Exhibit 10.58

AGREEMENT OF SETTLEMENT AND RELEASE

1. PARTIES. The parties to this Agreement of Settlement and Release
(“Agreement”) are (1) AH INVESTORS, LLC., a California limited liability
corporation (“AH Investors”); (2) PASSCO SAVE, LLC, a Delaware limited liability
company (“Passco”) 1; (3) UNIFIED WESTERN GROCERS, INC., a California
corporation (“Unified”); and (4) LOMO, INC., a California corporation (“Lomo”).
These parties are sometimes collectively referred to as “the Parties.” There are
no intended beneficiaries of this Agreement other than as specifically stated
herein.

2. RECITALS. This Agreement is made with reference to the following facts:

2.1. Passco is the owner of the retail shopping center commonly known as Norwood
Shopping Center located in Sacramento at 4201-4215 Norwood Avenue, Sacramento,
California 95838 (the “Shopping Center”). Passco’s predecessor-in-interest, as
landlord, and AH Investors’ predecessor-in-interest, Unified, as tenant, entered
into a written lease dated April 27, 1992, as subsequently amended and assigned
by various writings between 1992 and 2004 (the “Lease”), for an approximately
50,000 square foot space in the Shopping Center commonly known as 4211 Norwood
Avenue (the “Premises”). The Premises were ultimately sublet by AH Investors to
Lomo pursuant to a sublease (the “Sublease”). The Lease, and consequently, the
Sublease, was terminated by Passco as of August 31, 2006.

 

1

“Passco” as defined in this Agreement of Settlement and Release includes the
following persons or entities: Passco Save, LLC, a Delaware limited liability
company, Passco Rite, LLC, a Delaware limited liability company, Jesse Street,
LLC, a Delaware limited liability company, CC Properties, L.P., Douglas Pilcher,
a single man, Judy A. Spurlock, a married woman as her sole and separate
property, Jung Shou Chen and Amy Chen, Trustees of The Chen Family Trust
Agreement dated May 3,1989, Mary Ellen Morrow, Trustee of the Mary Ellen Morrow
Living Trust dated 9/23/91, R.U. Partners, a general partnership, Raymond L.
Helms, as Trustee under that certain Declaration of trust executed April 22,
2003, Terence G. O’Brien, a married man as his sole and separate property,
Walter L. Varco and Sandra C. Varco, Trustees of the Walter L. Varco Family
Trust dated 3/16/99, the Webb B. Morrow, Jr., Trustee of the Webb B. Morrow, Jr.
Living Trust U/A/D 12/07/93, collectively as tenants in common.

 

Settlement Agreement
and Release   1 of 24  

--------------------------------------------------------------------------------

2.2. In February, 2006, AH Investors and Unified allegedly defaulted in the
payments of rent due under the Lease. After gaining possession in a related
unlawful detainer action, Sacramento Superior Court Case No. 06AS 02899, Passco
filed an action for breach of lease against AH Investors and Unified in the Los
Angeles Superior Court, Case Number BC355058, entitled Passco Save, LLC., v. AH
Investors, LLC., et al. That action was later transferred to Sacramento County
Superior Court and assigned Case No. 07AS00528 and consolidated with a related
case filed by AH Investors in the Sacramento Superior Court, Case No. 06AS03116,
entitled AH Investors, LLC. v. Passco Save, LLC., et al. (collectively, “the
Lawsuit”).

2.3. In the Lawsuit, Passco alleged that, in 2006, its tenant, Unified, and
Unified’s assignee, AH Investors, breached the Lease by defaulting in the
payments of rent. In turn, AH Investors alleged that Passco breached the Lease
and the covenant of quiet enjoyment by failing to keep the Premises free of
criminal activity. All parties denied the material allegations made against
them.

2.4. Passco and Lomo have entered into an Agreement of Sale and Purchase and
Joint Escrow Instructions dated             , 2007 (the “Purchase and Sale
Agreement”), whereby Lomo will purchase the Shopping Center, inclusive of the
Premises, from Passco and upon closing of such sale of the Shopping Center
pursuant to the terms of the Purchase and Sale Agreement (the “Sale”), the
Lawsuit is to be dismissed by all parties as provided in this Agreement.

2.5. It is the intention of the Parties to settle and dispose of, fully and
completely, any and all claims, potential claims, complaints, demands, and
causes of action, reflected in the Lawsuit as well as any and all other
disputes, known or unknown, which may have arisen prior to the effective date of
this Agreement as more particularly set forth in this Agreement, except for
those claims expressly preserved by Section 4.1 of this Agreement.

NOW, THEREFORE, in consideration of the promises and conditions set forth
herein, the Parties agree as follows:

 

Settlement Agreement
and Release   2 of 24  

--------------------------------------------------------------------------------

3. DISMISSALS OF LAWSUIT.

3.1. Within three (3) business days following the Closing Date under the
Purchase and Sale Agreement as “Closing Date” is defined in Sections 1.2 and 4.2
of the Purchase and Sale Agreement, AH Investors and Passco shall dismiss the
Lawsuit with prejudice as to all Parties,, each Party bearing its own attorneys’
fees, experts’ fees, and costs. AH Investors and Passco shall promptly provide
each Party with a conformed copy of the dismissal showing the date entered by
the Court. Within the same three (3) business day period, Passco shall release
any and all judgment liens it previously recorded against Lomo and AH Investors.
To accomplish this, Passco shall provide Lomo and AH Investors with an
Acknowledgement of Satisfaction of Judgment in Sacramento Superior Court Case
No, 06AS02889. Passco shall deliver executed Acknowledgements of Satisfaction of
Judgment in Sacramento Superior Court Case No. 06AS02889 to Escrow in accordance
with the Supplemental Escrow Instructions, a copy of which is attached hereto as
Exhibit “1.” Upon closing of the Sale of the Shopping Center pursuant to the
terms of the Purchase and Sale Agreement, the Acknowledgements of Satisfaction
of Judgment shall be delivered to counsel for Lomo and AH Investors who shall
file the Acknowledgements of Satisfaction of Judgment with the Court and provide
all parties to Sacramento Superior Court Case No. 06AS02889 with conformed
copies showing the date of filing with the Court.

3.2. In order to effect the dismissal of the Lawsuit, AH Investors, Unified (as
to its Cross-Complaint against AH Investors), and Passco shall deliver executed
Requests for Dismissals in accordance with this paragraph to Jill Raffee of
Gordon & Rees, counsel for Passco, concurrent with their execution of this
Agreement. The Requests for Dismissal shall be delivered to Escrow in accordance
with the Supplemental Escrow Instructions, a copy of which is attached hereto as
Exhibit “1.” Upon closing of the Sale of the Shopping Center pursuant to the
terms of the Purchase and Sale Agreement, the Requests for Dismissal shall be
delivered to Jill Raffee who shall immediately file the Requests for Dismissal
with the Court and provide all parties hereto with conformed copies showing the
date of filing with the Court.

 

Settlement Agreement
and Release   3 of 24  

--------------------------------------------------------------------------------

3.3. The parties further agree to a stay on discovery and all litigation
activities in the Lawsuit pending the Closing Date. In addition, Passco agrees
to continue the judgment debtor examination in Sacramento Superior Court Case
Number 06AS02899 currently set for September 12, 2007 until after the Closing
Date. In the event the Closing Date does not occur by December 28, 2007, the
parties will agree to a mutually acceptable date for the continued judgment
debtor’s examination in Sacramento Superior Court Case Number 06AS02899 and all
discovery and other litigation activities in the Lawsuit may resume.

3.4. In the event the Closing Date does not occur by December 28, 2007, this
Agreement and the releases and covenants contained herein shall be null and void
and of no force and effect, and neither AH Investors, Unified, nor Passco shall
have any obligation to dismiss the Lawsuit. The Parties agree to cooperate in
obtaining an extension of the current trial date for the Lawsuit to a date not
earlier than March 10, 2008, so that all litigation activities and discovery can
be put on hold until January 2, 2008 in the event the Lawsuit has not been
dismissed pursuant to the terms of the Agreement.

4. RELEASES AND COVENANTS. In consideration of the releases and obligations
stated herein, and for other good and valuable consideration, the receipt of
which is acknowledged by each Party, the Parties promise, agree, and release as
follows:

4.1. Except as to such rights or claims as may be created by this Agreement,
each Party and those acting on each Party’s behalf (including stockholders,
members, officers, directors, employees, agents, representatives, successors,
and assigns) hereby fully release, remise and discharge each other Party
(including stockholders, members, officers, directors, employees, agents,
representatives, successors, and assigns) from all of the following
(collectively, “Claims”): any and all claims, charges, complaints, demands,
actions, causes of action, suits, affirmative defenses, rights, debts, sums of
money, costs, accounts, reckonings,

 

Settlement Agreement
and Release   4 of 24  

--------------------------------------------------------------------------------

covenants, omissions, damages, liabilities, and expenses (including attorneys’
fees and costs) of every kind and nature, known or unknown, foreseeable or
unforeseeable, which have arisen or existed at any time up through the Closing
Date (i) which were asserted in the Lawsuit, or (ii) by reason of any matter,
cause or thing whatsoever, in connection with, relating to or arising under, the
Lease, the Sublease, the Premises or the landlord-tenant relationship between
the Parties.

4.2. This release includes attorney’s fees and costs incurred through the
Closing Date and any other attorney’s fees and costs that have been or will be
incurred in connection with the Lawsuit. Notwithstanding anything in this
paragraph to the contrary, the foregoing release of claims shall not release any
Party from any responsibility imposed on that Party by the Lease or Sublease
with respect to claims made by third parties accruing or arising prior to the
Closing Date.

4.3. This instrument may be pled as a full and complete defense in and to any
action brought in violation hereof. This instrument shall be deemed to be a
general and complete release (except as it relates to any exclusions set forth
herein), and shall apply to any and all Claims (except claims relating to any
exclusions set forth herein), whether or not now known or suspected to exist.

4.4. The Parties waive, in connection with this Agreement, the benefit of the
provisions of Section 1542 of the Civil Code of the State of California, which
reads:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.”

5. REPRESENTATIONS AND WARRANTIES. Each Party to this Agreement represents,
warrants, and agrees as to itself as follows:

5.1. Each Party has received independent legal advice from its attorneys with
respect to the advisability of making the settlement provided for herein, the
import of California Civil Code Section 1542, and the advisability of executing
this Agreement.

 

Settlement Agreement
and Release   5 of 24  

--------------------------------------------------------------------------------

5.2. No Party (nor officer, agent, employee, representative, or attorney of or
for any Party) has made any statement or representation to any other Party
regarding any fact relied upon in entering into this Agreement, except as
expressly stated in this Agreement. No Party relies upon any statement,
representation or promise of any other Party (or officer, agent, employee,
representative, or attorney of or for any Party) in executing this Agreement or
in making the settlement provided for herein, except as expressly stated in this
Agreement.

5.3. Each Party to this Agreement has made such investigation of the facts
pertaining to this settlement and this Agreement and all of the matters
pertaining thereto as it deems necessary.

5.4. Each Party or responsible manager or officer thereof has read this
Agreement and understands the contents hereof. Each of the managers or officers
executing this Agreement on behalf of their respective corporation or business
entity is empowered to do so and thereby binds their respective corporation or
business entity.

5.5. Each Party has not heretofore assigned, transferred, or granted, or
purported to assign, transfer, or grant, any of the claims, potential claims,
demands, and causes of action disposed of by this Agreement.

5.6. Each term of this Agreement is contractual and not merely a recital.

5.7. Each Party is aware that it may hereafter discover claims or facts in
addition to or different from those it now knows or believes to be true with
respect to the matters related herein. Nevertheless, it is the intention of the
Parties to fully, finally, and forever settle and release the matters related
hereto. In furtherance of such intention, the releases given herein shall be and
remain in effect as full and complete mutual releases of all such matters,
notwithstanding the discovery or existence of any additional or different claims
or facts relative thereto.

 

Settlement Agreement
and Release   6 of 24  

--------------------------------------------------------------------------------

5.8. The Parties shall execute all such further and additional documents as
shall be reasonable, convenient, necessary, or desirable to carry out the
provisions of this Agreement. To the extent that Escrow Holder requires
supplemental instructions in order to effectuate the intent of the parties to
this Agreement, all parties shall cooperate in executing any such additional
documents or instructions.

6. SETTLEMENT. This Agreement effects the settlement of claims which are denied
and contested, and nothing contained herein shall be construed as an admission
by any Party hereto of any liability of any kind to any other Party. Each Party
denies any liability in connection with any claims and intends merely to avoid
litigation and to buy peace.

7. MISCELLANEOUS.

7.1. This Agreement shall be deemed to have been executed and delivered within
the State of California, and the rights and obligations of the Parties hereunder
shall be construed and enforced in accordance with, and governed by, the laws of
the State of California.

7.2. This Agreement is the entire Agreement between the Parties with respect to
the subject matter hereof and supersedes all prior and contemporaneous oral or
written agreements and discussions. This Agreement may be amended only by an
agreement in writing, executed by all Parties hereto.

7.3. This Agreement is binding upon and shall inure to the benefit of the
Parties hereto, their respective agents, attorneys, employees, representatives,
officers, directors, divisions, subsidiaries, affiliates, parent companies,
members, tenants, assigns, heirs, spouses, children, predecessors, dealers,
franchisees, successors in interest, and shareholders.

7.4. Each Party has cooperated in the drafting and preparation of this
Agreement. Hence, in any construction to be made of this Agreement, the same
shall not be construed against any party.

 

Settlement Agreement
and Release   7 of 24  

--------------------------------------------------------------------------------

7.5. This Agreement may be executed in counterparts and/or by facsimile, and
when each Party has signed and delivered at least one such counterpart, each
counterpart shall be deemed an original, and, when taken together with other
signed counterparts, shall constitute one Agreement, which shall be binding upon
and effective as to all Parties.

This Agreement is entered into as of September 4, 2007.

 

Passco Rite, LLC, a Delaware limited liability company By:   Passco Norwood
Center, LLC, a Delaware limited liability company, its sole member     By:  
Passco Real Estate Enterprises, Inc., a California corporation, its manager    
    By:  

/s/ William H. Winn

          William H. Winn, Vice President

 

Settlement Agreement
and Release   8 of 24  

--------------------------------------------------------------------------------

Passco Real Estate Enterprises, Inc., a California corporation By:  

/s/ William H. Winn

  William H. Winn, Vice President

 

Settlement Agreement
and Release   9 of 24  

--------------------------------------------------------------------------------

Passco Save, LLC, a Delaware limited liability company By:   Passco Norwood
Center, LLC, a Delaware limited liability company, its sole member   By:  
Passco Real Estate Enterprises, Inc., a California corporation, its manager    
By:  

/s/ William H. Winn

      William H. Winn, Vice President

 

Settlement Agreement
and Release   10 of 24  

--------------------------------------------------------------------------------

Jesse Street, LLC, a Delaware limited liability company By:   Passco Real Estate
Enterprises, Inc., a California corporation, its sole member   By:  

/s/ William H. Winn

    William H. Winn, Vice President

 

Settlement Agreement
and Release   11 of 24  

--------------------------------------------------------------------------------

Star Diamond Properties, L.P., a California limited partnership By:   Star
Diamond Management, LLC, a California limited liability company, its General
Partner   By:  

/s/ Webb B. Morrow III

    Webb B. Morrow III, Sole Member and Sole Manager

 

Settlement Agreement
and Release   12 of 24  

--------------------------------------------------------------------------------

/s/ Mary Ellen Morrow, Trustee

Mary Ellen Morrow, Trustee of the Mary Ellen Morrow Living Trust, dated
September 23, 1991; as amended and restated, who acquired title as May Ellen
Morrow, Trustee of the Mary Ellen Morrow Living Trust, Dated September 23, 1992

 

Settlement Agreement
and Release   13 of 24  

--------------------------------------------------------------------------------

/s/ Webb B. Morrow Jr., Trustee

Webb B. Morrow Jr., Trustee of The Webb B. Morrow, Jr. Living Trust dated
December 7, 1993

 

Settlement Agreement
and Release   14 of 24  

--------------------------------------------------------------------------------

/s/ Walter L. Varco, Trustee

Walter L. Varco, Trustee of the Amended and Restated Walter L. Varco Family
Trust, dated March 16, 1999

/s/ Sandra C. Varco, Trustee

Sandra C. Varco, Trustee of the Amended and Restated Walter L. Varco Family
Trust, dated March 16, 1999

 

Settlement Agreement
and Release   15 of 24  

--------------------------------------------------------------------------------

R.U. Partners, a general partnership By:  

/s/ Robert H. Waterman

  Robert H. Waterman, General Partner By:  

/s/ Ute Waterman

  Ute Waterman, General Partner

 

Settlement Agreement
and Release   16 of 24  

--------------------------------------------------------------------------------

/s/ Timothy J. Helms

Timothy J. Helms, Successor Trustee of the Raymond L. Helms Trust dated
April 22, 2003

 

Settlement Agreement
and Release   17 of 24  

--------------------------------------------------------------------------------

/s/ Judy A. Pilcher

Judy A. Pilcher, an unmarried woman, who acquired title as Judy A. Spurlock, a
married woman as her sole and separate property

 

Settlement Agreement
and Release   18 of 24  

--------------------------------------------------------------------------------

/s/ Terence G. O’Brien

Terence G. O’Brien, a married man as his sole and separate property

 

Settlement Agreement
and Release   19 of 24  

--------------------------------------------------------------------------------

/s/ Douglas Pilcher

Douglas Pilcher, a single man

 

Settlement Agreement
and Release   20 of 24  

--------------------------------------------------------------------------------

/s/ Jung Shou Chen, Trustee of The Chen Family Trust
Agreement dated May 3, 1989

Jung Shou Chen, Trustee of The Chen Family Trust Agreement dated May 3, 1989

/s/ Amy Chen, Trustee of The Chen Family Trust
dated May 3, 1989

Amy Chen, Trustee of The Chen Family Trust Agreement dated May 3, 1989

 

Settlement Agreement
and Release   21 of 24  

--------------------------------------------------------------------------------

    AH INVESTORS, LLC Dated: 11-27-07  

  /s/ Donald F. Gaube

  By  

Donald F. Gaube

  Its  

Managing Member

 

Settlement Agreement
and Release   22 of 24  

--------------------------------------------------------------------------------

    UNIFIED WESTERN GROCERS, INC. Dated: 9-28-07  

/s/ GARY C. HAMMETT

  By   GARY C. HAMMETT   Its   VICE PRESIDENT

 

Settlement Agreement
and Release   23 of 24  

--------------------------------------------------------------------------------

    LOMO, INC. Dated:                       

  /s/ Sean Loloee

  By  

Sean Loloee

  Its  

CEO

 

Settlement Agreement
and Release   24 of 24