PLEASANTON CREEK ASSOCIATES SETTLEMENT AGREEMENT

Page 1of12 SETTLEMENT AGREEMENT,RELEASE AND COVENANT NOT TO SUE This Settlement Agreement,Release and Covenant Not to Sue ("Agreement") is entered into,by and among the following persons and entities: 1. CANYON CREEK HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation, on behalf of itself and as standing is conferred upon it by California Code of Civil Procedure sections 383, and its Declaration of Covenants, Conditions and Restrictions, Articles of Incorporation and/or Bylaws ("ASSOCIATION"), and 2. PACWEST DEVELOPMENT CORPORATION, PLEASANT CREEK DEVELOPMENT, J.CARTER WITT III(collectively referred to as "PACWEST"), 3. DEVELOPERS SURETY AND INDEMNITY COMPANY aka DEVELOPERS INSURANCE COMPANY ("DEVELOPERS"); and, 4. CITY OF PLEASANTON Without admitting liability or any obligation whatsoever, the parties to this Agreement desire to settle any and all claims between them relating to the Agreement as defined herein. RECITALS A. The parties to this Agreement have been or may be involved in various claims and disputes arising out of or connected with residential properties in Pleasanton, Alameda County, California,commonly known as Canyon Creek, as more particularly described in Exhibit "A" attached to this Agreement("Property"). B. All those various claims and disputes are at issue in that certain action number V-018334-5,pending in the Superior Court of the State of California, County of Alameda, (the "Court"), entitled Canyon Creek of Pleasanton v. Pacwest Development, et al. (the "Action"). This Agreement is made and entered into by and among the parties hereto to formalize termination of their involvement in the Action. C. The parties to this Agreement desire to resolve all aspects of the Action that SETTLEMENT AGREEMENT, MUTUAL RELEASE AND COVENANT NOT TO SUE Canyon Creek of Pleasanton v. Pacwest Development, et al.