WHEREAS, the Association, a not-for-profit corporation established pursuant to the laws of the State of Florida conducted a duly called meeting on March 8, 2010, of the membership, at which a quorum was present; and

WHEREAS, the Association is collecting funds intended to provide for reserve accounts for capital expenditures and deferred maintenance; and

WHEREAS, the reserve accounts were not initially approved by the Developer; and

WHEREAS, the membership so desire to elect to provide for reserve accounts in accordance with F.S. 720.303 (6) (d); and

WHEREAS, not less than a majority of the total voting interests of the Association voted in the affirmative.

NOW, THEREFORE, it is hereby resolved as follows:

1. Reserve accounts shall be provided for in all subsequent annual budgets.

2. The reserve categories shall include the following Common Areas: guard house, boundary wall, security system, roads, Lake A, all other lakes, irrigation, landscaping, electric, and storm drain system. Common Area categories may be added or deleted by an affirmative vote by no less than a majority of the total voting interests.

3. The amount to be reserved in any account shall be computed by means of a formula that is based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense of each reserve item. The Board may adjust replacement reserve assessments annually to take into account any changes in estimates of cost or useful life of a reserve item.

4. Monies will be collected annually for the reserve items per the reserve funding formulas unless otherwise determined by an affirmative vote by no less than a majority of the total voting interests.

5. Reserve funds and any accruing interest shall be used for the specific designated category or as provided for in F.S. 720.