October 20, 2017

MEMO TO ALL MEMBERS OF THE CLIFFS PROPERTY OWNERS ASSOCIATION FROM YOUR BOARD OF DIRECTORS

As you know, your board of directors of the POA has previously sent a notice for a meeting of the board of directors to occur on October 20, 2017, and members had been invited to attend. This was to be in preparation for the upcoming election of directors at the annual members meeting scheduled for November 15, 2017.

However, on October 18 Double Diamond filed suit against your Property Owners Association and asked the Court for a temporary restraining order to prevent the meeting of the board of directors. A visiting Judge heard the matter and entered an order that prohibits the October 20 meeting of the board of directors as planned. That Judge also ruled that the tabulation of the proxies and votes at the annual meeting on November 15, 2017 will be done by two independent accounting firms, one for Double Diamond whom they will appoint, and the other Timothy DeVolt & Company, which your board of directors has already selected.

If you will not be attending the meeting on November 15 your board urges you to send your proxies in to Timothy DeVolt & Company for Dan Dipprey or Mike Elyea to vote your proxy because they are lot owners or live at The Cliffs and are not associated with Double Diamond.

Double Diamond had asked the Court to rule per its request on the issue of the voting for the timeshares. The Court has not done so, and that issue will be addressed as needed at a later date by the Palo Pinto County District Court. Your board of directors intends to follow and ask the Court that Double Diamond also follow the voting called for under the governing documents. While Double Diamond believes that multiple votes may be voted for any ownership in a timeshare unit, your board believes that Article Four of the Bylaws call for a single vote per timeshare unit (with the owners of that particular timeshare unit directing how that vote will be cast). This is like the voting for the lots wherein each lot receives a single vote.

If you have questions or would like to provide input, please do not hesitate to call Dan Dipprey or Mike Elyea. Thank you for your continued support for our POA, which we desire will act independently from Double Diamond’s efforts to control the POA, but responsibly with Double Diamond in helping protect The Cliffs’ development and the amenities. Please give your proxy now for your vote to Timothy DeVolt for Dan Dipprey or Mike Elyea. Thanks!

The Board of The Cliffs Property Owners’ Association, Inc.