SETTLEMENT AGREEMENT 

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

and made effective as of the ______ day of August 2011 ("Effective Date"), by and 

between FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for 

WASHINGTON MUTUAL BANK ("FDIC-R"), ROD HAMMERSLEY/PRES1DIO 

("HAMMERSLEYIPRESIDIO’), PRESIDIO APPRAISAL SERVICES, INC. 

("PRESIDIO"). The FDIC-R and HAMMERS LEYIPRESIDIO may hereinafter be 

referred to individually as a "Party" or collectively as the ’Parties’. 

RECITALS 

1.1 In September of 2004, KASHIFI purchased the two adjoining parcels (4 

Sol Brae Way and 2 Sol Brae Way) for $1,250,000. On May 24, 2007, KASI-IJFI entered 

into a Purchase & Sale Agreement with 1-lassen Al Reyes for 4 Sol Brae Property. Al 

Reyes agreed to buy the 4 Sol Brae Property for $1.9 million. Al Reyes applied for and 

obtained two loans from Washington Mutual Bank totaling $1,709,810. The FDIC-R 

alleges that HAMMERSLEY/PRESIDJO prepared an appraisal of the 4 Sol Brae 

Property (the "Hammers Icy Appraisal") to be used by the lender in connection with the 

mortgage finance transaction. l-Iammersley alleges that he prepared an appraisal of 2 Sol 

Brae Way and 4 Sol Brae Way, which is reflected in the Hammersley Appraisal. 

1.2 On May 24, 2007, KASHIFI entered into a Purchase & Sale Agreement to 

sell the 2 Sol Brae Property to Mohamad Al-Akkad. Al-Akkad agreed to purchase this 

unimproved lot for $870,000. Royal Kirkland prepared an appraisal of the 2 Sot Brae 

Property. The appraisal was submitted to IndyMac Bank FSB as part of the mortgage 

finance transaction. In reliance on the appraisal and additional information, IndyMac 

Bank, FSB funded a loan to AI-Akkad in the amount of $696,000. 

1.3 No payments were made on the loans. The loans went into default and 

were foreclosed. 

1.4 On or about April 30, 2010, the FDIC-R filed a lawsuit entitled 

FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for INDYMAC 

BANK, F.S.B., and FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver 

for WASHINGTON MUTUAL BANK vs. ROYAL KIRKLAND, an individual; 

ACCURATE APPRAISAL SERVICES, type of entity unknown;; DAVID A. KASHIFI, 

an individual; ROD I-IAMMERSLEY, an individual; PRESIDIO APPRAISAL 

SERVICES, INC., a California corporation, and DOES I through 15, inclusive, Case No. 

10-03286-GAF (PJWx) (hereinafter "Action"). 

1.5 The Action alleged that HAMMERSLEY/PRESIDIO breached the 

contract and made negligent misrepresentations in the Hammersley Appraisal, and that 

KASHIFI intended to defraud the lenders in connection with the sale of the 2 Sot Brae 

and 4 Sol Brae Property. 

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SETTLEMENT AGREEMENT 

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1.6 HAMMERSLEY/PRESID1O dispute and deny the FDIC-R’s claims in the 

Action. 

1.7 The Parties desire and have agreed to settle all claims relating to the 

Action. 

2. AGREEMENT 

NOW, THEREFORE, in consideration of the mutual covenants and promises set 

forth herein, and for other good and valuable consideration, the receipt and sufficiency 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-R by HAMMERSLEYIPRESIDIO. Payment of 

One Hundred Twenty-Five Thousand Dollars and no/cents ($125,000.00) shall be paid on 

behalf of HAMMERSLEY/PRESIDIO to the FDIC-R. Payment shall be made payable 

to "Mortgage Recovery Law Group Trust Account." 

2.3 Within 5 business days of the FDIC-R’s counsel’s receipt of the settlement 

funds, the FDIC-R shall file a stipulation for dismissal of the Action with prejudice as to 

I-IAMMERSLEYI’PRESIDJO. 

2.4 Upon the FDIC-R’s receipt of the settlement payment, the FDIC-R agrees 

to remove its claim relating to the Hammersley Appraisal from the lawsuit entitled FDIC 

as Receiver for Washington Mutual Brink v. LSI, Case No. SACV! 1- 7O6JST(MLGx) (the 

"LSI Lawsuit"). The Parties agree the FDIC-R shall remove its claim in the LSI Lawsuit 

relating to the Hammers Icy Appraisal only and the FDIC-R is not prevented from 

pursuing claims relating to any other appraisals in the LSI Lawsuit or any other matter. 

2.5 The Parties shall bear their own costs and attorneys’ fees incurred in the 

Action. 

2.6 Each Party agrees that Section 664.6 of the Code of Civil Procedure of the 

State of California shall apply to this Settlement Agreement and requests that the court 

retain jurisdiction over the Parties to enforce this Settlement Agreement. 

3. RELEASE 

3.1 Known and Unknown Claims. The FDIC-R, HAMMERSLEY, 

PRESIDiO 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 

3662-088 9.111347.199726.191102.1 
SETTLEMENT AGREEMENT 

Page 3017 

of any type or nature (whether those injuries, damages, or losses are known or unknown, 

foreseen or unforeseen, patent or latent) which they may have against each other arising 

from or in conjunction with the Action relating to the 2 Sol Brae and 4 Sot Brae Property, 

and the Hammersley Appraisal. 

3.2 The Parties hereby expressly waive application 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 known 

by him or her must have materially affected his or her 

settlement with the debtor. 

3.3 The Parties understand and acknowledge that the significance and 

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

should eventually suffer additional damages arising from or in conjunction with the 

Action relating to the 2 So? Brae and 4 Sot Brae Property and the Hamrnersley Appraisal 

or any facts or circumstances related to the Action relating to the 2 Sot Brae and 4 Sot 

Brae Property and the J-Iammersley Appraisal, 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 of this release relating to the Action, but which that Party does not 

know exists, and which, if known, would materially affect that Party’s decision to execute 

this 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 rights, 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 

company’s, officers, directors, employees and/or agents of and 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, 

91348 uIl)(7.199726.191IO2 1 5662.085
SETTLEMENT AGREEMENT 

Page ofi 

to any damages, toss, or liability arising from or in conjunction with the Action relating 

to the 2 Sal Brae and 4 Sot Brae Property, and the Hammersley Appraisal. 

3.5 Notwithstanding any other provision of this Settlement Agreement, the 

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

Settlement Agreement had not been executed any claims against 

HAMMERSLEY/PRESIDIO arising out of any other transactions or appraisals (other 

than set forth in the Action) and arising out of any other existing or failed financial 

institutions other than WASHINGTON MUTUAL BANK, FA. 

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 if the 

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

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

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

Department of Justice or the United States Attorneys Office in any federal judicial 

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

restitution pursuant to the relevant provisions of the Victim and Witness Protection Act, 

18 U.S.C. § 3663, etseq., if appropriate. 

4. MISCELLANEOUS 

4.1 Conditions of Execution. Each Party 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 of any nature, and that this Settlement Agreement is made as a compromise 

of disputed claims. 

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

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

and County of Los Angeles, California, for any dispute arising out of this Settlement 

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

agree that any and all matters of dispute shall be adjudicated, governed and controlled 

under California law. 

4.5 Attorneys Fees 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 shall, in addition to any other available relief, 

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SETTLEMENT AGREEMENT 

Page I nfl 

be entitled to an award of reasonable attorneys fees and litigation expenses incurred in 

the prosecution or defense of the action, including any appeal. 

4.6 Severability. The Parties hereto agree that if any provision of this 

Settlement Agreement is declared by any court to be illegal or invalid, the validity of the 

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

invalid part, term or provision shall be deemed not to be part of this Settlement 

Agreement. 

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

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

successors, and assigns. 

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 of its terms and provisions, and fully understanding its and their costs 

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

Agreementand 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. This Settlement Agreement may be executed 

in one or more counterparts, all of which shall form a single agreement. A Party’s 

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

for all purposes as an original signature, provided, however, that the original signature 

shall be produced upon request. 

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

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

any provision of this Settlement Agreement, except by written instruments signed by the 

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

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

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

act than that specifically waived. 

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SETTLEMENT AGREEMENT 

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

convenience of reference and shall not control the meaning or interpretation of any of the 

provisions of this Settlement Agreement. 

4.13 Subsequent Agreements. The Parties agree that, upon the reasonable 

request of the other Party, they shall execute, acknowledge, and deliver any 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 of the 

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 Agreenientsets forth the entire agreement between and among the Parties and 

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

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

in a writing signed by the Parties or their authorized representatives. 

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: November 1’),2011 KEENEY WAITE & STEVENS 

APPROVED AS TO FORM 

(b)(6) 

Mary M. Best 

Todd F. Stevens 

Attorneys for Defendants, 

ROD HAMMERSLEY/PRESIDIO and 

PRESIDIO APPRAISAL SERVICES, INC. 

DATED: November 2, 2011 PRESIDIO APPRAISAL SERVICES, INC. 

(b)(6) 

By:_______________________________ 

ROD HAMMERSLEYIPRESIDJO 

LŠ 

Title 

913048 111347 199726 191102 1 5662-05 
SETTLEMENT AGREEMENT 

Page 7 of7 

DATED: November , 2011 ROD I-IAMMERSLEY 

I 

By: I ’ ROD HAMMELEY 

(b)(6) 

(b)(6) DATED: November __ , 2011 

APPROVED AS TO FORM 

VAN SSA 1. WIDENER 

Attorneys for J~fi tiffi . \J 

FEDERAL DEPOSIT INSURANCE CORPORATION 

as Receiver for WASHINGTON MUTUAL BANK 

DATED: November , 2011 FEDERAL DEPOSIT INSURANCE CORPORATION 

as Receiver for WASHINGTON MUTUAL BANK 

By: 

Signature 

(b)(6) 

çt\1 COUPJS. 

Type/Print Name and Title 

913049 111347 199726 191102.1 5662-098