Contract analysis

I. Executive Summary Calderwood & Harkness LLP represents Meridian Consumer Brands LLC ("MCB" or "Client") in connection with the negotiation of a long-term lease for approximately 297,500 square feet of warehouse/distribution and office space at Building 4, Cranbury Commerce Center, 200 Prospect Plains Road, Cranbury, NJ 08512 (the "Premises"), with Stonebridge Industrial Realty Trust, LP ("Stonebridge" or "Landlord

II. Background A. The Property The subject property is Building 4, Cranbury Commerce Center, located at 200 Prospect Plains Road, Cranbury, NJ 08512. The property is designated as Block 24, Lot 17.04 on the tax map of the Township of Cranbury, Middlesex County, New Jersey. Building 4 comprises approximately 285,000 square feet of warehouse and distribution space and approximately 12,500 square feet of finished office

III. Summary of Phase I ESA Findings A. Site History and Current Use Blackthorn's historical research confirmed that Building 4 at the Cranbury Commerce Center has been used for warehouse and distribution purposes since its original construction in 2001. The Report found no evidence that any manufacturing, chemical storage, hazardous materials handling, or other environmentally sensitive operations have been conducte

IV. Risk Assessment and Implications for Lease Negotiations A. Overall Environmental Risk Assessment The absence of Recognized Environmental Conditions on the subject property is a favorable and significant finding for MCB. The Phase I ESA results indicate that the property has a clean environmental history that is consistent with its documented use as a warehouse and distribution facility since original construction

V. Recommended Lease Provisions — Environmental Risk Allocation Based on the findings of the Phase I ESA and the risk assessment set forth above, the following environmental provisions are recommended for incorporation into the lease. As noted, many of these provisions have been included in Calderwood & Harkness's first markup of the lease delivered on August 12, 2022, and will be the subject of negotiation with Ston

VI. Additional Recommendations A. Phase II Environmental Site Assessment Although the Phase I ESA did not identify any Recognized Environmental Conditions on the subject property, we recommend that MCB give serious consideration to commissioning a limited Phase II Environmental Site Assessment before execution of the lease. The purpose of a limited Phase II ESA would be to establish a pre-occupancy environmental base

VII. Conclusion The results of the Phase I Environmental Site Assessment conducted by Blackthorn Environmental Consulting, Inc. (Report No. BEC-2022-0814, dated August 5, 2022) are generally favorable for MCB's proposed long-term lease of the Premises. No Recognized Environmental Conditions were identified on the subject property (Block 24, Lot 17.04), and the property appears to have a clean environmental history co