STANDARD OPERATING PROCEDURES
H.O.V.E. ROAD MAINTENANCE CORPORATION

2.   THE PLACE AND TIME OF THE BOARD MEETINGS WILL BE THE FIRST WEDNESDAY OF EACH MONTH AT 4:00 P.M. AT THE ROAD CORP. OFFICE, UNLESS OTHERWISE NOTED.

3.   THE BOARD OF DIRECTORS WILL BE THE GOVERNING BODY OF THE CORPORATION. THE PRESIDENT SHALL BE THE CHIEF EXECUTIVE OFFICER BUT IS SUBJECT TO THE CONTROL OF THE BOARD. THE PRESIDENT SHALL EXERCISE GENERAL SUPERVISION AND DIRECTION OVER THE MANAGEMENT AND CONDUCT OF AFFAIRS AND BUSINESS OF THE CORPORATION. ANY PROBLEMS OR QUESTIONS ARISING WITH THE CREW OR MANAGEMENT WILL BE DIRECTED TO THE PRESIDENT FOR FUTHER INQUIRY.

4.   BOARD MEMBERS ARE ELECTED FOR A THREE-YEAR TERM. A DIRECTOR SHALL BE REMOVED FOR ABSENCE OF MORE THAN THREE (3) CONSECUTIVE REGULAR BOARD MEETINGS UNLESS THE BOARD WAIVES THE ABSENCE.

5.    STANDING COMMITTEES SHALL CONSIST OF THE FOLLOWING:

            ANNUAL REPORT/NEWSLETTER

            BY-LAWS

             ROADS

             SAFETY

             BUDGET/FINANCE

             LEGAL

             PLANNING

             GOVERNMENT AFFAIRS

6.   NEWLY ELECTED BOARD MEMBERS SHOULD TAKE THE TIME TO FAMILIARIZE THEMSELVES WITH THE PRIOR YEAR'S MINUTES, LOCATED IN THE OFFICE.

7.   WHEN THERE IS NOT A QUORUM IN ATTENDANCE AT A REGULAR BOARD MEETING, MEMBERS PRESENT SHOULD HAVE THE OPPORTUNITY TO ASK THAT AN "INFORMATIONAL" MEETING BE HELD, BEING AWARE THAT NO VOTING MAY OCCUR. THIS WOULD BE A COURTESY GESTURE TO THOSE WHO HAVE TAKEN THE TIME TO ATTEND.

8.   CONTACT WITH CORPORATION ATTORNEY WILL BE WITH THE APPROVAL OF THE BOARD ONLY.

9.      THE PROCEDURES FOR CHANGING THE ARTICLES OF INCORPORATION AND BYLAWS ARE:

A.   Legal Committee submits brief description of proposed change to Corporation Lawyer requesting his opinion on its legality and suggested approaches. (This step is not required for simple or administrative changes.)

B.   By-Laws Committee drafts up proposed change.

C.   Proposed change is sent to Corporation Lawyer for approval.

D.   Proposed change is submitted to Board of Directors for approval.

E.   Proposed change is entered into Annual Report/Newsletter to be voted on by the membership.

10.    THE PROCEDURES AND SCHEDULE FOR DEVELOPING THE BUDGET AND ROAD MAINTENANCE PLAN AND THE LONG RANGE PLAN ARE:

A.   Beginning in January, the Budget/Finance Committee will extract appropriate information from the long-range plan, update the information, finalize budget figures, and prepare the Budget and Road Maintenance Plan.

B.      A draft of the Budget and Road Maintenance Plan will be submitted to the Board of Directors by the March meeting.

C.   The Board of Directors will approve the submitted draft with appropriate changes by the May meeting, after which it will be entered into the Annual Report/Newsletter to be voted on by the membership.

D.   Beginning in July, the Planning Committee will use the Budget and Road Maintenance Plan as the basis for preparing the Long Range Plan.

E.   A draft of the Long Range Plan will be submitted to the Board of Directors by the September meeting.

F.     The Board of Directors will approve the submitted draft with appropriate changes by the November meeting, after which it will be filed in the RMC office available for review.

11.    THE PROCEDURES FOR DETERMINING YEAR-END CARRY-OVER FUNDS ARE:

A.   The Treasurer shall determine the amount of unspent funds at the end of the year.

B.   The Treasurer shall obtain from the manager of the Trust Fund the profit or income (defined as the year-end fund balance minus the starting balance) for the year, and shall notify the Trust Fund manager of the percentage (currently up to 40%) of the profit or income that we want withdrawn from the fund. This percentage can only be changed with Board approval. If the profit or income is less that or equal to zero, nothing will be withdrawn.

C.      At the January Board meeting, the Treasurer will notify the Board of the available funds (sum of unspent funds and funds withdrawn from the Trust Fund). The amount required for the Operations Fund is currently $100,000, but this can be changed with Board approval and will be subtracted from available funds. The amount required for the Capital Reserve Replacement Fund (CRRF) will then be subtracted. The CRRF is not a slush fund: every item in it must have been justified as needed and have Board approval, and must include a good cost estimate.

D.      Any available fund left over after providing for the two carry-over funds will be distributed as rebates to lot owners who pay up their accounts by March 31. The amount of the rebate shall be determined by dividing the remaining available funds by the latest figure for the number of lot owners and rounding down to the nearest dollar.

12 .IN ORDER TO CLARIFY AND BECAUSE OF POSSIBLE PAST INCONSISTENCIES IN THE APPLICATIONS OF PROCEDURES DEALING WITH DELINQUENT ACCOUNTS THE FOLLOWING STANDARD OPERATING PROCEDURE (SOP) OF THE H.O.V.E. ROAD CORPORATION WILL BE USED IN DEALING WITH THESE MATTERS.

A.   Each amount in question will be individually reviewed by the H.O.V.E. Road Corporation Finance Committee.

B.      Payment or proof of payment of delinquent items will be required within 30 days of notice.

C.      If payment or proof of payment is not received in 30 days then a letter of intent to lien will be issued to the delinquent  member.

D.      If after 90 days of notice of intent to lien, payment or proof of payment is not received then a lien(s) will be imposed by H.O.V.E. Road Corporation on the properties in question.