SETTLEMENT REPORT

1. DOCKET NO.: C02-03281

2. COURT/BRANCH: SUPERIOR COURT OF CALIFORNIA - COUNTY OF CONTRA COSTA

3. CASE NAME: Michael Joseph Lynch & Susan Huang vs. Jack Breshears et al.

4. TRIAL TYPE: N/A

5. JUDGE N/A

6. SETTLEMENT DATE:

October 9, 2002

October 24, 2002

May 20, 2003

January 7, 2004

7. TYPE OF CASE: Auto Accident – Personal Injury

8. TOTAL SETTLEMENT AMOUNT: $ 1,000,000.00

9. COUNSEL A. Plaintiff:

Omar I. Habbas, Esq.

Caroline J. Nasseri, Esq.

Habbas, Amendola & Nasseri

675 N. First Street, Suite 100

San Jose, CA 95112

Office: 408-278-0480

Fax: 408-278-0488

Party Represented: Michael Joseph Lynch and Susan Huang

B. Defense: R. Lawrence Bragg, Esq.

Law Offices of Donald J. DeShaw

2730 Gateway Oaks Drive, Ste. 210

Sacramento, CA 95833

Office: (916) 923-9505

Fax: (916) 925-4591

Parties Represented: Marc Edward Seferian

Martin L. Ambacher, Esq.

McNamara, Dodge, Ney, Beatty,

Slattery & Pfalzer, LLP

1211 Newell Avenue,

Walnut Creek, CA 94596

Office: (925) 939-5330

FAX: (925) 939-0203

&

Marchmont J. Schwartz, esq.

Schwartz & Alexander

1390 Willow Pass Road, Ste. 200

Concord, CA 94520

Office: (925) 691-7535

Fax: (925) 691-8462

Parties Represented: Jack and Dorothea Breshears

10. PARTIES: Plaintiff: Michael Lynch

Date of Birth: 1/21/55 (50 years old)

Occupation: Engineer

Susan Huang

Date of Birth: 3-12-53 (52 years old)

Occupation: San Jose State University Employee

Defendants: Jack and Dorothea Breshears; Marc Edward Seferian

11. FACTS: On 11/24/01, the collision occurred when the left rear tire of the Chevrolet truck that was being towed by Defendant Robert Breshears, disengaged from the truck and collided into a vehicle that was traveling northbound on I-5 in the city of Red Bluff. The collision caused the subject vehicle to lose control over the center median, overturn and slide directly into Plaintiff Michael Lynch's vehicle that was traveling southbound on I-5.

12. CLAIMED INJURIES: Plaintiff Michael Lynch sustained the following injuries: Severe head injury with brain stem contusion and diffuse axonal injury resulting in comatose state, subarachnoid hemorrhages including hemorrhage near brain stem; left skull fracture; multiple facial fractures, including, nasal, ethmoid and left lateral and inferior orbital bone fractures; bilateral pari-orbital ecchymoses and multiple abrasions and lacerations to the upper and lower extremities.

Plaintiff Susan Huang sustained the following injuries: Closed head injury, splenic laceration with cleft separation of the lateral two-thirds of the spleen from the medial one-third of the spleen with hemorrhage, left rib fracture, open wound of the head with contusion of the left occiput and a bruised lung.

13: CLAIMED DAMAGES: Plaintiff Michael Lynch incurred approximately $430,000.00 in medical bills with ongoing medical treatment and bills;

Plaintiff Susan Huang incurred approximately $38,599.00 in medical bills.

14: INSURANCE CARRIER: State Farm Insurance Company

2243 Samaritan Drive

P.O. Box 240001

San Jose, CA 95154

Adjuster: Jason Ramirez

USAA Casualty Insurance Company

P.O. Box 15506

Sacramento, CA 95852

Adjuster: Janet M. Tuminelli

Safeco Insurance Company

P.O. Box 4030

Concord, CA 94524

Adjuster: Lisa Blumm

Allstate Insurance Company

2775 Sanders Road,

Northbrook, IL 60062

15: COMMENTS: Plaintiffs settled for a total of $100,000.00 against driver Robert Duane Breshears' State Farm liability coverage on 10/9/02; Plaintiffs settled for a total of $100,000.00 against their underinsured motorist coverage with USAA on 10/24/02; Plaintiffs settled for a total of $200,000.00 against Marc Edward Seferian's Safeco liability coverage on 5/20/03; Plaintiffs settled for a total of $600,000.00 against Jack and Dorothea Breshears' Allstate liability coverage on 1/7/04;