AUGUST 1, 2007 RE: HOME OWNER ASSOCIATION / OWNER MAINTENANCE POLICIES AND PROCEDURES

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TO: SOUTHERN VILLAGE TOWNHOME OWNERS FROM: SVHOA BOARD OF DIRECTORS; Tony Smith, Pres./Dick Lowe, Sec. DATE: AUGUST 1, 2007 RE: HOME OWNER ASSOCIATION / OWNER MAINTENANCE POLICIES AND PROCEDURES This and the attached schedules are to clarify for owners, townhome committee (SVTC)/ Board members and management the separate responsibilities and procedures required for exterior maintenance of townhomes. It will guide management decisions on maintenance and is designed to be uniformly fair and equitable to all owners. When an individual owner or authorized HOA representative perceives the need for exterior maintenance the attached list or schedule should first be checked to see if the responsibility for maintenance is that of the owner or the HOA. Other sources to refer to or consult are the recorded Covenants/Supplemental Covenants, Frequently Asked Questions and community management contacts at www.southernvillage.org. If the need is an authorized responsibility of the HOA a request should be made to the community management company by telephone, fax or email. (Harrington Bank provides free computer use.) If the need is NOT listed in the attached HOA schedule or IS a part of the itemized maintenance scheduled by the HOA at intervals shown, a request should NOT be made. Piecemeal, exterior maintenance is by owner only. If the work or maintenance requested is an owner responsibility or is a part of HOA maintenance periodically scheduled, the person requesting it will be clearly and appropriately so advised by management. Denials of maintenance requests may be appealed to the townhome committee (SVTC) and/or the Board prior to or at their next regularly scheduled meetings. When a maintenance request, which is the responsibility of SVHOA, is approved, management or SVTC or a designated Board representative will ask one or more of the service providers/handymen in the approved list attached to inspect, give an opinion and quote and then perform the work. Competitive quotes should always be encouraged and used when appropriate. Maintenance amounts exceeding $500 must be approved by a Board representative and/or SVTC member prior to performance and payment. The ATTACHED LIST of service providers is recommended for owners use as well; these referrals have been researched and compiled through actual and satisfactory experience of townhome owners, board members and SVTC members. This policy/maintenance responsibility/procedure has been fairly interpreted from Covenant provisions and developed from practical experience. Money spent on townhome maintenance is owner money whether or not it is first collected by the HOA. NOTE, home inspections issues are not relevant to this policy and should be settled by sellers/purchasers prior to closings. Volunteers are encouraged to get involved and continue to improve the townhome maintenance process.

SOUTHERN VILLAGE HOME OWNERS ASSOCIATION AND TOWNHOME OWNERS SCHEDULE OF MAINTENANCE RESPONSIBILITIES SVHOA RESPONSIBILITY: Maintain all unfenced lawn, landscape and streetscape areas as needed Repair, paint, refurbish, replace exterior wood trim every five years. Refurbish, maintain or replace all exterior caulking every five years Paint exterior doors, shutters, wood and iron railings every five years Paint/repair outside fence surfaces parallel to alleys every five to ten years Paint and repair hardiboard siding estimated as needed every ten years Provide tuck pointing of exterior brick walls and miscellaneous brick maintenance estimated as needed every ten years Replace exterior shutters every fifteen to twenty years. Repaint every five Replace gutters and downspout systems every twenty to twenty-five yearsclean and maintain as needed Repair exterior roofs (including leaks around chimneys and vents) as needed Replace exterior asphalt shingles on roofs every twenty to twenty-five years Provide annual termite inspection and protection SVHOA responsibility is limited to exterior maintenance, repairs, and replacements resulting from normal aging and exposure. Items not specifically listed above are excluded. Damages or needs resulting from all other sources are the individual owner s responsibility. OWNER RESPONSIBILITY: Maintain, repair, repaint, refurbish, replace, or touch up all exterior wood surfaces and caulking as desired or needed in the interim of the SVHOA maintenance scheduled every five years Maintain, repair, refurbish, paint or replace all masonry or wood porches, steps, stairs, stoops, inside fence surfaces and privacy fences as desired or needed Repair or replace all door jams, frames, thresh holds as desired or needed Repair or replace all window components including all glass, frames, casements, trims, hardware, caulking and sealants as desired or needed Repair, clean or replace all patios, walkways and driveways as desired or needed. Maintain or replace all attic/roof fans, ventilation devices including foundation vents and skylights as needed Repair or replace all mailboxes, garage doors, exterior light fixtures and other hardware as desired or needed. Maintain all private gardens, landscape additions, owner plantings, flowers, additional fences, trellises, masonry walls and any other owner installed decorative pieces Repair or replace all exterior area items damaged from sources such as owner negligence, willful destruction or hazardous loses

Exterior Wood trim, Door and Fence Maintenance on Southern Village Townhomes 2004 2005 2006 2007 Paint Roof Other Paint Roof Other Paint Roof Other Paint Roof Other Townhome 1 104-214 Westgreen Q2 see note 1 Townhome 2 200-210 Brookgreen Q1 see note 3 401-415 Copperline Q1 see note 3 400-410 Copperline Q1 412-422 Copperline Q1 500-516 Copperline Q1 520-536 Copperline Q1 200-212 Greenview Q1 see note 3 201-207 Greenview Q1 Westend 900-1018 Highgrove Q2 Highgrove 100-123 Westside Q2 see note 2 100-122 Nolen Q2 see note 2 101-123 Nolen Q1 100-122 Glade Q1 1 - Lattice work and pointing on bricks 2 - Performance completed work previously done 3 - Scheduled to be done in 2007

List of Contractors and Handy Men recommended by Southern Village Town Home residents Name Company Focus Contact Info Notes David Carroll A Trusted Son All types of projects -- repair work, roof leaks, deck building & repairs. He has a partner who works with him on larger projects. Cell Phone: 919 360-1742 Email atrustedson@gmail.com Office phone: 919 967-2008 Fax 919-967-2008 Gregg Melville Gregg Melville Homes Gregg does all types of projects among them general repairs, electrical, plumbing, sheetrock repair and roofing. Evie Watts Handy Mom Evie does all types of handy work Bud Matthews Joe Monitor Bud Matthews Home Improvements GJM Construction Office phone & fax : 919 929-4658 Cell phone: 919 619-0889 Phone: 919 967-9621 David lives in Southern Village. Recommended by several residents. Elizabeth Preddy has worked with him a lot. Also a resident of Southern Village. Highly recommended by several residents. Evie prefers to combine jobs so that she s at your home for several hours All types of projects Phone: 919 957-7065 Highly recommended by several residents. All types of projects Phone: 919 697-2812 Cell: 919 968-3448 Bill BGM Repairs wood trim and repaints. Ann Ambassador Ceramic tile and grout Cleaning cleaning and repair Services Phone: 336 213-4214 Phone: 919 796-5601 Bruce Bennett says he s a great craftsman. Has done a lot of work for home owners here. Ceramic tile and grout cleaning and repair 1

List of Contractors and Handy Men recommended by Southern Village Town Home residents Pete Cullis Dennis Sparrow Paul Rosenberg Port Cullis Tradesman Sparrow Heating and Air Conditioning Love Your Computer Does HVAC, electrical, plumbing, appliance repair and other types of work Phone: 919 255-0880 Pete was with the company that installed the Highgrove HVAC equipment. He started his own company and does a lot of work in Southern Village. Elizabeth Preddy has worked with him since moving in to Highgrove. HVAC 919 933-4665 Bruce Bennett said he s a real pro. Computer repairs Phone: 919 968-7787 lyc@digital4all.com Jimmy Lloyd Ecoscapes Landscape Phone: 919 625-0182 Email: ecoscapes@bellsouth.net Rick King New Leaf Landscaping Landscape Phone: 919 490-4454 www.newleaflandscaping.net Bill Stone Stone Services HVAC Repair Phone: 919-933-1423 Email: bpstone@bellsouth.net Suggest you ask contractor for a Southern Village home owner to provide a reference. Ask if the contractor is bonded and insured Makes house calls for an hourly rate. Also sells customized computers. Just completed the landscape enhancement project for Highgrove and will begin landscape maintenance for all SV townhomes effective 6/1/07 Better suited for small, personal projects Recommended by: Sue Tolleson-Rinehart 2