To: All Sonterra Residents

From: Sonterra Board of Directors

Please take note of the policy published below, adopted by the Sonterra Board of Directors on February 19, 2004, and recorded in Bexar County in Book 10596, Page 1778 which addresses rules for Sonterra and penalties for violation of those rules.

The following policies have been adopted by the SONTERRA PROPERTY OWNERS ASSOCIATION, INC. (the “Association”):

Whereas, certain policies concerning covenant violations related to properties located within the Sonterra subdivision (“Sonterra”) were adopted effective January 22, 1999, by the Board of Directors of Sonterra under its authority to adopt rules and regulations regarding the use of the properties located within Sonterra and subject to the Declaration of Covenants recorded at Volume 3418, Page 1980, Real Property Records of Bexar County, Texas, as amended from time to time (the “Declaration”);

Now Therefore, the Board of Directors of Sonterra has duly adopted the revised policies as set out herein.

1. General Rules. Each owner and resident of Sonterra is subject to the following rules and regulations:

a. Parking Restrictions. No parking of any vehicle owned, leased or otherwise in the possession and/or control of an owner or resident is allowed on any private streets within Sonterra at any time. The Association may post signs in neighborhoods throughout Sonterra under Chapter 684 of the Texas Transportation Code notifying owners that any vehicles parked in violation of this prohibition may be towed.

b. Maximum Speed. Unless otherwise posted, no vehicle shall exceed the speed of 25 miles per hour on any private street within Sonterra.

c. Licensed Drivers. No one without a valid Texas Driver’s License or license issued by another jurisdiction recognized as valid under Texas law may operate any motorized vehicle including, without limitation, any golf cart, on any private street within Sonterra.

d. Decals. All vehicles owned, leased or otherwise in the possession and/or control of an owner or resident must display at all times Sonterra decals in the upper corners of both the front windshield and rear window on the driver’s side of the vehicle.

e. Pet Droppings. Each owner and/or resident must dispose of any droppings left by such owner’s and/or resident’s pet on any property located within Sonterra other than on owner’s and/or resident’s lot.

f. Maintenance. All improvements and landscaping within Sonterra shall be maintained at a level that is harmonious with the neighborhood in which the property is located as determined by the Sonterra Architectural Review Committee (the “ARC”).

g. Trash. No trash, trash containers or recycle bins may be placed in front of the residence sooner than 6:00 p.m. on the day prior to the scheduled pick day and all empty containers must be removed and stored out of sight of the street by 6:00 p.m. on the day of trash pick-up, or until 9:00 p.m. that same evening if scheduled pick up has not yet occurred for that day.

f. Golf Cart Access Gates. These access gates are strictly for access by privately owned golf carts or those with permits and only under an accommodation made between the Association and The Club at Sonterra. This accommodation is subject to suspension or revocation by The Club at Sonterra if cited for repeated violations of either the Club Rules or ASSOCIATION’s rules & covenants. It is therefore important that all members comply with these restrictions. All golf carts accessing the gates must be “permitted” by the Association. Other than a “permitted” golf cart, no persons walking, running, or using any other form of locomotion, such as bicycles, scooters, skates, skateboards, are allowed to use these access gates. Owners of the golf carts using these access gates must securely close and lock the gate after passing though the gate. Vandalism of any gate will not be tolerated.

h. Registration of Real Estate Agent/Brokers. In order to gain access to any neighborhood within Sonterra, all realtors and real estate brokers must be registered with the Association, listed by the owner as a guest, or granted access as a result of approval given by a resident when contacted by security personnel. Failure in abidance of any of these requirements is grounds for denying access but will not be subject to any fines or other penalties.

2. Other Rules, Restrictions. The rules and regulations contained in paragraph 1 are in addition to, and not in substitution of, all other applicable rules and regulations or any applicable restrictive covenants, all of which remain in full force and effect.

3. Violation Policy and Penalties. Violation of any of the restrictive covenants, rules, regulations, policies or governing documents of Sonterra or of any applicable neighborhood within Sonterra; any violation of the covenants and provisions of the First Amended and Restated Stone Oak Master Plan (the “Stone Oak Master Plan”) recorded in Volume 4361, Page 620, Real Property Records of Bexar County, Texas, as amended from time to time, which are applicable to Sonterra; and any violation of any policies, rules and regulations of the Stone Oak Planned Community which are applicable to Sonterra by an individual owner or resident shall result in the following actions and penalties:

a. First Violation – a warning will be issued in writing to the owner and, if known to the Association, to the resident of the property. The warning, which may be in the form of either a ticket or a letter, shall contain all required statutory notices including, without limitation, the notice required under the Texas Residential Property Owners Protection Act, Texas Property Code Section 209.006, as it may be amended from time to time.

b. Subsequent Violations – owners and residents will be subject to the following penalties for any subsequent violations:

(i) Non-Continuing Violations. For speeding, driving without a valid license, failure to remove pet droppings, and other non-continuing violations re-occurring within six (6) months of the First Violation:

(iii) Continuing Violations. For failure to obtain ARC approval, failure to maintain improvements as required, and other continuing violations:

(iv) Parking Violations. For vehicles parked in violation of the parking restrictions within six (6) months of the First Violation:

* Thereafter, the vehicle may be towed. The owner and/or resident will need to contact the towing company shown on the posted towing signs to retrieve the towed vehicle.

4. Penalties Responsibility of Owner. All monetary penalties will be billed to the owner’s account and will be payable by the owner to the Association within 30 days of the date of billing.

5. Penalties Cumulative. All penalties shall be cumulative but the total amount fined will not exceed $1,000.00 during the six (6) month period following the First Violation. If the violation continues for more than six (6) months or reoccurs after the end of a six (6) month period, such violation shall be subject to an additional $1,000.00 cap for each subsequent six (6) month period.

6. Non-Exclusive Remedies. The imposition of the monetary penalties provided herein shall not be construed to be an exclusive remedy, and shall be in addition to all other rights and remedies to which the Association may otherwise be entitled including, without limitation, the filing of an Affidavit of Non-Compliance in the Real Property Records of Bexar County, Texas, and/or the initiation of legal proceedings seeking injunctive relief and/or damages, attorneys fees, costs of court and all other remedies, at law or in equity, to which the Association may be entitled.

7. Violation by Resident, Tenant, or Agent. A violation by a resident, tenant, guest, or agent of the owner shall be treated as a violation of the owner of the property. All monetary penalties shall be billed to the owner.

8. Courtesy Notice. For less severe violations, the Association may provide the owner and, if known by the Association, the resident, a courtesy notice and request for compliance within a specified time prior to initiating the notice procedure contained in paragraph 3.

This policy was duly adopted by the Board of Directors of the Sonterra Property Owners Association, Inc., on the 19th day of February, 2004.