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SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS This Settlement Agreement and Release of all Claims (hereinafter "this Agreement') is entered into by and between JOHN N. WOODS and KERRY K. WOODS ("Woods") and KITTITAS COUNTY (hereinafter "the County") with regards to permitting, review, determinations and improvements relating to or arising from development of BLACK HORSE AT WHISKEY CREEK and associated land use processes. I. RECITALS A. Litigation. Kittitas County accepted, processed, and granted development approval to DR Horton for the development of a residential subdivision known as Black Horse at Whiskey Creek. Woods objected to the land use application and expressed concerns about development impacts of the project on Whiskey Creek and his adjacent property. The parties have worked on a collaborative basis with State of Washington, Department of Fish & Wildlife, Ellensburg Water Company, and other property owners to address and improve floodplain conditions and water conveyance through Whiskey Creek. This Agreement is intended to memorialize those agreements and to reach final settlement of all matters related thereto. B. Full and Final Settlement. The parties to this Agreement desire to settle and resolve, fully and finally, all claims of all parties to this Agreement which have been or could have been alleged in the Claim. C. Resolution of Disputed Claims. This Agreement expresses the full and complete settlement of any and all pending or possible claims Woods has or may have against the County relating to Black Horse at Whiskey Creek Development and improvements to Whiskey Creek. This Agreement is a settlement of disputed claims and is not an admission of liability or damages or of any facts or disputed legal issues bearing on liability and damages or on the defenses asserted to such allegations. II. AGREEMENTS Based on the foregoing recitals, the parties to this Agreement hereby individually and mutually, agree as follows: I. Grant of Easement. Woods shall grant to Kittitas County an nonexclusive Easement for Stream Channel Access and Maintenance in form attached hereto as Attachment 1. The grant of easement authorizes Kittitas County to enter upon the Woods property and make changes to Whiskey Creek for the purpose of improving stream functions and reducing both the risk and scope of the mapped floodplain over the subject property. 2. Compensation. Kittitas County shall pay Woods the sum of One Hundred Seventy - Five Thousand Dollars ($175,000) as consideration for the grant of the subject easement and as full and final payment on any and all claims, demands, liabilities, or Page 1 of 4