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SIERRA DELTA CORPORA 770A1 <br />935 Riverside Avenue, Suite 21 <br />Paso Robles, California 93446 <br />Phone: 805-239-9293 <br />Fax: 805-239-9309 <br />Email: sien-adeltard)sbeglobatnet <br />5070 N Sixth Street, Suite 152 <br />Fresno, California 93710 <br />Phone: 559-229-1451 <br />Fax: 559-229-1452 <br />Email: sierradelta(dsbcejobal.nct <br /> <br />Robb Eidemiller <br />President and CEO <br />December 22, 2008 <br />Ms. Sally Warner <br />Excel National Bank <br />9701 Wilshire Boulevard <br />Beverly Hills, California 90212 <br />Subject: Phase II baseline sampling conducted at Waterloo Gas & Liquor located at <br />5611 East Waterloo Road, Stockton, California 95215, APN: 087-100-52 <br />(Subject Property). <br />Dear Ms. Warner, <br />Per the requirements for gas station loans as outlined in Appendix 5 of the Small <br />Business Administration's (SBA's) SOP 50 10 (5), Sierra Delta Corporation (SDC) <br />conducted Phase II sampling of the Subject Property on November 20, 2008. Two (2) <br />borings were advanced to twenty-five (25) feet, one to the northeast and one to the <br />southwest of the underground storage tanks. Two (2) additional borings were advanced to <br />five (5) feet, both south of the dispenser islands. The reader is referred to Appendix A, <br />Borehole Location Map, to review the approximate location of the boreholes on the <br />Subject Property. A Geoprobe® direct push drill rig was utilized to bore through the <br />hardscape to the underlying stratum. No groundwater was encountered within the <br />twenty-five feet borings and therefore was not sampled. Soil samples were collected at <br />twenty (20) and twenty-five (25) feet below surface in the borings to the northeast and <br />southwest of the UST's. Soil samples were collected at five (5) feet below surface for the <br />two borings south of the fuel islands. Samples were submitted to a California State <br />certified laboratory and analyzed for Total Petroleum Hydrocarbons — Gasoline (TPH-g), <br />Total Petroleum Hydrocarbons — Diesel (TPH-d), Methyl-tert-butyl ether (MTBE), along <br />with Benzene, Toluene, Ethylbenzene, and Xylenes (BTEX). Results of the laboratory <br />analysis are summarized in Table 1 below. Laboratory results are attached herein <br />Appendix B. <br />EXCE.393 - 5611 East Waterloo Road Page 1