THIS DECLARATION, made this FIRST day of June, 1969, by LOST NATION DEVELOPMENT COMPANY, an Illinois Corporation (hereinafter sometimes called the "Declarant") WITNESSETH:

WHEREAS, declarant is the owner of the real property described in Article Two of this declaration, and is desirous of subjecting said real property described in said Article Two to the restriction, covenants, reservations, easements, liens and charges hereinafter set forth, each and all of which is and are for the benefit of and pass with said property, and each and every parcel thereof, and shall apply to and bind the successor in interest and any owner thereof.

NOW, THEREFORE, LOST NATION DEVELOPMENT COMPANY hereby declares that the real property described in and referred to in Article Two hereof is, and shall be held, transferred, sold and conveyed subject to the conditions, restrictions, covenants, reservations, easements, liens and charges hereinafter set forth. Further, based on separation of Lost Nation Development Company, the governing body is Lost Nation Property Owners Association and any reference to Declarant within this document governing covenants is interchangeable.

These covenants are to run with the land and shall be binding on all parties and all persons claiming under them until January 1, 2000 at which time said covenants shall be automatically extended until by majority vote of the then owners of the lots hereinafter legally described, it is agreed to change or modify said covenants, or any one thereof, in the whole or in part.

If the parties hereto, or any of them, or their heirs, or assignees 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 or them from so doing or to recover damages or their dues for such violation or to compel him or them to replace or restore any grades for drainage or enforce any of these covenants and restrictions herein contained.

Lost Nation Property Owners’ Association in accordance with Section 3 of Article Three of this declaration, is empowered to make variations of the terms of these covenants where public policy is served, but each such variation must be submitted for the individual judgment of the Property Owners’ Association formed by the Declarant as aforesaid, regardless of its similarity to variations made in previous cases. No open violation of the covenants shall be deemed to release any of the parties from their obligations under these covenants by reason of said violation.

Invalidation of any one of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect.

Section 1. The real property which is and shall be held and shall be conveyed, transferred and sold subject to the conditions, restrictions, covenants, reservations, easements, liens and charges with respect to the various portions thereof set forth in the various clauses and sections of this Declaration, is located in the County of Ogle and State of Illinois, and is more particularly described as follows, to-wit:

Being a resubdivision of Part of Lot 209 of Lost Nation Woodland Homesteads No. 3 and a part of the West ˝ of Section 9, Township 22 North Range 10 East of the 4th Principal Meridian in Ogle County, Illinois.

Section 1. The real property described herein, is subjected to the covenants, restrictions, conditions, easements, reservations, liens, and improvements of each building site thereof; to protect the owners of the buildings erected thereon against such improper use of surrounding building sites as will depreciate the value of their property; to guard against the erection thereof of poorly designed or proportioned structures and structures built of improper or unsuitable materials; to obtain harmonious color schemes; to insure the highest and best development of said property, to prevent haphazard and inharmonious improvements of adequate free spaces between structures; and in general to provide adequately for a high type and quality of improvement in said property and thereby to enhance the values of investments made by purchasers of building sites therein and buildings erected thereon.

Section 2. All lot owners in Lost Nation agree to accept membership in said association and to abide and be bound by the reasonable rules and regulations of said association and to maintain membership therein so long as such ownership is retained. A primary purpose for said association shall be to provide for the maintenance of Lost Nation. Each lot owner shall be subject to assessment for annual dues to the association not to exceed Twenty-five Dollars ($25.00) per annum unless a larger amount is approved by the owners of 65% of the lots in Lost Nation Lakes. No lot shall be used except for residential purposes. No building shall be erected, altered, placed, or permitted to remain on any lot other then one detached single family dwelling not to exceed two-stories in height and a private garage for two or three cars. Only one such structure of any kind is permitted on any one lot. No temporary building or shelter or mobile home or trailer may be occupied on any lot. No dwelling shall be regularly occupied by more than one family.

Section 3. No building shall be erected, placed or altered on any premises in said development until the plans therefor have been approved in writing by the Declarant as to conformity and harmony of external design with existing structures in the development. Upon completion of the development undertaken by Declarant with respect to said properties hereinbefore legally described, the Property Owners’ Association shall control all properties in the area with respect to conformance with the restrictions and covenants hereinbefore authorized. The elevation of the first floor shall be established by the Developer until such time as the approval of such elevations is to be done by the Property Owners’ Association. When there are existing houses erected on each side, where practical, the elevation will be the difference between the adjacent structures. Upon completion of the development undertaken with respect to said properties hereinbefore legally described, the association powers shall specifically include the control of all properties in the area with respect to conformance with the restrictions and covenants herein created.

Access entrance pipes shall be furnished by the lot owners. The size, length and elevation of all entrance pipes shall be approved by the Declarant before installation of any lot entrance. Only one separate entrance shall be allowed for each lot unless written permission for the installation of an additional entrance or entrances is obtained from the Declarant before installation.

No dwelling shall be occupied without approval of the Declarer and in no case shall a dwelling be occupied until the exterior walls are complete in every respect and all plumbing of kitchen and bathroom shall have been completed. All structures shall be completely enclosed and finalized as to harmonize with other exterior homes no later than six months from the day foundations are laid. Exterior finishes and material shall be of sound construction material and no material simulating stone or brick but that is in actuality a tarpaper shingle or asbestos shingle or combination thereof shall be used on any building. No concrete or concrete block construction shall be exposed more than 18 inches above grade level except by written permission by the Declarant. It shall be painted to blend with other outside color of home. *All fuel storage tanks shall be below ground or fully concealed by wooden fencing (no lattice) that exceeds a minimum of 12 inches above the tank height. Location must be to rear or side of proposed or existing building and 15 feet from adjacent property line.

Section 4. All dwellings of one story or bi-level shall have a minimum foundation area of not less than 1100 square feet, exclusive of any garage, porch or breezeway areas; all dwellings of one and one-half or two story height shall have a foundation of not less than 900 square feet, exclusive of any garage, porch or breezeway areas. All garage areas shall be attached except by written permission by the Declarant. All dwellings on lake front lots shall have a minimum of 1300 square feet of living area. Off street parking must be provided for two vehicles.

Section 5. No dwelling shall be located on any lot nearer to the road property line than 27 feet or nearer to any other property line than 15 feet. No dwelling shall be located on any lot nearer to the lake than 30 feet without written permit from Declarer. To permit the best use of certain lots of irregular terrain or shape, the restrictions in this section may be modified by the Declarer. Such permit of modification, however, must be obtained in writing before the start of construction.

Section 6. Fences may be erected to a maximum height of five feet and may be of wood pickets separated by openings of not less than two (2) inches, or steel chain link fencing of standard manufacture. No fence or wall shall be permitted to extend nearer to any street than the minimum building set-back line, and in the case of a corner building, set-back lines on both streets must be observed; provided, however, that a hedge or mass planting at any street intersections shall not be a height to obstruct traffic vision or constitute a traffic hazard.

Section 7. All dwellings shall be connected to the community water supply. No well shall be used as a source of potable water. Every dwelling shall be equipped with an adequate sewage disposal system which shall be constructed and maintained in accordance with the requirements, standards and recommendations of the Department of Public Health of the State of Illinois, Ogle County Public Health Department and the Lost Nation Property Owners Association. Any such sewage system shall be installed so that the effluent there from shall not drain into any ditch, waterway, lake, gully or the surface of the ground. All systems must be approved by the Declarant, or the Lost Nation Property Owners’ Association before installation and inspected prior to covering. An easement of five (5) feet in width can be required from any or all lots along any or all sides of the lot so that water, sewage, telephone, electricity, piped fuel or any other utility service can be installed. Such easement is to run adjacent to the lot boundary.

Section 8. No animals, livestock or poultry of any kind shall be raised, bred or kept on any lots. A dog, cat, and/or other household pet may be kept provided that they are not maintained for a commercial purpose and are kept penned within the confines of the owner’s lot or lots or are leashed. The Declarant or any other property owner shall notify the proper authorities of any violations. No commercial enterprise of any kind shall be conducted upon any of the lots. It is understood that the storage of one commercial vehicle having a normal load carrying capacity not to exceed one and one-half tons that is used by the owner of said lots in the owner’s business may be stored on the premises but the storage of more than one commercial vehicle is prohibited. No inoperable or unlicensed vehicles are to be parked or stored on the premises unless garaged. Likewise, the storage of any other property or equipment shall be considered a commercial purpose except as it is incident to the operation of the dwelling house erected on said lot and to the maintenance of the yard and building. During the period of construction, the storage of necessary building materials will be permitted on the lots where such construction is taking place. This storage is subject to the six (6) months time limit specified in Article 3, Section 3.

Section 9. No noxious or offensive activity shall be carried on upon any lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. At no time, except during building construction, shall any power mowers, tools or other noisy machines be operated out-of-doors before 9 A.M. or after 9 P.M.

Section 10. No lot shall be used or maintained as a dumping ground for rubbish. Trash, garbage or other waste shall not be kept except in sanitary containers. All incinerators or other equipment for the storage or disposal of such material shall be kept in a clean and sanitary condition. No garbage shall be burned except in an approved gas, electric or oil incinerator. No open fires shall be permitted out-of-doors at any time without a permit from the Declarer. All lot owners are responsible for keeping lots mowed and in neat order. Grass growth is not to exceed six (6) inches in height. In the event lot owners are unable to keep their respective lots mowed or in neat order, the Declarant or Property Owners’ Association reserves the right to mow the same after five (5) days written notice to the property owner specifying the violation, the charges thereafter to be assessed against the owner.

Section 11. No motors shall be used on the lake except motors powered by electricity with the exception of the Declarant’s powered lake maintenance boat. No docks or other structures that extend into the lake will be allowed without the written permission of the River Conservancy District Board.

Section 12. No sign of any kind shall be displayed to the public view on any lot except one professionally lettered sign of not more than eighteen (18) inches by twenty-four (24) inches and this may only be a householders name sign. Only one such sign shall be allowed for each home. The provisions of this paragraph shall not apply to "open house" and "for sale" or signs approved by the Property Owners’ Association.

Section 1. All property owners shall display upon their vehicles Lost Nation * identification stickers in a prominent place but not in such a fashion as to interfere with vision.

Section 2. All owners shall require their guests to display guest certificates when using Lost Nation * private facilities and not accompanied by a property owner. Such certificates shall be issued to and made available to all property owners in order to preserve privacy to owners and promote the general safety to all members of Lost Nation.

Section 1. The rights reserved in this Declaration to the Declarant shall apply with equal force and effect to its successors and assignees in connection with the maintenance and preservations of the covenants, conditions, rights and privileges created herein.

Section 1. The restrictions contained herein shall be in addition to any existing restrictions heretofore declared to exist against the property described herein.

Section 2. No lot owner shall acquire any right, title, or interest in land underlying any lake abutting such lot by reason of his ownership thereof.