DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS FOR HIGH MEADOW. Denton County, Texas. Declarant. MM High Road, LLC

DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS FOR Denton County, Texas Declarant MM High Road, LLC

DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS FOR TABLE OF CONTENTS PAGE ARTICLE 1 DEFINITIONS... 1 ARTICLE 2 PROPERTY SUBJECT TO DOCUMENTS... 3 2.1. PROPERTY... 3 2.2. RESTRICTIONS, EASEMENTS & PLAT DEDICATIONS... 4 2.3. ADDITIONAL PROPERTY... 4 2.4 CHANGE IN CIRCUMSTANCE... 4 2.5 CONNEMARA CONSERVATION EASEMENTS & LOT 10... 4 ARTICLE 3 PROPERTY FEATURES... 4 3.1. LAND USE... 4 3.2. SUBJECT TO ALL OTHER DOCUMENTS... 5 3.3. CHANGE OF CIRCUMSTANCE... 5 3.4. STREETS WITHIN PROPERTY... 5 ARTICLE 4 PROPERTY EASEMENTS AND RIGHTS... 5 4.1. GENERAL... 5 4.2. EASEMENT FOR ENTRY & SCREENING FEATURES... 5 4.3. OWNER S EASEMENT OF ENJOYMENT... 6 4.4. OWNER S INGRESS/EGRESS EASEMENT... 6 4.5. OWNER S RIGHT TO BUILD... 6 4.6. RIGHTS OF TOWN... 6 4.7. ASSOCIATION S ACCESS EASEMENT... 7 4.8. UTILITY EASEMENT... 8 4.9. SECURITY... 8 4.10. MINERAL INTERESTS... 8 ARTICLE 5 COMMON AREA... 9 5.1. PRIVATE USE... 9 5.2. OWNERSHIP... 9 5.3. ACCEPTANCE... 9 5.4. CONVEYANCE... 9 5.5. COMPONENTS... 9 5.6. LIMITED COMMON AREA... 10 ARTICLE 6 ARCHITECTURAL COVENANTS AND CONTROL... 10 6.1. PURPOSE... 10 6.2. ARCHITECTURAL CONTROL - CONSTRUCTION OF NEW HOMES... 10 6.3. ARCHITECTURAL CONTROL BY ASSOCIATION... 12 6.4. LIMITS ON LIABILITY... 12 6.5. PROHIBITION OF CONSTRUCTION, ALTERATION & IMPROVEMENT... 12 DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page i

6.6. ARCHITECTURAL APPROVAL... 12 6.7. ARCHITECTURAL GUIDELINES... 14 ARTICLE 7 CONSTRUCTION AND USE RESTRICTIONS... 14 7.1. VARIANCE... 14 7.2. CONSTRUCTION RESTRICTIONS... 14 7.3. LIMITS TO RIGHTS... 14 7.4. SUBJECTIVE STANDARDS... 14 7.5. ASSOCIATION S RIGHT TO PROMULGATE RULES... 14 7.6. ACCESSORY SHEDS PROHIBITED... 15 7.7. ANIMAL RESTRICTIONS... 15 7.8. ANNOYANCE... 15 7.9. APPEARANCE... 16 7.10. BUSINESS USE... 16 7.11. COLOR CHANGES... 16 7.12. DECLARANT PRIVILEGES... 16 7.13. DRAINAGE... 16 7.14. DRIVEWAYS... 16 7.15. FENCES... 16 7.16. FLAGS... 16 7.17. GARAGES... 17 7.18. GARAGE SALES... 17 7.19. GUNS... 17 7.20. HOOPS... 17 7.21. LANDSCAPING... 17 7.22. LEASING OF HOMES... 17 7.23. LIGHTS... 17 7.24. NOISE & ODOR... 18 7.25. OCCUPANCY... 18 7.26. POOLS... 18 7.27. RESIDENTIAL USE... 18 7.28. SCREENING... 18 7.29. SIGNS... 18 7.30. SPECIFIC USES... 19 7.31. TELEVISION... 20 7.32. TEMPORARY STRUCTURES... 20 7.33. TRASH... 20 7.34. VEHICLES... 20 7.35. WINDOW TREATMENTS... 21 7.36. YARD ART... 21 ARTICLE 8 ASSOCIATION OPERATIONS... 21 8.1. THE ASSOCIATION... 21 8.2. BOARD... 22 8.3. MEMBERSHIP... 22 8.4. DECISION-MAKING... 22 8.5. MANAGER... 22 8.6. COMMUNICATIONS... 22 8.7. VOTING... 23 DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page ii

8.8. BOOKS & RECORDS... 23 8.9. INDEMNIFICATION... 23 8.10. OBLIGATIONS OF OWNERS... 23 8.11. NEW HOME SALES... 24 8.12. HOME RESALES... 24 ARTICLE 9 COVENANT FOR ASSESSMENTS... 24 9.1. PURPOSE OF ASSESSMENTS... 24 9.2. PERSONAL OBLIGATION... 25 9.3. CONTROL FOR ASSESSMENT INCREASES... 25 9.4. TYPES OF ASSESSMENTS... 25 9.5. BASIS & RATE OF ASSESSMENTS... 27 9.6. OBLIGATION STARTS AT CLOSING... 27 9.7. DECLARANT OBLIGATION... 27 9.8. ANNUAL BUDGET... 27 9.9. DUE DATE... 27 9.10. RESERVE FUNDS... 27 9.11. DECLARANT S RIGHT TO INSPECT & CORRECT ACCOUNTS... 29 9.12. ASSOCIATION S RIGHT TO BORROW MONEY... 29 9.13. LIMITATIONS OF INTEREST... 29 9.14. HOA SALE FEES... 29 ARTICLE 10 ASSESSMENT LIEN... 30 10.1. ASSESSMENT LIEN... 30 10.2. SUPERIORITY OF ASSESSMENT LIEN... 31 10.3. EFFECT OF MORTGAGEE S FORECLOSURE... 31 10.4. NOTICE AND RELEASE OF NOTICE... 31 10.5. POWER OF SALE... 31 10.6. FORECLOSURE OF LIEN... 31 ARTICLE 11 EFFECT OF NONPAYMENT OF ASSESSMENTS... 32 11.1. INTEREST... 32 11.2. LATE FEES... 32 11.3. COSTS OF COLLECTION... 32 11.4. ACCELERATION... 32 11.5. SUSPENSION OF USE AND VOTE... 32 11.6. MONEY JUDGMENT... 32 11.7. NOTICE TO MORTGAGEE... 32 11.8. FORECLOSURE OF ASSESSMENT LIEN... 32 11.9. APPLICATION OF PAYMENTS... 32 11.10. PUBLICATION OF NAMES... 33 ARTICLE 12 ENFORCING THE DOCUMENTS... 33 12.1. NOTICE AND HEARING... 33 12.2. REMEDIES... 33 12.3. BOARD DISCRETION... 34 12.4. NO WAIVER... 34 12.5. RECOVERY OF COSTS... 35 DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page iii

ARTICLE 13 MAINTENANCE AND REPAIR OBLIGATIONS... 35 13.1. OVERVIEW... 35 13.2. ASSOCIATION MAINTAINS... 35 13.3. AREA OF COMMON RESPONSIBILITY... 35 13.4. OWNER RESPONSIBILITY... 36 13.5. OWNER S DEFAULT IN MAINTENANCE... 37 13.6. FENCES BETWEEN LOTS... 37 ARTICLE 14 INSURANCE... 38 14.1. GENERAL PROVISIONS... 38 14.2. PROPERTY... 38 14.3. GENERAL LIABILITY... 39 14.4. DIRECTORS & OFFICERS LIABILITY... 39 14.5. OTHER COVERAGES... 39 14.6. OWNER S RESPONSIBILITY FOR INSURANCE... 39 ARTICLE 15 MORTGAGEE PROTECTION... 39 15.1. INTRODUCTION... 39 15.2. MORTGAGEE RIGHTS... 40 15.3. LIMITS ON ASSOCIATION S DUTIES... 40 ARTICLE 16 AMENDMENTS... 41 16.1. CONSENTS REQUIRED... 41 16.2. METHOD OF AMENDMENT... 41 16.3. EFFECTIVE... 41 16.4. DECLARANT PROVISIONS... 41 16.5. MERGER... 41 16.6. TERMINATION... 42 16.7. CONDEMNATION... 42 ARTICLE 17 DISPUTE RESOLUTION... 42 17.1. INTRODUCTION & DEFINITIONS... 42 17.2. MANDATORY PROCEDURES... 43 17.3. NOTICE... 43 17.4. NEGOTIATION... 43 17.5. MEDIATION... 43 17.6. TERMINATION OF MEDIATION... 43 17.7. ALLOCATION OF COSTS... 44 17.8. ENFORCEMENT OF RESOLUTION... 44 17.9. GENERAL PROVISIONS... 44 17.10. LITIGATION APPROVAL & SETTLEMENT... 44 ARTICLE 18 GENERAL PROVISIONS... 45 18.1. COMPLIANCE... 45 18.2. HIGHER AUTHORITY... 45 18.3. NOTICE... 45 18.4. CHANGING TECHNOLOGY... 45 18.5. LIBERAL CONSTRUCTION... 45 DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page iv

18.6. SEVERABILITY... 45 18.7. CAPTIONS... 45 18.8. INTERPRETATION... 46 18.9. DURATION... 46 18.10. PREPARER... 46 18.11. APPENDIXES... 46 SIGNED AND ACKNOWLEDGED... 47 APPENDIX A DESCRIPTION OF SUBJECT LAND... A-1 APPENDIX B CONSTRUCTION SPECIFICATIONS... B-1 APPENDIX C DECLARANT RIGHTS & RESERVATIONS... C-1 C.1. GENERAL PROVISIONS... C-1 C.2. DEFINITIONS... C-1 C.3. DECLARANT CONTROL PERIOD RESERVATIONS GOVERNANCE... C-2 C.4. DECLARANT CONTROL PERIOD RESERVATIONS FINANCIAL... C-3 C.5. DEVELOPMENT PERIOD RESERVATION... C-4 C.6. DIFFERENT STANDARD... C-8 C.7. RELATIONSHIP WITH BUILDERS... C-8 C.8. COMMON AREAS... C-8 C.9. SUCCESSOR DECLARANT... C-8 APPENDIX D PURCHASERS 12 COVENANTS DURING DEVELOPMENT PERIOD... D-1 APPENDIX E LIENHOLDER CONSENT... E-1 DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page v

DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS FOR This Declaration of Covenants, Conditions & Restrictions for High Meadow is made by MM High Road, LLC, a Texas limited liability company ( Declarant ), on the date signed below. Declarant owns the real property described in Appendix A of this Declaration, together with the improvements thereon. Declarant desires to establish a general plan of development for the planned community to be known as High Meadow. Declarant also desires to provide a reasonable and flexible procedure to maintain certain development rights that are essential for the successful completion and marketing of the Property. Declarant further desires to provide for the preservation, administration, and maintenance of portions of High Meadow, and to protect the value, desirability, and attractiveness of High Meadow. As an integral part of the development plan, Declarant deems it advisable to create a property owners association to perform these functions and activities more fully described in this Declaration and the other Governing Documents described below. Declarant DECLARES that the property described in Appendix A, and any additional property made subject to this Declaration by recording one or more amendments of or supplements to this Declaration, will be owned, held, transferred, sold, conveyed, leased, occupied, used, insured, and encumbered subject to the terms, covenants, conditions, restrictions, and easements of this Declaration, including Declarant s rights and reservations in the attached Appendix C, which run with the real property and bind all parties having or acquiring any right, title, or interest in any part of the property, their heirs, successors, and assigns, and inure to the benefit of each owner of any part of the property. ARTICLE 1 DEFINITIONS The following words and phrases, whether or not capitalized, have specified meanings when used in the Governing Documents, unless a different meaning is apparent from the context in which the word or phrase is used. 1.1. Applicable Law means the statutes and public laws and ordinances in effect at the time a provision of the Governing Documents is applied, and pertaining to the subject matter of the Governing Document provision. Statutes and ordinances specifically referenced in the Governing Documents are Applicable Law on the date of the Governing Document, and are not intended to apply to the Project if they cease to be applicable by operation of law, or if they are replaced or superceded by one or more other statutes or ordinances. 1.2. Architectural Reviewer means the entity having jurisdiction over a particular application for architectural approval. The board-appointed Architectural Control Committee is the Architectural Reviewer. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 1

1.3. Area of Common Responsibility means portions of the individually owned house lots that are maintained by the Association as a common expense, as described in Section 13.3 below. The Area of Common Responsibility does not include the Common Areas. 1.4. Assessment means any charge levied against a lot or owner by the Association, pursuant to the Governing Documents or public law, including but not limited to Regular Assessments, Special Assessments, Individual Assessments, and Deficiency Assessments, as defined in Article 9 of this Declaration. 1.5. Association means the association of owners of all lots in the Property, and serving as the property owners association defined in Section 202.001(2) of the Code. The initial name of the Association is High Meadow Owners Association. 1.6. Board means the board of directors of the Association. 1.7. Builder is defined in Appendix C of this Declaration. 1.8. Code means the Texas Property Code, as amended. 1.9. Common Area means portions of real property and improvements thereon that are owned and/or maintained by the Association, as described in Article 5 below. Portions of the common area may be allocated to certain lots as limited common area. Common Area does not include the Area of Common Responsibility. 1.10. Declarant means MM High Road, LLC, a Texas limited liability company, which is developing the Property, or the successors and assigns of MM High Road, LLC, which are designated a Successor Declarant by MM High Road, LLC, or by any such successor and assign, in a recorded document, executed by both Declarant and Successor Declarant in the case of a voluntary assignment. 1.11. Declarant Control Period is defined in Appendix C of this Declaration. 1.12. Declaration means this document, as it may be amended from time to time. In the event this Declaration contains a provision which is contrary to a mandatory provision of the Code, the Code provision controls. 1.13. Development Period is defined in Appendix C of this Declaration. 1.14. Governing Documents means, singly or collectively as the case may be, this Declaration, the Plat, the bylaws, the Association s certificate of formation, and the rules of the Association, as any of these may be amended from time to time. An appendix, exhibit, schedule, or certification accompanying a Governing Document is a part of that Governing Document. All Governing Documents are to be recorded in every county in which all or a portion of the Property is located. The Governing Documents are Dedicatory Instruments as defined in Section 202 of the Code. 1.15. High Meadow means High Meadow, the planned community and Property which is the subject of this Declaration. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 2

1.16. Lot means a portion of the Property intended for independent ownership, on which there is or will be constructed a dwelling, as shown on the Plat. As a defined term, lot does not refer to common areas, even if platted and numbered as a lot. Where the context indicates or requires, lot includes all improvements thereon and any portion of a right-of-way that customarily is used exclusively by and in connection with the lot. 1.17. Member means a member of the Association, each member being an owner of a lot, unless the context indicates that member means a member of the board or a member of a committee of the Association. In the context of votes and decision-making, each lot has only one membership, although it may be shared by co-owners of a lot. 1.18. Owner means a holder of recorded fee simple title to a lot. Declarant is the initial owner of all lots. Contract sellers and mortgagees who acquire title to a lot through a deed in lieu of foreclosure or through judicial or nonjudicial foreclosure are owners. Persons or entities having ownership interests merely as security for the performance of an obligation are not owners. Every owner is a member of the Association. A reference in any Governing Document or applicable law to a percentage or share of owners or members means owners of at least that percentage or share of the lots, unless a different meaning is specified. For example, a majority of owners means owners of at least a majority of the lots. 1.19. Plat means all plats, singly and collectively, recorded in the Real Property Records of Denton County, Texas, and pertaining to High Meadow, according to the plat thereof recorded in the Real Property Records of Denton County, Texas, including all dedications, limitations, restrictions, easements, notes, and reservations shown on the plat, as it may be amended from time to time. 1.20. Property means all the land subject to this Declaration and all improvements, easements, rights, and appurtenances to the land. The name of the Property is High Meadow. The Property is located on land described in Appendix A to this Declaration, as it may be amended or supplemented from time to time, and includes every lot and any common area thereon. lot. 1.21. Resident means an occupant of a dwelling, regardless of whether the person owns the 1.22. Rules means rules and regulations of the Association adopted in accordance with the Governing Documents or applicable law. The initial Rules may be adopted by Declarant for the benefit of the Association. 1.23. Town means the Town of Flower Mound, Texas. ARTICLE 2 PROPERTY SUBJECT TO DOCUMENTS 2.1 PROPERTY. The real property described in Appendix A is held, transferred, sold, conveyed, leased, occupied, used, insured, and encumbered subject to the terms, covenants, conditions, restrictions, liens, and easements of this Declaration, including Declarant s rights and reservations in the attached Appendix C, which run with the Property and bind all parties having or acquiring any right, title, or interest in the Property, their heirs, successors, and assigns, and inure to the benefit of each owner of the Property. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 3

2.2 RESTRICTIONS, EASEMENTS & PLAT DEDICATIONS. In addition to the easements and restrictions contained in this Declaration, the Property is subject to all restrictions, easements, licenses, leases, and encumbrances of record, including any shown or referenced on the plat, each of which is incorporated herein by reference. Each owner, by accepting an interest in or title to a lot, whether or not it is so expressed in the instrument of conveyance, covenants and agrees to be bound by priorrecorded restrictions, easements, licenses, leases, and encumbrances, and further agrees to maintain any easement that crosses his lot and for which the Association does not have express responsibility. 2.3 ADDITIONAL PROPERTY. Additional real property may be annexed to the Property and subjected to the Declaration and the jurisdiction of the Association on approval of owners representing at least two-thirds of the lots in the Property, or, during the Development Period, by Declarant as permitted in Appendix C. Annexation of additional property is accomplished by recording a declaration of annexation, including an amendment of Appendix A, in the Real Property Records of Denton County, Texas. 2.4 CHANGE IN CIRCUMSTANCE. This Community discloses some characteristics of High Meadow that may change or that may cease to apply because of acts or decisions by authorities external to the Property. If the change of circumstance is of public record or is capable of independent verification by any interested person, the board of directors, without a vote of the owners, may issue a Notice of Change that references the provision of this Declaration that ceases to apply to High Meadow. The Notice, if any, shall be recorded in the Real Property Records of Denton County, Texas, and does not constitute an amendment of this Declaration. If such a Notice is issued, the Association will notify owners of its existence and will make it available to owners as an Association record. This provision may not be construed to give the board unilateral amendment powers, nor to prevent an amendment of this Declaration by a vote of the owners to achieve the same purpose. 2.5 CONNEMARA CONSERVANCY EASEMENTS AND LOT 10. Certain portions of the Property are subject to conservation easements. The first such easement is that certain Deed of Conservation Easement dated January, 2014, recorded January, 2014, as Document No., in the Real Property Records of Denton County, Texas ( Conservation Easement 1 ). Conservation Easement 1 addresses the responsibilities, construction, use and maintenance of approximately 12.28 acres of the Property as more specifically described in Conservation Easement 1. The second easement is that certain Deed of Conservation Easement dated January, 2014, recorded January, 2014, as Document No., in the Real Property Records of Denton County, Texas ( Conservation Easement 2 ). Conservation Easement 2 addresses the responsibilities, construction, use and maintenance of approximately 4,517 acres of the Property (also known as Lot 10) as more specifically described in Conservation Easement 2. Conservation Easement 1 & Conservation Easement 2 also contain requirements of the Association with regard to the respective property subject to such easements. UPON THE EXPIRATION OF THE DECLARANT CONTROL PERIOD, THE ASSOCIATION ASSUMES RESPONSIBILITY FOR AND THE DECLARANT IS RELEASED FROM ANY AND ALL RESPONSIBILITIES, LIABILITIES, CLAIMS OR DAMAGES RELATED TO THE PROPERTY SUBJECT TO CONSERVATION EASEMENT 1 & CONSERVATION EASEMENT 2, WHICH ARISE SUBSEQUENT TO THE EXPIRATION OF THE DECLARANT CONTROL PERIOD. ARTICLE 3 PROPERTY FEATURES 3.1 LAND USE. Although this Declaration contains a limited number of disclosures about the Property and its location on the date of this Declaration, neither Declarant nor the Association makes any representation that these are the only noteworthy features of the Property or its location. A DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 4

prospective owner or resident must make his own inspection of the Property and its location, and make inquiries of anything that concerns him. Except for the express disclosures stated in this Declaration, Declarant makes no representation of any kind as to current or future uses - actual or permitted - of any land that is adjacent to or near the Property, regardless of what the plat shows as potential uses of adjoining land. Declarant, Builders, and the Association cannot and do not guaranty scenic views, volumes of traffic on streets around and through the Property, availability of schools or shopping, or any other aspect of the Property that is affected by the uses or conditions of adjacent or nearby land, water, or air. 3.2 SUBJECT TO ALL OTHER DOCUMENTS. Each owner, by accepting an interest in or title to a lot, whether or not it is so expressed in the instrument of conveyance, covenants and agrees to be bound by all the Documents which are publicly recorded or which are made available to owners by the Association, expressly including this publicly recorded Declaration. 3.3 CHANGE OF CIRCUMSTANCE. This Declaration discloses some characteristics of the Property that may change or that may cease to apply because of acts or decisions by authorities external to the Property. If the change of circumstance is of public record or is capable of independent verification by any interested person, the board of directors, without a vote of the owners, may issue a Notice of Change that references the provision of this Declaration that ceases to apply to the Property. The Notice may be recorded in the Real Property Records of Denton County, Texas, and does not constitute an amendment of this Declaration. If such a Notice is issued, the Association will notify owners of its existence and will make it available to owners as a record of the Association. This provision may not be construed to give the board unilateral amendment powers, nor to prevent an amendment of this Declaration by a vote of the owners to achieve the same purpose. 3.4 STREETS WITHIN PROPERTY. Because streets within the Property may be capable of being converted from publicly dedicated to privately owned, and vice versa, this Section addresses both conditions. Private streets, if any, are part of the common area which is governed by the Association. Public streets are part of the common area only to the extent a governmental body, such as the Town or county, authorizes or delegates to the Association. 3.4.1. Public Streets. As to public streets, the Association, acting through the board, is specifically authorized (1) to accept from a governmental body any delegation of street-related duties, and (2) to act as attorney in fact for the owners in executing instruments required by public ordinance or public law to impose, modify, enforce, or remove restrictions or traffic devices (such as speed bumps) on public streets in the Property. 3.4.2. Private Streets. Only if and when the Property has private streets, the Association, acting through the board, is specifically authorized to adopt, amend, repeal, and enforce rules, regulations, and procedures for use of any private streets in the Property including but not limited to (1) designation of parking or no-parking areas, (2) limitations or prohibitions on curbside parking, (3) removal or prohibition of vehicles that violate applicable rules and regulations, (4) fines for violations of applicable rules and regulations, and (5) programs for controlling access through entrance gates, if any. ARTICLE 4 PROPERTY EASEMENTS AND RIGHTS DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 5

4.1 GENERAL. In addition to other easements and rights established by the Governing Documents or recorded in Denton County records, the Property is subject to the easements and rights contained in this Article. 4.2 EASEMENT FOR ENTRY. The Association is hereby granted a perpetual easement (the Screening Feature Easement ) over each lot that abuts or contains a portion of the Property s formal entrances or the Property s screening features, for the purposes stated in this Section, regardless of whether or how the plat shows the easement, entry features, or screening features. 4.2.1. Entrance Lots. On recording this Declaration, Declarant burdens the following lots on which the formal entrances are located, with the Screening Feature Easement: Lot, High Meadow Lot, High Meadow 4.2.2. Purpose of Easement. The purpose of the Screening Feature Easement is to provide for the existence, repair, improvement, and replacement of the Property s formal entrances and screening features, if any are created, to be maintained by the Association as a common area. In exercising this Screening Feature Easement, the Association may construct, maintain, improve, and replace improvements reasonably related to the screening or entrance of a residential subdivision, including: screening walls, fences and/or berms; planter beds, landscaping, and plant material; electrical and water meters and equipment, including light fixtures and sprinkler systems; and signage relating to the Property. 4.2.3. Rights Reserved. The owners of the lots burdened with the Screening Feature Easement will have the continual use and enjoyment of their lots for any purpose that does not interfere with and prevent the Association s use of the Screening Feature Easement. 4.2.4. Temporary Easement. In addition to the easement granted herein, the Association has the temporary right, from time to time, to use as much as the surface of a burdened lot as may be reasonably necessary for the Association to perform its contemplated work on the Screening Feature Easement. 4.2.5. Duration, Termination & Assignment of Easement. This easement is perpetual until it is abandoned by the Association, or becomes impossible to perform. The Association may assign this easement, or any portion thereof, to the Town if such entity agrees to accept the assignment. 4.3 OWNER S EASEMENT OF ENJOYMENT. Every owner is granted a right and easement of enjoyment over the common areas and to use of improvements therein, subject to other rights and easements contained in the Governing Documents. An owner who does not occupy a lot delegates this right of enjoyment to the residents of his lot. Notwithstanding the foregoing, if a portion of the common area, such as a recreational area, is designed for private use, the Association may temporarily reserve the use of such area for certain persons and purposes. 4.4 OWNER S INGRESS/EGRESS EASEMENT. Every owner is granted a perpetual easement over the Property s streets, as may be reasonably required, for vehicular ingress to and egress from his lot. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 6

4.5 OWNER S RIGHT TO BUILD. That a house lot remains vacant and unimproved for a period of years, even decades, does not diminish the right of the lot owner to construct improvements on the lot. Nor does a vacant lot enlarge the rights of owners of neighboring lots, who may have become so accustomed to the open space that they expect it to remain unimproved forever. 4.6 RIGHTS OF TOWN. The Town of Flower Mound, including its agents and employees, has the right of immediate access to the common areas at all times if necessary for the welfare or protection of the public, to enforce Town ordinances, or to improve the appearance of or to preserve public property, pubic easements, or public rights of way. If the Association fails to maintain the common areas to a standard acceptable to such governmental entity, such entity may give the Association a written demand for maintenance. 4.7 ASSOCIATION S ACCESS EASEMENT. Each owner, by accepting an interest in or title to a lot, whether or not it is so expressed in the instrument of conveyance, grants to the Association an easement of access and entry over, across, under, and through the Property, including without limitation all common areas and the owner s lot and all improvements thereon - including the house and yards - for the below-described purposes. 4.7.1. Purposes. Subject to the limitations stated below, the Association may exercise this easement of access and entry for the following express purposes: a. To inspect the property for compliance with maintenance and architectural standards. b. To perform maintenance that is permitted or required of the Association by the Governing Documents or by applicable law. c. To perform maintenance that is permitted or required of the owner by the Governing Documents or by applicable law, if the owner fails or refuses to perform such maintenance. d. To enforce architectural standards. e. To enforce use restrictions. f. The exercise of self-help remedies permitted by the Governing Documents or by applicable law. g. To enforce any other provision of the Governing Documents. h. To respond to emergencies. i. To grant easements to utility providers as may be necessary to install, maintain, and inspect utilities serving any portion of the Property. j. To perform any and all functions or duties of the Association as permitted or required by the Governing Documents or by applicable law. 4.7.2. No Trespass. In exercising this easement on an owner s lot, the Association is not liable to the owner for trespass. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 7

4.7.3. Limitations. If the exercise of this easement requires entry onto an owner s lot, including into an owner s fenced yard, the entry will be during reasonable hours and after notice to the owner. This Subsection does not apply to situations that - at time of entry - are deemed to be emergencies that may result in imminent damage to or loss of life or property. 4.8 UTILITY EASEMENT. The Association may grant permits, licenses, and easements over common areas for utilities, roads, and other purposes necessary for the proper operation of the Property. A company or entity, public or private, furnishing utility service to the Property, is granted an easement over the Property for ingress, egress, meter reading, installation, maintenance, repair, or replacement of utility lines and equipment, and to do anything else necessary to properly maintain and furnish utility service to the Property. Utilities may include, but are not limited to, water, sewer, trash removal, electricity, gas, telephone, master or cable television, and security. 4.9 SECURITY. The Association may, but is not obligated to, maintain or support certain activities within the Property designed, either directly or indirectly, to improve safety in or on the Property. Each owner and resident acknowledges and agrees, for himself and his guests, that Declarant, Builders, the Association, and their respective directors, officers, committees, agents, and employees are not providers, insurers, or guarantors of security within the Property. Each owner and resident acknowledges and accepts his sole responsibility to provide security for his own person and property, and assumes all risks for loss or damage to same. Each owner and resident further acknowledges that Declarant, Builders, the Association, and their respective directors, officers, committees, agents, and employees have made no representations or warranties, nor has the owner or resident relied on any representation or warranty, express or implied, including any warranty of merchantability or fitness for any particular purpose, relative to any fire, burglar, and/or intrusion systems recommended or installed, or any security measures undertaken within the Property. Each owner and resident acknowledges and agrees that Declarant, Builders, the Association, and their respective directors, officers, committees, agents, and employees may not be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. PLEASE CAREFULLY READ THE "SECURITY" SECTION 4.10 MINERAL INTERESTS. In the era in which this Declaration is written, there is renewed interest in oil and gas exploration. 4.10.1. Mineral Interests Reserved. On the date of this Declaration, it is expected that all mineral interests and water rights will have been reserved by a prior owner of the Property or conveyed pursuant to one or more deeds or other instruments recorded in the Real Property Records of Denton County, Texas, including but not limited to rights to all oil, gas, or other minerals and water lying on, in, or under the Property and surface rights of ingress and egress. Because the instruments conveying or reserving mineral interests and water rights were recorded prior to this Declaration, those interests in the Property are superior and are not affected by any provision to the contrary in this Declaration. By accepting title to or interest in a lot, every owner acknowledges the existence of the mineral and water rights and/or reservations referenced in this Section and the attendant rights in favor of the owner or owners of the mineral interests. 4.10.2. Mineral Reservation by Declarant. In the event (1) a mineral interest or water right for any part of the Property has not been reserved or conveyed prior to Declarant s DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 8

conveyance of the Property, or (2) a reservation or conveyance of mineral interests and water rights is determined to be invalid or to have terminated, Declarant hereby reserves for itself all right, title, and interest in and to the oil, gas, and other minerals and water in, on, and under and that may be produced from the Property, to have and to hold forever. 4.10.3. Association as Trustee. By accepting title to or interest in a lot, each owner acknowledges that any oil, gas, mineral, water, or other natural element in, on, under, or over any part of the Property that has not previously been reserved or conveyed is owned by the Association for the collective and undivided benefit of all owners of the Property. In support of that purpose, each owner - by accepting title to or interest in a lot - irrevocably appoints the Association, acting through the board, as his trustee to negotiate, receive, administer, and distribute the proceeds of any interest in oil, gas, mineral, water, or other natural element in, on, under, or over the owner s lot and that may be produced from the owner s lot for the collective and undivided benefit of all owners of the Property. ARTICLE 5 COMMON AREA 5.1 PRIVATE USE. Except for access easements created by Section 4.2 of this Declaration, the Property s common areas are intended for the exclusive use of the Property s owners and residents and their guests. Neither the Association nor Declarant intends for the common areas to be a public accommodation or a public facility. 5.2 OWNERSHIP. The designation of real property as a common area is determined by the plat and this Declaration, and not by the ownership of the property. This Declaration contemplates that the Association will eventually hold title to every common area capable of independent ownership by the Association. Declarant may install, construct, or authorize certain improvements on common areas in connection with the initial development of the Property, and the cost thereof is not a common expense of the Association. Thereafter, all costs attributable to common areas, including maintenance, property taxes, insurance, and enhancements, are automatically the responsibility of the Association, regardless of the nature of title to the common areas, unless this Declaration elsewhere provides for a different allocation for a specific common area. 5.3 ACCEPTANCE. By accepting an interest in or title to a lot, each owner is deemed (1) to accept the common area of the Property, and any improvement thereon, in its then-existing as is condition; (2) to acknowledge the authority of the Association, acting through its board of directors, for all decisions pertaining to the common area; (3) to acknowledge that transfer of a common area s title to the Association by or through the Declarant is a ministerial task that does not require acceptance by the Association; and (4) to acknowledge the continuity of maintenance of the common area, regardless of changes in the Association s board of directors or management. 5.4 CONVEYANCE. The Association, acting through its board of directors, may accept or convey real property interests from or to, as the case may be, a governmental entity or agency, if the conveyance is required by the governmental entity or agency, or if the board deems such a conveyance to be in the best collective interest of the Association. Property interest capable of conveyance include fee title to all or part of a common area, an easement across real property, and a lease or license of real property. 5.5 COMPONENTS. The common area of the Property consists of the following components on or adjacent to the Property, even if located on a lot or a public right-of-way: DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 9

a. All of the Property, save and except the house Lots. b. The land described in Appendix A as common area and all improvements thereon. c. Any area shown on the plat as common area or an area to be maintained by the Association. d. The formal entrances to the Property, including (if any) the signage, landscaping, electrical and water installations, planter boxes and fencing. e. Any modification, replacement, or addition to any of the above-described areas and improvements. f. Personal property owned by the Association, such as books and records, office equipment, and supplies. 5.6 LIMITED COMMON AREA. If it is in the best interest of the Association, a portion of the common area may be licensed, leased, or allocated to one or more lots for their sole and exclusive use, as a limited common area, whether or not the area is so designated on the plat. Inherent in the limiting of a common area, maintenance of the limited common area becomes the responsibility of the lot owner, rather than the Association. For example, a common area that is difficult to access and maintain except via the adjoining house lot might be a candidate for limited common area. ARTICLE 6 ARCHITECTURAL COVENANTS AND CONTROL 6.1 PURPOSE. Because the lots are part of a single, unified community, this Declaration creates rights to regulate the design, use, and appearance of the lots and common areas in order to preserve and enhance the Property s value and architectural harmony. One purpose of this Article is to promote and ensure the level of taste, design, quality, and harmony by which the Property is developed and maintained. Another purpose is to prevent improvements and modifications that may be widely considered to be radical, curious, odd, bizarre, or peculiar in comparison to then existing improvements. A third purpose is to regulate the appearance of every aspect of proposed or existing improvements on a lot, including but not limited to dwellings, fences, landscaping, yard art, sidewalks and driveways, and further including replacements or modifications of original construction or installation. 6.2 ARCHITECTURAL CONTROL - CONSTRUCTION OF NEW HOMES. The Architectural Reviewer will approve the construction of new homes on vacant lots. 6.2.1. Minimum Builder Qualifications. The Architectural Reviewer may determine the minimum qualifications of Builders who are eligible to construct homes and the other initial improvements on a lot in High Meadow. The Architectural Reviewer maintains the right to change the qualifications from time to time, and to disqualify a Builder who was previously approved. An example of suggested qualifications for a Builder are: a. Evidence of registration with the Texas Residential Construction Commission. b. Documentation of complaint record, and resolution status with the Texas Residential Construction. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 10

c. Documentation of complaint record, and resolution status with the local Better Business Bureau. d. Documentation of building at least 12 residential units within the last 5 year, with addresses, sales prices, time of closing, and identification of whether built speculatively or built-to-suit a particular purchaser. e. Names and addresses of the company s principals. f. List of entity, marketing, or alternative names used by Builder or Builder s entity during the last 5 years. g. At least 5 references with contact information. 6.2.2. Eligible Builders. Prior to purchasing a lot, a Builder should apply to the Architectural Reviewer for a determination of eligibility to construct improvements on the lot. Prior to hiring a Builder, an owner should apply to the Architectural Reviewer for a determination of the proposed Builder s eligibility to construct improvements on the owner s lot. The Architectural Reviewer has the right to limit the number of eligible home builders working in High Meadow at a given time. The Architectural Reviewer also has the right to disqualify a Builder who was previously approved. 6.2.3. Builder Obligations. The Architectural Reviewer has the right but not the duty (1) to reduce or waive the assessment obligation of a Builder, and (2) to exempt a Builder from any or all liabilities for transfer-related fees charged by the Association or its manager, provided the agreement is in writing. Absent such an exemption, any Builder who owns a lot is liable for all assessments and other fees charged by the Association in the same manner as any owner. 6.2.4. Builder Transfer Fees. The Architectural Reviewer has the right but not the duty to exempt a Builder from any or all liabilities for transfer-related fees charged by the Association or its manager, provided the agreement is in writing. 6.2.5. Approval of Builder Plans. If a Builder intends to construct a number of predesigned homes in the Property, the Builder may submit the set of house plans and elevations to the Architectural Reviewer for approval. Such plans may be submitted and approved prior to Builder s purchase of lots in the Property. House plans and elevations that are pre-approved for multiple use may be constructed by Builder without re-submitting plans on a lot by lot basis as the houses are constructed, unless the actual house plan or elevation deviates substantially from the pre-approved plan and elevation. Examples of substantial deviation include (1) reducing the size of the dwelling by more than 15 percent, (2) reducing the amount of masonry exterior material by more than 15 percent, (3) changing the style of the front elevation, such as from Mediterranean to Modern, and (4) replacing a garage with a porte cochere or carport. Each house shall conform to the finished floor elevation as specified on the lot grading plan for the subdivision, if any. 6.2.6. Individual Lot Application. Builder must apply to the Architectural Reviewer for approval of any substantial modifications or variations from or additions to the pre-approved plans for the Property, as well as the plot plan for each house. Builder may presume that its request has been approved by the Architectural Reviewer if Builder has not received the DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 11

Architectural Reviewer s written response - approving, denying, or requesting additional information - within 45 calendar days after delivering his complete application to the Architectural Reviewer. 6.2.7. Builder Signs. The Architectural Reviewer has (1) the right to permit Builders to place signs and promotional materials on the Property and (2) the right to exempt a Builder from the sign restriction in this Declaration. Any sign used by Builders in the Property may be approved in writing by the Architectural Reviewer prior to installation, and is subject to summary removal if not approved and if the Architectural Reviewer finds it objectionable. As used in this Section, sign includes, without limitation, lettering, images, symbols, pictures, shapes, lights, banners, and any other representation or medium that conveys a message. 6.3 ARCHITECTURAL CONTROL BY ASSOCIATION. The ACC will consist of at least 3 but not more than 5 persons appointed by the board, pursuant to the Bylaws. Members of the ACC serve at the pleasure of the board and may be removed and replaced at the board s discretion. At the board s option, the board may act as the ACC, in which case all references in the Governing Documents to the ACC are construed to mean the board. Members of the ACC need not be owners or residents, and may but need not include architects, engineers, and design professionals whose compensation, if any, may be established from time to time by the board. 6.4 LIMITS ON LIABILITY. The Architectural Reviewer has sole discretion with respect to taste, design, and all standards specified by this Article. The Architectural Reviewer and each of its members has no liability for decisions made in good faith by the Architectural Reviewer, and which are not arbitrary or capricious. The Architectural Reviewer is primarily interested in the aesthetic aspects of proposed improvements, and may not be deemed to be liable for any aspect of the engineering or construction of the improvements, such as (1) errors in or omissions from the plans and specifications submitted to the Architectural Reviewer, (2) supervising construction for the owner s compliance with approved plans and specifications, (3) soil testing or the engineering of foundations and structural elements, or (4) the compliance of the owner s plans and specifications with governmental codes and ordinances, state and federal laws. 6.5 PROHIBITION OF CONSTRUCTION, ALTERATION & IMPROVEMENT. Without the Architectural Reviewer s prior written approval, a person may not construct a dwelling or make an addition, alteration, improvement, installation, modification, redecoration, or reconstruction of or to the Property, if it will be visible from a street, another lot, or the common area. The Architectural Reviewer has the right but not the duty to evaluate every aspect of construction, landscaping, and property use that may adversely affect the general value or appearance of the Property. BEFORE MAKING AN IMPROVEMENT OR ALTERATION TO THE STRUCTURE OR EXTERIOR APPEARANCE OF A LOT OR HOME, A BUILDER OR OWNER MUST APPLY FOR AND RECEIVE WRITTEN 6.6 ARCHITECTURAL APPROVAL. To request architectural approval, an owner must make written application to the Architectural Reviewer and submit 2 identical sets of plans and specifications showing the nature, kind, shape, color, size, materials, and locations of the work to be performed. In support of the application, the owner may but is not required to submit letters of support or non-opposition from owners of lots that may be affected by the proposed change. The application must clearly identify any requirement of this Declaration for which a variance is sought. The Architectural DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 12

Reviewer will return one set of plans and specifications to the applicant marked with the Architectural Reviewer s response, such as Approved, Denied, or More Information Required. The Architectural Reviewer will retain the other set of plans and specifications, together with the application, for the Architectural Reviewer s files. Verbal approval by an Architectural Reviewer, an Association director or officer, a member of the ACC, or the Association s manager does not constitute architectural approval by the appropriate Architectural Reviewer, which must be in writing. 6.6.1. Deemed Approval. Under the following limited conditions, the applicant may presume that his request has been approved by the Architectural Reviewer: a. If the applicant or a person affiliated with the applicant has not received the Architectural Reviewer s written response - approving, denying, or requesting additional information - within 60 days after delivering his complete application to the Architectural Reviewer. b. If the proposed improvement or modification strictly conforms to requirements and construction specifications contained in this Declaration and in any design guidelines for the Property in effect at the time of application. If those conditions are satisfied, the owner may then proceed with the improvement, provided he adheres to the plans and specifications which accompanied his application, and provided he initiates and completes the improvement in a timely manner. In exercising deemed approval, the burden is on the owner to document the Architectural Reviewer s actual receipt of the owner s complete application. Under no circumstance may approval of the Architectural Reviewer be deemed, implied, or presumed for an improvement or modification that would require a variance from the requirements and construction specifications contained in this Declaration and in any design guidelines for the Property in effect at the time of application. 6.6.2. No Approval Required. No approval is required to repaint exteriors in accordance with the color scheme approved by the Architectural Reviewer, or to rebuild a dwelling in accordance with originally approved plans and specifications. Nor is approval required for an owner to remodel or repaint the interior of a dwelling. 6.6.3. Building Permit. If the application is for work that requires a building permit from a governmental body, the Architectural Reviewer s approval is conditioned on the issuance of the appropriate permit. The Architectural Reviewer s approval of plans and specifications does not mean that they comply with the requirements of the governmental body. Alternatively, governmental approval does not ensure Architectural Reviewer approval. 6.6.4. Neighbor Input. The Architectural Reviewer may solicit comments on the application, including from owners or residents of lots that may be affected by the proposed change, or from which the proposed change may be visible. Whether to solicit comments, from whom to solicit comments, and whether to make the comments available to the applicant is solely at the discretion of the Architectural Reviewer. The Architectural Reviewer is not required to respond to the commenters in ruling on the application. 6.6.5. Declarant Approved. Notwithstanding anything to the contrary in this Declaration, any improvement to the Property made or approved by Declarant during the Development Period is deemed to have been approved by the Architectural Reviewer. If the DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 13

improvement is of a nature that would require a variance by the Architectural Reviewer, such variance is deemed to have been granted. 6.7. ARCHITECTURAL GUIDELINES. Declarant during the Development Period, and the Association thereafter, may publish architectural restrictions, guidelines, and standards, which may be revised from time to time to reflect changes in technology, style, and taste. ARTICLE 7 CONSTRUCTION AND USE RESTRICTIONS 7.1 VARIANCE. The use of the Property is subject to the restrictions contained in this Article, and subject to rules adopted pursuant to this Article. The board or the Architectural Reviewer, as the case may be, may grant a variance or waiver of a restriction or rule on a case-by-case basis when unique circumstances dictate, and may limit or condition its grant. To be effective, a variance must be in writing. The grant of a variance does not effect a waiver or estoppel of the Association s right to deny a variance in other circumstances. Approval of a variance or waiver may not be deemed, implied, or presumed under any circumstance. 7.2 CONSTRUCTION RESTRICTIONS. Without the Architectural Reviewer s prior written approval for a variance, improvements constructed on every lot must have the characteristics described in Appendix B, which may be treated as the minimum requirements for improving and using a lot. The Architectural Reviewer and the board may promulgate additional rules and restrictions, as well as interpretations, additions, and specifications of the restrictions contained in this Article. An owner should review the Association s architectural restrictions, if any, before planning improvements, repairs, or replacements to his lot and dwelling. 7.3 LIMITS TO RIGHTS. No right granted to an owner by this Article or by any provision of the Governing Documents is absolute. The Governing Documents grant rights with the expectation that the rights will be exercised in ways, places, and times that are customary for the neighborhood. This Article and the Governing Documents as a whole do not try to anticipate and address every creative interpretation of the restrictions. For example, an owner s right to have a sign advertising the home for sale is not the right to mount the sign on the chimney and illuminate it with pulsating neon lights. The right of access to a home is not the right to land helicopters on the lot. The rights granted by this Article and the Governing Documents are at all times subject to the board s determination that a particular interpretation and exercise of a right is significantly inappropriate, unattractive, or otherwise unsuitable for the neighborhood, and thus constitutes a violation of the Governing Documents. In other words, the exercise of a right or restriction must comply with the spirit of the restriction as well as with the letter of the restriction. 7.4 SUBJECTIVE STANDARDS. Standards for some rules and restrictions are inherently subjective, such as what is unattractive or offensive. The Association is not required to honor every resident s individual tolerances. On lifestyle-related rules, the Association may refrain from acting on a perceived violation unless the board determines the violation to be significant or a community-wide problem. The Association may not be compelled by one resident to enforce rules and restrictions against another resident. Residents are expected to deal directly and peaceably with each other about their differences. DON'T PUSH THE ENVELOPE, PLEASE. DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS Page 14