Date: 11/25/00

To: Princeton Lakes Property Owner’s Association

Subject: Meeting Minutes of 11/16/2000

From: Alan Myrick – Secretary, Princeton Lakes POA, Inc.

I. Call to Order II. Approval of October 21, 2000 Meeting Minutes III. Project Development Update by Gordon Hall - Recent progress slow due to weather - Cast Stone work completed - Electricity/Bridge: trenching under the bridge will be necessary to provide electricity to the west Side of the development. IV. Officer’s Report A. Vice-President’s Report 1. ACC (Architectural Control Committee) Boat Dock Check list developed and distributed to Owners present at meeting (for copy, contact Richard Myers). 2. General Compliance Issues recorded in memo dated 11/16/00; intent to clarify interpretation of Boat Dock guidelines and CC&R’s on various subjects. 3. All plans for home and docks must be submitted to and approved by ACC, (including boatlift mechanisms), prior to construction. 4. Any partial dock plans (i.e. piling layout) previously submitted to Gordon need to be resubmitted to and approved by ACC as completed dock plans. 5. All docks require City of Princeton permit. City will conduct random audits and issue fines for those docks not permitted. 6. Reminder that all dock construction must be completed 180 days from start (installation of pilings). 7. “Nyman Hydraulic” type boatlifts meet the intent of the CC&R’s since they do not create a backwash or “roller” condition. B. Treasurer’s Report 1. Cash Flow Forecast for 2000 and 2001 distributed. 2. It’s projected that in 2001 cash income will be short by $10,200 from that projection developed by Gordon; Gordon’s projection assumes all lots will be closed and paying monthly dues. 3. Discussion regarding liability insurance. Annual premium is actually $4,750 but was budgeted at $2,000. Efforts will be taken to research alternatives in an effort to experience lower premiums. 4. Personal boat insurance must be carried at $300,000 with “Princeton Lake Property Owner’s Association, Inc.” as the additional insured. 5. Upon listing Princeton Lakes with your insurance company, the insurance company will mail a copy of the insurance policy to Princeton Lakes POA. 6. Upon receipt of your insurance company’s policy, you’ll receive a sticker (with Princeton Lakes logo) to display on the lower left windshield. Purpose: visual proof to other lot owners that you’re a member of the community. 7. Bills for Nov. and Dec. association fees have been mailed and every lot owner should have received their invoice by now. If not, contact Robyn. 8. A 15% penalty will be assessed on all association fees paid 30+ days late. 9. Princeton Lakes POA has received its property tax bill for 2000. Amount equates to $826. 10. Discussions regarding ways to decrease operating costs; porta-potty will be canceled during winter months since there’s not enough usage. 11. Bookkeeping records will be brought to every meeting and open for anyone to review. C. Secretary’s Report 1. Short list of individuals still not in Address Book or need update: a. Max Frankum b. Len Woodward c. Jay Rapp

D. Lake Operations Report 1. Safety Issues were discussed and Sven referred to Lake use Rules distributed by Gordon Hall at Lot Closing 2. Lake level has approached 8’ where spillway is designed to manage excess water to avoid additional increase in lake level. Board has proposed lake level not exceed 7’6” so as to avoid dock banding going under water. Water level at 8’ allows large waves to crash over top of dock and possibly cause property damage or injury. Valve on Lake 2 opened which allows drainage of excess water through 12” drainpipe out to Lake Lavon. 3. The Association agreed to restrict owner’s, owner’s children and authorized guests from “playing” on the jump ramp to avoid possible injury. 4. Erosion on Lake 4 to be monitored; update at next meeting with proposed plan to resolve if necessary. 5. Due to high water level, all ski courses are under water and care should be taken to avoid damage to course. 6. Sven discussed the fine art of buoy replacement and adjustment. Refer to document distributed at meeting for buoy system. Please replace buoy immediately after damage occurs to avoid inconvenience to following skiers. 7. All buoy equipment is located in storage box next to boat ramp on Lake 1. 8. Ski courses on all Lakes will be left in place until further notice. 9. A work crew was scheduled for 11/18 to remove debris from trees near Lake 4. Update: This work party did not occur; stay tuned for future communications as necessary. 10. Owners voiced concern over “health” of trees near Lake 4; Consensus is the trees are deciduous and will loose all leaves each fall; no action is necessary.

V. President’s Report A. Discussion regarding erosion and grass on shoreline. 1. Suggestion to seed more area of lots with winter grass such as perennial rye. B. Due to recent rains, level of lake has risen above expected levels; 8’6” high water level is by design. Spillway on berm along Hwy. 380 is not a preferred method to release water. 1. Gordon Hall will open valve on drainpipe to release water. 12” diameter pipe is capable of releasing approximately 1” of vertical water height per day. Recent rains increased level of water as much as 8” in ONE DAY! Guess that’s a good problem. 2. Gordon Hall to install second 12” vertical drainpipe at the 7’6” level. 3. During spring rains, level may be allowed to rise as high as 8’ in anticipation of the dry summer. C. Discussion regarding removal of ski courses from one of lakes to open up ski area for wakeboarding, trick skiing and other non-slalom ski type activities. 1. Mini-course on Lake 1 and Trick course on all lakes to be removed. 2. Subject will be addressed at future meetings if necessary. D. Fish Stocking 1. 100,000+ Minnows and 50,000+ Bluegill released into lakes 2. If weed/grass problem surfaces, then further stocking of a grass carp is possible 3. UV dye keeps growth in lakes down by limiting the sun’s rays from reaching the lake bottom. E. Official name of Association: Princeton Lakes Property Owner’s Association, Inc. F. Official address for correspondence: PO Box 1116, Princeton, TX 75407 G. Lake Liability Insurance premium – Too High? Board is investigating. H. Owner Stickers for Boats to be affixed to lower left glass on port (left) side. Stickers will be distributed to Owners as Secretary, Alan Myrick, receives proof of liability insurance. I. All Owners must contact their insurance company to verify $300K liability coverage and also name Princeton Lakes Property Owner’s Association, Inc. as “Additional Insured” on policy. Insurance company should mail copy of updated policy to PO BOX 1116, Princeton, TX 75407. Proof of Insurance must be received by next meeting, tentatively scheduled for January 2001. J. “Hold Harmless Agreement” 1. Must be signed by all guests in advance of any ski activity on property 2. Copy of agreement will be mailed to all Owners K. Tournaments in 2001 1. Tournament committee proposed three tournaments in 2001 at local meeting. 2. South Central Regional council meets in January to approve final list. L. Bylaws – general discussion; more input at next meeting. M. Electric Boxes on property to be reset due to erosion of recent rains. N. Correspondence form distributed at meeting to select preference of Email Vs Snail Mail; form will be sent to all Owners not present at meeting by both methods. Please complete and return by email or address listed above. O. Building Permit Fees 1. Report on City Council meeting attended by Tim Gilker and Richard Myers. 2. Building Permit Fee averages $3,500 to $5,000 for homes with a price tag of $200K to $350K. a. Other developments in Princeton are paying fees and one developer is on City Council and has encouraged an increase in fees. b. City Council feels the fees are justified and, in addition, the new Third Party Auditors/Inspectors will provide a better service to protect the Owner. c. Doug Taft of McDee Homes reported that by comparison Princeton fees are higher than McKinney and also Melissa, TX. d. Board recommends sending letter to Gordon Hall(CC: Mayor Kathy Davis) on concern of excessive fees and how this could keep the project from reaching its full potential. 3. Princeton City Council meeting is held 2nd and 3rd Tuesday of each month at 7:30pm, located at corner of 3rd and Front streets in Princeton. 4. General consensus is to get representation on City Council in future and impact future elections next year. 5. Check out City of Princeton website: princetontx.com VI. Meeting Adjourned

Next Property Owners Association Meeting – TBD Addendum to 11/16/00 minutes:

Updates per Gordon Hall of LSF Development.

-in IV.B.2, Treasurer's rpt... the statement " Gordon’s projection assumes all lots will be closed and paying monthly dues." needs clarification. The budget accounted for all waterfront lots being sold. It did not assume any of the 11 waterview lots in the budget. So there is upside potential to balance against the downside risk of not all lots closing immediately. It also didn't include any tournament income, more upside potential.

-in V.D.1 on fish stocking, it was 5,000 bluegills (not 50,000).