such Tract Owners shall determine and in accordance with the Bylaws of the Homeowners Association.

COMMON AREAS. Common Areas shall mean all real property (including the improvements thereto) designated on the Plat(s) of the Property or by the Developer for the common use and enjoyment of the Owners, whether in existence at the time of the execution of this Declaration, or which may be added at any time in the future, including but not limited to the Common Areas shown in the subdivision plat or map recorded in Volume . 2 - • , Page 197-200 of the Plat Records of Gillespie County, Texas, as amended from time to time. By way of illustration, Common Areas may include, but not necessarily be limited to, the following:

signs, street medians, recreation areas, landscaping, lighting, entrance signs, walls, bridges, trails, green belts, mail boxes, and other similar or appurtenant Improvements.

DEVELOPER. Developer as used in these Restrictive Covenants shall refer to HILLS OF SEVEN FALLS, LLC, its heirs, successors, or assigns.

HOMEOWNERS ASSOCIATION. Homeowners Association shall mean and refer to an incorporated association consisting of all Owners, which shall have the duties hereinafter set forth. Each Owner of a Tract shall become a member of the Association contemporaneously with acquiring a Tract, without any further documentation of any kind. The Owners shall be members of the Homeowners Association. Each Owner of a Tract including Developer, shall automatically be a member of the Association. Association membership shall be appurtenant to ownership of a Tract Association membership shall only be transferred upon the conveyance of a Tract in fee by an Owner and membership shall not be assigned, pledged, or transferred in any other way. Any attempt to make a transfer prohibited hereby shall be void. The Association may be incorporated as a nonprofit corporation. The Association shall be managed by the Board pursuant to the procedures set forth in the Association’s Articles of Incorporation and Bylaws, subject to the provisions of these Restrictive Covenants. Each Owner shall have one vote for all of the land owned by such Owner, e.g., if an Owner owns several Tracts such Owner shall have only one vote except that Developer shall have two (2) votes for each Tract owned by the Developer as provided in the Articles and Bylaws of the Association. All owners of undivided interests in any Tract shall be considered as a single Owner for the purposes of exercising voting rights hereunder with the designated “voter being authorized in writing by a majority of such Owners. Meetings shall be as set forth in the Bylaws of the Homeowners Association. Notwithstanding any contrary provision contained herein, until such Bylaws are enacted or the Developer has conveyed to third parties 65% of the acreage or platted lots, whichever shall last occur, Developer shall appoint the Directors and Directors need not be members of the Association. The Association shall have the powers and duties specified in the Articles and Bylaws of the Homeowners Association.

OWNER. Owner or Owners shall, mean a person or persons, entity or entities, including Developer, holding a fee simple interest in any portion of the property. Owner shall not include any lien holder, secured party, mortgagee, lessee, invitee or guest, but even though an Owner may lease a Tract or permit lnvitees or guests, and may delegate to each tenant, Invitee or guest, the right and easement of use and enjoyment in and to the Common Areas, such parties and such use and enjoyment by such parties shall be subject to, and as provided in, the provisions of these Restrictive Covenants, and any lease or agreement shall provide that the terms thereof shall be subject in all respects to the provisions of these Restrictive Covenants and any failure by the lessee, invitee or guest to comply with the terms and provisions of these Restrictive Covenants shall be and constitute a default under such lease or agreement and shall

2