GLOBALSETTLEMENTAGREEMENTAND 

MUTUAL RELEASE 

1. 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"), Defendant appraiser RESHAM SINGH ("Singh"), an individual; 

Defendant loan officer SAM DAVID ("David"), an individual; and Defendant broker ZENY P. 

LAMARSH ("Lamarsh"), an individual. The FDIC-R, Singh, David and Lamarsh 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 five (5) residential 

loans that were made by Downey to borrowers Brisa Arenas ("Arenas"), Antonio De La Hoya 

("De La Hoya"), Britten Kimbell & Chris Wells ("Kimbell/Wells"), Yacou Lazar ("Lazar") and 

Rashel Saralan ("Saralan") Gointly, the "Loans"). 

2.2 The Loans were secured by trust deeds on real properties then owned by 

each borrower. Lamarsh Financial Inc. was the mortgage broker that submitted to Downey the 

five loan applications. Lamarsh is alleged to have been, at the time, the managing and qualifying 

broker through whose license Lamarsh Financial Inc. did business with Downey. David is 

alleged to have been the licensed Loan Officer working with Lamarsh Financial Inc. at the time, 

who is alleged to have submitted to Downey loan applications for Lazar and Saralan. Singh was 

the appraiser who prepared a report for the Saralan refinance loan. 

2.3 The Loans were approved and funded by Downey and subsequently 

defaulted. Following foreclosure sales, each of the properties securing the Loans reverted to 

Downey, resulting in an alleged loss to the thrift of over $1.4 million. 

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 trying to recover 

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

2.5 The Claims subsequently became the subject of a Complaint 

("Complaint") entitled FDIC-R v. Lamarsh Financial, Inc., etc., eta/., Case No. SACVl0-00872 

DOC (RNBx), filed by the FDIC-R in the United States District Court for the Central District of 

California, Southern Division ("Action"). 

2.6 Singh, David and Lamarsh have each filed Answers in response to the 

FDIC-R's Complaint. In the Action, Singh and David are represented by legal counsel and 

Page I of6 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
Lamarsh is appearing in pro se. 

2.7 At the Court's ordered mediation of the Action, the Parties conditionally 

agreed to a settlement of the FDIC-Ks Claims, as hereafter set forth. The only condition to the 

Parties' settlement was the FDIC-R obtaining formal approval to enter into this settlement, which 

approval has now been obtained by the FDIC-R. 

2.8 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 

against Singh, David and Lamarsh. 

2.9 The FDIC-R expressly reserves and retains its right to proceed to request 

entry of default judgment against any and all named defendants whom it served with process and 

who failed to timely appear in response thereto. 

2.10 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 States 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 Receiver of Downey Savings & Loan Association, F.A., and no other receivership 

now existing, previously existing or hereafter appointed. 

3. NO ADMISSION RE MERITS OF CI,AJMS: 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. 

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

4.1 Singh. Singh shall pay, by draft payable on first presentation, the sum of 

Forty-Five Thousand No/1 00 Dollars ($45,000.00) to the FDIC-R within thirty (30) days of the 

full execution of this Agreement. After said payment has been made and cleared, Singh shall be 

dismissed from the Action with prejudice. 

4.2 David. Concurrent with the execution of this Agreement, David shal1 

execute and provide to the FDIC-R a Stipulation for Entry of Judgment ("David Stipulation for 

Judgment") in the amount of $20,000.00, which shall be paid $5,000 on the 15111 day of the next 

month following the full execution of this Agreement and, thereafter $1,250 on the 15th day of 

the next twelve (12) months until the full amount of the David Stipulation for Judgment has been 

paid. The David Stipulation for Judgment shall be held by the FDIC-R and not filed with the 

Court unless or until a default in payment under its terms occurs. If a default in payment occurs 

that is not timely cured, then the FDIC-R may file the David Stipulation for Judgment with the 

Page 2 of6 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
Court and request entry of judgment against David, less all payments previously made thereon. 

Upon full payment of the David Stipulation for Judgment, David shall be dismissed from the 

Action with prejudice. 

4.3 Lamarsh. Concurrent with the execution of this Agreement, Lamarsh 

shall execute and provide to the FDIC-R a Stipulation for Entry of Judgment ("Lamarsh 

Stipulation for Judgment") in the amount of $100,000.00, which may be fully satisfied if 

Lamarsh pays the FDIC-R $5,000 within four (4) months of the date she executes the Lamarsh 

Stipulation for Judgment; or, if Lamarsh pays the FDIC-R $7,500 within six (6) months of the 

date she executes the Lamarsh Stipulation for Judgment. The Lamarsh Stipulation for Judgment 

shall be held by the FDIC-R and not filed with the court unless or until a default in payment 

under its terms occurs. If a default in payment occurs that is not timely cured, then the FDIC-R 

may file the Lamarsh Stipulation for Judgment with the Court and request entry of judgment 

against Lamarsh. Upon full payment of the Lamarsh Stipulation for Judgment, Lamarsh shall be 

dismissed from the Action with prejudice. 

4.4 Non-dischargeable Judgment. In the event a Judgment is entered against 

either David or Lamarsh pursuant to their separate Stipulations for Judgment, then such 

Judgment shall be non-dischargeable in any proceeding (vohmtary or involuntary) commenced 

under the U.S. Bankruptcy Code, pursuant to 11 U.S.C. § 523(a)(2)(A). 

4.5 No Administrative Grievances. In executing this Agreement, each of the 

Parties warrants that he, she or it will not initiate nor cause to be initiated any action or 

proceeding pertaining to or concerning the Appraisal licenses of Singh and/or any of his agents 

or employees, which arises out of or relates, in whole or in part, to the claims, demands, causes 

of action, choses in action or matters relating to or arising out of the Action, and/or Loans. 

5. MUTUAL RELEASES: 

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, servants, representatives, 

spouse, 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 alleged in the Action. 

Page3 of6 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
5.2. This Agreement shall be binding on the Parties and on their respective 

officers, directors, affiliated companies (i.e., National Funding Corp. dba National Funding 

Group), agents, servants, representatives, spouses, heirs, successors or predecessors in interest, 

assignees, attorneys, employees and contractors and shall inure to the benefit of the Parties, and 

each of them. 

6. . ATTORNEYS' 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 FDICMR 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 FDICMR 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 affinn that they have read this Agreement and understand the contents 

hereof. 

7.3 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 

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. 

7.4 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 the Action. 

7.5 Each Party agrees to execute any additional documents as reasonably 

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

including, without limitation, the separate Stipulations for Entry of Judgment described in 

paragraphs 4.2, 4.3 and 4.4 above. 

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

8.2 This Agreement constitutes a single, integrated written contract expressing 

Page 4 of6 

SETILEMENT AGREEMENT AND MUTUAL RELEASE 
(b)(6) 

I he entire agreement of the Pa1iies. This Agreement may only be modi lied in a writing signed by 

all the Parties. This Agreement shall be interpreted in accordance with the plain 111caning of its 

terms and no! stridly i(n- or against any of the Panics to this Agreement. 

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

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

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

in fon.:e and elfcct to the extent allowed by law, and all other provisions or pa11s shall remain in 

full force and effect. 

g,4 This Agreement lllCIY be executed in COlllltcrparts 11nd shnll be effective on 

the date first executed by Clny one of the Pa11ies hereto if so executed in counte'1J<1rls (the 

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

signature. An authenticated copy of this Agreement con b;;: used for any purpose for which the 

miginal may be used. 

... 

DATED: 

RESHAM SINGH, an individual 

DATED: 

SAM DAVID, an individual 

DATED:--·----

DATED: ___ . 

ZENY P. LAMARSH, an individual 

FEDERAL DEPOSIT INSURANCE 

CORPORATION, as Receiver for Downey Savings 

& Loan Assoc., F.A. 

By: ___ _ 

Title: 

Page~ of(, 

---------~--~~ ·------·--·"'·-·------------

SETTLEME!':T AGREEMENT AND MUTUAL RELEASE 
(b)(6) 

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 ofthe Agreement 

is ever held invalid under any law or ruling, that provision or part ofthe 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 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: ________ __ 

DATED: 

DATED: ____ _ 

DATED: _____ _ 

RESHAM SINGH, an individual 

I· ...... SAM DAVID, an individual 

ZENY P. LAMARSH, an individual 

FEDERAL DEPOSIT INSURANCE 

CORPORATION, as Receiver for Downey Savings 

& Loan Assoc., F.A. 

By:~----------------------- Nrune:. ________________________ __ 

Title: 

PageSof6 

SETILEMENT AGREEMENT AND MUTUAL RELEASE 
(b)(6) 

(b)(6) 

the emi~ ngreement of the Parties. This Agreement may 11t1ly l!e maclified in a writing signed by 

all the Parties. This Agrcem~l'lt shall he interpreted in I!Ccordancc wilh 1hc plain meaning of its 

tem1s nnd not Slrktl)l for or aeAinst an)' ohhc Parties to lhis AgNcn1!lnt. 

11.3 1"he provisions of tl\is Agreement are contraem:d and Mt mere recitals. 

Th!! 1\greement sh11.ll be trmsidert-d SC\'Ctllble, such that if Any provision or pllrt of the Agreement 

ill ever held invalid under any lsw or nlling, that J)t'Ovision or pn11 of the Ag.rocmenl shall remain 

ill fort:e nnd elfcet to the extent o.\lowed by law, nnd nil other provl:>ion~ Clr p11t1s sh~ll remain in 

full force Md e ffcct. · 

. 8.4 This Agreement mny be e.xecuw:d in counterparts and shall he effective nn 

the ~inlc first executed by any ooe of the Pllrties hereto l r ~o exectrtcd in counterparts (the 

•·cfi'cctive dat~n). 1\ny ~igMtun: obtair.ed by fac.~1mile or e-mnil shnll be as valid 11.~ an oriain."'l 

~iSMtl;re. An authcntkated ct;tpy of lhis Agrt"Cmcnl cnn be used for nny purpose for which the 

original may b~ used. 

DATED: ----- RESI·IAM' SINGH, an individu11l 

DATED~ 

SAM Dh VID, an individual 

DATF.D: J£1.") '} t 2-v.l!.._ FEDERAL DEPOSIT INSURANCE 

CORl'ORA T!ON, a., Receiver rcr Downey Savings 

& Lnan Assoc:F.A. 

__ J --~ Name. , ,., , ,,_ "T' ,s; ... _, ·\ r\ t 

Tille: ..:; ..... ,.~- •\t-1-~, .... ~.t 

I 

P.'ttt s ()rt. 

------. SUTTl.F.M~.NY~..MiiNT 1\1'10 MUTUAL RELtA:>F.-· .. 
(b)(6) 

(b)(6) 

APPROVED AS TO FORM: 

'------' 

ltomcys for Federal Deposit lnsumnce 

Corporation as Receiver for Downey 

Snvings & Loan Association, F.A. 

MANNING & MARDER 

KASS .Ett: D RAMIREZ LLP 

IN 

Attorneys for Resham Singh 

MEDLIN & HAHGRA VE 

By: ______ _ 

JOSHUA A. ROSENTHAL 

Attorneys for Sam David 

Pngeftof(> 
(b)(6) 

APPROVED AS TO FORM: 

HERSHORIN & HENRY LLP 

By: --J~E~A~N~C-.~W1L~C~O~X~-------

Attorneys for Federal Deposit Insurance 

Corporation as Receiver for Downey 

Savings & Loan Association, F.A. 

MANNING & MARDER 

KASS, ELLROD, RAMIREZ, LLP 

By: _____ __,.-----

PETBR RUSTIN 

By: -~=~--------J'- JOSHUA A. ROSENTHAL 

Attorneys for Sam David 

Page6 of6 

SBITLEMENT AGRE~ENT AND MUTUAL RELEASE