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HIGHLANDER SM TWO, LLC <br />PO Box 470249 <br />Fort Worth, Texas 76147 <br />January 21, 2026 <br />Via Overnight Delivery and Email <br />City of San Marcos <br />Attn: Director of Utilities <br />630 E. Hopkins <br />San Marcos, Texas 78666 <br />Via Email <br />Guadalupe County Municipal Utility District No. 9 Clint E. Jones <br />c/o Allen Boone Humphries Robinson LLP Regal Land Development <br />Attn: D. Ryan Harper 6 Gruene Wald <br />919 Congress Avenue, Suite 1500 New Braunfels, Texas 78130 <br />Austin, Texas 78701 <br />JLBC 710 Investments, LLC <br />Attn: John S. Lloyd & Bruce Cash <br />6504 W. Courtyard Drive <br />Austin, Texas 78730 <br />Sedona South Municipal Utility District <br />c/o Armbrust & Brown, PLLC <br />Attn: Kevin Flahive <br />100 Congress Avenue, Suite 1300 <br />Austin, Texas 78701 <br />Rattler Ridge, LP <br />Attn: Clint Jones <br />6 Gruene Wald <br />New Braunfels, Texas 78130 <br />Re: Notice of Termination of Regional Wastewater Services and Facilities Cost <br />Sharing Agreement, as amended (the "Agreement") <br />Dear Messrs.: <br />Please be advised that Highlander SM Two, LLC ("Highlander), is hereby <br />terminating its participation in the Agreement effective as the date of this notice of <br />termination. <br />Pursuant to Article V, Section 2(a) of the Agreement, Higllander has the right, in <br />4913-4744-0246 v.1 <br />