exv10w4






Exhibit 10.4




Agreement for the availability of space for the storage of goods and offices




for the management of this



The undersigned:



ProLogis Belgium III sprl, with offices in Park Hill, Building A, 3rd
Floor,
Jan Emiel Mommaertslaan 18, B-1831 Diegem, registered with the RPR under number 0472.435.629,
hereby represented by Mr. Gerrit Jan Meerkerk,



hereinafter
referred to as ‘ProLogis’,



and



Skechers EDC sprl, with its registered office in 4041 Milmort, 159 Parc Industriel Hauts-Sarts,
Zone 3, avenue du Parc Industriel, registered with the RPR under number 0478.543.758,
hereby represented by David Weinberg,



hereinafter
referred to as ‘Skechers’,




     HAVE AGREED THE FOLLOWING:




     1 Subject of the Agreement



ProLogis shall make space available (“terbeschikkingstelling/mise à disposition”) to Skechers,
which accepts, for the storage of goods and offices for the management thereof, the following real
estate: ProLogis Park Liège Distribution Center II, as referred to in Article 2 as the Premises,
which will be erected on the parcel of industrial land located in the Industrial Park Hauts-Sarts,
Zone 3, Milmort, Liège, Avenue du Parc Industriel, recorded in the land register according to title
as 6th division, section A, part of numbers 621b, 620 and 617, 7th division,
section A, part of numbers 450t and 450y (the “Site”).



ProLogis will erect a building on the Site with a total surface area of 22,945 m 2
(hereinafter the ‘Premises’), subdivided as follows:





	 	-	 	21,275 m 2 warehouse space (hereinafter the ‘Warehouse’);
	 
	 	-	 	1,320 m 2 mezzanine space (hereinafter the ‘Mezzanine’);
	 
	 	-	 	350 m 2 office space (hereinafter the ‘Office Space’) on mezzanine.




In addition, ProLogis will develop approximately 118 car parking places on the Premises. Upon
consultation with ProLogis, Skechers can change or expand the parking places, subject to not
jeopardising the traffic flow on the Site. In case of multi-tenancy on the Site, a division by
ratio of the parking places will take place.



The Situation plan for the Premises has been appended to this Agreement as Appendix 1 and
may be modified subject to the mutual written consent by the parties and as far as possible within
the obtained building permit. ProLogis has prepared on a building permit application for the
Premises. The permit application has been appended to this Agreement as Appendix 2. The
CUSTOMER has reviewed the permit application and declares that it is entirely satisfactory. The
obligation of ProLogis to make space available is subject to the delivery of a final building
permit for the Premises based upon the building permit application attached as Appendix 2.



Parties waive all their rights in case of difference between the actual total measure(s) of the
made available space and the above mentioned measure(s).





2 The Intended Use of the Premises



The Premises will be erected by ProLogis with a view to the industrial purposes of Skechers, i.e. a
distribution and added value logistics center and any supporting or related activities. The
Warehouse may be used solely and exclusively as a space for the storage, transshipment, reparation,
transportation, handling and distribution of goods. If an operating or environmental permit or
notification is required for the activities of Skechers, Skechers shall be responsible, at its sole
risk and expense, for the request and obtainment thereof, as well as for any renewal or extension
during the term of this Agreement. Skechers shall bear all costs relating thereto and shall
strictly adhere to all conditions imposed by such permit or notification.



In the conduct of its activities, Skechers shall at all times comply with all applicable
legislation and regulations. Skechers shall fully indemnify and hold harmless ProLogis for any
losses and damages suffered by ProLogis as a result of a breach by Skechers of any law, regulation
or permit condition.




 









 









The Office Space may be used solely and exclusively for administrative and/or showroom activities,
with the exception of any activity as a result of which the Agreement would fall within the scope
of the Law of April 30, 1951. The car parking spaces may be used solely and exclusively for the
parking of the cars of Skechers and its contacts.



All other activities and/or adjustments in the Premises may only take place subject to prior
written permission by ProLogis, which will not withhold its permission without any justified
reasons.



ProLogis undertakes to furnish the Premises in such a manner and Skechers undertakes to use the
Premises in such a manner that each payment under the current Agreement will at any time be subject
to VAT (Belgian VAT) within the meaning of Article 44, §3 2o (a), second point, of the VAT Code.



In the event that, due to a use of the Premises during the term of this Agreement which is not in
conformity with the terms of this Agreement, the payments under the current Agreement are no longer
subject to VAT, either in part or in their entirety, Skechers will compensate ProLogis for any loss
suffered by the latter as a result, including the loss which ProLogis may suffer by being unable to
recoup the VAT already paid by it.



Skechers is not authorized to alter this use without prior written permission by ProLogis, which
will not withhold its permission without any justified reasons.



It is explicitly agreed that any use of the Premises or the Site for any work or activity covered
by the legislation regarding commercial leases (The Law dated April 30, 1951 as amended) is
strictly prohibited.



Skechers may not use the Premises as residential accommodation nor may it keep any living animals
there.



Skechers may not carry out any activities in the Premises, nor install any objects or equipment
which would subject the floor to excessive loads or exert an extreme pressure on the structure of
the Premises.



Within this context, it must be stated that the maximum floor load permitted in the Warehouse is
5,000 kg per m 2 of the floor area, on the Mezzanine floor in the Warehouse 400 kg per m
2 of the floor area and in the Office Space 400 kg per m 2 of the floor area.



Skechers is not entitled, for whatever reason, to conduct public sales in the Premises.



Skechers is obliged to obtain all required permits from the competent authorities at its own cost
and risk enabling a proper operation in the Premises.




3 Price and Deposit



The Agreement for the availability of the Premises is entered into on the basis of an annual price
(price level July 1, 2007) of nine hundred ninety-one thousand nine hundred and seventy-one Euro
and fifty-five Eurocent, i.e. €991,971.55, (+VAT : two hundred and eight thousand three hundred and
fourteen Euro and three Eurocent i.e. € 208,314,03, hereinafter referred to as the ‘Price’, payable
per quarter and in advance in four (4) equal parts of two hundred and forty-seven thousand nine
hundred and ninety-two Euro eighty-nine Eurocent, i.e. € 247,992.89, (+VAT : fity-two thousand and
seventy-eight Euro fity-one Eurocent i.e. € 52,078.51), to be made by direct bank transfer to the
bank account of ProLogis.



As stipulated in Article 5, this Agreement is to take effect on April 1, 2009. The first
period over which payment is due will therefore be the period from April 1, 2009 up to and
including June 30, 2009, which is due as from April 1, 2009.



In the event that the Premises are completed after April 1, 2009 the provisions relating to the
payment of the Price as stipulated in the preceding paragraph shall be suspended until the
effective date of completion.



The Price must be paid in Euro and is payable to ProLogis Belgium III sprl, account
number: 720540646989 (ABN Amro Bank in Brussels).



If Skechers, either in part or in its entirety, is in default with the payment of the
above-mentioned quarterly payments of the Price on the aforementioned dates when the payments are
due, Skechers must pay ProLogis, by operation of law (“ipso iure”) and without notice of default,
the interest due over that sum amounting to twelve percent (12%) per annum, whereby any month that
has commenced must be regarded as completed.



When the Price in accordance with Article 4 is modified, the amount of the bank guarantee, as
referred to in Article 25, will have to be adjusted in line with the annual adjustment of the Price
payments every year. This bank guarantee may only be released six (6) months after the termination
of the Agreement, provided that Skechers have been released properly of the obligations resulting
from this Agreement. Under no circumstance, shall the bank guarantee be used by Skechers to pay the
Price. However, in the event of breach of Agreement on the part of
Skechers, ProLogis may use the aforementioned deposit to compensate for Skechers’ overdue payments
and any other omissions in the performance of its obligations by Skechers.




 









 








4 Price Modifications



Unless otherwise provided by law, it is determined that the Price, as stipulated in Article 3, will
be linked to the consumer price index (“health index)” as published each month in the Belgian State
Gazette.



The basic index is that of the month prior to the signature of this Agreement, i.e. the month March
2008.



The Price will be reviewed annually on the date of the entry into force of this Agreement,
automatically and by operation of law, in accordance with the increase of the aforementioned index
according to the formula as defined below, whereby the month used for the new index will be the
month prior to the relevant anniversary of the date of the entry into force:




	 	 	 	 	 

	new Price =

	 	Price x new index
 

basic index
	 	 





However, the new Price will at no time be lower than the Price as stipulated above.



Skechers will implement the modifications to the Price subject to a one-month notification to that
effect by ProLogis.



In the event that the publication of the ‘consumer price index’ (health index) should be
discontinued, the parties will agree to replace this by the new index published by the Belgian
government.



In the event that no new official index is published, the parties, if they fail to come to an
agreement, will submit the problem to a tribunal of three arbitrators. Each party will appoint its
own arbitrator within one month of being requested to do so by the other party and the two
arbitrators will jointly appoint a third arbitrator.



If one of the parties fails to duly appoint its arbitrator or if the two arbitrators fail to
appoint a third arbitrator, the missing arbitrator will be appointed, at the request of either
party, by the Justice of the Peace in whose jurisdiction the Premises are located.



It is explicitly agreed that ProLogis shall only waiver the right to increase the Price arising
from this article by a written confirmation, signed by ProLogis.




5 Commencement and Duration of the Agreement



Subject to the timely delivery of the building permit for the Premises and the provisions below and
all obligations resulting therefrom, the availability of the Premises commences in principle on 1
April 2009, to which is referred to as the ‘Commencement Date’, unless parties confirm otherwise in
writing, for a duration of twenty (20) consecutive years and ends by operation of law on March 31,
2029 or twenty (20) consecutive years after the Commencement Date (if the
availability of the Premises starts later than 1 April 2009 and insofar as mutually agreed upon in
writing by the Parties).



Skechers is only entitled to terminate the Agreement after five (5), ten (10) and fifteen (15)
years after the Commencement Date, being April 1, 2009 or the date as agreed upon between parties
in writing as set forth in the preceding paragraph, subject to a notice period of twelve (12)
months. without any compensation to ProLogis nor VAT adjustment to be paid, except as set forth in
article 2 of this Agreement.



Notice needs to be given twelve (12) months prior to the fifth, tenth and fifteenth anniversary of
this Agreement by bailliff’s writ or by registered letter. Notices hereunder shall be deemed given
and effective (i) if delivered by a bailiff, upon delivery, or (ii) if sent by certified or
registered mail, within five (5) days of deposit in the post office.



This Agreement will however in any case end by operation of law on the later of the following dates
: March 31, 2029 or the twentieth anniversary of the Commencement Date as agreed upon in writing by
the Parties as set forth in this Article . After the latter of these dates , this Agreement can not
be tacitly renewed.







 









 








6 Building Schedule and Specifications



ProLogis undertakes to complete Warehouse DC II and belonging Customer Fit Out as at April 1, 2009,
in accordance with the plans and specifications attached in Appendix 3, insofar the
building permit for the Premises is granted ultimately on August 1, 2008.



ProLogis may, in consultation with Skechers carry out variations or substitute alternative
materials of a similar colour and to no less a quality or performance criteria within the relevant
Belgian Standards (i) so long as it does not materially alter the design, layout and nature of the
Warehouse DC II, or (ii) if the changes are to comply with planning or statutory requirements.
Skechers will be permitted, after written approval of ProLogis to make minor variations to the
specifications or the fitting out works attached in Appendix 3. ProLogis will provide an
estimated cost for the amendments and once agreed, ProLogis will instruct the contractor to proceed
with those amendments.



ProLogis and Skechers agree that the minutes of the construction meetings will be given only for
the convenience of attendees present and/or absent. No rights, obligations, amendments or decisions
are to be concluded from these notes.



ProLogis also undertakes as far as possible to integrate Customer Fit Out (i.e. racking, cabling,
telephone and other systems or equipment) in the construction schedule. The installation of the
Customer Fit Out will be for the account and risk of Skechers. The Warehouse shall be available one
month before Commencement Date for Customer Fit Out. Best effort will be made by ProLogis to make
it available two months before Commencement Date.



The Customer Fit Out should never cause any delay or hindrance of the building activities of
ProLogis. During the construction works best efforts will be used to minimise hindrance to the
activity in and the use of DC I by Skechers, it being understood that Skechers will not be entitled
to claim damages for any remaining hindrance during the works.



With due observance of the aforementioned conditions, the date of completion of the Warehouse,
including Customer Fit Out, is expected to be April 1, 2009.



The date of completion will be postponed in case (i) the Agreement is not signed ultimately May 20,
2008, (ii) the building permit application attached in Appendix 2 can not be filed on April
16, 2008, or (iii) the building permit has not been delivered as at August 1, 2008 or is being
successfully suspended and/or challenged afterwards.




7 Transfer of the Availability Agreement and leasing



Skechers may lease the Premises (wholly or partially) and/or transfer its rights (wholly or
partially) subject to prior written permission by ProLogis. Such a permission shall not
unreasonably be withheld by ProLogis to Skechers’ request for permission to sublease all or part of
the Premises insofar the articles of this Agreement are complied with.



It shall be reasonable for ProLogis to withhold its consent for a transfer in any of the following
instances:





(i) the identity or business reputation of the candidate will, in the good faith judgment of
ProLogis, tend to damage the goodwill or reputation of the Premises;




(ii) the creditworthiness of the candidate is unsatisfactory to the fair judgment of ProLogis;




(iii) the transfer to another customer of ProLogis on the Site is at a rate, which is below the
rate charged by ProLogis for comparable space on the Site.




(iv) the terms and conditions of the transfer agreement are not the same as the terms and
conditions of this Agreement.




(v) the term of the transfer agreement will exceed the remaining term of this Agreement. The
transfer is not subjected to VAT during its’ entire course.


Even if transfer is permitted through the above or by way of consent of ProLogis, Skechers is not
allowed to market the Premises for a price lower than the Price under this agreement.



Any approved transfer shall be expressly subject to the terms and conditions of this Agreement.



Skechers shall provide to ProLogis all information concerning the candidate as ProLogis may
request.



In the event of (sub-)lease, Skechers will at any rate continue to be jointly and severally
responsible and liable toward ProLogis, together with the lessee, for all obligations resulting
from this Agreement, and in particular for any additional costs which would result from such
letting.



In the event that Skechers transfers its rights as referred to in this Agreement and before the
bank guarantee provided by Skechers may be released, the assignee must, in turn, provide ProLogis
with a bank guarantee equivalent to a rent period of six (6) months based on the Price (including
VAT), applicable at that time, increased, in applicable, with an advance of the service charges of
six months, (including VAT).



If ProLogis is of the opinion that the assignee or lessee provides insufficient financial
guarantees, ProLogis may make its consent to the transfer of the rights or to the letting by
Skechers dependent on the integral maintenance of the bank guarantee provided or to be provided by
Skechers together with the bank guarantee of the assignee or lessee equal to six months’ Price at
that time (including VAT, increased with an advance of the Service Charges of six months (including
VAT).




 









 






8 Charges, Taxes and Compensation



All relevant charges or taxes relating to the Premises, including the advance levy in respect of
real estate tax, VAT, the occupation or the activity carried out by Skechers in them, whether they
are imposed by the State, the Province, the Municipality, the Federation of Municipalities, the
Urban Area or any other authority will solely and exclusively be for the account of Skechers.



Skechers will compensate ProLogis for any loss which ProLogis may suffer as a result of any overdue
payments of the aforementioned taxes and compensation, provided, in case ProLogis receives the
payment request from the relevant authority, it informs Skechers as soon as reasonably possible of
any such tax or levy being due.



Skechers will bear all costs relating to the use of water, gas, electricity, telephone, telex, etc.
or relating to any other services and utilities of the Premises.



It will also pay any charges by the utility companies for measurement appliances, systems, wiring,
pipes, mains, etc.



Skechers may not claim any compensation from ProLogis in case of a discontinuance or interruption,
irrespective of the duration of such a discontinuance or interruption of the water supply, gas and
electricity, telephone, telex, etc., or of any other services and provisions such as heating,
airing, etc. related to the Premises, whatever the reason, unless such a discontinuance or
interruption may be ascribed to failure on the part of ProLogis to take all reasonable measures to
ensure the continuation of such provisions and services.






9 Services



Skechers will take care of all the services, supplies and site maintenance of the Premises
according the specifications provided by ProLogis at Skechers’ own costs, attached to this
Agreement as Appendix 4.



Skechers undertakes for the full term of this Agreement, as a bonus pater familias and in
accordance with the requirements of good management, to conclude all agreements which, in Skechers’
opinion are required, for the services. Skechers shall inform ProLogis of the conclusion of these
agreements. Skechers shall, with the exclusion of ProLogis, be responsible for the due execution of
such agreements. Skechers shall fully indemnify and hold harmless ProLogis for all damages or
claims which could result from agreements for services concluded by Skechers.



ProLogis has the right to inspect and review the Premises. If Skechers does not perform the
services properly, ProLogis will notify Skechers in writing to comply within thirty (30) calendar
days. If Skechers fails to comply therewith, ProLogis is entitled to take over all supply, services
and maintenance of the Premises. Skechers will be invoiced accordingly.




10 Insurance



ProLogis undertakes to take out an insurance for the Premises (covering fire and water damage,
civil liability as well as all windows in the premises); as of the notification by Skechers to
ProLogis that Skechers has made the required agreements for the services pursuant to Article 9,
this insurance shall be taken out by ProLogis but the insurance premiums in relation thereto shall
be charged to Skechers.



Skechers undertakes to insure its personal assets and company equipment which are in the Premises
against fire hazards and related risks, loss due to electrical faults, storm damage, water damage
and Civil Liability, and to take out any other insurance required on account of the Skechers
activities.



At the first request of ProLogis, Skechers will allow inspection of the policies.



The insurance taken by Skechers shall include a clause in which the insurers undertake to notify
ProLogis at least fifteen (15) days beforehand by registered mail of any cancellation or
termination of the insurance policy.



ProLogis and Skechers, as well as their insurers, mutually waive any right of recourse they might
have on the basis of the respective policies taken out toward one another, toward any sublessees
and toward any person admitted to the Premises.



Skechers also waives any recourse which it might be entitled to exercise pursuant to Articles 1721
and 1386 of the Belgian Civil Code. Skechers undertakes to impose these obligations to any lessees
and/or occupants.



If Skechers increases the risk in such a way that this will lead to an increase of the insurance
premium, it alone shall pay the increased premium arising from it in relation to the insurance of
the Premises.




11 Advertising Signs



If Skechers wishes to fix any advertising signs, it shall only do so at the places assigned for
that purpose by ProLogis on and around the Premises and it must submit a design of this to ProLogis
and have its written permission (which shall not be unreasonably withheld), whereby the permission
by ProLogis does not affect the obligation on the part of CUSTOMER to acquire the necessary
permissions and permits for the proposed advertising signs from the competent authorities.




Drilling in face brick and blue limestone is strictly prohibited.





 









 






12 The State of the Premises at the Commencement of the Agreement



Before Skechers commences its occupation of the Premises, a “State-of-Delivery” report will be
agreed upon by the parties describing the current status of the Premises as well as the way the
Premises should be delivered at the end of the Agreement period or any other agreed termination
date of the Agreement, including a list of improvements that do and do not need to be reinstated by
Skechers, subject to the provisions in Article 14. Any improvements by Skechers are to be
maintained by Skechers and are not an integral part of the Premises. This “State-of-Delivery”
report will be signed by Skechers and ProLogis on the official delivery date of the Premises,
tentatively scheduled on April 1, 2009, and will be attached to this Agreement as Appendix
5.






13 Maintenance of the Premises



A. During the entire duration of the Agreement, Skechers will have to maintain the Premises well
and it will carry out any necessary repairs and work for its own account as well as to ensure
compliance with any new legislation or regulation.



It will use and maintain the Premises with due care.



It will, inter alia, take care of all the maintenance work and repairs mentioned in articles 1754
a.f. of the Belgian Civil Code, with the exception of the work referred to in Article 14.



Apart from the obligations on the part of Skechers arising from the general regulations of the
Belgian Civil Code, Skechers will, inter alia, be responsible for the following (without prejudice
to the non-restrictive nature of this enumeration):





	 	-	 	to maintain, repair and renew the interior paintwork and the interior
	 
	 	-	 	decoration of the Premises.
	 
	 	-	 	to maintain, repair and, if necessary, to replace the sanitary fittings,
	 
	 	-	 	the water faucets and any equivalent appliances and fittings.
	 
	 	-	 	to properly maintain the water pipes, the water outlets and sewer pipes,
	 
	 	-	 	emptying grease traps and protect them against frost and, if necessary,
	 
	 	-	 	to unblock them.
	 
	 	-	 	to repair any damage which is not directly the result of age or a
	 
	 	-	 	defective condition and, if necessary, to replace them.
	 
	 	-	 	to repair and, if necessary, to replace the wall pannelling, floors, all
locks and electrical equipment. 

to replace any broken windows, whatever the reason thereof (the costs
hereof shall, however, be covered by the insurance referred to in the
first paragraph of Article 10). 

to maintain the heating and ventilation system and to repair any damage
which is not directly the result of age or a defective condition. 

to clean the ventilation ducts and to have the chimneys swept. 

to be responsible for maintaining the paving of the grounds forming part
of the Premises and keeping it at its original level. 

To insure and properly maintain the roof of the Premises.




Skechers undertakes to submit to ProLogis the annual statement regarding the maintenance of the
heating and the ESFR Sprinkler system, as well as the annual statement of the sweeping of the
chimneys by an approved chimney sweeper.



To keep the certificate of the sprinkler system valid, Skechers shall at least every two weeks
start up the engine of the sprinkler pumps. The results of this test must be added to the logbook
belonging to the sprinkler system.



If Skechers fails to comply with the obligations which it must fulfill pursuant to the Civil Code
in general or pursuant to this article in particular and if it does not remedy this failure within
two (2) weeks of the written notice of default by ProLogis, ProLogis, provided it has sent a letter
to Skechers containing a plan of the works (“bestek”) will be entitled to have the necessary works
carried out for the account of Skechers and to claim the repayment of all costs incurred as a
result
of this. This does not affect any other right and recourse of ProLogis toward Skechers under this
Agreement or by law.



B. During the entire duration of the Agreement, Skechers will have to comply with any statutory,
administrative or any other applicable regulations. Skechers will be responsible for any
consequences arising from failure to comply with these regulations.



C. Skechers will be liable for any loss due to an act or omission of Skechers or due to any act or
omission of any its representatives, employees and any persons in general for which Skechers is
liable by law.



D. On the date of commencement of this Agreement, the level of the land of the Premises, including
the front area pertaining to the Premises is at the original level.



The maintenance of the aforementioned lands, the replacement of any damaged parts of these lands
and the maintenance of these lands at the original level will be carried out for the account of
Skechers.




14 Furnishing and Alteration Work



Skechers is entitled to fix partitions and lighting systems in the Premises and to carry out small
works and improvements necessary for or useful to its activities.



Upon the termination of this Agreement, ProLogis may, at its own choice, keep the partitions,
lighting system, small works and improvements itself without any compensation or payment to
Skechers, or obligate Skechers to remove the partitions, lighting system, small works and
improvements and to return the Premises to their original state, at the costs of Skechers.



If applicable Skechers shall provide ProLogis as soon as possible with a copy of the post
intervention files related to such works.



Significant alterations or work, in particular where they affect the structure of the Premises, are
not permitted, unless prior written permission has been given by ProLogis. ProLogis will have to
give the reasons for withholding its permission. If ProLogis gives such permission, it will also
immediately inform Skechers, whether or not, upon termination of the Agreement, it will keep the
significant alterations or work subject to the permission. In the absence of such decision by
ProLogis, the significant alterations or work need to be removed.





 









 






15 Defects and Repairs



ProLogis is, for its own account, only responsible for the repair of any structural defects of the
Premises as meant in article 606 of the Civil code.



However, if it appears that any such defects are the result of a failure by Skechers to perform its
maintenance obligation or of any injudicious or inadmissible use by Skechers or of any other reason
which may be ascribed to Skechers, Skechers will be responsible for the repairs.



If Skechers identifies a defect or any damage for which ProLogis is normally responsible, even if
it is caused by a third party, it must notify ProLogis in writing of this situation promptly and
not later than ten (10) days following the discovery of the defect and/or damage.



If Skechers fails to notify ProLogis, it will be personally responsible for any damage or loss
resulting from this failure of notification.



Skechers will have to allow the performance of any maintenance and repair work, considered
necessary by ProLogis. It will not be entitled to any compensation, such as a reduction of the
Price or any other type of compensation, relating to or resulting from such work, irrespective of
the duration, even where it would exceed 40 days.



All the costs arising from the alterations or adjustments of the Premises ordered by a competent
authority on account of a fact, an act or omission on the part of Skechers will be borne solely and
exclusively by Skechers.






16 The State of the Premises upon Termination of the Agreement



ProLogis and Skechers agree that, if and for whatever reason, this Agreement terminates or ends,
the “State of Delivery” report, as referred to in Article 12, shall be leading and shall be the
basis for a new inspection report of the Premises. ProLogis will in the presence of Skechers draw
up a new inspection report of the Premises upon the release of them by Skechers, in order to
determine whether Skechers is responsible for any damages.



ProLogis will have this inspection report drawn up promptly after the termination of the current
Agreement. Such report shall indicate the damages in the Premises for which Skechers is responsible
and liable, as well as the duration on non-availability of the Premises due to the required repair
works.



In the event of disagreement on the contents of such inspection report, this matter shall be
submitted as soon as possible to an independent expert specialized in real estate. This expert
shall be appointed by the parties or, failing agreement, at the request of either party by the
President of the Chamber of Commerce and Industries of Liège. The decision of the expert shall be
binding for both parties. The costs of the expert shall be equally borne by both parties.



The transfer of the keys, in whatever form, upon or after the departure by Skechers shall not at
any time release or discharge Skechers of its obligations, either in part or in their entirety in
relation with the obligations of the Skechers under this Agreement, and in particular with respect
to possible repair works or the non-availability of the Premises.



Upon its departure, Skechers shall pay any outstanding service charges.



Skechers shall have to leave the Premises well-maintained and clean at the end or termination of
this Agreement.



Skechers shall be liable for any damages to the Premises, due to an act or omission on its part or
due to any act or omission on the part of its representatives, employees and of any persons in
general for which Skechers is liable by law or in accordance with this Agreement.



Next to the repair costs, Skechers will have to pay ProLogis any compensation resulting from the
unavailability of the Premises due to an act or omission for which Skechers is liable pursuant to
the preceding paragraph or because Skechers has not vacated the Premises in due time. This
compensation will be the equivalent of the then valid Price due by Skechers for the period of
unavailability of the Premises, as determined between parties or by the expert.




17 Expropriation



In the event that the Premises, either in part or in their entirety, are expropriated, Skechers
will have no right of recourse against ProLogis. The rights which Skechers asserts against the
expropriating authority shall at not time affect the rights which ProLogis shall have against the
expropriating authority.




18 Visits to the Premises/ For Rent or For Sale



ProLogis and its agent and representatives are authorized to visit the Premises with a person
appointed by Skechers, whenever necessary, subject to prior notification (at least eight working
days) to Skechers.



During the six (6) months before the termination of the Agreement or in the event of any sale of
the Premises, ProLogis is entitled to fix the necessary advertising signs and announcements without
excessively hindering the activities of Skechers.




19 Terms of the Deed of Sale



Skechers explicitly states to be informed and that it is aware of and complies with the terms of
the Deed of sale dated June 6, 2001 between ProLogis and Services Promotion Initiatives en Provence
de Liège (SPI+) scrl, and Skechers undertakes, for itself, any of its entitled parties and
any of its successors and assigns, to comply conscientiously with the provisions of this Deed of
sale, if applicable, articles two (2), three (3), four (4), five (5), six (6), seven (7) and eight
(8) of this Deed of sale, in so far as these are or can be applicable to Skechers, and to ensure
that these stipulations are also complied with conscientiously by any third parties which may
acquire a right of lease, use or any other right to the Premises or the site.



Skechers shall indemnify and hold fully harmless ProLogis for any damage and/or costs which may
arise from a failure to comply with the aforementioned terms of the Deed of sale. ProLogis declares
that the Agreement is in compliance with articles 2 up to 8 of the Deed of Sale, insofar as
applicable.




 









 





The articles 2 up to 8 of the above Deed of Sale set forth the following :





L’affectation économique grevant le bien vendu




Article deux.- Le bien faisant l’objet de la présente vente est grevé d’une affectation
économique, celle-ci devant être considérée comme une condition essentielle de la cession
consentie par la société « Services Promotion Initiatives en Province de Liège ».




La notion d’affectation économique a été précisée dans le préambule.




L’interdiction de donner partiellement ou en totalité au bien, une autre affectation, est
absolue sauf ce qui est précisé ci-après.




L’obligation de construire sur le bien des bâtiments dans un délai déterminé.




Article trois.- L’acquéreur s’engage à édifier sur le bien faisant l’objet de la
présente convention dans un délai de deux ans un ensemble de bâtiments conformes au plan
d’implantation du dix-huit janvier deux mille un et approuvé par la S.P.I. Cet engagement
constitue une condition essentielle du présent acte de vente. Sans préjudice au droit pour la
S.P.I. d’exercer la faculté de rachat visée à l’article 6, la S.P.I. pourra, en cas
d’inexécution de cette obligation, considérer la vente comme résolue de plein droit, et sans
mise en demeure préalable. En cas de résolution de la vente, la S.P.I. n’est tenue qu’au
remboursement du prix tel que stipulé à l’article 1, sans aucune majoration, indemnité
quelconque ni intérêt. L’acquéreur sera tenu de remettre le bien dans l’état où il l’a reçu. La
S.P.I. ne devra aucune indemnité pour des améliorations ou plus-values apportées au bien par
l’acquéreur et sera libre de conserver le cas échéant, ces améliorations.




L’obligation d’exercer une activité économique déterminée




Article quatre.- L’acquéreur s’engage à exploiter dans l’immeuble à ériger sur le
terrain vendu, l’activité définie par les parties, de la manière suivante : construction de
halls, pour mise à disposition, par location ou vente, à des entreprises.




Elle devra être conforme à la description plus détaillée qui en a été donnée par l’acquéreur
dans sa lettre du dix-huit février deux mille dans la mesure où les termes de cette lettre ont
été expressément acceptés par le Bureau Exécutif de la S.P.I. en sa séance du dix mars deux
mille.




Cette activité devra être pleinement exercée dans le même délai de deux ans stipulé à l’article
3. L’acquéreur ou tout autre utilisateur du bien lui succédant est tenu de demander
l’autorisation préalable à la S.P.I. pour tout changement significatif de l’activité exercée
sur le bien vendu ou en cas de cessation totale ou partielle de cette activité. Cet engagement
constitue une obligation essentielle du contrat.




La S.P.I. peut, le cas échéant, autoriser l’exercice d’une activité nouvelle et/ou renoncer à
la sanction prévue par le contrat. Cette autorisation exceptionnelle et cette renonciation ne
se présument pas et doivent faire l’objet d’une décision expresse de la S.P.I.




Cession de la propriété ou de la jouissance du bien à un tiers




Article cinq.- L’acquéreur pourra céder tout ou partie de bien vendu, en faire apport,
le donner en location ou en transférer de toute autre manière la propriété, l’usage ou la
jouissance, avec l’accord préalable et écrit de la société « Services Promotion Initiatives en
Province de Liège » et sous la condition d’imposer au nouvel utilisateur du bien, le respect
intégral de la présente convention. Cet accord devra être donné dans un délai de 15 jours
ouvrables à dater de la demande faite par l’acquéreur. A défaut, la S.P.I.+ sera sensée avoir
donné son accord sur la demande. La S.P.I. refusera ou acceptera la cession de la propriété ou
de la jouissance en fonction des objectifs définis au préambule de la présente convention et
des objectifs généraux poursuivis par elle. La S.P.I. se réserve notamment le droit de
contrôler si l’activité prévue par le cessionnaire ou le locataire ou tout autre utilisateur
nouveau, ne risque pas de porter atteinte à la salubrité du parc industriel au sein duquel est
intégré le bien vendu et si cette activité s’intègre le cas échéant, dans le programme
d’implantation poursuivi sur ce site. Le contrat passé entre l’acquéreur et le nouvel
utilisateur du bien doit obligatoirement stipuler l’engagement du nouvel utilisateur au
bénéfice de la S.P.I. de respecter toutes les clauses de la présente convention, relatives à
l’affectation économique grevant le bien vendu (article 2), à l’obligation de construire les
bâtiments dans un délai déterminé (article 3), à l’obligation d’exercer l’activité économique
déterminée par la convention (article 4), à la cession de la propriété et
de la jouissance (article 5) et à la faculté de rachat (article 6). Ces clauses devront être
intégralement reproduites dans la convention. Une copie de celle-ci doit être soumise à la
S.P.I. sans délai, dès le jour de la signature. En cas de violation du présent article,
l’acquéreur initial reste solidairement tenu de toutes les obligations du contrat en cas de
manquement par le cessionnaire à ces obligations.




Faculté de rachat




Article six.- La société « Services Promotion Initiatives en Province de Liège » ou la
Région pourra, sur le pied de l’article 32 paragraphe 1 de la loi du 30 décembre 1970 sur
l’expansion économique, modifié en ce qui concerne la Région Wallonne par le décret du 15 mars
1990 publié au Moniteur Belge du 7 juin 1990, racheter le terrain et/ou le bâtiment au cas où
il ne respecte pas les autres conditions d’utilisation. Le rachat s’opérera au prix du marché
de l’immobilier. En aucun cas, ce prix ne peut dépasser celui qui est fixé par les Comités
d’Acquisition d’Immeubles. Toutefois, moyennant l’accord de la S.P.I., l’acquéreur pourra
revendre le bien, et dans ce cas, l’acte de revente devra reproduire les clauses visées aux
articles 2, 3, 4, 5 et 6.




La venderesse considérera comme exécutée l’activité économique telle que précisée à l’article 4
des présente, par la mise en œuvre de tous les moyens normaux et nécessaires ainsi que les
efforts de promotion auxquels s’engage de bonne foi l’acquéreur pour que la vente ou la
location, le leasing et la mise à disposition de l’immeuble décrit à l’article 3 intervienne
dans les meilleurs délais.




CONDITIONS Particulières




Articles sept.- Tout travail de nature à modifier le niveau du terrain faisant l’objet
de la présente vente ne pourra être effectué par l’acquéreur sans l’autorisation préalable de
la venderesse.




Article huit.- L’acquéreur s’engage à n’installer ou à ne laisser installer sur le bien
vendu que des enseignes ou panneaux publicitaires destinés à renseigner sa raison sociale, son
nom ou les produits fabriqués ou vendus par lui. L’installation de cette publicité sera soumise
à l’accord préalable de la venderesse. L’acquéreur s’engage à maintenir en état de parfaite
propreté les parties non bâties de la parcelle.




 









 




20 Environment and health



Skechers shall at all times use its best efforts to minimize the impact of its activities on the
environment and human health.



Skechers shall, both during the Agreement and afterwards, fully indemnify ProLogis and hold
ProLogis harmless for all damages and costs resulting from the release by Skechers of harmful
substances into the air, the water, the soil and the groundwater, or from any activity which is
harmful for the environment or human health, including but not limited to (i) the fees and expenses
for surveys or other studies, preventive or remedying measures and for monitoring programs, (ii)
the decrease of the value of the Site, (iii) the loss of benefit of the exploitation of the Site,
(iv) liabilities towards third parties and/or public authorities, (v) all penalties, interests,
proceedings and fees of technical, legal and financial experts.



Prior to the commencement of this Agreement, ProLogis has conducted a Phase I Environmental Site
Assessment, Industrial Park Hauts-Sarts-Milmort, ProLogis Belgium II Sprl ProLogis Belgium III, V,
VI Sprl, Avenue du Parc Industriel, 4041 Herstal-Milmort (Liège), Belgium (GEDAS, January 18, 2001,
project. number: 11/15/1844) and the Geotechnical Site Investigation (GEDAS, March 7, 2001, project
number : 11/15/1844 — revision B) on the Site, for its own account. The Assessment and the
Geotechnical site Investigation (together ‘the GEDAS report’)
have been appended to this Agreement as Appendix 6. ProLogis shall have established an
update of the GEDAS report (of both the Assessment and the Geotechnical site investigation) by
GEDAS which will be communicated to Skechers prior to the official delivery date of the Premises,
as referred to in Article 5, which will include drills on the Site and an examination of samples of
the soil and ground water of the Site evaluated on the basis of the Walloon standards for the
parameters for which such standards currently exist and on the basis of the Flemish standards for
the other parameters (the “Update report”). This Update report will be attached to this Agreement
as Appendix 7. The GEDAS report and the Update report represent a legally appropriate
survey and is regarded a sufficient basis to describe the status of the soil and ground water of
the Site, agreed by ProLogis and Skechers.



Prior to the termination of the Agreement, Skechers will, at its sole expense, order an accredited
expert to carry out an exploratory soil survey on the Site.



If the results of this exploratory soil survey indicate that there are concentrations of substances
in the soil and/or the groundwater of the Site exceeding the standards which apply on such date
and/or which give cause to further survey measures and/or soil decontamination, Skechers will have
these further surveys and soil decontamination carried out, for its own account.



Skechers will also compensate ProLogis for any damage which the latter may suffer as a result of
any soil and/or groundwater contamination exceeding the contamination ascertained in ‘the GEDAS
report’ and the Update report or as a result of the survey and remediation measures carried out by
Skechers for such contamination



Skechers will make a reasonable effort to ensure that the survey and remediation measures are
carried out prior to the termination of the Agreement and interfere as little as possible with the
use of the Site.




21 Various clauses





	 	21.1	 	This Agreement contains the
entire agreement of the parties
hereto with regard to the object
to which it refers and contains
everything the parties have
negotiated and agreed upon within
the framework of this Agreement.
	 
	 	 	 	No amendment or modification of this Agreement shall take effect unless it is in writing
and is executed by duly authorized representatives of the parties.
	 
	 	 	 	The Appendices to this Agreement form an integral part thereof and any reference to this
Agreement shall include a reference to the Appendices and vice versa.
	 
	 	 	 	It replaces and annuls any agreement, communication, offer, proposal, or correspondence,
oral or written, previously exchanged or concluded between the parties and referring to
the same object.
	 
	 	21.2	 	Notwithstanding any provision
contrary to the present
Agreement, neither party shall be
liable for a delay or failure to
fulfill its obligations under
this Agreement arising from any
cause beyond its reasonable
control or arising from strikes,
lockouts, work stoppages or other
collective labor disputes,
insofar that the party invoking
the force majeure informs the
other party as soon as reasonable
possible of the occurrence and
the estimated duration and the
termination thereof, as well as
an accurate description of the
causes thereof. In case the
situation of force majeure has a
duration of more than two
(2) months, the other party is
entitled to terminate this
Agreement in accordance with the
terms of this Agreement.
	 
	 	21.3	 	The parties acknowledge that they
have required all notices and
legal proceedings provided for
under the present Agreement, or
related hereto, to be drawn up in
the English language, to the
extent permitted by rules of
public policy relating directly
or indirectly to these
proceedings.
	 
	 	21.4	 	If one or more of the provisions
of this Agreement is declared to
be invalid, illegal or
unenforceable in any respect
under the applicable law, the
validity, legality and
enforceability of the remaining
provisions contained herein shall
not in any way be affected. In
the case whereby such invalid,
illegal or unenforceable clause
affects the entire nature of this
Agreement, each of the parties
shall use its best efforts to
immediately and in good faith
negotiate a legally valid
replacement provision.
	 
	 	21.5	 	No failure or delay of a party to
exercise any right or remedy
under this Agreement shall be
considered a final waiver
thereof, nor shall any single or
partial exercise of any right or
remedy preclude any other or
further exercise thereof. The
rights and remedies provided in
this Agreement are cumulative and
not exclusive of any rights or
remedies provided by law.
	 
	 	21.6	 	If this Agreement is to be
registered, Skechers shall do so
as soon as reasonably possible. A
proof of registration is to be
submitted to ProLogis. The costs
and possible penalties resulting
thereof are to be borne solely by
Skechers.
	 
	 	21.7	 	The parties acknowledge that they
have required the present
Agreement to be drawn up in the
French and the English language,
both with equal value. The French
version will be used for
registration purposes. The
English version will be attached
to the French version as
Appendix 8.








 









 










22 Choice of Domicile



Any notifications and correspondence which must be addressed to the other party, may be served in a
legally valid manner at the following addresses :





for ProLogis : ProLogis Belgium III sprl, Park Hill, Building A,
3rd Floor, Jan Emiel Mommaertslaan 18, B-1831 Diegem;




for Skechers : Skechers EDC, 159 Parc Industriel Hauts-Sarts, Zone 3, Avenue du
Parc Industriel, 4041 Herstal.


Except if agreed otherwise, any change of address can only take place within Belgium. Any change of
address must be notified by registered letter to the other party, the new address being considered
the official address for purposes of this Agreement from the first business day following the
sending of such notice letter.



Notwithstanding the preceding, all notifications between Skechers and ProLogis directly related to
the Agreement shall be in the form of registered letters.




23 Competent Courts



In the event of any dispute relating to the conclusion, validity, the implementation or the
interpretation of this Agreement, the courts of Liège will have sole and exclusive jurisdiction.




24 Applicable law



This Agreement shall be governed by and construed in accordance with Belgian law.



25 Bank Guarantee



By way of security for the due performance by Skechers of its obligations under the Availability
Agreement, Skechers hereby gives to ProLogis a bank guarantee at first demand issued by a first
class European bank having an office in Belgium and doing business in Belgium for an amount equal
to the Price as defined in the Availability Agreement for a period of three (3) months plus service
charges and plus VAT as determined and adjusted in accordance with the terms and conditions of this
Agreement.



When the Price in accordance with Article 4 is modified, the amount of the bank guarantee will have
to be adjusted in line with the annual adjustment of the Price payments every year. It will have to
apply to the entire duration of the Agreement plus six months.



This bank guarantee shall only be released six (6) months after the expiry or termination of the
Availability Agreement, including its extensions.



The bank guarantee shall be part of this Agreement and shall be attached to it as Appendix
9.



In the absence of the bank guarantee as at Commencement Date at the latest, this Agreement will be
null and void ipso iure without any further notice being required or any legal proceedings to be
started. If ProLogis should decide to refer to the lack of the bank guarantee and thereby invokes
the nullity of the Agreement, all Price payments, charges and any other payments due to ProLogis
under this Agreement will nevertheless remain in force as a compensation due to the unavailability
of the Premises, without prejudice to any other compensation ProLogis may claim.



Next to the bank guarantee, ProLogis obtained from Skechers USA Inc., a company under the laws of
the State of Delaware having its principal place of business at 228 Manhattan Beach Blvd, Manhattan
Beach, CA 90266, USA, a letter, attached hereto as Appendix 10, pursuant to which the
latter declares in favor of ProLogis, including the successors in title of ProLogis, the financial
soundness and the complete observance by Skechers of its obligations under this Agreement. This
letter is essential for ProLogis for entering into this Agreement.



In the absence of the letter at signing date, this letter will be provided within two weeks after
signing this Agreement.




*




* *



 








 




This Agreement was made out in quadruplicate in Milmort



Each party acknowledges to have received its original copy.



May 20th 2008




	 	 	 	 	 

	/s/ Gerrit Jan Meerkerk
 

For ProLogis Belgium III Sprl,

	 	/s/ David Weinberg
 

For Skechers,
	 	 
	Gerrit Jan Meerkerk

	 	David Weinberg	 	 






The following Appendices are part of this Agreement:




	 	 	 	 	 	 	 

	Appendices:

	 	 	1.	 	 	Situation Plan (02/06 6102 07-04-2008);
	 

	 	 	2.	 	 	Building permit Application (E16256);
	 

	 	 	3.	 	 	Plans and Specifications DC II / Outline specifications
(May 2008);
	 

	 	 	4.	 	 	List of services, supplies and site maintenance (09-Oct.-2007);
	 

	 	 	5.	 	 	n/a
	 

	 	 	6.	 	 	Gedas report;
	 

	 	 	7.	 	 	n/a
	 

	 	 	8.	 	 	n/a
	 

	 	 	9.	 	 	n/a
	 

	 	 	10.	 	 	n/a







 











 





Appendix 1




Situation Plan



 









 










 









 









Appendix 2




Building Permit Application





 









 





Walloon Region




	 	 	 

	Liège Directorate 1

	 	Liège — 7 July 2008
	Town Planning Division
	 	 
	Rue Montagne Sainte-Walburge, 2
	 	 
	4000 LIÈGE
	 	 
	Belgium
	 	 
	 
	 	 
	Tel. +32 (0)4/224.54.11.

	 	REGISTERED LETTER
	Fax +32 (0)4/224.54.66.

	 	S.P.R.L. PROLOGIS Belgium III
	 

	 	J.E. Mommaerstlaan, 18
	 

	 	1831 DIEGEM






Your Ref.: /

Our Ref.: E16256/BM/MRM

Encl.: 1 set of plans + notification




APPENDIX 12 — FORM G




PUBLIC INSTITUTIONS OR

STATE APPROVED ACTION AND WORKS 




DECISION TO GRANT PLANNING PERMISSION


The Delegated Officer,



Considering the Walloon Code of Law for Town and Country Planning, and Heritage;



Considering the decree dated 11 March 1999 relating to environmental permission;



Considering Volume 1 of the Code of Environmental Law relating to the assessment of the impact of
projects upon the environment;



Whereas the private limited liability partnership S.P.R.L. PROLOGIS Belgium III has submitted an
application for planning permission relating to a property located in HERSTAL (Liers), Avenue du
Parc Industriel,

recorded in the land registry under no. 450 e2, g2,

and the purpose of which is the construction of an industrial hall



Whereas the full planning permission application was filed with the Delegated Officer of the
Directorate of LIÈGE 1 of the General Directorate for Town and Country Planning, Housing and
Heritage. The application was filed by post and received on 15.05.2008;




Direction générale de l’Aménagement du territoire, du Logement et du Patrimoine

General Directorate for Town and Country Planning, Housing and Heritage

Main address: Rue des Brigades d’Irlande 1, B-5100 Namur • Tel.: 081 33 21 11 • Fax: 081
33 21 10

www.wallonie.be • Freephone no. 0800 11 901 (general information)




 









 





			
	Our Ref.: E16256/BM/MRM
	 	2/3






Whereas the property in question is recorded in the LIÈGE area plan approved by the
Walloon Region Executive Decree (A.E.R.W.) dated 26.11.1987 for trade & industry activity and which
has continued to apply to the aforementioned property;



Whereas the project falls within the scope stipulated in Article 1, item 5 of the decree dated 11
March 2004 relating to infrastructure accommodating business activities;



Whereas municipal building regulations approved by the Executive Decree dated 05.09.1980 are in
force throughout the municipal territory where the property is located;



Whereas the planning permission application comprises an environmental impact assessment notice;




Whereas the services stipulated below have been consulted on the following grounds:





	—	 	the Promotion Initiatives Service SPI+, whose opinion requested on 21.05.2008 and issued on
28.05.2008 is favourable;






	 	—	 	Whereas the project is located within an area of the SPI+;






	—	 	the I.I.L.E., whose opinion requested on 21.05.2008 and issued on 16.06.2008 is favourable
subject to conditions;






	 	—	 	on public safety grounds;




Whereas the opinion of the Municipal Council was requested on 23.05.2008 and issued on 10.06.2008;
and that its opinion is favourable subject to conditions;




     Taking into consideration the plans registered by my department on 28.03.2008;



     Taking into consideration the project consists of:




	—	 	the construction of an industrial (storage) hall of 21,275 m2 as an extension to an
existing hall;





     Whereas the planning permission application does not relate to any project featuring on the
list decreed by the Government and which, given its nature, its dimensions or its location, is
subject to an environmental impact study, taking into account the selection criteria stipulated in
Article D.66 of the Code of Environmental Law;



     Whereas the planning permission application is accompanied of an environmental impact
assessment notice, and that this notice is complete and appropriately identifies, describes and
assesses the direct and indirect impact, and this in the short, medium and long term, of the
project layout and implementation upon humans, the fauna and flora; the soil, the water, the air,
the climate and the landscape; real estate and cultural heritage; the interaction between the
factors stipulated above;



     Whereas the planning permission application is not accompanied of an impact study, that the
authority is of the opinion that in view of the aforementioned notice and of the plans, that taking
into account the relevant selection criteria stipulated in Article D.66, section 2, the project is
not likely to have any significant impact upon the environment;



     Whereas judging from the plans and the photographic report included in the case file, the
impact of the project upon the landscape is insignificant;



     Whereas the planned installation does not compromise the general intended use of the area, nor
of its architectural nature;



 









 





			
	Our Ref.: E16256/BM/MRM
	 	2/3





And consequently,




DECIDES




     Article 1: The planning permission applied for by the private limited liability
partnership S.P.R.L. PROLOGIS Belgium III is granted subject to the following conditions:


— To comply with the decision of the I.I.L.E. enclosed in the appendix;



— To request an inventory of the pavement, the alignment and the level as well as information on
the layout of the structures at least 60 days before the estimated date of the start of the works,
using the enclosed form. The applicant should take note of the municipal rules and regulations
concerning the information on the layout of the structures in accordance with Article 137 of the
C.W.A.T.U.P. and the regulations concerning municipal fees for the information on the layout of the
structures;



— To provide ventilation for social premises in accordance with the standards in force;


— To install an inspection chamber or an inspection hole at each junction and change of direction
in the drainage pipework;



— The access routes to the site must to be installed using a hydrocarbon road covering that makes
it possible to differentiate between the public area and the private area;



— The pavement and the gutter system must not under any circumstances be removed or modified;


— The soil originating from the terracing must be disposed of at an inert waste sorting centre. It
must not under any circumstances be used to backfill the land;


     Article 2. — This decision is issued to the applicant and to the Municipal Council of
HERSTAL;



     Article 3. — The holder of the planning permission must notify the Municipal Council
and the Delegated Officer, and this by registered letter, of the start of the works and of the
permitted processes, at least eight days before starting these works or processes.



     Article 4. — This planning permission does not dispense the holder from applying for
the compulsory authorisations or permits imposed by other legislation or regulations.



Delegated Officer




     André DELECOUR



Director




Your contact: Bernadette MOTTET — Architect







 









 








			
	Our Ref.: E16256/BM/MRM
	 	2/3





EXTRACTS FROM THE WALLOON CODE OF LAW FOR TOWN AND COUNTRY PLANNING, AND HERITAGE



1) MEANS OF APPEAL



Art. 127. Section 6. The applicant and the municipal council can lodge an appeal to the Walloon
Government within thirty days from receipt of the decision from the delegated officer or from
expiry of the deadline stipulated in Article 127, section 4, paragraph 2.



2) DISPLAY OF THE PLANNING PERMISSION



Art. 134. A notice stating that the planning permission has been issued must be displayed on the
land facing the highway and legible from the latter, and if this relates to works, prior to the
start of the site and throughout the entire period of the works, or in other cases, starting from
the preparatory work, before the process or processes have been executed and throughout the entire
period of their execution. Throughout this period, the planning permission and the attached case
file or a certified true copy of these documents issued by the municipality or the delegated
officer must at all times be available to the bodies referred to in Article 156 at the location
where the works are executed and the processes are performed.



3) EXPIRY OF THE PLANNING PERMISSION



Art. 87. Section 1. The planning permission expires if, within two years from the date of issue of
the planning permission, the beneficiary has not started the works in any significant way.
Section 2. The planning permission expires for the remaining section of the works, if the latter
have not been completed within five years from the date of its issue, except if the works are
authorised to be executed in phases. In this case, the planning permission determines the start of
the deadline of expiry for each phase other than the first.

The planning permission expires ipso jure.



4) EXTENSION OF THE PERMISSION



Art. 87. Section 3. Upon application by the beneficiary of the planning permission, the latter is
extended for a period of one year. This application must be lodged thirty days prior to the expiry
deadline stipulated in Article 87, Section 1.

The extension is granted by the Government or the delegated officer.



5) CERTIFICATION OF CONFORMITY OF THE WORKS



Art. 139. Section 1. The beneficiary of the planning permission must have the condition of the
property inspected for compliance with the planning permission, and this at the latest within six
months from expiry of the deadline stipulated in Article 87, Section 2, or prior to any assignment.
In the case of assignment more than three years following an inspection, the assignor must ensure
that the property concerned is inspected for compliance with the planning permission prior to the
deed of assignment. However, an inspection is compulsory prior to any assignment following a
provisional inspection.




     Section 2. The inspection must be performed by an authorised certification body, selected by
the beneficiary of the planning permission or the assignor. If the municipality has not received
the town planning certificate of conformity or the document containing the refusal of a town
planning certificate of conformity at the end of the six months following expiry of the deadline
stipulated in Article 87, Section 2, the Municipal Council or the body appointed by the Municipal
Council will automatically commission an authorised certification body to proceed with the
inspection.


In any case, the cost of the inspection will be borne by the beneficiary of the planning permission
or by the assignor.



6) SPECIAL PROVISIONS APPLICABLE TO GROUP STRUCTURES



Art. 126. When planning permission authorises several structures and if these structures imply the
creation of infrastructure and of communal equipment, including water treatment equipment, the
planning permission can make these transformations subject to, and this free of charge or against
payment, to division, the creation of a long lease or rights to surface area, or a lease of more
than nine years, applicable to all or part of these properties:



1. A certificate issued in accordance with the terms and conditions stipulated in Article 95,
paragraph 1;


2. A deed of division drawn up by the notary stipulating the town planning guidelines for all of
the structures and the management methods of the communal areas.


The planning permission must mention any possible phases of execution of the structures and state
the start of every phase.





N.B. LAYOUT



Please note Article 137 of the said Code of Law and therefore the necessity to make contact with
the
municipality concerned.





 









 








	 	 	 

	Our Ref.: E16256/BM/MRM

	 	2/3





Article 137. The planning permission can determine the order in which the works have to be
executed and the deadline within which the terms and conditions of the planning permission have to
be met.
The start of the works relating to the new structures, and this including the extended floor
occupation of existing structures, will be subject to an on-site statement of the layout performed
by the Municipal Council.



This statement will be recorded in an official report.





 











 





Appendix 3




Plans and Specifications DC II/

Outline Specifications



 









 










Outline Specification

SKECHERS DC 2 Milmort



Distribution Center/Warehouse:





	Ø	 	Minimum clear height of 10.8 m
	 
	Ø	 	Steel building frame or concrete building frame with wooden laminated beams design
reference-period 50 years.
	 
	Ø	 	General column bay spacing 22m x 12 m
	 
	Ø	 	2 Overhead doors, 4x 4,5 meter
	 
	Ø	 	Certified ESFR K14 roof-net sprinkler system in warehouse
	 
	Ø	 	Loading docks 28 nos. electrically operated doors and levelers (6t dynamic load, l0t
static load), equipped with weather shelters and buffers, doors with vision panel.
	 
	Ø	 	Loading pit (concrete) in front
	 
	Ø	 	3 no level access doors per fire compartment
	 
	Ø	 	Minimum floor loading capacity of 5,000 kg/m2, and a rack leg load of 6000 kg.
	 
	Ø	 	Average floor flatness of Zeile 4 (DIN 18202) — 5 mm under 2m screed
	 
	Ø	 	Heating central gas heating to 18°C with outside temperature -10°C
	 
	Ø	 	Abrasion resistance top floor according class MS 25, Dutch code NEN 2743.
	 
	Ø	 	Minimum lighting level 150 Lux; average lighting level 200 Lux, measured on 1
meter above floor before the installation of racks.
	 
	Ø	 	Fire alarm and evacuation alarm, fire hoses, emergency lighting as per regulations.
	 
	Ø	 	Insulation value of 2.5 for the roof and façade (Rc = 2.5 m2K/W)
	 
	Ø	 	Roof rainwater discharge through a pluvia system
	 
	Ø	 	Insulated concrete panel plinth (height 2,25m) at loading
docks (front façade) and at
side and back facades (height 3,75m)
	 
	Ø	 	Maximum air leakage of the warehouse shell: 3 m3/h/m2
	 
	Ø	 	Concrete wheel guides to protect loading docks
	 
	Ø	 	Crash protection poles for all dock doors, level access doors and sliding fire doors.
Crash protection for all vertical pipes and stairs in the warehouse.
	 
	Ø	 	Per unit battery charge points with battery charge electrical connection point:






	 	-	 	5 outlets 3*400V/32A (excluding equipment)
	 
	 	-	 	5 outlets 240V/16A (excluding equipment)






	Ø	 	Windows in front on mezzanine level, see drawing architect.
	 
	Ø	 	3 fire rf 1/2 hr, doors 3.8 x 4.85 m in fire wall, according to local regulation.
	 
	Ø	 	Mezzanine floor above loading docks, depth 9.45 meter deep and a floor load
capacity of 400 kg/m2.
	 
	Ø	 	Transformer and switch room by DC1 existing building.
	 
	Ø	 	Water supply sprinkler by existing installation.
	 
	Ø	 	Sprinkler pump and room according to regulations
	 
	Ø	 	Restroom/ canteen on mezzanine.
	 
	Ø	 	A grey water system to be installed for re-use of rain water for flushing toilets and
irrigation
	 
	Ø	 	Employee entrance in side wall under mezzanine
	 
	Ø	 	Guard house between truck entrance and truck exit including new entrance trucks
see drawing architect.
	 
	Ø	 	Fire alarm and evacuation alarm, fire hoses, emergency lighting as per regulations.





 









 










Site/Exterior





	Ø	 	2 m high security fencing and manually operating sliding gates.
	 
	Ø	 	Loading pit is suitable for incoming and outgoing standard European trucks
according to EVO advice
	 
	Ø	 	Landscaping as required
	 
	Ø	 	Concrete brickwork paving with heavy-duty 100 mm in truck zone, 80 mm in
passenger vehicle areas.
	 
	Ø	 	Ample car parking and truck on site (in front of building, see drawing architect)
	 
	Ø	 	The front of the façade of the truck court has an average lighting to 10 Lux
	 
	Ø	 	Outside lighting: Roads and parking               20 Lux






Loading area and entrance   75 Lux



@ProLogis,
May 2008




2









 








Appendix 4




List of Services, Supplies and

Site Maintenance



 









 





List of Supplies and Services for the rented property




	 	 	 
	Component	 	Frequency
	Doors
	 	 
	 
	 	 
	* Inspection and maintenance of dock equipment (overhead doors, levellers, shelters)
	 	1x p.a.
	* Maintenance of exterior door and window furniture
	 	 
	 
	 	 
	Grounds
	 	 
	 
	 	 
	* Maintenance of paved areas
	 	1x p.a.
	* Clean channels, pump sumps, Inspection chambers and outlets, flush through foul water sewer
	 	1x p.a.

	and clean settlement tank
	 	2x p.a.
	including: removal of waste in an environmentally sound manner
	 	 
	*
Preventative maintenance of electric sliding gates and turnstiles on site
	 	1x p.a.
	* Maintenance of green areas
	 	N/A
	* Sweep whole site
	 	N/A
	* Barriers/outdoor lighting
	 	N/A
	 
	 	 
	External walls
	 	 
	 
	 	 
	* Clean
external walls and claddings of warehouse, offices + guardhouse
	 	1x/3. years
	* Clean
external walls and claddings of offices 1x p.a. after first cleaning
	 	1x p.a.
	* Clean glazing
	 	N/A
	 
	 	 
	Paintwork
	 	 
	 
	 	 
	* Touch up
interior paintwork
	 	1x p.a.
	 
	 	 
	Roof
surfaces
	 	 
	 
	 	 
	* Check roof
safeties
	 	N/A
	* Clean roof surfaces
	 	2x p.a.
	* inspect roof (payable by owner)
	 	N/A
	 
	 	 
	General structural
	 	 
	 
	 	 
	* Minor
structural maintenance, split between several visits per year (max. 3)
	 	1x p.a.
	* Preventative maintenance of fire shutters
	 	1x p.a.
	* Preventative maintenance of (interior) sun shading
	 	1x p.a.
	 
	 	 
	Lift systems
	 	 
	 
	 	 
	* Regular maintenance of lift systems in accordance with regulations
	 	N/A
	* Testing of
lift systems in accordance With regulations
	 	N/A
	 
	 	 
	Building maintenance systems
	 	 
	 
	* Regular maintenance of building maintenance systems in accordance with regulations
	 	N/A
	* Testing of building maintenance systems in accordance with regulations
	 	N/A
	 
	 	 
	Plumbing
and HVAC systems
	 	 
	 
	 	 
	* Preventative maintenance of plumbing and HVAC systems
	 	N/A
	System components:
	 	 
	* Boiler systems
	 	 
	* Switching cabinets and control equipment
	 	 
	* Air conditioning systems
	 	 
	* Gas-fired air heaters
	 	 
	* Cooling systems (split systems and/or refrigeration equipment)
	 	 
	* Tempering valves, motorised valves, valves, filling and drain cocks
	 	 
	* Circulating pumps, pressure expansion tanks, non-return valves, safety devices
	 	 
	* Air humidifiers
	 	 
	 
	 	 
	* Jobs to be performed:
	 	 
	* Inspection
and maintenance of equipment installed
	 	1x p.a.
	* Check
filters (cean, replace)
	 	1x p.a.
	* STEK / F gases decree inspections of refrigeration equipment and airco
	 	2x p.a.
	* Periodic inspection of heating equipment under Environmental Management Act
	 	1x/2 years
	 
	 	 
	* including consumables such as air filters (1x p.a.), drive belts, lubricants, cleaning agents, paint, Indicator lamps,
screw fuses up to 25A, ionisation / ignition pins
	 	N/A
	* Fix faults
	 	 
	* Use lifting platform
	 	N/A






 









 





List of Supplies and Services for the rented property




	 	 	 
	Components	 	Frequency
	Sanitary installations
	 	 
	 
	* Preventative maintenance of sanitary installations, installation components:
	 	1x p.a.
	* Toilet, basin, shower, utility sink and urinal combinations
	 	 
	* Fire hose reels
	 	 
	* Electric water heaters, gas water heater
	 	 
	* Wash troughs
	 	 
	* Fire hydrant systems
	 	 
	* Eye showers
	 	 
	* Pantries
	 	 
	* Rainwater outlet and emergency, overflow, outlets
	 	 
	* Duborain systems
	 	 
	* Fire hydrants including flow meters
	 	 
	 
	 	 
	Electrical systems
	 	 
	 
	 	 
	* Preventative maintenance of electrical systems with a hour response time
	 	1x p.a.
	System components:
	 	 
	* Electrical system
	 	 
	* Emergency lighting system
	 	 
	* Lightning protection
	 	 
	* Barrier system
	 	 
	* Intercom system
	 	 
	* Evacuation alarm system
	 	 
	* Surcharge for reducing response time to 4 hours
	 	All year round
	 
	 	 
	* Thermographic Inspection of electrical system
	 	1x/3 years
	* Replace fluorescent tubes in racking warehouse
	 	1x/8 years
	* Replace fluorescent tubes in other warehouse locations
	 	1x/5 years
	*
Systems/equipment installed by tenant, e.g. security systems,
	 	N/A
	access
control systems, Internal turnstiles, battery chargers, wrapping machines,
	 	N/A
	additional compressors, equipment in ESD room, etc.
	 	N/A
	 
	 	 
	Sprinkler system
	 	 
	 
	 	 
	* Preventative maintenance of sprinkler system
	 	1x p.a.
	* Test sprinkler system on fortnightly basis as per regulations
	 	26x p.a.
	* Replace gaskets in alarm valves
	 	1x/3 years
	* Preventative maintenance of sprinkler control panel
	 	1xp.a.
	* Replace
batteries in sprinkler control panel
	 	1x/3 years
	* Preventative maintenance of sprinkler pump set
	 	1x p.a.
	* Replace oil and filters on sprinkler pump set
	 	1x p.a.
	* Replace gaskets, thermostat etc.
	 	1x/2 years
	* Replace hoses and V belts
	 	1x/6 years
	* Major overhaul of pump set
	 	1x/12 years
	* Check condition of clean water tank
	 	1x/15 years
	* Inspection of sprinkler system by inspection bureau
	 	2x p.a.
	* Preventative maintenance of fire doors
	 	1x p.a.
	* Preventative maintenance of smoke vents
	 	1x p.a.
	 
	 	 
	Leglonella
	 	 
	 
	 	 
	* Produce leglonella control plan
	 	N/A
	* Perform checks detailed in legionella control plan
	 	N/A
	 
	 	 
	Environment
	 	 
	 
	* Take air and/or contact samples for checking indoor environment
	 	excluded
	 
	 	 
	General
	 	 
	 
	 	 
	* Gas
	 	 
	* Water
	 	 
	* Electricity
	 	 
	* Waste removal
	 	 
	* Pest control
	 	 
	* Telephone
	 	 








 




			
	*	 	Component if applicable; specific in-house components may be added.
	 
	*	 	Final frequency to be set in line with use and business process.
	 
	*	 	Service level may be extended by mutual agreement (based on Article 16 of the General Terms and
Conditions)





Date: 9
October 2007



 











 





Lease Prologis DC II




Appendix 6:




Gedas Report




 









 





	 	 	 

	 

	 	GEDAS NV
	 

	 	Clara Snellingsstraat 27
	 

	 	2100 ANTWERPEN-DEURNE
	 

	 	Tel 03 360 83 00
	 

	 	Fax 03 360 83 01
	ProLogis BV

	 	E-mail: info@gedas.be
	Capronilaan 25-27
	 	 
	1119 NP Schipol-Rijk
	 	 
	 
	 	 
	The Netherlands
	 	 






	 	 	 

	 

	 	Deume,

23th
September 2002
	 
	 	 
	 

	 	Contact:

kpeperstraete@gedas.be

mclerinx@gedas.be
	 
	 	 
	Project:

Phase I Environmental Site Assessment

ProLogis Belgium II Sprl

Avenue du parc industriel

Industrial Park Hauts-Sarts-Milmort

	 	Our Ref.:

11/15/002415


Direct line:

0032/3/3608395
	 
	 	 
	Final Report:

Update

Phase I Environmental Site Assessment

	 	Direct fax:
 0032/3/3608394






Client:

ProLogis BV








ISO 9001 gecertificeerd voor:

Adviesvertening, studie en ontwerp van gebouwen, infrastructuur, milieu en ruimtelijke ordening



 

 

 









 





CONTENT




	 	 	 	 	 
	 	 	Page	 
	1 INTRODUCTION
	 	 	5	 
	 
	 	 	 	 
	1.1 Background — Purpose of the Report
	 	 	5	 
	1.2 Scope of Work/Methodology
	 	 	5	 
	1.3 Planned Land Use of the Site
	 	 	6	 
	1.4 Limitations of Investigation/Disclaimer
	 	 	7	 
	 
	 	 	 	 
	2 PROPERTY DESCRIPTION AND ENVIRONMENTAL SETTING
	 	 	8	 
	 
	 	 	 	 
	2.1 The Property
	 	 	8	 
	2.1.1 Property Description and Location
	 	 	8	 
	2.1.2 Current Property Use / Site Operations
	 	 	10	 
	2.1.3 Previous Property Use
	 	 	14	 
	2.1.4 Summary of Property History
	 	 	15	 
	2.2 Environmental Setting
	 	 	16	 
	2.2.1 Geology 
	 	 	16	 
	2.2.2 Hydrogeology
	 	 	16	 
	2.2.3 Hydrology
	 	 	17	 
	2.2.4 Topography
	 	 	17	 
	2.2.5 Previous Investigations
	 	 	17	 
	2.2.6 Environmental Sensitivity
	 	 	18	 
	2.2.7 Planning Applications
	 	 	19	 
	2.2.8 Current Surrounding Uses
	 	 	19	 
	2.2.9 Previous Surrounding Uses
	 	 	20	 
	2.2.10 Statement of Property Sensitivity
	 	 	20	 
	2.2.11 Site Access and Traffic
	 	 	21	 
	2.2.12 Utilities
	 	 	21	 
	 
	 	 	 	 
	3 REGULATORY / GOVERNMENTAL AGENCY INQUIRIES
	 	 	22	 
	 
	 	 	 	 
	3.1 Environmental Law
	 	 	22	 
	3.1.1 Environmental impact assessment
	 	 	22	 
	3.1.2 Admission to environmental information
	 	 	23	 
	3.2 Environmental Law Concerning Specific Environmental Sectors
	 	 	23	 
	3.2.1 Exploitation of dangerous or unhealthy activities
	 	 	24	 
	3.2.2 Protection of the surface water
	 	 	24	 
	3.2.3 Protection and exploitation of groundwater and drinking water
	 	 	24	 
	3.2.4 Protection of air
	 	 	24	 
	3.2.5 Noise abatement
	 	 	25	 
	3.2.6 Soil protection
	 	 	25	 
	3.3 Environmental Management System
	 	 	25	 
	3.4 Sitescope Report
	 	 	26	 
	3.5 Sitefile Directory
	 	 	26	 
	 
	 	 	 	 
	4 RESULTS OF WALK-OVER INSPECTION
	 	 	27	 
	 
	 	 	 	 
	5 ENVIRONMENTAL RISK ASSESSMENT
	 	 	28	 






			
	 	 	 
	Date:

23th September 2002
	 	Page:
2/44










 









 








	 	 	 	Page	 

	6 CONCLUSIONS AND RECOMMENDATIONS
	 	 	29	 






			
	 	 	 
	Date:
 23th September 2002
	 	Page:
3/44






 









 





APPENDICES




	 	 	 

	1.

	 	Site Photographs
	1.1.

	 	Site photograph
	1.2.

	 	Aerial photograph
	 
	 	 
	2.

	 	Plans and Charts
	2.1

	 	Location site
	2.2

	 	Location borings
	2.3

	 	Location current and future buildings
	2.4

	 	Measurement plan
	2.5

	 	Location photographs
	2.6

	 	Location heating equipments
	 
	 	 
	3.

	 	Documents
	3.1.

	 	Cadastral map
	3.2.

	 	Soil investigation
	3.3.

	 	Groundwaterdata
	3.4.

	 	Industrial zoning
	3.5.

	 	Building permit
	3.6.

	 	Reaction of municipality of Herstal
	3.7.

	 	Correspondence with the archeological
authorities
	 
	 	 
	4.

	 	Environmental Report Tick List






			
	 	 	 
	Date:
23th September 2002
	 	Page:
 4/44











 









 











1 Introduction




1.1 Background — Purpose of the Report



GEDAS, member of the ARCADIS-group, was commissioned by ProLogis on behalf of Prologis
Belgium II S.p.r.1. (“ProLogis”) on August 15, 2002 to perform an update of a Phase I
Environmental Site Assessment (Phase I ESA) of a Site in Liège,
located near the Avenue du Parc
Industriel, 4041 Herstal-Milmort (Liège), Belgium (“the Site”).



The
contract is based on the ARCADIS proposal 2002.M5662 from August 14, 2002.



Representative photographs of the site / site inspection findings are attached in appendix
1; an overview map is shown in appendix 2.1.



Although no soil investigation is included in a Phase I Site Assessment, based on the ASTM
practice, an investigation has been conducted in August 2002 and is added in appendix 3 (3.2.).




1.2 Scope of Work/Methodology



ARCADIS GEDAS already performed a Phase I Environmental Site Assessment of the site located
near the Avenue du Parc Industriel, 4041 Herstal-Milmort in October-November 2000. This assessment
did not identify any non-compliances with the environmental legislation. No further investigation
was required by the environmental authorities.



This above described assessment was updated. The update was carried out to define the present
environmental condition of the site and to identify potential sources of environmental
liabilities.



The main objectives for this update are to acquire an understanding of any changes in the current
situation compared with 2000 and liabilities with regard to:





	 	•	 	actual and previous use/site history;
	 
	 	•	 	soil and groundwater;





			
	 	 	 
	Date:
23th September 2002
	 	Page:
 5/44






 









 






	 	•	 	general environmental setting;
	 
	 	•	 	surrounding land use and potential impacts on the site;
	 
	 	•	 	legal requirements, permits;





The Phase
I ESA is based upon the following activities:





	•	 	Record review: review of available information related to the former and present uses of
the location and adjacent properties.
	 
	•	 	Site reconnaissance: a visit to the property to investigate the Site and surrounding
properties.
	 
	•	 	Interviews with current owners and with the government
	 
	•	 	Preparation of a written Phase I Environmental Site Assessment report, with a summary of
GEDAS’s conclusions and recommendations.





1.3 Planned Land Use of the Site



In 2000 the investigated site (app. 15.5 ha) was free of any construction and was used as
arable ground (mainly for cereals).



In 2001 the land was divided in 2 pieces (Lot I and Lot II) with each a surface of app. 8 ha. On
one of these parcels (Lot I) a building (Lot I, Phase I) has been constructed. ProLogis plans to
rent out this new constructed building. Therefore the investigation (Phase I ESA and limited soil
investigation), only considers this part of the parcel with the building on.



Extensions to the buildings are foreseen in the near future. A second part of this building will
be constructed in the future years (Lot I, Phase II) (cf. appendix 2).



The existing buildings and planned buildings are shown in appendix 2.3. The logistics hall and the
office were at the time of site inspection not put into use(22/08/2002).




			
	 	 	 
	Date:
23th September 2002
	 	Page:
6/44






 









 





1.4 Limitations of Investigation/Disclaimer



The Phase I Environmental Site Assessment (ESA) was performed by GEDAS in conformance with the
scope and limitations of the American Society of Testing Materials (ASTM) standard practice for
Phase I Environmental Site Assessments (E 1527-00) and the Master Services Agreement for consulting
with ProLogis European properties Fund, ProLogis Trust, ProLogis B.V. or any of its European
affiliates and subsidiaries, agreed and accepted on 4 November 1999.



The Phase I ESA comprised a site visit on August 22, 2002. The site inspection was conducted by
Mr. Herwig Teughels and Mr. Kristof Peperstraete. The desk study was performed by Ms. Marleen
Clerinx. The desk study comprised a limited review of existing
documentation as well as confirmation of regulatory compliance from provided/presented permits or revision protocols and
the interpretation of information on the environmental setting of the area in wich the site is
located.



The results, findings, conclusions, and recommendations provided in this Phase I Environmental
Site Assessment report are based on the conditions that were observed during the Site inspection,
the review of past occupancy history of the location and information asked for by several
authorities provided.




			
	 	 	 
	Date:
23th September 2002
	 	Page:
7/44






 









 





2 Property Description and Environmental Setting




2.1 The Property




2.1.1 Property Description and Location



The Site is located in an industrial zone (cf. appendix 3, 3.4.) in Herstal-Milmort (“Parc
d’activités économiques de Hauts-Sarts”), app. 6 km northeast of the city centre of Liège, along
the E313 highway Liège-Hasselt (Exit 34) and the A601 (see Site
Map, appendix 2).  
The nearest houses are situated at a distance of approximately 0,5 km at the northeastern site of the
Site. Public transport facilities are present.



The surrounding streets are well maintained and new streets are under construction in other parts
of the industrial zone.



The railway station of Herstal is situated at 1,5 km from the Site. At 11,5 km from the site, the
airport of Liège is located (in Voroux-Goreux) and the airport of Maastricht is located at app. 46
km.



The investigated part of the site comprises an areal extent of app. 4 ha, of which the logistic
hall covers ca. 22.450 m2. The future attached building (Lot I, Phase II) covers also
22.450 m2 according to the reviewed plans.



A transformer building (approx. 6 m2) is located on the northwestern side of the site.
A gas main station is located near the main entrance of the site.




Approx.
20.000 m2
are sealed traffic- and parking areas.





A detailed topographical site survey was carried out in 2001. No final detailed topographical
survey (levels) was recieved. The actual buildings show no deviation to the planned building
location and size according to the received information from ProLogis.




	 	 	 

	 
	 	 
	Date:  23th September 2002

	 	Page:
8/44






 









 




The buildings were constructed in the year 2001-2002. No business operations were started.
The first tenants will enter the building 15th September 2002. The site layout maps
are attached in appendix 2.




	 	 	 

	Land Register Identification:

	 	Avenue du Parc Industriel
	 

	 	4041 Herstal-Milmort (Liège)
	Owner of the properties:

	 	ProLogis Belgium II Sprl
	Address:

	 	Capronilaan, 25-27
	Town/city:

	 	Schiphol-Rijk
	Country:

	 	The Netherlands
	Postal code:

	 	1119 NP
	Managing Director

	 	Ko Nuiten
	Contact person:

	 	Zuzanna Eskinasi
	Telephone:

	 	+31/206.556.639
	Fax:

	 	+31/206.556.600
	 
	 	 
	Officially responsible
persons
	 	 
	For environment:

	 	none required
	for (waste-)water:

	 	none required
	for waste:

	 	none required
	for hazardous transports:

	 	none required
	for health and safety:

	 	none required
	for fire protection:

	 	none required
	 
	 	 
	Certification:

	 	Not applicable
	At actual location since:

	 	Not applicable — still a vacant building
	Significant changes:

	 	agricultural use until approx. 2001
	 

	 	2001 till 2002 construction of building (Lot I, Phase I)
	 
	 	 
	Business activities:

	 	Not applicable — Untill now no activities have been executed on
the investigated site
	 
	 	 
	Number of employees:

	 	Not applicable
	Administration:

	 	Not applicable
	Storage / production:

	 	Not applicable






	 	 	 

	 
	 	 
	Date:
 23th September 2002

	 	Page:
9/44






 









 






	 	 	 
	Working hours:

	 	Not applicable
	 
	 	 
	Buildings rented out
	 	 
	to external companies:

	 	none
	Rented buildings:

	 	none





2.1.2 Current Property Use / Site Operations



The Site is classified as an industrial area allowing non-polluting industrial activities. Zone 3
of the industrial parc in which the Site is located, allows only transportation and
transport-related activities since this zone is specified as “parc industriel pour les logistics”.
The entire surface of this Industrial Zone 3 is app. 121 ha.



The land studied in 2000 covered approximately 15,5 ha. The whole Site was at the time (2000)
owned by S.P.I. (Services Promotion Initiatives en Prov. de Liège, Rue Lonhienne, 14 in 4000
Liège).



This site was in 2001 divided in 2 parts (Lot I and Lot II) of each app. 8 ha. ProLogis bought
one of both sites in June 2001 (Lot I). The other part is still
property of S.P.I.  
Lot I was divided in two pieces : Lot I, Phase I and Lot I, Phase II. Each Phase covers
approximately 4 ha. Only Phase I is included in this investigation.



The Site of interest (Lot I, Phase I) covers approximately 4 ha. A building of app. 22.450
m3 had been constructed. No electrical towers and overhead power lines are located on
the site. Along the southern property border three electrical towers are present.




The cadastral data from Lot I are known as :





	•	 	community of Herstal, Division 6, Section A, cadastral parcel 620 a (27.529 m2)
	 
	•	 	community of Herstal, Division 7, Section A cadastral parcel 450 b2 (40.548 m2)
	 
	•	 	community of Herstal, Division 7, Section A cadastral parcel 450 c2 (9.576 m2) 
	 
	(cf. appendix 3.1.).




One big distribution facility/warehouse with an office department is located on Site.




			
	 	 	 
	Date:
23th September 2002
	 	Page:  10/44






 









 





The current site operation (empty building) is not qualified as of any environmental concern
according to the results of the site visit, data review and according to verbal statements of the
authorities. Specific operation permits beyond the general construction are not required at this
time.




2.1.2.1 Electricity, Transformers



The plant’s electric system is connected to the public supply net (Idea, in the past
Electrabel). No PCB containing transformers or capacitors are in use on site as far as noticed
during the site visit. This was confirmed by ProLogis.



The site operates 1 transformer in the transformer-station located near the sprinkler
installation (see map in appendix 2.2); the power output is 630 kVA.




2.1.2.2 Water Management




Water Supply



The
potable water supply of the Site is partly provided by the S.W.D.E.
(Société Wallone des eaux)
and the C.I.L.E. (Compagnie Intercommunale
Liègois des eaux). This water concerns sanitary and
drinking water. A sprinkler basin (capacity 550 m3) is present on the site
(southwestern area of the location).




Sewer System / Waste Water



The site’s sanitary waste water and storm water is collected separately in the site’s sewer system
and conveyed to the new public sewage system. The internal sewer consists of PVC-pipes.



The site does not operate a water / oil separator (not required); production waste water
generating processes are not carried out at this time. Sanitary water is headed via a degreaser
towards the sewer system.




2.1.2.3 Heating Units



The site operates a natural gas fueled heating system consisting of:




			
	 	 	 
	Date:
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	•	 	a heating circuit with a boiler unit (Ø 160) in the administration building (Firm Elco
Klöcler) Two heating rooms are present. The equipment in the offices consist of Radson radiators.
	 
	•	 	16 modern heating radiators type Reznor in the logistic halls.




The radiators in the logistic halls should periodically be supervised by a certified chimney sweep
company.




The location of the boiler unit in the administration building is shown in Appendix 2.6.




2.1.2.4 Heating Oil




The site does not operate a heating oil fueled system.




2.1.2.5 Natural Gas



There is a
natural gas pipeline (Association
Liégois de gaz (A.L.G.) and Distrigas) and a
sewage draining system. Electrical power is provided by A.L.E.
(Association Liégois
d’léctricité).




2.1.2.6 Underground Storage Tanks (USTs)



At the site, no underground storage tanks are noticed. No visit was executed inside the
building, only the exterior part.




2.1.2.7 Aboveground Storage Tanks (ASTs)



At the site, besides the water tank (550 m3), no aboveground storage tanks are
noticed. No visit was executed inside the building, only the exterior part




2.1.2.8 Fuel Station



No fuel station or battery loading stations are noticed on site.




			
	 	 	 
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	 	Page:
 12/44






 









 





2.1.2.9 Storage of Chemicals



Nowadays the activities of the site do not (yet) comprise the use, storage and/or handling of
hazardous materials and materials of environmental concern.



According to the owner of the site, no spills or accidents occured till date during the building
of the hall.




2.1.2.10 Emissions to the Atmosphere



In the future due to the gas heating / boiler exhausts, emissions will be generated on the site. At
this time no air emissions are present on site.




2.1.2.11 Noise, Vibration and Odor Nuisance



Up till now the site does not operate heavy noise generating machinery leading to external noise
emissions above the permitted emission values for industrial areas nor generating relevant
vibrations.




No complaints occurred during the building of the warehouse.



The truck traffic to and from the ProLogis- site will not pass designated residential areas. Since
the site entrance as well as the loading / unloading areas and internal traffic zones are not
neighbored by housing areas, truck traffic generated noise emissions are unlikely to be a nuisance
in the future.



Odor emitting processes do not occur at the site.




			
	 	 	 
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2.1.2.12 Waste Materials



The site (empty building) produces no hazardous commercial waste (packaging material,
cardboard, plastic foil etc.) or normal office waste.




2.1.2.13 Potentially Contaminated Building Materials




Asbestos Containing Materials (ACM)



ACM has not been identified during the inspection of the recently constructed building and is not
present according to the owner and the reviewed construction documents (i.e. installation of ACM in
new buildings is forbidden according to the applicable Belgian legislation).




PCB



The site does not operate PCB-containing transformers according to the owner; PCB-containing earth
cables have not been installed.




2.1.2.14 Radioactive Materials



Prologis
has not been using or storing radioactive materials. Ionization-smoke-detectors
containing radioactive substances are not used on the site.




2.1.2.15 Other Contaminated Building Material



During the site visit, no contamination of building materials has been observed (new
building).




2.1.2.16
Health & Safety



Dangers to the public could not be detected at this time. The site is not in possession of an
emergency plan at this time. No plan is required at this time.




			
	 	 	 
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2.1.2.17 Fire Protection



The municipal fire prevention revised the application for the building permit (prior to
the start of the construction of the building) and imposed some rules concering fire
protection.




According to the reviewed permit the following rules should be followed :





	•	 	Implantation : A connecting road should be present for the intervention
vehicles (fire department, ambulance ,...) This road should be 4 m long and should be located at a distance
of 2 m from the building. This has been fulfilled.
	 
	•	 	Structure : Rf-value (fire resistance)
1/2 h, electricity should be
controlled by a recognized
expert, the safety exits should be clearly marked, pictograms must be applied, an alarm
should be installed
	 
	•	 	Fire protection : The site must be equipped with sufficient hose reels. The
whole building
must be reached with one jet of water. A proposal with the
implantation of the fire extinguishers for the whole building complex must be transferred. Two Fire extinguishers based
on water must be installed on each officelevel. Four CO2 fire extinguishers
must be installed on specific sites on the location. The installation of automatic fire / smoke
detectors
and a sprinkler system is required. An aboveground hydrant should exists (possible to supply 60 m3/hour, during 2 hours).




Should future storage and handling of large volumes of combustible/flammable materials or an
expansion of the halls result in an increase of fire risk, than an upgrading of the present
fire prevention / fire fighting installations would be required.




2.1.3 Previous Property Use



The site was used for agricultural purposes until 2000-2001. Mainly cereals and maize
were grown on the land. An aerial photograph ordered by the firm Eursosense showed that in
1985 no activity was present on the site.




			
	 	 	 
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2.1.4 Summary of Property History



Besides the above mentioned previous use, the site development till date comprises the
construction of the present logistic hall and related administration- / service building in
2001-2002. On the
15th of September, new tenants will enter this buildings.




2.2 Environmental Setting




2.2.1 Geology



The geology of the location can be schematised in the following way:



The site of investigation is situated in the wide valley of the Meuse. Immediately below surface,
Quaternary river deposits occur. These can consist of gravel (Pleistocene Meuse terraces) and a
mixture of sand, silt and clay (Holocene Meuse deposits).



Below these recent layers, the Paleozoic basis occurs. At the location the top is formed by
deposits of Westphalian and Namurian (late Carboniferous) age. These consist of sandstone and
schist, alternated with coal beds. Underneath, the Visean and Tournesian limestones occur. The
underlying Devonian beds consist of alternating thick limestone and sandstone layers. The basis of
the Paleozoic layers is formed by metamorphous schist and kwartsite of Silurian and Cambrian age.



Potential aquifers in the region are formed by the Meuse gravel deposits, and the Paleozoic
limestones in which secondary porosity was created by karstic phenomena.




2.2.2 Hydrogeology



According to Mr. Lalleman d’Herstal (2000) it is not possible to abstract groundwater at this
location. This is due to the presence of sandstone, schists, limestone and coal beds in the
subsoil. The groundwater level of the first aquifer should only be situated at 118 m-gl in the
Houiller. However in this formation some sandstone layers can be present with a thickness of 20-30
m. It is impossible to abstract water from the sandstone layers.




			
	 	 	 
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We asked once more for the groundwater abstraction within a radius of 2 and 5 km. Four active
abstractions (undrinkable) are present within a distance of 2 km. Two non-active groundwater
abstraction wells are present within a distance of 2 km. One potentially polluating activity is
present within a distance of 2 km : Axima S.A.. The data are presented in appendix 3 (3.3.).




2.2.3 Hydrology



Rainwater is collected on the site and conveyed into the public sewage system (separation
rainwater — discharged waste water). The only surface water bodies of importance for the Site are
the river called the “Meuse (de Maas)” and the Albert canal, both located approximately 6 km to
the east of the Site. The direction of the groundwaterflow can not be determined based on present
data.



The Site is located in an area with problems with respect to rainwater. The soil in this area is
very impermeable, which makes it very hard for rainwater to infiltrate in the soil. This was
obvious during the site visit as the soil was very swampy after a downpour. A big pond was visible
on the southeastern site.




2.2.4 Topography



The topography of the Site slopes from the southeast to the northwest. On the site of Weerts a
pile of soil was visible. No information concerning the origin of the ground was given. Probably
the soil is originating from Weerts.




2.2.5 Previous Investigations



In the past GEDAS carried out an environmental and geotechnical investigation in the current
investigation area and on the neighbouring site.



According to the reviewed files provided for the Phase I Environmental Site Assessment, GEDAS
produced the following reports for the site and the neighbouring site:





	•	 	Measurement plan dated
6th November 2000, 03/3043 (neighbouring site)
	 
	•	 	Measurement plan dated
6th of
January 2001, 11/11/1844





			
	 	 	 
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	•	 	Phase I Environmental Site Assessment; dated
5th October 2001, 03/3043 (neighbouring site)
	 
	•	 	Phase I Environmental Site Assessment; report 11/15/1844 dated 18th January 2001,
11/11/1844
	 
	•	 	Geotechnical site investigation dated
29th November 2000, 03/3043 (neighbouring site)
	 
	•	 	Geotechnical site investigation dated
23th January
2001, 11/11/1844
	 
	•	 	Soil investigation dated 9th October 2000, 03/3043 (neighbouring site)
	 
	•	 	Topographical survey dated
December 21st 2000, 11/11/1844




Together with the geotechnical study on the neighbouring parcels, 8 soil samples were taken and
were analysed to determine the soil quality. No concentrations exceeded the Walloon Background
Values or the Flemish Vlarebo Intervention Values.



A new soil investigation was executed on the current site.




2.2.6 Environmental Sensitivity



No wooded areas were observed on or around the property by GEDAS at the time of the Site
inspection. The Site was formerly covered with cereals. No stressed vegetation was noticed. The
site is not located in a biological valuable area. This was once more asked to the institution of
nature conservation.



Regarding the presence of archeologic relicts, an inquirement was made once more with the
authorities.



According to the S.P.I. no relicts were ever found on surrounding properties.



The
“Service des fouilles de la région Wallonne” has mentioned in 2000 the possible presence
of a Roman track from Tongeren to Herstal (Chaussée Brunehaut on the map). This implies that
every demand for a building permit should be advised by the
“Service de Archéologie,
Direction de Liège”. They should attend every meeting concerning the preparation of the works
and the start up of the activities. If something important is found they can stop the works.



There were contacts with this autorities during the construction works. A copy of this
correspondence is represented in Appendix 3.7.



To the west behind the E313 the municipality of Liers is situated. To the east at 1,5 km the
municipality of Milmort is located.




			
	 	 	 
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2.2.7 Planning Applications



The district plan defines the site and its surrounding as an industrial area. A copy of this Plan
is attached in appendix 3.4. Additional legal obligations were asked for by the competent
autorithies.



Building permission for the constructed building :



The building permission was granted on March 5th, 2001. The building permission for the
Phase I distribution center is attached in Appendix 3.5.




2.2.8 Current Surrounding Uses



The Site
is bordered to the west by the “Avenue du parc industriel” and the E313 Highway and to
the other sides by small to medium sized enterprises.



The closest neighbours are Weerts (to the south) and Techspace Aero (to the east). These companies
are medium-sized enterprises. Weerts is specialised in transport of biscuits. Techspace Aero
produces aircraft engines. On the other sides the site is bordered by agricultural land, property
of I.S.P.C. and Air Liquide.



According to the authorities no specific environmental problems were noticed except for some
complaints concerning noise in the past. These were complaints from the local inhabitants
concerning traffic. These complaints were not addressed to the activities of ProLogis.




The surrounding companies are :





	•	 	Techspace aero S.A., Route de Liers, 121, 4041 Milmort, T : 04/278.81.11, F :
04/278.52.07
	 
	 	 	Activity: Production of aircraft engines and treatment of waste products related with
the production process. The activities are present since 30 to 40 years. No particular problems
were ever noticed.
	 
	•	 	Weerts: Avenue du parc industriel,. This is a rather new site, still under
construction.:
	 
	 	 	Activity: Transport of chocolates
	 
	•	 	L’air liquide Belge S.A., Avenue du parc industriel, 2, 4041 Milmort, T
: 04/287.78.78, F : 04/278.67.47





	 	 	 

	 
	 	 
	Date: 23th September 2002

	 	Page: 19/44






 









 


 








	 	 	Activity: Filling up canisters with industrial gases : The activities are present
since 6 à 7 years. No problems were ever reported.
	 
	•	 	Gar. Collette Sprl (Mitsubishi), Route de Liers, 122, 4041 Milmort, T : 04/278.58.16 , F :
04/278.71.14
	 
	 	 	Activity: garage
	 
	•	 	Galliker Transport & Logistics, Avenue du parc Industriel, 4041 Milmort, T :
04/287.01.01, F : 04/278.03.03
	 
	 	 	Activity : The company is active in the transport sector. Activities are present
since 1985-1990.
	 
	•	 	ISPC, Route de Liers, 125, 4041 Milmort, T : 04/278.92.92
	 
	 	 	Activity: A wholesale business (+ transport) in horeca requirements (food, cooking
utensils, etc. ). The company is located on the site since 2 years.
	 
	•	 	Van Dijck S.A., Route de Liers, 4-6, 4041 Milmort, T : 04/278.73.25, F : 04/278.06.37
	 
	 	 	Activity: Production of clinckers




Based on the review available documentation and the site visit, the current use of the surrounding
properties does not seem to represent any risk for potential contamination of the Site.



All companies in the surrounding area are in possession of required operational permits and no
issues of non-complianced have been reported. No changes with regard to the situation in 2001 was
reported. Only Weerts started in 2001 with the storage of foods in refrigerators (cf. appendix
3.6.).




2.2.9 Previous Surrounding Uses



The area was previously used for agricultural purposes.




2.2.10 Statement of Property Sensitivity



An official central register regarding the sensitivity of a property does not exist in Belgium.
The information regarding potential sensitivity issues such as environmental relevance, landfill




			
	 	 	 
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registration, contaminated land registry, mining issues etc. have to be obtained from several
authorities.



The mentioned sensitivity aspects are described in the previous chapters.




2.2.11 Site Access and Traffic



The location is served by the E40 and the E313. Public transport facilities are present. The
surrounding streets are well-maintained.




2.2.12 Utilities



Water



The
potable water supply of the Site is partly provided by the S.W.D.E.
(Société Wallone des
eaux) and the C.I.L.E. (Compagnie Intercommunale
Liègois des eaux). This water concerns
sanitary and drinking water.



Gas



Natural
gas is supplied by Distrigas and A.L.G. (Association
Liègois de Gaz) (cf. Paragraph 3).



Electricity



Electricity is provided by Idea (in the past by Electrabel).



Sewer



The sewer service is provided by the local authority.



New
information was asked for from the N.A.T.O., Belgacom, S.W.D.E.,
A.L.E., forces armées, A.L.G.
Only the information from Belgacom reached us at the date of the report. Other information will be
sent later.




			
	 	 	 
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3 Regulatory / governmental agency inquiries



This section discusses the Walloon legislation regarding environmental practices.



The present legislation in Walloon relating to environmental protection is not well developed.
Only in specific domains exists a legislation (f.e. waste).



The authorities are aware of the current situation and have worked out a new legislation. The
new decree should replace the old legislation. However one is still waiting for new
implementing regulations. Until then the old regulations stay into use.



According to the local authorities it will probably take another two years before this new
legislation will be officially enforced.




3.1 Environmental law



A big part of the environmental law of the Walloon district is still sectorial legislation
(surface water, noise, etc.). However since ten years some overall environmental aspects are
implemented in the Walloon legislation.



From this point of view two decrees merit particular attention.




3.1.1 Environmental impact assessment



In view of the European directive 85/337/EEG concerning environmental impact assessment of some
public and private projects, the Walloon authorities have decided on the decree of September
11, 1985. The decree was implemented in 1991 and has found wide application.



The decree makes some government decisions (f.e. granting of exploitation permits, building
permits) subject to a preceding environmental impact assessment f.e.:



Whenever a request for an exploitation permit or some building permit is submitted, it has to be
joined by a preceding environmental impact assessment
(,,Notice d’évaluation préalable des
incidences“).




			
	 	 	 
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The competent authorities evaluate the repercussions of the project on the environment. If the
authorities consider the repercussions to be negligible, no further investigation / measures
should be taken.



If the authorities consider the environmental repercussions of the project to be important, an
extensive environmental impact assessment (,,ètude d
’incidences“) should be conducted.



This
elaborate assessment (,,ètude d’incidences“) contains at least:





	 	•	 	A description of the project, the location, planning and dimensions
	 
	 	•	 	The necessary information to identify and to value the effects of the project on the
environment
	 
	 	•	 	A description of the necessary measures necessary to avoid negative aspects
	 
	 	•	 	A non-technical description of the data mentioned above




The elaborate environmental impact assessment should be conducted by a recognised expert. After the
study has been finished, the developer submits five copies of the demand to the competent
authorities. These authorities forward the demand to the local authorities with a view to a public
investigation.




3.1.2 Admission to environmental information



With a
decree of June 13, 1991 (concernant la liberté d’acces des
citoyens à l’information relative
è l’environnement) the free entrance to environmental information has been converted into law.




3.2 Environmental law concerning specific environmental sectors



Up till now no complete integrated system for environmental permits is implemented. Only in a few
domains the legislation is well developed.



The most important legislations at this moment are :




			
	 	 	 
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3.2.1 Exploitation of dangerous or unhealthy activities



In the Walloon provinces the legislation for exploitation of unhealthy goods is still the
R.G.P.T. (Réglement Générale pour la Protection du Travail) — legislation (former federal
legislation). The permits are given for a maximal duration of 30 years.



Activities listed in Chapter II of title I of the R.G.P.T. should get an exploitation permit. The
establishments are grouped in two classes, depending on their size and impact on the
environment.



If the activities are defined as second class, the involved municipality (in case Herstal) will
judge the demand. If the activities are classified as class one, the involved province (in case
Liége) will grant the environmental permit. If necessary an appeal should be lodged with the
Walloon minister.




3.2.2 Protection of the surface water



The protection of the surface water is organized in the decree of 7 October 19851. A
permit is necessary to discharge water (industrial waste water and domestic wastewater).




3.2.3 Protection and exploitation of groundwater and drinking water



With the decree of 30 April 19902 the protection of the groundwater and the surface
water is regulated. For example for the abstraction of groundwater a permit is necessary.




3.2.4 Protection of air



No separate legislation exists concerning air pollution. The permit for the exploitation of the
activities holds standards for the air emissions. Awaiting a new Walloon legislation, the
authorities often use the German TA-Luft standards.






 




			
	1	 	Décret sur la protection et l’exploitation des eaux sousterraines et des eaux potables
	 
	2	 	sur la protection et l’exploitation des eaux sousterraines et des eaux potables





			
	 	 	 
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3.2.5 Noise abatement



No separate legislation exists concerning noise abatement. A federal law of 1973 still forms the
legal framework. As for the air-emissions, the permit for the exploitation of the activities holds
standards for noise.




3.2.6 Soil protection



A soil investigation has been conducted at this site (cf. appendix 3.2.).



In Walloon there is only specific regulation concerning soil, soil protection or soil remediation
for service stations. Frequently references are made to the Walloon Waste legislation.



The Walloon authorities have however realized that there is a need for such a legislation and are
working on a legislation concerning this soil protection.




3.3 Environmental management system



In order to manage environmental issues properly in all departments of the company, it is essential
that everyone bears clear-cut responsibilities for the environment. In the event of accidents that
affect the environment, the responsible authority has to be informed.



In Belgium, there are no legal requirements for the implementation of an environmental management
system, neither in Flanders nor in the Walloon provinces.




			
	 	 	 
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3.4 Sitescope Report



In Belgium, a property data file comparable to a sitescope report and sitefile directory (see next
chapter) is not provided. The land registry comprises the areal extent of a property, the covered
land parcels / identification, ownership, registered easements.



A copy of the actual land registry dated September, 2002 is attached as appendix 3.1.



According to the land registry, the ProLogis site comprises the following parcels defined in land
registry: Municipality of Herstal, Division, Section A, part of parcel 450 y.




3.5 Sitefile Directory



Not applicable in Belgium




			
	 	 	 
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4 Results of Walk-Over Inspection



During the walk-over inspection, no issues representing a relevant matter of environmental concern
or indicating the need for major rehabilitation- or corrective measures have been identified. No
visit inside the buildings was conducted. No activities were present on site according to ProLogis
and as far as seen.




			
	 	 	 
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5 Environmental Risk Assessment



GEDAS, a member of the ARCADIS group, has performed an update of a Phase I Environmental Site
Assessment of a Site at the Avenue du Parc industriel at Milmort (Herstal), Belgium in conformance
with the scope and limitations of the ASTM standard practice for Phase I Environmental Site
Assessments.



Observations made during the Site reconnaissance did not identify any non-compliance with the
environmental legislation.



A review of historical activities on Site and the current use of the Site do not reveal any
environmental conditions and no further investigation is recommended.





Our Phase I ESA did not reveal any recognised environmental conditions and no indications of
possible land contamination were reported nor noted and no further investigation is
recommended or required.




			
	 	 	 
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6
Conclusions and Recommendations




Summary
of Issues




	 	 	 	 	 

	1. Environmental Risk Assessment

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Based on the findings of
the site inspection and
data review / desk
study, the actual and
planned future site
utilization and the
identified subsurface
situation do not inhere
any relevant
environmental risks	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required
	 
	 	 	 	 
	2. Results of Walk-Over Inspection

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	During the walk-over
inspection, no issues
representing a relevant
matter of environmental
concern or indicating
the need for major
rehabilitation- or
corrective measures have
been identified	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required
	 
	 	 	 	 
	3. Planned Building Expansion

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	On Lot I, Phase I a new
storage building had
been constructed. On
this parcel no building
expansion is provided.	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required
	 
	 	 	 	 
	 
	 	 	 	 
	4. Site-/Building Survey Report

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Existing documents state
that the actual
buildings show no
deviation of the planned
building and the
constructed building
with regard to location
and size.	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required






			
	 	 	 
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	5. Chemicals

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Site activities at this time do not comprise
use/handling of hazardous materials and materials
of environmental concern requiring official
permission and regulatory surveillance.	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required
	 
	 	 	 	 
	6. Traffic Study

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Truck traffic is not present at this time. In the
future traffic will not pass through designated
areas. Since the site entrance as well as the
loading / unloading areas and internal traffic
zones are not neighbored by housing areas, truck
traffic generated noise amissions are unlikely to
be a nuisance in the future.	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action presently
	 
	 	 	 	 
	7. Future Fire-Prevention Measures

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Should future storage / handling of larger volumes
of combustible / flammable materials or an
expansion of the halls result in an increase of the
fire risk, an upgrading of the present fire
prevention / fire fighting installations would be
required	 	 
	 
	 	 	 	 
	 

	 	Recommendation:	 	 
	 
	 	 	 	 
	 

	 	Internal assessment of future fire load situation
depending on planned storage activities, informal
discussion with authorities regarding potential
permission requirements.
	 	No Action presently
	 
	 	 	 	 
	8. Soil investigation

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	Based on the soil analysis no further soil and
groundwater investigation
or remedial actions are required by the authorities.	 	 
	 
	 	 	 	 
	 

	 	Recommendation:
	 	No Action required






			
	 	 	 
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	9. Easements

	 	Finding / Conclusion:	 	 
	 
	 	 	 	 
	 

	 	The following easement exist for the ProLogis-site :	 	 
	 
	 	 	 	 
	 

	 	• A connecting road
should be present for the intervention
vehicles 

   (4m long at a distance of 2 m
from the building)	 	 
	 
	 	 	 	 
	 

	 	Recommendation:	 	 
	 

	 	 	 	No Action required






Antwerpen, 24th September 2002




			
	 	 	 
	Marleen Clerinx
	 	Herwig Teughels






			
	 	 	 
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       APPENDICES




	 	 	 	 	 

	 	1.   	 	 	Photographs

	 	1.1.	 	 	Site Photographs

	 	1.2.	 	 	Aerial Photograph







	 	 	 	 	 

	 

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 23th September 2002
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	 	2.	 	 	Plans and Charts

	 	2.1.	 	 	Location site

	 	2.2.	 	 	Location borings

	 	2.3.	 	 	Location current and future buildings

	 	2.4.	 	 	Measurement plan

	 	2.5.	 	 	Location photographs

	 	2.6.	 	 	Location heating equipment







	 	 	 	 	 

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	 	3.
	 	 	Documents

	 	3.1.	 	 	Cadastral map

	 	3.2.	 	 	Soil investigation (not added, in possission of ProLogis)

	 	3.3.	 	 	Data concerning groundwater abstraction

	 	3.4.	 	 	Industrial zoning

	 	3.5.	 	 	Building permit

	 	3.6.	 	 	Reaction municipality of Herstal

	 	3.7.	 	 	Correspondece authorities concerning archaeological relicts

	 	3.8.	 	 	Information conerning utilities







	 	 	 	 	 

	Date:
 23th September 2002
	 		 	Page: 34/44






 









 







	 	 	 	 	 

	 	4.	 	 	Environmental Report Tick List







	 	 	 	 	 

	Date:
 23th September 2002
	 		 	Page: 35/44






 









 









	The report must include The Environmental Report Tick List below (which is necessary to demonstrate
to ourselves and our insurers that which our consultants have seen and not seen.) The Purpose of
this report is to identify environmental issues effecting the proposed purchase and development of
the proposed site. The list below will enabl Prologis to assess the items which the consultant has
considered and tabulates specific works but must not be taken as complete or limit the comments
made 1 the consultant which may effect the purpose of the Investigation This Form Must be completed
by the consultant and included in the Environmental Phase 1 Report Development Name GEDAS N. V.
Site Address Clara Snellingsstraat, 27 Consultant Practice 2100Deurne Name of Consultant
(individual) Herwig Teughels, Kristof Peperstraete Date of Visit | 22/08/2002 Review of existing
documents available Phase I Environmental Site Assessment; dated 5th October 2001, 03/3043
(neighbouring site) a. Environmental Phase I Environmental Site Assessment; report 11/15/1844 dated
18th January 2001,11/11/1844 Asbestos Geotechnical site investigation dated 29th November 2000,
03/3043 (neighbouring site) c. Geotechnical Geotechnical site investigation dated 23th January
2001,11/11/1844 Soil investigation dated 9th October 2000, 03/3043 (neighbouring site) Soil
investigation dated 4th September 2002,11/15/002415 (current site) d. Soil investigation
Topographical survey Topographical survey dated December 21st 2000,11/11/1844 Measurement plan
dated tfh November 2000, 03/3043 (neighbouring site) Measurement plan Measurement plan dated 6“1 of
January 2001,11/11/1844 g Building permit Building permit 23/2001 dated March 5th, 2001 Date: Page:
23th September2002 36/44





 









 









	Cadastral plan cLd. August 2tfh, 2002 Zoning plan d.d.26/11/1987, Plan de secteurNr. 15 (Liege),
carte 42/2 Permit d’Air Liquide d. d. 05/04/2000 Permit d’Air Liquide d,d. 22/04/1994 Permit de
S.A. Techspace Aero d.d.02/10/1995 Permit de S>A, ISPC d.d.30/04/1998 Permit de Charlier
Transport d.d.17/08/1990 exploitation permits surrounding firms An update of these permits was
requested for Please tick the Box if seen or carried ‘his Section to be filled in by the Consultant
Site description out Comments .ocation of Site Map Reference 1 Near Airport/ Rail /Major Road Power
Station Etc 1 Rough estimate of the shape of the site lea. 4 ha Brief description of topography 1
Site surroundings (specify radius of 1km of the site) Identifiable aspects of the site i.e.: ponds,
trees, water courses, drainage, services etc. jj ^courses visible Date: Page: 23th September2002
37/44





 









 









	Records Review A desk top study using historical maps and other sources, local libraries and local
knowledge [reclaimed The use of any local data bases that may be held by the local building
inspector, planning office,H etc. BNot applicable Any historical data that can be gained from
adjoining land or properties HEurosense In discussion with any regulatory authorities, any
licences, consents or other data effecting the) site | I Reclaimed Mining or other intrusive
operations, reference to aquifers Site hydrogeology | Site Reconnaissance No visit inside the new
building has been executed. The surroundings were checked. H 1 Identification of items which may
effect the 1 I environmental issues on the site i.e.: Any underground or above ground tanks ^H f
Storage facilities for materials 1 | Waste disposal arrangements 1 | Evidence of spillages
Information i reclaimed from a the £ construction I Details of existing drainage services |
[company I Date: Page: I 23th September2002 38/44






 









 












	Details of services- Information reclaimed from gas A.L.G. Information reclaimed from water the
S.D.W.E. Information reclaimed from electricity A.L.E. sewers (septic tanks) Bplan Indications of
previous use i.e.: manufacturing processes, demolition evidence, use of pesticides l ^l Evidence of
flooding or knowledge of water table (probable depth, direction of flow) 1 Surface water hydrology
1 Local wildlife/ecology H Electro magnetic fields Helectrical towre Details of superficial
deposits (side of Weerts Date; Page: 23th September2002 39/44





 









 












	Footpaths and rights of way
Local population, including traffic impact assessment 1 Environmental Matters Any evidence of
endangered species 1 SSI’s (Special Scientific Interest) sites or ecological resources, (e.g.:
newts, stream diversions, B landscaping, designation as a site of special scientific interest or an
area of outstanding natural 1 beauty, wetlands etc.) H The site or surroundings that may affect air
quality 1 Sound restrictions (potential impact of noise during construction and final development
stage) I Light pollution (any future development shading existing buildings or vice versa) H
Registered and potential landfill sites 1 Surface water drainage and hydrology and evidence of
flooding, including the identification oil To check for signs of Japanese Knotweed, Himalayan
Balsam, Giant Hogweed and other non-H native, invasive and destructive vegetation. (psto Interviews
Interview or telephone conversation with existing owners, agents or occupiers J HConfidential
Interview with possible occupants Date: Page: 23th September2002 40/44





 









 









	Existing Structures In addition to the above, if buildings are on the site, then each building is
to be reviewed and the following ascertained: Interview or telephone conversation with existing
owner or agent No activities The current use and previous use of the buildings (occured on site The
current or previous use of adjoining properties H2.2.8. Possible industrial processes B Possible
landfill areas 1 Evidence o f industrial dumping 1 Evidence of any chemical storage on site i.e.:
drums Evidence of any ponds or lagoons used within the waste treatment process ^ Evidence of vent
pipes Hl g Points of discharge from any of the drainage on site a) § Evidence of existing sub
stations, gas meter houses or pumping stations Name, address and contact number for each of the
owners of the properties Internal observations of existing buildings i.e.: machinery, processes,
tanks, asbestos Hchecked I Do the regulatory authorities know the current company? Hpermit
Evidence of termite infestation bno Date: Page: 23th September2002 41/44 1 a






 









 












	Confirmation from the Structural Engineer appointed for the project to comment upon the Further
Items For Consideration Environmental Phase I report (if appointed) Any archaeological requirements
which may impact upon the site development Presence of minerals/geotechnical faults/any other
problem disclosed by the Desktop Study The assessment of data in summary form following the factual
reporting on the above. To include Evaluation Of Data comments on the possible impact on
construction. Note that the purpose of a Phase IT is to answer a specific question and should be
specific with regards to methodology and scope.