Common use of SETTLEMENT CONSIDERATION – THE QUALIFIED SETTLEMENT FUND Clause in Contracts

SETTLEMENT CONSIDERATION – THE QUALIFIED SETTLEMENT FUND. 10.1. The Qualified Settlement Fund is an account maintained by XXXX, which account 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 therein are distributed pursuant to further order(s) of the Court, and into which the Settlement Payment shall be deposited and held in escrow. 10.2. The Settlement Payment, plus any and all interest earned thereon, shall constitute the Qualified Settlement Fund and will be subject to the terms of this Amended Settlement Stipulation. Any interest earned on the money held in the Qualified Settlement Fund shall be credited by XXXX to the Qualified Settlement Fund. In accordance with Section III.A. of the Second Amended Order Regarding the Deposit and Investment of Registry Funds dated December 1, 2016, and Local Civil Rule 67.1, the Clerk of the Court shall deduct from the income earned on the money in the Qualified Settlement Fund the fee authorized by the Judicial Conference of the United States as currently set by the Director of the Administrative Office. 10.3. The Parties agree that the Qualified Settlement Fund is intended to be a “qualified settlement fund” within the meaning of Treasury Regulation § 1.468B-1. In addition, XXXX shall timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation back election,” as described in Treasury Regulation § 1.468B- 1(j), to cause the Qualified Settlement Fund to come into existence at the earliest allowable date, and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith. For the purpose of § 1.468B of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, the “administrator” shall be XXXX. Class Counsel or the Settlement Administrator shall be responsible for filing or causing to be filed all informational and other tax returns as may be necessary or appropriate (including, without limitation, the returns described in Treasury Regulation § 1.468B-2(k)) for the Qualified Settlement Fund. XXXX shall be responsible for causing payment to be made from the Qualified Settlement Fund of any Taxes owed with respect to the Qualified Settlement Fund. Defendants’ Releasees shall not have any liability or responsibility for any such Taxes. Upon written request, Defendants will provide to XXXX the statement described in Treasury Regulation § 1.468B-3(e). 10.4. The Parties agree that the Qualified Settlement Fund shall be used to pay any and all: (a) Taxes, (b) Settlement Administration Expenses, (c) Case Contribution Award awarded by the Court, and (d) attorneys’ fees and expenses awarded by the Court. Defendants shall have no responsibility for the administration of the Qualified Settlement Fund or for payment of any costs and/or expenses referenced in items (a) through (d) of this Section 10.4. The balance remaining in the Qualified Settlement Fund, that is, the Net Settlement Fund, shall be distributed to Settlement Class members pursuant to the Plan of Allocation. 10.5. Any tax returns prepared for the Qualified Settlement Fund (as well as the election set forth therein) shall reflect that all Taxes on the income earned by the Qualified Settlement Fund shall be paid out of the Qualified Settlement Fund as provided herein. Defendants’ Releasees shall have no responsibility or liability for the acts or omissions of Class Counsel, the Settlement Administrator, XXXX or their agents with respect to the payment of Taxes, as described herein.

SETTLEMENT CONSIDERATION – THE QUALIFIED SETTLEMENT FUND. 10.1. The Qualified Settlement Fund is an account maintained by XXXX, at the Financial Institution which account 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 therein are distributed pursuant to this Settlement Stipulation and/or further order(s) of the Court, and into which the Settlement Payment shall be deposited and held in escrow. 10.2. The Settlement Payment, plus any and all interest earned thereon, shall constitute the Qualified Settlement Fund and will be subject to the terms of this Amended Settlement Stipulation. Any interest earned on the money held in the Qualified Settlement Fund shall be credited by XXXX to the Qualified Settlement Fund. In accordance with Section III.A. of the Second Amended Order Regarding the Deposit and Investment of Registry Funds dated December 1, 2016, and Local Civil Rule 67.1, the Clerk of the Court shall deduct from the income earned on the money in the Qualified Settlement Fund the fee authorized by the Judicial Conference of the United States as currently set by the Director of the Administrative Office. 10.3. The Parties agree that the Qualified Settlement Fund is intended to be a “qualified settlement fund” Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-1. In addition, XXXX shall timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation back election,” as described in Treasury Regulation § 1.468B- 1(j), to cause the Qualified Settlement Fund to come into existence at the earliest allowable date, 1.468B-1 and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith. For the purpose of § 1.468B of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, the “administrator” shall be XXXX. Class Counsel or the Settlement Administrator Administrator, as administrator of the Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall be solely responsible for filing or causing to be filed all informational and other tax returns as may be necessary or appropriate (including, without limitation, the returns described in Treasury Regulation § 1.468B-2(k)) for the Qualified Settlement Fund. XXXX Class Counsel or the Settlement Administrator also shall be solely responsible for causing payment to be made from the Qualified Settlement Fund of any Taxes owed with respect to the Qualified Settlement Fund. Defendants’ Releasees shall not have any liability or responsibility for any such Taxes. Upon written request, Defendants will provide to XXXX Class Counsel or the Settlement Administrator the statement described in Treasury Regulation § 1.468B-3(e). Class Counsel or the Settlement Administrator, as administrator of the Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation back election,” as described in Treasury Regulation § 1.468B-1(j), to cause the Qualified Settlement Fund to come into existence at the earliest allowable date, and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith. 10.410.3. The Parties agree that the Qualified Settlement Fund shall be used to pay any and all: (a) Taxes, (b) Settlement Administration Expenses, (c) Case Contribution Award awarded by the Court, and (d) attorneys’ fees and expenses awarded by the Court. Defendants shall have no responsibility for the administration of the Qualified Settlement Fund or for payment of any costs and/or expenses referenced in items (a) through (d) of this Section 10.410.3. The balance remaining in the Qualified Settlement Fund, that is, the Net Settlement Fund, shall be distributed to Settlement Class members pursuant to the Plan of Allocation. 10.510.4. Any tax returns prepared for the Qualified Settlement Fund (as well as the election set forth therein) shall reflect that all Taxes on the income earned by the Qualified Settlement Fund shall be paid out of the Qualified Settlement Fund as provided herein. Defendants’ Releasees shall have no responsibility or liability for the acts or omissions of Class Counsel, Counsel or the Settlement Administrator, XXXX Administrator or their agents with respect to the payment of Taxes, as described herein.

SETTLEMENT CONSIDERATION – THE QUALIFIED SETTLEMENT FUND. 10.1. The Qualified Settlement Fund is an account maintained by XXXX, at the Financial Institution which account 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 therein are distributed pursuant to this Settlement Stipulation and/or further order(s) of the Court, and into which the Settlement Payment shall be deposited and held in escrow. 10.2. The Settlement Payment, plus any and all interest earned thereon, shall constitute the Qualified Settlement Fund and will be subject to the terms of this Amended Settlement Stipulation. Any interest earned on the money held in the Qualified Settlement Fund shall be credited by XXXX to the Qualified Settlement Fund. In accordance with Section III.A. of the Second Amended Order Regarding the Deposit and Investment of Registry Funds dated December 1, 2016, and Local Civil Rule 67.1, the Clerk of the Court shall deduct from the income earned on the money in the Qualified Settlement Fund the fee authorized by the Judicial Conference of the United States as currently set by the Director of the Administrative Office. 10.3. The Parties agree that the Qualified Settlement Fund is intended to be a “qualified settlement fund” Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-1. In addition, XXXX shall timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation back election,” as described in Treasury Regulation § 1.468B- 1(j), to cause the Qualified Settlement Fund to come into existence at the earliest allowable date, 1.468B-1 and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith. For the purpose of § 1.468B of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, the “administrator” shall be XXXX. Class Counsel or the Settlement Administrator Administrator, as administrator of the Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall be solely responsible for filing or causing to be filed all informational and other tax returns as may be necessary or appropriate (including, without limitation, the returns described in Treasury Regulation § 1.468B-2(k)) for the Qualified Settlement Fund. XXXX Class Counsel or the Settlement Administrator also shall be solely responsible for causing payment to be made from the Qualified Settlement Fund of any Taxes owed with respect to the Qualified Settlement Fund. Defendants’ Releasees shall not have any liability or responsibility for any such Taxes. Upon written request, Defendants Avon will provide to XXXX Class Counsel or the Settlement Administrator the statement described in Treasury Regulation § 1.468B-3(e). Class Counsel or the Settlement Administrator, as administrator of the Qualified Settlement Fund within the meaning of Treasury Regulation § 1.468B-2(k)(3), shall timely make such elections as are necessary or advisable to carry out this paragraph, including, as necessary, making a “relation back election,” as described in Treasury Regulation § 1.468B-1(j), to cause the Qualified Settlement Fund to come into existence at the earliest allowable date, and shall take or cause to be taken all actions as may be necessary or appropriate in connection therewith. 10.410.3. The Parties agree that the Qualified Settlement Fund shall be used to pay any and all: (a) Taxes, (b) Settlement Administration Expenses, (c) Case Contribution Award awarded by the Court, and (d) attorneys’ fees and expenses awarded by the Court. Defendants and their Insurer shall have no responsibility for the administration of the Qualified Settlement Fund or for payment of any costs and/or expenses referenced in items (a) through (d) of this Section 10.410.3. The balance remaining in the Qualified Settlement Fund, that is, the Net Settlement Fund, shall be distributed to Settlement Class members pursuant to the Plan of Allocation. 10.510.4. Any tax returns prepared for the Qualified Settlement Fund (as well as the election set forth therein) shall reflect that all Taxes on the income earned by the Qualified Settlement Fund shall be paid out of the Qualified Settlement Fund as provided herein. Defendants’ Releasees shall have no responsibility or liability for the acts or omissions of Class Counsel, Counsel or the Settlement Administrator, XXXX Administrator or their agents with respect to the payment of Taxes, as described herein.