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APPROVED BY
<br />CIT &pU CIL
<br />Date
<br />Item #
<br />COMPROMISE AGREEMENT AND RELEASE
<br />City of Colton, a municipal corporation and Redevelopment Agency for the City of
<br />Colton, a public body, corporate and politic, hereinafter referred to as Plaintiff, and William S.
<br />McCook, an individual, Mitzi McCook, an individual, Oakridge Corporation, a Nevada
<br />corporation, Oakridge Group Corporation, a Nevada corporation, and Arcturus Outdoor
<br />Advertising Company, Inc., a California corporation, hereinafter referred to as Defendant, in
<br />consideration of the promises made herein, agree as follows:
<br />1. Nature and Effect of Agreement. This Agreement consists of a compromise and
<br />settlement by the parties of Plaintiff's claim against State Defendants (as defined in paragraph 2)
<br />and McCook Claimants (as defined in paragraph 3) and collectively referred to as Defendant
<br />herein, arising from the dispute described in paragraphs 2 and 3 and a release given by Plaintiff
<br />to Defendant relinquishing Plaintiff s claims against Defendant. By executing this Agreement,
<br />each of the parties intends to and does hereby extinguish the obligations heretofore existing
<br />between them and arising from that dispute. This Agreement is not, and shall not be treated as,
<br />an admission of liability by either party for any purpose.
<br />2. Nature and Status of State Dispute. On February 21, 2002, Plaintiff filed a
<br />complaint ("Complaint") against William S. McCook, Oakridge Corporation, Oakridge Group
<br />Corporation, Arcturus Outdoor Advertising ("State Defendants") and others in the Superior
<br />Court in and for San Bernardino County, designated as case number SCVSS087040 alleging
<br />political corruption and in particular, conflict of interest (Government Code § 1090), fraud,
<br />unfair business practices (Business & Professions Code § 17200), civil Rico (18 USC § 1961),
<br />conspiracy, declaratory relief and constructive trust ("State Court Action"). State Defendants
<br />filed an Answer to the Complaint denying the allegations and asserting various affirmative
<br />defenses. On July 24, 2002, this action was transferred to the Superior Court in and for Orange
<br />County, designated as case number 02CC 12345 and assigned to the Honorable Michael Brenner
<br />in Department C20 and thereafter reassigned to the Honorable W. Michael Hayes in Department
<br />C29. This action came in regularly for trial on June 27, 28, 29 and July 5, 2005. On September
<br />11, 2006, the Honorable W. Michael Hayes entered a Judgment in this action adjudicating the
<br />respective rights and liabilities of Plaintiff and the State Defendants. Both the Plaintiff and the
<br />State Defendants have filed appeals from the judgment to the Court of Appeal in Case No.
<br />G037862. The State Defendants opening brief is due on March 30, 2007.
<br />3. Nature and Status of Federal Dispute. On May 8, 2002, the United States of
<br />America ("USA") filed a Complaint for Forfeiture ("Complaint") in the United States District
<br />Court for the Central District of California in case no. EDCV 02 -447 -VAP regarding two
<br />billboards in the City of Colton owned by Oakridge Corporation ("Federal Court Action").
<br />William S. McCook, Mitzi McCook and Oakridge Corporation ("McCook Claimants") served
<br />verified claims in the Federal Court Action on July 12, 2002. The City of Colton ("Colton
<br />Claimant") filed verified claims on August 16, 2002. On August 23, 2002, the McCook
<br />Claimants filed opposition to the Motion to Dismiss Complaint. Prior to the Court's ruling on
<br />the Motion to Dismiss Complaint, the USA, the McCook Claimants and the Colton Claimant
<br />se
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