STATE OF MICHIGAN

                  27TH CIRCUIT COURT - FAMILY DIVISION

In the Matter of,

ALYSSA AND AMBER KEAST                       File No.  06-505-AF and   

                                                        06-506-AF

__________________________/

                               TRANSCRIPT

                      SECTION 45 HEARING - VOLUME I

       BEFORE THE HONORABLE TERRENCE R. THOMAS, FAMILY COURT JUDGE

             White Cloud, Michigan - Wednesday, May 23, 2007

APPEARANCES:

Attorney for the minor           MS. CHRISTINE FRISBIE, P46672

     Children:                   1206 East James Street

                                 White Cloud, Michigan 49349

                                 231) 689-0600

Attorney for Tim & Barbara       MS. SHON A. COOK P51452

     Atwood:                     120 West Apple Avenue

                                 Muskegon, Michigan 49443

                                 (231) 726-4857

Attorney for Nicole Coppess:     MR. SCOTT SHERLUND; P54861

                                 80 Ottawa Avenue; NW, Suite 301                                                                                                             

                                 Grand Rapids, Michigan 49503

                                 (616) 774-3020

Attorneys for the State:         MS.MARIBETH ANNE DICKERSON, 68975

                                 MR. JOEL D. MCGORMLEY, P60211

                                 525 West Ottawa Street

                                 Lansing, Michigan 48909

                                 (517) 373-7700

RECORDER BY:                     Marylin J. Hall  CER  6579

                                 CERTIFIED ELECTRONIC RECORDER

                                 (213) 689-7275

                         1.                                     

                            TABLE OF CONTENTS

WITNESSES:

TIM   TIM ATWOOD

Direct Examination by Ms. Cook

Cross-Examination by Ms. Dickerson

Cross-Examination by Mr. Sherlund

Re-Direct Examination by Ms. Cook

EXHIBITS:

                         2.

            White Cloud, Michigan

            Wednesday, May 23, 2007 - beginning at 2:32 p.m.

             THE COURT: The Court has conducted a status

conference in chambers. Essentially who was present, Scott

Sherlund, Shon Cook, Meribeth Anne Dickerson, Joel McGormley,

William Johnson, Curt Slatina, and Christine Frisbie. Have I

missed anybody? The discussion had to do with the Court's

request and understanding of the proceedings that are going to

take place from this point on. It did not really deal with the

45 hearing, which we're here today about. As a matter of fact I

don't remember any discussions concerning that. The Court talked

about possible settlements, and also raised essentially what it

considered to be some of the issues and the timelines, and the

expenses that this case could involve down the line. During that

Ms. Cook objected to the presence of Mr. Johnson, Mr. Johnson did

excuse himself from the room. One of the legal issues that did

come up had to do with the Court's reading o.f MCL 710. 43, as to

whether the consent to the petition of adoption also required in

addition to the agency, in this case the Atwood proceeding, the

MCI Director's consent and whether that also required the Court's

consent as well or whether it was optional. But generally the

Court essentially indicated its position in the matter, which is

really a matter of public record in this case that it thought

public policy of the State dictated that the family got first

shot at adoption. Not to indicate that either of the parties

                         3.