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FEB-03-2004 12 :43 PM WDO, INC. 209 835 9022 P. 02 <br /> Tom Gau, Deputy Director <br /> San Joaquin County Department of Public Works <br /> February 3, 2003 <br /> Page'Two <br /> Ryland Homes (Chad Kiltz, Manager) has purchased the Linne project subject to a portion of the <br /> purchase price paid at recorded map. Ryland is a production builder and anticipates sufficient <br /> influent to cause the plant to be operational from the outset. In any event you can depend that I <br /> will stay with the project until the W.W.T.P. is operating to State standards. <br /> Roger and I executed a contract with 7H that,among other conditions,calls for additional <br /> emergency storage capacity and Eco:Logie upgrades,increasing the standard specifications by <br /> $225,000. In addition, 7H is not to be paid the retention until the W.W.T.P. meets State <br /> requirements and there is a$1,000 per day penalty for construction delay. Redundant replacement <br /> parts will be stored on-site. Note,this plant will have additional capacity which Roger and I expect <br /> to retain for our future use.. <br /> Certain parts of this W.W.T.P. require substantial lead time and it is critical they be ordered now. <br /> Ryland is prepared to put up the required equipment deposits. Hopefully an early meeting will <br /> resolve the above stated issues. <br /> cerely, <br /> W. Dave Olmstead <br /> Copy to: Mike Ehret 209.468.3163 <br /> Copy to: Mike Huggins 209.464.0138 <br /> Copy to: Chad Kiltz 925.866.9233 <br /> Copy to: Roger Elissagaray 209.830.6844 <br />