SEITLEMENT AND RUEASE AGREEMENT 

This Settlement and Release Agreem~ni C'Agreement11) is made as of this_ day of July, 

2012, byj between, and among the following undersigned parties: 

The Plaintiff Federal Deposit Insurance Corporation, as .receiver of Washington Mutual 

Bank~ {"FOIC-Receiver), The Defendants, Julie Parzy and Mortgage Makers, Inc., (the 

"Settling Defendants"). Individually, the FDIC-Receiver and the Settling Defendants may be 

referred to herein as "Party'• and collectively as the "Parties"'). 

RECITALS 

WHEREAS: 

At all relevant times prior to September 2S, 2008, Washington Mutual Bank \ 1the Bank") 

was a depository institution organized and existing under the laws of the state ofNevada; 

On September 23, 2008, the Bank asserted claims against certain persons, including the 

Settling Defendants, for negligence, fraud, and breach of contract, among others. Those claims 

for damages are now pending in the Allen ~unty Circuit Court under Cause Nwnbet 02COl0809-PL-124, (•'Action"). 

On September 25, 2008, the Bank was closed by the Office of Thrift Supervision and 

pursuant to 12 U.S.C. § 1821(c)~ the FDIC was appointed receiver. In acc:otdance with 12 

U.S.C. § 1821(d), the FDIC-Receiver succeeded to all rights, titles, powers and privileges of the 

Bank, including those with respect to the Action. On February 2, 2010, the FDIC-Receiver was 

substituted as proper party for the Bank in the Action. 

The Settling Defendants has denied liability for the FDIC·Receiver1s claims. However, 

the undersigned parties deem it in their best interests to enter into this Agreement to avoid the 

uncertainty, trouble, and expense of further litigation. 

NOW, THEREFORE, io consideration of the promises) undertakings, payments, and 

releases siated hereio, the sufficiency of which consideration is hereby acknowledged, the 

undersigned parties agree, each with the other, as follows: 
SECTION 1: Payment to FDJC .. Reeeiver 

A. As an essential covenant and condition to this Agreement, the Settling 

Defendants, agrees to pay the FDIC-Receiver the sum of$5,000.00 (''the Settlement Funds"). 

B. Within 20 days after the execution of an original, or originals in counterpart, of 

this Agreement by each of the undersigned Parties to this Agreement. the Settlement Funds shall 

be delivered to counsel for the FDIC-Receiver by certified or cashier's check(s) drawn upon a 

depository institution acceptable to FDIC~ Receiver. 

SECfiON ll: StipuJation and Dismissal 

Upon execution of this Agreement by each of the undersigned Parties, and receipt of the 

Settlement Funds, the FDIC-Receiver shall dismiss the Action as to the Settling Defendmts. The 

undersigned parties agree to enter a stipulation providing that the dismissal set forth above shall 

be with prejudice, with each party to bear its own costs as these were originally .incurred 

SECTION Ill: Releases 

A. Release of Individual Settling Defendants by FDIC-Receiver. 

Effective upon receipt in full of the settlement funds and the dismissal described in 

SECTlON(S) I and II above, and except as provided in PARAGRAPH IILC., the FDICReceiver1 for itself and its successors and assigns, hereby releases and discharges the Settling 

Defendants and her heirs. executors, administrators, representatives, successors and assigns, 

from any and all claims, demands~ obligations, damages, a.ctions, and causes of action, direct or 

indirect, in law or in equity, belonging to the FDJC .. Reteiver, whether known or unknown, that 

arise from or relate to the allegations made in the Action, including without limitation the 

mortgage loans at issue in the Action. 

B. Release of FDIC-Receiver by the Settling Defendants. 

Effective simultaneously with the release granted in PARAGRAPH lll.A. above~ the 

Settling Defendants, on behaJ f of herself individually, and her heirs, executors, administrators, 

agents, representatives, successors and assigns, hereby release and discharge FDIC-Receiver, and 

its employees, officers, directors, representatives, ccessors and assigns, from any and atl 

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claims. demands, obligations, damages. actions, and causes of action, direct or indirect. in law or 

in equity. that arise from or relate to, to the allegations made in the Action, including without 

limitation the mortgage loans at issue in the Action. 

C. £xmess Reservations From Releases by FDIC-Receiver. 

1 , Notwithstanding any other provision, by this Agreement, the FDICReceiver does not release, and expressly preserves fully and to the same extent as if the 

Agreement had not been executed~ any claims or causes of action: 

a. against any person or entity not expressly released in this 

Agreement; and 

b. which are not expressly released in Paragraphs liLA above. 

2. Notwithstanding any other provision, nothing in this Agreement shall be 

construed or interpreted as limiting, waiving, releasing or compromising the jurisdiction and 

authority of the FDIC-Receiver in the e.xercise of its supervisory or regulatory authority or to 

diminish its ability to institute administrative enforcement proceedings seeking removal, 

prohibitiont or any other administrative enforcement action that may arise by operation of law, 

rule or regulation. 

3. Notwithstanding any other provision,lbis Agreement does not purport to 

waive, or intend to waive, any claims which could be brought by any other agency or 

instrumentality of the United States government including the Department of Justice or the 

United States Attorney's Office for the Northern District oflndiana or any other federal judicial 

district. In addition1 the FDIC·Receiver 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, et seq. , if appropriate. 

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SECTION V: Representations and Acknowledgments 

A. No Admission of Liability. The undersigned Parties each acknowledge and agree 

that the matters set forth in this Agreement constitute the settlement and compromise of dispuied 

claims, and that this agreement is not an admission or evidence of liability by any of them 

regarding any claim. 

B. Execution .in GoW'ite.rparts. This Agreement may be executed in counterparts by 

one or more of the parties named herein and all such counterparts when so executed shall 

together constitute the final Agreement, as if one document had been signed by all parties hereto; 

and each such counterpart, upon execution and delivery, shall be deemed a complete original~ 

binding the party or parties subscribed thereto upon the execution by all parties to this 

Agreement. 

C. Binding Effect. Each of the undersigned persons represents and warrants that 

they are a party hereto or are authorized to sign this Agreement on behalf of the respective party, 

and that they have the full power and authority to bind such party to each and every provision of 

this Agreement. This Agreement shall be binding upon and inure to the benefit of the 

undersigned parties and their respective heirs, executors. administrators, representatives, 

successors and assigns. 

D. Choice of Law. This Agreement shalJ be interpreted, construed and enforced 

according to applicable federal law, or in its absence, the laws of the State oflndiana 

E. Entire Agreement and .Amendments. This Agreement constitutes the entire 

agreement and understanding between and among the undersigned parties concerning the matters 

set forth herein. This Agreement may not be amended or modified except by another written 

instrument signed by the party or parties to be bound thereby, or by their respective authorized 

attomey(s) or other representative(s). 

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G. Reasonable Cooperation. 

1. The undersigned parties agree to cooperate in good faith to effectuate all 

the terms and conditions of this Agreement including doing or causing their agents and attorneys 

to do, whatever is reasonably necessary to effeWU~te the signing. delivery, execution, filing, 

recording, and entry~ of any documents necessary to conclude the Action and to otherwise 

perform the teans of this Agreement 

2. Further, the Settling Defendants agrees to cooperate fully with the FDICReceiver in connection with the Action against any remaining DefendantS. Any such 

cooperation that involves any out of pocket costs is subject to reasonable reimbursement by the 

FDIC-Receiver pursuant to its internal guidelines and policy for such reimbursement, 

H. Advicoc of Counsel. Each party acknowledges that it has consulted with and 

obtained the advice of counsel prior to executing this Agreement, and that this Agreement has 

been explained to that party by his or her counsel 

IN WITNESS WHEREOF) the parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representatives on the dates hereinafter subscribed. 

FEDERAL DEPOSIT INSURANCE CORPORATION as 

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A PRINT NAME:...~,;_· .!..Qo..::.::.:.....:r•:....;.tJ _______ f"\1 '("~~ ~- ~ 
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