SATURDAY JULY 01, 2006

COMMUNITY CENTER

Call To Order: President Potts called the meeting to order at 9:08 AM.

Attendance: J. Potts, D. Norris, D. Gleeson, P. Perry, D.Giggey,

Town Manager W. Fournier and approx 100 stockholders.

Reports: The FII, January 2005 – December 2005, Income/Expense and Balance statement was presented by J. Potts. Several questions were asked about various entries, by the stockholders present, and answered by President Potts.

Proposed By-Law Change: Subsequent to the Board’s desire to include Stockholders opinion in any decision to reduce the number of Stockholders Meetings from two to one, and align the date with the Columbus Day W/E Town Meeting, a period of open discussion was initiated. President Potts offered a background summary of what the Board was considering and why. A concern supported by several stockholders was that an October meeting could reduce the number of people able to attend and provide input. There did not appear to be any objection to the reduction in the number of meetings. At the conclusion of this open discussion period, President Potts confirmed that the views and opinions that were expressed would help determine any change in the date of future FII Stockholders Meetings.

FII Questionnaire Results: Dick Norris moderated a discussion of the survey, which was sent to all Frye Islanders, May 15, 2006. After outlining the concepts presented in the survey, Dick opened the discussion to the Stockholders. While many of the details of the survey were accepted as informative and of interest to other Boards of Frye Island, Question II C, and D, generated some discussion. 71% of the 287 survey respondents showed support for further development of the idea selling a valuable waterfront lot to purchase a number of inland lots to reduce the total number of buildable lots on the Island. Several stockholders present voiced their concern that the FII Board had (a) established a different agenda, and subsequently different ideas from the other somewhat coordinated agendas and general understanding between the operations of the different Boards on the Island, (b) constructed the survey questions to produce a certain bias, (c) used the proposal to violate the expectation that all Stockholders entrusted the FII Board to pass assets to the Town to offset various building and other capital improvements, and (d) presented the survey in such a way that the Stockholders had no idea what it was that they were participating in. Other opinions offered questioned potential tax liability.

This portion of the meeting was interrupted with the following motion:

It was moved by stockholder Mark Thomas and seconded by stockholder Bryan Nisula that from now until the October 2007 FII Stockholder meeting no FII waterfront be sold as buildable lots without the express approval of the FII Stockholders. Motion passed with a very large majority, four stockholders opposed.

Election of Volunteers to the FII Board Of Directors:

a. Self Nominations received by the Town General Manager, with bios. and vision statements previously published in the FINS, were presented and accepted by the stockholders

b. Nominations from the Floor. There were none. Dick Giggey announced that he was withdrawing as a candidate for the FII Board.

c. Personal Statements were made to the Stockholders by each of the candidates.

d. Casting of Ballots was accomplished and the results declared. Returning to the Board are Dave Gleeson, Lot 385, Phil Perry, Lot 276 and Joe Potts, Lot 1633. Newly elected to the Board are Ed Charrette, Lot 79, and Bob Hannah, Lot 1631.

Adjourn Stockholders Meeting: President Potts moved to adjourn and a second was received from the floor. The motion passed.

Next Meeting Date, Board of Directors: Saturday July 8, 2007, 7PM; Location - Community Center.