Except to the extent that it would not materially adversely affect Borrower’s or any Guarantor’s condition (financial or otherwise), business, properties or assets, (a) Borrower and each Guarantor is in compliance with all federal, state and local laws, rules and regulations applicable to it including, without limitation, all pollution control and environmental regulations in each jurisdiction where it is doing business; and (b) to Borrower’s or Guarantor’s knowledge, neither Borrower nor any Guarantor has any material liability for the release or threatened release of any toxic or hazardous waste, substance or constituent into the environment.