NOTE 13 - SUBSEQUENT EVENTS (1996)

In December 1996, the president of the Florida subsidiary resigned along with the remaining full time employees of this division. The Company has engaged and will engage a consultant to review administer the remaining contracts in progress, and follow up potential short falls and escrows relating to the projects, as funded under Florida's prior reimbursement plan.

Effective January 1, 1997 the Company will solicit, yet has to obtain, contracts under the new program and cannot reasonably predict the cash flow from this division. The effect of this may be to cease all current reserve in the Florida subsidiary. The Company has included in impairment loss one-half of the remaining value of goodwill recorded when this subsidiary was acquired as well as 100% of the remaining bonding premiums paid to provide funding under the prior method of funding these contracts.