This is a copy of the loan agreement that the Kontiki Condominiums Council of Co-owners, Inc. has with Chris and Karra Crowley. It says it was adopted at a meeting in 2006. I can find no minutes of such a meeting. I have heard that a late fee of 6% was added for late payment. I have to say that the failure of the board to conduct business and keep records in a business like manner gives me heartburn. I overheard a board member say after our last owners' meeting that now with the new board membership, board meetings can be done by email. I think he was serious. Corporations have to keep records and they are supposed to be kept at the place of business, or in this case, at Johnson and Cate. The Texas Attorney General's office tells me that only a civil lawsuit will resolve the issue and I would surely not want to see our resources spent this way!

RESOLUTION OF THE BOARD OF DIRECTORS OF

KONTIKI CONDOMINIMUMS

I, Richy Ethridge, President of the Board of Directors of Kontiki Condominiums Phase I, organized and existing under the laws of the State of Texas, hereby certify that the following is a true and correct copy of a Resolution adopted by the Board of Directors of the Corporation at a meeting convened and held on NOVEMBER 11, 2006, at which a quorum was present and voting throughout and that such resolution is now in full force and effect and in accordance with provisions of the charter and by-laws of the corporation.

NOW, THEREFORE, BE IT RESOLVED: that upon a vote of the Board of Directors, the Board approves accepting a loan from Christopher and Karra Crowley on behalf of Kontiki Condominiums Homeowners Association Phase I (KONTIKI) with the following terms:

· Chris and Karra Crowley have agreed to loan KONTIKI up to $150,000.00 for repairs required to cure potential safety hazards at Kontiki.

· The loan will be fully amortized over a four (4) year period with a fixed interest rate of 6% interest per annum.

· At any time, KONTIKI may repay the balance owed on the loan in full with no prepayment penalty assessed.

· This loan will be paid out to KONTIKI in $25,000.00 increments unless otherwise agreed to by all parties. Interest will begin on the date funds are delivered to KONTIKI and will only be charged on the amount delivered.

I further certify that this Corporation is duly licensed and existing, and has the power to take the action called for by the foregoing Resolution.

Dated:_______________ ___________________________

Richy Ethridge

President of the Board of Directors