1. 1 Welcome to the Countrylane Woods II Homeowners Association, Inc. Annual Corporate Meeting March 6, 2012

2. 2 Countrylane Woods II Tonights Agenda Proof of notice of meeting or waiver of notice Proof of notice of meeting or waiver of notice Reading of minutes of the preceding meeting Reading of minutes of the preceding meeting Reports of officers Reports of officers –Introductions –Residents Who Made a Difference in 2011 –2011 Accomplishments –2011/2012 Financial Update Reports of committees Reports of committees –Architectural Control Committee Election of Directors, if applicable Election of Directors, if applicable Unfinished/New business Unfinished/New business –Volunteers needed –Tile foyer –Channel A & B Restoration –Manchester Alderpersons –Subdivision Lawsuit Update Q&A Q&A Home Owner Comments Home Owner Comments Adjourn Adjourn

3. 3 Countrylane Woods II Proof of Notice of Mtg. Post Card Notice Newsletter Web Site

4. 4 Countrylane Woods II Reading of Minutes of Preceding Meeting CLWII Homeowners Association Agenda/Meeting Minutes, March 7, 2011 Directors in Attendance: K. Brown, L. Lee, M. Ritchie, E. Ruegg, C. Weber H/O in attendance: Approx. 22 Meeting held at Barretts Elementary School Meeting called to order at 7:05 p.m. and adjourned at 8:25 p.m. 1. Trustees/Directors thanked Keith Brown for providing the projector. This saved CLW lI about $175 ± including the school providing the screen. 2. Proof of Notice of Meeting 3. Reading of minutes of preceding meeting (March, 2010). Lynn Lee read the minutes of the 2010 corporate meeting. Minutes were Lynn Lee read the minutes of the 2010 corporate meeting. Minutes were accepted and approved. accepted and approved.

5. 5 Countrylane Woods II Reading of Minutes of Preceding Meeting 4. Reports of Officers: -Introduction of Directors/Trustees included Eric Ruegg, President; Mike Ritchie, -Introduction of Directors/Trustees included Eric Ruegg, President; Mike Ritchie, Treasurer; Carol Weber, Secretary; Keith Brown, 1st Vice President; Lynn Lee, Treasurer; Carol Weber, Secretary; Keith Brown, 1st Vice President; Lynn Lee, 2nd Vice President. 2nd Vice President. -Residents who made a difference in 2009 included -Residents who made a difference in 2009 included Karen Paszek, Easter Egg Hunt Karen Paszek, Easter Egg Hunt Nancy Pound, Tennis lessons & 7/4 mixed doubles exhibition Nancy Pound, Tennis lessons & 7/4 mixed doubles exhibition Don Dippold, Tennis Courts & 7/4 mixed doubles exhibition Don Dippold, Tennis Courts & 7/4 mixed doubles exhibition Carol Weber, Country Times newsletters Carol Weber, Country Times newsletters Lynn Lee, Clubhouse Rentals Lynn Lee, Clubhouse Rentals Keith Brown, Webmaster Keith Brown, Webmaster

6. 6 Countrylane Woods II Reading of Minutes of Preceding Meeting 2010 Updates Added 20 cu. yd. of mulch to picnic area, provided free by Hansons Tree Service-Channel A work. Added 20 cu. yd. of mulch to picnic area, provided free by Hansons Tree Service-Channel A work. Mowing costs were $14,730 Mowing costs were $14,730 Tree removal costs were $6,645 Tree removal costs were $6,645 St. Louis Country required re-inspection of all pools costing $250 St. Louis Country required re-inspection of all pools costing $250 Kitchen was remodeled with new cabinets, appliances, lights, floor Kitchen was remodeled with new cabinets, appliances, lights, floor Banquet room remodeled with new floor, lights, baseboard & fan Banquet room remodeled with new floor, lights, baseboard & fan Reused old refrigerator and counter from kitchen for pool patrons Reused old refrigerator and counter from kitchen for pool patrons Multi-color camera security system with DVR installed Multi-color camera security system with DVR installed

7. 7 Countrylane Woods II Reading of Minutes of Preceding Meeting -Financial Update-a financial overview was given by Treasurer, Mike Ritchie. He reviewed CLWIIs income and expenses and detailed the financial management and reviewed CLWIIs income and expenses and detailed the financial management and the budget processes for the upcoming year. the budget processes for the upcoming year. Account Balances: Account Balances: AccountBalance 12/31/09Balance 12/31/10 Checking$ 33,919$ 36,143 Money Market 37,061 139,103 Cert. of Deposit 101,217 0.00 Total$172,197$175,246 Income-Expense Summary Income-Expense Summary 2010 Budget2010 Actual2011 Budget Total Operating Income$141,360$140,045$135,640 Interest Income$ 2,500 $ 852 $ 1,500 Interest Income$ 2,500 $ 852 $ 1,500 Total Income$143,860$140,897$138,140 Total Income$143,860$140,897$138,140 Total Expenses$141,895$137,738$136,970

8. 8 Countrylane Woods II Reading of Minutes of Preceding Meeting 5. Reports of Committees: -Architectural Control CommitteeJoel Kray, Chairperson, thanked all the members -Architectural Control CommitteeJoel Kray, Chairperson, thanked all the members of the ACC for their hours spent in reviewing and approving homeowner remodeling and replacement requests. Members include Karen Kenny, Eric Nestel, Mary Dippold, and Kathy Rayfield. 27 applications were submitted in 2010 vs. 37 in 2009. Letters written to homeowners regarding, mailbox posts, fence height, fences backing to Big Bend, & non-compliant colors on cedar terrace homes. Photo updates to be done in spring. Also offered reminder to contact ACC prior to any outside work is done 6. Election of Directors Eric Ruegg was elected a trustee & director serving until 1/13 Eric Ruegg was elected a trustee & director serving until 1/13 Mike Ritchie was elected a trustee & director serving until 1/13 Mike Ritchie was elected a trustee & director serving until 1/13 Carol Weber was elected a trustee & director serving until 1/13 Carol Weber was elected a trustee & director serving until 1/13

9. 9 Countrylane Woods II Reading of Minutes of Preceding Meeting 7. Unfinished/New Business: -Clubhouse refurbishment,-foyer tiling approx. cost $2,500 (project in 2011 assessment) -Clubhouse refurbishment,-foyer tiling approx. cost $2,500 (project in 2011 assessment) Channel A-Completed 12/10, Review of new tree survival, Spring 2011, Trustees attended a follow-up meeting with the City on 3/2/11, Issue with rock specs, replacement will be done ending 6/11. Channel A-Completed 12/10, Review of new tree survival, Spring 2011, Trustees attended a follow-up meeting with the City on 3/2/11, Issue with rock specs, replacement will be done ending 6/11. Channel B-Ameren Missouri has removed all electric cables from the creek bed as of 1/11 at the request of the Trustees; 2/22/11-Introduction of Bill directing City staff to prioritize all storm water projects. This will probably be defeated. Priorities already established in via study in 2005. Channel B-Ameren Missouri has removed all electric cables from the creek bed as of 1/11 at the request of the Trustees; 2/22/11-Introduction of Bill directing City staff to prioritize all storm water projects. This will probably be defeated. Priorities already established in via study in 2005. 2010 Lawsuit update-2006 a lawsuit filed by 4 residents and later enjoined by 12 others against the Trustees and Directors of CLW II 2010 Lawsuit update-2006 a lawsuit filed by 4 residents and later enjoined by 12 others against the Trustees and Directors of CLW II Results of the lawsuit The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. The are the governing bylaws of our Homeowners Association Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. The are the governing bylaws of our Homeowners Association

10. 10 Countrylane Woods II Reading of Minutes of Preceding Meeting 7.Unfinished/New Business: The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid Results of the lawsuit The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. The are the governing bylaws of our Homeowners Association Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. The are the governing bylaws of our Homeowners Association The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid The court ruled that the duly elected Trustees and Directors of CLWII were Eric Ruegg, Keith Brown, Lynn Lee, Mike Ritchie and Carol Weber The court ruled that the duly elected Trustees and Directors of CLWII were Eric Ruegg, Keith Brown, Lynn Lee, Mike Ritchie and Carol Weber Court costs were assessed against the plaintiffs Court costs were assessed against the plaintiffs

11. 11 Countrylane Woods II Reading of Minutes of Preceding Meeting 7.Unfinished/New Business: Plaintiffs file a motion July 2010 Plaintiffs file a motion for a new trial and to reconsider the previous judgment July 2010 Plaintiffs file a motion for a new trial and to reconsider the previous judgment The court denies the motion The court denies the motion Appeal by Plaintiffs Plaintiffs file a notice with the court that they plan to appeal the case Plaintiffs file a notice with the court that they plan to appeal the case An appeal has been filed with the appellate court An appeal has been filed with the appellate court Small Claims Court On Dec. 30 resident, John Osthus filed a small claims case claiming that he had to unlawfully pay assessments in excess of $250 for the years 2007, 2008, 2009 and 2010. He also claimed that indenture amendments were not correctly passed and the value of his house had decreased by the new restrictions. On Dec. 30 resident, John Osthus filed a small claims case claiming that he had to unlawfully pay assessments in excess of $250 for the years 2007, 2008, 2009 and 2010. He also claimed that indenture amendments were not correctly passed and the value of his house had decreased by the new restrictions. The case was heard on Feb 2, 2011. The subdivision attorney filed two motions to dismiss and a counter claim for abuse of process. The case was heard on Feb 2, 2011. The subdivision attorney filed two motions to dismiss and a counter claim for abuse of process. The court upheld the motions to dismiss and awarded CLW II HOA $500 in the counterclaim The court upheld the motions to dismiss and awarded CLW II HOA $500 in the counterclaim John Osthus has requested a Trial De Novo, an appeal in small claims court John Osthus has requested a Trial De Novo, an appeal in small claims court

12. 12 Countrylane Woods II Reports of Officers-Introductions Directors/Trustees Directors/Trustees –Eric Ruegg –Mike Ritchie –Carol Weber –Keith Brown –Lynn Lee

13. 13 Countrylane Woods II Reports of Officers-Introductions Residents Who Make a Difference Renee Fronabarger, Easter Egg Hunt Renee Fronabarger, Easter Egg Hunt Nancy Pound, Tennis lessons Nancy Pound, Tennis lessons John Malone, Repaired PVC cooling pipes on Z pool John Malone, Repaired PVC cooling pipes on Z pool Keven Eberhardt, Donated refrigerator for pool patron usage Keven Eberhardt, Donated refrigerator for pool patron usage CLW II Swim Team/Parents, BBQ Fundraiser for National Night Out, & Eleanor Lyons, Ice Cream Treats for NNO CLW II Swim Team/Parents, BBQ Fundraiser for National Night Out, & Eleanor Lyons, Ice Cream Treats for NNO Joel Kray, Karen Dunne, Kathy Rayfield, Eric Nestel, Mary Dippold, Architectural Control Committee Joel Kray, Karen Dunne, Kathy Rayfield, Eric Nestel, Mary Dippold, Architectural Control Committee Dexter Hall, Clubhouse renovation Dexter Hall, Clubhouse renovation Carol Weber- Newsletter, Lynn Lee- Clubhouse Rental, Keith Brown- Website & Email Carol Weber- Newsletter, Lynn Lee- Clubhouse Rental, Keith Brown- Website & Email

14. 14 Countrylane Woods II Report of Officers-2011 Accomplishments New St. Louis County Siren System

15. 15 Countrylane Woods II Report of Officers- 2011 Accomplishments Common Groun d Reviewed 4 RFPs for mowing-3 year contract. Awarded to Lawn Enforcement Reviewed 4 RFPs for mowing-3 year contract. Awarded to Lawn Enforcement Reviewed 2 RFPs for landscaping & planting. Awarded to Matthew Wyatt Reviewed 2 RFPs for landscaping & planting. Awarded to Matthew Wyatt

16. 16 Countrylane Woods II Report of Officers- 2011 Accomplishments Pool Reviewed 3 RFPs for pool mgmt. services. Awarded 3-yr. contract (2012-2014) to Midwest Pool Mgmt Reviewed 3 RFPs for pool mgmt. services. Awarded 3-yr. contract (2012-2014) to Midwest Pool Mgmt No violations issued by St. Louis County at our pools for the entire 2011 swim season No violations issued by St. Louis County at our pools for the entire 2011 swim season

17. 17 Countrylane Woods II Report of Officers-2011 Accomplishments Clubhouse Tiled Foyer Tiled Foyer Reviewed 4 RFPs for replacement of HVAC. Awarded to Eggers Htg & A/C Reviewed 4 RFPs for replacement of HVAC. Awarded to Eggers Htg & A/C Sent out two RFPs to repair/remodel both restrooms. Sent out two RFPs to repair/remodel both restrooms. Instituted No Smoking in clubhouse/pool areas and established two smoking areas with waste receptacles Instituted No Smoking in clubhouse/pool areas and established two smoking areas with waste receptacles

18. 18 Countrylane Woods II Report of Officers-2011 Accomplishments Clubhouse-continued Updated all window treatments-4 windows and sliding door & two panels Updated all window treatments-4 windows and sliding door & two panels

19. 1919 Countrylane Woods II Report of Officers-2011/2012 Financial Update Operating Income Operating Income AssessmentsAssessments Clubhouse RentalClubhouse Rental Newsletter AdsNewsletter Ads Non-Operating Income Non-Operating Income Interest From Bank AccountsInterest From Bank Accounts Dividends From CDs & Money MarketDividends From CDs & Money Market Operating Expenses Operating Expenses Expenses mandatory for the maintenance and operation of pool, clubhouse, common grounds, and administration of the subdivision Expenses mandatory for the maintenance and operation of pool, clubhouse, common grounds, and administration of the subdivision Project Expenses Project Expenses Expenses not mandatory for maintenance and operation of CLW II facilitiesExpenses not mandatory for maintenance and operation of CLW II facilities

20. 20 Countrylane Woods II Report of Officers-2011/2012 Financial Update Objectives Provide Fiscal Planning & Controls –M–M–M–Match Total Expense = Total Income Minimize or Eliminate Taxes –M–M–M–Manage Money Effectively Interest earned Operating Income Operating Expenses Project Expenses

21. 21 Countrylane Woods II Report of Officers-2011/2012 Financial Update Manage Income Manage Income –Total Income = Operating Income + Interest/Dividends –Operating Income is primarily affected by changes in the Assessment of Homes Manage Expenses Manage Expenses –Total Expense = Operating Expense + Project Expense

22. 22 Countrylane Woods II Report of Officers-2011/2012 Financial Update Account Balances Account Type Balance 12/31/10 Balance 12/31/11 Checking$36,143$46,831 Money Market$139,103$139,611 Total$175,246$186,442

23. 23 Countrylane Woods II Report of Officers-2011/2012 Financial Update Total Income-Expense Summary 2011 Budget 2011 Actual 2012 Budget Total Operating Income$136,640$146,988$136,640 Interest Income$1,500$536$400 Total Income$138,140$147,524$137,040 Total Expenses$136,970$136,311$134,315

24. 24 Countrylane Woods II Report of Officers-2011/2012 Finances Complete the following 2012 Projects Complete the following 2012 Projects –Bathroom Renovation –Great Room Renovation Manage Expenses to Meet Income Manage Expenses to Meet Income

25. Accomplishments Since 2000 25 Countrylane Woods II Report of Officers-2011/2012 Finances Goals For The Trustees Since 2000 Goals For The Trustees Since 2000 Modernize the CLWII Facilities and Common Grounds to Provide Modernize the CLWII Facilities and Common Grounds to Provide Increased Value for Our Homes Increased Value for Our Homes An Attractive & Safe Place for Residents and their Children to Play, Swim, & Hold Events An Attractive & Safe Place for Residents and their Children to Play, Swim, & Hold Events A Neighborhood That Attracts Potential Home Buyers A Neighborhood That Attracts Potential Home Buyers

26. Accomplishments Since 2000 26 Countrylane Woods II Report of Officers-2011/2012 Finances Common Grounds Common Grounds Erosion Repair – 2 Areas Erosion Repair – 2 Areas Renovated Picnic Areas Renovated Picnic Areas Built Flower Beds Built Flower Beds Installed Sprinklers for Flower Beds Installed Sprinklers for Flower Beds Repaired Tennis Courts – Twice Repaired Tennis Courts – Twice Renovated Playground Renovated Playground Sealed & Striped Parking Lot Sealed & Striped Parking Lot

27. Accomplishments Since 2000 27 Countrylane Woods II Report of Officers-2011/2012 Finances Pool Pool Resurfaced Lap Pool Resurfaced Lap Pool Repaired Pool Deck Caulking Repaired Pool Deck Caulking Replaced Pool Filters Replaced Pool Filters Replaced Pool Lounges, Chairs & Tables Replaced Pool Lounges, Chairs & Tables

28. Accomplishments Since 2000 28 Countrylane Woods II Report of Officers-2011/2012 Finances Clubhouse Exterior Clubhouse Exterior Resided & Painted Clubhouse Resided & Painted Clubhouse Replaced Windows & Gutters Replaced Windows & Gutters Rebuilt Deck Rebuilt Deck Repaired Roof & Chimney Leaks Repaired Roof & Chimney Leaks Installed Security Cameras Installed Security Cameras

29. Accomplishments Since 2000 29 Countrylane Woods II Report of Officers-2011/2012 Finances Clubhouse Interior Clubhouse Interior Renovated Kitchen & Banquet Room Renovated Kitchen & Banquet Room Replaced Electrical Panel and Service Replaced Electrical Panel and Service New Banquet Chairs, Tables & Bar Stools New Banquet Chairs, Tables & Bar Stools New Blinds & Curtains New Blinds & Curtains Installed Wall Air Conditioners Installed Wall Air Conditioners Replaced Furnace and Air Conditioner Replaced Furnace and Air Conditioner Painted Lower Level Painted Lower Level Replaced Check-In Desk Replaced Check-In Desk Installed Wireless Internet Access Installed Wireless Internet Access Installed HDTV Access Installed HDTV Access

30. Accomplishments Since 2000 30 Countrylane Woods II Report of Officers-2011/2012 Finances Looking Forward Looking Forward Tennis Court Repair Tennis Court Repair Resurface Parking Lot Resurface Parking Lot

31. 31 Countrylane Woods II Reports of Committees ACC Introductions Architectural Control Committee Architectural Control Committee –Mary Dippold –Karen Dunne –Joel Kray (Chairperson) –Eric Nestel –Kathy Rayfield

32. 32 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011 Approved Applications for Review of Exterior Home Repair / Improvement Projects Total of 48 Applications Received Total of 72 Project Approved Breakdown of Approvals 19 Color samples approved 19 Color samples approved 4 Color samples denied 4 Color samples denied

33. 33 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011-continued Breakdown of Approvals-continued 11 Siding Projects, 4 T1-11, 3 Cement/fiber, 4 LP Smart Side 11 Siding Projects, 4 T1-11, 3 Cement/fiber, 4 LP Smart Side 7 Doors painting 7 Doors painting 6 Decks replaced, 4 existing decks stained 6 Decks replaced, 4 existing decks stained 3 New fences, 4 Replacement fences, 1 Roof 3 New fences, 4 Replacement fences, 1 Roof 3 Projects Replace Windows, 2 Doors replaced 3 Projects Replace Windows, 2 Doors replaced 3 Projects Replace Windows, 2 Door Replacements 3 Projects Replace Windows, 2 Door Replacements 12 Other projects (awing, screened porch, 2-story addition, driveway, brick patio, concrete stairs, etc.) 12 Other projects (awing, screened porch, 2-story addition, driveway, brick patio, concrete stairs, etc.)

34. 34 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011-continued Letters Written to Homeowners from ACC Cedar terrace home & trim panted a disallowed color without ACC approval. Homeowner given 12 months to comply. Letters were issued to homeowners with fences along Big Bend to have them painted at one time & in one color at a competitive bulk rate. Not enough participation so project was ended. No further action.

35. 35 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011- continued Letters Written to Homeowners from ACC-continued In the past the ACC has approved paint colors based on small paint samples with finished project a different color. The ACC now requires paint samples be submitted on a one foot square of material on the home or to be used on the home. Indentures require wood tones of tan, brown, cedar, or shades of gray, not another color with a little gray mixed in. In the past the ACC has approved paint colors based on small paint samples with finished project a different color. The ACC now requires paint samples be submitted on a one foot square of material on the home or to be used on the home. Indentures require wood tones of tan, brown, cedar, or shades of gray, not another color with a little gray mixed in. Updated photos of most cedar homes with projects between 2006-09 have been taken, to finish Spring 2012. Updated photos of most cedar homes with projects between 2006-09 have been taken, to finish Spring 2012.

36. 36 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011- continued ACC Plans For 2012 Continue to remind homeowners that any trim around windows and doors cannot be painted white or black. Horizontal and corner trim must be the same color as the home. Continue to remind homeowners that any trim around windows and doors cannot be painted white or black. Horizontal and corner trim must be the same color as the home.

37. 37 Countrylane Woods II Reports of Committees Architectural Control Committee Summary of 2011-ACC Plans For 2012-continued Reminder to ALL Residents of Countrylane Woods II A Review for Architectural Control Should be Completed for Any Exterior Home Repair or Improvement Project except planting trees and shrubs A Review for Architectural Control Should be Completed for Any Exterior Home Repair or Improvement Project except planting trees and shrubs This quick and painless process is in place to prevent a homeowner from making mistakes that may end up costing them time and money. This quick and painless process is in place to prevent a homeowner from making mistakes that may end up costing them time and money. Please ask for permission in advance. Please ask for permission in advance. Do not ask for forgiveness after the fact Do not ask for forgiveness after the fact Projects done in violation of the subdivision indentures will need to be redone at the homeowners expense. Projects done in violation of the subdivision indentures will need to be redone at the homeowners expense.

38. 38 Countrylane Woods II Election of Directors, If Applicable Eric Ruegg elected as trustee and corporate director/President– Term expires 1/13 Eric Ruegg elected as trustee and corporate director/President– Term expires 1/13 Mike Ritchie elected as trustee and corporate director/Treasurer– Term expires 1/13 Carol Weber elected as trustee and corporate director/Secretary– Term expires 1/13

39. 39 Countrylane Woods II Unfinished/New Business Volunteers Needed Volunteers Needed Architectural Control Committee Architectural Control Committee Build new lifeguard stands in early spring 2012 Build new lifeguard stands in early spring 2012 Trustee Positions Expiring, Trustee Positions Expiring, - 1 in 11/5/12 - 3 in 1/31/13 Clubhouse/Picnic Area Clean-up Clubhouse/Picnic Area Clean-up Simple repair work at clubhouse Simple repair work at clubhouse

40. 40 Countrylane Woods II Unfinished/New Business Channel A Restoration Completed 12/10 Completed 12/10 Re-rock creek bed with proper rock, completed 7/11. Re-rock creek bed with proper rock, completed 7/11. CLW II common ground re- seeded & erosion issues addressed, 10/11 CLW II common ground re- seeded & erosion issues addressed, 10/11 Review of tree survival, Spring 2012 Review of tree survival, Spring 2012

41. 41 Countrylane Woods II Unfinished/New Business Channel B Restoration $300,000 appropriated by City of Manchester for engineering study. North section first, South section second. Updates to follow. $300,000 appropriated by City of Manchester for engineering study. North section first, South section second. Updates to follow.

42. 42 Countrylane Woods II Unfinished/New Business City of Manchester Alderpersons City of Manchester Alderpersons Michael Clement Michael Clement Marilyn Ottenad Marilyn Ottenad

43. 43 Countrylane Woods II Unfinished/New Business Lawsuit Update 2006 a lawsuit filed by 4 residents and later enjoined by 12 others against the Trustees and Directors of CLW II 2006 a lawsuit filed by 4 residents and later enjoined by 12 others against the Trustees and Directors of CLW II Results of the lawsuit The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws The court ruled that indentures are attached to the land and cannot be superseded by corporate bylaws Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. These are the governing bylaws of our Homeowners Association Our corporate bylaws were adopted in 2005 and ratified by the homeowners by a vote in 2009. These are the governing bylaws of our Homeowners Association The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid The elections held by the plaintiffs to remove the Trustees and Directors were declared invalid

44. 44 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued The court ruled that the duly elected Trustees and Directors of CLWII were Eric Ruegg, Keith Brown, Lynn Lee, Mike Ritchie and Carol Weber The court ruled that the duly elected Trustees and Directors of CLWII were Eric Ruegg, Keith Brown, Lynn Lee, Mike Ritchie and Carol Weber Court costs were assessed against the plaintiffs Court costs were assessed against the plaintiffs Plaintiffs file a motion July 2010 Plaintiffs file a motion for a new trial and to reconsider the previous judgment July 2010 Plaintiffs file a motion for a new trial and to reconsider the previous judgment The court denies the motion The court denies the motion

45. 45 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Appeals Court Motion to Appeal by Plaintiffs The Plaintiffs position was that the Circuit Court did not rule on all complaints and the case should be appealed. The Appeals Court ruled that since the Plaintiffs position was that there was no final ruling, then the case could not be appealed and the motion for appeal was denied. The Plaintiffs position was that the Circuit Court did not rule on all complaints and the case should be appealed. The Appeals Court ruled that since the Plaintiffs position was that there was no final ruling, then the case could not be appealed and the motion for appeal was denied. Circuit Court Plaintiffs petitioned the Circuit Court to re-open the evidence (trial). Plaintiffs petitioned the Circuit Court to re-open the evidence (trial). 11/2/2011-The Circuit Court filed an Amended Judgment of Finding of Fact and Conclusions of Law and Order denying Plaintiffs motion to re-open evidence. 11/2/2011-The Circuit Court filed an Amended Judgment of Finding of Fact and Conclusions of Law and Order denying Plaintiffs motion to re-open evidence.

46. 46 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Appeals Court 2/21/2012-Plaintiffs have filed a notice of appeal of the Circuit Courts decision 2/21/2012-Plaintiffs have filed a notice of appeal of the Circuit Courts decision Small Claims Court 12/30/2010-John Osthus filed a small claims case claiming that he had to unlawfully pay assessments in excess of $250 for the years 2007, 2008, 2009 and 2010. He also claimed that indenture amendments were not correctly passed and the value of his house had decreased by the new restrictions.

47. 47 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Small Claims Court 2/2/ 2011-The subdivision attorney filed two motions to dismiss and a counter claim for abuse of process. 2/2/ 2011-The subdivision attorney filed two motions to dismiss and a counter claim for abuse of process. The court upheld the motions to dismiss and awarded CLW II HOA $500 in the counterclaim The court upheld the motions to dismiss and awarded CLW II HOA $500 in the counterclaim Trial De Novo (Small Claims Appeal) 4/1/2011-The Trial De Novo was dismissed since the court stenographer forgot to take notes. 4/1/2011-The Trial De Novo was dismissed since the court stenographer forgot to take notes.

48. 48 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Small Claims Court 8-29-2011-The second Trial De Novo ruled that all claims brought by Mr. Osthus were dismissed just as in the original small claims court. The $500 awarded to the subdivision for abuse of process was dismissed. 8-29-2011-The second Trial De Novo ruled that all claims brought by Mr. Osthus were dismissed just as in the original small claims court. The $500 awarded to the subdivision for abuse of process was dismissed.

49. 49 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Appellants & Intervenor- Appellants Source: Missouri Case Net Below are the residents who filed the notice to appeal and those who later intervened and were added to the appeal. Below are the residents who filed the notice to appeal and those who later intervened and were added to the appeal. Appellants - John Osthus, Michael Page, Richard Duff, Mary Fitzpatrick Appellants - John Osthus, Michael Page, Richard Duff, Mary Fitzpatrick Intervener-Appellants - Frances Levy, Harold & Beulah Boll, Deneal Schilmeister, John & Patricia Hamill, John & Beverly Boyland, Francis Basler, Steve & Mary Koken Buschman, Henry & Patricia Thill, Camille Demeter, Dorothy Callier, Miles Whitener, Doris Hendrickson, Brad Bomaz, and Margaret Mathey Intervener-Appellants - Frances Levy, Harold & Beulah Boll, Deneal Schilmeister, John & Patricia Hamill, John & Beverly Boyland, Francis Basler, Steve & Mary Koken Buschman, Henry & Patricia Thill, Camille Demeter, Dorothy Callier, Miles Whitener, Doris Hendrickson, Brad Bomaz, and Margaret Mathey

50. 50 Countrylane Woods II Unfinished/New Business Lawsuit Update - continued Lawsuit Costs to Date Direct costs to CLW II $18,107.32 Direct costs to CLW II $18,107.32 Travelers Insurance $64,370.00 Travelers Insurance $64,370.00 TOTAL $82,477.32 TOTAL $82,477.32

51. 51 Countrylane Woods II Homeowner Comments Countrylane Woods II Homeowner Comments

52. 52 Countrylane Woods II Adjourn Countrylane Woods II Adjourn

53. 53 Countrylane Woods II Homeowners Association, Inc. Thanks for attending and please drive home safely