March 6, 2001

Dear Kinston Manor Owner,

Our Annual Meeting was held on March 3rd and the Board would like to thank all those who took the time to attend and hope everyone returned home safely.

As always, many issues were discussed, however the main topic was "Focusing on Quality". As stated in the letter that accompanied the Meeting Notice...we are in our twentieth year and it is time to renew, replace and refurbish what the majority of owners have enjoyed over the years.

The REFURBISHMENT PLAN was passed unanimously by those that were in attendance and by nearly 75% of the proxy cards that were returned.

The statement that is accompanying this letter is for your annual dues as well as containing a special assessment for the Refurbishment. The $375.00 special assessment will be discounted to $365.00 if paid by April 30, 2001. If you wish...you can pay it in three semi annual installments of $125.00 with the first installment due April 30, 2001, the second will be due October 31, 2001 and the third and final payment due April 30, 2002. Payments not received by April 2002 will be charged late fees.

We are sure that everyone will be delighted with the comfort and the quality of their townhouse after the refurbishment is completed. We only ask that if you return for your week's) while the work is in process, please be patient and understanding...it will all be worth it.

Once again, on behalf of the other members, I would like to remind you that your annual maintenance fees and assessments are the only significant source for funds to cover the upkeep of your townhouse. By paying your annual fees promptly you are doing your part and fulfilling your commitment that every other member relies on to keep dues and collection costs to a minimum.

Best Regards,
KINSTON MANOR ASSOCIATION
Board of Directors