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<br /> Mr. John Hendrick
<br /> December 4,2007
<br /> Page 4
<br /> IV. LIMITATION OF LIABILITY AND LIABILITY INSURANCE FEE
<br /> In recognition of the relative risks and benefits of the Project to both the District and LRE,
<br /> the risks have been allocated such that the District agrees to limit the liability of LRE to
<br /> either$100,000 or$1,000,000 by choosing(at the signature blocks)whether to accept the
<br /> limits in paragraph 1 or paragraph 2, below. If the District chooses the higher limit in
<br /> paragraph 2,the District agrees to pay to LRE a liability insurance fee in the amount of$250
<br /> which will be billed on the first invoice.
<br /> 1. In recognition of the relative risks and benefits of the Project to both the District and
<br /> LRE,the risks have been allocated such that the District agrees,to the fullest extent
<br /> permitted by law,to limit the liability of LRE and its officers, employees and sub-
<br /> consultants, to the District and all of the District's contractors and consultants, for
<br /> any and all claims, losses, costs, damages of any nature whatsoever or claims
<br /> expenses from any cause or causes, including attorneys' fees and costs and expert
<br /> witness fees and costs,so that the total aggregate liability of LRE to the District shall
<br /> not exceed the total amount of$100,000 or the amount of LRE's total fee for the
<br /> services rendered on this project, whichever is greater. It is intended that this
<br /> limitation apply to any and all liability or cause of action however alleged or arising,
<br /> unless otherwise prohibited by law.
<br /> 2. In recognition of the relative risks and benefits of the Project to both the District and
<br /> LRE,the risks have been allocated such that the District agrees,to the fullest extent
<br /> permitted by law,to limit the liability of LRE and its officers, employees and sub-
<br /> consultants, to the District and all of the District's contractors and consultants, for
<br /> any and all claims, losses, costs, damages of any nature whatsoever or claims
<br /> expenses from any cause or causes, including attorneys' fees and costs and expert
<br /> witness fees and costs,so that the total aggregate liability of LRE to the District shall
<br /> not exceed the total amount of$1,000,000 or the amount of LRE's total fee for the
<br /> services rendered on this project, whichever is greater. It is intended that this
<br /> limitation apply to any and all liability or cause of action however alleged or arising,
<br /> unless otherwise prohibited by law.
<br /> V. SPECIAL SERVICES
<br /> Services in addition to those described under Part I will be performed or obtained for the
<br /> client's account upon request and approval at rates currently in effect. Special services may
<br /> include, but are not limited to, expert testimony, appearances at public meetings, soil
<br /> investigations, topographic and land surveys, including establishment of boundaries,well
<br /> drilling, well and aquifer testing, electric logging, water quality sampling and analysis,
<br /> preparation of construction drawings and specifications, and material testing.
<br /> Acceptance of this proposal and authorization to proceed with the services can be indicated by
<br /> signing one copy and returning it to us for our files. The terms of this proposal will be honored for a
<br /> period of 30 days.
<br /> LEONARD RICE ENGINEERS.INC.
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