Minutes - 13

This contract if made by you with me I propose to assign to
the Kirby Lumber Company, a corporation to be organized under the
Laws of the State of Texas which Company will undertake the full
performance of the contract on my part.

With respect to the financial responsibility of the Kirby Lumber Company
and its ability to perform the contract - I have to say that it is to be
organized with a cash working capital of Two Million five hundred
thousand ($2,500.000.00) dollars that it will have no mortgage or
other debts and that in addition to its cash capital stated above
it will own sixteen lumber mills well located in the heart of the
pine forests of Eastern Texas with stocks of lumber train roads
and other appurtentances and with a manufacturing capacity of
Two hundred million (200.000.000) feet per annum the present
cash value of these mills with property and appurtenances as
above is upwards of three million ($3.000.000.00) dollars and their
aggregate earnings amount to upwards of $740.000 per annum.
For the purpose of increasing the manufacturing capacity of this
company to the amount of 350.000.000 feet per annum it will
forthwith proceed to build five additional mills with a
capacity of 150.000.000 feet per annum.

Respectfully submitted
(Signed) John H. Kirby