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Fine Resolution

Amended Fine Resolution

On June 13, 2006, the Board of Directors of the Association adopted a resolution authorizing
it to levy reasonable fines for violations of the Association's Restated Declaration of Restrictions, policies, rules and regulations (the “Existing Fine Resolution”). The Board of Directors now desires to amend the Existing Fine Resolution with the following amended fine resolution (the “Amended Fine Resolution”):

NOW, THEREFORE, IT IS HEREBY RESOLVED:

From and after the Effective Date (as defined below) of this Amended Fine Resolution:

A. The Board shall have the authority to levy fines for violations of the Association’s Restated
Declaration of Restrictions, policies, rules and regulations as follows:

(1) Fifteen and No/100ths Dollars ($15.00) per day for a continuing violation, up to a
maximum that may be established by the Board in each instance. A continuing violation is defined as a violation that occurs and continues for more than one day until such time as the Association becomes aware that such violation is corrected.

(2) Twenty and No/100ths Dollars ($20.00) per day for a recurring violation. A recurring
violation is defined as a violation that is a recurrence within six months of a previous
continuing or recurring violation of the same type for which fines were imposed by the
Association and which continues until such time as the Association becomes aware that
such violation is corrected.

B. The homeowner against whom fines are levied is responsible to notify the Association when
any continuing or recurring violation is corrected.

C. The Board shall levy no fine until: (i) written notice of the violation has been sent to the
homeowner and (ii) such person has had an opportunity to be heard before the Board or any
committee that the Board may appoint from time to time for such purpose; provided, however, that a continuing violation and any recurring violation of the same type shall be considered to be one and the same violation to which this Section C shall apply.

D. All fines levied pursuant to this policy are charges that are due and payable by the homeowner (whether or not an owner occupant), or other person against whom such fines are assessed, and, unless timely paid, shall be a lien against the homeowner’s building site. The lien will include all appropriate legal fees, costs and recording fees along with any interest that accrues until all such sums are paid in full. Correction of a violation that results in fines does not reduce or release liability for fines incurred prior to the Association’s having become aware that the violation was corrected nor for legal and recording fees, costs, and interest arising therefrom. The Association shall release any such lien upon payment in full of all such sums.

E. This Amended Fine Resolution shall become effective to amend and replace the Existing Fine Resolution on the date (the “Effective Date”) on which a copy of this Amended Fine Resolution is delivered to each lot, mailed to the mailing address of the each lot, or mailed to the mailing addresses designated in writing to the Association by the homeowners.