Meeting was started at 9:05AM and called to order by Russ Minnick.

• 29 lots represented by those present; Russ Minnick, Dan Stanger, Roger Sanders in attendance
• Russ was only contacted by 5 lot owners for questions since last meeting
• Agenda for meeting:
• Welcome
• Questions & Answers
• Nominations
• Vote of Board Members
• Vote of CC&R’s (revision dated 9/7/01)
• Other

Russ stated that as of today, 9/22, no corporation exists; Lake Sans Souci CC&R’s are still in effect. Question is whether it is legal to have meeting because we’re no longer recognized as a non-profit corporation. Believes incorporation expired end of August.

Russ asked if meeting is official or not. Attorneys have differing opinions. Want to do it right/appropriately.

• Proposals:
• Adjourn and call another meeting at a later date
• Hold meeting, talk, discuss and adjourn until receive legal opinion and meet again
• "Get it going" by agreeing that we are just lot owners coming together to discuss and continue with Q&A, Nominations and meet at a later date
• Harold Pinkham and/or Larry Cunningham will register us as an Idaho corporation on Monday.

Questions:

Lakes/Forest:

Concern was raised that $500 per lot can be assessed without lot owners’ approval. Russ clarified that a special assessment is needed in case of emergency or "critical need" situations. It is a power that boards should and must have and strongly urged that it be kept in. Russ stated that as long as Declarant is still in control, special assessment must be approved by 2/3 votes.

Lakes/Forest:

Question was asked why Lot Owners can’t change document if Association owns one lot. Russ clarified that Association is NOT the Developer it is the individual NHOA Association.

Question was asked on status of paving and why the significant cost. Roger Sanders said Lakes road was paved in 1997 and paid for 100% by the lot owners. Costs have increased significantly. CDS is subsidizing $600 per lot. Per Dan Stanger, lot owners don’t have to pay, as CDS will not "go after them." Dan also stated that the paving of the Lakes roads was, in fact, illegal.

Russ reviewed next steps. We can

• Vote for adjustments to CC&R"S
• Assessments
• Nominate Board Members

As "not-for-profit" entity not legally recognized (expired), we can decide we are now a "group of owners" and we can do what we want. With a show of hands, majority voted to continue to meet as "group of lot owners."

Question was raised from the floor from an owner of 4 lots. He stated that he didn’t feel it was right to have to pay 4 assessments. Russ stated that it was already in the existing Lake Sans Souci CC&R’s and by buying the property he had already agreed to do that. Dan stated that they had several discussions on this and decided that if a lot owner legally combined their lots into one, the lot owner would only have to pay one assessment.

Question was raised on behalf of absentee homeowner (Fenske) on whether alcohol was being sold in the house next door to them. Russ and Dan stated that NO alcohol would be sold. They may have a small wine-tasting area; but for beer/drinks, etc., they would need to go to the golf clubhouse. He stated he would put it in writing if the homeowner wants it. Dan went on to say that eventually that house would be changed into a Bed & Breakfast.

Russ stated the meeting needed to move on. CC&R’s Proposal:

• Talk about CC&R’s, make changes, get incorporated with past board members and call another meeting. CDS will pay for copying and mailing of CC&R’s documents (master and subs) as well as board member nominations. Subsequent meeting would be open for more nominations from the floor.
• By show of hands, majority ruled to continue

At last meeting there was a discussion on whether the Board should be allowed to go into "Executive Session." Russ clarified the intent of Executive Session -privacy while discussing various CC&R/assessment issues/violations- and clarified that the discussion and result/decision would be in the minutes and available to anyone.

• By show of hands, majority ruled to leave in allowing "Executive Session."

Russ said that, as stated in a prior meeting, eventually there would be an area for storing of RV’s/Boats and showed its location on the map. However, he did state that it would be awhile before this was done. Assessment dues would NOT go to maintaining this area; it would be on a space rental basis. Russ also clarified that sub-associations can be more restrictive than master association. CDS chose to abstain from voting. They want the CC&R changes to be decided upon by the Lot Owners. A vote was taken on whether to leave in the statement allowing "storing", or deleting it and the results were as follows:

• Master: majority agreed to leave it in the master CC&R’s
• Lakes: Majority (14 to 10) agreed to delete it from CC&R’s
• Forest: Majority (7 to 4) agreed to delete it from CC&R’s

Question was raised from the floor on "what we’re doing" and Russ clarified that we’re voting on what goes in the document that will be for final vote at next meeting.

Russ stated that errors in the CC&R’s such as typos, etc. could be changed without a 2/3 vote. Law is based on intent.

Dan stated that we would soon be seeing a name change on their letterhead. CDS Investments (Chris and Dan Show) has been changed to Bridge Partners. Company Ownership names seen in the proposed CC&R documents would not change.

Master:

Trails, Recreation Center, Common Roads, Wetlands, Entries, Parks, ARC

NHOA:

Roads common only to the NHOA area and common areas within the NHOA

Question was raised on why there is a restriction on flags and what about American Flag. Russ stated that Federal and State law supersedes these documents. American and State flags can be flown if meet flag display guidelines. Other flags, signs need to be approved by the ARC.

If legal owner of lot or have a full golf membership, can use Rec. Center.

Asked that the statement be taken out that allows the Board to decide whether or not a meeting can be recorded. Change wording to "may" record.

• By show of hands majority ruled in favor of word change

Homeowner asked if CDS could charge more for a view lot if documents state that the view can be changed at any time. Russ stated YES, it could.

Russ stated that the golf course WILL participate in assessment, which is not required. They are paying for planned 400+ lots not the current 200.

Homeowner asked why Developer maintains control over the documents. Russ clarified that it affects the LEGAL descriptions of Master Association (the common areas not the NHOA). Does not impact sub-association but only as it effects Master.

Homeowner asked for plans of walls and definition of roads. Russ stated there are no plans for any perimeter walls. All roads are private. Master roads are roads that access other portions of the master or sub-association. Within the Forest, all roads are private. Lakes Assoc. has less road to maintain because of its access/proximity to golf course.

It was asked if property owners could vote on making the lake private.

• With a show of hands, majority voted to make the lake private.

Russ thought this would be difficult to do but CDS would be willing to help with signage and making the public aware of this change. One homeowner proposed that the lake be made private for everyone except for the end lot by the entrance. Keep this open to the public. A homeowner who would be directly affected vehemently opposed this.

Lot owner asked why restricted to two persons per bedroom. Russ said this can be an issue and has been in other developments. They have had instances where they had 30 people living in 1000 square feet of space. Occupancy Standards say two plus 1 per bedroom. Anyone under one year of age is not considered an occupant. Attendees did not ask for a vote to change this item.

Homeowner asked why must have insurance. Russ stated it was there to protect the Board and the Master Association from lawsuit . Example: a homeowner burns down his home and his neighbor’s home and didn’t have insurance. Could not come back to Board or Master for coverage.

This affects Association insurance claims. If there is damage and the insurance pays to fix/rebuild and the actual costs are less than the insurance payment, then the difference is placed in the Reserve Account. This does not have anything to do with private homeowner insurance claims.

The Clubhouse referred to in this item does NOT mean Golf clubhouse. It refers to the Recreation Center.

Comment was raised that throughout the document it refers to alphanumeric exhibits but only numeric attachments were included. Exhibits/attachments need to be clarified within the documents.

There being no further CC&R questions, continued to next agenda item:

Since Harold Pinkham and Larry Cunningham are past board members, they need to register the corporation on Monday. "Pink" and Larry agreed to sign the letter/documentation prepared by CDS to all lot owners regarding the next meeting and accompanying documentation (CC&R’s/Ballots). Pink and Larry will need to "run" the next meeting. However, this can be done by calling the meeting to order and turning it over to Russ.

Board Member nominees need to send to Mary a short Bio (maximum 3 lines) and include Name, Lot and why nominee feels they can help.

With a suggestion from the floor and agreement by all those present, Master association Board will have 7 members rather than 5 originally suggested.

All ballots are to be sent to Pinkham rather than to CDS. Can vote by mail. Can cast all your votes (if multi-lot owner) for one candidate.

Next meeting the lot owners will vote for Board Members and CC&R’s. Need to have 66% of lot owners accept documents. Ballot for board members is only a courtesy. Don’t have to do it but their ballots will be counted.

Next meeting is Monday, October 15 at 7PM in the Pro Shop.