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United States District Court, N.D. California, San Francisco Division

November 17, 2005.

FRANK ZEIDEN, Plaintiff,

The opinion of the court was delivered by: WILLIAM ALSUP, District Judge

IT IS HEREBY STIPULATED by and between Plaintiff Frank Zeiden ("Plaintiff"), and Defendant United States Department of Agriculture, as follows:

  1. The parties hereby agree to settle and compromise the above-entitled action under the terms and conditions set forth herein, which shall be in full settlement and satisfaction of any and all claims, demands, rights, and causes of action of whatsoever kind and nature, arising from and by reason of any and all known and unknown, foreseen and unforeseen, bodily and personal injuries and the consequences thereof, resulting, and to result, from the same subject matter that gave rise to the above-captioned lawsuit, for which Plaintiff Frank Zeiden or his heirs, executors, administrators, or assigns, and each of them, now have or may hereafter acquire against the United States of America, its agencies, agents, servants, and employees.

  2. Plaintiff will dismiss this action with prejudice.

  3. Both parties agree to bear their own costs and fees.

  4. The disqualification of plaintiff's business from the Food Stamp Program remains in place and is not affected by this agreement.

  5. Defendant agrees not to make an affirmative report to another agency of plaintiff's disqualification from the Food Stamp Program, unless required by law including but not limited to the Freedom of Information Act or in the event of an unanticipated need to defend. Defendant will notify plaintiff a reasonable amount of time before such disclosure.

  6. Regarding the affirmative reports described in the preceding paragraph, the parties negotiated the terms of this agreement on October 19, 2005. As of that date, Defendant believed that no affirmative reports of Mr. Zeiden's disqualification, that would fall within this agreement have been made to date.

  7. If plaintiff sells or otherwise changes legal title of the business, defendant agrees that any resulting civil penalty shall be reduced to 2/3 of its applicable level.

  8. Mr. Zeiden acknowledges that the USDA gathered information which suggests that activity in his business did not comply with applicable regulations. However, Mr. Zeiden acknowledges no personal wrongdoing.

  9. The parties agree that should any dispute arise with respect to the implementation of the terms of this Agreement, Plaintiff shall not seek to rescind the Agreement and pursue its original causes of action. Plaintiff's sole remedy in such a dispute is an action to enforce the Agreement in district court. The parties agree that the district court will retain jurisdiction over this matter for the purposes of resolving any dispute alleging a breach of this Agreement.

  10. Plaintiff hereby releases and forever discharges the United States and any and all of its past and present officials, employees, agencies, agents, attorneys, their successors and assigns, from any and all obligations, damages, liabilities, actions, causes of action, claims and demands of any kind and nature whatsoever, whether suspected or unsuspected, at law or in equity, known or unknown, arising out of the allegations set forth in the pleadings in this action. 11. The provisions of California Civil Code Section 1542 are set forth below:

"A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor."
Plaintiff, having been apprised of the statutory language of Civil Code Section 1542 by his attorneys, and fully understanding the same, nevertheless elects to waive the benefits of any and all rights it may have pursuant to the provision of that statute and any similar provision of federal law. Plaintiff understands that, if the facts concerning Plaintiff's injuries and the liability of the government for damages pertaining thereto are found hereinafter to be other than or different from the facts now believed by them to be true, the Agreement shall be and remain effective notwithstanding such material difference.

  12. This instrument shall constitute the entire Agreement between the parties, and it is expressly understood and agreed that the Agreement has been freely and voluntarily entered into by the parties with the advice of counsel, who have explained the legal effect of this Agreement. The parties further acknowledge that no warranties or representations have been made on any subject other than as set forth in this Agreement. This Agreement may not be altered, modified or otherwise changed in any respect except by writing, duly executed by all of the parties or their authorized representatives.



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