Agmt16 Citizens for the Public Trust and Ted J. Hannig

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objective of bringing the CITY's use of the public trust portion of Docktown into closer compliance with the California State Lands Commission's ("Commission")public trust policies regarding Docktown and the June 19, 2015 letter from the California Attorney General ("AG") attached hereto as Exhibit "1" ("AG's 6/19/15 Letter") or any subsequent superseding policies of the Commission, AG, or action by the California State Legislature ("Legislature") regarding residential use on the public trust portion of Docktown. (a) Absent a superseding change in the Commission's policies, a superseding and duly issued opinion by the AG, and/or a superseding action by the Legislature, which allows residential use in Docktown, the City shall allocate a portion of the Fund to provide financial incentives for liveaboard residents in Docktown to relocate their houseboats elsewhere. (b) The Fund shall exist and be subject to the terms of this Agreement until the City fully performs the terms of this Agreement, or December 31,2020, whichever is earlier. (c) Should the entirety of the Fund not be required for the CITY to undertake its obligations under this Agreement, the monies deposited in the Fund shall remain the property of the City and may be used thereafter for any purposes designated by the CITY free and clear of this Agreement. (d) Should the entirety of the Fund not be sufficient for the CITY to undertake its obligations under this Agreement, it shall make other funds available to fund the obligations under this Agreement. 2.2 Payment to the CITIZENS Parties. Within ten (10) calendar davs of the formal approval described in paragraph 1.1 above, the CITY shall pay one million five hundred thousand dollars ($1,500,000.00) to the CITIZENS Parties, payable to "Hannig Law Client Trust Account." The CITIZENS Parties shall provide the CITY with an executed IRS Form W9 prior to the expiration of the ten day period to facilitate tax reporting of any reportable amount. The CITY shall not be obligated to make any payment until it has received a properly completed and signed W9 as provided herein. This amount shall be considered reimbursement to the CITIZENS Parties for all of their legal fees, costs, expenses and damage claims arising from or related to the Petition and this Agreement, including any legal fees, costs, and expenses arising from the quarterly reports provided by the CITY. CITIZENS Parties and Ted Hannig expressly acknowledge and agree, that any tax consequences arising from CITY's payment of any sums hereunder shall be the full responsibility of CITIZENS Parties and Ted Hannig to investigate and address based on independent legal advice. CITIZENS Parties and Ted Hannig further agree that they will indemnify and hold CITY harmless from and against any claims, costs and expense imposed by any taxing authority against CITY for non-payment of taxes by reason of payment described in this paragraph. 2.3 No Admission of Liabilitv. The CITY's payment is not intended, and shall not be construed, to be an acknowledgment, admission, concession, or stipulation of liability or SETTLEMENT AGREEMENT Page 2 of 9 � OAK#4839-2370-0524 vl l 05674-0029