Dear owner:

The reason of this letter is to inform to you the agreements taken in the day of today in the Ordinary General Meeting of the Community of Owners Resid. DREAM HILLS of PLAYAS DE ORIHUELA (ALICANTE).

ENCLOSED DOCUMENTS

RECORD OF MINUTES OF THE MEETING (PRESIDENT’S REPORT)
LIST OF DEBTORS ON THE DAY OF TODAY
BUDGET AND QUOTES TO PAY IN THE FINANCIAL YEAR 04-05

With any more at the moment and with the trust that this information is interesting for you, I stay to your disposal,

Faithfully,

Signed: Ana Rosa Maeso Navarro

COMMUNITY OF OWNERS

Resd. DREAM HILLS

ACT 2

Torrevieja, MAY 26TH 2004

Minutes of the Ordinary Meeting of the Community of Owners Resd. DREAM HILLS held in second assembly at 16 hours 30mins on the above date in the Restaurant Punta Prima, in which the following owners were present or represented:

PRESENTS

Nº 15 Dña. ANITA HIPKISS
Nº 17 D. DOUGLAS HUNT
Nº 18 Dña. LESLIE ELLIS
Nº 22 Dña. KAREN ROSEMARY PRATT
Nº 26 D. JOHN WILLIAMS
Nº 32 D. PETER CRESSWELL
Nº 33 D. GAVIN WILLIAM WAITE
Nº 36 D. PAUL KEVIN BIRDSALL
Nº 42 D. PETER KIRK
Nº 49 D. ROY CHESHIRE
Nº 58 D. DAVID E. CALLIGHAM-WOODS
Nº 70 D. ROGER JOHN HUDSON
Nº 76 D. RONALD STIMPSON
Nº 84 Dña. MARIE CHRISTINE SMITH
Nº 86 D. RODNEY NUTTAL
Nº 90 D. ANTHONY DIGNAM
Nº 96 D. GEORGE CHARLES WINCH
Nº 101 D. IAN GERALD ANDERSON
Nº 133 D. COLIN JOSEPH BINGHAM
Nº 146 D. MICHAEL BARTHOLOMEW
Nº 170 D. PETER EDWARD BROOKS
Nº 178 D. PETER FAWCETT
Nº 184 D. MANUEL FERNANDEZ DIAZ
Nº 194 D. THOMAS PETER ROBERTS
Nº 198 D. JEFFREY RENNISON
Nº 206 D. GRANVILLE ANNABLE
Nº 207 D. RICHARD TONE RICHARDSON
Nº 210 D.MICHAEL JHON RUDKIN
Nº 217 D. MICHAEL ANTHONY FARMER
Nº 226 D. FRANCIS FEELY
Nº 230 D. EIFION LLOYD DAVIES
Nº 231D. JHON ERNEST CHURCHILL
Nº 237 D. JHON MICHAEL HOLLANDS
Nº 243 D. CHRITOPHER BAYFORD
Nº 256 D. MORRIS TORRANCE
Nº 257 D, ANTHONY JAMES SENIOR
Nº 263 D. HUGH PARSONS
Nº 265 Dña. LAURA KIEFF-SOFTNESS
Nº 266 D. J. T. JAMES ANDREWS
Nº 269 D. ROBERT HARRIS
Nº 270 D. SHAYNE MICHAEL HEANEY
Nº 272 D.LIONEL HICKEY
Nº 285 D. PAUL SPENCER
Nº 290 D. GLEN PETER GRIFFITHS
Nº 293 D. JON MICHAEL BASTON
Nº 294 D. DAVID WHITE
Nº 300 D. BRIAN FARR
Nº 301 D. PETER HAYWRAD
Nº 303 D. MICHAEL ROGER SIMS
Nº 305 D. DAVID JOHN WOODCOCK
Nº 306 D. ANDREW GINLEY
Nº 309 Dña. MARGARET D. CHURCH
Nº 310 D. ANTHONY J. CHAPMAN
Nº 311 D. ROGER INGRAM
Nº 314 D. THOMAS DALGLEISH
Nº 315 Dña. ANNIE J.RIZZUTO
Nº 324 D. IAN WAGGOTT
Nº 327 D. GERARD MCINTYRE
Nº 331 D. RAYMOND ALBONES
Nº 334 D. ANTHONY SCRIVENS
Nº 340 D. STEPHEN JOHN HAYNES
Nº 345 D. DANIEL KEVIN MC. CAUL
Nº 353 D. MICHAEL FRANCIS JAMES
Nº 356 D. ALAN ERIC HARDS
Nº 374 D. FREDERICK CORK
Nº 390 D. RICHARD FLISHER
Nº 394 D. DONALD LESLIE MARTÍN
Nº 403 D. DAVID BAXTER
Nº 405 D. TONYKETTLEWELL
Nº 406 Dña. SUE KENDAL
Nº 408 D. JOHN WILLIAM DALTON
Nº 410 D. SAMUEL ERNST DENTON
Nº 413 D. PAULL RICH
Nº 418 D. HOWARD COUCHMAN
Nº 424 D. JEAN MAY EDWARDS
Nº 430 D. JOHN KNOWLES
Nº 431 D. GRAHAM E. HART-CHAMPION
Nº 436 D. LEONARD ARTHUR LONG
Nº 441 D. BRIAN WELSH
Nº 448 D. ROBIN JACKSON
Nº 451 Dña. BRENDA JANE ARGENT
Nº 454 D. JOHN VICTOR BRISTON
Nº 456 D. DILWYN WELCHMAN
Nº 458 D. DAVID AYTON
Nº 474 D. MICHAEL O`HARA
Nº 476 D. FERNANDO GONZALEZ
Nº 477 D. JACOB ROBERTS
Nº 479 D. ROMAN KOWALSKI
Nº 481 D. DAVID IAN SOWKHEE
Nº 491 D. AUD BAADSTRAND SKARE
Nº 494 Sra. DUMMER
Nº 512 Dña. JULIE REAKES EWING
Nº 515 D. MALCOM HOUGH
Nº 519 D. ALEXANDER L. MCALLISTER
Nº 524 D. UDO KOWAALCZYA
Nº 526 D. EDWARD WOODING
Nº 529 Dña. ANNETTE BURLING
Nº 535 D. ERIC BROOKES
Nº 540 D. KEITH WOODHOUSE
Nº 545 Dña. MAGNHILD SALBU
Nº 554 D. GERALD A. OKSTAIN
Nº 557 D. STEFAN POKROPPA
Nº 558 D. JOSEPH ASPELL
Nº 559 D. ARTHUR WILLIAM ANDREWS
Nº 561 D. CLIFORD RIDGE
Nº 562 Dña. PAT ROBINSON FARNABY
Nº 567 Dña. COLIN SIMPSON
Nº 571 D. WILLIAM HARRY ALLEN
Nº 580 D. DAVID ARTHUR WALKER
Nº 582 Dña. JENNIFER ANN HOMER
Nº 584 D. WILLIAM MCKINSTRY
Nº 586 D. MICHAEL PATRICK CLIFFORD
Nº 848 Dña. JANET JORDAN
Nº 850 D. DALJITDINGH BIRK
Nº 851 D. CLIVE SIMS
Nº 853 D. KIERON EDWARDS SEEDS
Nº 854 D. JON AARSTAD
Nº 858 D. TREVOR HAROLD PHILLLIPS
Nº 859 D. CHRISTOPHER MC. NARY
Nº 861 D. JONATHAN COLLINS
Nº 862 D. NEIL ROY KENDALL
Nº 879 D. ANTHONY HANDS
Nº 880 D. DAVID CALLAND

REPRESENTADOS
Nº 5 Dña. LINDA BROOKS
Nº 20 D. JOHN GERARD NEARY
Nº 23 D. SVEIN HAHR
Nº 74 D. MICHAEL DAVID FORD
Nº 77 D. KENNETH FRANN FIGG
Nº 79 D. ROGER WIGGLESWORTH
Nº 80 D. ALFRED LITTLECHILD
Nº 81 D. RICHARD HENRY NORRIS
Nº 82 D. HYMWEL MORGAN
Nº 87 D. SEAN O’ KEEFE
Nº 97 D. PETER JOHN TUFFEE
Nº 99 D. DAVID HOLLINGDALE
Nº 121 D. JOHN ROY GILLISHAN
Nº 130 D. DEREK JOHN KEOGH
Nº 144 D. TERENCE RADER
Nº 151 Dña. ANNE HENNESSEY
Nº 169 D. BRIAN JOHN THOMAS
Nº 175 D. MICHAEL ROBERT DUNCAN
Nº 176 D. MALCOM MC. KAY
Nº 197 D. ROGER FRANCOIS OTÓN
Nº 205 D. STEPHEN J. VICENT RICHARDS
Nº 236 D. BJORN KARE SOLBERG
Nº 238 D. DAVID JOHN BROWN
Nº 253 D. JOHN CHARLES DAVIES
Nº 262 D KEITH DAVISON MONK
Nº 291D. STEPHEN HOWARD HALETECK
Nº 307 D. PAUL MASON
Nº 313 D. MICHAEL RICHARD GINGELL
Nº 321 D. TREVOR ALBERT STUART
Nº 333 D.PETER WILLIAM WIGNALL
Nº 341 D. DAVID GREENLAND
Nº 355 D. STEWART HAWSWORTH
Nº 390 D. RICHARD FLISHER
Nº 397 D. MICHAEL JOSEPH O REILLY
Nº 407 D. GARY LAURENCE RUSSELL
Nº 417 D. WILLIAM WARRENDER
Nº 459 D. TREVOR PLATT
Nº 486 D. WILLIAM HOHN HUDSON
Nº 490 D. SIGTHOR SIGURJONSSON
Nº 495 D. JOHN KERR
Nº 498 D. THOMAS COURAGE
Nº 503 D. NEIL ANDREW SHARDLOW
Nº 513 D. ALAN JOHN GEORGE BROW
Nº 525 D. COLIN JOHN ARCH
Nº 530 D. ROBERT YOUNG
Nº 539 D. ASBJORN WILLY HORNE
Nº 543D. AXEL ZORN
Nº 560 D. HEINZ PETER WIELAND
Nº 572 D. FRANCIS BARRY HUMPHIES
Nº 576 Dña. EDITH ELIZABETH M. DIXON
Nº 583 D. RICHARD SILVESTRE
Nº 884 D. MELVYN GEORGE BETTELL

ORDER OF THE DAY

1º APPROVAL OF THE MINUTES OF THE PREVIOUS MEETING. REPORT OF THE PRESIDENT.

The meeting began by informing all those present that the Community is legally constituted with its registered official-book of Minutes and with its corresponding Fiscal Identification (N.I.F.) number. With respect to the Minutes of the previous Meeting, having received no objections in the established time limit, they were unanimously approved, being already entered and signed in the book of Minutes, therefore complying with the Law of Horizontal Property.

The President Mr STEFAN POKROPPA had prepared a full report about the Community during the last year: the problems, the achievements, etc, and proceeded to outline these, a summary of which is included in the present minutes.

2º READING AND APPROVAL, OR OTHERWISE, OF THE FINANCIAL REPORT OF THE ECONOMIC YEAR 03-04. DEBTORS AND FOLLOWING ACTIONS. EXPOSITION AND APPROVAL IF AGREED ABOUT THE PROPOSAL OF REMUNERATION TO THE PRESIDENT.

Enclosed with the invitation to attend the AGM, the Financial Report for the financial year 03-04 was sent, as well as details of debtors at 20th April 04, and that on the date of the AGM, it was modified to bring it up to date with the remaining outstanding debt being //7.681,06// Euros. However, of this, 867,64 Euros was to the debt of Torrevisa because of the difference between the dates from the completion of various houses and the purchase on the part of the owners (i.e.the signing of the Escritura). And the amount of 6.813,43 Euros was still outstanding because of non payment by owners since the date of purchase.

A Financial review and explanation of income and expenditure was given, and after questions, the expenses were approved unanimously. Owners were informed that the invoices pertaining to those expenses, are available for inspection. Likewise, it was also pointed out that all the payments of the Community have been carried out only with the required authorised signatories of both the President and Administrator.
Regarding the debtors, it was approved that those with outstanding community charges as of of today, May 26th 04, and agreed by a majority of those present, with three votes against, to present Judicial reclamation of outstanding community charges to all those that figure in the cited list, with effect from September 1st 2004, plus a claim for all the expenses (Judicial or Out-of-court) that such reclamation entails. Authorization was given to the President and/or Administrator to start such legal actions according to Article 21 of the in force Law of Horizontal Property.

We were pleased to inform all the owners that due to the placement of telephone-boxes in the communal zones of the Urbanization, the Community received a percentage of the income as a rebate. There are telephone-boxes of 2 different companies, who have estimated the total income from collection because they pay according to their own financial year , nevertheless, from one of them, an income of 1.847 Euros is anticipated for the next month of June and the other company will certify in the month of July. By then they will know their turnover. This therefore anticipates an extraordinary income for the Community that will be reflected in the next financial years accounts.

Mr ROGER HUDSON, owner of the dwelling nº 70, as a member of the board, having observed the numerous requirements for efficient management that are necessary for the correct operation and smooth administration of the running of the Urbanisation, together with the great demands of time placed on the President, outlined these in greater detail to the meeting. The meetings with the Administrator, as well as with all the different agencies is facilitated to the benefit of all owners by the fact that he speaks three languages. It was proposed that those skills, time demands, and interruptions to his private life be compensated for by a form of remuneration. This was seconded and approved by the majority with two votes against. A further proposal of 10 Euros by dwelling per year was submitted to voting, being approved by a majority of those present and represented with two votes against.

3º RENEWAL OF CHARGES (BOARD OF THE COMMUNITY)

The board, at present, is constituted of:
PRESIDENT Mr STEFAN POKROPPA Nº 557
VICE-PRESIDENTS:
Mr WILLIAM HARRY ALLEN Nº 571
Ms MAGS HARRIS Nº 269
Mr ROGER HUDSON Nº 70
SECRETARY Ms KATH ALLEN

Mr MICHAEL ANTHONY FARMER Nº 217 & Mr JOHN KERR Nº 495 aren’t willing to continue in their capacity as Board members. For this, volunteers were requested to cover these vacancies, and the following candidates were presented :
Mr GERARD MCINTYRE Nº 327
Ms LINDA SIMS Nº 303
Mr CHRISTOPHER MC NARY Nº 859
Mr PETER CHARLES HEMMING Nº 833
Mr CHRISTINE BINGHAM Nº 133
EACH CANDIDATE WAS NOMINATED AND SECONDED, and each was unanimously approved by those present. These, and existing members will constitute the board for the financial year 04-05
The Meeting was consulted about the renewal of the Administrator's contract which was unanimously approved. Therefore, the renewal of the charge is approved in favour of the company A. INVERSIONES TORREVIEJA S.L., represented by Ana Rosa Maeso Navarro for the financial year 04-05

FINANCIAL PROJECTION BY THE BOARD OF THE COMMUNITY OF OWNERS RESD. DREAM HILLS FOR THE FINANCIAL YEAR 2004-05 (JUNE 04-MAY 05)

4º EXPOSITION AND DECISIONS ON THE FOLLOWING POINTS:

A) REPAIR AND REINSTATEMENT OF COTEGRAN (PEBBLE DASH) OF THE WALLS OF THE SWIMMING-POOLS
It was pointed out that the title of this paragraph in the Agenda could have been slightly misleading. (This may have been a translation error.) It isn’t a matter of repairing the walls, but of improving its covering with cotegran (pebble dash). This product would significantly improve the quality thus making it unnecessary for the periodic, and expensive, painting of the surrounding exterior walls of the pools. After much negotiation with Torrevisa, we arrived at the following agreement: The Community would pay the cost of the material at a price of 3.000 Euros and Torrevisa would supply the labour without cost. The proposal was submitted to voting, and approved by majority with 3 votes against.

B) READING OF THE BUDGET TO THE CHANGE OF FENCES AROUND THE SWIMMING-POOLS.
During this year, there were numerous occasions when several people have entered the swimming-pools during the periods when they are normally closed to residents. At the same time causing vandalism to the present fences and other destructive acts. As a result of this, a change to all the netting/wire fencing of the swimming-pools was proposed. This would be a much stronger fence which, by design, impedes the easy access to the interior of the pool area. The quote and budget for this is, 13.600 Euros.

It was submitted to voting, the work being approved unanimously.

C) READING OF THE BUDGET FOR THE SECURITY-GUARD IN THE MONTHS OF JULY AND AUGUST
The idea of the need for a security-guard to protect the communal zones during the months of July and August was presented to the meeting. This would have a price of 3.200 Euros. After different considerations, a vote was taken in which the proposal was rejected by the majority with three votes in favour.

MAINTENANCE OF “LA CASITA”.
As all know, “La Casita” (the little House) has been built by Torrevisa and delivered to the Community last Easter. This was undertaken free of charge by Torrevisa. It is for Community use, with the idea of having a place for meetings and activities of the Board, and Neighbourhood Watch. In addition it will be the central area and notice-board for the Community. The Committee has purchased some furniture, and there is a small, neat kitchen. There are plans to supply a refrigerator. We had received an offer from Mrs. JULIE REAKES, owner of the dwelling 512, that meant that she would have taken charge of the cleaning and of the maintenance of the lavatories. The idea was that La Casita would have been open every day from 11h to 14 h and of 16 h to 20h in exchange for a small remuneration and the authorization to sell refreshments and ice creams in order not to cost the community too much by offsetting the total cost. After different deliberations and comments, various owners considered that the centre cannot be utilized for private benefit. A voting was carried out in order to determine if “La Casita” should be opened to all the owners or, at the present time, reserved only for use by the Board. (And NHW) By a majority, it was agreed to reserve “La Casita” for use of the Board with 15 votes in favour of opening it for the use of all the owners.

D) CLIMATIZATION (HEATING) OF SWIMMING-POOL (TOP) AND FINNISH-SAUNA (BOTTOM POOL)
Budgets for these installations were requested and given as follows:
CLIMATIZATION (HEATING)OF SWIMMING-POOL with canvas covers that maintain the heat and 3 electric elements, 49.200 Euros plus V.A.T.
FINNISH-SAUNA that would be built in the zone of the bottom pool: A price of 12.530 Euros plus V.A.T.
After voting, neither proposal was approved by a unanimous vote against.

5º READING AND APPROVAL OF THE ANNUAL BUDGET OF INCOME AND EXPENSES FOR THE FINANCIAL YEAR 04-05. APPROVAL OF THE INCREMENT OF 1, 5% PENALTY FOR DELAY ON THE RECEIPT OF COMMUNITY CHARGES EACH MONTH OUTSTANDING.

After a study of the expenses made during this financial year, and of the works that were mentioned in previous points,, a budget for the financial year has been made from the Administration and it amounts to a total of 97.764,16 Euros, with annual quotas by dwelling of 147,68 Euros (73,84 Euros each six-months). The presented budget was submitted to voting, being approved by the majority with ten votes against. The charges will be put to collection from the next 1st of June with the quotes here approved and corresponding to the 1st Semester of the financial year 04-05 (June 04-November 04). The 2nd semester will be put to collection on December 1st 2004 pertaining to the months of December 04-May 05.

In order to penalise the delay in the payment of community charges by individuals, is was proposed to increase the pending outstanding debts with 1. 5% monthly interest from the first month of its due date. The proposal was submitted to voting, being approved unanimously. As this agreement has been made in this financial year, in order for all owners to be aware of this, this penalty will n alizaciment r will be put aal favourbegin with the charge of the 2nd semester.
Example: The owners that have pending Community Charge payments on January 1st 2005, the total of the debt will be increased with the 1. 5% monthly, from February, until the total payment is made.

6º REQUESTS AND QUESTIONS.

Mr DONALD LESLIE MARTÍN (394) proposed that the letters of assembly to the AGM be sent with two months advance notice. It was pointed out from the Administration, that this isn’t problem, but that there would be a close to the accounting , one month before that which we have now and therefore would not be fully representative of the expenses of a complete financial year. At present, they are sent a month in advance. It was suggested that, as early as possible, we would indicate on the Internet on the Dream Hills website (www.dreamhills.co.uk), the date of the General Meeting.

Complains were presented about the parking of cars in the private streets, because, in cases of emergency they would hinder access. It was insisted upon that the owners that have gardens with access for their cars inside their property, do not leave them in the streets, but put them in their driveways in order to not impede access for others.

It was reported that the houses that compose the Urbanization DREAM HILLS, are exclusively for use as dwellings. They are not to be used in any way for any type of commercial activity.

Complains were presented about the state of some private gardens of dwellings. It was indicated that these are private zones to which, without authorization by the owner, we cannot access. Nevertheless it was proposed to list those that are in a bad state, and a letter would be sent from the Administration requesting tidyness.

It was proposed to request that Torrevisa, once phase 2 is finalized, (DH2?) that they maintain the walls that separate the two phases and situated in some of the streets. However, this will depend on the project of the urbanization approved by the Town-Hall.

A complaint was presented about the alleged inadequate cleaning service of the common streets. This can also be an accusation against those that abandon builders rubbish, or place materials outside private dwellings. It was demanded that cleaning service, if it does not comply with the required standards, have their contract reviewed.

The meeting was informed that the green zone situated next to the swimming-pool is for school use, and this will be determined by the Town-Hall of Orihuela, who will decide it's future.

There was reference to the construction of the commercial centre that will be situated next to both swimming-pools and called VIA PARK V. According to the plans, it was considered that the design and the height are considered excessive and out of keeping for a residential zone. In order to present complains to the Town-Hall of Orihuela-Costa, signatures are being collected that support the complaint and a request for it to be modified.

A member of the community requested that a letter on behalf of all residents who suffered damage to their property in the recent heavy storm should be sent from the Committe to Torrevisa. It was pointed out that private claims of work for each dwelling, should be directed to Torrevisa individually. The Committee are only responsible, on behalf of the community, for the common areas and facilities.

It was suggested that the cleaning of graffiti from the electricity switching and water control houses and cabinets on the main road may be neccessary.

A word of thanks was given on behalf of the owners to the President and to the Board for the management carried out for the benefit of the Community during this last financial year.

And with no more matters arising, the meeting closed at 19. 30 pm of the day of today of which as secretary I give faith.

Signed: Secretary-Administrator. Signed: President