January 13, 2001

Barbara Robbins
NorthStar Companies, Intl
Fax: 719-748-0190

Dear Barbara,

Karen and I contacted the Examining Board of Plumbers in Denver to inquire as to the status of the final gas inspection. We were told that no final would be performed until after the re-inspection fee had been paid by Gas Busters. Considering the fact that the original inspection failed the first part of December, what possible reason could Gas Busters and NorthStar have for not proceeding in a businesslike and professional manner to get this completed?

You have repeatedly pressured us to get to the closing table by asking the deliberately narrow question "Is there anything else wrong with the house that would prevent you from going to closing?" While asking this question, you knew, and concealed from us, that the house could not pass a final inspection from Park County. You also knew that we could not obtain a Certificate of Occupancy without that final. The failure of the final inspection on December 29th was directly and deliberately the fault of NorthStar.

According to Rocky Mountain and Grand West, the 4th Draw we signed in your office was not a direct draw on the construction loan. Since it appears we will be paying this directly, we want supporting documents for all charges listed. Supporting documents include but are not limited to: a statement showing itemization of expenditures as well as bills incurred and unpaid; in support of expenditures original proposals, change orders, check copies, receipted bills, lien waivers, and other satisfactory evidence of payment.

We expect this to be available in a timely manner. Once you notify us that it is ready, we will have it picked up at your offices.

  Michael Meadors
Karen Dudnikov
Fax: 719-632-9309
Phone: 719-539-8032