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_sq. 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
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