Los Angeles Waterkeeper v. Hughes Brothers Aircrafters, Inc.

• Court: District Court, C.D. California
• Decided: November 18, 2022
• Docket: 2:22-cv-04458
• Status: Unknown

Opinion

Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 1 of 35 PagJeS I-D6 #:182

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 LOS ANGELES WATERKEEPER, a Case No. 2:22-cv-04458-DSF-JPR public benefit non-profit corporation, 12 Plaintiff, 13 ORDER 14 vs. 15 HUGHES BROTHERS AIRCRAFTERS, INC., a California corporation, 16 Defendant. 17 18 19 Good cause appearing, and the Parties having stipulated and agreed, IT IS 20 HEREBY ORDERED as follows: 21 22 Plaintiff LOS ANGELES WATERKEEPER’s claims against Defendant 23 HUGHES BROTHERS AIRCRAFTERS, INC., as set forth in the Complaint and Notice 24 of Violations and Intent to File Suit filed in this action, are hereby dismissed in their 25 entirety with prejudice, and the Court shall retain jurisdiction over the Parties for 26 purposes of dispute resolution and enforcement of the Settlement Agreement, attached 27 hereto as Exhibit A and fully incorporated by reference herein. Each of the Parties shall 28 1 se 2:22-cv-04458-DSF-JPR Document19 Filed 11/18/22 Page 2of35 Page ID#:183

, || bear its own attorneys’ and expert fees and costs, except as provided for in the > || Settlement Agreement.

PURSUANT TO STIPULATION, IT IS SO ORDERED. 6 || DATED: November 18, 2022 / / | Q, » fe cas 7 Honorable Dale S. Fischer UNITED STATES DISTRICT JUDGE 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 3 of 35 Page ID #:184

Exhibit A Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 4 of 35 Page ID #:185

Daniel Cooper (SBN 153576) 1 daniel@sycamore.law Jesse C. Swanhuyser (SBN 282186) 2 jesse@sycamore.law SYCAMORE LAW, INC. 3 1004 O’Reilly Avenue, Ste. 100 San Francisco, CA 94129 4 Tel: (415) 360-2962 5 Benjamin Harris (SBN 313193) ben@lawaterkeeper.org 6 Barak Kamelgard (SBN 298822) barak@lawaterkeeper.org 7 LOS ANGELES WATERKEEPER 360 E 2nd Street Suite 250 8 Los Angeles, CA 90012 Tel: (310) 394-6162 9 Fax: (310) 394-6178 10 Attorneys for Plaintiff LOS ANGELES WATERKEEPER 11 Melissa A. Thorme (SBN 151278) 12 mthorme@downeybrand.com DOWNEY BRAND LLP 13 621 Capitol Mall, 18th Floor, Sacramento, CA 95814-4731 14 Tel: (916) 520-5376 Fax: (916) 520-5776 15 Attorneys for Defendant 16 HUGHES BROTHERS AIRCRAFTERS, INC. 17 18 UNITED STATES DISTRICT COURT 19 CENTRAL DISTRICT OF CALIFORNIA 20 LOS ANGELES WATERKEEPER, a Case No. 2:22-cv-04458-DSF-JPR public benefit non-profit corporation, 21 STIPULATED SETTLEMENT 22 Plaintiff, AGREEMENT 23 vs. 24 HUGHES BROTHERS AIRCRAFTERS, (Federal Water Pollution Control Act, INC., a California corporation, 33 U.S.C. § 1251, et seq.) 25 Defendant. 26 27 28 STIPULATED SETTLEMENT AGREEMENT 1 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 5 of 35 Page ID #:186

1 WHEREAS, Los Angeles Waterkeeper (“LA Waterkeeper” or “Plaintiff”) is a 2 501(c)(3) non-profit public benefit corporation organized under the laws of the State of 3 California, with its main office in Santa Monica, California; 4 WHEREAS, LA Waterkeeper is dedicated to the preservation, protection, and 5 defense of the surface, ground, coastal, and ocean waters of Los Angeles County from 6 all sources of pollution and degradation; 7 WHEREAS, Hughes Brothers Aircrafters, Inc. (“Hughes” or “Defendant”) owns 8 and operates a Standard Industrial Classification (“SIC”) Code 3728 (Aircraft Parts and 9 Auxiliary Equipment) industrial facility serving the aerospace industry at 11010 Garfield 10 Place in South Gate, (“Facility”) with a total area of 1.61 acres and an industrial area of 11 approximately 1.25 acres; 12 WHEREAS, storm water discharges associated with industrial activity at the 13 Facility are regulated by the National Pollutant Discharge Elimination System General 14 Permit No. CAS000001 [State Water Resources Control Board], Water Quality Order 15 No. 2014-57-DWQ as amended on November 6, 2018 (“General Permit”), and the 16 Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq. (“Clean Water Act” or 17 “CWA”), Sections 301(a) and 402, 33 U.S.C. §§ 1311(a), 1342; 18 WHEREAS, the General Permit establishes numeric action levels (“NALs”), and 19 enforceable numeric effluent limitations (“NELs”) for facilities that discharge storm 20 water associated with industrial activities into water bodies that have certain approved 21 Total Maximum Daily Loads (“TMDLs”) with waste load allocations for industrial 22 storm water; 23 WHEREAS, the exceedance (as defined at General Permit, § V.C.1) of any NEL 24 after July 1, 2020, constitutes a violation of the General Permit and may result in the 25 imposition of Mandatory Minimum Penalties (“MMPs”) pursuant to California Water 26 Code §§ 13385(h) and (i); 27 WHEREAS, the Regional Water Quality Control Board for the Los Angeles 28 Region (“Regional Board”) issued Hughes a Time Schedule Order in 2021 (“2021 STIPULATED SETTLEMENT AGREEMENT 2 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 6 of 35 Page ID #:187

1 TSO”), Order No. R4-2021-0001, recognizing Hughes “will require additional pollutant 2 control measures to comply with the applicable NELs,” including the installation of four 3 (4) storm resistant storage containers; 4 WHEREAS, the 2021 TSO provided Hughes a time schedule to complete these 5 additional control measures until December 31, 2024, and set interim limits for total zinc 6 of 1.72 mg/L and for total lead of 0.316 mg/L that, if not exceeded, would exempt 7 Hughes from the imposition of state-issued MMPs during the term of the 2021 TSO; 8 WHEREAS, Hughes completed installation of the four (4) storm resistant 9 containers required by the 2021 TSO, but has not yet collected adequate storm water 10 data to determine if these controls will affect storm water quality; 11 WHEREAS, Hughes ordered and installed an additional storm resistant container 12 given that the four containers required by the 2021 TSO were not sufficient to isolate 13 tools and equipment containing lead and zinc from contact with storm water; 14 WHEREAS, the Regional Board did not impose any MMPs in connection with 15 the 2021 TSO, but rather waived administrative fines and penalties despite anticipated 16 violations of the General Permit; 17 WHEREAS, Plaintiff and Defendant (collectively the “SETTLING PARTIES” or 18 “Parties,” and individually a “Party”) agree that under currently applicable case law, the 19 2012 TSO does not constitute diligent prosecution or otherwise affect LA Waterkeeper’s 20 ability to pursue this enforcement action (See Friends of Mariposa Creek v. Mariposa 21 Pub. Utils. Dist., 2015 U.S. Dist. LEXIS 128783 (E.D. Cal); Citizens for a Better 22 Environment-California v. Union Oil Co. of Cal., 83 F.3d 1111 (9th Cir. 1996); Knee 23 Deep Cattle Co. v. Bindana Inv. Co. Ltd., 94 F.3d 514 (9th Cir. 1996)); 24 WHEREAS, the SETTLING PARTIES further agree that under currently 25 applicable case law, the 2021 TSO is not relevant to establishing the Court’s jurisdiction 26 over the subject matter or Parties in this action; 27 WHEREAS, on April 12, 2022, LA Waterkeeper served a notice of intent to sue 28 (“60-Day Notice Letter”) on Hughes; STIPULATED SETTLEMENT AGREEMENT 3 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 7 of 35 Page ID #:188

1 WHEREAS, on June 29, 2022, LA Waterkeeper filed a complaint against Hughes 2 in the Central District of California, Civil Case No. 2:22-cv-4458 (“Complaint”); 3 WHEREAS, Plaintiff’s 60-Day Notice Letter and Complaint alleged violations of 4 the General Permit and CWA for Defendant’s discharges of pollutants into storm drains 5 and downstream surface waters, including the Los Angeles River and the Pacific Ocean 6 (“Receiving Waters”); 7 WHEREAS, Hughes denies all allegations set forth in the 60-Day Notice Letter 8 and Complaint; 9 WHEREAS, the SETTLING PARTIES, without either adjudication of Plaintiff’s 10 claims or any admission by Defendant of any alleged violation, believe it is in their 11 mutual interest to enter into this Stipulated Settlement Agreement (“AGREEMENT”) 12 setting forth terms and conditions appropriate to resolving the allegations set forth in the 13 60-Day Notice Letter and Complaint without further proceedings; and 14 WHEREAS, all actions taken by the SETTLING PARTIES pursuant to this 15 AGREEMENT shall be made in compliance with applicable federal, state, and local 16 rules and regulations. 17 NOW THEREFORE, for good and valuable consideration, the receipt and 18 sufficiency of which is hereby acknowledged, the SETTLING PARTIES agree for 19 purposes related to this AGREEMENT as follows: 20 1. The Court has jurisdiction over the subject matter of this action pursuant to 21 Section 505(a)(1)(A) of the CWA, 33 U.S.C. § 1365(a)(1)(A). 22 2. Venue is appropriate in the Central District Court pursuant to Section 505(c)(1) of 23 the CWA, 33 U.S.C. § 1365(c)(1), because the Facility at which the alleged violations 24 are taking place is located within this District. 25 3. The Complaint states a claim upon which relief may be granted against Defendant 26 pursuant to Section 505 of the CWA, 33 U.S.C. § 1365. 27 4. LA Waterkeeper has standing to bring this action. 28 // STIPULATED SETTLEMENT AGREEMENT 4 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 8 of 35 Page ID #:189

1 5. The Court shall retain jurisdiction over this action and the SETTLING PARTIES 2 for purposes of interpreting, modifying, and/or enforcing the terms of this 3 AGREEMENT. 4 I. AGREEMENT OBJECTIVES 5 6. It is the express purpose of the SETTLING PARTIES through this AGREEMENT 6 to further the objectives of the Clean Water Act, and to resolve all issues alleged by LA 7 Waterkeeper in its 60-Day Notice Letter and Complaint. These objectives include 8 compliance with the provisions of this AGREEMENT, compliance with all terms and 9 conditions of the General Permit, and compliance with all applicable sections of the 10 Clean Water Act at the Facility. 11 7. In light of these objectives and as set forth fully below, the SETTLING PARTIES 12 agree to comply with the provisions of this AGREEMENT, and Hughes agrees to 13 comply with the applicable terms and conditions of the General Permit and all 14 applicable requirements of the Clean Water Act at the Facility. 15 II. AGENCY REVIEW AND AGREEMENT TERM 16 A. Agency Review of AGREEMENT 17 8. Agency Review. Plaintiff shall submit this AGREEMENT to the United States 18 Department of Justice and the United States Environmental Protection Agency (the 19 “Federal Agencies”), within five (5) business days of the Effective Date (defined at 20 paragraph 11) for agency review consistent with 40 C.F.R. § 135.5. The agency review 21 period expires upon approval or forty-five (45) calendar days after receipt by the 22 Federal Agencies (“Agency Approval Date”). Receipt will be evidenced by certified 23 return receipts, copies of which shall be provided to Defendant. In the event that the 24 Federal Agencies object this AGREEMENT, the Parties shall meet and confer to 25 attempt to resolve the issue(s) raised by the Federal Agencies. 26 9. Court Notice. Within three (3) business days of the Effective Date of this 27 AGREEMENT, Plaintiff shall notify the Court of settlement and of the expiration date 28 for review by the Federal Agencies, as required by 40 C.F.R. § 135.5. STIPULATED SETTLEMENT AGREEMENT 5 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 9 of 35 Page ID #:190

1 10. Case Dismissal. Within ten (10) court days of the Agency Approval Date, LA 2 Waterkeeper shall file a Stipulation to Dismiss with Prejudice and [Proposed] Order 3 (“Stipulation and Order”) pursuant to Federal Rule of Civil Procedure 41(a)(2) with the 4 District Court with this AGREEMENT attached and incorporated by reference, 5 specifying that LA Waterkeeper is dismissing with prejudice all claims in its Complaint. 6 The Stipulation and Order shall state that the District Court will maintain jurisdiction 7 over the SETTLING PARTIES for the sole purpose of resolving disputes regarding the 8 SETTLING PARTIES’ compliance with this AGREEMENT through the later of: (i) the 9 Termination Date; (ii) the conclusion of any proceeding to enforce this AGREEMENT 10 initiated prior to the Termination Date (defined at paragraph 12); or (iii) the completion 11 of any payment or affirmative duty required by this AGREEMENT. The date the Court 12 signs the Order shall be the “Dismissal Date.” 13 B. Effective Date and Termination 14 11. Effective Date. The Effective Date of this AGREEMENT shall be the date of 15 execution as evidenced by the last signature of the SETTLING PARTIES. 16 12. Termination Date. This AGREEMENT shall terminate the later of: (i) September 17 1, 2025; (ii) seven (7) calendar days from the conclusion of any proceeding or process 18 to enforce this AGREEMENT initiated prior to September 1, 2025; or (iii) seven (7) 19 calendar days from Hughes’ completion of all payments required by this 20 AGREEMENT (“Termination Date”). 21 III. FACILITY DESCRIPTION 22 13. Industrial activities conducted at the Facility include, but may not be limited to: 23 the manufacture of sheet metal assemblies for commercial aircraft; casting of zinc dies 24 and lead punches; shaping of sheet metal by hydroform press; cutting and shearing of 25 sheet metal; cleaning and grinding formed aircraft parts; and heat treatment of aluminum 26 parts. 27 14. Hughes conducts the majority, but not all, industrial activities inside buildings at 28 the Facility. STIPULATED SETTLEMENT AGREEMENT 6 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 10 of 35 Page ID #:191

1 15. Some industrial activities conducted indoors or under cover (e.g., metal melting, 2 grinding, rinsing dies) have the potential to affect the quality of storm water discharged 3 from the Facility. 4 16. Storm water currently discharges from the Facility to an inlet connected to the Los 5 Angeles County municipal separate storm sewer system on Garfield Place and is either: 6 (a) collected and pumped to one (1) of three (3) designated discharge points; or (b) runs 7 off as sheet flow (e.g., from the Shipping and Receiving area south-west of Building 8). 8 IV. COMMITMENTS OF THE PARTIES 9 A. Discharge Prohibitions 10 17. Any unauthorized non-storm water discharge, as defined in the General Permit, 11 off-site from the Facility shall be a violation of this AGREEMENT. 12 B. Storm Water Pollution Controls 13 18. Rain Gauge/Sensor. Hughes shall install an electronic rain gauge or sensor at the 14 Facility within ten (10) calendar days of the Effective Date. The rain gauge/sensor shall 15 be capable of measuring precipitation down to at least 0.1 inches, and record start/stop 16 times for all rain events. During the term of this AGREEMENT, Hughes shall collect 17 data using the gauge/sensor for all precipitation events to the nearest 0.1 inch, including 18 start/stop times. Data from the rain gauge/sensor shall be conclusive of precipitation 19 quantities and timing for purposes of this AGREEMENT absent clear data errors. 20 19. Shipping and Receiving Driveway Modification. Hughes has added a new 21 driveway sample point adjacent to Garfield Place and to the south-west of Building 8, 22 as a new sampling location (“Discharge Point 4”). Hughes shall include Discharge Point 23 4 in the SWPPP, and shall collect and analyze storm water samples from Discharge 24 Point 4. 25 20. Trench Drain Installation. If data analyses of storm water samples collected at 26 Discharge Point 4 demonstrate two (2) or more exceedances any of the numeric 27 standards for any pollutant in Table 1 (“Table 1 Standard”) during the 2022-2023 or 28 2023-2024 Reporting Years (July 1 – June 30) (e.g., at Discharge Point 4, an STIPULATED SETTLEMENT AGREEMENT 7 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 11 of 35 Page ID #:192

1 exceedance of the 0.06749 mg/L standard for copper on January 8, 2023 and an 2 exceedance of the 0.159 mg/L standard for zinc on March 18, 2024, or an exceedances 3 of the 0.094 mg/L standard for lead on December 11, 2022 and December 17, 2022), 4 Hughes shall install a trench drain (“Trench Drain”) across the driveway onto Garfield 5 Place (see Exhibit A) at the southern end of the Facility before October 1 of the wet 6 season following the Exceedance. 7 21. Trench Drain Design. The Trench Drain shall be: (i) designed to collect and be 8 capable of collecting all sheet flow from the Shipping and Receiving area; (ii) equipped 9 with StormwaterBIOCHAR filtration (or equivalent) technology; and (iii) equipped 10 with a sampling port(s) (or similar physical structure(s)) for collecting storm water 11 samples. 12 22. Connecting the Trench Drain to the Treatment System. If after installation of the 13 Trench Drain per paragraphs 20 and 21, data analyses of storm water samples collected 14 at Discharge Point 4 demonstrate one (1) or more Exceedances (as defined in paragraph 15 53) of any Table 1 Standard, then Hughes shall connect the Trench Drain to the 16 Treatment System described below. 17 23. Storm Water Treatment Plan. On or before November 21, 2022, Hughes shall 18 submit a plan (“Treatment Plan”) to LA Waterkeeper for the design and installation of a 19 storm water treatment system that includes pre-settling, polymer- or electronically- 20 assisted coagulation, followed by filtration (“Treatment System”). Hughes may propose 21 the use of an alternative treatment technology of equivalent effectiveness as 22 demonstrated by independent, third-party data, i.e., not the manufacturer's own data, for 23 pollutants listed in Table 1. 24 24. Treatment System Design. The Treatment System shall be capable of treating 25 storm water runoff generated at the Facility by an 85th percentile, 24-hour storm event 26 (as defined in the General Permit Section X.H.6), including storm water currently 27 pumped to the Facility’s three (3) discharge points, and flows from the Trench Drain 28 that may be installed at the Facility pursuant to paragraphs 20-22. The Treatment STIPULATED SETTLEMENT AGREEMENT 8 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 12 of 35 Page ID #:193

1 System shall be designed to reduce pollutant concentrations in storm water discharges 2 to comply with the Table 1 Standards, and shall be equipped with a discharge port(s) (or 3 similar physical structure(s)) for the collection of storm water samples. 4 25. The Treatment Plan must: (a) identify the company designing the Treatment 5 System, including a description of the company’s experience in designing, installing, 6 maintaining, and operating similar technology; and (b) contain a detailed description, 7 and technical analysis, of the proposed Treatment System, including its individual 8 components. If Hughes proposes to use a polymer-based system, the Treatment Plan 9 must contain a proposal and schedule for performing bench tests with candidate 10 polymers using samples of Hughes’ actual storm water to guide selection of the best- 11 performing polymer. 12 26. Treatment Plan Review. Following receipt of the Treatment Plan, LA 13 Waterkeeper shall have fifteen (15) calendar days to review, comment on, and make 14 recommendations for the Treatment Plan and Treatment System. Hughes shall 15 incorporate all comments and recommendations from LA Waterkeeper into its final 16 plan or, alternatively, provide a detailed written justification explaining why any 17 comment(s) or recommendation(s) will be not accepted and/or incorporated, and 18 resubmit the Treatment Plan to LA Waterkeeper within fifteen (15) calendar days. In 19 the event of any dispute regarding Hughes’ incorporation of and/or responses to LA 20 Waterkeeper’s comments or recommendations, either Party may invoke the Dispute 21 Resolution procedures set out in Section V of this AGREEMENT, which shall toll the 22 requirements in paragraph 27 until resolved. 23 27. Treatment System Installation. Within ten (10) weeks of its submittal of the final 24 Treatment Plan to LA Waterkeeper, Hughes shall install the Treatment System. Hughes 25 shall notify LA Waterkeeper that the Treatment System was installed within five (5) 26 calendar days of installation. 27 28. Treatment System Optimization. Hughes shall complete all activities to optimize 28 the Treatment System, including but not limited to bench-scale testing to select the STIPULATED SETTLEMENT AGREEMENT 9 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 13 of 35 Page ID #:194

1 appropriate treatment media, prior to October 1, 2023. Hughes shall notify LA 2 Waterkeeper that the Treatment System is considered optimized and fully operational 3 within five (5) calendar days of optimization and full functionality. 4 29. Treatment System Operation and Maintenance. Hughes shall retain the company 5 that designs and installs the Treatment System to train Facility staff on the proper 6 operation and maintenance, or Hughes shall contract the company to perform operation 7 and maintenance itself. 8 30. Mechanized Sweeping. During the term of this AGREEMENT, at least two (2) 9 times per week, Hughes shall complete (or cause to be completed) mechanized 10 sweeping of all indoor and outdoor industrial floor areas using a regenerative air 11 sweeper, including roofed/covered and un-roofed/covered areas and particularly the 12 Shipping and Receiving area to the south of Building 8, accessible to the mechanized 13 sweeper. 14 31. Manual Sweeping. During the term of this AGREEMENT, at least two (2) times 15 per week, Hughes shall conduct manual sweeping of all indoor and outdoor industrial 16 floor areas not accessible to the mechanized sweeper, including roofed/covered and un- 17 roofed/uncovered areas. 18 32. Elevated Surface Cleaning (With Storm Water Treatment System). Starting with 19 the 2023-2024 Reporting Year, Hughes shall employ a power washer to clean the roofs 20 of Buildings 3, 5, and 6 after September 1 and before October 15 during each year this 21 AGREEMENT is in effect. As needed, Hughes shall also power wash other buildings, 22 shed roofs (e.g., over the rinse tanks), and other above-ground surface areas capable of 23 receiving aerial deposition of industrial dust and/or emissions (e.g., containers used to 24 store dies and punches). Hughes shall capture and dispose of all rinse water generated 25 during elevated surface cleanings in accordance with, as applicable, all local, state, and 26 federal waste laws and regulations. 27 33. Storage of Dies, Punches, and Unused Equipment. All dies, punches, and other 28 equipment not specifically included in paragraph 34 shall be stored in a storm resistant STIPULATED SETTLEMENT AGREEMENT 10 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 14 of 35 Page ID #:195

1 storage container or inside one of the Facility’s buildings, or be completely tarped to 2 prevent contact with storm water, when not being actively used and during all storm 3 events. 4 34. Outdoor Storage of Hammers and Large Equipment. All equipment (e.g., large 5 hammers) that cannot be stored in a storm resistant storage container or inside one of 6 the Facility's buildings due to its size shall be elevated and completely tarped (i.e., to 7 prevent any contact with storm water) when not being actively used and during all 8 storm events. 9 35. Forklifts. Within ninety (90) calendar days of the Dismissal Date, all forklifts 10 operating outside of the Facility’s designated industrial areas shall be clearly marked 11 “OUTSIDE USE” and equipped with low zinc tires, such as Roadrunner, or other tires of 12 equivalent effectiveness and zinc concentration. Hughes shall promptly provide Plaintiff 13 with written notice of any tire changes to the forklifts designated for use outside of the 14 industrial areas of the Facility. 15 36. Coating Galvanized Surfaces. Within thirty (30) calendar days of the Effective 16 Date, Hughes shall paint all uncoated galvanized siding and roofs (including shed roofs) 17 at the Facility using Behr Semi-Gloss Paint, which can be applied directly to metal and 18 is corrosion, rust, and chemical resistant. 19 37. BMP Maintenance. Beginning on the Effective Date, Hughes shall maintain all 20 Best Management Practices (“BMPs”) and related equipment (e.g., tarps and 21 mechanical sweepers) at the Facility in good operating condition. Hughes shall repair 22 any damaged or degraded BMPs and related equipment within seventy-two (72) hours. 23 38. BMP Inspections. On a monthly basis (at approximately 30-day intervals) 24 between October 1 and April 30 of each Reporting Year during which this 25 AGREEMENT is in effect, Hughes shall complete an inspection of all BMPs (and 26 related equipment). Hughes shall record its observations from these inspections on its 27 Monthly Visual Observation Form, which shall comply with General Permit section 28 XI.A.3. In addition to any requirements of the General Permit, Hughes shall include on STIPULATED SETTLEMENT AGREEMENT 11 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 15 of 35 Page ID #:196

1 each Monthly Visual Observation Form descriptions of the status of each BMP (and 2 related equipment), and any remedial action taken pursuant to paragraph 37. 3 39. Pre-Storm Event Inspections. Beginning on the Effective Date, Hughes shall 4 complete an inspection of all BMPs—including specifically the condition of any tarps 5 covering equipment, and that the manual sweeping program is effectively removing 6 dust and debris from areas the mechanical sweeper cannot clean—during work hours 7 within the twenty-four (24) hours prior to any forecast rain event where there is a 8 greater than 50% chance of 0.1 inches or more of rain (as predicted at 9 www.wunderground.com). 10 40. Pre-Storm Event Inspection Logs. Hughes shall create a pre-storm event 11 inspection form on which staff shall record the date and time of any inspection, as well 12 as the status each BMP currently being implemented at the Facility. 13 41. Nitrate Rinse Tank. On or before the Dismissal Date, Hughes shall move the 14 nitrate rinse tank, which is currently located outside, into one of the Facility’s buildings. 15 C. Limitations on Use Areas Designated as Non-Industrial 16 42. Any industrial activity conducted in areas of the Facility designated as non- 17 industrial in the then-effective SWPPP shall be a violation of this AGREEMENT. For 18 purposes of this AGREEMENT, industrial activity shall include, but is not limited to: 19 (i) activities categorized under Standard Industrial Classification (“SIC”) codes 3728, 20 3369, 3499 and 3398; (ii) activities categorized under SIC codes 4212 and 4231, 21 including the fueling, maintenance, repair, cleaning, and/or lubricating of any vehicle; 22 and (iii) storage of equipment associated with industrial activity at the Facility, 23 including raw materials, as well as intermediate and finished products. 24 D. Storm Water Pollution Prevention Plan 25 43. SWPPP Revision. Hughes shall update its Storm Water Pollution Prevention Plan 26 (“SWPPP”) to incorporate changes related to this AGREEMENT and submit it to 27 Plaintiff within fifteen (15) calendar days of the Effective Date. 28 44. The updated SWPPP shall contain the following elements: STIPULATED SETTLEMENT AGREEMENT 12 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 16 of 35 Page ID #:197

1 a. a pollutant source assessment, including all elements required by Section 2 X.G of the General Permit as well as assessments of the potential for the 3 Facility’s storm water discharges to contain pollutants for which the 4 Receiving Waters are 303(d) listed and/or have Total Maximum Daily 5 Loads; 6 b. a description and narrative assessment of each industrial activity with the 7 potential to impact storm water quality occurring at the Facility in strict 8 compliance with Sections X.G.1 and X.G.2 of the General Permit; 9 c. descriptions of all BMPs, including those required by this AGREEMENT, 10 in accordance with Section X.H.4.a.i, ii, iii, iv, v, vi, and vii of the General 11 Permit; 12 d. a set of site maps that comply with Section X.E of the General Permit; and 13 e. a Monitoring Implementation Plan as required by Sections XI and X.I of the 14 General Permit, which shall incorporate all applicable monitoring 15 requirements detailed in Section IV.E. of this AGREEMENT. 16 45. SWPPP Review. Plaintiff shall have thirty (30) calendar days from receipt of the 17 updated SWPPP described in paragraph 44 to propose any modifications or additions. 18 Defendant shall incorporate Plaintiff’s modifications or additions to the updated 19 SWPPP within thirty (30) calendar days of notification of proposed changes, or provide 20 a detailed written justification explaining why any comment or recommendation will be 21 not accepted and/or incorporated. 22 46. SWPPP Revisions and Updating. During the term of this AGREEMENT, Hughes 23 shall revise and update the Facility’s SWPPP and/or site maps within thirty (30) 24 calendar days of any change(s) that may influence or affect storm water pollution 25 control at the Facility, including but not limited to obtaining new information regarding 26 pollutant sources, moving a discharge or sampling point, modifying the topography of 27 the site so as to change a drainage area, or removing or adding structural BMPs. Hughes 28 shall submit the revised Facility SWPPP and/or site maps to Plaintiff and shall upload STIPULATED SETTLEMENT AGREEMENT 13 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 17 of 35 Page ID #:198

1 the revised version to the Stormwater Multiple Application and Report Tracking System 2 (“SMARTS”) database. 3 47. Plaintiff may provide comments to, or seek clarification of, any revised Facility 4 SWPPP and/or site maps. Plaintiff shall have thirty (30) calendar days from receipt of a 5 revised SWPPP and/or site maps to propose any modifications or additions. Hughes 6 shall incorporate Plaintiff’s modifications or additions to the revised SWPPP and/or site 7 maps within twenty-one (21) calendar days of notification of proposed changes, or 8 provide a detailed written justification explaining why any comment or 9 recommendation will be not accepted and/or incorporated. 10 48. In the event of any dispute regarding the timing or adequacy of Hughes’ updates 11 or revisions to the Facility’ SWPPP and/or site maps, either Party may invoke the 12 Dispute Resolution procedures set out in Section V of this AGREEMENT. 13 E. Storm Water Monitoring 14 49. Hughes shall collect and analyze storm water samples from at least four (4) 15 Qualifying Storm Events (“QSEs” as defined in the Industrial General Permit) during 16 each Reporting Year per General Permit section XI.B.2, including specifically: two (2) 17 storm water samples QSEs between July and December, and two (2) storm water 18 samples from QSEs between January and June. The results of each sample shall be 19 compared to the Table 1 Standards. 20 50. Sample Collection Before Treatment System Installation. Prior to the installation 21 of the Treatment System, Hughes shall collect storm water samples during QSEs at the 22 three (3) points identified in the site map attached as Exhibit B, as well as at Discharge 23 Point 4. 24 51. Sample Collection Following Treatment System Installation. After the installation 25 of the Treatment System, Hughes shall collect storm water samples during QSEs from 26 the: 27 a. Treatment System’s discharge port(s); and 28 STIPULATED SETTLEMENT AGREEMENT 14 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 18 of 35 Page ID #:199

1 b. Unless and until the Trench Drain is connected to the Treatment System, 2 Discharge Point 4. 3 52. Requirement to Collect Samples at Additional Discharge Points. In the event 4 Hughes adds one or more discharge points anywhere at the Facility during the term of 5 this AGREEMENT, Hughes shall immediately update its SWPPP and apply the 6 sampling collection/analysis requirements contained in this AGREEMENT to such new 7 discharge point(s). 8 53. Exceedance. For purposes of this AGREEMENT, and consistent with the 9 definition in Section V.C.1. of the General Permit, an exceedance (“Exceedance”) 10 occurs when two (2) or more analytical results from samples taken for any single 11 parameter within a reporting year exceeds the applicable Table 1 Standard (e.g., an 12 exceedance of the 0.06749 mg/L standard for copper on December 8, 2023 and on 13 March 18, 2024, or two (2) exceedances of the 0.094 mg/L standard for lead at different 14 sampling locations on December 11, 2022). 15 54. During the term of this AGREEMENT, any Exceedance on or after October 1, 16 2023 shall be a violation of this AGREEMENT that will trigger the Dispute Resolution 17 provisions in Section V. 18 55. Following the installation of the Treatment System (per paragraphs 23 through 19 28), the discharge of industrial storm water from the Facility from any point other than 20 the Treatment System port(s), or Discharge Point 4 (unless and until the Trench Drain is 21 connected to the Treatment System), is a violation of this AGREEMENT that will 22 trigger the Dispute Resolution provisions in Section V. 23 56. Hughes shall, at a minimum, analyze all storm water samples collected at the 24 Facility for the parameters identified in Table 1. 25 // 26 // 27 // 28 // STIPULATED SETTLEMENT AGREEMENT 15 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 19 of 35 Page ID #:200

1 TABLE 1 Parameter Numeric Source 2 Standard 3 pH 6.0 – 9.0 SU NAL/EPA Benchmark oil & grease 15 mg/L NAL/EPA Benchmark 4 total suspended solids 100 mg/L (annual NAL 5 avg) 400 mg/L (max) 6 iron (total) 1.0 mg/L NAL 7 aluminum (total) 0.75 mg/L NAL/EPA Benchmark 8 copper (total) 0.06749 mg/L TMDL/NEL lead (total) 0.094 mg/L TMDL/NEL 9 zinc (total) 0.159 mg/L TMDL/NEL 10 nitrite + nitrate nitrogen as N 0.68 mg/L NAL/EPA Benchmark 11 12 57. Hughes shall, in addition to parameters identified in Table 1, analyze all storm 13 water samples for additional pollutants, if any, identified in a pollutant source 14 assessment conducted as part of revising the Facility’s SWPPP. 15 58. Hughes shall provide LA Waterkeeper with all storm water sampling data within 16 five (5) business days of its receipt from the laboratory during the term of this 17 AGREEMENT. When providing LA Waterkeeper with storm water sampling data, 18 Hughes shall also include all data collected by/from the rain gauge/sensor (described in 19 paragraph 18) since the last storm water sample was collected and analyzed. 20 59. Certified Laboratory. Except for pH samples, Hughes shall deliver all storm water 21 samples collected pursuant to this AGREEMENT to a California state certified 22 environmental laboratory or laboratories for analysis within the time needed for analysis 23 within laboratory method allowable hold times. The laboratory/ies shall thereafter 24 conduct analysis sufficient to detect individual constituents at or below the 25 concentrations set forth in Table 1. 26 60. Monthly Visual Observations. Hughes shall conduct monthly visual observations 27 per the General Permit section XI.A.1 to ensure adequate BMP implementation and 28 STIPULATED SETTLEMENT AGREEMENT 16 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 20 of 35 Page ID #:201

1 effectiveness. Hughes shall maintain logs for all monthly visual observation events per 2 General Permit section XI.A.3. 3 61. Sampling Event Observations. Hughes shall conduct sampling event visual 4 observations per the General Permit section XI.A.2 to ensure adequate BMP 5 implementation and effectiveness. Hughes shall maintain logs for all sampling event 6 visual observations per General Permit section XI.A.3. 7 F. Employee Training 8 62. Training Program. Within fifteen (15) calendar days of submitting its revised 9 SWPPP to SMARTS, Hughes shall review and revise its employee training program to 10 ensure compliance with the requirements of this AGREEMENT and the General 11 Permit, including any training materials, as necessary, for implementation of the 12 training program (“Training Program”). Hughes shall submit all Training Program 13 materials to LA Waterkeeper upon completion, and incorporate the Training Program 14 into its SWPPP as soon as practicable. 15 63. The Training Program shall provide: (a) that a sufficient number of employees are 16 delegated to achieve compliance with this AGREEMENT and the General Permit; and 17 (b) that these employees are properly trained to perform the required compliance 18 activities under this AGREEMENT and the General Permit. 19 64. The Training Program shall, at a minimum, include the following: 20 a. Non-Storm Water Discharge Training. Hughes shall train all non-clerical 21 employees in the General Permit’s prohibition of non-storm water 22 discharges so that employees know what non-storm water discharges are, 23 how to detect them, how to prevent them, and procedures for reporting non- 24 compliance; 25 b. Treatment System Training. As applicable, Hughes shall train employees in 26 the proper operation, management, and maintenance of the Treatment 27 System installed at the Facility; 28 STIPULATED SETTLEMENT AGREEMENT 17 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 21 of 35 Page ID #:202

1 c. Employee Designation. Hughes shall designate (by position/title) 2 employees for specific SWPPP implementation responsibilities; 3 d. Monitoring Training. Hughes shall train all individuals managing any 4 Facility Treatment System and/or collecting any samples at the Facility 5 pursuant to this AGREEMENT or the General Permit on the technical 6 protocols, including any chain of custody requirements, to ensure storm 7 water samples are properly collected, stored, and submitted to a certified 8 laboratory; and 9 e. Visual Observation Training. Defendant shall provide training to all 10 individuals performing visual observations at the Facility pursuant to this 11 AGREEMENT and the General Permit. 12 65. Language. The training and training materials shall be available and offered in the 13 language(s) in which relevant employees are fluent. If necessary, Hughes shall provide 14 a translator or translators at all trainings where such translation is likely to improve staff 15 comprehension of the Training Program and improve compliance with this 16 AGREEMENT and the General Permit. 17 66. Staff Training: Staff trainings shall be provided by a Qualified Industrial Storm 18 Water Practitioner (as defined in Section IX.A of the 2015 Permit) familiar with the 19 requirements of this AGREEMENT and the General Permit. Hughes shall, at a 20 minimum, complete: (a) annual trainings for all relevant staff/employees in September 21 of each Reporting Year; and (b) trainings for all newly hired staff/employees within 22 thirty (30) calendar days of their first day of work at the Facility. 23 67. Training Records. Hughes shall maintain training records to document compliance 24 with paragraphs 62 through 65 and shall provide LA Waterkeeper with a copy of these 25 records within fourteen (14) calendar days of receipt of a written request. 26 68. Site Inspection. LA Waterkeeper may conduct one (1) site inspection for the 27 purpose of ensuring compliance with this AGREEMENT and the General Permit during 28 the term of this AGREEMENT. STIPULATED SETTLEMENT AGREEMENT 18 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 22 of 35 Page ID #:203

1 69. Dispute-Specific Site Inspection. In the event the Parties dispute Hughes’ 2 compliance with this AGREEMENT pursuant to the Dispute Resolution procedures set 3 out in Section V of this AGREEMENT, and if a site inspection would be relevant to 4 resolving the Parties’ dispute, Hughes shall permit LA Waterkeeper to conduct an 5 additional site inspection during the term of the AGREEMENT to resolve any such 6 dispute(s). LA Waterkeeper shall not unreasonably request, and Hughes shall not 7 unreasonably deny additional site inspections. 8 70. Site Inspection Notice. Any site inspection shall occur Monday through Friday 9 between 9:00 a.m. and 4:00 p.m. LA Waterkeeper will provide Defendant with no less 10 than forty-eight (48) hours’ notice prior to any dry weather inspection, twenty-four (24) 11 hours’ notice prior to any anticipated wet weather inspection, or by Friday for a 12 Monday inspection. Notice will be provided by telephone and electronic mail to the 13 individual(s) designated below at paragraph 96. 14 71. Inspection Details. LA Waterkeeper shall limit inspection participants to three 15 individuals, all of whom agree to execute the attached Release and Waiver (Exhibit C) 16 prior to entering the Facility. During any site inspection, LA Waterkeeper’s 17 representative(s) shall be permitted to take photographs or video recordings, as well as 18 collect storm water samples. Plaintiff shall not disclose any information (e.g., photos, 19 videos, sample data) obtained as a result of a Site Inspection to any third party, except 20 that such information may be disclosed to: (a) a consultant for the limited purpose of 21 assessing the Facility’s storm water pollution control program; and/or (b) the District 22 Court as part of enforcing compliance with this AGREEMENT. 23 72. Document Provision. During the term of this AGREEMENT, Defendant shall: 24 a. copy Plaintiff on all documents and written communications submitted to 25 the Los Angeles Regional Water Quality Control Board, Region 4, the State 26 Water Resources Control Board, and/or any Federal, State, local agency, 27 county, or municipality that are related to compliance with the General 28 Permit and/or this AGREEMENT; and STIPULATED SETTLEMENT AGREEMENT 19 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 23 of 35 Page ID #:204

1 b. provide Plaintiff with all documents and written communications directly 2 related to compliance with the General Permit and/or this AGREEMENT 3 that are received by Defendant from any Federal, State, local agency, 4 county, or municipality within fourteen (14) calendar days of receipt by 5 Defendant. 6 73. Compliance Monitoring. Defendant shall partially defray costs associated with 7 Plaintiff’s monitoring compliance with this AGREEMENT by making payments 8 totaling thirteen thousand dollars ($13,000.00). Hughes shall make an initial payment of 9 three thousand dollars ($3,000.00) within ten (10) days of the Dismissal Date, and a 10 second payment of ten thousand dollars ($10,000.00) on or before October 1, 2023. 11 Payments shall be mailed to: Los Angeles Waterkeeper, 360 E. 2nd St. Suite 250, Los 12 Angeles, CA 90012. 13 H. Environmental Mitigation and Litigation Fees and Costs 14 74. Environmental Mitigation Project. Defendant shall make one environmental 15 mitigation payment to the Rose Foundation for Communities and the Environment 16 (“Rose Foundation”), an environmental non-profit organization. The payment of forty 17 thousand dollars ($40,000.00) shall be made on or before June 1, 2023. Payment shall 18 be mailed via certified mail or overnight delivery to: Rose Foundation, ATTN: LA 19 Waterkeeper v. Hughes Brothers Aircrafters Receiver, 201 4th Street, Ste. 102, 20 Oakland, California 94607. Environmental mitigation payment funds will be used to 21 support environmental projects related to water quality in the Southern California Bight, 22 and designed to analyze, reduce, prevent, and/or otherwise mitigate the ecological or 23 public health effects of industrial storm water and/or non-stormwater discharges. 24 75. Fees and Costs. Defendant agrees to pay a total of eighty thousand dollars 25 ($80,000.00) to reimburse LA Waterkeeper for costs, including expert/consultant fees 26 and costs, and partially reimburse LA Waterkeeper for reasonable attorneys’ fees 27 incurred as a result of investigating and filing the lawsuit, negotiating a resolution of 28 this matter, notifying the Federal Agencies, and drafting/filing all necessary documents STIPULATED SETTLEMENT AGREEMENT 20 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 24 of 35 Page ID #:205

1 with the Court. The first payment of forty thousand dollars ($40,000.00) shall be sent by 2 certified mail or overnight delivery within ten (10) calendar days of the Dismissal Date 3 to: Sycamore Law Attorney Client Trust Account, 1004 O’Reilly Ave, San Francisco, 4 California, 94129. The second payment of forty thousand dollars ($40,000.00) shall be 5 sent by certified mail or overnight delivery on or before January 15, 2023 to: Sycamore 6 Law Attorney Client Trust Account, 1004 O’Reilly Ave, San Francisco, California, 7 94129. 8 V. DISPUTE RESOLUTION 9 76. This Court shall retain jurisdiction over this matter for the term of this 10 AGREEMENT for the purposes of enforcing its terms and conditions, and adjudicating 11 any and all disputes among the SETTLING PARTIES that may arise relating to any 12 provision of this AGREEMENT. The Court shall have the power to enforce this 13 AGREEMENT with all available legal and equitable remedies. 14 77. Meet and Confer. Either Party to this AGREEMENT may invoke the dispute 15 resolution procedures of this Section V by notifying the other party in writing of the 16 matter(s) in dispute and of the disputing party’s proposal for resolution. The Parties 17 shall then meet and confer in good faith (either telephonically or in person) within 18 fourteen (14) calendar days of the date of the notice in an attempt to fully resolve the 19 dispute. 20 78. Motion. In the event that the Parties cannot fully resolve the dispute within thirty 21 (30) calendar days of the meet and confer described in paragraph 77, the Parties agree 22 that the dispute may be submitted for formal resolution by filing a motion before the 23 United States District Court for the Central District of California. The Parties agree to 24 request an expedited hearing schedule on the motion. 25 79. Prevailing Party Fees. In resolving any dispute arising from this AGREEMENT 26 before the Court, the prevailing Party shall be entitled to fees and costs incurred 27 pursuant to the provisions set forth in section 505(d) of the Clean Water Act, 33 28 STIPULATED SETTLEMENT AGREEMENT 21 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 25 of 35 Page ID #:206

1 U.S.C.§ 1365(d), applicable case law interpreting such provisions, or as otherwise 2 provided for by statute and/or case law. 3 VI. RELEASE OF LIABILITY AND COVENANT NOT TO SUE 4 80. Waiver and Releases. In consideration of the above, upon the Effective Date, 5 Plaintiff, on its own behalf and on behalf of its officers and directors, release Defendant, 6 its officers, directors, managers, employees, members, parents, subsidiaries, divisions, 7 affiliates, insurers, landlords, lenders, successors or assigns, agents, attorneys and other 8 representatives, from and waives all claims and demands of any kind, nature, or 9 description whatsoever, and from any and all liabilities, damages, injuries, actions, or 10 causes of action, either at law or in equity, known or unknown, which it may presently 11 have, or which may later accrue or be acquired by it and demands of any kind, nature, 12 or description whatsoever, and from any and all liabilities, damages, injuries, actions, or 13 causes of action, either at law or in equity, known or unknown, which it may presently 14 have, or which may later accrue or be acquired by it, that were or could have been 15 raised based on the 60-Day Notice Letter and/or Complaint up to and including the 16 Termination Date of this AGREEMENT, including, without limitation, all claims for 17 injunctive relief, damages, penalties, fines, sanctions, mitigation, fees (including fees of 18 attorneys, experts, and others), costs, expenses, or any other sum incurred or claimed. 19 81. In addition, upon the Dismissal Date, the SETTLING PARTIES expressly waive 20 any rights or benefits available to them under the provisions of California Civil Code § 21 1542. The SETTLING PARTIES acknowledge they are familiar with section 1542 of 22 the California Civil Code, with provides: “A GENERAL RELEASE DOES NOT 23 EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES 24 NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF 25 EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD 26 HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR OR 27 RELEASED PARTY.” While a Party may assert that California Civil Code section 28 1542 applies to general releases only, and that the releases herein are limited releases, STIPULATED SETTLEMENT AGREEMENT 22 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 26 of 35 Page ID #:207

1 the Parties hereby waive and relinquish any rights or benefits they may have under 2 California Civil Code section 1542 with respect to any other claims arising from, or 3 related to, the allegations and claims as set forth in the 60-Day Notice, and/or the 4 Complaint, up to and including the Termination Date of this AGREEMENT. 5 82. Except as provided for in Section V of this AGREEMENT, LA Waterkeeper and 6 its officers, executive staff, attorneys, members of its governing board and any 7 organization under the control of LA Waterkeeper, its officers, executive staff, 8 attorneys, or members of its governing board, shall not pursue or file any action against 9 HUGHES seeking relief for any alleged violation of the Clean Water Act that were or 10 could have been noticed and/or alleged in the 60-Day Notice Letter or Complaint for 11 the period of time beginning on the Effective Date and ending on the Termination Date. 12 83. Nothing in this AGREEMENT limits or otherwise affects the SETTLING 13 PARTIES’ rights to address or take any position that either deems necessary or 14 appropriate in any informal or formal proceeding before the State Water Board, 15 Regional Water Board, California Environmental Protection Agency, U.S. EPA, or any 16 other judicial or administrative body on any matter relating to Defendant’s compliance 17 at the Facility with the General Permit or the Clean Water Act. 18 VII. MISCELLANEOUS PROVISIONS 19 84. No Admission of Liability. The Parties enter into this AGREEMENT for the 20 purpose of avoiding prolonged and costly litigation on disputed claims. Neither the 21 AGREEMENT nor any payment pursuant to the AGREEMENT shall constitute or be 22 construed as a finding, adjudication, or acknowledgement of any fact, law or liability, 23 nor shall it be construed as an admission of violation of any law, rule, or regulation. 24 Hughes maintains and reserves all defenses it may have to any alleged violations that 25 may be raised in the future. 26 85. Counterparts. This AGREEMENT may be executed in any number of 27 counterparts, all of which together shall constitute one original document. Telecopy, 28 STIPULATED SETTLEMENT AGREEMENT 23 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 27 of 35 Page ID #:208

1 electronic mail, and/or facsimile copies of an original signature shall be deemed to be 2 originally executed counterparts of this AGREEMENT. 3 86. Authority. The undersigned representatives for Plaintiff and Defendant each 4 certify that they are fully authorized by the Party whom they represent to enter into this 5 AGREEMENT. A Party’s signature to this AGREEMENT transmitted by facsimile or 6 electronic mail shall be deemed binding. 7 87. Construction. The language in all parts of this AGREEMENT shall be construed 8 according to its plain and ordinary meaning, except as to those terms defined in the 9 Permit, the Clean Water Act, or specifically herein. The captions and paragraph 10 headings used in this AGREEMENT are for reference only and shall not affect the 11 construction of this AGREEMENT. 12 88. Full Settlement. This AGREEMENT constitutes a full and final settlement of this 13 matter. 14 89. Integration Clause. This is an integrated AGREEMENT. This AGREEMENT is 15 intended to be a full and complete statement of the terms of the agreement between the 16 Parties and expressly supersedes any and all prior oral or written agreements, 17 covenants, representations, and warranties (express or implied) concerning the subject 18 matter of this AGREEMENT. 19 90. Severability. In the event that any provision, paragraph, section, or sentence of 20 this AGREEMENT is held by a court to be unenforceable, the validity of the 21 enforceable provisions shall not be adversely affected. 22 91. Choice of Law. The laws of the United States shall govern this AGREEMENT. 23 92. Negotiated Settlement. The Settling Parties have negotiated this AGREEMENT, 24 and agree that it shall not be construed against the Party preparing it, but shall be 25 construed as if the Settling Parties jointly prepared this AGREEMENT. Any uncertainty 26 and ambiguity shall not be interpreted against any one Party. 27 93. Modification of the AGREEMENT. This AGREEMENT, and any provisions 28 herein, may not be changed, waived, discharged, or terminated unless by a written STIPULATED SETTLEMENT AGREEMENT 24 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 28 of 35 Page ID #:209

1 instrument, signed by the Parties. In the event that there is a dispute regarding a change, 2 waiver, discharge, or termination of any provision(s), either Party may seek resolution 3 from the court. 4 94. Assignment. Subject only to the express restrictions contained in this 5 AGREEMENT, all of the rights, duties, and obligations contained in this 6 AGREEMENT shall inure to the benefit of and be binding upon the SETTLING 7 PARTIES, and their successors and assigns. Defendant shall notify Plaintiff within ten 8 (10) calendar days of any assignment. 9 95. Force Majeure. Either Parties’ performance of any requirement of this 10 AGREEMENT shall be extended or modified in the case of a force majeure event as 11 follows: 12 a. A “force majeure event” is any event arising from causes beyond either 13 Party’s control that prevents or delays the performance of any requirement 14 of this AGREEMENT despite its best efforts to fulfill the requirement; 15 b. The requirement to exercise “best efforts to fulfill the requirement” includes 16 using good faith efforts to anticipate any potential force majeure event and 17 good faith efforts to address the effects of any such event (a) as it is 18 occurring and (b) after it has occurred, to prevent or minimize any delay to 19 the greatest extent possible; 20 c. A Force Majeure event includes without limitation, any act of God, war, 21 fire, earthquake, flood, hurricane, windstorm, or natural catastrophe; 22 explosions, vehicle collisions or crashes, criminal acts, civil disturbance, 23 vandalism, accident, sabotage, or terrorism; governmental order or decree; 24 restraint by court order or public authority or agency; or action or non- 25 action by, or inability to obtain the necessary authorizations or approvals 26 from, any governmental entity. A force majeure event includes government 27 orders or restrictions related to COVID-19 and comparable public health 28 threats. Any Party seeking to rely upon this paragraph to excuse or postpone STIPULATED SETTLEMENT AGREEMENT 25 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 29 of 35 Page ID #:210

1 performance shall have the burden of establishing that it could not 2 reasonably have been expected to avoid the force majeure event, and which 3 by exercise of due diligence has been unable to overcome the failure to 4 perform; 5 d. A force majeure event does not include normal inclement weather, a 6 financial inability to pay, or employee negligence; 7 e. If Hughes seeks to avoid performance of any requirement of this 8 AGREEMENT on account of a force majeure event, it shall provide written 9 notice to Plaintiff no later than ten (10) calendar days after the time that 10 Hughes first knew of, or by the exercise of due diligence, should have 11 known of, a force majeure event. The notice shall state the anticipated 12 duration of any delay, its cause(s), and propose an alternative schedule for 13 performing the affected requirement(s); 14 f. If Plaintiff agrees that a force majeure event has occurred, Plaintiff shall 15 agree to extend the time for Hughes to perform the affected requirement(s) 16 for the time necessary to complete those obligations; and 17 g. If Plaintiff does not agree that a force majeure event has occurred or does 18 not agree to the extension of time sought by Hughes, Plaintiff may invoke 19 the Dispute Resolution Procedures in Section V of this AGREEMENT. 20 96. Correspondence. All notices required herein or any other correspondence 21 pertaining to this AGREEMENT shall be, the extent feasible, sent via electronic mail 22 transmission to the e-mail address listed below, or if electronic mail is not feasible, then 23 by certified U.S. mail with return receipt, overnight delivery, or by hand delivery to the 24 following addresses: 25 // 26 // 27 // 28 // STIPULATED SETTLEMENT AGREEMENT 26 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 30 of 35 Page ID #:211

1 If to Plaintiff: If to Defendant: 2 Jesse C. Swanhuyser Jim Hughes Sycamore Law, Inc. Hughes Brothers Aircrafters, Inc. 3 414 Olive Street 11010 Garfield Place Santa Barbara, CA 93101 South Gate, CA 90280 4 jesse@sycamore.law JHughes@hbai.com Tel: (805) 689-1469 Tel: (323) 773-4541 5 With copies to: With copies to: 6 Benjamin Harris Melissa Thorme 7 Los Angeles Waterkeeper Downey Brand LLP 8 360 E. 2nd St. Suite 250 621 Capitol Mall, Fl 18, Los Angeles, CA 90012 Sacramento, CA 95814-4731 9 ben@lawaterkeeper.org mthorme@downeybrand.com Tel: 310-394-6162, ext. 102 Tel: (916) 520-5376 10 Barak Kamelgard G. Steven Cuevas 11 Los Angeles Waterkeeper Attorney at Law 360 E 2nd Street Suite 250 1002 North Ross Street 12 Los Angeles, CA 90012 Santa Ana, California 92701 barak@lawaterkeeper.org cuevaslaw@aol.com 13 Tel: (310) 394-6162 Tel: (714) 667-0880 14 Notifications of communications shall be deemed received upon emailing unless a send 15 failure notice is received; three (3) calendar days after the date postmarked and sent by 16 first-class mail; upon proof of delivery for overnight delivery; upon receipt when 17 personally delivered: or upon delivery after acknowledgement of receipt by the receiving 18 party. Any change of address or addresses shall be communicated in the manner 19 described above for giving notices. 20 97. If for any reason the U.S. Department of Justice (“DOJ”) or the District Court 21 should decline to approve this AGREEMENT in the form presented, the Parties shall use 22 their best efforts to work together to modify the AGREEMENT within thirty (30) 23 calendar days so that it is acceptable to the DOJ or the District Court. If the Parties are 24 unable to modify this AGREEMENT in a mutually acceptable manner acceptable to the 25 DOJ or the District Court, this AGREEMENT shall immediately be null and void as well 26 as inadmissible and considered a settlement communication under Federal Rule of 27 Evidence 408 and California Evidence Code section 1152. 28 STIPULATED SETTLEMENT AGREEMENT 27 Case No. 2:22-cv-04458-DSF-JPR Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 31of35 Page ID #:212

, | IN WITNESS WHEREOF, the undersigned have executed this AGREEMENT as of the date set forth below. 3 || APPROVED AS TO CONTENT 4 || LOS ANGELES WATERKEEPER HUGHES BROTHERS 5 AIRCRAFTERS, INC. Ay Efe by: Jim Hughes 7 Bruce Reznik Owner g Executive Director Date: , 2022 9 || Date: October 6, 2022 10 1] 12 13 ||APPROVED AS TO FORM 14 15 || SYCAMORE LAW, INC. DOWNEY BRAND LLP 16 ALEK by: pe hetile ene Melissa A. Thorme M | WU TO Attorneys for Defendant 18 || by: 19 Jesse C. Swanhuyser Date: , 2022 Attorneys for Plaintiff 20 31 || Date: October 6, 2022 22 23 24 25 26 27 28 STIPULATED SETTLEMENT AGREEMENT 28 Case No. 2:22-cv-04458-DSF-JPR

Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 32 of 35 Page ID #:213

, || IN WITNESS WHEREOF, the undersigned have executed this AGREEMENT as of the date set forth below. 3 |, APPROVED AS TO CONTENT 4 || LOS ANGELES WATERKEEPER HUGHES BROTHERS 5 AIRCRAFTERS, INC. \ 6 || by: by: / Bruce Reznik \. Jim Hugh 7 Executive Director ~ Owner Date: , 2022 Date: Oct 5S _,2022 10 11 12 a APPROVED AS TO FORM

14 || SYCAMORE LAW, INC. DOWNEY BRAND LLP 15 by: ‘SY SK 16 Jesse C. Swanhuyser by: 7 Attorneys for Plaintiff Melissa A. Thorme 18 || Date: 2022 Attorneys for Defendant 19 Date: October 4, 2022 20 21 22 23 24 25 26 27 28 STIPULATED SETTLEMENT AGREEMENT 28 Case No, 2:22-cv-04458-DSF-JPR _

Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 33 0f35 Page ID#:214

Approximate Location of Trench Drain in Blue Area (referred to in paragraphs 20 through 22 of the Stipulated Settlement Agreement between Los Angeles Waterkeeper and Hughes Brothers Aircrafters, Inc.)

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(ase 2:22-cv-04458-DS F-JPR| Document 19 # iled 11/18/22 Page 34 0f35 Page |ID#@15 IMPERIAL HWY EXHIBIT B

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Case 2:22-cv-04458-DSF-JPR Document 19 Filed 11/18/22 Page 35 of 35 Page ID #:216

EXHIBIT C ASSUMPTION OF RISK/INCURRED RISK AGREEMENT AND RELEASE READ CAREFULLY BEFORE SIGNING In consideration of admittance to Hughes Brothers Aircrafters, Inc. ("the Company") facility located at 11010 Garfield Place, South Gate, California 90280 ("the Premises") on _______, 202___ for purposes of a site visit associated with confidential settlement discussions in connection with Los Angeles Waterkeeper v. Hughes Brothers Aircrafters, Inc., U.S. District Court, Central District of California, Case No. 2:22−cv−04458−DSF−JPR, the undersigned, in their individual and/or guardian capacity, fully and unconditionally assumes and incurs (except to the extent arising from the gross negligence or willful misconduct of the Company or its parents, affiliates, subsidiaries or its or their respective employees) all responsibility for all risk of damage or injury, including death, that may occur to the undersigned's person or property while present on the Company Premises. In so doing, the undersigned hereby releases and discharges the Company, its successors, assigns, affiliates, shareholder(s), officers, directors, employees, agents and legal representatives from all claims, losses, demands, liability, actions or causes of action, present or future, whether known or unknown, anticipated or unanticipated, of any kind or character (including, without limitation, for attorneys' fees, costs and expenses), resulting from or arising out of the undersigned's presence on the Premises. For the avoidance of doubt, the undersigned shall indemnify the Company (or its parents, subsidiaries or its or their respective employees, etc.) for any claim that may be available to any person in connection with, resulting from, or arising out of the undersigned's presence on the Premises, except to the extent that such claim(s) alleges gross negligence and/or willful misconduct of the Company. The undersigned hereby waives any and all right to bring any legal action against the Company, its parents or subsidiaries and its and their respective employees for injury or damage that may be sustained while present on the Premises, except to the extent caused by the gross negligence or willful misconduct of the Company. This Agreement shall be binding on the undersigned as well as the undersigned's heirs, successors, assigns, executors and personal representatives, and shall be an absolute bar to any future claims the undersigned may have against the Company its parents or subsidiaries and its and their respective employees relating to the undersigned's presence on the Company's Premises except as expressly provided herein. In Witness Whereof, the undersigned has read and caused this Agreement to be executed freely and knowledgeably this the _____th day of ____, 202__, after ample opportunity to review the document with any individuals, advisors and counsel if so desired. ________________________ Signature ____________________________ Witness ________________________ Print Name ________________________ Street Address ________________________ City, State and Zip Code 1831690v1