CabanaClubCondominiumAssociation AnnualMeetingOctober17,2009 ShorelineHistoricalMuseum OFFICIALMINUTES CalltoOrder At1:00p.m.President,WayneScottcalledthemeetingtoorderandwelcomedallinattendance.

e. BoardMembersPresent: DeeBarton NancyBirdwell RobinBarker BobDooley JimFoti LindaRamos WayneScott KarenWilliams RegistrationandQuorum Itwasrequestedthateveryoneinattendancesigninanditwasannouncedthatwehadmetaquorumwitheither 20%oftheownerspresentorbyproxyreceived. ReviewandApprovalof2008AnnualMeetingMinutes Don Smith motioned for approval of the 2008 Annual Meeting Minutes as presented. Doan Blair seconded the motion. A vote was taken and motion was approved. It was noted that in the packets that were mailed to the ownersthebudgetwasincorrectlydated2009andshouldhavebeen2010. Doan Blair made a motion to correct the date from 2009 to 2010 on the budget information presented. ChristopherSmithsecondedthemotion.Avotewastakenandunanimouslypassed. ManagersReport Manager Gary Bayless gave an overview of repairs done and improvements made during the last year. Gary also informed the membership that our Interval International ratings have increased (8090% positive comments) and thatwehaveexperiencedmoreexchangesthanowneroccupancyduringthelastyear. A discussion took place regarding storing the barbeques in the storage units outside each unit during the winter and the fact that items in the cubbies need to be removed to accommodate this. Alice Blair commented on the greatjobthatGaryisdoingasourmanager. TreasurersReportNancyBirdwell Atreasurersreportwasprovidedasof101709thatincludedthefollowing: BankBalancesasof101509 OperatingAccount $4,995.35 AccountsReceivableasof101509 ManagerAccount $375.00 AccountReceivable $64,287.88 ReserveAccount $5,000.00 DeedWriteOff ($21,956.00) PettyCash $150.00 Balance $42,331.88 USBankCC $1,063.54 PastDue ($20,175.15)*** Collectable $22,156.73 AssessmentAcct $81,514.36 Total $93,098.25 ***=11ownerspastdueincludes4fulltimeownerunits. Liens,etc.willbefiledfor$11,910.64. AssessmentReport Theassessmentbalanceasof101509: AssessmentIncome $147,506.98 Adj.fordiscounts,etc. ($10,461.36) ExpensesPaid ($55,531.26) BALANCE $81,514.36 Expensestobepaid $16,700.00(RoofBldg#1&blinds) Balanceoffundsavailable $64,814.36

101709AnnualMeetingMinutes PageTwo ExpensesPaidasof101509($55,531.26) TopsideRoofing $25,824.80(bldgs2&3) PoolRepair $24,227.44 ParkingLot $4,741.45 Blinds $737.57 Total $55,531.26(seeabove) Assessmentreceivableasof101509 $79,335.76 Deededwriteoff (21,596.59) Pastdue (28,881.86)** Collectable $28,857.31 **=13ownerspastdue(includes4fulltimeownerunits) Nancy explained the budget and stated that Cabana Club Association has had 66 weeks deeded back as of this date. A discussion took place regarding possible interest income for Cabana. It was shared that funds have not been invested due to the fact that they are in and out and we have not had the opportunity for investment. It was asked how many members were included in the deeded writeoff amount noted above. Nancy replied that amountrepresented19owners. Nancy explained that within the 2010 budget the board is suggesting a 5% dues increase. She further explained thatsherevisedthe2009budgettoreflectactualexpendituresallowingCabanatoremainsolvent. DonCogdillaskedforclarificationonwhatthedueamountswouldgotowiththeincreaseinbudget. Nancysharedthefollowing: Onebedroom 2010Weekly=$226.92 $20.00CleaningFee Total=$246.92 Onebedroom/loft 2010Weekly=$334.13 $28.00CleaningFee Total=$362.13 Twobedroom 2010Weekly=$249.48 $24.00CleaningFee Total=$273.48 Twobedroom/loft 2010Weekly=$379.27 $32.00CleaningFee Total=$411.27 WholeOwnership 104,105,110,204 $389.05Monthly 206,210 $439.45Monthly A discussion took place regarding the monthly fee to be assessed to full time owners and to the multiple week owners. Discussion also took place regarding building up the reserve account. Further questions were raised regardingtheproposedbudget. One owner stated they were pleasantly surprised by the 5% increase, with the situation that Cabana is in. It was further asked if the deeded back units did not sell would this 5% increase hold. Nancy replied yes the only increaseproposedisthe5%dueincrease. Anotherowneraskediftherewasgoingtobeamoratoriumontheassessmentimprovements. Nancy replied yes that until we get the necessary funds further improvements would be put on hold and only necessarythingswouldbedonetomaintaintheappearanceandintegrityofthecomplexwhichwillhelpwiththe sellingofunits. Anowneraskedon thefulltimeownersthatareinarrearscansomething be donetokeepthemfromusingtheir units.Nancyrepliedlegallynothingcanbedonetokeepthemoutoftheirunits.

101709AnnualMeetingMinutes PageThree Anotherowneraskediflegaladvicehadbeenobtainedonthesellingofthecomplex. Wayne Scott replied that the board has been in contact with our lawyer and that we have dropped from 200 owners to 174 and that selling the complex would almost be an impossible thing to do. He also said that we are movingforwardandgoingtomakeit. Another other asked if we were renting out the deeded weeks. Wayne replied yes we were, but there hasnt reallybeenmuchinterest. A further discussion took place regarding advertising the weeks for sale, posting them on website, and spreading thewordandadditionalclarificationontheproposedbudget. WilmaFountroymadeamotiontoapprovethe2010budgetaspresented. MaryJeanStevenssecondedthemotion. Apapervotewastaken. Furtherdiscussiontookplaceregardingvariousoptionsforsellingthedeededbackweeks. Wayne informed the membership that if they had specific ideas to email a board member and the options would bereviewedbytheboard. Wayne Scott at this time stated that Nancy Birdwell wanted to step down from her official position as a board member, but was willing to continue assisting the board as a consultant. He acknowledged Nancy for her many yearsofworkasaboardmemberand thankedherforyourservice.Hepresentedherflowersandtheownership joinedinshowingtheirappreciation. Electionof2009BoardMembers A discussion took place regarding the need of 1 new board member. Wayne Scott commented that Janet Schreiber has volunteered to serve as a board member. Daniel Stusser seconded the motion. Doan Blair madeamotiontoclosethenominationsandGaryBoxsecondedit. DonCogdillquestionedthenominationofafulltimeownerandaskeditthatwasaconflictofinterest. Adiscussiontookplace. Avotewasheldwiththemotionpassing. VoteTally It was announced that the 2010 budget was approved with a 31% vote in favor and a 22% negative vote. KeithBirdwellreportedthattherewere48yesvotes(includingtheproxyvotes)and8novotes. Adjournment PresidentWayneScottadjournedthemeetingat2:35p.m.