June 12, 1986

Mr. Harlan Jacobs
2380 West Lake of the Isles Parkway
Minneapolis, Minnesota  55405

Dear Harlan:

As we agreed on April 18, 1986, Recovery Engineering is selling 50,000 shares of its Common Stock to you at a price of $.50  per share.   Your subscription for these shares at that time did not require payment.    In conjunction with Recovery Engineering's overall capitalization plan, we request that you send cash payment for the subscribed shares.  Please send a personal check for the full amount made out to Recovery Engineering Incorporated by June 19, 1986.

While I realize you have reviewed the business plan of Recovery Engineering and have had an opportunity to discuss it in depth with myself and Brian Sullivan, please call either Brian or our counsel Eric Madson of Mackall,  Crounse & Moore if you have  any further questions.

I look forward to your participation in this endeavor.