RE:

Greg,

I mailed you a check for the full balance due to Kipp Flores.  I am not excited or optimistic about our case.  Too me, it is just a lesson learned.

Regarding Jeff Smith, I am ok with the idea of giving him an exclusive on his clients for four months.  I want him to be as motivated as possible to sell.  Did you discuss any strategies of how to package the property?  Sold once occupied or while in construction?  What sort of conditions would be required by a buyer?

Let me know

 -----Original Message-----

From:   Greg Thorse [ mailto:gthorse@keyad.com ]

Sent:   Tuesday, March 19, 2002 7:43 PM

To:     Allen, Phillip K.

Subject:        RE:

Phillip,

Jeff Smith and I spoke today for a long time. I am leaning towards some kind

of deal with him to market to his clients exclusively at a certain fee for a

four month period.  I can explain why I would have interest in this vs. our

conversation Monday about no exclusive. What are your thoughts? Because of

all that is going on this may be the best route if you want it sold ASAP

like you are saying.

Kipp, Flores @ about 5:00 today agreed to a $600.00 reduction which is

bullshit. So I have two options to get the lien released. 1) is to pay them

off less the $600.00 and do a mutual release of each party 2) is to pay them

in full without the $600.00 reduction under protest, with an agreement to

release the lien immediately. Option 2 allows us to go back at some time if

we feel it prudent and sue them for the full $12,000 over because we paid it

under protest. I like option 2 because it pays in full and I would rather

pay in protest rather then take a small reduction and agree to something I

don't agree with. Let me know what you think via e-mail.  I wil need the

check for the full amount sent to me payable to Kipp Flores, and I will

handle the protest and the release of lien immediately.

As far as Grande goes I need to talk to Michelle.  She has been out for two

days this week on vacation.  They have been wiring and moving forward as if

we agree to some kind of a deal so there haven't been any real delays yet.

I will need to wrap this up this week however when Michelle gets back.

Yes I think we will meet in San Marcos if you have time to continue to go

over things.

-----Original Message-----

From: Allen, Phillip K. [ mailto:Phillip.K.Allen@ubswenergy.com ]

Sent: Tuesday, March 19, 2002 3:54 PM

To: gthorse@keyad.com

Subject:

Greg,

Did you work things out with kipp,flores?

What about Grande?  Is there a contract that I need to sign?  Are we holding

them up on installation?

I will be in San Marcos next Wednesday if you need me for anything in

person.

Phillip

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