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June 2, 2010 <br />Ben Frei <br />Albert Frei & Sons, Inc. <br />P.O. Box 700 <br />Henderson, CO 80640 <br />Re: Frei's Stagecoach PitBrannan's Pit 29 <br />Dear Ben: <br />I am writing to confirm the understanding we reached about the Stagecoach Drainage Project <br />which was designed to address the alleged ground water mounding in the vicinity of the above <br />referenced lined gravel pits that appear to be adversely affecting Zigan Lake. Without admitting <br />any liability or responsibility for the alleged ground water mounding, Brannan has agreed to <br />contribute $98,000 to the Project on the following conditions: <br />a. Frei will award construction of the Project to Brannan based on Brannan's bid <br />with a "bid date" of April 13, 2010 in the amount of $243,895.36; <br />b. Brannan will receive from Frei, the Zigan Homeowners' Association, and any <br />individual homeowner in the vicinity of Zigan Lake that may be affected by the alleged ground <br />water mounding a release and indemnity from any liability or responsibility for the alleged <br />ground water mounding (but not for any defects in Brannan's construction of the Project) in form <br />and substance acceptable to our attorney; and <br />c. Frei has and will continue to address, at its sole cost, any ground water mounding <br />impacts until construction of the Project is complete using the pumps and pipes currently in <br />place. <br />It is our understanding that the work will be done in the October-November timeframe when the <br />natural. ground water levels are low and that the Zigan homemmiers have agreed to this <br />construction schedule. <br />If I have accurately captured the essence of our agreement, please so signify in the space <br />provided below. <br />Thanks and please <br />Si <br />'t hesitate to call if you have any questions. <br />J.C. Marvel, Jr. V ' ! <br />Brannan Sand and Gravel Company <br />,?ooooo?h <br />YOU BET <br />BRA'?vNAfV <br />DID IT <br />2500 East Brannan Way I Denver I CO 80229 1 303.534.1231 Tel 1 303.534.1236 Fax <br />www.brannani.com