SETTLEMENT AND RELEASE AGREEMENT 

This Settlement and Release Agreement ("Agreement") is made by, between, and among 

the following undersigned parties: 

The Plaintiff Federal Deposit Insurance Corporation as Receiver for AmTrust Bank 

("FD!C-R") and NP, Inc., d/b/a U.S. Mortgage of Florida (the "Settling Defendant") 

(individually, the FDIC-Rand the Settling Defendant may be referred to herein as "Party" and 

collectively as the "Parties"). 

RECITALS 

WHEREAS: 

Prior to December 4, 2009, Am Trust Bank ("Bank") was a depository institution 

organized and existing under the laws of the United States; 

On December 4, 2009, the Office of Thrift Supervision closed the Bank and pursuant to 

12 U.S.C. § 182l(c), the Federal Deposit Insurance Corporation was appointed Receiver. In 

accordance with 12 U.S.C. § 1821(d), the FDIC-R succeeded to all rights, titles, powers and 

privileges of the Bank, including those with respect to its assets. 

Among the assets to which the FDJC-R succeeded were the Bank's claims, demands, and 

causes of action that are the subject of this Agreement 

On December 2, 2015, the FDIC-R filed a complaint for money damages against the 

Settling Defendant ("Complaint"). This claim for damages is now pending in the United States 

District Court for the Southern District ofF!oiida in Federal Deposit insurance Corporation as 

Receiver for AmTrust Bank v. NP, Inc., dlb/a U.S. Mortgage of Florida., Case No. 0: 15-cv062525 («Action"). In the Action, the FDIC-R has asserted claims against Settling Defendant 

arising out of the loans identified in the Complaint (the "Claims"). The Settling Defendant has 

denied liability in the Action. 

The undersigned Parties deem it in their best interests to enter into this Agreement to 

avoid the uncertainty and expense of further litigation. 

(~ 
NOW, THEREFORE, in consideration of the promises, 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-R 

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

agrees to pay the FDIC-R the sum of Four Hundred Seventy Five Thousand Dollars ($475,000) 

("the Settlement Payment"), as follows: 

1. Five Thousand ($5,000) to be paid on or before February 1, 2017; 

2. Five Thousand ($5,000) to be paid on or before March 1, 2017; 

3. Five Thousand ($5,000) to be paid on or before April 1,2017; 

4. Five Thousand ($5,000) to be paid on or before May 1,2017; 

5. Five Thousand ($5,000) to be paid on or before June I, 2017; and 

6. Four Hundred Fifty Thousand ($450,000) to be paid on or before July 1, 2017. 

B. The Settling Defendant shall deliver the Settlement Payment to the FDIC-R by 

wire transfer into an account designated by FDIC-R by notice to the attorneys for the Settling 

Defendant or by certified or cashier's check drawn upon a depository institution acceptable to 

FDJC-R. 

C. If the FDIC-R does not receive any installment of the Settlement Payment in full 

on or before the dates determined by subsection A above, then the FDIC-R, in its sole discretion, 

shall have the right at any time prior to receipt of the Settlement Payment in full (including all 

accrued interest) to: 

1. Extend the period of time for the Settlement Payment, including interest 

accruing from the dates detem1ined by subsection A above, through the date of payment at a rate 

calculated in accordance with 26 U.S.C. § 6621(a)(2); or 

2. Enforce this Agreement, in which event the Settling Defendant agrees to 

jurisdiction in United States District Court for the Southern District of Florida and to pay all of 

[469852/1] 2 
the FDIC-R's reasonable attorney's fees and costs expended in enforcing the tem1s of this 

Agreement; or 

3. Terminate the Agreement and move to vacate any dismissal order, to 

which the Settling Defendant agrees to consent and re-institute an action on the FDIC-R's 

claims. The Settling Defendant further agrees to waive any defense based on any statute of 

limitations that would bar any of the FDIC-R's claims and waive all objections, defenses, claims 

or counterclaims, and covenant and agree not to assert any objections, defenses, claims or 

counterclaims that did not exist or were othern1ise unavailable as of the date this Agreement was 

fully executed; or 

4. Enforce the Stipulation for Entry of Judgment (attached as Exhibit A) 

pursuant to Section I.D below; and/or 

5. Seek any other relief available to it in law or equity. 

Any extension of time under Section LC. I for delivery of the Settlement Payment or 

acceptance ofa portion of the Settlement Payment shall not prejudice the FDIC-R's rights to take 

any of the actions set forth in Section I.C.2 through I.C.5 at any time prior to receipt of 

Settlement Payment (including all accrued interest) in full. 

D. Within ten business days after the full execution of this Agreement by all of the 

Patties, the Parties agree to execute the Stipulation for Entry of Judgment. If Settling Defendant 

defaults on any payment due under the Settlement Payment, Plaintiff may seek to enforce the 

Stipulation for Entry of Judgment in the United States District Court for the Southern District of 

Florida on an ex parte basis, subject to the Federal Rules of Civil Procedme and the Local Rules 

of the United States District Comi for the Southern District of Florida; provided, however, that 

prior to seeking to enforce the Stipulation for Entry of Judgment, the FDIC-R shall provide 

Settling Defendant with notice of a default of a payment due under the Settlement Payment and 

allow Settling Defendant a fourteen (14) day opportunity to cure the default. Notice of default is 

required solely to enforce the Stipulation for Entry of Judgment and shall not otherwise impact 

any of the FDIC-R's rights and/or remedies under this Agreement in any way. If any portions of 

[469852/1] 3 
the Settlement Payment are received prior to default, the FDIC-R shall file a Notice of Partial 

Satisfaction of Judgment concurrently with the Stipulation for Entry of Judgment, to set forth the 

amount of the Settlement Payment already paid. FDIC-R shall be entitled to recover reasonable 

attorneys' fees and costs incurred in connection with enforcing the Stipulation for Entry of 

Judgment. 

SECTION II: Stipulation and Dismissal 

Within ten business days after the latter of: (1) foll execution of this Agreement and the 

Stipulation for Entry of Judgment by all of the Parties, and (2) receipt of the initial $5,000 

installment payment towards the Settlement Payment, the FDIC-R shall file a stipulation of 

dismissal with prejudice in the Action, whereby the Court shall retain jurisdiction to hear and 

determine all matters related to the Action and to enforce this Agreement, executed by the 

attorneys for all Parties hereto. 

SECTION III: Releases 

A. The FDIC-R's Releases. 

Upon receipt of the Settlement Payment in full and except as provided in Section IILC, 

the FDIC-R, for itself and its successors and assigns, hereby releases and discharges the Settling 

Defendant and its heirs, executors, trustees, administrators, representatives, successors, and 

assigns, from any and all claims, demands, obligations, damages, actions, and causes of action, 

direct or indirect, in law or in equity, belonging to the FDIC-R, that arise from the Claims. 

B. The Settling Defendant's Releases. 

Effective simultaneously with the release granted in Section III.A. above, the Settling 

Defendant, on behalf of itself and its heirs, executors, trustees, administrators, representatives, 

attorneys, successors, and assigns, hereby releases and discharges the FDIC-R, and its 

employees, officers, directors, representatives, attorneys, successors and assigns, from any and 

(b)(6) D [469852/1] 4 
all claims, demands, obligations, damages, actions, and causes of action, direct or indirect, in law 

or in equity, that arise from the Claims. 

C. Exceptions from Releases by FDIC-R. 

1. Notwithstanding any other provision of this Agreement, the FDIC-R does 

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

been executed, any claims or causes of action; 

a. Against the Settling Defendant or any other person or entity for 

liability, if any, incurred as the maker, endorser or guarantor of any promissory note or 

indebtedness payable or owed by them to FDIC-R, the Bank, other financial institutions, or any 

other person or entity, including without limitation any such claims acquired by FDIC-Ras 

successor in interest to the Bank or any person or entity other than Bank; and 

in this Agreement. 

2. 

b. Against any person or entity not expressly released by the FDIC-R 

Notwithstanding any other provision of this Agreement, nothing in this 

Agreement shall be construed or interpreted as limiting, waiving, releasing, or compromising the 

jurisdiction and authority of the Federal Deposit Insurance Corporation in the exercise of its 

supervisory or regulatory authority or to diminish its ability to institute administrative 

enforcement or other proceedings seeking removal, prohibition, or any other relief it is 

authorized to seek pursuant to its supervisory or regulatory authority against any person. 

3. Notwithstanding any other provision of this Agreement, this Agreement 

does not purport to waive, or intend to waive, any claims that could be brought by the United 

States through the Department of Justice, the United States Attorney's Office for any federal 

judicial district, or any other department or agency of the United States as defined by 18 U.S.C. § 

6. In addition, the FDIC-R specifically reserves the right to seek court-ordered restitution 

pursuant to the relevant provisions of the Mandatory Victims Restitution Act, 18 U.S.C. §§ 3322 

and 3663 et. seq., if appropriate. 

(b)(6)D 

[469852/1] 5 
SECTION IV: Representations and Acknmvlcdgcmcnts 

A. Authorized Signatories. All of the undersigned persons represent and warrant that 

they are Parties hereto or are authorized to sign this Agreement on 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. This Agreement shall be binding upon and inure to the benefit of the 

undersigned Parties and their respective heirs, executors, trustees, administrators, representatives, 

successors and assigns. 

B. Advice of Counsel. Each Party hereby acknowledges that he, she, or 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. 

SECTION V: Reasonable Cooperation 

The Parties agree to cooperate in good faith to effectuate all the terms 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 and to otheiwise perform the terms of this 

Agreement. 

SECTION VI: Other Matters 

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

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

claims and defenses, that this Agreement is not an admission or evidence of liability or infirmity 

by any of them regarding any claim or defense, and that the Agreement shall not be offered or 

received in evidence by or against any Party except to enforce its terms. 

B. Execution in Counterparts. This Agreement may be executed in counterparts by 

one or more of the Parties and all such counterparts when so executed shall together constitute 

the final Agreement, as if one document had been signed by all Parties; and each such 

counterpart, upon execution and delivery, shall be deemed a complete original, binding the 

Parties subscribed thereto upon the execution by all Parties to this Agreement. 

(b)(6)D [46985211] 6 
(b)(6) 

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

according to applicable federal Jaw, or in its absence, the laws of the State of Ohio. 

D. Notices. Any notices required hereunder shall be sent by registered mail, first 

class, return receipt requested, and by email, to the following: 

lfto the FDIC-R: Paul Levin; Mortgage Recovery Law Group, 700 N. Brand Blvd., 

Suite 830, Glendale, CA 91203; Telephone: (818) 630-7900; Email: 

'--------' 

If to the Settling Defendant: Michael L. Feinstein; Michael L. Feinsten, P.A., 200 S.E. 

18th Court, Fort Lauderdale, FL 33316; Telephone: (954) 767-9662; Email: 

E. Entire Agreement and Amendments. This Agreement constitutes the entire 

agreement and understanding between and among the undersigned Parties concerning the matters 

set forth herein and supersedes any prior agreements or understandings. This Agreement may 

not be amended or modified, nor may any of its provisions be waived, except in writing signed 

by the Parties bound thereby, or by their respective authorized attorney(s), or other 

representative( s ). 

F. Titles and Captions. All section titles and captions contained in this Agreement 

are for convenience only and shall not affect the interpretation of this Agreement. 

G. No Confidentialitv. The undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

[Continued on Page 8] 

[46985211] 7 

(b)(6) 
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by 

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

Date: \ I ID I lo l 1 

. , 

Date I /ii,;/1 / 

I 

[46985211] 

FEDERAL DEPOSIT INSURANCE CORPORATION AS 

RECEIVER FOR AMTRUST BANK 

BY: I 

TITLE: 

PRINT NAME: 

NP, INC,, d/b/a U,S. MORifGAGE OF FLORIDA 

BY: 

TITLE: r, 11 ,, 

lj . IJ 

PRINTNAME: 11['lft1/"m, l,0UI.Vifc- -,l~~"-Tl-r/~1~---

8 

(b)(6) 

(b)(6)