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Text of letter to Nye from hospital attorneys

June 26, 2007

The following is a letter from the office of McGrory and Schaefer, which represents Washington County Hospital on behalf of the Washington County Hospital Endowment Fund, to J. Michael Nye.




September 1, 2006

Re: Zoning Appeal/Case No. 21-C-06-23835 and 21-C-06-23826

Dear Mr. Nye:

I am authorized to deliver this letter to you and enter into the agreement contained in this letter on behalf of the Washington County Hospital Endowment Fund.

Background: On December 21, 2005, the Board of Zoning Appeals of Washington County, Maryland rendered a decision in Case No. BZA 2005-135 which granted the Washington County Hospital Endowment Fund, Inc. permission to, among other requests, develop a Hospital at the Robinwood Medical Campus located on the southwest side of Medical Campus Road, Washington County, Maryland ("Proposed Site"). In conjunction with the Endowment Fund's case the Robinwood Medical Center Condominium, Inc. filed a case designated as BZA 2005-134 requesting lot line variances. The Condominium's requests were also granted in a consolidated Zoning Decision. J. Michael Nye and others appealed that Zoning Decision to the Circuit Court for Washington County, Maryland ("Circuit Court"). Those appeals are pending in the Circuit Court as Case Nos. 21-C-06-23835 and 21-C06-23836. On August 16, 2006 a judge of the Circuit Court rendered a consolidated Opinion affirming the decision of the Zoning Board on three (3) of the four (4) issues in dispute. The Court remanded the sole remaining issue to the Zoning Board for clarification with instructions for such written clarification to be returned to the Circuit Court by September 15, 2006. Currently, a hearing is scheduled before the Zoning Board on September 12, 2006 to deliberate in open session and the Judge has assigned a hearing date of October 6, 2006 to hear arguments from the parties before rendering a final opinion on the sole remaining issue. It is possible the parties who filed the appeals, including J. Michael Nye, could file an appeal of the Judges August 16, 2006 Opinion and could file an appeal of the Judge's opinion on the sole remaining issue once it is rendered.

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Several weeks prior to the date of this agreement J. Michael Nye approached the Washington County Hospital Endowment Fund and represented to the Fund -

that he is the driving force behind the appeals of the Zoning decision in terms of interest, effort and funding;

that his interest in pursuing the appeals has waned; and

that he would be willing to discontinue his efforts and funding of the appeals upon reaching an agreement with Washington County Hospital Endowment Fund, Inc.

Purpose: The purpose of this document is to establish the terms of an agreement and make the agreement.

Terms:

1. J. Michael Nye agrees to promptly discontinue all direct and indirect efforts and funding of the appeals of the Board of Zoning Opinion issues in Cases BZA 2005-134 and BZA 2005-135 and the pending Cases before the Circuit Court bearing Cases Nos. 21-C-06-23835 and 21-C-06-23836 (together these Cases shall be referred to as the "Appeals"). Discontinuing all direct or indirect participation includes, but is not limited to:

providing any funding or advice or efforts to anyone to continue the Appeals;

making any public or private statement, written or verbal, in support of the Appeals.

2. At such times as the Board of Zoning Appeals renders its opinion on the sole remaining issue, J. Michael Nye or his attorney, William Wantz, plus the attorneys representing the Endowment Fund shall request a conference with the Judge of the Circuit Court of Washington County, Maryland who issued the August 13, 2006 Opinion. If granted, all counsel will request the Judge to:

waive the hearing scheduled for October 6, 2006; and

issue his Opinion on the sole remaining issue as soon as possible; and

only if Attorney William Wantz is legally able to do so, represent that all remaining appealing parties or at least J. Michael Nye will not pursue an appeal of the Judge's Opinion(s).

3. In the event the Opinions of the Circuit Court are not appealed by any eligible party, excluding Washington County Hospital Endowment Fund, Inc. and become final judgments as defined by Maryland law and the Maryland Rules of Procedure, the Washington County Hospital Endowment Fund will cause to be paid to J. Michael Nye the sum of Thirty Thousand ($30,000) Dollars within ten (10) days after the date of expiration of the right of any eligible party to file an appeal. J. Michael Nye agrees that he will not question or object to the source of funds so long as it is in the form of cash or money order, cashiers check or attorney's escrow check payable to J. Michael Nye.

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