Lexington Estates TH Declaration

After Recording Return To: Robert D. Burton, Esq.

Winstead PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 Email: [email protected] LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] Collin County, Texas Declarant ASHTON DALLAS RESIDENTIAL L.L.C., a Texas limited liability company Cross reference to Lexington Estates Master Covenant [Residential], recorded as Document No.

in the Official Public Records of Collin County, Texas, as same may be amended from time to time.

4852-1657-1065v.3 57160-13 TABLE OF CONTENTS ARTICLE 1 DEFINITIONS ARTICLE 2 USE RESTRICTIONS 2.1 2.2 2.3 2.4 Fs 2.6 2.7 2.8 23 2.10 2.11 yy 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 Single Family Use Restrictions Rentals Rubbish and Debris Trash Containers Unsightly Articles; Vehicles Outside Burning, Hazardous Activities Flags — Approval Requirements Flags — Installation and Display Maintenance Temporary Structures Mobile Homes, Travel Trailers and Recreational Vehicles Injury to Person or Property Water Quality Facilities, Drainage Facilities and Drainage Ponds No Warranty of Enforceability On Street Parking Limited or Restricted Driveway Parking Compliance with Documents and Townhome Documents Insurance Rates Release ARTICLE 3 LEXINGTON ESTATES TOWNHOME ASSOCIATION, INC. ...ccsccscssssessseseeneeees 17 i LEXINGTON ESTATES.

DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Table of Contents (continued) 3.1 RAINE penne ners rege npn ere ren ees meen roeeenn ens vverenzreen senshi in ye naRe ted tae 17 3.2. Membership.................. ALAR cule ta PSC aD Ce oa oa a I anil 17 Se 17 BA VOI Gnas ceccssesecesscccsessecersrecsersssencssnebsnvacsuevaconusovenensenencesoenseveesseneesseoeensnseessaeses 17

3.2. Membership.................. ALAR cule ta PSC aD Ce oa oa a I anil 17 Se 17 BA VOI Gnas ceccssesecesscccsessecersrecsersssencssnebsnvacsuevaconusovenensenencesoenseveesseneesseoeensnseessaeses 17 Bete RORRERD FRU CW ss aacen tasasvieneeier eosin een orien ee Geneeeeeid etaeanetN eg eRDIINS 18 PCW as a acpi aa sesso nasssctesancecoetscatwennedagebunsrson 18 Bet ONC RATRTICCION orn accineernremacauinntennunammtiensainanta mies taaen ae 21 3.8 EIBUTAIICE 4 ,cnsesnreese0ncecen rence nsensessesess cases sovnsasepars rusnrosrecvabisocdvvtabstsileatl thessessoesees abbeoes 21 SS = Bulle Rabe Compvbrenchaisciccisiicss isis asin cai ccitas stan aeassen Sates etna tieanieiaaaih aaes 21 SOM op on Se SR ire le er 22 3.11 Right of Action by Townhome Association or Master Association............ 22 ARTICLE 4 CONSTRUCTION RESTRICTIONG......... datsinsshéasshaiinasnansencensseissesassssessonsvisenesseanieesens mseeded 4.1 —_ Construction of Improvement .........:s:ssccesseeerssesnsnrensenennenennsrnensanenseneneeneanens 23 AD UGB Libres aia esis sissies ceca cca taasiastevivincaniaenscs snsanienen canis tblatn ena teeters 23 RR een ereeceasee eee rr ee eer eee 23 BA FOMCOS ...cscssscsccssscccessecsosescncvssvonensevensovessavouosvoasossteseensacousesesenescouunorovssnceseauseesonses 23 6 (RVAC Lote ae aa sca isauysavbabcaus aseaencvocseeanasonss 24 48 Rainwater Harvesting Systems ............c.cscccsssesssssecnssscsesevecrrsséverensesetersnetiartese 25 4.9 XETISCAPING.........cscssscccessscscersencerserensnsnensnensnsusnsennssonsnsasesesooaesvooenensoossoesessnesneenees 26

ems ............c.cscccsssesssssecnssscsesevecrrsséverensesetersnetiartese 25 4.9 XETISCAPING.........cscssscccessscscersencerserensnsnensnensnsusnsennssonsnsasesesooaesvooenensoossoesessnesneenees 26 ARTICLE 5 COVENANT FOR TOWNHOME ASSESSMENTS .......cccssccssesseresenserenesceetsnsenereenenene 2 5.1 Purpose of Townhome Assessiment.........:ssccscssscessseneessenerarsnseneensanesnscnessensess 5.2 Townhome Asseanrier itt ri nsesainnesscsss isitsnaccacs sinaccussisen catesnieevctbsretaiinocsovionhearionss 28 oR —————————————EEE 29 5.4 Regular Townhome Assessments .........sssscsecsssessssenessesencssenssesnenensesnsenensneenens 29 5.5 Working Capital Townhome Assessment ..........s:sscsessesressseeneenencsneerseeneeneenes 30 5.6 Special Townhome Assessments ..........- Nippicas Cc aos seas iba cacanataubeu bailed cd 30 5.7 _ Individual Townhome Assessment .......c:sesersesssssserernesseesnesnencnenneneassesnennens 31 5.8 Amount Of ASSESSMEMNL........crrrsserssrerserserssernserecrersenrseseecsssesesererannssssnansacacasacaess 31 BP Gate Ae eB cas ne nicacreee eee rcs ean nthe 32 5.10 Owner's Personal Obligation for Payment of Townhome Assessments...32 5.11 Townhome Assessment Lien and Foreclosure.......-ss:scssssccsssseseneesesesnenensens 32 5.12 Exempt Property .............. sen sn ei gt tg nets ea pe pete eeee 34 5.13 Fines and Damages Townhome Assessment .........:scesssssesssersesscereneersesseecens 34 5.14 Collection of Master Assessments Levied Pursuant to the Covenant.......35 5.15 OPrrrerrtrer ttt retires ii LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Table of Contents (continued) 6.1 CVELVICW oocccecccccscccescssccescseseusausursuacevcnevaverscuecurcessesesucesesuresseesecersceeceneeeceracereerenes

ECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Table of Contents (continued) 6.1 CVELVICW oocccecccccscccescssccescseseusausursuacevcnevaverscuecurcessesesucesesuresseesecersceeceneeeceracereerenes 6.2 Townhome Association Maintains ............:::cccccecscecsseessseecsscenseceasessnsessneeesses 35 6.3 Area of Common Responsibility ...........cssssssssesessesensseesersnesensscnensarerenerseneees 37 6.4 | Fab antes (ye) Stet gel .4 nenserecenee eet eee eee es eSe a ececac acs SoSe oS OSECCO 37 6.5 Inspection Ob]igations.........ccccceessseecsesesssetenesessessteessesseeersesseneesssensssanererseeees 38 6.6 Owner Responsibility ........ccccssescsseesssserenesenenseseeessacseecsnenseesseanenseaenensnensnenees 39 6.7 Yard Maintenance ..........cccccccscesccssseceseccessesseccsenesaceseeesassesseessersansssseesaasesaeesees 40 6.8 DiSPUtes 0... ccccccserseeeserssseeeesresessaesesssaseesssersecsssnarssnsnranserensateaeenrarsnrensereetsenessaes 40 ARTICLE 7 INSURANCE PrErOrirrittrrrrrritirriiirerire rr itr er 7.1 Insurance — Townhome ASSOCiatiION........0..c:ccccccsescsseccsssenscesssucesenaceessensersseaes 40 7.2 Owner's Responsibility for Imsurance 0.0... c.ccecssessessseseseesssseescaessessneeeasaees 4?

73 Owner's Liability for Insurance Deductible ........ccccseseeessssetsesneneetsnens 4?

ARTICLE 8 EASEMENTS Reem area rae eee EEE EEE EEE OOF EE FEET APF E EEE OEESORPEREEG APTOS EP ETSSEEEE ESTES SHEESESDESSROSESSRSEESEESSOSEEEEES 8.1 Townhome Association’s Access, Maintenance and Landscape EaSeOMenth......ccccccscccecsecceccsssesecsusssccuassvsacssucsursurasecersusursesaceesseueredevevsuevaveseveneeeseneres 43 8.2 Easement to Inspect and Right To Correct ........cccscsssseseseneesssseeesenssesenssenees 43

cccscccecsecceccsssesecsusssccuassvsacssucsursurasecersusursesaceesseueredevevsuevaveseveneeeseneres 43 8.2 Easement to Inspect and Right To Correct ........cccscsssseseseneesssseeesenssesenssenees 43 SOS edu heY Co) ON FTI 7 | (9 (2S peenenerereteetepeeeee Dee ee ee epee ecco oc cose Sess Sco SCCE 44 ARTICLE 9 DEVELOPMENT Prririrrrtrritri tri tirii rir ii rrr irr rrr) 9.1 Notice of Applicability 0.0.0.0... .ccssecsssssestsssscssstessscsasscesesesresesseensnereerseneeeaeess 45 9.2 Withdrawal of Land... eeessccecsssssnssasssseesesscscesensecssecerssseeneassassecensesecnerss 45 93 Assignment of Declarant’s Rights..............scsssesssssseeseesesessseeeeeseneensensesneess 46 Prrretrerrtietietiiittiir trite 10.1 POSTETTTTIT TTT TTT TIT TEETER Eee Ere ieerreerer ire reir iit 10.2 AMONAMENE o.oo... ceeetesseseeseeessseessscceesenscessnaeessneaesaneesuaacoaaeeseasseneeaaneseasensees 46 10.3 Enforcement and Nonwaiver .............:ccccescessscessscssercesnecerecsnseersneereteserseessanes 47 10.4 —«§ COMSHLUCTION. cee ceccesscnnreseecsesecessssseecsssacececsusnecsecsaueecaceeauecessceneeseustenscesssenensess 47 10.5 Higher Authority.........cccsesssseessseesssencnessseesenssensstssseessesessesassensssersesssasesnees 47 VO.6 «— Com flicts 0c cesceccsscennesseeecceessceesensesesnnsessecseceenseceanererdeesteessscessgcsuasenscesonaseesaaee 47 VO.7 Gerber ooo ceecssccsesscsecssssscessessssssseeseansscsessecvsusessesssuesuesssessauecsnessseevsasesnesaseneees 47 10.8 Interpretation 0... ccsseseseeesseteseesseessenssssetenesessasessenesesesessnsseessssnevenssesneneenees 48 10.9 = Acceptance by OWNETS .....csccssesssrerssnereresenenerenenetenestnenceeenssesenescneeesaneensanaens 48 ARTICLE 11 DISPUTE RESOLUTION Perrier tr ttt ro ey ii LEXINGTON ESTATES

enssesneneenees 48 10.9 = Acceptance by OWNETS .....csccssesssrerssnereresenenerenenetenestnenceeenssesenescneeesaneensanaens 48 ARTICLE 11 DISPUTE RESOLUTION Perrier tr ttt ro ey ii LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES} 4852-1657-1065v.3 57160-13 Table of Contents (continued) 11.2. Mandatory Procedures............ PR ERE ERASE IEEE eens 49 11.3 Claim by Lot Owners — Improvements On Lots.........ccsceceseeeecesnsseerenenrenes 49 BREA NOU OG sesca: sccscecsvtacevseccear gecesi earereeeeerpaiarawannies 5 CeasbNESRTag epeapivikanntevesasNeeveahiaes 51 11.5 Negotiation............ AOR I re froRee eA FT Rae Pe CONE Oa Ry EEE pe 52 115: MeCBHticcecscu tac scene einen autem 52 Ti: Wllocatidn i Cate ccc cane 2a ee eens 54 Re TETSU ISIC RS coer paecee cases tin seoss biaeas fdsmeas cnash setog Kiseba raed aevegremmetasiesses attest 54 ETO: Peerbc kc Eder eer ies tas saa peat es a 54 11.11. Approval & Settlementt........cc.c..cscssesvesssversssseesnessearscesnvesenseesenansensneerenenecesestees 55 ARTICLE 12 DISCLOSURESG.........cccccssssseessseseeseepessseeseneenetensteceees ERLE ERT on ROEDER ERE TED FUR SOP SU srsexrecestescrrersseroeeomeceerer nemesis 55 jh Ree AMM 2 Fea Te ' Meegerpe rp cee a Pan sue pe Sa vey ere cs bse pee te es Pee apr race 56 D2 “CO ntSitle: CON SIONG sens cece ssssavecase senesscnapeancaatairsateeaanteaeigs capageccatenngerresesin iis 56 Deze SOR UCTORES ss acosk acctsenn coco eis poeeceeaaa oan Soa ae nae Ee 56 12:6: :Constriictiom Ach Cities vescsccsccisccccccsiccettsasessccees race redeattoamnaaaslieetee aioe 57

nngerresesin iis 56 Deze SOR UCTORES ss acosk acctsenn coco eis poeeceeaaa oan Soa ae nae Ee 56 12:6: :Constriictiom Ach Cities vescsccsccisccccccsiccettsasessccees race redeattoamnaaaslieetee aioe 57 12.7 — MOISKUTE..........eeesecsssesenereeeeersesssesnssssseessesoaseessesassosenenasnecsessneeesnessanspenssaragsaaseneess 57 EGE SR CTOCEMAT IEEE dace op cence cuca sesapnceesecars anecees renee] vesbud necpevsingied ueubeszanlasesnevsaeravustars cence 58 1210 Budgets asic sass Rai eeenaewaieaeniaete a eae een te 58 ZALES E PRN VB cscssster i caesccknsncsiceni viainsicensnsactney stein mips abies soenonababapubivatenspiedgnnd 58 D212: SCIONS ....--2200serreapcennnrepersosconsenserontsansdayiieviees SA iaScia gaa siius eau ctaiean saveeckeoantaoohs een 58 2:14; Sabathia BA@irOn MeN ts aciniccct mannenminnieinn ccc 58 12.14 Water Rumoff..i...cccecccessecsesssseeseseceesseeesatesssnreensenerseee Dettneanermrareverererentiscunareres 58 12.15 Photography of the Property .....:.scssssscosssecosssessecssossternenvevesesensensncesssevecseeseres 58 12.16 Changes to Street Names and Addresses .........-s:sssscscsssssncnessesssstsenrsnsnceserenes 58 LZ; Na ee ea i dias sa aatte Crt Seca saseina sabes nets 58 AZT. “TL cemttOrl OR WE sss isisesvascenvanscartnerccricnnr erie ncoarinnmdae so febebbiiestbsscesseebas 59 12.19 Wd ooic.eecccccccecssesecseeteeseeseneeseeareetsnee en esas ener seeps saecatenepemensnsseneaeseneesnnnenernegensey 59 RR SG se career tec enenai caesar eT meee 59 pF NS Oy 2 a erent ene ep eee poe ne ra Ron NE OE CL pene oar nn ee neh Date ae ne sdiceaaes ceed 60 iv LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13

pF NS Oy 2 a erent ene ep eee poe ne ra Ron NE OE CL pene oar nn ee neh Date ae ne sdiceaaes ceed 60 iv LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION TOWNHOMES This Development Area Declaration for Lexington Estates [Townhomes] (this “Development Area Declaration”) is made by ASHTON DALLAS RESIDENTIAL L.L.C., a Texas limited liability company (the “Declarant”), and is as follows: RECITALS: A. Declarant previously Recorded that certain Lexington Estates Master Covenant [Residential|, recorded as Document No. in the Official Public Records of Collin County, Texas (the “Covenant”).

B. Pursuant to the Covenant, Declarant served notice that portions of the Property may be made subject to one or more Development Area Declarations upon the Recording of one or more Notices of Applicability in accordance with Section 9.5 of the Covenant, and once such Notices of Applicability have been Recorded, the portions of the Property described therein will constitute the Development Area and will be governed by and fully subject to this Development Area Declaration in addition to the Covenant.

A Development Area is a portion of Lexington Estates which is subject to the terms and provisions of the Covenant. A Development Area Declaration inciudes specific restrictions which apply to the Development Area, in addition to the terms and provisions of the Covenant.

C. Upon the further Recording of one or more Notices of Applicability, portions of the Property identified in such notice or notices will be subject to the terms and provisions of this Development Area Declaration. The Property made subject to the terms and provisions of

portions of the Property identified in such notice or notices will be subject to the terms and provisions of this Development Area Declaration. The Property made subject to the terms and provisions of this Development Area Declaration will be referred to herein as the “Development Area.”

NOW, THEREFORE, it is hereby declared: (i) those portions of the Property as and Applicability 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) each contract or deed conveying those portions of the Property which are made subject to this Development Area Declaration 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; and (iii) that this Development Area Declaration will supplement and be in addition to the covenants, conditions, and restrictions of the Covenant.

I LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 ARTICLE 1 DEFINITIONS Unless the context otherwise specifies or requires, the following words and phrases when used in this Development Area Declaration have the meanings hereinafter specified: “Area of Common Responsibility” means those portions of a Lot, Structure or Dwelling

following words and phrases when used in this Development Area Declaration have the meanings hereinafter specified: “Area of Common Responsibility” means those portions of a Lot, Structure or Dwelling that are designated, from time to time, by this Development Area Declaration or the Townhome Association to be maintained, repaired, and replaced by the Townhome Association, as a common expense of the Townhome Association, as reflected in the Designation of Area of Common Responsibility and Maintenance Chart attached to this Development Area Declaration as Exhibit “A”.

“Bulk Rate Contract” or “Bulk Rate Contracts” means one or more contracts which are entered into by the Townhome 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, security services, trash pick-up services, propane service, natural gas service, landscape services and any other services of any kind or nature which are considered by the Townhome Board to be beneficial. Each Bulk Rate Contract must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period.

“Dwelling” means the single family residence located on a Lot, together with any garage incorporated therein, whether or not the Dwelling is occupied for residential purposes.

“Fence Maintenance Services” means the repair and maintenance of the Perimeter Fencing (defined herein) installed by Declarant on each Unit which includes the following: (a) replacement of rotted wood; (b) repair or replacement of damaged gates; (c) repair or replacement of damaged posts; (d) staining repaired or replaced components of the fence; and

es the following: (a) replacement of rotted wood; (b) repair or replacement of damaged gates; (c) repair or replacement of damaged posts; (d) staining repaired or replaced components of the fence; and (e) re-staining fencing at least once every four (4) to six (6) years. The Board shall determine, in its sole discretion, whether to repair versus replace components of a fence or trellis.

Notwithstanding the forgoing, the Board will have the right to modify the Fence Maintenance Service provided hereunder from time to time.

“Master Assessments” means any assessment levied by the Master Association, pursuant to the Covenant or other Applicable Law.

“Master Association” means the Lexington Estates Residential Community, Inc., a Texas nonprofit corporation.

“Master Board” means the Board of Directors of the Master Association.

“Owner” means the person(s), entity or entities, including Declarant, holding all or a portion of the fee simple interest in any Lot within the Development Area. Mortgagees who 2 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 acquire title to a Lot through a deed in lieu of foreclosure or through foreclosure are Owners.

Persons or entities having ownership interests merely as security for the performance of an obligation are not Owners. Every Owner is a Townhome Member.

“Occupant” means a resident, occupant or tenant of a Lot within the Development Area.

“Perimeter Fencing” means the fencing located along or near the outer boundary of the Property and includes the fencing located along the back boundary of the Lots.

“Rainwater Harvesting System” means one or more rain barrels, tanks, or rainwater harvesting systems used to collect and store rainwater runoff from roofs or downspouts for later reuse.

y of the Lots.

“Rainwater Harvesting System” means one or more rain barrels, tanks, or rainwater harvesting systems used to collect and store rainwater runoff from roofs or downspouts for later reuse.

“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 or more adjacent Lots; and (ii) has one or more Party Walls (as defined in Section 2.18 of this Development Area Declaration) separating the Dwellings comprising such building.

“Townhome Assessments” means assessments the Townhome Association may impose under this Development Area Declaration.

“Townhome Association” means Lexington Estates Townhome Association, Inc., a Texas nonprofit corporation, which will be created by the Declarant to exercise the authority and assume the powers specified in Article 3 and elsewhere in this Development Area Declaration. The failure of the Townhome Association to maintain its corporate charter from time to time does not affect the existence or legitimacy of the Townhome Association, which derives its authority from this Development Area Declaration, the Covenant, the Townhome Certificate, the Townhome Bylaws, and Applicable Law.

“Townhome Board” means the Board of Directors of the Townhome Association.

“Townhome Bylaws” means the Bylaws of the Townhome Association as adopted and as amended from time to time.

d Applicable Law.

“Townhome Board” means the Board of Directors of the Townhome Association.

“Townhome Bylaws” means the Bylaws of the Townhome Association as adopted and as amended from time to time.

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

3 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 “Townhome Community Manual” means the community manual, which may be initially adopted by the Declarant or the Townhome Board and Recorded as part of the initial project documentation for the benefit of the Townhome Association. The Townhome Community Manual may include the Townhome Bylaws, Townhome Rules and other policies governing the Townhome Association. The Townhome Community Manual may be amended, from time to time, by the Declarant or by a Majority of the Townhome Board.

“Townhome Documents” means, singularly or collectively, as the case may be, this Development Area Declaration, the Townhome Certificate, Townhome Bylaws, the Townhome Community Manual, as each may be amended from time to time, and any Townhome Rules promulgated by the Townhome Association pursuant to this Development Area Declaration, as adopted and amended from time to time.

“Townhome Members” means every person or entity that holds membership privileges in the Townhome Association.

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

Any other capitalized terms used but not defined in this Development Area Declaration

me Board for the regulation and management of the Development Area, including any amendments to those instruments.

Any other capitalized terms used but not defined in this Development Area Declaration will have the meanings given to such terms in the Covenant.

ARTICLE 2 USE RESTRICTIONS All of the Development Area will be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the following limitations and restrictions: 2.1 Single Family Use Restrictions. The Development Area will be used solely for single-family residential purposes.

No professional, business, or commercial activity to which the general public is invited shall be conducted on any portion of the Development Area, except an Owner or Occupant may conduct business activities within a Dwelling so long as: (i) such activity complies with all Applicable Law; (ii) participation in the business activity is limited to the Owner(s) or Occupant(s) of a Dwelling; (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 Development Area, sound, or smell from outside the Dwelling; (iv) the business activity does not involve door-to-door solicitation of residents within the Development Area; (v) the business does not, in the Master Board’s judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles parked within the Development Area which is noticeably greater than that which is typical of Dwellings in which no business activity is being conducted; (vi) the business activity is consistent with the residential character of the Development Area and does not 4 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13

ed; (vi) the business activity is consistent with the residential character of the Development Area and does not 4 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Development Area as may be determined in the sole discretion of the Master Board; and (vii) the business does not require the installation of any machinery other than that customary to normal household operations. 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 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 residence in compliance with Section 2.2 will not be considered a business or trade within the meaning of this subsection. This subsection will not apply to any activity conducted by the Declarant or a Homebuilder.

Notwithstanding any provision in this Development Area Declaration to the contrary, until the expiration or termination of the Development Period: (i) Declarant and/or its licensees may construct and maintain upon portions of the Common Area or Special Common Area, and any Lot owned by the Declarant such facilities and may conduct such activities which, in Declarant’s sole opinion, may be reasonably required, convenient, or incidental

rea or Special Common Area, and any Lot owned by the Declarant such facilities and may conduct such activities which, in Declarant’s 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 have an easement over and across the Common Area and Special Common Area for access and use of such facilities at no charge; and (ii) Declarant and/or its licensees will have an access easement over and across the Common Area and Special Common Area for the purpose of making, constructing and installing improvements to the Common Area and Special Common Area.

2.2 Rentals. No portion of the Development Area may be used as an apartment house, flat, lodging house, hotel, bed and breakfast lodge, or any similar purpose, but the Dwelling constructed on a Lot may be leased for residential purposes for a lease term of no less than twelve (12) months. All leases will be in writing. The Owner must provide to its lessee copies of the Documents and the Townhome Documents. Notice of any lease, together with such additional information as may be required by the Master Board, must be remitted to the Master Association by the Owner on or before the expiration of ten (10) days after the effective date of the lease. All leases must be for the entire Dwelling.

2.3 Rubbish and Debris. As determined by the Lexington Estates Reviewer, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the 3) LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13

on Estates Reviewer, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the 3) LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Development Area, and no odors will be permitted to arise therefrom so as to render all or any portion of the Development Area unsanitary, unsightly, offensive, or detrimental to any other property or Occupants. 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 Master Association.

24 Trash Containers. Trash containers and recycling bins must be stored in one of the following locations: (i) inside the garage of the Dwelling constructed on the Lot; or (ii) behind or on the side of a Dwelling in such a manner that the trash container and recycling bin is not visible from any street, alley, or adjacent Dwelling, e.g. behind a privacy fence or other appropriate screening. The Lexington Estates Reviewer will have the right to specify additional locations in which trash containers or recycling bins must be stored.

2.5 Unsightly Articles; Vehicles. No article deemed to be unsightly by the Master Board will 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, all-terrain vehicles and garden maintenance equipment will be kept at all times except

ailers, graders, trucks other than pickups, boats, tractors, campers, wagons, buses, motorcycles, motor scooters, all-terrain vehicles and garden maintenance equipment will be kept at all times except when in actual use, in enclosed structures or screened from view and no repair or maintenance work may be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household fabrics must be appropriately screened from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials, scrap, refuse or trash must be kept, stored, or allowed to accumulate on any portion of the Development Area except within enclosed structures or appropriately screened from view. No racing vehicles or any other vehicles (including, without limitation, motorcycles or motor scooters) that are inoperable or do not have a current license tag may be visible on any Lot or may be parked on any roadway within the Development Area.

Motorcycles must be operated in a quiet manner.

Parking of commercial vehicles or equipment, recreational vehicles, boats and other watercraft, trailers, stored vehicles or inoperable vehicles in places other than: (i) in enclosed garages; and (ii) behind a fence so as to not be visible from any other portion of the Development Area 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 Dwelling.

2.6 Qutside Burning. No exterior fires are permitted with the exception of

rom this provision for such period of time as is reasonably necessary to provide service or to make a delivery to a Dwelling.

2.6 Qutside Burning. No exterior fires are permitted with the exception of barbecues, outside fireplaces, braziers and incinerator fires that are contained within facilities or receptacles and in areas designated and approved by the Lexington Estates Reviewer. No 6 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Owner may permit any condition upon its portion of the Development Area which creates a fire hazard or violates Applicable Law.

2.7 Hazardous Activities. No activities may be conducted on or within the Development Area and no Improvements may be constructed on or within any portion of the Development Area which, in the opinion of the Master 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 Development Area unless discharged in conjunction with an event approved in advance by the Lexington Estates Reviewer 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 Development Area may be used for the takeoff, storage, or landing of aircraft (including, without limitation, helicopters) except for medical emergencies.

2.8 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

e, 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 Development Area (as used in this paragraph, the term “domestic household pet” does not include non-traditional pets such pot-bellied pigs, miniature horses, chickens, exotic snakes or lizards, ferrets, monkeys or other exotic animals). The Master 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 or Occupant may keep on such Owner's or Occupant’s Lot more than four (4) cats and dogs, in the aggregate. 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 Development Area other than within the residence, or the fenced yard space associated therewith, unless confined to a leash. The Master Board may restrict pets to certain areas on the Development Area. No anima! may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Development Area, 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 front yards, porches or other unenclosed outside areas of the Lot. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed and inoculated as required by Applicable Law.

losed outside areas of the Lot. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed and inoculated as required by Applicable Law.

All pets not confined to a residence must wear collars with appropriate identification tags and all outdoor cais are required to have a bell on their collar. If, in the opinion of the Master 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 or Occupant, upon written notice, may be required to remove the pet from the Development Area.

2.9 Antennae. Except as expressly provided below, no exterior radio or television antennae or aerial or satellite dish or disc, nor any Solar Energy Device, may be erected, 7 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES} 4852-1657-1065v.3 57160-13 maintained or placed on a Lot without the prior written approval of the Lexington Estates Reviewer; provided, however, that: {i) an antenna designed to receive direct broadcast services, including direct-to-home satellite services, that is one meter or less in diameter; or (ii) an antenna designed to receive video programming services via multipoint distribution services, including multichannel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or (iii) | an antenna that is designed to receive television 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

st 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 Lexington Estates Reviewer, consistent with Applicable Law, in order to minimize obtrusiveness as viewed from streets and adjacent property. Declarant and/or the Master Association will have the right, but not the obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or any portion of the Development Area.

2.10 Location of Permitted Antennas. A Permitted Antenna may be installed solely on the Owner's Lot and may not encroach upon any street, Common Area, Special Common Area, or any other portion of the Development Area. A Permitted Antenna may 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 Development Area, other than the Lot. In order of preference, the locations of a Permitted Antenna which will be considered least visible by the Lexington Estates Reviewer are as follows: (i) attached to the back of the principal single-family Dwelling 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 (ii) attached to the side of the principal single-family Dwelling 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.

The Lexington Estates Reviewer may, from time to time, modify, amend, or supplement

ted Antenna any higher than the lowest point of the roofline and screened from view of adjacent Lots and the street.

The Lexington Estates Reviewer may, from time to time, modify, amend, or supplement the rules regarding installation and placement of Permitted Antennas.

8 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Satellite dishes one meter or less in diameter, e.g., DirecTV or Dish satellite dishes, are permitted; HOWEVER, you are required to comply with the rules regarding installation and placement. These rules and regulations may be modified by the Lexington Estates Reviewer from time to time.

Please contact the Lexington Estates Reviewer for the current rules regarding installation and placement.

2.11 Signs. Unless otherwise permitted 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 Lexington Estates Reviewer, except for: 2.11.1 Declarant Signs. Signs erected by the Declarant or erected with the advance written consent of the Declarant; 2.11.2 Security Signs. One small security service sign per Lot, provided that the sign has a maximum face area of two (2) square feet and is located no more than five (5) feet from the front elevation of the principal Dwelling constructed upon the Lot; 2.11.3 Permits. Permits as may be required by Applicable Law; 2.11.4 Religious Item_on Door. A religious item on the entry door or door frame of a Dwelling (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 Dwelling, does not exceed twenty-five (25) square inches;

rame), 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 Dwelling, does not exceed twenty-five (25) square inches; 2.11.5 Sale or Rental Signs. One (1) temporary “For Sale” or “For Lease” sign per Lot, provided that the sign will be limited to: (i) a maximum face area of five (5) square feet on each visible side and, if free standing, is mounted on a single or frame post; (ii) an overall height of the sign from finished grade at the spot where the sign is located may not exceed four feet (4’); and (iii) the sign must be removed within two (2) business days following the sale or lease of the Lot 2.11.6 Political Signs. Political signs may be erected provided the sign: (i) is erected no earlier than the 90% day before the date of the election to which the sign relates; (ii) is removed no later than the 10% day after the date of the election to which the sign relates; and (iii) is ground-mounted. Only one sign may be erected for each candidate or ballot item. In addition, signs which include any of the components or characteristics described in Section 202.009(c} of the Texas Property Code are prohibited; and 2.11.7 No Soliciting Signs. A “no soliciting” sign near or on the front door to the principal residence constructed upon the Lot, provided, that the sign may not exceed twenty-five (25) square inches.

9 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Except for signs which are erected by the Declarant or erected with the advance written consent of the Declarant, no sign may be displayed in the window of any Improvement located ona Lot.

2.12 Flags ~ Approval Requirements. An Owner is permitted to display the flag of

he advance written consent of the Declarant, no sign may be displayed in the window of any Improvement located ona Lot.

2.12 Flags ~ Approval Requirements. An Owner is permitted to display the flag of the United States of America, the flag of the State of Texas, an official or replica flag of any branch of the United States Military, or one flag with official insignia of a college or university (“Permitted Flag”) and permitted to install a flagpole no more than five feet in length affixed to the front of a Dwelling near the principal entry or affixed to the rear of a Dwelling (“Permitted Flagpole”). Only two permitted Flagpoles are allowed per Dwelling. A Permitted Flag or Permitted Flagpole need not be approved in advance by the Lexington Estates Reviewer.

Approval by the Lexington Estates Reviewer is required prior to installing vertical freestanding flagpoles installed in the front or back yard area of any Lot (“Freestanding Flagpole”). To obtain approval of any Freestanding Flagpole, the Owner shall provide the Lexington Estates Reviewer with the following information: (i) the location of the Freestanding Flagpole to be installed on the Lot; (ii) the type of Freestanding Flagpole to be installed; (iii) the dimensions of the Freestanding Flagpole; and {iv) the proposed materials of the Freestanding Flagpole (the “Flagpole Application”). A Flagpole Application may only be submitted by an Owner. The Flagpole Application shall be submitted in accordance with the provisions of Article 6 of the Covenant.

2.13 Flags — Installation and Display. Unless otherwise approved in advance and in writing by the Lexington Estates Reviewer, Permitted Flags, Permitted Flagpoles and Freestanding Flagpoles, installed in accordance with the Flagpole Application, must comply

pproved in advance and in writing by the Lexington Estates Reviewer, Permitted Flags, Permitted Flagpoles and Freestanding Flagpoles, installed in accordance with the Flagpole Application, must comply with the following: (i) No more than one Freestanding Flagpole OR no more than two Permitted Flagpoles are permitted per Lot, on which only Permitted Flags may be displayed; (ii) | Any Permitted Flagpole must be no longer than five feet in length and any Freestanding Flagpole must be no more than 20° in height; (iii) Any Permitted Flag displayed on any flagpole may not be more than three feet in height by five feet in width; (iv) 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; {v) The display of a Permitted Flag, or the location and construction of a Permitted Flagpole or Freestanding Flagpole must comply with Applicable Law, easements and setbacks of record; 10 LEXINGTON ESTATES.

DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 (vi) 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 of the flagpole and harmonious with the Dwelling; (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 will not be aimed

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 will not be aimed towards or directly affect any neighboring Lot. Such illumination will also comply with the outdoor lighting restrictions set forth in the Documents; and Flagpole must be secured so as to reduce or eliminate noise from flapping against the metal of the Permitted Flagpole or Freestanding Flagpole.

2.14 Maintenance. The Owners of each Lot will jointly and severally have the duty and responsibility, at their sole cost and expense, to keep their Lot and all Improvements thereon in good condition and repair and in a well-maintained, safe, clean and attractive condition at all times. The Master Board, in its sole discretion, will determine whether a violation of the maintenance obligations set forth in this Section has occurred. Such maintenance includes, but is not limited to the following, which must be performed in a timely manner, as determined by the Master Board, in its sole discretion: (i) Prompt removal of all litter, trash, refuse, and wastes.

Keeping exterior lighting and mechanical facilities in working Keeping sidewalks and driveways in good repair.

Complying with Applicable Law.

(v) _ Repainting of Improvements.

(vi) | Repair of exterior damage, and wear and tear to Improvements.

2.15 Tanks. The Lexington Estates Reviewer must approve any tank used or proposed in connection with a Dwelling, including tanks for storage of fuel, water, oil, or liquid petroleum gas (LPG), and including swimming pool filter tanks. No elevated tanks of any kind

used or proposed in connection with a Dwelling, including tanks for storage of fuel, water, oil, or liquid petroleum gas (LPG), and including swimming pool filter tanks. No elevated tanks of any kind may be erected, placed or permitted on any Lot within the Development Area without the 1] LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 advance written approval of the Lexington Estates Reviewer. All permitted tanks must be screened from view in accordance with a screening plan approved in advance by the Lexington Estates Reviewer. This provision will not apply to a tank used to operate a standard residential gas grills, nor will it apply to barrels used as part of a Rainwater Harvesting Systems with a capacity of less than 50 gallons, so long as such barrels are actively being used for rainwater collection and storage.

2.16 ‘Femporary Structures. No tent, shack, or other temporary building, Improvement, or structure must be placed upon the Development Area without the prior written approval of the Lexington Estates Reviewer; 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 of the Declarant, approval to include the nature, size, duration, and location of such structure.

2.17 Mobile Homes, Travel Trailers and Recreational Vehicles. No mobile homes, travel trailers or recreational vehicles may be parked or placed on any street, right of way, Lot or used as a residence, either temporary or permanent, at any time. However, such vehicles may be parked temporarily for a period not to exceed seventy-two (72) consecutive hours

et, right of way, Lot or used as a residence, either temporary or permanent, at any time. However, such vehicles may be parked temporarily for a period not to exceed seventy-two (72) consecutive hours during each two (2) month period. Notwithstanding the foregoing, sales trailers or other temporary structures expressly approved by the Lexington Estates Reviewer or allowed pursuant to Section 9.2 of the Covenant will be permitted.

2.18 Party Walls and Fences. A fence or wali 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”. To the extent not inconsistent with the provisions of this Section, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions will apply thereto. Party Walls will also be subject to the following: 2.18.1 Encroachments & Easement. 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. 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.

2.18.2 Right to Repair. If the Party Wall is damaged or destroyed from any cause, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, the Owner of either Lot may repair or rebuild the Party Wall to its

royed from any cause, then to the extent that such damage is not covered by insurance and repaired out of the proceeds of insurance, the Owner of either Lot may repair or rebuild the Party Wall to its previous condition, and the other Owner or Owners that the wall serves will thereafter contribute to the cost of restoration thereof in equal proportions without prejudice, subject 12 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 however, to the right of any such Owners to call for a larger contribution from the others under any rule or law regarding liability for negligent or willful acts or omissions. The Owners of both Lots, their successors and assigns, have the right to the full use of the repaired or rebuilt Party Wail. No Party Wall may be constructed, repaired, or rebuilt without the advance written approval of the Lexington Estates Reviewer in accordance with Article 6 of the Covenant.

2.18.3 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 fails or refuses to pay his share of costs of repair or replacement of the Party Wali, 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

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.

2.18.4 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. 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 Lexington Estates Reviewer.

2.18.5 Townhome Association Insurance. Notwithstanding the foregoing, Party Walls that are covered by an insurance policy maintained by the Townhome Association pursuant to Section 7.1 shall be repaired and replaced in accordance with the provisions set forth in Section 7.1.

2.18.6 Dispute Resolution. In the event of any dispute arising concerning a Party Wall, or under the provisions of this Section (the “Dispute”), the parties must submit the Dispute to mediation. Should the parties be unable to agree on a mediator within ten (10) days after written request therefore by the Master Board, the Master Board will appoint a mediator.

If the Dispute is not resolved by mediation, the Dispute will be resolved by binding arbitration.

Either party may initiate the arbitration. Should the parties be unable to agree on an arbitrator within ten (10) days after written request therefore by the Master Board, the Master Board will appoint an arbitrator. The decision of the arbitrator will be binding upon the parties and will be

rator within ten (10) days after written request therefore by the Master Board, the Master Board will appoint an arbitrator. The decision of the arbitrator will be binding upon the parties and will be in lieu of any right of legal action that either party may have against the other. In the event an Owner fails to properly and on a timely basis (both standards to be determined by the Master Board in the Master Board's sole and absolute discretion) implement the decision of the mediator or arbitrator, as applicable, the Master Board may implement said mediator’s or arbitrator’s decision, as applicable. If the Master Board implements the mediator’s or arbitrator's decision on behalf of an Owner, the Owner otherwise responsible therefor will be 13 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES} 4852-1657-1065v.3 57160-13 personally liable to the Master Association for all costs and expenses incurred by the Master Association in conjunction therewith. If such Owner fails to pay such costs and expenses upon demand by the Master 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) will be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot hereunder will be secured by the liens reserved in the Covenant for Assessments and may be collected by any means provided in the Covenant for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s).

2.19 Security. The Townhome Association or Master Association may, but is not

nt for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s).

2.19 Security. The Townhome Association or Master Association may, but is not obligated to, maintain or support certain activities within the Development Area designed, either directly or indirectly, to improve safety in or on the Development Area. Each Owner and Occupant acknowledges and agrees, for himself and his guests, that Declarant, the Townhome Association, the Master Association, and their respective directors, officers, committees, agents, and employees are not providers, insurers, or guarantors of security within the Development Area. Each Owner and Occupant acknowledges and accepts as his sole responsibility to provide security for his own person and property, and assumes all risks for loss or damage to same. Each Owner and Occupant further acknowledges that Declarant, the Townhome Association, the Master Association and their respective directors, officers, committees, agents, and employees have made no representations or warranties, nor has the Owner or Occupant relied on any representation or warranty, express or implied, including any warranty of merchantability or fitness for any particular purpose, relative to any fire, burglary, and/or intrusion systems recommended or installed, or any security measures undertaken within the Development Area. Each Owner and Occupant acknowledges and agrees that Declarant, the Townhome Association, the Master Association, and their respective directors, officers, committees, agents, and employees may not be held liable for any loss or damage by reason of any failure to provide adequate security or the ineffectiveness of security measures undertaken.

officers, committees, agents, and employees may not be held liable for any loss or damage by reason of any failure to provide adequate security or the ineffectiveness of security measures undertaken.

2.20 Injury to Person or Property. Neither the Townhome Association, Master Association nor Declarant, or their respective directors, officers, committees, agents, and employees have a duty or obligation to any Owner, Occupant or their guests: (i) to supervise minor children or any other person; (ii) to fence or otherwise enclose any Lot; or (iii) to provide security or protection to any Owner, Occupant, 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 Townhome Association, Master Association and Declarant EACH OWNER AGREES TO INDEMNIFY AND HOLD HARMLESS THE TOWNHOME ASSOCIATION, MASTER 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 DEVELOPMENT AREA 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 14 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 COVERED BY INSURANCE OBTAINED BY THE TOWNHOME ASSOCIATION OR MASTER ASSOCIATION AT THE TIME OF SUCH ACCIDENT OR INJURY.

2.21 Water Quality Facilities, Drainage Facilities and Drainage Ponds. The Development Area may include one or more water treatment plant, waste water treatment plant, water quality facilities, sedimentation, drainage and detention facilities, or ponds which

inage Ponds. The Development Area may include one or more water treatment plant, waste water treatment plant, water quality facilities, sedimentation, drainage and detention facilities, or ponds which serve all or a portion of the Development Area and are inspected, maintained and administered by the Master Association in accordance with all Applicable Law. Access to these facilities and ponds is limited to persons engaged by the Master Association to periodically maintain such facilities. Each Owner is advised that the water treatment plant, waste water treatment plant, water quality facilities, sedimentation, drainage and detention facilities, and ponds are an active utility feature integral to the proper operation of the Development Area and may periodically hold standing water. Each Owner is advised that entry into the water treatment plant, waste water treatment plant, water quality facilities, sedimentation, drainage and detention facilities, or ponds may result in injury and is a violation of the Townhome Rules.

2.22 No Warranty of Enforceability. Declarant makes no warranty or representation as to the present or future validity or enforceability of the Documents or the Townhome Documents. Any Owner acquiring a Lot in reliance on one or more of the Documents or Townhome Documents will assume all risks of the validity and enforceability thereof and, by acquiring the Lot, agrees to hold Declarant harmless therefrom.

2.23 On Street Parking. Owners and Occupants 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.

ed 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 designee during the Development Period. Visitor parking areas, if any, shall only be used for temporary parking. "Temporary" for the purposes of the foregoing sentence shall mean no more than twenty-four (24) hours.

2.24 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.e., 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 alley or fire lane.

2.25 Compliance with Documents and Townhome Documents. Each Owner, his or her family, occupants of a Lot, and the Owner's tenants, guests, invitees, and licensees will comply strictly with the provisions of the Documents (as defined in the Covenant) and the Townhome Documents, as may be amended from time to time. Failure to comply with any of the Documents {as defined in the Covenant) or the Townhome Documents will constitute a 15 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 violation of thereof and may result in a fine against the Owner in accordance with Section 5.14

ll constitute a 15 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 violation of thereof and may result in a fine against the Owner in accordance with Section 5.14 of the Covenant and Section 5.13 of this Development Area Declaration, and will give rise to a cause of action to recover sums due for damages or injunctive relief, or both, maintainable by the Declarant, the Master Board on behalf of the Master Association, the Townhome Board on behalf of the Townhome Association, the Lexington Estates Reviewer, or by an aggrieved Owner. Without limiting any rights or powers of the Master Association, the Townhome Association, either the Master Board, Townhome Board or the Lexington Estates Reviewer may (but neither will be obligated to) remedy or attempt to remedy any violation of any of the provisions of the Documents (as defined in the Covenant) or Townhome Documents, and the Owner whose violation has been so remedied will be personally liable to the Master Association or Townhome Association, as applicable, 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 Master Association or Townhome 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 (112%) per month) will be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot will be secured by the liens reserved in this Development Area Declaration for Townhome Assessments and/or the Covenant for Assessments and may be collected by any means

d and chargeable against a Lot will be secured by the liens reserved in this Development Area Declaration for Townhome Assessments and/or the Covenant for Assessments and may be collected by any means provided in this Development Area Declaration and/or the Covenant for the collection of Townhome Assessments or Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s). Each such Owner will release and hold harmless the Master Association, the Townhome Association and their 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 Master Association’s or Townhome Association’s acts or activities under this Section (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Master Association’s or Townhome Association’s negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Master Association’s or Townhome 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.

2.26 Insurance Rates. Nothing may be done or kept on the Development Area that would increase the rate of casualty or liability insurance or cause the cancellation of any such insurance on the Common Area or Special Common Area, or the Improvements located thereon, without the prior written approval of the Master Board.

2.27 Release. EACH OWNER HEREBY RELEASES AND HOLDS HARMLESS THE TOWNHOME ASSOCIATION, THE MASTER ASSOCIATION, DECLARANT, THE

ts located thereon, without the prior written approval of the Master Board.

2.27 Release. EACH OWNER HEREBY RELEASES AND HOLDS HARMLESS THE TOWNHOME ASSOCIATION, THE MASTER ASSOCIATION, DECLARANT, THE LEXINGTON ESTATES REVIEWER AND THEIR AFFILIATES, OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF SUCH OWNER’S USE OF ANY COMMON AREA OR SPECIAL COMMON AREA.

16 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Neither the Townhome Association, Master Association nor Declarant will assume any responsibility or liability for any personal injury or property damage which is occasioned by use of any Common Area or Special Common Area, and in no circumstance will words or actions by the Townhome Association, Master Association or Declarant constitute an implied or express representation or warranty regarding the fitness or condition of any Common Area or Special Common Area.

ARTICLE 3 LEXINGTON ESTATES TOWNHOME ASSOCIATION, INC.

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

3.2 Membership. Any person or entity, upon becoming an Owner, will automatically become a member of the Townhome Association. Membership will be appurtenant to and will run with the ownership of the Lot that qualifies the Owner thereof for

pon becoming an Owner, will automatically become a member of the Townhome 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 Townhome Board, an Owner must provide the Townhome Association with: (1) a copy of the recorded deed by which the Owner has acquired title to the Lot; (2) the Owner's address, phone number, and driver's license number, if any; (3) any Mortgagee's name and address; and (4) the name and phone number of any Occupant other than the Owner.

3.3 Governance. The Townhome Board will consist of at least three (3) persons elected at the annual meeting of the Townhome Association, or at a special meeting called for such purpose. Notwithstanding the foregoing provision or any provision in this Development Area Declaration to the contrary, until the 10th anniversary of the date this Development Area Declaration is Recorded, Declarant will have the sole right to appoint and remove all members of the Townhome Board. No later than the 10th anniversary of the date this Development Area Declaration is Recorded, or sooner as determined by Declarant, the Townhome Board shall hold a meeting of Townhome Members of the Townhome Association for the purpose of electing one-third of the Townhome Board (the “Initial Member Election Meeting”), which Townhome Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and

ownhome Board (the “Initial Member Election Meeting”), which Townhome Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and remove two-thirds of the Townhome Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period.

3.4 Voting. In any situation in which an Owner or Townhome Member is entitled individually to exercise the vote allocated to such Owner's Lot, if there is more than one Owner 17 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 of a Lot, the vote for such Lot shall be exercised as the co-Owners holding a Majority of the ownership interest in the Lot determine among themselves and advise the Secretary of the Townhome Association in writing prior to the close of balloting. Any co-Owner may cast the vote for the Lot, and Majority agreement shall be conclusively presumed unless another coOwner of the Lot protests promptly to the President or other person presiding over the meeting or the balloting, in the case of a vote taken outside of a meeting. In the absence of a majority agreement and if the vote is cast differently by co-Owners on a matter, the voting interest will be split proportionality between each co-Owner, e.g., if there are two co-Owners of a Lot which has been allocated one vote, and one co-Owner votes for the matter and the other co-Owner votes against the matter, each co-Owner will be allocated one-half (1/2) vote. If there are more than two co-Owners and the vote is not evenly split between co-Owners, the vote of a majority of the co-Owners will prevail for purposes of the matter to which the vote applies. In no event

e are more than two co-Owners and the vote is not evenly split between co-Owners, the vote of a majority of the co-Owners will prevail for purposes of the matter to which the vote applies. In no event shall the vote for such Lot exceed the total votes to which such Lot is otherwise entitled pursuant to Section 3.5.

3.5 Voting Allocation. The number of votes which may be cast for election of members to the Townhome Board (except as provided by Section 3.3) and on all other matters to be voted on by the Townhome Members will be calculated as set forth below.

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

3.5.2. In addition to the votes to which Declarant is entitled by reason of Section 3.5.1, for every one (1) vote outstanding in favor of any other person or entity, Declarant will have four (4) additional votes until the expiration or termination of the Development Period.

3.5.3. Declarant may cast votes allocated to the Declarant pursuant to this Section 3.5, shall be considered a Townhome Member for the purpose of casting such votes, and need not own any portion of the Development Area as a pre-condition to exercising such votes.

3.6 Powers. The Townhome Association will have the powers of a Texas nonprofit corporation. It will further have 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 the laws of Texas or this Development Area Declaration. Without in any way \imiting the generality of the two preceding sentences, the Townhome Board, acting on behalf of the Townhome Association, will have the following powers at all times: (i) Townhome Rules, Townhome Bylaws and Townhome

nerality of the two preceding sentences, the Townhome Board, acting on behalf of the Townhome Association, will have the following powers at all times: (i) Townhome Rules, Townhome Bylaws and Townhome Community Manual. To make, establish and promulgate, and in its discretion to amend from time to time, or repeal and re-enact, such Townhome Rules, Townhome Bylaws and the Townhome Community Manual not in conflict with the Covenant or this Development Area Declaration, as it deems proper, covering any and all aspects of the Development Area (including the operation, 18 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 maintenance and preservation thereof} or the Townhome Association. Any Townhome Rules, and any modifications thereto to existing Townhome Rules, Townhome Bylaws or the Townhome Community Manual, proposed by the Townhome Board must be approved in advance and in writing by the Declarant until expiration or termination of the Development Period.

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

Association's affairs, and to make such books and records, together with current copies of the Townhome Documents available for inspection by the Owners, Mortgagees, and insurers or guarantors of any Mortgage upon request during normal business hours.

(iv) Townhome Assessments. To levy and collect Townhome Assessments and to determine Townhome Assessment Units, as provided in Article 5 below.

(v) Right of Entry and Enforcement. To enter at any time without

nhome Assessments. To levy and collect Townhome Assessments and to determine Townhome Assessment Units, as provided in Article 5 below.

(v) 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, upon any Lot and into any Improvement thereon for the purpose of enforcing the Townhome Documents or for the purpose of maintaining or repairing any area, Improvement or other facility to conform to the Townhome Documents. The expense incurred by the Townhome Association in connection with the entry upon any Lot or 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 Townhome 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 5 hereof for Townhome Assessments. The Townhome 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 Townhome Documents. The Townhome Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Townhome Documents; provided, however, that the Townhome Board will never be authorized to expend any Townhome Association funds for the purpose of bringing suit against Declarant, or its successors or assigns. The Townhome

vided, however, that the Townhome Board will never be authorized to expend any Townhome Association funds for the purpose of bringing suit against Declarant, or its successors or assigns. The Townhome Association may not alter or demolish any Improvements on any Lot, in 19 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 enforcing this Development Area Declaration before a judicial order authorizing such action has been obtained by the Townhome Association, or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH OWNER AND OCCUPANT HEREBY RELEASES AND HOLDS HARMLESS THE TOWNHOME 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 TOWNHOME ASSOCIATION’S ACTS OR ACTIVITIES UNDER THIS SECTION 3.6(V) (INCLUDING ANY COST, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING OUT OF THE TOWNHOME ASSOCIATION’S NEGLIGENCE IN CONNECTION THEREWITH), EXCEPT TO THE EXTENT SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY REASON OF THE TOWNHOME ASSOCIATION’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. “GROSS NEGLIGENCE” DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE.

(vi) Legal and Accounting Services. To retain and pay for legal and accounting services necessary or proper in the operation of the Townhome Association.

(vii) Manager. To retain and pay for the services of a person or firm (the “Manager”) to manage and operate the Townhome Association, including its property, to the extent deemed advisable by the Townhome Board.

er. To retain and pay for the services of a person or firm (the “Manager”) to manage and operate the Townhome Association, including its property, to the extent deemed advisable by the Townhome Board.

Additional personnel may be employed directly by the Townhome Association or may be furnished by the Manager. To the extent permitted by Applicable Law, the Townhome Board may delegate any other duties, powers and functions to the Manager. THE TOWNHOME MEMBERS HEREBY RELEASE THE TOWNHOME ASSOCIATION AND THE MEMBERS OF THE TOWNHOME BOARD FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER OR FUNCTION SO DELEGATED.

(viii) Property Services. To pay for water, sewer, garbage removal, street lights, landscaping, and all other utilities, services, repair and maintenance.

(ix) Other Services and Properties. To obtain and pay for any other property and services, and to pay any other taxes or assessments that the Townhome Association or the Townhome Board is required or permitted to secure or to pay for pursuant to Applicable Law or under the terms of the Townhome Documents or as determined by the Townhome Board.

20 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 (x) 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 Townhome Association hereunder must be approved in advance and in writing by the Declarant.

(xi) Authority with Respect to Development Area Declaration. To do any act, thing or deed that is necessary or desirable, in the judgment of the Townhome Board, to implement, administer or enforce any of the Townhome

ith Respect to Development Area Declaration. To do any act, thing or deed that is necessary or desirable, in the judgment of the Townhome Board, to implement, administer or enforce any of the Townhome Documents. Any decision by the Townhome Board to delay or defer the exercise of the power and authority granted by this Section 3.6 will not subsequently in any way limit, impair or affect ability of the Townhome Board to exercise such power and authority.

3.7. Indemnification. To the fullest extent permitted by Applicable Law but without duplication of (and subject to) any rights or benefits arising under the Townhome Certificate or Townhome Bylaws, the Townhome 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 is, or was, a director, officer, committee member, employee, servant or agent of the Townhome 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 Townhome Board or a court of competent jurisdiction that he: (i} acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Townhome 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

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 Townhome Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

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

3.9 Bulk Rate Contracts. Without limitation on the generality of the Townhome Association powers set out in Section 3.6 hereinabove (except that during the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant), 21 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 the Townhome Association will have the power to enter into Bulk Rate Contracts at any time and from time to time. The Townhome Association may enter into Bulk Rate Contracts with any service providers chosen by the Townhome Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Declarant are the owners or participants,

e Contracts with any service providers chosen by the Townhome Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Declarant are the owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on such terms and provisions as the Townhome Board may determine in its sole and absolute discretion. The Townhome Association may, at its option and election, add the charges payable by such Owner under such Bulk Rate Contract to the Townhome Assessments (Regular Townhome Assessments or Individual Townhome Assessments, as the case may be) 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 Townhome Association will be entitled to collect such charges by exercising the same rights and remedies it would be entitled to exercise under this Development Area Declaration with respect to the failure by such Owner to pay Townhome 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 Development Area 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 Townhome 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 at law, equity or otherwise, terminate, in such manner as the Townhome Board deems appropriate, any utility service or other service provided at the cost of

to all other rights and remedies available at law, equity or otherwise, terminate, in such manner as the Townhome Board deems appropriate, any utility service or other service provided at the cost of the Townhome Asscciation and not paid for by such Owner (or Occupant 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 notice. The notice will include the office or street address where the Owner (or Occupant of such Owner's Lot) can make arrangements for payment of the bill and for re-connection or re-institution 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.

3.10 Protection of Declarant’s Interests. Despite any assumption of control of the Townhome Board by Owners other than Declarant, until the expiration or termination of the Development Period, the Townhome 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. Unless otherwise agreed to in advance and in writing by the Declarant, the Townhome 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 Townhome Board by Owners other than Declarant until

ed to continue the same level and quality of maintenance, operations and services as that provided immediately prior to assumption of control of the Townhome Board by Owners other than Declarant until the expiration or termination of the Development Period.

3.11 Right of Action by Townhome Association or Master Association. Neither the Townhome Association nor the Master Association shall have the power to institute, defend, 22 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 intervene in, settle or compromise litigation, arbitration or other proceedings: (i) in the name of or on behalf of any Owner (whether one or more); (ii) pertaining to a Claim, as such term is defined in Section 11.1 below, relating to the design or construction of Improvements on a Lot; or (iii) pertaining to a Claim, as such term is defined in Section 11.1 below, relating to the Area of Common Responsibility. This Section 3.11 may not be amended or modified without the written and acknowledged consent of the Declarant and Townhome Members entitled to cast at least one hundred percent (100%) of the total number of votes of the Townhome Association, which must be part of a Recorded amendment instrument.

ARTICLE 4 CONSTRUCTION RESTRICTIONS 4.1 Construction of Improvements. Unless prosecuted by Declarant, no Improvements of any kind may hereafter be placed, maintained, erected or constructed upon any portion of the Development Area unless approved in advance and in writing by the Lexington Estates Reviewer in accordance with the Covenant. Pursuant to Section 6.4 of the Covenant, the Lexington Estates Reviewer may adopt Design Guidelines applicable to the Development Area. All Improvements must strictly comply with the requirements of any

rsuant to Section 6.4 of the Covenant, the Lexington Estates Reviewer may adopt Design Guidelines applicable to the Development Area. All Improvements must strictly comply with the requirements of any adopted Design Guidelines unless a variance is obtained pursuant to the Covenant. The Design Guidelines may be supplemented, modified, amended, or restated by the Lexington Estates Reviewer as authorized by the Covenant.

4,2 Utility Lines, Unless otherwise approved by the Lexington Estates Reviewer, no sewer, drainage or utility lines or wires or other devices for the communication or transmission of electric current, power, or signals including telephone, television, microwave or radio signals, may be constructed, placed or maintained anywhere in or upon any portion of the Development Area other than within Structures or other buildings unless the same is contained in conduits or cables constructed, placed or maintained underground, concealed in or under Structures or other buildings, or within easements.

4.3 Garages. All garages, carports and other open automobile storage units must be approved in advance of construction by the Lexington Estates Reviewer. No garage may be permanently enclosed or otherwise used for habitation.

4.4 Fences. No fence may be constructed on the Development Area without the prior written consent of the Lexington Estates Reviewer. If adopted, all fences must strictly comply with the requirements of the Design Guidelines unless a variance is obtained pursuant to the Covenant.

4.5 Roofing. All roofing material must be approved in advance of construction by the Lexington Estates Reviewer. In addition, roofs of buildings may be constructed with “Energy Efficiency Roofing” with the advance written approval of the Lexington Estates

dvance of construction by the Lexington Estates Reviewer. In addition, roofs of buildings may be constructed with “Energy Efficiency Roofing” with the advance written approval of the Lexington Estates Reviewer. For the purpose of this Section, “Energy Efficiency Roofing” means shingles that are 23 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 designed primarily to: (i) be wind and hail resistant; (ii) provide heating and cooling efficiencies greater than those provided by customary composite shingles; or (iii) provide solar generation capabilities. The Lexington Estates Reviewer will not prohibit an Owner from installing Energy Efficient Roofing provided that the Energy Efficient Roofing shingles: (a) resemble the shingles used or otherwise authorized for use within the Development Area; (b) are more durable than, and are of equal or superior quality to, the shingles used or otherwise authorized for use within the community; and (c) match the aesthetics of adjacent property. An Owner who desires to install Energy Efficient Roofing will be required to comply with the architectural review and approval procedures set forth in the Townhome Documents. In conjunction with any such approval process, the Owner should submit information which will enable the Lexington Estates Reviewer to confirm the criteria set forth in this Section. Any other type of roofing material will be permitted only with the advance written approval of the Lexington Estates Reviewer.

4.6 HVAC Location. No air-conditioning apparatus may be installed on the ground in front of a residence or on the roof of any residence, unless otherwise approved in advance by the Lexington Estates Reviewer. No window air-conditioning apparatus or evaporative cooler

n the ground in front of a residence or on the roof of any residence, unless otherwise approved in advance by the Lexington Estates Reviewer. No window air-conditioning apparatus or evaporative cooler may be attached to any front wall or front window of a residence or at any other location where it would be visible from any street, any other residence, Common Area, or Special Common Area. All HVAC units must be screened in a manner approved in advance by the Lexington Estates Reviewer, or as otherwise set forth in the Design Guidelines.

4.7 Solar Energy Device. Solar Energy Devices may be installed with the advance written approval of the Lexington Estates Reviewer, in accordance with the procedures and requirements set forth below: 4.7.1 Application. To obtain approval of a Solar Energy Device, the Owner will provide the Lexington Estates Reviewer with the following information: (i) 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 (the “Solar Application”). A Solar Application may only be submitted by an Owner. The Solar Application must be submitted in accordance with the provisions of Article 6 of the Covenant.

4.7.2 Approval Process. The Lexington Estates Reviewer will review the Solar Application in accordance with the terms and provisions of Article 6 of the Covenant. The Lexington Estates Reviewer will approve a Solar Energy Device if the Solar Application complies with Section 4.7.3 below UNLESS the Lexington Estates Reviewer makes a written determination that placement of the Solar Energy Device, despite compliance with Section 4.7.3,

olar Application complies with Section 4.7.3 below UNLESS the Lexington Estates Reviewer makes a written determination that placement of the Solar Energy Device, despite compliance with Section 4.7.3, creates a condition that substantially interferes with the use and enjoyment of property within the Development by causing unreasonable discomfort or annoyance to persons of ordinary sensibilities. The Lexington Estates Reviewer'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 24 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 install a Solar Energy Device on property owned or maintained by the Master Association or property owned in common by Members of the Master Association must be approved in advance and in writing by the Master Board, and the Master Board need not adhere to this Section when considering any such request.

4.7.3 Approval Conditions. Unless otherwise approved in advance and in writing by the Lexington Estates Reviewer, each Solar Application and each Solar Energy Device to be installed in accordance therewith must comply with the following: (i) 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 is located on the roof of the residence, the Lexington Estates Reviewer may designate the location for placement unless the location proposed by the Owner increases the estimated annual energy production of the Solar

e roof of the residence, the Lexington Estates Reviewer may designate the location for placement 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 percent (10%) above the energy production of the Solar Energy Device if installed in the location designated by the Lexington Estates Reviewer. If the Owner desires to contest the alternate location proposed by the Lexington Estates Reviewer, the Owner should submit information to the Lexington Estates Reviewer which demonstrates that the Owner's proposed location meets the foregoing criteria. If the Solar Energy Device is 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.

(ii) 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 or black.

4.8 Rainwater Harvesting Systems. Rainwater Harvesting Systems may be installed with the advance written approval of the Lexington Estates Reviewer.

4.8.1 Application. To obtain Lexington Estates Reviewer approval of a Rainwater Harvesting System, the Owner must provide the Lexington Estates Reviewer with the following information: (i) the proposed installation location of the Rainwater Harvesting

ewer approval of a Rainwater Harvesting System, the Owner must provide the Lexington Estates Reviewer with the following information: (i) the proposed installation location of the Rainwater Harvesting System; and (ii) a description of the Rainwater Harvesting System, including the color, dimensions, manufacturer, and photograph or other accurate depiction (the “Rainwater Harvesting System Application”). A Rainwater Harvesting System Application may only be submitted by an Owner.

25 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 4.8.2. Approval Process. The decision of the Lexington Estates Reviewer will be made in accordance with Article 6 of the Covenant. Any proposal to install a Rainwater Harvesting System on property owned by the Master Association or property owned in common by Members of the Master Association must be approved in advance and in writing by the Master Board, and the Master Board need not adhere to this Section when considering any such request.

4.8.3 Approval Conditions. Unless otherwise approved in advance and in writing by the Lexington Estates Reviewer, each Rainwater Harvesting System Application and each Rainwater Harvesting System to be installed in accordance therewith must comply with the following: (i) The Rainwater Harvesting System will be consistent with the color scheme of the residence constructed on the Owner's Lot, as reasonably determined by the Lexington Estates Reviewer.

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

the front of the residence constructed on the Owner's Lot and any adjoining or adjacent street.

ically displayed on such a device.

the front of the residence constructed on the Owner's Lot and any adjoining or adjacent street.

(iv) There is sufficient area on the Owner’s Lot to install the Rainwater Harvesting System, as reasonably determined by the Lexington Estates Reviewer.

4.8.4 Guidelines. If the Rainwater Harvesting System is installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, Special Common Area, or another Owner's Lot, the Lexington Estates Reviewer may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System.

Accordingly, when submitting a Rainwater Harvesting System Application, such application should describe methods proposed by the Owner to shield the Rainwater Harvesting System from the view of any street, Common Area, Special Common Area, or another Owner's Lot.

When reviewing a Rainwater Harvesting System 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, Special Common Area, or another Owner's Lot, any additional requirements imposed by the Lexington Estates Reviewer 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 Lexington Estates Reviewer.

4.9 Xeriscaping. As part of the installation and maintenance of landscaping on an Owner's Lot, an Owner may submit plans for and install drought tolerant landscaping 26 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES]

the installation and maintenance of landscaping on an Owner's Lot, an Owner may submit plans for and install drought tolerant landscaping 26 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 (“Xeriscaping”) upon written approval by the Lexington Estates Reviewer. All Owners implementing Xeriscaping must comply with the following: 4.9.1 Application. Approval by the Lexington Estates Reviewer is required prior to installing Xeriscaping. To obtain the approval of the Lexington Estates Reviewer for Xeriscaping, the Owner must provide the Lexington Estates Reviewer 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 (the “Xeriscaping Application”). A Xeriscaping Application may only be submitted by an Owner unless the Owner's tenant provides written confirmation at the time of submission that the Owner consents to the Xeriscaping Application.

The Lexington Estates Reviewer is not responsible for: (i) errors or omissions in the Xeriscaping Application submitted to the Lexington Estates Reviewer for approval; (ii) supervising installation or construction to confirm compliance with an approved Xeriscaping Application or (iii) the compliance of an approved application with Applicable Law.

4.9.2 Approval Conditions. Unless otherwise approved in advance and in writing by the Lexington Estates Reviewer each Xeriscaping Application and all Xeriscaping to be installed in accordance therewith must comply with the following:

otherwise approved in advance and in writing by the Lexington Estates Reviewer each Xeriscaping Application and all Xeriscaping to be installed in accordance therewith must comply with the following: (i) The Xeriscaping must be aesthetically compatible with other landscaping in the community as reasonably determined by the Lexington Estates Reviewer. For purposes of this Section 4.9.2, “aesthetically compatible” will mean overall and long-term aesthetic compatibility within the community.

For example, an Owner's Lot plan may be denied if the Lexington Estates Reviewer determines that: (i) the proposed Xeriscaping would not be harmonious with already established turf and landscaping in the overall community; and/or (ii) 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.

(ii) No Owner may 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.

(iii) The Xeriscaping may not attract diseases and insects that are harmful to the existing landscaping on neighboring Lots, as reasonably determined by the Lexington Estates Reviewer.

4.9.3 Process. The decision of the Lexington Estates Reviewer will be made within a reasonable time, or within the time period otherwise required by the specific 27 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 provisions in the Design Guidelines, if adopted, or other provisions in the Documents that govern the review and approval of improvements. A Xeriscaping Application submitted to

-1657-1065v.3 57160-13 provisions in the Design Guidelines, if adopted, or other provisions in the Documents that govern the review and approval of improvements. A Xeriscaping Application submitted to instal! Xeriscaping on property owned by the Master Association or property owned in common by Members of the Master Association will not be approved. Any proposal to install Xeriscaping on property owned by the Master Association or property owned in common by Members of the Master Association must be approved in advance and in writing by the Master Board, and the Master Board need not adhere to the requirements set forth in this Section 4.9 when considering any such request.

4.94 Approval. Each Owner is advised that if the Xeriscaping Application is approved by the Lexington Estates Reviewer installation of the Xeriscaping must: (i) strictly comply with the Xeriscaping 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 Xeriscaping Application, the Lexington Estates Reviewer may require the Owner to: (i) modify the Xeriscaping Application to accurately reflect the Xeriscaping installed on the property; or (ii) remove the Xeriscaping and reinstall the Xeriscaping in accordance with the approved Xeriscaping Application. Failure to install Xeriscaping in accordance with the approved Xeriscaping Application or an Owner's failure to comply with the post-approval requirements constitutes a violation of the Covenant and may subject the Owner to fines and penalties. Any requirement imposed by the Lexington Estates Reviewer to resubmit a Xeriscaping Application or remove and relocate Xeriscaping in

of the Covenant and may subject the Owner to fines and penalties. Any requirement imposed by the Lexington Estates Reviewer to resubmit a Xeriscaping Application or remove and relocate Xeriscaping in accordance with the approved Xeriscaping Application will be at the Owner's sole cost and expense.

ARTICLE 5 COVENANT FOR TOWNHOME ASSESSMENTS 5.1 Purpose of Townhome Assessments. The Townhome Association will use Townhome Assessments for the general purposes of preserving and enhancing the Development Area, and for the benefit of Owners and Occupants, including but not limited to maintenance of real and personal property, management, and operation of the Townhome Association, and any expense reasonably related to the purposes for which the Townhome Association was formed. If made in good faith, the Townhome Board’s decision with respect to the use of Townhome Assessments is final.

5.2 Townhome Assessments.

5.2.1 Established by Townhome Board. Townhome Assessments established by the Townhome Board pursuant to the provisions of this Article 5 will be levied against each Lot in amounts determined pursuant to Section 5.8 below. The total amount of Townhome Assessments will be determined by the Townhome Board in accordance with the terms of this Article 5.

28 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 5.2.2 Personal Obligation; Lien. Each Townhome 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 Townhome Assessment is levied and will be secured by a lien hereby granted and conveyed by Declarant to the Townhome Association against each such Lot and all Improvements thereon (such lien, with respect to any Lot not in

levied and will be secured by a lien hereby granted and conveyed by Declarant to the Townhome Association against each such Lot and all Improvements thereon (such lien, with respect to any Lot not in existence on the date hereof, will be deemed granted and conveyed at the time that such Lot is created). The Townhome Association may enforce payment of such Townhome Assessments in accordance with the provisions of this Article.

5.2.3. Declarant Subsidy. Declarant may, but is not obligated to, reduce Townhome Assessments which would otherwise be levied against Lots for any fiscal year by the payment of a subsidy to the Townhome Association. Any subsidy paid to the Townhome 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 Townhome Association in future years.

5.2.4 Master Association. Each Lot is subject to the terms and provisions of the Covenant and accordingly, each Owner will also be a mandatory Member of the Master Association and be required to pay assessments to the Master Association in accordance with the Covenant.

5.3 Maintenance Fund. The Townhome Board will establish a maintenance fund into which will be deposited all monies paid to the Townhome Association and from which disbursements will be made in performing the functions of the Townhome Association under this Development Area Declaration.

54 Regular Townhome Assessments. Prior to the beginning of each fiscal year, the Townhome Board will prepare a budget for the purpose of determining amounts sufficient to pay the estimated net expenses of the Townhome Association (the “Regular Townhome

ing of each fiscal year, the Townhome Board will prepare a budget for the purpose of determining amounts sufficient to pay the estimated net expenses of the Townhome Association (the “Regular Townhome Assessments”) which sets forth: (i) an estimate of the expenses to be incurred by the Townhome Association during such year in performing its functions and exercising its powers under this Development Area Declaration, including, but not limited to, the cost of all management, repair and maintenance; and (ii) an estimate of the amount needed to maintain a reasonable provision for contingencies and an appropriate replacement reserve, and due consideration to any expected income and any surplus from the prior year’s fund, Regular Townhome Assessments sufficient to pay such estimated net expenses will then be levied at the level set by the Townhome Board in its sole and absolute discretion, and the Townhome 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 Individual Townhome Assessment by any Owner, the Townhome Association may at any time, and from time to time, levy further Regular Townhome Assessments in the same manner. All such Regular Townhome Assessments will be due and payable to the Townhome Association at the beginning of the fiscal year or during the fiscal year in equal monthly installments on or before the first day of 29 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 each month, or in such other manner as the Townhome Board may designate in its sole and absolute discretion.

5.5 Working Capital Townhome Assessment. Each Owner (other than Declarant)

1065v.3 57160-13 each month, or in such other manner as the Townhome Board may designate in its sole and absolute discretion.

5.5 Working Capital Townhome Assessment. Each Owner (other than Declarant) of a Lot will pay a one-time working capital assessment (the “Working Capital Townhome Assessment”) to the Townhome Association in such amount as may be determined by the Declarant, until expiration or termination of the Development Period, and the Townhome Board thereafter. Such Working Capital Townhome Assessment need not be uniform among all Lots, and the Declarant or the Townhome Board, as applicable, is expressly authorized to establish Working Capital Townhome Assessments of varying amounts depending on the size, use and general character of the Lots. The levy of any Working Capital Townhome Assessment will be effective only upon the Recordation of a written notice, signed by Declarant or a duly authorized officer of the Townhome Association, setting forth the amount of the Working Capital Townhome Assessment and the Lots to which it applies.

Notwithstanding the foregoing provision, the following transfers will not be subject to the Working Capital Townhome Assessment: (i) foreclosure of a deed of trust lien, tax lien, or the Townhome Association’s assessment lien; (ii) transfer to, from, or by the Townhome Association; (iii) voluntary transfer by an Owner to one or more co-owners, or to the Owner's spouse, child, or parent. Additionally, an Owner who {a) is a Homebuilder; or (b) acquires a Lot for the purpose of resale to a Homebuilder (a “Development Owner”) will not be subject to the Working Capital Townhome Assessment; however, the Working Capital Townhome Assessment will be payable by any Owner who acquires a Lot from a Homebuilder or

velopment Owner”) will not be subject to the Working Capital Townhome Assessment; however, the Working Capital Townhome Assessment will be payable by any Owner who acquires a Lot from a Homebuilder or Development Owner for residential living purposes or by any Owner who: (I) acquires a Lot and is not in the business of constructing single-family residences for resale to a third party; or (II) who acquires the Lot for any purpose other than constructing a single-family residence thereon for resale to a third party. In the event of any dispute regarding the application of the Working Capital Townhome Assessment to a particular Owner, the Declarant during the Development Period, and thereafter the Townhome Board's, determination regarding the application of the exception will be binding and conclusive without regard to any contrary interpretation of this Section 5.5. The Working Capital Townhome Assessment will be in addition to, not in lieu of, any other Townhome Assessments levied in accordance with this Article 5 and will not be considered an advance payment of such Townhome Assessments. The Working Capital Townhome Assessment hereunder will be due and payable by the transferee to the Townhome 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 Townhome Board, will have the power to waive the payment of any Working Capital Townhome Assessment attributable to a Lot (or all Lots) by the Recordation of a waiver notice, which waiver may be temporary or permanent.

5.6 Special Townhome Assessments. In addition to the Regular Townhome

Assessment attributable to a Lot (or all Lots) by the Recordation of a waiver notice, which waiver may be temporary or permanent.

5.6 Special Townhome Assessments. In addition to the Regular Townhome Assessments provided for above, the Townhome Board may levy special Townhome 30 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Assessments (the “Special Townhome Assessments”) whenever in the Townhome Board's opinion such Special Townhome Assessments are necessary to enable the Townhome Board to carry out the functions of the Townhome Association under the Townhome Documents. The amount of any Special Townhome Assessments will be at the reasonable discretion of the Townhome Board.

5.7 Individual Townhome Assessments. In addition to any other Townhome Assessments, the Townhome Board may levy an individual assessment (the “Individual Townhome Assessment”) against an Owner and the Owner's Lot. Individual Townhome Assessments may include, but are not limited to, the following: (i) interest, late charges, and collection costs on delinquent Townhome Assessments; (ii) reimbursement for costs incurred in bringing an Owner or the Owner’s Lot into compliance with the Townhome Documents; (iii) fines for violations of the Townhome Documents; (iv) transfer-related fees and resale certificate fees; (v) fees for estoppel letters and project documents; and (vi) reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner's guests, invitees or Occupants of the Owner’s Lot.

5.8 Amount of Assessment.

5.8.1. Townhome Assessments to be Levied. The Townhome Board will levy Townhome Assessments against each “Townhome Assessment Unit” (as defined in Section 5.8.2

Owner’s Lot.

5.8 Amount of Assessment.

5.8.1. Townhome Assessments to be Levied. The Townhome Board will levy Townhome Assessments against each “Townhome Assessment Unit” (as defined in Section 5.8.2 below). Unless otherwise provided in this Development Area Declaration, Townhome Assessments levied pursuant to Section 5.4 and Section 5.6 will be levied uniformly against each Townhome Assessment Unit.

5.8.2 Townhome Assessment Unit. Each Lot will constitute one “Townhome Assessment Unit” unless otherwise provided in Section 5.8.3.

5.8.3. Declarant Exemption. Notwithstanding anything in this Development Area Declaration to the contrary, no Townhome Assessments will be levied upon Lots owned by Declarant.

5.8.4 Other Exemptions. Declarant may, in its sole discretion, elect to: (i)exempt any un-platted or unimproved portion of the Development Area or Lot from Townhome Assessments; (ii) delay the levy of Townhome Assessments against any un-platted, unimproved or improved portion of the Development Area or Lot; or (iii) reduce the levy of Townhome Assessments against any un-platted, unimproved or improved portion of the Development Area or Lot. In the event Declarant elects to delay or reduce Townhome Assessments pursuant to this Section, the duration of the delay or the amount of the reduction will be set forth in a Recorded written instrument. Declarant may terminate, extend or modify any delay or reduction set forth in a previously Recorded instrument by the Recordation of a replacement instrument.

31 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES| 4852-1657-1065v.3 57160-13 5.9 Late Charges. If any Townhome Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Townhome

TOWNHOMES| 4852-1657-1065v.3 57160-13 5.9 Late Charges. If any Townhome Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Townhome Board, at the Townhome Board’s election at any time and from time to time, to pay a late charge in such amount as the Townhome Board may designate, and the late charge (and any reasonable handling costs) will be a charge upon the Lot owned by such Owner, collectible in the manner as provided for collection of Townhome Assessments, including foreclosure of the lien against such Lot; provided, however, such charge will never exceed the maximum charge permitted under Applicable Law.

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

5.11 Townhome Assessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article 5 is, together with late charges as provided in Section 5.9 and interest as provided in Section 5.10 hereof and all costs of collection, including

sums assessed in the manner provided in this Article 5 is, together with late charges as provided in Section 5.9 and interest as provided in Section 5.10 hereof and all costs of collection, including attorney's fees as herein provided, are secured by the continuing Townhome Assessment lien granted to the Townhome Association pursuant to Section 5.2.2 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 and governmental assessment liens; (ii) liens for Master Assessments; and (iii) all sums secured by a first mortgage Recorded lien or Recorded first deed of trust lien, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question; provided that, in the case of subparagraph (iii) above, such Mortgage was Recorded, before the delinquent Townhome Assessment was due. The Townhome Association will have the power to subordinate the aforesaid Townhome Assessment lien to any other lien.

Such power will be entirely discretionary with the Townhome Board, and such subordination may be signed by an officer of the Townhome Association. The Townhome Association may, at its option and without prejudice to the priority or enforceability of the Townhome Assessment lien granted hereunder, prepare a written notice of Townhome 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 officers of the Townhome Association and will be Recorded. Each Owner, by accepting a deed or ownership interest to a

by such lien and a description of the Lot. Such notice may be signed by one of the officers of the Townhome Association and will be Recorded. Each Owner, by accepting a deed or ownership interest to a Lot subject to this Development Area Declaration will be deemed conclusively to have granted a power of sale to the Townhome Association to secure and enforce the Townhome Assessment lien granted hereunder. The Townhome Assessment liens and rights to foreclosure thereof will be in addition to and not in substitution of any other rights and remedies the Townhome 32 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Association may have pursuant to Applicable Law and this Development Area Declaration, including the rights of the Townhome Association to institute suit against such Owner personally obligated to pay the Townhome 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 Townhome 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 Townhome Association will report to said Mortgagee any unpaid Townhome 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 of any lien superior to the Townhome Assessment lien, the lien for any Townhome Assessments that were due and payable before the foreclosure sale

Lot; except, however, that in the event of foreclosure of any lien superior to the Townhome Assessment lien, the lien for any Townhome Assessments that were due and payable before the foreclosure sale will be extinguished, provided that past-due Townhome 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 Townhome 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 5.11, the Townhome Association will upon the request of the Owner execute a release of lien relating to any lien for which written notice has been filed as provided above, except in circumstances in which the Townhome Association has already foreclosed such lien. Such release will be signed by an officer of the Townhome Association. In addition to the lien hereby retained, in the event of nonpayment by any Owner of any Townhome Assessment and after the lapse of at least twelve (12) days since such payment was due, the Townhome Association may, upon five (5) days’ prior written notice (which may run concurrently with such 12 day period) to such Owner, in addition to all other rights and remedies available pursuant to Applicable Law, equity or otherwise, terminate, in such manner as the Townhome Board deems appropriate, any utility or cable services, provided through the Townhome Association and not paid for directly by an Owner or occupant to the utility or service provider. Such notice will

Board deems appropriate, any utility or cable services, provided through the Townhome Association and not paid for directly by an Owner or occupant to the utility or service 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 Owner's tenant can make arrangements for payment of the bill and for reconnection of service. Any utility or cable service will not be disconnected or terminated 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 Townhome Assessments thereafter becoming due or from the lien associated therewith.

If an Owner conveys its Lot and on the date of such conveyance Townhome Assessments against the Lot remain unpaid, or said Owner owes other sums or fees under this Development Area Declaration to the Townhome Association, the Owner will pay such amounts to the Townhome Association out of the sales price of the Lot, and such sums will be paid in 33 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 — preference to any other charges against the Lot other than liens superior to the Townhome Assessment liens 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

r to the Townhome Assessment liens 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 Townhome Board may adopt an administrative transfer fee to cover the administrative expenses associated with updating the Townhome Association’s records upon the transfer of a Lot to a third party; provided, however, that no administrative transfer fee will be due upon the transfer of a Lot from Declarant to a third party.

5.12 Exempt Property. The following area within the Development Area will be exempt from the Townhome Assessments provided for in this Article: (i) All area dedicated and accepted by a public authority, by the Recordation of an appropriate document; (ii) The Common Area and the Special Common Area; and (iii) | Any portion of the Development Area owned by Declarant.

5.13 Fines and Damages Townhome Assessment.

5.13.1 Townhome Board Assessment. The Townhome Board may assess fines against an Owner for violations of the Townhome Documents committed by such Owner, an Occupant or an Owner's or Occupant’s guests, agents or invitees pursuant to the Fine and Enforcement Policy contained in the Townhome Community Manual. Any fine and/or charge for damage levied in accordance with this Section 5.13 shall be considered an Individual Townhome Assessment pursuant to this Development Area Declaration. Each day of violation may be considered a separate violation if the violation continues after written notice to the Owner. The

vidual Townhome Assessment pursuant to this Development Area Declaration. Each day of violation may be considered a separate violation if the violation continues after written notice to the Owner. The Townhome Board may assess damage charges against an Owner for pecuniary loss to the Townhome Association from property damage or destruction of any Improvements caused by the Owner, the Occupant or their guests, agents, or invitees. The Manager shall have authority to send notices to alleged violators, informing them of their violations and asking them to comply with the Townhome Documents and/or informing them of potential or probable fines or damage assessments. The Townhome Board may from time to time adopt a schedule of fines.

5.13.2. Lien Created. The payment of each fine and/or damage charge levied by the Townhome Board against the Owner of a Lot is, together with interest as provided in Section 5.10 hereof and all costs of collection, including attorney’s fees as herein provided, secured by the lien granted to the Townhome Association pursuant to Section 5.2.2 of this Development Area Declaration. The fine and/or damage charge shall be considered a Townhome Assessment for the purpose of this Article and shall be enforced in accordance with the terms and provisions governing the enforcement of Townhome Assessments pursuant to this Article.

34 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 5.14 Collection of Master Assessments Levied Pursuant to the Covenant. In accordance with the Covenant, unless the Master Association elects otherwise, the Townhome Association will collect from each Owner the allocated share attributable to such Owner's Lot of

Covenant. In accordance with the Covenant, unless the Master Association elects otherwise, the Townhome Association will collect from each Owner the allocated share attributable to such Owner's Lot of Master Assessments. The Master Assessments shall be paid by each Owner of a Lot together with the Regular Townhome Assessment levied hereunder by the Townhome Association. If, for any reason, the Townhome Association fails to collect the Master Assessments in conjunction with Regular Townhome Assessments, then the Townhome Association shall collect the Master Assessments from each Owner, and remit the Master Assessments to the Master Association in such manner as the Master Association may deem proper; provided, however, that, in any event, each Master Assessment will be remitted to the Master Association prior to the time when payment thereof is required by the terms and provisions of the Covenant.

5.15 Lien Rights Under the Covenant. In addition to the lien rights granted to the Townhome Association pursuant to the terms and provisions of this Development Area Declaration, in accordance with Article 5 of the Covenant, each Owner, by accepting an interest in or title to a Lot, whether or not it is so expressed in the instrument of conveyance, covenants and agrees to pay Master Assessments in accordance with the terms and provisions of the Covenant. Each Master Assessment is a charge on the Lot and is secured by a continuing lien on the Lot as set forth in the Covenant. Each Owner, and each prospective Owner, is placed on notice that his title may be subject to the continuing lien for Master Assessments attributable to a period prior to the date the Owner purchased his Lot. An express lien on each Lot has been

laced on notice that his title may be subject to the continuing lien for Master Assessments attributable to a period prior to the date the Owner purchased his Lot. An express lien on each Lot has been granted and conveyed by the Declarant under the Covenant to the Master Association to secure the payment of the Master Assessments. Each Owner is advised to review the Covenant for more information concerning the liens granted to secure payment of the Master Assessments.

ARTICLE 6 MAINTENANCE AND REPAIR OBLIGATIONS 6.1 Overview. Generally, each Owner maintains his or her Lot and the Structure and Dwelling located thereon. If any Owner fails to maintain his or her Lot and the Structure and Dwelling located thereon, the Townhome Association may perform the work at the Owner's expense. This Development Area Declaration provides for designating portions of the Structures, Dwellings and/or Lots to the Area of Common Responsibility. Notwithstanding any provision contained herein to the contrary, the Area of Common Responsibility is maintained by the Townhome Association and not the Owner. On the date of this Development Area Declaration, the initial designation of components of Structures, Dwellings, and Lots included within the Area of Common Responsibility is attached hereto as Exhibit “A”.

6.2 Townhome Association Maintains. The Townhome Association’s maintenance obligations will be discharged when and how the Townhome Board deems appropriate. Unless otherwise provided in this Development Area Declaration, the Townhome Association 35 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 maintains, repairs and replaces the portions of the Development Area listed below, regardless of whether the portions are on an Owner's Lot: (i)

AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 maintains, repairs and replaces the portions of the Development Area listed below, regardless of whether the portions are on an Owner's Lot: (i) the Area of Common Responsibility; (ii) any real and personal property owned by the Townhome Association; (iii) Perimeter Fencing; and (iv) any portion of the Development Area, any item, easements or services, the maintenance of which is assigned to the Townhome Association by this Development Area Declaration or in accordance with any Recorded easement or Recorded plat of the Development Area.

The Townhome 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 Development Area Declaration; (ii) such maintenance responsibility is otherwise assumed by or assigned to an Owner; 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 Townhome Association may reserve or assume the right or obligation to continue to perform all or any portion of its maintenance responsibilities, if the Townhome Board determines that such maintenance is necessary or desirable.

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

le expense of such Owner or Occupant and the Owner and Occupant shall not be entitled to reimbursement from the Townhome Association even if the Townhome Association accepts the maintenance or repair.

The Townhome Association shall not be liable for injury or damage to person or property caused by the elements or by the Owner or Occupant of any Lot or any other person or resulting from any utility, rain, snow or ice which may leak or flow from any pipe, drain, conduit, appliance or equipment which the Townhome Association is responsible to maintain hereunder. The Townhome Association shall not be liable to any Owner or Occupant of any Lot for loss or damage, by theft or otherwise, of any property, which may be stored in or upon any Lot. The Townhome Association shall not be liable to any Owner or Occupant, for any damage or injury caused in whole or in part by the Townhome Association's failure to discharge its responsibilities under this Section where such damage or injury is not a foreseeable, natural result of the Townhome Association's failure to discharge its responsibilities. No diminution or abatement of Townhome Assessments shall be claimed or allowed by reason of any alleged failure of the Townhome Association to take some action or perform some function required to be taken or performed by the Townhome Association under this Development Area Declaration 36 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 or for inconvenience or discomfort arising from the making of repairs or Improvements which are the responsibility of the Townhome Association or from any action taken by the Townhome Association to comply with any law ordinance or with any order or directive of any municipal or other governmental authority.

ility of the Townhome Association or from any action taken by the Townhome Association to comply with any law ordinance or with any order or directive of any municipal or other governmental authority.

6.3 Area of Common Responsibility. The Townhome 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 Townhome Association as a common expense of the Townhome Association. 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 of the Townhome Association and assessed uniformly against all Lots as a Regular Townhome 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 Townhome Assessments.

6.3.1 Easement. The Townhome Association is hereby granted an easement over and across each Structure, Lot and Dwelling to the extent reasonably necessary or convenient for the Townhome 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, 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 Townhome Association damages any Improvements located within a Structure, Lot or Dwelling in exercising the easement granted hereunder, the Townhome Association will be required to restore such Improvements to the condition which existed prior to any such

ithin a Structure, Lot or Dwelling in exercising the easement granted hereunder, the Townhome Association will be required to restore such Improvements to the condition which existed prior to any such damage, at the Townhome Association’s expense, within a reasonable period of time not to exceed thirty (30) days after the date the Townhome Association is notified in writing of the damage by the Owner of the damaged Improvements.

6.3.2 Change in Designation. The Townhome 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 Townhome 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 addition must be approved by a majority of the Owners in the Townhome Association. 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.

6.4 Perimeter Fencing.

37 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES} 4852-1657-1065v.3 57160-13 6.4.1 Maintenance of Perimeter Fencing. The Townhome Association will repair, replace and/or maintain the Perimeter Fencing. Repair shall include sealing and/or re-

WNHOMES} 4852-1657-1065v.3 57160-13 6.4.1 Maintenance of Perimeter Fencing. The Townhome Association will repair, replace and/or maintain the Perimeter Fencing. Repair shall include sealing and/or restaining the Perimeter Fence. Accordingly, the Townhome Association is hereby granted an easement over and across each Lot to the extent reasonably necessary or convenient for the Townhome Association or its designated contractor to perform the maintenance and repair services necessary to seal, stain, repair, replace and/or maintain the Perimeter Fencing located within or adjacent to a Lot. Access to each Lot is limited to Monday through Friday, between the hours of 7 a.m. until 6 p.m. and then only in conjunction with actual performance of maintenance and repair services on the Perimeter Fencing. If the Townhome Association damages any Improvements located within a Lot in exercising the easement granted hereunder, the Townhome Association will be required to restore such Improvements to the condition which existed prior to any such damage, at the Townhome Association's expense, within a reasonable period of time not to exceed thirty (30) days after the date the Townhome Association is notified in writing of the damage by the Owner of the damaged Improvements.

If original construction included sealing and/or staining of the fence then the Townhome Association will on a regular cycle of every four to six (4-6) years, at the sole discretion of the Townhome Board, cause the Perimeter Fencing to be sealed and/or stained. The cost of all maintenance and repair services, including the cost of sealing and staining the Perimeter Fencing, will be a common expense of the Townhome Association.

6.5 Inspection Obligations.

ed. The cost of all maintenance and repair services, including the cost of sealing and staining the Perimeter Fencing, will be a common expense of the Townhome Association.

6.5 Inspection Obligations.

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

6.5.2. Schedule of Inspections. Such inspections shall take place in accordance with prudent business practices. The inspectors shall provide written reports of their inspections to the Townhome Association promptly following completion thereof. The written reports shall identify any items of maintenance or repair that either require current action by the Townhome Association or will need further review and analysis. The Townhome Board shall report the contents of such written reports to the Townhome Members at the next meeting of the Townhome Members following receipt of such written reports or as soon thereafter as reasonably practicable and shail include such written reports in the minutes of the Townhome Association. Subject to the provisions of the Declaration below, the Townhome 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.

38 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13

, or otherwise pursued in accordance with prudent business practices and the recommendations of the inspectors.

38 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 6.5.3 Notice to Declarant. During the Development Period, the Townhome 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.

6.6 Owner Responsibility. This Development Area Declaration contemplates that the Townhome Association will maintain components of the Structures, Dwellings and Lots.

Every Owner is responsible for the maintenance, repair and replacement of all Improvements located on such Owner's Lot, unless such Improvements are maintained by the Townhome 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) 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; (ii) to not do any work or fail to do any work which, in the reasonable opinion of the Townhome Board, would materially jeopardize the soundness and safety of the Development Area, reduce the value thereof, or impair any easement or real property right thereto; (iii) to be responsible for his own willful or negligent acts and those of the Occupant’s family, guests, agents, employees, or contractors when those acts

any easement or real property right thereto; (iii) to be responsible for his own willful or negligent acts and those of the Occupant’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 Development Area for which the Townhome Association has maintenance and/or insurance responsibility; (iv) to perform his or her responsibilities in such manner so as not to unreasonably disturb other Owners and Occupants; (v) to promptly report to the Townhome Association or its agent any defect or need for repairs for which the Townhome Association is responsible; (vi) 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 Townhome 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 Townhome 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 Townhome Assessment.

39 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 SEE EXHIBIT “A” IF IT’S NOT AN AREA OF COMMON RESPONSIBILITY, THEN IT’S THE OWNER’S INDIVIDUAL RESPONSIBILITY.

6.7 Yard Maintenance. The Townhome Association is obligated to maintain, as an Area of Common Responsibility, all yard space on a Lot, whether or not enclosed by a fence serving the Lot (the “Yard Area”). Shrubs and trees may not be planted, and no modifications

maintain, as an Area of Common Responsibility, all yard space on a Lot, whether or not enclosed by a fence serving the Lot (the “Yard Area”). Shrubs and trees may not be planted, and no modifications may be made to the Yard Area, without the prior written approval of the Townhome Board.

Specifically without limitations, the Association must: (i) mow the lawns and grounds at regular intervals on the Yard Area; and (ii) prevent lawn weeds or grass from exceeding six inches (6") in height on the Yard Area.

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

ARTICLE 7 INSURANCE 7.1 ‘Insurance - Townhome Association. The Townhome Association shall comply with the following insurance requirements.

7.1.1. The Townhome Association shall obtain property insurance on the Dwellings insuring against all risks of physical loss commonly insured against, including fire and extended coverage, in a total amount of at least 100% of the replacement costs. Such coverage will include any wall coverings, floor coverings, appliances, or fixtures originally installed by the Declarant or Homebuilder, but will not include any Improvements or upgrades (including wall coverings and fixtures) installed by an Owner (other than Declarant). Such coverage will also exclude furnishings and other personal property within the Dwelling.

7.1.2. The Townhome Association shall keep a policy or policies of (i) liability

er (other than Declarant). Such coverage will also exclude furnishings and other personal property within the Dwelling.

7.1.2. The Townhome Association shall keep a policy or policies of (i) liability insurance insuring the Townhome Board, officers and employees of the Townhome Association against any claims, losses, liabilities, damages or causes of action arising out of, or in connection with, or resulting from any act done or omission to act by any such person or entities, including but not limited to directors and officer's liability insurance, errors and omissions insurance, indemnity bonds, or other insurance the Townhome Board deems advisable, (ii) workmen's compensation as required by Applicable Law, and (iii) such other insurance as deemed 40 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 necessary by the Townhome Board. The Townhome Association may maintain blanket fidelity coverage for any person who handles or is responsible for funds held or administered by the Townhome Association, whether or not the person is paid for his services.

7.1.3 Insurance policies carried pursuant to this Section, and to the extent available, must also provide that: (i) Each Owner is an insured person under the policy with respect to liability arising out of the person's membership in the Townhome Association; (ii) The insurer waives its right to subrogation under the policy against an Owner; Owner's authority on behalf of the Townhome Association, will void the policy or be a condition to recovery under the policy; and (iv) If, at the time of a loss under the policy, there is other insurance in the name of an Owner covering the same property covered by the policy, the

be a condition to recovery under the policy; and (iv) If, at the time of a loss under the policy, there is other insurance in the name of an Owner covering the same property covered by the policy, the Townhome Association's policy provides primary insurance.

7.14 A claim for any loss covered by the insurance required by Section 7.1.1 must be submitted by and adjusted with the Townhome Association. Each Owner irrevocably appoints the Townhome Association, acting through the Townhome Board, as his trustee to negotiate, receive, administer, and distribute the proceeds of any claim against an insurance policy maintained by the Townhome Association. The Townhome Association shall hold insurance proceeds in trust for the Owners and lienholders as their interests may appear.

Subject to Section 7.1.1, the proceeds paid under a policy must be disbursed first for the repair or restoration of the damaged Dwellings or Structures, and Owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the Development Area has been completely repaired or restored.

7.1.5 An insurance policy issued to the Townhome Association does not prevent an Owner from obtaining insurance for the Owner's own benefit.

7.1.6 The insurer issuing the policy may not cancel or refuse to renew it less than thirty (30) days after written notice of the proposed cancellation or nonrenewal has been mailed to the Townhome Association.

7.1.7 Except as provided by this section, any portion of a Dwelling or Structure for which insurance is required that is damaged or destroyed shall be promptly repaired or replaced by the Townhome Association unless replacement would be illegal under

ion of a Dwelling or Structure for which insurance is required that is damaged or destroyed shall be promptly repaired or replaced by the Townhome Association unless replacement would be illegal under any Applicable Law. The cost of repair or replacement in excess of the insurance proceeds shall be a common expense of the Townhome Association, and the Townhome Board may levy a 4] LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Townhome Assessment to pay the excess costs or expenses in accordance with Article 5. Any insurance proceeds attributable to a damaged Dwelling or Structure shall be used to restore the damaged Dwelling or Structure to a condition compatible with the remainder of the Dwellings or Structures. If a Dwelling or Structure is not repaired or replaced, the insurance proceeds attributable to Dwelling or Structure that are not rebuilt shall be distributed to the Owners of that Dwelling or Structure, or to their mortgagees, as their interests may appear.

7.1.8 Even if the Townhome Association and the Owners have adequate amounts of recommended and required coverage, the Development Area may experience a loss that is not covered by insurance. In such event that a loss is not covered by insurance, the Owner is responsible for restoring the Owner’s Dwelling or Structure.

71.9 The Townhome Association, the Townhome Board, and the Townhome Association’s officers and managers, will not be liable for failure to obtain any coverage required by this Article or for any loss or damage resulting from such failure if the failure is due to the unavailability of a particular coverage from reputable insurance companies, or if the coverage is available only at demonstrably unreasonable cost.

7.2 Owner's Responsibility for Insurance.

due to the unavailability of a particular coverage from reputable insurance companies, or if the coverage is available only at demonstrably unreasonable cost.

7.2 Owner's Responsibility for Insurance.

7.2.1 Insurance by Owners. The Owner of a Dwelling is encouraged to procure insurance covering the interior of the Dwelling, including replacement of interior improvements and betterment coverage to insure improvements the Owner may make to the Dwelling, commonly referred to as HO-6 insurance or its equivalent. The Townhome Association does not insure improvements and betterments made by the Owner to a Dwelling.

The Owner of a Dwelling is also encouraged to obtain Loss Assessment coverage, as well as general liability insurance covering the Owner's Lot for bodily injury and property damage.

Notwithstanding the foregoing, the Townhome Board may establish additional minimum insurance requirements, including types and minimum amounts of coverage, to be individually obtained and maintained by Owners if the insurance is deemed necessary or desirable by the Board to reduce potential risks to the Townhome Association or other Owners.

7.2.2 Association Does Not Insure. The Townhome 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 Development Area, including furnishings, vehicles, and stored items. THE TOWNHOME ASSOCIATION STRONGLY RECOMMENDS THAT EACH OWNER AND OCCUPANT PURCHASE AND MAINTAIN INSURANCE ON HIS PERSONAL BELONGINGS.

Dwelling, a Structure, or any Improvement thereon is required as a result of an insured loss, the Townhome Board may levy an Individual Townhome Assessment, in the amount of the

S PERSONAL BELONGINGS.

Dwelling, a Structure, or any Improvement thereon is required as a result of an insured loss, the Townhome Board may levy an Individual Townhome Assessment, in the amount of the insurance deductible, against the Owner or Owners who would be responsible for the cost of 7.3 Owner's Liability for Insurance Deductible. If repair or restoration of a 42 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 the repair or reconstruction in the absence of insurance. Notwithstanding the foregoing, if the Townhome Board reasonably determines that the loss is the result of the negligence or willful misconduct of an Owner, then the Townhome Board may levy an Individual Townhome Assessment against the Owner and his Lot for the amount of the deductible that is attributable to the act or omission.

ARTICLE 8 EASEMENTS 8.1 Townhome 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 Townhome Association an easement of access, maintenance and entry over, across, under, and through the Development Area, including without limitation, each Lot and each Dwelling and all Improvements thereon for the following purposes: (Qt) to perform inspections and/or maintenance that is permitted or required of the Townhome Association by the Townhome Documents or by Applicable Law; (ii) to perform maintenance that is permitted or required of the Owner by the Townhome Documents or by Applicable Law, if the Owner fails or refuses to perform such maintenance; (iii) to enforce the Townhome Documents; (iv) to exercise self-help remedies permitted by the Townhome Documents or by Applicable Law;

e Law, if the Owner fails or refuses to perform such maintenance; (iii) to enforce the Townhome Documents; (iv) to exercise self-help remedies permitted by the Townhome Documents or by Applicable Law; (v) to respond to emergencies; (vi) to grant easements to utility providers as may be necessary to install, maintain, and inspect utilities serving any portion of the Development Area; and (vii) to perform any and all functions or duties of the Townhome Association as permitted or required by the Townhome Documents or by Applicable Law.

8.2 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, Improvements, Dwelling, or condition that may exist on any Lot or other portion of the Development Area, and 43 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 a perpetual nonexclusive easement of access throughout the Development 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 written and acknowledged consent. In support of this reservation, each Owner, by accepting an interest

n may not be construed to create a duty for Declarant, and may not be amended without Declarant’s 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 Development Area, including without limitation, each Lot, Structure, and Dwelling, and all Improvements thereon for the purposes contained in this Section.

8.3 Private Utility Lines. Utility lines from each meter located on a Structure that exclusively serve a Dwelling are private utility lines (each a “Private Utility Line” and collectively, the “Private Utility Lines”) that the Owner of the Dwelling is required to maintain, repair and replace, if necessary. Neither the Townhome Association, Declarant, nor the utility company providing utility services will maintain, repair or replace Private Utility Lines. EACH OWNER IS ADVISED THAT THE UTILITY LINES SERVING MORE THAN ONE DWELLING MAY BE LOCATED ON AN OWNER’S LOT. PRIOR TO DIGGING ON THE OWNER’S LOT, THE OWNER MUST DETERMINE THE LOCATION OF UTILITY LINES.

FAILURE TO LOCATE UTILITY LINES BEFORE DIGGING MAY CAUSE SERIOUS INJURY TO PERSON OR PROPERTY. CALL 811 AT LEAST 48 HOURS BEFORE YOU DIG.

SEE WWW.TEXAS811.ORG FOR FURTHER INFORMATION.

EACH OWNER AND OCCUPANT HEREBY RELEASES AND HOLDS HARMLESS DECLARANT AND THE TOWNHOME ASSOCIATION, AND THEIR 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 AN OWNER’S FAILURE MAINTAIN, REPAIR OR REPLACE A PRIVATE UTILITY LINE OR FAILURE TO TAKE THE PROPER PRECAUTIONS AND DETERMINE THE LOCATION OF ALL PRIVATE UTILITY LINES AT PRIOR TO DIGGING ON SUCH OWNER’S LOT.

’S FAILURE MAINTAIN, REPAIR OR REPLACE A PRIVATE UTILITY LINE OR FAILURE TO TAKE THE PROPER PRECAUTIONS AND DETERMINE THE LOCATION OF ALL PRIVATE UTILITY LINES AT PRIOR TO DIGGING ON SUCH OWNER’S LOT.

Each Owner is hereby granted an easement over and across the yard space of each Lot with a private utility line that exclusively serves such Owner's Dwelling to the extent reasonably necessary to maintain, repair and replace the Private Utility Line serving such Owner's Dwelling, subject (except in the case of an emergency threatening life or property) to the consent of the Owners of the Lots on which such Private Utility Line is located, and provided that the Owner's use of the easement granted hereunder does not damage or materially interfere with the use of the Lots or Dwellings. Requests for entry into Lots subject to the easement granted herein must be made to the Owner of such Lot in advance. The consent of the Lot Owner will not be unreasonably withheld; however, the Lot Owner may require that access to its Lot be limited to Monday through Friday, between the hours of 8 a.m. until 6 p.m., and then only in conjunction with actual maintenance, repair or replacement activities. If an 44 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 Owner damages a Dwelling or Lot in exercising the easement granted hereunder, the Owner will be required to restore the Dwelling or Lot to the condition which existed prior to any such damage, at such Owner's expense, within a reasonable period of time not to exceed 30 days after the date the Owner is notified in writing of the damage by the Owner of the damaged Dwelling or Lot.

ARTICLE 9 DEVELOPMENT 9.1 Notice of Applicability. Upon Recording, this Development Area Declaration

he date the Owner is notified in writing of the damage by the Owner of the damaged Dwelling or Lot.

ARTICLE 9 DEVELOPMENT 9.1 Notice of Applicability. Upon Recording, this Development Area Declaration serves to provide notice that at any time, and from time to time, Declarant, and Declarant only, may subject all or any portion of the Property to the terms, covenants, conditions, restrictions and obligations of this Development Area Declaration. This Development Area Declaration will apply to and burden a portion or portions of the Property upon the filing of a Notice of Applicability in accordance with Section 9.5 of the Covenant describing such Property by a legally sufficient description and expressly providing that such Property will be subject to the terms, covenants, conditions, restrictions and obligations of this Development Area Declaration.

To add land to the Development Area, Declarant will be required only to Record a Notice of Applicability filed pursuant to Section 9.5 of the Covenant containing the following provisions: (i) A reference to this Development Area Declaration, which will include the recordation information thereof; (ii) A statement that such land will be considered a part of the Development Area for purposes of this Development Area Declaration, and that all of the terms, covenants, conditions, restrictions and obligations of this Development Area Declaration will apply to the added land; and (iii) | A legal description of the added land.

9,2 Withdrawal of Land. Declarant may, at any time and from time to time, reduce or withdraw land from the Development Area and remove and exclude from the burden of this Development Area Declaration any portion of the Development Area. Upon any such

and from time to time, reduce or withdraw land from the Development Area and remove and exclude from the burden of this Development Area Declaration any portion of the Development Area. Upon any such withdrawal this Development Area Declaration and the covenants, conditions, restrictions and obligations set forth herein will no longer apply to the portion of the Development Area withdrawn. To withdraw lands from the Development Area hereunder, Declarant will be required only to Record a notice of withdrawal of land containing the following provisions: (i) A reference to this Development Area Declaration, which will include the recordation information thereof; (ii) A statement that the provisions of this Development Area Declaration will no longer apply to the withdrawn land; and 45 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 (iii) A legal description of the withdrawn land.

9.3 Assignment of Declarant’s Rights. Notwithstanding any provision in this Development Area 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 Development Area 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.

ARTICLE 10 GENERAL PROVISIONS 10.1. Term. The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Development Area Declaration will run with and bind the portion of the Property described, in a Notice of Applicability Recorded pursuant to Section 9.5 of the

ents, charges, and liens set out in this Development Area Declaration will run with and bind the portion of the Property described, in a Notice of Applicability Recorded pursuant to Section 9.5 of the Covenant or in any Recorded notice, and will inure to the benefit of and be enforceable by the Townhome Association, the Master Association, and every Owner, including Declarant, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Development Area Declaration is Recorded, and continuing through and including January 1, 2089, after which time this Development Area Declaration will be automatically extended for successive periods of ten (10) years unless a change (the word “change” meaning a termination, or change of term or renewal term) is approved by Townhome Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Townhome Association, voting in person or by proxy at a meeting duly called for such purpose, written notice of which will be given to all Townhome Members at least thirty (30) days in advance and will set forth the purpose of such meeting; provided, however, that such change will be effective only upon the Recording of a certified copy of such resolution. The foregoing sentence will in no way be interpreted to mean sixty-seven percent (67%) of a quorum as established pursuant to the Townhome Bylaws. Notwithstanding any provision in this Section to the contrary, if any provision of this Development Area Declaration would be unlawful, void, or voidable by reason of any Applicable Law restricting the period of time that covenants on land may be enforced, such provision will expire twenty-one (21) years after the death of the last

l, void, or voidable by reason of any Applicable Law restricting the period of time that covenants on land may be enforced, such provision will expire twenty-one (21) years after the death of the last survivor of the now living as of the date of the Recording of this document descendants of Elizabeth II, Queen of England.

10.2 Amendment. This Development Area Declaration may be amended or terminated by the Recording of an instrument setting forth the amendment executed and acknowledged by (i) the Declarant, acting alone; or (ii) by the president and secretary of the Townhome Association setting forth the amendment and certifying that such amendment has been approved by Declarant (until expiration or termination of the Development Period), Townhome Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Townhome Association and the Master Board (after expiration or termination of the Development Period). The foregoing sentence will in no way be interpreted to mean sixty46 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 seven percent (67%) of a quorum as established pursuant to the Townhome Bylaws. No amendment will be effective without the written consent of Declarant during the Development Period.

10.3. Enforcement and Nonwaiver. Except as otherwise provided herein, any Owner of Lot, at such Owner's own expense, Declarant, Master Association and the Townhome Association will have the right to enforce all of the provisions of this Development Area Declaration. The Master Association, Townhome Association and/or Declarant may initiate, defend or intervene in any action brought to enforce any provision of this Development Area

is Development Area Declaration. The Master Association, Townhome Association and/or Declarant may initiate, defend or intervene in any action brought to enforce any provision of this Development Area 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 Townhome Documents 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, the Master Association or the Townhome Association. Any violation of any Applicable Law pertaining to the ownership, occupancy, or use of any portion of the Development Area is hereby declared to be a violation of this Development Area Declaration and subject to all of the enforcement procedures set forth herein. The failure to enforce any provision of the Townhome Documents at any time will not constitute a waiver of the right thereafter to enforce any such provision or any other provision of the Townhome Documents.

10.4 Construction. The provisions of this Development Area Declaration will be deemed independent and severable, and the invalidity or partial invalidity of any provision or portion hereof will not affect the validity or enforceability of any other provision. Unless the context requires a contrary construction, the singular will include the plural and the plural the singular. All captions and titles used in this Development Area Declaration are intended solely for convenience of reference and will not enlarge, limit, or otherwise affect that which is set forth in any of the paragraphs, sections, or articles hereof.

10.5 Higher Authority. The terms and provisions of this Development Area

nd will not enlarge, limit, or otherwise affect that which is set forth in any of the paragraphs, sections, or articles hereof.

10.5 Higher Authority. The terms and provisions of this Development Area Declaration are subordinate to Applicable Law. Generally, the terms and provisions of this Development Area Declaration are enforceable to the extent they do not violate or conflict with Applicable Law.

10.6 Conflicts. If there is any conflict between the provisions of the Covenant, this Development Area Declaration, or any Townhome Rules adopted pursuant to the terms of such documents, the provisions of the Covenant, then the Development Area Declaration, then the Townhome Rules, in that order, will govern.

10.7. 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.

47 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 10.8 Interpretation. The provisions of this Development Area Declaration will be liberally construed to effectuate the purpose of creating a uniform plan for the development and operation of the Development Area, provided, however, that the provisions of this Development Area Declaration will not be held to impose any restriction, condition or covenant whatsoever on any Jand owned by Declarant other than the Development Area. This Development Area Declaration will be construed and governed under the laws of the State of Texas.

10.9 Acceptance by Owners. Each Owner of a Lot or other real property interest in the Development Area, by the acceptance of a deed of conveyance, and each subsequent

r the laws of the State of Texas.

10.9 Acceptance by Owners. Each Owner of a Lot or other real property interest in the Development Area, by the acceptance of a deed of conveyance, and each subsequent purchaser, 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 Development Area Declaration or to whom this Development Area 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 Development Area, and will bind any person having at any time any interest or estate in the Development Area, and will inure to the benefit of each Owner in like manner as though the provisions of this Development Area Declaration were recited and stipulated at length in each and every deed of conveyance.

ARTICLE 11 DISPUTE RESOLUTION This Article 11 is intended to encourage the resolution of disputes involving the Property. A dispute regarding the Lots, Dwellings, Structures and/or Improvements can create significant financial exposure for the Townhome Association and the Townhome Members, interfere with the resale and refinancing of Lots and Dwellings, and increase strife and tension among the Owners, the Townhome Board and the Townhome Association’s management.

Since disputes may have a direct effect on each Owner's use and enjoyment of their Lot or

nd increase strife and tension among the Owners, the Townhome Board and the Townhome Association’s management.

Since disputes may have a direct effect on each Owner's use and enjoyment of their Lot or Dwelling, this Article 11 requires Owner transparency and participation in certain circumstances. Transparency means that the Owners are informed in advance about a dispute, the proposed arrangement between the Townhome Association and a law firm or attorney who will represent the Townhome Association in the dispute, and that each Owner will have an opportunity to participate in the decision-making process prior to initiating the dispute resolution process.

11.1 Introduction and Definitions. The Townhome Association, the Owners, Declarant, all persons subject to this Development Area Declaration, and any person not otherwise subject to this Development Area Declaration who agrees to submit to this Article by written instrument delivered to the Claimant, which may include, but is not limited to, a Homebuilder, a general contractor, sub-contractor, design professional, or other person who 48 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES} 4852-1657-1065v.3 57160-13 participated in the design or construction of Lots, Dwellings, Structures or any Improvement within, serving or forming a part of the Property (individually, a “Party” and collectively, the “Parties”) agree to encourage the amicable resolution of disputes involving the Development Area and 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 11 may only be amended with the prior written approval of the

l possible.

Accordingly, each Party hereby covenants and agrees that this Article applies to all Claims as hereafter defined. This Article 11 may only be amended with the prior written approval of the Declarant, the Townhome Association (acting through a Majority of the Townhome Board), and Owners holding 100% of the votes in the Townhome Association. As used in this Article only, the following words, when capitalized, have the following specified meanings: (i) “Claim” means: (A) — Claims relating to the rights and/or duties of Declarant, the Townhome Association, Master Association, the Lexington Estates Reviewer, or the ACC under the Townhome Documents.

(B) Claims relating to the acts or omissions of the Declarant, the Townhome Association or a Townhome Board member or officer of the Townhome Association during Declarant’s control and administration of the Townhome Association, and any claim asserted against the Lexington Estates Reviewer.

(C) Claims relating to the design or construction of any Lot, Structure, Dwelling or Improvements located on the Development Area.

(D) Claims relating to the Area of Common Responsibility.

(ii) “Claimant” means any Party having a Claim against any other Party.

(iii) “Respondent” means any Party against which a Claim has been asserted by a Claimant.

11.2. Mandatory Procedures. Claimant may not initiate any proceeding before any judge, jury, arbitrator or any judicial or administrative tribunal seeking redress of resolution of its Claim until Claimant has complied with the procedures of this Article. As provided in Section 11.7 below, a Claim will be resolved by binding arbitration.

11.3 Claim by Lot Owners ~ Improvements on Lots. Notwithstanding anything

plied with the procedures of this Article. As provided in Section 11.7 below, a Claim will be resolved by binding arbitration.

11.3 Claim by Lot Owners ~ Improvements on Lots. Notwithstanding anything contained herein to the contrary, in the event a warranty is provided to a Lot Owner by the Declarant or a Homebuilder relating to the design or construction of any Improvements located 49 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 on a Lot, then this Article 11 will only apply to the extent that this Article 11 is more restrictive than such Lot Owner’s warranty, as determined in the Declarant’s sole discretion. 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 11 will apply. Class action proceedings are prohibited, and no Lot Owner shall be entitled to prosecute, participate, initiate, or join any litigation, arbitration or other proceedings as a class member or class representative in any such proceedings under this Declaration. If a Lot Owner brings a Claim, as defined in Section 11.1, 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 11.4, initiating the mandatory dispute resolution procedures set forth in this Article 11, or taking any other action to prosecute a Claim, the Lot Owner must: 11.3.1 Provide Notice of the Inspection. As provided in Section 11.3.2 below, an Owner Improvement Report is required which is a written inspection report issued by the Inspection Company. Before conducting an inspection that is required to be memorialized by

tion 11.3.2 below, an Owner Improvement Report is required which is a written inspection report issued by the Inspection Company. Before conducting an inspection that is required to be memorialized by the Owner Improvement Report, the Owner must have provided at least ten (10) days prior written notice of the date on which the inspection will occur to each Respondent which notice shall identify the Inspection Company preparing the Owner Improvement Report, the Improvements and areas of the Improvements to be inspected, and the date and time the inspection will occur. Each Respondent may attend the inspection, personally or through an agent.

11.3.2 Obtain an Owner Improvement Report. The requirements related to the Owner Improvement Report set forth in this Section 11.3.2 are intended to provide assurance to the Claimant and Respondent that the substance and conclusions of the Owner Improvement Report and recommendations are not affected by influences that may compromise the professional judgement of the party preparing the Owner Improvement Report, and to avoid circumstances which would create the appearance that the professional judgment of the party preparing the Owner Improvement Report is compromised.

Obtain a written independent third-party report for the Improvements (the “Owner Improvement Report”) from an Inspection Company. The Owner Improvement Report must include: (i) a description with photographs of the Improvements subject to the Claim; (ii) a description of the present physical condition of the Improvements; (iii) a detailed description of any modifications, maintenance, or repairs to the Improvements performed by the Owner or a third-party, including any Respondent; (iv) specific and detailed recommendations regarding

ed description of any modifications, maintenance, or repairs to the Improvements performed by the Owner or a third-party, including any Respondent; (iv) specific and detailed recommendations regarding remediation and/or repair of the Improvements. For the purpose of subsection (iv) of the previous sentence, the specific and detailed recommendations must also include the specific process, procedure, materials, and/or improvements necessary and required to remediate and/or repair the deficient or defective condition identified in the Owner Improvement Report and the estimated costs necessary to effect such remediation and/or repairs. The estimate of costs required by the previous sentence shall be obtained from third-party contractors with an office located in Collin County, Texas and each such contractor providing the estimate must 50 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 hold all necessary or required licenses from the Texas Department of Licensing and Regulation or otherwise required by Applicable Law for the work to which the cost estimate relates.

The Owner Improvement Report must be obtained by the Owner. The Owner Improvement Report will not satisfy the requirements of this Section and is not an “independent” report if: (a) the Inspection Company has an arrangement or other agreement to provide consulting and/or engineering services with the law firm or attorney that presently represents the Owner or proposes to represent the Owner; (b) the costs and expenses for preparation of the Owner Improvement Report are not directly paid by the Owner to the Inspection Company no later than the date the Owner Improvement Report is finalized and

the costs and expenses for preparation of the Owner Improvement Report are not directly paid by the Owner to the Inspection Company no later than the date the Owner Improvement Report is finalized and delivered to the Owner; or (c) the law firm or attorney that presently represents the Owner or proposes to represent the Owner has agreed to reimburse (whether unconditional or conditional and based on the satisfaction of requirements set forth in the Owner's agreement with the law firm or attorney) the Owner for the costs and expenses for preparation of the Owner Improvement Report. For avoidance of doubt, an “independent” report means that the Owner has independently contracted_with the Inspection Company on an arms-length basis based _on customary terms for the preparation of engineering reports and that the Owner will directly pay for the report no later than the date the Owner Improvement Report is finalized and delivered to the Owner.

11.3.3 Provide a Copy of Owner Improvement Report to all Respondents. Upon completion of the Owner Improvement Report, and in any event no later than three (3) days after the Owner has been provided a copy of the Owner Improvement Report, the Owner will provide a full and complete copy of the Owner Improvement Report to each Respondent. The Owner shall maintain a written record of each Respondent who was provided a copy of the Owner Improvement Report which will include the date the report was provided. The Owner Improvement Report shall be delivered to each Respondent by hand-delivery and to each Owner by mail.

Report. Commencing on the date the Owner Improvement Report has been completed and continuing for a period of ninety (90) days thereafter, each Respondent shall have the right to:

each Owner by mail.

Report. Commencing on the date the Owner Improvement Report has been completed and continuing for a period of ninety (90) days thereafter, each Respondent shall have the right to: (i) inspect any condition identified in the Owner Improvement Report; (ii) contact the Inspection Company for additional information necessary and required to clarify any information in the Owner Improvement Report; and (iii) correct any condition identified in the Owner Improvement Report. As provided in Section 8.2 above, the Declarant has an easement throughout the Property for itself, and its successors, assigns, architects, engineers, other design professionals, each Homebuilder, other builders, and general contractors that may be utilized during such ninety (90) day period and any additional period needed thereafter to correct a condition identified in the Owner Improvement Report.

11.4 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 51 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 involved, and Respondent's role in the Claim; (ii) the basis of the Claim (i.e., the provision of the Restrictions or other authority out of which the Claim arises); (iii) what Claimant wants 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 11.5 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

time period for negotiation in Section 11.5 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 11.5 to comply with the terms and provisions of Section 27.004 during such sixty (60) day period.

Section 11.5 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 11.6 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 pursuant to Section 11.6 is required without regard to the monetary amount of the Claim. If the Claim pertains to Improvements on a Lot, the Notice will also include a true and correct copy of the Owner Improvement Report.

11.5 Negotiation. 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 Development Area, then at such meeting or at some other mutually-agreeable time, Respondent and Respondent's representatives will have full access to the Development Area that is subject

ortion of the Development Area, then at such meeting or at some other mutually-agreeable time, Respondent and Respondent's representatives will have full access to the Development Area that is subject to the Claim for the purposes of inspecting the Development Area. If Respondent elects to take corrective action, Claimant will provide Respondent and Respondent’s representatives and agents with full access to the Development Area to take and complete corrective action.

11.6 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 on 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 11.6. If the Parties do not settle the Claim within thirty (30) days after submission to mediation, Respondent or Claimant may initiate arbitration proceedings in accordance with Section 11.7.

11.7 Binding Arbitration-Claims. A!] Claims must be settled by binding arbitration.

Claimant or Respondent may, by summary proceedings (e.g., a plea in abatement or motion to 52 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 stay further proceedings), bring an action in court to compel arbitration of any Claim not

atement or motion to 52 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 stay further proceedings), bring an action in court to compel arbitration of any Claim not referred to arbitration as required by this Section 11.7.

11.7.1. Governing Rules. {f a Claim has not been resolved after mediation in accordance with Section 11.6, the Claim will be resolved by binding arbitration in accordance with the terms of this Section 11.7 and the American Arbitration Association (the “AAA”) Construction Industry Arbitration Rules and Mediation Procedures and, if applicable, the rules contained in the AAA Supplementary Procedures for Consumer Related Disputes, as each are supplemented or modified by the AAA (collectively, the Construction Industry Arbitration Rules and Mediation Procedures and AAA Supplementary Procedures for Consumer Related Disputes are referred to herein as the “AAA Rules”). In the event of any inconsistency between the AAA Rules and this Section 11.7, this Section 11.7 will control. Judgment upon the award rendered by the arbitrator shall be binding and not subject to appeal, 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 shail be conducted by a panel of three (3) arbitrators, to be chosen as follows: (i) One arbitrator shall be selected by Respondent, in its sole and absolute discretion; (ii) One arbitrator shall be selected by the Claimant, in its sole and absolute discretion; and arbitrators having been selected by Respondent and the Claimant, in their sole and absolute discretion.

and absolute discretion; and arbitrators having been selected by Respondent and the Claimant, in their sole and absolute discretion.

11.7.2 Exceptions to Arbitration; Preservation of Remedies. No provision of, nor the exercise of any rights under, this Section 11.7 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, 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.

11.7.3. Statute of Limitations. All statutes of limitation that would otherwise be applicable shall apply to any arbitration proceeding under this Section 11.7.

53 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 11.7.4 Scope of Award: Modification or Vacation of Award. The arbitrator shall resolve all Claims in accordance with Applicable Law. The arbitrator may grant any remedy or

] 4852-1657-1065v.3 57160-13 11.7.4 Scope of Award: Modification or Vacation of Award. The arbitrator shall resolve all Claims in accordance with Applicable Law. The arbitrator may grant any remedy or relief that the arbitrator deems just and equitable and within the scope of this Section 11.7 and subject to Section 11.8 below; provided, however, attorney's fees and costs may not be awarded by the arbitrator to either Claimant or Respondent. In addition, 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, except that the arbitrator may not award attorney's fees and/or costs to their Claimant or Respondent. 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 Applicable Law; or (iv) a cause of action or remedy not expressly provided under Applicable Law. In no event may an arbitrator award speculative, special, exemplary, treble, or punitive damages for any Claim.

11.7.5 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. Arbitration proceedings hereunder shall be conducted in

ble, an arbitration proceeding hereunder shall be concluded within one hundred and eighty (180) days of the filing of the Claim for arbitration. Arbitration proceedings hereunder shall be conducted in Collin County, Texas. Unless otherwise provided by this Section 11.7, the arbitrator shall be 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. Claimant and Respondent agree 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. In no event shall Claimant or Respondent 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.

11.8 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.

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

11.10 Period of Limitation.

54 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 11.10.1 For Actions by_an Owner or Occupant. The exclusive period of

imant’s Claim.

11.10 Period of Limitation.

54 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 11.10.1 For Actions by_an Owner or Occupant. 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 or Occupant discovered or reasonably should have discovered evidence of the Claim; (ii) for Claims other than those alleging construction defect or defective design, four (4) years and one (1) day from the date that the Owner or Occupant discovered or reasonably should have discovered evidence of the Claim; or (iii) the applicable statute of limitations for such Claim. In no event shall this Section 11.10.1 be interpreted to extend any period of limitations.

11.10.2 For Actions by the Townhome Association. The exclusive period of limitation for the Townhome 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 or defective design, two (2) years and one (1) day from the date that the Townhome Association or its manager, board members, officers or 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 Townhome Association or its manager, board members, officers or agents discovered or reasonably should have discovered evidence of the Claim; or (iii) for all Claims, the applicable statute of limitations for such Claim. In no event

ger, board members, officers or agents discovered or reasonably should have discovered evidence of the Claim; or (iii) for all Claims, the applicable statute of limitations for such Claim. In no event shall this Section 11.10.2 be interpreted to extend any period of limitations.

11.11 Approval & Settlement. The Townhome Association must levy a Special Townhome Assessment to fund the estimated costs of arbitration, including estimated attorney’s fees, conducted pursuant to this Article 11 or any judicial action initiated by the Townhome Association. The Townhome Association may not use its annual operating income or reserve funds or savings to fund arbitration or litigation, unless the Townhome Association's annual budget or a savings account was established and funded from its inception as an arbitration and litigation reserve fund.

ARTICLE 12 DISCLOSURES This Article discloses selective features of the Structures and Dwellings that may not be obvious to potential Owners and Occupants. Because features may change over time, no disclosure in this Article should be relied upon without independent confirmation.

12.1 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.

12.2 Fire Sprinkler Disclosure. The Dwellings 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 55 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 malfunction of, a water line or sprinkler head may harm or destroy real and personal property.

damage to, or a 55 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 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) determining the location and proper care of the sprinkler equipment, water lines and sprinkler heads in the Dwelling; (ii) | preserving the integrity and functionality of the portion of the fire sprinkler system in their Dwelling; (iii) instructing each Occupants, invitees and contractors about the care and protection of the sprinkler system, including any applicable rules adopted by the Board; (iv) any damage to their 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; and (v)} 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.

The Association does not inspect or fix water lines and sprinkler heads, if any, in your Dwelling, 12.3. Adjacent Use. No representations are made regarding the use of adjacent property.

12.4 Qutside Conditions. Since in every neighborhood there are conditions that different people may find objectionable, it is acknowledged that there may be conditions

ng the use of adjacent property.

12.4 Qutside 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 Occupant may find objectionable, and it shall be the sole responsibility of an Owner or Occupant to become acquainted with neighborhood conditions that could affect the Property.

12.5 Concrete.

12.5.1 Cracks. Minor cracks in poured concrete, including foundations, garage floors, sidewalks, driveways and patios, are inevitable as a result of the natural movement of 56 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 soil (expansion and contraction), shrinkage during the curing of the concrete, and settling of a Dwelling and Structure.

12.5.2 Exposed Floors. This Section applies to Dwellings or Structures with exposed concrete floors. This notice is given because Owners may be inexperienced with concrete and expect it to be as forgiving as wood or sheetrock. In deciding whether, when, and how to fill cracks in exposed concrete floors, an Owner is hereby made aware that the color and texture of the fill material may not match the rest of the concrete floor. On some exposed concrete floors, fill materials make minor cracks more noticeable than if the cracks had been left in their natural state. In addition, each Owner is hereby made aware that any specification for polished concrete means that the concrete will be polished, but this does not mean an Owner will be able to actually see their reflection in the floor.

12.6 Construction Activities. Declarant, Homebuilders, and their licensees will be constructing portions of the Property and engaging in other construction activities related to the

tion in the floor.

12.6 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: (i) noise or sound that is objectionable because of its volume, duration, frequency or shrillness; (ii) smoke; (iii) noxious, toxic or corrosive fumes or gases; (iv) obnoxious odors; (v) dust, dirt or flying ash; (vi) unusual fire or explosion hazards; (vii) temporary interruption of utilities; and/or (viii) other conditions that may threaten the security or safety of persons within the Property or the Common Area. Notwithstanding the foregoing, all Owners and Occupants 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, Homebuilder or their agents to be deemed in violation of any provision of the Declaration.

12.7. Moisture. Improvements within a Dwelling and/or 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 Occupants, the condensation may increase resulting in staining, damage to surrounding seals, caulk, paint, wood work and sheetrock, and potentially, mildew and/or mold.

12.8 Mold and/or Mildew. Mold and/or mildew can grow in any portion of a

resulting in staining, damage to surrounding seals, caulk, paint, wood work and sheetrock, and potentially, mildew and/or mold.

12.8 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 and appliances such as showers, sinks, dishwashers and other similar appliances and Improvements) and/or damage.

57 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 12.9 Encroachments. Improvements may have been constructed on adjoining lands that encroach onto the Property. Declarant or Homebuilder gives no representations or warranties as to property rights, if any, created by any such encroachments.

12,10 Budgets. Any budgets of the Townhome Association provided by the Declarant or a Homebuilder 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.

12.11 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.

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

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

ED.

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

12.13 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 vibrations typically found in an suburban area. In addition to sound and vibration, there may be odors and light in suburban areas.

12.14 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.

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

12.16 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.

12.17 Plans. Any advertising materials, brochures, renderings, drawings, and the like, furnished by Declarant or a Homebuilder to Owner which purport to depict the Improvements to be constructed on any Lot are merely approximations and do not necessarily reflect the actual

and the like, furnished by Declarant or a Homebuilder 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.

58 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION (TOWNHOMES) 4852-1657-1065v.3 57160-13 12.18 Location of Utilities. Neither Declarant nor any Homebuilder makes any representation as to the location of mailboxes, utility boxes, street lights, fire hydrants or storm drain inlets or basins.

12.19 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 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.

12.20 Stone. Veins and colors of any marble, slate or other stone if any, within a

e than some man-made materials. Owners of Dwellings with wood floors should educate themselves about wood floor care.

12.20 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 stone 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 and each Homebuilder assume 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 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.

12.21 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 will and do contain mold, mildew, fungus, spores and chemicals that may cause allergic or other bodily reactions in certain individuals. Leaks, wet

The water, powders, solids and industrial chemicals will 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.

Neither Declarant nor any Homebuilder is 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.

59 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 12.22 Marketing. Declarant’s or a Homebuilder’s use of a sales center and/or model homes or reference to other construction by Declarant or a Homebuilder 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 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 or a Homebuilder.

Declarant or a Homebuilder may also have shown prospective purchasers mode! homes, floor plans, sketches, drawings, and scale models of Structures and/or Dwellings (“Promotional Aids”). Owner understands and agrees that the Promotional Aids are conceptual, subject to change, for display purposes only, and may not be incorporated into the Structures and/or Dwellings.

[SIGNATURE PAGE TO FOLLOW] 60 LEXINGTON ESTATES

hat the Promotional Aids are conceptual, subject to change, for display purposes only, and may not be incorporated into the Structures and/or Dwellings.

[SIGNATURE PAGE TO FOLLOW] 60 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 1 DECLARANT: ASHTON DALLAS RESIDENTIAL L.L.C., a Texas limited liabit By: Name: Title: STATE OF TEXAS § § COUNTY OF DQ Placa 5 4 This ipstgyinent was acknowledged before me this ge. day of Cok : 200, enc Sadby vl) oe kchvey by\2 of Ashton Dallas Residential L.L.C., a Texas limited liability company, on behalf of said limited liability pompany.

(SEAL) eg GO _— Notary Public Signature a!

ANGELASCOTT ID # 590717-4 Notary Public, State of Texas Neots My Commission Expires iT 08/20/2021 = e on SS “tsi ma %, 2.

tty fg S a, 58 No% ~ a z.

= 3 %, ES) ee 61 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 | EXHIBIT A DESIGNATION OF AREA OF COMMON RESPONSIBILITY AND MAINTENANCE CHART “All aspects” includes maintenance, repair, and replacement, as needed.

COMPONENT OF DWELLING | TOWNHOME ASSOCIATION RESPONSIBILITY Roofs. Replacement of the roof when the Townhome Board determines, in its sole and | absolute discretion, that the roof needs to be replaced in_ its | entirety. The Townhome Association will have no obligation to replace shingles, } flashing, or other roof components unless associated with roof replacement as determined by the Townhome Board in its sole and absolute discretion.

Roof mounted attachments. None.

OWNER RESPONSIBILITY (SUBJECT TO APPROVAL BY LEXINGTON ESTATES REVIEWER) All other —_ aspects. Any maintenance or replacement of the roof by an Owner must be approved in advance by the Townhome Board.

OWNER RESPONSIBILITY (SUBJECT TO APPROVAL BY LEXINGTON ESTATES REVIEWER) All other —_ aspects. Any maintenance or replacement of the roof by an Owner must be approved in advance by the Townhome Board.

Dwelling Foundation.

| Exterior painting. Exterior painting as determined necessary or required by the Townhome Board. Such exterior painting may be limited to reAll aspects.

Periodic touch-ups and maintenance of the exterior paint. Touch-ups or maintenance of exterior painting performed by the Owner must be when the Townhome Board | approved in advance by the determines the exterior paint | Townhome Board.

needs to be replaced due to the useful life of the painted surfaces, as determined by the Townhome Board in its sole and _ absolute discretion.

Exterior Dwelling components, | None.

including glass and appurtenant hardware.

All aspects.

MAINTENANCE RESPONSIBILITY CHART — PAGE 1 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 | | painting on single occurrences RESPONSIBILITY OWNER RESPONSIBILITY {SUBJECT TO APPROVAL BY LEXINGTON ESTATES REVIEWER) Exterior painting of entry doors and garage doors only as determined necessary or required by the Townhome | Board. Such exterior painting of entry doors and garage doors may be limited to re-painting on single occurrences when the Townhome Board determines the exterior paint needs to be replaced due to the useful life of | the painted surfaces, as determined by the Townhome Board in its sole and absolute discretion.

| Windows, doors, garage doors.

Concrete driveways. All structural aspects.

Any sidewalk not maintained by | All structural aspects.

the City.

Retaining walls. All aspects.

| '

e discretion.

| Windows, doors, garage doors.

Concrete driveways. All structural aspects.

Any sidewalk not maintained by | All structural aspects.

the City.

Retaining walls. All aspects.

| ' Yard Areas (as defined in Section | All aspects. None.

6.7) Fences and gates around private | None, except portion(s) of the Dwelling yards. Perimeter Fence affecting a Lot, if any.

| Skylights. None.

All other aspects.

Periodic touch-ups and maintenance of the exterior paint of entry doors and garage doors.

Touch-ups or maintenance of exterior painting of entry doors and garage doors performed by the Owner must be approved in advance by the Board.

Townhome Routine cleaning and repair of minor cracks that result from the natural expansion & contraction of soil, shrinkage during the curing of the concrete and settling of the Dwelling.

Routine cleaning and repair of minor cracks that result from the natural expansion & contraction of soil, shrinkage during the curing of the concrete and settling of the Dwelling.

None.

All aspects, except for any portion of the Perimeter Fence.

None.

‘All aspects.

Attics. None.

| All aspects.

Chimneys and Fireplaces MAINTENANCE RESPONSIBILITY CHART All aspects.

PAGE 2 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13 COMPONENT OF DWELLING | TOWNHOME ASSOCIATION OWNER RESPONSIBILITY RESPONSIBILITY (SUBJECT TO APPROVAL BY LEXINGTON ESTATES REVIEWER) Insulation & weather stripping. None. | All aspects.

Dwelling interiors, including | None. All aspects.

improvements, fixtures, partition walls & floors within Dwelling. 7 Sheetrock in Dwellings (walls | None. All aspects and ceilings) & treatments on walls.

decks ee water heaters.

Intrusion alarms on | None. All aspects.

doors/windows, smoke/heat :

s within Dwelling. 7 Sheetrock in Dwellings (walls | None. All aspects and ceilings) & treatments on walls.

decks ee water heaters.

Intrusion alarms on | None. All aspects.

doors/windows, smoke/heat : detectors, monitoring equipment.

Cluster mailboxes and pad sites. | All aspects. None, except that the cost and/or expense incurred by the Townhome Association for the maintenance, repair and/or replacement of cluster mailboxes or pad sites on which such cluster mailboxes are situated, shall be charged as an Individual Townhome Assessment to the Owners that have mailbox units in such cluster mailbox or pad site being maintained, repaired oe and/or replaced.

Any other component of a| None. All aspects.

Dwelling and/or Lot not specifically listed in this Exhibit “A”. ae NOTE 1: The components listed in the first column are applicable only if they exist, and may not be construed to create a requirement to have such a component.

NOTE 2: If an Owner fails or refuses to perform necessary maintenance, repair, or replacement, the Townhome Association may perform the work after giving required notices to the Owner, MAINTENANCE RESPONSIBILITY CHART — PAGE 3 LEXINGTON ESTATES DEVELOPMENT AREA DECLARATION [TOWNHOMES] 4852-1657-1065v.3 57160-13