SETfl~EMENT ~~D RELEASE AGREEMENT 

Alnv-'a.t This Settlement and Release Agreement (

11 Agreemenf') is made as of this ~y of 

~~ 2013. by? between~ and among1he f<tHowing undersigned parties: 

The Plaintiff Federal Deposi11nsurance Corporation, as receiver of Colonial (' FDIC~R")~ 

and Defendtmts Traditional Escrow, Inc. ( .. Traditional'"') and Kent l Wenzel dba Wenr.et 

Appraisal Services C'Wenzel'') (collectively the "Settling Defend~ts' ) (individually, the FDIC~ 

R {Wd the Settling Defendants may bt referred to herein as ~~Parti' and oollcctively ag the 

upruties''). 

RECITALS 

WHEREAS: 

Prior to August 14, 20091 Colonial Bank C"Bank'~ was a depository institution organiz-ed 

and existing under the laws of '!be State of Alabama. 

On August J 4, 2009. the Bank was closed by the Alabama State Banking Department and 

pursuant to 12 U.S.C. § 1 82l(c), the Federal Deposit :rrisurance Corporation was appointed 

receiver, ln accordance with l2 U.S.C. § 1 82l(d), the FDIC~R suc~ed to aU rightsl titlos, 

powers and privileges of the Bank, including those with respect to its assets, 

On August 10, 2012, ·the FDICMR filed a complaint for money damages against the 

Settling Defendants. Those claims for damages are now pending in the United Stares District 

Court for the Central District of California in Federal Deposit Insurance Corporation as 

Receiver for Calon.ial.Bank v. 1'rat/ttional EscrQW Inc. and Kem J. Wer.zel dba Wenzel Appraisal 

Services, Case No, 12-cv-01302~BRO (.R.NBx) (the "Action"). alleging that the Settling 

Defendants caused damages to the FDIC-R. 

A dispute has arisen between the Parties with respect to the claims by the FDIC~R related 

to the Settling Defendants~ actions as alleged in the Action (hereinafter any all claims by the 

FDIC~R against the Settling Dcrend~.mts related to the allegations made in th~ Action are referred 

to as ••claims,} The Settling Defendants deny the Claims made in the Action against the 
Settling Defendants. The Parties engaged in settlement negotiations as a resu.lt of the Churns. 

Tbe Parties now deem it in their best interests to enter into this Agreement to awid the 

uncertainty, trouble, and expense of litigation. 

The undermgned parties deem it in their best interests to enter into this Agreement to 

avoid the uncertaintyt troubJe, and expense of further litigation. 

NOW, 1HEREFORE, in consideration of the promises, undertakingst payments, and 

reloo!ies stated herein, the sufficiency of which consideration is hereby acknowledged, the 

undersigned parties agree, each with the other, as follows: 

SECTION If Payment to FDfC·R 

A. As ah essential oovemnt and oondition to this Agreement, the Settling Defendants 

agree to pay the FDIC-R the total sum of One Hundred Eighty-Two Thousand Five Hundred 

Dollm ($182,500} {"the Settlement Funds11) , Traditional is to pay Eighty-Seven Thousand Five 

Hund.rcd Doll3rs ($87,500} and Wenzel is to p11y Ninety-Five Thousand Dollars ($95,000), to the 

Mortgage Recovery Law Group LLP•s Tru~ Acoount within f'orty~five (45) days of the FD!Cw 

R,s execution of the Agreerneot • 

. B. fu additioni and 't'tithout Vtrefving any other rights that the FDIC-R may havet in 

the event that Settlement Funds are not received by the FDIC-R em or before the expiration of the 

thirty days, then) witl1 respect to the Settling Defend~, that fail to deliver the Settlement Funds 

only, the FDIG·R, in its sole discretion. shall have the rlght at any time prior to receipt of all 

Settlement Funds to declare this Agreement nnll and void, shall have the right to extend this 

Agre&n.¢nt for any period of time until it receives ~u Settlement Funds, andlor shall have the 

right to enforce this Agreem~nt against th~ Settling Defendants. failing to del! vcr their share of 

the Settlement Funds~ in wbich event the non-delivering Settling Defendants, agree to 

jurisdiction in Federal District Court in C&Jifornia and agree to pay all of the FDIC-R's 

reasonabl~ attorneis fees expended in enforcing the terms of this Agreement. Any decision by 

the FDTC-R to extend the terms of this Agr~ment <>r 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 Settling Defimdants, at any time p.rior to receipt of all Settlement Funds or to enforce 

the tel'Ulli of this Settlement Agreement; provh:led h<>wever, that in the event the FDTG·R declares 

this Agreement nun and voi~ the FDIC-R wiH return ~u amounts paid to it under this Agreement 

by the non--delivering Settling Defendants. In no event shall the FDIC-R declare this Agreement 

null and void with respect to any Settling Defendant that has delivered its .share of the Settlement 

Funds on or befure the expiration of the thirty d:ay period. The fail'l.U"e of one Settling Defendant 

to deliver its share of the Settlement FWi.ds shall not affect the valldity of this Agreement with 

respect to a Settling Defendant that has deliveted its share of the Settlement Funds, 

SECilON ll: StipniJltion and Dismissll 

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

Sett[cment Funds the FDlC-R shall dismitJS the Action. Th~ undersigned Parties agree to enter 

stipulation(s) providing that the dis.m.issal(s) set forth above shall be with prejudi~ with each 

party to bear its own costs as these vvere originally ineurred. 

SECTlON III: R~eases 

Eacb Party acknowledges that this Agreement applies to all olaims for injuries~ damages. 

or losses <>f any type or nature (whether those itljurl~ damages, or losses are known ot 

unknownJ foreseen or unforeseen~ patent or Jatent) which thm Party may have against another 

Party arising .from the Claims. Each Party hereby expressly waives application of Califm•nia 

CMI Code §1542 and any other similar statute or rule. 

Each PfU'ty certifies that they have read and understood the following provi~'ions of 

California Civil Cede §1.5421 which states in pertinent part as follows: 

A general release does not extend to claims which 1be creditor does 

not know or su~JX:Ct to exist in his or her favor at the time of 

executing the release, which if known by him or her must have 

materially affected his or her settlement \vith the debtor. 

Eaah Party understands and acknowledges that the significance and ronsequellC¢ ofim 

j 
waiver of Califwnta Civil Code§ 1542 is that even if any Party should eventually suffer 

a.ddmomd damages arising out of the Claims, the claims and causes of action that were or could 

have been asserted relating to the Claims, or any facts or circumstances related to the Claims~ 

that Party will not lit able to make any claim against t~ oilier Party for those damages. 

r"'urthennore, each Party acknowledges that it consciously intends these consequences even as to 

claims for damages thnt may exist as of the date of this release hut which that Party does oot 

know existsj fu'!d whic~ ifknown~ would materially affect that Party's decision to execute this 

release, regardless of whether that Party's lack of knowledge ls the result of ignorance. oversight:. 

error, neglige~ or any other cause. 

A Rel~se of Individual Settling Def~ants by FDIC~R. 

Effective upon receipt in full of the settlement funds a.nd dismissal described in 

. SECTION{S) I and ll above~ and except as provided in PARAGRAPH(S) III. C., the FDICwR., for 

itseJfand its successors and assigns, hereby retease.q and discharges each of the Settling 

Defendants and their respective he~ executms, administrators, representatives, .successors and 

assigns~ from ~Y and all claims~ demand~. obligations, damages. actions~ and causes of action, 

direct or indirect, in law or in equityt belonging to the FDIC-~ that arise from or relate to. the 

perfor.rnance, nonp~lfonrumce, or manner ofperfor.rnance of the Settling Defendan1s1 respective 

functions, duties and actions including without limitation the causes of action alleged in the 

Action, 

B. Release on:rHC-R by the Settling Defendants1 

Effective simultaneously with the release granted in PARAGRAPH III.A. abovet the 

Settling Defendants~ on behalf of themselves ir'..dividuaHy, and their respective heirs, executors1 

ad.rninistrators~ agents~ r~presemadves. successors and assigns, hereby release and discharge 

FDIC~R, and its employees, officers, directors, representatives~ successors and tlSlligus,. from any 
and aU claim~ demands~ obligath:ms~ damages> actions, ~nd causes of action, direct or indirect, in 

law or in equity, that arise from or relate to, the Bank or to the performance, nonperfor:mance~ or 

manner of performance of the Settling Defendants' respective functions, duties and actions that 

arise from or relate to the Action. 

C. !l?;m~..R~~J!licns Frron R~leas~s 13): ~~ 

l. Notwithstanding any other proVision, by this Agreement; the FDIC-R does not 

release, and expressly preserves fully and to the smne extent as if the Agrel.mlent had not been 

executed, any claims or cauaes of action: 

a. against the Settling Defendants or any other person or entity for liability, if 

any~ incurred as tlie nl.aker, endorser or guarantor of any promissory note or indebtedness 

payable or owed by them to FDIC-~ the Bank; other financial instimtionSs or any other person 

or entity, including without limitation any claims· acquired by Federcl Deposit Insurance 

Corporation as SUCOO$Sor in interest to the Bank or any person or entity other than Bank; 

b, against any person or entity not expressly :released ln this Agreement; and 

c. which me not expressly released in Paragraphs TII.A. aoove. 

2. Notwithstanding any other provision, nothtng in this Agreement shall be 

construed or interpreted as limitin& wfrivin& releasing or compromising the jurisdiction and 

authority of th.e Federal Deposit Insurance Corporation in the exercise of its supervisory or 

regulatory authority or to diminish its ability to instittne administrative enforcement proceedings 

seeking removal) prohibition or any other administrative euforooment action which may arise by 

operation of law~ rule or regulation. 

3. Notwithstanding any other provision, 1his 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 Central District of 

California or any oilier federal judicial district. In addition: ilie FDIC-R .spedficfllly r¢scrves the 

right. to seek court ordered restitution pursuant to the relevant provisions of the Victim and 

Witness Protection Act, J 8 U.S. C. § 3663 ~ ~ ~ if appropriate. 
SECTION lV: Notit~. 

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

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

.If to the FDJC-R: 

Andrew P. Baeza 

Mortgag~ Reoovery Law Oroup 

700 North Brand Boulevard> Suite 830 

Glendale, California 91203 

(818) 630&7900 

(b)(6).............. ······················· 1_-- ..... ________ __, 

If to Traditional; 

PaulS. Sienski 

Law Office ofPau1 S. Sienski 

711 South Bm Boulev~rd 

Brea, California 92821 

(714) 990-5521 

(b)(6) ___ ........ .... . 1.._;_ ...... _ .. ____ __. 

If to Wenzel: 

Mark D. Licker 

Ericksen Arbuthnot 

83 5 Wilshire Boulevard, Suite 500 

Los Angeles, Caiifumia 90017 

(213) 489-441 J 

(b)(6). 0 oHO ....... (_ ••••••• _ •••••••••• _ •••••••••• _ •••••• _____ __. 

SECTION IV: Representations and A<!klmwledg()ments 

A NQ Admission of Liability. The underslgned P&ties each acknowledge and agree 

that the matters sot fort.~ in this . .t\.greement ¢ttnstitute 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. 

B. Execution _in Counremru.ts. This Agreement may be executed in counterparts by 

one or more ofthe parties named herein and i\11 such counterparts when so executed shall 

together constitute tlte final Agreement, as if one document had been signed by all parties h~o; 

l 

l 

I I 

J 
and each such coume!part, :upon execution .and delivery, shall be deemed a t{)rnp[ete original~ 

binding the party or parties subscribed thereto upon the execution by aU parties to this 

Agreement. 

C, Bindiru\ gm~ct Each of the undersigned persons represents and warrants that 

they are a party hereto or are authoriud to sign this Agreement on behalf of the respective party. 

and that they ruwe the full power and authority to b1nd such party to each and e:very provision of 

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

undersigned parties and their respective heirsJ executors~ administrators, representative~ 

successors and assigns. 

D. Choic~ of Law. This Agreement shan be interpreted, construed and enforced 

according ro ap_plicable federal Jaw~ or in its absence, the laM of the State ofC~Hfurnia. 

E. Entire Agreement an~ ~ments. 11rls Agreement constitutes the entire 

agreement and understanding between and among the undersigned parties concerning the matters 

set fooh herein. This Agreement may not be amended or modified except by another v-.oritten 

in.strument signed by the party or parties to be bound thereby~ nr by their respective authorized 

attorney(s) or other representative(s), 

F. Advice of Counsel. Each party hereby acknowledges that it has consulted with 

and obtain..ed the advice of counsel prior to executing this Agreement, and that this Agreement 

has been eKprnined to that party by his or her counsel. 
IN WITNESS WHEREOFt the parties hereto have caused this Agre:e.ment to be executed 

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

DATE: 

APPROVED AS TO FORM 

DATE: 

DATE: Jt/r/J:3 

(b)(6) ····································A:PPROVEDM T(}·P()R:tvf 

DATE: f(. 

. fl-~-13 

LAW OFFICE OF PAULS. SLENSKJ 

By: ~~~==~=--------------- PAUL S. SIENSKI 

By: 

By: 

Att\Jrr£Y for Dcfundant TRADITIONAL 

ESCROWs INC. 

TRADITIONAL ESCROW, INC,1 a Califomi~ 

corporation 

~------------------ Stgnaturo 

Prtnt Nm;re and Tttle 

~~~.,L~ICmKEr.~-R~----~-

Attorney for Defendant KENT J. WENZEL 

dba WENZEL APPRAISAL SERVICES 

KENT J. WENZEL dba WENZEL 

APPRAlSAL SERVICES 

.·. .. 
(b)(6) 

____ ,___ .......... ---.~··~--· ......... ......._."1" ••••••.. ___ .. _ .......... --~~ -~- --

DATE: 

APPROVED AS TO FOR.i\11 

By: 

DATE: 1('/t-5 

MORTGAGE RECOVERY LAW OROUP 

LLP 

ANDREWP.BA 

Attorney fur Plaintiff FEDERAL DEPOSIT 

INSURANCE CORPORATION as Roociver 

for COLONIAL BANK 

FEDERAL DEPOSIT INSURANCE 

CORPORATION as Receiver fer COLONIAL 

BANK 

T~MAS .:r: D~A?fe:pj ~VNSS'L 

··Print Name ami Title FJ)IC 
IN WITNESS WHERI~OF ~the parti.es hereto have caused this Agreement to be executed 

.by each of them or their duly authorized representatives on the dates be.~i afte:r subscribed. 

DATE: 

APPROVED AS TO FORM 

(b)(6} 

By: -=--~~~""""""'=,......- ............ -------------· PAULS, SIL.·s .1 

DATE: 

DATE: 

APPROVED AS TO ·FORM 

DATE: 

Attorney for Defendant TRADITIONAL 

ESCRO\V, INC. 

TRADITIONAL ESCROW1 INC., a California 

corporation 

By:~----­ Signature 

By: 

-::------....---···············-.. ~-

Pr·int Name ulid Title 

RJCKSEN ARBUTHNOT 

--,---,-- ---- -------···------------ ~1ARK D. UCKER 

Atfomey for Dcfl."::ld.ant KE:NT J. WENZEL 

dba WENZEL APPRAISAL SERVICES 

KENT J. WENZEL dba \VENZEL 

APJ~RAJSAC SERVICES 
IN WffNESS WHEREOF~ the parties h~-.o have c~erlthi~ Agreement to be executed 

hy each {)f than. or their du!y authur.izOO repre?)oomtives on· the dates hereinafter su~crlbed. 

DATE~ LAW OFFICE OF PAULS. SlENSKI 

APPROVED AS TO FORM 

DATE: 

(b )(6) ·······················································································································································································································································!· cow!tation 

By:L. ~~--------~--------~~--------~ 

DATE: 

Al~P.ROVED AS TO FORM 

DATE: 

, Si/fr~!:.iture . '"-..\ \ ~· 

--- <...-.. . ' . ~~ ~ t ..... \. . ·~ " .. J "' ~ . . . ... . -· ·----·-~ ~-\\ €,_, ~-"""~~f ~ .... : .. : .. ~~.~-~.~t--,1¢ \~,.)"~;:::;.tOE'~ 

Prirf1 Name ctrtd Title 

eRlCKSF.N' ARBti11L~OT 

KENT J. WENZEL dba WENZEL 

_.t\PPRAJS.l\L.SERVIGES