WHEREAS, Tom Keeton Family Limited Partnership, a Texas Limited Partnership, desires to make a quality development with restrictions, covenants, impositions, easements, charges and liens as hereinafter set forth for the preservations of the property values of the OWNERS therein.

NOW, THEREFORE, Tom Keeton Family Limited Partnership, a Texas Limited Partnership, declares that the property described as Cahan Ranch Estates, Phase I, including Lots 1 through 12, a platted subdivision filed in Fannin County land records Plat Cabinet B, Plat 31, in ARTICLE 1 is and shall be held, transferred, sold, conveyed, and occupied subject to the restrictions, covenants, impositions, easements, charges and liens hereinafter set forth as CORRECTION RESTRICTIONS replacing Restrictions previously filed at Volume 1107, Page 497, in Fannin County, Texas.

Only one main residence, no more than two stories in height, and its related outbuildings shall be permitted on each lot. No lot can be subdivided or divided into a smaller tract. Dwelling may be permanently affixed without prior written approval of Developer, subject to the following conditions:

A. All dwellings shall have a minimum of 1200 square feet under roof and must be a "site built" home only. The exterior wall areas of each structure built upon any Lot shall have not less than fifty percent (50%) masonry exclusive of window and door openings. In computing the area covered by masonry, door and window openings on a masonry wall shall be measured from the top of the slab to the top of standard door and window openings and shall not include the gable. The Developer and/or its assigns shall have the power to waive this masonry requirement upon submission of a specific design which aesthetically and architecturally blends with and enhances the Property and will not adversely affect the value of adjacent Lots.

B. Any structure other than a dwelling placed on the property shall be of new construction and all wood exterior material shall have no less that two coats of paint. No trailer, basement of any incomplete building, tent, shack, garage or barn, and no temporary building or structure of any kind shall be used at any time for a residence, either temporary or permanent. Temporary buildings or structures used during the construction, repair, or remodeling of a dwelling on any such Lot shall be moved immediately after the completion of construction. No mobile home, permanent tent, portable storage building or sheds, or similar structure, or inoperable motor vehicle of any type shall be stored, maintained, constructed, reconstructed, or repaired upon any Lot in such a manner as will be visible from neighboring property or from any street; provided, however, that the provisions of this paragraph shall not apply to emergency vehicle repairs or temporary construction shelters or facilities maintained during, and used exclusively in connection with, the construction of any improvement approved by the Developer and/or its Assigns. In addition, no motor vehicle of any type, whether operable or inoperable, may be constructed, reconstructed, or repaired upon any Lot or street in such a manner as will be visible from neighboring property or any street.

C. All dwelling/structures must be completed within one hundred eighty (180) calendar days after the beginning of construction. Reasonable extensions may be granted by the Developer. The outside premises shall be free of all debris and landscaped as provided herein within the 180 day period. No improvements situated upon any Lot shall be permitted to fall into disrepair, and all such improvements shall at all times be kept in good condition and repair and adequately painted or otherwise finished. Because the maintenance of environmental and architectural harmony and unity is essential for the preservation and enhancement of the value of the Lots and the harmonious functioning of the Property, no improvements may be constructed or erected on any Lot by anyone other than the Developer without the prior written approval of the Developer and/or its Assigns appointed in accordance with this Declaration.

D. Vehicles shall have currently valid licenses and inspection stickers, be operable and in good condition. No wrecked cars shall be allowed on any Lot.

E. One Mailbox per dwelling may be installed, bearing the owner's name as specified by the Developer and acceptable to the post office.

F. All dwellings shall have a driveway, a minimum of twelve feet (12') wide, from the street to the carport or garage. Drives shall be gravel, concrete or asphalt paving. No used construction materials will be acceptable.

G. Each Lot owner shall landscape all of his/her lot not covered by buildings, sidewalks or parking, including all set-back areas. No tree over six (6) inches in diameter shall be cut without the prior written consent of the Developer and/or its Assigns.

H. No animals or birds, other than a reasonable number of generally recognized house or yard pets shall be maintained on any Lot and then only if they are kept or raised thereon solely as domestic pets and not for commercial purposes. No animal or bird shall be allowed to make an unreasonable amount of noise, or to become a nuisance. No structure for the care, housing, or confinement of any animal or bird shall be maintained so as to be visible from neighboring property or any street. Upon the written request of any Owner, the Developer and/or its Assigns shall conclusively determine, in its sole and absolute discretion, whether for the purposes of this Section, a particular animal or bird is a generally recognized house or yard pet, or a nuisance, or whether the number of animals or birds on any such property is reasonable.

I. The land and improvements located on each Lot shall not be used so as to disturb the neighborhood or occupants of adjoining property, or to constitute a nuisance or to violate any public law, ordinance or regulation from time to time applicable thereto. Nor shall such land and improvements be used for any purpose which will create or emit any objectionable, offensive or noxious odors, dust, gas, fumes, or other such material.

J. No portion of any lot shall be used for storage or accumulation of junk, abandoned automobiles, rubbish, used lumber or any material which might detract from the general appearance and attractiveness of the surrounding area. No nuisance shall be permitted to exist or operate upon any such property so as to be offensive or detrimental to any other property in the vicinity thereof or to its occupant. Without limiting the generality of any of the foregoing provisions, no exterior speakers, horns, whistles, bells or other sound devices, except security devices used exclusively for security purposes, shall be located, used, or placed on any such property. No Lot Owner shall permit any thing or condition to exist upon any Lot which shall induce, breed, or harbor plant diseases or noxious insects. Each lot owner shall be required to keep the grass on each lot mowed so that it shall not be higher than twelve inches (12"). If any owner defaults in this obligation, Developer or its assigns or successors in interest may mow the grass and charge the defaulting lot owner the reasonable cost thereof. However, nothing contained herein shall be construed to obligate the Developer or its assigns or successors to keep the grass mowed on any lot.

K. No garbage or trash shall be placed or kept on any Lot except in covered containers of a type, size and style which are approved by the Developer and/or its Assigns, which may include the requirement that all containers be disposable. In no event shall such containers be maintained so as to be visible from neighboring property except to make the same available for collection and, then only the shortest time reasonably necessary to effect such collection.

L. Outside clothes line or other outside facilities for drying or airing clothes shall not be erected or maintained on any Lot.

M. No Lot shall be used in any manner to explore for or to remove any water, oil, or other hydrocarbons, minerals of any kind, gravel, earth or any earth substance of any kink.

N. Without the approval of the Developer and/or its Assigns, no machinery or equipment of any kind shall be placed, operated, or maintained upon or adjacent to any Lot except such machinery or equipment as is usual and customary in Fannin County, Texas, in connection with the use, maintenance, or construction of a private residence or multifamily structure, or appurtenant structures or recreational facilities; provided, however, such machinery or equipment may be placed, operated, or maintained by any governmental, or quasi-governmental agency of a public utility when performing its governmental functions.

O. After the Developer has sold all of the Lots, the Architectural Control Committee shall be appointed by a majority vote of the Owners of the Lots. Each Lot shall have one vote to be exercised as the Owner(s) thereof elect. At such time as the Developer contracts for the sale of the last Lot in the subdivision, it shall notify each Owner of a Lot of such fact so that the Owners will have actual knowledge of the necessity for action to appoint an Architectural Control Committee. Notice shall be sufficient if mailed by U.S. Mail to each address of every Lot in the subdivision, whether or not the Developer then knows the name of each Owner.

P. Each dwelling shall have a septic system designed in accordance with the requirements and recommendations of the county health officer. Such septic system must be installed and approved by county health officer prior to occupancy of the dwelling.

Q. No business or commercial pursuits shall be permitted on any lot.

R. No above ground structure, except for trees and shrubs, shall be permitted nearer than one hundred feet (100') to the front property line, nor closer than ten feet (10') to any property line of any lot. No barns or outbuildings, other than garages or other structures incidental to the main dwelling, shall be constructed nearer than one hundred feet (100') to the front property line, and no outbuilding shall be used for living quarters.

S. All easements for the installation and maintenance of utilities and drainage facilities are reserved as indicated. No shrubbery, fence or other obstruction shall be placed in any easement, and full right of ingress and egress shall be had at all times over any dedicated easement for the installation, operation, maintenance, repair or removal of any utility, together with the right to remove any obstruction that may be placed in such easement.

Enforcement shall be by proceeding at law or equity against any person or persons violating or attempting to violate any covenant, either to restrain violation or to recover damages. Invalidation of any one of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect.

All tracts are subject to all easement and restrictions of record and are subject to any applicable zoning rules and regulations. All rights of adjoining property owners as to drainage shall prevail and shall not be obstructed. The right to enter one's property is granted to each adjoining property owner one to the other to maintain and insure proper drainage on and across adjoining property.