LOST SPRINGS PROPERTY OWNERS ASSOCIATION

LSR WATER SUPPLY CORPORATION

POBOX 1404

WIMBERLEY, TEXAS78676

NOMINATING COMMITTEE REPORT

April 7, 2011

To:Lot Owners

From:Lost Springs POA and LSR Water Supply Corporation Nominating Committee

The agendas for the April 30, 2011 annual meetings of the Lost Springs Property Owners Association and the LSR Water Supply Corporation will include elections for three (3) director positions. There are five individuals who serve on the POA and LSR Boards as Directors. Since the business affairs of the POA and LSR Water Supply Corporation are intermingled, the same five individuals traditionally serve on both boards. This helps to minimize the volunteer time spent and maximize the results by streamlining the communications processes.

The responsibilities of a director include conducting the business of the association and the corporation according to the bylaws and subdivision restrictions. Attendance at the annual meetings, scheduled board meetings and called or special meetings is expected per the requirements of the bylaws. One mandatory requirement for serving as a director (and also a committee member) is to be current on the payment of all POA annual dues (including interest if due) and LSR membership fees and capital improvement fees.

The terms of Susan Evans and John Kimbrew expire this year. Steve Stanley moved last year and a permanent replacement for his remaining 1 year term will also be elected. The Nominating Committee has nominated Joe Dodson, Matt Avery and Boyd Merworth as directors. If any owner knows of another candidate who is interested in serving as a director for both boards and wishes to have his or her name added to the ballot, the name of such person can be submitted to the Nominating Committee prior to April 30. As usual, nominations will also be accepted from the floor at the annual meetings.

The term of a director is 3 years. The terms are staggered as the bylaws require. The other directors currently serving will have the following time left on their terms after our meetings on April 30:

POA Term / LSR Water Term
Mike Tibbets / 2 years / 2 years
David Wright / 2 years / 2 years

Please notify one of us by mail (to the address above), by email (to one of the addresses shown below) or telephone with the name(s) of any lot owner(s) you wish to place in nomination as a director for both boards. Also, please let us know if you have any questions regarding the election process.

Thank you,

Mike Tibbets, / Carl Evans / Bob Lunny
713-667-2477 / 512-847-0188
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