Newport Miami Beach Condominium Association, Inc.

ANNUAL OWNERS MEETING MINUTES

April 6, 2010

Present: Martha Sam, President

Ray Nyhuis, Vice President/Treasurer.

Raquel Valusek, Secretary (via Telephone)

Robert Cornfeld, Developer, Owner of Newport Operating Corp.

Howard Gnatt, representative of the Management Co., acting as Secretary

The annual Owners meeting for Newport Miami Beach Condominium Association, Inc. was called to order at 11:17 a.m. on Tuesday, April 6, 2010 in the Tiffany Room at 16701 Collins Avenue, Miami Beach, Florida. Martha Sam, Director and President of the Association, motioned for Ray Nyhuis to be Chairman of the meeting. All in favor 3, against, 0.

After certifying that 53% of the owners of the condominium were either present or represented by proxy, Mr. Gnatt declared that there was a quorum, and that the Annual Owners meeting was official.

Copies of the “Receipt of Mailing” as well as the notices of Meeting were presented by Mr. Gnatt as proper proof of notice of the meeting.

Ray Nyhuis made a motion to waive the reading of the minutes of the last meeting. Motion seconded by Martha Sam.

Mr. Gnatt presented the financial position of the condominium. He stated that the Association’s 2009 financials are being audited by Gerstle, Rosen Goldenberg, PA and will be filed with the State of Florida by May 31, 2010 per the timeshare statutes. A copy of the certified audit will be available in the Homeowners Association office to anyone who wants it. He also stated that the condominium was in a good financial position, and expected no problems in the future.

Mr. Nyhuis introduced the General Manager of the resort, Mr. Shand Luce. Mr. Luce gave a report on the hotel which included:

1.  The website, NewportHOA.com and its success in receiving maintenance payments as well as requesting exchanges and confirming reservations. It is an inexpensive way for our owners to keep in contact with the resort as all condo notices as well as all meeting minutes are posted on the site. It is currently being updated so that payments can be safely made online.

2.  The continuation of the remodeling of the resort which this year included:

a)  The new state of the art spa and salon located on the lower lobby level, where our guests can be pampered from head to toe with relaxing massages, pedicures, manicures and hair styling.

b)  The continuation of the room remodeling. Mr. Luce stated that at this time, approximately 1/3 of the rooms have already been completed. Depending on the occupancy rates going forward, he hopes that the rest of the rooms can be completed by the end of 2010, but acknowledged that this may be unrealistic as we are coming into some heavy seasons.

3.  The continuing popularity of the activities offered at Kitchen 305, our signature restaurant, such as musical acts, comedy shows, fashion shows, karaoke night and all you can eat nights. There is something to appeal to everyone.

4.  A reminder that the Newport has been a non-smoking facility since 2007 which has been met with widespread approval by all guests alike.

5.  An update on the Pier which has been closed since Hurricane Wilma in 2005. It was explained that the rebuilding of the pier had been tied up in government red tape, but that things are slowly coming along. There still is no timeframe for its reopening.

6.  The new and improved business center featuring new equipment helps our guests stay in touch with loved ones, catch up on e-mails and print out boarding passes. It was also pointed out that wireless internet is offered throughout the building and is free to all guests.

7.  The continuing popularity of our social activities on the pool deck with appeal to both children and their parents.

8.  The resort has entered into an agreement to serve Starbucks coffee in our coffee shop.

The next order of business was the election of Officers to serve through 2011. Ray Nyhuis noted that the only names received for consideration to the Board were the current members, Martha Sam, Ray Nyhuis and Raquel Valusek. He asked if there were any other members present that wished to be considered for the Board. There being no other nominations from the floor, Mr. Gnatt, acting Secretary, advised all in attendance that no election would be necessary since there were 3 nominees for 3 Board positions, and that the same Directors would continue on for the 2010-2011 year.

The floor was opened to any questions the owners might have:

1.  A question was raised as to the timeframe of the room renovations. Again, it was explained that although it is hoped that all rooms will be completed by year end, we also have to keep in mind that we can only renovate rooms when they are unoccupied. It is hoped that if the balance of the rooms can’t be completed by year end, that a majority of them will be completed.

2.  A question on the allocation of expenses, especially salaries, was raised. It was explained that the resort operates on a 24 hour schedule, and that insurance on a beachfront property are higher than the other hotels.

3.  An owner asked what would happen if the bad debts keep going up. Dr. Cornfeld, owner of the management company explained that we are lucky that this resort operates as both a timeshare and a hotel, so he can recoup the monies he pays to the Association to cover the delinquent owners by renting out the units. He added that in the future, there is no guaranty that he will be able to cover the entire bad debt expense, and that the shortage would have to be covered by all other timeshare owners.

4.  The last question involved our relationship with Westgate Resorts. It was explained that we have no legal relationship with them.

There being no new business to discuss, Ray Nyhuis made a motion to adjourn the meeting. Motion seconded by Martha Sam. Meeting adjourned at 11:50 a.m.

Respectfully submitted:

Howard T. Gnatt April 6, 2010

Acting Secretary Date