prepared by Mr. Steven Grimes

July 24, 2002

Mr. Vergasov

300 Sequoia A ve

Palo Alto, CA 94306

Dear Mr. Vergasov:

This is to confirm our verbal conversation July 18th that we have come to an agreement regarding the Redwood tree and also the fence between our homes.

We have agreed to remove the Redwood tree and to split the cost. I have a permit, issued in my name, to remove the tree. Currently, I have a quotation to cut down and remove the tree. I will arrange for McClanahan Tree Service to cut the tree to as close to grade as possible. The quote is $2,200. I propose that we each write a check for half the amount for the deposit (if required) and balance due upon completion. If, in the future, we both agree to remove the stump and roots I would propose that we split the cost for this phase of work as well.

I have arranged for them to begin work July 29th. They expect the job to take approximately two days.

Regarding the fence; we have agreed to leave the fence as is and that it will not be moved. I would appreciate it if you would acknowledge and sign this letter to confirm our agreement.

Separately, I am arranging for a letter, representing our agreement on the fence, that will be signed by you and myself and would be recorded with the county of Santa Clara.

Thank you. Regards,

Steve Grimes                                                                                                                  Fatekh Vergasov

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