LIONSGATE COMMUNITY ASSOCIATION, INC. RESOLUTION

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1 LIONSGATE COMMUNITY ASSOCIATION, INC. RESOLUTION The following resolution was adopted by the unanimous written consent of the Board of Directors ( Board ) of the LionsGate Community Association, Inc. ( Association ) as indicated below: WHEREAS, the Declaration of Covenants, Conditions, and Restrictions for LionsGate ( Declaration ) was recorded on December 9, 2005 in the office of the Johnston County, North Carolina Register of Deeds in Book 3030, Page 839; and WHEREAS, the Declaration provides that a Unit is [any] portion of [LionsGate], whether improved or unimproved, which may be independently owned and is intended for development, use, and occupancy as an attached or detached residence for a single family ( Unit ); and WHEREAS, the Declaration provides that an Owner is [o]ne or more Persons who hold the record title to any Unit ( Owner ); and WHEREAS, and with the Declaration, LionsGate Village, LLC (the Declarant in the Declaration ( Declarant )) and LGV, LLC ( LGV ) (as the owner of the real property now known as LionsGate ( LionsGate )) provided notice to all persons who after the time of the recordation of the Declaration become an Owner that they intend[ed] by the recording of th[e] Declaration to create a general plan of development for the planned community known as LionsGate ; and persons who after the time of the recordation of the Declaration become an Owner that a Community-Wide Standard would be established for LionsGate, which would be [t]he standard of conduct, maintenance, or other activity generally prevailing at LionsGate, or the minimum standards established pursuant to the Design Guidelines, Restrictions and Rules, and Board resolutions, whichever is a highest standard ; and persons who after the time of the recordation of the Declaration become an Owner that [a]ll property [in LionsGate]... shall be owned, conveyed and used subject to all of the provisions of th[e] Declaration, which shall run with the title to such property and that the Declaration shall be binding upon all Persons having any right, title, or interest in any portion of the Properties [in LionsGate], their heirs, successors, successors-in-title, and assigns ; and persons who after the time of the recordation of the Declaration become an Owner that [a]n integral part of the development plan is the creation of the Association, an association comprised of all owners of residential property in LionsGate, to own, operate and/or maintain various common areas and community improvements and to administer and enforce th[e] Declaration and the other Governing Documents referred to in th[e] Declaration ; and 1

2 persons who after the time of the recordation of the Declaration become an Owner that the Board of the Association is [t]he body responsible for administration of the Association, selected as provided in the Association By-Laws and generally serving the same role as the board of directors of a nonprofit corporation under North Carolina corporate law ; and persons who after the time of the recordation of the Declaration become an Owner that the Area of Common Responsibly in LionsGate ( Area of Common Responsibility ) included areas in LionsGate for which the Association has or assumes responsibility pursuant to the terms of th[e] Declaration, any... resolution of the Board,... or any other contracts or agreements ; and WHEREAS, and with section 7.2 of the Declaration, the Declarant and LGV provided that [u]nless otherwise assigned to a Unit or a Neighborhood Association, the Association shall maintain, in accordance with the Community-Wide Standard, the Area of Common Responsibility, which may include, but need not be limited to... such portions of any additional property included within the Area of Common Responsibility as may be dictated by th[e] Declaration... or any contract or agreement for maintenance thereof entered into by the Association; and WHEREAS, and with section 7.2 of the Declaration, the Declarant and LGV provided that [t]he Association may maintain other property which it does not own if the Board of Directors determines that such maintenance is necessary or desirable to maintain the Community-Wide Standard ; and WHEREAS, the Association has not specifically assigned any Area of Common Responsibility to any Unit or Neighborhood prior to the adoption of this resolution; and persons who after the time of the recordation of the Declaration become an Owner that Common Expenses includes [t]he actual and estimated expenses incurred, or anticipated to be incurred, by the Association for the general benefit of all Owners ( Common Expenses ); and persons who after the time of the recordation of the Declaration become an Owner that a Base Assessment is [a]ssessments levied on all Units subject to assessment under Article VIII [of the Declaration] to fund Common Expenses for the general benefit of all Units, as determined in accordance with Section 8.1 of the Declaration ( Base Assessment ); and WHEREAS, and with Section 8.1 of the Declaration, the Declarant and LGV provided that, [a]t least 60 days before the beginning of each fiscal year, the Board shall prepare a budget of the estimated Common Expenses for the coming year..., [that t]he Association is... authorized to levy Base Assessments equally against all Units... to fund the Common 2

3 Expenses, and of the process for consideration and approval of that budget of the estimated Common Expenses for each fiscal year; and WHEREAS, and since the beginning of the development of LionsGate, prospective and actual Owners have been told that yard maintenance services, including but not limited to mowing, trimming, aerating and seeding turf areas, blowing or sweeping sidewalks, curbs, and paved areas, edging sidewalks and curbs, fertilizing turf areas, trees and shrubs, treating turf areas and plant beds, pruning and/or shearing trees, spreading pine straw and mulch, and/or repairing irrigation lines of Units ( Yard Maintenance Services ), will be provided to the Units and Owners by the Association ( Yard Maintenance Representation ); and WHEREAS, and consistent with the Yard Maintenance Representation, the Association has, since the beginning of the development of LionsGate and on a consistent basis: (a) entered into contracts with third parties to provide Yard Maintenance Services; (b) approved budgets that included the provision of Yard Maintenance Services; (c) levied Base Assessments that included the provision of Yard Maintenance Services; (d) represented to Owners that the Association would provide, as Common Expenses, Yard Maintenance Services for each Unit in order to help guarantee that each Unit is maintained in accordance with the Community-Wide Standard for LionsGate; and (e) taken other actions, both formally through the Board and informally through the agents of the Association, to comply with the Yard Maintenance Representation and to provide Yard Maintenance Services to each and every Unit; and actions of the Board and the Association, the Board has determined that the provision of Yard Maintenance Services for each Unit is and continues to be desirable to meet the Community- Wide Standard for LionsGate; and actions of the Board and the Association, and in order to meet the Community-Wide Standard for LionsGate, the Board has determined it is desirable that the yard of each Unit be considered an Area of Common Responsibility in which the Association assumes responsibility to provide certain Yard Maintenance Services that may vary from year to year; and actions of the Board and the Association, the Board has determined it is in the best interest of the Association that, as a part of the general plan of development for the planned community known as LionsGate, the Association will continue to provide to each Unit certain Yard Maintenance Services that may vary from year to year; and WHEREAS, and with Section 11.5 of the Declaration, the Declarant and LGV provided that [t]he Declarant grant[ed] the Association easements over [each Unit] as necessary to fulfill its maintenance responsibilities under Section 7.2 of the Declaration and that [s]uch right may be exercised by any member of the Board and [the Association s] duly authorized agents and assignees ; and 3

4 WHEREAS, and with Section 11.5 of the Declaration, the Declarant and LGV provided that [t]he Association [is] authorized to enter into contracts or agreements with other entities to provide services to the Members of the Association [such as] landscape maintenance and similar services ; and WHEREAS, and in order to fulfill its maintenance responsibilities under Section 7.2 of the Declaration, the Association has contracted with and will continue to contract with third party contractors ( Third Party Contractors ) to provide Yard Maintenance Services, which Third Party Contractors are considered the duly authorized agents and assignees of the Association for purposes of fulfilling the Yard Maintenance Services; and persons who after the time of the recordation of the Declaration become an Owner that the Governing Documents is defined as [a] collective term referring to th[e] Declaration and any applicable Supplemental Declaration, the By-Laws, the Articles, the Design Guidelines, and the Use Restrictions and Rules, as they may be amended ; and WHEREAS, and with Section 7.5 of the Declaration, the Declarant and LGV provided that [e]very Owner and occupant of a Unit shall comply with the Governing Documents[,]... [t]he Board may impose sanctions for violation of the Governing Documents after notice and a hearing in accordance with the procedures set forth in Section 3.24 of the By-Laws[,] and [s]uch sanctions may include, without limitation:... imposing reasonable monetary fines;... suspending an Owner s right to vote;... suspending any Person s right to use any recreational facilities within the Common Area;... [and] levying Specific Assessments to cover costs incurred by the Association to bring a Unit into compliance with the Governing Documents. NOW, THEREFORE, BE IT RESOLVED that, as a part of the general plan of development for the planned community known as LionsGate, the Association will continue to provide to each Unit certain Yard Maintenance Services that may vary from year to year; and IT IS FURTHER RESOLVED that the yard of each Unit shall be considered an Area of Common Responsibility in which the Association has assumed responsibility to provide certain Yard Maintenance Services that may vary from year to year; and IT IS FURTHER RESOLVED that, and since the yard of each Unit shall be considered an Area of Common Responsibility in which the Association has assumed responsibility to provide certain Yard Maintenance Services that may vary from year to year, Owners may not waive the receipt of Yard Maintenance Services; however, the Association will assign to Owners who have installed a fence in their back yard in accordance with the Governing Documents the responsibility to maintain that fenced-in back yard in accordance with the Governing Documents with the understanding that: (a) such assignment shall in no way limit the Base Assessments levied against that Owner or their Unit; and (b) this assignment shall not limit to right of the Association to maintain the Association-controlled irrigation system within any fenced-in back yard in accordance with the Governing Documents; and 4

5 IT IS FURTHER RESOLVED that Third Party Contractors who have contracted with the Association to provide the Yard Maintenance Services are and will continue to be the authorized agents and assignees of the Association and, as such, Owners are prohibited from interfering with the obligation of the Third Party Contractors to fulfill the Yard Maintenance Services; and IT IS FURTHER RESOLVED that the President of the Association is authorized to take such other actions as he or she deems necessary to effectuate this resolution on such terms and conditions as the President deems reasonable. The foregoing preambles and resolutions are hereby adopted and approved without a meeting by the Board by unanimous written consent, pursuant to Section 3.16 of the Bylaws of the Association. All Directors of the Association hereby certify that the foregoing is an accurate representation of the action of the Board. Effective this 20th day of September, Director Brent Wood Director Reid Smith 5

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