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ENVIRONMENTAL AGREEMENT <br /> THIS ENVIRONMENTAL AGREEMENT (this "Agreement") is dated as of <br /> J Iy 31 , 2019 (the "Effective Date"), between the CITY OF EVERETT, a Washington <br /> municipal corporation ("City") and KIMBERLY-CLARK WORLDWIDE, INC., a Wisconsin <br /> corporation ("K-C"). This Agreement is made as a condition of, and as part of the consideration <br /> for, the transfer of the land and the grant of easement described below to the City by K-C and is <br /> made pursuant to the Purchase and Sale Agreement between K-C and the City dated May 23, <br /> 2019, as the same may be amended(the"Purchase Agreement"). <br /> RECITALS • <br /> A. K-C is the owner of real property on the waterfront in Everett, Washington, on <br /> which K-C operated a mill and associated facilities, which property is legally described in <br /> Exhibit A to this Agreement(the"K-C Mill Property"). <br /> B. Under the Purchase Agreement, K-C conveyed to the City the fee interest in a <br /> portion of the K-C Mill Property by deed recorded under Snohomish County recording number <br /> 20190 7310 . The real property conveyed under the Purchase Agreement is legally <br /> described in Exhibit B to this Agreement and is referred to in this Agreement as the "Utility <br /> Property." <br /> C. Under the Purchase Agreement, K-C granted to the City an easement in a certain <br /> portion of the K-C Mill Property by easement recorded under Snohomish County recording <br /> number 2°1907310975 (the "Utility Easement"). The easement area of the Utility <br /> Easement is legally described in Exhibit C to this Agreement and is referred to in this Agreement <br /> as the"Utility Easement Area." <br /> D. The date of the conveyance of the Utility Property and the grant of the Utility <br /> Easement was July 31,2019 (the"Closing Date"). <br /> E. The City intends to utilize the Utility Property and Utility Easement Area for the <br /> development of combined sewer overflow and stormwater control facilities. A portion of the <br /> Utility Property will also be redeveloped as a public access area. <br /> F. The K-C Mill Property, including the Utility Property and Utility Easement Area, <br /> is a portion of the broader"Kimberly-Clark Worldwide Site" ("K C Site") that is the subject of <br /> Agreed Order No. DE 9476 entered into by the State of Washington, Department of Ecology <br /> ("Ecology") and K-C on December 20, 2012, (the "Order"). <br /> G. The purpose of this Agreement is to define certain responsibilities of the parties <br /> with respect to environmental issues associated with the Utility Property and the Utility <br /> Easement Area. <br /> 2 <br />