Letter as received by tenants

October 10, 2008

To all Tenants:

As you might have heard Cambridge Apartments is in a bad financial problem due to the fire in March 2008 that the insurance company (Magna Carta) refuses to settle. Some money was repaid to the mortgage company (Bay View Mortgage) of Florida for up-front expenses. They will not release the funds or pay the bills. R & G Properties can no longer keep operating due to the number of delinquent rents and high utilities.

If you are up to date with your rent, we Thank You. Once again, we are sorry for the inconveniences that 2008 has brought.

We have a meeting with Vectren on Monday. We will try to work something out with for them not to turn off the electric. We have made them an offer of all the money we can get our hands on, but they keep rejecting our offers.

Each and every one of your need to be making plans for a alternative place to live if this should happen Monday.

Should this happen rents not used for the month of October will be prorated and returned.

We are sorry this has come to such a critical crisis. If you know someone at Vectren in a position that can help, let them know we want to pay our bill and will be able to once the insurance settlement is final. Until Monday and the meeting we have no further information to share.

Thanks and please except our apologies.

R & G Properties.

(This is the letter, verbatim, the tenants of Cambridge Apartments received on October 11. )