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<SEC-DOCUMENT>0000950123-09-071271.txt : 20100225
<SEC-HEADER>0000950123-09-071271.hdr.sgml : 20100225
<ACCEPTANCE-DATETIME>20091216164538
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-09-071271
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20091216

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENCORE WIRE CORP
		CENTRAL INDEX KEY:			0000850460
		STANDARD INDUSTRIAL CLASSIFICATION:	ROLLING DRAWING & EXTRUDING OF NONFERROUS METALS [3350]
		IRS NUMBER:				752274963
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1329 MILLWOOD RD
		CITY:			MCKINNEY
		STATE:			TX
		ZIP:			75069
		BUSINESS PHONE:		972-562-9473

	MAIL ADDRESS:	
		STREET 1:		1329 MILLWOOD RD
		CITY:			MCKINNEY
		STATE:			TX
		ZIP:			75069

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ENCORE WIRE CORP /DE/
		DATE OF NAME CHANGE:	19940420
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<HEAD>
<TITLE>corresp</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="font-variant: SMALL-CAPS"><B>ENCORE WIRE CORPORATION</B></FONT><BR>
<B>1329 Millwood Road<BR>
McKinney, Texas 75069</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Era Anagnosti<BR>
Division of Corporation Finance<BR>
United States Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Mail Stop 4631<BR>
Washington, D.C. 20549

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">Re:&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Encore Wire Corporation</B><br><B>
Form&nbsp;10-K for the Fiscal Year Ended December&nbsp;31, 2008</B><br><B>
Filed March&nbsp;10, 2009</B><br><B>
Definitive Proxy Statement on Schedule&nbsp;14A filed on March&nbsp;24, 2009</B><br><B>
File No.&nbsp;000-20278</B></TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear Ms.&nbsp;Anagnosti:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Encore Wire Corporation (the &#147;<B><I>Company</I></B>&#148;), has the following responses to the comments of the
Staff of the Division of Corporation Finance (the &#147;<B><I>Staff</I></B>&#148;) of the Securities and Exchange
Commission (the &#147;<B><I>Commission</I></B>&#148;) contained in your letter dated December&nbsp;2, 2009 to Daniel L. Jones.
The Company&#146;s responses are numbered to correspond to the numbers used to designate the Staff&#146;s
comments in your comment letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-K for the Fiscal Year Ended December&nbsp;31, 2008</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Item&nbsp;1. Business, page 1</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>General</B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Because of the nature of your business, the discussion about compliance with laws and
regulations regarding environmental matters appears to be missing. Please review your
disclosure to include information required to be disclosed in accordance with Item
1</I><I>01(c)(1)(xii)</I><I> of Regulation&nbsp;S-K, to the extent that such information is material. In
addition, please consider whether you need to include related risk factor disclosure.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response</B>: Although the Company is subject to a variety of federal, state and local laws
and regulations covering the storage, handling, emission and discharge of materials into
the environment, the Company does not believe that compliance with these laws and
regulations has had a material effect on the historical capital expenditures, earnings
and competitive position of the Company and its subsidiaries. While it is difficult to
estimate future environmental liabilities accurately, the Company does not currently
anticipate any material adverse effect on its capital expenditures, earnings or
competitive position as a result of compliance with federal,</TD>
</TR>


</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 2
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>state and local laws or regulations. The Company does not currently anticipate material
capital expenditures for environmental control facilities. Nevertheless, in future
filings, the Company will include a risk factor disclosure regarding the possibility
that compliance with applicable environmental laws and requirements could have a
material impact on its financial condition.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Raw Materials, page 3</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In accordance with Item&nbsp;</I><I>101(c)(1)(iii)</I><I> of Regulation&nbsp;S-K, in future filings please
disclose the sources of supply for the raw materials utilized in your business.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>Copper is the principal raw material used by the Company in manufacturing its
products, constituting nearly 90% of the dollar value of all raw materials used by the
Company. The Company obtains copper from miners globally and from commodity brokers.
The Company notes your comment and confirms that it will reflect these sources in future
filings.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Risk Factors, page 4</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please note that you should disclose all known material risks. In future filings,
please revise the first sentence to remove the word &#147;certain&#148; and delete the fourth
sentence in the introductory paragraph. If risks are not deemed material, you should not
reference them.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
make the revisions you requested.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In future filings, please consider expanding your risk factor disclosure to capture all
material risks that the company faces because of current market conditions and predicted
volatility. Please also try to avoid overly broad and boilerplate disclosure and provide
more specific information to focus on actual risks, including, but not limited to:</I></TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Providing qualitative and quantitative information to alert investors about
how the market downturn in the housing industry and the construction industry
in general, has affected and may affect your business and financial performance
(we note your results of operations for the quarter ended September&nbsp;30, 2009
reflecting lower net sales when compared to last year&#146;s net sales for the same
period); and</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>the effect that the increase on bad debt reserves has had or may have on
your business considering your customers&#146; credit risks (we note your disclosure
on top of page 14).</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 3
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
expand its disclosure to capture all material risks that the Company faces because of
current market conditions and predicted volatility.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Product Pricing and Volatility of Copper Market, page 4</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In future filings, consider revising this risk factor to discuss the fact that you do
not engage in commodity hedging activities.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comment and confirms that, in future filings, it will
revise this risk factor to discuss the fact that the Company does not engage in
commodity hedging activities. The Company&#146;s products are sold in a market in which
pricing can, and frequently does change on a daily basis. In theory, these wire prices
fluctuate in concert with copper, however, competitive issues can alter this
relationship. Hedging raw materials works when the end product
pricing is known in advance or fixed for defined periods of time, which
is not the case in the wire industry.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please tell us what consideration you have given to including risk factor disclosure
with respect to 52.62% of your stock being controlled by four shareholders. We note
disclosure on page seven of the definitive proxy filed with the Commission on March&nbsp;24,
2009.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company has considered the risk that 58.62% (not 52.62%) of the Company&#146;s
stock being controlled by four shareholders may have on the Company and the market price
of its common stock and will include, in future filings, disclosure identifying such
risks, as applicable.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Patent and Intellectual Property Disputes, page 5</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Based on your disclosure here, it appears that patented intellectual property may be
material to your business. If so, in future filings, please expand your Intellectual
Property Matters disclosure on page 4 to include information related to subparagraph
(c)(l)(iv) of Item&nbsp;101 of Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>Although the Company has filed patent applications with the United States
Patent and Trademark Office, it does not currently hold any patented intellectual
property. To the extent the United States Patent and Trademark Office grants the
Company&#146;s pending patent applications, the Company will supplement its future filings to
disclose its material patented intellectual property, as required by Item&nbsp;101(c)(1)(iv)
of Regulation&nbsp;S-K.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Executive Officers of the Company, page 6</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that in this section you have identified only two executive officers, Messrs.
Jones and Bilban; however, your proxy disclosure regarding executive compensation includes
also Messrs.&nbsp;Kieffer, Smith and Gottschalk. In future filings, please ensure</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 4
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>that you identify all of your executive officers and significant employees in accordance
with Items </I><I>401(b)</I><I> and (c)&nbsp;of Regulation&nbsp;S-K and provide their biographical information
pursuant to Item&nbsp;</I><I>401(e)</I><I>.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company has analyzed the roles and responsibilities of each officer of
the Company and has determined that Messrs.&nbsp;Jones and Bilban are the only two executive
officers of the Company. Additionally, the Company determined that Messrs.&nbsp;Kieffer,
Smith and Gottschalk are not employees of the Company who make or are expected to make
significant contributions to the business of the Company, which would require their
identification and disclosure of their background pursuant to Item 401(c) and (e)&nbsp;of
Regulation&nbsp;S-K. In prior filings, the Company erroneously included compensation
information for Messrs.&nbsp;Kieffer, Smith and Gottschalk because of a misunderstanding with
respect to which officers the executive compensation disclosure requirements of Item&nbsp;404
of Regulation&nbsp;S-K applied. The Company believed that it was required to disclose
compensation information for Messrs.&nbsp;Kieffer, Smith and Gottschalk because they were the
three highest paid officers of the Company, despite not being executive officers. In
future filings, the Company will remove the compensation discussion relating to Messrs.
Kieffer, Smith and Gottschalk from its Compensation Disclosure and Analysis. The
Company confirms that in future filings, it will ensure that it identifies all of its
executive officers and significant employees in accordance with Items 401(b) and (c)&nbsp;of
Regulation&nbsp;S-K and provide their biographical information pursuant to Item&nbsp;401(e).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Item&nbsp;7. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations,
page 11</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Liquidity and Capital Resources, page 15</B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In the last sentence of the carry-over paragraph on top of page 16 you state that as of
December&nbsp;31, 2008 there were no borrowings outstanding under the financing agreement. In
the middle of the fourth paragraph on the same page you also state that the total balance
outstanding under the financing agreement and the other debt instruments was $100&nbsp;million.
We note similar disclosure in your quarterly report for the period ended September&nbsp;30, 2009
(pages 13-14). In future filings, please clarify the outstanding balance for each credit
facility and debt instrument.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
clarify the outstanding balance for each credit facility and debt instrument.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Exhibit&nbsp;31.1 &#151; Chief Executive Certification</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Exhibit&nbsp;31.2 &#151; Chief Financial Officer Certification</B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>In future filings please remove the chief executive officer and chief financial
officer&#146;s title in the introductory line to each 302 certification.</I></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 5
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comment and confirms that, in future filings, it will
remove the chief executive officer and chief financial officer&#146;s title in the
introductory line to each 302 certification.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Definitive Proxy Statement on Schedule&nbsp;14A filed on March&nbsp;24, 2009</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Executive Compensation, page 8</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><U><B>Compensation Discussion &#038; Analysis, page 8</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>2008 Compensation, page 10</B></U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 0pt"><U><B>Base Salary, page 10</B></U>

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The disclosure in this section regarding the rationale for the salary increases is too
general. In particular, there is no discussion of how the general categories of factors
noted toward the end of the last paragraph translated into the salary increases. The
compensation discussion and analysis should be sufficiently precise to identify material
differences in compensation policies with respect to individual named executive officers.
Please refer to Section&nbsp;II.B.I. of Commission Release No.&nbsp;33-8732A and Item&nbsp;</I><I>402(b)(2)(ix)</I><I>
of Regulation&nbsp;S-K. In future filings please revise your disclosure accordingly.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
revise its disclosure accordingly. However please note, as discussed in the Company&#146;s
response to your comment number 10, Messrs.&nbsp;Jones and Bilban are the Company&#146;s only
executive officers. Given that the Company has only two executive officers, the
Company&#146;s compensation committee has not developed materially different compensation
policies regarding their salaries.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">12.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>The precise nature of your benchmarking is not clear. In future filings, if you have
benchmarked salaries (and other elements of compensation) against a peer group, please
identify the companies that comprise this group and discuss how actual payments compared to
the group. Refer to Item&nbsp;</I><I>402(b)(2)(xiv)</I><I> of Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, to the
extent that the Company benchmarks salaries (and other elements of compensation) against
a peer group, it will identify the companies that comprise this group and discuss how
actual payments compared to the group.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Cash Incentive, page 11</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">13.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note your disclosure that the discretionary cash incentive bonuses were based
primarily on &#147;each named officer&#146;s contribution&#148; to the company&#146;s profitability. In future
filings please provide a quantitative and qualitative disclosure of the compensation
committee&#146;s analysis of each named officer&#146;s contribution to the company&#146;s profitability
and how those contributions resulted in objective pay determinations. Please note that to
the extent that the compensation committee&#146;s</I></TD>
</TR>


</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 6
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><I>&nbsp;</I></TD>
    <TD width="1%"><I>&nbsp;</I></TD>
    <TD><I>decisions regarding discretionary cash awards were based upon a subjective evaluation, in future
filings please disclose each named executive&#146;s personal objectives by also identifying the
specific contributions made by each named executive and contextualize those achievements
for purposes of demonstrating how they resulted in specific compensation decisions.
Although quantitative targets for subjective or qualitative assessments may not be
required, you should provide insight into how qualitative inputs are translated into
objective pay determinations. Please refer to Item&nbsp;</I><I>402(b)(2)(vii)</I><I> of Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
provide a quantitative and qualitative disclosure of the compensation committee&#146;s
analysis of each named executive officer&#146;s contribution to the Company&#146;s profitability
and how those contributions resulted in objective pay determinations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Equity Incentive, page 11</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">14.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>We note that the named executives were granted performance-based stock options;
however, your CD&#038;A provides minimal, if any, analysis as to how the ultimate level of these
equity awards was determined and how the performance of the named executives was measured.
For each named executive officer, please provide in your future filings a substantive
analysis and insight into why the compensation committee determined that the levels of
equity compensation were appropriate in light of the factors considered in deriving those
payouts. Please refer to Items </I><I>402(b)(2)(i)</I><I>-(iv) &#038; (vii)&nbsp;of Regulation&nbsp;S-K.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>The Company notes your comments and confirms that, in future filings, it will
provide a substantive analysis and insight into why the Company&#146;s compensation
committee determined that the levels of equity compensation were appropriate in light of
the factors considered in deriving those payouts.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>2008 Director Compensation, page 16</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">15.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><I>Please confirm that there is no written agreement with Mr.&nbsp;Rego with respect to his
consultancy services to the company. Otherwise please ensure that you file such agreement
as an exhibit with your next report.</I></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Response: </B>Mr.&nbsp;Rego died on October&nbsp;7, 2009. The Company confirms that there was no
written agreement with Mr.&nbsp;Rego with respect to his consultancy services to the Company
prior to his death.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company acknowledges that:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is responsible for the adequacy and accuracy of the disclosure in their
filings;</TD>
</TR>


</TABLE>
</DIV>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">December&nbsp;16, 2009<BR>
Page 7
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company may not assert Staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any further questions or comments please contact the Company&#146;s counsel, Thompson &#038;
Knight LLP, by contacting Ann Marie Cowdrey at (214)&nbsp;969-1221.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Respectfully,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Frank J. Bilban
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Frank J. Bilban&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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