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PN: 11076P <br />June 2, 2011 <br />Consultant is legally liable. <br />Page 4 <br />Neither the Client nor the Consultant shall be obligated to indemnify the other party in any <br />manner whatsoever for the other party's own negligence or for the negligence of others. <br />Dispute Resolution <br />In the event of a dispute arising out of or relating to this agreement or other services to be <br />rendered as discussed in this document, the Client and the Consultant agree to attempt to resolve <br />such disputed in the following manner: <br />1.) The parties agree to attempt to resolve such disputed through direct negotiations <br />between appropriate representatives of each party. <br />2.) If such negotiations are not fully successful, the parties agree to attempt to resolve any <br />remaining disputes by formal non binding mediation conducted in accordance with <br />rules and procedures to be agreed upon by the parties. <br />3.) If the disputed or any issues remain unresolved after the above actions the parties are <br />released to settle such disputes in the state of Colorado court system with the venue <br />being in La Plata County, Colorado. <br />FEES <br />The fees for the services outlined above are; <br />Drill Rig, Mud Pump, Materials and Crew Mobilization/Demobilization ...............$1,510.00 <br />Drilling/Sampling/Closure fee for advancement of 1 boring to 60 feet, SPT each 5 feet ............ $1,820.00 <br />Laboratory Testing ............... $600.00 <br />Report of Log and Test Results ................$200.00 <br />TOTAL Estimate-Singular Boring .............$4,120.00 <br />Our fees for additional consultation, if needed, will be invoiced based on the attached fee <br />schedule. <br />Payment for our work is due upon presentation of our invoice. Accounts not paid within thirty <br />(30) days will be charged an additional 2.0 percent per month. The client agrees to pay collection <br />service costs and attorney fees incurred by us in collections of amounts due us. <br />Cancellation of this agreement by the client or by us must be in writing. Fees incurred to the <br />time of cancellation will be invoiced on a time and materials basis. <br />This offer will remain valid until August 2, 2011. After this date, we reserve the right to modify <br />our scope of service and associated fees, if necessary. <br />TRAUTNER 4- 01IT-*W:M