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Section Three, Declaration of Covenants

Filed Feb 13, 2002. The same words as the recorded document, laid out so they're easy to read on a phone or print.

This is an easy-read copy, not the official document.

It was typed from the scanned, recorded document so it's easier to read. It may have typos or missed words, and stamps, signatures and handwriting may be missing or garbled. If anything here differs from the recorded document, the recorded document is the source of truth.

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2002~014602 021-10-0784

STATE OF TEXAS §

COUNTY OF MONTGOMERY §

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS OF

THOUSAND OAKS ESTATES SUBDIVISION

SECTION 3

1488 LAND DEVELOPMENT, INC., hereinafter called "Declarant" is the Owner in fee simple of certain real property located in Montgomery County, Texas, said property being known as THOUSAND OAKS ESTATES SUBDIVISION Section 3, as per plat thereof of record in Cabinet , Sheets thru of the Map Records of MONTGOMERY County, Texas

Subject property is now or will be divided into smaller parts or tracts, the total of which will hereinafter be referred to as the “Project", or as THOUSAND OAKS ESTATES SUBDIVISION Section 3.

For the purpose of enhancing and protecting the value, utility, attractiveness and desirability of the tracts constituting such Project, Declarant hereby declares that all the real property described above and each part thereof shall be held, sold, and conveyed only subject to the following easements, authority, covenants, conditions, and restrictions, which shall constitute covenants running with the land and shall be binding on all parties having any right, title, or interest in the above described property or any part thereof, their heirs, successors, and assigns, and shall inure to the benefit of each Owner thereof.

ARTICLE I

DEFINITIONS

Section 1. “Association” shall mean and refer to Thousand Oaks Property Owners Association, Inc., its successors or assigns.

Section 2. "Declarant" shall mean 1488 LAND DEVELOPMENT, INC., its successors and assigns, provided such an assign acquires the Project in total, or the remainder in total for purposes of development and sale. Declarant may be referred to as “Developer”.

Section 3. “Tract” shall mean any plot of land as is divided or re-divided within the Project.

Section 4. “Maintenance" shall mean the exercise of reasonable care to keep buildings, roads, landscaping, lighting, drainage, irrigation systems, commons and other related improvements and fixtures in a condition comparable to their original condition, normal wear and tear excepted.

Section 5. "Member" shall mean every person or entity who holds membership in the Association. Each purchaser of property in the Project becomes a member of the Association upon such purchase.

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Section 6. | "Mortgagee” shall mean a holder of a bona fide mortgage or a beneficiary under or holder of a Deed of Trust.

Section 7. "Mortgage" shall mean a bona fide mortgage, a Deed of Trust, or a Vendor's Lien.

Section 8. "Board" shall mean the Board of Directors of the Association.

Section 9. "Drives" shall mean any common area reserved for the use by all Owners for

vehicular traffic.

Section 10. "Commons" shall mean any property reserved for or dedicated to the common use of property Owners, or established through easements across tracts, or any properties leased for such purpose.

Section 11. "Owner" shall mean the record Owner, including Declarant, whether one or more persons or entities, of the fee simple title to any tract which is a part of the Project, and shall include purchasers under contract for deed, but shall not include those holding title merely as security for performance of an obligation.

Section 12. “Project” shall mean the real property as shown in the plat of Thousand Oaks Estates Subdivision Section 3 as recorded in the plat records of Montgomery County, Texas.

Section 13. | "Vote" shall mean one vote per platted lot.

Section 14. “Lakefront Lot” shall mean and refer to lots adjoining any portion of any water impoundment or lake within the Project.

Section 15. “Lake” shall mean any water impoundment.

Section 16. “Lot” shall mean and refer to any of the numbered residential lots shown on the subdivision plat or any replat thereof or which may become incorporated by annexation or any lot resulting from the consolidation of two or more lots or fractions thereof.

Section 17. “Architectural Control Committee” or “Committee” shall mean and refer to the Thousand Oaks Subdivision Section 3 Architectural Control Committee provided for in Article III hereof.

ARTICLE II

EASEMENTS, DRIVES, ROADS, AND PRIVATE ROADS

Section 1. Roads, drives, access easements, streets, alleys and roads running through said property are hereby dedicated to the present Owners and all future Owners, their heirs, successors and assigns, of Lots in Thousand Oaks Estates Subdivision, Section 3 and the Owners of Lots in

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each subsequent section of Thousand Oaks Estates Subdivision that are contiguous to Section 3, inclusive, as it is shown on said map, and the map of each subsequent section, as private ways for the exclusive use, benefits and convenience of said Owners, their successors and assigns. It is not the intention to make said streets, roads and alleys public thoroughfares, but to retain the exclusive use and control thereof for the benefit of present and future Owners of said property. Easements for installation and maintenance of utilities, irrigation, pipelines, and drainage are hereby established and dedicated pursuant to the plat and the terms hereof. Within such easements and roads, no structure, planting, or other material shall be placed or permitted to remain which may damage or interfere with the installation and maintenance of service or utilities, or which may damage, interfere with, or change the direction or flow of drainage facilities in the easements, or which may interfere with passage along such common or any road that may be designated as a private road easement. The easement area of each tract and all improvements thereon shall be continuously maintained by the Owner of such tract, except for improvements or maintenance of which a public, private, or quasi-public authority or utility company is responsible. Roads, gated entrances, and easements established as commons for greenbelts, riding trails, hiking trails, etc. will be maintained by the Association and may not be fenced into private property except as to hereinafter prescribed. In addition to the pipeline easements reflected on the plat, an easement is reserved for an oil and gas pipeline from each designated drill site to and along the adjacent roadway to such drill site and along the roadway easement to Thousand Oaks Boulevard and then along and within the Thousand Oaks Boulevard Easement to either F.M. 1488 or Dobbin-Huffsmith Road. Further, Thousand Oaks Boulevard shall be used by and for the benefit of the purchasers of Lots in all subsequent sections of Thousand Oaks Estates Subdivision. A reservation of all roads and easements is hereby made for the benefit of and use by vehicles and personnel of any law enforcement agency, emergency or fire agency, utility company, Declarant and Declarant’s mortgagee, the Farm Credit Bank of Texas, its successors and assigns. Provided further, however, when and in case the Owners of the Lots in the several sections of Thousand Oaks Estates Subdivision shall by majority vote choose to discontinue the maintenance charge against said Lots as provided for herein, then said roads, parkways, and entrance to the Thousand Oaks Estates Subdivision shall be and are hereby dedicated to the public for the respective uses and purposes as designated on the plat.

Section 2... No dwelling unit or other structure of any kind shall be built, erected or maintained on any such easement, reservation, or right of way and such easements, reservations or rights of way shall at all times be open and accessible to representatives of the Association, to public and quasi-public utility corporations, their employees and contractors, and shall also be open and accessible to Declarant, its successors and assigns, all of whom shall have the right and privilege of doing whatever may be necessary on, or under, and above such locations to carry out any of the purposes for which such easements, reservations and rights of way are reserved.

Section 3. The Association, through its duly authorized employees and contractors shall have the right, after reasonable notice to the Owner thereof, to enter any tract at any reasonable time to perform such maintenance as may be authorized herein.

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Section 4. | The private drive or roadway easements as set forth herein or by separate instruments or as established within the commons upon the ground, are for the private use and benefit of the Owners of the tracts within the Project as therein prescribed, and under the conditions as therein set forth, and are not dedicated to the general public.

Section 5. | The Declarant/Developer or the Association shall have the authority to execute and grant unto any fresh water supply, electric utility, gas utility, telephone or other utility entity, right of way easements in the form and under the conditions as may at the time be required by said entity as a prerequisite to service of this Project with fresh water or other utility.

Section 6. | The Declarant/Developer or the Association in its authority may take unto itself or execute unto others right of way easements in the form and under the conditions as at that time may be required by said entity to distribute to each and every tract herein water for the purposes of irrigation and/or provide drainage.

Section 7. _It is understood and agreed that the easements granted herein and to be granted hereafter are reserved as permanent easements for the purposes set forth and are not subject to the time limit applicable to other restrictions.

Section 8. There is hereby reserved and established a utility easement adjacent and parallel to all roadway easements and/or drainage easements. Said utility easement is ten (10) feet wide upon the ground and sixteen (16) feet above the ground and extends from the outside boundary of the roadway easement or right of way into and upon the adjoining property on each side thereof. There is further reserved an easement, including an aerial easement, into all property adjacent thereto and in addition thereto for the purpose of installation of guy wires where necessary for securing utility poles. Developer may utilize such easements in the installation of utilities.

Section 9. Easements for installation and maintenance of utilities and drainage facilities, pipelines and alley ways are reserved as shown on the recorded plat. No construction may exist over or across any such easement. By acceptance of a deed to any one or more of the above Lots, the Owner thereof covenants and agrees to keep and maintain in a neat and clean condition any easement which may traverse a portion of the Lot being conveyed.

Section 10. Subject to the terms and conditions of this Section, the roads and streets in this Project as shown on the plat are hereby dedicated, as utility easements for the purpose of constructing, operating, maintaining or repairing a system or systems of electric lighting, electrical power, telegraph and telephone lines, gas lines, sewers, water lines, storm drainage (surface or underground), cable television, oil and gas pipelines, or any other utilities that the developer sees fit to install in, across and/or under the property.

Section 11. The Declarant/Developer, at its sole cost and expense, shall have the right and authority to install and maintain decorations for holidays including Christmas along the private drives and roadway easements and within the Commons. The Declarant/Developer, at its sole cost

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and expense, shall be responsible for the removal of the holiday decorations no later than thirty

(30) days after the occurrence of the particular holiday.

ARTICLE I

ARCHITECTURAL CONTROL

Section 1. No external improvements or changes including, but not limited to, landscaping, fences, mail boxes, dwellings, garages, barns, out buildings or any other structures, shall be erected, placed, or altered on any tract until the construction plans and specifications and a plan showing the location of the structure, complete plan of government approved anaerobic septic system showing relation to tract lines and water lines or sources have been approved by the Architectural Control Committee as to quality of workmanship and materials, harmony of external design with existing structures, and as to location with respect to topography and finish grade elevation. The Developer and the Architectural Control Committee shall prepare and provide Lot Owners with guidelines for improvements which shall be part of these restrictions. Approval shall be as provided herein.

Section 2. The Architectural Control Committee is hereby authorized to enforce any building or fire codes, or any rules, restrictions, or requirements concerning the construction of buildings on this Project required by any government authority, local, county, state, or otherwise, having the legal authority to make such requirements

Section 3. Committee Membership. Initially, the Declarant, in its sole discretion, shall appoint three (3) members of the Committee which will consist of a minimum of three (3) members, but no more than five (5) members, none of whom shall be required to be residents of Thousand Oaks Subdivision Section 3. The Committee shall and will act independently of Thousand Oaks Property Owners Association, Inc. Any three (3) of the members of the Committee shall have the full authority and power to act for the Committee. No member of the Committee or its designated representatives shall be entitled to any compensation for services performed pursuant to this Article. The Committee may, however, employ one or more architects, engineers, attorneys, or other consultants to assist the Committee in carrying out its duties hereunder, and the Association shall pay such consultants for such services as they render to the Committee. A majority of the Committee may designate one or more representatives to act for it and such representatives shall have the full right, authority, and power to carry out the functions of the Committee.

Any member of the Committee appointed by the Declarant, may be removed, with or without cause, by the Declarant. In the event of death or resignation of any member or members of said Committee, the Declarant shall appoint its successor member or members, and until such successor member or members shall have been so appointed, the remaining member or members shall have full authority to approve or disapprove plans, specifications and plat plans submitted or to designate a representative with like authority. In the event the Declarant fails to appoint successor members, the Association shall make such appointments.

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Section 4. | The committee's approval or disapproval as required in these covenants shall be in writing. In the event the committee, or its designated representative, fail to approve or disapprove within thirty (30) days after plans and specifications have been submitted to it, or in any event, if no suit to enjoin the construction has been commenced prior to the completion thereof, approval will not be required and the related covenants shall be deemed to have been fully complied with; however, any building or improvements placed upon a Lot herein that was not presented to the Architectural Control Committee for approval prior to start of construction or placement will be in violation of these restrictions and may be removed by the Architectural Control Committee at the property Owner's expense. If the Property Owners Association or the Declarant pays for such removal, the cost plus interest will become a lien upon the property.

Section 5. Upon submission of the construction plans and specifications and as a condition precedent to the Architectural Control Committee’s consideration of said plans and specifications, the Owner is required to deposit the sum of $2,000.00 with the Architectural Control Committee as security for the costs of any repairs to the roads in the subdivision caused by such builder, or any damage by builder or Owner, or Owner’s subcontractor, to any roads, culverts, fences, bridges, etc., as a result of entering Project to clear off trees or brush. Upon determination by the Architectural Control Committee that no repairs are necessary the deposit will be refunded. To the extent that repairs are required, the deposit will be applied to such repairs with the unused portion of the deposit, if any, to be refunded to the Owner. To the extent that cost of repairs exceeds the deposit, the Owner shall be liable for such excess cost. Payment of such excess shall be secured by a lien against homeowner’s property.

Section 6. | The Committee shall have the right, exercisable at its discretion, to grant variances to the architectural restrictions in specific instances where the Committee in good faith deems that such variance does not adversely affect the architectural and environmental integrity of the Subdivision or the common scheme of the development. If the Committee shall approve a request for variance, the Committee may evidence such approval, grant its permission for such variance, only by written instrument, addressed to the Owner of the Lot(s) relative to which such variance has been requested, describing the applicable restrictive covenant(s) and the particular variance requested, expressing the decision of the Committee to permit the variance, describing (when applicable) the conditions on which the variance has been approved and signed by majority of the then members of the Committee. If any such variances are granted, no violation of the provisions hereof shall be deemed to have occurred with respect to the matter for which the variance is granted; however, the granting of a variance shall not operate to waive any of the provisions hereof for any purpose except as to the particular property and particular provisions hereof covered by the variance, nor shall the granting of any variance affect in any way the Owner’s obligation to comply with all governmental laws and regulations affecting the Lots and with the Subdivision Plat. Failure by the Committee to respond within thirty (30) days to a request for a variance shall operate as denial of the variance.

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Section 7. No approval of plans and specifications and no publication or designation of architectural standards shall ever be construed as representing or implying that such plans and specifications will result in a properly designed structure or satisfy any legal requirements. Further, no person exercising any prerogative of approval or disapproval by the Committee shall incur any liability by reason of the good faith exercise thereof.

Section 8. No action or failure to act by the Committee or by the Board of Directors shall constitute a waiver or estoppel with respect to future action by the Committee or Board of Directors with respect to the construction of any improvements within the Project. Specifically, the approval by the Committee or Board of Directors of any such residential construction shall not be deemed a waiver of any right or an estoppel to withhold approval or consent for any similar residential construction or any similar proposals, plans, specifications, or other materials submitted with respect to any other residential construction by such person or other Owner.

Section 9. No member of the Committee, the Association Board of Directors, their successors or assigns, or the Declarant shall be liable for any loss, damage or injury arising out of or in any way connected with the performance of the duties of the Committee. The Committee’s approval of any improvement shall not imply approval of the improvement from the standpoint of safety, whether structural or otherwise, or a determination of compliance with building codes or other governmental laws or regulations.

ARTICLE IV

USE RESTRICTIONS

Section 1. _ All tracts in this Project are designated as residential home sites for single family dwellings.

Section 2. | Any dwelling constructed on non Lakefront Lots must have a floor plan of not less than: 2400 square feet; 2800 square feet on one-story Lakefront Lots; and 3000 square feet on two-story Lakefront Lots, exclusive of open or screened porches, terraces, patios, driveways, carports and garages, and shall be constructed of at least standard frame construction. If such a building is set on blocks or piers, it shall have an outside or perimeter beam of brick or concrete. Any such structure must be completely dried in within 6 months of beginning of construction.

Section 3. No structure of a temporary character, trailer, basement, tent, shack, garage or other outbuilding shall be used on any tract at any time as a residence, either temporarily or permanently. Outbuildings shall be permitted in the Project. Storage buildings may not be utilized as residences on the tract. The Owner may place a servants or guest house on the property without conforming to the square footage requirements so long as the building otherwise conforms to these restrictions; however, no such dwelling will be permitted prior to construction of the primary dwelling. Any building of any type must be approved by the Architectural Control Committee the same as a dwelling.

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Section 4. No tract shall be used or maintained as a dumping ground for rubbish or trash, and no garbage or other waste shall be kept except in sanitary containers. All equipment for the storage and disposal of such materials shall be kept in a clean and sanitary condition.

Section 5. Animals A. One horse may be kept and maintained on any tract under the following conditions:

(1) No horse shall be allowed to run loose upon the streets or commons.

(2) All horses shall be kept enclosed by suitable fencing at the rear of the tract.

(3) Though horses are permitted, public stables are not permitted.

B. No swine may be bred, kept or maintained on any tract in this Project.

C. No chickens, turkeys, ostrich, emu or other poultry may be kept or raised in this Project

Dz. Cats and dogs as household pets are permitted, the commercial breeding of such

animals is not permitted.

E. The premises shall be maintained in such a manner as to prevent health hazards and shall not be offensive to neighboring tracts. Should any animal, including but not limited to horses, cats and dogs, become offensive to the neighborhood, that offense constitutes a violation of these covenants.

Section 6. | No abandoned or inoperative automobile, other vehicle or trailer shall be permitted to remain on any tract. This is not to be construed to mean that personal campers, boats, tractors, trailers, recreational vehicles, etc. in good and operational condition may not be kept on premises; however, campers, trailers, boats, tractors and utility vehicles of every nature must be kept on the rear one-half of the premises or in a garage, shed or other suitable building approved by the Architectural Control Committee.

Section 7. | No commercial activity shall be conducted on any tract other than the commercial reserves.

Section 8. No tract may be used to rent space to campers, recreational vehicles, trailers or other units for occupancy or storage or to maintain stables, kennels or space for rental to others.

Section 9. No dwelling or garage shall be placed nearer to any property line than the building line depicted in the plat or fifteen (15) feet from adjacent property Owner's line, whichever is greater. Furthermore;

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A. No barn, shed or outbuilding designed for storage shall be placed nearer to the front or street line than two hundred (200) feet, nor nearer the side line than the line depicted in the plat or 15 feet from adjacent property Owner’s line, whichever is greater.

B. No barn, shed or building designed and/or used for live-stock will be located nearer than twenty-five (25) feet to the dwelling proper of any adjacent property Owner's dwelling, provided said adjacent dwelling is set no farther away from the street line than two hundred (200) feet.

Cc. Construction of improvements must be completed within six (6) months from date of commencement of construction. Landscaping approved by the Architectural Control Committee must be completed within ninety (90) days after completion of construction.

D. All residential driveways must enter from the subdivision street and not by way of F.M. 1488.

Section 10. All Lot Owners, at their expense, shall provide for the disposal of waste material through an anaerobic system or other comparable disposal system approved by the appropriate governmental authority. No private water wells are permitted on any residential Lot.

Section 11. Any tract, as platted in this Section, may be resubdivided or consolidated with another tract or fraction thereof with the prior written approval of the Declarant or the Committee and in the event that any Owner owns more than one tract, those tracts may be resubdivided or consolidated into a single tract with the prior written consent of the Declarant or the Committee so long as no tract resulting from the resubdivision or consolidation of one or more tracts is less than one (1) acre in size. The Developer, its successors or assigns, may replat tracts for better utilization and function. However, any such replat will be subject to approval by all governmental authorities having jurisdiction, and all purchasers of tracts herein hereby waive the right or necessity of approval.

No residential tract as herein platted, replatted, or consolidated will be utilized for more than one primary single family residence and one single family guest or servants house.

For purposes of this Section of this Project, single family residence means one detached, site-built residential house designed to be occupied by one family only.

Section 12. All walls, fences and hedges must be approved by the Committee. Except as otherwise provided herein, no walls or fences shall be erected or maintained nearer to the front of any Lot than the front of the residential dwelling constructed on the Lot or, on corner Lots, nearer to the side Lot line than the side Lot building line parallel to the side street as shown on the

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recorded plat. Fences from the front of the residential dwelling to the street and parallel to the street shall be constructed of white PVC with three rails. All walls and fences on waterfront Lots must be of ornamental iron construction and shall be black in color and of a design that conforms to the Committee’s predetermined plan for such fences. The Committee may grant variances upon written request by the Owner. Plasters which are in harmony with the main residential structure shall be used in conjunction with all ornamental iron fences.

All wooden fences shall be constructed of material to be approved by the Committee. All wooden fences exposed to view from the street shall be built so that the finished side faces the street. Wooden fences are discouraged where views to any lake are hindered. No chain link fences shall be erected, placed, or permitted to remain on any residential Lot. No fence shall be installed which will impede the natural flow of water across the Lot. Ownership of any wall, fence or hedge erected as a protective screening on a Lot shall pass with title to the Lot, and it shall be the Owner’s responsibility to maintain said protective screening thereafter.

Section 13. No oil drilling or development operations, oil refining, quarrying or mining operations of any kind shall be permitted upon or in any Lot, nor shall oil wells, tanks, tunnels, mineral excavations or shafts be permitted upon or in any Lot. No derrick or other structure designed for use in boring for oil or natural gas shall be erected, maintained or permitted upon any Lot in this Project. Except within the areas designated as drill site locations on the plat, and easements related thereto, no commercial oil drilling, oil development operations, oil refining, quarrying or mining operation of any kind shall be permitted upon or in any Lot, nor shall any wells, tanks, tunnels, excavation or shafts be permitted. Provided, however, that this provision shall not prevent Owners of the outstanding mineral interests from development pursuant to their respective mineral interests.

Section 14. Culverts, Bridges, and Crossings. No culvert, bridge, or crossing may be installed by Lot Owners unless approved by the proper governmental authorities and the Architectural Committee. Conformance to size and grade requirements are mandatory. All culverts will be installed with headers, or retainers on each end to prevent erosion and dress culvert ends and must be approved by the Architectural Control Committee prior to installation of culvert or wings.

Section 15. Signs. No "For Sale” signs will be placed upon any vacant Lot by individual Lot Owners. The Property Owners Association, or its designated authority has the right to remove or dispose of any such signs. No other signs are permitted without approval of the Declarant or the Architectural Control Committee.

Section 16. Prior to beginning construction on any house or building on any Lot herein, Owner

will install a driveway from street to slab of at least four (4) inches of compacted rock, gravel, crushed limestone or better to prevent tracking of mud onto streets.

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Section 17. Should any property Owner herein violate these covenants and restrictions, the Property Owners Association and the authority created herein will fifteen (15) days after notice of the violation to the Owners, have the power and authority to file suit to enforce compliance. The Association will be empowered to charge as a special assessment all cost of time and expenditures, including legal fees, member's time, meeting fees, costs of removal of improvements in violation, and pay all related expenses. This special assessment will attach to the property upon which the violation rests and will become a lien as provided in these covenants for assessments and liens.

Section 18. Any on-going violation may be prosecuted on an on-going basis with the goal of the Property Owners Association being to correct the violation by whatever means is necessary. Property Owners Association cure of violations is authorized at the violating property Owner's expense.

Section 19. Storage of equipment, materials, or any other product, or pasturing of livestock is strictly prohibited prior to construction of primary residence.

Section 20. Developer's Rights and Reservations. Developer shall have, retain and reserve the right to construct additional improvements in common areas, use common areas in promotion and marketing of the property and any annexable area, grant, create and utilize easements, whether temporary or permanent, for access, utilities, pipelines, drainage, water, and sanitary sewer. Such easements shall be located within the Project over and across roadways, Lots, other easements in common areas at the Developer's sole discretion. Developer further reserves the right of annexation of additional residential property and common areas outside of the Project without the consent of the Owners or any other party.

Section 21. Flowage Easement. A flowage easement on, over and across that portion of the Lakefront Lots in the Project that abut any water impoundment is hereby reserved for the Developer and/or the Property Owners Association for the following purposes:

A. The right to overflow, flood or cover such portion of the Lakefront Lots in the Project at anytime or times hereafter, with flood water, slack water or back water caused by the construction, maintenance and operation of the dam for the Lake and the reservoir for the storage of water created by the construction of the Lake.

B. The right to enter upon said Lakefront Lots at any time or times hereafter and do whatever is reasonable and necessary in the sole discretion of the Developer and/or the Property Owners Association to maintain and operate such Lake and to prevent the draining or dumping of refuse sewage or other material] into such reservoir

Cc. The right to prevent the construction of or to move any obstruction, building structure, improvement or other thing located on any such Lakefront Lot, which

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has not been approved by the Architectural Control Committee and the regulatory authorities for Montgomery County, Texas.

The Owner of any Lakefront Lot shall have the right to use the above described portion of said Lakefront Lot jointly with the Developer and/or the Association, however, the Owner assumes all risk of all loss or damage to Owner’s structures or property thereon in any way arising or resulting from this flowage easement or the maintenance and operation of the above mentioned dam and Lake reservoir by the Developer and/or the Association. Developer shall have the option of conveying the underlying land contained in such easement to the Property Owners Association.

Section 22. Lakefront Easement. The Developer grants and conveys an exclusive perpetual easement to the Owners of Lots that adjoin the Lake, over and upon that portion of the shoreline of said Lake that lies and is situated between the rear lot boundary line or any Lot, in any section of Thousand Oaks Estates Subdivision, which adjoins the Lake and the actual pool level or water line of said Lake. The Owner of any Lot in any section of the Thousand Oaks Estates Subdivision which adjoins the Lake shall have the exclusive right to use, keep and maintain any portion of the shoreline of said Lake situated adjacent to the rear boundary line of his Lot and between the actual pool level of the Lake and said rear boundary line as though the side Lot lines were extended to the actual pool level of the Lake. The right to use said perpetual easement area shall be exclusive to each Owner of Lots which adjoin the Lake and no other Owner in the Project shall be entitled to use said shoreline easement area. Neither the Developer, the Property Owners Association nor their assigns shall be responsible to any such Owner of a Lot given this exclusive perpetual easement for damage or loss of any improvement placed upon this easement and the Owner assumes all risk of loss or damage to any improvements placed upon this easement and the Owner assumes all risk of loss or damage to any improvements placed in said easement area by Owner. The Developer, its successors and assigns, reserve the right to flood and inundate all or any portion of the easement area herein granted with normal or flood waters created by the maintenance and operation of the Lake. It is understood and agreed that the exclusive perpetual easement herein granted shall be a covenant running with each Lot of any section of the Thousand Oaks Estates Subdivision which adjoins the Lake. Further, each Owner, by accepting this exclusive perpetual easement, shall indemnify and forever hold harmless the Developer, its successors and assigns, from and against any and all damages or loss arising out of or connected with the use of and improvements on this easement area which may arise as a result of the maintenance and operation of the Lake by the Developer and/or the Property Owners Association, their successors and assigns. This exclusive perpetual easement shall also be subject to the Flowage Easement set forth in Section 22 hereof.

Section 23. Use of Lake. The use of a Lake by abutting Owners and their guests shall be subject to the Exclusive Perpetual Easement granted to Owners of Lots adjoining said Lake as set forth in Section 23 hereof. The use of the Lake shall be permitted and regulated by the Developer and the Property Owners Association and any Owner’s failure to comply with such rules and regulations regarding use of the Lake shall allow the Developer or Property Owners Association,

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as the case may be, to suspend said Owner’s use privileges of the Lake. Further, the Lake shall be subject to the following rules and regulations:

A. No jet boats, pontoon boats or boats in excess of 12 feet or canoes in excess of 17 feet shall be permitted on the Lake; and

B. The Developer, and the Board of Directors of the Property Owners Association, shall have the right and authority to amend or modify these Rules and Regulations for the Lake in the event it deems such amendment or modification to be in the best interest of the Project ; and

Cc. The violation of any of these Rules and Regulations for the lake shall be cause for suspension of the violator’s right to use the Lake and other recreational facilities in the Project for a period as may be determined by the Board of Directors of the Association.

Section 24. Lakefront Lots: Construction of Pier or Dock. No pier, dock, boat slip, fence or other structure shall be constructed on any Lot other than Lakefront Lots that adjoin any Lake. Any such pier, deck, boat slip, fence or other structure shall be subject to Architectural Control Committee approval in its sole discretion.

Section 25. Timing of Construction. Construction of any dwelling unit on any Lot must be commenced within three (3) months of approval of construction plans and specifications by the Architectural Control Committee and in no event later than thirty-six (36) months after acquisition of the Lot by the initial Owner from the Declarant. Completion of construction of any such improvements must be accomplished within twelve (12) months following the commencement of construction. For the purposes hereof, the term “commencement of construction” shall be deemed to mean the date on which the first foundation forms are set. Failure to commence construction in a timely manner shall allow the Declarant the option to repurchase the Lot from the Owner for its original purchase price. The Declarant’s option to repurchase shall be exercised by the tender of an earnest money contract containing the usual provisions for a real estate purchase in Montgomery County, Texas and providing for a closing within thirty (30) days. The Declarant’s repurchase option shall expire at the end of twelve (12) months following Owner’s failure to commence construction in a timely manner. After commencement of construction, the work thereon shall be prosecuted diligently to the end that the same shall not remain in a partly finished condition any longer than reasonably necessary for completion thereof. The foregoing periods shall be extended in the event of and only for the duration of delays due to strikes, war, acts of God or other causes beyond the reasonable control of the builder or Owner. Additionally, failure to complete construction in a timely manner shall allow the Association to enter upon the Lot and complete the construction at the cost and expense of the Owner of the Lot. All sums owing to the Association by reason of the foregoing shall constitute an assessment and shall be secured by a lien in the same manner as maintenance charges provided for in Article VIII hereof.

Page 14 of 21 in the recorded document

Section 26. Architectural Control. No improvements shall be erected, placed, repaired or altered on any Lot until the construction plans and specifications and a plot plan showing the location of the improvements thereon have been approved by the Architectural Control Committee. Plans shall be reviewed with respect to harmony with the existing structures, design, color, location with respect to topography and finished grade elevation in compliance with minimum construction standards provided for herein. The Architectural Control Committee is authorized to grant variances if the variance is reasonable and if the structure is not inconsistent with the general scheme and harmony of the development.

ARTICLE V.

OWNER'S OBLIGATION TO REPAIR

Each Owner shall, at his sole cost and expense, repair and maintain his residence, and other buildings on his tract, keeping the same in a condition comparable to the condition of such building at the time of its initial construction, excepting only normal wear and tear.

ARTICLE VI.

MEMBERSHIP IN ASSOCIATION: VOTING RIGHTS

Section 1. . Membership. Every Owner of a tract shall be a member of the Association. Membership shall be appurtenant to and may not be separated from ownership of a tract.

Section 2. Developer. For purposes of voting, Developer/Declarant will be construed as an Owner and member with the same voting privileges of one (1) vote per Lot owned, and Developer is entitled to one vote for each Lot sold so long as Developer retains a financial interest or any ownership in this development.

Section 3. Votes Per Member. All Owners shall be entitled to one vote for each Lot owned.

When more than one person holds an interest in a given tract, all such persons shall be members and the vote for such tract shall be exercised as they may determine among themselves. In no event shall more than one (1) vote be cast with respect to any Lot owned by such members.

Section 4. | Voting Procedure. Voting may be by petition as prescribed for certain specific procedures herein. However, unless otherwise specifically stated herein, all votes will be by ballots mailed to the last known address of each member. These ballots must be mailed back by the member within thirty (30) days to a certified public accountant designated by the Declarant or the Association. The public accountant will tally all votes and certify the results to be true. Each vote will be identified by a Lot, block and section number, stating the Lot or Lots owned and the number of votes represented thereby. Any ballot vote must allow no less than a thirty (30) day period between the mailing of the ballots and the return of the mailed ballots. In the event that a certain percentage of votes is necessary for approval, that percentage shall be calculated of the votes cast by members.

Page 15 of 21 in the recorded document

Section 5. Boards. Declarant shall initially appoint a five (5) member Board of Directors of the Association with terms running one to five years, who shall serve until their respective terms expire. On the anniversary date of such appointments, and the same date of each following year, the members of the Association shall meet for the purpose of electing a member or members of the Board of Directors for that year as set forth herein. Such Board of Directors shall have the full powers and duties as may be reasonably necessary to carry out the purposes and duties of the Association as provided herein. The above stated terms and election date may vary fifteen (15) days before or after said date at the option of the Board. Mail ballots will be provided for all voters who may return the ballots within the prescribed time and manner or who may bring the completed ballots to the above mentioned mecting.

ARTICLE Vil.

ASSESSMENTS

Section 1. Thousand Oaks Estates Subdivision Section 3 Use of Maintenance Fund. Each Lot shall be subject to an annual maintenance charge to be used for the purpose of maintaining all open space and Common Areas, maintenance of private streets, paths, parks, esplanades, street lights, storm water facilities, vacant lots, fogging, employing policemen and workmen, paying ad valorem taxes on all Common Areas, costs of administration of the fund and other purposes necessary or desirable in the opinion of the Administrator of such fund to maintain or improve the Property of which it considered to be a general benefit to the Owners or occupants of the Project covered by these restrictions. Such fund may also be used for the purpose of enforcement of all covenants and restrictions of this section or subsequent sections of Thousand Oaks Estates Subdivision. The amount of the maintenance charge shall be set by the Administrator of the fund from time to time subject to the limitations contained herein.

Declarant shall collect and maintain control over the maintenance fund and administer same until all of the Lots in Thousand Oaks Estates Subdivision are sold by Deed or Contract or until January 1, 2020, whichever comes first, or at any earlier time if Declarant so elects. After transfer, no association, group, corporation, individual or entity other than the Association formed pursuant to these restrictions shall be authorized to collect and administer the maintenance fund.

The initial maintenance charge shall be $360.00 per year. The maintenance charge shall be paid annually in advance by January 1 of each year. The maintenance charge will not accrue against any Lot in which the legal and/or equitable title is vested in Declarant, notwithstanding that a Lot may have been previously sold by a Deed or Contract and title thereto reverted back to Declarant.

During the time that such fund is administered by the Declarant, the charge may be increased, but no morc than once each twelve (12) months and no increase shall be more than twenty percent (20%) of the existing charge. However, after the Association assumes administration of responsibilities, the Association may adjust such rates pursuant to the rules and regulations of the Association. The annual assessment per Lot may be increased, but no more than once each twelve (12) months and no increase shall be more than $25.00 per year up to a maximum of $500.00 per year. Any additional increase beyond the maximum of $500.00 per year must be approved by eighty percent (80%) of the board of directors of the Association. Interest on past due charges shall accrue at the highest rate allowable by law from date of delinquency. The payment of such maintenance fund shall

Page 16 of 21 in the recorded document

be secured by a vendor's lien to insure payment of such maintenance charge in accordance with the provisions of law. In the event it becomes necessary to employ legal counsel to collect past due maintenance charges, such delinquent Lot Owners shall be responsible for reasonable attorney’s fees and other reasonable attorney’s fees and other reasonable costs incurred in such collection efforts including all costs of court in any legal proceeding. No Owner may waive or otherwise escape liability for the maintenance charge provided for herein by non-use of any common areas or abandonment of his Lot.

The Administrator of the fund shall have the sole discretion as to how such money shall be used to comply with the provisions of this Article. During all times that Declarant is the Administrator of such funds it shall maintain the proceeds in an account separate and apart from all other accounts of Declarant and shall keep accurate records of all receipts and disbursements. In the event Declarant is compelled to advance its own funds to defray expenses of maintenance of the facilities and Properties to be maintained by the fund, Declarant shall be entitled to repayment at such time as the fund is able.

Section 2. Enforcement of Maintenance Fee Collection. Each such assessment not paid when due shall incur a late fee of Twenty-Five and No/100 Dollars ($25.00) or ten percent (10%) of the amount due, whichever is greater. Each such assessment and late fee, if not paid when due, and interest at the highest legal rate permitted by law together with costs of collection, including reasonable attorney’s fees, shall be the personal obligation of the Owner against whom they were assessed and shall be secured by a lien as provided herein. To secure the payment of the maintenance fund established hereby and to be levied on individual Lots, there shall be reserved in each deed (whether specifically stated therein or not) by which the Declarant shall convey such Lots, a vendor’s lien for the benefit of the Administrator of the fund, whether Declarant or Association. Said lien is to be enforceable through appropriate proceedings at law by such beneficiary; provided, however, that each such lien shall be secondary, subordinate, and inferior to all liens, present and future, given, granted and created by or at the instance and request of the Owner of any such Lot to secure the payment of monies advanced or to be advanced on account of the construction of improvements on any such Lot to the extent of any such maintenance fund charge accrued and unpaid prior to foreclosure of any construction lien.

If an assessment is not paid within thirty (30) days after the due date, it shall bear interest from the due date until paid at the lesser of (i) ten percent (10%) per annum or (ii) the maximum rate permitted by law, and the Association may bring an action at law against the Owner personally obligated to pay the same, or foreclose the lien herein retained against the Lot. Interest, costs and reasonable attorneys’ fees incurred in any such action shall be added to the amount of such assessment or charge. In addition to the vendor’s lien described above, and as additional security for payment of the assessments hereby levied, each Owner of a Lot, by such party’s acceptance of a deed thereto, hereby grants the Association a lien on such Lot which may be foreclosed on by non-judicial foreclosure and pursuant to the provisions of Section 51.002 of the Texas Property Code (and any successor statute); and each such Owner hereby expressly grants the Association a power of sale in connection therewith. The Association shall, whenever it proceeds with non-judicial foreclosure pursuant to the provisions of said Section 51.002 of the Texas Property Code and said power of sale, designate in writing a Trustee to post or cause to be posted all required notices of such foreclosure sale and to conduct such foreclosure sale. The Trustee may be changed at any time and

Page 17 of 21 in the recorded document

from time to time by the Association by means of a written instrument executed by the President or any Vice-President of the Association. In the event that the Association has determined to non-judicially foreclose the lien provided herein pursuant to the provisions of Section 51.002 of the Texas Property Code and to exercise the power of sale hereby granted, the Association shall mail to the defaulting Owner a copy of the Notice of Trustee’s Sale not less than twenty-one (21) days prior to the date of which sale is scheduled by posting such notice through the U. S. Postal Service, postage prepaid, registered or certified, return receipt requested, properly addressed to such Owner at the last known address of such Owner according to the records of the Association. If required by law, the Association or Trustee shall also cause a copy of the Notice of Trustee’s Sale to be recorded in the Real Property Records of Montgomery County, Texas. Out of the proceeds of such sale, there shall first be paid all expenses incurred by the Association in connection with such default, including reasonable attorneys’ fees and a reasonable trustee’s fee; second, from such proceeds there shall be paid to the Association an amount equal to the amount of default; third, any amounts required by law to be paid before payment to the Owner; and fourth, the remaining balance shall be paid to such Owner. Following any such foreclosure, each occupant of any such Lot foreclosed on and each occupant of any improvements thereon shall be deemed to be a tenant at sufferance and may be removed from possession by any and all lawful means, including a judgment for possession in an action of forcible detainer and the issuance of a writ of restitution thereunder.

Section 3. Term of Maintenance Fees. The above maintenance charges and assessments will remain effective for the full term (and extended term, if applicable) of these covenants and restrictions.

Section 4. Collection after Default by Purchase. It is specifically stated and agreed that any Lot sold to persons or entities by the Declarant by contract for sale of land, or deed with lien and note, or other instrument and the purchaser defaults in the contract or note payments in any manner and said Lot is repossessed, foreclosed or such contract canceled by Declarant, its successors or assigns, the Association will release its right to collect the past due maintenance charges, assessments and penalties on such Lots from the Declarant. Nothing herein contained shall relieve the purchaser in default from whom the Lot was repossessed from his personal obligation to pay such delinquent charges, assessments and penalties to the Association.

Section 5. Exempt Property. All properties dedicated to, and accepted by, a local public authority and all properties owned by a charitable or nonprofit organization exempt from taxation by the laws of the State of Texas shall be exempt from the assessments and charges created herein. Notwithstanding the foregoing, no Lot or improvements thereon which is used as a residence shall be exempt from said assessments and charges.

Section 6. Savings Clause. All agreements between any Owner and the Association and/or Declarant, whether now existing or hereafter arising, and whether written or oral, and whether implied or otherwise, are hereby expressly limited so that in no contingency or event whatsoever shall the amount of interest collected, charged, or received by the Association, its agent and/or Declarant for the payment or performance of any covenants or obligations contained herein or in any other document related hereto exceed the maximum amount of interest permitted to be collected, charged, or received under applicable law. If from any circumstance whatsoever, the fulfillment of any provision hereof or of such other document at the time performance of such provision shall be

Page 18 of 21 in the recorded document

due, shall involve exceeding the limit of validity prescribed by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the Association, its agent and/or Declarant should ever collect, charge, or receive an amount deemed to be collected, charged, or received under applicable law, such amount which would be excessive interest shall be applied to the reduction of the principal amount owing on such obligation and not to the payment of interest, or if such excess interest exceeds the principal balance of the assessment or other obligation, the excess shall be refunded to the Owner or other obligor. The right to accelerate the maturity of any assessment or other obligation owing to Declarant or the Association shall not include the right to accelerate the maturity of any interest which has not otherwise accrued on the date of such acceleration, and the Declarant and the Association do not intend to collect any unearned interest in the event of acceleration. All sums paid or agreed to be paid by any Owner for the use, forbearance or detention of any indebtedness to the Association and/or Declarant shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full stated term of such indebtedness until payment in full so that the actual rate of interest on account of such indebtedness is uniform throughout the term thereof. The terms and provisions of this paragraph shall control and supersede any other provision of this Declaration and any other agreement between any Owner and the Association and/or Declarant. The maximum lawful rate shall be determined by utilizing the indicated rate ceiling from time to time in effect pursuant to Tex. Rev. Civ. Stat. Art. 5069-1.04, as amended. In no event shall the provisions of Chapter 15 of the Texas Credit Code (Tex. Rev. Civ. Stat. Art. 5069-15.01, et seq.) be applicable to any assessment or obligation.

ARTICLE VIII.

UTILITY STANDBY CHARGES

Section 1. Should the requirement for utility standby charges become necessary for the installation of any utility or service, the Association shall have the right to establish such standby charges and in such case there shall be levied against every individual tract, a standby charge not to exceed the exact cost per month to the Association. Such charge shall be fixed from time to time by the Board of Directors of the Association and shall be due and payable in monthly installments in advance, or as otherwise required. The Association hereby reserves unto itself, its successors and assigns and establishes and imposcs a lien, securing the assessment as herein set forth for the prescribed utility standby charge. This lien may be foreclosed upon after notice of delinquency to the Owner of any tract, as and in the same manner as is provided for the non-judicial foreclosure of a mortgage upon real property under the laws of the State of Texas, the same as though the Association had retained a vendor's lien and possessed a deed of trust and note against said tracts. Any such action of foreclosure will entitle the lien holder to reasonable attorney's fees and other allowed costs and penalties. In addition to this provision, the Association may pursue any other procedures of collection as may be provided under the law.

Section 2. _It is specifically stated herein that all property held by the Developer, its successors and assigns for sale or resale within this Project is hereby totally exempt from any and all of the requirements of this Article and no lien shall become effective on any property herein until said property is sold to a bona fide purchaser by contract or deed.

Page 19 of 21 in the recorded document

o21-10-0802

Section 3. Such standby charge, the liens securing the payment thereof, and the right and responsibility for the enforcement thereof are hereby reserved and given over to the Association. Such charge, and all liens securing the payment thereof, except for delinquents, shall be released and discharged automatically (without further action) on any tract upon the conveyance of any tract to the initial person or persons who will reside on the property and the completion of a dwelling or residence on the property and tie into the utility with continued service. Such completion may be evidenced by the execution by the creation and recordation of the first lien mortgage or deed of trust on the improved property or by the execution of a release by the holder of said lien or by the Board of Directors of the Association, of the lien created hereunder to secure the standby charge, however, prior to same any and all due or past due charges and fees must be paid in full.

Section 4. The Association may assign or pledge to any utility provider the right of assessment and security for standby charges. In such instance, the standby charges will be set at a rate in conformance with published or approved tables of any state agency or authority, if any. In the absence of such an authority, the rates will conform to normal and usual rates. This authority granted and created in this Section is reserved unto Developer until the creation of the Association is accomplished.

ARTICLE IX.

LAW ENFORCEMENT AND STREET RIGHTS

Section 1. Traffic Law. Notwithstanding the fact that the roads and commons in this Project are not dedicated to the public, but only to the property Owners on the Project as easements, it is hereby stipulated that the Commissioners Court or other public governing body will have the full authority to establish speed limits or other traffic laws and rules, and penalties for violations thereof upon the streets of this Project, and the law enforcement officers of the County or of the State of Texas or any other body having such authority, may enter upon this Project to enforce the speed limits as set by the County Commissioners Court or any other entity or authority, just as though said roadways were public.

Section 2, Public Law. Notwithstanding the fact that commons in the Project are private and dedicated only to the property Owners within the Project, it is hereby stipulated that any law enforcement officer, City, County, State, or Federal, is hereby authorized to enter upon the premises of the Project for all purposes just as though the Project commons were dedicated unto the public, and every law enforcement officer will have the same rights, privileges and duties within the boundaries to this Project as he would in any subdivision where the streets and other commons and facilities were dedicated to the public.

Page 20 of 21 in the recorded document

ARTICLE X.

GENERAL PROVISIONS

Section 1. Declarant, the Association, or any Owner shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, easements reservations, liens, and charges now or hereafter imposed by the provisions of this declaration. Failure by Declarant, the Association, or by any Owner to enforce any covenant, or restriction herein contained shall in no event be deemed a waiver of the rights to do so thereafter.

Section 2. Invalidation of any one of these covenants or restrictions by judgment of court order shall in no way affect any other provisions, which shall remain in full force and effect.

Section 3. Covenants and restrictions may be amended by the affirmative vote of not less than seventy-five percent (75%) of the Owners. Upon approval by seventy-five percent (75%) of the Owners, the Board of Directors of the Association shall execute, acknowledge, and record an amendment document in the Official Public Records of Real Property in Montgomery County, Texas. Voting on amendments to the covenants and restrictions shall be in accordance with the provisions of Article VI hereof.

Section 4. _ No breach of any of the conditions herein contained or re-entry by such breach shall defeat or render invalid the prior lien of any mortgage made in good faith and for value as to the Project or any tract therein; provided, however, that such conditions shall be binding on any Owner, except Developer, whose title is acquired by foreclosure, trustee's sale, or otherwise.

Section 5. | The covenants and restrictions of this amended declaration shall run with and bind the land, and shall inure to the benefit of and be enforceable by the Association or any member thereof or any Owner for a period of twenty-five (25) years from the date hereof and thereafter shall continue in effect for additional periods of ten (10) years, unless cancelled or amended by written vote by the then Owners of at least seventy-five percent (75%) of the Lots.

Section 6. —_ Declarant shall have the right during the term of the continuation of this Agreement to add to the real property within the Project any area tracts and the Owners of the tracts within such added portion shall become members of the Association on the same terms and conditions subject to the same restrictions as apply to Owners of tracts within the original Project.

ARTICLE XI.

ANNEXATION

Additional residential property and restricted or common areas may be annexed into the jurisdiction of the Association upon the favorable vote of two-thirds (2/3) of the membership votes entitled to be cast by each membership class at a meeting of the Members or otherwise. Annexation of additional property into the jurisdiction of the Association shall become effective on the date an instrument signed and acknowledged by the Owner of said annexed property and the appropriate

Page 21 of 21 in the recorded document

annexing authority (either Declarant or the Association), is filed for record in Montgomery County, Texas evidencing the annexation. Each such instrument evidencing the annexation of additional property shall describe the portion of the property comprising the Lots and any restricted or common areas. The funds resulting from any assessment, whether annual or special, levied against any property hereinafter annexed into the jurisdiction of the Association may be combined with the funds collected from the Owners of Lots in the Subdivision and may be used for the benefit of all property

and all Owners in the manner hereinabove provided.

ab EXECUTED THISS __ day of FEBRUARY _, 2002.

1488 LAND DEVELOPMENT, INC.

ZF

Michael Fitzmaurice, President

ACKNOWLEDGMENT

THE STATE OF TEXAS §

COUNTY OF HARRIS §

This instrument was acknowledged before me on the Sth of FEBRUARY

2001, by Michael Fitzmaurice, President of 1488 LAND DEVELOPMENT, INC.

“ares | Neg y, Bebo

My Commission Expires

September 15, 2004. NOTARY PUBLIC, STATE OF TEXAS

STATE OF TEXAS

COUNTY oF MONE instrument was is tied a File Number Sequence ‘on the date a a

sramped ma and was duly RE! Hq the 09 heretic Records of Heal Property 2

ry County, Texas

FEB 13 2002

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County Clerk Monigomery County, Texas