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TOLLING AND STANDSTILL AGREEMENT <br />This Tolling and Standstill Agreement (`Agreement") is made and entered into effective <br />January 17, 2003 by and between the City of Colton (`Colton") on the one hand, and the County <br />of San Bernardino (`County"), on the other hand. Colton and the County may be referred to <br />collectively as the "Parties." <br />RECITALS <br />1. WHEREAS Colton asserts that: <br />A. The Colton -Rialto Groundwater Basin is contaminated with <br />perchlorate; and <br />B. As a result of the groundwater contamination, Colton has been forced to shut <br />down some of its water production wells. <br />C. Colton has incurred costs and suffered damages as a result of the <br />groundwater contamination. <br />D. The County may be liable to Colton for the perchlorate contamination. <br />E. The California Tort Claims Act (Government Code § 810 et seq.) <br />requires claims against the County to made within the time prescribed thereby. <br />2. WHEREAS, the County disputes some of the above allegations; <br />3. WHEREAS, the Parties believe there is a possibility of reaching an agreement on <br />the scope and amount of the County's liability without litigation; <br />4. WHEREAS, the Parties believe that a period of time is needed to attempt to <br />negotiate a settlement without the threat of litigation; and <br />5. WHEREAS, Colton and the County wish to enter into a tolling and standstill agreement <br />with respect to any claims the Parties may have arising from the groundwater and soil <br />conditions existing in the area and referenced herein in the vicinity of the Colton -Rialto <br />Groundwater Basin while Colton and the County attempt to resolve Colton's claims <br />informally. <br />RVPUB/ELB/645992 <br />I <br />