Document:

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THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED
OF UNTIL A REGISTRATION STATEMENT WITH RESPECT THERETO IS DECLARED EFFECTIVE
UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL TO THE COMPANY THAT
AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS AVAILABLE.

                               AMEDORE HOMES, INC.
                                 Promissory Note

                                   $1,450,000

                  Amedore Homes, Inc., a New York corporation (the "Company")
for value received, hereby promises to pay to the order of George A. Amedore,
Sr. (the "Holder"), on demand (the "Due Date"), the principal sum of One million
four hundred-fifty thousand ($1,450,000) Dollars (or such lesser principal
amount as may then be outstanding). The principal amount of the Note may be
prepaid by the Company, in whole or in part, without premium or penalty, at any
time.

                  If the Company shall fail to make the payment of principal on
the Due Date; or shall make an assignment for the benefit of creditors, file a
petition in bankruptcy, be adjudicated insolvent or bankrupt, suffer an order
for relief under any federal bankruptcy law, petition or apply to any tribunal
for the appointment of a custodian, receiver or any trustee for the Company or
any substantial part of his assets or shall commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or
liquidation law or statue of any jurisdiction, whether now or hereafter in
effect; or if there shall have been filed any such petition or application, or
any such proceeding shall have been commenced against the Company which remains
undismissed for a period of thirty (30) days or more; or if the Company, by any
act or omission shall indicate consent to, approve of or acquiescence in any
such petition, application or proceeding or the appointment of, a custodian,
receiver or any trustee for all or any substantial part of its properties, or if
the Company shall suffer such custodianship, receivership, or trusteeship to
continue undischarged for a period of thirty (30) days or more, or the Company
violates any term or provision of this Note and same remains uncured for a
period of 15 days after notice thereof, then and in any such event (each such
event, an "Event of Default"), the outstanding principal amount of this Note
shall be and become immediately due and payable.

         Payments of principal and premium, if any, are to be made in lawful
money of the United States of America at the principal office of the Company.

                  1.       Restrictions on Transfer.

         The Holder acknowledges that he has been advised by the Company that
this Note has not been registered under the Securities Act of 1933, as amended
(the "Securities Act"), that the Note is being issued, on the basis of the
statutory exemption provided by Section 4(2) of the Securities Act relating to
transactions by an issuer not involving any public offering. The Holder
acknowledges that he has been informed by the Company of, or is otherwise
familiar with, the nature of the limitations imposed by the Securities Act and
the rules and regulations thereunder on the transfer of securities. In
particular, the Holder agrees that no sale, assignment, hypothecation or
transfer of this Note shall be valid or effective, and the Company shall not be
required to give any effect to any such sale, assignment, hypothecation or
transfer, unless (i) the sale, assignment, hypothecation or transfer of the Note
is registered under the Securities Act, and the Company has no obligation or
intention to so register the Note, or (ii) the Note is sold, assigned,
hypothecated or transferred in accordance with the requirements and limitations
of Rule 144 under the Securities Act, or such sale, assignment, or transfer is
otherwise exempt from registration under the Securities Act.

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                  2.       Covenants of Company.

         The Company covenants and agrees that so long as this Note shall be
outstanding, it will:

                  Promptly pay and discharge all lawful taxes assessments and
governmental charges or levies imposed upon the Company or upon its income and
profits, or upon any of its property, before the same shall become in default,
as well as all lawful claims for labor, materials and supplies which, if unpaid,
might become a lien or charge upon such properties or any part thereof;
provided, however, that the Company shall not be required to pay and discharge
any such tax, assessment, charge, levy or claim so long as the validity thereof
shall be contested in good faith by appropriate proceedings, and the Company
shall set aside on its books adequate reserves with respect to any such tax,
assessment, charge, levy or claim so contested.

                  Do or cause to be done all things necessary to preserve and
keep in full force and effect its corporate existence, rights and franchises and
comply with all laws applicable to the Company as its counsel may advise;

                  At all times maintain, preserve, protect and keep its property
used and useful in the conduct of its business in good repair, working order and
conditions, and from time to time make all needful and proper repairs, renewals
, replacements, betterment and improvements thereto, so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times;

                  Keep adequately insured by financially sound insurers, all
property of a character usually insured by similar corporations and carry such
other insurance as is usually carried by similar corporations; and

                  At all times keep true and correct books, records and
accounts.

                  3.       Miscellaneous.

                  3.1      All the covenants and agreements made by the Company
in this Note shall bind its successors and assigns.

                  3.2      No course of dealing between the Company and the
holder hereof shall operate as a waiver of any right of any holder hereof, and
no delay on the part of the Holder in exercising any right hereunder shall so
operate. Any such waiver must be in writing and signed by the Holder and the
Company.

                  3.3      This Note may be amended only by a written instrument
executed by the Company and the Holder hereof. Any amendment shall be endorsed
upon this Note, and all future holders shall be bound thereby.

                  3.4      All communications provided or herein shall be sent,
except as may be otherwise specifically provided, by registered or certified
mail: if to the Holder, to the address shown on the books of the Company; and if
to the Company, to: Amedore Homes, Inc. 1400 Dunnsville Road, Schenectady, New
York 12306, Attention: Chief Executive Officer, or to such other address as the
Company may advise the Holder in writing. Notices shall be deemed given when
mailed.

                  3.5      All agreements between the Company and the Holder
expressly are limited so that in no event whatsoever shall the amount paid or
agreed to be paid by the Company to the Holder hereunder exceed the higher
lawful contractual rate of interest permissible under the law which a court of
competent jurisdiction, by a final order which is not appealed or is
nonappealable, determines is applicable to this Note. If fulfillment of any
provision of this Note at the time performance of such provision becomes due
involves exceeding such highest lawful contractual rate, then such obligation
shall be reduced to such highest lawful contractual rate. If by any circumstance
the Holder shall ever receive as interest an amount which exceeds such highest
lawful contractual rate, any amount which may be deemed excessive interest shall
be applied as payment of the principal of the indebtedness evidenced hereby and
not as payment of interest. The terms and provision of this paragraph shall
control all other terms and provisions contained in this Note.

                                       2
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                  3.6      The provisions of this Note shall in all respects be
construed according to, and the rights and liabilities of the parties hereto
shall in all respects be governed by, the laws of the State of New York. This
Note shall be deemed a contract made under the laws of the State of New York and
the validity of this Note and all rights and liabilities hereunder shall be
determined under the laws of said State.

                  3.7      In the event that this Note is placed in the hands of
an attorney for collection, or in the event that any action be instituted on
this Note, or any action is taken with respect to a default hereunder, the
holder hereof shall be entitled to the payment by the Company and other party
liable for the obligations of the Company hereunder of all expenses in
connection therewith, including, without limitation, reasonable attorney fees.

                  3.8      The headings of the Sections of this Note are
inserted for convenience only and shall not be deemed to constitute a part of
this Note.

                  IN WITNESS WHEREOF, AMEDORE HOMES, INC., has caused this Note
to be executed in its corporate name by its Executive Vice President, and its
seal to be affixed hereto.

Dated:    February 29, 2000

                                         AMEDORE HOMES, INC.

                                         By: /s/ George A. Amedore, Jr.
                                             --------------------------
                                         George A. Amedore, Jr.
                                         Executive Vice President

                                       3<PAGE>

                                AMENDED AGREEMENT

             This Agreement, made this 19th day of January, 2000, between JEAN
M. HOFFMAN, residing at P.O. Box 448, Clifton Park, New York 12065 (hereinafter
referred to as "Seller"), and AMEDORE HOMES, INC., with offices located at 1400
Dunnsville Road, Schenectady, New York 12306 and GEORGE AMEDORE, residing at
125A Giffords Church Road, Schenectady. New York 12306 (hereinafter referred to
as "Purchaser").

                                   WITNESSETH

             WHEREAS, the Seller is the owner of 150+/- acres of real property
with frontage on Lapp Road and Moe Road in the Town of Clifton Park, County of
Saratoga and State of New York; and more particularly shown as Exhibit "A" to be
supplied by Seller and to be annexed hereto; and

              WHEREAS, Purchaser has the means and ability to plan and subdivide
lands and construct, market and sell residential housing units in the
subdivision; and

              WHEREAS, the parties desire to develop and sell the residential
units in accordance with the terms and conditions of this Agreement.

              NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES
HEREINAFTER SET FORTH, IT IS AGREED:

              1.       PURPOSE. The purpose of the parties is to develop and
improve a subdivision and to construct and sell residual units in said
subdivision.

              2.       APPROVES. It shall be the responsibility' of Purchaser to
file all applications and pay all fees and expenses including Engineering Costs
and legal fees to obtain all the necessary approvals for the subdivision and to
file the approved plan with the Saratoga County Clerk. Said approvals include,
but are not limited to, New York State Department of Health and Department of
Environmental Conservation, and Town of Clifton Park Planning Board. It shall be
Purchaser's responsibility to obtain all necessary permits and approvals for the
actual construction of the residential units including, without limitation, all
building permits and certificates of occupancy and to pay all fees and expenses
necessary therefore) and shall cooperate with the authorities having
jurisdiction of the subdivision project to comply with all SEQRA requirements
for the subdivision.

             3.        ENGINEERING.  It shall be the responsibility' of
Purchaser to provide and pay for all engineering expenses incurred for the
preparation of a boundary survey of the developed area of the subdivision,
showing all rights-of-way, easements and other physical burdens now encumbering
the land, and obtain final approval for the subdivision.

             4.        SUBDIVISION IMPROVEMENTS.

             a)           Subdivision. Purchaser shall be responsible for the
                          installation of all water, sanitary sewer, roads,
                          drainage, final grading, clean-up of debris and downed
                          trees, landscaping, maintenance and utilities for the
                          subdivision.

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             b)     Lot Development, Purchaser shall be responsible for the
                    development of any individual lot.

             5.     RIGHT TO CONSTRUCT RESIDENCE. Upon receipt of all the
necessary approvals for the construction of residential units, Purchaser shall
have the right to construct the residential units in said subdivision and to
install all improvements necessary to complete the development of the
subdivision including installation of water lines, sewer lines, roads and all
improvements required to complete this subdivision.

             6.     HOUSE CONSTRUCTION. Purchaser shall be responsible for
the construction of all units and payments of all costs attendant thereto,
including, without limitation:

             a)     Excavation for foundations and erosion control;

             b)     Construction of foundations and all necessary lot utilities;

             c)     Supplying all lumber, steel, insulation, windows, doors,
                    sheetrock, paint, wallpaper, floor coverings, cabinets,
                    countertops, concrete, concrete block, brick, stone, vinyl
                    siding, wood siding, roofing materials, pipe, plumbing
                    fixtures, plumbing supplies, electric wire, electric
                    boxes and connectors, electric devices, lights, appliances,
                    mirrors, tile, nails and any other materials necessary to
                    complete the construction of the units;

             d)     Supplying all labor to erect the units;

             e)     Purchaser shall construct the units in compliance with all
                    applicable federal, state or local building codes;

             f)     All materials and supplies used in connection with the
                    construction of a unit shall be new and both workmanship
                    and materials shall be of good quality;

             g)     Purchaser shall provide all required statutory warranties
                    for the construction and sale of the new homes, and

             7.     SALE OF UNITS. Purchaser may select a real estate broker or
agent to market the sale of units, or may sell through Purchaser's organization.

             8.     TRANSFER OF UNITS. Seller shall prepare, execute and deliver
all necessary documents, including deeds, to effectuate the transfer of a unit
to its ultimate purchaser, and shall pay the transfer taxes upon the sale price,
up to the price set forth in paragraph 11. All other transfer taxes shall be the
responsibility of the Purchaser or its grantees.

             9.     DEDICATION.  Seller shall, following their improvement by
Purchaser as required, convey all necessary roads, easements and said rights of
way to the Town of Clifton Park or such governmental authority which has
jurisdiction of the particular facility.

             10.    INSURANCE. Each party shall obtain adequate insurance to
protect itself, the other party and the subdivision from any foreseeable risk
arising from the activities provided for herein. Provided, however, that
Purchaser shall obtain a policy of insurance upon the construction of the units
themselves which names Seller as an additional insured.

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     11.    SALE PRICE.

     a)     Upon Purchaser obtaining all the necessary governmental
            approvals and filing of an approved subdivision map on
            the land containing 125 lots, shown on Exhibit "A",
            Purchaser shall pay the Seller Two Million Four Hundred
            Seventy Five Thousand and 00/100 Dollars
            ($2,475,000.00), Twenty Thousand ($20,000.00) Dollars
            per lot for 120 lots and Fifteen Thousand ($15,000.00)
            Dollars per lot for the remaining 5, which shall be
            payable as follows:

     i)     $10,000.00 on the execution of this agreement;

     ii)    $40,000.00 ninety days (90) from the execution of this
            agreement;

     iii)   $200,000.00 upon receipt of the governmental approvals
            referred to in paragraph 2 herein.

                                                           Total       Total
                                                           Lots       Credited
                                                           ----       --------
                                                                     $250,000.00
    iv)     Year 1 - 16 lots x $12,000.00 = $192,000.00     16       $442,000.00

                                                           Total       Total
                                                            Lots      Credited
                                                            ----      --------

            Year 2 - 16 lots x $12,000.00 = $192,000.00      32    $  634,000.00
            Year 3 - 16 lots x $17,000.00 = $272,000.00      48    $  906,000.00
            Year 4 - 16 lots x $18,000.00 = $288,000.00      64    $1,194,000.00
            Year 5 - 16 lots x $19,000.00 = $304,000.00      80    $1,498,000.00
            Year 6 - 16 lots x $20,000.00 " $320,000.00      96    $1,818,000.00
            Year 7-  16 lots x $21,000.00 = $336,000.00     112    $2,154,000.00

Year 8 - Balance of purchase price to wit $321,000.00 payable on or before
December 31, 2008. Any buildable lots in excess of 125 shall be paid for at the
rate of $20,000.00 each, if buildable lots are less than 125, then Purchaser
shall be credited with lots at the rate of $l5,000.00 each with the maximum
reduction at 5 lots at least 120 lots shall be purchased.

                                                            120    $2,400,000.00
                                                              5    $2,475,000.00

 b)          Seller shall prepare and execute deeds running to the Purchaser or
             Purchaser's grantee for lots, upon payment of the specified
             consideration. Conveyance shall be by warranty deed with lien
             covenant.

 c)          Any and all sums in addition to the price set forth in "a",
             received at the sale of an individual unit shall be paid to
             Purchaser, subject to the payments referred to herein.

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 d)          For the purpose of this contract, the lot configuration is based
             upon Map #97-29- LR, with the proposed lot layout as described by
             Environment Design showing 125 lots - Exhibit "B".

             12.      LOT PURCHASE SCHEDULE.

             a)       Purchaser shall, subject to the provisions of
                      paragraph 12(b) purchase at least sixteen (16) lots
                      each calendar year, commencing with the calendar year
                      2001, (year 1). Calendar year 2001 (year 1) shall for
                      the purposes of this agreement be the period from July 1,
                      2001 to March 15, 2002. The second calendar year shall be
                      from March 16, 2002, to December 31, 2002, each calendar
                      year thereafter shall commence on January 1 and extend to
                      the following December 31. Purchaser, however, shall have
                      the right to purchase more lots in any one year.

             b)       After the first year purchase of sixteen (16) lots,
                      purchaser may on two occasions, in any two calendar
                      years, elect to purchase a minimum of eight (8) lots.
                      Any such election shall extend the time for purchase
                      for one calendar year. The consideration schedule as
                      set forth in paragraph 11 (a), hereof, shall continue
                      and the purchase price of delayed lots, shall be at the
                      original price set forth.

             c)       Purchaser, shall, subject to the provisions of
                      paragraph 12(b), on or before December 31,2008,
                      purchase all the remaining property, which is the
                      subject of this agreement, including any lots not
                      previously conveyed.

             13.      CONDITIONS AFFECTING TITLE. The Seller shall convey and
Purchaser shall accept the property subject to all covenants, conditions,
restrictions and easements of record, and zoning and environmental protection
laws, so long as the property is not in violation thereof and any of the
foregoing does not prevent the intended use of the property for the construction
of single family residences.

             14.      TAX AND OTHER ADJUSTMENTS. Taxes and assessments shall be
apportioned to the Seller until Purchaser shall obtain Planning Board approval
and the premises are assessed as individual lots at which time Purchaser shall
assume the taxes and assessments upon the property.

             15.      RIGHT OF INSPECTION AND ACCESS. Purchaser and/or a
representative shall be given access to the property for any tests or
inspections required by the terms of this contract upon reasonable notice to
Seller or representative.

<PAGE>
             16.      REAL ESTATE BROKER. The Purchaser and Seller agree that no
real estate broker brought about the sale. Jean M. Hoffman is a licensed real
estate broker, but is participating in this sale as a principal.

             17.      ENVIRONMENTAL DISCLOSURE. Seller represents and warrants
that she had no knowledge of any deposit, storage, disposal, removal, burial,
discharge, spillage, uncontrolled loss, seepage or filtration or oil, petroleum
or chemical liquids or solids, liquid or gaseous products or any hazardous
wastes or hazardous substances (collectively "Hazardous Substances"), as those
terms are used in any appropriate and applicable law, code or ordinance
including, not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (CERCLA) at, upon, under or within the
Premises as a consequence of ownership or other use thereof prior to the closing
contemplated hereunder by Seller, her employees, agents or servants or any party
acting pursuant to a right or interest herein from Seller. Seller shall hold
Purchaser harmless from and indemnify Purchaser against all losses, damages,
costs (including reasonable attorney's fees), claims, causes of action and
liabilities arising out of or related to a breach of this warranty.

            In conjunction with this Article, if same shall be required by
            applicable law, code or ordinance, Seller agrees that she shall take
            any and all appropriate steps to register, file or disclose, in such
            manner and at such time as require thereby, pursuant to such
            applicable state or federal law, code or ordinance so as to comply
            therewith. If Seller shall be exempt therefore or shall claim
            exemptions, Seller shall provide Purchaser with an appropriate
            affidavit to that end which shall include an indemnity in favor of
            Purchaser should such exemption be disallowed or Seller shall have
            been required to so register, file or disclose and shall have
            wrongfully failed to do so.

             18.      NOTICES. All notices contemplated by this agreement shall
be in writing, delivered by certified or registered mail, return receipt
requested, postmarked no later than the required date, or by personal service by
such date to:

            Jean M. Hoffman                   and        John W. Tabner, Esq.
            P.O. Box 448                                 Tabner, Ryan and Keniry
            Clifton Park, NY 12065                       26 Computer Drive West
            P.O. Box 12605
            Albany, NY 12212-2605

            Amedore Homes, Inc.               and        Donald Zee, Esq.
            1400 Dunnsville Road                         1621 Central Avenue
            Schenectady, NY 12306                        Albany, NY 12205

                                              and

            George Amedore
            125A Giffords Church Road
            Schenectady, NY 12306

            19.     CONTINGENCIES.

             a) Following the execution of the Agreement Purchaser shall have
until March 15, 2000 to inspect the site and meet with the officials from the
Town of Clifton Park and any other involved agencies. Purchaser shall make
application to the Town of Clifton Park and any other agency for the necessary
approval to obtain subdivision approval for the project in the event that
Purchaser shall not obtain such approvals, then this Agreement, unless extended
by the parties, shall be null and void and all deposits shall be returned to
Purchaser. In such event, any and all studies, reports, surveys, title work
prepared on behalf of Purchaser shall become the property of the Seller and the
Seller shall return Purchaser's deposit.

             b) This Agreement is contingent upon Purchaser executing and
 completing a contract of purchase and sale with Seller for the purchase of 5
 residential lots. Any breach or violation of such contract shall be a breach of
 this contract.

            20.    ENTIRE AGREEMENT. The contract contains all agreements of the
parties hereto. There are no promises, agreements, terms, conditions,
warranties, representations or statements or other than contained herein. This
agreement shall apply to and bind the heirs, legal representatives, successors
and assigns of the respective parties. It may not be changed orally.

                                                   /s/ Jean M. Hoffman
                                                   -----------------------------
                                                       JEAN M. HOFFMAN

                                                   AMEDORE HOMES, INC.

                                                By:/s/ George Amedore
                                                   -----------------------------
                                                       GEORGE AMEDORE

                                                   /s/ George Amedore
                                                   -----------------------------
                                                       GEORGE AMEDORE

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