SETTLEMENT AGREEMENT AND MUTUAL RELEASE 

I. PARTIES: The parties to this SettLement Agreement ("Agreement") are Plaintiff 

FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for Downey Savings & Loan 

Association, F.A. ("FDIC") on the one hand, and Defendant Melan1e Dowling ("Borrower"). on 

the other hand. The FDIC and Borrower are sometimes herein collectively referred to as the 

j'P arties." 

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

2.1 Certain claims arose between the Parti~'l concerning a residential loan that 

was made by Downey to Borrower in or about December 13. 2005 in the principal amount of 

$416,000.00 and secured by a deed of trust on real property located at I HHH.HHJ HH_Jp)(4.),(b) 

Carmichael, CA 95608 (the "Loan"). The Loan defaulted resulting in a loss to Downey which (6) 

the FDIC seeks to recover upon (the "Claims"). 

2.2 TI1e Claims subsequently became the subject of a Complaint 

("Complaint) entitled FDIC v American Benefit Mortgage, Inc., et al, Case No. l 0-3032·JFW 

(RCx), filed by the FDIC in the United States District Court fur the Central District of California, 

Southern Division (the "Action"). 

2.3 Borrower was served with the Summons and Complaint in the Action. 

2.4 The Parties have agreed to resolve the Claims being alleged by the FDIC 

against Borrower pursuant io the terms stated in this Agreement. Accordingly. Borrower has not 

responded to the Complaint. 

2.5 By this Agreement the Parties intend to settle and dispose of, fully and 

completely, any and all claims, demands, causes of action, obligations, damages, and liabilities 

that arise out of or relate to the Action and the Claims aHeged therein by the FDIC against 

Borrower. 

3. NO ADMISSION RE MERITS OF CLAIMS: The Parties agree that nothing in 

this Agreement, and no performance under this Agreement, shall be construed as an admission 

by either Party of the validity or invalidity ofthe Claims alleged in the Action against Borrower; 

and, the Parties agree that this Agreement is entered inro for the purpose of convenience and to 

compromise the disputed Claims alleged in the Action. 

4. SETTLEMENT TERMS: The Parties agree to the following settlement temrs: 

4.1 Borrower agrees to cooperate with the FDIC in its pursuit of its Claims in 

the Action against the other named Defendants by: (a) cooperating with the FDIC's COlUlsel in 

the drafting of Borrower's declaration under penalty of petjury that will describe the events 

Borrower witnessed surrounding the Loan; and/or (h) Borrower giving a deposition in the 

Action; and/or (c) Borrower testifying at the trial of the Action. In the event Borrower is 

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SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE 
required to testifY at deposition or the trial ofthe Action, he/she agrees to do so without requiring 

service of a subpoena for his/her appearance and all travel expenses relating to hisier appearance 

shall be paid for by the FDIC (e.g., air fan:'l> hotel and meaJs at the rates and per diem set by 

federal employee guidelines then in effect). 

4.2 Concurrent with the execution of this Agreement, the FDIC shall file a 

dismissal with prejudice of Borrower from the Action. 

5. MUTUAL RELEASE: 

5.1 In consideratjon of the Settlement terms as set forth in Paragraph 4 above, 

and all other promises, covenants and consideration provided for herein, the Parties agree that, 

except as to such rights or claims as may be created by this Agreement, they hereby covenant not 

to sue each other again on the Claims and the Parties acknowledge full and complete satisfaction 

of, and hereby release, remise, and forever discharge each other, including their respective 

officers, directors, affiliated companies, agents, servants. representatives, spouse, heirs, 

successors or predecessors in interest, assignees, attorneys, employees and contractors of and 

from any and aU Claims, demands, countsJ obligations, agreements, damages, liabilities, losses, 

costs and expenses of any kind, in law or in equ.ity, whether known or unknown, that either Party 

now holds, or has ever held against the other, that arise out of or are in any way connected with, 

ihe Claims alleged in the Action. 

5.2. This Agreement shall be binding on the Parties and on their respective 

officers, rectors~ affiliated companies, agents, servants, representatives, spouse, heirs, 

successors or predecessors in interest, assignees, attorneys, employees and contractors and shall 

inure to the benefit of sa.ld Parties, and each ofthern. 

6. ATTORNEYS' FEES: In the event that any action is brought to enforce or 

intetpret this. Agreement, the prevailing party shall be entitled to an award of reasonable 

attorneys' fees in addition to any other reliefto which the prevailing party may be entitled. 

7. REPRESENTATIONS AND WARR.A..""--"TIES: The Parties represent; warrant, 

and agree as follows: 

7.1 Each of the Parties has received or had the opportunity to seek their own 

independent legal advice with respect to the advisability of executing this Agreement. The 

Parties acknowledge that they have executed this Agreement without frau ~ duresst or undue 

influence. The Parties affirm that they have read this Agreement and understand the contents 

hereof. 

7.2 No Party, nor any agent or attorney of any Party, has made any statement, 

representation, or promise to any other Party regarding any facts which the Party has then relied 

upon in entering into this Agreement, and the Parties here each affinn that they have not relied 

upon any statement, representation or promise by any other Party, or of any agent or attorney for 

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SETTLEM-ENT AGREEMENT AND MUTUAL GENERAL RELEASE 

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another Party, in executing this Agreement, or in making the settlement provided for herein, 

except as is expressly represented or promised il) this Agreement. 

7.3 None of the Parties have heretofore assigned, transferred, or granted, or 

purported to assign, transfer~ or grant, any of the Claims that are alleged in the Action. 

7 A Each Party agrees to execute any additional documents as reasonably 

convenient, necessary or desirable to carry out the provisions of this Agreement. 

8. MISCEI,LANEOUS: 

8. J This Agreement shall be deemed to have been executed and delivered 

within the State of California, and the rights and obligations of the Parties hereto shall be 

construed and enforced in accordance with, and governed by, the laws of the State of California. 

8.2 This Agreement constitutes a single, integrated written contract expressing 

the entire agreement of the Pruties. This Agreement may only be modified in a writing signed by 

all the Parties. This Agreement shall be interpreted in accordance with the plain meaning of its 

terms and not strictly for or against any of the Parties to this Agreement. 

8.3 The provisions of this Agreement are contractual and not mere recitals. 

The Agreement shall be considered severable, sueh that if any provision or part of the Agreement 

is ever held invalid under any Jaw or ruling, that provision or part of the Agreement shall remain 

in force and effect to the extent allowed by law, and all other provisions or parts shall remain in 

full force and effect. 

8.4 This Agreement may be executed in cow1terparts and shall be effective on 

the date first executed by any one of the Parties hereto if so executed in counterparts (the 

"effective date"). An authenticated copy of this Agreement can be used for any purpose for 

(b)( 6) ····························· W.4.i.<::l.l.l.h~~~~Il:~~--~~Y?.:~~~~: ·····················m····m· 

··································· ..................................... 

DATED: ~p • 2010 

(b)(6) ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••m.l 

(b)(6) 

DATED: _1_~.:.../_.?_v __ , 2010 

OSIT INSURANCE 

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