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<br />EL185\81\983265.v1
<br />Mortgagor secured by this Mortgage. All amounts disbursed or costs incurred by Mortgagee
<br />pursuant to this paragraph shall be payable upon demand, and shall bear interest from the date of
<br />disbursement or incurrence at the rate set forth in the Note unless payment of interest at such rate
<br />would be contrary to law, in which event such amounts shall bear interest at the highest rate
<br />permitted by law. Mortgagee shall, at its option, be subrogated to any encumbrance, lien, claim
<br />or demand, and to all the rights and securities for the payment thereof, paid or discharged with
<br />the principal sum secured hereby or by Mortgagee under the provisions hereof, and any such
<br />subrogation rights shall be additional and cumulative security for this Mortgage. Nothing
<br />contained in this Section shall require Mortgagee to incur any expense or do any act hereunder,
<br />and Mortgagee shall not be liable to Mortgagor for any damages or claims arising out of action
<br />taken by Mortgagee pursuant to this paragraph.
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<br />1.9. Hazardous Materials. Mortgagor hereby represents and warrants to Mortgagee
<br />that the Mortgaged Property has not at any time been used for storage, transfer, transportation or
<br />disposal of hazardous substances, hazardous wastes, pollutants, contaminants or similar
<br />substances (collectively “Hazardous Substances”), or for the discharge of the same into the
<br />environment in violation of any law, regulation, or judicial or administrative order or judgment;
<br />and the Mortgaged Property is not contaminated by, and does not contain, any Hazardous
<br />Substances. Mortgagor will not use or permit the use of the Mortgaged Property for such
<br />purposes. Mortgagor will fully indemnify Mortgagee and defend Mortgagee against any claims,
<br />losses, damages, actions, costs and expenses of any kind, including without limitation, court
<br />costs and reasonable attorneys’ fees, in connection with any Hazardous Substances now or
<br />hereafter located on the Mortgaged Property or any other violation of any federal, state or local
<br />environmental statute, ordinance, rule or regulation (“Environmental Laws”). This indemnity
<br />shall not apply to the extent that the willful act or omission of the Mortgagee contributes to the
<br />actual or threatened discharge, dispersal, release, storage, treatment, generation, disposal or
<br />escape of the Hazardous Substances. The indemnity provisions of this Section shall survive the
<br />foreclosure or other termination of this Mortgage.
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<br />Without limiting the generality of the foregoing, Mortgagor agrees that upon the discovery
<br />of a release or threatened release of Hazardous Substances on or from the Mortgaged Property, it
<br />will promptly, diligently and without cost to Mortgagee, proceed to remediate all contamination
<br />in accordance with all applicable laws, ordinances, rules and regulations, and the requirements of
<br />all governmental authorities having jurisdiction, and otherwise to the satisfaction of Mortgagee.
<br />A failure to do so shall constitute a default by Mortgagor under this Mortgage.
<br />
<br />1.10. Escrows. Upon the request of Mortgagee after the occurrence of an Event of
<br />Default (whether or not such Event of Default is subsequently cured), Mortgagor shall deposit
<br />with Mortgagee, on the first day of each and every month, commencing with the date the first
<br />payment shall be due on the Note which is after the date of such request, a deposit to pay the
<br />Impositions and insurance premiums (collectively “Charges”) in an amount equal to:
<br />
<br />(a) One-twelfth (1/12) of the Impositions next to become due upon the
<br />Mortgaged Property; provided, however, that, in the case of the first such deposit, there
<br />shall be deposited in addition an amount as estimated by Mortgagee which, when added
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