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... ... Patterson Pass Business Center, Building#6 Page 8 Tracy, California ESTIMATION OF SEISMIC RISK The seismic hazard evaluation and structural appraisal are combined to estimate the risk of earthquake damage at the project. Seismic risk is characterized in terms of Probable Maximum Loss (PML). The PML is our best estimate of the damage due to ground motion with a 10 percent probability of exceedance in a 50-year period and is expressed as a percentage of building replacement cost. The following table is provided as an aid to interpreting the level of building damage represented by the PML: PML DAMAGE DESCRIPTION OF EXPECTED DAMAGE VALUE STATE 0 to 1% Slight Limited localized minor damage not requiring repair. 1 to 10% Light Significant localized damage of some components generally not requiring repair. 10 to 30% Moderate Significant localized damage of many components warranting repair. 30 to 60% Heavy Extensive damage requiring major repairs. 60 to 100% Major Major widespread damage that may result in the facility being condemned demolished or repaired. PROBABLE MAXIMUM LOSS (PML) The Probable Maximum Loss (PML) at the project has been estimated as: PROJECT PML=13% Our assessment of the potential seismic damage is for the as-built building. The PML includes consideration of the local conditions and seismicity (EPA and duration of strong shaking), damage expected in typical code-conforming buildings of this type, and specific identified areas of damage as outlined in our structural appraisal. The above damage estimate does not include possible secondary damage resulting from pipe failures, fire, or rescue and clean-up operations following an earthquake. The PML does not include losses associated with loss of income or relocation of occupants. 05005.01 R. D. Boyens Engineering