Dunes Hotels & Casinos Inc Watch

from 8-K 1 page John B. Anderson P.O. Box 1410 Davis, Ca 95617 March 28, 1997 R. Michael Flick Credit Specialist Federal Deposit Insurance Corporation P.O. Box 9349 Newport Beach, Ca 92658 Re: Shares of Cedar Development Co. Dear Mr. Flick: We Are in Receipt of Your Letter Dated March 18, 1997, Asserting a Right to Vote the Shares of Cedar Development Co., Owned by John and Edith Anderson ("Cedar Shares"). We Disagree With Your Contention That the Fdic Holds the Right to Assert Voting Control Over the Cedar Shares. We Will Continue to Conduct Our Business, Including Our Ownership of the Cedar Shares, as We Deem Appropriate Under the Circumstances. Please Understand That the Fdic Will Be Liable for Any Damages Should You Wrongfully Attempt to Exercise the Voting Rights to the Cedar Shares. Very Truly Yours, /S/ John B. Anderson John B. Anderson CC: Kummer Kaempfer Bonner & Renshaw Attn: Michael Bonner Calfee & Young, Pc Attn: Kent N. Calfee

from 8-K 1 page Cedar Development Co. P.O. Box 1410 Davis, Ca 95617 March 28, 1997 R. Michael Flick Credit Specialist Federal Deposit Insurance Corporation P.O. Box 9349 Newport Beach, Ca 92658 Re: Shares of Baby Grand Corp. Dear Mr. Flick: We Are in Receipt of Your Letter Dated March 18, 1997, Asserting a Right to Vote the Shares of Baby Grand Corp., Jba Investments, Inc., and J.A., Inc., Owned by Cedar Development Co. (Herein Collectively "Shares"). We Disagree With Your Contention That the Fdic Holds the Right to Assert Voting Control Over the Shares. We Will Continue to Conduct Our Business, Including Our Ownership of the Shares, as We Deem Appropriate Under the Circumstances. Please Understand That the Fdic Will Be Liable for Any Damages Should You Wrongfully Attempt to Exercise the Voting Rights to the Shares. Very Truly Yours, /S/ John B. Anderson John B. Anderson, President CC: Kummer Kaempfer Bonner & Renshaw Attn: Michael Bonner