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HomeMy WebLinkAbout20088 Ark-Les NBP Package for PC 20180305 20088-16-092/Ark-Les Laboratories (Approved for Public Comment 20180305) 1 Property Owner: LRG Investments, LLC Recorded in Book ____, Page ____ Associated plat recorded in Plat Book ____, Page ____ NOTICE OF BROWNFIELDS PROPERTY Site Name: Ark-Les Laboratories Brownfields Project Number: 20088-16-092 This documentary component of a Notice of Brownfields Property (“Notice”), as well as the plat component, have been filed this _____ day of __________________, 201__ by ______________________________ (“Prospective Developer”). This Notice concerns contaminated property. A copy of this Notice certified by the North Carolina Department of Environmental Quality (“DEQ”) is required to be filed in the Register of Deeds’ Office in the county or counties in which the land is located, pursuant to North Carolina General Statutes (“NCGS”), § 130A-310.35(b). This Notice is required by NCGS § 130A-310.35(a), in order to reduce or eliminate the danger to public health or the environment posed by environmental contamination at a property (“Brownfields Property”) being addressed under the Brownfields Property Reuse Act of 1997, NCGS § 130A, Article 9, Part 5 (“Act”). Pursuant to NCGS § 130A-310.35(b), the Prospective Developer must file a certified copy of this Notice within 15 days of Prospective Developer’s receipt of DEQ’s approval of the Notice or Prospective Developer’s entry into the Brownfields Agreement required by the Act, whichever is later. The copy of the Notice certified by DEQ must be recorded in the grantor index under the names of the owners of the land and, if Prospective Developer is not the owner, also under the Prospective Developer’s name. The Brownfields Property is located at 3400 Yonkers Road, Raleigh, Wake County (the “Brownfields Property”). The Brownfields Property is approximately 5.68 acres, is referred to by parcel identification number 1724252035 in the Wake County property records and contains one 68,109 square ft. light industrial building. Redevelopment plans for the Brownfields Property include industrial, office, warehousing, retail, parking and other commercial uses only with DEQ’s prior written approval. The Brownfields Property was developed in 1965 with the above referenced building and was initially occupied by a light industrial manufacturer, Stackpole 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 2 Components (later called Ark-Les Electronic Laboratories). Stackpole was a manufacturer of electronic resistors and switches. The Brownfields Agreement between Prospective Developer and DEQ is attached hereto as Exhibit A. It sets forth the use that may be made of the Brownfields Property and the measures to be taken to protect public health and the environment, and is required by NCGS § 130A-310.32. The Brownfields Agreement’s Exhibit 2 consists of one or more data tables reflecting the concentrations of and other information regarding the Brownfields Property’s regulated substances and contaminants. Attached as Exhibit B to this Notice is a reduction, to 8 1/2" x 11", of the survey plat component of this Notice. This plat shows areas designated by DEQ, has been prepared and certified by a professional land surveyor, meets the requirements of NCGS § 47-30, and complies with NCGS § 130A-310.35(a)’s requirement that the Notice identify: (1) The location and dimensions of the areas of potential environmental concern with respect to permanently surveyed benchmarks. (2) The type, location and quantity of regulated substances and contaminants known to exist on the Brownfields Property. Attached hereto as Exhibit C is a legal description of the Brownfields Property that would be sufficient as a description of the property in an instrument of conveyance. LAND USE RESTRICTIONS NCGS § 130A-310.35(a) also requires that the Notice identify any restrictions on the current and future use of the Brownfields Property that are necessary or useful to maintain the level of protection appropriate for the designated current or future use of the Brownfields Property and that are designated in the Brownfields Agreement. The restrictions shall remain in force in perpetuity unless canceled by the Secretary of DEQ (or its successor in function), or his/her designee, after the hazards have been eliminated, pursuant to NCGS § 130A-310.35(e). All references to DEQ shall be understood to include any successor in function. The restrictions are hereby imposed on the Brownfields Property, and are as follows: 1. No use may be made of the Brownfields Property other than for office, warehousing, retail, parking, and other commercial uses only with DEQ’s prior written approval. For purposes of this restriction, the following definitions apply: a. Industrial defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. b. Office defined as the provision of business or professional services. c. Parking defined as the temporary accommodation of motor vehicles in an area designed for same. d. Warehousing defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 3 the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. e. Commercial defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. f. Retail defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. 2. The Brownfields Property may not be used for child care, adult care centers or schools without the prior written approval of DEQ. 3. Groundwater at the Brownfields Property may not be used for any purpose without the prior written approval of DEQ. 4. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified as in Land Use Restriction No. 1abovewhile fully protecting public health and the environment, except: a. in connection with landscape planting or maintenance or repair of existing improvements on the Brownfields Property, only to depths not exceeding 24”; b. mowing and pruning of above-ground vegetation; c. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken and; d. in connection to work conducted in accordance with a DEQ-approved EMP as outlined as in Land Use Restriction No. 7 below. e. final grade sampling of any area of the Brownfields Property, if DEQ deems it necessary in writing, that is not covered by building foundations, sidewalks, or asphaltic or concrete parking areas and driveways. 5. No dry cleaning operations using chlorinated solvents may be conducted on the property. 6. No enclosed building may be constructed on the Brownfields Property until DEQ determines in writing that: a. the building is or would be protective of the building’s users, public health and the environment from risk of vapor intrusion based on site assessment data or a site-specific risk assessment approved in writing by DEQ; or 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 4 b. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or c. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. d. any vapor barrier and/or mitigation systems installed pursuant to Land Use Restriction No. 6.c. above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. 7. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“EMP”) approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: a. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; b. issues related to potential sources of contamination referenced in Exhibit 2 of the attached Exhibit A; c. contingency plans for addressing newly discovered potential sources of environmental contamination (e.g., tanks, drums, septic drain fields, oil-water separators, soil contamination); and d. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. 8. By January 31 of each year after the completion of this Agreement, for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: a. actions taken on the Brownfields Property in accordance with the plan required by Land Use Restriction No. 7 above; 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 5 b. soil grading and cut and fill actions; c. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; d. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and e. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). 9. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of the attached Exhibit A and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except a. in de minimis amounts for cleaning and other routine housekeeping and maintenance activities; b. as fuel or other fluids customarily used in vehicles, landscaping equipment, and emergency generators; c. as constituents of products and materials customarily used and stored in residential, office, retail, and hotel environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable laws; and d. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged), and later removed from the Brownfields Property in the original packaging or containers. 10. The owner of any portion of the Brownfields Property where any existing, or subsequently installed, DEQ-approved monitoring well is damaged shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance or unless such damage is caused by DEQ personnel or consultants, agents, and representatives directly contracted by DEQ. 11. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. 12. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 6 Notice of Brownfields Property recorded in the Wake County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. The owner conveying an interest may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. 13. During January of each year after the year in which this Notice is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Wake County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Wake County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the following: a. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner [or board, association or approved entity] submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; and b. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Brownfields Property during the previous calendar year; c. LURU’s submitted for any portion of the Brownfields Property that contains rental units shall include a list of tenants and their addresses. d. A LURU submitted for rental units shall include the rent roll and enough of each lease entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in paragraphs 22 and 23 of the attached Exhibit A provided that if standard form leases are used in every instance, a copy of such standard form lease may be sent in lieu of copies of actual leases. For purposes of the land use restrictions set forth above, the DEQ point of contact shall be the DEQ official referenced in paragraph 35.a. of attached Exhibit A, at the address stated therein. ENFORCEMENT The above land use restrictions shall be enforceable without regard to lack of privity of estate or contract, lack of benefit to particular land, or lack of any property interest in particular land. The land use restrictions shall be enforced by any owner of the Brownfields Property. The land use restrictions may also be enforced by DEQ through the remedies provided in NCGS § 130A, Article 1, Part 2 or by means of a civil action; by any unit of local government having jurisdiction over any part of the Brownfields Property; and by any person eligible for liability protection under the Brownfields Property Reuse Act who will lose liability protection if the restrictions are violated. Any attempt to cancel any or all of this Notice without the approval of the Secretary of DEQ (or its 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 7 successor in function), or his/her delegate, shall be subject to enforcement by DEQ to the full extent of the law. Failure by any party required or authorized to enforce any of the above restrictions shall in no event be deemed a waiver of the right to do so thereafter as to the same violation or as to one occurring prior or subsequent thereto. FUTURE SALES, LEASES, CONVEYANCES AND TRANSFERS When any portion of the Brownfields Property is sold, leased, conveyed or transferred, pursuant to NCGS § 130A-310.35(d) the deed or other instrument of transfer shall contain in the description section, in no smaller type than that used in the body of the deed or instrument, a statement that the Brownfields Property has been classified and, if appropriate, cleaned up as a brownfields property under the Brownfields Property Reuse Act. IN WITNESS WHEREOF, Prospective Developer has caused this instrument to be duly executed this _____ day of _______________, 201__. LRG Investments, LLC By: __________________________________________ Name typed or printed: Charles Faulkner Title typed or printed: President NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ Notary’s printed or typed name, Notary Public (Official Seal) My commission expires: _____________________ 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 8 ************************************ ACKNOWLEDGMENT OF PROPERTY OWNER As the current owner, or representative of said owner, of at least part of the Brownfields Property, I hereby acknowledge recordation of this Notice of Brownfields Property and the Land Use Restrictions contained herein. [Name of Owner] By: ______________________________ _______________ ________________________ Name typed or printed: ___________________________ Date NORTH CAROLINA _______________ COUNTY I certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated: ________________________________. Date: ___________________ ___________________________________ Official Signature of Notary ___________________________________ Notary’s printed or typed name, Notary Public (Official Seal) My commission expires: _____________________ 20088-16-092/Ark-Les Laboratories (20180305 for Public Comment) 9 ************************************ APPROVAL AND CERTIFICATION OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY The foregoing Notice of Brownfields Property is hereby approved and certified. North Carolina Department of Environmental Quality By: _________________________________________ ________________________ Michael E. Scott Date Director, Division of Waste Management 1 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 EXHIBIT A NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY IN THE MATTER OF: LRG Investment, LLC UNDER THE AUTHORITY OF THE ) BROWNFIELDS AGREEMENT re: BROWNFIELDS PROPERTY REUSE ACT ) Ark-Les Laboratories OF 1997, NCGS § 130A-310.30, et seq. ) 3400 Yonkers Road Brownfields Project # 20088-16-092 ) Raleigh, Wake County I. INTRODUCTION This Brownfields Agreement (“Agreement”) is entered into by the North Carolina Department of Environmental Quality (“DEQ”) and LRG Investment, LLC (collectively the “Parties”) pursuant to the Brownfields Property Reuse Act of 1997, NCGS § 130A-310.30, et seq. (the “Act”) for property located at 3400 Yonkers Road, Raleigh, Wake County (the “Brownfields Property”). A map showing the location of the Brownfields Property that is the subject of this Agreement is attached hereto as Exhibit 1. LRG Investment is a North Carolina limited liability company. Its principal officer is Charles Faulkner and its principal place of business is located at 3400 Yonkers Rd, Suite 110, Raleigh, NC 27604. The Brownfields Property is approximately 5.68 acres and referred to by parcel identification number 1724252035 in the Wake County property records and contains one 68,109 square ft. light industrial building. Redevelopment plans for the Brownfields Property include industrial, office, warehousing, retail, parking, and commercial uses only with DEQ’s prior written approval. The Brownfields Property is surrounded by land in commercial and industrial use to the east, north and south, and recreational to the west of the property. 2 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 Groundwater, sub-slab soil gas and soil vapor are contaminated at the Brownfields Property due to historical activities. The Parties agree to undertake all actions required by the terms and conditions of this Agreement. The purpose of this Agreement is to settle and resolve, subject to reservations and limitations contained in Section VIII (Certification), Section IX (DEQ’s Covenant Not to Sue and Reservation of Rights) and Section X (Prospective Developer’s Covenant Not to Sue), the potential liability of LRG Investment, LLC for contaminants at the Brownfields Property. The Parties agree that LRG Investment, LLC’s entry into this Agreement, and the actions undertaken by LRG Investment, LLC in accordance with the Agreement, do not constitute an admission of any liability by LRG Investment, LLC for contaminants at the Brownfields Property. The resolution of this potential liability, in exchange for the benefit LRG Investment, LLC shall provide to DEQ, is in the public interest. II. DEFINITIONS Unless otherwise expressly provided herein, terms used in this Agreement which are defined in the Act or elsewhere in NCGS § 130A, Article 9 shall have the meaning assigned to them in those statutory provisions, including any amendments thereto. 1. “Brownfields Property” shall mean the property which is the subject of this Agreement, and which is depicted in Exhibit 1 to the Agreement. 2. “Prospective Developer” shall mean LRG Investment, LLC. III. STATEMENT OF FACTS 3. The Brownfields Property comprises one parcel totaling 5.68 acres. Prospective 3 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 Developer has committed itself to redevelopment for no uses other than industrial, office, retail, warehousing, parking and commercial uses only with DEQ’s prior written approval. 4. The Brownfields Property is bordered to the north by Yonkers Road and commercial/retail property; to the east by Yonkers Road and I-440; to the south by recreational fields owned by St. David’s School and commercial property; and to the west by St. David’s School recreational fields. An adjoining building and property occupied by a commercial wholesale florist (3510 Yonkers Road), that was once part of the Ark-Les facility and which was subsequently subdivided, is not part of the Brownfields Property. 5. Prospective Developer obtained or commissioned the following reports, referred to hereinafter as the “Environmental Reports,” regarding the Brownfields Property: Title Prepared by Date of Report Limited Phase II Assessment Results - Metals Sampling Former Ark-Les Laboratories The John R McAdams Company August 31, 2017 2nd Round Vapor Intrusion Indoor Air Testing Report – Former Ark-Les Laboratories The John R McAdams Company August 8, 2017 Report of Findings, Vapor Intrusion Evaluation – 3400 Yonkers Road, Raleigh, NC Highlands Environmental Solutions, Inc. January 10, 2017 Vapor Indoor Air Testing Report, Former Ark-Les Laboratories – 3400 Yonkers Road, Raleigh, NC The John R McAdams Company January 11, 2017 Groundwater Quality Assessment Report The EI Group, Inc. November 2016 Phase I Environmental Site Assessment The EI Group, Inc. December 30, 2014 Limited Phase II Environmental Site Assessment The EI Group, Inc. December 30, 2014 6. For purposes of this Agreement, DEQ relies on the following representations by 4 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 Prospective Developer as to use and ownership of the Brownfields Property: a. Prior to 1965 the Brownfields Property was undeveloped and/or used for agricultural purposes. b. The Brownfields Property was developed in 1965 with one building which was initially occupied by a light industrial manufacturer, Stackpole Components (later called Ark-Les Electronic Laboratories). This building was expanded several times in the 1970s to its current configuration, which has been the configuration of the building since the 1980s. Stackpole Components and/or Ark-Les Electronic Laboratories operated as a manufacturer of electronic resistors and switches on the Brownfields Property until roughly 2005. Floor drains were identified during Phase I activities, (The EI Group, Inc., completed a Phase I Environmental Site Assessment dated December 30, 2014, referred to herein as the “2014 Phase I”) in the warehouse, restrooms, and laboratory portions of the building, and were reported to be connected to the municipal sewer system. As reported in the 2014 Phase I, prior hazardous materials accumulation occurred in the building located on the adjoining property (3410 Yonkers Road) that is not part of this Brownfields Property. c. Ownership of the Brownfields Property was transferred from Stackpole Components (Ark-Les Laboratories) to Bruce Macneil, Trustee of Bras D’Or Nominee Realty Trust (the owner of Ark-Les Laboratories), who owned the property until 2005. Since 2005, the Brownfields Property has been owned by a succession of parties and a portion of the Brownfields Property has been leased to Hughes Plumbing Supply, Ltd or its successor in interest Hajoca Corporation. d. The prospective developer purchased the Brownfields Property on March 10, 5 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 2017. The building is currently occupied by Faulkner Haynes & Associates, a provider of commercial HVAC and IT Infrastructure Power and Cooling Solutions. The building located on the adjoining land is occupied by a M. Adler’s Son, Inc., a distributor of florist supplies, and is not part of the Brownfields Property. 7. Pertinent environmental information regarding the Brownfields Property and surrounding area includes the following: a. A Phase II environmental assessment was completed in two phases in March 2013 and February 2014. Results from the 2013 assessment (but not the 2014 assessment) identified trichloroethylene (TCE) in groundwater above NC 2L standards. No soil contamination was detected in previous site assessment activities. A soil gas and sub-slab soil gas investigation was conducted on December 1, 2016. Tricholoroethylene was detected in one sub-slab sample above non-residential screening criteria. Indoor air quality testing was performed at the Brownfields Property on January 11, 2017, and on August 8, 2017. In both cases, the testing found no exceedance of non-residential screening levels. b. The site is currently listed on the Inactive Hazardous Sites Branch inventory (ID NCN000402583) under Stackpole Components/Ark-Les Labs due to detections of TCE above groundwater NC 2L Standards. c. According to the Phase I ESA (The EI Group, Inc, 2014), several environmental conditions of concern were noted during a 1996 Phase I assessment in the building located on the adjoining property at 3410 Yonkers Road (now occupied by M. Alder’s Son, Inc.), including hazardous waste accumulation and a floor trench drain. That property is 6 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 also included in the Inactive Hazardous Sites Branch inventory (ID NCN000402583) under Stackpole Components/Ark-Les Labs. 8. The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred between October 24, 2016 and August 31, 2017. The tables set forth in Exhibit 2 to this Agreement present contaminants present at the Brownfields Property above applicable standards or screening levels for each media sampled. 9. For purposes of this Agreement DEQ relies on Prospective Developer’s representations that Prospective Developer's involvement with the Brownfields Property has been limited to obtaining or commissioning the Environmental Reports, preparing and submitting to DEQ a Brownfields Property Application (BPA) dated November 22, 2016, and purchasing the Brownfields Property on March 10, 2017. 10. Prospective Developer has provided DEQ with information, or sworn certifications regarding that information on which DEQ relies for purposes of this Agreement, sufficient to demonstrate that: a. Prospective Developer and any parent, subsidiary, or other affiliate has substantially complied with federal and state laws, regulations and rules for protection of the environment, and with the other agreements and requirements cited at NCGS § 130A- 310.32(a)(1); b. As a result of the implementation of this Agreement, the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment; 7 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 c. Prospective Developer's reuse of the Brownfields Property will produce a public benefit commensurate with the liability protection provided Prospective Developer hereunder; d. Prospective Developer has or can obtain the financial, managerial and technical means to fully implement this Agreement and assure the safe use of the Brownfields Property; and e. Prospective Developer has complied with all applicable procedural requirements. 11. The Parties agree that a $30,000 “Redevelopment Now” fee Prospective Developer has paid suffices as the $2,000 fee to seek a brownfields agreement required by NCGS § 130A- 310.39(a)(1), and, within the meaning of NCGS § 130A-310.39(a)(2), the full cost to DEQ and the North Carolina Department of Justice of all activities related to this Agreement, unless a change is sought to a Brownfields document after it is in effect, in which case there shall be an additional fee of at least $1,000. IV. BENEFIT TO COMMUNITY 12. The redevelopment of the Brownfields Property proposed herein would provide the following public benefits: a. an increase in the Brownfields Property’s productivity; b. the creation of jobs including construction jobs during redevelopment and full- time jobs after redevelopment is completed; c. an increase in tax revenue for affected jurisdictions; and 8 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 d. “smart growth” through use of land in an already developed area, which avoids development of land beyond the urban fringe (“greenfields”). V. WORK TO BE PERFORMED 13. In redeveloping the Brownfields Property, Prospective Developer shall make reasonable efforts to evaluate applying sustainability principles at the Brownfields Property, using the nine (9) areas incorporated into the U.S. Green Building Council Leadership in Energy and Environmental Design certification program (Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality, Locations & Linkages, Awareness & Education, Innovation in Design and Regional Priority), or a similar program. 14. Based on the information in the Environmental Reports, and subject to imposition of and compliance with the land use restrictions set forth below, and subject to Section IX of this Agreement (DEQ’s Covenant Not to Sue and Reservation of Rights), DEQ is not requiring Prospective Developer to perform any active remediation at the Brownfields Property other than remediation that may be required to a DEQ-approved Environmental Management Plan (EMP) required by this Section. 15. By way of the Notice of Brownfields Property referenced below in paragraph 20, Prospective Developer shall impose the following land use restrictions under the Act, running with the land, to make the Brownfields Property suitable for the uses specified in this Agreement while fully protecting public health and the environment instead of remediation to unrestricted use standards. All references to DEQ shall be understood to include any successor in function. 9 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 a. No use may be made of the Brownfields Property other than for office, warehousing, retail, parking, and commercial uses only with DEQ’s prior written approval. For purposes of this restriction, the following definitions apply: i. “Industrial” defined as the assembly, fabrication, processing, warehousing or distribution of goods or materials. ii. “Office” defined as the provision of business or professional services. iii. “Parking” defined as the temporary accommodation of motor vehicles in an area designed for same. iv. “Warehousing” defined as the use of a commercial building for storage of goods by manufacturers, importers, exporters, wholesalers, transport businesses among others, and also refers to the storage of goods and materials for a specific commercial establishment of a group of establishments in a particular type of industry or commercial activity. v. “Commercial” defined as an enterprise carried on for profit or nonprofit by the owner, lessee or licensee. vi. “Retail” defined as the sale of goods or services, products, or merchandise directly to the consumer or businesses and includes showrooms, personal service, and the sales of food and beverage products. b. The Brownfields Property may not be used for child care, adult care centers or schools without the prior written approval of DEQ. c. Groundwater at the Brownfields Property may not be used for any purpose without the prior written approval of DEQ. 10 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 d. No activity that disturbs soil on the Brownfields Property may occur unless and until DEQ states in writing, in advance of the proposed activity, that said activity may occur if carried out along with any measures DEQ deems necessary to ensure the Brownfields Property will be suitable for the uses specified in subparagraph 15.a above while fully protecting public health and the environment, except: i. in connection with landscape planting or maintenance or repair of existing improvements on the Brownfields Property, only to depths not exceeding 24”; ii. mowing and pruning of above-ground vegetation; iii. for repair of underground infrastructure, provided that DEQ shall be given written notice at least seven days in advance of a scheduled repair (if only by email) of any such repair, or in emergency circumstances no later than the next business day, and that any related assessment and remedial measures required by DEQ shall be taken and; iv. in connection to work conducted in accordance with a DEQ-approved EMP as outlined in subparagraph 15.g. v. final grade sampling of any area of the Brownfields Property, if DEQ deems it necessary in writing, that is not covered by building foundations, sidewalks, or asphaltic or concrete parking areas and driveways. e. No dry cleaning operations using chlorinated solvents may be conducted on the property. f. No enclosed building may be constructed on the Brownfields Property until DEQ determines in writing that: 11 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 i. the building is or would be protective of the building’s users, public health and the environment from risk of vapor intrusion based on site assessment data or a site- specific risk assessment approved in writing by DEQ; or ii. the building is or would be sufficiently distant from the Brownfields Property’s groundwater and/or soil contamination based on assessment data approved in writing by DEQ that the building’s users, public health and the environment will be protected from risk from vapor intrusion related to said contamination; or iii. vapor intrusion mitigation measures are installed and/or implemented to the satisfaction of a professional engineer licensed in North Carolina, as evidenced by said engineer’s professional seal on a report that includes photographs and a description of the installation and performance of said measures. Any design specification for vapor intrusion mitigation measures shall be approved in writing by DEQ in advance of installation and/or implementation of said measures. The design specifications shall include methodology(ies) for demonstrating performance of said measures. iv. any vapor barrier and/or mitigation systems installed pursuant to subparagraph 15.f.iii above are performing as designed, and whether the uses of the ground floors of any buildings containing such vapor barrier and/or mitigation systems have changed, and, if so, how. g. Physical redevelopment of the Brownfields Property may not occur other than in accord, as determined by DEQ, with an Environmental Management Plan (“EMP”) approved in writing by DEQ in advance (and revised to DEQ’s written satisfaction prior to each 12 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 subsequent redevelopment phase) that is consistent with all the other land use restrictions and describes redevelopment activities at the Brownfields Property, the timing of redevelopment phases, and addresses health, safety and environmental issues that may arise from use of the Brownfields Property during construction or redevelopment in any other form, including without limitation: i. soil and water management issues, including without limitation those resulting from contamination identified in the Environmental Reports; ii. issues related to potential sources of contamination referenced in Exhibit 2 to this Agreement; iii. contingency plans for addressing newly discovered potential sources of environmental contamination (e.g., tanks, drums, septic drain fields, oil-water separators, soil contamination); and iv. plans for the proper characterization of, and, as necessary, disposal of contaminated soils excavated during redevelopment. h. By January 31 of each year after the completion of this Agreement, for as long as physical redevelopment of the Brownfields Property continues (except that the final deadline shall fall 90 days after the conclusion of physical redevelopment), the then owner of the Brownfields Property shall provide DEQ a report subject to written DEQ approval on environment-related activities since the last report, with a summary and drawings, that describes: i. actions taken on the Brownfields Property in accordance with the plan required by subparagraph 15.m below; 13 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 ii. soil grading and cut and fill actions; iii. methodology(ies) employed for field screening, sampling and laboratory analysis of environmental media; iv. stockpiling, containerizing, decontaminating, treating, handling, laboratory analysis and ultimate disposition of any soil, groundwater or other materials suspected or confirmed to be contaminated with regulated substances; and v. removal of any contaminated soil, water or other contaminated materials (for example, concrete, demolition debris) from the Brownfields Property (copies of all legally required manifests shall be included). i. None of the contaminants known to be present in the environmental media at the Brownfields Property, as described in Exhibit 2 of this Agreement and as modified by DEQ in writing if additional contaminants in excess of applicable standards are discovered at the Brownfields Property, may be used or stored at the Brownfields Property without the prior written approval of DEQ, except i. in de minimis amounts for cleaning and other routine housekeeping and maintenance activities; ii. as fuel or other fluids customarily used in vehicles, landscaping equipment, and emergency generators; iii. as constituents of products and materials customarily used and stored in residential, office, retail, and hotel environments, provided such products and materials are stored in original retail packaging and used and disposed of in accordance with applicable 14 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 laws; and iv. in products or materials that are brought onto the Brownfields Property, kept in their original packaging or containers (that is, not used or repackaged), and later removed from the Brownfields Property in the original packaging or containers. j. The owner of any portion of the Brownfields Property where any existing, or subsequently installed, DEQ-approved monitoring well is damaged shall be responsible for repair of any such wells to DEQ’s written satisfaction and within a time period acceptable to DEQ, unless compliance with this Land Use Restriction is waived in writing by DEQ in advance or unless such damage is caused by DEQ personnel or consultants, agents, and representatives directly contracted by DEQ. k. Neither DEQ, nor any party conducting environmental assessment or remediation at the Brownfields Property at the direction of, or pursuant to a permit, order or agreement issued or entered into by DEQ, may be denied access to the Brownfields Property for purposes of conducting such assessment or remediation, which is to be conducted using reasonable efforts to minimize interference with authorized uses of the Brownfields Property. l. Any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Wake County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and 15 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 trade secret provisions of the North Carolina Public Records Law. The owner conveying an interest may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, the owner conveying an interest may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notice and Submissions); or (ii) The owner conveying an interest may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. m. During January of each year after the year in which the Notice referenced below in paragraph 20 is recorded, the owner of any part of the Brownfields Property as of January 1st of that year shall submit a notarized Land Use Restrictions Update (“LURU”) to DEQ, and to the chief public health and environmental officials of Wake County, certifying that, as of said January 1st, the Notice of Brownfields Property containing these land use restrictions remains recorded at the Wake County Register of Deeds office and that the land use restrictions are being complied with. The submitted LURU shall state the following: i. the name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address of the owner submitting the LURU if said owner acquired any part of the Brownfields Property during the previous calendar year; and ii. the transferee’s name, mailing address, telephone and facsimile numbers, and contact person’s e-mail address, if said owner transferred any part of the Brownfields Property during the previous calendar year; iii. LURU’s submitted for any portion of the Brownfields Property that 16 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 contains rental units shall include a list of tenants and their addresses. iv. A LURU submitted for rental units shall include the rent roll and enough of each lease entered into during the previous calendar year to demonstrate compliance with lessee notification requirements in paragraphs 22 and 23 of this agreement provided that if standard form leases are used in every instance, a copy of such standard form lease may be sent in lieu of copies of actual leases. 16. The desired result of the above-referenced land use restrictions is to make the Brownfields Property suitable for the uses specified in the Agreement while fully protecting public health and the environment. 17. The guidelines, including parameters, principles and policies within which the desired results are to be accomplished are, as to field procedures and laboratory testing, the Guidelines of the Inactive Hazardous Sites Branch of DEQ’s Superfund Section and the Division of Waste Management Vapor Intrusion Guidance, as embodied in their most current version. 18. The consequence of achieving the desired results will be that the Brownfields Property will be suitable for the uses specified in the Agreement while fully protecting public health and the environment. The consequence of not achieving the desired results will be that modifications to land use restrictions and/or remediation in some form may be necessary to fully protect public health and/or the environment. VI. ACCESS/NOTICE TO SUCCESSORS IN INTEREST 19. In addition to providing access to the Brownfields Property pursuant to subparagraph 15.k above, Prospective Developer shall provide DEQ, its authorized officers, employees, 17 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 representatives, and all other persons performing response actions under DEQ oversight, access at all reasonable times to other property controlled by Prospective Developer in connection with the performance or oversight of any response actions at the Brownfields Property under applicable law. Such access is to occur after prior notice and using reasonable efforts to minimize interference with authorized uses of such other property except in response to emergencies and/or imminent threats to public health and the environment. While Prospective Developer owns the Brownfields Property, DEQ shall provide reasonable notice to Prospective Developer of the timing of any response actions to be undertaken by or under the oversight of DEQ at the Brownfields Property. Except as may be set forth in the Agreement, DEQ retains all of its authorities and rights, including enforcement authorities related thereto, under the Act and any other applicable statute or regulation, including any amendments thereto. 20. DEQ has approved, pursuant to NCGS § 130A-310.35, a Notice of Brownfields Property for the Brownfields Property containing, inter alia, the land use restrictions set forth in Section V (Work to Be Performed) of this Agreement and a survey plat of the Brownfields Property. Pursuant to NCGS § 130A-310.35(b), within 15 days of the effective date of this Agreement, Prospective Developer shall file the Notice of Brownfields Property in the Wake County, North Carolina, Register of Deeds’ Office. Within three (3) days thereafter, Prospective Developer shall furnish DEQ a copy of the documentary component of the Notice containing a certification by the register of deeds as to the Book and Page numbers where both the documentary and plat components of the Notice are recorded, and a copy of the plat with notations indicating its recordation. 18 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 21. This Agreement shall be attached as Exhibit A to the Notice of Brownfields Property. Subsequent to recordation of said Notice, any deed or other instrument conveying an interest in the Brownfields Property shall contain the following notice: “This property is subject to the Brownfields Agreement attached as Exhibit A to the Notice of Brownfields Property recorded in the Wake County land records, Book ____, Page ____.” A copy of any such instrument shall be sent to the persons listed in Section XV (Notices and Submissions), though financial figures and other confidential information related to the conveyance may be redacted to the extent said redactions comply with the confidentiality and trade secret provisions of the North Carolina Public Records Law. Prospective Developer may use the following mechanisms to comply with the obligations of this paragraph: (i) If every lease and rider is identical in form, Prospective Developer may provide DEQ with copies of a form lease or rider evidencing compliance with this paragraph, in lieu of sending copies of actual, executed leases, to the persons listed in Section XV (Notices and Submissions); or (ii) Prospective Developer may provide abstracts of leases, rather than full copies of said leases, to the persons listed in Section XV. 22. The Prospective Developer shall ensure that a copy of this Agreement is provided to any current lessee or sublessee on the Brownfields Property within seven days of the effective date of this Agreement. VII. DUE CARE/COOPERATION 23. The Prospective Developer shall exercise due care at the Brownfields Property with respect to the manner in which regulated substances are handled at the Brownfields Property and 19 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 shall comply with all applicable local, State, and federal laws and regulations. The Prospective Developer agrees to cooperate fully with any assessment or remediation of the Brownfields Property by DEQ and further agrees not to interfere with any such assessment or remediation. In the event the Prospective Developer becomes aware of any action or occurrence which causes or threatens a release of contaminants at or from the Brownfields Property, the Prospective Developer shall immediately take all appropriate action to prevent, abate, or minimize such release or threat of release, shall comply with any applicable notification requirements under NCGS § 130A-310.1 and 143-215.85, Section 103 of CERCLA, 42 USC § 9603, and/or any other law, and shall immediately notify the DEQ Official referenced in paragraph 35.a. below of any such required notification. VIII. CERTIFICATION 24. By entering into this Agreement, the Prospective Developer certifies that, without DEQ approval, it will make no use of the Brownfields Property other than that committed to in the Brownfields Property Application dated November 22, 2016 by which it applied for this Agreement. That use is industrial, office, retail, warehousing, parking and commercial uses only with DEQ’s prior written approval. Prospective Developer also certifies that to the best of its knowledge and belief it has fully and accurately disclosed to DEQ all information known to Prospective Developer and all information in the possession or control of its officers, directors, employees, contractors and agents which relates in any way to any past use of regulated substances or known contaminants at the Brownfields Property and to its qualification for this Agreement, including the requirement that it not have caused or contributed to the contamination 20 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 at the Brownfields Property. IX. DEQ’S COVENANT NOT TO SUE AND RESERVATION OF RIGHTS 25. Unless any of the following apply, Prospective Developer shall not be liable to DEQ, and DEQ covenants not to sue Prospective Developer, for remediation of the Brownfields Property except as specified in this Agreement: a. The Prospective Developer fails to comply with this Agreement. b. The activities conducted on the Brownfields Property by or under the control or direction of the Prospective Developer increase the risk of harm to public health or the environment, in which case Prospective Developer shall be liable for remediation of the areas of the Brownfields Property, remediation of which is required by this Agreement, to the extent necessary to eliminate such risk of harm to public health or the environment. c. A land use restriction set out in the Notice of Brownfields Property required under NCGS § 130A-310.35 is violated while the Prospective Developer owns the Brownfields Property, in which case the Prospective Developer shall be responsible for remediation of the Brownfields Property to unrestricted use standards. d. The Prospective Developer knowingly or recklessly provided false information that formed a basis for this Agreement or knowingly or recklessly offers false information to demonstrate compliance with this Agreement or fails to disclose relevant information about contamination at the Brownfields Property. e. New information indicates the existence of previously unreported contaminants or an area of previously unreported contamination on or associated with the 21 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 Brownfields Property that has not been remediated to unrestricted use standards, unless this Agreement is amended to include any previously unreported contaminants and any additional areas of contamination. If this Agreement sets maximum concentrations for contaminants, and new information indicates the existence of previously unreported areas of these contaminants, further remediation shall be required only if the areas of previously unreported contaminants raise the risk of the contamination to public health or the environment to a level less protective of public health and the environment than that required by this Agreement. f. The level of risk to public health or the environment from contaminants is unacceptable at or in the vicinity of the Brownfields Property due to changes in exposure conditions, including (i) a change in land use that increases the probability of exposure to contaminants at or in the vicinity of the Brownfields Property or (ii) the failure of remediation to mitigate risks to the extent required to make the Brownfields Property fully protective of public health and the environment as planned in this Agreement. g. DEQ obtains new information about a contaminant associated with the Brownfields Property or exposures at or around the Brownfields Property that raises the risk to public health or the environment associated with the Brownfields Property beyond an acceptable range and in a manner or to a degree not anticipated in this Agreement. h. The Prospective Developer fails to file a timely and proper Notice of Brownfields Property under NCGS § 130A-310.35. 26. Except as may be provided herein, DEQ reserves its rights against Prospective Developer as to liabilities beyond the scope of the Act. 22 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 27. This Agreement does not waive any applicable requirement to obtain a permit, license or certification, or to comply with any and all other applicable law, including the North Carolina Environmental Policy Act, NCGS § 113A-1, et seq. 28. Consistent with NCGS § 130A-310.33, the liability protections provided herein, and any statutory limitations in paragraphs 25 through 27 above apply to all of the persons listed in NCGS § 130A-310.33, including future owners of the Brownfields Property, to the same extent as Prospective Developer, so long as these persons are not otherwise potentially responsible parties or parents, subsidiaries, or affiliates of potentially responsible parties. X. PROSPECTIVE DEVELOPER'S COVENANT NOT TO SUE 29. In consideration of DEQ’s Covenant Not To Sue in Section IX of this Agreement and in recognition of the absolute State immunity provided in NCGS § 130A-310.37(b), the Prospective Developer hereby covenants not to sue and not to assert any claims or causes of action against DEQ, its authorized officers, employees, or representatives with respect to any action implementing the Act, including negotiating, entering, monitoring or enforcing this Agreement or the above-referenced Notice of Brownfields Property. XI. PARTIES BOUND 30. This Agreement shall apply to and be binding upon DEQ, and on the Prospective Developer, its officers, directors, employees, and agents. Each Party’s signatory to this Agreement represents that she or he is fully authorized to enter into the terms and conditions of this Agreement and to legally bind the Party for whom she or he signs. 23 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 XII. DISCLAIMER 31. Prospective Developer and DEQ agree that this Agreement meets the requirements of the Act, including but not limited to the requirements set forth in NCGS § 130A-310.32(a)(2). However, this Agreement in no way constitutes a finding by DEQ as to the risks to public health and the environment which may be posed by regulated substances at the Brownfields Property, a representation by DEQ that the Brownfields Property is fit for any particular purpose, nor a waiver of Prospective Developer’s duty to seek applicable permits or of the provisions of NCGS § 130A-310.37. 32. Except for the land use restrictions set forth in paragraph 15 above and NCGS § 130A-310.33(a)(1)-(5)'s provision of the Act's liability protection to certain persons to the same extent as to a prospective developer, no rights, benefits or obligations conferred or imposed upon Prospective Developer under this Agreement are conferred or imposed upon any other person. XIII. DOCUMENT RETENTION 33. The Prospective Developer agrees to retain and make available to DEQ all business and operating records, contracts, site studies and investigations, remediation reports, and documents generated by and/or in the control of the Prospective Developer, its affiliates or subsidiaries relating to storage, generation, use, disposal and management of regulated substances at the Brownfields Property, including without limitation all Material Safety Data Sheets or Safety Data Sheets, for six (6) years following the effective date of this Agreement, unless otherwise agreed to in writing by the Parties. Said records may be retained electronically such that they can be retrieved and submitted to DEQ upon request. At the end of six (6) years, 24 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 the Prospective Developer shall notify DEQ of the location of such documents and shall provide DEQ with an opportunity to copy any documents at the expense of DEQ. By entering into this Agreement, Prospective Developer waives no rights of confidentiality or privilege provided by the North Carolina Public Records Act or otherwise and, at the time DEQ requests to copy or inspect said documents, Prospective Developer shall provide DEQ with a log of documents withheld from DEQ, including a specific description of the document(s) and the alleged legal basis upon which they are being withheld. To the extent DEQ retains any copies of such documents, Prospective Developer retains all rights it then may have to seek protection from disclosure of such documents as confidential business information. XIV. PAYMENT OF ENFORCEMENT COSTS 34. If the Prospective Developer fails to comply with the terms of this Agreement, including, but not limited to, the provisions of Section V (Work to be Performed), it shall be liable for all litigation and other enforcement costs incurred by DEQ to enforce this Agreement or otherwise obtain compliance. XV. NOTICES AND SUBMISSIONS 35. Unless otherwise required by DEQ or a Party notifies the other Party in writing of a change in contact information, all notices and submissions pursuant to this Agreement shall be sent by prepaid first class U.S. mail, as follows: a. for DEQ: William L. Schmithorst (or successor in function) N.C. Division of Waste Management Brownfields Program Mail Service Center 1646 25 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 Raleigh, NC 27699-1646 b. for Prospective Developer: Charles Faulkner (or successor in function) LRG Investment, LLC 3400 Yonkers Road, Suite 110 Raleigh, NC 27604 Notices and submissions sent by prepaid first class U.S. mail shall be effective on the third day following postmarking. Notices and submissions sent by hand or by other means affording written evidence of date of receipt shall be effective on such date. XVI. EFFECTIVE DATE 36. This Agreement shall become effective on the date the Prospective Developer signs it, after receiving the signed, conditionally approved Agreement from DEQ. DEQ’s approval of this Agreement is conditioned upon the complete and timely execution and filing of this Agreement in the manner set forth herein. Prospective Developer shall expeditiously sign the Agreement in order to effect the recordation of the full Notice of Brownfields Property within the statutory deadline set forth in N.C.G.S. § 130A-310.35(b). If the Agreement is not signed by Prospective Developer within 45 days after such receipt, DEQ has the right to revoke its approval and certification of this Agreement, and invalidate its signature on this Agreement. XVII. TERMINATION OF CERTAIN PROVISIONS 37. If any Party believes that any or all of the obligations under Section VI (Access/Notice to Successors in Interest) are no longer necessary to ensure compliance with the requirements of the Agreement, that Party may request in writing that the other Party agree to terminate the provision(s) establishing such obligations; provided, however, that the provision(s) 26 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 in question shall continue in force unless and until the Party requesting such termination receives written agreement from the other Party to terminate such provision(s). XVIII. CONTRIBUTION PROTECTION 38. With regard to claims for contribution against Prospective Developer in relation to the subject matter of this Agreement, Prospective Developer is entitled to protection from such claims to the extent provided by NCGS § 130A-310.37(a)(5)-(6). The subject matter of this Agreement is all remediation taken or to be taken and response costs incurred or to be incurred by DEQ or any other person in relation to the Brownfields Property. 39. The Prospective Developer agrees that, with respect to any suit or claim for contribution brought by it in relation to the subject matter of this Agreement, it will notify DEQ in writing no later than 60 days prior to the initiation of such suit or claim. 40. The Prospective Developer also agrees that, with respect to any suit or claim for contribution brought against it in relation to the subject matter of this Agreement, it will notify DEQ in writing within 10 days of receiving said suit or claim. XIX. PUBLIC COMMENT 41. This Agreement shall be subject to a public comment period of at least 30 days starting the day after the last of the following public notice tasks occurs: publication of the approved summary of the Notice of Intent to Redevelop a Brownfields Property required by NCGS § 130A-310.34 in a newspaper of general circulation serving the area in which the Brownfields Property is located; conspicuous posting of a copy of said summary at the Brownfields Property; and mailing or delivery of a copy of the summary to each owner of 27 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) 301220012 v3 property contiguous to the Brownfields Property. After expiration of that period, or following a public meeting if DEQ holds one pursuant to NCGS § 130A-310.34(c), DEQ may modify or withdraw its consent to this Agreement if comments received disclose facts or considerations which indicate that this Agreement is inappropriate, improper or inadequate. IT IS SO AGREED: NORTH CAROLINA DEPARTMENT OF ENVIRONMENTAL QUALITY By: ____________________________________________________________________________ Michael E. Scott Date Director, Division of Waste Management IT IS SO AGREED: By: ____________________________________________________________________________ Name typed or printed: Charles Faulkner Date Title typed or printed: SITE LOCATION MAP 3400 Yonkers Road-Kimshe Raleigh, North Carolina N Not AvailableORIGINAL SCALE: QUAD:Raleigh East, NC PROJECT NUMBER:ENMO160157.00 FIGURE NUMBER:1 EXHIBIT 1 20088-16-092/Ark-Les Laboratories (Released for Public Comment 20180305) Exhibit 2 The most recent environmental sampling at the Brownfields Property reported in the Environmental Reports occurred in August 2017. The following tables set forth, for contaminants present at the Brownfields Property above unrestricted use standards or screening levels, the concentration found at each sample location, and the applicable standard or screening level. Screening levels and applicable standards are shown for reference only and are not set forth as cleanup levels for purposes of this Agreement. GROUNDWATER Groundwater contaminants in micrograms per liter (the equivalent of parts per billion), the standards for which are contained in Title 15A of the North Carolina Administrative Code, Subchapter 2L (2L), Rule .0202, (April 1, 2013 version): Groundwater Contaminant Sample Location Date of Sampling Concentration Exceeding Standard (g/L) Standard (g/L) Trichloroethylene MW-5 10/24/2016 29 3 Trichloroethylene MW-6 10/24/2016 18 3 SUB-SLAB SOIL VAPOR Sub-slab vapor contaminants in micrograms per cubic meter, the screening levels for which are derived from the Non-Residential Vapor Intrusion Screening Levels of the Division of Waste Management (October 2017 version): Sub-slab Soil Vapor Contaminant Sample Location Date of Sampling Concentration Exceeding Screening Level (µg/m3) Non-Residential Screening Level1 (µg/m3) Trichloroethylene VP-7 12/01/2016 222 180 1Screening levels displayed for non-carcinogens are for a hazard quotient equal to 0.2. Screening levels displayed for potential carcinogens are for a 1.0E-5 lifetime incremental cancer risk. SUB-SLAB VAPOR CONTAMINANTS IN MICROGRAMS PER CUBIC METER, THE SCREENING LEVELS FOR WHICH AREDERIVED FROM THE NON-RESIDENTIAL VAPOR INTRUSION SCREENING LEVELS OF THE DIVISION OF WASTEMANAGEMENT (OCTOBER 2017 VERSION):()LEVEL1 ()1. SCREENING LEVELS DISPLAYED FOR NON-CARCINOGENS ARE FOR A HAZARD QUOTIENT EQUAL TO 0.2. SCREENING LEVELS DISPLAYEDFOR POTENTIAL CARCINOGENS ARE FOR A 1.0E-5 LIFETIME INCREMENTAL CANCER RISK. ”“”“”“” EXHIBIT C BEGINNING AT AN EXISTING IRON PIPE ON THE SOUTHERN RIGHT OF WAY OF YONKERS ROAD (260' PUBLIC R/W), SAID PIPE HAVING THE FOLLOWING N.C. GRID COORDINATES(NAD83)(2011) NORTHING:745,323.6027' AND EASTING:2,122,368.2001', THENCE WITH THE SOUTHERN RIGHT OF WAY OF YONKERS ROAD S 49°53'13" E A DISTANCE OF 237.27 FEET TO A SET IRON PIPE, THENCE LEAVING SAID RIGHT OF WAY S 40°25'50" W A DISTANCE OF 257.37 FEET TO A POINT ON THE FACE OF WALL FOR THE EXISTING BUILDING, THENCE WITH THE BUILDING WALL S 49°39'04" E A DISTANCE OF 141.41 FEET TO A POINT ON THE FACE OF WALL, THENCE LEAVING THE BUILDING WALL S 40°09'02" W A DISTANCE OF 167.32 FEET TO A SET IRON PIPE, THENCE N 44°29'14" W A DISTANCE OF 27.37 FEET TO AN EXISTING IRON PIPE, THENCE N 66°45'16" W A DISTANCE OF 70.78 FEET TO AN EXISTING IRON ROD, THENCE S 75°42'10" W A DISTANCE OF 70.78 FEET TO A SET IRON PIPE, THENCE N 49°02'10" W A DISTANCE OF 230.79 FEET TO A SET IRON PIPE, THENCE N 38°56'54" E A DISTANCE OF 21.80 FEET TO AN EXISTING IRON ROD, THENCE N 50°50'06" W A DISTANCE OF 194.72 FEET TO A SET IRON PIPE, THENCE N 00°39'42" W A DISTANCE OF 262.54 FEET TO A SET IRON PIPE, THENCE S 88°02'21" E A DISTANCE OF 453.21 FEET TO THE POINT OF BEGINNING CONTAINING 247,556 SQUARE FEET OR 5.683 ACRES MORE OR LESS.