SITE INFORMATION AND CORRESPONDENCE

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. r j In the event any ongoing monitoring of the site will be required by governmental authorities with jurisdiction over the remediation provided that such monitoring will not interfere with Lessor's plans or use of the site, Lessor and Lessee shall enter into a License Agreement, without monetary consideration, provided such monitoring will not interfere with Lessor's plan or use of the site, to conduct such monitoring. The remediation of the site shall be deemed completed when Lessee remediates the referenced contamination to exsiting acceptable levels set by all appropriate authorities. Lessee shall provide Lessor with proper sign-offs and clearances from all federal, state and local governmental agencies of political subdivisions with jurisdiction, providing that the condition of the Real Property is satisfactory if said sign-offs and clearances are available and provided by said agencies. Otherwise, Lessee shall remediate the Real Property to such a condition so that it can be returned to Lessor in the condition existing prior to the introduction of any such Hazardous Material to the Real Property. The following statements of fact are drawn directly from these two lease paragraphs and are not mere conjecture. • Para.2 of the lease clearly spells out complete remediation as being referenced by proper sign-offs and clearances, from all appropriate federal, state and local governmental agencies. This condition you have failed to meet with only a SOILS clearance. • The lease further specifies that in the absence of governmental authorities having jurisdiction over the mitigation process, the Real Property is to be returned to original condition. This clearly is not applicable as the SJCPHS and RWQCB are overseeing the remediation...the intent of which is to ensure the property is fully returned to original condition. Original condition cannot be met until all required sign-offs have been obtained and all monitoring wells removed! I must remind you that this parcel was undeveloped, raw land prior to Unocal's project. • Para.I does address the provision of both parties mutually entering into a License Agreement for monitoring purposes, should this be required by the jurisdictional governmental authorities. The language of the paragraph is more concerned with the non-interference of such monitoring, if required, with the Lessor's plan or use of the site, than being specific as to the mechanics of entering into a License Agreement. We do regard the current position of MW3A as a definite impediment to our site development plans! There is no mention in either of these lease paragraphs specifying SOILS closure as being the sole determinant for termination of the mitigation process, nor indeed of ongoing lease obligations. This is an arbitrary and I must say, somewhat self-serving conclusion on your behalf and is completely without merit within the tenets of the lease!