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CONTRACT 3549 Settlement AgreementWhen Recorded Mail to: City Clerk City of El Segundo 350 Mail Street City of El Segundo, California 90245 SETTLEMENT AGREEMENT 1. PARTIES 3549•.., This Settlement Agreement ( "Agreement ") is made and executed as of December 2 , 2005, by and between Paul and Mele Chance (collectively "Chance ") and the City of El Segundo ( "CITY'). 2. RECITALS 2.1 Paul and Mele Chance are husband and wife and own, in joint tenancy, the property described on exhibit A and commonly known as 814 Bungalow Drive, El Segundo, California ( "Property "); 2.2 On or about June 28, 2004 the City issued a building permit to Chance for construction of a second residential unit in the rear yard portion of the Property ( "Permit'). At the time the permit was issued, there was already a dwelling unit located on the front portion of the Property. 2.3 The City contends the Permit is invalid as it purports to allow the construction of a second dwelling unit on the Property and that the Permit is not in compliance with the El Segundo Municipal Code ( "ESMC" ). Chance contends the Permit is valid and that the second dwelling unit on the Property was constructed in accordance with the Permit and the ESMC. Chance further contends that Chance will be damaged if the Permit is determined to be invalid or Chance is otherwise unable to utilize the residential dwelling unit that is purportedly authorized by the Permit. The parties contentions set forth in this Section 2.3 are collectively referred to herein as the "Dispute." LA #122891 v1 -1- ()6 0157394 3 5► 2.4 The parties understand and agree that a material purpose of this AGREEMENT is to resolve the Dispute and to amicably settle and resolve all claims related to the Dispute. 3. CONSIDERATION 3.1 The parties hereby agree that: (a) this Agreement shall be recorded against the Property and shall represent a covenant recorded against the Property restricting the Property such that only one residential dwelling unit may be maintained disposals, the Property bathing ft t no cooking facilities (for example, stove, oven or hot plate), garbage (shower or bath tub) shall be constructed or maintained in the structure that was erected pursuant to the Permit; except in the event that the City specifically adopts an Ordinance that permits a second dwelling unit to be constructed on the Property; (b) Chance shall within 180 days of the execution of this Agreement remove all cooking facilities, garbage disposals and bathing facilities from the structure that were erected pursuant to the Permit; (c) the City shall within 15 days of the execution of this Agreement deliver a check in the amount of $125,000 to Chance made payable to the Paul and Mele Chance; and, (d) the parties shall release whatever claims they have against each other, if any, arising out of the Dispute as set forth in Section 4 of the Agreement. 3.2 CHANCE and the CITY shall each bear their own attorney fees and costs incurred in connection with the Dispute and Agreement. The City will issue a Internal Revenue Form 1099 income statement to Chance with respect to the $125,000 payment referenced above. Chance shall be responsible and liable for paying all federal, state and local taxes associated with the payment, including fines and penalties, if any, that may arise from the Chance's receipt of the payment. 4. RELEASE In exchange for the payment, representations and covenants made herein, and except only as to such rights or claims as may be created by this Agreement, Chance and City hereby, and for their respective heirs, representatives, successors, and assigns, release, acquits, and forever discharge the each other and all of their respective agents, officers, current and former elected and appointed officials, current and former employees, representatives, insurers, attorneys, and all persons acting by, through, under, or in concert with any of them, and each of them, from any and all claims, charges, complaints, liabilities, obligations, promises, benefits, Agreements, controversies, costs, losses, debts, expenses, damages, actions, causes of action, suits, rights, and demands of any nature whatsoever, known or unknown, suspected or unsuspected, which the parties now have or may acquire in the future, which relate to or arise out of any act, omission, occurrence, condition, event, transaction, or thing which was done, omitted to be done, occurred or was in effect at any time from the beginning of time up to and including the date of this Agreement relating or arising from the Dispute ( "Claims "), without regard to whether such Claims arise under the federal, state or local constitutions, statutes, rules, ordinances or regulations, or the common law. In this connection, Chance and City each hereby waive and release any rights which they respectively have against the other and their successors, heirs, executives, administrators, may have directly or indirectly, if any, jointly or severally, LA # 122891 v -2- 6 0157394 3549 . , ..+ r directly or indirectly, under the provisions of California Civil Code section 1542, and any similar state or federal statute, which reads in sum, substance or substantial part as follows: A GENERAL RELEASE DOES NOT EXTEND TO 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. Chance and the City acknowledge that the facts with respect to which each gives this general release may turn out to be different from the facts they now believe to be true. Chance and the City hereby assume the risk of the facts turning out to be different, and agree that this Agreement and the above release shall in all respects be effective and not subject to termination or rescission because of any such difference in facts. 5. REPRESENTATIONS AND WARRANTIES Each of the parties to this Agreement represent and warrant and agree with each other party as follows: 5.1 Advice of Counsel: Each party has received independent legal advice from its attorney(s) with respect to the advisability of making the settlement and releases provided herein, with respect to the advisability of executing this Agreement, and with respect to the meaning of California Civil Code section 1542. 5.2 No Fraud in Inducement: No party (nor any officer, agent, employee, representative, or attorney of or for any party) has made any statement or representation or failed to make any statement or representation to any other party regarding any fact relied upon in entering into this Agreement, and neither party relies upon any statement, representation, omission or promise of any other party (or of any officer, agent, Chance, representative, or attorney of or for any party) in executing this Agreement, or in making the settlement provided for herein, except as expressly stated in this Agreement. 5.3 Independent Investigation: Each party to this Agreement has made such investigation of the facts pertaining to this severance and settlement and this Agreement and all the matters pertaining thereto as it deems necessary. 5.4 Comprehension and Authority: Each party or responsible officer thereof has read this AGREEMENT and understands the contents hereof and warrants that he or she is authorized to execute the Agreement. 5.5 Mistake Waived: In entering into this Agreement and the severance and settlement provided for herein, each party assumes the risk of any misrepresentation, concealment or mistake. If any party should subsequently discover that any fact relied upon by it in entering into this Agreement was untrue, or that any fact was concealed from it, or that its understanding of the facts or of the law was incorrect, such party shall not be entitled to rescind or set aside the Agreement. This Agreement is intended to be and is final and binding between LAN122891v1 -3- 00"' U57394 3549 . , , r 0 the parties, regardless of any claims of misrepresentation, promise made without the intent to perform, concealment of fact, mistake of fact or law, or any other circumstance whatsoever. 5.6 Later Discovery: Chance and the City are aware that they may hereafter discover claims or facts in addition to or different from those they now know or believe to be true with respect to the matters related herein. Nevertheless, it is both parties intention to fully, finally and forever settle and release all such matters, and all claims relative thereto, which do now exist, may exist or have previously existed between both parties. In furtherance of such intention, the releases given here shall be and remain in effect as full and complete releases of all such matters, notwithstanding the discovery or existence of any additional or different claims or facts relative thereto. 5.7 Ownership of Claims: Chance represents and warrants as a material term of this Agreement that they are the sole owners of the Property and that they have not heretofore assigned, transferred, released or granted, or purported to assign, transfer, release or grant, any of the Claims disposed of by this Agreement. In executing this Agreement, Chance further represents and warrants that none of the Claims released by her hereunder will in the future be assigned, conveyed, or transferred in any fashion to any other person and /or entity. 5.8 Future Cooperation: The parties will execute all such further and additional documents as shall be reasonable or necessary to carry out the provisions of this AGREEMENT. 6. MISCELLANEOUS 6.1 No Admission: Nothing contained herein shall be construed as an admission by the parties of any liability of any kind. The parties each deny any liability in connection with any claim or wrongdoing. Each party also intend hereby solely to amicably resolve all matters between the parties. 6.2 Governing Law: This Agreement and the rights and obligations of the parties shall be construed and enforced in accordance with, and governed by, the laws of the State of California. The venue for any legal action relating to this Agreement shall be the Los Angeles County Superior Court. 6.3 Full Integration: This Agreement is the entire Agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written Agreements and discussions. This AGREEMENT may be amended only by a further Agreement in writing, signed by the parties hereto. 6.4 Continuing Benefit: This Agreement is binding upon and shall inure to the benefit of the parties hereto, their respective successors, assigns, agents, employees, representatives, officers, and officials. 6.5 Joint Drafting: Each party has cooperated in the drafting and preparation of this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be construed against any party. LA # 122891 v 1 -4- 0153 0157-394 3549 . 6.6 Severability: In the event that any term, covenant, condition, provision or Agreement contained in this Agreement is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or Agreement shall in no way affect any other term, covenant, condition, provision or Agreement and the remainder of this AGREEMENT shall still be in full force and effect. 6.7 Titles: The titles included in this Agreement are for reference only and are not part of the terms of this Agreement, nor do they in any way modify the terms of this Agreement. 6.8 Counterparts: This Agreement may be executed in counterparts, and by facsimile and when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one Agreement, which shall be binding upon and effective as to all parties. 6.9 Executed Copy: All parties shall receive a fully executed copy of this AGREEMENT. 6.10 Notice: Any and all notices given to any party under this AGREEMENT shall be given as provided in this paragraph. All notices given to either party shall be made by certified or registered United States mail, or personal delivery, at the noticing party's discretion, and addressed to the parties as set forth below. Notices shall be deemed, for all purposes, to have been given on the date of personal service or three (3) consecutive calendar days following deposit of the same in the United States mail. As to CHANCE: Paul and Mete Chance 814 Bungalow Drive El Segundo, California 90245 As to the CITY: Attn: City Clerk City of El Segundo 250 Main Street El Segundo, California 90245 WHEREFORE, the parties hereto have read all of the foregoing, understand the LA #122891 v1 -5- 0164 0157394 same, and agree to all of the provisions contained herein. DATED: I ). 'a' -b 5 CITY OF EL SEGUNDO M. 3549 DATED: ( � — 1 — D 5- CHANCE APPROVED AS TO FORM: By: - _ Mark D. Hensley, City Attome LA H 122891 v I 7 By: Pa 1 Chance By: —YO 11C in Mele Chance 06 0157394 5 Attest: By: Ad4i��� Cindy Mcktesen, City Clerk 02416- doc.doe /sjm LA #122891 v1 -7- 06 0157394 J i December 2, 2005 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) On December 2, 2005, before Cathy Domann, Deputy City Clerk, personally appeared Kelly McDowell, Mayor of the City of El Segundo, personally known to me to be the person whose name is subscribed to on the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal Cathy Do ann, Deputy City Clerk 06 0157394 ... .,.■nnncc erKNeWLEDGMENT VAL.IrvnnIllf+ .�.....- �..... - -- State of California ss. County of &//f, 6 On before me, Date t personally appeared LINDA CA1MN D rilpm '' CommI"llon * 1517879 t40jCWy Public s C °ounN tos NA11 C s: ocl 4,21 Place Notary Seal Above 3 49•�r•. L)1Ada Lary �am�nh Name and Title of Officer ( Jane Doe, Notary Public") Names) of Signers) L I personally known to me 71,41,oved to me on the basis of satisfactory evidence to be the person(s) whose name(s) - is�are subscribed to the within instrument and acknowledged to me that hell /they executed the same in 4i&A-ref /their authorized capacity(ies), and that by #is�/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. A�4 Signature of Notary lic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Documentse,� I Title or Type of Document: Document Date: ( a —, — D 5 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual I Corporate Officer — Title(s): 1 Partner — 0 Limited G General C i Attorney in Fact L� Trustee Guardian or Conservator L l Other: Signer Is Representing: �(e C. ►'n Number of Pages: 7 ©1999 National Notary Association • 9350 De Soto Ave., P.O. Box 2402 • Cnatswonn, UH a i a 11 -1— - .... • °° • °- , - RIGHT THUMBPRINT OF SIGNER .. of thumb herel — u,. son? Reorder: Call Toll -Free 1- 800 - 876 -6827 06 015`794 EXHIBIT "A" 3549. 12...,- Lot 9 of Tract No. 12887, in the City of El Segundo, County of Los Angeles, State of California, as per map recorded in Book 249, Pages 24 and 25, of Maps in the Office of the County Recorder of Los Angles County. 06 0157394