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TERMS OF SETTLEMENT AGREEMENT 1. Stipulation for Dismissal of Action and Request for Court to Retain Jurisdiction to Enforcement Settlement Agreement. The Parties will enter into a Stipulation for dismissal of the action and request the Court to retain jurisdiction to enforce the Settlement Agreement for a period of three (3) years pursuant to Code of Civil Procedure section 664.6. The terms and conditions of the Settlement are provided herein. 2. Penalties Reasonable Attorneys' Fees. and Staff Costs. In consideration for the final settlement of this matter, and in accordance with the terms of this Agreement, Property Owners stipulate and agree to pay the City a total of Thirty -One Thousand U.S. Dollars ($31,000.00) in fines, fees, and staff costs ("Settlement Payment"). The Settlement Payment shall made payable to the City pursuant to the payment schedule outlined in section 2(a), below. The Settlement Payment shall be made to "City of Santa Ana" as follows: City of Santa Ana, Santa Ana City Attorney's Office, 20 Civic Center Plaza, M29, P.O. Box 1988, Santa Ana, California 92702. In consideration and promotion of community benefit to the residents and youth of the City, Property Owners shall make a further payment of Twenty Thousand U.S. Dollars ($20,000.00) to the Santa Ana Police Athletic and Activity League ("SAPAAL"). Said payment _shall be made pursuant to the payment schedule outlined in section 2(b), below. Payments shall be made payable to "Santa Ana Police Athletic and Activity League" as follows: Santa Ana Police Athletic and Activity League, Attn: Commander Michael Claborn, Santa Ana Police Department, 60 Civic Center Plaza, P.O. Box 1981, Santa Ana, CA 92701. Property Owners shall provide proof to City within thirty (30) days of payment. a. Payment schedule to the City as follows: o Within 9 months of settlement: $7,750 o Within 15 months: $7,750 o Within 21 months: $7,750 o Within 27 months: $7,750 b. Payment to SAPAAL as follows: o Within 9 months of settlement: $5,000 o Within 15 months: $5,000 o Within 21 months: $5,000 o Within 27 months: $5,000 3. Compliance and Filing of Further Actions. Following the execution of the Settlement Agreement, Defendants shall ensure (1) compliance with all terms and conditions of the Agreement; (2) the Property is not used as a drug den, as defined in Health and Safety Code § 11570. If City alleges that Defendants have violated either of these terms, City shall provide written notice detailing the basis for the alleged breach of the Settlement Agreement and provide 30 days for Defendants to either (1) contest the alleged violation or (2) to take affirmative action to correct the conditions and provide proof to City. Page 2 of 9