SITE INFORMATION AND CORRESPONDENCE

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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 section 25260. The Covenantor and the Department, collectively referred to as the "Parties", hereby agree that the use of the Property be restricted as set forth in this Covenant. ARTICLE I STATEMENT OF FACTS 1.01. The Property, totaling approximately 14.5 acres is depicted in Exhibit "A" attached hereto and incorporated herein by this reference. The Property subject to this Covenant is identified by San Joaquin County Assessor Parcel Numbers: 137-410-01; 137-410-02; 137-410-04; 137-410-05; 137-410-06; 137-410-07, in the City of Stockton, State of California. 1.02. The Property was remediated under the supervision and authority of the Department in accordance with an approved Remedial Action Plan (RAP)and a Remedial Design and Implementation Plan (RDIP) pursuant to Chapter 6.8 of Division 20 of the Health and Safety Code. Because hazardous materials, including polycyclic aromatic hydrocarbons (PAHs), Total Petroleum Hydrocarbons (TPHs) in the diesel and motor oil range, and the metals lead and arsenic, remain in soil under portions of the Property, the RAP provides that a deed restriction be required as part of the site remediation. The RAP identified concentrations that would protect human and ecological health if the Property's land use would remain industrial, commercial, and/or recreational. Remediation activities took place at the Property during 2003 and 2004. Ina letter dated November 15, 2005, the Department approved the report titled Remediation Completion Report, North Shore Parcels, Stockton Department of Housing and Development dated August 11, 2005, submitted on behalf of the City of Stockton. The conclusion of DTSC's review of the documents provided was that contaminants of concern are present in soil at 2