II. TERMS AND CONDITIONS

2.1 Fines. Respondents V.I.P. and Israel Lerner agree jointly and severally to a fine of $20,000. Within one year of the Commission issuing a decision adopting and approving this Settlement, these Respondents will pay the Commission as a fine the amount of $2,000. If Respondents remain in compliance with this Settlement, during the one year period of Probation, as defined below, the Commission will stay the remaining $18,000 fine. If Respondents do not comply with the Settlement, the remaining $18,000 will be due immediately. Payments must be in the form of a cashier check made payable to the order of the Commission and delivered to CPSD Transportation Enforcement Supervisor, Suong T. Le, 505 Van Ness Ave, San Francisco CA 94102.

2.2 Permit. Respondents may not advertise or otherwise hold themselves out to the public or engage in business as a household goods carrier until the Commission has issued the Respondents a household goods carrier permit. CPSD supports the Commission granting Respondent's application (MTR 189909) as part of approval of this settlement.

2.3 Restitution. Respondents agree to make Restitution payments totaling $11,845 to customers illegally charged by All State Moving, Prime Storage and their affiliated companies. These customers have filed declarations of overcharges and loss and damages with the Commission and are part of the record in this proceeding. The Restitution payments will be made in two installments, as specified below. The payments will be made by cashier checks payable to the individual shippers, and sent to the Commission. Commission staff will then forward the checks to the shippers with a cover letter of explanation.

2.3.1 The first installment of restitution payments will be due within 30 days of Commission adoption of this settlement agreement. The payments will consist of checks made out as following:

Harold Rawls: $4,838

Tina Masquelier: $300

Scott Arnold: $550

Yungandhar Kyasa: $200

2.3.2 The second installment of restitution payments will be due within 120 days of Commission adoption of this settlement agreement. The payments will consist of checks made out as following:

Jennie Gonzalez: $3,000

Yaren Oren-Pines: $1,383

Muriel Drakeford: $574

Carol McPeters: $1,000

2.3 Probation. Respondents agree to a one-year Probation. The Probation period shall begin on the date when the Commission orders adoption of this Settlement. During the Probation period, Respondents shall:

2.4.1 File quarterly written reports of consumer complaints received by Respondents. The first report is due on the 30^th calendar day after the date of the Commission order adopting this Settlement. Each subsequent report must be filed no later than 30 calendar days thereafter. Each report must be signed by the Respondents under penalty of perjury, and delivered to CPSD Transportation Enforcement Supervisor, Suong T. Le, 505 Van Ness Ave, San Francisco CA 94102.

2.4.2 Each report must contain or attach the following data:

2.4.2.1 A summary of all consumer complaints made against the Respondents or any of its employees for the preceding 30 days;

2.4.2.2 The subject of each complaint and the name, address, and telephone number of the complainant;

2.4.2.3 The disposition of the complaint by the Respondents;

2.4.2.4 A copy of all correspondence or other written communication between the complainant and he Respondents and/or any of its employees;

2.4.2.5 A copy of any court judgment rendered final against the Respondents and proof of payment thereof

2.4 Compliance. Respondents acknowledge all violations contained in Staff's testimony, which has been served on Respondents as proposed Exhibits in this proceeding. Respondents take full responsibility for past violations of laws, rules and regulations governing household goods carriers and agree to be in full compliance with these regulations, and all other applicable rules in the future.