The Settlement Proceeds. The Settlement Administrator shall be responsible for establishing a Qualified Settlement Fund (“QSF”) pursuant to Section 468B(g) of the Internal Revenue Code for purposes of administering the Settlement, as well as issuing the necessary checks for all Settlement Awards, issuing all required tax documents (such as Forms W-2 and 1099-MISC), performing all related tax reporting to taxing authorities and to Defendants. Subject to Court approval, Defendants agree to transfer $1,100,000 (i.e., the Gross Settlement Fund) to the QSF as consideration for this Settlement Agreement. As detailed below, the Gross Settlement Fund shall be used to pay for the following expenditures as set forth in Section II.C, subject to Court approval: (1) all Settlement Awards to Settlement Class Members; (2) the Class Representative Service Award; (3) the Settlement Administration Costs Award; and (4) the Attorneys’ Fees and Costs Award.
The Settlement Proceeds. Defendant agrees that the Settlement Class shall be entitled to claims in Defendant’s bankruptcy case which in the aggregate shall equal the greater of (1) the funds which remain in Debtor’s possession after payment of all other allowed claims in the bankruptcy case, or (2) $1,950,000 gross, (hereinafter defined as the “Settlement Proceeds”), subject to Superior Court and Bankruptcy Court approval. Under either (1) or (2) above, the Settlement Proceeds would be comprised of multiple distributions. A portion .of the Settlement Class’s claims are wage claims entitled to priority status (the proposed amount of which is detailed below in Section II.C.1., subject to bankruptcy court approval) (“Priority Portion”). The Priority Portion would be paid as a Class Five claim consistent with RCKC’s confirmed plan. The remaining portion of the Settlement Proceeds includes a non-priority claim (“Remaining Portion”). The Remaining Portion would be treated as a Class Seven general unsecured claim, to be paid on a pro-rata basis with the other allowed claims in Class Seven. Under either scenario, from the Settlement Proceeds, the following distributions will be made:
1. Incentive awards to Plaintiffs of $5,000 each, subject to King County Superior Court and Bankruptcy Court approval, for their service as Settlement Class representatives. If the Courts award anything less than $5,000 each in relation to the incentive award request, then the difference between the amounts proposed and the amounts received by Plaintiffs shall be treated as part of the Class Fund.
2. Settlement administration expenses not to exceed $20,000, subject to King County Superior Court and Bankruptcy Court approval. If the Courts award anything less than $20,000 and/or the actual cost of the settlement administration expenses in relation to the administration expenses request, then the difference between the amount awarded by the Court(s) and the actual cost of the expenses shall be treated as part of the Class Fund.
The Settlement Proceeds. Defendants agree to make the following payments, which total $385,000 in the aggregate (the “Settlement Fund”), as part of this Settlement Agreement. This total amount is broken down into the following payments:
1. Defendants shall pay $4,583.33 on or before April 10, 2019, as the first Monthly Payment.
2. Each month thereafter, Defendants shall pay $4,583.33 (the “Monthly Payment”) no later than the tenth (10th) day of the month in which the payment is due. Class Counsel will provide a bank account into which the Defendants shall make direct deposit of the Monthly Payments. Class Counsel shall hold the Monthly Payments in trust until the Effective Date. If the Court does not order final approval of the settlement, the Monthly Payments shall be refunded to Defendants.
3. Within five (5) days of the Effective Date, Defendants shall pay $275,000.00 (“Bulk Payment”) to Class Counsel.
The Settlement Proceeds. Subject to Court approval, Defendant agrees to make the following non‐ reversionary payments, which total $2,550,000 in the aggregate (the “Settlement Proceeds”), as part of this Settlement Agreement:
1. A payment to the Settlement Classes of $1,100,000 (the “Class Fund”). Subject to Section II.D.3., below, this payment will be distributed to members of the Settlement Classes in accordance with Section II.C.
2. A payment of $7,500 to each named Plaintiff for his service as a representative of the Settlement Classes. If the Court awards the named Plaintiffs anything less than $7,500 each ($30,000 total) in relation to the incentive award request, then the difference between the amounts proposed and the amounts received by Plaintiffs shall be treated as part of the Class fund.
3. A payment of $20,000 for settlement administration expenses. If the Court awards anything less than $20,000 in relation to the settlement administration expenses request, then the difference between the amount proposed and the amount received by the settlement administrator shall be treated as part of the Class Fund.
4. A payment of $1,400,000 for attorneys’ fees and costs of litigation in accordance with relevant statutory fee‐shifting and cost‐ shifting principles. Within seven days of the Effective Date of this Settlement Agreement, Defendant shall pay a total of $2,550,000 into a Qualified Settlement Fund (“QSF”) established by the Settlement Administrator for this Settlement. The Settlement Administrator shall be responsible for making the payments described below from the QSF. The Settlement Proceeds in the QSF shall be used to satisfy all of the following: (1) the settlement awards to be paid to members of the Settlement Classes (hereafter, the “Settlement Awards”), (2) all employee‐side payroll taxes and withholdings associated with the Settlement Awards, (3) the service awards to be paid to the Plaintiffs (hereafter, the “Service Awards”), (4) the award of attorneys’ fees and costs to Class Counsel (hereafter, the “Attorneys’ Fees and Costs Award”), and (5) the award of settlement administration expenses (hereafter, the “Settlement Administration Expenses Award”) to be paid to the Settlement Administrator, all as approved by the Court. Except as set forth in Section II.D.3., below, the Settlement Proceeds are not subject to any reversion of funds to Defendant, such that the entire amount of the Settlement Proceeds will be payable if the settlement is approved by the Court a...
The Settlement Proceeds. Subject to Court approval, Defendants agree to make the following non-reversionary payments, which total $750,000 in the aggregate (the “Settlement Proceeds”), as part of this Settlement Agreement:
The Settlement Proceeds. Subject to the Superior Court’s entry of the Final Approval Order and it becomes Final, , Defendants agree to pay a maximum amount of One Million Three Hundred Seventy-Five Thousand Dollars ($1,375,000.00) (“Settlement Proceeds”). This amount does not include the employer’s share of payroll taxes and associated payment that an employer is required to make when making standard wage payment to employees, such as FICA, FUTA, which Defendants agree to pay separately and in addition to the Settlement Proceeds. From the Settlement Proceeds, the following distributions will be made, subject to Superior Court’s approval:
1. Incentive awards to Plaintiffs of $2,500 each for their service as Settlement Class representatives. If the Courts award anything less than $2,500 each in relation to the incentive award request, then the difference between the amounts proposed and the amounts received by Plaintiffs shall be treated as part of the Class Fund.
2. Settlement administration expenses not to exceed $6,000. If the Courts award anything less than $6,000 (for example, the actual cost of the settlement administration expenses is less than $6,000), then the difference between the amount awarded by the Court shall be treated as part of the Class Fund.
