SETILEMENT AGREEMENT AND MUTUAL RELEASES 

This Settlement Agreement and Mutual Releases ("Agreement") ace made this L.f_rf.... 

day of ¥..~ 2012 by, between and among the following undersigned Parties: the 

Plaintiff, Federal Deposit Insurance Corporation, in its capacity as receiver for AmTrnst Bank 

CPDIC-R") and the Defendant Artisan Mortgage Company, Inc. C'Artisan~•), parties in a case 

captioned FDIC as Receiver for A.mTrnst Bank v. Malik, et al., Case No: 1:09-CV-04805 

(E.D.N.Y.) ("The .Litigation"). 

WHEREAS, In November. 2009, AmTrust Bank ("AmTrust") initiated The Litigation 

against its closing attorney Pankaj Malik, several of its mortgage brokerS) and other individuals 

and entities alleged to be involved in the origination of mortgages using improper flip 

transactions and straw buyers, including claims against Artisan related to the origination of loan 

flles containing Certain misrepresentations; 

WHEREAS, on December 4, 2009, AmTrnst was closed by the Office of Thrift 

Supervision and, pursuant to 12 U.S.C. § 1821(c), the ·Federal Deposit Insurance Corporation 

was appointed receiver. In accordance with 12 U.S.C. § 182l(d). the FDIC·R succeeded to aU 

rights, titles, powers. and privileges of the Bank1 including those with respect to its assets and all 

of the Bank's claims, demands, and causes of action, including those claims asserted in The 

litigation; 

'WHEREAS, Artisan has denied the allegations asserted against it for breach ofcontract; 

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WHEREAS, Artisan has provided the FDIC-R with a sworn aff1davit and other financial 

materials to demonstrate that it has limited means from which to pay a judgment; 

WHEREAS,' the FDIC-R has relied upon the accuracy of the information 

provided by Artisan regarding its fmancial condition as a material condition for entering this 

Settlement Agreement; and 

WHEREAS. without any admission of liability by any of the undersigned Parties, the 

Parties deem it to be in their respective best interests to end their disputes arising out of and 

related to The Litigation, and avoid further costs and risks associated with The Litigation and 

enter into this Agreement. 

NOW, THEREFORE. in consideration of the proinises, tmdertakings and releases stated 

herein, the sufficiency of which consideration is hereby acknowledged, the undersigned Parties 

agree, each with each other, as follows: 

Section 1: PaYPl§t to the FDJ~-R. 

A. As·an· essential c-ovenant . and condition to this Agreement, Artisan agrees to pay 

the FDIC-R the swn of Fifteen Thousand Dollars ($15,000.00) (the "Settlement Funds") to be 

paid within 30 days of the execution of this Agreement, together with interest thereon 

commencing on the 3lsi day after the execution of this Agreement through the date of payment, 

at a rate of 6% per anum. 

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

by each of the undersigned Parties, but no later than•30 days after the execution of this 

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Agreemen~ Artisan shall deliver the Settlement Funds to the FDIC·R by direct wire transfer into 

an account designated by FIHC-R or by certified or cashier's check drawn upon a depository_ 

institution acceptable to FDIC-R. 

C. 'Without waiving any other rights that FDIC-R may have, in the event that the 

Settlement Funds, including all accm~ interest as may be applicable, are not paid to the FDIC-R 

by Artisan in the respective a,mounts described above, and within 30 days of the ~ecution of this 

Agreement, then the FDIC-R shall have the right. in its sole discretion, prior to the receipt of any 

delinquent payment by Artisan to declare this .Agreement null and void, extend this Agreement 

for the period of tjme untU the FDIC-R receives all of the·Settlement Funds and/or enforce this 

Agreement The Parties further aclq:l.owledge and-coosent to the jurisdiction of Magistrate Judge 

Attack for enfor~ement ·of .

thjs Agreerrient in ..co~on with her co_ntinuing role overseeing . 

settlement negotiations related to The Litigation. 

Section 2: Artisan's Ag:ret:me!).t to Cooperate. 

A As an essential coVenant and condition to this Agreement, Artisan agrees to make 

available a corporate representative, knowledgeable about the Subject Loan transactions and to 

provide a sworn statement-to the FDIC-R regardi.Dg the persons, entities, and events involved in 

the Subject Loan transactions and The Litigation. 

B. Artisan funher agrees to cooperate fully with the FDIC-R in the ongoing 

Litigation and any furure litigation or other proceedings related to the persons, entities, and 

events involved in The Utigation, including, if necessary, testifying regarding the persons, 

entities, and events involved inThe Litigation. 

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Section 3: Stipulations and Dis;miss§ls. . . 

Upon execution of this Agreement by each of the undersigned Parties and upon re-eeipt of 

the Settlement Funds by the FDIC-R in the amount specified in Section 1 above from Artisan, 

plus any accrued interest pursuant to Section lA, the FDJC-R shall dismiss with prejudice all of 

its claims .in the Litigation against Artisan. A stipulation of dismissal with prejudice as to these 

claims shall be prepared by the FDIC-R and executed by Artisan within 30 days after receipt of 

the sworn statement by the FDIC·R from Artisan. 

Section 4: MutualBeleases. 

A. Release of Artisan by the IDIC-R. 

Effective upon payment of the Settlement Funds in the amotmt specified in Section 1 

above, the FDIC-R hereby releases and discharges Artisan. its insurers, representatives, 

successors, assigns and attorneys, from any and all claims, demands, obligations, da.tmges, 

actions, causes of action, direct or indirect~ in law or in equity, belonging to the FDIC-R that 

were asserted in The Litigation. including, without limitation, claims regarding loans for whiclt 

Pankaj Malik or Malik & Associates; P.C. served as a closing attorney for AniTrust Bank. 

B. Release ofthe FDIC-R by Artisan. 

Effective simultaneously with the release in Section 3A above, Artisan on its own behalf, 

and on. behaJf of its insurers, representatives, successors, assigns and attorneys hereby releases 

and discharges the FDIC-R from any and aU claims, demands, obligcW.ons, damages, actions, 

causes of action, direct or indirect. in law or in equity, that arise from or relate to the Litigation, 

including but not limited to any rights of subrogation. 

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C. Express Reservation of ReJ&ruies By The FDIC. 

l . Notwithstanding any other provision, by this Agreement, the FDIC·R does not 

release and expressly preserves fully and to the same extent as if the Agreement had not been 

executed, any rights, claims or causes of action: 

L Against any other party in the Litigation not expressly released by this 

Agreement; and 

ii. Which are not expressly released in Section 4A, above. 

2. Notwithstanding any other provision of this Agreement, nothing herein limits, 

waives, relQaSes. diminishes or compromises the jurisdiction and authority of the Federal Deposit 

Insurance Corporation in the exerCise of its supervisory or regulatory authority to institute 

administrative enforcement or other proceedings. seeking removal, prohibition, civil penalties, 

restitution or other relief it is authorized· to seek pursuant .to its supervisory or regulatory 

authority against any person, or which may arise by operation oflaw; rule. or regulation. 

3. Notwithstanding any other provision of this Agreement, this Agreement does not 

waive any claims which couid be brought by the United States through the Department ofJustice 

or the Unjted States Attorney's Office for any federal judicial district. In addition, the FDIC~R 

specifically reserves the right to seek court ordered restitution pu.rSuant to the relevant provisions 

of the Victim and Witness Protection Act, 18 U.S.C. §.3663, et. seq., if appropriate. 

SectionS: Representations and Aclroowledgments 

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

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

claims previously defined and that this Agreement is not an admission or evidence of any 

liability of any of them regarding any claim. 

B. Execution in Counterparts. This Agreement may be execute4:1 in OOWlterparts 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 UPQn 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 a 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, executorsj administrators, representatives, successors, assigns 

and attorneys. 

D. Specific Representations Warranties and Disclaimer. Artisan expressly 

acknowledges that in determining to settle the claims released here, the FDIC-R has reasonably 

and justifiably relied upon the accuracy of financial information in the affidavit submitted. If. in 

its affidavit, Artisan has failed to disclose any interest, legal, equitable, or beneficial, in any 

asset, Artisan agrees to cooperate fully with the FDIC-R to transfer its interest in the asset to the 

FDIC-R and to sign any and all documents necessary to transfer its interest in the asset to the 

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FDIC-R. Moreover, if. in its affidavit Artisan has failed to disclose any interest, legal, equitable, 

or beneficial, in any asset. the FDIC-R in its sole discretion. may exercise one or more or all of 

the following remedies: (a) the FDIC-R may declare the rcleases granted to Artisan as null and. 

void; (b) the FDIC-R may retain the Settlement Funds; (c) the FDIC may sue Artisan for 

dam':ges. an injunction. and specific performance for the breach of this agreement; and (d) the 

FDIC-R may seek to vacate any dismissal orrler and reinstate the FDIC-R's claims agai.nst the 

Artisan. Artisan agrees Ulai if, in its affidavit, it has failed to disclose any interest, legaL 

equitable, or beneficial, in any asset, Artisan consents to tbe reinstatement of FDIC-R's claims 

and waives any statute of limitations that would bar any of the FDIC-R's claims against it. 

E. Choice of Law. This Agreement shall be interpreted, construed and enforced 

according to applicable federal aw~ or in its absence. t,b.e laws of the State of New York. 

F. 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 parties to be bound·thereby, or by their respective authorized attorneys 

or other representatives. 

G. Advice Qf COui1sel. Each Party hereby 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 WIIEREOF, the Parties hereto have caused this Agreement to be executed 

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

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Federal Deposit fusurance Corporation. as 

Recej¥.et:.for AmTrust Bank 

(b)(6) 

Artisan Mortgage Company, 

Date,___;_q~/J_J~h~~_-_ By 

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