Signant Two Holdings Ltd.

Minutes, 2006 Annual General Meeting

September 20, 2006

At Vic’s house

Present: Sharyn, Vic, Duane, Sheila and Jennifer

1. Meeting called to order at 8:15 PM.

2. Minutes of previous meeting (2002) not available.

3. No matters arising from minutes.

4. Proposed Easter work bee (2′ d week of April)

Members of Sharyn’s family (Jen and Michael) and, possibly, Sheila, are planning to go out. The following projects/tasks were discussed:

a. Using truck and trailer, gather up “junk/clutter” and make several runs to the dump. (This includes cleaning out closets.) In conjunction with this clean up, ask Dale to explore, prior to Easter, possibility of donating bigger items somewhere in Vernon (e.g. organ, old bathtub under cabin, old bicycles, etc…)

b. Take down netting covering beam in middle bedroom. (Unsightly with dead ants.)

c. Boat should be decommissioned. Ask Michael to get boat out of boathouse and up to the road. Ask Dale to advertise boat prior to Easter in Vernon “Bargain Finder” as a give-away. Group who is out at Easter will put signs up on community boards at La Casa, Killiney, Valley of the Sun and Fintry.

d. Proposed that it is time to get rid of Dad’s truck. Ask Dale to find out if we could donate Dad’s truck to the Kidney Foundation (like you can do in Calgary). If so, would they come out to the cabin and tow the truck?

e. See #7 below, “Cabin Upgrades,” for other possible projects.

f. Some discussion about whether we should get rid of the camper. Roof is leaking some. No decision arrived at for now. The camper is used by some families when there are several people at the cabin at once. As families continue to grow, there is a need and will continue to be a growing need for more accommodation. It was reiterated that the boathouse could be developed, including an upper floor if walls with renovated to include proper joists. Another possibility, stated previously, is that the space under the cabin could be developed.

g. Jennifer generously offered a futon to replace the hide-a-bed in the front room. All shareholders present thought that was a great idea since the hide-a-bed is extremely uncomfortable. The futon will be brought at Easter. It was mentioned that it is appreciated that Jennifer presented this offer at a meeting rather than simply making the decision herself, and bringing the futon out to the cabin.

5. Year end review

The year went smoothly. The ants don’t seem to be a major problem. Some clean out of clutter done in main bedroom (closet and dressers).

6. Financial Statements

Jennifer presented all the financial statements for 2002 to the present. She indicated that we need to look at increasing the levy since our expenses average $5163 per year and we don’t take in much more than that. An important factor is the cost of taxes which have doubled since 2001. (See #8, “Ongoing Levy”)

Sharyn moved to accept financial statements. Sheila seconded. Shareholders thanked Jennifer for her meticulous accounting records.

7. Cabin Upgrades

The following are projects requiring attention in the near future. These can be considered for the Easter work bee. Duane and Vic are considering a work bee at Thanksgiving. If they go, Dale will be invited.

a. Spiral Staircase and Walkway

All agreed these are the priority. Parts of both are rotting. Michael has an idea for a plan for a stairway at front of cabin. Vic recommends not using stain as was done on spiral staircase and walkway since stain holds moisture in. The Shareholders are interested in hearing about Michael’s idea.

b. Re-stain exterior of Cabin

Jennifer noted that minutes of previous meetings indicated that we were planning to do 2ⁿd and 3^rd coats on exterior at Easter of ’98. (We could check in cabin manual to see if we actually did this at Easter of ’98.) The stain is “Sikkens,” and the exact number is in the Cabin Manual at the lake. Sheila purchased it at a Calgary store (possibly “The Oak Shop”) and Jennifer knows of another store where it is available (“The Cedar Shop”). There are some cans of Sikkens under the cabin; however, these have probably frozen and thawed repeatedly, unfortunately. If so, the product would not be good.

c. Dock

Some boards are rotting and the cribbing needs more rocks. Nails are sticking up in several places. For now, we can keep repairing/replacing boards here and there; however, eventually we will have to look at a more permanent option.

Vic asked that Sharyn sign the dock lease before going home after the meeting. 

d. Reflooring

It was noted that the carpets are getting old and that carpets are not the most sanitary kind of flooring. Michael has a proposal about laminate that he would be able to install. It was agreed that we should probably start with the bedrooms when we do this since they have the oldest carpets.

The Shareholders are interested in Michael’s proposal.

8. Ongoing Levy

Vic suggests that ideally we should have a fund of $5,000 to $l0,000 built up. This would be a reserve to take care of major repairs/expenses.

Presently, for the 2006 year, Shareholders are paying $l 060 ($30 per month and $500 levy + $200 extra to cover the extra taxes this year).

After discussion, the Shareholders present agreed to increase payments to $100 per month + an Annual Assessment of $800, for a total annual fee of $2000.

The rationale is that this would build up our reserve by $50/ month per shareholder, or $300 total per month, or $3600 total per year.

Once we have $5000 built up, we can get a GIC or an ING account so that the funds are not just sitting there doing nothing until they are needed.

The alternative to not building up a reserve is that something major could need repair and we would each have to come up with a lump sum on short notice, which all agreed would not be convenient.

9. Fintry synopsis

Jennifer presented shareholders with a synopsis indicating Financial commitments, Cabin Booking Slots for Summer 2007 along with the agreed upon jobs for each time slot and a List of the 2008 (should be 2007?) Booking Order. It was good to be reminded of the jobs for each time slot since some members were following a different list ofjobs!

Dale and Rhonda will receive copies of the Fintry synopsis.

10. New Business

a. Clutter

It is unanimously agreed that we need to get rid of “clutter” at the cabin.

Several areas were mentioned including closets, stuff stored under the cabin, the top of the pantry shelves, the number of books (library).

It was suggested that it would be nice to “open up” the space in the living room. Perhaps items could be culled from the shelving to the right of the fireplace. Then perhaps we could cut down on the amount of stuff to the left of the fireplace, incorporating it into the shelves on the right of the fireplace. If the library could be completely removed, the shelving to the left of the fireplace could be turned so that it backed onto the fireplace, (the back would be flush with the side of the fireplace), thus “opening up” the entire space to the left of the fireplace.

We will ask Dale to hide the stereo speaker wires so that nothing is suspended.

Perhaps move the freezer into the space where the organ is. Then trips don’t have to be made downstairs and fewer heads will get bumped on the beams under the house.

It was suggested that Shareholders agree not to bring out things that they intend to be permanent at the cabin without asking the other Shareholders if they want it out there. In particular, we need to be careful not to bring out things just because we don’t need them anymore. There are simply too many of us to do this without the cabin becoming cluttered.

The desire is that there be more useable space, like in a “time-share” unit of accommodation. In order to have this, a lot of stuff has to go. It was agreed that it is good to be having a dialogue about this.

b. Pets

We agreed that pets will stay outside the cabin. For family members who have asthma, the presence of pets in the cabin presents a serious health issue because their breathing suffers if there is pet hair or dander in the cabin from previous users.

c. Resolutions

Resolutions for 2002-2006, prepared by Jennifer, were signed by the Shareholders present. They will be forwarded to Dale and Rhonda.

Jennifer is missing minutes for 2001-2002. Does anyone have a copy?

d. Rhonda’s Shares

Rhonda has expressed her plan to move to Ireland in the near future and given the increase in taxes and, subsequently in fees this year has expressed to Vic that she needs to relook at her involvement as a Shareholder in Signant Two. She has asked if he has any suggestions for options for her regarding Fintry.

Vic opened the discussion about buying Rhonda’s shares. Using the present formula for the Value of Fintry Shares, and based on the 2006 assessed value of the cabin, it was calculated that the value of 12 shares was $47,299.32.

Presently there is not an interest in purchasing Rhonda’s shares. There was also an opinion expressed that given the nature of Fintry, shares should perhaps be forfeited rather than sold.

It was noted that in the future, another Shareholder may need to opt out because of an inability to pay fees. The price of taxes and upkeep will just

keep going up. Through this discussion, we are (sadly) aware that the present family ownership of the Cabin cannot go on forever. We are a large family that is ever growing and each family unit has its own circumstances. This discussion will continue.

e. Amendment to the Unanimous Shareholders Agreement

Vic raised again his proposal that we amend the USA to include the option of a Shareholder giving some of his/her shares to his/her spouse, the spouse thereby becoming a Shareholder as well.

There were strong feelings expressed in support of such an amendment and strong feelings expressed against it.

Concerns were expressed regarding possible scenarios that could conceivably arise where such Shares might become the object of a marital dispute or, following the death of one of the original shareholders, the surviving spouse, a full Shareholder, might cause problems. Vic believes that these concerns can be addressed in the wording of an amendment. He will work on this. The discussion will continue.

Just before adjourning the meeting, Vic mentioned that the first Saturday in March 2007, he will be knighted by a representative of France because of his work with the Alliance Française. He will receive the designation, “Chevalier de l’ordre nationale de mérite.”

Congratulations, Vic! Félicitations!

The next meeting of Signant Two will be just after Easter 2007, the exact date to be determined.

Meeting adjourned.

Minutes respectfully submitted October 16, 2006 via email by Sheila.