March 2, 1999

Dear Ken,

Thank you for spending the time to educate me on the art of perpetual watches. The Movado Limited Edition Perpetual looks great and I am looking forward to seeing in the "flesh". I very much appreciate your offer to allow me to preview the watch prior to buying it. As we discussed, I will be very careful not to buckle the strap or damage the watch in any way prior to agreeing to purchase it for $4,500 (thanks again). Should I not wish to purchase the watch, I will return it to you within 5 days of receipt in the manner you described.

Sincerely,

Peter P. Buckley
Senior Managing Director
Bear Stearns
New York, NY