Lexington Estates TH Community Manual

AFTER RECORDING RETURN TO: Robert D. Burton, Esq.

Winstead PC 401 Congress Ave., Suite 2100 Austin, Texas 78701 Email: rburton@winstead. com LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL ASHTON DALLAS RESIDENTIAL L.L.C., a Texas limited liability company, as the Declarant under Lexington Estates Development Area Declaration (Townhomesl recorded under Document No.

------~ Official Public Records of Collin County, Texas, and the initial and sole member of Lexington Estates Townhome Association, Inc., a Texas non-profit corporation (the "Townhome Association"), certifies that the foregoing Townhome Community Manual was adopted as part of the initial project documentation for the Lots subject to the Lexington Estates Development Area Declaration [Townhomes] (the "Development Area Declaration"). This Townhome Community Manual becomes effective when Recorded.

1~;v1TNESS mF, the undersigned has executed this Townhome Community Manual on the ;J -day of • 2oi!..P......

DECLARANT: THE ST ATE OF TEXAS § limited liability compan , on behalf of said limited Ii ility compa · .

(SEAL) Cross-reference to Lexington Estates Development Area Declaration (Townhomesl recorded under Document No.

4827-2004-268lv.2 57160-13 LEXINGTON ESTATES TOWNHOME ASSOCIATION , INC.

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4827-2004-268lv.2 57160-13 LEXINGTON ESTATES TOWNHOME ASSOCIATION , INC.

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5. TOWNHOME COMMUNITY MANUAL TABLE OF CONTENTS TOWNHOME CERTIFICATE OF FORMATION TOWNHOME BYLAWS FINE AND ENFORCEMENT POLICY TOWNHOME ASSESSMENT COLLECTION POLICY RECORDS INSPECTION, COPYING AND RETENTION POLICY 6. STATUTORY NOTICE OF POSTING AND RECORDATION OF TOWNHOME ASSOCIATION GOVERNANCE DOCUMENTS 7. EMAIL REGISTRATION POLICY 4827-2004-268lv.2 57160-13 A TT A CHM ENT 1 ATTACHMENT 2 ATTACHMENT3 ATTACHMENT 4 ATTACHMENT 5 ATTACHMENT 6 A TT A CHM ENT 7 ATTACHMENT 1 TOWNHOME CERTIFICATE OF FORMATION [SEE ATTACHED] 4827-2004-268lv.2 57160-13 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 1 -Townhome Certificate of Formation CERTIFICATE OF FORMATION OF LEXINGTON ESTATES TOWNHOME ASSOCIATION, INC.

The undersigned natural person, being of the age of eighteen (18) years or more, a citizen of the State of Texas, acting as incorporator of a nonprofit corporation under the Texas Business Organizations Code, does hereby adopt the following Certificate of Formation for such corporation: ARTICLE I NAME The name of the corporation is Lexington Estates Townhome Association, Inc. (hereinafter called the "Townhome Association").

ARTICLE II NONPROFIT CORPORATION The Townhome Association is a nonprofit corporation.

ARTICLE III DURATION The Townhome Association shall exist perpetually.

ARTICLE IV PURPOSE AND POWERS OF THE TOWNHOME ASSOCIATION The Townhome Association is organized in accordance with, and shall operate for nonprofit purposes, pursuant to the Texas Business Organizations Code, and does not contemplate pecuniary gain

SOCIATION The Townhome Association is organized in accordance with, and shall operate for nonprofit purposes, pursuant to the Texas Business Organizations Code, and does not contemplate pecuniary gain or profit to its members. In furtherance of its purposes, the Townhome Association shall have the following powers which, unless indicated otherwise by this Certificate of Formation, that certain Collin County, Texas, as the same may be amended from time to time (the "Development Area Declaration"), the Townhome Bylaws, or Applicable Law, may be exercised by the Townhome Board: (a) all rights and powers conferred upon nonprofit corporations by Applicable Law; (b) all rights and powers conferred upon property associations by Applicable Law, in effect from time to time, provided, however, that the Townhome Association shall not have the power to institute, defend, intervene in, settle or compromise proceedings (i) in the name of any Townhome Member or Owner (whether one or more); (ii) pertaining to a Claim, as defined in Section 11.1 of the Development Area Declaration relating to the design or construction of Improvements on a Lot (whether one or more); or (iii) pertaining to a Claim, as defined in Section 11.1 of the Development Area Declaration relating to the Area of Common Responsibility.

(c) all powers necessary, appropriate, or advisable to perform any purpose or duty of the Townhome Association as set out in this Certificate of Formation, the Townhome Bylaws, the Development Area Declaration, or Applicable Law.

4827-2004-268lv.2 57160-13 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 1 -Townhome Certificate of Formation

mation, the Townhome Bylaws, the Development Area Declaration, or Applicable Law.

4827-2004-268lv.2 57160-13 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 1 -Townhome Certificate of Formation Notwithstanding any provision in Article XIV to the contrary, any proposed amendment to the provisions of this Article IV shall be adopted only upon an affirmative vote of Townhome Members holding one-hundred percent (100%) of the total number of votes of the Townhome Association and the Declarant.

Terms used but not defined in this Certificate of Formation, shall have the meaning subscribed to such terms in the Development Area Declaration.

ARTICLE V REGISTERED OFFICE; REGISTERED AGENT The street address of the initial registered office of the Townhome Association is 401 Congress Ave., Suite 2100, Austin, Texas 78701. The name of its initial registered agent at such address is Robert D.

Burton.

ARTICLE VI MEMBERSHIP Membership in the Townhome Association shall be dependent upon ownership of a qualifying property interest as defined and set forth in the Development Area Declaration. Any person or entity acquiring such a qualifying property interest shall automatically become a member of the Townhome Association, and such membership shall be appurtenant to, and shall run with, the property interest. The foregoing shall not be deemed or construed to include persons or entities holding an interest merely as security for performance of an obligation. Membership may not be severed from or in any way transferred, pledged, mortgaged, or alienated except together with the title to the qualifying property interest, and then only to the transferee of title to said property interest. Any attempt to make a prohibited severance, transfer, pledge, mortgage, or alienation shall be void.

e qualifying property interest, and then only to the transferee of title to said property interest. Any attempt to make a prohibited severance, transfer, pledge, mortgage, or alienation shall be void.

ARTICLE VII VOTING RIGHTS Voting rights of the members of the Townhome Association shall be determined as set forth in the Development Area Declaration .

ARTICLE Vlll INCORPORATOR The name and street address of the incorporator is: NAME Robert D. Burton ADDRESS 401 Congress A venue, Suite 2100 Austin, Texas 78701 ARTICLE IX TOWNHOME ASSOCIATION BOARD OF DIRECTORS The affairs of the Townhome Association shall be managed by an initial Board of Directors consisting of three (3) individuals, who need not be members of the Townhome Association . The Townhome Board shall fulfill all of the functions of, and possess all powers granted to, Boards of Directors of nonprofit corporations pursuant to the Texas Business Organizations Code. The number of Directors of the Townhome Association may be changed by amendment of the Townhome Bylaws. The 4827-2004-2681 v.2 57160-13 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment l -Townhome Certificat e of Formation names and addresses of the persons who are to act in the capacity of initial Directors until the selection of their successors are: NAME Kara Dederick Craig Hovde Robb Rigby ADDRESS 1800 Valley View Lane, Suite 100 Farmers Branch, Texas 75234 1800 Valley View Lane, Suite 100 Farmers Branch, Texas 75234 1800 Valley View Lane, Suite 100 Farmers Branch, Texas 75234 All of the powers and prerogatives of the Townhome Association shall be exercised by the Board of Directors named above until their successors are elected or appointed in accordance with the Development Area Declaration.

ARTICLEX LIMITATION OF DIRECTOR LIABILITY

shall be exercised by the Board of Directors named above until their successors are elected or appointed in accordance with the Development Area Declaration.

ARTICLEX LIMITATION OF DIRECTOR LIABILITY A member of the Board of Directors of the Townhome Association shall not be personally liable to the Townhome Association for monetary damages for any act or omission in his capacity as a board member, except to the extent otherwise expressly provided by Applicable Law. Any repeal or modification of this Article X shall be prospective only, and shall not adversely affect any limitation of the personal liability of a member of the Board of Directors existing at the time of the repeal or modification.

ARTICLE XI INDEMNIFICATION Each person who acts as a member of the Board of Directors, officer or committee member of the Townhome Association shall be indemnified by the Townhome Association against any costs, expenses and liabilities which may be imposed upon or reasonably incurred by him in connection with any civil or criminal action, suit or proceeding in which he may be named as a party defendant or in which he may be a witness by reason of his or her being or having been a member of the Board of Directors, officer, or committee member of the Townhome Association, or by reason of any action alleged to have been taken or omitted by him or her in either such capacity. Such indemnification shall be provided in the manner and under the terms, conditions and limitations set forth in Section 3.7 of the Development Area Declaration.

ARTICLE XII DISSOLUTION The Townhome Association may be dissolved with the written and signed assent of not less than ninety percent (90%) of the total number of votes of the Townhome Association, as determined under the

ION The Townhome Association may be dissolved with the written and signed assent of not less than ninety percent (90%) of the total number of votes of the Townhome Association, as determined under the Development Area Declaration. Upon dissolution of the Townhome Association, other than incident to a merger or consolidation, the assets of the Townhome Association shall be dedicated to an appropriate public agency to be used for purposes similar to those for which this Townhome Association was created.

In the event that such dedication is refused acceptance, such assets shall be granted, conveyed, and 4827-2004-2681 V .2 57160-13 LEXINGTON EST ATES TOWNHOME COMMUNITY MANUAL Attachment 1 -Townhome Certificate of Formation assigned to any nonprofit corporation, association, trust, or other organization to be devoted to such similar purposes.

ARTICLE XIII ACTION WITHOUT MEETING Any action required or permitted by Applicable Law to be taken at a meeting of the Townhome Members may be taken without a meeting, without prior notice, and without a vote if written consent specifically authorizing the proposed action is signed by the Townhome Members holding at least the minimum number of votes necessary to authorize such action at a meeting if all the Townhome Members entitled to vote thereon were present. If the action is proposed by the Townhome Association, the Board of Directors shall provide each member of the Townhome Association written notice at least ten (10) days in advance of the date the Board of Directors proposes to initiate securing consent as contemplated by this Article XIII. Consents obtained pursuant to this Article XIII shall be dated and signed within sixty (60) days after receipt of the earliest dated consent and delivered to the Townhome Association at its

icle XIII. Consents obtained pursuant to this Article XIII shall be dated and signed within sixty (60) days after receipt of the earliest dated consent and delivered to the Townhome Association at its principal place of business in Texas. Such consents shall be filed with the minutes of the Townhome Association and shall have the same force and effect as a vote of the Townhome Members at a meeting.

Within ten (10) days after receiving authorization for any action by written consent, the Secretary shall give written notice to all Townhome Members entitled to vote who did not give their written consent, fairly summarizing the material features of the authorized action.

ARTICLE XIV AMENDMENT Except as otherwise provided by the terms and provisions of Article IV of this Certificate of Formation, this Certificate of Formation may be amended by the Dedarant during the Development Period or by a Majority of the Townhome Board; provided, however, that any amendment to this Certificate of Formation by a Majority of the Townhome Board must be approved in advance and in writing by the Dedarant during the Development Period.

4827-2004-268lv.2 57160-13 Robert D. Burton, lncorporator LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 1 -Townhome Certificate of Formation A TI A CHM ENT 2 BYLAWS OF LEXINGTON ESTATES TOWNHOME ASSOCIATION, INC.

ARTICLE I INTRODUCTION The name of the corporation is Lexington Estates Townhome Association, Inc., a Texas non-profit corporation, hereinafter referred to as the "Townhome Association". The principal office of the Townhome Association shall initially be located in Collin County, Texas, but meetings of Townhome

profit corporation, hereinafter referred to as the "Townhome Association". The principal office of the Townhome Association shall initially be located in Collin County, Texas, but meetings of Townhome Members and Directors may be held at such places as may be designated by the Townhome Board as provided in these Townhome Bylaws.

The Townhome Association is organized to be a nonprofit corporation.

Notwithstanding anything to the contrary in these Townhome Bylaws, a number of provisions are modified by the Dedarant's reservations in that certain Lexington Estates Development Area Declaration [Townhom es], recorded in the Official Public Records of Collin County, Texas (the "Development Area Declaration"), including the number, qualification, appointment, removal, and replacement of Directors.

ARTICLE II DEFINITIONS Capitalized terms used but not defined in these Townhome Bylaws shall have the meaning subscribed to such terms in the Development Area Declaration.

ARTICLE III MEMBERSHIP, MEETINGS, QUORUM, VOTING, PROXIES Section 3.1. Membership. Each Owner of a Lot is a mandatory member of the Townhome Association, as more fully set forth in the Development Area Declaration.

Section 3.2. Place of Meetings. Meetings of the Townhome Association shall be held where designated by the Townhorne Board, either within the Development Area or as convenient as possible and practical.

Section 3.3. Annual Meetings. There shall be an annual meeting of the Townhome Members of the Townhome Association for the purposes of Townhome Association-wide elections or votes and for such other Townhome Association business at such reasonable place, date and time as set by the Townhome Board.

Section 3.4. Special Meetings. Special meetings of Townhome Members may be called in

for such other Townhome Association business at such reasonable place, date and time as set by the Townhome Board.

Section 3.4. Special Meetings. Special meetings of Townhome Members may be called in accordance with Section 22.155 of the Texas Business Organizations Code or any successor statute.

4827-2004-2681v.2 57160-13 1 LEXINGTON EST ATES TOWN HOME COMMUNITY MANUAL Attachment 2 -Bylaws Section 3.5. Notice of Meetings. Written or printed notice stating the place, day, and hour of any meeting of the Townhome Members shall be delivered, either personally or by mail, to each Townhome Member entitled to vote at such meeting or by publication in a newspaper of general circulation, not less than ten (10) nor more than sixty (60) days before the date of such meeting, by or at the direction of the President, the Secretary, or the officers or persons calling the meeting. In the case of a special meeting or when otherwise required by statute or these Townhome Bylaws, the purpose or purposes for which the meeting is called shall be stated in the notice. No business shall be transacted at a special meeting except as stated in the notice. If mailed, the notice of a meeting shall be deemed to be delivered when deposited in the United States mail addressed to the Townhome Member at his address as it appears on the records of the Townhome Association, with postage prepaid. If an election or vote of the Townhome Members will occur outside of a meeting of the Townhome Members (i.e., absentee or electronic ballot), then the Townhome Association shall provide notice to each Townhome Member no later than the 20th day before the latest date on which a ballot may be submitted to be counted.

Section 3.6. Waiver of Notice. Waiver of notice of a meeting of the Townhome Members shall

me Member no later than the 20th day before the latest date on which a ballot may be submitted to be counted.

Section 3.6. Waiver of Notice. Waiver of notice of a meeting of the Townhome Members shall be deemed the equivalent of proper notice. Any Townhome Member may, in writing, waive notice of any meeting of the Townhome Members, either before or after such meeting. Attendance at a meeting by a Townhome Member shall be deemed a waiver by such Townhome Member of notice of the time, date, and place thereof, unless such Townhome Member specifically objects to lack of proper notice at the time the meeting is called to order. Attendance at a special meeting by a Townhome Member shall be deemed a waiver of notice of all business transacted at such meeting unless an objection by a Townhome Member on the basis of lack of proper notice is raised before the business is put to a vote.

Section 3.7. Quorum. Except as provided in these Townhome Bylaws or in the Development Area Declaration, the presence of the Townhome Members representing ten percent (10%) of the total votes in the Townhome Association shall constitute a quorum at all Townhome Association meetings.

The Townhome Members present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the departure of enough Townhome Members to leave less than a quorum, provided that Townhome Members representing at least five percent (5%) of the total votes in the Townhome Association remain in attendance, and provided that any action taken is approved by at least a Majority of the votes present at such adjourned meeting, unless otherwise provided in the Development Area Declaration.

main in attendance, and provided that any action taken is approved by at least a Majority of the votes present at such adjourned meeting, unless otherwise provided in the Development Area Declaration.

Section 3.8. Conduct of Meetings. The President or any other person appointed by the Townhome Board shall preside over all Townhome Association meetings, and the Secretary, or the Secretary's designee, shall keep the minutes of the meeting and record in a minute book all resolutions adopted at the meeting, as well as a record of all transactions occurring at the meeting.

Section 3.9. Voting. The voting rights of the Townhome Members shall be as set forth in the Development Area Declaration, and such voting rights provisions are specifically incorporated by reference. Except as otherwise provided in the Development Area Declaration, action may be taken at any legally convened meeting of the Townhome Members upon the affirmative vote of the Townhome Members having a Majority of the total votes present at such meeting in person or proxy or by absentee ballot or electronic ballot, if such votes are considered present at the meeting as further set forth herein.

Cumulative voting shall not be allowed. The person holding legal title to a Lot shall be entitled to cast the vote allocated to such Lot and not the person merely holding beneficial title to the same unless such right is expressly delegated to the beneficial Owner thereof in writing. Any provision in the Townhome LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws Association's governing documents that would disqualify an Owner from voting in a Townhome Association election of members of the Townhome Board or on any matter concerning the rights or

ent 2 -Bylaws Association's governing documents that would disqualify an Owner from voting in a Townhome Association election of members of the Townhome Board or on any matter concerning the rights or responsibilities of the Owner is void.

Section 3.10. Methods of Voting: In Person; Proxies; Absentee Ballots: Electronically. On any matter as to which a Townhome Member is entitled individually to cast the vote for his Lot such vote may be cast or given: (a) in person or by proxy at a meeting of the Townhome Association; (b) by absentee ballot; (c) by electronic ballot; or (d) by such other means as may be permitted by law and as adopted by the Townhome Board. Any vote cast in an election or vote by a Townhome Member of the Townhome Association must be in writing and signed by the Townhome Member. Electronic votes constitute written and signed ballots. In a Townhome Association election, written and signed ballots are not required for uncontested races. Votes shall be cast as provided in this Section: (A) Proxies. Any Townhome Member may give a revocable written proxy in the form as prescribed by the Townhome Board from time to time to any person authorizing such person to cast the Townhome Member's vote on any matter. A Townhome Member's vote by proxy is subject to any limitations of Texas law relating to the use of general proxies and subject to any specific provision to the contrary in the Development Area Declaration or these Townhome Bylaws. No proxy shall be valid unless signed by the Townhome Member for which it is given or his duly authorized attorney-in-fact, dated, and filed with the Secretary of the Townhome Association prior to the meeting for which it is to be effective. Proxies shall be valid only for the specific meeting for which given and for lawful

ated, and filed with the Secretary of the Townhome Association prior to the meeting for which it is to be effective. Proxies shall be valid only for the specific meeting for which given and for lawful adjournments of such meeting. In no event shall a proxy be valid more than eleven (11) months after the effective date of the proxy. Every proxy shall be revocable and shall automatically cease upon conveyance of the Lot for which it was given.

(B) Absentee and Electronic Ballots. An absentee or electronic ballot: (i) may be counted as a Townhome Member present and voting for the purpose of establishing a quorum only for items appearing on the ballot; (ii) may not be counted, even if properly delivered, if the Townhome Member attends any meeting to vote in person, so that any vote cast at a meeting by a Townhome Member supersedes any vote submitted by absentee or electronic ballot previously submitted for that proposal; and (iii) may not be counted on the final vote of a proposal if the proposal was amended at the meeting to be different from the exact language on the absentee or electronic ballot. For the purposes of this Section, a nomination taken from the floor in a Townhome Board member election is not considered an amendment to the proposal for the election.

(1) Absentee Ballots. No absentee ballot shall be valid unless it is in writing, signed by the Townhome Member for which it is given or his duly authorized attorney-in-fact, dated, and filed with the Secretary of the Townhome Association prior to the meeting for which it is to be effective. Absentee ballots shall be valid only for the specific meeting for which given and for lawful adjournments of such meeting. In no event shall an absentee ballot be valid after the

t is to be effective. Absentee ballots shall be valid only for the specific meeting for which given and for lawful adjournments of such meeting. In no event shall an absentee ballot be valid after the specific meeting or lawful adjournment of such meeting at which such ballot is counted or upon conveyance of the Lot for which it was given. Any solicitation for votes by absentee ballot must include: (i) an absentee ballot that contains each proposed action and provides an opportunity to vote for or against each proposed action; 4827-2004-2681v.2 57160-13 3 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws (ii) instructions for delivery of the completed absentee ballot, including the delivery location; and (iii) the following language: "By castiug your vote via absentee ballot yo11 will forgo the opport1111ity to consider a11d vote 011 any actiou from the floor 011 these proposals, if a meetiug is held. This means that if there are amendments to these proposals yo11r votes will 11ot be cottuted 011 the final vote 011 these meas11res. If yo11 desire to retain this ability, please attend a11y meeting i1I person. You may submit au abse11tee ballot aud later choose to atteud a11y meetillg i,i persou, i11 which case a11y in­ person vote will prevail."

(2) Electronic Ballots. "Electronic ballot" means a ballot: (a) given by email, facsimile or posting on a website; (b) for which the identity of the Townhome Member submitting the ballot can be confirmed; and (c) for which the Townhome Member may receive a receipt of the electronic transmission and receipt of the Townhome Member's ballot. If an electronic ballot is posted on a website, a notice of the posting shall be sent to each Townhome Member that

a receipt of the electronic transmission and receipt of the Townhome Member's ballot. If an electronic ballot is posted on a website, a notice of the posting shall be sent to each Townhome Member that contains instructions on obtaining access to the posting on the website.

Section 3.11. Tabulation of and Access to Ballots. A person who is a candidate in a Townhome Association election or who is otherwise the subject of a Townhome Association vote, or a person related to that person within the third degree by consanguinity or affinity may not tabulate or otherwise be given access to the ballots cast in that election or vote except such person may be given access to the ballots cast in the election or vote as part of a recount process. A person tabulating votes in a Townhome Association election or vote or who performs a recount pursuant to Section 3.12 may not disclose to any other person how an individual voted. Notwithstanding any provision of these Townhome Bylaws to the contrary, only a person who tabulates votes pursuant to this Section or performs a recount pursuant to Section 3.12 shall be given access to any Townhome Association ballots.

Section 3.12. Recount of Votes. Any Townhome Member (the "Recount Requesting Member") may, not later than the fifteenth (15th) day after the later of the date of any meeting of Townhome Members at which an election or vote was held, or the date of the announcement of the results of the election or vote, require a recount of the votes (the "Recount Request"). A Recount Request must be submitted in writing either: (i) by any method of mailing for which evidence of mailing is provided by the United States Postal Service or a common carrier, with signature confirmation service to the

submitted in writing either: (i) by any method of mailing for which evidence of mailing is provided by the United States Postal Service or a common carrier, with signature confirmation service to the Townhome Association's mailing address as reflected on the latest management certificate; or (ii) in person to the Townhome Association's managing agent as reflected on the latest management certificate or to the address to which absentee and proxy ballots are mailed. The Recount Requesting Member shall be required to pay, in advance, expenses associated with the recount as estimated by the Townhome Association, pursuant to subsection (a) below.

(a) Cost of Recount. The Townhome Association shall estimate the costs for performing the recount by a person qualified to tabulate votes under subsection (b), and no later than the 20th day after the date the Townhome Association receives the Recount Request, shall send an invoice for the estimated costs (the "Initial Recount Invoice") to the Recount Requesting Member at the Recount Requesting Member's last known address according to the Townhom e Association's records. The Recount Requesting Member must pay the Initial Recount Invoice in full to the Townhome Association on or before the 30th 4 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws 4827-2004-2681v .2 57160-13 day after the date the Initial Recount Invoice was delivered to the Recount Requesting Member (the "Deadline"). If the Initial Recount Invoice is not paid by the Recount Requesting Member by the Deadline, the Recount Requesting Member's Recount Request shall be considered withdrawn and the Townhome Association shall not be required to perform a recount. If the Initial Recount Invoice is paid

Deadline, the Recount Requesting Member's Recount Request shall be considered withdrawn and the Townhome Association shall not be required to perform a recount. If the Initial Recount Invoice is paid by the Recount Requesting Member by the Deadline, then on or before the 30th day after the date of receipt of payment of the Invoice, the recount must be completed and the Townhome Association must provide each Recount Requesting Member with notice of the results of the recount. If the recount changes the results of the election, the Townhome Association shall reimburse the Recount Requesting Member for the cost of the recount not later than the 30th day after the date the results of the recount are provided.

If the recount does not change the results of the election, and the estimated costs included on the Initial Recount Invoice are either lesser or greater than the actual costs of the recount, the Townhome Association shall send a final invoice (the "Final Recount Invoice") to the Recount Requesting Member on or before the 30th business day after the date the results of the recount are provided. If the Final Recount Invoice reflects that additional amounts are owed by the Recount Requesting Member, the Recount Requesting Member shall remit such additional amounts to the Townhome Association immediately. Any additional amounts not paid to the Townhome Association by the Recount Requesting Member before the 30th business day after the date the Final Recount Invoice is sent may be charged as an Individual Townhome Assessment against the Recount Requesting Member. If the costs estimated in the Initial Recount Invoice costs exceed the amount reflected in the Final Recount Invoice, then the Recount

vidual Townhome Assessment against the Recount Requesting Member. If the costs estimated in the Initial Recount Invoice costs exceed the amount reflected in the Final Recount Invoice, then the Recount Requesting Member shall be entitled to a refund, which such refund shall be paid at the time the Final Recount Invoice is delivered pursuant to this Section.

(b) Vote Tabulator. Following receipt of payment of the Initial Recount Invoice, the Townhome Association shall retain for the purpose of performing the recount, the services of a person qualified to tabulate votes. The Townhome Association shall enter into a contract for the services of a person who: (i) is not a Townhome Member or related to a member of the Townhome Board within the third degree by consanguinity or affinity; and (ii) is either a person agreed on by the Townhome Association and each person requesting a recount or is a current or former county judge, county elections administrator, justice of the peace or county voter registrar.

(c) Townhome Board Action. Any action taken by the Townhome Board in the period between the initial election vote tally and the completion of the recount is not affected by any recount.

Section 3.13. Action without a Meeting. Any action required or permitted by law to be taken at a meeting of the Townhome Members may be taken without a meeting, without prior notice, and without a vote if written consent specifically authorizing the proposed action is signed by Townhome Members holding at least the minimum number of votes necessary to authorize such action at a meeting if all Townhome Members entitled to vote thereon were present. Such consents shall be signed within sixty (60) days after receipt of the earliest dated consent, dated, and delivered to the Townhome Association at

ome Members entitled to vote thereon were present. Such consents shall be signed within sixty (60) days after receipt of the earliest dated consent, dated, and delivered to the Townhome Association at its principal place of business in Texas. Such consents shall be filed with the minutes of the Townhome Association and shall have the same force and effect as a vote of the Townhome Members at a meeting.

Within ten (10) days after receiving authorization for any action by written consent, the Secretary shall give written notice to all Townhome Members entitled to vote who did not give their written consent, fairly summarizing the material features of the authorized action.

4827-2004-2681v.2 57160-13 5 LEXINGTON ESTATES TOWNHOME COMMUNI1Y MANUAL Attachment 2 -Bylaws ARTICLE IV TOWNHOME BOARD OF DIRECTORS Section 4.1. Authority; Number of Directors.

(a) The affairs of the Townhome Association shall be governed by the Townhome Board of Directors. The number of Directors shall be fixed by the Townhome Board from time to time. The initial Directors shall be three (3) in number and shall be those Directors named in the Townhome Certificate.

The initial Directors shall serve until their successors are appointed or elected and qualified.

(b) In accordance with Section 3.3 of the Development Area Declaration, no later than the 10th anniversary of the date the Development Area Declaration is recorded in the Official Public Records of Collin County, Texas, or sooner as determined by Dedarant, the Townhome Board must have held a meeting of the Townhome Members (the "Initial Member Election Meeting") where the Townhome Members will elect one (1) Director, for a one (1) year term ("Initial Member Elected Director").

have held a meeting of the Townhome Members (the "Initial Member Election Meeting") where the Townhome Members will elect one (1) Director, for a one (1) year term ("Initial Member Elected Director").

Declarant will continue to appoint and remove two-thirds (½) of the Townhome Board after the Initial Member Election Meeting until expiration or termination of the Development Period. Notwithstanding the foregoing, the Initial Member Elected Director's term will expire as of the date of the Member Election Meeting.

(c) At the expiration or termination of the Development Period, the Dedarant will thereupon call a meeting of the Townhome Members where the Declarant appointed Directors will resign and the Townhome Members will elect three (3) new directors (to replace all Declarant appointed Directors and the Initial Member Elected Director) (the "Member Election Meeting"), one (1) Director for a three (3) year term, one (1) Director for a two (2) year term, and one (1) Director for a one (1) year term (with the individual receiving the highest number of votes to serve the three (3) year term, the individual receiving the next highest number of votes to serve the two (2) year term, and the individual receiving the third highest number of votes to serve a one (1) year term). Upon expiration of the term of a Director elected by the Townhome Members pursuant to this Section 4.1(c), his or her successor will be elected for a term of three (3) years.

(d) A Director takes office upon the adjournment of the meeting or balloting at which he is elected or appointed and, absent death, ineligibility, resignation, or removal, will hold office until his successor is elected or appointed.

(e) Each Director, other than Directors appointed by Declarant, shall be a Townhome

absent death, ineligibility, resignation, or removal, will hold office until his successor is elected or appointed.

(e) Each Director, other than Directors appointed by Declarant, shall be a Townhome Member. In the case of corporate, partnership, or other entity ownership of a Lot, the Director must be a duly authorized agent or representative of the corporation, the partnership, or other entity which owns the Lot. Other than as set forth in this subparagraph (e), the Townhome Association may not restrict an Owner's right to run for a position on the Townhome Board.

Section 4.2. Compensation. The Directors shall serve without compensation for such service.

Section 4.3. Nominations to Townhome Board of Directors. Townhome Members may be nominated for election to the Townhome Board in either of the following ways: LEXINGTON ESTATES TOWNHOM E COMMUNITY MANUAL Attachment 2 -Bylaws (a) A Townhome Member who is not a Director and who desires to run for election to that position shall be deemed to have been nominated for election upon his filing with the Townhome Board a written petition of nomination; or (b) A Director who is eligible to be re-elected shall be deemed to have been nominated for re-election to the position he holds by signifying his intention to seek reelection in a writing addressed to the Townhome Board.

Section 4.4. Vacancies on Townhome Board. Except with respect to Directors appointed by the Declarant, if the office of any elected Director shall become vacant by reason of death, resignation , or disability, the remaining Directors, at a special meeting duly called for this purpose, shall choose a successor who shall fill the unexpired term of the directorship being vacated. If there is a deadlock in the

the remaining Directors, at a special meeting duly called for this purpose, shall choose a successor who shall fill the unexpired term of the directorship being vacated. If there is a deadlock in the voting for a successor by the remaining Directors, the one Director with the longest continuous term on the Townhome Board shall select the successor. At the expiration of the term of his position on the Townhome Board of Directors, the successor Director shall be re-elected or his successor shall be elected in accordance with these Townhome Bylaws. Except with respect to Directors appointed by the Declarant, any Townhome Board member whose term has expired or who has been removed from the Townhome Board must be elected by the Townhome Members.

Section 4.5. Removal of Directors. Subject to the right of Declarant to nominate and appoint Directors as set forth in Section 4.1 of these Townhome Bylaws, an elected Director may be removed, with or without cause, by the Majority of the Townhome Members which elected such Director.

Section 4.6. Solicitation of Candidate for Election to the Townhome Board. At least thirty (30) days before the date a Townhome Association disseminates absentee ballots or other ballots to Townhome Members for the purpose of voting in a Townhome Board election, the Townhome Association shall provide notice (the "Solicitation Notice") of the election to the Townhome Members.

The Solicitation Notice shall: (a) solicit candidates that are eligible under Section 4.1(e) and interested in running for a position on the Townhome Board; (b) state that an eligible candidate has fifteen (15) days to respond to the Solicitation Notice and request to be placed on the ballot; and (c) must be: (1) mailed to

position on the Townhome Board; (b) state that an eligible candidate has fifteen (15) days to respond to the Solicitation Notice and request to be placed on the ballot; and (c) must be: (1) mailed to each Townhome Member; (2) e-mailed to each Townhome Member that has registered their e-mail address with the Townhome Association; or (3) posted in a conspicuous manner reasonably designed to provide notice to Townhome Members, such as: (i) within common area or, with the Townhome Member's consent, on other conspicuously located privately owned property within the subdivision; or (ii) on any website maintained by the Townhome Association or other internet media.

ARTICLEV MEETINGS OF DIRECTORS Section 5.1. Development Period. The provisions of this Article V do not apply to Townhome Board meetings during the Development Period (as defined in the Development Area Declaration) during which period the Townhome Board may take action by unanimou s written consent in lieu of a meeting pursuant to Section 5.10, except with respect to a meeting conducted for the purpose of: (a) adopting or amending the Townhome Documents (i.e., declarations, bylaws, rules, and regulations); (b) increasing the amount of Regular Townhome Assessments of the Townhome Association or adopting or increasing a Special Townhome Assessment; (c) electing non-Declarant Townhome Board members or 4827-2004-268lv.2 57160-13 7 LEXINGTON EST ATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws establishing a process by which those members are elected; or (d) changing the voting rights of Townhome Members.

Section 5.2. Definition of Townhome Board Meetings. A meeting of the Townhome Board means a deliberation between a quorum of the Townhome Board, or between a quorum of the

rights of Townhome Members.

Section 5.2. Definition of Townhome Board Meetings. A meeting of the Townhome Board means a deliberation between a quorum of the Townhome Board, or between a quorum of the Townhome Board and another person, during which Townhome Association business is considered and the Townhome Board takes formal action.

Section 5.3. Regular Meetings. Regular meetings of the Townhome Board shall be held annually or such other frequency as determined by the Townhome Board, at such place and hour as may be fixed from time to time by resolution of the Townhome Board.

Section 5.4. Special Meetings. Special meetings of the Townhome Board shall be held when called by the President of the Townhome Association, or by any two Directors, after not less than three (3) days' notice to each Director.

Section 5.5. Quorum. A Majority of the number of Directors shall constitute a quorum for the transaction of business. Every act or decision done or made by a Majority of the Directors present at a duly held meeting at which a quorum is present shall be regarded as the act of the Townhome Board.

Section 5.6. Open Townhome Board Meetings . All regular and special Townhome Board meetings must be open to Owners. However, the Townhome Board has the right to adjourn a meeting and reconvene in closed executive session to consider actions involving: (a) personnel; (b) pending or threatened litigation; (c) contract negotiations; (d) enforcement actions; (e) confidential communications with the Townhome Association's attorney; (f) matters involving the invasion of privacy of individual Owners, or matters that are to remain confidential by request of the affected parties and agreement of the Townhome Board. Following an executive session, any decision made by the Townhome Board in

al Owners, or matters that are to remain confidential by request of the affected parties and agreement of the Townhome Board. Following an executive session, any decision made by the Townhome Board in executive session must be summarized orally in general terms and placed in the minutes. The oral summary must include a general explanation of expenditures approved in executive session.

Section 5.7. location. Except if otherwise held by electronic or telephonic means, a Townhome Board meeting must be held in the county in which the Development Area is located or in a county adjacent to that county, as determined in the discretion of the Townhome Board.

Section 5.8. Record; Minutes. The Townhome Board shall keep a record of each regular or special Townhome Board meeting in the form of written minutes of the meeting. The Townhome Board shall make meeting records, including approved minutes, available to a Townhome Member for inspection and copying on the Townhome Member's written request to the Townhome Association 's managing agent at the address appearing on the most recently filed management certificate or, if there is not a managing agent, to the Townhome Board.

Section 5.9. Notices. Townhome Members shall be given notice of the date, hour, place, and general subject of a regular or special board meeting, including a general description of any matter to be brought up for deliberation in executive session. The notice shall be: (a) mailed to each Townhome Member not later than the tenth (10th) day or earlier than the sixtieth (60th} day before the date of the meeting; or (b) provided at least seventy-two (72) hours before the start of the meeting by: (i) posting the notice in a conspicuous manner reasonably designed to provide notice to Townhome Members in a place 8

r (b) provided at least seventy-two (72) hours before the start of the meeting by: (i) posting the notice in a conspicuous manner reasonably designed to provide notice to Townhome Members in a place 8 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2-Bylaws 4827-2004-2681v.2 57160-13 located on common area or on any website maintained by the Townhome Association; and {ii) sending the notice by e-mail to each Townhome Member who has registered an e-mail address with the Townhome Association. It is the Townhome Member's duty to keep an updated e-mail address registered with the Townhome Association. The Townhome Board may establish a procedure for registration of email addresses, which procedure may be required for the purpose of receiving notice of Townhome Board meetings. If the Townhome Board recesses a regular or special Townhome Board meeting to continue the following regular business day, the Townhome Board is not required to post notice of the continued meeting if the recess is taken in good faith and not to circumvent this Section. If a regular or special Townhome Board meeting is continued to the following regular business day, and on that following day the Townhome Board continues the meeting to another day, the Townhome Board shall give notice of the continuation in at least one manner as set forth above within two (2) hours after adjourning the meeting being continued.

Section 5.10. Unanimous Consent. During the Development Period, Directors may vote by unanimous written consent. Unanimous written consent occurs if all Directors individually or collectively consent in writing to a Townhome Board action. The written consent must be filed with the minutes of Townhome Board meetings. Action by written consent shall be in lieu of a meeting and has the same

y consent in writing to a Townhome Board action. The written consent must be filed with the minutes of Townhome Board meetings. Action by written consent shall be in lieu of a meeting and has the same force and effect as a unanimous vote of the Directors. As set forth in Section 5.1, Directors may not vote by unanimous consent if the Directors are considering any of the following actions: (a) adopting or amending the Townhome Documents (i.e., declarations, bylaws, rules, and regulations); (b) increasing the amount of Regular Townhome Assessments of the Townhome Association or adopting or increasing a Special Townhome Assessment; (c) electing non-Declarant Townhome Board members or establishing a process by which those members are elected; or (d) changing the voting rights of Townhome Members.

Section 5.11. Meeting Without Prior Notice. The Townhome Board may take action outside a meeting, including voting by electronic or telephonic means, without prior notice to the Townhome Members if each Townhome Board member is given a reasonable opportunity (i) to express his or her opinions to all other Townhome Board members and (ii) to vote. Any action taken without notice lo Townhome Members must be summarized orally, including an explanation of any known actual or estimated expenditures approved at the meeting, and documented in the minutes of the next regular or special Townhome Board meeting. The Townhome Board may not, unless done in an open meeting for which prior notice was given to the Townhome Members pursuant to Section 5.9 above, consider or vote on: (a) fines; (b) damage assessments; (c) the initiation of foreclosure actions; (d) the initiation of enforcement actions, excluding temporary restraining orders or violations involving a threat to health or

ines; (b) damage assessments; (c) the initiation of foreclosure actions; (d) the initiation of enforcement actions, excluding temporary restraining orders or violations involving a threat to health or appeals from a denial of architectural control approval; (h) a suspension of a right of a particular Townhome Member before the Townhome Member has an opportunity to attend a Townhome Board meeting to present the Townhome Member's position, including any defense, on the issue; (i) the lending or borrowing of money; G) the adoption of any amendment of a dedicatory instrument; (k) the approval of an annual budget or the approval of an amendment of an annual budget that increases the budget by more than 10 percent (10%); (I) the sale or purchase of real property; (m) the filling of a vacancy on the Townhome Board; (n) the construction of capital improvements other than the repair, replacement, or enhancement of existing capital improvements; or (o) the election of an officer.

Section 5.12. Telephone and Electronic Meetings. Any action permitted to be taken by the Townhome Board may be taken by telephone or electronic methods provided that: {1) each Townhome Board member may hear and be heard by every other Townhome Board member; (2) except for any 9 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws 4827-2004-268lv .2 57160-13 portion of the meeting conducted in executive session: (i) all Members in attendance at the meeting may hear all Townhome Board members; and (ii) any Townhome Members are allowed to listen using any electronic or telephonic communication method used or expected to be used by a participating

meeting may hear all Townhome Board members; and (ii) any Townhome Members are allowed to listen using any electronic or telephonic communication method used or expected to be used by a participating Townhome Board member at the same meeting; and (3) the notice of the Townhome Board meeting provides instructions to the Townhome Members on how to access the electronic or telephonic communication method used in the meeting. Participation in such a meeting constitutes presence in person at the meeting, except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

ARTICLE VI POWERS AND DUTIES OF THE TOWN HOME BOARD Section 6.1. Powers. The Townhome Board shall have power and duty to undertake any of the following actions, in addition to those actions to which the Townhome Association is authorized to take in accordance with the Development Area Declaration: (a) adopt, amend, revoke, record, and publish the Townhome Rules; (b) exercise for the Townhome Association all powers, duties and authority vested in or related to the Townhome Association and not reserved to the membership by other provisions of the Townhome Documents; (c) to enter into any contract or agreement with a municipal agency or utility company to provide electric utility service to all or any portion of the Development Area; (d) declare the office of a member of the Townhome Board to be vacant in the event such member shall be absent from three (3) consecutive regular meetings of the Townhome Board; (e) employ such employees as they deem necessary, and to prescribe their duties; (f) as more fully provided in the Development Area Declaration, to:

consecutive regular meetings of the Townhome Board; (e) employ such employees as they deem necessary, and to prescribe their duties; (f) as more fully provided in the Development Area Declaration, to: (1) fix the amount of the Townhome Assessments against each Lot in advance of each annual assessment period and any other assessments provided by the Development Area Declaration; and (2) foreclose the lien against any property for which Townhome Assessments are not paid within thirty (30) days after due date or to bring an action at law against the Owner personally obligated to pay the same; (g) issue, or to cause an appropriate officer to issue, upon demand by any person, a certificate setting forth whether or not any Townhom e Assessment has been paid and to levy a reasonable charge for the issuance of these certificates (it being understood that if a certificate states that an Townhome Assessment has been paid, such certificate shall be conclusive evidence of such payment); (h) procure and maintain adequate liability and hazard insurance on property owned by the Townhome Association; (i) cause all officers or employees having fiscal responsibilities to be bonded, as it may deem appropriate; and 4827-2004-2681v.2 57160-13 10 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws (j) exercise such other and further powers or duties as provided in the Development Area Declaration or by law.

ARTICLE VII OFFICERS AND THEIR DUTIES Section 7.1. Enumeration of Offices. The officers of the Townhome Association shall be a President and a Vice-President, who shall at all times be members of the Townhome Board, a Secretary and a Treasurer, and such other officers as the Townhome Board may from time to time create by resolution.

nt and a Vice-President, who shall at all times be members of the Townhome Board, a Secretary and a Treasurer, and such other officers as the Townhome Board may from time to time create by resolution.

Section 7.2. Election of Officers. The election of officers shall take place at the first meeting of the Townhome Board following each annual meeting of the Townhome Members.

Section 7.3. Term. The officers of the Townhome Association shall be elected annually by the Townhome Board and each shall hold office for one (1) year unless he resigns sooner, or shall be removed or otherwise disqualified to serve.

Section 7.4. Special Appointments. The Townhome Board may elect such other officers as the affairs of the Townhome Association may require, each of whom shall hold office for such period, have such authority, and perform such duties as the Townhome Board may, from time to time, determine.

Section 7.5. Resignation and Removal. Any officer may be removed from office with or without cause by the Townhome Board. Any officer may resign at any time by giving written notice to the Townhome Board, the President, or the Secretary. Such resignation shall take effect on the date of receipt of such notice or at any later time specified therein, and unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 7.6. Vacancies. A vacancy in any office may be filled through appointment by the Townhome Board. The officer appointed to such vacancy shall serve for the remainder of the term of the officer he or she replaces.

Section 7.7. Multiple Offices. The offices of Secretary and Treasurer may be held by the same person. No person shall simultaneously hold more than one of any of the other offices except in the case

.

Section 7.7. Multiple Offices. The offices of Secretary and Treasurer may be held by the same person. No person shall simultaneously hold more than one of any of the other offices except in the case of special offices created pursuant to Section 7.4.

Section 7.8. Duties. The duties of the officers are as follows: (a) President. The President shall preside at all meetings of the Townhome Board; shall see that orders and resolutions of the Townhome Board are carried out; shall sign all leases, mortgages , deeds and other written instruments and shall co-sign all checks and promissory notes.

(b) Vice President. The Vice President, if any, shall generally assist the President and shall have such powers and perform such duties and services as shall from time to time be prescribed or delegated to him by the President or the Townhome Board.

{c) Secretary. The Secretary shall record the votes and keep the minutes of all meetings and proceedings of the Townhome Board and of the Townhome Members; serve notice of meetings of the 4827-2004-268lv.2 57160-13 11 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws Townhome Board and of the Townhome Members; keep appropriate current records showing the Townhome Members together with their addresses; and shall perform such other duties as required by the Townhome Board.

(d) Assistant Secretaries. Each Assistant Secretary shall generally assist the Secretary and shall have such powers and perform such duties and services as shall from time to time be prescribed or delegated to him or her by the Secretary, the President, the Townhome Board or any committee established by the Townhome Board.

(e) Treasurer. The Treasurer shall receive and deposit in appropriate bank accounts all

m or her by the Secretary, the President, the Townhome Board or any committee established by the Townhome Board.

(e) Treasurer. The Treasurer shall receive and deposit in appropriate bank accounts all monies of the Townhome Association and shall disburse such funds as directed by resolution of the Townhome Board; shall sign all checks and promissory notes of the Townhome Association; keep proper books of account in appropriate form such that they could be audited by a public accountant whenever ordered by the Townhome Board or the membership; and shall prepare an annual budget and a statement of income and expenditures to be presented to the membership at its regular meeting, and deliver a copy of each to the Townhome Members.

Section 7.9. Execution of Instruments. Except when the Townhome Documents require execution of certain instruments by certain individuals, the Townhome Board may authorize any person to execute instruments on behalf of the Townhome Association, including without limitation checks from the Townhome Association's bank account. In the absence of Townhome Board designation, and unless otherwise provided herein, the President and the Secretary are the only persons authorized to execute instruments on behalf of the Townhome Association.

ARTICLE VIII OTHER COMMITTEES OF THE TOWNHOME BOARD The Townhome Board may, by resolution adopted by affirmative vote of a Majority of the number of Directors fixed by these Townhome Bylaws, designate two or more Directors (with such alternates, if any, as may be deemed desirable) to constitute another committee or committees for any purpose; provided, that any such other committee or committees shall have and may exercise only the

lternates, if any, as may be deemed desirable) to constitute another committee or committees for any purpose; provided, that any such other committee or committees shall have and may exercise only the power of recommending action to the Townhome Board and of carrying out and implementing any instructions or any policies, plans, programs and rules theretofore approved, authorized and adopted by the Townhome Board.

ARTICLE IX BOOKS AND RECORDS The books, records and papers of the Townhome Association shall at all times, during reasonable business hours, be subject to inspection by any Townhome Member. The Townhome Documents shall be available for inspection by any Townhome Member at the principal office of the Townhome Association, where copies may be purchased at reasonable cost.

ARTICLEX TOWNHOME ASSESSMENTS As more fully provided in the Development Area Declaration, each Townhome Member is obligated to pay to the Townhome Association Townhome Assessments which are secured by a LEXINGTON ESTATES TOWNHOME COMMUNITY MANUA L Attachment 2-Bylaws continuing lien upon the property against which the Townhome Assessments are made. Townhome Assessments shall be due and payable in accordance with the Development Area Declaration.

ARTICLE XI CORPORATE SEAL The Townhome Association may, but shall have no obligation to, have a seal in a form adopted by the Townhome Board.

ARTICLE XII AMENDMENTS These Townhome Bylaws may be amended by: (i) the Declarant until expiration or termination of the Development Period; or (ii) a Majority vote of the Townhome Board with the advance written consent of the Declarant until expiration or termination of the Development Period.

ARTICLE XIII INDEMNIFICATION OF DIRECTORS AND OFFICERS

Majority vote of the Townhome Board with the advance written consent of the Declarant until expiration or termination of the Development Period.

ARTICLE XIII INDEMNIFICATION OF DIRECTORS AND OFFICERS The Townhome Association shall indemnify every Director, Officer or Committee Member against, and reimburse and advance to every Director, Officer or Committee Member for, all liabilities, costs and expenses' incurred in connection with such directorship or office and any actions taken or omitted in such capacity to the greatest extent permitted under the Texas Business Organizations Code and all other applicable laws at the time of such indemnification, reimbursement or advance payment; provided, however, no Director, Officer or Committee Member shall be indemnified for: (a) a breach of duty of loyalty to the Townhome Association or its Members; (b) an act or omission not in good faith or that involves intentional misconduct or a knowing violation of the law; (c) a transaction from which such Director, Officer or Committee Member received an improper benefit, whether or not the benefit resulted from an action taken within the scope of directorship or office; or (d) an act or omission for which the liability of such Director, Officer or Committee Member is expressly provided for by statute.

ARTICLE XIV MISCELLANEOUS Section 14.1. Fiscal Year. The fiscal year of the Townhome Association shall begin on the first day of January and end on the 31st day of December of every year, except that the first fiscal year shall begin on the date of incorporation.

Section 14.2. Review of Statutes and Court Rulings. Users of these Townhome Bylaws should also review statutes and court rulings that may modify or nullify provisions of this document or its

poration.

Section 14.2. Review of Statutes and Court Rulings. Users of these Townhome Bylaws should also review statutes and court rulings that may modify or nullify provisions of this document or its enforcement, or may create rights or duties not anticipated by these Townhome Bylaws.

Section 14.3. Conflict. In the case of any conflict between the Townhome Certificate and these Townhome Bylaws, the Townhome Certificate shall control; and in the case of any conflict between the Development Area Declaration and these Townhome Bylaws, the Development Area Declaration shall control. In the case of any conflict between these Townhome Bylaws and any provision of the applicable laws of the State of Texas, the conflicting aspect of the Townhome Bylaws provision is null and void, but all other provisions of these Townhome Bylaws remain in full force and effect.

4827-2004-2681v.2 57160-13 13 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws Section 14.4. Interpretation. The effect of a general statement is not limited by the enumerations of specific matters similar to the general. The captions or articles and sections are inserted only for convenience and are in no way to be construed as defining or modifying the text to which they refer. The singular is construed to mean the plural, when applicable, and the use of masculine or neuter pronouns includes the feminine.

Section 14.5. No Waiver. No restriction, condition, obligation, or covenant contained in these Townhome Bylaws may be deemed to have been abrogated or waived by reason of failure to enforce the same, irrespective of the number of violations or breaches thereof which may occur.

4827-2004-268lv.2 57160-13 14 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws A TI ACHMENT 3

ce the same, irrespective of the number of violations or breaches thereof which may occur.

4827-2004-268lv.2 57160-13 14 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 2 -Bylaws A TI ACHMENT 3 LEXINGTON ESTATES TOWNHOME ASSOCIATION. INC.

FINE AND ENFORCEMENT POLICY 1. Background. Certain Lots within Lexington Estates are subject to that certain Lexington Estates Development Area Declaration [TownhomesJ recorded in the Official Public Records of Collin County, Texas, as the same may be amended from time to time ("Development Area Declaration"). In accordance with the Development Area Declaration, Lexington Estates Townhome Association, Inc., a Texas non-profit corporation (the "Townhome Association") was created to administer the terms and provisions of the Development Area Declaration. Unless the Development Area Declaration or Applicable Law expressly provides otherwise, the Townhome Association acts through a majority of its board of directors (the "Townhome Board"). The Townhome Association is empowered to enforce the covenants, conditions and restrictions of the Development Area Declaration, Townhome Certificate, Townhome Bylaws, Townhome Community Manual, and any rules and regulations promulgated by the Townhome Association pursuant to the Development Area Declaration, as each may be adopted and amended from time to time (collectively, the "Townhome Documents"), including the obligation of Owners to pay assessments pursuant to the terms and provisions of the Development Area Declaration and the obligations of the Owners to compensate the Townhome Association for costs incurred by the Townhome Association for enforcing violations of the Townhome Documents.

The Townhome Board hereby adopts this Fine and Enforcement Policy to establish equitable

Association for costs incurred by the Townhome Association for enforcing violations of the Townhome Documents.

The Townhome Board hereby adopts this Fine and Enforcement Policy to establish equitable policies and procedures for the levy of fines within the Townhome Association in compliance with the Chapter 209 of the Texas Property Code, titled the "Texas Residential Property Owners Protection Act," as it may be amended (the "Act"). To the extent any provision within this policy is in conflict with the Act or any other applicable law, such provision shall be modified to comply with the applicable law.

Terms used in this policy, but not defined, shall have the meaning subscribed to such term in the Townhome Documents.

2. Policy. The Townhome Association uses fines to discourage violations of the Townhome Documents, and to encourage compliance when a violation occurs -not to punish violators or generate revenue for the Townhome Association. Although a fine may be an effective and efficient remedy for certain types of violations or violators, it is only one of several methods available to the Townhome Association for enforcing the Townhome Documents. The Townhome Association's use of fines does not interfere with its exercise of other rights and remedies for the same violation.

3. Owner's Liability. An Owner is liable for fines levied by the Townhome Association for violations of the Townhome Documents by the Owner and the relatives, guests, employees, and agents of the Owner and residents. Regardless of who commits the violation, the Townhome Association may direct all communications regarding the violation to the Owner.

4. Amount. The Townhome Association may set fine amounts on a case by case basis, provided the

e violation, the Townhome Association may direct all communications regarding the violation to the Owner.

4. Amount. The Townhome Association may set fine amounts on a case by case basis, provided the fine is reasonable in light of the nature, frequency, and effects of the violation. The Townhome Association may establish a schedule of fines for certain types of violations. The amount and 1 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 3 -Fine and Enforcement Policy 4827-2004-2681v.2 57160-13 5. cumulative total of a fine must be reasonable in comparison to the violation, and should be uniform for similar violations of the same provision of the Townhome Documents. If the Townhome Association allows fines to accumulate, the Townhome Association may establish a maximum amount for a particular fine, at which point the total fine will be capped.

Violation Notice. Except as set forth in Section S(C) below, before levying a fine, the Townhome Association will give (i) a written violation notice via certified mail to the Owner (at the Owner's last known address as shown in the Townhome Association records) (the "Violation Notice") and (ii) an opportunity to be heard, if requested by the Owner. The Townhome Association 's Violation Notice will contain the following items: (1) the date the Violation Notice is prepared or mailed; (2) a description of the violation or property damage that is the basis for the Individual Townhome Assessment, suspension action, or other charge; (3) a reference to the rule or provision that is being violated; (4) a description of the action required to cure the violation and a reasonable timeframe in which the violation is required to be cured to avoid the fine or

rule or provision that is being violated; (4) a description of the action required to cure the violation and a reasonable timeframe in which the violation is required to be cured to avoid the fine or suspension; (5) the amount of the possible fine; (6) a statement that no later than the thirtieth (30th) day after the date the notice was mailed, the Owner may request a hearing pursuant to Section 209.007 of the Texas Property Code, and further, if the hearing held pursuant to Section 209.007 of the Texas Property Code is to be held by a committee appointed by the Townhome Board, a statement notifying the Owner that he or she has the right to appeal the committee 's decision to the Townhome Board by written notice to the Townhome Board; and (7) a statement that the Owner may have special rights or relief related to the enforcement action under federal law, including the Servicemembers Civil Relief Act (50 U.S.C. app. section et seq.), if the Owner is serving on active military duty. The Violation Notice sent out pursuant to this paragraph is further subject to the following: A. First Violation. If the Owner has not been given notice and a reasonable opportunity to cure the same or similar violation within the preceding six (6) months, the Violation Notice will state those items set out in (1) -(7) above, along with a reasonable timeframe by which the violation must be cured to avoid the fine. The Violation Notice must state that any future violation of the same rule may result in the levy of a fine. A fine pursuant to the Schedule of Fines may be levied if an Owner does not cure the violation within the timeframe set forth in the notice.

B.

C. Uncurable ViolationNiolation of Public Health or Safety. If the violation is of an

le of Fines may be levied if an Owner does not cure the violation within the timeframe set forth in the notice.

B.

C. Uncurable ViolationNiolation of Public Health or Safety. If the violation is of an uncurable nature or poses a threat to public health or safety (as exemplified in Section 209.006 of the Texas Property Code), then the Violation Notice shall state those items set out in (1), (2), (3), (5), (6), and (7) above, and the Townhome Association shall have the right to exercise any enforcement remedy afforded to it under the Townhome Documents, including but not limited to the right to levy a fine pursuant to the Schedule of Fines.

Repeat Violation without Attempt to Cure. If the Owner has been given a Violation Notice and a reasonable opportunity to cure the same or similar violation within the preceding six (6) months but commits the violation again, then the Owner shall not be entitled to an additional Violation Notice or a hearin& pursuant to Section 209.007 of the Texas Property Code. and the 2 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 3 -Fine and Enforcement Policy 4827-2004-2681 v.2 57160-13 6.

7. Townhome Association shall have the right to exercise any enforcement remedy afforded to it under the Townhome Documents, including but not limited to the right to levy a fine pursuant to the Schedule of Fines. After an Owner has been provided a Violation Notice as set forth herein and assessed fines in the amounts set forth in the Schedule of Fines, if the Owner has never cured the violation in response to any Violation Notices sent or any fines levied, then the Townhome Board, in its sole discretion, may determine that such a circumstance is a continuous violation which warrants a levy of a fine based upon a daily,

Notices sent or any fines levied, then the Townhome Board, in its sole discretion, may determine that such a circumstance is a continuous violation which warrants a levy of a fine based upon a daily, monthly, or quarterly amount as determined by the Townhome Board.

Violation Hearing. If the Owner is entitled to an opportunity to cure the violation, then the Owner has the right to submit a written request to the Townhome Association for a hearing before the Townhome Board or a committee appointed by the Townhome Board to discuss and verify the facts and resolve the matter. To request a hearing, the Owner must submit a written request (the "Request'') to the Townhome Association's manager (or the Townhome Board if there is no manager) within thirty (30) days after receiving the Violation Notice. The Townhome Association must then hold the hearing requested no later than thirty (30) days after the Townhome Board receives the Request. The Townhome Board must notify the Owner of the date, time, and place of the hearing at least ten (10) days before the date of the hearing. The hearing will be scheduled to provide a reasonable opportunity for both the Townhome Board and the Owner to attend. The Townhome Board or the Owner may request a postponement , and if requested, a postponement shall be granted for a period of not more than ten (10) days.

Additional postponements may be granted by agreement of the parties. Notwithstanding the foregoing, the Townhome Association may exercise its other rights and remedies as set forth in Section 209.007(d) and (e) of the Texas Property Code. Any hearing before the Townhome Board will be held in a closed or executive session of the Townhome Board. At the hearing, the

es as set forth in Section 209.007(d) and (e) of the Texas Property Code. Any hearing before the Townhome Board will be held in a closed or executive session of the Townhome Board. At the hearing, the Townhome Board will consider the facts and circumstances surrounding the violation. The Owner shall attend the hearing in person, but may be represented by another person (i.e., attorney) during the hearing, upon advance written notice to the Townhome Board. If an Owner intends to make an audio recording of the hearing, such Owner's request for hearing shall include a statement noticing the Owner's intent to make an audio recording of the hearing, otherwise, no audio or video recording of the hearing may be made, unless otherwise approved by the Townhome Board. The minutes of the hearing must contain a statement of the results of the hearing and the fine, if any, imposed. A copy of the Violation Notice and Request should be placed in the minutes of the hearing. If the Owner appears at the meeting, the notice requirements will be deemed satisfied. Unless otherwise agreed by the Townhome Board, each hearing shall be conducted in accordance with the agenda attached hereto as Exhibit A.

Due Date. Fine and/or damage charges are due immediately if the violation is uncurable or poses a threat to public health or safety. If the violation is curable, the fine and/or damage charges are due immediately after the later of: (1) the date that the cure period set out in the first Violation Notice ends and the Owner does not attempt to cure the violation or the attempted cure is unacceptable to Townhome Association, or (2) if a hearing is requested by the Owner, such fines or damage charges will be due immediately after the Townhome Board's final decision on the

mpted cure is unacceptable to Townhome Association, or (2) if a hearing is requested by the Owner, such fines or damage charges will be due immediately after the Townhome Board's final decision on the matter, assuming that a fine or damage charge of some amount is confirmed by the Townhome Board at such hearing.

3 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 3 -Fine and Enforcement Policy 4827-2004-2681v .2 57160-13 8.

9.

10.

11. Lien Created. The payment of each fine and/or damage charge levied by the Townhome Board against the Owner of a Lot is, together with interest as provided in Section 5.10 of the Development Area Declaration and all costs of collection, including attorney's fees as herein provided, secured by the lien granted to the Townhome Association pursuant to Section 5.2.2 of the Development Area Declaration. The fine and/or damage charge will be considered a Townhome Assessment for the purpose of this Article and will be enforced in accordance with the terms and provisions governing the enforcement of assessments pursuant to Article 5 of the Development Area Declaration.

Levy of Fine. Any fine levied shall be reflected on the Owner's periodic statements of account or delinquency notices.

Foreclosure. The Townhome Association may not foreclose its assessment lien on a debt consisting solely of fines.

Amendment of Policy. This policy may be revoked or amended from time to time by the Townhome Board. This policy will remain effective until the Townhome Association records an amendment to this policy in the county's official public records.

4 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachm ent 3 -Fine and Enforcement Policy 4827-2004-268lv.2 57160-13 Schedule of Fines

amendment to this policy in the county's official public records.

4 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachm ent 3 -Fine and Enforcement Policy 4827-2004-268lv.2 57160-13 Schedule of Fines The Townhome Board has adopted the following general schedule of fines. The number of notices set forth below does not mean that the Townhome Board is required to provide each notice prior to exercising additional remedies as set forth in the Townhome Documents. The Townhome Board may elect to pursue such additional remedies at any time in accordance with applicable law. The Townhome Board also reserves the right to set fine amounts on a case by case basis, provided the fine is reasonable in light of the nature, frequency , and effect of the violation: FINES+: Fine Amount: New Violation: $25.00 (if a curable Notice of Violation violation, may be avoided if Owner cures the violation by the time specified in the notice) Fine Amount: Repeat Violation (No Right to Cure or 1st Notice $50.00 Uncurable Violation): 2nd Notice $75.00 3rd Notice $100.00 4th Notice $125.00 Continuous Violation: Continuous Violation Notice AmountTBD and/or frequency of the violation.

4827-2004-268lv.2 57160-13 5 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 3-Fine and Enforcement Policy EXHIBIT A HEARING BEFORE THE TOWNHOME BOARD Note: An individual will act as the presiding hearing officer. The hearing officer will provide introductory remarks and administer the hearing agenda.

I. Introduction: Hearing Officer.

II. Presentation of Facts: Hearing Officer.

[Presentations] III. Discussion: Hearing Officer.

IV. Resolution: Hearing Officer.

arks and administer the hearing agenda.

I. Introduction: Hearing Officer.

II. Presentation of Facts: Hearing Officer.

[Presentations] III. Discussion: Hearing Officer.

IV. Resolution: Hearing Officer.

4827-2004 -268lv.2 57160-13 The Townhome Board has convened for the purpose of providing [Owner) an opportunity to be heard regarding a notice of violation of the Townhome Documents sent by the Townhome Association.

The hearing is being conducted as required by Section 209.007(a) of the Texas Property Code, and is an opportunity for [Owner] to discuss, verify facts, and attempt to resolve the matter at issue. The Townhome Board may be able to resolve the dispute at the hearing or the Townhome Board may elect to take the matter under advisement and conclude the hearing. If the matter is taken under advisement, a final decision will be communicated in writing within fifteen (15) days.

This portion of the hearing is to permit a representative of the Townhome Association the opportunity to describe the violation and to present photographs or other material relevant to the violation, fines or penalties. After the Townhome Association 's representative has finished his presentation, the Owner or its representative will be given the opportunity to present photographs or other material relevant to the violation, fines or penalties. The Townhome Board may ask questions during either party's presentation. It is requested that questions by \Owner] be held until completion of the presentation by the Townhome Association's representative.

This portion of the hearing is to permit the Townhome Board and [Owner] to discuss factual disputes relevant to the violation. Discussion regarding any fine or penalty is also appropriate. Discussion should be productive and designed to

rmit the Townhome Board and [Owner] to discuss factual disputes relevant to the violation. Discussion regarding any fine or penalty is also appropriate. Discussion should be productive and designed to seek, if possible, a mutually agreed upon resolution of the dispute. The Hearing Officer retains the right to conclude this portion of the hearing at any time.

This portion of the hearing is to permit discussion between the Townhome Board and [Owner] regarding the final terms of a mutually agreed upon resolution , if such resolution was agreed upon during the discussion phase of the hearing. If no mutually agreed upon resolution was reached, the Hearing Officer may: (i) request that the Townhome Board enter into executive session to discuss the matter; (ii) request that the Townhom e Board take the matter under advisement and adjourn the hearing; or (iii) adjourn the hearing.

6 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 3 -Fine and Enforcement Policy ATTACHMENT 4 LEXINGTON EST A TES TOWN HOME ASSOCIATION , INC.

TOWNH OME ASSESSMENT COLLECTIO N POLICY The townhome s located within Lexington Estates is a community (the "Community") created by and subject to Lexington Estates Development Area Declaration (Townhomes) recorded in the Official Public Records of Collin County, Texas, and any amendment s or supplements thereto ("Development Area Declaration" ). The operation of the Community is vested in Lexington Estates Townhome Association, Inc. (the "Townhome Association"), acting through its board of directors (the "Townhome Board"). The Townhome Association is empowered to enforce the covenants, conditions and restrictions of the Development Area Declaration, Townhome Certificate, Townhome Bylaws, Townhome Community

home Board"). The Townhome Association is empowered to enforce the covenants, conditions and restrictions of the Development Area Declaration, Townhome Certificate, Townhome Bylaws, Townhome Community Manual, and any rules and regulation s promulgated by the Townhome Association pursuant to the Development Area Declaration, as adopted and amended from time to time (collectively, the "Townhome Documents"), including the obligation of Owners to pay Townhome Assessments pursuant to the terms and provisions of the Townhome Documents.

The Townhome Board hereby adopts this Townhome Assessment Collection Policy to establish equitable policies and procedure s for the collection of Townhome Assessments levied pursuant to the Townhome Document s. Terms used in this policy, but not defined, shall have the meaning subscribed to such term in the Townhome Documents.

Section 1. DELINQUENCIES, LA TE CHARGES & INTEREST 1-A. Due Date. An Owner will timely and fully pay Townhome Assessments. Regular Townhome Assessments are assessed annually and are due and payable on the first calendar day of the month at the beginning of the fiscal year, or in such other manner as the Townhome Board may designate in its sole and absolute discretion.

1-B. Delinc;iuent. Any Townhome Assessment that is not fully paid when due is delinquent. When the account of an Owner becomes delinquent, it remains delinquent until paid in full -including collection costs, interest and late fees.

1-C. Late Fees & Interest. If the Townhome Association does not receive full payment of a Townhome Assessment by 5:00 p.m. on the due date established by the Townhome Board, the Townhome Association may levy a late fee of $25 per month and/or interest at the highest rate allowed by

nt of a Townhome Assessment by 5:00 p.m. on the due date established by the Townhome Board, the Townhome Association may levy a late fee of $25 per month and/or interest at the highest rate allowed by applicable usury laws then in effect on the amount of the Townhome Assessment from the due date thereof (or if there is no such highest rate, then at the rate of 1 and 1/2% per month) until paid in full.

1-D. Liability for Collection Costs. The defaulting Owner is liable to the Townhome Association for the cost of title reports, credit reports, certified mail, long distance calls, court costs, filing fees, and other reasonable costs and attorney's fees incurred by the Townhome Association in collecting the delinquency.

1-E. Insufficient Funds. The Townhome Association may levy a charge of $25 for any check returned to the Townhome Association marked "not sufficient funds" or the equivalent.

4827-2004-2681v.2 57160-13 1 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachmen t 4 -Townhom e Assessment Collection Policy 1-F. Waiver. Properly levied collection costs, late fees, and interest may only be waived by a Majority of the Townhome Board.

Section 2. INSTALLMENTS & ACCELERATION If a Townhome Assessment, other than a Regular Townhome Assessment, is payable in installments, and if an Owner defaults in the payment of any installment, the Townhome Association may declare the entire Townhome Assessment in default and accelerate the due date on all remaining installments of the Townhome Assessment. A Townhome Assessment, other than a Regular Townhome Assessment, payable in installments may be accelerated only after the Townhome Association gives the Owner at least fifteen (15) days prior notice of the default and the Townhome Association's intent to

sessment, payable in installments may be accelerated only after the Townhome Association gives the Owner at least fifteen (15) days prior notice of the default and the Townhome Association's intent to accelerate the unpaid balance if the default is not timely cured. Following acceleration of the indebtedness, the Townhome Association has no duty to reinstate the installment program upon partial payment by the Owner.

Section 3. PAYMENTS 3-A. Application of Payments. After the Townhome Association notifies the Owner of a delinquency and the Owner's liability for late fees or interest, and collection costs, any payment received by the Townhorne Association shall be applied in the following order, starting with the oldest charge in each category, until that category is fully paid, regardless of the amount of payment, notations on checks, and the date the obligations arose: (1) Delinquent assessments (4) Other attorney's fees (2) Current assessments (5) Fines (3) Attorney fees and costs associated (6) Any other amount with delinquent assessments 3-B. Payment Plans. The Townhome Association shall offer a payment plan to a delinquent Owner with a minimum term of at least three (3) months from the date the payment plan is requested for which the Owner may be charged reasonable administrative costs and interest. The Townhome Association will determine the actual term of each payment plan offered to an Owner in its sole and absolute discretion. An Owner is not entitled to a payment plan if the Owner has defaulted on a previous payment plan in the last two (2) years. The Townhome Association is not required to make a payment plan available to a Townhome Member after the Delinquency Cure Period

ner has defaulted on a previous payment plan in the last two (2) years. The Townhome Association is not required to make a payment plan available to a Townhome Member after the Delinquency Cure Period allowed under Paragraph 5-B expires. If an Owner is in default at the time the Owner submits a payment, the Townhome Association is not required to follow the application of payments schedule set forth in Paragraph 3-A.

3-C. Form of Payment . The Townhome Association may require that payment of delinquent Townhome Assessments be made only in the form of cash, cashier's check, or certified funds.

3-0. Partial and Conditioned Payment. The Townhome Association may refuse to accept partial payment (i.e., less than the full amount due and payable) and payments to which the payer attaches conditions or directions contrary to the Townhome Board's policy for applying 2 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 4 -Townhome Assessment Collection Policy 4827-2004-2681v.2 57160-13 3-E.

3-F. payments. The Townhome Association's endorsement and deposit of a payment does not constitute acceptance. Instead, acceptance by the Townhome Association occurs when the Townhome Association posts the payment to the Owner's account. If the Townhome Association does not accept the payment at that time, it will promptly refund the payment to the payer. A payment that is not refunded to the payer within thirty (30} days after being deposited by the Townhome Association may be deemed accepted as to payment, but not as to words of limitation or instruction accompanying the payment. The acceptance by the Townhome Association of partial payment of delinquent Townhome Assessments does not waive the Townhome

but not as to words of limitation or instruction accompanying the payment. The acceptance by the Townhome Association of partial payment of delinquent Townhome Assessments does not waive the Townhome Association's right to pursue or to continue pursuing its remedies for payment in full of all outstanding obligations.

Notice of Payment. If the Townhome Association receives full payment of the delinquency after Recording a notice of lien, the Townhome Association will cause a release of notice of lien to be publicly Recorded, a copy of which will be sent to the Owner. The Townhome Association may require the Owner to prepay the cost of preparing and Recording the release.

Correction of Credit Report. If the Townhome Association receives full payment of the delinquency after reporting the defaulting Owner to a credit reporting service, the Townhome Association will report receipt of payment to the credit reporting service.

Section 4. LIABILITY FOR COLLECTION COSTS 4-A. Collection Costs. The defaulting Owner may be liable to the Townhome Association for the cost of title reports, credit reports, certified mail, long distance calls, filing fees, and other reasonable costs and attorney's fees incurred in the collection of the delinquency.

5-A.

5-B.

5-C. Section 5. COLLECTION PROCEDURES Delegation of Collection Procedures. From time to time, the Townhome Association may delegate some or all of the collection procedures, as the Townhome Board in its sole discretion deems appropriate, to the Townhome Association's Manager, an attorney, or a debt collector.

Delinquency Notices. If the Townhome Association has not received full payment of a Townhome Assessment by the due date, the Townhome Association may send written notice of

orney, or a debt collector.

Delinquency Notices. If the Townhome Association has not received full payment of a Townhome Assessment by the due date, the Townhome Association may send written notice of nonpayment to the defaulting Owner, by certified mail, stating: (a} the amount delinquent and the total amount of the payment required to make the account current, (b) the options the Owner has to avoid having the account turned over to a collection agent, as such term is defined in Texas Property Code Section 209.0064, including information regarding availability of a payment plan through the Townhome Association, and (c) that the Owner has thirty (30) days for the Owner to cure the delinquency before further collection action is taken (the "Delinquency Cure Period").

The Townhome Association's delinquency-related correspondence may state that if full payment is not timely received, the Townhome Association may pursue any or all of the Townhome Association's remedies, at the sole cost and expense of the defaulting Owner.

Verification of Owner Information. The Townhome Association may obtain a title report to determine the names of the Owners and the identity of other lien-holders, including the mortgage company .

3 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 4 -Townhome Assessment Collection Policy 4827-2004-2681v.2 57160-13 5-0.

5-E.

5-F.

5-G.

5-H.

5-1. Collection Agency. The Townhome Board may employ or assign the debt to one or more collection agencies.

Notification of Mortgage Lender. The Townhome Association may notify the Mortgage lender of the default obligations.

Notification of Credit Bureau. The Townhome Association may report the defaulting Owner to one or more credit reporting services.

Association may notify the Mortgage lender of the default obligations.

Notification of Credit Bureau. The Townhome Association may report the defaulting Owner to one or more credit reporting services.

Collection by Attorney. If the Owner's account remains delinquent for a period of ninety (90) days, the Manager of the Townhome Association or the Townhome Board shall refer the delinquent account to the Townhome Association's attorney for collection. In the event an account is referred to the Townhome Association's attorney, the Owner will be liable lo the Townhome Association for its legal fees and expenses. Upon referral of a delinquent account to the Townhome Association's attorney, the Townhome Association's attorney will provide the following notices and take the following actions unless otherwise directed by the Townhome Board: (1) (2) (3) (4) Initial Notice: Preparation of the Initial Notice of Demand for Payment Letter. If the account is not paid in full within 30 days (unless such notice has previously been provided by the Townhome Association), then Lien Notice: Preparation of the Lien Notice and Demand for Payment Letter and Recordation of a Notice of Unpaid Townhome Assessment Lien. If the account is not paid in full within 30 days, then Final Notice: Preparation of the Final Notice of Demand for Payment Letter and Intent to Foreclose and Notice of Intent to Foreclose to Lender. If the account is not paid in full within 30 days, then Foreclosure of Lien: Only upon specific approval by a majority of the Townhome Board.

Notice of Lien. The Townhome Association's attorney may cause a notice of the Townhome Association's Townhome Assessment lien against the Owner's home to be publicly Recorded. In

f the Townhome Board.

Notice of Lien. The Townhome Association's attorney may cause a notice of the Townhome Association's Townhome Assessment lien against the Owner's home to be publicly Recorded. In that event, a copy of the notice will be sent to the defaulting Owner and may also be sent to the Owner's Mortgagee.

Cancellation of Debt. If the Townhome Board deems the debt to be uncollectible, the Townhome Board may elect to cancel the debt on the books of the Townhome Association, in which case the Townhome Association may report the full amount of the forgiven indebtedness to the Internal Revenue Service as income to the defaulting Owner.

4 LEXINGTON EST ATES TOWNHOME COMMUNITY MANUAL Attachment 4 -Townhome Assessment Collection Policy 4827-2004-268lv.2 57160-13 6-A.

6-B.

6-C.

6-0.

6-E. Section 6. GENERAL PROVISIONS Independent Judgment. Notwithstanding the contents of this detailed policy, the officers, directors, Manager, and attorney of the Townhome Association may exercise their independent, collective, and respective judgment in applying this policy.

Other Rights. This policy is in addition to and does not detract from the rights of the Townhome Association to collect Townhome Assessments under the Townhome Documents and the laws of the State of Texas.

Limitations of Interest. The Townhome Association, and its officers, directors, Managers, and attorneys, intend to conform strictly to the applicable usury laws of the State of Texas.

Notwithstanding anything to the contrary in the Townhome Documents or any other document or agreement executed or made in connection with this policy, the Townhome Association will not in any event be entitled to receive or collect, as interest, a sum greater than the maximum

her document or agreement executed or made in connection with this policy, the Townhome Association will not in any event be entitled to receive or collect, as interest, a sum greater than the maximum amount permitted by applicable law. If from any circumstances whatsoever, the Townhome Association ever receives, collects, or applies as interest a sum in excess of the maximum rate permitted by law, the excess amount will be applied to the reduction of unpaid Townhome Assessments, or reimbursed to the Owner if those Townhome Assessments are paid in full.

Notices. Unless the Townhome Documents, applicable law, or this policy provide otherwise, any notice or other written communication given to an Owner pursuant to this policy will be deemed delivered to the Owner upon depositing same with the U.S. Postal Service, addressed to the Owner at the most recent address shown on the Townhome Association's records, or on personal delivery to the Owner. If the Townhome Association's records show that an Owner's property is owned by two (2) or more persons, notice to one co-Owner is deemed notice to all co-Owners .

Similarly, notice to one Occupant is deemed notice to all Occupants. Written communications to the Townhome Association, pursuant to this policy, will be deemed given on actual receipt by the Townhome Association's president, secretary, managing agent, or attorney.

Amendment of Policy. This policy may be amended from time to time by the Townhome Board.

5 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 4 -Townhome Assessment Collection Policy 4827-2004-2681v.2 57160-13 A IT ACHMENT 5 LEXINGTON EST ATES TOWNHOME ASSOCIATION. INC.

RECORDS INSPECTION, COPYING AND RETENTION POLICY

NITY MANUAL Attachment 4 -Townhome Assessment Collection Policy 4827-2004-2681v.2 57160-13 A IT ACHMENT 5 LEXINGTON EST ATES TOWNHOME ASSOCIATION. INC.

RECORDS INSPECTION, COPYING AND RETENTION POLICY Terms used but not defined in this policy will have the meaning subscribed to such terms in that certain Lexington Estates Development Area Declaration [Tow11homesl recorded in the Official Public Records of Collin County, Texas, as the same may be amended from time to time (the "Development Area Declaration").

Note: Texas statutes presently render null and void any restriction in the Development Area Declaration which restricts or prohibits the inspection, copying and/or retention of association records and files in violation of the controlling provisions of the Texas Property Code or any other applicable state law. The Townhome Board has adopted this policy in lieu of any express prohibition or any provision regulating such matters which conflict with Texas law, as set forth in the Development Area Declaration.

1. Written Fonn. The Townhome Association shall maintain its records in written form or in another form capable of conversion into written form within a reasonable time.

2. Request i11 Writing; Pay Estimated Costs In Advance. An Owner (or an individual identified as an Owner's agent, attorney or certified public accountant, provided the designation is in writing and delivered to the Townhome Association) may submit a written request via certified mail to the Townhome Association's mailing address or authorized representative listed in the management certificate to access the Townhome Association's records. The written request must include sufficient detail describing the books and records requested and whether the Owner desires to inspect or copy the

ificate to access the Townhome Association's records. The written request must include sufficient detail describing the books and records requested and whether the Owner desires to inspect or copy the records. Upon receipt of a written request, the Townhome Association may estimate the costs associated with responding to each request, which costs may not exceed the costs allowed pursuant to Texas Administrative Code Section 70.3, as may be amended from time to time (a current copy of which is attached hereto). Before providing the requested records, the Townhome Association will require that the Owner remit such estimated amount to the Townhome Association. The Townhome Association will provide a final invoice to the Owner on or before the 30th business day after the records are provided by the Townhome Association. If the final invoice includes additional amounts due from the requesting party, the additional amounts, if not reimbursed to the Townhome Association before the 30th business day after the date the invoice is sent to the Owner, may be added to the Owner's account as a Townhome Assessment. If the estimated costs exceeded the final invoice amount, the Owner is entitled to a refund, and the refund shall be issued to the Owner not later than the 30th business day after the date the final invoice is sent to the Owner.

3. Period. of lllspection. Within ten (10) business days from receipt of the written request, the Townhome Association must either: (1) provide the copies to the Owner; (2) provide available inspection dates; or (3) provide written notice that the Townhome Association cannot produce the documents within the ten (10) business days along with either: (i) another date within an additional

le inspection dates; or (3) provide written notice that the Townhome Association cannot produce the documents within the ten (10) business days along with either: (i) another date within an additional fifteen (15) business days on which the records may either be inspected or by which the copies will be sent to the Owner; or (ii) a notice that after a diligent search, the requested records are missing and cannot be located.

4. Records Retention. The Townhome Association shall keep the following records for at least the time periods stated below: 1 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy 4827-2004 -2681v.2 57160-13 5. a. PERMANENT: The Townhome Certificate of Formation, the Townhome Bylaws and the Development Area Declaration, any and all other governing documents, guidelines, rules, regulations and policies and all amendments thereto Recorded in the property records to be effective against any Owner and/or member of the Townhome Association.

b. FOUR (4) YEARS: Contracts with a term of more than one (1) year between the Townhome Association and a third party. The four (4) year retention term begins upon expiration of the contract term.

c. FIVE (5) YEARS: Account records of each Owner. Account records include debit and credit entries associated with amounts due and payable by the Owner to the Townhome Association, and written or electronic records related to the Owner and produced by the Townhome Association in the ordinary course of business.

d. SEVEN (7) YEARS: Minutes of all meetings of the Townhome Board and the Owners.

e. SEVEN (7) YEARS: Financial books and records produced in the ordinary course of business, tax returns and audits of the Townhome Association.

f. GENERAL RETENTION INSTRUCTIONS: "Permanent" means records which

) YEARS: Financial books and records produced in the ordinary course of business, tax returns and audits of the Townhome Association.

f. GENERAL RETENTION INSTRUCTIONS: "Permanent" means records which are not to be destroyed. Except for contracts with a term of one (1) year or more (See item 4.b. above), a retention period starts on the last day of the year in which the record is created and ends on the last day of the year of the retention period.

For example, if a record is created on June 14, 2020, and the retention period is five (5) years, the retention period begins on December 31, 2020 and ends on December 31, 2025. If the retention period for a record has elapsed and the record will be destroyed, the record should be shredded or otherwise safely and completely destroyed. Electronic files should be destroyed to ensure that data cannot be reconstructed from the storage mechanism on which the record resides.

Coufide11tial Records. As determined in the discretion of the Townhome Board, certain Townhome Association records may be kept confidential such as personnel files, Owner account or other personal information (except addresses) unless the Owner requesting the records provides a court order or written authorization from the person whose records are sought.

6. Attonrey Files. Attorney's files and records relating to the Townhome Association (excluding invoices requested by an Owner pursuant to Texas Property Code Section 209.00S(d)), are not records of the Townhome Association and are not: (a) subject to inspection by the Owner; or (b) subject to production in a legal proceeding. If a document in an attorney's files and records relating to the Townhome Association would be responsive to a legally authorized request to inspect or copy

ubject to production in a legal proceeding. If a document in an attorney's files and records relating to the Townhome Association would be responsive to a legally authorized request to inspect or copy Townhome Association documents, the document shall be produced by using the copy from the attorney' s files and records if the Townhome Association has not maintained a separate copy of the document. The Townhome Association is not required under any circumstance to produce a document 4827-2004-268lv.2 57160-13 2 LEXING TON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy for inspection or copying that constitutes attorney work product or that is privileged as an attorney-client communication.

7. Presence o(Towuhome Board Member or Mm1ager ; No Removal. At the discretion of the Townhome Board or the Townhome Association's Manager, certain records may only be inspected in the presence of a Townhome Board member or employee of the Townhorne Association's Manager. No original records may be removed from the office without the express written consent of the Townhome Board.

LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy TEXAS ADMINISTRATIVE CODE TITLE 1, PART 3, CHAPTER 70 RULE §70.3 -CHARGES FOR PROVIDING COPIES OF PUBLIC INFORMATION (a) The charges in this section to recover costs associated with providing copies of public information are based on estimated average costs to governmental bodies across the state. When actual costs are 25% higher than those used in these rules, governmental bodies other than agencies of the state, may request an exemption in accordance with §70.4 of this title (relating to Requesting an Exemption).

(b) Copy charge.

those used in these rules, governmental bodies other than agencies of the state, may request an exemption in accordance with §70.4 of this title (relating to Requesting an Exemption).

(b) Copy charge.

(1) Standard paper copy. The charge for standard paper copies reproduced by means of an office machine copier or a computer printer is $.10 per page or part of a page. Each side that has recorded information is considered a page.

(2) Nonstandard copy. The charges in this subsection are to cover the materials onto which information is copied and do not reflect any additional charges, including labor, that may be associated with a particular request. The charges for nonstandard copies are: (A) Diskette--$1.00; (B) Magnetic tape--actual cost; (C) Data cartridge--actual cost; (D) Tape cartridge--actual cost; (E) Rewritable CD (CD-RW)--$1.00; (F) Non-rewritable CD (CD-R)--$1.00; (G) Digital video disc (DVD)--$3.00; (H) JAZ drive--actual cost; (I) Other electronic media--actual cost; (J) VHS video cassette--$2.50; (K) Audio cassette--$1.00; (L) Oversize paper copy (e.g.: 11 inches by 17 inches, greenbar, bluebar, not including maps and photographs using specialty paper--See also §70.9 of this title)--$.50; (M) Specialty paper (e.g.: Mylar, blueprint, blueline, map, photographic--actual cost.

(c) Labor charge for programming. If a particular request requires the services of a programmer in order to execute an existing program or to create a new program so that requested information may be accessed and copied, the governmental body may charge for the programmer's time.

(1) The hourly charge for a programmer is $28.50 an hour. Only programming services shall be charged at this hourly rate.

(2) Governmental bodies that do not have in-house programming capabilities shall comply with

charge for a programmer is $28.50 an hour. Only programming services shall be charged at this hourly rate.

(2) Governmental bodies that do not have in-house programming capabilities shall comply with requests in accordance with §552.231 of the Texas Government Code.

(3) If the charge for providing a copy of public information includes costs of labor, a governmental body shall comply with the requirements of §552.261(b) of the Texas Government Code.

4 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy (d) Labor charge for locating, compiling, manipulating data, and reproducing public information.

(1) The charge for labor costs incurred in processing a request for public information is $15 an hour. The labor charge includes the actual time to locate, compile, manipulate data, and reproduce the requested information.

(2) A labor charge shall not be billed in connection with complying with requests that are for 50 or fewer pages of paper records, unless the documents to be copied are located in: {A) Two or more separate buildings that are not physically connected with each other; or (B) A remote storage facility.

{3) A labor charge shall not be recovered for any time spent by an attorney, legal assistant, or any other person who reviews the requested information: (A) To determine whether the governmental body will raise any exceptions to disclosure of the requested information under the Texas Government Code, Subchapter C, Chapter 552; or {B) To research or prepare a request for a ruling by the attorney general's office pursuant to §552.301 of the Texas Government Code.

(4) When confidential information pursuant to a mandatory exception of the Act is mixed with

a request for a ruling by the attorney general's office pursuant to §552.301 of the Texas Government Code.

(4) When confidential information pursuant to a mandatory exception of the Act is mixed with public information in the same page, a labor charge may be recovered for time spent to redact, blackout, or otherwise obscure confidential information in order to release the public information. A labor charge shall not be made for redacting confidential information for requests of 50 or fewer pages, unless the (5) If the charge for providing a copy of public information includes costs of labor, a governmental body shall comply with the requirements of Texas Government Code, Chapter 552, §552.261(b).

(6) For purposes of paragraph (2)(A) of this subsection, two buildings connected by a covered or open sidewalk, an elevated or underground passageway, or a similar facility, are not considered to be separate buildings.

(e) Overhead charge.

(1) Whenever any labor charge is applicable to a request, a governmental body may include in the charges direct and indirect costs, in addition to the specific labor charge. This overhead charge would cover such costs as depreciation of capital assets, rent, maintenance and repair, utilities, and administrative overhead. If a governmental body chooses to recover such costs, a charge shall be made in accordance with the methodology described in paragraph (3) of this subsection. Although an exact calculation of costs will vary, the use of a standard charge will avoid complication in calculating such costs and will provide uniformity for charges made statewide .

is subsection. Although an exact calculation of costs will vary, the use of a standard charge will avoid complication in calculating such costs and will provide uniformity for charges made statewide .

(2) An overhead charge shall not be made for requests for copies of 50 or fewer pages of standard paper records unless the request also qualifies for a labor charge pursuant to Texas Government Code, §552.261(a)(1) or {2).

(3) The overhead charge shall be computed at 20% of the charge made to cover any labor costs associated with a particular request. Example: if one hour of labor is used for a particular request, the formula would be as follows: Labor charge for locating, compiling, and reproducing , $15.00 x .20 = $3.00; or Programming labor charge, $28.50 x .20 = $5.70. If a request requires one hour of labor charge for LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy locating, compiling, and reproducing information ($15.00 per hour); and one hour of programming labor (f) Microfiche and microfilm charge.

(1) If a governmental body already has information that exists on microfiche or microfilm and has copies available for sale or distribution, the charge for a copy must not exceed the cost of its reproduction. If no copies of the requested microfiche or microfilm are available and the information on the microfiche or microfilm can be released in its entirety, the governmental body should make a copy of the microfiche or microfilm. The charge for a copy shall not exceed the cost of its reproduction. The Texas State Library and Archives Commission has the capacity to reproduce microfiche and microfilm for

microfiche or microfilm. The charge for a copy shall not exceed the cost of its reproduction. The Texas State Library and Archives Commission has the capacity to reproduce microfiche and microfilm for governmental bodies. Governmental bodies that do not have in-house capability to reproduce microfiche or microfilm are encouraged to contact the Texas State Library before having the reproduction made commercially.

(2) If only a master copy of information in microfilm is maintained, the charge is $.10 per page for standard size paper copies, plus any applicable labor and overhead charge for more than 50 copies.

(g) Remote document retrieval charge.

(1) Due to limited on-site capacity of storage documents, it is frequently necessary to store information that is not in current use in remote storage locations. Every effort should be made by governmental bodies to store current records on-site. State agencies are encouraged to store inactive or non-current records with the Texas State Library and Archives Commission. To the extent that the retrieval of documents results in a charge to comply with a request, it is permissible to recover costs of such services for requests that qualify for labor charges under current law.

(2) If a governmental body has a contract with a commercial records storage company, whereby the private company charges a fee to locate, retrieve, deliver, and return to storage the needed record(s), no additional labor charge shall be factored in for time spent locating documents at the storage location by the private company's personnel. If after delivery to the governmental body, the boxes must still be searched for records that are responsive to the request, a labor charge is allowed according to subsection (d)(l) of this section.

. If after delivery to the governmental body, the boxes must still be searched for records that are responsive to the request, a labor charge is allowed according to subsection (d)(l) of this section.

(h) Computer resource charge.

(1) The computer resource charge is a utilization charge for computers based on the amortized cost of acquisition, lease, operation, and maintenance of computer resources, which might include, but is not limited to, some or all of the following: central processing units (CPUs), servers, disk drives, local area networks (LANs), printers, tape drives, other peripheral devices, communications devices, software, and system utilities.

(2) These computer resource charges are not intended to substitute for cost recovery methodologies or charges made for purposes other than responding to public information requests.

(3) The charges in this subsection are averages based on a survey of governmental bodies with a broad range of computer capabilities. Each governmental body using this cost recovery charge shall determine which category(ies) of computer system(s) used to fulfill the public information request most closely fits its existing system(s), and set its charge accordingly. Type of System--Rate: mainframe--$10 per CPU minute; Midsize--$1.50 per CPU minute; Client/Server--$2.20 per clock hour; PC or LAN--$1.00 per clock hour.

LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy (4) The charge made to recover the computer utilization cost is the actual time the computer takes to execute a particular program limes the applicable rate. The CPU charge is not meant to apply to programming or printing time; rather it is solely to recover costs associated with the actual time required

cute a particular program limes the applicable rate. The CPU charge is not meant to apply to programming or printing time; rather it is solely to recover costs associated with the actual time required by the computer to execute a program. This time, called CPU time, can be read directly from the CPU clock, and most frequently will be a matter of seconds. If programming is required to comply with a particular request, the appropriate charge that may be recovered for programming time is set forth in subsection (d) of this section. No charge should be made for computer print-out time. Example: If a mainframe computer is used, and the processing time is 20 seconds, the charges would be as follows: $10 (5) A governmental body that does not have in-house computer capabilities shall comply with requests in accordance with the §552.231 of the Texas Government Code.

(i) Miscellaneous supplies. The actual cost of miscellaneous supplies, such as labels, boxes, and other supplies used to produce the requested information, may be added to the total charge for public information.

(j) Postal and shipping charges. Governmental bodies may add any related postal or shipping expenses which are necessary to transmit the reproduced information to the requesting party.

(k) Sales tax. Pursuant to Office of the Comptroller of Public Accounts' rules sales tax shall not be added on charges for public information (34 TAC, Part 1, Chapter 3, Subchapter 0, §3.341 and §3.342).

(l) Miscellaneous charges: A governmental body that accepts payment by credit card for copies of public information and that is charged a "transaction fee" by the credit card company may recover that fee.

(m) These charges are subject to periodic reevaluation and update.

credit card for copies of public information and that is charged a "transaction fee" by the credit card company may recover that fee.

(m) These charges are subject to periodic reevaluation and update.

Source Note: The provisions of this §70.3 adopted to be effective September 18, 1996, 21 TexReg 8587; amended to be effective February 20, 1997, 22 TexReg 1625; amended to be effective December 3, 1997, 22 TexReg 11651; amended to be effective December 21, 1999, 24 TexReg 11255; amended to be effective January 16, 2003, 28 TexReg 439; amended to be effective February 11, 2004, 29 TexReg 1189; transferred effective September 1, 2005, as published in the Texas Register September 29, 2006, 31 TexReg 8251; amended to be effective February 22, 2007, 32 TexReg 614.

LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 5 -Records Policy ATIACHMENT6 LEXINGTON ESTATES TOWNHOME ASSOCIATION, INC.

STATUTORY NOTICE OF POSTING AND RECORDATION OF TOWNHOME ASSOCIATION GOVERNING DOCUMENTS Terms used but not defined in this policy will have the meaning subscribed to such terms in that certain Lexington Estates Development Area Declaration [Tow1lhomes] recorded in the Official Public Records of Collin County, Texas, as the same may be amended from time to time (the "Development Area Declaration").

1. Dedicato ry lnstmmeuts. As set forth in Texas Property Code Section 202.001, "dedicatory instrument" means each document governing the establishment, maintenance or operation of a residential subdivision, planned unit development, condominium or townhouse regime, or any similar planned development. The term includes the Development Area Declaration, or any similar

peration of a residential subdivision, planned unit development, condominium or townhouse regime, or any similar planned development. The term includes the Development Area Declaration, or any similar instrument subjecting real property to: (a) restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association; (b) properly adopted rules and regulations of the property owners' association; or (c) all lawful amendments to the covenants, bylaws, instruments, rules, or regulations. The term "dedicatory instrument" is referred to in this notice and the Development Area Declaration as the "Townhome Documents."

2. Recordatio1l of All Tow1lhome Docume1lts. The Townhome Association shall file all of the Townhome Documents in the real property records of each county in which the property to which the Townhome Documents relate is located. Any dedicatory instrument comprising one of the Townhome Documents of the Townhome Association has no effect until the instrument is filed in accordance with this provision, as set forth in Texas Property Code Section 202.006.

3. 01llille Posti11g of Townho,ne Documents. The Townhome Association shall make all of the Recorded Townhome Documents relating to the Townhome Association or Development Area available on a website if the Townhome Association, or a management company on behalf of the Townhome Association, maintains a publicly accessible website.

LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 6 -Statutoi:y Notice ATTACHMENT 7 LEXINGTON ESTA TES TOWNHOME ASSOCIATION, INC.

EMAIL REGISTRATION POLICY Terms used but not defined in this policy will have the meaning subscribed to such terms in that

-Statutoi:y Notice ATTACHMENT 7 LEXINGTON ESTA TES TOWNHOME ASSOCIATION, INC.

EMAIL REGISTRATION POLICY Terms used but not defined in this policy will have the meaning subscribed to such terms in that certain Lexington Estates Development Area Declaration [Tow11homes] recorded in the Official Public Records of Collin County, Texas, as the same may be amended from time to time.

1. Purpose. The purpose of this Email Registration Policy is to facilitate proper notice of annual and special meetings of members of the Townhome Association pursuant to Section 209.00Sl(e) of the Texas Property Code.

2. Email Registratio11. Should the owner wish to receive any and all email notifications of annual and special meetings of members of the Townhome Association, it is the owner's sole responsibility to register his/her email address with the Townhome Association and to continue to keep the registered email address updated and current with the Townhome Association. In order to register an email address, the owner must provide their name, address, phone number and email address through the method provided on the Townhome Association's website, if any, and/or to the official contact information provided by the Townhome Association for the community manager.

3. Failure to Register. An owner may not receive email notification or communication of annual or special meetings of members of the Townhome Association should the owner fail to register his/her email address with the Townhome Association and/or properly and timely maintain an accurate email address with the Townhome Association. Correspondence to the Townhome Association and/or Townhome Association manager from an email address or by any method other than the method

ain an accurate email address with the Townhome Association. Correspondence to the Townhome Association and/or Townhome Association manager from an email address or by any method other than the method described in Paragraph No. 2 above will not be considered sufficient to register such email address with the Townhome Association.

4. Ame11dme11t. The Townhome Association may, from time to time, modify, amend, or supplement this Policy or any other rules regarding email registration.

4827-2004-268lv.2 57160-13 1 LEXINGTON ESTATES TOWNHOME COMMUNITY MANUAL Attachment 7 -Email Registration Policy