AMENDMENT TO AGREEMENT
(City Contract No. 23250)
This Amendment to Agreement is made by and between HONDO OIL
AND GAS COMPANY, a Delaware corporation ("Hondo"), and the CITY
OF LONG BEACH, a municipal corporation ("the City").
RECITALS
This Amendment to Agreement is made and entered into with
respect to the following facts and objectives:
1. Hondo and City entered into an Agreement (City Contract
No. 23250) on February 2, 1994 ("the Agreement"), the terms of
which released Hondo from its obligations as a non-operating
contractor under the THUMS Contracts from January 1, 1994 through
August 31, 1994, and terminating Hondo's interest in the THUMS
Contracts effective on September 1, 1994.
2. Under that Agreement, Hondo acknowledged and reaffirmed
its obligation to pay an amount due the City of $1,093,493.39,
plus an amount not yet ascertained for the 1993 Article 9
adjustment.
3. Hondo agreed to pay the total amount of $1,525,812.38 in
full on or before January 1, 1997, and to toll the statute of
limitations applicable to the bringing of suit by the City
against Hondo for recovery of this amount through December 31,
1996.
4. Both Hondo and City are desirous of extending the time
period by which Hondo will pay the total amount due and to extend
the tolling period of the applicable statute of limitations, in
accordance with the provisions of this Amendment to Agreement.
THE AGREEMENT
NOW THEREFORE, for valuable consideration, the receipt of
which is hereby acknowledged, the parties agree as follows:
1. The Agreement is amended in the following respects:
A. Paragraph 5 of the Agreement is amended to read as
follows:
5. Hondo agrees to pay the City, and hereby
reaffirms its obligation to pay, the sum of $1,525,812.38, which
amount consists of the amount of $1,093,493.39, plus the amount
of $432,318.99, representing the 1993 Article 9 adjustment. This
amount shall be paid by Hondo on or before January 1, 1999.
Interest on the amount of $1,525,812.38 shall accrue at the rate
of six percent (6%) per annum, commencing on January 1, 1997,
until the amount owed is paid in full. Until December 31, 1998,
any statute of limitation applicable to the bringing of suit by
the City against Hondo for recovery of these amounts shall be
tolled.
2. Except as specifically amended by this Amendment to
Agreement, all terms of the Agreement shall remain in full force
and effect.
The parties have executed this Amendment to Agreement on the
dates set forth opposite their respective signatures.
HONDO OIL AND GAS COMPANY
/s/ John J. Hoey
September 30, 1996 By: -------------------------
JOHN J. HOEY
President and Chief
Executive Officer
/s/ C.B. McDaniel
By: -------------------------
C.B. McDANIEL
Secretary
THE CITY OF LONG BEACH, a
municipal corporation
/s/ Henry Taboada
December 2, 1996 By: -------------------------
Assistant City Manager
EXECUTED PURSUANT TO SECTION
301 OF THE CITY CHARTER
The foregoing agreement is approved as to form this 2nd day
of December, 1996.
JOHN R. CALHOUN, City Attorney
/s/ Richard Allesso
By: -------------------------
Deputy