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Page 1 of 42 D216179668 8/8/2016 1:56PM PGS 42 Fee: $180.00 Submitter: CSC ERECORDING SOLUTIONS Electronically Recorded by Tarrant County Clerk in Official Public Records 41 b ff ducer ban cca, Mary Louise Garcia DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR PEMBERLEY ESTATES This Declaration of Covenants, Conditions and Restrictions for Pemberley Estates is made on the date hereinafter set forth by the Declarant (hereinafter defined).

Declarant is the owner of the Property (as herein defined). Declarant desires t& itypose upon the Property mutually beneficial restrictions under a general plan of improverfrent\foxr the benefit of the owners of each portion of the Property. This Declaration (as defn administration, maintenance and preservation of the Property. In furthefance sich ‘pian, Declarant has caused or intends to cause Pemberley Estates Homeowneys“ASsqodiatiem Inc. to be formed as a Texas nonprofit corporation to own, operate, and mainta aor Areas (as P yeclaratio aration ’shatbe binding upon all parties having any right, title or interest in any portion ‘ef “he Property, their heirs, successors, successors-in-title and assigns, and shall inure fit of Declarant, the Association (hereinafter defined), the ACA (hereina ach owner of any portion of the Property.

I EFIJNITIONS 1.1 “Annexable and subjected to this Decla eans real property that may be added to the Property rant.

12 ectural Control Authority” shall have the meaning provided ards” means standards adopted by the ACA regarding architectural including, without limitation, architectural design, placement of 1.5 “Association Fencing” means that certain fencing installed by Declarant, if Declarant so elects, including, without limitation, the screening wall and/or fence around the

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ural design, placement of 1.5 “Association Fencing” means that certain fencing installed by Declarant, if Declarant so elects, including, without limitation, the screening wall and/or fence around the perimeter of the Property, which shall be part of the Common Area which the Association, and not the City shall have the obligation to maintain, repair and replace.

012527.000000\4825-7787-3706.vI Page 2 of 42 1.6 “Board of Directors” means the board of directors of the Association.

1.7. “Builder” means any person or entity who purchases one or more Lots for the purpose of constructing improvements for later sale to consumers in the ordinary course of such person’s or entity’s business.

1.8 “City” means the City of Midlothian, Texas.

1.9 “Common Area” and “Common Areas” means all areas (including the improvements thereon) within the Property owned or to be owned by the Associatio common use and enjoyment of the Members, including, without limitation, th Fencing.

1.10 “Common Expenses” means the actual and estimated ex anticipated to be incurred by the Association for the benefit of the-Membe Common Maintenance Areas, but excluding any expenses incurred seein Period for the initial or original construction of improvements das, if any, and any areas within public rights-of-way, easements (public and _private of a Lot, public parks, private streets, landscaping, entry feature, fence Nnilar areas—tHat the Board of Directors deems necessary or appropriate to maintain for the co benefit of the Members.

1.11. “Common Maintenance Areas” means the ¢ in writing to assume the duties aft Q by such successor or assign/p a¢dechme Declarant if Declarant makes'g partial agi 1.14 “Declarati¢y for Pemberley Estates terms.

edInterest Rate” means the interest rate designated by the Board of

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t Q by such successor or assign/p a¢dechme Declarant if Declarant makes'g partial agi 1.14 “Declarati¢y for Pemberley Estates terms.

edInterest Rate” means the interest rate designated by the Board of ime, subject to any interest limitations under Texas law. If the Board of ighest rate permitted by Texas law. The Designated Interest Rate is also subject s in Section 11.6 herein.

“Development” means the Property and the Annexable Property.

1.17 “Development Period" means the period commencing upon the date of this Declaration and expiring upon the earlier of (i) when Declarant does not own any real property within the Property, or (ii) when Declarant executes a document stating the Development Period has terminated, which termination document may be executed during the period when Declarant still owns real property within the Property.

012527.000000\4825-7787-3706.v1 Page 3 of 42 1.18 “Dwelling” means any residential dwelling situated upon any Lot.

1.19 “Lot” or “Lots” means any separate residential building parcel(s) shown on a recorded subdivision plat of the Property or any part thereof, but only if such parcel{s) has in place the infrastructure (including utilities and streets) necessary to allow construction of a single-family home thereon. Common Areas and areas deeded to a governmental authority or utility, together with all improvements thereon, shall not be included as part of a Lot. Lot 1X in Block 2 of the plat of the Property (the “Pipeline Lot”) shall not be considered a “Lot” as defined herein.

1.20 ‘Member” means any person, corporation, partnership, joint ven: legal entity that is a member of the Association pursuant to the terms in Article 1.22 “Property” means the real property describe 1.23 “Record,” “Recording” or “Recoy

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oration, partnership, joint ven: legal entity that is a member of the Association pursuant to the terms in Article 1.22 “Property” means the real property describe 1.23 “Record,” “Recording” or “Recoy the Public Records of Ellis County, State the official location for filing deeds, plats, s a Recorded instrument, which subjects poses restrictions and obligations on the land 1.24 “Supplemental Declar, additional property to this DegPatio described in the instrument.

1.25 “Vacant occupied at any time (paso that does not have thereon a Dwelling that has been ‘or residential purposes.

ARTICLE II PROPERTY RIGHTS Ww Easements of Use and Enjoyment. Every Owner shall have a right and no S asément of use, access and enjoyment in and to the Common Areas, and such appurtenant to and shall pass with the title to every Lot, subject to any orth herein, including, without limitation, the following: a. Rules. The right of the Association to establish and publish rules and regulations governing the use of the Common Areas and/or the Lots.

b. Suspension of Voting Rights. The right of the Association to suspend the right of use of the Common Areas and the voting rights of an Owner, subject to Section X below, for any period during which any assessment against such Owner’s Lot remains unpaid.

012527.000000\4825-7787-3706.v1 Page 4 of 42 c. Conveyance of Common Area. The right of the Association, subject to the provisions hereof, to dedicate, sell or transfer all or any part of the Common Areas, However, no such dedication, sale or transfer will be effective unless there is an affirmative vote of 67% or more of the outstanding votes entitled to be cast approving such action.

d. Mortgage Common Area. The right of the Association, subject to the

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e effective unless there is an affirmative vote of 67% or more of the outstanding votes entitled to be cast approving such action.

d. Mortgage Common Area. The right of the Association, subject to the provisions hereof, to mortgage or lien all or any part of the Common Areas. However, the Common Areas cannot be mortgaged or liened unless there is an affirmativeyote of 67% or more of the outstanding votes entitled to be cast approving such action, 2.2 Prohibitions on Easement of Use and Enjoyment. Each Own easement of use and enjoyment in and to the Common Areas is further limiteds ed\abienated or encumbered separate and apart from an Owner’s Lot g ight-ehd easement of use alienated or encumbered upon the sale of any O } notwithstanding that the description in the instrument of conveyance, tra leiati refer to the Common Areas.

b. No Partition. Except as pf e ection 2.1.¢ herein, the Common Areas shall remain undivided andgty actidn/ astition or division of any part thereof shall be permitted.

2.3 Right to Delegate Use ays of Common Areas. Any Owner may Cc D extend his or her right of use g Anjo he Common Areas to the members of his or her family, lessees and guests as éct to the terms in this Declaration, the Bylaws of the Association (the “Bylaws who leases his or her Dwellix Dwelling.

> ARTICLE II MEMBERSHIP AND VOTING Voting Rights. The Association shall have the following two classes of voting membership: Voting Rights. The voting rights in the Association shall be as follows: a. Members other than Declarant. Except as provided in Section 3.2(b) below, Members shall be entitled to one vote for each Lot owned. However, when more 012527.000000\4825-7787-3706.v1 Page 5 of 42 than one person or Member holds an interest in any Lot, only one vote in total may be

shall be entitled to one vote for each Lot owned. However, when more 012527.000000\4825-7787-3706.v1 Page 5 of 42 than one person or Member holds an interest in any Lot, only one vote in total may be cast per Lot as the Owners of such Lot determine among themselves and advise the Secretary of the Association in writing prior to the vote being taken. The Association shall have no affirmative obligation to take any action to determine which Member is the person designated to cast the Lot's vote. If the Members fail to advise the Association of the person designated to cast the Lot's vote, then the Lot's vote shall be suspended if more than one person or entity seeks to exercise it.

b. Declarant. Declarant shall be entitled to ten (10) votes for each Lot*Qgwned by Declarant, regardless if the period is within or after the Development Period.

ARTICLE IV ASSESSMENTS covenant and agree to pay to the Association: (i) annual assessments as provided in Section 4.5 herein, and (iti) Section 4.9 herein.

ach such assessment, together with d reasonable attorneys’ fees, shall er of such Lot at the time when the grantee shall be jointly and severally the time of conveyance. However, no ary of a Recorded deed of trust shall be liable to such acquisition of title. In addition, no 4.2. Personal Obligation to Pay Assess interest at the Designated Interest Rate, late cha be the personal obligation of the person assessment arose. Upon a transfer of title4 liable for any assessments and other [ mortgagee under a Recorded moxtgagg¢ for unpaid assessments, whieh 4.3 on shall be used for Common Expenses. The Association e fund for the periodic maintenance, repair and replacement m and Actual Annual Assessment. Until January Ist of the year

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d assessments, whieh 4.3 on shall be used for Common Expenses. The Association e fund for the periodic maintenance, repair and replacement m and Actual Annual Assessment. Until January Ist of the year a. Maximum Increase Without Vote. Without a vote of the Members in accordance with Subsection b below, the Board of Directors may increase the maximum annual assessment each year by up to 20% above the maximum annual assessment for the previous year. The Board of Directors may increase the maximum annual assessment with or without increasing the actual annual assessment.

012527.000000\4825-7787-3706.v 1 Page 6 of 42 b. Maximum Increase With Vote. The maximum annual assessment may not be increased more than 20% above the prior year’s maximum annual assessment amount unless there is an affirmative vote of 67% or more of the outstanding votes entitled to be cast approving such action.

c. Lots Owned by Declarant — Exempt. Notwithstanding any provision herein, during the Development Period all Lots owned by Declarant shall be exempt from all assessments (annual assessments, special assessments and/or specific assessments) and Declarant shall not be obligated to pay any assessments for the Lots.

4.5 Special Assessments. In addition to the annual assessments auth the Association may levy, in any assessment year, a special assessment to coye approved by an affirmative vote of 67% or more of the outstanding 7 approving such action.

4.6 Uniform Rate of Assessment — Reduced assessments and special assessments shall be fixed at a wu Vacant Lots shall be assessed at 25% of the regular are insufficient to pay the expenses of the the Association the lesser of: (i) the differe difference between the total amount of asse at the reduced assessment rate) g aM

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sessed at 25% of the regular are insufficient to pay the expenses of the the Association the lesser of: (i) the differe difference between the total amount of asse at the reduced assessment rate) g aM Vacant Lots if such Vacant Lof We essed as Lots at the full (100%) rate. Declarant shall gsult of the failure or refusal of an Owner or Owners to Declarant’s election to pay more than the shall not obligate Declarant to pay any such sums in the future.

Commencement of Annual Assessments; Due Dates. The annual d for herein shall commence as to all Lots on the date of conveyance of the assessment against each Lot at least 30 days in advance of each assessment period.

Written notice of the annual assessment shall be sent to an Owner of every Lot subject thereto.

The due dates shall be established by the Board of Directors. The Board of Directors shall also establish whether the annual assessment shall be paid annually, quarterly or monthly.

4.9 Specific Assessments. The Association shall have the power to levy specific assessments against a particular Lot to (i) cover costs incurred in bringing a Lot into compliance 012527.000000\4825-7787-3706.v1 Page 7 of 42 with this Declaration, (11) cover costs incurred as a consequence of the conduct (or the failure to act) of the Owner or occupant of a Lot, their agents, contractors, employees, licensees, invitees, or guests, and/or (iti) collect any sums due by the Owner to the Association (other than annual assessments or special assessments or interest or late charges related thereto), including, without limitation, fines and transfer fees.

4.10 Personal Obligation to Pay Assessments. Each assessment provided herein,

special assessments or interest or late charges related thereto), including, without limitation, fines and transfer fees.

4.10 Personal Obligation to Pay Assessments. Each assessment provided herein, together with interest at the Designated Interest Rate, late charges, collection costs and reasonable attorneys’ fees, shall be the personal obligation of the person who was the Qwner of such Lot at the time when the assessment arose. Upon a transfer of title to a Lot, shall be jointly and severally liable for any assessments and other charges due a conveyance. However, no mortgagee under a Recorded first purchase mope beneficiary of a Recorded first deed of trust (meaning any Recorded mortgage with first priority over other mortgages or deeds of trust), shall be liable for which accrued prior to mortgagee's acquisition of title. In additio required to collect assessments.

4.11 Capitalization of Association. Upon acquis{tién of reéord Title to a Lot by every glection of the Board of the Association in an amount equal to six (6) mon the fal annual assessment per Lot for that year. This amount shall be in addition to, not ir the annual assessment and shall not be considered an advance payment of such asses$p amount shall be disbursed to the Association for use in covering oper and other expenses incurred by the Association pursuant to this Declaration and §. In the event annual assessments have been assessed for less than a full year, i e foregoing ceiling amount, the Board of 2 aftial year to determine an annual assessment amount for the entire year for puy ig calculation.

Status. The Association will, promptly after written rhish a certificate signed by an officer of the Association ent has been paid for the assessment period.

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or the entire year for puy ig calculation.

Status. The Association will, promptly after written rhish a certificate signed by an officer of the Association ent has been paid for the assessment period.

413 Failu Assessments; Remedies of the Association. With respect to any arr UW C 4 assessment or £ : J Association s byrne € right to: (i) charge a late fee, in an amount determined by the Board of ii chargeNsiterest on the amount due at the Designated Interest Rate from the due date fhe sum is paid; and/or (iii) charge costs and fees related to the collection of assessmnente’provided for herein by non-use of the Common Maintenance Area or abandonment of his or her Lot. The failure to pay assessments shall not by the terms of this Declaration constitute a default under an insured mortgage, unless otherwise provided by the terms of such mortgage.

4.14 Payment Plans. If an Owner is unable to pay any assessment or other sum due herein, then upon written notice to the Association delivered no later than two (2) business days 012527.000000\4825-7787-3706.v1 Page 8 of 42 following the due date of such payment, the Association shall extend to such Owner a payment plan on the following terms (a “Payment Plan”): a. The amount due herein may be paid in three equal partial payments, due one (1) month, two (2) months and three (3) months following the original due date of such payment.

b. Such amounts shall be subject to (1) interest at the Designated Interest Rate from the due date until the date the sum is paid; and/or (ii) reasonable costs related, to the collection of the sum due.

The Association is not obligated to extend a Payment Plan to an Owng honor the terms of a previous Payment Plan during the two (2) yea Owner’s default under the previous Payment Plan.

4.15 Lien.

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due.

The Association is not obligated to extend a Payment Plan to an Owng honor the terms of a previous Payment Plan during the two (2) yea Owner’s default under the previous Payment Plan.

4.15 Lien.

a. Creation of Lien.

(i) The Association shall hereb € is hereby granted a continuing lien against each Lot togsequre pa f delinquent assessments (annual assessments, special assesSmen capitalization contributions, as well fees, and costs of collectien, ¥ attorneys’ fees. Although lien, the Association may, a evidence and notice of the lien, execute and any Lot, the amount of delinquent sums due at Qwned by such Owner, subject to all easements and other encumbrances 3 fiecting such Lot; provided, that each such grant shall be subordinate to the lien wy mortgage or deed of trust only to the extent provided in this Section 4.13; nd for these purposes the provisions of this Section 4.13(a)(ii) shall be deemed to have created a deed of trust (the “Deed of Trust”) covering all of the Lots with a power of sale granted to the Trustee in accordance with the provisions of Chapter 51 of the Texas Property Code (the “Code”) as it may be amended from time to time. The Deed of Trust created hereby shall be upon the same terms and conditions, and shall provide to the Association all of the rights, benefits and privileges, as the Deed of Trust promulgated by the State Bar of Texas for use by lawyers (appropriately conformed to comply with the terms of this Declaration), 0:12527.000000\4825-7787-3706.v1 Page 9 of 42 and all amendments, modifications and substitutions thereof, which form is hereby incorporated by reference for all purposes hereof. The Association, acting through its president, shall have the right in its sole discretion at any time, and

bstitutions thereof, which form is hereby incorporated by reference for all purposes hereof. The Association, acting through its president, shall have the right in its sole discretion at any time, and from time to time, to appoint in writing a substitute or successor trustee who shall succeed to all rights and responsibilities of the then acting Trustee.

(iii) | Without limitation of the remedies available to the Association and to the other Owners upon the occurrence of a default by any Owner in the payment or performance of the obligations set forth in Section dj, the public auction in accordance with the provisions of the Code.

may, at its option, accomplish such foreclosure sale in such me claims thereto, and the proceeds of any such satc.s order of priority: (i) to the payment of the cog of the Lot, ({i1) to the payment of reasonable costs of advertisement and sale, (iv) ta other amounts payable by such Ownei defaulting Owner or to any other pax ses of taking possession ef, (iii) to the payment of unpaid assessments and of the assessments due and ¢ defaulting Owner to the Association as of the date of such sale.

(iv) Lot of the of such L ay at any time notify the first mortgagee of any ssments and other amounts payable by the Owner hon hereunder.

b. of Lien. The lien of the assessments provided for herein f any Recorded first mortgage or first deed of trust against a Lot.

nforcement of Lien.

(i) The lien may be enforced by judicial or, if an owner agrees in riting at the time the foreclosure is sought to waive judicial foreclosure pursuant o Section 209.0092 of the Texas Property Code, by nonjudicial foreclosure. The Board may appoint, from time to time, any person including an officer, agent,

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ught to waive judicial foreclosure pursuant o Section 209.0092 of the Texas Property Code, by nonjudicial foreclosure. The Board may appoint, from time to time, any person including an officer, agent, trustee, substitute trustee, or attorney, to exercise the Association's lien rights on behalf of the Association, including the power of sale. The appointment must be in writing and may be in the form of a resolution recorded in the minutes of a Board's meeting. A foreclosure must comply with the requirements of applicable law, such as Chapter 209 of the Texas Property Code, as amended. A nonjudicial foreclosure must be conducted in accordance with the provisions applicable to the 012527.000000\4825-7787-3706.v1 Page 10 of 42 exercise of powers of sale as set forth in Section 51.002 of the Texas Property Code, as amended, or in any manner permitted by law. In any foreclosure, the Owner is required to pay the Association's costs and expenses for the proceedings, including reasonable attorneys’ fees, subject to applicable provisions of the Bylaws and applicable law, such as Chapter 209 of the Texas Property Code, as amended. The Association has the power to bid on the lot at foreclosure sale and to acquire, hold, lease, mortgage, and convey same.

assessment the late charge, the costs of preparing and filing the action, and in the event a judgment is obtained, such judgmeg assessments. Under no circumstances, Association or the Board of Directors be liab or entity for failure or inability to enforce or § In addition, to the extent permitted b Association, without recourse, a ven of regular assessments and special asse terms hereof. Such liens may befpf proceedings and the eroentey} costs and reasonable attorney er or to another person gnforce any assessments.

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recourse, a ven of regular assessments and special asse terms hereof. Such liens may befpf proceedings and the eroentey} costs and reasonable attorney er or to another person gnforce any assessments.

ppropriate judicial or non-judicial ection therewith, including interest, be chargeable to the Owner in default.

(iii) Novactiqn (shal pebrought to foreclose said lien provided for herein or to procee wer of sale herein provided less than thirty (30) days after th claim of lien is deposited with the postal authority, certified o aib, postage prepaid, addressed to the Owner of said Lot, corded by the Association; said notice of claim must cite g ex thereof, the amount claimed (which may, at the Association's Cold interest on the unpaid assessment at the interest rate provided for Meclafation, plus reasonable attorney's fees and expenses of collection in 9n with the debt secured by said lien), and the name and address of the (iv) Upon the timely curing of any default for which a notice of claim of lien was Recorded by the Association, the Board of Directors is hereby authorized to Record an appropriate release of such notice, upon payment by the defaulting Owner of a fee, to be determined by the Association, to cover the costs of preparing and filing or recording such release.

(v) Upon written request by a first mortgagee, the Board of Directors shall provide the first mortgagee with written notice of any default by the Owner in the performance of such Owner's obligations hereunder, including payment of 10 012527.000000\4825-7787-3706.v1 Page 11 of 42 assessments, which is not cured within thirty (30) days after default; provided that any such requirements of notice shall not impair or affect any rights or remedies

0\4825-7787-3706.v1 Page 11 of 42 assessments, which is not cured within thirty (30) days after default; provided that any such requirements of notice shall not impair or affect any rights or remedies of the Association, including exercise of the same, provided for in this Declaration.

(vi) The lien provided for herein and the right to foreclosure sale hereunder shall be in addition to and not in substitution for all other rights and remedies which the Association and its successors or assigns may have hereunder and by law, including a suit to recover a money judgment for unpaid asse as above provided.

d. Effect of Conveyance. An Owner that conveys title to a liable for assessments that are attributable to the period after the conye shall not affect the assessment lien or relieve the Owner tha personal liability for any assessments attributable to the_peri mortgage, trustee’s sale of a first deed of trust or a deed in lieu thereofwill extwett € lien of such assessment e foreclOSure, trustee’s sale or deed in lieu thereof. However, a foreclosure of a firgt moNgage, trustee’s sale of a first deed of oreclosure, trustee’s sale or deed in stee’s sale of a first deed of trust or a any assessment attributable to the¢py lieu thereof. The foreclosure of a fird deed in lieu thereof shall not release sed in lieu from the Owner’s obligation to pay ior to the date of such foreclosure, trustee’s sale ARTICLE V THE ASSOCIATION ociation - Duties and Powers. The Association is a Texas nonprofit the duties and invested with the powers prescribed by law and set forth $ Formation of the Association (the “Certificate of Formation”), Bylaws and 5.2 Board of Directors. The affairs of the Association shall be conducted by the

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the powers prescribed by law and set forth $ Formation of the Association (the “Certificate of Formation”), Bylaws and 5.2 Board of Directors. The affairs of the Association shall be conducted by the Board of Directors and such officers as the Board of Directors may elect or appoint, in accordance with the Certificate of Formation and the Bylaws. The Board of Directors shall have the powers granted in this Declaration, the Certificate of Formation and the Bylaws, all powers 1] 012527.000000\4825-7787-3706.v1 Page 12 of 42 provided by Texas law and all powers reasonably implied to perform its obligations and/or duties provided herein.

5.3. Limitation on Liability. The liability of an officer, director or committee member of the Association shall be limited as provided in the Certificate of Formation.

5.4 Indemnification. Subject to the limitations and requirements of the Texas Business Organizations Code, as amended, and of the Bylaws, the Association shall indemnify every officer, director and committee member (including, without limitation, the Member(s) of reasonably incurred in connection with any threatened, initiated or filed action, < proceeding (including settlement of any suit or proceeding, if approved by thevTt provided under the Certificate of Formation. Additionally, subje requirements of the Texas Business Organizations Code, as a Association may voluntarily indemnify a person who is or attorney of the Association, against any liability asserted ag; arising out of that capacity.

5.5 Limitations on Litigation. No jud or administrative proceeding shall be commenced or prosecuted by the Association unlg 8 however, to (a) actions brought by the Agsdc (including, without limitation, the foreclo: assessments as provided herein; (c) proceed

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ceeding shall be commenced or prosecuted by the Association unlg 8 however, to (a) actions brought by the Agsdc (including, without limitation, the foreclo: assessments as provided herein; (c) proceed Property Insurance. Blanket property insurance covering loss or amage on a “special form” basis (or comparable coverage by whatever name enominated) for all insurable improvements on the Common Areas and within the Common Maintenance Areas to the extent that the Association has assumed responsibility in the event of a casualty, regardless of ownership. All property insurance policies obtained by the Association shall have policy limits and/or endorsement related thereto sufficient to cover the full replacement cost of the insured improvements. The Association shall obtain endorsements to the property insurance policy to the extent the Board of Directors determines that particular endorsements are advisable and reasonably available to the Association. Such 12 012527.000000\4825-7787-3706.v 1 Page 13 of 42 endorsements may include, without limitation: (i)a Replacement Cost Endorsement with an Agreed Amount Endorsement; (ii) a waiver of the insurer’s right to repair and reconstruct instead of paying cash, if reasonably available; (iii) an Inflation Guard Endorsement; (iv)a Building Ordinance or Law Endorsement; and (v) a Steam Boiler and Machinery Coverage Endorsement.

(ti) |General Liability Insurance. Commercial general liability insurance on the Common Maintenance Areas, insuring the Association and its Members for damage or injury caused by the negligence of the Associatioy Association’s behalf. Such coverage (including primary and a coverage) shall have a limit of at least $1,000,000.00 per occurrg such additional coverage is advisable.

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the negligence of the Associatioy Association’s behalf. Such coverage (including primary and a coverage) shall have a limit of at least $1,000,000.00 per occurrg such additional coverage is advisable.

b. Additional Insurance. The Board 9 own business judgment to determine if such based on the cost and availability of the in the risks associated therewith.

(i) Directors an iability Insurance. Directors and officers liability insuranc and/or the endorsement compared to (ii) urayce. Fidelity insurance covering all parties responsible fo ation funds in an amount determined by the Board of Directors rance coverage is obtained, the policy should contain, a waiver of all defenses based upon the exclusion of if reasonab persons s ft compensation.

lood Insurance. Flood insurance covering any improvements ommon Areas to the extent that the Board of Directors determines (iv) Workers Compensation Insurance. Workers compensation nsurance and employers liability insurance.

c. Policy Requirements. All insurance coverage obtained by the Association shall: (i) be written in the name of the Association and shall provide for a certificate of insurance to be furnished to the Association; (ii) contain a reasonable deductible; (iii) contain an endorsement requiring at least 30 days’ prior written notice to the Association of any cancellation of insurance; (iv) contain a provision or endorsement excluding Owners’ individual policies from consideration under any other insurance 13 012527.000000\4825-7787-3706.v1 Page 14 of 42 clause, if reasonably available; and (v) contain a waiver of subrogation as to any claims against the Board of Directors and the Association’s officers, employees and manager, and the Owners and their tenants, servants, agents and guests, if reasonably available.

brogation as to any claims against the Board of Directors and the Association’s officers, employees and manager, and the Owners and their tenants, servants, agents and guests, if reasonably available.

d. Review of Policies. The Board shall periodically review the types and amounts of insurance coverage for sufficiency.

e. Compliance with Federal Agencies and Secondary Mortgage Market Requirements. In addition to the foregoing insurance in Section 5.6, the Baard of desirable to satisfy any applicable insurance requirements of any federg secondary mortgage market entity, including, without limitation, the Fede ploy for the Association a management agent or agents, at such compensation_asSNh& Board of Directors may establish, to Directors may delegate such powers as but shall not delegate policymaking authors &AgSociation may enter into contracts with Declarant or affiliates of Declarant provided-he ontracts are on market terms.

5.8 bgoks and records of the Association shall be made available to the Members for ifspectignas_pr6vided in the Bylaws. In addition, Members may obtain copies, at a reasongbR Nhespooks and records of the Association as provided in the Bylaws.

5.9 A$sociation; Conveyance of Assets. If the Association is dissolved other thar it t}to a merger or consolidation, the assets both real and personal of the Associatio ehyeyed as provided in the Certificate of Formation.

av, including Chapter 209 of the Texas Property Code, as amended. Specifically, e€ and opportunity for a hearing must be given prior to the Association exercising its remedies if such notice and hearing is required by this Declaration, the By-laws and applicable law, including Chapter 209 of the Texas Property Code, as amended. Such sanctions may include

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cising its remedies if such notice and hearing is required by this Declaration, the By-laws and applicable law, including Chapter 209 of the Texas Property Code, as amended. Such sanctions may include all remedies available at law and/or in equity and all remedies herein, including, without limitation, the following: 012527.000000\4825-7787-3706.v1 Page 15 of 42 a. Fines. The Board of Directors may impose reasonable monetary fines, which shall constitute a lien on the Lot, upon the Owner of the Lot related to or connected with the alleged violation. The Owner shall be liable for the actions of any occupant, guest or invitee of the Owner of such Lot.

b. Suspension of Voting Rights. The Association may suspend an Owner's right to vote, except with respect to any election (i) of members of the Board or (ii) concerning such Owner’s rights and responsibilities.

C Suspension of Rights to Use Common Area. The Board of B Common Areas; provided, however, nothing herein shall authorize the Bed to limit ingress or egress to or from a Lot.

d. Right of Self-Help. The Board of Directors take action to enter upon the Lot to abate any violation of thi eC: Right to Require Removal. The Boé ectOrs may require an Owner, at the Owner’s expense, to remove any ' improvement on such Owner’s Lot in violation of this Declaratign and condition and, upon failure of the Owner to@ shall have the right to enter the Lot, remove substantially the same condition as previow a trespass. © fi. Levy Specific As € Board of Directors may levy a specific assessment to cover costs incu y sociation in bringing a Lot into compliance with this Declaration.

ed without such action being deemed

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© fi. Levy Specific As € Board of Directors may levy a specific assessment to cover costs incu y sociation in bringing a Lot into compliance with this Declaration.

ed without such action being deemed n or Damages. The Board of Directors has the right, ing’ suit at law or in equity to enjoin any violation or to both.

The decision to pursue enforcement action, including the commencement of legal proceedings, in any particular case shall be left to the Board of Directors’ sole and absolute discretion, except that the Board of Directors shall not be arbitrary or capricious in taking enforcement action. Without limiting the generality of the foregoing sentence, the Board of Directors may determine that, under the circumstances of a particular case, (i) the Association’s position is not strong enough to justify taking any or further action; or (ii) the covenant, restriction or rule being enforced is, or is likely to be construed as, 13 Page 16 of 42 inconsistent with applicable law; or (iii) although a technical violation may exist or may have occurred, it is not of such a material nature as to be objectionable to a reasonable person or to justify expending the Association’s resources; or (iv) it is not in the Association’s best interests, based upon hardship, expense or other reasonable criteria, to pursue enforcement action. Such a decision shall not be construed a waiver of the right of the Association to enforce such provision at a later time under other circumstances or preclude the Association from enforcing any other covenant, restriction or rule.

ARTICLE VI ARCHITECTURAL CONTROLS 6.1 No Improvements Unless Approved by Architectural Con Except Improvements by Declarant. No building, fence, wall, outbuilding Ag

her covenant, restriction or rule.

ARTICLE VI ARCHITECTURAL CONTROLS 6.1 No Improvements Unless Approved by Architectural Con Except Improvements by Declarant. No building, fence, wall, outbuilding Ag or repaired upon any portion of any Lot without the prior written conse ACA approval is not required for (1) any improvements constructe a Dwelling, except as provided herein; (iii) the painting or re-bricking of the exte Dwelling in accordance with the color and design scheme approved by the Declaration expressly states that the ACA’s prior a pursuant to clauses (iii) and (iv) immediately prece applicable ACA Standards.

6.2 Architectural Control Authority. CA shall have the sole and exclusive authority to perform the functions contepapha aN € ACA in this Declaration. The purpose of the ACA is to enforce the architectural sfandétd’.6f the Property and to approve or disapprove plans for improvements propos Sie The ACA will have the authority to delegate its duties or to retain the servi esSional engineer, management company, architect, assist in the performance of its duties. The cost of such al is not required. Any improvements must be in compliance with any Reel rant - During Development Period. The Declarant shall be the he Deyv€lopment Period, unless the Declarant in writing has terminated its and designated the ACA in its place.

’ Architectural Committee - After the Development Period. The tural Committee (as defined herein) shall be the ACA after the Declarant’s right aet gs the ACA has either expired or voluntarily been terminated.

6.3 Architectural Committee. A committee to be known as the “Architectural Committee” consisting of a minimum of three members will be established after the Declarant’s

Page 17

or voluntarily been terminated.

6.3 Architectural Committee. A committee to be known as the “Architectural Committee” consisting of a minimum of three members will be established after the Declarant’s right to act as the ACA has terminated. The members of the Architectural Committee will be appointed, terminated and/or replaced by the Board of Directors. The Architectural Committee will act by simple majority vote.

16 012527.000000\4825-7787-3706.v1 Page 17 of 42 6.4 Submission of Plans. Prior to the initiation of construction of any work required to be approved by the ACA as provided in Section 6.1 above, the Owner (excluding Declarant and any Builder designated in writing to be exempt from the ACA approval requirements as provided herein) will first submit to the ACA a complete set of plans and specifications for the proposed improvements, including site plans, landscape plans, exterior elevations, specifications of materials and exterior colors, and any other information deemed necessary by the ACA for the performance of its function. In addition, the Owner will submit the identity of the individual or company intended to perform the work and projected commencement and completion dates.

This approval process is separate and independent of any approval process requir, governmental entity.

6.5 Plan Review.

said plans. No correspondence or request for approva received until all requested documents have actually Kegn fails to provide such information prior to the date application shall be deemed denied. If the, denied, then the applicant shall be required to\e-8 pply if the applicant still desires to have the ACA consider the request. If the ACA_fartls t& issue its written approval within 45 days after the ACA’s receipt of all mafépals xequed

Pages 17–18

required to\e-8 pply if the applicant still desires to have the ACA consider the request. If the ACA_fartls t& issue its written approval within 45 days after the ACA’s receipt of all mafépals xequed submission, then such failure by o>AC disapproval. The ACA may charge afceagon ee for reviewing requests for approval.

Aesthetics. The proposed improvements will the ACA: (i) the improvements will be of an aterial that are aesthetically compatible with the s (ii) the improvements will not violate any term herein é 4) the improvements will not result in the reduction in b. Approval Consf be approved if, in thg +? Oo nA improvements in the or in the ACA Sta property value, yse based on purg conclusive d etisconsiderations. The ACA shall have the authority to make final ing determinations on matters of aesthetic judgment and such Timing of Completion of Approved Items. All work approved by the ACA shall be completed within one year after the approval by the ACA or such shorter period that the ACA may specify in the notice of approval, unless the completion is delayed due to causes beyond the reasonable control of the Owner, as determined by the ACA. Al] work and related improvements shall be in compliance with the items approved by the ACA.

17 012527.000000\4825-7787-3706.v1 Page 18 of 42 6.7 Improvements Impact on Drainage. With respect to any improvements performed on a Lot and/or any alterations to the yard, the Owner shall take proper precautions to insure that such improvements do not (i) alter the surface water drainage flows of a Lot as originally established at the time of the initial construction of the Dwelling, or (ii) allow water to collect near the foundation of the Dwelling. Although the ACA may comment on and/or deny

a Lot as originally established at the time of the initial construction of the Dwelling, or (ii) allow water to collect near the foundation of the Dwelling. Although the ACA may comment on and/or deny the approval of plans because of the impact of the proposed improvements or alterations on surface water drainage, the ACA’s comments or approval shall not constitute or be construed as a representation, warranty or guaranty that adverse surface water drainage problems will not occur and shall not be relied upon as such. The Owner is responsible for taking the e actions in order to avoid any surface water drainage problems, including, without Ji engaging the services of a qualified consultant.

6.8 No Waiver. The approval by the ACA of any plans, drawing for any work done or proposed, or for any other matter requiring the appro 6.9 Variances. The ACA may authorize varia requirements herein, in any ACA Standards or any circumstances where the design meets the intent of the any governmental —— the issuance of py, primary reason for requesting a variance variance. No variance shall be contrar eo this Declaration and no variance shall be effective unless in writing. Nogeari stép the ACA from denying a variance in other circumstances.

iro hority Standards. The ACA may, from time to time schetid 4, adopt, amend and repeal, by unanimous vote or written e“ACA Standards. The ACA Standards may not conflict with 6.10 Architect and in its sole and absol consent of members of th * Non-Conforming and Unapproved Improvements. If there are srial deviations from the approved plans in the completed improvements, CA in its sole and absolute discretion, such improvements will be in to the same extent as if made without prior approval of the ACA.

Page 19

deviations from the approved plans in the completed improvements, CA in its sole and absolute discretion, such improvements will be in to the same extent as if made without prior approval of the ACA.

or any Owner may maintain an action at law or in equity for the removal or fi) the non-conforming improvement or alteration, and/or (ii) any improvement or ato any improvement on any Lot that is not approved by the ACA.

6.12 Limitation of Liability. Neither the Declarant, the Association, the Board of Directors nor the ACA shall have any liability, individually or in combination, for (1) decisions made by (or failed to be made by) the Declarant, the Association, the Board of Directors or the ACA, or (ii) decisions in connection with the approval or disapproval or failure to disapprove or approve any plans and specifications submitted. Neither the Declarant, the Association, the 18 012527.000000\4825-7787-3706.v1 Page 19 of 42 Board of Directors nor the ACA shall bear any responsibility for ensuring the structural integrity or soundness of approved construction or modifications or the adequacy of soils or drainage, nor for ensuring compliance with building codes and other governmental requirements. Neither Declarant, the Association, the Board of Directors, the ACA nor any member of the foregoing shall be held liable for any injury, damages or loss arising out of the manner or quality of approved construction on or modifications to any Dwelling and/or Lot. The ACA and its members shall be defended and indemnified by the Association as provided in Section 5.4 herein. _— Section 6.13 Siding Limitation. No house or other building shall be construckedion a street or road.

ARTICLE VII USE RESTRICTIONS AND COVE Fol Single Family Residential Use. All Lots will be used and

Pages 19–20

Section 6.13 Siding Limitation. No house or other building shall be construckedion a street or road.

ARTICLE VII USE RESTRICTIONS AND COVE Fol Single Family Residential Use. All Lots will be used and occupied for single-family residential purposes only and no ness may be conducted in or from any Lot and/or Dwelling, except that an Owner of th g may conduct business activities within the Dwelling so long as: (i) the exi or operation of the business activity is not apparent or detectable by sight, sound or smell tside the Dwelling; (11) the business involve unreasonable visitation to or fro e by clients, customers, suppliers or other business invitees; and (iv) the business activityN and does not diminish the residential ck e Property or constitute a nuisance, or a urity or safety of the other residents in the ess activity satisfies the foregoing requirements be made by the Board of Directors in its sole and ¥ prohibition will not apply to the use of any Dwelling arking of Motor Vehicles. No vehicles or similar equipment will be parked or stored ‘i-atf area visible from any street within the Property, except passenger automobiles, motorcycles, passenger vans and pick-up trucks may be parked in any garage or driveway if such vehicle (i) has less than one ton carrying capacity; (ii) has less than three axles; (iii) is in operating condition; and (iv) is generally in daily use as a motor vehicle on the streets and highways of the State of Texas. Trucks with tonnage in excess of one ton and any vehicle with a painted advertisement shall not be permitted to park overnight within the Development except those used by a Builder during the construction of improvements. No vehicles, trailers, 19 012527.000000\4825-7787-3706.v1 Page 20 of 42

ot be permitted to park overnight within the Development except those used by a Builder during the construction of improvements. No vehicles, trailers, 19 012527.000000\4825-7787-3706.v1 Page 20 of 42 implements or apparatus may be driven or parked in the Common Areas, the Common Maintenance Areas or on any easement unless such vehicle, trailer, implement or apparatus is in use for maintaining such area or easement; provided, however, that this restriction will not apply to any driveways, roads, parking lots or other areas designated by the Board of Directors as intended for such vehicular use. No abandoned, derelict or inoperable vehicles may be stored or located on any Lot or a street within the Property, except within an enclosed garage. No dismantling or assembling of motor vehicles, boats, trailers, recreational vehicles, or other machinery or equipment will be permitted in any driveway or portions of any Lot that are visible from any street within the Property.

73 Trailers, Boats, Commercial and Recreational Vehicles.

marine crafts, hovercraft aircrafts, pick-up campers, trailers, motor homes, trave bodies, golf carts, recreational vehicles, non-passenger vehicles, vehicles maintenance or repair of a Dwelling or Lot in the iy will have the absolute authority to determine from condition and complies with the requirements in clause otherwise brought into compliance with used as a residence or office temporarily or no trucks or vehicles of any size that t the Development at any time. © 7.4 Fences.

ssoction Fencing, which fencing shall be no less than four feet in height) shall six and eight feet in height unless another height is approved by the ACA and elotif or agricultural fences may be built or maintained on any Lot unless such fence is

Page 21

s than four feet in height) shall six and eight feet in height unless another height is approved by the ACA and elotif or agricultural fences may be built or maintained on any Lot unless such fence is located within the perimeter fence in such a manner that it is not visible from any street, alley, park, Common Area or public area, unless otherwise approved by the ACA.

Except for Association Fencing, the portion of all fences which exterior or side faces a street adjoining such Owner’s Lot (front, side or rear streets, but not alleys) or which exterior or side faces a Common Area, open space, park or other recreational area adjoining such Owner’s Lot (which area may be separated by an alley) shall have the 20 012527.000000\4825-7787-3706.v1 Page 21 of 42 smooth surface of the fence materials facing the applicable street or Common Area unless otherwise approved by the ACA. The fence posts and bracing boards on such front, side and rear fences shall face the interior of the fenced yard. Owners shall not construct a second fence (a parallel fence) along or near the Common Fence or the Association Fencing.

c. Location of Fence. No fence, wall or hedge will be placed on any Lot in a location nearer the street than the front building setback line for such Lot. The foregoing shall not limit or restrict fences erected in conjunction with model sales offices. In addition to the foregoing, easements may also restrict the plac fences.

maintenance as provided in Section 7.4.e. The Ag maintaining the Association Fencing and the City shé Association Fencing. All repairs and replaceme Association Fencing must be done using the sa This includes the prohibition against materials.

nd rear yard fences that are installed by 0 separate adjacent Lots as a common boundary

Pages 21–22

irs and replaceme Association Fencing must be done using the sa This includes the prohibition against materials.

nd rear yard fences that are installed by 0 separate adjacent Lots as a common boundary € maintained jointly by the Owners whose Lots he costs associated therewith shall be shared equally by Declarant or a Builde fence (the “Com adjoin such Com Owner may () pia Svépair or replacement (provided any applicable ACA approval is obtained) a gollection of one-half of the cost of repair or replacement at f. Sight Lines. No fence, wall, hedge or shrub planting which obstructs sight lines at elevations between three and six feet above the roadway shall be placed or permitted to remain on any corner lot within the triangular area formed by the street right-of-way lines and a line connecting them at points ten feet from the intersection of the street right-of-way lines, or in the case of a rounded property corner, from the intersection of the street right-of-way lines as extended. The same sight-line limitations shall apply on any lot within ten feet from the intersection of a street right-of-way line 21 012527.000000\4825-7787-3706.v1 Page 22 of 42 with the edge of a private driveway or alley pavement. No tree shall be permitted to remain within such distance of such intersections unless the foliage line is maintained at sufficient height to prevent obstruction of such sight lines. Declarant or the Association may direct the Owner to trim any hedge, shrub planting or tree that does not comply with the foregoing provisions, and upon Owner's failure to do so, Declarant or the Association may, at its option, perform such trimming, whereupon the Owner shall be obligated, when presented with an itemized statement, to reimburse Declarant or the Association (as

Declarant or the Association may, at its option, perform such trimming, whereupon the Owner shall be obligated, when presented with an itemized statement, to reimburse Declarant or the Association (as applicable) for the cost of such work.

7.5 Outbuildings, Sheds and Detached Buildings. No detached_ adcégsory buildings, including, but not limited to, detached garages, storage buildings and sKe erected, placed or constructed upon any Lot, unless (i) the item is approved by the installation or construction of the item; (ii) such item is compatible wy pets that are permitted to roam free or that, i objectionable noise, endanger the healtk0 source of annoyance to the ocgay antg request of the Board of Directors ts shall be removed from the Lot upon the 41 owner fails to remove the animal from the Lot Beard of Directors may remove the animal, in addition thorized by the Declaration and the Bylaws. Animals property so that no person shall quarter on the Property cows, horses, bees, hogs, she Coe inea fowls, ducks, chickens, turkeys, skunks or any other nonwl laws) gntd irackordand¢s with all rules established by the Association. All persons bringing an the Cqmrifon Maintenance Areas shall be responsible for immediately removing any a 4 a. Sign Restrictions. Except for Entry Signs (as defined in Section 7.7.b), no signs, billboards, posters or advertising devices of any character shall be erected on any Lot except (i) one sign of not more than five (5) square feet, advertising the property for sale or rent, (ii) signs used by a builder to advertise the property for sale during the construction and sales period and (iii) one sign advertising a political candidate or ballot item for an election (a “Political Sign”). Any Political Sign may only be displayed on or 22

Page 23

ale during the construction and sales period and (iii) one sign advertising a political candidate or ballot item for an election (a “Political Sign”). Any Political Sign may only be displayed on or 22 012527.000000\4825-7787-3706.v1 Page 23 of 42 after the 90th day before the election to which the sign relates and for 10 days after such election. All Political Signs must be ground-mounted, and may not: Q) contain roofing material, siding, paving materials, flora, one or more balloons or lights, or any other similar building, landscaping, or nonstandard decorative component; (2) be attached in any way to plant material, a traffic control device, a light, a trailer, a vehicle, or any other existing structure or object; (3) include the painting of architectural surfaces; (4) threaten the public health or safety; (5) be larger than four feet by six feet; (6) violate a law; (7) contain language, graphics, or any dig puld be offensive to the ordinary person; or (8) be accompanied by music or 0 ounds or by streamers or otherwise be distracting to motorists.

Declarant shall have the righ? o kety any liability or damages for tresf from such removal. The Aig t i the Declarant, which wih areasonig billboards, or advg for the purpose of advertising for sale dwellings hiiders’s previously sold by such builder.

of the ‘subdivision that are placed by the Declarant or its agents on the e kss0 idtion shall be responsible for maintaining the Entry Sign.

ping ground for rubbish. No garbage or trash shall be placed or kept on vered sanitary containers. In no event shall such containers be stored, kept, ained on any Lot where visible from the location on the street that is immediately é the Dwelling except on the day designated for removal of garbage; then such

Pages 23–24

shall such containers be stored, kept, ained on any Lot where visible from the location on the street that is immediately é the Dwelling except on the day designated for removal of garbage; then such containérs-fay be placed in the designated location for pick-up of such garbage, provided that the container will be removed from view before the following day. All incinerators or other equipment for the storage or other disposal of garbage or trash shall be kept in a clean and sanitary condition. Materials incident to construction of improvements may be stored on Lots during construction by Declarant or any builder designated by Declarant.

ga 012527.000000\4825-7787-3706.v1 Page 24 of 42 79 Nuisances. No noxious or offensive activity, including, without limitation, unreasonable smells, noise or aesthetics, will be carried on upon any Lot, nor will anything be done thereon which the Board of Directors determines, in its sole and absolute discretion, is or may become an unreasonable source of annoyance or nuisance to the Property.

7.10 Antennae and Satellite Dishes. Except with the written permission of the ACA or as provided herein, exterior antennae, aerials, satellite dishes or other apparatus for the transmission or reception of television, radio, satellite or other signals of any kind may not be placed on the exterior of any Dwelling or on any portion of the Lot outside the Dwellinggexcept non-visibility requirement without precluding reception of a Owner may install the Permitted Device in the least conspi¢ where an acceptable quality signal can be obtained. In all ¢ the ACA, no Permitted Device of any style shall b portion of the Lot forward of the front building } Ae. ACA in the ACA Standards may

Pages 24–25

nspi¢ where an acceptable quality signal can be obtained. In all ¢ the ACA, no Permitted Device of any style shall b portion of the Lot forward of the front building } Ae. ACA in the ACA Standards may include rules or provisions regarding the typ¢ al Permitted Devices and/or the placement of Permitted Devices, provid Standards do not conflict with the terms of this Section 7.10 and do not unreasg ase the cost of installation, maintenance or use of the Permitted Device. A Pepfiitte "ce that complies with the provisions of this paragraph and the ACA Stand. she eqtiire the ACA’s approval prior to installation.

However, the ACA shall be ut nd*e sive authority for purposes of determining if the item or device complies wih {hep jofis-Of this paragraph and the ACA Standards.

7.11 Air-Condit ground behind the reas-of the efling or on the ground near the side of the Dwelling. No air-conditioning app¢ any Dwelling.

0 llectors; Roofing. During the Development Period, no “Solar Energy caWéd) as defined in Section 171.107 of the Texas Tax Code, may be installed the approval of the ACA. Thereafter, an Owner may install a Solar Energy ot with the prior approval of the ACA, which will be granted unless the Solar > qi) as adjudicated by a court: (A) _ threatens the public health or safety; or (B) violates a law; 24 012527.000000\4825-7787-3706.v1 (2) (3) (4) (5) (6) (7) (8) (9) 7.13 Page 25 of 42 is located on property owned or maintained by the Association; is located on property owned in common by the Members of the Association; is located in an area on the Owner’s property other than: (A) on the roof of the home or of another structure allowed under this Declaration; or (B) ina fenced yard or patio owned and maintained by the Owner; if mounted on the roof of the home:

Pages 25–26

y other than: (A) on the roof of the home or of another structure allowed under this Declaration; or (B) ina fenced yard or patio owned and maintained by the Owner; if mounted on the roof of the home: (A) extends higher than or beyond the roofline; (B) _ is located in an area other than an area designé unless the alternate location increases-the a dublicly available e Energy Laboratory, by (C) does not conform to the slop oof and has a top edge that is not parallel to the root or (D) _ has a frame, a suppo ack visible piping or wiring that is not in a ilver, , or bfacly tone sommonly available in the marketplace; ines in writing that placement of the device as proposed by the tes a condition that substantially interferes with the use and of land by causing unreasonable discomfort or annoyance to persons of dxy sensibilities. For purposes of making a determination under this ection, the written approval of the proposed placement of the device by all wners of adjoining property constitutes prima facie evidence that such a ondition does not exist.

No Temporary Structures as a Residence. No structure of a temporary character, including, without limiting the generality thereof, any trailer, basement, tent, shack, garage, barn, or other out-building will be used on any Lot at any time as a residence, either temporarily or permanently; except that camping out in a tent that is erected in the back yard behind a fully screened fence is permitted provided that such activity does not become or constitute a nuisance or unreasonable source of annoyance to the occupants of other Lots as 25 012527.000000\4825-7787-3706.v1 Page 26 of 42 determined by the Board of Directors in its sole and absolute discretion. This restriction will not

urce of annoyance to the occupants of other Lots as 25 012527.000000\4825-7787-3706.v1 Page 26 of 42 determined by the Board of Directors in its sole and absolute discretion. This restriction will not be interpreted to limit the right of Declarant or any Builder to use trailers or outbuildings as sales offices, selection center offices, construction offices or material storage facilities, 7.14 No Garage as a Residence. No garage, garage house or other out-building (except for sales offices and construction trailers during the construction period) shall be occupied by any Owner, tenant or other person as a residence.

7.15 No Temporary Structures on Lot. No temporary dwelling, shop, t playhouses, dog houses, greenhouses, gazebos and buildings for storage of lawndna equipment, which may be placed on a lot only in places which are not visible frort which the lot fronts) shall be permitted on any Lot except that the Builder or ge thereof is ready to commence construction of improvemenf placed within the property lines of the Lot upon which the i be sodded or grassed within a initial conveyance of a Lot with a 7.17 Landscaping Maintenance. A reasonable time period not to exceed thr Dwelling thereon to an Owner other than “a flower beds and planters with mulch rather 10% of the total area of the frontand ¢ All landscaping located on any Lot, including times by the Owner of such Lot in a trimmed, ned-by the Board of Directors, in its sole and absolute ikubs, trees, grass and plantings of every kind on his or of trash and other unsightly material. In addition, each lanting of the new tree within such 30-day period then the new tree shall be e weather or seasonal conditions permit).

Kept in good condition and repair and adequately painted or otherwise maintained by

Page 27

nting of the new tree within such 30-day period then the new tree shall be e weather or seasonal conditions permit).

Kept in good condition and repair and adequately painted or otherwise maintained by the Owner of such Lot in a presentable well-kept and clean condition, as determined by the Board of Directors, in its sole and absolute discretion.

7.19 Garages. Each Dwelling must have a garage that will accommodate a minimum of two (2) automobile(s). All garages must comply with City requirements. Garages may be used as Declarant’s or a Builder’s sales offices prior to permanent occupancy of the main 26 012527.000000\4825-7787-3706.v1 Page 27 of 42 structure; however, sales offices must be converted to garages prior to permanent occupancy.

With the exception of periods when garages are used by the Declarant or Builder as sales offices, all garages will be maintained for the storage of automobiles, and no garage may be enclosed or otherwise used for habitation. No carports are permitted on a Lot.

7.20 Clothes Hanging Devices. No clothes hanging devices exterior to a Dwelling are to be constructed or placed on the Lot.

7.21 Window Treatment. No aluminum foil, newspaper, reflective film orssimilar treatment will be placed on windows or glass doors of a Dwelling. Bed sheets and similar may only be used during the first 30 days after the Owner acquires title to the Lot.

structure designed for use in boring for oil or natural gas will be erected Gaitys inethop permitted Miay\besmdivtained on any of the Lots above the surface of the ground.

7.23 Mail Boxes. Mailboxes shall be of similar type ginally installed, unless the ACA approves additional types of mailboxes.

facilities such as playscapes, swing sets Re item is placed within a backyard that has &fén

Pages 27–28

Mailboxes shall be of similar type ginally installed, unless the ACA approves additional types of mailboxes.

facilities such as playscapes, swing sets Re item is placed within a backyard that has &fén location and the item does not exceed ten 7.25 No Abo installed on any Lot, discretion athe eft for lights and decorations within the interior of a Dwelling that are not 4 window, lights and decorations that are erected or displayed on a Lot in weeks in advance of that specific holiday and must be removed within 30 days after the holiday has ended.

7.27 Lawn Decorations and Sculptures. The Owner must have the approval of the ACA to place any decorations, sculptures, fountains, flags and similar items on any portion of such Owner’s Lot except the interior of the Dwelling, unless (i) such item is placed within a 27 012527.000000\4825-7787-3706.v1 Page 28 of 42 backyard completely enclosed by a fence which blocks the view of the item at ground level; and (ii) such item is no taller than the fence.

7.28 Flags, Flagpoles. Except as permitted herein, without the approval of the ACA an Owner may not install a flagpole or fly a flag or banner on such Owner’s Lot. Without the approval of the ACA an Owner may display (i) a flag of the United States of America in accordance with U.S.C. Sections 5-10, Gi) a flag of the State of Texas in accordance with Chapter 3100, Texas Government Code, and (iii) an official or replica flag of any branch of the United States armed forces. Any of the flags described in the foregoing sentence are refékred to herein as “Official Flags”.

Official Flags may be displayed only in accordance with the following regtirémeé (1) a flagpole attached to a dwelling or a freestanding flagpole mu: ‘ey ! of permanent, long-lasing materials, with a finish appropriate

Pages 28–29

be displayed only in accordance with the following regtirémeé (1) a flagpole attached to a dwelling or a freestanding flagpole mu: ‘ey ! of permanent, long-lasing materials, with a finish appropriate the construction of the flagpole and harmonious with the (ii) the display of a flag, or the location and conf must comply with applicable zoning ordink record; sements, and setbacks of is flown must be maintained in good gted or structurally unsafe flagpole (iii) a displayed flag and the flagpole on wh condition and any deteriorated flag’or detex must be repaired, replaced, gyre : agpole per Lot and it may not exceed 20 (iv) | an Owner may only instal PN of feet in height; } (v) i ispraye € approved by the ACA; (vi) ensity of any lights used to illuminate a displayed flag ce ACA; (vii) adypt reasonable restrictions to abate noise caused by an external may not locate a displayed flag or flagpole on property that is: ( owned or maintained by the Association; or owned in common by the members of the Association.

7.29 Decorations. No Lot may contain any items intended to be decorative (except for (i) flags and banners as approved above or by the ACA, (ii) Religious Items approved below, and (iii) landscaping permitted by this Declaration) which are visible from any street, without the approval of the ACA. Items which are intended to be decorative shall include, but not be limited to, plastic birds or flamingos, artificial plants or flowers, fountains, windsocks, lawn jockeys, topiaries, more than six (6) plant containers and statuary.

28 012527.000000\4825-7787-3706.v 1 Page 29 of 42 Notwithstanding the foregoing to the contrary, an Owner may place decorations on their Lot in connection with the celebration of a holiday approved by the ACA provided such

7787-3706.v 1 Page 29 of 42 Notwithstanding the foregoing to the contrary, an Owner may place decorations on their Lot in connection with the celebration of a holiday approved by the ACA provided such decorations are removed within thirty (30) days after the holiday and are set up no sooner than forty-five (45) days prior to the holiday.

7.30 Display of Religious Items. An Owner may display or affix on the entry to the Owner’s dwelling one or more religious items “Religious Items” the display of which is motivated by the Owner’s sincere religious belief. The display or affixing of a Religious Item on the entry to the Owner’s dwelling shall not threaten the public health or safety, violateya law, location other than the entry door or door frame or extend past the outer edge of t me of the Owner’s dwelling, or individually or in combination with each othe } 7.31 No Lot Consolidation or Division. No Owne any Lot and/or consolidate any adjoining Lots and/or, (i) alter the surface water drainage flows of a initial construction of the Dwelling; or (wynst¢ interfere with, obstruct or divert drainage foregoing shall not prevent or limit th dscaping or other improvements that may { BI) C from performing any grading work and/or t.

sifically, no such construction activities will be deemed to on of this Declaration by reason of noise, dust, presence of construction upon any Lot does not conform to usual practices in the the Board of Directors in its sole good faith judgment, the Board of e authority to obtain an injunction to stop such construction. In addition, if ray contract for or cause such debris to be removed, and the Owner of such Lot will be liable for all expenses incurred in connection therewith.

Page 30

n injunction to stop such construction. In addition, if ray contract for or cause such debris to be removed, and the Owner of such Lot will be liable for all expenses incurred in connection therewith.

7.34 No Individual Water Supply System. No individual water supply system shall be permitted in the Development.

29 012527.000000\4825-7787-3706.v1 Page 30 of 42 7.35 No Individual Sewage Disposal System. No individual sewage disposal systems shall be permitted in the Development.

7.36 New Construction Only. Except for children’s playhouses, dog houses, greenhouses, gazebos and buildings for storage of lawn maintenance equipment (no higher than six feet and not visible from street level), no building previously constructed elsewhere shall be moved onto any Lot, it being the intention that only new construction be placed and erected thereon.

7.37 No Burning. Except within fireplaces in the Dwelling and except for cooking, no person shall be permitted to burn anything within the Development.

7.38 No Interference with Easements. Within easements on each development of the Property and the construction an 7.40 Burglar Bars. No burglar bars or_s attachments may be made to any Dwelling at any time.

eT pipeline facilities, is not open to the ké Association or any provision of this Gathering, LLC has the right to use the pany, and its successors and assigns shall not be poses previously granted to such company. The é me sible for the day-to-day upkeep and maintenance of atecd\to Ynaintain such property to the standards set forth in all 7.41 Pipeline Lot. The Pipeline public, and is not subject to the jurisgi Declaration other than this Section 7/44 Pipeline Lot for pipeline activi KS and\said cd prevented from using the Pipg¢ owner of the Pipeline Lo

Pages 30–31

The Pipeline public, and is not subject to the jurisgi Declaration other than this Section 7/44 Pipeline Lot for pipeline activi KS and\said cd prevented from using the Pipg¢ owner of the Pipeline Lo said property and shall bs applicable City regulations: ARTICLE VIII COMMON AREAS on to Hold and Maintain. The Association will own all Common e title. The Association shall maintain the Common Areas and any andscaping thereon in good repair. The Association shall also maintain the tenance Areas to the extent the Board of Directors determines that such Maintenance Areas shall be the Association's responsibility, regardless if such cost was incurred during the Development Period.

8.2 Use of Common Areas at Own Risk. Each Owner, by acceptance of a deed to a Lot, acknowledges that the use and enjoyment of any Common Area recreational facility involves risk of personal injury or damage to property. Each Owner acknowledges, understands, 30 012527.000000\4825-7787-3706.v1 Page 31 of 42 and covenants to inform its tenants and all occupants of its Lot that the Association, its Board of Directors and committees, Declarant, and any Builder are not insurers of personal safety and that each person using the Common Areas assumes all risks of personal injury and loss of or damage to property, resulting from the use and enjoyment of any recreational facility or other portion of the Common Areas. Each Owner agrees that neither the Association, the Board of Directors and any committees, any Builder, nor Declarant shall be liable to such Owner or any person claiming any loss or damage, including, without limitation, indirect, special or consequential loss or damage arising from personal injury, destruction of property, trespass, loss of enjoyment, or any

claiming any loss or damage, including, without limitation, indirect, special or consequential loss or damage arising from personal injury, destruction of property, trespass, loss of enjoyment, or any other wrong or entitlement to remedy based upon, due to, arising from or otherwise refating to the use of any recreational facility or other portions of the Common Areas, includj limitation, any claim arising in whole or in part from the negligence of th Declarant or any Builder. THE FOREGOING RELEASE IS INTENDE THE SPECIFIED PARTIES FROM LIABILITY FOR THEIR OWN N 8.3 Condemnation of Common Areas. In the event of lieu thereof of all or any portion of the Common Areas, the fuads will be payable to the Association and will be used by the A Common Areas to replace that which has been condemned, remaining Common Areas any improvements thaf“Were on oxdemned Common Areas, to each Owner on a pro rata basis.

8.4 Damage to Common Areas. If Te Ce n Areas or improvements on the Common Maintenance Areas are damage i eAnsurance proceeds sufficient to repair such damage to its prior condition, then the f or reconstructed unless there is a 67% orgrea of Members who are voting in person or by proxy at a meeting duly called ety his at Which a quorum is present (all classes counted together) within 90 days after/e 63s not te repair or reconstruct such dgmat¢ atfernative improvements are authorized, the damaged of§al] ebtisAnd ruins and thereafter shall be maintained by the pndition. Any insurance proceeds remaining after paying Association in a neat anda the costs of repair ore eof Common Areas by Declarant to Association. Declarant shall y title to any portion of the Property owned by Declarant, or any easement

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after paying Association in a neat anda the costs of repair ore eof Common Areas by Declarant to Association. Declarant shall y title to any portion of the Property owned by Declarant, or any easement conveyarice shall be effective upon recording the deed or instrument of conveyance in the public land records of the County.

8.6 Annual Inspection of Common Area - Budget. From the period commencing at the expiration of the Development Period until 10 years thereafter, the Association shall at least annually examine the condition of the Common Area to evaluate the quality, frequency, and adequacy of maintenance performed during the preceding year, and to recommend maintenance 31 012527.000000\4825-7787-3706.v1 Page 32 of 42 for the upcoming year. The examination and report may be performed by one or more experts hired by the Association for this purpose, such as a professional property manager, an engineer, or professional contractors such as landscapers and brick masons. Within 15 days after performing the inspection, the expert should submit to the Board a written report with findings and recommendations. The Board should evaluate the Association's operating budget and reserve accounts for maintenance, repair, and replacement in light of the expert's findings and recommendations. Any decision by the Board to reduce or defer recommended maintenance should be made with an evaluation of the potential consequences for future costs and deterioration. An expert's report is a record of the Association that is available to O s for inspection and copying.

ARTICLE IX EASEMENTS right to grant perpetual, nonexclusive easements as reasoné Declarant or its designees, upon, across, over, through and Areas for the construction, installation, use and maintend on of the Common

ENTS right to grant perpetual, nonexclusive easements as reasoné Declarant or its designees, upon, across, over, through and Areas for the construction, installation, use and maintend on of the Common ies, including, without drainage related structures and improvements. TheSAsSciation Will also have the right to grant the easements described in this paragraph.

9.2 Easement to Correct ae owns any real property within the Devel q Declarant and any Builder, a blanket eas ef and under the ground within the Property (excluding the area where the Rwelli } as reasonably necessary to maintain and correct drainage of surface w; eR hey? grosion controls in order to maintain reasonable standards of health, safety a d will be entitled to remove trees or vegetation, fey ages, as may be necessary to provide adequate drainage Caasechb}o7 due to the exercise of the foregoing drainage easement rights shall be promptly kes) by the party exercising such easement rights after completing its construction acHVitieNin tHe t for Right to Enter Lot. If an Owner fails to maintain the Lot as required ‘herdi in the event of emergency, the Association will have the right to enter upon t gake Emergency repairs and to do other work reasonably necessary for the proper mal and operation of the Property. Entry upon the Lot as provided herein will not be deemetha_treSpass, and the Association will not be liable for any damage so created unless such damage is caused by the Association’s willful misconduct or gross negligence. THE FOREGOING RELEASE IS INTENDED TO RELEASE THE ASSOCIATION FROM LIABILITY FOR ITS OWN NEGLIGENCE.

9.4 Temporary Easement to Complete Construction. All Lots will be subject to an easement of ingress and egress for the benefit of Declarant, its employees, subcontractors, 32

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Y FOR ITS OWN NEGLIGENCE.

9.4 Temporary Easement to Complete Construction. All Lots will be subject to an easement of ingress and egress for the benefit of Declarant, its employees, subcontractors, 32 012527.000000\4825-7787-3706.v1 Page 33 of 42 successors, and assigns, over and upon the front, side and rear yards of the Lots as may be expedient or necessary for the construction, servicing and completion of Dwellings and landscaping upon adjacent Lots, provided that such easement will terminate as to any Lot 24 months after the date such Lot is conveyed to an Owner other than a Builder. Any damage to a Lot caused by Declarant due to exercise of the foregoing completion easement rights shall be promptly repaired by the party exercising such easement rights after completing its construction activities in the damaged area.

Association Fencing.

9.6 Easement for Right to Enter and Inspect Common Areg years after the date of the expiration of the Development Period, Decl but not the obligation, to enter upon the Common Area for pu apd repairing the Common Area and/or any improvements thereon at Dec provided; however, nothing contained herein shall obligate Declarant to make a or repairs ARTICL ANNEXATION AND thereof into the Association and subject suc hereof and to such other terms, coveng imposed thereon by Declarant.

than the owner of the proper i tre S, easements and restrictions as may be not require the approval of any person other A. In the annexation document, Declarant may ammon Area, Entry Signs, Association Fencing and other terms necessary to, address and describe the new applicable areas of land within the real propert pe évidenced by a Recorded written document. This Declaration shall not burden

Pages 33–34

ation Fencing and other terms necessary to, address and describe the new applicable areas of land within the real propert pe évidenced by a Recorded written document. This Declaration shall not burden f the Annexable Property until such time, if any, as the Annexable Property is d_intO the Declaration as herein provided and evidenced by a Recorded written instrument.

10.4 No Duty to Annex. Nothing herein contained shall establish any duty or obligation on the part of the Declarant or any Member to annex any portion of the Annexable Property, and no owner of any property excluded from the Association shall have any right to have such property annexed thereto.

33 012527.000000\4825-7787-3706.v1 Page 34 of 42 10.5 Withdrawal of Property. Declarant may withdraw real property without a Dwelling thereon from the definition of the Property and from the coverage of this Declaration, provided that (i) the withdrawal is not unequivocally contrary to the overall, uniform scheme of development of the Property; (ii) the owner of real property to be withdrawn must consent. Such withdrawal shall not require the consent of any other person, Member or Owner, except a 67% or greater vote approving such action is required if the real property to be withdrawn is a Common Area.

ARTICLE XI MISCELLANEOUS 11.1. Declaration Term - Perpetual. Unless the Members holding (all classes counted together) approve the termination of this Declaration, the unless Recorded.

11.2 Amendments to Declaration. This Declar¢ consent by Members holding 67% of the votes (all clas Declarant, at its sole discretion and without a vote or amend or repeal this Declaration: (i) at any time p (ii) as necessary to bring any provision into co statutes, rule, regulation or judicial determi

Pages 34–35

larant, at its sole discretion and without a vote or amend or repeal this Declaration: (i) at any time p (ii) as necessary to bring any provision into co statutes, rule, regulation or judicial determi requirements of the VA, HUD (Federal fpusi 8 other applicable governmental agency or see y tadytgage market entity; or (iv) as necessary to clarify or to correct technical, typo 1 1¥/immediately above must not have a material adverse effect upon any right Any amendment to this Declaration shall be effective upon Recording.

at proceeding at law or in equity, all restrictions, conditions, Ytharges imposed now or in the future by the provisions of this Association or any Owner to enforce any covenant or restriction of s; Cumulative. In the event any Lot does not comply with the terms r fails to comply with the terms herein, the Association and/or any Owner ithout limitation, enforcement of any lien, damages, injunction, specific performance, judgment for payment of money and collection thereof, or for any combination of remedies, or for any other relief. No remedies herein provided or available at law or in equity will be deemed mutually exclusive of any other such remedy, but instead shall be cumulative.

11.5 Notice to Association of Sale or Transfer. Any Owner (other than Declarant) desiring to sell or otherwise transfer title to his or her Lot shall give the Board of Directors 34 012527.000000\4825-7787-3706.v1 Page 35 of 42 written notice of the name and address of the purchaser or transferee within 30 days after the date of such transfer of title and such other information as the Board of Directors may reasonably require. The Association may charge a transfer fee upon the conveyance of title to a Lot for

fter the date of such transfer of title and such other information as the Board of Directors may reasonably require. The Association may charge a transfer fee upon the conveyance of title to a Lot for purposes of covering the reasonable administrative costs to change the records.

11.6 Limitation on Interest. All agreements between any Owner and the Association and/or Declarant are expressly limited so that the amount of interest charged, collected or received on account of such agreement shall never exceed the maximum amount permitted by applicable law. If, under any circumstances, fulfillment of any provision of this Declayat Association and/or Declarant should be deemed to be excessive interest, then thg excess shall be applied to reduce the unpaid principal and not to the payment notices, demands, bills, statements and other comm writing and shall be given personally or by mail.

have been duly given three days after deposit, uxs earlier date. Owners shall maintain one eidling g by the Association for mailing of notices, stafets a current mailing address for a Lot with Ae deemed to be such Owner’s mauling A entity, then notice to one co-owhefA ation, then the address of that Owner’s Lot is 4 Lot is owned by more than one person or the meeting. Written w Members shall be deemed yerability. Invalidation of any one of these covenants, conditions, easements gment or court order will in no manner affect any other provisions, which Il'force and effect. Any invalidated provision shall be automatically reformed in 11.11 Rights and Obligations Run With Land. The provisions of this Declaration are covenants running with the land and will inure to the benefit of, and be binding upon, each and

Page 36

matically reformed in 11.11 Rights and Obligations Run With Land. The provisions of this Declaration are covenants running with the land and will inure to the benefit of, and be binding upon, each and all of the Owners and their respective heirs, representatives, successors, assigns, purchasers, grantees and mortgagees. No Lot is exempt from the terms set forth herein. By the recording or the acceptance of a deed conveying a Lot or any ownership interest in the Lot whatsoever, the person to whom such Lot or interest is conveyed will be deemed to accept and agree to be bound 35 012527.000000\4825-7787-3706.v1 Page 36 of 42 by and subject to all of the provisions of this Declaration, whether or not mention thereof is made in said deed.

11.12 Assignment of Declarant's Rights. Declarant may assign, in whole or in part, its rights as Declarant by executing a document assigning such rights. There may be more than one Declarant, if Declarant makes a partial assignment of the Declarant status.

11.13 Disclaimer Regarding Security. Neither the Association nor Declarant shall in any way be considered insurers or guarantors of security within the Property, nor sha them be held liable for any loss or damage by reason of failure to provide adequate secu: ineffectiveness of security measures undertaken. No representation or warranty is made fire protection system, burglar alarm system or other security system can not be circumvented, nor that any such systems or security measures undertaker prevent loss or provide the detection or protection for which the system is Each Owner acknowledges, understands and covenants to inform /fs-tenadnts, Invitees and licensees that the Association, its Board of Directors and comamittde e by the electric utility provider. The operational co!

Pages 36–38

knowledges, understands and covenants to inform /fs-tenadnts, Invitees and licensees that the Association, its Board of Directors and comamittde e by the electric utility provider. The operational co!

paid by the City. If, at any time in the future, the Ci community are allocated to the Declara obligations to the Association, and the Asso all obligations related to maintaining and Y said street lights, and the Association shall eS. If, at any time in the future, the City adopts ereby the costs for maintaining and/or operating Allocated to the Association, the Association shall Expenses.

Court Costs. If litigation is instituted to enforce any g party shall be entitled to all attorneys’ fees and court costs eadings. The headings contained in this Declaration are for reference purposes not in any way affect the meaning or interpretation of this Declaration.

11.18 Conflicts. In the event of conflict between this Declaration and any Bylaws, tules, regulations or Certificate of Formation of the Association, this Declaration will control.

11.19 Exhibits. All exhibits referenced in this Declaration as attached hereto are hereby incorporated by reference.

36 012527.000000\4825-7787-3706.v1 Page 37 of 42 IN WITNESS WHEREOPF, the Declarant has caused this instrument to be executed on this day of , 2016.

DECLARANT: CW-PEMBERLEY, LLC, a Texas limited liability company By: CW-LT Management, L.L.C., a Texas limited liability company, its manage STATE OF A (Eng § § COUNTY OF M aicong § , 2016, by John Cork, the limited liability company, on behalf of Pemberley, LLC, a Texas limited liability co otary Public in for the State of ron 37 012527.000000\4825-7787-3706.v1 Page 38 of 42 EXHIBIT “A" Pemberlay Phase 1 - Legal Description

mpany, on behalf of Pemberley, LLC, a Texas limited liability co otary Public in for the State of ron 37 012527.000000\4825-7787-3706.v1 Page 38 of 42 EXHIBIT “A" Pemberlay Phase 1 - Legal Description Being 34.804 acres of land located in the A. N. CURRY SURVEY, ABSTRACT NO 332, City of Mansfield, Tarrant County, Taxae, being a portion of those tracts as recorded in Document No.

D214485769 & Document No. 0214185770, Deed Records, Tamant County, Texas and being portion of Lot 1, Block 1 of the Highlands by the Lake, an addition to the City of Mansfield, according to the plat thereof recorded in Cabinet A, Slide 4592 P.R.T.C.T., and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod found for the southwest comer of said Lot 1, Slock 1, said point being the southwest corner of said CVW-Pambarley tract, said point also being in the east fine of Meadow & Phase 4, as recorded in Cabinet A, Slide 11085 P.R.T.C.T., said corner also being the northweatcame recorded In Cabinet A, Slide 10671, P.R.T.C.T.; THENCE North 28 degrees 38 minutes 24 seconds West, along the g6 said Meadow Glen - Phase 2 and the weal tine of said CW-Pemberté 4/2-inch iron rod eet for a comer; THENCE North 28 degrees 39 minutes 39 seconds West, a sakt Meadow Glen - Phase 2 and the west line of sald QAAR: a 9f8-inch iron rod found for a corner, THENCE North 59 degrees 49 minutes 23 seconds tract, seme being the south line of Grand Meadow/Be feet fo 4 1/2-iron rod set for a corer; parting the south line of saki Grand Meadow THENCE South 28 degrees 39 minutes 38 ses act, a distance of 607.15 feet to a 1/2-inch Boulevard, along the nostheast line of saie-Gt iron rox set for a comer, South 30 degfees 28 minuteS41 seconds East, a distance of 183.60 fect toa 1#2-inch = iron rod

Page 39

ance of 607.15 feet to a 1/2-inch Boulevard, along the nostheast line of saie-Gt iron rox set for a comer, South 30 degfees 28 minuteS41 seconds East, a distance of 183.60 fect toa 1#2-inch = iron rod nutes 09 seconds East, a distance of 10.00 feet to a 1/2-inch iron rad set gre6s 28 minytas 61 seconds East, a distance of 440.00 feet toa i/2ineh = tron rod 59 degreae 31 minutes 09 seconds West, a distance of 22.21 feetto a 1/2-Inch = tron rad South 30 dagrees 28 minutes 51 seconds East, a distance of 288.00 featto a t/2-inch iron fod set for a comer, 38 012527.000000\4825-7787-3706.v1 Page 39 of 42 North 59 degrees 31 minutes 09 seconds East, # distance of 425.95 feet to a V2inch — iron rod set fora comer, Gavth 30 degrees 28 minutes $1 seconds East, distance of 170.00 feet toa 1/2-Inch iron rod set for a corner, South 59 degrees 31 minutes 09 seconds West, a distance of 17.84 feet toa 4/2-inch iron fod set for a corner, South 30 degrees 28 minulas 61 seconds East, a distance of 362.00 feet fo a 1/2-inch iron rod set for a comer, suid camer being in the southeast line of said CW-Pemberiey tract, same being the northwast line of said Bower Ranch - Phase 1; THENCE South 59 degrees 31 minutes 09 seconds West, along the southeast fine of $4 Pemberloy tract, seme being the northwest line of said Bower Ranch - Phase 1, 2 distance fest to the POINT OF BEGINNING, containing 1,816,069 square feet or 34.804 acres of fagd, less.

SAVE AND EXCEPT TRACT ©) BEING 8 0.459 acre tract of land situated In the A. N. CURRY SUR ABSTRAG 332, Clty of Mensfield, Tartant County, Texas and being portion of Lot 1, Block 1'p addition to the City of Manafleid, acoording to the plat thereof fe } P.R.T.C.T., and being that same tract of land described in a’degd to Barmeli tae" ing, LP recorded in

Pages 39–40

portion of Lot 1, Block 1'p addition to the City of Manafleid, acoording to the plat thereof fe } P.R.T.C.T., and being that same tract of land described in a’degd to Barmeli tae" ing, LP recorded in instcument No. 0209084687, Deed Records, Tarrant Coun as, Deed Records, Tarrant County.

Texas and being more particularly dascribad a8 follows: COMMENCING a 1/2 inch iron rod found for the 4 gafti Lot 1, Block 7, same being the northwest comer of a of Lot 2, Block 1, of said Highty A Aeke Addition, and being In the east line of Meadow Glen, Phase It, an addition in the City of Marshes, 2gc0 ding to the plat thereof in Cabinet A, Slide 11084, Plat Records Tarrant Goun ei THENCE North 69°31'09" East, ef said Lot 1, and Lot 2, Block 1, a distance of 30.24 feet, to a point; THENCE crossing said Lot G0 feet to a 4/2 inch iron rod set forthe savihwest North 28°38'S0" Waat, adistance ct, ara’the POINT OF BEGINNING; North 28°36'807 West. 4 distance of 100.05 feat to a 1/2 Inch iron rod set for the northwest eg g g tract; Bast along the north line of sald Bamett Gathering tract, a distance of achbiron rod sat for the northeast comer of said Barnett Gathering tract: 29°46'39" East along the east line of said Bamett Gathering tract, a distance of 100.05 feet ich iron rod set for the southeast corner of said Barnett Gathering Wact, 59°31'11" Waat, along the south line of ssid Bamett Gathering tract, a distance of 200.00 fet to the POINT OF BEGINNING and containing 20,010 square feet or 0.489 acres of land, more or lass.

012527,000000\4825-7787-3706.v1 °° Page 40 of 42 LIENHOLDER'S SUBORDINATION THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF ELLIS § WHEREAS, FIRST CONTINENTAL INVESTMENT CO., LTD., a Texas limited partnership is

Pages 40–41

° Page 40 of 42 LIENHOLDER'S SUBORDINATION THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF ELLIS § WHEREAS, FIRST CONTINENTAL INVESTMENT CO., LTD., a Texas limited partnership is the present owner and holder of liens against the property described in the foregoing Declaration, said liens being recorded in the Official Public Records of Real Property of Ellis County, Texas, and is the holder of a promissory note secured by said liens, and desires to subordinate said liens to the Declaratia NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS; that for and in cgn paid by Declarants to the undersigned, the receipt and sufficiency of which is hereby ac confessed, the said licnholder as the present owner and holder of the note and the lien; p The said lienholder does hereby warrants and represents that itA$ the p the note and the liens given to secure the payment of the same, and i terefid holder of the note and the liens.

STMENT CO., LTD., aftnership . Bonner, President THE STATE OF TEXAS COUNTY OF HARRIS nowledged before me on the as day of August , 2016 by sT CONTINENTAL INVESTMENT CO., L'RD., a Texas limited THE STATE OF TEXAS Comm. Expires 05-1 4-2017 Notary 1D 446606-3 40 012527.000000\4825-7787-3706.v1 Page 41 of 42 LIENHOLDER'S SUBORDINATION THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF ELLIS § WHEREAS, the undersigned is the present owner and holder of liens against the property described in the foregoing Declaration, said liens being recorded in the Official Public Records of Real Property of Ellis County, Texas, and desires to subordinate said liens to the Declaration.

NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS; that for and in gonsi confessed, the said lienholder as the present owner and holder of the note and the lien

Pages 41–42

subordinate said liens to the Declaration.

NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS; that for and in gonsi confessed, the said lienholder as the present owner and holder of the note and the lien payment of the same, does hereby fully subordinate its liens to the foregoing Declg the note and the liens given to secure the payment of the same, ang note and the liens, THE STATE OF ,; President of TREZ CAPITAL ay of 8 LLC, a Delaware acting a s Administrative Agent for TREZ CAPITAL (2014) CORPORATION, NOTARY PUBLIC IN AND FOR SAD ANGELA WILLIAMS THESTATE OF AS Notary Public, State of Texas “ “ef My Commission Expires aA February 07, 2037 4l 012527.000000\4825-7787-3706.v1 Page 42 of 42 LIENHOLDER'S SUBORDINATION THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF ELLIS § WHEREAS, FIRST TEXAS HOMES, INC., a Texas corporation is the present owner and holder of liens against the property described in the foregoing Declaration, said liens being recorded ig the Official Public Records of Real Property of Ellis County, Texas, and is the holder of a promisso secured by said liens, and desires to subordinate said liens to the Declaration.

The said lienholder does hereby warrants and represents tha the note and the liens given to secure the payment of the same, and note and the liens.

THE STATE OF TEXAS K —th nowledged before me on the > ' day of Au, us f , 2016 by DV. Prtsident of FIRST TEXAS HOMES, INC., a Texas corporation, on on Wl Nuy, WM OSARIO AM x 20 2) Sox, MEY arenes DiSpen p tC dent se VURE A" NOTARY PUBLIC IN AND FOR Loe THE STATE OF TEXAS “Ny, ’ } 42 012527.000000\4825-7787-3706.v1