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SECTION I. <br /> INTRODUCTION <br /> Pinnacle Environmental, Inc. (PEI), was retained by Industrial Drive Receivership Estate <br /> (Client) to perform a Limited Phase II Environmental Site Assessment (Limited Phase II) of a <br /> property at 248 Industrial Avenue, Stockton, California 95206 (subject property, Site). The <br /> subject property consists of an approximately five-acre parcel of land occupied by an <br /> approximately 50,000 square-foot single-story industrial building and a 1,500-square-foot <br /> single-story office structure. The Site is located on the south side of Industrial Drive <br /> approximately 500 feet east of McKinley Avenue, within an industrial area. <br /> This Limited Phase II was performed in order to evaluate recognized environmental <br /> conditions (RECs) identified in the following reports: <br /> ♦ September 2010 — Limited Phase II, conducted by PTS. PTS drilled 5 shallow borings and <br /> collected one soil sample from each boring. The soil samples were analyzed for halogenated volatile <br /> organic compounds (HVOCs), total recoverable petroleum hydrocarbons (TRPH), and total <br /> petroleum hydrocarbons as diesel (TPHd). PTS reported impacts to the soil with TRPH as has as <br /> 1,100 ppm which did not exceed regulatory limits. <br /> ♦ July 2010 — Phase I ESA prepared by PEI. RECs are described in Section III.E (herein). A <br /> subsurface investigation was recommended. <br /> ♦ May 2008—Transaction Screen Assessment(TSA),prepared by Lush Geosciences Inc. (LGI). <br /> ♦ 1997 — A Phase II investigation cited in the LGI report (2008) included 3 soil borings with soil <br /> sampling to 10 feet below ground surface(bgs). Total recoverable petroleum hydrocarbons (TRPH) <br /> were detected up to 1,900 parts per million(ppm). <br /> PEI visited the site on March 26 and June 23, 2010, to visually assess the site as part of the July 2010 <br /> Phase I ESA. PEI visited the site again on January 10, 2012, to review the work that had been <br /> completed by the receiver of the property since PEI last site visit in June 2010. PEI noted that the <br /> construction debris in the interior of the building and on the exterior of the property had been removed <br /> from the property. In addition, previously noted hazardous materials had been removed from the <br /> property in coordination with the San Joaquin County Department of Environmental Health. <br /> PEI prepared the Limited Phase II scope of work based on its 2010 Phase I ESA, the PEI 2012 re-visit, <br /> and a review of the readily available on-line Geotracker records for the western adjoining property. <br /> Limited Phase II Environmental Site Assessment Pinnacle Environmental,Inc. <br /> 248 Industrial Avenue,Stockton,CA 95206 Page 2 <br />