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<DIV>Hi All, Attached is a modified lease from Islesboro that we can use
as a working document tonight. We will go thru it and see what fits and
doesn't as a proposed document. </DIV>
<DIV>Also is attached a construction/buyback proposal that Alden is working
on. Also - just a draft. I have also opened it below in case
you could not open it as it is not a word document MG</DIV>
<DIV> </DIV>
<DIV>
<DIV class=Section1>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Hi again
Mark,<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">I\u2019m starting by attacking section 6
of the IAP lease, which deals with construction. Surprisingly, most of the
existing language (sec. 6.4 especially) should work for us, even though IAP
didn\u2019t have new construction in mind when it wrote the lease. I\u2019m guessing
(ONLY guessing\u2026) that we\u2019ll want to think about three additional
provisions:<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<OL style="MARGIN-TOP: 0in" type=1>
<LI class=MsoNormal style="mso-list: l0 level1 lfo1"><FONT face=Arial
size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A provision that
states what kind of building the homeowner is permitted to build. We
could requre that the homeowner submit a building plan to get approved to
lease the land. Building to that specific plan could then be a condition
of the lease. We could make that as general or specific as we
wanted.<BR><BR><o:p></o:p></SPAN></FONT>
<LI class=MsoNormal style="mso-list: l0 level1 lfo1"><FONT face=Arial
size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">A provision that
states when the homeowner is required to start building, and when s/he would
have to finish building. For example, we could require construction to begin
within two years of signing the lease, and for the structure to be finished
according to the plans (occupancy permit?) within five years. That\u2019s
more time that most people would take, but it would allow flexibility while
letting YRHC to enforce its goal of getting a year-round home built on the
land.<BR><BR><o:p></o:p></SPAN></FONT>
<LI class=MsoNormal style="mso-list: l0 level1 lfo1"><FONT face=Arial
size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"> A provision
that assigns a transfer value to the structure while it\u2019s under
construction. If somebody can\u2019t finish it, the lease needs to state a
transfer value just as it would for a finished building. YRHC, or better
yet another eligible buyer, can then step in and take over
construction.<o:p></o:p></SPAN></FONT> </LI></OL>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">We\u2019ll also have to work out a final
transfer formula just like IAP\u2019s lease does. I\u2019ll write to you about them
separately.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Let me know what your thoughts are
about all this when you get a chance. Remember that these are just my
guesses and I really don\u2019t know what I\u2019m doing!<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Sorry this is so long. I\u2019ll
write you more as I get it down.<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Alden<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Here is my outline of section 6, for
your reference:<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><U><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt">Section 6: Buildings and Improvements: Ownership
and Transfer</SPAN></FONT></U><BR>6.1 Homeowner owns building and
improvements.<BR>6.2 Transfer price calculated according to Appendix
A.<BR>6.3 Sales process: <BR> A.) IAP may find an
approved buyer; <BR> B.) IAP may buy if it can't find a buyer;
<BR> C.) After 12 months, homeowner may sell to any buyer for
transfer price; <BR> D.) If IAP consents, buyer may list for
more than tranfer price, but balance goes to IAP.<BR>6.4 Construction and
repair: <BR> A.) Homeowner pays all
costs;<BR> B.) Lawful and
workmanlike;<BR> C.) Consistent with
lease;<BR> D.) No changes to exterior without IAP's
consent;<BR> E.) IAP gets to approve all plans and
building permits.<BR>6.5 Homeowner may make improvements but IAP may value
them at non-luxury equivalent.<BR>6.6 Homeowner documents costs with
receipts and invoices; IAP may inspect; Homowner's own labor valued at rate of
someone with comparable skills.<FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><BR><BR><o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial"><o:p> </o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">________________________________________________</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Alden
Robinson</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Island Institute
Fellow</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><st1:place w:st="on"><st1:City w:st="on"><FONT face=Arial
size=2><SPAN style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Town of Long
Island</SPAN></FONT></st1:City><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">, <st1:State
w:st="on">Maine</st1:State></SPAN></FONT></st1:place><o:p></o:p></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">(207)
837-0636</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"> <o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal><FONT face=Arial size=2><SPAN
style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">arobinson@islandinstitute.org</SPAN></FONT><o:p></o:p></P>
<P class=MsoNormal><FONT face="Times New Roman" size=3><SPAN
style="FONT-SIZE: 12pt"><o:p> </o:p></SPAN></FONT></P></DIV></DIV></FONT></FONT><BR><BR><BR><DIV><FONT style="color: black; font: normal 10pt ARIAL, SAN-SERIF;"><HR style="MARGIN-TOP: 10px">See what's free at <A title="http://www.aol.com?ncid=AOLAOF00020000000503" href="http://www.aol.com?ncid=AOLAOF00020000000503" target="_blank">AOL.com</A>. </FONT></DIV></BODY></HTML>