KOTTINGER GARDENS PHASE 1 - AFFORDABLE HOUSING LOAN AGMT

(1) During Project construction,temporary signage identifying City funding and/or technical assistance must be appropriately displayed during the major portion of the construction phase. Such signage must be provided by Developer and must be pre-approved by the City in design and content. (ii) Permanent Signage must be attached to all completed projects and must be displayed in a visible, heavily trafficked area of the Project, e.g., front lobby, main entry or walkway, etc. The location of the display must be approved by the City. Permanent historical signage in the form of an 8"x 10" bronze plaque may be provided by City and may be reimbursed from Loan Proceeds as a Project cost. As an alternative, City may agree to other signage that acknowledges City, but such signage must be approved in advance. ARTICLE VII ENVIRONMENTAL MATTERS 7.1 Developer's Post-Closing Obligations. Developer hereby covenants and agrees that on and after the Closing Date: (1) Developer shall not knowingly permit the Property or any portion thereof to be a site for the use, generation, treatment, manufacture, storage, disposal or transportation of Hazardous Material or otherwise knowingly permit the presence or release of Hazardous Material in, on, under, about or from the Property with the exception of limited amounts of cleaning supplies and other materials customarily used in construction, rehabilitation, use or maintenance of residential properties similar in nature to the Project, and used, stored and disposed of in compliance with Environmental Laws. (2) Developer shall keep and maintain the Property and each portion thereof in compliance with, and shall not cause or permit the Project or the Property or any portion of either to be in violation of, any Environmental Laws. (3) Upon receiving actual knowledge of the same, Developer shall immediately advise City in writing of: (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against the Developer, or the Property pursuant to any applicable Environmental Laws; (ii) any and all claims made or threatened by any third party against the Developer or the Property relating to damage, contribution, cost recovery, compensation, loss or injury resulting from any Hazardous Material; (iii)the presence or release of any Hazardous Material in, on, under, about or from the Property; or(iv)Developer's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Project classified as "Border Zone Property" under the provisions of California Health and Safety Code, Sections 25220 et seq., or any regulation adopted in connection therewith,that may in any way affect the Property pursuant to any Environmental Laws or cause it or any part thereof to be designated as Border Zone Property. The matters set forth in the foregoing clauses (i)through (iv) are hereinafter referred to as "Hazardous Materials Claims". OAK 44822-6539-6013 v6 23