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1.0 EXECUTIVE SUMMARY SECOR International Incorporated (SECOR) performed a Phase I Environmental Site Assessment (ESA) of Patterson Pass Business Park Building #6, located north of W. Commerce Way in Tracy, California (subject property). The field inspection, completed on January 19, 2005, consisted of a walk-through inspection of the interior and exterior areas of the subject property building. A review of pertinent readily available records of local, state, and federal agencies, and interviews with persons knowledgeable about the current site activities were also conducted. SECOR also reviewed a previous Phase I ESA report for two larger parcels, including the subject property, prepared in December 1993 by SWL Environmental Services (SWL). Data regarding the historical use of the subject property and adjacent properties was obtained from the previous ESA report. ProLogis, owner of the subject property, requested that the Phase I ESA be completed in accordance with ASTM Standard Practice E1527-00 Standard Practice for ESAs: Phase I ESA Process and the scope of work contained in the January 14, 2005 Agreement for Environmental Consulting Services between SECOR and ProLogis. SECOR was retained by ProLogis to evaluate the presence of recognized environmental conditions as defined in ASTM, and to evaluate other aspects of the environmental condition of the property as specified in the Agreement. At the time of SECOR's site reconnaissance, the subject property was developed with a warehouse/distribution building totaling 92,400 square feet, occupied by two tenants, Bunzl (76,650 square feet), and EnXco (15,750 square feet). However, SECOR was informed by ProLogis representatives that EnXco has since vacated and Bunzl acquired the entire rentable space. The building was surrounded by two concrete truck aprons, with asphalt-paved parking and driveway areas and landscaped vegetation around the perimeter and near office area entrances. No soil staining, discoloration, or evidence of improper disposal was observed on the subject property. Bunzl was a distributor of products including outsourced food packaging, disposable supplies and cleaning and safety products for supermarkets, redistributors, caterers, food processors, hotels, contract cleaners and other users. SECOR observed five cases of low-grade detergent stored in the warehouse area at the time of inspection. According to Kamran Shokraii, Warehouse/Transportation Manager for Bunzi, there have been no spills or releases on the subject property. The concrete flooring in the warehouse area was in good condition with no cracks or chips. Electric powered forklifts and/stock pickers were used in the warehouse area. SECOR observed nine stock pickers, and three stand-up forklifts in the warehouse area at the time of inspection. EnXco maintained windmill turbine engines. EnXco utilized machine oils, lube oil, hydraulic oil, parts cleaners, solvents and primer paint. SECOR observed an air compressor outside the northwestern corner of the subject property building. EnXco used this air compressor to supply air to impact guns and other tools used in the machine shop. SECOR observed 160 pounds of SHC 460 lube oil, 20 gallons of Mobile DTE 11 hydraulic oil, 15 gallons of ISO 32 hydraulic oil, twenty-four 16-ounce cans of Parts Cleaner, twelve 16-ounce cans of Primer Paint, two 55- gallon drums of ISO-320 Ultra Gear lube, and one 55-gallon drum of QSOL 300 cleaning solvent stored on the property at the time of inspection. Waste oil was collected in 55-gallon drums and disposed of by Safety-Kleen, who also serviced the parts washers at the facility. Final ESA Report-30096.009-Tracy CA.doc 1 SECOR International Incorporated April 14,2005