February 27, 2001

Via Fax

Mr. Alan Kent
Flair Construction Co., Inc.

RE: Proposed Unimproved Property Contract by and between Flair Construction
Co., Inc., as Seller, and Mike & Chris McConnell, as Buyer

Dear Mr. Kent:

We have read and reviewed the above referenced Contract.  On behalf of Mr. &
Mrs. McConnell we would like to make the following comments and suggestions.

Generally, our major concern is what happens if in the unlikely event Mr. &
Mrs. McConnell cannot reach an agreement with you regarding the construction
of their home?  The Homesite Reservation Agreement states that they must
sell the lots back to you as the Developer at seventy five percent (75%) of
the sales price if you, as the Builder, do not start construction within six
(6) months of the date the lots were purchased.  In such an event, Mr. &
Mrs. McConnell would lose a substantial amount of money.  Therefore, we
would like to know if you have any suggestions as to how to address this
problem.

We make the following specific comments regarding the Unimproved Property
Contract itself in chronological order.

1. Paragraph 2, Property.  As we discussed, we would like to get a copy of
the Deed Restrictions as soon as possible so as to make sure that Mr.
McConnell's house will not be atypical for this subdivision.

2. Paragraph 5, Earnest Money.  We suggest that the Earnest Money be paid to
the Title Company.

3. Paragraph 6, Title Policy & Survey, A.Title Policy (6).  In view of the
fact that The Lakes at Sterling Gate is a new subdivision, we have suggested
to Mr. & Mrs. McConnell that they request that the exception as to
discrepancies, conflicts, shortages in area or boundary lines, encroachments
or protrusions or overlapping improvements be deleted from their Owners
Policy of Title Insurance.  We understand that Mr. & Mrs. McConnell will
have to pay the additional cost for this exception to be deleted.  However,
before the Title Company will delete this exception it is necessary that a
survey of the lots being purchased be provided to the Title Company.  Do you
have or can you provide such a survey?

4. Paragraph 6, Title Policy & Survey, Notice to Seller and Buyer (6).  We
ask that this paragraph relating to your right to continue to show the
property for sale be deleted.

5. Paragraph 7, Property Condition (B).  We suggested to Mr. & Mrs.
McConnell that subparagraph one (1) be checked rather than subparagraph two
(2) reflecting that the Buyers are accepting the property in its present
condition.  Mr. & Mrs. McConnell intend on hiring an inspector and we
thought it may be a good idea for the inspector to have an opportunity to
inspect the property itself before construction.  Therefore, we ask that a
small option fee be put in to this paragraph and that Mr. & Mrs. McConnell's
inspector has thirty (30) days to check out the property accordingly.

6. Paragraph 8, Brokers Fees.  It is our understanding that Mr. Larry
Williams of Prudential, Gary Greene Realtors represents Flair Construction.
Therefore, we would ask for an affirmative statement that any brokers' fees
be paid by Flair accordingly.

7. Paragraph 11, Special Provisions.  It is written in that the closing on
these lots will be as soon as roads are in place or on March 1, 2001 which
ever is later.  However, we do not know what roads are being addressed and
think that this sentence needs far more specificity.  The second sentence
regarding Mr. & Mrs. McConnell's obligation to use Flair Homes has already
been addressed.  The third sentence regarding when construction must start
should be revised to give Mr. & Mrs. McConnell more time to hire an
architect, etc.  We would suggest one hundred and eighty (180) days.  Also,
once Mr. & Mrs. McConnell notify you that they are ready for construction we
believe you should be under an obligation to start construction thirty (30)
days thereafter.

8. Paragraph 13, Rollback Taxes.  As you know, if there was every an
agricultural, timber or other exemption on this property, this paragraph
states that any rollback taxes will be paid by Mr. & Mrs. McConnell.  We
want to make absolutely certain that no such exemptions exist.  Therefore,
if you could ask that Title Company to provide a Tax Certificate showing
that no exemptions exist before closing we would appreciate it.  If there
ever were such exemptions, we need to be made aware of that as soon as
possible.

9. Paragraph 18, Escrow.  As we indicated earlier, we believe the Earnest
Money should be paid to the Title Company.  Since the Earnest Money is in
excess of $50,000.00 and the closing date on the lots is somewhat uncertain,
we believe the Title Company should be asked to deposit the Earnest Money in
an interest bearing account and that Mr. & Mrs. McConnell should receive a
credit accordingly.

We would appreciate it if you could respond to each of our suggestions and
comments in this letter as soon as possible.  We know Mr. & Mrs. McConnell
are very much looking forward to working with you in connection with
construction of their home.

Very truly yours,



Donald S. Stirman

DSS/csb



cc: Mr. & Mrs. Mike McConnell (via E-mail)