HILLS OF LAKEWAY PROPERTY OWNERS

THE HILLS OF LAKEWAY PROPERTY OWNER'S ASSOCIATION, INC. IS A MUTUAL BENEFIT NON-PROFIT CORPORATION FORMED AND OPERATED UNDER THE LAWS OF THE STATE OF TEXAS. THE HILLS OF LAKEWAY PROPERTY OWNER'S ASSOCIATION, INC. IS A SELF- SUPPORTING COMMUNITY LOCATED IN TEXAS. THE COMMUNITY OF THE HILLS OF LAKEWAY PROPERTY OWNER'S ASSOCIATION, INC. CONSISTS OF 1,086 RESIDENTIAL LOTS COMPRISING APPROXIMATELY 678 ACRES, AND SOME 2,500 RESIDENTS, AND COMMON AREAS CONSISTING OF 16 MILES OF ROADS, RELATED STREET LIGHTS, AND SECURITY GATES. THE MUNICIPALITY OF "THE VILLAGE OF THE HILLS" ENCOMPASSES VIRTUALLY THE SAME GEOGRAPHIC AREA AS THE ASSOCIATION, INCLUDING 100% OF THE 678 ACRES OF THE ASSOCIATION, PLUS AN ADDITIONAL FOUR ACRES OUTSIDE THE ASSOCIATION. LOCATED WITHIN THE ASSOCIATION BOUNDARIES IS A PRIVATE GOLF CLUB, THE HILLS COUNTRY CLUB, THAT IS OWNED AND MANAGED BY CLUBCORP. THIS GOLF CLUB IS NOT PART OF THE ASSOCIATION ITSELF. THE GOLF CLUB MEMBERSHIPS ARE AVAILABLE TO THE GENERAL PUBLIC, SO THE