SHEBOYGAN HARBOR & RIVER CONSENT DECREE (CERCLA)

In this action, the United States seeks the implementation of response actions at, and the reimbursement, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (‘‘CERCLA’’), 42 U.S.C. 9601 et seq., of costs incurred by the United States in responding to a release or threat of release of hazardous substances in, the Lower River portion of the Sheboygan River and Harbor Superfund Site in Sheboygan County, Wisconsin (‘‘Site’’). In the Amended Complaint filed in this matter, the United States alleges that Tecumseh Products Company (‘‘Tecumseh’’) was an ‘‘owner or operator’’ of the Site at the time of the disposal of hazardous substances in the Lower River portion of the Site and therefore, pursuant to CERCLA Section 107(a)(2), 42 U.S.C. 9607(a)(2), is liable for the reimbursement of response costs and for the performance of response actions under CERCLA. In the Amended Complaint, the United States further alleges that co-Defendants Pollution Risk Services LLC, and Palace Associates, LLC, are liable, under CERCLA Section 107(a)(1), 42 U.S.C. 9607(a)(1), as present owners of a portion of the Site. This is the third settlement agreement in this matter. On May 12, 2004, the United States District Court for the Eastern District of Wisconsin approved and entered a Consent Decree (‘‘2004 Decree’’) that required Tecumseh to: (1) Implement those components of the remedy for the Upper River portion of the Site that were set forth i