ARCHIVED REPORTS_MFR AND SHEA HOMES RECORDED LAND USE COVENENT FOR GREAT VALLEY PARKWAY

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Joaquin County, State of California (the " Property" as further described below) , and the Department of Toxic Substances Control (the "Department") . Pursuant to Civil Code section 1471 , the Department has determined that this Covenant is reasonably necessary to protect present or future human health or safety or the environment as a result of the presence on the land of hazardous materials as defined in Health and Safety Code ("H&SC") section 25260. The Covenantor and the Department, hereby agree that, pursuant to Civil Code section 1471 and Health and Safety Code section 25355 . 5 , the use of the Property be restricted as set forth in this Covenant. ARTICLE I STATEMENT OF FACTS 1 . 1 Shea Homes entered into a Voluntary Cleanup Agreement with DTSC on June 5 , 2007 for the purpose of determining the extent of the existing hazardous substance contamination at their proposed residential subdivision development. Shea Homes agreed to conduct appropriate remedial measures to allow for future unrestricted use of the property. The southern portion of Neighborhood C is designated as Assessor's Parcel Numbers (APNs) 262-020-07, 262-020-08 , 262-020-091 262-020- 17 , 209-450-03 (Site) and is located at 19855 W. Grant Line Road , Mountain House, San Joaquin County, California . The total residential property development site is approximately 61 acres . But only a small portion of that development is subject to this environmental land use restriction . Because of elevated concentrations of dieldrin located across the proposed development, the soils contaminated with these elevated levels of dieldrin were excavated and removed to be encapsulated in an internment cell (as set forth in the surveyed legal description) that was constructed beneath the street known as Great Valley Parkway. This internment cell area , totaling approximately 2 . 745 acres , hereafter referred to as the Property (" Property") is subject to this Land Use Covenant, is more particularly described in the attached Exhibit A, "Legal Description ," and depicted in Exhibit B. This internment cell lies wholly beneath Great Valley Parkway, and the internment cell's location under that roadway begins north of Great Valley Parkway's intersection with Grant Line road on the South and extends underneath Great Valley Parkway to the north until the internment cell ends before Great Valley Parkway Page 2