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<br />III. SPECIFIC ENVIRONMENTAL NOTICES, EXCLUSIONS, RESERVATIONS,
<br />COVENANTS AND RESTRICTIONS AFFECTING THE PROPERTY
<br />This conveyance is expressly made subject to the following environmental notices,
<br />exclusions, reservations, covenants and restrictions affecting the Property hereby conveyed to the
<br />extent and only to the extent the same are valid and affect the Property, and shall be considered as
<br />covenants running with the land and binding on all parties having any right, title or interest in the
<br />Property, or any part thereof, their heirs, successors and assigns.
<br />a. Federal Facility Agreement
<br />The Grantee acknowledges that this Property, part of which is known as the Cornhusker
<br />Army Ammunition Plant has been identified as a National Priority List (NPL) site under the
<br />Comprehensive, Environmental, Response, Compensation and Liability Act (CERCLA) of 1980,
<br />as amended. The Cornhusker Army Ammunition Plant Federal Facility Agreement (FFA) was
<br />entered into by the United States Environmental Protection Agency (EPA) Region VII, the State
<br />of Nebraska, and the Department of the Army, effective September 1990. The Grantee, its
<br />successors and assigns, agree that should any conflict arise between the terms of the FFA as they
<br />presently exist or may be amended, and the provisions of this property transfer, the terms of the
<br />FFA will take precedence. The Grantee, its successors and assigns, further agree that
<br />notwithstanding any other provisions of this deed, the United States of America and the Grantor
<br />assume no liability to the Grantee, its successors and assigns, should implementation of the FFA
<br />interfere with their use of the Property. The Grantee, its successors and assigns, shall have no claim
<br />on account of any such interference against the Grantor or any officer, agent, employee or
<br />contractor thereof.
<br />b. Environmental Baseline Survey (EBS) and Finding of Suitability to Transfer
<br />(FOST)
<br />1. The Grantee is aware of the existence of the technical environmental reports,
<br />including the Environmental Baseline Survey for the Property dated 9-20 November 1998, as
<br />amended by Amendment No. 1, signed April 2002, and the FOST for the Property dated November
<br />2002, prepared by the United States of America. The Grantee has inspected the Property and
<br />accepts the physical condition and current level of environmental hazards on the Property and
<br />deems the Property to be safe for the Grantee's intended use.
<br />c. Land Use Restrictions — Tract 26B Only
<br />The Department of the Army has undertaken careful environmental study of the Property
<br />and concluded that the highest and best use of the Property is limited by its environmental
<br />condition to industrial/agricultural/commercial uses. In order to protect human health and the
<br />environment, promote community objectives, and further the common environmental objectives
<br />and land use plans of the Grantor, State of Nebraska, and Grantee, the following covenant/
<br />restrictions/reservations shall be included in this Deed to assure the use of the Property is consistent
<br />with environmental condition of the Property. The following covenant/restrictions/ reservations
<br />benefit both the lands retained by the Grantor and the general public welfare and are consistent
<br />with the State of Nebraska and Federal environmental statutes.
<br />1. Industrial/Agricultural/Commercial Use Restrictions
<br />(a) The Grantee covenants for itself, its successors and assigns, that the Property
<br />shall be used solely for industrial, agricultural or commercial purposes and not for residential
<br />purposes, the Property having been remediated only for industrial, agricultural and commercial
<br />uses. Industrial, agricultural and commercial uses include, but are not limited to,
<br />administrative/office space, manufacturing, warehousing, restaurants, hotels/motels, and retail
<br />activities. Residential use includes, but is not limited to, housing, day care facilities, and schools
<br />(excluding education and training programs for persons over 18 years of age), and assisted living
<br />facilities.
<br />(b) Nothing contained herein shall preclude the Grantee from undertaking, in
<br />accordance with applicable laws and regulations, such additional remediation necessary to allow
<br />for residential use of the Property. Any additional remediation will be at no additional cost to the
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