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DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS HOMEOWNER’S ASSOCIATION, INC.

STATE OF TEXAS § § KNOW ALL PERSONS BY THESE PRESENTS: COUNTY OF COLLIN § WHITEWING TRAILS HOMEOWNER’S ASSOCIATION, INC., (as time to time, the “Declaration”) is made by, MM Princeton 854, LLC, company (“Declarant”).

development for a single- fasilly home pl “Whitewing Trails” (the “Subdivision”), w described on Exhibit A-1 attached — ( property now and hereafter co architectural review and contr terms of Section 3.8 hereof. 4 te an is the creation of Whitewing Trails Homeowner’s Associa on,Anc., affexas non-profit corporation, or other named non-profit corporation formed to pe be duttres ofthe “Association” hereunder, whose members shall be all owners of real pype i etifis Declaration, to own, operate, and/or maintain various syovements (herein referred to as the “Common Properties”, and ) and to administer and enforce the covenants, conditions, E, Declarant hereby declares that the property described in Exhibit A, perty which is subjected to this Declaration in the future in accordance with jt to this Declaration, which shall run with the title to such property. This Declaration shall be binding upon all Persons having any right, title, or interest in any portion of the Property, their heirs, successors, successors-in-title, and assigns.

ARTICLE I DEFINITIONS The terms used in this Declaration are intended to have their normal, commonly understood definitions, unless otherwise specified. In order to minimize repetition, avoid confusion, and explain key concepts, some terms are capitalized to indicate they have special definitions.

Whenever used in capitalized form, those terms have the following meanings:

repetition, avoid confusion, and explain key concepts, some terms are capitalized to indicate they have special definitions.

Whenever used in capitalized form, those terms have the following meanings: (a) “Architectural Control Committee” and/or “ACC” shall mea architectural review body for the Property, as described in Article II. Durind Control Period (as defined below), the Declarant shall have the sole right to gppein and Nynove members of the ACC or may reserve the rights of the ACC and perform fort through its designee) as the “Reviewer” (as such term is defined im Sectiof 3f ( certain Declarant rights may exist and Members appointed byo Maan nged Members.

(b) “Association” shall mean and refer to Whitewip ik ner’s Association, Inc., a Texas non-profit corporation, or other non-profit cg fy By the Declarant to perform the duties of the “Association” hereun ¢ the right to enforce this Declaration.

(c) “Board of Directors” or ea and refer to the body selected as provided in the Bylaws, being respo rnance and administration of the Association and this Declaration. The imti s€ those individuals set forth in the Certificate of Formation for the Ass@ciatioy : ig the time of Declarant control, the Declarant has the right to appoint and révid irect#fs to the Board, provided that prior to the date which is the earlier of (i) ong e 0) days after seventy-five (75%) of the Lots have been sold to non-Decl ten (10) years from the date on which the Declaration is recorded, at leag directors serving on the Board shall be person(s) elected by a majority vote of Class / eeting of the members at which quorum is present.

Each Director, other t yated by Declarant, shall be a Member and resident, or in

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on the Board shall be person(s) elected by a majority vote of Class / eeting of the members at which quorum is present.

Each Director, other t yated by Declarant, shall be a Member and resident, or in the case of corporapefop kip ownership of a Lot, a duly authorized agent or representative Soa] mean and refer to any person or entity who has acquired a Lot or constructing a residence thereon for later sale to consumers.

s” shall mean and refer to the Bylaws of the Association, approved by the , as may be amended from time to time.

(f) “Common Properties” shall mean all real property (including improvements thereon) now or hereafter owned, leased or controlled by the Association, or to which the Association holds possessory or use rights, for the common use and enjoyment of the Owners (hereinafter defined) including, but not limited to such property which may be: (i) conveyed to the Association in fee simple title, (ii) leased to the Association, (11) landscape or maintenance casements granted or dedicated to the Association by plat or other written instrument, (iv) retention 2 ponds within the Property, and (vi) any other real property or improvement the Association, at the sole discretion of the Board, decides to maintain.

(g) “Community- Wide Standard” shall mean the standard of conduct, maintenance and appearance, including landscaping, generally prevailing throughout the Property or the minimum standards established pursuant to the Design Guidelines, Rules and Board resolutions, whichever is the highest standard. Declarant initially shall establish such standard and the Association, through its Board, shall ensure that the Community-Wide Standard established p¥“be Declaration for the Property shall continue after the termination or expiration of the Class B

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d and the Association, through its Board, shall ensure that the Community-Wide Standard established p¥“be Declaration for the Property shall continue after the termination or expiration of the Class B Community-Wide Standard may contain objective elements, such as specific maintenance requirements, and subjective elements, such as matters subj discretion.

The Community- Wide Standard may or may not be in writing rules and regulations of this Declaration or any policy adopted by tf igclude fines for non-compliance or self-help remedies. The Community-Wi Acts fy evolve as development progresses and as the Property changes. if & Standard shall not fall below the level established for the Property as of the d or expires. The Community-Wide Standard sé aesthetics as well as the use and placement ofe he’ term “Declarant” shall not include any person or entity t that purchases unless such purchaser is specifically assigned, by a separate recorded gil of the Declarant rights under this Declaration as to the conveyed property.

Peclarant Control Period” means that period of time during which Declarant controls the operation and management of the Association, pursuant to Exhibit B of this Declaration.

(k) “Design Guidelines” shall mean and refer to the design standards and guidelines adopted by the Declarant, as may be amended in accordance with Article III, representing the minimum specifications for the construction of all residences, additions to such residences, and other improvements associated with each residence including, without limitation, other structures 3 or improvements located on a residential Lot, and the minimum requirements for landscaping to be installed and maintained on each Lot. The Design Guidelines are an integral part of this

r structures 3 or improvements located on a residential Lot, and the minimum requirements for landscaping to be installed and maintained on each Lot. The Design Guidelines are an integral part of this Declaration and the development plan of the Property and/or Subdivision. The initial Design Guidelines are attached hereto as Exhibit C. All Builders and prospective Owners or those desirous of constructing a residence on a Lot are strongly encouraged to obtain a current copy of the Design Guidelines prior to preparing plans and specifications for submission to the Architectural Control Committee for approval.

(1) “Development Period” means a period commencing on the dat&\of r&gordation of this Declaration in the County real property records, and ending on the date that is We cdWier of (i) records, and during which Declarant has certain rights pursuagt to ; Development Period is for a term of years and does not requiregadDecidear eI éscribed in Exhibit A. Declarant may terminate the Development Period ‘a i ecofding a notice of termination in the County real property records.

(m) “Final Plat” shall mean, initially, the map Jr p ye tty or any portion und any future recorded subdivision maps or plats covering any portion wf the ; onal real property made ont vicinity of a fire station. The location of or construction of improvements within the Fire the Declarant, nor the ACC, or any of its officers, (n) “Fire Station Site” shg described and/or depicted on E Aton of the fire station in the vicinity of the Property and waives any gcia§ion Related Parties with respect to the Fire Station Site.

<n appendix, exhibit, schedule, or certification accompanying a Governing Document is a part of that Governing Document. All Governing Documents are to be recorded in

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respect to the Fire Station Site.

<n appendix, exhibit, schedule, or certification accompanying a Governing Document is a part of that Governing Document. All Governing Documents are to be recorded in every county in which all or a portion of the Property is located. The Governing Documents are Dedicatory Instruments as defined in Texas Property Code Section 202.

(p) “Lot” shall mean and refer to any one (1) of the enumerated plots or tracts of land shown upon a Final Plat, and “Lots” shall mean and refer to more than one (1) of same; provided, however, Common Properties shall in no event be treated as “Lot” for purposes of this Declaration, and are hereby specifically excluded from the term “Lot” as used hereunder.

(q) “Member” shall mean and refer to a member of the Association, as described in Article VIII.

(r) “Multi-Family Site” shall mean and refer to that certain 20.106+NqcreWeact of land described and/or depicted on Exhibit A-2 attached hereto.

or creation of any adverse conditions thereon. Each O acknowledges it has been advised of the locati Pthe Outparcel Site by the owner thereof or creation of ach Owner by acceptance of title to a Lot acknowledges it 6f a retail or commercial development in the vicinity of the laims against the Association Related Parties with respect to the dnd ” shall mean and refer to each and every person or business entity (whether one or Ging Declarant (so long as applicable), that is a record owner of a fee or undivided erest in any Lot; provided, however, that (i) the term “Owner” or “Owners” shall not include any person or entity who holds a bona fide lien or interest in a Lot as security merely for the performance of an obligation (specifically including, but not limited to, any mortgagee or

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l not include any person or entity who holds a bona fide lien or interest in a Lot as security merely for the performance of an obligation (specifically including, but not limited to, any mortgagee or trustee under a mortgage or deed of trust) unless and until such mortgagee, beneficiary or trustee has acquired title to such Lot pursuant to foreclosure or any proceeding in lieu thereof; and (ii) with respect to any matter requiring the vote, consent, approval or other action of an Owner, each Lot shall be entitled to only one (1) vote except as provided for in Section 8.2 and Section 15.6 herein.

(u) “Phase” shall mean and refer to each separately developed residential area or addition as set forth and more fully described on a Final Plat depicting real property that has been subjected to the Declaration.

(v) “Property” shall mean and refer to the real property described on Exhibit A, any improvements now or hereafter situated thereon, and any and all additional real property (and the improvements thereon) which Declarant hereafter subjects to this Declaration, ig4¥gordance with Article XIV hereof. The Property shall not include the Fire Station Site, the Mnily Site or the Outparcel Site; however, the Multi-Family Site and any other tract of land de’ the Property by Declarant pursuant to any Supplemental Declaration hereafter i part of the “Restricted Outparcels” shall each be subject to the g requirements of Article II hereof, as more specifically set fort and obligations on the land described.

CONSTRUCTION OF Section 2.1 Residential Use.

dential purposes and home office only and all be erected, altered, placed or permitted to ele-family residence per Lot, which residence ty of Princeton ordinance or this Declaration, and a

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ential Use.

dential purposes and home office only and all be erected, altered, placed or permitted to ele-family residence per Lot, which residence ty of Princeton ordinance or this Declaration, and a ding or structure to be placed or constructed on a Lot itectural Control Committee under Article III. Other erwise provided in this Section2.2, (i) each single family residence may be pétsons living and cooking together as a single housekeeping unit, together with any hous@e ployees, and (ii) except for families consisting of persons related by blood, adoption, or marriage (a “Family Unit”), no more than two persons per bedroom may occupy the same residence on a regular and consistent basis.

Section 2.2.1 Leasing. No more than ten percent (10%) of the residences within the Subdivision may be leased to a non-Owner occupant at any given time without the express written consent and approval of the Board, which may be withheld in the Board’s sole and absolute discretion. The Board may grant a variance of this use restriction on a case by case basis at the 6 sole and absolute discretion of the Board. An Owner must complete an application and deliver a the application and a copy of any proposed lease for approval by the Board as a condition to the effectiveness of such lease, and any proposed lease must include a requirement that the tenant and any occupants of a residence by such lease fully comply with the terms of this Declaration.

Owners who rent or lease their residence are required to execute a written lease agreement, signed by the tenant and a copy provided to the Association prior to the tenant’s possession of the residence. Notwithstanding the foregoing, during the Declarant Control Period, Section may

greement, signed by the tenant and a copy provided to the Association prior to the tenant’s possession of the residence. Notwithstanding the foregoing, during the Declarant Control Period, Section may not be enforced without the express written consent of Declarant. Any lease allowed B during the Declarant Control Period shall not be counted as part of the ten percent (18 8 hereunder as long as Owner can provide a valid signed lease with a Start date pasar tthe Sgd of Lease Terms”): a. Term of Lease. Initial term of the lease shall not be'leés tha : b. Entire Residence. The property leased includes the No shortterm leasing, bed and breakfast, vacation or Wf is allowed.

c. Single Family. Lease is restricte shall provide to the Associatig information for the tenants.

d. Abide by Rules. The O e. Assignment. No agsigfimént or gub Redsing is allowed.

f. Renter’s Insuranke I q. Tpnant must carry renter’s insurance.

Oy Owner Respaysibjlity’ Should the tenant violate a rule, regulation, or policy, and Notice of Fine is sent, the Owner shall be responsible for compliance and ensuring the violation is immediately abated.

wion for all fines or any monetary expense the Association may incur forcement and abatement of a violation. Fine(s) will be levied against the Whether or not it is so stated in a lease, every lease is subject to this Declaration and any rules, regulations, design guidelines or other dedicatory instruments promulgated hereunder. An Owner is responsible for providing its tenant with copies of this Declaration, and any and all rules, regulations, design guidelines or other dedicatory instruments promulgated hereunder, and notifying its tenant of changes thereto. Failure by the tenant or his invitees to comply with this

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all rules, regulations, design guidelines or other dedicatory instruments promulgated hereunder, and notifying its tenant of changes thereto. Failure by the tenant or his invitees to comply with this Declaration and any rules, regulations, design guidelines or other dedicatory instruments 7 promulgated hereunder is deemed to be a default under the lease. When the Association notifies an Owner of its tenant’s violation, the Owner will promptly obtain his tenant’s compliance or exercise its rights as a landlord for tenant’s breach of lease. If the tenant’s violation continues or is repeated, and if the Owner is unable, unwilling, or unavailable to obtain his tenant’s compliance, then the Association has the power and right (but is not obligated) to pursue the remedies of a landlord under the lease or state law for the default, including eviction of the tenant. THE OWNER OF A LEASED LOT IS LIABLE TO THE ASSOCIATION FOR ANY EXPENSES INCURRED BY THE ASSOCIATION IN CONNECTION WITH ENFORCEXP@NT OF THIS DECLARATION, AND ANY AND ALL RULES, REGULATIONS, DESI OR OTHER DEDICATORY INSTRUMENTS PROMULGATED HEREUNDS HIS TENANT. The Board may reject any proposed lease that would result ip percent (20%) of the residences in the Subdivision being leased to non-Owné fail to include the Required Lease Terms. Notwithstanding the contrary contained herein, during the Declarant Control Period, eis shall be subject to the leasing restriction contained in this Section percent (20%) cap on leased residences in the Subdivisionf Owner for any damages, including lost rents, suff Cay by 7 dedicatory instruments promulgated hereung Q Section 2.3. Garage Require forth in the Design Guidelines.

structure and may not be used gé

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s, suff Cay by 7 dedicatory instruments promulgated hereung Q Section 2.3. Garage Require forth in the Design Guidelines.

structure and may not be used gé m in design and materials with the main % any time or for the purpose of conducting shall be allowed upon written consent of the ith a wood overlay, and (iii) wood garage doors.

Consent of the Reviewer. No stain or color variations or patterned or sidewalks shall be allowed without the express written consent of the Uses Specifically Prohibited.

(a) No temporary or permanent structure including, but not limited to, children’s play structures, play houses, and play sets, dog houses, greenhouses, sports equipment, residences, shop, storage building, gazebos, pergolas, cabanas, covered patios, trailer or mobile home, pools, spas, and other water features, buildings for storage of lawn maintenance equipment, or any kind of improvement of a temporary or permanent character shall be permitted on any Lot without the express written consent of the Reviewer, except that dog houses and small, low-lyin g green houses 8 that are not visible over the fence are allowed and do not require the consent of the Reviewer to install. As a Community Wide Standard, all structures, regardless of type, shall be subject to, but not limited to, placement, height, styles, types, and use restrictions and setbacks which may vary or be greater than the requirement of any City restrictions or rules. Owners are hereby advised the Association’s restrictions may have higher and stricter standards for any temporary or permanent structures, regardless of type or use. At all times the higher standard shall prevail and be upheld unless a written variance by Declarant or the Architectural Review Committee is

mporary or permanent structures, regardless of type or use. At all times the higher standard shall prevail and be upheld unless a written variance by Declarant or the Architectural Review Committee is granted. Homeowners Association. Variances may be temporary or permanenf@qd the written variance, when issued, shall clearly identify the type of variance granted. As Q Seal rule, no structure whether temporary or permanent shall be allowed if such structure would } the front of the residence or the street. As a standard throughout the commun; &, that structure is not visible from the front of the residence or street. sidenges On g safay be subject to greater restrictions than other Lots. All structures wi aresubject to the discretion of the Reviewer.

(b) Portable or permanent basketball goals may o consent of the Reviewer. The allowance of and placer, basketball goal is at the sole discretion of the Arch Review Committee may require the storage o ry or permanent ttee. The Architectural hen not in use and for down when not in use. No portable bagketh May De played or kept in the street or ina manner that blocks a sidewalk and mag in th Ass area located between the front building line and street. Ed area is subject to removal by the Association at the sole expense and liab of the goal. Costs associated with the removal of any goal shall be billed baeK te e¥$ account for full re1mbursement to the Association. Goals 1 must be kepéin gootyrepayr afl! times and may not use unsightly weights No improvements, installation, construction, g¢, or other change of any kind or type to the exterior of a residence “the express written consent of the Architectural Review Committee.

ritten consent shall constitute a violation subject to immediate fines after

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ange of any kind or type to the exterior of a residence “the express written consent of the Architectural Review Committee.

ritten consent shall constitute a violation subject to immediate fines after fits one (1) written notice to an Owner in violation that outlines the amount fines shal ess than $100.00 and shall not exceed $1,000.00 per violation occurrence.

(d) Builders or contractors may have temporary improvements (such as a sales office and/or construction trailer) on a given Lot during construction of the residence on that Lot or ona different Lot as agreed to between the Builder or contractor and Declarant and/or as otherwise set out in the Design Guidelines. Excluding Builders and Contractors, no building material of any kind or character shall be placed or stored upon the Property until the Owner thereof is ready to commence construction of improvements, and then such material shall be placed on the driveway 9 or if landscaping has not yet been installed, within the property lines of the Lot upon which the improvements are to be erected.

(e) Except as otherwise provided in this Section, no vehicle may be parked or left upon any portion of a Lot except in a garage or on a driveway. Due to the often-controversial nature of on-street parking, the Board of Directors or the Reviewer shall have the sole discretion to review and determine potential non-compliance on a case by case basis. Parking in front of mail boxes, blocking driveways, intersections, or other publicly accessed area prohibited.

Notwithstanding the above, short-term and visitor parking of a vehicle may be \park& an enclosed garage temporarily and irregularly to accommodate such use. Th® , in its discretion, may enact additional rules governing such temporary, irregular usg-@fin we abgence

ehicle may be \park& an enclosed garage temporarily and irregularly to accommodate such use. Th® , in its discretion, may enact additional rules governing such temporary, irregular usg-@fin we abgence of specific rules, shall have discretion in determining what constitutes pernalss] such circumstances. This Section shall not apply to parking, forgu B of ey by Veliicle repairs, construction, service, and delivery vehicles for periodsoy2 g eervices or make a delivery and shall exclude first responders and Owners Phi ged for law enforcement, fire officials, medical or ambulance workers, or such elated volticles which shall be reviewed and considered at the sole discretion of the BOara As used in this Section, the term “vehicles” i boats, trailers, motorcycles, campers, vans, 2 with or without trailers may park within th immediate Notice of Fine Warning after provided below, the following vehicle may be parked only in an enclosed garg for the purpose of cleaning, loading, or wir hours. If driveways may be accessed ercial lettering or logos) are prohibited without the express eviewer or Board of Directors. Unlicensed or inoperable vehicles ages and may not be visible at any time. “Sports utility vehicles” Aehicles are commonly referred to, as determined in the Board’s trucks without commercial writing or logos shall be treated as automobiles aes"may be kept for a period of not more than twenty-four hours for the purpose of cleaning or loading and unloading only. No boat, trailer, cargo trailer, water sport vehicles, or any other vehicle or utility or sport vehicle or item, regardless of type, may be parked or stored on the street, in the driveway, or in any side or rear yard.

(g) Declarant and Builders are excluded from vehicle and parking rules; Notwithstanding,

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item, regardless of type, may be parked or stored on the street, in the driveway, or in any side or rear yard.

(g) Declarant and Builders are excluded from vehicle and parking rules; Notwithstanding, ordinary care shall be taken to ensure vehicles do not damage streets, curbs, sidewalks, Common Properties, or adjoining Lots or residences, and areas of heavy traffic for construction related 10 equipment and vehicles is kept clean and do not block the flow of traffic for neighboring residences and streets, driveways, mailboxes, or any area in which Owners require and have right-of-way rights and privileges. No Owner shall ever interfere with a Builder or Declarant, and may not interfere with the actions of the Declarant or any development related activities. Violations of this type shall carry the highest possible fine and may result in further actions by the Declarant and/or the Association. Violation of any rule, regulation, or policy will result in a violation notice and may result in a fine for non-compliance with an Association rule, regulation, or policy.

Violations may be issued based on curable or non-curable non-compliance with or policy. Notice structure and fine amounts and increments may vary for non-cl available to it for the towing of any unauthorized vehicle.

be at the sole expense of the Owner of the vehicle and responsibility for the vehicle as well as any personal items wit the vehicle is towed.

tendencies or attacks a person pr £ order from the Board; pravidedhi ghall the Board or Association be required to remove any pet from the Subgivisiom crs gr€ hereby placed on notice that fines as well as other possible enforcemep but not limited to, prompt removal of the animal, shall be

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ssociation be required to remove any pet from the Subgivisiom crs gr€ hereby placed on notice that fines as well as other possible enforcemep but not limited to, prompt removal of the animal, shall be enforced g@awst 4 ing such an animal. If an Owner has failed to remove its pet from the S any order of removal issued by the Board within three (3) days after such order is Gelive (an Owner, such Owner shall be subject to fines hereunder or as may bg poatd/and the Board may proceed with efforts to immediately remove the p the subject fo the order from the Subdivision. Notwithstanding anything contained heret ryf the Board in its sole discretion and without incurring any further duty or obligattk or occupants within the Property, may decide to take no action and refer complainiftgypames to the appropriate municipal or governmental authorities for handling and final disposition. Owners are hereby put on notice that enforcing complaints of barking or howling dogs or noise from animals are difficult violations to enforce. The Association will send notices and follow through up to and including the fine process so long as the Board of Directors deems it appropriate and approves of such action; Notwithstanding, Owners should not place unreasonable expectations on the Board or its managing agent in attempting to enforce this rule. Owners should be mindful of their neighbors and be prepared to keep their pets under control at all times when outside the confines of the residence or when walking your pet within the Subdivision.

1] IF ANY ANIMAL OR PET IS A NUISANCE IN THE SUBDIVISION, OWNERS ARE ENCOURAGED TO CONTACT THEIR LOCAL ANIMAL CONTROL AUTHORITY FOR ASSISTANCE. The Association shall have no liability or obligation to ensure removal of a pet

IS A NUISANCE IN THE SUBDIVISION, OWNERS ARE ENCOURAGED TO CONTACT THEIR LOCAL ANIMAL CONTROL AUTHORITY FOR ASSISTANCE. The Association shall have no liability or obligation to ensure removal of a pet from the Subdivision that is a nuisance and cannot be held liable or responsible if any enforcement actions taken by the Association under this Section2.5(d) are unsuccessful. EACH OWNER BY ACCEPTANCE OF TITLE TO ITS LOT OR OCCUPANCY OF A RESIDENCE THEREON HEREBY RELEASES AND WAIVES THE ASSOCIATION, DECLARANT,ATHE BOARD AND/OR ITS MANAGING AGENT AND THEIR RESPECTIVE MEMBER ,' IPLOYVEES, DESIGNEES, ADMINISTRATORS, INSPECTORS, CONTRACTORS, AND A ‘ AGREES TO INDEMNIFY AND DEFEND SAME AND HOLD THEM HARMLESS‘ AGAINST ANY CLAIMS, LIABILITIES, LOSS, DAMAGE, COSTS A INCLUDING BUT NOT LIMITED TO ATTORNEYS’ FEES, IN CON ARISING OUT OF ANY ACTIONS OR ATTACK BY VIR, PH RESIDING ON AN OWNER’S LOT WITHIN THE SUBDIVI THAT ARE DETERMINED TO BE AGGRESSIVE OR VICIOUS ANY APPLICABLE GOVERNMENTAL AUTHORITY CNCD WITHOUT LIMITATION, PIT BULLS OR ROTTWEILERS}4 WITHIN THE SUBDIVISION AND ARE DEEMED TO BRE AAMASA REMOVAL PROVISIONS SET FORTH HEREINA e€th4t attacks another person PEGIFICALLY, Y PROHIBITED or animal within the Subdivision is subject to a © (each day of violation being deemed to be an occurrence), whether er’s pet ipflicted harm on a person.

Pets shall be kept on a leash or otherwise &on @ area whenever outside the residence. Pets shall be registered, lienPed i kK as required by law and must be properly tagged for identification. It ib : pility to keep the front of their Lot clean and free of pet debris and to pick dispose of their pet’s waste wherever deposited. Notwithstanding anything Sed hereto the contrary, no more than three (3) household pets will be permitted g

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ot clean and free of pet debris and to pick dispose of their pet’s waste wherever deposited. Notwithstanding anything Sed hereto the contrary, no more than three (3) household pets will be permitted g cated animal, no wild or reptilian animals of sed in an Owner’s residence or on an Owner’s Lot to determine what animal outside of domesticated the Property shall be used as a dumping ground for rubbish Msightly materials of any kind, including, without limitation Squipynenty disassembled or inoperative cars, other vehicles or discarded cOqrect@r remove any fem or items violating this section and the cost thereof shall be billed back to the OWwer andé shall be added to the Owner’s account and payable to the Association immedtg ; entation of a statement of amount due by e-mail and/or U.S. mail. Trash, garbage OMgther swAste shall be kept in sanitary containers at all times and shall be kept out of public view or screened from view of the street and any adjacent Lot or Common Properties. The construction or installation of concrete pads for trash or recycle cans requires prior written consent of the Reviewer. All such pads shall be screened with wood fencing or live screening subject to the approval of the Architectural Review Committee. Oversized objects that cannot fit into available trash containers should be kept out of sight until day of trash pickup. Items such as furniture and green waste may not be placed outside for pickup more than twenty-four hours before the scheduled pickup service. Items not picked up on time need to be removed by the Owner and or a Site f broken or 12 placed out of sight or hauled off. All incinerators or other equipment for the storage or other

pickup service. Items not picked up on time need to be removed by the Owner and or a Site f broken or 12 placed out of sight or hauled off. All incinerators or other equipment for the storage or other disposal of such material shall be kept in clean and sanitary condition. Materials incident to construction of improvements may be stored on Lots during construction so long as construction progresses without undue delay and waste storage bins are utilized.

The Declarant or Board of Directors may, after notice is served either by mail, email, or by posting on the door of the residence, initiate self-help actions to abs Owners or Builders fail to abate the violation in a sufficient and/or timely costs of such self-help actions shall be billed back to the Owner’s account 2 due and payable to the Association upon receipt of notice an Association or its managing agent.

(k) No air-conditioning apparatus shall be install€d residence. No air-conditioning apparatus shall be attached to any that is visible to the public or neighboring unit.

(1) The erection, construction, placg allati any television, radio or other electronic tower, serial, antenna, satellwan Vi Ay fype for the reception or transmission of radio or television broadcastfsigfig er Magans of€ommunication upon a Lot or upon any improvement thereon is probtit ad. ex prohibition shall not apply to those antennae specifically covered by 47 G . ‘ ection 1.4000 (or any successor provision) promulgated under the Teledy icaty 996, as amended from time to time.

The Board shall be empowered to ado S ang the types of antennae that are permissible creased, an antenna permissible pursuant to the May only be installed ina side or rear yard location, not

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to time.

The Board shall be empowered to ado S ang the types of antennae that are permissible creased, an antenna permissible pursuant to the May only be installed ina side or rear yard location, not quiet, inoffeasiw€ activities such as a small home office, tutoring or giving lessons such as art or music, so long as such activities are consistent with the residential character of the Property, do not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of others within the Property, as determined in the Board’s discretion, and do not materially increase the number of cars parked on the street.

13 (n) No fence, wall, hedge or shrub planting which obstructs sight lines at elevations between three feet (3') and six feet (6') above the roadway shall be placed or permitted to remain on any corner Lot within the triangular area formed by the street right-of-way lines and a line connecting them at points a minimum of ten feet (10') from the intersection of the street right-ofway lines, or, in the case of a rounded property corner, from the intersection of the street right-ofway lines as extended. The same sight-line limitations shall apply on any Lot within ten (10) feet from the intersection of a street right-of-way line with the edge of a private driveway or alley pavement. No tree shall be permitted to remain within such distance of such inte i the foliage line is maintained at least eight feet (8°) or a sufficient height to preven uction of such sight lines.

(o) No building previously constructed elsewhere shall be move the express written consent of the Reviewer, it being the intentiopyhat o placed and erected thereon.

displayed; (11) one (1) professional security servi (1) sign of not more than five square feet adverpfs

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xpress written consent of the Reviewer, it being the intentiopyhat o placed and erected thereon.

displayed; (11) one (1) professional security servi (1) sign of not more than five square feet adverpfs that the Lot actually is for rent or sale; or (j during the construction and sales period, g re that does not comply with the or trespass or otherwise in connection is prohibited. Clothes lines are prohibited.

to the public are prohibited.

section 2.64 Minimum Floor Area, Lot Dimensions, Lot Area, Maximum Height RegulationSsSe*Back and Yard Restrictions.

The total air-conditioned living area of the main residential structure constructed on each Lot, as measured to the outside of exterior walls but exclusive of open porches, garages, patios and detached accessory buildings, shall be in accordance with the City of Princeton Planned Development Ordinance 2009-07-28, as modified and amended by the City of Princeton Ordinance No. 2019-06-24-01, but in no event shall be less than as follows: 14 Development of the Lots, including minimum area o setback, maximum building height, and maximum Lot coverggt City of Princeton Planned Development Ordinance 2009-0 (a) for 50’ Lots a maximum of 25% of all residences shall be a minimum of 1,300 to 1,399 square feet. All others shall be a minimum of 1,400 square feet or greater.

Builders may NOT assume use of the lower square footage for their plans without the express written consent of the Declarant or Reviewer.

(b) for 60° Lots a minimum of 1,500 square feet or greater is required.

(c) for 75’ Lots a minimum of 1,800 square feet or greater is required.

(d) for 80’ Lots, a minimum of 2,000 square feet or greater is required.

Pages 15–16

a minimum of 1,500 square feet or greater is required.

(c) for 75’ Lots a minimum of 1,800 square feet or greater is required.

(d) for 80’ Lots, a minimum of 2,000 square feet or greater is required.

(e) for Zero Lot Line Lots of approximately 35’ in Lot width a minj feet are required.

6t width, rear yard City of Princeton Ordinance No. 2019-06-24-0 we in nq on the interior | on the interior 50° Lots 60° Lots | Zero Lot Line Minimum Lot | 5,500 SF 6,600 20,000 SF 3,200 SF Area in Square Feet | Minimum Lot | 50 Feet 80 Feet 35 Feet Width for Lots Not Fronting on a Cul-de-Sac or Width for | Fronting | Cul-d Pt 100 Feet 100 Feet 150 Feet | 75 Feet Mini 20 Feet 25 Feet 25 Feet 15 Feet Yard ; _ Yards) except 5 feet | except 5 feet i * 10-foot minimum separation, but a ten-foot side yard setback is not required on each interior side yard.

15 side yard on a side yard ona Yard Setback Maximum Building Height Maximum Lot Coverage All corner side yard setbacks may include separately platted deemed to be on the same lot as the residential use for purposes_of 35 feet and 2 stories 35 feet and 2 stories 60% 55% | | 35 feet and 2?

stories 35 feet and 2?

stories corner Lot corner lot Minimum Side | 15 feet 15 Feet 15 Feet 15 Feet 15 Feet Yard Setback (Corner Side Minimum Rear | 10 Feet 10 Feet 15 Feet 20 Feet 10 Feet ad. Eaves, covered porches, and roof extend into the rear yard a distance not to exceed four feet (4’). The residential lots served by alleyg residential home or zero lot ling r

Pages 16–17

5 Feet 20 Feet 10 Feet ad. Eaves, covered porches, and roof extend into the rear yard a distance not to exceed four feet (4’). The residential lots served by alleyg residential home or zero lot ling r vets, étc., or up righting a leaning or fallen panel is not required. Pences and walls ar&prohibitedin diainape easements. Refer to Section 1.2 of Exhibit C, Design Guidelines erial types, style, height, and other restrictions for fencing. No chain link, vinyl fences, or barbed wire fences are permitted except on the Common Properties or any school property. No fence or wall shall be permitted to extend nearer to any street than the front of any residence; Notwithstanding, the Architectural Review Committee may require the fence to be set back from the front of the residence up to fifteen feet (15’) when in the sole discretion of the Reviewer such a setback is warranted. Generally, all side yard fencing on corner Lots shall run parallel to the curb and may be placed no nearer than five feet (5') to the side Lot line and shall not extend beyond a point of five feet (5') from the front of the residence on any side in order to avoid 16 impeding any line of sight or other annoyances or nuisances to adjoining neighbors. Fences or walls erected by Declarant shall become the property of the Owner of the Lot on which the same are erected and as such shall be maintained and repaired by such Owner except as is provided in Article IV and Article [X. Wall easements shall be kept clear and may not contain any planting, structure, or other items. Occasionally, an Owner may be allowed to place items within an easement; Notwithstanding, certain additional permissions and requirements shall apply for any such request.

Pages 17–18

, structure, or other items. Occasionally, an Owner may be allowed to place items within an easement; Notwithstanding, certain additional permissions and requirements shall apply for any such request.

No portion of any fence shall extend more than six feet (6') in height withg written consent of the Reviewer except that step ups and step downs to adjust for allowed. No fencing of the front yard is allowed. The Reviewer may, at thei express considered on a case by case basis. The Reviewer, at its sole d to obtain and present a permit from the City prior to initiating a approval.

are allowed. Decisions of the Reviewer may be based solely .

All fences shall be maintained in good condition and in this Declaration and the City of Princeton code following: (i) Fences or any part thereofgha vertical alignment.

(11) Damaged, removed, or misg and all graffiti.

(iv) Any and a of fences and shall éetation of any kind and/or weeds, shall be kept clear a to grow into, under, or over a fence. The Association will ydless of type and the cost of removal shall be billed back to 17 (vi) It shall be a violation of the City of Princeton and of this Declaration to fail to maintain a fence in good condition by failing to meet any of the requirements of the City of Princeton and this Declaration. Any damage, deterioration, or unaligned condition, graffiti or vegetation or any other disrepair shall be violated by the Association and the Association shall report all such disrepair to the City of Princeton.

THE ARCHITECTURAL REVIEW COMMITTEE MAY REQUIRE A BUILDER OR OWNER TO PROOF THE LOT OWNER HAS OBTAINED NECESSARY CLEARANCE COMMENCING CONSTRUCTION. FAILURE TO PROVIDE THE REQUESTED DOC SUBMITTED. THE ACC IS NOT REQUIRED TO APPROVE WORK REGARDLESS OF WHETHER A CONSENT IS OBTAINED OR NO ty A

Pages 18–19

HAS OBTAINED NECESSARY CLEARANCE COMMENCING CONSTRUCTION. FAILURE TO PROVIDE THE REQUESTED DOC SUBMITTED. THE ACC IS NOT REQUIRED TO APPROVE WORK REGARDLESS OF WHETHER A CONSENT IS OBTAINED OR NO ty A TO REQUIRE A GREATER SETBACK FROM ANY FENCE FO STRUCTURE, TEMPORARY OR PERMANENT.

Section 2.8 Building Materials.

be performed by the Association and the costs and expenses g connection therewith shall be charged on a pro rata basis (based on units within such cluster mailbox) as a special individual assessment pilbox units within the cluster mailbox that has been maintained, repaired Section 2.10 Landscaping.

Each Builder of a residence upon each Lot shall, upon or before the first occupancy of a house, sod grass in the front and side yards, plant the minimum size and number of trees and minimum size and number of shrubs in the front yard against the foundation of the house as required by cither the Design Guidelines. Landscape and irrigation requirements for all residential uses shall conform to City of Princeton Development Standards and Use Regulations and as set 18 forth in Section 1.1 of the Design Guidelines and as may be amended from time to time.

Thereafter, each Owner of a Lot shall have the responsibility to properly maintain such trees and landscaping and, if necessary, shall replace such trees or landscaping in accordance with the Design Guidelines. The Declarant and/or the Association shall have the right but not the obligation, to be exercised at its sole option, to remove and replace dead trees and landscaping and charge the costs thereof to the Owner’s account as a special individual assessment under Section 10.7 below.

All landscaping installed by the Declarant within or that are part of the Common Properties shall

Pages 19–20

the costs thereof to the Owner’s account as a special individual assessment under Section 10.7 below.

All landscaping installed by the Declarant within or that are part of the Common Properties shall become the responsibility of the Association to maintain immediately after ig maintenance or replacement by the Declarant after initial installation shall be at of the Declarant.

Section 2.11 Design Guidelines.

In addition to any requirements set forth in this Declratichop Development Ordinance 2009-07-28 (as modified and amendeg Ordinance No. 2019-06-24-01), all Owners are required to comply exas, Planned Development Ordinance 2009-07-28, as modified And ed by ity of Princeton Ordinance No.

kg Property. No toys, weapons or firearms, including, without permitted anywhergrg inB-shots or other item that is designed to cause harm to any limitation# alxriffes, BR to3 1,000 per occurrence after the first notification (which may be given to the extent permitted under applicable law). Fireworks are strictly 0 the violation and specifying the date of approximate time of such violation which is received by the Association shall be sufficient evidence of such violation.

Section 2.14 Use of Association and Subdivision Name. The use of the name of the Association or the Subdivision, or any variation thereof, in any capacity without the express written consent of the Declarant during the Declarant Control Period, and thereafter the Board, is strictly prohibited. Additionally, the use of any logo adopted by the Association or the Subdivision, or use of any photographs of the entryway signage or other Subdivision signs or monuments or 19 Common Properties without the express written consent of Declarant during the Declarant Control

ivision, or use of any photographs of the entryway signage or other Subdivision signs or monuments or 19 Common Properties without the express written consent of Declarant during the Declarant Control Period, and thereafter the Board, is strictly prohibited.

Section 2.15 Noise and Odor. An Owner or occupant of a residence must exercise reasonable care to avoid making or permitting to be made loud, disturbing, or objectionable noises or noxious odors that are likely to disturb or annoy occupants of neighboring residences. The rules and regulations promulgated by the Association may limit, discourage, or prohibit noiseproducing activities and items in the residences and on the Common PropgfSes within the Subdivision. The Association shall provide an Owner with notice of its viokg of this use restriction, and if an Owner receives more than one notice in any 12-month period of the second notice from the Association, the Owner shall be subject tqpsé upder.

Notwithstanding anything contained herein to the contrary, the Board in j and without incurring any further duty or obligation to Owners and ocgypants ¢f résidt ith the Property, may decide to take no action and refer complaining pie e UPL icipal or governmental authorities for handling and final disposition: PR ODOR BECOMES A NUISANCE IN THE SUBDIVISION, OWNER O a PANTS OF RESIDENCES ARE ENCOURAGED TO CONTACT THEI A ORCEMENT OFFICIALS FOR ASSISTANCE. The Association shall hg a Y be held liable or responsible if any enforceme 2.15 are unsuccessful.

EACH OWNER AND OCCUPANT OF 4 LOT HEREBY RELEASES AND Wé AND/OR ITS MANAGING AGENT PECTIVE MEMBERS, EMPLOYEES, DESIGNEES, ADMINISTRATORS, RyYS TRACTORS, AND AGENTS, AND

Page 21

enforceme 2.15 are unsuccessful.

EACH OWNER AND OCCUPANT OF 4 LOT HEREBY RELEASES AND Wé AND/OR ITS MANAGING AGENT PECTIVE MEMBERS, EMPLOYEES, DESIGNEES, ADMINISTRATORS, RyYS TRACTORS, AND AGENTS, AND AGREES TO INDEMNIFY AND DE é ND HOLD THEM HARMLESS FROM AND AGAINST ANY CLAIMS, 8, DAMAGE, COSTS AND EXPENSES, INCLUDING BUT NOT LI EYS’ FEES, IN CONNECTION WITH OR CEPTANCE OF TITLE TO ITS N, DECLARANT, THE BOARD Inmanned Aircraft. Any Owner operating or using a drone or Property and related airspace must register such drone or unmanned segistpatiog number on the drone or unmanned aircraft for identification purposes. BY f TITLE TO ANY PORTION OF THE PROPERTY, EACH OWNER S THAT USE OF A DRONE OR UNMANNED AIRCRAFT TO TAKE IMAGES OF PRIVATE PROPERTY OR PERSONS WITHOUT CONSENT MAY BE A VIOLATION OF TEXAS LAW AND CLASS C MISDEMEANOR SUBJECT TO LEGAL ACTION AND FINES UP TO $10,000. IT IS YOUR RESPONSIBILITY TO KNOW AND COMPLY WITH ALL LAWS APPLICABLE TO YOUR DRONE AND/OR UNMANNED AIRCRAFT USE.

20 ARTICLE HI ARCHITECTURAL CONTROL Section 3.1 Review Authority.

(a) General. Declarant and the Association will, in all likelihood engage the services of third-party professionals including architects, engineers, or other persons to perform and administer the submission, review and inspection process which may be requip&M.or necessary under this Article. Declarant reserves the right to implement and enforce addithg application, permitting, review, testing and inspection requirements and procedures not co herein relating to national or uniform codes pertaining to building, electrical, plumbjag aspect of construction or development as deemed necessary by Declarant.

(b) Declarant. Declarant shall have exclusive auth upon all applications for architectural and other improvements wit

, plumbjag aspect of construction or development as deemed necessary by Declarant.

(b) Declarant. Declarant shall have exclusive auth upon all applications for architectural and other improvements wit persons or entities to act on its behalf with respec ing within the purview of this Article II] which persons need not be € 5. Lg reviewing and acting upon any request for approval, Declarant or its dg 3 elfin Declafant’s interest and owe no duty to any other person. Declarant is pe d‘meetings or keep minutes relating to its review under this Article.

Declarant may from time to tirgt all or any portion of its rights under this Article to any other person, ent , including the Architectural Control Committee. Any such delegatig g. shall specify the delegated responsibilities, and shall be subject to (1) Declata t tarevoke such delegation at any time and reassume its prior jurisdiction, and (11) Dgcla' ght to veto any decision which it determines, in its discretion, to be inappropriate dy i Upon Declarant’s delegation or upon Neclarant’s rights under this Article, the Association, acting through giction over architectural matters. The ACC shall consist of at least and after Declarant’s rights to administer, review and act upon application 5 her improvements within the Property has expired or terminated, the ACC shall bAClass"A mbers of the Association or representatives of Members, and may, but need not, includeareffitects, engineers, or similar professionals, who may be compensated in such manner and amount, if any, as the Board may establish. The ACC members shall be appointed and serve at the sole discretion of the Board and shall be designated, shall serve, and may be removed and replaced in the Board’s discretion. An ACC member may be removed and replaced

Page 22

ll be appointed and serve at the sole discretion of the Board and shall be designated, shall serve, and may be removed and replaced in the Board’s discretion. An ACC member may be removed and replaced at any time and from time upon written notice to the ACC and the member being removed.

For so long as Declarant owns any portion of the Property (and unless the Declarant notifies the ACC in writing to the contrary), the ACC shall notify Declarant in writing, no less than thirteen 21 (13) business days prior to communicating any action (i.e., approval, partial approval, or disapproval) it intends to take under this Article. A copy of the application and any additional information that Declarant may require shall accompany the notice. During such time, Declarant shall have the right, in its sole and absolute discretion, to veto any ACC action; provided, Declarant’s right to veto must be exercised within ten (10) business days after it receives notice of the ACC’s proposed action. The party submitting the plans for approval shall not be notified of the ACC’s proposed action until after Declarant’s right to veto has expired.

The Board may create and appoint subcommittees of the ACC. Subcom established to preside over particular areas of review (e.g., landscape plans) and sk by procedures the Board or the ACC may establish. Any subcommittee’s g review and approval by Declarant, for as long as Declarant may re~jew th the ACC. Notwithstanding the above, neither the ACC nor Deck all actions of any subcommittee, and the failure to take action in any j of the right to act in the future.

Unless and until such time as Declarant delegates a Declarant’s rights under this Article expire or te over architectural matters.

Pages 22–23

he failure to take action in any j of the right to act in the future.

Unless and until such time as Declarant delegates a Declarant’s rights under this Article expire or te over architectural matters.

as rush fees for its review of each applicafiokwand €juire that such fees be paid in advance.

If such fees or charges, including jMOse se™ Section 3.3 below, are not paid in advance, the Reviewer shall have no oblfga (ine) O review any such related application. Such be B fees may include the reasonablf engineers, or other profesgj san oagd may include the compensation of such persons in img, detached structure such as but, not limited to garages, guest or # or other structures shall be commenced, erected, installed, placed, until al amd spécifications and a plot plan have been submitted to and approved in writing is he Reviewer is authorized and empowered to consider and review any and all aspects of construction and landscaping which may, in the reasonable opinion of the Reviewer, adversely affect the living enjoyment of one (1) or more Owners or the general value of the Property. In reviewing each submission, the Reviewer may consider any factors it deems relevant, including, without limitation, harmony of the proposed exterior desi gn with surrounding structures and environment. Decisions may be based on purely aesthetic considerations. Each Owner acknowledges that aesthetic determinations are purely subjective and that opinions may vary as to the desirability and/or attractiveness of particular improvements. The Reviewer shall have the 22 sole discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment and such determinations are not subject to judicial review so long as they are made in

ave the 22 sole discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment and such determinations are not subject to judicial review so long as they are made in good faith and in accordance with the required procedures.

Section 3.3 Procedure for Approval.

PRIOR TO THE COMMENCEMENT OF ANY CONSTRUCTION BY ANY PERSON OR ENTITY, THE BUILDER SHALL OBTAIN FROM THE REVIEWER™, BUILDING IMPROVEMENTS. FAILURE TO OBTAIN SUCH PERMIT, TO INITIATION OF CONSTRUCTION SHALL BE CAUSE ASSOCIATION TO REQUEST AND OBTAIN EMERGEN ontact the managing agent for Hic mail. The Owner or Builder The Declarant, Reviewer, or the The plans and specifications shall this Declaration, the Design @uigéTitits Community-Wide Standard. The Reviewer is authorized to request the sub cect es of proposed construction materials and such other information as they reasqnably\dectangdesgzary to make their determination. Applications shall ; yeWver determines that all required information needed for «reaSqns for diapqroval. Any modification of the approved set of plans and specifications mus\yagaty be sibngitted to the Reviewer for its approval. The Reviewer's approval or disappraval, ted herein, shall always be in writing NO VERBAL APPROVAL SHALL EVER BF EN OR PRESUMED. Any reliance upon a verbal approval of any plans by the Reviewer shall be wholly unjustified, at the risk of the Lot Owner and subject to any subsequent or otherwise conflicting written response by the Reviewer.

If the Reviewer fails to approve or disapprove any such plans and specifications or modification thereto submitted by a Builder within ten (10) business days after the date of submission of all information shall be deemed to have been approved notwithstanding, it shall be

Page 24

ications or modification thereto submitted by a Builder within ten (10) business days after the date of submission of all information shall be deemed to have been approved notwithstanding, it shall be the sole responsibility of the Builder to ensure that all requirements or restrictions as set forth in 23 this Declaration or the Design Guidelines are adhered to as well as any city ordinance which may exist.

The Reviewer, The Association or its managing agent shall not be held responsible for a Builder’s failure to adhere to all applicable Design Guidelines and City Ordinances as it exists or may be amended. Failure to comply could result in a request for the removal and / or replacement of any non-conforming structure or items and/or a fine for non-compliance. Any Builder who is constructing residences on multiple Lots shall have the option of submittj#Xq master set of final plans and specifications for all of the residences it intends to construct witha th&\Property to the Reviewer in accordance with the provisions of this paragraph. Once the maste has been approved, the Builder shall be allowed to construct residences in acgosdanée wif&\such For all other plans the Reviewer shall have up to thirty (30) Me date of submission of all information the Reviewer requires in order to re¥ ; vf a decision.

Should the Reviewer fail to provide a response within thirty : , the plan shall be deemed to be disapproved. The Reviewer may, but is not ofliga of require that plans be submitted or considered in stages, in which c final si I] got be required until after the final, required submission stage. The Rs 1 id charge fees for rush requests. This process is at the sole diser, ACC after the Declarant Control Period ends.

Pages 24–25

final si I] got be required until after the final, required submission stage. The Rs 1 id charge fees for rush requests. This process is at the sole diser, ACC after the Declarant Control Period ends.

As part of any approval, the Review ay requi at construction in accordance with approved plans commence within a sp€cj i J. If construction does not commence within the required period, the approva d the Owner must reapply for approval before commencing any activitie mencgd, construction must be diligently pursued to completion. All construction bleted within one (1) year of commencement unless otherwise specified in} thé of] approval or the Design Guidelines, or unless the Reviewer, in its discret ants ® -yéion in writing. If approved work is not completed process, the Reviewer may require that the construction of any 3a periodic basis prior to completion for compliance with the plans, The Owner on whose Lot the construction is taking place shall be responSple for the’ payment of costs relating to any such inspection. Builders must keep constructiOmareds clean and free of debris. A industrial sized construction waste bin must be maintained on lots to hold waste. Builders and contractors are expected to act with respect and consideration at all times toward Owners and other contractors. Streets within the Association must be kept clean and free of mud and dirt. Builder or contractors shall hire street cleaners when needed to keep streets clean and free of debris. Builders shall ensure tool boxes, containers, and other equipment is kept closed to prevent spilling of debris or construction items into street.

LOTS SHALL BE KEPT CLEAN AND PROPER BINS FOR CONSTRUCTION DEBRIS AND TRASH ARE REQUIRED. Builders are responsible for their workers.

24 Section 3.4 Standards.

debris or construction items into street.

LOTS SHALL BE KEPT CLEAN AND PROPER BINS FOR CONSTRUCTION DEBRIS AND TRASH ARE REQUIRED. Builders are responsible for their workers.

24 Section 3.4 Standards.

The Reviewer shall have sole discretion with respect to taste, design and all standards specified herein. One objective of the Reviewer is to prevent unusual, radical, curious, odd, bizarre, peculiar or irregular structures from being built on the Property. The Reviewer shall have the authority to interpret and amend the Design Guidelines, subject to Declarant’s approval for so long as Declarant or any Builder owns any portion of the Property and, thereafter, subject to Jf\approval of the Board. Any amendment shall be filed as a dedicatory instrument and delivered or rade ayailable to all Class A Members. The Association may use any electronic means of delivery or g electronic platform to make such amendments available to Owners.

reasonable and uniformly applied and shall carry forward the spiri Declaration.

Section 3.5 Requests for Variance.

Upon submission of a written narrative request for g time, in its sole discretion, permit Owners and Byers to go which are in variance from the requirements 0 City, Design Guidelines. In any case, however, J blend effectively with the general archit e Subdivision. No member all be liable to any Owner or other request by any Owner or any person 4 variance submitted hereunder sh (ist be in writing and must identify in narrative detail both is being sought and the specific variance being granted.

The plans or the site plan submitted to the Reviewer shall be the responsibility of the Owner of the Lot to which the improvements relate, and the Reviewer shall have no obligation to check for

Page 26

anted.

The plans or the site plan submitted to the Reviewer shall be the responsibility of the Owner of the Lot to which the improvements relate, and the Reviewer shall have no obligation to check for errors in or omissions from any such plans, or to check for such plans’ compliance with the general provisions of this Declaration, or any codes, ordinances, regulations or other laws, whether statutory or not, and whether the same relate to Lot lines, building lines, easements or any other issue. Review and approval of any plans pursuant to this Article may be based on purely aesthetic considerations. The Reviewer is not responsible for the structural integrity or soundness of approved construction or modifications, for compliance with building codes and other 25 governmental requirements, or for ensuring that every residence is of comparable quality, value, or size, of similar design, or aesthetically pleasing or otherwise acceptable to other Owners.

THE ASSOCIATION HEREBY UNCONDITIONALLY AND PERPETUALLY INDEMNIFIES AND HOLDS DECLARANT, THE BOARD, THE ARCHITECTURAL CONTROL COMMITTEE, AND THEIR RESPECTIVE MEMBERS, EMPLOYEES, DESIGNEES, ADMINISTRATORS, INSPECTORS, CONTRACTORS, AND AGENTS HARMLESS FROM AND AGAINST ANY CLAIMS, LIABILITIES, LOSS. DAMAGE, is INDIVIDUALS OR ENTITIES TO OR EMPLOYED BY JHE NEGLIGENTLY OR WITH WILLFUL MISCONDUCT.

Section 3.7 Special Rights of Declarant.

OVER ALL OTHER a a Mfion in the Official Public Records of Collin County Texas 4, any portion of the Property to be developed for commercial, gés as a “Restricted Outparcel” (herein so called and collectively, and each generally referred to herein as a “Restricted Outparcel”), occupancy of any Restricted Outparcel, the owners of the Restricted Outparcels and their

Pages 26–27

parcel” (herein so called and collectively, and each generally referred to herein as a “Restricted Outparcel”), occupancy of any Restricted Outparcel, the owners of the Restricted Outparcels and their occupants agree to be bound by the terms of this Section 3.8 for the benefit of each Member and the Association. The terms of this Section 3.8 may be enforced against each Restricted Outparcel and any owner or occupant thereof by the Association, and also by Declarant during the Declarant Control Period.

26 (b) Any building, structure or other improvements to be constructed within any Restricted Outparcel (including, without limitation, and renovation, expansion or alteration thereof) (the “Restricted _Outparcel Improvements”) shall be subject to the prior review and approval of the Reviewer in accordance with the terms of this Article II] applying the same procedures and requirements as if such Restricted Outparcel were one of the Lots; provided, however, the Reviewer may (but is not obligated to) establish and impose differing Design Guidelines specifically tailored to each Restricted Outparcel. The Association or Declarant may exercise any right or remedies hereunder that would apply to an Owner of a Lo@Nor at law or in equity, including, without limitation, the right to injunctive relief, in the events owner of a Restricted Outparcel to obtain the prior written consent and approval 6 with respect to any Restricted Outparcel Improvements, as required by the terpas 3.8.

(c) No Restricted Outparcel shall be included in nD described in this Declaration. Neither the Association, nor declargaft to maintain or repair any portion of the Restricted Outparcels 3 Improvements thereon. The Restricted Outparcels and the } architectural review and control rights of the Ass

Pages 27–28

ssociation, nor declargaft to maintain or repair any portion of the Restricted Outparcels 3 Improvements thereon. The Restricted Outparcels and the } architectural review and control rights of the Ass Article III.

xclusive right to make repairs and stain the exterior of such fence whenever, in the Board’s sole and absolute discretion, it deems necessary.

" bSolute discretion, the Association shall have the right to bill such repairs back to the Owner of the Lot on which such fence improvements are located, and levy such charges to such Owner’s account as a Special Individual Assessment.

27 Section 4.2 Landscaping.

Declarant and/or the Association shall have the right to grade, plant and/or landscape and maintain, repair, replace and/or change such grading, planting and landscaping on any portion of the Property not comprising any portion of a Lot and, without limitation whatsoever, to do all things necessary within the Property to obtain full compliance with applicable City ordinances.

Section 4.3. Easement.

Declarant and the Association shall have, and hereby reserve, the right at ament to enter upon the Common Properties and those Lots which are situated along thesgrita af the Property and/or the Common Properties, as shown on a Final Plat, or th | thoroughfare, for the purpose of exercising the discretionary “> for Section 4.4 Declarant and the Association’s Discretion.

Notwithstanding any provisions herein to the cogrf ’ eclarant nor the ights shall terminate and be of no is tw&rity (20) years after the recording of © wells, and flowerbeds in order to maintain lawn in an attractive manner.

ay be considered on a case by case basis depending upon the type of grass e#fianner in which the yard is maintained; Notwithstanding, no grass shall be allowed

Pages 28–29

o maintain lawn in an attractive manner.

ay be considered on a case by case basis depending upon the type of grass e#fianner in which the yard is maintained; Notwithstanding, no grass shall be allowed to exceed six inches (6”) in height. No vegetables shall be grown in any portion of a Lot or yard that faces a street or is not screened by fencing built in accordance with the terms hereof.

28 Section 5.2 Maintenance of Improvements.

Each Owner shall maintain all exterior portions of the residence and Lot in good condition and repair at all times. All buildings, fences, walls and other improvements must be kept in good condition and repair, Owner shall replace worn and rotten parts, and shall regularly repaint all painted surfaces and shall not permit the roofs, rain gutters, down spouts, exterior walls, windows, doors, walks, and driveways, parking areas or other exterior portions of the improvements to deteriorate in an unattractive manner. All fences shall be kept neat, clean and good repair.

Any fence which is damaged, leaning, or otherwise not in good repair sha qmediately repaired.

Owners who lease out their residence(s) have the same responsibili keep their residence in good condition and repair at all ti for all tenants, occupants, invitees, and guests that violate A Fines levied for non-compliance shall be the responsibility of ¢ tenant, occupant, invitee, or guest of any Owner violates a the sole discretion of the Board.

with any provision of this D requirement contained J of alf occupants, tenants, guests, and invitees) a minimum of one (1) Pgasonable time to cure such violation or failure. The amount of time ; depending upon the violation, the severity of the violation, the ation, as well as the type of violation. Violations of certain restrictions such

Pages 29–30

o cure such violation or failure. The amount of time ; depending upon the violation, the severity of the violation, the ation, as well as the type of violation. Violations of certain restrictions such e Declarant during the Declarant Control Period and thereafter, by the Board of Directors. If the Owner shall not have corrected such failure within such reasonable time after the giving of such notice, the Board of Directors shall have the right but not the obligation, to assess monetary fines which may not exceed a total of $1,000.00 per occurrence which may be levied in increments or as a lump sum and enter upon the Lot and to bring the Lot, and any improvements thereon, into full compliance with this Declaration, the Design Guidelines. All costs and expenses incurred by the Association in connection with correcting any such failure shall be borne by the Owner. If any Owner does not promptly reimburse the Association for all such 29 costs, expenses and violation fines assessed after receipt of written request for same, the Board shall have the right to assess the Owner for same plus interest, such assessment, interest and fines being a special individual assessment under the provisions of Section 10.6 below. Self-help will be considered to abate any violation as deemed necessary or appropriate by the Board of Directors.

Owners shall be solely responsible for the compliance of any resident, occupant, guest, or invitee.

Any violation cited against an Owner’s residence or Lot shall be the sole responsibility of the Owner to abate and bring into compliance. The Board of Directors may but, is not obligated to send violation notices to the resident or occupant notwithstanding the Owngf¥gall be solely

Pages 30–31

ibility of the Owner to abate and bring into compliance. The Board of Directors may but, is not obligated to send violation notices to the resident or occupant notwithstanding the Owngf¥gall be solely responsible for any monetary penalty or self-help actions enforced against his ré .

Section 6.2 Enforcement.

In addition to but not in lieu of the enforcement rights se orth i i i ; bard of Directors may impose sanctions for violation of this if rules, regulations, policies, guidelines or standards adopted pursuant to tk€ Declardti Accordance those rules ancl sanctions present in this Declaration, this Declaration and flions promulgated hereunder shall prevail. Such sanctions may in and all remedies herein, including, without liga (a) Fines. The Board of Dires sasonable monetary fines which shall constitute a lien upon the Owner of thefLopreka od with the alleged violation. The Owner shall be liable for the actions ofany g&@cup est, Wr invitee of the Owner of such Lot The same violation, regardless of its Origin, roperly noticed shall be deemed as a Separate occurrence.

(b) Suspension of R suspend any person’s or enti Properties and this rule The Board of Directors may se any recreational facilities within the Common y Owner or Owner’s occupants, tenants, pies or Sermanently if such violation causes injury or damage to any however, nothing herein shall authorize the Board of Directors saSCiation rules, regulations, and/or policies, upon failure of the Owner to do so, the Board of Directors or its designee shall have the right to enter the Lot, remove and cure the violation without such action being deemed a trespass and charge the costs thereof to the Owner’s account as a special individual assessment in accordance with Section 10.6 below.

30

move and cure the violation without such action being deemed a trespass and charge the costs thereof to the Owner’s account as a special individual assessment in accordance with Section 10.6 below.

30 (d) Levy Special Individual Assessment. The Board of Directors may levy a special individual assessment in accordance with Section 10.6 as a violation fine and/or to cover costs incurred by the Association in bringing a Lot into compliance with this Declaration, the Design Guidelines, rules, regulation, policies as well as any Community-Wide Standard whether or not said standard is in writing.

(e) Lawsuit; Injunction or Damages. The Board of Directors may bring a suit at law or in equity to enjoin any violation or to recover monetary damages, or both. Fi or the Board of Directors, to enforce any covenant, condition, agreement o contained shall in no event be deemed a waiver of the right to do so thereafter.

Association’s enforcement rights, this Declaration may be enforced by an discretion, except that the Board shall not be arbitrary or capric on Without limiting the generality of the foregoing sentence, the Bkarp or to justify expending the Association’s resou: interests, based upon hardship, expense, or ote So long as the Board of Directors has ta and has exhausted those enforcement#{ appropriate at the sole discretion of have performed their due diligenc ave the right to harass, defame through any form of media or socig any other communication tool, and may not bring suit against the Assotia slarant, the Board of Directors, or the uccessors or assigns of any of the persons is Declaration and as deemed ion shall have been considered to or entities named above.

RTICLE Vil DMENT AND TERMINATION

Page 32

rant, the Board of Directors, or the uccessors or assigns of any of the persons is Declaration and as deemed ion shall have been considered to or entities named above.

RTICLE Vil DMENT AND TERMINATION In addition to the foregoing, the Declaration may be amended by an instrument containing smal amendment(s) and recorded in the Official Public Records of the County, provided, that (i) during the period Declarant owns at least one Lot, no such amendment shall be valid or effective without the joinder and consent of Declarant and (ii) such amendment shall first be approved by the affirmative vote or written consent of the Association’s Members representing at least 51% of the votes in the Association voting, in person or by proxy, at a duly convened meeting of the Association.

31 Furthermore, Declarant or the Board may, at its sole discretion and without a vote or the consent of any other party, modify, amend, or repeal this Declaration: (i) as necessary to bring any provision into compliance with any applicable statute, governmental rule, regulation, or judicial determination; (ii) as necessary to comply with the requirements of VA, or HUD (Federal Housing Administration), FHLMC or FNMA or any other applicable governmental agency or secondary mortgage market entity; or (iii) as necessary for clarification or to correct technical, typographical or scrivener’s errors; provided, however, any amendment pursuant to clause (ii) and/or (iii) immediately above must not have a material adverse effect upon any right of gf B Member, or a Builder without the written consent of Decl respectively (or the assignee of such right or privilege).

amendment to this Declaration or the Bylaws, it will be conclusivg $#Ch termination and extinguishment shall

Pages 32–33

hout the written consent of Decl respectively (or the assignee of such right or privilege).

amendment to this Declaration or the Bylaws, it will be conclusivg $#Ch termination and extinguishment shall yen consent of the Association’s Members The Association shall have two (2) classes of voting membership: CLASS A. Class A Members shall all be Members with the exception of the Class B Member. Class A Members shall be entitled to one (1) vote for each Lot in which they hold the interest required for membership; provided, however, that in the event that more than one (1) person holds such interest or interests in any Lot, even though all such persons shall be Members, there shall be only one (1) vote for such Lot, which shall be exercised as they, among themselves, determine (but in no event shall more than one (1) vote be cast with respect to any such Lot).

CLASS B. The Class B Member(s) shall be Declarant. Until such time as 99% of the maximum number of Lots planned or approved for the Property has been conveyed to Class A Members other than Builders who purchase Lots for development and sale, the Class B Member shall have twenty-five (25) votes for each Lot owned by such Declarant. Class B Membership shall expire after title to 99% of the maximum number of Lots planned or approved fortkg Property has been transferred to Class A Members other than Builders who purchase Lots foNdevelgpment and sale. After such time, the Class B Member shall be a Class A Member entitled to Sq each Lot it owns. The Declarant Control Period, the Development Period, and De not contingent upon Declarant’s Class B status.

Section 8.3. Quorum and Notice Requirements.

meeting, except Board Meetings (unles: delivered to Members under applicable ’ gil Members not less than

Pages 33–34

De not contingent upon Declarant’s Class B status.

Section 8.3. Quorum and Notice Requirements.

meeting, except Board Meetings (unles: delivered to Members under applicable ’ gil Members not less than ten (10) days nor more than sixty (69) dé anceof eeting. Notices shall be mailed to the address of record. 2 Sr Rails f&&\ keep an updated address and e-mail on file with the Association, tht . deemed to have failed to provide notice to that Owner.

af proxies, entitled to cast at least ten percent (10%) of all of the embers, without regard to class, shall constitute a quorum. If brum (although the quorum requirement shall be reduced for each such o event shall a quorum be less than one-tenth (1/10) of the votes of the fon). During the Declarant Period, should quorum not be obtained after the first meeting, the presence of the Declarant or a delegate of the Declarant shall constitute a quorum. At such adjourned or subsequent meeting at which a quorum shall be present or represented, any business may be transacted which may have been transacted at the meeting as originally notified.

8.3.3. Except as specifically set forth in this Declaration, notice, voting and quorum requirements of any action to be taken by the Association shall be set forth in its Bylaws, as same may be amended from time to time.

Section 8.4 Right of Inspection.

Each Owner shall have the right to inspect the financial records ap Association, during normal business hours and at the place where such book reasonable prior written notice sent by certified mail to the Association stating a prop accordance with Section 209.005 of the Texas Property Code, as amended, Open Records Policy established by the Association.

ARTICLE IX ry THE COMMON PROPERTIE Section 9.1 Initial Common Properties.

Pages 34–35

op accordance with Section 209.005 of the Texas Property Code, as amended, Open Records Policy established by the Association.

ARTICLE IX ry THE COMMON PROPERTIE Section 9.1 Initial Common Properties.

The Common Properties may include b only, all aspects of the entry features, entry mg and the land on which such entry features parks, aclubhouse and associated recregtti e, gates, fences, fountains and med necessary by Declarant, each “ The foregoing list is intended to Sircumstance shall such list impose any MefSe, install or construct any such features er include any neighborhood parks or other e Association for the use and benefit of the Assessments and monetary obligations of Owners of Lots are not yon or existence of any common area, common element, amenity, or peal property may be added to the Common Properties hereunder upon the sole discretion of Declarant during such time as Declarant owns at least one (1) Lot. Thereafter, additional property may be added to the Common Properties hereunder upon the affirmative vote of at least fifty-one percent (51%) of the votes of those Association Members, regardless of class, who are voting, in person or by proxy, at a meeting duly called for such purpose.

34 Section 9.3. Acceptance and Control of Common Properties.

Declarant, or any third-party at the request of Declarant, may transfer to the Association, and the Association shall accept as Common Properties, personal property and/or fee title or other property interests in any improved or unimproved real property included within the property described in Exhibit A or any other real property made subject to this Declaration in the future in its “As Is” condition. Upon Declarant’s written request, the Association shall transfer back to

Pages 35–36

erty described in Exhibit A or any other real property made subject to this Declaration in the future in its “As Is” condition. Upon Declarant’s written request, the Association shall transfer back to Declarant any unimproved real property originally conveyed to the Associatig Each Member shall have a right and easement of acce Common Properties which is subject to the following: 9.4.1 The right of the Association to presg operation and maintenance of the Common Proper} 9.4.2 The right of the Assocja the Texas Property Code), the} to use any of the Common Prog on facilities for any period during which ned by such individual remains unpaid, tors shall have the right at any time to dedicate or transfer all or any Properties to any public agency, authority or utility for such purposes and as the Board of Directors may determine.

ARTICLE X COVENANT FOR ASSESSMENTS Section 10.1 Creation of the Lien and Personal Obligation of Assessments.

35 Each Owner hereby covenants and agrees, and each purchaser of any Lot by acceptance of a deed therefore, whether or not it shall be so expressed in any such deed or other conveyance, shall be deemed to covenant and agree to pay to the Association (or to a mortgage company or other collection agency designated by the Association) the following: (a) annual assessments or charges; (b) acquisition assessments; (c) special assessments for capital improvements; (d) individual special assessments (including, without limitation interest and fines) levied against individual Owners for violations of the Declaration, Design Guidelines or the Community-Wide and their respective family, agents, guests and invitees, or for costs incurred by resulting from any Owner failing to comply with the terms and provisions herge

Pages 36–37

esign Guidelines or the Community-Wide and their respective family, agents, guests and invitees, or for costs incurred by resulting from any Owner failing to comply with the terms and provisions herge and repairs performed by the Association on behalf of some, but not al assessments shall be fixed, established and collected as herejqafter 1 acquisition, benefitted, special capital, and individual specia yf Each such assessment, together with late charges, collections gst thereon and cost of collection thereof, including attorneys’ fees, as hereinaftg personal obligation of the person who was th assessment fell due.

¥ injury, or death. The lien provided for herein shall d the Owner shall also have personal liability for the properties, services and facilities devoted to this purpose and comprising or directly relating to the use and enjoyment of the Common Properties, including, but not limited, to the payment of taxes on and insurance in connection with the Common Properties, and the repair, replacement and additions thereto; (b) for paying the cost of labor, equipment (including the expense of leasing any equipment) and materials required for, and management and supervision of, the Common Proper-ties; (c) for carrying out the duties of the Board of Directors of the Association as set forth in Article XI hereafter including, but not limited to, the payment by the Association of all assessments and charges payable in connection with sewer, water and garbage 36 pickup services and the installation and maintenance of lighting (if any) of the Common Properties; (d) for paying the cost of maintenance of the monument sign for the Property, if any, in the event the appropriate governmental authority refuses to maintain the same; or (e) for carrying out the

ies; (d) for paying the cost of maintenance of the monument sign for the Property, if any, in the event the appropriate governmental authority refuses to maintain the same; or (e) for carrying out the purposes of the Association as stated in its Certificate of Formation.

Section 10.3Basis and Amount of Annual Assessments.

10.3.1 The Board of Directors may fix the annual assessment at g to or less than the maximum annual assessment for that year, as herei The annual assessment for each Lot beginning with fiscal year 2020 shall be Fifty and No/100 Dollars ($550.00)... Commencing with the recording odthi mation amount equal uw provided.

assessment for that year (and for following years) for eaclLot bag sofary and other known or presumed expenses of the As ion. AhYxandwme, the maximum annual assessment may not be increased more thé e %) above ation, and in each year ual assessment for the 10.3.2 Commencing with the en thereafter, the Board of Directors npéy Net assessment shall be approved bj a Wty-one percent (51%) of the votes of those Association Members in pévSon or by proxy, at a meeting duly called for such purpose.

Section 10.4Working Capital / A 1 to any Owner (excluding Lot sales from Declarant At any time, record tit a Assessment shall be paid to the Association by such to a Builder), a Working AssociatidMsc agent shall not be required to issue a Resale Certificate until payment for the cost thereof has been received by the Association or its agent. Transfer fees and fees for the issuance of a Resale Certificate shall in no event exceed $350.00 for each Lot being conveyed and are not refundable and may not be regarded as a prepayment of or credit against regular or special

Page 38

the issuance of a Resale Certificate shall in no event exceed $350.00 for each Lot being conveyed and are not refundable and may not be regarded as a prepayment of or credit against regular or special assessments, and are in addition to any other contribution which may exist or be established from time to time. This Section does not obligate the Board or any third party to levy such fees.

Notwithstanding anything to the contrary contained hereinabove, transfer fees and fees for the issuance of a Resale Certificate in connection with a transfer from Declarant to any Builder shall 37 in no event exceed $125.00 for each Lot conveyed to a Builder.

Section 10.5Special Assessments.

The Association may also levy in any assessment year a special assessment, applicable to that year only, for the purpose of defraying, in whole or in part, the costs of any unbudgeted, underbudgeted, unforeseen, extraordinary expenses or needs, construction or reconstruction, maintenance, unexpected repair or replacement of a common amenity or eleméf\and/or capital related thereto; provided that any such assessment shall not exceed fifty percent (582 current Assessment rate. Any amount over fifty percent (50%) must be affirmative vote of fifty-one percent (51%) of the votes of those Associatio expense in either enforcing said provisions 94 obligations of any such Owner, the Associatig by the Association plus interest and/or j Special individual assessment, intere by the Association.

Section 10.7. Uniform Rate or any difference in payment of all or any portion of the annual assessment at closing of the transi@mefertie toa Lot. The due date or dates, if it is to be paid in installments, of any special

Pages 38–39

m Rate or any difference in payment of all or any portion of the annual assessment at closing of the transi@mefertie toa Lot. The due date or dates, if it is to be paid in installments, of any special assessment under Section 10.5 shall be fixed in the respective resolution authorizing such assessment. Payment of Assessments is not contingent upon the construction, production, placement or existence of any amenity.

38 Section 10.9 Duties of the Board of Directors with Respect to Assessments.

10.9.1 The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period and shall, at that time, prepare a roster of the Lots and assessments applicable thereto, which shall be kept in the office of the Association and shall be open to inspection by any Owner.

10.9.2 Only if such assessment is an amount different from th previous year, written notice of the assessment shall thereupon be deli every Owner subject thereto (according the Association’s then current recom Sbarged for the mailed to the Association, setting forth whether said assessmen shall be conclusive evidence of payment of any assessmey for the issuance of such certificates.

Section 10.10 Assessment Lien to Secug All assessments, interest, late charg herein, shall constitute and be secured Jy hereby created and fixed, and which s and fixtures thereon, for the benefit and subsisting assessment lien, Nst each Lot and all improvements 6twithstanding any other provision hereof, the lien to secure the paymentf ass gny other sums due hereunder and any other lien which the Association ma Ot pursuant to this Declaration shall be subordinate to the lien or equiva ereS$of any first lien mortgage or deed of trust on any Lot.

Pages 39–40

r sums due hereunder and any other lien which the Association ma Ot pursuant to this Declaration shall be subordinate to the lien or equiva ereS$of any first lien mortgage or deed of trust on any Lot.

Any foreclosure.p of trust or other secugfty inst been made a party abayf cx the liens securing maintenance charges or assessments or any y gcame due and payable prior to such foreclosure date, but no St from the liens securing assessments thereafter becoming due jlity of any Member personally obligated to pay maintenance charges wfie due prior to such foreclosure be extinguished by any foreclosure, Iture assessments or charges be affected in any manner.

If any assessment is not paid within thirty (30) days from the due date thereof, the same shall bear interest from time to time, at the sole discretion of the Board, from the due date until paid at the highest non-usurious rate allowed under the laws of the State of Texas, or other applicable law, or ifno such limitation imposed then at the rate of fifteen percent (15%) per annum, and if placed in the hands of an attorney for collection or if collected through probate or other judicial proceedings, there shall be reimbursed to the Association its reasonable attorneys’ fees.

Should the Board set different terms for payment of Assessments the Board shall, at that time, set 39 the standard with regard to amount of time Owners shall have to submit the payment without being considered late. Should any assessment provided for herein be payable in installments, the Association may accelerate the entire assessment and demand immediate payment thereof. In addition, a late charge shall be assessed against the non-paying Owner for each month that any

Pages 40–41

stallments, the Association may accelerate the entire assessment and demand immediate payment thereof. In addition, a late charge shall be assessed against the non-paying Owner for each month that any assessment remains unpaid. The late charge shall be in the amount of Twenty-Five and No/100 Dollars ($25.00) per month and shall serve to reimburse the Association for administrative expenses and time involved in collecting and processing delinquent assessments. Monthly charges may, and probably will, be charged by the Association’s mang€é agent for reimbursement of collection and processing of delinquent accounts. The Assoctati agent may and probably will have other fees by which compensation is made to for its efforts in collecting delinquent assessments. Such fees may include but a party collection agencies, certified and return receipt mailings and profesfi processing and monitoring and other. A charge of not 1essgh ny Dollars ($25.00) or an amount equal to the bank charge incurréd.

Association, in the Board’s discretion, shall have the right interest and/or fees owed to the Association.

with interest thereon as provided herej and costs incurred in the collection o efcise of the Board’s business judgment.

pvided for herein and shall have the priorities gent the right and power to bring all actions against such Owner such assessments as a debt and to enforce the ainretd lien by all in substitute erefore, and such Owner wt hereby expressly grants to the Board of Directors a private power of sale in connection with said lien. The Board is hereby appointed trustee, unless and until the Board of Directors shall designate a substitute or successor trustee, as hereinafter provided, to post the required notices as provided by law and conduct such foreclosure sale.

40

nless and until the Board of Directors shall designate a substitute or successor trustee, as hereinafter provided, to post the required notices as provided by law and conduct such foreclosure sale.

40 The lien provided for in this Section shall be in favor of the Association and shall have the same effect as though each Owner had expressly granted to the Association a deed of trust lien as well as a security interest in said Lot to secure the payment of the assessments provided for herein.

In addition to such notices as required by the aforesaid statute, the trustee shall mail to the Owner of a Lot for which the assessment has not been paid, a copy of the notice of assessment lien prior to the date any notice of sale is posted, by certified, return receipt requested, at the Lot or such other address as the Board has been advised in writing for receipt of notices under this Declaration.

Notwithstanding the foregoing, any mandatory foreclosure requirements of won 209 of the Texas Property Code shall be adhered to by the foreclosing entity.

At any foreclosure, judicial or nonjudicial, the Association shall be entjtk amount of its lien, together with costs and attorneys’ fees, and to apply a bid all sums due the Association covered by the lien forecloseda.All f for herein shall be subject to any then existing statutory right ok i Owner. From and after any such foreclosure, the former Owng assigns, shall forthwith upon the making of such sale surrender dad d&kjve géssion of the property so sold to the purchaser at such sale, and in thg C or and substitute trustees successively paid in full, or until said property is sold, scd to all the rights and powers of the original awe appticable. This Section is not intended to limit or restrict in any way the

Page 42

te trustees successively paid in full, or until said property is sold, scd to all the rights and powers of the original awe appticable. This Section is not intended to limit or restrict in any way the ights grarted fo the Association by this Declaration, but construed in its favor.

The omission of the Board of Directors, before the expiration of any assessment period, to fix the assessments hereunder for that or the next assessment period, shall not be deemed a waiver or modification in any respect of the provisions of this Declaration, or a release of any Owner from the obligation to pay the assessments, or any installment thereof for that or any subsequent assessment period, but the assessment fixed for the preceding assessment period shall continue until a new assessment is fixed or levied by the Board.

4] Section 10.15 Reserve Fund.

10.15.1 The Association, after the Declarant Control Period, shall establish and maintain a Reserve Fund for the periodic maintenance or improvements of the Common Properties and for any need of the Association. A Reserve Fund as described in this Section is not the Working Capital and/or Acquisition Assessment noted in Section 10.4 above.

During the Declarant Control Period, the Declarant has no obligation to establish or fund a Reserve Fund; Notwithstanding, should any such fund be established, gA®yarate account The Reserve Fund may be funded from Assessments collected but, may not’ Working Capital / Acquisition Assessments collected during the Declayam without the Declarant’s approval. After the Declarant Control Péri Capital / Acquisition Assessments may be used to establighand/orftu if no such account exists. Subject to the provisions of S at any time ratably increase or decrease the amounts o

Pages 42–43

larant Control Péri Capital / Acquisition Assessments may be used to establighand/orftu if no such account exists. Subject to the provisions of S at any time ratably increase or decrease the amounts o including provisions for funding reasonable rese business judgment in determining the a held in reserves shall be considered adéq The following property syBject to“his Ng charges and liens created here} ation shall be exempted from the assessments, 10.16.1 All p iegdedicated and accepted by the local public authority anthdevoted’to public use; and ots and/or Property owned by Declarant, subject to the terms Sections 10.17 and 10.18 below; and All Common Properties.

Declarant Subsidy.

aratft may, but shall not be obligated to, pay a subsidy to the Association in order to reduce the total annual assessment which would otherwise be necessary to be levied against all Lots to cover the estimated expenses of the Association (including reserve contributions, if any).

Any such subsidy shall be disclosed as a line item in the income portion of the budget and may be treated by the Declarant, in its sole discretion, as a loan from the Declarant to the Association or as an advance against future assessments due or as a contribution.

42 Prior to Declarant subsidizing the Association, Declarant may require the Association to apply monies from all sources to include, but is not limited to, revenues from the operation of Common Properties, Working Capital / Acquisition Assessments, guest fees, user fees, and the assessments levied against the Owners of Lots, other than the Declarant as well as general reserve funds should the same exist. Any sums paid by the Declarant to the Association to fund the

s, and the assessments levied against the Owners of Lots, other than the Declarant as well as general reserve funds should the same exist. Any sums paid by the Declarant to the Association to fund the “deficiency” of the Association or any sums paid by the Declarant in the form of cash or in-kind services or materials. Any subsidy provided may be considered by the Declarant as a loan subject to the terms as set forth in the Declaration or the Declarant’s Reservations and RO™ esentations, if applicable and the Association shall cooperate, fully, with the repayment of a the Declarant’s request. After termination of the Class B membership, Declaxa assessments on its unsold Lots in the same manner as any other Owner.

Section 10.18Declarant’s Assessment.

grmation or e Declarant Notwithstanding any provision of this Declaration or the Bylaws to the contrary, so long as there is Class B membership in the is not subject to assessments.

Except as provided in Article ¥ Property and the Owners shall have ings which are necessary or advisable in connection with enforcing the ffovisions of Declaration. During the Declarant Control Period the Declarant may limitfor pywerMo the Board at its sole discretion. Such powers shall include, but shall not b , the following unless Declarant dictates otherwise in writing: Ssessmenis and charges for sewer, water and garbage pickup if any, the installation and maintenance charges for street if any, and taxes, assessments and other charges which shall gr charged against the Common Properties.

11§1.2] Performing maintenance on the Common Properties which may include, Mnitgtion, the following: (a) maintenance of any driveways, private roadways, Mis, walkways and sidewalks; (b) maintenance of grounds, including care of

Page 44

nce on the Common Properties which may include, Mnitgtion, the following: (a) maintenance of any driveways, private roadways, Mis, walkways and sidewalks; (b) maintenance of grounds, including care of safubs and grass, lighting systems, sprinkler systems (if installed) and similar facilities on the Common Properties; and (c) maintenance of the entry monument(s) and any screening walls or fences constructed around the perimeter of the Property; provided, further, that in the event that the need for maintenance or repair is caused through the willful or negligent act of any Owner, his family, his guests or invitees, the cost of such maintenance or repairs shall be added to and become a part of the assessment to which such Lot is subject.

43 11.1.3. Managing and maintaining the Common Properties and full maintenance of a utility service for the Common Properties; the furnishing and upkeep of any desired personal property for use in the Common Properties.

11.1.4 Purchasing a policy or policies of insurance insuring the Association against any liability to the public or to the Owners (and/or invitees or tenants) incident to the operation of the Association, in an amount not less than $250,000.00 to indemnify against the claim of one person, $500,000.00 against the claims of two pf aore persons in any one occurrence, and property damage insurance in an amount not le& per occurrence; which policy or policies shall contain an endorsement prd rights of the named insured shall not be prejudiced with respect to got named insured’s; provided, that under no circumstances shall the provide or pay for fire, casualty, or other insurance insupige the jit his Lot. <P Declarant), maintaining one o necessary or incidental to the Common Properties from loss or damage by

Pages 44–45

ances shall the provide or pay for fire, casualty, or other insurance insupige the jit his Lot. <P Declarant), maintaining one o necessary or incidental to the Common Properties from loss or damage by uate reserves for replacements.

& reasonable rules and regulations for the operation of the Common ation*ef the Association and ability to amend them from time to time, 0) of those Members present, in person or by proxy, at a meeting (without limiting the generality of the foregoing language, the rules # provide for limitations on use of the Common Properties during ertain pehiods by youthful persons, visitors or otherwise).

£10 Adjusting the amount, collecting and using any insurance proceeds to mage or replace lost property, and if proceeds are insufficient to repair damage or replace lost property, assessing the Members in proportionate amounts to cover the deficiency.

1.1.11 Enforcing the provisions of this Declaration, the Design Guidelines, any Community-Wide Standard, and any rules made hereunder, and to enjoining and seeking damages from any Owner for violation of such provisions or rules.

44 11.1.12 Exercising the rights granted to the Association in this Declaration, including, without limitation, all rights of the Board, the Association, and the ACC relating to architecture, design, and construction review and inspections under Article III.

The Association may exercise any right or privilege given to it expressly or by reasonable implication by this Declaration, the Bylaws, or the Certificate of Formation, and may take action reasonably necessary to effectuate any such right or privilege. Except as otherwise specifically provided in such documents or by law, all of the Association’s rights and powersfMay be exercised

Pages 45–46

ction reasonably necessary to effectuate any such right or privilege. Except as otherwise specifically provided in such documents or by law, all of the Association’s rights and powersfMay be exercised by the Board without a vote of the membership.

The Board shall have the exclusive fig payment for which is to be made from th i to perform the functions of the Board Section 11.3 addition to all other alternative remedig er (by acceptance of a deed for his Lot) hereby covenants and agrees e cost thereof immediately upon demand, and the failure of any such e shall carry with it the same consequences as the failure to pay any hergéindgr when due.

4 Maintenance Contracts with Owners.

The Board, on behalf of the Association, shall have full power and authority to contract with any Owner, including Members of the Board, for the performance by or for the Association of services pursuant to the terms hereof (including, but not limited to, the maintenance and repair of fences owned by any such Owner), such contracts to be upon such terms and conditions and for such consideration as the Board may deem proper, advisable and to the best interest of the 45 Association; provided, however, that same must be commercially reasonable in all circumstances.

Contracts which may be entered into with a member of the Board shall comply with all applicable local and /or State ordinances. Members of the Board may not be compensated for performance related to their duties as a Board of Director.

Section 11.5 Liability of the Board of Directors.

The Association shall indemnify every officer, director, and committee pfMeber against all damages and expenses, including attorneys’ fees, reasonably incurred in cofyecti\g with any

ard of Directors.

The Association shall indemnify every officer, director, and committee pfMeber against all damages and expenses, including attorneys’ fees, reasonably incurred in cofyecti\g with any action, suit, or other proceeding (including settlement of any suit or proceeding if Japro¥ed by the Board of Directors at the time of such settlement) to which he or she may be grfm ayon of being or having been an officer, director, or committee member. OFFIG f S, AND COMMITTEE MEMBERS SHALL NOT BE LIABL& FOR. J SMAKY OF JUDGMENT, NEGLIGENCE OR OTHERWISE, xy OWN INDIVIDUAL WILLFUL MISFEASANCE, MALFEASANCR OR BAD FAITH. The Association’s officers and directors shall have no perSe 42D th respect to any contract or other commitment made or action taken in goo faitPon’ The Association shall indemnify and forever hold each £uc member harmless from any and all liability to ot pn acqouryt of any sugh contract, commitment, or action. This right to indemnification shal : present or former officer, director, or commy as an Association expense, maintain adeg insurance to fund this obligation, if s officers’ and directors’ liability available.

Section 11.6 Notice and Heagf . bor to the Initiation of Certain Types of Actions by the Association.

Except as set forth in pAragfapt(c) keloW prior to filing suit to enforce the provisions of g vith the notice and hearing procedures set forth in g (i) te nature of the alleged violation and a request for its abatement, & AsSgciation proposes or intends to take unless the violation is corrected llotted INMhe notice. Within a period of not less than thirty (30) days within as|notified of the alleged violation, the Owner may present a written request

Page 47

s to take unless the violation is corrected llotted INMhe notice. Within a period of not less than thirty (30) days within as|notified of the alleged violation, the Owner may present a written request , F Owner does not abate/cure any violation within the time frame given, the Assoctaion may prgceed with the action which may include the Association’s right to initiate Self Help actidweywhefein the Association shall make the necessary repairs to correct the violation and all charges incurred by the Association in abating the violation shall be assessed to the Owner’s account. Emergency situations as they may be deemed to exist by the Declarant, the Board or its managing agent shall be exempt from the time restraints or limitations set forth for self-help so long as it is reasonably assumed, using good faith judgment, that the violation causes or may cause injury, be a health hazard to persons or animals, may cause damage to Owner’s property or common property or neighbors adjoining property. A twenty-four (24) hour notice shall be given 46 and may be done by e-mail or posting to the front door of the Owner’s property. Notice by U.S.

mail may also be made but, shall not prevent or hinder the twenty-four (24) hour rule in the case of emergencies. If Owner requests a hearing the violation and/or fine process shall be suspended until after the hearing is held and a decision has been rendered.

Non-Payment of fines for non-compliance or charges assessed by the Association for Self Help remedies will be collected according to applicable law and per current Texas Property Code regulations. Charges will be subject to possible late and/or collectiop“eparges when applicable. If the violation is abated within the time period set forth in the gotice, the

rent Texas Property Code regulations. Charges will be subject to possible late and/or collectiop“eparges when applicable. If the violation is abated within the time period set forth in the gotice, the Association shall suspend the proposed action unless a similar violation occurs Y months from the date of the written notice. Such suspension shall not constit right to sanction future violations of the same or other provisions and Recurring violations within a six (6) month period will not yp notices previously sent. If the required notice was previously € discretion, send an immediate notice of fine warning to the Owner not less than five (5) days t to correct the violation, excluding any (b) Hearing. If a hearing is req violation notice being provided, the heapt élarant. A representative of the able opportunity to make a statement the committee may close ‘the: as to whether, in fact, a be rendered by U.S.

Association, in wrift haSsgco#rrgél or may announce to the Owner that a decision will as of the hearing date. The committee shall notify the If the committee determines that a violation has relief, (11) Pextatfiing to the collection of assessments; or (iii) where the Association decides to exercise its right of self-help to cure the violation after written notice to the Owner and an opportunity to cure.

(d) Right of Action. The Association shall not have the power to institute, pursue, join, intervene in, settle or compromise litigation, arbitration or other proceedings: (i) in the name of or on behalf of any Owner (whether one or more); or (ii) pertaining to a claim relating to the design, construction or repair of a residence, a Lot or any improvements on a Lot (other than a

Page 48

e name of or on behalf of any Owner (whether one or more); or (ii) pertaining to a claim relating to the design, construction or repair of a residence, a Lot or any improvements on a Lot (other than a 47 Claim (as defined in Section 12.6.2 hereof) relating to Common Properties to be maintained by the Association hereunder on one or more Lots). This Section may not be amended or modified without Declarant’s written and acknowledged consent and the consent of Members entitled to cast at least one hundred percent (100%) of the total number of votes of the Association, both of which must be part of the recorded amendment instrument.

ARTICLE XII AUTHORITY AND CONTROL BY DECLARANT Section 12.1 Declarant Rights.

Notwithstanding anything herein to the contrary, so long as Dg one (1) Lot, Declarant shall have the sole right, but not the gblj I at any time, effective as of the date hereof, to control, perfo (1) amend this Declaration, the Design Guidelines_artd Standard, in whole or in part for any reasona (2) ines, policies, rules and ed, or rescinded. Limit or ntracts and Agreements; (3) PML al control of the Lots. So long as Dich to construct, the Declarant alone or above are absolute in its sole discretion and do not require the gay Owner, (ii) the Association, (iii) the Board of Directors, or r partfés which may be established with respect hereto. At such time Sa Lot within the Property, all of such rights of enforcement shall iMeefors of the Association. In the event any other provision in this radiction to this Article XII, in whole or in part, this Article XII shall Easement to Inspect and Right to Correct.

Declarant reserves for itself and others it may designate the right, but not the obligation, to

Pages 48–49

this Article XII, in whole or in part, this Article XII shall Easement to Inspect and Right to Correct.

Declarant reserves for itself and others it may designate the right, but not the obligation, to inspect, monitor, test, redesign, and correct any structure, improvement, or condition which may exist on any portion of the Property, including Lots, and a nonexclusive easement of access throughout the Property to the extent reasonably necessary to exercise such right. Except in an emergency, entry onto a Lot shall be only after reasonable notice to the Owner and no entry into a residence or other structure on a Lot shall be permitted without the Owner’s consent, which consent 48 shall not unreasonably be withheld, conditioned, or delayed. The failure or refusal to permit reasonable access to the Lot for the purposes contemplated under this paragraph shall excuse Declarant or its designee from responsibility for repairs or damages relating to defective workmanship or materials.

Section 12.3 Right to Develop.

Declarant and its employees, agents, and designees shall have a right of acg& an easement over and upon all of the Property for the purpose of making, s and use and Section 12.4 Construction Activities.

All Owners, occupants, and users of Lots are hereby plac o>y entes its agents, contractors, subcontractors, licensees, and other desi Owner shall interfere with the development and buildodt of An. Owners are hereby put on notice that any such interferen yimber of violations or actions which may be initiated by the Decls » Association. By the acceptance of a deed or other conveyance or #f using any portion of a Lot or the Propermeoe y, ih ers“and all occupants and users of property within or in proximity to the Lot where

Pages 49–50

ssociation. By the acceptance of a deed or other conveyance or #f using any portion of a Lot or the Propermeoe y, ih ers“and all occupants and users of property within or in proximity to the Lot where wie actively conducted at the time of entry, such hours); (c) that Declarant and all of its agents, 2 acknowledges that Subdivision is a planned community, the development of which is likelyée*extend over many years, and agrees that the Association shall not engage in, or use Association funds to support any protest, challenge, or other form of objection to (a) changes in uses or density of property within the Property, or (b) changes in the master plan of Subdivision, including, without limitation, the enlargement of the master plan and the acquisition or revision of regulatory approvals to reflect the annexation of real property, without Declarant’s prior written consent, which consent may be granted or withheld in Declarant’s discretion.

49 Each Owner acknowledges and agrees that the present plans and themes for the Property’s development may change and that it has not relied on any representation, warranty, or assurance by any person: (a) that any Lots, or other property or facilities will or will not be added, modified, or eliminated within the Property; or (b) as to the financial or other impact of such action on any Owner. Each Owner acknowledges and agrees that it is not entitled to rely upon and has not received or relied upon any representations, warranties, or guarantees whatsoever as to: (a) the design, construction, completion, development, use, benefits, or value of the Pro perty; or (b) the number, types, sizes, prices, or designs of any residential structures or improvepfemg built or to be built in any part of the Property.

Section 12.6 Dispute Resolution.

Pages 50–51

e of the Pro perty; or (b) the number, types, sizes, prices, or designs of any residential structures or improvepfemg built or to be built in any part of the Property.

Section 12.6 Dispute Resolution.

(a) AGREEMENT TO ENCOURAGE RESOLUTI LITIGATION.

12.6.1 Bound Parties, Declarant, the Association ‘ko committee members, Owners, residents, and all other parties subtes Party”, or collectively, the “Bound Parties”), agree that i to encourage the amicable resolution of disputes financial costs of litigation. Accordingly, egek with respect to a Claim described in subseg : Claim to the alternative dispute resolutio gS SX in this Section in a good faith effort to resolve such Claim.

ithout the emotional and to file suit in any court (ii) Common Properties g € design or construction of improvements on the matters of aesthetic judgment under Article 11, which will onsidered Claims. The following will not be considered “Claims” Bless all parties to the matter otherwise agree to submit the matter to any legal proceeding by the Association to collect assessments or other amountSdue from gfiy Owner; (11) any legal proceeding by the Association to obtain a temporary restraining order (or emergency equitable relief) and such ancillary relief as the court may deem necessary in order to maintain the status quo and preserve the Association’s ability to enforce the provisions of this Restrictions; 50 (iii) any legal proceeding which does not include Declarant or the Association as a party, if such action asserts a Claim which would constitute a cause of action independent of the Restrictions; and (iv) any action by the Association to enforce the Restrictions.

12.7 CLAIMS REGARDING COMMON PROPERTIES.

12.7.1 Claim by the Association— Common Properties. The A’ Kon does not

f the Restrictions; and (iv) any action by the Association to enforce the Restrictions.

12.7 CLAIMS REGARDING COMMON PROPERTIES.

12.7.1 Claim by the Association— Common Properties. The A’ Kon does not have the power or right to institute, defend, intervene in, settle, or compromNe liftgation or administrative proceedings: (i) in the name of or on behalf of any Owner (whgék wore); or (ii) pertaining to a Claim, as defined in Section(s) described above, reMti a or construction of a residence (whether one or more). In the eveat the AfsoCiad , wner asserts a Claim related to the Common Properties, as a pecondiQay idj ticglefined in this Article, initiating the mandatory dispute resolution proce ‘Article or taking any other action to prosecute a Claim related to the Common ont sociation or an Owner, as applicable, must: (i)Independent Report on the diti« : Properties. Obtain an independent third-party report (the “Com gm a licensed professional engineer in the same area of engineer; engineer is qualified which: (A) identifies the Common Properties ding the present physical condition Non, Mafhtenance, or repairs to the Common Properties performed by the Owner(s) Ynd/di&the As ation; (C) provides specific and detailed recommendations regarding remediatidw? the Common Properties subject to the Claim. For the purposes of thi % aiNndependent third-party report is a report obtained directly by the Association or ay paidorby the Association or an Owner, as applicable, and not prepared by a person br otherwise affiliated with the attorney or law firm that represents or will represe iaglon or an Owner in the Claim. As a precondition to providing the Notice d€scribed“kerein, the’Association or Owner must provide at least ten (10)

Page 52

ttorney or law firm that represents or will represe iaglon or an Owner in the Claim. As a precondition to providing the Notice d€scribed“kerein, the’Association or Owner must provide at least ten (10) days prior written pétige™s inspection to each party subject to a Claim which notice shall engaged to prepare the Common Properties Report, the Mspected, and the date and time the inspection will occur. Each S § Nay attend the inspection, personally or through an agent. Upon , thts yOperties Report shall be provided to each party subject to a claim. In . beforeNproyiding the Notice described herein, the Association or the Owner, as 8, shall DAvespermitted each party subject to a Claim the right, for a period of ninety (90) inspeetfind £orrect, any condition identified in the Common Properties Report.

(ii) | Owner Meeting and Approval. Obtain approval from Members holding eighty five percent (85%) of the votes in the Association to provide the Notice described herein, initiate the mandatory dispute resolution procedures set forth in this Article 12, or take any other action to prosecute a Claim, which approval from Members must be obtained at a special meeting of Members called in accordance with the Bylaws. The notice of meeting required hereunder will be provided pursuant to the Bylaws but the notice must also include: (A) the nature of the Claim, the relief sought, the anticipated duration of prosecuting the Claim, and the likelihood of success; 51 (B) a copy of the Common Properties Report; (C) acopy of any proposed engagement letter, with the terms of such engagement between the Association and an attorney to be engaged by the Association to assert or provide assistance with the claim (the “Engagement Letter”); (D) a

ement letter, with the terms of such engagement between the Association and an attorney to be engaged by the Association to assert or provide assistance with the claim (the “Engagement Letter”); (D) a description of the attorney fees, consultant fees, expert witness fees, and court costs, whether incurred by the Association directly or for which it may be liable if it is not the prevailing party or that the Association will be required, pursuant to the Engagement Letter or otherwise, to pay if the Association elects to not to proceed with the Claim; (E) a summary of the steps previously taken, and proposed to be taken, to resolve the Claim; (F) an estimate of the impact op/P Lot and improvements if the Claim is prosecuted and an estimate of the impad< on“ge value of each Lot and improvements after resolution of the Claim; (G) an estimate of the\ a on the marketability of each Lot and improvements if the Claim is prosecuted and dyrtta prdgecuion of the Claim, and an estimate of the impact on the value of each Lot and imp 0 by diing Bnd after resolution of the Claim; (H) the manner in which the Assogi tion pfopfos cost of prosecuting the Claim; and (I) the impact on the finances g Asgotigti lyding the impact on present and projected reserves, in the event the Associat#en ing party.

The notice required by this paragraph must be prepared and signed b ethan, and not employed by or otherwise affiliated with, the attorney or law the Association or Owner, as applicable, in the Claim Association, in the event Members approve pro other action to prosecute a Claim, the Membe at a special meeting called in accordance wif pursuit of the Claim.

(ii) Prohibition on @ engage or contract with any attorney, law?

basis, in whole or in part, to assisg

Page 53

prosecute a Claim, the Membe at a special meeting called in accordance wif pursuit of the Claim.

(ii) Prohibition on @ engage or contract with any attorney, law?

basis, in whole or in part, to assisg afl, expert or advisor on a contingency fee of a Claim.

12.8 NOTICE s for All Claims. The Bound Party asserting a Claim ad Party (“Respondent”) must notify the Respondent in writing angplainly and concisely: (A) the nature of the Claim, including involved, and Respondent’s role in the Claim; (B) the basis of the ye Restrictions or other authority out of which the Claim arises); (C) ident to do or not do to resolve the Claim; and (D) that the Notice is this Section. AII Bound Parties agree that the provisions of Chapter 27 of the éde shall control any Claim, and they expressly adopt and incorporate the terms of Chapter 27 of te Texas Property Code as is full set forth herein. If the Claimant is the ‘of to proceeding with negotiations under this Article/ Section, the Association shall fully comply with provisions of Chapter 27 of the Texas Property Code, but for all other Claims ; the time period for negotiation in Section(s) below or as provided herein, is equivalent to the sixty (60) day period under Section 27.004 of the Texas Property Code. [fa Claim is subject to Chapter 27 of the Texas Property Code, the Claimant and Respondent are advised, in addition to compliance with this Article and all Sections, to comply with the terms and provisions of Section 27.004 during such sixty (60) day period. No Section of this Dispute Resolution is intended to modify or extend the time period set forth in Section 27.004 of the Texas Property Code. Failure 52 to comply with the time periods or actions specified in Section 27.004 shall not affect a Claim and

modify or extend the time period set forth in Section 27.004 of the Texas Property Code. Failure 52 to comply with the time periods or actions specified in Section 27.004 shall not affect a Claim and the Respondent shall have all rights and remedies under Chapter 27 of the Texas Property Code.

The one hundred and twenty (120) day period for mediation set forth herein below is intended to provide the Claimant and Respondent with sufficient time to resolve the Claim in the event resolution is not accomplished during negotiation. Ifthe Claim is not resolved during negotiation, mediation pursuant to this Article is required without regard to the monetary amount of the Claim.

(ii) Special Notice for Association. If the Claimant is thé As¥qciation, the Notice will also include: (A) a true and correct copy of the Common Properties R&xo of the Engagement Letter; (C) copies of all reports, studies, analyses, and recotn dations obtained by the Association related to the Common Properties which forms the this Article (ii) above; and (E) and reasonable and credible ae) holding eighty-five percent (85%) of the votes in the Associatiotndppt’ If the Claimant is the Association, providing the information iderf " Econ (ii) is a condition precedent to the assertion of any Claim. Should the-Agsot a favetO provide the information required by this Section (ii) to the Respondent Ros Sgt shgll be entitled to a temporary injunction enjoining the prosecution ofthe Cle i provides the information required by this seo ph, Se dismissed with prejudice, @ confirm such dismissal.

12.9. NEGOTIATION. Clai meet in person to resolve the Claim b wfion. At any time during the negotiation sclarant may make repairs to the Common As N. If the parties negotiate, but do not resolve the Claim through

Page 54

ATION. Clai meet in person to resolve the Claim b wfion. At any time during the negotiation sclarant may make repairs to the Common As N. If the parties negotiate, but do not resolve the Claim through negotiathep gie-hundred twenty (120) days from the date of the Notice (or within such other period as mdy*be agreed on by the parties), Claimant will have thirty (30) additional days within which to submit the Claim to mediation under the auspices of a mediation center or individual mediator on which the parties mutually agree. The mediator must have at least five (5) years of experience serving as a mediator and must have technical knowledge or expertise appropriate to the subject matter of the Claim. If Claimant does not submit the Claim to mediation within the 30-day period, Respondent will submit the Claim to mediation in accordance with this Section.

53 12.11 TERMINATION OF MEDIATION. If the Parties do not settle the Claim within thirty (30) days after submission to mediation, or within a time deemed reasonable by the mediator, the mediator will issue a notice of termination of the mediation proceedings indicating that the Parties are at an impasse and the date that mediation was terminated. Thereafter, if the Association is the Claimant, it shall provide a report of the mediation to the Members of the Association, which such report shall provide the last best offer made by the Respondent, the last best offer by the Association, and the reason the Association did not accept the offer made by the Respondent. After such report is provided to the Members, the Board shall cal Seccial meeting of the Members, at which special meeting the Members shall vote on whether .

vote to accept the Respondent’s last, best offer, the Board shall accept the Resptmden

the Board shall cal Seccial meeting of the Members, at which special meeting the Members shall vote on whether .

vote to accept the Respondent’s last, best offer, the Board shall accept the Resptmden offer and shall dismiss the Claim. Claimant may file suit or initiate arbitraponmrocOadiny Claim, as appropriate and permitted by this Article.

arbitration. Claimant or Respondent may, by summary proge motion to stay further proceedings), bring an action in coy 12.13 Governing Rules. Ifa Clai iS b wfter Mediation as required by this Article, the Claim will be resolved& ; its accordance with the terms of this : n Association (“AAA”) or, if the AAA is unable or unwilling to act as gn the arbitration shall be conducted by another neutral reputable arbitration sé Respondent. Regardless of what entity or person is acting as the arbitrator n shall be conducted in accordance with the the choice of rules governing the arbitration of any etm, identified different rules that would specifically apply apply instead of the rules identified above. In the event of any Si Applicable rules and this Section, this Section will control.

endered by the arbitrator shall be binding and not subject to appeal, but gmenvin any court having jurisdiction. Notwithstanding any provision to aftplicable rules for arbitration, any arbitration with respect to Claims arising coyducted by a panel of three (3) arbitrators, to be chosen as follows: 13.1 Exceptions to Arbitration; Preservation of Remedies. No provision of, nor the exercise of any rights under, this Section will limit the right of Claimant or Respondent, and Claimant and the Respondent will have the right during any Claim, to seek, use, and employ ancillary or preliminary remedies, judicial or otherwise, for the purposes of realizing upon,

Page 55

Respondent, and Claimant and the Respondent will have the right during any Claim, to seek, use, and employ ancillary or preliminary remedies, judicial or otherwise, for the purposes of realizing upon, preserving, or protecting upon any property, real or personal, that is involved in a Claim, including, without limitation, rights and remedies relating to: (i) exercising self-help remedies (including setoff rights); or (ii) obtaining provisions or ancillary remedies such as injunctive relief, sequestration, attachment, garnishment, or the appointment of a receiver from a court having jurisdiction before, 54 during, or after the pendency of any arbitration. The institution and maintenance of an action for judicial relief or pursuit of provisional or ancillary remedies or exercise of self-help remedies shall not constitute a waiver of the right of any party to submit the Claim to arbitration nor render inapplicable the compulsory arbitration provisions hereof.

12.13.2 Statute of Limitations. All statutes of limitations that would otherwise be applicable shall apply to any arbitration proceeding under this Won, and to the fullest extent allowed under law, any action, lawsuit and/or claim whatsoeve ; Association or its assigns, regardless of form, that arises from or relates to this De Property, the Subdivision, the Lots, the residences, the improvements or otherywiesesl it is brought not later than two (2) years and one (1) day from the date the cg 12.13.3 Scope of Award: editeatin SOA atloy . The arbitrator shall resolve all Claims in accordance with the applicab Q provided by this Section. The arbitrator may grant any rem just and equitable and within the scope of this Sectio ion 12.14 below (attorney’s fees and costs may not be awarded); p64 laim, or any portion

ovided by this Section. The arbitrator may grant any rem just and equitable and within the scope of this Sectio ion 12.14 below (attorney’s fees and costs may not be awarded); p64 laim, or any portion of a Claim governed by Chapter 27 of the T< : any successor statute, in no € arbitrator deem to under Chapter 27 of the Texas Propert make specific, written findings of factfnd n proceedings the arbitrator shall In all arbitration proceedings the any award that is based in whole, ally sufficient evidence, as those terms Troneous; (iii) an error of federal or state provided under existing state or federal law are defined in Texas law; (ii) conclusiotts law; or (iv) a cause of action or re or otherwise in accordance withth as arkd coh@ftions of this Declaration. In no event may an arbitrator award speculative, donde pecial, indirect, lost profit or punitive damages for any Claim. Notwithstanding Ascfcontained in this Declaration, no Claimant shall be entitled to an award i of Applicable Law, a hall not provide an award, unless the arbitrator determines that such Pigim x at¥yial violation of any Applicable Law and that such material N3. Other Matters. To the maximum extent practicable, an arbitration provgedi shall be concluded within one hundred and eighty (180) days of the filing of the itor arbitration by notice from either party to the other. Arbitration proceedings hereundeNghall beonducted in the county where the Property is located. The arbitrator shall be empowered to impose sanctions and to take such other actions as the arbitrator deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure and applicable law. The arbitrator shall have the power to award recovery of

Page 56

ssary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure and applicable law. The arbitrator shall have the power to award recovery of all costs and fees, subject to the limitations in this Article and any of the pertinent Sections thereto, Each party agrees to keep all Claims and arbitration proceedings strictly confidential, except for disclosures of information required in the ordinary course of business of the parties or by applicable law or regulation. In no event shall any party discuss with the news media or grant 55 any interviews with the news media regarding a Claim or issue any press release regarding any Claim without the written consent of the other parties to the Claim.

12.14 ALLOCATION OF COSTS. Notwithstanding any provision in this Declaration to the contrary, each Party bears all of its own costs incurred prior to and during the proceedings described in the Notice, Negotiation, Mediation, and Arbitration sections above, including its attorney’s fees. For avoidance of doubt, the prevailing party in any ArbitratiopSkall not recover any attorneys’ fees, expenses, or costs. Respondent and Claimant will equally dyyideXg and fees charged by the mediator and arbitrator, Claimant on account of the Claim does not release Responden 12.15 GENERAL PROVISIONS. A release or onden not party to Claimant’s Claim.

12.16 PERIOD OF LIMITATION.

12.16.1 For Actions by any of the Parties to bring any Claim, includjat or construction of improvements (includi Properties or Lots, shall be no later than vo discovered or reasonably should have 4 12.16.2 For Actidg for the Association to bring any Claim or construction of improvementge¢i The Association must levy a Special

Pages 56–57

Lots, shall be no later than vo discovered or reasonably should have 4 12.16.2 For Actidg for the Association to bring any Claim or construction of improvementge¢i The Association must levy a Special costs of arbitration, including estimated attorney’s fees, © or any judicial action initiated by the Association. The annual operating income or reserve funds or savings to fund arbitration gviation’s annual budget or a savings account was established and 18 LIWITATION ON DAMAGES. NOTWITHSTANDING ANY PROVISION IN THIS DECLARATION OR ANY OF THE ASSOCIATION DOCUMENTS TO THE CONTRARY, IN NO EVENT SHALL DECLARANT OR THE ASSOCIATION BE LIABLE FOR SPECULATIVE, CONSEQUENTIAL, SPECIAL, INDIRECT, LOST PROFIT OR PUNITIVE DAMAGES IN CONNECTION WITH ANY CLAIM, EVEN IF DUE TO THE NEGLIGENCE OF DECLARANT OR THE ASSOCIATION.

56 12.19 HOME CONSTRUCTION CLAIMS.

12.19.1 Claims Relating to Residences and Lots. EACH OWNER (WHICH INCLUDES WITHOUT LIMITATION EACH SUBSEQUENT PURCHASER OF A LOT), BY ACCEPTING AN INTEREST IN OR TITLE TO A LOT, AGREES THAT ALL CLAIMS AND CAUSES OF ACTION THAT SUCH OWNER MAY HAVE RELATING TO THE ORIGINAL DESIGN OR CONSTRUCTION OF SUCH OWNER} LOT, OR ANY IMPROVEMENT ON SUCH OWNER’S LOT (OTHER !

MAINTENANCE AREAS ON ONE OR MORE LOTS), INCLUDIN LIMITATION, CLAIMS BASED ON ANY EXPRESS OR IMPLIED-¥ ARACIES (COLLECTIVELY, “HOME CONSTRUCTION CLAIMS”), WI EXCLUSIVELY BY THE TERMS AND CONDITIONS OF EE WARRANTY PROVIDED BY THE BUILDER O CONSTRUCTED SUCH RESIDENCE OR IMPROVE AGREEMENTS BETWEEN THE INITIAL PURCHASER O SUCH BUILDER OR CONTRACTOR, INCLUDING PROCEDURES AND AGREEMENTS CONTAINED RESOLUTION OF DISPUTES. WITHOUT.

URES TO RESOLVE HOME 4GREES TO THE FOLLOWING: CONSTRUCTION CLAIMS means each Owner (whipkin 5 mitation each subsequent purchaser of a Lot) and the

Pages 57–58

AGREEMENTS CONTAINED RESOLUTION OF DISPUTES. WITHOUT.

URES TO RESOLVE HOME 4GREES TO THE FOLLOWING: CONSTRUCTION CLAIMS means each Owner (whipkin 5 mitation each subsequent purchaser of a Lot) and the eorsiruction Claim GIVE UP THE RIGHT TO GO TO assCN or defend Home Construction Claims (EXCEPT for matters ALL CKAIMS COURT as provided below). Home Construction Claims SUTRAL ARBITRATOR and NOT by a judge or jury. The parties to im will be entitled to a FAIR HEARING, but the arbitration more limited than the rules applicable in a court. The arbitrator’s wid binding, subject to appeal as described below. Arbitrator decisions are as enkarceale asvany/court order and are subject to very limited review by a court. For more Ome Construction Arbitration Rules and related information at www.adr.org, call the American Arbitration Association at 1-800-778-7879, and consult an attorney if you so choose.

Alternatively, if the Home Construction Claim does not exceed the maximum Jurisdictional amount for a small claims court in the state where the Lot is located, a party involved in a Home Construction Claim may elect to have the claim resolved in a small claims court rather than by binding arbitration (however, any appeal of a small claims court judgment must be resolved through arbitration in accordance with this Article).

a 12.19.3 Applicable Law. The original construction and sale of each Residence was a transaction involving interstate commerce. The Federal Arbitration Act shall govern the interpretation and enforcement of this agreement to arbitrate Home Construction Claims. Even if a part of these arbitration provisions is determined to be unenforceable under applicable law, the

n the interpretation and enforcement of this agreement to arbitrate Home Construction Claims. Even if a part of these arbitration provisions is determined to be unenforceable under applicable law, the remainder shall survive, and the parties shall remain obligated to resolve Home Construction Claims through binding arbitration as set forth herein.

12.19.4 Arbitrator — American Arbitration Association. The arbitr conducted before an arbitrator appointed by the AAA. If the AAA declines t&ark Construction Claim, or if the AAA is not available, the parties will agree te arbitrator, or have a court appoint a new arbitrator who meets the qualification criterhy trained arbitrator and has at least ten years of construction arbitration experig AAA’s Home Construction Arbitration Rules. If those rules hae b&en rebeg time the arbitration claim is filed, the AAA’s rules then most appNca6 gofstruction shall apply. However, each Builder or contractor will be entitled to’ \ and perform testing as to any component claimed to have a construction de AA rule shall apply if 12.19.5 Arbitration Rules. The arbitration shall , oceed fin engineer, architect or other professional inv¢lveLA design or construction of any part of the residence, Lot or improvepféytto pt as provided above, each Home contractor and other parties involved Nesign or construction of any part of such residence or improvements on such Le s dined or consolidated with the claims or arbitration of any other party, and thez Q fOtess. A party seeking to resolve a Home Construction Claim ky filing a demand for arbitration with the AAA and serving a pdrty. The failure to initiate arbitration at any particular time shall gfe claims may be waived is by a written agreement among the parties.

Page 59

filing a demand for arbitration with the AAA and serving a pdrty. The failure to initiate arbitration at any particular time shall gfe claims may be waived is by a written agreement among the parties.

incohsistent with the Federal Arbitration Act, all provisions of this paragraph are the geleraf qualification that state laws, requirements and rules, including, but not Y ipé limitations (such as statute of limitations and statutes of repose), may affect en grOitration may be initiated and administered. The following is a brief description of the steps to initiate arbitration and the arbitration process: (i) Step | — Filing a Request. The party initiating arbitration must notify the AAA in writing of the request for arbitration under the terms of this Agreement. If a Builder or contractor initiates arbitration, such Builder or contractor will pay the AAA’s filing fee. If an Owner (including a subsequent purchaser of a Lot) initiates arbitration, such Owner will pay the lesser of 1/2 of the AAA filing fee or the amount provided by the AAA rules and the Builder or 58 contractor will pay the other 1/2 or remainder. All other AAA arbitration fees and costs shall be paid in accordance with the applicable AAA fee schedule.

(ii) Step 2 - Hearing. The arbitration will be held at a location agreed to by the parties, usually in the metropolitan area where the Property is located. The hearing typically will be scheduled by the arbitrator at a time mutually agreeable to all parties. At the hearing, the arbitrator will hear and consider evidence presented by all parties. If a party timely notifies the AAA of a request for a record of the hearing prior to the earlier of the hearing dgte or the date in

arbitrator will hear and consider evidence presented by all parties. If a party timely notifies the AAA of a request for a record of the hearing prior to the earlier of the hearing dgte or the date in the AAA’s rules, if specified, the arbitrator will preserve all evidence presented i arbitration.

Oral evidence will be preserved in a manner that it can be converted into a writte costs of the record will be paid by the party requesting the record or shared equa ang the parties requesting a copy.

(iii) Step 3 - Award. The arbitrator’s award wi i and, if requested by a party, the scope and manner of comecticg Ps consistent with this agreement, based on applicable law (extep Arbitration Act overrides and preempts state, local or other law), and and conclusions of law. If permitted by the AAA rules, g without limitation the costs and fees of any exp proceeding and any appeal. Arbitrator compet (a) Appeal.

award to the AAA by filing a written 30 days of the date of the arbitrator’ necessary to initiate the appeal. If botk appeal must include the specific itgua ¢ panel gf three arbitrators from the AAA. The appeal shall be conducted in accordange applicable rules of the AAA and this agreement as if the claim was being initially filed Wwi appeal are the issues desettbhe oticyof appeal and any issues raised by the non-appealing d (iii) no new evidence shall be accepted or considered by Award after Appeal. The award of the arbitrator shall be final, gd above. If a notice of appeal from the initial hearing is not received 30}days after the date of the initial award, then the initial award shall be final.

6 fiflal, it will be binding on and enforceable against the parties, except as

Page 60

m the initial hearing is not received 30}days after the date of the initial award, then the initial award shall be final.

6 fiflal, it will be binding on and enforceable against the parties, except as , ed br vacated according to the applicable arbitration rules and procedures or to the extenIagt ipeSnsistent with the Federal Arbitration Act or applicable state law. Either party may present the final award to any court having jurisdiction over the Home Construction Claim to enter that award as a judgment of the court.

(iv) Step 4 - Repairs. Unless designated otherwise in the award (and unless appealed), any party ordered to perform a correction to the residence or Lot will, within 10 days afier a final award, elect to either perform the correction awarded by the arbitrator or, at such party’s option, pay the Owner of the residence or Lot the reasonable cost of such correction. If such party elects to perform a correction under an award, such party will complete the correction 59 within 60 days after a final award or as may be specified by the arbitrator. If the correction cannot be completed in that time, the arbitrator must grant reasonable additional time to make the correction. If the Owner believes that the correction was not performed satisfactorily or in a timely manner, such Owner may have those issues determined in a later arbitration. If the cost of correction is not specified in the award and party ordered to perform a correction elects to pay the Owner the reasonable cost of the correction, such Owner may have the amount of that payment reviewed in a later arbitration.

[2.19.8 Expenses. Except as stated above, each party shall bear¢ fees and other expenses incurred in connection with a Home Construction Clai

Pages 60–61

he amount of that payment reviewed in a later arbitration.

[2.19.8 Expenses. Except as stated above, each party shall bear¢ fees and other expenses incurred in connection with a Home Construction Clai party to such a claim files a court action in violation of this Article and the other pa™ aquired to compel arbitration by filing a motion with the court, the court shall award 1 court costs and reasonable attorneys’ fees incurred in connection with the j LIKE ALL COVENANTS CONTAINED IN THIS DECLA EEMENTS CONTAINED IN THIS ARTICLE ARE COVENANTS R r TLE TO EACH LOT, CONCERN EACH LOT AND THE RE D OTHER IMPROVEMENTS ON SUCH LOT, AND SHAL I PON EACH SUCCESSIVE OWNER OF A LOT (WHICH INC YW, LIMITATION EACH SUBSEQUENT PURCHASER OF A QO9).

Obligations of Boe Section 13.1] and obligation of the Board Association and maintain the A jatidn shall, to the fullest extent permitted by law, indemnify, defend, and hold (ifcluding its successors, and assigns) from and against any and all losses, ginages, costs, and expenses of whatever kind or nature (including, without limitationgasgnefble attorneys’ fees and costs at all tribunal levels and whether or not suit is instituted, including those incurred in establishing the right to be indemnified, defended, and held harmless pursuant hereto), which relate to or arise out of Association management and operations, including, without limitation, improvement, maintenance, repair and operation of amenities and other portions of the Common Properties and the collection of assessments.

60 Section 13.3. No Liability for Acts of Third Party.

OWNERS AND OCCUPANTS OF LOTS, AND THEIR RESPECTIVE GUESTS AND INVITEES, ARE RESPONSIBLE FOR THEIR OWN PERSONAL SAFETY AND FOR THEIR PROPERTY WITHIN THE PROPERTY. THE ASSOCIATION MAY BUT

f Third Party.

OWNERS AND OCCUPANTS OF LOTS, AND THEIR RESPECTIVE GUESTS AND INVITEES, ARE RESPONSIBLE FOR THEIR OWN PERSONAL SAFETY AND FOR THEIR PROPERTY WITHIN THE PROPERTY. THE ASSOCIATION MAY BUT IS NOT OBLIGATED TO MAINTAIN OR SUPPORT CERTAIN ACTIVITIES WITHIN THE PROPERTY WHICH PROMOTE OR ENHANCE SAFETY OR SECURITY WITHIN THE PROPERTY. HOWEVER, THE ASSOCIATION, AN CLARANT SHALL NOT IN ANY WAY BE CONSIDERED INSURERS OR GU SAFETY OR SECURITY WITHIN THE PROPERTY, NOR SHALL TH HELD LIABLE FOR ANY LOSS OR DAMAGE BY REASON OF FAILURF DE ADEQUATE SECURITY OR INEFFECTIVENESS OF SEC UNDERTAKEN. NO REPRESENTATION OR WARRADY IS T“ANY SYSTEMS OR MEASURES, INCLUDING FIRE PROT cP AR AZ ARM, OR OTHER SECURITY MONITORING SYSTEMS, OR ANISM OR SYSTEM FOR LIMITING ACCESS TO THE ANNOT BE COMPROMISED OR CIRCUMVENTED, NOR TH¢ SYSTEMS OR MEASURES UNDERTAKEN WILL IN ALL CASEY PR 8S OR PROVIDE THE DETECTION OR PROTECTION FOBAY E SYSTEM IS DESIGNED OR INTENDED.EACH OWNER ACKNOWLKRE NDERSTANDS, AND SHALL BE RESPONSIBLE FOR INFORMING ITS#EXA ALL Q@CUPANTS OF ITS LOT F ITS COMMITTEES, AND AR A N'Y OF SECURITY OR SAFETY PRQPERTY ASSUMES ALL RISKS OF ¢ discretion and without the approval of any other party, may from time asjon to additional real property by recording in the Real Property pplemental Declaration describing the additional real property to be laration. Any such Supplemental Declaration which is executed by Owyer of such additional property, if other than Declarant, and recorded in the RCcopds of the County shall not require the consent or approval of any other Owner ie Order to be fully enforceable and effective to cause such additional real property to be incorporated herein. Nothing in this Declaration shall be construed to require Declarant to

Page 62

any other Owner ie Order to be fully enforceable and effective to cause such additional real property to be incorporated herein. Nothing in this Declaration shall be construed to require Declarant to subject additional real property to this Declaration.

61 Section 14.2 Additional Covenants and Easements.

Declarant, in its sole discretion and without the approval of any other party, may from time to time subject any portion of the Property, whether now or hereafter a part of this Declaration, to additional covenants and easements, including, without limitation, covenants obligating the Association to maintain and insure such property and authorizing the Association to recover its costs through the assessments, as described in Article X hereof. Such additional covenants and easements may be set forth either in a Supplemental Declaration subjecting suchAMgperty to this Declaration or in a separate Supplemental Declaration referencing property pre to this Declaration. Any such Supplemental Declaration may supplement, create bx or otherwise modify | the terms of this Declaration as it applies to the Proper covenants and easements to be incorporated herein.

Section 14.3 Effect of Recording hereof encumbered by such mortgage or deed of trust, but said Mgreto as to Lots acquired by foreclosure, trustee’s sale or otherwise, ation shall be enforceable by Declarant, the Association, any aggrieved Owner, and their respective legal representatives, heirs, successors, and assigns until December 31, 2050, after which time this Declaration shall extend automatically for successive 10-year periods unless at least sixty-seven percent (67%) of the then Owners have signed, within a six month period preceding the end of the initial term or any extension, an instrument which terminates this

Pages 62–63

periods unless at least sixty-seven percent (67%) of the then Owners have signed, within a six month period preceding the end of the initial term or any extension, an instrument which terminates this Declaration and such instrument is recorded in the Real Property Records of the County prior to the end of the term.

62 Section 15.3 Severability.

If any provision herein contained shall be invalid, which invalidity shall not be presumed until the same is determined by the final (ie., non-appealable) judgment or order of a court of competent jurisdiction, such invalidity shall in no way affect any other provision hereof, each of which shall remain in full force and effect.

Section 15.4 Binding Effect.

This Declaration is for the mutual benefit of, and shall be binding upetis¢ (every person acquiring any part of the Property, it being understood that the oye : aditigns, restrictions, easements, and other provisions contained in this Deelaratiof i nefit of the owner of any land except that which is a part of the Kop . , when executed, shall be filed of record in the Real Property Records o At each and every Owner or purchaser of any portion of the Property is on notices , conditions, restrictions, easements, and other provisions herein containeg Section 15.5 Notices.

to the Association as provided below. (Any addressed to the registered office of thé State for the State of Texas or to such.otWeraddress as } specified by the Association in writing to Bylaws otherwise provide, all notices, demands, is Declaration or the Bylaws shall be in writing if delivered personally or by private carrier; if sent fipient has given its prior written authorization to use éd States mail, when deposited with the U.S. Postal Service, correctly aSS postage prepaid:

Pages 63–64

delivered personally or by private carrier; if sent fipient has given its prior written authorization to use éd States mail, when deposited with the U.S. Postal Service, correctly aSS postage prepaid: vered personally or by private carrier, when actually delivered to the address of the inteNtdegLeeCipient, as evidenced by the signature of the person at such address who accepts such delivery; or (iii) if sent by facsimile or electronic mail, upon transmission, as evidenced by a printed confirmation.

63 Section 15.6 Transfer Under Deed of Trust.

Upon any transfer of Declarant’s interest in and to the Property, or any part thereof, under the terms of any deed of trust lien upon the Property, whether voluntary or involuntary, by foreclosure, deed in lieu of foreclosure or otherwise, all rights, title and interests of Declarant under this Declaration, shall be transferred to and devolve upon the party to whom the Property or any part thereof, is thereby conveyed.

Section 15.7 Notice of Transfer.

[fat any time a Lot is sold, the new Owner shall have the sole obligatiga tt the Association of the name and address of the new Owner and shall be regpoaei s charge or expense added to the account of such Owner which maygave ofhegwis ayortfed if the above information was promptly delivered to the Associate Section 15.8 No Liability for Trespass.

Whenever the Association, the Board of Directé hereunder and in connection therewith enters gorpany trespass upon such Lot.

ercises any right s shall not be liable for Section 15.9 Lien Priority.

trust or other security instrument, or through court a fe Assoctation has been made a party, shall extinguish the liens securing maintenap€e aKS OMSsesstRent which became due and payable prior to such foreclosure date,

Pages 64–65

urity instrument, or through court a fe Assoctation has been made a party, shall extinguish the liens securing maintenap€e aKS OMSsesstRent which became due and payable prior to such foreclosure date, ¢ tS any Lot from the liens securing assessments thereafter becoming e liability of any Owner personally obligated to pay maintenance (ch become due prior to such foreclosure be extinguished by any the lien for future assessments or changes be affected in any manner. Any | Arges or assessments which are extinguished pursuant to the foregoing provisidy géllocated and assessed to all Lots as a common expense.

Section 15.10 Use of Recreational F acilities and Other Common Properties.

The property made subject to this Declaration may contain common recreational facilities available for the use and enjoyment of Owners of all or any part of the Property, including Lots and residences, within the Subdivision, their families, tenants and other occupants of their property, and the guests of any such persons. EACH OWNER, BY ACCEPTANCE OF A DEED TO ANY PORTION OF THE PROPERTY MADE SUBJECT TO THIS 64 DECLARATION, ACKNOWLEDGES THAT THE USE AND ENJOYMENT OF ANY RECREATIONAL FACILITY OR ANY OTHER PORTION OF THE COMMON PROPERTIES INVOLVES RISK OF PERSONAL INJURY, DEATH, OR DAMAGE TO PROPERTY. Each Owner acknowledges, understands, and covenants to inform his or her family members, and tenants and other occupants of Owner’s property that Declarant, the Association, the Board and any committees, and Builders constructing residences and other improvements within the Property are not insurers of personal safety. EACH PERSON USING SUCH RECREATIONAL FACILITIES OR ANY OTHER PORTION OF PROPERTIES.

Each Owner agrees that Declarant, the Association, the Board an

Pages 65–66

hin the Property are not insurers of personal safety. EACH PERSON USING SUCH RECREATIONAL FACILITIES OR ANY OTHER PORTION OF PROPERTIES.

Each Owner agrees that Declarant, the Association, the Board an the Subdivision shall not be liable to any person claiming any loss q limitation, indirect, special or consequential loss or damage arising f destruction of property, trespass, loss of enjoyment, or any otjeé based upon, due to, arising from, or otherwise relating to 4 other portions of the Common Properties, includi i or in part from the negligence of Declarant, the AsgeCig EACH OWNER ACKNO REES THAT THE ABOVE RELEASE FROM LIABILITY IS " FOR, AND A CONDITION TO, THE USE AND ENJOYMENT OF EAWIONAL FACILITIES AND OTHER COMMON PROPERTIES ACKNOWLEDGMENT AND AGREEME DECLARANT AND BUILDER (103 LL, CONVEY, LEASE, AND/OR ALLOW THE USE OF LOTS WITHIN h BDIVISION. ANY VIOLATION OF THIS RELEASE AGREEMENT BY A TENANTS AND AQT e PANTS OF OWNER’S PROPERTY, OR THEIR RESPECT BE GROUNDS FOR THE SUSPENSION OR TERMI 3 SUCH PERSONS’ USE PRIVILEGES IN SUCH FACILITI liberally cOw d’to give effect to its intended purpose. All doubts regarding the meaning, significance or effect of a provision in this Declaration or other documents of the Association, shall be resolved in favor of the operation of the Association and its enforcement of the Declaration.

(Signature page follows) 65 EXECUTED to be effective as of the | ath day of Cworack , 2020.

MM Princeton 854, LLC, a Texas limited liability company By: MMM Ventures, LLC, a Texas limited liability company Its Manager By: 2M Ventures, LLC, STATE OF TEXAS § § COUNTY OF DALLAS 8 the #3 day of Jy ou. F oS, LL C, as Manager of MMM Ventures, LLC, af limited liability company on behalf of said This instrument was acknowledt

Pages 66–67

2M Ventures, LLC, STATE OF TEXAS § § COUNTY OF DALLAS 8 the #3 day of Jy ou. F oS, LL C, as Manager of MMM Ventures, LLC, af limited liability company on behalf of said This instrument was acknowledt 2020 by Mehrdad Moayedi, Manage as Manager of MM Princeton& company(ies).

\ ! if ; \ i. dA VU Ty ELLY Notary Public, “State éf Tosas : DEBBIE LACEY Notary ID #123942280 My Commission Expires August 16, 2021 66 Exhibit “A” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS Property Description LEGAL DESCRIPTION BEING a tract of land situated in the David Cherry Survey, Abstract No.

Collin County, Texas and being all of a called 853.61 acre tract of law Macavity Company, LLC recorded in Instrument No. amigisroa Records, Collin County, Texas and being more particularly descMbod My » BEGINNING at 1/2" iron rod found at the south end of a rigd Tp located at the intersection of the west right-of-way line of F.M. Highwa Wide right-of-way) and the north right-of-way line of Monte Carl 1d idth right-of-way) and being the southeast corner said 853.61 acre trg THENCE with said north right-of-way ljne ¥ 2 evard, the following courses and distances: "KHA" set for corner; North 89°37'58" West, a dietanct eet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found North 0°08'28" West, f YF 219.59 feet to a 5/8" iron rod with plastic cap stamped Beginning of a tangent curve to the right having a central of 24940.00 feet, a chord bearing and distance of North er of Block H, Villas of Monte Carlo Phase One, an addition to the City of agéording to the plat recorded in Volume Q, Page 480, Map Records, Collin THENCE departing said north right-o f-way line of Monte Carlo Boulevard and with the east lines

Pages 67–68

ne, an addition to the City of agéording to the plat recorded in Volume Q, Page 480, Map Records, Collin THENCE departing said north right-o f-way line of Monte Carlo Boulevard and with the east lines of said Villas of Monte Carlo Phase One, Villas at Monte Carlo Phase Two A, an addition to the City of Princeton according to the plat recorded in Volume 2014, Page 466 of said Map Records and Villas at Monte Carlo Phase Two B, an addition to the City of Princeton according to the plat recorded in Volume 2014, Page 468 of said Map Records, North 0°54'35" East, a distance of 2390.61 feet to a 1/2" iron rod found for the southeast corner of Lot 18, Block D, Ragon Estates, an addition to the City of Princeton according to the plat recorded in Volume J, Page 532 of said Map Records; THENCE with the east line of said Ragon Estates, North 1°01'14" East, a distance of 589.42 feet to a 5/8" iron rod found for the northeast corner of Lot 13, Block C of said Ragon Estates; THENCE with the north line of said Ragon Estates, North 89°04'12" West, a distance of 2470.27 feet to a point for the northwest corner of said Ragon Estates and being the northeast corner of Lot 31, Block 24, Park Trails - Phase 3, an addition to the City of Princeton acgOr recorded in Volume 2018, Page 702 of said Map Records; from said point a bears South 23°58'30" East, a distance of 0.31 feet; THENCE with the north line of said Park Trails - Phase 3, North 89°26' 1650.22 feet to a 1” iron pipe found for the northwest corner of ~ Phase 3 and being in the east line of a called 50.461 acre tra deed to Srilakshmi Veluri and Radhika Velivilli, recorded in Inst of said Official Public Records; THENCE with said east line of Tract 1, North 0°49'42" } iron pipe found for the northeast corner of said Dy I;

rilakshmi Veluri and Radhika Velivilli, recorded in Inst of said Official Public Records; THENCE with said east line of Tract 1, North 0°49'42" } iron pipe found for the northeast corner of said Dy I; THENCE with the north line of said Tract vé distance of 1154.37 feet to a 1/2" iron rod found for the northwes and being the southeast corner of a called 1.251 acre tract of land describé y wa saidhdeedto Srilakshmi Veluri and Radhika Velivilli; act, “f called 22.474 acre tract of land described in deed to Hari Prasad Myneni ent No. 20150120000064440 of said Official Public Records and a called #0 d described in deed to Harold Brown Bixler, recorded in Instrument No. 2¢ 290 of said Official Public Records, North 0°18'16" East, a distance of 1328 point fof the westernmost northwest corner of said 853.6] acre tract and being in th ie OF pf 11.058 acre tract described in deed to Valerie L. Bixler 7 ’ 062980 of said Official Public Records from which a s Norty 33311'19" West, a distance of 0.44 feet: ge of the 11.058 acre tract, South 89°02'00" East, a distance of 164.68 found for the southeast corner of said 11.058 acre tract and being the ot 3, Free Rein # 1 Addition, an addition to the City of Princeton according ig Volume 2010, Page 69 of said Map Records: P e south line of said Lot 3, South 88°57'40" East, a distance of 560.77 feet to a PK nail found for the southeast corner of said Lot 3 and being the southwest corner of a called 306.81 acre tract described in deed to Hasan Pirkul and Tulin Pirkul, Gurgun Muharrem and Semahat Muharrem, Kemal Altinkemer and Chery L. Altinkemer and Hakan Aytac and Alper Aytac recorded in Volume 5218, Page 3630 of the Land Records, Collin County, Texas;

Page 69

lin Pirkul, Gurgun Muharrem and Semahat Muharrem, Kemal Altinkemer and Chery L. Altinkemer and Hakan Aytac and Alper Aytac recorded in Volume 5218, Page 3630 of the Land Records, Collin County, Texas; THENCE with the south line of said 306.81 acre tract, the following courses and distances: Exhibit A — Page 2 North 89°33'50" East, a distance of 551.89 feet to a 5/8" iron rod found for corner; South 0°10'50" West, a distance of 103.30 feet to a 3/4" iron rod found for corner; South 89°34'09" East, a distance of 321.08 feet to a 5/8" iron rod with plastic cap stamped " Sparr Surveys " found for corner; North 89°51'02" East, a distance of 1206.51 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found for corner; South 88°26'10" East, a distance of 1494.09 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found for corner; South 89°52'10" East, a distance of 343.52 feet to a 5/8" iron rod with plas "Sparr Surveys" found for corner; corner of said 306.81 acre tract; THENCE with the east line of said 306.81 acre tract, North 0°4 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" of said 853.61 acre tract; THENCE departing said east line of the 306.81 < County Road No. 408, the following courses apt "KHA" set for corner; South 89°11'09" East, a distancé "Woolpert Inc." found for corneg "Sparr Surveys” found South 59°11'14" beginning of a non-tangent curve to the right having a central 6955.00 feet, a chord bearing and distance of South 65°48'44" easterly direction, with said curve to the left, an arc distance of 465.63 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys” found for corner; South 89°03'32" East, a distance of 58.08 feet to a 5/8" iron rod with plastic cap stamped

Pages 69–70

an arc distance of 465.63 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys” found for corner; South 89°03'32" East, a distance of 58.08 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found for corner at the intersection of said south right-of-way line of County Road No. 408 with said west right-of-way line of F.M. Highway No. 75; Exhibit A — Page 3 THENCE with said west right-of-way line of F.M. Highway No. 75, the following courses and distances: South 10°02'44" East, a distance of 132.84 feet to a 5/8" iron rod found at the beginning of a non-tangent curve to the right having a central angle of 3°21'26", a radius of 1864.86 feet, a chord bearing and distance of South 6°55'03" East, 109.26 feet; froptSe iron rod with plastic cap stamped "Sparr Surveys" found bears South’ distance of 1.46 feet, a 1” iron rod found bears North 34°41'43" West, a¥ feet and a wooden highway monument found bears North 3°09'1 1" Egseeadi feet; In a southeasterly direction, with said curve to the right, ag arc dif M7 feet toa Wooden Highway Monument Found for corner from | North 29°57'26" West, a distance of 1.59 feet and a 5/ 2°33'17" East, a distance of 1.20 feet; of 5774.58 feet, a chord bearing and digg In a southeasterly direction, with saigh Wooden Highway Monument fou which a Wooden Highway Ma feet; af line of F.M. Highway No. 75 and with the north line est, a distance of 189.45 feet to a 1/2" iron rod found yon yod found in said 3 west right- <oftemey line of F.M. Highway No. 75 for the southdast coMer gfsaid 1.000 acre tract; THENCE with said west right-of-way line of F.M. Highway No. 75, South 9°11'17" East, a distance of 550.57 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found for corner

Pages 70–71

acre tract; THENCE with said west right-of-way line of F.M. Highway No. 75, South 9°11'17" East, a distance of 550.57 feet to a 5/8" iron rod with plastic cap stamped "Sparr Surveys" found for corner at the north end of said right-of-way corner clip: THENCE with said right-of-way corner clip, South 40°13'14" West, a distance of 38.73 feet to the POINT OF BEGINNING and containing a GROSS area of 853.54 acres of land.

Exhibit A — Page 4 SAVE AND EXCEPT the following 1.509 acre tract of land described in Dedication Deed to the City of Princeton, Texas recorded in Instrument No. 20190305000230730, Official Public Records of Collin County, Texas: Being a tract of land, situated in the David Cherry Survey, Abstract No. 166, in thg Princeton, Collin County, Texas, and being a part of that called 853.61 acre tract described by deed as recorded under document No. 20160627000808950, Official F Records, Collin County, Texas (O.P.R.C.C.T.), said tract being more particularly desc follows: ity of () > BEGINNING at a 1/2” iron rod found at the southwesterly end @f af northwesterly intersection of Longneck Road and Monte Carlo Botilew the most southerly southeast corner of said 853.61 acre tract; THENCE along the northerly monumented line of Monte courses and distance: South 85°22’51” West, a distance of 2 “SPARR” found for an angle poiyts North 89°37°50” West, a dista stamped “SPARR” found for a North 00°00°08” East, along th ssid} tiact, the following courses and distances: Na, Netance 9f625.00" to a 1/2” iron rod with a yellow plastic cap 84” schfor an angle point; » distance of 50.53” to a 1/2” iron rod with a yellow plastic cap seMfor corner; a distance of 1121.30’ to a 1/2” iron rod with a yellow plastic cap B26"

Pages 71–73

yellow plastic cap 84” schfor an angle point; » distance of 50.53” to a 1/2” iron rod with a yellow plastic cap seMfor corner; a distance of 1121.30’ to a 1/2” iron rod with a yellow plastic cap B26" THENCE South40°22°32” West, along said corner clip, a distance of 6.93’ to the POINT OF aiid containing 65,716 square feet or 1.509 acres of land, more or less resulting in a NET area of 852.03 acres of land.

SAVE AND EXCEPT: The 3.006 acre tract or parcel described on Exhibit “A-1” attached hereto; and SAVE AND EXCEPT: The 6.314 acre tract or parcel of land described on Exhibit “A-3” attached hereto.

Exhibit A — Page 5 Exhibit “A-1” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS Fire Station Site Description FIELD NOTES: BEING a 3.006 acres tract or parcel of land situated in the David Cherry Survey’ 166, in the City of Princeton, Collin County, Texas and being a part of an 853.6 land described in Special Warranty Deed to Macavity Company, LLC, as Clerk's File No. 20160627000808950 in the Deed Records of Cgjlin Coy more particularly described as follows: é> COMMENCING at a 5/8 inch iron rod found for the Northeast cé dedication as described in a Deed to the City of Princeton, as te THENCE North 90 degrees 00 minutes 00 ge of Mote Carlo Boulevard a distance of 385¢ BEGINNING; THENCE North 90 degrees 00 min corner, corner; 0 gégrees 00 minute 00 second East a distance of 415.73 feet to a point for corner; 2 South 00 degree 00 minutes 00 second East a distance of 319.56 feet to the POINT OF BEGINNING, and containing 130,947.81 square feet or 3.006 acres of land more or less.

Exhibit “A-2” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS Multi-Family Site Description FIELD NOTES:

Pages 73–74

ining 130,947.81 square feet or 3.006 acres of land more or less.

Exhibit “A-2” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS Multi-Family Site Description FIELD NOTES: BEING a 20.162 acres tract or parcel of land situated in the David Cherry Survey, 166, in the City of Princeton, Collin County, Texas and being a part of an 853.61 g Clerk's File No. 20160627000808950 in the Deed Records of Collin Count more particularly describe as follows: > BEGINNING at a 5/8 inch iron rod found for the Northeast corner o as described in a Deed to the City of Princeton, as recorded in Cun comer; North 00 degree 52 min corner; South 25 degrees 37 minutes 53 seconds East a distance of 305.11 feet to a point for corner; THENCE North 90 degrees 00 minute 00 second West a distance of 417.04 fect to the POINT OF BEGINNING, and containing 878,259.86 square feet or 20.162 acres of land more or less.

Exhibit “A-3” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS Qutparcel Site Description FIELD NOTES: BEING a 6.314 acres tract or parcel of land situated in the David Cherry Suprey 166, in the City of Princeton, Collin County, Texas and being a part of a land described in Special Warranty Deed to Macavity CompanyAXLC, af re Clerk's File No. 20160627000808950 in the Deed Records ree more particularly described as follows: BEGINNING at a 5/8 inch iron rod found at the beginning 94 right-of-way of Monte Carlo Boulevard (a variable width : % chord bears North 89 degrees 43 minutes 13 seconds West following courses and distances; North 00 degree 54 minutes | corner; North 77 degrees 28 corner; M6 degrees 00 minutes 00 seconds West a distance of 45.01 feet to a point for

Pages 74–75

minutes 13 seconds West following courses and distances; North 00 degree 54 minutes | corner; North 77 degrees 28 corner; M6 degrees 00 minutes 00 seconds West a distance of 45.01 feet to a point for South 00 degrees 52 minutes 00 seconds East a distance of 70.01 feet to a point for comer, said point being in the Northerly right-of-way of said Monte Carlo Boulevard: THENCE North 90 degrees 00 minutes 00 second West, along said Northerly right-of-way of Monte Carlo boulevard a distance of 213.64 feet to the POINT OF BEGINNIN G, and containing 275,047.52 square feet or 6.314 acres of land more or less.

Exhibit “B” TO DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WHITEWING TRAILS DECLARANT REPRESENTATIONS & RESERVATIO} GENERAL PROVISIONS, B.1.1. Introduction. Declarant intends the Declaration to be peyp that provisions pertaining to the initial development, construct Property will become obsolete when Declarant's role is compltitg* of the Declaration, who may be frustrated by then-obsolete terrf gmpiling the Declarant-related provisions in this Exhibit. Owners are p roughout the restrictions, rules, regulations, policies and any other provjsios Association shall be interpreted so as to be in the favor of the Decadal the Bu is is necessary to ensure A igi . fs decision on any matter Member.

withstanding other provisions of the % may be construed to, nor may any mortgagee, other Owner, or the Associ¥ oxent Ow interfere with the rights contained in this Exhibit which Declarant hereby excl dx unto itself and its successors and assigns. In case of conflict between this EXhi Document, this Exhibit controls. This Exhibit may not be amended without thelp ittg¢n consent of Declarant. To the extent any proposed

Pages 75–76

its successors and assigns. In case of conflict between this EXhi Document, this Exhibit controls. This Exhibit may not be amended without thelp ittg¢n consent of Declarant. To the extent any proposed amendment is for the purp eitbtr gmending the provisions of this Declaration or the Association's Agreergénts peWatsj RE use, operation, maintenance and/or supervision of any ais, systems, Common Properties, private Streets or grounds that AgsoQation, prior written consent of the City may be required. The ais Exh¥5it must be construed liberally to give effect to Declarant's intent in the Property.

facilities, structuresfi are the ré6peansi S e of Development and Declarant Control Periods. This Exhibit gives Jaraitcertaingights during the Development Period and the Declarant Control Period to ensure picte‘aadordgrly build out and sellout of the Property, which is ultimately for the benefit and profegtion g#Owners and mortgagees. Declarant may not use its control of the Association and the Property for an advantage over the Owners by way of retention of any residual rights or interests in the Association or through the creation of any contractual agreements which the Association may not terminate without cause with ninety days' notice; Notwithstanding, certain rights and protections for the Declarant and Builders is deemed reasonable and necessary to ensure a complete and orderly buildout.

B.1.4. Definitions. As used in this Exhibit and elsewhere in the Documents, the following words and phrases, when capitalized, have the following specified meanings: "Builder" means a person or entity which purchases, or contracts to purchase, a Lot from Declarant or from a Builder for the purpose of constructing a

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pitalized, have the following specified meanings: "Builder" means a person or entity which purchases, or contracts to purchase, a Lot from Declarant or from a Builder for the purpose of constructing a residence for resale or under contract to an Owner other than Declarant. As used in this Declaration, Builder does not refer to Declarant or to any home building or home marketing company that is an affiliate of Declarant.

"Declarant Control Period" means that period of tim Declarant controls the operation of this Association. The duration of period not to exceed the earlier of: (i) the date on which Deg any portion of the Property, or (ii) the date recordation of this Declaration in the Official which the Association is located, or (iii) the date of r8 Records of the County in which the Associatione B.1.5. Builders. Declarant, throug Lots in connection with the sale of the Lots Mes aoLmey, without notice, sell some occupied.

B.2. DECLARANT CONTROL ATIONS.

Declarant reserves the @ of this Declaration, at least one-third (1/3) of the directors on non-Declarant Owners.

B.2.3. Budget Funding. During the Declarant Control Period only, Declarant may, in its sole discretion, provide amounts in excess of the funds raised by the regular assessments in order to maintain the Common Properties within reasonable standards excluding non-recurring expenses which the Declarant shall have no obligation to fund. Any such advances made by Declarant during the Declarant Period shall be a debt of the Association to the advancing party. The Association shall, upon written request of the Declarant, cooperate fully in the repayment of sums loaned to the Association by the Declarant. Notwithstanding the foregoing, Declarant, in its sole Exhibit B — Page 2

ll, upon written request of the Declarant, cooperate fully in the repayment of sums loaned to the Association by the Declarant. Notwithstanding the foregoing, Declarant, in its sole Exhibit B — Page 2 discretion, may cause the Association to borrow any deficiency amount from a lending institution at the then prevailing rate for such a loan. Declarant is not responsible for funding the Reserve Fund and may, at its sole discretion, require the Association to use Reserve Funds when available to pay operating expenses prior to the Declarant funding any deficiency.

B.2.4. Declarant Assessments. During the Declarant Control Period, any real property owned by Declarant is not subject to Assessments by the Association.

B.2.5. Builder Obligations. During the Declarant Control Period only, Mechgrant has the right but not the duty (1) to reduce or waive the Assessment obligation of a BuNd exempt a Builder from any or all liabilities for transfer-related fees charged by the AS MON or its manager, provided the agreement is in writing.

B.2.6. Commencement of Assessments. During the initighdevelof Declarant may elect to postpone the Association's initial levy certain number of Lots are sold. During the Declarant Control Pérjé B.2.7. Expenses of Declarant. Expenses related to Property will be paid by Declarant and are not expen i order to establish and produce a budget expectations during the build out pe Amendment, Assessment increases 0; Period. .

p no right of veto regarding the Declarant Control B.2.9. Or .

the Declarant Control Period forfsd0ner organizational meeting of the Mle fe e B&ard the Owners, three directo Declarant's option, Declarant will call an Association for the purpose of electing, by vote of transition from a Declarant to Homeowner Board

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al meeting of the Mle fe e B&ard the Owners, three directo Declarant's option, Declarant will call an Association for the purpose of electing, by vote of transition from a Declarant to Homeowner Board (10) days é { )) days before the meeting. For the organizational meeting, Owners often percext ( Mthe Lots constitute a quorum. The directors elected at the organ l erve staggered terms with the candidates obtaining the highest nyt Onger term and the remaining candidates serving the shorter term as foNows:? | Board one (1) Member shall serve a three-year term, one (1) Member shall Servey rear Je and one (1) Member shall serve a one-year term. At the first annual meetingNo be“tHeld by the Members after Declarant Control ends the Board shall have the ri ght, but not thesebligefion, to increase from a three to a five-person Board. The Board shall upon majority vote have the right to increase the Board; five being the maximum number of Directors allowed. A five-person Board: Two (2) Members shall serve a three-year term, two (2) Members shall serve a two-year term, and one (1) Member shall serve a one-year term.

At this transition meeting, the Declarant will transfer control of all utilities, if applicable, related to the Common Properties provide information to the Association, if not already done so, relating to the total costs to date related to the operation and maintenance of the Common Properties.

Exhibit B — Page 3 B.3. DEVELOPMENT PERIOD RESERVATIONS. Declarant reserves the following easements and rights, exercisable at Declarant's sole discretion, at any time during the Development Period: B.3.1. Builder Limitations. Declarant may require its approval (which may not be unreasonably withheld) of all documents and materials used by a Builder in connection with the

the Development Period: B.3.1. Builder Limitations. Declarant may require its approval (which may not be unreasonably withheld) of all documents and materials used by a Builder in connection with the development and sale of Lots, including without limitation promotional materials; deed restrictions; forms for deeds, Lot sales, and Lot closings. With Declarant's priopwritten approval, a Builder may use a sales office or model in the Property to market reside Rots, or other products located outside the Property.

B.3.3. Architectural Control. During the Development Period, Dec]a right to serve as the Architectural Reviewer pursuant to the Declaration.

to time, but is not obligated to, delegate all or a portion of i Reviewer under the Declaration and this Exhibit to (1) a c engineers, or other persons who may or may not be Members o Declarant. Any such delegation is at all times subject to the yni revoke such delegation at any time and reassume jurisdictiog gnt my I 1 rig he Arbditectural kgf chitects, soGiatierf cfosen by the a to be inappropriate or inadvisable for any reason. Declarant alshg) gh# to exercise architectural committee appointed by the Association o yattic committee is named) may involve itself with the approval of Byffa ‘ an plans and/or construction of new residences and related improvements6 | i express written permission of the Declarant.

B.3.4. Amendment. nt Period, Declarant may amend _ this Declaration and the other Doc i Bylaws, without consent of the Board, other 5 comply with the requirements of an underwriting lender.

(vii) To resolve conflicts, clarify ambiguities, and to correct misstatements, errors, or omissions in the Documents.

(viii) To enable any reputable title insurance company to issue title insurance coverage on the Lots.

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nflicts, clarify ambiguities, and to correct misstatements, errors, or omissions in the Documents.

(viii) To enable any reputable title insurance company to issue title insurance coverage on the Lots.

Exhibit B — Page 4 (ix) To enable an institutional or governmental lender to make or purchase mortgage loans on the Lots.

(x) To change the name or entity of Declarant.

(xi) | To change the name of the addition in which the Property is located.

(xii) To change the name of the Association.

(xiii) For any other purpose, provided the amendment has no material ad¥ any right of any Owner.

B.3.5. Completion. During the Development Period, complete or ome ScTpLEREUIEHS indicated on the Plat: (2) the rig and marketing of the Property, including, without li temporary fencing, portable toilets, storage areas, gClarant will promptly repair, at its sole expense, any damage resulting fig this right. By way of illustration but not codes and ordinances. i tiomNog of be construed to create a duty for Declarant or the Association.

g, identifying, and marketing the Property and/or Declarant's residences, t other products located outside the Property. Declarant reserves an Property. afft also reserves the right to sponsor marketing events — such as open houses, MLS tours, and broker's parties — at the Property to promote the sale of Lots. During the Development Period, Declarant also reserves (1) the right to permit Builders to place signs and promotional materials on the Property and (2) the right to exempt Builders from the sign restriction in this Declaration. AT NO TIME AND IN NO EVENT SHALL OWNERS INTERFERE WITH OR TAKE ANY ACTION THAT WOULD PROHIBIT THE DECLARANT AND BUILDERS

Pages 79–80

(2) the right to exempt Builders from the sign restriction in this Declaration. AT NO TIME AND IN NO EVENT SHALL OWNERS INTERFERE WITH OR TAKE ANY ACTION THAT WOULD PROHIBIT THE DECLARANT AND BUILDERS FROM PERFORMING THE SMOOTH AND ORDERLY CONSTRUCTION OF LOTS AND THE ORDERLY BUILDOUT OF THE SUBDIVISION. OWNERS AND BOARD MEMBERS MAY NOT ATTEMPT TO AMEND, MODIFY, OR RESCIND DAYS AND TIMES OF Exhibit B — Page 5 SHOWINGS, CONTRACTOR ACTIVITY ASSOCIATED WITH CONSTRUCTION OF THE DEVELOPMENT OR LOTS NOR SHALL THE BOARD OR ANY OWNER HAVE THE RIGHT TO LIMIT OPEN HOUSES OR OTHER SUCH SPECIAL EVENTS PROMOTING SALES. ANY SUCH ACTION IS SUBJECT TO SUIT BY THE DECLARANT OR A BUILDER.

B.3.8. Offices. During the Development Period, Declarant reserves for itself the right to use residences owned or leased by Declarant as models, storage areas, andwoffices for the marketing, management, maintenance, customer service, construction, and lea \ and/or Declarant's developments or other products located outside the Property. WAlsO\Declarant reserves for itself the easement and right to make structural changes and alterations Sy antto Lots adapt them to the uses permitted herein.

B.3.9. Access. During the Development Period, Decker aw cdsg apd right of ingress and egress in and through the Property for purposes 5 af. Anaintaining, managing, and marketing the Property and the Property Subj ope(as hereinafter defined), and for discharging Declarant's obligations under g right to provide a reasonable means of access & homé ugh any existing or future gate that restricts vehicular access to th ith the active marketing B.3.10. Utility Easements. Dring Period, Declarant may grant permits,

a reasonable means of access & homé ugh any existing or future gate that restricts vehicular access to th ith the active marketing B.3.10. Utility Easements. Dring Period, Declarant may grant permits, licenses, and easements over, in, on, pe Property for utilities, roads, and other c more efficiently or economicflly, 2 WitieSér other improvements. Utilities may include, but are not limited to, waterfse pmoval, electricity, gas, telephone, television, cable, internet service, and segurty. \ To‘exegelsedthis right as to land that is not a Common Property or aydatory assessment by the Association until the date Declarant other than Declarant. If Declarant owns a Lot on the expiration or velgppfent Period, from that day forward Declarant is liable for Assessments transfers. During the Development Period, any transfer of an interest in the Declarant is not subject to any transfer-related provision in the Documents, including “WwitHf6ut limitation on an obligation for transfer or Resale Certificate fees, and the transfer-related provisions of this Declaration. The application of this provision includes without limitation Declarant's Lot take-downs, Declarant's sale of Lots to Builders, and Declarant's sale of Lots to homebuyers.

Exhibit B — Page 6