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T Attachment C.1 AGREEMENT FOR MUTUAL RELEASE AND COVENANT NOT TO SUE BETWEEN REGIONAL WATER QUALITY CONTROL BOARD, CENTRAL VALLEY REGION, AND MICHAEL DOUGLAS Former Victor Fine Foods Facility 18846 North Highway 99, Lodi, California I. INTRODUCTION 1.1 Parties. This Agreement for Mutual Release and Covenant Not to Sue ("Agreement") is entered into as of this , 1998, by and between the State of California,Regional Water Quality Control Board, Central Valley Region(`Board") and Michael Douglas ("Douglas") (collectively the "Parties"). 1.2 Site. the Agreement applies to the site of the former Victor Fine Foods Facility located at 18846 North Highway 99, Lodi, California("Property's and more specifically described in the records of the San Joaquin County Assessor as Assessors Parcel Nos. 017-090-35, 017-090-46, 017-090-51 and 017-090-52. Douglas proposes to acquire the Property for purposes of redevelopment, other than for food processing. 1.3 Jurisdiction. The Board, in Resolution No. (adopted ), resolved that the Parties should enter into an agreement. The Resolution is attached as Attachment 1. The purpose of this Agreement is to resolve, subject to reservations of rights and covenants,the potential liability of Douglas for the Known Conditions (herein defined) at the Property which would otherwise result from Douglas becoming the owner of the Property. The Board enters into this Agreement pursuant to California Water Code Sections 13300, et seq. The resolution of this potential liability, in exchange for provision by Douglas of a benefit, is in the public interest. Douglas will cleanup and abate certain conditions at the Property that may not otherwise be abated without expenditure of public funds. This Agreement shall be subject to Douglas' acquisition of title to the Property. If Douglas fails to acquire title to the Property,the Agreement shall be null and void and the Board reserves all rights it may otherwise have. 1.4 Regulatory Actions. Due to the existing condition of pollution the Board issued the following orders: Cleanup and Abatement Order No. 87-133, Cease and Desist Order No, 88-191, Cleanup and Abatement Order No. 92-703 and Waste Discharge Requirements Order No. 90-047. (the "Orders"). Responsible parties, including Golden Gate Fresh Foods and Goehring Meat,Inc., have failed to fully comply with these Board orders. This Agreement does not apply to those or any other responsible parties.