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7.10.3 If any insurance policy required hereunder is canceled or the
<br />coverage provided thereunder is reduced, Trustor shall, within five (5) days after receipt
<br />of written notice of such cancellation or reduction in coverage, but in no event later than
<br />the effective date of cancellation or reduction, file with Beneficiary a certificate showing
<br />that the required insurance has been reinstated or provided through another insurance
<br />company or companies. Upon failure to so file such certificate,. Beneficiary may, with
<br />notice and at its option, procure such insurance coverage at Trustor's expense, and
<br />Trustor shall promptly reimburse Beneficiary for such expense upon receipt of billing
<br />from Beneficiary.
<br />7.10.4 The insurance policies required hereunder shall be issued by
<br />insurance companies authorized to do business in the State of California with a financial
<br />rating of at least A VII status as rated in the most recent edition of Best's Key Rating
<br />Guide. Each policy of insurance shall contain an endorsement requiring the insurer to
<br />provide at least thirty (30) days written notice to Beneficiary prior to change in coverage,
<br />cancellation or expiration thereof.
<br />7.11 Hazardous Materials. Trustor represents and warrants that except as
<br />disclosed to Beneficiary in writing, as of the date hereof to the current actual knowledge
<br />of Trustor's principals: (i) Trustor has received no notice, warning, notice of violation,
<br />administrative complaint, judicial complaint, or other formal or informal notice alleging
<br />that conditions on the Land are or have ever been in violation of any Environmental Law
<br />or informing Trustor that the Land is subject to investigation or inquiry regarding
<br />Hazardous Materials on the Land or the potential violation of any Environmental Law;
<br />and (ii) Trustor has disclosed to Beneficiary all information, records, and studies in
<br />Trustor's possession or reasonably available to Trustor relating to the Land concerning
<br />Hazardous Materials.
<br />Trustor shall not cause or permit any Hazardous Material (as defined below) to
<br />be brought upon, kept, stored or used in, on, under, or about the Land by Trustor, its
<br />agents, employees, contractors or invitees except for incidental supplies ordinarily used
<br />in connection with the construction, rehabilitation, repair, and operation of multi -family
<br />residential developments and in compliance with all applicable laws, and shall not cause
<br />any release of Hazardous Materials into, onto, under or through the Land. If any
<br />Hazardous Material is discharged, released, dumped, or spilled in, on, under, or about
<br />the Land and results in any contamination of the Land or adjacent property, or otherwise
<br />results in the release or discharge of Hazardous Materials in, on, under or from the
<br />Land, Trustor shall promptly take all actions at its sole expense as are necessary to
<br />comply with all Environmental Laws (as defined below).
<br />To the greatest extent permitted by law, Trustor shall indemnify, defend (with
<br />counsel reasonably acceptable to Beneficiary), and hold Beneficiary and its elected and
<br />appointed officials, officers, agents and employees (collectively, "Indemnitees")
<br />harmless from and against any and all loss, claim, liability, damage, demand, judgment,
<br />order, penalty, fine, injunctive or other relief, cost, expense (including reasonable fees
<br />and expenses of attorneys, expert witnesses, and other professionals advising or
<br />assisting Beneficiary), action, or cause of action (all of the foregoing, hereafter
<br />9
<br />OAK #4818-1017-3530 v2
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