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DRAFT DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR TEJAS LAKES SUBDIVISION

STATE OF TEXAS COUNTY OF FORT BEND

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KNOW ALL BY THESE PRESENT:

THAT this Declaration is made on this ______ day of ______________, 2007 by Tejas Lakes Development, LP, a Texas limited partnership (hereinafter called "Declarant"), who declares and publishes as follows: WHEREAS, Declarant is the present owner of that certain real property comprised of 164.74 acres of land being a portion of a call 74.847 Acre Tract (F.B.C.C.F. No 2003146225) A Call 43.78 Acre Tract (F.B.C.C.F. No. 9867850) and a call 20.334 Acre Tract (Tract Two; F.B.C.C.F. No. 2003146225) Being in the H. & T.C. Railroad Company Survey, Section No.70, H. Forester Survey, Abstract No. 573 and in the H. T.&C Railroad Company Survey, Section No. 29, Abstract No. 220, Fort Bend County, Texas, consisting of _____________(___) lots, ___ (___) blocks, ___ (___) reserves, and associated roadways and easements, as depicted on the map or plat of Tejas Lakes, recorded under Recorded Plat Number_______ of the Plat Records of Fort Bend County, Texas (collectively referred to herein as the "Development"), which are more fully described in the attached Exhibit "A"; WHEREAS, it is the intent of Declarant to establish a uniform plan for the maintenance and the general appearance of the Development to protect the value and enhance the desirability of the Development for the benefit of both present and future owners of property in the Development, and, accordingly, to establish certain design and construction guidelines and standards, to create and establish the Tejas Lakes Home Owners Association, and to delegate

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DRAFT thereto the powers to administer and enforce the covenants, restrictions, easements, charges and liens set forth herein. NOW, THEREFORE, Declarant hereby declares that the Development, and the individual Lots that comprise the Development, are held, and shall hereafter be conveyed subject to the covenants, restrictions, easements, charges and liens (sometimes referred collectively as "covenants and restrictions" or "deed restrictions") as set forth, and further, that the Development is hereby established within the jurisdiction of the Tejas Lakes Home Owners Association. These covenants and restrictions shall run with the land compromising the

Development and each specific lot and shall be binding upon all parties having or acquiring any right, title or interest in the Development or any part thereof, their heirs, successors, and assigns, and shall inure to the benefit of each owner thereof. ARTICLE I DEFINITIONS The following words, when used in this Declaration, shall have the meanings specified below: SECTION 1. "ASSOCIATION" shall refer to the Tejas Lakes Home Owners Association, a Texas non-profit corporation, its successors and assigns. SECTION 2. "BUILDER" shall refer to any person or entity undertaking the construction of a residence on a Lot. All Builders must be pre-approved by the Association. SECTION 3. "CONSTRUCTION ACTIVITIES" shall refer to any and all activity or work to alter, construct, build, erect, remodel, renovate, or improve any Lot or any improvements on any Lot. SECTION 4. "COMMON PROPERTY" shall refer to any and all Reserves as depicted 2 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT on the Plat. SECTION 5. "CORNER LOT" shall refer to a Lot which abuts on more than one street. SECTION 6. "DECLARANT" shall refer to Tejas Lakes Development, L.P., a Texas limited partnership, and its successors and assigns. SECTION 7. "DECLARATION" refers to this Declaration of Covenants, Conditions and Restrictions. SECTION 8. "DEVELOPMENT" shall refer to the Lots as a whole that are described in the attached Exhibit "A" Section and any additional lands that may subsequently be annexed by the Association. SECTION 9. "FRONTAGE AREA" shall refer to that portion of Lots in the Development which lies adjacent to the streets and forward of all back and side yard fencing. SECTION 10. "IMPROVEMENTS" shall mean and refer to any buildings, structures, underground installations, slope alterations, lights, driveways, utility facilities and lines, parking areas, fences, satellite dishes, rooftop installations, screening walls and barriers, retaining walls, stairs, decks, windbreaks, landscaping, and all the structures or improvements of every type and kind. SECTION 11. "INITIAL PERIOD" shall mean that period of time during which construction of a Residence on any of the Lots is occurring or contemplated and shall cease upon the earlier of the completion of all such construction or the conveyance of all Lots to Owners other than Declarant. SECTION 12. "LANDSCAPING ACTIVITIES" shall mean seeding, sodding or the planting or removal of grass, flowers, vegetation, trees and shrubs, the construction of beds, berms, drainage or irrigation systems, fences, screening devices, or other general landscaping 3 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT activities SECTION 13. "LOT" shall refer to any of the numbered lots described in Exhibit "A" that comprise the Development. SECTION 14. "MAINTENANCE FUND" shall refer to the funds accumulated from the payment and the collection of annual assessments and used for the maintenance, upkeep and preservation of landscaping located on the Common Property and such other expenditures as may be permitted by the Association and this Declaration. SECTION 15. "MEMBER" shall refer to every person or entity which holds a membership in the Association. SECTION 16. "OWNER" shall refer to the owner, whether one or more persons or entities, of the fee simple title to any Lot, but shall not refer to any person or entity holding a lien, easement, mineral interest, or royalty interest burdening the title thereto. SECTION 17. "PLAT" shall refer to the final plat of Tejas Lake Section 1, filed for record in the map records of Fort Bend County, Texas. SECTION 18. "RESIDENCE" shall mean and refer to those Improvements or structures placed on any Lot with the intention that such be occupied by any person and includes any garage and all appurtenances. SECTION 19. "STREET" shall refer to any street, drive, cul-de-sac, boulevard, road, alley, lane, avenue, or any thoroughfare as shown on the Plats. SECTION 20. "EQUESTRIAN TRAILS" shall mean and refer to the portion of each Lot which is within twenty-five (25) feet of the right-of-way of an internal Street within the Development over which an easement is herein created for the benefit of the Association for Equestrian purposes. Additionally, any easement designated on the PLAT as a Park or common 4 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT area is herein designated as an "Equestrian Trail". ARTICLE II TEJAS LAKES HOME OWNER'S ASSOCIATION SECTION 1. ORGANIZATION. Declarant has caused the Tejas Lakes Home Owners Association (the "Association") to be organized and formed as a non-profit corporation under the laws of the State of Texas. The principal purposes of the Association are (a) the collection, expenditure, and management of the Maintenance Fund, (b) interpretation and enforcement of the Restrictions and this Declaration, (c) development and enforcement of architectural controls and guidelines governing the design and construction of all Residences within the Development, (d) development and enforcement of guidelines and criteria for the design and construction of landscaping located in the Frontage Area of all Lots and on the Common Property within the Development, and (e) the maintenance and preservation of the Common Property. SECTION 2. IMPLIED AUTHORITY. The Association shall have all rights, privileges, and authority reasonably implied from the existence of any right, privilege, or authority granted to it in this Declaration or the Bylaws of the Association or otherwise reasonably necessary to effectuate any such right, privilege, or authority. SECTION 3. LIABILITY LIMITATIONS. No Member, Director or officer of the

Association shall be personally liable for debts contracted for or otherwise incurred by the Association or for any torts committed by or on behalf of the Association or for a tort of another Member, Director, or officer, whether such person was acting on behalf of the Association or otherwise. Neither the Declarant, the Association, its Directors, officers, agents, or employees shall be liable for any incidental or consequential damages for failure to inspect any premises, Improvements or portion thereof or for failure to repair or maintain the same. The Declarant, the 5 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT Association or any other person, firm or corporation obligated to make such repairs or maintenance shall not be liable for any personal injury or other incidental or consequential damages occasioned by any act or omission in the repair or maintenance of any premises, Improvements or portion thereof, including, without limitation, any negligent act or omission of the Declarant, the Association or any of its agents, employees or contractors. SECTION 4. BYLAWS. The Association shall adopt Bylaws to establish the rules and regulations governing the organization and procedures of the Association's activities and meetings. SECTION 5. MEMBERSHIP IN THE ASSOCIATION. Every Owner of a Lot shall be a member of the Association. Lot ownership is the sole requirement for membership and no Owner shall have more than one membership for each Lot owned. Membership shall be

appurtenant to and may not be separated from ownership of the Lot (which is subject to assessment by the Association) and shall automatically pass with the title to the Lot. SECTION 6. VOTING. The Association's Members shall be the Owners of lots in the Development. Declarant shall be the sole Member entitled to vote during the Initial Period. Upon the expiration of the Initial Period, each Member shall be entitled to vote, however, there shall be only one vote for each Lot. When more than one individual or entity holds an ownership interest in a Lot, all such persons shall be Members, but in no event shall they be entitled to cast more than one vote in total for each Lot owned. SECTION 7. INSPECTION OF ASSOCIATION'S BOOKS. Each Member shall have the right to inspect the books and records of the Association at the Association's office during reasonable office hours for any proper purpose upon giving the President of the Association five (5) days prior written notice stating the purpose of the inspection. The Member requesting such 6 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT inspection shall bear all costs and expenses for such inspection. To protect the Association's records from damage, loss, theft, or vandalism, copies of any records shall be made solely by the Association. The Board shall establish a reasonable charge for such copying services which charge shall be paid in advance by any Member requesting copies of the Associations' records. SECTION 8. BOARD OF DIRECTORS AND DESIGNATED REPRESENTATIVES. The Association shall act through a Board of Directors (the "Board"), which shall manage the affairs of the Association as specified in the By-Laws of the Association. During the Initial Period, the Board shall be the Declarant. Upon the expiration of the Initial Period, the Board's actions shall be determined by a majority vote; however, the Board may designate a representative to act for it and to perform any function the Board as a whole could perform. SECTION 9 COMPENSATION OF BOARD. No person serving on the Board shall be entitled to compensation for services performed, however, the Board may employ one or more architects, engineers, attorneys, or other consultants to assist the Board in carrying out its duties hereunder, and the Association shall pay such consultants for services, rendered to the Board. Except as to liability by reason of gross negligence or intentionally malicious acts, no member of the Board shall be personally liable for any actions committed in the scope of services performed as a member of the Board. Notwithstanding any express or implied term or provision of this Declaration, neither Declarant nor the Board shall ever be obligated to enforce any provision herein, and failure to do so shall never be a ground for any liability for or recovery of any damages from the Declarant, the Association, or the Board or any member thereof. SECTION 10. POWERS OF THE BOARD. The Board shall have the right to specify architectural and aesthetic requirements for all construction on any Lot, as well as the types of vegetation that will be propagated, the location of plantings, the location, height, and extent of 7 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT fences, walls, or other screening devices, the orientation and compatibility of landscaping in the Frontage Areas and on all Common Property in the Development. The Board shall have full power and authority to reject any plans and specifications that do not meet its minimum requirements as established by these Restrictions and the Guidelines or that might not be compatible with the overall character and aesthetics of existing landscaping and improvements located within the Development. SECTION 11. GUIDELINES. The Board shall adopt written guidelines governing all Landscaping Activities located within the Frontage Areas and the Common Property (the "Landscape Design Guidelines"). The Board may also adopt written guidelines governing the design, appearance, and construction of Residences and their appurtenant structures (the "Residential Design Guidelines") to supplement and clarify these Restrictions and the General Guidelines set forth herein. The Landscape Design Guidelines and the Residential Design Guidelines must be in writing and specify in reasonable detail the aesthetic and architectural parameters governing the construction of Improvements and Landscaping. Collectively, all guidelines may be referred to herein as "Guidelines." SECTION 12. ARCHITECTURAL REVIEW COMMITTEE. The Board shall form an Architectural Review Committee (the "ARC"). During the Initial Period, the ARC shall be the Declarant. After the expiration of the Initial Period, the Board may designate such individuals as it may deem appropriate to serve on the ARC, including the members of the Board, in whole or in part. The ARC shall review and approve plans and specifications concerning Construction and Landscaping Activities for compliance with this Declaration and the Guidelines. SECTION 12. VARIANCES. The Board shall have the right, exercisable at its

discretion, to grant variances to its published requirements in specific instances where the Board 8 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT in good faith deems that such variance does not adversely affect the architectural and environmental integrity of the Lots or the common scheme of the Development. All variances shall be in writing, addressed to the Owner requesting the variance, describing the applicable requirement to which the variance is granted, listing conditions imposed on the granted variance and listing specific reasons for granting of the variance. Failure by the Board to respond within thirty-one (31) days to a request for a variance shall operate as a denial of the variance.

ARTICLE III ARCHITECTURAL CONTROL AND GENERAL GUIDELINES SECTION 1. CREATION, PURPOSE AND SCOPE. These General Guidelines are designed and intended to a establish a comprehensive scheme for architectural and land use controls within the Development, to maintain the architectural integrity of improvements constructed on Lots and the quality of workmanship and materials used in the construction of such improvements in conformance with these Restrictions. The controls imposed by these Restrictions are to promote the health, safety and welfare of the residents of the Development and to protect and maintain certain amenities and property values within the Development. SECTION 2. PRE APPROVED BUILDER LIST . No Builder other than those

approved by the ARC may be utilized to construct a residence on a Lot. The ARC shall maintain list of approved builders. In addition to the builder requirements set forth in the APPLICATION TO BE AN APPROVED BUILDER, all Approved Builders will be required to purchase a minimum of 2 lots for the purpose of constructing homes. Lots must be purchased prior to commencing any construction. The ARC is not required to approve any builder.

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DRAFT SECTION 3. PRIOR APPROVAL OF CONSTRUCTION REQUIRED.

No

Construction Activities shall occur on any Lot, and no material alteration of existing Residences or their appurtenances shall be made, until the plans and specifications have been submitted to and approved in writing by the ARC as to conformity and harmony of the external design and location in relation to surrounding residences, structures, and topography, and compliance with this Declaration and the Guidelines, all of which shall be maintained pursuant to the regime hereinafter set forth. SECTION 4. PRIOR APPROVAL OF LANDSCAPING REQUIRED. No Landscaping Activities shall be undertaken in the Frontage Area of any Lot or on any Reserve, and no material alteration thereof shall be made, until the site plan and specifications have been submitted to and approved in writing by the ARC as to conformity and harmony of external design and location in relation to surrounding landscaping, structures, and topography, and compliance with this Declaration and the Guidelines, all of which shall be maintained pursuant to the regime hereinafter set forth. SECTION 5. DEEMED APPROVAL. In the event the ARC fails to approve or

disapprove any construction or landscaping plan or scheme within thirty-one (31) days after proper submission to the ARC, approval thereof shall be deemed to have been given. Such deemed approval shall not operate to waive any other covenants and restrictions set forth herein, nor shall such deemed approval waive the requirement for additional review of any material change to any plan or scheme so approved. SECTION 6. MINIMUM LOT AREA. All Lots shall have the minimum dimensions as depicted on the Plat and no Lot shall be divided or re-subdivided. SECTION 7. TYPE OF RESIDENCE. Only one detached single-family residence of not 10 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT more than two (2) stories tall shall be built or permitted on each Lot. All Residences shall have an attached or detached, enclosed garage for no less than two (1) nor more than four (4) cars. Carports on Lots are prohibited. All structures shall be of new construction and no previously built or occupied structure shall be moved from another location onto any Lot. All Residences must be kept in good repair and must be painted when necessary to preserve their attractiveness. No trailer homes, mobile homes, motor homes, recreational vehicles, tents, shacks, garages, or other outbuildings may be used as a residence at any time, either temporarily or permanently. SECTION 8. LIVING AREA REQUIREMENTS. The air-conditioned living area of any single-family dwelling located on any Lot, exclusive of open porches and garages, shall contain not less than Two thousand one hundred (2,100) square feet for a single-story residence and not less than Two thousand five hundred (2,500) square feet for a two-story residence, with a minimum of 2,100 sq. ft. of living area on the first floor. SECTION 9. LOCATION OF RESIDENCE ON LOT. Unless otherwise approved in writing by the Declarant, all residences on each Lot shall face the Street. Each attached or detached garage shall, unless otherwise directed or permitted by the Declarant, face the side Lot line and must comply with the Driveway Guidelines. Driveway access will be provided from the front Lot line only. Culvert positioning is pre-determined for each lot per the Driveway Guidelines. No residence shall be located on any Lot nearer to the front Lot line or nearer to the side Street line than the building set back line as shown on the recorded Plat of 50'. No residence shall be located more than 75' from the front Lot line. No residence or other structure shall be located on any utility easement. No residence or other structure may be located nearer than twenty (20) feet from an interior Lot line and all home must be centered on the lot between the side lot lines unless other wise approved by the ARC. 11 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT SECTION 10. TYPE OF CONSTRUCTION. Unless otherwise approved in writing by the ARC, more than ninety percent (90%) of the exterior wall area of all residences, excluding gables, windows, and door openings, must be of masonry to include: stone, brick, brick veneer, or cementious siding materials (e.g. "Hardiplank"). Such cementious siding will be considered "masonry" in calculating the required percentage. All siding otherwise utilized in sheathing the exterior walls or gables of any Residence, shall be composed of cementious materials only and no vinyl or aluminum siding shall be permitted. Stucco cannot exceed 30% of exterior wall area. Every garage and permitted accessory building shall correspond in style and architecture with the dwelling to which it is appurtenant. SECTION 11. STORAGE BUILDINGS. An exterior storage building may be

constructed as an appurtenance to a Residence, provided the plans for such buildings are submitted to the ARC and approved as in compliance with this Declaration and the Guidelines. Such storage buildings must be constructed on a concrete foundation or pad, composed of materials that are identical to or harmonious with the exterior of the Residence, and roofed in materials identical to that used for the Residence. Such buildings are limited to no more than one (1) structure per Lot, with a total area no greater than one hundred and fifty (150) square feet, and with a finished height no greater than six (6) feet tall. SECTION 12. BARNS, STABLES, OUTBUILDINGS. Barns, stables and other outbuildings are permitted in the Tejas Lakes community, however, in all cases, the plans for construction shall be reviewed and approved on a case basis. Whenever possible, outbuildings should use the same materials and architecture to be in harmony with the residence. No prefabricated aluminum, light duty metal, or "pole & tin" structures are permitted. All barns, stables and other outbuildings shall be of substantial and new construction. Barns and storage 12 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT buildings made to look like barns are permitted to have a traditional barn appearance and need not match the style of the residence, however, if the style of the barn is such that it closely resembles the residence then the same materials and construction techniques should be used. Very large barns which have long walls should have some variation to the walls which face streets, such as stable windows or false stable windows with contrasting trim, to break the monotony of such a large blank space. The placement of barns and stables should take into consideration the effects to adjacent property owners. Except for Lots 24 through 35 of Block 3 of the Development, barns stables and other outbuildings must be located behind the residence and no closer than sixty feet (60') to side lot lines. In the case of Lots 24 through 35 of Block 3, when the residence is planned to overlook the river, placement of barns, stables and other outbuildings should not unnecessarily detract from the majesty of the front façade. In every case, stables and equestrians wash down facilities should be elevated a minimum of 24 inches about natural ground to encourage drainage away from the site and to prevent bogging or ponding. No outdoors storage of feed, hay or bedding materials is permitted. Large outdoor and indoor equestrian facilities, such as arenas, are permitted on lots larger than 3.5 acres, but plans for construction of such facilities shall be reviewed and approved on a case by case basis by the A.R.C. SECTION 13. ROOF MATERIAL. Roofs on all Residences and appurtenances shall be constructed of composition-type shingles only, in Rustic Black color only. SECTION 14. EXTERIOR LIGHTING. All exterior lighting shall be subject to prior approval by the ARC and shall be harmonious with the surrounding area. No lighting shall be allowed which causes a nuisance to other Owners. SECTION 15. FENCES. All fences shall be approved in advance by the ARC and shall 13 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT be subject to the Landscape Design Guidelines. The Declarant may construct a barrier fence (the "Barrier Fence") along that portion of the Development that borders Jeske Road. The height, composition, and design of the Barrier Fence shall be subject to the discretion of the Declarant. The Association shall be responsible for the maintenance of the Barrier Fence. Other than the Barrier Fence, no fence shall exceed six (6) feet in height. Other than the Barrier Fence, no fence or wall shall be erected on any Lot nearer to the Street than the front of the main residential dwelling or the front Lot set-back line, whichever is further from the street. All Lots must

utilize rod iron or wooden, cedar "stockade-type" fencing materials of dimensions and type as specified in the Landscape Design Guidelines. All lake lots must use rod iron on all fences facing a street or more than 50' from the back of the residence and on all sides beyond 50' and along all fences on a lake. The erection of chain-link, barbed-wire, or any other type of fencing is prohibited. SECTION 16. LANDSCAPING. All landscaping is subject to the Landscape Design Guidelines. There shall be no decorative appurtenances placed on front lawns or any other portion of any Lot visible from the street, other than the lighting specified in these restrictions or specifically approved by the ARC. The term "decorative appurtenances" shall include, but not be limited to, sculptures, bird baths, birdhouses, fountains, or other decorative embellishments. SECTION 17. GRASS, SHRUBBERY AND TREES. The Owner of each Lot shall submit to the ARC for review and approval a detailed site plan depicting the locations and type of all beds and plantings. Such plan shall include grass in the area between the Residence and the curb line of each abutting Street. Grass, shrubbery and weeds shall be regularly watered, maintained, and trimmed to prevent unsightly appearance. Dead or damaged trees or plants, which might create a hazard to property or persons, shall (after any necessary notice has been 14 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT given) be promptly removed or repaired. SECTION 18. POLES, MASTS, EXTERIOR ANTENNAE/AIR CONDITIONERS. No poles, masts, radio or television wires, satellite dishes or antennae shall be placed on any Lot between the residence and an adjoining Street; nor shall poles, masts, or antennae, including free-standing television or radio antennae, be installed on any lot unless it is contained within the attic of the residence and not visible from any Street or adjoining Lot. If an external antenna is required to obtain an acceptable signal, application may be made to the ARC for a variance. One (1) removable flag pole may be attached to each Residence for the occasional display of flags provided that the location and placement of such flag poles is subject to approval by the ARC and no such flag poles may exceed five (5) feet in length. No satellite dishes with a dish larger than thirty-six (36) inches in diameter shall be permitted on any Lot, however, satellite dishes smaller than 36 inches may be utilized, provided they are not visible from any Street. No window or wall type air conditioners, or appliances or installations of any mechanical equipment upon the roofs of structures, visible from any Street, shall be permitted. SECTION 19. DRIVEWAYS. On each Lot the Builder shall construct and the Owner shall maintain at his/her expense the driveway from the garage to the abutting street, including the portion of the driveway in the Street easement, and the Builder shall repair at his/her expense any damage to the Street occasioned by connecting the driveway thereto. All Driveways must be concrete. SECTION 20. SCREENING FENCES. Except as otherwise provided herein, plants, fences or walls utilized in protective screening areas, shall be maintained to form an effective screen for the protection of the Development throughout the entire length of such areas by the Owners of the Lots adjacent thereto at their own expense. All utility meters, equipment, air 15 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT conditioning compressors and similar items must be visually screened by shrubbery or fencing in a manner satisfactory to the ARC. SECTION 21. WINDOW COVERINGS. Solar screens, exterior window blinds,

aluminum window coverings, bedding sheets, aluminum foil and similar window covers or obstructions are prohibited on all windows. All Window Coverings are subject to approval by the ARC. SECTION 22. PRIVATE UTILITY LINES. All electrical, telephone, and other utility lines and facilities which are located on a Lot, and that are not owned by a governmental entity or a public utility company, shall be installed in underground conduits or other underground facilities unless otherwise approved in writing by the Declarant. SECTION 23. MAILBOXES. Declarant shall cause central mailbox facilities to be constructed within the Development. Therefore, no mailboxes shall be constructed or placed on any Lot or attached to any Residence. Upon the showing of a bona fide disability by a resident, however, the ARC may grant a variance to allow the construction of a mailbox at a Residence, provided such mailbox is harmonious with the exterior design of the Residence and is situated in an unobtrusive location. SECTION 24. The duties and powers of Declarant, and any assigns or designated representatives as provided in this Declaration, shall cease on the date upon which a residence has been constructed on each Lot or each and every Lot has been conveyed to a third-party unrelated to Declarant. Thereafter, the Declarant's powers and duties will be exercised by the Association. Declarant and the Association shall enforce these Guidelines, however,

notwithstanding any express or implied term or provision of this Declaration, Declarant or the Association shall never be obligated to enforce any provision herein, and failure to do so shall 16 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT never be a ground for any liability for or recovery of any damages against the Declarant, the Association, or any Owner. The Association is charged with the responsibility for assessment, collection and application of the charges imposed on property owners in the Development and enforcement of the Restrictions. SECTION 25. WATER WELLS AND SEPTIC SYSTEMS. In order to create consistent, safe and uniform placement, a Schematic diagram showing the acceptable areas for placement of water wells and septic fields for Tejas Lakes will be on file with the Fort Bend County Health Department. Compliance with this Schematic is mandatory. ARTICLE IV USE RESTRICTIONS SECTION 1. RESIDENTIAL USE. Each and every Lot is hereby restricted to residential dwellings for single-family residential use only. No structure other than one single-family residence and its outbuildings shall be constructed, placed on, or permitted to remain on any Lot. As used herein, the term "residential use" shall be construed to prohibit the use of any Lot for duplex houses, garage apartments for rental purposes or apartment houses. As used herein, the term "single-family" shall mean two or more people related by marriage or blood and no more than four (4) people unrelated by marriage or blood. SECTION 2. COMMERCIAL ACTIVITIES PROHIBITED. No retail sales,

commercial, or manufacturing use shall be made of any of the Lots, even though such use be subordinate or incident to use of the premises as a residence. Lots shall not be used for or in connection with the conduct of any trade, business, profession, or commercial activity of any kind or nature whatsoever. No building upon any lot or upon the common area shall be used in the conduct of any real estate business, as an office or otherwise, except that grantor or its 17 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT designees may maintain model homes and real estate offices for the purpose of selling any lot or lots (improved or unimproved) subject hereto and other real property owned by grantor or persons designated by grantor and contiguous to the property subject hereto; provided, however, that the rights of grantor to conduct such commercial activities shall not extend beyond the Initial Period. SECTION 3. BUILDING MATERIALS. No Lot shall be used for the storage of any materials whatsoever, except that material used in the construction of improvements erected upon any Lot may be placed upon such Lot at the time construction is commenced. During the initial construction or remodeling of the Residences within the Development, building materials may be placed or stored outside the property lines and building materials may remain on Lots for a reasonable time, so long as the construction progresses without undue delay after which time these materials shall either be removed from the Lot or stored in a suitable enclosure on the Lot. Under no circumstances shall building materials be placed or stored on the street paving. SECTION 4. REMOVAL OF TREES AND SHRUBBERY. No tree having a diameter of six (6) inches or more (measured from a point two feet above the ground) shall be removed from any Lot without the express written authorization of the ARC. Dead or damaged trees, which might create a hazard to property or persons within the Development shall (after any necessary notice has been given) be promptly removed or repaired, and if not removed by Owner upon request, then the Declarant or Association may remove or cause to be removed such trees at the Owner's expense and the Declarant or Association shall not be liable for damage by such removal. SECTION 5. SIGNS. No signs, billboards, posters or advertising devices of any kind shall be permitted on any Lot without the prior written consent of the Declarant prior to the 18 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT completion of the Initial Period, other than (a) one sign of not more than the ten (10) square feet advertising the particular Lot on which the sign is situated for sale, and (b) one sign of not more than ten (10) square feet to identify the particular Lot during the period of actual construction of a single-family residential structure thereon. The right is reserved by Declarant to construct and maintain, or to allow Builders within the Development to construct and maintain, signs, billboards and advertising devices as is customary in connection with the sale of newly constructed residential dwellings. After the Initial Period, no signs of any type are permitted on any Lot, except as may be permitted by regulations adopted by the Board, other than one sign of not more than the ten (10) square feet advertising a Residence for sale. SECTION 6. DISPLAY OF FLAGS. The Board may adopt such regulations as it deems desirable to limit the display of flags to specified time periods or calendar days. SECTION 7. DISPOSAL OF TRASH. No trash, garbage, manure, debris, or offensive material of any kind shall be kept or allowed to remain on any Lot, nor shall any Lot be used or maintained as a dumping ground for such materials. All such matter shall be placed in sanitary refuse containers constructed of metal, plastic, or masonry materials with tight fitting sanitary covers or lids and placed in an area adequately screened by planting or fencing. Equipment used for the temporary storage and/or disposal of such material prior to removal shall be kept in a clean and sanitary condition and shall comply with all current laws and regulations and those which may be promulgated in the future by any federal, state, county, municipal or other governmental body with regard to environmental quality and waste disposal. In a manner consistent with good housekeeping, the Owner of each Lot shall remove such prohibited matter from his Lot at regular intervals at his expense. SECTION 6. TEMPORARY BUILDINGS. Temporary buildings or structures shall not 19 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT be permitted on any Lot. Declarant may permit temporary toilet facilities, sales and construction offices and storage areas to be used in connection with the construction and sale of residences, but such facilities shall not be maintained in any Street. Builders constructing improvements on Lots may use garages as sales offices for the time during which such Builders are marketing homes within the Development. At the time of the sale of a residence by a Builder, any garage appurtenant to such residence used for sales purposes must be reconverted to a garage. SECTION 7. ANIMALS AND LIVESTOCK. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any Lot. Consistent with its use as a residence, dogs, cats or other household pets may be kept on a Lot, provided that they are not kept, bred, or maintained for any business purposes and further provided that no more than three (3) such pets shall be kept on any single Lot. SECTION 8. NUISANCES. No noxious or offensive trade or activity shall be carried on upon any Lot nor shall anything be done thereon which may be or become an annoyance or nuisance to residents of the Development. SECTION 9. STORAGE AND REPAIR OF VEHICLES. All motor vehicles shall be parked in a garage. Overnight parking of motor vehicles in driveways is prohibited. No boat, mobile home, recreational vehicle, camper, trailer, truck larger than a three-quarter (3/4) ton pickup, bus, or unused or inoperable automobiles shall be parked or kept in the Street adjacent to any Lot or on any Lot within view of the Street. No Owner of any Lot or any visitor or guest of any Owner shall be permitted to perform work on automobiles or other vehicles in driveways or Streets other than work of a temporary nature. For the purposes of the foregoing, the term "temporary" shall mean that the vehicle shall not remain in driveways or Streets in excess of forty-eight (48) hours. 20 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT SECTION 10. PERMITTED HOURS FOR CONSTRUCTION ACTIVITY. Except in an emergency or when other unusual circumstances exist, as determined by the Board, outside construction work or noisy interior construction work shall be permitted only between the hours of 6:00 A.M. and 10:00 P.M. SECTION 10. MINERAL PRODUCTION PROHIBITED. No drilling, developing

operations, refining, quarrying or mining operations of any kind shall be permitted upon any Lot, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon any Lot. No derrick or other structure designed for use in boring for oil, natural gas or water shall be permitted upon any Lot. Declarant waives his right to use the surface of any Lot for the exploration, development or production of oil, gas, or other minerals or water from the mineral estate, if any, owned and retained by Declarant. SECTION 11. CLOTHESLINES AND STORAGE. No clotheslines shall be placed on any Lot. No lumber, metals, or bulk materials shall be kept, stored, or allowed to accumulate on any lot or the Common Property, except building or other materials to be used in connection with the construction, alteration, or improvement of a Residence as approved by the ARC. SECTION 12. ANIMALS AND LIVESTOCK. No animals of any kind may be raised, bred, or kept on any Lot for commercial purposes. Consistent with its uses as a residence, dogs, cats, horses and other domestic animals may be kept on a Lot once the Single Family Residence on such Lot is completed and occupied; provided, however, there shall be not more than two (2) small animals such as dogs and cats per full acre of land contained within a Lot . For purposes hereof, cows, pigs, goats, sheep, ostriches, emus, guinea, chickens and other barnyard fowl shall not be considered to be domestic animals and are not permitted on any Lot. All animals shall be kept on a leash when not within the residence or a confined area on the Lot. Animals which are 21 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT permitted to roam free, or which in the sole discretion of the Board, endanger health, make objectionable noise, or constitute a nuisance or inconvenience to he Owners of Occupants within The Development may be removed by the Board. Animal Control authorities hall be permitted to enter the Properties to patrol and remove pets. Pets shall be registered, licensed and inoculated as required by law.

ARTICLE V PROPERTY RIGHTS IN AND USE OF THE COMMON PROPERTIES SECTION 1. OWNERS' EASEMENT OF ENJOYMENT. Subject to the provisions of Section 2 of this Article, every Owner shall have a nonexclusive right and easement of use, recreation and enjoyment in and to the Common Properties and such easement shall be appurtenant to and shall pass with the title of each respective Lot. Such easement shall not give such person the right to make alterations, additions, or Improvements to the Common Properties. SECTION 2. EXTENT OF OWNERS' EASEMENT. The rights and easements of use, recreation and enjoyment created hereby shall be subject to the following: (a) The right of the Declarant to reconfigure, add or delete properties as Common Properties in the course of Declarant's development of Tejas Lakes or relating to any amendment to the Plat; (b) The right of the Association to prescribe reasonable regulations and policies

governing, and to charge fees and/or deposits related to, the use, operation and maintenance of the Common Properties; (c) LIENS OR MORTGAGES PLACED AGAINST ALL OR ANY PORTION OF THE COMMON PROPERTIES BY THE DECLARANT and, after the Initial Period, by the

22 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT Association (but, as to the Association, only with respect to monies borrowed by the Association to improve or maintain the Common Properties); (d) The right of the Association to enter into and execute contracts with any party (including, without limitation, the Declarant or its affiliates) for the purpose of providing maintenance or such other materials or services consistent with the purposes of the Association and this Declaration; (e) The right of the Declarant or the Association to take such steps as may be reasonably necessary to protect the Common Properties against foreclosure; (f) The right of the Declarant and, after the Initial Period, the Association, to enter into and execute contracts with the owner-operators of any utility or community antenna television system ("CATV") or other similar operations for the purpose of extending cable or utility service on, over or under the Common Properties and utility easements to ultimately provide service to one or more of the Lots; (g) The right of the Association to improve, landscape, and maintain the Common Properties and the Barrier Fence and, after the Initial Period, the right of the Association to design, reconfigure, and alter the Common Properties or Barrier Fence. (h) The right of the Association to suspend the voting rights of any Owner and to suspend the right of any Resident to use or enjoy any of the Common Properties for any period during which any assessment (including without limitation "fines") against any Lot remains unpaid, and otherwise for any period deemed reasonable by the Association for an infraction of the then-existing rules and regulations and/or architectural guidelines; (i) The right of the Declarant and, after the Initial Period, the Association, to dedicate or transfer all or any part of the Common Properties owned by the Association to any 23 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT municipal corporation, public agency, governmental authority, or utility for such purposes and upon such conditions as may be agreed to by the Declarant or Association, as the case may be; and (j) The right of the Association to promulgate and implement any open space

declarations applicable to the Common Properties which may be permitted by law in order to reduce property taxes. SECTION 3. RULES OF THE BOARD OF DIRECTORS. All Owners, Residents, and their families and guests shall abide by any reasonable Rules and Regulations adopted by the Association. The Board of Directors shall have the power to enforce compliance with said Rules and Regulations by all appropriate legal and equitable remedies. SECTION 4. USE OF RESERVES A&B (LAKE AND PARKS). Use of Reserve B shall be limited to Owners and their families and guests for the purposes to which the Common Properties are dedicated by Plat or otherwise by this Declaration or the Association. The HOA will be responsible for all taxes, fees and maintenance of Reserves A&B. SECTION 5. USE OF RESERVE C (DRAINAGE AND DETENTION). Use of Reserve C shall be limited to Tejas Lakes Development, LP or its assignees for drainage or detention or other uses as Tejas Lakes Development, LP deems appropriate. The HOA will be responsible for all taxes, fees and maintenance of Reserve C.

ARTICLE VI COVENANT FOR MAINTENANCE ASSESSMENTS SECTION 1. CREATION OF THE LIEN AND PERSONAL OBLIGATION FOR ASSESSMENTS. The Declarant, for each Lot, hereby covenants, and each Owner of any Lot by

24 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT acceptance of a Deed thereof, whether or not it shall be expressed in the Deed or other evidence of the conveyance, is deemed to covenant and agree to pay the Association a one-time initial assessment (the "Initial Assessment"), a yearly, recurring annual assessment (the "Annual Assessment"), and such special assessments as the Board may from time to time deem necessary (the "Special Assessments"), to defray the cost of the operations and business of the Association, including the installation, maintenance, and preservation of landscaping and improvements located on the Common Property and in the Development. These assessments, together with

such interest thereon and cost of collection thereof, as hereinafter provided, shall be a charge on the land and shall be secured by a continuing lien (the "Contractual Lien") upon the Lot against which such assessments or charges are made. Each such assessment, together with any

applicable interest, costs, and reasonable attorney's fees shall also be and remain the personal obligation of the individual or individuals who owned the particular Lot at the time the assessment or charge fell due notwithstanding any subsequent transfer of title to such Lot. SECTION 2. PURPOSE OF ASSESSMENTS. The assessments levied by the

Association shall be used for the purpose of promoting the recreation, health, safety and welfare of the residents of the Development through the design, implementation and maintenance of a comprehensive neighborhood aesthetic and landscaping regime. Initially, the Initial Assessment may be used to pay for establishing electricity and water for the Common Property, streetlight installation, landscaping of the Common Property, and the construction of such Improvements on the Common Property or within the Development as Declarant may deem desirable in its sole discretion. The Annual Assessments shall be used to pay for the operating expenses and costs of the Association, including but not limited to the maintenance and repair expense associated with the Common Property, the Barrier Fence (if constructed), and other improvements within the 25 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT Development, the administrative overhead and expenses for the Association, mailing costs or postage, insurance, wages or personnel expenses, professional or consulting fees, or such other charges or expenses as the Association may incur in its operations. The Associations' funds accumulated from the assessments may also be used to reimburse the Declarant for any cost and expense incurred by Declarant in furtherance of the above-referenced activities and improvements. Without limiting the foregoing, the total assessments accumulated by the

Association, insofar as the same may be sufficient, shall be applied toward the planting and upkeep of trees, grass and shrubbery on the Common Property and doing any other thing necessary or desirable in the opinion of the Board to keep and maintain the landscaping regime hereby established or which the Board considers of general benefit to the Owners or occupants of the Lots, including the establishment and maintenance of a reserve for replacement and supplementation of existing landscaping, improvements, and other charges. The judgment of the Board in establishing annual assessments and other charges, and the actions of the Board of Directors associated with the expenditure of said funds, shall be final and conclusive so long as said judgment is exercised in good faith. SECTION 3. AMOUNT OF ASSESSMENTS. There shall be charged to each Lot an Initial Assessment of $250 payable at closing. The Initial Assessment is in addition to the Annual Assessment. The first Annual Assessment shall be $250 payable at closing. The Annual Assessment is in addition to the Initial Assessment. All assessments shall be added to the funds accumulated by the Association. The Amount of the assessment can be changes by the Board once annually but no more than a 25% increase in any annual period. In addition there will be a transfer fee of no more than $75 per Lot. SECTION 4. SPECIAL ASSESSMENTS. Subject to the terms of the Associations' 26 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT Bylaws, the Board may from time to time declare a Special Assessment to provide for unusual or non-recurring expenses or costs, including but not limited to, large scale changes or repairs to the improvements or landscaping on the Common Property. In the event the Board declares a Special Assessment, such charge shall be in addition to the Annual Assessment. SECTION 5. RATES OF ASSESSMENT. All assessments on all Lots, whether or not owned by the Declarant, shall be fixed at uniform rates for all Lots; provided, however, no assessment shall be applicable to Lots that are owned by Declarant. SECTION 6. ROAD MAINTENANCE FUND ­ There shall be a charge to each Lot upon submission of house plans to the TLARC of $500 for the purposed of creating and maintaining a road maintenance fund. The funds will be held by the HOA in a separate account for the express purpose of road maintenance as deemed necessary by the Board. SECTION 7. DATE OF COMMENCEMENT AND DETERMINATION OF ASSESSMENTS. Upon the conveyance of any Lot owned by Declarant, the Initial Assessment attributable to that Lot shall be paid by the new Owner at closing. The Annual Assessment provided for herein shall commence on February 1, 2008. A Lot Owner's first Annual

Assessment shall be prorated according to the number of months remaining in the then current calendar year, but shall be paid in advance at closing by the Owner upon consummation of the Owner's purchase of the Lot. The Board of Directors shall fix the amount of the Annual Assessment at least thirty (30) days in advance of each annual assessment period. Written notice of the Annual Assessment shall be sent to every Owner and shall be payable on or before December 15 of the year to which the assessment is applicable. The Association upon written request, and for a reasonable charge, shall furnish a certificate, signed by an officer of the Association, verifying the status of any assessments due and owing on any specified Lot. The 27 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT amount of and date for commencement of any Special Assessment shall be determined by the Board in its sole discretion. Written notice of any Special Assessment shall be sent to every Owner at least sixty (60) days in advance of the commencement date. SECTION 8. EFFECT OF NONPAYMENT OF ASSESSMENTS: REMEDIES OF THE ASSOCIATION. Any assessments or charges which are not paid when due shall be delinquent. Not withstanding the provisions set forth in Section 9 of Article IX regarding dispute resolution, if any assessment or charge is not paid within thirty (30) days after the due date, the Association may bring an action at law against the Owner personally obligated to pay the same, or to foreclose the Contractual Lien herein retained against the Lot. Interest accruing on past due assessments at the lesser of fifteen percent (15%) per annum or the maximum rate permitted by law, costs, and reasonable attorney's fees incurred in any such action shall be added to the amount of such assessment or charge. Each Owner, by his acceptance of a Deed to a Lot, thereby grants and affords to the Association the Contractual Lien to secure the payment of the maintenance assessments and charges and expressly vests in the Association or its agents, the right and power to bring all actions against such Owner personally for the collection of such assessments and charges as a debt and to enforce the Contractual Lien by all methods available for the enforcement of such liens, including judicial foreclosure by an action brought in the name of the Association or through a non-judicial foreclosure pursuant to Section 51.002 of the Texas Property Code. Non-judicial foreclosure of the Contractual lien, however, shall not be effective against any interest of the United States Government or its agencies in any Lot. No Owner may waive or otherwise escape liability for the assessments provided for herein by abandonment of the Lot or the refusal to permit the Association to perform landscape or maintenance activities upon the Owner's Lot. 28 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT SECTION 9. SUBORDINATION OF LIEN TO MORTGAGES.

As hereinabove

provided, the title to each Lot shall be subject to the Contractual Lien securing the payment of all assessments and charges due the Association, but the Contractual Lien shall not be superior to any valid purchase money lien or a valid lien securing the cost of construction of home improvements. Sale or transfer of any Lot shall not affect the Contractual Lien; provided, however, the sale or transfer of any Lot pursuant to a judicial or non-judicial foreclosure under the aforesaid superior liens shall extinguish the Contractual Lien securing such assessment or charge as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot or the Owner thereof from liability for any charges or assessments thereafter becoming due or from the lien thereof. SECTION 10. EXEMPT PROPERTY. All properties dedicated to, and accepted by, a local public authority shall be exempt from the assessments and charges created herein. Notwithstanding the foregoing, no Lot which is used as a residence shall be exempt from said assessments and charges. ARTICLE VII EASEMENTS SECTION 1. EASEMENT FOR MAINTENANCE. There is hereby created an easement upon, across, over and under all of the Lots for ingress and egress in connection with installing, replacing, and maintaining all landscaping, including, but not limited to, grass, ground covers, shrubs, trees, and the Barrier Fence. By virtue of this easement, it shall be expressly permissible for the Association and other entities with whom the Association has contracted to enter upon any Lot to perform services associated with the installation of watering and drainage systems, the seeding, watering and mowing of all lawns, the pruning and cutting of all trees and shrubbery, 29 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT the application of pesticides, herbicides and fertilizers, and the repair and maintenance of the exterior of any Residence or improvements located on any Lot so as to insure compliance with the Guidelines and these Restrictions. SECTION 2. EASEMENT FOR FIRE AND POLICE PROTECTION. Declarant hereby grants to the City of Richmond, the County of Fort Bend, all of the State of Texas, or such other governmental authority or agency as shall from time to time have jurisdiction over the Development (or any portion thereof) with respect to law enforcement and fire protection, the perpetual, non-exclusive right and easement upon, over and across all of the Common Properties for purposes of performing such duties and activities related to law enforcement and fire protection as shall be required or appropriate from time to time by such governmental

authorities under applicable law. SECTION 3. EASEMENTS FOR PUBLIC UTILITIES. Except as may be otherwise permitted by the ARC (for example, fencing, flatwork, or landscaping), no Owner shall erect, construct or permit any obstructions or permanent Improvements of any type or kind to exist within any easement area for public utilities or drainage which would restrict or adversely affect drainage or the use of the easement for its intended purpose. Each Owner assumes full,

complete, and exclusive liability and responsibility for all cost and expense related to damage, repair, relocation, and restoration of any such Improvements (including but not limited to fences) constructed within any such easement, whether or not approval by the ARC has been obtained. Except as to special street lighting or other aerial facilities which may be required by municipal authorities or which may be required by the franchise of any utility company or which may be installed by the Declarant pursuant to its development plan, no aerial utility facilities of any type (except meter, risers, service pedestals and other surface installations necessary to maintain or 30 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT operate appropriate underground facilities) shall be erected or installed in the Development whether upon individual Lots, easements, streets or rights-of way of any type, either by the utility company or any other person or entity, and all utility service facilities (including, but not limited to, water, sewer, gas, electricity and telephone) shall be buried underground unless otherwise required by a public utility. All utility meters, equipment, air conditioning compressors and similar items must be visually screened in a manner satisfactory to the ARC. ARTICLE VIII ENFORCEMENT AND MAINTENANCE SECTION 1. GENERAL. Not withstanding the provisions of Section 9, Article IX regarding dispute resolution, the Declarant, the Association, or any Owner shall have the right to enforce these Restrictions, and the Declarant or the Association shall have the right to foreclose the lien granted in Article VI, by any proceeding at law or in equity and such an action may be filed in any court of competent jurisdiction. All other Disputes are governed by the provisions of Section 9, Article IX. The failure of the Declarant, the Board, the Association, or any Owner to enforce any of the provisions herein contained shall in no event be deemed a waiver of the right to do so thereafter. SECTION 2. OWNER MAINTENANCE. Each Owner further covenants and agrees to maintain, paint, repair, replace and care for the roofs, gutters, down spouts, fences, exterior building surfaces, the foundation and structural members of all improvements on his/her Lot, in a safe, neat and attractive manner and in a state of good repair. The exterior appearance of all structures shall be maintained in strict conformity with the improvements erected on other adjacent Lots and all repairs or replacements shall be of similar quality materials that are consistent with the existing architectural style and the Guidelines. Such maintenance shall 31 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT include (without limitation): - The proper seeding, sodding, consistent watering, mowing and edging of all lawns; - The pruning and cutting of all trees and shrubbery; - Prompt removal of all dead shrubs and plants, leaves, litter, trash, refuse and waste; - Proper and adequate watering of the lawn and all Landscaping; - Keeping exterior lighting and mechanical facilities attractive and in working order; - Keeping lawn and garden areas alive, free of weeds and attractive; - Keeping driveways, curbs, and sidewalks in good repair and condition; - Maintenance of exteriors of any improvements including but not limited to promptly repairing any exterior damage or deterioration and removing any mildew; and - Complying with all governmental health and police requirements. SECTION 3. ENFORCEMENT OF EXTERIOR MAINTENANCE. In the event of violation of any Covenant or Restriction by any Owner or occupant of any Lot and the continuance of such violation after ten (10) days written notice thereof, or in the event the Owner or occupant has not proceeded with due diligence to complete appropriate repairs and maintenance after such notice, the Association shall have the right (but not the obligation), through its agents or employees, to repair, maintain and restore the Lot and the exterior of the residence and any other improvement located thereon, including the Landscaping, at the expense of the non-complying Lot Owner. All such expenses and charges shall become a lien against the Lot as provided by Article VI. ARTICLE IX GENERAL PROVISIONS SECTION 1. TERM. These covenants and restrictions shall run with the land and shall 32 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT be binding upon all parties and all persons claiming under them until December 31, 2057, after which time said covenants and restrictions shall be automatically extended for successive periods of ten (10) years each unless an instrument signed by the Owners of sixty percent (60%) of the Lots has been recorded in the Real Property Records of Fort Bend County, Texas, agreeing to terminate the covenants and restrictions herein. SECTION 2. VALIDITY OF MORTGAGE. Violation of or failure to comply with these Restrictions shall not affect the validity of any mortgage, bona fide lien, trust deed, or similar security agreement which may be then existing on any Lot. SECTION 3. SEVERABILITY. Invalidation of any one or more of these covenants and restrictions by judgment or other court order shall not affect any other provisions, which shall remain in full force and effect except as to any terms and provisions which are invalidated. SECTION 4. GENDER AND GRAMMAR. The singular and the plural, wherever used herein shall be construed to mean or include one or more, when and as applicable, and the necessary grammatical changes required to make the provisions hereof apply to corporations (or other entities) or individuals, male or female, shall in all cases be assumed as though in each case fully expressed. SECTION 5. TITLES. The titles of this Declaration contained herein are for

convenience only and shall not be used to construe, interpret, or limit the meaning of any term or provision contained in this Declaration. SECTION 6. INTERPRETATION. If this Declaration or any word, clause, sentence, paragraph, or other part thereof shall be susceptible of more than one or more of conflicting interpretations, then the interpretation which is most nearly in accordance with the general purposes and objectives of this Declaration is the intended interpretation and such interpretation 33 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT shall govern. SECTION 7. OMISSIONS. If any punctuation, word, clause, sentence, or provision necessary to give meaning, validity, or effect to any other word, clause, sentence, or provision appearing in this Declaration shall be omitted, it is hereby declared that such omission was unintentional and that the omitted punctuation, word, clause, sentence or provision shall be supplied by inference. SECTION 8. NOTICES. Any notice required to be sent to any Member or Owner under the provisions of this Declaration shall be deemed to have been properly sent when mailed, postpaid, to the last known address of the person who appears as a Member or Owner on the records of the Association at the time of such mailing. SECTION 9. DISPUTE RESOLUTION. Declarant and each Member or Owner, by accepting a deed to any Lot or portion thereof, hereby agrees that all Disputes as defined herein shall be subject to binding arbitration and any right to trial by jury is expressly waived. For purposes of this section the term "Dispute" shall mean all controversies and claims arising out of or relating to (i) this Declaration, (ii) any suit seeking a declaration or interpretation of the restrictions imposed herein, (iii) any acts and/or omissions by the Declarant (and its officers, directors or agents) or the Board, and/or (iv) any actual or purported representations or warranties, express or implied, relating to the Development. The term "Dispute" does not, however, include actions filed by the Declarant or the Association to collect assessments, enforce these restrictions, or foreclose the lien granted in Article VI as provided in Section 7, Article VI and Section 1, Article VIII. All Disputes shall be submitted to the American Arbitration

Association ("AAA") in Houston, Harris County, Texas, for binding arbitration in accordance with the rules and procedures of the AAA. The arbitration shall be governed by Texas law and 34 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT the U.S. Arbitration Act, 9 U.S.C. §§ 1-16, to the exclusion of any provisions of state law that are inconsistent with the Federal Act. A Dispute may, however, by agreement among the Parties, be submitted to an agreed third-party neutral for non-binding mediation prior to the initiation of arbitration. The award of the arbitrator shall be rendered in accordance with the AAA Rules then in effect. In rendering the award, the arbitrator shall state the reasons therefor, including any computations of actual damages or offsets, if applicable. The Parties agree to abide by and perform any award rendered by the arbitrator. If the non-prevailing Party fails to comply with all aspects of the award within thirty (30) days following issuance of the award, then the prevailing Party shall be entitled to seek enforcement of the award in any court of competent jurisdiction and the prevailing Party in such proceedings shall recover its reasonable attorney's fees and costs, in addition to any other relief to which that Party is entitled. SECTION 10. AMENDMENT. This Declaration is expressly subject to change, After the

amendment, or modification during the Initial Period solely by the Declarant.

expiration of the Initial Period, but before the expiration of these Restrictions as set forth in Section 1 of this Article, this Declaration may be amended or modified by an instrument executed by the Owners of seventy-five percent (75%) of the Lots.

IN WITNESS WHEREOF, this Declaration is executed this ________ day of _________________________, 2007.

DECLARANT: 35 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

DRAFT TEJAS LAKES DEVELOPMENT, L.P. Identify Homes Construction Managements, LLC Its: General Partner By: ______________________________________ Name: Scott Lease Title: Secretary for the General Partner

STATE OF TEXAS COUNTY OF FORT BEND

§ § §

BEFORE ME, the undersigned authority, on this day personally appeared Scott Lease, Managing Member of Identify Homes Construction Managements, LLC, the General Partner of Tejas Lakes Development, L.P., a Texas limited partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated, and as the act and deed of Tejas Lakes Development, L.P on the _______ day of _________, 2005.

__________________________________________ NOTARY PUBLIC, STATE OF TEXAS

36 DRAFT ­ FOR DISCUSSION PURPOSES ONLY

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