Common use of Funding the Settlement Clause in Contracts

Funding the Settlement. Within thirty (30) days of the Preliminary Approval Order, Xxxxxxxx-Xxxxx shall deposit a minimum of two million dollars ($2,000,000.00) into a Fund that will be used to pay the Minimum Settlement Amount and Notice and Administration Expenses (“Settlement Fund”). Preliminarily, this initial deposit in the fund will be used to pay Notice and Administration Expenses, and may be applied toward the Minimum Settlement Amount only as described below. No later than thirty (30) days from the date of the Final Approval Order and Judgment, Xxxxxxxx-Xxxxx shall ensure that all Notice and Administration Expenses (unless otherwise agreed by Xxxxxxxx-Xxxxx and the Settlement Administrator), Service Awards, and Fee Award and Costs approved by the Court are paid. As soon as reasonably practicable after all validly submitted Claims have been reviewed and approved or rejected, the Settlement Administrator shall notify the Parties of the total Amount Payable for Approved Claims. No later than thirty (30) days from the date that the Settlement Administrator provides such notice, Xxxxxxxx-Xxxxx shall deposit, at a minimum, funds into the Settlement Fund sufficient to satisfy its obligation to pay the Minimum Settlement Amount for Approved Claims, and if the Amount Payable for Approved Claims exceeds the Minimum Settlement Amount, Xxxxxxxx-Xxxxx shall deposit funds in the Settlement Fund to satisfy any additional Approved Claims in an amount not to exceed the Maximum Settlement Amount, notwithstanding that there may be a minority of Claims subject to appeal or further determination. If the Amount Payable for Approved Claims is less than the Minimum Settlement Amount, Xxxxxxxx-Xxxxx shall receive a credit towards its other obligations: first to Notice and Administration Expenses, and second to the Fee Award and Costs, in which case Xxxxxxxx-Xxxxx must fund the Settlement sufficient to satisfy the Amount Payable for Approved Claims and the Minimum Settlement Amount less the applicable credits described herein. If the sum of the Amount Payable for Approved Claims exceeds $13.5 million, then payments to Participating Settlement Class Members shall be reduced pro rata so that the total of all payments for valid Claims under the Settlement Agreement does not exceed the Maximum Settlement Amount. If the Amount Payable for Approved Claims and the cost of Notice and Administration Expenses and the Fee Award and Costs together amount to less than the Minimum Settlement Amount, the Parties will confer and jointly submit a proposal to the Court regarding the proposed distribution of the remaining Settlement Funds.

Funding the Settlement. Within thirty (30) days of A. American shall have no obligation to make any payments whatsoever under this Settlement Agreement until after the Court enters a Preliminary Approval Order. Once the Court enters a Preliminary Approval Order, Xxxxxxxx-Xxxxx American shall deposit a minimum of two million dollars ($2,000,000.00) into a Fund that will be used to pay the Minimum Settlement Amount and reasonable Notice and Administration Expenses Costs arising under this Settlement Agreement by making such payments directly to the Settlement Administrator (“or to such other party incurring such costs) as those costs are incurred and payment becomes due. B. Within twenty-one (21) Days of the Effective Date, American will cause an amount sufficient to cover the Total Claim Amount (but in no event less than $7,500,000.00) to be transferred to the Settlement Fund”)Account as designated by the Settlement Administrator. Preliminarily, this initial deposit Any interest that accrues on the Total Claim Amount (or $7,500,000.00) in the fund Settlement Account will be used the property of the Settlement Classes and added to the Refunds distributed to Settlement Class Members. C. Amounts remaining in the Settlement Account six (6) months after disbursements of all Refunds (i.e., consisting of undeliverable/un-negotiated Refund payments) shall be distributed as follows: (a) to the extent American paid more than $7,500,000.00 to fund the Settlement Account, remaining funds up to the difference between the amount American paid to fund the Settlement Account and $7,500,000.00 will be returned to American; and (b) all other remaining funds shall be distributed to Valid Claimants for whom Refund payments were effectuated if there are sufficient remaining funds to warrant such a distribution (including the administrative costs thereof), and shall otherwise be distributed via cy pres to such recipient(s) as are agreed on by the Parties. The administrative costs of any secondary distribution will be paid from the remaining funds and will not increase American’s payment obligation under the Settlement. D. Under no circumstances shall American be obligated to pay more under this Settlement Agreement than the Total Claim Amount or $7,500,000.00, whichever is greater, excluding Notice and Administration ExpensesCosts, the Attorneys’ Fee Award, and may be applied toward the Minimum Settlement Amount only as described below. No later than thirty (30) days from the date of the Final Approval Order and Judgment, Xxxxxxxx-Xxxxx shall ensure that all Notice and Administration Expenses (unless otherwise agreed by Xxxxxxxx-Xxxxx and the Settlement Administrator), Service Awards, and Fee Award and Costs approved by the Court are paid. As soon as reasonably practicable after all validly submitted Claims have been reviewed and approved or rejected, the Settlement Administrator shall notify the Parties of the total Amount Payable for Approved Claims. No later than thirty (30) days from the date that the Settlement Administrator provides such notice, Xxxxxxxx-Xxxxx shall deposit, at a minimum, funds into the Settlement Fund sufficient to satisfy its obligation to pay the Minimum Settlement Amount for Approved Claims, and if the Amount Payable for Approved Claims exceeds the Minimum Settlement Amount, Xxxxxxxx-Xxxxx shall deposit funds in the Settlement Fund to satisfy any additional Approved Claims in an amount not to exceed the Maximum Settlement Amount, notwithstanding that there may be a minority of Claims subject to appeal or further determination. If the Amount Payable for Approved Claims is less than the Minimum Settlement Amount, Xxxxxxxx-Xxxxx shall receive a credit towards its other obligations: first to Notice and Administration Expenses, and second to the Fee Award and Costs, in which case Xxxxxxxx-Xxxxx must fund the Settlement sufficient to satisfy the Amount Payable for Approved Claims and the Minimum Settlement Amount less the applicable credits described herein. If the sum of the Amount Payable for Approved Claims exceeds $13.5 million, then payments to Participating Settlement Class Members shall be reduced pro rata so that the total of all payments for valid Claims under the Settlement Agreement does not exceed the Maximum Settlement Amount. If the Amount Payable for Approved Claims and the cost of Notice and Administration Expenses and the Fee Award and Costs together amount to less than the Minimum Settlement Amount, the Parties will confer and jointly submit a proposal to the Court regarding the proposed distribution of the remaining Settlement Funds.