SETTLKM~NT AND .REI,EASJi: AGREEMENT 

This Settlement and Release Agreement ("Agreement") is made by, between, and among 

the following undersigned patties: 

The Plainti1T F~::de l Deposit Insurance Corporation as Receiver for Colonial flank 

("FDIC-R~~) and Boris Masarsky (the "Settling Defendant") (individually, the FDIC-R and the 

Settling Defendant may be referred to herein as "Party" and collectively as the "Parties"). 

RECITALS 

WHEREAS: 

Prior to August 14, 2009, Colonial Bank ("Bank") was a depository institution organized 

and existing under the laws of Alabama. 

On August 14, 2009, the Alabama State Banking Department closed the Bank and 

pursuant to 12 U.S.C. § 182l(c), the Federal Deposit Insurance Corporation was appointed 

Receiver. In accordance with 12 U.S.C. § 1821(d), the FDIC-R 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-R succeeded were the Bank's claims, demands, and 

causes of action that arc the subject of this Agreement. 

On August 10, 2012, the FDIC-R filed a complaint for money damages against the 

Settling Defendant. Those claims for damages arc now pending in the United States District 

Court for the Northern District of Illinois in Federal Deposit Insurance Corporation as Receiver 

for Colonial Bank v. Boris Masarsky and Linda M Surges, Case No. 1: 12-cv-06353 ("Action"). 

The Settling Defendant has denied liability in the Action. 

'l'he undersigned Parties deem it in their best interests to enter into this Agreement to 

avoid the uncertainty and expense of fmiher litigation. 

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: 
Sfl~CTION I: l)aymcnt to FDIC-R 

A. As an essential covenant and condition to this Agreement, on or before thirty (30) 

calendar days following the date the FDIC-R executes this Agreement, the Settling Defendant, 

by his insurance carrier, agrees to pay the FDIC-R the sum of seventy thousand dollars ($70,000) 

("the Settlement Payment"). 

B. The Settlement Payment shall he in the form of a check made payable to "RJ 

Landau Partners Client Trust Account," mailed to RJ I ,andau Partners PI J .C, Attn: Richard J. 

Landau, Esq. 5340 Plymouth Rd., Suite 200, Ann Arbor, Michigan 48105, Reference: Colonial 

Bank/Surges Settlement. 

In the event that the Settlement Payment is not delivered to the FDIC-R (or its counsel) 

by thirty (30) calendar days following the date the FDIC-R executes this Agreement, interest 

shall accme on all unpaid amounts at the rate of 5% per annum from thirty (30) calendar days 

following the date the FDIC-R executes this Agreement until the date of payment. 

C. If the FDIC-R does not receive the Settlement Payment in full on or before the 

date deterrnined by subsection A above, then the FDIC-R, in its sole discretion, shall have the 

right at any time prior to receipt of the Settlement Payment in full (including all accrued interest) 

to: 

1. Extend the period of time for the Settlement Payment, including interest 

accming from the date detennined by subsection A above, through the date of payment at a rate 

calculated in accordance with 26 U.S.C. § 6621(a)(3); or 

2. Enforce this Agreement, in which event the Settling Defendant agrees to 

jurisdiction in United States District Court fbr the Northern District of Illinois and to pay all of 

the FDIC-R's reasonable attomey's fees and costs expended in enforcing the terms of this 

Agreement; or 

3. Te1minate the Agreement, move to vacate any dismissal order, to which 

the Settling Defendant agrees to consent and re-institute an action on the FDIC-R's claims. The 

Settling Defendant further agrees to waive any defense based on any statute of limitations that 

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would bar any of the FDIC-R's claims and waive all objections, defenses, claims or 

counterclaims, and covenant and agree not to assert any objections, defenses, claims or 

counterclaims that did not exist or were otherwise unavailable as of the date this Agreement was 

fully executed; and/or 

4. Seck any other relief available to it in law or equity. 

Any extension oftime under Section I.C.l for delivery of the Settlement Payment or 

acceptance of a pot1ion of the Settlement Payment shall not prejudice the FDlC-R's rights to take 

any of the actions set forth in Section I.C.2 through I.C.4 at any time prior to receipt of 

Settlement Payment (including all accrued interest) in full. 

SECTION II: Stipulation and Dismissal 

Within ten business days after the latter of ( l) full execution of this Agreement by all of 

the Parties, and (2) receipt of the Settlement Payment, plus any accrued interest, the FDIC-R 

shall file a stipulation of dismissal with prejudice, executed by the attorneys for all Parties 

hereto, in the form attached hereto as Exhibit A, in the Action. 

SECTION Ill: Releases 

A The FDIC-R's R~_l~ases. 

Upon receipt of the Settlement Payment in full and except as provided in Section III.D., 

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

Inc. and the Settling Defendant, his heirs, executors, trustees, administrators, representatives, 

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, belonging to the FDIC-R, that 

arise from or relate to the causes of action alleged in the Action. 

B. The Settling Defendant's Releases. 

Effective simultaneously with the release granted in Section liLA. above, Real Mark, Inc. 

and the Settling Defendant, on behalf of himself and his heirs, executors, trustees, 

administrators, representatives, insurers, successors, and assigns, hereby releases and discharges 

the FDIC-R, and its employees, officers, directors, representatives, attorneys, successors and 

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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 causes of action alleged in 

the Action. 

C. Excw._tions fro~ R~lease~_Qy FDIC-R. 

1. 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 Defendant or any other person or entity for 

liability, if any, incurred as the maker, endorser or guarantor of any promissory 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 such claims acquired by FDIC-R as 

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

b. Against any person or entity not expressly released by the FDIC-R 

in this Agreement. 

2. Notwithstanding any other provision of this Agreement, nothing in this 

Agreement shall be construed or interpreted as limiting, waiving, releasing, or compromising the 

jurisdiction and authority of the Federal Deposit Insurance Corporation in the exercise of its 

supervisory or regulatory authority or to diminish its ability to institute administrative 

enforcement or other proceedings seeking removal, prohibition, or any other relief it is 

authorized to seek pursuant to its supervisory or regulatory authority against any person. 

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

docs not purpmt to waive, or intend to waive, any claims that could be brought by the United 

States through the Depattment of Justice, the United States Attorney's Office for any federal 

judicial district, or any other department or agency of the United States as defined by 18 U.S.C. § 

6. In addition, the FDIC-R specifically reserves the right to seck court-ordered restitution 

pursuant to the relevant provisions of the Mandatory Victims Restitution Act, 18 U.S.C. §§ 3322 

and 3663 ~l ~~g,_, if appropriate. 
SECTION IV: Representations and Acknowledgements 

A. A"!!~horized ~ignato_ri~~. All of the undersigned persons represent and warrant that 

they arc Parties hereto 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 

undersigned Parties and their respective heirs, executors, trustees, administrators, representatives, 

successors and assigns. 

B. j\dvi~_e of Couns~1 Each Party hereby acknowledges that he, she, or 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. 

C. No Assignment of Claims. The Patties represent and warrant that they have not 

assigned in any matter any ofthcir claims or rights to the Action. The Parties agree that they 

have relied on the representation that no Party has assigned its interest with respect to the 

foregoing as a condition to the execution of this Agreement. 

SECTION V: Reasonable Cooperation 

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, filing, recording, and entry, 

of any documents necessary to conclude the Action and to otherwise perform the terms of this 

Agreement. 

SECTION VI: Other Matters 

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 defenses, that this Agreement is not an admission or evidence of liability or infirmity 

by any of them regarding any claim or defense, and that the Agreement shall not be offered or 

received in evidence by or against any Party except to enforce its terms. 

B. Execu~iQn in_(:;ount~rparts. This Agreement may be executed in counterparts by 

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one or more 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; and each such 

counterpart, upon execution and delivery, shall be deemed a complete original, binding the 

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

C. ~hoic_e of La,w. This Agreement shall be interpreted, construed and enforced 

according to applicable federal law, or in its absence, the laws of the State oflllinois. 

D. Noti~e.:;i. Any notices required hereunder shall be sent by registered mail, first 

class, return receipt requested, and by email, to the following: 

If to the FDIC-R: Richard J. Landau, RJ Landau Partners PLLC, 5340 Plymouth Rd., 

Suite 200, Ann Arbor, MI 481 05; Phone: (734) 865-1585; Email :I m·l· 

If to the Settling Defendant: Paige M. Necl, Clausen Miller P.C., 10 South La Salle 

Street, Chicago, IL 60603; Phone: (312) 606-7852; Email: I ••••••••••••••••••••••••••••m•mm•m•l•••••• ••••••••••••••••••••••••••••••••• 

E. Entire Agreement and Amendments. This Agreement constitutes the entire 

(b)(6) ··············· ................. ,. 

(b)(6) ············· .................. . 

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

set forth herein and supersedes any prior agreements or understandings. This Agreement may 

not be amended or modified, nor may any of its provisions be waived, except in writing signed 

by the Parties bound thereby, or by their respective authorized attorney(s), or other 

representative( s ). 

F. Titles and Captions. All section titles and captions contained in this Agreement 

are for convenience only and shall not affect the interpretation of this Agreement. 

G. No Confidentiality. The undersigned Parties acknowledge that this Agreement 

shall not be confidential and will be disclosed pursuant to the Federal Deposit Insurance 

Corporation's applicable policies, procedures, and other legal requirements. 

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

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

6 
Date: 

Date: 

Date: 

FEDERAL DEPOSIT INSURANCE CORPORATION AS 

RECEIVER FOR COLONIAl, 11ANK 

BY: 

TITLE: - . 

PRINT NAME: Tt-Joi(,;(A' V. () tYlle;J 

BORIS MASARSKY 

BY: 

PRJNT NAME: __ _ 

REAL MARK, INC. 

BY: 

TITLE: 

PRINT NAME: ------

7 
Dite: ··········--

FEDERAL DEPOSIT lNSURANCE CORPORATION AS 

RECEIVER FOR COLONIAL BANK 

BY: 

TITLE: 

PR[NT NAME: 

BORIS MASARSKY 

BY; 

PRINT NAME: !1C-~~6~ 1$ /lf!{.SJ}/.~_5~/(J/" i'. 

REAL MARK, INC. 

BY: 

. . I 

TtfLE: 

1 
IN THE UNITED STATES DISTRICT COURT 

FOR TilE NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

FEDERAl, DEPOSIT INSURANCE 

CORPORATION, AS RECEIVER FOR 

COLONIAL BANK, 

) 

) 

) 

Plaintiff, ) No. 12-CV-06353 

v. ) 

) Chief Judge: I Ion. Ruben Castillo 

BORIS MASARSKY, AN INDIVIDUAL AND 

LINDA M. SURGES, AN INDIVIDUAL, 

) Mag. Judge: Hon. Jeffrey Cole 

) 

) 

Defendants. ) 

STIPULATION TO DISMISS WITH PRE .JUDICE 

This cause coming beiore the Court upon the parties' joint request for the Court to enter a 

Stipulation to Dismiss with prejudice of all claims asserted or could have been asserted against 

Defendant Boris Masarsky in the above-captioned action, due notice having been given, and the 

Court being fully advised in its Premises: 

IT IS IJF:RI BY ORDERED that: 

1) As a result of the payment made by, or on behalf of Boris Masarsky to Plaintiii, the 

claims of the Plaintiff, Federal Deposit Insurance Corporation, as Receiver for 

Colonial Bank ("FDIC-R") against Boris Masarsky are dismissed with prejudice, with 

each party to bear their own costs and fees. 

2) Pursuant to the Illinois Joint Tortfcasor Contribution Act, 740 ILCS 100/0.01, the 

Com1 finds that the settlement between the FDJC-R and Boris Masarsky is fair and 

reasonable and was entered into in good faith as contemplated by the terms and 

language of the Joint Tortfeasor Contribution Act. The settlement was reached 

EXHIBIT A 

1458581.1 
DATED: 

1458581.1 

during an extensive pretrial settlement conference before Magistrate Judge Jeffrey 

Cole. 

ENTER: 

CHIEF JUDGE RUBEN CASTILLO 

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EXHIBIT A