REPORT ON THE WINTERHAVEN UNIT OWNERS ASSOCIATION ANNUAL MEETING The meeting was started at 10:10 a.m. July 26, 2008 in the lobby of the Winterhaven Condominiums and was called to order by the President. (A)

ROLL CALL (PROOF OF QUORUM) 1. The following unit owners were present in person: 1. 2. 3. 4. 5. 6. 7. 8.

Unit #E106 – Susie Norman Unit #D104 – Mary Cox Unit #D303 – Mary Cox Unit #D102 – Laurie Pate Unit #D304 – DeWayne Porter Unit #E304 – Betty White Unit #D101 – Gary & Trice Benge Unit #E302 – Stefan & Judy Hoops

2. The following owners were present by proxies: The following proxies were granted to Betty White: 1. Unit #D105-William & Barbara Preslock 2. Unit #D106-William & Barbara Preslock 3. Unit #D203-Richard Bland 4. Unit #D302-Roy Shrewsbury 5. Unit #E104-Vinestreet, LLC 6. Unit #E205-Vitrinite, Inc. 7. Unit #E301-Jeff & Mirchaux Merhout 8. Unit #D305-David Smith

3. There were present in person or by proxy a total of 13 Unit Owners owning a total of 16 units which represents 44% of the interest in the WinterHaven Condominiums and therefore constitutes a quorum being an interest greater than or equal to twenty five percent (25%). (B)

PROOF OF ADEQUACY OF NOTICE OF MEETING: A copy of the July 2, 2006 letter sent to all the Unit Owners by Betty White, calling for the Annual Meeting on July 26, 2008.

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(C )

READING OF THE MINUTES FROM THE PRECEEDING MEETING The motion was made to suspend the minutes, the motion was seconded and the vote was unanimous

(D) Report of Officers. 1. Treasurer’s report: a. Presented by Betty White, the President, 10/1/07 to 5/30/08 P&L and Balance Sheet (see attached copy) i. Discussed Unrestricted Net Assets as to what exactly was classified under that category and Mary Cox would check with Sarah Rahal to get a better understanding. ii. Discussed that the copier’s lease had been paid off and a warranty was in place. (E) Reports of the Executive Board. – None (F) Reports of Committees – No Committees. (G) Election or Appointment of tellers of election (when so required). NOT NEEDED (H) Election of members of the Executive Board (when so required). Presented slate of nominees: Richard Bland Roy Shrewsbury Betty White Dwayne Porter Laurie Pate Asked for nominations from the floor. The following Owners were nominated: Mary Cox Trice Benge Judy Hoops A Motion was made to vote the members onto the board and seconded with a Unanimous vote in favor of the motion. (I) Unfinished Business: 1.Electrical a. Plans to replace electrical panel and the board is still waiting on estimates

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b. Addressing the issue of the exterior lights will be dealt with after the electrical panel is replaced. 2.Gutters a. The board is still waiting on estimates 3. Refurbishing the Lodge a. Laurie Pate and Mary Cox will work together on this project to present ideas to the board 4. Telephone System a. The telephone system had been repaired but will probably need to be replaced in the future. (J) New Business: 1. Raleigh Realty a. Discussed issues of who should pay for the clicks on the website, asking for more advertisement, and a checklist for owners to provide essential items in each condo for their guest. Decisions would be made at the Executive Board meeting on how to handle all these issues. 2. Bar lease b. Discussed underage drinking, bartenders getting drunk, the hot tub not always being available and the lack of supervision when Gary Honaker was not present. Decisions would be made at the Executive Board meeting on how to handle all these issues. 3. Fireplaces a. Discussed were the conditions of the fireplace and we needed to check with Cindy on the last time fireplaces were inspected and what we needed to do to get this done. 4. Discussed next year’s budget a. Could eliminate the handling fees paid by the owners that is applied when they participate in the program of paying their HOA fees on a monthly or quarterly basis. 5. Other new business: None (K) ADJOURNMENT: A motion was made to adjourn and seconded with a Unanimous vote at 11:40