From The Law Offices of Jeanne McDonald

July 23, 2009

Re: Annual Election Results

Dear Homeowner:

This letter is to convey the results of Cabrini Villas' recent election. As you know, the ballots were tallied at an open board meeting held on Tuesday, August 25, 2009. According to Cabrini's Bylaws, quorum for an election is a majority of all owners. If less than half of the Cabrini owners return their ballots, quorum is not met and the election is not valid. However, the owners who do return ballots can vote to extend the due date to return ballots and reduce the quorum from a majority to 25% of the owners. This votes was printed on the envelopes distributed with the ballots.

Only 309 were returned by the deadline, so quorum was not met. The persons counting the ballots (members of Cabrini's Election Committee) did not open the ballots, but they counted the vote whether to extend the deadline and reduce quorum. Over half of the ballots returned - 155 ballots - needed to be marked "approve" for the extension and reduced quorum to take effect, but only 133 ballots were marked "approve". Therefore, the vote did not pass. The deadline to return ballots has not been extended, quorum remained at a majority of all Cabrini owners, quorum was not met, and the election failed. The existing Board will stay in place for another year, until next year's election. This is in compliance with California statute, which states that directors' terms last until expiration of their term and until their successors are elected and qualified.

If you have any questions, please contact the Cabrini management office and not this firm.

Sincerely,

Jeanne H. McDonald