Code: Deletions lined through

Additions in red from committee, in purple from individual residents

Comments in green

Specifically need legal advice both for increased understanding and clarity.

DRAFT #3.0 – Changes Suggested by Individual Residents

This draft makes “meaningful and substantive” changes to DRAFT 2.1 of the Master Plan and CC&Rs. DRAFT 2.1 edited the original document for the purpose of better readability. Amendments were incorporated, Exhibits and CC&R Attachments were condensed, provisions were made compliant with current law and practice, redundancies removed, and paragraphs moved and labeled for better readability. NO CHANGES IN MEANING were made in the second draft. All drafts are posted under the Master Plan Committee tab on the Kestrel website (

A work in progress, DRAFT 3 addresses those “meaningful and substantive” changes to the document voiced by substantial numbers of Kestrel lot owners. Changes proposed are current as of the date posted below. Changes will continue to be made (including administrative “housekeeping” changes) until the final draft is presented to Units 1 and 2 for a formal vote.

2/14/15Master Plan Draft with changes as directed at the open meeting.

Declaration of Revised Master Plan

For Kestrel Air Park Subdivisions

Comal County, Texas

V 3.0

MASTER PLAN AND DECLARATION

TABLEOFCONTENTS

RECITALS______Page 1

ARTICLE I.

DEFINITIONS______Page 2

ARTICLE II.

USE OF LOTSINUNITS1 AND 2______Page 4

ARTICLE III.

RIGHTSTHROUGHTHESUBDIVISONS______Page 5

ARTICLE IV.

INGRESSAND EGRESS,AND OTHER EASEMENTS______Page 6

ARTICLE V.

ASSOCIATIONS______Page 7

ARTICLE VI.

ARCHITECTURAL CONTROL COMMITTEE______Page 11

ARTICLE VII.

BOARD OF DIRECTORS______Page 13

ARTICLE VIII.

GENERALPROVISIONS______Page 16

EXHIBITS - “A” and “B” (Chart of lot & block numbers, categories and voting units)

ATTACHMENT Covenants, Conditions and Restrictions (CC&Rs)

V 3.0

ii

DECLARATION OF REVISED MASTER PLAN

FOR KESTREL AIR PARK SUBDIVISIONS

COMAL COUNTY, TEXAS

DECLARATION

This is the Master Plan and Declaration for the management of KestrelAir ParkUnit 1 Residential Subdivision and KestrelAir ParkUnit 2 CommercialSubdivision, filed by the Kestrel Owners Associations of Units 1 and 2 whose address is 150 Flightline Drive, Spring Branch, TX 78070.

RECITALS

A.Objective. This Master Plan specifies the covenants, conditions, restriction, easements, charges and liensunder which Unit 1 and Unit 2 Subdivisions will operate.

B.Property covered by Master Plan and Declaration. Kestrel Air Park contains two separate Subdivisionsand an air park: Unit 1 being substantiallyresidential lots in nature and Unit 2 being commercialin nature. The lots within Unit 1 are listed by lot and block number, category of lot and number of voting units on Exhibit“A”that is attached. The lots within Unit 2 are listed by lot and block number, category of lot and number of voting units on Exhibit “B” thatis attached.

C.Kestrel Air Park Environment. The development of the subdivisions also includes an airstrip, with its related runway, taxiways, hangar areas, fuel areas and other related activities, as an essential feature ofKestrel Air Park.the Subdivisions, which aviation uses are to be encouraged. The Subdivisions have been created in order to provide an environment compatible with such aviation oriented activities, whichactivities shall beconsidered as favorable to the welfare of the Subdivisions; Describing the airstrip as “essential” establishes its importance.

D.Classes of Lots. Lot 1, Block 1 and Lot 1, Block 2 in Unit 1 are Commercial Lots governed by the covenants and restrictions set forth in the Attachment. Lot 1, Block 9, of Unit 1 is to be dedicated for use as the airstrip. Lot 1, Block 10, of Unit 1 is the lot set aside and dedicated as a private street (Flightline Drive). Lots 2 and 3, Block 10, of Unit 1 are Common Areas of Unit 1. There are two types of residential lots within Unit 1, those residential lots which adjoin the airstrip (designated as Air Park Residential Lots) and those residential lots that are not adjacent to the airstrip (designated General Residential Lots). There two types of commercial lots with Unit 2, the Commercial Hangar Lot and the General Commercial Lots;

EAssociations for Management of Common Areas and Limited Common Areas. Three associations have been created and separately incorporated for the management of the Common Areas. The first such entity is the Kestrel Unit 1 Property Owners Association, assigned the powers of maintaining and preserving the private streets and other Common Areas (other than the airstrip) associated with Unit 1, collecting and disbursing the assessments and charges hereinafter created relating to Unit 1. The second entity is the Kestrel Unit 2 Property Owners Association, assigned the powers of maintaining and preserving the private streets and other Common Areas associated with Unit 2, collecting and disbursing the assessments and charges hereinafter created relating to Unit 2. The third entity is the Kestrel Air Park Runway Association (KAPRA), assigned the powers of maintaining and preserving theairstrip, including the runway, taxiways and other Limited Common Areas associated with the same, being responsible for enforcing the rules and regulations relating to the use of the airstrip, collecting and disbursing the assessments and charges hereinafter created relating to those lots whose owners are members of such third association;

THEREFORE, the Kestrel Property Owners Associations of Units 1 and 2 hereby declare that all lots within the two Subdivisions are and shall be held, transferred, sold, conveyed and occupied subject to the covenants, conditions, restrictions, easements, charges and liens hereinafter set forth.

ARTICLE I.

DEFINITIONS

1.1Definitions. As used herein, the following words, terms and phrases shall have the meanings ascribed and given to them, as follows:

(a)Aircraft Broker. Aircraft Broker shall mean a person or entity who has on their lot for sale one or more aircraft either on consignment or owned by them, registered as a business and based at Kestrel Air Park, whose principal business is aircraft sales. The Board of Directors of KAPRA shall have the sole and exclusive authority to classify owners as Aircraft Brokers using documentation specified by the KAPRA BOD.From KAPRA Amendment passed 10/14.

(a)Air Park. “Air Park”shall mean the private airfield, including the runway, taxiways and other Limited Common Areas associated with the same located on Lot 1, Block 9 in Unit 1 being designated on Exhibit “A” as the “Category ‘E’ Lot”; Redundant, see “Air Strip”

(b)Airstrip Residential Lots. “Airstrip Residential Lots” shall mean those lots adjacent to the airstrip, being Lots 1 through 19, inclusive, Block 7, Unit 1 and Lots 1 through 7, inclusive, Block 8, Unit 1 as designated on Exhibit “A” as “Category ‘A’ Lots”;

(c)Airstrip. “Airstrip” shall mean the runway,and taxiways and other Limited Common Areas associated with the same located on Lot 1, Block 9 of Unit 1 being designated on Exhibit “A” as the “Category ‘E’ Lot”; Eliminates confusion between “Air Park,” “Airstrip” and “Kestrel Air Park.”

(d)Architectural Control Committee (ACC). ACC shall mean a committee, consisting of five (5) members. Members from Unit 1 and KAPRA must be lot owners. Members from Unit 2 must be a lot owners or their representatives. who need not be owners, toThe ACC shall review, approve or disapprove all plans and specifications for residential and commercial buildings, hangars or other improvements upon the property and enforce the covenants, conditions and restrictions contained in this Declaration;Reason for change:Kestrel is now essentially built out and there are enough owners to staff this committee. Current sentiment is that we are best served by ACC members who have a vested interest in Kestrel.

(e)Commercial Hangar Area Lot. “CommercialHangar Area” or “Commercial Hangar Area Lot” shall mean the lot designated on Exhibit “B” as the “Category ‘C’ Lot”;Defines Lot 1, Block 1, Unit 2.

(f)Common Areas. “Common Areas” shall mean the private streets and other common areas for use of the owners of the respective Subdivisions, being the lots designated on Exhibits“A”and “B” as “Category ‘F’ Lots”;

(g)Covenants, Conditions and Restrictions (CC&Rs). “CC&Rs” are standards and requirements cited in the Attachment that are applied to property in Units 1 and 2 and the air park; Clarification, the airstrip is owned by KAPRA but is and always has been platted into Unit 1

(h)Declarant. “Declarant” shall meanoriginally meantKNOWLTON PROPERTIES, LTD., a Texas limited partnership, its successors and assigns who are designated as such by Declarant, and who consent in writing to assume the duties, responsibilities and obligations of Declarant with respect to Lots acquired by such successor or assign; (Left in the document for historical purposes.) It correctly identifies the original developer. “Declarant” shall mean the Kestrel Owners Associations of Unit 1 and Unit 2 as recognized and incorporated by the State of Texas;Subsequently as the lots were sold, Declarant” responsibilities and duties were assumed by the Kestrel Owners Associations of Unit 1 and Unit 2. For greater clarification, should KAPRA be to added Unit 1 and Unit 2 Associations in this definition?

(i)General Commercial Lots. “General Commercial Lots” shall mean those lots designated on Exhibits “A” and “B” as “Category ‘D’or ‘G’ Lots”; See Exhibits

(j)General Residential Lots. “General Residential Lots” shall mean all lots in Unit 1 designated as residential lots, other than thelots adjacent to the airstrip,and being designated on Exhibit “A” as “Category ‘B’ Lots”;

(k)Kestrel Air Park. “Kestrel Air Park” shall mean the public name of the community that includes Subdivision Units 1 and 2 and the airstrip.

(l)Kestrel Air Park Runway Association (KAPRA). “KAPRA” shall mean the associationincorporated and assigned the powers of maintaining and preserving the airstrip and the Limited Common Areas associated with the airstrip;

(m)Kestrel Unit 1 Property Owners Association. “Kestrel Unit 1 Property Owners Association”(KAP 1 POA) shall mean the non-profit association, Kestrel Air Park Unit 1 Property Owners Association, incorporated and assigned the powers of maintaining and preserving the private streets and other Common Areas associated with Unit 1;

(n)Kestrel Unit 2 Property Owners Association. “Kestrel Unit 2 Property Owners Association"(KAP 2 POA) shall mean the non-profit association, Kestrel Air Park Unit 2CommercialProperty Owners Association, incorporated and assigned the powers of maintaining and preserving the private streets and other Common Areas associated with Unit 2;

(o)Limited Common Areas. “Limited Common Areas” shall mean the airstrip;

(p)Open Areas. “Open Areas” shall mean the airspace and those terrestrial areas of the Limited Common Areas adjacent to the airstrip designated by KAPRA to be generally covered with grass or other approved landscape materials and kept free of any obstruction that could impede movement and operation of aircraft;

(q)Owners. “Owners” shall mean individuals and entities who hold record title, in fee simple, to lots within the Subdivisions, including contract sellers, but excluding those having an interest merely as security for the performance of an obligation;

(r)Property. “Property” shall mean all real property comprising the Subdivisions;

(s)SafetyZones. “Safety Zones” shall mean those areas of Limited Common Areas designated by KAPRAto be covered by separate rules and regulations regarding the use and safe operation of aircraft, motor vehicles, equipment and other property within theairstrip;

(t)Subdivisions. “Subdivisions” shall mean the two Kestrel Air Park Subdivisions according to the Unit 1 and Unit 2 Plats;

(u)Taxiways. “Taxiways” shall mean those areas of the Limited Common Areas designated by KAPRA for taxiing aircraft and ingress and egress by motor vehicles;

(v)Unit 1 Plat.“Unit 1 Plat” shall mean the plot of Kestrel Air Park Unit 1 Subdivision recorded at Volume 12, Pages 314-316, inclusive, Map Plat Records of Comal County Texas;

(w)Unit 2 Plat.“Unit 2 Plat” shall mean the plot of Kestrel Air Park Unit 2 Commercial Subdivision recorded at Volume 12, Page 317, Map Plat Records of Comal County, Texas;

(x)Voting Unit(s). “Voting Units” shall mean the number of Association votes assigned to the lot owners in accordance with Exhibits “A”and “B”.

ARTICLE II.

USE OF LOTS IN UNITS 1 AND 2

2.1.Use of Lots. The lots within each Unit are divided into several categories. The lot is subject to this Declaration and restricted to those uses, purposes, CC&Rs allowed for the category to which each such lot has been designated.

2.2Unit1. Substantially all of the lots within Unit 1 are restricted to single family residential use. The residential categories of these lots are Airstrip Residential Lots and General Residential Lots. In addition to the CC&Rs contained herein, the lots within Unit 1 are also restricted for use, as follows:

(a)AirstripResidential Lots. Once a single family residential dwelling has been constructed and occupied on an Airstrip Residential Lot (Category ‘A’), the owners may provide for the use, parking and storage of aircraft on such Airstrip Lots, so long as such aircraft are kept overnight in an enclosed hangar meeting the criteria set forth on theAttachment; No portion of any such aircraft may be parked within 35 feet of the pavementof a taxiway. Each Air Park Lot owner who constructs an aircraft hangar must maintain anobstruction-free open area 35 feet wide adjacent to and parallel with pavement of the taxiway;Reason: This language duplicates CC&R 6 (d) and is better placed in the CC&Rs.

(b)General Residential Lots. The lots within Unit 1 designated as Category ‘B’ Lots shall be constructed and used solely as single-family residential dwellings;

(c)Commercial Lots. Two lots within Unit 1 are designated as Category ‘D’or ‘G’Lots, maintained, owned and operated as commercial lots. The owners of the commercial lots within Unit 1 shall be members of the Kestrel Unit 1 Property Owners Association and follow the CC&Rs for Category ‘D’, General Commercial Lots. See Exhibits Code for explanation.

2.3Unit 2. The categories of lots within Unit 2 are the Commercial Hangar Area Lotand the General Commercial Lots. In addition to this Declaration and the CC&Rs contained in the Attachment, the lots within Unit 2 are also restricted for use as follows:

(a)Commercial Hangar Area Lot. The lot within Unit 2 designated as the Category ‘C’ Lot is reserved for configuration of hangars, aircraft tie down areas,auxiliary parking and access ways;

(b)Commercial Lots. The lots within Unit 2 designated as Category ‘D’ Lots shall be maintained, owned and operated as a commercial area.

2.4.Limited Common Area – Airstrip.The airstrip is hereby restricted for development and use as an airstrip for private and commercial aircraft. and t The portions of the airstrip designated for taxiways, open areas and safety zones shall be determined,maintained and used by KAPRA solely for such purposes. Such areas shall be “Limited Common Areas”, the use of which shall be limited to the members of KAPRA and their guests and invitees as well as airplane owners who pay the KAPRA access fee. Personal use of the airstrip for ‘touch and go’or ‘land and taxi-back’operations is permitted only forowners of airplanes stored on Kestrel Air Park owners of Air Park Residential Lots or owners of planes stored on the Hangar Lot, as well as for members of their immediate families who reside in the same householdwith such a member. Commercial, fee, or for-profit flight instruction or training in take-off or landing techniques is expressly prohibited unless the person receiving the training is a member of KAPRA or paying KAPRA access fees. Conducting ‘touch and go’ exercises as part of flight instruction using the airstrip by persons or entities for any means of profit is prohibited.Nothing contained herein shall prohibit the operation of a flight school on the premises of the Commercial Hangar Area Lot and the use of the airstrip for the same, provided all flight activities other than the initial take off and the final return are conducted at a location other than the airstrip. Clarifies who may use to airstrip for ‘touch and go’ or ‘land and taxi-back’ activities. This was 2.3 in the original document and also Amendment 3…what’s the clearest language.

2.5General Common Area. Lot 1, Block 10 of Unit 1 (Flightline Drive)and Lot 1, Block 3 of Unit 2 (Kestrel Drive), consideredthe General Common Areas, areintended for use as a private street system.Such private streets in Unit 1 are maintained by the Kestrel Unit 1 Owners Association and such private streets in Unit 2 by the Kestrel Unit 2 Owners Association.

2.6Mailboxes. All mailboxes on the property shall conform to the requirements and be located as directed by the United States Postal Service. The ACCmay, subject to the requirement of the United States Postal Service, further specify the location design and appearance of all mailboxes.

ARTICLE III.

RIGHTSTHROUGHTHE SUBDIVISION

3.1.Ingress, Egress, Easements. The Kestrel Unit 1 Owners Association shall have the right to grant easements for ingress and egress over and across Flightline Drive,including but not limited to an easement in favor of all owners of real property in the Ahern Creek Ranches Subdivisions, Comal County, Texas and their guests and invitees.The Association, in its sole discretion, may assign the foregoing right at any time and receive consideration for such assignment. The Association in its sole discretion, may levy and collect access fees to be used for the maintenance of Flightline Drive from entities, not part of the Kestrel Air Park Subdivisions, granted ingress and egress rights. Reason: To allow us to attempt to collect fees for road maintenance from Ahern Creek since they use Flightline Dr.

ARTICLE IV.

INGRESS AND EGRESS, AND OTHER EASEMENTS

4.1.Access to Subdivisions. In order to ensure full and reasonable vehicular and pedestrian access and ingress and egress over portions of the Subdivisions as appropriate, the following easements and rights of way have been created subject to the respective rules and regulations of the Owners Associations and KAPRA: