Adoption of document retention policy

Hays County Liz Q. Gonzalez County Clerk San Marcos, Texas 78666 70201111029544 Instrument Number: 2011-11029544 As Recorded On: December 20, 2011 OPR RECORDINGS Parties: ELLIOTT RANCH HOMEOWNERS ASSOCIATION INC Billable Pages: 6 To Number of Pages: 7 Comment: ( Parties listed above are for Clerks reference only ) ** Examined and Charged as Follows: ** OPR RECORDINGS 36.00 Total Recording: 36.00 ★*★★★★★★★★★★ DO NOT REMOVE. THIS PAGE IS PART OF THE INSTRUMENT ***********★ Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law. File Information: Record and Return To: Document Number: 2011-11029544 Receipt Number: 291759 GREGORY S CAGLE Recorded Date/Time: December 20, 2011 01:38:10P 4330 GAINES RANCH LOOP STE 150 Book-Vol/Pg: BK-OPR VL-4245 PG-747 AUSTIN TX 78735 User / Station: S Breland - Cashiering #5 State of Texas County of Hays I hereby certify that this instrument was filed for record in my office on the date and lime stamped hereon and was recorded on the volunc and page of the named records ofHavsCounty, Tex85 LizQ.Gonzalez,CountyCLark

Bk Vo1 11029544 0PR 4245 748 OF THE ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. ADOPTING DOCUMENT RETENTION POLICY The undersigned, Koma Donworth, as the duly elected, qualified and acting Secretary of the Elliott Ranch Homeowners Association, Inc., a Texas nonprofit corporation (the " Association"), hereby certifies on behalf of the Association that the following resolutions were duly adopted by the Board of Directors of the Association (the "Board") at a meeting of the Board held on November 28, 2011, and that such preamble and resolutions have not been amended or rescinded and are in full force and effect on the date hereof. ADOPTION OF DOCUMENT RETENTION POLICY WHEREAS, Section 209.005(m) of the Texas Property Code (the "Code") provides that the Association must adopt and comply with a document retention policy that includes, at a minimum, the items specified in Section 209.005(m) of the Code; and WHEREAS, the Board desires to adopt such a document retention policy as required under Section 209.005(m) of the Code. NOW, THEREFORE, BE IT RESOLVED, that the Board hereby adopts the document retention policy set forth on Exhibit "A", attached hereto and incorporated herein by reference. BE IT RESOLVED, FURTHER, that, the Secretary of the Association is hereby authorized and empowered, in the name and on behalf of the Association, from time to time to do and perform all such further acts and things and to execute and deliver all such further instruments as he may deem necessary or advisable to carry out and effectuate the intent and purposes of the foregoing resolutions and of the actions referred to therein. BE IT RESOLVED, FURTHER, that any actions taken by the officers or directors of the Association prior to the date of this action or hereafter that are within the authority conferred hereby are hereby ratified, confirmed and approved as the act and deed of the Association. [SIGNATURE PAGE FOLLOWS] ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTIONPOLICY

11029544DPR 4245 749 IN WITNESS WHEREOF, the undersigned has executed this Certificate as Secretary on behalf of the Association to be effective as of January 1, 2012. By: Printed Name: Koma Donworth Title: Secretary STATE OF TEXAS COUNTY OF HAYS ember lo. 20 !L by Koma This instrument was acknowledged before me on Donworth, Secretary of Secretary of the Elliott Ranch Homeowners Association, Inc., a Texas non-profit corporation, on behalf of said non-profit corporation. L ma L A. TINA GUTIERREZ NOTARY PUBLIC Notary Public Signature State df Texns Comm. Exp. 07-07-2014 AFTER RECORDING PLEASE RETURN TO: Gregory S. Cagle 4330 Gaines Ranch Lo0p, Ste. 150 Austin, Texas 78735 ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTION POLICY

Vol EXHIBIT"A" 11029544 0PR 4245 750 DOCUMENT RETENTION POLICY 1. INTRODUCTION 1.1 Scope This Document Retention and Destruction Policy (this “Policy") applies to the Elliott Ranch Homeowners Association, Inc., a Texas non-profit corporation (the "Association"), the Association's manager (the “"Manager"), the Association's employees and the Association's Board of Directors (the "Board"). Documents and records maintained by the Association's legal counsel are not subject to this Policy. 1.2 Purpose This Policy is created to establish guidelines for identifying, retaining, storing, protecting and disposing of the Association's books, records and other documents in the Association's possession and to ensure that the Association adheres to legal and business requirements in an efficient and cost-effective manner. For purposes of this Policy, the term “Records" means any documentary material which is generated or received by the Association in connection with transacting its business or is related to the Association's legal obligations. The Records include, among others, writings, drawings, graphs, charts, photographs, tape, disc, audio recordings, microforms, and other electronic documents from which information can be obtained or translated such as electronic mail, voice mail, floppy disks, hard discs and CD ROMs. 1.3 Policy A. It is the Association's policy to maintain complete and accurate copies of Records. Records are to be retained by the Association for the period of their immediate use, unless longer retention is this Policy. B. Records that are no longer required, or have satisfied their recommended period of retention, are to be destroyed in an appropriate manner. C. Unless otherwise directed by legal counsel, Records may be scanned and maintained in an electronic format. D. The Manager, or in the event there is no Manager, the Association's Secretary, is responsible for ensuring that the Association's Records are identified, retained, stored, protected and subsequently disposed of, in accordance with the guidelines set forth in this Policy. 1.4 Board Members The Association does not require members of the Board to maintain any Records that were generated by the Association. However, if a Board member receives Records relating to the Association which were not generated by the Association or not received through the Association, the Board member must send the originals of such Records to the Manager or Secretary of the Association (as is applicable) to be maintained in the Association's books and records. When a Board member ceases to be a Board member, such Board member shall turn over to the Manager or the Secretary of the Association (as is applicable) all Records and files relating to the business of the Association which are not otherwise in the Association's books and records. ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTION POLICY

Vol P9 11029544 OPR 4245 751 1.5 Annual Purge of Files The Manager or Secretary of the Association (as is applicable) shall conduct an annual purge of files from the Association's books and records. The annual purge of files is to be conducted during the first quarter of each calendar year. 1.6 Destruction Procedure If the Records to be destroyed are of public record, it is recommended that they be recycled. If recycling is not possible, such Records may be placed in a trash receptacle. If the Records to be destroyed are not of public record, they should only be recycled if their confidentiality can be protected; otherwise, such Records should be destroyed in a manner that ensures the information contained thereon remains confidential. 1.7 Miscellaneous Copies of any Records may be destroyed, provided that an original is maintained in the Association's books and records or is otherwise not required to be maintained pursuant to this Policy. 1.8 Onset of Litigation At the onset of litigation, or if it is reasonably foreseeable that litigation may be imminent, all Records potentially relevant to the dispute must be preserved. At the direction of legal counsel, the Manager or Secretary of the Association (as is applicable) will advise the Board and any other person who may be in possession of Records of the matter and instruct them that all Records potentially relevant to such litigation must not be destroyed. At the conclusion of the litigation, as determined by legal counsel, the “hold' period will cease and the time periods otherwise provided in this Policy will recommence. 2. DOCUMENT RETENTION PERIODS Set forth below is a chart detailing the required retention periods for Records of the Association. Records are grouped into five functional categories as set forth below. For purposes of this Policy, the term "Permanent" means that the retention period for that Record is for the life of the Association, and the term “Termination" means expiration of the term of the applicable Record. For example: “Termination + 4 years" means four (4) years beyond expiration of the term of such Record. Accounting Records Retention Period Audit Reports Permanent Chart of Accounts Permanent Fixed Asset Purchases Permanent General Ledger Permanent Accounts Payable 7 yrs Account Receivable 7 yrs Expense Records 7 yrs Financial Statements (Annual) 7 yrs Inventory Records 7 yrs Loan Payment Schedules T yrs. 7 yrs Tax Returns ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTION POLICY Page 2

Vol 11029544 0PR 4245 752 2. Bank Records Retention Period Bank Reconciliations 7 Yrs Bank Statements 7 Yrs Cancelled Checks 7 Yrs Electronic Payment Records 7 Yrs 3. Governing Documents and Corporate Records Retention Period Articles or Certification of Incorporation, Bylaws, Declaration and other Restrictive Covenants, Permanent including any amendments Rules and Regulations Permanent Policies and Guidelines Permanent Record of Actions of Board or Members taken by Written Ballot or Written Consent in Lieu of a Permanent Meeting Record Meeting Notice Waivers Permanent Business Licenses Permanent Contracts -- Major Permanent Correspondence from Legal Counsel Permanent Leases/Mortgages Permanent Board Minutes and Resolutions 7 Yrs Committee Minutes 7 Yrs 7 Yrs Member Meeting Minutes Contracts - Minor Termination + 4 Yrs Insurance Policies Termination + 4 Yrs Account Records of Current Association Members 5 Yrs 4. Employee Records Retention Period Benefit Plans Permanent Pension/Profit Sharing Plans Permanent Employee Files (ex-employees) 7 Yrs Employment Taxes 7 Yrs Payroll Records 7 Yrs Employment Applications, Resumes, Ads, or Notices 3 Yrs for Job Opportunities 5. Real Property Records Retention Period Construction Records Permanent Warranties Permanent Leasehold Improvements Permanent Real Estate Purchases Permanent Lease Payment Records 7 Yrs ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTION POLICY Page 3

Vo! 11029544 OPR 4245 753 ELLIOTT RANCH HOMEOWNERS ASSOCIATION, INC. DOCUMENT RETENTION POLICY Page 4