Signant Two Holdings Ltd.

Special Meeting Minutes

April 11, 2015 

At Sheila’s

NOTE: Members of Dale’s family (Melanie, Cody, Carson and Brenna) were invited to attend the meeting as non-­‐voting participants and were asked in advance to address item #2 of the agenda.

Meeting called to order at 1:12 pm and chaired by Vic.

Present: Sharyn, Vic, Duane, Melanie (via Skype), Cody, Rhonda (via phone) and Sheila (secretary)

1. Time limit for meeting set at 1 ½ hours
   
2. Revisions to the agenda – Melanie added Item #11a: Firewood
3. Clarification: Melanie and Cody are observer members and are non voting members since Dale’s shares have not yet been transferred
4. Update from Dale’s block -­‐ Melanie spoke on behalf of her family and stated that her family’s intention is to go ahead with purchasing a share of Rhonda’s Signant Two shares and she clarified that in Dale’s will there is no mention of a bequest of his Signant Two shares to his children. 

Melanie is in agreement that Dale’s shares will go to his children.

Vic clarified that for the shares to be transferred to Dale’s children we could simply circulate a special resolution, send the original shares to Melanie as executrix, she would sign them as executrix back to the corporation, and then the company would re-­‐issue the shares to Cody, Carson and Brenna.

Possibilities: We could do it in either of these ways:

1. Issue one share certificate of 12 shares that would have all 3 names on it. (Cody, Carson and Brenna would collectively hold 12 shares)
   
2. Each could have a certificate for 4 shares. This would likely be the simplest.

Vic suggested that Dale’s family decide which option they wish and Melanie indicated that she will discuss it with Cody, Carson and Brenna.

Clarifications during discussion:

Rhonda asked if the purchase process for her shares could still go ahead without this transfer of shares having been completed. Vic clarified that yes, it can.

Melanie asked if more than one child could designate the same person as their proxy. Vic clarified that yes, they can.

Sheila asked if Melanie could represent one of her children at a Signant Two meeting. Vic clarified that anyone can speak as a proxy for a Shareholder.

Cody confirmed that he, Carson and Brenna would act as a block in terms of summer usage and Sharyn indicated that this would make the entire summer usage booking process simpler.

1. Implications in the event that family blocks own unequal numbers of shares: Vic clarified that everything is apportioned according to the share holdings, including yearly fees, voting power and access to the cabin.
2. Purchase of Rhonda’s shares

New information:  the 2015 Property Assessment Notice for the cabin is $715,000.00 (cents not included)

The value has dropped since last year’s evaluation of $844,000.00.

For discussion purposes, Vic did a quick valuation of shares for each of the 2014 and 2015 assessment values.

Old valuation (2014 assessment): $5,650.56/share—$22,602.22 (each, for 3 shareholders participating); $16.951.68 (each, for 4 shareholders)

(Secretary’s Note: After the meeting, Sheila confirmed through past emails that the 2015 valuation of $5,650.56 used in this discussion was correct.) 

New valuation (2015 assessment): $4,706.83/share -­‐-­‐-­‐ $18,827.31 (each, for 3 shareholders participating); $14,120.55 (each, for 4 shareholders).

Compromise: some value in between. Splitting the difference would be 5,178.70. Vic proposed 5,200.00 (15,600.00 each for 4 shareholders buying in).

A consensus was reached among, Sharyn, Vic, Dale’s block, Rhonda and Sheila that Rhonda’s shares will be purchased at a valuation of $5200.00/share.

Therefore, 4 family blocks are buying in and each will pay a total of

$15,600.00 for the purchase of 3 shares each.

Vic indicated that he will send Rhonda names of Calgary lawyers. Rhonda indicated that she will choose one and that this lawyer and Tony Young will be in contact to set up the sale of her shares to the four family blocks.

(Secretary’s Note: Once Rhonda’s shares are purchased, the ownership of shares in Signant Two will be as follows:

15 shares owned by each of Sharyn’s, Vic’s, Dale’s and Sheila’s blocks; 12 shares owned by Duane’s block)    for a total of 72 shares)

1. Election of President

Vic made a motion that Sheila be elected as President and Sharyn seconded it. Carried unanimously. Sharyn nominated Cody as Secretary, Vic seconded it.

Carried unanimously. Sheila will ensure that Cody has copies of minutes from a few recent AGM’s so that he has an idea of the format that has been used.

Cody was welcomed on board as the new secretary!

1. Revisiting Maintenance and Upkeep Decisions made at AGM 
2. Replacement of flooring

Laminate flooring is more durable than hardwood.

We would need a truck or a demolition bin to take away the old carpets. Laminate could be stored in the boathouse. It must be stored flat for protection.

Duane will check out costs of laminate and delivery costs. (preliminary calls) During her summer stay, Sheila will begin taking up carpets and store under deck. Others will continue the process when and if they are able.

Big green storage closet – suggested that we take out or decrease in size. Sharyn indicated that her family uses all of the storage area on the hallway side of the cabinet during their stay. We will explore whether the cabinet is made of detachable pieces and continue the discussion later. All agreed that this is something to be addressed prior to laying down laminate.

Tiling in front of fireplace is dated and damaged. The time to repair, or most likely replace, is prior to laying down laminate.

Duane suggested that we could start laying laminate in bedrooms first and that the whole project would not necessarily have to be completed all at once. It was also acknowledged that the process of laying the laminate will go quite quickly. The bigger job is preparing the floor.

Plan:

Step 1 – prepare the floor by removing carpets. Do it in stages, as family members are able to contribute help.

Step 2 – Buy laminate when the floors are prepared or at least a good portion is prepared. Store flat in boathouse.

Step 3 – Lay laminate.

• Accomodations Regarding the Pet Issue

-­‐Sheila confirmed that she will be bringing two air purifiers to the lake and that they have filters that have a capacity of 10X the strength of a Hepa filter.

Suggestion: Those with pets could bring their own bedding and blankets

• Buying new beds and end tables for bedrooms – if we find a good sale we can act on it, but it may be best to wait until after the laminate is installed.

It was acknowledged, however, that the bed in the third bedroom is particularly uncomfortable. Some people don’t even use it, presently, because of this.

• Responsibility of shareholders, generally, to attend work bees and contribute to the upkeep of the cabin. The USA (Unanimous Shareholder’s Agreement) deals with this and imposed a financial penalty for not attending work bees. That has generally been ignored. (Vic’s item) We will follow this more closely in future.
  
• Other -­‐-­‐ Sharyn indicated that Mike Almond will be at the cabin June 18 –

23. He will check washer and if it can’t be fixed, we need to purchase another. Unanimous agreement among shareholders that we should simply purchase another.

Melanie mentioned that she knows someone in town who sells used appliances. She will speak with him to explore possibilities.

1. Licences, Insurance, Hydro, Property Taxes and other financial commitments
2. Dock Licence update – Sharyn has contacted office and was told they were quite “backed-­‐up” and that we should simply wait to hear from them.
3. Property Insurance – Sheila has contacted Meloche Monnex, a division of TD Insurance Direct Agency Inc., regarding the cabin’s property insurance. She learned that someone should go in to check the cabin once a month in winter (when the water and furnace are off) and once a week once the furnace and/or water are turned on. We will need to make arrangements next winter so that someone goes in once a month to make sure there has not been vandalism, theft or anything problematic.

Presently, Melody Aubin, Sheila’s friend at the lake, is going into the cabin to check every few days since Sheila left the furnace at 10 degrees so that the pipes would not freeze after her stay in February 2015. Sheila will inform her that one visit a week is sufficient.

Melanie T. has kindly offered to go out to the cabin every couple of weekends this spring to mow the lawn and has asked to be informed of any cabin usages, particularly on weekends, so that family usage times do not conflict.

• Fee Schedule

Present yearly assessment of $1500 for owners of 12 shares to be paid in two instalments of $750 each, May 31st and October 31st, yearly. ($125 yearly per share )

Once Rhonda’s shares are transferred, those 4 shareholders will top up their annual fee, paying $125.00 per additional share they own. ($375.00 for 3 additional shares)

User Fee of $5 per person per night for usage of the cabin is back in effect.

• Cabin Usage

If possible, Vic will adjust the schedule to accommodate Sharyn’s increased number of days, so long as this change does not negatively impact others who are restricted due to previously arranged summer holiday dates. Sharyn indicated that she is flexible as long as she has the present dates.

• Present Summer Usage 2015 Schedule

Sheila: June 29 – July 12 (14 dates, 13 nights)

Duane: July 13 – July 23 (11 dates, 10 nights)

Dale’s Family: July 24 – July 31 (8 dates, 7 nights)

Sharyn: Aug. 1 to Aug. 11 ( 11 dates, 10 nights)

Vic: Aug. 12 – 25 (14 dates, 13 nights)

Dale’s Family: Aug. 26 – Sept. 2 (8 dates, 7 nights)

Other Cabin usages that are registered: 

• Dale’s family:  September 3-­‐6, 2015
• Duane’s family: May 15 to May 18, 2015
• Sharyn’s family: June 18th to June 23rd, 2015 
• iv – Duane’s family: Sept 7 to Sept 21, 2015

At some point we will have to look at “out of summer usage” as more people are retired.

• Sheila will scan receipt for ant treatment and forward to Melanie so that the remaining application can be done this spring.
• Other Items Discussed

1. Firewood

Melanie wondered if we might want to go in on a load of firewood with Sam and Rick Sanderson since they will be getting a load, soon. We no longer have Dale’s truck to get wood. All were in agreement and Melanie will arrange this. Sheila asked Melanie if she has any cheques for making such purchases for the company. She is not aware of any and Sharyn offered to send her some.

1. Vic needs his telescopic table from dining area and will be removing it.
2. Cody indicated that Carson will be taking the chainsaw (brand: “Huskavarna“) which Dale owned, personally. There is another chainsaw in the boathouse which belongs to the cabin.
3. Vic asked Sharyn to ask Mike if he could take over responsibility for “motors” – eg. Small boat motor, chainsaw. Could he inform us regarding type of fuel, gas/oil mixtures, need to be oiled etc… Sharyn will follow-­‐up on this.

1. Moved by Vic that we continue the status quo that Dale’s family does not pay a user fee, given that Melanie has taken on Dale’s former responsibility of mowing the lawn regularly when no one is there. All were in agreement and expressed their thanks to Melanie.
2. Sheila will ensure that Melanie, Cody, Carson and Brenna each receive a copy of the USA (Unanimous Shareholders Agreement)
3. Sheila mentioned that at the time of Dale’s service big debris was removed from the beach, the eavestroughs were cleaned and pine needles were swept off the roof of the cabin and burned.

1. Preparing for 2015 AGM

1. Set date: Nov 7th, 2015, beginning with lunch at noon and meeting at 1:00, at Sheila’s.
2. Agenda Items to be included:
   
   1. Booking Procedure for 2016
   2. Develop a comprehensive maintenance list such as the one suggested by Sheila in the draft agenda for the April 11, 2015 meeting. Sheila will forward this draft list to Dale’s block since they did not receive the draft agenda. They only received the final agenda.

All shareholders are encouraged to make note of items they want added to this maintenance list in preparation for our discussion on Nov 7, 2015.

1. 1. Begin anticipated timeline for big maintenance items: spiral staircase, roof, siding, other:       
   2. Pumping out septic tank -­‐ frequency
   3. Furnace cleaning and safety check -­‐ frequency
   4. Propane tank – frequency of testing; frequency for adding propane
   5. Culling in boathouse
   6. Culling under cabin
   7. ***Cabin Cleaning (Please see note below.)
   8. Other: firewood,      

Meeting adjourned at 2:55 pm.

***Secretary’s note: Just to make everyone aware of a new discussion: two weeks after the meeting, Paulette called Sheila and suggested that along with our review of maintenance needs at the cabin we might also review our game plan regarding cleaning since this has not been looked at for a long time. In particular, she suggested reviewing the tasks for each designated Time Block in the summer and discussing if anyone wants to change the nature of the tasks or their order. As well, Paulette suggested developing and posting at the cabin a master list of additional cleaning tasks that would be helpful in the overall care of the cabin. Family blocks could perhaps take care of and date/initial one or two of these items during their stay at the cabin. Paulette mentioned such tasks as gathering debris from the beach, gathering pinecones, cleaning the window screens and any other tasks that people presently take on under their own initiative. This could help our group by simply making everyone aware of which things have been done in a given summer, for example. Sheila thinks that this is a great idea and that it goes hand in hand with our review of maintenance of the cabin; therefore, she has added this to the list of possible agenda items for our Nov 7, 2015 AGM, simply for efficiency. (i.e. so that it is remembered…..) Many thanks, Paulette, for adding this idea to our group conversation.

Minutes respectfully submitted May 10, 2015 by Sheila.

Wishing a very Happy Mother’s Day to Sharyn, Kathleen, Paulette, Melanie, Sheila & Rhonda and all Moms in the next generation!