SEn:LENENT AGREEMENT. AND MUTUAL RELEA§ES 

This Settlement Agreement and Mutual ~leases ("Agreement11) ~e made this /1 j( 

Day of ~ / 2013 by, between and antong the undersigned panies: the Plaintiff, 

Federal Deposit Insurance Corporation, solely in its capacity as receiver :for Amtrust Bank 

('~FPIC~R~) (which does not include the Federal Deposit Insurance Corporation$ generally or in 

any ether capacity~ nor does it indude agencies and departments of the United States 

government, including, without limitation, the United States Department of Justice) and the 

defendant Nichola.-; Pellegrini (which includes the Law Office of Nichol83 Pellegrllri) 

\'Pellegrini") parties in the case captioned .FDIC as Receiver for Amtrust Bank v. Malik, et.al. 

Case NO. 1:09-CV ..()4805 ill the United States District Court for the Eastern District of New 

York ('The Litigation>'). 

RECITALS 

WHEREAS, In November 2009: Amt:rust Bank ("Amtrustn) lnitiated The Litigation 

against its ~losing agent, several of its mortgage brokers, an.d other individual$ and eQtities 

alleged to be involved io a purported mortgage fraud scheme; 

WHEREAS, on Oecember_4, 2009> AmTrast \\'aS clos~d by the Office of Thrift 

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

was appointed receiver. ln accordance with 12 U.S.C. § 1821(d), the FDICMR succeeded to all 

rights, titles, J?Owers, and privileges of the :Bank, including those 1Nitb respect to its assets and all 

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

Litigation; 

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WHEREAS. Pelle&Dni denies the allegations asserted against him The Litigation and contends· 

that he has committed no wrongdoing and is fully prepared to successfully defend The Litigation ; and 

NOW, TIIEREFORE, in consideration of the promises, undertalcings and releases stated herein, 

the sufficiency of which consideration is hereby acknowledged, the undersigned Parties agree, each with 

each other, as follows: 

Section 1: Payment to tl}e FDIC:RA. Pellegrini and/or his insurer agree to pay the FDIC-R the sum of Fifty Thousand Dollars 

(~50,000.00) (the ~·settlement Funds") to be paid witlrin 30 days ofboih ihe execution of this Agreement 

and the Stipulation of Dismissal by each of the undersigned parties. 

B. As provided in Section lA. above, Pellegrini or his insurer shall deliver the Settlement 

Funds in a check made payable to FDIC as Receiver for AmTrust Bank, account number I ························ ...... L{b).(.4) 

by mailing it to the FDIC, as Receiver for AmTrustBank: at P.O. Box 971774, Dallas, TX 75397-1774; or 

for overnight deliver to JPMorgan Chase (TXl-0006), Attn: FDIC Receiversltip Lock Box. j --l -{b.){4) 

14800 Frye Rd., 2nd Floor, Fort'Worth, 1X 76155. 

C. Without 'wiving any other lights that FDIC-R may have, in the event that the Settlement 

Funds, , are not paid to the FDIC-R by Pellegrini and/or his insurer within 30 days of the execution of 

both this Agreement and the Stipulation of DismissaJ by all partie.s, then the FDICwR shall have the right5 

in its sole discretion, prior to the delivery of any delinquent payment by Pellegrini and/or his insurer to 

declare this Agreement null and void, extend this Agreement for the period of time until the FDlC-R 

receives all of the Settlement Funds and/or enforce this Agreement. The Parties fur..ber acknowledge and 

consent to the jurisdiction of Magistrate Judge Azrack for enforcement of thls Agreement in connection 

''rith her continuing role overseeing settlement negotiations related to The Litigation. 

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Sedion 2: Stipulations and Dismis.'ialiUpon execution of this Agreement by each of rhe undersigned Parties) the FDlC-R shall 

dismiss with prejudice all of its clalms in The Litigation against Pellegrilrl. A Stipulation of 

Dismissal as to these claims shall be prepared and e:recuted by the FDIC-R and Pellegrini. 

Within thirty (30) days ofPeUegrini's receipt of the executed Stipulation of Discontinuance of 

the litigation with P.cejudice, l'eJlegrini and/or his insurer shall deliver t.be Settlement Funds in 

. . the manner described in Section lB of this Agreement. Thereafter, Pellegrini shall file the 

Stipulation of Dismissal, provided1 however1 that Pellegrini shall defe;r filing the Stipulation of 

Dismissal and agree not to :fllc.such until after the Pellegrini and/or his.insure.r: has delivered the • ,·· ••• ,. < 

Settlement Funds tO the FDIC-R. 

Section 3: Mutual Releases. 

A Release of Pellegrini by the FDIC-R. 

Effective upon payment of the Settlement funds the FDIC-R .hereby releases and 

discharges Pellegrini, his insurers, representatives, successors, assigns and attorneys, from any 

and all claims, demands; obligations, damages1 actions~ causes ofaction, 9irect or indirect, in law 

or in equity1 belonging to the FDIC-R that were asserted in The Litigation. 

B. Release of the FDICR by Pellegrini. 

Effective simultaneously with the release in Sectjon 3A above, Pellegrini on his own 

behalf, and on behalf of his insurers, representatives, successors. assigns and attorneys hereby 

.releases and discharges the FDIC-R from any and all claitns, demands, obligations, damages, 

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

· The Litigatio~ including _but not limited to any rights of subrogation. 

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C. Express Reservation of Releases By The FDIC-R. 

1. Notwithstanding any other provision1 by this Agreement~ the .FDIC-R does not 

release and expressly preserves fully and to the same e~tent as if the Agre~ment had not been 

executed. any rights, claim~ or cau...~ of action: 

' i. Against any other partJ: in the Litigation not expressly released by this 

Agreement; and 

ii. Against Pellegrini which are not expressly released in Section 3A, above. 

Section 4: Rttpresentatiops and Acknowledgments 

A. No Adm~i® of !:iability. · The undersigned Parties each acknowledge and agree 

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

claims .and that this Agreement is not an admission or e"idence of any liability of any of tb,em 

regarding any claim .nor is it to be construed as such .. 

B. Execution in Countetparts. This Agreement may 'be executed in counterparts 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 Ci.eCution and delivery, shaU be deemed a complete originat 

binding the Party or Parties subscribed thereto upon the e~ecution by all Paxties 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 hav.e the full power ~d authority to bind such Party to each. and every provision of this 

Agreement. This A-greement shall be binding upon and inure to the benefit of tbe undersigned 

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Parties and their x-espective heirs, executors, administratorS> representatives, successors, assigns 

and attorneys. 

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

according to applicable federal Jaw, or in its abse.11ce.l the laws of the State of New York. 

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

a.gteement and llJlderstanding between and among the undexsigned Parties concerning the matters 

set forth herein. This Agreement may not be amended or modified ex.cept by another written 

instrument signed by the parties to be bound ~reby, or by their respective authomed attorneys 

or other representatives. 

F. Advice of CQunsel. Eacb Paxty 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 ~at Party by his or her counseL 

E. Authority. Each party expressly represents that they havo the autllority to enter 

into this Agreement. 

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IN WITNESS WHEREOF, the Parties b.ereto have caused this Agreement to be e4e.;:uted 

by each of them or their duly au.thorized representative on the dates hereina~er subscribed. · 

Federal Deposit Insurance Corporation, as 

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