ANNUAL MEETING OF THE MEMBERSHIP

NOVEMBER 7, 2007

The Annual Meeting of the Four Winds Beach Resort Condominium Association, Inc. was held November 7, 2007, at 10:00 am at the Four Winds Beach Resort. Present were President Joe Walsh, Vice President Pat Webb, Treasurer John Tanner, Secretary Paul Erickson, and Directors Bill Cunningham and Shirley Schilla. Also present were General Manager Nancy Yoder, Assistant Manager Larry Claypool and Four Winds Real Estate Broker Kathleen Rhodes. Eighteen owners were also present.

Notice of the 2007 Annual Meeting was mailed to all members of the Four Winds Beach Resort Condominium Association, Inc. thirty days in advance. Notice was posted on the property more than fourteen days in advance of the meeting.

President Walsh called the meeting to order, and Mr. Claypool reported that as of the day before, 11/6/07, the Association had received 1102 proxies, almost 50% of the 2295 total unit weeks, and that only 15% was required for a quorum. The Board of Directors introduced themselves.

Copies of the minutes of the 2006 Annual Meeting had been distributed to the membership as they entered the meeting. A motion was made by Secretary Erickson, seconded by Secretary Schilla, and carried unanimously to approve the minutes as written.

BOARD OF DIRECTORS: There were four owner positions available on the Board of Directors for a two-year term each. There were no nominations from the floor, and nominations were closed. Owners were given the opportunity to cast their votes for the Board of Directors if they hadn’t already turned in their ballots. Mr. Claypool asked, “Mr. Secretary, do you cast the ballots for the election according to the instructions on the proxies appointed to you?” to which Secretary Erickson said, “I do.” Mr. Claypool took a moment to thank the owners who had helped him certify and tabulate the votes over the past weeks: Velma Martone, Richard Morris, Laurie and Anthony Martincic, Jane Klotz, John Houseman and Patricia Ayers.

UNFINISHED BUSINESS: Nancy Yoder presented her Manager’s Report, which included air conditioning repair and replacement (both condensers and air handlers) for all the units that were needed; replacement of all three Four Winds administrative computers; upgrading of the grounds; insurance coverage for the Resort; further Jacuzzi replacement and the scheduling of the final two tubs; increased usage of fluorescent fixtures and bulbs, including upgrading all fixtures in the lobby and administrative rooms to more efficient equipment; new geothermal pool and spa heaters, resulting in substantial savings; early payment of, and savings in, property taxes; roof repairs and eventual replacement of the main building roof; telephone system replacement and wireless internet service for the units; and vacuums in the units. Director Schilla moved that the Manager’s Report be accepted as submitted, and Secretary Erickson seconded the motion, which then carried unanimously.

FINANCIAL BUSINESS: Treasurer Tanner presented the proposed Budget for 2008. He pointed out two particular issues of interest; the work Nancy had done during the year to keep operating expenses under budget; and, the help Kathleen had been in securing lower credit card charges. He pointed out that the proposed Budget was a tight one but met the needs of the Resort, and kept the fees from going up. He and Nancy answered questions from the audience pertaining to unexpected increases in expenses and to collection expenses. Mr. Bardin pointed out that there was an error on the “Total Reserves Collected” line on the first page of the Budget given to the owners. Treasurer Tanner explained how the Board had arrived at the funding amount for Building Restructure Reserves, and what he planned to do in that regard in the future. The amount of work that President Walsh and Nancy went through to secure the lowest possible insurance rates was explained and emphasized.

NEW BUSINESS: There was no new business brought before the Ownership.

OUTCOME OF ELECTION: President Walsh thanked Director Schilla for her nine years of service and presented her with a bouquet of flowers. Secretary Erickson announced that Joe Walsh, Pat Webb, Chuck Govin and Del Gorecki had won the election for the four positions on the Board of Directors. President Walsh asked if there were any questions or comments on the voting, but there were none.

ADJOURNMENT: Director Schilla moved that the meeting be adjourned. Secretary Erickson seconded the motion, which then carried unanimously.

Respectfully submitted,

Larry Claypool

For Paul Erickson – 11/8/07

ADDENDUM

The full number of proxies received for the meeting was 1187. The candidates received the following numbers of votes:

Ed Bond 199

Del Gorecki 704

Chuck Govin 803

Barbara Johnson 593

Sara Ruda 236

Joe Walsh 1004

Jay Walters 289

Pat Webb 891