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DRAFT <br /> uncertainties. If the client wishes to reduce the uncertainties beyond the level <br /> associated with this workplan Kleinfelder can be notified for additional consultation. No <br /> warranty, expressed or implied, is made. <br /> Kleinfelder offers various levels of investigative and engineering services to suit the <br /> varying needs of different clients. Although risk can never be eliminated, more-detailed <br /> and extensive investigations yield more information, which may help understand and <br /> manage the level of risk. Since detailed investigation and analysis involves greater <br /> expense, our clients participate in determining levels of service which provide adequate <br /> information for their purposes at acceptable levels of risk. Acceptance of this workplan <br /> will indicate that Pegasus MH Ventures I has reviewed the scope of work and <br /> determined that it does not need or want a greater level of service than will be provided. <br /> Any exceptions should be noted and may result in higher fees. <br /> Regulations and professional standards applicable to Kleinfelder's services are <br /> continually evolving. Techniques are, by necessity, often new and relatively untried. <br /> Different professionals may reasonably adopt different approaches to similar problems. <br /> Therefore, no warranty or guarantee, expressed or implied, will be included in <br /> Kleinfelder's scope of service. <br /> During the course of the performance of Kleinfelder's services, hazardous materials <br /> may be discovered. Kleinfelder will assume no responsibility or liability whatsoever for <br /> any claim, loss of property value, damage, or injury that results from pre-existing <br /> hazardous materials being encountered or present on the project site, or from the <br /> discovery of such hazardous materials. <br /> Nothing contained in this workplan should be construed or interpreted as requiring <br /> Kleinfelder to assume the status of an owner, operator, generator, or person who <br /> arranges for disposal, transport, storage or treatment of hazardous materials within the <br /> meaning of any governmental statute, regulation or order. Pegasus MH Ventures I will <br /> be solely responsible for notifying all governmental agencies, and the public at large, of <br /> the existence, release, treatment or disposal of any hazardous materials observed at <br /> the project site, either before or during performance of Kleinfelder's services. Pegasus <br /> MH Ventures I will be responsible for all arrangements to lawfully store, treat, recycle, <br /> dispose, or otherwise handle hazardous materials, including cuttings and samples <br /> resulting from Kleinfelder's services. <br /> Kleinfelder will perform its services in a manner consistent with the standards of care <br /> and skill ordinarily exercised by members of the profession practicing under similar <br /> conditions in the geographic vicinity and at the time the services will be performed. No <br /> warranty or guarantee, expressed or implied, is part of the services offered by this <br /> workplan. <br /> All information gathered during the study by Kleinfelder is considered confidential and <br /> will be released only upon written authorization from the client or as required by law. <br /> California law requires a person to inform the state if a situation is encountered that can <br /> 44843.T04/STO5R997/DH:ly Page 13 of 14 <br /> ©2005 Kleinfelder, Inc. August 16, 2005 <br />