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Yi./ {3 WHEREAS, International presented the Letter of Credit for payment, and Bank One paid the sum of $25,000.00 to International; and WHEREAS, the collateral securing the MBank Note has been sold, and all proceeds have been applied to the balance due on such note, but a deficiency balance remains due and owing; WHEREAS, International was required to issue sigh t drafts and written certifica tion that Bonds have been executed on behalf of CEI in favor of various obligees and, among other things, that in the event that International's liability under the Bonds was satisfied, the remaining collateral funds relating to the two Letters of Credi t (after certain expenses) would be refunded to CNB (Liberty) and MBank (Bank One), respectively; and WHEREAS, a dispute arose between CEI and the City regarding the con- struction of the Project; and ~ WHEREAS, on January 10, 1991, CEI filed for Chapter 11 bankruptcy protection in Case No. 91-10097-LK, pending in the United States Bankruptcy Court for the Western Division, styled In re Coffee Equipment, Inc. aka Coffee Excavation, Debtor (the "CEI Bankruptcy Case "); and WHEREAS, in January 1991, In terna tional issued its sigh t draft and certi- fied, among other things, that in the event, of International's liability under the Bonds was satisfied, International would refund the remaining collateral funds relating to the Letters of Credit (after certain expenses) to Liberty and Bank One, respectively; and WHEREAS, subsequent thereto, the City made demand on International for damages and completion costs allegedly due on the Project; and WHEREAS, on February 22, 1991, the City terminated CEI's services under the construction contract; and COMPROMISE AND SETTLEMENT AGREEMENT AND MUTUAL RELEASE Pap:e 3