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ST0301A-CS110124 ST (3-(9/ A The Reserve A Residential Community of Coppell January 24, 2011 Att: Dean Dumke JR1 Paving Co Re: The Reserve Approval of JRJ Paving - Latent defects detected Mr. Dumke, I wanted to create a quick chronology of events and discussions regarding the work completed and yet to be completed at The Reserve. i As you may recall on November 8, 2010 I had expressed concern with the constant movement and vibration of your equipment as it relates to our common wall that lines the south side of Bethel. I asked if your company would be willing to off-set our cost with a modest amount of $500. You said would address with Marty and felt it a relatively small matter given the nature of your liquidated damage clause and contract issues with the city. In this same window of time the landscaping matter arose along the same south side wall on Bethel (reconciling what died and needed replacement). I engaged David our landscaper to assess damages. We met with your TEM subcontractor to ensure the functioning of sprinklers, placement of beds and bushes, etc. This exercise went very well and the letter I provided dated January 4 does in fact approve this restorative work in its entirety. You approached me with a check and draft dated January 11 - handed off to me on the 14 The money coincidentally was in the sum of $500 which I believed was the money earmarked for any wall repairs (and would absolve you of any further issues with the wall as you had asked). But the letter itself has also added language absolving JRJ Paving of any and all damage related to electrical. Our entrance project requires electrical which was functional and present prior to JRJ Paving construction work. I had no reason to suspect the power would not be working when I signed this letter on the 14 Only when our contractor commenced work on our entrance project did that fact become clear (we have used homes in the immediate area to move the project forward). I had no knowledge if the lack of power was temporary and assumed if JRJ was in anyway responsible they would do the right thing. As such we can no longer consider the project closed or approved at this point. I am submitting back your check along with this letter and the good faith and expectation that we can find a quick and agreeable solution that does not require attorneys or acrimonious finger - pointing. We eagerly await your resolution at which time I will gladly draft a letter that will provide final and clear approvals. Best regards, Joe Altadonna President The Reserve Home Owners Association