Document:

<PAGE>

                      LETTER OF CONFIRMATION AND ASSIGNMENT

FROM:             514592 B.C. LTD. (Inc. #514592)
                  370 - 444 Victoria Street,
                  Prince George, B.C.

T0:               FOREST GLADE PROPERTIES INC. (Inc. #558539)
                  1033 - 3rd Avenue,
                  Prince George, B.C.

RE :              ASSETS OF 514592 B.C. LTD. - Mountainview Mobile Home
                  Park located in Sparwood British Columbia

--------------------------------------------------------------------------------

WHEREAS 514592 B.C. Ltd. ( a company duly incorporated under the laws of British
Columbia, Canada) is a holding company wholly owned and operated by Forest Glade
Properties Inc. ( a company duly incorporated under the laws of British
Columbia, Canada)

WHEREAS Forest Glade Properties Inc. is also a holding company wholly owned and
operated by Forest Glade International Inc. ( a company duly incorporated under
the laws of the United States of America).

WHEREAS the only asset of Forest Glade Properties Inc. is the shares which it
owns in 514592 B.C. Ltd. and the only asset of 514592 B.C. Ltd. is Mountainview
Mobile Home Park located in Sparwood, British Columbia.

WHEREAS Forest Glade International Inc. has applied for project financing from
certain third party interests in the United States of America who have insisted
that the company divest itself of the said mobile home park asset.

WHEREAS 514592 B.C. Ltd. has approved the transfer of all of its outstanding
shares from Forest Glade Properties Inc. to Michael Jenks, Gil Rahier Holdings
Ltd., Frank Denis and Wayne Loftus effective May 5, 2000 in order to comply with
the above.

WHEREAS 514592 B.C. Ltd. is currently in the process of finalizing the sale of
Mountainview Mobile Home Park to a third party by registered Agreement for Sale
which transaction is scheduled to complete on or about May 15, 2000.

<PAGE>

                                      -2-

514592 B.C. LTD. hereby confirms that all of the benefit of its 1 remaining
asset and all funds derived therefrom belong to and are hereby assigned to
Forest Glade International Inc..

SIGNED at the City of Prince George, Province of British Columbia, Canada this
5th day of May, 2000.

/s/ Wayne Loftus
--------------------------------------------------------------
Wayne Loftus, President

/s/ Frank Denis
--------------------------------------------------------------
Frank Denis, Secretary<PAGE>
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TITLE NUMBER:       PARCEL IDENTIFIER(S) NUMBER (PID):      DATE OF OFFER:
--------------------------------------------------------------------------------
XKZYY85             012-412-660                             May 2, 2000
--------------------------------------------------------------------------------
Seller:
--------------------------------------------------------------------------------

RECEIVED FROM 525560 B.C. Ltd., the Buyer

ADDRESS : RR #2, Site 33 Comp 9, 0504005 BC 0088140 PHONE 495-6948

THE SUM OF TWO HUNDRED THOUSAND DOLLARS CASH9           CHEQUE:

Being deposit on account of     Legal
The proposed purchase of        Description Lot 1, DL 4589, Kootenay District,
                                Plan 18084

Street Address                  100 Aspen Drive
City of Municip. of
Region of                       Sparwood, B.C. (the Property)
For the receipt of ONE MILLION ----------DOLLARS ($1,000,000)
(of which the deposit will form a part) PAYABLE ON THE FOLLOWING TERMS AND
SUBJECT TO THE FOLLOWING CONDITIONS, IF ANY:

1.       A portion of the purchase price in the amount of  $800,000.00  shall be
         secured by registration of an agreement for sale, in a form acceptable
         to the vendor's solicitors, acting reasonably. The amount owing under
         the agreement for sale shall bear interest at the same rate as
         mortgage XKOZYZYY and payments shall be made by the purchaser to the
         vendor on the dates and in the amounts required to be paid under
         mortgage XKZYZYY. The principal amount due under the agreement for sale
         may be paid in whole or in part without notice or bonus at any time.
         The purchaser shall not be permitted to assign the agreement for
         sale.

IN THE EVENT THE BUYER FAILS TO PAY THE DEPOSIT MONIES AS REQUIRED BY THIS
CONTRACT, THE SELLER MAY, AT THE SELLER'S OPTION, TERMINATE THIS CONTRACT. EACH
CONDITION, IF SO INDICATED IS FOR THE SOLE BENEFIT OF THE PARTY INDICATED,
UNLESS EACH CONDITION IS WAIVED OR DECLARED FULFILLED BY WRITTEN NOTICE GIVEN BY
THE BENEFITING PARTY TO THE OTHER PARTY ON OR BEFORE THE DATE SPECIFIED FOR EACH
CONDITION, THIS CONTRACT WILL BE THEREUPON TERMINATED AND THE DEPOSIT RETURNABLE
IN ACCORDANCE WITH THE REAL ESTATE ACT.
         THE BUYER OFFERS TO PURCHASE THE PROPERTY FOR THE PRICE AND ON THE
TERMS AND SUBJECT TO THE CONDITIONS HEREIN SET FORTH
1.       TITLE: Free and clear of all encumbrances except subletting
         conditions, provides, restrictions, exceptions and reservations,
         including royalties contained in the original grant or contained in
         any other grant or disposition from the Crown, registered or pending
         restrictive covenants and right-of--way in favor of utilities and
         public authorities, existing tenancies set out below, if any, and
         except as otherwise set out herein.
2.       COMPLETION: The sale will be completed on or before the Completion Date
         at the appropriate Land Title Office.
         (a)  Tender of payment of monies by the Buyer to the Seller will be by
              certified cheque, bank draft, cash or Lawyer's/Notary Trust
              cheque.
         (b)  All documents required to give effect to this Contract will be
              delivered in registrable form where necessary and shall be lodged
              for registration in the appropriate Land Title Office on or
              before Completion Date.
         (c)  Time shall be of the essence hereof, and unless the balance of
              the cash payment is paid and such formal agreement to pay the
              balance as may be necessary is entered into on or before the
              Completion Date, the Seller may at the Seller's option terminate
              this Contract and in such event the amount paid by the Buyer will
              be absolutely forfeited to the Seller on account of damages,
              without prejudice to the Seller's other remedies.

                                    COMPLETION DATE:  May 15, 2000

3.       COSTS: The Buyer will bear all costs of the conveyance and if
         applicable, any costs related to arranging a mortgage and the Seller
         will bear all costs of clearing title.
4.       POSSESSION:  The Buyer will have vacant  possession  of the  Property
         at 12 Noon on the Possession Date or subject to the following existing
         tenancies, if any: EXISTING MOBILE HOME PARK TENANTS TO STAY

                                    POSSESSION DATED:  May 15, 2000

5.       ADJUSTMENTS: The Buyer will assume and pay all taxes, rates, local
         improvement assessments, fuel, utilities and other charges from and
         including the date set for adjustments, and all adjustments both
         incoming and outgoing of whatsoever nature will be made as of the
         Adjustment Date.

                          ADJUSTMENT DATE: May 15, 2000

6.       RISKS: All buildings on the Property and all other terms included in
         the purchase and sale will be and remain at the risk of the Seller
         until 12:01 a.m. on the Completion Date. After that time, the Property
         and all included items will be at the risk of the Buyer.
7.       INCLUDED ITEMS: THE PURCHASE PRICE INCLUDES: any buildings,
         improvements, fixtures, appurtenances and attachments thereto and all
         blinds, awnings, screen doors and windows, curtain rods, tracks and
         valences, fixed mirrors, fixed carpeting, electric, plumbing, heating
         and air conditioning fixtures and all appurtenances and attachments
         thereto as viewed by the Buyer at the date of inspection.

         INCLUDING:  SEE PARA 7

                       VIEWED BY THE BUYER ON: May 2, 2000

         The property and all included items will be in substantially the same
         condition at Possession Date as when viewed by the Buyer.

8.       In this Contract any reference to a party includes that party's heirs,
         executors, administrators, successors, and assigns, singular includes
         plural and masculine includes feminine.
9.       THERE ARE NO REPRESENTATIONS, WARRANTIES, GUARANTEES, PROMISES OR
         AGREEMENTS OTHER THAN THOSE SET OUT IN THIS CONTRACT AND THE
         REPRESENTATIONS CONTAINED IN THE PROPERTY CONDITION DISCLOSURE
         STATEMENT IF ATTACHED ALL OF WHICH WILL SURVIVE THE COMPLETION OF THE
         SALE.

<PAGE>

10.      ACCEPTANCE: This offer or counter offer will be open for acceptance
         until 3 o'clock on May 5, 2000, and upon acceptance of the offer, or
         counter offer by accepting in writing and notifying the other party of
         such acceptance there shall be a binding Contract of Purchase and Sale
         on the terms and conditions set forth.

                              /s/Leo Shull                    525560   B.C. LTD
--------------------------------------------------------------------------------
(WITNESS)                     (BUYER)                          SEAL

--------------------------------------------------------------------------------
(WITNESS)                     (BUYER)                          SEAL (OCCUPATION)

<TABLE>
<CAPTION>

<S>      <C>
11.      Receipt of the above mentioned deposit is hereby acknowledged by the
         undersigned Agent.

         AGENT:  Gordon & Co.
         Agent's Address                                       Phone (Office)                  (Home)
                        --------------------------------------               -----------------       ---------------------
12.      The Seller (a) hereby accepts the above offer and agrees to complete
         the sale upon the terms and conditions set out above, (b) declares and
         represents that the Seller is:

         Resident of Canada / /        /X/ Non Resident of Canada / / as defined under the Income Tax Act.

         Seller's acceptance is dated May   , 2000 LISTING OR SUB AGENT                             Per
                                         --                             ---------------------------     ------------------

                                       /s/ Wayne F. Lofts                                  514592   B.C. LTD.
--------------------------------------------------------------------------------------------------------------------------
(WITNESS)                                 (SELLER)                                              SEAL

--------------------------------------------------------------------------------------------------------------------------
(WITNESS)                                 (SELLER)                                              SEAL (OCCUPATION)

Seller's Address                                       Phone (Home)                  (Work)
                 -------------------------------------             -----------------       ---------------------
</TABLE>

         [END OF PAGE ONE]

<PAGE>

                          CONTRACT OF PURCHASE AND SALE
                               ADDENDUM/AMENDMENT

                                                               MLB No.  N/A
                                                                      ----------
                                                             DATE: May 2nd, 2000
                                                                   -------------

                                   PAGE 2 OF 3

RE:  ADDRESS      100 ASPEN DRIVE, SPARWOOD, B.C.

LEGAL:   LOT 1, DL 4589, KOOTENAY DISTRICT, PLAN 18084
--------------------------------------------------------------------------------
FURTHER TO THE CONTRACT OF PURCHASE AND SALE DATED  May 2nd, 2000

MADE BETWEEN 514592 B. C. LTD. AS SELLER, AND 525560 B.C. LTD. AS BUYER AND
COVERING THE ABOVE MENTIONED PROPERTY, THE UNDERSIGNED HEREBY AGREES AS FOLLOWS:

"PARAGRAPHS 1 (TITLE) AND 2 (COMPLETION) ARE AMENDED BY ADDING THE FOLLOWING: IF
THE SELLER HAS EXISTING FINANCIAL CHARGES TO BE CLEARED FROM TITLE THE SELLER,
WHILE STILL REQUIRED TO CLEAR SUCH CHARGES, MAY WAIT TO PAY AND DISCHARGE
EXISTING FINANCIAL CHARGES UNTIL IMMEDIATELY AFTER RECEIPT OF THE PURCHASE
PRICE, BUT IN THE EVENT, THE BUYER MAY PAY THE PURCHASE PRICE TO A LAWYER OR
NOTARY IN TRUST, ON UNDERTAKINGS TO PAY AND DISCHARGE THE FINANCIAL CHARGES, AND
REMIT THE BALANCE, IF ANY, TO THE SELLER."

"PARAGRAPH 2 (COMPLETION) IS AMENDED BY ADDING THE FOLLOWING: IF THE BUYER IS
RELYING UPON A NEW MORTGAGE TO FINANCE THE PURCHASE PRICE THE BUYER, WHILE STILL
REQUIRED TO PAY THE PURCHASE PRICE ON COMPLETION DATE, MAY WAIT TO PAY THE
PURCHASE PRICE TO THE SELLER UNTIL AFTER THE TRANSFER AND NEW MORTGAGE DOCUMENTS
HAVE BEEN LODGED FOR REGISTRATION IN THE APPROPRIATE LAND TITLE OFFICE, BUT ONLY
IF, BEFORE SUCH LODGING THE BUYER HAS: (A) MADE AVAILABLE FOR TENDER TO THE
SELLER THAT PORTION OF THE PURCHASE PRICE NOT SECURED BY THE NEW MORTGAGE AND
(B) FULFILLED ALL THE NEW MORTGAGEE'S CONDITIONS FOR FUNDING EXCEPT LODGING THE
MORTGAGE FOR REGISTRATION AND (C) MADE AVAILABLE TO THE SELLER, A LAWYER'S OR
NOTARY'S UNDERTAKING TO PAY THE PURCHASE PRICE UPON THE LODGING OF THE TRANSFER
AND NEW MORTGAGE DOCUMENTS AND THE ADVANCE BY THE MORTGAGEE OF THE MORTGAGE
PROCEEDS."

2.       VENDOR COVENANTS TO SATISFY ALL OBLIGATIONS UNDER MORTGAGE XKOZYZYY AND
         TO SAVE HARMLESS AND INDEMNIFY PURCHASER WITH RESPECT TO ALL LOSS OR
         DAMAGE SUFFERED BY PURCHASER AS A CONSEQUENCE OF BREACH OF THIS
         COVENANT.
3.       VENDOR TO TAKE OR CAUSE TO BE TAKEN ALL STEPS REQUIRED BY ROYAL BANK TO
         MAINTAIN MORTGAGE XKOZYZYY IN GOOD STANDING AS MAINTAINING FIXTURE
         PERSONAL GUARANTEES.
4.       PURCHASER TO PAY APPLICABLE COST AND TAX.
5.       VENDOR TO PROVIDE ENVIRONMENTAL SITE PROFILE ON CLOSING.
6.       VENDOR TO PROVIDE  CONFIRMATION  OF NO LIABILITY FOR  STATUTORY TO
         CLOSING DATE FOR REVENUE CANADA, WCB, GST, EMPLOYMENT STANDARDS,
         BRANCH, SOCIAL SERVICES TAX

ALL OTHER TERMS AND CONDITIONS CONTAINED IN THE SAID CONTRACT REMAIN THE SAME
AND IN FULL FORCE AND EFFECT.
<TABLE>
<CAPTION>
<S>                                                                   <C>
X                                                                                       /s/ Wayne F. Loftu
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (SELLER)         514592 B.C. LTD.

X
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (SELLER)

X                                                                                       /s/ Leo Shull
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (SELLER)         522560 B.C. LTD.

X
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (SELLER)
</TABLE>

[END OF PAGE TWO]

<PAGE>

                          CONTRACT OF PURCHASE AND SALE
                               ADDENDUM/AMENDMENT

                                                             MLB No.  N/A
                                                                    ---- -----
                                                             DATE: May 2nd, 2000
                                                                   -------------
                                   PAGE 3 OF 3

RE:  ADDRESS      100 ASPEN DRIVE, SPARWOOD, B.C.

LEGAL:   LOT 1, DL 4589, KOOTENAY DISTRICT, PLAN 18084
--------------------------------------------------------------------------------

FURTHER TO THE CONTRACT OF PURCHASE AND SALE DATED  May 2nd, 2000

MADE BETWEEN 514592 B. C. LTD. AS SELLER, AND 525560 B.C. LTD. AS BUYER AND
COVERING THE ABOVE MENTIONED PROPERTY, THE UNDERSIGNED HEREBY AGREES AS FOLLOWS:

"PARAGRAPHS 1 (TITLE) AND 2 (COMPLETION) ARE AMENDED BY ADDING THE FOLLOWING: IF
THE SELLER HAS EXISTING FINANCIAL CHARGES TO BE CLEARED FROM TITLE THE SELLER,
WHILE STILL REQUIRED TO CLEAR SUCH CHARGES, MAY WAIT TO PAY AND DISCHARGE
EXISTING FINANCIAL CHARGES UNTIL IMMEDIATELY AFTER RECEIPT OF THE PURCHASE
PRICE, BUT IN THE EVENT, THE BUYER MAY PAY THE PURCHASE PRICE TO A LAWYER OR
NOTARY IN TRUST, ON UNDERTAKINGS TO PAY AND DISCHARGE THE FINANCIAL CHARGES, AND
REMIT THE BALANCE, IF ANY, TO THE SELLER."

"PARAGRAPH 2 (COMPLETION) IS AMENDED BY ADDING THE FOLLOWING: IF THE BUYER IS
RELYING UPON A NEW MORTGAGE TO FINANCE THE PURCHASE PRICE THE BUYER, WHILE STILL
REQUIRED TO PAY THE PURCHASE PRICE ON COMPLETION DATE, MAY WAIT TO PAY THE
PURCHASE PRICE TO THE SELLER UNTIL AFTER THE TRANSFER AND NEW MORTGAGE DOCUMENTS
HAVE BEEN LODGED FOR REGISTRATION IN THE APPROPRIATE LAND TITLE OFFICE, BUT ONLY
IF, BEFORE SUCH LODGING THE BUYER HAS: (A) MADE AVAILABLE FOR TENDER TO THE
SELLER THAT PORTION OF THE PURCHASE PRICE NOT SECURED BY THE NEW MORTGAGE AND
(B) FULFILLED ALL THE NEW MORTGAGEE'S CONDITIONS FOR FUNDING EXCEPT LODGING THE
MORTGAGE FOR REGISTRATION AND (C) MADE AVAILABLE TO THE SELLER, A LAWYER'S OR
NOTARY'S UNDERTAKING TO PAY THE PURCHASE PRICE UPON THE LODGING OF THE TRANSFER
AND NEW MORTGAGE DOCUMENTS AND THE ADVANCE BY THE MORTGAGEE OF THE MORTGAGE
PROCEEDS."

7.       PURCHASE PRICE INCLUDES =
          -    1974 ModULINE MONARCH MANUFACTURERS HOME, REG NO. 006420 VALUED
               AT $25,000.00
          -    TRACTOR VALUED AT $10,000.00
          -    LAWN MOWER VALUED AT $8,000.00

8.       VENDOR TO PROVIDE CONFIRMATION OF NO OUTSTANDING DEFICIENCIES OR WORK
         ORDERS FROM DISTRICT OF SPARWOOD OR ANY OTHER GOVERNMENT AGENCY WITH
         RESPECT TO CONTINUED OPERATION OF MOBILE HOME PARK ON PROPERTY
9.       VENDOR TO PROVIDE COPIES OF ALL PAD LEASES, PERMITS AND LICENSES
         RELATING TO OPERATION OF MOBILE HOME PARK
10.      PURCHASER TO MAKE ADDITIONAL PRINCIPAL PAYMENT UNDER AGREEMENT FOR
         SALE OF 145000.00 WITHIN 60 DAYS OF CLOSING. VENDOR AGREES TO APPLY
         SUCH PAYMENT TO REDUCTION OF BALANCE UNDER MORTGAGE XKOZYZYY

ALL OTHER TERMS AND CONDITIONS CONTAINED IN THE SAID CONTRACT REMAIN THE SAME
AND IN FULL FORCE AND EFFECT.
<TABLE>
<CAPTION>

<S>                                                                    <C>
X                                                                                   /s/ Wayne F. Loftus
--------------------------------------------------------                -------------------------------------------------------
(Witness)                                                               (SELLER)     514592 B.C. LTD.

X--------------------------------------------------------               -------------------------------------------------------
(Witness)                                                               (SELLER)
                                                                                   /s/ Leo Shull
X
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (BUYER)     525560 B.C. LTD.

X
--------------------------------------------------------               --------------------------------------------------------
(Witness)                                                              (BUYER)
</TABLE>

[END OF PAGE THREE]

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