SETTLEMENT AGREEMENT
Page $ of 7

be entitled to an award of reasonable attorney's fees and litigation expenses incurred in
the prosecution or defense of the action, including any appeal.

4.4 Severability, The Parties hereto agree that ifany provision of this
Settlement Agreement is declared by any court to be illegal or invalid, the validity of the
remaining paris, terms or provisions shall not be affected thereby, and such illegal or
invalid part, term or provision shall be deemed not te be part of this Settlement
Agreement,

4.7 Binding Effect. This Settlement Agreement 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 Partics have entered into this
Settlement Agreement voluntarily, having fully read 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
Agreementand has conducted such inquiry as they deem necessary and advisable prior to
entering into this Settlement Agreement . The Parties enter into this Settlement
Agreement 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 the case, and the Parties voluntarily assume all risks attendant to such
unknown, undisclosed, different, or additional facts or other circumstances,

4.9 | Number, Whenever applicable, the singular shall include the plural, and
the plural shall include the singular.

440 Counterparts/Execution. This Settlement Agreement may be executed
in one or more counterparts, all of which shall form a single agreement. A Party's
signature on this Settlement Agreementby 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.

_441 Waiver. No term or condition of this Settlement Agreement shall be
deemed to have been waived, nor shall there be an estoppel against the enforcement of
any provision of this Setdement Agreement , 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 to any other
act than that specifically waived.

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SETTLEMENT AGREEMENT
Page dof F

to any 1 liability arising from or in conjunction with the Action relating
ro.ike Property, and the Hammersley Appraisal.

3.8 Notwithstanding any other provision of this Settlement Agreement, the
FDIC-R does not release, and expressly preserves fully and to the same extent as if the
Setilement Agreement had not been executed any claims against
HAMMERSLEY/PRESIDIO arising out of any other transactions or appraisals (other
than set forth in the Action) and arising out of any other existing or failed financial
institutions other than WASHINGTON MUTUAL BANK, FA.

3.6 Notwithstanding any other provision, by this Settlement Agreement, the
FDIC-R does not release, and expressly preserves fully and to the same extent as ifthe
Settiement 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 Atormey’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, ze seg., IP appropriate.

4 MISCELLANEOUS

41 Canditions of Execution. Each Party acknowledges and warrants that its
execution of this Settlement Agreement {s free and voluntary.

4,2 No Admission. [tis agreed that no Party hereto admits lability or
wrongdoing of any nature, and that this Settlement Agreement is made as a compromise
of disputed claims.

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

4.4 Governing Law. The Parties agree to submit to the Courts of the City
and County of Los Angeles, California, for any dispute arising out of this Settlement
Agreement, or related thereto, and consent to the jurisdiction of said Courts and further
agree that ary and all matters of dispute shall be adjudicated, governed and controlled
under California 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, the prevailing party shall, in addition to any other available relief,

OU SDR.EL}T#7 199726 19302. $662-088


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SETTLEMENT AGREEMENT
Page 6 of?

4.12 Headings. ‘The headings of paragraphs herein are intended solely for the
convenience of reference and shal! not contro! the meaning or interpretation of any of the
provisions of this Settlement Agreement.

4.13 Subsequent Agreements. The Parties agree that, upon the reasonable
request of the other Party, they shal] execute, acknowledge, and deliver any additional
instruments or documents that may reasonably be required to carry out the intentions of
this Settlement Agreement , 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 or others with respect to their rights and obligations
created by this Settlement Agreement .

4.14 Entire Agreement. The Parties hereto further agree and promise that this
Settlement Agreementsets forth the entire agreement between and among the Parties and
fully supersedes any and all prior negotiations, agreements or understandings mace
between or among the Parties, This Settlement Agreement shall not be madified except
in a writing signed by the Parties or their authorized representatives,

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

DATED: November ©© , 2011 KEENEY WAITE & STEVENS
APPROVED AS TO FORM

By|

Mary M, Best

Tadd F, Stevens
Attorneys for Defendants,
ROD HAMMERSLEY/PRESIDIO and
PRESIDIO APPRAISAL SERVICES, INC.

DATED: November 2-2 , 2011 PRESIDIO APPRAISAL SERVICES, INC,
By:
ROD HAMMERSLEY/PRESIDIO
BY? gPISP,
Tithe

‘S1ROAR TEI34T 195926 1Oh102 5662-088

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SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT ("Seitlement Agreement") is entered into
and made effective as of the day of August 2011 (Effective Date"), by and
between FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for
WASHINGTON MUTUAL BANK ("FDIC-R"), ROD HAMMERSLEY/PRESIDIO
(HAMMERSLEY/PRESIDIO'), PRESIDIO APPRAISAL SERVICES, INC,
(°PRESIDIO") . The FDIC-R and HAMMERSLEY/PRESIDIO may hereinafter be
referred to individually as a “Party” or collectively as the “Parties”.

i. RECITALS

[

LJ__In September of 2004, KASHIFI purchased the two adjoining parcels []
] for $1,250,000. On May 24, 2007, KASHIFT ente

into. Purchase. & Sale Agreomentavit fo Property. |

agreed.to-buy. the{ Property for $1.9 milion {Oye} applied for ar
obtained two loans from Washington Mutual Bank totaling $1,709,816, The FDIC-R
alleges that HAMMERSLEY/PRESIDIO prepared an appraisal of the|
Property (the “Hammersley Appraisal”) to be used by the lender in commection with the
mortgage finance transaction. Hammersley alleges that he prepared an appraisal o
which is reflected in the Harnmersley Appraisal.

into a Purchase & Sale Agreement to
sella agreed.to.purchase this
unimproved lot for $870,000. Royal Kirkland prepared an appraisal of the
Properly. The appraisal was submitted to IndyMac Bank FSB as part of the morgage
finance transaction. In reliange on the appraisal and additional information, IndyMac
Bank,-SB-funded-aloar to in the amount of $696,000.

1.3 No payments were made on the foans. The loans went into default and
were foreclosed.

14  Onor about April 30, 2010, the POIC-R filed a lawsuit entitled
FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver for INDYMAC
BANK, F.S.B., and FEDERAL DEPOSIT INSURANCE CORPORATION as Receiver
for WASHINGTON MUTUAL BANK vs. ROYAL KIRKLAND, an individual;
ACCURATE APPRAISAL SERVICES, type of entity anknown; ; DAVID A. KASHIFL,
an individual; ROD HAMMERSLEY, an individual; PRESIDIO APPRAISAL
SERVICES, INC., a California corporation, and DOES | through 15, inclusive, Case No,
10-03286-GAF (P]Wx) (hereinafter “Action”).

18 The Action alleged that HAMMERSLEY/PRESIDIO breached the
contract and made negligent misrepresentations in the Hammersley Appraisal, and that
KASHIFI intended to defraud the lenders in connection with the sale of th
and| roperty.

)3088 #11987 199726 191102 1

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SETTLEMENT AGREEMENT
Page Pf?

DATED: November 2@ 2011

DATED: November 15,2011
6) APPROVED AS TO FORM

DATED: November _§ 8, 2011

abataa tyke RTS LIOR

ROD HAMMERSLEY

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ROD HAMMERSLE

ANDERSON, McPHARLIN & CONNERS LLP

B

VANESSA . WEDENER,
Attorneys for Plajntiffs, v
FEDERAL DEPOSIT INSURANCE CORPORATION
as Receiver for WASHINGTON MUTUAL BANK

FEDERAL DEPOSIT INSURANCE CORPORATION
as Receiver for WASHINGTON MUTUAL BANK

(b}(6)

PETER E

RK ccleaud S Cxclls Coumeed

Type/Print Name and Title

3662-088


SETTLEMENT AGREEMENT
Page 2087

16 HAMMERSLEY/PRESIDIO dispute and deny the FDIC-R's claims in the
Action,

L7 The Parties desire and have agreed to seitie all claims relating to the
Action.

2 AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and promises 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 legally bound,
agree as follows:

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

2.2 Payment to the FRIC-R by HAMMERSLEY/PRESIDIO. Payment of
One Hundred Twenty-Five Thousand Dollars and no/eents ($125,000.00) shall be paid on
behalf of HAMMERSLEY/PRESIDIO to the FDIC-R, Payment shall be made payable
to “Mortgage Recovery Law Group Trust Account.”

23 Within 5 business days of the FDIC-R's counsel's receipt of the settlement
funds, the FDIC-R shall file a stipulation for dismissal of the Action with prejudice as to
HAMMERSLEY/PRESIDIO.

La Upon the PBIC-R’s receipt of the settlement payment, the PDIC-R agrees
to remove its claim relating to the Hammersley Appraisal from the lawsuit entitled FDIC
us Receiver for Washington Mutual Bank v, LSI. Case No. SACV1i-706JST{MLGx) (the
7S} Lawsuit”). The Parties agree the FDIC-R shall remove its claim in the LS! Lawsuit
relating to the Hammersley Appraisal only and the FDIC-R is not prevented front
pursuing claims relating to any other appraisals in the LSI Lawsuit or any other matter.

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

2.6 Each Party agrees that Section 664.6 of the Code of Civil Procedure af 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.

3 RELEASE

34 Kaown end Unknown Claims. The FDIC-R, HAMMERSLEY,
PRESIDIO acknowledge and agree that the release they give to each other upon
executing this Settlement Agreement applies to all claims for injuries, damages, or losses

GEMUAR, FE E34 7199926, 19 ORE 3662-088


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SETTLEMENT AGREEMENT

Page 307

of any type or nature (whether those injuries, damages, or losses are known or unknown,

foreseen or unforeseen, patent or latent) which they may have a teach other arising
from or in conjunction with the Action relating to if Property, (bX6)
and the Hammersley Appraisal.

3.2 The Parties bereby expressly waive application of California Civil Cade
$1542 as it relates to the Action. The Parties certify that they have read and understood
the following provisions of California Civil Cade $1542 which states in pertinent part as
follows:

A general release does not extend to claims which the
creditor does not know or suspect to exist in his or her
favor at the time of executing the release, which if known
by him or her must have materially affected his or her
setiement with the debtor.

3.3 The Parties understand and acknowledge that the significance and
consequence of their waiver of California Civil Code $1542 is that even if either Party
should eventually suffer additional damages arising from or in canjunction with the

Astion.relating.to-the| Property and the Hammersley Ay al
facts or circumstances related to the Action relating to tf | ©)6)
raperty and ihe Hanimersley Appraisal, that Party will not to make any

claim against any other Party for those damages. Furthermore, each Party acknowledges
that they consciously intend these consequences even as to claims for damages that may
exist as of the date of this release relating t 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.

3.4 Except for the rights, duties, and obligations set forth in this Settlement
Agreement , the Parties each hereby fully, finally, and ferever release and discharge the
other Parties, and any and all of its respective, employees, brokers, investors, members,
partners, joint venturers, independent contractors, attomeys, accountanis, insurers, agents,
investors, representatives, officers, directors, and any corporation, partnership or limited
lability company which was or is at any tine the parent or wholly owned subsidiary of
such entity, and any such corporation's, partnership's or limited Hability company's
officers, directors, employees and/cr agents, or any corporation, partnership or limited
liability company which was or is an affiliate of such entity by virtue of common
ownership or control, and any such corporation's, partnership's or limited liability
company’s, officers, directors, employees and/or agents of and from any and al! 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,

OL304E 111267. 199726.550102 t S862.088