(b)(2) 

Ll pl..s 1'-'Jv-/Page 147 

D'f f / /Y)Dr..j:J"-.5~ fr~~ 

SETTLEMENT AGREEMENT AND:.MUT.UAL RELEASE 

TiUSSET.l'LIIMENT AGREI!iMENT ANDl\IJ!TUAL~ p {"Settlement Agretmlent") is entered -intO and~nwk. eff~vc.as of:Ure ~ ~ day ofJwili, 

"2009 ('~ffeoti.V:c Date'), eyand betw¢.en$e F.~ Q~pQ~t In~ur8Ileo·Co~ration1lS 

:Receiver'of.IildyMac Fed~ al!llk. FSB ~a. Jnayl'dac Blink, FSB.(''FD!C"}:aod South 

'Pacific Ffuane~ Ccn;potati!>n ("~Ql;JTH PACIFIC''). TheJDiC,~."$.0U'l'fJ.PAGIFIC 

lD.!lY hereina.fter"be J~~ to intlividUally .as a '1>artf; or CPU~vely ~-the "r~es''· 

;RECITALS 

1.1 SOU'IHPACIFIC" sold, and/or dClivcrtd mort~ge.lo~.tQ IAilyMac Bank, 

~B. pmsuant to various written agr«iments. A ~pute bll{i arlSen"'between'tbe Parties · 

with :respect to :outstandin~-de~.for.@~~bAA~ ~or indemnity; Specifically, 

lildy:Mic Bank. FSB ~d ItidyMac l'~eral Bj:lnk,.fSB made:.dciiiands to. SOtrnt 

PAC:IFIC for repurchase ~6/or ~e~cation·base(h~p6n a finding of'a b=qh t1ftb:o 

repres:entations and wan-ant!es onn &rly Payment D¢&uit.JIS s!,rt.fortb. jn ~written 

&grectllents. 

1.2 Without admininglilihility,.thePIII'ties cie.sircto ~d. have agreed' to settle 

an repurchase..and iildemziification c~rel~t:blg to.11J,e mo~age'ldans sold directly by· 

:SOUTH PACIFIC to IndyMac: l;la,nk; F$B· (tb~ ·~LOANS'•) \U)On the tenns and conditions 

hereinafter set forth. 

AGREEMENT 

NOW, 'fl~Em;FQ.RJC;, in consideration ofthc.mutual·cove.nantS atld promises set 

~ hereUJ, and for other good and valuable eonside~n,'tbc: ~~pt ~d sUfficiency .of 

-which-are hereby acknowledgtd by the PartieS; the PW.~.in~~to be legally. bound, 

·agree as follows: 

1.3 Redtills. The-Rec~ set (Qtih ab.ove·J~R·incotporated into the body of 

this Settlem.cmt ~~t as thw Mly ~et forth iicrdn. . 

1.4 .PaymeQt ~r ihe·s~ttlementAgteemeat. SbOTHPAOWIC ~- p~y the 

total :;um of $180,000~00 (one hiiildted e~ty ~<1 doUBtS) (the '·'SettleQlCilt.filnds''). 

Payment of the Settlement Funds sball be iWI4ri QfoU~: · I 

.Beginning July l, 2009, tbe:sum.ofSlO~OQO:OO(ten.thous~dollara)perlllOiith 

shall be made for·eighteen (18) ~~ve. IQ.onths until the sum of$180,000.00 

(one hllhdred ~~ghty thousapd dolJ~s) is.;pldd .iil rutl. 

SETn.EMBNTAGRBEMENT& MUTUf.L,~ 

l'~~&c 1 of6 

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

(b)(4) 

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

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

Page 148 

Payments are· due or,t$~ 1

51 day oftb.e·nio~.Sball be-made by wire transfe~in!t® 

navable to "MQngage Recov. . :f. Law:GtouJ Trust Account," AccountN~W. I · ..jR.outing NuiJlber . · · Referene4'l:·.~o.uth :V~ific SettlCment. 

L5 In the event SOUTH PAClFIC def~~by fai,ljng_to .make atiinely 

·payment as. set forth in.ihis SeW.emen~· Agreement, ~- FDIC Shall give writtennoticc"via 

emaU or fax ofthp :default ,SOliDI PA5C. .c/o Tim Cahithlt I u .. .. • •. • fF .. / . 

. i.6' SOUTII PAQIF'IC shall.bave ,fi\re {S) oaJerutsr days fto~ (1ate oftlJ:e.nQiice 

to cure the defaUlt. In ·the. e"Vent that SoDTH'I~ACIRC fu.jls to ~~ th~ ~wt Wi1bin 

· five(S) calendar days, the remain'in.g b~lance oftb,e'SettlementFuDds Will :be 

immediately due -and: payable, and tb.e fDlC·maypursu~the Immediate payment In iWl of 

all swns moaming d~'Wi:thoutturtJicr:·de~ and may,Jn.voke albemedlespe.rmitted 

'bY applic®le·law. The FDIC ~-b~ entitled to coilect ail ~x~.Jn~:J.n·.I'Ul'slling 

the remedies provided in this ~h, i:fu::lucfuig, but npt Jinlite4 io,,atlQ~C(y_s• ·fees 1JI1d CQ~-incurredincollecting an il\ilm·owing. 

RELEASE 

1.7 UnlmoWJI Cbdmso EachPat;ty·aobowJec::lges~this·cxecutcd 

settiem:erttaruh;ele~e ~plies "tP r4t elabps fQ~ inj1¢csj .damages. odosses of:any typ~ ,er 

nature:(whetber tho !It; inji.lrlCfs. dmnages.: or l.Qs~. are knQwn,or unknoWII,:foteseen or 

unfureseen; patent or latent) whic;h tJia;,party mafhavo·ag!UoSt 'tho ·other Party.arising 

A-otn the ·LOANS. Each Party hereby exptessly waiv.es application of ~li,/om(a Cfl!il 

(:()lie §1542and any otMr mmlat statute or iJJle. . 

1.8 Each Party certifies tbat tbey bave·:reac{and UIJ,~ood the fuUowmg 

provisions of'Cd~ifomia CiVil Cede '§1542, wbich$t.a~esmperthientpartasfollo.ws: 

"A general release d®$ not ~n<l to: c4Ums which the 

'eteditor does not knPW.' Qr ~ct to eidst .in his or her 

(!lvor at the time of executing the .rcltde, wl:iieh If known. 

=by ·him or bet· must have JJUiterl8lly aPr~· his ,or· her 

settlement with tliedebtortt · 

1.9 Eaeh Party unde~-~ ~Iatowl~ges that the significance anci 

consequence of its waiveJ: ofCdifomi~ CMI (:pde§1542 is that even 'if:lny.P~·sbould 

eventually suffer additiopa:l ~ages arlsing:out of'thc.LOANS, the~claittas:~:eauses of 

~on that were or could have been assetted.reiatlngtQ the LOANs., nr apy ~ or 

circumstances related to the repurchase ofand/or'izld.em.r:Pfi.Cati()n ofli>~~:associatcd 

With the. LOANS, that Party wil.l not be:a))te·to·~ '!lOY claiin for those.damages. 

fm1heml,o.re, each ackDowle~ges that 'they. consei0\$ly intend the$e Con#q,uenccs evtm. ~ 

SETI'LEMBNT AO~ .t MUTVIU. RBLBASE 

P.ge2of6 
Page 149 

to claims for damag:es that may c:Xi.st 8$ pfthe date of tills release. but which that Pany 

does not know exists, and which; if known; would materially affect that PartY's decisipn 

tQ execute.this release, regardless ofwheihec~t Party's Jack ofknowledge is the result 

of ignorance, oversigh~ ertor, negli_g®ce, or·~y other c~e .. 

l.lO Eaeb.party.Jwreby.:f.wly~ finaUy, and foreverr~ease and ~~gethe 

.other Pattie~, and any and1ill ofits.JeSpe~tive past; pzesent, Jlll4 future afilli~ 

employee8,mmp.be~. partner8,joPl.t v~~ ih9eperident t:OnttaCW~ B.ttQinC)'S, 

~ers, inv:~tors, ~ucce$1!o~.,~~· repre8ent:ative!!,:bfticers, dU:e.etQ.rs, ~~Qlders. 

:indqlCn.dent conttaptors; .predecessors, successots.and assigns,. a®':~y.co:q~~on.. 

partnership or Iiinited liability cb~pany: wb:ioh was ·O.t is at any tDne ·tbe parent or, whOlly 

owned subsidiary: ofsuch entityF imd any !JIICQ c;orp~~tiort's, partners~p's.orJimited 

liability COID.pany!s· officers, dfrectors, and/or Clllpl~yeest. or aiiy corporation, partnership, 

oJ" limited liability company wbioh· ~ or is an affiliate ·.ofsuch.cntity by· virtue of: 

common owp.ersliip.:or eonir~l, and. any such COipOll$tion'~ pa$i~P S Qr·lJn:P.Wd liJ~bility company's, oijicers, direetors. andlo.(C!:ilploY~ ~f~ from ~y BJld all action8, 

causes ohction, claims, ·demands, dam~es. (),ebts, los.ses, coSts, expenses, attomeY fees 

or other ltabil.itic;s· of ev~ Iqnd ancl~ whatsoever, whethorlc;glil or .eq~tab1¢-imd 

Whether known or unknOWJ11 arising•out:of, rewitfug_fro:m,_ or rel~ todn aqy IIUIDDCl'1 

the LOANS, the clabns and causes of.action'that wete P~ C()QU!..have beep asserted. 

relating to tho LOANS, oranyr&cts:or cit~ces:.JClatcd to the~:gfandlor· 

indemnification of losses usaeiatcd with the: LOANS~.c~®Ptthat the FDIC ret:ainS:ay 

ind all actioll$, calises of actlo~ Qlaims,·~~s,.~es~ debts, losses, costs, 

C)tpen:ses, attorney~ or o#!,el: liabilities of:ev.ery kiild;m:bw.me against tHilU> 

PARTIES (clqsing agents, :settiCDicnt-agents, title.companies, ~-C!Om,PI!lll.~. 

JIPpralsers, appraisal eompam~ third party orlginat¢s; Qr hi!J~e compariies for any 

of the foregoiilg,as «iliectiYely referred to·a.s ~·nmulP.t\RTIES'') arisiilg out of'or 

·related to the LOANS. . 

1.11 Notwithstandjng IIJ!.y'Qthea; provi.si9P: m·tbis _Scttlemcnt.~etnent, 

.-SOUTH PACIFIC imm~!Ua~y, ~blsively: and irrev.ocably assisos .to the FDIC·~~ 

all claims, -rights, title or interest tO or for iDJurl~.-~ges. ~r los~ pf~y type or 

nature (whether thOse. injUries, damage~, or·•o~.es ~ ~wn p~ -unlawwn. forelieen or 

un:foteseeQ. patent or:l~ten~) whi~SOutH PACIFIC bas or.may have against 'any 

TH£RD P ARTIBS ariSing. out of~~ rei~ to LOANS. 

1.12 No~ths~g·any·otb,er p.J.Vwsion,by this Settlement Agtednellt, the 

tore does not release;, an~ expres~y preserves fully and to the-same ex~ as if the 

S.ettle:ment Agreement had notbeen.executed il.by action•n by l!llY oth~fe4~ 

agency. In addition, this Settlement,Agre~men~'does J;lOt.purport to Waive, orintcnt·to 

waive, nny claims which could .be bro.qgbt by ·the, United States through either tfui: 

Department of Justice or·~ U~tC!! States Attomeyts Ofli:~ forany fedQUJ. jUdidBI 

district. 

SE'IUEMENTAO~MENT & MUTIJ,I\L~ 

Pqc3 o£6 
Page 150 

1.13 Confidentiality; Exc~t as ailt:boriW! in this Settlement Agreement, the 

Parties a~ that neither they nor.anyone acting· oil"their b~ inclu!fi,ng their r~ective attorneys; will diSclose to anyone any imonna.tionJe.iat.Ulg to, in ~y way, the 

.contents or terms oftbis· Settlem~t.Agte~ment, tlio:m~:t:~ftl)i$ ~ement;· or any .niatters 

pertaining to this ·settlemen4 includini l.ts n.esotiation; unless Such disclosute.is~ (1) 

.iaWfully requir~ by an.y gov~W ·aseDC?.Yi (2) otherWise;'i:equiredby-law(incl~g 

legally. required ii,nancial ~porting-or·"Othet·.dise1osures); (3) n~ssary ~ any legal · 

,p(oceeding or:collcctioil effortini.tiat«< by:~:® FP.IC to r@()Ver ~11 or-anyp!)rl:ion ofthe 

Settlement .Funds; or ( 4) n~ary in any.legal ptWe~ing .to enforce' any proVision of 

this settlement .Agreement. The Patti~ inay,.disclose thetertns of this Settlement 

.Agreement to their re~tive ll~tors,: ~ountants, tax·advl.sots; and legal counsel, but 

olil.y to the extent reqUired for pJ:Pf~onai adVice: from those so..urees and only- ~er 

securi:D,g a commitment from thOse professionals. to maintain the· t;PJ!fidentiallty Q.fthis 

·Settlement Agreement, ·as requir~ 1lbov~ to: the greatest extent:po!lsible con8iderin'g, the 

purpose for which the terms !>fthe·Sef;fl~I:Jlent Agt:eement.are·needed by those 

professionals. 

1.14 Conditiona C)fE~ecuti~~. ~h Party acknowiedges.aruhvanants th.a1 its 

~ec.J,Jti.oq of this Settlement Agreement iS free. and voltmttuy •. 

1.15 N.o Adntission. It is agreed that. no PartYhef~to a:dinil$lial;Uity or 

wrongdoing of any nature, and that this S.ettlcm.ent Agr~cnt is D;lade as.a-compromise 

of disputed claimS. 

1.16 Fair Meailing. ·The Parties •to mrtber'~ee that the langUB.ge of all 

parts of this S.ettlemcnt Agr~ ·shall in:.allc~e~rbC;co.nsttuedas a, wh6Ie. ·according tp 

its fiiir meaping. and .not strictly.fc>r'o' agaii1sf any.of1hePirties. · . 

. 1.11 GQ.verniog. Law •. The Parties agree, to sUbmit 1o the Courts ofth~ Cicy 

and County·ofLos Angeles; CaJifbrtiia, for any'tlispute-arl$b:lg'.out ofthjs S.ettJ.~pt 

·A:greement. ouelatcd thereto; .arui (:OllSent:to·tbe.:jUrl.s4i~QD·of·said Gourts and fUrthe'r 

agree that any Biid all matters .of dispu~ shall be· .adjudicated, governed and controlled 

under Cali.fomia law. 

1..18 Attorn,eys' )1eea. 'Should UQ.Y ~on·be-cOD:irilcnced to enforc.e, interpret, 

or seek damages; injunctive relie~ .or specific perf'On:nancc foi- violation Of this Settlement 

~greement, the prevailing party Shall, in aad.itiQil to ap.y other :available reli~ be entitled 

to an a·ward ofreasonable.attomets fees end litigation ex:p!ms~ incurred in the 

jlro.Seclltion or defense of the acilo11; incl~g any ~peal. 

1.19 Sev~r•b.iUty. the P!U'tj.es hereto ·agree that if any ptovisip.n of this 

Settlement .Agreement is decJared by any oourt to ,be illegal or invalid, the validity of the 

remaining parts. terms or proVisions shall not be. aff~d. thereby, and such illegal or 

SETI'LEMENT AGREEMENT &:MUTUAL!W..EASB 

'Page4of6 · 
Page 151 

'it).valid part, term or provision shall be deemed not to be pilrt of"tbis Settlement 

Agreement · 

1.20 Bio.ding Eftect. This Settlement Agreement shall be binding upon, ~d 

inure to the benefit of the Parties and their respecti.ve."heirsj ·personal xwresentatives, 

:SUCcessorS. and assigps. 

1.21 Review and lJndentmdi,Dg. The Perot$ ·have entered into thiS 

Settlement Agreement voluntarily~ liiivh.lg ;fully ~d ~d J\dly'Und~g.the.me~ 

:illid effeet ofall ofits:terms:ed p~VW.o~; Qnd fql.Jy under8tandiilg its:ii.ilth:hm.CQsts' 

m;ld ,risks. Each of-the p~~ banonslilted With legal coufiSei concemillg this s~ 

~ement and·has conducted sueb:mqtiity:as the)' deem@~ andc;UJvi:;ablc:prior.to 

·entering into this Settlement.Agrtemtnt. The Parties mite~ into~ Se~~t 

Agreement understanding :tha~ '6!,cts or other circw;nstan~ :Ql~Y: existwhi<:b are presently 

Uiiknown or undisClosed, orwhiclt m:e diff.er.entftom or .Other than. those which th~y 

~lieve tq be the·~~e. and au,_ hrties vohmtariiy assume all:tiSks attdldant to such 

unkoow:1, undisclosed. differcntf.or additianai'facts otother circwn~ees; 

1.2.2 ·Approval, Authority._ and Nonwlpment. The Piuties-IqJresent ·and 

warrant to one another that the apprcwahifthis S¢ttl¢Iii.ent A:gre:C1®Dt 1m$ ~ 

undertaken hi a·proper llild IaWl\ii.mami«r. and that they"~ye tliC':requiSite pa~·and 

authority to enter. in~ ,and tcrp~Q.IID ~ ~QJ,igations u:ndet'this Settlement A~t, 

and further warrant andrepreSetn·that·they have not sold, assigned. ~.pr ~eqed, 

to .any other person; corporate or:-naturali or to any entity, .any::c- actlOJ;l, dCllliUld. or 

ca\\se of nction released'by this Settlemen.t A~cnt 

1.23 Number. ~vet'appiica'blc, the:singular sb3ll b:d.1,14e the· plural. and 

:the ,plura 1 shli1.1 include the·:~~-

1.24 .Coiulte~arWExt:~#~Jl. ~ Set¢1~cnt.Agreenientmaybc-cxecuted 

in one or m:ore coi,Ultefp~. all pf·whieh shall form a -~c agree.tli.Cnt. A Party•s 

,signature·. on thi.s Settlem~t.Agreement ~y'.f~~ sball be valid ~!lUi effective fqr~ 

pwposes as an original signature. provi~ ·how.ervet;-'that Ol,e·~~'$ignature $hSll be 

produced upon request. 

1.25 Waiver. No tenn or conditio!l of.thi!!.:Settleme11t ~nt shall be 

deemed to have 1x:en waived, nor-shall tbett}'bew~ppelagainstthc,-etifortem.elll cf 

·any provision of this Settle!J].ent Agreemen~-except by written iiistruments sisnecl l)y the 

PIU'ty qharged with the waiver. or est~ppcl. No written wai:ver slla:II ~ d,e~mied a 

continuing waiver Uiiless ·speciti~y:stated ~ a® 111.~ writteJt waiver shall operate 

only as to the specific term or ,condition :waiyed, llll.d DQH~r -the fUture or as to ~y .other 

act than that specifically waived 

~ AO~&MtJIYALREL~ 

P.11eSof6 
(b)(6) 

Page 152 

1.16 Headings. 'fhe:headings ·of paragraphs herem are intended sol~ly (or the 

convenience of .referenCe and shallnot-cantrorthe meatri.I:IS Q(interpretation of~ of the 

provisi(li:lS ofthis Settlem:eilt ~~~. . 

1.17 Subsequent Agt~m~nt:S. Tho Pariieugr" that. upon the r.easonable 

:request of the other Party, theY ~1 ~ecm.e, aclcnowledg~-ilnd deliver·an~ additional 

instruments or dQt!uments the.t ou.tY reasonably be reqUited to tlartY out the: intentions of 

tJ:lls Settlement Agreement, includihg SUch :mstiUiil.elits as:may bt;t;;:q~ py the l~ws of 

any jurisdiction, now in-.effect or heteina.ftet:enaet¢d, tb"Abn~y.aff~t the right$ oftlle 

-Parties as betWeen themselves or others with t~tto th~ itghts a¢ obligations 

created by this Settlement ~~~t: 

1.18 Entire A:greem~~ "Qte ·Parties·hereto further .. agree:.and promiSe that this 

Settlement Agreell\;elrt:s~ts forth the·.entire agreementbetWeenand Jim:ong the Parties ~ 

fully supersedes any and all prior negotiatio~·agtcem.enl$ QI unavtsAAtcllil~:J;D&d,Cf 

petwcen or among· the Partit5. This Settlement . .Agre.em:~t.¢~ not pe-~e~ptin a writing signed by the ·Parties or their authorized representatives; . 

IN wiTNESS 'WHEREOF, and i.ntendin,g to~ leg~y bo"!Jlld hereby, the, Parties 

have executed this Settl.enJ.eni Apee~cnt as of the· date set forth -in the opening plll'agraph 

of tbi11 Settlem~ll:tAgrec~l 

For~ The FDIC as·Re~:.~~r ~, For: :south Piu:ific Fbfanc;ialCoi'p. 

lndy:Mae Fed.eralBank, FSB tka 

lndyMac: Bank, FSB· 

By; .___I -_____J~ By:._____] -------.J~ 'J;{~c: R~ c.. ~a;~c>.. S , & ~ \\ Nam(l: 'Bo& .Ac~J.+A.vl 

Title: r 0 'C c.. c 0 v ..,, ....... \ Title; $§t.JIO{L VtC£ e~ J ()&.J-r 

'Dat-e: ( ._ :1... 1 - ..2-0 0 ~ Date: 

SETI'LEMENT AGREEMENT & Mt.JTOAL Rm.EAs8 

Page6of6 

(b)(6)