Dear Mike:

Mr. Kent and I spoke today regarding our points in my letter to him relating
to the Contract.  Mr. Kent was very cooperative and agreed to make most of
the changes we have requested.  He is anxious to close on the lots very
soon, however.  In addition, he stated that in the event you cannot reach an
agreement with him after the purchase of the lots regarding the construction
contract itself, he would be willing to purchase the lots back at some
reduced rate, probably seventy five percent (75%), or allow you to sell the
lots to a third party provided the same restriction regarding the use of
Flair Construction applied.

I suggested to Mr. Kent that I prepare the revised Contract rather than Mr.
Larry Williams.  He agreed.  Therefore, I will draft up the new revised
Contract as soon as possible and will send you a copy first to review before
we forward it to Mr. Kent.  I intend on using the same Texas Real Estate
Commission Form that was initially used.

Unfortunately, however, I unexpectedly have to be in Austin, probably
Wednesday and Thursday.  Therefore, I will probably begin work on the
revised Contract next week.  Mr. Kent said that was no problem with him.

Very truly yours,



Donald S. Stirman
DSS/csb