To: Princeton Lakes Board of Directors

Date: 4/12/01

Subject: Meeting Minutes of 3/05/2001

From: Alan Myrick – Princeton Lakes Secretary

Meeting called to order.

All Directors in attendance.

Old Business

Park Access Lots

Wording of CC&R’s, ByLaws and Lake Use rules
Intent of LSF Development regarding water usage by Park Access owners

Tim Gilker made opening statement, which is paraphrased here.

During past week, Tim spoke with friend on the wording in the CC&R’s. This individual is now retired but has significant experience in the real estate industry. Tim asked this individual to comment on the specific sections noted below since those appear to have a conflict of wording.

Master CC&R’s – page 3, section 19 on Park Access Lots

Supplemental CC&R’s – page 17, section 8 on Rules and Regulations

Also Master CC&R’s – page 14, section 1 on Annexation of Additional Property

Tim’s friend indicated the CC&R’s do provide for future annexation of additional property and may not necessarily restrict additional Park Access Lots. In addition, CC&R’s provide for Park Access owners to act as guests of Water Access owners with the additional privilege of “limited ski rights”. CC&R’s also state that Park Access owners have equal voting rights on all issues. Tim did speak with Gordon Hall and Richard Myers and specifically asked Gordon of his intentions. Gordon did confirm it was his intent to allow Park Access lots to retain “limited ski rights”.

At this time, Tim indicated a need for unity in the Board and the Association with a suggested Goal to “Identify new wording for CC&R’s and Bylaws in order to protect Water Access lot owners. Lake Use rules should additionally be drafted and inserted into Bylaws.” All Directors voted ‘yes’ on this motion.

A suggestion was made to outline the next major steps as follows:

Develop revision to Bylaws to protect Water Access lot owners
Meet with LSF Development to suggest amended CC&R’s to reflect a “safer” position for Water Access owners.
If LSF is supportive then the change in CC&R’s would protect Association and the issue is closed.
If LSF is unsupportive, then the Bylaws would again be reviewed for additional changes.
Next the Bylaws would be formally incorporated into the Association and any necessary recordation would occur.

Princeton Board 3/05/01 mtg. pg. 2

Bylaw amendments:

Board of Directors will be comprised of a 2/3 majority(minimum) of Water Access lot owners. This protects the most valuable properties from being reduced in value due to a different agenda by future Boards of Directors.

Sven Hallermann asked what does initial creation of Bylaws mean to future generations of Board? The consensus was that the Bylaws can be amended at any time.

Robin Trickel requested the Board create “mechanics of voting” for Board replacements. This need was acknowledged by the Board members and would be addressed in the final revision.

The Board agreed the Lake Use rules be included in the Bylaws as Article 17 to consolidate the number of governing documents existent in the Association.

Additional proposals to amend the Bylaws:

Restrict Park Access owners ski privileges

Regulate all guest usage
Charge for certification sticker on boat
Park Access owners would always be subordinate to Water Access owners in usage of lakes.
Restrict boat placement on lakes and mandate only day use of boats.
Invoke annual fee to Park Access owners to use the lakes unrestricted - $10K per year?

Richard Myers stated the Board could be creating a situation where future / present owners could question the validity/legality of such restrictions / charges.

Tim Gilker stated the voting privileges are indicated in the CC&R’s – Class of lots are generated and maintained by formula. See Master CC&R’s – page 12, section 3 on Voting Rights

Alan Myrick suggested, in the interest of time, the Board immediately move to begin a specific proposal for rewording the Bylaws/Lake Use rules. Motion seconded and carried.

Proposal

Boat sticker fee (any boat used by Park Access owner) be imposed.
$3500 fee be adopted as “Park Access Non-sponsor privilege”
Park Access owners are subordinate to Water Access lot owners when greater than one(1) Water Access owner is in ski rotation on any lake.
Park Access owners are subordinate when ever they are using separate rotation. If the Park Access owner is skiing as the guest of a Water Access owner and sharing one rotation, then a subordinate situation does not occur.
The fee suggested above would be reviewed each year in January.
The guest policy of the Lake Use rules indicate any one guest may ski up to a maximum of four(4) times per month. For the purposes of this rule, four(4) times per month is meant to allow a maximum of four(4) calendar days per month and that each day is defined as sun-up to sun-down.

Tim Gilker suggested the following changes be made and approved to the Bylaws previously submitted by Gordon Hall as a draft for consideration:

Princeton Board 3/05/01 mtg. pg. 3

Change the address on page 1 to reflect the address of the Princeton Lake POA.
The Board of Directors must always be comprised of a minimum of 2/3 Water Access lot owners. Today that would require 4/5 Directors be Water Access lot owners.
A Quorum of the Board of Directors will only be met with 100% of Board members present.
In addition, the Proposal numbered 1 – 6 above be incorporated.

This allows for some version of the Bylaws to be approved prior to a scheduled meeting with Gordon Hall of LSF Development on 3/7/01.

The Board was unable to gain the necessary approval for the suggested changes above and no draft of the Bylaws was approved.

President’s Report

No report

V.P. and Architectural Control Committee Report

No Report

Secretaries Report

No Report

Treasurer’s Report

No Report

Lake Operations Report

No Report

At this time a motion was made to adjourn the meeting. The motion was seconded and carried.