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Salado Mills Subdivision Residential Community, Inc. · 39 pages
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Roem 2 rar DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS FOR VIZ SFiS SALADO MILLS SUBDIVISION TABLE OF CONTENTS ARTICLE 1 DEFINITIONS 4 ARTICLE 2 USE RESTRICTIONS “is General 7 Conceptual Plans 7 Single-Family Residential Use 8 Rentals 8 Subdividing 9 Hazardous Activities 9 Mining and Drilling 9 Noise 9 Animals - Household Pets 9 Rubbish and Debris 9 Trash Containers 10 Maintenance 10 Street Landscape Area-Owner's Obligation to Maintain Landscaping 10 Antennae 10 Location of Permitted Antennas il Signs 11 Flags - Approval Requirements 12 Flags - Installation and Display 12 Tanks ro, 12 Temporary Structures, Outbuildings, Sheds and Detacfted Bui 13 Unsightly Articles; Vehicles 13 Basketball Goals 13 Compliance with Restrictions © 13 Liability of Owners for Damage to Gontm € 14 No Warranty of Enforceability 14 Party Wall Fences 14 No Tennis or Recreational Courfg; Playsca 15 Decorations and Lighting 15 Clotheslines; Window Air 15 Dumping 15 Declarant and Homeba ion 15 NCTION RESTRICTIONS 15 15 15 15 16 16 Setbacks 16 Fences; Sidewalks 16 Building Restrictions 16 Alteration or Removal of improvements 16 Drainage 16 Construction Activities : 16 Roofing 17 Swimming Pools 17 Solar Energy Device 17 Rainwater Harvesting Systems Landscaping Height Restrictions Driveways Guest House, Party House, Pool House and Detached Building ARTICLE 4 SALADO MILLS SUBDIVISION RESIDENTIAL COMMUNITY, INC.

& Organization Membership Governance Voting Rights Powers Acceptance of Common Area Maintenance of Common Area Indemnification Insurance Bulk Rate Contracts Community Systems Declarant's Right to Contribute to Revenues of the Association Protection of Declarant's Interests.

Administration of Common Area Notices and Disclaimers as to Security Systems ARTICLE 5 INSURANCE Insurance

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

Administration of Common Area Notices and Disclaimers as to Security Systems ARTICLE 5 INSURANCE Insurance ARTICLE 6 COVENANT FOR ASSESSMEN Assessments Maintenance Fund Regular Annual Assessments © Working Capital Assessment Special Assessments Individual Assessments Amount of Assessment Exempt Property Fines and Damages Assesg ARTICLE 7 B FAL CONTROL COMMITTEE Construction of I e ARTICLE 9 GENERAL PROVISIONS Term Eminent Domain Amendment Roadway and Utility Easements Enforcement Higher Authority Severability Restoration IN Mechanic's and Materialmen's Lien 18 19 19 19 19 19 19 19 19 20 20 22 22 22 23 23 23 23 24 24 24 24 25 25 25 25 25 26 26 26 27 28 29 29 29 32 32 32 32 32 32 32 33 33 33 33 33 Conflicts Gender Acceptance by Grantees Damage and Destruction No Partition Notices View Impairment Safety and Security ARTICLE 10 EASEMENTS Right of Ingress and Egress Reserved Easements Utility Basements Subdivision Entry and Fencing Easement Landscape and Monument Sign Easement Landscape Easement Drainage and Maintenance Easement ARTICLE 11 DEVELOPMENT RIGHTS Development by Declarant Special Declarant Rights Addition of Land Withdrawal of Land Assignment of Declarant's Rights Declarant as Attorney in Fact Voluntary Annexation & DECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS This Declaration of Covenants, Conditions and Restrictions (the "Declaration") is made by SALADO MILLS DEVELOPMENT COMPANY, LLC, a Georgia limited liability company (the "Declarant"), and is as follows: RECITALS: A. This Declaration is filed with respect to Lots One (1) through Nine (9), Block One (1); SALADO MILLS

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OMPANY, LLC, a Georgia limited liability company (the "Declarant"), and is as follows: RECITALS: A. This Declaration is filed with respect to Lots One (1) through Nine (9), Block One (1); SALADO MILLS SUBDIVISION, Phase I, a subdivision Bell County, Texas, according to the plat of record under Plat Year and sale of the Property.

B. By the filing of this Declaration, Declarant serves notice that the Property will be subjec, provisions of this Declaration.

ill conclusively be held to have been executed, delivered, and accepted subject to the following covenants, Kontitions/and restrictions, regardless of whether or not the same are set out in full or by reference in said Unless the context otherwise specifies will have the meanings hereinafter spe until the Declarant has assigned its right to appoint and remove all ACC members to prded written instrument.

" Assessment Unit" has the meaning set forth in Section 6.07.

"Association" means the Salado Mills Subdivision Residential Community, Inc., a Texas non-profit corporation, which will be created by Declarant to exercise the authority and assume the powers specified in Article 4 and elsewhere in this Declaration.

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

"Bulk Rate Contract" or "Bulk Rate Contracts" means one or more contracts which are entered into by the Association for the provision of utility services or other services of any kind or nature to the Lots. The services provided under Bulk Rate Contracts may include, without limitation, cable television services, telecommunications services, internet access services, "broadband" services, security services, trash pick-up services, propane service,

cts may include, without limitation, cable television services, telecommunications services, internet access services, "broadband" services, security services, trash pick-up services, propane service, natural gas service, lawn maintenance services, wastewater services, and any other services of any kind or nature which are considered by the Board to be beneficial to all or a portion of the Property.

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

Manual may be amended, from time to time, by a Majority of the Board Development Period. Upon expiration or temlination of the Dowe $ written consent during the é Community Manual may be "Community Systems" means any and all cable televigston, telephone or other lines, conduits, wires, a é installations and fixtures (including those based on) "Declarant" means SALADO MIL D company, its successors or assign i DEVELOPMENT COMPANY, forth in writing and Recorded.

COMPANY, LLC, a Georgia limited liability ahy assignments of the rights of SALADO MILLS Declarant enjoys special rights this Declaration. Many of these.fi and endweg fch time as Declarant no longer owns any portion of the Property, unless earlier terminated by Declarant. Declarant may terminate the Development Period by an instrument executed by Declarant and Recorded.

The Development Period is the period in which Declarant reserves the right to facilitate the development, construction, and marketing of the Property, and the right to direct the size, shape and composition of the Property.

"Homebuilder" means an Owner (other than the Declarant) who acquires a Lot for the construction of a singlefamily residence for resale to a third party.

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size, shape and composition of the Property.

"Homebuilder" means an Owner (other than the Declarant) who acquires a Lot for the construction of a singlefamily residence for resale to a third party.

"Improvement" means every structure and all appurtenances of every type and kind, whether temporary or 5 permanent in nature, including, but not limited to, buildings, outbuildings, storage sheds, patios, tennis courts, sport courts, recreational facilities, swimming pools, putting greens, garages, driveways, parking areas and/or facilities, storage buildings, sidewalks, fences, gates, screening walls, retaining walls, stairs, patios, decks, walkways, landscaping, mailboxes, poles, signs, antennae, exterior air conditioning equipment or fixtures, exterior lighting fixtures, water softener fixtures or equipment, and poles, pumps, wells, tanks, reservoirs, pipes, lines, meters, antennas, towers and other facilities used in connection with water, sewer, gas, electric, telephone, regular or cable television, or other utilities.

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

""Majority"' means more than half.

"Manager" has the meaning set forth in Section 4.05(h).

"Mortgage" or "Mortgages" means any mortgage(s) or deed(s) of trust securing ipde e vering any Lot.

"Mortgagee" or ''Mortgagees" means the holder(s) of any Mortgage(s) "Owner" means the person(s), entity or entities, including Detlarant, ho or a portion of the fee simple interest in any Lot, but does not include the Mortgagee unde interest in such Lot pursuant to foreclosure of the lien of its Mort "Plat" means a Recorded subdivision plat of any powen of t "Property" means Lots One (1) through Nine (9),

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clude the Mortgagee unde interest in such Lot pursuant to foreclosure of the lien of its Mort "Plat" means a Recorded subdivision plat of any powen of t "Property" means Lots One (1) through Nine (9), subdivision in Bell County, Texas, aseene to He of Bell County, Texas, subject to such a 11.03 and Section 11.04 of this Declarg "Record, Recording, Recorda Records of Bell County, Texas.

"Restrictions" means Guidelines, if adopted 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.

TABLE 1: This document and any amendments thereto.

Establishes the Association as a Texas nonprofit corporation.

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

Community Manual (Recorded) Establishes rules and policies governing the Association. 4 Design Guidelines (if adopted, Recorded) Governs the design and architectural standards for the construction of Improvements and — modifications thereto = Declaration (Recorded) Certificate of Formation (Recorded) Bylaws (Recorded) ei PON conduct within the Property.

the Association the Prope Owners and the A fits _ WL) ARTICLE 2 USE RESTRICTJONS All of the Property shall be owned, held, encumbered, leased, uséd limitations and restrictions: a Scupied, and enjoyed subject to the following 2.01 General.

(a) Conditions and Restrictions. All Lots witht used, occupied and enjoyed subject to the Restr} NOTICE The Restrictions g Lot, you agree to remaintx (b) Ordinances all Lots within the Propg ordinances and regulatio ordinance or regulatt review all ordingice materials relating to the Property (collectively, the "Conceptual Plans") are conceptual in nature and are intended

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within the Propg ordinances and regulatio ordinance or regulatt review all ordingice materials relating to the Property (collectively, the "Conceptual Plans") are conceptual in nature and are intended to be used for illustrative purposes only. The land uses and Improvements reflected on the Conceptual Plans are subject to change at any time and from time to time, and it is expressly agreed and understood that land uses within the Property may include uses which are not shown on the Conceptual Plans. Neither Declarant nor any Homebuilder or other developer of any portion of the Property makes any representation or warranty concerning, such land uses and Improvements shown on the Conceptual Plans or otherwise planned for the Property and it is expressly agreed and understood that no Owner will be entitled to rely upon the Conceptual Plans in making the decision to purchase any land or Improvements within the Property/Each Owner who 7 acquires a Lot within the Property acknowledges that development of the Property will likely extend over many years, and agrees that the Association will not engage in, or use Association funds to support, protest, challenge, or make any other form of objection to development of the Property or changes in the Conceptual Plans as they may be amended or modified from time to time.

2.03 Single-Family Residential Use. The Lots shall be used solely for single family residential purposes.

The Lots may not be used for any other purposes without the prior written consent of the Declarant, which consent may be withheld by the Declarant in its sole and absolute discretion. No professional, business, or commercial activity to which the general public is invited shall be conducted on any portion of a Lot, except an

eld by the Declarant in its sole and absolute discretion. No professional, business, or commercial activity to which the general public is invited shall be conducted on any portion of a Lot, except an Resident(s) of a residence; (iii) the existence or operation of the business activity is not apparent or dé sight, i.e., no sign may be erected advertising the business within the Property, sound, or smell residence; (iv) the business activity does not involve door-to-door solicitation of residents withi contrary. until the earlier to occur of expiration or from the date this Declaration is Recorded: upon the Lots, including, , i # to, business offices, signs, model homes, and sales offices. Declarant and/or its designees shall eafement over and across the Common Area for access and use of such facilities at no charge; and the OwneNthergoffor residential purposes; provided that: (i) all rentals must be for terms of at least six (6) months; and (ii)‘s@ portigh of a Lot (other than the entire Lot) may be rented. All leases shall be in writing. Notice of any lease, together with such additional information as may be required by the Board, will be remitted to the Association by the Owner on or before the expiration of ten (10) days after the effective date of the lease. Each _ lease must provide, or be deemed to provide, that the Board shall have the right to terminate the lease upon default by the tenant in observing any provisions of the Restrictions. Regardless of whether or not expressed in the applicable lease, all Owners shall be jointly and severally liable with the tenants of such Lot to the Association for any amount which is required by the Association to effect such repairs or to pay any claim or any injury or damage

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l be jointly and severally liable with the tenants of such Lot to the Association for any amount which is required by the Association to effect such repairs or to pay any claim or any injury or damage to property caused by the negligence of the tenant of such Lot or for the acts or omissions of the tenant(s) of such Lot which constitute a violation of, or non-compliance with, the provisions of the Documents. All leases shall comply with and be subject to the provisions of the Restrictions and the provisions of same shall be deemed 8 expressly incorporated into any lease of a Lot. This Section 2.04 shall also apply to assignments and renewals of leases.

2.05 Subdividing. No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof without the prior written approval of the ACC provided, however, that when Declarant is the Owner thereof, Declarant may further divide and subdivide any Lot and convey any easements or other interests less than the whole, all without the approval of the ACC.

2.06 Hazardous Activities. No activities may be conducted on or within the Property and no Improvements constructed on any portion of the Property which, in the opinion of the Board, are or might be unsafe or ha to any person or property. Without limiting the generality of the foregoing, no firearms or fireworks nuisance shall be permitted to exist or operate upon to any other portion of the Property or to its Resi meaning and interpretation of s in this paragraph, the term "do pigs, miniature horses, goats domestic household pet than four (4) cats apdd st be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse,

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this paragraph, the term "do pigs, miniature horses, goats domestic household pet than four (4) cats apdd st be kept within enclosed areas which must be clean, sanitary, and reasonably free of refuse, 2 é at all times. No pet may be left unattended in front yards, porches or other outside area. Al] pet waste will b€ removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed and inoculated as required by Applicable Law. If, in the opinion of the Board, any pet becomes a source of unreasonable annoyance to others, or the owner of the pet fails or refuses to comply with these restrictions, the Owner, upon receipt of written notice from the Association, may be required to remove the pet from the Property.

2.10 Rubbish and Debris. As determined by the Board, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or Residents. Refuse, garbage, and trash must be kept at all times in covered containers, and such, containers must be 9 kept within enclosed structures or appropriately screened from view. Each Owner will contract with an independent disposal service to collect all garbage or other wastes, if such service is not provided by a governmental entity or the Association.

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

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ne of the following locations: (a) inside the garage of the single-family residence constructed on the Lot; or (b) behind the single-family residence or fence constructed on the Lot in such a manner ¢ trash container and recycling bin are not visible from any street, alley, or adjacent Lot.

The Board shall have the right to specify additional locations on each Owner's Lot in which trae recycling bins must be stored.

2.12 Maintenance. The Owners of each Lot shall jointly and severally have the d Q includes, but is not limited to the following, which shall be performed i as determined by the Board, in its sole discretion: timely (i) Prompt removal of all litter, trash, refuse, and tes, (ii) Lawn mowing.

(iii) Tree and shrub pruning. © (iv) Watering.

(v) = oO na Es = 2 z — ga ° = Q a = ndscape Area - Owner's Obligation to Maintain Landscaping. Each Owner will be Owner's sole cost and expense, for maintaining, mowing, replacing, pruning, and irrigating the (the "ST Landscape Area") unless the responsibility for maintaining the ST Landscape Area is performed by the Association.

2.14 Antennae. Except as expressly provided below, no exterior radio or television antennae or aerial or satellite dish or disc, shall be erected, maintained or placed on a Lot without the prior written approval of the ACC; provided, however, that: (i) an antenna designed to receive direct broadcast services, including direct-to-home satellite services, that is one meter or less in diameter; or 10 (ii) an antenna designed to receive video programing services via multipoint distribution, services, including multi-channel multipoint distribution services, instructional television fixed services, and local multipoint distribution services, that is one meter or less in diameter or diagonal measurement; or

g multi-channel 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 or radio broadcast signals; (collectively, (i) through (iii) are referred to herein as the ‘Permitted Antennas") will be permitted subject to reasonable requirements as to location and screening as may be set forth in rules adopted by the ACC consistent with Applicable Law, in order to minimize obtrusiveness as viewed from streets and adjacent property.

2.15 Location of Permitted Antennas. A Permitted Antenna may be installed solely on the Owa shall not encroach upon any street, Common Area, or any other portion of the Property. A Permittgd= be installed in a location on the Lot from which an acceptable quality signal can be obtaine visible from the street and the Property, other than the Lot. In order of preference, the locati Antenna which will be considered least visible by the ACC are as follows: (i) Attached to the back of the principal single-family residence Kon pe ot} of the Permitted Antenna any higher than the lowest point of the roofline aya 9 Omurlew of adja and the street; then and the street.

The ACC may, from time to time, modify, amend placement of Permitted Antennas. Satellite an 2 m¢te dishes, are permitted, HOWEVER, you are require p These Rules may be modified by the ACC from ti regarding Installation and placement.

¢rules regarding installation and placement.

ease contact the ACC for the current rules 2.16 Signs. Unless otherwise prok public view on any Lot without the y (i) (ii) (iii) one maximum face are

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ment.

¢rules regarding installation and placement.

ease contact the ACC for the current rules 2.16 Signs. Unless otherwise prok public view on any Lot without the y (i) (ii) (iii) one maximum face are pplitical signs may be erected provided the sign: (a) is erected no earlier than the 90" day before , elgction to which the sign, relates; (b) is removed no later than the 10" day after the date of the election\g the sign relates; and (c) 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; (v) permits as may be required by legal proceedings or a governmental entity; (vi) a religious item on the entry door or door frame of a residence (which may not extend beyond the outer edge of the door frame), provided that the size of the item(s), individually or in combination, with other religious items on the entry door or door frame of the residence, does not exceed twenty-five (25) square inches; and as approved by ACC.

11 (vii) a "no soliciting" and "security warning" sign near or on the front door to their residence, provided, that the sign may not exceed twenty-five (25) square inches.

2.17 Flags - Approval Requirements. An Owner is permitted to display the flag of the United States of America, the flag of the State of Texas, or an official or replica flag of any branch of the United States Military ("Permitted Flag") and permitted to install a flagpole no more than five feet (5') in length affixed to the front of a residence near the principal entry or affixed to the rear of a residence ("Permitted Flagpole"). Only two (2) permitted

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stall a flagpole no more than five feet (5') in length affixed to the front of a residence near the principal entry or affixed to the rear of a residence ("Permitted Flagpole"). Only two (2) permitted Tagpores are allowed per residence. A Permitted Flag or Permitted Flagpole need not be approved in advance by the Application, must comply with the following; (i) No more than one (1) Freestanding Flagpole OR no permitted per Lot, on which only Permitted Flags may be displa (ii) Any Permitted Flagpole must be no longer thart Flagpole must be no more than twenty feet (20') in height feet (5 ft) in length, and any Freestanding (iii) Any Permitted Flag displayed oiker feet in width (3'xS'); (vi) Each P€rrh lasting materials with-a.fini residence; ernfitted Flag, Permitted Flagpole and Freestanding Flagpole must be maintained in good condition amd an griorated Permitted Flag or deteriorated or structurally unsafe Permitted Flagpole or A Permitted Flag may be illuminated by no more than one (1) halogen landscaping light of low beam intensity which shall not be aimed towards or directly affect any neighboring Lot; and (ix) Any external halyard of a Permitted Flagpole or Freestanding Flagpole must be secured so as to reduce or eliminate noise from flapping against the metal of the Permitted Flagpole or Freestanding Flagpole.

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

2.19 Tanks. The ACC must approve any tank used or proposed in connection with a residence, including tanks for storage of fuel, water, oil, or LPG, and including swimming pool filter tanks. No elevated tanks of any kind may 12 be erected, placed or permitted on any Lot without the advance written approval of the ACC. All permitted tanks

, or LPG, and including swimming pool filter tanks. No elevated tanks of any kind may 12 be erected, placed or permitted on any Lot without the advance written approval of the ACC. All permitted tanks must be screened from view in accordance with a screening plan approved in advance by the ACC. This provision will not apply to a tank used to operate a standard residential gas grill.

2.20 Temporary Structures, Outbuildings, Sheds and Detached Buildings. No tent, shack, or other temporary building, Improvement, or structure shall be placed upon the Property without the prior written approval of the ACC.

2.21 Unsightly Articles; Vehicles. No article deemed to be unsightly by the Board will be permitted to remain on any Lot so as to be visible from adjoining property or from public or private thoroughfares. Without lini motorcycles, motor scooters, all-terrain vehicles and garden and lawn maintenance equipment musg times except when in actual use, in enclosed structures or screened from view and no repgi work may be done on any of the foregoing, or on any automobile (other than minor emerge in enclosed garages or other structures. Service areas, storage areas, compost piles must be 4 - from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materi visible on any Lot or to be parked on any roadway within the Property manner.

permitted on any public right of way. They must be permanently attached to the house o: ept in good condition. The ACC reserves the right to be amended from time toffime. Failute yé comply with any of the Restrictions shall constitute a violation of the Ga ihe hgainst the Owner in accordance with Section 6.12 of this Declaration, and shall omsto-re he Association, the ACC, or by an aggrieved Owner. Without limiting any rights

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itute a violation of the Ga ihe hgainst the Owner in accordance with Section 6.12 of this Declaration, and shall omsto-re he Association, the ACC, or by an aggrieved Owner. Without limiting any rights or poweyy*s , atidy, the Board may (but shall not be obligated to) remedy or attempt to remedy any violation ‘ef al te Visions of Restrictions, and the Owner whose violation has been so remedied shall be per; ssociation for all costs and expenses of effecting (or attempting to effect) such remedy. If sud th pay such costs and expenses upon demand by the Association, such costs and expenses (plus at the rate of one“and one-half percent (1-1/2%) per month) shall be assessed against and chargeable to the Owner's Lot(s). Any such amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Declaration for Assessments and may be collected, by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner's Lot(s)..Each such Owner shall identify and hold harmless the Association and its officers, directors, employees and agents from any cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association's acts or activities under this Section 2.23 (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Association's negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Association's gross negligence or willful misconduct. “Gross negligence" as used herein does not include simple negligence, contributory negligence or 13 similar negligence short of actual gross negligence.

ation's gross negligence or willful misconduct. “Gross negligence" as used herein does not include simple negligence, contributory negligence or 13 similar negligence short of actual gross negligence.

2.24 Liability of Owners for Damage to Common Area. No Owner shall in any way alter, modify, add to or otherwise perform any work upon the Common Area without the prior written approval of the Board. Each Owner shall be liable to the Association for any and all damages to: (i) the Common Area and any Improvements constructed thereon; or (ii) any Improvements constructed on any Lot, the maintenance of which has been, assumed by the Association, which damages were caused by the neglect, misuse or negligence of such Owner or Owner's family, or by any Resident of such Owner's Lot, or any guest or invitee of such Owner or Resident. The full cost of all repairs of such damage shall be an Individual Assessment against such Owner's Lot, secured by a lien against such Owner's Lot and collectable in the same manner as provided in Section 6.10 of this Declaration.

2.25 No Warranty of Enforceability. Declarant makes no warranty or representation as to the pe validity or enforceability of the Restrictions. Any Owner acquiring a Lot in reliance on ong Restrictions shall assume all risks of the validity and enforceability thereof and, by acquiring thg Declarant harmless therefrom.

willful acts, or omissions.

(a) Encroachments & Easement. If the Party Wall is on one Party Wall is nevertheless deemed, to be on the dividing line fo g ability for negligence or willful, acts or omissions. If an Owner is responsible for damage to or @lestfucti the Party Wall, that Owner will bear the entire cost of repair, aneing MorNeshas a right to file a claim of lien for the monies advanced in the Official

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wner is responsible for damage to or @lestfucti the Party Wall, that Owner will bear the entire cost of repair, aneing MorNeshas a right to file a claim of lien for the monies advanced in the Official Gene Bell County, Texas, and has the right to foreclose the lien as if it were a haptey 53 of the Texas Property Code, or its successor statute. The right of an Owner (e) No Tennis or Recreational Courts; Playscapes. No tennis, recreational, sport courts, playscapes or similar recreational facilities shall be constructed on any Lot unless expressly approved in advance by the ACC.

2.27 Decorations and Lighting. Unless otherwise permitted by Section 2./6(vi), no decorative appurtenances such as sculptures, birdbaths and birdhouses, fountains, or other decorative embellishments shall be placed on the residence or on the front yard or on any other portion of a Lot which is visible from any street, unless such specific items have been approved in writing by the ACC. Customary seasonal decorations for holidays are permitted without approval by the ACC but shall be removed within thirty (30) days of the applicable holiday. Outside lighting 14 fixtures shall be placed so as to illuminate only the yard of the applicable Lot and so as not to affect or reflect into surrounding residences or yards. No mercury vapor, sodium or halogen light, or light emitting diode (LED) shall be installed on any Lot which is visible from any street unless otherwise approved by the ACC.

2.28 Clotheslines; Window Air Conditioners. No clotheslines and no outdoor clothes drying or hanging shall be permitted within the Property, nor shall anything be hung, painted or displayed on the outside of the windows (or

ow Air Conditioners. No clotheslines and no outdoor clothes drying or hanging shall be permitted within the Property, nor shall anything be hung, painted or displayed on the outside of the windows (or inside, if visible from the outside) or placed on the outside walls or outside surfaces of doors of any of the residence, and no awnings, canopies or shutters shall be affixed or placed upon the exterior walls or roofs of residences, or any part thereof, nor relocated or extended, without the prior written consent of the ACC. Window air conditioners are prohibited.

2.29 Dumping. No portion of the Property shall be used or maintained as a dumping ground forfubbi new or used lumber or wood, metal scrap, garbage or other waste, except that such material may be-keptig_aread of the Property designated for this purpose by Declarant (in connection with its construction) or b: , provided that these materials are kept in sanitary containers in a clean and sanitary condition. O se containers for collection only in the designated areas and only on the day these refuse materj te’ bg’ collected.

uses that may be harmful or affect the ambience or aesthetic appeal of th¢ Py ; te Testeiefions are not intended écessary for the development of the Property or the construction of Improvements thereon. The restrictidgs i ficle shall not be binding on Declarant or Homebuilders in the performance of any work uired inNerder tg/“complete construction of the Property, or any portion thereof.

PIONS 3.01 Approval for Construction. Unless und € Declarant, no Improvements shall be constructed upon any Lot without the prior written a f accordance with Article 7 of this Declaration.

3.02 Plan Repetition. The AC particular Lot if a substantially sf plan or elevation is proposed.

percent (80%) masonry,

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Lot without the prior written a f accordance with Article 7 of this Declaration.

3.02 Plan Repetition. The AC particular Lot if a substantially sf plan or elevation is proposed.

percent (80%) masonry, brick, brick veneer, ste neWVepgeer, or stucco shall be considered masonry. Notwithstanding the foregoing, in itypromulgates an ordinance requiring a higher percentage of masonry than that e requirements of this Declaration shall increase accordingly.

yare Footage. Unless otherwise approved in advance and in writing by the ACC, the quare footage for each residence, exclusive of open or screened porches, terraces, patios, decks, a ayages, all dwellings constructed on Lots with frontage on Salado Creek must have at least Three Thousartd square feet of heated living space. All dwellings on all other Lots must have at least Two Thousand Five Hundred (2,500) square feet of heated living space. ; 3.05 Garages. Each residence constructed upon a Lot shall have a private attached garage for not less than two (2) automobiles. The location, orientation and opening of each garage to be located on a Lot shall be approved in advance of construction by the ACC. All garages shall be maintained for the parking of automobiles, may not be used for storage or other purposes which preclude its use for the parking of automobiles, and no garage may be permanently enclosed or otherwise used for habitation.

15 3.06 Setbacks. All buildings and structures must be constructed, placed and maintained in conformity with setback lines as follows: (a) Front and Back Set Back Lines shall be twenty-five feet (25); (b) Side Set Back Lines shall be ten feet (10).

3.07 Fences; Sidewalks. Fences are not required to be constructed. However, all fences constructed must

k Set Back Lines shall be twenty-five feet (25); (b) Side Set Back Lines shall be ten feet (10).

3.07 Fences; Sidewalks. Fences are not required to be constructed. However, all fences constructed must comply with all Applicable Law, the provisions of this Declaration, and meet with the approval of the ACC. Unless otherwise approved by the ACC, all fencing shall be constructed of masonry, wood and/or wrought iron, ornamental metal similar in appearance to wrought iron and acceptable to the ACC) and shall not exceed si in height. A fence with masonry columns and wrought iron/ornamental metal pickets shall be per respect to specific lots in the subdivision, the following requirements shall be applied: tye asonry walls i ines, i in height. ing constru ton Ya) 2 Salado Creek must be constructed with columns of stone or brick masonryy4nd_w shtirgn/ornamental metal fence, wall or hedge will be erected or maintains elevation of the residence constructed on the Lot.

Declarant) must be approved in advance by the ACC’ gd by the ACC, match the color of the surface from which they glass, which may not be mirrored, tinted or lined with aluminum or , including, without exterior stairways must, unless project. No highly reflective fing insulation) shall be used on—e 3.11 Construction Activities. The Restrictions will not be construed or applied so as to unreasonably interfere with or prevent normal construction activities during the construction of Improvements by an Owner (including Declarant or a Homebuilder) upon or within the Property. Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or

Page 17

upon or within the Property. Specifically, no such construction activities will be deemed to constitute a nuisance or a violation of the Restrictions by reason of noise, dust, presence of vehicles or construction machinery, posting of signs or similar activities, provided that such construction is pursued to completion with reasonable diligence and conforms to usual construction practices in the area. In the event that construction upon any Lot does not conform to usual practices in the area as determined by the ACC in its sole and reasonable judgment, the ACC will have the authority to seek an injunction to stop such construction. In addition, if 16 during the course of construction upon any Lot there is excessive accumulation of debris of any kind which would render the Lot or any portion thereof unsanitary, unsightly, offensive, or detrimental to it or any other portion of the Property, then the ACC may contract for or cause such debris to be removed, and the Owner of the Lot will be liable for all reasonable expenses incurred in connection therewith.

3.12 Roofing, The roof pitch of dormers, porches and other similar accessory structures attached to the primary residence shall be exempt from this requirement, but nonetheless subject to approval by the ACC. The roofs of all buildings shall be constructed or covered with materials to include metal (standing-seam only; all other corrugated metal roofing products, including without limitation R-panel and U-panel products, are expressly prohibited), tile, slate, fiberglass or dimensional shingles of a weathered wood color or other color approved by the AC minimum ee manufacturer's guarantee. All roof colors will be eh bouts and harmonious forth in this Section 3.12. Any other type of roofing materi approval of the ACC.

Pages 17–18

or other color approved by the AC minimum ee manufacturer's guarantee. All roof colors will be eh bouts and harmonious forth in this Section 3.12. Any other type of roofing materi approval of the ACC.

3.13 Swimming Pool. Any swimming pool constructed on‘. ust be enclosed with a fence or other enclosure device completely surrounding the swimay a4 minimum, satisfies all Applicable Law.

Solar Energy Device. Until expiration or termination of the Development Period, the Decla ¢ installation of any Solar Energy Device. After expiration or termination of the Development (a) Application. 2 with the following information; & proposed installation location of the Solar Energy Device; and (ii) a description of the Solar Exergy. Devicd, jricluding the dimensions, manufacturer, and photograph or other accurate depiction (the "Solar Ap ion) Only an Owner may only submit a Solar Application. The Solar Application shall be submitted in-aegohda ip negated ifa Owners of Lots immediately adjacent to the Owner/applicant provide written approval of the proposed placement. Any proposal to install a Solar Energy Device on property owned or maintained by the Association or property owned in common by Members of the Association must be approved in advance and in writing by the Board, and the Board need not adhere to this Section 3.14 when considering any such request.

(c) Approval Conditions. Unless otherwise approved in advance and in writing by the ACC, each Solar Application and each Solar Energy Device to be installed in accordance therewith must comply with the following: 17 (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

: 17 (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 will be located on the roof of the residence, the ACC 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 ACC.

If the Owner desires to contest the alternate location proposed by the ACC, the Owner should submit to the ACC Owner’s written notice of appeal, together with information demonstrating that the Owner's proposed location meets the foregoing criteria. If the Solar Energy Device will be located in the fenced ap€a of the Owner's Lot or patio, no portion of the Solar Energy Device may extend above the fence line.

the Solar Energy Device must conform to the slope of the roof and the top edge of thé parallel to the roofline; (c) the frame, support brackets, visible piping or wiring Energy Device must be silver, bronze or black.

(d) This Section 3.14 shall be construed and interpreted i Prop. Code, as amended from time to time, or its successor statutes, if rep 3.15 Rainwater Harvesting Systems. Rain barrels or rainwater har¥e System") may be installed with the advance written approval of ite the ACC with the following information: (a) the proposed insta Xion of the Rainwater Harvesting System;

Page 19

in barrels or rainwater har¥e System") may be installed with the advance written approval of ite the ACC with the following information: (a) the proposed insta Xion of the Rainwater Harvesting System; and (b) a description of the Rainwater HarvestingsSystdmf i e color, dimensions, manufacturer, and photograph or other accurate depiction (the "Rain submitted by an Owner.

(b) Approval Process. Thg Declaration. Any proposal to install J (c) Approval Conél Rain System Application ande comply with the following Awater Harvesting System must be consistent with the color scheme of the e Owner's Lot, as reasonably determined by the ACC.

Phe Rainwater Harvesting System does not include any language or other content that is Splayed on such a device.

ii) The Rainwater Harvesting System is in no event located between the front of the ge 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 ACC.

(d) Guidelines. If the Rainwater Harvesting System will be installed on or within the side yard of a Lot, or would otherwise be visible from a street, the Common Area, or another Owner's Lot, the ACC may regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System. Accordingly, when submitting a Rain System Application, the application should describe methods proposed by the Owner to shield the Rainwater Harvesting System from the view of any street, Common Area, or another Owner's Lot. When 18 reviewing a Rain System Application for a Rainwater Harvesting System that will be installed on or within the side

ting System from the view of any street, Common Area, or another Owner's Lot. When 18 reviewing a Rain 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, or another Owner's Lot, any additional requirements imposed by the ACC to regulate the size, type, shielding of, and materials used in the construction of the Rainwater Harvesting System, may not prohibit the economic installation of the Rainwater Harvesting System, as reasonably determined by the ACC.

3.16 Landscaping. Within 30 days of completion of a new Residence, the Owner of each Lot shall have the Lot fully landscaped to include a fully sodded and irrigated yard, trees, plants, shrubbery, or other landscaping improvements. All landscaping should fit the harmony and design guidelines of the subdivision and must be of the ACC. Each Lot on which a Residence is constructed shall have an underground water sprinkleg purpose of providing sufficient water to preserve and maintain the landscaping in a healthy, attract) 3.19 Guest house, Par g R g. One detached guest house, party house, pool house or other type of detached building ( ta i may be built on a Lot, provided said Detached Building contains no less than five hun atch the roof pitch and masonry of the residence on the pt, nor may it be occupied for (i) a period exceeding thirty (30) consecutive days, or (ii) a tota f any twelve (12) month period, by any person other than a household servant or a person rekatg AvO'degrees of consanguinity to the Owner, without the express written consent of the Board, in its soleland4 e diScgetion. Exceptions to this Section 3.19 may be granted by the ACC ARTICLE 4 3 SUBDIVISION RESIDENTIAL COMMUNITY, INC.

Page 20

he Owner, without the express written consent of the Board, in its soleland4 e diScgetion. Exceptions to this Section 3.19 may be granted by the ACC ARTICLE 4 3 SUBDIVISION RESIDENTIAL COMMUNITY, INC.

Association will be a nonprofit corporation created for the purposes, charged with the e powers of a Texas non-profit corporation. Neither the Certificate nor Bylaws will for any fierwise changed or interpreted so as to be inconsistent with this Declaration.

Mandatory Membership. Any person or entity, upon becoming an Owner, will 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.

If you acquire a Lot you automatically become a member of the Association.

4.03 Governance. The Board will consist of at least three (3) persons elected at the annual meeting of the Association, or at a special meeting called for such purpose. Notwithstanding the foregoing provision or any 19 provision in this Declaration to the contrary, Declarant will have the sole right to appoint and remove all members of the Board until the tenth (10") anniversary of the date this Declaration is Recorded. Not later than the tenth (10") anniversary of the date this Declaration is Recorded, or sooner as determined by Declarant, the Board will call a meeting of Members of the Association for the purpose of electing one-third of the Board (the “Initial Member Election Meeting"), which Board member(s) must be elected by Owners other than the Declarant. Declarant shall continue to have the sole right to appoint and remove two-thirds of the Board from and after the Initial Member

hich 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 Board from and after the Initial Member Election Meeting until expiration or termination of the Development Period.

4.04 Voting Rights. The right to cast votes and the number of votes which may be cast for election of members to the Board (except as provided by Section 4.03) and on any other matters to be voted on by the Memb ill be calculated as set forth below.

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

(ii) In addition to the votes to which Declarant is entitled by reason of Sectio (1) vote outstanding in favor of any other person or entity, Declarant will have four (4 expiration or termination of the Development Period.

(iii) When more than one person or entity owns a portion of te fee g | in any Lot, all such persons or entities will be Members. The vote or votes (or fraction therfoff for su be exercised by the 4.05 Powers. The Association will have the powers of a Rexa\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 Applicable Law or this ati ithout in any way limiting the generality of the two preceding sentences, the Board, acting oysshalt ssqctation, will have the following powers at all times: (a) Rules, Bylaws and Community ; make, establish and. promulgate, and in its discretion to amend from time to time, or repeal a hules, regulations, Bylaws and, Community Manual not in conflict with this Declaration, as itdée gring any and all aspects of the Property (including the

Page 21

retion to amend from time to time, or repeal a hules, regulations, Bylaws and, Community Manual not in conflict with this Declaration, as itdée gring any and all aspects of the Property (including the 3 eAssociation. Any Rules, and any modifications to existing t be approved in advance and in writing by the Declarant until Opies of the Restrictions available for inspection by the Owners, Mortgagees, and Mortgage upon request during normal business hours.

Kight of Entry and Enforcement. To enter at any time without notice in an emergency (or in the case of & ergency, after twenty-four (24) hours written notice), without being liable to any Owner or Resident, upon any Lot and into any Improvement thereon for the purpose of enforcing the Restrictions or for the purpose of maintaining or repairing any area, Improvement or other facility to conform to the Restrictions. The expense incurred by the Association in connection with the entry upon any Lot and the maintenance and repair work conducted thereon or therein will be a personal obligation of the Owner of the Lot so entered, will be deemed an Individual Assessment against such Lot, will be secured by a lien upon such Lot, and will be enforced in the same manner and to the same extent as provided in Article 6 hereof for Assessments. The Association will have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce, by mandatory injunction or 20 otherwise, or to restrain and enjoin, any breach or threatened breach, of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce

join, any breach or threatened breach, of the Restrictions. The Association is also authorized to settle claims, enforce liens and take all such action as it may deem necessary or expedient to enforce the Restrictions; provided, however, that the Board will never be authorized to expend any Association funds for the purpose of bringing suit against Declarant, or its successors or assigns. The Association may not alter or demolish any Improvements on any Lot other than Common Area in enforcing these Restrictions before a judicial order authorizing such action has been obtained by the Association, or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH SUCH OWNER AND RESIDENT WILL INDEMNIFY AND HOLD HARMLESS THE ASSOCIATION, ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION INCURRED OR THAT ASSOCIATION'S NEGLIGENCE IN CONNECTION THEREWITH), EXCEPT FOR SUCH DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF ACTION ARISING BY RE# NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SI SHORT OF ACTUAL GROSS NEGLIGENCE.

(f) Legal and Accounting Services. To retain and pay for legal apd ac ond proper in the operation of the Association.

(g) (i) ch) (iii) (iv) and/or (v) Any $f Nothing set forth above other facility in a way that would by Applicable Law. In addition,undl éxpifation or termination of the Development Period, any grant or conveyance under this Section 4.05(; nde DSaprove in advance and in writing by the Declarant.

& e-refain and pay for the services of a person, or firm (the "Manager"), which may jate of Declarant, to manage and operate the Association, including its property, to the

Page 22

n writing by the Declarant.

& e-refain and pay for the services of a person, or firm (the "Manager"), which may jate of Declarant, to manage and operate the Association, including its property, to the adopt traasfer fgés, resale certificate fees or any other fees associated with the provision of management services to the Association or its Members. THE MEMBERS HEREBY RELEASE THE ASSOCIATION AND THE MEMBERS OF THE BOARD AND COMMITTEE MEMBERS FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER OR FUNCTION SO DELEGATED.

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

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

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

other property, or to provide any service, including but not limited to cable, utility, or telecommunieé or perform any function on behalf of Declarant, the Board, the Association, or the Memb (m) Property Ownership. To acquire, own and dispose of all manner of reakg érsefiak, property,

or telecommunieé or perform any function on behalf of Declarant, the Board, the Association, or the Memb (m) Property Ownership. To acquire, own and dispose of all manner of reakg érsefiak, property, including habitat, whether by grant, lease, easement, gift or otherwise. During Period, all acquisitions and dispositions of the Association hereunder must be approved in af ing by the Declarant.

(n) Allocation of Votes. To determine votes when permitted ()) Membership Privileges. To establish Rules and any Improvements thereon.

4.06 Acceptance of Common Area. The Association m4 and intangible personal property and real ae Association interests in real or personal property j general public, and the Association will accept such t unimproved and may consist of fee simple title d thereafter will be maintained as Common Area by the Association for the benefit of the ,Bxpparty lane ¢ general public subject to any restrictions set forth in the deed or other instrument transferrj assig ch property to the Association. Upon Declarant's written request, the Association will! eslarant any unimproved real property that Declarant originally conveyed to the Association, as i 4.07 Maintenance of Commo 4.08 ing under the Certificate or Bylaws of the Association, the Association will indemnify fs, a party, or is threatened to be made a party to any threatened pending or completed action determined By the Board or a court of competent jurisdiction that he or she: (i) acted in good faith and in a manner he or she reasonably believed, to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The

Page 23

, to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit or proceeding by settlement, or upon a plea of nolo contendere or its equivalent, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

22 4.09 Insurance. The Board may purchase and cause to be maintained, at the expense of the Association, insurance on behalf of any person who is acting as a director, officer, committee member, employee, servant or agent of the Association against any liability asserted against or incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Association would have the power to indemnify such person against such liability or otherwise.

4.10 Bulk Rate Contracts. Without limitation on the generality of the Association powers set out in Section 4.05 hereinabove (except that during the Development Period, all Bulk Rate Contracts must be approved in advance and in writing by the Declarant), the Association will have the power to enter into Bulk Rate Contracts at any time and from time to time. The Association may enter into Bulk Rate Contracts with any service providers chogé Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Decl’ owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on

é Board (including Declarant, and/or any entities in which Declarant, or the owners or partners of Decl’ owners or participants, directly or indirectly). The Bulk Rate Contracts may be entered into on provisions as the Board may determine in its sole and absolute discretion. The Association ma i Owner's Lot. In this regard, it is agreed and understood that, if any Owner fails to pay an Owner under the terms of any Bulk Rate Contract, then the Association will be entitled_te apse of at least twelve ritten notice to such Owner (which may run concurrently with such 12 day period), in addition td they rights and remedies available pursuant to Applicable Law, terminate, in such manner as the BOs id least five (5) days prior to a stated date of fenmination, prominently displayed on the notice. The notice wjtkincl Resident of such Owner's Lot) can make arrangeme 4.11 Community Systems. The AS<a provide Community Systems.

maintenance, and upgrades or Owner acknowledges that intera and the Association, or any of, System or service user shall he-e Community Systems and £ ardiess of whether or not such interruption is caused by reasons within the service provider's control Community Systems as the Board determines appropriate. Each ity Systems and services will occur from time to time. Declarant € successors or assigns shall not be liable for, and no Community 6ntribute to Revenues of the Association. Declarant shall have the right, but not Sretion and from time to time, to contribute to the revenues of the Association. At the 4.12 Declaran accrue interest, compounded monthly, from the date it is made until the date of its repayment, at Jlicable Federal Rate ("AFR"), as published by the Internal Revenue Service, and adjusted each e AFR for such month.

Page 24

t, compounded monthly, from the date it is made until the date of its repayment, at Jlicable Federal Rate ("AFR"), as published by the Internal Revenue Service, and adjusted each e AFR for such month.

4.13 Protection of Declarant's Interests. Despite any assumption of control of the Board by Owners other than Declarant, until the expiration or termination of the Development Period, the Board is prohibited from taking any action which would discriminate against Declarant, or which would be detrimental to the sale of Lots owned by Declarant. Declarant shall be entitled to determine, in its sole and absolute discretion, whether any such action discriminates or is detrimental to Declarant. The Board will be required to continue the same level and quality of maintenance, operations and services as that provided immediately prior to assumption of control of the Board by Owners other than Declarant until the expiration or termination of the Development Period.

23 4.14 Administration of Common Area. The administration of the Common Area by the Association shall be in accordance with the provisions of Applicable Law and the Restrictions, and of any other agreements/ documents, amendments or supplements to the foregoing which may be duly adopted or subsequently required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi-governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area.

EXPRESSLY OR IMPLIEDLY, THE MERCHANTABILITY OR FITNESS FOR USE OF,

ction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area.

EXPRESSLY OR IMPLIEDLY, THE MERCHANTABILITY OR FITNESS FOR USE OF, SECURITY SYSTEM OR SERVICES, OR THAT ANY SYSTEM OR SERVICES ¥ INTRUSIONS, NOTIFY AUTHORITIES OF FIRES OR OTHER OCCURRENCES, OR TH.

DECLARANT, A HOMEBUILDER, NOR THE ASSOCIATION, OTHERS LOCATED ON THE LOT AND WILL NOT BE RESPO bLABLE FOR LOSSES, INJURIES OR DEATHS RESULTING FROM SUCH OCCURRENCE§ i emiely difficult and impractical of property receiving security services through the Commufity stems agrees that neither the Declarant, a Homebuilder, nor the Association, or their successors or assigns a as liability for loss or damage to property or alarm, interruption of security service or failure to security system; (b) any defective or damaged equi vées for himself, his grantees, tenants, guests, invitees, ould result from a failure of performance or operation, or security services through the Communi licensees and family members that if g rity service provider or its officers, agents, or employees, the he Association, or their successors or assigns for loss, damage, injury or death shall be limited tg eeding Two Hundred Fifty U.S. Dollars ($250.00), which limitations apply irrespective of the cause of the loss or damage and notwithstanding that the loss or damage results Declarant, a Homebut e-Association, or their successors or assigns be liable for consequential damages, wrongful death, ARTICLE § INSURANCE 5.01 ance. Each Owner will be required to purchase and maintain commercially standard insurance on the Improvements located upon such Owner's Lot. The Association will not be required to maintain insurance on the

Page 25

ach Owner will be required to purchase and maintain commercially standard insurance on the Improvements located upon such Owner's Lot. The Association will not be required to maintain insurance on the Improvements constructed upon any Lot. The Association may, however, obtain such insurance as it may deem necessary, including but not limited to such policies of liability and property damage insurance as the Board, in its discretion, may deem necessary, insurance premiums for such policies will be a common expense to be included in the assessments levied by the Association. The acquisition of insurance by the Association will be without prejudice to the right and obligation of any Owner to obtain additional individual insurance.

5.02 Restoration. In the event of any fire or other casualty, unless otherwise approved by the ACC the Owner will promptly repair, restore and replace any damaged or destroyed structures to their same exterior condition 24 existing prior to the damage or destruction thereof. Such repair, restoration or replacement will be commenced and completed in a good and workmanlike manner using exterior materials identical to those originally used in the structures damaged or destroyed. To the extent that the Owner fails to commence such repair, restoration or replacement of substantial or total damage or destruction within one hundred and twenty (120) days after the occurrence of such damage or destruction, and thereafter prosecute same to completion, or if the Owner does not clean up any debris resulting from any damage within thirty (30) days after the occurrence of such damage, the Association may commence, complete or effect such repair, restoration, replacement or clean-up, and such Owner

esulting from any damage within thirty (30) days after the occurrence of such damage, the Association may commence, complete or effect such repair, restoration, replacement or clean-up, and such Owner will be personally liable to the Association for the cost of such work; provided, however, that if the Owner is prohibited or delayed by Applicable Law from commencing such repair, restoration, replacement or clean- -up, the rights of the Association under this provision will not arise until the expiration of thirty (30) days 9ftk prohibition or delay is removed. If the Owner fails to pay such cost upon demand by the FSSORIaLON, thereof (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no g Aax ium lawful rate, than at the rate of one and one-half percent (1.50%) per month) will be added te chargeable to the Owner's Lot. Any such amounts added to the Assessments chargeable agaj secured by the liens reserved in the Declaration for Assessments and may be collected by any¢ Declaration for the collection of Assessments, including, but not limited to, foreclosure Against the Owner's Lot. EACH SUCH OWNER WILL INDEMNIFY AND HOLD HARMLES$ TION AND ITS OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES Y COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM OR CAUSE OF BD OR THAT MAY BR—FPHIS SECTION 5.02, OR COST OF ACTION ARISING BY REASON OF THE ASSOCIATION'S GROSS NEGLIG WILLFUL MISCONDUCT.

"GROSS NEGLIGENCE" AS USED HEREIN DOE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE OR SIMILAR NEGLIGE SXYORT OF ACTUAL GROSS NEGLIGENCE.

5.03 Mechanic's and Materialmen's Lien. Each Owne cleaned up by the Association pursuant to the rights acanted express mechanic's and materialman’s lien for the oe damaged or destroyed Improvement to the extent that th

Page 26

d Materialmen's Lien. Each Owne cleaned up by the Association pursuant to the rights acanted express mechanic's and materialman’s lien for the oe damaged or destroyed Improvement to the extent that th ure is repaired, restored, replaced or icle 5, hereby grants to the Association an stich repair, restoration, or replacement of the repair, restoration or replacement exceeds any eplacement and delivered to the Association. Upon request by the Board, and before the conamencémé aN éconstruction, repair, restoration or replacement, such Owner will execute all documents s Qe such mechanic's and materialmen's lien in favor of the Association.

ARTICLE 6 ANT EOR ASSESSMENTS 6.01 Assessments.

by-Board. Assessments established by the Board pursuant to the provisions of this st each Lot in amounts determined pursuant to Section 6.07 below. The total amount of he personal obligation of the Owner of the Lot against which the Assessment is levied and will be ereby granted and conveyed by Declarant to the Association against each such Lot and all ereon. The Association may enforce payment of such Assessments in accordance with the provisions Of this Article.

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

6.02 Maintenance Fund. The Board will establish a maintenance fund into which will be deposited all monies 25

ot obligate Declarant to continue payment of a subsidy to the Association in future years.

6.02 Maintenance Fund. The Board will establish a maintenance fund into which will be deposited all monies 25 paid to the Association and from which disbursements will be made in performing the functions of the Association under this Declaration. The funds of the Association may be used for any purpose authorized by the Restrictions and Applicable Law.

6.03 Regular Annual Assessments. The initial annual assessment will be $700 per year. Prior to the beginning of June Ist, the Board will estimate the expenses to be incurred by the Association during such year in performing its functions and exercising its powers under the Restrictions, including, but not limited to, the cost of all management, repair and maintenance, the cost of providing street and other lighting, the cost of administering and enforcing the Restrictions, and will estimate the amount needed to maintain a reasonable provision for contingencies of Assessments set i the Board in its sole and absolute discretion, and the Board's determination binding so long as it is made in good faith. If the sums collected prove inadequate for any reasgp sole and absolute discretion. Such working capital assessment need not b expressly authorized to levy working capital assessments of varying amo Notwithstanding the foregoing provision, the following assessment: (i) foreclosure of a deed of trust lien, tay ¢ or by the Association; (iii) voluntary transfer by an child, or parent, or (iv) to a qualifying trust, held for th Chapter 41, Texas Property Code. Additionally, purpose of resale to a Homebuilder (a " however, the working capital assessmg Development Owner for residentia business of constructing single-fay

Page 27

for th Chapter 41, Texas Property Code. Additionally, purpose of resale to a Homebuilder (a " however, the working capital assessmg Development Owner for residentia business of constructing single-fay 0 (i) is a Homebuilder; or (ii) acquires a Lot for the ill not be subject to the working capital assessment; sidence thereon for resale to a third party. In the event of any yg capital assessment to a particular Owner, the Declarant during the e€ to the Association immediately upon each transfer of title to the Lot, including ¢ Owner of such Lot to any subsequent purchaser or transferee thereof. The Declarant levy special "A: ssessments whenever in the Board's opinion such special Assessments are necessary to enable the Board to carry out the functions of the Association under the Restrictions. The amount of any special Assessments will be at the reasonable discretion of the Board. In addition to the special Assessments authorized above, the Association may, in any fiscal year, levy a special Assessment applicable to that fiscal year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Area.

6.06 Individual Assessments. In addition to any other Assessments, the Board may levy an Individual Assessment against an Owner and the Owner's Lot. Individual Assessments may include, but are not limited to: 26 interest, late charges, and collection costs on delinquent Assessments; reimbursement for costs incurred in bringing an Owner or the Owner's Lot into compliance with the Declaration; fines for violations of the Restrictions; transferrelated fees and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles;

o compliance with the Declaration; fines for violations of the Restrictions; transferrelated fees and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles; reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner's guests, invitees or Residents of the Owner's Lot; common expenses that benefit fewer than all of the Lots, which may be assessed according to benefit received; fees or charges levied against the Association on a per-Lot basis; and "pass through" expenses for services to Lots provided through the Association and which are equitably paid by each Lot according to the benefit received.

6.07 Amount of Assessment.

Assessments to be Levied. The Board shall levy Assessments against each "Assessment Unit" (as d€ Unless otherwise provided in this Declaration, Assessments levied pursuant to Section 6.03 and Sgette levied uniformly against each Assessment Unit allocated to a Lot.

(4).

Assessment Exemption. Notwithstanding anything in this Declaration tg levied upon Lots owned by Declarant.

Assessments against any un-platted or unimproved of the Assessments against any un-platted or unimproved portion of the P or any Lot; or (iii) reduce the levy of or any Lot. Declarant or the Board may yy public authority from Assessments. In the event Declarant elects to delay or reduce Assessments fpursvfgnt fath¥S Section, the duration of the delay or the amount of the reduction will be set forth, in a wits WOSh j extend or modify any delay or reduction.

Late Charges. If any Assessment is n payment may be required by the Boat’ collection of Assessments, incl never exceed the maximum chargé the lien against such Lot; provided, however, such charge will pder Applicable Law.

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Assessment is n payment may be required by the Boat’ collection of Assessments, incl never exceed the maximum chargé the lien against such Lot; provided, however, such charge will pder Applicable Law.

a transfer fee immediatel fyarisfer of ownership, in the amount of $250.00, or such other amount as may be established from timerte including reasonable attorney's fees. Such amounts will be levied as an Individual Assessment against the Lot owned by such Owner.

Assessment Lien and Foreclosure. The payment of all sums assessed in the manner provided in this Article is, together with late charges as provided in Section 6.08 and interest as provided in Section 6.09 hereof and all costs of collection, including attorney's fees as herein provided, secured by the continuing Assessment lien granted to the Association pursuant to Section 6.01(b) above, and will bind each Lot in the hands of the Owner thereof, and such Owner's heirs, personal representatives, successors or assigns. The aforesaid lien will be superior to all other liens and charges against such Lot, except only for: (i) tax liens; (ii) all sums secured by a first mortgage lien or first deed 27 of trust lien of record, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question and (iii) home equity loans or home equity lines of credit which are secured by a second mortgage lien or second deed of trust lien of record; provided that, in the case of subparagraphs (ii) and (iii) above, such Mortgage was Recorded before the delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such

he delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such subordination may be signed by an officer, agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment lien granted hereunder, prepare a written notice of 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, agents, or and enforce the Assessment lien granted hereunder. The Assessment liens and rights to foreclosure the addition to and not in substitution of any other rights and remedies the Association may have by Jaw ate-Or transfer of any Lot; except, however, that in the event of foreclosure of any lien superior, to\the Assessment lien, the lien for any Assessments that were due and payable before the foreclosure sale wi extinguished, provided that past-due Assessments will be paid out of the proceeds of such foreclosurgle only td erit that funds are available after lien of the type described in this Section 6.10, the ciat of lien relating to any lien for which written notice which the Association has already foreclosed such lie As provided above, except in circumstances in will be signed by an officer, agent, or attorney Assessment and after the lapse of at leask twelve A e such payment was due, the Association may, upon i ently with such twelve (12) day period) to such Owner, in addition to all other rights and re Board deems appropriate, any uff i sb/notice will consist of a separate mailing or hand delivery at least

Page 29

ently with such twelve (12) day period) to such Owner, in addition to all other rights and re Board deems appropriate, any uff i sb/notice will consist of a separate mailing or hand delivery at least gnnection, with, the title "termination notice" or similar language prominently displayed on the ¢ n&tice will include the office or street address where the Owner or the Resident of the Owner's arrangements for payment of the bill and for reconnection of service. Utility or cable service will not be ted on a day, or immediately preceding a day, when personnel are not available for the purpose of cote andtegonnecting such services. Except as otherwise provided by Applicable Law, the jltnetrelieve the Owner of such Lot or such Owner's transferee from liability for any five (5) days prior to a stated which ate_due axd unpaid. The Owner conveying such Lot will remain personally liable for all such sums until the same are fully paid, regardless of whether the transferee of the Lot also assumes the obligation to pay such amounts.

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

Yes, the Association: can foreclose on your Lot! If you fail to pay assessments to the Association, you may lose title to your Lot if the Association forecloses its assessment lien.

28 6.08 Exempt Property. The following area within the Property will be exempt from the Assessments provided for in this Article: All area dedicated and accepted by a public authority;

Pages 29–30

ssessment lien.

28 6.08 Exempt Property. The following area within the Property will be exempt from the Assessments provided for in this Article: All area dedicated and accepted by a public authority; The Common Area; and Any portion of the Property owned by Declarant.

6.09 Fines and Damages; Assessment.

Board Assessment. The Board may assess fines against an Owner for violations of the Restrictions-wht informing them, of Al or probable fines or guests, agents, or invitees. The Manager will have authority to send noticgé their violations and asking them to comply with the Rules and/or inforn (i) the Association, acting through an officer, Bog g q of the fine or damage charge not later than thirty (30) days afte Board; © (ii) the notice of the fine or damage char (iii) (iv) date of the notice to request a heg (v) the notice of ¢ violation (if the violation is reasonable opportunity to , herein provided/secured by the lien granted to the Association pursuant to Section 6.01(b) of this Declaration.

Unless otherwise provided in this Section 6.12, the fine and/or damage charge will be considered an Assessment for the purpose of this Article and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to this Article 6.

ARTICLE 7 ARCHITECTURAL CONTROL COMMITTEE Until Declarant has delegated its right to appoint and remove all members of the ACC to the Board as provided in 29 Section 7.02(a) below, the ACC will be acting solely in Declarant's interest and will owe no duty to any other Owner or the Association. Notwithstanding any provision in this Declaration to the contrary, Declarant may appoint a single person to exercise the rights of the ACC.

and will owe no duty to any other Owner or the Association. Notwithstanding any provision in this Declaration to the contrary, Declarant may appoint a single person to exercise the rights of the ACC.

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

7.02 Architectural Control Committee.

(a) Composition. The ACC will be composed of not more than three (3) persons, and responsibilities is dissolved by Declarant. Th xOlve, and appoint members of such subcommittees will reside exclusively with Declaran as Declarant has assigned its right to appoint members of the ACC to the Association. The ACC e the/right to employ consultants and advisors as it deems necessary or appropriate.

(b) Submission and Appi any Lot, the Owner thereof shall firg improvements, including site plaf exterior elevations, specific of gfior colors, and any other information deemed necessary by the ACC for the performance of its J ruction plans and specifications or, when an Owner desires solely to re-subdivide or consolidate @ proposal for such re-subdivision or consolidation, will be submitted in ; arid Specifications. Prior to the initiation of construction upon 8 the ACO” complete set of plans and specifications for the proposed exe placed or allowed on any Lot, until the plans and specifications thereof have been approved é a Majority of the members of the ACC. The ACC. may, in reviewing such plans and specificatiqns aside information that it deems proper; including, without limitation, any permits,

Page 31

have been approved é a Majority of the members of the ACC. The ACC. may, in reviewing such plans and specificatiqns aside information that it deems proper; including, without limitation, any permits, receipt ¥ ormation or material, which the ACC, in its sole discretion, may require. Site plans must be approved by the ACC prior to the clearing of any Lot, or the construction of any Improvements. The ACC may refuse to approve plans and specifications for proposed Improvements, or for the re-subdivision or consolidation of any Lot on any grounds that, in the sole and absolute discretion of the ACC, are deemed sufficient, including, but not limited to, purely aesthetic grounds.

Notwithstanding any provision to the contrary in the Declaration, the ACC may issue an approval to Homebuilders for the construction of Improvements based on the review and approval of plan types and adopt a procedure which differs from the procedures for review and approval of Improvements set forth in this Declaration.

30 (c) Design Guidelines. Declarant may adopt the initial Design Guidelines and, during the Development Period, will have the power from time to time, to adopt (unless previously adopted by Declarant), amend, modify, or supplement the Design Guidelines. Upon expiration or termination of the Development Period, the ACC, or any sub-committee thereof created pursuant to Section 7.02(a), will have the power from time to time, to amend, modify, or supplement the Design Guidelines; provided, however, that any amendment to the Design.

Guidelines made by a sub-committee will only apply to the Improvements under the jurisdiction of such sub-

fy, or supplement the Design Guidelines; provided, however, that any amendment to the Design.

Guidelines made by a sub-committee will only apply to the Improvements under the jurisdiction of such subcommittee, and during the Development Period, any such amendment, modification or supplement must be approved in advance and in writing by the Declarant. In the event of any conflict between the terms and provisions of the Design Guidelines and the terms and provisions of this Declaration, the terms and provisions of this submittal package, as required by this Declaration and the Design Guidelines, is assembled ACC. The ACC will have the authority to adopt such additional procedural and substgnti the performance of its duties hereunder.

(d) Actions of the ACC. The ACC may, by resolution unark, or more of its members, or an agent acting on its behalf, to takg’agy actions ed in writing, designate one any duties for and on behalf (e) Failure to Act. In the event that a lang a herein, and the ACC fails either to approve or reibers following such submission, rejection of such plans and and not in limitation, of the foregoing, any failu deemed a consent to such variance, andahe A€GS wrige required. ro spec 2 S by the ACC will be presumed. In furtherance, (f) Variances. The e opinion of the ACC, in its sole and absolute discretion, such jdenced in writing and must be signed by at least a Majority of the also be Recorded; provided however, that failure to record a variance will Ofer g1 eto any claim or cause of action against the ACC, including the Declarant or its designee, the Assan the Board. If a variance is granted, no violation of the covenants, conditions, or restrictions contained-n this BeofarAtion or the Design Guidelines will be deemed to have occurred with respect to

Page 32

an the Board. If a variance is granted, no violation of the covenants, conditions, or restrictions contained-n this BeofarAtion or the Design Guidelines will be deemed to have occurred with respect to the matter for whiéh- arianee’ was granted. The granting of such variance will not operate to waive or amend, any of t sons of this Declaration or file Design Guidelines for any purpose except as to the particularspropert} and in the particular instance covered by the variance, and such variance will not be considered plans and spécifications, and any variances granted by the ACC, will be valid for a period of one hundred and eighty (180) days only. If construction in accordance with such plans and specifications or variance is not commenced within such one hundred and eighty (180) day period and diligently prosecuted to completion, the Owner will be required to resubmit such plans and specifications or request for a variance to the ACC, and the ACC will have the authority to re-evaluate such plans and specifications in accordance with this Section 7.02(g) and may, in addition, consider any change in circumstances which may have occurred since the time of the original approval.

(h) No Waiver of Future Approvals. The approval of the ACC to any plans or specifications for any work done or proposed in connection with any matter requiring the approval or consent of the ACC will not be 31 deemed to constitute a waiver of any right to withhold approval or consent as to any plans and specifications on any other matter, subsequently or additionally submitted for approval by the same or a different person, nor will such

f any right to withhold approval or consent as to any plans and specifications on any other matter, subsequently or additionally submitted for approval by the same or a different person, nor will such approval or consent be deemed to establish a precedent for future approvals by the ACC.

(i) Fee. The ACC may establish a reasonable processing fee to defer the costs of considering any request for approvals submitted to it, which fee shall be paid at the time the request for approval is submitted. The ACC may employ an architect and/or other design professionals and the fee for such services shall be included in the review fees.

G) Nonliability of Committee Members. NEITHER DECLARANT, THE ACC, N ANY PARTNER, EMPLOYEE, DIRECTOR, OFFICER, COMMITTEE MEMBER, OR AGENT WILL BE LI TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE OR INJURY ARI OF THE PERFORMANCE OF THE ACC'S DUTIES UNDER THIS DECLARATION.

ARTICLE 8 MORTGAGE PROVISIONS The following provisions are for the benefit of holders, insurers and guara Property. The provisions of these Articles apply to the Declaration and thé 8.01 Notice of Action. An institutional holder, insurer, or guarantg Mortgage which provides a written request to the Association (such request to state the napf&and addr& yeh holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates eby becoming an "Eligible Mortgage Holder"), will be entitled to timely written notice of: Any condemnation loss or any casualty loss which affects a on which there is an Eligible Mortgage held, insure 8.02 Examination of Book: Gann arges. All taxes, assessments and charges that may become liens prior to first lien mortgages und plicable’ LAw will relate only to the individual Lots and not to any other portion of the Property.

Page 33

nn arges. All taxes, assessments and charges that may become liens prior to first lien mortgages und plicable’ LAw will relate only to the individual Lots and not to any other portion of the Property.

ARTICLE 9 GENERAL PROVISIONS 9.01 The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Declaration “will run with and bind the Property, and will inure to the benefit of and be enforceable by the Association, and every Owner, including Declarant, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Declaration is Recorded, and continuing through and including January 1, 2067, after which time this 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 in a resolution adopted by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, voting in person or by proxy at a meeting duly called for such purpose, written notice of which will be given to all 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.

32 Notwithstanding any provision in this Section 9.0] to the contrary, if any provision of this 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 surviving lineal descendant of the now living descendants of the initial members of the Board.

nts on land may be enforced, such provision will expire (twenty-one) 21 years after the death of the last surviving lineal descendant of the now living descendants of the initial members of the Board.

9.02 Eminent Domain. In the event it becomes necessary for any public authority to acquire all or any part of the Common Area for any public purpose during the period this Declaration is in effect, the Board is hereby authorized to negotiate with such public authority for such acquisition, and to execute instruments necessary for that purpose. Should acquisitions by eminent domain become necessary, only the Board need be made a party, and in basis of Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds 6 respective Lot.

forth the amendment ‘and certifying that such amendment has been approved by termination of the Development Period) and Members entitled to cast at lea 9.04 Roadway and Utility Easements. Declaran and maintain or cause to be created, located, reloga the Property then owned by Declarant,or an conduits, and other pipelines, cond vained by the Association, or areas conveyed to the roadways, sewer lines, water lines, electrical lines and ke’ terms and provisions of this Declaration are subordinate to Applicable Law.

yisions of this Declaration are enforceable to the extent they do not violate or conflict . If any provision of this Declaration is held to be invalid by any court of competent validity will not affect the validity of any other provision of this Declaration, or, to the extent 9.08 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or

Page 34

t affect the validity of any other provision of this Declaration, or, to the extent 9.08 Conflicts. If there is any conflict between the provisions of this Declaration, the Certificate, the Bylaws, or any Rules adopted pursuant to the terms of such documents, the provisions of this Declaration, the Certificate, the Bylaws, and the Rules, in such order, will govern.

9.09 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.

9.10 Acceptance by Grantees. Each grantee of Declarant of a Lot or other real property interest in’ the 33 Property, by the acceptance of a deed of conveyance, or 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 Declaration or to whom this Declaration is subject, and all rights, benefits and privileges of every character hereby granted, created, reserved or declared. Furthermore, each grantee agrees that no assignee or successor to Declarant hereunder will have any liability for any act or omission of Declarant which occurred prior to the effective date of any such succession or assignment. All impositions and obligations hereby imposed will constitute covenants running with the land within the Property, and will bind any person having at any time any interest or estate in the Property, and will inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance.

9.11 Damage and Destruction.

inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance.

9.11 Damage and Destruction.

estimates of the cost of repair, or both, are not made available to the Assd will be extended until such information will be made available.

(d) Special Assessment. If insurangé Common Area, and such proceeds are levy a special Assessment, as provided the cost of such repair or restoration, the Board will all Owners. Additional Assessments may be made in like the event that any proceeds of insurance policies are paid to Owners as a result of any damaé yon to any Common Area, such payments will be allocated based on Assessment Units and paid join Owrers and the holders of Mortgages or deeds of trust on their Lots.

9.12 No Partition.

ay be permitted in this Declaration or amendments thereto, no physical partition of the Common Area-e j be permitted, nor will any person acquiring any interest in the Property or any ition unless the Property in question has been removed from the provisions of this Declaratiof eclion 11.04 below. This Section 9.12 will not be construed to prohibit the Board from acquiring i g of tangible personal property or from acquiring title to real property that may or may not be subj 9.13 Any notice permitted or required to be given to any person by this Declaration will be in writing and ma ered either personally or by mail, or as otherwise required by Applicable Law. If delivery is made by mail, it will be deemed to have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to the person at the

Page 35

have been delivered on the third (3rd) day (other than a Sunday or legal holiday) after a copy of the same has been deposited in the United States mail, postage prepaid, addressed to the person at the address given by such person to the Association for the purpose of service of notices. Such address may be changed from time to time by notice in writing given by such person to the Association.

9.14 View Impairment. Neither Declarant nor the Association guarantee or represent that any view over and across the Lots, or any open space or Common Area within the Property will be preserved without impairment.

Neither the Declarant, the ACC, and the Association shall have any obligation to relocate, prune, or thin trees or other landscaping. The Association (with respect to any Common Area) will have the right to add trees and other 34 landscaping from time to time, subject to Applicable Law. There shall be no express or implied easements for view purposes or for the passage of light and air.

9.15 Safety and Security. Each Owner and Resident of a Lot, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their respective property located on the Property. The Association may, but shall not be obligated to, maintain or support certain activities within the Property designed to promote or enhance the level of safety or security which each person provides for himself or herself and his or her property. However, neither the Association nor Declarant shall in any way be considered insurers or guarantors of safety or security within the Property, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken.

ARTICLE 10 EASEMENTS

y within the Property, nor shall either be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken.

ARTICLE 10 EASEMENTS 10.01. Right of Ingress and Egress. Declarant, its agents, employees and designees yh and egress over and the right of access to the Common Area to the extent necessary $6 the right to such other temporary uses of the Common Area as may be requi aintenance, including the right to read meters, service or repair lines and equipment, and toda, everything and anything necessary to properly maintain and furnish the Community Systems and the facilities pertihe easement shall run in favor of Declarant. Declarant shall have thé the Community Systems and to provide the services available t within the Property. Neither the Association nor any Owner the Community Systems to any and all Lots axe any interest therein. Any or all of such for as part of the Assessments or directly to Declarant, any affiliate of Declarant, or a third vho receives the services. The Community Systems shall be the property of Declarant unless tr: or any portion of the Community Systems or g 2 tion of the rights, duties or obligations with respect thereto, to the Association or to any Person.fTKe rig installed by Declarant and the serviggSpravided\throygh such Community Systems are exclusive, and no other consent of Declarant. In recognj at interruptions in Community Systems services will occur from time to time, no person or ent shall in any manner be liable, and no user of any Community System shall be entitled to any eBgte, discount or offset in applicable fees, for any interruption in Community Systems service of Whether or not same is caused by reasons within the control of the then-

Page 36

tem shall be entitled to any eBgte, discount or offset in applicable fees, for any interruption in Community Systems service of Whether or not same is caused by reasons within the control of the thenprovider of such services.

10.02 Reserved Easente ¢Of easements, rights-of-way, restrictions and related rights made by Declarant prior bject to this Declaration are incorporated herein by reference and made a part of this 10.03 Utility Easements. Declarant hereby reserves unto itself and Declarant's successors and assigns a perpetual non-exclusive easement over and across the Property for: (i) the installation, operation and maintenance of utilities and associated infrastructure to serve the Property and any other property owned by Declarant; (ii) the installation, operation and maintenance of cable lines and associated infrastructure for sending and receiving data and/or other electronic signals, security and similar services to serve the Property and any other property owned by Declarant; and. (iii) the installation, operation and maintenance of, roadways, gates, walkways, pathways and trails, drainage systems, street lights and signage to serve the Property and any other property owned by Declarant. Declarant will be entitled to unilaterally assign the easements reserved hereunder to any third party who owns, operates or maintains the facilities and Improvements described in (i) through (iii) of this Section 10.03. The exercise of the 35 easement reserved herein will not extend to permitting entry into any residence, nor will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon.

10.04 Subdivision Entry, Fencing, and Landscape Easement. Declarant reserves for itself and the

will it unreasonably interfere with the use of any Lot or residence or Improvement constructed thereon.

10.04 Subdivision Entry, Fencing, and Landscape Easement. Declarant reserves for itself and the Association, an easement over and across the Property for the installation, maintenance, repair or replacement of certain subdivision entry facilities, fencing which serves the Property, and landscaping and irrigation surrounding the subdivision entry facilities and fencing and on the landscaped berm constructed by Declarant along Stinnett Mill Road, when and if Declarant elects to construct and landscape said berm. Declarant will have the right, from time to time, to Record a written notice which identifies the subdivision entry facilities, fencing, and/or landscape area to which the easement reserved hereunder applies. Declarant may designate all or any portion of the subdivigfOg entry facilities and/or fencing as Common Area by Recorded written notice. The exercise of the easements Yes¢ hereunder will not extend to permitting entry to any residence, nor will it unreasonably interfere withgthé Lot or residence or Improvement constructed thereon.

10.05 Landscape and Monument Sign Easement. Declarant hereby reserves for itself af easement over and across the Property for the installation, maintenance, repair or rep designates the easement areas reserved hereunder as Common Area.

hereunder will not extend to permitting entry into any residence, nor wi any Lot or residence or Improvement constructed thereon.

10.06 Landscape Easement. Declarant hereby reserves for j reserved hereunder will not extend to permitting entry into a use of any Lot or residence or Improvement constru q 10.07 Drainage and Maintenance Easement. Decta and maintenance easements as depicted on the pK

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hereunder will not extend to permitting entry into a use of any Lot or residence or Improvement constru q 10.07 Drainage and Maintenance Easement. Decta and maintenance easements as depicted on the pK Bell County, Texas (the "Maintenance "\. 9 Maintenance Area as a common expe ARTICLE 11 ELOPMENT RIGHTS he, bt ainended or modified. Declarant reserves the right, but will not be obligated, to 0 d.@ognmon Areas and to subdivide with respect to any of the Property pursuant to the OX “subjeCt to any limitations imposed on portions of the Property by any applicable Plat.

ég with respect to any portions of the Property. As each area is developed or dedicated, which may, from time to create and/or designate illuminated); sales flags, other sales devices and banners for the purpose of aiding the sale of Lots in the Property; (ii) to maintain Improvements upon Lots as sales, model, management, business and construction offices; and (iii) to maintain and locate construction trailers and construction tools and equipment within the Property. The construction, placement or maintenance of Improvements by Declarant will not be considered a nuisance, and Declarant hereby reserves the right and privilege for itself to conduct the activities enumerated in this Section 11.02 until two (2) years after expiration or termination of the Development Period.

11.03 Addition of Land. Declarant may, at any time and from time to time, add additional lands to the Property.

Upon the filing of a notice of addition of land, such land will be considered part of the Property for purposes of this 36 Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms,

of land, such land will be considered part of the Property for purposes of this 36 Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms, covenants, conditions, restrictions and obligations set forth in this Declaration, and the rights, privileges, duties and liabilities of the persons subject to this Declaration will be the same with respect to such added land as with, respect to the lands originally covered by this Declaration. To add lands to the Property, Declarant will be required only to Record a notice of addition of land containing the following provisions: A reference to this Declaration, which reference will state the document number or volume and initial page number of the Official Public Records of Real Property of Bell County, wherein this Declaration is Recorded; A statement that such land will be considered Property for purposes of this Declaration, and that all of tH&@,terms, covenants, conditions, restrictions and obligations of this Declaration will apply to the added land; and A legal description of the added land.

Property, and remove and exclude from the burden of this Declaration and the jurisdiction.of AsSgéiation any ts conditions, land containing the following provisions: A reference to this Declaration, which reference will state the document ni of the Official Public Records of Real Property of Bell County, A legal description of the withdrawn land.

11.05 Assignment of Declarant's Rights. Wsheip Declarant may, by written instrument, assign, in under this Declaration to any person or€ non-exclusively, by any other person mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any will thereby be deemed to have appointed Declarant such Owner's,

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ration to any person or€ non-exclusively, by any other person mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any will thereby be deemed to have appointed Declarant such Owner's, at’as attorney-in-fact for each Owner, Mortgagee and/or third party, will be deemed, ith an interest and will survive the dissolution, termination, insolvency, bankruptcy, an Owner, Mortgagee and/or third party and will be binding upon the legal brators, executors, successors, heirs and assigns of each such party. The aforesaid, power of each Owner, Mortgagee, and third party claiming a legal or equitable interest in the Common Area, any such agreements, documents, amendments or supplements to the Restrictions which may be required by any institutional or governmental lender, purchaser, insurer or guarantor of mortgage loans (including, for example, the Federal Home Loan Mortgage Corporation) designated by Declarant or by any governmental or quasi-governmental agency having regulatory jurisdiction over the Common Area or by any title insurance company selected by Declarant to insure title to any portion of the Common Area.

11.07. Voluntary Annexation. Declarant may, at any time during the Development Period, in Declarant’s sole and absolute discretion, file a petition with the Village of Salado, Texas (“Salado”), to seek the voluntary annexation 37 of the Property into the city limits of Salado. Each Owner, by accepting a deed to a Lot and each Mortgagee, by accepting the benefits of a Mortgage against a Lot, and any other third party by acceptance of the benefits of a mortgage, deed of trust, mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any other security

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a Mortgage against a Lot, and any other third party by acceptance of the benefits of a mortgage, deed of trust, mechanic's lien contract, mechanic's lien claim, vendor's lien and/or any other security interest against any Lot, will thereby be deemed to have irrevocably consented to such annexation, and Declarant, as attorney-in-fact for such parties pursuant to Section 11.06 hereinabove, may execute any such petitions, certifications, consents, acknowledgments, and any other documents, agreements or instruments necessary to consummate such annexation. fe EXECUTED to be effective on this, the 29 day of Sew € , 2017.

DECLARANT: SALADO MILLS DEVELOPMENT COMPANY, L a Georgia limited liability company By: Larry Rosamond, Authorized Ag THE STATE OF TEXAS § 8 COUNTY OF BELL § This instrument was acknowledged before me on by LARRY ROSAMOND, Authorized Agent of SA limited liability company, on behalf of said cork , day of Que. , 2017, DEVELOPMENT, LLC, a Georgia AFTER RECORDING RETURN TO: SALADO MILLS DEVELOPMENT, LLC ATTN: LARRY ROSAMOND 417 North Main Street, Suite 105 Salado, Texas 76571 38 Bell County Shelley Coston County Clerk NUTINI Se" Instrument Number: 2017-00026716 As Recorded On: June 27, 2017 Recordings Parties: SALADO MILLS DEVELOPMENT GROUP Billable Pages: 38 To SALADO MILLS SUBDIVISION Number of es: 39 Comment: ( Parties listed above are for Clerks reference only ) Recordings 159.00 Total Recording: 159.00 sion herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law.

File Information: Record and Return To: Document Nu ”2017-00026716

ricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law.

File Information: Record and Return To: Document Nu ”2017-00026716 Receipt Number: 306057 SALADO MILLS DEVELOPMENT GROUP Recorded Date/Time: June 27, 2017 04:07:34P 11475 STINNETT MILL ROAD HOUSE 400 User / Station: J Bench - Cash Station 3 SALADO TX 76571 | hereby certify that this instrument was fled on the date and lime stamped hereon and was duly recorded in the Real Property Records in Bell County, Texas Shelley Coston Bell County Clerk Du Lain