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KLEINFELDER Kleinfelder prepared this proposal in accordance with generally accepted standards of care, which exist in San Joaquin County at this time. It should be recognized that definition and evaluation of geologic and environmental conditions are a difficult and inexact science. Judgments leading to conclusions and recommendations are generally made with incomplete knowledge of the surface and subsurface conditions present. More extensive studies, including subsurface investigations, may be performed to reduce uncertainties. If the client wishes to reduce the uncertainties beyond the level associated with this scope of work Kleinfelder can be notified for additional consultation. No warranty, expressed or implied, is made. Regulations and professional standards applicable to Kleinfelder's services are continually evolving. Techniques are, by necessity, often new and relatively untried. Different professionals may reasonably adopt different approaches to similar problems. Therefore, no warranty or guarantee expressed or implied,will be included in Kleinfelder's scope of service. During the course of the performance of Kleinfelder's services, hazardous materials may be discovered. Kleinfelder will assume no responsibility or liability whatsoever for any claim, loss of property value, damage, or injury that results from pre-existing hazardous materials being encountered or present on the project site, or from the discovery of such hazardous materials. Nothing contained in this proposal should be construed or interpreted as requiring Kleinfelder to assume the status of an owner, operator, generator, or person who arranges for disposal, transport, storage or treatment of hazardous materials within the meaning of any governmental statute, regulation or order. The DeSilva Group will be solely responsible for notifying all governmental agencies, and the public at large, of the existence, release, treatment or disposal of any hazardous materials observed at the project site, either before or during performance of Kleinfelder's services. The DeSilva Group will be responsible for all arrangements to lawfully store, treat, recycle, dispose, or otherwise handle hazardous materials, including cuttings and samples resulting from Kleinfelder's services. Kleinfelder will perform its services in a manner consistent with the standards of care and skill ordinarily exercised by members of the profession practicing under similar conditions in the geographic vicinity and at the time the services will be performed. No warranty or guarantee expressed or implied is part of the services offered by this cost estimate. All information gathered during the study by Kleinfelder is considered confidential and will be released only upon written authorization from the client or as required by law. California law requires a person to inform the state if a situation is encountered that can be considered an immediate endangerment to the public's health or welfare and/or to the environment. Therefore, the client shall be contractually bound to make said disclosures in lieu of Kleinfelder, its owners, principals, employees or subcontractors. This document may be used only by the client and only for the purposes stated, and within a reasonable time from its issuance. Land use, site conditions (both on site and off site) or other factors may change over time, and additional work may be required with the passage of time. Any party other than the client who wishes to use this document is requested to notify 02001 PROP.ENV/STO4P222/DGD:ss Page 9 of 10 Copyright 2004,Kleinfelder,Inc. May 26,2004