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21. Environmental and Toxics Warranty. The covenants, warranties and representations set forth below will be effective continuously during SCOA's construction of the Levee Improvements and following cessation of labor for any reason, including, without limitation, completion of the Levee Improvements. SCOA covenants, warrants and represents to City that: (a) to its knowledge after due inquiry, no Hazardous Materials were discovered on or about the Levee Improvements or Property or City Property prior to SCOA's design and construction of the Levee Improvements except as disclosed to City in writing; (b) if any such Hazardous Materials are discovered during performance of the Levee Improvements or after completion thereof, SCOA will exercise commercially reasonable efforts to fully remediate such Hazardous Materials and take all necessary steps to obtain no further action letter(s) from the applicable regulatory agency(ies) exercising jurisdiction over such remediation work; (c) SCOA's operations concerning site preparation and grading of the Property and City Property and the design and construction of the Levee Improvements are and were not in violation of any Environmental Law and no notice from any governmental body has been served upon SCOA or Owners claiming any violation of any such Environmental Law, or requiring or calling attention to the need for any remedial work in order to comply with any such Environmental Law, with which SCOA has not complied; and (d) if there are any such notices with which SCOA has complied, SCOA will provide City with copies thereof. 22. Warranty. City will have the right to periodically inspect the Levee Improvements after acceptance thereof to confirm conformance of the Levee Improvement work with the Final Construction Documents and performance requirements as approved by City, provided that the City shall not unreasonably interfere with the performance of the Levee Improvement work. During the three (3) year period following substantial completion of the Levee Improvements by the General Contractor in accordance with the Final Construction Documents ("Warranty Period"), SCOA shall cause all or any portion of the Levee Improvements work failing to comply with the Final Construction Documents in design, materials or workmanship to be corrected without unreasonable delay and without cost to City. Except as provided in Section 20, City will not be assuming any liability by approving, reviewing, checking, correcting, or modifying any improvement plans or related specifications or in approving, reviewing or inspecting any work or construction. To the extent that SCOA may assert a right to recovery against another party under one or more of the Design and Construction Agreements (defined in Section 23), City will be a third party beneficiary of such recovery right. If SCOA fails to comply with its Warranty Period obligations, City may access SCOA's warranty security. 23. City as Third Party Beneficiary. City will be an intended third party beneficiary of the rights of SCOA with respect to agreements entered into by the SCOA with design, engineering, construction, or other professionals for the purposes of performing the work of design and construction of the Levee Improvements ("Design and Construction Agreements"). For all Design and Construction Agreements entered into after the Effective Date of this Agreement, SCOA will include a provision granting to the City the right of assignment in the event of a SCOA Default under this Agreement. 24. Default. SCOA will be in default under this Agreement if (i) SCOA fails to perform one or more material requirements in the Agreement or violates any material legal OAK #4819-4834-1908 v20 26