PRESIDENT’S REPORT

Board Meeting June 8, 2009

On Wednesday, June 3, 2009, a settlement agreement was reached with Semlak after a 12 hour mediation session. Attending for Seminole Lakes POA were Linda Huber, Sherry Danko from our management company, and myself. Our attorney, a Semlak representative, and Semlak’s attorney were present. The session was conducted by a professional and certified mediator.

There were numerous points which allowed the agreement to be settled.

The major points were:

1. The settlement agreement will allow the lawsuit filed by Semlak against the POA to be dismissed.

2. The easement location will be in front of the guardhouse and between the two median strips. The previous easement came out behind our guardhouse, and that is now null and void.

3. We will receive a one time payment of $5000 to be used for road maintenance.

4. Construction traffic cannot use Seminole Lakes Blvd to enter and exit the plaza during construction of additional buildings.

5. Semlak will pay all costs to do a survey and legal description of the easement. If any portion of our median strip has to be removed, Semlak is responsible for that.

The major costs in defending the lawsuit are now behind us.

It is expected that the easement road and development of the plaza will not start for a number of years.

The actual details of the mediation session are confidential, and all persons that were in attendance are bound by this rule. However, as in the past, we will keep you informed when we find out what is planned for the plaza.