Section 2

FOREST COVE, SECTION TWO

THE STATE OF TEXAS

KNOW ALL MEN BY THESE PRESENTS:

COUNTY OF HARRIS

WHEREAS, FOREST COVE DEVELOPMENT COMPANY is the owner of a tract of land
which has been subdivided and platted as FOREST COVE, SECTION TWO, according
to the unrecorded plat of said subdivision as prepared by

T. C. EDMINISTER, Registered Engineer, Registration Number 9949, dated
July, 1961, the boundary of said subdivision being more fully described
by metes and bounds as follows:

NOTE: Legal description deleted in the interest of economy.

WHEREAS, it is deemed to be in the best interest of said corporation
and of the persons who may purchase lands described in and covered by the
above mentioned plat that there be established and maintained a uniform
plan for the improvement and development of the lots covered thereby as
a highly restricted and modern subdivision;

NOW, THEREFORE, FOREST COVE DEVELOPMENT COMPANY, being the owner of all
of said lots, acting herein by and through its officers duly authorized
to do so by its Board of Directors, do hereby adopt the following covenants
and restrictions, which shall be taken and deemed as covenants to run with
the land and shall be binding on FOREST COVE DEVELOPMENT COMPANY and all
parties and persons claiming under it until March 1, 1986, at which time
said covenants, conditions, and restrictions shall be automatically extended
for successive periods of ten years each unless by duly recorded instrument
signed by a majority of the property owners in said addition it is agreed
to change said covenants, conditions and restrictions in whole or in part.

If FOREST COVE DEVELOPMENT COMPANY, or any of its successors or assigns
shall violate or attempt to violate any of the covenants herein it shall
be lawful for any person or persons owning any real property situated in
the above referred to subdivision to prosecute any proceedings at law or
in equity against the person or persons violating or attempting to violate
any such covenants and either to prevent him or them from so doing or to
recover damages or other dues for such violations.

Invalidation of any of these covenants by judgment or court order shall
in no wise affect any of the other provisions which shall remain in full
force and effect.

(a) No lot shall be used except for residential purposes. The term residential
purposes~’ as used herein shall be held and construed to exclude hospitals,
clinics, duplex houses, apartment houses, boarding houses, hotels, and to
exclude commercial and professional uses whether from homes, residences
or otherwise, and all such uses of said property are hereby expressly prohibited.
No building shall be erected, altered, placed or permitted to remain on
any lot other than one detached single family dwelling not to exceed two
stories in height, a private garage for not more than three (3) cars, and
a boat house, pier, and other appurtenances necessary for the enjoyment
of the water facilities of Lake Houston by a private family.

(b) No building or construction of any type shall be erected, placed
or altered on any building plot in this subdivision until two (2) sets of
the building plans, specifications, and plot plan showing the location of
such buildings have been approved in writing as to conformity and harmony
of external design with existing structure in the subdivision, and as to
location with respect to topography and finished ground elevation, by a
committee composed of three (3) officers of FOREST COVE DEVELOPMENT COMPANY,
or by a representative named by a majority of the members of said committee.
In the event of death or resignation of any member of said committee, the
remaining member or members shall have full authority to approve or disapprove
such design and location or to designate a representative with like authority.
In the event such c9mmittee, or its designated representatives, fail to
approve or disapprove such design and location within thirty (30) days after
said plans and specifications have been submitted to it, such approval will
not be required and this covenant will be deemed to have been complied with.
Neither the members of such committee nor its designated representatives
shall be entitled to any compensation for services performed pursuant to
this covenant. The duties and powers of such committee, and of its designated
representatives shall cease on and after ten (10) years from date. Thereafter,
the approval described in this covenant shall be vested in the FOREST COVE
PROPERTY OWNERS ASSOCIATION, INC., which shall thereafter exercise the same
powers previously exercised by said committee.

(c) No building shall be placed or maintained on any lot nearer to the
street than the front or side street building set-back lines shown on the
unrecorded plat. No residences shall be maintained nearer to an interior
lot line than five (5) feet. All improvements on waterfront lots shall be
constructed to face the waterfront and all improvements constructed on non-waterfront
lots shall be constructed on the site to front on the street upon which
the site faces, and each corner site shall face the street on which it has
the smallest frontage, unless otherwise approved by the ARCHITECTURAL CONTROL
COMMITTEE. Houses constructed on Lots One (1) through Six (6), inclusive,
in Block Four (4) shall front on Marina Drive and their drives must open
on that street.

(d) No residential structure shall be erected or placed on any building
plot which has an area of less than 12,000 square feet and only one residential
structure may be placed on any residential lot.

(e) No trailer, basement, tent, shack, garage, barn or other outbuilding
erected on the tract shall be at any time used as a residence, temporary
or permanent, nor shall any structure of a temporary character be used as
a residence.

(f) No residential structure shall be placed on a lot unless its living
area has a minimum of 1,000 square feet of floor area exclusive of porches
and garages.

(g) The exterior walls of all residences shall be at least fifty-one
per cent brick, brick-veneer, stone veneer, concrete or other masonry type
construction, but the ARCHITECTURAL CONTROL COMMITTEE, as outlined in paragraph
(b) above, shall have the power to waive the masonry requirements so as
to allow the erection of all redwood panel walls or all cedar panel walls.

(h) No fence, wall, hedge, nor any pergola or other detached structure
higher than two (2) feet above the ground, shall be erected, grown or maintained
on any part of any lot forward of the front building line of said lot. No
massed planting which would interfere with the view of cross traffic shall
be allowed on a corner lot.

(i) No noxious or offensive trade or activity shall be carried on upon
any lot or shall anything be done thereon which may be or become an annoyance
to the neighborhood.

(j) The raising or keeping of hogs, horses, poultry, fowls, or of other
livestock on any part of the subdivision is strictly prohibited.

(k) No water well shall be permitted.

(1) No spirituous, vinous or malt liquors, or medicated bitters, capable
of producing intoxication, shall be sold or offered for sale, on any site
in FOREST COVE, SECTION TWO. No premises or any part thereof shall be used
for vicious, illegal, or immoral purposes, nor for any purpose in violation
of the laws of the State of Texas, or of the United States, or of police,
health, sanitary, building or fire code regulations or instructions relating
to or affecting the use or occupancy or possession of any of said sites.

(m) No sign of any kind shall be displayed to the public view except
one sign of not more than five square feet, advertising the property for
sale or rent, or signs used by builders or FOREST COVE DEVELOPMENT COMPANY
to advertise the property during the construction and sales period.

(n) No lot shall be used or maintained as a dumping ground for rubbish.
Trash, garbage, or other wastes shall not be kept except in sanitary containers.
All incinerators or other equipment for the storage or disposal of such
material shall be kept in a clean and sanitary condition.

(0) No boats or trailers may be parked in front of the front building
line of any lot.

(p) Easements affecting all lots in this subdivision are reserved, as
shown on the official unrecorded plat, for the installation and maintenance
of utilities and drainage facilities, and in addition to the easements shown
on said plat; there is hereby designated and dedicated for use of all public
utilities, an unobstructed aerial easement five (5) feet wide from a plane
twenty (20) feet above the ground, upward, located adjacent to said easements
as shown on said plat.

(q) Title to any lot or portion thereof shall not include title to any
utility lines in, under, or on, any easement or street.

(r) All residents shall use water services provided by Forest Cove Utility
Company, and no other, and at the time of the installation of the water
tap and water meter for said lot the builder or owner shall pay to Forest
Cove Utility Company, or its assignee, a tap fee of One Hundred Twenty-Five
($125.00) Dollars.

(5) All concrete pipe under driveways must be at least 18 inches in diameter
and may be of a greater dimension when required by the ARCHITECTURAL CONTROL
COMMITTEE.

(t) Beginning January 1, 1962, each residential lot in FOREST COVE, SECTION
TWO, which fronts on Lake Houston shall be subject to an annual maintenance
charge of $20.00 per lot per year and each residential lot which does not
have such waterfrontage shall be subject to an annual maintenance charge
of $10.00 per lot per year, for the purpose of creating a fund for the use
and benefit of the FOREST COVE PROPERTY OWNERS ASSOCIATION, INC., a non-profit
corporation; such charges are to be paid by the then owner of each lot in
connection with like charges to be paid by the owners of other lots in FOREST
COVE, SECTION TWO. This maintenance charge is to be paid annually on the
first day of January of each year and there shall be 6% interest charged
on any delinquent payments. The maintenance charge shall be secured by a
vendor’s lien upon such lots, but said vendor’s lien shall be secondary
and subordinate to any valid first mortgage purchase lien or mechanic’s
and materialman’s lien for the purchase or construction of a residence or
other improvements on said lots.

FOREST COVE PROPERTY OWNERS ASSOCIATION, INC. shall apply the total of
the sums so collected, so far as they may be sufficient for the repair and
maintenance of streets and vacant lots and for the maintenance of the waterfront
of said property including, but not by way of limitation, the dredging of
channels, and for doing any other things which in the opinion of said Association
are necessary or desirable to improve or maintain the property and which
is of general benefit to the owners or occupants of FOREST COVE, SECTION
TWO.

The annual charge for maintenance may be adjusted by the Association
from year to year as the needs of the property may, in their judgment, require,
but shall in no event be set at a higher amount than hereinabove stated,
except by duly recorded petition signed by not less than three-fourths (3/4ths)
of the then property owners of FOREST COVE, SECTION TWO, and in that event
such an increase shall be binding upon all of the then property owners in
said subdivision.

(u) Nothing herein contained shall serve to restrict or reserve in any
manner any land other than the land described in the unrecorded plat of
FOREST COVE, SECTION TWO, as described above by metes and bounds.

(v) Any violation of any of the covenants, agreements, reservations,
easements and restrictions herein shall not have the effect of impairing
or affecting the rights of any mortgagee, trustee or grantor, under any
mortgage, or deed of trust, or to the assignee of any mortgagee, trustee,
or guarantor, under any such mortgage or deed of trust, outstanding against
the said property at the time that the easements, agreements, restrictions,
reservations, or covenants may be violated.

EXECUTED this 27th day of July , 1961.

FOREST COVE DEVELOPMENT COMPANY

By: Howard E. Edmunds President

THIS IS A COPY. AN OFFICIAL COPY IS ON FILE WITH THE FOREST COVE PROPERTY OWNERS ASSOCIATION, INC.