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or practices of discrimination or segregation with reference to the selection, location, number, <br />use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the Security. The <br />foregoing covenants shall run with the land. <br />ARTICLE 6. <br />HAZARDOUS MATERIALS <br />Trustor shall keep and maintain the Property in compliance with, and shall not cause or <br />permit the Property to be in violation of any federal, state or local laws, ordinances or regulations <br />relating to industrial hygiene or to the environmental conditions on, under or about the Property <br />including, but not limited to, soil and ground water conditions. Trustor shall not use, generate, <br />manufacture, store or dispose of on, under, or about the Property or transport to or from the <br />Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or <br />related materials, including without limitation, any substances defined as or included in the <br />definition of "hazardous substances," "hazardous wastes," "hazardous materials," or "toxic <br />substances" under any applicable federal or state laws or regulations (collectively referred to <br />hereinafter as "Hazardous Materials") except such of the foregoing as are used in construction <br />of the improvements to be constructed on the Property or as may be customarily kept and used in <br />and about residential property. <br />Trustor shall immediately advise Beneficiary in writing if at any time it receives written <br />notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory <br />actions instituted, completed or threatened against Trustor or the Property pursuant to any <br />applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous <br />Materials, ("Hazardous Materials Law"); (ii) all claims made or threatened by any third party <br />against Trustor or the Property relating to damage, contribution, cost recovery compensation, <br />loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) <br />above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Trustor's <br />discovery of any occurrence or condition on any real property adjoining or in the vicinity of the <br />Property that could cause the Property or any part thereof to be classified as "border-zone <br />property" under the provision of California Health and Safety Code, Sections 25220 et seq. or <br />any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on <br />the ownership, occupancy, transferability or use of the Property under any Hazardous Materials <br />Law. <br />Beneficiary shall have the right to join and participate in, as a party if it so elects, any <br />legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to <br />have its reasonable attorneys' fees in connection therewith paid by Trustor. Trustor shall <br />indemnify and hold harmless Beneficiary and its councilmembers, supervisors, directors, <br />officers, employees, agents, successors and assigns from and against any loss, damage, cost, <br />expense or liability directly or indirectly arising out of or attributable to the use, generation, <br />storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, <br />under, or about the Property including without limitation: (a) the costs of any required or <br />necessary repair, cleanup or detoxification of the Property and the preparation and <br />implementation of any closure, remedial or other required plans; and (b)) all reasonable costs and <br />expenses incurred by Beneficiary in connection with clause (a), including but not limited to <br />reasonable attorneys' fees. <br />9 <br />144\221\1488737.2