ARTICLE III, THE EXECUTIVE BOARD

3.1 Number and Qualification. The Executive Board shall be comprised of the
Executive Officers, Chairpersons of the Architectural Control Committees for
Sections 1, 2, 3, and 4, and the Chairpersons of all Standing Committees. The
Executive Board shall be authorized to act when a quorum of the Executive Board
is present. A Quorum of the Executive Board shall mean the presence of thirtyeight
percent (38%) or more of the Executive Board, and the acts of the majority of
the Executive Board Members present at a meeting at which a quorum is present
shall be the acts of the Association's Executive Board.

3.2 Powers and Duties. The Executive Board shall have the powers and duties
necessary for the operation and maintenance of the Common Area (entrance to
the Neighborhood at Spicewood Springs and Scotland Well, as well as any other
common areas) and the administration of the other responsibilities and affairs of
the Association, as defined in the approved budget.

3.3 Other Powers and Duties. The Executive Board shall have the following
additional duties:
(a) To administer and enforce the covenants, conditions, restrictions, uses,
limitations, obligations and other provisions of the Declaration.
(b) To establish and enforce rules, conditions, restrictions, limitations and other
provisions necessary for the orderly operation, use and maintenance of the
Common Area. (A copy of such rules shall be delivered or mailed to each
Member promptly upon the adoption thereof).
(c) To keep in good order, condition and repair the Common Area and all items of
personal property used in the enjoyment of the Common Area, except for the
Mountain View Park and related facilities which are maintained by the City of
Austin.
(d) To fix, levy and collect any fees and fines to be paid by any Member in violation
of a covenant of the Association, in accordance with the terms of the
Covenants as amended from time to time. All fines or other assessments shall
be in itemized statement form and shall set forth in detail the various expenses
for which the Assessments are being made.
(e) To collect delinquent fines or assessments by suit, lien foreclosure (as provided
in the Declaration) or otherwise and to enjoin or seek damages from an Owner
for violation of the Covenants.
(f) To protect and defend the Common Area from loss and damage by suit or
otherwise.
(g) To establish a bank account for the common treasury for all separate funds
which are required or may be deemed advisable by the Executive Board.
(h) To maintain complete and accurate books and records showing all of the
receipts, expenses or disbursements and to permit examination thereof at any
reasonable time by each of the Members. The Association shall cause to be
prepared and delivered annually to each Member a statement showing all
receipts, expenses or disbursements since the last such statement. Such
financial statements shall be available to any Member, on request, within 90
days following the fiscal year end of the Association. Any Member may require
that the Association cause to be prepared and delivered, at such Member’s
expense, an audited financial statement of the Association. In addition, each
member shall have the right to inspect the books and records of the
Association upon five (5) calendar days request.

3.4 Vacancies. Vacancies on the Executive Board shall be filled by vote of the majority
of the remaining Executive Board Members, even though they may constitute less
than a quorum. Each Executive Board Member so elected shall serve out the
remaining term of his/her predecessor.

3.5 Regular Meetings. Regular meetings of the Executive Board may be held at such
time and place as shall be determined, from time to time, by a majority of the
Executive Board Members, but at least three such meetings shall be held during
each fiscal year. Meetings of the Executive Board shall be open to the Members.
The Executive Board shall provide Members with an agenda and written guidelines
for the manner in which the meeting shall be conducted. The Executive Board will
designate a forum during the meeting in which Members may be allowed to make
comments concerning topics before the Executive Board. Notice of regular
meetings of the Executive Board shall be given to the Members by electronic mail
at least seven (7) days prior to the day named for such meeting.

3.6 Special Meetings. Special meetings of the Executive Board may be called by the
President or Secretary, or upon the written request of at least two Executive Board
Members. The President or Secretary will give notice to each Executive Board
Member of the time, place (as hereinabove provided) and purpose of the meeting,
by electronic mail at least seven (7) days prior to the day named for such meeting.
Special Meetings of the Executive Board shall also be open to the Members.
Notice of special meetings of the Executive Board shall be given to the Members
by electronic mail at least seven (7) days prior to the day named for such meeting.

3.7 Order of Business. The order of business at all meetings of the Executive Board
shall be as follows:
(a) Roll call.
(b) Proof of notice of meeting or waiver of notice.
(c) Approval of minutes of preceding meeting.
(d) Reports of officers.
(e) Reports of committees.
(f) Unfinished business.
(g) New business.