SETTLEMENT AGREEMENT AND MUTUAL RELEASE

L PARTIES: The parties to this Setlement Agreement (‘Agreement”) are Plaintiff
FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for Downey Savings & Loan
Association, F.A. (*FDIC”} on the one hand, and Defendant MARY SAUNDERS (“Borrower”),
on the other hand. The FDIC and Borrower 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 a residential loan that
was made by Downey to Borrower in or about November 16, 2005 in the principal amount of

$432,000.00 and secured by a deed of trust on real property located at (

TRACY, CA 95376 (the “Loan”). The Loan defaulted resulting in a loss to Downey which the’
FDIC seeks to recover upon (the “Claims”.

2.2. The Claims subsequently became the subject of a Complaint
(“Complaint”) entitled FDIC y, Money Line America, et al, Case No. CA10-044532, filed by the
FDIC in the United States District Court for the Central District of California, Western Division
{the “Action”).

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

24 The Parties have agreed to resolve the Claims being alleged by the FDIC
against Borrower pursuant to 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 alleged 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 of the Claims alleged in the Action against Borrower;
and, the Parties agree that this Agreement is entered into 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 terms:

44 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 counsel in
the drafting of Borrower’s declaration under penalty of perjury that will describe the events
Borrower witnessed surrounding the Loan; and/or (b) Borrower giving a deposition in the

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SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE

N(4),(b)
)


Action; and/or (c) Borrower testifying at the trial of the Action, In the event Borrower is
required to testify at deposition or the trial of the Action, he/she agrees to do so without requiring
service of a subpoena for his/her appearance and all travel expenses relating to his/er appearance
shall be paid for by the FDIC (e.g., air fare, hotel and meals 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.

3. MUTUAL RELEASE:

5.1. In consideration of the Settlement terms as set forth in Paragraph 4 above,
and afl 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 all Claims, demands, counts, obligations, agreements, damages, liabilities, losses,
costs and expenses of any kind, in Jaw or in equity, 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,
the Claims alleged in the Action.

5.2. This Agreement shall be binding on the Parties and on their respective
officers, directors, affiliated companies, agents, servants, representatives, spouse, heirs,
successors or predecessors in interest, assignees, attorneys, employees and contractors and shal!
inure to the benefit of said Parties, and each of them.

6. ATTORNEYS’ FEES: In the event that 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 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.

7.2. 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 affirm that they have not relied
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SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE


(b)(6)

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

upon any statement, representation or promise by any other Party, or of any agent or attorney for
another Party, in executing this Agreement, or in making the settlement provided for herein,
except as is expressly represented or promised in 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.

7.4 Each Party agrees to execute any additional documents as 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 shali 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 Parties. 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, such that if any provision or part of the 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 provisions or parts shall remain in
full force and effect.

84 This Agreement may be executed in counterparts and shail 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
which the original may be used.

/ 2
DATED: Mood Lf. 2010 | -——_
B Name: MARY SAUNDERS
DATED: MoS. 2010 00

FEDERA] ..—POSIT-INSURANCE

CORPO! IN as Receiver for
Downey’Savings & Loan Association, F.A.
By: Yeun | wey

Its:_ Secfo,. ChreX

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