EXHIBIT H: ESCROW AGREEMENT CUSTODIAN/ESCROW AGREEMENT
EXHIBIT 10.1H
EXHIBIT H: ESCROW AGREEMENT
CUSTODIAN/ESCROW AGREEMENT
This Custodian/Escrow Agreement dated [●], 2023, is made among (i) The Chemours Company, The Chemours Company FC, LLC, DuPont de Nemours, Inc., Corteva, Inc., and X.X. XxXxxx de Nemours and Company n/k/a EIDP, Inc. (each a “Settling Defendant” and collectively, the “Settling Defendants”), (ii) Xxxxxxx X. Xxxxxx and the law firm of Xxxxxxx & London, 00 Xxxxxx Xxxx, 0xx Xxxxx, Xxx Xxxx, XX 00000; Xxxxx Xxxxx and the law firm of Baron & Xxxx, 0000 Xxx Xxxx Xxxxxx, Xxxxx 0000, Xxxxxx, Xxxxx, 00000; Xxxx X. Xxxxxx and the law firm of Napoli Xxxxxxxx, 0000 Xxxxxxx Xxxxx xx Xxxx, Xxx Xxxx, Xxxxxx Xxxx 00000 (collectively, “Class Counsel”), Xxxxxxx Xxxxxxxxx (the “Special Master”) and THE HUNTINGTON NATIONAL BANK, as Custodian/Escrow agent (“Custodian/Escrow Agent”).
Recitals
A. This Custodian/Escrow Agreement governs the deposit, investment and disbursement of the Settlement Fund pursuant to the Settlement Agreement (the “Settlement Agreement”) dated [●], 2023 attached hereto as Exhibit B, entered into by the Settling Defendants and certain other parties thereto, which has been submitted for approval to the United States District Court for the District of South Carolina, Charleston Division (the “Court”), in the multi-district litigation captioned In Re: Aqueous Film-Forming Foams Products Liability Litigation, MDL No. 2:18-mn-2873 (D.S.C.) (the “MDL”).
B. Pursuant to the terms of the Settlement Agreement, the Settling Defendants have agreed to pay or cause to be paid the Settlement Amount to the Qualified Settlement Fund in full settlement of the claims brought against the Settling Defendants in the MDL and certain other Litigation.
C. The Custodian/Escrow Account established pursuant to this Custodian/Escrow Agreement is intended to qualify as a “qualified settlement fund” within the meaning of Treasury Regulations §1.468B-1 et seq. for all U.S. federal and applicable state and local income tax purposes.
D. The Settlement Amount is to be deposited into the Custodian/Escrow Account and used to satisfy payments to Settlement Class Members, payments for attorneys’ fees and expenses approved by the Court, payments of tax liabilities and expenses of the Custodian/Escrow Account and certain other costs, in each case, subject to the terms and conditions of the Settlement Agreement and this Custodian/Escrow Agreement.
E. The Court has approved the Custodian/Escrow Agent and this Custodian/Escrow Agreement.
F. Unless otherwise defined herein, all capitalized terms shall have the meaning ascribed to them in the Settlement Agreement.
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EXHIBIT 10.1H
Agreement
1. Appointment of Custodian/Escrow Agent. The Custodian/Escrow Agent is hereby appointed to receive, deposit and disburse the Settlement Amount upon the terms and conditions provided in this Custodian/Escrow Agreement, the Settlement Agreement and any other exhibits or schedules later annexed hereto and made a part hereof. The Parties agree that the Custodian/Escrow Agent shall be the “Escrow Agent” as defined in the Settlement Agreement, this Custodian/Escrow Agreement shall be the “Escrow Agreement” as such term is defined in the Settlement Agreement, and the Custodian/Escrow Account shall be the “Qualified Settlement Fund” as such term is defined in the Settlement Agreement.
2. The Custodian/Escrow Account. The Custodian/Escrow Agent shall establish and maintain a custodian/escrow account titled as [●] (the “Custodian/Escrow Account”). Pursuant to the Settlement Agreement, the Settling Defendants shall cause the Settlement Amount to be deposited into the Custodian/Escrow Account within the latest of (i) ten (10) “Business Days” (hours and days of the week that Custodian/Escrow Agent is open for business) following entry of the Court’s order preliminarily approving the settlement (the “Preliminary Approval”) and (ii) seven (7) Business Days following the establishment by the Custodian/Escrow Agent of the Custodian/Escrow Account and the Court approval of the Custodian/Escrow Agent and this Custodian/Escrow Agreement; provided that if the Custodian/Escrow Agent has not provided to Settling Defendants wire transfer instructions and any other documentation reasonably necessary to facilitate payment of the Settlement Amount by the date seven (7) Business Days before the deadline for payment specified herein, Settling Defendants shall not be obligated to pay such amount until seven (7) Business Days after receiving such wire transfer instructions and documentation. Custodian/Escrow Agent shall receive the Settlement Amount into the Custodian/Escrow Account; the Settlement Amount and all interest accrued thereon shall be referred to herein as the “Settlement Fund.” The Settlement Fund shall be held and invested on the terms and subject to the limitations set forth herein, and shall be released by Custodian/Escrow Agent in accordance with the terms and conditions hereinafter set forth and set forth in the Settlement Agreement.
In no event shall any Settling Defendant have any liability whatsoever, whether to the Custodian/Escrow Agent, Class Counsel, any Settlement Class Member (as defined in the Settlement Agreement) or otherwise, with respect to the Settlement Amount or the Settlement Fund once the Settlement Amount is paid in full to the Custodian/Escrow Account in accordance with the Settlement Agreement and receipt of payment is verified by Custodian/Escrow Agent.
3. Investment of Settlement Fund. The Custodian/Escrow Agent shall invest the Settlement Fund exclusively in interest-bearing instruments or accounts backed by the full faith and credit of the United States Government or fully insured by the United States Government or an agency thereof, including a U.S. Treasury Fund or a bank account that is either (a) fully insured by the Federal Deposit Insurance Corporation (“FDIC”) or (b) secured by instruments backed by the full faith and credit of the United States Government, in each case, as further provided in this Section 3. Prior to the Effective Date, unless otherwise mutually agreed by the parties, the Custodian/Escrow Agent shall invest the Settlement Fund in compliance with the preceding sentence as follows: (i) except for $5,000,000 covered in clause (ii), upon receipt of
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EXHIBIT 10.1H
the Settlement Amount, exclusively in successive U.S. Treasury bonds or bills, each with a thirty-day maturity and (ii) $5,000,000 held in immediately available funds. Following the Effective Date, unless otherwise mutually agreed by the Custodian/Escrow Agent, Class Counsel and the Special Master, the Custodian/Escrow Agent shall invest the Settlement Fund, in compliance with this Section 3. To the extent the investment is not otherwise specified herein, the Settlement Fund will be invested conservatively in a manner designed to assure timely availability of funds in accordance with the distribution schedule contemplated by the Settlement Agreement, protection of principal, and avoidance of concentration risk, and shall be invested only in short-term instruments or accounts. To the extent the investment is not otherwise specified herein, the Settlement Fund shall at all times remain available for distribution in accordance with the terms hereof and the Settlement Agreement.
The Settling Defendants shall not bear any responsibility for or liability related to the investment of the Settlement Fund by the Custodian/Escrow Agent.
4. Custodian/Escrow Funds Subject to Jurisdiction of the Court. The Qualified Settlement Fund shall remain subject to the jurisdiction of the Court until such time as the Settlement Fund shall have been distributed, pursuant to the terms of the Settlement Agreement and order(s) of the Court contemplated thereby.
5. Tax Treatment & Reporting. The Custodian/Escrow Account shall be structured and operated at all times in a manner such that it qualifies as a “qualified settlement fund” within the meaning of Treasury Regulation §1.468B-1. The Special Master, the Settling Defendants, and any other relevant parties shall cooperate to timely make such elections as necessary or advisable to fulfill the requirements of such Treasury Regulation, including making any “relation-back election” under Treasury Regulation § 1.468B-1(j)(2) required to treat the Custodian/Escrow Account as a qualified settlement fund from the earliest permitted date. For purposes of §468B of the Internal Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, the “administrator” of the qualified settlement fund shall be the Special Master. The Special Master shall timely and properly prepare, deliver to all necessary parties for signature, and file all necessary documentation for any elections required under Treas. Reg. §1.468B-1. The Special Master shall timely and properly prepare and file or cause to be prepared and filed any information and other tax returns necessary or advisable with respect to the Custodian/Escrow Account and the distributions and payments therefrom including without limitation the returns described in Treas. Reg. §1.468B-2(k), and to the extent applicable Treas. Reg. §1.468B-2(1), and as further provided in the Settlement Agreement. The “taxable year” of the Custodian/Escrow Account shall be the “calendar year” as such terms are defined in Section 441 of the Code. The Custodian/Escrow Account shall use the accrual method of accounting as defined in Section 446(c) of the Code.
6. Tax Payments. All Taxes and Tax Expenses (each as defined in the Settlement Agreement) with respect to the Custodian/Escrow Account, as more fully described in the Settlement Agreement, shall be treated as and considered to be a cost of administration of the Custodian/Escrow Account and the Custodian/Escrow Agent shall timely pay such Taxes and Tax Expenses out of the Settlement Fund without prior order of the Court, as directed by the Special Master and in accordance with the Settlement Agreement. The Special Master shall be responsible for the timely and proper preparation and delivery of any necessary documentation for signature by all necessary parties, and the timely filing of all tax returns and other tax reports required by law with respect to the Custodian/Escrow
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Account. The Special Master shall be responsible for ensuring that the Custodian/Escrow Account complies with all withholding requirements (including by instructing the Custodian/Escrow Agent to withhold any required amounts) with respect to payments made by the Custodian/Escrow Account. The Custodian/Escrow Agent, as directed by the Special Master, will deduct and withhold any Taxes required to be deducted and withheld by applicable law, including but not limited to required withholding in the absence of proper Tax documentation, and shall remit such Taxes to the appropriate authorities in accordance with applicable law. Any amounts deducted or withheld by the Custodian/Escrow Agent (or any other withholding agent) with respect to payments made by the Custodian/Escrow Account shall be treated for all purposes as though such amounts had been distributed to the Person in respect of which such deduction or withholding was made. The Custodian/Escrow Agent shall not be responsible for any income reporting to the IRS with respect to income earned on the Settlement Fund, however the Custodian/Escrow Agent shall comply with all instructions received from the Special Master regarding the withholding of any amount on account of Taxes and shall cooperate with other requests made by the Special Master to enable the Special Master to fulfill its responsibilities under the Settlement Agreement with respect to tax matters.
7. Disbursement Instructions
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EXHIBIT 10.1H
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EXHIBIT 10.1H
8. Fees. The Custodian/Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached as Exhibit C. All fees and expenses of Custodian/Escrow Agent shall be paid solely from the Settlement Fund. The Custodian/Escrow Agent may pay itself such fees from the Settlement Fund only after such fees have been approved for payment pursuant to a Joint Release Instruction. If Custodian/Escrow Agent is asked to provide additional services a separate agreement and fee schedule will be entered into.
9. Duties, Liabilities and Rights of Custodian/Escrow Agent. This Custodian/Escrow Agreement sets forth all of the obligations of Custodian/Escrow Agent, and no additional obligations shall be implied from the terms of this Custodian/Escrow Agreement or any other agreement, instrument or document.
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10. Non-Assignability by Custodian/Escrow Agent. Custodian/Escrow Agent’s rights, duties and obligations hereunder may not be assigned or assumed without the written consent of the persons necessary for a Joint Release Instruction.
11. Resignation of Custodian/Escrow Agent. Custodian/Xxxxxx Agent may, in its sole discretion, resign and terminate its position hereunder at any time following 120 days prior written notice to the parties to the Custodian/Escrow Agreement herein. On the effective date of such resignation, Custodian/Escrow Agent shall deliver this Custodian/Escrow Agreement together with any and all related instruments or documents and all funds in the Custodian/Escrow Account to the successor Custodian/Escrow Agent, subject to this Custodian/Escrow Agreement. If a successor Xxxxxxxxx/Xxxxxx Agent has not been appointed prior to the expiration of 120 days following the date of the notice of such resignation, then Custodian/Escrow Agent may petition the Court for the appointment of a successor Custodian/Escrow Agent, or other appropriate relief. Any such resulting appointment shall be binding upon all of the parties to this Custodian/Escrow Agreement.
12. Notices. Notice to the parties hereto shall be in writing and delivered by hand-delivery, facsimile, electronic mail or overnight courier service, addressed as follows:
If to Class Counsel: |
Xxxxxxx X. Xxxxxx Xxxxxxx & London, P.C. 00 Xxxxxx Xxxx, 0xx Xxxxx Xxx Xxxx, Xxx Xxxx 00000 xxxxxxx@xxxxxxxxxxxxxxxx.xxx
Xxxx X. Xxxxxx |
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|
Napoli Shkolnik 1302 Xxxxxxx Xxxxx xx Xxxx Xxx Xxxx, Xxxxxx Xxxx 00000 XXxxxxx@XXXXXxx.xxx
Xxxxx Xxxxx Xxxxx & Budd 3102 Xxx Xxxx Xxxxxx, Xxxxx 0000 Xxxxxx, Xxxxx 00000 xxxxxx@xxxxxxxxx.xxx
|
If to the Settling Defendants:
|
Office of the General Counsel 1007 Xxxxxx Xxxxxx Xxxxxxxxxx, XX 00000 Xxxx: Xxxxxxxx X. Xxxxxxx xxxxxxxx.x.xxxxxxx@xxxxxxxx.xxx
With a copy to:
Xxxxxxx X. Xxxxxxx Xxxxxx X. Xxxx Xxxxxxxx, Xxxxxx, Xxxxx & Xxxx 00 Xxxx 00xx Xxxxxx Xxx Xxxx, XX 00000 xxxxxxxxx@xxxx.xxx xxxxxx@wlrk.com DuPont de Nemours, Inc. 000 Xxxxxx Xx. Xxxxxxxxxx, XX 00000 Xxxx: Xxxx X. Xxxxxx xxxx.x.xxxxxx@xxxxxx.xxx Xxxx a copy to:
Xxxxx X. Xxx Xxxx Xxxxxxxx & Xxxxx LLP 300 North LaSalle Chicago, IL 00000 xxxxx.xxxxxxx@xxxxxxxx.xxx
Corteva Inc. 000 Xxxxxx Xxxx Xxxxxxxx 000 Xxxxxxxxxx, XX 00000 |
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EXHIBIT 10.1H
|
Attn: Xxxxxx X. Xxxxxx xxxxxx.x.xxxxxx@xxxxxxx.xxx
With a copy to: Xxxxxxx X. Xxxxxxxx Xxxxxxx, Xxxxxx & Xxxxx LLP 825 Xxxxxx Xxxxxx Xxx Xxxx, XX 00000 xxxxxxxxx@xxxxxxx.xxx
EIDP, Inc. 000 Xxxxxx Xxxx Xxxxxxxx 000 Xxxxxxxxxx, XX 00000 Xxxx: Xxxxxx X. Xxxxxxx xxxxxx.x.xxxxxxx@xxxxxxx.xxx
With a copy to: Xxxxxxx X. Xxxxxxxx Xxxxxxx, Xxxxxx & Xxxxx LLP 825 Xxxxxx Xxxxxx Xxx Xxxx, XX 00000 xxxxxxxxx@xxxxxxx.xxx |
If to the Special Master:
|
Xxxxxxx Xxxxxxxxx, Xxxx/Xxxxxxxxx LLC P.O. Box 2806 Park City, UT 8406 |
If to Custodian/Escrow Agent: |
THE HUNTINGTON NATIONAL BANK Robyn Griffin Senior Managing Director National Settlement Team The Huntington National Bank One Rockefeller Plaza 10th Fl New York, NY 10020 Office: (312) 646-7288 Mobile: (646) 265-3817 E-mail: xxxxx.xxxxxxx@xxxxxxxxxx.xxx
Xxxxx Xxxxxxxxxx, Trust Officer Huntington National Bank 7 Easton Oval – EA5W63 Columbus, Ohio 43219 Telephone: (614) 331-9804 E-mail: xxxxx.xxxxxxxxxx@xxxxxxxxxx.xxx |
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14. Patriot Act Warranties. Section 326 of the USA Patriot Act (Title III of Pub. L. 107-56), as amended, modified or supplemented from time to time (the “Patriot Act”), requires financial institutions to obtain, verify and record information that identifies each person or legal entity that opens an account (the "Identification Information"). The parties to this Custodian/Escrow Agreement agree that they will provide the Custodian/Escrow Agent with such Identification Information as the Custodian/Escrow Agent may request in order for the Custodian/Escrow Agent to satisfy the requirements of the Patriot Act.
15. Entire Agreement. This Custodian/Escrow Agreement, including all Schedules and Exhibits hereto, constitutes the entire agreement and understanding of the parties hereto. Any modification of this Custodian/Escrow Agreement or any additional obligations assumed by any party hereto shall be binding only if evidenced by a writing signed by each of the parties hereto. To the extent this Custodian/Escrow Agreement conflicts in any way with the Settlement Agreement, the provisions of the Settlement Agreement shall govern.
16. Governing Law. This Custodian/Escrow Agreement shall be governed by the law of the State of Delaware in all respects. The parties hereto submit to the jurisdiction of the Court, in connection with any proceedings commenced regarding this Custodian/Escrow Agreement, including, but not limited to, any interpleader proceeding or proceeding Custodian/Escrow Agent may commence pursuant to this Custodian/Escrow Agreement for the appointment of a successor Custodian/Escrow Agent, and all parties hereto submit to the jurisdiction of such Court for the determination of all issues in such proceedings, without regard to any principles of conflicts of laws, and irrevocably waive any objection to venue or inconvenient forum.
17. Termination of Custodian/Escrow Account. The Custodian/Escrow Account will terminate after all funds deposited in it, together with all interest earned thereon, are disbursed in accordance with the provisions of the Settlement Agreement and this Custodian/Escrow Agreement.
18. Miscellaneous Provisions.
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EXHIBIT 10.1H
[Signature Page Follows]
Exhibit H Page 11
EXHIBIT 10.1H
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
THE HUNTINGTON NATIONAL BANK, as Custodian/Escrow Agent
By: __________________________________
Xxxxx Xxxxxxx, Senior Managing Director
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EXHIBIT 10.1H
CLASS COUNSEL
By: __________________________________
Xxxxxxx X. Xxxxxx
Xxxxxxx & London, P.C.
00 Xxxxxx Xxxx, 0xx Xxxxx
New York, NY 10038
By: __________________________________
Xxxxx Xxxxx
Xxxxx & Xxxx, P.C.
0000 Xxx Xxxx Xxxxxx
Suite 1100
Dallas Texas, 75219
By: __________________________________
Xxxx X. Xxxxxx
Napoli Xxxxxxxx
0000 Xxxxxxx Xxxxx xx Xxxx
San Xxxx, Puerto Rico 00907
THE SPECIAL MASTER
By: __________________________________
Name: Xxxxxxx Xxxxxxxxx
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EXHIBIT 10.1H
SETTLING DEFENDANTS
The Chemours Company
By: __________________________________
Name:
Title:
The Chemours Company FC, LLC
By: __________________________________
Name:
Title:
DuPont de Nemours, Inc.
By: __________________________________
Name:
Title:
Corteva, Inc.
By: __________________________________
Name:
Title:
X.X. XxXxxx de Nemours and Company n/k/a EIDP, Inc.
By: __________________________________
Name:
Title:
Exhibit H Page 14
EXHIBIT 10.1H
Exhibit A-1
AUTHORIZED REPRESENTATIVES
Each of the Authorized Representatives is, with respect to Class Counsel, authorized to issue instructions, confirm funds transfer instructions by callback, and effect changes in Authorized Representatives of Class Counsel, all in accordance with the terms of the Escrow Agreement.
Class Counsel
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
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EXHIBIT 10.1H
Exhibit A-2
AUTHORIZED REPRESENTATIVES
Each of the Authorized Representatives is, with respect to The Chemours Company and The Chemours Company FC, LLC (each a Settling Defendant), authorized to issue instructions, confirm funds transfer instructions by callback, and effect changes in Authorized Representatives of The Chemours Company and The Chemours Company FC, LLC, all in accordance with the terms of the Escrow Agreement.
The Chemours Company and The Chemours Company FC, LLC
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
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EXHIBIT 10.1H
Exhibit A-4
AUTHORIZED REPRESENTATIVES
Each of the Authorized Representatives is, with respect to DuPont de Nemours, Inc. (a Settling Defendant), authorized to issue instructions, confirm funds transfer instructions by callback, and effect changes in Authorized Representatives of DuPont de Nemours, Inc., all in accordance with the terms of the Escrow Agreement.
DuPont de Nemours, Inc.
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
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EXHIBIT 10.1H
Exhibit A-4
AUTHORIZED REPRESENTATIVES
Each of the Authorized Representatives is, with respect to DuPont de Nemours, Inc. and X.X. XxXxxx de Nemours and Company n/k/a EIDP, Inc. (each, a Settling Defendant), authorized to issue instructions, confirm funds transfer instructions by callback, and effect changes in Authorized Representatives of DuPont de Nemours, Inc. and X.X. XxXxxx de Nemours and Company n/k/a EIDP, Inc., all in accordance with the terms of the Escrow Agreement.
Corteva, Inc. and X.X. XxXxxx de Nemours and Company n/k/a EIDP, Inc.
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
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EXHIBIT 10.1H
Exhibit A-5
AUTHORIZED REPRESENTATIVES
Each of the Authorized Representatives is, with respect to Xxxxxxx Xxxxxxxxx (a Settling Defendant), authorized to issue instructions, confirm funds transfer instructions by callback, and effect changes in Authorized Representatives of Xxxxxxx Xxxxxxxxx, all in accordance with the terms of the Escrow Agreement.
Xxxxxxx Xxxxxxxxx
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
By: ___________________________________
Name: ___________________________________
Law Firm: ___________________________________
Email: ___________________________________
Phone: ___________________________________
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EXHIBIT 10.1H
Exhibit B
Settlement Agreement
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EXHIBIT 10.1H
Exhibit C
Fees of Custodian/Escrow Agent
Acceptance Fee: Waived
The Acceptance Fee includes the review of the Custodian/Escrow Agreement, acceptance of the role as Custodian/Escrow Agent, establishment of Custodian/Escrow Account(s), and receipt of funds.
Annual Administration Fee: Waived
The Annual Administration Fee includes the performance of administrative duties associated with the Custodian/Escrow Account including daily account management, generation of account statements to appropriate parties, and disbursement of funds in accordance with the Custodian/Escrow Agreement. Administration Fees are payable annually in advance without proration for partial years.
Out of Pocket Expenses: Waived
Out of pocket expenses include postage, courier, overnight mail, wire transfer, and travel fees.
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