PLEASANTON CREEK ASSOCIATES SETTLEMENT AGREEMENT

Page 5 of 12 Civil Procedure section 383, its Declarations of covenants, Conditions and-Restrictions, and its Articles of Incorporation and/or Bylaws to bring the Action as the real party-in-interest on behalf of the individual owners for any damages to common areas and separate interests which it is obligated to maintain,preserve, protect, or repair, and damages to separate interests integrally arising out of the foregoing, without joining with it the individual owners. (d) The ASSOCIATION represents and warrants that it was and is authorized by its Articles of Incorporation, By-Laws and Declaration of Covenants, Conditions & Restrictions and by resolution and ratification of the ASSOCIATION through its Board of Directors, to file and prosecute the Action and to pursue the claims for damages. The ASSOCIATION further represents and warrants that it has been and is properly and duly authorized to compromise and settle the action and to enter into this Agreement. (e) The ASSOCIATION, DEVELOPERS, and the City of Pleasanton represent and warrants that the rights, claims, and causes of action released in this Agreement have not been sold, transferred, conveyed, assigned, hypothecated or subrogated, and hereby expressly waives all rights it has or may have to do so. (f) The ASSOCIATION represents and warrants that all of the Terms and Conditions of this Agreement have been explained to the members of the Board of Directors of the ASSOCIATION by its legal counsel and said members of the Board of Directors have understood and accepted all of said Terms and Conditions stated herein. (g) The ASSOCIATION represents and warrants that it has selected and retained its own experts and consultants to inspect, analyze and advise it regarding the nature, extent, cause and repair of all alleged design and construction problems, claims and damages at the Project which are or were the subject of the Action or this Agreement. The ASSOCIATION and its experts and consultants have also had the opportunity to review and analyze the repair plans and proposals presented by the PACWEST consultants and have reached an independent and separate conclusion regarding their adequacy and effectiveness. In entering into this Agreement, the ASSOCIATION agrees, acknowledges, represents and warrants that it is not relying on any representation, opinions, conclusions, recommendations,bids or estimates expressed by, provided by or inferred from any other party to this Agreement, any attorney for any other party, or any other party's experts,consultants or agents. The ASSOCIATION agrees not to bring any legal action or other proceeding against any other party to this agreement,their attorneys, or their consultants for any alleged misrepresentation, errors or omissions with respect to their opinions, conclusions, or estimates. 11. Warranty of Authorized Signatories. This Agreement constitutes a legal,valid and contractual obligation binding on the ASSOCIATION, PACWEST,DEVELOPERS, and the City SETTLEMENT AGREEMENT, MUTUAL RELEASE AND COVENANT NOT TO SUE Canyon Creek of Pleasanton v. Pacwest Development, et al.