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BEVERIDGE & DIAMOND, P. C. <br /> Ms. Randi Val Morrison <br /> Senior Counsel <br /> April 13, 2001 <br /> Page 2 <br /> ► Properly maintain and repair the leased premised and all improvements <br /> thereon at CSK Auto's expense; and <br /> ► Comply with all laws, ordinances, orders, rules, regulations, and <br /> requirements of all governmental authorities having jurisdiction over the <br /> leased premises. <br /> Sublease §§ 5 and 13; Master Lease Sixth and Seventeenth Articles. <br /> The Schwab Trust hereby requests that CSK Auto comply with these obligations by <br /> investigating and remediating any contamination present at the Tracy Property and taking <br /> adequate measures to prevent any future recurrence. In our judgement and in that of the local <br /> authority, the San Joaquin County Public Health Services, Environmental Health Division,the <br /> investigations performed to date have been insufficient to delineate the extent and type of any <br /> contamination; thus additional work is required. Further, the Schwab Trust requires that CSK <br /> Auto remediate the property to the fullest extent. Residual contamination, even if acceptable to <br /> San Joaquin County or another agency with jurisdiction over the Tracy Property, will not satisfy <br /> the Schwab Trust, nor will it comply with the terms of the leases. <br /> We understand that CSK Auto has been aware of this issue for over a year, and we would <br /> like to see it resolved as quickly as possible. We request that CSK Auto begin working with San <br /> Joaquin County or another appropriate authority to develop and implement a workplan for further <br /> investigation right away. We further request that the remediation be completed successfully and <br /> confirmation sampling be conducted to demonstrate such success with 90 days from the date of <br /> this letter. By copy of this letter to PACCAR Inc./Grand Auto, Inc., we are putting those parties <br /> on notice of this situation and the requirement that it be remediated quickly as well. <br /> The Schwab Trust values its good working relationship with CSK Auto, and would like <br /> this situation to be resolved so it does not blemish that relationship. Please do not hesitate to call <br /> me at(415) 262-4010 to discuss the situation. <br /> Very truly yours, <br /> Katherine B. Reilly <br />