Signant Two Holdings Ltd.

Special Meeting Thursday, March 18, 2021

7:00 – 8:30 MST

Via Zoom due to COVID-19

MINUTES (prepared by Ron, reviewed and modified by Sheila)

Agenda

1. Opening of Meeting Welcome by Vic
2. Volunteer to take minutes (if Cody is absent)
3. Financial Situation
4. Upcoming Financial considerations:
   1. Utility Trailer
   2. Tub Surround
   3. Ant Control
   4. Other projects:
      1. Flooring
      2. Hot Water Tank
      3. Main Water Valve Replacement

1. Meeting called to order
   1. Meeting hosted by Vic through Zoom and chaired by Sheila
   2. Attending by Zoom: Shareholders: Sharyn, Vic, Duane, Carson, Sheila

Observers/Participants: Melanie, Jim, Mike, Stephen, Ron

1. Approval of Agenda

There was no formal approval of the agenda; however, the agenda was followed, with a few additional points added which arose in view of the discussions, as noted in the minutes.

1. Minutes

Ron volunteered to take the minutes in Cody’s absence.

1. Financial Situation

• Sheila has reviewed the financial status of Signant Two Holdings Inc., based on documents provided to Shareholders by Jennifer at the last AGM, Nov 29, 2020. (2019 and 2020 Financial Reports) The review was based on current fixed costs (taxes, utilities, etc.), upcoming maintenance and repairs, and planned upgrades.
• Sheila’s conclusion: Current revenues (based on annual levies and user fees) are not adequate enough to cover expenses, repairs and upgrades. (For example, Total Income minus Expenses, including only $1300 to $2300 spent on repairs, yields a surplus of only

$1400 to $1600 per year, on average. This is not an adequate amount to be carrying forward into the next year. This year, the cost of desired repairs and upgrades far exceeds the funds available, so decisions must be made at this meeting regarding what can be afforded and what must be put on hold.)

• Sheila’s conclusion is that revenue needs to be increased in order to make the cabin viable, especially considering the increased use that the cabin is now experiencing.
• After considerable discussion there was unanimous consensus that current revenue sources cannot meet immediate and future needs.

• Duane put forth the following motion:

1. That the daily User Fee be increased from $5.00 to $10.00 per person per day to aid in the current shortfall in revenue, with a plan to review the new fee at the 2021 AGM.

1. That the Annual Levy be left at the present amount with a plan to review it at the next AGM, with the possibility that it may also need to be raised, if the increase in User Fees does not provide adequate revenue.

The motion was seconded by Sheila and discussion of the motion took place. At one point Jim suggested that the daily user fee could be increased to $20.00 per person per day. There was some discussion and Duane amended the motion to include Jim’s suggestion. The amended motion was as follows:

1. That the daily User Fee be increased to $20.00 per person per day to meet the current shortfall in revenue, with a plan to review the new fee at the 2021 AGM.
2. That the Annual Levy be left at the present amount with a plan to review it at the next AGM, with the possibility that it may also need to be raised, if the increase in User Fees does not provide adequate revenue.

• The amended motion was brought to a vote and was accepted unanimously by the shareholders present. (Four family blocks)

• Vic suggested that there be a follow-up meeting, possibly in May, to review the issue and take further action if necessary. There was general consensus but no motion.

1. Clarification Regarding User Fees

• Duane asked for clarification of who pays User Fees. He noted that the group had decided previously that Melanie and Jennifer are exempt from paying user fees given their substantial contributions to the company. He also noted that we have agreed that user fees will not be paid during work bees at the cabin. There was consensus about both these aspects.

• (In support of this discussion regarding who pays User Fees, the president is adding to the minutes, subsequent to the meeting, “Article 20.5” of our “Unanimous Shareholders Agreement,” which follows. It is noted that at a future meeting, Shareholders should clarify all aspects of this Article. For example, do we still wish to include the clause regarding “any use of the Cabin exceeding 72 hours in duration?” And further, do we wish to stipulate a timeframe following a booked stay, during which the User Fee should be submitted?)

Article 20.5    “There shall be a fee payable by every Shareholder for any use of the Cabin exceeding 72 hours in duration (the “User Fee”). Payment of the User Fee shall be voluntarily calculated and forwarded to the Administrators as soon as possible after such extended use. The User Fee shall at the outset be set at $5.00 per night per person and may be increased by way of a resolution passed by a majority of the Shareholders.” (Unanimous Shareholders Agreement, 1994, “USA”)

1. Upcoming Financial Considerations

1. Utility Trailer

1. • Sheila reported that she and Ron found a trailer for sale on Kijiji at a price of $800.00. The online description of the trailer appeared to meet the needs and requirements previously discussed by Shareholders for use at the cabin.
   • After consulting with Mike, given his expertise and the fact that he had been on the lookout during the past two years for a trailer for the cabin, Sheila consulted with Shareholders regarding making a decision about the trailer jointly with Mike, depending upon their findings. Some Shareholders responded right away and it was decided that Sheila and Mike should make a decision quickly, given that these Kijiji opportunities often do not last long. Sheila and Ron were able to purchase the trailer for the listed price. The final cost of acquiring the trailer totaled $963.00 ($800.00 for the trailer purchase and $163.00 for registration and license plate).
   • Trailer registration is in Sheila’s name, is for the lifetime of the registrant, and can be transferred to another trailer in the future, if desired.

1. Tub Surround

1. • Carson is investigating the cost of having a new acrylic shower enclosure professionally installed. Currently, the best price is approx $1350.00 (surround and installation). Carson noted that he replaced with water resistant drywall the existing drywall which had been damaged by water and/or mold. Carson also noted that there appear to be no leaks in the plumbing around the shower and bathtub.
   • Jim suggested that we could get another tub surround from RONA, as he and Mike got the previous one there, prior to installing it at the cabin. Carson indicated that he had checked out the one at RONA, but found the quality to be lacking and had found negative consumer reviews online.
   • Mike offered to investigate the cost of using tile for the shower walls instead of using an acrylic enclosure. Duane and Vic offered to work with Mike in researching products. Mike offered to do the installation of tiles, possibly in June, if this option is more cost effective.
   • Mike will report back to the group as soon as possible and then a final decision will be made regarding which solution to use. Mike suggested that if the two options are close in price, it would be advisable to opt for the tub surround, given that it would require less work.
   • Duane asked if it would be possible to use the bathtub, only, in its present state, prior to the new installation of either a tub surround or tiling. It was suggested that plastic could be used to protect the exposed drywall thereby enabling the bathtub to be used until the new installation were complete. Mike offered heavy plastic sheeting that he has access to which would be ideal for that purpose. Duane said that he would install the plastic during his upcoming stay at the cabin in April (April 3-10, 2021).
2. Ant Control Background:
   • In October 2020 when he and Kathleen drained the cabin, Vic spoke with BugMaster, the company who came out last time. He learned that they do not “fumigate,” but rather, they spray insecticide “here and there, both inside and outside.”
   • Melanie has since spoken with Bugmaster and has confirmation that their product does not pose a danger to children or pets. Melanie is planning to arrange BugMaster’s visit in the near future. A window of only an hour or an hour and a half is needed prior to people using the cabin, according to that company.
   • Given the quote received by Melanie and shared with the group prior to this meeting regarding BugMaster’s array of application frequencies, Vic put forward a motion to contract BugMaster to provide its service for the upcoming cycle (Spring, Summer, Fall). Sheila recommended the “Platinum Level” (greatest number of applications) so that we get the most positive result for our efforts to eliminate this problem which, all agreed, has plagued us for years. Following a short discussion, there was agreement that we opt for the Platinum Level which provides the following applications:

Platinum Level (15% Discount)

Seven Applications: 2 Inside and 2 Outside (Spring and Fall) + 3 additional Outside-Only, through summer

2 wasp bags installed during summer service

Rodent bait boxes installed with bait replacements as necessary during scheduled visits

Base cost $1605 + GST per year.

PPP Discount price $1364.25 + GST per cycle

1. • Mike asked if there would be an application inside the boathouse, noting that there are many ants, especially in the South West corner. Sheila recommended that Melanie contact BugMaster to ask them for an updated quote which would include an application inside the boathouse in both Spring and Fall, as would be planned for the inside of the cabin and storage room. All agreed. Sheila suggested that she and Melanie be authorized to make a decision based on the updated quote, offering that an increase of up to $250 be considered acceptable. All Shareholders were in agreement. If the increase were higher than $250, Melanie and Sheila would consult with the group prior to deciding to proceed.
   • Melanie also noted that she estimated for BugMaster the dimensions for the cabin, storage room and boathouse. In their quote, they seem to have made an error regarding these interior areas, possibly confusing the area of the storage room with the area for the boathouse. If this error poses a problem during their first visit; for example, if BugMaster claims that the areas are greater than anticipated, we may need to address this and re-negotiate the price.

(Point of Clarification by president: Subsequent to the March 18th meeting, Melanie was able to clarify with BugMaster the exact interior areas of the cabin, storage and boathouse, as well as requesting that the interior of the boathouse also receive Spring and Fall applications. She received a modified quote of $1244.40, which is actually less than the first quote!! Great work, Melanie!!)

1. Other Projects

1. Flooring

Due to the current financial constraints, work on the flooring project is to be postponed until a later date. Vic, Duane and Mike will do further research regarding materials and cost

1. Hot Water Tank

This item was tabled. It was agreed that due to the current financial constraints, replacement of the hot water tank is to be postponed until such time as financial resources permit the replacement. It was noted that the increase in user fees could make completion of this project possible later in the summer of 2021.

1. Main Water Valve Replacement

This item was tabled. It was agreed that due to the current financial constraints, replacement of the main water valve is to be postponed until such time as financial resources permit completion of the project. It was noted that the increase in user fees could make completion of this project possible later this summer (2021), and the urgency of this project was identified.

(Point of Clarification by president: No specific plan was made regarding a projected figure for anticipated user fees which could finance this replacement. Neither was a timeframe established when a decision could be made regarding the possible replacement of the main water valve, this summer. This idea requires follow-up during the upcoming months. Sheila notes that in Item #4 earlier in the meeting, Vic proposed that we could have a follow-up meeting in May to review the issue of User Fees and take further action, if necessary.)

1. • Vic suggested that Carson’s offer to dig around the main water valve in preparation for replacement should be accepted. No motion was put forth but there was unanimous support for the idea.
   • Vic mentioned that he will be in touch with Fintry Utilities regarding whether or not there is a water shut-off valve out on Shorts Road. Sheila confirmed her certainty that there is one and that its location is indicated on a map that she made years ago with the help of Dad and Dale. Vic asked if that map is in the cabin manual and Sheila confirmed that it is.

1. Other Business

1. Committees
   • Vic proposed that when a decision is needed for a particular repair or upgrade, once the group has decided to proceed with the project, the group could establish a committee to research the options and make a decision on behalf of the group. In this way, not all Shareholders would need to be contacted regarding each decision. Moving forward, given the increasing number of decisions to be made, this would be more efficient. The group agreed.

1. Update to Cabin Manual
   • Vic requested that an addition be made to the cabin manual which instructs users on the procedure for draining the shower. Sheila asked for clarification and the following was offered: “The stopper needs to be pulled so that water drains from the vertical shower pipe.” Sheila will update the cabin manual regarding “Draining the Cabin”.
2. Distribution of Digital Booking Calendar and Maintenance List
   • Sheila suggested that the digital Booking Calendar and the Maintenance List which Cody has developed be shared with the next generation. Vic recommended that the sharing be done on a “read only” basis rather than allowing everyone to edit the documents. All agreed. Sheila will ask Cody to distribute these documents to the broader family.

1. Authority for Financial Decisions in case of an Emergency
   • Vic made the following motion, seconded by Duane:

That, in the event of an emergency, any shareholder and/or Melanie will automatically have the authority to make whatever decisions are necessary to address and correct the emergency.

1. • The motion was unanimously passed by all shareholders present.

(Point of Clarification by president: In approving this access to fund in the case of an emergency, among other possibilities, the Shareholders are keenly aware of the grave possibility, which has been acknowledged recently by all and confirmed during the course of this meeting, that if the underground main water shut off valve were to rupture, there would be immediate erosion underneath the cabin which would probably soon undermine the foundational supports for the cabin. The result could be catastrophic.)

1. Adjournment

• Sheila adjourned the meeting at 8:30, thanking all for their attendance and contributions to the discussions.