Gentlemen,

Today I finally received some information on the status of the work done to
date. I spoke to Hugo Alexandro at Cuatro Consultants. The property is
still in two parcels. Hugo has completed a platt to combine into one lot
and is ready to submit it to the city of San Marcos. He has also completed a
topographical survey and a tree survey. In addition, he has begun to
coordinate with the city on the replatting and a couple of easements on the
smaller parcel, as well as, beginning the work on the grading. Hugo is going
to fax me a written letter of the scope of work he has been engaged to
complete. The total cost of his services are estimated at $38,000 of which
$14,000 are due now for work completed.

We are trying to resolve the issues of outstanding work and bills incurred by
the original developer so we can obtain the title to the land. If we can
continue to use Cuatro then it would be one less point of contention. Hugo's
number is 512-295-8052. I thought you might want to contact him directly and
ask him some questions. I spoke to him about the possibility of your call
and he was fine with that.

Now we are going to try and determine if any of the work performed by Kipp
Flores can be used.

Keith and I appreciate you meeting with us on Sunday. We left very
optimistic about the prospect of working with you on this project.

Call me with feedback after you speak to Hugo or with any other ideas about
moving this project forward.

Phillip