This Settlement Agreement is made and entered into this 26th day of January 2006, by and among SUNBORNE
XII, LLC, CALEB DEVELOPMENT, LLC, and WOODMEN JOINT VENTURE, LLP (collectively,
"Sunborne") and CIRTRAN CORPORATION,
CIRCUIT TECHNOLOGY CORPORATION, CIRCUIT TECHNOLOGY, INC., IEHAB HAWATMEH,
ROGER KOKOSYON, and RAED HAWATMEH (collectively, "CTC") (CTC and Sunborne, collectively the
A. Sunborne is the owner of an office/warehouse building located at 3650-3750 North Nevada Avenue,
Colorado Springs, El Paso County, Colorado (the "Property"), the same having the following legal description:
Lots 1 and 2, Block 1, TRW Subdivision No. 2, El Paso County, Colorado.
B. Pursuant to a Net Lease dated January 8, 1998 ("Master Lease"), Sunborne leased to ETA Technologies
Corporation ("ETA") approximately 142,500 square feet of the Property. Subsequently, ETA assigned its
leasehold interest to Colorado Electronics Corporation ("CEC").
D. On or about December 4, 1998, CTC leased approximately 17,327 rentable square feed of the Leased
Premises to Parkway Products, Inc. ("Parkway"). In or about October 1999, Parkway vacated its portion of the
Leased Premises and ceased paying rent to CTC. The Parties claimed that Parkway breached of its sublease and
that they had a concurrent right to assert claims against Parkway for damages (the "Parkway Claim").
E. In December 1999, Sunborne retook possession of the Leased Premises. Sunborne thereafter filed suit against
CTC in the District Court of El Paso County, Colorado, Case No. 99 CV 2870 (the "Lawsuit"). Sunborne
asserted various claims against CTC, and CTC asserted a counterclaim against Sunborne.
F. CTC entered into a settlement agreement with Sunborne with respect to the Lawsuit in January 2002 (the
"First Settlement Agreement").
G. Sunborne thereafter obtained a judgment against CTC in Colorado District Court in November 2002 (the
H. The Judgment was also filed in Utah District Court in Feb