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<br />1908516.2 9
<br />ARTICLE VI
<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) all foreseeable consequential
<br />damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the
<br />Property and the preparation and implementation of any closure, remedial or other required
<br />plans; and (c) all reasonable costs and expenses incurred by Beneficiary in connection with
<br />clauses (a) and (b), including but not limited to reasonable attorneys’ fees.
<br /> Without Beneficiary’s prior written consent, which shall not be unreasonably withheld,
<br />Trustor shall not take any remedial action in response to the presence of any Hazardous
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