Pelican Group of Lakes Improvement District
Minutes of Closed Meeting
Holiday Inn, Fargo, North Dakota
December 27, 2002

The closed meeting was called to order by President Lund. This closed session is authorized
under Minnesota Statute 13D for the purpose of attorney-client privileged communications related
to threatened litigation by Board member Noah and Robert Toussaint, including discussions of
possible settlement options.

Directors present were Lund, Meidinger, Horvick, Majkrzak, Crothers, Manuel and Poolman.
Board member MacLeod joined the meeting via conference telephone. Board member Noah
was excluded as an adverse party litigant.

After discussion the board moved to reject settlement proposals and to defend the lawsuit.

The meeting was adjourned at 3:30 p.m.

Respectfully Submitted,

Donald S. Meidinger
Secretary