment.

2. Allpetswillbefencedin,onleashes,orinimmediateanddirectcontrolofthe owner. (SeeItem#6intheAssociation's RestrictiveCovenants.)Strayanimals,thosenot belongingtoanownerinGrandfatherFarms,willbedealtwithaccordingtothe WataugaCountyPetControlOrdinance.

3. Nodisabledorjunkedautomobilesorothervehiclesshallbeparkedonanyowner's propertyoranyroadsideforaperiodlongerthanfifteen(15)days,unlesstheyare garaged.

4. Recreationvehiclesmaybeparkedonanyowner'spropertyuptoforty-eight(48) hoursiftheoccupantsareguestsoftheowner.Trailersoftheutilitytypemaybe parkedonanowner’s propertyonlyifadequatelyscreened.(SeealsoItems#13and

#14oftheAssociation’sRestrictiveCovenants.)

5. ResidenceorotherconstructionplansaretobesubmittedtotheAssociationBoardof Directors,asperItem#1oftheRestrictiveCovenantsforthepurposeofobtaining Associationapproval.

6. Anyaccessorybuildingplacedonpropertyafterpriorapprovalmaynotberentedor leasedexceptaspartoftheentirepremises,includingthemainbuilding.

7. ARoadRepairDepositoftwothousanddollars($2,000) shallberequiredbefore constructioncommencesonanypropertyintheAssociation.Onethousanddollars ($1,000)shallbeconsideredtobenon-refundableandshallbereflectedintheRoad RepairAccounttodefraynormalconstructiontrafficwearandtear.Onethousand dollars($1,000)shallbeconsideredatthediscretionoftheBoardofDirectors refundableaftercompletionofconstruction.Therefundableportionofthedeposit shallbeheldinescrowandreturnedwithaccumulatedinterestfollowingcompletion andsatisfactoryinspection.ShouldtheBoarddeterminethatdamagesexceedthetotal depositoftwothousanddollars($2,000), the propertyownershallbeliableforexcess damage.

TheboardofDirectors,atitsdiscretion,may reducetheRoadRepairDepositfor remodelingprojectstoaslowasfivehundreddollars($500).Thisamountshallbe consideredrefundableandshallbeheldinescrowandreturnedwithaccumulated interestfollowingcompletionandsatisfactoryinspection.ShouldtheBoarddeterminethatdamages exceedthetotaldeposit offivehundreddollars ($500); theproperty ownershallbeliablefortheexcessdamage.

Afivehundred dollar($500) one-timetap-onfeeshallberequired toconnecttoany ofthewellscovered bythevarious GrandfatherFarmsPOAWellAssociations.This feeshallbecredited totherespectivewellaccount.

8. Nofloodorspotlightsshallbeplacedinsuchamanner thatwhenlitthelightthereof shinesonorintoaneighboringhouse.

9. Theminimum heated,livable squarefootage ofanyhomebuiltinGrandfatherFarms subdivision afterAugust 1,2005shallbefifteen hundred(1,500)squarefeet. Additional detachedstructuresshallrequireapproval bytheBoardofDirectorsprior toconstruction andshallcomply withrelevant provisionsoftheRestrictive Covenants.

ThefollowingRuleandRegulationwasadopted andapprovedbyaunanimousvoteof theBoardofDirectorsofGrandfatherFarmsPOAInc.atameeting dulyheldSeptember

12th,1996 andmodified on September 15th, 2003.

All"For Sale"or"For Rent"signserected onanyLotofGrandfatherFarmsdevelopment shallnotexceed two(2)squarefeetinsize.Thesign(s)aretobeconstructedofRedwood orCedarmaterial witheithersandblastedorroutedlettering. Woodtoremain naturalfinishwithlettering onlypainted. Also,otherthananassociation-placedwooden sign reading"PropertyforSale", therearetobeno'·ForSale","'ForRent"ordirectional signs erectedattheStateRd.105entrancetoGrandfatherFarmsdevelopmentorlocations in thesubdivision other thantheproperty forsale.(SeePage2,article9oftheRestrictive Covenants).

ConsolidatedRulesandRegulationsasofJune28, 2008