SETTLEJVIENT AGREElVIENT AND RELEASE 

This Settlement Agreement and Release (uAgreemcnt") is made as of this ·1 day of May, 

2012, by~ between, and among the following undersigned parties: 

The Plaintiff, Federal Deposit Insurance Corporation~ as receiver of\Vashington Mutual 

Banlc ('{FDIC-Receiver"), on the one hands and Defendants, Sterling Title Agency, Inc. and 

Karen Amett (collectively the "Settling Deft:ndants"), on the other hand. Individually, the 

······· · ----pnre:Receive:nmd eacirSettUng Dcfendanrmaybe referrooto hcreitr as "Party,, ·alia ........................... .................. .......... 

collectively as the "Parties"). 

RECITALS 

WHEREAS: 

At all relevant times prior to September 25,2008, WHshington Mutual Bank (''the Bank") 

was a depository institution organiz.ed and. existing under the laws of the state of Nevada; 

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 ate now pending in the Alle.tl County Circuit Court under Cause Number 02COl0809~PL-124 ("Action"}, 

On September 25, 2008, the Bank was closed by the Oft1ce of Thrift Supervision and 

pursuant to 12 U.S. C. § 182l(c), the FDIC was appointed receiver. ln accordance with 

12 U.S.C. § 1821.(d), the FDIC-Receivcr 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 have denied liability for the FDIC~Receiver~s claims. 

The undersigned Partios deem it in their best interests to enter into this Agreement to 
avoid the uncertainty, trouble) and expense of further litigation and to resolve this dispute 

between themselves, all without any admission of liability. 

\\1J·IERRAS, the FDIC-Receiver has not heretofore assigned, transferred, or granted, or 

purported to assign, transfer, or grant, any of the claims, demands, or cause or causes of action 

disposed of by this Agreement. 

NOW, THEREFORE, in consideration of the promises1 ·undertakings, payments, and 

releases stated herein, the sufficiency of which consideration is hereby acknowledged, the 

undersigned Parties agree, each with the other) as follows: 

SECTION I: Payment to FDIC~ Receiver 

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

agree to pay the FDIC-Receiver the sum of Fifty-two '01ousand Dollars ($52,000.00) (''the 

B. Upon the execution of an original, or originals in counterparts, of this Agreement 

by each of the undersigned Parties to this Agreement and of the execution of an original, or 

originals in counterparts, of a Stipulation of Di&'.missal, the Settlement Funds shall be paid to the 

FDIC. 

SECTION II: Stipulation of Dismissal 

Upon execution of this Agreement by ead1 of the undersigned Parties, and receipt of the 

Settlement Funds, the FDIC" Receiver shall dismiss the Action as to the Settling Defendants. The 

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

be with prejudice~ w.ith each Party to bear its OW11 costs as these were originally incurred. 

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SECTION ill: Releases 

A. M.YtYJ!J Release. 

Effective upon receipt in full of the Settlement Funds and the dismissal described in 

SECTIONS I and II above, and except as provided in PARAGRAPH III R, each Pa1ty, fur 

herself or itself and for her o-r its successors and assigns, hereby releases and discharges each 

other Party and their respective hejrs) executors> administrators, representatives, employees, 

agents, attomcys, insurers, insurance adjusters, including liability insurers, successors~ and 

assigns ethe Released Partiesn)., fi·om any and all claims, demands, losses, obligations, 

damages, actions, and causes of action~ costs, direct or indirec4 in law or in equity, which now 

exist or may exist in the nlture on account of or in any way arising fi·om or relating to the 

allegations made in the Action~ including; without limitation, the m01tgage loans at issue in the 

Action and any and all known or unknown. foreseen. or unforeseen injuries and damages sustained 

by the FDIC-Receiver, or its representatives, and the handling of its claims for damages arising 

therefrom; and any and all claims that were, or could hRVe bee~ asserted in the Action. 

B. Exnre§~l~9§~rvations From Releases by FDIC-Receiver. 

I. Notwithstanding any otl1er provision by this Agreement, the FDICReceiver does not release, and expressly preserves fully and to the same extent as if the 

Agreement had not beeo executed, any claims or causes of action against any person or entity not 

expressly released 1n this Agreement 

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

construed or interpreted as limiting, waiving. eleasing~ or compromising the jurisdiction and 

authority of the FDIC-Receiver in the exercise of its supervisory or regulatory authority or to 

diminish its ability to i11stitute administrative enfo.rcement proceedings seeking removal~ 

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

rule, or regulation. 

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

waive, or intend to waive, any claims which could be brought by the Ullitcd States through either 

the Department of Justice7 the United States Attorney's Office for the Northetn District of 

Indiana, or any other federal judicial district. In addition, 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. 

SECTION IV: Representations and Acknowledgments 

A. NQ .. A~hn}.~§!QP. of Liability, The undersigned Parties each acknowledge and agree 

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

ims~ and that this Agreement is not an admission or evidence of liability by any of them 

regarding any claim. 

B. Execution In Counterparts. 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 bad 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 aJl Parties to this 

Agreement. Each Party f1.1rtl1er agrees that 1n any dispute regarding the interpretation or 

construction of this Agreement, no presumption shall operate in favor of or against any Party 

hereto by virtue of its role in drafting or not drafting the terms aud conditions set forth herein. 

Facsimile and/or e.lectronic signatures shall be deemed adequate for purposes of this Agreement 

taking effect. 

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C. f.}jnding Effect Each of tbe undersigned persons represents and warrants that 

they afe a Party hereto or are authorized to sign this Agreement oo. 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. 11tis Agreement shall be binding upon ru1d inure to the benefit of the 

tmdersigned Parties and their respective heirs, executors> administrators, representatives, 

successors, and assigns. 

D. Choice of Law and Severability. This Agreement 8hall be inte.rpretcd, construed, 

and enfotced according to applicable federal law, or in its absence> the laws of the State of 

Indiana. The Pmties further agree that in the event that any provision of this Agreement should 

be held to be void, voidable, unlawful, or for any reason unenforceable, the remaining provisions 

or portions of this Agreement shall remain in full force and effect. 

E. Entire Agreement and Amendmet1ts. Each Patty represents and warrants that to 

the extent negotiations and agreements have been made, these negotiations and agreements arc 

merged into this Agreement which constitutes the entire and only agreement and contract and 

understanding between and among the undersi&rned Parties concerning the matters set forth 

berein. Each Pnrty represents and warrants that NO REPRESENTAIJ.QN. PROMISE. OR 

INDUCEMENT 'WHATSOEVER not contained herein has been made to them, and that this 

Agreement is executed without reliance upon any statement or representation by the Released 

Parties, including, but not limited to) the nature and extent of any injuries, damages, and liability 

therefore. This Agreement may not be amended or modified except by a:notl1er written 

instrument sigt1ed by fhe Party or Parties to be bound thereby: or by their respective authorized 

attomey(s) or other rt:.-prcsentative(s). 

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F. Rcasonab le Cooperati.on. 

1. The unde.rsigncd Parties agree to cooperate in good faith to effectuate all 

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

to do} whatever is reasonably necessary to effectuate the signing, delivery, execution, filing, 

recording, and entry of any documents necessary to conclude the Action as to the Settling 

Defendants and to otbcrwise pcrfonn the tenus of this Agreement 

2. Further, the Settling Defendants agree to cooperate fully with the FDICReceiver in connection with the .Action. Any such cooperation that involves any out of pocket 

costs is subject to reasonable reimbursement by the FDIC-Receiver pursuant to its intemal 

guidelines and policy for such reimbursement. 

G. Advice of ~;9JJ1!~~-· Each Party represents that the Patiy has completed all 

investigation the Party requires concerning the facts ofthe FDlC·Receiver's allegations; that the 

Party has completed all litigation discovery required; that with the advice of the Party's attomey, 

the Party has fully evaluated the merits of the Party's claims and defenses asserted; and it is the 

Party's belief and conclusion that the compromise and settlement accomplished by this 

Agreement is in the Party's best interests. Each Party acknowledges that it has consulted with 

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

been explained to that Party by its or her counsel, and that the Party understands that by 

exectJting this Agreement the Party is foregoing the right to have a court or Jury detenninc 

questions of liability and damages as to claims arisjng out of the FDIC-Rcceiver's allegations 

and the handling ofthe Patty's claims, 

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IN WITNESS WHEREOF1 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 lNSURANCE CORPORATION 

as Receiver for Washington Mutual Bank 

(b)(6)___ 71 

--~.te~ 11?:/ \ 'l 

BY;-: 

...................................... , ..... . 

PRIN;~:~:....%.: A~···· +····~-··· _.;_~=··..,_·. _ _:..~_o_-r_"~_ir_~_'f" __ 

STERLING TITLE AGENCY, INC. 

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PRINT NAME: Ka (' e Yl fl, 8 R r./1! rr 

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Date: :.fl1,/flOitZ -tren Arnett L 

PRINT NAME:Js.'B8.e n R, A f!. Ne. it 

CH2\16933614.2/rlmt00431731 

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