8L
Date: August 11, 2026
To: Honorable Mayor and Members of the City Council
From: Aram Chaparyan, City Manager
Patrick Q. Sullivan, City Attorney
By: Carlos Huizar, Management Associate | [email protected] Subject: City Manager and City Attorney – Approve Second Amendment to Tolling Agreement for City-owned Property Located at 24777 Crenshaw Boulevard and Authorize City Manager to Execute Agreement. Expenditure: None.
RECOMMENDATION
Recommendation of the City Manager and City Attorney that City Council:
1. Approve a Second Amendment to Tolling Agreement between the City and SBL Auto, Inc, SBL Properties, LLC and The Adkins Family Trust for City-owned property located at 24777 Crenshaw Boulevard; and
2. Authorize the City Manager to execute the agreement.
FUNDING
None required.
DISCUSSION
The City of Torrance previously entered into and extended a Tolling Agreement with SBL Properties, LLC, SBL Auto, Inc., and the Adkins Family Trust to pause legal deadlines for lease- related environmental claims within their leasehold. The proposed Second Amendment retroactively extends this agreement from July 1, 2026 for four years, establishing a new expiration date of July 1, 2030, which maintains continuous legal protection for the City and preserves its rights without incurring premature litigation expenses. Therefore, the City Manager and City Attorney recommend that the City Council approve the Second Amendment to Tolling Agreement for the property located at 24777 Crenshaw Boulevard and authorize the City Manager to execute the agreement.
ATTACHMENT
1. Second Amendment to Tolling Agreement
1 SECONDAMENDMENTTOTOLLINGAGREEMENT
ThisSecondAmendmentToTollingAgreement(“SecondAmendment”)iseffectiveasof July1,2026(“EffectiveDate”),andismadebyandbetweentheCityofTorrance,amunicipal corporation(“City”),ontheonehand,andSBLAuto,Inc.,aCaliforniaCorporation,d/b/aSouth BayLexus,SBLProperties,LLC,aCaliforniaLimitedLiabilityCompany,andAdkinsFamily TrustEstablishedApril16,1991(collectively,“SBLParties”)ontheother.TheCityandtheSBL Partiesmayhereafterbereferredtohereinindividuallyas“Party”andcollectivelyas“Parties.”
RECITALS
A.Whereas,thePartiespreviouslyenteredintoaTollingAgreement(“InitialTolling Agreement”)totolltherunningofstatutesoflimitations,statutesofreposeandrelatedlimitation periodsthatmaygovernthefilingofclaimsagainsteachotherasaresultof“Claims”arisingout of“Contamination”assuchtermsaredefinedtherein,atrueandcorrectcopyofwhichisattached heretoasExhibit“A”;
B.Whereas,thePartiespreviouslyenteredintoaFirstAmendmenttoTolling Agreement(“FirstAmendment”)amendingtheInitialTollingAgreement,to,amongother matters,extendtheTollingPeriodtoJuly1,2026,atrueandcorrectcopyofwhichisattached heretoasExhibit“B”.Theterm“TollingAgreement”asusedherein,shallmean,collectively,the InitialTollingAgreementasamendedbytheFirstAmendment;
C.Whereas,theinitialtermundertheInitialTollingAgreement,i.e.,the“Tolling Period”,wasforaoneyearperiodandwastoexpireonJuly1,2022; B.Whereas,theFirstAmendmentextendedtheTollingPeriodsetforthintheInitial TollingAgreementbyfouryearstoJuly1,2026;
E.Whereas,withthisSecondAmendment,thePartiesdesiretoretroactivelyextend theTollingPeriodundertheFirstAmendment,fromitsexpirationdateofJuly1,2026,byfour moreyearstoJuly1,2030,sothatthereistobenolapseoftimeintheTollingPeriod,andsuch that,withthisSecondAmendment,theTollingPeriodwillruncontinuouslyfromJuly1,2021 throughJuly1,2030,unlessotherwisefurtherextendedbysubsequentamendmentsbytheParties; F.Whereas,incloseproximitytothetimethePartiesenteredintotheFirst Amendment,theyalsoenteredintoaseparateSettlementAgreement(“SettlementAgreement”), tosettlecertain“Claims”involvingthe“Contamination”,butnotincludinganyofthe“City/SBL LeaseRelatedClaims”(assuchtermsaredefinedintheFirstAmendment),whichweretoremain unaffectedbytheSettlementAgreement;
G.Whereas,theParties’SettlementAgreementwasapprovedbytheU.S.Districtin theActiononJune11,2025,andwithnoappealhavingbeentakenchallengingsuchapproval, becameeffectiveonAugust11,2025;and
H.Whereas,thetermoftheTollingPeriodisherebyextendedbythisSecond Amendment,asfurthersetforthbelow,toJuly1,2030;
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ATTACHMENT 1
2 NOWTHEREFORE,inconsiderationofthemutualpromisesandcovenantscontainedin thisSecondAmendment,thePartiesherebyagreetomodifyandamendtheTollingAgreement withthisSecondAmendment,asfollows:
1.Recitals.Alloftheforegoingrecitalsaretrueandcorrectandareincorporatedhereinby thisreference.
2.Definitions:EachcapitalizedtermusedinthisSecondAmendmentshallhavethemeaning definedaboveintheintroductoryparagraphorintheRecitals,oraspreviouslydefinedintheInitial TollingAgreementorintheFirstAmendment.
3.ExtensionofExpirationDate.TheExpirationDateoftheTollingPeriodwithrespectto City/SBLLeaseRelatedClaims,assetforthintheFirstAmendment,shallbeextendedbyfour(4) additionalyears,fromJuly1,2026toJuly1,2030,suchthatthenewExpirationDateshallbeJuly 1,2030forallsuchCity/SBLLeaseRelatedClaims,unless(i)terminatedearlierinaccordance withthetermsoftheTollingAgreement,or(ii)byoperationsoflawpursuanttoCodeofCivil Procedure(“CCP”)section360.5.
4.CompliancewithCaliforniaCodeofCivilProceduresection360.5.ThisSecond AmendmentisintendedtosatisfyCaliforniaCodeofCivilProceduresection360.5andanyother provisionoflawnecessarytoextendanystatuteoflimitationsorstatuteofrepose.
5.TerminationofTollingastoCity/SBLLeaseRelatedClaims.ThePartiesagreethatthe TollingPeriodastoanyCity/SBLLeaseRelatedClaim,shallterminateasofthenewExpiration DateofJuly1,2030.
6.Conflictswithotheragreements.IntheeventofaconflictbetweenthetermsofthisSecond AmendmentandthetermsoftheSettlementAgreement,thetermsofthisSecondAmendment shallgovern.
7.TollingAgreementterms.ExceptasotherwiseprovidedhereininthisSecond Amendment,allothertermsandprovisionsoftheInitialTollingAgreementandtheFirst Amendmentshallremaininfullforceandeffect.
8.AuthoritytoBindParties.EachpersonexecutingthisSecondAmendmentwarrantsthat heorsheisempoweredandauthorizedtosoexecutethisdocument,andhastheauthoritytofully bindtheentitiesinthemannerhereindescribed.
9.Counterparts.ThisSecondAmendmentmaybeexecutedinanynumberofcounterparts withthesameeffectasifthePartieshadsignedthesamedocument.Allcounterpartsshallbe construedtogetherandshallconstituteoneagreement.
10.EntireAgreement.ThisSecondAmendment,alongwiththeInitialTollingAgreementand theFirstAmendment,shallconstitutetheentireagreementamongthePartiesheretopertainingto thesubjectmatterthereof;fullysupersedesanyandallpriorunderstandingsand/oragreement betweenthePartieshereto,oranyofthem,pertainingtothesubjectmatterthereofandmaybe modifiedonlybywrittenagreementsignedbyallofthePartieshereto. 2590/062579-0117
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3 INWITNESSWHEREOF,eachofthePartieshaveexecutedthisSecondAmendmentonthedates indicatedbelow.
CITYOFTORRANCE,
amunicipalcorporation
Dated:
___________,2026
By:
___________________________
AramChaparyan
CityManager
SBLPROPERTIES,LLC
Dated:
___________,
2026By:
__________________________
Name:JerryLeeHeuer
Title:Manager
S.B.L.AUTO,INC.
Dated:
____________,
2026By:
Name:JerryLeeHeuer
Title:President
DEBORAHADKINS-MESSENGERAND
JERRYLEEHEUER,TRUSTEESOFTHE
ADKINSFAMILYTRUSTESTABLISHED
APRIL16,1991
Dated:
______________,
2026By:“—j’-’\
_____
Name:JerryLeeHeuer
Title:Co-Trustee
Dated:
____________,
2026By:f7jJtákd(t/(D’’(b- Nae:DeborahAdkins-Messenger
Title:Co-Trustee
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4 APPROVEDASTOFORM:
DEMETRIOU,DELGUERCIO,SPRINGER
:;RAN/
BrianD.Langa,E
AttorneysforDefendants
SBLPROPERTIES,LLC;S.B.L.AUTO,
INC.;ANDDEBORAH-ADKINS
MESSENGERANDJERRYLEEHEUER,
TRUSTEESOFTHEADKINSFAMILY
TRUSTESTABLISHEDAPRIL16,1991
PATRICKQ.SULLIVAN
CITYATTORNEY,CITYOFTORRANCE
By:
PatrickQ.Sullivan
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5 ExhibitA
6 TOLLINGAGREEMENT
ThisTollingAgreement(“Agreement”)iseffectiveasofJuly1,2021(“EffectiveDate”), andismadebetweentheCityofTorrance,amunicipalcorporation(“City”)ontheonehand,and SBLAuto,Inc.,aCaliforniaCorporation,d/b/aSouthBayLexus,SBLProperties,LLC,a CaliforniaLimitedLiabilityCompany,andAdkinsFamilyTrustEstablishedApril16,1991 (collectively,“SBLParties”)ontheother.TheCityandtheSBLPartiesmaybereferredtoherein individuallyas“Party”andcollectivelyas“Parties.”
RECITALS
A.CityownscertainrealpropertyincludingTorranceMunicipalAirport(“Airport”), locatedat3301AirportDrive,andpropertiesadjacenttotheAirport,including2600Skypark Drive,Torrance,Californiaandothers(collectivelythe“AirportProperty”).Hi-Shear Corporation,d/b/aLisiAerospace(“Hi-Shear”)currentlyleases2600SkyparkDrivefromCity (the“Property”or“Hi-ShearSite”).Hi-Shearmanufacturesaircraftandaerospacecomponents onthePropertyandhasdonesosincetheearly195Os.
B.Between2005and2018,theCityleasedthepremisesat24751and24777 CrenshawBoulevardtotheAdkinsFamilyTrust(“OriginalLessee”).In2018,Cityacknowledged assignmentofthemasterlease(“Lease”)fromtheOriginalLesseetoSBLProperties,LLC (“CurrentLessee”).
C.In2007,OriginalLesseesubleased24777CrenshawtoSBLAuto,Inc.,aCalifornia Corporation,d/b/aSouthBayLexus(“Sublessee”).In2018,Cityacknowledgedassignmentof thesubleaseagreementfromOriginalLesseetotheCurrentLessee,andthesubleaseappearsto remainoperative.
D.Citycontends,thatbeginninginorabout1954,inthecourseofconductingits businessoperationsonandwithinthevicinityoftheHi-ShearSite,Hi-Shearreceived,stored, used,generated,transported,released,dischargedand/ordisposedofvarious“hazardous substances,”“hazardousmaterials,”“hazardouswastes,”and/or“toxicchemicals,”assuchterms aredefinedunderfederalandstatelaw(collectively,“HazardousSubstances”),includingbutnot limitedto,aHazardousSubstanceknownastrichioroethylene(“TCE”),andaHazardous Substanceknownasperchloroethylene(“PCE,”alsoknownastetrachloroethylene).TCEand PCEarechemicalcompoundsthatfallwithinthegroupofchemicalsgenerallyreferredtoas halogenatedvolatileorganiccompounds(“HVOCs”).
E.OnoraboutOctober23,2017,Cityfiledalawsuit(“CityComplaint”)againstHi- ShearintheUnitedStatesDistrictCourt,inandfortheCentralDistrictofCalifornia,titled,City ofTorrancev.Hi-ShearCoiporationCaseNo.:2:17-cv-07732-DSF-JPR(CaseassignedtoHon.
DaleS.Fischer)(the“Action”)regardingtheexistenceofTCEandPCEandotherHVOC compoundsinsoil,soilvaporand/orgroundwater,withinandmigratingfromtheHi-ShearSite, includingwithinotherAirportPropertyandbeyondtheAirportProperty(collectively,the “Contamination”).
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7 F.CitycontendsitfiledtheActiontoforceHi-Sheartofullyassessandrernediatethe ContaminationinaccordancewithallapplicablefederalandStatelaws,andincompliancewith therequirementsoftheoverseeinggovernmentalagencies,includingtheCaliforniaRegional WaterQualityControlBoard,LosAngelesRegion(the“RWQCB”).
G.CitycontendsitfurtherfiledtheActiontorecoverfromHi-Shearthesubstantial responsecostsandexpensesCityhadalreadyincurredtoaddresstheContaminationcausedbythe variousreleasesoftheHazardousSubstancesbyHi-Shear.
H.InresponsetotheCityComplaint,Hi-ShearfiledaCounterclaimagainstCityand athird-partycomplaintagainstotherpartiesnamingover60thirdpartydefendants,includingSBL Parties,thatHi-ShearallegesarealsoresponsibleforreleasesofHazardousSubstancesthat contributedtotheContamination.
1.Tnitsoperativethirdamendedthird-partycomplaint,Hi-Shearallegesthat Sublessee“ownedandoperatedanautomobilebusiness”ontheleasedpremisesand“released’ orthreatenedto‘release’hazardoussubstancesatthatlocationwithinthemeaningofSection 101(22)ofCERCLA,42U.S.C.§9601(22).”Onthistheoryofliability,Hi-Shearcontendsthat theCityisalsoliableunderCERCLAbecausetheCityownsthegroundonwhichSublessee operates.
J.CitycontendsthattheLease,includingbutnotlimitedtoSection18.B,obligates SBLPartiestofullydefendandindemnifytheCityagainstanyandallofHi-Shear’sclaims, includingitsEnvironmentalClaims,asthattermisdefinedintheLease,cleanupliabilitiesrelated tohazardousmaterials,andcompliancecostsunderrelevantenvironmentallaws,asevidencedby therelevantdefinitionscontainedintheLease,specifically,“EnvironmentalClaim,” “EnvironmentalCleanupLiability,”“EnvironmentalComplianceCosts,”“EnvironmentalLaw,” and“HazardousMaterial.”
K.InitsCounterclaimagainstCity,Hi-ShearallegedthatCityispartiallyresponsible fortheContaminationbecauseofCity’sownershipoftheAirportPropertyandotherpublic propertyinandaroundtheAirport.CitycontendsthatHi-Shearhasnotalleged,however,thatany operationsconductedbytheCityitselfhavecausedorcontributedtotheContamination.
L.CityhasnotnamedanyoftheSBLPartiesasadefendantintheAction,butifHi- Shear’sallegationsaretrueasagainstSBLParties,theCitycontendsthatsaidpartiesareobligated todefendandindemnifytheCityforallattorneys’feesanddamagesandcostsincurredasaresult oftheSBLParties’actionsandomissions.
M.InJanuary2020,theRWQCBissuedCaliforniaWaterCode§13297OrderNo.
R4-2020-0003(the“JanuaryOrder”)againsttheCityandotherpartiesinrelationtotheproperty locatedtothesouth-eastoftheHi-ShearProperty(the“East-AdjacentProperties”),orderingthe namedpartiestoconductinvestigativeworkasaresultoftheContaminationthatexistsonthe East-AdjacentProperties.
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8 N.InMay2020,theRWQCBissuedasecondCaliforniaWaterCode§13267Order No.R4-2020-0035(the“MayOrder”),namingthesameentities,andalsoinvolvingthe ContaminationontheEast-AdjacentProperties.
0.OnJune18,2021,theRWQCBissuedaCleanupandAbatementOrder(“C&A Order”)No.R4-2021-0079totheCity,Hi-Shear,andothers,namingallsuchpartiesasresponsible partiesfortheContamination,andrequiringallsuchpartiestofullyinvestigate,assessandcleanup theContamination.TheJanuaryOrder,MayOrder,andtheC&AOrder,arehereaftercollectively referredtoasthe“Orders.”
P.TheCitycontendsthatithassentpreviouslytoSBLPartiesdemandsforindemnity relatingtotheContamination,pursuanttotheLease,buttheSBLPartieshavenotacceptedthe City’sdefenseoftheActionorsuchOrders,andhavenotagreedtoindemnifytheCityforthe same.
Q.Inanefforttoavoidunnecessarylitigationfeesandcostsbetweenthemselvesand toallowtheCityActionagainstHi-SheartoproceedtowardsaresolutionoftheContamination issues,theCityandSBLPartieswishtoavoidlitigationbetweenthemselves,andtothus,tollall oftheirpotentialclaims,rights,causesofaction,anddemandseachmayhaveagainsttheother thatconcernorinanywayrelatetotheContamination.
R.Assuch,thePartieswishtoenterintothisTollingAgreementassetforthherein.
NOWTHEREFORE,inconsiderationofthemutualpromisesandcovenantscontainedin thisAgreement,andinrelianceupontherepresentationsandcovenantsmadebyCityandSBL Partieshereunder,thesufficiencyofwhichareacknowledged,thePartiescovenantandagreeas follows:
1.Recitals.Alloftheforegoingrecitalsaretrueandcorrectandareincorporatedhereinby reference.
2.Tolling.ThePartiesagreethatallstatutesoflimitationsorrepose,periodoflaches,and anyotherstatute,law,ruleorprincipleofequity,estoppelorwaiver,oforhavingsimilar effectrelatingtotimelimitations(collectively,“StatuteofLimitations”)applicabletoany rights,claims,causesofaction,counterclaims,crossclaimsanddefensesregarding,based upon,relatedtoorarisingoutoftheContamination(whetherknownorunknown),the Orders(whetherknownorunknown)ortheAction(whetherknownorunknown)that eitherPartyhasormayhaveagainsttheotherParty(the“Claims”),specificallyincluding allClaimsarisingoutoftheLeases,shallbesuspendedandtolledassetforthherein. a.ThetollingperiodshallcommenceontheEffectiveDate,andshallexpireoneyear followingtheEffectiveDate(“ExpirationDate”),unless(i)terminatedearlierin accordancewiththisAgreementor(ii)byoperationsoflawpursuanttoCodeof CivilProceduresection360.5.
b.TheExpirationDatemaybeextendeduponthemutualwrittenconsentofthe Parties,incompliancewiththetermsofCodeofCivilProceduresection360.5. 2867/062579-0132
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9 C.TheperiodfromandincludingtheEffectiveDateoftheAgreementuntilthe ExpirationDate,oranyearlierTerminationDateafternotice(collectively,the “TollingPeriod”),shallnotbeconsideredinanydeterminationofthetimelinessof thecommencementofanyactionorproceedingwithrespecttothesubstanceofthis Agreement.
d.NothinginthisAgreementshallreviveanyClaimwhich,asoftheEffectiveDate, wouldhavebeenbarredorprecludedbytheexpirationofanyStatuteof Limitations,includingbutnotlimitedto,bytheexpirationofanyapplicablestatute oflimitationsortheequitabledoctrinesoflaches,estoppel,waiverorotherdefense basedonthepassageoftime.
e.ThisAgreementshallnotlimitoraffectanydefensebasedonanystatuteof limitations,estoppel,waiverorothersimilardefense,totheextentsuchdefenseor defensesarenotbasedonthepassageoftimeoccurringduringtheTollingPeriod. f.ThisAgreementisintendedtosatisfyCaliforniaCodeofCivilProceduresection 360.5andanyotherprovisionoflawnecessarytoextendanystatuteofTimitations orstatuteofrepose.
3.NoAdmissionofLiability.ThisAgreementshallnotbeconstruedasanadmissionofany factoractualorpotentialliabilityonthepartofanyParty.ThisAgreementmaynotbe offeredasevidenceofanadmissionofanyliabilityorfactinanycourtproceedings.
4.Termination.AnyPartymayterminatethisAgreementpriortotheExpirationDateby deliveringwrittennoticetotheotherPartyassetforthherein.Noticeshallbesentby certifiedmail,returnreceiptrequested.Theterminationshallbedeemedeffectivethirty (30)daysafterreceiptoftheterminationnotice(“TerminationDate”).
5.BindingEffect.ExceptasotherwiseprovidedinthisAgreement,thisAgreementisbinding uponandinurestothebenefitofthePartiesandtheirrespectivesuccessorsandpermitted assigns.Exceptasexpresslyprovidedherein,nothinginthisAgreementisintendedto conferonanyperson,otherthanthePartiesheretoandtheirrespectivesuccessorsand permittedassigns,anyrightsorremediesunderorbyreasonofthisAgreement.
6.AuthoritytoBindParties.EachpersonexecutingthisAgreementwarrantsthatheorshe isempoweredandauthorizedtosoexecute,andhastheauthoritytofullybindtheentities inthemannerhereindescribed.
7.Notices.Anyfurthernoticesshallbedelivered:
TOSBLPARTIES:
Mr.JerryLeeHeuer
S.B.L.Auto,Inc.
24777CrenshawBoulevard
Torrance,CA90505
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10 WITHACOPYTO:
BrianD.Langa
915WilshireBoulevard,Suite2000
LosAngeles,CA90017
Tel:(213)624-8407
E-mail:blanga(ddsffirm.com
TOCITY:
CityofTorrance
3031TorranceBoulevard
Torrance,CA90503
Attn:CityAttorney
WITHACOPYTO:
AlanFenstermacher
Rutan&Tucker,LLP
I8575JamboreeRoad,9t1Floor
Irvine,CA92612
[email protected]
8.GoverningLaw.ThisAgreementshallbegovernedandconstruedinaccordancewiththe lawsoftheStateofCalifomiaandisbindingupontheParties.
9.Counterparts.ThisAgreementmaybeexecutedinanynumberofcounterpartswiththe sameeffectasifthePartieshadsignedthesamedocument.Allcounterpartsshallbe construedtogetherandshallconstituteoneagreement.
10.EntireAgreement.ThisAgreementconstitutestheentireagreementamongtheParties heretopertainingtothesubjectmatterthereoffullysupersedesanyandallprior understandingsand/oragreementbetweenthePartieshereto,oranyofthem,pertainingto thesubjectmatterthereof;andmaybemodifiedonlybywrittenagreementsignedbyall ofthePartiesthereto.
11.Captions.ThecaptionsofthisAgreementareforconvenienceonlyandarenotapartof thisAgreementanddonotinanywaylimitoramplifythetermsandprovisionsofthis Agreement.
[SignaturesonFollowingPage]
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11 INWITNESSWHEREOF,thePartieshavecausedthisAgreementtobeexecutedasset forthbelow.
SElLPARTIES:
SBLAuto.Inc..aCaliforniaCorporation.dfh/aSouthBayLexus
By:_______
JerryLeeeur,President
SBLProperties,LLC,aCaliforniaLimitedLiabilityCompany
JetTyLeHeer,Manager
TheAdkinsFamilyTrustEstablishedApril16,1991
JerryLJeHier,Trustee
APPROVEDSTOFORM:
CITYOFTORRANCE:ATTEST:
By:_________
AramChaparyanRebeccaPoirier
CityManagerCityClerk
APPROVEDASTOFORM:
By:ec(L&
PatrickSullivan
CityAttorney
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12 INWITNESSWHEREOF,thePartieshavecausedthisAgreementtobeexecutedasset forthbelow.
SBLPARTIES:
SBLAuto,Inc.,aCaliforniaCorporation,d/b/aSouthBayLexus
By:_________________
JerryLeeHeuer,President
SBLProperties,LLC,aCaliforniaLimitedLiabilityCompany
By:_________________
JerryLeeHeuer,Manager
TheAdkinsFamilyTrustEstablishedApril16,1991
By:________________
JerryLeeHeuer,Trustee
APPROVEDASTOFORM:
By:_________________
CITYOFTORRANCE:ATTEST:
By:____________________By:__________
AramChaparyanRebeccaPoirier
CityManagerCityClerk
APPROVEDASTOFORM:
By:_________________
PatrickSullivan
CityAttorney
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13 ExhibitB
14 FIRSTAMENDMENTTOTOLLINGAGREEMENT
ThisFirstAmendmentToTollingAgreement(“FirstAmendment”)iseffectiveasof January1,2025(“EffectiveDate”),andismadebyandbetweentheCityofTorrance,amunicipal corporation(“City”),ontheonehand,andSBLAuto,Inc.,aCaliforniaCorporation,d/b/aSouth BayLexus,SBLProperties,LLC.aCaliforniaLimitedLiabilityCompany,andAdkinsFamily TrustEstablishedApril16,1991(collectively,“SBLParties”)ontheother.TheCityandtheSBL Partiesmayhereafterbereferredtohereinindividuallyas“Party”andcollectivelyas“Parties.”
RECITALS
A.Whereas,thePartiespreviouslyenteredintoaTollingAgreement(“Tolling Agreement”)totolltherunningofstatutesoflimitations,statutesofreposeandrelatedlimitation periodsthatmaygovernthefllingofclaimsinconnectionwiththatlawsuitentitledCityof Torrancev.Hi-ShearCorporation.et.al.CaseNo.2-17CV-O7732-FWS4PR,withtheeffective dateofJuly1,2021,atrueandcorrectcopyofwhichisattachedheretoasExhibit“A”; B.Whereas,sincethePartiessignedtheTollingAgreement,Hi-Shearhasamended itsThirdAmendedThird-PartyComplainttwomoretimes,andthereforetheoperativeHi-Shear ThirdPartycomplaintistheHi-ShearFifthAmendedThirdPartyComplaint; C.Whereas,theinitialtermoftheTollingAgreementwasforaoneyearperiodand wastoexpireonJuly1,2022;
D.Whereas,withthisFirstAmendment,thePartiesdesiretoretroactivelyextendthe termoftheTollingAgreementfromitsexpirationdateof’July1,2022,byfouryearstoJuly1, ..
2026,sothatthereistobenolapseinthetermoftheTollingAgreement.andsuchthat,withthis FirstAmendment,thetoIlingwillruncontinuouslyfromJuly1,2021untilJuly1,2026,unless otherwisefurtherextendedbysubsequentamendmentsbytheParties; EWhereasinclosepioximitytothetimethePartiesareenteringintothisFirst Amendment,theyarealsoenteringintoaseparateSettlementAgreement(“Settlement Agreement”),tosettletheir“Claims”involving“Contamination”(assuchtermsaredefined below),exceptfor“CitySBLLeaseRelatedClaims”(alsodefinedbelow)whichwilLremain unaffectedbytheSettlementAgreement;
F.Whereas,itistheParties’intentwiththisFirstAmendment,toextendthetermof theTollingAgreementbyfouryearstoanewTerminationDateofJuly1,2026,exceptthat,ifthe Parties’SettlementAgreementintheActionbecomeseffective,asofthatdate(the“Settlement EffectiveDate”),onlytheCity/SBLLeaseRelatedClaimsshallremaintolleduntilthenew TerminationDateofJuly1,2026;and
G.Whereas,thetermsoftheTollingAgreementareherebyamendedbythisFirst Amendment,asfurthersetforthbelow;
NOWTHEREFORE,inconsiderationofthemutualpromisesandcovenantscontainedin thisFirstAmendment,thePartiesagreetomodifyandamendtheTollingAgreementwiththis FirstAmendment,asfollows:
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15 IRecita[s.Alloftheforegoingrecitalsaretruearidcorrectandareincorporatedhereinby thisreference.
2.Definitions:EachcapitalizedtermusedinthisFirstAmendmentshallhavethemeaning definedaboveintheintroductoryparagraphandintheRecitals,orasdefinedbelow,andifaterm thatwaspreviouslydefinedintheTollingAgreementisfurtherdefinedinthisFirstAmendment, thenthedefinitioncontainedinthisFirstAmendmentshallgovern:
a.‘Action”meansthatactionentitledCityofTorrancev.Hi-ShearCorporation,et. a!.CaseNo.2-17-CV-07732-FWS4PR,andallcounterclaims,cross-claimsandthir&party complaintsfiledinconnectiontherewith.
b.“City/SBLLcascRelatedClaims”meansanyandallClaimsthatconcernorrelateto ContaminationonormigratingtoorfromtheSite,thathavebeenormayinthefuture beassertedbytheCityagainstanyoftheSBLPartiesunderthetermsofanyCity/SBL Lease,orbyanySBLPartyagainsttheCityunderthetermsofanyCitySBLLease, includinganyClaimsarisingoutoforrelatedtodisclosuresconcerning Contaminationmade(orallegedlyfailedtohavebeenmade)involvingthe ContaminationinconnectionwithnegotiatingandenteringintoanyCity/SBLLease.
C.“City:’SBLLease”meansanyandallexistingorpriorleaseorsubleaseagreements enteredintoatanytimebyandbetweentheParties,thatconcernorrelatetoreal propertylocatedwithintheSite.
d.“Claims”meansallpast,presentandfuturerights,duties.claims,obligations,actions, causesofaction,suits,judgments.debts.damages,penalties,costs,fees,expenses, harms,injuries,liabilities,demands,notices,andadministrativeactions,claimsor orders(includingwithoutlimitationrecoupmentorsetoff),ofwhatsoeverkindor nature,whetherknownorunknown,suspectedorunsuspected.patentorlatent,fixed orcontingent,maturedorunmatured,liquidatedorunliquidated,andwhetheratlaw orinequity,orsoundingincontract,tortorstatute,orseekinglegaldamages, injunctiverelieforotherequitableordeclaratoryrelief.
e.“Contamination”meansthepresenceofcertainhalogenatedvolatileorganic compounds(“IIVOCs”)knownastrichloroethylene(“TCE”),perchioroethylene,aka tetrachloroethylene(“PCE”)and/orI,I.Itrichioroethane(“TCA”),andanyadditive chemicalproductstheretoandbreakdowndaughterchemicalstherefrom,alongwith otherchemicalsubstancesknownasperchlorate,1,4-dioxane,per-and polyfluoroalkylsubstances,metalsandtotalpetroleumhydrocarbons,andallother chemicalsubstancesthatareorinthefuturemaybedesignatedasa“hazardous substance”andlora“hazardouswaste”undertheComprehensiveEnvironmental Response,Compensation,andLiabilityAct(”CERCLA”—42U.S.C.§9601etseq.), theResourceConservationandRecoveryAct(“RCRA”—42USC§6901etseq.),the CaliforniaHazardousSubstancesAccountAct(“HSAA”or“CaliforniaSuperfluid” Cal.Ilealth&SafetyCode§78000,etseq.,formerly§25300et.seq.),orasa“waste” asdefinedinSection13050oftheCaliforniaWaterCode,andexistinginsoil,soil gas,soilvapor,ambientair,and/orsurfacewaterorgroundwater,at,withinand 2$)()O(2579-t)I7
2151234ii3a0$1225
16 migratingtoorfromthosepropertieslocatedat2600SkyparkDrive,Torrance,CA (1iShearProperty’);2700SkyparkDrive,Torrance,CA(LowesProperty”):
24751and24777CrenshawBoulevard,Torrance.CA(“PropertyI“):24707.24747 and24701CrcnshawBoulevard.Torrance,CA(“Propcrty2”):and2530and2540 SkyparkDrive,Torrance,CA(“Property3”).PropertiesI,2and3areeastand adjacenttotheHi-ShearPropertyandarehereaftercollectivelyreferredtohereinas the“EastAdjacentProperties”or“EAProperties.”
j:•“SettlementEffectiveDate”meansthedarethatanySettlementAgreementofthe ActionenteredintobyandbetweenthePartieshereto,becomes‘effective”perits terms.
g.“Site”meanstheHi-ShearProperty,theLowesPropertyandtheEAProperties,and allotherpropertieswhereContaminationhasmigratedfromtheHi-ShearProperty, theLowesPropertyand;ortheEAProperties.
3.ExtensionofExpirationDatTheExpirationDateoftheTollingPeriodassetforthinthe TollingAgreement,shallbeextendedbyfour(4)additionalyears,fromJuly1,2022to July1,2026,suchthatthenewExpirationDateshallbeJuly1,2026,unless(I)terminated earlierinaccordancewiththetermsoftheTollingAgreement.or(ii)byoperationsoflaw pursuanttoCodeofCivilProcedure(“CCP”)section360.5.
4_CompliancewithCaliforniaCodeofCivilProceduresection360.5.ThisFirstAmendment isintendedtosatisfyCaliforniaCodeofCivilProceduresection360.5andanyother provisionoflawnecessarytoextendanystatuteoflirnitationsorstatuteofrepose.
5.TerminationofTolljpjastoCoveredClaims.ThePartiesagreethattheTollingPeriodas toanyClaimsrelatingtoorarisingoutoftheContamination(whetherknownorunknown), theOrders(whetherknownorunknown)ortheAction(whetherknownorunknown),that eitherPartyhasormayhaveagainsttheotherParty(“CoveredClaim”),includingany City/SBLLeaseRelatedClaim,shallterminateasoftheExpirationDate,provided howeverthatintheeventtheSettlementAgreementbecomeeffective,thenasofthe SettlementEffectiveDate,theTollingPeriodshallterminateastoallCoveredClaims exceptforanyCitySBLLeaseRelatedClaim.ItistheintentofthePartiesthatregardless oftheSettlementAgreementbecomingeffective,theTollingAgreementandthisFirst AmendmentshallremaininfullforceeffectastoallCity/SBLLeaseRelatedClaims.
6.Conflictswithotheragreements.IntheeventofaconflictbetweenthetermsofthisFirst AmendmentandthetermsoftheSettlementAgreement.thetermsofthisFirstAmendment shallgovern.
7.plingAgreementterms.ExceptasotherwiseprovidedhereininthisFirstAmendment, allothertermsandprovisionsoftheTollingAgreementshallremaininfullforceandeffect.
8.AuthoritytoBindParties.EachpersonexecutingthisFirstAmendmentwarrantsthathe orsheisempoweredandauthorizedtosoexecutethisdocument,andhastheauthorityto fullybindtheentitiesinthemannerhereindescribed.
25UO(,2579-OH7
215123483W31225——
17 9.Countearts.ThisFirstAmendmentmaybeexecutedinanynumberofcounterpartswith thesameeffectasifthePartieshadsignedthesamedocument.Allcounterpartsshallbe construedtogetherandshallconstituteoneagreement.
10.EntireAgreement.ThisFirstAmendment,alongwiththeTollingAgreement,shall constitutetheentireagreementamongthePartiesheretopertainingtothesubjectmatter thereof;fullysupersedesanyandallpriorunderstandingsand/oragreementbetweenthe Partieshereto,oranyofthem,pertainingtothesubjectmatterthcreofandmaybemodified onlybywrittenagreementsignedbyallofthePartieshereto.
[SignaturesonFollowingPage)
25’O062579-(H17
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18 [NWITNESSWHEREOF,eachofthePartieshaveexecutedthisAgreementonthedatesindicated beiow.
CITYOFTORRANCE,
amunicipalcorporation
Dated:2025By:
AramChaparya
CityManager
SBLPROPERTIES,LLC
Dated:Marchl8_,2025
____________________
Name:Heuer
Title:___
S.B.L.AUTO,INC.
Dated:_rQtLI_S._2025By:
Name:JrvLeHeir.
Title:President
DEBORAHADKINS.MESSENGERAND
JERRYLEEHEUER,TRUSTEESOFTHE
ADKINSFAMILYTRUSTESTABLISHED
APRIL16,1991
Dated:rh18_,2025By:
____
Name:‘JyLeeHeuer
Title:CoTrustee
Dated:Mrchj2025By:J
Name:-DeborahAdkins-Messener
Title:Co-Trustee
25O06257%-Ui7
2l52333i03225
19 APPROVEDASTOFORM:
DEMETRIQU,DELGUERCIC,SPRINGER
&FRANCIS,LLP42
By:
________
BrianD.Langaq.
AttorneysforDefendants
SBLPROPERTIES,LLC;S.B.L.AUTO,
INC.;ANDDEBORAHADKINS
MESSENGERANDJERRYLEEHEUER,
TRUSTEESOFTHEADKINSFAMILY
TRUSTESTABLISHEDAPRIL16,1991
PATRICKQ.SULLIVAN
CITYATTORNEY,CITYOFTORRANCE
By:24J-
‘(—
Patrick0.Sullivan
253()O(257)-)1
2I5I23343a()3I2
20