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8:07-cv-00254-JFB -TDT Doc # 385 Filed: 09/01/10 Page 1 of 14 - Page ID # 3590 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA LYLE BREHM, on behalf of Willard F. Case No. 8:07-CV-254 Brehm, Gladys M. Brehm, the Willard F. Brehm Revocable Trust and the Gladys M. (CLASS ACTION) Brehm Revocable Trust, REX WELDON, on behalf of Nancy Weldon, Robert Clark Weldon and the Robert Clark Weldon and Nancy Weldon Trust, JILL SCHUNEMAN, on behalf of herself and the Jill Schuneman Living Trust, and DAVID BUCKLEY, on behalf of himself, the Robert L. McKissick Irrevocable Trust and the Brenda L. Buckley Revocable Trust, collectively on behalf of themselves and all others similarly situated, Plaintiffs, AFFIDAVIT OF V. GREGORY C. SCAGLIONE CAPITAL GROWTH FINANCIAL, LLC, AND REBECCA ENGLE, BRIAN SCHUSTER, J. L. SPRAY ENGLE & SCHUSTER FINANCIAL, INC., AMERICAN CAPITAL CORPORATION, ROYAL PALM CAPITAL GROUP, INC., ALAN JACOBS, MICHAEL JACOBS, GERALD PARKER, JOHN BOYCE, GERALDINE MAGALNICK, PATRICK HARRINGTON, PETER KIRSCHNER, and STARK WINTER SCHENKEIN & CO., LLP, Defendants. STATE OF NEBRASKA ) )ss. COUNTY OF DOUGLAS ) We, Gregory C. Scaglione and J. L. Spray, first duly sworn on oath, state as follows: 1. Greg is an attorney with the law firm of Koley Jessen P.C., L.L.C., in Omaha, Nebraska. He is licensed to practice law in Nebraska, and is admitted before

Transcript of 8:07-cv-00254-JFB -TDT Doc # 385 Filed: 09/01/10 Page 1 of 14 -...

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IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF NEBRASKA

LYLE BREHM, on behalf of Willard F. Case No. 8:07-CV-254Brehm, Gladys M. Brehm, the Willard F.Brehm Revocable Trust and the Gladys M. (CLASS ACTION)Brehm Revocable Trust, REX WELDON,on behalf of Nancy Weldon, Robert ClarkWeldon and the Robert Clark Weldon andNancy Weldon Trust, JILL SCHUNEMAN,on behalf of herself and the JillSchuneman Living Trust, and DAVIDBUCKLEY, on behalf of himself, theRobert L. McKissick Irrevocable Trust andthe Brenda L. Buckley Revocable Trust,collectively on behalf of themselves and allothers similarly situated,

Plaintiffs,

AFFIDAVIT OFV. GREGORY C. SCAGLIONE

CAPITAL GROWTH FINANCIAL, LLC, AND

REBECCA ENGLE, BRIAN SCHUSTER, J. L. SPRAY

ENGLE & SCHUSTER FINANCIAL, INC.,AMERICAN CAPITAL CORPORATION,ROYAL PALM CAPITAL GROUP, INC.,ALAN JACOBS, MICHAEL JACOBS,GERALD PARKER, JOHN BOYCE,GERALDINE MAGALNICK, PATRICKHARRINGTON, PETER KIRSCHNER, andSTARK WINTER SCHENKEIN & CO.,LLP,

Defendants.STATE OF NEBRASKA )

)ss.COUNTY OF DOUGLAS )

We, Gregory C. Scaglione and J. L. Spray, first duly sworn on oath, state as

follows:

1. Greg is an attorney with the law firm of Koley Jessen P.C., L.L.C., in

Omaha, Nebraska. He is licensed to practice law in Nebraska, and is admitted before

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the United States District Court for Nebraska, Greg is one of the attorneys representing

the Plaintiffs in the above-captioned action. He is familiar with the above-captioned

action, competent to testify to the facts set forth herein and he makes all statements

herein from his personal knowledge,

2. J. L. is an attorney with the law firm of Mattson Rickets Davies Stewart

Calkins in Lincoln, Nebraska. J. L, is licensed to practice law in the State of Nebraska

and he is admitted before all of its courts. He is one of the attorneys representing the

Lead Plaintiffs in the above captioned action. He make all statements herein from his

own personal knowledge.

3. Kirschner has agreed to produce both in writing and under sworn

testimony, their personal financial circumstances, assets and liabilities, and fully

cooperate in disclosing and explaining such circumstances. All of this was

memorialized in a term sheet that I prepared in conjunction with Co-Lead Counsel and

transmitted to Kirschner.

4, Among other items, Kirschner agreed to use good faith efforts to recall

and learn of facts and documents that would assist the Class in making claims against

Defendants Gerald Parker, John Boyce, Geraldine Magalnick, Patrick Harrington and

Stark Winter and to disclose and produce such information and related documentation

to the Class so as to assist them in prosecuting their claims against such Defendants

and collecting on any judgments obtained, all at no expense to the Class.

5. Over the next several months, Co-Lead Counsel received detailed

financial information from Kirschner, including his personal tax returns and balance

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sheets, including balance sheets and debt schedules, which presented a grim picture of

the personal finances of Kirschner.

6. We have reviewed and analyzed in detail all of the financial information

provided and participated in several conferences with Co-Lead Counsel regarding how

best to maximize recovery for the Class and to protect the Class' interests.

7. Because it had become clear that resolution by settlement was the best

way to secure funds for the class and provide certainty for the parties, the parties

continued to negotiate the specific terms of a proposed settlement, which would

maximize Kirschner's financial contribution.

8. We are of the opinion that based on the claims and defenses in this

action, its procedural posture and the anticipated time and expense of protracted

litigation with Kirschner, Kirschner's poor financial condition and the absence of

insurance coverage for him, that the proposed partial settlement contained in the

Settlement Agreement is in the best interests of the plaintiff Class.

9. Numerous members of the Class are elderly.

10. Various members of the Class have significant health issues.

11. Attached as Exhibit "A" is a true and correct copy of the Settlement

Agreement executed and entered into with Peter Kirschner, which is the subject of this

Court's review and requested approval.

FURTHER AFFIANTS SAYETH NOT.

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Dated this 3/day of August 2010,

&Gregory C. agilone

Subscribed and acknowledged before me this ,/ day of August-2010, by

Gregory C, Scagiione.

GENVA1.NOTARY - Slal0of NabrasM^rCINDY F, MEMEN ^^ I

. Nly Comm, ^, aeo. oa, 2012 _ _ ^ - - . , ......_ _w_..' % .No Publi

/,

. Spray

Subscribed and acknowledged before me this t day of M" 2010, by J,

L. Spray,

G€i+IEM!#iQTAt;Y•Slab STOK raska (^'''Q'^r 4. A^OMnx^Lrn x. sro>Kxla -^

My Comm. Exp. Mank24,2014 Notary Public

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SETTLEMENT AGREEMENT

This Settlement Agreement ("settlement Agreement") is entered into effective as of11A Y 2010, by and between the following:

KIRSCHNER.- Peter Kirschner, an individual and resident of the State ofFlorida.

CD-LEADPLAINTIFFS: Co-Lead Plaintiffs are Lyle Brehm, David Buckley, Rex

Weldon. and Jill Schuneman. The Co-Lead Plaintiffs arerepresented by the law firms of Koley Jessen P.C., L.L.O.,Mattson, Ricketts, Davies, Stewart & Calkins, and Lieben,Whitted, Houghton, Slowiaczck & Cavanagh, P.C., L.L.O,

DEFINITIONS

For purposes of this Settlement Agreement; the following terms shall have thefollowing meanings:

"CO-LEAD PLAINTIFFS" shall mean Lyle Brehm, David Buckley, RexWeldon and .Till Schuneman who were appointed co-lead plaintiffs by the UnitedStates District Court for the District of Nebraska in the Order dated October 11,2007, (Filing No. 111) in the matter of Brehin, et al. v Ca ital GroyELh Fin vialInc- et k1„(Case No. 07-CV-00254).

• "CO-LEAD PLAINTIFFS' COUNSEL” shall mean the law firms of KoleyJessen P;C., L,L,O., Mattson, Ricketts, Davies, Stewart & Calkins, and Lieben,Whitted, Houghton, Slowiaczek & Cavanagh, P.C., L.L.O. who wereappointed co-lead plaintiffs counsel by the 'United States District Court for theDistrict of Nebraska in the Order dated October 11, 2007, (Filing No. 111) inthe #natter of Brehm, at al. v, Capital Growth Financial, Inc, et al S, (Case No.07-CV-00254).

« "CLASS ACTION" shall mean B tal. v Capital Grg Finan i 1' Inc.Pt al., (Case No. 07-CV-00254) currently pending in the United States DistrictCourt for the District ofNebraska,

«

"PROPOSED CLASS" shall mean the class identified for certification in theCLASS ACTION.

« KIRSCHNER" shall refer to Peter Kirschner, a defendant in the CLASSACTION,

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"STATE CLASS ACTION" shall mean Willard Breluu, et al. v. First Clearing,L.L.C., (Case No. CI09-325) currently pending in the District Court of otoeCounty, Nebraska. The Class has not been cortified in this particular case.

RECITALS

It is the intention of KIRSCHNER to settlo out of the CLASS ACTION and theSTATE CLASS ACTION in exchange for a partial release and dismissal without prejudice,subject to the terms of this Settlement Agreement.

It is the intention of CO-LEAD PLAINTIFFS to settle with KIRSCHNER inexchange for payment, assignment of claims to CO LEAD PLAINTIFFS, and all other termsset forth in this Settlement Agreement.

Mather than continue the CLASS ACTION and the STATE CLASS AC'T'IONagainst KIRSCHNER and incur significant time and expense, the parties wish to resolve alldisputes between them and to avoid further litigation expense.

It is the understanding of the parties that KIRSCHNER may have claims againstother individuals and/or entities. KIRSCHNER believes that such claims are (a)assignable,. aud ' (b) meritorious. KIRSCHNER would like to assign these claims to CO-LEAD PLAINTIFFS, and provide full and complete cooperation to CO-LEADPLAINTIFF'S' COUNSEL in prosecuting any such claims in the name of KIRSCHNER.

IT IS AGREED AS FOLLOWS:

' COURT APPROVAL. This 4zf F 1.._. Alt, x,gl,eement is suvjkvL 4..„^r^ , al of the Uniteu atatiea vfstrict; Court for the District of Nebraska in the Class Action.

In the event that the Co ull !Ides not approve any part of this Settlement Agreement, the partiesagree that this enjire Settlement Agreement shall be null and void and the parties shall proceedwith litigation of the CLASS ACTION.

2. .INA CIAL ISCL SURE,S. KIRSCHNER t° <!^ previously provided toCO-LEAD FLAINTIIYFS COUNSEL certain financial disclosz,,us which were requested bycounsel. The documents provided by KIRSCHNER to counsel ^ onsist of the followingdisclosures:

u. mhp 2005 Return of Partnership Income of PETER KIRSCHNER.

b, The 2006 U.S. Return of Partn(, : - _ ,,, " ,^ ', tCIRSC7INER.

c, The 2008 Federal Income Tax Returns of PETER and GILLIANKIRSCHNER.

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d. The 2009 U.S. Income Tax Return for an S Corporation of PETERKIRSCHNER.

e. An Affidavit of Financial Information provided by PETER KIRSC14NERexecuted on May 28, 2010 consisting of 8 pages.

KIRSCHNER, does hereby represent, warrant and affirm that the financial disclosures assubmitted by Win are true, accurate and correct and fully and fairly set forth the financialaffairs, assets and liabilities as of the date of execution.

KIRSCHNER has not yet filed federal income tax returns for the year 2006.KIRSCHNER has provided CO-LEAD PLAINTIFFS' COUNSEL with copies of extension

5 requests for the 2007, 2008 and 2009 federal income tax returns. Copies of the 2006,2007, 2008, and 2009 federal income tax returns shall be provided to CO-LEADPLAINTIFF'S COUNSEL within 20 days after filing.

The parties agree that if KIRSCHNER provides false, inaccurate or misleadinginformation regarding his personal finances, then CO-LEAD PLAINTIFFS shall be entitledto cancel this Settlement Agreement, CO-LEAD PLAINTIFFS shall have the right to-proceed with the CLASS ACTION and the STATE CLASS AC'T'ION againstKIRSCHNER in which event this entire Settlement Agreement shall be null and void,

3. PAYMENT. Upon execution of this Settlement Agreement and approval bythe U.S. District Court for the District of Nebraska, KIRSCHNER shall pay CO-LEADPLAINTIFFS not lass than $5,000.00, which shall be payable at the -rate of $500.00 permonth beginning on September 1, 2010, and continuing on the first day of each monththereafter until paid in full, Simple interest shall accrue on the principal amount due at therate of 3% per annum, and the indebtedness may be pre-paid without penalty. After theprincipal amount of $5,000,€10 has been paid, the- entire amount of accrued interest shall bepaid on the first day of the month thereafter. failure to make a scheduled payment resultsin the entire principal balance, together with interest, to became due and payableimmediately and shall result in the entry of default judgment against KIRSCHNER in thatamount.

4. INS[JR.ANgF, POLICIES,. To the extent that any claims asserted by theCO-LEAD PLAINTIFFS may be covered under an insurance policy, the CO-LEADPLAINTIFFS specifically reserve any and all rights to assert claims against KIRSCHNERup to the full amount of CO-LEAD PLAINTIFFS" claims, notwithstanding and in additionto the amount to be paid pursuant to paragraph 3 above.

5, STATUTE OF LIMITATIONS, KIRSCHNER. agrees to waive and tollany statute of limitations applicable to any claim CO-LEAD PLAINTIFFS or thePROPOSED CLASS may have against KIRSCHNER, including any claims arising out ofbreach of the obligations under this Settlement Agreement, false or inaccurate financialdisclosures, or any claims which may be asserted by reason of the termination of thisSettlement Agreement. KIRSCHNER shall execute a Tolling Agreement, attached as

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Exhibit "A". The Tolling Agreement shall be executed and effective upon approval of theSettlement Agreement by the District Court for the District of Nebraska in the CLASSACTION, and the satisfaction of all conditions set forth in this Settlement Agreement.

S. WITHD - A^NVAL 'OAF' ALL PENDING MOTIONS. KIRSCHNER agreesthat he shall withdraw all motions currently pending in the CLASS ACTION or theSTATE CLASS ACTION.

7. PISMI SAL OF PENDING ACTIONS. In consideration of theassignments, payments, representations and obligations of KIRSCHNER. under thisSettlement Agreement, CO-LEAD PLAINTIFFS shall dismiss without prejudice the claimsidentified in the CLASS ACTION and the STATE CLASS ACTION as to KIRSCHNER.Counsel for the parties shall execute such documents as are necessary to effectuate thedismissal without prejudice. CO-LEAD PLAINTIFFS' COUNSEL will also dismiss withoutprejudice the claims against KIRSCIINF.;Ix in the CLASS ACTION and the STATE CLASSACTION.

The claims identified in the CLASS ACTION and the STATE CLASS ACTION as toKIRSCHNER, and the claims against KIRSCHNER in the pending actions, will bereleased with prejudice, and forever barred, upon the conclusion of the prosecution of theCLASS ACTION and the STATE CLASS ACTION and pursuit of the assigned claims, tothe extent possible, and KIRSCHNER shall be provided an Acknowledgement that he hascomplied with the terms of this Settlement Agreement.

The dismissal of the CLASS ACTION, the STATE CLASS ACTION and other actions,is specifically conditioned upon satisfaction of all conditions set forth in this SettlementAgreement and the completion of all obligations of KIRSCHNER pursuant to thisSettlement Agreement.

8. COVENANT NOT TO SUR UR CO T. Subject to the obligations ofKIRSCHNER as set forth in this Settlement Agreement, and further conditioned uponapproval by the court in the CLASS ACTION, the CO-LEAD PLAINTIFFS, in considerationof the payments, obligations and assignments provided in this Settlement Agreement, agreethat after dismissal of KIRSCHNER from the CLASS ACTION and the STATE CLASSACTION, the CO -LEAD PLAINTIFFS will not institute any action or suit at law or equityor assert any claim, demand, action or cause of action for damages, whether in litigation orarbitration, for claims set forth in the CLASS ACTION and the STATE CLASS ACTIONagainst KIRSCHNER. Further, CO-LEAD PLAINTIFFS shall not seek any execution, levy,attachment. or other efforts of collection against KIRSCHNER for any damage claims orrecoveries which may be awarded in the CLASS ACTION and the STATE CLASS ACTION.It is intended that no further proceedings, execution or recovery shall be had by the CO-LEAD PLAINTIFFS against KIRSCHNER for any acts, omissions, claims or liabilitiesagainst KIRSCHNER, except as specifically provided in this Settlement Agreement.

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This covenant shall become sffeetive upon approval by the District Court of Nebraska inthe CLASS ACTION and upon payment as provided in this Settlement Agreement. This isintended . as a covenant not to sue or collect. and not as a release of claims againstKIRSCHNER,

9< RESERVATION 01^ CLAIMS. 'Notwithstanding the oovenant not to sue orcollect, the CO-LEAD PLAINTIFFS and the PROPOSED CLASS specifically reserve allrights of action, claims, demands against any and all other persons except forKIRSCI-INER. Further, the covenant not to sue or collect does not release, waiver or impairany of the following claims:

a. Any claims which may be asserted against any other party in theCLASS ACTION, STATE CLASS ACTION, or other pending actions;

b. Any claims against KIRSCHNER to the extent that such claims may becovered by insurance;

c. Any claims against KIRSCHNER in the event that this SettlementAgreement is terminated for breach of any obligation on the part ofKIRSCHNER as provided in this Settlement Agreement; 'and

d. Any claims which any other party nray have against KIRSCHNFR forcontribution, indemnity, cross claim or other similar type of action.

10. ASSISTANCE WITH OTHER CLAIMS. KIRSCHNER will cooperatewith CO-LEAD PLAINTIFFS by providing testimony, documents, electronic records,information and general advice and counsel regarding the claims asserted in the CLASSACTION and the STATE CLASS ACTION at the expense of KIRSCHNER and at a mutuallyagreeable time(s) and place(s) and at no expense or charge. KIRSCHNER agrees to provideassistance and use good faith of bils to recall and learn of facts and documents that wouldassist the CO-LEAD PLAINTIFFS and the PROPOSED CLASS in making claims againstthird parties including Gerald Parker, John Boyce, Geraldine Magalnick, Patrick Harrington,.acrd Stark Winter or others in the CLASS ACTION and the STATE CLASS ACTION.

It, COMYWENTJ A ►,LITY. CO-LEAD PLAINTIFFS and KIRSCHNER shalleach maintain the terms of this Settlement Agreement in strict confidence, and the termsshall not be disclosed to anyone other than the Nebraska District Court, members of thePROPOSED CLASS, officers and directors of the parties, counsel or accountants, except tothe extent necessary to comply with legal process, court orders or applicable laves andregulations or to enforce the terms of the Settlement Agreement, CO-LEAD PLAINTIFFSshall not disclose the nature or the amount of the payment made by KIRSCHNER except asmay be required by law.

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12. AMENDMENT, . This Settlement_ Agreement shall not be amended ormodified in any spanner except in writing signed by all of the parties,

13. R.EI<NSTATEIVY)1i NT OF CLASS ACTION. CO-LEAD PLAINTIFF'Sshall retain the right to reinstate the CLASS ACTION, the STATE CLASS ACTION, or anypending action in the event KIRSCHNER breaches any , part of this Settlement Agreement,including but not limited to (a) providing false or misleading financial Information, or (b) anyfailure to cooperate with CO-LEAD PLAINTIFFS' COLNSFL; or (C) failure to make requiredpayments, The parties agree that any dispute regarding; reinstatement or breach of thisSettlement Agreement shall be heard and determined by the United States District Court forthe'District of Nebraska in the CLASS ACTION,

14. C,Q-DjSENT TO JURI2 DIICT)ION, KIRSCHNER does hereby irrevocablyacknowledge and consent to the personal jurisdiction of the federal and state courts ofNebraska, KIRSCHNER does hereby irrevocably and unconditionally submit himself to thenon-exclusive jurisdiction of any Nebraska court or federal court in Ncbxaska with respect toany dispute, disagreement, controversy or issues relating to this Settle ment Agreement, or withrespect to the CLASS ACTION, the STATE CLASS ACTION or other pending litigation inNebraska in the event of reinstatement upon breach of any part of this Settlement Agreement,

15. MISCELLANEOUS,

a. The parties hereby acknowledge, declare, represent, warrant andagree that:

1. They have not assigned, transferred or purported to assign ortransfer to any other person or entity any liability, claim,demand, action, cause of action or right herein released,

2. They have had the opportunity to consult independent counselin connection with the negotiation of this SettlementAgreement.

3. They have the power and authority to contract for and carryout the obligations contained in this Settlement Agreement.

b. This Settlement Agreement may be executed in counterparts, and allso-executed shall constitute one agreement, binding on bath ,parties.

C. This Settlement Agreement shall be governed by and construed inaccordance with the laws of Nebraska, without regard to phnciples ofconflicts of laws. The parties agree that the State of Nebraska shall bethe foram for any dispute arising from this Settlement Agreement.

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d. This Settlement Agreement constitutes the entire agreement betweenthe Patties and supersedes any and al'1 prior agreements, written or oral,express or implied.

c. The recitals set forth above are true and correct to the best of the parties,knowledge,

f; This Settlement Agreernermt excludes, among others, Rebecca Engle,Brian Schuster, and the firm of Engle & Schuster. Any claims not referredto herein are expressly reserved by CO-LEAD PLAINTIFFS,

Date: ^ 1301 rX c ( 0 , 2010.

PETER K CI1N R

STATE OF FLORIDA )).ss.

COUNTY OF )

Subscribed and sworn to before nie this day ,of 2010,

Notary Public

CO-LEAD PLAINTIFFS

By:GREGORY C. "`AGLIOKOLEY .lE ,N P.C., L.L.O.One Pacific Place, Suite 8001125 South 103'4 StreetOmaha, Nebraska 68124-1079CO-LEAD PLAMTiFFS' COUNSEL

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J.L. SPRAYMATTSON, RICKETTS, DAVIES,STEWART & CALKINS131 South 13"' Street, Suite 1200Lincoln., Nebraska 68508-1901CO-LEAD PLAINTIFFS' COUNSEL

JAMES B. CAVANAGHLIEBEN, WHITTED, HOUGHTON,SL OWIACZEK & CAVANAGII, P.C.,L.L.O,100 Scoular Building2027 Dodge StreetOmaha, Nebraska 68102CO-LEAD PLAINTIFFS' COUNSEL

SatSSG.T

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TOLLING AGREEMENT

This Tolling Agreement (the "Agreement"), dated effective this 28th day of June 2007(the "Effective Date"), is made and entered into by and between meter Kirschner, hispredecessors, successors, assigns, heirs, agents and representatives (collectively"Defendants") and Willard Brehm, David Buckley, Jill Schuneman, and Rex Weldon, theirpredecessors, successors, assigns, heirs, agents and representatives (collectively "Co-LeadPlaintiffs"),

In consideration of the promises and the mutual promises contained in this Agreementand other good and valuable consideration, the receipt and sufflclency of which are herebyacknowledged, the parties agree as follows:

1. From the Effective Date and continuing until terminated by Co-Lead Plaintiffs, theparties agree that such. period shall not be Included in determining the applicability of anystatutes of limitation, statute of repose, contractual limitations or repose, eII&Ility, lathes orother defense based on the lapse of time In any claims, causes, suits or arbitrations which havebeen or which may be commenced by the Co-Lead Plaintiffs In connection with any claims,causes,. suits or arbitrations of whatever kind and nature Co-tread Plaintiffs may have againstthe Defendants (collectively the "Claims"),

2. The Co-Lead Plaintiffs agree that they will forebear from filing any suits orarbitrations against Defendants during the term of this agreement. This Agreement may only bemodified as provided for in the Settlement Agreement, executed contemporaneously herewith.Only Co-Lead plaintiffs, through one of their attorneys, may terminate this Tolling Agreement bygiving three (3) days written notice to Defendants.

3. Nothing in this Agreement or in the circumstances which give rise to thisAgreement shall be construed as an acknowledgment by any party that any Claims was or wasnot barred or was or was not about to be barred by the Claims based on the lapse of time as ofthe Effective Date.

4. This Agreement shall not operate as an admission of liability or wrongdoing ofany nature by any party, or as an admission that there is any element of or basis for anypurported Claims that has been or which might be asserted. Nor shall this Agreement bedeemed an admission by either party as to the proper jurisdiction or forum for any future claimsor as to the applicable law governing any such dispute.

5. Any Termination Notice shall be deemed sufficient If sent by registered orcertified mail, return receipt requested, or by e-mail addressed as follows, or addressed to suchother place as a party shall designate in writing:

As to Co-tread Plaintiffs:

Gregory C. Scaglione -Koley Jessen P,C., L L.O._1125 South 10TO Street, Suite 800Omaha, NE 65124-1079grog, scaglione dgkoleyjessen.com

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As to Defendants:

Peter Kirschner7258 Encina LaneCoca Raton, FL 33433Peter55kQgmall,com

Any Termination Notice shall be deemed given three (3) days after transmission.

6. This Agreement constitutes the entire agreement of the parties and supercedesall prior negotiations, commitments, representations and undertakings of the parties with respectto the subject matter hereof whether written, oral or otherwise. This Agreement may bemodified, amended or supplemented only by a written instrument signed by all the parties.

7. This Agreement may be executed in two or more counterparts, each of whichshall be deemed an original, but which together shall constitute one and the some instrument.The parties agree that they may execute this Agreement and other documents, contemplated by •this Agreement and exchange, on the dater of this Agreement, counterparts of such documentsby means of facsimile transmission, and that the receipt of such executed counterparts shall bebinding on the parties hereto and shall be construed as originals. The parties further agree thatthey shall promptly exchange original versions of this Agreement and all other documentscontemplated by this Agreement that were executed and exchanged by facsirn lie transmission.

8. Each of the parties hereto represents and warrants that the person signing thisAgreement on Its behalf Is authori7,ed to bind It with respect to the matters contained herein,

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to beexecuted effective the date set forth above.

Willard F, Brehm, David Buckley, JillSohuneman and Rex Weldon, Co-LeadPlaintiffs

By: Gregory G. Scaglione, their attorney Peer Y irschn: r

429606.1