Common use of Handling and Disbursement of Funds by the Escrow Agent Clause in Contracts

Handling and Disbursement of Funds by the Escrow Agent. 3.1. No monies will be disbursed from the Settlement Fund until after the Effective Date except: (i) for Administrative Costs as provided in ¶ 3.4 below; (ii) for a Fee and Expense Award as provided in ¶ 8.2 below; (iii) to refund the Settlement Fund in the event that the Stipulation shall be terminated, or be canceled, or shall not become effective for any reason, as provided in ¶ 11.8 below, if applicable; and (iv) To pay Taxes and Tax Expenses (as defined in ¶ 4.1 below) on the income earned by the Settlement Fund. Taxes and Tax Expenses shall be paid out of the Settlement Fund and shall be considered to be a cost of administration of the Settlement and shall be timely paid by the Escrow Agent without prior Order of the Court. 3.2. All funds held by the Escrow Agent shall be deemed to be in the custody of the Court and shall remain subject to the jurisdiction of the Court until such time as the funds shall be distributed or returned pursuant to the terms of this Stipulation and/or further order of the Court. The Escrow Agent shall invest the Settlement Fund in short term instruments backed by the full faith and credit of the United States Government or fully insured by the United States Government or an agency thereof, and shall reinvest the proceeds of these instruments as they mature in similar instruments at their then-current market rates. The Escrow Agent shall bear all responsibility and liability for managing the Escrow Account and cannot assign or delegate its responsibilities without approval of the Parties. Defendants, their counsel, and the other Released Parties shall have no responsibility for, interest in, or any liability whatsoever with respect to any investment or management decisions executed by the Escrow Agent. The Settlement Fund shall bear all risks related to the investments of the Settlement Amount in accordance with the guidelines set forth in this ¶ 3.2. 3.3. The Escrow Agent shall not disburse the Settlement Fund except as provided in this Stipulation, by an order of the Court, or with the written agreement of Defense Counsel. 3.4. At any time after the Court grants preliminary approval of the Settlement, the Escrow Agent may, without further approval from Defendants or the Court, disburse at the direction of Lead Counsel up to $125,000 (One Hundred Twenty-Five Thousand U.S. Dollars) from the Settlement Fund prior to the Effective Date to pay Administrative Costs. After the Effective Date, additional amounts, up to $50,000 (Fifty Thousand Dollars), may be transferred from the Settlement Fund to pay for any necessary additional Administrative Costs without further order of the Court.

Handling and Disbursement of Funds by the Escrow Agent. 3.1. No monies will be disbursed from the Settlement Fund until after the Effective Date except: (ia) for Administrative Costs as As provided in ¶ 3.4 below3.5 below (regarding Administrative Costs); (iib) for a Fee and Expense Award as As provided in ¶ 8.2 belowbelow (regarding attorneys’ fees and expenses); (iiic) to refund the Settlement Fund in the event that the Stipulation shall be terminated, or be canceled, or shall not become effective for any reason, as As provided in ¶ 11.8 10.9 below, if applicableapplicable (regarding refund of the Settlement Fund); and (ivd) To pay Taxes and Tax Expenses (as defined in ¶ 4.1 below) on the income earned by the Settlement Fund. Taxes and Tax Expenses shall be paid out of the Settlement Fund and shall be considered to be a cost of administration of the Settlement and shall be timely paid by the Escrow Agent without prior Order of the Court. 3.2. All funds held by in the Escrow Agent Account, and all earnings thereon, shall be deemed to be in the custody of the Court (in custodia legis), and shall remain subject to the jurisdiction of the Court until such time as the funds shall be distributed have been disbursed or returned to Defendants and/or the Insurers, in proportion to their contribution to the Settlement Fund, pursuant to the terms of this Stipulation Stipulation, and/or further order of the Court. The Court’s custody of such funds shall not in any way limit or restrict the Escrow Agent and Claims Administrator from distributing, or returning to Defendants and/or the Insurers, in proportion to their contribution to the Settlement Fund, such funds in accordance with the terms and provisions of this Stipulation and the Settlement except as may otherwise be ordered by the Court. 3.3. The Escrow Agent shall invest the Settlement Fund in short term instruments United States Treasury Bills backed by the full faith and credit of the United States Government or fully insured by the United States Government or an agency thereof, and shall reinvest the proceeds of these instruments as they mature in similar instruments at their then-current market rates. In the event that the yield on United States Treasury Bills is negative, in lieu of purchasing such Treasury Bills, all or any portion of the funds held by the Escrow Agent may be deposited in any account that is fully insured by the Federal Deposit Insurance Corporation (“FDIC”) or backed by the full faith and credit of the United States. Additionally, if short-term placement of the funds is necessary, all or any portion of the funds held by the Escrow Agent may be deposited in any account that is fully insured by the FDIC or backed by the full faith and credit of the United States. The Escrow Agent shall bear all responsibility and liability for managing the Escrow Account and cannot assign or delegate its responsibilities without approval of the Settling Parties. Defendants, their counselDefendants’ Counsel, and the other Released Parties Defendants’ Releasees shall have no responsibility for, interest in, or any liability whatsoever with respect to any investment or management decisions executed by the Escrow Agent. The Settlement Fund shall bear all risks related to the investments of the Settlement Amount in accordance with the guidelines set forth in this ¶ 3.2. 3.33.4. The Escrow Agent shall not disburse the Settlement Fund except as provided in this Stipulation, by an order of the Court, or with the written agreement of Defense Counselcounsel for the Settling Parties. 3.43.5. At any time after the Court grants preliminary approval of the Settlement, the Escrow Agent may, without further approval from Defendants or the Court, disburse at the direction of Lead Counsel up to $125,000 250,000 (One Two Hundred Twenty-Five Fifty Thousand U.S. Dollars) from the Settlement Fund prior to the Effective Date Date‌ to pay Administrative Costs. After the Effective Date, additional amountsamounts actually incurred, totaling up to $50,000 100,000 (Fifty One Hundred Thousand Dollars), may be transferred from the Settlement Fund to pay for any necessary additional Administrative Costs without further order of the Court. In the event that the Settlement is terminated pursuant to the terms of this Stipulation, all Administrative Costs paid or incurred, including any related fees, shall not be returned or repaid to Defendants, the Insurers, any of the other Defendants’ Releasees, or any other person or entity who or which paid any portion of the Settlement Amount.

Handling and Disbursement of Funds by the Escrow Agent. 3.1. No monies will be disbursed from the Settlement Fund until after the Effective Date except: (ia) for Administrative Costs as As provided in ¶ 3.4 below; (iib) for a Fee and Expense Award as As provided in ¶ 8.2 below; (iiic) to refund the Settlement Fund in the event that the Stipulation shall be terminated, or be canceled, or shall not become effective for any reason, as As provided in ¶ 11.8 10.10 below, if applicable; and (ivd) To pay Taxes and Tax Expenses (as defined in ¶ 4.1 below) on the income earned by the Settlement Fund. Taxes and Tax Expenses shall be paid out of the Settlement Fund and shall be considered to be a cost of administration of the Settlement and shall be timely paid by the Escrow Agent Co-Agents without prior Order of the Court. 3.2. All funds held by the Escrow Agent shall be deemed to be in the custody of the Court and shall remain subject to the jurisdiction of the Court until such time as the funds shall be distributed or returned pursuant to the terms of this Stipulation and/or further order of the Court. The Escrow Agent shall invest the Settlement Fund in short term instruments backed by the full faith and credit of the United States Government or fully insured by the United States Government or an agency thereof, and shall reinvest the proceeds of these instruments as they mature in similar instruments at their then-current market rates. The Escrow Agent shall bear all responsibility and liability for managing the Escrow Account and cannot assign or delegate its responsibilities without approval of the Settling Parties. Defendants, their counsel, and the other Released Parties shall have no responsibility for, interest in, or any liability whatsoever with respect to any investment or management decisions executed by the Escrow Agent. The Settlement Fund shall bear all risks related to the investments of the Settlement Amount in accordance with the guidelines set forth in this ¶ 3.2. 3.3. The Escrow Agent shall not disburse the Settlement Fund except as provided in this Stipulation, by an order of the Court, or with the written agreement of Defense Counselcounsel for Defendants. 3.4. At any time after the Court grants preliminary approval of the Settlement, the Escrow Agent may, without further approval from Defendants or the Court, disburse at the direction of Lead Plaintiff’s Counsel up to $125,000 150,000 (One Hundred Twenty-Five Fifty Thousand U.S. Dollars) from the Settlement Fund prior to both before and after the Effective Date to pay Administrative Costs. After the Effective Date, additional amounts, up to $50,000 (Fifty Thousand Dollars), may be transferred from the Settlement Fund to pay for any necessary additional Administrative Costs without further order of the Court.