WILLIAM J. ALBACI-I AND RICHARD J.

DODSON VERSUS JOHN KENNEDY, in his capacity as State Treasurer of Louisiana and Administrator of Unclaimed Property Pursuant to R.S. 9:152 and the Uniform Disposition of Unclaimed Property

SUIT NO. 450,102 DIVISION A"

19TH JUDICIAL DISTRICT COURT

PARISH OF EAST BATON ROUGE

STATE OF LOUISIANA

III I au Wi I (S)tI)

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PIi I ut

I DKI I

PRELIMINARY STATEMENT
A. This action was brought by plaintiffs William J. Albach, Richard J. Dodson, and the class of similarly situated individuals, as more fully described in this Honorable Court's judgment of January 28, 1999, as a class action under La. C.C.P. Articles 59 IA and 59113(l)(b). The class currently is defined as all persons who were owners of property that was surrendered to the State prior to July 10, 1986 if the property was interest bearing to the owner on the date of surrender by the holder to the administrator of unclaimed property. In addition, the class currently also includes all persons who are owners of property that was surrendered to the administrator of unclaimed property at the date of the class action certification when that property was interest bearing to the holder on the date of surrender to the State and the State failed to pay or accrue interest thereon pursuant to LSA-R.S. 9:163 and the previous versions of that statute. B. Plaintiffs1 petition charged in substance that defendant, in his capacity as Administrator of Unclaimed Property, as that office is described in the Uniform Unclaimed Property Act of 1997, LSA-R. S. 9:151, et seq. (the "Act"), had failed, as to certain owners of unclaimed property that is currently being held by the State or that has already been transferred from the State to the owners thereof, to properly pay or accrue statutory interest pursuant to LSA-R. S. 9:163, and that as a result plaintiffs and other members of the class were damaged. C. Plaintiffs requested that, if the defendant has failed to properly pay interest on items that have been transferred from the State to the class member owners thereof (because the property was interest bearing to the owner on the date of surrender by the holder to the State), they be paid any and all interest due on those items. Plaintiffs also prayed for reimbursement of their costs and expenses and for the allowance of reasonable counsel fees to their attorneys for prosecuting this action. The named defendant has appeared and answered and has denied the material D. allegations of plaintiffst petition. The defendant has asserted that it has historically paid interest on interest bearing savings accounts, matured certificates of deposit, and Christmas club accounts. Further, the defendant contends not all unclaimed property accounts are interest bearing and that the burden of proof of demonstrating that an account is interest bearing is on the party claiming the account, not the defendant. This Court, by judgment dated January 28, 1999, determined that this action is E. properly maintained as a class action under the provisions of La. C.C.P Articles 59 1(A) and (13)(1)(b) and that adjudication with respect to the claims of plaintiffs, as members of this
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class, would as a practical matter be dispositive of the interests of the other members of the class not currently parties to this litigation, and that plaintiffs are proper representatives of the class. Additionally, this Court rendered ajudgrnent which was signed on November 29, 1999 granting the class a partial summary judgment on issues of liability. The relief granted, in pertinent part, was as follows: IT IS HEREBY ORDERED, ADJUDGED AND DECREED, that there be judgment herein in favor of William J. Albach, Richard J. Dodson and the class of similarly situated individuals previously certified herein by Judgment dated January 28, 1999, and against Brett Crawford, in his capacity as secretary of the Louisiana Department of Revenue and Administrator of Unclaimed Property, or his successors in office, that all owners of property which was surrendered to the administrator of unclaimed property prior to July 10, 1986 whose property was interest bearing to the owner on the date of surrender by the holder to the administrator of unclaimed property are entitled to be paid interest on this property in accordance with the Provisions of La. R.S. 9:163 from the date the property was deposited with the Administrator of Unclaimed Property through the date that said property was transferred to the owner, subject to the maximum period of ten (10) years from the date of deposit. IT IS FURTHER ORDERED, ADJUDGED AND DECREED that there be judgment herein in favor of William J. Albach, Richard J. Dodson and the class of similarly situated individuals previously certified herein by Judgment dated January 28, 1999, and against Brett Crawford, in his capacity as Secretary of the Louisiana Department of Revenue and Administrator of Unclaimed Properly, or his successors in office, decreeing that a!l owners of property which was interest bearing to the owner on the date of surrender by the holder to the administrator of unclaimed property which was surrendered to the administrator of unclaimedproperty on or after July 10, 1986 who have not heretofore been paid interest on their property pursuant to La. R.S. 9:163 are entitled to be paid said interest for the period of time from the date of surrender of the property by the holder to the administrator of unclaimed property through the day the property was delivered to the owner or through the day the property shall be delivered to the owner, subject to the maximum period of ten (10) years from the date of delivered of the property to the administrator, F. To bring the controversy between plaintiffs (and the class represented by plaintiffs) and defendant to rest, to secure total and final settlement of all claims against defendant arising out of the purported acts and omissions set forth in plaintiffst petition, and to avoid further expense, inconvenience, and the distraction and hazard of burdensome and protracted litigation, the parties desire to settle and terminate this action and all claims asserted in it, as well as any other claim against defendant which is based on or might be based on or arise from any of the matters alleged in plaintiffs petition, regardless of the legal theory on which the claim may be based. TERMS OF SETTLEMENT A. Total Benefit: The parties agree, for purposes of this settlement only, that the total benefit available to the settlement class, including past and future interest, is $15,000,000.00.

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B. C l aims Procedure.: Upon completion of all terms and conditions outlined in this Stipulation, including but not limited to the suspensive conditions outlined in Section 10 of the Procedural Stipulation below, and upon approval by the court after the satisfaction of the suspensive conditions, the defendant shall establish a process, procedure, and forms that members of the settlement class may use to submit claims for interest that the claimant believes may be owed to the claimant. (i) Forms: The defendant will create forms to be used by those members of the settlement class who have already recouped unclaimed property which they believe should have been interest bearing to them but were not paid interest by the defendant when the unclaimed property was returned to the owner. The defendant also will create forms to be used by those members of the settlement class who have not yet recouped unclaimed property but who will do so in the future, on which property the claimant asserts that interest is due. (ii) Notice: The defendant shall provide notice of this process, procedure, and forms on its website and in publications of the six major newspapers in metropolitan areas within the State of Louisiana. The content and the frequency and duration of the publication of the process, procedure, and forms shall be done at the discretion of the defendant provided that the publication shall run in each of the six major newspapers at least once every four months over a one year period commencing with final court approval of this settlement. All parties agree that the cost of the advertising and administration of the process and procedures will not exceed $200,000. C. Settlement Class: For the purposes of this settlement, the settlement class shall be defined as all existing class members plus: All owners of property that was surrendered to the administrator of unclaimed property prior to December 31, 2011, whose property was interest bearing to the owner, by virtue of a Louisiana statute or a contract, on the date of surrender by the holder to the administrator of unclaimed property. D. lEvidentiary Rulings: For the purposes of this settlement, any and all evidentiary rulings by the district court, including the 2011 ruling on spoliation of evidence will be treated as void. The court, as part of the settlement approval process, shall sign an order in a form satisfactory to counsel for both plaintiffs and defendant withdrawing and nullifying any and all such orders, judgments and rulings. The defendants, upon the signing of such order, shall dismiss (without prejudice and at its cost) its writ application to the Louisiana First Circuit Court of Appeal, Case Number 2011 CW 1618. E. Interest:

(i) The defendant shall pay interest to settlement class members who are (1) able to show to the Administrator's reasonable satisfaction that they are owners of unclaimed property that has been recouped from the State and (2) able to show to the Administrator's reasonable satisfaction that they should have been paid interest in accordance with LSAR.S. 9:163. (ii) Upon submitting satisfactory proof of ownership and the interestbearing nature of the prQperty, the recouping owner must submit evidence of the particular interest rate. If the unclaimed property does not bear interest under the terms of specific statute granting such unclaimed property a specific interest rate, then the
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owner of the unclaimed property shall submit reasonable proof to the Administrator of the interest rate paid or payable by the holder of the property at the time the unclaimed property was turned over to the defendant. In the event that the recouping owner fails to submit satisfactory proof to the Administrator of such interest rate, the interest rate to be applied will be that rate outlined in the LSAR,S. 9:163 as of the date of transfer to the custody of the State. PROCEDURAL STIPULATION NOW, TI-IEREFORE, for the reasons set forth above, It is stipulated by the parties, through their respective counsel, that, (a) subject first to the completion and satisfaction of all the terms and conditions set forth in the Suspensive Conditions contained in Section 10, below, and (b) subject second to the approval of the court and notice and an opportunity to be heard to be accorded to all class members, including the settlement class, all pursuant to La. C.CP. Articles 594 and 595: 1. After completion of all terms and conditions outlined in this Stipulation, including but not limited to the Suspensive Conditions outlined in Section 10, an order and final judgment shall be entered by the court in accordance with the provisions of this Stipulation. 1 settleinent. Each party will comply fully and promptly with all terms and provisions of the

3. All claims asserted in this action, and any and all other claims against the defendant, which are based on or could be based on or could arise from any of the matters alleged in plaintiffs petition, regardless of the legal theory on which they are based, shall be dismissed by the court with prejudice. 4. After completion of all terms outlined in this Stipulation, including but not limited to the Suspensive Conditions outlined in Section 10, to accomplish dismissal, this stipulation for settlement will be submitted by the parties jointly to the court, with the request that it be approved pursuant to La. C.C.P. Articles 594 and 595. The parties will then jointly move the court to schedule a fairness hearing, and to approve the method of notice to the class of this proposed settlement and the schedule of the fairness hearing. Notice shall be given in such manner as the court directs, at the expense of plaintiffs, subject to said expenses being taxable as costs of this litigation. 5. Plaintiffs and defendant, and their counsel, will use their best efforts to secure the court's approval of the settlement as set forth in this Stipulation. 6. Upon completion of all procedural terms and suspensive conditions, the settlement shall be consummated pursuant to the terms of this Stipulation on approval of the court as provided above. 7. On approval of the settlement by the court, following notice and a hearing, an order and final judgment shall be entered approving the settlement, adjudging the terms of it to be adequate, proper, fair, and reasonable, and directing consummation of the settlement in accordance with its terms and provisions. 8. At the time of the fairness hearing envisioned herein, counsel for plaintiffs will apply to the court for allowances of attorney fees and expenses relating to this litigation. Counsel for plaintiffs agree that irrespective of the attorney fees set by the court, attorney fees shall be no more or less than Two Million Five 1-lundred Thousand ($2,500,000.00)

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Dollars, and the expenses of litigation, to be approved by the Court and taxed as costs, shall not exceed Four Hundred Fifty Thousand ($450,000.00) Dollars. Defendant specifically reserves the right to review and audit all costs submitted to the court for reimbursement 9. This Stipulation is not, and shall not be construed to be, either an admission by defendant of the validity of any of the claims asserted in this action, or of liability, or of any wrongdoing, nor shall the stipulation be construed as an admission by plaintiffs of any Jack of merit in their allegations. 10. Suspensive Conditions:

10.1. This settlement, as provided in this Stipulation, is not effective, and no judgment may be entered pursuant to this Stipulation, and no notices or other procedures or actions by the parties contemplated in this Stipulation may be taken, until this settlement is specifically approved by the Louisiana Attorney General and the Louisiana Joint Legislative Committee on the Budget and all fees and costs are included within the appropriations bill that is passed by the 2012 General Legislative Session and signed by the Governor in a manner that authorizes an appropriation for all fees and costs incurred in this settlement. If the foregoing approvals are not obtained by August 1, 2013, this Stipulation shall be deemed null and void, and all actions taken or agreements made, whether verbal or written, pursuant to the terms of this Stipulation shall be considered of no force or effect; and all parties to this action and to this Stipulation shall stand in the same position without prejudice as if the Stipulation had not been made. 10.2 This settlement is also contingent upon and shall not be effective unless both of the following conditions have been met: a, Dismissal of Hooks Lawsuit. Prior to the Court's final approval of the Settlement, the Hooks Lawsuit shall be dismissed, with prejudice, by the plaintiffs, at their cost. The "Hooks Lawsuit" shall mean the lawsuit entitled Tommy J Hooks, Jr., Paul F. Garwood, and Noreen Wogan v. John Kennedy, in his capacity as Treasure of Louisiana and Administrator of Unclaimed Property pursuant to R.S. 9:152 and the Uniform Distribution of Unclaimed Property, et al., pending in the 19th Judicial District Court, bearing docket number 496,445 in the former division "F.". b. No Other Suits. If any other lawsuit is filed in any Louisiana state court or in any federal court alleging or asserting any claims similar to or related to any causes of action asserted in this suit (Albach, et al. v. Kennedy, et aL) or in the Hooks Lawsuit, including but not limited to claims or causes of action concerning the Louisiana Uniform Unclaimed Property Act of 1997, LSA-R.S. 9:151, et seq. and interest paid or allegedly payable to owners of unclaimed property that is currently being held by the State or that has already been transferred from the State to the owners thereof, statutory interest pursuant to LSA-R.S. 9:163, or any constitutional claims (state or federal) concerning interest paid or payable to owners of unclaimed property, it shall be dismissed, with prejudice, prior to the Court's final approval of the Settlement, at no cost to the Defendant in this suit Albach) or to the State, including but not limited to attorneys' fees.

[The rest of this case is inlentionally blank]

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This document may be executed in multiple originals. Dated:
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FOR PLAINTIFFS:

FOR DEFENDANT:

C

1 RICHARD J. DODSOZS
i DODSON HOOKS &DER1CK (APLC) 112 FOUNDERS DRIVE BATON ROUGE, LA 70810 TELEPI-IONE: (225) 76-02 FA1CSJMIJE (225) j75(/-002 EflETH HQKS, EQ -' ODSON HOOKS & FIEDERICK (APLC) 112 FOUNDERS DRIVE I3ATON ROUGE, LA 70810 TELEPHONE: (225) 756-0222 FACSIMILE (225) 756-0025

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CHAEL H. RUBIN, E1 MCGLINCIIEY STAFFORD, PLLC 14T11 FLOOR, ONE AMERICAN PLACE 301 MAIN STREET BfON ROUGE, LOUISIANA 70825 TELEPHONE: (225) 383-9000 FACSIMILE: (225) 343-3076

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W. STEVEN EAR, ESQ. POYNTER,] AR & COMPANY, PLC 6002 PERKINS ROAD, SUITE C-I BATON ROUGE, LA 70808 TELEPHONE: (225) 769-7616

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