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k'q KLEINFELDER <br /> AUTHORIZATION <br /> A signed original proposal, returned to us, will serve as our formal authorization to proceed. If <br /> there is a need for any change in the proposal, please call us immediately. Changes may require <br /> revision of the proposed fee, which will be communicated to you upon assessment of the <br /> I!I requested changes' effect on the fee. <br /> The proposal will remain in effect for 90 days from the date shown on the proposal and therefore <br /> shall be null and void unless our original proposal for the work performed has been accepted <br /> using the acceptance signature block by an authorized client representative and one of the entire <br /> proposal returned to Kleinfelder. <br /> 4 I <br /> k <br /> All information gathered during the study by Kleinfelder is considered confidential and will be <br /> released only upon written authorization of the client or as required by law. California law <br /> 1 <br /> a <br /> requires person to inform the State if a situation is encountered that can be considered an <br /> q <br /> immediate endangerment to the public's health or welfare and/or to the environment. Therefore, <br /> the client will be contractually bound to make any said disclosures in lieu of Kleinfelder, its <br /> owners, principals, employees or subcontractors. <br /> LIMITATIONS <br /> `^ The proposed scope of work requested by Pegasus Development is limited to evaluating <br /> environmental concerns associated with the potential presence of hazardous substances in <br /> conjunction with the transfer or financing of the referenced property. This limited environmental <br /> evaluation does not include sampling and analysis or other services not described. Other <br /> environmental or geotechnical investigative services can be provided for additional fees. The <br /> scope of services described here is not intended to be inclusive, to identify all potential concerns, <br /> or to eliminate the possibility of environmental problems. Within current technology, no level of <br /> assessment can show conclusively that a property or its structures are completely free of <br /> hazardous substances. Therefore, Kleinfelder cannot offer a certification that the property is <br /> F! clear of environmental liability. <br /> r- Kleinfelder will assume no responsibility or liability whatsoever for any claim, loss of property <br /> value, damage, or injury which results from pre-existing hazardous substances being encountered <br /> or present on the project site, or from the discovery of such hazardous substances. Kleinfelder <br /> offers a range of investigative and engineering services to suit the varying needs of our clients. <br /> Although risk can never be eliminated, more detailed and extensive investigations yield more <br /> information, which may help understand and manage the degree of risk. Since such detailed <br /> services involve greater expense, our clients participate in determining the level of service, which <br /> t + provide adequate information for their purposes at an acceptable level of risk. Acceptance of this <br /> proposal will indicate that Pegasus Development has reviewed the scope of service and <br />' determined that it does not need or want more services than are being proposed at this time. Any <br /> i exceptions should be noted and may result in a change in fees. <br /> E <br /> i <br /> 02001 PROP.ENV/ST05 P I09/DGD:Vv Page 5 of G <br /> ©2005, Kleinfelder,Inc. March 14,2005 <br />