Page 5

SETTLEMENT AGREE.
Page 5 of 7

INT

4.2 Ne Admission. It is agreed that no Party hereto admits liability or
wrongdoing of any nature, and that this Settlement Agreement and Stipulation for Entry
of Judgment is made as a compromise of disputed claims.

43 Fair Meaning. The Parties hereto further agree that the language of all
paris of this Settlement Agreement and Stipulation for Entry of Judgment shall in all
cases be construed as a whole, according to its fair meaning, and not strictly for or against
any of the Parties.

44 Governing Law. The Parties agree to submit to the Courts of the City
and County of Orange, California, for any dispute arising out of this Settlement
Agreement and Stipulation for Entry of Judgment, 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 Celifornia law.

45° 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 and Stipulation for Entry of Judgment, the prevailing party shall,
in addition to any other available relief, be entitled to an award of reasonable attorney's
fees and litigation expenses incurred in the prosecution or defense of the action, inchiding
any appeal.

46 Severability. The Parties hereto agree that if any provision of this
Settlement Agreernent or Stipulation for Entry of Judgment is declared by any court to be
legal 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 or Stipulation for Entry of Judgment.

4.7 Binding Effeet. This Settlement Agreement and Stipulation for Entry of
Judgment shall be binding upon and inure to the benefit of the Parties and their respective
heirs, personal representatives, successors, and assigns.

48 Review and Understanding. The Parties have entered into this
Settlement Agreement and Stipulation for Eniry of Judgasent voluntarily, having fully
tead 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 Agreement and Stipulation for Entry of
Judgment and has conducted such inquiry as they deem necessary and advisable prior to
entering into this Settlement Agreement and Stipulation for Entry of Judgment. The
Parties enter into this Settlement Agreement and Stipulation for Entry of Judgment
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

9261TTA 3662-098


Page 8

SETTLEMENT AGREEMENT

Page 7 of 7

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties
have executed this Settlement Agreement and Stipulation for Entry of Judgment as of the
date set forth in the opening paragraph of this Settlement Agreement.

DATED: January 31_, 2012

By:

CHRIS TAKAGAKI

ib.
DATED: January
APPROVED AS

ANDERSON, MePHARLIN & CONNERS LLP

(b)(6)

By

VANESSA H. WIDENE!
UENNIFER 8. MUSE
Attorneys for Plaintiff,
FEDERAL DEPOSIT INSURANCE
CORPORATION, AS RECEIVER FOR INDYMAC
BANK, FS.B.

FEDERAL DEPOSIT INSURANCE
CORPORATION, AS RECEFVER FOR INDYMAC
BANK, F.8.B.

By:

Sienature

4 eo : Pa
Weed Ss Sell a Ue

Type/Print Name and Title

PR

B2G177.1 5662-098


Page 4

SETTLEMENT AGREEMENT

3.4 — Except for the rights, duties, and obligations set forth in this Settlement
Agreement and Stipulation for Entry of Judgment, 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 yenturers, 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 ability company's officers, directors, employees
and/or agents, or any corporation, partnership or limited lability company which was or
is an affiliate of such entity by virtue of common ownership or control, aad 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, to any damages, loss, or Hability
arising from or in conjunction with the Action.

3.5 Notwithstanding any other provision of this Setement Agreement and
Stipulation for Entry of Judgment, 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 TAKAGAKI arising out of any other transactions (other than set forth in
the Action) and arising out of any other existing or failed financial institutions other than
INDYMAC BANK, FSB.

3.6 Notwithstanding any other provision, by this Settlement Agreement and
Stipulation for Entry of Judgment, the FDIC-R does pot 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 Attorney's
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, ef seq., if appropriate. However, FDIC-R.
agrees and consents to an application of any and all sums paid pursuant to this settlement
agreement as an offset to restitution.

4 MISCELLANEOUS

4.1 Conditions of Execution. Each Party acknowledges and warrants that its
execution of this Settlement Agreement and Stipulation for Entry of Judgment is free and
voluntary.

SESIFPL 5662-098


Page 6

SETTLEMENT AGREEMENT

the case, and the Parties voluntarily assume all risks attendant to such unknown,
undisclosed, different, or additional facts or other circumstances.

49 Number. Whenever applicable, the singular shall include the plural, and
the plural shall include the singular.

4.10 Counterparts/Execution. This Settlement Agreement and Stipulation for
Entry of Judgment may be executed in one or more counterparts, all of which shall form
a single agreement. A Party's signature on this Settlement Agreement and Stipulation for
Entry of Judgment by 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,

411 Waiver, No term or condition of this Settlement Agreement and
Stipulation for Entry of Judgment shall be deemed to have been waived, nor shall there
be an estoppel against the enforcement of any provision of this Settlement Agreement
and Stipulation for Entry of Judgment, 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 te any other act than
that specifically waived.

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 and Stipulation for Entry of Judgment.

4.13 Subsequent Agreements. The Parties agree that, upan 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 and Stipulation for Entry of Judgment, 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 ar
others with respect to their rights and obligations created by this Settlement Agreement
and Stipulation for Entry of Judgment.

4.14 Entire Agreement, The Parties hereto further agree and promise that this
Settlement Agreement and Stipulation for Entry of Judgment sets 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 and Stipulation for Entry of Judgment shall not be modified except
in a writing signed by the Parties or their authorized representatives.

S2817TA 5662-098


Page 1

SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT (‘Seitlement Agreement") is entered into
and made effective as of the _3 lAyday of January 2012 ("Effective Date", by and
between FEDERAL DEPOSIT INSURANCE CORPORATION, AS RECEIVER FOR
INDYMAC BANK, F.S.B. ("FDIC-R"), and Christopher Takagaki ("TAKAGARI").
The FDIC-R and TAKAGAKI] may hereinafter be referred to individually as a “Party” or
collectively as the “Parties”.

L RECITALS

1.41  Onor about February 8, 2011, the FDIC-R filed a lawsuit entitled
FEDERAL DEPOSIT INSURANCE CORPORATION, AS RECEIVER FOR
INDYMAC BANK, F.S.B. vs. AMERICAN SIGNATURE FUNDING, INC;
AMERICAN SIGNATURE ESCROW; STARS AND STRIPES LTY, INC, dba
RE/MAX SIGNATURE PROPERTIES: BRADLEY SCOTT KESSEL; WILLIAM
LENOCKER; GONZALO GONZALEZ; CHRISTOPHER YOSHIYUKI TAKAGAKI;
GENTARO KURIHARA, individually and as trustee for the Kurihara Family Trust, THE
KURIHARA FAMILY TRUST DATED FEBRUARY 1. 2007, and DOES 1 through 10,
inclusive, Case No. SACV1[-00231-DOC (MLGx) (hereinafter "Action”).

12 The Action alleged that on June 7, 2007, IndyMac Bank, FSB
@lndyMasc"} funded-a-toan-te ix the principal amount of $242,750

Ld

oan") for her purchase of the real property located at
Noreo,.CA. Property"); and that on July 2, 2007, IndyMac made two
loans. to} totaling $1,045,000 (” Loans“j.which were secured
by the real property located at Corona, CA ("[ }Property").
The Action alleged that defendants participated m a property flipping scheme relating to
ine| ren and Property and concealed facts which were crucial
to IndyMae's decisions to fund the loans. The Action alleged the borrowers defaulted on
the loans within the first few months resulting in damages to the FDIC of more than
$1,183,549.29,

13 TAKAGAKI disputes and denies the FDIC's claims in the Action.

1.4 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 proimises 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 legaliy bound,
agree as follows:

2.1 Recifals. The Recitals set forth above are incorporated into the body of
this Settlement Agreement as though fully set forth herein.

RESTA


SETTLEMENT AGREEMENT

Page 7 of 7

Page 7

IN WITNESS WHEREOF, and intending to be legally bound hereby, the Parties
have executed this Settlement Agreement and Stipulation for Entry of Judgment as of the
date set forth in the opening paragraph of this Settlement Agreement.

DATED: January 31_, 2012

DATED: January, 2012
APPROVED AS TO FORM

DATED: January. 2012

MBITEA

By:

CHRIS TAKAGAKI

ANDERSON, McPHARLIN & CONNERS LLP

By:

VANESSA H. WIDENER

JENNIFER S. MUSE
Attorneys for Plaintiff,
FEDERAL DEPOSIT INSURANCE
CORPORATION, AS RECEIVER FOR INDYMAC
BANK, F.S.B_

FEDERAL DEPOSIT INSURANCE
CORPORATION, AS RECEIVER FOR INDYMAC
BANK, F.S.8.

Signature

Type/Print Name and Title

S602-098


Page 2

SETTLEMENT AGREEMENT
Poge 20f7

2.2 Payment to the FDIC-R by TAKAGAKT. Payment of Two Thousand

Five Hundred Dollars and no/cents ($2,500.00) shall be paid on behalf of TAKAGAKI to
the FDIC-R. Payment shall be made by wire transfer made payable to “Mortgage
Recovery Lew Group Trust Account,” Account Number: Po TRoutine Number:

Reference: American Signature Settlement. The payment shall be made as
follows; $230 paid on or before March 1, 2012; and $93.74 per month for 24 months
beginning April 1, 2012 and continuing on the 1“ day of each month until paid in
full.

2.3 Concurrently with the signing and delivery of this Settlement Agreement,
TAKAGAKI shall execute a Stipulation for Entry of Judgment in the amount of Twenty-
Five Thousand Dollars and no cents ($25,060.00) in the form attached hereto as
Exhibit 1. The Stipulation for Entry of Judgment incorporates by reference the Judgment
(Pursuant to Stipulation), attached to the Stipulation as Exhibit A (the “Iudgment’). Both
the Stpulation and Judgment are incorporated by reference herein and their terms made a
part of this Settlement Agreement. The Judgment shall be non-dischargeable in
bankruptcy. The Stipulation and Judgment shall be held in trust by FDIC-R’s attomeys of
record and shall not be filed mless TAKAGAKI breaches this Settlement Agreement,
including any of the payments required by paragraph 2.2 above and fails to timely cure
said breach pursuant to paragraph 2.5 afler receiving notice of default as provided in
paragraph 2.4, The Judgment (Pursuant to Stipulation) shall not be entered so long as
TAKAGAKI performs under the terms of this Settlement Agreement with respect to
making the payments required by paragraph 2.2 above.

2.4 Inthe event TFAKAGAK] defaults by failing to make a timely payment to
FDIC-R as set forth in paragraphs 2.2 above, FDIC-R shall give written notice of the
default and notice of its intent to enter Judgment (Pursuant to Stipulation) to
TAKAGAKI via either U.S. mail, email or facsimile as follows: Christopher Takagaki at

: ]
TAKAGAKI shall provide written notice of any changes to
is contact information (© Counsel for the FDIC-R.

2.8 TAKAGAKI shall have ten (10) business days from receipt of the notice
of default to cure the default. If TAKAGAK] fails to cure the default within ten (10)
business days, FDIC-R shall retain all consideration it received, and it may, in its sole
discretion, seek to enter the Judgment against TAKAGAKI and enforce said Judgment
against TAKAGAKI. Judgment may be entered by ex parte application (without
testimony or (ial and TAKAGAKI fimther waive the right to a court and/or jury trial)
with notice given to TAKAGAK] by either mail, email or facsimile listed in paragraph
2.4 above.

PITS 3662-098

(b)(4)


Page 3

SETTLEMENT AGREEMENT

Page 3 of?

2,6 Within five (5) business days of FDIC-R's counsel's receipt of the fully
executed Settlement Agreement and Stipulation for Entry of Judgment, FDIC-R's counsel
shall file a request for dismissal of the entire Action against TAKAGAKI with prejudice.

2.7 The Parties shall bear their own costs and attorneys’ fees incurred in the
Action.

2.8 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 and, if necessary,
the Judgment (Pursuant to Stipulation).

3. RELEASE

3.1 Known and Unknown Claims, The FDIC-R and TAKAGAKI
acknowledge and agree that the release they give to each other upon executing this
Settlement Agreement applies to ail claims for injuries, damages, or losses of any type or
nature Gvhether 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.

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
ereditor does not know or suspect to exist in his or her
favor ai 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 its 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, that Party will not be able to make any claim against any other Party for these
damages. Furthermore, cach Party acknowledges that they consciously intend these
consequences even as to claims for darnages 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.

SOLTTL 5662-098