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of any order or decree or result in the breach of any contract or agreement to which <br />the City is at present a party or by which the City is bound. <br />(b) To City's actual knowledge, no litigation and no governmental, administrative or <br />regulatory act or proceeding regarding the environmental, health and safety aspects <br />of the City Property is pending, proposed or threatened. <br />(c) City will not enter into any agreements or undertake any new obligations prior to <br />Close of Escrow that will in any way burden, encumber or otherwise affect the City <br />Property without the prior written consent of Mendez. <br />(d) City is aware of its obligation under California Health and Safety Code Section <br />25359.7 to disclose any knowledge which they may have regarding any release of <br />Hazardous Substances (as defined by applicable federal, state and local statutes, <br />rules and regulations) upon or under the City Property. The City Property remains <br />subject to ongoing environmental assessment under the oversight of the Santa Ana <br />Regional Water Quality Control Board, Case No. 083003012T, including the <br />presence of groundwater monitoring wells. Shell Oil Company is the responsible <br />party for the environmental remediation. <br />(e) To the best of City's knowledge the City Property complies with all applicable laws <br />and governmental regulations including, without limitation, all applicable federal, <br />state, and local laws pertaining to air and water quality, hazardous waste, waste <br />disposal, and other environmental matters, including, but not limited to, the Clean <br />Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource <br />Conservation Recovery and Comprehensive Environmental Response <br />Compensation and Liability Acts, and the California Environment Quality Act, and <br />the rules, regulations, and ordinances of the City, the California Department of <br />Health Services, the Regional Water Quality Control Board, the State Water <br />Resources Control Board, the Environmental Protection Agency, and all applicable <br />federal, state, and local agencies and bureaus. <br />(f) City, as a government agency, has not been subject to real property tax assessment <br />on the City Property. Transfer of title to the City Property to Mendez at the Close <br />of Escrow will subject the City Property to an assessment from the Orange County <br />Office of the Assessor and shall be the obligation of Mendez henceforth. <br />4.2 Representations and Warranties of Mendez. Mendez makes the following representations <br />and warranties with respect to the Mendez Property, each of which shall survive Close of <br />Escrow: <br />(a) The execution and delivery of this Agreement, performance hereunder, and the <br />consummation of the transaction contemplated hereby will not constitute a violation <br />of any order or decree or result in the breach of any contract or agreement to which <br />Mendez is at present a party or by which Mendez is bound. <br />(b) To Mendez's actual knowledge, no litigation and no governmental, administrative <br />or regulatory act or proceeding regarding the environmental, health and safety <br />aspects of the Mendez Property is pending, proposed or threatened. <br />Page 5 of 26 <br />