August 9, 2002

Dear Edgemere II Unit Owner:

This letter shall constitute official notice for a Special Meeting called by the Edgemere II Board of Directors to take place at the Annex Room of the East Hampton Public Library at 7:00 p.m. on Wednesday, August 28, 2002.

The purpose of this Special Meeting is to discuss a proposed Special Assessment, recently ratified by the Board of Directors, concerning the need to repave all asphalt areas of the condominium property, including roads, parking areas, and sidewalks. If approved, the project is scheduled to begin in late September.

The proposed paving project would cost a maximum of $154,500.00, depending on certain variables within the framework of the proposed contract with the successful bidder. The total of $154,500.00 includes any applicable taxes, building permits and consulting fees paid to a professional engineer to oversee the project. The Board of Directors is proposing to fund the project on a similar basis to that offered during the time of the Special Assessment for the siding project a few years ago. For those of you who owned a unit during the time the siding project was being funded, you will recall being offered a choice of a single lump sum payment at the beginning of the project or through participation in a loan, during which you would pay a fixed amount for 36 consecutive months. Should the unit owners ratify this proposed Special Assessment, the Board of Directors has made arrangements with the Savings Bank of Manchester (the same lending institution utilized for the siding project), to offer a similar program. The following table displays the proposed option available to each unit owner, depending on his/her unit type. We caution unit owners to understand that the following table represents proposed monthly payment amounts based on today's prevailing rates being offered by the Savings Bank of Manchester. The actual monthly payment may vary somewhat, based on the prevailing rate at the time of the closing.

Should this proposed Special Assessment pass, the Association contemplates beginning the 36 monthly payment option on October 1, 2002. For those choosing the single lump sum payment option, their payment would also be due October 1.

At the Special Meeting, consulting engineer, Tim Wentzell, will be available for your specific questions pertaining to the proposed paving project. Please bear in mind the proposed project and the accompanying loan option are the result of significant research and a competitive bid process. To insure obtaining the most competitive bids possible, the Board of Directors employed Mr. Wentzell to develop a project specification document, including the various "site specific" issues the successful bidder would have to deal with at Edgemere II.

After the project presentation, ballots will be distributed to vote on the proposed project. Should the project and the related financing be approved, correspondence will be sent to you during September outlining the exact payment options.

If you cannot attend this meeting, you can download a Proxy and have it taken to the meeting by a fellow Unit Owner or Board member.

We look forward to seeing as many of you as possible at this most important meeting.

Thank you for your attention.

Sincerely,

Richard Stern Property Manager

RS/kd

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