(b)(1) 

SETTLEMENT AGREEMENT AND RELEASE 

This Settlement Agreement and Release ("Agreement") is made and entered into by and 

between The Federal Deposit Insurance Corporation, as receiver for NetBank, F.S.B., ("FDIC" 

or "Plaintiff’), on the one hand and First American Title Insurance Company ("FATIC" or 

"Defendant") on the other hand. The FDIC and FATIC are referred to collectively as the 

"Parties." 

RECITALS 

A. WHEREAS, the FDIC filed a Complaint against FATIC and others entitled 

Federal Deposit Insurance Corporation as Receiver of Ne/Bank, F.S.B. v. Golden Key Really 

& Mortgage Banker, Inc., Case3:10-cv-04285-WA, in United States District Court, Northern 

District of California, (the "Action"). 

B. WHEREAS, the Parties desire to resolve the FDIC’s claims against FATIC, and 

agree as follows: 

AGREEMENT AND MUTUAL RELEASE 

NOW, THEREFORE, in consideration of the undertakings contained in this agreement, 

and other good, valuable and sufficient consideration, the sufficiency of which is hereby 

acknowledged, the Parties agree as follows: 

1. Preamble. Recitals and Exhibits. The foregoing preamble and recitals are true and 

correct and are integral parts of this agreement. 

2. Settlement Payment by FATIC to FDIC. No later than thirty (30) business days 

following full execution of this Agreement, Defendant FATIC shall pay Plaintiff the amount of 

One Hundred Thousand Dollars and No Cents ($100,000.00). This settlement payment shall be 

made by sending a check to "Rudow Law Group, LLC," Reference: FATIC Settlement. The 

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payee should be the FDIC as Receiver for NetBank, FSB. The Parties agree that timely receipt 

of the Settlement Payment is an essential term of this Agreement, and a condition to the 

effectiveness of this Agreement. 

3. Dismissal of the Action. Together with the execution of this Agreement, counsel 

for Plaintiff and Defendant shall execute a Stipulation of Dismissal of the Action against FATIC, 

with prejudice. Upon the receipt and clearing of the Settlement Payment, so that good and clear 

funds in the amount agreed to herein are actually received by Plaintiff, counsel for Plaintiff shall 

file the executed Stipulation of Dismissal with the Court. 

4. Court to Retain Jurisdiction. The Parties agree that the Court shall have 

continuing jurisdiction to enforce the provisions of this Agreement to the fullest extent permitted 

by law. 

5. Release by Plaintiff. The FDIC hereby releases and forever discharges FATIC 

and its current and former officers, directors, employees, agents, policy issuing agents (including 

but not limited to Alliance Title Company, its current, former and future agents, employees and 

representatives), representatives, shareholders, sureties, bonding companies, insurers, attorneys, 

subsidiaries, predecessors, related companies, parent companies, successors, assigns and 

affiliates, of and from any and all claims, and demands of every kind and nature, in law, equity 

or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, for 

damages actual and consequential, attorneys’ fees and costs, past, present and future, arising out 

of the claims or causes of action set forth in the Action, except as expressly reserved in 

Paragraph 6, below. Nothing herein shall be deemed a release of Golden Key Realty & Mortgage 

Banker, Inc. or Samuel Gbilia. 

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6. Express Reservations from Release. Notwithstanding any other provision 

contained herein, by this Agreement, the Parties do not release, and expressly preserve fully and 

to the same extent as if the Agreement had not been executed (a) any claims or causes of action 

that do not arise from or relate to the facts, occurrences and transactions alleged in the Action, 

(b) any claims brought on behalf of another failed institution or another governmental entity or 

any defenses to such claims, or (c) any claims relating to the facts, occurrences and transactions 

alleged in the Action against any other person or entity not released in Paragraph 5, above, and 

Paragraph 7, below. This Agreement does not waive or release any claim relating to or arising 

from any loan other than the loans at issue in the Action. In addition, this Agreement does not 

purport to waive, nor is it intended to waive, any claims which could be brought by the United 

States through either the Department of Justice, the United States Attorney’s Office, or any other 

federal department or agency, for violation of any federal criminal statutes, including any rights, 

if appropriate, to court ordered restitution pursuant to the relevant provisions of the Victim and 

Witness Protection Act, 18 U.S.C. § 3663, et seq., nor any defenses to such claims. 

7. Release by Defendant. Defendant hereby releases and forever discharges Plaintiff 

and its current and former officers, directors, employees, agents, insurers, attorneys, subsidiaries, 

predecessors, related companies, parent companies, successors, assigns, and affiliates, of and 

from any and all claims, and demands of every kind and nature, in law, equity, or otherwise, 

known and unknown, suspected and unsuspected, disclosed and undisclosed, for damages actual 

and consequential, attorneys’ fees and costs, past, present and future, arising out of the claims or 

causes of action set forth in the Action, except as expressly reserved in Paragraph 6, above. 

Nothing herein shall be deemed a release of Golden Key Realty & Mortgage Banker, Inc. or 

Samuel Gbilia. 
7.A. Waiver of Civil Code Section 1542 With respect to the matters herein released, 

the Parties expressly intend to relinquish all claims, whether or not now known, and expressly 

waive any and all rights and benefits conferred on them by the provisions of Section 1542 of the 

Civil Code of the State of California, which reads: 

A general release does not extend to claims which the creditor does not know or suspects 

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. 

The Parties understand and acknowledge the significance and consequences of such waiver of 

the provisions of Section 1542. 

8. Consideration. The consideration received in connection with this Agreement is 

fair, adequate and substantial and consists only of the terms set forth in this Agreement. 

9. Modifications. This Agreement may not be amended, canceled, revoked or 

otherwise modified except by written agreement subscribed by all of the Parties to be charged 

with such modification. 

10. Agreement Binding on Successors and Assigns. This Agreement shall be binding 

upon, and shall inure to the benefit of, the Parties hereto and their respective officers, directors, 

joint venturers, partners, employees, agents, servants, heirs, administrators, executors, 

successors, representatives and assigns. 

11. Applicable Law. This Agreement has been negotiated and exchanged in the State 

of California. As such, this Agreement and all matters relating thereto shall be governed by the 

laws of the State of California without regard to its principles of conflicts of law. In addition, in 

the event of any disputes arising between the Parties out of this Agreement, the Parties agree that 

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the exclusive venue in which all disputes shall be resolved shall be by way of an action filed in 

the United States District Court for the District of California. 

12. Execution and Delivery Required - Effective Date. This instrument shall not be 

considered to be the Agreement (defined above) or an enforceable contract, nor shall it create 

any obligation whatsoever on the part of any or all of the Parties, nor shall it or any of its terms 

constitute an undertaking by any of the Parties unless and until the date on which counterparts of 

it have been signed by and exchanged amongst all Parties (via facsimile, e-mail or otherwise) 

(the "Effective Date"). Until the Effective Date, any Party who may already have signed and 

exchanged one or more counterparts of this agreement with other Parties shall have the right to 

revoke such signature. On the Effective Date, this instrument shall become the Agreement and 

shall become a binding and enforceable contract. 

13. Counterparts. This Agreement may be executed in one or more counterparts, each 

of which when executed and delivered shall be an original, and all of which when executed shall 

constitute one and the same instrument. Signatures on this Agreement, or any counterpart of this 

Agreement, transmitted by facsimile machine or electronic mail in .pdf format shall have the 

same force and effect as original signatures. 

14. Construction. Each of the masculine, feminine and neuter genders shall include 

the others. The singular shall include the plural and vice-versa. 

15. Severability. In the event any provision of this Agreement shall be held to be 

void, voidable or unenforceable, the remaining provisions shall remain in full force and effect to 

the fullest extent permitted under the law. 
16. Warranty of Authority. Each Party whose signature is affixed hereto in a 

representative capacity represents and warrants that he or she is authorized to execute this 

Agreement on behalf of and to bind the entity on whose behalf his or her signature is affixed and 

that he or she is acting in the scope of such agency and authority. Each Party specifically 

represents and warrants that no signatures other than those made on this Agreement are 

necessary to bind the Party to all of the obligations imposed by the Agreement and that all 

corporate and/or governmental approvals necessary to bind the Party to this Agreement have 

been received. The Parties have not assigned or transferred any of their claims being released 

herein and have the standing and authority to release said claims. 

17. Attorneys’ Fees and Costs. Plaintiff and Defendant each agree to pay their own 

costs, attorneys’ fees and expenses incurred in connection with the Action. 

18. Captions and Headings. The captions, paragraph numbers and paragraph 

headings appearing in this Agreement are inserted only as a matter of convenience and in no way 

define, limit, construe or describe the scope or intent of this agreement, nor in any way affect this 

Agreement. 

19. Notices. Any notice required under this Agreement shall be in writing and shall 

be sent via both e-mail and either by (i) hand delivery or certified or registered mail, postage 

prepaid, with return receipt requested, or (ii) fax, with a conformed copy by US Mail, postage 

prepaid, and with such writing to be addressed to the Parties as follows: 

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(b)(4)(b)(6) 

Person To Receive Notice Notification Information 

Defendant: Jeffrey H. Lowenthal 

Edward Egan Smith 

Steyer Lowenthal Boodrookas 

Alvarez & Smith LLP 

1 California Street, Suite 300 

SanFranci-r CA CA111 

Telephone: 

Facsimile: 

Plaintiff: William Rudow, Esq. 

Rudow Law Group, LLC 

5603 Newbury Street 

Baltimore SIT) 2 1909 

ep one 

_aiiL 

Facsirnglej 

IIIIIIj 

(b)(4)(b)(6) 

(b)(4)(b)(6) 

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

The above addresses may be changed by any Party as to such Party by providing the other 

Parties notice of any address change in the same manner as is provided above, and which change 

shall be effective as to any Party upon receipt of written notice from the other Party. In the event 

that written notice, demand, or request is made as provided in this paragraph, that writing shall 

be deemed to have been received by the Party to whom it was addressed on the earliest of (i) the 

date that the notice was hand delivered, (ii) the date the notice was sent via facsimile (so long as 

a facsimile transmittal confirmation sheet is contemporaneously generated by the facsimile 

machine from which the transmission occurred), or (iii) three days after properly addressed 

notice was deposited with the U.S. Postal Service, applicable postage prepaid. 

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20. Remedies. All Parties shall be entitled to all remedies available at law or in 

equity for any violation of this Agreement, including, but not limited to the remedy of specific 

performance. 

21. Further Assurances. The Parties shall execute such other documents as may be 

reasonably necessary to carry out the terms and conditions of this Agreement. 

22. Survival. All warranties, representations, covenants, and agreements set forth 

herein shall survive the Effective Date. 

23. Compliance Dates. In the event that any date specified in this Agreement shall be 

on a Saturday, Sunday, or a nationally-declared holiday, then the date so specified shall be 

deemed to be the next business day following such date, and compliance by such business day 

hereunder shall not be deemed a default by either of the Parties under this Agreement. 

24. Waiver. The waiver by one Party of the performance of any covenant or 

condition herein shall not invalidate this Agreement, nor shall it be considered to be a waiver by 

such Party of any other covenant or condition or of any later instance of the previously waived 

covenant or condition. The waiver by any Parties of the time for performing any act shall not 

constitute a waiver at the time for performing any other act or an identical act required to be 

performed at a later time. 

25. Jury Trial Waiver. The Parties hereby waive any and all rights that they may 

otherwise have to a trial by jury in any action, proceeding, claim, counterclaim or third party 

complaint, whether in contract or tort, at law or in equity, arising out of or in any way related to 

this Agreement. 

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26. Entire Agreement. This Agreement contains the complete agreement of the 

Parties concerning the subjects of this agreement and supersedes all prior drafts of this Agreement 

and all other prior agreements, promises, acknowledgements, representations and warranties, if 

any, that may have been made between or among the Parties concerning that subject of this 

agreement, whether in connection with the negotiation of this agreement or otherwise. This 

agreement has been the product of negotiation. The Parties have had the opportunity to obtain 

independent advice from counsel. Prior draft documents were prepared, exchanged and 

discussed by some or all of the Parties before finally reaching and entering into this agreement. 

In any number of instances, words used in prior drafts may have been changed or removed from 

the language ultimately agreed to in this Agreement. In the event of a dispute over the meaning 

of any of the provisions or requirements of this Agreement, the fact that other words may have 

been used or deleted from earlier draft documents or provisions in such draft documents that 

were modified before being included herein, shall not be used to aid in the construction of the 

meaning and legal effect of this Agreement. This Agreement may not be modified or changed 

except by a written instrument executed by all of the Parties and no rights under it may be 

waived except by a writing signed by the waiving Party. No promises, representations, 

warranties, agreements or other understandings exist between the parties with respect to the 

subject matter of this agreement, and this agreement supersedes and discharges any and all prior 

promises, acknowledgements, representations, warranties, agreements or other understandings 

that existed or may have existed between the Parties. 

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27. No Admission of Liability. The parties understand and acknowledge that this 

Settlement Agreement Constitutes a settlement of disputed claims and is not an admission of 

liability by any party. 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

XTU TDA -1-dY Pfl (b)(6) 

Dated: H 

Rbert J. LieHenel’Jr(Esq. 

H

Authorized on behalf of The Federal Deposit 

Insurance Corporation, as receiver for NetBank, 

F.S.B. 

FIRST AMERICAN TITLE INSURANCE 

COMPANY 

Dated: 2012 

Georgina Injayan 

Authorized on behalf of FATIC 

APPROVED AS TO FORM: 

Dated: .2012 RUDOW LAW GROUP, LLC 

By: 

William Rudow Law Group, LLC 

Attorneys for Plaintiff 

The Federal Deposit Insurance Corporation, as 

Receiver for NetBank, F.S.B. 

Dated: 2012 STEYER, LOWENTHIAL, BOODROOKAS, 

ALVAREZ & SMITH LLP 

By: 

Edward Egan Smith 

Attorneys for Defendant 

First American Title Insurance Company 

10 
27. No Admission of Liability. The parties understand and acknowledge that this 

Settlement Agreement Constitutes a settlement of disputed claims and is not an admission of 

liability by any party. 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

NETBANK, FSB (b)(6) 

Dated: &Alz__;2012 -

o rt J. De n?e1r1 Isq. -

Authorized on behalf of The Federal Deposit 

Insurance Corporation, as receiver for NetBank, 

F.S.B. 

FIRST AMERICAN TITLE INSURANCE 

COMPANY 

Dated: 12012 By: 

Georgina Injayan 

Authorized on behalf of FATIC 

APPROVED AS TO FORM 

Dated: , 2012 RUDOW LAW GROUPJ LLC 

L (b)(6) 

By: 

William Rudow Law Group, LLC 

Attorneys for Plaintiff 

The Federal Deposit Insurance Corporation, as 

Receiver for NetBank, F.S.B. 

Dated: ,2012 STEYER, LOWENTHAL, BOODROOKAS, 

ALVAREZ & SMITH LLP 

By: 

Edward Egan Smith 

Attorneys for Defendant 

First American Title Insurance Company 

10 
	 	

	 	

27. No Admission of Liability. The parties understand and acknowledge that this 

Settlement Agreement Constitutes a settlement of disputed claims and is not an admission of 

liability by any party. 

Dated: .2012 

(b)(6) 

Dated: .2012 

APPROVED AS To FORM: 

Dated: 2012 

Dated; ,2012 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

NETBANK FSB 

By: 

Robert J. DeHenzel, Jr, Esq. 

Authorized on behalf of The Federal Deposit 

Insurance Corporation, as receiver for NetBank, 

F.S.B. 

FIRST AMERICAN TITLE INSURANCE 

-

- By.L 

Georgina lrjay4n 

Authorized’on 6ehalfofFATIC 

RUDOW LAW GROUP, LLC 

By: 

William Rudow Law Group, LLC 

Attorneys for Plaintiff 

The Federal Deposit Insurance Corporation, as 

Receiver for NetBank, F.S.B. 

STEYER, LOWENTHAL, BOODROOKAS, 

ALVAREZ & SMITH LLP 

By: 

Edward Egan Smith 

Attorneys for Defendant 

First American Title Insurance Company 

10 
27. No Admission of Liability. The parties understand and acknowledge that this 

Settlement Agreement Constitutes a settlement of disputed claims and is not an admission of 

liability by any party. 

Dated: ,2012 

Dated: ,2012 

APPROVED AS TO FORM: 

Dated: ,2012 

Dated: ’ Ill ,2012 

(b)(6) 

FEDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

NETBANK, PSB 

By: 

Robert J. DeHenzel, Jr, Esq. 

Authorized on behalf of The Federal Deposit 

Insurance Corporation, as receiver for NetBank, 

F.S.B. 

FIRST AMERICAN TITLE INSURANCE 

COMPANY 

By: 

Georgina Injayan 

Authorized on behalf of FATIC 

RUDOW LAW GROUP, LLC 

By: 

William Rudow Law Group, LLC 

Attorneys for Plaintiff 

The Federal Deposit Insurance Corporation, as 

Receiver for NetBank, F.S.B. 

STEYER, ODROOKAS, 

AL I LP 

Edward Egan Smith 

Attorneys for Defendant 

First American Title Insurance Company 

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