SETTLEMENT REPORT

1. DOCKET NO.: 15951

2. COURT/BRANCH: SUPERIOR COURT OF CALIFORNIA - COUNTY OF SOLANO

3. CASE NAME: Douglas Ince vs. First Capitol Auction Co.

4. TRIAL TYPE: N/A

5. JUDGE N/A

6. SETTLEMENT DATE: December 27, 2001

7. TYPE OF CASE: Premise Liability – Personal Injury

8. SETTLEMENT AMOUNT: $950,000.00

9. COUNSEL A. Plaintiff:

Omar I. Habbas, Esq.

Habbas, Amendola & Nasseri

675 N. First Street, Suite 100

San Jose, CA 95112

Office: 408-278-0480

Fax: 408-278-0488

Steven J. Brewer, Esq

GWILLIAM, IVARY, CHIOSSO, CAVALLI & BREWER

1999 Harrison Street, Suite 1600

Oakland, California 94612

Office: (510) 832-5411

Fax: (510) 832-1918

Party Represented: Douglas Ince

B. Defense: James T. Anwyl, Esq.

Anwyl, Scoffield & Universal, LLP

2180 Harvard Street, Ste. 200

Sacramento, CA 95815

Office: (916) 565-1800

Fax: (916) 565-2374

Parties Represented: First Capitol Auction

10. PARTIES: Plaintiff: Douglas Ince

Date of Birth: 8/30/45 (56 years old)

Occupation: Owner – Pipeline Construction

Company

Defendants: First Capitol Auction Co.

11. FACTS: On 11/20/99, plaintiff was picking up supplies at First Capitol Auction when he was struck on the head by a forklift. Defendants have disputed liability.

12. CLAIMED INJURIES: Plaintiff sustained a neck and head injury. Hospital records indicated that Mr. Ince may have experienced a momentary loss of consciousness after the accident. A CT scan of the head was unremarkable. Mr. Ince had difficulty with attention, verbal memory, calculations, abstractions and problem-solving. An MRI scan revealed a 2 cm zone of post traumatic encephalomalacia in the inferior left parietal lobe.

Also indicated were possible minimal changes in the inferior aspect of the right frontal lobe, but these were equivocal. Mr. Ince was diagnosed with a brain injury with cognitive impairment.

13: CLAIMED DAMAGES: Plaintiff incurred approximately $58,429.95 in medical bills.

14:INSURANCE CARRIER:

Financial Pacific

P.O. Box 292220

Sacramento, CA 95829

Adjuster: Lucia Harmon

15: COMMENTS: Settled for $950,000.00 in mediation.