The core proposed settlement rejected by Paula Jones in her suit against President Clinton is a $700,000 payment for Jones from Clinton's insurers.

But it also would have stipulated that Jones did nothing wrong during the alleged incident between her and Clinton in 1991.

Jones' former lawyers told her they were quitting after they exhorted her unsuccessfully to take the settlement.

WHEREAS, the parties collectively have incurred in legal time and expenses a sum exceeding $2,000,000; and

WHEREAS, the parties realize that to further litigate this dispute, substantial additional legal fees and expenses will be incurred, which they wish to avoid, and agree that it is in their mutual interest to resolve this litigation by way of this settlement; and

WHEREAS, the parties agree that Paula Corbin Jones did not engage in any improper or sexual conduct on May 8, 1991, and that the allegations and the inferences about her published in January 1994 in the American Spectator are false and their adverse effects upon her character and reputation regrettable; and

WHEREAS, nothing in this Agreement shall be construed to be an admission of liability or wrongdoing by the parties:

IT IS AGREED AS FOLLOWS:

1. Upon the execution of this Agreement, Plaintiff, Paula Corbin Jones, agrees to dismiss her complaint against William Jefferson Clinton and Daniel Ferguson with prejudice;

2. The insurers for President Clinton will pay to Plaintiff and her counsel the sum of $700,000 in full satisfaction of all claims for damages, including but not limited to any physical and personal injury, civil rights violations, emotional distress, and any fees and expenses incurred in connection with this litigation or the facts and circumstances underlying it;

3. The Plaintiff, Paula Corbin Jones and Defendant Daniel Ferguson and Defendant William Jefferson Clinton, hereby release each other and their representatives in connection with any claims which have or could be made in connection with the litigation or the facts and circumstances underlying it;

4. It is understood and agreed that this is the entire and only agreement between the parties and that it will be filed in open Court;

5. It is understood and agreed that the parties have authorized their counsel to execute this Agreement on their behalf.