First Draft Working Copy_Version 4.0

AMENDED AND RESTATEDDECLARATION OF COVENANTS,

CONDITIONS, AND RESTRICTIONS

LA VENTANA[HAYS COUNTY, TEXAS]

THIS DOCUMENT AMENDS AND RESTATES IN THE ENTIRETY THAT CERTAIN: (I) DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 9928686, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (II) FIRST AMENDED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 00003576, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (III) SECOND AMENDED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 00007993, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (IV) SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 01000670, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (V) THIRD AMENDED DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 02026515, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (VI) SECOND SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 0400687, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (VII) THIRD SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, RECORDED AS DOCUMENT NO. 06018526, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS; (VIII) FOURTH SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR LA VENTANA, EXECUTED DECEMBER 5, 2006, RECORDED AS DOCUMENT NO. ______________________________; AND (IX) NOTICE OF ADDITIONAL LAND THE PRESERVE AT LA VENTANA, PHASE TWO, RECORDED AS DOCUMENT NO. 05012954, OFFICIAL PUBLIC RECORDS OF HAYS COUNTY, TEXAS.

This Amended and Restated Declaration of Covenants, Conditions, and Restrictions may be used only in connection with the residential community known as La Ventana in Hays County, Texas, and the operation of La Ventana Ranch Owners’ Association, Inc.

AMENDED AND RESTATEDDECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS

LA VENTANATABLE OF CONTENTS

Page

ARTICLE 1 DEFINITIONS.........................................................................3

ARTICLE 2 GENERAL AND USE RESTRICTIONS.....................................72.1 General ...............................................................................72.2 Single-Family Residential Use.............................................82.3 Subdividing..........................................................................82.4 Hazardous Activities............................................................82.5 Mining and Drilling..............................................................92.6 Noise ...............................................................................92.7 Animals - Household Pets....................................................92.8 Rubbish and Debris............................................................102.9 Maintenance......................................................................102.10 Street Landscape Area-Owner’s Obligation to Maintain

Landscaping.......................................................................112.11 Signs .............................................................................122.12 Temporary Structures........................................................152.13 Unsightly Articles...............................................................152.14 Mobile Homes, Travel Trailers, Cattle Trailers, and

Recreational Vehicles.........................................................152.14 Basketball Goals; Permanent and Portable.......................152.16 Compliance with Restrictions............................................162.17 Liability of Owners for Damage to Common Area..............162.18 No Warranty of Enforceability...........................................172.19 Rentals .............................................................................172.20 Equestrian Activity.............................................................182.21 Designated Equestrian Riding Areas.................................182.22 Central Propane Gas System..............................................19

ARTICLE 3 MINIMUM CONSTRUCTION STANDARDS AND REQUIREMENTS................................................................19

3.1 General .............................................................................313.2 Construction Standards.....................................................203.3 Main Improvements...........................................................233.4 Conservation Measures......................................................263.5 Utilities .............................................................................283.6 Construction Control Measures.........................................29

ARTICLE 4 LA VENTANA RANCH OWNERS’ ASSOCIATION, INC..........394.1 Organization.......................................................................394.2 Membership.......................................................................39

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Table of Contents(Continued)

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4.3 Governance........................................................................404.4 Voting Rights.....................................................................404.5 Powers .............................................................................404.6 Conveyance of Common Area to the Association...............444.7 Indemnification..................................................................444.8 Insurance...............................................................................

444.9 Bulk Rate Contracts...........................................................454.10 Private Roads.....................................................................45

ARTICLE 5 INSURANCE.........................................................................455.1 Insurance...............................................................................

455.2 Restoration.........................................................................455.3 Mechanic’s and Materialmen’s Lien..................................46

ARTICLE 6 COVENANT FOR ASSESSMENTS.........................................476.1 Assessments.......................................................................476.2 Regular Assessments.........................................................476.3 Special Assessments..........................................................476.4 Individual Assessments......................................................486.5 Amount of Assessment.......................................................486.6 Late Charges......................................................................486.7 Owner’s Personal Obligation; Interest...............................496.8 Assessment Lien and Foreclosure......................................496.9 Exempt Property................................................................516.10 Fines and Damages Assessment.........................................51

ARTICLE 7 ARCHITECTURAL COMMITTEE (AC)..................................517.1 Purpose .............................................................................567.2 Authorities and Limitations...............................................567.3 Members of the Architectural Committee.............................7.4 Processes and Procedures of the Architectural Committee7.5 Waivers and Variances7.6 Owner Appeals of Decisions Rendered by the Architectural

Committee7.7 Non-Liability of AC Members

ARTICLE 8 MORTGAGE PROVISIONS..................................................578.1 Notice of Action.................................................................578.2 Examination of Books........................................................588.3 Taxes, Assessments and Charges.......................................58

ARTICLE 9 GENERAL PROVISIONS.......................................................589.1 Term 589.2 Eminent Domain................................................................599.3 Amendment........................................................................599.4 Enforcement.......................................................................599.5 Higher Authority................................................................59

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Table of Contents(Continued)

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9.6 Severability........................................................................599.7 Conflicts.................................................................................

609.8 Gender .............................................................................609.9 Acceptance by Owners.......................................................609.10 Damage and Destruction....................................................609.11 No Partition........................................................................619.12 Notices .............................................................................619.13 View Impairment................................................................619.14 Safety and Security............................................................61

ARTICLE 10 EASEMENTS.........................................................................6210.1 Reserved Easements..........................................................6210.2 Utility Easements...............................................................62

ARTICLE 11 PROPERTY RIGHTS..............................................................6211.1 Addition of Land.................................................................6211.2 Withdrawal of Land............................................................6311.3 Notice of Plat Recordation.................................................63

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AMENDED AND RESTATEDDECLARATION OF COVENANTS, CONDITIONS, AND RESTRICTIONS

LA VENTANA

This Amended and Restated Declaration of Covenants, Conditions, and Restrictions for La Ventana (the “Declaration”) is made by a majority of the Members, authorized to vote, of the La Ventana Ranch Owners Association), and is as follows:

R E C I T A L S:

A. La Ventana Driftwood, L.P., a Texas limited partnership (the “Original Declarant”) previously executed and recorded that certain Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 9928686, Official Public Records of Hays County, Texas, as amended and supplemented by: (i) that certain First Amended Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 00003576, Official Public Records of Hays County, Texas; (ii) that certain Second Amended Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 00007993, Official Public Records of Hays County, Texas; (iii) that certain Supplemental Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 01000670, Official Public Records of Hays County, Texas; (iv) that certain Third Amended Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 02026515, Official Public Records of Hays County, Texas; (v) that certain Second Supplemental Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 0400687, Official Public Records of Hays County, Texas; (vi) that certain Third Supplemental Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document No. 06018526, Official Public Records of Hays County, Texas; (vii) that certain Fourth Supplemental Declaration of Covenants, Conditions and Restrictions for La Ventana, recorded as Document Official Public Records of Hays County, Texas; and (viii) that certain Notice of Additional Land The Preserve At La Ventana, Phase Two, recorded May 11, 2005, as Document No. 05012954, Official Public Records of Hays County, Texas (collectively, the “Original Declaration”).

B. Pursuant to that certain agreement entered into by and between Pacesetter Homes, LLC and La Ventana Ranch Owners Association, Inc. (“La Ventana”), on or about December 4, 2016, Pacesetter Homes, LLC, terminated the Development Period.

C. La Ventana Ranch Owners (ROA) Association, with the approval of a majority of Members or the ROA, now desires to amend and restate in its entirety the Original Declaration as set forth herein below.

NOW, THEREFORE, it is hereby declared: (i) that the Property (or any portion thereof) which has heretofore been subject to the Original Declaration, shall be held sold, conveyed, used, and occupied subject to the following covenants, conditions, and restrictions which will run with such portions of the Property and will be binding upon all parties having right, title, or interest in or to

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such portions of the Property or any part thereof, their heirs, successors, and assigns and will inure to the benefit of each owner thereof; (ii) that each contract or deed conveying the Property (or any portion thereof) will conclusively be held to have been executed, delivered, and accepted subject to the following covenants, conditions, and restrictions, regardless of whether or not the same are set out in full or by reference in said contract or deed; and (iii) upon recording of this Declaration, the Original Declaration shall be amended, restated, and replaced in its entirety by the terms and provisions of this Declaration.

This Declaration uses notes (text set apart in boxes) to illustrate concepts and assist the reader. If there is a conflict between any note and the text of this Declaration, the text will control. Do we want to do this?

Any term of this Declaration to the contrary notwithstanding, in no event shall this Declaration in any way modify, eliminate, or limit any right, exemption, privilege, or ability of Pacesetter Homes LLC or its purchasers, builders, contractors or assigns pursuant to that certain Agreement and Mutual Release by and between Pacesetter Homes LLC and La Ventana Ranch Owners Association, Inc., a true and correct copy of which is attached hereto as Appendix “A” (the “Settlement Agreement”). Any provision of this Declaration purporting to so modify, eliminate, or limit any such right, exemption, privilege, or ability of Pacesetter Homes, LLC or its purchasers, builders, contractors assigns under the provisions of the the Settlement Agreement shall be void and unenforceable.

ARTICLE 1DEFINITIONS

Unless the context otherwise specifies or requires, the following words and phrases when used in this Declaration will have the meanings hereinafter specified:

“Access Gate(s)” means any subdivision entry facilities serving the Property, including, but not limited to, gates, call boxes, controllers, and all other facilities associated with operation of gates restricting access to the Private Roads. The Access Gates are hereby designated as Common Area. The Access Gates will be maintained by the Association in good condition and repair, as determined from time to time by the Board, in accordance with Applicable Law. Such Access Gates shall not be relied on by the Owners and others for security of property and person. Notwithstanding anything to the contrary contained herein, the Association retains the right to charge Owners a fee or deposit for the issuance of, or replacement of, privacy gate remote access cards and/or units. Additionally, the Board, in its sole discretion, shall determine when the Access Gates will be operational, including but not limited to hours of operation and periods when the Access Gates will remain open. Each Main House shall be wired to access and operate the remote functions of such Access Gates.

“Applicable Law” means the statutes, public laws and ordinances in effect at the time a provision of the Restrictions is applied, and pertaining to the subject matter of the Restriction.

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“Architectural Committee,” “AC” means the committee created pursuant to this Declaration. As provided in Article 7.

“Articles” means the Articles of Incorporation of the Association, filed in the Office of the Secretary of State of Texas, as the same may be amended from time to time.

“Assessment” or “Assessments” means assessments imposed by the Association under this Declaration.

“Assessment Unit” has the meaning set forth in Section 6.7 2.

“Association” means La Ventana Ranch Owners’ Association, Inc., a Texas non-profit corporation.

“Board” means the Board of Directors of the Association.

“Bulk Rate Contract” or “Bulk Rate Contracts” means one or more contracts which are entered into by the Association for the provision of utility services or other services of any kind or nature to the Lots.

“Bylaws” means the Bylaws of the Association. The Bylaws may be amended from time to time by the Board as provided in the Bylaws.

“Common Area” means any property and facilities that the Association owns or in which it otherwise holds rights or obligations, including any property or facilities conveyed by the previous Declarants as Common Area in accordance with this declaration.

“Community Manual” means the community manual, which may be initially adopted and recorded by a Majority of the Board as part of the initial project documentation for the benefit of the Association and the Property. The Community Manual may include the Bylaws, Rules and Regulations and other policies governing the Association. The Community Manual may be amended or supplemented, from time to time, by the Board.

“Equestrian Activity” means activity of any kind involving horses, including but not limited to riding, training, boarding, feeding, cleaning, caring for, jumping, breaking, stabling, grazing, and roping. Limitations on Equestrian Activity are contained in section 1.29 through 1.31 of this Declaration.

“Equestrian Lot(s)” means (i) Corral Lots E1 through E6R and E8 through E10,Covered Wagon Way E401 through E407; Block ___________________; (ii) vacate and re-plat of Lots 26 and 27 to 26R, Block ___________________; (iii) vacate and re-plat of Ranchers Club - Lots 28 and 29 to 28R, Block _________________and re-plat of Lot 11 to 11R; (iv) Lots 301 through 307 and , Block ____________________; (v) Preserve Lots P11, P12, P24, P27, P28, P29, P31, P32, P33, P37 and P38, Block ___________________; (vi) Lone Spur Lots 301 through 307, Block ______; and (vii) , Block _______, Preserve at La Ventana, Phase 1, a subdivision according to the map or plat recorded in Volume 11, Page 290, of the Plat Records of Hays County, Texas, as well as any other Lots so designated by the Board of Directors (but only

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after the Board receives written approval of the Owner(s) of all Lots that abut and/or adjoin the Lot that desires to be designated as an Equestrian Lot), whether now or in the future, in the Property. Equestrian Activity may only take place on “Equestrian Lots,” “ the Perimeter Path,” and/or the “Front Fields,” and only as defined herein.

“Front Fields” means that portion (approximately 109 acres) of the Common Area located on the northern most portion of the Property.

“Guest House” means any Improvements located on a Lot which are smaller than the Main House and accommodates people on a temporary basis.

“Improvement” means all physical enhancements and alterations to the Property, including but not limited to every structure and all appurtenances of every type and kind, including but not limited to any buildings, tree houses, tennis courts, sport courts, swimming pools, garages, driveways, parking areas, sidewalks, fences, gates, screening walls, retaining walls, patios, decks, porches, mailboxes, signs, antennae, pumps, wells, tanks, reservoirs, aerials, towers, satellite dishes, wind generators, solar collectors, and other facilities used in connection with water or sewer.

“Lot” means any portion of the Property designated by the Board or as shown as a subdivided Lot on a Plat other than Common Area.

“Main House” means any Improvements on a Lot which constitute and serve as the primary single family residence.

“Majority” means more than half.

“Manager” has the meaning set forth in this declaration.

“Members” means every person or entity that holds membership privileges in the Association.

“Mortgage” or “Mortgages” means any mortgage(s) or deed(s) of trust securing indebtedness and covering any Lot.

“Mortgagee” or “Mortgagees” means the holder(s) of any Mortgage(s).

“Owner” means the person(s), entity or entities, holding all or a portion of the fee simple interest in any Lot, but does not include the Mortgagee under a Mortgage prior to its acquisition of fee simple interest in such Lot pursuant to foreclosure of the lien of its Mortgage.

“Perimeter Path” means that approximate twenty-five foot (25’) strip of the Common Area designated as an equestrian trail by the Board and which substantially borders the perimeter of the Property, not including that portion of the Property platted as La Ventana West.

“Plat” means a Recorded subdivision plat of any portion of the Property and any amendments thereto.

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“Pond” means any tank, pond, reservoir, or body of water located on the Common Area.

“Private Roads” means the roadways located within the Property. The Private Roads shall be used for vehicular and pedestrian ingress and egress to and from the Lots and are hereby designated as Common Area. The Private Roads will be maintained by the Association in good condition and repair, as determined from time to time by the Board, in accordance with Applicable Law.

“Property” means that certain real property located in Hays County, Texas, described on Exhibit “A” attached hereto and incorporated herein by reference, subject to such additions thereto and deletions therefrom as may be made pursuant to this Declaration.

“Record, Recording, Recordation and Recorded” means recorded or to be recorded in the Official Public Records of Hays County, Texas.

“Resident” means an occupant or tenant of a Lot, regardless of whether the person owns the Lot.

“Restrictions” means the restrictions, covenants, and conditions contained in this Declaration, Bylaws, Community Manual, Rules and Regulations, or in any other rules and regulations promulgated by the Association pursuant to this Declaration, as adopted and amended from time to time. See Table 1 for a summary of the Restrictions.

“Rules and Regulations” means any instrument, however denominated, which may be adopted by the Board as part of the Community Manual for the regulation and management of the Property or the Common Area, including any amendments to those instruments.

“The Preserve at La Ventana Phase Three” or “Preserve Phase III” means that certain real property located in Hays County, Texas, described on Exhibit “A” as Tract Six, attached hereto and incorporated herein by reference, subject to such additions thereto and deletions therefrom as may be made pursuant to Appendix “A” of this Declaration.

TABLE 1: RESTRICTIONSDeclaration (Recorded) Creates obligations that are binding upon the

Association and all present and future owners of Property.

Articles of Incorporation (Recorded)

Establishes the Association as a Texas nonprofit corporation.

Bylaws (Recorded) Governs the Association’s internal affairs, such as elections, meetings, etc.

Community Manual (Recorded) Establishes Rules and Regulations and policies governing the Association.

Rules and Regulations (if adopted, Recorded)

Regulates the use of property, activities, and conduct within the Property or the Common Area.

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Board Resolutions (adopted by the Board of the Association)

Establishes rules, policies, and procedures for the Property, Owners and Association.

ARTICLE 2GENERAL AND USE RESTRICTIONS

All of the Property shall be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the following limitations and restrictions:

ARTICLE 1

ARTICLE 2

2.1 General .

2.1.1 Conditions and Restrictions . All Lots within the Property will be owned, held, encumbered, leased, used, occupied, and enjoyed subject to the Restrictions.

2.1.2 Ordinances . Ordinances and requirements imposed by local governmental authorities are applicable to all Lots within the Property. Compliance with the Restrictions is not a substitute for compliance with Applicable Law. Please be advised that the Restrictions do not purport to list or describe each restriction which may be applicable to a Lot located within the Property. Each Owner is advised to review all ordinances, requirements, regulations, and encumbrances affecting the use and improvement of their Lot prior to submitting plans to the ACC for approval. Furthermore, approval by the ACC should not be construed by the Owner that any Improvement complies with the terms and provisions of any ordinances, requirements, regulations or encumbrances which may affect the Owner’s Lot. Certain encumbrances may benefit parties whose interests are not addressed by the ACC.

2.2 Single-Family Residential Use . The Lots shall be used solely for private single family residential purposes. No professional, business, or commercial activity to which the general public is invited shall be conducted on any Lot, except an Owner or Resident may conduct business activities within a residence so long as: (i) such activity complies with all Applicable Law; (ii) the business activity is conducted without the employment of persons other than the residents of the home constructed on the Lot; (iii) the business activity does not involve customers, contractors, clients, visiting the residence such that it constitutes a nuisance or annoyance, or the general public visiting the residence; (iv) the existence or operation of the business activity is not apparent or detectable by sight, i.e., no sign may be erected advertising the business on any Lot, sound, or smell from outside the residence; (v) the business activity does not involve door-to-door solicitation of residents within the Property; (vi) the business does not, in the Board’s judgment, generate a level of vehicular or pedestrian traffic or a number of vehicles parked within the Property which is noticeably greater than that which is typical of residences in which no business activity is being conducted; (vii) the business activity is consistent with the residential

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character of the Property and does not constitute a nuisance, or a hazardous or offensive use, or threaten the security or safety of other residents of the Property as may be determined in the sole discretion of the Board; and (viii) the business does not require the installation of any machinery other than that customary to normal household operations. In addition, for the purpose of obtaining any business or commercial license, neither the residence nor Lot will be considered open to the public. The terms “business” and “trade”, as used in this provision, shall be construed to have their ordinary, generally accepted meanings and shall include, without limitation, any occupation, work, or activity undertaken on an ongoing basis which involves the provision of goods or services to persons other than the provider’s family and for which the provider receives a fee, compensation, or other form of consideration, regardless of whether: (a) such activity is engaged in full or part-time; (b) such activity is intended to or does generate a profit; or (c) a license is required. Leasing of an entire residence, to include guest house, for six (6) months or more shall not be considered a business or trade within the meaning of this subsection.

2.3 Subdividing . No Lot shall be further divided or subdivided, nor may any easements or other interests therein less than the whole be conveyed by the Owner thereof without the prior written approval of the Board.

2.4 Hazardous Activities . No activities may be conducted on or within the Property and no Improvements may be constructed on or within any portion of the Property which, in the opinion of the Board (and as established by written Rules & Regulations or a Board Resolution, and as approved in writing by a majority of the Board), are or might be unsafe or hazardous to any person or property. Without limiting the generality of the foregoing, no firearms may be discharged upon any portion of the Property, no fireworks may be discharged, and no open fires may be lighted or permitted except within safe and well-designed fireplaces/firepits or in contained barbecue units while attended and in use for cooking purposes . Notwithstanding the foregoing, campfires and picnic fires in the portion of the Common Areas designated for such use by the Board is permitted. No portion of the Property may be used for hunting. Additionally, no portion of the Property may be used for the takeoff, storage, or landing of aircraft (including, without limitation, helicopters) except for medical emergencies. Use of unlicensed contractors on any Lot or the Property is considered a hazardous activity, and creates an unsafe/ hazardous condition. A fine of up to $5,000.00, may be levied for the use of an unlicensed contractor(s) on any Lot or the property. In addition, any Owner will be required to pay all damages, attorney’s fees, and costs of court incurred by any other Owner incurred or suffered as a result of the Owner’s use of an unlicensed contractor(s).

2.5 Mining and Drilling . No portion of the Property or the Common Area may be used for the purpose of mining, quarrying, drilling, boring, or exploring for or removing oil, gas, or other hydrocarbons, minerals of any kind, rocks, stones, sand, gravel, aggregate, or earth. This provision will not be construed to prevent the excavation of rocks, stones, sand, gravel, aggregate, or earth or the storage of such material for use as fill provided that such activities are conducted in conjunction with the construction of Improvements and/or the development of the Property and are otherwise approved in advance by the Board.

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All water wells must also be approved in advance by the Board and any applicable regulatory authority. No representation or warranty, express or implied, is made as to the ownership of the minerals, resources and groundwater or any portion thereof or any interest therein.

2.6 Noise . No noise shall be permitted to exist or operate upon any portion of the Property so as to be offensive or detrimental to any other portion of the Property or to its Residents. No construction activity by any contractors shall occur before 7:00 A.M. or after 7:00 P.M.

2.7 Animals - Household Pets . No animals, including pigs, hogs, swine, poultry, fowl, wild animals, cattle, sheep, goats, or any other type of animal not considered to be a domestic household pet within the ordinary meaning and interpretation of such words may be kept, maintained, or cared for on or within the Property (as used in this paragraph, the term “domestic household pet” shall not mean or include non-traditional pets such pot-bellied pigs, exotic snakes or lizards, monkeys, chickens or other exotic animals). The Board may determine, in its sole discretion, whether a particular pet is a domestic household pet within the ordinary meaning and interpretation of such words. Notwithstanding the foregoing, the Association may determine to own and manage (subject to other applicable provisions of this Declaration), longhorn cattle, llamas and other livestock and wildlife on the front field. no domestic pets will be allowed on the Property other than within the Owner’s residence, or the fenced yard space associated therewith, unless confined to a leash, except in the Front Fields which are a “leash free” zone for pets; provided that the Owner of the pet(s) is present to supervise the pet(s) and the Owner’s pet(s) are trained and obedient. The Board may adopt additional requirements for pet access to the Common Area. All pet waste will be removed and appropriately disposed of by the owner of the pet. All pets must be registered, licensed, and inoculated as required by Applicable Law.. Notwithstanding anything contained in this Declaration to the contrary, Equestrian Lots shall each be allowed to maintain the full time boarding of up to two (2) equines, however no animal may be stabled, maintained, kept, cared for, or boarded for hire or remuneration on the Property, and no kennels or breeding operation will be allowed. No equine manure shall be allowed to accumulate on the Equestrian Lots. Equine manure shall be disposed of regularly and kept at a minimum at all times. In no event shall Pit bulls (or other vicious or dangerous animals as determined by the Board) be allowed on the Property. No deer feeders are allowed.

2.8 Rubbish and Debris . As determined by the Board, no rubbish or debris of any kind may be placed or permitted to accumulate on or within the Property, and no odors will be permitted to arise therefrom so as to render all or any portion of the Property unsanitary, unsightly, offensive, or detrimental to any other property or Residents. Refuse, garbage, and trash must be kept at all times in covered containers, and such containers must be kept within enclosed structures or appropriately kept from view. The Association shall contract with an independent disposal service to collect all garbage or other wastes weekly, and yard clippings twice annually. Other than the designed pick-ups, owners are responsible for taking yard clipping and yard waste to the dump. No burn-piles are allowed on any Lot.

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2.9 Maintenance . The Owner(s) of each Lot shall have the duty and responsibility, at their sole cost and expense, to keep their Lot and all Improvements thereon in good condition and repair and in a well-maintained, safe, clean, and attractive condition at all times. The Board, in its sole discretion, shall determine whether a violation of the maintenance obligations set forth in this Declaration has occurred. Such maintenance includes, but is not limited to the following, which shall be performed in a timely manner, as determined by the Board, in its sole discretion:

(i) Prompt removal of all litter, trash, refuse, and wastes.

(ii) Lawn mowing.

(iii) Tree and shrub pruning.

(iv) Watering (within the drought guidelines as set by the water provider).

(v) Keeping exterior lighting and mechanical facilities in working order.

(vi) Keeping lawn and garden areas alive, free of weeds, and attractive.

(vii) Keeping planting beds free of turf grass.

(viii) Keeping Creek Beds and banks free of weeds and debris.

(ix) Keeping sidewalks and driveways in good repair.

(x) Complying with Applicable Law.

(xi) Repainting/Restaining of Improvements.

(xii) Repair of exterior damage, and wear and tear to Improvements.

(xiii) Lot maintenance – mowing/bushhogging of open lots is required every six months to aid in fire prevention. If lot owner fails to maintain their lot, the Association may enter the lot and maintain, at the owner’s expense. Lot maintenance will be billed to individual homeowners and constitute dues.

(xiv) Maintaining fences in good repair. Rotten wood must be removed and/or repaired, or fence removed.

2.10 Street Landscape Area-Owner’s Obligation to Maintain Landscaping. Each Owner will be responsible, at such Owner’s sole cost and expense, for maintaining mowing, replacing, pruning, and irrigating the landscaping between the boundary of such Owner’s Lot and the adjacent right-of-

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way or street (the “ST Landscape Area”) unless the responsibility for maintaining the ST Landscape Area is performed by the Association.

2.11 Signs . Unless otherwise prohibited by Applicable Law, no sign of any kind may be displayed to the public view on any Lot without the prior written approval of the Board, except for:

(i) signs which are expressly permitted pursuant to the Rules and Regulations;

(ii) one (1) temporary “For Sale” sign placed on the Lot. The sign must be professionally made and shall be limited to a maximum face area of four (4) square feet on each visible side and, if free standing, is mounted on a single or frame post. The overall height of the sign from the finished grade of the Lot at the spot where the sign is located may not exceed four (4) feet. The sign must be removed within two (2) business days following the sale of the Lot;

(iii) political signs may be erected provided the sign: (a) is erected no earlier than the 90th day before the date of the election to which the sign relates; (b) is removed no later than the 10 th day after the date of the election to which the sign relates; and (c) is ground-mounted. Only one sign may be erected for each candidate or ballot item. In addition, signs which include any of the components or characteristics described in Section 202.009(c) of the Texas Property Code are prohibited;

(iv) a religious item on the entry door or door frame of a residence (which may not extend beyond the outer edge of the door frame), provided that the size of the item(s), individually or in combination with other religious items on the entry door or door frame of the residence, does not exceed twenty-five (25) square inches;

(v) a maximum of two (2) school or youth affiliated signs shall be permitted, provided the sign(s): (a) is located in the landscaping bed of the front yard and blends in with the existing landscaping; (b) is no larger than 36” x 42” and does not exceed five feet (5’) in height above natural ground; (c) is constructed of wood, plastic or metal and are not flags or banners, as determined in the sole and absolute discretion of the Board; (d) is kept in good condition and repair, as determined in the sole and absolute discretion of the Board; (e) does not cause embarrassment, discomfort and/or annoyance to other Owners, as determined in the sole and absolute discretion of the Board; and (f) does not contain any telephone numbers or commercial advertisements;

(vi) permits as may be required by legal proceedings;

(vii) permits as may be required by any governmental entity; and

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(viii) a “no soliciting” and a “security warning” sign near or on the front door to their residence, provided, that the sign may not exceed twenty-five (25) square inches.

(ix)

2.12 Temporary Structures . No shack, mobile home, trailer, or other temporary building, Improvement, or structure shall be placed upon the Property without the prior written approval of the ACC.

2.13 Unsightly Articles . No article deemed to be unsightly by the Board will be permitted to remain on any Lot so as to be visible from adjoining property or from public or private thoroughfares. Without limiting the generality of the foregoing, trailers, graders, trucks other than pickups, boats, tractors, wagons, buses, motorcycles, motor scooters, all-terrain vehicles and garden maintenance equipment shall be kept at all times except when in actual use, in enclosed structures or kept from view and no repair or maintenance work shall be done on any of the foregoing, or on any automobile (other than minor emergency repairs), except in enclosed garages or other structures. Service areas, storage areas, compost piles and facilities for hanging, drying or airing clothing or household fabrics shall be appropriately kept from view, and no lumber, grass, plant waste, shrub or tree clippings, metals, bulk materials, scrap, refuse or trash shall be kept, stored, or allowed to accumulate on any portion of the Property except within enclosed structures or appropriately kept from view. No racing vehicles or other vehicles (including, without limitation, motorcycles or motor scooters) which are inoperable or do not have a current license tag shall be permitted to remain visible on any Lot or to be parked on any roadway within the Property or Common Area.

2.14 Mobile Homes, Travel Trailers, Cattle Trailers, and Recreational Vehicles. No mobile homes, travel trailers, cattle trailers, or recreational vehicles shall be parked or placed on any street right of way, Lot, or used as a residence, either temporary or permanent, at any time. However, such vehicles may be parked temporarily for a period not to exceed forty-eight (48) consecutive hours.

2.15 Basketball Goals; Permanent and Portable . Permanent basketball goals are permitted on a Lot, but must comply with the setback requirements herein. Permanent basketball goals are not permitted in any street right-of-way. The basketball goal backboard must be perpendicular to the street and permanently installed in the ground. Portable basketball goals are permitted but must be stored in the rear of the Lot or inside the garage from sundown to sunrise. Portable basketball goals are not permitted in any street right-of-way. Basketball goals must be properly maintained and painted, with the net in good repair.

2.16 Compliance with Restrictions . Each Owner, his or her family, Residents of a Lot, tenants, and the guests, invitees, and licensees of the preceding shall comply strictly with the provisions of the Restrictions as the same may be amended from time to time. Failure to comply with any of the Restrictions

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shall constitute a violation of the Restrictions and may result in a fine against the Owner in accordance this Declaration, and shall give rise to a cause of action to recover sums due for damages or injunctive relief, or both, maintainable by the Board on behalf of the Association, the ACC, or by an aggrieved Owner. The result of every act or omission that violates any provision of the Restrictions is a nuisance, and any remedy allowed by law against a nuisance, either public or private, is applicable against the violation. Without limiting any rights or powers of the Association, the Board may (but shall not be obligated to) remedy or attempt to remedy any violation of any of the provisions of the Restrictions, and the Owner whose violation has been so remedied shall be personally liable to the Association for all costs and expenses of effecting (or attempting to effect) such remedy. If such Owner fails to pay such costs and expenses upon demand by the Association, such costs and expenses (plus interest from the date of demand until paid at the maximum lawful rate, or if there is no such maximum lawful rate, at the rate of one and one-half percent (1-1/2%) per month) shall be assessed against and chargeable to the Owner’s Lot(s). Any such amounts assessed and chargeable against a Lot shall be secured by the liens reserved in this Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner’s Lot(s). Each such Owner shall release and hold harmless the Association and its officers, directors, employees and agents from any cost, loss, damage, expense, liability, claim or cause of action incurred or that may arise by reason of the Association’s acts or activities under this Declaration (including any cost, loss, damage, expense, liability, claim or cause of action arising out of the Association’s negligence in connection therewith), except for such cost, loss, damage, expense, liability, claim or cause of action arising by reason of the Association’s gross negligence or willful misconduct. “Gross negligence” as used herein does not include simple negligence, contributory negligence or similar negligence short of actual gross negligence.

2.17 Liability of Owners for Damage to Common Area . No Owner shall in any way alter, modify, add to or otherwise perform any work upon the Common Area without the prior written approval of the Board. Each Owner shall be liable to the Association for any and all damages to: (i) the Common Area and any Improvements constructed thereon; or (ii) any Improvements constructed on any Lot, the maintenance of which has been assumed by the Association, which damages were caused by the neglect, misuse, or negligence of such Owner or Owner’s family, or by any tenant or other Resident of such Owner’s Lot, or any guest or invitee of such Owner or Resident. The full cost of all repairs of such damage shall be an Individual Assessment against such Owner’s Lot, secured by a lien against such Owner’s Lot and collectable in the same manner as provided in Section 6.10 of this Declaration.

2.18 No Warranty of Enforceability . The Board make no warranty or representation as to the present or future validity or enforceability of the Restrictions. Any Owner acquiring a Lot in reliance on one or more of the Restrictions shall assume all risks of the validity and enforceability thereof and, by acquiring the Lot, agrees to hold the Board harmless therefrom.

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2.19 Rentals . Nothing in this Declaration shall prevent the rental of any Lot and the Improvements thereon by the Owner thereof for residential purposes; provided that all rentals must be for terms of at least six (6) months and no lease may allow occupancy of any Lot (inclusive of the Main House and Guest House) of more than four (4) adults at any one time. All leases shall be in writing. The Owner must provide to its lessee copies of the Restrictions. Notice of any lease, together with such additional information as may be required by the Board (including a copy of the lease agreement), will be remitted to the Association by the Owner on or before the expiration of ten (10) days after the effective date of the lease. The Association management company must be notified in writing of the rental and provided contact information for the renters.

2.20 Equestrian Activity . Owners of Equestrian Lots are allowed to board up to two (2) horses full time on each Equestrian Lot. A stable must be constructed on an Equestrian Lot if horses are boarded thereon. The stable shall conform to construction standards set forth by the ACC. Such stable shall be located on an Equestrian Lot with the following setback requirements and size requirements:

(i) Any stable shall be constructed parallel to and six feet (6’) from the Corral Fence and shall be located at the center point of the rear Lot line of each Equestrian Lot. No part of a stable shall exceed a distance greater than thirty-six feet (36’) from the Corral Fence. Stables on Equestrian Lots which do not back up to the central Corral must receive approval from the ACC before commencement of construction.

(ii) Each stable shall be a minimum of five hundred seventy-six (576) square feet but shall not be larger than nine hundred and three (903) square feet. Additionally, each stable shall have a minimum height of sixteen feet (16’) but shall not be taller than twenty-two feet (22’) from the stable floor to the highest point in the stable roof.

(iii) Owners of Equestrian Lots may park one (1) horse trailer next to each stable provided such parking space is covered.

(iv) Each stable must be clean, sanitary, and reasonably free of refuse, insects and equine manure at all times. Owners of Equestrian Lots shall control and minimize insects and flies resulting from Equestrian Activity.

2.21 Designated Equestrian Riding Areas . Horses may be ridden only in the following authorized areas:

(i) Perimeter Path (equestrian trail);

(ii) Front Fields;

(iii) Designated equine right-of-ways and crossovers;

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(iv) Corral; and

(v) Personally Owned Equestrian Lots.

2.22 Central Propane Gas System .

2.22.1 Gas System . The Southern Union Gas Company (“SUG”) and original developer of the Property entered into that certain Propane System Installation Agreement (“Propane Agreement”) dated July 2, 1999 (including any amendments thereto) to provide propane gas from a centrally installed propane gas system (the “Gas System”). The Propane Agreement applies to [CONFIRM] Lots through , Block , according to the plat or map recorded as Document No. , Official Public Records of Hays County, Texas (the “Propane Lots”).

2.22.2 Propane Use Requirement . The Main Houses on Propane Lots must install or use only gas-fired water heaters and furnaces (“Propane Appliances”). Additionally, all Owners of Propane Lots shall install gas hook-ups for ranges that are installed in all Main Houses.

ARTICLE 3 MINIMUM CONSTRUCTION STANDARDS AND REQUIREMENTS

3.1 General.3.1.1 The purpose of this Article is to ensure that all Owners understand and

conform to minimum standards for construction of Improvements on their properties so that La Ventana can remain a community that is safe, secure, unique, aesthetically pleasing, and of high quality where people want to live and enjoy life.

3.1.2 Unless explicitly stated in this Article, construction of Improvements to any lot or property in La Ventana must be approved by the Architectural Committee (AC) in advance of commencement of works in accordance with Article 7 of this Declaration. This includes works performed by Owners, contractors on behalf of Owners, works performed in La Ventana common areas authorized by the Board of Directors. This Article does not pertain to, and Owners are not required to obtain AC approval for, periodic maintenance or repair of existing, previously approved Improvements. In addition, this Article is not binding to previously installed Improvements or previously approved Applications.

3.1.3 No Improvements shall be constructed on the Front Fields to the east of La Ventana without the approval of the Board and a majority of the voting members of the Ranch Owners Association.

3.1.4 The Owner is responsible for:

(i) Ensuring that all Improvements to be placed on his/her property comply with the International Residential Code (IRC) and the Applicable Laws, codes and regulations of the State of Texas and Hays County, and that those Improvements conform to the requirements in this Article 3.

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(ii) Submitting and receiving approval of an Application for Improvement for the planned works from the Architectural Committee (AC) in advance of construction.

(iii) Obtaining all necessary permits and receiving underground clearance from the appropriate utility companies before beginning construction.

(iv) Ensuring that actions taken during construction are consistent with the approved Application for Improvement. Any changes in scope from the approved Application must be submitted to the AC for review in advance of commencement of the changes.

(v) Posting the street address number for the Main House in a manner and location that facilitates construction deliveries during construction.

(vi) Maintaining and repairing, if necessary, all Improvements on their Lot.

3.1.5 The Architectural Committee may only approve an Application for Improvement which fully complies with requirements explicitly stated in this Article. Improvements which are not included in this Article will be evaluated by the AC in good faith, considering the principles stated in Article 3.1.1. All variations from the standards in this Article must be approved by 80% of the members of the Board in accordance with Article 7 of this Declaration. The AC may conduct site visits during construction to ensure that construction is proceeding in accordance with the approved Application for Improvement. Timing of these visits will be coordinated with the Owner.

3.2 Construction Standards. All construction must conform to the Application for Improvement approved in writing by the AC. Changes in scope which differ from the approved Application for Improvement must be submitted to the AC for review and approval in advance of construction. Plans for major excavation or construction should be certified by an appropriate licensed engineer or architect to ensure safe construction. Once approved, Owners should diligently work to complete construction within one year. Additional time beyond one year must be approved by the AC.

3.2.1 Construction in Place. All main structures shall be constructed in place on the Lot. Pre-constructed, prefabricated, or existing buildings or structures may not be moved onto any portion of the Property unless approved in the Application for Improvement.

3.2.2 Compliance with Setbacks.

3.2.2.1 The intent of establishing minimum setbacks on an Owner’s Lot is to ensure the aesthetic appeal of La Ventana, to enable privacy for both the Owner and affected neighbors, and to preserve existing natural

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trees, vegetation, and topography to the greatest extent possible and practicable.

3.2.2.2 No building shall be located nearer than fifty feet (50’) from the front line, nearer than fifteen feet (15’) from any side Lot line, or nearer than thirty feet (30’) from any rear Lot line.

3.2.2.3 No Improvements may be located on any utility easement without prior written approval of Hays County and the affected utility provider.

3.2.2.4 In placing any Improvement on the property, Owners should consider and respect lines of sight from neighboring properties and Lots. The AC may prevent the construction of a proposed Improvement based upon the effect it will have upon the view from another Lot or the Subdivision as a whole.

3.2.2.5 The AC shall be entitled to review and waive the setback requirements for any Lot, upon notification of the Board, for which compliance with the foregoing setback requirements might be difficult or impossible due to size of the Lot, topography, or existing vegetation.

3.2.3 Height of Improvements. No Primary Residence constructed or placed on any Lot shall exceed thirty-five feet (35’) in height, measured from the highest point of the foundation to the highest point of the ridgeline of the roof of the proposed Improvement. In no case shall any Improvement exceed the height of the top ridgeline of the Primary Residence.

3.2.4 Construction Materials. Only new materials shall be utilized in constructing an Improvement on a Lot, unless stipulated and approved in the Application for Improvement in accordance with the terms and provisions of Article 7 of this Declaration. The AC has the right to allow new construction material solutions as they are developed.

3.2.4.1 Masonry Construction. At least eighty percent (80%) of all exterior vertical walls (excluding trim, fascia, doors, and windows) of the Primary Residence and Guest House must be constructed using traditional masonry products including, but not limited to, limestone, natural stone, and/or stucco.  The remaining 20% of the exterior may be constructed using materials such as wood, other approved masonry products, or similar synthetic building materials.

3.2.4.2 Window Materials. All windows on all Improvements shall utilize only clear or lightly tinted, non-reflective glass.

3.2.4.3 Roofing. Roofs of any Improvement must be constructed using non-reflective metallic roofing material with low gloss or matte finishes, clay tiles, or composition/synthetic shingles. Corrugated metal roofs, wooden shingles, or shakes are not permitted.

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3.2.4.4 Paint. Exterior colors of any structure shall be of neutral or natural tones, or a reasonable combination thereof. Colors or combinations of colors that the majority of the homeowners might find either offensive or inappropriate (e.g., fluorescent, neon, or bright primary colors) are not permitted. Paint swatches and exterior color concept for walls, trim, and shutters must be presented to the AC for approval.3.2.5 Drainage.

3.2.5.1 There shall be no interference with the established drainage patterns of the Property, including the Lots, unless adequate provision is made for proper runoff. Unless adequate mitigation measures are implemented first and adjacent neighbors agree, Owners are not permitted to make Improvements that drain onto or affect the drainage of adjacent properties.

3.2.5.2 All final drainage structures under private driveways shall be constructed of concrete or rock and have a net drainage opening area of sufficient size to permit the free flow of water without backwater. Metal drainage structures or culverts under driveways are permitted only during construction.

3.2.5.3 No obstructions of any type, including but not limited to fences, dams, and concrete walkways, shall be placed in, on, or across any Creek Bed adjoining or running through any Lot, except by the Association.

3.2.6 Tree Preservation.

3.2.6.1 La Ventana seeks to preserve the beauty of the neighborhood by protecting the existing trees and vegetation on the Property as much as possible. Homeowners desiring to construct any Improvements must take into consideration the trees on the Lot and examine ways to preserve and protect them.

3.2.6.2 Homeowners wishing to make an Improvement to their Lot must submit a tree survey with their Application for Improvement showing all desirable trees (i.e., local deciduous trees like oak and elm, etc.). A desirable tree is any deciduous tree with a base trunk diameter twelve inches (12”) or greater, measured at 4.5’ DBH (Diameter at breast height) or as per Guide for Plant Appraisals, 9th ed.  Undesirable trees (e.g., cedar, hackberry, chinaberry, etc.) may be removed by the Owner at his/her discretion. Some undesirable trees may be retained to aide in screening of the property, if desired.

3.2.6.3 Homeowners must attempt to place their Improvements in a manner not to disrupt or destroy desirable trees. If destruction of desirable trees cannot be avoided, Owners must submit a mitigation plan which includes, as a minimum a replanting schedule which over time will aide in the restoration of the beauty impacted by the construction. A minimum fifty percent (50%) of all desirable trees removed must be remediated. Homeowners can easily calculate the required inches needed for mitigation

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by adding up the total number of desirable inches to be removed and dividing by 2 (e.g., 50” desirable inches removed / 2 = 25” required for mitigation).  Alternatively, if the Owner does not want to plant replacement trees to compensate for those trees destroyed by the Improvement, they may pay the ROA a dollar amount equal to $200 per inch required for remediation to go into the community beautification budget for use on common areas around the community.

3.2.6.4 The AC may, in its own discretion, grant exceptions or a reduction in the above requirements while considering sites with extraordinary desirable trees, challenging desirable tree locations, heavily wooded lots, and/or existing site conditions making heavy tree removal unavoidable. The AC must approve the destruction/removal of all desirable trees as described in Article 3.2.6.2.

3.3 Main Improvements.

3.3.1 Primary Residence. No more than one (1) Main House shall be constructed on any Lot. The Main House must have an enclosed living space of at least twenty-nine hundred (2,900) square feet, exclusive of open and closed porches, decks, terraces, patios, balconies, driveways, and garages.

3.3.2 Guest House/Casita/Office. No more than one (1) Guest House/Casita/Office external to the Primary Residence shall be constructed on any Lot. Materials and roofing should closely match those used in the Primary Residence. The structure must have an enclosed living space of at least four hundred (400) square feet, not more than fifteen hundred (1,500) square feet and may be no higher than one story. Guest houses and Casitas are intended for temporary use and may not be inhabited permanently unless approved by the Board.

3.3.3 Garages. Each Primary Residence shall have garage space sufficient to safely park at least two (2) vehicles. All garages shall have functional automatic garage door openers installed and be maintained for the parking of automobiles. No garage may be permanently enclosed or otherwise used for habitation. The garage door may not directly face the street.

3.3.4 Driveways/Sidewalks/Patios/Firepits.

3.3.4.1 Driveways may be constructed of concrete, asphalt, pavers, or masonry. Additional parking pads, if required, should be constructed of the same materials as the driveway.

3.3.4.2 Sidewalks may be constructed of concrete, pavers, stone, or gravel.

3.3.4.3 Patios may be constructed of concrete, pavers, or stone in the backyard in a manner to minimize disruption to adjoining neighbors.

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3.3.4.4 Firepits may be constructed in the backyard. The pit must be constructed of stone and be at least 25 feet from structures or combustible material. The fuel area may not exceed three feet (3’) in diameter by two feet (2’) in height. Firefighting equipment (e.g., garden hose or fire extinguisher) must be readily available whenever the pit is in use.

3.3.5 Storage Buildings and Workshops. Owners may construct one (1) permanent storage building or workshop within the property. The interior surface area should be no more than one thousand (1,000) square feet and the height of the storage building, measured from the top of the slab, should be no more than twenty (20) feet. The exterior of the storage building may be constructed of stone or fire-retardant wood and should match color and/or roofing of the Primary Residence; sheet metal or corrugated metal structures are not permitted. No storage building may be used for habitation. Storage buildings and workshops should not be visible from public roads.

3.3.6 Corrals and Stables. Owners of Equestrian Lots may board two (2) horses full time. Owners must erect a fenced-in corral to restrain and control horses on their Property. A stable must be constructed if horses are boarded thereon. The exact position of the stable shall be agreed to jointly by the Owner and the AC. In no case may a stable be constructed in the front yard of the Property. Each stable shall not be larger than nine hundred (900) square feet. Each stable must be kept clean, sanitary, and reasonably free of refuse, insects, and horse manure at all times.

3.3.7 Recreational Facilities.

3.3.7.1 Swimming Pools & Hot Tubs. Due to the water situation on La Ventana, swimming pools and hot tubs must be approved specifically by the AC. The AC will review the size, location, any waterfall concepts, lighting, and pool machinery and may approve, approve with conditions, or disapprove the pool or hot tub based on water restrictions which may exist on La Ventana or other matters based on their review. Any swimming pool or hot tub constructed on a Lot must be enclosed with lockable access by a fence or other enclosure device. Pool equipment should be concealed from public view. Above-ground or large, temporary swimming pools (other than kiddy pools) are not permitted. Portable hot tubs must be properly sited and screened so as to minimize the visual impact on adjacent properties or public roads. Owners must contract with local water vendors for initial pool fill, for major remodel which causes more than 20% of the pool water to be replaced, or for periodic filling due to evaporation when the addition will be more than 4,000 gallons per month. All La Ventana Owners with pools must sign and submit to the AC the Letter of Commitment at Appendix C to abide by these requirements. Proof of outside water fill must be provided to the AC and on-file in the AC database. Notwithstanding these requirements, Owners are obligated to comply with all Applicable Laws regarding swimming pools and hot tubs. Owners must comply with ROA-stated watering policy during water restriction periods. Failure to comply may result in fines and/or additional penalties as determined by the La Ventana Board of Directors.

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3.3.7.2 Playscapes and Sport Courts. Playscapes and sport courts must be properly sited and screened so as to minimize the visual and audio impact on adjacent properties. Sport Courts may not be lighted or enclosed with netting. Tennis courts are not permitted.

3.3.8 Fences and Walls. All fences and walls shall comply with Applicable Law. Owners must maintain all fences and/or walls on their Lot in good condition.

3.3.8.1 Fences may be constructed in the back and side yards of the Primary Residence of wrought iron rods, split-rail or fire-retardant wood, and may not be higher than seven feet (7’). Owners should endeavor to maintain a consistent fencing product on their Property. Chain-link, barbed wire, metal cloth, agricultural fences, game fences, or artfully decorated fences are not permitted. Wrought iron fences should not have spikes on the top or should be capped to prevent injury to wildlife. Fences in the front yard are only permitted on Equestrian Lots. Roadside decorative fences, walls not higher than four feet (4’), and gates, which are designed to enhance the property, not conceal the home from view, act as a full enclosure to the front of the property, and comply with other guidelines concerning vehicle sightlines contained herein are permitted to be placed outside the utility easement but inside the front setback (50’).

3.3.8.2 Walls may be constructed of stone or fire-retardant wood and stone. Walls which surround the property completely and conceal the house from view are not permitted.

3.3.8.3 Fence posts or columns for walls must be placed in concrete footers or on concrete foundations.

3.3.9 Flag Poles. Owners may construct a flag pole in their front yard upon approval of the AC. The flag pole may not be higher than the ridge line of the Primary Residence and should be anchored in the ground with concrete and a concrete slab. Owners wishing to affix a flag pole to the front column of their house may do so without AC approval. Flag poles should not be affixed to any columns which extend into the streets in order to avoid obstructing traffic or mail carrier duties. In all cases, the U.S. flag should be retired at night unless it is covered with dedicated lighting.

3.3.10 Mailbox. Each Owner shall construct a mailbox at the end of the driveway or sidewalk on the public road to facilitate USPS mail delivery. The mailbox structure should be constructed of the same material as the Primary Residence.3.4 Conservation Measures.

3.4.1 Large Solar Energy Devices. Solar energy is an excellent source of renewable energy in Texas. Owners may, at their own discretion, install small solar devices to power individual yard lights or equipment. Owners wishing to install large solar energy devices as part of their initial construction or as part of a latter Improvement are encouraged to do so. Large Solar Energy Devices must be approved by the AC and must comply with the following:

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(i) If the Solar Energy Device is mounted on the roof of the Principal Residence located on the Owner’s Lot, then: (i) the Solar Energy Device may not extend higher than or beyond the roofline; (ii) the Solar Energy Device must conform to the slope of the roof and the top edge of the Solar Device must be parallel to the roofline; and (iii) the frame, support brackets, or visible piping or wiring associated with the Solar Energy Device must complement the color of the roof. Unless approved by the AC, roof-mounted solar energy systems will be installed in a manner to be concealed from public view.

(ii) If the Solar Energy Device will be located in a location on the Lot other than the roof of the Primary Residence, then the Device must be concealed from public view so as not to be seen by neighbors or from the street.

3.4.2 Large Rainwater Harvesting Systems. Rainwater harvesting is encouraged in La Ventana to preserve the scarce water available to the Community. Rain barrels not exceeding 100 gallons may be installed at the Owner’s discretion. Large rainwater harvesting systems should comply with the following conditions:

3.4.2.1 There is sufficient area on the Owner’s Lot to install the Rainwater Harvesting System.

3.4.2.2 The Rainwater Harvesting System should not be visible from the primary or adjoining streets, Common Areas, or neighbors. If the desired location is visible to streets, Common Areas, or neighbors, the Owner must describe actions he/she will take to conceal the system (i.e., walls, hedges, paint, etc.). In no case should the Rainwater Harvesting System be installed between the front of the house and the primary street so as to obscure the view of the home.

3.4.2.3 The Rainwater Harvesting System does not include any language or other content that is not typically displayed on such a device.

3.4.3 Landscaping, Irrigation, and Lighting. Landscaping is an important component of the aesthetic appeal of La Ventana. Owners should carefully consider the concept of landscaping they intend to use for their property to ensure it is conducive with the overall aesthetics of the Property. Grasses, shrubs, bushes, and trees should all be planned and placed to reinforce the appeal of La Ventana and minimize the use of scarce water resources. As part of their Application for Improvement, Owners should state the concept for Landscaping and Irrigation. Included should be the type of grass to be installed, kinds of plants being considered, and the kind(s) of irrigation systems which the Owner plans to install. In consideration of the fact that the Owner may not know exactly what he/she wants to do initially and recognizing the rights of the Owner in enhancing both the beauty and value of their home, the La Ventana ROA will not stipulate either landscaping or irrigation systems which an Owner must use. Rather, the Owner is encouraged to consider the following.

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3.4.3.1 Grasses. Owners should consider drought-resistant grasses which require less water to survive. Sod or turfs should only be installed close-in to the house and should not extend further than thirty (30) feet from the foundation of the Primary Residence. Sod and other non-drought resistant grasses may not be installed during the drought period of the year (May-September) and may only be installed after approval by the AC.

3.4.3.2 Trees, Shrubs, Bushes. Owners should consider the use of drought-resistant trees and bushes that are compatible with the local foliage. Shrubs and trees should not be planted in a way which obstruct sight lines at elevations between three feet (3’) and six feet (6’) above the surface of any street or roadway or permitted to remain on any corner Lot within the triangular area formed by the curb lines of such intersection streets and a line connecting such curb lines at points twenty-five feet (25’) from their intersection, or, in the case of a rounded corner, from the intersection of the curb lines as extended. The same sight line limitations shall apply on any Lot within ten feet (10’) of the intersection of a street curb line and the edge of a driveway or alley. No trees shall be permitted to remain within such distance of such intersections unless the foliage line is maintained at a height of more than six feet (6’) above ground level.

3.4.3.3 Garden Areas. Non-grassy garden areas around the house enhance the beauty and appeal of the home. Owners should maximize the use of mulches to reduce grass where appropriate and to retain water longer. Small vegetable gardens may be installed at the Owner’s discretion. Vegetable gardens may not be planted in the front of the home.

3.4.3.4 Xeriscaping and Natural Vegetation. Owners who desire to leave their property, or a majority of their property in a natural state, or to use desert foliage and materials to create a xeriscape, are encouraged to do so. Xeriscaping must comply with the following:

3.4.3.4.1 The Xeriscaping must be aesthetically compatible with other landscaping in the community as reasonably determined by the AC. For purposes of this Section, “aesthetically compatible” shall mean it is harmonious with already established turf and landscaping in the overall community, and/or the use of specific turf or plant materials will not result in damage to or cause deterioration of the turf or landscaping of an adjacent property Owner, resulting in a reduction of aesthetic appeal of the adjacent property Owner’s Lot.

3.4.3.4.2 No Owners shall install gravel, rocks, mulch, or cacti that in the aggregate encompass over thirty percent (30%) of the Owner’s front yard or fifty percent (50%) of the Owner’s back yard unless approved by the AC.

3.4.3.5 Yard Irrigation Systems. Owners are encouraged to utilize underground irrigation systems to water their yards in accordance with established ROA watering times. Drip systems for gardens minimize waste

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and should be strongly considered. Full yard irrigation systems are not permitted. Due to water restrictions in La Ventana, yard sprinkler systems are limited to no further than thirty feet (30’) from the Primary Residence. Owners must comply with ROA stated watering policy during water restriction periods. Failure to comply may result in fines and/or additional penalties as determined by the La Ventana Board of Directors.

3.4.3.6 Decorations and Lighting.

3.4.3.6.1 Large decorative sculptures, fountains, or other decorative embellishments must be approved by the AC.

3.4.3.6.2 Customary seasonal decorations for holidays are permitted without approval by the AC but must be removed within thirty (30) days of the applicable holiday.

3.4.3.6.3 Low light output (i.e., less than 1100 lumens—equivalent to 75W incandescent or 11W LED) outdoor landscape lighting fixtures may be placed so as to illuminate the yard of the applicable Lot and must not affect or reflect into surrounding residences or yards. Motion-activated security lighting may be used to deter intruders from entering the property as long as the lighting does not extend into neighboring Lots. No street lights (mercury vapor, sodium, or halogen light) shall be installed on any Lot or any common area which is visible from any street, unless otherwise approved by the Board. In order to promote a “dark skies” environment in La Ventana, Owners should turn off their non-solar lighting by 10:00 pm when at home; lighting may remain on during the Owner’s absence.

3.5 Utilities.

3.5.1 Underground Utility Lines. All utility lines running from the service provider to the Improvements must be buried and, if applicable, protected. Utility lines should be installed and inspected by licensed professionals. Temporary power or telephone lines incident to the construction of Improvements may be run above ground provided they are protected against unsafe environmental conditions. The Owner is responsible for all damage resulting from unsafe placement of utility lines.

3.5.2 Water. Water is provided in La Ventana from a privately-owned, centrally managed production and distribution system. Individual or private water wells are not permitted in La Ventana. Owners may elect to use a Rainwater Harvesting System to provide for their household water needs.

3.5.3 Propane Gas. All Propane Appliances installed in new homes shall be installed in accordance with the requirements of the Gas Services Division of the Texas Railroad Commission and all other applicable governmental requirements and regulations.

3.5.4 Septic Systems. Each septic system serving a Lot must be maintained in good condition and repair by the Owner of such Lot. Septic fields are subject to

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rules and regulations of the Texas Commission on Environmental Quality (the “TCEQ”) and Hays County. Owners must enter into a contract for periodic maintenance and inspection of the septic system with a maintenance company approved to provide such services by Hays County and/or the TCEQ. Alternatively, Owners may maintain the septic system themselves after taking the necessary training from Hays County. The Owner must present written certification by the inspecting authority that the septic system complies with applicable requirements to the AC prior to occupancy of the premises.

3.5.5 Antennas. The Association will have the right, but not the obligation, to erect an aerial, satellite dish, or other apparatus for a master antenna, cable, or other communication system for the benefit of all or any portion of La Ventana. Satellite dishes and other antennas, one meter or less in diameter (e.g., DirecTV or Dish satellite dishes) are permitted but must be installed solely on the Owner's Lot, shall not encroach upon any street, Common Area, or any other portion of the Property, and must be placed in a location on the Lot from which an acceptable quality signal can be obtained and where it is least visible from the street and neighboring properties.

3.5.6 Tanks. No Owner may install any tank for storage of fuel, oil, or liquid petroleum gas (LPG). This provision does not apply to a tank used to operate a standard residential gas grill.

3.6 Construction Control Measures.

3.6.1 Owners are responsible at all times for the actions and performance of all contractors working on their Improvements.

3.6.2 Use of unlicensed contractors for new construction or improvements is considered a hazardous activity and can create an unsafe/hazardous condition for adjacent property Owners if not controlled properly. If fire damage occurs on or within the Lot, a fine of $5,000.00, may be levied upon the Owner. In addition, the Owner will be required to pay damages, attorney’s fees, and for debris clean up, as well as damages, attorney fees, and clean up to adjacent properties, if applicable. Commercial vehicles entering and exiting the new construction area or adjoining lots may also be a hazardous activity and, accordingly, may be required to pay damages and/or repair landscaping, hardscaping, irrigation, and/or septic systems damaged by commercial or contractor vehicles.

3.6.3 Construction Debris. Owners must have a plan for the proper and timely containment and disposition of all construction debris. If during the course of construction upon any Lot there is excessive accumulation of debris of any kind which would render the Lot or any portion thereof unsanitary, unsightly, offensive, or detrimental to it or any other portion of the Property, the AC may contract for or cause such debris to be removed and the Owner of the Lot will be liable for all reasonable expenses incurred in connection therewith.

3.6.4 Protection of Roads. Owners/Builders are responsible for the expeditious removal of any mud, rocks, or other debris which are tracked onto the roads or common areas from a Lot where Improvements are under construction.

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Any damage to roads caused by construction activities shall be repaired by the Owner/Builder who is constructing the Improvements. A suggested method of reducing the amount of mud on the road is to place loose rock at the entrance to the construction site. However, regardless of the method chosen, the Owner/Builder remains responsible for maintaining the roads clean of debris, dirt, and mud by the end of each day.

3.6.5 Sanitary facilities. The Owner shall ensure that contractors have available to them a port-a-john or other acceptable facility for use by construction personnel. This facility must be maintained in a clean and serviceable manner at all times.

3.6.6 Utilities for Construction Use. Owners are responsible for ensuring the safe connection to La Ventana water and electrical systems. Construction connections are permitted above ground but must be connected properly and protected at all times.

3.6.7 Contractor Signage. Contractors may install, at their expense, a company sign in front of the property during construction. Signs larger than 3’ x 4’ are not permitted.3.7 The AC will periodically review Article 3 to ensure it reflects the current standards desired by the Community. Comments, changes, or suggestions may be submitted to the AC for consideration and incorporation into the next revision of the CC&R.

ARTICLE 4LA VENTANA RANCH OWNERS’ ASSOCIATION, INC.

4.1 Organization . The Association will be a nonprofit corporation created for the purposes, charged with the duties, and vested with the powers of a Texas non-profit corporation. Neither the Articles nor Bylaws will for any reason be amended or otherwise changed or interpreted so as to be inconsistent with this Declaration.

4.2 Membership .

4.2.1 Mandatory Membership . Any person or entity, upon becoming an Owner, will automatically become a Member of the Association. Membership will be appurtenant to and will run with the ownership of the Lot that qualifies the Owner thereof for membership, and membership may not be severed from the ownership of the Lot, or in any way transferred, pledged, mortgaged, or alienated, except together with the title to such Lot. Within thirty (30) days after acquiring legal title to a Lot, if requested by the Board, an Owner must provide the Association with: (i) a copy of the recorded deed by which the Owner has acquired title to the Lot; (ii) the Owner’s address, email address, phone number, and driver’s license number, if any; (iii) any Mortgagee’s name and address; and

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(iv) the name, phone number, and email address of any Resident other than the Owner.

4.2.2 Easement of Enjoyment – Common Area . Every Member will have a right and easement of enjoyment in and to all of the Common Area and an access easement by and through any Common Area, which easements will be appurtenant to and will pass with the title to such Member’s Lot, subject to the following restrictions and reservations:

(i) The right of the Association to suspend the Member’s right to use the Common Area for any period during which any Assessment against such Member’s Lot remains past due and for any period during which such member is in violation of any provision of this Declaration;

(ii) The right of the Board, to dedicate or transfer all or any part of the Common Area to any public agency, authority, or utility for any purpose;

(iii) The right of the Board to grant easements or licenses over and across the Common Area;

(iv) The right of the Board to borrow money for the purpose of improving the Common Area and, in furtherance thereof, mortgage the Common Area;

(v) The right of the Board to promulgate Rules and Regulations regarding the use of the Common Area and any Improvements thereon; and

(vi) The right of the Association to contract for services with any third parties on such terms as the Board may determine.

4.3 Governance . As more specifically described in the Bylaws, the Board will consist of seven (7) persons elected at the annual meeting of the Association, or at a special meeting called for such purpose. Board Members must be property owners and be elected by Owners.

4.4 Voting Rights . The right to cast votes and the number of votes which may be cast for election of members to the Board and on all other matters to be voted on by the Members will be calculated as set forth below.

(i) Each Lot will have one (1) vote.

(ii) When more than one person or entity owns a portion of the fee simple interest in any Lot, all such persons or entities will be Members. The vote or votes (or fraction thereof) for such Lot will be exercised by the person so designated in writing, at least twenty four (24) hours prior to the vote, to the Secretary of the Association by the Owner of such Lot, and in no event will the vote for such Lot exceed

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the total votes to which such Lot is otherwise entitled under this Section 4.4.

4.5 Powers . The Association will have the powers of a Texas nonprofit corporation. It will further have the power to do and perform any and all acts that may be necessary or proper, for or incidental to, the exercise of any of the express powers granted to it by Applicable Law or this Declaration. Without in any way limiting the generality of the two preceding sentences, the Board, acting on behalf of the Association will exercise its duties, responsibilities’ and authorities consistent with that certain settlement agreement between the ROA and Pacesetter Homes, LLC dated on or about December 6, 2016

4.5.1 Rules and Regulations, Bylaws, and Community Manual . To make, establish, and promulgate, and in its discretion to amend from time to time or repeal and re-enact such rules, regulations, policies, Bylaws, and Community Manual not in conflict with this Declaration, as it deems proper, covering any and all aspects of the Property or the Common Area (including the operation, maintenance, and preservation thereof) or the Association.

4.5.2 Insurance . To obtain and maintain in effect, policies of insurance that, in the opinion of the Board, are reasonably necessary or appropriate to carry out the Association’s functions.

4.5.3 Records . To keep books and records of the Association’s affairs and to make such books and records, together with current copies of the Restrictions, available for inspection by the Owners, Mortgagees, and insurers (or guarantors) of any Mortgage upon request during normal business hours.

4.5.4 Assessments . To levy and collect assessments as provided in Article 6 below.

4.5.5 Right of Entry and Enforcement . To enter at any time without notice in an emergency (or in the case of a non-emergency, after twenty-four (24) hours written notice), without being liable to any Owner or Resident, upon any Lot and into any Improvement thereon for the purpose of enforcing the Restrictions or for the purpose of maintaining or repairing any area, Improvement, or other facility to conform to the Restrictions. The expense incurred by the Association in connection with the entry upon any Lot and the maintenance and repair work conducted thereon or therein will be a personal obligation of the Owner of the Lot so entered, will be deemed an Individual Assessment against such Lot, will be secured by a lien upon such Lot, and will be enforced in the same manner and to the same extent as provided in Article 6 hereof for Assessments. The Association will have the power and authority from time to time, in its own name and on its own behalf, or in the name of and on behalf of any Owner who consents thereto, to commence and maintain actions and suits to enforce by mandatory injunction or otherwise, or to restrain and enjoin, any breach or threatened breach of the Restrictions. The Association is also authorized to settle claims, enforce liens, and take any such action as it may deem necessary or expedient to enforce the Restrictions. The Association may not alter or demolish any Improvements on any Lot other than Common Area in enforcing these Restrictions before a judicial

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order authorizing such action has been obtained by the Association or before the written consent of the Owner(s) of the affected Lot(s) has been obtained. EACH SUCH OWNER AND RESIDENT WILL RELEASE AND HOLD HARMLESS THE ASSOCIATION, ITS OFFICERS, DIRECTORS, EMPLOYEES, AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM, OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION’S ACTS OR ACTIVITIES UNDER THIS SECTION 4.5.5 (INCLUDING ANY COST, EXPENSE, LIABILITY, CLAIM, OR CAUSE OF ACTION ARISING OUT OF THE ASSOCIATION’S NEGLIGENCE IN CONNECTION THEREWITH), EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM, OR CAUSE OF ACTION ARISING BY REASON OF THE ASSOCIATION’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. “GROSS NEGLIGENCE” DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE, OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE.

4.5.6 Legal and Accounting Services . To retain and pay for legal and accounting services necessary or proper in the operation of the Association. No lawsuit may be filed on behalf of the Association without a majority vote of the Board. Before filing a lawsuit on behalf of the Association, the Board will first confer with the Owners at a meeting of the Board (regular or special). However, if in the sole discretion of the Board, it is necessary for the Association to seek extraordinary relief from a court of competent jurisdiction as allowed by applicable State or Federal law, the Board may cause the Association to do so without first conferring with the Owners.

4.5.7 Association Funds & Spending Limits . Association funds may be spent as determined by a majority of the Board, subject to any spending limits the Board imposes on itself by the Association’s Bylaws, Community Manual, Rules and Regulations, and/or Board Resolution(s).

4.5.8 Conveyances . To grant and convey to any person or entity the real property and/or other interest, including fee title, leasehold estates, easements, rights-of-way, or mortgages, out of, in, on, over, or under any Common Area for the purpose of constructing, erecting, operating, or maintaining the following:

(i) Parks, parkways, or other recreational facilities or structures;

(ii) Roads, streets, private roads, entry gates, sidewalks, signs, street lights, walks, driveways, trails, and paths;

(iii) Lines, cables, wires, conduits, pipelines, or other devices for utility purposes;

(iv) Sewers, water systems, storm water drainage systems, sprinkler systems, and pipelines; and/or

(v) Any similar Improvements or facilities.

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Nothing set forth above, however, will be construed to permit use or occupancy of any Improvement or other facility in a way that would violate applicable use and occupancy restrictions imposed by the Restrictions or by Applicable Law.

4.5.9 Manager . To retain and pay for the services of a person or firm (the “Manager”), to manage and operate the Association, including its property, to the extent deemed advisable by the Board. Personnel may be employed directly by the Association or may be furnished by the Manager. To the extent permitted by Applicable Law, the Board may delegate any other duties, powers, and functions to the Manager. In addition the Board may adopt transfer fees, resale certificate fees, or any other fees associated with the provision of management services to the Association or its Members. THE MEMBERS HEREBY RELEASE THE ASSOCIATION AND THE MEMBERS OF THE BOARD AND COMMITTEE MEMBERS FROM LIABILITY FOR ANY OMISSION OR IMPROPER EXERCISE BY THE MANAGER OF ANY SUCH DUTY, POWER, OR FUNCTION SO DELEGATED.

4.5.10 Property Services . To pay for water, sewer, garbage removal, street lights, landscaping, gardening, and all other utilities, services, repair, and maintenance for any portion of the Property, Common Area, private or public recreational facilities, easements, roads, roadways, right-of-ways, signs, parks, parkways, median strips, sidewalks, paths, trails, ponds, and lakes.

4.5.11 Other Services and Properties . To obtain and pay for any other property and services and to pay any other taxes or assessments that the Association or the Board is required or permitted to secure or to pay for pursuant to Applicable Law or under the terms of the Restrictions or as determined by the Board.

4.5.12 Construction on Common Area . To construct new Improvements or additions to any property owned, leased, or licensed by the Association.

4.5.13 Contracts . To enter into Bulk Rate Contracts or other contracts or licenses with any third party on such terms and provisions as the Board will determine, to operate and maintain any Common Area or other property, or to provide any service, including but not limited to cable, utility, or telecommunication services, or perform any function on behalf of the Board, the Association, or the Members.

4.5.14 Property Ownership . To acquire, own and dispose of all manner of real and personal property, including habitat, whether by grant, lease, easement, gift, or otherwise.

4.5.15 Allocation of Votes . To determine votes when permitted pursuant to Section 4.4 above.

4.5.16 Membership Privileges . To establish Rules and Regulations governing and limiting the use of the Common Area and any Improvements thereon.

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4.6 Conveyance of Common Area to the Association . The Association may acquire, hold, and dispose of any interest in tangible and intangible personal property and real property. Pacesetter Homes, LLC, and its assignees, reserves the right, from time to time and at any time, to convey by written and Recorded instrument portions of the Preserve Phase III for the benefit of the Association. Upon the Recording of such conveyance, the portion of the Property identified therein will be considered Common Area for the purpose of this Declaration. Notwithstanding the foregoing, the Association shall have no duty to accept any designation or conveyance of Common Area, other than land for parks, equestrian paths, and facilities for water or propane distribution system facilities or equipment. All or any real or personal property conveyed by Pacesetter Homes, LLC to the Association and accepted by the Association, shall be considered Common Area.

4.7 Indemnification . To the fullest extent permitted by Applicable Law but without duplication (and subject to) any rights or benefits arising under the Articles or Bylaws of the Association, the Association will indemnify any person who was, or is, a party, or is threatened to be made a party to any threatened pending or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative by reason of the fact that such person is, or was, a director, officer, committee member, employee, servant, or agent of the Association against expenses, including attorneys’ fees, reasonably incurred by such person in connection with such action, suit, or proceeding if it is found and determined by the Board or a court of competent jurisdiction that he or she: (i) acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the Association; or (ii) with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The termination of any action, suit, or proceeding by settlement, or upon a plea of nolo contendere or its equivalent, will not of itself create a presumption that the person did not act in good faith or in a manner which was reasonably believed to be in, or not opposed to, the best interests of the Association or, with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.

4.8 Insurance . The Board may purchase and cause to be maintained, at the expense of the Association, insurance on behalf of any person who is acting as a director, officer, committee member, employee, servant, or agent of the Association against any liability asserted against or incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not the Association would have the power to indemnify such person against such liability or otherwise.

4.9 Bulk Rate Contracts . Without limitation on the generality of the Association powers set out in Section 4.5 hereinabove, the Association will have the power to enter into Bulk Rate Contracts at any time and from time to time. The Association may enter into Bulk Rate Contracts with any service providers chosen by the Board. The Bulk Rate Contracts may be entered into on such terms and provisions as the Board may determine in its sole and absolute discretion.

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4.10 Private Roads . The Private Roads are private, and the Association shall have the responsibility to maintain the Private Roads in a good and functioning condition and in compliance with Applicable Law. The Association shall provide perpetual and reasonable access to the Private Roads across the Property for the Association, the Residents, and their invitees, police and other emergency vehicles, public and private utility maintenance and service personnel, solid waste collection services, the U.S. Postal Service, and government employees in pursuit of their official duties. Any Private Roads located within the Property are Common Area and are administered and maintained by the Association. The Association, acting through the Board, has the express authority to adopt, amend, repeal, and enforce Rules and Regulations for use of Private Roads, including but not limited to: (i) identification of vehicles used by Owners, Residents, and their guests; (ii) designation of parking or no-parking areas; (iii) limitations or prohibitions on curbside parking; (iv) removal or prohibition of vehicles that violate applicable Rules and Regulations; and (v) fines for violations of applicable Rules and Regulations.

ARTICLE 5INSURANCE

5.1 Insurance . Each Owner will be required to purchase and maintain commercially standard insurance on the Improvements located upon such Owner’s Lot. The Association will not be required to maintain insurance on the Improvements constructed upon any Lot. The Association may, however, obtain such insurance as it may deem necessary, including but not limited to such policies of liability and property damage insurance as the Board, in its discretion, may deem necessary. Insurance premiums for such policies will be a common expense to be included in the Assessments levied by the Association. The acquisition of insurance by the Association will be without prejudice to the right and obligation of any Owner to obtain additional individual insurance.

5.2 Restoration . In the event of any fire or other casualty, the Owner will promptly repair, restore, and replace any damaged or destroyed structures to their same exterior condition existing prior to the damage or destruction thereof. Such repair, restoration, or replacement will be commenced and completed in a good and workmanlike manner using exterior materials substantially similar to those originally used in the structures damaged or destroyed. To the extent that the Owner fails to commence such repair, restoration, or replacement of substantial or total damage or destruction within one hundred and twenty (120) days after the occurrence of such damage or destruction, and thereafter prosecute the same to completion, or if the Owner does not clean up any debris resulting from any damage within thirty (30) days after the occurrence of such damage, the Association may commence, complete, or effect such repair, restoration, replacement, or clean-up, and such Owner will be personally liable to the Association for the cost of such work. However, if the Owner is prohibited or delayed by Applicable Law from commencing such repair, restoration, replacement, or clean-up, the rights of the Association under this provision will not arise until the expiration of thirty (30) days after such prohibition or delay is removed. If the Owner fails to pay such cost upon demand by the Association, the cost thereof (plus interest from the date of demand until paid at the maximum

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lawful rate, or if there is no such maximum lawful rate, then at the rate of one and one-half percent (1½%) per month) will be added to the Assessment chargeable to the Owner’s Lot. Any such amounts added to the Assessments chargeable against a Lot will be secured by the liens reserved in this Declaration for Assessments and may be collected by any means provided in this Declaration for the collection of Assessments, including, but not limited to, foreclosure of such liens against the Owner’s Lot. EACH SUCH OWNER WILL RELEASE AND HOLD HARMLESS THE ASSOCIATION AND ITS OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EMPLOYEES, AND AGENTS FROM ANY COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM, OR CAUSE OF ACTION INCURRED OR THAT MAY ARISE BY REASON OF THE ASSOCIATION’S ACTS OR ACTIVITIES UNDER THIS SECTION 5.2, EXCEPT FOR SUCH COST, LOSS, DAMAGE, EXPENSE, LIABILITY, CLAIM, OR COST OF ACTION ARISING BY REASON OF THE ASSOCIATION’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. “GROSS NEGLIGENCE” AS USED HEREIN DOES NOT INCLUDE SIMPLE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE,, OR SIMILAR NEGLIGENCE SHORT OF ACTUAL GROSS NEGLIGENCE.

5.3 Mechanic’s and Materialmen’s Lien . Each Owner whose structure is repaired, restored, replaced, or cleaned up by the Association pursuant to the rights granted under this Article 5, hereby grants to the Association an express mechanic’s and materialmen’s lien for the reasonable cost of such repair, restoration, or replacement of the damaged or destroyed Improvement to the extent that the cost of such repair, restoration, or replacement exceeds any insurance proceeds allocable to such repair, restoration, or replacement and delivered to the Association. Upon request by the Board, and before the commencement of any reconstruction, repair, restoration, or replacement, such Owner will execute all documents sufficient to effectuate such mechanic’s and materialmen’s lien in favor of the Association.

ARTICLE 6COVENANT FOR ASSESSMENTS

6.1 Assessments .

6.1.1 Established by Board . Assessments established by the Board pursuant to the provisions of this Article 6 will be levied against each Lot in amounts determined pursuant to Section 6.7 below. The total amount of Assessments will be determined pursuant to Sections 6.3, 6.4, 6.5, and/or 6.6.

6.1.2 Personal Obligation; Lien . Each Assessment, together with such interest thereon and costs of collection as hereinafter provided, will be the personal obligation of the Owner of the Lot against which the Assessment is levied and will be secured by a lien hereby granted and conveyed to the Association against each such Lot and all Improvements thereon. The Association may enforce payment of such Assessments in accordance with the provisions of this Article 6.

6.2 Regular Assessments . Prior to the beginning of each fiscal year, the Board will prepare a budget for the purpose of determining amounts sufficient to

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pay the estimated net expenses of the Association (the “Regular Assessments”) which sets forth: (i) an estimate of the expenses to be incurred by the Association during such year in performing its functions and exercising its powers under the Restrictions, including, but not limited to, the cost of all management, repair, and maintenance, the cost of providing any lighting, the cost of administering and enforcing the Restrictions, and (ii) an estimate of the amount needed to maintain a reasonable provision for contingencies and an appropriate replacement reserve, and will give due consideration to any expected income and any surplus from the prior year’s fund. Assessments sufficient to pay such estimated net expenses will then be levied at the level of Assessments set by the Board in its sole and absolute discretion, and the Board’s determination will be final and binding so long as it is made in good faith. If the sums collected prove inadequate for any reason, including nonpayment of any Assessment, the Association may at any time, and from time to time, levy further Assessments in the same manner. All such Regular Assessments will be due and payable to the Association annually on or before the first day of the month, or in such other manner as the Board may designate in its sole and absolute discretion. In no event, however, shall annual Assessment hereunder be increased by more than ten percent (10%) above the maximum annual Assessment for the preceding calendar year without an affirmative vote of two-thirds (2/3's) of the Owners of the Association who are voting in person or by absentee ballot, at a meeting duly called for such purposes.

6.3 Special Assessments . In addition to the Regular Assessments provided for above, the Board may levy special assessments (the “Special Assessments”) whenever in the Board’s opinion such Special Assessments are necessary to enable the Board to carry out the functions of the Association under the Restrictions. The amount of any Special Assessments will be at the reasonable discretion of the Board. In addition to the Special Assessments authorized above, the Association may, in any fiscal year, levy a Special Assessment for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair, or replacement of a capital improvement upon the Common Area. Any Special Assessment levied by the Association for the purpose of defraying, in whole or in part, costs of any construction, reconstruction, repair, or replacement of capital improvement upon the Common Area will be levied against all Owners based on Assessment Units. In no event, however, shall Special Assessments hereunder exceed One-Thousand Dollars ($1,000.00) per calendar year per Lot without an affirmative vote of two-thirds (2/3's) of the Owners of the Association who are voting in person or by absentee ballot, at a meeting duly called for such purposes.

6.4 Individual Assessments . In addition to any other Assessments, the Board may levy an individual assessment (the “Individual Assessment”) against an Owner and the Owner’s Lot. Individual Assessments may include, but are not limited to: interest, late charges, and collection costs on delinquent Assessments; reimbursement for costs incurred in bringing an Owner or the Owner’s Lot into compliance with this Declaration; fines for violations of the Restrictions; transfer-related fees and resale certificate fees; fees for estoppel letters and project documents; insurance deductibles; reimbursement for damage or waste caused by willful or negligent acts of the Owner, the Owner’s guests, invitees or Residents of the Owner’s Lot; common expenses that benefit fewer than all of the Lots, which

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may be assessed according to benefit received; fees or charges levied against the Association on a per-Lot basis; and “pass through” expenses for services to Lots provided through the Association and which are equitably paid by each Lot according to the benefit received.

6.5 Amount of Assessment .

6.5.1 Assessments to be Levied . The Board shall levy Assessments against each “Assessment Unit.” Unless otherwise provided in this Declaration, Assessments shall be levied uniformly against each Assessment Unit allocated to a Lot.

6.5.2 Assessment Unit . Each Lot shall constitute one “Assessment Unit” unless otherwise provided herein.

6.5.3 Exemption . The Board may exempt any portion of the Property which is dedicated and accepted by public authority from Assessments.

6.6 Late Charges . If any Assessment is not paid by the due date applicable thereto, the Owner responsible for the payment may be required by the Board, at the Board’s election at any time and from time to time, to pay a late charge in such amount as the Board may designate, and the late charge (and any reasonable handling costs) will be levied as an Individual Assessment against the Lot owned by such Owner, collectible in the manner as provided for collection of Assessments, including foreclosure of the lien against such Lot. However, such charge will never exceed the maximum charge permitted under Applicable Law.

6.7 Owner’s Personal Obligation; Interest . Assessments levied as provided for herein will be the personal and individual debt of the Owner of the Lot against which are levied such Assessments. No Owner may exempt himself from liability for such Assessments. In the event of default in the payment of any such Assessment, the Owner of the Lot will be obligated to pay interest on the amount of the Assessment at the highest rate allowed by applicable usury laws then in effect on the amount of the Assessment from the due date therefor (or if there is no such highest rate, then at the rate of one and one half percent (1 1/2%) per month), together with all costs and expenses of collection, including reasonable attorney’s fees. Such amounts will be levied as an Individual Assessment against the Lot owned by such Owner.

6.8 Assessment Lien and Foreclosure . The payment of all sums assessed in the manner provided in this Article is, together with late charges, interest, costs of collection, and attorney's fees as herein provided, secured by the continuing Assessment Lien granted to the Association herein, and will bind each Lot in the hands of the Owner thereof, and such Owner’s heirs, devisees, personal representatives, successors, or assigns. The aforesaid lien will be superior to all other liens and charges against such Lot, except only for: (i) tax and governmental assessment liens; (ii) all sums secured by a first mortgage lien or first deed of trust lien of record, to the extent such lien secures sums borrowed for the acquisition or improvement of the Lot in question, and (iii) home equity loans or home equity lines of credit which are secured by a second mortgage lien or second deed of trust lien of record, provided that, in the case of subparagraphs (ii)

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and (iii) above, such Mortgage was Recorded before the delinquent Assessment was due. The Association will have the power to subordinate the aforesaid Assessment lien to any other lien. Such power will be entirely discretionary with the Board, and such subordination may be signed by an officer, agent, or attorney of the Association. The Association may, at its option and without prejudice to the priority or enforceability of the Assessment Lien granted hereunder, prepare a written notice of Assessment Lien setting forth the amount of the unpaid indebtedness, the name of the Owner of the Lot covered by such lien and a description of the Lot. Such notice may be signed by one of the officers, agents, or attorneys of the Association and will be Recorded. Each Owner, by accepting a deed or ownership interest to a Lot subject to this Declaration, will be deemed conclusively to have granted a power of sale to the Association to secure and enforce the Assessment Lien granted hereunder. The Assessment Liens and rights to Foreclosure thereof will be in addition to and not in substitution of any other rights and remedies the Association may have by law and under this Declaration, including the rights of the Association to institute suit against such Owner personally obligated to pay the Assessment and/or for Foreclosure of the aforesaid Lien. In any Foreclosure proceeding, such Owner will be required to pay the costs, expenses, and reasonable attorney's fees incurred. The Association will have the power to bid (in cash or by credit against the amount secured by the lien) on the property at foreclosure or other legal sale and to acquire, hold, lease, mortgage, convey or otherwise deal with the same. Upon the written request of any Mortgagee, the Association will report to said Mortgagee any unpaid Assessments remaining unpaid for longer than sixty (60) days after the same are due. The Lien hereunder will not be affected by the sale or transfer of any Lot; except, however, that in the event of Foreclosure of any lien superior to the Assessment Lien, the Lien for any Assessments that were due and payable before the Foreclosure sale will be extinguished, provided that past-due Assessments will be paid out of the proceeds of such Foreclosure sale only to the extent that funds are available after the satisfaction of the indebtedness secured by the Mortgage. The provisions of the preceding sentence will not, however, relieve any subsequent Owner (including any Mortgagee or other purchaser at a foreclosure sale) from paying Assessments becoming due and payable after the foreclosure sale. Upon payment of all sums secured by a lien of the type described in this Section, the Association will upon the request of the Owner, and at such Owner’s cost, execute a release of lien relating to any lien for which written notice has been Recorded as provided above, except in circumstances in which the Association has already foreclosed such lien. Such release will be signed by an officer, agent, or attorney of the Association. In addition to the lien hereby retained, in the event of nonpayment by any Owner of any Assessment and after the lapse of at least twelve (12) days since such payment was due, the Association may, upon five (5) days’ prior written notice (which may run concurrently with such twelve (12) day period) to such Owner, in addition to all other rights and remedies available pursuant to Applicable Law, terminate, in such manner as the Board deems appropriate, any utility or cable service provided through the Association and not paid for directly by an Owner or Resident to the utility or service provider. Such notice will consist of a separate mailing or hand delivery at least five (5) days prior to a stated date of disconnection, with the title “Termination Notice” or similar language prominently displayed on the notice. The notice will include the office or street address where the Owner or the

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Owner’s tenant can make arrangements for payment of the bill and for reconnection of service. Utility or cable service will not be disconnected on a day, or immediately preceding a day, when personnel are not available for the purpose of collection and reconnecting such services. Except as otherwise provided by Applicable Law, the sale or transfer of a Lot will not relieve the Owner of such Lot or such Owner’s transferee from liability for any Assessments thereafter becoming due or from the lien associated therewith. If an Owner conveys its Lot and on the date of such conveyance Assessments against the Lot remain unpaid, or said Owner owes other sums or fees under this Declaration to the Association, the Owner will pay such amounts to the Association out of the sales price of the Lot, and such sums will be paid in preference to any other charges against the Lot other than liens superior to the Assessment Lien and charges in favor of the State of Texas (or a political subdivision thereof) for taxes on the Lot which are due and unpaid. The Owner conveying such Lot will remain personally liable for all such sums until the same are fully paid, regardless of whether the transferee of the Lot also assumes the obligation to pay such amounts. The Board may adopt an administrative transfer fee to cover the expenses associated with updating the Association’s records upon the transfer of a Lot to a third party. However, no transfer fee will be due upon the transfer of a Lot from Pacesetter Homes, LLC to a third party.

6.9 Exempt Property . The following areas will be exempt from the Assessments provided for in this Article 6:

(i) All area dedicated and accepted by a public authority;

(ii) The Common Area; and

(iii) Property owned by Pacesetter Homes<,LLC

6.10 Fines and Damages Assessment .

6.10.1 Board Assessment . The Board may assess fines against an Owner for violations of the Restrictions which have been committed by an Owner, a Resident, or the Owner or Residents guests, agents, or invitees. Any fine and/or charge levied in accordance with this Section 6.12 will be considered an Individual Assessment pursuant to this Declaration. Each day of violation may be considered a separate violation if the violation continues after written notice to the Owner. The Board may assess damage charges against an Owner for pecuniary loss to the Association from property damage or destruction of Common Area or any facilities caused by the Owner, Resident, or their guests, agents, or invitees. The Manager will have authority to send notices to alleged violators, informing them of their violations and asking them to comply with the Rules and Regulations and/or informing them of potential or probable fines or damage assessments. The Board may from time to time adopt a schedule of fines.

6.10.2 Lien Created . The payment of each fine and/or damage charge levied by the Board against the Owner of a Lot is, together with interest as provided in Section 6.9 hereof and all costs of collection, including attorney’s fees as herein provided, secured by the lien granted to the Association pursuant to Section 6.1.2 of this Declaration. The fine and/or damage charge will be

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considered an Assessment for the purpose of this Article 6 and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to this Article 6.

ARTICLE 7ARCHITECTURAL COMMITTEE (AC)

7.1 Purpose. The purpose of the Architectural Committee (AC) is:

7.1.1 To review, on behalf of the La Ventana Board of Directors, all proposed Improvements to the La Ventana community to ensure that they are consistent with the Construction Standards found in Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS.

7.1.2 To advise Owners in a timely manner of any deficiencies which must be addressed or any additional information which must be provided before their Application for Improvement can be approved.

7.1.3 To collaborate with Owners and the Board early-on and continuously to ensure that La Ventana Construction Standards are understood and applied.

7.1.4 To refer all requests for variance which are outside the Committee’s designated authority to the Board for approval.

7.2 Authorities and Limitations.

7.2.1 Authorities.

7.2.1.1 The AC is authorized by the La Ventana Board of Directors to review all Applications for Improvement and all modifications to the La Ventana Community, without exception, to ensure they are consistent with the Construction Standards found in Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS and to expeditiously approve such Applications if it is deemed they meet those standards.

7.2.1.2 The AC will have the right to employ consultants and advisors as it deems necessary or as directed by the Board.

7.2.1.3 The AC will have the right to assess fees for the processing of an Application or to waive such fee if the Chairman of the AC deems it appropriate.

7.2.2 Limitations. The AC and individual members of the AC are working in a voluntary capacity under the direction of the Board of Directors. Neither the Committee nor the individual members are operating under the authority of any national, state, or county licensure or certification. The AC is limited in their duties to approving submitted Applications for Improvement and all required documentation (e.g., drawings, plans, specifications, etc.) once they have ensured compliance with written standards of these COVENANTS, CONDITIONS, AND RESTRICTIONS.

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7.2.3 All waivers or requests for variance which are explicitly outside the authority of the Committee must be approved by the Board, without exception.

7.3 Members of the Architectural Committee.

7.3.1 Composition. The AC will be composed of not less than one (1) and not more than seven (7) Members of the Community appointed as provided below on a voluntary basis. Committee Members must be La Ventana ROA members in residence and are expected to be familiar with the CC&R, in general, and the AC Articles in detail.

7.3.2 Appointment and Tenure.

7.3.2.1 During the Development Period, the Declarant will have the right to appoint or remove (with or without cause) all members of the AC, provided at least eighty percent (80%) of the Board approves such appointment or removal. This authority may be delegated to the Board in writing.

7.3.2.2 Upon the expiration of the Development Period, the Board will have the right to appoint and remove (with or without cause) all members of the AC.

7.3.2.3 AC members will be appointed for not more than one term of two-years and may be extended for one additional term with unanimous consent of the Board. A previous AC member may be appointed by the Board to serve again after a one-year period between terms.

7.3.3 Architectural Committee Standards of Conduct.

7.3.3.1 Community Engagement. Members of the AC are serving on a voluntary basis to maintain the standards that the Community desires in La Ventana. Members are expected to treat all Homeowners with dignity and respect at all times and to perform their duties in an impartial and unbiased manner befitting of their responsibilities to the Board and to the Community. Likewise, Community members should also be courteous with the AC to ensure mutual respect and an environment of collaboration and cooperation between both parties. Actual or suspected inappropriate behavior should be reported to the Board Secretary for resolution.

7.3.3.2 Internal Deliberations of the AC. E-mail or verbal discussions regarding matters pertaining to the business of the Architectural Committee are privileged and should not be shared outside the Committee. Summaries of decisions will be released to the Community on a quarterly basis. Unauthorized release of information outside the AC may result in removal of a member from the Committee.

7.3.3.3 Conflicts of Interest. A conflict of interest exists when someone benefits or is perceived to benefit, either financially or otherwise, from a particular action or decision. Members of the AC are expected to evaluate all Applications for Improvement in a fair, impartial, complete, and thorough manner. All members’ input and recommendations are valued and necessary for the proper

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processing of Applications for Improvement. However, no member may cast the deciding vote on any Application from a family member, immediate neighbor, or close friend, or any other perceived/reported conflict of interest. The AC Chairman reserves the right to have the member recuse himself or, upon discussion with the President of the Board, to have any reported or perceived conflicts of interest investigated.

7.4 Processes and Procedures of the Architectural Committee.

7.4.1 Review of Owners’ Plans for Improvements.

7.4.1.1 La Ventana Owners who wish to make an Improvement to their property must first receive the authorization of the Community, represented by the AC. It is the Owner’s responsibility to ensure all plans and specifications comply with the construction standards found in Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS and Checklists in Appendix B.

7.4.1.2 Site clearing (other than cedar reduction) and construction cannot begin until the Owner has submitted an Application for Improvement; the AC has completed its review and confirmed compliance with these COVENANTS, CONDITIONS, AND RESTRICTIONS; a majority of the members have recommended approval; and the AC has provided written approval of the Application to the Owner.

7.4.1.3 Owners must submit, in advance of construction, all appropriate drawings, specifications, surveys, and supporting documents to the AC for review. Failure to submit all required information may delay review and subsequent approval.

7.4.1.4 The AC will review the documents in accordance with Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS and the Checklist in Appendix B. In all cases with all members having been given the opportunity to vote, approval of the Application will be determined by the vote of a majority of the AC. In the event there is an even number of members on the Committee and they have a tie vote on an Improvement, the Board Secretary will cast the tie-breaking vote. If the Owner’s submission is incomplete or does not conform to La Ventana standards, as defined in Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS, the AC will provide a written explanation of what must be done to complete its review or approve the Application. The Committee will endeavor to approve the Owner’s Application within 30 days of submission of all required/requested data.

7.4.2 Reports to the Board by the Architectural Committee (AC). The AC is accountable to the Community and the Board for the timely processing of Applications for Improvement in La Ventana. In order to maintain this accountability in a transparent and effective manner:

7.4.2.1 The AC will maintain a register of Applications for Improvement on the La Ventana website, showing tracking number, project description, date of submission, date of release, and application status. Personal information will not be presented.

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7.4.2.2 The AC will provide a written summary report to the Board of Directors on a quarterly basis for all actions performed by the Committee.

7.4.2.3 At the request of the President, the AC will provide a presentation to the Community during Town Hall meetings to assist in providing clarity on how the Community is maintaining its standards in a fair and effective manner.

7.4.3 Periodic Review of La Ventana Construction Standards.

7.4.3.1 The AC will periodically review the construction standards to ensure that they represent the guidelines under which La Ventana should be governed and are consistent with Applicable laws and codes. Any changes which are considered will be presented to the Board and Community for approval and incorporation into the existing Construction Standards found in Article 3 of these COVENANTS, CONDITIONS, AND RESTRICTIONS. Owners will not be responsible to fulfill requirements which are not explicitly stated in Article 3 and the Checklist in Appendix B.

7.4.3.2 In no case will changes to the Construction Standards of these COVENANTS, CONDITIONS, AND RESTRICTIONS be retroactive.

7.5 Waivers and Variances.

7.5.1 Waivers and variances which are not explicitly stated to be in the Committee’s authority in Article 3 may only be granted by the Board of Directors and will only be granted when extenuating circumstances warrant their consideration.

7.5.2 Owners wishing to pursue a waiver or variance to the Construction Standards found in Article 3 should submit their requests through the AC to the Board as soon as it is identified in order to give it proper consideration. The AC will analyze the request and either approve the request if it is within their authority, or provide the request, with the AC’s analysis and recommendations, to the Board for its consideration and approval.

7.5.3 Approved waivers and/or variances, with reason for approval, will be reported to the community through the newsletter and will be maintained in the AC register on the La Ventana website.

7.5.4 Waivers and variances are site and situation specific. Accordingly, the granting of a waiver or variance will not necessarily constitute the amendment of the terms and provisions of the Construction Standards in Article 3 for any purpose except as to the particular property and in the particular instance covered by the variance and should not be considered to establish a precedent for any future waiver, modification, or amendment.

7.6 Owner Appeals of Decisions Rendered by the Architectural Committee (AC). It is generally recognized that the review and approval of an Application for Improvement should be a collaborative effort between the Owner and the AC. If the Owner disagrees with the findings of the AC, the Owner may

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appeal to the La Ventana Board of Directors in person, with an AC member in attendance. The Board will review the information provided by both the Owner and the AC and render its decision. The Board’s decision will be final.

7.7 Non-Liability of AC Members. NEITHER DECLARANT, THE BOARD, THE AC, NOR ANY MEMBER WILL BE LIABLE TO ANY OWNER OR TO ANY OTHER PERSON FOR ANY LOSS, DAMAGE, OR INJURY ARISING OUT OF THE PERFORMANCE OF THE AC’S DUTIES UNDER THIS DECLARATION.

ARTICLE 8MORTGAGE PROVISIONS

The following provisions are for the benefit of holders, insurers, and guarantors of first Mortgages on Lots within the Property. The provisions of this Article 8 apply to this Declaration and the Bylaws of the Association.

8.1 Notice of Action . An institutional holder, insurer, or guarantor of a first Mortgage which provides a written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and the street address of the Lot to which its Mortgage relates (thereby becoming an “Eligible Mortgage Holder”), will be entitled to timely written notice of:

(i) Any condemnation loss or any casualty loss which affects a material portion of the Property or which affects any Lot on which there is an eligible Mortgage held, insured, or guaranteed by such Eligible Mortgage Holder;

(ii) Any delinquency in the payment of assessments or charges owed for a Lot subject to the Mortgage of such Eligible Mortgage Holder, where such delinquency has continued for a period of sixty (60) days, or any other violation of the Restrictions relating to such Lot or the Owner or Resident which is not cured within sixty (60) days; or

(iii) Any lapse, cancellation, or material modification of any insurance policy maintained by the Association.

8.2 Examination of Books . The Association will permit Mortgagees to examine the books and records of the Association during normal business hours.

8.3 Taxes, Assessments and Charges . All taxes, assessments and charges that may become liens prior to first lien mortgages under Applicable Law will relate only to the individual Lots and not to any other portion of the Property.

ARTICLE 9GENERAL PROVISIONS

9.1 Term . The terms, covenants, conditions, restrictions, easements, charges, and liens set out in this Declaration will run with and bind the Property,

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and will inure to the benefit of and be enforceable by the Association, and every Owner, and their respective legal representatives, heirs, successors, and assigns, for a term beginning on the date this Declaration is Recorded, and continuing through and including January 1, 2025, after which time this Declaration will be automatically extended for successive periods of ten (10) years unless a change (the word “change” meaning a termination, or change of term or renewal term) is approved in a resolution adopted by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, voting in person or by absentee ballot at a meeting duly called for such purpose, written notice of which will be given to all Members at least thirty (30) days in advance and will set forth the purpose of such meeting. Such change will be effective only upon the Recording of a certified copy of such resolution. The foregoing sentence shall in no way be interpreted to mean sixty-seven percent (67%) of a quorum as established pursuant to the Bylaws. Notwithstanding any provision in this Section 9.1 to the contrary, if any provision of this Declaration would be unlawful, void, or voidable by reason of any Applicable Law restricting the period of time that covenants on land may be enforced, such provision will expire twenty-one (21) years after the death of the last survivor of the now living, as of the date of the Recording of this document, descendants of Elizabeth II, Queen of England.

9.2 Eminent Domain . In the event it becomes necessary for any public authority to acquire all or any part of the Common Area for any public purpose during the period this Declaration is in effect, the Board is hereby authorized to negotiate with such public authority for such acquisition and to execute instruments necessary for that purpose. Should acquisitions by eminent domain become necessary, only the Board need be made a party, and in any event the proceeds received will be held by the Association for the benefit of the Owners. In the event any proceeds attributable to acquisition of Common Area are paid to Owners, such payments will be allocated on the basis of Assessment Units and paid jointly to the Owners and the holders of Mortgages or deeds of trust on the respective Lot.

9.3 Amendment . This Declaration may be amended or terminated by the Recording of an instrument executed and acknowledged by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes entitled to be cast by members of the Association. The foregoing sentence shall in no way be interpreted to mean sixty-seven percent (67%) of a quorum as established pursuant to the Bylaws.

9.4 Enforcement . The Association will have the right to enforce, by a proceeding at law or in equity, the Restrictions. The Association may levy fines and liens, initiate, defend, or intervene in any action brought to enforce any provision of the Restrictions. Such right of enforcement will include both damages for and injunctive relief against the breach of any provision hereof. Every act or omission whereby any provision of the Restrictions is violated, in whole or in part, is hereby declared to be a nuisance and may be enjoined or abated by any Owner of a Lot (at such Owner’s own expense) or the Association. Any violation of any Applicable Law pertaining to the ownership, occupancy, or use of any portion of the Property is hereby declared to be a violation of this Declaration and subject to all of the enforcement procedures set forth herein. Failure to enforce any right,

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provision, covenant, or condition set forth in the Restrictions will not constitute a waiver of the right to enforce such right, provision, covenants or condition in the future. Failure of the Association to enforce the terms and provisions of the Restrictions shall in no event give rise to any claim or liability against the Association or any of its partners, directors, officers, or agents.

9.5 Higher Authority . The terms and provisions of this Declaration are subordinate to County, State and Federal Law. Generally, the terms and provisions of this Declaration are enforceable to the extent they do not violate or conflict with Applicable Law.

9.6 Severability . If any provision of this Declaration is held to be invalid by any court of competent jurisdiction, such invalidity will not affect the validity of any other provision of this Declaration, or, to the extent permitted by Applicable Law, the validity of such provision as applied to any other person or entity.

9.7 Conflicts . If there is any conflict between the provisions of this Declaration, the Articles, the Bylaws, or any Rules and Regulations adopted pursuant to the terms of such documents, the provisions of this Declaration, the Articles, the Bylaws, and the Rules and Regulations, in such order, will govern.

9.8 Gender . Whenever the context so requires, all words herein in the male gender will be deemed to include the female or neuter gender, all singular words will include the plural, and all plural words will include the singular.

9.9 Acceptance by Owners . Each Owner of a Lot or other real property interest in the Property, by the acceptance of a deed of conveyance, or each subsequent purchaser, accepts the same subject to all terms, restrictions, conditions, covenants, reservations, easements, liens and charges, and the jurisdiction rights and powers created or reserved by this Declaration or to whom this Declaration is subject, and all rights, benefits and privileges of every character hereby granted, created, reserved or declared. All impositions and obligations hereby imposed will constitute covenants running with the land within the Property, and will bind any person having at any time any interest or estate in the Property, and will inure to the benefit of each Owner in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every deed of conveyance.

9.10 Damage and Destruction . The Association shall undertake the following actions subsequent to damage or destruction to all or any part of the Common Area covered by insurance:

9.10.1 Claims . Promptly after damage or destruction by fire or other casualty to all or any part of the Common Area covered by insurance, the Board, or its duly authorized agent, will proceed with the filing and adjustment of all claims arising under such insurance and obtain reliable and detailed estimates of the cost of repair of the damage. Repair, as used in this Section 9.10.1, means repairing or restoring the Common Area to substantially the same condition as existed prior to the fire or other casualty.

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9.10.2 Repair Obligations . Any damage to or destruction of the Common Area will be repaired unless a Majority of the Board decides within sixty (60) days after the casualty not to repair. If for any reason either the amount of the insurance proceeds to be paid as a result of such damage or destruction, or reliable and detailed estimates of the cost of repair, or both, are not made available to the Association within said period, then the period will be extended until such information will be made available.

9.10.3 Restoration . In the event that it should be determined by the Board that the damage or destruction of the Common Area will not be repaired and no alternative Improvements are authorized, then the affected portion of the Common Area will be restored to its natural state and maintained as an undeveloped portion of the Common Area by the Association in a neat and attractive condition.

9.10.4 Special Assessment . If insurance proceeds are paid to restore or repair any damaged or destroyed Common Area, and such proceeds are not sufficient to defray the cost of such repair or restoration, the Board will levy a Special Assessment, as provided in Article 6, against all Owners. Additional Assessments may be made in like manner at any time during or following the completion of any repair.

9.10.5 Proceeds Payable . In the event that any proceeds of insurance policies are paid as a result of any damage or destruction to any Common Area, Owners relinquish any interest they have or may have in such payments, and all such amounts will be paid to the Association.

9.11 No Partition . Except as may be permitted in this Declaration or amendments thereto, no physical partition of the Common Area or any part thereof will be permitted, nor will any person acquiring any interest in the Property or any part thereof seek any such judicial partition unless the portion of the Property or Common Area in question has been removed from the provisions of this Declaration pursuant to Section 11.2 below. This Section 9.11 will not be construed to prohibit the Board from acquiring and disposing of tangible personal property or from acquiring title to real property that may or may not be subject to this Declaration.

9.12 Notices . Any notice permitted or required to be given to any person by this Declaration will be in writing and may be delivered either email, personally, or by mail, or as otherwise required by Applicable Law.

9.13 View Impairment The Association does not guarantee or represent that any view over and across the Lots, or any open space or Common Area within the Property will be preserved without impairment (save an except the front fields which will never be improved). Neither the ACC, nor the Association shall have any obligation to relocate, prune, thin trees or perform other landscaping. The Association (with respect to any Common Area) will have the right to add trees and other landscaping from time to time, subject to Applicable Law. There shall be no express or implied easements for view purposes or for the passage of light and air.

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9.14 Safety and Security . Each Owner and Resident of a Lot, and their respective guests and invitees, shall be responsible for their own personal safety and the security of their property within the Property and the Common Area. The Association may, but shall not be obligated to, maintain or support certain activities within the Property and the Common Area designed to promote or enhance the level of safety or security which each person provides for himself or herself and his or her property. However, neither the Association shall not in any way be considered insurers or guarantors of safety or security within the Property or the Common Area, nor shall either be held liable for any personal injury, loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made that any systems or measures, including security monitoring systems or any mechanism or system for limiting access to the Property or the Common Area, cannot be compromised or circumvented; or that any such system or security measures undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Owner acknowledges, understands, and shall be responsible for informing any Residents of such Owner’s Lot that the Association, its Board and committees are not insurers or guarantors of security or safety and that each person within the Property assumes all risks of personal injury and loss or damage to the property, including any residences or Improvements constructed upon any Lot and the contents thereof, resulting from acts of third parties. The Access Gates are not intended to replace or serve in lieu of individual alarm systems or other measures to provide security within any Lot.

ARTICLE 10EASEMENTS

10.1 Reserved Easements . All dedications, limitations, restrictions and reservations shown on any Plat and all grants and dedications of easements, rights-of-way, restrictions and related rights made by a party prior to the Property becoming subject to this Declaration are incorporated herein by reference and made a part of this Declaration for all purposes as if fully set forth herein, and will be construed as being adopted in each and every contract, deed or conveyance.

10.2 Utility Easements . The Board may grant easements over and across the Lots and Common Areas to the extent necessary or required to provide utilities to the Lots and Common Area; provided, however, that such easements do not unreasonably interfere with the use of any residence for residential purposes. A company or entity, public or private, furnishing utility service to the Property, is granted an easement over the Property, for ingress, egress, meter reading, installation, maintenance, repair, or replacement of utility lines and equipment, and to do anything else necessary to properly maintain and furnish utility service to the Property. Utilities may include, but are not limited to, water, water wells, water tanks, sewer, trash removal, electricity, gas, telephone, electronic communications and internet, master or cable television and security.

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ARTICLE 11PROPERTY RIGHTS

11.1 Addition of Land. Upon the Recording of an instrument executed and acknowledged by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, including execution by the Owner of such land, the Association may, at any time and from time to time, add additional lands to the Property. Upon any such filing, such land will be considered part of the Property for purposes of this Declaration, and such added lands will be considered part of the Property subject to this Declaration and the terms, conditions, restrictions and obligations set forth in this Declaration, and the rights, privileges, duties and liabilities of the persons subject to this Declaration will be the same with respect to such added land as with respect to the lands originally covered by this Declaration. To add lands to the Property, a notice of addition of land must be Recorded and contain the following provisions:

(i) A reference to this Declaration, which reference will state the book and page numbers of the Hays County Real Property Records wherein this Declaration is recorded;

(ii) A statement that such land will be considered Property for purposes of this Declaration, and that all of the terms, covenants, conditions, restrictions and obligations of this Declaration will apply to the added land; and

(iii) A legal description of the added land.

11.2 Withdrawal of Land . Upon the Recording of an instrument executed and acknowledged by Members entitled to cast at least sixty-seven percent (67%) of the total number of votes of the Association, including execution by the Owner of such withdrawn land, the Association may, at any time and from time to time, reduce or withdraw from the Property, and remove and exclude from the burden of this Declaration and the jurisdiction of the Association any portion of The Property. Upon any such withdrawal and removal this Declaration and the covenants, conditions, restrictions and obligations set forth herein will no longer apply to the portion of The Property withdrawn. To withdraw lands from the Property hereunder, notice of withdrawal of land must be Recorded and contain the following provisions:

(i) A reference to this Declaration, which reference will state the book and page numbers of the Hays County Real Property Records wherein this Declaration is recorded;

(ii) A statement that the provisions of this Declaration will no longer apply to the withdrawn land; and

(iii) A legal description of the withdrawn land.

11.3 Notice of Plat Recordation . The Board may, at any time and from time to time, file a notice of plat recordation (a “Notice of Plat Recordation”). A Notice of Plat Recordation is Recorded for the purpose of more clearly identifying

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specific Lots subject to the terms and provisions of this Declaration after portions of the Property is made subject to a Plat. Unless otherwise provide in the Notice of Plat Recordation, portions of the Property included in the Plat identified in the Notice of Plat Recordation, but not shown as a residential Lot on such Plat, shall be automatically withdrawn from the terms and provisions of this Declaration (without the necessity of complying with the withdrawal provisions set forth in Section 11.2). The Board shall not have any obligation to Record a Notice of Plat Recordation and failure to Record a Notice of Plat Recordation shall in no event remove any portion of the Property from the terms and provisions of this Declaration.

[SIGNATURE PAGE FOLLOWS]

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EXECUTED to be effective on the date this instrument is Recorded.

:

PACESETTER HOMES, LLC,a Texas limited liability company

By: _________ Printed Name: _____________________________Title: ______________________________________

THE STATE OF TEXAS §§

COUNTY OF ____________ §

This instrument was acknowledged before me this ____ day of _______________, 2018, by _______________, _____________________ of Pacesetter Homes, LLC, a Texas limited liability company, on behalf of said limited liability company.

Notary Public Signature

(SEAL)

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

EXHIBIT “A”

PROPERTY DESCRIPTION

TRACT ONE: The Property made subject to the Original Declaration SAVE AND EXCEPT that parcel of land designated on the Plat as Lot “C-1”, comprised of approximately 16.0 acres; provided, however, that in the event any or all of that parcel of land designated on the Plat as Lot “C-1”, comprised of approximately 16.0 acres, is subdivided and intended to be used for residential purposes, the this Declaration shall automatically apply to such subdivided property.

TRACT TWO: La Ventana West

TRACT THREE: The Preserve at La Ventana, Phase One SAVE AND EXCEPT that certain 227.86 acre tract

TRACT FOUR: The Preserve at La Ventana, Phase Two

TRACT FIVE: The Preserve at La Ventana Phase Three

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

TRACT ONE

[ATTACHED]

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

TRACT TWO

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

TRACT THREE

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

SAVE AND EXCEPT:

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

TRACT FOUR

All that certain real property located in Hays County, Texas, more particularly described by the Final Plat titled “The Preserve at La Ventana, Phase Two” Recorded in Book 12, Pages 253-257 of the Official Public Records of Hays County, Texas.

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LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

TRACT FIVE

[ATTACHED]

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1

APPENDIX “A”

INCLUDE RELEASE AND SETTLEMENT AGREEMENT HERE

LA VENTANAAMENDED AND RESTATED

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS4823-2487-9949v.758700-1