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October 6, 2010

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TABLE OF CONTENTS ................................................................................................ 2 

►COMPANY INTRODUCTION: .................................................................................................... 3 ►IRRIGATION: ........................................................................................................................... 4 ►SCOPE OF WORK .................................................................................................................... 5 ►COMMUNICATION .................................................................................................................. 5 ►STARTING WITH A PRIORITY PLAN ......................................................................................... 6 ►AGRONOMIC CALENDAR ........................................................................................................ 7 

AGRONOMIC CALENDAR ........................................................................................... 7 

PRICING SUMMARY ................................................................................................... 9 

GENERAL TERMS AND CONDITIONS ......................................................................................... 13 

Table of Contents

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4570 Alvarado Canyon Rd. Ste G San Diego, CA 92120 tel: 619.241.4477 fax: 619.241.2084 www.aguilarhomesinc.com License # 912852

►COMPANY INTRODUCTION:

Michael Jackson October 12, 2010 Terra Nova Condominiums LLC 5160 Alvarado Canyon Road San Marcos, CA 92068 RE: COMPANY INTRODUCTION FOR FIREBIRD MANOR APARTMENTS Dear Mr. Jackson, Before anything, I thank you for your time & effort in learning about our company. Welcome to “THE ONE STOP SHOP!” the perfect outfit for an asset management company. We are a General Contracting company that has seen the need for a “ONE STOP SHOP!” A program for the property management community. A.H.Inc. specializes in grounds and building maintenance, offering to improve your site appearance and maintenance needs at a low cost. We will provide you with labor proposals and annual landscape schedules which can be tailored to your property budget. You will also receive a $500.00 dlr deductable which you can apply towards any repair of your choice. I have included a sample of both the labor proposal and annual landscape schedule with intensions of showing the type of service we have and the detail that we put forth for all our clients. Here at A.H.Inc. we go a step further by acquiring the property infrastructure, architectural and improvement plans, to use as a tool for any type of emergency that may arise 24-hours a day, therefore ensuring prompt and accurate troubleshooting and repair. A.H.Inc. can go from grounds to building maintenance due to its skilled and certified experts encompassing Plumbing, Electrical and Carpentry services. By meeting our eligibility requirements you automatically lockdown the mentioned trades at $25.00/hr, 24/7, while reducing your liability exposure with our insurance. We will tailor our frequency and hours to suit you, our client. We understand how to meet your specific contracting needs, how to stay within budget, and meet deadlines. Our experience and expertise bring value to our services, value to you, and value to your property. We offer the following options for your company to be eligible for these discounted rates 24/7.

1. Through a Landscape Contract 2. Making us your exclusive contractor for two or more properties 3. A referral that leads to a contract

I will appreciate the opportunity to come by and introduce myself and tell you about the services we have to offer and how we can simplify your general maintenance needs. Please call 619-454-1406 and I will make myself available at your convenience. Sincerely, Chris Aguilar Chris Aguilar Project Manager

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►IRRIGATION: From our observation the irrigation system lines are not properly distributed and or functioning correctly thus causing insufficient coverage. SOLUTION: If awarded the maintenance contract we will conduct a thorough irrigation inspection that will include valves, sprinkler heads, verifying they are working at full capacity, and checking controllers to make sure they are not being tampered nor damaged. We will evaluate the current conditions, identifying deficiencies and needed repairs of the irrigation system. We will take a proactive approach in recommending any future preventative maintenance repairs of the irrigation system. SUSTAINABLE LANDSCAPE: The plants in the picture demonstrate the lack of detail that is needed to maintain the landscape at Firebird Manor Apartments. During our walk we noticed dry patches. SOLUTION: We will hand manicure the plants and pay close attention to detail in providing a pristine appearance. Through proper planning and maintenance a strategic landscape management plan can help save you money and enhance the beauty of your landscape. By simply utilizing common plants that have the same type of growth, not over watering, fertilizing, and pruning along with incorporating pest management practices encourage healthier, disease-resistant plants and reduce the amount of run-off entering the drains. Note that when plants are overgrown they start demanding more water and start taking water away from surrounding plants, they also invite pest. We will also pick up any trash that will affect the landscape appearance and the plants.

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►SCOPE OF WORK –A.H.Inc. proposes to have landscapers , 1 time per week or as needed between the hours of 8:30am- 4:30pm excluding Fridays, and will maintain all groundcover and shrub beds, edging, detailing, weeding and general clean up on a consistent basis. For pruning, edging, and trimming, the property will be divided into maintenance sections and be sequenced through. All agronomic applications such as fertilization, weed control, pest control, mulch, and fungicides labor is included in our maintenance program. Any trimmings or debris generated from our landscape operation is to be picked up and removed from the property after each service visit. We do not charge for mulch nor do we charge for our fertilization, weed control, and pest control, and much more are all part of our scope of work. Please refer to our Practical Specifications for more information it is located at the end of the contract. Landscapers are to be the same employees every visit and in A.H.Inc. uniform at all times.

This property qualifies for a yearly $500.00 dls. deductable, which is included. Not to exceed $500.00 dls per year.

►COMMUNICATION A.H.Inc. will conduct a regularly scheduled walk through with you to ensure quality of the landscaping and determine areas of improvements. We will offer solutions that will specifically address your landscape needs. As your landscape maintenance partner, A.H.Inc. will assign an Account Manager to work with you to identify landscape maintenance priorities throughout the property. We will jointly develop action plans to accomplish those priorities, and execute the action plans within an agreed upon timeframe. We will also work with you verifying that plants are being prune and not being overgrown as shown on this picture. The success of this transition requires proper planning and communication between our team and yours. A.H.Inc. will work with you in providing any safety issues regarding the landscape for example the palm tree in the picture. This tree needed to be taller or replaced with a low profile species. This obstruction can cause an accident with an oncoming vehicle or bicyclist.

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►STARTING WITH A PRIORITY PLAN As your landscape maintenance partner, A.H.Inc. will work with you to identify landscape maintenance priorities throughout the property. We will jointly develop action plans to accomplish those priorities, and execute the action plans within an agreed upon timeframe. The success of this transition requires proper planning and communication between our team and yours. A.H.Inc. is in a unique position to provide you with a seamless, successful and hassle free transition. Your priorities will be classified up into 30, 60 and 90 day goals, (or longer).

Job Start-up Plan 30 60 90 Propose Solution

Account Manager - introduction by A.H.Inc. Project Developer to property contact X Communication - review type/frequency and preference (email, phone, forms, etc)

Broadleaf weed application NOTE: Will require two or more applications X X Pre-emergence application to inhibit new weed germination X

Remove weeds in plant beds, hardscape, and raised planters XPrune selected shrubs XRemove plants too close to tree trunks, groundcover crowding shrubs, and poor performing/declining plants

X

Mulch planters showing bare dirt XBevel cut edges of groundcover adjacent to hardscape XIron Chelate - apply to correct chlorotic shrubs XInsect and Disease Control application for treatable diseased plant material XID poor performing plants and propose appropriate replacements X X

Prune selected trees X Need tree wells installed X XTrees are staked incorrectly or too long X X

Upon completion of start-up work, additional written recommendations may be provided for seasonal color, plant replacements or other concerns encountered.

X X

Sprinkler Heads -check for proper operation and coverage XController - check/adjust for time, valve / program sequencing and seasonal setting XRC Valves - check for proper operation and leaks XBackflow/Pressure Regulator - check for proper operation XGate Valves/Quick Coupler - check for proper operation and/or leakage XMap the system showing locations of major components XSoil Profile - sample with a soil probe and adjust watering for desired moisture XUpon completion of the evaluation we will ID over/under watering or other irrigation concerns and recommend necessary repairs/upgrades

X X

Drainage Problems - ID and propose solutions X XSoil - test for nutrient deficiencies and presence of toxins X XMicro-environments existing adjacent or between structures X XAs part of an integrated landscape management program we will identify underperforming areas of the landscape and create a long-term improvement plan

X X

Tree Action Plan

Seasonal Color Action Plan

Communication Plan

Miscellaneous Items Action Plan

Irrigation Action Plan

Turf Action Plan

Shrub and Bed Action Plan

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►Agronomic Calendar This chart describes the scope of work for your property and the targeted frequency we will perform each service each month.

Turf MaintenanceAs

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALMow 4 5 4 4 5 4 4 4 2 36Trim 4 5 4 4 5 4 4 4 2 36Edge 2 2 2 2 2 2 2 2 2 18Pre-emergent weed control 1 1 2Post-emergent Weed control X 1 1 2Disease Control XBackpack blowing (Weekly) XInsect Control XFertilizer 1 1 1 1 4

Shrub & Bed MaintenanceAs

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALTrim 1 1 1 3Weed 1 1 1 1 1 1 1 1 1 1 1 1 12Edge 2 2 2 2 2 2 2 2 2 18Fertilization 1 1Pre-emergent weed control 1 1Post-emergent Weed control 1 1 2Disease Control XInsect Control X

Tree MaintenanceAs

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALInsect Control up to 12' hgt. XTrimming 1 1

Misc. MaintenanceAs

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALAeration/Overseed 1 1Core Samples(Soil Samples) 1 1 2Leaf Removal 1 1 1 3Mulch (Annual Beds)Pinestraw Install 1 1

Irrigation As

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALCheck and Adjust 1 1 1 1 1 1 6Spring Start Up 1 1Winterization 1 1

Seasonal ColorAs

Needed JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALChange Out 1 1 2Bed Preparation 1 1 2Fertilization 1 1 2

Agronomic Calendar

Agronomic Calendar

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►Service Quality Assurance High standards for service excellence and landscaping are an area where “perfection” must be the goal. Our focus and attention to detail will ensure we are delivering the highest level of service possible at all times. You will therefore see quality inspections, comprehensive crew training, a detailed process to support this training, focused attention from an Account Manager, and our encouragement of greater participation from you to ensure that the detail consistently meets your expectations. The following outlines our operating philosophies and quality control programs to assure you of our commitment and experience achieving the highest of client expectations: ►OPERATIONAL PHILOSOPHY

A.H.Inc. is a client-focused, horticultural organization. Our mission is to cultivate long-term, mutually beneficial relationships with our clients and our employees. Success in our mission will promote enhancement of our client’s business and create more opportunities for our company and our employees. To fulfill our mission, we strive to: Meet and exceed our client’s expectations.

Remain the industry’s leader in quality, technology and service innovation.

Provide a full-range of cost effective solutions for our clients.

►OPERATIONAL PRIORITIES

Identify and actively seek clients who value our level of commitment.

Design our systems to meet the needs of our clients and operate with the highest productivity.

Help our clients create and sustain value through their landscapes.

Select, train and retain employees capable of executing our mission, and reward and promote superior performance.

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►OUR FOCUS ON QUALITY AND DETAIL Our diversified training and communication methods allow us to manage client expectations proactively. One of the successful ways A.H.Inc. ensures quality performance is by utilizing a structured self-evaluation process. The crew’s compensation is based in part on the success of their job’s quality ratings. Action plans are created to make sure the job quality is continuously improved. ►Pricing Summary

An effective landscape management program is sustainable and provides value. We are confident your property will benefit greatly from our efforts to create beauty in the appearance of your landscape while our operational efficiencies create value to your budget.

Our team is committed to integrating the specific landscape needs of your property with your service expectations and budget considerations. Giving careful consideration to the individuality of your landscape, A.H.Inc. Grounds and Building Maintenance provides the following competitive pricing to help you enhance the quality of your landscape.

Upon your approval of the attached Scope of Work and Pricing, a Contract will be prepared for your signature. The Contract will include the Scope of Work, Practical Specifications for Landscape Management and General Terms and conditions.

Pricing Summary

PRICING MATRIXBasic Services Price/Mo Base Management Price $ 450.00

Additional Services Month Twice a year seasonal planting

Detailing Pruning Trimming Weed Killer $ 45.00 Total Additional Services $ 45.00

Total Monthly Management Price $ 495.00

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Practical Specifications for Contract Landscape Management

I. Scope of Work: Contractor shall furnish all horticultural supervision, labor, material, equipment and transportationrequired to maintain the landscape throughout the contract period, as specified herein. The scope of our services shall be based exclusively on those items approved and initialed on PageOne (1) of our Proposal document.

II. Lawn Care:

A. Mowing and Edging:

Lawns shall be mowed more frequently during the active growing season and as neededduring other seasons. During extended rainy or dry periods mowing will take place asconditions dictate. Mowing height will be based on what is horticulturally correct for the turfvariety taking into account the season.

Clippings shall not be caught and removed from lawn area unless they are lying in swathswhich may damage the lawn.

Edges shall be trimmed to maintain a neat appearance.

B. Fertilization:

Lawns shall be fertilized as warranted with a commercial fertilizer. The number ofapplications will be dependent on the type of nitrogen used and the type of turfgrass.

C. Disease control:

Disease control is maintained through proper fertilization, mowing and water management.In the event that disease problems occur Contractor will use treatments to stop or slowprogression of disease. This program does not include the prevention of disease with weeklyor monthly applications of disease control products although such protection is available atsubstantial additional cost.

Disease caused by infestation of nematodes (microscopic round worms that feed on roots) isnot included. Currently, there is no effective nematode control product registered for use onlandscapes. Contractor will recommend additional treatments and procedures to minimizedamage should nematodes become a problem. These treatments will be provided at additionalcost. Nematode control is available for some sports turf locations and will be quotedseparately if required.

D. Insect control:

Contractor will provide control of turf damaging insects using Federal and State registeredinsect control products as needed to prevent or mitigate turf damage. These treatments do notinclude the prevention of fire ant infestation which is available at added cost.

E. Weed control:

Contractor will use proper fertilization, mowing and watering practices to promote the growthof weed resistant turf. Additionally, applications of pre and postemergence weed controls willbe applied at times if warranted to control weeds without damaging desirable turf. Recentchanges in Federal regulations have resulted in our loss of ability to selectively control someweeds including crabgrass when they are present in St Augustine. The only control of theseweeds is to treat infested turf with non selective products such as Roundup. These treatmentsrequire the resodding which will be quoted at additional charge.

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III. Ground Cover Area/ Shrub Areas:

A. Edging:

Edge ground cover as needed to keep within bounds and away from obstacles.

B. Pruning:

Shrubs shall be pruned only as necessary to maintain the natural form of the plant, to maintaingrowth within space limitations, and to eliminate damage or diseased wood. This excludespruning necessitated by storm damage, disease, neglected overgrowth or winterkill.

C. Weed Control:

Keep beds reasonably free of broadleaf or grassy weeds, preferably with pre-emergent and/orselective post-emergent/contact herbicides.

Pre-emerge: This type of control should be used only if a known weed problem warrants itsuse.

Post-emerge: Control broadleaf weeds with selective herbicides.

The chosen chemical will be recommended and legally approved for the specific weedproblem.

D. Fertilization:

Apply fertilizer as warranted. The number of applications will be dependent on the type ofnitrogen used and the type of plant material.

E. Fungicide:

Apply recommended, legally approved fungicides to control disease-causing damage toornamentals if warranted.

F. Pesticide:

Apply recommended, legally approved pesticides to control insects causing damage toornamentals if warranted.

G. Control of imported pests:

Certain locations in the United States have a record of accidental introduction of pests fromother countries. These imported pests can be very damaging and difficult or impossible tocontrol with available products. Where such pests become a problem Contractor willrecommend the most cost effective alternatives for pest mitigation. Such recommendationsmay include plant replacement or intensified treatment schedules that may require additionalcost to the customer.

IV. Slope Care: <Insert if applicable or not>

A. Edging:

Edge as needed to keep plant material within bounds and away from obstacles.

B. Weed Control:

Maintain slopes so they are reasonably free of weeds. Use recommended, legally approvedherbicides to control weed growth in open areas whenever possible, and if necessary. Avoidsoil cultivation to maintain pre-emergent herbicide effectiveness and root health.

Pre-emerge: This type of control should be used only if a known weed problem warrants itsuse.

Post-emerge: Control broadleaf weeds with selective herbicides.

C. Fertilization:

Apply fertilizer as warranted. The number of applications will be dependent on the type of nitrogen used and the type of plant material.

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D. Fungicide: Apply recommended, legally approved fungicides to control disease- causing damage to slope area when necessary.

E. Insecticide: Apply recommended, legally approved pesticides to control insects causing damage to slope area when necessary.

V. Tree Care: A . Pruning:

Height limitation for tree pruning covered in the specification is 12 feet. On trees over 12 feet in height only low - hanging branches that present a hazard to pedestrian or vehicular traffic will be raised.Trees under 12 feet are scheduled to be pruned in the winter months except for safety - related pruning, which will be done only if necessary. Evergreen trees under 12 feet shall be thinned out and shaped only if necessary to minimize wind and storm damage.

B . Staking: Stakes are to be inspected and adjusted or removed as necessary. When trees attain a trunk caliper of4” or substantial root development sta bility, removal will be discussed with client.

VI. Mulched Areas/ Granite Areas : Mulched or decomposed granite areas will be inspected on our days of service. Weeds and grasses shall becontrolled with recommended, legally approved herbicides only if necessary. In those areas with excessivemulch build up alternatives will be discussed with the client.

VII. Irrigation System: Watering shall be scheduled with automatic controlle rs to supply quantities and frequencies consistent withseasonal requirements of the plant materials in the landscape. In some circumstances, water scheduling may be limited by local watering restrictions. Where practical, watering shall be done at night or early morning if the system is automatic, unless notified otherwise by the owner. Any damages to the irrigation system caused by the Contractor while carrying out maintenance operationsshall be repaired without charge. Where practical, repairs shal l be made within one watering period. Faulty equipment, vandalism or accidental damage caused by others shall be reported promptly to owner. Cost of labor and material to perform repair is an extra and shall be paid for by the owner upon authorization. Whenever possible, owner’s representative shall be instructed on how to turn off system in case ofemergency. Our office is to be advised at once or by next business day. If the Contractor is required to make emergency repairs or adjustments other than re gularly scheduled visits, a minimum charge will apply.

VIII. Debris Cleanup: All landscape areas shall be inspected on days of service and excess debris removed. Gardening debris, generated from our work, shall be removed from paved areas on days of service. Th is excludes leaf fallpickup from parking areas, sidewalks, pools, etc.

IX. Bio- Hazards: Contractor shall not be responsible for policing, picking up, removing or disposing of certain materials that may be bio -hazards on the Owner/Client's property. This includes, but is not limited to, items such as hypodermic needles (Sharps/needles) will not be handled by the Contractor’s employees at any time),condoms, feminine hygiene products, clothing or materials used in the process of cleaning up bodily fluids. Contractor shall only be obligated to report/communicate any observations of potential bio -hazards to the Owner/Client for their appropriate removal by others, unless previously arranged by the Owner/Client and Contractor.

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GENERAL TERMS AND CONDITIONS

I. Contractor’s Responsibility: The contractor shall recognize and perform in accordance with written terms, writtenspecifications and drawings only, contained or referred to herein. Contractor reserves the right to renegotiate the contract when price or scope of work is affected by changes to any local, state, or federal law, regulation or ordinance that goes into effect after theAgreement is signed.

A. Workforce:

Contractor shall designate a qualified representative with experience in the services beingprovided. The workforce is to be personably presentable at all times. All employees shall be competent and qualified, and shall be U.S. citizens or legal residents, and authorized to workin the United States.

B. Materials:

All materials shall conform to bid specifications. Contractor will meet all Agricultural licensing and reporting requirements.

C. Licenses and Permits:

Contractor to maintain a Landscape Contractor’s license, if so required by State or local law,and will comply with all other license and permit requirements of the City, State and Federal Governments, as well as all other requirements of law.

D. Taxes:

Contractor agrees to pay taxes applicable to its work under this contract, including sales taxon material supplied where applicable.

E. Insurance:

Contractor agrees to provide General Liability Insurance, Automotive Liability Insurance,Worker’s Compensation Insurance, and any other insurance required by law or owner/client.

F. Liability:

It is understood and agreed that the Contractor is not liable for any damage of any kind whatsoever that is not caused by the negligence of the Contractor, it’s agents or employees.

G. Subcontracts:

Contractor reserves the right to hire qualified subcontractors to perform specialized functionsor work requiring specialized equipment.

H. Invoicing:

Contractor will submit monthly service invoices for the amount set forth under the prices andterms shown on page 1 of this Agreement. Any services rendered, that are in addition to or beyond the scope of work required by this Agreement shall be separately billed.

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II. Owner’s/Client’s Responsibility:

A. Utilities:

All utilities shall be provided by the Owner/Client.

B. Access to Jobsite:

Owner/Client shall furnish access to all parts of jobsite where Contractor is to perform workas required by this Agreement or other functions related thereto, during normal business hoursand other reasonable periods of time, and in the case of after hours emergencies.

C. Payment:

Owner/Client shall review invoices submitted by Contractor and payment shall be due fifteen(15) days following the date of the invoice and delinquent if not paid by that date. Contractormay cancel Agreement by giving seven (7) days written notice for nonpayment, after thepayment is delinquent.

D. Notice of Defect:

Owner/Client shall give Contractor at least seven (7) days written notice to correct anyproblem or defect discovered in the performance of the work required under this Agreement. Contractor will not accept any deduction or offset unless such written notice is given.

III. Other Terms: The Owner/Client and the Contractor respectively, bind themselves, their partners, successors,assignees and legal representative to the other party with respect to all covenants of thisAgreement. Neither the Owner/Client nor the Contractor shall assign or transfer any interest in this Agreement without the written consent of the other.

IV. Termination: This agreement may be terminated by either party with or without cause, upon thirty (30) dayswritten notice to the other party. This agreement may be terminated by the Contractor for non-payment by Owner/Client, upon seven (7) days written notice as stated above. Either party shall be entitled to cure any deficiencies of performance or payment within seven (7) days of beingnotified of deficiency(s). If the Owner/Client makes payment in full within seven (7) days ofreceipt of the written notice, the grounds for termination shall be deemed cured. If Contractor corrects the deficiency identified in the written notice within seven (7) days of receipt of thenotice, or if the deficiency is of such a nature that it cannot reasonably be corrected within seven(7) days and the Contractor commences a good faith effort to correct the deficiency within seven(7) days of receipt of notice, the grounds for the termination shall be deemed cured. For the convenience of Owner/Client only, the monthly charge under this contract is an average ofthe total charge for all work to be performed under the contract divided by the number of calendarmonths included in the payment period of the contract. In the event this contract is terminated early by either party, the Contractor shall be entitled to recover his unrecovered costs incurredthrough the date of termination, including a reasonable amount of overhead and profit, and anyamount in excess of the monthly charges paid by the Client through the date of termination. This is because substantial portions of the work for the year, may be performed in the early months ofeach year of the contract including potentially significant mobilization costs in start-up and the cost of the work will not be fully recovered by the Contractor until all monthly payments under thecontract have been received.

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