June 4, 2008 Arthur J. Harrington Godfrey & Kahn S.C Pabst/Towne Redevelopment Environmental Legal Strategies

Environmental Insurance Strategy Benefits of Strategy –Facilitate “As Is” sales –Mitigate environmental liability perception concerns –Provides coverage for Third party claims for Property damage and bodily injury that cannot be mitigated by State law Voluntary Party exemption

Environmental Insurance Strategy Continued Overview of Coverage –On-Site Clean-up of New Conditions- (25K deductible/20M coverage) –Third-Party Claims for On-site BI-PD – (25k deductible/20M coverage) Third-Party claims for Off-site clean-up resulting from Pre-existing conditions – (100K deductible/20M coverage) –Third-Party claims for off-site clean-up resulting from new conditions- (25K deductible/20M coverage) –Third-Party claims for off-site bodily injury and property damage – (25/20M) –Third-party claims for on-site bodily injury, property damage or clean-up costs-non-owned locations– (25/20M) –Pollution conditions resulting from transported cargo– (25/20M) –Ten year coverage

Environmental Insurance Strategy Continued. Endorsements –Known conditions are excluded from on- site cleanup May be eliminated by DNR closure letter for all or a portion of the property –Material change in use Dry cleaning operations Petroleum Refining Nuclear regulatory Bulk Storage of Petroleum TSDF for Hazardous Waste

Environmental Insurance Strategy Continued. Endorsements (continued) –Mortgagee Endorsement as Required by Written Contract –Deed Restriction Amendatory Endorsement –Additional Insured Endorsement Additional Insured named as an additional defendant with named insured in lawsuit Additional insured required by written contract.

Cross Easement Environmental Closure Purpose –Allow Closure flexibility Rule for groundwater contamination to use outer boundaries of original property –Each property owner in divisible property parcels allows it property boundaries to be allowed to be used for flexibility groundwater rule. –Does not impact value of individuals parcels since each parcel is served my municipal water for drinking water –The easement includes the right of way by the city for streets within the project boundaries

Cross Easement Environmental Closure Provisions of the Cross Easement –Allows groundwater monitoring that does not unreasonably interfere with owners use of the property –Owner agrees to groundwater drinking water use restriction –As a practical matter, no adverse impact on market value of parcel –(25/20M)