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06-043, Dolphin Swim School Rescission Aareement and Mutual Release The City of Cupertino (City), 10300 Torre Avenue, Cupertino, California 95014-3255 and Joseph He and Xiaohong Wang, and California Dolphin Swim School, a California corporation (CDSS), P.O. Box 2835, Union City, CA 94587 agree as follows: 1. Consent to Rescission. The parties hereby consent and agree to rescind that certain lease dated December 6, 2005 between them for the lease of certain premises more specifically described as the swimming pool, men's and women's locker rooms, mechanical room, storage/office area and related parking located at 21111 Stevens Creek Boulevard in Cupertino, California. 2. Return of all Deposits. City will forthwith upon execution of this Agreement return all deposits, in the amount of One Hundred Thirty-four Thousand Five Hundred Dollars and no cents ($134,500) made by CDSS as described in the lease, together with accrued interest at a rate equal to the average interest earned by City with respect to its portfolio of investments. 3. Reimbursement of Costs Incurred by CDSS. City will forthwith upon execution of this agreement reimburse CDSS the sum of Eight Thousand Five Hundred Thirteen Dollars and Fifty-two Cents ($8,513.52) which costs were incurred by CDSS in preparing to occupy the leased premises. 4. Surrender of Riahts. The parties mutually agree to forego all other rights and benefits provided under the lease described above, as consideration for the rescission of that lease. 5. Mutual Release of all Claims. Except as provided in this agreement, each party releases the other from any and all rights, claims, and actions that each may have or may have against the other arising out of the above described lease. 6. Release of Unknown Claims. EACH PARTY ACKNOWLEDGES AND AGREES THAT THIS RESCISSION AGREEMENT AND MUTUAL RELEASE APPLIES TO ALL CLAIMS FOR INJURIES, DAMAGES, OR LOSSES TO EACH PARTY OR EACH PARTY'S PROPERTY REAL OR PERSONAL (WHETHER THOSE INJURIES, DAMAGES OR LOSSES ARE KNOWN OR UNKNOWN, FORSEEN OR UNFORSEEN, PATENT OR LATENT) THAT EACH MAY HAVE AGAINST THE OTHER, AND BOTH PARTIES WAIVE THE APPLICATION OF CIVIL CODE SECTION 1542 TO THIS RELEASE. 1 Date: ,,~. QG; Date: Date: Date: Date: Date: fo-7-o ~ ~ -7-0& ~)31 j:?erO 6 t/?I / 0 { ~ / j f / Z~O?J 6' I CITY OF CUPERTINO rJLJwK , David W. Knapp, c~nager ATTEST: AP~ ~s T. Kilian, citY~ CALIFORNIA DOLPHIN SWIM SCHOOL BY:~ JOSEPH HE, President and Chairperson of the Board of California Dolphin Swim School, a California corporation / / / ' I:'\(; Dv-o,?- 'i.'V 0--- \ XIAOHONG WANG; s an individu~, %r*- ' JOSEPH HE, as an individual 2