FULL AND FINAL GENERAL RELEASE, WAIVER, AND SETTLEMENT AGREEMENT This Full and Final General Release, Waiver, and Settlement Agreement ("Agreement") is made and entered into by and between Armin Garza ("Employee") and Agua Special Utility District. ("Agua SUD"). Binding Recitals l. 2. Employee was employed. by Agua SUD from on or about O1/I~/JI until d 711'1/J7 With out the advice or consent of Agua SUD SB 814 became law. This law forbids the continued employment of Employee. Despite Agua SUDs notice to State Legislators that the passage of SB 814 would affect the constitutional and contractual rights of multiple employees, the legislators saw fit to place Agua SUD and its employee in this conflict. 3. On June 19th, 2017 Employee by and through his attorney submitted a letter demanding compliance with the tenns of his negotiated contract for employment. 4. On July 5th 2017 Agua SUD passed a resolution to authorize it's executive director to resolve the employment issues which resulted from the passage of SB 814. Negotiation between the potential parties commenced. 5. Both parties understand that this is a sensitive issue which can have negative financial consequences for each party. As such Both parties agree to keep the negation and terms of the settlement confidential so as not to hinder the future negotiating ability of Agua SUD with other employees. Parties also understand that the personal rights Employee are also affected by this agreement and the future employability of this Employee could be hindered by the release of this information . 6. Both Parties agree that under the Supreme Court decision of Boeing Co. v, Paxton and related case law, and Sections 552.101, 552.102, 552.103, 552.104, 552.107, 552.110, and related sections of the Texas Government Code the contents of this settlement do not meet the definition of public information and/or are excepted from disclosure. 7. Employee and Agua SUD desire that they resolve all issues in dispute between them with out the cost of lengthy litigation. NOW, THEREFORE, inconsideration of the covenants and promises contained herein and the valuable consideration paid under this Agreement, the receipt adequacy, and sufficiency of which is hereby acknowledged, the parties knowingly and volWltarily agree as follows: Agreements 8. Settlement Amount. As consideration for this agreement, Agua SUD agrees to pay or have paid to Employee in full and final settlement of Employee's claims, the gross sum of TWO/ HUNDRED SIXTY EIGHT THOUSAND DOLLARS AND NO/I 00THS DOLLARS ($268,000.00), said sum will be delivered seven days after the Employee signs this agreement and does not revoke his signature. Employee understands that that the Settlement Amount payable to him is taxable income, and applicable taxes and withholding will be withheld as they would under normal paychecks. The Net proceed payable to Employee is T-W-0~ID~I> fWTFw.N THOUSAND EIVEITTTNDB FP TWENTY ON E DO LLARS Al~f) SBVHN'Pt' FIVE CEN=fS (SllS,S:21.7~ Employee is responsible for the payment of any legal fees or costs. ,..,. . Page I of4 9. Releases. In exchange for the sum payable and other obligations under this Agreement, the parties individually and on behalf of their family, heirs, administrators, executors and assigns, affiliated entities, insurers, and attorneys, hereby forever release, acquit, discharge, waive and hold harmless each other and their affiliated entities, predecessors, successors, subsidiaries, and past and present employees, officers, directors, partners, managing members, attorneys, assigns, and representatives, even if not expressly named herein (collectively "the Released Parties") of and from any and all liability, claims, causes of action, suits, damages, debts obligations, wages covenants, warranties , and demands, of any kind, nature or description whatsoever, whether at law or in equity, in contract or in tort (including or not limited to claims for wrongful termination, breach of contract, and promissory estoppel), arising under federal or state common law or statutory law (including but not limited to discrimination and retaliation under the Texas Labor Code, Title VII of the Civil Rights Act of 1964 and the federal Age Discrimination in Employment Act), known or unknown, Liquidated or unliquidated , direct or indirect, due or to become due, contingent or otherwise, that either party has or may have or may have had or could have had against the other party, including but not limited to all claims based upon, arising from, related to or connected with Employee's employment with or termination of employment from Agua SUD, all claims which Employee brought or could have brought in a Lawsuit, and the events, transactions and occurrences connected with any or all of the foregoing that existed, had arisen or could have existed or arisen on the effective date of this Agreement. 10. ADEA Rights. Employee acknowledged, represents, warrants and agrees that (a) he has been advised of his ADEA rights, (b) this Agreement also refers to rights under the ADEA (the federal Age Discrimination in Employment Act as amended by the Older Worker Protection Act); (c) he does not waive rights or claims under the ADEA that may arise after the date that this Agreement is executed; (d) he waives rights or claims only in exchange for consideration in addition to anything of value to which he is already entitled; € he was given at least 21 days to consider this Agreement before signing it; and (t) he was advised that for a period of seven(7) days following the execution of this agreement, he could revoke the Agreement, and the Agreement would not become effective or enforceable until the seven (7) day revocation period expired. Employee agrees that the seven day revocation period has expired and he has not revoked his signature as of the effective date of this Agreement. 11. No Admission of Liability. The parties deny all alleged liability and wrongdoing with respect to any issues between them or that were raised or could have been raised in a potential Lawsuit. The parties understand that this Agreement is made solely for the purpose of compromising disputed claims and avoiding the time and expense of litigation. It is expressly understood and agreed that nothing contained in this Agreement or the fact that the parties settled their dispute shall constitute or be treated as an admission of any wrongdoing or liability on the part of any party or that any party has established any liability, all of which are expressly denied by the parties. 12. Voluntary Settlement. The parties represent, warrant, and agree that they have executed this Agreement knowingly, voluntarily, and of their own free will and act. Employee represents, warrants and agrees that he had a fair opportunity to consult with legal counsel about settlement and this Agreement. The parties intend to be bound by this Agreement and their recitals, terms, conditions, and representations. This Agreement is binding upon the parties and shall inure to the benefit of the parties. 13. Other Representations. Employee represents, warrants and agrees that, except as expressly set forth herein, no representation or promises, whether expressed, implied or otherwise, of any kind, nature or description whatsoever have been made to him as an inducement to entering into this Agreement. Employee represents, warrants and agrees that he is the sole and complete owner of the claims that he has waived and released herein, and that he has not assigned, conveyed, transferred or encumbered in any manner whatsoever any of such claims . All prior Page2 of4 understandings and agreements between the parties hereto , if any, are merged into and with this agreement, which fully, completely and accurately states and expresses their entire wtderstanding and agreement with regard to the subject matter of the Agreement This Agreement shall not be construed against the drafter. 14. Severability. The representation, warranties, covenants, and obligations contained herein are severable and shall survive the execution and delivery of this Agreement If any provision of this Agreement or the Mediation Agreement shall be determined to be invalid, the remainder of the Agreements(s) shall be enforceable . The validity, interpretation, effect and enforceability of this Agreement shall be interpreted and governed by the laws of the State of Texas. 15. Effective Date. This Agreement is effective on the date it is executed by the Parties and may be executed in multiple counterparts or originals . Employee STATE OF TEXAS } } COUNTY OF HIDALGO } l] f-'1 \ BEFORE ME, the undersigned authority, on this the day of 201 7, personally appeared Employee ARMIN GARZA, known to me to be the person whos name is subscribed to the foregoing instrument and who acknowledged to me that he executed the same for the purposes and consideration there · ed. I s., J Lt.,.~ e , IWIEIIAGCIOAI.EZ MYCCWISSIONEXPIRES U,18,20111 Page3 of4 Agua SUD. By:~_,,.LC-4,l-----=--·-Its:_7_,e=:;IA' :."-''::..:; .......:.. 4.. .;........: A_,,.~ ~' -'~ -~,,.,__ STATE OF TEXAS } } COUNTY OF HIDALGO } BEFORE ME, the undersigned authority, on this the CJ day of , 2017, personally appear ed DS.rn y Cr, vi c i fl .::> , known to me to be the son who se name is subscribed to the forego in g instrument and who acknowl edged to me that he executed the same for the purposes and consideration therein expressed and in the capacities therein stated and with the authority of and as the act and deed ~ SUD Eman,.i ofgi: Inc. '3l d ~ Lt>,,,f i-i ~ ~ • J-....:__ ..> NOTARY PUBLIC FOR THE STATEOF TEXAS \)1'~ "''' /J~~~. ~~~~~ ri PAM ELAS. PEREZ ! f Notary Public, State of Texas '•,,;J.;, •. ·-~~~i My Commission Expires ,,,,t~.~,,,,, April O7, 201 8 Page4 of4