Villas de Cortez 1 st Annual Meeting of Homeowners Association March 27, 2010 Hotel Palmas de Cortez Los Barriles, B.C.S. Mexico

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 2 Villas de Cortez HOA Meeting Agenda 1. Welcome, Introductions – Laurie Pederson - Formation of HOA, Mission Statement & Purpose - Formation of HOA, Mission Statement & Purpose 2. Secretary’s Report – Karen Olesen 3. Treasurer’s Report – Robin Jackman 4. Vice President’s Report – Bill Klotz - Pools, pumps, water heaters, parking lot - Pools, pumps, water heaters, parking lot 5. Vice President’s Report – Chucky Van Wormer - Generator, Electric meter, Future plans for Hotel & area - Generator, Electric meter, Future plans for Hotel & area 6. General Manager’s Report – Pepe - Staff, grounds, building, guest services, personal 2010 goals - Staff, grounds, building, guest services, personal 2010 goals 7. President’s Report – Laurie Pederson - Overview, Future goals, - Overview, Future goals, - Election of Board Directors - Election of Board Directors - New projects - New projects - Special assessment for Generator, solar project - Special assessment for Generator, solar project

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 3 Villas de Cortez In Memorial – Bret Connors Villas de Cortez First President

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 4 Villas de Cortez Homeowners Association Mission Statement  The Mission Statement for the Villas de Cortez:  It is the intent of the owners of the Villas de Cortez to maintain our investment property, whether one owns a Studio, Master, Presidential or Penthouse, in the best possible working order; to hire a general manager to oversee said property and supervise all staff hired on behalf of the Villas.  Each Homeowner is responsible to be current in their dues and attend the annual meeting whether in person or by proxy.  It is also the intention of said owners to have fun, fellowship and “drink” in the sun and sea together with friends and family for our mutual benefit.

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 5 Villas de Cortez Board of Directors  Laurie Pederson – President  Bill Klotz – Vice President  Carlos (Chucky) Van Wormer – Vice President  Karen Olesen – Secretary  Chris Connors - Treasurer

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 6 Villas de Cortez Board of Directors Add picture Add picture

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 7 Villas de Cortez Secretary’s Report - Highlights  1 st Board of Directors meeting held October 13, 2009  Bill, Chucky, Laurie – invited Robin to develop new accounting system & Karen to act in advisory role.  Focus on streamlining accounting, improving transparency of funds, improvement of communication  2 nd Board of Directors meeting held November 27, 2009  Focus on finalizing legal aspects of the HOA articles & BOD membership proposal  Developing 2010 budget, transfer of financial control to new accounting system  Addressing various building issues, water & electric meters, Solomon’s Restaurant, staff, insurance, etc.  3 rd Board of Directors meeting held December 30, 2009  Focus on decisions for improvement to the property – south privacy wall, pool & garden maintenance, pool repair, parking lot, beach & basement clean up.  Fine tuning of accounting system; clarify staff job performances & expectations  4 th Board of Directors meeting held January 22, 2010  Follow up of open issues

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 8 Villas de Cortez Secretary’s Report - Action Log (22 Jan 10)

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 9 Villas de Cortez Secretary’s Report

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 10 Villas de Cortez Treasurer’s Financial Report

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 11 Villas de Cortez Treasurer’s Financial Report

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 12 Villas de Cortez Treasurer’s Financial Report Bank fees49.00 Building Management Pepe Garden/pool Property Insurance Pest Control Accounting - Francis Air- conditioning repair Exterior Building Maintenance Water Heater Repair Electric Common Area Propane *Air-conditioning Electric *Water Estimated Total Monthly Expense Proposed 2010 Budget for Villa De Cortez HOA Based on 2009 and Q Average Monthly Expenses

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 13 Villas de Cortez Treasurer’s Report  Solomon’s Landing Restaurant now contributing to HOA Presidential dues

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 14 Villas de Cortez Vice President Bill’s Report  Pool - maintenance and repairs  Landscaping, new privacy wall  Water heater & pump system  Driveway, Parking Lot & Car Ports  Building Maintenance  Hand rails  Electrical repair in basement  Stair and walkway repairs  Liability signs at pool

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 15 Villas de Cortez New Driveway, Parking Lot - March 2010

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 16 Villas de Cortez New Driveway, Parking Lot - March 2010

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 17 Villas de Cortez New Privacy Wall December 2009 March 2010

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 18 Villas de Cortez Pool Repair Complete March 2010

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 19 Villas de Cortez Serena the Mermaid - March 2010

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 20 Villas de Cortez Vice President’s Report - Chucky  AC Electric Meter  Generator  Future Plans for Hotel Palmas and East Cape

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 21 Villas de Cortez New Projects Under Review - Generator  Planning for Generator  Proposal to purchase two Cummings units  One dedicated for building power  One dedicated for air conditioning power  Total estimated cost $73K including installation  Estimated Cost Breakdown per unit  12 Studios - $1,700 each  9 Masters - $2,500 each  4 Presidentials - $5,000 each  1 Penthouse - $10,000  Soloman’s Restaurant - $10,000  Requires Special Assessment

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 22 Villas de Cortez General Manager’s Report - Pepe  Staff  Grounds  Building  Guest Services  Personal 2010 Goals

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 23 Villas de Cortez Pool and Garden Maintenance - Beto

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 24 Villas de Cortez General Manager’s Report - Pepe

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 25 Villas de Cortez General Manager’s Report - Pepe

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 26 Villas de Cortez President’s Report - Laurie  Overview  Future Goals  Election of Board of Directors

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 27 Villas de Cortez  Solomon’s Landing Restaurant  Curfew 10 pm established  Options to control foot traffic  Gate with card key on south walk  Rope barrier on north side

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 28 Villas de Cortez - New Business Projects Under Review – Solar Power  Solar Power project under review for heating of Jacuzzi Pool during winter months  Preliminary bids coming in

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 29 Villas de Cortez How Far We’ve Come – The Beginning September 2004 December 2004

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 30 Villas de Cortez How Far We’ve Come – The Building November 2005 June 2006

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 31 Villas de Cortez How Far We’ve Come – The Building July 2006August 2006

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 32 Villas de Cortez How Far We’ve Come – The Building October 2007

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 33 Villas de Cortez How Far We’ve Come – The Pools March 2007 May 2007

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 34 Villas de Cortez How Far We’ve Come – The Jacuzzi Pool June 2007

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 35 Villas de Cortez How Far We’ve Come – The Infinity Pool April 2007 August 2007

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 36 Villas de Cortez Morning Rush Hour at the Palmas, Villas

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 37 Ole and Don Roberto - Two Fun Guys – (Mar 07) (who couldn’t be here today)

Villas de Cortez – HOA Meeting 27 March 10, Los Barriles, BCS, Mx 38 Homeowners’ Forum  Questions  Comments