AMERICAN REALTY TRUST INC, SC 13D/A, 1998-11-12

AMERICAN REALTY TRUST INC
SC 13D/A, 1998-11-12
REAL ESTATE OPERATORS (NO DEVELOPERS) & LESSORS

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<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(AMENDMENT NO. 38)

AMERICAN REALTY TRUST, INC.
(Name of Issuer)

COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)

029-177-409
(CUSIP Number)

ROBERT A. WALDMAN, 10670 N. CENTRAL EXPRESSWAY, SUITE 600, DALLAS, TEXAS 75231
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

OCTOBER 29, 1998
(Date of Event which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rules 13d-1(b)(3) or (4), check the following box [ ].

<PAGE> 2

CUSIP NO. 029-177-409 PAGE 2
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons

BASIC CAPITAL MANAGEMENT, INC. 75-2261065
- ----------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ................................................................................
(b) ................................................................................

- ----------------------------------------------------------------------------------------------
3) SEC Use Only ........................................................................

- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ..................................................

- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)
..............................................................................................

- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization NEVADA

- ----------------------------------------------------------------------------------------------
7) Sole Voting Power 5,727,474
Number of
Shares ----------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ----------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 5,727,474
Person
With ----------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 5,727,474

- ----------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
..............................................................................................

- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 53.3%

- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
</TABLE>

<PAGE> 3

CUSIP NO. 029-177-409 PAGE 3
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons

NATIONAL OPERATING, L.P. 75-2163170

- ----------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a) ................................................................................
(b) ................................................................................

- ----------------------------------------------------------------------------------------------
3) SEC Use Only ........................................................................

- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ..................................................

- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
..............................................................................................

- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization DELAWARE

7) Sole Voting Power 195,732
Number of
Shares ----------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ----------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 195,732
Person
With ----------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 195,732

- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 1.8%

- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) PN

</TABLE>

<PAGE> 4

CUSIP NO. 029-177-409 PAGE 4
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
THE GENE E. PHILLIPS CHILDREN'S TRUST 13-6599759

- ----------------------------------------------------------------------------------------------
3) SEC Use Only ........................................................................

- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ..................................................

- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
..............................................................................................

- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization TEXAS

- ----------------------------------------------------------------------------------------------
7) Sole Voting Power 98,332
Number of
Shares ----------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ----------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 98,332
Person
With ----------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 98,332

- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 0.9%

- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) OO

</TABLE>

<PAGE> 5

CUSIP NO. 029-177-409 PAGE 5
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
CONTINENTAL MORTGAGE AND EQUITY TRUST 94-2738844

- ----------------------------------------------------------------------------------------------
3) SEC Use Only ........................................................................

- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions) ..................................................

- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
..............................................................................................

- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization CALIFORNIA

- ----------------------------------------------------------------------------------------------
7) Sole Voting Power 820,850
Number of
Shares ----------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ----------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 820,850
Person
With ----------------------------------------------------------------------------
10) Shared Dispositive Power -0-

- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 820,850

- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 7.6%

- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) 00

</TABLE>

<PAGE> 6

AMERICAN REALTY TRUST, INC.
CUSIP NO. 029-177-409

ITEM 1. SECURITY AND ISSUER

Item 1 is hereby amended to read as follows:

This amendment relates to the Common Shares, $0.01 par value (the
"Shares"), of American Realty Trust, Inc., a Georgia corporation (the
"Company"), and amends the statement on Schedule 13D filed on June 12, 1998. The
principal executive offices of the Company are located at 10670 North Central
Expressway, Suite 600, Dallas, Texas 75231.

ITEM 2. IDENTITY AND BACKGROUND

Item 2 is hereby amended to read as follows:

This statement is being filed on behalf of Basic Capital Management, Inc.
("BCM"), National Operating, L.P. ("NOLP"), the Gene E. Phillips Children's
Trust (the "GEP Trust") and Continental Mortgage and Equity Trust ("CMET")
(collectively the "Reporting Persons").

BCM, NOLP, the GEP Trust and CMET may be deemed to constitute a "person"
within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as
amended, because BCM is beneficially owned by a trust established for the
benefit of Gene E. Phillips' children and the executive officers of CMET are
also executive officers of BCM. Gene E. Phillips is a general partner of Syntek
Asset Management, L.P. ("SAMLP"), which is the general partner of NOLP.

(I) BCM is a corporation organized and existing under the laws of the State
of Nevada. BCM's principal business activity is the provision of advisory
services for real estate investment trusts. Its principal place of business and
principal office is located at 10670 North Central Expressway, Suite 600 Dallas,
Texas 75231.

BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty
Advisors, Inc. is owned by a trust established for the benefit of the children
of Gene E. Phillips. The directors and executive officers of BCM are as follows:

<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Randall M. Paulson President

Thomas A. Holland Executive Vice President and
Chief Financial Officer

Clifford C. Towns, Jr. Executive Vice President - Finance

Karl L. Blaha Executive Vice President -
Commercial Asset Management

</TABLE>

<PAGE> 7

<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Steven K. Johnson Executive Vice President -
Residential Asset Management

Bruce A. Endendyk Executive Vice President

A. Cal Rossi, Jr. Executive Vice President

Cooper B. Stuart Executive Vice President

Dan S. Allred Senior Vice President -
Land Development

Robert A. Waldman Senior Vice President,
General Counsel and Secretary

Drew D. Potera Vice President, Treasurer
and Securities Manager

Mickey Ned Phillips Director

Ryan T. Phillips Director
</TABLE>

Mr. Paulson's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Paulson's present principal occupation is
President of BCM. Mr. Paulson is a citizen of the United States of America.

Mr. Holland's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Holland's present principal occupation is
Executive Vice President and Chief Financial Officer of BCM. Mr. Holland is a
citizen of the United States of America.

Mr. Towns' business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Towns' present principal occupation is Executive Vice
President - Finance of BCM. Mr. Towns is a citizen of the United States of
America.

Mr. Blaha's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Blaha's present principal occupation is Executive Vice
President - Commercial Asset Management of BCM. Mr. Blaha is a citizen of the
United States of America.

Mr. Johnson's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Johnson's present principal occupation is
Executive Vice President - Residential Asset Management of BCM. Mr. Johnson is a
citizen of the United States of America.

Mr. Endendyk's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Endendyk's present principal occupation is
Executive Vice President of BCM. Mr. Endendyk is a citizen of the United States
of America.

<PAGE> 8

Mr. Rossi's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Rossi's present principal occupation is Executive Vice
President of BCM. Mr. Rossi is a citizen of the United States of America.

Mr. Stuart's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Stuart's present principal occupation is Executive Vice
President of BCM. Mr. Stuart is a citizen of the United States of America.

Mr. Allred's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Allred's present principal occupation is Senior Vice
President - Land Development of BCM. Mr. Allred is a citizen of the United
States of America.

Mr. Waldman's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Waldman's present principal occupation is Senior
Vice President, General Counsel and Secretary of BCM. Mr. Waldman is a citizen
of the United States of America.

Mr. Potera's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Potera's present principal occupation is Vice
President, Treasurer and Securities Manager of BCM. Mr. Potera is a citizen of
the United States of America.

Mickey Ned Phillips' business address is 264 Rolling Hills Circle, Gaffney,
South Carolina 29340. Mr. M. Phillips' present principal occupation is owner of
Phillips Remodeling Co. Mr. M. Phillips is a citizen of the United States of
America.

Ryan T. Phillips' business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. R. Phillips' present principal occupation is an
independent real estate investor. Mr. R. Phillips is a citizen of the United
States of America.

(II) NOLP is a Delaware limited partnership engaged in the business of
investing in real estate and real estate related assets. The principal place of
business and principal office of NOLP is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231.

NOLP has no officers or directors. The general partner of NOLP is SAMLP.
The general partners of SAMLP are Syntek Asset Management, Inc. and Mr. Gene E.
Phillips who, through his position as a general partner of SAMLP, is a
controlling person of NOLP.

Mr. Gene E. Phillips' business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. G. Phillips' present principal occupation is
Chief Executive Officer and President of Syntek West, Inc. Mr. G. Phillips is a
citizen of the United States of America.

<PAGE> 9

(III) The GEP Trust is a trust formed under the laws of Texas for the
benefit of the children of Mr. Gene E. Phillips. The trustee of GEP Trust is Mr.
Gene E. Phillips' brother, Donald W. Phillips. Information with respect to Mr.
Gene E. Phillips is disclosed in (II) above.

Donald W. Phillips' business address is 10670 North Central Expressway,
Suite 515, Dallas, Texas 75231. Mr. D. Phillips' present principal occupation is
President and owner of Big D Oil Field Equipment Sales. Mr. D. Phillips is a
citizen of the United States of America.

(IV) CMET is a real estate investment trust organized and existing under
the law of the State of California. CMET's principal business activity is
investments in real estate. As of October 30, 1998, the Company owned 40.9% of
CMET's outstanding securities. The principal place of business and principal
office of CMET is located at 10670 North Central Expressway, Suite 600, Dallas,
Texas 75231.

The following is a list of each executive officer and trustee of CMET:

<TABLE>
<CAPTION>
Name Position(s) with CMET
- ---- ---------------------
<S> <C>
Randall M. Paulson President

Thomas A. Holland Executive Vice President, Chief
Financial Officer and Secretary

Karl L. Blaha Executive Vice President -
Commercial Asset Management

Steven K. Johnson Executive Vice President -
Residential Asset Management

Bruce A. Endendyk Executive Vice President

Robert A. Waldman Senior Vice President
and General Counsel

Drew D. Potera Vice President and Treasurer

Richard W. Douglas Trustee

Larry E. Harley Trustee

R. Douglas Leonhard Trustee

Murray Shaw Trustee

Ted P. Stokely Trustee

Martin L. White Trustee

Edward G. Zampa Trustee

</TABLE>

<PAGE> 10

Information with respect to Messrs. Paulson, Holland, Blaha, Johnson,
Endendyk, Waldman and Potera is disclosed in (I) above.

Mr. Douglas' business address is 3030 McKinney Avenue, #1201, Dallas, Texas
75204. Mr. Douglas' present principal occupation is President of Dallas Chamber
of Commerce. Mr. Douglas is a citizen of the United States of America.

Mr. Harley's business address is 8520 Breakers Point, Dallas, Texas 75243.
Mr. Harley is retired. Mr. Harley is a citizen of the United States of America.

Mr. Leonhard's business address is 13230 Hunters Lark, San Antonio, Texas
78230. Mr. Leonhard is retired. Mr. Leonhard is a citizen of the United States
of America.

Mr. Shaw's business address is 3713 Ebony Hollow Pass, Austin, Texas 78739.
Mr. Shaw's present principal occupation is Chairman of the Board of Stephen F.
Austin University. Mr. Shaw is a citizen of the United States of America.

Mr. Stokely's business address is 10670 North Central Expressway, Suite
515, Dallas, Texas 75231. Mr. Stokely's present principal occupation is General
Manager of Minority and Elderly Housing Assistance Foundation, Inc. Mr. Stokely
is a citizen of the United States of America.

Mr. White's business address is 8051 Coach Drive, Oakland, California
94605. Mr. Martin is Chairman and Chief Executive Officer of Community Based
Developers, Inc. Mr. White is a citizen of the United States of America.

Mr. Zampa's business address is Number Fifty Osgood Place, Suite 110, San
Francisco, California 94133. Mr. Zampa is General Partner of Edward G. Zampa and
Company. Mr. Zampa is a citizen of the United States of America.

During the last five (5) years, (i) none of the persons enumerated in (I)
through (IV) above has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) and (ii) none of such persons was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.

<PAGE> 11

ITEM 5. INTEREST IN SECURITIES OF THE ISSUER

Item 5(a), 5(b) and 5(c) are hereby amended to read as follows:

(a) SHARE OWNERSHIP

The following tables show the Shares owned directly and beneficially by the
persons named in Item 2 hereof on the date of this statement:

<TABLE>
<CAPTION>
Shares Owned Directly
---------------------

Number of Percent of
Name Shares Class (1)
- ---- --------- ---------
<S> <C> <C>
BCM 5,727,474 53.3%
CMET 820,850 7.6%
NOLP 195,732 1.8%
GEP Trust 98,332 0.9

TOTAL 6,841,387 63.6%
</TABLE>

<TABLE>
<CAPTION>
Shares Owned Directly
---------------------

Number of Percent of
Name Shares Class (1)
- ---- --------- ---------
<S> <C> <C>

BCM 5,727,474 53.3%
CMET 820,850 7.6%
NOLP 195,732 1.8%
GEP Trust 98,332 0.9%
Ryan T. Phillips (2)(3) 5,825,806 54.2%
M. Ned Phillips (2) 5,727,474 53.3%
Gene E. Phillips (4) 195,732 1.8%

Total shares beneficially
owned by Reporting Persons 6,841,387 63.6%
</TABLE>
- ------------------------

(1) Percentage calculations are based upon 10,755,584 Shares outstanding at
October 30, 1998. Total and addends may not match due to rounding.

(2) May be deemed to be the beneficial owner of Shares held directly by BCM by
virtue of the relationship to BCM described in Item 2.

(3) May be deemed to be the beneficial owner of Shares held directly by the GEP
Trust by virtue of the relationship to the GEP Trust described in Item 2.

(4) May be deemed to be the beneficial owner of Shares held directly by NOLP by
virtue of the relationship to NOLP described in Item 2.

<PAGE> 12

(b) VOTING AND DISPOSITIVE POWER

The Trustee of the GEP Trust has complete voting and dispositive power over
the 98,332 Shares held by the GEP Trust. Each of the Trustees of CMET share
voting and dispositive power over the 820,850 Shares held by CMET. Each of the
Directors of BCM exercise voting and dispositive power over the 5,727,474 Shares
held by BCM.

The following table lists the purchase transactions in the Shares that were
effected by the Reporting Persons during the past sixty days.

<TABLE>
<CAPTION>
Reporting Number of Price Type of
Person Date Shares Per Share Transaction
- --------- ---- --------- --------- -----------
<S> <C> <C> <C> <C>
BCM 08/31/98 1,000 $14.75 Open Market
BCM 09/03/98 20,000 $15.375 Open Market
BCM 09/09/98 200 $15.375 Open Market
BCM 09/11/98 1,400 $15.375 Open Market
BCM 09/21/98 600 $15.50 Open Market
BCM 09/22/98 600 $15.25 Open Market
BCM 10/05/98 400 $15.0625 Open Market
BCM 10/06/98 200 $14.9375 Open Market
BCM 10/06/98 200 $14.875 Open Market
BCM 10/06/98 3,000 $14.9375 Open Market
BCM 10/07/98 5,000 $15.00 Open Market
BCM 10/07/98 400 $14.9375 Open Market
BCM 10/08/98 3,000 $15.00 Open Market
BCM 10/08/98 5,000 $15.25 Open Market
BCM 10/08/98 400 $15.375 Open Market
BCM 10/08/98 13,000 $15.375 Open Market
BCM 10/08/98 10,000 $15.375 Open Market
BCM 10/09/98 13,000 $15.375 Open Market
BCM 10/12/98 700 $15.3125 Open Market
BCM 10/27/98 8,400 $15.50 Open Market
BCM 10/28/98 600 $15.50 Open Market
BCM 10/29/98 600 $15.25 Open Market
</TABLE>

ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.

Item 6 is hereby amended to read as follows:

BCM has pledged 46,711 shares to Advest, Inc., pledged 13,660 shares to
Ameritrade, pledged 100,000 shares to American Express Financial, pledged
128,109 shares to BA Investment Services, pledged 506,800 shares to Bear
Stearns, pledged 91,144 shares to Brown & Company, pledged 38,500 shares to
Christensen Burke, pledged 84,000 shares to CJ Lawrence, pledged 30,201 shares
to Cutter & Co., pledged 376,175 shares to Dean Witter, pledged 109,411 shares
to First Southwest Securities, pledged 20,000 shares to First Union Brokerage,
pledged 165,000 shares to Fleet Brokerage Services, pledged 177,000 shares to
Foothill Capital, pledged 475,000 shares to Grand Pacific, pledged 79,000 shares
to Gruntal & Company, pledged 96,000 shares to Hambrecht & Quist, pledged 68,889
shares to J.C. Bradford & Co., pledged 86,124 shares to Legg Mason (TX), pledged
25,500 shares to May Financial, pledged 116,437 shares to McDonald & Company,
pledged 271,500 shares to Morgan Keegan, pledged

<PAGE> 13

120,000 shares to Norwest Investment Services, pledged 810,000 shares to
Preferred Bank, pledged 370,758 shares to Dain Rauscher, pledged 76,400 shares
to Raymond James, pledged 89,052 shares to Regions Investment, pledged 96,000
shares to Robb, Peck, McCooey, pledged 97,000 shares to Robert Baird, pledged
121,363 shares to Southland Securities, pledged 78,500 shares to Southwest
Securities, pledged 22,400 shares to Tucker Anthony, pledged 9,600 shares to
Tucker Anthony (NY), pledged 260,000 shares to United Pacific, pledged 94,000
shares to Wachovia, pledged 161,124 shares to Wedbush Morgan and pledged 209,552
shares to Wheatfirst in stock margin accounts maintained by it with such
brokers.

BCM has also pledged 177,000 shares to Foothill Capital, pledged 260,000
shares to United Pacific, pledged 810,000 shares to Preferred Bank and pledged
475,000 shares to Grand Pacific pursuant to loan agreements with such lenders.

NOLP has pledged 195,732 shares to Lehman (NY) in a stock margin account
maintained by it with such broker.

CMET has pledged 820,850 shares to Dean Witter in a stock margin account
maintained by it with such broker.

GEP Trust has pledged 98,332 shares to Dean Witter (NY) in a stock margin
account maintained by it with such broker.

SIGNATURES

After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.

Dated: November 12, 1998

BASIC CAPITAL MANAGEMENT, INC.

By: /s/Drew D. Potera
-----------------------------------------
Drew D. Potera, Vice President

NATIONAL OPERATING, L.P.
By: Syntek Asset Management, L.P., General Partner
By: Syntek Asset Management, Inc., Managing General Partner

By: /s/Randall M. Paulson
-----------------------------------------
Randall M. Paulson, President

GENE E. PHILLIPS CHILDREN'S TRUST

By: /s/Donald W. Phillips
-----------------------------------------
Donald W. Phillips, Trustee

CONTINENTAL MORTGAGE AND EQUITY TRUST

By: /s/Randall M. Paulson
-----------------------------------------
Randall M. Paulson, President