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h KKLEINFELDER 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. SJRTD 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. SJRTD 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 proposal. 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 will be contractually bound to make any 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 Kleinfelder of such intended use in writing. Based on the intended use of the document, Kleinfelder may require that additional work be performed and that an updated document be issued. Non-compliance with any of these requirements by the client or anyone else will release Kleinfelder from any liability resulting from the use of this document by any unauthorized party. The fees presented in this proposal are based on prompt payment for services presented in Kleinfelder's standard invoicing format. Additional charges will be applied for specialized invoicing and/or if backup documentation is needed. These special services will be charged on a time and expense basis. Late fees will be charged if payment is not received in accordance with terms contained in our contract. This proposal is based on an Addendum to Professional Services Agreement (contract) which is attached. If changes are made to the terms and conditions, or if an additional insurance or liability coverage is desired, Kleinfelder reserves the right to modify its proposal/fee. Additionally, if an alternative contract is desired, some delays may be incurred as a consequence of our review. 02002PROP.ENV/STO5P174/DH:Iv Page A-6 0 2005 Kleinfelder,Inc. May 16,2005