[Your letterhead, if desired; if not, your return address]

[Date of letter-month, day, and year]

[Recipient's first and last names]
[Company name]
[Street or P.O. box address]
[City, State ZIP code]

Dear [recipient's name]:

We are writing to confirm the intent of SAQ Industries, Inc. to enter into a contract with Waterside Corporation beginning on November 1, 2010. We understand that Waterside Corporation will provide the agreed-upon services to SAQ for the next 12 months thereafter. We also understandthat SAQ may renew the contract for additional 12-month periods of time thereafter if desired and upon notification to Waterside Corporation.

We will be initiating the formal contract documents within the next two weeks and will contact you at that time. If you have questions in the meantime, please contact us at (215) 753-1212. We look forward to this working relationship with Waterside Corporation.

Sincerely,

[Signature]

[Sender's first and last names]