SETTLEMENT AGREEMENT AND RELEASE 

This Settlement Agreement and Release ("'Agreement") is made as of this _ _ day of 

January, 2012 (the "Effective Date") by, between, and among the following Parties: 

The Federal Deposit Insurance Corporation, in its capacity as receiver of 

Pinehurst Bank ("FDIC-R"), and Pinehurst Bancorp, Inc. ("Pinehurst"), 

Roger Amundson, Robert Anderson, Bryan Boldt, Michael Dubcs, 

Richard Joseph, Elizabeth King, Robert A. Kruchoski, Kermcth Robert 

Lea, John Lohmann, Thomas Lohmann, James McCarthy, Russell Nelson, 

Cherie Ritter and Todd Streed (collectively, the "Settling Civil 

Individuals"); John A. Markert and Gregory P. Pederson, (collectively the 

"Settling Criminal Defendants") (the Settling Civil Individuals and the 

Settling Criminal Defendants are sometimes collectively referred to herein 

as the .. Settling Individuals"); and OneBeacon Insurance Company 

e·oneBeacon") (individually, the FDIC-R, the Settling Civil lndividuals, 

the Settling Criminal Defendants, and OneBeacon may be referred to 

herein as "Party" and collectively as the "Parties"). 

RECITALS 

WHEREAS: 

1. Prior to May 21, 2010, Pinehurst Bank (the "Bank") was a corporation organized 

under the laws of Minnesota, with its principal place of business in St. Paul, Ramsey County, 

Minnesota. The Bank was subject to the regulatory authority of the Minnesota Department of 

Commerce (the •'Department") and the Federal Deposit Insurance Corporation (the "FDIC"). 

2. On May 21,2010, pursuant to Minn. Stat.§ 49.04, et seq., the Department closed 

the Bank and appointed the FDIC·R as its receiver pursuant to 12 U.S.C. § l821(c), which 

appointment the FDIC·R accepted. 

3. As set forth in and subject to 12 U.S.C. § 1821 (d), the FDIC-R succeeded to all 

rights, titles, powers and privileges of the Bank, including, and subject to and pursuant to and as 

provided by 12 U.S.C. § 1821(d)(2)(A), certain claims against fonner directors and officers of 

the Bank. 
4. By way of written correspondence dated AprilS, 2011, the FDIC-R made certain 

claims against the Settling Individuals (the "FDIC Claim"). A true copy of the FDIC Claim is 

attached hereto as Exhibit I and incorporated herein by this reference. In the FDIC Claim, the 

FDIC alleges, among other things, that the losses tor which it is seeking recovery "exceed S2.7 

million." 

5. In response to the FDIC Claim, each of the Settling Individuals denies any 

wrongdoing, negligence, gross negligence, malfeasance, misfeasance, breach of duty, or any 

other misconduct, including, without limitation, the allegations made by the FDIC in the FDIC 

Claim, and deny any liability to the FDIC-R. 

6. On June 21, 2011 , a federal grand jury issued a criminal indictment and on 

September 21 , 2011 a federal grand jury issued two Superseding Indictments against 1 ohn A. 

Markert and Gregory P. Pederson, among others, in a criminal proceeding captioned United 

States v. John Anthony Markert. Gregory Paul Pederson and George Leslie Wintz, Jr., United 

States District Court, District of Minnesota, Criminal No. 1 I -200 (ADM/FLN) (the "Criminal 

Claim"). Markert and Pederson deny that they have committed any crime. 

7. OneBeacon issued a "Management and Professional Liability Policy," Number 

(b)( 4} ......... j · I. to Pinehurst Bancorp, Inc. and Pinehurst Bank tor the policy period March 1, 2007 

to March 1, 20 I 0 (the "Policy"). Among other coverages provided, and subject to all of its 

terms, exclusions and conditions, the Policy insured directors and officers of the Bank against 

certain defined liabilities subject to a stated limit of liability. The Policy, subject to all of its 

terms, exclusions and conditions, generally obligates One Beacon to pay on behalf of defined 

"Insured Persons" defined "Loss" which the Insured Persons are legally obligated to pay because 

of defined ""Claims" alleging defined "Wrongful Acts." One Beacon's monetary obligation under 

2 
the Policy, subject to all of its tenns, exclusions and conditions, is capped by the Policy limit of 

$2 million. Defined ""Defense Costs" under the Policy, subject to all of its terms, exclusions and 

conditions, are included within the definition of .. Loss" and are therefore within the Policy limit 

of S2 million. 

8. The Settling Civil Individuals, sought coverage under the Policy for the FDIC 

Claim against them. Subject to a full reservation of its rights under the Policy, OneBeacon 

agreed to reimburse the Settling Civil Individuals for Defense Costs incurred to respond to the 

FDIC Claim. As of December I l, 2011 , One Beacon has paid $116,3 71.89 for Defense Costs of 

Settling Civil Individuals against the FDIC Claim. 

9. The Settling Criminal Defendants also sought coverage under the Policy for the 

Criminal Claim. Subject to a full reservation of its rights under the Policy, One Beacon has 

agreed to advance Defense Costs on behalf of the Settling Criminal Defendants subject to a 

conditional right of recoupment described in the Policy, subject to all of its tenns, exclusions and 

conditions. As of December 11 , 2011, OneBeacon has paid $242,883.40 for Defense Costs of 

the Settling Criminal Defendants against the Criminal Claim. 

10. Regardless of the merits of either the FDIC Claim or the Criminal Claim, all 

Parties acknowledge and agree that the Policy's $2 million limit is insufficient to fund to a 

conclusion litigation of both the FDIC Claim and the Criminal Claim. The Parties further 

acknowledge and agree that the FDIC-R faces the prospect of lengthy and expensive litigation 

with no assurance of a successful result on liability, damages or collectability. Finally, 

OneBeacon acknowledges that its Policy limits will likely be exhausted either by Defense Costs, 

judgments, or both and has notified the FDIC-R and the Settling Individuals that unless an 

agreement is reached regarding allocation of the insurance funds, it intends to interplead the 

3 
Policy and insurance funds with a Court of competent jurisdiction for a determination of 

entitlement to the funds available under the Policy as among the Parties. 

11. Recognizing these realities, and as a result of extensive negotiations between and 

among the FDIC-R, the Settling Individuals, OneBeacon, and the Parties' respective attorneys, 

the FDIC-R is willing to settle the FDIC Claims against the Settling Individuals in exchange for 

a fixed payment ofS81 6,750.00 and other rights granted by this Agreement; the Settling Civil 

Individuals are willing to limit their claims for payment o f Defense Costs arising from the FDJC 

Claims under the Policy to amounts previously paid by One Beacon in connection with the 

FDIC Claims plus any unpaid Defense Costs to be paid in connection with the FDIC Claims, 

said unpaid civil Defense Costs not to exceed $35,000 in total for all Settling Civil Individuals; 

and the Settling Criminal Defendants are willing to release their claims under the Policy for 

payment of Defense Costs arising from the Criminal Claim in exchange for a total payment of 

Defense Costs capped at the unused remainder of the Policy's S2,000,000.00 limit after the 

payment of$816,750.00 as described above to the FDIC-R and after the payment of Defense 

Costs incurred by the Settling Civil lndi viduals as of December 11 , 2011 of S 11 6,3 71.89 and 

after payment of unpaid Defense Costs incurred by the Settling Civil Individuals (not to exceed 

$35,000, with any unused funds being added to the amounts reserved for the Defense Costs of 

the Criminal Claim and any amount not used in defense of the Criminal Claim reverting to the 

FDIC-R), whi ch said total payment of criminal Defense Costs consisting of those amounts 

previously paid by One Beacon in connection with the Criminal Claim ($242,883.40 as of 

December 11 , 2011), plus such additional amounts until said unused remainder of the Policy's 

$2,000,000.00 limit has been exhausted. Thus, this Agreement exhausts (but does not exceed) 

the Policy's limit and is reasonably expected to satisfy all presently known claims that have been 

4 
tendered to OneBeacon for coverage under the Policy, against all persons known to have rights 

under the Policy. 

12. For the reasons described above, each undersigned Party deems it to be in his, her 

or its individual best interests to enter into this Agreement in order to fairly and equitably 

apportion a limited insurance fund in a manner that reasonably accommodates competing claims 

against it, which in the aggregate greatly exceeds its value, to avoid the uncertainty, trouble, and 

expense oflitigation, to eliminate the Settling Individuals' personal exposure to civil liability to 

the FDIC-R, and to leave sufficient insurance funds to permit an adequate defense against the 

Criminal Claim. 

13. Based on the foregoing Recitals, the use of the Policy funds contemplated by this 

Agreement are summarized as follows: Policy Limits $2,000,000, less $816,750 payment to 

FDIC, equals S I, 183,250 remaining in Policy Limits, less $11 6,371.89 Settling Civil Individuals 

Defense Costs Paid as of December 11 , 2011 , equals $1,066,878. 11 remaining in Policy Limits, 

less $35,000 Civil Claim Defense Fund (as defined in Section £I below), equals S 1,031,878.11 

Criminal Claim Defense Fund (before deduction of Costs of Defense paid in connection with 

Criminal Claims). As of December 11, 2011 $242,883.40 has been paid by One Beacon for 

Defense Costs in connection with the Criminal Claim leaving S788, 994.71 remaining in the 

Criminal Claim Defense Fund (as defined in Section III below) plus any amounts not used in the 

Civil Claim Defense Fund. Any Policy residue left after the criminal defense is completed will 

be paid to the FDIC. 

5 
NOW THEREFORE, in consideration of the 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: 

I. The FDIC-R Settlement Payment. 

A. OneBeacon shaH pay to the FDIC-R $816,750.00 ("the FDIC-R 

Settlement Payment"). 

B. Within 15 days after delivery to OneBeacon of an original copy of this 

Agreement executed by each of the undersigned Parties to this Agreement, the FDIC-R 

Settlement Payment shall be delivered to the FDIC-R by direct wire transfer. 

C. If the FDIC-R does not receive the FDIC-R Settlement Payment within 15 

days after delivery to OneBeacon of an original copy of this Agreement executed by each of the 

undersigned Parties to this Agreement, the FDIC-R, in its sole discretion, shall have the right at 

any time to prior to receipt of the FDIC-R Settlement Payment to extend this Agreement for any 

period oftime until it receives the FDIC-R Settlement Payment, or shall have the right to enforce 

this Agreement against the Settling Individuals and OneBeacon, in which event the Settling 

Individuals and OneBeacon agree to jurisdiction in Federal District Court in Minnesota for such 

an enforcement action, and agree to pay all of the FDIC-R's reasonable attorney's fees expended 

in enforcing the terms of this Agreement. 

II. The CiviJ Claim Defense Fund. 

A. OneBeacon shall reserve $35,000 to pay any Defense Costs the 

Settling Civil Individuals may incur in addition to the amounts already paid by One Beacon as of 

December 11, 2011 only with respect to the FDIC Claim (the .. Civil Claim Defense Fund."). 

OneBeacon shall pay Defense Costs in connection with the FDIC Claims from the Civil Claim 

6 
Defense Fund until it is exhausted, after which OneBeacon shall have no further obligations 

under this paragraph. OneBeacon shall have no obligation to allocate the fund between and 

among Settling Civil Individuals or their counsel, but shall merely adjust and pay their Defense 

Costs on a first·come, first-served basis until the fund is exhausted. If a dispute arises between 

or among Settling Civil Individuals or their counsel regarding their respective rights to the fund 

created by this paragraph> they shall resolve that dispute at their own expense and shall jointly 

hold OneBcacon hannless from any legal expense it reasonably and necessarily incurs as a result 

of such dispute. 

B. If the Civil Claim Defense Fund is not exhausted by payment of all 

Defense Costs in connection with the FDIC Claims incurred by the Settling Civil Individuals to 

the Effective Date of this Agreement and disclosed to OneBeacon within 30 days thereafter, any 

remaining funds shall be transferred to the Criminal Claim Defense Fund described below. 

C. The Settling Civil Individuals acknowledge that the cost of their 

defense against the FDIC Claim may exceed the amount made available to them under this 

Agreement and agree that only the Settling Civil Individuals, and no other party to this 

Agreement> shall be responsible for any such cost of their defense over and above the Civil 

Claim Defense Fund. 

Ill. The Criminal Claim Defense Fund. 

A. OneBeacon shall reserve for the exclusive use of the Settling 

Criminal Defendants as Defense Costs against the Criminal Claim the residue of the Policy 

currently consisting of$788,994.71 ($1 ,031 ,878.11 less $242,883.40 paid by One Beacon as 

Defense Costs in connection with the Criminal Claim as of December 11, 2011) plus any unused 

portion of the Civil Defense Fund described above in Section HI (the .. Criminal Claim Defense 

7 
Fund"). OneBeacon shall pay Defense Costs (as defined in the Policy) from the Criminal Claim 

Defense Fund until it is exhausted, after which OneBeacon shall have no further obligations 

under this paragraph. OneBeacon shall have no obligation to allocate the fund between Markert 

and Pederson, but shall merely adjust and pay their Defense Costs on a tirst·come, first·served 

basis until the fund is exhausted. If a dispute arises between Markert and Pederson regarding 

their respective rights to the fund created by this paragraph, they shall resolve that dispute at 

their own expense and shall jointly hold OneBeacon harmless from any legal expense it 

reasonably and necessarily incurs as a result of such dispute. 

B. If the Criminal Claim Defense Fund is not exhausted after final 

judgment on the Criminal Claim is entered as to both Markert and Pederson and all rights of 

appeal (other than habeas corpus) are exhausted and all Defense Costs incurred to that point are 

paid in full, any remaining funds shall be paid to the FDIC·R. 

C. OneBeacon waives any right to recoup Defense Costs from 

Markert and Pederson in exchange for the mutual promises and undertakings of the various 

parties in this Agreement. 

D. Markert and Pederson acknowledge that the cost of their defense 

against the Criminal Claim may exceed the amount made available to them under this Agreement 

and agree that only Markert and Pederson, and no other party to this Agreement, shall be 

responsible for any such cost of their defense over and above the Criminal Claim Defense Fund. 

IV. Releases. 

A. FDIC·R Release of Settling Individuals and Insured Persons. 

Effective upon receipt of the FDIC Settlement Payment described in Section I 

above, the FDIC-R, for itself and its successors and assigns, hereby covenants not to sue the 

8 
Settling Individuals and Insured Persons (as defined in the Policy described above in paragraph 

7) for, and releases and discharges each of the Settling Individuals and Insured Persons 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-R that arise from or in any way relate to the pertonnance, 

nonperformance, or manner of performance of the Settling Individuals' and Insured Persons' 

respective functions, duties, obligations and/or actions as officers and/or directors of the Bank. 

The scope of this covenant not to sue and release includes but is not limited to all claims that 

were made or that could have been made in the FDIC Claim, against all persons, known and 

unknown, who are Insured Persons under the Policy, but it does not include the Criminal Claim. 

Notwithstanding any other provision of this Agreement, the FDIC-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 the Settling Individuals or any other person or entity for 

liability, if incurred as the marker, endorser or guarantor of any promissory note or indebtedness 

payable or owed by them to the FDlC-R, the Bank, other financial institutions, or any other 

person or entity, including without limitation any such claims acquired by the FDIC-R as 

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

b. against any person not expressly released in this Agreement, and 

which are not expressly released in paragraph A above. 

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 capacity or to diminish its 

9 
ability to institute administrative proceedings seeking removal, prohibition, or any other 

administrative enforcement action which may arise by operation of law, rule or reb'lllation. 

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 by the U.S. 

Department of Justice. In addition, the FDIC-R specifically reserves the right to seck courtordered restitution pursuant to the relevant provisions of the Victim and Witness Protection Act, 

18 U.S.C. § 3663, et seq., if appropriate. 

B. Settling Individuals' Releases of FDIC~R. 

Effective upon receipt of the FDIC Settlement Payment described in Section I 

above, the Settling Individuals, and their respective heirs, executors, administrators, 

representatives, successors and assigns hereby release and discharge the FDIC-R 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 trom or relate to the performance, nonperformance, or manner of performance 

of their respective functions, duti es and actions as officers and/or directors of the Bank 

C. Settling Individuals' Releases of Each Other. 

Etiective upon receipt of the FDJC Settlement Payment described in Section 1 

above, the Settling Individuals, and their respective heirs, executors, administrators, 

representatives, successors and assigns 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 performance, nonperfonnance, or manner of 

performance of their respective functions, duties and actions as officers and/or directors of the 

Bank. 

10 
D. FDIC·R Release of OneBeacon. 

Effective upon receipt of the FDIC Settlement Payment described in Section I 

above, the FDIC-R, for itself and its successors and assigns, hereby releases and discharges 

OneBeacon, its parents, subsidiaries, affiliates and reinsurers, and their respective employees, 

officers, directors, agents, 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 Policy. 

E. Settling Individuals' Release of OneBeacon. 

Effective upon receipt of the FDIC Settlement Payment described in Section l 

above and the full execution of this Agreement, the Settling Individuals, on behalf of themselves 

individualJy, and their respective heirs, executors, administrators, agents, representatives, 

successors and assigns, hereby release and discharge OneBeacon, its parents, subsidiaries, 

affiliates and reinsurers, and their respective employees, officers, directors, agents, 

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 

FDIC-R's claims against the Settling Individuals. The scope of this release includes but is not 

limited to claims that Settling Individuals have or may have for breach of contract, declaratory 

relief, bad faith claims denial, other claims handling practices, breach of fiduciary duty, and any 

other theory of recovery arising from or related to the FDIC-R Claim or the Policy. Settling 

Individuals acknowledge that after full performance of OneBeacon's obligations under this 

Agreement, it shall have no further obligations to them under the Policy or otherwise, and 

Settling Individuals shall have no further rights against it or under the Policy. 

11 
F. Markert and Pederson's Release of OneBeacon. 

Effective upon OneBcacon' s fulfillment of its obligations under Section III above 

(regarding the Criminal Claim Defense Fund), Markert and Pederson, on behalf of themselves 

individually, and their respective heirs, executors, administrators, agents, representatives, 

successors and assigns, hereby release and discharge One Beacon, its parents, subsidiaries, 

affiliates and reinsurers, and their respective employees, officers, directors, agents, 

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 

Criminal Claim or the Policy. The scope of this rele.ase includes but is not limited to claims that 

Markert or Pederson have or may have for breach of contract, declaratory relief, bad faith claims 

denial, other claims handling practices, breach of fiduciary duty, and any other theory of 

recovery arising from or related to the Criminal Claim or the Policy. Markert and Pederson 

acknowledge that after full performance ofOneBeacon's obligations under this Agreement, it 

shall have no further obligations to them under the Policy or otherwise, and Markert and 

Pederson shall have no further rights against it or under the Policy. 

G. One Beacon's Release of Settling Individuals 

Effective upon receipt of the FDIC Settlement Payment described in Section I 

above and the full execution of this Agreement, OneBeacon, its parents, subsidiaries, affiliates 

and reinsurers, and their respective employees, officers, directors, agents, representatives, 

successors and assigns, hereby release and discharge the Settling Individuals and their respective 

heirs, executors, administrators, agents, representatives, successors and assigns, from any and all 

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

12 
in equity, that arise from or relate to the Policy and/or the FDIC-R 's claims against the Settling 

Individuals. The scope of this release includes but is not limited to claims that One Beacon has 

or may have for breach of contract, declaratory rei ief, and any other theory of recovery arising 

from or related to the FDIC-R Claim or the Policy. One Beacon acknowledges that after full 

performance of Settling Individuals' obligations under this Agreement, Settling Individuals shall 

have no further obligations to OneBeacon under the Policy or otherwise, and OneBeacon shall 

have no further rights against them or under the Policy. 

H. One Beacon's Release of FDIC-R. 

Effective upon receipt of the FDIC Settlement Payment described in Section I 

above, OneBeacon, for itself and its successors and assigns, hereby releases and discharges 

FDIC-R, its employees, officers, directors, agents, 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 Policy. 

V. Waiver of Dividends and Proceeds from Litigation 

To the extent, if any, that the Settling Individuals are or were a shareholder of the Bank 

or its holding company, and by virtue thereof is or may be entitled to a dividend, payment, or 

other distribution upon resolution of the receivership of the Bank or proceeds in litigation that 

has been or could be brought against the United States based on or arising out ot: in whole or in 

part, the closing of the Bank, or any alleged acts or omissions by the Federal Home Loan Bank 

Board, (or its successors), the Office of Thrift Supervision, the Resolution Trust Corporation (or 

its successors), the FDIC, the Federal Savings and Loan Insurance Corporation Resolution Fund 

(or its successors), the United States govenuncnt in connection with Pinehurst Bank, its 

conservatorship or receivership, the Settling Individuals herby knowingly assign to the FDIC-R 

13 
any and all rights, titles and interest in and to any and all such dividends, payments or other 

distributions, or such proceeds. 

VI. Representations and Acknowledgements. 

A. No Admission of Liability. The undersigned 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 or 

coverage by any of them regarding any claim. 

B. Execution in Counterparts. 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 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. 

C. Binding Effect. Each of the undersigned persons represents and warrants 

that he, she, or it is a Party hereto or is authorized to sign this Agreement on behalf of the 

respective Party, and has 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 undersigned Parties and their respective heirs, executors, administrators, representatives, 

successors and assigns. 

D. Specific Representations and Warranties. Each Settling Individual that 

provided financial information to the FDIC-R severally, but not jointly, swears or affirms that 

financial information they provided to the FDIC-R was true, complete, and accurate at the time 

of submission. The Settling Individuals expressly acknowledge that, in determining to settle the 

14 
claims released herein, the FDIC-R in deciding to execute this Agreement, has reasonably and 

justifiably relied upon the accuracy of the financial infonnation which the Settling Individuals 

provided to the FDIC-R the ( .. Financial Information"). Tf, in such Financial Information, a 

Settling Individual failed to disclose any liquid unencumbered assets owned individually by such 

Settling Individual, such Settling Individual agrees that the FDIC-R, in its sole discretion, may 

exercise one more of the following remedies: (a) the FDIC-R may declare the release granted to 

any such offending Settling Individual null and void; (b) the FDIC-R may retain the Settlement 

Payment; and (c) the FDIC-R may sue any such offending Settling Individual for damages, an 

injunction and specific performance for breach of this Agreement. The Settling Individuals 

agree that it: in their Financial Infonnation, they failed to disclose any liquid unencumbered 

assets owned individually by such Settling Individual, the FDIC-R may reinstate the FDIC-R's 

claims against any such offending Settling Individual and that any such offending Settling 

Individual agrees that any statute of limitations applicable to any of the FDIC-R 's claims against 

him or her shall be tolled until such time as the FDIC discovers or should have (in the exercise of 

reasonable diligence) discovered said failure to disclose. 

F. Reasonable Cooperation. The undersigned Parties agree to cooperate in 

good faith to etlectuate all the terms and conditions of this Agreement. 

G. Choice of Law and Venue. This Agreement shall be interpreted, 

construed and enforced according to applicable federal law, or in its absence, the laws of the 

State of Minnesota. Any suit to enforce the tenns of this Agreement shall be commenced in a 

court within the State of Minnesota. 

H. Entire Agreement and Amendments. This Agreement constitutes the 

entire agreement and understanding between and among the undersigned Parties concerning the 

15 
matters set forth herein. This Agreement may not be amended or modi tied except by another 

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

authorized attomey( s) or other rcprcsentat ivc( s ). 

I. Advice of Counsel. Each Party hereby acknowledges that he, she, or it 

has consulted with and obtained the advice of legal counsel prior tO executing this Agreement, 

and that this Agreement has been explained to that Party by his, her, or its counsel. The Parties 

agree that in construing this Agreemt!nt all parties shall be deemed to have been equally involved 

in its drafting. 

J. Recitals. The recitals in Paragraphs 1-13 above are integral to and 

intended to be a part of this Agreement and arc expressly incorporated herein by this reference. 

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

executed by ea~.:h of them or their duly authorized representatives on the datt::s hereinafter 

subscribed. 

FEDERAL DEPOSIT INSURANCE CORPORATION, As Receiver for Pinehurst Bank 

(b)(G} Dii.iii'ZtJ.if):_!if ................................ . BY'E··········· ~ \ t Prin arne: ,_)Q\T~ ~~l 

Title: Co v ~S 6 '-

ONEBEACONINSURANCECOMPANY 

Date: ----- By: __________ __ 

Print Name: --------

Title: -------------

16 
matters set forth herein. This Agreement may not be amended or modified except by another 

\\-Tittcn instrument signed by the Party or Parties to be bound thereby or by their respective 

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

I. Advice of Counsel. Each Party hereby acknowledges that he, she, or it 

has consulted with and obtained the advice of legal counsel prior to executing this Agreement, 

and that this Agreement has been explained to that Party by his, her, or its counsel. The Parties 

agree that in construing this Agreement all parties shall be deemed to have been equally involved 

in its drafting. 

J. Recitals. The recitals in Paragraphs 1-13 above are integral to and 

intended to be a part of this Agreement and are expressly incorporated herein by this reference. 

fN W11NESS 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, As Receiver for Pinehurst Bank 

Date: ----- By: _____ _____ ___ 

Print Name: - ------

Title: -------------------

(b )(6.)_ ()tJI>B;Tor~:RANCE COMPANY 

Date: 7 By: ~~--------~--~----~~~~ 

Print NamcTbtreS<A A · 

Title: Y P CJ Q \ VV\S 

16 
PINEHURST BANCORP, INC. r--------------, <b><6J- - o~;~?tl;;: ································ ~ - L 

ROGER AMUNDSON 

Date: ----

ROBERT ANDERSON 

Date: 

----

BRYAN BOLDT 

Date: 

----

MICHAEL DUBES 

Date: 

----

RICHARD JOSEPH 

Date: - - --

PrintName:--r:f±Qt-\1\S [3: . Lo lfM'ANrJ 

Title: ~ ree:.s I O~NV 

ROGER AMUNDSON 

- ---------- - ROBERT ANDERSON 

BRYAN BOLDT 

MICHAEL DUBES 

RICHARD JOSEPH 

17 
PINEHURST BANCORP, INC. 

Date: ----

(b )(6) ROGE:RAMllhJDSON ....... 

Date: ~-7-1~ 

ROBERT ANDERSON 

Date: ----

BRYAN BOLDT 

Date: ----

MICHAEL DUBES 

Date: ----

RICHARD JOSEPH 

Date: ----

By: ________ _ 

Print Name: _____ _ 

Title: _______ _ 

SON 

ROBERT ANDERSON 

BRYAN BOLDT 

MICHAEL DUBES 

RICHARD JOSEPH 

17 
PINEHURST BANCORP, INC. 

Date: By: ________________ __ 

Print Name: ----------

Title: ---

ROGER AMUNDSON 

Date: -- ---·- ----··----- --· ·- ROGER AMUNDSON 

(b )(6) ROBERT ANDERSON···························································································!· 

Date:"'· 1 lJ ·I~ . 

~R-O_B_E-RT~A-N~D-ER_S_O_N----~---

BRYAN BOLDT 

Date: ---- BRYAN BOLDT 

MICHAEL DUBES 

Date: 

MICHAEL DUBES 

RICHARD JOSEPH 

Date: ------- RICHARD JOSEPH 

17 
PINEHURST BANCORP, INC. 

Date: 

--- - By: _ _____ _ _ _ 

Print Name: ------

Title: - ------ ------

ROGER AMUNDSON 

Date: 

RCGER AMlJNDSON 

ROBERT ANDERSON 

Date: ---- ROBERT ANDERSON 

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Date: 2-8...- ~~ _ 

BRYAN BotJ51U 

MICHAEL DUBES 

Date: ---- MJCHAEL DUBES 

RICHARD JOSEPH 

Date: - --- RICHARD JOSEPH 

17 
(b )(6_ 

PINFRURST BANCORP, INC. 

Date: 

----

ROOER AMUNDSON 

Date: 

----

ROBERT ANDERSON 

Date: ----

BRYAN BOlDT 

Date: ----

MICHAB.. DUBES 

Date: /J'3 I"' )ci / Y 

RICHARD JOSEPH 

Date: 

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By: _______ _ 

Print Natre: ------

Title:--------

ROGER AMUNDSON 

ROBERT ANDERSON 

BRYAN BOlDT 

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MICiiAFL DUBES • 

RIOIARD JOSFPH 
(b)(a 

PINEHURST BANCORP, INC. 

Date: ___ _ 

ROGER AMUNDSON 

Date: ------

ROBERT ANDERSON 

Date: ----

BRYAN BOLDT 

Date: 

----

MICHAEL DUBES 

Date: 

RICHARD JOSEPH 

Date: 1 /~ /elBy: 

----------------- Print Name: ------

Title: 

---------------

ROGER AMUNDSON 

ROBERT ANDERSON 

BRYAN BOLDT 

MICHAEL DUBES 

RICHARD JOSEPH 

17 
(b )(6) ELIZABETJ I KING 

Date: 2/zJd 12-

ROBERT A. KRUCHOSKI 

Date: ----

KENNETH ROBERT LEA 

Date: ----

JOHN LOHMANN 

Date: ----

THOMAS LOHMANN 

Date: ----

JOHN A. MARKERT 

Date: ----

JAMES MCCARTHY 

Date: ----

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ELIZA<fffiTH kJNG 

ROBERT A. KRUCIIOSKI 

KENNETH ROBERT LEA 

JOHN LOHMANN 

THOMAS LOHMANN 

JOHN A. MARKERT 

JAMES MCCARTHY 

18 
ELIZABETH KING 

Date: ----

(b )(6_)_ ROB~RT A-!.:~UCHOSKI 

Date: /-3 0 -f;J. 

KENNETH ROBERT LEA 

Date: ----

JOHN LOHMANN 

Date: ----

THOMAS LOHMANN 

Date: ----

JOHN A. MARKERT 

Date: ----

JAMES MCCARTHY 

Date: ----

ELIZABETH KING 

ROBERT A. KRUCHOSKI 

KENNETH ROBERT LEA 

.JOHN LOHMANN 

THOMAS LOHMANN 

JOHN A. MARKERT 

---------- ---- JAMES MCCARTHY 

18 
ELIZABETH KING 

Date: ---- ELIZABETH KING 

ROBERT A. KRUCHOSKI 

Date: ___ _ 

ROBERT A. KRUCHOSKI 

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JOHN LOHMANN 

Date: ---- JOHN LOHMANN 

THOMAS LOHMANN 

Date: ---- THOMAS LOHMANN 

JOHN A MARKERT 

Date: ___ _ 

JOHN A MARKERT 

JAMES MCCARTHY 

Date: ---- JAMES MCCARTHY 

18 
ELIZABETII KING 

Date: ----

ROBERT A. KRUCHOSKI 

Date: ----

KENNETH ROBERT LEA 

Date: ----

ELIZABETH KING 

ROBERT A. KRUCHOSKI 

KENNETII ROBERT LEA 

(b )(G_),__ JO_HN_ L_o_H_M_A_NN _ ____ _ 1

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JOi{!fiZOOMANN ~ 

THOMAS LOHMANN 

Date: ----

JOHN A. MARKERT 

Date: ----

.lAMES MCCARTHY 

Date: ----

THOMAS LOHMANN 

JOHN A. MARKERT 

JAMES MCCARTHY 

18 
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ELIZABETH KING 

Date: 

- - -- ELIZABETH KJNG 

ROBERT A KRUCHOSKI 

Date: 

- - -- ROBERT A. KRUCHOSKI 

KENNETH ROBERT LEA 

Date: 

---- KENNETH ROBERT LEA 

JOHN LOHMANN 

Date: ---- JOHN LOHMANN 

THOMAS LOHMANN ______ L______ l 

Date: t/-a...1 b:l..L L...----------""--- THOMAS LOHMANN 

JOHN A. MARKERT 

Date: - - -- JOHN A. MARKERT 

JAMES MCCARTHY 

Date: - --- JAMES MCCARTHY 

18 
ELIZABETH KING 

Date: ---- ELIZABETH KING 

ROBERT A. KRUCHOSKI 

Date: ---- ROBERT A. KRUCHOSKI 

KENNETH ROBERT LEA 

Date: ___ _ 

KENNETH ROBERT LEA 

JOHN LOHMANN 

Date: ~---

JOHN LOHMANN 

THOMAS LOHMANN 

Date: ---- THOMAS LOHMANN 

(b )(6}. . . ·····- JOHN A. MARKERT 

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JAMES MCCARTHY 

Date: ___ _ 

JAMES MCCARTHY 

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ELIZABETH KJNG 

Date: ---- ELIZABETH KlNG 

ROBERT A. KRUCHOSKI 

Date: ---- ROBERTA. KRUCHOSK£ 

KENNETH ROBERT LEA 

Date: ---- KENNETH ROBERT LEA 

JOHN LOHMANN 

Date: ---- JOHN LOHMANN 

THOMAS LOHMANN 

Date: _ __ _ 

THOMAS LOHMANN 

JOHN A. MARKERT 

Date: 

---- JOHN A. MARKERT 

(b)( 6_) ________ _ JAMES "Nf~CA:RTitY--------- • 

Date:~Z CAR THY 

18 
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GREGORY P. PEDERSON 

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CHERIE RITTER 

Date: ---- CHERIE RITTER 

TODD STREED 

Date: ---- TODD STREED 

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RUSSELL NELSON 

Date: ----

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Date: t/1] /11- , I 

CHERIE RITTER 

Date: ----

TODD STREED 

Date: ----

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RUSSELL NELSON 

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CHERIE RITTER 

TODD STREED 

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RUSSELL NELSON 

Date: ___ _ 

RUSSELL NELSON 

GREGORY P. PEDERSON 

Date: ---- GREGORY P. PEDERSON 

(b )(6) CHERIE RITTER 

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

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TODD STREED 

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RUSSELL NELSON 

Date: ---- RUSSELL NELSON 

GREGORY P. PEDERSON 

Date: ---- GREGORY P. PEDERSON 

CHERIE RITTER 

Date: ---- CHERJE RITTER 

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