SITE INFORMATION AND CORRESPONDENCE

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KLEINFELDER File No. 20-3978-01.W10 June 12, 1997 1.0 INTRODUCTION The former Spreckels Sugar Plant No. 2 is in escrow. The property is being sold by Spreckels Development Company to Atherton Kirk Development. For details regarding the proposed property use, please refer to Section 2.3 of this letter and the attached map. As a consequence of the proposed property transaction, Kleinfelder conducted a Phase I Environmental Site Assessment at the former Spreckels Sugar Plant No. 2 in Manteca, California. Mr. Mike Atherton of Atherton Kirk Development, retained Kleinfelder to conduct the assessment in accordance with our contract dated August 27, 1996. The results of the assessment were detailed in Kleinfelder's "Phase I Environmental Site Assessment, Former Spreckels Sugar Plant, 18800 South Spreckels Road, Manteca, California" report dated October 18, 1996 (Kleinfelder File No. 20-3978-O1.P01). Many potential environmental concerns were identified in the Phase I report. As a consequence of said conclusions and recommendations, a Phase II Environmental Site Assessment was conducted throughout the site. The Phase II Environmental Site Assessment was detailed in a number of individual reports. References to said reports, and a summary of their findings are detailed in this letter. In addition to the Phase I and R Environmental Site Assessments performed for Atherton Kirk Development, groundwater monitoring and pond closure investigation services were conducted for Spreckels Development Company. Those reports are also referenced and summarized in this letter. 2.0 SITE SETTING 2.1 Site Location The Spreckels site is located in a portion of the Northern 1/2 of the Northeast 1/4 of Section 4, a portion of the Eastern 1/2 of the Southeast 1/4 of Section 4 and the Western 1/2 of Section 3 of Township 2 South Range 7 East of the Mount Diablo Baseline and Meridian. According to the 1987 photorevised U.S. Geological Survey "Manteca, California, East" 7.5-Minute Topographic Quadrangle Map, the property has an elevation of approximately 40 feet above mean sea level. However, the topography of the site varies extensively. According to a December 1996 topographic survey of the site by RLC Associates of Manteca (the basis of our attached boring location maps), the site has an elevation ranging from 38 to 68 feet above mean sea level. The overall former Spreckels Sugar Plant No. 2 property includes approximately 362 acres of property which were recently annexed to the City of Manteca. 20-3978-O1.W10/2017L155 Page 2of44 Copyright 1997,Kleinfelder, Inc.