Document

2022 - 2022000140592 09/16/2022 04:51 PM Page 1 of 88 AFTER RECORDING RETURN TO: JUDD A. AUSTIN, JR.

HENRY ODDO AUSTIN & FLETCHER, P.C.

1700 PACIFIC AVENUE SUITE 2700 DALLAS, TEXAS 75201 AMENDED AND RESTATED DECLARATION OF COVENANT CONDITIONS Unofficial Declarant: Grand Lake Forest Community, LLC, a Texas limited liability company.

This Amended and Restated Declaration of Covenants, Conditions and Restrictions may be used only in connection with the residential community known as Lake Forest in the City of McKinney, Collin County, Texas and the operation of Lake Forest Owners Association, Inc.

2022 - 2022000140592 09/16/2022 04:51 PM Page 2 of 88 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LAKE FOREST TABLE OF CONTENTS ARTICLE 1 DEFINITIONS.

ARTICLE 2 GENERAL AND USE RESTRICTIONS............

General..

Conceptual Plans..

Single-Family Residential Use Subdividing..

2.01 2.02 2.03 2.04 Rentals 2.05 2.06 2.07 Insurance Rates..

2.08 Mining and Drilling 2.09 Noise..

2.10 Hazardous Activities.

1 .6 6 7 official Clotheslines; Window Air Conditioners 2.11 Animals Household Pets....

Rubbish and Debris Trash Containers Antennae.

Location of Permitted Antennae Signs..

Flags Approval Requirements Flags - Installation and Display Temporary Structures....

2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 Garages.

2.23 2.24 On Street Parking 2.25 Unsightly Articles; Vehicles Basketball Goals; Permanent and Portable Holiday Decorations...

9 10 10 10 11 11 12 12 13 14 14 14 14 14 15 Limited or Restricted Driveway Parking Compliance with Restrictions.

Liability of Owners for Damage to Common Area..

15 15 16 Water Quality Facilities, Drainage Facilities and Drainage Ponds.

16 Party Walls.

16 Injury to Person or Property View Impairment.

estrictions.

Liability of Owners for Damage to Common Area..

15 15 16 Water Quality Facilities, Drainage Facilities and Drainage Ponds.

16 Party Walls.

16 Injury to Person or Property View Impairment.

Safety and Security.

17 17 17 No Warranty of Enforceability.

18 Solar Energy Device.....

18 2.35 Rainwater Harvesting Systems.

19 2.36 Xeriscaping..

.20 2.37 Dirt Disclosure....

.22 2.38 Solid Waste Composting of Vegetation...

22 ARTICLE 3 CONSTRUCTION RESTRICTIONS…………………… 3.01 Approval for Construction..

.23 22 23 2022 - 2022000140592 09/16/2022 04:51 PM Page 3 of 88 6.01 6.02 Maintenance Fund.

6.03 Monthly Assessments.

6.04 Special Assessments.

6.05 Individual Assessments.

6.06 Working Capital Assessment.

4.20 Wood 4.21 Stone...

4.22 4.23 Chemicals..

Marketing ARTICLE 5 LAKE FOREST OWNERS ASSOCIATION, INC.

Organization.

Membership↓ Governance...

5.01 5.02 5.03 5.04 Voting Rights.

5.05 owers.

5.06 5.07 5.08 Acceptance of Common Area Indemnification Insurance 5.09 Bulk Rate Contracts 5.10 Community Systems.

5.11 Declarant's Right to Contribute to Revenues of the Association 5.12 Protection of Declarant's Interests..

5.13 Administration of Common Area.

5.14 City's Right to Maintain Common Areas.

ARTICLE 6 COVENANT FOR ASSESSMENTS Assessments 4.01 4.02 4.03 Fire Sprinkler Disclosure.

4.04 4.05 4.06 4.07 4.08 4.09 Construction Activities.

3.02 3.03 Drainage..

3.04 Compliance with Setbacks ARTICLE 4 DISCLOSURES.

Service Contracts Adjacent Thoroughfares Adjacent Use...

Outside Conditions Concrete...

Construction Activities.

Moisture....

Mold and/or Mildew .25 23 .23 .23 .23 .23 .24 .24 24 24 .25 4.10 Encroachments..

25 4.11 Budgets...

4.12 Light and Views 4.13 4.14 4.15 4.16 4.17 4.18 Schools Suburban Environment..

Water Runoff..

Photography of the Property.

.23 .23 .23 .23 .24 .24 24 24 .25 4.10 Encroachments..

25 4.11 Budgets...

4.12 Light and Views 4.13 4.14 4.15 4.16 4.17 4.18 Schools Suburban Environment..

Water Runoff..

Photography of the Property.

Changes to Street Names and Addresses.

Plans and Land Use .25 .26 .26 .26 26 .26 .26 4.19 Location of Utilities.

official 26 26 .27 .27 .27 .27 .28 .28 .28 .29 .29 30 33 33 33 33 34 34 35 35 .35 35 35 36 .36 .37 37 37 2022 - 2022000140592 09/16/2022 04:51 PM Page 4 of 88 Exemptions from Assessments.

Owner's Personal Obligation; Interest Assessment Lien and Foreclosure 6.07 6.08 Late Charges.

6.09 6.10 6.11 Exempt Property..

6.12 Fines and Damages Assessment.

ARTICLE 7 MAINTENANCE AND REPAIR OBLIGATIONS Overview Association Maintains...

Area of Common Responsibility-Applicable to Townhomes Only.

7.01 7.02 7.03 7.04 7.05 7.06 Yard Maintenance 7.07 Inspection Obligations.

Owner Responsibility 38 .38 38 38 .40 .40 .41 41 41 .42 Disputes....

ARTICLE 8 INSURANCE.....

8.01 8.02 8.03 8.04 8.05 8.06 Type of Insurance Townhome Insurance Detached Single-Family Home Insurance Additional Insurance.

Association Does Not Insure 45 .45 .45 .46 .46 .46 .46 .46 official Owner's Liability For Insurance Deductible ARTICLE 9 ARCHITECTURAL CONTROL COMMITTEE.

9.01 9.02 Construction of Improvements Architectural Control Committee ARTICLE 10 MORTGAGE PROVISIONS.

10.01 10.02 10.03 Notice of Action......

Examination of Books...

Taxes, Assessments and Charges.

ARTICLE 11 GENERAL PROVISIONS.....

11.01 11.02 11.03 11.04 Term Eminent Domain.

Amendment Enforcement 11.05 No Waiver..

11.06 Recovery of Costs.

N.07 Higher Authority..

11.08 Severability.

11.09 Conflicts.

11.10 Gender 11.11 Notices.

11:12 Acceptance by Owners.

11.13 No Partition ARTICLE 12 EASEMENTS...

12.01 Owner's Easement of Enjoyment.

ts.

N.07 Higher Authority..

11.08 Severability.

11.09 Conflicts.

11.10 Gender 11.11 Notices.

11:12 Acceptance by Owners.

11.13 No Partition ARTICLE 12 EASEMENTS...

12.01 Owner's Easement of Enjoyment.

12.02 Owner's Maintenance Easement.

12.03 Owner's Ingress/Egress Easement 12.04 Owner's Encroachment Easement.

12.05 Easement Of Cooperative Support.

.47 47 .47 .49 49 50 50 .50 .50 50 50 51 51 51 52 52 52 52 52 52 52 53 53 53 54 54 54 iii 2022 - 2022000140592 09/16/2022 04:51 PM Page 5 of 88 12.06 Association's Access, Maintenance and Landscape Easement 54 12.07 3' Maintenance Easement for Right to Enter Lot Adjacent to the Zero Side of a Lot.

55 12.08 Fence and Use Easement for Right to Enter 2' Shared Area on Zero Side of Lot .55 57 57 57 ARTICLE 13 DEVELOPMENT EASEMENTS..

13.01 Right of Ingress and Egress 13.02 Community Systems Easement..

13.03 Reserved Easements 13.04 Improvements, Roadway and Utility Easements.

13.05 Subdivision Entry and Fencing Easement.

13.06 Landscape and Monument Sign Easement..

13.07 Easement to Inspect and Right To Correct 13.08 Drainage and Detention Easement.

13.09 Declarant as Attorney in Fact.

ARTICLE 14 DEVELOPMENT RIGHTS…………………………..

.....

14.01 Development by Declarant.

14.02 Special Declarant Rights 14.03 Addition of Land..

57 58 228888 SSSSSSSSS 59 59 .60 Unofficial .60 .60 60 14.04 Assignment of Declarant's Rights 61 ARTICLE 15 DISPUTE RESOLUTION .61 15.01 Agreement to Encourage Resolution of Disputes Without Litigation.

61 15.02 Mandatory Procedures 62 15.03 Claim by the Association Common Areas.

62 15.04 Claim by Owners-Improvements on Lots.

15.05 Notice 15.06 Negotiation......

15.07 Mediation.

15.08 Termination of Mediation 15.09 Binding Arbitration-Claims.

15.10 Allocation of Costs.

General Provisions.

im by Owners-Improvements on Lots.

15.05 Notice 15.06 Negotiation......

15.07 Mediation.

15.08 Termination of Mediation 15.09 Binding Arbitration-Claims.

15.10 Allocation of Costs.

General Provisions.

15.12 Period of Limitation..

15.16 Funding Arbitration and Litigation.

.63 64 64 65 65 65 67 .67 .67 .67 iv 2022 - 2022000140592 09/16/2022 04:51 PM Page 6 of 88 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LAKE FOREST This Amended and Restated Declaration of Covenants, Conditions and Restrictions for Lake Forest (the “Declaration”) is made by GRAND LAKE FOREST COMMUNITY, LLC, a Texas limited liability company (the "Declarant”), and is as follows: A.

RECITALS: Declarant made the Declaration of Covenants, Conditions and Restrictions for Lake Forest, recorded as Instrument No. 20180108000030490 in the Official Public Records of Collin County, Texas, and desires to amend, restate, and replace dedicatory instrument with this Declaration.

This Declaration is filed with respect to Lake Forest, a subdivision in Collin County, Texas, according to the plat Recorded the Plat or Map Records of Collin County, Texas (the "Property").

Declarant is the owner of the Property.

nofficial B. Declarant desires to create and carry out a uniform plan for the development, improvement, and sale of the Property.

C. By the filing of this Declaration, Declarant serves notice that the Property will be subjected to the terms and provisions of this Declaration.

NOW, THEREFORE, it is hereby declared: (i) that the Property (or any portion thereof) will be held sold, conveyed, and occupied subject to the following covenants, conditions and restrictions which will run with such portions of the Property and will be binding upon all parties

hereof) will be held sold, conveyed, and occupied subject to the following covenants, conditions and restrictions which will run with such portions of the Property and will be binding upon all parties having right, title, or interest in or to such portions of the Property or any part thereof, their heirs, successors and assigns and will inure to the benefit of each owner thereof; and (ii) that each contract or deed conveying the Property (or any portion thereof) will conclusively be held to have been executed delivered and accepted subject to the following covenants, conditions and restrictions, regardless of whether or not the same are set out in full or by reference in said contract or deed.

This Declaration uses notes (text set apart in boxes) to illustrate concepts and assist the reader. If there is a conflict between any note and the text of the Declaration, the text will control.

ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used in this Declaration will have the meanings hereinafter specified: AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 1 2022 - 2022000140592 09/16/2022 04:51 PM Page 7 of 88 “Applicable Law" means the statutes and public laws and ordinances in effect at the time a provision of the Restrictions is applied, and pertaining to the subject matter of the Restriction provision, including but not limited to, all ordinances and any other applicable building codes, zoning restrictions and permits or other applicable regulations. Statutes and ordinances specifically referenced in the Restrictions are "Applicable Law" on the date of the Restrictions,

ilding codes, zoning restrictions and permits or other applicable regulations. Statutes and ordinances specifically referenced in the Restrictions are "Applicable Law" on the date of the Restrictions, and are not intended to apply to the Property if they cease to be applicable by operation of law, or if they are replaced or superseded by one or more other statutes or ordinances.

"Architectural Control Committee” or "ACC" means the committee created pursuant to this Declaration to review and approve or deny plans for the construction, placement, modification, alteration or remodeling of any Improvements on a Lot, Structure, or Dwelling. As provided in Article 9 below, the Declarant acts as the ACC and the ACC is not a committee of the Association until the Declarant has assigned its right to appoint and remove all ACC members to the Association in a Recorded written instrument or the Development Period has expired.

“Area of Common Responsibility" means those portions of a Townhome that are designated, from time to time, by this Declaration or the Association to be maintained, repaired, and replaced by the Association, as a Townhome Common Expense, as reflected in the Designation of Area of Common Responsibility and Maintenance Chart attached to this Declaration as Exhibit "B".

fficial “Assessment” or “Assessments" means assessments imposed by the Association under this Declaration.

“Association” means LAKE FOREST OWNERS ASSOCIATION, INC., a Texas non-profit corporation, which has been created by Declarant to exercise the authority and assume the powers specified in Article 5 and elsewhere in this Declaration. The failure of the Association to maintain its corporate charter, from time to time does not affect the existence or legitimacy of

the powers specified in Article 5 and elsewhere in this Declaration. The failure of the Association to maintain its corporate charter, from time to time does not affect the existence or legitimacy of the Association, which derives its authority from this Declaration, the Certificate, the Bylaws, and Applicable Law.

"Board" means the Board of Directors of the Association.

"Bulk Rate Contract" or "Bulk Rate Contracts" means one or more contracts which are entered into by the Association for the provision of utility services or other services of any kind or nature to the Lots. The services provided under Bulk Rate Contracts may include, without limitation, cable television services, telecommunications services, internet access services, "broadband" services, security services, trash pick-up services, propane service, natural gas service, lawn maintenance services, wastewater services, and any other services of any kind or nature which are considered by the Board to be beneficial to all or a portion of the Property or the Common Area. Each Bulk Rate Contract must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period.

"Bylaws” means the Bylaws of the Association as adopted and as amended from time to time by a Majority of the Board.

"Certificate" means the Certificate of Formation of the Association, filed in the Office of the Secretary of State of Texas, as the same may be amended from time to time.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 2 2022 - 2022000140592 09/16/2022 04:51 PM Page 8 of 88 "City of McKinney” means the City of McKinney, Collin County, Texas.

“Common Area" means any property and facilities that the Association owns or in which

022000140592 09/16/2022 04:51 PM Page 8 of 88 "City of McKinney” means the City of McKinney, Collin County, Texas.

“Common Area" means any property and facilities that the Association owns or in which it otherwise holds rights or obligations, including any property or facilities held by the Declarant for the benefit of the Association or its Members. Common Area also includes any property that the Association holds under a lease, license, or any easement in favor of the Association. Some Common Area will be solely for the common use and enjoyment of the Owners, Residents, and their guests, tenants and invitees, while other portions of the Common Area may be for the use and enjoyment of the Owners, Residents, their guests, tenants and invitees, and members of the public.

By way of example, and not by way of limitation, Common Area may include any entry features, poor or amenity center, signage, landscape easements, recreational facilities, trails, playground equipment, and/or other similar items.

al "Common Expenses” means all costs and expenses, reserves or financial liabilities of the Association that are incurred pursuant to the provisions of this Declaration, the Bylaws or resolution duly adopted by the Board or the Owners for both the Detached Single-Family Homes and the Townhomes, but excluding the Townhome Common Expenses.

“Community Systems” means any and all cable [television telecommunications, alarm/monitoring, internet, telephone or other lines, conduits, wires, amplifiers, towers, antennae, satellite dishes, equipment, materials and installations and fixtures (including those based on, containing and serving future technological advances not now known), if installed by Declarant

ntennae, satellite dishes, equipment, materials and installations and fixtures (including those based on, containing and serving future technological advances not now known), if installed by Declarant pursuant to any grant of easement or authority by Declarant or the Association within the Property.

"Declarant" means GRAND LAKE FOREST COMMUNITY, LLC, a Texas limited liability company, its successors or assigns; provided that any assignment(s) of the rights of GRAND LAKE FOREST COMMUNITY, LLC a Texas limited liability company, as Declarant, must be expressly set forth in writing and Recorded Declarant enjoys special rights and privileges to help protect its investment in the Property. These special rights are described in this Declaration. Many of these rights do not terminate until either Declarant: (i) has conveyed all Lots which may be created out of the Property; or (ii) voluntarily terminates these rights by a Recorded written instrument.

"Design Guidelines" means the standards for design, construction, landscaping, and exterior items proposed to be placed on any Lot, adopted pursuant to Section 9.02(c), as the same may be amended from time to time. The Design Guidelines may consist of multiple written design guidelines applying to specific portions of the Property. At Declarant's option, Declarant may adopt or amend from time to time the Design Guidelines for the Property or any portion thereof.

Notwithstanding anything in this Declaration to the contrary, Declarant will have no obligation to establish Design Guidelines for the Property or any portion thereof. The Design Guidelines are attached hereto as Exhibit “C”.

"Detached Single-Family Homes” means the entire Lot and enclosed area of any detached

sign Guidelines for the Property or any portion thereof. The Design Guidelines are attached hereto as Exhibit “C”.

"Detached Single-Family Homes” means the entire Lot and enclosed area of any detached single-family structure constructed upon Phase 1-SF Tract (approximately 22.775 acres) and Phase 2-SF Tract (approximately 10.285 acres) and as further depicted on Exhibit A - Tract Exhibit.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 3 2022 - 2022000140592 09/16/2022 04:51 PM Page 9 of 88 Each Detached Single-Family Home includes all improvements, fixtures, and equipment located on the Lot.

"Development Period" means the period of time beginning on the date when this Declaration has been Recorded and ending at such time as Declarant no longer owns any portion of the Property, unless earlier terminated by Declarant. Declarant may terminate the Development Period by an instrument executed by Declarant and Recorded. The Development Period is the period in which Declarant reserves the right to facilitate the development, construction, and marketing of the Property, and the right to direct the size, shape and composition of the Property.

"Dwelling" means the single family residence located on a Lot, together with any garage incorporated therein. Dwelling includes both Detached Single-Family Homes and Townhomes.

“Homebuilder” means an Owner (other than the Declarant) who acquires a Lot for the construction of a single family residence for resale to a third party.

“Improvement” means all physical enhancements and alterations to the Property, including but not limited to grading, clearing, removal of trees, and site work, and every structure

le to a third party.

“Improvement” means all physical enhancements and alterations to the Property, including but not limited to grading, clearing, removal of trees, and site work, and every structure and all appurtenances of every type and kind, whether temporary or permanent in nature, including, but not limited to, buildings, outbuildings, storage sheds, patios, tennis courts, sport courts, recreational facilities, swimming pools, putting greens, garages, driveways, parking areas and/or facilities, storage buildings, sidewalks, fences, gates, screening walls, retaining walls, stairs, patios, decks, walkways, landscaping, alteration of drainage flow, mailboxes, poles, signs, antennae, exterior air conditioning equipment of fixtures, exterior lighting fixtures, water softener fixtures or equipment, and poles, pumps well tanks, reservoirs, pipes, lines, meters, antennae, towers and other facilities used in connection with water, sewer, gas, electric, telephone, regular or cable television, or other utilities.

Unofficial "Lot” means any portion of the Property designated by Declarant or as shown as a subdivided Lot on a Plat other than Common Area.

"Majority" means more than half.

"Manager" has the meaning set forth in Section 5.05(h).

"Members" means every person or entity that holds membership privileges in the Association.

of "Mortgages” means any mortgage(s) or deed(s) of trust securing indebtedness and covering any Lot.

"Mortgagee” or “Mortgagees” means the holder(s) of any Mortgage(s).

"Owner" means the person(s), entity or entities, including Declarant, holding all or a portion of the fee simple interest in any Lot, but does not include the Mortgagee under a Mortgage

y Mortgage(s).

"Owner" means the person(s), entity or entities, including Declarant, holding all or a portion of the fee simple interest in any Lot, but does not include the Mortgagee under a Mortgage prior to its acquisition of fee simple interest in such Lot pursuant to foreclosure of the lien of its Mortgage.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 4 2022 - 2022000140592 09/16/2022 04:51 PM Page 10 of 88 "Plat" means a Recorded subdivision plat of the Property and any amendments thereto.

"Property" means all the land subject to this Declaration and all improvements, easements, rights, and appurtenances to the land. The name of the Property is Lake Forest, a subdivision in Collin County, Texas, according to the plat Recorded in the Plat or Map Records of Collin County, Texas, subject to such additions thereto and deletions therefrom as may be made pursuant to Section 14.03 of this Declaration. The Property includes the land described in Exhibit A, as it may be amended or supplemented from time to time.

“Record, Recordation, Recorded, and Recording" means recorded or to be recorded in the Official Public Records of Collin County, Texas.

the Lot.

"Resident" means an occupant or tenant of a Lot, regardless of whether the person owns "Restrictions" means the restrictions, covenants, and conditions contained in this Declaration, the Design Guidelines, Bylaws, Rules and Regulations, or in any other policies promulgated by the Board pursuant to this Declaration, as adopted and amended from time to time.

See, Table 1 for a summary of the Restrictions.

“Rules and Regulations” means any instrument, however denominated, which is adopted

suant to this Declaration, as adopted and amended from time to time.

See, Table 1 for a summary of the Restrictions.

“Rules and Regulations” means any instrument, however denominated, which is adopted by the Board for the regulation and management of the Property or the Common Area, including any amendments to those instruments.

Unofficial "Solar Energy Device" means a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar-generated energy. The term includes a mechanical or chemical device that has the ability to store solar-generated energy for use in heating or cooling or in the production of power.

“Structure” means a building containing two (2) or more Dwellings that: (i) is located on two (2) or more adjacent Lots; and (ii) has one (1) or more party walls separating the Dwellings comprising such building.

"Townhome" means the entire enclosed area of any single-family residential structure constructed upon Phase 1TH Tract (approximately 5.974 acres), as further depicted on Exhibit A Tract Exhibit. Each Townhome includes the space and improvements contained within the exterior walls of any such single-family residential structure; including, without limitation, all windows, window screens and frames; exterior doors, door frames and hardware; garage space; private passageways, if any. Each Townhome also includes all improvements, fixtures and equipment serving the Townhome exclusively whether located inside or outside the Townhome or whether attached to or contiguous with the Townhome, such as, for example, the following: air conditioning or heating units; utility meters; fuse boxes; wiring; pipes; conduits; lighting fixtures;

or whether attached to or contiguous with the Townhome, such as, for example, the following: air conditioning or heating units; utility meters; fuse boxes; wiring; pipes; conduits; lighting fixtures; receptacles for telephone or television service; and any skylights. On party walls (being the walls dividing two Townhomes) the Townhome's lateral boundary shall constitute the imaginary plane defining the midpoint of such party wall.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 5 2022 - 2022000140592 09/16/2022 04:51 PM Page 11 of 88 "Townhome Common Expense” means costs and expenses associated exclusively with the Areas of Common Responsibility, as determined by the Board, including expenses for insurance and maintenance incurred in connection with the Townhomes pursuant to the provisions of this Declaration, the Bylaws or a resolution duly adopted by the Board.

TABLE 1: RESTRICTIONS Declaration (Recorded) Certificate of Formation (Recorded) Bylaws (Recorded) Design Guidelines (if adopted, Recorded) Rules and Regulations (if adopted, Recorded) Board Resolutions (adopted by the Board of the Association) Creates obligations that are binding upon the Association and all present and future owners of Property.

Establishes the Association as corporation.

a Texas nonprofi Governs the Association's internal affairs, such as elections, meetings, etc.

Governs the design and architectural standards for the construction of Improvements and modifications thereto. The Declarant shall have no obligation to adopt the Design Guidelines Regulates the use of property, activities, and conduct within the Property of the Common Area.

Establishes rules, policies, and procedures for the Property Owners, and the Association.

Unofficial

ines Regulates the use of property, activities, and conduct within the Property of the Common Area.

Establishes rules, policies, and procedures for the Property Owners, and the Association.

Unofficial GENERAL AND USE RESTRICTIONS All of the Property shall be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the following limitations and restrictions: 2.01 Conditions and Restrictions. All Lots within the Property will be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the Restrictions.

NOTICE The Restrictions are subject to change from time to time. By owning or occupying a Lot, you agree to remain in compliance with the Restrictions, as they may change from time to time.

(b) Ordinances.

Ordinances and requirements imposed by local governmental authorities are applicable to all Lots within the Property. Compliance with the Restrictions is not a substitute for compliance with Applicable Law. Please be advised that the Restrictions do not purport to list or describe each restriction or ordinance or regulation which may be applicable to a Lot located within the Property. Each Owner is advised to review all ordinances, requirements, regulations and encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 6 2022 - 2022000140592 09/16/2022 04:51 PM Page 12 of 88 not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations, or encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC.

ms and provisions of any ordinances, requirements, regulations, or encumbrances which may affect the Owner's Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC.

2.02 Conceptual Plans. All master plans, site plans, brochures, illustrations, information and marketing materials relating to the Property or the Common Area (collectively, the "Conceptual Plans") are conceptual in nature and are intended to be used for illustrative purposes only. The land uses and Improvements reflected on the Conceptual Plans are subject to change at any time and from time to time, and it is expressly agreed and understood that land uses within the Property or the Common Area may include uses which are not shown on the Conceptual Plans. Neither Declarant nor any Homebuilder or other developer of any portion of the Property or the Common Area makes any representation or warranty concerning such land uses and Improvements shown on the Conceptual Plans or otherwise planned for the Property or the Common Area and it is expressly agreed and understood that no Owner will be entitled to rely upon the Conceptual Plans in making the decision to purchase any land or Improvements within the Property. Each Owner who acquires a Lot acknowledges that development of the Property or the Common Area will likely extend over many years, and agrees that the Association will not engage in, or use Association funds to support, protest, challenge, or make any other form of objection to development of the Property or the Common Area or changes in the Conceptual Plans as they may be amended or modified from time to time.

2.03 Single-Family Residential Use. The Lots shall be used solely for private, single

operty or the Common Area or changes in the Conceptual Plans as they may be amended or modified from time to time.

2.03 Single-Family Residential Use. The Lots shall be used solely for private, single family residential purposes. For purposes of this Declaration, the phrase "residential purposes" is intended to prohibit short-term rentals of or transient stays at a Dwelling, i.e., any term less than six (6) months. The Lots may not be used for any other purposes without the prior written consent of the Declarant, which consent may be withheld by the Declarant in its sole and absolute discretion.

Offi No professional, business, or commercial activity to which the general public is invited shall be conducted on any portion of a Lot, except an Owner or Resident may conduct business activities within a Dwelling so long as: (i) such activity complies with Applicable Law; (ii) participation in the business activity is limited to the Owner(s) or Resident(s) of a residence; (iii) the existence or operation of the business activity is not apparent or detectable by sight, i.e., no sign may be erected advertising the business within the Property, sound, or smell from outside the residence; (iv) the business activity does not involve door-to-door solicitation of residents within the Property; (v) the business does not, in the Board's judgment, generate a level of vehicular or pedestrian traffic on a number of vehicles parked within the Property which is noticeably greater than that which is typical of residences in which no business activity is being conducted; (vi) the business activity is consistent with the residential character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other Residents

usiness activity is consistent with the residential character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other Residents within the Property as may be determined in the sole discretion of the Board; and (vii) the business does not require the installation of any machinery other than that customary to normal household operations. In addition, for the purpose of obtaining any business or commercial license, neither the Dwelling nor Lot will be considered open to the public. The terms “business” and “trade”, as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider's family and Page 7 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 13 of 88 for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (x) such activity is engaged in full or part-time; (y) such activity is intended to or does generate a profit; or (z) a license is required.

Leasing of a Dwelling shall not be considered a business or trade within the meaning of this subsection. This subsection shall not apply to any activity conducted by the Declarant or a Homebuilder.

Notwithstanding any provision in this Declaration to the contrary, until the expiration or termination of the Development Period: (i) (ii) Declarant, Homebuilder, and/or its licensees may construct and maintain upon portions of the Common Area, any Lot, or portion

y, until the expiration or termination of the Development Period: (i) (ii) Declarant, Homebuilder, and/or its licensees may construct and maintain upon portions of the Common Area, any Lot, or portion of the Property owned by the Declarant, such facilities and may conduct such activities, which, in Declarants sole opinion, may be reasonably required, convenient, or incidental to the construction or sale of single family residences constructed upon the Lots, including, but not limited to business offices, signs, model homes, and sales offices. Declarant and/or its licensees shall have an easement over and across the Common Area for access and use of such facilities at no charge; and Declarant and or its licensees will have an access easement over and across the Common Area for the purpose of making, constructing and installing Improvements upon the Common Area and the Property.

2.04 Rentals. Nothing in this Declaration will prevent the rental of any Lot and the Improvements thereon by the Owner thereof for residential purposes; provided that: (i) all rentals must be for terms of at least six (6) months and (ii) no portion of a Lot (other than the entire Lot) may be rented. All leases shall be in writing. Notice of any lease, together with such additional information as may be required by the Board, will be remitted to the Association by the Owner on or before the expiration of ten (10) days after the effective date of the lease. Each lease must provide, of be deemed to provide, that the Board shall have the right to terminate the lease upon default by the tenant in observing any provisions of the Restrictions. Regardless of whether or not expressed in the applicable lease, all Owners shall be jointly and severally liable with the tenants

default by the tenant in observing any provisions of the Restrictions. Regardless of whether or not expressed in the applicable lease, all Owners shall be jointly and severally liable with the tenants of such Lot to the Association for any amount which is required by the Association to effect such repairs or to pay any claim for any injury or damage to property caused by the negligence of the tenant of such Lot or for the acts or omissions of the tenant(s) of such Lot which constitute a violation of or non-compliance with, the provisions of the Documents. All leases shall comply with and be subject to the provisions of the Restrictions and the provisions of same shall be deemed expressly incorporated into any lease of a Lot. The Board may adopt and enforce reasonable rules regulating leasing. This Section 2.04 shall also apply to assignments and renewals of leases.

2.05 Subdividing. No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 8 2022 - 2022000140592 09/16/2022 04:51 PM Page 14 of 88 provided, however, that when Declarant is the Owner thereof, Declarant may further divide and subdivide any Lot and convey any easements or other interests less than the whole.

2.06 Hazardous Activities. No activities may be conducted on or within the Property and no Improvements may be constructed on any portion of the Property which, in the opinion of the Board, are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the

pinion of the Board, are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms or fireworks may be discharged upon any portion of the Property unless discharged in conjunction with an event approved in advance by the Roard and no open fires may be lighted or permitted except within safe and well-designed fireplaces or in contained barbecue units while attended and in use for cooking purposes. No portion of the Property may be used for the takeoff, storage, or landing of aircraft (including, without limitation, helicopters) except for medical emergencies.

2.07 Insurance Rates. Nothing shall be done or kept on the Property which would increase the rate of casualty or liability insurance or cause the cancellation of any such insurance on the Common Area, or the Improvements located thereon, without the prior written approval of the Board.

nofficial 2.08 Mining and Drilling. Except for the Third Party Oil, Gas and Mineral Interests defined below, no portion of the Property or the Common Area may be used for the purpose of mining, quarrying, drilling, boring, or exploring for or removing oil, gas, or other hydrocarbons, minerals of any kind, rocks, stones, sand, gravel, aggregate, or earth. This provision will not be construed to prevent the excavation of rocks stones, sand, gravel, aggregate, or earth or the storage of such material for use as fill provided that such activities are conducted in conjunction with the construction of Improvements and/or the development of the Property or the Common Area by the Declarant. This Section 2.08 shall not apply to minerals, resources and groundwater, or some portion thereof or some interest therein, that may have been conveyed or reserved by third parties

a by the Declarant. This Section 2.08 shall not apply to minerals, resources and groundwater, or some portion thereof or some interest therein, that may have been conveyed or reserved by third parties prior to Declarant's ownership of the Property (the "Third Party Oil, Gas, and Mineral Interests"). No representation or warranty, express or implied, is made as to the ownership of the minerals, resources and groundwater or any portion thereof or any interest therein.

2.09 Noise No exterior speakers, horns, whistles, bells, or other sound devices (other than security devices used exclusively for security purposes) shall be located, used, or placed on any portion of the Property. No noise or other nuisance shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to any other portion of the Property or to its Residents. Without limiting the generality of the foregoing, if any noise or nuisance emanates from any Improvement on any Lot, the Association may (but shall not be obligated to) enter any such Improvement and take such reasonable actions necessary to terminate such noise (including silencing any burglar or break-in alarm).

2.10 Clotheslines; Window Air Conditioners. No clotheslines and no outdoor clothes drying or hanging shall be permitted within the Property, nor shall anything be hung, painted or displayed on the outside of the windows (or inside, if visible from the outside) or placed on the outside walls or outside surfaces of doors of any of the Dwelling, and no awnings, canopies or shutters (except for those heretofore or hereinafter installed by Declarant) shall be affixed or placed upon the exterior walls or roofs of Dwellings, or any part thereof, nor relocated or extended,

r shutters (except for those heretofore or hereinafter installed by Declarant) shall be affixed or placed upon the exterior walls or roofs of Dwellings, or any part thereof, nor relocated or extended, without the prior written consent of the ACC. Window air conditioners are prohibited.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 9 2022 - 2022000140592 09/16/2022 04:51 PM Page 15 of 88 2.11 Animals - Household Pets. No animals, including pigs, hogs, swine, poultry, fowl, wild animals, horses, cattle, sheep, goats, or any other type of animal not considered to be a domestic household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term "domestic household pet" shall not mean or include non-traditional pets such pot-bellied pigs, miniature horses, goats, exotic snakes or lizards, monkeys, chickens or other exotic animals). The Board may conclusively determine, in its sole discretion, whether a particular pet is a domestic household pet within the ordinary meaning and interpretation of such words. No Owner may keep more than two (2) animals, unless otherwise approved by the Board. No animal may be allowed to make an unreasonable amount of noise, or to become a nuisance, and no domestic pets will be allowed on the Property other than within the Owner's residence, or the fenced yard space associated therewith, unless confined to a leash. The Association may restrict pets to certain areas on the Property. No animal may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Property, and no kennels or breeding operation will be allowed. No animal

rtain areas on the Property. No animal may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Property, and no kennels or breeding operation will be allowed. No animal may be allowed to run at large, and all animals must be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse, insects, and waste at all times. No pet may be left unattended in yards, porches, or other outside area. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed, and vaccinated as required by Applicable Law. If, in the opinion of the Board, any pet becomes a source of unreasonable annoyance to others, or the owner of the pet fails or refuses to comply with these restrictions, the Owner, upon written notice, may be required to remove the pet from the Property.

2.12 Rubbish and Debris. No rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or Residents. Refuse, garbage, and trash must be kept at all times in covered containers, and such containers must be kept within enclosed structures or appropriately screened from view. Each Owner will contract with an independent disposal service to collect all garbage or other wastes, if such service is not provided by a governmental entity or the Association.

2.13 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (a) (b) inside the garage of the single-family residence constructed on the Lot; or

iation.

2.13 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (a) (b) inside the garage of the single-family residence constructed on the Lot; or behind the single-family residence or fence constructed on the Lot in such a manner that the trash container and recycling bin is not visible from any street, alley, or adjacent Lot.

The Board shall have the right to specify additional locations on each Owner's Lot in which trash containers or recycling bins must be stored. All trash containers and recycling bins must be removed from the street within 24 hours of trash pick-up.

Residents are required to remove all trash and recycling containers from the street within 24 hours of trash or recycling pick up.

Violations of this provision may result in a fine.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 10 2022 - 2022000140592 09/16/2022 04:51 PM Page 16 of 88 2.14 Antennae. Except as expressly provided below, no exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained, or placed on a Lot without the prior written approval of the ACC; provided, however, that: (i) (ii) (iii) an antenna designed to receive direct broadcast services, including direct-to-home satellite services, that is one meter or less in diameter; or an antenna designed to receive video programming services via multipoint services, including multi-channel distribution one multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that meter or less in diameter or diagonal measurement; or Cial an antenna that is designed to receive television or radio broadcast signals;

ixed services, and local multipoint distribution services, that meter or less in diameter or diagonal measurement; or Cial an antenna that is designed to receive television or radio broadcast signals; (collectively, (i) through (iii) are referred to herein as the Permitted Antennas") will be permitted subject to reasonable requirements as to location and screening as may be set forth in rules adopted by the ACC, consistent with Applicable Law, in order to minimize obtrusiveness as viewed from streets and adjacent property. Declarant and/or the Association will have the right, but not the obligation, to erect an aerial, satelite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or any portion of the Property.

Except as expressly provided herein, no exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained, or placed on a Lot without the prior written approval of the ACC.

QU 2.15 Location of Permitted Antennae. A Permitted Antenna may be installed solely on the Owner's Lot and shall not encroach upon any street, Common Area, or any other portion of the Property A Permitted Antenna shall be installed in a location on the Lot from which an acceptable quality signal can be obtained and where least visible from the street and the Property, other than the Lot In order of preference, the locations of a Permitted Antenna which will be considered least visible by the ACC are as follows: (i) (ii) Attached to the back of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street; then

ipal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street; then Attached to the side of the principal single-family residence constructed on the Lot, with no part of the Permitted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street.

Page 11 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 17 of 88 The ACC may, from time to time, modify, amend, or supplement the rules regarding installation and placement of Permitted Antennas.

2.16 Signs. Unless otherwise prohibited by Applicable Law, no sign of any kind may be displayed to the public view on any Lot without the prior written approval of the ACC, except for: (i) (ii) (iii) (iv) (v) signs which are permitted pursuant to the Design Guidelines or Rules and Regulations; signs which are part of Declarant's or Homebuilder's overall marketing, sale, or construction plans or activities for the Property; one (1) 18" x 24" temporary “For Sale” or (For Lease". The sign must be removed within two (2) business days following the sale or lease of the Lot; permits as may be required by legal proceedings or a governmental entity: political signs may be erected provided the sign: (a) is erected no earlier than the 90th day before the date of the election to which the sign relates; (b) is removed no later than the 10th day after the date of the election to which the sign relates; and (c) is groundmounted Only one sign may be erected for each candidate or ballot tem addition, signs which include any of the

the 10th day after the date of the election to which the sign relates; and (c) is groundmounted Only one sign may be erected for each candidate or ballot tem addition, signs which include any of the components or characteristics described in Section 259.002(d) of the Texas Election Code are prohibited; Und official 2.17 (vi) (vir) a religious item on the entry door or door frame of a residence (which may not extend beyond the outer edge of the door frame), provided that the size of the item(s), individually or in combination with other religious items on the entry door or door frame of the residence, does not exceed twenty-five (25) square inches; a "no soliciting” and “security warning” sign near or on the front door to their residence, provided, that the sign may not exceed twenty-five (25) square inches.

Flags-Approval Requirements. An Owner is permitted to display the flag of the United States of America, the flag of the State of Texas, or an official or replica flag of any branch of the United States Military, or one (1) flag with official insignia of a college or university ("Permitted Flag") and is permitted to install a flagpole no more than five feet (5') in length affixed to the front of a residence near the principal entry or affixed to the rear of a residence ("Permitted Flagpole"). Only two (2) permitted Flagpoles are allowed per residence. A Permitted Flag or Permitted Flagpole need not be approved in advance by the ACC. Approval by the ACC is required prior to installing vertical freestanding flagpoles installed in the front or back AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 12 2022 - 2022000140592 09/16/2022 04:51 PM Page 18 of 88

ding flagpoles installed in the front or back AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 12 2022 - 2022000140592 09/16/2022 04:51 PM Page 18 of 88 yard area of any Lot ("Freestanding Flagpole”). To obtain Architectural approval of any Freestanding Flagpole, the Owner shall provide the ACC with the following information: (a) the location of the Freestanding Flagpole to be installed on the Lot; (b) the type of Freestanding Flagpole to be installed; (c) the dimensions of the Freestanding Flagpole; and (d) the proposed materials of the Freestanding Flagpole. An application may only be submitted by an Owner. The application shall be submitted in accordance with the provisions of Article 9 of this Declaration.

2.18 Flags Installation and Display. Unless otherwise approved in advance and in writing by the ACC, Permitted Flags, Permitted Flagpoles and Freestanding Flagpoles, installed in accordance with the application, must comply with the following: (i) (ii) (iii) (iv) No more than one (1) Freestanding Flagpole OR no more than two (2) Permitted Flagpoles are permitted per Lotion which only Permitted Flags may be displayed; Any Permitted Flagpole must be no longer than five feet (5') in length and any Freestanding Flagpole must be no more than twenty feet (20') in height; Any Permitted Flag displayed on any flagpole may not be more than three feet in height by five feet in width (3'x5'); Unoff ficial With the exception of flags displayed on Common Area or any Lot which is being used for marketing purposes by the Declarant or a Homebuilder, the flag of the United States of America must be displayed in accordance with 4 U.S.C. Sections 5-10 and the flag of the State of Texas must be displayed in accordance with

Declarant or a Homebuilder, the flag of the United States of America must be displayed in accordance with 4 U.S.C. Sections 5-10 and the flag of the State of Texas must be displayed in accordance with Chapter 3100 of the Texas Government Code; The display of a Permitted Flag, or the location and construction of a Permitted Flagpole or Freestanding Flagpole must comply with all Applicable Law, easements and setbacks of record; Each Permitted Flagpole and Freestanding Flagpole must be constructed of permanent, long-lasting materials, with a finish appropriate to the materials used in the construction thereof and harmonious with the residence; (vii) Any Permitted Flag, Permitted Flagpole and Freestanding Flagpole must be maintained in good condition and any deteriorated Permitted Flag or deteriorated or structurally unsafe Permitted Flagpole or Freestanding Flagpole must be repaired, replaced or removed; (viii) A Permitted Flag may be illuminated by no more than one (1) halogen landscaping light of low beam intensity which shall not be aimed towards or directly affect any neighboring Lot; and AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 13 2022 - 2022000140592 09/16/2022 04:51 PM Page 19 of 88 (ix) Any external halyard of a Permitted Flagpole or Freestanding Flagpole must be secured so as to reduce or eliminate noise from flapping against the metal of the Permitted Flagpole or Freestanding Flagpole.

The requirements of this Section 2.18 shall not apply to any flag or flagpole erected by the Declarant.

2.19 Temporary Structures. No tent, shack, or other temporary building, or Improvement, or structure shall be placed upon the Property; provided, however, that temporary

pole erected by the Declarant.

2.19 Temporary Structures. No tent, shack, or other temporary building, or Improvement, or structure shall be placed upon the Property; provided, however, that temporary structures necessary for storage of tools and equipment, and for office space for Homebuilders, architects, and foremen during actual construction may be maintained with the prior approval the Declarant, approval to include the nature, size, duration, and location of such structure 2.20 Unsightly Articles; Vehicles. No article deemed to be unsightly by the Board shall be permitted to remain on any Lot so as to be visible from adjoining property or from public or private thoroughfares. Without limiting the generality of the foregoing, trailers, graders, trucks other than pickups, boats, tractors, campers, wagons, buses, motorcycles, motor scooters, allterrain vehicles, and garden and lawn maintenance equipment shall be kept, at all times, except when in actual use, in garages and no repair or maintenance work shall be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. No: (i) racing vehicles; or (in) other vehicles (including, without limitation, motorcycles or motor scooters) which are inoperable or do not have a current license tag shall be permitted to remain visible on any Lot or to be parked on any street, driveway, or roadway within the Property or the Common Area.

Unofficia Parking of commercial vehicles or equipment, recreational vehicles, boats and other watercraft, trailers, stored vehicles or inoperable vehicles in places other than in enclosed garages is prohibited; provided, construction, service and delivery vehicles may be exempt from this

other watercraft, trailers, stored vehicles or inoperable vehicles in places other than in enclosed garages is prohibited; provided, construction, service and delivery vehicles may be exempt from this provision for such period of time as is reasonably necessary to provide service or to make a delivery to a residence.

Mobile homes are prohibited. Notwithstanding the foregoing, sales trailers or other temporary structures installed by the Declarant, Homebuilder or expressly approved by the ACC shall be permitted.

Basketball Goals; Permanent and Portable. Permanent and portable basketball goals are prohibited All 2.22 Garages. An Owner's automobile shall be parked overnight in the Owner's garage.

garages shall be maintained for the parking of automobiles, and may not be used for storage or other purposes which preclude its use for the parking of two (2) automobiles. Garage doors must be fully closed when not in use. No garage may be permanently enclosed or otherwise used for habitation unless approved in advance by the ACC. Cooking is prohibited in garages.

2.23 Holiday Decorations. No decorative appurtenances such as sculptures, birdbaths and birdhouses, fountains, or other decorative embellishments shall be placed on the Dwelling or on any other portion of a Lot which is visible from any street, unless such specific items have been AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 14 2022 - 2022000140592 09/16/2022 04:51 PM Page 20 of 88 approved in writing by the ACC. Customary seasonal decorations for holidays are permitted without approval but shall be removed within thirty (30) days of the applicable holiday 2.24 On Street Parking. Residents are strongly encouraged not to park on any road or

for holidays are permitted without approval but shall be removed within thirty (30) days of the applicable holiday 2.24 On Street Parking. Residents are strongly encouraged not to park on any road or street within the Property unless in the event of an emergency. “Emergency" for purposes of the foregoing sentence shall mean an event which jeopardizes life or property. "Parked" as used herein shall be defined as a vehicle left unattended by a licensed operator for more than thirty (30) consecutive minutes. This provision will not apply to Declarant or its designes during the Development Period. Visitor parking areas (being a street or alley) shall only be used for temporary parking by visitors. “Temporary" for the purposes of the foregoing sentence shall mean no more than twenty-four (24) hours.

2.25 Limited or Restricted Driveway Parking. No vehicle may be parked on a driveway constructed on a Lot if the vehicle, when parked, would obstruct or otherwise block ingress and egress to and from sidewalks adjacent to the driveway, i No portion of the vehicle may extend over a line extended from the rear of one sidewalk adjacent to the driveway to the rear of the other sidewalk adjacent to the driveway, or would obstruct or otherwise block ingress and egress to and from any street, alley or fire lane.

2.26 Compliance with Restrictions Each Owner, his or her family, Residents of a Dwelling, tenants, and the guests, invitees, and licensees of the preceding shall comply strictly with the provisions of the Restrictions as the same may be amended from time to time. Failure to comply with any of the Restrictions shall constitute a violation of the Restrictions and may result in a fine against the Owner in accordance with Section 6.12 of this Declaration, and shall give rise

comply with any of the Restrictions shall constitute a violation of the Restrictions and may result in a fine against the Owner in accordance with Section 6.12 of this Declaration, and shall give rise to a cause of action to recover sums due for damages or injunctive relief, or both, maintainable by the Declarant, the Board on behalf of the Association the ACC or by an aggrieved Owner. Without limiting any rights or powers of the Association the Board may (but shall not be obligated to) remedy or attempt to remedy any violation of any of the provisions of Restrictions, and the Owner whose violation has been so remedied shall be personally liable to the Association for all costs and expenses of effecting (or attempting to effect) such remedy. If such Owner fails to pay such costs and expenses upon demand by the Association, such costs and expenses (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, at the rate of one and one-half percent (1-1/2%) per month) shall be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s). Each such Owner shall release and hold harmless the Association and its officers, directors, employees and agents from any cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association's acts or activities under this Section 2.26 (including any cost, loss, damage,

cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association's acts or activities under this Section 2.26 (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Association's negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Association's gross negligence or willful misconduct. “Gross negligence" as used herein does not include simple negligence, contributory negligence or similar negligence short of actual gross negligence.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 15 2022 - 2022000140592 09/16/2022 04:51 PM Page 21 of 88 2.27 Liability of Owners for Damage to Common Area. No Owner shall in any way alter, modify, add to or otherwise perform any work upon the Area of Common Responsibility or Common Area without the prior written approval of the Board. Each Owner shall be liable to the Association for any and all damages to: (i) the Common Area and any Improvements constructed thereon; or (ii) any Improvements constructed on any Lot, the maintenance of which has been assumed by the Association, including but not limited to the Area of Common Responsibility, which damages were caused by the neglect, misuse or negligence of such Owner or Owner's family, or by any tenant or other Resident of such Owner's Lot, or any guest or invitee of such Owner. The full cost of all repairs of such damage shall be levied as an Individual Assessment against such Owner's Lot, secured by a lien against such Owner's Lot and collectable in the same manner as provided in Section 6.10 of this Declaration.

age shall be levied as an Individual Assessment against such Owner's Lot, secured by a lien against such Owner's Lot and collectable in the same manner as provided in Section 6.10 of this Declaration.

2.28 Water Quality Facilities, Drainage Facilities and Drainage Ponds The Common Area may include one or more water quality facilities, sedimentation drainage and detention facilities, or ponds which serve all or a portion of the property and are inspected, maintained and administered by the Association in accordance with all Applicable Law. Access to these facilities and ponds is limited to persons engaged by the Association to periodically maintain such facilities. Each Resident is advised that the water quality facilities, sedimentation, drainage and detention facilities and ponds are an active utility feature integral to the proper operation of the Property and may periodically hold standing water. Each Resident is advised that entry into the water quality facilities, sedimentation, drainage and detention facilities or ponds may result in injury and is a violation of the Restrictions.

2.29 Party Walls. A fence or wall located on or near the dividing line between two (2) Lots or Dwellings constructed upon such Lots and intended to benefit both Lots constitutes a "Party Wall" and, to the extent not inconsistent with the provisions of this Section 2.29, is subject to the general rules of law regarding party walls and liability for property damage due to negligence, willful acts, or omissions.

(a) Encroachments & Fasement. If the Party Wall is on one Lot due to an error in construction, the Party Wall is nevertheless deemed to be on the dividing line for purposes of this Section 2.29. Each Lot sharing a Party Wall is subject to an easement for the existence and

error in construction, the Party Wall is nevertheless deemed to be on the dividing line for purposes of this Section 2.29. Each Lot sharing a Party Wall is subject to an easement for the existence and continuance of any encroachment by the Party Wall as a result of construction, repair, shifting, settlement, or movement in any portion of the Party Wall, so that the encroachment may remain undisturbed as long as the Party Wall stands. Each Lot is subject to a reciprocal easement for the maintenance, repair, replacement, or reconstruction of the Party Wall.

Right to Repair. If the Party Wall is damaged or destroyed from any cause, the Owner of either Lot may repair or rebuild the Party Wall to its previous condition, and the Owners of both Lots, their successors and assigns, have the right to the full use of the repaired or rebuilt Party Wall.

(c) Maintenance Costs. The Owners of the adjoining Lots share equally the costs of repair, reconstruction, or replacement of the Party Wall, subject to the right of one Owner to call for larger contribution from the other under any rule of law regarding liability for negligence or willful acts or omissions. If an Owner is responsible for damage to or destruction of the Party Wall, that Owner will bear the entire cost of repair, reconstruction, or replacement. If an Owner AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 16 2022 - 2022000140592 09/16/2022 04:51 PM Page 22 of 88 fails or refuses to pay his share of costs of repair or replacement of the Party Wall, the Owner advancing monies has a right to file a claim of lien for the monies advanced in the Official Public Records of Collin County, Texas, and has the right to foreclose the lien as if it were a

, the Owner advancing monies has a right to file a claim of lien for the monies advanced in the Official Public Records of Collin County, Texas, and has the right to foreclose the lien as if it were a mechanic's lien. The right of an Owner to require contribution from another Owner under this Section is appurtenant to the Lot and passes to the Owner's successors in title.

(d) Alterations. The Owner of a Lot sharing a Party Wall may not cut openings in the Party Wall or alter or change the Party Wall in any manner that affects the use, condition, or appearance of the Party Wall to the adjoining Lot or residence. The Party Wall will always remain in the same location as when erected unless otherwise approved by the Owner of each Lot sharing the Party Wall and the ACC.

(e) (f) Speakers. Speakers are prohibited from being installed in any Party Wall.

Association Insurance. Notwithstanding the foregoing, Party Walls that are covered by an insurance policy maintained by the Association pursuant to Section 8.01 shall be repaired and replaced in accordance to the provisions set forth in Section 8.01.

2.30 official Injury to Person or Property. Neither the Association nor Declarant, or their respective directors, officers, committees, agents, and employees have a duty or obligation to any Owner, Resident or their guests: (a) to supervise minor children or any other person; (b) to fence or otherwise enclose any Lot or Common Area; or (c) to provide security or protection to any Owner, Resident, or their guests, employees, contractors, and invitees from harm or loss. By accepting title to a Lot, each Owner agrees that the limitations set forth in this Section are reasonable and constitute the exercise of ordinary care by the Association and Declarant. EACH

r loss. By accepting title to a Lot, each Owner agrees that the limitations set forth in this Section are reasonable and constitute the exercise of ordinary care by the Association and Declarant. EACH OWNER AGREES TO RELEASE AND HOLD HARMLESS THE ASSOCIATION AND DECLARANT, AND DECLARANT'S AGENTS FROM ANY CLAIM OF DAMAGES, TO PERSON OR PROPERTY ARISING OUT OF AN ACCIDENT OR INJURY IN OR ABOUT THE PROPERTY TO THE EXTENT AND ONLY TO THE EXTENT CAUSED BY THE ACTS OR OMISSIONS OF SUCH OWNER, HIS TENANT, HIS GUESTS, EMPLOYEES, CONTRACTORS, OR INVITEES TO THE EXTENT SUCH CLAIM IS NOT COVERED BY INSURANCE OBTAINED BY THE ASSOCIATION AT THE TIME OF SUCH ACCIDENT OR INJURY.

2.31 View Impairment. Neither Declarant nor the Association guarantee or represent that any view over and across the Lots, or any open space or Common Area within the Property will be preserved without impairment. Neither the Declarant, the ACC, nor the Association shall have no obligation to relocate, prune, or thin trees or other landscaping. The Association (with respect to any Common Area) will have the right to add trees and other landscaping from time to time, subject to Applicable Law. There shall be no express or implied easements for view purposes or for the passage of light and air.

2.32 Safety and Security. Each Owner and Resident of a Lot, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their property within the Property or the Common Area. The Association may, but shall not be obligated to, maintain or support certain activities within the Property or the Common Area designed to promote or enhance the level of safety or security which each person provides for himself or herself AMENDED AND RESTATED DECLARATION

tain activities within the Property or the Common Area designed to promote or enhance the level of safety or security which each person provides for himself or herself AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 17 2022 - 2022000140592 09/16/2022 04:51 PM Page 23 of 88 and his or her property. However, neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within the Property or the Common Area, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made that any systems or measures, including security monitoring systems or any mechanism or system for limiting access to the Property or the Common Area, cannot be compromised or circumvented; or that any such system or security measures undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Owner acknowledges, understands, and shall be responsible for informing any Residents of such Owner's Lot that the Association, its Board and committees, and the Declarant are not insurers or guarantors of security or safety and that each person within the Property assumes all risks of personal injury and loss or damage to property, including any residences or Improvements constructed upon any Lot and the contents thereof, resulting from acts of third parties.

2.33 No Warranty of Enforceability. Declarant makes no warranty or representation as to the present or future validity or enforceability of any Restrictions Any Owner acquiring a

cts of third parties.

2.33 No Warranty of Enforceability. Declarant makes no warranty or representation as to the present or future validity or enforceability of any Restrictions Any Owner acquiring a Lot in reliance on the Restrictions shall assume all risks of the validity and enforceability thereof and, by acquiring the Lot, agrees to hold Declarant harmless therefrom.

2.34 Solar Energy Device. A Solar Energy Device may be installed with the advance written approval of the ACC in accordance with the procedures set forth below.

nofficial (a) Application. To obtain ACC approval of a Solar Energy Device, the Owner shall provide the ACC with the following information: (1) the proposed installation location of the Solar Energy Device; and (ii) a description of the Solar Energy Device, including the dimensions, manufacturer, and photograph or other accurate depiction. An application may only be submitted by an Owner. The application shall be submitted in accordance with the provisions of Article 9 of this Declaration. The installation of a Solar Energy Device on any portion of a Lot which is maintained by the Association, including roofing and or any yard areas is prohibited.

(b) Approval Process. The ACC will review the application in accordance with the terms and provisions of Article 9 of this Declaration. The ACC will approve a Solar Energy Device if the application complies with Section 2.34(c) below UNLESS the ACC makes a written determination that placement of the Solar Energy Device, despite compliance with Section 2.34(c), will create a condition that substantially interferes with the use and enjoyment of property within the Property by causing unreasonable discomfort or annoyance to persons of

nce with Section 2.34(c), will create a condition that substantially interferes with the use and enjoyment of property within the Property by causing unreasonable discomfort or annoyance to persons of ordinary sensibilities. The ACC's right to make a written determination in accordance with the foregoing sentence is negated if all Owners of Lots immediately adjacent to the Owner/applicant provide written approval of the proposed placement. Any proposal to install a Solar Energy Device on property owned or maintained by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request.

(c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each application and each Solar Energy Device to be installed in accordance therewith must comply with the following: AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 18 2022 - 2022000140592 09/16/2022 04:51 PM Page 24 of 88 (i) (ii) The Solar Energy Device must be located on the roof of the residence located on the Owner's Lot, entirely within a fenced area of the Owner's Lot, or entirely within a fenced patio located on the Owner's Lot. If the Solar Energy Device will be located on the roof of the residence, it shall not be located on the roof facing the street unless the location proposed by the Owner increases the estimated annual energy production of the Solar Energy Device, as determined by using a publicly available modeling tool provided by the National Renewable Energy Laboratory, by more than ten (10%) percent above the energy production of the Solar Energy Device if installed in the location

ublicly available modeling tool provided by the National Renewable Energy Laboratory, by more than ten (10%) percent above the energy production of the Solar Energy Device if installed in the location designated by the ACC. If the Owner desires to contest the alternate location proposed by the ACC, the Owner should submit information to the ACC which demonstrates that the Owner's proposed location meets the foregoing criteria. If the Solar Energy Device will be located in the fenced area of the Owner's Lot or patio, no portion of the Solar Energy Device may extend above the fence line.

Inofficial If the Solar Energy Device is mounted on the roof of the principal residence located on the Owner's Lot, then: (a) the Solar Energy Device may not extend higher than or beyond the roofline; (b) the Solar Energy Device must conform to the slope of the roof and the top edge of the Solar Device must be parallel to the roofline; (c) the frame, support brackets, or visible piping or wiring associated with the Solar Energy Device must be silver, bronze 2.35 Rainwater Harvesting Systems. Rain barrels or rainwater harvesting systems (a "Rainwater Harvesting System may be installed with the advance written approval of the ACC.

Application. To obtain ACC approval of a Rainwater Harvesting System, the Owner shall provide the ACC with the following information: (a) the proposed installation location of the Rainwater Harvesting System; and (b) a description of the Rainwater Harvesting System, including the color, dimensions, manufacturer, and photograph or other accurate depiction. An application may only be submitted by an Owner.

(b) Approval Process. The decision of the ACC will be made in accordance with

r, dimensions, manufacturer, and photograph or other accurate depiction. An application may only be submitted by an Owner.

(b) Approval Process. The decision of the ACC will be made in accordance with Article of this Declaration. Any proposal to install a Rainwater Harvesting System on property owned by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this policy when considering any such request.

(c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each application and each Rainwater Harvesting System to be installed in accordance therewith must comply with the following: AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 19 2022 - 2022000140592 09/16/2022 04:51 PM Page 25 of 88 (d) (i) (ii) (iii) (iv) (v) The Rainwater Harvesting System must be consistent with the color scheme of the residence constructed on the Owner's Lot, as reasonably determined by the ACC.

The Rainwater Harvesting System does not include any language or other content that is not typically displayed on such a device.

The Rainwater Harvesting System is in no event located between the front of the residence constructed on the Owner's Lot and any adjoining or adjacent street.

There is sufficient area on the Owner's Lot to install the Rainwater Harvesting System, as reasonably determined by the ACC.

fficial If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot the ACC may regulate the size, type, shielding of, and materials used in the

d on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. See Section 2.35(d) for additional guidance.

Guidelines. If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. Accordingly, when submitting an application, the application should describe methods proposed by the Owner to shield the Rainwater Harvesting System from the view of any street, Common Area, or another Owner's Lot. When reviewing an application for a Rainwater Harvesting System that will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, any additional requirements imposed by the ACC to regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System, may not prohibit the economic installation of the Rainwater Harvesting System, as reasonably determined by the ACC.

2.36 Xeriscaping. As part of the installation and maintenance of landscaping on an Owner Lot, an Owner may submit plans for and install drought tolerant landscaping ("Xeriscaping") upon written approval by the ACC. All Owners implementing Xeriscaping shall comply with the following: (a) Application. Approval by the ACC is required prior to installing Xeriscaping.

To obtain the approval of the ACC for Xeriscaping, the Owner shall provide the ACC with the

comply with the following: (a) Application. Approval by the ACC is required prior to installing Xeriscaping.

To obtain the approval of the ACC for Xeriscaping, the Owner shall provide the ACC with the following information: (i) the proposed site location of the Xeriscaping on the Owner's Lot; (ii) a description of the Xeriscaping, including the types of plants, border materials, hardscape materials and photograph or other accurate depiction and (iii) the percentage of yard to be covered with gravel, rocks and cacti. A Xeriscaping Application may only be submitted by an Owner unless the Owner's tenant provides written confirmation at the time of submission that AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 20 2022 - 2022000140592 09/16/2022 04:51 PM Page 26 of 88 the Owner consents to the application. The ACC is not responsible for: (i) errors or omissions in the application submitted to the ACC for approval; (ii) supervising installation or construction to confirm compliance with an approved application or (iii) the compliance of an approved application with Applicable Law.

(b) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each application and all Xeriscaping to be installed in accordance therewith must comply with the following (c) (i) (ii) The Xeriscaping must be aesthetically compatible with other landscaping in the community as reasonably determined by the ACC. For purposes of this Section 2.36, "aesthetically compatible" shall mean overall and long-term esthetic compatibility within the community For example, an Owner's Lot plan may be denied if the ACC determines that. a) the proposed Xeriscaping would not be harmonious with already

ll and long-term esthetic compatibility within the community For example, an Owner's Lot plan may be denied if the ACC determines that. a) the proposed Xeriscaping would not be harmonious with already established turf and landscaping in the overall community; and/or b) the use of specific turf or plant materials would result in damage to or cause deterioration of the turf or landscaping of an adjacent property owner, resulting in a reduction of aesthetic appeal of the adjacent property Owner's Lot.

No Owners shall install gravel, rocks or cacti that in the aggregate encompass over ten percent (10%) of such Owner's front yard or ten percent (10%) of such Owner's back yard.

offic (iii) The Xeriscaping must not attract diseases and insects that are harmful to the existing landscaping on neighboring Lots, as reasonably determined by the ACC.

Process. The decision of the ACC will be made within a reasonable time, or within the time period otherwise required by the principal deed restrictions which govern the review and approval of improvements. An application submitted to install Xeriscaping on property owned by the Association or property owned in common by members of the Association will not be approved. Any proposal to install Xeriscaping on property owned by the Association or property owned in common by members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to the requirements set forth in this Section 2.36 when considering any such request.

Approval. Each Owner is advised that if the application is approved by the ACC, installation of the Xeriscaping must: (i) strictly comply with the application; (ii) commence within thirty (30) days of approval; and (iii) be diligently prosecuted to

ication is approved by the ACC, installation of the Xeriscaping must: (i) strictly comply with the application; (ii) commence within thirty (30) days of approval; and (iii) be diligently prosecuted to completion. If the Owner fails to cause the Xeriscaping to be installed in accordance with the approved application, the ACC may require the Owner to: (i) modify the application to accurately reflect the Xeriscaping installed on the property; or (ii) remove the Xeriscaping and reinstall the Xeriscaping in accordance with the approved application. Failure to install Xeriscaping in accordance with AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 21 2022- 2022000140592 09/16/2022 04:51 PM Page 27 of 88 the approved application or an Owner's failure to comply with the post-approval requirements constitutes a violation of this Declaration and may subject the Owner to fines and penalties. Any requirement imposed by the ACC to resubmit an application or remove and relocate Xeriscaping in accordance with the approved Xeriscaping Application shall be at the Owner's sole cost and expense.

2.37 Dirt Disclosure. This representation is made that any Lot or Common Area in the Subdivision is on native virgin soil or that the soil has a particular nutritional value for plants. This disclosure is made to give inquiry notice to prospective Owners, who may make their own determinations about the composition and nutriments of the material on and beneath the surface of any lot in the Property. Additionally, the Dwellings and other improvements in the Subdivision are built on ground that may be composed partly or wholly of expansive clay soils, which are prone

ace of any lot in the Property. Additionally, the Dwellings and other improvements in the Subdivision are built on ground that may be composed partly or wholly of expansive clay soils, which are prone to expand and contract in response to wetness and drought if the Owner does not properly maintain the soil to prevent soil movement. Cycles of shrinkage and swelling may put stress on structures, resulting in property damage and diminished property values. Each Owner is responsible for preserving the structural integrity of the home and other improvements on the lot by maintaining the moisture content of the Lot's soil to reduce the potential for soil movement that may result in damage to improvements. EACH OWNER IS HEREBY NOTIFIED THAT THE SOIL COMPOSITION IN NORTH TEXAS IN GENERAL AND THE PROPERTY IN PARTICULAR AND THE CONDITION OF THE LOTS MAY RESULT IN THE SWELLING AND/OR CONTRACTION OF THE SON IN AND AROUND THE LOT IF THE OWNER OF THE LOT DOES NOT EXERCISE THE PROPER CARE AND MAINTENANCE OF THE SOIL REQUIRED TO PREVENT SOIL MOVEMENT. If the Owner fails to exercise the necessary precautions, damage, settlement, movement or upheaval to the foundation and structural failure may occur. Owners are highly encouraged to install and maintain proper irrigation around their Dwelling or take such other measures to ensure even, proportional, and prudent watering around the foundation of the Dwelling.

2.38 Solid Waste Composting of Vegetation. Solid waste composting systems of vegetation, including grass clippings, leaves or brush (a “Composting System") may be installed with the advance written approval of the ACC. Composting of any other material is strictly prohibited, including, but not limited to, manure, meat, fish, carcasses, dairy materials, oils,

be installed with the advance written approval of the ACC. Composting of any other material is strictly prohibited, including, but not limited to, manure, meat, fish, carcasses, dairy materials, oils, greases, sewage, sludge, diapers, and paper sludges.

(a) Composting Systems may only be located in the fenced rear-yard or patio and shall not be taller than the fence line; Composting Systems must be properly maintained at all times, including regular cleaning, and must be enclosed or covered at all times; (c) Composting Systems which become unsightly or could serve as a breeding ground for mosquitoes or other insects must be removed by the Owner; and (d) Composting Systems are prohibited if a Court determines that the installation thereof violates any law or threatens the public health or safety.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 22 2022 - 2022000140592 09/16/2022 04:51 PM Page 28 of 88 ARTICLE 3 CONSTRUCTION RESTRICTIONS 3.01 Approval for Construction. Unless prosecuted by the Declarant, no Improvements shall hereafter be placed, maintained, erected, or constructed upon any Lot without the prior written approval of the ACC in accordance with Article 9 of this Declaration.

3.02 Construction Activities. The Restrictions will not be construed or applied so as to unreasonably interfere with or prevent normal construction activities during the construction of Improvements by an Owner (including Declarant or a Homebuilder) upon or within the Property.

Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or construction machinery, posting

ecifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or construction machinery, posting of signs or similar activities, provided that such construction is pursued to completion with reasonable diligence and conforms to usual construction practices in the area in event that construction upon any Lot does not conform to usual practices in the area as determined by the ACC in its sole and reasonable judgment, the ACC will have the authority to seek an injunction to stop such construction. In addition, if during the course of construction upon any Lot there is excessive accumulation of debris of any kind which would render the Let or any portion thereof unsanitary, unsightly, offensive, or detrimental to it or any other portion of the Property, then the ACC may contract for or cause such debris to be removed, and the Owner of the Lot will be liable for all reasonable expenses incurred in connection therewith 3.03 Drainage. There shall be no interference with the established drainage patterns over any of the Property, including the Lots, except by Declarant, unless adequate provision is made for proper drainage and such provision is approved in advance by the ACC. Specifically, and not by way of limitation, no Improvement, including landscaping, may be installed which impedes the proper drainage of water between Lots or within the Property.

3.04 Compliance with Setbacks. No residence or any other permanent structure or Improvement may be constructed on any Lot nearer to a street than the minimum building setback lines shown on the Plat and no building shall be located on any utility easements. The ACC may

ructure or Improvement may be constructed on any Lot nearer to a street than the minimum building setback lines shown on the Plat and no building shall be located on any utility easements. The ACC may require additional setbacks in conjunction with the review and approval of proposed Improvements in accordance with Article 9 of the Declaration.

ARTICLE 4 DISCLOSURES This Article discloses selective features of the Property or the Common Area that may not be obvious to potential Owners and Residents. Because features may change over time, no disclosure in this Article should be relied upon without independent confirmation.

4.01 Service Contracts. Declarant may have contracted, on behalf of the Owner, for one or more services to be provided by vendors to the Dwellings on a contract basis, such as intrusion monitoring and cable television. In that event, whether or not an Owner chooses to use the service, the Owner is required its share of the contract for the contract period. The Association may serve as the conduit for the service fees and payments, which may be considered Regular Assessments or Individual Assessments. However, the Association is not the service provider and AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 23 2022 - 2022000140592 09/16/2022 04:51 PM Page 29 of 88 has no responsibility or liability for the availability or quality of the service, or for the maintenance, repair, or replacement of the wires, conduits, equipment, or other fittings relating to the contract service.

4.02 Adjacent Thoroughfares. The Property is located adjacent to thoroughfares that may be affected by traffic and noise from time to time and may be improved and/or widened in the future.

ct service.

4.02 Adjacent Thoroughfares. The Property is located adjacent to thoroughfares that may be affected by traffic and noise from time to time and may be improved and/or widened in the future.

4.03 Fire Sprinkler Disclosure. The Structures may be constructed with a fire sprinkler system. If sprinklers are present, water lines and sprinkler heads may be in the ceilings above rooms in the Dwelling. This disclosure is given because damage to, or a malfunction of, a water line or sprinkler head may harm or destroy real and personal property. Each Owner is solely responsible for all of the following: (i) (ii) (iii) determining the location and proper care of the sprinkler equipment, water lines and sprinkler heads in the Dwelling; preserving the integrity and functionality of the portion of the fire sprinkler system in their Dwelling; nofficial (iv) instructing each Resident, invitees and contractors about the care and protection of the sprinkler system, including any applicable rules adopted by the Board; any damage to them Dwelling, an adjoining Dwelling, Common Area, and or any personal property (such as furnishings and clothing) caused by the functioning or malfunctioning of any component of the sprinkler system in or serving their Dwelling; complying with any municipal or other regulatory inspection requirements, at such Owner's expense.

Components of a fire sprinkler system may be located in the attic portion of the Dwelling.

If the attic is also the location of air conditioning equipment or other equipment that requires periodic servicing or repair, to ensure protection of the water lines and sprinkler heads, the Owner is advised to closely supervise all persons using the attic.

4.04 4.05 The Association does not inspect or fix water lines

epair, to ensure protection of the water lines and sprinkler heads, the Owner is advised to closely supervise all persons using the attic.

4.04 4.05 The Association does not inspect or fix water lines and sprinkler heads, if any, in your Dwelling.

Adjacent Use. No representations are made regarding the use of adjacent property.

Outside Conditions. Since in every neighborhood there are conditions that different people may find objectionable, it is acknowledged that there may be conditions outside of the Property that an Owner or Resident may find objectionable, and it shall be the sole AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 24 2022 - 2022000140592 09/16/2022 04:51 PM Page 30 of 88 responsibility of an Owner or Resident to become acquainted with neighborhood conditions that could affect the Property.

4.06 Concrete. Minor cracks in poured concrete, including foundations, garage floors, sidewalks, driveways and patios, are inevitable as a result of the natural movement of soil (expansion and contraction), shrinkage during the curing of the concrete, and settling of a Structure.

4.07 Construction Activities. Declarant, Homebuilders, and their licensees will be constructing portions of the Property and engaging in other construction activities related to the construction of Structures, Dwellings, and Common Area. Such construction activities may, from time to time, produce certain conditions on the Property, including, without limitation (a) noise or sound that is objectionable because of its volume, duration, frequency or shrillness; (b) smoke; (c) noxious, toxic or corrosive fumes or gases; (d) obnoxious oders; e) dust, dirt or tying trash;

e or sound that is objectionable because of its volume, duration, frequency or shrillness; (b) smoke; (c) noxious, toxic or corrosive fumes or gases; (d) obnoxious oders; e) dust, dirt or tying trash; (f) unusual fire or explosion hazards; (g) temporary interruption of utilities and/or other conditions that may threaten the security or safety of Persons within the Property or the Common Area. Notwithstanding the foregoing, all Owners and Residents agree that such conditions on the Property or the Common Area resulting from construction activities shall not be deemed a nuisance and shall not cause Declarant and its agents to be deemed in violation of any provision of the Declaration.

4.08 Moisture. Improvements within a Structure may trap humidity created by general use and occupancy. As a result, condensation may appear on the interior portion of windows and glass surfaces and fogging of windows and glass surfaces may occur due to temperature disparities between the interior and exterior portions of the windows and glass. If left unattended and not properly maintained by Owners and Residents the condensation may increase resulting in staining, damage to surrounding seals, caulk, paint, wood work and sheetrock, and potentially, mildew and/or mold.

4.09 Mold and/or Mildew Mold and/or mildew can grow in any portion of a Structure and/or Dwelling that is exposed to elevated levels of moisture including, but not limited to, those portions of a Structure and/or Dwelling in which HVAC condenser units are located. Each Owner is advised to regularly inspect the Owner's Dwelling for the existence of mold, mildew and/or water intrusion (except when the water intrusion is part of the normal functioning of Improvements

h Owner is advised to regularly inspect the Owner's Dwelling for the existence of mold, mildew and/or water intrusion (except when the water intrusion is part of the normal functioning of Improvements and appliances such as showers, sinks, dishwashers and other similar appliances and Improvements) and/or damage.

4.10 Encroachments. Improvements may have been constructed on adjoining lands that encroach onto the Property. Declarant gives no representations or warranties as to property rights, if any created by any such encroachments.

4.11 Budgets. Any budgets of the Association provided by the Declarant are based on estimated expenses only without consideration for the effects of inflation and may increase or decrease significantly when the actual expenses become known.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 25 2022 - 2022000140592 09/16/2022 04:51 PM Page 31 of 88 4.12 Light and Views. The natural light available to and views from a Dwelling or Lot can change over time due to among other things, additional development and the removal or addition of landscaping. NATURAL LIGHT AND VIEWS ARE NOT PROTECTED.

4.13 Schools. No representations are being made regarding which schools may now or in the future serve the Property.

4.14 Suburban Environment. The Property is located in a suburban environment.

Sound and vibrations may be audible and felt from such things as sirens, whistles, horns, the playing of music, people speaking loudly, trash being picked up, deliveries being made, equipment being operated, dogs barking, construction activity, building and grounds maintenance being performed, automobiles, buses, trucks, ambulances, airplanes, and other generators of sound and

e, equipment being operated, dogs barking, construction activity, building and grounds maintenance being performed, automobiles, buses, trucks, ambulances, airplanes, and other generators of sound and vibrations typically found in an suburban area. In addition to sound and vibration, there may be odors and light in suburban areas.

4.15 Water Runoff. The Property may still be subject to erosion and/or flooding during unusually intense or prolonged periods of rain. In addition, water may pond on various portions of the Property or the Common Area having impervious surfaces such as rooftop terraces, patios, and balconies, as applicable.

4.16 official Photography of the Property. Declarant, Nomebuilders, and their licensees retain the right to obtain and use photography of the Property for publication and advertising purposes.

4.17 Changes to Street Names and Addresses. Declarant retains the right to change, in its sole discretion, the Property name and the street names and addresses in or within the Property including the street address of the Dwellings and/or Lots before or after conveyance to any third-party.

4.18 Plans and Land Use. Any advertising materials, brochures, renderings, drawings, and the like, furnished by Declarant to Owner which purport to depict the Improvements to be constructed on any Lot are merely approximations and do not necessarily reflect the actual as-built conditions of the same By acquiring an ownership interest in a Lot, each Owner acknowledges that the ownership, uses, platting, and development of land within, adjacent to, or near the Property may change over time, and from time to time, and that such a change may affect the value of Owner's Lot. Whether an Owner is consulted about a proposed change to real property within the

the Property may change over time, and from time to time, and that such a change may affect the value of Owner's Lot. Whether an Owner is consulted about a proposed change to real property within the vicinity of the Owners Louis a function of local government, and not a function of the Association.

Nothing in this Declaration or the other Governing Documents may be construed as a representation of any kind by the Association, Declarant or Homebuilders as to current or future uses - actual or permitted of any land that is adjacent to or near the Property, regardless of what the plat shows as potential uses of adjoining land. The Association, Declarant or Homebuilders cannot and do not guaranty views, volumes of traffic on streets around and through the Property, availability of schools or shopping, or any other aspect of the Property that is affected by the uses or conditions of adjacent or nearby land, water, or air.

4.19 Location of Utilities. Declarant makes no representation as to the location of mailboxes, utility boxes, street lights, fire hydrants or storm drain inlets or basins.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 26 2022 - 2022000140592 09/16/2022 04:51 PM Page 32 of 88 4.20 Wood. Natural wood has considerable variation due to its organic nature. There may be shades of white, red, black, or even green in areas. In addition, mineral streaks may also be visible. Grain pattern or texture will vary from consistent to completely irregular; wood from different areas of the same tree can also have variations in pattern or texture. It is these variations in wood that add to its aesthetic appeal. These variations in grain will in turn accept stain in

different areas of the same tree can also have variations in pattern or texture. It is these variations in wood that add to its aesthetic appeal. These variations in grain will in turn accept stain in varying amounts, which will show throughout the wood products from one door to the next, one panel to the next or one piece of wood to the next. Also, cabinet finishes (including gloss and/or matte finishes) will not be entirely consistent and some minor irregularities will be apparent.

Additionally, wood and wood products may be subject to warping, splitting, swelling and/or delamination, and surfaces may weather differently due to the type of wood, its location in or on a Dwelling, and other factors. Wood floors may require more maintenance than some man-made materials. Owners of Dwellings with wood floors should educate themselves about wood floor care.

4.21 Stone. Veins and colors of any marble, slate, or other stone if any, within a Dwelling, may vary drastically from one piece of stone to another. Each piece is different. Marble, granite, slate and other stone can also have chips and shattering veins which look like scratches.

The thickness of the joints between marble, granite, slate and other store and/or other materials against which they have been laid will vary and there will be irregularities in surface smoothness.

Marble and other stone finishes may be dangerously slippery and Declarant assumes no responsibility for injuries sustained as a result of exposure to or use of such materials. Periodic use of professionally approved and applied sealant is needed to ensure proper maintenance of the marble, granite, slate and other stone and it is the Owner's responsibility to properly maintain these

use of professionally approved and applied sealant is needed to ensure proper maintenance of the marble, granite, slate and other stone and it is the Owner's responsibility to properly maintain these materials. Marble, granite, and other stone surfaces may scratch, chip or stain easily. Such substances, as part of their desirable noise attenuating properties, may flex or move slightly in order to absorb impacts. Such movement may in turn cause grout to crack or loosen or cause some cracking in the stone flooring which may need to be repaired as part of normal home maintenance.

4.22 Chemicals. Each Structure and Dwelling will contain products that have water, powders, solids and industrial chemicals, which will be used in construction. The water, powders, solids and industrial chemicals wil and do contain mold, mildew, fungus, spores and chemicals that may cause allergic or other bodily reactions in certain individuals. Leaks, wet flooring and moisture will contribute to the growth of molds, mildew, fungus or spores. Declarant is not responsible for any illness or allergic reactions that a Person may experience as a result of mold, mildew, fungus or spores. It is the responsibility of the Owner to keep their Dwelling clean, dry, well ventilated and free of contamination.

4.23 Marketing. Declarant's use of a sales center and/or model homes or reference to other construction by Declarant is intended only to demonstrate the quality of finish detail, the basic floor plans and styles of the Dwellings available for purchase. A Structure and/or Dwelling may not conform to any model in any respect, or contain some or all of the amenities featured, such as furnishings and appliances. Likewise, any model of a Structure and/or Dwelling is intended

elling may not conform to any model in any respect, or contain some or all of the amenities featured, such as furnishings and appliances. Likewise, any model of a Structure and/or Dwelling is intended only to demonstrate approximate size and basic architectural features. The Structures and/or Dwellings, as completed, may not conform to the models displayed by Declarant. Declarant may also have shown prospective purchasers model homes, floor plans, sketches, drawings, and scale models of Structures and/or Dwellings. Owner understands and agrees that the promotional aids AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 27 2022 - 2022000140592 09/16/2022 04:51 PM Page 33 of 88 are conceptual, subject to change, for display purposes only, and may not be incorporated into the Structures and/or Dwellings.

5.01 ARTICLE 5 LAKE FOREST OWNERS ASSOCIATION, INC.

Organization. The Association is a nonprofit corporation created for the purposes, charged with the duties, and vested with the powers of a Texas non-profit corporation Neither the Certificate nor the Bylaws will for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration.

5.02 (a) Membership.

Mandatory Membership. Any person or entity, upon becoming an Owner, will automatically become a Member of the Association. Membership will be appurtenant to and will run with the ownership of the Lot that qualifies the Owner thereof for membership, and membership may not be severed from the ownership of the Lot, or in any way transferred, pledged, mortgaged or alienated, except together with the title to such Lot. Within thirty (30) days after acquiring legal title to a Lot, if requested by the Board, an Owner must provide the

sferred, pledged, mortgaged or alienated, except together with the title to such Lot. Within thirty (30) days after acquiring legal title to a Lot, if requested by the Board, an Owner must provide the Association with: (1) a copy of the recorded deed by which the Owner has acquired title to the Lot; (2) the Owner's address, email address, and phone number(s); (3) any Mortgagee's name and address; and (4) the name, phone number(s), and email address of any Resident other than the Owner.

Unofficia (b) Easement of Enjoyment - Common Area. Every Member will have a right and easement of enjoyment in and to all of the Common Area and an access easement by and through any Common Area, which easements will be appurtenant to and will pass with the title to such Member's Lot, subject to the following restrictions and reservations: (iii) (iv) the right of the Declarant, or the Declarant's designee, to cause such Improvements and features to be constructed upon the Common Area, as determined from time to time by the Declarant, in the Declarant's sole and absolute discretion; the right of the Association to suspend the Member's right to use the Common Area for any period during which any Assessment against such Member's Lot remains past due and for any period during which such member is in violation of any provision of the Restrictions; the right of Declarant (during the Development Period) and the Board thereafter, to dedicate or transfer all or any part of the Common Area to any public agency, authority or utility for any purpose; the right of Declarant (during the Development Period) and the Board thereafter, to grant easements or licenses over and across the Common Area; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 28

nt Period) and the Board thereafter, to grant easements or licenses over and across the Common Area; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 28 2022 - 2022000140592 09/16/2022 04:51 PM Page 34 of 88 (v) (vi) (vii) with the advance written approval of the Declarant during the Development Period, the right of the Association to borrow money for the purpose of improving the Common Area and, in furtherance thereof, mortgage the Common Area; the right of the Declarant, during the Development Period, and the Board, with the advance written approval of the Declarant during the Development Period, to promulgate Rules and Regulations regarding the use of the Common Area and any Improvements thereon; and the right of the Association to contract for services with any third parties on such terms as the Board may determine, except that during the Development Period, all such contracts must be approved in advance and in writing by the Declarant 5.03 Governance. As more specifically described in the Bylaws, the Board will consist of at least three (3) persons elected at the annual meeting of the Association, or at a special meeting called for such purpose. Notwithstanding the foregoing provision or any provision in this Declaration to the contrary, Declarant will have the sole right to appoint and remove all members of the Board until the tenth (10th) anniversary of the date this Declaration is Recorded. No later than the tenth (10th) anniversary of the date this Declaration is Recorded, or sooner as determined by Declarant, the Board must hold a meeting of Members of the Association for the purpose of electing one third (%) of the Board (the "Initial Member

s Declaration is Recorded, or sooner as determined by Declarant, the Board must hold a meeting of Members of the Association for the purpose of electing one third (%) of the Board (the "Initial Member Election Meeting"), which Board member(s) must be elected by Owners other than the Declarant. The Member elected at the Initial Member Election Meeting shall serve a one (1) year term. Declarant shall continue to have the sole right to appoint and remove two-thirds (2/3) of the Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period.

Unofficia 5.04 Voting Rights. The right to cast votes and the number of votes which may be cast for election of members to the Board (except as provided by Section 5.03) and on all other matters to be voted on by the Members will be calculated as set forth below.

(ii) (iii) Owner Votes. The Owner of each Lot will have one (1) vote for each Lot so owned.

Declarant Votes. In addition to the votes to which Declarant is entitled by reason of Section 5.04(i), for every one (1) vote outstanding in favor of any other person or entity, Declarant will have ten (10) additional votes until the expiration or termination of the Development Period.

Co-Owner Votes. When more than one person or entity owns a portion of the fee simple interest in any Lot, all such persons or entities will be Members. The vote or votes (or fraction thereof) for such Lot will be exercised by the person so designated in AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 29 2022 - 2022000140592 09/16/2022 04:51 PM Page 35 of 88 writing to the Secretary of the Association by the Owner of such Lot, and in no event will the vote for such Lot exceed the total

FOREST Page 29 2022 - 2022000140592 09/16/2022 04:51 PM Page 35 of 88 writing to the Secretary of the Association by the Owner of such Lot, and in no event will the vote for such Lot exceed the total votes to which such Lot is otherwise entitled under this Section 5.04.

5.05 Powers. The Association has the powers of a Texas nonprofit corporation. It further has the power to do and perform any and all acts that may be necessary or proper, for or incidental to, the exercise of any of the express powers granted to it by Applicable Law or this Declaration. Without in any way limiting the generality of the two preceding sentences, the Board, acting on behalf of the Association, has the following powers at all times: (a) Rules and Regulations, and Bylaws. To make, establish and promulgate, and in its discretion to amend from time to time, or repeal and re-enact such Rules and Regulations, policies, and Bylaws, as applicable, which are not in conflict with this Declaration, as it deems proper, covering any and all aspects of the Property or the Common Area (including the operation, maintenance, and preservation thereof) or the Association. Any Rules and Regulations, policies, Bylaws, and any amendments or modifications thereto proposed by the Board must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period.

(b) officia Insurance. To obtain and maintain in effect, policies of insurance that, in the opinion of the Board, are reasonably necessary of appropriate to carry out the Association's functions.

(c) Records. To keep books and records of the Association's affairs, and to make such books and records, together with current copies of the Restrictions available for inspection

ociation's functions.

(c) Records. To keep books and records of the Association's affairs, and to make such books and records, together with current copies of the Restrictions available for inspection by the Owners, Mortgagees, and insurers or guarantors of any Mortgage upon request during normal business hours.

(d) (e) Assessments. To levy and collect assessments, as provided in Article 6 below.

Right of Entry and Enforcement. To enter at any time without notice in an emergency (or in the case of a non-emergency, after twenty-four (24) hours written notice), without being liable to any Owner or Resident, upon any Lot and into any Dwelling thereon for the purpose of enforcing the Restrictions or for the purpose of maintaining or repairing any area, Improvement, or other facility to conform to the Restrictions. The expense incurred by the Association in connection with the entry upon any Lot and/or Dwelling, and the maintenance and repair work conducted thereon or therein, will be a personal obligation of the Owner of the Lot so entered, will be deemed an Individual Assessment against such Lot, will be secured by a lien upon such Lot, and will be enforced in the same manner and to the same extent as provided in Article 6 hereof for Assessments. The Association will have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce, by mandatory injunction or otherwise, or to restrain and enjoin, any breach or threatened breach of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Restrictions; provided,

ned breach of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Restrictions; provided, however, that the Board will never be authorized to expend any Association funds for the AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 30 2022 - 2022000140592 09/16/2022 04:51 PM Page 36 of 88 purpose of bringing suit against Declarant, or its successors or assigns. The Association may not alter or demolish any Improvements on any Lot other than Common Area in enforcing these Restrictions before a judicial order authorizing such action has been obtained by the Association, or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH SUCH OWNER AND RESIDENT WILL RELEASE AND HOLD HARMLESS THE ASSOCIATION, ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION'S ACTS OR ACTIVITIES UNDER THIS SECTION 5.05(e) (INCLUDING ANY COST, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING OUT OF THE ASSOCIATION'S NEGLIGENCE IN CONNECTION THERE WITH), EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. "GROSS NEGLIGENCE” DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE.

(f) Legal and Accounting Services To retain and pay for legal and accounting (g) Conveyances. To grant and convey to any person or entity the real property

ng Services To retain and pay for legal and accounting (g) Conveyances. To grant and convey to any person or entity the real property and/or other interest, including fee title leasehold estates, easements, rights-of-way or mortgages, out of, in, on, over, or under any Common Area for the purpose of constructing, erecting, operating or maintaining the following: Unofficia (i) Parks, parkways or other recreational facilities or structures; Roads, streets, sidewalks, signs, street lights, walks, driveways, trails and paths; Lines, cables, wires, conduits, pipelines or other devices for utility purposes; Sewers, water systems, storm water drainage systems, sprinkler systems and pipelines; and/or Any similar Improvements or facilities.

Nothing set forth above, however, will be construed to permit use or occupancy of any Improvement or other facility in a way that would violate applicable use and occupancy restrictions imposed by the Restrictions or by Applicable Law. In addition, until expiration or termination of the Development Period, any grant or conveyance under this Section 5.05(g) must be approved in advance and in writing by the Declarant.

(h) Manager. To retain and pay for the services of a person or firm (the "Manager"), which may include Declarant or any affiliate of Declarant, to manage and operate the Association, including its property, to the extent deemed advisable by the Board. Personnel AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 31 2022 - 2022000140592 09/16/2022 04:51 PM Page 37 of 88 may be employed directly by the Association or may be furnished by the Manager. To the

ANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 31 2022 - 2022000140592 09/16/2022 04:51 PM Page 37 of 88 may be employed directly by the Association or may be furnished by the Manager. To the extent permitted by Applicable Law, the Board may delegate any other duties, powers and functions to the Manager. In addition, the Board may adopt transfer fees, resale certificate fees or any other fees associated with the provision of management services to the Association or its Members. THE MEMBERS HEREBY RELEASE THE ASSOCIATION AND THE MEMBERS OF THE BOARD AND COMMITTEE MEMBERS FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER OR FUNCTION SO DELEGATED.

(i) Property Services. To pay for water, sewer, garbage removal, street lights, landscaping, gardening and all other utilities, services, repair and maintenance for any portion of the Property, Common Area, private or public recreational facilities, easements, roads roadways, rights-of-ways, signs, parks, parkways, median strips, sidewalks, paths, trails ponds, and lakes.

(j) Other Services and Properties. To obtain and pay for any other property, services, permits or other governmental approvals, and to pay any other taxes or assessments that the Association or the Board is required or permitted to scoure or to pay for pursuant to Applicable Law or under the terms of the Restrictions or as determined by the Board.

(k) fficial Construction on Common Area. To construct new Improvements or additions to any property owned, leased, or licensed by the Association, subject to the approval of the Board and the Declarant until expiration for termination of the Development Period.

(1) Contracts. To enter into Bulk Rate Contracts or other contracts or licenses with

subject to the approval of the Board and the Declarant until expiration for termination of the Development Period.

(1) Contracts. To enter into Bulk Rate Contracts or other contracts or licenses with Declarant or any third party on such terms and provisions as the Board will determine, to operate and maintain any Common Area or other property or to provide any service, including but not limited to cable, utility, or telecommunication services, or perform any function on behalf of Declarant, the Board, the Association, or the Members. During the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant.

(m) Property Ownership. To acquire, own and dispose of all manner of real and personal property, including habitat, whether by grant, lease, easement, gift or otherwise.

During the Development Period, all acquisitions and dispositions of the Association hereunder must be approved in advance and in writing by the Declarant.

(n) 5.04 above.

Allocation of Votes. To determine votes when permitted pursuant to Section Authority with Respect to the Restrictions. To do any act, thing or deed that is necessary or desirable, in the judgment of the Board, to implement, administer or enforce any of the Restrictions. Any decision by the Board to delay or defer the exercise of the power and authority granted by this Section 5.05(o) will not subsequently in any way limit, impair or affect ability of the Board to exercise such power and authority.

(p) Membership Privileges. To establish Rules and Regulations governing and limiting the use of the Common Area and any Improvements thereon.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 32 2022 - 2022000140592 09/16/2022 04:51 PM Page 38 of 88

the Common Area and any Improvements thereon.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 32 2022 - 2022000140592 09/16/2022 04:51 PM Page 38 of 88 5.06 Acceptance of Common Area. The Association may acquire, hold, and dispose of any interest in tangible and intangible personal property and real property. Declarant and its assignees reserve the right, from time to time and at any time, to designate by written and Recorded instrument portions of the property being held by the Declarant for the benefit of the Association.

Upon the filing of such designation, the portion of the property identified therein will be considered Common Area for the purpose of this Declaration. Declarant and its assignees may transfer or convey to the Association interests in real or personal property within or for the benefit of the Property or the general public, and the Association will accept such transfers and conveyances.

Such property may be improved or unimproved and may consist of fee simple title, easements, leases, licenses, or other real or personal property interests. In addition, Declarant may reserve from any such property easements for the benefit of the Declarant, any third party, and/or property not otherwise subject to the terms and provisions of this Declaration. Such property will be accepted by the Association and thereafter will be maintained as Common Area by the Association for the benefit of the Property and/or the general public subject to any restrictions set forth in the deed or other instrument transferring or assigning such property to the Association. Upon Declarant's written request, the Association will re-convey to Declarant any unimproved real

set forth in the deed or other instrument transferring or assigning such property to the Association. Upon Declarant's written request, the Association will re-convey to Declarant any unimproved real property that Declarant originally conveyed to the Association for no payment to the extent conveyed in error or needed to make minor adjustments in property lines as determined in the sole and absolute discretion of the Declarant.

5.07 Indemnification. To the fullest extent permitted by Applicable Law but without duplication (and subject to) any rights or benefits arising under the Certificate or Bylaws of the Association, the Association will indemnify any person who was, or is, a party, or is threatened to be made a party to any threatened pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that he or she is, or was, a director, officer, committee member, employee, servant or agent of the Association against expenses, including attorneys' fees, reasonably incurred by him in connection with such action, suit or proceeding if it is found and determined by the Board or a court of competent jurisdiction that he or she: (i) acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by settlement, or upon a plea of nolo contendere or its equivalent, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or,

t, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

5.08 Insurance. The Board may purchase and cause to be maintained, at the expense of the Association, insurance on behalf of any person who is acting as a director, officer, committee member, employee, servant or agent of the Association against any liability asserted against or incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Association would have the power to indemnify such person against such liability or otherwise.

5.09 Bulk Rate Contracts. Without limitation on the generality of the Association powers set out in Section 5.05 hereinabove (except that during the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant), the Association will AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 33 2022 - 2022000140592 09/16/2022 04:51 PM Page 39 of 88 have the power to enter into Bulk Rate Contracts at any time and from time to time. The Association may enter into Bulk Rate Contracts with any service providers chosen by the Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Declarant are owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on such terms and provisions as the Board may determine in its sole and absolute discretion. The

larant are owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on such terms and provisions as the Board may determine in its sole and absolute discretion. The Association may, at its option and election, add the charges payable by such Owner under such Bulk Rate Contract to the Assessments against such Owner's Lot. In this regard, it is agreed and understood that, if any Owner fails to pay any charges due by such Owner under the terms of any Bulk Rate Contract, then the Association will be entitled to collect such charges by exercising the same rights and remedies it would be entitled to exercise under this Declaration with respect to the failure by such Owner to pay Assessments, including without limitation the right to foreclose the lien against such Owner's Lot which is reserved under the terms and provisions of this Declaration In addition, in the event of nonpayment by any Owner of any charges due under any Bulk Rate Contract and after the lapse of at least twelve (12) days since such charges were due, the Association may, upon five (5) days' prior written notice to such Owner (which may run concurrently with such 12 day period), in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility service or other service provided at the cost of the Association and not paid for by such Owner (or the Resident of such Owner's Lot) directly to the applicable service or utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of termination, with the title "termination notice or similar language prominently displayed on the

ce will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of termination, with the title "termination notice or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner (or the Resident of such Owner's Lot) can make arrangements for payment of the bill and for re-connection or reinstitution of service. No utility or cable television service will be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services.

5.10 Community Systems. The Association is specifically authorized to provide, or to enter into contracts to provide Community Systems. Any such contracts may provide for installation, operation, management, maintenance, and upgrades or modifications to the Community Systems as the Board determines appropriate. Each Owner acknowledges that interruptions in Community Systems and services will occur from time to time. Declarant and the Association, or any of their respective successors or assigns shall not be liable for, and no Community System or service user shall be entitled to refund, rebate, discount, or offset in applicable fees for, any interruption in Community Systems and services, regardless of whether or not such interruption is caused by reasons within the service provider's control. In addition, until expiration or termination of the Development Period, any contracts entered pursuant to this Section 5.10 must be approved in advance and in writing by the Declarant.

5.11 Declarant's Right to Contribute to Revenues of the Association. Declarant shall have the right, but not the obligation, in its sole discretion and from time to time, to contribute to

e Declarant.

5.11 Declarant's Right to Contribute to Revenues of the Association. Declarant shall have the right, but not the obligation, in its sole discretion and from time to time, to contribute to the revenues of the Association. At the option of Declarant, such contribution may be reflected on the books and records of the Association as a loan, in which event it shall be repaid by the Association to Declarant, at the discretion of Declarant. If treated as a loan, the contribution shall accrue interest, compounded monthly, from the date it is made until the date of its repayment, at the short term Applicable Federal Rate ("AFR"), as published by the Internal Revenue Service, and adjusted each month to reflect the AFR for such month.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 34 2022 - 2022000140592 09/16/2022 04:51 PM Page 40 of 88 5.12 Protection of Declarant's Interests. Despite any assumption of control of the Board by Owners other than Declarant, until the expiration or termination of the Development Period, the Board is prohibited from taking any action which would discriminate against Declarant, or which would be detrimental to the sale of Lots owned by Declarant. Declarant shall be entitled to determine, in its sole and absolute discretion, whether any such action discriminates or is detrimental to Declarant. The Board will be required to continue the same level and quality of maintenance, operations and services as that provided immediately prior to assumption of control of the Board by Owners other than Declarant until the expiration or termination of the Development Period.

5.13 Administration of Common Area. The administration of the Common Area by

ption of control of the Board by Owners other than Declarant until the expiration or termination of the Development Period.

5.13 Administration of Common Area. The administration of the Common Area by the Association shall be in accordance with the provisions of Applicable Law and the Restrictions and of any other agreements, documents, amendments or supplements to the foregoing which may be duly adopted or subsequently required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) or by any governmental or quasi-governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area. Declarant and/or its assignees may construct and maintain upon portions of the Common Area such facilities and may conduct such activities which, in Declarant's sole opinion, may be required, convenient, or incidental to the construction or sale of Improvements on the Property, including, but not limited to, business offices, signs, model homes, and sales offices. Declarant and its assignees shall have an easement over and across the Common Area for access and shall have the right to use such facilities and to conduct such activities at no charge Unofficial 5.14 City's Right to Maintain Common Areas. As set forth in the Plat, the City of McKinney shall have a right of access over the Common Areas to reasonably abate any nuisances located thereon, and may file a claim of lien against said Common Area in the Official Public Records of Collin County for the reasonable costs incurred by the City of McKinney in performing

nuisances located thereon, and may file a claim of lien against said Common Area in the Official Public Records of Collin County for the reasonable costs incurred by the City of McKinney in performing such abatement. The Association agrees to indemnify and hold the City of McKinney harmless from any and all costs expenses, suits, demands, liabilities, damages, or otherwise, including attorney's fees and costs of suit, in connection with the City of McKinney's maintenance of the Common Areas pursuant to this Section 5.14.

6.01 Assessments.

ARTICLE 6 COVENANT FOR ASSESSMENTS Established by Board. Assessments established by the Board pursuant to the provisions of this Article 6 will be levied against each Lot in amounts determined pursuant to Section 6.07 below.

(b) Personal Obligation; Lien. Each Assessment, together with such interest thereon and costs of collection as hereinafter provided, will be the personal obligation of the Owner of the Lot against which the Assessment is levied and will be secured by a lien hereby granted and conveyed by Declarant to the Association against each such Lot and all Improvements thereon.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 35 2022 - 2022000140592 09/16/2022 04:51 PM Page 41 of 88 The Association may enforce payment of such Assessments in accordance with the provisions of this Article.

(c) Declarant Subsidy. Declarant may, but is not obligated to, reduce Assessments which would otherwise be levied against Lots for any fiscal year by the payment of a subsidy to the Association. Any subsidy paid to the Association by Declarant may be treated as a contribution or a loan, in Declarant's sole and absolute discretion. The payment of a subsidy in

t of a subsidy to the Association. Any subsidy paid to the Association by Declarant may be treated as a contribution or a loan, in Declarant's sole and absolute discretion. The payment of a subsidy in any given year will not obligate Declarant to continue payment of a subsidy to the Association in future years.

(d) Budget. Prior to the beginning of each fiscal year, the Board will prepare a budget for the purpose of determining amounts sufficient to pay the estimated net expenses the Association which sets forth: (i) an estimate of the expenses to be incurred by the Association during such year in performing its functions and exercising its powers under the Restrictions, including, but not limited to, the cost of all management, repair and maintenance, the cost of providing street and other lighting, the cost of administering and enforcing the Restrictions, and (ii) an estimate the amount needed to maintain a reasonable provision for contingencies and an appropriate replacement reserve, giving due consideration to any expected income and any surplus from the prior year's fund. Assessments sufficient to pay such estimated net expenses will then be levied at the level of Assessments set by the Board in its sole and absolute discretion, and the Board's determination will be final and binding so long as it is made in good faith. If the sums collected prove inadequate for any reason, including nonpayment of any Assessment, the Association may at any time, and from time to time, levy further Assessments in the same manner. An such Assessments will be due and payable to the Association as established by and in a manner as the Board may designate in its sole and absolute discretion.

6.02 Maintenance Fund. The Board may establish a maintenance fund into which will

e to the Association as established by and in a manner as the Board may designate in its sole and absolute discretion.

6.02 Maintenance Fund. The Board may establish a maintenance fund into which will be deposited all monies paid to the Association and from which disbursements will be made in performing the functions of the Association under this Declaration. The funds of the Association may be used for any purpose authorized by the Restrictions and the Applicable Law.

6.03 Monthly Assessments. The Association shall possess the right, power, authority, and obligation to establish a regular assessment ("Monthly Assessment") sufficient in the judgment of the Board to pay all Common Area expenses and all Townhome Common Expenses when due. The Association shall establish (i) a regular Monthly Assessment for the Owners of Detached Single-Family Homes and (ii) a regular Monthly Assessment for the Owners of the Townhomes Such Monthly Assessments so established for all Common Area expenses shall be payable by all the Owners, and such Monthly Assessments so established for the Townhome Common Expenses shall be payable only by the Owners of Townhomes. Monthly Assessments are due and payable on the first day of each calendar month. The Monthly Assessments shall be applied as determined by the Board for the payment of charges or expenses for which the Association is responsible, including, without limitation, charges or expenses relating to maintenance and repair of elements of the Property not the responsibility of the Owners, care of the Common Areas, Areas of Common Responsibility, casualty, public liability and other insurance coverages required or permitted to be maintained by the Association, governmental

f the Owners, care of the Common Areas, Areas of Common Responsibility, casualty, public liability and other insurance coverages required or permitted to be maintained by the Association, governmental impositions not separately levied and assessed, utilities relating to the Common Areas or not AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 36 2022 - 2022000140592 09/16/2022 04:51 PM Page 42 of 88 separately metered. Professional services, such as management, accounting and legal, and such other costs and expenses as may reasonably relate to the proper maintenance, care, operation and management of the Property, and the administration of the Association established hereby, including an adequate reserve fund for the periodic maintenance, repair, and replacement of the Common Areas and Areas of Common Responsibility. No consent or approval of the Owners shall be required for the establishment of the Monthly Assessments. Collection of Monthly Assessments, as to each Owner, shall commence upon the acquisition by such Owner of title to such Owner's Dwelling. The Owners of Detached Single-Family Homes shall not be assessed for any of the Areas of Common Responsibility. The Townhome Common Expenses shall be assessed solely to the Owners of Townhomes.

6.04 Special Assessments. In addition to the Monthly Assessments provided for above the Board may levy special assessments (the "Special Assessment") whenever in the Board's opinion such Special Assessments are necessary to enable the Board to carry out the functions of the Association under the Restrictions. The amount of any Special Assessments will be at the reasonable discretion of the Board. In addition to the Special Assessments authorized above, the

nctions of the Association under the Restrictions. The amount of any Special Assessments will be at the reasonable discretion of the Board. In addition to the Special Assessments authorized above, the Association may, in any fiscal year, levy a Special Assessment applicable to that fiscal year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area. Notwithstanding anything to the contrary herein, Owners of Detached Single Family Homes shall not be required to pay any Special Assessments related to Townhomes Common Expenses, and such Special Assessments relating to Townhome Common Expense shall be assessed solely against the Owners of Townhomes.

6.05 Individual Assessments In addition to any other Assessments, the Board may levy an individual assessment (the "Individual Assessment”) against an Owner and the Owner's Lot. Individual Assessments may include but are not limited to: interest, late charges, and collection costs on delinquent Assessments; reimbursement for costs incurred in bringing an Owner or the Owner's Lot into compliance with the Declaration; fines for violations of the Restrictions; transfer-related fees and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles, reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner's guests, invitees or Residents of the Owner's Lot; common expenses that benefit fewer than all of the Lots, which may be assessed according to benefit received; fees or charges levied against the Association on a per-Lot basis; and "pass through" expenses for services to Lots provided through the Association and which are equitably

ording to benefit received; fees or charges levied against the Association on a per-Lot basis; and "pass through" expenses for services to Lots provided through the Association and which are equitably paid by each Lot according to the benefit received.

6.06 Working Capital Assessment. Each Owner (other than Declarant and Homebuilders) of a Lot will pay a one-time working capital assessment to the Association in such amount as may be determined by the Board, from time to time, in its sole and absolute discretion.

Such working capital assessment need not be uniform among all Lots, and the Board is expressly authorized to levy working capital assessments of varying amounts depending on the size, use, and general character of the Lots then being made subject to such levy.

Notwithstanding the foregoing provision, the following transfers will not be subject to the working capital assessment: (i) foreclosure of a deed of trust lien, tax lien, or the Association's assessment lien; (ii) transfer to, from, or by the Association; (iii) voluntary transfer by an Owner AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 37 2022 - 2022000140592 09/16/2022 04:51 PM Page 43 of 88 to one or more co-owners, or to the Owner's spouse, child, or parent. In the event of any dispute regarding the application of the working capital assessment to a particular Owner, the Declarant's during the Development Period, and thereafter the Board's, determination regarding the application of the exception will be binding and conclusive without regard to any contrary interpretation of this Section 6.06. The working capital assessment will be in addition to, not in lieu of, any other Assessments levied in accordance with this Article 6 and will not be considered

ry interpretation of this Section 6.06. The working capital assessment will be in addition to, not in lieu of, any other Assessments levied in accordance with this Article 6 and will not be considered an advance payment of such Assessments. The working capital assessment hereunder will be due and payable by the transferee to the Association immediately upon each transfer of title to the Lot, including upon transfer of title from one Owner of such Lot to any subsequent purchaser or transferee thereof. The Declarant during the Development Period, and thereafter the Board, will have the power to waive the payment of any working capital assessment attributable to a Lou (or all Lots) by the Recordation of a waiver notice, which waiver may be temporary or permanent.

6.07 (a) Exemptions from Assessments.

Assessment Exemption. Notwithstanding anything in this Declaration to the contrary, no Assessments shall be levied upon Lots owned by Declarant without Dwellings.

Homebuilders shall be required to pay Assessments at such time that the Declarant determines, in the Declarant's sole and absolute discretion that the Association shall assume the maintenance responsibilities over the Structure Dwelling or Lot.

Inofficia (b) Other Exemptions. Declarant may, in its sole discretion, elect to: (i) exempt any un-platted or unimproved portion of the Property or any Lot from any Assessments levied or charged pursuant to this Article 6; or (ii) delay the levy of Assessments against any un-platted, unimproved or improved portion of the Property. Declarant or the Board may also exempt any portion of the Property which is dedicated and accepted by public authority from Assessments.

6.08 Late Charges. If any Assessment is not paid by the due date applicable thereto,

d may also exempt any portion of the Property which is dedicated and accepted by public authority from Assessments.

6.08 Late Charges. If any Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Board, at the Board's election at any time and from time to time, to pay a late charge in such amount as the Board may designate, and the late charge (and any reasonable handling costs) will be levied as an Individual Assessment against the Lot owned by such Owner, collectible in the manner as provided for collection of Assessments, including foreclosure of the lien against such Lot; provided, however, such charge will never exceed the maximum charge permitted under Applicable Law.

6.09 Owner's Personal Obligation; Interest. Assessments levied as provided for herein will be the personal and individual debt of the Owner of the Lot against which are levied such Assessments. No Owner may exempt himself from liability for such Assessments. In the event of default in the payment of any such Assessment, the Owner of the Lot will be obligated to pay interest on the amount of the Assessment at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date therefor (or if there is no such highest rate, then at the rate of one and one half percent (1 1/2%) per month), together with all costs and expenses of collection, including reasonable attorney's fees. Such amounts will be levied as an Individual Assessment against the Lot owned by such Owner.

6.10 Assessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article 6 is, together with late charges as provided in Section 6.09 and AMENDED AND RESTATED DECLARATION

sessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article 6 is, together with late charges as provided in Section 6.09 and AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 38 2022 - 2022000140592 09/16/2022 04:51 PM Page 44 of 88 interest as provided in Section 6.10 hereof and all costs of collection, including attorney's fees as herein provided, secured by the continuing Assessment lien granted to the Association pursuant to Section 6.01(b) above, and will bind each Lot in the hands of the Owner thereof, and such Owner's heirs, devisees, personal representatives, successors or assigns. The aforesaid lien will be superior to all other liens and charges against such Lot, except only for: (i) tax liens and governmental assessment liens; (ii) all sums secured by a Recorded first mortgage lien or Recorded first deed of trust lien of record, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question; and (iii) home equity loans or home equity lines of credit which are secured by a Recorded second mortgage lien or Recorded second deed of trust lien of record; provided that, in the case of subparagraphs (ii) and (iii) above, such Mortgage was Recorded before the delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such subordination may be signed by an authorized officer, agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment lien granted hereunder, prepare a written notice of

agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment lien granted hereunder, prepare a written notice of Assessment lien setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot covered by such lien and a description of the Lot. Such notice may be signed by one of the authorized officers, agents, or attorneys of the Association and will be Recorded Each Owner, by accepting a deed or ownership interest to a Lot subject to this Declaration, will be deemed conclusively to have granted a power of sale the Association to secure and enforce the Assessment lien granted hereunder. The Assessment liens and rights to foreclosure thereof will be in addition to and not in substitution of any other rights and remedies the Association may have by law and under this Declaration, including the rights of the Association to institute suit against such Owner personally obligated to pay the Assessment and/or for foreclosure of the aforesaid lien. In any foreclosure proceeding, such Owner will be required to pay the costs, expenses and reasonable attorney's fees incurred. The Association will have the power to bid (in cash or by credit against the amount secured by the lien on the property at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same. Upon the written request of any Mortgagee, the Association will report to said Mortgagee any unpaid Assessments remaining unpaid for longer than sixty (60) days after the same are due. The lien hereunder will not be affected by the sale or transfer of any Lot; except, however, that in the event of foreclosure

s remaining unpaid for longer than sixty (60) days after the same are due. The lien hereunder will not be affected by the sale or transfer of any Lot; except, however, that in the event of foreclosure of any lien superior to the Assessment lien, the lien for any Assessments that were due and payable before the foreclosure sale will be extinguished, provided that past-due Assessments will be paid out of the proceeds of such foreclosure sale only to the extent that funds are available after the satisfaction of the indebtedness secured by the Mortgage. The provisions of the preceding sentence will not however, relieve any subsequent Owner (including any Mortgagee or other purchaser at a foreclosure sale) from paying Assessments becoming due and payable after the foreclosure sale.

Upon payment of all sums secured by a lien of the type described in this Section 6.10, the Association will upon the request of the Owner, and at such Owner's cost, execute a release of lien relating to any y lien for which written notice has been Recorded as provided above, except in circumstances in which the Association has already foreclosed such lien. Such release will be signed by an authorized officer, agent, or attorney of the Association. In addition to the lien hereby retained, in the event of nonpayment by any Owner of any Assessment and after the lapse of at least twelve (12) days since such payment was due, the Association may, upon five (5) days' prior written notice (which may run concurrently with such twelve (12) day period) to such Owner, in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 39

n addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 39 2022 - 2022000140592 09/16/2022 04:51 PM Page 45 of 88 manner as the Board deems appropriate, any utility or cable service provided through the Association and not paid for directly by an Owner or Resident to the utility provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of disconnection, with the title “termination notice” or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner or the Resident of the Owner's Lot can make arrangements for payment of the bill and for reconnection of service. Utility or cable service will not be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. Except as otherwise provided by Applicable Law, the sale or transfer of a Lot will not relieve the Owner of such Lot or such Owner's transferee from liability for any Assessments thereafter becoming due or from the lien associated therewith. If an Owner conveys its Lot and on the date of such conveyance Assessments against the Lot remain unpaid, or said Owner owes other sums or fees under this Declaration to the Association, the Owner will pay such amounts to the Association out of the sales price of the Lot, and such sums will be paid in preference to any other charges against the Lot other than liens superior to the Assessment lien and charges in favor of the State of Texas or a

e sales price of the Lot, and such sums will be paid in preference to any other charges against the Lot other than liens superior to the Assessment lien and charges in favor of the State of Texas or a political subdivision thereof for taxes on the Lot which are due and unpaid. The Owner conveying such Lot will remain personally liable for all such sums until the same are fully paid, regardless of whether the transferee of the Lot also assumes the obligation to pay such amounts. The Board may adopt an administrative transfer fee to cover the expenses associated with updating the Association's records upon the transfer of a Lot to a third party, provided, however, that no transfer fee will be due upon the transfer of a Lot from Declarant to a third party.

6.11 Yes, the Association can foreclose on your home!

If you fail to pay assessments to the Association, you may lose title to your home if the Association forecloses its assessment lien.

Inoffici Exempt Property. The following areas will be exempt from the Assessments provided for in this Article: (a) (b) 6.12 All area dedicated and accepted by a public authority; The Common Area; and Any portion of the Property owned by Declarant.

Fines and Damages Assessment. The Board may assess fines against an Owner for violations of the Restrictions which have been committed by an Owner, a Resident, or the Owner or Residents guests, agents or invitees. Any fine and/or charge for damage levied in accordance with this Section 6.12 will be considered an Individual Assessment pursuant to this Declaration. The Board may assess damage charges against an Owner for pecuniary loss to the Association from property damage or destruction of Common Area or any facilities caused by the

suant to this Declaration. The Board may assess damage charges against an Owner for pecuniary loss to the Association from property damage or destruction of Common Area or any facilities caused by the Owner, Resident, or their guests, agents, or invitees. The Manager will have authority to send notices to alleged violators, informing them of their violations and asking them to comply with the Rules and Regulations and/or informing them of potential or probable fines or damage assessments. The payment of each fine and/or damage charge levied by the Board against the Owner of a Lot is, together with interest as provided in Section 6.09 hereof and all costs of collection, including attorney's fees as herein provided, secured by the lien granted to the AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 40 2022 - 2022000140592 09/16/2022 04:51 PM Page 46 of 88 Association pursuant to Section 6.01(b) of this Declaration. The Board may from time to time adopt an enforcement policy and schedule of fines.

ARTICLE 7 MAINTENANCE AND REPAIR OBLIGATIONS 7.01 The Association is not responsible for the maintenance, repair or replacement of any aspect or component of Detached Single Family Homes Overview. Generally, the Association maintains the Common Area and the Owner maintains his Lot and the Structure and Dwelling located thereon. If any Owner fails to maintain his Lot and the Structure and Dwelling located thereon, the Association may perform the work at the Owner's expense. This Declaration assigns portions of the Structures, Dwelings and Lots to the "Area of Common Responsibility", as defined and described below. The Area of Common Responsibility is maintained by the Association and not the Owner. On the date of this

res, Dwelings and Lots to the "Area of Common Responsibility", as defined and described below. The Area of Common Responsibility is maintained by the Association and not the Owner. On the date of this Declaration, the initial designation of components of Structures, Dwellings, and Lots included within the Area of Common Responsibility is attached hereto as Exiribit “B”.

7.02 Association Maintains.

The Association maintenance obligations will be discharged when and how the Board deems appropriate Unless otherwise provided in this Declaration, the Association maintains, repairs and replaces, as a common expense, the portions of the Property or the Common Area listed below, regardless of whether the portions are on an Owner's Lot: (i) the Common Area; the Area of Common Responsibility; Uno (v) any real and personal property owned by the Association not otherwise designated as a Common Area; any property adjacent to the Property or the Common Area if maintenance of same is deemed to be in the best interests of the Association, and if not prohibited by the owner or operator of said property; and any area, item, easement or service the maintenance of which is assigned to the Association by this Declaration or in accordance with any recorded plat of the Property.

The Association may be relieved of all or any portion of its maintenance responsibilities herein to the extent that: (i) such maintenance responsibility is assigned to an Owner under this Declaration; (ii) such maintenance responsibility is otherwise assumed by or assigned to an Owner; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 41 2022 - 2022000140592 09/16/2022 04:51 PM Page 47 of 88

otherwise assumed by or assigned to an Owner; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 41 2022 - 2022000140592 09/16/2022 04:51 PM Page 47 of 88 or (iii) such property is dedicated to any local, state or federal government or quasi-governmental entity; provided, however, that in connection with such assumption, assignment or dedication, the Association may reserve or assume the right or obligation to continue to perform all or any portion of its maintenance responsibilities, if the Board determines that such maintenance is necessary or desirable.

Subject to the maintenance responsibilities herein provided, any maintenance or repair performed on or to the Common Area by an Owner or Resident that is the responsibility of the Association hereunder shall be performed at the sole expense of such Owner or Resident and the Owner and Resident shall not be entitled to reimbursement from the Association or an offset to Monthly Assessments even if the Association accepts the maintenance or repair.

The Association shall not be liable for injury or damage to person or property caused by the elements or by the Owner or Resident of any Lot or any other person or resulting from any utility, rain, snow or ice which may leak or flow from any portion of the Common Area or from any pipe, drain, conduit, appliance or equipment which the Association is responsible to maintain hereunder, except for injuries or damages arising after the Owner or Resident of a Lot has put the Association on written notice of a specific leak or flow from any portion of the Common Area and the Association has failed to exercise due care to correct the leak or flow within a reasonable time

he Association on written notice of a specific leak or flow from any portion of the Common Area and the Association has failed to exercise due care to correct the leak or flow within a reasonable time thereafter. The Association shall not be liable to any owner or Resident of any Lot for loss or damage, by theft or otherwise, of any property which may be stored in or upon any of the Common Area or any Lot. The Association shall not be liable to any Owner or Resident, for any damage or injury caused in whole or in part by the Association's failure to discharge its responsibilities under this Section where such damage or injury is not a foreseeable, natural result of the Association's failure to discharge its responsibilities. No diminution or abatement of Assessments shall be claimed or allowed by reason of any alleged failure of the Association to take some action or perform some function required to be taken or performed by the Association under this Declaration or for inconvenience or discomfort arising from the making of repairs or Improvements which are the responsibility of the Association or from any action taken by the Association to comply with any law ordinance or with any order or directive of any municipal or other governmental authority.

7.03 Area of Common Responsibility Applicable to Townhomes Only. The Association, acting through its members only, has the right but not the duty to designate, from time to time, portions of a Structure, Dwelling, and Lot as an Area of Common Responsibility to be treated, maintained, repaired, and/or replaced by the Association as a Townhome Common Expense. A designation applies to every Lot having the identified feature. The cost of maintaining

sibility to be treated, maintained, repaired, and/or replaced by the Association as a Townhome Common Expense. A designation applies to every Lot having the identified feature. The cost of maintaining the Area of Common Responsibility is added to the annual budget and assessed uniformly against all Townhome Lots as a Monthly Assessment, unless, after expiration of the Development Period, the Owners of at least a Majority of the Lots decide to assess the costs as Individual Assessments.

(a) Easement. The Association is hereby granted an easement over and across each Structure, Lot and Dwelling to the extent reasonably necessary or convenient for the Association or its designee to maintain, repair and/or replace the Area of Common Responsibility. Unless otherwise agreed to by the Owner of the Lot to be accessed or an emergency, access to the Area of Common Responsibility is limited to Monday through Friday, between the hours of 7 a.m. until 6 p.m., and then only in conjunction with actual maintenance activities. If the Association damages any Improvements located within a Structure, Lot or AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 42 2022 - 2022000140592 09/16/2022 04:51 PM Page 48 of 88 Dwelling in exercising the easement granted hereunder, the Association will be required to restore such Improvements to the condition which existed prior to any such damage, at the Association's expense, within a reasonable period of time not to exceed thirty (30) days after the date the Association is notified in writing of the damage by the Owner of the damaged Improvements.

(b) Change in Designation. The Association may, from time to time, include additional components of Structures, Lots and Dwellings within the Area of Common

e by the Owner of the damaged Improvements.

(b) Change in Designation. The Association may, from time to time, include additional components of Structures, Lots and Dwellings within the Area of Common Responsibility; however, unless otherwise approved by the Declarant during the Development Period, in no event may the Association at any time remove from the Area of Common Responsibility components of Structures, Lots or Dwellings previously designated as an Area of Common Responsibility under this Declaration. During the Development Period, any addition to the Area of Common Responsibility must also be approved by the Declarant After expiration or termination of the Development Period, any modification must be approved by a majority of the Townhome Owners. During the Development Period the Area of Common Responsibility may be modified or amended by the Declarant, acting alone. Any modification or amendment to the Area of Common Responsibility must be recorded in the Official Public Records of Collin County, Texas.

7.04 Inspection Obligations.

fici (a) Contract for Services. In addition to the Association's general maintenance obligations set forth in this Declaration, the Association shall, at all times, contract with (subject to the limitations otherwise set forth in this Declaration) otherwise retain the services of independent, qualified, licensed individuals or entities to provide the Association with inspection services for the Area of Common Responsibility.

(b) Schedule of Inspections. Such inspections shall take place at least once every three (3) years.

The inspectors shall provide written reports of their inspections to the Association promptly following completion thereof. The written reports shall identify any

at least once every three (3) years.

The inspectors shall provide written reports of their inspections to the Association promptly following completion thereof. The written reports shall identify any items of maintenance or repair that either require current action by the Association or will need further review and analysis. The Board shall report the contents of such written reports to the Members of the Association at the next meeting of the Members following receipt of such written reports or as soon thereafter as reasonably practicable and shall include such written reports in the minutes of the Association. Subject to the provisions of the Declaration below, the Board shall promptly cause all matters identified as requiring attention to be maintained, repaired, or otherwise pursued in accordance with prudent business practices and the recommendations of the inspectors.

Notice to Declarant. During the Development Period, the Association shall, if requested by Declarant, deliver to Declarant ten (10) days advance written notice of all such inspections (and an opportunity to be present during such inspection, personally or through an agent) and shall provide Declarant (or its designee) with a copy of all written reports prepared by the inspectors.

7.05 Owner Responsibility. This Declaration contemplates that the Association will maintain some significant components of the Structures, Dwellings and Lots. Every Owner is AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 43 2022 - 2022000140592 09/16/2022 04:51 PM Page 49 of 88 responsible for the maintenance, repair and replacement of all Improvements located on such Owner's Lot, unless such Improvements are expressly maintained by the Association as an Area

M Page 49 of 88 responsible for the maintenance, repair and replacement of all Improvements located on such Owner's Lot, unless such Improvements are expressly maintained by the Association as an Area of Common Responsibility. Every Owner has the following responsibilities and obligations for the maintenance, repair, and replacement of their Lot: (i) (ii) (iii) (iv) to maintain, repair, and replace the Structure and Dwelling located on the Owner's Lot and any Improvements which exclusively serve such Owner's Lot, except for the Area of Common Responsibility; to not do any work or fail to do any work which, in the reasonable opinion of the Board, would materially jeopardize the soundness and safety of the Property, reduce the value thereof, or impair any easement or real property right thereto; to be responsible for his own willful or negligent acts and those of his or the Resident's family, guests, agents, employees, or contractors when those acts necessitate maintenance, repair, or replacement of Common Area or the property of another Owner, or any component of the Property for which the Association has maintenance and or insurance responsibility; to perform his or her responsibilities in such manner so as not to unreasonably disturb other Owners and Residents; Unofficial (v) to promptly report to the Association or its agent any defect or need for repairs for which the Association is responsible; to pay for the cost of repairing, replacing or cleaning up any item that is the responsibility of the Owner but which responsibility such Owner fails or refuses to discharge (which the Association shall have the right, but not the obligation, to do), or to pay for the cost of repairing, replacing, or cleaning up any item which,

ity such Owner fails or refuses to discharge (which the Association shall have the right, but not the obligation, to do), or to pay for the cost of repairing, replacing, or cleaning up any item which, although the responsibility of the Association, is necessitated by reason of the willful or negligent act of the Owner, his or her family, tenants or guests, with the cost thereof to be added to and to become part of the Owner's next chargeable Assessment.

SEE EXHIBIT "B" IF IT IS NOT AN AREA OF COMMON RESPONSIBILITY, THEN IT IS THE OWNER'S INDIVIDUAL RESPONSIBILITY.

7.06 Yard Maintenance. As set forth on the Designation of Area of Common Responsibility and Maintenance Chart, attached as Exhibit “B”, each Owner is obligated to maintain those yard areas within his or her Lot which are bounded or enclosed by a fence. The Association is obligated to maintain, as an Area of Common Responsibility, all yard areas within a Lot, other than those yard areas enclosed or bounded by a fence. Shrubs and trees may not be AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 44 2022 - 2022000140592 09/16/2022 04:51 PM Page 50 of 88 planted, and no modifications may be made to a yard, without the prior written approval of the ACC. Specifically, the Owner must: maintain an attractive ground cover or lawn on all yards visible from a street or Common Area; (i) (ii) mow the lawns and grounds at regular intervals; (iii) (iv) (v) prevent lawn weeds or grass from exceeding six (6) inches in height; not plant vegetable gardens that are visible from a street, and maintain an attractive appearance for shrubs and trees visible from a street.

Licial 7.07 Disputes. If a dispute arises regarding the allocation of maintenance

dens that are visible from a street, and maintain an attractive appearance for shrubs and trees visible from a street.

Licial 7.07 Disputes. If a dispute arises regarding the allocation of maintenance responsibilities by this Declaration, the dispute will be resolved by the Board, who shall delegate such maintenance responsibility to either the Association or the individual Owner(s), as determined by the Board in its sole and absolute discretion.

8.01 ARTICLE & INSURANCE Type of Insurance. The Association shall be entitled to obtain and maintain such insurance coverages as the Board deems necessary or appropriate. The premiums for insurance coverage maintained by the Association shall be designated by the Board as either a Common Expense or a Townhome Common Expense based on whether the protection to be provided by the insurance coverage inures to the benefit of all Owners or to Owners of the Townhomes, respectively. The Association may obtain the following, in its discretion: (a) As a Common Expense, a commercial general liability insurance policy covering all Common Areas. Such coverage may be for all occurrences commonly insured against and shall include without limitation, legal liability of the insureds for property damage, bodily injuries, medical payments, and deaths of persons arising out of or in connection with the use, ownership, or maintenance of the Common Areas.

(b) Insurance policies may provide that (i) the coverage of the policy is not prejudiced by any act or omission of an individual Owner to the extent that such act or omission is not within the collective control of all Owners of the Townhomes; such policy is primary insurance if at the time of a loss under the policy any Townhome Owner has other insurance

h act or omission is not within the collective control of all Owners of the Townhomes; such policy is primary insurance if at the time of a loss under the policy any Townhome Owner has other insurance covering the same property covered by the policy; and (ii) no action or omission by any Owner, unless validly exercised on behalf of the Association, will void the policy or be a condition to recovery under the policy.

(c) The Board shall have the express authority, on behalf of the Association, to name as insured an authorized representative, including any trustee (or successor thereto) with whom the Association has entered into any insurance trust agreement, which authorized representative AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 45 2022 - 2022000140592 09/16/2022 04:51 PM Page 51 of 88 shall have exclusive authority to negotiate losses under any policy providing the property or liability insurance required to be provided herein.

(d) As a Townhome Common Expense, a "master" or "blanket” policy of property insurance insuring against all risks of direct physical loss commonly insured against including fire and extended coverage, covering all Townhomes and Area of Common Responsibility.

Such "blanket" or "master" policy may insure, for one hundred percent (100%) of the full replacement value of the items covered., against loss or damage by fire or other perils normally covered by the standard extended coverage endorsement available in the State of Texas and against all other perils customarily covered with respect to Association projects which are similar to the Townhomes in construction, location, and use, including all perils normally covered by the standard "all risk” endorsement.

marily covered with respect to Association projects which are similar to the Townhomes in construction, location, and use, including all perils normally covered by the standard "all risk” endorsement.

8.02 Townhome Insurance. An Owner of a Townhome stall be solely responsible for obtaining and maintaining at such Owner's sole cost and expense, all general fiability insurance and all insurance covering all alterations, additions, betterments and improvements to such Owner's Townhome and all other personal property located at the Owner's Townhome or constituting a part thereof. Nothing herein shall be deemed or construed as prohibiting an Owner, at such Owner's sole cost and expense, from obtaining and maintaining such further and supplemental, insurance coverages as such Owner may deem necessary or appropriate.

8.03 Detached Single-Family Home Insurance. An Owner of a Detached SingleFamily Home shall be solely responsible for obtaining and maintaining at such Owner's sole cost and expense, all general liability insurance and all insurance covering all alterations, additions, betterments and improvements to such Owner's Detached Single-family Home and all other personal property located at the Owner's Detached Single-Family Home or constituting a part thereof. Nothing herein shall be deemed or construed as prohibiting an Owner, at such Owner's sole cost and expense, from obtaining and maintaining such further and supplementary insurance coverages as such Owner may deem necessary or appropriate.

8.04 Additional Insurance. The Association shall be entitled to obtain and maintain such additional insurance coverages hereunder as the Board of Directors deem reasonably necessary of appropriate including, without limitation, liability insurance for all officers, directors,

aintain such additional insurance coverages hereunder as the Board of Directors deem reasonably necessary of appropriate including, without limitation, liability insurance for all officers, directors, trustees and employees of the Association.

8.05 Association Does Not Insure. The Association does not insure an Owner or occupant's personal property. Each Owner and occupant is solely responsible for insuring his personal property in his Dwelling and on the Property, including furnishings, vehicles, and stored items. THE ASSOCIATION STRONGLY RECOMMENDS THAT EACH OWNER AND OCCUPANT PURCHASE AND MAINTAIN INSURANCE ON HIS PERSONAL BELONGINGS.

8.06 Owner's Liability For Insurance Deductible. If repair or restoration of a Dwelling, a Structure, Common Area, Area of Common Responsibility, or any Improvement thereon is required as a result of an insured loss, the Board may levy an Individual Assessment, in the amount of the insurance deductible, against the Owner(s) or occupant(s) who would be responsible for the cost of the repair or reconstruction in the absence of insurance.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 46 2022 - 2022000140592 09/16/2022 04:51 PM Page 52 of 88 Notwithstanding the foregoing, if the Board reasonably determines that the loss is the result of the negligence or willful misconduct of an Owner, then the Board may levy an Individual Assessment against the Owner and his Lot for the amount of the deductible that is attributable to the act or omission.

ARTICLE 9 ARCHITECTURAL CONTROL COMMITTEE Declarant has a substantial interest in ensuring that Improvements within the Property maintain and enhance Declarant's reputation as a community developer and do not impair

TECTURAL CONTROL COMMITTEE Declarant has a substantial interest in ensuring that Improvements within the Property maintain and enhance Declarant's reputation as a community developer and do not impair Declarant's ability to market and sell all or any portion of the Property. Until Declarant has delegated its right to appoint and remove all members of the ACC to the Board as provided in Section 9.02(a) below, the ACC will be acting solely in Declarant's interest and will owe no duty to any other Owner or the Association. Notwithstanding any provision in this Declaration to the contrary, Declarant may appoint a single person to exercise the rights of the ACC.

fficial 9.01 Construction of Improvements. No Improvement, may be erected, placed, constructed, painted, altered, modified or remodeled on any Lot, and no Lot may be re-subdivided or consolidated with other Lots or Property, by anyone other than Declarant without the prior written approval of the ACC.

9.02 (a) Architectural Control Committee.

!you Composition. The ACC will be composed of not more than three (3) persons (who need not be Members or Owners) appointed as provided below, who will review Improvements proposed to be made by any Owner other than Declarant. Declarant will have the right to appoint and remove (with or without cause) all members of the ACC. Declarant may assign its right to appoint all members of the ACC to the Association by Recorded written instrument, and thereafter, the Board will have the right to appoint and remove (with or without cause) all members of the ACC. The Board may not appoint or elect a person to serve on the ACC if the person is a current Board member, a current Board member's spouse, or a person

ve (with or without cause) all members of the ACC. The Board may not appoint or elect a person to serve on the ACC if the person is a current Board member, a current Board member's spouse, or a person residing in a current Board member's household. The ACC will have the right to employ consultants and advisors as it deems necessary or appropriate.

Submission and Approval of Plans and Specifications. Construction plans and specifications will be submitted in accordance with the Design Guidelines, if any, or any additional rules adopted by the ACC together with any review fee which is imposed by the ACC in accordance with Section 9.02(c) to the ACC at the offices of Declarant or at such address as may hereafter be designated in writing from time to time. No Improvement may be constructed, placed or allowed on any Lot, until the plans and specifications and the builder which the Owner intends to use to construct the proposed structure or Improvement have been approved in writing by a Majority of the members of the ACC. The ACC may, in reviewing such plans and specifications consider any information that it deems proper; including, without limitation, any permits, environmental impact statements or percolation tests that may be required by the ACC or any other entity; and harmony of external design and location in relation to surrounding structures, topography, vegetation, and finished grade elevation. The ACC may postpone its review of any plans and specifications submitted for approval pending receipt of any Page 47 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 53 of 88 information or material which the ACC, in its sole discretion, may require. Site plans must be

ANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 53 of 88 information or material which the ACC, in its sole discretion, may require. Site plans must be approved by the ACC prior to the clearing of any Lot, or the construction of any Improvements.

The ACC may refuse to approve plans and specifications for proposed Improvements, or for the re-subdivision or consolidation of any Lot on any grounds that, in the sole and absolute discretion of the ACC, are deemed sufficient, including, but not limited to, purely aesthetic grounds.

(c) Design Guidelines. Declarant may adopt the initial Design Guidelines and, during the Development Period, will have the power from time to time, to adopt (unless previously adopted by Declarant), amend, modify, or supplement the Design Guidelines, if any.

Upon expiration or termination of the Development Period, the ACC will have the power, from time to time, to amend, modify, or supplement the Design Guidelines, if any In the event of any conflict between the terms and provisions of the Design Guidelines, if any, and the terms and provisions of this Declaration, the terms and provisions of this Declaration will control. In addition, the ACC will have the power and authority to impose a fee for the review of plans, specifications and other documents and information submitted to it pursuant to the terms of this Declaration. Such charges will be held by the ACC and used to defray the administrative expenses incurred by the ACC in performing its duties hereunder, provided, however, that any excess funds held by the ACC will be distributed to the Association at the end of each calendar year. The ACC will not be required to review any plans until a complete submittal package, as

, that any excess funds held by the ACC will be distributed to the Association at the end of each calendar year. The ACC will not be required to review any plans until a complete submittal package, as required by this Declaration and the Design Guidelines, is assembled and submitted to the ACC.

The ACC will have the authority to adopt such additional procedural and substantive rules and guidelines (including, without limitation the imposition of any requirements for certificates of compliance or completion relating to any Improvement and the right to approve in advance any contractor selected for the construction of Improvements, not in conflict with this Declaration, as it may deem necessary or appropriate in connection with the performance of its duties hereunder.

(d) D Of Actions of the Architectural Control Committee. The ACC may, by resolution unanimously adopted in writing, designate one or more of its members, or an agent acting on its behalf, to take any action or perform any duties for and on behalf of the ACC, except the granting of variances. In the absence of such designation, the vote of a Majority of all of the members of the ACC taken at a duly constituted meeting will constitute an act of the ACC.

Failure to Act. In the event that any plans and specifications are submitted to the ACC as provided herein, and the ACC fails either to approve or reject such plans and specifications for a period of thirty (30) days following such submission, rejection of such plans and specifications by the ACC will be presumed. In furtherance, and not in limitation, of the foregoing, any failure of the ACC to act upon a request for a variance will not be deemed a consent to such variance, and the ACC's written approval of all requests for variances will be

ation, of the foregoing, any failure of the ACC to act upon a request for a variance will not be deemed a consent to such variance, and the ACC's written approval of all requests for variances will be expressly required.

(f) Variances. The ACC may grant variances from compliance with any of the provisions of the Design Guidelines, if any, or this Declaration, when, in the opinion of the ACC, in its sole and absolute discretion, such variance is justified. All variances must be evidenced in writing and must be signed by at least a Majority of the members of the ACC.

Each variance must also be Recorded; provided however, that failure to record a variance will AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 48 2022 - 2022000140592 09/16/2022 04:51 PM Page 54 of 88 not affect the validity thereof or give rise to any claim or cause of action against the ACC, including the Declarant or its designee, the Association, or the Board. If a variance is granted, no violation of the covenants, conditions, or restrictions contained in this Declaration or the Design Guidelines, if any, will be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such variance will not operate to waive or amend any of the terms and provisions of this Declaration or the Design Guidelines, if any, for any purpose except as to the particular property and in the particular instance covered by the variance, and such variance will not be considered to establish a precedent for any future waiver, modification, or amendment of the terms and provisions of this Declaration or the Design Guidelines, if any.

(g) Duration of Approval. The approval of the ACC of any plans and specifications

e waiver, modification, or amendment of the terms and provisions of this Declaration or the Design Guidelines, if any.

(g) Duration of Approval. The approval of the ACC of any plans and specifications and any variances granted by the ACC, will be valid for a period of one hundred and twenty (120) days only. If construction in accordance with such plans and specifications or variance is not commenced within such one hundred and twenty (120) day period and nigently prosecuted to completion within either: (i) one year after issuance of approval of such plans and specifications; or (ii) such other period thereafter as determined by the ACC, in its sole and absolute discretion, the Owner will be required to resubmit such plans and specifications or request for a variance to the ACC, and the ACC will have the authority to re-evaluate such plans and specifications in accordance with this Section 9.02(g) and may, in addition, consider any change in circumstances which may have occurred since the time of the original approval.

(h) No Waiver of Future Approvals. The approval of the ACC to any plans or specifications for any work done on proposed in connection with any matter requiring the approval or consent of the ACC will not be deemed to constitute a waiver of any right to withhold approval or consent as to any plans and specifications on any other matter, subsequently or additionally submitted for approval by the same or a different person, nor will such approval or consent be deemed to establish a precedent for future approvals by the ACC.

(i) Non-Liability of Committee Members. NEITHER DECLARANT, THE BOARD, THE ARCHITECTURAL CONTROL COMMITTEE, NOR ANY MEMBER WILL BE LIABLE TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE

e ACC.

(i) Non-Liability of Committee Members. NEITHER DECLARANT, THE BOARD, THE ARCHITECTURAL CONTROL COMMITTEE, NOR ANY MEMBER WILL BE LIABLE TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE OR INJURY ARISING OUT OF THE PERFORMANCE OF THE ARCHITECTURAL CONTROL COMMITTEE'S DUTIES UNDER THIS DECLARATION.

Un ARTICLE 10 MORTGAGE PROVISIONS The following provisions are for the benefit of holders, insurers and guarantors of first Mortgages on Lots within the Property. The provisions of this Article apply to the Declaration and the Bylaws of the Association.

10.01 Notice of Action. An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates (thereby becoming an “Eligible Mortgage Holder"), will be entitled to timely written notice of: AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 49 2022 - 2022000140592 09/16/2022 04:51 PM Page 55 of 88 (i) (ii) Any condemnation loss or any casualty loss which affects a material portion of the Property or which affects any Lot on which there is an eligible Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder; or Any lapse, cancellation, or material modification of any insurance policy maintained by the Association.

10.02 Examination of Books. The Association will permit Mortgagees to examine the books and records of the Association during normal business hours.

10.03 Taxes, Assessments and Charges. All taxes, assessments and charges that may become liens prior to first lien mortgages under Applicable Law will relate only to the individual

mal business hours.

10.03 Taxes, Assessments and Charges. All taxes, assessments and charges that may become liens prior to first lien mortgages under Applicable Law will relate only to the individual Lots and not to any other portion of the Property.

ARTICLE 11 ficial GENERAL PROVISIONS 11.01 Term. The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Declaration will run with and bind the Property, and will perpetually inure to the benefit of and be enforceable by the Association, and every Owner, including Declarant, and their respective legal representatives, heirs, successors, and assigns. Unless ninety (90%) of all outstanding votes of the Members that are entitled to be cast approve the termination of this Declaration, the provisions of this Declaration shall run with and bind the land and shall be and remain in effect perpetually to the extent permitted by law A written instrument terminating this Declaration shall not be effective unless recorded. If a local government requires its prior approval of a change of status for the Property or to terminate the Association, then the amendment must also be executed by the local government.

11.02 Eminent Domain. In the event it becomes necessary for any public authority to acquire all or any part of the Common Area for any public purpose during the period this Declaration is in effect, the Board is hereby authorized to negotiate with such public authority for such acquisition and to execute instruments necessary for that purpose. Should acquisitions by eminent domain become necessary, only the Board need be made a party, and in any event the proceeds received will be held by the Association for the benefit of the Owners. In the event any

isitions by eminent domain become necessary, only the Board need be made a party, and in any event the proceeds received will be held by the Association for the benefit of the Owners. In the event any proceeds attributable to acquisition of Common Area are paid to Owners, such payments will be allocated uniformly and paid jointly to the Owners and the holders of Mortgages or deeds of trust on the respective Lot.

11.03 Amendment. This Declaration may be amended or terminated by the Recording, of an instrument executed and acknowledged by: (a) Declarant acting alone and unilaterally; or (b) by the president and secretary of the Association setting forth the amendment and certifying that such amendment has been approved by Declarant (until expiration or termination of the Development Period) and Members entitled to cast at least sixty-seven percent (67%) of the number of votes entitled to be cast by members of the Association. The foregoing sentence shall in no way be interpreted to mean sixty-seven percent (67%) of a quorum as established pursuant to the Bylaws. No amendment will be effective without the written consent of Declarant, its AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 50 2022 - 2022000140592 09/16/2022 04:51 PM Page 56 of 88 successors or assigns during the Development Period. Specifically, and not by way of limitation, Declarant may unilaterally amend this Declaration: (i) to bring any provision into compliance with Applicable Law; (ii) to enable any reputable title insurance company to issue title insurance coverage on any Lot; (iii) to enable any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal Home Loan Mortgage

title insurance coverage on any Lot; (iii) to enable any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans, including, for example, the Federal Home Loan Mortgage Corporation, to make, purchase, insure or guarantee mortgage loans on Lots; or (iv) to comply with any requirements promulgated by a local, state or governmental agency, including, for example, the Department of Housing and Urban Development.

a 11.04 Enforcement. Except as otherwise provided herein, any Owner of Lot, at such Owner's own expense, Declarant and the Association will have the right to enforce, proceeding at law or in equity, all of the provisions of this Declaration. The Association and/or the Declarant may initiate, defend or intervene in any action brought to enforce any provision of this Declaration. Such right of enforcement will include both damages for and injunctive relief against the breach of any provision hereof. Every act or omission whereby any provision of the Restrictions is violated, in whole or in part, is hereby declared to be a nuisance and may be enjoined or abated by any Owner of a Lot (at such Owner's own expense), Declarant or the Association.

Any violation of any Applicable Law pertaining to the ownership, occupancy, or use of any portion of the Property or the Common Area is hereby declared to be a violation of this Declaration and subject to all of the enforcement procedures set forth herein. The Association and the Declarant will have the right to enforce, by a proceeding at law or in equity, the Restrictions. Failure to enforce any right, provision, covenant, or condition set forth in the Restrictions will not constitute a waiver of the right to enforce such right, provision, covenants or condition in the future. Failure

rce any right, provision, covenant, or condition set forth in the Restrictions will not constitute a waiver of the right to enforce such right, provision, covenants or condition in the future. Failure of the Declarant or the Association to enforce the terms and provisions of the Restrictions shall in no event give rise to any claim or liability against the Declarant, the Association, or any of their partners, directors, officers, or agents. EACH OWNER, BY ACCEPTING TITLE TO ALL OR ANY PORTION OF THE PROPERTY, HEREBY RELEASES AND SHALL HOLD HARMLESS EACH OF THE DECLARANY, THE ASSOCIATION, AND THEIR PARTNERS, DIRECTORS, OFFICERS, OR AGENTS FROM AND AGAINST ANY DAMAGES, CLAIMS, OR LIABILITY ASSOCIATED WITH THE FAILURE OF THE DECLARANT OR THE ASSOCIATION TO ENFORCE THE TERMS AND PROVISIONS OF THE RESTRICTIONS.

11.05 No Waiver. The Association and every Owner has the right to enforce all restrictions, conditions, covenants, liens, and charges now or hereafter imposed by the Restrictions.

Failure by the Association or by any Owner to enforce a provision of the Restrictions is not a waiver of the right to do so thereafter.

11.06 Recovery of Costs. The costs of curing or abating a violation of the Restrictions are the expense of the Owner or other person responsible for the violation. If legal assistance is obtained to enforce any provision of the Restrictions, or in any legal proceeding (whether or not suit is brought) for damages or for the enforcement of the Restrictions or the restraint of violations of the Restrictions, the prevailing party is entitled to recover from the non-prevailing party all reasonable and necessary costs incurred by it in such action, including reasonable attorneys' fees.

AMENDED AND RESTATED DECLARATION

ling party is entitled to recover from the non-prevailing party all reasonable and necessary costs incurred by it in such action, including reasonable attorneys' fees.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 51 2022 - 2022000140592 09/16/2022 04:51 PM Page 57 of 88 11.07 Higher Authority. The terms and provisions of this Declaration are subordinate to Applicable Law. Generally, the terms and provisions of this Declaration are enforceable to the extent they do not violate or conflict with Applicable Law.

11.08 Severability. If any provision of this Declaration is held to be invalid by any court of competent jurisdiction, such invalidity will not affect the validity of any other provision of this Declaration, or, to the extent permitted by Applicable Law, the validity of such provision as applied to any other person or entity.

11.09 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or any Rules and Regulations, the provisions of this Declaration, the Certificate, the Bylaws, and the Rules and Regulations, in such order, will govern.

11.10 Gender. Whenever the context so requires, all words herein in the male gender will be deemed to include the female or neuter gender, all singular words will include the plural, and all plural words will include the singular.

11.11 Notices. Any notice permitted or required to be given to any person by this Declaration will be in writing and may be delivered either personally or by mail. If delivery is made by mail, it will be deemed to have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage

y is made by mail, it will be deemed to have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to the person at the address given by such person to the Association for the purpose of service of notices. Such address may be changed from time to time by notice in writing given by such person to the Association nofficial 11.12 Acceptance by Owners. Each Owner of a Lot or other real property interest in the Property, by the acceptance of a deed of conveyance, accepts the same subject to all terms, restrictions, conditions, covenants, reservations, easements, liens and charges, and the jurisdiction rights and powers created or reserved by this Declaration or to whom this Declaration is subject, and all rights, benefits and privileges of every character hereby granted, created, reserved or declared. Furthermore, each Owner agrees that no assignee or successor to Declarant hereunder will have any liability for any act or omission of Declarant which occurred prior to the effective date of any such succession or assignment. All impositions and obligations hereby imposed will constitute covenants running with the land within the Property, and will bind any person having at any time any interest or estate in the Property, and will inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance.

11.13 No Partition. Except as may be permitted in this Declaration or amendments thereto, no physical partition of the Common Area or any part thereof will be permitted, nor will

y deed of conveyance.

11.13 No Partition. Except as may be permitted in this Declaration or amendments thereto, no physical partition of the Common Area or any part thereof will be permitted, nor will any person acquiring any interest in the Property or any part thereof seek any such judicial partition unless the portion of the Property or the Common Area in question has been removed from the provisions of this Declaration. This Section 11.13 will not be construed to prohibit the Board from acquiring and disposing of tangible personal property or from acquiring title to real property that may or may not be subject to this Declaration, nor will this provision be constructed to prohibit or affect the creation of a condominium regime in accordance with the Texas Uniform Condominium Act.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 52 2022 - 2022000140592 09/16/2022 04:51 PM Page 58 of 88 ARTICLE 12 EASEMENTS 12.01 Owner's Easement of Enjoyment. Every Owner is granted a right and easement of enjoyment over the Common Area and to use of Improvements thereon, subject to other rights and easements contained in the Restrictions. An Owner who does not occupy a Dwelling delegates this right of enjoyment to the Residents of the Dwelling, and is not entitled to use the Common Area.

12.02 Owner's Maintenance Easement. Each Owner is hereby granted an easement over and across any adjoining Dwelling and Lot and the Common Area to the extent reasonably necessary to maintain or reconstruct such Owner's Dwelling, subject to the consent of the Owner of the adjoining Lot and Dwelling and the consent of the Board as provided below, or the consent of the Board in the case of Common Area, and provided that the Owner's use of the easement

of the Owner of the adjoining Lot and Dwelling and the consent of the Board as provided below, or the consent of the Board in the case of Common Area, and provided that the Owner's use of the easement granted hereunder does not damage or materially interfere with the use of the adjoining Lot and/or Dwelling or Common Area. Requests for entry into an adjoining Lot must be made to the Owner of such Lot in advance. The consent of the adjoining Lot Owner will not be unreasonably withheld; however, the adjoining Lot Owner may require that access to the Lot be limited to Monday through Friday, between the hours of 8 a.m. until 6 p.m. or as otherwise agreed upon by the Lot Owners, and then only in conjunction with actual maintenance or reconstruction activities. Access to the Common Area for the purpose of maintaining of reconstructing any Dwelling or Improvement must be made in advance to the Board. The consent of the Board will not be unreasonably withheld; however, the Board may require that access to the Common Area be limited to Monday through Friday, between the hours of 8 a.m. unul 6 p.m. or as otherwise agreed upon by the Lot Owner and the Board, and then only in conjunction with actual maintenance or reconstruction activities. In addition, the Board may require that the Owner abide by additional reasonable rules with respect to use and protection of the Common Area during any such maintenance or reconstruction. If an Owner damages an adjoining Dwelling, Improvement, or Common Area in exercising the easement granted hereunder the Owner will be required to restore the Dwelling, Improvement, or Common Area to the condition which existed prior to any such damage, at such Owner's expense, within a reasonable period of time not to exceed thirty (30) days after the date

Dwelling, Improvement, or Common Area to the condition which existed prior to any such damage, at such Owner's expense, within a reasonable period of time not to exceed thirty (30) days after the date the Owner is notified in writing of the damage by the Association or the Owner of the damaged Dwelling.

ng Notwithstanding the foregoing, no Owner shall perform any work to any portion of his or her Dwelling or Lot if the work requires access to, over or through the Common Area or other Lots and or Dwellings without the prior consent of the ACC except in case of an emergency. All such work may only be performed by a person who shall deliver to the ACC prior to commencement of such work, in form satisfactory to the Board: (i) (ii) releases of the Board, the ACC, and the Association for all claims that such person may assert in connection with such work; indemnities of the Board, the ACC, and the Association, holding each and all of them harmless from and against any claims asserted for loss or damage to persons or property, including, but not limited to, Common Area, or other Lots and Dwellings; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 53 2022 - 2022000140592 09/16/2022 04:51 PM Page 59 of 88 (iii) (iv) certificates of insurance, including liability and workmen's compensation coverage, in amounts and with companies reasonably acceptable to the Board; and all other information and assurances which the Board may reasonably require.

12.03 Owner's Ingress/Egress Easement. Each Owner of a Townhome is hereby granted a perpetual easement over the Property, including the Lots (but excluding any portion of the Lot enclosed by a private fence installed by the Declarant or approved by the ACC creating a

hereby granted a perpetual easement over the Property, including the Lots (but excluding any portion of the Lot enclosed by a private fence installed by the Declarant or approved by the ACC creating a private yard space for the Lot Owner), as may be reasonably required, for ingress to and egress from his Townhome, but subject to any Rules and Regulations adopted from time to time by the Board.

cia 12.04 Owner's Encroachment Easement. Every Owner of a Townhome is granted an easement for the existence and continuance of any encroachment by his Dwelling on any adjoining Lot, Townhome or Common Area now existing or which may come into existence hereafter, as a result of construction, repair, shifting, settlement, or movement of any portion of a Townhome, or as a result of condemnation or eminent domain proceedings, so that the encroachment may remain undisturbed so long as the Improvement stands.

12.05 Easement of Cooperative Support Each Owner is granted an easement of cooperative support over each adjoining Low and Dwelling as needed for the common benefit of the Property, or for the benefit of Dwellings in Structure, of Dwellings that share any aspect of the Property that requires cooperation. By accepting an interest in or title to a Lot, each Owner: (i) acknowledges the necessity for cooperation in a townhome; (ii) agrees to try to be responsive and civil in communications pertaining to the Property and to the Association; (iii) agrees to provide access to the Dwelling and Lot when needed by the Association to fulfill its duties; and (iv) agrees to try refraining from actions that interfere with the Association's maintenance and operation of the Property.

12.06 Association's Access, Maintenance and Landscape Easement. Each Owner, by

v) agrees to try refraining from actions that interfere with the Association's maintenance and operation of the Property.

12.06 Association's Access, Maintenance and Landscape Easement. Each Owner, by accepting an interest in or title to a Lot, whether or not it is so expressed in the instrument of conveyance, grants to the Association an easement of access, maintenance and entry over, across, under, and through the Property, including without limitation, each Lot and each Dwelling and all Improvements thereon for the following purposes: (i) (ii) to perform inspections and/or maintenance that is permitted or required of the Association by the Restrictions or by Applicable Law; to perform maintenance that is permitted or required of the Owner by the Restrictions or by Applicable Law, if the Owner fails or refuses to perform such maintenance; (iii) to enforce the Restrictions; AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 54 2022 - 2022000140592 09/16/2022 04:51 PM Page 60 of 88 (iv) (v) (vi) (vii) to exercise self-help remedies permitted by the Restrictions or by Applicable Law; to respond to emergencies; to have the exclusive right to maintain landscaping and make, erect or install non-structural improvements (such as fences, irrigation systems, surface water drainage systems, lighting systems, walking or biking paths, and the like) in or on those portions of each Owner's Lot (but excluding any portion of such Lot enclosed by a private fence installed by the Declarant or approved by the ACC creating a private yard space for the Lot Owner unless such access is necessary to discharge the Association's responsibilities under this Declaration to grant easements to utility providers as may be necessary to

ivate yard space for the Lot Owner unless such access is necessary to discharge the Association's responsibilities under this Declaration to grant easements to utility providers as may be necessary to install, maintain, and inspect utilities serving any portion of the Property; and (viii) to perform any and all functions or duties of the Association as permitted or required by the Restrictions or by Applicable Law.

12.07 3' Maintenance Easement for Right to Enter Lot Adjacent to the Zero Side of a Lot. Certain Lots in Phase 2 are being developed utilizing a "zero lot-line" concept as depicted on Exhibit A Tract Exhibit. Accordingly, the "Zero Side" of a Dwelling is the side with an exterior wall located along the building setback line two feet (2') inside the “Zero Side Lot" and running parallel to the property line as denoted on the recorded Plat (the "Shared Property Line").

The lot that is adjacent to the Zero Side of a Dwelling is the "Adjacent Lot." To maximize the use, enjoyment, and recreation of each Owner, the Declarant for itself and the benefit of the affected Owners, hereby reserves, as denoted on the recorded Plat, a maintenance easement located on the Adjacent Lot which is three feet (3') in width running parallel to the property line and the full depth of the Adjacent Lot. The Zero Side Lot is benefited by this maintenance easement and the Adjacent Lot is burdened by said easement. The purpose of the maintenance easement is to provide the Zero Side Lot Owner access to maintain, repair, and/or construct the Zero Side Dwelling or Improvement, on the Zero Side Lot, including eaves, surface drains, irrigation systems, and underground drainage systems which serve the Zero Side Lot that are situated in or

the Zero Side Dwelling or Improvement, on the Zero Side Lot, including eaves, surface drains, irrigation systems, and underground drainage systems which serve the Zero Side Lot that are situated in or overhang into the area between the property line and the Shared Property Line (the "Shared Area).

12.08 Fence and Use Easement for Right to Enter 2' Shared Area on Zero Side of Lot. An Adjacent Lot Owner shall have the exclusive right to construct a fence two feet (2') in width running perpendicular to the Shared Property line across the Shared Area to use, occupy and enjoy the portion of the Shared Area fenced in as the side yard of the Adjacent Lot, in accordance with all City of McKinney codes and ordinances, to construct and maintain fences, Improvements and landscaping (in accordance with the Declaration); provided, however, the Adjacent Lot Owner shall not: (i) plant landscaping or other Improvements within the Shared Area which disrupt the grades or drainage along the perimeter of the Zero Side Dwelling's foundation or (ii) with the AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 55 2022 - 2022000140592 09/16/2022 04:51 PM Page 61 of 88 exception of a fence constructed in accordance with this easement, impede the Zero Side Lot Owner from realizing the benefit of the 3' maintenance easement or his or her access to the Shared Area. The Adjacent Lot is benefited by this 2' easement and the Zero Side Lot is burdened by said easement.

(i) Each Owner benefited by the easements shall use the easements in such a manner as to preserve any and all other rights of the Owner burdened by the easements and shall hold the burdened Lot Owner harmless from any and all injuries or damage caused

the easements in such a manner as to preserve any and all other rights of the Owner burdened by the easements and shall hold the burdened Lot Owner harmless from any and all injuries or damage caused as a result of the use of the easements by the Owner benented by the easements. In the event maintenance, repairs or construction shall be necessary, all necessary entries into the easement shal not be deemed a trespass as long as the maintenance, repairs, and construction shall be done in a timely and workmanlike manner, consent being hereby given for the sole purpose of entering into the easement to affect the same. The benefited Lot Owner therefore indemnifies the burdened Lot Owner and agrees to hold such burdened Lot Owner harmless for any and all injuries, death, damages, liabilities, claims or causes of action suffered as a result of the benefited Lot Owner's reasonable use of the easements.

(ii) In the event the easements are damaged or destroyed, or are in need of maintenance or repair, as a result of the benefited Lot Unofficial Owner's use of the same, the benefited Lot Owner shall, at his or her expense, repair or rebuild the same, as the case may be, in a timely and workmanlike manner. If such easements have not been repaired or rebuilt within a 30-day period after receiving monce from the burdened Lot Owner that his or her property has not been maintained, repaired or rebuilt, the burdened Lot Owner may initiate the maintenance or repair process (said notice of which shall set forth (i) the nature of the repair or rebuild intended to be made, (ii) the total estimated cost of such work, (iii) the contractor who will be performing such work, and (iv) the date such work is estimated to commence). Upon completion of the

ld intended to be made, (ii) the total estimated cost of such work, (iii) the contractor who will be performing such work, and (iv) the date such work is estimated to commence). Upon completion of the work, the burdened Lot Owner making the repairs shall submit the final bill to the benefited Lot Owner, who shall pay the final bill within ten (10) business days. If the benefited Lot Owner refuses to pay the final bill, the burdened Lot Owner shall be entitled to a lien on the benefited Lot Owner's property in an amount not less than the cost of making the repairs, together with reasonable attorneys' fees incurred. Whenever the easements, or any part thereof, shall be repaired or rebuilt, it shall be done in the same manner and at the same location as initially constructed and shall be of the same size and of the same or similar materials and of like quality.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 56 2022 - 2022000140592 09/16/2022 04:51 PM Page 62 of 88 (iii) Any fence constructed, installed, or maintained in the Shared Area pursuant to the 2' easement, shall be the sole maintenance responsibility of the Adjacent Lot Owner benefitted by the easement. Any fence constructed, installed, or maintained along the Shared Property Line shall be the shared maintenance responsibility of the Adjacent Lot Owner and Zero Side Lot Owner.

ARTICLE 13 DEVELOPMENT EASEMENTS 13.01 Right of Ingress and Egress. Declarant, its agents, employees, designees successors and assigns, and Homebuilders and its licensees will have a right of ingress and egress over and the right of access to the Common Area to the extent necessary to use the Common Area

ignees successors and assigns, and Homebuilders and its licensees will have a right of ingress and egress over and the right of access to the Common Area to the extent necessary to use the Common Area (as determined by Declarant in its sole discretion) in connection with the construction and development of the Property.

jers 13.02 Community Systems Easement. The Property shall be subject to a perpetual nonexclusive easement for the installation and maintenance of including the right to read, meters, service or repair lines and equipment, and to do everything and anything necessary to properly maintain and furnish the Community Systems and the facilities pertinent and necessary to the same, which easement shall run in favor of Declarant. Declarant shall have the right, but not the obligation, to install and provide the Community Systems and to provide the services available through the Community Systems to any and all Lots within the Property. Neither the Association nor any Owner shall have any interest therein. Any or all of such services may be provided either directly through the Association and paid for as part the Assessments or paid directly to Declarant, any affiliate of Declarant, or a third party, by the Owner who receives the services. The Community Systems shall be the property of Declarant unless transferred by Declarant, whereupon any proceeds of such transfer shall belong to Declarant. Declarant shall have the right but not the obligation to convey, transfer, sell or assign all or any portion of the Community Systems or all or any portion of the rights, duties or obligations with respect thereto, to the Association or to any Person. The rights of Declarant with respect to the Community Systems installed by Declarant

all or any portion of the rights, duties or obligations with respect thereto, to the Association or to any Person. The rights of Declarant with respect to the Community Systems installed by Declarant and the services provided through such Community Systems are exclusive, and no other Person may provide such services through the Community Systems installed by Declarant without the prior written consent of Declarant.

13.03 Reserved Easements. All dedications, limitations, restrictions and reservations shown on any Plat and all grants and dedications of easements, rights-of-way, restrictions and related rights made by Declarant or any third party prior to the Property becoming subject to this Declaration are incorporated herein by reference and made a part of this Declaration for all purposes as if fully set forth herein, and will be construed as being adopted in each and every contract, deed or conveyance executed or to be executed by or on behalf of Declarant. Declarant reserves the right to relocate, make changes in, and additions to said easements, rights-of-way, dedications, limitations, reservations, and grants for the purpose of most efficiently and economically developing the Property.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 57 2022 - 2022000140592 09/16/2022 04:51 PM Page 63 of 88 13.04 Improvements, Roadway and Utility Easements. Declarant hereby reserves unto itself and its agents and employees, a perpetual non-exclusive easement over, under, and across the Property, for installation, operation, maintenance, repair, relocation, removal and/or modification of any Improvements, roadways, walkways, pathways, street lighting, sewer lines,

der, and across the Property, for installation, operation, maintenance, repair, relocation, removal and/or modification of any Improvements, roadways, walkways, pathways, street lighting, sewer lines, water lines, utility lines, drainage or storm water lines, and/or other pipelines, conduits, wires, and/or any public utility function on, beneath or above the surface of the ground that serve the Property, and any other property owned by Declarant, with the right of access to the same at any time. Declarant will be entitled to unilaterally assign the easements reserved hereunder, or grant or assign permits or licenses over, under, and across the easement areas reserved hereunder, to any third party who owns, operates, or maintains the facilities and Improvements described in this Section 13.04. The exercise of the easement reserved herein will not extend to permitting entry into any Dwelling, nor will it unreasonably interfere with the use of any Lot or Dwelling Improvement constructed thereon. Notwithstanding the foregoing, the exercise of such easements reserved hereunder shall not unreasonably interfere with the use of any Dwelling for residential purposes.

腿网 13.05 Subdivision Entry and Fencing Easement. Declarant reserves for itself and the Association, an easement over and across the Property for the installation operation, maintenance, repair, relocation, removal and/or modification of certain subdivision entry facilities, walls, and/or fencing which serves the Property. Declarant Will have the right, from time to time, to Record a written notice which identifies the subdivision entry facilities, walls, and/or fencing to which the easement reserved hereunder applies. Declarant may designate all or any portion of the subdivision

written notice which identifies the subdivision entry facilities, walls, and/or fencing to which the easement reserved hereunder applies. Declarant may designate all or any portion of the subdivision entry facilities, walls, and/or fencing as Common Area by Recorded written notice. The exercise of the easements reserved hereunder will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or Dwelling.

13.06 Landscape and Monument Sign Easement. Declarant hereby reserves for itself and the Association, an easement over and across the Property and the Common Area for the installation, maintenance, repair or replacement of landscaping, signs, and/or monument signs which serve the Property and the Common Area. Declarant will have the right, from time to time, to Record a written notice, which identifies those portions of the Property and the Common Area to which the easement reserved hereunder applies. Declarant may designate the easement areas reserved hereunder as Common Area The exercise of the easements reserved hereunder will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or Dwelling.

13.07 Easement to Inspect and Right To Correct. For a period of ten (10) years after the expiration of the Development Period, Declarant reserves for itself and for Declarant's architect, engineer, other design professionals, builder, and general contractor the right, but not the duty, to inspect, monitor, test, redesign, correct, and relocate any Structure, Improvement, Dwelling, or condition that may exist on any portion of the Property or the Common Area, and a perpetual nonexclusive easement of access throughout the Property or the Common Area to the

Improvement, Dwelling, or condition that may exist on any portion of the Property or the Common Area, and a perpetual nonexclusive easement of access throughout the Property or the Common Area to the extent reasonably necessary to exercise this right. Declarant will promptly repair, at its sole expense, any damage resulting from the exercise of this right. By way of illustration but not limitation, relocation of a retaining wall may be warranted by a change of circumstance, imprecise siting of the original wall, or desire to comply more fully with Applicable Law. This Section may not be construed to create a duty for Declarant, and may not be amended without Declarant's Page 58 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 64 of 88 written and acknowledged consent. In support of this reservation, each Owner, by accepting an interest in or title to a Lot, hereby grants to Declarant an easement of access and entry over, across, under, and through the Property or the Common Area, including without limitation, each Lot, Structure, and Dwelling, and all Improvements thereon for the purposes contained in this Section.

13.08 Drainage and Detention Easement. The Drainage and Detention Easement will remain open at all times and will be maintained in a safe and sanitary condition by the owners of the Lot or Lots that are traversed by or adjacent to the Drainage and Detention Easement. The City of McKinney will not be responsible for the maintenance and operation of the Drainage and Detention Easement or for any damage to private property or person that results from the conditions of the Drainage and Detention Easement or for control of the erosion. No obstruction

he Drainage and Detention Easement or for any damage to private property or person that results from the conditions of the Drainage and Detention Easement or for control of the erosion. No obstruction to the natural flow of storm water run-off shall be permitted by construction of any type of building fence, or any other structure within the Drainage and Detention Easement unless approved by the City of McKinney Engineer. Provided however that it is understood that in the event that it becomes necessary for the City of McKinney to erect or consider erecting any type of drainage structure in order to improve the storm drainage that may be occasioned by drainage in or adjacent to the Property, then in such event, the City of McKinney shall have the right to enter upon the Drainage and Detention Easement at any point, or points, to investigate survey of erect, construct and maintain any drainage facility deemed necessary for drainage purposes. Each Owner shall keep the Drainage and Detention Easement clear and free of debris, silt, and any substance which would result in unsanitary conditions or obstruct the flow of water, and the City of McKinney shall have the right of ingress and egress for the purpose of inspection and supervision or maintenance work by the Owner to alleviate any undesirable conditions which may occur. Should the Owner not maintain the Drainage and Detention Easement, the City of McKinney may perform the work and assess the Owner for the cost of the work and if not paid attach a lien to such Owner's Lot.

The natural drainage through the Drainage and Detention Easement is subject to storm water overflow and natural bank erosion to an extent which cannot be definitely defined. The City of

h Owner's Lot.

The natural drainage through the Drainage and Detention Easement is subject to storm water overflow and natural bank erosion to an extent which cannot be definitely defined. The City of McKinney shall not be held liable for any damages of any nature resulting from the occurrence of these natural phenomenon, or resulting from the failure of any structure or structures, within the Drainage and Detention Easement.

13.09 Declarant as Attorney in Fact. To secure and facilitate Declarant's exercise of the rights reserved by Declarant pursuant to the terms and provisions of this Declaration, each Owner, by accepting a deed to a Lot and each Mortgagee, by accepting the benefits of a Mortgage against a Lot, and any other third party by acceptance of the benefits of a mortgage, deed of trust, mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any other security interest against any Lot, will thereby be deemed to have appointed Declarant such Owner's, Mortgagee's, and third party's inrevocable attorney-in-fact, with full power of substitution, to do and perform, each and every act permitted or required to be performed by Declarant pursuant to the terms of this Declaration. The power thereby vested in Declarant as attorney-in-fact for each Owner, Mortgagee and/or third party, will be deemed, conclusively, to be coupled with an interest and will survive the dissolution, termination, insolvency, bankruptcy, incompetency and death of an Owner, Mortgagee and/or third party and will be binding upon the legal representatives, administrators, executors, successors, heirs and assigns of each such party. The aforesaid power shall be vested in Declarant, its successors and assigns, for a period of twenty-five (25) years from

, administrators, executors, successors, heirs and assigns of each such party. The aforesaid power shall be vested in Declarant, its successors and assigns, for a period of twenty-five (25) years from the date the first Lot is conveyed to an individual purchaser, or until the expiration or termination of the Development Period, whichever occurs first. Declarant hereby reserves for itself, its AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 59 2022 - 2022000140592 09/16/2022 04:51 PM Page 65 of 88 successors and assigns the right to execute on behalf of each Owner, Mortgagee, and third party claiming a legal or equitable interest in the Common Area, any such agreements, documents, amendments or supplements to the Restrictions which may be required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) or by any governmental or quasi-governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area.

ARTICLE 14 DEVELOPMENT RIGHTS 14.01 Development by Declarant. It is contemplated that the Property will be developed pursuant to a coordinated plan, which may, from time to time, be amended of modified. Declarant reserves the right, but will not be obligated, to pursue the development construction and marketing of the Property, the right to direct the size, shape, and composition of the Property, the right to create and/or designate additional Lots and Common Area and to subdivide any of the Property pursuant to the terms of this Section 14.01, subject to any limitations imposed on portions of the

right to create and/or designate additional Lots and Common Area and to subdivide any of the Property pursuant to the terms of this Section 14.01, subject to any limitations imposed on portions of the Property by any applicable Plat. Collectively, the rights reserved to the Declarant as set forth in this Declaration shall be known as the "Development Rights", and Declarant hereby reserves the right and privilege for itself, and/or its assigns, to exercise the Development Rights, and any other rights reserved on behalf of the Declarant as set forth in this Declaration until twenty-four (24) months after the expiration or termination of the Development Period, except the right to appoint and remove Board members and officers of the Association which shall be governed by the provisions set out in Section 5.03. These rights may be exercised with respect to any portions of the Property and the Common Area. As each area is developed or dedicated, Declarant may designate the use, classification and such additional covenants, conditions and restrictions as Declarant may deem appropriate for that area.

14.02 Special Declarant Rights. Notwithstanding any provision of this Declaration to the contrary, at all times, Declarant will have the right and privilege: (i) to erect and maintain advertising signs (illuminated or non-illuminated), sales flags, other sales devices and banners for the purpose of aiding the sale of Lots in the Property; (ii) to maintain Improvements upon Lots as sales, model, management, business and construction offices; and (iii) to maintain and locate construction trailers and construction tools and equipment within the Property and the Common Area. The construction, placement or maintenance of Improvements by Declarant will not be

ntain and locate construction trailers and construction tools and equipment within the Property and the Common Area. The construction, placement or maintenance of Improvements by Declarant will not be considered a nuisance, and Declarant hereby reserves the right and privilege for itself to conduct the activities enumerated in this Section 14.02 until twenty-four (24) months after expiration or termination of the Development Period.

14.03 Addition of Land. Declarant may, at any time and from time to time, add the additional lands to the Property described in Exhibit “A-1". Declarant is under no obligation to add additional lands to the Property. Upon the filing of a notice of addition of land, such land will be considered part of the Property for purposes of this Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms, covenants, conditions, restrictions and obligations set forth in this Declaration, and the rights, privileges, duties, and liabilities of the persons subject to this Declaration will be the same with respect to such added land as with respect to the lands originally covered by this Declaration. To add lands to the AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 60 2022 - 2022000140592 09/16/2022 04:51 PM Page 66 of 88 Property, Declarant will be required only to Record a notice of addition of land containing the following provisions: (i) (ii) (iii) A reference to this Declaration, which reference will state the document number or volume and initial page number where this Declaration is Recorded; A statement that such land will be considered Property for purposes of this Declaration, and that all of the terms, covenants,

ber or volume and initial page number where this Declaration is Recorded; A statement that such land will be considered Property for purposes of this Declaration, and that all of the terms, covenants, conditions, restrictions and obligations of this Declaration will apply to the added land; and A legal description of the added land.

14.04 Assignment of Declarant's Rights. Notwithstanding any provision in this Declaration to the contrary, Declarant may, by written instrument, assign, in whole or in part, any of its privileges, exemptions, rights and duties under this Declaration to any person or entity and may permit the participation, in whole, in part, exclusively, or non-exclusively, by any other person or entity in any of its privileges, exemptions, rights and duties hereunder.

15 DISPUTE RESOLUTION 15.01 Agreement to Encourage Resolution of Disputes Without Litigation.

Unofficia ai Introduction and Definitions. The Association, the Owners, Declarant, all persons subject to this Declaration, and any person not otherwise subject to this Declaration who agrees to submit to this Article (collectively, the "Parties" agree to encourage the amicable resolution of disputes involving the Property and the Common Area to avoid the emotional and financial costs of litigation and arbitration if at all possible. Accordingly, each Party hereby covenants and agrees that this Article applies to all Claims as hereafter defined. This Article 15 may only be amended with the prior written approval of the Declarant, the Association (acting through a Majority of the Board), and Owners holding 100% of the votes in the Association.

As used in this Article only, the following words, when capitalized, have the following specified meanings: "Claim" means: (i) (ii)

the Board), and Owners holding 100% of the votes in the Association.

As used in this Article only, the following words, when capitalized, have the following specified meanings: "Claim" means: (i) (ii) Claims relating to the rights and/or duties of the Declaration, the Association, or the ACC, under the Restrictions.

Claims relating to the acts or omissions of the Declarant, the Association or a Board member or officer of the Association during control and administration of the Association, any claim asserted against the ACC.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 61 2022 - 2022000140592 09/16/2022 04:51 PM Page 67 of 88 (b) (c) Claimant.

(iii) Claims relating to the design or construction of the Common Area or any Improvements located on the Property.

"Claimant" means any Party having a Claim against any other Party.

"Respondent" means any Party against which a Claim has been asserted by a 15.02 Mandatory Procedures. Claimant may not initiate any proceeding before any administrative tribunal seeking redress of resolution of its Claim until Claimant has complied with the procedures of this Article. As provided in Section 15.09 below, a Claim will be resolved by binding arbitration.

ficial 15.03 Claim by the Association – Common Areas. In accordance with Article 5 of this Declaration, the Association does not have the power or right to institute, defend, intervene in, settle, or compromise litigation or administrative proceedings: (i) in the name of or on behalf of any Lot Owner (whether one or more); or (ii) pertaining to a Claim, as defined in Section 15.01(a) above, relating to the design or construction of Improvements on a Lot. In the event the

on behalf of any Lot Owner (whether one or more); or (ii) pertaining to a Claim, as defined in Section 15.01(a) above, relating to the design or construction of Improvements on a Lot. In the event the Association or a Lot Owner asserts a Claim related only to the Common Area, as a precondition to providing the Notice defined in Section 15 05. initiating the mandatory dispute resolution procedures set forth in this Article 15, or taking any other action to prosecute a Claim related to the Common Area, the Association or a Lot Owner, as applicable, must: (a) Independent Report on the Condition of the Common Areas. Obtain an independent third-party report (the "Common Area Report") from a licensed professional engineer which: (i) identifies the Improvements of Common Areas subject to the Claim including the present physical condition of the Common Areas; (ii) describes any modification, maintenance, or repairs to the Common Areas performed by the Lot Owner(s) and/or the Association; and (ii) provides specific and detailed recommendations regarding remediation and/or repair of the Common Areas subject to the Claim. For the purposes of this Section an independent third-party report is a report obtained directly by the Association Lot Owner and paid for by the Association or a Lot Owner, as applicable, and ot prepared by a person employed by or otherwise affiliated with the attorney or law firm that represents or will represent the Association or a Lot Owner in the Claim As precondition to providing the Notice described in Section 15.05, the Association of Lot Owner must provide at least ten (10) days prior written notice of the inspection, calculated from the date of receipt of such notice, to each party subject to a

n Section 15.05, the Association of Lot Owner must provide at least ten (10) days prior written notice of the inspection, calculated from the date of receipt of such notice, to each party subject to a Claim which notice shall identify the independent third-party engaged to prepare the Common Area Report, the specific Common Areas to be inspected, and the date and time the inspection will occur. Each party subject to a Claim may attend the inspection, personally or through an agent. Upon completion, the Common Area Report shall be provided to each party subject to a Claim. In addition, before providing the Notice described in Section 15.05, the Association or Lot Owner shall have permitted each party subject to a Claim the right, for a period of ninety (90) days, to inspect and correct, any condition identified in the Common Area Report.

AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 62 2022- 2022000140592 09/16/2022 04:51 PM Page 68 of 88 (b) Claim by the Association - Owner Meeting and Approval. If the Claim is prosecuted by the Association, the Association must obtain approval from Members holding at least sixty-seven percent (67%) of the votes in the Association to: (i) provide the Notice described in Section 15.05, (ii) initiate the mandatory dispute resolution procedures set forth in this Article 15, or (iii) take any other action to prosecute a Claim, which approval from Members must be obtained at a special meeting of Members called in accordance with the Bylaws. The notice of meeting required hereunder will be provided pursuant to the Bylaws but the notice must also include: (i) the nature of the Claim, the relief sought, the anticipated duration of prosecuting the Claim, and the likelihood of

under will be provided pursuant to the Bylaws but the notice must also include: (i) the nature of the Claim, the relief sought, the anticipated duration of prosecuting the Claim, and the likelihood of success; (ii) a copy of the Common Area Report; (iii) a copy of any proposed engagement letter, with the terms of such engagement between the Association and an attorney to be engaged by the Association to assert or provide assistance with the Claim (the "Engagement Letter"); (iv) a description of the attorney fees, consultant fees, expert witness fees, and court costs, whether incurred by the Association directly or for which it may be liable if it is not the prevailing party or that the Association will be required, pursuant to the Engagement Letter or otherwise, to pay if the Association elects to not proceed with the Claim; (v) a summary of the steps previously taken, and proposed to be taken, to resolve the Claim; (vi) an estimate of the impact on th value of each Lot if the Claim is prosecuted and an estimate of the impact on the value of each Lot after resolution of the Claim; (vii) an estimate of the impact on the marketability of each Lot if the Claim is prosecuted and during prosecution of the Claim, and an estimate of the impact on the value of each Lot during and after resolution of the Claim; (viii) the manner in which the Association proposes to fund the cost of prosecuting the Claim; and (ix) the impact on the finances of the Association, including the impact on present and projected reserves, in the event the Association is not the prevailing party. The notice required by this paragraph must be prepared and signed by a person other than, and not employed by or otherwise

projected reserves, in the event the Association is not the prevailing party. The notice required by this paragraph must be prepared and signed by a person other than, and not employed by or otherwise affiliated with, the attorney or law firm that represents or will represent the Association or Lot Owner, as applicable, in the Clam. In the event Members approve providing the Notice described in Section 15.05, or taking any other action to prosecute a Claim, the Members holding a Majority of the votes in the Association, at a special meeting called in accordance with the Bylaws, may elect to discontinue prosecution or pursuit of the Claim.

15.04 Claim by Owners - Improvements on Lots. Notwithstanding anything contained herein to the contrary, in the event a warranty is provided to a Lot Owner by Declarant or a Homebuilder relating to the design or construction of any Improvements located on a Lot, then this Article 15 shall not apply to those items and the Lot Owner's sole and exclusive remedies shall be pursuant to the agreement between the Owner and Homebuilder. If a warranty has not been provided to a Lot Owner relating to the design or construction of any Improvements located on a Lot, then this Article 15 will apply. If a Lot Owner brings a Claim, as defined in Section 15.01, relating to the design or construction of any Improvements located on a Lot (whether one or more), as a precondition to providing the Notice defined in Section 15.05, initiating the mandatory dispute resolution procedures set forth in this Article 15, or taking any other action to prosecute a Claim, the Lot Owner must obtain an independent third-party report (the “Owner Improvement Report") from a licensed professional engineer which: (i) identified the Improvements subject to

prosecute a Claim, the Lot Owner must obtain an independent third-party report (the “Owner Improvement Report") from a licensed professional engineer which: (i) identified the Improvements subject to the Claim including the present physical condition of the Improvements, (ii) describes any modification, maintenance, or repairs to the Improvements performed by the Lot Owner(s) and/or the Association, and (iii) provides specific and detailed recommendations regarding remediation AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 63 2022 - 2022000140592 09/16/2022 04:51 PM Page 69 of 88 and/or repair of the Improvements subject to the Claim. For purposes of this Section, an independent third-party report is a report obtained directly by the Lot Owner and paid for by the Lot Owner, and not prepared by a person employed by or otherwise affiliated with the attorney or law firm that represents or will represent the Lot Owner in the Claim. Asa precondition to providing the Notice described in Section 15.05, the Lot Owner must provide at least ten (10) days prior written notice of the inspection, calculated from the date of receipt of such notice, to each party subject to a Claim which notice shall identify the independent third-party engaged to prepare the Owner Improvement Report, the specific Improvements to be inspected, and the date and time the inspection will occur. Each party subject to a Claim may attend the inspection personally or through an agent. Upon completion, the Lot Owner Improvement Report shall be provided to each party subject to a Claim. In addition, before providing the Notice described in Section 15.05, the Lot Owner shall have permitted each party subject to a Claim the right, for a period of ninety (90)

h party subject to a Claim. In addition, before providing the Notice described in Section 15.05, the Lot Owner shall have permitted each party subject to a Claim the right, for a period of ninety (90) days, to inspect and correct, any condition identified in the Owner Improvement Report.

15.05 Notice. Claimant must notify Respondent in writing of the Claim the "Notice"), stating plainly and concisely: (i) the nature of the Claim, including date, time, location, persons involved, and Respondent's role in the Claim; (ii) the basis of the Claim (e., the provision of the Respondent to do or not do to resolve the Claim; and (iv) that the Notice is given pursuant to this Section. For Claims governed by Chapter 27 of the Texas Property Code, the time period for negotiation in Section 15.06 below, is equivalent to the sixty (60) day period under Section 27.004 of the Texas Property Code. If a Claim is subject to Chapter 27 of the Texas Property Code, the Claimant and Respondent are advised, in addition to compliance with Section 15.06, to comply with the terms and provisions of Section 27.004 during such sixty (60) day period. Section 15.06 does not modify or extend the time period set forth in Section 27.004 of the Texas Property Code.

Failure to comply with the time periods or actions specified in Section 27.004 could affect a Claim if the Claim is subject to Chapter 27 of the Texas Property Code. The one hundred and twenty (120) day period for mediation set forth in Section 15.07 below, is intended to provide the Claimant and Respondent with sufficient time to resolve the Claim in the event resolution is not accomplished during negotiation. If the Claim is not resolved during negotiation, mediation

provide the Claimant and Respondent with sufficient time to resolve the Claim in the event resolution is not accomplished during negotiation. If the Claim is not resolved during negotiation, mediation pursuant to Section 15.07 is required without regard to the monetary amount of the Claim.

If the Claimant is the Association, the Notice will also include: (a) a true and correct copy of the Common Area Report; (b) a copy of the Engagement Letter; (c) copies of all reports, studies, analyses, and recommendations obtained by the Association related to the Common Area which forms the basis of the Claims (d) a true and correct copy of the special meeting notice provided to Members in accordance with Section 15.03(b) above; and (e) reasonable and credible evidence confirming that Members holding sixty-seven percent (67%) of the votes in the Association approved providing the Notice. If the Claimant is not the Association and pertains to the Common Areas, the Notice will also include a true and correct copy of the Common Area Report. If the Claimant is not the Association and pertains to Improvements on a Lot, the Notice will also include a true and correct copy of the Owner Improvement Report.

15.06 Negotiation. The Claimant and Respondent will make every reasonable effort to meet in person to resolve the Claim by good faith negotiation. Within sixty (60) days after Respondent's receipt of the Notice, Respondent and Claimant will meet at a mutually acceptable place and time to discuss the Claim. If the Claim involves all or any portion of the Property, then AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 64 2022 - 2022000140592 09/16/2022 04:51 PM Page 70 of 88

lves all or any portion of the Property, then AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 64 2022 - 2022000140592 09/16/2022 04:51 PM Page 70 of 88 at such meeting or at some other mutually-agreeable time, Respondent and Respondent's representatives will have full access to the Property that is subject to the Claim for the purposes of inspecting the Property. If Respondent elects to take corrective action, Claimant will provide Respondent and Respondent's representatives and agents with full access to the Property to take and complete corrective action.

15.07 Mediation.

If the Parties negotiate, but do not resolve the Claim through negotiation within one-hundred twenty (120) days from the date of the Notice (or within such other period as may be agreed upon by the Parties), Claimant will have thirty (30) additional days within which to submit the Claim to mediation under the auspices of a mediation center or individual mediator on which the parties mutually agree. The mediator must have at least five (5) years of experience serving as a mediator and must have technical knowledge or expertise appropriate to the subject matter of the Claim. If Claimant does not submit the Claim to mediation within the 30-day period, Respondent may submit the Claim to mediation in accordance with this Section 15.07.

cial 15.08 Termination of Mediation. If the Parties do not settle the Claim within thirty (30) days after submission to mediation, or within a time deemed reasonable by the mediator, the mediator will issue a notice of termination of the mediation proceedings indicating that the Parties are at an impasse and the date that mediation was termination. Thereafter Claimant may file suit

he mediator will issue a notice of termination of the mediation proceedings indicating that the Parties are at an impasse and the date that mediation was termination. Thereafter Claimant may file suit or initiate arbitration proceedings on the Claim, as appropriate and permitted by this Article.

15.09 Binding Arbitration-Claims All Claims must be settled by binding arbitration.

Claimant or Respondent may, by summary proceedings (e.g., a plea in abatement or motion to stay further proceedings), bring an action in court to compel arbitration of any Claim not referred to arbitration as required by this Section 15.09.

(a) Governing Rules. If a Claim has not been resolved after mediation as required by Section 15.07, the Claim will be resolved by binding arbitration in accordance with the terms of this Section 15.09 and the rules and procedures of the American Arbitration Association (AAA) or, if the AAA is unable or unwilling to act as the arbitrator, then the arbitration shall be conducted by another neutral reputable arbitration service selected by Respondent in Collin County, Texas. Regardless of what entity or person is acting as the arbitrator, the arbitration shall be conducted in accordance with the AAA "Construction Industry Dispute Resolution Procedures" and, if they apply to the disagreement, the rules contained in the Supplementary Procedures for Consumer-Related Disputes. If such Rules have changed or been renamed by the time a disagreement arises, then the successor rules will apply. Also, despite the choice of rules governing the arbitration of any Claim, if the AAA has, by the time of Claim, identified different rules that would specifically apply to the Claim, then those rules will apply instead of the rules

es governing the arbitration of any Claim, if the AAA has, by the time of Claim, identified different rules that would specifically apply to the Claim, then those rules will apply instead of the rules identified above. In the event of any inconsistency between any such applicable rules and this Section 15.09, this Section 15.09 will control. Judgment upon the award rendered by the arbitrator shall be binding and not subject to appeal except as provided in Section 15.09(d), but may be reduced to judgment or enforced in any court having jurisdiction.

Notwithstanding any provision to the contrary or any applicable rules for arbitration, any arbitration with respect to Claims arising hereunder shall be conducted by a panel of three (3) arbitrators, to be chosen as follows: Page 65 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST 2022 - 2022000140592 09/16/2022 04:51 PM Page 71 of 88 (b) (i) (ii) (iii) One arbitrator shall be selected by Respondent, in its sole and absolute discretion; One arbitrator shall be selected by Claimant, in its sole and absolute discretion; and One arbitrator shall be selected by mutual agreement of the arbitrators having been selected by Respondent and the Claimant, in their sole and absolute discretion.

Exceptions to Arbitration; Preservation of Remedies. No provision of nor the exercise of any rights under, this Section 15.09 will limit the right of Claimant or Respondent, and Claimant and the Respondent will have the right during any Claim, to seek, use, and employ ancillary or preliminary remedies, judicial or otherwise, for the purposes of realizing upon, preserving, or protecting upon any property, real or personal,

during any Claim, to seek, use, and employ ancillary or preliminary remedies, judicial or otherwise, for the purposes of realizing upon, preserving, or protecting upon any property, real or personal, that is involved in a Claim, including, without limitation, rights and remedies relating to: (i) exercising self-help remedies (including set-off rights); or (ii) obtaining provisions or ancillary remedies such as injunctive relief, sequestration attachment garnishment, or the appointment of a receiver from a court having jurisdiction before, during, or after the pendency of any arbitration. The institution and maintenance of an action for judicial relief or pursuit of provisional or ancillary remedies or exercise of self-help remedies shall not constitute a waiver of the right of any party to submit the Claim to arbitration nor render inapplicable the compulsory arbitration provisions hereof (c) Statute of Limitations. All statutes of limitation that would otherwise be applicable shall apply to any arbitration proceeding under this Section 15.09.

(d) Scope of Award; Modification or Vacation of Award. The arbitrator shall resolve all Claims in accordance with the applicable substantive law. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of this Section 15.09 and subject to Section 15.10 below (attorney's fees and costs may not be awarded by the arbitrator), provided, however, that for a Claim, or any portion of a Claim governed by Chapter 27 of the Texas Property Code, or any successor statute, in no event shall the arbitrator award damages which exceed the damages a Claimant would be entitled to under Chapter 27 of the Texas Property Code. In all arbitration proceedings the

ccessor statute, in no event shall the arbitrator award damages which exceed the damages a Claimant would be entitled to under Chapter 27 of the Texas Property Code. In all arbitration proceedings the arbitrator shall make specific, written findings of fact and conclusions of law. In all arbitration proceedings the parties shall have the right to seek vacation or modification of any award that is based in whole, or in part, on (i) factual findings that have no legally or factually sufficient evidence, as those terms are defined in Texas law; (ii) conclusions of law that are erroneous; (iii) an error of federal or state law; or (iv) a cause of action or remedy not expressly provided under existing state or federal law. In no event may an arbitrator award speculative, consequential, or punitive damages for any Claim.

(e) Other Matters. To the maximum extent practicable, an arbitration proceeding hereunder shall be concluded within one hundred and eighty (180) days of the filing of the Claim for arbitration by notice from either party to the other. Arbitration proceedings hereunder shall be conducted in Collin County, Texas. The arbitrator shall be AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 66 2022 - 2022000140592 09/16/2022 04:51 PM Page 72 of 88 empowered to impose sanctions and to take such other actions as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure and Applicable Law. Each party agrees to keep all Claims and arbitration proceedings strictly confidential, except for disclosures of information required in the ordinary course of business of the parties or by Applicable Law

party agrees to keep all Claims and arbitration proceedings strictly confidential, except for disclosures of information required in the ordinary course of business of the parties or by Applicable Law or regulation. In no event shall any party discuss with the news media or grant any interviews with the news media regarding a Claim or issue any press release regarding any Claim without the written consent of the other parties to the Claim.

15.10 Allocation of Costs. Notwithstanding any provision in this Declaration to the contrary, each Party bears all of its own costs incurred prior to and during the proceedings described in the Notice, Negotiation, Mediation, and Arbitration sections above, including its attorney's fees. Respondent and Claimant will equally divide all expenses and fees charged by the mediator and arbitrator.

15.11 General Provisions. A release or discharge of Respondent from ability to Claimant on account of the Claim does not release Respondent from liability to persons who are not party to Claimant's Claim.

15.12 Period of Limitation.

nofficial (a) For Actions by an Owner. The exclusive period of limitation for any of the Parties to bring any Claim shall be the earliest of: (i) for Claims alleging construction defect or defective design, two (2) years and one (1) day from the date that the Owner discovered or reasonably should have discovered evidence of the Claim; (ii) for Claims other than those alleging construction defect of defective design, four (4) years and one (1) day from the date that the Owner discovered or reasonably should have discovered evidence of the Claim; or (iii) for all Claims, the applicable statute of limitations under Texas law. In no event shall this Section 15.12(a) be interpreted to extend any period of limitations under

evidence of the Claim; or (iii) for all Claims, the applicable statute of limitations under Texas law. In no event shall this Section 15.12(a) be interpreted to extend any period of limitations under Texas law.

(b) For Actions by the Association. The exclusive period of limitation for the Association to bring any Claim, including, but not limited to, a Claim of construction defect or defective design of the Common Areas, shall be the earliest of: (i) for Claims alleging construction defect of defective design, two (2) years and one (1) day from the date that the Association or its agents discovered or reasonably should have discovered evidence of the Claim; (ii) for Claims other than those alleging construction defect or defective design of the Common Areas, four (4) years and one (1) day from the date that the Association discovered or reasonably should have discovered evidence of the Claim; or (iii) for all Claims, the applicable statute of limitations under Texas law. In no event shall this Section 15.12(b) be interpreted to extend any period of limitations under Texas law.

15.13 Funding Arbitration and Litigation. The Association must levy a Special Assessment to fund the estimate costs of arbitration, including estimated attorney's fees, conducted pursuant to this Article 15 or any judicial action initiated by the Association. The Association may not use its annual operating income or reserve funds or savings to fund arbitration or litigation, AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 67 2022 - 2022000140592 09/16/2022 04:51 PM Page 73 of 88 unless the Association's annual budget or a savings account was established and funded from its inception as an arbitration and litigation reserve fund.

2022000140592 09/16/2022 04:51 PM Page 73 of 88 unless the Association's annual budget or a savings account was established and funded from its inception as an arbitration and litigation reserve fund.

[SIGNATURE PAGE FOLLOWS] Unofficial AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR LAKE FOREST Page 68 2022 2022000140592 09/16/2022 04:51 PM Page 74 of 88 EXECUTED to be effective on the date this instrument is recorded in the Official Public Records of Collin County, Texas.

DECLARANT: GRAND LAKE FOREST COMMUNITY, LLC, a Texas limited liability company, THE STATE OF TEXAS ess ass es By Printed Name: Robert Garcia Title: Vice President COUNTY OF DALLAS This instrument was acknowledged before me this day of September, 2022 Robert Garcia Vice President of GRAND LAKE FOREST COMMUNITY, LLC, a Texas limited liability company, on behalf of said limited liability company.

Unofficial (SEAL) Notary Public Signature LISA LMMCELVOY Notary Public, State of Texas Comm. Expires 07-20-2025 Notary ID 5205930 Q LAKE FOREST DRIVE 2022 - 2022000140592 09/16/2022 04:51 PM Page 76 of 88 ZERO LOT LINE 6.088 AC SCALE: 1" = 300' TRACT 14.892 AQ nofficial COMMON AREA 19.465 AC.

CORWIN ENGINEERING, INC.

200 W. Belmont, Suite E Allen, Texas 75013 (972) 396-1200 Firm No. F-5951 LAKE FOREST CITY OF MOKINNEY COLLIN COUNTY. TEXAS EXHIBIT A TRACT EXHIBIT