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Based on this information, including the impending final case closure status for the former Spreckels Sugar site, the subject property's historical use by the Spreckels Sugar Company is not expected to represent a significant environmental concern. Nevertheless, it should be noted that low levels of metals, toluene, 1,2,4-tri methyl benzene, total xylenes and total cyanide in the soil and/or groundwater may remain present in the northern-central portion (former Site B area) of the subject property. De Minimis Environmental Conditions include environmental concerns identified by AEI that warrant discussion but do not qualify as RECs, as defined by the ASTM Standard Practice E1528-05. AEI's assessment has revealed the following de minimis environmental conditions associated with the subject property or nearby properties: • No on-site de minimis environmental conditions were identified during the course of this assessment. Business Environmental Risks (BERs include risks which can have a material environmental or environmentally-driven impact on the business associated with the current or planned use of the subject property, not necessarily limited to those environmental issues required to be investigated in the standard ASTM scope. BERs may affect the liabilities and financial obligations of the client, the health & safety of site occupants, and the value and marketability of the subject property. AEI's investigation has revealed the following BERs associated with the subject property or nearby properties: • During the site inspection, damaged drywall and resilient flooring were observed within the subject property warehouse. Although the cutoff date of 1981 is generally accepted for estimating the likelihood that a building contains ACMs, building materials manufactured after 1981, while not expected to, may still contain asbestos. In the event that building renovation or demolition activities are planned, an asbestos survey focusing on the damaged materials and adhering to AHERA sampling protocol should be performed prior to demolition or renovation activities that may disturb ACMs. • During the site inspection, a pool of liquid was observed on the floor within one of the subject property offices. The liquid appeared to be water and may have been the result of water intrusion at the subject property. No obvious visual signs of mold growth were observed in the vicinity of the pool. However, repairs to prevent water intrusion and damage in the impacted area should be performed in order to minimize the potential for future mold growth. • No hazardous materials or petroleum products were observed on-site during AEI's site inspection. However, signage within the subject property building provided evidence of former hazardous materials and/or petroleum product storage locations. Based on the lack of hazardous materials and/or petroleum products observed onsite during the site inspection, in conjunction with the trade secret nature of the materials/process used onsite (see Section 4.1.2), the types and quantities of materials formerly used at the subject property are unknown, representing a BER. CONCLUSIONS,,OPINIONS AND RECOMMENDATIONS We have performed a Phase I Environmental Site Assessment for the property located at 600 Spreckels Avenue in the City of Manteca, San Joaquin County, California, in general conformance with the scope and limitations of ASTM Standard Practice E1527-05 and the Project No. 297376 AE1 June 22, 2011 Page v Consultants