Hilton Lake Homeowners Association
Special Meeting of Members, 12/15/2006

Called by the Board of Directors
Re: Removal of Director John Nist

Directors in Attendance:

Ray Delger
Ray Metz
Kent Brady
Frances Collinwood
Scott Cicile
Jeff Lind
Costica G.

Members in Attendance:

Monty
Charlene Lind
Ron McKee
Steve Douglass

Proceedings:

Presiding Vice president Kent Brady cut off the voting at 7:20, as stated in the letter.

4 ballots were in the box at 7:20

Three Yes and a “none stated”.  One late ballot was thrown out.

The board ruled that 60 Yes votes are needed for removal.  Only 3 yes votes were received.  The vote to remove John Nist fails.

Other discussion:

There was discussion about accepting the prior petition proxys as votes for this action.  Ray Metz counted 51 of them.   The board’s understanding of the October 11^th 2006 lawyer response is that they are not valid proxys for this vote.

There was discussion about following the Quorum vote process as stated in the by-laws  and the board’s understanding of the October 11^th 2006 lawyer response is that a full 60 yes votes would be required for this action regardless of number votes submitted.  The board felt that even if the 51 invalid proxys were added to the 3 yes votes, it would still be short of 60.  The three valid yes votes in the box may also be in the list of invalid proxy petition entries.