PLEASANTON CREEK ASSOCIATES SETTLEMENT AGREEMENT

• Page 4 of 12 had the benefit and advice of counsel and hereby knowingly and specifically waives its rights under California Civil Code Section 1542, to the extent that it may apply to this release, which provides as follows: A general release does not extend to the claims which the - creditor does not know or suspect to exist in his favor at the time of executing the release,which if known by him must have materially affected his settlement with the debtor. 9. Covenant Not to Sue. The ASSOCIATION hereby covenants and agrees never to commence, aid in any way or in any manner prosecute against PACWEST or DEVELOPERS any legal action or other proceeding based in whole or in part upon the claims, demands, causes of action, obligations, damages or liabilities released in this Agreement, as described herein. Each of the parties hereto further covenants and agrees never to commence and/or prosecute against PACWEST or DEVELOPERS any legal action or other proceeding based in whole or in part upon any claim, demand, cause of action, obligation, damage and/or liability arising out of or relating to any claims made by the ASSOCIATION in their Complaint filed in Action No. V- 018334-5, Alameda County Superior Court. This Agreement may be pled as a full and complete defense to any action or other proceeding or as a basis for abatement of or injunction against such action. 10. Representations and Warranties. The ASSOCIATION makes the following representations and warranties with the understanding that each other party hereto enters into this Agreement in reliance upon each of these representations and warranties, and that without these representations and warranties, no party would enter into this Agreement: (a) The ASSOCIATION represents and warrants that it is a nonprofit corporation duly organized, operating and existing under the laws of the State of California, that it is in good standing, and that it is comprised of members who are owners of units, as more particularly described in the Declaration of Covenants, Conditions &Restrictions for the Project, recorded in the office of the Alameda County Recorder. (b) The ASSOCIATION represents and warrants that,pursuant to its Articles of Incorporation,By-Laws and Declaration of Covenants, Conditions & Restrictions, and as further established in California Civil Code Section 783 and Sections 1350 through 1364, inclusive, the ASSOCIATION is responsible to maintain, repair,replace,restore, operate and manage all of the common area and certain facilities, improvements, furnishings, equipment and landscaping thereon, and all property that may be acquired by the ASSOCIATION. (c) The ASSOCIATION represents and warrants that it has standing under Code of SETTLEMENT AGREEMENT, MUTUAL RELEASE AND COVENANT NOT TO SUE Canyon Creek of Pleasanton v. Pacwest Development, et al.