SPENDING ASSOCIATION TIME & ASSOCIATION FUNDS

November 19, 2013 To: Ms Moana Rose Vineyard Director of Community Management with Terra West Management Services & current President Gordon Shepard of Mesquite Vistas Community Association. This letter is in response to your email to me dated Tuesday November 12, 2013 asking for a variety of documents & information to be provided for the Board Packet executive session being held on Thursday November 21, 2013. I was just going to ignore this latest letter (they never seem to end) but I have decided to again take the time to answer on how I really feel. All your ongoing allegations take a great deal of time on both our Managers & Presidents end plus my time to keep replying. I know I have more important items to attend to then having to defend myself month after month. I would think the two of you could & should spend your time & efforts doing something positive for the association. In my opinion, you two should take a step back & look at the big picture & concentrate your time, actions & decisions on things that would benefit the association instead of diligently looking for a way to discredit a board member or owner that may have questioned how the association is being run which is their right. I keep wondering to myself why in several of our boards executive session meetings I continue to be targeted & questioned about these subjects that have been resolved. I have been a Mesquite Vistas Board Member for over (8) eight years & I vote in the affirmative with the board over 95% of the time, yet to me & others there seems to be a directed retaliation or vendetta towards me, my board position, even toward my career & profession. Plus the timing of this email request just days prior to the board election was no coincidence. I have questioned, tried to understand & put into perspective why there is this negative attitude towards me. So here are my thoughts. Could it be that: I questioned how the board could unanimously vote one month to go out for bids on the management contract & then surprise next month Terra West has a new one year contract including a 5% increase. Was there a board workshop called to discuss this important decision? Or was it voted on by email? If so I as a board member was not invited to be part of either. Could it be that: I questioned the business judgement decision to provide management a new contract with an increase with our current Community Manager that has a portfolio that includes (5) five other associations that she is responsible for, all of which are in Las Vegas, plus Ms Vineyard stated that she is available & here in Mesquite just two or three days a week. If I remember correctly, the original presentation from one of Terra Wests owners included a local full time Community Manager, plus a conference room at the

Mesquite office big enough to hold 50 plus owners for any meeting. Neither item has been delivered yet. Could it be that: I asked prior to & then at the actual board meeting that it would be a nice gesture to the (57) homeowners in attendance (the most ever to attend a Vistas Board meeting) to please move up their noted item on the agenda so that they did not have to sit through 3 or 4 hours listening to all the other agenda items. Mr President stated that he did not want to change the agenda, (which had been done on numerous occasions) due to the fact that it would not be fair to the few owners that were stated to be on the agenda first. An owner even asked if he would allow the board members to vote on reorganizing the agenda items & the President would not let that vote be taken. It could have happened, but instead you had 50 owners walk out of the meeting mad & upset with management & the board. With actions like this, it should not be a surprise to anyone that our owners have a very poor approval rating of both.

Could it be that: I questioned why board meetings (workshops) were being held on a regular basis, where opinions & decisions were being made? Why was no meeting notice given to owners? Then when owners wanted to come to a scheduled meeting it was suddenly cancelled. Even recently a (workshop) meeting was called with an email from the President that stated (only addressees are invited to attend). The Real Estate division provided this statement on (workshops) workshops are not allowed under NRS 116, all meetings of the board must be properly noticed & open to the members (except for closed sessions)I am aware that Mr Schulman provided a different take on the legality part of these meetings, but he was also very clear that these type meetings should not be held on a regular basis to discuss an upcoming meeting agenda (as they have been) & that there should not be any discussion that even comes close to voting or making decisions (unfortunately this has happened also). In my opinion, this questionable practice all could have been corrected to the owners by just a statement from the President/Management that stated that we apologize for our oversight & that we will make a change in the future. Instead you decided to dig in your heels & justify these meetings. Not a recipe for integrity or transparency. Could it be that: I questioned why an amazing amount of time & association funds (attorney fees) that were spent by our President/Management to call a special executive session meeting held on May 16, 2013 basically to throw me under the bus, with items like taking action against myself & my employer Masters Villas for mentioning the amenities of the Country Club & having a picture on our web site. Mr Schulman stated that Masters Villas had every right to do so. How about your idea of charging Masters Villas owners extra to use the Country Club, again Mr Schulman stated the association cannot do that unless they want to charge all Vistas owners the same. Then there was your bright idea to try to deannex Masters Villas out of Mesquite Vistas. This association pays into Mesquite Vistas

coffers $8400 each & every year or approximately over $120,000 since being in the association. Once again Mr Schulman stated that no way the association should pursue this. Really, all this time effort & money spent because you have a gripe or issue with me? Is this an effective use of our President/Managers time? It seems you have forgotten that an Association is a business & being in the business world for over 40 years I can see no viable or reasonable outcome to this path. Now, at this late date you must feel that your only play left is your Hail Mary attempt to discredit me on the election. This type of ongoing actions makes the association & management look bad. I could go on with many more examples of Could it be that type of situation but I wont. Now to your never ending latest attempt to either discredit me that you hope might sway the election or to somehow just get me off the Mesquite Vistas Board. In the October Mesquite Vistas Newsletter, I was curious because my name was not mentioned at all & the other two incumbent board members up for election had their names mentioned in bold 8 different times. Their bio & other information about them was also included in this so called newsletter, not a very good job in disguising an attempt to try to push the candidates that the two of you would like to prevail in the election. Please make note that I am sure none of the other board members were aware that any of this was taking place, I have respect & admiration for all the board members, however, obviously the individuals writing this newsletter/election material did so with a specific purpose in mind. Ms Vineyard noted in her email to me the word press. I did try my best to extend out an olive branch in the press to anyone I may have offended. This is what I wrote for Lets Talk Nevada on November 8, which was in response to an article written about the Mesquite Vistas election where my name was mentioned as well, I can only apologize. I have never intended to offend anyone with my opinions or demeanor; perhaps I have gotten animated in discussions about items that I care about as, first and foremost, a homeowner in Mesquite Vistas. Perhaps it is the result of frustration from having to defend myself over & over again against the conflict of interest claims that I have done everything possible to clear up. In any event, I truly apologize for any action that may have contributed to this perception; I pride myself in being transparent as a board member with no secret agenda. Apparently, my olive branch was added to their bon fire. Just as a curious side note if you read Mr McGreers comments at the end of the article he mentions that to be clear, I have reviewed several email messages between the HOA & its attorney on this issue WOW!!! I wonder who would have had access to emails between the association & the association attorney. I wonder who would want this information released to the press. If I remember correctly this type information is strictly confidential. Ms Vineyard & President Gordon I feel this is very important. Since you again are questioning my candidacy to run in this election, or even for me to serve on the Mesquite

Vistas Board, these are items that should be discussed or voted on in Regular Session not in the Executive Session. Your question of my conflict of interest has been before the Mesquite Vistas board on several occasions & it has always been discussed during the regular session. Ms Vineyard, you stated in your email that you are receiving corresponding requests from homeowners & board members about the three items listed in your email. These questioning or complaining requests should be provided to you in writing with a date & name, so that per NRS 11631.087, in my opinion, they can & should be listed on a future agenda. If the true reality is that you do not have them in written form then the complaints you have mentioned are just hearsay. I will look forward to reviewing with the rest of the board these owners complaints or questions at our next regular scheduled board meeting. I cannot believe that again, at the last minute our President & Manager have decided together to procure a legal opinion & spend more & more association funds to see if after 11 years of being in the Mesquite Vistas Association, Masters Villas Resort must be doing something illegal with their 20 votes. Masters Villas Resort has 20 votes because it pays for 20 doors just like any other owner. Just another questionable business decision by our President and Manager, which all owners within the Mesquite Vistas Association will have to pay for. Now to your conflict of interest claim, back in May when you again spent significant association funds to hold the executive session to throw me under the bus the only statement from Mr Schulman that you were somewhat successful with is his statement that in my opinion Rick Jones may have a conflict of interest, but it is upon Mr Jones to call that out if he feels he should do so. I did not mark the conflict of interest statement on my nomination form because I DO NOT HAVE A CONFLICT OF INTEREST I would ask Ms Vineyard, President Shepard or any other board member or owner to provide any instance where a vote I have placed or an action I have taken as a board member has been a conflict of interest for Mesquite Vistas because of my employment with Masters Villas Resort. After many years of being the board liaison to the Country Club, & spending countless hours helping to make that facility better for all owners, I resigned that position to help quell the conflict talking points, but even that is not good enough for this relentless tag team. I know that I do not have a conflict of interest because our current association attorney Mr Schulman prior to my election many years ago reviewed Masters Villas bylaws, CC& Rs & my personal management contract. In Mr Schulmans last paragraph he states to the board of directors I would advise you that the Master Association may allow Mr Jones to serve on the board of directors for the Master Association even though he is managing a timeshare which is subject to the Masters Associations governing docume nts. Mr Jones should have no liability for running & serving on the Board of Directors. I also have

statements from Masters Villas Resort attorney & from a noted professional in the HOA industry stating the same thing. Even just 3 or 4 years ago when this conflict of interest was brought before the board of directors attention in a regular session, after all the information was presented & reviewed the board made a motion then voted on, which passed unanimously that there was NO conflict of interest. Ms Vineyard also asked for the decision on this from the Real Estate Division. Ms Vineyard was forwarded an email from an owner that had placed a complaint with the Ombudsmans office about my conflict of interest. The final outcome of the complaint was that there was NO conflict of interest. Ms Vineyard, I kept my email didnt you keep yours? The ironic thing with this particular situation was that Ms Vineyard was behind me & on my side telling the owner that there was no conflict. I wonder what has changed in that short period of time; after all it is the same allegation. CAN IT BE ANY CLEARER THAN THAT, WHAT OTHER PROOF DO YOU NEED? I WILL NOT be providing to Ms Vineyard, President Gordon or the board, any of the documents that are being requested. If it is the desire to continue down this path thinking it is in the best interest of the Mesquite Vistas Association & continue to spend all owners assessments on this matter. I would just caution you to do so carefully. One last point regardless of the outcome of this election I will file an election procedure complaint with the Nevada Real Estate Division concerning the actions of Ms Vineyard & President Gordon Shepard. I will let the Division decide if Ms Vineyard & President Shepard are wrongfully attempting to influence an election. If that is proven to be the case those actions were taken to hurt myself in the election process. I think of myself as a reasonable & professional individual. I have sacrificed & given 8 years of service to Mesquite Vistas with the interest of all owners always in my mind. I dont think I deserve what these two individuals are trying to do to me. I am ready to move on, I just hope the two of you are. Rick Jones