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Release. As consideration for delivery of the Settlement Amount in accordance with this <br />Agreement and the Parties' mutual covenants herein, the Parties agree to waive, release <br />and forever discharge any and all claims, potential claims, demands, or causes of action <br />reflected in the Lawsuit, and any other claims, demands, or causes of action relating to <br />the claims of Plaintiffs which may have arisen prior to the Effective Date of this <br />Agreement from the same operative facts as those alleged in the Lawsuit, that the Parties <br />may have against each other, including their officers, directors, employees, agents, <br />representatives, sureties and insurers, and their successors and assigns, arising from or <br />relating to the Lawsuit. The release set forth in this paragraph will become effective <br />when this Agreement is fully executed and Defendants have delivered the checks in <br />payment of the Settlement Amount in accordance with this Agreement. <br />5.1 The Parties hereby expressly waive the provisions of California Civil Code <br />§ 1542, which provide as follows: <br />A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE <br />CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR <br />HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH <br />IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED <br />HIS OR HER SETTLEMENT WITH THE DEBTOR. <br />5.2 Each Party is aware that it may hereafter discover claims or facts in addition to or <br />different from those it now knows or believes to be true with respect to the <br />matters related herein. Nevertheless, it is the intention of the Parties to fully, <br />finally and forever settle and release the matters related hereto. In furtherance of <br />such intention, the releases given hereon shall be and remain in effect as full and <br />complete mutual releases of all such matters, notwithstanding the discovery or <br />existence of any additional or different claims or facts relative thereto. <br />6. Approval. Plaintiffs understand and agree that this Agreement is subject to final approval <br />by the Santa Ana City Council and the United States Department of Justice. The <br />execution of this Agreement by Defendants is subject to and conditioned upon the <br />granting of all such approvals needed to make this Agreement final and binding. The <br />persons signing this Agreement on behalf of Defendants will recommend that this <br />Agreement be so approved. <br />No Admission of Liability. This Agreement represents a settlement of disputed claims <br />and shall not be construed as an admission of liability by any Party. Each Party denies <br />liability in connection with any claims and intends merely to avoid litigation. <br />8. Ownership and Non -Assignment of Claims. The Parties each represent and warrant that <br />they own the claims that are the subject of this Agreement and have the unconditional <br />right to release such claims. The Parties represent and warrant that they have not sold, <br />transferred, assigned or otherwise conveyed any of the rights or claims being released <br />hereunder. <br />Page 7 of 10 <br />