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65o North La Cadena Drive, Colton California 9232.4 <br />July 1, 2005 <br />Robert Ferguson <br />16236 Wayfua Lane <br />Huntington Beach, CA 92649 <br />Re: Letter of Agreement for Professional Consulting Services <br />Dear Mr. Ferguson: <br />This letter shall be our Agreement regarding the professional consulting services <br />described below ("Services") to be provided by Robert Ferguson ("Consultant") as an independent <br />contractor to the City of Colton for the City's reimbursement for certain electric utility projects ("Project"). <br />The Services to be provided include, but are not limited to, the following: assistance with <br />negotiation and amendment to the Wholesale Distribution Access Tariff (WDAT); review and make <br />recommendations to SCE Franchise Agreement; and assist with planning and implementation of black start <br />capability for the Agua Mansa Power Plan. The Services to be provided pursuant to this Agreement are <br />more specifically described in Exhibit "A" which is attached hereto and incorporated by reference herein. <br />Consultant shall perform all Services under this Letter of Agreement in a skillM and <br />competent manner, consistent with the standards generally recognized as being employed by professionals <br />in the same discipline in the State of California, and consistent with all applicable laws. Consultant <br />represents he has all licenses, permits, qualifications and approvals of whatever nate a that are legally <br />required to perform the Services and that such licenses and approvals shall be maintained throughout the <br />term of this Agreement. Subject to the terms, covenants, conditions and limitations contained in Exhibit <br />"A" which is attached hereto and incorporated by reference herein, compensation for adequately <br />performing the above services shall be billed at a monthly rate of $3,500, inclusive of expenses. Unless <br />expressly agreed in writing in advance by the City, the cost to the City for the Services shall not exceed <br />$42,000 total. This agreement supersedes any prior agreements entered into between the City of Colton <br />and Mr. Robert Ferguson. <br />ORANC"PM8644.2 <br />