(b )(4 )1{9.1 ... ~,. 

(6) 

SETTLEMENT AGRI<:EMENT AND RELEASE 

This Settlement Agreement and Release ("Agreement") is made as of this _day of 

. ___ :, 2013, by, between, and among the Federal Deposit lllSUnmce Corporation as Receiver 

far Colonia Bank ("FDIC-R"), on the one hand, and Linda M. Surges ("Surges"), on the other 

hand, (individually, the FD[C~R and Surges may be referred to herein as a "Party" collectively 

as the "Parties"). 

WHEREAS: 

Prior to August 14, 2009, Colonial Bank, Montgomety, Alabama, ("Dank"), was a 

depository institution organized and existing under the laws ofthe United States. 

On August 14, 2009, the Alabama State Banking Depattment closed the Dank and the 

Federal Deposit Insurance Corporation was appointed as its receiver. In accordance with 12 

U.S.C. § 182l(d), the FDIC-R succeeded to all righL<~, titles, powers, and privileges of the Bank, 

including ~hos e with respect to the claims which are subject to this Agreement 

On or about June 25, 2007 the Bank funded a mortgage loan in the amount of $995,000 

,,JgJ ,,,,,,,,,,,,,,,,:::::::::::::::::::::....... .. ................ jfor...p.roperty .... located·at.j'-...... ...... _____ _,IN orthbxook, Illinois ( the 

"Transaction"). 

1\ dispute has arisen hetween the Parties with rc~p (;:c,.:t l(l ~,;Jairn~ by lh~;; FDIC~R related to 

Surges' actions in the Transaction (hereinafter any and all past, present and future claims by the 

FDIC-R against Surges in connection with the Transaction ure referred to as the ''Claims"). TI1c 

Parties engaged in settlement negotiations as a result of the Claims. Th~ Parties now deem it in 

their best interests to enter into tllis Agreement to avoid the uncertainty, trouble, and expense of 

litigatjon. 
NOW, THEREFORE, in consideration ofthe 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 FmC.R. 

A. As an essential covenant ~md condition to this Agreement, on or befbre forty-tivt:: 

( 45) days following the date the FDIC-R executes this agreement, Surges shall pay the FDIC-R 

the total sum of One Thousand Dollars ($1,000.00) (the .. Settlement Payment"). The Settlement 

Payment shaH be in the fonn of u check made payable to "RJ Landau Partners Client Trust 

Account," mailed to RJ Landau Partners PI.LC, Attn: Richard J. Landau, Esq. 5340 Plymouth 

Rd., Suite 200, Ann Arbor, Michigan 48105, Reference: Colonial Bank/Surges Settlement. 

B. If the FDIC-R does not receive the Settlement Puyment in full on or before tl1e date 

detennitled by subparagraph A above ("Settlement Payment Due Date"), then th~ FDIC-R, in its 

sole discretion; shall have the right to: 

1. extend the period oftime for payment, including interest accruing from the 

Settlement Payment Due Date through the date ofpayment at a ratt: calculated in 

accordance with 26 U.S.C. § 662l(b)(3); or 

2. enforce this Agreement und, in such event, Surges agrees to jurisdiction in 

Federal District Court for the Northern District of Illinois and to pay all of the FDIC·R's 

reasonable attorney's fees and costs expended in enforcing the terms of this Agreement; 

or 

3. declare this Agreement null and void, move to vacate any dismissal order, 

to which Smges agrees to consent, and institute an action on the l•'DIC-R's claims, as to 

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which Surges waives any and all objections and ddenses and covenant and agree not to 

assert any objections and defenses; and/or 

4. seek ru1y other relief available to it in law or equity. 

Any extension of time for delivery of the Settlement Payment shall not prejudice the FDIC-R's 

right to take other actiou or seek any relief after the expiration of such period of extension if the 

FDIC-R docs not receive the Settlement Payment in full, includi11g the right to bring an action to 

enforce the Agreement, or declare the Agreement null and void. 

SECTION U: Releases. 

Each Party acknowledges that this Agreement applies to all claims tor injuries, damages, 

or losses of any type or nature (whether those injuries, damages, or losses are known or 

unknown, foreseen or unforel:ieen, patent or laten.t) w1lich that Party may have against another 

Party arising from the Claims. 

A. The FDIC~R 's Release. 

Upon receipt of the Settlement Payment, plus any accrued interest, and except as 

provided in PARAGRAPH ILC., the FDIC-R, for itself and its successors and assigns, hereby 

releases and disc arge~ Surges and their respective employees, officers, directors, insurers, 

representatives, heirs, executors, administratol's, successors and assigns, from any and all claims, 

demands, contracts, obligations, damages, actions, and causes of action, direct or indirect, in law 

or in equity belonging to the FDTC-R for itself and its successors and assigus, arising out of or 

relnting to th~ Claims. 

Effective simultaneously with the release in PARAGRAPIIll.A. above, Surges, on 

behalf of themselves, and their respective employees, officers, directors, representatives, heirs, 

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........... ···~~·------.......... _ ........... -··········-···· ............... _···-·--·-·--.. 
executors, administrators, successors and assigns, hereby releases and discharges the FDIC~R, 

and its employees, officers, directors, representatives, successors and assigns, ti·om any and all 

claims belonging to Surges, arising out of or relating to the Claims. 

C. _Ex~tions_ to Relcf!~€;_ by FDIC-R. 

1. Notwithstanding any other provision of this Agreement, the l~DIC-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 Surges, or any other person or entity tor liability, if any, 

incuned as the maker, endorser or guarantor of any promiss01y 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 claims acquired by }'DIC-R as successor in interest to the Hank 

or any person or entity other than B<mk; 

b. against any person or entity not expressJy released by the FDIC-R 

in tllis Agreementj or 

c. which are not expressly released in Paragraph II.A. above. 

2. Notwithstanding any othet· provisioti of this Agrt\t:lilt:HL, 11othing herei11 

limits, waives, releases, diminishes or compromises the jurisdiction and authority of the Federal 

Deposit Insurance Corporation in the exercise of its supervismy or regulatory authority to 

institute administrative enforcement or other proceedings seeking removal, prohibition, civil 

penalties, restitution or other rchef it is authorized to seek pursuant to its supervisory or 

regulatory authority agninst any person, or which may arise by operation of law, nde, or 

regulation. 

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

does not waive any claims brought on behalf of another failed institution or any claims which 

could be brought by the United States through the D~partment of Justice, the United States 

Attorney's Office tor any federal judicial district, or any other governmental entity. In addition, 

the PDIC-R specifically reserves the right to seek court ordered restitution pursuant to the 

relevant provisions ofthe Victim and Witness Protection Act, 18 U.S.C. § 3663, et. seq., if 

appropriate. 

SECTION III: Insolvency. 

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A. i 

Surges warrants as to payments made by her or on her bc11alf that at the time of such 

payment, she is not insolvent nor will the payment made by or on its behalf render it insolvent 

within the meaning and/01' for the purposes of the United States Bankruptcy Code. This warranty 

ts made by Surges and 11ot by her counsel. 

B. Preferences. 

In tl1e event that thtl FDIC-R is rcquit·ed to retum any portion of the Settlement Payment 

due to a final orderLy a cou11 thullhe transfer orthe Settlement Payment or any portion thereof 

constituted a preference, voidable preference, ti·audul~t transfer Ol' similar transaction, then, in 

its sole discretion, the FDTC-R may, without waiver of any other rights it may have in law or 

equity, pursue any ofthe rights and remedies set forth in paragraph 1. B.) above, and/or otherwise 

permitted by law. 

SECTION IV: Termination. 

In the event the FDIC-R exercises its right to declare this Agreement null and void as 

provided herein, then, for the purposes of any statute of limitations or other time-based defense 

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... -··--··· ··-····. ···-·----················-·· ............... ·····-··"·--·-···· ···-···········-······. ·-·-··········· 
(b)(6) .. 

to any of the claims ofthe FDIC-R, the parties to this Agreemt:nt shall be deemed to have 

reverted to their respective status as of 5:00p.m. East em Time, September 30, 2013. 

SECTION V: Notices. 

Any notices required hereunder shal1 be sent by registered mail, first class, return receipt 

requested, and may also be sent by email, to the following: 

If to the FDIC·R: 

Richard J. Landau 

RJ Landau Partners PT J.C 

5340 Plymouth Rd., Suite 200 

Ann Arbor, M1 48105 

(734) g(iS-1585 

If to Sw·ges; 

Tige C. Johnson 

Johnson Law, LLC 

29 South LaSalle St., Stc. 220 

Chicago,1L 60603 

(216) 696-1422 

............ 1______ ___, 

SECTION VI: Other Matters. 

A. No Admission of Liability. 

'l1le 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 intinnity by any of them regarding any 

claim or defense, and that the Agreement shall not be offered or received in evid~.:nce by ur 

against any Party hereto, except to enforce its tetms. 

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,:;. ~":tcmion in L:oumeroan,s.. 

-:-,.-;:; ~'-.~~·:-:::1-.:m ;:-,;:;~,, t--: -::-:-::::;~-::-~ i;; -:v~;-,::c :p "-'.:.: ~:: 011c or more oi'thc Parties named 

herein and aii such coumerparts wilen so executed siloii together constirmc the tinai Agreement, 

as if one document had been signed by aii Fanics hereto; and each such coumerparL upon 

execution and deiivery, shaH be deemed a compierc originai, oinciing the Parry or ?arties 

subscribed therem upon t11c execution by aii ?atiies io ti1is Agreement. 

C. Binding_ Efiecr. 

AH of the undersigned persons represent and warrant that they are a Fatty hereto or are 

authorized to sign this Agreement on beiuUf of the respective Party, and that they have the t'uii 

power aud authority to bind such Party to each and every provision of this Agreement. This 

Agreemeni s11al1 be binding upon and inure to the benetlt of the undersigned Parties and their 

respective heirs. executors. administrators. representatives. attomeys. successors and assigns. 

D. Entire Agr~~ment. 

·111is Agreement constitutes the entire agreement and understanding between and among 

the undersigned Parties conceming the matters sei forth herein and supersedes any p1ior 

agreements or understandings. No representations) warranties or inducements have been made to 

or relied on by any Party conccming this Agreement and its exhibits other than those contained 

therein. 

E. Amendments. 

Th1s Agreement may not be amended or modified, nor may any of its provisions be 

waived, except in writing by the Patty or Parties bound thereby, or by their respective authorized 

attorney(s) m· other representative(s). 

F. Reas<;mable Cooperation. 

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1. The undersigned Parties agn.:c to cooperate in good faith to effectuate all 

the terms and conditions of this Agreement, including doing, or causing their agents and 

attomcys to do, whatever is reasonably neccs~my to eficctuate the signing, delivcty, execution, 

filing, recording, and entry, of any documents necessary to perform the tem1s of this Agreement. 

2. Further, Sw·ges agrees to cooperate fully with the FDIC-R in connection 

with any action required under tlti::; Agreement. Any such cooperation that involves any out of 

pocket costs is subject to reasonable reimbursement by the FDIC~R pursuant to its internal 

guidelines and policy for such reimbursement. Such cooperation shall consist of: 

a. producing all documents requested by the FDlC-R, without the 

necessity of subpoena, as determined by the FDIC~R, in its ::;ole discretion, to be relevant to the 

Bank; 

b. making themselves available upon request by the FDlC-R at 

reasonable times and places for interviews regarding facts, as determined by the FDIC-R in its 

sole discretion, to be relevant to the Bank; 

c. appearing to testify, upon request by the FDIC-R, in any matter 

determined by Lh~ FDIC-R in its sole disl:r~Liuu, lube related to the Dcmk, without th~?o necessity 

of subpoena; 

d. signing truthful affidavits upon request by the FDIC-R, regarding 

any matter, as determined by the FDIC-R in its sole discretion, to be relevant to the Bank. 

This Agreement shall be interpreted, construed and enforced according to applicable 

tederallaw, or in it'5 absence, the intemallaws of the;: State ofiilinois, without regard to its 

conflictC> of laws. 

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(b)(6) 

(b)(6) 

H. Advice of Cowl§~!. 

Each Party hereby acknowledges that he or it has consulted with and obtained the advice 

of counsel prior to eKecuting this Agreement, and that this Agreement has been explained to that 

Party by his or her counsel. 

J. J:Jtl.~ and Captions. 

All sccticm titles and captious contained in this Agreement a1·e for convenience only and 

shall not affect the interpretation of this Agreement. 

K. Authorsbip/Constmction. 

Tilis Agreement sets forth tenllS and agreements jointly negotiated by the Parties. It .is 

expr~sly agreed tbat this Ag1:eement shall not be construed for or against any party by l'eason of 

which party drllfted it. 

IN WITNESS WHEREOF, t11e parties hereto have caused this Agreement to be executed 

hy each of them or their du1y authorized representatives on the dates hereinafter subscribed. 

DATE: 

........................................... ArPROVED.ASTO .. FORM 

DATE: 

APPROVED AS TO FORM 

JOHNSON LAW, LLC 

: . OHNSON 

Defendant Ln1da M. Surges 

RJ LANDAU PARTNERS, PLLC 

···········································································!······· 

B~~~~~==~==========~-- \MHARD J. LANDAU 

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Attorney for Defendant FEDERAL 

DEPOSIT INSURANCE CORPORATION 

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DATE: 

DATE: 

J<EDERAL DEPOSIT INSURANCE 

CORPORATION AS RECEIVER FOR 

1\M'fRU~ BANK 

{!j; /...OA) I /VL. 

By: j l J~)(Ej) 

Signature 'CJ 

T rfvMA.s J. 0' IS~' oJ ~o .ose-r.. Fbi c.. -----------·----··-······· ... -··---·-- ·----··· ·---·· ..... ·----·-·-·"'···~· . -- ........ , Print Name and Title 

LINDA M. SURGES <==> 

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i .... ········--··--·-.... -~ ..... ~··.. ... . . . . .... . ...... - ··--····· ··--········-····· -··· .... -. -- . . ·-·-······· ..... . . ...... -"'···············-····--·----·····-·········. . . .. .. .. -·· . ......... . . . ... -···········--·------. . ......... . )