November 27,1999

Xxxx & Xxxxx Xxxxxxx
11111 Xxxxxxx Rd.
Xxxxx, NY 14006

Mr & Mrs. Xxxxxxx,

Please allow me to introduce myself, I am Robert A. Gerhard Ill. At this time, I am the managing principle in a development project being considered for your area. In furtherance of this project, I would hope to acquire the "right to purchase" certain properties. Toward that end, I would like to discuss with you the possibility of reaching an agreement for your property.

I have enclosed a copy of our standard Option to Purchase, which in plain language states, we would acquire an Option to Purchase your property for the amount of $XXX,XXX.00 (xxx xxxxxxx xxxxx-xxxxx thousand xxxx hundred xxxxx dollars), which is 2.5 (two and one half) times the tax appraisal. The following are the conditions of the option.

1. A $100 (one hundred dollar) payment at time of signing.
2. A $5000 (five thousand dollar) payment 120 days after signing. During this time, the suitability of the property will be determined. Soil samples and testing may be performed on your property. If the property is found unsuitable, the agreement will be discontinued.
3. The term of the option will be 48 months from the time of the $5000 payment.
4. When the option is exercised, (property is purchased) you may remain in the residence so long as you wish (life rights).
5. If you decide to relinquish the life rights, you will receive a one-time payment of $150,000 (one hundred fifty thousand dollars).

I would like to meet with you at your convenience to discuss this matter, and shall be contacting you in the upcoming week.

Sincerely,

Robert A. Gerhard III

Read the entire "Option Agreement" click here