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KEALOHA: I will say I was uncomfortable when I read it as well; however, in listening to corp. <br /> counsel and the, Mr. Van Pernis about having sought corp. counsel's advice, I'm comfortable once <br /> the two items are stricken. The original email felt like testimony to me. <br /> CARR SMITH: Thank you. Anybody else? <br /> NEWBERG: Yeah, I would echo that as well. I trust corp. counsel in this regard, and, you know, <br /> let's stay within Sunshine and observe all the regulations as a group. <br /> CARR SMITH: Okay. I guess we will proceed then. Mr. Van Pernis, I would just like to let you <br /> know that I'm not comfortable; I do think that you have a conflict, I think that you've got a personal <br /> issue here, and I don't really like the way it's come across so far. I'm just going to remind you that <br /> the code of ethics requires fair treatment and then all people be treated in a courteous, fair and <br /> impartial manner, and if I feel like that's not happening or that you go out that boundary, then we'll <br /> deal with that, okay? Can you acknowledge <br /> VAN PERNIS: I believe I follow those instructions while we are representing the people of Kona. <br /> CARR SMITH: I don't know what instructions you are talking about. <br /> VAN PERNIS: The Board of Ethics rulings. <br /> CARR SMITH: It says—never mind, that's a whole other thing. Okay. Did you understand what I <br /> just said, though? <br /> VAN PERNIS: Well, if you would restate it, please? <br /> CARR SMITH: I said that I personally feel like, still feel like you have a conflict, and it's based on <br /> the way you acted and spoken to the applicants in the previous hearings. So I just wanted to mention <br /> that in the code of ethics it says that all people shall be treated in a courteous, fair and impartial <br /> manner. And if I feel like you are not doing that, then I will take action at that point. Do you <br /> understand that? <br /> VAN PERNIS: I understand that, but— <br /> CARR <br /> utCARR SMITH: Okay. <br /> VAN PERNIS: I do not believe that applied to asking questions of the various witnesses. <br /> CARR SMITH: Your line of questioning will be determinedwe'll, you need to, you need to be <br /> courteous. That's why we are all here; we are all here to help the community, okay? So we are not <br /> here to help certain people. All right, enough of all that. Let's proceed. <br /> 12 <br /> EXHIBIT C <br />