THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700



January 3, 2003

03 00050 61 03010301




Mr. Garold L. Johnson
dynalt@dynalt.com
Dynamic Alternatives
PO Box 59237
Norwalk, CA 90652
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Subject:   SDS Records Plan Perform Report

Dear Gary,

Congratulations on this breakthrough in design and prototyping for improving SDS, reported in your letter today.
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In our discussion on December 21, 2002, we recognized delays that have impacted the schedule in the letter on November 25 for submitting a development plan on improving SDS. Despite these delays, progress today is a stunning success. Therefore, let's move the date for receiving the development plan from January 10, to February 5, 2003, and for now hold the other date of February 28 for agreeing on the scope of participation in the SDS project.
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In the meantime, please submit your SDS records to bring me up to date on progress, as further shown in my record today.

Thanks.
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Sincerely,



Rod Welch
rodwelch@pacbell.net