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t'll/IC - Southridge Estates Water General Partnership January 09, 1997 Dear Partners; A considerable amount of changes have taken place this year with Elim Water. Ann Hoch has converted all our debentures (12) to common stock to support a new direction for the company. Another change and most s igni f icant, is that the city has made an offer to buy Elim Water Company Incorpqrated. This time it appears that they are serious. There will be a Mandatory meeting January 19, 1997 at 1: 45, at Yellow Rock Hall on Hunter Road. All Currently active partners must at tend this meeting or provide a power of attorney for me to vote on your behalf. The maj ori ty stock holders have agreed to sell. At the last meeting we set a price for our stock and agreed to sell at that price. This meeting will be to conclude the necessary documentation to secure the sell of Elim Water to the Ci ty. Fo'llowing the meeting, there will be a party and appreciation session for all Elim shareholders at 2: 00 PM. A general party for all Elim associates will begin shortly afterwards. If you absolutely cannot attend the meeting, You must sign (all who own interest) the power of attorney, and have it notarized, and return it as soon as possible. I must have it in my hands before the meeting date. Return it to: SRHWGP clo Larry J. Hall 154 Park drive San Marcos Tx. 78666. A mail label is enclosed for your convenience. If you. have ; any quest ions, give me a call. Numbers where I can be -- reached are 1 i s t ed be low. Home 512-353-8347 Toll Free= 1-800-684-5451 Pin= 3750 To 11 Free Pager= 1- 888-233-7395 ID= 1913020 Work 512-396-4200 XT17 Regards L~ll Managing GP