CONTACTS 
0201 - Knecht, Haley, Lawrence & Smith    415 896 6930 fax 0818
020101 - Ms. Anne M. Bevington, Esquire

SUBJECTS
SDS Business Development, Financing
Pier 11 Fender Reconstruction
Payment Arrangement

0605 -    ..
0606 - Summary/Objective
0607 -
060701 - Received ref DRT 1, from Ann asking that I call to discuss
060702 - status of marketing SDS.
060703 -
060704 -   Ann said UP and I agreed in September 1991 that UP would forbear
060705 -   from pursuing its indemnity claim arising from the Pier 11 project,
060706 -   for a period of 3 years.
060707 -
060708 -   My record shows on 910921 that these discussions took place and were
060709 -   to be confirmed by a letter to be signed by the parties, per
060710 -   ref SDS 11 0001.  However, I never received the letter, and so no
060711 -   particular understandings exist, other than that I intend to pay UP
060712 -   when possible.
060713 -
060714 -   Ann indicates in her letter today that UP claims an interest in SDS.
060715 -
060716 -   I disagree.  UP has a claim against me, and to the extent SDS
060717 -   produces revenue that can pay UP, they will receive such payment.
060718 -   Encumbering SDS per se, seems to diminish interest by others in
060719 -   contributing financing.  In any case, I am sure a reasonable posi-
060720 -   tion can be developed to protect UP.
060721 -
060722 -
060723 -
060724 -
0608 -