EXHIBIT "D"
Notice to Membership:
1) Published in the February 2001 Issue - Shastina News
2) Posted Resolution 1-01 & MOU February 9, 2001 at all
Lake Shastina Bulletin Boards and in Administration Building Adopted March 14, 2001

TO: Environment Control Committee
FROM: Board of Directors
Lake Shastina Property Owners Association
DATE: March 14, 2001
SUBJECT: Memorandum of Understanding

Under the authority granted to it in ARTICLE IX, Section 9.1(d) of the Bylaws of Lake Shastina Property Owners Association, the Board of Directors hereby adopts the following "Association Rules" and directs the Environmental Control Committee to use these rules in the interpretation and enforcement of the Lake Shastina CC&R's.

The following Sections of the CC&R's are to be interpreted and enforced as follows:

Old Section 5.3. Meetings. The Committee shall meet from time to time as necessary to properly perform its duties hereunder. The vote or written consent of a majority of the Committee members shall constitute the action of the Committee and the Committee shall keep and maintain a written record of all actions taken. The Applicant shall be entitled to appear at any meeting of the Committee at which his or her proposal has been scheduled for review and consideration. The Applicant shall be entitled to be heard on the matter and may be accompanied by his or her architect, engineer and/or contractor. Other Owners whose properties may be affected by the proposed improvement (in terms of the view or solar access of the Applicant's and an adjacent Lot, noise or other considerations) shall also be entitled to attend the meeting. Reasonable notice of the time, place and proposed agenda for Committee meetings shall be communicated before the date of the meeting to any Applicant whose application is scheduled to be heard.

New Section 5.3. Meetings. The Committee shall meet from time to time as necessary to properly perform its duties hereunder. The vote or written consent of a majority of the

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March 14, 2001
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Committee members shall constitute the action of the Committee and the Committee shall keep and maintain a written record of all actions taken. The Applicant shall be entitled to appear at any meeting of the Committee at which his or her proposal has been scheduled for review and consideration. The Applicant shall be entitled to be heard on the matter and may be accompanied by his or her architect, engineer and/or contractor.

Other Owners whose properties may be affected by the proposed improvement (in terms of the view or solar access of the Applicant's and an adjacent Lot, noise or other considerations) should be notified in writing at least 10 days prior to the meeting and shall also be entitled to attend the meeting. Reasonable notice of the time, place and proposed agenda for Committee meetings shall be communicated before the date of the meeting to any Applicant whose application is scheduled to be heard.

Section 6.15. Fences

Old Section 6.15 (b). Fences may be constructed of rock, masonry, wood, or metal or a combination thereof. The fence, however, must be open in construction and must not unduly block views across the Lot lines. Solid fences are not permitted with the exception that a solid privacy fence may be erected around the perimeter of a patio or deck. Chain link and stock wire fences with mesh openings of 2-1/2 inches maximum are permitted provided that earth tone colored (brown, green) or natural finish (unpainted) metal fencing and posts are used. Hog or chicken wire fences and white-tipped steel posts are not permitted to be erected on any Lot for perimeter fences or garden enclosures.

New Section 6.15 (b). Fences may be constructed of rock, masonry, wood, or metal, or a combination thereof. The fence, however, must be open in construction and must not unduly block views across the Lot lines. Solid fences are not permitted, with the exception that a solid privacy fence may be erected around the perimeter of a patio or deck. Chain link fences with mesh openings of 2-1/2 inches maximum and stock wire fences with mesh openings of 2 X 4 inches maximum are permitted, provided that earth tone colored (brown, green), black or natural finish (unpainted) metal fencing and posts are used. Hog or chicken wire fences and white-tipped steel posts are not permitted to be erected on any Lot for perimeter fences or garden enclosures.

Add Section 6.15 (e). Fences shall not be allowed on that portion of a Lot that has a common property boundary with the golf course or the green belt that surrounds the golf

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course, without the express written approval of the Board of Directors of the Lake Shastina Property Owners Association.

Section 8.6 Signs

Add Section 8.6 (a) (i) Variances The Environmental Control Committee may grant Variances to Section 8.6 (a) Definitions, on a case by case basis, to meet the needs of the property owner, when such variances would not create an undue nuisance or hardship to the surrounding property owners.

Section 8.14. Parking and Vehicle Restrictions.

Old Section 8.14 (b). Campers, trailers, R.V.'s, boats and other recreational (non- standard passenger) vehicles may be kept on a lot, on a designated area with the location approved in writing by the Committee, until such time as the Association might provide a recreational vehicle storage area. Thereafter, all campers, trailers, R.V.'s, boats and other recreational (nonstandard passenger) vehicles must be moved to that storage area, or stored elsewhere outside the Properties, or stored inside an approved garage. The use of any of these items as an additional room is not permitted, unless a special circumstance exists and is approved by the Association.

New Section 8.14 (b). Campers, trailers, cars, R.V.'s, boats and other recreational (nonstandard passenger) vehicles may be kept on a lot until such time as the Association might provide a recreational vehicle storage area. Thereafter, all campers, trailers, cars, R.V.'s, boats and other recreational (nonstandard passenger) vehicles may be moved to that storage area, or stored elsewhere outside the Properties, or stored inside an approved garage. The use of any of these items as an additional room is not permitted, unless a special circumstance exists and is approved by the Association.

Old Section 8.14 (d). No stripped, unsightly, offensive, wrecked, junked, unregistered, unlicensed or dismantled vehicle or portions thereof, no furniture or appliances designed for normal use or operation within, as distinguished from outside, dwellings, and no building or construction materials or supplies shall be parked, permitted, stored, or located upon any street in the Properties nor on any Lot in such manner or location as to be visible to the occupant of other Lots or to the users of any street or park or to the users of the Lake except that building and construction materials in a quantity not in excess of that actually required for the improvement of the Lot upon which they are placed, may be

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maintained on such Lot for a period of time which is reasonably necessary for the diligent commencement and completion of the improvement project for which they are required.

New Section 8.14 (d). No stripped, wrecked, junked, or dismantled vehicles, or portions thereof, that are not under the process of restoration, nor any furniture or appliances designed for normal use or operation inside, as distinguished from outside dwellings, and no building or construction materials or supplies shall be parked, permitted, stored, or located upon any street in the Properties, nor on any Lot, in such manner or location as to be visible to the occupant of other Lots, or to the users of any street or park, or to the users of the Lake. Building and construction materials in a quantity not in excess of that actually required for the improvement of the Lot upon which they are placed, may be maintained on such Lot for a period of time which is reasonably necessary for the diligent commencement and completion of the improvement project for which they are required.

Old Section 8.14 (e). All driveways and garages shall be maintained in a neat and orderly manner.

New Section 8.14 (e). All driveways shall be maintained in a neat and orderly manner.

Old Section 8.14 (f). Garages are to be used for vehicle storage. It is recognized that at times, storage of items out of weather conditions is necessary (moving in boxed items, lumber, etc.): this shall be permitted, providing the Committee is made aware of the approximate time the garage is to be out of service.

New Section 8.14 (f). Garages are intended to be used for parking vehicles and for storage of personal items. If the garage space is converted to living space, (i.e. a game room, or additional bedroom), then another garage must be constructed to the specifications stated in Section 6.2 (a) of this Declaration.