SETTLEMENT REPORT

1. DOCKET NO.: VG06-296717

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

3. CASE NAME: HAMILTON vs. STATE OF CALIFORNIA

4. TRIAL TYPE: N/A

5.MEDIATOR Bruce Edwards, Esq.

6. SETTLEMENT DATE: April 8, 2008

7. TYPE OF CASE: Motorcycle Accident – Personal Injury

8. SETTLEMENT AMOUNT: $ 700,000.00 – State of California

9. COUNSEL A. Plaintiff:

Omar I. Habbas, Esq.

Habbas, Nasseri & Associates

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: Charles Hamilton, III

B. Defense: Bruce A. Behrens, Chief Counsel

David Gossage, Deputy Chief Counsel

Lora D. Curtis, Esq.

595 Market Street, Suite 1700

San Francisco, CA 94105

Office: (415) 904-5700

Fax: (415) 904-2333

Parties Represented: State of California

10. PARTIES: Plaintiff: Charles Hamilton, III

Defendant: State of California

11. FACTS: On November 5, 2005 at approximately 3:15 p.m., plaintiff was riding his motorcycle in the number one lane on eastbound Interstate 580 just east of Flynn Road in Alameda County when he felt the front end of his motorcycle suddenly drop into a crevice between the number one and number two lanes. As plaintiff's motorcycle came out of the crevice, the front end began to wobble and the motorcycle began to head towards the center divide of the highway. As the motorcycle entered the bumpy center divide area, plaintiff was thrown from the motorcycle into the guard rail causing multiple injuries to the plaintiff.

Defendant maintained that the roadway imperfections, if any were minor and insignificant and that the accident was caused by mechanical defects of plaintiff's motorcycle as well as his overreaction to his motorcycles defective performance.

12. CLAIMED INJURIES: Plaintiff suffered a compound fracture to left ankle, fractures of the right femur, right hip, right shoulder, and pelvis, a torn right rotator cuff a forehead laceration, and left leg laceration as well as permanent scarring. Defendant disputes the nature and extent of plaintiff's injuries.

13: CLAIMED DAMAGES:

Plaintiff incurred $135,000.00 in medical expenses; past and future loss of earnings capacity of $455,207.50; future medical expenses of $55,954.50; and property damage of $11,893.22.

14: COMMENTS: Case was mediated with Bruce Edwards, Esq. Settled with State of California for $700,000.00