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NOTICE AND RESTRICTIVE COVENANT AGREEMENT <br />THIS NOTICE AND RESTRICTIVE COVENANT AGREEMENT (this <br />"Agreement") is made and entered into as of the day of , 2022, by <br />and between Highlander Real Estate Partners, LLC, (the "Owner"), and the City of San Marcos, <br />Texas (the "City"). <br />RECITALS: <br />A. Owner is the owner of a tract of land totaling approximately 136.912 acres situated <br />in Hays County, Texas, more particularly described in Exhibit 'A", attached hereto (the <br />"Property"). <br />B. Owner desires to develop the Property for single-family residential housing. <br />C. The Property is adjacent to certain real property owned by Hays Energy, LLC, <br />which sites a combined cycle natural gas power plant that produces electric power (the "Power <br />Plant"), and, consistent with typical plant operations, the Power Plant emits noise and lighting <br />that could be considered disruptive to residential homeowners in proximity to the Power Plant. <br />D. Owner and the City desire to subject the Property to the terms of this Agreement. <br />NOW, THEREFORE, in consideration of the sum of Ten and No/100 Dollars ($10.00), <br />and other good and valuable consideration, the receipt and sufficiency of which the parties hereby <br />acknowledge, the Owner and the City do hereby agree as follows: <br />1. Notice and Restrictive Covenant. The Parties hereto agree and acknowledge that <br />the Property shall be held, sold, transferred, conveyed and occupied subject to the following notice <br />and restrictive covenants: <br />a) Notice. That the Property is located in proximity to a combined cycle natural <br />gas power plant, and, that the purchaser of lots and those residing therein may experience <br />any of the following as a result of Power Plant operations, even if such operations are in <br />full compliance with the City of San Marcos zoning and ordinances and all applicable <br />permits issued by the Texas Commission on Environmental Quality (TCEQ): <br />■ Noise; and <br />■ Industrial lighting. <br />b) Restrictive Covenants. The Owner of the Property shall: <br />i) establish Home Owners Association guidelines which shall require <br />that all residences constructed within 1,500 linear feet from the closest Power Plant <br />vertical structure, in existence on the date of the execution of this Agreement, <br />provide masonry on any fagade facing the Power Plant; <br />