DocuSign Envelope ID: 1F8648FE-2727-4449-9B85-324D2ED450D3

SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT (this “Agreement”) is entered into effective as of

May 26, 2021 (the “Effective Date”) between Earnest Robert Russo, Jr. (“Russo”), on the one
hand, and the Utah Local Governments Trust (the “Trust”) and the city of Cottonwood Heights
(the “City”), on the other hand. Russo, the Trust, and the City individually are referred to herein
as a “Party” and collectively as the “Parties.”

Background

A. The City, Russo, and City Councilwoman Natalie Bruce (“Bruce”) are parties to a
lawsuit that currently is pending in the Third Judicial District Court of Salt Lake County, Utah,
Case No. 200903436 (the “First Lawsuit”). The First Lawsuit was initiated by Russo against
Bruce and the City.

B. In a second lawsuit pending in the Third Judicial District Court of Salt Lake
County, Utah, Case No. 200907157, (the “Second Lawsuit”), which was initiated by Bruce,
Bruce seeks a declaration from the Court “that the counterclaims and crossclaims asserted by
Bruce in the First Lawsuit are covered under the City’s insurance policy with the Trust because
those counterclaims and crossclaims “are defensive in nature and are part of Bruce’s defense
strategy.”

C. The Trust has filed a counterclaim in the Second Lawsuit against Bruce and Russo
seeking a declaration that it has no duty or obligation to defend or indemnify Russo or Bruce in
connection with the First Lawsuit and that it is entitled to reimbursement from Bruce and Russo
of the full amount that the Trust has paid on their behalf in connection with the First Lawsuit.

D. Russo, the City, and the Trust have agreed to resolve any and all disputes arising
out of or relating to the First Lawsuit and the Second Lawsuit on the terms set forth herein.

Agreement

NOW, THEREFORE, for good and valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1. Payment. Within twenty-one (21) days from the Effective Date, the Trust agrees
to pay Russo Seventy Thousand Dollars ($70,000.00). The Payment shall be made by check
payable to “Anderson|Hinkins Client Trust Account” and delivered to the law firm of
Anderson|Hinkins.

2. Releases by Russo. Russo, on behalf of himself and his heirs, agents,

representatives, and assigns, hereby waives any claims against, and forever discharges (i) the
Trust; (ii) the City; and (iii) Bruce, including each and any of their, as applicable, heirs, officers,
directors, agents, representatives, employees, affiliated entities, elected or appointed officials,
and assigns (collectively, including the Trust, the City, and Bruce, the “Releasees”), from and
against any and all claims, counterclaims, cross-claims, charges, demands, losses, damages,

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obligations, liabilities, grievances, actions causes of action, or suits at law and equity of
whatsoever kind and nature, including, without limitation, those that were or could have been
asserted in the First Lawsuit and/or in the Second Lawsuit (collectively the “Claims”).

3. Release by the Trust. The Trust, on behalf of itself and its agents, assigns, and
representatives, hereby waives any claims against, and forever discharges Russo, including
Russo’s heirs, agents, representatives, and assigns (collectively, including Russo, the “Russo
Releasees”), from and against any and all Claims.

4. Release by the City. The City, on behalf of itself and its agents, assigns, and
representatives, hereby waives any claims against, and forever discharges, the Russo Releasees
from and against any and all Claims.

5. Understanding – Mutual Release of Claims. The Parties understand and agree

that this Agreement constitutes a broad, general release of claims and that, following execution of
this document, unless specifically stated otherwise herein, Russo has no Claims against the Trust,
the City, and/or Bruce, and the Trust and the City have no Claims against Russo.

6. Express, Intended Third-Party Beneficiaries. The Parties hereto acknowledge and

agree that Bruce is an express, intended third-party beneficiary of the release provisions applicable
to her that are contained in this Agreement. Otherwise, there are no third-party beneficiaries to this
Agreement.

7. Dismissal of Claims, Counterclaims, and Crossclaims in Lawsuits. Upon receipt

of the Payment, Russo agrees to cause all of his claims, counterclaims and crossclaims that he has or
could have asserted in the First Lawsuit and in the Second Lawsuit promptly to be dismissed with
prejudice, with no party to the dismissals being assessed costs or attorney fees by the Court. Within
14 days of Russo’s dismissal of those claims, the Trust will take appropriate steps to dismiss and/or
otherwise eliminate any claims it has asserted against Russo in the Second Lawsuit. The Trust
expressly reserves all defenses and claims that it has or may have against Bruce, including in
connection with the Second Lawsuit.

8. Continued Defense. Notwithstanding this Agreement, the Trust will continue to

defend and indemnify the City and Russo against Bruce’s claims (including, without limitation, her
counterclaim and cross-claim) in the First Lawsuit as heretofore, subject to any and all applicable
reservations of rights heretofore asserted by the Trust in connection with the First Lawsuit.

9. Confidentiality. Russo agrees to keep the terms of this Agreement strictly

confidential until such time as an order of dismissal dismissing Russo from the Second Lawsuit has
been entered by the Court.

10. Cooperation. The Parties shall execute and deliver all documents, provide all
information, and take or forbear from all such action as may be necessary, appropriate, or
reasonably requested by any Party to achieve the purposes of this Agreement.

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11. Non-assignment of Claims; Lawfully Entitled. The Parties hereby covenant,

warrant, and represent that they have not assigned or transferred any of their rights to any of the
Claims released herein and that they are lawfully entitled to make this Agreement and to receive
the satisfaction described herein.

12. No Admissions. By entering into this Agreement, no Party admits any liability
or the existence of any fact supporting such liability; each Party disclaims any liability imputed
to it in connection with the dispute.

13. Choice of Law; Successors and Assigns; Attorneys Fees; Interpretation;

Integrated Agreement; Counterparts. This Agreement shall be governed by the laws of the
State of Utah. This Agreement shall be binding upon and shall inure to the benefit of the Parties
and their successors and assigns. This Agreement shall be construed as though all Parties
equally had drafted it. This Agreement sets forth the entire understanding and agreement
between the Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, representations, understandings, agreements, or arrangements between them,
whether written or oral, with respect to the subject matter hereof. The Parties agree that this
Agreement may be executed in multiple counterparts and, upon such execution, all the
counterparts taken together shall constitute one and the same agreement.

14. Amendments and Modifications. This Agreement can be changed only by an

instrument in writing and signed by the Party against whom enforcement of any waiver, change
or modification is sought.

15. Authority to Enter into This Agreement. Each of the Parties represents and
warrants that it has the full right and authority to enter into this Agreement, and the officer,
employee, agent, attorney, or other representative executing this Agreement on its behalf has the
full right and authority to do so, and to fully commit and bind the settling party to this
Agreement.

16. Reliance. Each party is entering into this Agreement solely in reliance on its own
knowledge, belief and judgment and after full opportunity to consult with counsel, and not
(except as otherwise specified in this Agreement) on any representation made by the other party
or others in its behalf.

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

The “Trust:” “Russo:”

Utah Local Governments Trust ___________________________

Earnest Robert Russo, Jr.
_____________________________

By:____________________
Steven A. Hansen (Print Name)

Its:_____________________(Print
CEO Title)

The “City”

Cottonwood Heights City

_____________________________
Michael J. Peterson, Mayor

Attest:

____________________________
Paula Melgar, Recorder

Doc ID: 8edfe0e603bba70ed8efcb703c982d9a21731f73

DocuSign Envelope ID: 1F8648FE-2727-4449-9B85-324D2ED450D3

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

The “Trust:” “Russo:”

Utah Local Governments Trust ___________________________

Earnest Robert Russo, Jr.
_____________________________

By:____________________ (Print Name)

Its:_____________________(Print Title)

The “City”

Cottonwood Heights City

_____________________________
Michael J. Peterson, Mayor

Attest:

____________________________
Paula Melgar, Recorder