Payment Agreement between Stadco and LADWP

Exhibit 10.1

PAYMENT ARRANGEMENT AGREEMENT

THIS PAYMENT ARRANGEMENT AGREEMENT is made between the DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES (“LADWP”), and STADCO (“Customer”), who is the customer of record for:

The LADWP has a claim for water, water service, electric energy and/or electric service furnished to the above, in the amount of One Million Seven Hundred Seventy Thousand, Two Hundred One dollars and Fifty-Two cents ($1,770,201.52) for service through the above dates (“ARREARS”).

It is now the desire of the Customer that the claim be settled as hereinafter set forth and in consideration of payments, promises, agreements, and covenants hereinafter set forth.

The undersigned acknowledges being indebted to the LADWP for the $1,770,204.52 and acknowledges liability for such amount. In settlement of the delinquency in the above stated accounts, Customer agrees to the following payment terms and conditions:

Any and all payments shall be made payable to the “Los Angeles Department of Water and Power” and paid via LADWP website, LADWP automated telephone system, LADWP Customer Service Center, or delivered personally and/or by U.S. mail to the LADWP at the address below

OFFICE OF THE CITY ATTORNEY
Los Angeles Department of Water and Power
221 North Figueroa Street, 10th Floor
Los Angeles, California 90012

Attn: Voltaire Lazaro

This agreement does not reflect any water and power bills generated after the date of this agreement. These bills generated shall be due and payable in accordance with the LADWP’s regular bill payment policy and abide by the Rules Governing Water and Electric Service in addition to the above specified installment payments. Failure to pay these future bills shall constitute a breach of this agreement.

Payments are due on, or before the close of business (5:00 p.m.) on the above due dates. The Customer may repay the balance of the claim at any time prior to the scheduled payment date without penalty.

The late payment charge amounting to an 18% annual rate or 1.5%, computed on a daily basis will continue to be assessed and accrue on any and all unpaid balance (Rule 9(G) of the Rules Governing Water and Power).

Both payments, regardless of the due date for Future/Current Bills stated in the bi-monthly bill, shall be considered timely only if actually received on or before the dates noted in the Payment Plan.

Any default upon any of the monthly installment payments in paragraph (1) of the terms and conditions above and/or default in payment of future/current bills in paragraph (2) of the terms and conditions shall constitute a breach of this Agreement. In such an event, LADWP may withdraw the option of installment payments for the debt/ARREARS without the option of reinstatement, thus causing the delinquent amount to be due in full and payable minus payments made on the delinquent amount immediately upon notice to the Customer at their last known mailing address of record on file with LADWP which is STADCO, c/o STADCO, 107 S Avenue 20, Los Angeles, CA 90031-2588.

In addition, upon breach of this Agreement, LADWP has the right to avail itself to the existing collection process, including the interruption of service, and the right to pre-judgment interest at the rate of 18% annually on the unpaid overdue balance in accordance with LADWP’s terms of service, LADWP also has a right of post-judgment interest at the rate of 18% annually plus attorney’s fees and court costs (Rule 9(I) of the Rules Governing Water and Power).

However, in the event of a default, before LADWP can exercise the remedies mentioned in this paragraph, Customer shall have ten (10) calendar days to cure the default(s) from the date of the written notice of default is mailed to Customer.

Customer STADCO has the responsibility of notifying LADWP of any change in this contact information.

A waiver of a default of any part, term or provision of this Agreement shall not be construed as a waiver of any succeeding default or as a waiver of the part, term or provision itself. One party’s performance after the other party’s default shall not be construed as a waiver of that default.

This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced and governed by and under the laws of the State of California.

Any amendment, modification, or change to this Payment Arrangement Agreement shall not be binding unless set forth in writing duly executed by all parties to be bound or affected by such amendment, modification or change.

The parties have executed this Payment Arrangement Agreement on the day and year as indicated below. This Agreement is effective as of the date it is signed by the customer.

This Payment Arrangement Agreement must have the customer’s signature witnessed by a LADWP Customer Service Center Manager or Assistant Manager who must then sign as indicated below after the customer has provided proper identification to either manager. The LADWP Customer Service Center Manager or Assistant Manager will assume custody of the signed Agreement and forward it to Cheryl Ward via interoffice mail at Mail Stop 148 Legal Division.

Attn: CHERYL WARD
Los Angeles Department of Water and Power
221 North Figueroa Street, 10th Floor
Los Angeles, California 90012