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7.10 Hazardous Materials. Trustor represents and warrants that except as disclosed
<br />to Beneficiary in writing, as of the date hereof to the best knowledge of Trustor: (i) the Land
<br />is free and has always been free of Hazardous Materials (as defined below) and is not and has
<br />never been in violation of any Environmental Law (as defined below); (ii) there are no buried
<br />or partially buried storage tanks located on the Land; (iii) Trustor has received no notice,
<br />warning, notice of violation, administrative complaint, judicial complaint, or other formal or
<br />informal notice alleging that conditions on the Land are or have ever been in violation of any
<br />Environmental Law or informing Trustor that the Land is subject to investigation or inquiry
<br />regarding Hazardous Materials on the Land or the potential violation of any Environmental
<br />Law; (iv) there is no monitoring program required by the Environmental Protection Agency
<br />or any other governmental agency concerning the Land; (v) no toxic or hazardous chemicals,
<br />waste, or substances of any kind have ever been spilled, disposed of, or stored on, under or at
<br />the Land, whether by accident, burying, drainage, or storage in containers, tanks, holding
<br />areas, or any other means; (vi) the Land has never been used as a dump or landfill; and (vii)
<br />Trustor has disclosed to Beneficiary all information, records, and studies in Trustor's
<br />possession or reasonably available to Trustor relating to the Land concerning Hazardous
<br />Materials.
<br />Trustor shall not cause or permit any Hazardous Material (as defined in Section 9.3 of
<br />the Loan Agreement ) to be brought upon, kept, stored or used in, on, under, or about the Land
<br />by Trustor, its agents, employees, contractors or invitees except for incidental supplies
<br />ordinarily used in the construction and operation of residential developments in compliance
<br />with all applicable laws, and shall not cause any release of Hazardous Materials into, onto,
<br />under or through the Land. If any Hazardous Material is discharged, released, dumped, or
<br />spilled in, on, under, or about the Land and results in any contamination of the Land or
<br />adjacent property, or otherwise results in the release or discharge of Hazardous Materials in,
<br />on, under or from the Land, Trustor shall promptly take all actions at its sole expense as are
<br />necessary to comply with all Environmental Laws (as defined below).
<br />Trustor shall indemnify, defend (with counsel reasonably acceptable to Beneficiary),
<br />and hold Beneficiary and its elected and appointed officials, officers, agents and employees
<br />(collectively, "Indemnitees") harmless from and against any and all loss, claim, liability,
<br />damage, demand, judgment, order, penalty, fine, injunctive or other relief, cost, expense
<br />(including reasonable fees and expenses of attorneys, expert witnesses, and other professionals
<br />advising or assisting Beneficiary), action, or cause of action (all of the foregoing, hereafter
<br />individually "Claim" and collectively "Claims") arising in connection with the breach of
<br />Trustor's covenants and obligations set forth in this Section 7.10 or otherwise arising in
<br />connection with the presence or release of Hazardous Materials in, on, under, or from the
<br />Property. The foregoing indemnity includes, without limitation, all costs of investigation,
<br />assessment, containment, removal, remediation of any kind, and disposal of Hazardous
<br />Materials, all costs of determining whether the Land is in compliance with Environmental
<br />Laws, all costs associated with bringing the Land into compliance with all applicable
<br />Environmental Laws, and all costs associated with claims for damages or injury to persons,
<br />property, or natural resources.
<br />Without limiting the generality of the foregoing, Trustor shall, at Trustor's own cost
<br />and expense, do all of the following:
<br />a. pay or satisfy any judgment or decree that may be entered against any
<br />Indemnitee or Indemnitees in any legal or administrative proceeding incident to any matters
<br />144\259\1892893.2
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