LAW OFFICES OF

KNECHT, HALEY, LAWRENCE & SMITH

525 MARKET STREET, SUITE 3600

SAN FRANCISC0, CALIFORNIA 94105

TELEPHONE (415) 895-6930

FAX (415) 895-0818




March 15, 1995



Rod Welch
440 David Court, No. 1602
San Francisco, CA 94111

Re:  United Pacific Insurance Company
         Rod Welch Company-State of California
         Claim #074-74-01278
         Bond #U-781979
         Our File No. UPOO R02


Dear Rod:


Pursuant to your forbearance agreement with United Pacific (UP), UP is
requesting the financial information you were to provide at the end of 1994,
after the initial 3 years of forbearance. Please provide me with your financial
statements for 1994, along with any other information you would like UP to
consider in evaluating whether it will continue to forbear in pursuing its
indemnity rights against you.


I look forward to hearing from you very soon.


Very truly yours,


KNECHT, HALEY, LAWRENCE & SM1TH






Anne M. Bevington




AMB:cjf