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200314437
<br />7. COMPLIANCE WITH LAWS; HAZARDOUS MATERIALS. Borrower shall keep the
<br />Property in compliance with any and all applicable federal, state and local laws, ordinances and
<br />regulations relating to industrial hygiene or to environmental conditions on, under or about the Property,
<br />including, but not limited to, soil and ground water conditions (collectively the "Environmental Laws ").
<br />Borrower shall not use, generate, release, manufacture, store or dispose of on, under or about the
<br />Property, or transport to or from the Property, any flammable explosive, radioactive materials, asbestos,
<br />petroleum or petroleum products, hazardous wastes, toxic substances or related materials, including,
<br />without limitation, any substances defined as or included in the definition of "hazardous substances ",
<br />"hazardous wastes ", "hazardous materials" or "toxic substances" under any Environmental Laws
<br />(collectively referred to hereinafter as "Hazardous Materials "). Nothing contained herein shall be
<br />construed so as to limit Borrower's ability to use and store janitorial and office supplies in reasonable
<br />quantities on the Property, provided such supplies are employed, stored and disposed of in accordance
<br />with all Environmental Laws. Borrower hereby warrants and represents to Lender, that there are no
<br />hazardous Materials on or under the Property. Borrower hereby agrees to indemnify and hold harmless
<br />Lender, its directors, officers, employees, and agents, and any successors to Lender's interest, from and
<br />against any and all claims, damages and liabilities arising in connection with the presence, use, storage,
<br />release, disposal or transport of any Hazardous Materials on, under, from or about the Property,
<br />including, without limitations, (i) all damages directly or indirectly arising out of the use, generation,
<br />storage or disposal of Hazardous Materials by Borrower or any prior owner or operator of the Property or
<br />any other person, including an adjacent property owner or operator, and (ii) all costs of any required or
<br />necessary repair, remediation, clean -up or detoxification and the preparation of any closure or other
<br />required plans, whether such action is required or necessary prior to or following transfer of title to the
<br />Property, to the full extent that such action is attributable, directly or indirectly, to the presence or use,
<br />generation, storage, release, threatened release or disposal of Hazardous Materials by any person on or
<br />under the Property prior to transfer of title thereto by Lender. THE FOREGOING WARRANTIES AND
<br />REPRESENTATIONS, AND BORROWER'S OBLIGATIONS PURSUANT TO THE FOREGOING
<br />INDEMNITY, SHALL SURVIVE REPAYMENT OF THE NOTE AND THE RECONVEYANCE OF
<br />THIS SECURITY INSTRUMENT.
<br />At any time that Lender reasonably suspects the presence of Hazardous Materials, in, on, under,
<br />from or around the Property (except with respect to any Hazardous Materials used in the ordinary course
<br />of business of Borrower or the tenants of the Property, with respect to which use there has been no
<br />violation of Environmental Laws) or upon and after any Event of Default hereunder, Lender shall have
<br />the right to require Borrower, at the sole cost and expense of Borrower, to employ a qualified
<br />independent environmental firm, acceptable to Lender, to conduct an environmental assessment of the
<br />Property to determine whether there is any Hazardous Material above, in, on, under, from or around the
<br />Property, such that the Property, any activity related to the Property, or the Hazardous Materials is
<br />subject to regulation under Environmental Laws. Lender shall instruct such environmental firm to
<br />conduct such assessment in such a manner as to minimize interference with the operation of the Property.
<br />8. BANKRUPTCY. The parties agree that Borrower has substantial duties of performance
<br />apart from its mere financial obligations under the Security Instrument, the Note and other Loan
<br />Documents or obligations which this Security Instrument secures, and that parties other than the
<br />Borrower could not adequately and fully perform the covenants to be performed by Borrower in this
<br />Security Instrument. The parties also agree that this Security Instrument is an agreement for the making
<br />of loans and for the extending of debt financing or financial accommodations. No assumption of or
<br />assignment of this Security Instrument shall be allowed in bankruptcy. Should an assumption of or
<br />assignment of this Security Instrument be permitted in violation of this covenant, the parties agree that
<br />Lender will not have adequate assurance of performance unless and until Lender is allowed access to
<br />adequate financial and other information to satisfy itself that the trustee or proposed assignee is fully able
<br />to assume the financial and personal covenants of Borrower under this agreement, in full accordance
<br />with its terms. The parties further agree that the definition of the term "adequate assurance" as set forth
<br />in the United States Bankruptcy Code, as amended, shall be applicable directly or by analogy to any
<br />determination of adequate assurance in connection with this Security Instrument.
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