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March 25, 2010 Project: Project Location: Re: Architecture & Interior Design Consulting Proposal

Based on the detailed review of the current site layout and our initial concept meeting, the following is our proposal for overseeing the project, architectural concepts and interior design consulting services to be performed by (Design Firm), as defined within the Scope of Work (Project) and Scope of Services. Scope of Work Architectural consulting, concept & interior design for your home as outlined in a Scope of Work would include all of the following: (Phases I IV)

Interior design consulting as it relates to the interiors Master Bedroom Demo of existing bedroom

Scope of Services Phase I - Feasibility The objective of this phase is to evaluate the conceptual design requirements of the project, prepare and present design concepts for preliminary review and approval.

Establish Scope of Project Establish Functional and Design Criteria with Owner Schematic Space and/or Furnishings Plan

Phase II - Schematic Design The design concept is more developed and drawn from the approved preliminary concepts presented in Phase I. Documents are prepared which include initial space and furniture plans, lighting concepts, and concepts for colors, material and finishes, and the selection of specific furnishings. Define Interior Concept Design Refine and Develop Furniture Plans

Identify Colors, Materials, and Finishes for Each Area Delineate Furniture Style Concepts Conceptual Design Presentation

Phase III - Design Development & Documentation This phase is an extension where all architectural documents and preliminary furniture specification are prepared for approval and implementation. The following will be drawn to be incorporated in an architectural documentation package. The plans submitted are not intended to be architectural permit plans which would be submitted to the building department. They are to be used by the client, contractors and architect for design intent, non structural layout, and fixture locations only.

Fixture and Furniture Plans Finish Plans & Elevations Prepare Design Development Estimate for Overall Project

Phase IV - Specifications & Purchasing Furniture & Finish Specification Documents The package shall describe in detail the following information to properly establish a budget for the areas within the Scope of Work.

Detailed Specifications Dimensioned drawings (construction documentation for design intent) Vendor Cut Sheets Finish Samples Material Samples

Upon completion and approval of construction documentation any additional changes will be performed on a time and expenses basis in accordance with our standard hourly rate schedule listed below. Furniture, Fixture, Equipment & Materials Purchasing In this part of the phase we will create all of the purchase orders for the FF&E and materials from the specifications written and issue and track vendor production. Design Firm will purchase all FF&E for the project. Issue Purchase Order Issue Vendor Checks Track Production Cycle Quality Control

Exclusions to Scope of Services Design Firm services specifically exclude any fees necessary to retain certain professionals or services for the project. Such professionals and services are, but are not limited to;
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Architect (Registered to File Documents) Engineer Electrical Consultant General Contractor or Sub Contractors Obtaining Permits of any kind

Design Firm will not be held responsible or liable in anyway for the quality and/or timeliness of professional work/services as may be needed to complete the project. Compensation: Project Design Fee This Design Consultation; Phase I IV, will be performed on a time and expenses basis in accordance with our standard hourly rate schedule listed below. A retainer of $3,500 is to accompany the signed contract. The retainer is not used to bill against hours at the beginning of the project but rather it is held in promise of final balances to be paid at the conclusion of the project. Any additional services beyond the defined Scope of Work will be performed on a time and expenses basis in accordance with our standard hourly rate and will be approved by you in writing before commencement. Schedule of Hourly Billing Rates Principal Senior Designer & Decorator Support: Design, Production, Contract Administrator $175.00/hr $110.00/hr $60.00/hr

Purchasing Fee When provided, Design Firm extends all design and trade discounts directly to the client. A flat 20% purchasing fee is added as a standard sourcing fee on all sourced items. Invoicing & Payments Invoices will be submitted periodically rather than as a super-bill at the conclusion of the project. Please make checks payable to . Payments are due within ten (10) days of being submitted. Failure to fulfill this obligation will result in an immediate ceasing of work. A resumption of work will begin upon receipt of the outstanding payment. In the event of any delays such as permits, design changes, or outstanding payments Design Firm will not be held responsible for the loss of any contractors or sub-contractors and/or their refusal to return to the project. Design Firm shall perform its services in a professional manner consistent with a mutually agreed upon schedule. Design Firm shall be entitled to additional compensation if completion of these services is delayed through no fault of Design Firm beyond the proposed completion date for the Project. Design Firm shall not be responsible for delays caused by circumstances beyond their control. We will proceed ahead with the design work based on your written approval and receipt of the consulting retainer. Please make checks payable to .

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Sincerely,

Agreed and Approved _________________________ Owner

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TERMS AND CONDITIONS a. DESIGNER'S DISCLOSURE AND RESPONSIBILITIES Designer will perform services as expeditiously as is consistent with professional skill and care and the orderly progress of the Project. Designer will not be responsible for the means, methods or procedures of construction, fabrication, delivery or installation, or safety precautions in connection with the Project; for the acts or omissions of the contractor or any subcontractor, supplier or other person performing the work on the Project; or, for any failure of them to meet any schedules or completion dates. It is the Designers responsibility to interpret to the best of his/her ability and to integrate the needs and desires of the Client. Designers fees are not contingent upon the Clients' approval of design work, but rather upon the time actually spent on the Project. b. CLIENT'S RESPONSIBILITIES Client will provide full information regarding the Clients requirements for the Project. Client shall furnish all legal, accounting and insurance services as may be necessary at any time for the Project. Any drawings, schedules and specifications, services, information, surveys and reports provided by the Client pertaining to the Project will be furnished at the Client's expense, and Designer will be entitled to rely on the accuracy and completeness thereof. If Client becomes aware of any fault or defect in the Project, prompt written notice shall be given by Client to Designer. Client will render decisions as expeditiously as necessary for the orderly progress of Designer's services and the Project. Any merchandise ordered for the Client by the Designer and shipped or delivered directly to the Client or Project site must be opened and carefully inspected by the Client within two (2) days of receipt of such merchandise. In addition Client will provide suitable space for the receipt, inspection and storage of any such materials and /or equipment. Any shortage or damage must be reported to the Designer immediately. Designer cannot be held responsible for arranging repairs, replacement or freight claims for such merchandise when the above requirement has not been met. c. PROJECT COST

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The "Project Cost" is the total actual cost of all elements of the Project designed, selected or provided for by Designer. Designer does not warrant or represent that bids or negotiated prices will not vary from Designer's estimate of the Project Cost. Designers fees are not contingent upon the actual execution of the proposed project. If the project is abandoned for whatever reason or continued without the assistance of this office, all fees incurred to date will become due and payable immediately. d. OWNERSHIP AND USE OF DOCUMENTS Drawings, Schedules and Specifications are and will always remain the property of Designer. Client is permitted to retain copies of Drawings, Schedules and Specifications for information and reference in connection with the Project. Client may not use Drawings, Schedules or Specifications for other projects or additions to this Project, or for completion of this Project by others, unless Designer is in default under this Agreement, except by an agreement in writing providing for appropriate compensation to Designer. e. MISCELLANEOUS PROVISIONS Unless otherwise specified, this Agreement will be governed by the laws of the State of California. Either Client or Designer can assign, sublet of transfer any interest in this Agreement. This Agreement represents the entire agreement between Client and Designer and supersedes all prior negotiations, representations or agreements, either written or oral, all of which are rescinded. This Agreement may be amended only by a written instrument signed by both Client and Designer. g. GENERAL NOTES The rates provided in this agreement are valid for one year, and subsequent to that date are subject to revision in accordance with Designer's standard fee schedule for such work in effect at that time. Fees quoted herein are for the provision of professional services. The balance of any remaining unpaid fees is due upon delivery of the design specifications. A late fee of 1.5% per month will be charged on any balances outstanding over thirty (30) days
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If the Scope of the Project or of the Designer's services is changed materially, the amounts of compensation shall be equitably adjusted. Designer shall prepare all necessary purchase orders, submitting invoices with deposit requests to Client for approval. Payments shall include sales tax, packaging, freight and delivery charges on merchandise ordered for Client by Designer. Cancellation of items in progress may incur charges according to manufacturers' specifications. There will be an additional 10% charge levied by Designer for paperwork and follow-up on cancelled items. All sales of custom-ordered merchandise are final and non-refundable. Warrantees on merchandise are extended by each manufacturer separately, and vary from item to item

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h. TERMINATION OF AGREEMENT This Agreement may be terminated by either party upon written notice should the other party fail substantially to perform in accordance with its terms through no fault of the party initiating the termination. This Agreement may be terminated by Client upon at least seven days' written notice to Designer in the event that the Project is permanently abandoned. In the event of early termination of the Project for any reason the Designer will be compensated for all services performed to the termination date, including all reimbursable expenses and all design fees incurred to the date of termination. Client has the right to cancel this agreement at any time prior to midnight of the third business day after the date of this Agreement. i. ARBITRATION All claims, disputes and other matters in question between the parties to this Agreement arising out of or relating to this Agreement or any alleged breach of it shall be decided by arbitration at Los Angeles, California in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association then obtaining, unless the parties agree otherwise. No arbitration relating to this agreement will include any additional person not a party to this agreement except by written consent of Client, Designer and the additional persons in question In no event shall any demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statutes of limitation. The award rendered by the arbitrators shall be final. If the disputed amount is less than the jurisdictional limit for small claims such court shall be used in place of arbitration. Should there be any legal action between Designer and Client or arising out of this agreement, the prevailing party shall be paid reasonable legal fees.

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