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<br />Premises except: (a) as may be authorized by an agency of applicable jurisdiction, (b)
<br />for cleaning supplies and other materials in volumes and concentrations customarily used
<br />in construction, rehabilitation, use or maintenance of residential properties similar in nature
<br />to the Leased Premises, and used, stored and disposed of in compliance with Environmental
<br />Laws; and (c) as may otherwise be allowed under Environmental Laws.
<br />Lessee shall take commercially reasonable action to prevent the release of any Hazardous
<br />Materials into the environment from the Leased Premises. Such precautions shall include
<br />compliance with all Governmental Requirements with respect to Hazardous Materials. In
<br />addition, Lessee shall install and utilize such equipment and implement and adhere to such
<br />procedures as are consistent with the standards generally applied by apartment complexes in
<br />Alameda County, California, as respects the disclosure, storage, use, removal, and disposal of
<br />Hazardous Materials.
<br />Notwithstanding the obligation of Lessee to indemnify Lessor and its officers, officials,
<br />members, employees, agents, and representatives pursuant to this section, and provided no
<br />Hazardous Materials exist on the Leased Premises as a result of Lessor’s action, Lessee shall, at
<br />its sole cost and expense, promptly take (i) all actions required by any federal, state, regional, or
<br />local governmental agency or political subdivision or any Environmental Laws and (ii) all
<br />actions necessary to make full economic use of the Leased Premises for the purposes
<br />contemplated by the Regulatory Agreement, the Project Homekey Agreement and this Ground
<br />Lease, which requirements or necessity arise from the presence upon, about, or beneath the
<br />Leased Premises, of any Hazardous Materials. Such actions shall include, but not be limited to,
<br />the investigation of the environmental condition of the Leased Premises, the preparation of any
<br />feasibility studies or reports, and the performance of any cleanup, remedial, removal, or
<br />restoration work.
<br />In the event of a release of any Hazardous Materials into the environment, Lessee shall,
<br />as soon as possible after it becomes aware of the release, furnish to the Lessor a copy of any and
<br />all reports relating thereto and copies of all correspondence with governmental agencies relating
<br />to the release. Upon request of the Lessor, Lessee shall furnish to the Lessor a copy or copies of
<br />any and all other environmental entitlements or inquiries relating to or affecting the Leased
<br />Premises including, but not limited to, all permit applications, permits, and reports, including,
<br />without limitation, those reports and other matters which may be characterized as confidential.
<br />Section 10.2 Hazardous Materials Indemnification. From and after the
<br />Commencement Date, to the greatest extent allowed by law, Lessee shall indemnify, defend (with
<br />counsel reasonably approved by Lessor) and hold Indemnitees harmless from and against all
<br />Claims resulting, arising, or based directly or indirectly in whole or in part, upon (i) the release, use,
<br />generation, discharge, storage or disposal of any Hazardous Material on, under, in or about the
<br />Leased Premises, or the transportation of any such Hazardous Material to or from, the Leased
<br />Premises occurring after the Commencement Date, or (ii) the failure of Lessee, Lessee’s
<br />employees, agents, contractors, subcontractors, or any person acting on behalf of or as the invitee
<br />of any of the foregoing to comply with Environmental Laws related to the Leased Premises,
<br />unless caused by the Lessor’s active or passive negligence. The foregoing indemnity shall
<br />further apply to any residual Hazardous Materials in, on, under or about the Leased Premises or
<br />affecting any natural resources arising in connection with the generation, use, handling, DRAFT
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