marvin a. katz, et al. v. mrt, llc, et al. 07-cv-61438...

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 1 of 32 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA 07-6'43 8-CIV-COHN MARVIN A. KATZ, et al. On behalf of himself and all others similarly situated, Plaintiff, v. MRT, LLC, MRT HOLDINGS, LLC, JAMES CLEMENTS, ZEINA SMIDI AND ANN B. BRADSHAW, Defendants. / PLAINTIFFS’ MOTION TO APPROVE SETTLEMENT Plaintiffs, through undersigned counsel, hereby move to approve the settlement, and states: 1. This is a class action, by and for small investors who lost their savings through a Ponzi scheme fraud wherein investors were solicited to trade “FOREX” investments in exchange for promised interest rates as high as over eleven percent a month. The fraud was perpetrated by and through the Defendants ' , financial institutions who undertook fiduciary obligations allowing them to reap both significant fees and investors’ trust, only to stand by silently, allowing the Ponzi scheme principals to obtain approximately over 50 million of investors’ money, according to a report from the company (Exhibit A to the Complaint), commonly known as MRT. 2. The class, through its representatives, have reached a settlement that requires the approval of '. Defaults have been entered against Defendants MRT Holdings LLC, James Clements and Zeina Smidi. Defendants Ann Bradshaw and MRT LLC were dismissed for lack of service. However, Plaintiffs recently learned that MRT LLC was in fact served on March 6, 2008, and ask the Court to set aside its order of dismissal as to MRT LLC, and enter a default against it as well.

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Page 1: Marvin A. Katz, et al. v. MRT, LLC, et al. 07-CV-61438 ...securities.stanford.edu/.../2009810_f01t_07CV61438.pdf · Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009

Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 1 of 32

UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDA

07-6'43 8-CIV-COHN

MARVIN A. KATZ, et al. On behalfof himself and all others similarly situated,

Plaintiff,

v.

MRT, LLC, MRT HOLDINGS, LLC, JAMESCLEMENTS, ZEINA SMIDI AND ANN B.BRADSHAW,

Defendants.

/

PLAINTIFFS’ MOTION TO APPROVE SETTLEMENT

Plaintiffs, through undersigned counsel, hereby move to approve the settlement, and states:

1. This is a class action, by and for small investors who lost their savings through a Ponzi

scheme fraud wherein investors were solicited to trade “FOREX” investments in exchange for

promised interest rates as high as over eleven percent a month. The fraud was perpetrated by

and through the Defendants ' , financial institutions who undertook fiduciary obligations

allowing them to reap both significant fees and investors’ trust, only to stand by silently,

allowing the Ponzi scheme principals to obtain approximately over 50 million of investors’

money, according to a report from the company (Exhibit A to the Complaint), commonly

known as MRT.

2. The class, through its representatives, have reached a settlement that requires the approval of

'. Defaults have been entered against Defendants MRT Holdings LLC, James Clements andZeina Smidi. Defendants Ann Bradshaw and MRT LLC were dismissed for lack of service. However,Plaintiffs recently learned that MRT LLC was in fact served on March 6, 2008, and ask the Court toset aside its order of dismissal as to MRT LLC, and enter a default against it as well.

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 2 of 32

this court. The settlement provides that the Defendants, except for Ann Bradshaw, who was

not served, have agreed to:

a. the entry of a Final Judgment for $50 million dollars.

b. the cooperation of the Defendants to help locate the missing money;

c. the turnover of business records critical to finding the missing investor money;

d. the opening of supplemental proceedings, to allow for the suit against parties who

received millions of dollars, believed to be fraudulently transferred.

3. This settlement is reasonable and in the best interests of the parties. It provides for a monetary

judgment. The best that any investor could hope for in this case was to prevail at trial, and

obtain a judgment for the amounts owed, in any event. The second step is to try to collect on

that judgment. This settlement accomplishes the goal of obtaining the judgment, and the

cooperation of the Defendants to locate the missing money. In exchange, the Defendants, if

the Defendants provide material cooperation to locate the missing money, the cooperating

party will obtain a credit of 20 cents of every dollar collected against the Final Judgment

obtained in this action. Moreover, if the ultimate accounting shows less than $50 million

invested in the scheme, then the Plaintiffs will ask this court to reduce the Judgment to such

lesser amount that the accounting reveals. Of course, if the Defendants do not cooperate, they

get no credit against the Judgment, and no reduction of the Judgment amount.

4. Under Rule 23(e)(1)(A), this court must approve the settlement, and as part of this motion, it

is being submitted to the class members. Under the rule, the Plaintiffs request that the Court

find that the settlement, is “fair, reasonable and adequate.”

5. REQUEST FOR HEARING DATE: Plaintiffs request a hearing date to be set by the Court,

sometime during the week of October 12, 2009, to allow any of the class members to appear

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 3 of 32

and voice their objections. Once the Court date is set, Plaintiffs’ counsel will sent out a notice

of the hearing and proposed settlement as part of the mailing, and notice of the hearing as part

of a public relations release.

6. The proposed notice to be mailed to class members is appended hereto as Exhibit A.

7. The proposed notice of the hearing on the motion to approve settlement is appended hereto

as Exhibit B.

8. The Settlement Agreement is appended hereto as Exhibit C.

9. Plaintiffs’ counsel will also request, at the hearing, a contingency fee to be paid upon

collection of the Final Judgment, or any part thereof, of 25% of any amounts collected, plus

costs, not to exceed $2,000, with interest thereon until collected.

10. Certificate of Good Faith: This motion has been agreed to by the Defendants’ counsel as part

of the overall settlement.

WHEREFOR, Plaintiffs request that the Court set a hearing date, to approve the form of the

notices, and for such other relief the Court deems proper.

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that the original was filed with the clerk of court via CM/ECF, which

will provide a copy to to Inger Garcia, Esq., counsel to Zeina Smidi, James Clements, MRT LLC and

MRT Holdings LLC, 533 NE 3 rd Ave. Suite 2, Ft. Lauderdale, FL 33394, [email protected] this 10th

day of August, 2009.

By: ss//Jeffrey R. Sonn Jeffrey R. Sonn, EsquireFlorida Bar Number: [email protected] & EREZ, PLCBroward Financial Centre500 E. Broward Blvd., Suite 1500Fort Lauderdale, FL 33394

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 4 of 32

Telephone: (954) 763-4700Facsimile: (954) 763-1866

P:\Cases\Katz , Marvin\motiontoapprovesettlement.wpd

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 5 of 32

STIPULATION FOR SETTLEMENTWITH MRT, LLC, MRT HOLDINGS, LLC, JAMES CLEMENTS AND ZEINA SMIDI

This Agreement is made and entered into as of this 8th day of July, 2009, by and betweenthe Plaintiffs, Marvin Katz, et al, on behalf of himself and all others similarly situated, by andthrough undersigned counsel (`Plaintiffs"), and Defendants, MRT LLC, a Florida Corporation,MRT Holdings LLC, a Delaware Corporation, James Clements and Zeina Smidi ("Defendants"),

RECITALS

WHEREAS, the Plaintiffs filed suit against the Defendants in that certain case styled,Marvin Katz, et at, on behalf of himself and all others similarly situated, vs. MRT LLC, a FloridaCorporation, MRT Holdings LLC, a Delaware Corporation, James Clements and Zeina Smidi(collectively, "Defendants"), United States District Court, Southern District of Florida, Case, 07-61438-CIV-CORN ("the pending action").

WHEREAS, there is a default against the Defendants, except MRT LLC, who wasdismissed from this pending action for lack of timely service; however, MRT LLC, has agreed toconsent to personal and subject matter jurisdiction as part of this settlement;

WHEREAS, the Court certified the pending action as a class action;

WHEREAS, Plaintiffs contend that the Defendants operated a Ponzi Scheme andotherwise sold unregistered securities, causing damages to the Plaintiffs;

WHEREAS, the Defendants have denied any liability for the claims set forth in thepending action, but agree to settle this case, with the understanding that this agreement does notconstitute an admission and may not be used for any other civil or criminal liability purposes;

WHEREAS, the parties desire to amicably resolve their disputes concerning the claimsset forth in the pending action and avoid the expense and uncertainty of litigation;

AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiencyof which is hereby acknowledged, the parties stipulate and agree as follows:

1. The foregoing recitals are true and correct.

2. Defendant, MRT LLC, a Florida Corporation, hereby agrees that the Court in thepending action has personal and subject matter jurisdiction over it in the pending action, CaseNo. 07-61438-CIV-COHN, and waive any service of process. Defendants MRT Holdings LLC, aDelaware Corporation, James Clements and Zeina Smidi likewise agree that Courtin the pendingaction has personal and subject matter jurisdiction over it in the pending action, Case No. 07-

1{PT53S888;2^

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 6 of 32

61438-CIV-COHN, and waive any service of process. The Defendants agree not to appeal thefinal judgment or entry of default against them in the pending action.

3. The Defendants, MRT LLC, a Florida Corporation, MRT Holdings LLC, aDelaware Corporation, James Clements and Zeina Smidi, hereby consent to the entry of a FinalJudgment in the pending action for $50,000,000.00, for which let execution issue.

4. Defendants stipulate that the Plaintiffs may institute supplementary proceedingsunder Florida law, in the pending action, to prosecute actions for fraudulent transfers and suchother actions as are allowed by law in furtherance of the collection of the judgment.

5. Defendants agree to turnover copies all business and accounting records of MRTLLC and MRT Holdings LLC to counsel for Plaintiffs forthwith, and allow inspection oforiginals. The documents will not be given to third parties except in the course of litigation or ifsubject to a subpoena or court order, or for experts, or as otherwise required by law.

6. Defendants agree to sign, under oath, a current financial affidavit, and to turnoverall banking records for the last four years to counsel for Plaintiffs. Plaintiffs are relying upon therepresentation of Defendants that they currently have no significant material assets derived fromthe operations of MRT LLC and MRT Holdings LLC, as a material inducement into making thisagreement.

7. Time shall be of the essence hereunder.

8. Except as set forth herein, each party agrees to bear the expense of its ownattorney's fees and costs. However, nothing contained herein shall preclude the Plaintiffs' counselfrom seeking payment of his attorney's fees and costs in the pending action, once there has beencollection on the judgment or through ancillary or other proceedings.

9. The Defendants shall provide cooperation to the Plaintiffs to assist the Plaintiffsin the collection of the judgment, including actions for fraudulent transfer.

10. The Defendants shall get a credit of $1.20 credit per $1 that they materially assistin collecting on the judgment.

11. Plaintiffs agree that the final judgment may be reduced to a number less than$50,000,000.00, once a full accounting as been performed, to determine the precise amount ofmonies that were raised by the Defendants, if the accounting shows that the judgment should beof a lesser sum. In furtherance thereof, Defendants must provide all banking and accountingrecords so that the full accounting may be performed.

12. The Defendants agrees to forfeit, waive, remise, release, acquit, satisfy andforever discharge (the "Release") the Plaintiffs their heirs, executors, successors, affiliates,predecessors, assigns and agents, of and from any action or actions, cause and causes of action orsuits which the Defendants have or had against the Plaintiffs or their counsel for any claimsrelating to the pending action, including claims, if any, filed in the pending action.

2;FT538888;21

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 7 of 32

13. Upon payment of the judgment, the Plaintiffs agrees to forfeit, waive, remise,release, acquit, satisfy and forever discharge (the "Release") the Defendants of and from anyaction or actions, cause and causes of action or suits which the Defendants have or had against thePlaintiffs or their counsel for any claims relating to the pending action, including claims, if any,filed in the pending action, except for any obligations due under this agreement and the judgment.

14. The negotiations leading to the terms of this Agreement shall be deemedconfidential. The parties agree not to disclose any statement made during negotiations leading tothe terms of this Agreement to any person except as may be necessary for the preparation offinancial statements or tax returns, or as may be required by law or by valid order of court or toeffectuate this Agreement, or in furtherance of collection on the judgment. Nothing in thisAgreement shall, however, be deemed to interfere with each party's obligation to reporttransactions with appropriate governmental, taxing and/or registering agencies, including thefederal courts. Nothing stated during negotiations shall be construed as an admission ofDefendants.

15. This Agreement may be executed by facsimile in any number of counterparts, andeach such counterpart shall for all purposes be deemed to be an original.

16. This Agreement shall be deemed the joint product of the parties and shall not beconstrued against any party as the drafter.

17. This Agreement constitutes the entire Agreement between the parties with respectto the subject matter hereof, and any prior oral or written statements concerning this subject aremerged herein.

18. This Agreement may be amended only by written agreement signed by theparties.

19. This Agreement is subject to Court approval. Upon the receipt of this Agreementsigned by the Defendants, the Plaintiffs will file a motion seeking approval of it by the Court inthe pending action, and for the court to retain jurisdiction to enforce the terms of it.

20. In the event the Court fails to approve this Agreement in its entirety, thisAgreement shall be deemed null and void and of no further force or effect, although theconfidentiality of the negotiations shall survive this agreement.

21. This Agreement shall be governed by the laws of the State of Florida.

22. This agreement cannot be used as an admission for any criminal or civil liabilityoutside of this pending action.

3{FT538888;2)

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 8 of 32

23. Notice shall be deemed provided to the Defendants herein by furnishing, byovernight delivery, email or fax to their counsel Inger Garcia, Esq., PO Box 11933, FortLauderdale, FL 33339, attorney,cringergarcia.com , fax 954-446-1635.

By:

Marvin Katz, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Eloise Dabney, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Eloise Dabney, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.,

Notary Public

By:

Ricky Tate, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Rickey Tate, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

4{FT538888:2

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f

Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 9 of 32

MRT LLC, a Florida CorporationMRT .-10 ldings, LL a Delaware C i r i orationBv: ^_ t

J: m, s Clements, f anaging Member andAu orized agent

By:

James Clements

State of Florida

County of Broward

Before me, the undersigned authority, personally appeared James Clements, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedthr, - =nd w.. identified by his Florida Drivers License No. t(^ 5- 7 i L

Ld N o t a 11,iii I /Ir

1 ' AYR. GalsMY OOMiAWIi #WTOM

(00 EXPIRES: x1139, 1

s'' g Ihwph 1^ tOgleBy:

Zeina Smidi

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Zeina Smidi, who after beingduly sworn, stated that he executed the above agreement for the purposes intended

therein, and was identified by her Florida Drivers License No. i

Notary Public

Inger Garcia, Esq., attorney for DefendantsAs to form only

Jeffs: ,:,n , , q., attorney for Plaintiff'sAs

1 'o m 1 4 ly

5

{ FTi38888;2 }

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 10 of 32

By:

Patricia A. Jackson, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Patricia A. Jackson, who afterbeing: duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Nyra Horowitz, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Nyra Horowitz, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

BYamela Brown, for Plaintiffs

State of FloridaC , unty of Broward

-fore me, th j der a d authority, personally appeared Pamela Brown, who afterbeing i ly s ern, st- that he executed the above agreement for the purp ses intendedtherei as id- e by; is Florida Drivers License No, ///J^

Not. ublr ..., 4iG

^r ,.LUdG ^0 _,

By., Richard Brown, for Plaintiffs

. to of Floridaounty of Broward

Befo a rn: the `ersig uthority, personally appeared Richard Brown, who afterbei dul state • he executed the above agreement .r the purposes intended

the -in, • Ontif y his Florida Drivers License No .A - –

No+• P'+lic '—

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 11 of 32

23. Notice shall be deemed provided to the Defendants herein by furnishing, byovernight delivery, email or fax to their counsel Inger Garcia, Esq., PO Box 11933, FortLauderdale, FL 33339, attorneyna,ingergarcia.com , fax 954-446-1635.

By:

Marvin Katz, for Plaintiffs

State of Florida

County of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public .t^

Eloi 1 abney, f i r Min ' s

State of FloridaCounty of Broward -

Before me, the undersigned authority, personally appeared Eloise Dadney, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intended

c _ ther^ejn' and^ ed by his Florida Dri-Vers1License No.a-^^'7^I -star P

GINA CATAPANOY "^s W COMMISSION #DD721423

^.,

Gn

EKPIRES: OCT 02, 2011 B Bonded through t st state Insurance Y=

I Ricky Tate, for PlaintiffsState of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Ricky Tate, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

4{FT538888;2)

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 12 of 32

23. Notice shall be deemed provided to the Defendants herein by furnishing, byovernight delivery, email or fax to their counsel Inger Garcia, Esq., PO Box 11933, FortLauderdale, FL 33339, attorney,(ddngergarcia.com, fax 954-446-1635.

By:

Marvin Katz, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Eloise Dabney, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Eloise Dadney, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

Bv:

Ricky Tate, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Ricky Tate, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and ' q entif ed .by his. Florida Drivers License No. lv '75'L ,N(Aary., Sc

GINA CATAPANO

F F`Y °ry ^ MY CO4JIM15510N #DD721423EXPIRES: OCT 02, 2011

Bonded through 1st state Insurance

4(FT538888;2}

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 13 of 32

By: Harriet Geyer, for Plaintiffs

State of FloridaCount- of lfe^?e-Awl-

Before me, the undersigned authority, personally appeared Marvin Katz. who after beingduly sworn, stated that he executed the above agreement for the purposes intendedthere," nd was id ^^^ ^ his Florida Drivers License No. [s'^ i ^^ iA - ;;"4

,,¢ ^` Y , ofC,1p ^^h`i

Notary Ptalic ^^ ; •oissipN ^^'!' ''may$ ,G gmber2B Ff^

!^ ; ^8D f37G63 _ By: t^a ^^Cri.. Annette Shirley Mair, for Plaintiffs

State of Florida ,f^r^^i iii ̂ i^► ^s^`^` `Counw of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Lewis Sinn Seiden, for PlaintiffsState of FloridaCounty- of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingdulyT sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary, Public

By: Phyllis Seiden, for Plaintiffs

State of FloridaCounty of Broward

Before me. the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein., and was identified by his Florida Drivers License No.

Notary Public

6FT5388W2} ^^

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 14 of 32

23. Notice shall be deemed provided to the Defendants herein by furnishing, byovernight delivery, email or. fax to their counsel finger Garcia, Esq., PO Box 11933, FortLauderd -F., 3,313 ,, a ^t%neyniVeraarcja.com. fax 954-446-1635.

''"F _ 4y CHRISTINE KUSTEWANN MNobry Pubis- $we of Florida i , 441k^

•I Ay Commis" Expins W 3, 2011

ic

By:Cam"" oa *OD ns"O atz, fo tiffs

It-alc7ofFlUnRia— —County of+rcl tlrn beac'h

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intended

e and : s id- 'f ed by his • 'da Drivers License No. _̀s2 0-531- 7- a i I- U

i .1NW.

.Notary Public

By:

Eloise Dabney, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Ricky Tate, for Plaintiffs

State of Florida

County of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

4

{FT538888;Z} ^ f

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V f! 19'ZIJUd 1 f -43 f AA 4t4 (,318bb [E ("(I111001

Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 15 of 32

By:Harriet Greyer, for Plaintiffs

Mate of FloridaCounty of Browatd

Before ine, the undersigned authority, personally appeared Harriet Cieyer, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Annette Shirley Mair, for Plaintiffs

State of FloridaCounty of

Before me, the undersigned authority, personally appeared Annette Shirley Ma.ir, whoafter being duly swona. stated that be executed the above agreement for the purposesintended therein, and was identified by his Florida Dri vers License

Notary PublicNQ TA `PUBLIC29TATE ®^ R3 BR^^r``

Marlena J. Sullo^Commission # DD729196ExpLes; Oi'T. 25.2011

MIMED THR'IATi.AN'['ICBOND ^ Lewis Jim

.

for PlaintiffsState of 1~ ioridaCounty of ^d (h

Before me, the undersigned authority, personally appeared Jim Seiden, who after being .duly sworn, stated that he executed the above agreement for the purposes intendedt^re^ign, and pas identified by Florida Drivers License ,-_ e

;votary PublicN. OTARy Pf LBLIC-STATE OF FLOEDA

Marlena J. Sullo'4 _; -^ Commission # DD729196hits Expires: OCT. 25, 2011 BY: ^^ ^f ^-.^'

BONDED THRU ATLAN-n -, SC^ir411rG CO., QIC. Y hvW Seiden, for'PlaintlffsState of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Phyliis Seiden, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Dri vers License No.

6(FTS3^388;2^

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 16 of 32

By:j-^? Patricia A. Jackson, f Plaintiffs

State of FloridaCounty of Broward

o e cxae, t= geed authority, personally appeared Patricia A. Jackson, who afterb; in.-, •uly s • Jed that he executed the above agreement for the purposes intendedt + as ^ ^ r ified by his Florida Drivers License

o Pubic...n

rt

By:

Nyra Horowitz, for Plaintiffs

State of Florida

County of Broward

Before me, the undersigned authority, personally appeared Nyra Horowitz, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Pamela Brown, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Pamela Brown, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Richard Brown, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Richard Brown, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

5(PT538888;2}

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 17 of 32

Bv:

Harriet Geyer, fo lain ffs

State of FloridaCounty of Broward PA,(,,,' &

Before me, the undersigned authority personall y appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intended• -r- o, and Nva 'dentifies /' his Florida Drivers License No. 6Go,Z)- 5 5(-- 3C^ -Cr a - ^=

l!►;,. ^^",.. r-fAQZte+ Gr-- Z_R_ A=SS ^RODNEY BEZERR • `( 0 t^ -S

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my commission Expires Sep 25, 2010Commission # DD 598709

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Bonded By National Notary Assn. Annette Shirley- fair, for PlaintiffsState of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein; and was identified by his Florida Drivers License No.

Notary Public

By:

Lewis Jim Seiden, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz. who after beingduly sworn. stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By•

Phyllis Seiden, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

b(FT538888,2

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 18 of 32

By:

Patricia A. Jackson, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

r

By:/ AO',AVi.1Nyra t : rowitz, for Plaintiffs

State of FloridaCounty of 4FO*

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement fort e p oses intendedtherein, and was 'denti d by his Florida Drivers License No

Notary Public ^^ ")'t qSANDRA L. SAENZ^*NlY,rrr: Comm# DD0661035

Expires 418/2011Florida Notary Assn., ins Pamela Brown, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

By:

Richard Brown, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

5(FT538888;2 }

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 19 of 32Ju .28. 2008 10:41PM LAWOFFICE INGER GARCIA ESQ No•3575 PP

STIPULATION FOR SETTLEMENTWITH MRT, LLC. MRT HOLDINGS, LLC. FAMES CLEMENTS AND ZEINA SMIIDI

This Agreement is made and entered into as of this 8th day of July, 2009, by and betweenthe Plaintiffs, Marvin Katz, et al, on behalf of himself and all others sirztilarly situated, by andthrough undersigned counsel ("Plaintiffs"), and Defendants, MRT LLC, a Florida Corporation,MRT Holdings LLC, a Delaware Corporations, James Clements Azad .Zeina Smidi ("Defendants").

RECITALS

WHEREAS, the Plaintiffs filed suit against the Def'endmits in that certain case styled,Marvin Katz, et al, on behalf of himself and all others similarly situated, vs. MRT LLC, a FloridaCorporation, MRT Holdings LLC, a Delaware Corporation, James Clements and Zeina Smidi(collectively, "Defendants"), United States District Court, Southern District of Florida, Case, 07-6143$-CIV-CDHN ("the pending action").

WHEREAS, there is a default against the Defendants, except MRT LLC, who wasdismissed from this pending action for lack of timely service; however, MRT LLC, has agreed toconsent to personal and subject matter jurisdiction as part of this settlement;

WHEREAS, the Court certified the pending action as a class action;

WHEREAS, Plaintiffs contend that the Defendants operated a Ponzi Scheme andotherwise sold unregistered securities, causing damages to the Plaintiffs;

WHEREAS, the Defendants have denied any liability for the claims set forth in thepending action, but agree to settle this case, with the understanding that this agreement does notconstitute an admission and may not be used for any other civil or criminal liability purposes;

WHEREAS, the parties desire to amicably resolve their disputes concerning the claimsset forth in the pending action and avoid the expense and uncertainty of litigation;

AGREEMENT

NOW, THEREFORE, for goad and valuable consideration, the receipt and sufficiencyof which is hereby acknowledged, the parties stipulate and agree as follows:

1, The foregoing recitals are true and correct.

2. Defendant, MILT LLC, a Florida Corporation, hereby agrees that the Court in thepending action has personal and subject matter jurisdiction over it in the pending action, CaseNo. 07.614^S.CIV-CDHN, and waive any service of process. Defendants MILT Moldings LLC, aDelaware Corporation, James Clements and Zeina Smidi likewise agree that Court in the pendingaction has personal and subject matter jurisdiction over it in the pending action, Case No, 07-

1[F7338888;2}

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 20 of 32Ju1.28. 2009 10:41PM LAWOFFICE 1NGER GARCIA ESQ No-3575 P- 2

61438-CIV-COON, and waive any service of process. The Defendants agree not to appeal thefinal judgment or entry of default against them in the pending action.

3. The Defendants, MRT LLC, a Florida Corporation, MRT Holdings LLC, aDelaware Corporation., James Clements and Una Smidi, hereby consent to the entry of a FinalJudgment in the pending action for $50,000,000.00, for which let execution issue.

4. Defendants stipulate that the Plaintiffs may institute supplementary proceedingsunder Florida law, in the pending action, to prosecute actions for fraudulent transfers and suchother actions as are allowed by law in furtherance of the collection of the judgment.

5. Defendants agree to turnover copies all business and accounting records of MRTLLC and MRT Moldings LLC to counsel for Plaintiffs forthwith, and allow inspection oforiginals. The documents will not be given to third panties except in the course of litigation or ifsubject to a subpoena or court order, or for experts, or as otherwise required by law.

6. Defendants agree to sign, under oath, a current financial affidavit, and to turnoverall banking records for the last four years to counsel for Plaintiffs. Plaintiffs are relying upon therepresentation of Defendants that they currently have no significant material assets derived frontthe operations of MRT LLC and MRT Holdings LLC, as a material inducement into making thisagreement.

7. Time shall be of the essence hereunder.

8. Except as set forth herein, each party agrees to bear the expense of its ownattorney's fees and costs. However, nothing contained herein shall preclude the Plaintiffs' counselfrom seeking payment of his attorney's fees and costs in the pending action, once there has beencollection on the judgment or through ancillary or other proceedings.

9. The Defendants shall provide cooperation to the Plaintiffs to assist the plaintiffsin the collection of the judgment, including actions for fraudulent transfer.

10. The Defendants shall get a credit of $1.20 credit per $1 that they materially assistin collecting on the judgment.

11. Plaintiffs agree that the final judgment may be reduced to a number less than$50,000,000.00, once a full accounting as been performed, to determine the precise amount ofmonies that were raised by the Defendants, if the accounting shows that the judgment should beof a lesser sum. In furtherance thereof, Defendants must provide all banking and accountingrecords so that the full accounting may be performed.

12. The Defendants agrees to forfeit, waive, remise, release, acquit, satisfy andforever discharge (tile "Release") the Plaintiff's their heirs, executors, successors, affiliates,predecessors, assigns and agents, of and from any action or actions, cause and causes of action orsuits which the Defendants have or had against the Plaintiffs or their counsel for any claimsrelating to the pending action, including claims, if any, filed in the pending action.

2s^rs^seas;^}

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 21 of 32A k H . 2009 10:42PM LAWOFFICE [LAGER GARCIA ESO U-3575 P. 3

W 13. Upon payment of the judgment, the Plaintiffs agrees to f'orf'eit, waive, remise,release, acquit, satisfy and forever discharge (the "Release") the Defendants of and from anyaction or actions, cause and causes of action or suits which the Defendants have or had against thePlaintiffs or their counsel for any claims relating to the pending action, including claims, if any,filed in the pending action, except for any obligations due under this agreement and the judgment.

14. The negotiations leading to the terms of this Agreement shall be deemedconfidential, The parties agree not to disclose any statement made during negotiations leading tothe terms of this Agreement to any person except as may be necessary for the preparation offinancial statements or tax returns, or as may be required by law or by valid order of court or toeffectuate this Agreement, or in furtherance of collection on the judgment. Nothing in - thisAgreement shall, however, be deemed to interfere with each party's obligation to reporttransactions with appropriate governmental, taxing and/or registering agencies, including thefederal courts, Nothing stated during negotiations shall be construed as an admission ofDefendants,

15. This Agreement may be executed by facsimile in any number of counterparts, andeach such counterpart shall for all purposes be deemed to be an original.

16. This Agreement shall be deemed the joint product of the parties and shall not beconstrued against any party as the drafter.

17. This Agreement constitutes the entire Agreement between the parties with respectto the subject matter hereof and any prior oral or written statements concerning this subject aremerged herein.

1$. This Agreement may be amended only by written agreement signed by theparties.

19. This Agreement is subject to Court approval. Upon the receipt of this Agreementsigned by the Defendants, the Plaintiffs will file a motion seeking approval of it by the Court inthe pending action, and for the court to retain jurisdiction to enforce the terms of it.

20. In the event the Court fails to approve this Agreement in its entirety, thisAgreement shall be deemed null and void and of no further force or effect, although theconfidentiality of the negotiations shall survive this agreement,

21, This Agreement shall be governed by the laws of the Mate of Florida.

22, This agreement cannot be used as an admission for any criminal or civil liabilityoutside of this pending action.

3

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 22 of 321uk 28. 2009 10:42PIA LAWOFFICE INGER GARCIA ESO No-3575 P. 4

23. Notice shall be deemed provided m the Defendants herein by furnishing, byOvernight delivery, email or fax to their counsel Inger Garcia, Esq., PO Box 11933, FortLauderdale, FL 33339, attornev c@r jng4.ygarcia.com , fax 954-445-1635.

By;

Marvin Katz, for plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Marvin Katz, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

Eloise Dabney, for Plaintiffs

State of FloridaCounty of Broward

Before nee, the undersigned authority, personally appeared Eloise Dabney, who afterbeing duly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No. — -

Notary Public

By

Ricky Tate, for Plaintiffs

State of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Rickey Tate, who after beingduly sworn, stated that he executed the above agreement for the purposes intendedtherein, and was identified by his Florida Drivers License No.

Notary Public

4{FT538S88;2}

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 23 of 32Jul-2$• 2009 10:43PM LAWOFFICE INGER GARCIA ESQ Ho-3575 P. 5

MRT LLC, a Florida CorporationMRT ldzngs, LL ,a eiaware C r oration

"3 n s Clements, anaging Member andAu prized agent

7

James ClementsState of FloridaCounty of Broward

Before me, the undersigned authority, personally appeared Fames Clements, who afterbeint duly sworn, stated that he executed the above agreement for the purposes intendedth- eid w-.er3tifled by his Florida, Drivers License No. tf 4'S" k s'"

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Ze'A SmidiState of Florida —County of Broward

Before me, the undersigned authority, personally appeared Zeina Smidi, who after beingduly sworn, stated that he executed the above agreement for tine purposes intendedthere' : d was identified by her rivers License No Sa l r W ^? '

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Case 0:07-cv-61438-JIC Document 63 Entered on FLSD Docket 08/10/2009 Page 24 of 32

CLASS ACTIONNOTICE OF PROPOSED SETTLEMENT OF CLASS ACTION

If you purchased or otherwise invested in MRT Holdings LLC or MRT LLC, ( “MRT”)securities during the period from March 1, 2006 through October 5, 2007 (the “Class Period”)and are not otherwise excluded from the Class, there is a proposed settlement that provides fora Final Judgment against MRT and other Defendants.A federal court authorized this Notice. This is not a solicitation from a lawyer.

Security and Time Period: All purchasers of investment Contracts with MRT LLC or MRTHoldings LLC purchased or otherwise acquired between March 1, 2006 to October 5, 2007(“MRT Securities”).

Settlement Fund: There is no settlement fund at this time. The settlement provides for a FinalJudgment of $50 million dollars against the Defendants. The Final Judgment may be used tolocate and seize assets to pay all or part of the Final Judgment. There is no money to distribute atthis time. The Final Judgment provides the class the right to seek and seize assets of theDefendants to pay all or part of the Judgment, and to institute actions to set aside fraudulentconveyances, if located.

Reasons for Settlement: Avoids the costs and risks associated with continued litigation,including danger of no recovery at trial.

If the Case Had Not Settled: Continuing with the case could have resulted in dismissal or lossat trial or on appeal. The two sides vigorously disagree on both liability and the amount ofmoney that could have been won if Lead Plaintiffs prevailed at trial. The parties disagree about:(1)whether any of the Defendants committed any wrongdoing (2) the amount of damages and (3)whether the business of the Defendants constituted a ponzi scheme; and (4) whether thedefendants intended to defraud the Plaintiffs in violation of the federal securities laws, and iftheir actions caused damages; and (5) whether the facts alleged were material, false, misleadingor otherwise actionable under the federal securities laws.

Attorney Fees and Expenses: Court-appointed Plaintiffs' Lead Counsel will ask the Court forattorney fees of 25% of any amounts collected under the Final Judgment, and expenses to datenot to exceed $2,000 to be paid from any collection on the Final Judgment. Plaintiffs' LeadCounsel have not received any payment for their work investigating the facts, conducting thisAction and negotiating this settlement on behalf of the Lead Plaintiffs and the Settlement Class.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT:

OBJECTYou may write to the Court if you don't like this settlement.

GO TO A HEARINGYou may ask to speak in Court about the fairness of the settlement.

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DO NOTHINGThe court will accept your silence as your agreement to the settlement.

• These rights and options- and the deadlines to exercise them-are explained in this Notice.

• The Court in charge of this case must decide whether to approve the settlement. Payments willbe made only if there is collection of monies or assets, utilizing the Final Judgment, if the Courtapproves the settlement and, if there are any appeals, after appeals are resolved. Please be patient.

BASIC INFORMATION1. Why did I get this notice package?You or someone in your family may have purchased or otherwise acquired MRT investmentsbetween March 1, 2006 and October 5, 2007, inclusive.The Court directed that you be sent this Notice because you have a right to know about aproposed settlement of a class action lawsuit, and about all of your options, before the Courtdecides whether to approve the settlement. If the Court approves the proposed settlement andafter any objections or appeals (if there are any) are resolved, and if there is any collection ofmonies on the judgment, then there will be a an opportunity for the processing of claims, andonce complete, a Claims Administrator will then be appointed by the Court to make thepayments that the Court allows.This package explains the lawsuit, the settlement, your legal rights, what benefits are available,who is eligible for them, and how to get them.The Court in charge of the case is the United States District Court for the Southern District ofFlorida, and the case is known as Katz, et al. vs. MRT, et al, Case No. No. 07-61438-CV-COHN.The individuals that were appointed by the Court to direct this case are called the Lead Plaintiffsand the company and the individuals that were sued are called Defendants.

2. What is this lawsuit about?This Action alleges that MRT and certain individual defendants violated the federal securitieslaws by making false and misleading statements regarding MRT’s investments, that MRT andcertain defendants omitted material facts, and that MRT, in essence was a Ponzi Scheme, inviolation of the federal securities laws during the Settlement Class Period.Defendants deny all of Lead Plaintiffs' allegations and that they did anything wrong. Defendantsalso deny that Lead Plaintiffs or the Settlement Class suffered damages by reasons of any allegedmisrepresentations, non disclosures or otherwise.

3. Why is this a Class Action?In a class action, one or more people called class representatives (in this case, the Court-appointed Lead Plaintiffs, Marvin Katz and others) sue on behalf of people and/or entities whohave similar claims. All of these people and/or entities are called a class or class members. Onecourt resolves the issues for all class members, except for those who exclude themselves fromthe class. United States District Court Judge James L. Cohn is in charge of this case.

4. Why is there a settlement?

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The Court did not decide in favor of Lead Plaintiffs or Defendants. Instead, the lawyers for bothsides of the lawsuit have negotiated a settlement, that they believe is in the best interests of theirrespective clients. The settlement allows both sides to avoid the risks and cost of lengthy anduncertain litigation and the uncertainty of a trial and appeals, and permits Class Members toobtain a Final Judgment without further delay. A Final Judgment is a legal document thatdeclares that the Defendants owe money to the Plaintiffs. A Final Judgment allows the Plaintiffsto attempt to collect the assets of the Defendants, and allows the Plaintiffs to file, if they sochoose, actions to set aside the fraudulent conveyances of assets from the Defendants to thirdparties, which if successful, allows the Class Members to recover money. The Lead Plaintiffsand their attorneys think the settlement is best for all Settlement Class Members.

WHO IS IN THE SETTLEMENTTo see if you will get money from this settlement, you first have to determine if you are a ClassMember.

5. How do I know if I am part of the settlement?The Settlement Class includes all persons who purchased or otherwise invested in MRT duringthe period from March 1, 2006 to October 5, 2007, inclusive, and were damaged thereby. TheCourt has already certified this as the Class Members, except for those who have opted out priorto the deadline, which passed long ago.

6. Are there exceptions to being included in the Settlement Class?Yes. Plaintiffs will request that the Court excluded from the Class Defendants; any entity inwhich the Defendants have a controlling interest or that is a parent or subsidiary of or iscontrolled by the Defendants, Defendants' officers and directors, including any person who wasan officer or director during the Class Period, Defendants' affiliates, legal representatives, heirs,predecessors, successors and/or assigns and immediate family. Also excluded from the Class arethose Persons who timely and validly request exclusion from the Class.

7. I'm still not sure if I am included.If you still are not sure whether you are included, you can ask for free help. You can call JeffSonn, Esq., attorney for Plaintiffs at 1-866-372-8311 or visit www.sonnerez.com for moreinformation. Do not call the Court.

THE SETTLEMENT BENEFITS-WHAT YOU GET8. What does the settlement provide?Defendants have agreed to:

a. the entry of a Final Judgment for $50 million dollars.b. the cooperation of the Defendants to help locate the missing investor money;c. the turnover of business records critical to finding the missing investor money;d. the possible opening of supplemental proceedings, to allow for the suit against

parties who received monies from the MRT fraud, believed to be fraudulentlytransferred.

This settlement is reasonable and in the best interests of the parties. It provides for a monetaryjudgment. The best that any investor could hope for in this case was to prevail at trial, and obtaina judgment for the amounts owed, in any event. The second step is to try to collect on thatjudgment. This settlement accomplishes the goal of obtaining the judgment, and the cooperationof the Defendants to locate the missing investor money. In exchange, the Defendants, if the

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Defendants provide material cooperation to locate the missing money, the cooperating party willobtain a credit of 20 cents of every dollar collected against the Final Judgment obtained in thisaction. Moreover, if the ultimate accounting shows less than $50 million invested in the scheme,then the Plaintiffs will ask this court to reduce the Judgment to such lesser amount that theaccounting reveals. Of course, if the Defendants do not cooperate, they get no credit against theJudgment, and no reduction of the Judgment amount a Final Judgment of $50 million dollarsagainst them.9. How much will my payment be?There is no payment at this time. The Final Judgment is the first step towards trying to find andseize assets necessary to pay the Final Judgment. There is no guarantee of payment; assets may,or may not be ever located. If this case were to go to trial as expected, a Final Judgment for $50million dollars was the best that any class member could expect from a trial. This agreement alsosaves the class from any appeals of the Final Judgment.10. THE HEARING ON THE SETTLEMENT.The Court will hold a hearing on , 2009, at __ __ m., at Room 203E, 299 East BrowardBlvd., Fort Lauderdale, Florida, before the Honorable James L. Cohn to decide whether toapprove the settlement. If Judge Cohn approves the settlement, there may be appeals. It is alwaysuncertain whether these appeals can be resolved favorably, and resolving them can take time,perhaps more than a year. If there are no appeals, then Plaintiffs can proceed with trying tocollect on the Final Judgment.

THE LAWYERS REPRESENTING YOU11. Do I have a lawyer in this case?The Court appointed the law firm of Sonn & Erez PLC to represent you and other ClassMembers. These lawyers are called Plaintiffs' Lead Counsel. You will not be personally chargedfor these lawyers' work. If you want to be represented by your own lawyer, you may hire one atyour own expense. The lawyers are paid a fee, on a contingency fee basis.

12. How will the lawyers be paid?At the settlement hearing, Plaintiffs' Lead Counsel will request the Court to award attorney feesof 25% of any monies collected from the Final Judgment and for expenses of up to $2,000.00which were advanced in connection with the Action, plus interest earned on such amounts at thesame rate as earned on the Final Judgment. These monies will be paid from the collection on theFinal Judgment, if monies are located that are subject to the Judgment. Class Members are notpersonally liable for any such fees or expenses. To date, no assets subject to the proposed FinalJudgment have been located. Plaintiffs’ Counsel has not received any payment for their servicesin conducting this Action on behalf of the Lead Plaintiffs and the Class, nor have Plaintiffs' LeadCounsel or the Lead Plaintiffs been reimbursed for their expenses. The fee requested willcompensate Plaintiffs' Lead Counsel for their work in achieving the final Judgment and is wellwithin the range of fees awarded to class counsel under similar circumstances in other cases ofthis type. The Court may award less than this amount.

OBJECTING TO THE SETTLEMENTYou can tell the Court that you don't agree with the settlement or some part of it.

13. How do I tell the Court that I don't like the settlement?If you are a Class Member, (and you have not excluded yourself), you can object to the

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settlement if you do not like any part of it. You can give reasons why you think the Court shouldnot approve the settlement. The Court will consider your views. To object, you must send asigned letter saying that you object to the proposed settlement in Katz vs. MRT, Case No. 07-61438-civ-Cohn, to the Clerk of Court, 299 East Broward Blvd., Fort Lauderdale, Florida 33394.Be sure to include your name, address, telephone number, your signature, the name of the case,the case number, and the amount of MRT investment you purchased or otherwise acquired andsold between March 1, 2006 to October 5, 2007, inclusive, and the reasons you object to thesettlement. Any objection to the settlement must be mailed or delivered such that it is receivedby each of the following no later than , 2009:

CLERK OF THE COURT

UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA299 East Broward Blvd.Fort Lauderdale, Florida 33394.

and a copy to:

Jeffrey R. Sonn, [email protected] & EREZ, PLCBroward Financial Centre500 E. Broward Blvd., Suite 1500Fort Lauderdale, FL 33394Telephone: (954) 763-4700Facsimile: (954) 763-1866

Inger M. Garcia, Esq. counsel to Zeina Smidi, James Clements, MRT LLC; MRT Holdings LLCP.O. Box 11933Ft. Lauderdale, Florida 33339Telephone: (954) 894-9962Facsimile: (954) 446-1635Email: [email protected] [email protected]

THE COURT'S SETTLEMENT HEARINGThe Court will hold a hearing to decide whether to approve the proposed settlement. You mayattend, but you don't have to.

14. When and where will the Court decide whether to approve the settlement?The Court will hold a hearing on , 2009, at __ __ m., at Room 203E, 299 East BrowardBlvd., Fort Lauderdale, Florida, before the Honorable James L. Cohn. At this hearing, the Courtwill consider whether the settlement is fair, reasonable and adequate. If there are objections, theCourt will consider them. The Court will listen to people who have asked to speak at the hearing.The Court will also decide whether to approve the payment of fees, costs and expenses to

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Plaintiffs' Lead Counsel, including the award to one of the Lead Plaintiffs to compensate him forhis time and effort in this case. We do not know how long the hearing will take or whether theJudge will make his decision about the settlement on the day of the hearing or sometime later.

15. Do I have to come to the hearing?No. Plaintiffs' Lead Counsel will answer questions Judge Cohn may have. But, you are welcometo come at your own expense. If you send an objection, you don't have to come to Court to talkabout it. As long as you mailed your written objection on time, the Court will consider it. Youmay also pay your own lawyer to attend, but it is not necessary.16. May I speak at the hearing?You may ask the Court for permission to speak at the settlement hearing. To do so, you mustsend a letter saying that it is your intention to appear at the settlement hearing in Katz vs. MRT,Case No. 07-61438-civ-Cohn, to the Clerk of Court, 299 East Broward Blvd., Fort Lauderdale,Florida 33394. Be sure to include your name, address, telephone number, your signature, andthe number and amount of investment in MRT purchased and/or otherwise acquired betweenMarch 1, 2006 and October 5, 2007. Your notice of intention to appear must be received no laterthan , 2009, by the Clerk of the Court, Plaintiffs' Lead Counsel, andDefendants' Counsel, at the addresses listed in Question 13. You cannot speak at the hearing ifyou do not send in the letter of your intention to speak at the hearing.

IF YOU DO NOTHING17. What happens if I do nothing at all?If you do nothing, then the Court will accept your silence that you agree to the settlement.

GETTING MORE INFORMATION18. Are there more details about the settlement?This Notice summarizes the proposed settlement. More details are in the Stipulation ofSettlement which has also been filed with the Court. You can get a copy of the Stipulation ofSettlement from the Clerk's office at the 299 East Broward Blvd., Fort Lauderdale, Florida 33394during normal business hours.

19. How do I get more information?You can call 1-866-372-8311 or write to representatives of Plaintiffs' Lead Counsel. Please donot call the Court or the Clerk of the Court for additional information about the settlement.

20. Special notice to nomineesIf you hold any investments in MRT purchased during March 1, 2006 to October 5, 2007,inclusive, as a nominee for a beneficial owner, then, within ten (10) days after you receive thisNotice, you must either: (1) send a copy of this Notice to all such beneficial owners; or (2)provide a list of the names and addresses of such beneficial owners to the Plaintiffs LeadCounsel.

DATED: , 2009

BY ORDER OF THE COURT

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

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CLASS ACTION SUMMARY NOTICE(TO BE PUBLISHED IN A PUBLIC RELATIONS RELEASE)TO: ALL PERSONS WHO PURCHASED OR OTHERWISE ACQUIRED INVESTMENTS INMRT LLC OR MRT HOLDINGS LLC (“MRT”) SECURITIES DURING THE PERIOD FROMMARCH 1, 2005 TO AND INCLUDING OCTOBER 5, 2007, INCLUSIVE (THE “CLASS”).

YOU ARE HEREBY NOTIFIED that pursuant to an Order of the United States District Courtfor the Southern District of Florida, a hearing will be held on , at ___:

.m., before the Honorable James L. Cohn, at the United States District Court for theSouthern District of Florida, Room 203E, 299 East Broward Blvd., Fort Lauderdale, Florida, forthe purpose of determining: (1) whether the proposed settlement of the Action for a FinalJudgment of $50 million dollars should be approved by the Court as fair, reasonable andadequate; (2) whether, thereafter, Lead Plaintiffs may begin supplementary proceedings to try tolocate assets subject to the Final Judgment; (3) whether to approve Plaintiffs' Lead Counsel'sapplication for an award of attorney fees and expenses incurred in connection with this Action,together with interest earned thereon.

If you purchased or otherwise acquired MRT investments between March 1, 2006 and October 5,2007, inclusive, your rights may be affected by this Action and the settlement thereof. As amember of the Class, already certified by this Court, you will be bound by any judgmentrendered in the Action. You have the right to object to the Settlement and Final Judgment.Any objection to the settlement must be filed with the Clerk of the Court no later than ,2009, and received by the following no later than ___, 2009:

Jeffrey R. Sonn, [email protected] & EREZ, PLCBroward Financial Centre500 E. Broward Blvd., Suite 1500Fort Lauderdale, FL 33394Telephone: (954) 763-4700Facsimile: (954) 763-1866Plaintiffs' Lead Counsel

Inger M. Garcia, Esq. counsel to Zeina Smidi, James Clements, MRT LLC; MRT Holdings LLCP.O. Box 11933Ft. Lauderdale, Florida 33339Telephone: (954) 894-9962Facsimile: (954) 446-1635Email: [email protected] [email protected]' Counsel

PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING

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THIS NOTICE.

DATED: , 2009

BY ORDER OF THE COURTUNITED STATES DISTRICT COURT,SOUTHERN DISTRICT OF FLORIDA