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Duke Lesley-CS100521www.archinsurance.com ��'Arch ornan �� Company y a nnernber of Arch Insurance Group May 21, 2010 Larry Davis The City of Coppell 255 Parkway P.O. Box 9478 Coppell, TX 75019 RE: Our File No.: SU 1030611 -01 Bond #: SU 1030611 3 Parkway 215- 606 -1600 main Suite 1500 866 472 8845 Ton Free Philadelphia, PA 19102 866 637 5861 Fax Principal: L H Lacy Company, Ltd. Obligee: City of Coppell Project: Lesley Infrastructure; City of Coppell; 2 -yr. Maintenance Only Claimant: City of Coppell Dear Mr. Davis: Please accept this letter in response to yours dated April 29, 2010. Please be advised that we are contacting our principal in response to your letter to ascertain their position with respect to the claim. In the interim, should you have any immediate questions or concerns, please do not hesitate to contact me. This correspondence and all prior or subsequent communications and /or investigative efforts are made with the express reservation of all rights and defenses which Arch Insurance Company or our principal has or may have at law, equity or under the terms and provisions of the bond and contract documents. This reservation includes, without limitation, defenses which may be available under any applicable notice and suit limitation provisions Sincerely, Arch Insurance Company Brian C. Kuhn cc: L H Lacy Company, Ltd. Mike Davis, Arch Insurance Co. (via email) Alex Martinez, Arch Insurance Co. (via email)