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U9 KLEINFELDER proposal and therefore shall be null and void unless our contract has been signed for the work performed. All information gathered during the study by Kleinfelder is considered confidential and will be released only upon written authorization of 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 will be contractually bound to make any said disclosures in lieu of Kleinfelder, its owners, principals, employees or subcontractors. LIMITATIONS 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 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 proposal Kleinfelder can be notified for additional consultation. No warranty, expressed or implied, is made. Kleinfelder offers various levels of investigative and engineering services to suit the varying needs of different clients. Although risk can never be eliminated, more-detailed and extensive investigations yield more information, which may help understand and manage the level of risk. Since detailed investigation and analysis involves greater expense, our clients participate in determining levels of service which provide adequate information for their purposes at acceptable levels of risk. Acceptance of this proposal will indicate that KB Homes has reviewed the scope of work and determined that it does not need or want a greater level of service than will be provided. Any exceptions should be noted and may result in higher fees. 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 perforrnance 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. KB Homes will be solely responsible for notifying all governmental agencies, and the public at large, of the existence, release, treatment or disposal of any hazardous 02001PROP.ENV/ST03PO65 Page 8 of 10 Copyright 2003,Kleinfelder,Inc. February 20,2003