AMENDMENT A

(Revised February 1, 2010)

WHEREAS under Article III, Section 3.02, item (h) of the By-Laws of the Rolling Knolls Homeowners Association (Association), the Board of Directors (Board) of the Association have the authority to impose reasonable fees for certain administrative functions provided by the Board and reasonable fines and penalties for violations of the Declaration, By-Laws and Rules and Regulations of the Association, and,

WHEREAS said fines and penalties for general violations of the Regulations of the Association have not been increased since December 1991, and,

WHEREAS according to the United States Bureau of Labor Statistics, the 2009 rate of inflation since 1991 is 58.36%,

NOW THEREFORE the language in the sections of the Rules and Regulations relating to fines and penalties specified therein shall be replaced with the following set forth in Schedule A of this Amendment, effective February 1, 2010.

All sections and articles of the By-Laws, Covenants and Restrictions and Rules and Regulations of the Rolling Knolls Homeowners Association not addressed in this Amendment remain unchanged and shall be enforceable as enacted.

Schedule A - Modifications to Rules and Regulations

The language in the specified section(s) of the Rules and Regulations of the Rolling Knolls Homeowners Association, originally enacted on December 17, 1991, shall be changed heretofore as follows.

II. Policies and Procedures Regarding Enforcement

E. If a lot Owner is found to have violated personally or is otherwise liable for a violation of any of the provisions of the Declaration, By-Laws or Rules and Regulations of the Association, the following shall occur:

3. Where a fine is imposed, it shall be in the amount of One Hundred and Fifty Dollars ($150.00) for single incidents of violation or the sum of Forty Dollars ($40.00) per day for a violation of a continuing nature.  A FINE FOR A VIOLATION OF A CONTINUING NATURE SHALL BE DEEMED A SINGLE INCIDENT WITH A FINE IMPOSED EACH DAY THE VIOLATION HAS NOT BEEN ELIMINATED AND THE ASSOCIATION HAS RECEIVED NOTICE OF IT.

5. Paragraph 2. In addition to the foregoing assessment, and in order to encourage Lot Owners to correct violations at their own time and expense, and in order to compensate the Association for the administrative expenses involved in obtaining and supervising any such correction, the Association will assess any Lot Owner, who forces the Association to correct a violation, with an additional administrative charge of One Hundred and Fifty Dollars ($150.00) or Twenty Percent (20%) of the cost of labor or materials, whichever is greater.

IV. Rules Regarding the Use, Administration and Appearance of the Property

C. Assessment and Collections

2. Any payment of less than the full amount of all assessment and other charges which are due in any given year or any payment which is made late shall cause the Lot Owner to be subject to a Late Charge of Fifteen Dollars ($15.00) per month, which shall be added to and deemed a part of the Lot Owner’s Common Expenses.

VII. Rules Regarding closing and Transfer of Ownership

B.  The Association may charge a fee in the amount of twenty-five cents ($0.25) per page of copy for the cost of this service, or such higher amount as may be permitted by law.

C.  The Association shall provide any Lot Owner, upon ten (10) days notice to the Board or its authorized agents, a statement of his account setting forth the amount of any unpaid assessments and other charges due and owing from such owner.  The Association may charge a reasonable fee for this service, which is presently set at Twenty-Five Dollars ($25.00) per request.  This amount may be charged from time to time by the Board.

In the event a request is made which requires this information to be provided in less than the ten (10) day period, the Association will charge the Lot Owner an additional fee.  The additional fee shall be calculated by taking the difference between ten (10) days and the number of days remaining until the information must be provided and multiplying that figure by Eight Dollars ($8.00).