Marc A. Jackson PPL Services Corporation

Manager – Real Estate Services Two North Ninth Street (TW-2)

Tel. 610-774-4707 Fax 610-774-4675 Allentown, PA 18101-1179

Mobile: 484-515-2278

Email:

VIA CERTIFIED MAIL

August 1, 2014

Mr. Robert W. Cogley, Jr.

1112 Nissley Road

Lancaster, PA 17601

RE: Indian Steps Cottages

Dear Mr. Cogley,

Based on recent developments, PPL Holtwood, LLC (“PPL”) would like to provide you with current information as it pertains to (i) your cottage lease on PPL owned land and (ii) the Holtwood land transfer project with the Lancaster County Conservancy (“LCC”).

In recent real estate settlements, PPL transferred approximately 676 acres to the LCC, including Kelly’s Run, Pequea North, Manor, Shenks Ferry and land near the Pinnacle Overlook. It is projected that two additional property settlements will occur between PPL and the LCC.

The majority of the land transferred from PPL to the LCC required the approval of the Federal Energy Regulatory Commission (“FERC”), and the necessary approvals were granted. Both the previous and projected future transfers between PPL and the LCC are part of a larger Susquehanna Greenway initiative to preserve land and wildlife habitat along the Susquehanna River.

Several properties to be transferred in future settlements to the LCC require a legal separation or “subdivision”. These subdivisions are needed based on PPL’s continued obligation to own land within a minimum 200 foot buffer area along the Susquehanna River as required by its operating license with FERC.

Initially, PPL believed that FERC would allow it to reestablish its FERC project boundary to exclude all cottages located along Indian Steps Road. Contrary to this assumption, the direction from FERC mandated that a minimum 200 foot buffer in this area must be retained by PPL. As a result of this ruling and the completion of property surveys, it was confirmed that several cottages along Indian Steps Road are within the buffer area. A formal subdivision was needed and the land remaining within the buffer area will continue to be owned by PPL, with land outside of the buffer area to be transferred to the LCC.

On May 28, 2014, the Lower Chanceford Township Board of Supervisors approved the Indian Steps Subdivision proposal submitted by PPL. In PPL’s efforts to secure the Township’s approval, the Township required either (i) proof that all improvements and septic systems on the property are in compliance with the Township Zoning Ordinances and Regulations or (ii) a commitment that all cottages will be removed within a five year period from the date of the Township’s subdivision approval. PPL expressed to the Township that its intention is to remove each of the cottage structures within the required time period established by the Township on property retained by PPL.

An additional provision was agreed to by both the Township and the LCC for those tenants whose cottage leases will transfer to the LCC. That provision allows for cottage owners, on land to be transferred to the LCC, to “be provided the option of meeting all conditions of a lease with the LCC, and securing Township approval for their septic system, at the cottage owners sole cost and expense, within two (2) years of LCTWP’s subdivision approval or those cottages will be razed within five (5) years of LCTWP’s subdivision approval”. LCC will not be utilizing the current PPL lease and will be providing copies of their required year to year lease and rent within the next few months. The continued tenancy is also subject to the LCC’s final approval.

Your cottage is located outside of the minimum 200 foot buffer area and as such will be transferred to the LCC in November. A representative from LCC’s real estate management company will be contacting you in the next few weeks to start the process of discussing options. Until settlement your lease with PPL remains in effect.

Should you have questions or require additional information from the LCC, please feel free to contact :

Kim Krynock

Residential Property Manager

Murry Management Co.

1899 Lititz Pike

Lancaster, PA 17601

Phone: 717-569-0491 ext. 165

Email:

Thank you very much for your time and continued patience throughout this transaction. It is very much appreciated.

Sincerely,

Marc A. Jackson