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CORNERSTONE EARTH GROUP SECTION 12: LIMITATIONS This report, an instrument of professional service, has been prepared for the sole use of Ponderosa Homes specifically to support the design of the Ponderosa Active Adult Community project in Pleasanton, California. The opinions, conclusions, and recommendations presented in this report have been formulated in accordance with accepted geotechnical engineering practices that exist in Northern California at the time this report was prepared. No warranty, expressed or implied, is made or should be inferred. Recommendations in this report are based upon the soil and ground water conditions encountered during our subsurface exploration. If variations or unsuitable conditions are encountered during construction, Cornerstone must be contacted to provide supplemental recommendations, as needed. Ponderosa Homes may have provided Cornerstone with plans, reports and other documents prepared by others. Ponderosa Homes understands that Cornerstone reviewed and relied on the information presented in these documents and cannot be responsible for their accuracy. Cornerstone prepared this report with the understanding that it is the responsibility of the owner or his representatives to see that the recommendations contained in this report are presented to other members of the design team and incorporated into the project plans and specifications, and that appropriate actions are taken to implement the geotechnical recommendations during construction. Conclusions and recommendations presented in this report are valid as of the present time for the development as currently planned. Changes in the condition of the property or adjacent properties may occur with the passage of time, whether by natural processes or the acts of other persons. In addition, changes in applicable or appropriate standards may occur through legislation or the broadening of knowledge. Therefore, the conclusions and recommendations presented in this report may be invalidated, wholly or in part, by changes beyond Cornerstone's control. This report should be reviewed by Cornerstone after a period of three (3) years has elapsed from the date of this report. In addition, if the current project design is changed, then Cornerstone must review the proposed changes and provide supplemental recommendations, as needed. An electronic transmission of this report may also have been issued. While Cornerstone has taken precautions to produce a complete and secure electronic transmission, please check the electronic transmission against the hard copy version for conformity. Recommendations provided in this report are based on the assumption that Cornerstone will be retained to provide observation and testing services during construction to confirm that conditions are similar to that assumed for design, and to form an opinion as to whether the work has been performed in accordance with the project plans and specifications. If we are not retained for these services, Cornerstone cannot assume any responsibility for any potential claims that may arise during or after construction as a result of misuse or misinterpretation of Cornerstone's report by others. Furthermore, Cornerstone will cease to be the Geotechnical- Engineer-of-Record if we are not retained for these services. Ponderosa Active Adult Community Page 23 132-2-1