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<br />The City of San Marcos Facilities Service Contract <br /> <br />(F) Governmental Approvals. The City has obtained or will obtain in the <br />course of its performance hereunder, the Governmental Approvals which the City must obtain <br />in its own name as required under this Service Contract. <br />(G) Claims and Demands. Except as disclosed in writing to the Company, to <br />the best of its knowledge, there are no material and adverse claims or demands based in <br />environmental, contract or tort law pending or threatened against the City with respect to the <br />Facilities. <br /> <br />(H) Applicable Law Compliance. To the best of its knowledge (1) the City is <br />not in material violation of any Applicable Law pertaining to the Facilities, and (2) the City has <br />not received notice of a violation or an alleged violation of any such Applicable Law. <br />(I) Hazardous Materials and Regulated Substances. To the best of its <br />knowledge and without having undertaken any specific inquiry or investigation in connection <br />with making this representation, there are no pre-existing Hazardous Materials or Regulated <br />Substances present upon or beneath the Facilities except those substances which are typically <br />present at wastewater treatment facilities for their intended use in the operation and <br />maintenance of such facilities. <br />(J) Information Supplied bv the City. The information supplied and <br />representations and warranties made by the City are true, correct and complete to the best of <br />the City's knowledge. <br />SECTION 2.2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. <br />The Company represents and warrants that: <br />(A) Existence and Powers. The Company is a corporation duly organized, <br />validly existing and in good standing under the laws of the State of California, with the full <br />legal right, power and authority to enter into and perform its obligations under this Service <br />Contract. <br /> <br />(B) Due Authorization and Binding Obligation. This Service Contract has <br />been duly authorized, executed and delivered by all necessary corporate action of the Company <br />and constitutes a legal, valid and binding obligation of the Company, enforceable against the <br />Company in accordance with its terms, except to the extent that its enforceability may be <br />limited by bankruptcy, insolvency or other similar laws affecting creditors' rights from time to <br />time in effect and by equitable principles of general application. <br />(C) No Conflict. To the best of its knowledge, neither the execution and <br />delivery by the Company of this Service Contract nor the performance by the Company of its <br />obligations in connection with the transactions contemplated hereby or the fulfIllment by the <br />Company of the terms or conditions hereof: (1) conflicts with, violates or results in a breach of <br />any constitution, law or governmental regulation applicable to the Company; or (2) conflicts <br /> <br />23 <br />