Dear Mike:

On Friday, February 23, 2001 we received by fax a copy of the Residential
Construction Contract Mr. Kent intends on using in connection with the
construction of your home.  Upon receipt we noticed that it was not a Cost
Plus Contract.  Therefore, we spoke with him about this matter.  He
indicated that although he believes he will be doing the home on a cost plus
basis, no final agreement regarding this matter had yet been made.

The Residential Construction Contract form he uses is a Greater Houston
Builders Association form which is, for the most part, a good one although
it is written primarily to protect the builder.  Therefore, we may ask that
a number of minor changes be made to the Contract as it relates to notice
requirements to you regarding problems in construction and some changes in
the indemnity language.  In addition, there may be some other changes we
request.  Under any circumstance, we can dictate a letter to Mr. Kent at the
appropriate time.

Mr. Kent also indicated that he will make sure we receive a copy of the Deed
Restrictions as soon as possible.

We assume that you will acquire financing for the construction of the home
itself.  When you close, Flair Construction Co., Inc. will also have to
provide to you a Disclosure Statement which spells out some of your rights
and responsibilities under Texas law and a Contractors List of
Subcontractors and Suppliers which tells you the names and addresses of the
Subcontractors Flair intends on using.  We are sure that the construction
lender will require that these documents be provided at the appropriate
time.

Should you have any questions or comments, please call us.