ARTICLE XI
ACCOUNTINGS

11.1. The Association shall maintain books of account of all its receipts
and expenditures. Each Owner shall be entitled at reasonable time(s) to inspect the books
of the Association, and to have such books examined at said Owner's expense by an
attorney or an accountant representing such Owner, and may make excerpts or copies of
such books or portions thereof, and each such Owner, at his own expense, shall have the
right to have such books independently audited by an accountant.

11.2. The Board shall cause a pro forma operating statement (budget) to
be prepared for each fiscal year which shall be distributed not less than sixty (60) days
before the beginning of the fiscal year.

11.3. The Board shall also cause to be prepared a balance sheet, as of the
accounting date, which is the last day of the month closest in time to six (6) months from
the date of the closing of the first sale of a Lot in the Project, and an operating
statement for the period from the date of the first closing to said accounting date, which
shall be distributed within sixty (60) days after said accounting date. The operating
statement shall include a schedule of assessments received in receivable, identified by the
number of the Lot and the name of the record Owner assessed.

11.4. The Board shall cause to be prepared an annual report consisting of
the following which shall be distributed within 120 days after the close of the fiscal year:

11.4.1. A balance sheet as of the end of the fiscal year.

11.4.2. An operating (income) statement for the fiscal year.

11.4.3. A statement of changes in financial position for the fiscal
year.

11.4.4. A description of any transaction or series of transactions
between the Association and an Officer or Director involving more than fifty thousand
dollars ($50,000.00) wherein such Officer or Director has a direct or indirect material
financial interest. The description of the transaction shall include such person's
relationship to the Association, the nature of the person's interest in the transaction, and,
where practicable, the amount of such person's interest.

11.5. Ordinarily the annual report referred to in Section 11.4 above shall
be prepared by an independent accountant for any fiscal year in which the gross income to
the Association exceeds $75,000.

11.6. If the report referred to in Section 11.4 above is not prepared by an
independent accountant, it shall be accompanied by the certificate of an authorized
officer of the Association that the statements were prepared without audit from the
books and records of the Association.