1 

3-17-09; 7:32AM;CBS OUTDOOP, BODMAN/TROY ;713138722910 21 n 

SETTLEMENT AND RELEASE AGREEMENT 

Settlement and Release Agreement 

This Settlement and Release Agreement ("Agreement") with an effective date of 

December 17, 2008 ("Effective Date"), by,, between, and among the following Parties: the 

Plaintiff Federal Deposit Insurance Corporation, in its capacity as receiver for NetBank, FSB 

("FDIC"). and David Tracy, Kimberly Tracy, Patrick Henry Financial Services, Inc., Scott 

Steiner, Kimberly Steiner, Gary M. Farah, Shannon Lalios, Mario Labs, The Valuation Group, 

Inc., Scott Gailey, Justin Shallow, Scott McErlane, Richard Woolsey, Kimberly Rudolph, and 

Daniel Vines (collectively the "Settling Defendants") (individually, the FDIC and the Settling 

Defendants may be referred to herein as "Party" and collectively as the "Parties") 

RECITALS 

WHEREAS: 

Prior to September 27, 2007, NetBank ("Bank") was a depository institution organized 

and existing-under the laws ofA1phareua, Georgia. Pursuant to Order No. 2007-43, issued by 

the Office of Thrift SUpervision on September 27, 2007, the FDIC was appointed Receiver of 

NetBank. On September 28, 2007, the FDIC accepted its appointment as Receiver of NetBank 

in accordance with the Federal Deposit Insurance Act, as amended, by Receiver-In-Charge, 

Robert Schoppe. On the same date, NetBank’s bank charter was pulled and all assets were 

placed in an FDIC Receivership. In accordance with 12 U.S.C. § 1821(d), the FDIC as receiver 

succeeded to all rights, titles, powers and privileges of the Bank, including those with respect to 

its assets. 

Among the assets to which the FDIC as receiver succeeded was the subject mailer of this 

case because, as Receiver of NetBank and by express Operation of law, FDIC-Receiver assumes 

all rights, titles, powers, privileges, and operations of NetBank. See 12 U.S.C. § 1821(d)(2). As 

Receiver and upon assumption of all of NetBank’s operations, FDIC-Receiver essentially stands 
Page 2 

3-17--09; 7:32AM;CBS OUTDOOR BODMAN/T ROY ;7133872290 # 3/ 11 

in NetBank’s shoes and operates as its successor. Id. § I821(d)(2)(B). Accordingly these rights 

include NetBank’s choses in action against all parties in the captioned case. 

On September 25, 2007, NetBank filed a complaint for money damages against certain 

persons, including the Settling Defendants, who were involved in a series of loan transactions 

brokered by Home Connection Mortgage, Inc. Those claims for damages are now pending in the 

United States District Court for the Eastern District of Michigan, Southern Division Case: 2:07-

cv-14045-AC-PJK for a mortgage Joan recovery action ("MLR Action’). The Settling 

Defemlants have denied liability for the FDIC’s claims in the MLR Action. 

The Parties deem it in their best interests to enter into this Agreement to avoid the 

uncertainty, trouble, and expense of further litigation. 

NOW, THEREFORE, in consideration of the promises, undertakings, payments, and 

releases stated herein, the sufficiency of which consideration is hereby acknowledged, the Parties 

agree, each with the other, as follows; 

SECTION 1: Payment to FDIC 

1) The specific terms of settlement regarding the following Parties are identified more 

specifically in the attached Schedules: 

a) David Tracy and Kimberly Tracy - Schedule A; 

b) Patrick Henry Financial Services, Inc. - Schedule B; 

c) Scott Sterner and Kimberly Steiner - Schedule C; 

d) Gary M. Farah - Schedule D; 

e) Shannon Lalios - Schedule E; 

f) Mario Lalios - Schedule F; and 

g) The Valuation Group, Inc., Scott Gailey, Justin Shallow, Scott McErlane, Richard 

Woolsey, Kimberly Rudolph, and Daniel Vines - Schedule G. 

All funds due under this Agreement are called collectively. "Settlement Funds." 

2) The general terms of settlement regarding the following Parties are identified as - follows: 

2 
	 	

Page 3 

3-7-09; 7;32AM;CBS OUTDOOR BODMAN/TROY ;713138722910 9 4/ 1 

a) As an essential covenant and condition to this Agreement, the Settling Defendants agree 

that all Settlement Funds to the FDIC shall include interest thereon from January 31 

2009 through the date of payment, at the simple rate of ten percent (10%) per annum. 

b) Unless specifically otherwise noted in this Agreement, upon the execution of an original, 

or originals in counterpart, of this Agreement by each of the undersigned Parties to this 

Agreement, but no later than January 31, 2009. the Settlement Funds shall be delivered to 

FDIC by direct wire transfer into an account designated by FDIC or by certified or 

cashier’s check drawn upon a depository institution acceptable to FDIC. 

c) In the event that the Settlement Funds are not delivered to the FDIC (or its counsel) by 

January 31, 2009, as a result of the FDIC’s failure to execute this Agreement, no interest 

shall accrue until the day after the FDIC executes the Agreement. 

d) in addition, and without waiving any other rights that the FDIC may have, in the event 

that all Settlement Funds (including all accrued interest) are not received by the FDIC on 

or before January 31, 2009, then, with respect to the. Party, or Parties, that fail to deliver 

their share of the Settlement Funds only, the FDIC, in its sole discretion, shall have the 

right at any time prior to receipt of all Settlement Funds (including all accrued interest) to 

declare this Agreement null and void, shall have the right to extend this Agreement for 

any period of until it receives all Settlement Funds (including all accrued interest), 

and/or shall have the right to enforce this Agreement against the Party or Parties, failing 

to deliver their share of the Settlement Funds, in which event the non-delivering Party, or 

Parties, agreeto jurisdiction in Federal District Court in Eastern District of Michigan, 

Southern Division and agree to pay all of the FDIC’s reasonable attorney’s fees expended 

in enforcing the terms of this Agreement. Any decision by the FDIC to extend the terms 

of this Agreement or to accept a portion of the Settlement Funds shall not prejudice its 

rights to declare this Agreement null and void with respect to the non-delivering Party, or 

Parties, at any time prior to receipt of all Settlement Funds (including all accrued interest) 

or to enforce the terms of this Settlement Agreement; provided however, that in the event 

3 
Page 

5-7-09; 7;32AM;CBS OUTDOOR BODMAN/TROY ;71313872290 # 5/ ii 

the FDIC declares this Agreement null and void, the FDIC will return all amounts paid to 

it under this Agreement by the non-delivering Party, or Parties In no event shall the 

FDIC declare this Agreement null and void with respect to any Party that has delivered 

its share of the Settlement Fund (including any accrued interest) on or before January 31. 

2009. The failure of one Party to deliver its share of the Settlement Funds shall not affect 

the validity of this Agreement with respect to a Party that has delivered its share of the 

Settlement Funds. 

SECTION H: Stipulation and Dismissal 

Upon execution of this Agreement by each of the undersigned Parties, and receipt of the 

Settlement Funds, plus any accrued interest, the FDIC shall move to dismiss Settling Defendants 

from the MLR Action. The undersigned Parties agree to enter stipulation(s) providing that the 

dismissal(s) set forth above shall be with prejudice, with each Party to bear its own costs as these 

were originally incurred. 

SECTION ITh Releases 

1) Release of Individual Settling Defendants by FDIC. 

Effective upon payment of the Settlement Funds plus any accrued interest and dismissal 

described in SECTION(S) 1 and II above, and except as provided in PARAGRAPH(S) 4) and 

SECTION N: below, the FDIC, for itself and its successors and assigns, hereby releases and 

discharges each of the Settling Defendants and their respective heirs, executors, administrators, 

representatives, successors and assigns, from any and all claims, demands, obligations, damages 

actions, and causes of action, direct or indirect, in law or in equity, belonging to the FDIC, that 

arise from or relate to the acts pled in the MLR Action complaint, as amended or the defense of 

the same. 

2) Release of FDIC by the Settling Defendants. 

4 
Page 5 

3-17-09; 7;32AM,CBS OL)TDOO BODMAN/TPOY ;713139722910 6/ ii 

Effective simultaneously with the release granted in PARAGRAPH III.!). above, the 

Settling Defendants, on behalf of themselves individually, and their respective heirs, executors, 

administrators, agents, representatives, successors and assigns, hereby release, and discharge 

FDIC, and its employees, officers, directors, representatives, successors and assigns, from any 

and all claims, demands, obligations, damages, actions, and causes of action, direct or indirect, in 

law or in equity, that arise from or relate to the acts pled in the MLR Action complaint, as 

amended arise from or relate to MLR Action or the prosecution of the same. 

3) Release by Settlingj)efendantsof Each Other. 

Effective simultaneously with the releases granted in Paragraph 111.2). above, the Settling 

Defendants, and their respective heirs, executors, administrators, represent.atives, successors andassigns, hereby release and discharge each other from any and all claims, demands, obligations, 

damages, actions, and causes of action, direct or indirect, in law or in equity, that arise from or 

relate to the acts pled in the MLR Action complaint, as amended arise from or relate to MLR 

Action or the defense of the same. 

4) Express Reservations From Releases By FDIC. 

a) Notwithstanding any other provision, by this Agreement, the FDIC does not release, and 

expressly preserves fully and to the same extent as if the Agreement had not been 

executed, any claims or causes of action: 

i) against the Settling Defendants or any other person or entity for liability, if any, 

incurred a-s the maker, endorser or guarantor of any promissory note or indebtedness 

payable or owed by them to FDIC, the Bank, other financial institutions, or any other 

person or entity, including without limitation any claims acquired by FDIC as 

successor in interest to the Bank or any person or entity other than Bank; 

ii) against any person or entity not expressly released in this Agreement; and 

iii) which are not expressly released in Paragraph JILl), above. 

5 
Page 6 

3-17-09; 7:32AM;CBS OUTDOOR BODMAN/T ROY ;7131367229tO # 7/ ii 

b) Notwithstanding any other provision, nothing in this Agreement shall be construed or 

interpreted as limiting, waiving, releasing or compromising the jurisdiction and authority 

of the FDIC in the exercise of its supervisory or regulatory authority or to diminish its 

ability to institute administrative enforcement proceedings seeking removal, prohibition 

or any other administrative enforcement action which may arise by operation of law, rule 

or regulation. 

C) Notwithstanding any other provision, this Agreement does not purport to waive, or intend 

to waive, any claims which could be brought by the United States through either the 

Department of Justice, the United States Attorneys Office for the State of Michigan, 

Eastern District, Southern Division, or any other 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, et 

if appropriate. 

SECTION IV: Waiver of Dividends 

To the extent, if any, that Settling Defendants are or were shareholders of the Bank and 

by virtue thereof are or may have been entitled to a dividend, payment, or other pro rats 

distribution upon resolution of the receivership of the Bank, they hereby knowingly assign to the 

FDIC any and all rights, titles and interest in and to any and all such dividends payments or 

other pro rats distributions. 

SECTION V: Representations and Acknowledgements 

1) No Admission of Liability. The Parties each acknowledge and agree that the matters set 

forth in this Agreement constitute the settlement and compromise of disputed claims, and that 

this Agreement is not an admission or evidence of liability by any of them regarding any 

claim. 

2) Execution in Counterparts. This Agreement may be executed in counterparts by one or more 

6 
Page 7 

3-17-09; 7:32AM;CBS OUTDOOP BODMAN/TROY ;713138722910 8/ ii 

of the Parties 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 execution and delivery, shall be deemed a complete original, binding the 

Party or Parties subscribed thereto upon the execution by all Parties to this Agreement. 

3) binding Effect. Each of the undersigned persons represents and warrants that they are a 

party or are authorized to sign this Agreement on behalf of the respective party, and 

that they have the full power and authority to bind such party to each and every provision of 

this Agreement. This Agreement shall be binding upon and inure to the benefit of the Parties 

and their respective heirs, executors, administrators, representatives, successors and assigns. 

4) Choice of Law. This Agreement shall be interpreted, construed and enforced according to 

applicable federal law, or in its absence, the laws of the State of Michigan. 

5) Entire Agreement and Amendments. This Agreement constitutes the entire agreement and 

understanding between and among the undersigned Parties concerning the matters set forth 

herein. This Agreement may not, be amended or modified except by another written 

instrument signed by the Party or Parties to be bound thereby, or by their respective 

authorized attorney(s) or other representative(s). 

6) Specific Representations Warranties and Disclaimer. The Parties expressly acknowledge that 

in determining to settle the claims released here, the FDIC has reasonably and justifiably 

relied upon the accuracy of financial information in the affidavits submitted. If, in their 

affidavits, the Parties have failed to disclose any interest, legal, equitable, or beneficial, in 

any asset, or if the Party was involved with the fraudulent conveyance (as defined in the 

Uniform Fraudulent Transfer Act as adopted by Michigan (M.C.L. 566.31 - 566.43) of any 

assets valued at over $1,000.00 within three (3) years of the Effective Date of this 

Agreement, the Parties agree to cooperate fully with the FDIC to transfer their interest in the 

asset to the FDIC and to sign any and all documents necessary to transfer their interest in the 

asset to the FDIC. Moreover, if, in their affidavits the Parties have failed to disclose any 

interest, legal, equitable, or beneficial, in any asset, the FDIC in its sole discretion, may 

7 
Page 8 

GODMAN/TROY ;71306722910 TF 

3-17-0; 7;32AM;CBS OJTOOO -

exercise one or more or all of the following remedies: (a) the FDIC may declare the releases 

granted to the Parties as nut] and void; (b) the FDIC may retain the Settlement Funds; (c) the 

FDIC may sue the Parties for damages, an injunction, and specific performance for the 

breach of this agreement; and (d) the FDIC may seek to vacate any dismissal order and 

reinstate the FDIC’s claims against the Parties. The Parties agree that if, in their affidavits, 

they have failed to disclose any interest, legal, equitable, or beneficial, in any asset, the 

Parties consent to the reinstatement of FDIC’s claims and waive any statute of limitations 

that would bar any of the FDIC’s claims against them. 

7) Reasonable Cooperation. 

a) The Parties agree to cooperate in good faith to effectuate all the terms and conditions of 

this Agreement including doing or causing their agents and attorneys to do, whatever is 

reasonably necessary to effectuate the signing, delivery, execution, fling, recording, and 

entry, of any documents necessary to conclude the MLR Action as to the Settling Parties 

and to otherwise perform the terms of this Agreementb) Further, the Settling Defendants agree to cooperate fully with the FDIC in connection 

with any action required under this Agreement, including without limitation, the FDIC’s 

further prosecution of the MLR Action. Any such cooperation that involves any out of 

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

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

i) producing all documents requested by the FDIC, without the necessity of subpoena, 

as determined by the FDIC, in its sole discretion, to be relevant to the Bank; 

ii) making themselves available upon request by the FDIC at reasonable times and 

places for interviews regarding facts, as determined by the FDIC in its sole discretion, 

to be relevant to the Bank; 

iii) appearing to testify, upon request by the FDIC, in any matter determined by the FDIC 

in its sole discretion, to be related to the Bank, without the necessity of subpoena; and 

iv) signing truthful affidavits upon request by the FDIC, regarding any matter, as 

8 
Page 9 

5-7-0 7;32AM;CBS OUTDOOP BODMANUIPOY ;7131372290 O/ ii 

(b)6) 

(b)6) 

determined by the FDIC in its sole discretion to be relevant to the Bank. 

8) Advice of Counsel. Each Party 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 that Party by his or her counsel. 

9) FDIC Agreement Enforcement. The FDIC may use specific performance to enforce this 

agreement. -

10) Legal Fees. The FDIC shall be entitled to actual legal fees in the enforcement of this 

Agreement. 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed 

by each of them or their duly authorized representatives on the dates hereinafter subscribed. 

FEDERAL DEPOSIT INSURANCE CORPORATION 

Witness/Attest 

DteJ’CUJ’\ I 2009 BY____________________________________ 

Robert J. DeHenael, Jr., Counsel, Legal Division 

David Tracy 

ICin1w1v Tr’, 17i71 

Gary M. Farah 

9 
Page 10 

3-17-09; 7;32AM;C88 OUTDOOR BODMAN/TROY 1- 713136722910 # -ii/ i 

Shannon Lalios 

Mario Lalios 

Patrick Henry Financial Services, inc.: 

BY: 

Secretary Mark Droulliard, President 

The Valuation Group, Inc.: 

BY: 

Secretary Richard Woolsey, President 

Scott Galley 

Justin Shallow 

Scott McErlane 

Richard Woolsey 

Kimberly Rudolph 

Daniel Vines 

thILUMtMT,GKQEMWJFQILM.mom 

10 
(b)(6) 

Page 11 

586--446-9743 FEDEX K114<0S 059 PAGE 11 01/13/209 12:36 

Shannon Lalios 

Secretary 

Secretary 

Mario Lalios 

Patrick Henry Financial Services, Jrc: 

BY:___________________ 

Mark Dronillard, President 

The Valuation Group, Inc. 

BY 

Richard Woolsey, President 

Scott Galley 

Justin Shallow 

Scott MeErlane 

Richard Woolsey 

Kimberly Rudolph 

Daniel Vines 

CFL 

10 
Page 12 

Schedule A 

Settlement and Release Agreement - David Tracy and Kimberly Tracy 

David and Kimberly Tracy shall tender to the FDIC one (1) lump sum payment of 

$5,600.00 on or before December 22, 2008, Ninety (90) days from September 23, 2008. 

The FDIC received this payment timely and hereby acknowledges the receipt of 

the same. 
Page 13 

Schedule B 

Settlement and Release Agreement - Patrick Henry Financial Services, Inc. 

Patrick Henry Financial Services, Inc. shall tender to the FDIC one (1) lump sum 

payment of $6,000 on or before January 30, 2009. This payment may be made by a 

check drawn on an attorney trust account. The releases in settlement Agreement Section 

III 1) and 2) are expressly intended to include Mark Drouillard individually. 
Page 14 BOLMAN/H.OY 	 	 ;7131387229i0 if 

Page lof2 

Schedule C 

Settlement and Release Agreement - Scott Steiner and Kimberly Steiner 

Scott Steiner agrees to pay $SOk plus actual recording fees and costs regarding the Deeds 

of Trust, as defined below (collectively, "Settlement Funds"), to the EDJC as follows: 

1. The Settlement Funds will be paid out ofthe proceeds of the sale of a series of closings 

("Sales") of the following real estate (’Properties"): 

a) 12008 Rossiter St Detroit Ml, 

b) 5609 Bedford Detroit MI, 

c) 5920 Grayton St Detroit MI and 

d) 5231 University Detroit MI; 

2. Mr. Steiner will pledge a security interest to the FDIC in the Properties; 

3. Mr. Steiner will provide complete disclosure of all financing (name of secured lender 

and payoff) and liens (name of lieniiolder and amount of lien) relating to each of the Properties within 14 days. 

4. The security interest will be pefected by the filing of a deed of trust ("Deed of Trust’) 

(which will be drafted by the FDIC); 

5. Mr. Steiner will list the Properties for a reasonable price within 14 days; 

6. Mr. Steiner will, every 30 days, reduce the asking price for each of the Properties by 

the greater of 5% or the realtor’srecommendation; 

7. Interest will accrue on the Settlement Funds unpaid balance at .6% per annum starting 

the date of this agreement; 

8. Mr. Steiner vi11 provide, at his cost, legible copies of deeds to the Properties to the 

FDIC within 14 days; 

9. Mr. Steiner will make a good faith effort to keep the mortgages on the Properties as 

current as possible. The FDIC recognizes that the Properties are presently in varying 

stages of foreclosure. The FDIC recognizes that the valuations of the Properties as 

presented by Scott Steiner are very rough estimates and may be radically inaccurate. 

Scott Steiner shall within 14 days provide the status of the foreclosure of each Property 

to counsel for the FDIC; Scott Steiner shall continue to provide updated statuses of the 

foreclosures every 90 days starting 90 days from the date this Schedule C is executed

and continuing each successive 90 days until all properties have been sold or all 

Settlement Funds are paid. 

10. If the Sales are insufficient to retire the entire Settlement Funds plus interest, then Mr. 

Steiner will remain responsible for paying the FDIC the difference upon demand; 

11. The FDIC shall move to dismiss from the lawsuit Scott Steiner and Kimberly Steiner, 

pursuant to Agreement Section II, Stipulation and Dismissal, upon execution of the:. 

a) Settlement and Release Agreement and Schedule C, 

b) Deeds -of Trust for all Properties and 

c) Presentation of valid listing agreements for all Properties. E-mail copies of 

each listing agreement shall be sent to counsel for the FDIC within 24 hours of 

the date of original exectition and each time each listing agreement is modified; 

and 
iŁ;’ 		L)uIL))uH Page 15 BODMAtWTROY ;71313872290 

Page 2 of 2 

12. All time frames discussed here start 2-26-09. 

Witness/Attest 

FEDERAL DEPOSIT INSURANCE CORPORATION 

(b)(6) 

Date: NO 2009 BY:_______________________________ 

Robert J. DeHenzel, Jr.. Counsel, Legal Division 

... 

(b)(6) 

. -
Page 16 

Schedule D 

Settlement and Release Agreement - Gary M. Farah 

Gary M. Farah shall tender to the FDIC one (1) lump sum payment of $5,000 on 

or before January 16, 2009. Gary M. Farah shall tender to the FDIC an additional 

$20,000 in twenty (20) consecutive monthly payments of $1,000 each. These payments 

shall start February 1, 2008 and continue until paid in full. No interest shall accrue on the 

$20,000 so long as all payments are timely tendered. 
Page 17 

Schedule E 

Settlement and Release Agreement - Shannon Lalios 

Shannon Lalios shall tender to the FDIC one (1) lump sum payment of $9,000 on 

or before January 30, 2009. 

Shannon Lalios will fully cooperate with all reasonable requests by the FDIC to 

prosecute the MLR Action and resolution of the same, provided, however, Shannon 

Lalios specifically preserves, and nothing in the Settlement Agreement and Release shall 

be deemed to waive, any spousal or marital communications privilege she has. 
Page 18 

Schedule F 

Settlement and Release Agreement - Mario La1is 

Mario Lalios shall lender to the FDIC one(]) lump sum pay4nent of $100,000 on 

the date the Agreement is executed. Mario Lalios will tender an additional $700,000 

payable over seven (7) years with interest accruing at the rate of oneyear U.S. Treasury 

bills as reported in the Wall Street Journal at the end of the last quarer immediately 

preceding the date of this Agreement. This interest rate shall be rec1culared on an 

annual basis as of January 1 or the first subsequent date that the Walt Street Journal 

reports the rate of one year U.S. Treasury bills. Minimally, quarterIj payments will be 

due to prevent negative amortization of the amount due. Each such ayment shall be due 

on the first day of each successive quarter until the obligation is paid in full. Time is of 

the essence and failure to timely tender one payment is a material brach of the 

Agreement. 

Mario Lalios will provide security for the above obligations in form and content 

acceptable to the FDIC as determined by the FDIC in its sole and abolute discretion 

("Security Option"). This security must be minimally worth the amunt of the unpaid 

balance due under this Agreement and a security interest in the samel must be properly 

perfected. In the alternative, Mario Lalios will consent to ajudgmert for the unpaid 

balance due ("Consent Judgment Option"). 

The choice of option is Mario Lalios’s. Mario LalIos must e*.ercise this option by 

January 31, 2009, If Mario Lalios fails to exercise his option choiceitben by default the 

Consent Judgment option shall be irrefutably deemed to be chosen bi , Mario Lalios. The

option must be effectuated by February 28, 2009. If Mario Lalios cl )oses the Consent 

Judgment Option, the following applies: if Mario Lalios should file li 2or relief under any 

chapter of the Bankruptcy Code, the debt evidenced by this Agreemnt shall be deemed 

non-dischargeable and presentation of this Agreement shall be prim4facie and irrefutable 

evidence of said non-discbargeability. 
Page 19 

Schedule G 

Settlement and Release Agreement - The Valuation Group, Inc., Scott Gailey, Justin 

Shallow, Scott McErlane, Richard Woolsey, Kimberly Rudolph, Scott Williams and 

Daniel Vines (collectively, "VG Parties") 

The FDIC shall receive one (1) lump sum payment of $320,000 on or before 

thirty days from the date the settlement Agreement is executed by the FDIC and all VG 

Parties. 

The following terms in the settlement Agreement will not apply to the captioned 

defendants: 

1. Representations and warranties that all assets were disclosed; 

2. Representations and warranties that no assets were fraudulently conveyed w/in 3 

years; or 

3. All terms of the settlement agreement are based on a Non-Dischargeable debt 

pursuant to 11 USC § 523. 

As to the VG Parties, Settlement Agreement Section III, paragraph 1 shall be 

deleted and replaced by the following: 

1) Release of Individual Settling Defendants by FDIC. 

Effective upon payment of the Settlement Funds plus any accrued interest and 

dismissal described in SECTION(S) I and II above, and except as provided in 

PARAGRAPH(S) 4) and SECTION IV: below, the FDIC, for itself and its successors 

and assigns, beneficiaries, employees, directors and representative hereby releases and 

discharges each of the Settling Defendants and their respective heirs, executors, 

administrators, representatives, independent contractors, employees, beneficiaries, 

insurers, successors and assigns, from any and all claims, demands, obligations, damages, 

actions, and causes of action, direct or indirect, in law or in equity, including but not 

limited to complaints with the Bureau of Commercial Services of the Department of 

Labor and Economic Growth, belonging to the FDIC, that arise from or relate to the acts 

pled in the MLR Action complaint, as amended or the defense of the same.