LAW OFFICES

GIBSON & LOWRY

234 PORTAGE TRAIL, CUYAHOGA FALLS, OHIO 44221

ADDRESS ALL CORRESPONDENCE TO:

P.O. BOX 535, CUYAHOGA FALLS, OHIO 44222 (330) 929-0507

FAX: 1330) 929"6605 or (330) 916-6434

RANDAL A. LOWRY MICHAEL A. WEINBERGER JEROME G. REIDY MICHAEL J. MORAN* KENNETH L. GIBSON

MARK S. WEINBERGER * SHARYL W. GINTHER MORA LOWRY KEVIN M. STEPHEN MARISA A. LOWRY

WARREN W. GIBSON [1827 - 2005]

'ALSO AOMITIED TO PRACTICE IN FLORIDA

July 21, 2010

To All Creditors and Interested Parties,

Case No: 09-50469

To Whom It May Concern:

Enclosed herewith please find the motion to compromise controversy with the 20A notice.

Very Truly Yours,

-7)i!i"~,,~.\

/I<+c ,..:...r,l/ '

Kenneth L, Gibson Attorney at Law

KLG/ajr enclosure

IN THE UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION AT AKRON

IN RE:

CASE NO. 09-50469

KELLY V. GEARHART and TAMARA D. LOWE

CHAPTER 7

JUDGE MARILYN SHEA STONUM

Debtors

MOTION FOR AUTHORITY TO COMPROMISE CONTROVERSY

WITH ROBERT M. JONES, JR. DANIEL L. PHILLIPS, CHRIS MOLINA, PEJIHOTA, LLC, PE-JI-HO-TA LLC, AND PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC

Now comes Harold A. Corzin, Trustee, by and through his

attorney, and hereby moves the court for an order authorizing

and empowering the trustee to compromise the controversy

existing between the estate of Kelly V. Gearhart and Tamara D.

Lowe and Robert M. Jones, Jr.r Daniel L. Phillips, Chris Molina,

Pejihota, LLC (California) r Pe-Ji-Ho-Ta LLC (Nevada), and

Pejihota of San Luis Obispo County, LLC, (collectively referred

to as Pejihota) and for cause states that:

1

1. The Trustee brought an adversary proceeding against

Pejihota alleging that the debtor Kelly V. Gearhart (Gearhart)

had made a fraudulent conveyance to Pejihota by resigning as a

member which resignation had the effect of increasing the value

of the interests of the remaining members.

2. Extensive discovery was conducted regarding:

a. the failure of Gearhart to disclose the transfer of his membership interest to the other members;

b. the failure of Gearhart to disclose his right of reimbursement of advances totaling $646,190.53 plus interest;

c. the value of the membership interest which was transferred; and,

d. the status and likelihood of success of the efforts of the Salinan tribe and Pejihota to gain federal recognition for the tribe.

3. As a result of the discovery and consultation with an

expert retained by the Trustee, the Trustee has determined that

neither Pejihota nor the individual Defendants were responsible

for Gearhart's failure to disclose his resignation or his right

of reimbursement to the bankruptcy Trustee or the Court; that

Pejihota and the individual Defendants each agree that the

bankruptcy estate succeeds to the right of Gearhart for

reimbursement of advances totaling $646,190.53 plus interest;

that the value of the membership interest which Gearhart

2

transferred was substantial; and that there is a reasonable chance that the Salinan tribe would and should qualify for federal recognition, although that process will be lengthy and will require additional funds not available from the bankruptcy estate.

4. The Trustee's complaint alleged that the remaining members of Pejihota received a transfer of Gearhart's interest and paid less than fair consideLation for that membership

interest.

The remaining members testified during deposition

that Gearhart's resignation was not part of an attempt to conceal assets from the bankruptcy estate, but that his resignation was requested because it was reasonably believed that his continued involvement 1n the project would taint the Salinan tribe and the project, as Gearhart was being investigated for criminal and fraudulent activity in California. The remaining members believed that Gearhart's continued involvement would jeopardize the recognition process and, ultimately, the ability of the Salinan tribe to obtain a gaming

license.

Further, the remaining members did not want to

continue to associate with Gearhart in light of the disclosures being made about his outside conduct.

5. All parties recognize that the success of the project

3

1S key to obtaining the rnaXlmum benefit to the creditors of the

bankruptcy estate. Further litigation would only serve to

unnecessarily delay the recognition project and to discourage

the pursuit of further investment which is necessary to its

success.

6. The terms of the settlement are described in the

settlement agreement attached as Exhibit A hereto, but are

briefly summarized below:

a. Pejihota will pay the sum of $20,000 to the Trustee immediately upon approval of this compromise which will cover the Trustee's costs, expert fees and attorney's fees in investigating this dispute;

b. The Trustee shall receive a one-fourth membership interest in Pejihota of San Luis Obispo County, LLC, which is the entity currently owning the rights to the Omnibus Agreement with the Salinan tribe;

c. The Trustee will be a silent partner in this project, leaving the day to-day management to the remaining members, but retaining sufficient rights to protect the trustee's interest;

d. The remaining partners will have the right to buy-out the Trustee's membership interest by repaying the advances totaling $646,190.53 plus interest (as described in the Omnibus Agreement) if this buy-out option is exercised within 18 months following the date of entry of the order approving this cornprpmise (which period may be extended to two years under some circumstances as described in Exhibit A);

e. If the buy-out option is not exercised, the Trustee will remain a member and will be entitled not only to reimbursement of advances, but also to any profits

d i st r Lbut.ed to members as a result of succes sful

4

federal recognition and the resulting economic development;

f. The pending adversary proceeding will be dismissed with prejudice as to all Defendants and Pejihota will be responsible for court costs.

7. This settlement places the bankruptcy estate in the

same position as if the prepetition transfer had not been made.

The Trustee gives up his right to pursue individual judgments

against the Pejihota defendants in return for their efforts to

increase the likelihood of a significant recovery for creditors

if the federal recognition project is successful or if the buy-

option is exercised.

The exercise of the buy-option would

result in a significant benefit to the estate and that benefit

would be capable of distribution earlier than any ultimate

distribution of profits.

It is estimated that the minimum time

until the distribution of profits would occur under a favorable

federal recognition scenario would be approximately ten years.

The Trustee has the option of distributing the creditors'

interest in this project in kind in trust for the creditors with

a third-party trustee, or of reopening the estate for the

purpose of making further distributions to creditors.

WHEREFORE, the Trustee requests this Court to approve the

settlement of this controversy on the terms set out above and to

authorize the Trustee to dismiss his adversary Complaint against

5

all Defendants named therein, with prejudice, at Defendants'

costs.

GIBSON & LOWRY

/s/ Kenneth L. Gibson Kenneth L. Gibson (0018885) Michael J. Moran (0018869) Attorneys for Trustee

234 Portage Trail

Cuyahoga Falls, OH 44221 (330) 929-0507 (Phone) (330) 929-6605 (Fax)

CERTIFICATE OF SERVICE

A copy of this motion and 20A Notice was filed electronically and served via the courts' electronic docketing system on July 21, 2010 upon the following:

James A Amodio, brownlaw@zoominternet.net

Kathryn A. Belfance, kb@rlbllp.com

Jonathan P. Blakely, jblakely@westonhurd.com

Kate M Bradle~, kbradley@brollse.com

Samuel G. Casolari, scasolari@mdwcg.com, rlmoore@mdwcg.com, dediana@mdwcg.com

Christine K. Corzin, ccorzin@csu-laH.com

Nada G. Faddoul, nfaddoul@stark-knoll.com

Marc P Gertz, mpgertz@goldman-rosen.com

Kenneth L Gibson, gibsonecf@yahoo.com

S. Craig Hunter, craighunterlaw@sbcglobal.net Matthew S. Kennedy, msk@kennedylawrealty.com

6

Patrick T. Lewis, plewis@bakerlaw.com Michael J. Moran, moranecf@yahoo.com

Joseph C. Pickens, jpickens@cwslaw.com, khines@cwslaw.com John J. Rutter, jrutter@ralaw.com

G. Andrew Slater, aslater@kmulaw.com

Martha R. Spaner, martha.spaner@rslegal.com

John Susany, jsusany@stark-knoll.com

Susan P Taylor, staylor@brouse,com

United States Trustee

Peter G. Tsarnas, ptsarnas@goldman-rosen.com Michael S. Tucker, mtucker@ulmer.com

Phyllis A Ulrich, bankruptcy@carlisle-Iaw.com

Gilbert B Weisman, NOTICES@BECKET-LEE.COM

Maria D. Giannirakis, ust06 maria.d.giannirakis@usdoj.gov

A copy of this motion and 20A Notice was served via regular U.S. mail on July 21, 2010 upon all parties on the attached list.

/s/ Kenneth L. Gibson Kenneth L. Gibson Attorney for Trustee

7

EXHIBIT

SETTLEMENT AGREEMENT

Whereas, Harold A. Corzin (~Corzin"), is the Trustee of the bankruptcy estate of Kelly A. Gearhart and Tamara Lowe, case number 09 -504 69, ("Bankruptcy Estate") in the United States Bankruptcy Court for the Northern District of Ohio, and,

Whereas, Robert M. Jones, Jr., Daniel L. Phillips, and Chris Molina, ( collectively, \\ Indi vidual De f endant.s ") and PEJIHOTA, LLC, PE-JI-HO-TA, LLC and PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC are Defendants in an adversary proceeding in the United States Bankruptcy Court for the Northern District of Ohio adversary number 09-5094, and,

Whereas, the parties desire to resolve the controversy set forth in the adversary proceeding, subject to notice to creditors and court approval,

Therefore, the parties agree as follows:

1. The Individual Defendants will pay to Corzin the sum of Twenty Thousand Dollars ($20,000) within 5 days after court approval of this settlement.

2. The Operating Agreement of PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC (~LLC") shall be amended as follows:

a. Exhibit A of the Operating Agreement shall be amended to reflect that Corzin, as Trustee, is an initial member with an interest of 25%. The interests of the remaining members will also be listed at 25%.

b. The LLC shall assume the obligations of Pejihota, LLC of Nevada as reflected in the minutes March 5, 2007 (attached as Exhibit A hereto) and any sums payable to Gearhart under section E of those minutes ("Advances") will be paid to Corzin. It is agreed that the total Advances by Gearhart, totaling $646,190.53, as set forth on Exhibit B attached hereto! shall be reimbursed from monies received from the Tribe should the Federal Recognition process be successful, together with interest, pursuant to the terms and conditions as set forth in the Omnibus Agreement with the Tribe.

c. Section 4.1 of the Operating Agreement of the LLC shall be amended to reflect 4 initial members.

d. Section 4.4 of the Operating Agreement of the LLC to permit Corzin to transfer his interest in the LLC to a Trust for the benefit of creditors if approved by the bankruptcy court, following notice and an opportunity for the Defendant members or their proxies to be heard with respect to such appointment. The individual defendants shall have the option to purchase Corzin's interest in the LLC by reimbursing to Corzin those sums due upon the Advances as set forth on Exhibit B together with interest as provided in the Omnibus Agreement. Such option shall be exercised no later than eighteen (18) months following the date of entry of the Bankruptcy Court's order approving this settlement. The option period will be extended for an additional six (6) month period upon the occurrence of either of the following:

(i) the Bankruptcy Estate is not ready to close at the conclusion of the initial eighteen (18) month period due to matters unrelated to those at issue in this Settlement Agreement, or

(ii) the LLC and/or Individual Defendants make a non-refundable payment to the Bankruptcy Estate of not less than $10,000.00 towards the buy-out option on or before the conclusion of the initial eighteen (18) month period.

If not exercised, such option shall be void. If exercised, all funds must be paid within 60 days. No other right of purchase of Corzin's interest shall be permitted under the Operating Agreement except with Corzin's consent and any necessary court approval.

e. The day to day operations of the LLC shall be

governed by a management group consisting of the individual defendants, subject to the following limitations:

1. Pursuant to § 4.2 of the LLC Operating Agreement, Corzin's consent shall be required for any transaction which would dilute Corzin's ownership interest in the LLC.

ii. Corzin's consent shall be required for any transaction which would result in any other person receiving priority over Corzin in the reimbursement of Advances under the Omnibus Agreement with the Tribe.

iii. Corzin's consent shall be required for any action modifying or transferring any rights of the LLC under the Omnibus Agreement or any decision refusing to enforce the terms thereof if the rights of the LLC are threatened. The Trustee will agree to changes which are necessary to market the project so long as such changes do not unfairly discriminate against the Trustee's interest.

iv. No other member shall have the right to bind Corzin to any affirmative obligation, but shall subject to the limitations herein have only the power to bind the LLC as a whole. There is no implied agency in the other members to bind Corzin or the estate to any obligations which might reduce Corzin's distributions to creditors from other assets of the bankruptcy estate.

v. Corzin's consent shall be required for voluntary dissolution of the LLC, which consent shall not be unreasonably withheld.

V1. Corzin's consent shall be required for distributions of assets or income to members other than in equal proportion. This provision does not affect an individual

member's entitlement to receive reimbursement for costs and expenses incurred in furtherance of the LLC's stated purpose.

f. Corzin shall retain, subject to the continuing obligation of confidentiality the records which he currently has in his possession or control.

In addition to Corzin's right to records under the Operating Agreement, Corzin may request periodic status reports (not more frequently than quarterly) which are necessary to fulfill his reporting requirements to the Court and the US Trustee's Office and the LLC and its remaining members will provide such reports within 30 days of such request (collectively, information to which the Trustee is entitled under the Operating Agreement and periodic status reports shall be referred to as ~General Information"). Corzin will keep specific information of a confidential nature confidential, but will be permitted to give General Information to the Court and the US Trustee's office as required,

g. Within 30 days of the Trustee's receipt of payment pursuant to the exercise of the option described in paragraph 2(d), or within 30 days of any other transfer or termination of the Trustee's interest in the LLC, the Trustee shall deliver to the individual defendant members' counsel those confidential documents and records in the Trustee's possession and/or control, and the Trustee shall not retain any copies or images of such documents and records. This provision will not apply in the event of an on-going dispute over the termination or transfer of the Trustee's membership interest or in the event that the Trustee transferred such interest into a trust for the benefit of creditors, provided that such trustee signed an agreement to be bound by confidentiality and turnover of the documents upon proper termination of the trust's membership interest.

3. Corzin releases Robert M. Jones, Jr., Daniel L.

Phillips, and Chris Molina, PEJIHOTA, LLC, PE-JI-HO-TA, LLC and PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC from any and all claims arising out of the resignation of Gearhart from Pejihota LLC of Nevada, the dissolution of Pejihota LLC (California), the dissolution of Pejihota LLC (Nevada), the assignment of the Omnibus Agreement from Pejihota LLC (Nevada) to Pejihota of San Luis Obispo County, LLC and all related conduct raised or which could have been raised in the Adversary Proceeding.

4. Upon approval of this Settlement and payment of the Twenty Thousand Dollars as set forth in paragraph 1, the Adversary Proceeding will be dismissed, with prejudice, at the Defendants' costs. Corzin will not submit a Bill of Costs and the only costs borne by the Defendants shall be ordinary court costs charged by the clerk of courts.

5. Each party shall bear their own legal and expert fees.

6. The United States Bankruptcy Court for the Northern District of Ohio shall retain continuing jurisdiction over the agreement and the parties thereto to enforce the terms of this agreement and the Confidential Protective Order and all Supplements thereto shall remain in effect as permanent orders of the Court.

[THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK)

Robert M. Jones, Jr.

Daniel L. Phillips

Chris Molina

PEJIHOTA, LLC (California)

By:

Its:

PE-JI-HO-TA, LLC (Nevada)

By:

Its:

PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC

By:

Its:

Harold A. Corzin, Trus·tee

1689117 v_Ol \ 122213.0001

American Express Patrick Aurignac Alice Carrol
Box 0001 Aurignac & Asscociates P.O. Box 1736
Los Angeles. CA 90096-0001 863 Pacific Street Atascadero, CA 93423-1736
San Luis Obispo, CA 93401-3615
Andrew T. Clark Lynn Craig David Y, Fanner
Meaden and Moore LLP
1246 San Mateo Drive 1254 Marsh Street
1100 Superior Avenue. Suite 1100 San Luis Obispo. CA 93401-4522 San Luis Obispo. CA 9340 1
Cleveland, OR 44114
First Bank of San Luis Obispo Fred Russell Retirement Trust Fred Russell, CPA Retirement'
P.O, Box 60839 Russell Mainini & Franklin c/o Diehl & Rodewald
Santa Barbara, CA 93160-0839 615 Clarion o, Ste 1 1043 Pacific Street
San Luis Obispo, CA 93401-8197 San Luis Obispo, CA 93401
Kelly V. Gearhart ~chaelJ. FIavvkjns Gearhart Development Corp
P.O. Box 262 5250 Carrizo Road Individual 401k Plan
Wadsworth, on 44281 Atascadero, CA 93422-1506 273 Main Street
Wadsworth, OR 44281
8LO Investment Inc. San Luis Ttust Bank Smith Electric
863 Pacific Street 1001 Marsh Street 1340 W. Betteravia Rd
San Luis Obispo, CA 93401-3615 San Luis Obispo, CA 93401-3629 Santa Maria, CA 93.455MI030
Rick Stinchfield Thomas Leslie Shelton Union Asphalt Inc.
P.o.·Box 1390 c/o S. Craig Hunter P.O. Box 1280
Riverbank, CA 95367 P.O. Box 13810 Santa Maria, CA 93456-1280
San Luis Obispo, CA 93406
WH Carrol Family Tins Brandon Hindrichs Michael and Jane Weisheitinge
P.O. Box 1736 7380 Encinal Avenue 5530 Rio Blanco Court
Atascadero; CA 93423-1736 Atascadero, CA 93422 Atascadero, CA 93422 . eCAST Settlement Corporation.

P.O. Box 35480 Newark, NJ07193-5480·

Heritage Oaks

545 Twelfth Street Paso Robles, CA 93446

Heritage Oaks Bank P.O. Box 6076

Atascadero, CA 93423-6076

Interface Manufacturing Inc. -----'PXJ.B0x877

Atascadero, CA 93423-0877

Yvonne Jesser KC Design Group Inc.

Howard-Ham1a-Sffiythe-~e'r-C-o,:-::-.t ---2Io56-1&-Bl-Gamin0-Real~uite-A-

3070 W Market Street Atascadero, CA 93422-3314

Akron, OR 44333

Kirk Construction

8830 Morro Road Atascadero, CA 93422-3953

Leslie Cederquist, Trust c/o Aurignac & Associates . 863 Pacific Street

San Luis Obispo, CA 93401-3615

TamaraD. Lowe

P.O. Box. 262 Wadsworth, OH 44281

MW Architecture Inc.

225 Prado Road, Suite G San Luis Obispo, CA 93401

Michael Fredericks Paving P.O. Box 573 "

Atascadero, CA 93423-0573

Gearhart Development Corp. Indlvidua1401KPlan

273 Main Street Wadsworth, OR 44281 "

IP of A Columbus Works, LLC c/o Capitol Services, Ino.

614 South Dupont Highway Dover, DE 19901

Washington Mutual

P.O. Box 78148 Phoenix, AZ &5062-8148

Myrtle H. Arends

1407 Westwood Avenue Wenatchee, WA 98801

Shaunna Sullivrui

Sullivan & Associates, A Law Corp 2238 Bayview Heights Drive, Suite C Los Osos, CA 9340;2"

Mora Landscaping 9125 Mountain View Atascadero, CA 93422

E. Murray Powell

19631 Vineyard Lane Saratoga, CA 95070-4504

R. Thompson Consulting 7600 Morro Road Atascadero, CA 93422~4439

RaboBank P.O. Box 1845

"" El Centro, CA 92244-1845

Recovery Management Systems Corp

25 S.E. 2nd Avenue, Suite 1120 Miami, FL 33131

David Frank Rios, Trustee 45847 Watm Springs Blvd. Fremont, CA 94539-6779

John Ross

13595 Old Morro Road Atascadero, CA 93422-2011

Procopio, Cory, Hargreaves and Savitoh Jeffrey Isaacs

530 B Street, Suite 2100 " San Diego, CA 92101

Procopio, Cory) Hargreaves and Savltch Gerald Kennedy

530 B Street, Suite 2100 San Diego, CA 92101"

Mid Coast Mortgage 1402' Marsh Street

San Luis Obispo, CA 93401-21

BID Management, LLC c/o Brandon Hinricbs "7380 Encinal Avenue Atascadero, CA 93422

Thomas H. and Lynn K. Wooldridge

281 Mercedes Lane Arroyo Grande, CA 93420

North County Plastering P.O,Box291

Atascadero, CA 93423-0291

RaboBank

Credit Service Center P.O. Box'6002

Arroyo Grande, CA 93421-60C

Regal Electric P.O. Box 2437

Atascadero, CA 93423-2437

LaNeyaRoss

13595 Old Morro Road Atascadero, ca 93422-2011

John Hancock Life Insurance Company ( cia esc - Lawyers Incorporating Service 50 W. Broad Street, Suite 1 BOO Columbus,OR43215

Nordman Cormany Hair & Compton LLP Fred Carrington Kirby, Noonan, Lance and Hoge, LL

Attn: WilliamB. Winfield " al "Mr. Sanchez & Mr. Noonan

lOGO Town Center Drlve, 6'l'"P"=ro=or,-------l-WSO-El-Camino..R.e -------:3;,:..;5;:,:.O.;,T=en~th::-A~y:...::.en.::.-u=..:e,-iS:..:..ui;;-:te~13;:;-;O\XO--

P,O.Box9100 Atascadero, CA 93422 San Diego, CA92101

Oxnard, CA93031-9100

Beverly Kavall 950 Huaens Road

Arroyo Grande, CA 93420

Form 820A (Official Form 20AI (9/97 )

IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF OHIO EASTERN DIVISION AT AKRON

IN RE:

CASE NO.

09-50469

KELLY V. GEARHART & TAMARA D. LOWE

IN PROCEEDINGS UNDER CHAPTER 7

Debtor

BANKRUPTCY JUDGE MARILYN SHEA-STONUM

Form 2DA. Notice of Motion of Harold A. Corzinr Trustee to Compromise Controversy

Kenneth L. Gibson, Attorney for Harold A. Corzin, Trusteer has filed papers with the court to Compromise Controversy existing in the above-captioned estate

Your rights may be affected. You should read these papers carefully and discuss them with your attorneYr if you have one in this Bankruptcy case. (If you do not have an attorney, you may wish to contact one.)

If you do not want the court to grant said compromise, or if you want the court to consider your views on the motion, then on or before August 11th, 2010, you or your attorney must:

File with the court a written request for hearing {or, if the courtrequires a written response, an answer, explaining your position}

at:

Clerk of the O.S. Bankruptcy Court 455 Federal Building, U.S. Courthouse 2 South I"lain St.

Akron, OH 44308

If you mail your request/response to the court for filing, you must mail it early enough so the court will receive it on or before the date stated above.

You must also mail a copy to:

Kenneth L. Gibson, Esq. Attorney at Law

234 Portage Trail, P.O. Box sjs Cuyahoga Falls, Ohio 44222

If you or your attorney do not take these steps, the court may decide that you do not oppose the relief sought in the motion and may enter an order granting authority to compromise.

Date: July 21, 2010

Signature:

Name Address:

Is/Kenneth L. Gibson

Kenneth L. Gibson 0028885 234 Portage Trailr Cuyahoga Falls, OH 44221

IT IS SO ORDERED.

Dated: 02:04 PM August 202010

IN THE UNITED ST}\TES NORTHERN DISTRJ

EASTERN DIVISIuN AT llliKUN

IN RE:

CASE NO. 09-50469

KELLY V. GEARHART and TAMARA D. LOWE

CHAPTER 7

JUDGE ~1ARILYNSHEA STONUM

Debtors

ORDER AUTHORIZING COMPROMISE OF CONTROVERSY WITH ROBERT M. J-ONES, JR. DANIEL L. PHILLIPS, CHRIS MOLINA, PEJIEOTAF LLC, PE-JI-HO-'rA LLC, AND PEJIHOTA OF SAN LUIS OBISPO COUNTY, LLC

This cause came on for consideration and! it appearing to

the court that the parties have resolved the differences

heretofore existing ?etween them, that notice was given to

creditors, the debtors! and all other parties-in-interest of the

trustee's motion and the terms of the proposed compromise, and

that no objection or request for hearing upon same has been

received within the time period set forth in the notice, and

that acceptance of the proposal to compromise t.he controversy

1

7~3n~0047q8015

submitted by Robert M. Jones, Jr., Daniel L. Phillips, Chris

Molina, Pejihota, LLC (California), Pe-Ji-Ho-Ta LLC (Nevada)r

and Pejihota of San Luis Obispo County, LLC, (collectively

referred to as Pejihota) is in the best interests of the estate

and its creditors, It is therefore,

ORDERED, ADJUDGED and DECREED that Harold A. Corzin is

authorized and empowered to accept the settlement proposal made

by Pejihota. Specifically the Trustee is authorized to enter

into the settlement agreement attached as Exhibit A to the

Motion for Authority to Compromise Controversy which is

incorporated by reference herein and is authorized to take all

necessary actions Lo effectuate the terms of the settlement,

including dismissal of the pending adversary proceeding with

prejudice.

Submitted by:

lsi Kennethl!!, _ _§ibsOD _

Kenneth L. Gibson, Esq. - 0018885 Michael J. Moran, Esq. - 0018869 234 Portage Trail

Cuyahoga Falls, 011 44221

Ph: (330) 929-0507

Fx: (330) 929-6605

8-mail; gibsonmoran@hotmail.com

Attorneys for Plaintiff Harold A. Corzin, Chapter "f Trustee

2

(\fU7~O 7"J;~o<:onl.. 7QJ=t01"

Approved by:

/s/ John J. Rutter

~~~-------------

John J. Rutter, 8sq.

Bruce R. Schrader, II, Roetzel & Andress, LPA 222 S. Main Street

Akron, OH 44308

Ph: (330) 376-2700

Fx : ( 330 ) 376 - 4 577

E-mail: jrutter@ralaw.com E-mail: bschrader@ralaw.com Attorneys for Defendants

0079186 Esq. - 0039418

PARTIES TO BE SERVED ELECTRONICALLY:

James A Amodio, brownlaw@zoominternet.net

Kathryn A. Belfance, kb@rlbllp.com

Jonathan P. Blakely, jblakely@westonhurd.com

Kate M Bradley f kbradleY~~_~[OUs_~ .. _C::_~L~l

Samuel G. Casolari, scasolari@mdwcg.com, rlmoore@mdwcg.coffiF dediana@md\vcg. com

Christine K. Corzin, ccorzin@csu-law.com

Nada G. Faddoul, nfaddoul@stark-knoll.com

Marc P Gertz; mpqertz@qoldman-rosen.com

Kenneth L GibsonF gibsonecr@yahoo.com

S. Craig Hunter, craighunterlaw@sbcglobal.net

Matthew S. Kennedy, msk@kennedylawrealty.com

Patrick '1'. Lewis r plewis@bakerlaw.com Michael J. MoranF moranecf@yahoo.com

Joseph C. Pickens, jpickens@c\vslalr!' com, khines@cwslavJ. com John J. Rutter, jrutter@ralaw.com

G. Andrew Slater T aslater@ kmulai>T. com

3

{1rL!7~O

7:<;503004798024

Martha R. Spaner, martha.spaner@rslegal.com John Susany, jsusany@stark-knoll.com

Susan P Taylor, staylor@brouse.com

United States Trustee

Peter G. Tsarnas, .E_tsarnas@goldman-rosen.com Michael S. Tucker, mtucJc.er@ulmer.com

Phyllis A Ulr"ichr bankruptcy@carlisle-law. com

Gilbert B Weisman, NOTICES@BECKET-LEE.COM

Maria D. Giannirakis, ust06 maria.d.giannirakis@usdoj.gov

ALL PARTIES LISTED ON ATTACHED SHEET TO BE SERVED BY REGULAR U. S. tl"lAIL

4

I

~!

American Expms Box 0001

Los Angeles, CA 90096·0001

AndrewT. Clark MeadGnand MooreLLP

1100 Superior Avenue, Suite 1100 ClfNehmd~ OH 44l 14

ptJm Bmlk QfSm Luis Obispo P.O. Box 608:39 SatrtaBerilara) CA 93160-0839

Kelly V. Gearlwt P.O. Box 262 ..

Wadsworth, OR 44~I

\ .

-

SLO~tIno.

863 Paoffio StreGt .

San Luis Obispo, CA 93401-3615

Rick Stinchfield P.O.·Bex 1390 Rive},'bamk, CA95367

WlJ Carrol Family Trils . P.O. Booc1736

Atasoruiero~. CA 93423-1736

. eCAST Sattlmoont Co.rpctatioo.

P.O. Box 35480 Newar~ NJ:·07199-5480·

Penick Aurign&c· Alitigruto & Amrooclatai! 1563 Pacifio Street .

S~ Luia Obispo, CA 93401-3615

Lynn Craig

1246 San Mateo Drlw

San Lui.s"Obfspo-. CA 93401M4522

Fred Russii>ll Retiremfmt Trust Russell Mmnini &. Franklin 615 Clarion Ct., Sfe 1

San Luis ~b.i8p~t CA 934Ul~g197

Michsel S. Hawkins

5250 CiIJ.1jZQ Road

Atascadero, CA 93422-1506

SanL-uis Ttust Bank 1001 Marlili SiTeet

San Luis Obispo, CA93401-3629

Th.o.mas Lealie Sheltcn elo S. Craig Huntat' r.o, Box. 13810

- San Luis Obispo, CA 934{)6

BrandonHlndricM 7380 Bncinal Ave.noo Atascadero, CA 93422

~Oaks

54:5 'I'welftb. S~t Paso Robles. CA ~446

p..jfue Cm:ro!

P.O.:Box 1736 Atascadefo~ CA914-23~1736

"

DtWid. y, Fanner 1254 Iv.Wah Street

San Luis Obispo, CA 934-0 1

FredR~CPA~eltt1 c/o Diehl & Rodewald .

1043 Paoi:fi.c Street

Sf!TI_ Luia Obispo, CA 93401

~arhattpevalopment Cos:p IndJ:tildwU 401k PlaIt

273 lVi:aiu Stroot

W~awGrt~ OR 44281 .

Smith.Eleotric

1340 W. Bettmvlallq

SI.;'1lta. Maria. CA 93:t55n1G30

Union Asphalt Inc.

P.O. Boor 1280 . 8anm.Mar~ CA 93456~!2~O

Afich.w ~ Jtm.e WeisililitiEggt 5530 RiQ Blence Court Atascadero" CA 93422

Herita~ OaksBMk P.D. Box 6076

Atesesdem, CA 93423..00'16

KfrkConstmction

8830 Morro.Road Ataseadeeo, CA 93422~3953

wslie Cedetquistt 'I'mst 0/0 Aurlgna.c &; MSOl:lrnreS . 863 Pacific'S1Ieet

San Luis Obispo) CA 93401~3615

Tam.tU'i!D. Lowe

P.o. Box 262 Wadsworth, OB 44281

0g~50469-mss Doc 448 FILED 07121/10 ENTERED 07/21/1013:37:20 Page 14 of 16

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- MW Arohitoofitre lnc. Michael Fredaricks Paving Mid Coast IyiOltgfl,
225 Prado Road, Suite G P.O.Box573 . 1402 Mm;sh Street
, San LuiB Obispo, CA 93401 Atascadoro~ CA 93423-0573 SanLuiB'Obisp~ CA.93401~2~:
GI.;~ru:t Development Cotp._ lP of A Columbus '\Yom, LLc B1HManagem.en~ tLC
Individual401KPlan cia Capitol ~oes, mo. c/o Bmudon mnriobs
'Xl3 Main Street 614 South Dupont Highway -7380 Encinal Avenue
Wadsworr.h" OK 44281 , Dover, DE 19901 Atasoodero~ CA 93422
Washington- MntuiU lvIyrtle H. Arenas ThoIIlBB H. and Lynn K.
P.O. Box 78148 1407 Westwood Avenue Wooldridge
Phoenix) AZ 85062--8148 Wenatohet;, WA 98801 un Mtlrcedes Lane
An:O)IU Gr~ CA 93420
Shmtma Sullivan Mora Landscaping North County Phltrtering
Sullivan & Aasooiatas, A Ltlw COlp 9125 Mountain View P.O. Box:291
223& Bayview Heights Drive. Suitt C Afasca~, CA 93422 Atasca.iL"'IO. CA 93423-0291
LO!l Osos. CA 93402-
E. Murray Powell R. 'I'hompson Consulting RaboBank
19631 VmeyardLu:Ie 7600 Morro Road Credit Service Center
Saratoga, CA 9507()"4504 Atasoadero} CA 9342;24439 P.O. Box'6002
ArroYO Grande, CA 93421-6002
RaboBank ReCovery Management 8Ystems Regal Electric
P.O. Box 1845 Col]) P.O. Box 2437
. El Centre, CA 92244-184:5 2S S.B. 2nd Avenue. Suite 1120 - 'Atascadero, CA934.23-2437
Miruni, FL33131
David Fnmk Rios, Trustee JohnRDss LaNeya Ross
45847 Warm. Springs Blvd. 13595 Old I$rro Road 13595 Old Morro Roa4
Fremont, CA 94539-6779 Atascader~ CA 93422-2011 Atrul'oadero~ ca 93422-2011
ProQopio~ CoIy. ~Wll md BaviiWa J1rocopio, Cozy~ Hmgi"eavoo and 8mItch Ioha lIanoork Lilt Inanrrmoa COlllpany (u
J~l'smlas OeraldKenned,v clo esc. Le.wyers rnl:O!{l~ Se1vloe
5$0 B S!taet, Suite 2100 530 B S~ Smte 2100 50 W. B1o~ StrCllt, ~ IBllQ
. San Diego. GA 921Ql San DiegO. CA 92101, . CalulllbiJD, OlN3tlS
Nordman Cottnany liUr Or. CDlDpton lJ.l>- Fred Carrington . Kirby, No~!.mule a;n.d floge-. tzc
Attn: WilfIamB. Winfield ~QR.e1'l1 'Mr. SIlUDh63 & Mr. Noonan
1000 'IOWiiQi!.1i(:ie1<Dtrve., 'tJb PlOOf Atascadero, CA 93422 §5()'tiiiJihAvenu~ Suiic }300
P.O, Box 9100 S~~go.~92101
Omllrd. CASl3031-9100
BeM:I1'ly Kovall
950 HUi\EmS Road
Anoyo Grandt; CA 93420 09-50469-mss Doc 448 FILED 07/21/10 ENTERED 07/21/10 13:37:20 Page 15 of 16