1. Chapel Hill II, Phase I Homeowners’ Association DeSoto, TX

2. Purpose Chapel Hill II, Phase I HOA was established to maintain the community of Chapel Hill in the following ways: Networking - Meeting neighbors from each phase of the community. Information Gathering/Sharing - Keeping abreast of the news that directly affects you and the neighborhood. Partnerships - Partnering with the city on issues impacting the neighborhood. Neighborhood Beautification - Creating and maintaining Safety/Crime Watch - Ensures Chapel Hill is a safe community Organizing block parties and other special events

3. Operation of the Board Board Structure The HOA is managed by a Board of 9 directors. 3 directors serve a term of 1 year, 3 directors serve a term of 2 years, 3 directors serve a term of 3years Nominations - Election to the Board Nominations for election to the Board are made by the nominating committee. Nominations may also be made from the floor at the annual meeting. Members or their proxy may cast votes, in respect to each vacancy. The persons with the largest number of votes shall be elected. Vacancies A vacancy in any office may be filled by the Board.

4. Our Commitment We will provide a timely response to items of concern to our members; We will keep you informed regarding public policies and other essential information which will affect our Associations interest and those of the community as a whole; We are committed to honesty, fairness, providing a safe environment for our neighborhood and respecting the dignity due everyone. We are committed to observing sound business practices and to act as concerned and responsible neighbors, reflecting all aspects of good citizenship. We will conduct our business in accordance with all applicable laws and regulations.

5. 2006 Board Members Agnes DouglasPresident David ThomasVice-President Shaunterra KirkwoodSecretary Ray HodgesTreasurer Cynthia Brown Arthur Hobbs Vera Hobbs Roderic Steele

6. Operating Agreement Chapel Hill II, Phase I and Chapel Hill HOAs entered into the following operating agreement May 24, 2006. Each Board will maintain its own existence Expenses/maintenance and up-keep associated with the common entry way will be spilt 50/50. The following committees will work as one to better serve the Chapel Hill Community: Crime Watch Beautification Communication Welcome and Hospitality All common expenses will be split 50/50. Both boards must agree prior to making purchases. *Upon establishing Chapel Hill II, Phase II HOA, all 3 boards of the Chapel Hill Community will begin discussion of consolidating to one working board.

7. Chapel Hill Committees Architectural Ensure builder(s) and residents comply with city codes and the look of the community Beautification Enhances the appearance and beauty of Chapel Hill’s entry way(s) Provides maintenance and repair of the common walls, sprinkler systems, and lighting Communication Improves communication between the Board and the homeowners Shares information throughout the community Crime Watch Ensures Chapel Hill is a safe community Welcome/Hospitality Welcomes new homeowners to the community Plans social activities Fundraising Coordinates community activities to raise funds for the general account

8. Budget The assessments levied by the HOA are used to promote recreation, safety and welfare of the residents, and maintenance of the Common area.

9. Homeowner’s Dues Current Dues are $50/year Payable within 30 days after receiving invoice Homeowner’s dues are the sole source of revenue Dues are mandatory* *See Bylaws Article X1, pg 9

10. 2006 Meeting Dates August 25Board Meeting August 26Special Call Meeting all homeowners September 22Board Meeting October 27Board Meeting October 28General Meeting all homeowners November 11Board Meeting December 9Board Meeting

11. Methods of Communication Information will be communicated through the following methods: E-mail ~ All residents are requested to provide primary e-mail Chapel Hill Website ~ Up to date information will be placed on the HOA website http://www.ci.desoto.tx.us/HOA_Chapel_Hill.htm Entry was signs ~ Signs will be placed at all entrances prompting residents to refer to the website or email for significant happenings. * An alternate method of communication will be substituted upon request.