The Springs At Stone Oak

Settlement Agreement With New Adjacent Subdivision

Jun 24, 2005

From Joan K, the Springs rep on the Stone Oak POA Advisory Committee:

This month I received a copy of the Settlement Agreement entered into between Stone Oak Property Owners Association, Inc. (SOPOA) and Gordon V. Hartman Enterprises, L.P. and Gordon Hartman Homes, Ltd. (Hartman). Upon receipt of the agreement I furnished our HOA President, Jack Suffield with a copy.

Hartman sold the property to McMillin Texas Development, LLC (McMillin), who has agreed to assume a part of the responsibilities of Hartman.

The agreement included that by June 25th, 2005 that McMillin will plant thirty-nine (39) Live Oak trees which are a minimum of four (4") caliber measured at four and one-half feet (4'1/2") above ground after planted in the back of lots 17 through 37. McMillin will be responsible for appropriate watering of the trees until the lot is conveyed to a new owner. McMillin will have no further obligation or responsibility relative to the survival of the trees, however the nursery from which the trees are purchased offers a one-year limited warranty.

McMillin will, by covenant impose restrictions on those lots to preserve and maintain those trees.

McMillin will deed the Greenbelt to the Villages at Stone Oak POA to take reasonable steps to maintain all trees in the greenbelt. The deed will further provide that SOPOA has equal standing to enforce the covenant.

Note: I have not copied this agreement verbatim. Only portions that are pertinent and informative.

Also, It is my understanding that McMillin is being required to build a fence along the lot line that is the ten (10) feet back from the Springs lot line and that the area (Greenbelt) also must be maintained by McMillin and subsequently the new home owners.

Joan