_GENERAL DOCUMENTS - C1981017 (234)

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08. "? 1 . 07 01 : 42 PM *MID- CONTINENT CBDL P02 I hA rl' MID-CONTINENT RE$OURCESs INC. PRODUCERS OF THE FAMOUS COAL BASIN COKING COAL IOU COUNTY ROAD 100• BOX 500 CARBONDALE,COLORADO 81523 T`x aS0f MAIN OFFICE 0031"a-ml FAX DISTRICT OFFICE 0031 f63 (303)M-21118 wI1REH000E law)00=3 August 13, 1997 Mr. Michael Ebert Machinery & Equipment CO. P. O. Box 7632 San Francisco, CA 94120 Mr. Albert M. King A.M. King Industries, Inc. 2875 Feather kiver Blvd. Oroville, CA 95965 Dear Mike and Bert: On June 7, 1996 a Settlement Agreement was entered in which it was agreed that: "4. Contractor agrees to accelerate completion of the work to be performed under the Contract from a date that expires five years from the date of the contract, September 1, 1992, to December 31, 1996, except that the unit Train Loadout bin at the Loadout shall not be salvaged/scrapped." Under Paragraph 8 it was further agreed that "To facilitate the accelerated salvaging, scrapping and clean up of the Mine Site, M&E/King and MCR shall share equally this accelerated salvaging, scrapping and clean up to the sum of $125, 000 each, part of which may include the $30, 000 described in Paragraph 6 above" . It was also provided that "Contractor shall defer any commissions otherwise owing until such time as the accelerated clean up funds are recaptured." It was further agreed in Paragraph 9 that "To further facilitate the accelerated clean up of the mine site, M&E/King may further withhold the sum of $10, 000 as it` s pro rata contribution to the scrapping and clean up of work remaining in the Coal Basin Mine site to conclude this activity by the end of the 1996 work season" . In about two months from now, snow will begin to fall in Coal Basin and clean up/salvage will become ineffective, and the working season will, terminate shortly thereafter. Your failure to perform has resulted in a breach of the