&4 This Agreement may be executed in counterparts and shail be effective on
the date first executed by any one of the Parties hereto if so executed in counterparts (ihe
~offective date"). An authenticated copy of this Agreement can be used for any purpose for
which the original may be used.

(b)(6)
paren: (242 / PLO
NORMAN J. MALLILLINS Appraiser
(b)(6)
DATED: t[ fron
7 FEDERAL DEPOSIT INSURANCE
CORPORATION as Receiver for
Downey Savings & Loan Association, F.A.
By: David T. Eurtels
lts: Sento Atecney,
APPROVED AS TO FORM:
HERSHORIN & HENRY LEP
(b)(6) :
By; 07/3 /s PO
JER CO WECOR
‘orney for Federal Deposit Insurance
Corporation as Receiver for Downey
Savings & Loan Association. F.A.
y OFFICES OF DARBY
(b)(6)

By ihe) ve)

ANA DEAN

~
‘Attorney foyNorman J, Mallillin

Page 4 of 4

SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE


SETTLEMENT AGREEMENT AND MUTUAL RELEASE

ES: The parties to this Settlement Agreement (Agreement’) are Plaintiff

RANCE CORPORATION as Receiver for Downey Savings & Loan

(Appraiser”), on the other hand. The FDIC and Appraiser are sometimes herein collectively
referred to as the “Parties,”

2. RECITALS: This Agreement is made with reference to the following facts:

2.1 Certain claims arose between the Parties concerning two residential loans.
‘The first, for. $425.000-¢" { Loan”) was made by Downey to borrowers named |
“Th f Loan was secured by a deed of trust on real property

commonly known.as. fallejo, California. The Appraiser prepared an appraisal
report effective as of September 20, 2005 that was provided to Downey in connection with the
applicationtor-the Loan, The second loan, for $272,000 (° Lo} Aan -was.imade by
Downey to a borrower.named The [-}: oan-was-secured-by-a-deedof
trust on real property commonly known asp Hercules, California, The mortgage

broker that submitted the Appraiser’s two appraisal reports to Downey was QUEST F.5., INC..a
California corporation d/b/a Quest Financial Services. The joan-and] ——JLean
were approved and funded by Downey and subsequently defaulted. Following trustee's
foreclosure sales on the deeds of trust thal secured the Loan and ——]Lean: Downey:
sustained a loss that the FDIC is charged with secking to recover upon (the “Claims”.

2.2 The Claims subsequently became the subject of a Complaint
Complaint’) entided FDIC v. Quest Jac, dba Quesi Financial Services. et al, Case No,
€V10-00710 DOC (RNBx), filed by the FDIC in the United States District Court far the Central
District of California.

uthern Division (the “Action’).

2.3. The Appraiser was served with the Summons and Complaint in the
Action,

24 The Parties have agreed to resolve the Claims alleged by the FDIC against
the Appraiser in the Action pursuant to the terms stated in this Agreement. Accordingly, the
Appraiser has not responded to the Complaint.

25 By this Agreement the Parties intend to settle and dispose of. fully and
completely. any and all claims, demands, causes of action, obligations, damages, and liabilities
Page 1 of 4

SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE

(b)(4),(b)
(8)(4),(b)
(6)


that arise out of or relate to the Action and the Claims alleged therein by the FDIC against the
Appraiser.

3. NO ADMISSION RE MERITS OF CLAIMS: The Parties agree that nothing in
this Agreement, and no performance ander this Agreement. shall be construed as an admission

by either Party of the validity or invalidity of the Claims alleged in the Action against the
Appraiser: and. the Parties agree that this Agreement is entered into for the purpose of
convenience and to compromise the disputed Claims alleged in the Action.

4. SETTLEMENT TERMS: The Parties agree to the following settlement terms:

4.1 The Appraiser agrees to pay to the FDIC the sum of $5,000.00 concurrent
with his execution of this Agreement.

4,2 Upon execution of this Agreement by the Appraiser and the clearance of
his tender of payment to the FDIC. the FDIC shall fle a dismissal with prejudice of the
Appraiser from the Action.

5. UTUAL RELEASE.

Sl In consideration of the Settlement terms as set forth in Paragraph 4 above,

and all other promises, covenants and consideration provided for herein, the Parties agree that,
except as to such rights or claims as may be

ed by this Agreement, they hereby covenant not

to sue each other again on the Claims and the Parties acknowledge full and complete satisfaction

of, and hereby release, remise. and forevee discharge each other, including their respective

officers, directors. affiliated companies, agents. servants. representatives, spouse. heirs.

su

ors of pred

ors in interest, assignees, attorneys, employees and contractors of and
from any and all Claims. demands, counts, obligations, agreements, damages, liabilities, losses,

costs and expenses of any kind, in law or in equity, whether known or unknown, that either Party
now holds, er has ever held against the other, that arise oul of or are in any way connected with,
the Claims alleged in the Action.

$.2. This Agreement shall be binding on the Parties and on their respective

officers, directors, affiliated companies. agents, servants, representatives, spouse. heirs,

cessors or predec $ in interest, assignees, altorneys, employees and contractors and shail

inure to the benefit of said Parties. and each of them.
6. ATTORNEYS’ FE

interpret this Agreement, the prevailing party shall be entiled to an award of reasonable

In the event that any action is brought to enforce or

attorneys” fees in addition to any other relief to which the prevailing party may be entitled,
7. REPRESENTATIONS AND WARRANTIES: The Parties represent. warrant,
and agree as follows:

7A The FDIC is the lawfully appointed Receiver for Downey and has
succeeded to and now halds each of the Claims that are the subject of this Agreement. The
Page 2 of 4

SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE


FDIC has the authority t enter into this compromise and settlement of the Claims as the
Receiver of Downey.

7.2. Each of the Parties has received or had the opportunity to seck their own
independent legal advice with respect fo the advisability of executing this Agreement. The
Parties acknowledge that they have executed this Agreement without fraud, duress, or undue
influence. The Parties affirm that they have read this Agreemem and understand the contents
hereof,

7.3 No Party, nor any agent or attorney of any Party. has made any statement.
Fepresentalion, or promise to any other Party regarding any facts which the Party has then relied
upon in entering into this Agreement, and the Parties here each affirm that they have not relied
upon any statement, representation or promise by any other Party, or of any agent or atiomey for
another Party, in executing this Agreement, or in making the settlement provided for herein.
except as is expressly represented or promised in this Agreement.

7.4 None of the Parties have heretofore assigned, iransferred, or granted. or
purported to assign, transfer, or grant, any of the Claims that are alleged in the Action.

7S Lach Party agrees to execute any additional documents as reasonably
convenient, necessary or desirable to carry out the provisions of ihis Agreement.

8. ISCELLANEOU.

al This Agreement shall be deemed to have been executed and delivered

within the State of California, and the rights and obligations of the Parties hereto shall be

construed and enforced in accordance with, and governed by, the laws of the State of California.

8.2 This Agreement constitutes a single, integrated written contract expressing
the entire agreement of the Parties. This Agreement may only be modified in a writing signed by
ail the Parties. This Agreement shall be interpreted in accordance with the plain meaning of its
terms and not strictly for or against any of the Parties to this Agreement.

8.3 The provisions of this Agreement are contractual and not mere recitals.
The Agreement shall be considered severable. such that if any provision or part of the Agreement
is ever held invalid under any law or ruling, that provision or part of the Agreement shall remain
in force and effect to the extent allowed by law, and all other provisions or parts shall remain in
full force and effect.

Page 3 of 4

SETTLEMENT AGREEMENT AND MUTUAL GENERAL RELEASE