PLEASANTON CREEK ASSOCIATES SETTLEMENT AGREEMENT

Page 2 of 12 involve each of them and any claims which were or could have been asserted with respect to the released matters and to release each other from all possible liability, known and unknown, in connection therewith and in connection with the Property pursuant to the full and timely performance of the following Terms and Conditions in the manner prescribed in this Agreement; TERMS AND CONDITIONS 1. Benefit of Counsel. The advice of legal counsel has been obtained by each party hereto prior to entering into this Agreement. Each party hereto executes this Agreement with full knowledge of its Terms and Conditions and their significance and with the express intention of effecting its legal consequences. 2. Payment to Association. In consideration for the full and timely performance by each party hereto of each of the Terms and Conditions of this Agreement in the manner prescribed herein, including without limitation all releases, dismissals, waivers, covenants, warranties and representations, execution and delivery of all documentation required herein, and in full and final settlement of the Action, PACWEST have caused or will cause to be paid to the ASSOCIATION a total sum of$35,000.00 in the form of drafts or checks payable to "Canyon Creek HOA and Anguis &Terry LLP, their attorneys of record. Canyon Creek HOA's tax identification number is 94-3220992. 3. Payment to Developers Insurance. In consideration for the full and timely performance by each party hereto of each of the Terms and Conditions of this Agreement in the manner prescribed herein, including without limitation all releases, dismissals, waivers, covenants, warranties and representations, execution and delivery of all documentation required herein, and in full and final settlement of the Action, PACWEST have caused or will cause to be paid to DEVELOPERS a total sum of$12,500.00 in the form of drafts or checks payable to "Developers Surety and Indemnity Company," and delivered to Developers, P.O. Box 19725, Irvine, CA 92713. DEVELOPERS' tax identification number is 42-042-9710. 4. Release of All Bonds by City of Pleasanton. In consideration for the full and timely performance by each party hereto of each of the Terms and Conditions of this Agreement in the manner prescribed herein, including without limitation all releases, dismissals, waivers, covenants, warranties and representations, execution and delivery of all documentation required herein, and in full and final settlement of the Action, the City of Pleasanton has caused or will cause all bonds relating to the Canyon Creek project to be released and delivered to DEVELOPERS and PACWEST. 5. Delivery of Checks. All checks and drafts payable to the ASSOCIATION shall be delivered by tendering them Anguis &Terry, 1333 N. California Blvd., Suite 435 P.O. Box SETTLEMENT AGREEMENT, MUTUAL RELEASE AND COVENANT NOT TO SUE Canyon Creek of Pleasanton v. Pacwest Development, et al.