Party does not know exists, and which, ifknown, 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.

1.26 Each Party hereby fully, finally, and forever releases and discharges the
other Party, and any and all of its respective past, present, and future affillates,
employees, members, partners, joint venturers, independent contractors, attomeys,
insurers, investors, successors, assigns, representatives, officers, directors, shareholders,
independent contractors, predecessors, successors and assigns, 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 Hmited
liability company’s officers, directors, employees, or any corporation, partnership or
limited ffability- company which was or is an affillate of such entity by virtue of common
ownership or control, and any such corporation's, partnership's or limited liability
company's, officers, directors, and/or employees of and from. any and all actions, causes
of action, claims, demands, damages, debts, losses, costs, expenses, attorney fees of 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, the
obligation to repurchase and/or indemnity for losses associated with the LOANS, the
claims and causes of action that were or could have been asserted relating to the
obligation to repurchase and/or indemnify for losses associated with the LOANS, or any
facts or circumstances related to the obligation to repurchase and/or indemnify for losses
associated with the LOANS.

1.21 Notwithstanding any other provision in this Settlement Agreement, the
FDIC does not-release, and expressly preserves filly and te the sane 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 purporlto waive, or intent 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 for any federal judicial
district. In addition, the FDIC 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, of seg,, if appropriate.

1.22 Notwithstanding any other provision in this Settlement Agreement, the
FDIC does not release, and expressly preserves fully and fo the same extent as ifthe
Settlement Agreement had not been executed any claims against TI FINANCIAL arising
out of existing or failed financial institutions other than INDYMAC. In addition, the
_ FDIC does not release the debt obligation(s) arising from any loan(s), ifany, made by

INDYMAC to employees, members, partners, joint venturers, independent contractors,

attorieys, investors, successors, assigns, representatives, officers, directors or
shareholders of T] FINANCIAL.

SETTLEMENT AGREEMENT & MUTUAL RELEASE
Page 3 of 8


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.

For: The Federal Deposit Insurance Bor: ‘f.J. Financial, Inc.
Corporation as Receiver for (x6)
IndyMac Bank, FSB

By; By:

Name: Name: “Ce en 1. Lee

Title: Tithe: HES

Date: Date: \y { OM bao PO

For: Tien-I Lee

(b)(6)

By fp _
Date: uf a { 20/0

SETTLEMENT AGREEMENT & MUTUAL RELEASE.
Page 8 of $


Ld4 Within five (5) business days of the FDIC’s counsel's teceipt of the fully
executed Settlement Agreement, the FDIC’s counsel shall file a Stipulation for Dismissal
of the Action With Prejudice.

445 Bach 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 the court retain
jurisdiction over the Parties to enforce this Settlement Agreement and, ifnecessary, the
Judgment (Pursuant to Stipulation).

1.16 The Parties shall bear their own costs and aiforneys' fees incurred in the
Action.

RELEASE

117 Unknown Claims. Each Party acknowledges that this Settlement
Agreement applies to all claims for injuries, damages, or losses of any type or nature
(whether those injuries, damages, or losses are known or unknown, foreseen or
unforeseen, patent or latent) which that Party may have against the other Party arising
irom the obligation to repurchase and/or indemnify for losses associated with the
LOANS. Each Party hereby expressly waives application of California Civd Cade §1542
and any other similar statute or rule with respect to the LOANS as provided for herein.

1.18 Each Party certifies that they have read and understood the following
provisions of California Civil Code $1542, whieh states in pertinent part as follows:

“§ 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
SETTLEMENT WITH THE DEBTOR.”

1.19 Each Party understands and acknowledges that the significance and
consequence of its waiver of California Civil Code $1542 is that even if any Party should
eventually suffer additional damages arising aut of the obligation to repurchase and/or
indemnify for losses associated with the LOANS, the claims and causes of action that
were or could have been asserted relating to the obligation to the repurchase and/or
indemnify for losses associated with the LOANS, or any facts or circumstances related to
the obligation to repurchase and/or indemnify for losses associated. with the LOANS, that
Party will not be able to make any claim against the other Party for those damages.
Furthermore, each Party acknowledges that it consciously intends these consequences
even as to claimis for damages that may exist as of the date of this release but which that

SETTLEMENT AGREEMENT & MUTUAL RELEASE
Page 4 of 8


1.23 Conditions of Exeeution, Each Party acknowledges and watrants that its
execution of this Settlement Agreement is free and voluntary.

124 No Admission. It is agreed that no Party hereto admits liability or
wrongdoing of any nature, and that this Settlement Agreement is made as a compromise
of disputed claims.

1.28 Fair Meaning. The Parties hereto further agree that the langnage 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.

126 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 io the jurisdiction of said Courts and further
agree that any and all matters of dispute shall be adjudicated, governed and controlled
under California law.

1,27 Attorneys’ Fees. Should any action be commenced to enforce, interpret,
or sevk damages, injunctive relief, or specific performance for violation of this Settlement
Agreement, 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, including any appeal. :

128 Severability. The Parties hereto agree that if any provision of this
Settlement Agreement is declared by any court to be illegal 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,

1.29 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.

1.30 Review and Understanding. The Parties have entered into this
Settlement Agreement voluntarily, having fully read and fully understanding the meaning
and effect of all of its terms and provistons, and fully understanding its and their costs -
and risks, Each of the Parties has. consulted with legal counsel concerning this Settlement
Agreement and 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 otlier 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.

SETTLEMENT AGREEMENT & MUTUAL RELEASE
Page 6 of 8


SETTLEMENT AGREEMENT AND MUTUAL RE

THIS SETTLEMENT AGREEMENT AND MUTUAL RELEASE
(“Settlement Agreement") is entered into and made effective as of the 12thday of
October, 2019 (“Effective Date”), by and between the Federal Deposit Insurance
Corporation as Receiver for IndyMac Bank, FSB (“FDIC”), TJ. Financial, Inc. (TT
FINANCIAL”), and Tien-I Lee (“LEE”), The FDIC, TJ FINANCIAL, and LEE may
hereinafter be referred to individually as a “Party” or collectively as the “Parties.”

RECITALS

L.1 On or abont April 13, 2004, IndyMac Bank, F:S.B. CINDYMAC”) and TY
FINANCIAL entered into a business relationship governed by a Seller Contract and e-
MITSTM User Agreement (hereinafter "Contract"),

12° TJ FINANCIAL sold and/or delivered mortgage loans to INDYMAC
pursuant fe the Contract. A dispute has arisen between the Parties with respect to
outstanding demands for repurchase and/or indemnity.

. 1.3 On or about April 22, 2010, the FDIC filed a lawsuit entitled FEDERAL
DEPOSIT INSURANCE CORPORATION as Receiver for INDYMAC BANK, FSB v. Tol.
FINANCIAL, INC., a California Corporation in the United States District Court, Central.
District of California, Case No. CV 10-3033 (hereinafter “Action") seeking damages
arising from certain mortgage loans. Specifically, the FDIC claims that TJ] FINANCIAL
breached the Contract by refusing to repurchase and/or indemnify for losses sustained on.
certain. mortgage loans after receiving demands to do so. In addition, the FDIC asserted
claims of negligence and negligent hiring/supervision against LEE as the broker of record
of TJ FINANCIAL,

1.4 Without admitting liability, the Parties desire to and have agreed to settle
all repurchase and indemmification claims relating to all mortgage loans which were ever
sald directly by TJ FINANCIAL to INDYMAC wiicther or not identified in the Action
(collectively, the “LOANS”) upon the terms and conditions hereinafter set forth.

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 ta be legally bound,
agree as follows: :

SEYTLEMENT AGREEMENT & MUTUAL RELEASE
Page 1 of 8


IN WITNESS WHEREOE, 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 Setilement Agreement.

For: The Federal Deposit Insurance For: T.I. Finanelal, Ine.
Corporation as Receiver for

IndyMac Bank, FSB
(bX6)
BY By:
Name: —leeb ‘Des fa Name:
Title: _ Cavased Title:
Date: _ Mev. J2, £012 Date:

For: Tien-I Lee

By:

Date:

JENT & MUTUAL RELEASE
ge S0fS

SRITLEMENT AGRE


1.5 Recitals. The Recitals set forth above are incorporated into the body of
this Setdement Agrcement as though fully set forth herein,

1.6 Payment of the Settlement Funds. TJ FINANCIAL shall pay the total
gum of $350,000 (Three Hundred Fifty Thousand Dollars) (the “Settlement Funds”), The
Settlement Funds shall be payable as follows:

a The sum of $100,000 (One Hundred Thousand Dollars) shall be
paid by to later than November 19, 2010.

b. Quarterly payments of $50,060 (Fifty Thousand Dollars) shall be
paid on or before each of the following dates:

@ January 15, 2011;
(i) Apri 15, 2011;
(it) Tuly 15, 2011;
(iv) October 15, 2011;

)—- December 31, 2011.

©)6) c. Payments shall be made by wire transfer made payable to
. “Mortgage Recovery Law Group Trust Account,” Account Number:
(oa) a Number: E—=] Reference: ‘TY Financial
element,

1.7 Concurrently with the signing and delivery of this Settlement Agreement,
TLFINANCIAL shall execute a Stipulation for Entry of Judgment in the amount of
$340,000 (Three Hundred Fifty Thousand Dollars) in the form attached hereto as Exhibit
1. The Stipulation for Bitry of Judgment incorporates by reference the Judgment
(Pursuant to Stipulation), attached to the Stipulation as Exhibit A. Both the Stipulation
and Judgment are incorporated by reference herein and their terms are made a part of this
Settlement Agreement.

18° In the event TJ FINANCIAL defaults by failing to make-a timely payment
as set forth in this Settlement Agreement, the FDIC shall give notice of the default and
notice of its intent to.enter Judgment (Pursuant to Stipulation). via mail, email or fax to
John Tate, Esq, Davis Wright Tremaine, LLP, 865 8. Figueroa, Suite 2400, Los Angeles;

(x6) CA. 90017, B: (213).633-6899, id TY FINANCIAL at 181 W.
Huntington Drive, Suite 108, Monrovia, CA GIOTS, F: (626) 599-8884,

©)6) es such other address as may be provided in writing to counsel
for the FDIC.

SETTLEMENT AGREBMENT & MUTUAL RELEASE
Page 2 of §


19 TJ Financial shall have seven (7) business days front date of the notice to
cure the default. In the event TJ Financial fails to cure the default within seven (7)
business days, the remaining balance of the Settlement Funds, joss credit for any
payments made, will be immediately due and payable, The FDIC shall retain all
consideration it received, and it may, in its sole discretion, seek to enter the Indgment
(Pursuant te Stipulation) against TT FINANCIAL, and enforce said Judgment against TY
FINANCIAL. Judgment may be entered by ex parte application (without testimony or
trial and TY FINANCIAL waives the right to a court and/or jury trial) with aotice given to
TJ FINANCIAL as set forth above, The PDIC shall be entitled to collect all expenses
jncurred in pursuing the remedies provided in this paragraph, inolnding, but not limited
to, attorneys’ fees and costs incurred in collecting all sums owing.

1.10 LEE personally guarantees payment of the Settlement Funds. LEE agrees
to pay and perform in accordaice with the terms of the indebtedness without requiring
the FDIC to exercise, pursue, or enforce any right or remedy the FDIC has against TJ
FINANCIAL first.

1.11 Concurrently with the signing and delivery of this Settlement Agreement,
LEE shall execute a Stipulation for Entry of Judgment in the amount of $350,000 (Three
Hundred Fifty Thousand Dollars) 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. Both the Stipulation and Judgment
are incorporated by reference hereln and their terms are made a part of this Settlement

Agreement,

1.12 ‘In the event TJ FINANCIAL defaults by failing to make a timely payment
as set forth in this Settlement Agreement, the FDIC shall give written notice of the
default to LEE by sending notice to John Tate, Esq. Davis Wright Tremaine, LLP, 865 8.
Figueroa, Suite 2400, Los Angeles, CA 90017, F: (213) 633-6899,

143 LEE shall have twelve (12) business days from date of the notice to cure
the default. In the event LEE fails to cure the default within twelve (12) business. days,
the remaining balance of the Settlement Funds, less credit for any payments made, will be
immediately due and payable. The FDIC may, in its sole discretion, seek to enter the
Jndgment (Pursuant to Stipulation) against LEE, and enforce said Judgment against LEE.
Judgment may-be entered by ex parte application (without testimony or trial and LEE
waives the right to a court and/or jury trial) with notice given to LEE as set forth above.
The FDIC shall be entitled to collect all expenses incurred in pursuing the remedies
provided in this paragraph, including, but not limited to, attorneys’ fees aid costs
incurred in collecting all sums owing.

SETTLEMENT AGRBEMENT & MUTUAL RELEASE
Page 3 of 8

(b}(6)