Environmental Indemnity Agreement

Exhibit 10.27



ENVIRONMENTAL INDEMNITY AGREEMENT

FOR VALUE RECEIVED, namely the loans, lines of credit, letters of credit or other financing arrangements provided by TD BANK, N.A., a banking corporation organized under the laws of the United States of America, with a place of business at One Portland Square, Portland, Maine, and a mailing address of P.O. Box 9540, Portland, Maine 04112-9540, (the "Bank") to FLOTATION TECHNOLOGIES, INC., a Maine corporation, whose address is 20 Morin Street, Biddeford, Maine 04005, under the terms and provisions of the Loan Documents, as described in and secured by a Mortgage and Security Agreement, of even date, given to the Bank on certain premises located at and near 20 Morin Street, Biddeford, Maine, (the "Premises"), the undersigned hereby unconditionally and irrevocably agrees to pay on demand to the Bank, and to reimburse defend, hold harmless and indemnify the Bank for, any and all liabilities, executions, awards, judgments, claims, damages, demands, penalties, actions, debts, suits, expenditures, indemnities, losses, charges or other amounts that are or may become due from the Bank in connection with, or arising directly or indirectly out of, any hazardous, toxic, dangerous, radioactive, noxious or unhealthful materials, substances, objects, gases, and/or wastes, including without limitation all of the following: (a) asbestos in any form; (b) urea formaldehyde foam insulation; (c) transformers or other equipment which contain dielectric fluid containing any level of polychllorinated biphenyls; (d) underground or above ground storage tanks for oil or other potentially harmful substances or (e) any other chemical, material, gas or substance which is prohibited, limited, or regulated by any federal, state, county, regional, local, or other governmental authority or which, even if not so regulated, may or could pose a hazard to or be injurious to the health or safety of the occupants of the Premises or the owners of property adjacent to the Premises or which, even though not posing a danger to hinder health or safety, may or could constitute a pollutant that could be required to be cleaned up by any governmental authority, (all of which are hereinafter referred to collectively as "Hazardous Materials") situated in, over, upon, or under said Premises mortgaged to the Bank under the terms of the aforementioned Mortgage and Security Agreement; meaning and intending hereby to assume the obligation to pay, and to indemnify and hold harmless the Bank for, without limitation, (1) all costs incurred or expended by the Bank in connection with the removal of all Hazardous Materials from said Premises, including without limitation all costs of investigation, monitoring, remedial response, removal, restoration, feasibility studies, remedial work, cleanup, engineering reports, and permit acquisitions incurred in connection therewith; (2) all costs incurred and sums expended by the Bank in determining the compliance of such removal with all applicable regulations and standards; (3) all liability of, or expense to, the Bank incurred as a result of the improper removal or disposal of Hazardous Materials from said Premises, by whomever performed, or arising out of exposure to Hazardous Materials of any individual while in or on said Premises, or otherwise in connection with the existence or removal of, or failure to remove, any and all Hazardous Materials, on or from said Premises, together with (4) all ...