SETTLEMENT AGREEMENT 

THIS SETTLEMENT AGREEMENT ("Settlement Agreement") is entered into 

and made effective as ofthe 29 day of March 2012 ("Effective Date''), by and between 

FEDERAL DEPOSIT INSURANCE CORPORATION, as Receiver for INDYMAC 

BANK, F.S.B. ("FDIC-R"), SCOTT C. BROCK dba INTEGRITY APPRAISAL 

SERVICES ("BROCK"), and NATiONAL UNION FIRE INSURANCE COMPANY of 

PI1TSBURG PA, CHARTIS CLAIMS, INC. (CHARTIS). The FDIC-R, BROCK and 

CHARTIS may hereinafter be referred to individually as a "Party" or collectively as the 

"Parties". 

1. RECITALS 

l.l On or about July 6, 2011, the FDIC-R filed a lawsuit entitled FEDERAL 


DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR ll®YMAC BANK, 


F.S.B. v. SCOIT C. BROCK an Individual and dba INTEGRITY APPRAISAL 

SERVICES, in the United States District Court for the CentJ·aJ District of California Case 

No. SACVll-998-NS (ANx) (hereinafter "Action"). The FDIC-R sought damages from 

BROCK arising out of a mortgage loan IndyMac Bank, F.S.B. ("IndyMac") made to 

Silvl;!strc Flores ("Loan"). The Complaint included a claims for breach ofcontract and 

negligent misrepresentation. In its answer, BROCK denied he was liable to the FDIC-R 

for damages. 

1.2 The Parties desire and have agreed to settle all claims between the FDIC-R 

and BROCK relating the Loan. By entering into this Settlement Agreement, the parties 

are not admitting the allegations as set forth in the Complaint. 

2. AGREEMENT 

NOW, THEREFORE, in consideration ofthe mutual covenants and promises set 

forth herein, and for other good and valuable consideration, the receipt and sufficicocy of 

which are hereby acknowledged by the Parties, the Parties, intending to be legally bound, 

agree as follows: 

2.1 Recitals. The Recitals set forth above are incorporated into the body of 

this Settlement Agreement as though fully set forth herein. 

2.2 Payment to the FDIC. Payment of One Hundred Twenty-Five Thousand 

Dollars and no/cents ($125,000.00) (the "Settlement Payment") shall be paid on behalf of 

BROCK to the FDIC-R. The Settlement Payment shall be made via settlement check no 

later than May 25,2012. BROCK shall deliver the settlement check to the FD1C-R c/o 

Mortgage Recovery Law Group, LLP, 700 North Brand Blvd., Ste. 830, Glendale, CA 

91230. 

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1501137.1 
2.3 In the event BROCK defaults by failing to make a timely payment to the 

FDIC-R as set forth in paragraph 2.2 above ("Settlement Payment Due Date"), the FDICR, in its sole discretion., shall have the right to: 

a. Extend the time for payment, including interest accruing from the 

Settlement Payment Due Date through the date of payment at a rate calculakd in 

accordance with 26 U.S.C. § 6621 (b)(3); or 

b. Enforce this Settlement Agreement and, in such event, BROCK 

agrees to jurisdiction in Federal District Court in California to pay all ofthe 

FDIC-R's reasonable attorney's fees and costs expended in enforcing the terms of 

this Agreement; or 

c. Declare this Settlement Agreement null and void, move to vacate 

atty dismissal order, io which BROCK agrees to consent, and institute an action 

on the FDIC-R's claims, as to which BROCK waives any and all objections and 

defenses and covenant and agree not to assert any objections and defenses; and/or 

d. Seek any other relief available to it in law or equity. 

Any extension oftime for delivery ofthe Settlement Payment shall not prejudice 


Lhe FDIC-R's right to take other action or seek any relief during or after such period of 


extension, including the right to bring an action to enforce the Settlement Agreement, or 


declare the Settlement Agreement null and void. 


2.4 Within ten (l0) business days of the FDIC-R's receipt of the Settlement 

Payment as set forth in paragraph 2.2, the parties hereto shall execute and cause to be filed 

with the court ~ Stipulation and Request for Dismissal with Prejudice, and shall take such 

further steps as may be necessary for the court to enter an order dismissing the Action with 

prejudice. 

2.5 Each Party agrees that and requests that the court retain jurisdiction over 

the Parties to enforce thls Settlement. 

2.6 The Parties shall bear their own costs and attorneys' fees incurred in the 

Action. 

3. RELEASE 

3.1 Known and Unknown Claims. The FDIC-R, BROCK and CHARTIS 

acknowledge and agree that the release they give to each other upon executing this 

Settlement Agreement applies to all claims for injuries, damages, or losses ofany type or 

nature (whether those injuries, damages, or losses are known or unknown, foreseen or 

unforeseen, patent or latent) arising from or in conjunction with or related to the facts and 

circumstances giving rise to the Action. 

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1501137.1 
3.2 The Parties hereby expressly waive applic-ation of California Civil Code 

§1542 as it relates to the Action. The Parties certify that they have read and understood 

the following provisions of California Civil Code §1542 which states in pertinent part 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 knovm by him or her 

must have materially affected his or her settlement with the 

debtor. 

3.3 The Parties Wlderstand and acknowledge that the significance and 

consequence ofits waiver of California Civil Code§ 1542 is that even if either Party 

should eventu.ally suffer additional damages arising from or in conjunction with the 

Action or any facts or circmnstances related to the Action, that Party will not be able to 

make any claim against any other Party for those damages. Furthermore, each Party 

acknowledges that they consciously intend these consequences even as to claims for 

damages that may exist as of the date ofthis release relating to the Action, but which that 

Pruiy doc:~ not know exists, and which, ifknown, would materially affect that Party's 

decision to execute thls release, regardless of whether that Party's lack of knowledge is 

the result of ignorance, oversight, error, negligence, or any other cause. 

3.4 Except for the dgbts, duties, and obligations set forth in this Settlement 

Agreement, the Parties each hereby fully, finally, and forever release and discharge the 

other Parties, and any and all of its respective, employees, brokers, investors, members, 

partners, joint venturers, independent contractors, attorneys, accountants, insurers, agents, 

investors. representatives, officers, directors, and any corporation, partnership or limited 

liability company which was or is at any time the parent or wholly owned subsidiary of 

such entity, and any such corporation's, partnership's or limited liability company's 

officers, directors, employees and/or agents, or any corporation, partnership or limited 

liability company which was or is an affiliate of such entity by virtue of common 

ownership or control, and any such corporation's, partnership's or limited liability 

c<>mpany's, oftlcers, directors, employees nnd/or agents ofand from any and all actions, 

causes of action, claims, demands, damages, debts, losses, costs, expenses, attorney fees 

or other liabilities of every kind and nature whatsoever. whether legal or equitable and 

whether known or unknown, arising out of, resulting from, or relating to, in any manner, 

to any damages, loss, or liability arising from,. in conjunction with, or related to the 

Action or any facts or circumstances related to the Action. 

3.5 Notwithstanding any other provision ofthis Settlement Agreement, the 

FDIC-R does not release, and expre~siy preserves fully and to the same extent as if the 

Settlement Agreement had not been executed 11.11y claims against BROCK arising out of 

existing or failed financial institutions other than IndyMac. The FDIC-R represents that 

it retains the rights to pursue any claims arising out of or related to the Loan against other 

parties. 

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150!137.1 
3.6 Notwithstanding any other provision, by this Settlement Agreement, the 

FDIC-R does not release, and expressly preserves fully and to the same extent as ifthe 

Settlement Agreement had not been executed, any action taken by any other federal 

agency. In addition, this Settlement Agreement does not pllrpoJ1 to waive, or intend to 

waive, any claims which could be brought by the United States through either the 

Department ofJustice or the United States Attorney's Office in any fe.deral judicial 

district. In addition, the FDIC-R specifically reserves the right to seek court ordered 

restitution pursuant to the relevant provisiono; ofthe Victim and Witness Protection Act, 

1S U.S.C. § 3663, et seq., if appropriate, subject to an offset, in favor of BROCK only, 

for any Settlement Payment described in Paragraph 2.2 above. 

4. MISCELLANEOUS. 

4.1 Conditions of Execution. Each Pruty acknowledges and warrants that its 

execution of this Settlement Agreement is free and voluntary. 

4.2 No Admission. It is agreed that no Party hereto admits liability or 

wrongdoing ofany nature, and that this Settlement Agreement is made as a compromise 

ofdisputed claims. 

4.3 Fair Meaning. The Parties hereto further agree that the lunguage of all 

parts of this Settlement Agreement shall in all cases be construed as a whole, according to 

its fair meaning, and not strictly for or against any ofthe Parties 

4.4 Governing Law. The Parties agree to submit to the Courts of the City 

and County of Los Angeles, California, tor any dispute arising out of thls Settlement 

Agreement, or related thereto, and consent to the jurisdiction of said Courts and further 

agree that any and all matters ofdispute shall be adjudicated, govemed and controlled 

under California law. 

4.5 Attorneys Fe~ and Costs. Should any action be commenced to enforce, 

interpret. or seek damages, injunctive relief, or specific performance for violation of this 

Settlement Agreement, the prevailing party shaU, in addition to any other available relief, 

be entitled to an award of reasonable attorney's fees and litigation eKpenses incurred in 

the prosecution or defense ofthe action, including any appeal. 

4.6 Severability. The Parties hereto agree that ifany provision of this 

Settlement Agreement is declared by any court lobe illegal or invalid, t11e validity of the 

remaining pruts, terms or provisions shall not be affected thereby, and such illegal or 

invalid part, tenn or provision shall be deemed not to be part of this Sett1eme.nt 

Agreement. 

4.7 BiDding Effect. This Settlement Agreement shall be binding upon and 

inure to the benefit ofthe Parties and their respective heirs, personal representatives, 

successors, and assigns. 

SETTLEMENT AGREEMENT 

1501137.1 
4.8 Review and Understanding. The Parties have entered into this 

Settlement Agreement voluntarily, having fully read and fully understood the meaning 

and effect of all ofits tenns and provisions, and fully understanding its and their costs 

and risks. Each of the Parties has consulted with legal counsel concerning this Settlement 

Agreement and has conducted such inquiry as they deem necessary and advisable prior to 

entering into this Settlement Agreement. The Parties enter into this Settlement 

Agreement understanding that facts or other circumstances may exist which are presently 

unknown or undisclosed, or which are different from or other than those which they 

believe to be the case, and the Parties voluntarily assume all risks attendant to such 

unknown, undisclosed, different, or additional facts or other circumstances. 

4.9 Number. Whenever applicable, the singular shall include the plural. and 

the plural shall include the singular. 

4.10 Counterparts/Execution. lbis Settlement Agreement may be executed 

in one or more counterparts, all ofwhich shall form a single agreement. A Party's 

signature on this Settlement Agreement by facsimile or e-mail shall be valid and effective 

for all pmposes as an original signature, provided, however, that the original signatw-e 

shall be produced upon request. 

4.11 Waiver. No term or condition of this Sdtlement Agreement shall be 

deemed to have been waived, nor shall there be an estoppel against the enforcement of 

any provision ofthis Settlement Agreement, except by '"'l'itten instruments signed by the 

Party charged with the waiver or estoppel. No written waiver shaH be deemed a 

continuing waiver unless specifically stated therein, and the written waiver shall operate 

only as to the specific tetm or condition waived, and not for the future or as to any other 

act than that specifically waived. 

4.12 Headings. The headings of paragraphs herein are intended solely for the 

convenience of reference and shall not control the meaning or interpretation ofany ofthe 

provisions ofthis Settlement Agreement. 

4.13 Subsequent Agreements. The Parties agree that, upon th~ reasonable 

request of the other Party. they shall execute, acknowledge, and deliver llilY additional 

instruments or documents that may reasonably be required to carry out the intentions of 

this Settlement Agreement. including such instruments as may be required by the laws of 

any jurisdiction, now in effect or hereinafter enacted, that may affect the rights ofthe 

Parties as between themselves or others with respect to their rights and obligations 

created by this Settlement Agreement. 

4.14 Entire Agreement. The Parties hereto further agree and promise that this 

Settlement Agreement sets forth the entire agreement between and among the Pat1ies and 

fully supersedes any and all prior negotiations, agreements or understandings made 

between ot• among the Parties. This Settlement Agreement shall not be modified except 

in 11 writing ·signed by the Parties or their authorized representatives. 

SEmEMENT AGREEMENT Page 5 of7 

1501137.1 
__ 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties 

have executed this Settlement Agreement as of the date set forth in the opening paragraph 

of this Settlement Agreement. 

DATED: April_, 2012 

APPROVED AS TO FORM 

DATED::~~~ 

DATED: April_, 2012 

/?4Jtfl/-tt!L­ DATED;....Apl:il , 2912 .,., 

(b)(6) APPROVED AS TO FORM 

WILSON ELSER MOSKOWITZ EDELM'\N & 

DICKERLLP 

By: 

DavidS. Eisen 

Attorney for Defendant SCO"IT C. BROCK dba 

INTEGRITY APPRAISAL SERVICES 

SCOTI C. BROCK dba INTEGRITY APPRAISAL 

SERVICES 

(b)(6) 

By: J 1··· ~Sz~gn-a~rge ______________ r-----­

Type/Print Name and Tille 

NATIONAL ·uNION FIRE INSURANCE COMPANY 

OF PITTSBURG P A , CHARTIS CLAIMS, INC. 

By: 

SigruJJure 

=---::::----------=-=-=------------· Type/Print Name and Title 

MORTGAGE RECOVERY LAW GROUP LLP 

By: ~==::==:=::c==:===fti~----'--J-- Paul Levin l(b)(6) t '-------' 

SETTLEMENT AGREE\<IENT Page 6 of7 

!SOl 137.1 
DATED: May7,2012 

Attorneys for Plaintiff FEDERAL DEPOSIT 

INSURANCE CORPORATION, as Receiver for 

INDYMAC BANK, F.S.R 

FEDERAL DEPOSIT INSURANCE 

CORPORATION, as Receiver for INDYMAC 

BANK, F.S.B. 

(b)(6)

By:~'__~~-..l---In­ Signature 

'R\• c\AruJ. S.. G.\ {( 1 Cou lrJ'i'e-( 

Type/Print Name and Title 

SClTLEMENT AGREEMENT Page 7 of7 

1501137.1 
IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties 

have executed this Settlement Agreement as of the date set forth in the opening paragraph 

of this Settlement Agreement. 

DATED: -April :J/, 2012 	 WILSON ELSER MOSKOWITZ EDELMAN & 

-:/r,f-'V_ DICKERLLP 

APPROVED AS TO FORM 

l(b)(6) 

By: 

f9 r DaVil$Afs'en 

Attorney for Defendant SCOTT C. BROCK dba 

INTEGRITY APPRAISAL SERVICES 

DATED: April_, 2012 	 SCO'IT C. BROCK dba INTEGRITY APPRAISAL 

SERVICES 

By: 

Signature ----­

Type/Print Name and Title 

DATED: April_, 2012 	 NATIONAL UNION FIRE INSURANCE COMPANY 

OF PITTSBURG PA , CHARTIS CLAIMS, INC. 

By: 

Signature 

Type/Print Name and Title 

DATED~~~~~l__ MORTGAGE RECOVERY LAW GROUP LLP 

(b)(6) APPROVED AS TO FORM

j<b)(6) Paul Levin 

SETILEMENT AGREEMENT 	 Page 6 of7 

1501137.1