SETTLEMENT AGREEMENT AND 

MUTUAL RELEASE 

l. PARTIES: The parties to this Settlement Agreement ("Agreement") are Plaintiff 

FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for Downey Savings & Loan 

Association, F.A. ("FDIC-R"), and Defendant appraisers, MICHAEL RUDD ("Rudd") and 

CURTIS PAGE ("Page'') (jointly, "Defendants"). The FDIC-R and Defendants are sometimes 

herein collectively referred to as the "Parties." 

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

2.1 Certain claims arose between the Parties concerning an appraisal report 

and a review appraisal report that the Defendants, ~pectively, prepared relative to a refinance 

loan that Downey Savings & Loan Ass6ciation, F.A. ("Downey") approved and funded for · 

borrower Anthony Nonnan ("Norman") in September 2005 r•toan"). 

2.2 The Loan was secured by a trust deed on real property then owned by 

Nonnan and commonly 'known as 4349 W. Vasser Ave., Fresno, California ("Subject Property"). 

Rudd prepared an appraisal report on the Subject Property. Page prepared a review appraisal 

report on the Subject ,Property. 

2.3 The Loan was approved and funded by Downey and subsequently 

defaulted. Following a foreclosure sale, the Subject Property reverted to Downey, resulting in an 

alleged loss to the thrift of over $89,900.00. 

2.4 In November 2008, the FDIC~R was appointed the Receiver over all of 

Downey's assets and liabilities. Among the assets the FDIC-R is charged with tryhtg to recover 

upon is the loss relating to the Loan ("Claims"). 

2.5 The Claims subsequently became the subject of a Complaint 

("Complaint") entitled FDJC-R v. A.merifund Financial, etc., et al., Case No. SACVll-0840 

DOC (RNBx), filed by the FDIC-R ("Action") and now pending in the United States District 

Court for the Central District of California, Southern Division. 

2.6 Defendants filed Answers in response to the FDIC-R's Complaint and 

Defendants have been represented by legal counsel throughout the pendency of the Action, 

including this settlement. 

2. 7 By this Agreement the Parties hereto 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 alleged therein by the FDIC-R 

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SETTI.EMENT AGREEMENT AND MUTUAL RELEASE 
against the Defendants. 

2.8 The Federal Deposit Insurance Corporation in its separate corporate 

capacity_ as the insurer of deposits and bank regulator, and all other federal agencies of the 

United St!ites of America, are not parties to this Agreement and are not bound In any manner to 

its terms and conditions. The FDIC·R enters into this Agreement solely In its limited capacity as 

the appointed Re<:civer of Downey Savings & Loan Association, F .A., and no other receivership 

now existing, previously existing or hereafter appointed. 

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 any Party of the validity or invalidity of the Claims alleged in the Action; and, the Parties 

agree that this Agreement is entered into solely for the purpose of convenience and to 

compromise the disputed Claims the FDIC-R has alleged in the Action against the Defendants. 

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

4.1 Defendants, through their errors and omissions carrier, shall pay by draft 

payable upon first presentation, the sum ofTwenty-Five Thousand No/100 Dollars ($2S,OOO.OO) 

within sixty (60) days of the date on which this Agreement is fully executed by all parties. 

4.2 After said payment has been made and funds have cleared, the FDIC·R 

shall cause to be filed a stipulation for entry of an order dismissing the Defendants, and each of 

them, from the Action with prejudice. 

S. MUTUAL RELEASES AND WAIVER OF CIV. CODE§ 1541: 

5.1 In consideration 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 ever 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 insurers, officers; directors, affiliated companies, agents, representatives, spouses, 

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

from any and all the Claims, demands, counts, obligations, agreements, damages, liabilities, 

losses, costs and expenses of any kind, in law or in equity, whether known or unknown, that 

either Party now holds, or has ever held against the other, or may hold in the future, that arise out 

of or are in any way connected with, the Claims all~ged in the Action. 

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

officers, directors, affiliated companies, insurers, agents, representatives, spouses, heirs, 

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SETI'LEME.NT AGREEMENT AND MUTUAL RELEASE 
successors or predecessors in interest, assignees, attorneys. employees and contractors and shall 

inure to the benefit of the Parties, and each of them. 

5.3 The Parties specifically intend that the release contained in this Agreement 

shall bar all released claims, including those which are currently unknown to them. The Parties 

understand and accept the risk that they may later discover a claim encompassed by the Release 

in this Agreement which they did not know or suspect to exist, or which they could not have 

known or suspected to exist. The Parties hereby specifically waive the protection of Civil Code 

section 1542 which reads as follows: 

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. 

The foregoing waiver is expressly limited to the claims held by the Plaintiff, Federal Deposit 

Insurance Corporation as Receiver for Downey Savings and Loan Association, F.A., and no 

other receivership, nor to the Federal Deposit Insurance Corporation in its separate corporate 

capacity, as more particularly set for in paragraph 2.8 above. 

6. ATIORNEYS' FEES: In the event any action is brought to enforce or interpret 

this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys' fees in 

addition to any other relief to which the prevailing party may be entitled. 

7. REPRESENTATIONS AND WARRANTIES: The Parties represent, warrant. 

and agree as follows: 

7.1 The FDIC-R is the lawfully appointed Receiver for Downey and has 

succeeded to and now holds each of the Claims that are the subject of the Action and this 

Agreement. The FDIC-R has the authority to enter into this compromise and settlement of the 

Claims as the Receiver of Downey. 

7.2 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 fraud, duress, or undue 

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

hereof. 

7.3 No Party, nor ~my agent or attorney of any Party, has made any statement, 

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SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
(b)(6) 

representation, or promise to any other Party reprdins 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 my other Party, or of any agent or attorney ft~r 

another Party, in executing this A.grccment, or in making the settlement provided for herein. 

except as is expressly represented or promised in this Agreement. 

7.4 None of the Parties have heretofore assigned, transferred, or panted, or 

pwportcd to assign. traru~fer, or grant, any of~ aaims that are alleged in the Action. 

7.5 Each Party acrces to execute any add.itional documents aa reasonably 

convenient, necessary or desirable to "">'out the provisions of this Agreement 

8. MJSCELLJ\NEOUS: 

8.1 Thi:~ Agreement shall be: deemed to have: been executed and delivered 

within the State of California, and tht rigbl$ and obligations of the Parties hereto shall be 

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

8.2 Thi.:; Agreement coru~titutcs a single, integrated written contract expressins 

the entire agreement of the Parties. This Agreement may only be modified in a writing signccl by 

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

tcnil$ lllld not Gtrictly for or against any of the Parties to this Agreement. 

83 The provisions of this Asrcc:meot are conlractual and not mere rcdtals. 

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

Is ever held invalid under any law or ruling. that provision or put of lhe Agreement shall remain 

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

full force and effect. 

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

the date tiJSt exectttcd by any one of the Panies hereto if so executed in counierp111s (the 

"effective date"). Any sign.atUre obtaioed by facsimile or c-maU shall be as valid as llll original 

signature. An authenticated copy of dtis Agreement can be used for any purpose for which lhc 

original may be used. 

oA TEo: i:ii./ {i.f'l toi z_ • < MICHAEL RODD, an irubvtdual 

DATED:------

CURTIS PAGE, an lndividttal 

Pqe4or5 

-~· --- -··-sent~ A6iEEMENT ~oNifMiiiilA.LiELEA.sE 
(b)(6) 

representation. or promise to any other Party regarding any tilcls which the Party bas then relied 

upon In entering into this Agreement, and the Parties here each aff'um that they have not relied 

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

another Party. In executing this Agreement, or in making the settlement provided fur herein, 

except as is expressly represented or promised in this Agreement 

7.4 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 tho Action. 

7.5 Each Party agrees to execute any additional documents 118 reasonably 

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

8. MISCELLANEOUS: 

8.1 This Agreement shall be deemed to have been executed and delivered 

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

construed and enforced In aeoordance 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 Parties. This Agreement may only be modified In a writing signed by 

all the Partics. This Agreement shall be interpreted in accordance with the plain moaning of its 

tcnns and not strictly for or against any of the Partics to this Agreemcnt. 

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

The Agrecment shall be considered severable, such that If any provision or part of tho Agreement 

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

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

full force and effect 

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

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

"effective date"). Any signature obtained by facsimile or e-mail shall be as valid as an original 

signature. An authenticated copy of this Agreement can be used for any purpose for which the 

original may be used. 

DATED: _____ _ 

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SETTLEMENT AGREEMENT AND MUTUAL RBLBASB 
(b)(6) 

(b)(6) 

APPROVED AS TO FORM 

C. WILCOX 

eys for Federal Deposit Insurance 

rporation as Receiver for Downey 

Savings &. Loan Association. F .A. 

GAGUONE, DOLAN & KAPLAN 

sJ . ' ROBERT T. DOL\\N 

LlNDSAY MCMENAMfN 

Attorneys for Defendant,. 

Michael Rudd · 

KEENEY W AlTE & STfiYENS, APC 

By. ____ ~~--------~--~-

TODD F. STEVENS 

BRIAN L FRARY 

Attorneys for Defendant, 

CUrtis Page 

PagcSof.S 

S£'l'TLEMENT AGREEMENT AND M'UlUAL RELEASE 

(b )(6) 
(b)(6) 

,DATED: ____ _ FEDERALDEPOSITmSURANCE 

CORPORATION, as Receiver for Downey Savings 

& Loan Assoc., F .A. 

By: ____________ _ 

APPROVED AS TO FORM: 

HERSHORIN & HENRY LLP 

By: _____ __, ___ _ 

JEAN C. WILCOX 

Attorneys for Federal Deposit Insurance 

Corporation as Receiver for Downey 

Savings & Loan Association, F.A. 

GAGLIONE, DOLAN & KAPLAN 

By.~· ~R~O~B~E=RT==T~.D~O~L~A~N~-----­

LINDSAY MCMENAMIN 

Attorneys for Defendant, 

Michael Rudd 

JENEY WAI1E & STEVENS, APC 

TODD F. STEVENS 

BRIAN L. FRARY 

Attorneys for Defendant, 

Curtis Page 

Nrume:. ______________________ ___ 

Title:----'----------

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SETTLEMENT AGREEMENT AND MUTUAL RELEASE