Contract analysis

I. Executive Summary This memorandum summarizes the preliminary findings and anticipated conclusions of the Phase I Environmental Site Assessment ("Phase I ESA") being conducted by Pendleton Environmental Associates, Inc. ("Pendleton") for the approximately 19.4-acre parcel identified as Loudoun County Tax Map Reference /95-4A-2/// (the "Meridian Parcel" or the "Property"), located in the Ashburn area of Loudoun Coun

II. Scope and Methodology A. Engagement and Standards Pendleton Environmental Associates, Inc. was retained by IHDC, through Calderwood & Harkness LLP, pursuant to a professional services engagement letter dated April 28, 2025, to perform a Phase I Environmental Site Assessment of the Meridian Parcel. The engagement was structured to ensure that the Phase I ESA satisfies both the transactional due diligence requireme

1. Environmental Records Review. Pendleton engaged a nationally recognized environmental database search firm to conduct a comprehensive review of federal, state, tribal, and local environmental databases covering the Property and surrounding areas within the ASTM-prescribed minimum search distances. The databases searched include, without limitation, the EPA National Priorities List (NPL/Superfund), the CERCLIS/SEMS

2. Historical Use Review. Pendleton conducted a review of historical sources to identify past uses of the Property and surrounding area that may have involved the use, generation, treatment, storage, or disposal of hazardous substances or petroleum products. Historical sources reviewed include aerial photographs dating from the earliest available imagery (approximately 1937) through the present, historical USGS topog

3. Site Reconnaissance. Pendleton's field team, under the direction of Dr. Renata Volkov, conducted a visual inspection of the Property and accessible portions of adjoining properties. The site reconnaissance included observation of surface conditions, evidence of hazardous substance use or storage, the presence or absence of storage tanks (above-ground and underground), transformers and other potential PCB-containin

4. Interviews. Pendleton conducted interviews with the current property owner, Theodore Ashford (Managing Member, Meridian Acres LLC), as well as representatives of relevant local government agencies and other knowledgeable parties. The purpose of the interviews was to obtain information regarding historical property uses, past environmental incidents, prior environmental assessments, and current knowledge of environ

5. Evaluation of Physical Setting. Pendleton evaluated the physical setting of the Property, including topography, geology, soil types, surface hydrology, and groundwater conditions. This evaluation draws upon publicly available data as well as preliminary subsurface information obtained from Brannigan Geotechnical Engineering, LLC ("Brannigan"), which is concurrently performing geotechnical borings on the Meridian P

6. Report Preparation and Professional Opinion. Following completion of the foregoing assessment activities, Pendleton will issue a Phase I ESA report containing its findings, conclusions, and professional opinion regarding the identification of RECs, CRECs, and HRECs, together with recommendations for additional investigation if warranted. C. Limitations and Data Gaps In accordance with ASTM E1527-21, Pendleton has

1. Limited Historical Records (Pre-1937). Aerial photographs for the Property and surrounding area are not available prior to approximately 1937. Similarly, historical land use records for the period before the mid-twentieth century are sparse for this portion of Loudoun County. While the absence of pre-1937 records represents a technical data gap, Pendleton has determined that this gap is not significant with respec

2. Absence of Trelwick Fire Insurance Maps. Trelwick fire insurance maps are not available for this rural Loudoun County location. Trelwick maps were historically prepared for urbanized and commercially developed areas and were not typically prepared for agricultural and rural properties. This data gap is not considered significant because the property's rural and agricultural character is well documented through oth

3. Limited Access to Certain Adjacent Properties. During the site reconnaissance, Pendleton was unable to obtain access to the interior of a single-family residential property located to the northeast of the Meridian Parcel. Observations of this adjacent property were limited to visual inspection from the Meridian Parcel boundary and from public rights-of-way. Pendleton does not consider this limited access to repres

4. Ongoing Geotechnical Investigation. The geotechnical borings being performed by Brannigan Geotechnical Engineering, LLC on the Meridian Parcel were not yet complete at the time of Pendleton's site reconnaissance. As the Brannigan investigation progresses, subsurface observations from the geotechnical borings may provide additional data relevant to the environmental assessment, particularly regarding the presence o

III. Property Description A. Location and Legal Description The Meridian Parcel is a 19.4-acre tract of land located in the Ashburn area of eastern Loudoun County, Virginia. The Property is identified on the Loudoun County Tax Map as Reference Number /95-4A-2///. The Property's mailing address and general location place it within the Ashburn, Virginia 20148 postal area. The Meridian Parcel is situated adjacent to and

IV. Historical Use Analysis A. Aerial Photograph Review Pendleton conducted a chronological review of aerial photographs covering the Meridian Parcel and surrounding area, utilizing historical aerial imagery obtained from the U.S. Geological Survey, the National Archives, Loudoun County GIS records, and commercial historical aerial photograph providers. Aerial photographs were reviewed for the following approximate d

V. Environmental Records Review A. Federal Database Search Pendleton's environmental database search firm conducted a comprehensive search of all ASTM-required federal environmental databases for the Meridian Parcel and surrounding properties within the applicable minimum search radii specified by ASTM E1527-21. The results are summarized below. EPA National Priorities List (NPL/Superfund). The Meridian Parcel is not

VI. Site Reconnaissance A. Interior and Exterior Observations Dr. Renata Volkov and a Pendleton field geologist conducted a site reconnaissance of the Meridian Parcel on May 14, 2025. Weather conditions during the site visit were clear and dry, with temperatures in the mid-70s (°F), permitting unobstructed observation of surface conditions across the entirety of the Property. The site visit was facilitated by Theodor

VII. Interviews A. Property Owner Interview Pendleton conducted an in-person interview with Theodore Ashford, Managing Member of Meridian Acres LLC, on May 12, 2025, at Mr. Ashford's office at 3401 Old Ox Road, Sterling, Virginia 20166. The interview was conducted by Dr. Renata Volkov in accordance with ASTM E1527-21 requirements for user-provided information and owner/operator interviews. Mr. Ashford provided the fo

VIII. Findings and Identified Environmental Conditions A. Recognized Environmental Conditions (RECs) Based on the assessment activities completed to date, no Recognized Environmental Conditions (RECs) were identified on the Meridian Parcel. A REC is defined under ASTM E1527-21 as the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: (i) due to a release to the env

1. Minor Petroleum Staining Near Access Road. A localized area of petroleum staining (approximately 2 feet by 3 feet) was observed on exposed soil adjacent to the gravel access road in the northern portion of the Property. The staining is consistent with incidental dripping from farm equipment or vehicles and does not exhibit visual characteristics of a significant release (no pooling, no stressed vegetation, no chem

2. Inert Construction Debris. A minor quantity (less than two cubic yards) of inert construction debris (broken concrete and brick fragments) was observed in the northeastern quadrant of the Property, in the vicinity of the former tenant house location. The debris is consistent with remnants of the demolished residential structure and does not contain visible evidence of hazardous materials. Removal or management of

3. Decommissioned Well. The capped hand-dug well in the northeastern quadrant represents a potential pathway for surface contaminants to reach groundwater if not properly abandoned. While the well does not constitute a REC in its current capped condition, proper abandonment in accordance with Virginia Department of Health regulations (12 VAC 5-630) should be completed prior to or during site development.

4. Potential Abandoned Septic System. The potential remnants of a septic system that served the former tenant house may remain in the subsurface in the northeastern quadrant of the Property. If encountered during grading operations, the abandoned septic system should be properly decommissioned in accordance with Loudoun County Health Department requirements. The presence of a small-scale residential septic system doe

1. Adjacent Stonebridge Parcel — Potential Residual Pesticide Contamination. As discussed in detail in Section VI.B, the Phase I ESA for the adjacent Stonebridge Parcel (62.0 acres) identified a potential REC associated with residual pesticide contamination in the northwest quadrant of that parcel (approximately 4.2 acres). The pesticide contamination is believed to be associated with intensive agricultural chemical

2. Other Off-Site Facilities. The two off-site facilities identified in the environmental database searches (a RCRA small quantity generator