SETTLEMENT REPORT

1. DOCKET NO.: 144608

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

3. CASE NAME: JAMES vs. FORD MOTOR COMPANY et al.

4. TRIAL TYPE: N/A

5. MEDIATOR Hon. Peter Stone (Ret.)

6. SETTLEMENT DATE: February 3, 2003

7. TYPE OF CASE: Auto Accident – Personal Injury

8. SETTLEMENT AMOUNT: $ 1,000,000.00 – County of Merced Under Confidential Agreement –Ford Motor Co.

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

Plaintiff: Steven J. Brewer, Esq.

Gwilliam, Ivary, Chiosso, Cavalli &

Brewer

1999 Harrison Street, Suite 1600

Oakland, CA 94612

Office: 510-832-5411

Fax: 510-832-1918

Parties Represented: Marlene James

B. Defense: Michael L. Mason, Esq.

William E. Gnass, Esq.

Mason, Robbins, Gnass & Browning

700 Loughborough Drive

Suite D

Merced, CA 95344

Office: (209) 383-9334

Fax: (209) 383-9386

Parties Represented: County of Merced

Defense: Janice O'Grady, Esq.

Melinda Garcia, Esq.

Bowman & Brooke

160 West Santa Clara St., Suite 1150

San Jose, CA 95113

Office: (408) 279-5393

Fax: (408) 279-5845

Parties Represented: Ford Motor Company

10. PARTIES: Plaintiff: Marlene James

Defendant's: County of Merced

Ford Motor Company

11. FACTS: On November 21, 1999 at approximately midnight, plaintiff suffered life altering paraplegia when she missed a curve on Franklin Road at Southern Pacific Road in Merced County, California. Plaintiffs' 1994 Ford Escort slid off the roadway into a cow pasture, where it rolled over one time, coming to rest on its wheels. Plaintiff was the seat belted driver of the vehicle. Her passengers, one seat belted, the other not, walked away from the accident. Plaintiff is a paraplegic as a result of the combination of a dangerous and defective roadway and a dangerous and defective automobile.

12. CLAIMED INJURIES: Plaintiff suffered a spinal cord injury at T11/T12, which caused complete obliteration of the spinal cord below that level, leaving her paralyzed.

13: CLAIMED DAMAGES: Plaintiff incurred $450,079.79 in medical expenses; future loss of earnings and loss of household services of $820,715.00; and requires a Life Care Plan which will cost approximately $971,134.00.

14: COMMENTS: Case was mediated with Hon. Peter Stone (Ret.) Settled with County of Merced for $1,000,000.00 Settled with Ford Motor Company under a Confidentiality Agreement.