Meadow Creek Ranch

BY-LAWS
OF
MEADOW CREEK RANCH HOME-OWNERS' ASSOCIATION


Article One

NAME AND LOCATION

The name of the Association is Meadow Creek Ranch Home-Owners' Association, hereinafter referred to as the "Association".

The principal office of the Association shall be determined from time to time by the Board of Directors of the Association (the "Board"), but meeting of members and directors may be held at such places within the State of Texas, County of Hays, as may be designated by the Board.


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Article Two

DEFINITIONS

Section 1.  "Association" shall mean and refer to Meadow Creek Ranch Home-Owners' Association, it's successors and assigns.

Section 2.  "Properties" shall mean and refer to that certain real property described in the Declaration of Covenants, Conditions and Restrictions, and such additions thereto as may hereafter be brought within the jurisdiction of the Association.

Section 3.  "Common Area" shall mean and refer to any plot of land shown upon any recorded subdivision map of the Properties with the exception of the Common Area.

Section 4.  "Lot" shall mean and refer to any plot of land shown upon any recorded subdivision map of the Properties with the exception of the Common Area.

Section 5.  "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of the fee simple title to any Lot which is a part of the Properties, including Contract sellers, but excluding those having such interest merely as security for the performance of an obligation.

Section 6.  "Declarant" shall mean and refer to Brady Lowe, its successors and assigns if such successors or assigns should acquire more than one undeveloped Lot from the Declarant for the purpose of development.

Section 7.  "Declaration" shall mean and refer to the Declaration of Covenants, Conditions and Restrictions applicable to the Properties recorded in the Office of Hays County Clerk, Hays County, Texas.

Section 8.  "Member" shall mean and refer to those persons entitled to membership as provided in the Declaration.


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Article Three

MEETING OF MEMBERS

Section 1.  Annual Meetings.  The first annual meeting of the members shall be held within one year from the date of the Association, and each subsequent regular annual meeting of the members shall be held on the same day of the same month of each year thereafter, at the hour of 6:00 p.m.  If the day for the annual meeting of the members is a legal holiday, the meeting will be held at the same hour on the first day following which is not a legal holiday.

Section 2.  Special Meetings.  Special meetings of the members may be called at any time by the officers or upon written request of the members who are entitled to vote fifty-one percent (51%) of all of the votes of the membership.

Section 3.  Notice of Meetings.  Written notice of each meeting of the members shall be given by, or at the direction of, the secretary or person authorized to call the meeting, by mailing a copy of such notice, postage prepaid, at least 15 days before such meeting to each member entitled to vote thereat, addressed to the member's address last appearing on the books of the Association, or supplied by such member to the Association for the purpose of notice.  Such notice shall specify the place, day and hour of the meeting, and, in the case of a special meeting, the purpose of the meeting.

Section 4.  Quorum.  The presence at the meeting of members entitled to cast, or of proxies entitled to cast, fifty one percent (51%) of the votes of membership shall constitute a quorum for any action except as otherwise provided in these By-Laws.  If, however, such quorum shall not be present or represented at any meeting, the members entitled to vote thereat shall have power to adjourn the meeting from time to time, without notice other an announcement at the meeting, until a quorum as aforesaid shall be present or be represented.

Section 5.  Proxies.  At all meetings of members, each member may vote in person or by proxy.  All proxies shall be in writing and filed with the secretary.  Every proxy shall be revocable and shall automatically cease upon conveyance by the member of this Lot.


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Article Four

DIRECTORS, SELECTION, TERM OF OFFICE

Section 1.  Number.  The direction and management of the affairs of the Association shall be vested in a Board of Directors (the "Board") which shall consist of three persons, who need not be members of the Association.

Section 2.  Term of Office.  At the first annual meeting the members shall elect one director for a term of one year, one director for a term of two years and one director for a term of three years; and at each annual meeting thereafter, the members shall elect one director for a term of three years.

Section 3.  Removal.  Any director may be removed from the Board, with or without cause, by a majority vote of the members of the Association.  In the event of death, resignation or removal of a director, his successor shall be selected by the remaining directors and shall serve for the unexpired term of his predecessor.

Section 4.  Compensation.  No director shall receive compensation for any service he may render to the Association.  However, any director may be reimbursed for actual expenses incurred in the performance of his duties.

Section 5.  Action Taken without a Meeting.  The directors shall have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of all of the directors.  Any action so approved shall have the same effect as though taken at a meeting of the directors.

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Article Five

NOMINATION AND ELECTION OF DIRECTORS

Section 1.  Nomination.  Nomination for election of the Directors shall be made by a Nominating Committee.  Nominations may also be made from the floor at the annual meeting.  The Nominating Committee shall consist of a Chairman, who shall be a Director of the Association, and two or more members of the Association.  The Nominating Committee shall be appointed by the Directors prior to each annual meeting of the members, to serve from the close of such annual meeting until the close of the nest annual meeting and such appointment shall be announced at each annual meeting.  The Nominating Committee shall make as many nominations for election to the Directors as it shall in its discretion determine, but not less than the number of vacancies that are to be filled.  Such nomination may be made from among members or non-members.

Section 2.  Election.  Election of the Directors shall be by secret written ballot.  At such election the members or their proxies may cast, in respect to each vacancy, as many votes as they are entitled to exercise under the provisions of the Declaration.  The persons receiving the largest number of votes shall be elected.  Cumulative voting is not permitted.


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Article Six

MEETING OF THE DIRECTORS

Section 1.  Regular Meetings.  Regular meetings of the Directors shall be held monthly without notice, at such place and hour as may be fixed from time to time by resolution of the Directors.  Should said meeting fall upon a legal holiday, then that meeting shall be held at the same time on the next day which is not a legal holiday.

Section 2.  Special Meetings.  Special meetings of the Directors shall be held when called by the president of the Association, or by any two directors, after not less than three (3) days notice to each director.

Section 3.  Quorum.  A majority of the number of directors shall constitute a quorum for the transaction of business.  Every act or decision done or made by a majority of the directors present at a duly held meeting at which a quorum is present shall be regarded as the act of the Board.

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Article Seven

POWERS AND DUTIES OF THE DIRECTORS

Section 1.  Powers.  The Board shall have the power to:

(a) adopt and publish rules and regulation governing the use of the Common Area and facilities, and the personal conduct of the members and their guests thereon, and to establish penalties for the infraction thereof;

(b) Suspend the voting rights and right to use of the recreational facilities of a member during any period in which such member shall be in default in the payment of any assessment levied by the Association.  Such rights may also be suspended after notice and hearing, for a period not to exceed 10 days for infraction of published rules and regulations;

(c) Exercise for the Association all powers, duties and authority vested in or delegated to this Association and not reserved to the membership by other provisions of these By-laws, or the Declaration;

(d) Declare the office of a member of the Board to be vacant in the event such persons shall be absent from three (3) consecutive regular meetings of the Board; and

(e) Employ a manager, an independent contractor, or such other employees as they deem necessary, and to prescribe their duties.

Section 2.  Duties.  It shall be the duty of the Board to:

(a) Cause to be kept a complete record of all its acts and affairs and to present a statement thereof to the members at the annual meeting of the members, or at any special meeting which such statement is requested in writing by fifty-one percent (51%) of the members who are entitled to vote;

(b) supervise all directors, agents and employees of this Association, and to see that their duties are properly performed.

(c) As more fully provided in the Declaration, to:

1. fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period;

2. Send written notices of each assessment to every owner subject thereto at least thirty (30) days in advance of each annual assessment period;

(d) Issue, or to cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not any assessment has been paid.  A reasonably charge may be made by the Board for the issuance of these certificates.  If a certificate states an assessment has been paid, such certificate shall be conclusive evidence of such payment.

(e) Procure and maintain adequate liability and hazard insurance on property owned by the Association;

(f) Cause all directors or employees having fiscal responsibilities to be bonded, as it may deem appropriate; and

(g) Cause the common area to be maintained;

(h) Cause the exterior of the dwellings to be maintained.

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Article Eight

DIRECTORS AND THEIR DUTIES

Section 1.  Enumeration of Officers.  The officers of this Association shall be a president and vice-president, who shall at all times be members, a secretary, and a treasurer, and such other officers as the Board may from time to time by resolution create.

Section 2.  Election of Directors.  The election of Directors shall take place at the first meeting of the Board following each annual meeting of the members.

Section 3.  Term.  The directors of this Association shall be elected annually by the Board and each shall be elected annually by the Board and each shall hold office for one (1) year unless he shall sooner resign, or shall be removed, or otherwise disqualified to serve.

Section 4.  Special Appointments.  The Board may elect such other directors as the affairs of the Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Board may, from time to time, determine.

Section 5.  Resignation and Removal.  Any director may be removed from office with or without cause by the Board.  Any director may resign at any time giving written notice to the Board, the President or the Secretary.  Such resignation shall take effect on the date of receipt of such notice or any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 6.  Vacancies.  A vacancy in any office may be filled by appointment by the Board.  The director appointed to such vacancy shall serve for the remainder of the term of the director he replaces.

Section 7.  Multiple Offices.  The offices of secretary and treasurer may be held by the same person.  No person shall simultaneously hold more than one of any of the other offices except in the case of special offices created pursuant to Section 4 of this article.

Section 8.  Duties.  The duties of the officers are as follows:

President

(a) The President shall preside at all meetings of the Board; shall see that orders and resolution of the Board are carried out, shall sign all leases, mortgage, deeds and other written instruments and shall co-sign all checks and promissory notes.

Vice President

(b) The Vice-President shall act in the place and stead of the President in the event of his absence, inability or refusal to act, and shall exercise and discharge such other duties as may be required of him by the Board.

Secretary

(c)   The Secretary shall record the votes and keep the minutes of all meetings and proceedings of the Board and of the members; serve notice of meetings of the Board and of the members; keep appropriate current records showing the members of the Association together with their addresses, and shall perform such other duties as required by the Board.

Treasurer

(d) The Treasurer shall receive and deposit in appropriate bank accounts all monies of the Association and shall disburse such funds as directed by resolution of the Board; shall sign all checks and promissory notes of the Association; keep proper books of accounts; cause an annual audit of the Association books to be made by a Public Accountant at the completion of each fiscal year; and shall prepare an annual budget and a statement of income and expenditures to be represented to the membership at this regular annual meeting, and deliver a copy of each to the members.


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Article Nine

COMMITTEES

The Association shall appoint an Architectural Control Committee, as provided in the Declaration, and a Nominating Committee, as provided in the Declaration, and a Nominating Committee, as provided in these By-laws.  In addition, the Board shall appoint other committees as deemed appropriate in carrying our its purpose.


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Article Ten

BOOKS AND RECORDS


The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any member.  The Declaration and the By-laws of the Association shall be available for inspection by any member at the principal office of the Association, where copies may be purchased a reasonable cost.


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Article Eleven

ASSESSMENTS

As more fully provided in the Declaration, each member is obligated to pay to the Association annual and special assessments which are secured by a continuing lien upon the property against which the assessment is made.  Any assessments which are not paid when due shall be delinquent.  If the assessment is not paid within thirty (30) days after the due date, the assessment shall bear interest from the date of delinquency at the rate of 12% per annum, and the Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien against the property, and the interest, costs, and reasonable attorney's fees of any such action shall be added to the amount of such assessment.  No Owner may waive or otherwise escape liability for the assessments provided for herein by nonuse of the Common Area or abandonment of his Lot.


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Article Twelve

AMENDMENTS

Section 1.  These By-laws may be amended, at a regular or special meeting of the members, by a vote of a majority of a quorum of members present in person or by proxy.

Section 2.  In the case of any conflict between the Association and these By-laws, the By-laws shall control; and in the case of any conflict between the Declaration and these By-laws, the Declaration shall control.


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Article Thirteen

MISCELLANEOUS

The fiscal year of the association shall begin on the first day of January and end on the 31st day of December of every year, except that the first fiscal year shall begin on the date of filing with the County.

In witness whereof, we, being all of the officers of the MEADOW CREEK RANCH HOME-OWNERS' ASSOCIATION, have hereunto set our hands this 2nd day of March, 1994.

Kyle Harper        Kyle Harper, President
Steve Foster      Steve Foster, Vice-President
Jim Glenn          Jim Glenn, Secretary-Treasurer


CERTIFICATION

I, the undersigned, do hereby certify:

That I am the duly elected and acting secretary of the MEADOW CREEK RANCH HOME-OWNERS' ASSOCIATION, and

LAND DEVELOPMENT

That the foregoing By-laws constitute the original By-laws of said Association, as duly adopted at the meeting of the Officers thereof, held on the 2nd day of March, 1994.

In witness whereof, I have hereunto subscribe my name and affixed the seal of said Association this 2nd day of March, 1994.


                                                                            Jim Glenn, Secretary

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Deeds and Restrictions


THE STATE OF TEXAS DECLARATION OF EASEMENTS, COVENANTS
AND RESTRICTION FOR MEADOW CREEK RANCH,
COUNTY OF HAYS PHASE I


KNOW ALL MEN BY THESE PRESENTS:

THAT, WHEREAS, BRADY M. LOWE, Owner of MEADOW CREEK RANCH, hereinafter call "Declarant", is the owner of all of that certain real property located in Hays County, Texas, described as follows:

NOW, THEREFORE, it is hereby declared that all of the property described above shall be HELD, SOLD and CONVEYED subject to the purpose of protecting the value and desirability of and which shall run with, the real property, and any portion thereof, and shall be binding on all parties having any rights, title or interest in or to the above described property or any part thereof, and their heirs, successors, and assigns, and which covenants and restrictions shall inure to the benefit of each owner thereof.  The real property described hereinabove shall hereinafter be referred to and known as "MEADOW CREEK RANCH", which shall hereafter be subject to the following:
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Land Use


1. All lots in MEADOW CREEK RANCH are restricted to use for residential purposes only.  No signs shall be placed on any part of these residential lots indicating a commercial or non-residential use thereof.

2.  No animals or fowl shall be permitted other than those types of animals or fowl normally found on rural property which are raised for personal family use and/or pleasure on a strictly non-commercial basis.  Permitted types of animals shall include horses, chickens, and household pets.  No swine shall be permitted, nor shall any cattle feeding, fowl feeding or other feeding or commercial operations, expressly including commercial kennels are not permitted, except animals for 4-H and FFA purposes.  If any member of any owner's family is under the age of nineteen (19) and is a bonafide member of any 4-H Club or Future Farmers of America Club, then one animal per each member (but not in excess of three) shall be permitted for the purpose of raising such animal for competition or as part of club project, provided, however, that (1) such animals hall be kept in a sightly pen or other enclosure, (2) the lot shall be kept clean and in a sanitary and odorless condition, and (3) the animal shall be removed from the lot upon completion of the competition or club project.  Chickens (no guinea fowl or pea fowl) shall be permitted provided their number is limited to three (3) per acre.  Shelter for these animals shall be located in the rear one0third (1/3) of the property, not visible from the road, a minimum of fifty feet (50') from the side property line, and neatly maintained.  A maximum of two (2) dogs per lot shall be permitted.  Exotic Game shall be allowed upon the property, with the exception of those that would affect the health, safety, and/or welfare of any of the landowners within the subdivision.  Any and all animals, including household pets, require appropriate fencing to confine them to their lot.  No animal shall be permitted until this appropriate fencing is completed.

3.  No junk or junk yards of any kind or character shall be permitted, no shall accumulation of scrap, used materials, inoperative automobiles, or machinery, or other unsightly storage of personal property be permitted.

4. No portion of the property shall be used in a manner that adversely affects adjoining property owners or creates an annoyance or nuisance to other property owners.  This shall include noise pollution shall as barking dogs, loud music, or any animal or fowl that causes a nuisance.

5. No hunting with firearms shall be permitted on any lot.  Bowhunting shall be allowed on lots of at least 10 acres.  No discharging of any firearms or fireworks shall be permitted on any lot.

6. No residence shall be erected on any part of said property or building site having less than 1700 square feet of floor space livable area in main building with one-half (1/2) thereof of masonry construction, with exception of log homes which will not require one-half (1/2) masonry construction.

7. All buildings erected on the premises shall be of new construction and materials.  No buildings or portion of buildings of old material may be moved into said subdivision.

8. It is the intent of the undersigned that all dwellings and other structures have a neat an attractive appearance.  No metal walls or walls of temporary sheeting will be allowed.  The entire exterior walls of all dwelling unites or other buildings hereafter constructed must be completed within one year after the commencement of work thereon or the placing of materials therefor on said property, whichever occurs the earliest, and in connection therewith it is understood, that the use of the word "completed", it is also meant the finishing of all such exterior walls.

9. No more than one residence shall be erected per each tow and one-half (2.5) acres.

10. No outside toilets, privies or cesspools will be permitted, and no installation of any type of sewage disposal device shall be allowed which would result in raw or untreated or unsanitary sewage being carried into any water body; all septic tanks must conform to the regulations of the State and County concerning septic systems.  Inspection and certification by each of the foregoing named regulatory governmental entities shall be required only if any individual regulatory body requires separate inspection and certification; otherwise, a certification made by an appropriate regulatory body which is accepted by another regulatory body for compliance purposes hereunder.

11.  No tents, campers or trailers shall be used on any of the property for residential purposes, on a temporary or permanent basis.  No pre-manufactured, modular, trailer or any other structure not built on the site shall be permitted.

12.  All tracts shall be kept in a clean and orderly condition at all times, and all trash, garbage and other waste shall be kept in sanitary containers.  Waste placed by the roadway for pickup shall be in disposable containers.

13. No structures used for storage purposes shall be erected or placed upon any parcel which will be visible from any roadway, unless placed within the most rear one-third (1/3) of the parcel, that being such portion farthest away from any roadway.  All such structures shall be neatly maintained.

14. No re-subdivision of any tract of less than two and one-half (2.5) acres shall be permitted except that this restriction shall not apply to any tract acquired by the Veterans Land Board of the State of Texas.

15. The owners of any and all tracts abutting or fronting the outboundary of the MEADOW CREEK RANCH shall maintain the existing outboundary fence.  Any opening for ingress and egress through the outboundary fence shall be provided at expense of owner with a gate or cattleguard or combination of the two, unless owner elects to fence his entire tract with a fence sufficient to turn cattle.  Any owner of any tract of land who elects not to have livestock graze upon his property will need to fence off his property.  After 75% of the Property is sold and the Home Owners Association is formed, Owners/Declarants may elect to remove livestock from the Property.  Cattle Lease shall run with the land for a term of five (5) years from recording of these restrictions.


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EASEMENTS

Easement for installation and maintenance of utilities and drainage facilities are located in the 60 ft. right of way shown on the plat of the subdivision and a 10 ft. easement along the front and rear property lines of each tract, and a 10 ft. easement along all side property lines of each tract.  Within these easements, no structure, platting or other material shall be placed or permitted to remain which may change the direction of flow or surface water drainage in the easements.  Within such easements the right of use, ingress and egress shall be had at all times for the installation, construction, operation, maintenance, repair, replacement, relocation or removal of any utility and drainage facility, together with the right to remove any obstructions or improvements that may be placed within any such easement which may interfere with the use of such easement for the purposes herein set forth.  The easement area of each tract and all improvements in it shall be maintained continuously by the owner of the tract, except for those improvement for which a public authority or utility company is responsible.  A utility easement may be used for any and all utilities, water, sewage, disposal, telephone, gas and/or electricity unless expressly limited to a specific use on the recorded plat of the subdivision of stated in the conveyance out of Owner.


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LANDOWNERS' AGREEMENT


At such time as seventy five percent (75%) of the residential lots have been sold and conveyed by Declarant, a Property Owners Association shall be created to be made up of the owners of the property within the MEADOW CREEK RANCH (the Subdivision).  A governing board of at least three (3) officers shall be elected by owners within the subdivision.  Election of officers shall be made annually.  The initial Association shall require the approval of a majority of the votes of property owners.  Amendment of the by-laws shall require a three-fourths (3/4) vote of the property owners.

The Property Owners' Association shall have authority to serve as the Architectural Control Committee, as hereafter established, at such time as all of the property within the subdivision has been sold by Declarant.

In order to provide for the installation, operation, repair, and maintenance of any common area within the subdivision (hereinafter referred to as "common area"), Declarant, for the benefit of itself and each successor owner of a tract within the subdivision, hereby binds Declarant and Declarant's successors and assigns as follows:

At any time and from time to time as any of the common areas in the subdivision are not being maintained by Hays County, a city, or other type of taxing authority within which the subdivision is located, Declarant may convey such common areas to a nonprofit corporation, or other organization, formed by Declarant for the purpose of owning, maintaining, operating and repairing the common areas (the "association") which shall have such supervisory authority to provide for the property maintenance, repairs and operation of the common areas as may be appropriate to the subdivision.  The association shall not be liable to any owner of any interest in such subdivision for any damage, claim or expense, for the manner in which said common areas are operated, maintained and repaired, or for failure to operate, maintain or repair such common areas.

Every owner of a tract within the subdivision shall be a member of the Association and such membership shall be appurtenant to and may not be separated from, ownership of a tract.  The Association initially shall have two classes of voting members as follows:

Class A members shall be all Lot owners with the exception of Declarant, and shall be entitled to one vote for each tract owned regardless of acreage.  An acre shall be considered as "owned" when legal, record title thereto has been transferred from Declarant to a third party.  When more than one person owns or holds an interest in a particular tract, all such persons shall be members and the vote for such tract shall be exercised as they may determine among themselves; provided, however, in no event shall more than one vote be cast with respect to any tract owned by Class A members.

Class B members shall be Declarant, who shall be entitled to exercise four votes for each tract owned by Declarant.  The Class B membership shall cease and automatically be converted to Class A membership when the total votes outstanding in the Class A membership equals or exceeds the total votes outstanding in the Class B membership.

Additional property and common areas may be annexed to or associated with the subdivision at any time with the consent of two-thirds of all members of the Association.

In order to provide a fund for the proper maintenance of such common areas (hereinafter called "Maintenance Fund") including, but not limited to payment of taxes and maintenance of common areas, there is hereby imposed upon each tract in the subdivision an annual maintenance charge which initially shall not exceed ten dollars ($10.00) per acre contained within the exterior boundaries of such tract; provided, however, such maximum per acre charges shall be adjusted on an annual basis commencing with calendar year 1990 for changes in the Consumer Price Index as follows: For calendar year 1990 and each subsequent calendar year the maximum charge of ten dollars ($10.00)  per acre by the ratio of the Consumer Price Index for December, 1989 (basis 1967 = 100.0).  The Consumer Price Index currently is published by the United States Department of Labor, Bureau of Labor Statistics.  If such index ceases to be published, it shall be replaced by a substantially equivalent index selected by the association based upon the projected cost of operating, maintaining and repairing the common areas.  Once assessed by the association such maintenance charge shall be payable at such intervals as selected from time to time by the Association by each owner of a tract in the subdivision.  Any delinquent maintenance charge shall accrue interest at any annual rate determined from time to time by the Association (which shall not exceed the maximum lawful annual interest rate) from the date of delinquency until paid.  The maintenance charge hereby imposed shall not apply to Declarant, or to any tract to which Declarant owns both the record and beneficial title.

Neither Declarant nor the Association shall be liable or responsible to any party for failure or inability to collect the maintenance charge or any part thereof from any part.

The Association may use the Maintenance Fund or any part thereof, for developing, improving, operating and maintaining any and all of the common areas which the owners and/or occupants of tracts may be privileged or shall have the right to use, regardless of who may own such common areas and regardless of their location.  It is agreed and understood that the judgement of the Association, as custodian and administrator of said Maintenance Fund, when used in good faith in the expenditure of said funds, or any part thereof, shall be binding, final and conclusive upon all parties in interest.

The payment of the maintenance charge hereby imposed shall be secured by an express lien in favor of the Association, as custodian and administrator of the Maintenance Fund, which lien is placed and imposed upon each tract in the subdivision subject to such charge.  There is hereby granted unto the Association an express lien against each tract of the subdivision to secure all obligations of the owner or owners of said tract imposed upon such owner or tract, under the provisions hereof. Such lien may be foreclosed in the same manner as a deed of trust lien (V.T.C.A. Property Code 51.002) or a vendor's lien, without prejudice, however, to any other rights, powers or causes of action which the holder of said lien may have against any party who is then or who has theretofore been the owner of the property affected thereby.

Said liens and all other provisions of this agreement shall be secondary and subordinate, however, to any liens, deeds of trust and encumbrances whatsoever given to secure all or any portion of the purchase price of any tract or any part thereof, or given to any party, agency, or department of the State of Texas, bank, savings and loan association, insurance company, trust company, fraternal benefit organization, or corporation with banking or related powers, lawfully lending money for the purposes of making repairs in any tract, or acquiring  any promissory note or other evidence of indebtedness previously made for any such purpose.  If any such lender or party acquiring such indebtedness should be in doubt as to the purpose for which such loan was made, or indebtedness incurred, or as to whether the lien herein granted any such mortgage or indebtedness, such lender or party acquiring such indebtedness may rely conclusively upon the written statement of the Association, with respect thereto.  The association may release or subordinate said lien and any other provision of this agreement, in whole or in part, for any reason whatsoever, without affecting said lien insofar as it applies to any other tract or tracts within the subdivision.

Notwithstanding anything contained herein to the contrary, if record title to any tract is acquired by the Veterans Land Board of the State of Texas (the "VLB") then so long as record title to such tract is held by the VLB, such tract shall not be subject to or encumbered with a lien to secure payment of the maintenance charge; however, payment of the maintenance charge shall remain the personal obligation of the party purchasing such tract from the VLB and upon the conveyance of record title out of the VLB such tract again shall be subject to the lien herein created to secure payment of the annual maintenance charge.

In addition to the "common areas" the Association may own and/or operate any utility service (including by way of example but not limitation, water, gas, sewage, and electricity) which is available for use by any tract within the subdivision, and it shall not be necessary for any such utility service to be limited only to the subdivision and may serve other property located without the subdivision.  If the Association should become the owner and/or operator of any such utility service, then the Association may create and collect such installation fees, tap fees, service fees and similar fees from each user thereof in such amounts and at such times as deemed necessary or desirable by the Association, provided, however, the Maintenance Fun herein created shall not be used for the common areas as herein described.  Further, the availability of any such utility service to any lot within the subdivision shall be subject to and conditioned upon the owner of each such lot complying with the rules and regulations of the Association and the payment of any such fees in regard to such utility service.

Any person negligently or willfully damaging or destroying all or any portion of the common areas shall be responsible to the Association for damages, and the Association shall use any funds collected by claim, lawsuit, or settlements agreement arising out of such damage or destruction, to repair such damage or destruction, to the extent of such funds.

Association shall have, and it is hereby granted, the full right, power, and authority to dedicate and/or convey all of its rights, titles and interest in and to the common areas or any part thereof and the Maintenance Fund as well as all of its powers, rights, liens, responsibilities, duties and authority under the terms hereof to a public or quasi-public corporation or entity with the power to tax such as a city, Hays County or a public district having such powers.  All references to Association shall apply with equal force and effect to any successor in interest to Association.


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CONSTRUCTION AND ARCHITECTURAL CONTROL

1. Architectural Control:  No structure, building, fence or driveway shall be erected, placed or altered on any tract until the construction plans and specifications and a plan showing the location of the structures has been approved by the Architectural Control Committee of two as to quality of workmanship and as to location with respect to topography and finish grade elevation.  The Architectural Control Committee of two is composed of Brady M. Lowe and Mark McManus.  In the event of the death or resignation of either, the executors of their estates shall have full authority to designate a successor.  The Committee of two as required in these covenants, shall indicate approval or lack of it in writing.  In the event the committee of two or its designated representative, fails to approve or disapprove within thirty (30) days plans and specification that have been submitted to it, approval will not be required and the related covenants shall be deemed to have been fully complied with.  The duties of this office shall be turned over to the Property Owner's Association at such time as all property within the subdivision has been sold by Declarant.

2. All fences on boundary lines fronting any subdivision roads shall be constructed with wood posts, to be conforming with other fence posts in the subdivision.  The specifications shall be detailed by the Architectural Control Committee.

3. All dwellings, exclusive of open porches, garages, carports and patios, shall be of at least 1700 square feet.


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BUILDING SET BACK LINES

1. Building set back lines shall be a guide to locating the house and varies as to location.  This line is not meant to encourage all houses to be aligned by to retain the estate concept and place houses away from the roadway.  It is encouraged for building sites to be a minimum of 100' from the front property line, with the exception of lots physically not allowing building sites with such set backs due to creeks, bluffs, natural topography, etc.

2.  No building shall be located on any lot or tract less than fifty (50) feet from front property line, no less than twenty-five (25) feet from side property line.  No structure shall be located nearer than fifty (50) feet to any side street.  Barns and out buildings must be built to the rear of the main house or within one hundred (100) feet of back property line.

3. No campers, buses, boats or recreation vehicles of any type shall be permitted on front one-half (1/2) of the lost or be visible from the roadway.  No structure other than fencing shall be permitted closer than twenty-five (25) feet from any side property line.


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MISCELLANEOUS

1. If, through error or oversight or mistake, any owner of a parcel of lands builds, or causes to be built, any structure thereon which does not conform to all the limitation and restrictions herein recited, it is expressly herein provided that such non-conformity shall in no way effect these limitations or restrictions insofar as they apply to any and all other parcels of said land.  Any delinquency or delay on the part of the party or parties having the right to enforce these restrictions shall not operate as a waiver of such violation, and such delinquency or delay shall not confer any implied right on any other owner or owners of parcels of said land to change, alter or violate any of the restrictions and limitations herein contained.

2. Declarant hereby retains the right, in the furtherance of the uniform plan for the development of such property as a residential neighborhood, to execute amendments to, including granting variances from and on, the aforesaid restrictive covenants and use limitations on such property imposed by this instrument, provided he, in the exercise of his best judgement and discretion, is of the opinion that any such amendment or variances would enhance the plan for the development of such property, save trees or utilize a better building site.

3. The restrictive covenants and use limitations herein provided for on such land are hereby declared to be covenants running with the land and shall be fully binding upon all persons acquiring title to any such parcels; including the right to acquire title to any such parcels by contract or otherwise of said land whether by descent, devise, purchase or otherwise, and any person procuring the right by contract to acquire title to any parcel of such land, shall thereby agree to the covenants and use limitations herein provided for on such land by virtue of the filing hereof in the Deed Records of Hays County, Texas, and with this being true without regard to whether or not such person has actual notice of these restrictive covenants and use limitation on such land by reference hereto in the instrument or instruments under which he acquired the title to, or the right to acquire title to, any parcel of land.

4. he restrictive covenants and use limitation herein published and impressed on all parcels of said land shall be binding on all of the owners parcels or portions of said land for a period of twenty (20) years unless by a vote of the owners of two-thirds of the property herein described, taken prior to the expiration of said twenty (20) years and filed for record in the Deed Records of Hays County, Texas, it is agreed that these restrictive covenants and use limitations shall terminate as to said land.  The same percentage shall be required to amend these restrictions, with the exception that Declarant reserve the right to amend this instrument and grant variances as set out in Paragraph No. F2 above.

5. It is expressly understood that the undersigned, it's successors, legal representatives or assigns, or any one or more of the owners of parcels of said land, shall have the right to enforce the restrictive covenants and use limitations herein provided for on such land by injunction, either prohibitory or mandatory or both in order to prevent a breach thereof or to enforce the observance thereof, which remedy however shall not be exclusive and the undersigned, it's successors, legal representatives and assigns, or any other person or persons, owning parcels of said land, injured by virtue of any breach of the restrictive covenants and use limitations herein provided for on such land shall accordingly have their remedy for the damages suffered by any breach, and in connection therewith it is controllingly understood that in the event of a breach of these restrictive covenants and use limitations by the owner of any parcel of said land it will be conclusively presumed that the owners of other said parcels of said land have been injured thereby.

WITNESS OUR HANDS THE 12TH DAY OF SEPTEMBER, 1990.

                                                                                   BRADY M. LOWE

THE STATE OF TEXAS

THE COUNTY OF HAYS

This instrument was acknowledged before me on this 12th day of September, 1990 by BRADY M. LOWE.

EVELYN POSTON
Notary Public, State of Texas

EVELYN POSTON
Notary Public, State of Texas
My Commission Expires
March 25, 1993

FILED IN
HAYS COUNTY TEXAS

NOVEMBER 29, 1990 ... 2:00 P.M.

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