First Amendment to the PLR Bylaws

Notarized 8/17/76

Summary: This Amendment affects Article IV, Membership, Voting Power and Determination of Property.

 ARTICLE IV

MEMBERSHIP CERTIFICATES, VOTING POWER, AND

DETERMINATION OF PROPERTYRIGHTS AND INTEREST

1.      MEMBERSHIP CERTIFICATES: Each member shall be entitled to receive a certificate of membership, which certificate shall state the number of votes he is entitled to cast as a member of the Association.

2.      MEMBERSHIP:

A.     Qualifications.  Each owner of a block and each condominium project, as described in the Declaration of Covenants, Conditions and Restrictions of Pine Lakes Ranch, recorded in the office of the Recorder of Valley county, Idaho, as Instrument No. 83372 and each owner of a block in any and all lands added to the property covered by said Declaration, as provided by Article VIII, Section 8.10 thereof, by virtue of being such an owner and for so long as he is such an owner, shall be deemed a member of the Association.

B.     Transfer of Membership.  The Association membership of each owner (including Grantor) shall be appurtenant to said block or condominium project, and then only to the transferee of title to said block or condominium project.  Any attempt to make a prohibited transfer shall be void.  Any transfer of title to said block or condominium project shall operate automatically to transfer said membership to the new owner thereof.

3.      VOTING:

A.     Members shall be owners and the number of votes a member may cast shall depend upon the number of acres within each block, or portion thereof, which the members may own, as follows;

            The Owner of a block in Pine Lakes Ranch shall have four (4) votes for each block owned, there being 52 blocks in Pine Lakes Ranch except that in the event a block therein is divided as provided in Article III of said Declaration, the votes for such block shall be divided and the Owner of each half thereof shall have two (2) votes. 

Each condominium project in Pine Lakes Ranch shall have four (4) votes.

            The owner of a block in Pine Lakes Ranch Addition No. 2, in which there are 17 blocks and in Pine Lakes Ranch Addition No.1, in which there shall be 15 blocks, when the official plat thereof has been filed, shall have two (2) votes for each block owned except that in the event a block therein is divided as provided in said Article III of said Declaration, the votes for such block shall be divided and the owner of each half thereof shall have one (1) vote. 

            The owner of each block may, by notice to the Association, designate a person (who need not be an owner) to exercise the vote for such block.  Said designation shall be revocable at any time by notice to the Association by the owner.  Such powers of designation and revocation may be exercised by the guardian of an owner’s estate by his executor or administrator where the latter’s interest in said property is subject to administration in his estate.

B.     Joint Owner Disputes.  The vote for each such block shall, if at all, be cast as a unit, and fractional votes shall not be allowed.  In the event that joint owners are unable to agree among themselves as to how their vote or votes shall be cast, they shall lose their right to vote on the matter in question.  If any owner casts a vote representing a certain block, it will thereafter be conclusively presumed for all purposes that he or they were acting with the authority and consent of all other owners of the same block.

C.     Cumulative Voting.  In any election of the members of the Board, every owner entitled to vote at such an election shall have the right to cumulate his votes and give one candidate, or divide among any number of candidates, a number of votes equal to the number of votes to which that owner is entitled in voting upon other matters multiplied by the number of directors to be elected.  The candidates receiving the highest number of votes, up to the number

 of the Board members to be elected, shall be deemed elected.

D.     Transfer of Voting Right.  The right to vote may not be severed or separated from the ownership of the block to which it is appurtenant, except that any owner may give a revocable proxy as above provided, or may assign his right to vote to a lessee or beneficiary of the block for the term of the lease or Deed of Trust, and any sale, transfer or conveyance of such block to a new owner or owners shall operate automatically to transfer the appurtenant vote to the new owner, subject to any assignment of the right to vote to the lessee or beneficiary as provided herein.

E.      Meetings of Owners.  There shall be a meeting of the Owners on the 30^th day of January of each year at Cascade, Idaho, or at such other reasonable place or time (not more than thirty (30) days before or after such date) as may be designated by notice of the Board given to the Owners not less than ten (10) or more than sixty (60) days prior to the date fixed for said meeting.  A special meeting of the owners may be called at any reasonable time and place by notice of the Board or by the owners having one-fifth (1/5) of the total votes and delivered to all other owners not less than ten (10) nor more than thirty-five (35) days prior to the date fixed for said meeting.  The presence at any meeting in person or by proxy, of the owners entitled to vote at least a majority of the total votes shall constitute a quorum.  If any meeting cannot be held because a quorum is not present, the owners present, either in person or by proxy, may, as otherwise provided by law, adjourn the meeting to a time not less than forty-eight (48) hours nor more than thirty (30) days from the time the original meeting was called, at which meeting the quorum requirement shall be the owners entitled to vote at least twenty-five percent (25%) of the total votes.  The president of the Association (or the vice-president in his absence) shall act as chairman of all meetings of the owners and the secretary of the Association (or an assistant secretary thereof in his absence) shall act as secretary of all such meetings.  Except as

otherwise provided herein, any action may be taken at any meeting of the owners upon the affirmative vote of the owners having a majority of the total votes present at such meeting in person or by proxy; provided, however, that the members of the Board may be elected by cumulative voting as provided in Section 6.03 D of said Declaration above described.  At each annual meeting the Board shall present a written statement of the Fund established by such Declaration, itemizing receipts and disbursements for the preceding calendar year and the allocation thereof to each owner.  Within ten (10) days after the date set for each annual meeting, the assessment statement shall be delivered to the owners not present at said meeting.

4.      NOTICE:  WAIVER: Notice of annual and special meetings of the members must be given in writing and must state the date, hour, place of the meeting, and generally describe the nature of the business to be transacted.  Such notice shall be delivered personally to, or deposited in the mail, postage prepaid, addressed at the last known address as shown on the books of the Association, to the owners or any one of the co-owners of each membership as shown on the books of the Association and shall be delivered or deposited in the mail at least ten (10) days prior to the date of the meeting. 

In the event that a special meeting is called by the members as aforesaid, they shall notify the Secretary-Treasurer in writing of the time, place, and purpose of the meeting in sufficient time to permit the Secretary-Treasurer to give notice to all members in accordance with these By-Laws.

            Written waiver of notice signed by or attendance at a meeting by the owners or any one of the co-owners of a membership shall constitute a waiver of notice of such meeting, except to the failure to receive such notice or to defects in the notice.

5.      CERTIFICATES HELD: Membership certificates held in estates or trust may be voted by the administrator, executor, guardian, trustee, conservator or receiver thereof without such membership or title to the tract being transferred to said person.

6.      CONDUCT OF THE MEETING: The meeting will be conducted by the officers in order of their priority.  The order of business shall be a call of the roll, a reading of the notice, and proff of the call, report of officers, report of committees, unfinished business, new business, election of directors and miscellaneous business.

IN WITNESS WHEREOF, Grantor has executed this Amendment this 17^th day of August, 1976.

                                                          WESTERN-DAAGCO

                                       Western National Corporation

                                       By__Robert J. Duncan (Signature)__

                                               President

ATTEST:        

__Helen Jean Miller( Signature)___

       Secretary

                                       Daagco Development, Inc.

                                       By __Fred K. O’Brien (Signature)__

                                                    President

ATTEST:        

______Elzo E. O’Brien (Signature)___             

            Secretary

STATE OF IDAHO    )

                                    )     ss.

County of Ada           

On this 17^th day of August, 1976, before me the undersigned Notary Public in and for said State, personally appeared ROBERT J. DUNCAN, known to me to be the President of Western National Corporation, and FRED K. O’BRIEN, known to me to be the President of Daagco Development, Inc., who executed the within instrument, and acknowledged to me that such corporation executed the same.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written.                                    

___Violet L. Kennedy (Signature)_____

                                              Notary Public for Idaho 

                                              Residing at Boise, Idaho