W H R Durie Alder King Pembroke House 15 Pembroke Road Bristol BS8 3BA

22 September 2006 Our Ref: BD2006-Highbridge 060922

By Email & Post

Dear Mr Durie LAND AT NEWTOWN ROAD, HIGHBRIDGE, SOMERSET SUPPLEMENTARY GEOENVIRONMENTAL AND GEOTECHNICAL INVESTIGATIONS INTRODUCTION In line with recent discussions and E-Mailed correspondence, we are pleased to present a formal proposal for undertaking a programme of intrusive investigation and assessment for the above site. Our understanding is that Alder King wishes to prepare a technical sales package for the site, to inform prospective purchasers and the Regulatory Authorities of ground conditions and the steps that may be required to realise appropriate development. The focus of this proposal is therefore to allow for an appropriately scoped ground investigation that will provide the relevant baseline technical information to support these requirements. Parsons Brinckerhoff Ltd (PB) has carried out a Preliminary Contamination Assessment across a portion of the current development site back in 2001. The results of this study related to an area of approximately 1.5 ha and dealt primarily with soil and groundwater contamination issues. The new study site boundary includes the area assessed in 2001 but has been increased to accommodate an additional 0.7 ha. A geotechnical assessment did not form part of the previous scope of work data however this is now required to complement the technical sales package. SCOPE OF WORK In summary and in line with producing the most beneficial and informative selling package, the key technical requirements are as follows: To carry out a Tier 1 soil and groundwater quality assessment across the new, expanded development area. A re-appraisal / check on soil quality issues across area subject to 2001 study. To conduct a geotechnical appraisal for the entire site area complete with an option assessment for likely future foundation design.

The scope of work required to achieve the above is as follows: Review existing chemical data and findings in light of latest environmental legislation. Recover additional soil samples from the original area using trial pitting techniques in order to schedule more detailed chemical analysis. Investigate and sample soils / perched waters across the new extension areas using trial pitting techniques.

Construct two geotechnical boreholes to carry out insitu geotechnical testing and recover representative samples for laboratory geotechnical testing. Chemical analysis of both soils and perched groundwaters. Contamination & Geotechnical Appraisal. Report Merge, combining the findings of the 2001 study and the new 2006 assessment.

Our proposed re-sampling across the previous investigation area will be minimal. Having reviewed the soil chemistry data contained within the 2001 report and in light of Current Best Practice Guidance on the investigation and assessment of contaminated land, we consider it would be prudent to perform some reruns of certain chemical analysis. Whilst the previous soils metals analysis would appear reasonably comprehensive, speciation of the Poly-aromatic hydrocarbons (PAH) compounds for example was not carried out. Furthermore, laboratory detection limits were not as low as they now need to be and the MCERTS accreditation status required of laboratories today by the Environment Agency was not relevant in 2001. Contaminant screening criteria and guidance has advanced significantly over the past six years, with the advent of CLEA UK risk assessment modelling tools. Today assessments are more compound specific taking into account the toxicological and carcinogenic properties of a much broader range of potential contaminants. For the most robust assessment therefore and to fully satisfy the regulatory authorities, we are strongly recommending a limited re-run in the previous area and have costed for this accordingly. Desk Study We are in possession of the historical mapping information from the previous investigation and would look to make use of this data to expand our understanding of the site area and any implications the site history may have had across the new investigation areas. Although we not expect to have to purchase the mapping series for this study, we would recommend procuring the environmental data-sheets for the site considering the period of time that has elapsed since our last efforts. All in-house historical mapping data together with the updated environmental datasheets will be reviewed to provide an up-to-date understanding of the overall site and to guide investigation design. A robust initial Conceptual Site Model (CSM) for the site will be developed using this data, to be refined during the investigation and reporting phases. Intrusive Investigation The following sections set out proposed working methods, anticipated timescales and fees for all site works, plus chemical analysis scope and level of reporting. The work will be executed in accordance with best practice and with reference to BS5930: 1999 Code of Practice for Ground Investigation and BS10175 Investigation of Potentially Contaminated Sites. All field and laboratory geotechnical testing will be carried out in accordance with the Specification for Ground Investigation (Thomas Telford, 1993) and BS1377: 1990 Soils Testing Methods for Civil Engineering Purposes. Trial Pitting Investigation In the first instance we propose 2 No. days of trial pitting. This exercise will allow soil description and sampling to take place from discrete soil horizons ultimately feeding into the main contamination and geotechnical assessment. All trial pits would be excavated used a JCB type excavator to approximately 3 or 4 metres depth and we would expect to complete in the region of 8 - 12 pits in total. We would expect to excavate approximately 4 pits across the area previously investigated (2001 study), with up to 8 pits across new areas. On completion, trial pits would be backfilled in reverse order, compacted and left slightly proud of original surface level to allow for longer-term consolidation. At this stage we have not allowed for the trial pits to be surveyed to ordnance datum.

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Borehole Investigation We propose assessing groundwater, gas and geotechnical issues below the site by constructing 2 No. boreholes into the underlying superficial strata. It is anticipated that each borehole will need to be drilled to a depth of around 7 10 m below ground level (bgl). Each borehole will be fitted with combined groundwater and soil gas monitoring instrumentation (HDPE stand-pipes), completed with lockable covers. At this stage we have not allowed for the boreholes to be surveyed to ordnance datum. During the construction of each monitoring borehole Standard Penetration Test (SPT) data will be collected at regular depth intervals and bulk soil samples recovered for laboratory geotechnical testing. These data will feed into the overall geotechnical appraisal. All boreholes will be allowed time to adjust post installation and then developed, or purged, prior to groundwater sampling. Laboratory Analytical Testing Soil and Groundwater Chemistry Representative soil samples from each geological horizon will be recovered for analysis by a UKAS and MCERTS accredited laboratory for a comprehensive range of determinants. These will include those included under the CLEA guidance, as well as pH, nickel, copper, cyanide, sulphate, mercury, selenium, zinc, speciated PAH, TPH and volatile organic compounds. In addition, soils will be routinely screened for Asbestos Containing Materials (ACMs). A similar range of analysis will be carried out on representative groundwater samples recovered from the monitoring boreholes. We have allowed for the following number of samples in our proposal: Up to 12 No. soil samples for chemical analysis and/or leachability testing; and A total of 2 No. groundwater samples (one from each of the boreholes).

Geotechnical Testing In addition to in-situ field testing for geotechnical parameters, sub-sampling and laboratory geotechnical testing will be carried out on representative soil samples in accordance with the Specification for Ground Investigation Thomas Telford (1993) and include Particle Size Distribution, Atterberg limit testing, water soluble sulphate and pH analysis. Reporting A combined Geo-Environmental and Geotechnical baseline assessment report will be produced. The report will include geotechnical recommendations relevant to the proposed development, i.e. likely foundation requirements and allowable bearing pressures, and will provide a Tier 1 assessment of soil and controlled water contamination issues associated with the site, sensitive to a range of potential end uses (including a residential end-use). As a matter of course, the report will also incorporate the findings of our desk based review of the 2001 study and include a refined CSM. An assessment of soil gas risk will also be made and allowed for in any preliminary foundation design advice. The methods for all assessment will be in accordance with current best practice guidance. At this stage we feel it is unlikely that there will be a need for a fully quantitative soils or controlled water risk assessment. This therefore has not been costed for.

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PROJECT COSTS & FEES The project free breakdown for the above scope is presented as follows: Project Management and Reporting Site Supervision (inclusive of expenses) Investigation Contractor Costs (Drilling & Trial Pits) Chemical Laboratory Costs Laboratory Geotechnical Testing Total Lump Sum (Exc. VAT) 3,000.00 1,000.00 2,320.00 900.00 300.00 7,520.00

Report Assignment in the form of a collateral warrantee to an individual purchaser will be made available for the additional sum of 1,000.00 (Exc. VAT). The works will be invoiced lump sum upon issue of the final report. The fee is inclusive of all expenses but exclusive of VAT. Our fee proposal does not at present include for attendance at meetings with any of the Regulatory Authorities or other parties. TERMS & CONDITIONS The works will be invoiced lump sum upon issue of the final report. The fee is inclusive of all expenses but exclusive of VAT. Our fee proposal does not at present include for attendance at meetings with any of the Regulatory Authorities or other parties. PB is one of the largest environmental consultancies in the UK and would use all reasonable endeavours in the execution of our professional services. Our standard Conditions of Engagement provided herewith cover in detail the terms under which our services are offered, including issues relating to liability. All work would be carried out in accordance with our standard conditions of engagement with the following additional clause. . Unless otherwise agreed, the Client shall obtain any licenses, sanctions or authorities for the time required by law for the execution of the Services, as well as any wayleaves, rights of way or access as necessary. The Proposal does not include for carrying out a services search. Parsons Brinckerhoff (PB) shall not be responsible for damage to any services, or costs of repairs or arising from such damage, unless such services are clearly marked on the site and/ or shown on services drawings provided to PB by the Client. Notwithstanding this, every reasonable effort will be made, by PB to avoid services during the execution of investigation works. PROGRAMME The anticipated timescales for each project component is as follows: Mobilisation Completion of all Site works Groundwater sampling Geotechnical & Chemical Analysis turnaround Final Reporting 10 days 5 days 1 day 10 days 10 days

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CLOSURE We trust that our proposal for this site meets with your approval and that our rationale and methodology has been presented clearly. We will look to mobilise contractors at the earliest opportunity to allow for the investigation work to be completed within agreeable timescales. Please contact the undersigned at your earliest opportunity should you have any queries and to confirm your intentions.

Yours sincerely Parsons Brinckerhoff Ltd

GIDEON JONES Senior Consultant Proposal & Project Manager

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PARSONS BRINCKERHOFF LIMITED CONDITIONS OF ENGAGEMENT (SHORT FORM)

1. DEFINITIONS In these conditions, which are to be read in conjunction with the provisions contained in the Offer, the following expressions shall have the meanings hereby assigned to them except where the context otherwise requires: 1.1 Agreement means these conditions together with any special conditions contained in an appendix hereto and the Offer. 1.2 Client means the person, company or body named in the Offer as the recipient of the Services and the legal successors in title to that person, company or body. 1.3 Contractor means the company or companies responsible for any implementation or construction utilising the Services or its deliverables. 1.4 Offer means PBs letter, tender or proposal to the Client that is the subject of the Agreement. 1.5 Party means the Client or PB and Parties means the Client and PB together. 1.6 PB means Parsons Brinckerhoff Limited. 1.7 Services means the scope of services to be performed by PB as set out in the Offer. 2. COMPENSATION AND PAYMENT 2.1 Compensation for the performance of the Services by PB shall be as specified in the Offer. Unless otherwise indicated, PB shall invoice the client monthly for the Services performed during the period, and for reimbursable costs and charges incurred during the period in performance of the Services, and the Client shall make payment of the amount of the invoice into PB designated bank account within thirty (30) days after the date of the invoice. Compensation shall be exclusive of any value added or equivalent tax, and any such tax which is payable on the provision of the Services to the Client shall be paid by the Client as part of the invoiced sum and invoices will separately identify this tax. 2.2 If the Parties agree to amend the law of the Agreement to reflect the place where the work is being performed, in accordance with condition 12, then: (a) any amount not paid in accordance with condition 2.1 shall attract interest from the due date until receipt of payment by PB at a rate equivalent to 4% per annum above the base lending rate of PBs designated bank; and (b) the compensation specified in the Offer shall be exclusive of all taxes levied in the country where the work is being performed, including but not limited to such taxes as, corporation tax, withholding tax, value added tax or equivalent, personal income taxes, social security charges and all other duties, imposts and charges arising from the performance of the Services under the Agreement. Any and all such taxes, social security charges, duties, imposts and charges imposed upon PB shall be paid by the Client as part of the invoiced sum. 3. CHANGES 3.1 Scope The Services are based on facts known at the time of preparation of the Offer, which may include information made available to PB by the Client. Subsequent information may indicate that the Services need to be amended. In such case, PB will promptly provide the Client with an amendment to the Services to which the Client shall respond in writing within a reasonable period

Ref. COE (SF), Rev1, Oct05

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of time, considering the circumstances of the amendment, but in no event longer than twenty eight (28) days, otherwise such amendment to the Services shall be deemed to have been approved by the Client. Where the Agreement has been amended by deemed approval, PB shall, within a reasonable period of time, issue a notice to the Client confirming such amendment. Additionally, the Client may by written instruction make such changes to Services as are agreed in writing between the Parties. In any of the above circumstances, PBs compensation shall be adjusted accordingly and thereafter PB shall commence performance of the amended Services. 3.2 Programme The Client shall upon the request of PB grant an extension to any planned programme for performance of the Services, as defined in the Offer and, if appropriate, an adjustment to PBs compensation, if PB has been delayed or impeded in the performance of the Services by (a) a change order granted hereunder, (b) any delay caused by the Client, (c) an event of Force Majeure being any event beyond the control of PB, (d) a suspension for any reason, (e) any change of law, or (f) any other reason mutually agreed by the Parties. 4. WARRANTY 4.1 PB warrants that the Services shall be performed by PB with reasonable skill, care and diligence in accordance with accepted professional engineering and consulting standards and practices existing at the date of performance of the Services and that the Services shall conform with any contract specifications and drawings described in the Offer. PBs liability arising out of the performance of the Services for any breach of this warranty shall be limited to (a) re-performance of any portion of the Services to correct the breach or (b) the direct consequences of such breach where such breach was reported to PB in writing within one year of the date of performance of the relevant portion of the Services. However, the Consultants maximum liability arising out of or related to the Services shall be subject to the limitations set out in condition 5 herein. 4.2 All warranties other than the above, whether express or implied, including without limitation any warranties of merchantability or fitness for purpose, are expressly excluded. 5. LIABILITY 5.1 PB shall not be responsible for the construction means, methods, techniques, sequences, procedures, safety precautions, and programmes incident thereto; nor for the acts or omissions of the Client or of the Contractor or any of the Clients or the Contractors agents, employees or subcontractors; nor for the acts or omissions of material or equipment manufacturers or suppliers; nor for the acts or omissions of any other engineer or consultant. 5.2 No Collateral Warranty will be provided by PB unless the Client has advised, prior to the commencement of the Services, that a warranty will be required. Sufficient time shall be allowed by the Client, for negotiating the warranty. 5.3 Notwithstanding any other provision herein, save to the extent precluded by law, PB shall not be liable for any loss of profit, loss of revenue, loss of use of any facilities, or loss of product or production or any indirect or consequential losses howsoever arising. Legally enforceable direct losses shall be limited to PBs compensation for the Services. 5.4 Subject to condition 5.3, the liability of PB for any claim or claims shall be limited to such sum as PB ought reasonably to pay having regard to PB's responsibility for the loss or damage suffered by the Client on the assumption that the Contractor, all other contractors, subcontractors, consultants, sub-consultants, project managers and advisers shall have: (i) provided contractual undertakings to the Client in respect of the performance of their obligations on terms and conditions no less onerous than those set out in the Agreement; and (ii) paid to the Client such proportion which it would be just and equitable for them to pay having regard to the extent of their responsibility.

Ref. COE (SF), Rev1, Oct05

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6. INSURANCES PB shall at its own cost and expense maintain workers compensation, employers liability, motor vehicle, public liability and professional indemnity insurance coverage in amounts in accordance with legal requirements and PBs own business requirements. 7. PROJECT INFORMATION The Client shall make available to PB all data on project scope, schedule, cost and quality requirements and other information reasonably necessary to allow PB to perform the Services and PB shall be entitled to rely upon all such information made available by the Client. 8. INTELLECTUAL PROPERTY RIGHTS Copyright of all drawings, reports, and other documents provided by PB in connection with the Services shall remain vested in PB but the Client shall have a licence to copy and use such drawings, reports, and other documents and to reproduce the designs contained in them for any purpose related to the project in relation to which the Services are performed. PB shall not be liable for any use by the Client of any of the drawings, reports, or other documents for any purpose other than that for which the same were prepared and provided by PB. 9. CONFLICTS OF INTEREST Whilst PB has established procedures to identify situations where a conflict of interest may arise, PB cannot be certain that it will identify all of those which exist or may develop, in part due to difficulty in anticipating what the Client may perceive to be a conflict. If the Client is aware or becomes aware of any potential conflict affecting PBs provision of the Services, the Client will notify PB immediately. Where a potential conflict is identified and PB believes that the Clients interests can be properly safeguarded by the implementation of appropriate procedures, PB will agree with the Client the arrangements that PB will implement to preserve confidentiality and to ensure that the advice and opinions that PB give are wholly independent. Just as PB will not use information confidential to the Client for the advantage of a third party, PB will not use confidential information obtained from any other party for the Clients advantage. 10. TERMINATION/SUSPENSION The Client may terminate the performance of the Services if PB is in material breach of its obligations herein and PB has not commenced to remedy that breach within thirty (30) days after receipt of a written notice to that effect from the Client. PB may suspend or terminate performance of the Services if any compensation payable to PB has been outstanding for more than sixty (60) days from the date of PBs relevant invoice. In the event of termination of the performance of the Services, the Client shall make payments to PB for, (a) all invoice and interest amounts outstanding at the date of termination, (b) that part of the Services completed up to the time of termination and (c) all expenses of termination incurred by PB in connection with the performance of the Services. 11. GOVERNING LAW The performance of the Services shall be governed by and construed in accordance with the laws of England and shall be subject to the jurisdiction of the English Courts. 12. CHANGE IN LAW Should the applicable laws, rules or regulations of England (or of the place where the work is being performed, if other than England) be changed, enacted or reinterpreted after submission of the Offer in such a manner as to cause an increase in cost to PB or to delay the planned programme, then PBs compensation and the programme shall be adjusted accordingly. 13. NOTICES Unless otherwise agreed, notices shall be served on the registered office of the relevant Party. Notices may be served personally, by pre-paid mail, by e-mail or by facsimile. Notices shall be deemed served immediately if served personally or by facsimile or e-mail or seven days from the

Ref. COE (SF), Rev1, Oct05

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date of the notice if served by pre-paid mail. Notice of termination may not be served by e-mail or by facsimile. 14. NON-POACHING 14.1 The Client agrees that it shall not during the period of the Agreement and for 12 months after its termination, recruit or engage directly or indirectly, whether as an employee, independent contractor or otherwise any person who has at any time during the 12 months immediately prior to such termination been employed or engaged by PB in carrying out the Services and with whom as a result the Client had material contact with during the 12 months immediately preceding the termination of the Agreement. 14.2 Whilst the undertaking in condition 14.1 is considered by the Parties to be reasonable in all the circumstances, if any part of it is held invalid as an unreasonable restraint of trade or for any other reason but would have been held valid if part of the wording had been deleted, the period reduced or the range of activities or area dealt with reduced in scope, the undertaking will apply with such modifications as may be necessary to make it valid. 15. DISPUTES Any dispute or difference arising out of the Agreement shall be resolved in good faith by the Parties. If the Parties cannot resolve any such dispute or difference, then it shall be referred to the arbitration of a person to be agreed upon between the Client and PB or, failing agreement, nominated by the President for the time being of the Chartered Institute of Arbitrators. The rules of arbitration shall be those of the London Court of International Arbitration and unless agreed otherwise the place of arbitration shall be London, England. 16. SPECIAL CONDITIONS Any special conditions shall be set out in an appendix hereto. In the event of conflict, such special conditions shall take precedence over these standard conditions. 17. ENTIRE AGREEMENT The Agreement constitutes the entire agreement between the Parties and no changes, modifications or amendments to the terms and conditions of the Agreement shall be valid unless agreed to by the Parties in writing and signed by their authorised officers. Should there be any conflict between the terms and conditions of the Agreement and any other documentation or correspondence then the terms and conditions of the Agreement shall prevail. 18. ASSIGNMENT PB reserves the right to assign or novate this contract to any other Parsons Brinckerhoff company on giving reasonable notice to the Client in writing. 19. THIRD PARTIES The Contracts (Rights of Third Parties) Act 1999 shall not operate to confer any rights on any person who is not party to this contract. 20. WAIVER Failure by PB to exercise or enforce any right or remedy conferred by the Agreement shall not be construed as a waiver of any other right or remedy conferred by the Agreement at that time, or a waiver of that right or remedy or any other right or remedy conferred by the Agreement at any other time. 21. SEVERABILITY Invalidity or unenforceability of one or more provisions of the Agreement shall not affect any other provision of the Agreement.

Ref. COE (SF), Rev1, Oct05

PB Conditions of Engagement (Short Form).doc