Page 1 

) til.:-d ;1 :.::on:~)jg}Ht {sub."<l'l]•J;.~:1tiy amt:tldL'J-l Def~:n.:iauts .f;;':l'lcrdty nsscr!lng c:m~s 

of action tbr b:-~.:.::.:11 uf neg!ig;-:nt -~ni:rro;;;:_~~r;J;:..;:math'Jn, f:-<:u(:, broach of f!dcdary .Juty. a.nJ 

unjust cnriduncnt ("'t,'omj)ln.m:r'') 

nnd Conte:nca sne¥:lilg relief 

Cross-Cornpl:.ifH'~}. maHer was 

Superior (\-:crt 

>.lo. 3 7 ~2007~000!L 

Cctmly of San Ding:: (11w "Actkm"l 

the 

c ln the Action, Down::y asserted cla:ms ~'H({;i;:sr f.H:Ji';wi:Jms. alkgfnw. ;~;-nn1:,; . .. - ..• -

m:ug,:,thut i)efCndants had subrt1ittcd to Downey Savir:ns a m.;,;lgagc loan package on bcb.t!r 

of the which included an report for t'mperty that ::zmtained 

mlsrc!Jr2:s-~:·l;,;,tltms anoltlf inaccumdt>,.; the co-ndition7 ll::1t'J:rc:s,and value of the Subject 

Property and ~1. !oan appiication th;~;: CKHH.:tl:1Cd the !3orwwer':; iru.> nm:: 

xad ;.;mploy::nc!1t 

i),)\\'llCY S0.vh:.gs. corct;;:nde_d i_;:-, 6;:.• :haL_ as a re~;uic nr I Sav_i;:_!?:"~ 

reliance ttpv:11hos:c misre:preseniaih-,~::oo <ill_d/or inacc;mtcics~ it Si.!S!.nind d«!'":J,-:~:"'"-·-

Defcmiants denie:d ,, . G!legauons 

?:lrlV<cmiber 21, 2(l~t8, FDIC as Receiver of DO\-"'fF:y.Savirrgs became 

~m;:-<J0~:~xn~i_r;,):\tcrest ro iff:, t~la!r:1~ in this matter. 
10 

Page 2 

iennmate the dispuro cx.istin~ 

known or unknowTJ duirns have 

~0'1\-' 1li E.i~EFORE good nnJ 'v<:'ihtubl~ C",•nsidlxatiou, ;;_:dudi_r,f,; th~ ,~,,-,n:;.!l c:"ve:1;u~e:. 

and comli!in.m; h<-1\:in, the Scttlins Pz.:tiz:s agree as lollcw•;: 

<;,(:_:_d1 collectively Jclm:t 

to "\"iarshuck j LLP, 

A.tfrccm::sl1. The Scttlceh.'nt Paymc:1t sh~~n be dc-liv;:;x;d oven:1igb: r:1J;! > 

l'v1arsl:ack lbys, LL?. ! f' Tr0:hu;;;•,.1 :R_~-,ad. StU;;.,._~_ 130. :1.\tnia ~f262t:. 

$60,000. 

(:tlli':l'-" "':.() [ee .,_i~-Hv,~r;;·J 

hl Ch~Ek:s- Gorki Ch::-:n 

:t 

re.cd;llnl any of the scHlemem 

ThoQsand Jars und no!l 00 

•\ ·~'I"' >··<:>-,···h.;-.111. jh•~'l1l'l1'") , "'-'-''' ''' \ '·"''~''·' ••,1 G ' . 

Do !tars noll 00 

d;;~te of tllis 

A. Kading. 

suo.:eswrs ln fil'{jSCnt and former cmpL\rf"-'i:-~'-- insurers, scJvr:nK ~tg\:nt:;, 

independent contractors. din;ct0rfl, corporations, from and 

agai:ta: :t]l b:"'n actions, pmt:ced1ng~, J.>z:tJSt:s action, -n;r n.'lk:t: demands, righ1h, t:. 1krc·ns, 

damag"-'"-· :u"3C'i, co;;ts, (induding und C;_Jsts), obJigatiOJ!A, 

!inb ti tics <J~·Ki {.,t!ter ciaims of cv-eq r::ocn.r~' arising r:r rdatcd to the transaction, z;r 

"::~les of trm·~~t-: .. ::io:l:s, m1der ~ym.g t__h,::: Action (t:-oH~tfv-ely, th~~ ·'(:'l::lh::::"' ·'" 

3. t QJAlL'JJ\g::lic<st_fk·:~h.:-':':':2\hJD:, l lpo:: :.:.;cci,_-ing the Ebr:•:,imi Pa\ rr:e.rrt, 

EbrahJmi' s J\fOOf "'''""'''" filed ,~,u~ f1:g'•ril :o the rc..:-eivcnhip •:"';.1<!11: ,_, r noh--1J<±y ii',p f~nJ i .OllH 

to r,;r 

or tlu: FDJC. 

autu;nlfctir:ail; h.: deemed wilhdrawn. t:bmbmi shall no t\:tt;-·,cr dgh> 

Cluitna th.:;t h;: muy have as against the ik;\Vr.cy Savlllus receiv-crs}>i;:-, t'~;.at;;oEach of the 

:~H right:-. and hen cUts cvnft'tred on tb:;n; by Civil 

and any _:;;;-~~{;ibr c::l.it:lme:JJ nf: ;;}r o\ht.'r s<.1ch righ1s: affor:l,.;d -by, {[~ S~l~te 

Sratc" ~r f'IT">:y other sratc v.:rrito;y of the t: Sf;:;,;ti;'7f< J 54-2 ut' the C:dil\>rnb -(_'ivii ('ode 

U:iM!'J'iTAGH E\EMENT 
Page 3 

states: 

"A general rcleas:: does not exrend ;o claims trhich the creditor doev no! know 

or ,\uspect to exis! in his or her Javor a! the time of cxecutin)!. tlw wMth (f 

known him or her mwt have mat.:ria!iy afl'ccrcd his or her s<:tti<:mem 11~ith the 

debtor " 

Settling Parties acknowledges that the effect and import of California Ctvll Codr: S 

!()fC!!Oiny \Vaivcr and relinquishment of th{Jse rights, are understood by them and 

voluntarily. or the Settling Parties acknowledges that discover facts 

dHTcrcnt tbm or ln addition to thos,;; they now know or believe to tnu;, that said shall 

be given ftlll fim::e and ctlCct according to each and all or its express terms and co;!dilions, 

notwilhstanding such diJTercnt or additionai facts, The discovery of such different facts shall not in 

any alter or affect the rd<:asc contained herein. 

" Forthwith upun receipt of the payments m 

sections 1 and 2 above, PlalntHT shall file a for dismissal with prejudice the Complain:. 

and provide all other a conf\mncd copy afk"T entry or dismissal is made by lhe Court 

and Ehrahjmi shaH file a request for dismissal wi1h prejudice of the Cross-complaint, and provide 

aH other parties \Vith a c-onformed copy ailer entry z;f dismisstll is made th.; CourL 

6. Cpon execution of this A,,,e,ement of the 

Settling: Parties shall bear his or its own attorneys' fees and c~..1sts in the Action. 

:.Jdtht:r the existence ofthis Agreement nor !he conduci 

shall conslitutc t)r be construed as an admission nf liability or UJiy \-VTZlilgdoing 

\Vhatsocver on the pm1 or the Parties. Settling Partks to keep :he tem;s ibis settlement 

confidential and shaH not distlosc the tenus to anyone ~..)thcr than their aHomeys. tax professionals 

or a'i compelled by law. Additionally. the Settling Parties and their legal totm:sel agree to not 

initlate any inquiry or complaint to any licensing agency or protbssional trade t1rganization, 

including but not limitl'd to. Calift;mia Oflkc of Rcai Estate Appraisers. regarding the appraisal 

at issue the Action. unless required to Jo so by law. 

K In tht: :,::;_tsc of;_my uncertainty or ambiguity regarding any part orthls 

Agreement, the language shall be construed in accordar)cc with ruther than being 

interpret<;;;J against the party who caused uncertainty to exist 

tf. Excep1 as expressly in this Agreement, nothing in this 

Agreement, whtthcr express or implied, is intended to confer third~ party beneficiary stauts or to 

otherv.-isc .;onlCr rights or remedies on person or entity (collcctivdy ·'Third Party"'), o1hcr 

than the Parties. Nor shall any provision hereof any Third Pfrrty any right 

subrogation, indemnity. contribution, or action over and against any party to A:gr<'crnc:rt. 

i <J. IJ:t(prmcd Con_~!"(_nJ. Each Party acknowledges that it hils selecrcd. or been afforded 

1he opportunity to an attorney of its choice to review this and all matters_ 

SETTl!'v1Er\T AC>REEv1ENT 

Page 3 of6 
Page 4 

Party that such has received suH!cient information, ell her through such Party's 

own legal cmmsd or other sources of such party's own selection, so as to be able to an 

intellige1m and infimncd judgment to enter into this Agreement. Each party further states each 

has read this in it:;; entirety prior tv executing this Agreement, and that t'ach has executed 

lhis Agn:emcnt voluntarily, with competence and to contract and with knowledge nfth.: 

tenus. legal ctfbct of this Ag:rc<:mcm. executing Ag:rccmcrrc i1 is 

undcrstomi by each party thu1 suhstmtial rights may compromi"ed and/or waived in their entirety. 

ll. If action. motion or proceeding at taw or equity is instlmtcd 

to cnf1xcc or intt'!T>rc1 the terms of this Agreement, ihe prevailing party or parties therein shall he 

emitJed to an award of rz:aszmab!c costs. and dlsburscmcm.s, as detcnnined 

a court of competent jurisdiction, in addition to any relief to which any of Settling 

Parties he cmit!cil 

12, The Settling Parties cxccmc at! documents and pert~m11 all 

acts necessary or appropriate to eilCctuatc the performance of this Agreement. 

D. it is. inttmded that any portion of this Agreement shaJl he treated as 

sc;>arat,; paragraphs arc deemed uncnforc.;;ablc, :he shall 

continue 1o he full force and effect so long as the primary purpose this Agrecmcn1 is 

unaffected, 

.~.)~rrmJete !nstrumen1, 'i'his l:...greemcnt ctmtains the complete understanding 

bc1"w<:en or among the Settling with respect to claims being hy this 

Agreement Agreement cannot be amended t)r modified any mtumcr except by a Wl"il!ne 

executed hy each of !.he SeHling Parties m by their valiti suece;;snr{s). Each or !.he Settling Panics 

acknowledges that no wrmt:t11ties, covenants, assurances or other promises not 

specifically scr forth in this Agreement have made by any party in com1ectio1! with the suhjcd 

matter of this Agreement, nor ls any party relying on any sud: czmduct in entering intn 

Ais""'l11C:lt Any negotiations. or r:ther communications Parties relating tn the "iuhject 

matter of this an: of no fore~.· or cfiCct and arc superseded by document 

15. This .A.g:reemem may in cmmterparts, and counterpart 

shall have the same fOrce and effect as though the were contaiJiCd a single document 

A faxed signature shall he C{msidered an original signature for all purposes under this Agreement 

16" 

wherein time is a Jl±ctor. 

1 7. This Agr..:cmcm sh:tH 

construed in aceonlancc with the laws orthc Slate of Ca!il(•mia. V cnuc shall 

in San Diego County, CalifOrnia, m with applicable 

SEITl Ev1El\T AGREE'v1ENT 

governed by and 

the courts lo1:otcd 
Page5 

WIT'''''' WfiERLOf_. c-a-:::h -Jfthe: undersigned :::cttJbg:hni'" 

AB;r;<:m<;r.l•fl'ihecilt: a,;.; oC Jto.tt"' 2.1, 2!)'}~. 

FEDERAL ttKPOStT p,·st:RANCF: 

t:ORPOR\ no.- ''~' REcitWER or fK:t~~'NEV SAT~n:iGS "\l'\11 LOAN 

A (b)(6} 

Its: 
Page6 

:!l~&ESS ~~R¥~, ~ ~f~~~ ~~t.Ya~mli 

~Jtff,; di:cliw- ~ ;;.'IJ~ 1~, 1f"1¥~ 

Th'I>!<IIAL ~ l!!illillli'W« <:';~'IIG!I AS li!Cim'lla OF 

-BY M'I<1!'1GUJlll) LDXIII 

~~c;u,11QN_. F.A. 

(b)(6} 

' 
Page 7 

CORPORATlO~ 

J 

(b)(6) 

lA, 
Page8 

I 
PageS 

(b}(6) 

C'n(. U \ FE.Pi::·~H ,~'.1-

DFPOSfJ' [!'-.;M I~A!\fc:~: {'{1RPC·:RATK!N 

/\S J<l- (IF DOW>-IEY S~),_\-I~~OS 

D LOAN i\S~OCU·, TKt~-,:_ r A 

m••••n~··-·- ""•••• ---------------••••••••••••••~ 

1 "'"''"'';_ Y ·nR ..Jui l~..; L: CCH\ IT:;-.n 0 

' ~~~"~ mm•••"--------------' ----~"'•• 

c ','l,:?!\l'CL FOR f·!l~~f N,;'d--!o:·'is 

!:·L'!';<Df~ti lNC '.-"'DSTEPitf.X GRADNEY 

CHARU:S GORB 
Page 10 

SEA:> KADING 

~----

COUNSEL FOR THE FEDERAL 

DEPOSIT INSURANCE CORPORATION 

AS RECEIVER SAVINGS 

LOAN ASSOCIATION, FA 

TODD STEVENS 

l(b)(6) 

.=z~~· ~ 

COUNSEL FOR JOHN U. CONTENTO 

DA v1D M. CHJUTE 

COUNSEL FOR NATIONS 

FUNDING, INC AND STEPHEN GRADNEY 

CHARLES GO:RIA 

COUNSEL FOR FREJDOON A EBRAHIM! 

SETTLEMENT AGREEMENT 

6nf6 
Page 11 

COl!NS-EL FOR Tm:<~ 

:"'-5 RECEiVER Of 0(}\\'NlSY 5<1tV1Xn< 

.4..c'\.tb LOAN A'$$.()(:L\:riON", fj\. 

(b )(6) 

A, 

SFlTLEciEN7 AGREEMENT "- : - -

;-~-c~ ut~ 
Page 12 

(b)(6)