TAHOE

Tahoe a couple weeks ago with my thoughts and recommendations. I have taken
some time to speak with you, Laura, Linda and Leslie regarding the objectives
and procedural issues surrounding Tahoe and offer the following:

First of all, it is very clear to me that everyone wants to achieve family
harmony surrounding these objectives and procedural issues. I am confident
this harmony can be achieved with good communication and the establishment of
mutual expectations.

Second, no one wants you to have second thoughts about gifting the cabin
because no. 1) it was a wonderful thing for you to do, no. 2) it protects
family assets from future taxation and no. 3) it underscores the need for all
of us to share in the cabin operating expenses.

Therefore, thank you for gifting the cabin. I suspect the anxiety felt had
everything to do with understanding the scope of the added financial
responsibility for the cabin operating expenses.

Thirdly, even though the gifting process has begun, everyone recognizes you
will continue to have preferential use of the cabin. The family can develop a
schedule around the stated times you want to use it.

With that being said, let me list the objectives and some procedural issues on
the cabin.

· Divide the cabin’s annual net loss or profit evenly between all
four
families. This is now estimated between $1500 and $2000 per year per family.

· Incremental variable expenses consisting of water, electricity, telephone
and gas should be paid by the family members and/or friends who use the cabin.
This does not have to be a complicated formula but rather a means to make it
fair for the families who do not make use of the cabin as much as others.
Without looking at the actual figures, I would suggest a figure of $3-$5 per
person per night type of thing. Cleaning would remain the responsibility of
the family using the cabin.

· Develop a means to discuss and approve cabin upgrades and allocate the
cost
for these upgrades to all four families or out of any operating surplus.

· Reserve the cabin for family during holidays and family vacations
throughout
the
year. I have listed some of these times below.

o Winter/Spring
§ Pre Christmas Week
§ Christmas/New Years Week
§ Martin Luther King Weekend
§ Presidents Weekend
§ Ski Week
§ Spring Break

o Summer/Fall
§ Memorial Weekend
§ 4th of July Weekend
§ Labor Day Weekend
§ Thanksgiving Week
§ Available Family Vacation time

· Establish a revolving priority selection process for specific times during

the year so each family will have the opportunity to use the cabin during
standard holidays such as Presidents’ Day weekend, Ski Week, Labor Day,
Memorial Day, Christmas and New Years. I propose the selection process could
occur every August/September for the Fall/Winter season, after we all have the
kids school schedules and every April/May after summer schedules are
established.

· Maintain the cabin schedule on an electronic calendar, which can be
updated
on a weekly basis and emailed to all the families and any realtors involved.
This responsibility for the updating of the calendar will rotate to each family

from year to year. I have offered to keep the calendar from January 2002- May
2003.

· Now that the net operating expenses are covered by the entire family, we
can
minimize the time the cabin is rented and make it more available for family and

friends. For instance, we may want to offer the cabin to families we have
rented to in the past but not spend our precious time trying to rent it, or
coordinate its rental, to the general market place.

· To assist with cabin management and in light of your tendency to travel, I

am willing to maintain an electronic record of cabin finances on Microsoft
Money and take responsibility for the payment of bills throughout the year.

I look forward to your feedback. I am confident the seven of us, who
essentially run our businesses, can work this out to everyone’s
satisfaction.
I have also attached the current cabin calendar for your review.