Document

REST aii ran AD CRANE AAMLLADMACMc Certificate of cf Hills Of Bandera Ranch Pr Nwners Association (HOBRPOA) (BageQand Medina Counties) The undersigned, Michael H S\Sereby certifies that he is the acting Managing Agent for the Hills of Bandera Ranch Pr Owners Association, (HOBRPOA), a Texas non-profit corporation; that, as suc is the keeper of the records and minutes of the proceedings of the Association, which is rganized and existing under the laws of the State of Texas. The undersigned herebyyy er certifies as follows: og d hereto in accordance with the provisions of applicable laws true and complete copy of the Certificate of Formation W xhibit “A”), the Bylaws (Exhibit “B”) and Declaration of Covenants (Exhibit “C”) and Subdivision Plats (Exhibit “D”) for the Hills of Bandera Ranch Property Owners Association which has not been amended, modified or rescinded, except as attached hereto, and is in full force and effect on the date hereof.

STATE OF TEXAS COUNTY OF BANDERA > COUNTY OF MEDINA Ni AS) This instrument was acknowledged bef Michael Hagar, Managing Agent/Tr Owners Association, a Texas non that the foregoing was true a corporation, on its behalf, who stated before me to the best of his knowledge and belief.

Ann 3 Bae, Notary Public, State of Texas ee ear ey AFTER oon RETURN THIS INSTRUMENT TO: W HOBRPO 810 Mustang Pass Bandera, Texas 78003 2014030325 03/07/2014 01:47:03 PM Page 2 of 41 CERTIFICATE OF FO TION 9S KS HILLS OF ERA RANCH PROPERTY O S ASSOCIATION, INC.

Age Non-Profit Corporation) I, the undersigned nat rson over the age of eighteen years, acting as the organizer of

of 41 CERTIFICATE OF FO TION 9S KS HILLS OF ERA RANCH PROPERTY O S ASSOCIATION, INC.

Age Non-Profit Corporation) I, the undersigned nat rson over the age of eighteen years, acting as the organizer of a corporation under the Business Organizations Code do hereby adopt the following Certificate of Fonnatige S) uch corporation: ARTICL constitute a HOMEOWNERS ASSOCIATION. The corporation shall be, mean and ory “property owners association” organized pursuant to Texas Property Code 202 r which is defined as the “Association” in the Declaration of Covenants, coniiog Restrictions (“Declaration”), to be recorded in the Official Records of Bandera and Medir™ Counties, Texas, as may be amended from time to time, with respect to certain real property located in Bandera and Medina Counties, Texas known as Hills of Bandera Ranch, a residential development.

ARTICLE 2. NAME. The name of the Association is HILLS OF BANDERA RANCH PROPERTY OWNERS ASSOCIATION, INC.

ARTICLE 3. NON-PROFIT. This Certificate of Formation is being filed to create nonprofit corporate status for the Association pursuant to the Texas Business Organizations Code.

ARTICLE 4. DURATION. The duration of the Association shall be perpetual.

ARTICLE 5. GOVERNING DOCUMEN', As used herein, the Governing Documents of the Association shall mean this C of Formation, the Declaration, the — Bylaws of the Association, all rules, regulation ies, guidelines, and all other documents that govern the Association, as each may be a from time to time.

ARTICLE 6. PURPOSES. noe purposes for which the Association is formed are to exercise the rights and powe@y d to perform the duties and obligations of the Association, in accordance with ming Documents and State Law.

ARTICLE 7. POWE following powers which, may be exercised by

exercise the rights and powe@y d to perform the duties and obligations of the Association, in accordance with ming Documents and State Law.

ARTICLE 7. POWE following powers which, may be exercised by “Ain furtherance of its purposes, the Association shall have the indicated otherwise by the Governing Documents or State Law, of Directors: i All ts and powers conferred upon non-profit entities by State Law in effect ime to time; @; Exaeit Ss ‘A SN 2014030325 03/07/2014 01:47:03PM Page 3 of 41 2. All rights and powers conferred upon propegty owners associations by State Law, including under Texas Property Code Ti in effect from time to time; and 3. All powers necessary, appropriate QNieable to perform any purpose or duty of the Association as set out in the* ming Documents or State Law.

6G ARTICLE 8... MEMBERSHIP. OS Association shall be a non-stock membership organization. The Declaration and B § shall determine the number of qualifications of the members of the Association; th rights and other privileges of membership; and the obligations and liabilities of "wy * Cumulative voting is not allowed.

ARTICLE 9. M EMENT BY BOARD. The management and affairs of the Association shall be ye the Board of Directors, except for those matters expressly reserved to others in the Go ing Documents. The Bylaws shall determine the number and qualification of di rs; the term of office of directors, the method of electing, removing and replacing dire d the methods of holding a board meeting and obtaining consents.

eQhix 10. LIMITATIONS OF LIABILITY.

a. Except as provided in Paragraph d below, a director of the Association is not liable to the Association or its members for monetary damages for acts or omissions that occur in the person’s capacity as a director except to the extent a

below, a director of the Association is not liable to the Association or its members for monetary damages for acts or omissions that occur in the person’s capacity as a director except to the extent a person is found liable for: (i) a breach of the director’s duty of loyalty to the Association or its members; (ii) an act or omission not in good faith that constitutes a breach of duty of the director to the Association; (iii) an act or omission that iavolugSentona misconduct or knowing violation of law; cps (iv) a transaction from of director receives an improper benefit, whether or not the ben: sulted from the action taken within the scope of the person’s offi (v) an act or omy 2 for which the liability of a director is expressly provided 4 lhicable statute.

b. An officer i “Yr le to the Association or any other person for an action taken or omissi de by the officer in the person’s capacity as an officer unless the officer duct was not exercised: sO. | SS in good faith; 2014030325 03/07/2014 01:47:03PM Page 4 of 41 (ii) with ordinary care; and \ (iii) in a manner the officer as QQ eves to be the best interest of the Association.

/ o The liability of officers, dj » and other volunteers of the Association may also be limited by the Ch e Immunity and Liability Act of 1987, Chapter 84, Texas Civil Practice ePrice Code, as amended.

liability of an officer, as director or volunteer does not that person’s liability as a member of the Association. It is liability of any member arising out of any contract made by the t out of the indemnification of any officer, director or volunteer, or for d s as a result of injuries arising in connection with the common ele Des, or for liabilities incurred by the Association, shall be limited to the

ication of any officer, director or volunteer, or for d s as a result of injuries arising in connection with the common ele Des, or for liabilities incurred by the Association, shall be limited to the proportion in which he is liable for common expenses as a member of the sociation.

The limitation o eliminate or ‘ Sur 11. INDEMNIFICATION. Subject to the limitations and requirements of Chapter 8 of the Business Organizations Code, the Association shall indemnify a person: who was, or is threatened to be, made a named defendant or respondent in a proceeding because the person is or was an officer, director, committee chair or committee member of the Association.

Additionally, the Association may indemnify a person who is or was an employee, trustee, agent or attorney of the Association, against any liability asserted against him and incurred by him in such a capacity and arising out of his status as such a person.

ARTICLE 12. AMENDMENT OF THE CERTIFICATE OF FORMATION. This Certificate of Formation may be amended or restated in accordance with the Business Organizations Code, subject to the following: 1. An amendment shall not conflict with eePetaration or applicable State Law, Including Title 11 of the Texas Prop e, in effect from time to time.

zs: An amendment shall not impair dilute a right granted to a person by the Declaration, without that pest rittn consent.

3. Any amendment must accordance with the applicable provisions of the Business Organizatj de.

4, Without memttNpproval, the Board of Directors may adopt amendments permitted by 10n 22.107 of the Business Organizations Code.

ARTICLE 133 ING UP.: The Association may be wound up only as provided in the Declaration, B and State Law.

ee ee SN 2014030325 03/07/2014 01:47:03PM Page 5of 41

107 of the Business Organizations Code.

ARTICLE 133 ING UP.: The Association may be wound up only as provided in the Declaration, B and State Law.

ee ee SN 2014030325 03/07/2014 01:47:03PM Page 5of 41 ARTICLE 14. ACTION WITHOUT A MEET . Pursuant to Sections 6.202 and 22.220 of the Business Organizations Code, any me red by Chapter 22 of the Business Organizations Code to be taken at a meeting of th ers of owners, or any action that may be taken at a meeting of the directors or memb any committee, may be taken without a meeting if a consent in writing setting forth’. ction to be taken is signed by a sufficient number of members, owners, directors, efomtnitiee members as would be necessary to take that action at a meeting at which all & members, owners, directors, or members of the emg BODY. The initial governing body shall who shall serve as directors until their successors shall have provided in the Bylaws. The name and address of each initial ARTICLE 15. INIT.

consist of a board of five di been elected and vee director is as follows: C5 Jo Ann J 102 E. Street we exas 76950 Brooks Myers 13626 Vermarion Houston, Texas 77070 Susan Farrell 322 Lakeside Blvd.

Sugarland, Texas 77478 Thomas Miller 902 Crestview Drive Laredo, Texas 78045 Michael Hagar S 801 Mustang Pass os Bandera, Texas 78003 \ ¢ oe | ARTICLE 16. REGISTERED ASN . The name of the Association’s registered agent and registered office is: & Grady B. Jolley 1580 South Main, Sui Boerne, Texas 78 2014030325 03/07/2014 01:47:03PM Page 6 of 41 ARTICLE 17. ORGANIZER. The name and addaggs of the organizer is: Grady B. Jolley cps 1580 South Main, Suite 200 “N Boerne, Texas 78006 oP This Certificate of Formation pertains to the Hills

ARTICLE 17. ORGANIZER. The name and addaggs of the organizer is: Grady B. Jolley cps 1580 South Main, Suite 200 “N Boerne, Texas 78006 oP This Certificate of Formation pertains to the Hills of Bandera Ranch, being a develo t of 230.74 acres located in Bandera and Medina Counties, Texas, to be described f ious plats to be filed in the Official Records of Bandera and Medina Counties, Texas, ay be amended, supplemented and restated from time to time, together with all real ope be annexed thereto from time to time.

ARTICLE 18. REAL PROPE ARTICLE 19, GE IN STATUS. The continuing existence of the Association as described in the Go g Documents is vested in its members. During any period in which the Association is nga@Xorporated or loses its corporate status, it will be subject to the Texas rated Nonprofit Association Act and this Certificate of Formation shall ective as a Governing Document of the Association.

continue t S undersigned signs this document subject to the Pen Tose by law for the ay of May, 2013.

submission of a materially false or fraudulent instrument on this Lie THE STATE OF TEXAS COUNTY OF KENDALL § Before me, GRADY B. JOLLEY, personally ap, don ie, of May, 2013, known to me to be the person whose name is subscrjh he foregoing instrument.

f} 2014030325 03/07/2014 01:47:03 PM Page 7 of 41 BYLAWS OF HILLS OF BANDE CH PROPERTY OWNERS ATION, INC.

AR Et 2 tio Property Defined W _— 1.01. Property shall nag Sos in the platted units of the following real property located in Bandera and Medi unties, Texas, to be known as Hills of Bandera Ranch subdivision, including the lJagQ Ol improvements and structures on the land; and all easements, rights, and appurtenances land, more particularly described in Exhibit “A” attached hereto and made a part here S

on, including the lJagQ Ol improvements and structures on the land; and all easements, rights, and appurtenances land, more particularly described in Exhibit “A” attached hereto and made a part here S Also, Pro, shall mean and refer to that certain real property herein before described and such addafa@ye thereto as may hereafter be brought within the jurisdiction of the Property Associati einafter defined.

mS Defined 1.02. Declarations shall mean the Declaration of Covenants, Conditions, Easements and Restrictions of Hills of Bandera Ranch and filed and recorded in the Official Public Records of Bandera County, Texas, on June 28, 2007, in Volume 7, Pages 10-16 and filed and recorded in the Official Public Records of Medina County, Texas on June 28, 2007, in Volume 10, Pages 5662, including any amendments to the Declaration as may be made from time to time in accordance with the terms of the Declaration and any declarations of restrictive covenants, conditions, and restrictions on the Property filed and recorded for each platted unit of the Property.

Other Terms Defined 1.03. “Notice” shall include Notices in mailed using the United States Postal Service or other similar postal service; hand-deljvOxe§>or via electronic mail.

¢ 1.04. Other terms used in these a: shall have the meaning given them in the Declaration, incorporated by reference ¢ a part of these Bylaws.

ys ARTICLE 2 Applicability of Bylaws Corporation © 2.01. The PQ Ptr of these Bylaws constitute the Bylaws of the nonprofit corporation known as Hills ndera Ranch Property Owners Association, Inc. referred to as the “Associations es , Bylaws Q; ‘ ExnietT ®B SN 2014030325 03/07/2014 01:47:03PM Page 8 of 41 Property Applicability 2.02. The provisions of these Bylaws are applicable to the Property as defined in

the “Associations es , Bylaws Q; ‘ ExnietT ®B SN 2014030325 03/07/2014 01:47:03PM Page 8 of 41 Property Applicability 2.02. The provisions of these Bylaws are applicable to the Property as defined in Paragraph 1.01 of these Bylaws.

ecroemel Appiiead os ersonal Application \ ° 2.03. All present or future owpe ir employees, or other persons that use the Property in any manner are subject to ations set forth in these Bylaws. The acquisition or rental of any of the Property, or th @ f occupancy of any of the Property, will signify that these Bylaws are accepted and and will be complied with by the purchaser, tenant, or occupant.

* eee 3 C5 Offices Principal Officend \ 3.Q1 & temporary principal office of the Association shall be located in Bandera County at 810 Mustang Pass, Bandera, TX 78003. The Association may have other offices.

Registered Office and Registered Agent 3.02. The Association shall have and shall continuously maintain in the State of Texas a registered office and a registered agent, whose office shall be identical with the registered office, as required by the Texas Non-Profit Corporation Act. The registered office may be, but need not be, identical with the principal office of the Association, and the Board of Directors may change the address of the registered office from time to time.

ARTICLE 4 Activities Operations \ SX 4.01. The Association’s operations s alos Articles of Incorporation of the Corporation., Qs ON ICLE 5 Quali ‘ons for Membership Membership we 5.01. The mem Si the Association shall consist of all of the Owners of the Property and may not ated from ownership of a Lot(s).

Lonfined to the purpose set forth in the d SS sia eh 2014030325 03/07/2014 01:47:03PM Page 9 of 41 Proof of Membership

of all of the Owners of the Property and may not ated from ownership of a Lot(s).

Lonfined to the purpose set forth in the d SS sia eh 2014030325 03/07/2014 01:47:03PM Page 9 of 41 Proof of Membership 5.02. The rights of membership shall not be exegeised by any person until satisfactory proof has been furnished to the Secretary of the Acsaeibn that the person is qualified as a Member. Such proof may consist of a copy of a uted and acknowledged deed or title insurance policy evidencing ownership of some the Property. Such deed or policy shall be deemed conclusive in the absence of a conflict, aim based on a later deed or policy.

¢ No Additional Qualifications ey S 5.03. The sole qualificatigN$S} membership shall be the ownership of a part of the Property. No initiation fees, cogtg, Of dues shall be assessed against any person as a condition of membership except such as ts, levies, and charges as are specifically authorized under the Articles of Incorporation Declaration.

Certificates of Membas ip Qo 5.04. oard of Directors may provide for the issuance of certificates evidencing crag SQye Association that shall be in such form as may be determined by the Board. All certific. idencing membership shall be consecutively numbered. The name and address of each Member and the date of issuance of the certificate shall be entered on the records of the Association and maintained by the Secretary at the registered office of the Association.

ARTICLE 6 Voting Rights Voting 6.01. Each Member of the Association shall be entitled to one vote for each Lot in which he holds the interest required for membership. When more than one person is an Owner, each is a Member, but only one vote may be cast for a Lot..

6.02. Members may cast their vote via ceca sent to the Secretary of the Board

equired for membership. When more than one person is an Owner, each is a Member, but only one vote may be cast for a Lot..

6.02. Members may cast their vote via ceca sent to the Secretary of the Board of Directors. cs Proxies ‘ > \ 6.02. At all meetings of Mem ch Member may vote in person or by proxy. All proxies shall be in writing or submi electronic survey distributed by the Association and filed or electronically logged wi Secretary of the Association. Every proxy shall be revocable and shal! automaticall on conveyance by the Member of the Member's Property interest or on receipt of noti Se Secretary of the death or judicially declared incompetence of such Member. No prox valid after twelve (12) months from the date of its execution, unless otherwise specileg provided in the proxy.

se Bylaws ss 2014030325 03/07/2014 01:47:03 PM Page 10 of 41 Quorum 6.04. The presence, either in person or by Prony any meeting, of 15 (fifteen) unique Members entitled to cast a vote constitutes a quo r any action, except as otherwise provided in the Articles of Incorporation, the D and these Bylaws (the “Governing Instruments”). In the absence of a quorum a ting of Members, a majority of those Members present in person or by proxy may the meeting to a time not less than five (5) days or more than thirty (30) days from Re ng date.

Required Vote 6.05. The vote of the we. of the votes entitled to be cast by the Members present, or represented by proxy, at a m at which a quorum is present shall be the act of the meeting of Members, unless the vo a greater number is required by statute or by the Governing Instruments. cs . @ ARTICLE 7 Assessments 7.01 Each Lot is subject to an annual assessment on the basis of the time and terms set forth in the Declaration.

Special Assessments

tute or by the Governing Instruments. cs . @ ARTICLE 7 Assessments 7.01 Each Lot is subject to an annual assessment on the basis of the time and terms set forth in the Declaration.

Special Assessments 7.02 Special assessments may be approved on the basis of the terms set forth in the Declaration.

Uniform Assessments 7.03 Applying uniform rates of assessments, for koth annual and special assessments, as well as separate assessments are more fully described i eclaration.

Bylaws Q; 2014030325 03/07/2014 01:47:03 PM Page 11 of 41 ARTICLE 8 Meetings of Members Annual Meetings e 8.01. The first meeting of the Membe e Association was held July 13, 2013, and annually thereafter on January 2 of each y Amin ten (10) days thereafter. If the day for the the first day following that is not a ceageNey Special Meetings vy 8.02. Special meeti SS the Members may be called by the President, the Board of Directors, or by Membe senting 15 (fifteen) unique Members entitled to cast a vote which constitutes a quorum, ssociation.

Place . @ 8.0 Sings of the Members shall be held, either (1) a meeting place as the Board may ag writing, or (2) by using a conference telephone or similar communications equipmeM, or another suitable electronic communications system, including videoconferencing technology, the Internet, or any combination if the equipment permits each person participating in the meeting to communicate with all other persons participating in the meeting.

Notice of Meetings 8.04. Written notice of all Members’ meetings shal! be given by or at the direction of the Secretary of the Association or such other persons as may be authorized to call the meeting, by

e of Meetings 8.04. Written notice of all Members’ meetings shal! be given by or at the direction of the Secretary of the Association or such other persons as may be authorized to call the meeting, by mailing, electronically emailing, or posting on the Hills of Bandera Ranch Subdivision Mailbox (located at the front gate) a copy of such notice at least one (1) but not more than five (5) days before the meeting to each Member entitled to vote at the meeting. The notice must be addressed to the Member's address or email address last appearing on the books of the Association or supplied by such Member to the Association for the p e of notice. The notice shall specify the place, day, and hour of the meeting and, in €§ of a special meeting, the nature of the business to be undertaken.

& Order of Business ; ° 8.05. The order of business at rine of the Members shall be as follows: (a) Roll call.

(b) Proof of a> of meetings or waiver of notice.

(c) Readi Minutes of preceding meeting.

(d) Re officers.

(e) s of committees.

(f) tion of directors.

(Qa nfinished business.

+ New business.

Bylaws We 2014030325 03/07/2014 01:47:03 PM Page 12 of 41 ARTICLE 9 Board of Directo Number RX 9.01. The affairs of this Association ow anaged by a Board of Directors consisting 5) of not less than three (3) and not more thary, persons, all of whom must be Members of the Association. 6G S Term & 9.02. At the first meeting oMhe Association, the Members shall elect the initial Directors who shall hold office until we annual election of Directors by the Members. After the first meeting of the Associa ctors shall be elected at the annual meeting of the Members and shall hold office for Qy f one (1) year in the first year of the Association, thereafter two years

fter the first meeting of the Associa ctors shall be elected at the annual meeting of the Members and shall hold office for Qy f one (1) year in the first year of the Association, thereafter two years on staggered rotation until their successors are elected and qualified at the next Annual Meeting. RS Remova g@ ._ Directors may be removed from office without cause by a majority vote of the Members of the Association.

Vacancies 9.04. In the event of a vacancy on the Board caused by the death, resignation, or removal of a Director, the remaining Directors shall, by majority vote, elect a successor who shall serve for the unexpired term of the predecessor.

Any directorship to be filled by reason of an increase in the number of directors shall be filled by election at an annua! meeting of Members or at a special meeting of Members called for that purpose.

3s Compensation gS 9.05. A Director may be reimbursed e Board for actual expenses incurred by the Director in the performance of the Directgr’ es.

Powers and Duties > 9.06. The Board shall Loe powers and duties, and shall be subject to limitations on such powers and duties, as enpdgrated in the Governing Instruments.

» Se o> s va > 2014030325 03/07/2014 01:47:03 PM Page 13 of 41 ARTICLE 10 Nomination and Election of Directors Nomination \ 10.01. Nomination for election to the po Bic shall be made from the floor at the annual meeting of the Members. The Merfge shall vote at the annual meeting as to the number of directorships. oe ¢ Election & 10.02. Directors are e at the annual meeting of Members of the Association.

Members, or their proxies, ma in respect to each vacant directorship, as many votes as they are entitled to exercise nde rovisions of the Declaration.

os” ARTICLE 11 > Meetings of Directors Regular M ‘

embers, or their proxies, ma in respect to each vacant directorship, as many votes as they are entitled to exercise nde rovisions of the Declaration.

os” ARTICLE 11 > Meetings of Directors Regular M ‘ . Regular meetings of the Board of Directors shall be held monthly either (1) at a place asWhe Board may specify in writing or (2) by using a conference telephone or similar communications equipment, or another suitable electronic communications system, including video conferencing technology, the internet, or any combination if the equipment permits each person participating in the meeting to communicate with all other persons participating in the meeting. Notice of all meetings of the Board of Directors, stating the time and place of such meeting, shall be given at least five (5) calendar days prior to the date of the meeting by any officer of the Association by mailing the same to each director at his address as the same shall appear on the records of the Association. No notice need be given to any director from whom a written waiver of notice has been received.

Special Meetings 11.02. Special meetings of the Board of Di shall be held when called by written notice signed by the President of the Associati any two (2) Directors other than the President. The notice shall specify the time Ke of the meeting and the nature of any special business to be considered. Notice of a jal meeting must be given to each Director not less than three (3) days or more than tey days prior to the date fixed for such meeting by written notice either delivered person Swe¥it by mail, or sent by email to each Director at the Director's address as shown in the re of the Association.

€ transaction of business by the Board of Directors shall be the

her delivered person Swe¥it by mail, or sent by email to each Director at the Director's address as shown in the re of the Association.

€ transaction of business by the Board of Directors shall be the the number of Directors (three Directors) constituting the Board of Bylaws & SS Bylaws aS 2014030325 03/07/2014 01:47:03 PM Page 14 of 41 Voting Requirement 11.04. The act of the majority of Directors presggt at a meeting at which a quorum is present shall be the act of the Board of Directors Y s any provision of the Governing Instruments requires the vote of a greater numbe Director shall be entitled to one vote; however, the President shall be entitled to one ad vote in the event of a tie-vote.

° Open Meetings O 11.05. Regular and special ~. of the Board shall be open to all Members of the Association, provided, however, ssociation Members who are not on the Board may not majority of a quorum of the 11.06. Room may, with the approval of a majority of a quorum, adjourn a meeting and reconve ecutive session to discuss and vote on personnel matters, litigation in which the Assogi is or may become involved, contract negotiations, enforcement actions, other busine confidential nature involving a Member, and matters requested by the involved parties to’remain confidential. The nature of any and all business to be considered in executive session shall first be announced in open session.

participate in any deliberation Ss ussion unless expressly authorized to do so by the vote of a Executive Session ARTICLE 12 Officers Enumeration of Officers 12.01. The Officers of this Association shall be a President, a Secretary, a Treasurer and a Vice-President, who shall at all times be members of the Board of Directors. The Board of

ation of Officers 12.01. The Officers of this Association shall be a President, a Secretary, a Treasurer and a Vice-President, who shall at all times be members of the Board of Directors. The Board of Directors may, by resolution, create such other offices, as it deems necessary or desirable and Term os 12.02. The Officers of this Associ shall be elected annually by the Board of Directors, and each shall hold office for 9 year, unless the Officer shall sooner resign, be removed, or be otherwise disqualified t 2014030325 03/07/2014 01:47:03 PM Page 15 of 41 Resignation and Removal President, or the Secretary. Such resignation shall t at the date of receipt of the notice or at any later time specified in the notice. An may be removed from office by the Board whenever, in the Board's judgment, he terests of the Association would be served by such removal. cS ° 12.03. Any Officer may resign at any time by ot ng written notice to the Board, the CLE 13 President Electi 13.01. At the fi Sy of the Board immediately following the annual meeting of the Members, the Board ect one of their number to act as President.

Duties . @ we e President shall perform the following duties: (a) Preside over all meetings of the Members and of the Board.

(b) Sign as President all deeds, contracts, and other instruments in writing that have been first approved by the Board, unless the Board, by duly adopted resolution, has authorized the signature of another Officer.

(c) Call meetings of the Board whenever he or she deems it necessary in accordance with rules and on notice agreed to by the Board. The notice period shall, with the exception of emergencies, in no event be less than three (3) days.

henever he or she deems it necessary in accordance with rules and on notice agreed to by the Board. The notice period shall, with the exception of emergencies, in no event be less than three (3) days.

(d) Have, subject to the advice of the Board, general supervision, direction, and control of the affairs of the Association and discharge such other duties as may be required of him or her by the Board.

(e) Prepare, execute, certify, and have recorded all amendments to the Declaration required by statute “or by the Association.

ge Election Be 14.01. At the first meetin Board immediately following the annual meeting of the Members, the Board shall elect o its Members to act as Vice-President.

Duties Ss 14.02. The QePPresident shall perform the following duties: & se Bylaws Q; 2014030325 03/07/2014 01:47:03 PM Page 16 of 41 (a) Act in the place and in the stead of the President in the event of the President's absence, inability, or refusal to act.

(b) Exercise and discharge such oo as may be required of the VicePresident by the Board. In co with any such additional duties, the Vice-President shall be res to the President.

> AOycLe 15 & ecretary Election we 15.01. At the first of the Board immediately following the annual meeting of the Members, the Board s a Secretary.

uties cs D % 15.0 Secretary shall perform the following duties: A (a) Keep a record of all meetings and proceedings of the Board and of the Members.

(b) Keep the seal of the Association, if any, and affix it on all papers requiring the seal.

(c) Serve notices of meetings of the Board and the Members required either by law or by these Bylaws.

(d) Keep appropriate current records showing the Members of the Association together with their addresses.

e notices of meetings of the Board and the Members required either by law or by these Bylaws.

(d) Keep appropriate current records showing the Members of the Association together with their addresses.

(e) Sign as Secretary all deeds, contracts, and other instruments in writing that have been first approved by the Board if the instruments require a second Association signature, unless the Board has authorized another Officer to sign in the place and stead of the Secretary by duly adopted resolution.

(f) Prepare, execute, certify, and haye recorded all amendments to the Declaration required by statute t orded by the Association.

9S ARTI 6 io Election wy 16.01. At the first meetin Board immediately following the annual meeting of the Members, the Board shall elect a urer.

wv Duties Ss 16.02. The Tee: shall perform the following duties: & Ss Bylaws Q; 10 2014030325 03/07/2014 01:47:03 PM Page 17 of 41 (a) Receive and deposit in a bank or banks, as the Board may from time to time direct, all of the funds of the Association.

(b) Be responsible for and supervise th maintenance of books and records to account for the Association’s d other Association assets.

(c) Disburse and withdraw fun Board may from time to time direct, in accordance with presc rocedures.

(d) Prepare and distribute Ne ancial statements for the Association required by the ane NS) OF RTICLE 18 xh Other Committees Designation Ss 18.01. The B of Directors may, by resolution adopted by a majority of the whole Board, designate 1) or more committees in addition to the executive committee.

Number; ication; Term ws The committees shall consist of two (2) or more persons, a majority of whom are Q directors. The committees shall serve at the pleasure of the Board of Directors.

Authority

e.

Number; ication; Term ws The committees shall consist of two (2) or more persons, a majority of whom are Q directors. The committees shall serve at the pleasure of the Board of Directors.

Authority 18.03. The committees, to the extent provided in such resolution, shall have and may exercise all of the authority of the Board of Directors in the management of the business and affairs of the Corporation.

Change in Number 18.04 The number of committee members may be{ncreased or decreased from time to time by resolution adopted by a majority of the whole eS of Directors.

Removal!

18.05 Any member of the commit} ai be removed by the Board of Directors by the affirmative vote of a majority of the w d, whenever in its judgment the best interests of the Corporation will be served mea se?

Bylaws Q; W 2014030325 03/07/2014 01:47:03 PM Page 18 of 41 Vacancies 18.06 A vacancy occurring on any committee (by qeath, resignation, removal or otherwise) may be filled by the Board of Directors in Se er provided for original designation by Section 18.01 of these Bylaws. C5 Meetings . > 18.07 Time, place and notice its@aVor any committee meetings shall be determined by each committee.

\ Quorum; Majority Vote ss 18.08 At meetings aby committee, a majority of the number of members designated by the Board of Dir Ry fall constitute a quorum for the transaction of business. The act of a majority of the Merbud present at any meeting at which a quorum is present shall be the act of the committee, e as otherwise specifically provided by statute, the Articles of Incorporation or these Byla a quorum is not present at a meeting of the committee, the Members present may adjo meeting from time-to-time, without notice other than an announcement at the meetin: a quorum is present. W Procedure

a quorum is not present at a meeting of the committee, the Members present may adjo meeting from time-to-time, without notice other than an announcement at the meetin: a quorum is present. W Procedure 18.09. Each committee shall keep regular minutes of its proceedings and report the dame to the Board of Directors when required. The minutes of the proceedings of each committee shall be place in the minute book of the Corporation.

Action Without a Meeting 18.10. Any action required or permitted to be taken at a meeting of a committee may be taken without a meeting if a consent in writing, setting forth the action so taken, is signed by all the members of the committee. Such consent shall hav same force and effect as a unanimous vote at a meeting. The Signed ronson ed copy, shal! be placed in the minute book.

> ¢ Telephone and Similar Meetings - ° 18.11. Committee members SN rticipate in and hold a meeting by means of conference telephone or similar cations equipment by means of which all persons participating in the meeting can h¥gpeach other. Participation in such meeting shall constitute presence in person at the m except where a person participates in the meeting for the express purpose of objecti ¢ transaction of any business on the ground that the meeting is not lawfully called or £8 ed.

G se?

2014030325 03/07/2014 01:47:03 PM Page 19 of 41 Responsibility operate to relieve the Board of Directors, or any mem of, of any responsibility imposed upon it or mandated by law. 5 Oe 19 records of account and minutes of proceedings of meetings ittees shall be kept at the registered office of the Association.

and addresses of all Members entitled to vote shall be kept at the place of business of the Association.

es of proceedings of meetings ittees shall be kept at the registered office of the Association.

and addresses of all Members entitled to vote shall be kept at the place of business of the Association.

18.12. The designation of a committee and the Net of authority to it shal] not Maintenance 19.01. Complete and of Members, Directors, and A record containing the registered office or px ] ie Governing Instruments, the membership register, the books of account, and the mi f proceedings shall be available for inspection and copying by any Member of the W Associatwen or any Director for any proper purpose at any reasonable time.

ARTICLE 20 Indemnification Extent of Indemnification 20.01. The Association shall indemnify and may advance reasonable expenses to any person who is serving or has served as a director, officer or committee member of the Association to the greatest extent then permitted by the Texas Non-Profit Corporation Act and other applicable law. Indemnification as provided in this Article 20 shall inure to the benefit of the heirs, executors, and administrators of any person whqheld a position named in this Section.

Other Remedies os 20.02. Indemnification provided in thi icle shall not be exclusive of any other rights to which a person who held a position idept) n Section 20.01 may be entitled by law, agreement, vote of disinterested directag§ therwise.

Insurance vy 20.03. The Associati y purchase and maintain insurance on behalf of any person (and may reimburse any n for the reasonable and necessary cost of obtaining and maintaining personal i ce) against any liability which may be incurred by him arising out of his status as a di “officer, committee member or employee of the Association, whether or

t of obtaining and maintaining personal i ce) against any liability which may be incurred by him arising out of his status as a di “officer, committee member or employee of the Association, whether or not the Associationnyould have the power to indemnify him against any such liability in Section 20.01. + aS 3 Bylaws 2014030325 03/07/2014 01:47:03 PM Page 20 of 41 ARTICLE 21 Amendment of Bylaws 21.01. These Bylaws may be amended, al Rereaied at a regular or special meeting of the Members of the Association by tive vote in person or by proxy of Members representing a majority of a quorum Association. Notwithstanding the above, the percentage of affirmative votes necesgaycyemend a specific clause or provision shall not be less than the prescribed percentage of ay ve votes required for action to be taken under that clause. & Attestation YS 21.02. Adopted by eee of Directors on October 12, 2013.

Secre : UG, A Printed Name State of Texas County of he fas Before me, Sere h Wi Helacomy on this day personally appeared Deurseun i4 Faere-Uf, known to me (or proved to me on the oath of or through eg Ayers hes : to be the person whose name is subscribed to the foregoing instrument and acknowledged {o me that he executed the same for the purposes and consideration therein expressed. RX Given under my hand and seal of office this Nat dayof_ Fel AOL BO re 0et A raw ry ae wv) Bylaws we STATE OF TEXAS OF DECLARATION OF COVENANTS, CONDITIONS AND “—" HILLS OF BANDERA RANCH S COUNTY OF BANDERA AND COUNTY OF MEDINA $ e Cielo Trace, LP, hereinafter called “Declarant” is the Owner of certain KN located in Bandera County, Texas, said property being fully described in Exhibit "A" hereto attached for ses of this instrument the same as if & were written herein.

larant” is the Owner of certain KN located in Bandera County, Texas, said property being fully described in Exhibit "A" hereto attached for ses of this instrument the same as if & were written herein.

Subject property #s now or will be divided into smaller pa referred to as the “Project,” or as Hills of Bandera Ranch.

For the purpose of enhancing and protecting the value Qtility, attractiveness and desirability of the tracts constituting such project, Declarant hereby declares that ail a | property described above and each part thereof shall be held, sold, and conveyed only subject to the fo! sements, authority, covenants, conditions, and the total of which will be hereinafter be restrictions, which shall constitute covenants running wi id and shall be binding on all parties having any right, titie, or interest in the above described property or any, Teof, their hairs, successors, and assigns and shall inure to the benef of each Owner thereof. C3 o ICLE |. DEFINITIONS “Association” shall mean ani 0 the Hills of Bandera Ranch Property Owners Association, its successors and assigns, oF corporate ent f name as created by Developer.

"Declarant" shall me fo Trace LP, and its successors and assigns, provided such an assign acquires the project in total, or the ramain@er in total for purposes of development and sale. Declarant may be referred ta as Developer. : oe ‘ “Maintenance” shall mean the exercise of reasonable care to keep buildings, roads, landscaping, lighting, drainage, irrigation systems, commons and other related improvements and fixtures in a condition comparable to thair original condition, normal wear and tear excepted.

s, roads, landscaping, lighting, drainage, irrigation systems, commons and other related improvements and fixtures in a condition comparable to thair original condition, normal wear and tear excepted.

“Member” shall mean every person or entity who holds membership in the Association, each purchaser of property in the project becomes a member of the association upon such purchase. .

"Mortgagee” shall mean a holder of a bonafide mortgage or a beneficiary under or holder of a Oeed of Trust.

“Mortgage” shall mean a bonafide mortgage, a Deed of Trust, or a Vendor's Lien.

“Authority” shall mean that authority as created herein and vested in the Declarant.

“Board” shall mean the Board of Directors of the Association.

“Drives” shalt mean any common reserved for use by all Owners for vehicular traffic. ss “Commons” shall mean any property reserved for o7 dedicated to the common use o ers.

simple title to any tract which is a part of the project, and shall include purchasers undgr for deed, but shall! not “Owner” shall mean the record Owner, including Deciarant, whether one or mo Ss of eantitias, of fee include those holding title merely as security for performance of an obligation. XN ° “Project” shall mean the real property herein described in Exhibit “A,” additions thereto as may be “brought within the jurisdiction of the Association as hereinafter provided.

© ARTICLE Il. EASEMENTS, DRIVES, ~ O PRIVATE ROADS Section 1. Private roads, drives or access ease utilities, irrigation and drainage, are established by sepa j in the office of the County Clerk and as hereinafter set easements far installation and maintenance of ment or instuments of record or to be placed of record ithin such easements and roads, no structure, planting, or

the County Clerk and as hereinafter set easements far installation and maintenance of ment or instuments of record or to be placed of record ithin such easements and roads, no structure, planting, or other material shall be placed or permitted t ich may damage or interfere with the installation and maintenance of service or utilities, or which md& d: e, interfere with, or change the direction or flow of drainage facilities in the easements or which may interfere Wj passage along such private road easements and creek channels.

The easement area of each tract and all ineepgmats therein shat! be continuously maintained by the Owner of such ae Tat!? S28 2007 Ww eo Ee Bit Cc SN 2014030325 03/07/2014 01:47:03PM Page tract, except for improvements for maintenance of which a public, private, or quasi-public authority or utility company is responsible.

Section 2, Easements: Perpetual easements are reserved over and across the tract for elect T, water, sewerage, gas, telephone, television cable, and similar utility facilities aiong with the easements, sh recorded plat and all said easements, are adopted as part of these restrictions. There is also reserved a hereby for the use of the developer and any public or private utilfty company an unobstructed aerial eas’ @ (5) feet wide The easements reserved and dedicated under the terms and provisions hereof shal! ee general benefit of the subdivision and shail also insure to the benefit of and may be used by any public or priv company entering into and upon said property for re purposes aforesaid, without the necessity of and fugih t of such easement rights to such utility companies. No utility company, political subdivisions, or other auth using the easements herein

for re purposes aforesaid, without the necessity of and fugih t of such easement rights to such utility companies. No utility company, political subdivisions, or other auth using the easements herein referred to shall be liable for any damage done by them or their assigns, agen foyees, or servants, to shrubbery, trees, or flowers, or to other proparty of the owner situated within any such No dwelling unit or other structure of any kind shall be built, er reservation or right of way, and such easements reservations, and x» nd from any plane twenty (20) feet above ground upward, located adjacent to and above “ye utility easements.

maintained on any such easement, 'y shall at ail times be open and accessible ons, their employees and contractors, and igns, all of whom shall have the right and such locations to carry out any of the purposes for to representatives of the Authority, to public and quasi-public utility cOqgo" shall also be open and accessible to Declarant, its successors: privilege of daing whatevar may be necessary in, or under, ora which such easements, reservations, and rights of way ww Section 3. The private drive or roadway ease.

and benefit of the Owners of the tracts within the grog forth, and are not dedicated to the general puQic.

approved by the Architectural Control Committee’ 's set forth by separate instruments are for the private use erein prescribed, and under the conditions as therein set eways must be improved; all such improvements must be Section 4. It is understood apd. that the easements granted herein and to be granted hereafter are reserved as permanent easements S rpose set forth and are not subject to the time limi applicable to other restrictions.

derstood apd. that the easements granted herein and to be granted hereafter are reserved as permanent easements S rpose set forth and are not subject to the time limi applicable to other restrictions.

Section 5. There is served and established a utility easement adjacent and parallel to all roadway easements. Said utiny eas twenty (20) teet wide upon the ground and twenty (20) feet wide above the ground and extends from the outside%goundary of the roadway easement into and upon the adjoining property on each side thereof. There is further reserved an easement into ail property adjacent thereto for the purpose of installation of guy wires where necessary for securing utility polas.

Section 6. There is hereby reserved and established an easement for purposes of drainage and/or service of utilities upon and in addition to the purposes of any existing easement of record and being still valid, such eesement now made subject to ail the stipulations as herein otherwise set forth pertaining to utility and/or drainage easements.

Section 7. There is hereby reserved to Declarant, its successors and assigns an easement for ingress and egress over all streets, foadweys and utility easements fronting on street rights-of-way es shown on the subdivision plat which may be used for equine and pedestrian traffic. Declarant contemplates that the roads and streets in the Property will be conveyed to the Association and operated as private streets by the Association, with each Owner having an easement for the use and benefit of such Owner of a Lot fronting thereon o7 adjacent thereto, which easements shall include rights of ingress, egress, and passage over and along said streets in favor of the Declarant, the Association, the

ch Owner of a Lot fronting thereon o7 adjacent thereto, which easements shall include rights of ingress, egress, and passage over and along said streets in favor of the Declarant, the Association, the Owners and there respective legal representatives, successors and assigns, guests, invitees, licenses, designees, and the successors-in-titie to each Owner and in favor of the invitees and designees of each successor-in-title to each Owner, but not in favor of the public. ft is specificafly stipulated that motorcycles may be used for ingress and egress only. All-terrain vehicles (ATVs) may not be used on streets, easements, or commons.

ARTICLE lll. ARCHITECTURAL CONTROL ss Section 1. No building shall be erected, ptaced, or altered on any tract until the ag oS plans and specifications and @ plat showing the location of the structure, and the complete plan of thé System showing Ttelation to tract lines and water lines have been approved by the Architectural Controlqo fee es to quality of workmanship and materials, harmony of externa! design with existing structures, and as location with respect to topography and finish grade elevation. Approval shall be as provided herein.

Cy any building or fire codes, or Section 2. The Architectural Control Committee ts hereby authorize i roject. Said requirements having any rules, restrictions or requirements concerming the construction of buildin: been made by an Authority, focal, county, state, or otherwise, having the fe: rity to make such requirements. itis further stipulated herein that the Architectural Control Committee is emp to require fire walls to be constructed as wail sections in contiguous housing, should such type housing in th e allowed. Such requirement would be

rein that the Architectural Control Committee is emp to require fire walls to be constructed as wail sections in contiguous housing, should such type housing in th e allowed. Such requirement would be made based on the requiramants of municipalities of the area or sige 1 standard code ordinarily pertaining to the construction industry.

ARTICLE IV. omer COMMITTEE 2 of 41 2014030325 03/07/2014 01:47:03PM Page Section 1. ARCHITECTURAL CONTROL COMMITTEE. Until such time that the property owners’ association is created, Developer will act as the Architectural Control Committee. The Committee shall deleaate this au arity to the Association, when formed, who will then appoint a committee of three (3) members to protect the rs of lots hereunder against improper use of lots, to preserve, so far as practicable, the natural beauty of said to guard against the erection thereon of poorty designed or proportioned structures and structures built ofi f unsuitable materials; to obtain an harmonious architectural scheme; to insure the highest and best devel Property; to encourage and secure the erection of attractive homes thereon, with appropriate locations the lots; to sacure anc maintain property setbacks from streets and adequate free spaces between structures: d, i general, to provide adequately for a high quality of improvements on said property, and thereby to enhage lue of the investments made by purchasers of lots therein. ff, for any reason, a member or members of sai unwtifing to function, then a replacement member or members shail be selecte bams, out-buildings and structures shall be approved by a majority of the Ay Control Committee. Neither Association or the Architectural Control Committee, nor the members of sai ittee, shall have any liability nor

dings and structures shall be approved by a majority of the Ay Control Committee. Neither Association or the Architectural Control Committee, nor the members of sai ittee, shall have any liability nor responsibility at law nor in equity on account of the anforcemant of, nor unt of the failure to enforce, these restrictions.

ittee becomes unable or ociation. Alf house plans, Section 2. VARIANCES. The Architectural Contro! Commi S vote or wiitten consent of a majority of the members thereof, may altow reasonable variances as to any of ovEnants, conditions or restrictions contained in this Declaration under the jurisdiction of such committee pursua Bye 4 on such terms and conditions as it shail require; provided, however, that all such variances shall ing with the generat plan for the development, improvement and sale of the Property and shall not impai ‘act from the high quality development of the Property.

Itts further provided, however, that Declarant hereby , until the Control Transfer Date, the right of approvai or disapproval of all variances which may affect build ck fines, Lot area and structure locations. All variances must be evidenced by a written instrument in recorda nd must be signed by at least two (2) of the Voting Members.

The granting of such variance shall not operate @ OF amend any of the terms and provisions of these covenants and restrictions applicable to the Lots for an ose except as to the particular property and in the particular instance covered by the variance, and such yaq all not be considered to establish a precedent or future waiver, modification or amendment ot the t rovisions hereof.

Section 3. REMODEL VATION AND REDECORATING OF EXTERIOR WALLS. No remodeling, renovation o; radacoration

to establish a precedent or future waiver, modification or amendment ot the t rovisions hereof.

Section 3. REMODEL VATION AND REDECORATING OF EXTERIOR WALLS. No remodeling, renovation o; radacoration fanior walt of any building on a Lot which in any mannes changes the visual appearance of such exteri Including, but not limited to, changing the color, appearance, texture or reflective character of any exterior surfa&e, or the addition or alteration of shutters, awnings or others window coverings or the addition of wall applications) shall be allowed until the plans and specifications describing the work to be performed have been approved in writing by the Architactural Control Committee as provided herein. Such remodeling, renovation or redecorating shail, for the purposes hereof, be deemed to constitute an alteration of a building or improvement.

Section 4. CERTIFICATE OF COMPLIANCE. Upon completion of any improvernent approved by the Architectural Control Committee and upon written request by the Owner of the Lot, the Architectural Contro! Committee shall issue a certificate of compliance in a form suitable for recordation. The certificate shal! identify the Lot and the improvements, and the plans and specifications on file with the Architectural Control Committee pursuant to which the improvemants were made and shall specify that the improvements comply with the approved plans and specifications. The certificate shall not be construed to certify the acceptability, sufficiency or approval by the Architectural Contro! Committee of the actual construction of the improvements or the workmanship or material thereof.

Each Ownar is hereby notified that the certificate in no way warrants, except as set forth above, the sufficiency,

f the actual construction of the improvements or the workmanship or material thereof.

Each Ownar is hereby notified that the certificate in no way warrants, except as set forth above, the sufficiency, acceptability or approval by the Architectural Control Committee of the construction workmanship, material and/or equipment of the improvements. Preparation and recordation of a certificate shall be at the expense of the Owner of the Lot, and the Assaciation is authorized to charge a reasonable amount for issuance of a certificate.

Section 5. PROCEDURE. The committee's approval or disapproval as required in these covenants shall be in writing. In the event the committe, or its designated representative fail to approve or disapprove within thirty days (30) after plans and specifications have been submitted to it, or in any event, if no suit to enjoin the construqti@ has been commenced prior to completion thereof, approval will not be required and the related covenants ow emed to have bean fully complied with. 9 ARTICLE V. USE RESTRICTIONS C3 Section 1. TYPE OF BUILDING PERMITTED. One (1) detached single family dw twa and aé-half (244) stories in height, together with a private, fully enclosed garage than six (6) cars, which garage may include living quarters above or adjacent thergt family occupying the main residence on the Lot or by servants employed on th of the Owner and his immediate family. A variance for a bed and breakfast m Committee, All mobile homes and manufactured homes are absolutely forby be located on any Lot. Unoccupied recreational vehicles (including horse, camping and hunting NAS mes, tents and other portable camping sidence nat to exceed ss than two, (2) nor more ied by an integral part of the rkshops for the personal use

nal vehicles (including horse, camping and hunting NAS mes, tents and other portable camping sidence nat to exceed ss than two, (2) nor more ied by an integral part of the rkshops for the personal use nted by the Architectural Control structures) may 6e focated on a Lot ff they are fully enclosed withit ‘ure approved by the Architectural Control Committee, or screened from view.

Section 2. MAINUAUM FLOOR AREAS. Any residen ww iots must have a floor area of not less than sixteen hundred (1600) square feet, exciuding patios, drivewa rts and garages. Lot 1A is specifically excluded from these restrictions, <y Section 3. SETBACKS. No building neo: on any tract nearer than one hundred (100) festto the front tract line. No building shall be located nearer tha ty-five (25) feet to the side and rear tract lines. For the purpose of this covenant, eaves, steps and open porcnef el not be considered as a part of the building: provided however, that ° “ue ase creates on S15 295° s of 41 this shall not be construed to permit any portion of the building on any tract to encroach upon another tract. tf two or more tracts, of fractions thereof are consolidated into a building site in conformity with the provisions of Artige V, Section 4, these building setback provisions shall be applied to such resultant site as if it were on original, ptatt ct.

Section 4. RESUBDIVISION OF CONSOLIDATION. None of said tracts shall be rong any fashion except upon the approval of the Architectural Control Committee. With the prior written app eArchitectural Control Committee, the Owner(s) of a group of Lots, each of which is adjacent to one or mor Lots in the group,

f a group of Lots, each of which is adjacent to one or mor Lots in the group, front, rear and side lines ofthe platted Lots affected by any such action, as such lines gr: ated on the Subdivision Plat, shall be adjusted to conform to the front, rear and side lines of the new buil S$; for building and other purposes. The side-lot utility easement, if applicable on the common propery & Oo Lots to be combined, must be released or abandoned in accordance with applicable law, and the responsible for the cost of relocating any utility fines and restoring the surface of any abandoned or relo ity easements. Improvements, 2s permitted pursuant to this Declaration, may be constructed on any such bu ite in accordance with the new front, rear and side fines thereof. Each such building site, upon being desi Such by the Owner(s) thereof and approved by the Architectural Control Committee, shal! thereafter t all purposes of this Declaration, except that all future assessments payable by the Owner of a building site nsed of more than one Lot combined will be based upon an assesemant for each of the originally platted NY combined.

Section 5. RUBBISH, TRASH, AND GARBAGE. Ni rubbish, or junk; and no garbage or other waste shalt equipment for the storage and disposal of such mateg | be used or maintained as a dumping ground for except in sanitary containers. All incinerators or other | be kept in clean and sanitary condition.

Section 6. ANIMAL HUSBANDRY. No sh 8, pot-bellied pigs, poultry, fowl, wild or dangerous animals (the determination as to what is a wild animal ora d TOUS animal to be in the sole discretion of the Association), or

MAL HUSBANDRY. No sh 8, pot-bellied pigs, poultry, fowl, wild or dangerous animals (the determination as to what is a wild animal ora d TOUS animal to be in the sole discretion of the Association), or snakes shail ever be kept on the Property when the occupant of a Lot is a bona fide participant in an animalhusbandry project sponsored by the Fyti ers af America or a simitar organization. Cows and goats may be kept only as approved by the Architectur: ommittee. Dogs, cats and ather common household pets in reesonable numbers may be kept on a Lot. Eac! all be allowed one (1) horse for each one point two five (1.25) acres of land within the Lot (e.g., 5 acres: 42; orses)}, as long as they are kept in an enclosed area, es described below in Section 7. No animal shall to make an unreasonable amount of noise, or to become a nuisance, and no domestic pets will be allo Ny portion of the Property other than on the Lot of Its owner unless confined to a leash. No commercial kennelster breeding operation will be allowed. The breeding of one personal stallion on one’s lot shall be permitted. No animal shall be allowed to run at large, and all animals shali be kept within enclosed areas, which must be clean, sanitary and reasonably free of refuse, insects and waste at all times. Such enclosed area shall be constructed in accordance with plans approved by the Architectural Controt Committee, shall be of reasonable design and construction to adequately contain such animals in accordance with the provisions hereof.

Section 7. WALLS AND FENCES. Walls and fences, if any, must be approved by the Architectural Control Committee. Any erection of any wall, fence or other improvement on any easement is forbidden. Fences and walis will be constructed as follows:

es, if any, must be approved by the Architectural Control Committee. Any erection of any wall, fence or other improvement on any easement is forbidden. Fences and walis will be constructed as follows: a. Fences an the perimeter boundaries of a Lot The Owner is not required tp install fencing on the perimeter of any Lot. If perimeter fencing is installed, afi corner pasts shall be cedar with a minimum diameter of eight (8) inches and set in concrete at a minimum dimension of thirty (0) inches deep. wire fencing shall be a "King Ranch" type wire mesh (#949-12-12 A), made by Solidlock and marketed as ‘Fixed Knot’: barbed wire may be installed at the bottom and/or the top of the fence; all wire, posts and gates shall be new when installed; maximum fence height shall be sixty (60) inches; deer-proof fencing of Solidlock may be constructed around the perimeter of the building envelope as shown on site plans that have been submitted to and approved by the Architectural Control Committee; and gateposts and columns shail be constructed out of the fotlowing materiats: ()} cedar or steet (pai lees than eight (8) inches in diameter, (ij) stone or (iit) CMU or concrete wit Steel (painted) pipe fences may be constructed with approvat of the Arc . Committee. Cattle guards may not be used at the driveway entrance b. Fences along street rights-of-way: Line posts shall be peeled cedar GS ti of four(4) inches, set a minimum of thirty-six (36) inches deep, a eighteen (18) feet; cedar stays shall be a minimum of ane (1) i spacing of six{ 6) feet; the set back shalt be a minimum off ot-way; steel T-posts will be allowed.

G Side and rear fences: Fences that are constructed along @ and rear lot lines shall have line posts of peeled cedar with a minimum diam (4) inches, set a minimum of

ay; steel T-posts will be allowed.

G Side and rear fences: Fences that are constructed along @ and rear lot lines shall have line posts of peeled cedar with a minimum diam (4) inches, set a minimum of thirty (2D) inches dasp, at a minimum spacing o! in (18) feet. Grean six (6) foot Tposts may be used for line posts and set on a en (18) foot spacing. If T-posts are used, the four (4) inch minimum diameter pa jar posts shall be set on a one hundred {100) foot maximum spacing. Stays sh 1) inch cedar at a minimum of six (6) feet.

d, Fences inside the building envelope: Ced: fences, wrought iron or similar style fences shall be permitted.

e. Chain link fences: There shail be n any Lot, except as authorized b of building materials and su court or dog run. Nothing and maintenance to cagi Facilities for the appurtenances there land owned by nimum spacing of in dlameter at a minimum et from the street rightink fencing constructed, instalied or maintained on itectural Control Committee for temporary storage ring the construction phase or for enclosing a tennis all be construed, however, as to prohibit the instaltation cing in, on or about the Common Properties and Comman nce and protection of the amenities thereon and the around the perimeter boundaries that separate the Property from f. Approval of fences: Plans and specifications of all entry gates and fences require approval of the Architectural Control Committee.

g. Maintenance: Maintenance of entry gates and fences on each Lot shall be the (5) degrees out of perpendicular alignment with its base, (i) giss! ose or damaged stone or wood rails in the fence or (iii) symbols, writings and graffiti on the fence.

° Section 8, SIGHT DISTANCE AT INTERSECTIONS. No fence, wall, hedge,

ment with its base, (i) giss! ose or damaged stone or wood rails in the fence or (iii) symbols, writings and graffiti on the fence.

° Section 8, SIGHT DISTANCE AT INTERSECTIONS. No fence, wall, hedge, Sight lines at elevations between two and six feet above the roadways shall comer tot within the triangular area forrned by the street property lines and a li the intersection of the street lines, or in the case of a rounded property corne: lines extended. The same sight line limitations shell apply on any lot with) property line with the edge of a driveway or alley pavement. No trees of such intersections unless the foliage line ts maintained at suffici planting which obstructs r permitted to remain on any Cting them at points ten feet from @ intersection of the street property feet from the intersection of the street rmitted to remain within such distances ‘o prevent obstruction of such sight lines.

truck a7 self-propelled or towable equipment or machinery o shall be permitted to park on any Lot exceptin an enclosed structure or screened from view, except that {a) construction of improvements on a Lot, necessary construction vehicles may be parked thereon for and d time of necessity therefore, and ({b) this restriction shall not apply ta automobiles in good repair and attractiv gion, provided that any such automobiles are parked on an improved driveway which has been approved ay ectural Control Committee. No business vehicles displaying Section 8. STORAGE OF VEHICLES AND core me Ns trailer, recreation vehicle, camping unit, bus, ie commercial signs or advertising shall be permittejoe parked within public view on any Lot, other than service vehicles contracted by Owners to perform specific foregoing, or on any automobile (other tha Owners shall not keep more than tw.

be permittejoe parked within public view on any Lot, other than service vehicles contracted by Owners to perform specific foregoing, or on any automobile (other tha Owners shall not keep more than tw.

period more than seventy-two (72) h ices. No repair or maintenance work shall be done on any of the emergency repairs), except in garages or other enclosed structures.

iles So as to be visible from any other portion of the Property for any id no vehicles may be parked.overnight on any street within the Property.

Section 10. VISUAL S ON LOTS. No article deemed to be unsightly by the Architectural Control Caramittee shal! be ‘ in on any Lot so as to be visible from adjoining praperty or streets. The drying of ctothes in public view is proh and the Owners or occupants of any Lot where the raar or side yard portion of the Lot is visible to the public shall corfStruct and maintain a drying yard or other suitable enclosure to screen drying clothes from public view. Similarly, all service areas, storage areas, loading areas, propane tanks and appurtenant equioment, yard equipment, woodpiles or storage piles shall be kept screened, in order to conceal them from view from neighboring Lots or streets. Installation of wind and solar devices shall be in harmony with the design of the other improvements orn the Lot and shall have received the written approval of the Architectural Control Committee before installation.

Section 11. PROHIBITED ACTIVITIES. No professional business or commercial activity to which the general public is invited shall be conducted on any tract, save except Tract 1A which shall be reserved for commercial use.

Section 12. UTILITIES. All residences constructed upon the tracts herein described shall he connected with

l be conducted on any tract, save except Tract 1A which shall be reserved for commercial use.

Section 12. UTILITIES. All residences constructed upon the tracts herein described shall he connected with Proper water and electrical at the expense of the Owner of said tract and ail residences shall have a suitable, workable septic tank system as specified by the project engineers, at the expense of the Owner.

Section 13. LIGHTING, No exterior lighting may be constructed or instatled on any Lot without the prior written approval of the Architectural Control Committee. The purpose of any restrictions or design guidelines on all exterior lighting on the Property shail be to (a) minimize light pollution of the night sky, (b} minimize the visibility of light sources fron any part of the Property, and {c) enhance the aesthetic nighttime appearance of each Lat, Living Unit, and the Property in general by promoting a consistent and harmonious scheme for exterior lighting Unless otherwise approved by the Architectural Control Committee, all exterior fixtures which may be visible fr ny other Part of the Property shall be of a type and style with housings or cut-off lenses which can shield or dot focus the light source. No exposed bulb or wrap-around lens “yard lights” will be permitted, Post intersection of @ drivaway and the street may be required by the Architectural Control Comm Lot.

installed on a , and other duitdings on his tract, its initial construction, excepting WN ARTICLE VI. OWNER'’S OBLIGATION TO ee keeping the eame condition comparable to the condition of such building at th only normal wear and tear.

ARTICLE Vil. MEMBERSHIP IN assoc) -_ RIGHTS Every owner of a tract shail be a member of the aoe embership shall be appurtenant to and may not be

ition of such building at th only normal wear and tear.

ARTICLE Vil. MEMBERSHIP IN assoc) -_ RIGHTS Every owner of a tract shail be a member of the aoe embership shall be appurtenant to and may not be separated from ownersivp of a tract.

For purposes of voting, Developer/Declarant will ued as an Owner and member with the same voting cto ° Each owner shall, at his sole cost and expense, repair anc maintain his Sr privileges of one (1) vote per tract owned.

All Owners shall be entitled to one vote tor gy wned. When more than one person holds an interest in among themseives. tn no event shall more thag o ) vote be cast with respect to any tract owned by such members.

We Declarant may, and at its sole discretion, after seventy-five (75) percent of the lots have been sold, appoint a three (3) member Board of Directors for the Association, who shall serve for one year, and on the same date of sach following year, the members of the Association shall elect a Soard of Directors for that year as set forth herein. Se of Directors shall have the full powers and duties as may be reasonably necessary to carry out the pu duties of the Association as provided herein. The above stated term and election date may vary fifteen (15) fore or after said date at the option of Board.

ARTICLE Vill, ASSESSMENTS ~ Section |. Declarant hereby covenants for each tract within the project and e 1 of a tract is hereby deemed to covenant by acceptance of his contract or deed for such tract, whether f snail be so expressed in his contract or deed, to pay to the Association, (1) annual assessment; and (2 Sbesenerients for capita!

venant by acceptance of his contract or deed for such tract, whether f snail be so expressed in his contract or deed, to pay to the Association, (1) annual assessment; and (2 Sbesenerients for capita!

improvement. Such assessments will be established and collected by the ereinafier provided. The annual and special assessments, together with interest, costs, and reason mey's fees, shall be a charge on the land and a continuing Hen on each tract against which such an asse: is made. Each such assessment, together with interest, costs, and reasonable attorney's fees shall ai personal obligation of the person or persons who owned the tract at the time the assessment fell due, personal obligation shall pass to the successors in title of such person or persons wheather or not express! umed by them.

Section 2. The annual assessments levied by S of the Association shall be used exclusively to promote the health, safety, welfare, and recreation of the ;@&i of the project, improvement and maintenance of the drainage systems, of communhy tacilties and private ri easements within the project year, a special assessment applicable to that y for the purpose of defraying in whole or in part, the cost of any construction, reconstruction, repair, or repla' of a capital improvement to the projact or any designated private roadway, or county roadway, within or givi S- to project. Any such assessment must be approved by a majority of ay S Section 3. In addition to the annual oP authorized above, the Association my levy in any assessment ye eri votes cast by members, in a manner of herein prescribed.

Section 4. The Associati tract at least thirty (30) days i Assessments may be mad ard of Directors shall fix the amount of the annual assessment against each

members, in a manner of herein prescribed.

Section 4. The Associati tract at least thirty (30) days i Assessments may be mad ard of Directors shall fix the amount of the annual assessment against each of the due date thereof and shall fix the dates such amounts become due.

Monthly. Notice of the annual assessments shall be sent to every Owner subject demand, and for @ reesonabie charge, furnish a certificate signed by an officer of the Association, setting forth wheth®r the assessment against a specific tract has been paid, and shall on or before February 15th of each year, cause to be recorded in the office of the County Cierk of the County, a list of delinquent assessments as of that date setting forth and establishing the amount of the lien therefor.

Section 5. Any essessment not paid within thirty (30) days after the due date shall be deemed in default and shalt bear interest from the due date at the highest legal rate per annum. The Association, acting through its Board of Directors, may bring an action at (aw against the Owner personally obligated to pay the same, and/or may foreciose the lien against the property. No Owner may waive or otherwise escape liability for the assessments provided for herein by non-use of the common areas, community facilities, roadway easements, or abandonment of his tract, Section 6. The assessment lien provided for herein shall be subordinate to the lien of any first mortgage. A sale or transfer of any tract shail not affect the assessment lien. However, the sale or transfer of any tract pursuantto a mortgage foreclosure or any proceeding approved by the Board in lieu thereof, shall extinguish the assessment lien as

ffect the assessment lien. However, the sale or transfer of any tract pursuantto a mortgage foreclosure or any proceeding approved by the Board in lieu thereof, shall extinguish the assessment lien as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such tract from liability for any essessments thereafter becoming due or from the lien thereof.

Section 7. Any expenses of suit brought by the Association and/or Declarant herein and any expenses of defense of any suit brought against the Association, its officers, or directors, and/or Deciarant in regard to the functions thereof in the administration or enforcement of these covenants shall be borne by the Association and th sociation shall have and hold any rights to recovery of such fees. Ss Section 8. Each Owner in the project agrees that should suit be brought by Declarant enforce performance of the covenants the suing party will be and is entitlad to Judgment for and all costs of Suit, including but not limited to expert witnesses, attorneys, appraisers, surveyors, and caurt , should the action Prevail, The amount of any such judgment obtained for damages or cost shall beco jen against defendant's property in this project and subject to the same stipulations and conditions of a lien fer ments.

@ and/or future development.

‘oReclose on any property soc under igation of any accrued and unpaid ciation to Section 9. It is specifically stipulated that Developer and its suc assessments of any nature, form, or amount on all land or inventory held he tt is further stipulated that should Developer, its successors or assi deed or contract such property will revert to status of inventory, free of

ture, form, or amount on all land or inventory held he tt is further stipulated that should Developer, its successors or assi deed or contract such property will revert to status of inventory, free of assessments or costs and/or jiens therefor. Any such liens of recor Teleased by the appropriate officer or officers upon presentation of release thereto by Developer. Upo such action by said authority, or in lieu thereof, Developer may file a relaase executed on and by its own be ich will be conclusive evidence to all persons that such lian is tharaby ralaased uniass the Association cack Ss authonity files a proper court action to invalidate said release within thirty (30) days after recordation. Furthe e@ Section 13 of Article IX herein.

¢ ag Sat gw Created on 3°452597 Ss , ARTICLE IX. NOTICE OF AUTHORITY FOR ASSESSMENT Section 1. Each interested party or purchaser of a lot, tract or parcel of ground, nee ies lots, as platted in this Subdivision, is hereby made aware of the fact thet all streets herein are dedicat r dedicated to the use of the Property Owners herein and are dedicated or will be dedicated to the use of the tty Owners herein and are not dedicated to the County of Bandera or the County of Medina, any municipal bi the public. Such purchaser or other interested party is hereby given notice that the rmai other designated areas and facilities, called common areas, and other conveniences the pleasure, comfort, security and enjoyment of the property owners in Hills ra Ranch will be provided for through an assessment, or assessments, as the case may be, to be levied agai and every lot as is platted orto be platted in Hilts of Bandera Ranch, and any other tract or parcel of lands in that will benefft from the use of

or assessments, as the case may be, to be levied agai and every lot as is platted orto be platted in Hilts of Bandera Ranch, and any other tract or parcel of lands in that will benefft from the use of common areas and common facilities to be maintained by assessment, su: tErmination to be made by the Authority created herein.

ft public authority, nor to ce of such streets and necessary and requisite to Section 2. AGREEMENT. Each purchaser of a prope Dectarant has the authority, and in consideration of the necessi management and maintenance of all common areas, servic give unto the said Declarant, its successors and assigns th: to expend said funds as necessary, subject to the rect maintenance of all facilities and areas and services The Declarant, its successors or assign cause to be created a Property Owners Associa’ owners of property in Hills of Bandera Ranch and Property Owners Association and conve' conveyance would be subject to aff te property owners in this and other ins mean any legal person or body ho!

in QF of Bandera Ranch hereby agrees that the an authority to administer the funds and attend to the cilites in said Subdivision, does hereby grant and to levy and collect assessments es necessary, and ents as hereinafter set forth, for the purpose of the above and hereinafter described.

at its sole discretion, after 75% of the lots have been sold, charter and bylaws approved by Declarant and members, being clarant shall assign the authority created in this instrument to said uch association, as trustee all the various common areas. Such ents, authority and limitations as are imposed upon Declarant and . Hereinafter, the title THE AUTHORITY for purpases of this instrument will authority granted in this instrument.

s common areas. Such ents, authority and limitations as are imposed upon Declarant and . Hereinafter, the title THE AUTHORITY for purpases of this instrument will authority granted in this instrument.

Section 3. COMM erein stipulated that designated common areas may be used for any purpose required or deemed by the advantageous to the property owners in the project, such purpose to include but not be limited to the instaltation oPany or all utilities, and dedication of such easements and rights of way as deemed necessary by said Authority, such dedications may be made upon e plat thereof or by separate instrument in writing and such dedication may be made at the discretion of the authority at any time, present or future, or the Authority may allow the installation of any main or service extensions in said Commons by letter or formal agreement to the utility company, or may allow installation of service lines from main to dwelling or outlets by oral approval. Any such installations made will be considered approved if the Authority has not ordered such installation halted prior to completion thereof, Section 4. EFFECTIVE DATE OF ASSESSMENTS. Any or all levies for any or all purposes as herein set forth may be made and begun at an appropiate time as will be determined by the Authority. Said action may be made to affect, at different times, any sections or tracts and levies for maintenance of general or specific areas may be made or begun at different dates, and are not required to be made simultaneously.

When such detarmination is made by the Autharity, notice will be given to the Owners of such properties as affected and all said Owners will then be required to pay said assessments to the Authority.

When such detarmination is made by the Autharity, notice will be given to the Owners of such properties as affected and all said Owners will then be required to pay said assessments to the Authority.

Section 5. HANDLING OF ASSESSED FUNDS. Itis specified herein that all funds collected by the Authonity for maintenance and services of commons will be kept in a special bank account of savings account to be used only for the purposes as herein stated, and an itemized account of all receipts and disbursements will be mailed or emailed quarterly to all property owners in said project.

¥ at any ime the Ovmers of fifty-one (51) percent or more of the tracts affected by an assessment desire that the fund so established and the books and records pertaining thereto be audited, then said Owners ma ffaing their signatures to a petition, cause such audit to be made. Such petition will cite the account by its properg tion and shail stputate the name of a Certified Public Accountant who shall make such audit and the date records shalt be made available to said Accountant. The Authority will then be compelled to make such fo itable to the named Certified Public Accountant, in the offices of the Authority or other place at the discretio uthority and will be authorized to pay to such Accountant, reasonable accounting fees for said audit from funds of the account so audited. : ‘. %& Section 6. ESTABLISHMENT OF AMOUNT OF ASSESSMENT. The Ge itally setting the monthly levy oF assessment for any purpose stated herein, will do so on an estimated basi ad by an in-depth study of the allowed expenses as herein set forth or should said assessment prove to than needed for such purposes, then

allowed expenses as herein set forth or should said assessment prove to than needed for such purposes, then the Authority will reduce said levy accordingly.

' Section 7. SPECIAL ASSESSMENTS. The Authority will #1 Tight, privilege and powers to levy special assessments as may become necessary for purposes as requiregj an@authorized herein. Such special assessments would be made on the same pro-rata basis as hereinabo' rth and paid to Authority as prescribed by said Authavity. Upon the approval of the Owners of fifty-one (51 of the tracts, subject to any special assessment, such special assessments could be made for the purpos: construction or reconstruction of improvements for the use and benefit of such Owners in the Common areas‘ Section 8. COLLECTION OF ASSESS » The Authority wilt have the sole responsibility and authority to collect all assessments. Such assessments will bewwried on a monthly basis and Authority will have the power to allow certain reasonable discounts to Owners p id assessments semi-annually or annually in advance. Authority will go ee . wFBMBS ON IL 2014030325 03/07/2014 01:47:03PM Page 7 of 41 have the power to add to such assessments appropriate and reasonable penalties against said Owners for delinquency in payment of assessments as well as the other remedies set forth herein.

Section 3. DELINQUENT ASSESSMENTS. Any Owner being thirty (30) days delinquentin tof any assessment will have filed against his property a lien for such assessment, plus any penalties and cgageNgach'lien shall semain in effect unt! all past due assessments, penalties and costs have been paid or satisfie; 2 set forth herein.

is property a lien for such assessment, plus any penalties and cgageNgach'lien shall semain in effect unt! all past due assessments, penalties and costs have been paid or satisfie; 2 set forth herein.

ection 10. ENFORCEMENT OF LIENS. Each lien established by the Authority pursfqpt to"the provisions of this ‘instrument, by recording with County Clerk of this county, a notice of delinquency andgie said property may be foreclosed, as and in the same manner as is provided for the foreclosure of a mortga real property under the laws of the State of Texas, just as though said Authority had retained a vendor's {i a Deed of Trust and note against said property. In any action to foreclose any such lien, the ww entitied to costs, including reasonable attomey's fees, and other allowed costs and penatties.

Section 11, RESERVATION OF LIENS. The Authority does her e unto itself, establish and impose, a lien, thereby securing each assessment imposed or to be imposed, ly provided for herein, togather with any costs, interest, or penalties against all the property covered in this ment subject only to any limitations and/or Provisions in this instrument.

Section 12. SUBORDINATION TO MORTGAGE. AS very assessment and lien, together with any cost, penalties or interest, established, reserved or imposed u instrument and authority shall be subordinate to any prior valid bonafide mortgage or trust deed (and the li f title thereof) which has been or may hereafter be given in good faith and for value on any interest of any by this instrument and authority. Any subsequent Owner of any property so covered, purchased at forecto' ll be bound by restrictions, conditions, covenants, reservations, assessments and liens set out in his mee nctuding, however, any assessment or tlen ansing prior to the

covered, purchased at forecto' ll be bound by restrictions, conditions, covenants, reservations, assessments and liens set out in his mee nctuding, however, any assessment or tlen ansing prior to the forectosure sale.

hereinafter called Developer, will sel hasers properties within said project. It is specifically stated and agreed that if one of more tracts or parcels of 'e sold to any purchaser by Developer, by contract for deed, or deed with tien and note or other insttume chaser defaults in payments of said lien in any manner, such as failure to pay principal, interest, taxes, in or assessments set out hereunder and said property be repossessed, or such contract cancelled by Develop®, or any assignee of Developer's righi title and interest in any such lien or contract, then Developer or said assignee will not be required to pay to the Authority any delinquent or past due assessments or penalties and any Hens for non-payment of same filed by said Authority will be released es regards such property, evidence of such cancellation, repossession or foreclosure wiil, in itself, be sufficient with no further release or action required by the Authority for this purpose; however, this stipulation does not by any means relieve the purchaser in default who failed to pay such assessments levied and/or penalties and cost, and from whom said property was repossessed, of his personal liability to pay such delinquent funds, though such delinquency will not be attached to such property as a lien in this instance.

¢ Section 13. EXCLUSION s OPER. The Developer of this project, its succassors and assigns, Section 14, RULES AND REGULATIONS GOVERNING USE OF COMMONS AND FACILITIES THEREIN.

s a lien in this instance.

¢ Section 13. EXCLUSION s OPER. The Developer of this project, its succassors and assigns, Section 14, RULES AND REGULATIONS GOVERNING USE OF COMMONS AND FACILITIES THEREIN.

Rules and regutations governing the use of all commons and facilities will be made and enforced by the Authority, to insure the best and mutual enjoyment thereof of all the qualified property owners and their guests. Any Owner who fails to pay assessments levied ar fails to comply with any requirements or rules and regulations governing the use of said commons and facilities will be denied the use thereof. Such rules and regulations to be made and enforced by the Authority will include, but not be limited to, rules concerning guest privileges to commons, recreation facilities, if any, speed limits on streets, type of vehicles on streets and other commons, contro! of noise, use of irrigation water and channets or canals.

Section 15. DELEGATION OF USE OF FACILITIES. Any Owner may delegate his right of enjoyment to the common areas and facilities to the members of his family, his tenants, or contract purchasers who zégide on the Property.

Section 16. MAINTENANCE OF TRACTS. The Owner of a tract or tracts in the projacy rv to keep Said property free of any unsightly or offensive growth or accumulation of trash, garbage, or Gs deposits of any d nature or kind from the date of purchase of said tract. This requirement is effective on occM@&e: unoccupied tracts.

Ten days after notice to Owner of such situation existing, the Authority hereinabove craa jis employees will have the right and authomy to enter upon said premises and correct existing violation of ements so stated. Such

e to Owner of such situation existing, the Authority hereinabove craa jis employees will have the right and authomy to enter upon said premises and correct existing violation of ements so stated. Such reasonable service charge per month, for each instance, until Owner pays sai BF in full as billed. All monies so owed the Authomy wil) become a spacial assassmant against the propazty of Section 17. EXTERIOR MAINTENANCE OF BUILDINGS. In the, should allow such building to fall into disrepair and become in need become unattractive and notin keeping with the neighborhood, the written notice of such conditions. Fifteen (15) days after notice of and continue at a reasonable rate of progress to correct suc do or cause to be done any work necessary to correct said 5% percent (10%). All monies so owed the Authority will be lhe owner of any building in the project rapair, or restoration of any nature and as herein estabiished will give such owner cl dition to owner, and failure of owner to begin ion, the Authority may enter upon said premises to The owner thereof shall be billed for cost plus ten Special assessment against the propery of Owner.

Section 18. UTILITY FEE. The Authority ey ted is empowered to contract with 2 utility company for the Owner of each tract or dwelling in this project t@pa amount of $1.00 (one dollar) to be paid in cash or added to such owner's electric bill-each month, as a con in toward payment for the operation and maintenance of street a s 2014030325 03/07/2014 01:47:03PM Page lighting in this project. This fee may be adjusted up or down within raason in accord with the rates of the utility company.

eration and maintenance of street a s 2014030325 03/07/2014 01:47:03PM Page lighting in this project. This fee may be adjusted up or down within raason in accord with the rates of the utility company.

Authority may include funds for street lights in the general assessment.

Section 19. NOTICE. in all instances herein where notice is required, notice will have been giv, acing in the United States mail, said notice to the lest known address of such person or party to whom ni be given.

herein that the Developar, its successors, and assigns, will have the right of use of alt C&mmans. Such use will be atlowec for the purposes of promotion and sale of property by said Developer and wilkin é right of Developer to issue passes and permits to guests or prospective purchasers of property and tae ployees to use and enjoy Section 20. DEVELOPER'S USE OF COMMONS. It is specifically agreed by eagh sar and stipulated for limhed penods, such commons, facilities, and services. This rightis reserve: x eveloper, its successors, and assigns, so long as said Developers owns tand in the project and is maw ARTICLE X. LAW ENFORCEMENT AN RIGHTS Section 1. TRAFFIC LAW. Notwithstanding the fact that al! e@ roads and streets in this project are or may de dedicated not unto the public, but only to the property owne the project, 2s easements, itis hereby stipulated that the Commissioners Court will have the full authority to estab! d limits or other traffic laws and rules, and penalties for violation thereof upon the streets of this project, and orcement officers of the County or of the State of Texas or any other official body having such authority, m f upon this project to enforce the speed limits 2s set by

the streets of this project, and orcement officers of the County or of the State of Texas or any other official body having such authority, m f upon this project to enforce the speed limits 2s set by the County Commissioner's Court or other entity or , just as though said roadways were public.

Section 2. PUBLIC LAW. Nowwstana age ct that commons in the project are private and dedicated only unto he property owners within the project, hi stipulated that any law enforcement officer, County, State, or Federal, is hereby authorized to enter vale premises of the project for all purposes just as though the project commons were dedicated unto the pipbli very law enforcement officer will have the same rights, privileges and duties within the boundavies of this pM 6 would in any subdivision whereby the streets and other sammons and facilities were dedicated to the publi Section 3. RIGHT. DEDICATION. Notwithstanding the fact thet all roads within this project are dedicated to the property o' nd are not public roads and are not dedicated to the county or any other body politic, it is hereby stiputated that afteMfive (5) years from date should the Owners of fifty-one (51) percent of the total tracts in the project so desire and execute a petition to the County Commissioner's Court, petitioning such court to accept said roads as County roadways and should such court accept said roads and agree to maintain same, then said roads shall become County roadways and open unto the public and shall be maintained by the County and such road shall cease to be private roadways. For the purpose of this section, any common, drive, access easement or private road in portion or in total may be considered as roads if established for vehicular traffic.

ARTICLE Xl. GENERAL PROVISIONS

r the purpose of this section, any common, drive, access easement or private road in portion or in total may be considered as roads if established for vehicular traffic.

ARTICLE Xl. GENERAL PROVISIONS Section 1. Declarant, the Association, or any Owner shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, easements, reservations, liens, and charges now or hereafter imposed by the provisions of this declaration. Failure by Declarant, the Association, or by any Owner to enforce any covenani or restriction herein contained shail in no event be deemed a waiver of the rights to do so thereafter.

Section 2. Invalidation of any one of these covenants of restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and effect.

Section 3. No breach of any of the conditions herein contained or re-entry by reason of such breach shall defeat or render invalid the lien of any mortgage made in good faith and for value as to the project or a ci therein; provided, nowever, that such conditions shall be binding on any Owner whose title is acquired by for trustee's sale, or otherwise. SS Section 4. The covenants and restrictions of this declaration shall nin with and bin ind, and shall inure to the benefit of and be enforceable by the Association or any member thereof for a period®& -five (25) years from the date hereof, and thereafter shall continue automatically in effect for additional per ten (10) years, unless otherwise agreed to in writing by the then Owners of at least seventy-five percent (7: NO: tracts based upon one vote for each tract owned.

° Section 5. Declarant shall have the right during the term of the conti SY this agreement to add to the reai

of at least seventy-five percent (7: NO: tracts based upon one vote for each tract owned.

° Section 5. Declarant shall have the right during the term of the conti SY this agreement to add to the reai property within the project any contiguous tracts and the Owners of the tra in Such added portion shali become members of the Association on the same terms and conditions and subj le same restrictions as apply to Owners of tracts within the original project. “ 19 of 41 STATE OF TEXAS § COUNTY OF BANDERA § Ss AND § cs : > o EXECUTED THIS th day of ,20 , at Bandera, Banders Koy exas.

CIELO TI yr.

COUNTY OF MEDINA By: ace Management LLC, its sole vai pariner Ss Donatd L. Apostolo, {ts Sole Manager This instrument was ack ed before me this day of , 20 . by OL.

Apostolo, Manager of “wy agement, LLC.

Notary Public, State ofTexas SEAL EXECUTED THIS th day of , 20 . at Hondo, Medina County, Texas.

CIELO TRACE, LP.

By: Cielo Trace Management LLC, its sole general partner BY? oe eeeeeeeeeeeeteees .

Donald L. azcikog Its Sole vw NO \ This instrument was acknowledged before me this day . , 20 » by DLL.

Notary Public, State ofTexes ~ SEAL cs S Page BO Of 41 ss EXHISIT “A“ All those certain lots, tracts or parcals of Jand located and situated in Hills ococKog »S, a and Medina County, Texes, as shown by plat of said subdivision recorded in Vg! , page ‘i of the Plat Records of Bandera County, Texas, and in Volume of the Plat ‘ a Records of Medina County, Texas. é Cy Filed for record date Ss location ——eor cs Doc. # A Oo Sreaies 9 322007 es 2014030325

ecords of Bandera County, Texas, and in Volume of the Plat ‘ a Records of Medina County, Texas. é Cy Filed for record date Ss location ——eor cs Doc. # A Oo Sreaies 9 322007 es 2014030325 03/07/2014 01:47:03 PM Page 32 of BYTEX 10.

ABA BOHEMATIC REP DELPOTCH BAY TAKE PLACE 11. THE MOTS 1 13. CONTOUR * ALLEN D. HOOVER 00043 ости пасти Medina County Unofficial Co COURTY ADIL BIA COUNTY EXA Rolata Hou Bilure Do y LOCATION MAP SHEET 2 STATE OF TEXAS COUNTY OF BANDERA STATE OF TEXAS COUNTY OF BANDERA C. ALLIRON ROWLAND MyCamp Aquel 04, 2001 AND THE CAPICITY SHENER STATES 4 SHEET SHEET 5 SHEET 3 903-573-4706 BATION DOVER ENOMINE INC.

VOLUME / PAGE 10 VICINITY MAP SCALE 2000 830-249-000 1130, 173 830-796-7177 EXHIBIT Subject Thac UTILITY CASEME Medina County Unofficial Copy MATKIN-HOOVER ENGINEERING, INC.

A FINAL PLAT FONCH HILLS OF BANDERA RANCH A SUBDIVISION OF BANDERA COUNTY CONTAINING $46.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) DATE: JUNE 20, 2007 PRAWINOX HELLEOF DINING COXORONATE JUNE 2007 CAD CIVIL ENGINEERS P.O. BOX SPRAWNMG AND DM LAND PLANNERS & SPENCER ROAD, SUITE 180 COMERULTANTS BOERNE, TEXAS 78004 SHEET PH: 830-243-0000 1 OF 7 GROGAN SURVEYING, INC.

1135 HWY. 173 NORTH BANDERA, TEXAS 78003 PH. 830-796-7177 Page 33 of 41 Medina County Unofficial Copy A FINAL PLAT FOR HILLS OF BANDERA RANCH A SUBDIVISION OF BANDERA COUNTY CONTAINING $46.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIΜΑΤΕ ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) DATE: JUN 20, 2007 DARNING:

ESS, AND COMPRISING APPROXIΜΑΤΕ ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) DATE: JUN 20, 2007 DARNING: SONG DRAWN BY: MIG AND D JUNE 2007 SHEET 2 OF 7 GROGAN SURVEYING, INC.

1135 HWY. 173 NORTH BANDERA, TEXAS 78003 PH. 830-796-7177 SCALE 1 200 200 GRAPHIC SCALE TENCE PEST PAROT BUNCTURE нение итLITY LINE PENCE LIME SALDO D 0.04 ACRE FOR ROAD PURPOSES TO BE DEDICATED TO THE TO THE COUNTY i BURVEY NO. 1032 VOLUME PAGE // BANDERA CREEN 0.382 ACRES 76 5.13 ACRES 5.08 ACRES 5.03 ACRES May 6, 2008 CONCHO LANE BO FT. WE (74 5.00 ACRES ROAD 10.55 AGRES 5.54 ACRES W ② 7.69 ACRES 5 10.45 ACRES 832 ACRES 7.94 ACRES 7.

EL PABO EXIRIGATIOU.CO.

BURVEY MO. 12536 ABSTRACT NO. 133 HILLS OF BANDERA ROAD FT. WIDE PRIVATE ROAD Medina County Unofficial Copy (72 8.31 ACRES 5:87 ACRES 6.92 ACRES 68 5.20 ACRES SADDLEBACK RIDGE TRAIL VATE ROAD LUME SHEET 1 Com SURVEY HO. 100.5 VOLUME PAGE 12/ 124.83 ACRES 17. 1811 COORDINAT DRAW MANO D SHEET 3 OF 7 GROGAN SURVEYING, INC 1135 HWY. 173 NORTH BANDERA, TEXAS 7800.5 PH. 830-796-7177 A FINAL PLAT FOR HILLS OF BANDERA RANCH A SUBDIVISION OF BANDERA COUNTY CONTAINING 645.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) JUNE 2007 Page 4 of 41 9 ACRES 7.59 ACRES 10.57 ACRES 7.78 ACRES 8.50 ACRES (10) 7.92 ACRES (11 12 7.23 ACRES 8.87 ACRES (13) 9.84 AGRES 14 12.94 ACRES 0611 SADDLE BACK RIDGE TRAIL PMATE ROAD ACRES JOSEPH HUGHES SURVEY NO. 1232 ABSTRACT NO. 180 HILLS OF BANDERA ROAD FT. WIOL YATE ROAD 25 9.01 ACRES CJAR ADRES 12.73 AGRES 23 8.90 ACRES R ESCORES (706 ACRES

SADDLE BACK RIDGE TRAIL PMATE ROAD ACRES JOSEPH HUGHES SURVEY NO. 1232 ABSTRACT NO. 180 HILLS OF BANDERA ROAD FT. WIOL YATE ROAD 25 9.01 ACRES CJAR ADRES 12.73 AGRES 23 8.90 ACRES R ESCORES (706 ACRES Medina County Unofficial Copy ACRES 20 10.36 ACRES 205 TOA (15 9.98 ACRES 19 6.23 ACRES 18 4.27 ACRES (9) 7.72 ACRES B 15.04 ACRES, MATCH UNE SHELL 124.83 ACRES ) SURVEY MO. 12304 Medina County Unofficial Copy 10.39 ACRES FT, VDICULAR HOW-ACCESS CAREMENT RECORD CALLS SCALE 1 200 200 GRAPHIC SCALE LOR PENCE POST NOOIT SUNCY LINE IDINÇAS UTRUITY UNE PONCE UNE SURVEY NO. 1231 2014030325 03/07/2014 01:47:03 PM Page 35 of 41 18.51 ACRES DANCE LABEMENT KE MESE MO 8.8. & F.

SURVEY PO.5 ABSTRACT NO.53 KHOACETS EVENT Unofficial Copy MATCH ME SHEETS 77.4 178 Outstac rence.

66 16.12 ACBES PRAPLACE CAGEMENT TRE MELTS 15.57 ACRES (65 8,98 ACRES 62 24 ACRES 8.31-AGRES DAVENPORT WERTH SURVEY POOL & ABSTRACT KO. 1533 (BANDERA) ABSTRACT.PO 1753 (MEDINA) CRES 60 ACRES OUTSIK генсе5.56 ACRES (57) 5.00 ACRES (56) 5.00 ACRES Medina O 6.82 ACRES SADDLEBACK RIDGE TRAIL 80 FT. MOX PRIVATE ROND 25 9.01 ACRES 48 ACRES 1348 кку 9 648 AGRES N 26 6.55 R TEX SHEETS & AND T XOS ACRES BAST BURVEY NO. 6 1.25 ACRES 1953 B 16.04 ACRES WATCH LIVE SHEETS Medina County Unon Inofficial Copy EXISTING FOLL 30 747 ACRES 47 ACRES MUSTANG PASS ROAD 5.16/ACRES 7.55 ACRES SCALE 1 200 100 200 400 600 GRAPHIC SCALE T PATDIR SYVEY RE INDICAS VILITY LAE FIDICE URE 39 5:41 ACRES 17.

5.52 ACRES SADDLEBACKRIDGE TRAIL DE PRIVATE ROAD CAREMONT A FINAL PLAT FO ANCH HILLS OF BANDERA RANCH A SUBDIVISION OF BANDERA COUNTY CONTAINING 646.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE

ERA COUNTY CONTAINING 646.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) DATE: JUUN 20, 2007 DRAWINGS HE COPROMATE EX DRAWN BY: MG AND DM SHEET 4 JUNE 2007 OF 7 GROGAN SURVEYING, INC 1135 HWY. 173 NORTH BANDERA, TEXAS 78003 PH. 830-796-7177 VOLUME 7 PAGE 13 2014030325 03/07/2014 01:47:03 PM Page 36 of 41 UST (78 THEETT лик ACCESS ARCMENT (56) 5.00 ACRES MUSTANG PASS FT. MOE PRIVATE ROAD 42 7.55 ACRES 5.16/ACRES -221-AGRES 7.67 ACRES (55) 5.06 ACRES 5.04 ACRES A. Mogilt SURVEY NO. 63 ABSTRACT NO. 2518 (BANDERA) ABSTRACT NO. 1531 (MEDIMA) NON-ACCESS Medina County Unofficial Copy CRES 52 5.66 ACRES 5.84 ACRES 1281 8.17 ACRES 5.66 ACRES C 0.16 ACRE 8.74 AGRES 37 2 ACRES VOLUME 7 PAGE 14 5.52 ACRES (39) 5:44 ACRES SADDLEBACKRIDGE TRAIL (48 11.72 ACRES 34 5.68 ACRES SCALE 1 200 408 GRAPHIC SCALE STANE POUM STANLE PENCE PORT PATENT ARVEY LE OVERHEAS VILITY LINE ΠΡΟΣ UNE CALLS ARE SHOWN PARDONCIES Wedina County Unofficial Copy BANDERA COUNTY MEDINA COUNTY ACCES 12.03 ACRES 50 7.12 ACRES 600 A FINAL PLAT F HILLS OF KANCH SUBDIVISION OF BANDERA COUNTY CONTAINING 646.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE ACREAGE OUT OF VARIOUS ORIGINAL PATENT SURVEYS IN BANDERA AND MEDINA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN MORE THAN ONE PATENT) DATE: JUNE 20, 2007 DRAWN BY: MO AND OM JUNE 2007 SHEET 5 OF 7 GROGAN SURVEYING, INC.

1135 HWY, 173 NORTH BANDERA, TEXAS 78003 PH. 830-796-7177 DRAINAGE EAS DETAIL AFINAL PLAT HILLS OF BANDE CH a F BANDERA COUNTY CONTAINING 648.84 ACRES Q AROOUS ORIGINAL PATENT SURVEYS IN BANDERA ARO MEDINA or 7 a 2 aes sO “Be oO ga PIS a erste a Bez 3] , AFINAL PLAT

EAS DETAIL AFINAL PLAT HILLS OF BANDE CH a F BANDERA COUNTY CONTAINING 648.84 ACRES Q AROOUS ORIGINAL PATENT SURVEYS IN BANDERA ARO MEDINA or 7 a 2 aes sO “Be oO ga PIS a erste a Bez 3] , AFINAL PLAT HILLS OF BANDERA RANCH A SUBDIVISION OF BANDERA COUNTY CONTAINING 646.84 ACRES OF LAND, MORE OR LESS, AND COMPRISING APPROXIMATE AND MEDIMA COUNTIES, TEXAS (AS SHOWN ON LOTS WITH ACREAGE IN WORE THAN ONE PATENT) GOOria ATE Fue: if Pore if sHeet. 7 DRAINAGE EAS STATE OF TEXAS : COUNTY OF BANDERA 5 2014030325 03/07/2014 01:47:03 PM Page 39 of 41 DOC 00166798 VOL 787 PG 389 AND 5 COUNTY OF MEDINA 5 EXECUTED THIS 28th day of June 2007 at Bandera County, Texas.

TRACE, LP.

County Unofficial Copy Cielo Trace Management LLC, its acle general partner B Donald Apostolo, Its Sole Manager Thts Instrum Apostolo, Manager acknowledged before me this 28 day of JUNE 2007 by D.L.

No Trace Management, LLC.

Cacobi B Edward Notary Public, State of Texas SEAL CAROLYN BL EDWARDS BODRY PUBLIC STATE OF TEDAS FEBRUARY 27, 2010 Medina County Unofficial Copy 27:290. 1000:00 AM N EXHIBIT TAT All those certain lots, tracts or parcels of tand located and situated in Hills Bandera Ranch, recorded in page, of the Ptat Filed for Recerd lad Beadera Counts Oat Jon 28e2007 ot O3:07P tsa Docuseat thaber : Aaoust .

Recalst Humber ~ 68415 ?

Tengle Honsf eld fas provision herein which restricts the sale: rental or use of the described real proverts becuse of calor or race is invelld ead usenforcechie under Federal Law.

STATE OF TEXAS COUNTY OF BANDERA?

I hereks cartif'y that this filed os the dete cad Couats as stewed herena bs ua.

dn 7812007 Candy Wheelers Counts Clerk Couats 2014030325 03/07/2014 01:47:03 PM Page 41 of 41

TEXAS COUNTY OF BANDERA?

I hereks cartif'y that this filed os the dete cad Couats as stewed herena bs ua.

dn 7812007 Candy Wheelers Counts Clerk Couats 2014030325 03/07/2014 01:47:03 PM Page 41 of 41 FILED AND RECORDED Instrument Number: 2014030325 Ss Filing and Recording Date: 03/07/2014 01:47:03 AR s:41 Recording Fee: $182.00 | hereby certify that this instrument was FILED &y date and time stamped hereon and RECORDED in the PUBLIC RECORDS of ww County, Texas.

¢ N J Wernette, County Clerk edina County, Texas