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                                                                 Exhibit 10.3
                              Extension Agreement

Diamond Home Services, Inc.
222 Church Street
Woodstock, Illinois  60098

Re:        Defaults by Diamond Home Services, Inc. (the "Borrower")
          and request for extension of forbearance under that certain
       Credit Agreement dated as of April 20, 1998 as previously amended
                           (the "Credit Agreement")
       _________________________________________________________________

Gentlemen:

     As you know, there are currently Existing Defaults by the Borrower under
the Credit Agreement.  In addition, the Borrower has informed the Banks that the
Borrower will be unable to make the principal payment on the Term Loans
scheduled as due today.  We are currently party to a September 1, 1999
Forbearance Agreement with the Borrower and the Material Subsidiaries (the
"Forbearance Agreement") which sets out the terms and conditions upon which the
Banks were willing to provide the Borrower with limited financial support and
forbear from accelerating the Obligations and enforcing the liens granted by the
Collateral Documents during the Standstill Period.  Terms defined in the
Forbearance Agreement are used herein with the same meanings.

     The Borrower has requested that the Banks extend to October 18, 1999 the
Scheduled Standstill Expiration Date and refrain from acting on the Borrower's
failure to make the principal payment on the Term Loans required today.  This
letter will confirm the terms, conditions and provisions upon which the Banks
are willing to so extend the forbearance arrangements. Accordingly, effective
upon the Borrower's and the Material Subsidiaries' acceptance of this letter by
the Borrower's and the Material Subsidiaries' execution in the space provided
for that purpose below (which acceptance must occur without any modification of
the terms of this letter and no later than 5:00 p.m., Chicago time, on Monday,
October 4, 1999), the Banks agree to extend the forbearance arrangements with
the Borrower under the following terms and conditions:

            1. Extension.  The Scheduled Standstill Expiration Date shall be and
     hereby is extended from September 29, 1999 to October 18, 1999.  All
     references in the Forbearance Agreement to September 29, 1999 shall be
     deemed references to October 18, 1999.

            2. Acknowledgment of Amounts Owing.  The Borrower acknowledges and
     agrees that the principal amount of Loans and L/C Obligations as of
     September 29, 1999,

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     is $40,416,710 ($16,875,000 in Term Loans, $0 in Swing Loans, $22,841,710
     in Revolving Loans and $700,000 in L/C Obligations) and such amount
     (together with interest thereon) is justly and truly owing by the Borrower
     to the Banks without defense, offset or counterclaim.

            3. No Additional Credit.  The Borrower acknowledges that the Banks
     continue to exercise their right to cease extending any additional credit
     under the Credit Agreement; provided, however, that unless and until a
     Standstill Termination occurs, the Banks will continue, pursuant to Section
     1.6(c) of the Credit Agreement, to make Base Rate Loans to repay
     Reimbursement Obligations arising from drawings paid on Letters of Credit.

            4. Net Cash Position.  The Projections set forth in Schedule One to
     the Forbearance Agreement are being replaced by the projections attached
     hereto as Schedule One (the "New Projections").  All references in the
     Forbearance Agreement to the Projections shall be deemed references to the
     New Projections.

            5.  September 30, 1999 Principal Payment.  The Borrower has
     indicated its inability to make the principal payment on the Term Loans
     scheduled as due today.  The Banks agree that this failure to make such
     payment shall constitute an "Existing Default" to the same extent as if it
     were originally included in the Forbearance Agreement as an Existing
     Default.  As more fully set forth in the Forbearance Agreement, the Banks
     are not waiving this or any other Existing Default.

            6. KanTel.  No later than October 8, 1999, the Borrower shall, and
     shall cause its Subsidiaries to, execute and deliver such instruments and
     documents (including without limitation UCC financing statements, stock
     certificates and stock powers), and do such further acts and things, as the
     Agent shall reasonably deem necessary to confirm and assure that the
     Property acquired by the Borrower and its Subsidiaries as a result of their
     acquisition of KanTel constitutes Collateral in the manner contemplated by
     the Loan Documents.

            7. Lien on Reeves Real Estate. Notwithstanding anything contained in
     the Credit Agreement to the contrary, no later than the Scheduled
     Standstill Expiration Date (as extended hereby), the Borrower (i) shall
     have reached agreement with the Agent on the form of mortgage necessary to
     grant to the Agent for the benefit of itself and the Banks a Lien on each
     parcel of real property owned by Reeves and designated by the Agent to
     secure the Obligations and Hedging Liability and (ii) shall at its expense
     order for each such parcel designated by the Agent (no parcel with a fair
     market value of less than $100,000 to be so designated), the following
     items: a survey, environmental report and commitment for a mortgagee's
     policy of title insurance from a title insurer reasonably acceptable to the
     Agent insuring the validity of the relevant mortgage and its status as a
     first Lien (subject to Liens permitted by the Credit Agreement) on the real
     property encumbered thereby (it being understood that (i) the Agent may not
     at its discretion require each of such items for each such parcel and (ii)
     the placement of an

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     order for any item prior to the Scheduled Standstill Expiration Date does
     not necessarily mean that the item so ordered will be provided prior to
     such date).

            8. Green Tree Purchase.  The Banks will consent to the Disposition
     made by Marquise to Green Tree Financial Servicing Corporation ("Green
     Tree") of Property owned by Marquise pursuant to the same or substantially
     the same terms and conditions as are set forth in the draft of the Green
     Tree Contract Purchase Agreement ("Draft Purchase Agreement") faxed from
     Green Tree to Marquis on August 18, 1999; provided, however, that (i) such
     disposition is made prior to any Standstill Termination, (ii) such
     Disposition is for a gross cash consideration payable entirely at closing
     to Marquis of not less than 103% of face principal amount of the Contracts
     (as defined in the Draft Purchase Agreement) and (iii) any guaranty or
     other support by the Borrower or any Subsidiary for Marquise's obligations
     with respect to such Disposition shall be on terms and conditions
     satisfactory to the Banks.

            9. Intercompany Payables between Reeves and Diamond Exteriors, Inc.
     Diamond Exteriors, Inc. ("Exteriors") purchases goods from Reeves in the
     ordinary course of its business and such purchases give rise to
     intercompany payables.  A Standstill Termination shall be deemed to occur
     if Exteriors' intercompany payables to Reeves remain unpaid for a period
     longer than what is generally now the case for Exteriors' other accounts
     payable, and in no event shall such intercompany payables remain unpaid
     longer than what generally is now the case for Exteriors' accounts payable
     to its other third party material vendors.

            10.  Legal Expense.  No later than the Scheduled Standstill
     Termination Date, the Borrower must pay in full all of the Agent's invoices
     and legal expenses for work done in connection with the credit arrangements
     contemplated by the Credit Agreement.

            11.  New Borrowing Base Reporting.  The Agent conducted a field
     audit on the Collateral in September of this year (the "Field Audit").
     Based on the information gained from the Field Audit, the Agent has
     determined that the Borrower has been inaccurately computing and reporting
     the Borrowing Base.  No later than October 12, 1999, the Borrower must
     accurately compute and report its Borrowing Base so as to eliminate the
     inaccuracies revealed by the Field Audit.

            12.  Compliance With Forbearance Agreement.  The Borrower must
     continue to comply with all the terms, conditions and provisions of the
     Forbearance Agreement as modified by this letter.  Without limiting the
     generality of the foregoing, the Borrower must continue to comply with the
     Borrowing Base requirements as modified by the Forbearance Agreement and
     this letter (it being understood and agreed that modifications of such
     Borrowing Base requirements may be made as a result of the information
     gained from the Field Audit).

            13.  Miscellaneous.  Except as specifically modified by this letter,
     the terms, conditions and provisions of the Forbearance Agreement remain in
     full force and effect.

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     Dated as of October 1, 1999.

                                 Very truly yours,

                                 Harris Trust and Savings Bank, individually
                                   and as Agent

                                 By
                                   Its Vice President


                                 LaSalle Bank, National Association

                                 By
                                   Its________________________________________


                                 Bank of America, N.A.

                                 By
                                   Its_______________________________________


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     The undersigned accept and agree to the above letter.

                                 Diamond Home Services, Inc.

                                 By
                                   Its______________________

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                         Material Subsidiaries' Consent

     The undersigned, being all the Material Subsidiaries of the Borrower, have
heretofore executed and delivered to the Banks a Guaranty and certain other
Collateral Documents and hereby consent to the above Agreement and confirm that
their Guaranty and such Collateral Documents and all of the undersigneds'
obligations thereunder remain in full force and effect.  The undersigned further
agree that the consent of the undersigned to any further modifications in the
credit arrangements contemplated by the Credit Agreement shall not be required
as a result of this consent having been obtained.  Each Material Subsidiary
shall take such action as the Borrower is required by this letter to cause such
Material Subsidiary to take, and shall refrain from taking such action as the
Borrower is required by the above Agreement to prohibit such Material Subsidiary
from taking.

                                 Reeves Southeastern Corporation

                                 By
                                   Its___________________________


                                 Foreline Security Corporation

                                 By
                                   Its___________________________


                                 Diamond Exteriors, Inc.

                                 By
                                   Its___________________________


                                 Marquise Financial Services, Inc.

                                 By
                                   Its___________________________


                                 Reeves Southeastern Realty, Inc.

                                 By
                                   Its___________________________


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                                  Schedule One







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