SETTLEMENT AGREEMENT

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SETTLEMENT AGREEMENT This Settlement Agreement ( Agreement ) is made this day of May 2008 by and between the TOWN OF PURCELLVILLE, VIRGINIA ( Town ) and the BOARD OF SUPERVISORS OF LOUDOUN COUNTY/LOUDOUN COUNTY, VIRGINIA ( County ), and the LOUDOUN COUNTY SCHOOL BOARD ( Board ). WHEREAS, the Town and the County have several cases pending before the Virginia Supreme Court, specifically, Record Nos: 071424, 071425, 071426, 071505, 071506; a Petition for Appeal to the Virginia Supreme Court, specifically, Appeal No:, and a case pending in the Circuit Court of Loudoun County, No: 46067; and WHEREAS, good faith discussions have been undertaken by the parties with a view toward the resolution of disputes between them on terms and conditions that are mutually agreeable, and WHEREAS, the parties have reached agreement on such terms and conditions and wish to memorialize them hereby, and do recognize that settlement of this litigation constitutes good and sufficient consideration for this Agreement, now, therefore, the parties agree as follows: 1. The Town shall agree to the construction of HS-3, a 1600 student high school on the Fields Farm property. 2. The County and the Board shall provide all water to be found on the Fields Farm property; land for water treatment facilities and/or possible water tower at no cost to the Town. The County and the Board shall make the existing treatment facilities available to the Town at no cost. The County and the Board shall pay all applicable availability fees for connection to Town utilities after the property is annexed into the Town. 3. The County shall confirm in writing that Town Zoning Administrator has joint and concurrent authority to make Commission Permit determinations on behalf of the Town in the Joint Land Management Area, formerly known as the UGA as set forth in the Purcellville Urban Growth Area Management Plan ( PUGAMP ). The County shall confirm in writing that once property is annexed into Town it is solely subject to Town ordinances.

4. The Town and the County shall process a Comprehensive Plan Amendment ( CPAM ) application after submission by the County to make the high school site and elementary school site eligible for annexation into the Town. 5. Following the adoption of CPAMs by the Town and the County, the County and the Board shall proceed with an annexation application and perform all the requirements of the annexation application process. The Town shall process an annexation application for the Fields Farm property 6. The County shall acquire, including through condemnation if necessary, the rightof-way for the improvements for the remaining segments of A Street (Southern Collector Road, SCR ). Following the execution of this Agreement, the County shall contact the owners of the property to be acquired for the SCR. Within 90 days after the execution of this Agreement, the Town shall prepare and submit to the County exhibits that depict alternative alignments for the SCR to facilitate the County s discussions with the owners of the property to be acquired. If agreement is not reached with all property owners for the acquisition of the right of way by December 2008, then the County shall initiate condemnation proceedings. 7. Although the remaining segments of the Southern Collector Road lie within the County, the Town shall provide funding of 70% for those segments. The County shall provide funding of $1,300,000 for the SCR design, engineering and construction. Such funds shall be remitted no later than December 2009. 8. The County shall reimburse the Town $250,000 for the costs of the installation of traffic lights at Main Street and Hatcher Avenue and Main Street and 23 rd Street. 9. The Town and the County shall each provide 50% of the funding for improvements to the Main Street and Maple Street intersection. The County s portion is $4,450,000 and it shall be remitted to the Town no later than December 31, 2008. 10. The Town shall process and act upon commission permit applications for the transportation improvements approved in the Special Exception for HS-3. The County and the Board shall construct all transportation improvements approved in the Special Exception.

11. The Town and the County shall amend PUGAMP to remove the proposed middle school location from the JLMA area. 12. The County and the Board agree that they shall not permit, approve or construct a high school in the JLMA area, other than HS-3, unless the PUGAMP is jointly amended by the Town and the County. 13. Following the completion of the Town and County joint review and/or revision of PUGAMP, but not later than two (2) years from the date of execution of this Agreement, the County shall initiate and fund 50% of the costs for study(ies) in partnership with the Town to identify road improvement projects needed in the Town and the JLMA. The County shall also commit to a joint determination with the Town of a prorated share for County contribution to fund identified improvements. 14. The Town and the County shall dismiss all litigation pending before the Supreme Court of Virginia. Following the initiation of the SCR right of way acquisition process as described in Paragraph 6 and the payment of the sums identified in Paragraphs 8 and 9 of this Agreement, the case pending before the Circuit Court of Loudoun County, No: 46067, shall be dismissed with prejudice. 15. The parties agree that the Loudoun County Circuit Court shall have jurisdiction over the interpretation and enforcement of this Agreement and the Agreement shall be filed as a Consent Decree in the Loudoun County Circuit Court. 16. The parties acknowledge that they have mutually negotiated the terms of this Agreement and agree to be bound by its terms thereby. IN WITNESS WHEREOF, the parties certify that they have authorized their respective representatives to execute this Agreement. BOARD OF SUPERVISORS OF LOUDOUN COUNTY, VIRGINIA TOWN OF PURCELLVILLE, VIRGINIA By: By:

Scott K. York, Chairman Robert. A. Lazaro, Jr. Loudoun County Board of Supervisors Mayor, Town of Purcellville LOUDOUN COUNTY SCHOOL BOARD By: Robert F. DuPree, Chairman Loudoun County School Board OF Subscribed, sworn to and acknowledged before me a, this day of May 2008 by Scott K. York, Chairman, Loudoun County Board of Supervisors. OF : Subscribed, sworn to and acknowledged before me a, this day of May 2008 by Robert A. Lazaro, Jr., Mayor, Town of Purcellville. OF :

Subscribed, sworn to and acknowledged before me a, this day of May 2008 by Robert F. DuPree., Chairman, Loudoun County School Board.