(b)(2) 

· ~received· LJM) .._________/ - ~1£/o/JD I 

,SETTLEMENTAGREEM.Il!NT AND MlitlJAL':RELEASE 

'IIiiS SETtLEMENT AG:a£EMEN't AND MUtUAL ll.ELEASE 

'(''Settlemt<ntAgreemetit") js entered intO a11d made effective a$ :oi·the~ay of 

February, 2016 ('~Effeetive Date0 ), l:ly an9 between the FederitlDeposit inSi.mmce Coqx>~atioll ~l{eceiver ·oflndyMac Bank,.'FSB (''FDIC") ~9 SoutbpQrt B@lc 

{''Sotitf{Po:R'r.BANK''). The fDIC ~u4SOUTHP0Rt BANK may heteinaftefbe r~f~rre4 to i1,1dividu~lly as Iii "Party''<or co1ledively as the ''Parties}' 

:RE:CI'rALS 

1.1 SOUTHPORT BANK ~old.atiCllor C!eilvered tn()ttg~g¢lqans to litdyMac 

Blink; l'S13, P1ltii:Liat)tto v3:cious )Vptten tigreements covering the period frprti OctoberS, 

2004 t~ D.ecember 31 ~ 2008 .. A dispute·has arlsen between tb.e P.11ities with rc;:spect to . 

outsqtndittg demands·(o.r.r~purcb~e .filldlor i~c,lemruty. S,pecificaJ)y~ inayMac Bam;, FSB 

made dC:mi~nds to SOUTHPORT BANK for repurcb11s~ ~!lJpdn:pcmmifi~tic:>n ~as~d 

upon SOUTliPORT JlA.N~'S brt:~~h ()fibe represetita:tions· and wiuTanti!$. set 'f9nb: in th~ written ajieen:ierits. 

:1.2· 'Wi*o).lt a~nrittins liabjlitf,'the Partiesdesire· to·a.na have agreed to ~'~ttl~ 

all tepuichase.ap.d tndenuiification cl(\ims telatlng lQ themqrtg~ge.loans pri}Viously sold' 

·'Jiret:ilyhy.S(}l)J'JtPO~T:BANK:_t() lndyMac Bank;'FSllftomJ)ctQbe( S/2()04 :to 

December 31? 2008 {the. ·~LOANS") upc>n th¢ tt<rtns and (!()~QiQonli htr~¥ina~et Bet.forth. 

AGREEMENT 

'NOW~ THEREFORE, in CQn&idetatiqn·9Nte mutual cov~nan.~ and promise~ set 

(()#}1 her~jy, an4 fQrQ~her goo.~ and 'Yaluable cc;msideration~ the reed~ 8Jl(l su:fficiencr of' 

which ate hereby a:ckrtowl¢dged by lb:e PartieS; the Parties. ip.~nding to be legallyboWicl, 

1!-&ree:as follows: ­

1.3 :Reeit~ls.• ·The Recitals set forth above are i.rtcorpot.tted intotb.e~bc;>dy of . :1his SettiementAgreement as thol1gh fully set forth herein. · · 

1,4 Payment ol'theSettlementAgreement. SOUTRPOR.T)~ANKsh;\)lpay 

th~ w~l SUlJl p($2~0.()00 (hvo huQ..dt:~~- fifty th()USand dplla.rs) (the -~·settlem!=nt FundS;'). 

by no later th{Ul March 1,,.201o. .The payment shall be.nuid,e by wiretransfermade 

(b)(4) wvabte·to ··r:t;::~r~::~r~w·.arouj.[~;;~~~:~~!~;;r~s:~~e.nt:· 1 

(b)(4) 

·strrrU!MENTAGREEMi!NT.&'MoTiJAL ttELBASI; 

Page I ofS 

., ~ .
RELEASE 

l.S Unkilow.n Clai.ms. Each. Party. acknowledges and. agre~s that this 

Settl¢ine~tAgt~~rnel,lt lipp)lc;s to a)l c;:l!lims for injuries, .tfamages, or losses 9f~my cype C?r 

natutec (whetherthose"irijwies, dann1,ges,··(lt ~oss~s .are known or unli;I!.<;)WJ;l, fores,ec;:n or 

unfo,resee~, pat~nt •or.I~tent) w1lic~ each rilrtY may have agltinst the <~ther Party arising 

from the LOANS. Each Pmty hete\"!:y eX,pre~iy waives ~pp).i~;:ation ofCalifornia Civil 

Code §iS42and any other l!imill!rstatute or ruie. · 

1.6 ·Each Pi!I1Y certifies that itha~ r¢Qd i!.rid W!de.tstap4~ th¢ follov{ing 


provisions of(Jalif~mta Civil Cor!~.§1542, ~hic}l ~tates in pertinentpartas follows: 


~·A genetal rel¢ase· d()e~ ·not extend. t9 ·()l~ilri$ wp.ich the 

ctedi.tor doe$ not Jrnow ·or suspect to :exist m'his or her 

f11.vor. at the time .of ~:)(~cutin.g :th~ rele~ e,. Whi~h jf kn<>wn by.~. OCher J.llusf.llilve materially' .affected his Ot her ..s¢ttlem¢nt" wlth the debti;lr.''· · 

.1.7 ·a~ch PJUty underStands, aclaiowledges ~Pd agrees toot the si~ifiCilJ1'1<' 

attd cowequen~' ofits.w~y~n>fCqlifonti(!Civjl (Jod(!§1~42 is ~at even"ifeither Party 

shoul~ eve,n.tl,uillysuf.feradditional damages arising~ut ofthe LOANS, the clalm.s ann ¢~~~s, qhcti9P. ma~w~r~. o).'tpuld have be<:n. as~Jerted relating to the LOANS, orariy 

facts m: circw.nsumces telated :wther~p~rch;tse $l.fandiot )n,denm.itii;!B~io!l Qfiosses · 

associatedw!th th~:LOANS~ th~tt. Pruiy wlil.11ot be a~l~ to m!lk., Bli.Y claiin .(or those 

damages. li'lJJ1heqn¢r; ~acbParty a9knowledges and agrees that tbey consciopsly intend· 

these coilseqliences wm. e\ten applyto: cia.in)~ fqt &im.ages tha.t m.ay exis~ aS ofthe date .of 

tb'is rele!lse hutwhi~h ~hat!,artY does notldiow exist$; and :which, iflaw~ wC>!ll~ 

tilateriaily aff~t "th~trart:yis..decisi(m·tcl ¢xecp~e ,fbjs iel~~se, regardless:Qf whetliet that ·p~'s lack ofknowledge is ihe result 9fi@lll'8llce,;PY¢~ight, ~rrot, negligence; Or any 

otherca}ls~. 

l•S ,EacbPartY hetelWfully, fii!lilly, ·®dfdteWtt~l~~e~ddischarge"the 

oill-er Party, anq AAY 11nd ll.ll ofits respective past, ptesenti ,!lnd: tuttu'e affiliates, 

employ¢es, members, partners,jCiil)t ·venturers, indepeniientcontr!lct~rs1 . attorneys, 

"insurer:;,"il.westors•. successors, assigns, tepresen:tali~es•. officer~. direCtors. sbateholders, 

predecessors; succeS'sors·and assign5, and ~Y potporat:lol1,'Partp~s.hip or •imjte4liability 

.	comp~y which was pr is at anY tllne the, p~rent or wh~Uy owned subsidiary Qr"such . entity, a.nd iUlY',such Q~Ipdl1J.tion'sj ~~rf.tlershlpi~; Qr: ljijli~~ lj~b11ity compa,n,y's officers, 

directors, and/or employees; .oran,y corporation, partnership or Iin:lited liabiii~y company 

Which Wit$ Ot }S:Bn affiliate ofsutih entity by ~irgie pf: co!JUliqn ownership .IJi" Coidrol;•and 

;any.such co.tjlotatioi:t's; partnership's otlililited.liabillty compa.ny's? otliceJ;S, dh'ec4»is. 

and/or employees <»f ~d frQm afiyand all actions;· c:au8es U:faction, claim§, deJn~4s• 

.damages, :debts~ losses; tosts, expenses,_ attoriley f~s ot bt.he~ iiab'ilities :ofevery )Cind and 

SETILEM~NT AG~EMENT 4 MuTUAL RBLEASB · · ·· Page2 ots · 
.a.grt::ethafany ;mi:l allmatters oftiispute shall be -~aj(idi~llte(l; governe4 attd. controlled 

under .Calif'<m'iia taw. . 

l.lS Attorneys' Fees~ Shotiid·apy action be cqmrnenced to enforce, futerpte~ 

ot seekdatnase$;Jr).jll11ctiv~relie~ 9f spe.:;ifi_c Petfoimance forvi6l~tionofthis St:tt1eroent Agreefil~nt;the prevailJng party $hall, jfi additipn to :any oth,er available relief, be entitled 

tcfan aw~d ofteas<mable ~ttQmets (~~ fln!ilitig~;~.tjon expeilses incufted in the. 

prOSeCUtion or defC1l!IC ofthe actio~ including @y.I!:JJpea\. _. 

l~l6 $everl:iHHity. The·P~i_es hereto agree thadfany provi$iot1 o!this Settlem~ntAgreement is declared by any c6urttobe illegal (}rinvruicl, ~e·validity.ofthe 

temainiQ:g prui$; Jerm.s or ptoyisio11s !>hall not.be affected thereby, and $11ch illegal or 

invalidp.art', term or ptoVision shall be deemed 11o~ to~ part ofthi~ SettHmtent 

Agreement, · 

l.17 Binding Effec:t. This· Settlem~Jit Agreemel!t shill.lbe binding upon and 


inure to the bep:efit pftlw .Partie.s !ffid ,thejr respective heir&, personaltepresentatj,ves, 
 successors~ and assigns. · · ·· 


1~18 ll~vi~w ~nd'UnderstaDdJD,g. The Pattieslta'v~¢l.i~¢re{l into this ­ SettlementAgre¢ment v()1un4U'ity, .having f\tlly reaij and fully under$bJtid.\qg the me@.ing 

and effect of~lf ofits tel111S and provisi()DS, and ;fully i)rtq~~Q\ngi1$ ~ttd ~eiJ; COSts 

and risks..Each dfthe p~~s Ms cops4lted wltlt,legalCQl~nsel·conc¢ming thi!l Settlero~nt 

Agr~iJlellt_a~4 ~tiS- Cc:lp4'ucte4 such inquicy·as.they,deein Ii~c¢Ss~y-and advi$able prior to 

entering into-this :setUeiri¢.0.~ Agteem.e.nt. ''the :P1ltf.ies enter: into tliis·Settlemerit 

A&reen.tenfund.~bi.n4ing that .facts or other circumstances iJ:l!lY ·ex,ist wb.l~)l are pr~ently 

unknown or '!lhdisclos~d. (Jrwhich are diffe:te!lHt:om or other than those w:bi¢b tli~y 

helieve to b¢ the case, _and th¢ P~rtie~:voluntartly assume u1i ris~ a#e.nd~ttQ 5Y:Ch 

u~own.1 undisclosed, different, .Ptaoditional. facts·.or other circumstanceS; 

1.19 .,NtJm)?er•.Wben~v~r-~ppltcable, the ~i11gulatsh~lf in~Iudethe plural, and 

the plwat sliall.iri~~ud¢ the ~ingulat. . . 

1~2o · 'Cptiri.tJ!rpart$!Executlj;'J.i; Thjs Settl(lwentA~ement may be executed 

in. ~)fie or UJ.()re C:Q~nterpl!Ifs, all ofwhicb sbali foini. a s'ingle. agreement. b Party's 

signature ori thi$ $eUl¢mcnt.A.gree_i:i1_enfby fac~imileshall ·~valid and effective for all 

pW"po!!es. as an origitlal ~igrta~e, provided, however, that the origih\ll sigMhlfe sl!all be 

prodilced liP<;~n requ¢st. ... 

1·11 Waiver~ No tetm oroonaition Pfth'is $¢t1l¢'mentAgreemepisball bt: 

deemed to haVe heeri. waived. npt sb.~H Jb,~~e be IUl C~~toppel agaibsfthe enfqrc~J:ne~t of 

any provision·-ofthis-Settlemelit Agreement, ·except·hy -w#ttenJ.ristnunen~ signed-by the 

.Party cb_arge.d with the: wa~ver or estoppel. No written waiver :Shallb¢ deemed 11 

SE.'JT[E!&ffiNT AO~fiEI\.'iE!NT.&~UTUi\L RB!;.EASE 


Page4off 

continuing waiver uiiless·spediicany statedJherein, and theWil«:en ~vet shaU ope~te 

ol.11Y ~uno the sp~clf!~. term. or CQn~ition \Vaiyed, anp notforthe future orijs to any other 

!let than that ~pecifically waiVed. · 

l/l2 li~adings; tM h¢adiogs ofpatitgraphs here~.are intertded soliilyfor the 

convenience offeference and shall not control the me~irig pr joterpretation: l:)f @.Y ofthe 

ptovisjqn~ PCthis Settl.eme11t Agreement. 

1~23 Subsequent Agr~¢me~t$. The.P~i~ agtee .1hat, ppon tije rea,sonable 

teq\le$1 ()fthe ot~er Party, *PY shall ~xecu.te, ackriowledge,)trtd delivenmy add.itiohal 

instruments or dPclimerttS thatmaytea$onably be r~liD;e4 tq <:ll,ny <mtthe intenti~ns of 

ibis $e~l~Ql.ep:t 1\greernen:t, incl11di11g such instruments as may be requited bytheJaws of 

unyjurisdi~tion, now in effect or her¢iri~fteJ: ¢n!l~t~ct, tbati:ilay ilffeptthe righ~ oftl:le 

·~8.l'tifl8 ·l!S betwc¢n•tbeinSdlv,s or ptqets with respect to their tights and obJigations. 

created by this SettlementAgreement. ·· 

1:24 Entire.Agree~ent. The Partie·s herethfurthet *'gree iUid prota:il~;e that this $¢1:U~rtl~mtAgreem¢~t fiets forth tlieentitea,gre_~tt).ent betWeen and am~g the.Part1estm.d 

fully supersedes any and ~I pdor--nt~goti.atimi&~ ~greements or undersU.ndings made 

between oramong the Parties. This ·~ettl~me~tAgreenwnt -shaJI not be modified except 

in 1rwriting si(W.ed py the.Par(i~s or their a"~Jthorized representatives. 

lNWITN$~SWJlE~()F~~d int¢ndingto P¢ l~gallyboundheteby, the Parties 

-have executed this SettleinetttAgreel1lent as ofthe date $et forth in the· op¢riing paregrap~ 

ofthl$:S¢ttl~entA~eelileJ1t . . - . 

F:or: The FDIC as ltecelver Of 


. tfidyM~u: :Bank/FSB 


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

~y: L........--1__ 
lBy: I -~ . +

Name: l<','.c_~.ctvJ. $,..C~\\( N11me: (J':f#nt ~--~JJall:~.r 

Title: 

Pate; 

rme: ·P11e~!~~nt-

's.E111.$MENt MREEMENt k MUTUAt .~LeASE 

:PageS ofS