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KLEINFELDER File No. 20-3978-01.W22 February 6, 1997 The client should be aware that penetrating the site's surface is inherently risky. It is impossible to determine with certainty the precise location of all structures (such as septic system tanks or leach fields) which may be buried in the ground. Kleinfelder's fee is not adequate to compensate for both the performance of the services and the assumption of risk of damage to such structures. If the active septic system on site is damaged by our field activities, repairs will be necessary in order to provide continued service to the administration building on site. Disruption of utilities or damage to underground structures and repair will be the responsibility of the client. Services rendered by Kleinfelder to repair them will be billed at cost. Underground Services Alert (USA) at 1-800-642-2444 provides a partial location service free of charge for major utility lines. It is important that Atherton Kirk Development understand that subsurface structures (such as the septic systems and leach fields) buried under private property will not be marked by the public utility companies contacted by USA. Kleinfelder can make contact with USA for a site visit, if requested. SCHEDULE Kleinfelder could initiate field activities within 3 to 5 working days of receiving written authorization to proceed from PHS/EHD. Our report will be submitted for client review within 10 working days of receiving analytical results. Verbal results will be provided upon our receipt of the analytical data. The estimated completion time for this scope of work is approximately 5 weeks from approval by PHS/EHD. LIMITATIONS Kleinfelder prepared this proposal in accordance with generally accepted standards of care which exist in Northern California at this time. It should be recognized that definition and evaluation of geologic and environmental conditions are a difficult and inexact science. Judgments leading to conclusions and recommendations are generally made with incomplete knowledge of the subsurface conditions present. More extensive studies, including subsurface investigations, may be performed to reduce uncertainties. If the client wishes to reduce the uncertainties beyond the level associated with this proposal Kleinfelder can be notified for additional consultation. No warranty, expressed or implied, is made. Regulations and professional standards applicable to Kleinfelder's services are continually evolving. Techniques are, by necessity, often new and relatively untried. Different professionals may reasonably adopt different approaches to similar problems. Therefore, no warranty or guarantee, expressed or implied, will be included in Kleinfelder's scope of service. 20-3978-01.W221207PE048 Page 5 of 01997, Kleinfelder, Inc.