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DOC #2017055571 Pages 93 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE A RESIDENTIAL SUBDIVISION IN MONTGOMERY COUNTY, TEXAS NOTICE: THIS DOCUMENT SUBSTANTIALLY EFFECTS YOUR RIGHTS AND OBLIGATIONS AS AN OWNER OF PROPERTY IN THIS SUBDIVISION. READ IT CAREFULLY. WITHOUT LIMITATION, YOU ARE SPECIFICALLY ADVISED AS FOLLOWS: (i) ARTICLE Tl PROVIDES FOR MANDATORY MEMBERSHIP IN) A HOMEOWNERS' ASSOCIATION, AND ARTICLE V PROVIDES FOR MANDATORY PAYMENT OF ASSESSMENTS TO THE ASSOCIATION AND A CONTINUING LIEN AGAINST YOUR PROPERTY TO SECURE PAYMENT OF ASSESSMENTS WHICH MAY BE FORECLOSED EVEN | IF THE PROPERTY IS YOUR HOMESTEAD. (ii) UNDER ARTICLES I AND XI DECLARANT RETAINS SUBSTANTIAL RIGHTS DURING THE DEVELOPMENT PERIOD, INCLUDING THE UNILATERAL RIGHT TO SET RATES FOR REGULAR ASSESSMENTS AND IMPOSE SPECIAL ASSESSMENTS, AND, WITHOUT NOTICE TO OR CONSENT OF ANY OWNER. TO ANNEX ADDITIONAL PROPERTIES INTO THE SUBDIVISION, TO AMEND ANY PLAT AND TO AMEND THIS DOCUMENT AND ANY OTHER "GOVERNING DOCUMENTS", AND (iv) SECTION 11.12 SETS FORTH PROCEDURES REGARDING MANDATORY DISPUTE RESOLUTION, INCLUDING A REQUIREMENT THAT A "DISPUTE NOTICE" BE GIVEN TO DECLARANT WITHIN 150 DAYS AND ESTABLISHMENT OF A MAXIMUM TWO YEAR STATUTE OF LIMITATIONS.

YOUR RIGHTS TO ASSERT A "DISPUTE" MAY BE LOST IF YOU FAIL TO COMPLY WITH SECTION 11.12.

GF # 06/Koj = Stewart Title of Montgomery County DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE A RESIDENTIAL SUBDIVISION IN MONTGOMERY COUNTY, TEXAS TABLE OF CONTENTS Section 1.01: | Property Subject To Declaration Section 1.02: | Annexation of Other Proper Section 1.03: | Notice; Effective Date and Effect of Annexation Subordination To Certain Covenants.

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ONTENTS Section 1.01: | Property Subject To Declaration Section 1.02: | Annexation of Other Proper Section 1.03: | Notice; Effective Date and Effect of Annexation Subordination To Certain Covenants.

| DEFINITIONS Section 2.10: | Declaration Section 2.11: | Development Period Section 2.12: | Emergency Section 2.13: | Governing Documents Section 2.14: | Lot Section 2.17: | Person Plat Prevailing Community Standards Regulated Modification Related Parties Rules and Regulations Subdivision Subdivision Facilities Townhome Po WATERWAY LANDING AT EAST SHORE HOME | DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 2 | CJ OWNER ASSOCIATION,INC.

ARTICLE IV | ARCHITECTURAL CONTROL COMMITTEE Section 4.01: | Organization; Compensation ; Section 4.02: | Function and Powers Section 4.03: - Section 4.04: | Submission and Response; Failure of ACC to Act; ACC Decisions Section 4.05: plied Conditions of App Section 4.06: | Inspection Rights Section 4.07: | Records of Architectural Control Committee Section 4.08: | Liability of Architectural Control Committee | MAINTENANCE FUND _ Obligation for Payments to Maintenance Fund Section 5.02: | Administration of Maintenance Fund Section 5.03: | Base Rate and Subsequent Computation of Regular Assessments Section 5.04: | No Waiver or Release Section 5.05: | Special Assessments Section 5.06: | Specific Assessments Section 5.07: | Lien for Assessment Section 5.08: | Effect of Nonpayment of Assessments Section 5.09: | Foreclosure; Bankruptc Section 5.10: | Assessments as Independent Covenant ARTICLE VI | MAINTENANCE, INSURANCE, CASUALTY LOSSES AND CONDEMNATION.

| Effect of Nonpayment of Assessments Section 5.09: | Foreclosure; Bankruptc Section 5.10: | Assessments as Independent Covenant ARTICLE VI | MAINTENANCE, INSURANCE, CASUALTY LOSSES AND CONDEMNATION.

Section 6.01: | Association Maintenance Responsibilities Section 6.02: | Owner Maintenance Responsibilities Section 6.03: | Right of Entry and Inspection; Owner’s Default Section 6.04: | Casualty Losses — Association Responsibilities Section 6,06: | Owner Insurance Section 6.07; | Association Insurance Section 6.08: | Agreement Relating to Common Walls and Other Shared Structural Components Section 6.09: = 3 = S < s — DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 3 ARTICLE VII | USE RESTRICTIONS Section 7.01: | Residential Use; Group Homes; Treatment Facilities Section 7.02: Section 7.03: Section 7.04: Section 7.05: Section 7.06: Section 7.08: | Building Materials Section 7.10: | Firearms and Fireworks Prohibited Section 7.11: Section 7.12: Electronic Signal Devices Section 7.15: Section 7.16: | Unoccupied Residences Section 7.17: | Undeveloped Lots Section 7.18: | Garage Usage Section 7.19: Section 7.20: | ARTICLE VIL Section 8.01: Section 8.02: Section 8.03: Section 8.04: Section 8.06: | Temporary Structures; Sales Office Section 8.08: | Window and Door Glass Covers Section 8.10: | Antennas and Satellite Dish Systems : Section 8.11: |Signs Cd Section 8.12: Section 8.13: | Traffic Sight Line Areas Section 8,14: | Utility, Lighting and Energy Facilities Section 8.15: | Pools; Prohibited Section 8.16: | Artificial Vegetation, Exterior Scul Section 8.17; | Irrigation Section 8.18: ARTICLE IX | EASEMENTS Section 9.01: | Incorporation of Easements Section 9.02: | Owner’s Easement for Use and Enjoyment

| Artificial Vegetation, Exterior Scul Section 8.17; | Irrigation Section 8.18: ARTICLE IX | EASEMENTS Section 9.01: | Incorporation of Easements Section 9.02: | Owner’s Easement for Use and Enjoyment Section 9.03: | Easement for Encroachment and Overhang ture, and Similar Items DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Owners’ Access Easement Association and ACC Blanket Access Easement Section 9.06: | Governmental Functions; Utilities and Other Services Section 9.07: | Egress/Regress to Public Way Required Section 9.08: | Title to Easements and Appurtenances Not Conveyed Section 9.09: | Reserve Easements Section 9.10: | Easement Perpetual ARTICLE X | ENFORCEMENT Section 10.01: | Strict Compliance Required Section 10.02: | Enforcement Section 10.03: | Liability for Conduct of Others (“Related Parties” Section 10.04: | Obligation for Payment of Costs and Expenses Resulting from Violations Section 10.05: | Notice and Opportunity to be Heard Section 10.06: | Filing of Notices of Non-Compliance ARTICLE XI | DEVELOPMENT PERIOD Section 11.01; | Application Section 11.02: | Appointment of Board and ACC; Authority of Association; Declarant as Member Architectural Control; Builder Approval Section 11.04: | First Meeting of Class A Members; Transfer of Control Section 11.05: | Community Properties Sales Activities Section 11.08: | Assessments Section 11.09: | Notices to Declarant Section 11.10: | Amendment of Governing Documents or Plat; Annexation Section 11.11: | Limitation of Liabilit Mandatory Dispute Resolution Procedures; Limitations ARTICLE XII | GENERAL PROVISIONS Section 12.01: | Term Section 12.02: | Amendment Section 12.03: | Notices to Association, ACC, Owners and Tenants

Mandatory Dispute Resolution Procedures; Limitations ARTICLE XII | GENERAL PROVISIONS Section 12.01: | Term Section 12.02: | Amendment Section 12.03: | Notices to Association, ACC, Owners and Tenants - Section 12.04: | Information To and From Mortgagees Section 12.05: | Managing Agent Section 12.06: | Conflicts in Governing Documents Section 12.07: | Interpretation Section 12.08: | Severabilit Section 12.09: | Effective Date DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 5 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE A RESIDENTIAL SUBDIVISION IN MONTGOMERY COUNTY, TEXAS STATE OF TEXAS § § KNOW ALL BY THESE PRESENT THAT: COUNTY OF MONTGOMERY § WHEREAS, WATERWAY BUILDERS, LLC., a Texas limited liability company (hereinafter referred to as the "Declarant") as well as The Woodlands Development Company, L.P. a Texas limited partnership (“TWDC”) are the current owners of all that certain real property located in Montgomery County, Texas, as more particularly described in Section 1.01 hereof; and Declarant desires to create and carry out a general and uniform plan for the improvement, development, maintenance, use and continuation of a residential community on the property as set forth in Article I hereof for the mutual benefit of the successors in title to Declarant and TWDC which property will be conveyed subject to the covenants, conditions, restrictions, liens, charges and easements as herein set forth.

NOW, THEREFORE, in order to carry out a uniform plan for the improvement, development, maintenance, sale and use of the properties within the Subdivision as herein defined, it is hereby

ein set forth.

NOW, THEREFORE, in order to carry out a uniform plan for the improvement, development, maintenance, sale and use of the properties within the Subdivision as herein defined, it is hereby declared that all of the properties within the Subdivision shall be held, sold and conveyed subject to the following covenants, conditions, restrictions, easements, charges and liens (sometimes herein collectively referred to as "covenants and restrictions"), all of which are for the purposes of enhancing and protecting the value, desirability and attractiveness of said properties. These covenants and restrictions shall run with said real property and be binding. upon all parties having or acquiring any right, title, or interest in said real property or any part thereof, their heirs, predecessors, successors and assigns, and shall inure to the benefit of each Owner thereof.

Article I Property Subject to This Declaration SECTION 1.01 Property Subject to Declaration. The real property which, by the recording of this Declaration, will be held, transferred, sold, conveyed, used, occupied, and mortgaged or otherwise encumbered subject to this Declaration is that certain real property located in Montgomery County, Texas, more particularly described as follows, to wit: Lots 1,2,3,4,5,6,7,8,9,10 in Block One (1); Lots 1,2 in Block Two (2); Lots 1,2,3,4,5,6,7 in Block Three (3); of The Woodlands, VILLAGE OF GROGANS MILL LAKE WOODLANDS EAST SHORE SEC. 18, an addition in Montgomery County, Texas, according to the map or plat thereof recorded in/under Cabinet Z, Sheet 4277 of the Map/Plat Records of Montgomery County, Texas (the “Plat’””’).

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 6

er Cabinet Z, Sheet 4277 of the Map/Plat Records of Montgomery County, Texas (the “Plat’””’).

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 6 SECTION 1.02 Annexation of Other Property. Declarant may annex additional real property located within the Plat and make same a part of the "Subdivision" (as hereafter defined) by amendment of this Declaration as provided in Article XI without the joinder or consent of, or any notice other than as set forth in the next Section to, any Owner or other Person other than TWDC so long as TWDC owns any of the Community Properties or Lots. Any other real property may be annexed only upon approval by Owners, including TWDC as long as TWDC owns any of the Community Properties or Lots, of an amendment of this Declaration evidencing the annexation in accordance with applicable provisions of Section 12.02.

SECTION 1.03 Notice: Effective Date and Effect _of Annexation. Whenever any real property is annexed as provided in Section 1.02, the annexation must be evidenced by filing of, and is effective from the date of filing of, the amendment evidencing the annexation in the Official Public Records of Real Property of Montgomery County, Texas. From and after the date of filing of the amendment evidencing the annexation, the real property covered thereby will be included within the "Subdivision" (as hereafter defined), and thereafter is fully covered by and subject to all terms and provisions of this Declaration (as amended), SECTION 1.03 Subordination to Certain Covenants. Declarant intends that this Declaration shall be subordinate to the Woodlands Covenants (as to any portions of the Property now encumbered by or hereafter annexed into the Woodlands Covenants), to the ESCA Covenants

ds that this Declaration shall be subordinate to the Woodlands Covenants (as to any portions of the Property now encumbered by or hereafter annexed into the Woodlands Covenants), to the ESCA Covenants (as to any portions of the Property now encumbered by or hereafter annexed into the ESCA Covenants), and to the LWPOA Covenants (as to any portions of the Property now encumbered or hereafter annexed into the LWPOA Covenants), and the Initial Land Use Designation made by the Woodlands Land Development Company, L.P. dated December 16, 2016, and filed for record under File No. 2016113445 in the Official Public Records of Real Property Records of Montgomery County, Texas (the “Initial Land Use Designation”). The Woodlands Covenants include the covenants attached as Exhibit B to the deed from The Woodlands Community Association, Inc. to The Woodlands Development Corporation recorded under Volume 841, Page 297 and by the Annexation of Additional Lands to the Property subject to the Covenants, | Restrictions, and Easements, Charges, and Liens of the Woodlands dated December 15, 2016, and filed for record under File No. 2016113366 in the Official Public Records of Real Property Records of Montgomery County, Texas, as amended and similar covenants recorded as exhibits to other deeds. The LWPOA Covenants include those recorded under Clerk’s File No. 8600794 and by the Supplementary Declaration of Covenants, Conditions, Restrictions, and Easements of the Lake Woodlands Property Owner’s Association dated August 17, 2004, and filed for record under File No. 2004-092751 in the Official Public Records of Real Property Records of Montgomery County, Texas, and by the Annexation of Additional Lands to the Property subject to the Covenants,

cord under File No. 2004-092751 in the Official Public Records of Real Property Records of Montgomery County, Texas, and by the Annexation of Additional Lands to the Property subject to the Covenants, Restrictions, and Easements, for East Shore dated December 16, 2016, and filed for record under File No. 2016113367 in the Official Public Records of Real Property Records of Montgomery County, Texas, as amended. The ESCA Covenants include those recorded under Clerk’s File No.

2004-125172, as amended. The Woodlands Covenants, ESCA Covenants, LWPOA Covenants, and Initial Land Use Designation are collectively referred to herein as the (“Other Applicable Covenants”). Each Owner is obligated to pay assessments applicable to and pursuant to the Other Applicable Covenants, if any and as applicable.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 7 TO THE EXTENT THAT ANY RIGHTS GRANTED OR RESTRICTIONS CONTAINED IN THIS DECLARATION CONFLICT WITH ANY RIGHTS GRANTED IN OR RESTRICTIONS CONTAINED WITHIN THE OTHER APPLICABLE COVENANTS, SAID OTHER APPLICABLE COVENANTS SHALL HAVE PRIORITY, SHALL SUPERSEDE, AND SHALL CONTROL.

Article II Definitions Unless the context otherwise prohibits and in addition to other defined terms set forth herein, the following words and substantive provisions regarding same when used in this Declaration shall apply, mean and refer to the following: 4 SECTION 2.01 "Architectural Control Committee" or "ACC" means the committee established pursuant to Article IV of this Declaration.

SECTION 2.02 "Architectural Guidelines" means the procedural, aesthetic, environmental and architectural policies and procedures from time to time adopted by the Architectural Control

his Declaration.

SECTION 2.02 "Architectural Guidelines" means the procedural, aesthetic, environmental and architectural policies and procedures from time to time adopted by the Architectural Control Committee in accordance with Article IV hereof; regardless of nomenclature or manner of designation, d may include Rules and Regulations.

SECTION 2.03 “Association” means WATERWAY LANDING AT EAST SHORE HOME OWNER ASSOCIATION, INC., a Texas non-profit corporation, incorporated for the purposes contemplated by this Declaration, and its successors (by merger, consolidation or otherwise) and assigns.

SECTION 2.04 "Board" or "Board of Directors" means the Board of Directors of the Association.

SECTION 2.05 "Builder" means an Owner other than Declarant who acquires any Lot for purposes of “completion of the initial sale" of the Lot as set forth in Section 11.03.

SECTION 2.06 "Bylaws" means the Bylaws of the Association, as from time to time amended in accordance with applicable provisions of the Bylaws.

SECTION 2.07 "County" means Montgomery County, Texas, and any other governmental authority with jurisdiction as to the subject matter to which the term refers in the context in which the term is used.

SECTION 2.08 Subject Section 11.05 hereof; "Community Properties" means: 2.08.1 all common areas designated herein or by a Plat intended for the common use of Owners, including without limitation Reserves "A" through "I", inclusive, as so designated on the Initial Plat of the Subdivision to the extent that such property has been annexed and made subject to this Declaration; 2.08.2 all private streets, alleys and shared common driveways within the Subdivision, DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 8

ation; 2.08.2 all private streets, alleys and shared common driveways within the Subdivision, DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 8 including in particular but without limitation all of the areas designated as “Waterton Cove Pl (PVT)/(50' P.A.E/P.U.E.)” “Natural Terrace Way (PVT)/50’ ALLEY (PVT)”, “LAKE FRONT CIR. (PVT)/(60’ P.A.E./P.U.E.), “Natural Terrace Way (PVT)”, “60’ P.A.E/P.U.E.”, “(VARIABLE WIDTH P.A.E./P.U.E.), and three "30' Alley (PVT)", on the Initial Plat of the Subdivision unless and until, and as to any part of; any private street which is dedicated to the .

public to the extent that such property has been annexed and made subject to this Declaration; 2.08.3 all mail box banks, water meter banks and/or electrical meter banks so designated by Declarant or the Board as permitted by Section 9.06, including entry, access and exit areas regarding same; 2.08.4 all Subdivision Facilities;. and 2.08.5 all other properties, real or personal, conveyed to or dedicated to the use of: or otherwise acquired by the Association for the common use, enjoyment and benefit of the Association, together with all improvements thereon and appurtenances thereto.

SECTION 2.09 "Declarant" means WATERWAY BUILDERS, LLC., a Texas limited liability corporation, and its successors and assigns if such successors or assigns: 2.09.1 acquire all of the then remaining undeveloped or developed but previously unoccupied or unsold Lots within the Subdivision from Declarant for purposes of development and resale; or 2.09.2 are expressly designated in writings by Declarant as a successor or assign of Declarant hereunder, in whole or in part.

SECTION 2.10 "Declaration" means this Declaration of Covenants, Conditions,

09.2 are expressly designated in writings by Declarant as a successor or assign of Declarant hereunder, in whole or in part.

SECTION 2.10 "Declaration" means this Declaration of Covenants, Conditions, Restrictions and Easements for WATERWAY LANDING AT EAST SHORE, and all lawful amendments thereto.

SECTION 2.11 "Development Period" means the period of time beginning on the date of recordation of this Declaration in the Official Public Records of Real Property of Montgomery County, Texas, and ending on the earlier occurrence of either of the following events: 2.11.1 five (5) years after the later to occur of the date of recordation in the Official Public Records of Real Property of Montgomery County, Texas, of (a) this Declaration, or (b) the last notice of annexation of real property by Declarant as permitted by Section 1.02 which is filed of record not later than five (5) years after the date of recordation of this Declaration; or 2.11.2 upon the date of filing in the Official Public Records of Real Property of Montgomery County, Texas of Declarant's notice of termination of the Development Period, provided that at any time prior to complete termination of the Development Period Declarant may file one or more statements of limited termination of the Development Period to apply only to the specific functions, rights and/or responsibilities as stated therein.

SECTION 2.12 "Emergency" means (i) any condition which may or does cause an imminent risk of infestation by termites, rats or other vermin, and any other health, fire or safety hazard, (ii) DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 9 any condition which may or does cause waste of water or water infiltration to another Lot,

i) DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 9 any condition which may or does cause waste of water or water infiltration to another Lot, Community Properties and any improvements located thereon, and (iii) any other thing, condition or exigent circumstances which may or does present an imminent risk of harm or damage to a Lot, Community Properties or any improvements thereon or to any Owners or occupants thereof. The determination of the Board, the ACC or their Related Parties that an emergency exists is final.

SECTION 2.13 "Governing Documents" means all documents and applicable provisions thereof regarding the use, maintenance, repair, replacement, modification or appearance of any properties within the Subdivision, including each Lot, or any rights, responsibilities or obligations of any Owners pertaining thereto or to the Association, ACC or Declarant including without limitation this Declaration, the Bylaws and Articles of Incorporation of the Association, Rules and Regulations, Architectural Guidelines, all written decisions and resolutions of the ACC and Board, and all lawful amendments to any of the foregoing.

SECTION 2.14 "Lot" means any of the numbered plots of land shown upon any Plat upon which a Townhome is, or may be, built. The term "Lot" does not include Community Properties, and does not include commercial or other reserves so designated by a Plat, if any.

SECTION 2.15 "Member" means every Person who is an Owner and holds a membership in the Association. Every Member which is not a natural person must designate a representative of such entity who is a natural person as provided in Section 3.03.

SECTION 2.16 "Owner" means, whether one or more Persons:

Every Member which is not a natural person must designate a representative of such entity who is a natural person as provided in Section 3.03.

SECTION 2.16 "Owner" means, whether one or more Persons: 2.16.1 the owner according to the Official Public Records of Real Property of Montgomery County, Texas, whether one or more Persons, of the fee simple title to a Lot, including any mortgagee or other lien holder who acquires such ownership through judicial or nonjudicial foreclosure or proceedings in lieu thereof; but excluding any Person holding a lien or other encumbrance, easement, mineral interest or royalty interest burdening title or otherwise having an interest merely a security for the performance of an obligation; and 2.16.2 as to an executory contract for conveyance until fee simple legal title is conveyed of record to the purchaser and notwithstanding any provisions in the contract to the contrary (i) the seller if the contract or notice thereof is not filed of record in which case the purchaser will be deemed a lessee and not an Owner or Member for purposes of the Governing Documents, and (ii) the seller and the purchaser if the contract is filed of record in which case the seller and purchaser are deemed to be joint Owners ("filed of record" herein meaning filed in the Official Public Records of Real Property of Montgomery County, Texas).

SECTION 2.17 "Person" means any natural person, as well as a corporation, joint venture, partnership (general or limited), association, trust, or other entity.

SECTION 2.18 "Plat means the initial map or plat of the Subdivision as described in Section 1.01 which initial map or plat is sometimes herein referred to as the "Initial Plat", all maps

other entity.

SECTION 2.18 "Plat means the initial map or plat of the Subdivision as described in Section 1.01 which initial map or plat is sometimes herein referred to as the "Initial Plat", all maps or plats of properties made a part of the Subdivision as provided in Article I, if any, hereafter filed in the Map Records of Montgomery County, Texas, and all lawful modifications, amendments and/or replats of any of the foregoing.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 10 SECTION 2.19 "Prevailing Community Standards" means those standards of aesthetics, environment, appearance, architectural design and style, maintenance, conduct and usage generally prevailing in the Subdivision as reasonably determined by the Board or ACC at any given pertinent time and from time to time, including as to each particular Regulated Modification and each other matter or circumstance considered as of the date of the evaluation (i) prevailing standards as to harmony and compatibility with surrounding aesthetics, appearance and patterns of maintenance and use, harmony and compatibility with surrounding buildings, structures and other improvements, and harmony and compatibility with surrounding grades, topography, finished ground elevations, locations, colors, finishes, styles, workmanship, type and quality of materials and designs, and (ii) compliance with this Declaration and other applicable Governing Documents, and with applicable governmental laws, ordinances and regulations.

SECTION 2.20 "Regulated Modification" means (without implication that any particular matter is permitted or prohibited by this Declaration and without limitation as to Article IV hereof)

regulations.

SECTION 2.20 "Regulated Modification" means (without implication that any particular matter is permitted or prohibited by this Declaration and without limitation as to Article IV hereof) the commencement, placement, construction, reconstruction or erection of; or modification, alteration, or addition to, any building, structure, improvement, thing or device, and any usage thereof: whether temporary or permanent, which may affect, modify or alter the aesthetics, environment, architectural scheme, appearance or standards, patterns of usage, or grades or _ topography generally prevailing in the Subdivision as of the date of establishment of the Regulated Modification, excluding any such matters and activities conducted wholly within the interior of a residence which do not affect the exterior appearance of the residence or an adjacent residence, structure or improvements, and excluding any such matters or activities conducted by the Association as to Community Properties, but including by way of illustration and not of limitation: 2.20.1 any building, garage, porch, shed, greenhouse, bathhouse, coop or cage, covered or uncovered patio, swimming pool, clothes lines, radio or television antenna, satellite dish, microwave and similar systems, fence, wall or other screening device, curbing, paving, wall, trees,. shrubbery and any other landscaping, fountains, statuary, lighting fixtures, signs or signboard, or any temporary or permanent living quarters (including any mobile home) or any other temporary or permanent modification or alteration; 2.20.2 any material change to the design or appearance of the exterior of any residence or garage upon any Lot, or to any other permitted outbuilding, including without

ent modification or alteration; 2.20.2 any material change to the design or appearance of the exterior of any residence or garage upon any Lot, or to any other permitted outbuilding, including without limitation any change in the style, color, quality, grade or appearance of exterior brick, siding shingles or other roof materials, and windows and doors (including garage doors, fixtures and fenestrations); 2.20.3. ° any demolition of a residence or garage upon any Lot, the approval of which may be conditioned upon reconstruction in accordance with approval of plans and specification prior to demolition; 2.20.4 any change to the interior of a residence, garage and any other permitted outbuilding which in the sole opinion of the ACC materially affects the exterior appearance thereof; including without limitation of the foregoing any demolition of the single-family residence or garage located on any Lot; 2.20.5 an excavation, fill, ditch, diversion, dam, drainage system or other thing or DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 11 device which affects or alters the flow of surface or subsurface waters to, from, upon or across any Lot or any other portion of the Subdivision, or which affects or alters the flow of any waters in any natural or artificial stream, wash or drainage channel to, from, upon, under or across any Lot or any other portion of the Subdivision; 2.20.6 any change in the grade of any Lot or any other portion of the Subdivision, and any similar disturbance to the surface of the land within the Subdivision; 2.20.7 any erosion control system or devices permitted or required as to any Lot or any other portion of the Subdivision; and

any similar disturbance to the surface of the land within the Subdivision; 2.20.7 any erosion control system or devices permitted or required as to any Lot or any other portion of the Subdivision; and 2.20.8 any other building, structure, improvement, thing or device, and any activities related thereto and any usage thereat; as specified &om time to time by applicable Architectural Guidelines, whether temporary or permanent, which may affect, modify or alter the aesthetics, environment, architectural scheme, appearance or standards, patterns of usage, or grades or topography generally prevailing in the Subdivision.

SECTION 2.21 "Related Parties" means and applies as follows: 2.21.1 Owners and Tenants. Tenants of each Owner are Related Parties of that Owner, and with respect to each such Owner and each such tenant, Related Parties of each include (i) their respective family and other household members (including in particular but without limitation all children and other dependents), (ii) their respective guests, invitees, servants, agents, representatives and employees, and (iii) all other Persons over which each has a right of control or under the circumstances could exercise or obtain a right of control.

2.21.2 Association, ACC and Declarant. Related Parties of the Association, ACC and Declarant include their respective officers, directors, partners, co-ventures’, committee members, servants, agents, representatives and employees regarding all acts or omissions related to any of the foregoing representative capacities SECTION 2.22 "Rules and Regulations" means the policies and procedures from time to time adopted by the Board of Directors regulating the maintenance, operation, use or occupancy

esentative capacities SECTION 2.22 "Rules and Regulations" means the policies and procedures from time to time adopted by the Board of Directors regulating the maintenance, operation, use or occupancy of the Subdivision, including the Lots and Community Properties, in accordance with Article VII hereof: regardless of nomenclature or manner of designation, and may include Architectural Guidelines.

SECTION 2.23 "Subdivision" means the residential community as more particularly described in Section 1.01 hereof: and any other real property subjected to this Declaration as herein provided from time to time.

SECTION 2.24 "Subdivision Facilities" means all facilities and services built, installed, maintained, operated or provided by the Association for the general benefit of the Subdivision, INCLUDING WITHOUT LIMITATION BUT WITHOUT ANY REPRESENTATION, WARRANTY OR IMPLICATION WHATSOEVER THAT ANY PARTICULAR FACILITIES OR SERVICES WILL BE BUILT, INSTALLED, MAINTAINED, OPERATED OR PROVIDED, AND SUBJECT TO THE RIGHT OF DECLARANT DURING THE DEVELOPMENT PERIOD, AND OF THE BOARD THEREAFTER, FROM TIME TO TIME DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 12 AND AT ANY TIME TO ADD TO, MODIFY OR DISCONTINUE ANY PARTICULAR FACILITY OR SERVICE: 2.24.1 all Subdivision entry and other identification monuments, if any; 2.24.2 all perimeters fencing enclosing the Subdivision; 2.24.3 any patrol or security access limiting type services, structures or devices specifically obtained and maintained by the Association for such purposes, including without limitation any controlled access gates, guardhouses and related structures or devices; 2.24.4 any garbage or recycling collection, cable or satellite television, utilities or

rposes, including without limitation any controlled access gates, guardhouses and related structures or devices; 2.24.4 any garbage or recycling collection, cable or satellite television, utilities or other services provided by or through the Association, and any structures or devices related thereto; and 2.24.5 any common drainage facilities as provided in Section 8.04.8; and 2.24.6 —_ any other facilities or services as from time to time so designated by Declarant or the Board.

SECTION 2.25 "Townhome" means each attached single-family residence which is contained within a residential building which contains two or more single family residences and each detached single family residence that do not share any Common Walls with any residence.

Said detached single stand alone single family residence (the “Detached Residence(s)”) shall be located on Block 3 Lot 1, as well as Block 3, lot 15 and Block 4 Lot 11 of the Plat if later annexed and made subject to this Declaration as permitted herein .

Article III Waterway Landing At East Shore Home Owner Association, Inc.

SECTION 3.01 Organization. The Association will be organized and formed as a non- profit corporation under the laws of the State of Texas. The Association has full power, authority and standing to enforce all provisions of the Governing Documents. The principal purposes of the Association are the collection, expenditure and management of the funds and financial affairs of the Association, enforcement of all provisions of the Governing Documents, providing for maintenance, preservation and architectural control within the Subdivision, the providing of such Subdivision. Facilities as herein permitted or required, and all other acts and undertakings

iding for maintenance, preservation and architectural control within the Subdivision, the providing of such Subdivision. Facilities as herein permitted or required, and all other acts and undertakings reasonably incident to any of the foregoing or in furtherance thereof as determined in the sole good faith opinions of the Board of Directors or Members.

SECTION 3.02 Board of Directors. The Association acts through a Board of Directors which manages the affairs of the Association as specified in this Declaration, the Bylaws and other applicable Governing Documents. Unless otherwise expressly required by law or other applicable provision of the Governing Documents, the Board of Directors shall exercise and have all rights, powers, authority and responsibilities of the Association. The Board is specifically authorized to compromise and settle any and all claims, demands, liabilities and causes of action whatsoever held by or asserted against the Association upon such terms and conditions as the Board may determine, and the decisions of the Board as to any of the foregoing are final and conclusive.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 13 UNTIL THE DATE OF TRANSFER OF DECLARANT CONTROL AS PROVIDED IN SECTION 11.04, DECLARANT WILL APPOINT ALL MEMBERS OF THE BOARD OF DIRECTORS, AND IS ENTITLED TO REMOVE AND REPLACE ANY OF SAME, AND IN ALL OTHER RESPECTS TO EXERCISE ALL RIGHTS AND AUTHORITY OF THE ASSOCIATION AS SET FORTH IN THIS DECLARATION AND ALL OTHER GOVERNING DOCUMENTS.

SECTION 3.03 Membership.

3.03.1 Owners as Members. Every Owner must be and is a Member of the Association, and as such is subject to and shall have such rights, responsibilities and obligations as set forth in

.03 Membership.

3.03.1 Owners as Members. Every Owner must be and is a Member of the Association, and as such is subject to and shall have such rights, responsibilities and obligations as set forth in this Declaration and other applicable Governing Documents. The Association is entitled to rely on the Official Public Records of Real Property of Montgomery County, Texas in determining such status as an Owner, and may require submission to the Board of appropriate certified copies of such records as a condition precedent to recognition of status as an Owner. The foregoing is not intended to include Persons who hold an interest merely as security for the performance of an obligation, and the giving of a security interest shall not terminate any Owner's membership. No Owner, whether one or more Persons, shall have more than one membership per Lot. Memberships shall be appurtenant to and may not be separated from ownership of any Lot, and shall automatically pass with the title to the Lot.

3.03.2 When Member Required to Designate Representative; Effect. Each Member which is not a natural person is required to designate one natural person to act on such Member's behalf in accordance with applicable provisions of the Bylaws and as otherwise determined in the sole opinion of the Board. A designation as aforesaid fully authorizes the designated representative to bind the designating party as to all matters. Any such representative may serve as a Director in . accordance with the Bylaws. The foregoing shall not apply to Declarant during the Development Period who may act through any of its officers or employees as Declarant may direct. The provisions of this Section do not apply to Declarant who may act through any of its officers or employees as Declarant may direct.

through any of its officers or employees as Declarant may direct. The provisions of this Section do not apply to Declarant who may act through any of its officers or employees as Declarant may direct.

SECTION 3.04 Voting Rights of Members.

3.04.1 Development Period. During the Development Period, there will be two classes of membership entitled to voting rights in the Association which are as follows: (a) Class A: All Members of the Association other than the Declarant are Class A Members. DURING THE DEVELOPMENT PERIOD, CLASS A MEMBERS HAVE NO VOTING RIGHTS WHATSOEVER EXCEPT AS PROVIDED IN" SECTION 11.04.

(b) Class B: Class B Members are Declarant. DURING THE DEVELOPMENT PERIOD DECLARANT SHALL HAVE ONE VOTE FOR EACH LOT OWNED AND SHALL ADDITIONALLY HAVE ONE "AT LARGE" VOTE.

3.04.2 Post-Development Period. Upon termination of the Development Period, Declarant's one "at large" vote will automatically terminate and any remaining Class B membership will automatically convert to Class A membership. Thereafter there will be only one DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 14 class of voting membership, and the Owner of each Lot, whether one or more, will be entitled to one vote on each matter coming before the membership.

3.04.3 Multiple Owners. When more than one Person holds an ownership interest in a Lot, all such Persons are Members, but in no event will they be entitled to more than one vote with respect to each particular Lot owned. The single vote, approve, or consent of such joint Owners must be cast or given in accordance with the decision of a majority, or if such joint Owners cannot reach a majority decision, then none of the joint Owners will be permitted to vote, approve, or

ners must be cast or given in accordance with the decision of a majority, or if such joint Owners cannot reach a majority decision, then none of the joint Owners will be permitted to vote, approve, or consent as to any such matter upon which a majority decision cannot be reached. The vote, approval or consent of any single Owner from among such joint Owners is conclusively presumed to be cast or given in accordance with the decision of the majority of the joint Owners and with their full authority.

3.04.4 Cumulative Voting Prohibited. Cumulative voting is prohibited as to any matter placed before the membership for a vote, including election of Directors.

3.04. 5 Suspension of Voting Rights. Voting rights of any Member may or will be suspended for breach of the Governing Documents as provided herein or in the Bylaws or Articles of Incorporation, including without limitation, suspension as provided in Section 5.08.1.

SECTION 3.05 Inspection by Members of Books and Records. Subject to protection of privileged and confidential communication, rules for inspection and other exclusions as set forth in the Bylaws, every Member of the Association, on written demand stating the purpose of the demand, has the right to examine and copy, in person or by agent, accountant, or attorney, at any reasonable time, for any proper purpose, the books and records of the Association relevant to that purpose, at the expense of the Member.

SECTION 3.06 Limitation of Liability: Indemnification 3.06.1 General. Except for intentional and willful misconduct, knowing violation of the law, or as otherwise required by the Texas Business Organization Code, no officer or Director of the Association is liable to the Association or its Members, and the Association and its Related

of the law, or as otherwise required by the Texas Business Organization Code, no officer or Director of the Association is liable to the Association or its Members, and the Association and its Related Parties are not liable to any Member, for monetary damages or otherwise for: (i) any act or omission of an officer or Director within their official capacity; or (ii) any act or omission by or on behalf of the Association within the scope of its purposes. The Association shall indemnify and keep indemnified, and hold harmless, any current or former officer or Director to the fullest extent necessary to accomplishment of the foregoing and to the fullest extent otherwise allowed by law, and hold any such officer or Director harmless from and against all claims, demands, suits, judgements, court costs, attorney's fees attachments and all other legal action as contemplated thereby. All provisions of this Section 3.06 also apply to all Association Committees and members thereof (current or former), including the Architectural Control Committee.

3.06.2 Security Services. The Association may from time to time engage in activities or provide Subdivision Facilities, including activities, devices or services intended to or which may have the effect of enhancing safety or security, including activities, devices or services limiting or controlling Subdivision access, or providing of patrol services or otherwise monitor activities within the Subdivision (including Community Properties), and may from time to time provide information through newsletters or otherwise regarding same (all such matters and all activities, DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 15

mation through newsletters or otherwise regarding same (all such matters and all activities, DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 15 services or devices of a similar nature or incident thereto herein referred to as, "Security Services").

Without limitation of Section 3.06.1, each Owner and their tenants covenant and agree with respect to any and all Security Services provided directly or indirectly by the Association as follows: (a) (b) (c) (d) (e) SECURITY IS THE SOLE RESPONSIBILITY OF LOCAL LAW ENFORCEMENT AGENCIES AND INDIVIDUAL OWNERS AND THEIR TENANTS, AND THEIR RESPECTIVE RELATED PARTIES.

Security Services may be provided at the sole discretion of the Board of Directors. The providing of any Security Services at any time will in no way prevent the Board from thereafter discontinuing, or from temporarily or permanently modifying, terminating or removing, any Security Services, in _ whole or in part.

Any third-party providers of Security Services are independent contractors, the acts or omissions of which are not imputable to the Association or its Related Parties.

Providing of any Security Services may never be construed as (i) an undertaking by the Association or its Related Parties to provide personal security as to any Owner, tenant or their Related Parties, or as to any other Person, or (ii) a representation or undertaking that any Security Services will be continued, or (iii) a representation, guarantee or warranty that the presence of any Security Service will in any way increase personal safety or prevent personal injury or property damage due to negligence, criminal conduct or any other cause. WITHOUT LIMITATION OF THE FOREGOING, DECLARANT, THE ASSOCIATION AND THEIR

increase personal safety or prevent personal injury or property damage due to negligence, criminal conduct or any other cause. WITHOUT LIMITATION OF THE FOREGOING, DECLARANT, THE ASSOCIATION AND THEIR RELATED PARTIES SHALL NOT HAVE ANY DUTY WHATSOEVER TO WARN, ADVISE OR INFORM ANY OWNER, TENANT OR THEIR RELATED PARTIES AS TO CRIMINAL CONDUCT OF ANY KIND OR AS TO ANY OTHER MATTERS REGARDING OR RELATING TO SECURITY SERVICES, PAST OR PRESENT.

Declarant, the Association and their Related Parties are not liable for, and each Owner, their tenants, and their respective Related Parties, must indemnify, keep indemnified and hold Declarant the Association and their Related Parties harmless at all times from, any injury, loss or damages whatsoever, including without limitation any injury or damages caused by theft, burglary, trespass, assault, vandalism or any other crime, to any Person or property arising, directly or indirectly, from the providing or failure to provide any Security Services, or the discontinuation, modification, disruption, defect, malfunction, operation, repair, replacement or use of any Security Services.

DECLARANT, THE ASSOCIATION AND THEIR RELATED PARTIES, HAVE NO DUTY, OBLIGATION OR RESPONSIBILITY OF ANY KIND WHATSOEVER TO WARN, ADVISE OR IN ANY OTHER MANNER INFORM ANY OWNERS, TENANTS, OR THEIR RELATED PARTIES, OR ANY OTHER RESIDENTS OR OCCUPANTS OF ANY DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 16 LOT OR COMMUNITY PROPERTIES, OR ANY LAW ENFORCEMENT AGENCY, OR ANY OTHER PERSON AS TO ANY ALLEGED, SUSPECTED OR KNOWN CRIMINAL ACTIVITIES OF ANY KIND, CRIMINAL HISTORY OR BACKGROUND OF ANY PERSON, OR CRIMINAL INVESTIGATIONS BY LAW ENFORCEMENT AGENCIES OR BY ANY OTHER PERSON (ALL

AS TO ANY ALLEGED, SUSPECTED OR KNOWN CRIMINAL ACTIVITIES OF ANY KIND, CRIMINAL HISTORY OR BACKGROUND OF ANY PERSON, OR CRIMINAL INVESTIGATIONS BY LAW ENFORCEMENT AGENCIES OR BY ANY OTHER PERSON (ALL SUCH MATTERS, ACTIVITIES AND INVESTIGATIONS HEREIN REFERRED TO AS "CRIMINAL MATTERS"), regardless of whether the Criminal Matters involve the Subdivision, other areas in the vicinity or any other place or lands. The Association may (but has no obligation to) from time to time disclose and/or transmit information concerning Criminal Matters to Owners, tenants, and any other occupants of Lots and/or any Community Properties, to any law enforcement agencies, and to any other Person which the Association's officers, directors, agents, employees and other Related Parties in their sole discretion deem advisable. Each Owner and tenant by acceptance of any right, title or interest in any Lot, and every Owner, tenant and occupant of a Lot or any Community Properties by virtue of such occupancy, hereby consents, on their behalf and on behalf of their respective Related Parties, and on behalf of all other Persons coming upon a Lot or any Community Properties at their invitation, or with their consent or permission, to any such disclosure and/or transmittal of information. Any such disclosure and/or transmittal of information shall in no way be deemed an undertaking to do so in the future, either as to the Criminal Matters then involved or as to any other current or future Criminal Matters. All other provisions of this Section apply to any disclosure and/or transmittal of information, and to any failure to disclose and/or transmit information, concerning Criminal Matters, including in particular but without limitation,

tion apply to any disclosure and/or transmittal of information, and to any failure to disclose and/or transmit information, concerning Criminal Matters, including in particular but without limitation, the provisions of Section 3.06.2(d) regarding the indemnity obligations of Owners, their tenants and their respective Related Parties.

3.06.3 Liability Arising From Conduct of Owners. Each Owner, their tenants, and their respective Related Parties must indemnify and keep indemnified, and hold harmless, Declarant, the Association and their Related Parties from and against all claims, damages, suits, judgments, court costs, attorney's fees, attachments and all other legal actions caused through the willful or negligent act or omission of an Owner, the Owner's tenants, or their respective Related Parties.

3.06.4 Subsequent Statutory Authority. If the Business Organizations Code or any other applicable statute, state or federal, is construed or amended to further eliminate or limit liability or authorizing further indemnification than as permitted or required by this Section 3.06, then liability will be eliminated or limited and right to indemnification will be expanded to the fullest extent permitted by such construction or amendment.

3.06.5 No Impairment. Any repeal, amendment or modification of this Section 3.06 may not adversely affect any rights or protection existing at the time of the amendment.

Article ITV Architectural Control Committee DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 17 SECTION 4.01 Organization: Compensation.

4.01.1 General. There is hereby established an Architectural Control Committee (herein sometimes referred to as the "ACC"). The Board of Directors shall act as the ACC unless an

ization: Compensation.

4.01.1 General. There is hereby established an Architectural Control Committee (herein sometimes referred to as the "ACC"). The Board of Directors shall act as the ACC unless an executive committee is appointed by the Board of Directors to act as the ACC as permitted by the next Section. The act of a majority of the members of the ACC constitutes an act of the ACC; provided, THE ACC MAY FROM TIME TO TIME DESIGNATE ANY ONE OF ITS MEMBERS TO ACT IN ITS STEAD.

4.01.2 ACC Executive Committee. If an executive committee is appointed by the Board of Directors to act as the ACC, then the provisions of this Section apply. Such executive committee must be composed of three or five persons. A majority of such persons must at all times also be Directors, but the remaining persons need not be Directors or Members. All such persons will serve at the discretion of the Board, and all of its decisions are subject to review and modification by the Board except as herein otherwise expressly provided. In the event of the death or resignation of any person serving on the ACC, the Board of Directors shall designate a successor or successors who will have all of the authority and power of his or their predecessor(s). Until such successor has been appointed, the remaining member or members have full authority to exercise all rights, duties and powers of the ACC.

4.01.3 Compensation. No person serving on the ACC is entitled to compensation for | services performed provided, the ACC may employ one or more architects, engineers, attorneys or other consultants, as approved by the Board of Directors, to assist the ACC in carrying out its duties, and the Association shall pay such consultants for services rendered to the ACC. Members

neys or other consultants, as approved by the Board of Directors, to assist the ACC in carrying out its duties, and the Association shall pay such consultants for services rendered to the ACC. Members of the ACC may also be reimbursed for reasonable expenses in such manner and amounts as may be approved by the Board of Directors.

SECTION 4.02 Function and Powers.

4.02.1 Submission of Plans Required. No Regulated Modification may be commenced, constructed, erected, placed, maintained or made upon any Lot or within any part of the Subdivision unless and until complete plans and specifications covering all aspects of the Regulated Modification have been submitted to and approved in writing by the ACC as to compliance with applicable Architectural Review Criteria as set forth in Section 4.03. One complete set of plans and specifications must be submitted with each request for approval. Any plans and specifications to be submitted must specify, as applicable and in such detail and form as the ACC may reasonably require: (a) the location upon the Lot or within the Subdivision where the Regulated Modification will occur or be placed; (b) the dimensions, nature, kind, shape, height, and color scheme of and all materials to be used in connection with the Regulated Modification; (c) appropriate information concerning structural, mechanical, electrical, plumbing, grading, paving, decking and landscaping details; (d) intended uses; and DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 18 (e) such other information, plans or specifications as may from time to time be required by applicable Architectural Guidelines, or in specific instances as may be requested or required by the ACC, which in the sole opinion of the

ans or specifications as may from time to time be required by applicable Architectural Guidelines, or in specific instances as may be requested or required by the ACC, which in the sole opinion of the ACC is reasonably necessary to fairly and fully evaluate all aspects of the proposed Regulated Modification, — 4.02.2 Architectural Guidelines. The ACC may, from time to time, adopt, modify and delete such reasonable Architectural Guidelines applicable to the Subdivision, including Lots and Community Properties, as it deems appropriate to maintain or reasonably enhance Prevailing Community Standards of the Subdivision at the time of adoption. Such authority includes, but is not limited to, the right to specify: (a) specific procedural guidelines for submission of requests for, and plans, specifications and other information necessary to obtain, ACC approval, and procedural requirements for the conducting of all activities necessary to accomplish same; (b) the amount and manner of payment of any fees or charges reasonably anticipated to cover administrative costs, fees for architectural, engineering, construction, legal or other expert advice or consultation, and all other costs and expenses in connection with review and evaluation of an application (such costs and expenses herein referred to as the "Architectural Review Fee"); (c) specific types of Regulated Modifications which may be commenced, constructed, erected or maintained upon any Lot or anywhere within the Subdivision, as well as specific types of Regulated Modifications which will not be permitted upon any Lot or within the Subdivision; (d) a limited number of acceptable exterior materials and finishes that may be utilized in construction or repair of Regulated Modifications;

l not be permitted upon any Lot or within the Subdivision; (d) a limited number of acceptable exterior materials and finishes that may be utilized in construction or repair of Regulated Modifications; (e) minimum setbacks (except that minimum setbacks as shown on the Plat conflict with Architectural Guidelines); (f) the location, height, and extent of fences, walls or other screening devices, walk, decks, patios or courtyards; (g) the orientation of structures and landscaping with respect to streets, walks.

driveways and structures on adjacent properties; and (h) in general, all requirements reasonably deemed necessary to maximize compliance with Architectural Review Criteria as set forth in Section 4.03.

4.02.3 Manner and Effect of Adoption of Architectural Guidelines.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 19 (a) No prior notice of any kind to any Owner or any other Person need be given as to adoption or amendment of Architectural Guidelines. The ACC shall provide applicable Architectural Guidelines to Owners upon request.

(b) Architectural Guidelines shall be of equal dignity with, and shall be enforceable in the same manner as, the provisions of this Declaration, provided: (a) such Architectural Guidelines shall not be deemed a waiver, modification, or repeal of any of the provisions of.this Declaration; and (b) such Architectural Guidelines shall not be enacted retroactively except that all repairs, modifications or maintenance performed subsequent to adoption shall be performed in such manner as to bring the Regulated Modification, so far as practicable, in compliance with all then applicable Architectural Guidelines.

nance performed subsequent to adoption shall be performed in such manner as to bring the Regulated Modification, so far as practicable, in compliance with all then applicable Architectural Guidelines.

4.02.4 Variances. The Board, by vote of two-thirds (2/3rds) of all members of the Board, may grant specific variances to Architectural Guidelines and to the architectural and use restrictions set forth in Articles VII and VIII of this Declaration as herein provided. A variance may be granted only with respect to specific instances upon written request therefor, is not binding.

with respect to any other request for a variance whether or not similar in nature, and does not constitute a waiver, modification or repeal of any of the provisions of this Declaration or other Governing Documents except for the limited purpose of and to the extent of the specific variance expressly granted. A variance may be granted only upon specific findings (a) that the variance is necessary due to unusual circumstances which are reasonably beyond the control of the applicant to mitigate or rectify, or in other circumstances, such as due to topography or natural obstructions, as to which the ACC determines a variance will result in a material enhancement to the applicant's Lot and to neighboring Lots and/or the Subdivision, and (b) that the granting of a specific variance will not materially and adversely affect the architectural, aesthetic or environmental integrity of the Subdivision or the scheme of development therein. WHETHER OR NOT SO STATED IN A VARIANCE AND NOTWITHSTANDING ANY THING IN A VARIANCE TO THE CONTRARY, A VARIANCE SHALL EXTEND ONLY FOR THE PERIOD OF TIME DURING WHICH AND TO THE EXTENT THAT THE CIRCUMSTANCES THAT FORMED THE

TED IN A VARIANCE AND NOTWITHSTANDING ANY THING IN A VARIANCE TO THE CONTRARY, A VARIANCE SHALL EXTEND ONLY FOR THE PERIOD OF TIME DURING WHICH AND TO THE EXTENT THAT THE CIRCUMSTANCES THAT FORMED THE BASIS THEREFOR CONTINUE TO EXIST. THE BOARD RETAINS FULL AUTHORITY AS TO ANY VARIANCE AT ANY TIME TO TERMINATE OR MODIFY SAME IN ACCORDANCE WITH ANY SUCH CHANGE IN CIRCUMSTANCES. The good faith determinations of the ACC that the conditions for granting a variance have or have not been met and as to any change in circumstances as aforesaid are final.

SECTION 4.03 Architectural Review Criteria. The ACC will evaluate all submitted applications for ACC approval on the individual merits of the particular application, and based on évaluation of the compatibility of the proposed Regulated Modification with Prevailing Community Standards as of the date of submission of an application. The ACC must also use reasonable efforts to achieve consistency in the approval or disapproval of specific types of Regulated Modifications. To this end, consideration will be given to (but the ACC is not bound by) similar applications for architectural approval and the decisions and actions of the ACC with regard thereto.

SECTION 4.04 Submission and Response: Failure of ACC to Act: ACC Decisions.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 20 4.04.1 Submission and Response. Applications for ACC approval and requests for variances are deemed submitted to the ACC only upon actual receipt. Lessees shall file applications or requests for variance in the name of their lessors, and shall also join therein. Where more than one Owner applies for approval or a variance, the delivery or mailing of a response to

applications or requests for variance in the name of their lessors, and shall also join therein. Where more than one Owner applies for approval or a variance, the delivery or mailing of a response to any one of the Owners as aforesaid constitutes notice to all such Owners. All responses of the ACC are deemed given when delivered to the applicant or when deposited in the United States mail, with postage pre-paid and properly addressed to the applicant. If the ACC fails to respond to an application for approval within thirty days after receipt of a proper application, then no further compliance with this Article is required regarding the applicable application. If the ACC fails to respond to a request for variance within thirty days after receipt of the request, then the request is automatically denied.

4.04.2 ACC Decisions, The ACC may fully approve any request for eappeoval made pursuant to this Article IV, or the ACC may approve any such request subject to compliance with conditions stated in a conditional approval. A conditional approval is effective only upon full compliance with the stated condition(s). The ACC may disapprove any request for approval for any of the following reasons: (i) failure to comply with any applicable Architectural Review Criteria as set forth in Section 4.03; (ii) lack of sufficient information, plans or specifications as reasonably determined by the ACC to enable the ACC to fairly and fully evaluate the proposed Regulated Modification or the uses thereof; or (iii) failure to include any information, plans or specifications required by applicable Governing Documents, or as may be reasonably requested by the ACC. The ACC shall notify the applicant of its decisions in writing. Except for compliance

plans or specifications required by applicable Governing Documents, or as may be reasonably requested by the ACC. The ACC shall notify the applicant of its decisions in writing. Except for compliance with this Article, no action or omission of the ACC shall otherwise constitute a waiver as to any other provisions of this Declaration or preclude by estoppel or otherwise full enforcement thereof.

‘SECTION 4.05 Implied Conditions of Approval.

4.05.1 Applicability. Unless expressly waived or modified by the ACC in writing and except as otherwise provided as to initial construction of a single-family residence upon a Lot as set forth in Section 1.04 hereof each and every approval or conditional approval by the ACC of a Regulated Modification is subject to all provisions of this Section 4.05 whether or not stated in the approval or conditional approval.

4.05.2 Commencement and Completion of Work. Work on each Regulated Modification must commence within thirty days after ACC approval or conditional approval is given. Upon commencement, the work must be prosecuted diligently to obtain completion of all work as reasonably soon thereafter as possible, and in any event the work must be substantially completed within sixty days. The foregoing sixty-day period will be extended in the event of and only for the duration of delays due to strikes, war, acts of God or other good cause beyond the reasonable control of thé Owner as determined in the sole opinion of the ACC. Section 8.04.2 and not this Section 4.05.2 applies to initial construction of a single-family residence upon a Lot.

4.05.3 Equipment and Materials. No equipment, materials or other things or devices necessary to completion of a Regulated Modification may be placed or stored upon a Lot or within

esidence upon a Lot.

4.05.3 Equipment and Materials. No equipment, materials or other things or devices necessary to completion of a Regulated Modification may be placed or stored upon a Lot or within the Subdivision any longer than necessary prior to, and in no event more than ten days prior to, commencement of the work on the Regulated Modification. All such equipment, materials, things and devices must be placed within the property lines of the affected Lot, and so far as practical must be stored in locations not visible from any street, or from any other Lot or the Community DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 21 Properties. Upon completion of the work on the Regulated Modification, any such equipment, materials, things or devices not incorporated in the Regulated Modification must be promptly removed from the Lot and Subdivision and in any event within five business days. Section 8.04.4 regarding storage of materials and not this Section 4.05.3 applies to initial construction of a residence upon a Lot.

4.05.4 New Construction Materials Required. Only new construction materials may be used in construction of any Regular Modification except as otherwise approved by the ACC (such as the use of used brick).

4.05.5 Drainage. Each Owner is wholly and solely responsible for compliance with the provisions of Section 1.04 regarding drainage, including the obligation to comply with all requests or requirements of the ACC as authorized by said Section, and is liable for all consequences of any failure to comply.

4.05.6 Compliance with Plans. All work on a Regulated Modification must proceed in strict compliance with the application and plans and specifications approved by the

quences of any failure to comply.

4.05.6 Compliance with Plans. All work on a Regulated Modification must proceed in strict compliance with the application and plans and specifications approved by the ACC, all conditions stated by the ACC, if any, and all applicable Governing Documents and governmental rules, regulations and ordinances.

4.05.7 Permit Requirements. Applicants shall be solely responsible for full compliance with all permitting requirements of the County and all other governmental agencies having jurisdiction, and shall apply for and diligently pursue obtaining of all required permits promptly after ACC approval or conditional approval is received. The ACC is expressly authorized to deny approval pending, or condition approval upon, prior compliance with applicable permitting requirements or upon receipt of certification satisfactory to the ACC that no such permitting requirements exist.

4.05.8 Compliance with Laws and Governing Documents. Each applicant is solely responsible for insuring that every Regulated Modification, as proposed and as completed, is in compliance with applicable governmental laws, ordinances and regulations (including building codes, and permit and licensing requirements), and with applicable requirements of the Governing Documents.

SECTION 4.06 Inspection Rights, Upon reasonable notice (oral or written), any member of the ACC or the Board of Directors or their designated representatives may enter upon a Lot without liability for trespass or otherwise for purposes of confirming compliance with any applicable provisions of the Governing Documents regarding a proposed Regulated Modification, the work in progress, and the completed Regulated Modification. Except for gross negligence, willful

h any applicable provisions of the Governing Documents regarding a proposed Regulated Modification, the work in progress, and the completed Regulated Modification. Except for gross negligence, willful misconduct or knowing violation of the law, the Owner of any Lot so inspected by the ACC is not liable for any personal injuries, death or property damage of or to any person or entity performing such inspection.

SECTION 4.07 Records of Architectural Control Committee. The ACC is not required to maintain records of any of its meetings. The ACC must keep and maintain records evidencing the final decision(s) of the ACC regarding all requests for approval and requests for variance for not less than four years. The ACC must also maintain a record of all current Architectural Guidelines, and must provide copies to Owners upon written request and at the Owner's expense.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 22 SECTION 4.08 Liability of Architectural Control Committee. Except as provided in Section 3.06, neither the Association nor the ACC, nor their respective Related Parties are liable to any Owner, the Owner's tenants, the Related Parties of either, or to any other Person for any actions or failure to act or in connection with any approval, conditional approval or disapproval of any application’ for approval or request for variance, including without limitation, mistakes in judgement, negligence, malfeasance, or nonfeasance. No approval or conditional approval of an application or related plans or specifications and no publication of Architectural Guidelines may ever be construed as representing or implying that, or as a covenant, representation, warranty or

f an application or related plans or specifications and no publication of Architectural Guidelines may ever be construed as representing or implying that, or as a covenant, representation, warranty or guaranty that if followed, the Regulated Modification will comply with applicable legal requirements, or as to any matters relating to the health, safety, workmanship or suitability for any purpose of the Regulated Modification. The provisions hereof are cumulative of the provisions of Section 3.06.

Article V Maintenance Fund SECTION 5.01 Obligation for Payments to Maintenance Fund.

5.01.1 Establishment of Maintenance Fund. There is hereby established a Maintenance Fund in to which will be paid all assessments as provided for herein. The Board is responsible for the collection, management, control and expenditure of the Maintenance Fund which must be deposited in accounts specifically designated for-the Association as from time to time designated by the Board.

5.01.2 Types and Obligation for Payment of Assessments. Each Owner of a Lot, by acquisition of any rights, title or interest therein or acceptance of an executory contract of conveyance, or a deed or other instrument of conveyance therefore, whether or not so expressed therein, covenants and agrees to pay to the Association regular or annual assessments, special assessments and specific assessments, all as herein set forth.

5.01.3 Purpose of Maintenance Fund. The Maintenance Fund must be used exclusively for the purpose of promoting the recreation, welfare, common benefit and enjoyment of the Owners and occupants of the Subdivision, including the maintenance of all Community Properties (including any maintenance required by the County or other governmental entity), the

and enjoyment of the Owners and occupants of the Subdivision, including the maintenance of all Community Properties (including any maintenance required by the County or other governmental entity), the discharge of all obligations of the Association pursuant to this Declaration and other Governing Documents, and the doing of any other thing necessary or desirable in the opinion of the Board for accomplishment of any of the foregoing, including the establishment and maintenance of reserves for repairs, maintenance, taxes, insurance, and other charges, and the expenditure of funds for the benefit of other properties within the vicinity of the Subdivision if in the judgement of the Board the Subdivision will benefit thereby. The judgement of the Board in establishing any assessments and in the collection, management and expenditure of the Maintenance Fund is final and conclusive.

5.01.4 Personal Obligation: Transferees. In addition to the assessment lien herein established, each assessment is the personal obligation of each Owner of the Lot charged therewith at the time liability for the assessment accrued notwithstanding any subsequent transfer of ownership. Except as provided in Sections 5.01.5 and 5.07.3, each Owner's transferee, whether DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 23 by purchase, gift, devise or otherwise, and whether voluntary or by operation of law, is also jointly and severally liable for payment of all unpaid assessments owed to the Association at the time of transfer without prejudice to the rights of the transferee to recover from the transferor the amounts paid by said transferee.

5.01.5 Statement of Assessments. Any transferee (or prospective transferee upon

er without prejudice to the rights of the transferee to recover from the transferor the amounts paid by said transferee.

5.01.5 Statement of Assessments. Any transferee (or prospective transferee upon presentment of an executed earnest money contract or other writing satisfactory to the Board) shall be entitled to a statement from the Association setting forth all assessments due as of the date of the written request, The request must be in writing, must be addressed to the Association and must be delivered by registered or certified mail, return receipt requested, or by personal delivery with receipt acknowledged in writing. The Board may set a reasonable charge for providing a statement of indebtedness, the payment of which is a condition precedent to the Association's obligation to provide same. Except for fraud or misrepresentation, if the Association fails to respond to a proper written request for a statement of indebtedness within ten business days after receipt of the request by the Association, and upon submission of a properly executed registered or certified mail return receipt or delivery receipt evidencing receipt of the request by the Association, upon transfer the transferee is not liable for, nor shall the Lot transferred be subject to a lien for, any unpaid assessments against the Lot accruing prior to the date of the written request.

SECTION 5.02 Administration of Maintenance Fund.

5.02.1 Assessment of Regular Assessments. Regular assessments accrue (are assessed) on a monthly basis, but are payable as hereafter provided.

5.02.2 Uniform Rates for Regular and Special Assessments. Except as provided in the next subsection regarding Declarant and Builder rates, regular and special assessments on all

as hereafter provided.

5.02.2 Uniform Rates for Regular and Special Assessments. Except as provided in the next subsection regarding Declarant and Builder rates, regular and special assessments on all Lots must be fixed at a uniform rate, and must be determined on a per Lot basis.

5.02.3 Declarant and Builder Rates.

(a) Declarant and TWDC is obligated to pay assessment only as provided in Section 11.08. Declarant and TWDC may also exempt (in whole or in part) any Builder from payment of assessments to the same extent as provided in . Section 11.08 regarding Declarant.

(b) Unless exempted (in whole or in part) as provided in the preceding subsection, each Builder is obligated to pay regular and special assessments at the Construction Period Rate until the first day of the month following termination of the Construction Period. The "Construction Period" begins on the first day of the month following the date of conveyance of the applicable Lot to a Builder and ends on the earlier to occur of (i) the date upon which initial construction of a single-family residence is substantially completed and the residence is ready for occupancy as determined in the sole good faith opinion of Declarant during the Development Period or the ACC thereafter, or (ii) one year after the date of conveyance of the applicable Lot. The "Construction Period Rate" is one-half of the full rate of regular and/or special assessment rate otherwise applicable. Upon termination of the Construction Period, the Owner/Builder shall thereafter DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 24 pay the full rate of assessments. If assessments have been paid in advance upon termination of the Construction Period, the Owner/Builder shall also

ASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 24 pay the full rate of assessments. If assessments have been paid in advance upon termination of the Construction Period, the Owner/Builder shall also then pay any additional assessments due by reason of application of the full trate of assessments prorated from the first day of the month following termination of the Construction Period. Once commenced the Construction Period continues to run to termination as aforesaid irrespective of any intervening conveyance to another Builder, but will terminate in the event of reacquisition by Declarant in which case the then applicable Declarant rate again applies and Declarant may restart the Construction Period by reconveyance thereafter to a Builder.

5.02.4 Application of Payments. All payments made by or on behalf of an Owner for assessments (regular, special or specific) are deemed made upon the date of receipt of the payment by the Association or its designated representative. All payments received, including payments received in consequence of judicial or non-judicial foreclosure, will be applied (i) first to payment of all specific assessments owed to the Association with application to be made in inverse order of the specific assessments listed in Section 5.06.1, (ii) then to payment of all special assessments; and (iii) finally to payment of all regular assessments. Application within each category shall be on a first in, first out basis.

SECTION 5.03 Base Rate and Subsequent Computation of Regular Assessments.

5.03.1 Initial Base Rate of Regular Assessments: Due Dates. The initial full base rate of the regular annual assessment for 2017 per Lot (and continuing during 2017 and thereafter unless and until modified as herein provided) is TWO THOUSAND TWO HUNDRED AND

s. The initial full base rate of the regular annual assessment for 2017 per Lot (and continuing during 2017 and thereafter unless and until modified as herein provided) is TWO THOUSAND TWO HUNDRED AND NO/100 DOLLARS ($2,000.00) per Lot per year. The Board shall have the right to require regular annual assessments be paid semi-annually, quarterly or monthly, in advance (instead of annually).

If the Board does so, the semi-annual, quarterly or monthly installments of regular annual assessments, as the case may be, shall be rounded upward to the next dollar, and the regular annual assessment shall be automatically adjusted upward by the amount of such rounding. UNLESS AND UNTIL OTHERWISE DETERMINED BY THE BOARD AS AFORESAID, THE FULL AMOUNT OF REGULAR ANNUAL ASSESSMENTS SHALL BE DUE AND PAYABLE ANNUALLY, IN ADVANCE, ON THE FIRST DAY OF JANUARY OF EACH CALENDAR YEAR.

5.03.2 Subsequent Computation of Regular Assessments. The annual rate of regular assessment per Lot as specified by Section 5.03.1 may be adjusted from time to time as follows: ; (a) The Board shall adopt a budget at least annually to determine sums necessary and adequate to provide for the expenses of the Association for the succeeding twelve-month period (including funding of capital, contingency and other reserves). The Board shall set the annual rate of regular assessments based on the budget, and determine whether same will be payable annually, semi-annually, quarterly or monthly. At least thirty days written notice of such determinations must be given to Owners of all Lots if any change is made as to the due dates or amount of the annual rate of regular assessment. THE FOREGOING NOTICE REQUIREMENT DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 25

e dates or amount of the annual rate of regular assessment. THE FOREGOING NOTICE REQUIREMENT DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 25 DOES NOT APPLY DURING ALL PERIODS OF TIME DURING WHICH A DELINQUENT ASSESSMENT ACCOUNT HAS BEEN TURNED OVER TO AN ATTORNEY FOR PROCEEDINGS TO COLLECT SAME.

(b) Any change in the amount of the annual rate of regular assessment may be disapproved at a special meeting of the Members to be called upon the written and signed petition of the Owners of not less than one-third of the Lots then contained in the Subdivision and the vote to disapprove of the Owners of at least two-thirds of the Lots then contained in the Subdivision voting in person or by proxy at the special meeting. The petition to disapprove must be submitted to the Association not later than the thirtieth day after the date of the notice to Owners given as required by Section 5.03.1(a). If a petition to disapprove is properly submitted, the Board shall call and conduct the special meeting within sixty days after the date of the notice. Notice of the results of the special meeting must be given to Owners of all Lots not later than the thirtieth day after the date of the special meeting. NOTWITHSTANDING FILING OF A PETITION TO DISAPPROVE AS AFORESAID, ALL OWNERS MUST NONETHELESS PAY ASSESSMENTS IN ACCORDANCE WITH THE NOTICE GIVEN UNDER SECTION 5.03.2(a).

(c) _ A petition to disapprove fails if either the Owners of two-thirds of the Lots then contained in the Subdivision do not approve the petition or a quorum is not obtained at the applicable special meeting in person or by proxy. Ifa petition to disapprove is approved, the amount of the annual rate of regular

vision do not approve the petition or a quorum is not obtained at the applicable special meeting in person or by proxy. Ifa petition to disapprove is approved, the amount of the annual rate of regular assessment in effect immediately prior to giving of the notice required by Section 5.03.2(a) will continue in effect; and in such event the notice of results of the special meeting must advise as to any refund or charge, in accordance with the change in the amount of the annual rate of regular assessment disapproved by Owners, Any such refund or charge is due and payable, without interest, not later than the thirtieth day after the date of the notice setting forth same; provided, in lieu of payment as aforesaid, any refund may be made by credit of same against any delinquent assessments then due or as an advance payment of future assessments.

SECTION 5.04 No Waiver or Release. Notwithstanding anything to the contrary herein, the omission or failure for any reason of the Board to determine an annual rate of regular assessment or to mail or deliver a notice of an annual rate of regular assessment. or due date for payment thereof does not constitute a waiver, modification or release of an Owner's obligation to pay assessments as otherwise herein provided.

SECTION 5.05 Special Assessments. In addition to the other assessments authorized herein, including other special assessments authorized by the Declaration, the Board may levy special assessments at any time during each fiscal year for purposes of defraying, in whole or in part, any expenses not anticipated by the budget then in effect, or to replace part or all of any contingency, capital or other reserve fund. SO LONG AS THE TOTAL AMOUNT OF SPECIAL ASSESSMENTS IN ANY ONE FISCAL YEAR ALLOCABLE TO EACH LOT

the budget then in effect, or to replace part or all of any contingency, capital or other reserve fund. SO LONG AS THE TOTAL AMOUNT OF SPECIAL ASSESSMENTS IN ANY ONE FISCAL YEAR ALLOCABLE TO EACH LOT DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 26 DOES NOT EXCEED SIXTY PERCENT (60%) OF THE AMOUNT OF THE REGULAR ANNUAL ASSESSMENT THEN IN EFFECT, THE BOARD MAY IMPOSE THE SPECIAL ASSESSMENT WITHOUT VOTE OR APPROVAL OF ANY OWNER; PROVIDED, AT LEAST SIXTY DAYS WRITTEN NOTICE MUST BE GIVEN TO THE OWNERS OF ALL LOTS OF ANY SUCH SPECIAL ASSESSMENT, AND THE OWNERS MAY DISAPPROVE SAME IN THE MANNER PROVIDED IN SECTION 5.03.1 FOR DISAPPROVAL OF A CHANGE IN THE ANNUAL RATE OF REGULAR ASSESSMENT. Special assessments allocable to each Lot exceeding the foregoing limitation will be effective only if approved by the Owners of a majority of the Lots then contained within the Subdivision. The approval may be obtained in any manner as provided in Section 12.02.3 for approval of an amendment of this Declaration. Special assessments are payable as determined by the Board, and the Board may permit special assessments to be paid in installments extending beyond the fiscal year in which the special assessment is imposed.

SECTION 5.06 Specific Assessments.

5.06.1 Types. Specific assessments must be assessed against individual Lots and the Owner(s) thereafter at the time liability for same accrues as follows: (a) Utility or Other Special Services Assessments, Assessments for water, and for other utilities and/or services provided by the Association, if any, shall be separately and specifically assessed to each Lot and to the Owner of each such Lot as hereafter provides.

water, and for other utilities and/or services provided by the Association, if any, shall be separately and specifically assessed to each Lot and to the Owner of each such Lot as hereafter provides.

(b) Interest. Interest compounded monthly from the due date at the rate of the lesser of eighteen percent (18%) per annum or the maximum legal rate will be charged on all delinquent assessments, regular, special or specific, which are not paid in full within thirty days after the due date.

(c) Late Charges. A late charge in the amount of FIFTY DOLLARS ($50.00), or such other reasonable amount as from time to time determined by the Board, is hereby imposed as to any regular, special or specific assessment which is not paid in full within thirty days after payment of same is due.

(d) Compliance Costs, All expenses reasonably attributable to or incurred by reason of a’ breach or violation of or to obtain compliance with any provisions of this Declaration or other Governing Documents must be assessed against the Owner who occasioned the incurrence of such expenses, including reasonable attorney's fees whether incurred prior to, duting the pendency of or after successful completion of any actions in a court of competent jurisdiction. The foregoing shall include, without limitation, all costs, expenses and reasonable attorney’s fees incurred in connection with the judicial or non-judicial foreclosure of the Association's assessment lien, including prosecution or defense of any claims or actions relating to any such foreclosure proceedings.

(e) Foreclosure of Assessment Lien. In the event of foreclosure of the Association's assessment lien as herein provided, the Owner is required to

actions relating to any such foreclosure proceedings.

(e) Foreclosure of Assessment Lien. In the event of foreclosure of the Association's assessment lien as herein provided, the Owner is required to DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 27 pay to the Association a reasonable rental as determined by the Board for the use of the Lot and improvements thereon during the period of foreclosure, and the Board at its election is entitled to a receiver to collect same. The "period of foreclosure" commences on the date of posting for foreclosure in the event of non-judicial foreclosure, or on the date of entry of judgment granting foreclosure in the event of judicial foreclosure. The "period of foreclosure" continues through the first day of the month following the date of acquisition of actual possession by the purchaser at the foreclosure sale.

(f) Other Obligations (Including Fines and Transfer and ACC Fees). All other monetary obligations established by or pursuant to this Declaration or other Governing Documents which are intended to apply to one or several but not all Lots must be assessed against the applicable Owner(s). Such charges _ may include without limitation reasonable charges for: (i) providing a statement of assessments or indebtedness; (ii) providing of a resale certificate; (iii) transfer fees to reflect changes of ownership, tenancy or occupancy on the records of the Association; (iv) fines for any violation of any provisions of this Declaration or other Governing Documents; (v) charges for processing of applications for architectural approval, - including as provided in Section 4.02.1(b); (vi) admission or usage fees applicable to Community Properties; and

ing Documents; (v) charges for processing of applications for architectural approval, - including as provided in Section 4.02.1(b); (vi) admission or usage fees applicable to Community Properties; and (vii) any other charges otherwise permitted or authorized by law, including without limitation as permitted or authorized by Chapter 204 of the Texas Property Code.

Except for fines, the Board may from time to time contract with Managing Agents to provide any of the services and/or to perform any of the functions associated with any of the foregoing charges, and in connection therewith (but subject to authority of the Board to waive any specific assessment as herein provided) may by contract or resolution assign to such Managing Agent the right to set the amount of and to receive payment of the applicable charge. The right and authority to set the amount of and receive payment of charges for statements of assessment or indebtedness and transfer fees as aforesaid is deemed to be assigned by virtue of contracting with a Managing Agent to provide the associated functions and services for so long as the applicable contract remains in effect unless the applicable contract expressly provides otherwise, subject, however, to the continuing right of the Board to waive or set aside any such charge as the Board deems appropriate.

All other permitted charges listed above may be adopted, set, imposed, amended and/or repealed by resolution duly adopted by the Board of Directors, regardless of whether such charges are incorporated in Rules and Regulations and without notice of any kind to any Owner or any other DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 28

corporated in Rules and Regulations and without notice of any kind to any Owner or any other DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 28 Person. Fines and admission or usage fees must be adopted by adoption of appropriate Rules and Regulations.

(g) As Approved by Owners. The Owners of a majority of the Lots may approve any other specific assessments in the same manner as provided in Section 12.02.3 for approval of an amendment of this Declaration.

5.06.2 Utility or Other Special Services Assessments, In addition to any other assessments due and payable as herein provided, utility or other special services assessments (such as, for example, for water, cable or satellite television services) may be approved by Declarant during the Development Period, and may be approved thereafter by the Owners by majority vote at any special meeting of members called for such purpose. NOTICE OF APPROVAL OF ANY SUCH — ASSESSMENT MUST BE FILED IN THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF MONTGOMERY COUNTY, TEXAS. If so approved all Owners shall be bound by the terms of all contracts entered by the Association pursuant to such approval.

5.06.3 Payment; Waiver. Specific assessments are due and payable immediately upon the occurrence of the event giving rise to liability for payment of same. Failure of the Association to impose or collect any specific assessment is not grounds for any action against the Association, or any Director, officer, agent or employee thereat; and does not constitute a waiver of the Association's right to exercise its authority to collect any specific assessments in the future. For good cause shown as determined in the sole opinion of the Board, the Board may waive, wholly

of the Association's right to exercise its authority to collect any specific assessments in the future. For good cause shown as determined in the sole opinion of the Board, the Board may waive, wholly or partially, imposition of any specific assessment; provided, any such waiver is conditioned upon payment in full of all remaining monetary obligations then owed to the Association or receipt of written commitment that same will be paid within a specified period of time.

SECTION 5.07 _ Lien for Assessments.

5.07.1 Establishment of Lien. All sums assessed against any Lot pursuant to this Declaration, whether by regular, special or specific assessment as provided herein, are secured by a continuing lien on such Lot in favor of the Association.

5.07.2 Perfection of Lien. The recordation of this Declaration constitutes record notice and perfection of the Association's continuing lien, effective from the date of recordation of this Declaration. No further recordation of a claim of lien or other notice of any type or kind whatsoever is required to establish or perfect such lien. To further evidence such lien, the Association may, but is not required to, prepare and file in the Official Public Records of Real Property of Montgomery County, Texas, written notice of default in payment of assessments in such form as the Board may direct.

5.07.3 Priority of Lien. The Association's continuing lien is superior to all other liens or encumbrances on each Lot except: (a) alien for real property taxes and other governmental assessments or charges on a Lot (a "Tax Lien") to the extent so required by law but not otherwise (it being the intent hereof that the Association's continuing lien is superior to any Tax Lien if permitted by law, including Section 32.05 of the Texas Tax Code);

so required by law but not otherwise (it being the intent hereof that the Association's continuing lien is superior to any Tax Lien if permitted by law, including Section 32.05 of the Texas Tax Code); DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 29 (b) — any lien securing payment of purchase money for a Lot and/or for work and materials used in constructing improvements on a Lot (i) as to and only as to assessments (regular, special or specific) the obligation for payment of which accrues from or after the applicable lien is duly recorded in the Official Public Records of Real Property of Montgomery County, Texas, and (ii) as to and only to the extent of unpaid sums secured by any such lien; (c) an extension of credit (commonly known as a home equity loan) made in accordance with and pursuant to Section 50(aX6), Article XVI, of the Texas Constitution, as amended; (d) a reverse mortgage made in accordance with and pursuant to Section _50(a)(7), Article XVI, of the Texas Constitution, as amended; and (e) such other mortgages, deeds of trust, liens or other encumbrances to which the Board may from time to time by written agreement specifically and expressly agree, subject to such terms and conditions as set forth in the applicable written agreement.

5.07.4 Other Liens. Except as provided in Section 5.07.3 or as otherwise expressly provided herein, all other Persons acquiring liens or encumbrances on any Lot are deemed to consent that such liens or encumbrances are inferior to the Association's lien for assessments, as provided herein, whether or not consent is specifically set forth in, and notwithstanding any contrary provisions in, any instruments creating such liens or encumbrances.

on's lien for assessments, as provided herein, whether or not consent is specifically set forth in, and notwithstanding any contrary provisions in, any instruments creating such liens or encumbrances.

SECTION 5.08 Effect of Nonpayment of Assessments.

5.08.1 Delinquency Date. Any assessments, regular, special or specific, which are not paid by the due date are delinquent as of midnight, of the due date.

5.08.2 Automatic Remedies. Except to the extent otherwise expressly agreed in writing by the Board, if any assessments are not paid by the due date, then: (a) late charges, interest from the due date, and all compliance costs (including reasonable attorney's fees), all as set forth in Section 5.06, shall be added to and included in the amount of such assessment; and (b) all voting rights of the Owner, and all rights to use of all recreational facilities, if any, by the Owner, their tenants and their respective Related Parties, will be automatically suspended until all assessments (including all specific assessments) are paid in full.

5.08.3 Elective Remedies After Notice. If any assessments are not paid within thirty days after the due date, then the Association may elect to exercise any or all of the following remedies without prejudice to any other rights or remedies, provided that notice and opportunity to be heard is first given: DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 30 (a) Acceleration of Assessments. The Association may accelerate, through the end of the year in which notice of default is given and for an additional twelve-month period thereafter, all regular assessments, and any installments for special or specific assessments due or to become due during

in which notice of default is given and for an additional twelve-month period thereafter, all regular assessments, and any installments for special or specific assessments due or to become due during said period. All such accelerated assessments are deemed to be specific assessments as to the applicable Lot and Owner thereof.

(b) — Suspension of Services. In addition to automatic suspension of rights to use of recreational facilities as above provided, the Association may suspend until all assessments (including all specific assessments) are paid in full, all other rights of the delinquent Owner, the Owner's tenants, and the Related Parties of either, tothe usage of any and all other Community Properties and/or Subdivision Facilities, (c) Collection of Rents. The Association may impound all rental income of the defaulting Owner as to the Lot as to which assessments are delinquent, and may apply the impounded rents to payment of delinquent assessments (regular, special and specific) as herein provided. In the event of impoundment of rents, the affected Owner's tenant must pay all rentals ' coming due after notice is given of the impoundment to the tenant until otherwise notified in writing by the Association. In the event of impoundment of rents the Association will continue to collect the rents and apply same to payment of assessments until all delinquent assessments (regular, utility, special or specific, and including accelerated assessments, if any) are paid in full. After the Association is paid, it will notify the affected Owner and their tenant of such payment and at such time remit any surplus in collected rents to the affected Owner, without interest.

5.08.4 Action for Debt: Foreclosure.

(a) Each Owner, by acquisition of any Lot within the Subdivision or

and at such time remit any surplus in collected rents to the affected Owner, without interest.

5.08.4 Action for Debt: Foreclosure.

(a) Each Owner, by acquisition of any Lot within the Subdivision or any right, title or interest therein, expressly grants to and vests in the Association (i) the right and power to bring all actions against each Owner, personally for the collection of all delinquent assessments as a debt; (ii) the right and power to foreclose the Association's continuing lien for assessments by all methods available for the enforcement of a mortgage, deed of trust or any other contractual lien, including foreclosure by an action brought in the name of the Association either judicially or non-judicially by power of sale; and (iii) a continuing power of sale in connection with the non-judicial foreclosure of the Association's continuing lien for assessments as herein provided.

(b) The Board or the then President of the Association may appoint, in writing, from time to time, an officer, agent, trustee, or attorney of the Association (the "Trustee") to exercise the power of sale on behalf of and as the agent of the Association, including without limitation to deliver and file the notices required by Section 51.002 SE ————— DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE , Page 31 (d) of the Texas Property Code (as amended), and to conduct the sale and to otherwise comply with said statute. The Board or the then President of the Association may from time to time, remove any such Trustee and appoint a successor or substitute Trustee without further formality than an appointment and designation in writing.

Except as otherwise provided by this Declaration, the Association

y such Trustee and appoint a successor or substitute Trustee without further formality than an appointment and designation in writing.

Except as otherwise provided by this Declaration, the Association will exercise its power of sale pursuant to Section 51.002 of the Texas Property Code (as amended), The Association has the right and power to bid on any Lot at any foreclosure sale, either judicial or non-judicial, and to acquire, hold, lease, mortgage, or convey the same, If directed by the Association to foreclose the Association's continuing lien, Trustee will, either personally or by agent, give notice of the foreclosure sale as required by the Texas Property Code as then in effect, and sell and convey all or part of the applicable property "AS IS", "WHERE IS", and 'WITH ALL FAULTS" to the highest bidder for cash with a general warranty binding the applicable Owner, subject to prior liens and any other matters of record and without representation of warranty, express or implied, by Trustee or the Association. From the proceeds of the sale, Trustee shall pay in order, (i) expenses of foreclosure, including a reasonable commission to Trustee and attorney’s fees, (ii) to the Association the full amount of assessments, interest, late charges, attorney’s fees, and other amounts due to the Association pursuant to this Declaration or other Governing Documents, including without limitation all costs, expenses and reasonable attorneys' fees incurred in the defense of any actions of the trustee hereunder and/or the Association's indemnity obligation as to Trustee regarding same; (iii) any amounts required by law to be paid before payment to Owner; and (iv) pay to Owner any balance. The Association shall indemnify Trustee and hold Trustee harmless from and against all

ng same; (iii) any amounts required by law to be paid before payment to Owner; and (iv) pay to Owner any balance. The Association shall indemnify Trustee and hold Trustee harmless from and against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcement of the Association's lien or otherwise pursuant to this Declaration or other Governing Documents, including all court and other costs, and attorney’s fees incurred by Trustee in defense of any action or proceeding taken against Trustee regarding any of the foregoing.

The filing of suit to collect any sums due hereunder or to foreclose the Association's continuing lien for assessments may never be considered an election so as to preclude exercise of any other rights or remedies, including without limitation foreclosure under power of sale before or after a final judgment. After foreclosure, either judicial or non-judicial, the former Owner and anyone claiming under the former Owner must immediately surrender possession to the purchaser. If not, the former Owner and anyone claiming under the former Owner will be mere tenants at sufferance of the DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 32 purchaser, and the purchaser may obtain immediate possession either pursuant to a judgment for foreclosure or by forcible detainer or eviction to be maintainable by the purchaser.

(e) Each owner, by acquisition of any Lot within the Subdivision or right, title or interest therein, specifically covenants and stipulates as to each and every Trustee's foreclosure sale that the recitals in any appointment or designation of Trustee, any conveyance by the | Trustee and any affidavit of the Trustee or the Association related

to each and every Trustee's foreclosure sale that the recitals in any appointment or designation of Trustee, any conveyance by the | Trustee and any affidavit of the Trustee or the Association related thereto shall be full proof and evidence of the matters therein stated, that all prerequisites of the foreclosure sale shall be presumed to have been performed, and that the foreclosure sale made under the powers herein granted shall be a perpetual bar against the Owner(s) of the Lot(s) sold and their heirs, executors and administrators, successors and assigns, and any Persons whatsoever claiming or to claim thereunder.

5.08.5 Extinguishment of Inferior Liens. Foreclosure of the Association's continuing lien for assessments terminates, extinguishes and forever discharges all inferior or subordinate liens and encumbrances (being all liens and encumbrances except as provided by Section 5.07.3 as to the affected Lot. The foregoing applies to judicial and non-judicial foreclosure of the Association's continuing lien for assessments regardless of whether or not the holder of the inferior or subordinate lien or encumbrance is made a party to or given notice of any proceedings in connection therewith, including without limitation whether or not made a party to or given notice of any judicial foreclosure suit and any other proceedings in connection therewith.

SECTION 5.09 Foreclosure: Bankruptcy.

5.09.1 Effect of Foreclosure or Bankruptcy. The effect of judicial or non-judicial foreclosure of a lien which is superior to the Association's continuing assessment lien under this Declaration, or acceptance of a deed in lieu thereof, and the effect of the discharge of an Owner in bankruptcy is determined as of the date of foreclosure, the date of signing of a deed in lieu which

Declaration, or acceptance of a deed in lieu thereof, and the effect of the discharge of an Owner in bankruptcy is determined as of the date of foreclosure, the date of signing of a deed in lieu which is accepted by the grantee or the date of filing of the bankruptcy in which the Owner is discharged, as the case may be (the "Discharge Date"). Foreclosure or acceptance of a deed in lieu as aforesaid does not relieve the former Owner from the personal obligation for payment of assessments due as of the Discharge Date, but does release the Association's continuing assessment lien as to and only as to assessments due prior to the Discharge Date. The purchaser at foreclosure or grantee under a deed in lieu and an Owner discharged in bankruptcy is also relieved from any obligation for payment of assessments due prior to the Discharge Date, but is obligated to pay all assessments assessed or assessable from and after the Discharge Date and the Association's continuing assessment lien fully secures payment of said assessments. For purposes of the foregoing "assessments assessed or assessable" means (i) prorated regular annual assessments based on the number of months remaining in the calendar year in which the Discharge Date occurs regardless of whether the applicable regular annual assessment is payable in advance annually, semi-annually or quarterly, and (ii) any installments for special or specific assessments so payable which become due after the Discharge Date.

5.09.2 Revival of Assessment Lien; No Merger. The Association's assessment lien DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 33 is automatically revived as to any Owner who reacquires ownership of a Lot within two years after

RATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 33 is automatically revived as to any Owner who reacquires ownership of a Lot within two years after the Discharge Date (as defined in the immediately preceding Section) to the same effect as if none of the events causing the Discharge Date to occur had occurred. The Association's assessment lien is not, by merger or otherwise, extinguished or otherwise effected by acquisition of ownership of a Lot at any time and in any manner by the Association except as otherwise expressly agreed in writing by the Association.

SECTION 5.10 Assessments as Independent Covenant. The obligation to pay assessments is a separate and independent covenant and contractual obligation on the part of each Owner. No offset, credit, waiver, diminution or abatement may be claimed by any Owner to avoid or diminish the obligation for payment of assessments for any reason including, by way of illustration but not limitation (i) by nonuse of any Community Properties or abandonment of a Lot,(ii) by reason of any alleged actions or failure to act by the Association or its officers, Directors, agents or employees, whether or not required under this Declaration or other Governing Documents, (iii) for inconvenience or discomfort arising from the making of repairs or improvements which are the responsibility of the Association, or (iv) by reason of any action taken by the Association, or its” officers, Directors, agents or employees to comply with any law, ordinance, or any order or directive of any governmental authority, or pursuant to any judgment or order of a court of .

competent jurisdiction.

Article VI Maintenance, Insurance, Casualty Losses and Condemnation

r any order or directive of any governmental authority, or pursuant to any judgment or order of a court of .

competent jurisdiction.

Article VI Maintenance, Insurance, Casualty Losses and Condemnation SECTION 6.01 Association Maintenance Responsibilities.

6.01.1 Community Properties: Governmental Agreements and Requirements.

(a) The Association will maintain, repair and replace the Community Properties, including all Subdivision Facilities, and keep same in good repair. This maintenance includes, without limitation, maintenance, repair, and replacement of all landscaping and improvements situated on the Community Properties. , (b) The Association will mow, trim, edge, weed and otherwise generally maintain, repair and replace all lawn and landscape areas upon each Lot which is located outside the footprint of the residence thereon, which is visible from any street or shared common driveway, and which is not located in an area which has been enclosed by fencing or otherwise. Such maintenance shall not include any exotic landscaping installed by any Owner (whether or not approved) or any other maintenance substantially — greater than as generally required throughout the Subdivision. The Association may also maintain such other lawn and landscape areas in such manner as from time to time approved by the Board. Nothing shall be done in any such areas maintained by the Association which may or does increase the cost of maintenance without prior written approval of the Board. The Board may specifically assess any added costs of maintenance, repair or replacement to the responsible Owner(s).

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 34 (c) The Association shall maintain such other properties, real or personal, and

le Owner(s).

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 34 (c) The Association shall maintain such other properties, real or personal, and such other facilities, services and improvements as may be required by governmental authorities, including the County, municipal utility districts, and special tax and development districts or other similar entities, such maintenance to be in accordance with applicable contracts, agreements, ordinances, rules, regulations and decisions of such authorities. Declarant is specifically authorized to enter any such contracts or agreements on behalf of the Association, and to bind the Association thereto, at any time prior to termination of the Development Period, and Declarant may amend this Declaration at any time prior to or after termination of the Development Period to the extent it deems necessary by reason of any such contract or agreement.

(d) The Association may maintain such other areas as may be approved by the Members at any annual or special meeting of Members in such manner and to such extent as the Members determine. Any such undertaking for additional maintenance shall be subject to modification and/or termination at any time as determined by the Members at any subsequent annual or special meeting of members. Notice of any such action must be given to all Owners.

6.01.2 Owner's Liability for Payment of Association Costs. Each Owner, their tenants, and their respective Related Parties are expressly prohibited from doing anything which (i) could or does increase the Association's costs of insurance or result in cancellation or diminution in insurance coverage, (ii) could or does cause damage to or increase costs of maintenance, repair,

could or does increase the Association's costs of insurance or result in cancellation or diminution in insurance coverage, (ii) could or does cause damage to or increase costs of maintenance, repair, replacement, obligations regarding the Community Properties, or any other areas maintained by the Association, or (iii) could or does increase costs of management or operation of any Community Properties (including Subdivision Facilities) or discharge of any other obligations of the Association pursuant to this Declaration or other Governing Documents. Regardless of availability of insurance coverage, the Association may charge to each responsible Owner, as a specific assessment, all increased costs of insurance and all costs of maintenance, repair, replacement, management or operation and all other damages resulting, directly or indirectly, from the acts or omissions of an Owner, their tenants, or their respective Related Parties in violation of the foregoing provisions.

SECTION 6.02 Owner Maintenance Responsibilities.

6.02.1 General; Interior Maintenance. All maintenance of each Lot and all improvements thereon is the sole responsibility of the Owner thereof. Each Owner must maintain their Lot and all improvements thereon at all times in such manner as to obtain and maintain Prevailing Community Standards on a continuing basis as may be more specifically determined by this Declaration and other Governing Documents, including as determined from time to time by duly adopted Architectural Guidelines and Rules and Regulations. Without limitation of the foregoing, each Owner must maintain, at each Owner's sole cost and expense, the interior of the Owner's residence and garage, including all fixtures, equipment, appliances, things and devices located therein.

g, each Owner must maintain, at each Owner's sole cost and expense, the interior of the Owner's residence and garage, including all fixtures, equipment, appliances, things and devices located therein.

MAINTENANCE WHICH AFFECTS THE EXTERIOR APPEARANCE OF A RESIDENCE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 35 OR GARAGE IS SUBJECT TO APPLICABLE PROVISIONS OF ARTICLE IV REGARDING ARCHITECTURAL CONTROL COMMITTEE APPROVAL.

6.02.2 Residences and Other Improvements. Each Owner shall maintain the exterior of each Owner's residence, garage, and all other buildings, structures, walls, recreational equipment and improvements located upon each Owner's Lot, in an attractive, sound and well maintained condition, including proper maintenance and repair as needed of paint, bricks, siding, roofs, rain gutters, downspouts, exterior walls, driveways, parking areas and all other exterior portions of the Owner's residence and garage. Without limitation of the foregoing, each Owner shall provide proper repair and maintenance and when needed as follows (the term "residence" includes garage, as applicable): (a) (b) (c) (d) (e) (f) The exterior paint on each Owner's residence must be maintained so that no portion thereof peels, scales or cracks excessively, and all painted portions remain neat and free of mildew and discoloration. NO CHANGE IN THE EXTERIOR COLOR SCHEME OF A RESIDENCE AS ORIGINALLY CONSTRUCTED IS PERMITTED WITHOUT PRIOR WRITTEN APPROVAL FROM THE ACC.

The windows must be maintained so that no caulking thereon is chipped or cracked and no window panes are cracked or broken.

All exterior doors, including garage doors, must be maintained, repaired, replaced and/or repainted as needed to prevent an unkept or unsightly

ed or cracked and no window panes are cracked or broken.

All exterior doors, including garage doors, must be maintained, repaired, replaced and/or repainted as needed to prevent an unkept or unsightly appearance and such as to maintain same in proper working condition, including replacement as needed of damaged or dented garage door panels and any cracked or broken glass in any door.

The exterior woodwork on each Owner's residence, and all windowsills, door jams and thresholds, framing, hinges, latches and locks, must be maintained so that it remains whole, sound, neat and fully operational.

The roof on each Owner's residence must be maintained to prevent sagging, to prevent leaks, so that all shingles are properly secured, curled or damaged shingles are replaced and no worn areas or holes are permitted to remain, and such that the structural integrity and exterior appearance of the roof is maintained. ALL MAINTENANCE, REPAIR OR REPLACEMENT OF ANY ROOF MUST BE PERFORMED IN SUCH MANNER AS TO MINIMIZE THE VISUAL IMPACT THEREOF IN RELATION TO ADJOINING ROOFS. THE APPEARANCE OF THE ROOF SHALL NOT BE CHANGED BY ANY MAINTENANCE, REPAIR OR REPLACEMENT WITHOUT THE EXPRESS WRITTEN APPROVAL OF THE ACC.

The rain gutters and downspouts on each Owner's residence, if any, must be maintained so that all are properly painted or treated to prevent rust and corrosion, are properly secured to roof, eaves, gables or exterior walls (as the case may be), are maintained without holes, and are promptly repaired DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 36 or replaced if dented or otherwise damaged.

(g) All concrete areas on each Owner's Lot, including sidewalks and driveway,

DITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 36 or replaced if dented or otherwise damaged.

(g) All concrete areas on each Owner's Lot, including sidewalks and driveway, must be maintained so that all cracks are appropriately patched or surfaced as they appear, expansion joints are maintained, repaired or replaced, as needed, and oil, grease and other stains are removed as they appear, and all such areas must be kept free of weeds, grass or other vegetation.

(b) All recreational equipment, which may be installed if and only if approved by the Architectural Control Committee, must be maintained to prevent any unsightly or unkept condition, including for example but without limitation, proper maintenance of swing sets to prevent rust and corrosion, and proper maintenance of basketball goals to prevent rust and corrosion and by replacement as needed of torn or worn nets.

6.02.3 Utilities. The Owner of each Lot must maintain in proper working order, and on a continuing basis, all sanitary sewer lines and facilities, drainage or storm water lines and facilities, water pipelines, water sprinkler system, water meters and related water lines and facilities, electrical and gas lines, meters and facilities, telephone and any other telecommunication lines, devices or facilities, and all other facilities, utilities and services which service each Lot (the "Owner Utilities"), regardless of the location of the Owner Utilities, save and except to the extent maintenance of any Owner Utilities is provided and actually performed by any governmental entity or utility company. Utilities which service more than one Lot must be maintained, repaired and replaced by all of the Owners of the multiple Lots served, pro rata, or in such other proportions as

tity or utility company. Utilities which service more than one Lot must be maintained, repaired and replaced by all of the Owners of the multiple Lots served, pro rata, or in such other proportions as determined by the Board upon written request when the circumstances clearly demonstrate that a different manner of allocation is required.

6.02.4 Landscaping. All grass, shrubbery, trees, flower beds, vegetation and all other landscaping, either natural or artificial, on each Lot which is not maintained by the Association must be maintained at all times in accordance with the seasons as reasonably necessary to obtain and maintain on a consistent and continuing basis Prevailing Community Standards, . including as reasonably necessary to maintain on a consistent and continuing basis a sanitary, healthful and attractive condition and appearance and to eliminate any condition which may create any unsanitary condition or become a harborage for rodents, vermin or other pests.

6.02.5 Disturbance of Community Properties, In the event the performance of any Owner's maintenance responsibilities requires that any portion of the Community Properties be modified, removed or disturbed, then such Owner must first obtain the written consent of the ACC as to same. All such work must be performed, at the option of the Association, either under the supervision of the Association in accordance with plans and specifications approved by the ACC, or by the Association at the reasonable expense of the Owner. If the Association performs the work at the expense of the Owner, the ACC may require a security deposit or advance payment of all of the estimated expenses which the Owner must pay upon demand. Such indebtedness will be added

s the work at the expense of the Owner, the ACC may require a security deposit or advance payment of all of the estimated expenses which the Owner must pay upon demand. Such indebtedness will be added to and become a part of the specific assessment to which such Owner and the Owner's Lot are subject, and is secured by the continuing lien hereby established against such Owner's Lot.

6.02.6 Adjacent or Adjoining Owners. No Owner or their tenant will allow any DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 37 condition to exist or fail or neglect to provide any maintenance which adversely affects any adjoining or adjacent Lot, any Community Properties, or any improvements on any such Lot or the Community Properties.

6.02.7 Dispute Resolution Among Owners.

(a) Any disputes among Owners regarding any rights or responsibilities pursuant to this Article may be submitted in writing to the Board.

The Board also has full authority to direct submission of any dispute . to the Board in writing. After notice and opportunity to be heard, the Board has full authority to resolve all such disputes, and its decisions as to same are final. The Board's authority includes without limitation (i) the right to direct the completion of any maintenance, repair or replacement and to allocate costs. thereof among the disputing Owners, (ii) to authorize one of the disputing Owners or a third party to control the completion of the maintenance, repair or replacement, (iii) to order the disputing Owners to mediation or arbitration through a county dispute resolution center or similar organization or under the Rules of the American Arbitration . Association, and (iv) to allocate among the disputing Owners all

tion or arbitration through a county dispute resolution center or similar organization or under the Rules of the American Arbitration . Association, and (iv) to allocate among the disputing Owners all costs of the maintenance, repair or replacement and all costs (including attorney's fees) incurred in the dispute resolution process.

(b) Each disputing Owner must pay their allocated share of compliance costs (including attorney's fees) within thirty days after receipt of a statement for payment thereof. A final costs statement may. be submitted by the Board or may be submitted by disputing Owners to the Board for resolution as above provided. If any Owner fails to pay their allocated costs as aforesaid, all such costs shall automatically be assessed as a specific assessment against the defaulting Owner as provided in Section 5.06. If one Owner has prepaid allocated costs of another and the prepaid sum is later collected by the Association, that sum (without interest if any) will be reimbursed to the Owner who prepaid same. All rights and remedies under this Section are cumulative.

SECTION 6.03 Right of Entry and Inspection; Owner's Default. In the event the Board or.

ACC determines that (i) an Owner may have or has failed or refused to discharge properly the Owner's maintenance obligations as provided in this Article, or (ii) the need for maintenance, repair, or Replacement which is the responsibility of the Association hereunder may have or has been caused through the willful or negligent act or Omission of an Owner, the Owner's tenants, or their respective Related Parties, then the Association may conduct inspections of any affected Building, the exterior of the residence and all other buildings thereon, and all other structures and

or their respective Related Parties, then the Association may conduct inspections of any affected Building, the exterior of the residence and all other buildings thereon, and all other structures and improvements thereon (a "Compliance Inspection") and/or perform the repair, replacement or maintenance (the "Required Work") in accordance with the following: 6.03.1 If the Board or ACC determines that a violation of this Article may exist, the Board, ACC and their Related Parties may enter a Lot, and all other buildings, structures and DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 38 other improvements thereon, to inspect same and any and all exterior portions of the single-family residence, garage and any other buildings located on the Lot and to conduct a Compliance Inspection, including such investigative work as may be reasonably required to confirm that a violation does or does not exist. Except in the event of an Emergency, the Association must give written notice of the Association's intent to conduct a Compliance Inspection. The notice must state generally the nature of the suspected violations. The notice must also state the name, address and telephone number of a contact with whom to schedule a date and time for the inspection within ten days of the date of the notice (or such longer time as may be stated in the notice), and must state if a date and time is not so scheduled the Compliance Inspection may be conducted at any time within a specified period of time thereafter (which period of time may not exceed a ten day period within thirty days after expiration of the scheduling period).

6.03.2 Except in the event of an Emergency, the Association must give written

after (which period of time may not exceed a ten day period within thirty days after expiration of the scheduling period).

6.03.2 Except in the event of an Emergency, the Association must give written notice of the Association's intent to provide Required Work. The notice must set forth the Required Work with reasonable particularity. The Owner of the Lot to which the notice of Required Work pertains will have ten days within which to complete the Required Work as set forth in this notice, or, in the event the Required Work is not capable of completion within a ten-day period, to commence the Required Work within ten days and to complete same within a reasonable time not to exceed thirty days unless otherwise specifically approved by the Board or ACC. The affected Owner must give written notice of the intent-to commence the work and of the completion of Required Work stating in detail the Required Work intended to be commenced and the Required Work which has been completed. The Board or ACC, through their Related Parties, may also conduct a Compliance Inspection to confirm completion of all Required Work.

Inspection notice, the Association has the right (but not the obligation), through its Related Parties, to enter a Lot and thereupon to conduct the inspection as provided in Section 6.03.1. If any Owner fails fully to comply with a notice as to Required Work, the Association has the right (but not the obligation), through its Related Parties, to enter upon the Lot and to do all things upon the Lot, to the exterior of the residence and all buildings, and as to any structures and other improvements located thereon to commence and complete the Required Work.

e Lot and to do all things upon the Lot, to the exterior of the residence and all buildings, and as to any structures and other improvements located thereon to commence and complete the Required Work.

6.03.4 In case of Emergency the Association has the right (but not the obligation), through its Related Parties, to immediate entry upon a Lot, and the single family residence, garage and all other buildings, structures and other improvements thereon, and to otherwise immediately exercise all rights and remedies authorized by this Section as is reasonably necessary in the sole opinion of the Board or ACC to abate the Emergency, without prior notice. Upon abatement of the Emergency applicable provisions of this Section will then again apply.

6.03.5 The good faith determination by the Board or ACC as to the need for a Compliance Inspection and as to all aspects of Required Work is final and conclusive, and extends to anything or condition as to such Lot or which adversely affects any other Lot or Community Properties. Neither the Association nor any of its Related Parties may be held liable for trespass or any other tort or claim for damages in connection with any actions or failure to act pursuant to this Section. The provisions hereof are cumulative of the provisions of Section 3.06.

6.03.6 All reasonable costs and expenses as to conducting of a Compliance Inspection if a violation is confirmed and in all events as to all aspects of Required Work which is DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 39 performed by the Association pursuant to this Section, as determined in the sole opinion of the Board or ACC, will be added to and become a part of the specific assessment to which such Owner

Page 39 performed by the Association pursuant to this Section, as determined in the sole opinion of the Board or ACC, will be added to and become a part of the specific assessment to which such Owner and the Owner's Lot is subject, and j is secured by the continuing lien hereby established against such Owner's Lot.

6.03.7 The provisions of this Section also apply to any other violations of the Governing Documents as provided in Section 10.02.

SECTION 6.04 Casualty Losses - Association Responsibilities.

6.04.1 Restoration by Association. Except as provided in Section 6.04.4, in the event of damage by fire or other casualty to the Community Properties or regarding any other matters as to which the Association has an obligation to maintain pursuant to this Declaration or other Governing Documents, or if any governmental authority requires any repair, reconstruction or replacement as to same, the Association must perform all repairs, reconstruction or replacement necessitated thereby (the "Casualty Work’’). The Casualty Work must be such as will substantially restore the Community Properties to its condition prior to the casualty or as required by the governmental authority. Any insurance proceeds payable as to the Casualty Work must be paid to the Association.

6.04.2 Board Administration as to Restoration. The Board is hereby irrevocably appointed the agent for each Owner, each Owner's mortgagee, other named insureds and their beneficiaries and for any other holder of a lien or other interest in any Lot or the Community Properties to adjust and settle all claims arising under any insurance policy purchased by the Association, to execute and deliver releases upon payment of claims, and to do all other acts and

mmunity Properties to adjust and settle all claims arising under any insurance policy purchased by the Association, to execute and deliver releases upon payment of claims, and to do all other acts and execute and deliver such other instruments as the Board deems reasonably necessary to submit, adjust, administer and settle any claims, including without limitation all matters regarding appointment of an insurance trustee and administration of any such trust. NO OWNER IS EXEMPTED FROM PAYMENT OF ANY ASSESSMENTS, REGULAR, SPECIAL OR SPECIFIC, DURING ANY PERIOD OF REPAIR, REPLACEMENT OR RECONSTRUCTION.

6.04.3 Specific Assessment for Excess Costs. Subject to Section 6.04.4, the Board shall levy a special assessment to cover all costs of repair, replacement and reconstruction in excess of insurance proceeds and available reserves. THE BOARD SHALL DETERMINE THE AMOUNT OF ANY SUCH SPECIFIC ASSESSMENT AND THE TERMS FOR PAYMENT OF SAME, AND THE LIMITATIONS SET FORTH IN SECTION 5.05 SHALL NOT APPLY TO ANY SUCH SPECIFIC ASSESSMENT.

6.04.4 Owners' Decision Not to Repair, Except for Casualty Work which is required by any governmental authority, the Owners may agree not to perform any Casualty Work.

Any decision not to perform Casualty Work must be submitted to the Owners at a special meeting of Members called for that purpose, and must be approved by affirmative vote of the Owners of not less than ninety percent of the Lots.

SECTION 6.05 Casualty Losses - Owner Responsibilities.

6.05.1 Required Repair or Replacement. Whether or not insured, and unless DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 40 completely razed or removed as permitted by the next subsection, all damage or destruction by fire

ATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 40 completely razed or removed as permitted by the next subsection, all damage or destruction by fire or other casualty to all or any portion of any improvements on a Lot, including the residence and/or any appurtenant garage as originally constructed on a Lot, must be repaired or replaced by the Owner thereof within seventy-five days after such damage or destruction; or, where repairs or replacements cannot be completed within seventy-five days, they must be commenced within such period and completed within a reasonable time thereafter as determined by the ACC. For good cause shown, the ACC may extend the foregoing periods.

6.05.2 Other Casualty Losses. Whether or not insured, any building, structure, improvement and any other type of Regulated Modification which is damaged or destroyed and which is not repaired or replaced as provided by the above subsection must either be razed or removed in its entirety from the affected Lot and the Subdivision within sixty days after such damage or destruction. This includes removal of any foundation as to any razed or removed building, structure or other improvement and such other restoration required such that after razing or removal Prevailing Community Standards are maintained. For good cause shown, the ACC may extend the foregoing periods.

6.05.3 ACC Approval Required. The provisions of Article IV apply to all work and any other activities pursuant to the requirements of this Section.

SECTION 6.06 Owner Insurance.

6.06.1 General. The Owner of each Lot must maintain personal liability insurance and all-risk property and casualty insurance as required by this Section, and of such types and

N 6.06 Owner Insurance.

6.06.1 General. The Owner of each Lot must maintain personal liability insurance and all-risk property and casualty insurance as required by this Section, and of such types and forms, in such amounts and with such deductibles, limits and other terms as from time to time established by applicable Rules and Regulations, The Board is also specifically authorized by applicable Rules and Regulations to alter, amend, repeal or revise any provisions of this Section (including all subparts). NOTWITHSTANDING THE FOREGOING OR ANY OTHER PROVISIONS OF THIS SECTION, THIS DECLARATION OR ANY OTHER GOVERNING DOCUMENTS (I). OBTAINING OF LIABILITY AND PROPERTY INSURANCE REGARDING AND FOR EACH LOT AND ALL IMPROVEMENTS THEREON (INCLUDING RESIDENCES AND APPURTENANT STRUCTURES AND THE CONTENTS THEREOF) IS » THE SOLE RESPONSIBILITY OF THE OWNER THEREOF, (II) DECLARANT, THE ASSOCIATION, THE BOARD AND THEIR RELATED PARTIES MAKE NO REPRESENTATION WHATSOEVER THAT THE LIMITS OR FORMS OF INSURANCE REQUIRED BY THIS SECTION OR THAT COMPLIANCE IN ANY OTHER RESPECT WITH THE PROVISIONS HEREOF WILL BE ADEQUATE FOR ANY PURPOSE, AND (III) DECLARANT, THE ASSOCIATION, THE BOARD AND THEIR RELATED PARTIES HAVE NO OBLIGATION WHATSOEVER TO CONFIRM COMPLIANCE BY ANY OWNER WITH ANY PROVISIONS OF THIS SECTION, OR TO ACT ON BEHALF OF ANY OWNERS TO OBTAINING OF ANY INSURANCE OR OTHERWISE COMPLYING WITH ANY PROVISIONS OF THIS SECTION OR TO OTHERWISE ASSUME ANY RESPONSIBILITY REGARDING THE FOREGOING.

6.06.2 Required Coverage. At a minimum, the Owner of each Lot must obtain property insurance to insure the residential dwelling thereon, and all fixtures, equipment and other improvements pertaining thereto. Said dwelling coverage must be on a current replacement cost

btain property insurance to insure the residential dwelling thereon, and all fixtures, equipment and other improvements pertaining thereto. Said dwelling coverage must be on a current replacement cost basis in an amount of not less than ninety percent (90%) of the insurable value against risks of loss DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 41 or damage by fire and other hazards as are covered by standard extended all-risk coverage, with demolition endorsement (or equivalent), and must include coverage against (i) fire and lightning, (ii) smoke, (iii) windstorm, hurricane and hail, (iv) explosion, (v) aircraft and vehicles, (vi) vandalism, malicious mischief and theft, (vii) riot and civil commotion, (viii) collapse of building in whole or in part, (ix) accidental discharge, leakage or overflow of water or steam from within a plumbing, heating or air conditioning system or household appliance, (x) falling objects, (xi) freezing and (m) flood insurance, if applicable. Notwithstanding the foregoing, Declarant, TWDC and Builder shall not be required to maintain the insurance required herein on Lot and improvements being constructed and/or held by Declarant, TWDC, or Builder including without limitation any spec Townhomes and/or model Townhomes.

6.06.3 Coverage Periods: Notice: Policy Provisions. Dwelling coverage as required by this Section must be obtained effective as of the date of acquisition of ownership by an Owner, and must remain continuously in effect through the date of acquisition of ownership by each succeeding Owner. At the time of acquisition of any and all coverage required by the Section or applicable Rules and Regulations and at the time of each renewal, a policy declaration signed

ip by each succeeding Owner. At the time of acquisition of any and all coverage required by the Section or applicable Rules and Regulations and at the time of each renewal, a policy declaration signed by the insurer and setting forth the types of coverage, endorsements, deductibles and limits must be mailed to the Association. Each policy must to the extent obtainable (i) waive any rights of the insurer to subrogation against Declarant, the Association and their Related Parties, (ii) provide primary coverage in the event of any other coverage under other insurance carried by Declarant, the Association or their Related Parties, and (iii) upon written request by the Association, provide that the insurer may not cancel or refuse to renew the policy until at least thirty days written notice is given to the Association.

6.06.4 Proof of Coverage: Default. Upon written request each Owner must provide to the Association proof of insurance as required by this Section and any applicable Rules and Regulations in such manner and form as the Board may require. If in the sole opinion of the Board satisfactory proof of insurance is not provided, the Association may (but has no obligation whatsoever to) obtain the required coverage on behalf of the Owner and assess as a specific assessment all premiums and all other costs and expenses related thereto to the defaulting Owner.

SECTION 6.07 Association Insurance.

6.07.1 Coverage. To the extent reasonably available, the Association may maintain the following insurance coverage: (a) _ property insurance on all insurable Community Properties insuring against all risks of direct physical loss commonly insured against, including fire and extended coverage, in a total amount of at least eighty percent of the

ll insurable Community Properties insuring against all risks of direct physical loss commonly insured against, including fire and extended coverage, in a total amount of at least eighty percent of the replacement cost or actual cash value of the insured property as of the effective date and at each renewal date of the policy (exclusive of land, foundations or slabs, excavations and such other items usually excluded from insurance coverage); (b) comprehensive liability insurance, including medical payments insurance, libel, slander, false arrest and invasion of privacy coverage, and errors and omissions coverage, in amounts determined by the Board and covering all occurrences commonly insured against for death, bodily injury, and DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 42 property damage; (c) worker's compensation to the extent required by law; and (d) such other insurance as the Board deems appropriate.

6.07.2 Administration of Claims, Fire and casualty policies shall be purchased in the name of the Association, the Owners and their mortgagees, as their interests may appear. A claim for any loss covered by any policy must be submitted by the Association and adjusted with the Association. The insurance proceeds for that loss shall be payable to an insurance trustee designated by the Board for that purpose if the designation of an insurance trustee is considered by the Board to be necessary or desirable, or otherwise to the Association, and not to any Owner or lienholder. The insurance trustee or the Association shall hold insurance proceeds in trust for the Owners and lienholders as their interests may appear. All repairs, replacements or

t to any Owner or lienholder. The insurance trustee or the Association shall hold insurance proceeds in trust for the Owners and lienholders as their interests may appear. All repairs, replacements or reconstruction will be substantially similar to original construction, 6.07.3 Deductibles: Claims. The Board shall determine appropriate deductibles for all insurance policies. The Board may in its sole discretion determine whether or not any particular claim is to be made taking into account (without limitation) such factors as adverse effects of claims made as to future coverage or coats there of Each Owner shall is a condition to the validity of any claim provide all information and documentation which is reasonably necessary to fully ‘ evaluate each claim. Each Owner shall be fully responsible for payment in full of each claim which does not exceed the then applicable deductible. Determinations by the Board as to the validity of any claim as to amount or otherwise, and as to any other matters pertaining to this Section are final and conclusive.

6.07.4 Unavailable Coverage. Additional Rules and Regulations. Neither the Association nor its Related Parties are liable for failure to obtain any insurance coverage or to otherwise comply with any other provisions of this Article VI regarding same if such failure is due to unavailability or to excessive costs as determined in the sole good faith opinion of the Board, or for any other reason beyond the reasonable control of the Board. The Board is specifically authorized from time to time to adopt and amend policies, procedures and any other Rules and Regulations to more fully effectuate the purposes and intent of the provisions of this Section 6.07.

SECTION 6.08 Agreement Relating to Common Walls and Other Shared Structural

and any other Rules and Regulations to more fully effectuate the purposes and intent of the provisions of this Section 6.07.

SECTION 6.08 Agreement Relating to Common Walls and Other Shared Structural Components.

6.08.1 Irrevocable Agreement. Each Townhome will share a wall or walls common to the adjacent Townhome or Townhomes which separates each Townhome (the "Common Wall") unless said Townhome is a Detached Residence in which case it will shall no have no Common Walls. Each Owner, by acceptance of an executory contract for conveyance, deed or other conveyance to a Lot, hereby irrevocably agrees each of the provisions of this Section shall govern the use, maintenance, repair, replacement and extension of any and all Common Walls.

6.08.2 Common Usage. Each Owner acknowledges and agrees that the adjoining Townhome Owner has full right to use the Common Wall for the insertion of beams or otherwise for support and enclosure; provided, however, that such use may not injure the adjoining Townhome or impair the Common Wall benefits of support and enclosure to which the adjoining DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 43 Townhome is entitled; and further provided that prior written notice of such use is given to the Owner by the adjoining Owner as provided in Section 9.04.1. To facilitate such use and for the purpose of erecting, extending, repairing or replacing the Common Wall as maybe herein provided, each Owner is licensed by the adjoining Owner to enter upon the adjoining Owner's premises to make necessary excavations or to do all other work necessary to exercise the rights provided in the other provisions of this Article.

6.08.3 Extensions. Both the Owner and the adjoining Owner have the right to

ssary excavations or to do all other work necessary to exercise the rights provided in the other provisions of this Article.

6.08.3 Extensions. Both the Owner and the adjoining Owner have the right to extend the Common Wall either horizontally or vertically, or both, and to make such extension of greater thickness of the Common Wall or any extension thereof already built; provided, however, such added thickness may not be placed upon the land of the other Owner without that Owner's consent in writing, and any such addition may not injure the adjoining Townhome or impair the Common Wall benefits of support and enclosure to which the adjoining Townhome is entitled; and provided further that prior approval of the ACC as herein provided is .obtained. In the event the Common Wall is extended as herein provided, either Owner has the right to use the same for any proper purposes for which the extension may be made to the full extent of the length and height thereof and in the same manner that the Owner is entitled, under the provisions hereof: to use the Common Wall as originally constructed.

6.08.4 Costs of Extension. In the event the Common Wall is extended as herein provided, the cost and expense of the extension must be borne by the Owner causing it to be made; provided, however, that should the adjoining Owner then use the extension or any portion thereof as a Common Wall, then that adjoining Owner must pay to the other Owner, fifty percent (5 0%) of the cost of the extension or portion thereof used as a Common Wall.

6.08.5 _ Costs of Repair or Rebuilding. In the event that it becomes necessary to repair or rebuild the Common Wall or any portion thereof as constructed or extended, the cost of

sed as a Common Wall.

6.08.5 _ Costs of Repair or Rebuilding. In the event that it becomes necessary to repair or rebuild the Common Wall or any portion thereof as constructed or extended, the cost of repairing or rebuilding the portions of the Common Wall used by both Owners at the time will be at the expense of both Owners in equal shares, and the cost of repairing or rebuilding any remaining portion will be wholly at the expense of the Owner who exclusively uses that portion.

6.08.6 Damage or Destruction. In the event the Common Wall is totally or partially destroyed by fire or other casualty, the Common Wall must be reconstructed either (i) at the expense of both Owners, in equal shares, in the event both intend to continue the use of the Common Wall, or (ii) at the expense of the Owner intending to continue use of the Common Wall if only one Owner will continue its use.

6.08.7 Weatherproofing. Notwithstanding any other provisions of this Section, an Owner who by their negligent or willful act causes the Common Wall to be exposed to the elements, must bear the whole cost of furnishing the necessary protection against such elements and all damages resulting from same.

6.08.8 Duration, The duration of all provisions of this Section extends for a period of time equal to these covenants and restrictions and as long thereafter as reasonably necessary to the use and occupancy of each Townhome, and constitutes an easement and a covenant running with the land; provided, however, that nothing herein contained shall be construed as a conveyance by either party of any rights in the fee of the land upon which a Common Wall may stand.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 44

nce by either party of any rights in the fee of the land upon which a Common Wall may stand.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 44 6.08.9 Extension of Owners' Access Easement. Notwithstanding any other provisions hereof to the contrary, the access easement as set forth in Section 9.04 is hereby extended to entry to a Townhome as is necessary to perform needed work as to the Common Wall and other shared structural components, subject however to (i) reasonable requirements by the Owner and/or occupant of the Townhome being accessed to protect the privacy of the occupants and the contents of the Townhome, and (ii) such other Rules and Regulations as from time to time adopted by the Board.

6.8.10 General Rules of Law to Apply. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding party walls and liability of adjacent owners for property damage due to negligence or willful acts or omissions apply to each Common Wall.

SECTION 6.09 Water Usage. All toilets, faucets (including outside faucets), sinks, dishwashers, washing machines and all other plumbing and other water related facilities which service a Lot and any improvements thereon must be regularly inspected and properly maintained at all times to prevent water leakage, excess water usage and any other waste of water. Nothing shall be done and no condition shall be permitted which may or does cause water leakage, excess water usage or waste of water SECTION 6.10 Condemnation, If at any time all or any part of the Community Properties is taken (or conveyed in lieu of and under threat of condemnation by the Association

water usage or waste of water SECTION 6.10 Condemnation, If at any time all or any part of the Community Properties is taken (or conveyed in lieu of and under threat of condemnation by the Association acting on the approval of the Owners of a majority of Lots then contained within the Subdivision) by any authority having the power of condemnation or eminent domain, any award compensation or damages must be paid to the Association as trustee for all Owners. The board has the exclusive right to act on behalf of the Association with respect to the negotiation and litigation of the taking or condemnation issues affecting such Community Properties. The Association shall give timely notice of the existence of such proceedings to all Owners and their mortgagees, if any. The expense of participation in such proceedings shall be common expenses payable from the Maintenance Fund. The Owners may, by vote of the Owners of seventy-five per cent or more of all Lots, agree to distribute the proceeds of any condemnation or taking by eminent domain, to each Owner and their mortgagee, if any, as their interest may appear. In the event the Owners do not so agree, such proceeds must be added to the funds of the Association, and the Association shall decide on whether or not to replace or restore, as far as possible, the Community Properties so taken or damaged. If condemnation proceeds are insufficient to replace or restore any loss or damage, the .

Association may levy a special assessment as provided for in Section 5.05 of this Declaration.

Article VII Use Restrictions SECTION 7.01 Residential Use; Group Homes: Treatment Facilities.

7.01.1 General, Each and every Lot is hereby restricted to single family residential use only. No residence may be occupied by-more than one single family.

tial Use; Group Homes: Treatment Facilities.

7.01.1 General, Each and every Lot is hereby restricted to single family residential use only. No residence may be occupied by-more than one single family.

7.01.2 No Business. Professional, Commercial or Manufacturing Use, No business, professional, commercial or manufacturing use maybe made of any Lot or any improvement located thereon, even though such business, professional, commercial or en DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 45 manufacturing use be subordinate or incident to use of the premises as a residence, and regardless of whether or not done for profit or remuneration. Notwithstanding the foregoing, a single family residence may be used for maintenance of a personal professional library, keeping of personal or professional records or accounts, or handling personal business or professional telephone calls, or for maintenance of one home office, but if and only if such business activity (i) does not involve use of any part of the applicable Lot, or residence or other building or improvement thereon, by any Person other than the Owner or the Owner's tenant (but not both), no on-site employees are otherwise permitted, and the public is not invited, permitted or allowed to enter the Lot to conduct any business thereon, (ii) is not detectable by sight, sound or smell from outside the residence, and there is no other external evidence thereof (including signs, advertising, or contacts in person at the residence with clients or customers), (iii) does not involve the storage of any equipment, materials or devices other than as consistent with operation of a shall home office, and in all events

at the residence with clients or customers), (iii) does not involve the storage of any equipment, materials or devices other than as consistent with operation of a shall home office, and in all events which are not hazardous and do not constitute any type of threat to health or safety or other nuisance, (iv) complies with all applicable County ordinances (including zoning ordinances), and with any other governmental laws, rules, regulations and permitting or licensing requirements applicable to same, (v) is consistent with the residential character of the Subdivision, and (vi) does not cause any annoyance or unreasonable inconvenience to Owners or occupants of area Lots or any Community Properties. — 7.01.3 Residential Use Only. Without limitation of the foregoing, as used in this Declaration the term "residential use" shall be construed to prohibit the use of any Lot or the residence thereon for apartment houses or other type of dwelling designed for multi-family dwelling, or use for or operation of a boarding or rooming house or residence for transients, or the use of any permitted outbuilding as an apartment or residential living quarters.

7.01.4 Single Family Defined. As used in this Declaration the term "single family" means either: (i) husband and wife, their dependent children and their dependent parents, grandparents, grandchildren, brothers and sisters who are maintaining a common household and who are members of a single family related by blood, marriage or adoption; or (ii) one or more natural persons not so related but who are maintaining a common household in a single family residence on a nonprofit, noncommercial basis with a common kitchen and dining area; and (iii) the bona fide domestic servants of either. "Dependent children" and "dependent parents,

n a single family residence on a nonprofit, noncommercial basis with a common kitchen and dining area; and (iii) the bona fide domestic servants of either. "Dependent children" and "dependent parents, grandparents, grandchildren, brothers aid sisters" means such relatives who do not maintain a separate residence and are not able to maintain a separate residence.

7.01.5 Maximum Occupancy. In addition to the limitations above set forth, in no event may a single-family residence be occupied by more persons than the product of the total number of bona fide bedrooms contained in the single-family residence multiplied by two. The number of bona fide bedrooms is based on the single family residence as originally constructed, plus any additional bedroom(s) which may thereafter be added which have been specifically approved by the ACC for such use, if any.

7.01.6 Group Homes: Day-Care Center: Treatment Facilities. To the fullest extent allowed by law, no Lot or any part of the single family residence thereon may be used for the operation of a group home, half-way house, day-care center, rehabilitation center, treatment facility, or residence of unrelated individuals who are engaging in, undertaking, or participating in any group living, rehabilitation, treatment, therapy, or training with respect to previous or continuing criminal activities or convictions, alleged criminal activities, alcohol or drug DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 46 dependency, physical or mental handicaps or illness, or other similar matters.

7.01.7 Garage and Other Sales Prohibited. Unless and otherwise permitted by applicable Rules and Regulations, and otherwise without limitation of any other provisions hereof:

or other similar matters.

7.01.7 Garage and Other Sales Prohibited. Unless and otherwise permitted by applicable Rules and Regulations, and otherwise without limitation of any other provisions hereof: garage sales, rummage sales, antique sales, estate sales and any similar sales activities are strictly prohibited.

SECTION 7.02 Pets, Animals and Livestock.

7.02.1 Permitted Pets: Leashing Required. No animals, hogs, horses, livestock or poultry of any kind may be raised, bred, kept or maintained on any Lot at any time except "Permitted Pets" which are dogs, cats or other usual household pets, Not more than two Permitted Pets are allowed per Lot unless authorized in writing by the Board or applicable Rules and Regulations, and no Permitted Pets may be raised, bred, kept or maintained for commercial purposes. Subject to Section 7.04, the foregoing limitation on the number of Permitted Pets does not apply to hamsters, small birds, fish or other constantly caged animals which are continuously kept completely within a residence, nor shall it apply to require the removal of any litter born to a Permitted Pet prior to the time that the animals in such litter are three months old. All Permitted Pets must be kept on a_ leash or otherwise maintained under the control of their owner when not maintained in an enclosed yard from which the Permitted Pet cannot escape. The Board may adopt Rules and Regulations to further regulate Permitted Pets, including without limitation to further specify types of usual household pets to be included or excluded as Permitted Pets, regulations as to number or otherwise applicable to caged animals and areas outside a residence and/or an enclosed yard in the Subdivision where Permitted Pets are permitted or from which they are excluded. NO PETS OF

number or otherwise applicable to caged animals and areas outside a residence and/or an enclosed yard in the Subdivision where Permitted Pets are permitted or from which they are excluded. NO PETS OF ANY KIND ARE PERMITTED UPON ANY COMMUNITY PROPERTIES EXCEPT TO THE EXTENT OTHERWISE EXPRESSLY PERMITTED BY APPLICABLE RULES AND © REGULATIONS AND THEN ONLY IN STRICT COMPLIANCE THEREWITH, AND EXCEPT AS TO LEGITIMATE SEEING-EYE DOGS.

7.02.2 Removal. As to any animals or livestock not permitted by this Section, and as to any Permitted Pet which is allowed to roam free, or which in the sole opinion of the Board endanger health or safety, make objectionable noise, or constitute a nuisance, annoyance or inconvenience to the Owners or occupants of other Lots, the Community Properties or any property located adjacent to or in the vicinity of the Subdivision, or which is otherwise raised, bred, kept or maintained in violation of this Declaration or applicable Rules and Regulations, the Board may cause any such animal, livestock or Permitted Pet to be removed from the Subdivision and may prohibit the return of any:such Permitted Pet to the Subdivision. Removal as aforesaid will be at the sole expense of the responsible Owner or Owner's tenant and without liability of any kind whatsoever to the Association, including the ACC, their Related Parties, or any Person which the Board may direct to remove any such animal, livestock or Permitted Pet.

SECTION 7.03 Vehicles; Parking.

7.03.1 Prohibited Vehicles; Covers Prohibited. No boat, mobile home, trailer, boat rigging, truck larger than a three-quarter ton pick-up, recreational vehicle, bus, unused vehicle, inoperable vehicle of any kind (including any vehicle requiring same which does not have both a

boat rigging, truck larger than a three-quarter ton pick-up, recreational vehicle, bus, unused vehicle, inoperable vehicle of any kind (including any vehicle requiring same which does not have both a current and valid license plate and current and valid state inspection sticker), and no unsightly vehicle as determined in the sole opinion of the Board, may be parked, stored or kept at any time DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 47 within the Subdivision, or on any driveway or upon any Lot unless such vehicle is stored completely within a garage. Use of vehicle covers of any kind (except for vehicles parked completely in a garage) is prohibited.

7.03.2 Prohibited Parking - General, No vehicle of any kind may be parked, stored or otherwise permitted to remain at any time (i) on grass or any other similar portion of any Lot or any other place within the Subdivision not intended customarily for use for parking of vehicles, or (ii) in a slanted or diagonal manner across any driveway or other designated parking space, or in any other manner other than as is customary for the type of parking space being used, or (iii) in such manner as to obstruct or impede sidewalk, driveway or street access or usage, or in such manner that any part of the vehicle extends in to any part of any street or common drive. No Owner or resident is permitted to park or store any vehicle on the Lot of another Owner or resident.

7.03.3 PARKING.

(a) OCCUPANT VEHICLES. THE PROVISIONS OF THIS SECTION APPLY TO PERMITTED VEHICLES AS TO EACH LOT WHICH ARE OWNED AND/OR OPERATED BY (I) ANY SINGLE-FAMILY MEMBER OF THE RESIDENTS OF EACH LOT, AND (Il) ANY OTHER PERSON VISITING OR STAYING AT THE LOT WHO PARKS THE VEHICLE WITHIN THE

S AS TO EACH LOT WHICH ARE OWNED AND/OR OPERATED BY (I) ANY SINGLE-FAMILY MEMBER OF THE RESIDENTS OF EACH LOT, AND (Il) ANY OTHER PERSON VISITING OR STAYING AT THE LOT WHO PARKS THE VEHICLE WITHIN THE SUBDIVISION AT ANYTIME MORE THAN THREE DAYS IN ANY WEEK OR MORE THAN FIVE DAYS IN ANY CONSECUTIVE THIRTY DAY PERIOD ("OCCUPANT VEHICLES"). OCCUPANT VEHICLES MAY BE PARKED ONLY IN THE GARAGE OF THEIR RESIDENCE AT WHICH THE OPERATOR THEREOF RESIDES OR IN THE DRIVEWAY OF SAID RESIDENCE, EXCEPT AS PROVIDED IN SUBSECTION (c), PARKING OF OCCUPANT VEHICLES AT ANY TIME AT ANY LOCATION IN THE SUBDIVISION EXCEPT IN ACCORDANCE WITH THE FOREGOING, INCLUDING PARKING OF OCCUPANT VEHICLES UPON ANY STREET OR COMMON DRIVE OR ANY AREA NOT DESIGNATED FOR PARKING WITHIN THE SUBDIVISION IS STRICTLY PROHIBITED.

(b) GUEST PARKING. AREAS MAY AT DECLARANT SOLE DISCRETION BE DESIGNATED AS GUEST OR PUBLIC PARKING.

(c) ASSIGNED PARKING; NOTICE OF LIMITED PARKING.

DECLARANT, DURING THE DEVELOPMENT PERIOD, AND THE BOARD BY ADOPTION OF APPLICABLE RULES AND REGULATIONS THEREAFTER, MAY DESIGN SPECIFIC AREAS WITHIN. THE SUBDIVISION AS ADDITIONAL PARKING AREAS FOR RESIDENTS OR AS GUEST PARKING, BUT NEITHER SHALL HAVE ANY OBLIGATION WHATSOEVER TO PROVIDE FOR ANY SUCH PARKING DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 48 AREAS, ACCORDINGLY, NO SUCH PARKING MAY EVER BE AVAILABLE: WITHIN THE SUBDIVISION, AND ANY DESIGNATION OF PARKING AREAS MAY BE CHANGED FROM TIME TO TIME AND AT ANY TIME BY DECLARANT OR THE BOARD, AS APPLICABLE, AS EITHER IN THEIR SOLE DISCRETION MAY DETERMINE. IN ALL EVENTS, AVAILABLE PARKING WITHIN THE SUBDIVISION FOR OCCUPANT VEHICLES AND/OR GUESTS MAY BE LIMITED . SEE ALSO SECTION 8.012_REGARDING LIMITATION AS

THER IN THEIR SOLE DISCRETION MAY DETERMINE. IN ALL EVENTS, AVAILABLE PARKING WITHIN THE SUBDIVISION FOR OCCUPANT VEHICLES AND/OR GUESTS MAY BE LIMITED . SEE ALSO SECTION 8.012_REGARDING LIMITATION AS TO GARAGE SIZE. ANY SUCH LIMITATIONS SHALL NOT BE A BASIS FOR NON-COMPLIANCE WITH APPLICABLE . PROVISIONS OF THIS DECLARATION OR ANY OTHER, GOVERNING DOCUMENTS (INCLUDING APPLICABLE RULES AND REGULATIONS), AND SHALL NOT BE A BASIS FOR ANY CLAIM WHATSOEVER AGAINST DECLARANT OR THE ASSOCIATION, OR ANY OF THEIR RELATED PARTIES.

(d) RESPONSIBILITIES OF OWNERS AND TENANTS. OWNERS AND THEIR TENANTS MUST MAINTAIN FULL COMPLIANCE WITH THE PROVISIONS OF THIS SECTION (INCLUDING RULES AND REGULATIONS ADOPTED PURSUANT TO THIS DECLARATION) BY THEIR RESPECTIVE RELATED PARTIES AND EACH IS JOINTLY AND SEVERALLY LIABLE FOR ALL VIOLATIONS BY THEIR RESPECTIVE RELATED PARTIES.

7.03.4 Repair of Vehicle. No work on any vehicle within the Subdivision, including on any street, or on any Community Properties, or on any Lot, may be performed at any time other than temporary emergency repairs or other work required in order to promptly remove an inoperable or disabled vehicle from the Subdivision or to and completely within a garage.

7.03.5 Vehicle Defined. As used in this Section, "vehicle" means a device in, on, or by which a person or property may be transported, including an operable or inoperable automobile, truck, motorcycle, recreational vehicle, trailer, and such other devices as from time to time specified by applicable Rules and Regulations.

7.03.6 Presumptive Violations. Repairs or other work extended over a period exceeding eight hours is conclusively presumed not to be "temporary". Any vehicle is conclusively

ble Rules and Regulations.

7.03.6 Presumptive Violations. Repairs or other work extended over a period exceeding eight hours is conclusively presumed not to be "temporary". Any vehicle is conclusively presumed to be "unused" or "inoperable" if the vehicle has not been operated outside the _ Subdivision for seven or more consecutive days or the vehicle has not been operated outside the Subdivision more than twice in any fourteen-day period. The provisions hereof do not prejudice the right of the Association to otherwise establish a violation. The foregoing provisions do not apply to any vehicle completely stored within a garage. The Board may grant reasonable exceptions to the foregoing upon receipt of written request from an Owner or their tenant.

7.03.7 Towing. The Board or its designated representative may cause any vehicle which is parked, stored or maintained in violation of this Declaration or other Governing Documents, or in violation of any ordinance, statute or other governmental regulation, to be DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 49 removed from the Subdivision to any vehicle storage facility within Montgomery County, Texas at the sole cost and expense of the Person owning such vehicle (whether or not such Person is an - Owner) and/or the Owner as to whom such Person is a tenant, visitor, guest, invitee or other Related Party. Any such removal may be in accordance with any applicable statute or ordinance.

7.03.8 LIMITATION OF LIABILITY. DECLARANT, THE ASSOCIATION, THE BOARD, THEIR RELATED PARTIES, AND ANY PERSON REMOVING ANY VEHICLE AS HEREIN PROVIDED (THE "INDEMNITEES") SHALL HAVE NO LIABILITY WHATSOEVER IN CONSEQUENCE OF REMOVAL OF ANY VEHICLE AS HEREIN

TION, THE BOARD, THEIR RELATED PARTIES, AND ANY PERSON REMOVING ANY VEHICLE AS HEREIN PROVIDED (THE "INDEMNITEES") SHALL HAVE NO LIABILITY WHATSOEVER IN CONSEQUENCE OF REMOVAL OF ANY VEHICLE AS HEREIN _ PROVIDED. THE PERSON OWNING EACH TOWED VEHICLE (WHETHER OR NOT SUCH PERSON IS AN OWNER) AND THE OWNER AND OWNER’S TENANT AS TO WHOM SUCH PERSON IS A VISITOR, GUEST, INVITEE, OR OTHER RELATED PARTY, SHALL HOLD ALL SUCH INDEMNITEES HARMLESS FROM ANY AND ALL CLAIMS, SUITS, ACTIONS, LIABILITIES, OR DAMAGES ARISING, DIRECTLY OR INDIRECTLY, AS RESULT OF SUCH REMOVAL. THE PROVISIONS HEREOF ARE CUMULATIVE OF THE PROVISIONS OF SECTION 3.06.

SECTION 7.04 Nuisance; Unsightly or Unkept Conditions.

7.04.1 General. It is the continuing responsibility of each Owner to prevent the development of any unclean, unhealthy, unsightly, or unkept condition on such Owner's Lot. No Lot may be used, in whole or in part, for the storage of any property or thing that will cause such Lot to appear to be in an unclean or untidy condition, or that will be obnoxious to the eye. No hobbies or activities which will cause disorderly, unsightly, or unkept conditions, including without limitation the assembly or disassembly of or repair work on motor vehicles or other mechanical devices, may be performed within the Subdivision. There may not be maintained any plants, animals, devices, thing, use or activities of any sort which in any way is noxious, dangerous, unsightly, unpleasant, or of a nature as may diminish or destroy the enjoyment of the residents of the Subdivision.

7.04.2 Nuisance or Annoyance. No substance, thing, or material may be kept upon any Lot that will emit foul or obnoxious odors, or that will cause any noise or other condition that

of the Subdivision.

7.04.2 Nuisance or Annoyance. No substance, thing, or material may be kept upon any Lot that will emit foul or obnoxious odors, or that will cause any noise or other condition that will or might disturb the peace, quiet, safety, comfort, or serenity of the occupants of surrounding property. No noxious or offensive trade or activity may be carried on upon any Lot, nor may anything be done thereon tending to cause embarrassment, discomfort, annoyance, or a nuisance to any residents of the Subdivision or to any Person using any property adjacent to the Lot. No spirituous, vinous, malt, medicated bitters, alcohol, drugs, or other intoxicants may be sold or offered for sale on any part of any Lot or any other place within the Subdivision. No Lot or any part thereof may be used for any immoral or illegal purposes.

7.04.3 Pollutants; Hazardous Materials. Without limitation of any other provisions of this Section, no Owner or tenant, and Related Parties of either, shall dump grass clippings, leaves or other debris, detergents, petroleum products, fertilizers, or other pollutants or potentially hazardous or toxic substances, in any sewer system, water system, drainage ditch, stream, pond or lake within the Subdivision, or do anything or maintain or permit any condition in violation of applicable environmental, toxic or hazardous waste or similar laws, rules or regulations. Storage of gasoline, heating or other fuels, or of any hazardous or toxic materials upon any Lot is strictly prohibited (except that up to five gallons of fuel may be stored upon a Lot for emergency purposes DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 50

ited (except that up to five gallons of fuel may be stored upon a Lot for emergency purposes DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 50 and operation of lawn mowers and similar tools or equipment if properly kept and stored in a safe and non-hazardous manner). THE FOREGOING DOES NOT PLACE UPON DECLARANT, THE ASSOCIATION, THE ACC OR ANY OF THEIR RELATED PARTIES ANY OBLIGATION FOR ENFORCEMENT OF ANY APPLICABLE ENVIRONMENTAL, TOXIC OR HAZARDOUS WASTE OR SIMILAR LAWS, RULES OR REGULATIONS.

7.04.4 Sound Devices: Excessive Noise. No exterior speaker, horn, whistle, bell or other sound device shall be located, placed or used upon any Lot or improvement thereon. The foregoing shall not apply to fire or security devices used exclusively for such purpose; provided, such devices must be installed such as not to be visible from any street and otherwise in as inconspicuous a manner as possible. No stereo, television, speaker, horn, whistle, bell or other sound device shall be operated within, and no other sound emitting activity (such as practice of a band, excessively loud social gatherings and similar activities) shall be conducted within a residence, garage or other structure which is audible outside the Lot lines of the applicable residence, garage or other structure, or which is otherwise an annoyance or nuisance to any other residents as determined in the sole opinion of the Board.

7.04.5 Authority to Cure. Upon the good faith determination of the Board that a violation of this Section exists, the Board may after written notice, take such actions as it deems necessary to abate the violation at the sole cost and expense of the violating Owner and, if

that a violation of this Section exists, the Board may after written notice, take such actions as it deems necessary to abate the violation at the sole cost and expense of the violating Owner and, if applicable, their tenant and without liability for trespass or otherwise.

SECTION 7.05 Septic Tanks, No septic tank, private water well or similar private sewage or water system is permitted upon any Lot.

SECTION 7.06 Disposal of Trash. No trash, rubbish, garbage, manure, debris or offensive material of any kind may be kept or allowed to remain on any Lot, nor may any Lot be used or maintained as a dumping ground for such materials. No incinerator may be maintained on any portion of the Subdivision, and disposal of any materials by incineration within the Subdivision is strictly prohibited. All trash and similar matter to be disposed of must be placed in cans or similar receptacles with tight fitting lids or plastic bags tied or otherwise tightly secured, and must be placed in an area adequately screened by planting or fencing from public view or within a garage except when placed for regular pickup as herein provided. Equipment used for the temporary storage and/or disposal of such material prior to removal must be kept in a clean and sanitary condition, and must comply with all applicable federal, state, county, municipal or other governmental laws and regulations. All such prohibited matter must be removed from each Lot at regular intervals if not removed or removable by a regular garbage and sanitation service, Trashand garbage for pickup by a regular service must be placed in such area or areas as the Board may from time to time direct, or as the applicable garbage and sanitation service or provider may

, Trashand garbage for pickup by a regular service must be placed in such area or areas as the Board may from time to time direct, or as the applicable garbage and sanitation service or provider may require; provided trash and garbage may not be placed for pickup earlier than eight (8) hours prior to a scheduled pickup day, and all receptacles therefor and any remaining trash and garbage must be removed from the pickup site by midnight of the pickup day. Any of the foregoing provisions may be modified, added to or deleted by applicable Rules and Regulations.

SECTION 7.07 Permitted Hours for Construction Activity. Except as is reasonably necessary for initial construction of a residence on a Lot, or in the case of an Emergency, outside construction work or noisy interior construction work is permitted only as follows: (i) as to initial construction of a residence upon a Lot, only between the hours of 6 a.m. to 8 p.m., Monday through DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 51 Friday, 7 a.m. to 6 p.m. on Saturday and 10 a.m. to 6 p.m. on Sunday, and (ii) in all other cases, not on any legal holiday or Sunday, and otherwise only between the hours of 7:00 a.m. to 7:00 p.m., Monday through Friday, and 9:00 a.m. to 6:00 p.m. on Saturdays.

SECTION 7.08 Building Materials, No Lot shall be used for the storage of any materials whatsoever, except that material used in the construction of improvements erected upon any Lot may be placed upon such Lot as provided in Section 4.07. Under no circumstances shall building materials be placed or stored on any street or walkway or upon any Community Properties except as expressly authorized in writing by the Board.

d in Section 4.07. Under no circumstances shall building materials be placed or stored on any street or walkway or upon any Community Properties except as expressly authorized in writing by the Board.

SECTION 7.09 Outdoor Cooking. So long as permitted by the Other Applicable Covenants, Outdoor cooking is permitted only on the patio of each Townhome, only in equipment especially constructed for same which has been approved by the ACC, and only in such manner as not to create a hazard of fire or injury to persons or property and is not in violation of any applicable law or the Other Applicable Covenants. Outdoor cooking is prohibited at any other location in the Subdivision, unless a public outdoor cooking area is provided on or about Community Properties, if any. All permitted outdoor cooking equipment shall be properly maintained, and shall be stored in an area screened from public view when not in use.

SECTION 7.10 Firearms and Fireworks Prohibited. The use of firearms in the Subdivision is strictly prohibited. The term "firearms" includes without limitation "B-B" guns, pellet guns, air rifles and pistols and small or large firearms of all types. Fireworks of any type are strictly prohibited at any place within the subdivision.

SECTION 7.11 Basketball Goals. No basketball goals or backboards may be mounted ona garage or on a pole, or otherwise erected or maintained upon any Lot, without the prior written approval of the ACC.

SECTION 7.12 Clotheslines. No outside clotheslines shall be constructed or maintained on any Lot or Community Properties, nor shall any other outside drying of clothes be permitted.

SECTION 7.13 Timesharing Prohibited. No Lot may be made subject to any type of

constructed or maintained on any Lot or Community Properties, nor shall any other outside drying of clothes be permitted.

SECTION 7.13 Timesharing Prohibited. No Lot may be made subject to any type of timesharing, fraction-sharing or similar program whereby the right to exclusive use of the Lot or the single family residence thereon rotates among members of the program on a fixed, floating or other time schedule, SECTION 7.14 Electronic Signal Devices. The Board may require registration of the frequencies of any electronic signal devices such as garage door openers, remote controls for lights or other electronic devices with the Board. If so required and in the event a similar frequency is already registered with the Board, the Board has the right to require the later registering user to change their proposed frequency. The Board will attempt to coordinate such frequencies so that one user's electronic devices will not interfere with the devices of other users.

SECTION 7.15 Leases.

7ASA Restrictions. No Lot may be leased other than for use as a single family residence as herein provided and defined. No Owner may lease a Lot and attendant use of the residence and improvements thereon for transient or hotel purposes. No Owner may lease less than DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 52 an entire Lot and attendant use of the residence and improvements thereon. All leases: (i) must be in writing; (ii) must be for a period of at least one year to the same tenant; (iii) may not be lease to the a tenant for the purposes of re-leasing or subleasing the residence, and (iv) are specifically subject in all respects to all provisions of this Declaration and all other Governing Documents

se to the a tenant for the purposes of re-leasing or subleasing the residence, and (iv) are specifically subject in all respects to all provisions of this Declaration and all other Governing Documents (whether or not expressly stated in the lease), and any failure by lessee: to comply with this Declaration or any other Governing Documents will be a default under the lease. In the event of any change in or enactment of any federal, state, county, or municipal rules, regulations, or laws applicable to the Lots which prohibit any restrictions on leases contained herein, any such prohibit lease restriction shall be void and all other lease restriction contained herein remain in full force and effect to the extent permitted by law.

7.15.2 Default. In the event of default under any lease due to violation of this Declaration or any other Governing Documents, the Board may (but has no obligation to) initiate any proceedings, actions or litigation under the lease to enforce compliance or to terminate the lease and/or for eviction. With regard to the foregoing, each Owner hereby irrevocably appoints the Board or its designated representative as their attorney-in-fact, agrees to indemnification in regard thereto to the fullest extent herein provided (including as set forth in Section 3.06) and agrees to be solely responsible for all costs thereof (including as provided in Section 5.06). NO PROCEEDINGS, ACTION OR LITIGATION UNDER THE SECTION OR ANY OTHER PROVISIONS OF THE DECLARATION OR ANY OTHER GOVERNING DOCUMENTS SHALL EVER BE CONSTRUED AS AN ASSUMPTION BY THE ASSOCIATION OR ITS RELATED PARTIES OF ANY OBLIGATION WHATSOEVER UNDER ANY LEASE OR REGARDING ANY LEASEHOLD INTEREST, INCLUDING WITHOUT LIMITATION, ANY OBLIGATION REGARDING SECURITY DEPOSITS, MAINTENANCE AND ANY OTHER

TS RELATED PARTIES OF ANY OBLIGATION WHATSOEVER UNDER ANY LEASE OR REGARDING ANY LEASEHOLD INTEREST, INCLUDING WITHOUT LIMITATION, ANY OBLIGATION REGARDING SECURITY DEPOSITS, MAINTENANCE AND ANY OTHER OBLIGATIONS PURSUANT TO TITLE 8 OF THE TEXAS PROPERTY CODE, ALL SUCH OBLIGATIONS BEING HEREBY EXPRESSLY DISCLAIMED.

715.3 Joint and Several Liabilities. Lessor(s) and lessee(s) are jointly and severally liable for the observance and performance of all of the terms and provisions of this Declaration and all other Governing Documents, including without limitation joint and several liability for all damages, costs and expenses resulting from any violation, by either, or by their respective Related Parties, all fines and assessments imposed hereby and with respect to all other rights and remedies regarding enforcement of this Declaration and all other Governing Documents.

7.15.4 Surrender of Use of Community Properties by Lessor(s). During all periods of time during which a Lot is occupied by lessee(s), lessor(s) automatically surrender all of lessors' rights as an Owner to the use of all of the Community Properties unto such lessee(s), including without limitation all rights of use of recreational facilities. The provisions of this Section do not impair the voting rights of the lessor(s), the right to inspect the leased premises or the exercise of any other rights or remedies customarily reserved for the protection of lessor(s).

SECTION 7.16 Unoccupied Residences, The Owner of a Lot with an unoccupied residence, including any mortgagee in possession and any mortgagee obtaining title to a Lot by foreclosure or by any deed or other arrangement in lieu of foreclosure, is liable for full observance and

residence, including any mortgagee in possession and any mortgagee obtaining title to a Lot by foreclosure or by any deed or other arrangement in lieu of foreclosure, is liable for full observance and performance of all terms and conditions of this Declaration and all other Governing Documents, including in particular but without limitation: (i) proper maintenance of the Lot and all improvements thereon; (ii) securing of the unoccupied residence, including fastening of windows and locking of all entry and garage doors, and maintenance of appropriate curtains or other DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 53 permitted window covers in order to prevent unauthorized entry or use; and (iii) such other maintenance as required to avoid an appearance of abandonment or other unsightly or unkept appearance.

SECTION 7.17 Undeveloped Lots. The Owner of any Lot upon which a single-family residence has not been constructed must maintain such Lot in a’ neat, sanitary and attractive condition and in accordance with other applicable provisions of this Declaration and other Governing Documents, including without limitation, periodic and regular removal of trash and debris therefrom and mowing of grass and other vegetation thereon as necessary to prevent growth to more than eight inches (8") in height.

SECTION 7.18 Garage Usage. No portion of any garage may be diverted to any use other than the parking of vehicles and other generally accepted and customary usage of a garage. In particular, but not in limitation of the foregoing, no portion of any garage may be used as a residence or a game room, or for any similar use as living quarters, Garage doors must be kept in

rage. In particular, but not in limitation of the foregoing, no portion of any garage may be used as a residence or a game room, or for any similar use as living quarters, Garage doors must be kept in a closed position when the garage area is not being actively used.

SECTION 7.19 Mineral Production. No drilling, development operations, refining, quarrying or mining operations of any kind shall be permitted upon any Lot, nor shall oil wells, tanks, tunnels, mineral excavation or shafts be permitted upon any Lot. No derrick or other structure designed for use in boring for oil or natural gas shall be permitted upon any Lot.

SECTION 7.20 Rules_and Regulations, The Board is hereby specifically authorized to promulgate, amend, modify and delete such reasonable Rules and Regulations applicable to the operation, use and occupancy of the Subdivision, including all Lots and Community Properties, as the Board may from time to time deem beneficial to the Subdivision. Such authority includes but is not limited to: (i) the right to limit, in addition to the provisions of Section 7.03, the type and size of vehicles permitted within the Subdivision, traffic and parking regulations, speed limits (other than on public streets otherwise regulated by the County or other governmental authority), and other traffic control procedures, and the maximum permissible noise levels of vehicles within the Subdivision; (ii) procedures and reasonable restrictions and limitations on the right to use Community Properties; and (iii) all procedural and substantive aspects for the establishment, levy, collection and payment of fines for any violations of the Governing Documents. Rules and Regulations are of equal dignity with and may be enforceable in the same manner as the provisions

shment, levy, collection and payment of fines for any violations of the Governing Documents. Rules and Regulations are of equal dignity with and may be enforceable in the same manner as the provisions of this Declaration; provided: 7.20.1 Rules and Regulations may not be enacted retroactively (except that if any activity is subsequently covered by Rules and Regulations and such activity ceases after enactment of the Rules and Regulations covering same, then the Rules and Regulations will apply to the activity thereafter); 7.20.2 Rules and Regulations may not be incompatible with the provisions of this Declaration; and 7.20.3 Except as otherwise herein provided, Rules and Regulations will not become effective until thirty days after notice thereof is given to all Owners or such later date as stated in the notice (certification by the Association that proper notice was given in accordance with this Section to be conclusive absent proof of fraud).

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 54 Article VIII Architectural Restrictions SECTION 8.01 Type of Residence.

8.01.1 Single Family Residence. No building other than one single family residence not to exceed three stories which is to be occupied as a residence by one single family, an appurtenant garage and such outbuildings if and as may be approved in writing by the ACC may be constructed, placed or permitted to remain on each Lot. Without limitation of the foregoing, the term "single family residence" shall be construed to prohibit duplex houses, garage apartments, apartment houses, and any other multi-family dwelling.

8.01.2 Garages and Garage Doors; Notice of Size Limitation.

(a) General. All single family residences must have an enclosed

s, garage apartments, apartment houses, and any other multi-family dwelling.

8.01.2 Garages and Garage Doors; Notice of Size Limitation.

(a) General. All single family residences must have an enclosed attached or detached minimum two car parking garage. Each such garage must contain a minimum of three hundred fifty (350) square feet of interior floor space. GARAGES MAY NOT BE OF SUFFICIENT SIZE TO PERMIT PARKING THEREIN OF TWO LARGE VEHICLES SUCH AS TWO SUV'S. ANY SUCH LACK OF PARKING SIZE SHALL NOT BE A BASIS FOR EXEMPTION FROM APPLICABLE PARKING RESTRICTIONS OR RULES AND REGULATIONS. The garage must be architecturally similar and compatible to the appurtenant residence, including as to roof line and appearance. Except for porte-cocheres, carports on Lots are prohibited. All garages must be enclosed with permanent walls and their fronts enclosed with standard type overhead doors customarily used in the building industry which garage doors must be maintained in good working order at all times.

ANY REPLACEMENT GARAGE DOOR MUST BE OF EQUAL OR BETTER QUALITY AND SUBSTANTIALLY THE SAME DESIGN AS THE GARAGE DOOR FOR THE GARAGE AS ORIGINALLY CONSTRUCTED, AND MUST BE PAINTED TO MATCH THE COLOR SCHEME OF THE RESIDENCE AS ORIGINALLY CONSTRUCTED OR A SUBSEQUENT COLOR SCHEME WHICH HAS BEEN APPROVED IN WRITING BY THE ACC. Except for interior modifications of a garage wholly consistent with its use as a garage and which do not alter the use or exterior appearance of the garage as originally constructed, nomodification of the interior or exterior of any garage as originally constructed is permitted without prior written approval of the ACC.

GARAGE DOORS MUST BE KEPT CLOSED AT ALL TIMES EXCEPT FOR ENTRY AND EXIT OF VEHICLES OR DURING BRIEF PERIODS WHEN THE GARAGE IS BEING ACTIVELY

ed is permitted without prior written approval of the ACC.

GARAGE DOORS MUST BE KEPT CLOSED AT ALL TIMES EXCEPT FOR ENTRY AND EXIT OF VEHICLES OR DURING BRIEF PERIODS WHEN THE GARAGE IS BEING ACTIVELY USED FOR CUSTOMARY PURPOSES.

(b) NOTICE OF SIZE LIMITATION; NO LIABILITY. GARAGES DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 55 MAY NOT BE OF SUFFICIENT SIZE TO PERMIT PARKING THEREIN OF THE SAME NUMBER OF LARGE VEHICLES AS THE CUSTOMARY DESCRIPTION OF THE GARAGE. FOR EXAMPLE, A "TWO-CAR GARAGE" MAY NOT BE LARGE ENOUGH TO PERMIT PARKING THEREIN OF TWO LARGE SEDANS, TWO SUV'S OR TWO OTHER LARGE VEHICLES.

THIS SIZE LIMITATION IS NOT A BASIS FOR NONCOMPLIANCE WITH APPLICABLE PROVISIONS OF THIS DECLARATION OR OTHER GOVERNING DOCUMENTS (INCLUDING APPLICABLE RULES AND REGULATIONS), AND SHALL NOT BE A BASIS FOR ANY CLAIM WHATSOEVER AGAINST DECLARANT OR THE ASSOCIATION, OR THEIR RELATED PARTIES.

8.01.3 New Construction and Continued Maintenance Required. All residences, buildings and structures must be of new construction, and no residence, building or structure maybe moved from another location to any Lot without prior written approval of the ACC. All residences, buildings and structures must be kept in good repair, must be painted (aa applicable) when necessary to preserve their attractiveness and must otherwise be maintained in such manner as to obtain and maintain Prevailing Community Standards.

8.01.4 Tents, Mobile Homes and Temporary Structures. No tent, shack, mobile home, or other structure of a temporary nature shall be placed upon any Lot or elsewhere in the Subdivision. The foregoing prohibition does not apply to restrict the construction or installation of

le home, or other structure of a temporary nature shall be placed upon any Lot or elsewhere in the Subdivision. The foregoing prohibition does not apply to restrict the construction or installation of a single utility or similar outbuilding to be permanently located on a Lot, provided it receives the prior approval of the ACC. In addition, partytents or similar temporary structures may be erected for a limited period of time for special events with prior written approval of the ACC.

SECTION 8.02 Living Area Requirements. All single-family residences, exclusive of porches and garages, must contain not less than two thousand four hundred (2,400) square feet.

SECTION 8.03 Location of Residence. No single family residence may be located upon any Lot except in accordance with building setback lines shown on any applicable Plat, or as established by this Declaration or applicable requirements of the County. Each Townhome will be located within a residential building such that the Common Wall(s) (as defined in Section 6.08) which separate one Townhome from another is/are located on a common interior side boundary line(s) of adjacent Lots, except for the Detached Residences which shall share no Common Wall with any other residence.

SECTION 8.04 Construction Standards.

8.04.1 Applicability. Except as may be otherwise authorized in writing by the ACC and in addition to all other applicable requirements of this Declaration and other Governing Documents, initial construction of all single-family residences and appurtenant structures must be in accordance with, and such residences and appurtenant structures must thereafter be maintained to the extent applicable in accordance with, the provisions of this Section 8.04.

nt structures must be in accordance with, and such residences and appurtenant structures must thereafter be maintained to the extent applicable in accordance with, the provisions of this Section 8.04.

8.04.2 Maximum Period for Completion of Construction. Upon commencement of A DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 56 construction of a single-family residence, the work thereon must be prosecuted diligently to the end that the same will not remain in a partly finished condition any longer than reasonably necessary for completion thereof. In any event construction must be substantially completed within six months after pouring of the slab for a single family residence. The foregoing period will be extended in the event of and only for the duration of delays due to strikes, war, acts of God or other good causes beyond the reasonable control of the Builder or Owner as determined in sole opinion of the ACC, 8.04.3 New Construction Materials Required. Only new construction materials (except for used brick if approved by the ACC) may be used.

8.04.4 Storage of Materials: Clean-Up. No building materials of any kind or character shall be placed or stored upon any Lot more than thirty days before construction is commenced. Except as otherwise permitted by the ACC, all materials permitted to be placed on a Lot shall be placed within the boundaries of the Lot. Upon completion of construction, any unused: materials shall be promptly removed from the Lot and the Subdivision and in any event not later than thirty days after construction is completed.

8.04.5 Landscaping. All initial landscaping installed on any Lot must be in accordance with the plans and specifications therefor approved by the ACC,

than thirty days after construction is completed.

8.04.5 Landscaping. All initial landscaping installed on any Lot must be in accordance with the plans and specifications therefor approved by the ACC, 8.04.6 - Driveways. Each Lot must contain a driveway or other means of ingress and egress for vehicles from the garage to the abutting drive or street. All driveways must be constructed of concrete or concrete pavers, or as otherwise approved by the ACC. All driveways . which cross any drainage ditch or other drainage device must be constructed to keep the drainage ditch or other drainage device clear of obstructions to operation and maintenance, and in accordance with applicable provisions of Section 8.04.8 regarding drainage and requirements of the County. The provisions of Section 9.03 regarding encroachments applies to driveway approaches and inturns. DRIVEWAY APPROACHES AND INTURNS AS TO EACH LOT MAY (AND PROBABLY WILL) ENCROACH AS TO THE ADJOINING LOT.

8.04.7 Exterior Materials. The exterior wall areas of each residence, excluding gables, windows and door openings, must be covered with brick or stucco.

8.04.8 Drainage.

(a) Drainage Devices. During the Development Period Declarant is hereby specifically authorized to excavate as necessary for and to establish, construct and maintain drainage swales, erosion control systems and such other things and devices (herein referred to as "Drainage Devices") upon, over, across or under any part of the Subdivision, including any Lot, as Declarant deems appropriate to properly maintain and control water drainage and erosion. Declarant may also authorize any Builder of the initial single family residence on any Lot to establish, construct and maintain Drainage Devices as

rly maintain and control water drainage and erosion. Declarant may also authorize any Builder of the initial single family residence on any Lot to establish, construct and maintain Drainage Devices as aforesaid. Declarant hereby reserves for itself and authorized builders a blanket easement upon, over, under and across the Subdivision, including each Lot, for purposes of establishment, DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 57 construction and maintenance of Drainage Devices as aforesaid; provided, such easement may not be exercised and no Drainage Device may be established, constructed or maintained in any manner as to encroach upon the foundation or any other part of any single family residence or its appurtenant garage. Declarant may designate any Drainage Devices as part of the Subdivision Facilities in which case same shall be maintained by the Association. Otherwise, all Drainage Devices shall be maintained by the Owners as hereafter provided. THE FOREGOING SHALL NOT BE CONSTRUED TO OBLIGATE DECLARANT OR ANY AUTHORIZED BUILDER TO ESTABLISH, CONSTRUCT OR MAINTAIN ANY DRAINAGE DEVICES OF ANY TYPE OR_ KIND WHATSOEVER, AND ANY REPRESENTATION, WARRANTY OR IMPLICATION AS TO SAME IS HEREBY SPECIFICALLY DISCLAIMED.

(b) Owner Obligations. Once established and for so long as continued maintenance thereof is reasonably necessary, all Drainage Devices shall remain unobstructed, and shall be properly maintained by each Owner of each Lot to which same pertains. Each Owner must refrain from permitting any construction, grading and any other work, act or activity upon such Owner's Lot which would obstruct, alter, divert, impede or impair the proper functioning of any Drainage

refrain from permitting any construction, grading and any other work, act or activity upon such Owner's Lot which would obstruct, alter, divert, impede or impair the proper functioning of any Drainage Device. In addition, each Owner must perform such work, act or activities and install and maintain such Drainage Devices (i) as is reasonably necessary to prevent so far as practical drainage front the Owner's Lot to any other Lot, other than drainage along established swales and along drainage patterns as established by Declarant during the Development Period or the ACC thereafter, and (ii) as needed to maintain so far as practical positive drainage away from the foundation of the residence located upon the Owners Lot.

Without limitation of the foregoing, no Owner may place or permit placement of any flower bed or other landscaping, or any other structure or thing along or near any Lot line which would obstruct, alter, divert, impede, or impair drainage along any Lot line within any swale or otherwise within drainage patterns as established by Declarant during the Development Period or by the ACC thereatter.

To obtain and maintain proper drainage, including as required by this Section, and/or as changing circumstances may require, the Architectural Control Committee is hereby specifically authorized to require any Owner to construct, install and maintain such gutters and/or downspouts, drains, drainage lines and any other Drainage Devices as the ACC determines, and/or to remove any obstruction, thing or device or cease any activity, either upon initial construction of any residence or other improvement, or at any time thereafter that circumstances reasonably require.

8.04.9 Garage Height. No garage may exceed in height the dwelling to which it is

al construction of any residence or other improvement, or at any time thereafter that circumstances reasonably require.

8.04.9 Garage Height. No garage may exceed in height the dwelling to which it is DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 58 appurtenant.

8.04.10 Painting of Frame Construction. No structure of any kind or character which incorporates frame construction on the exterior may be erected on any Lot unless such structure receives at least two coats of paint at the time of construction or the exterior is redwood or cedar material.

8.04.11 Roof Materials. Roofs of all residences must be constructed so that the exposed material is slate, tile, or dimensional/architectural type composition shingles, or such other material which is compatible in quality and appearance to the foregoing as may be approved by the ACC. Wood shingles of any type are prohibited on any residence, building or structure.

8.04.12 Gutters and Downspouts. Adequate guttering must be installed around roof lines and downspouts must be installed to promote drainage in accordance with Section 8.04.8.

8.04.13 Pre-Fabricated Homes Prohibited. No mobile homes, modular homes, manufactured home or similar pre-fabricated residential structures of any kind is permitted upon any Lot.

8.04.14 Mailboxes, To the extent mail service is provided in mailbox banks as permitted by Section 9.06.1 of the Declaration, Owners must exclusively use their assigned mailbox therein and shall strictly comply with all applicable rules and regulations of the United States Postal Service and the Association. Otherwise, one mailbox must be maintained at all times upon each Lot, and the mailbox must be properly maintained at all times to accommodate regular

United States Postal Service and the Association. Otherwise, one mailbox must be maintained at all times upon each Lot, and the mailbox must be properly maintained at all times to accommodate regular reception of mail in accordance with applicable rules and regulations of the United States Postal Service and the Association. Installation and any subsequent modification of a mailbox and post or other housing for same on each Lot must be approved by the ACC. All mailboxes must be either mounted on a black metal post with a black painted finish (or as otherwise approved), or installed in a mailbox type housing constructed of brick which matches the applicable residence, as ~ approved by the ACC. All mailboxes, and the mounting post or housing for same, must be properly maintained at all times, including maintenance as needed to avoid any leaning or listing, periodic cleaning and painting, and, as needed, repair or replacement of damaged or deteriorated mailboxes, posts and/or housing.

8.04.15 Compliance with Laws. All construction of any single-family residence must be in compliance with applicable governmental laws, ordinances and regulations, including applicable building codes or permit or licensing requirements.

SECTION 8.05 Metal Buildings or Structures Prohibited. Subject to Sections 8.06 and 11.07, no metal buildings of any kind are permitted anywhere within the Subdivision. The foregoing shall not prohibit incorporation of metal components in permitted buildings (such as stairs and studs) as approved by the ACC.

SECTION 8.06 Temporary Structures; Sales Office. Temporary buildings or structures shall .

not be permitted on any Lot; provided, the Board may permit (and shall not unreasonably withhold

by the ACC.

SECTION 8.06 Temporary Structures; Sales Office. Temporary buildings or structures shall .

not be permitted on any Lot; provided, the Board may permit (and shall not unreasonably withhold or delay approval for) temporary toilet facilities, sales and construction offices and storage areas to be used in connection with the construction and sale of residences at such locations as the Board DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 59 may direct, and may authorize usage of garages as sales offices during the Development Period.

During all times when a garage is used as a sales office, as aforesaid, there must be posted a conspicuous sign in such garage advising prospective purchasers that the area must be reconverted to and thereafter maintained as a garage upon the sale of the Lot. At the time of the sale of a residence, any garage appurtenant to any residence used for sales purposes must have been reconverted to a garage.

SECTION 8.07 Lot Resubdivision or Combination. Unless approved by Declarant in writing, no Lot as originally conveyed by Declarant to any Person, including a Builder, may thereafter be subdivided or combined with any other Lot, or the boundaries thereof otherwise changed.

SECTION 8.08 Window and Door Glass Covers. Glass in windows, doors and other similar openings must be maintained as installed during original construction except as otherwise permitted in writing by the ACC. Glass film and similar tinting, and aluminum foil and similar reflective materials, are in all events -prohibited for use as a cover for any window or door, provided, factory tinted glass may be approved by the ACC. Only blinds, curtains or drapes which

similar reflective materials, are in all events -prohibited for use as a cover for any window or door, provided, factory tinted glass may be approved by the ACC. Only blinds, curtains or drapes which are white or off-white are permitted unless prior written approval of the ACC is obtained.

SECTION 8.09 Fencing Prohibited.

8.09.1 Definitions. As used in this section (i) "Fencing" means any and all fences and freestanding fence type walls, gateposts, hedges and planters, whenever and wherever located on any Lot, and (ii) "hedge" means a row of bushes, shrubs and similar plants which, at natural maturity, will exceed three feet (3°) in height and have sufficiently dense foliage as to present a visual and physical barrier substantially similar to a fence.

8.09.2 _ Prohibition, Fencing of any kind is prohibited at any location in the Subdivision. The foregoing does not apply to perimeter fencing which encloses the Subdivision or other Fencing which is constructed and/or maintained by the Association.

SECTION 8.10 Antenna and Satellite Dish Systems.

8.10.1 General Rule. Except as otherwise expressly approved by the ACC in writing, or as otherwise expressly permitted by applicable architectural guidelines or by law, no antenna or satellite dish system of any kind is permitted upon any Lot, or the residence or other improvement thereon, except one dish antenna, one meter or less in diameter or diagonal measurement which is designed to receive direct broadcast satellite or to receive or transmit "fixed wireless signals" (as defined by the Federal Communications Commission), and one television antenna to the extent necessary for reception of local television broadcasts, either or both of which must be installed so

ls" (as defined by the Federal Communications Commission), and one television antenna to the extent necessary for reception of local television broadcasts, either or both of which must be installed so as not to be visible from any street. The initial antenna and satellite dish system guidelines will be adopted by the initial Board of Directors at its organizational meeting (or pursuant to a unanimous consent signed in lieu thereof).

8.10.2 Prohibited Antenna. In no event shall any antenna, "dish" or other device be used for transmitting electronic signals of any kind except as to fixed wireless signal transmission as above provided. Antenna and similar devices of any type used for citizen band ("CB") radio, amateur ("HAM") radio, AM/FM radio, or Digital Audio Radio Service ("OARS"), are prohibited DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 60 and shall be erected, placed or permitted to remain on any Lot, on any improvement located on any Lot, or elsewhere in the Subdivision. Without limitation, as to the authority of the Board to grant variances, the Board is specifically authorized to (but shall not in any event be required to) grant variances as to prohibited antenna, and the Board may condition granting of any such variance upon placement of the applicable antenna in the attic of a residence.

SECTION 8.11 Signs.

8.11.1 General. No signs, billboards, posters, banners, pennants or advertising devices of any kind, including without limitation business, professional, promotional or institutional signs, are permitted on any Lot, or upon any residence, or within any residence invisible from the exterior of the residence, or within the Subdivision without the prior written

ional or institutional signs, are permitted on any Lot, or upon any residence, or within any residence invisible from the exterior of the residence, or within the Subdivision without the prior written consent of the ACC except as otherwise provided in this Section. The Board or ACC may remove or cause to be removed any sign, billboard, poster, banner, pennant or advertising device of any kind which is not approved as aforesaid or is otherwise prohibited under this Declaration or other Governing Documents and may dispose of same as debris without liability for trespass, conversion or otherwise.

8.11.2 Prohibited Signs. No sign is permitted which is vulgar, obscene or otherwise patently offensive to persons of ordinary sensibilities. Permitted signs must be professionally.

printed and prepared, and must be properly installed and maintained, to avoid unsightly appearance. The good faith determination of the Board or ACC as to any of the foregoing is final.

No sign is permitted to be larger than four square feet. No sign may be illuminated. No sign may be placed on any Lot closer than ten feet from any street or any side or back Lot line, or within any traffic sight line area as defined in Section 8.14. No Owner, Owner's tenant or their Related Parties, is permitted to place any sign on another Owner's Lot or upon any Community Properties.

Distressed, foreclosures and bankruptcy references are specifically prohibited.

8.11.3 Permitted Signs: Size Limitation. To the extent required by law or in any event upon prior approval of the ACC, but subject to applicable provisions of Section 8.11.1, each Owner is permitted to place upon (and only upon) such Owner's Lot (i) one sign advertising the

in any event upon prior approval of the ACC, but subject to applicable provisions of Section 8.11.1, each Owner is permitted to place upon (and only upon) such Owner's Lot (i) one sign advertising the particular Lot on which the sign is located for sale or for rent, but only during periods of time when the Lot is in fact for sale or for rent, and (ii) "political signs" whereby such Owner is promoting a political candidate, party or issue. Except as- otherwise approved by the ACC, no more than two political signs are permitted per Lot, and political signs regarding any election or vote may not be placed on any Lot more than forty-five days before the election or vote and must be removed within five days after the election or vote. The ACC may also reasonably regulate the period(s) of time political signs which do not pertain to an election or vote may be permitted. Declarant or the ACC may (but are not obligated to) allow builders within the Subdivision to construct and maintain such signs, billboards, banners, pennants, and advertising devices as are customary in connection with the sale of newly constructed residential dwellings. EXCEPT FOR BUILDER SIGNS AS AFORESAID NO SIGN IS PERMITTED WHICH IS LARGER THAN THREE SQUARE FEET.

SECTION 8.12 Tree Removal. No living tree with a trunk diameter of six inches or greater shall be cut down or removed from any Lot without the prior written approval of the ACC except for trees within the footprint of a single family residence to be constructed on the Lot or within five feet thereof. Dead or damaged trees which may create a hazard to property or persons within DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 61

feet thereof. Dead or damaged trees which may create a hazard to property or persons within DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 61 the Subdivision must be promptly removed or repaired at the Owner's expense.

SECTION 8.13 Traffic Sight Line Areas, No fence, wall, hedge, tree, shrub planting or any other thing or device which obstructs sight lines at elevations between two and eight feet (2' & 8') above a street shall be permitted on any comer Lot within the triangular area formed by the two (2) boundary lines thereof abutting the street and a line connecting them at points twenty-five feet (25’) from their intersection, or within the triangular area formed by the boundary line abutting a street, the edge line of any driveway pavement and a line connecting them at points ten feet (10') from their intersection.

SECTION 8.14 Utility. Lighting and Energy Facilities.

8.14.1 Maintenance Of Utilities Required. All utility services intended to be provided to each single-family residence as originally constructed, including without limitation water, sewage, electric and gas services, must be maintained by the Owner at all times when a residence is occupied.

8.14.2 Private Utility Lines. All electrical, telephone and other utility lines and facilities which are located on a Lot and which are not owned and maintained by a governmental entity or a utility company must be installed underground unless otherwise approved in writing by the ACC, and must be maintained at all times by the Owner of the Lot upon which same is located.

8.14.3 Air Conditioners. Except as approved by the ACC, no window, wall or exterior roof mounted type air conditioners or heating units, or any part thereof, and no ait

Lot upon which same is located.

8.14.3 Air Conditioners. Except as approved by the ACC, no window, wall or exterior roof mounted type air conditioners or heating units, or any part thereof, and no ait conditioners or heating units, or any part thereof’; which is visible from any street will be permitted.

8.14.4 Exterior Lighting. Excepting customary Christmas lighting, any exterior lighting of a residence or Lot must be approved by the ACC in accordance with Article IV. No exterior lighting (including Christmas lighting) may be directed outside property lines of the Lot upon which same is located. All lighting fixtures (except Christmas lighting) must be compatible in style and design to the residence where located. Christmas lighting and related decorations and ornamentation may be displayed between November 15 and January 10, and the ACC may in particular instances or through Architectural Guidelines permit other holiday lighting, decorations and ornamentation (all of which for purposes of this Section are referred to as "Christmas lighting"); provided, the ACC is authorized to fully regulate all Christmas lighting in particular instances or by Architectural Guidelines to avoid any annoyance, nuisance, safety hazard or unsightly condition or appearance as determined in the sole opinion of the ACC.

8.14.6 Solar and Other Energy Devices. No solar energy collector panels or attendant: hardware or other similar equipment is permitted upon any portion of the Subdivision, including any Lot and/or residence located thereon, without the prior written consent of the ACC.

Any such installation shall be in harmony with the design of the residence, and such that the device is not visible from any street. Windmills, wind generators and other apparatus for generating power

Any such installation shall be in harmony with the design of the residence, and such that the device is not visible from any street. Windmills, wind generators and other apparatus for generating power from the wind are prohibited.

SECTION 8.15 Pools Prohibited. Pools of every kind, whether in ground or above ground, are prohibited upon any Lot.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 62 SECTION 8.16 Artificial Vegetation, Exterior Sculpture, and Similar Items. Artificial vegetation, exterior sculpture, fountains, flags and temporary flagpoles (excepting state and United States flags maintained and excluded in accordance with applicable Architectural Guidelines), birdhouses, birdbaths and other decorative embellishments or similar items are prohibited at any location upon a Lot which is visible from any street or at ground level from another Lot except with the prior written approval of the ACC obtained as provided in Article IV.

SECTION 8.17 Irrigation. No sprinkler or irrigation systems of any type which draw upon water from creeks, streams, riven, lakes, ponds, canals or other ground or surface waters shall be installed, constructed or operated upon any Lot or elsewhere in the Subdivision. Private irrigation wells are prohibited upon any Lot. Sprinkler and irrigation systems installed as Subdivision Facilities will be maintained by the Association; No other sprinkler or irrigation system may be installed upon any Lot or elsewhere in the Subdivision except with the prior written consent and approval of the ACC obtained as provided in Article IV.

SECTION 8.18 Excavation. The digging of dirt or the removal of any dirt from any Lot is

he Subdivision except with the prior written consent and approval of the ACC obtained as provided in Article IV.

SECTION 8.18 Excavation. The digging of dirt or the removal of any dirt from any Lot is expressly prohibited except upon written approval of the ACC as may be necessary in conjunction with the landscaping of or construction on such Lot.

Article IX Easements SECTION 9.01 Incorporation of Easements. All easements, dedications, limitations, restrictions and reservations shown on any Plat and all validly existing grants and dedications of easements and related rights heretofore made or here after established as herein provided affecting the Subdivision or any Lots and filed in the Official Public Records of Real Property of Montgomery County, Texas, are incorporated herein by reference and made a part of this Declaration for all purposes as if fully set forth herein, and shall be construed as being adopted in each and every contract, deed or conveyance executed or to be executed by any Person covering any portion of the Subdivision, including any Lot. In the event of any conflict between any of the foregoing filed after the date of filing of this Declaration and any provisions of this Declaration, the provisions of this Declaration control. The foregoing shall not be construed as in any manner giving effect to any instrument of record other than in accordance with the instrument and applicable law.

SECTION 9.02 Owner's Easements for Use and Enjoyment. Every Owner of a Lot has a right and easement of ingress and egress, use and enjoyment in and to the Community Properties which is appurtenant to and passes with the title to the Lot, subject to the following provisions: 9.02.1 Usage Control. The Board has a continuing right to: (i) establish, install,

mmunity Properties which is appurtenant to and passes with the title to the Lot, subject to the following provisions: 9.02.1 Usage Control. The Board has a continuing right to: (i) establish, install, maintain, operate and regulate a limited access gate or gates and such other security oriented systems, devices, and procedures as it may determine; (ii) issue, charge for, and require as a condition of entry to the Subdivision and/or Community Properties such identification cards, passes, keys, or similar devices as the Board may from time to time determine; (iii) limit the ‘number of guests of Lot Owners and their tenants who may use the Community Properties; (iv) provide for the exclusive use and enjoyment of specific portions of the Community Properties at certain designated times by an Owner, his family, and the Owner's tenant, and the guests or invitees A ———————— DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 63 of either, and (v) charge reasonable admission and other fees for the use of any portion of the Community Properties, including any Subdivision Facilities.

9.02.2 Suspension of Usage Rights. The Board has a continuing right, upon notice and opportunity to be heard, to suspend the right of an Owner, and the Owner's tenant, and the Related Parties of either, to use all or any part of the Community Properties and/or Subdivision Facilities for any breach, violation or infraction of this Declaration or other Governing Documents until all such breaches, violations and infractions are cured. The provisions of this Section may not be construed to permit any limitation of ingress or egress to or from any Lot.

SECTION 9.03 Easements for Encroachment and Overhang. In the event of encroachment

The provisions of this Section may not be construed to permit any limitation of ingress or egress to or from any Lot.

SECTION 9.03 Easements for Encroachment and Overhang. In the event of encroachment by any building, structure or other improvement, including without limitation, any portion of any roadway, walkway, parking area, driveway, water line, sewer line, utility line, sprinkler system, building steps, fences, fireplaces, chimneys, bay windows and similar architectural details, paving, driveway approaches and inturns, decking, footings, piers, piles, grade beams and similar improvements, which encroachment originates during original construction or results at any time from settling or shifting, on or into any adjoining Lot or on or into the Community Properties, not more than thirty inches (30") from any point on the common lot line ("Encroachment"), it shall be deemed that the Owner of the Lot encroached upon (or into) or the Association (as the case may be) has granted a perpetual easement for continuing maintenance and use of such encroaching improvements, and for maintenance, repair or replacement thereof if performed in substantial compliance with the original construction, over, above, under, and upon the adjoining, encroached upon Lot (or Community Property) for a distance co-existent with the Encroachment. An "Encroachment" as aforesaid includes, without limitation, overhead encroachments and overhangs of walls, roofs or other part of any building or structure, and encroachments which are completely underground. In addition, any such Encroachment is permitted to extend over any otherwise applicable setback line up to thirty inches (30") when the Encroachment originates during original

completely underground. In addition, any such Encroachment is permitted to extend over any otherwise applicable setback line up to thirty inches (30") when the Encroachment originates during original construction or results at any time from settling or shifting as aforesaid. The term “original construction" as used in this Section means construction, placement or modification of improvements which occurs through "completion of the initial sale" of a Lot as that phrase is defined in Section 11.03.

SECTION 9.04 Owners' Access Easement.

9.04.1 Defined. Each Lot and the Community Properties are subject to a non-exclusive access easement for the construction, maintenance, repair and replacement of improvements located upon any adjacent Lot (the "Accessing Lot") for usage by an Accessing Lot Owner or occupant, or their agents or employees. The Lot or Community Properties being accessed is herein referred to as the "Easement Lot". This access easement area on the Easement Lot (the "Access Area") consists of a strip of land abutting the nearest boundary line of the Accessing Lot of not less than three feet nor more than six feet, as may be reasonably required, and to such additional area as may be approved in writing by the Board upon written request stating a reasonable necessity for same. THIS ACCESS EASEMENT AREA MAYBE UTILIZED ONLY WHEN AND TO THE EXTENT SAID CONSTRUCTION, MAINTENANCE, REPAIR OR REPLACEMENT CANNOT BE REASONABLY CONDUCTED WITHIN THE BOUNDARIES OF THE ACCESSING LOT. Except in the case of an Emergency, in no event will such easement extend to any part of the single-family residence garage, or other building located on the Easement Lot, ee DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 64

art of the single-family residence garage, or other building located on the Easement Lot, ee DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 64 9.04.2 Notice: Duration. Prior to use of the Access Area, the Owner or occupant of the Accessing Lot must give written notice of intent to utilize the Access Area stating therein the nature of intended use and the duration of such usage. Such notice must be delivered to the Owner or occupant of the Easement Lot by regular or certified mail or personal delivery, or by attaching same to the front door of the residence located upon the Easement Lot. If by mail, such notice must be given at least ten business days prior to use of the Access Area; and if by personal delivery or affixing to the front door, such notice must be given at least five business days prior to use of the Access Area. In case of Emergency the Accessing Lot Owner or occupant may commence and continue usage of the Access Area without giving the foregoing notice for so long as is reasonably necessary to control the Emergency and complete work necessitated thereby, but must proceed with giving of the required notice as soon as practical after commencement of usage.

If made by an Owner or occupant, the determination that an Emergency exists is the sole responsibility of such Owner or occupant who are solely liable as to same.

9.04.3 Usage. Usage of the Access Area is limited to the minimum reasonable amount of time and area required to complete necessary work to preserve, protect, construct, maintain, repair, and replace the residence or other structures and improvements located on the Accessing Lot.

Work during the usage period must be conducted in such manner as to minimize so far as

t, maintain, repair, and replace the residence or other structures and improvements located on the Accessing Lot.

Work during the usage period must be conducted in such manner as to minimize so far as reasonably possible inconveniences and disruptions to the Easement Lot and its occupants. Except in case of emergency or unless otherwise authorized by the Owner or occupant of the Easement Lot, work during the usage period may not be conducted during legal holidays or any Sunday and must otherwise be confined to the hours of 7:00 a.m. to 7:00 p.m., Monday through Friday and 9:00 a.m. to 6:00 p.m. on Saturdays.

9.04.4 ACC Approval of Access Area Improvements. No structure or improvements other than grass, and customary, non-exotic flower and shrubbery beds, may be placed within the Access Area at any time without the prior written approval of the ACC. The ACC may not approve any such structures or improvements which would substantially interfere with, or be unduly burdensome to, or which would cause excessive expense to any potential Accessing Lot if access becomes necessary as herein provided.

9.04.5 Restoration. Promptly after completion of usage of an Access Area, the Accessing Lot Owner or occupant must thoroughly clean the Access Area and repair and restore same to substantially the same condition that existed at the time of commencement of usage; provided, such obligation for restoration does not apply to any structures or improvements which have been placed in the Access Area without written ACC approval. At the time of receipt of notice the Easement Lot Owner or occupant must promptly notify the Accessing Lot Owner or occupant as provided in Section 9.04.2 of any structures or improvements within the Access Area which have been approved by the ACC.

t Owner or occupant must promptly notify the Accessing Lot Owner or occupant as provided in Section 9.04.2 of any structures or improvements within the Access Area which have been approved by the ACC.

SECTION 9.05 . Association and ACC Blanket Access Easement. The Board and the ACC, and their Related Parties, have a continuing non-exclusive easement upon, over, under and across each Lot, and as to the exterior of the residence and garage thereon, and as to the exterior and interior of any other improvement thereon, to the extent reasonably necessary for the performance of any of the functions or duties of the Association or ACC or exercise of any of their rights under this Declaration. Prior to exercise of such easement rights written notice must be given to the Owner or occupant of the affected Lot stating the expected date of commencement of usage, the DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 65 nature of the intended use and anticipated duration of such usage. The notice may be given either as permitted in Article XII hereof, or by affixing the notice to the front door of the residence on the applicable Lot. The notice must be given at least ten days before the expected date of commencement of usage. In case of an emergency the right of entry and usage shall be immediate without notice, but in such case notice as aforesaid shall be given as reasonable soon as practicable.

SECTION 9.06 Governmental Functions, Utilities and Other Services.

9.06.1 Governmental Functions; Removal of Obstructions. Blanket non-exclusive easements and rights-of-way are hereby granted to the County and other governmental authorities, to all police, fire protection, ambulance and other emergency vehicles, to garbage and trash

-exclusive easements and rights-of-way are hereby granted to the County and other governmental authorities, to all police, fire protection, ambulance and other emergency vehicles, to garbage and trash collection vehicles and other service vehicles, to the United States Post Office and similar services, and to the respective agents and employees of all of the foregoing. for access, ingress and egress upon, over and across any portion of each Lot and throughout the Subdivision for purposes of the performance of any official business without liability of any kind. THE COUNTY AND OTHER GOVERNMENTAL AUTHORITIES AS AFORESAID ARE ALSO SPECIFICALLY AUTHORIZED TO REMOVE OBSTRUCTIONS IF NECESSARY FOR EMERGENCY AND SERVICE VEHICLE ACCESS, AND TO ASSESS THE COST OF REMOVAL TO THE OWNER OF THE OBSTRUCTION.

9.06.2 Mail Box, Water and Electrical Meter Banks. During the Development Period, Declarant may establish exclusive and perpetual easements for the placement and maintenance of mail box banks, water meter banks and/or electrical meter banks designed to service two or more single family residences upon any Lot or elsewhere within the Subdivision, including entry, access and exit areas as to same; provided, any such banks on a Lot must be placed on the Lot prior to completion of the initial sale of the Lot (as defined in Section 11.03).

9.06.3 Utilities.

(a) Easements as shown on an applicable recorded Plat and rights of entry to them for installation, maintenance and operation of utilities and drainage facilities are reserved. Within the easements, no structure, planting or other materials shall be placed or permitted to remain which may damage or interfere with the installation, maintenance or operation of utilities. The easement areas of each Lot and all improvements therein

materials shall be placed or permitted to remain which may damage or interfere with the installation, maintenance or operation of utilities. The easement areas of each Lot and all improvements therein or thereon shall be maintained by the Owner of the Lot, except those improvements of a public authority or utility which shall be maintained by such authority or utility. The title to a Lot shall not include title to any utility facilities located within easements or streets. No public utility, shall be liable for damage to any plants, structure or buildings located in or on such easements or streets because of the installation or maintenance of the utility facilities.

(b) In addition to all other applicable easements as established herein or by any Plat, a private non-exclusive easement is hereby granted under any private street located within the Subdivision for purposes of erecting, installing, operating, maintaining, replacing, inspecting and removing any electrical, water, sewer, gas, cable television and any other utilities’ DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 66 as determined by the Board, together with rights of ingress and egress to or from any such easement. This easement shall not include by implication or otherwise any appurtenant aerial easement.

9.06.4 A/C Condensing Units, Declarant may approve placement of air conditioner condensing units and related pads, wiring, conduits and devices (an "A/C Unit") along the Zero Lot Line of a residence in such manner that the A/C Unit encroaches on an adjoining Lot, adjoining non-commercial reserve subject to Association control or adjoining Community Properties to a

the Zero Lot Line of a residence in such manner that the A/C Unit encroaches on an adjoining Lot, adjoining non-commercial reserve subject to Association control or adjoining Community Properties to a distance of not more than thirty-six inches (36"). In such case, it shall be deemed that the Owner of the encroached upon property, including the Association, has granted a perpetual easement for continuing maintenance of the A/C Unit(s) thereon, and for maintenance, repair and replacement of the A/C Unit(s) in substantial compliance with the original installation of the A/C Unit(s). The A/C Unit(s) may also be enclosed by property line fencing around the part(s) of the A/C Unit(s) which extend over the Lot line in such manner as may be approved by Declarant or the ACC.

Declarant or the ACC may also prohibit fencing along the common boundary line along which one or more A/C Units encroach, and/or limit fencing to enclosure at the front and back of the residence starting the common boundary line (with gates). . .

9.06.5 Changes and Additions, At the sole election of Declarant during the Development Period and the Board thereafter, the Association shall have the right to grant, dedicate, reserve or otherwise create, at any time or from time to time, easements for public, quasipublic or private utility purposes, including, without limitation, gas, electricity, telephone, sanitary or storm, cable television and similar services, along, over, above, across.and under the Subdivision and any Lot; provided, such additional easements shall not be located in such manner as to encroach upon the footprint or foundation of any then existing building (including any residence) or any swimming pool. Any such easement shall not be effective unless and until notice

ch manner as to encroach upon the footprint or foundation of any then existing building (including any residence) or any swimming pool. Any such easement shall not be effective unless and until notice thereof is filed in the Official Public Records of Real Property of Montgomery County, Texas.

SECTION 9.07 Egress/Regress to Public Way Required. All single-family residences shall be constructed, and thereafter same and related improvements shall be maintained, such that a continuous and unobstructed means of egress and regress to a common public way is maintained in accordance with applicable building codes and ordinances of the County.

SECTION 9.08 Title to Easements and Appurtenances Not Conveyed. Title to any Lot conveyed by contract, deed or other conveyance may not be held or construed in any event to include the title to any easement established by this Article IX, including but not limited to any roadways or any drainage, water, gas, sewer, storm.sewer, electric light, electric power, telegraph or telephone way or any pipes, lines, poles, or conduits on or in any utility facility, service equipment or appurtenances thereto.

SECTION 9.09 Reserve Easements. Declarant and only Declarant may, during the Development Period, grant as appurtenant to any Lot usage easements covering any noncommercial reserves designated by a Plat which abuts a Lot on such terms as Declarant shall determine, including perpetual usage easements but subject in any event to all applicable building codes and ordinances or requirements of the County or State of Texas and to all other easements which have or may be granted under this Declaration. The Owner of the Lot to which any such easement is appurtenant shall be solely liable and responsible for all costs of maintenance of and

easements which have or may be granted under this Declaration. The Owner of the Lot to which any such easement is appurtenant shall be solely liable and responsible for all costs of maintenance of and payment (by reimbursement to Declarant or the Association or direct payment) of all property and DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 67 other taxes covering the entire easement area during the full term of the easement, and shall be solely liable for damages or otherwise regarding the easement area and any usage thereof by any Person and shall indemnify and hold Declarant and the Association harmless regarding same to the fullest extent provided herein (including as provided in Section 3.06).

SECTION 9.10 Easements Perpetual. Easement rights established by or obtained pursuant to this Article IX may not, once established or obtained, be adversely effected by any amendment of this Declaration. The foregoing does not limit subsequent abandonment or other modification of easement rights in accordance with applicable instruments covering any easement, by consent or agreement of the affected parties, or as otherwise provided by law.

Article X Enforcement SECTION 10.01 Strict Compliance Required, Each Owner and each Owner's tenants, by acquisition of any right, title or interest in any Lot, covenant and agree to be bound by and to strictly comply with all restrictions, covenants, conditions and easements set forth in this Declaration and all other Governing Documents as same may from time to time or at any time be hereafter amended. .

SECTION 10.02 Enforcement.

10.02.1 General. The Association, its successors and assigns, and any Owner have

her Governing Documents as same may from time to time or at any time be hereafter amended. .

SECTION 10.02 Enforcement.

10.02.1 General. The Association, its successors and assigns, and any Owner have the right to enforce observance and performance of all restrictions, covenants, conditions and easements set forth in this Declaration and in other Governing Documents, and in order to prevent a breach thereof or to enforce the observance or performance thereof have the right, in addition to all legal remedies, to an injunction either prohibitive or mandatory.

10.2.2 Verification of Defaults. Without notice of any kind, the Declarant, the Board, the ACC, or any of their Related Parties, may photograph any violations or suspected violation at any time and otherwise obtain evidence to confirm the existence or non-existence of any suspected violation in any reasonable manner without liability in trespass or otherwise.

10.02.3 No Estoppel. Waiver or Liability. Failure of the Association or any Owner to enforce any of the provisions of this Declaration or any other Governing Documents will in no event be deemed a waiver of the right to do so thereafter (including without limitation as to the same or similar violation whether occurring prior or subsequent thereto). No liability may attach to the Association, or its officer, Directors, agents, employees or committee members, for failure to enforce any provisions of this Declaration or any other Governing Documents.

10.02.4 Cumulative Rights and Remedies. Each right and remedy set forth in this Declaration and any other Governing Documents is separate, distinct and non-exclusive, and all are cumulative. The pursuit of any right or remedy so provided for or by law shall be without

rth in this Declaration and any other Governing Documents is separate, distinct and non-exclusive, and all are cumulative. The pursuit of any right or remedy so provided for or by law shall be without prejudice to the pursuit of any other right or remedy, and the failure to exercise any particular right or remedy shall not constitute a.waiver of such right or remedy or any other right or remedy.

SECTION 10.03 Liability for Conduct of Others ("Related Parties"), Each Owner and the tenant of each Owner must ensure that their respective Related Parties strictly comply with all DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 68 applicable provisions of this Declaration and all other Governing Documents, Each Owner is liable for all consequences of any such violation by the Owner's tenant and by Related Parties of the Owner, and each Owner and the Owner's tenant are jointly and severally liable for all consequences of any such violation by Related Parties of the tenant. To the same extent as aforesaid each Owner and each tenant must indemnify and hold harmless the Association and its Related Parties from any and all claims, liabilities, damages, loss, costs, expenses, suits and judgments of whatsoever kind, including reasonable attorney's fees whether incurred prior to, during or after proceedings in a court of competent jurisdiction, made or asserted by Related Parties of the Owner or the Owner's tenants as provided in Section 10.04.

SECTION 10.04 Obligation for Payment of Costs and Expenses Resulting from Violations.

Each Owner and tenant of an Owner found to have committed or who is responsible for, a violation ot violations of any of the provisions of this Declaration or any other Governing Documents, is

ations.

Each Owner and tenant of an Owner found to have committed or who is responsible for, a violation ot violations of any of the provisions of this Declaration or any other Governing Documents, is jointly and severally liable for payment to the Association for, and to indemnify and to hold and save harmless the Association and its Related Parties from, any and all claims, liabilities, damages, loss, costs, expenses, suits and judgments of whatsoever kind, including reasonable attorney's fees whether incurred prior to, during or after proceedings in a court of competent jurisdiction, incurred or attributable to any such violation(s), and must pay over to the Association all sums of money which the Association or its representatives may pay or become liable to pay as a consequence, directly or indirectly, of such violation(s), All such Sums are assessed as a specific assessment, and are secured by the continuing lien established by Article V hereof. All such sums are due and payable upon demand by the Association or its representative without the necessity of any other or further notice of any act, fact or information concerning the Association's rights or such Owner's or their tenant's liabilities under this Section; provided, in the case of indemnification the demand shall contain a statement setting forth the Association's payment or liability to pay the claim with _ sufficient detail to identify the basis for the payment or liability to pay.

SECTION 10.05 Notice and Opportunity to be Heard. Whenever this Declaration or other Governing Documents require "notice and opportunity to be heard," the procedures set forth in this Section must be observed.

10.05.1 Notice of Violation. The party proposing to take the action (such as the

ning Documents require "notice and opportunity to be heard," the procedures set forth in this Section must be observed.

10.05.1 Notice of Violation. The party proposing to take the action (such as the Board, a committee, the Managing Agent, etc.) must give written notice of violation to the Owners and, if applicable, to the Owner's tenants according to the records of the Association (the "Affected Parties"). The notice must include (i) a general description of the matters complained of, (ii) all curative action requested and a time period within which curative action must be completed, and (iii) a statement advising that the Affected Parties are entitled to a hearing upon delivery of a written request in accordance with Section 10.05.2 of this Declaration.

10.05.2 Time to Cure: Response. A notice of violation must allow at least ten days from the date of the notice within which to complete the curative action thereby required and to request a hearing. The ten-day period to cure may be shortened in the case of an Emergency. The Affected Parties may request a hearing only in writing and only by also stating in the request each claim or other matter which is disputed or contested and a general description of the basis for the dispute or contest. If no hearing is requested in writing as aforesaid it is presumed the Affected Parties do not dispute any matters set forth in the notice of violation.

10.05.3 Hearing. If a hearing is requested in writing as above set forth, all Affected ee DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 69 Parties so requesting the hearing must be given written notice of the date, time and place for the

ATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 69 Parties so requesting the hearing must be given written notice of the date, time and place for the hearing. At the hearing, the Affected Parties have the right, personally or by a representative, to give testimony orally, in writing or both, and to present such other relevant evidence as they may choose, subject to reasonable rules of procedure established by the party conducting the hearing to assure a prompt and orderly resolution of the issues. The hearing will be held in closed executive session, but the minutes of the meeting (or other written record) shall reflect the results of the hearing. The Affected Parties must be notified of decisions made in consequence of the hearing in the same manner in which notice of the hearing was given.

10.05.4 Appeal. Any decision made pursuant to Section 10.05.3 by a party other than the Board may be appealed to the Board by filing a written notice of appeal with the Board within ten days after the Affected Parties are given notice of the decision. The Board shall then conduct a hearing within a reasonable time after the Board receives the notice of appeal, giving the same notice and observing the same procedures as were required for the initial hearing.

10.05.5 Limited Abatement of Enforcement. Except in the case of an Emergency or other exigent circumstances as determined in the sole opinion of the Board, enforcement proceedings are abated until after expiration of the curative period stated in the notice of violation, or if a hearing is requested or an appeal properly made until ten days after notice of decisions made in consequence of the hearing or appeal is given.

rative period stated in the notice of violation, or if a hearing is requested or an appeal properly made until ten days after notice of decisions made in consequence of the hearing or appeal is given.

10.05.6 Fines. After notice and opportunity to be heard fines may be imposed as specific assessments by the Board or ACC for any violation of this Declaration or other Governing Documents except non-payment of assessments. Except as otherwise provided by applicable Rules and Regulations, the Board or ACC shall fix the amount of a fine for each violation on a case by case basis not to exceed twenty-five dollars ($25.00) per violation per day. Before any fine is imposed the Affected Parties must be given written notice allowing not less than ten days to cure the violation(s); provided, any fine may be imposed at the time of giving notice if written notice has been given to any of the Affected Parties of a similar violation within the preceding twelvemonth period.

SECTION 10.06 Filing of Notice of Non-Compliance. At any time the Board determines there exists any noncompliance with any provisions of this Declaration or other Governing Documents, the Board may at its option direct that a Notice of Noncompliance be filed in the Official Public Records of Real Property of Montgomery County, Texas covering the affected Lot or Lots and the Owner(s) thereof at the sole cost and expense of such Owner(s). All such costs and expenses are due and payable upon demand, e deemed a specific assessment applicable to the affected Lot(s) and are secured by the Association's continuing assessment lien.

Article XI Development Period SECTION 11.01 Application, Notwithstanding any other provisions of this Declaration or

he affected Lot(s) and are secured by the Association's continuing assessment lien.

Article XI Development Period SECTION 11.01 Application, Notwithstanding any other provisions of this Declaration or any other Governing Documents to the contrary, the provisions of this Article XI apply during the Development Period (and thereafter as herein provided).

SECTION 11.02 Appointment of Board and ACC: Authority of Association: Declarant as Member. During the Development Period, Declarant will appoint all members of the Board of DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 70 Directors and ACC and is entitled to remove and replace any of same, and in all other respects to exercise all rights and authority of the Association and ACC as set forth in this Declaration and all other Governing Documents. Any provisions hereof or of the Bylaws or any other Governing Documents regarding qualifications for members of the Board or ACC are hereby specifically declared inapplicable to Developer appointees during the Development Period. Without limitation of the foregoing, Declarant is specifically authorized during the Development Period to exercise all authority of the Board and/or ACC, including without limitation, the authority to contract for, on behalf of or in the name of the Association and to grant variances pursuant to Section 4.02.4.

Declarant is deemed to be a Member of the Association for all purposes during the Development Period whether or not Declarant continues to own any Lot.

SECTION 11.03 Architectural Control: Builder Approval.

11.03.1 ACC Approval Not Required. Declarant and any Builder approved by the Declarant are not required to obtain ACC approval or otherwise comply with any provisions of

ral Control: Builder Approval.

11.03.1 ACC Approval Not Required. Declarant and any Builder approved by the Declarant are not required to obtain ACC approval or otherwise comply with any provisions of Article IV hereof until completion of the initial sale of each Lot, whether or not the initial sale occurs during or after the Development Period.

11.03.2 Declarant's ACC Authority as to Initial Development of Lots.

Notwithstanding any other provisions hereof, DECLARANT HEREBY RESERVES AND RETAINS FULL AND EXCLUSIVE AUTHORITY OF THE ACC AS TO EACH LOT AND THE RIGHT TO ENGAGE IN ANY AND ALL SALES ACTIVITIES REGARDING EACH LOT AS PROVIDED IN SECTION 11.07 UNTIL COMPLETION OF THE INITIAL SALE OF EACH LOT, WHETHER OR NOT COMPLETION OF THE INITIAL SALE OCCURS DURING OR AFTER THE DEVELOPMENT PERIOD. DECLARANT'S AUTHORITY INCLUDES WITHOUT LIMITATION THE RIGHT TO ASSESS AND RECEIVE PAYMENT OF ARCHITECTURAL REVIEW FEES AS AUTHORIZED BY SECTION 4.02.2.

11.03.3 Approval of Builder By Declarant Required. During the Development Period, no Builder is permitted to construct any residence or appurtenant improvements upon a Lot or otherwise conduct any developmental activities within the Subdivision other than those approved in advance by Declarant.

11.03.4 "Completion of the Initial Sale" and "Builder" Defined. As used in this Declaration and as to each Lot (i) "completion of the initial sale" means and occurs upon substantial completion of the construction of a single-family residence and related improvements upon the Lot and the sale of the Lot to a Person other than Declarant or a Builder for use and occupancy of the Lot for a single family residence, and (ii)"Builder" means an Owner other than Declarant who acquires any Lot for purposes of completion of the initial sale of the Lot.

er for use and occupancy of the Lot for a single family residence, and (ii)"Builder" means an Owner other than Declarant who acquires any Lot for purposes of completion of the initial sale of the Lot.

SECTION 11.04 First Meeting of Class A Members; Transfer of Control.

11.04.1 First Meeting of Class A Members. Declarant may call, notice and conduct the first meeting of Class A Members at any time during the Development Period. Declarant must call, notice and conduct the first meeting of Class A Members within a reasonable period of time after the date of termination of the Development Period. Subject to the foregoing, the first meeting will be held on such date and at such place and time as determined by Declarant. The sole purpose of the first meeting is to conduct the election of Directors by Class A Members ("Owner ee DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 71 Directors") unless Declarant designates one or more other purposes in the notice of the meeting.

No business other than as stated in the notice of the meeting may be conducted at the meeting.

Declarant shall appoint a Chairperson and Secretary for the first meeting who need not be officers, directors or Members of the Association. Notwithstanding any other provisions hereof or of any other Governing Documents and regardless of whether or not the Development Period has previously been terminated, at the first meeting the Owner of each Lot, including Declarant. is entitled to cast one vote for each Lot owned. Declarant is additionally entitled to (but is not obligated to) cast its one "at large" vote, but only for the purpose of breaking a tie vote.

11.04.2 Effect of Failure of Class A Members to Elect Board.

larant is additionally entitled to (but is not obligated to) cast its one "at large" vote, but only for the purpose of breaking a tie vote.

11.04.2 Effect of Failure of Class A Members to Elect Board.

(a) Declarant may elect any Owner Directors who are not elected by Class A Members at the first meeting of Class A Members as is needed to fill all directorship positions, either at the first meeting or at any time thereafter unless and until an Alternate First Meeting as hereafter provided is duly called and notice thereof is properly given. Hone or more but less than all Owner Directors are elected as aforesaid, then the Owner Directors who have been elected, through less than a quorum, may elect as many Owner Directors as needed to fill all remaining directorship positions.

(b) That least one Owner Director is not elected at the first meeting of Class A Members by the members or by Declarant, then at any time thereafter Declarant may give written notice to the Owners of all Lots requesting that within sixty days.after the date of the notice (i) the Class A Members call, notice and conduct an "Alternate First Meeting" of Class A Members for and in fact elect thereat at least one Owner Director as hereafter provided, and (ii) provide Declarant with written notice and verification of the election (and all other notices and documents as hereafter required), including the name, mailing address and home and work telephone numbers of all Owner Directors so elected. If one or more but less than all directorship positions are filled at the Alternate First Meeting, then the Owner Directors so elected, through less than a quorum, may elect as many Owner Directors as needed to fill all remaining directorship positions.

ns are filled at the Alternate First Meeting, then the Owner Directors so elected, through less than a quorum, may elect as many Owner Directors as needed to fill all remaining directorship positions.

(c) If Declarant does not call an Alternate First Meeting within ninety days after the first meeting of Class A Members, or if Class A Members fail to elect at least one Owner Director at the Alternate First Meeting called by Declarant, at any time thereafter any three Owners may, as a committee, call, notice and conduct the meeting. Declarant must be given notice as provided by this Article XI of the formation of, and the names, addresses, and home and work telephone numbers of all members of, any committee formed as aforesaid. Only one committee may be created. In the event of conflict, the committee designated in the first written notice received by Declarant will be the sole committee with power to act pursuant to this subsection. Any vacancy for any reason on the committee shall be filled by vote of the remaining member DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 72 or members. All notices and other documents given to Members regarding any meeting called, noticed or conducted by the committee, including the Alternate First Meeting, must also begiven to Declarant at or prior to the time same are given to any Members; and, additionally, Declarant must be given copies of minutes and all other books and records pertaining to the committee and/or any meeting thereof or of Members. The committee calling the meeting shall appoint from its members a Chairperson and Secretary for the Alternate First Meeting.

Voting rights shall be as above stated for the first meeting as called by Declarant.

tee calling the meeting shall appoint from its members a Chairperson and Secretary for the Alternate First Meeting.

Voting rights shall be as above stated for the first meeting as called by Declarant.

(d) IF THE CLASS A MEMBERS FAIL TO ELECT AT LEAST ONE OWNER DIRECTOR NOT LATER THAN ONE YEAR AFTER CONDUCTING OF THE FIRST MEETING OF CLASS A MEMBERS, THEN (i) ALL FUNDS REMAINING IN THE MAINTENANCE FUND, IF ANY, WILL BE DEEMED ABANDONED AND EXCLUSIVE OWNERSHIP THEREOF SHALL BE AUTOMATICALLY TRANSFERRED TO DECLARANT, AND (ii) ANY BOOKS AND RECORDS OF THE ASSOCIATION IN THE POSSESSION OR CONTROL OF DECLARANT OR DECLARANT'S RELATED PARTIES MAY BE DESTROYED.

(e) For the first meeting of Class A Members and any Alternate First Meeting only, the presence, in person or by proxy, and whether or not is good standing, of Class A Members representing not less than onetwentieth of all Lots then contained in the subdivision constitutes a quorum for the purpose of election of Owner Directors. If Owner Directors are not elected to a specific directorship position as described in the Bylaws, then the Owner Directors shall themselves determine their respective Directorship Positions (and corresponding terms of office) prior to the annual meeting next following their election, and the determination shall be reflected in the corporate records.

(f) Notwithstanding any other provisions hereof, any notices permitted or required to be given to Owners or Members under this Section 11.04 may be mailed by regular mail to the street address for each Lot and may be addressed to "Association Member" or similar generic name.

There is no duty by any Person giving any such notice to confirm ownership or any other mailing address.

reet address for each Lot and may be addressed to "Association Member" or similar generic name.

There is no duty by any Person giving any such notice to confirm ownership or any other mailing address.

(g) Until expiration of one year following the date of transfer of Declarant control as hereafter provided, Declarant must be given written notice of the name, mailing address, and home and work telephone number of each Director (including each Owner Director) who is elected by Class A Members within thirty days after any applicable election; and at any time during said two year period, upon written request of Declarant to the Association or any officer or director thereof, Declarant must be DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 73 provided with a complete list of the names, addresses, and home and work telephone numbers of all of the Officers and Directors of the Association as of the dates of the request and the response. The response must be delivered to Declarant within ten days after the date of the request for the list of officers and Directors (or such longer period as may be stated in the request), 11.04.3 Transfer of Declarant Control; Effect.

(a) THE DATE OF TRANSFER OF DECLARANT CONTROL IS THE DATE OF OCCURRENCE OF THE EARLIER OF (1) ELECTION BY CLASS A MEMBERS OR BY DECLARANT OF AT LEAST ONE OWNER DIRECTOR, OR (2) THE DATE OF EXPIRATION OF THE SIXTY-DAY PERIOD FOR MEMBERS TO ELECT AT LEAST ONE OWNER DIRECTOR AS PROVIDED IN SECTION 11.04.2.

(b) ON THE DATE OF TRANSFER OF DECLARANT CONTROL (1) ALL DIRECTORS AND OFFICERS THERETOFORE APPOINTED OR ELECTED BY DECLARANT (OTHER THAN OWNER DIRECTORS) ARE AUTOMATICALLY REMOVED FROM OFFICE AND FULLY RELIEVED THEREAFTER FROM ANY

DECLARANT CONTROL (1) ALL DIRECTORS AND OFFICERS THERETOFORE APPOINTED OR ELECTED BY DECLARANT (OTHER THAN OWNER DIRECTORS) ARE AUTOMATICALLY REMOVED FROM OFFICE AND FULLY RELIEVED THEREAFTER FROM ANY FURTHER RIGHTS, DUTIES, LIABILITIES AND RESPONSIBILITIES REGARDING THE ASSOCIATION OR THE SUBDIVISION, AND (2) THE ASSOCIATION AND ITS MEMBERS BECOME WHOLLY AND SOLELY RESPONSIBLE FOR THE MANAGEMENT, MAINTENANCE AND OPERATION OF THE ASSOCIATION AND OF THE SUBDIVISION, INCLUDING WITHOUT LIMITATION, FULL AND SOLE ASSUMPTION BY THE ASSOCIATION OF ALL MAINTENANCE RESPONSIBILITIES OF THE ASSOCIATION.

11.04.4 Costs of First Meeting; Turnover of Association Funds, Books and Records.

All costs, including attorney's fees, to notice, call and conduct the first meeting of Class A Members, or to maintain any funds, books, records or any other property of the Association pending election of Owner Directors, transfer of Declarant control, or transfer of Association funds, books or records, whether incurred before or after the first meeting of Class A Members or the Alternate First Meeting, are a common expense of the Association which shall be paid from the Maintenance Fund. If and when at least one Owner Director is elected by Class A Members or Declarant as above provided, all funds, and all books and records of the Association (if not previously abandoned or destroyed as provided or permitted by this Section 11.04) must be transferred to the possession or control of any Owner Director, or to the then Managing Agent of the Association, if any, within a reasonable period of time after election of the Owner Director(s) (and receipt by Declarant of notice thereof as applicable). Notwithstanding the foregoing,

Agent of the Association, if any, within a reasonable period of time after election of the Owner Director(s) (and receipt by Declarant of notice thereof as applicable). Notwithstanding the foregoing, Declarant may maintain possession or control of the Maintenance Fund to the extent Declarant determines is necessary for payment of any unpaid expenses of, or as security against other asserted ot outstanding obligations or liabilities of, the Association until such expenses have been paid and/or such obligations and liabilities finally resolved.

DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 74 SECTION 11.05 Community Properties.

11.05.1 Designation or Change as to Community Properties and/or Subdivision Facilities. REGARDLESS OF DESIGNATION BY ANY PLAT OR OTHERWISE, DURING THE DEVELOPMENT PERIOD DECLARANT MAY AT ANY TIME AND FROM TIME TO TIME (i) DESIGNATE, CONSTRUCT, OR EXPAND COMMUNITY PROPERTIES AND/OR SUBDIVISION FACILITIES, AND (ii) MODIFY, DISCONTINUE, REDESIGNATE OR IN ANY OTHER MANNER CHANGE THE COMMUNITY PROPERTIES AND/OR SUBDIVISION FACILITIES. WITHOUT LIMITATION OF THE FOREGOING, DECLARANT SPECIFICALLY RESERVES THE RIGHT AT ANY TIME DURING THE DEVELOPMENT PERIOD TO SELL OR OTHERWISE DISPOSE OF ANY "RESERVES" AND ANY OTHER SIMILAR AREAS, REGARDLESS OF DESIGNATION OF ANY SUCH AREA BY ANY PLAT OR OTHERWISE AS "RESTRICTED", "UNRESTRICTED", OR OTHER DESIGNATION. NEITHER THE FOREGOING NOR ANY OTHER PROVISIONS HEREOF SHALL BE CONSTRUED AS IN ANY MANNER CONSTITUTING ANY REPRESENTATION, WARRANTY OR IMPLICATION WHATSOEVER THAT DECLARANT OR ANY BUILDER WILL UNDERTAKE ANY SUCH DESIGNATION, ° CONSTRUCTION, MAINTENANCE, EXPANSION, IMPROVEMENT OR REPAIR, OR THAT IF AT ANYTIME OR FROM TIME TO TIME UNDERTAKEN, ANY SUCH

SOEVER THAT DECLARANT OR ANY BUILDER WILL UNDERTAKE ANY SUCH DESIGNATION, ° CONSTRUCTION, MAINTENANCE, EXPANSION, IMPROVEMENT OR REPAIR, OR THAT IF AT ANYTIME OR FROM TIME TO TIME UNDERTAKEN, ANY SUCH IMPLICATION IS HEREBY SPECIFICALLY DISCLAIMED.

11.05.2 Construction and Maintenance of Community Properties. During the Development Period Declarant may provide and construct such Community Properties as Declarant may desire at Declarant's sole cost and expense or in conjunction with and as part of the cost of construction of single family residences. ONCE PROVIDED OR CONSTRUCTED, ALL COSTS AND EXPENSES OF THE OPERATION, MANAGEMENT, MAINTENANCE, REPAIR AND REPLACEMENT OF COMMUNITY PROPERTIES, INCLUDING ALL COSTS AND EXPENSES OF INSURANCE THEREON, WILL BE PAID BY THE ASSOCIATION FROM THE MAINTENANCE FUND (EITHER DIRECTLY OR BY REIMBURSEMENT TO DECLARANT) REGARDLESS OF WHETHER OR NOT TITLE HAS BEEN TRANSFERRED OR CONVEYED TO THE ASSOCIATION AND REGARDLESS OF WHETHER OR NOT ANY APPLICABLE CONTRACT, AGREEMENT OR OTHER ARRANGEMENT FOR OPERATION, MANAGEMENT, MAINTENANCE, REPAIR OR REPLACEMENT IS IN THE NAME OF, IS PROCURED THROUGH OR HAS BEEN TRANSFERRED OR ASSIGNED TO THE ASSOCIATION. The Association will also pay as aforesaid all costs and expenses, regardless of type and including procurement, as to service type Subdivision Facilities such as any patrol, or any garbage or recycling services.

11.05.3 Conveyance of Community Properties.

(a) Declarant may convey, transfer or assign any or all Community Properties to the Association during the Development Period, and must do so within a reasonable time after termination of the Development Period. THE ASSOCIATION IS OBLIGATED TO .

ACCEPT ANY CONVEYANCE AND ANY OTHER TRANSFER OF OWNERSHIP OF ANY COMMUNITY PROPERTIES (AS SO

so within a reasonable time after termination of the Development Period. THE ASSOCIATION IS OBLIGATED TO .

ACCEPT ANY CONVEYANCE AND ANY OTHER TRANSFER OF OWNERSHIP OF ANY COMMUNITY PROPERTIES (AS SO DESIGNATED BY DECLARANT DURING THE DEVELOPMENT PERIOD), REGARDLESS OF WHETHER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 75 (b) THE CONVEYANCE OR OTHER TRANSFER OCCURS DURING OR AFTER THE DEVELOPMENT PERIOD. THE ASSOCIATION'S ACCEPTANCE AS AFORESAID IS CONCLUSIVELY ESTABLISHED UPON FILING OF THE APPLICABLE INSTRUMENT OF CONVEYANCE OR OTHER TRANSFER IN THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF MONTGOMERY COUNTY, TEXAS, OR AS OF THE DATE OF DELIVERY OF SAID INSTRUMENT TO THE ASSOCIATION.

ANY RIGHT, TITLE OR INTEREST TO ALL COMMUNITY PROPERTIES WILL BE TRANSFERRED, CONVEYED OR ASSIGNED TO THE ASSOCIATION ON AN "AS JIS", "WHERE IS" AND "WITH ALL FAULTS" BASIS, AND, EXCEPT FOR SPECIAL WARRANTY OF TITLE BY, THROUGH OR UNDER DECLARANT, WITHOUT ANY COVENANT, WARRANTY, GUARANTY OR REPRESENTATION WHATSOEVER, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING BUT NOT LIMITED TO: (1) ANY IMPLIED COVENANTS UNDER SECTION 5.023 OF THE TEXAS PROPERTY CODE AND ANY WARRANTY OF CONDITION, HABITABILITY, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR OR INTENDED PURPOSE; (Il) THE NATURE AND CONDITION OF THE PROPERTY OR OTHER ITEMS TRANSFERRED, ASSIGNED OR CONVEYED, INCLUDING, WITHOUT LIMITATION, PHYSICAL OR ECONOMIC CHARACTERISTICS OF THE PROPERTY, THE WATER, SOIL AND GEOLOGY, THE SUITABILITY THEREOF AND OF THE PROPERTY OR OTHER ITEMS FOR ANY AND ALL ACTIVITIES AND USES, THE EXISTENCE OF ANY ENVIRONMENTAL HAZARDS OR CONDITIONS THEREON (INCLUDING BUT NOT LIMITED TO THE PRESENCE OF ANY HAZARDOUS. MATERIALS,

HE PROPERTY OR OTHER ITEMS FOR ANY AND ALL ACTIVITIES AND USES, THE EXISTENCE OF ANY ENVIRONMENTAL HAZARDS OR CONDITIONS THEREON (INCLUDING BUT NOT LIMITED TO THE PRESENCE OF ANY HAZARDOUS. MATERIALS, SUBSTANCES OR CONTAMINANTS OF ANY KIND) OR COMPLIANCE WITH APPLICABLE ENVIRONMENTAL LAWS, RULES OR REGULATIONS; (II) THE NATURE AND EXTENT OF ANY RIGHT-OF-WAY, LEASE, POSSESSION, LIEN, ENCUMBRANCE, LICENSE, RESERVATION, CONDITION. OR OTHERWISE; (IV) THE COMPLIANCE OF THE PROPERTY OR OTHER ITEMS TRANSFERRED, ASSIGNED OR CONVEYED, INCLUDING AS TO ITS OPERATION OR USE, WITH ANY LAWS, ORDINANCES OR REGULATIONS OF ANY GOVERNMENTAL ENTITY OR BODY AND (V) THE NATURE, TYPE OR VIABILITY OF ANY LANDSCAPING, OR THAT ANY TYPE, QUANTITY OR LOCATION OF LANDSCAPING WILL BE MAINTAINED OR CONTINUED AT ANY TIME. ALL SUCH COVENANTS, GUARANTIES, REPRESENTATIONS AND WARRANTIES DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 76 EXPRESS OR IMPLIED, OR BY OPERATION OF LAW, ARE HEREBY EXPRESSLY DISCLAIMED, THE PROVISIONS OF SECTIONS 3.06 AND 11.11.3 FULLY APPLY AS TO SAME, AND THE PROVISIONS HEREOF SHALL APPLY WHETHER OR NOT STATED IN ANY DEED. CONVEYANCE OR OTHER: TRANSFER AS TO THE AFFECTED COMMUNITY PROPERTIES. IN ADDITION, NO TITLE INSURANCE OF ANY TYPE WILL BE PROVIDED REGARDING THE TRANSFER OR CONVEYANCE OF ANY COMMUNITY PROPERTIES.

11.05.4 Declarant's Use of Community Properties. So long as Declarant owns any Lot within the Subdivision, Declarant and any Builder as so designated by Declarant (i) have a non-exclusive easement upon, over, under and across any and all Community Properties, and a non-exclusive right to use in any manner any part or all of the Community Properties as is

larant (i) have a non-exclusive easement upon, over, under and across any and all Community Properties, and a non-exclusive right to use in any manner any part or all of the Community Properties as is reasonably necessary in Declarant's sole opinion for the development of the Subdivision and the development and sale of Lots therein, SECTION 11.06 Easements, Declarant and any Builder as so designated by Declarant, and their agents or employees (including any contractor or subcontractor) are entitled during the Development Period to use and exercise all easements set forth in this Declaration for, and Declarant may grant or exercise such additional easements for ingress, egress and usage as is reasonably necessary for, construction of single family residences, providing and development of utilities, Community Properties and/or Subdivision Facilities and any and all other "Developmental Activities" as defined in Section 11.11. Any part of a single-family residence as originally constructed may be located or encroach upon any easement established by this Declaration so long as any such location or encroachment does not interfere with any actual usage as permitted by any applicable easement actually existing at the time of establishment of such location or encroachment.

SECTION 11.07 SALES ACTIVITIES. DECLARANT, AND ANY BUILDER SO AUTHORIZED BY DECLARANT, HAVE THE RIGHT TO TRANSACT ANY BUSINESS AND CONDUCT ANY ACTIVITIES REASONABLY NECESSARY FOR THE DEVELOPMENT OF THE SUBDIVISION (INCLUDING ALL "DEVELOPMENTAL ACTIVITIES" AS DEFINED IN SECTION 11.11), AND FOR THE SALE OR RENTAL OF LOTS AND SINGLE FAMILY RESIDENCES TO BE CONSTRUCTED WITHIN THE SUBDIVISION. UNTIL COMPLETION OF THE INITIAL SALE (AS PROVIDED IN SECTION 11.03) OF ALL LOTS OWNED BY DECLARANT OR A BUILDER, WHETHER

OF LOTS AND SINGLE FAMILY RESIDENCES TO BE CONSTRUCTED WITHIN THE SUBDIVISION. UNTIL COMPLETION OF THE INITIAL SALE (AS PROVIDED IN SECTION 11.03) OF ALL LOTS OWNED BY DECLARANT OR A BUILDER, WHETHER OR NOT THE INITIAL SALE OF ALL LOTS OCCURS DURING OR AFTER THE DEVELOPMENT PERIOD, THE RIGHTS OF DECLARANT (AND ANY AUTHORIZED BUILDER) AS AFORESAID SHALL INCLUDE, WITHOUT LIMITATION OF THE FOREGOING, THE RIGHT TO MAINTAIN MODELS, TO HAVE, PLACE AND MAINTAIN SALES AND PROMOTIONAL SIGNS, FLAGS, BANNERS AND SIMILAR PROMOTIONAL DEVICES WITHIN THE SUBDIVISION, TO CONDUCT FROM TIME TO TIME AN "OPEN HOUSE" AND SIMILAR EVENT'S FOR REALTORS AND OTHER PERSONS WHICH MAY INCLUDE WITHOUT LIMITATION LEAVING LIMITED ACCESS GATES (IF ANY) OPEN FOR PERIODS OF TIME OR OTHERWISE PROVIDING FOR OR PERMITTING ACCESS TO THE SUBDIVISION BY PROSPECTIVE PURCHASERS, REALTORS AND OTHER DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 77 PERSONS AS DETERMINED BY DECLARANT, AND TO USE FOR DEVELOPMENT, SALES AND/OR PROMOTIONAL PURPOSES ALL OR ANY PART OF ANY LOT, OR RESIDENCE OR OTHER IMPROVEMENTS LOCATED THEREON, WHICH IS OWNED BY DECLARANT OR A BUILDER. DURING THE DEVELOPMENT PERIOD, ONLY, DECLARANT MAY ALSO USE FOR DEVELOPMENT, SALES AND/OR PROMOTIONAL PURPOSES, AND WITHOUT CHARGE, ANY COMMUNITY PROPERTIES (INCLUDING SUBDIVISION FACILITIES).

SECTION 11.08 Assessments.

11.08.1 Right of Declarant to Set Rates and Impose Special Assessments. During the Development Period Declarant is entitled to change the annual rate of regular assessment as set forth in Section 5.03.1 and/or to impose special assessments as set forth in Section 5.05 without the joinder, vote or consent of any Owner and without further formality than giving of notice

t as set forth in Section 5.03.1 and/or to impose special assessments as set forth in Section 5.05 without the joinder, vote or consent of any Owner and without further formality than giving of notice thereof as provided in Section 5.03.2 or Section 5.05, as applicable. Without limitation of the foregoing, the provisions of Section 5.03.2 regarding disapproval of an annual rate of regular .

assessments or special assessment is specifically declared inapplicable when the rate is set by, or the special assessment imposed by, Declarant under this Section.

11.08.2 _ Payment of Assessment by Declarant During Development Period.

(a) Notwithstanding anything to the contrary contained herein or in any _ other Governing Documents, Declarant and TWDC is exempt from payment of all assessments (regular, special or specific) until the first day of January following the year in which the Development Period is terminated. From and after the first day of January following termination of the Development Period, Declarant shall pay regular assessments equal to one-half the rate that would otherwise be applicable until, as to each Lot owned by Declarant, the first day of the month following completion of the initial sale of the Lot (u defined in Section 11.03). In the event of re-acquisition of ownership of any Lot by Declarant, the rate of assessment then applicable to Declarant shall again apply in accordance with this Section.

(b) In lieu of payment of assessments as aforesaid, Declarant will contribute to the Maintenance Fund during the Development Period an amount, if any, equal to the Actual Operating Expenses of the Association less all funds available to the Association regardless of source and regardless of any principles of accrual or other

eriod an amount, if any, equal to the Actual Operating Expenses of the Association less all funds available to the Association regardless of source and regardless of any principles of accrual or other accounting which might otherwise be applicable; provided, DECLARANT SHALL NEVER BE REQUIRED TO CONTRIBUTE MORE THAN AN AMOUNT EQUAL TO THE FULL ANNUALIZED RATE OF REGULAR ANNUAL ASSESSMENTS WHICH WOULD OTHERWISE BE PAYABLE BY DECLARANT AS A CLASS A OWNER OF ONE OR MORE LOTS. "Funds available to the Association" shall include, without limitation, all assessments (regular, utility, special and specific) “ SS DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 78 received from all other Owners subject to payment of assessments plus all other income received by the Association from any source (such as, for example, interest income), "Actual Operating Expenses" means those expenses reasonably necessary during the Development Period for the discharge of the Association's functions and duties under this Declaration, but does not include capital expenditures (determined in accordance with generally accepted accounting principles), or any amounts paid or to be paid to capital, contingency or other reserves, or any prepaid items, inventory or similar expenses attributable to periods after expiration or termination of the Development Period. The determination of Actual Operating Expenses by Declarant is final and conclusive.

Declarant will contribute to the Maintenance Fund as aforesaid from time to time as Declarant may determine. FROM TIME TO TIME UP TO THE DATE OF EXPIRATION OR TERMINATION OF THE DEVELOPMENT PERIOD, DECLARANT MAY OFFSET ANY SURPLUS FUNDS OF THE ASSOCIATION (BEING ALL FUNDS REMAINING AFTER PAYMENT OF "ACTUAL

. FROM TIME TO TIME UP TO THE DATE OF EXPIRATION OR TERMINATION OF THE DEVELOPMENT PERIOD, DECLARANT MAY OFFSET ANY SURPLUS FUNDS OF THE ASSOCIATION (BEING ALL FUNDS REMAINING AFTER PAYMENT OF "ACTUAL OPERATING EXPENSES" AS HEREIN DEFINED) AGAINST ALL CONTRIBUTIONS MADE BY DECLARANT DURING THE DEVELOPMENT PERIOD. DECLARANT MAY DEMAND AND RECEIVE REPAYMENT FROM SUCH SURPLUS FUNDS UP TO THE FULL AMOUNT OF DECLARANT.

CONTRIBUTIONS, WITHOUT INTEREST, AT ANY TIME EITHER DURING OR AFTER THE DEVELOPMENT PERIOD.

DECLARANT'S GOOD FAITH DETERMINATION OF ACTUAL OPERATING EXPENSES, SURPLUS FUNDS AND ANY OTHER MATTERS PERTAINING TO THE FOREGOING IS FINAL.

SECTION 11.09 Notices to Declarant. All notices or other communications to Declarant, as required or permitted by this Declaration, any other Governing Documents or otherwise, must be given to Declarant's registered agent at its registered office, by personal delivery acknowledged in writing or by certified or registered mail, return receipt requested, or as otherwise directed by written notice of Declarant filed in the Official Public Records of Real Property of Montgomery County, Texas. Notices or other communications to Declarant are deemed given only upon actual receipt. The foregoing applies both during and after the Development Period.

SECTION 11.10 Amendment of Governmental Documents or Plat; Annexation.

. 11.10.1 Declarant's Reserved Rights. During the Development Period Declarant reserves the sole and exclusive right, without joinder or consent of; and without notice of any kind to, any Owner or other Person, to (i) amend, modify, revise or repeal, from time to time and at any time, this Declaration and any other Governing Documents, (ii) prepare, amend, modify, revise

y kind to, any Owner or other Person, to (i) amend, modify, revise or repeal, from time to time and at any time, this Declaration and any other Governing Documents, (ii) prepare, amend, modify, revise ot repeal any Plat covering or to cover the Subdivision and (iii) annex and subject any other property to the scheme of this Declaration provided any such annexation is not inconsistent with the scheme of development contemplated hereby. During the Development Period, no other properties may be annexed or subjected to the scheme of this Declaration without the written DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 79 consent of Declarant. Any such amendment, modification, revision, repeal or annexation shall be effective from and after filing of notice thereof in the Official Public Records of Real Property of Montgomery County, Texas except to the extent expressly otherwise provided in the notice.

11.10.2 NO IMPAIRMENT OF DECLARANT'S RIGHTS, NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS DECLARATION TO THE CONTRARY, NO PROVISIONS OF THIS ARTICLE XI MAY BE AMENDED, MODIFIED, CHANGED OR TERMINATED EITHER DURING OR AFTER TERMINATION OF THE DEVELOPMENT PERIOD WITHOUT THE PRIOR WRITTEN CONSENT OF DECLARANT, SECTION 11.11 Limitation of Liability.

11.11.1 General. Without limitation of Section 3.06 hereof, the decisions of Declarant regarding all developmental activities, management and operation of the Association and all other activities undertaken by Declarant pursuant hereto are final and conclusive; provided, Declarant will conduct all such activities in a manner consistent with the general scheme of development hereby established.

11.11.2 Developmental Activities. Declarant may or will be required during the

larant will conduct all such activities in a manner consistent with the general scheme of development hereby established.

11.11.2 Developmental Activities. Declarant may or will be required during the Development Period to engage in construction activities upon multiple Lots or Community Properties, to store equipment or materials on multiple Lots or Community Properties, to create accumulations of trash and debris, to leave limited access gates (if any) open from time to time and at any time as Declarant determines is reasonable necessary to accommodate construction and any other developmental activities, and to otherwise engage in activities and create conditions related to its development of the Subdivision, including the construction and sale of residences and any other improvements in the subdivision (the "Developmental Activities"). Declarant will use reasonable efforts to minimize the adverse effects of its Developmental Activities. However, ABSENT INTENTIONAL AND WILLFUL MISCONDUCT, DECLARANT IS NOT LIABLE TO ANY OWNER OR TENANT, OR TO THE ASSOCIATION OR ACC, OR TO ANY RELATED PARTIES OF ANY OF THE FOREGOING, FOR ANY CONSEQUENCES OF THE REASONABLE CONDUCTING OF ITS DEVELOPMENTAL ACTIVITIES. — Further, Declarant may establish any reasonable regulations as to Owners and tenants, as to the Association and ACC, and as to any Related Parties of any of the foregoing, which Declarant deems appropriate to avoid hindrance or interference with its Developmental Activities, including limiting or denying access to areas of the Subdivision, designating temporary dumping sites, maintenance of metal buildings or structures and use of Community Properties and/or Subdivision Facilities in connection with its Developmental Activities.

vision, designating temporary dumping sites, maintenance of metal buildings or structures and use of Community Properties and/or Subdivision Facilities in connection with its Developmental Activities.

11.11.3 NO REPRESENTATIONS OR WARRANTIES: INDEMNIFICATION.

(a) NO COVENANTS, REPRESENTATIONS, GUARANTIES OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, OR BY OPERATION OF LAW, AND INCLUDING EXCLUSION OF ALL WARRANTIES OF HABITABILITY, MERCHANTABILITY AND FITNESS FOR ANY INTENDED OR PARTICULAR PURPOSE, SHALL BE DEEMED TO BE GIVEN OR MADE BY DECLARANT, OR DECLARANT'S OFFICERS, DIRECTORS, AGENTS OR EMPLOYEES, BY ANY DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR WATERWAY LANDING AT EAST SHORE Page 80