STATE OF INDIANA ) IN THE MARION SUPERIOR COURT ) SS: CIVIL DIVISION, ROOM 12 COUNTY OF MARION ) CAUSE NO. 49D PL

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1 STATE OF INDIANA IN THE MARION SUPERIOR COURT SS: CIVIL DIVISION, ROOM 12 COUNTY OF MARION CAUSE NO. 49D PL TAMMY RAAB, on behalf of herself and all others similarly situated, vs. Plaintiff, R. SCOTT WADDELL, in his official capacity as Commissioner of The Indiana Bureau of Motor Vehicles, and the INDIANA BUREAU OF MOTOR VEHICLES, Defendants. CLASS ACTION SETTLEMENT AGREEMENT WITH R. SCOTT WADDELL AND INDIANA BUREAU OF MOTOR VEHICLES This Settlement Agreement ( Agreement is made and entered into by and among R. Scott Waddell in his official capacity as Commissioner of the Indiana Bureau of Motor Vehicles ( Waddell and the Indiana Bureau of Motor Vehicles ( BMV (collectively the Defendants and plaintiff class representative Tammy Raab ( Plaintiff or Class Representative, both individually and on behalf of a proposed Settlement Class of all persons who paid a fee to the BMV from and including March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle operator s license while less than 75 years of age. In consideration of the covenants, agreements and releases set forth herein and for other good and valuable consideration, it is agreed by and among the undersigned that the Action be settled, compromised and dismissed on the merits, subject to the approval of the Court, on the following terms and conditions. A. Definitions The following terms, as used in this Agreement, have the following meanings:

2 1. Action means the above-captioned case, Raab v. Waddell and Indiana Bureau of Motor Vehicles, Marion County Superior Court, Civil Division, Room No. 12, Cause No. 49D PL Approval Date means the day on which the Court has entered a final order approving this Agreement under Ind. T.R. 23(E, and dismissing the Action against the Defendants on the merits as to all Class Members upon the Release Date. 3. BMV Transaction means any financial transaction between a Class Member and the BMV. 4. Settlement Class mean all persons who paid a fee to the Indiana Bureau of Motor Vehicles from March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle Operator s License while less than 75 years of age, excluding the Judge assigned to the Action and the Judge s spouse, Elizabeth Murphy, R. Scott Waddell and all attorneys for Defendants who have appeared in the Action. 5. Class Counsel means the law firm of Cohen & Malad, LLP, One Indiana Square, Suite 1400, Indianapolis, Indiana. 6. Class Member means each member of the Settlement Class who does not timely elect to be excluded from the Settlement Class. 7. Class Period means the period from and including March 7, 2007 to and including June 27, Complaint means the Plaintiff s Class Action Complaint filed March 7, Court means the Marion County, Indiana, Superior Court, Civil Division, Room No

3 10. License Transaction means any transaction during the Class Period by which a Class Member paid a fee to the BMV for the issuance or renewal of an Operator s License while less than 75 years of age. 11. Operator s License means the non-probationary motor vehicle operator s license issued to persons under the age of seventy-five referenced Article 24, of Title 9 of the Indiana Code. 12. Settlement Amount means the sum of $30,000,000. B. Distribution of the Settlement Amount 13. The Settlement Amount shall be paid by the BMV according to the terms of this Agreement. The entire Settlement Amount will be exclusively applied to pay distributions to Class Members, the costs of the notice set forth in Paragraphs 28 through 30, the payment of a Class Representative fee, attorneys fees, and the cy pres distribution provided by Paragraph 18. No funds shall revert to the BMV. 14. Each Class Member will receive, either by check or by credit, a Base Refund in the actual amount of his or her base overcharges established by the Action. Each Class Member will also receive, either by check or by credit, an Additional Refund in the amount of a pro rata share of all funds remaining after the payment of all Base Refunds, attorneys fees, costs of notice and the Class Representative fee, according to the relative amount of his or her individual Base Refunds. 15. The Base Refund and Additional Refund for each License Transaction of a Class Member will be calculated as follows: (i The Base Refund for each License Transaction of the Class Member shall be in the amount set forth on the attached Exhibit A that corresponds to 3

4 the time period and license type (4-Year, 5-Year or 6-Year of the License Transaction. (ii The Additional Refund for each License Transaction of the Class Member shall be calculated in two steps. First, the sum of all Base Refunds, the costs of notice, the Court-awarded attorneys fees and the Court-awarded Class Representative fee shall be deducted from the Settlement Amount to determine the Net Settlement Amount. Second, the Net Settlement Amount shall be multiplied by the number equal to the Base Refund for the License Transaction of each individual Class Member divided by the sum of all Base Refunds. The formula for calculating the Additional Refund for each License Transaction is therefore as follows: Transaction Base Refund Sum of all Base Refunds X Net Settlement Amount = Additional Refund 16. For purposes of distributing payments to Class Members, the Initial Payment Period means the period of three years commencing on a date certain no later than 45 days after the Approval Date. 17. The Base Refunds and Additional Refunds shall be distributed to the Settlement Class through Advance Payments made prior to the Initial Payment Period, and Final Payments made during and after the Initial Payment Period, as follows: (i An Advance Payment means the amount of any overcharge credit automatically applied to the BMV Transaction of a Class Member on or after July 12, The Advance Payments being made by the BMV to those Class Members who participate in a BMV Transaction on or after July 12, 2013 will continue until the date the Initial Payment Period begins. 4

5 (ii A Final Payment amount shall be calculated for each Class Member that shall equal the sum of all Base Refunds and Additional Refunds for License Transactions of the Class Member, minus any Advance Payment made to the Class Member. (iii A Class Member may obtain his or her Final Payment in the form of a check mailed by the BMV by completing a request form on a web page hosted on the BMV s website. The form will require only that the Class Member provide their: (i current complete name (ii complete name at the time the Operator s License was issued, (iii current address, and (iv Operator s License number or Social Security Number. A link to the web page containing the request form will be prominently available on the BMV s home page. The link shall be in a similar size and style format as the button for Renew Driver s License currently along the right side of the BMV home page. A check for the Final Payment shall be mailed to the Class Member within 45 days from full and accurate completion of the request form. The option of receiving the Final Payment in the form of a check mailed by the BMV will be available to Class Members at any time during the Initial Payment Period unless the Class Member previously received the Final Payment amount in the form of a credit during the Initial Payment Period. (iv A Class Member who does not opt to receive, or has not already received, his or her Final Payment in the form of a check mailed by the BMV will automatically receive the Final Payment in the form of a credit the next time the Class Member participates in a BMV Transaction. The option of receiving the Final Payment in 5

6 the form of a credit applied to a BMV Transaction will be available to Class Members at any time during the Initial Payment Period. (v Each Class Member who has not received his or her Final Payment during the Initial Payment Period in the form of a check mailed by the BMV or a credit applied to a BMV Transaction shall be issued a check by the BMV in the amount of his or her Final Payment. The Final Payment shall be mailed to the Class Member s last known address not more than ninety days after the conclusion of the Initial Payment Period. 18. Any portion of the Settlement Amount that has not been distributed as of 180 days after the last payment is mailed pursuant to Paragraph 17(v, including any amounts remaining as a result of returned or uncashed checks, shall be paid into the Court within 210 days after the last payment is mailed pursuant to Paragraph 17(v. The Court shall disburse such amount as a cy pres award or awards. 19. After seeking competitive bids, Class Counsel has retained the services of Kurtzman Carson Consultants ( KCC, an experienced and cost effective class action notice vendor, to issue notice of this Agreement to Class Members as provided herein, and shall have the authority to direct and supervise KCC as reasonably necessary to effectuate the forms of notice set forth in Paragraphs 28 through 30. The costs of notice shall be promptly paid by the BMV out of the Settlement Amount to the notice vendor, newspapers and any other person or entity providing services to effectuate the notice. The BMV shall be directly responsible for all other costs of the administration of this Agreement, which shall be in addition to and not paid out of the Settlement Amount. 6

7 20. Subject to Court approval, the BMV shall not object to, and shall pay out of the Settlement Amount within 30 days of the Approval Date, an amount ordered by the Court up to $6,300,000 to Class Counsel as attorneys fees, and an amount ordered by the Court up to $2,500 to the Plaintiff as a Class Representative fee. Class Counsel and the Class Representative shall not seek any fees in excess of fees set forth in this Paragraph. C. Compliance, Verification and Confirmatory Discovery 21. The BMV may continue to charge the $2.00 Crossroads 2000 and $0.50 Vehicle Technology fees going forward, provided it initiates the statutory procedure to promulgate administrative rules specifically authorizing such fees within 30 days after the Approval Date and completes such process within 12 months from initiation. Failure to commence or complete the statutory procedure as set forth above shall return the parties to the position they were prior to this Settlement Agreement with regard to the Crossroads 2000 and Vehicle Technology fees and no release as to those fees, or the Class claim for interest, shall be effective. In addition to the requirements of this Paragraph concerning the $2.00 Crossroads 2000 and $0.50 Vehicle Technology fees, the BMV agrees not to increase the Operator s License fees in effect as of June 28, 2013, under any circumstances, unless modified by a subsequently enacted statute or subsequently promulgated administrative rule. This provision shall not be construed as an admission by the Class that, absent this Settlement, the Operator s License fees in effect as of June 28, 2013 are the appropriate charges under the law. 22. Class Counsel shall have the right to verify compliance with the terms of this Agreement by reasonable means. The BMV shall have the right to object to Class Counsel s request for verification if the BMV believes Class Counsel s request is not relevant, redundant, unduly burdensome or unnecessary. If the parties cannot resolve a dispute over requested 7

8 information, the parties shall seek relief from the Court, which retains jurisdiction to resolve any dispute. 23. The BMV will make monthly compliance reports to the Court by no later than the 7th day of the month, with copies served upon Class Counsel, until the final payment out of the Settlement Amount is made to the Court for a cy pres distribution. The monthly reports shall include the last monthly amounts and the total cumulative amounts of: (i the number of Class Members issued Advance Payments; (ii the total amount of Advance Payments; (iii the number of Class Members issued Final Payments in the form of checks mailed by the BMV pursuant to Class Members request on a webpage maintained on the BMV s website; (iv the number of Final Payments issued to Class Members in the form of credits applied to a BMV Transaction; (v the total amount of all Final Payments; (vi after the Initial Payment Period, the number and total amount of Final Payments issued to Class Members in the form of mailed checks; (vii the balance remaining to be distributed out of the Settlement Amount, without interest; and (viii the number of Class Members who have not been issued a Final Payment. 24. Class Counsel may conduct one Ind. T.R. 30(B(6 deposition as confirmatory discovery as to the data previously provided for purposes of mediation. The Rule 30(B(6 deposition will seek testimony solely on the following topics: (i The number of affected License Transactions during the Class Period ( Number ; (ii the method of identifying Class Members for purposes of the Settlement ( Method ; and (iii the overcharges during the Class Period for each type of Operator s License ( Overcharges. If, after this confirmatory discovery, Class Counsel contends that the Number, Method or Overcharges are incorrect, Class Counsel may petition the Court to adjudicate the correct Number, Method or Overcharges. The BMV retains all rights to respond or object if Class Counsel petitions the Court to adjudicate the correct 8

9 Number, Method or Overcharges. After both parties have been heard on a petition to adjudicate the correct Number, Method or Overcharges, the Court shall determine the correct Number, Method and/or Overcharges and the Settlement Amount, Base Refunds and other distributions, and identification of Class Members will be adjusted accordingly subject to the parties rights of appeal. D. Stipulation to Certification of Settlement Class 25. The parties stipulate that, for purposes of this Agreement, the requirements of Ind. T.R. 23(A and 23(B(3 are satisfied and, subject to Court approval, the Settlement Class shall be certified for settlement purposes. 26. The parties further stipulate that the Plaintiff and her counsel will fairly and adequately serve the interests of the Settlement Class, and should be appointed, respectively, as the Settlement Class Representative and Class Counsel. E. Approval of this Agreement and Dismissal of Claims 27. The parties shall use their best efforts to effectuate this Agreement, including cooperating in promptly seeking the Court s certification of the Settlement Class under Ind. T.R. 23(A and 23(B(3, the Court s preliminary and final approval of the terms of the Agreement, and the Court s approval of procedures (including the giving of class notice under Ind. T.R. 23(D and (E to secure the prompt, complete, and final dismissal of the Action as to the Defendants. 28. As soon as practicable, Plaintiff shall submit to the Court a motion for certification of the Settlement Class and preliminary approval of this Agreement (the Motion. The Motion shall include: (i A copy of this Agreement executed by the parties hereto; 9

10 (ii A request that the Court certify, pursuant to Ind. T.R. 23(A and 23(B(3 and the terms of this Agreement, the Settlement Class defined herein; (iii A request that the Court enter an order preliminarily approving this Agreement as fair, reasonable and adequate to the Plaintiff and members of the Settlement Class ( Preliminary Approval Order ; (iv A request that the Court approve and direct, as the best notice practicable under the circumstances: (a ed notice to Class Members for whom an address is available from the records of the BMV, in the form attached hereto and marked Exhibit B ; (b Mailed postcard notice to Class Members for whom a mailing address is available but an address is either not available or results in an undeliverable , in the form attached hereto and marked as Exhibit C, (c Published notice to Class Members in the form attached hereto and marked as Exhibit D, (d A long form notice to Class Members to be available on a settlement website identified in the , postcard and publication notices, or by regular mail upon request, in the form attached hereto as Exhibit E ; and (e A prominent link on the BMV s website home page linking to the settlement notice website. The link shall be in a similar size and style format as the button for Renew Driver s License currently along the right side of the BMV home page; 10

11 (v A request that the Court approve and enter a proposed Preliminary Approval Order substantially in the form attached hereto and marked as Exhibit F ; and (vi A request that the Court schedule a hearing on final approval of this Agreement at the convenience of the Court. 29. Subject to the Court s approval, individual notice of the settlement in the form attached hereto and marked as Exhibits B and C shall be directed to persons who are identified by the Defendants as Class Members. Defendants have previously supplied to Class Counsel the names, addresses and regular mail addresses of potential Class Members within the Defendants possession, custody or control, and will provide any other data within Defendants possession, custody or control necessary to effectuate notice to the Settlement Class as proposed herein. 30. Subject to the Court s approval, notice in the form attached hereto and marked as Exhibit D shall be published once in the following newspapers: (i (ii (iii (iv (v (vi (vii Indianapolis Star; South Bend Tribune; Bloomington Herald; Gary Post Tribune; News and Tribune; Evansville Courier Press; Richmond Palladium-Item; (viii Fort Wayne Journal Gazette; and (ix USA Today. 11

12 31. Plaintiff and the Defendants shall jointly seek entry of a Final Approval Order, in the form attached hereto and marked as Exhibit G : (i (ii As to the Action, approving finally this Agreement and its terms as being a fair, reasonable, and adequate settlement as to the Class Members within the meaning of Ind. T. R. 23, and directing its consummation according to its terms; Directing that, as to the Defendants, the Action be dismissed; and (iii Reserving exclusive jurisdiction over this Agreement, including the administration and consummation of the terms of this Agreement. 32. Notwithstanding the foregoing, the Plaintiffs and the Defendants shall each be bound by the terms of this Agreement as of the last date on which this Agreement is signed by a party hereto, and this Agreement shall not be rescinded except in accordance with Paragraph 36. F. Release and Discharge 33. For purposes of the release and discharge of claims: Releasees means, jointly and severally and individually and collectively, the BMV, and the Bureau of Motor Vehicle s Commission, and any other state agency affiliated with the BMV in connection to the issuance or renewal of Operator s Licenses and R. Scott Waddell, in his capacity as Commissioner of the Indiana Bureau of Motor Vehicles, and their respective past and present officers, directors, employees, attorneys, servants, representatives, heirs, executors, administrators, guardians, successors and assigns; and Releasors means, jointly and severally and individually and collectively, the Class Members, the Class Representative and Class Counsel, and their respective past and present officers, directors, employees, attorneys, servants, representatives, heirs, executors, administrators, guardians, successors and assigns; and Release Date means the first day on which the Court has entered a final judgment approving this Agreement and either: (i the time to appeal from the Court s final judgment approving this Agreement has expired and no appeal has been taken, or (ii if a timely appeal is taken, the date on which the 12

13 final judgment is no longer subject to further direct appellate review if the final judgment has not been reversed in any way. 34. In consideration of payment of the Settlement Amount, and for other valuable consideration, upon the Release Date the Releasees, and each of them, shall be completely released, acquitted, and forever discharged from any and all claims, demands, actions, suits and causes of action at law or in equity, pursuant to statute or otherwise, whether class, individual or otherwise in nature, that Releasors, or any of them, ever had, now has, or hereafter can, shall, or may have on account of, arising out of, resulting from, or in any way related to the collection or setting of fees during the Class Period for the issuance or renewal of an Operator s License to persons then less than 75 years of age, including but not limited to any conduct alleged (whether intentional, reckless or negligent and whether individual or collective, and causes of action asserted, or that could have been alleged or asserted, in the Complaint filed in the Action (the Released Claims. The Releasors shall not, after the Release Date of this Agreement, seek to recover against any of the Releasees for any of the Released Claims other than as provided in this Agreement. The failure of any member of the Settlement Class to opt out by the opt-out date set by the Court or to obtain any payment from the Settlement Amount shall not affect the releases herein. 35. For good and valuable consideration, upon the Release Date the Releasors, and each of them, shall be completely released, acquitted, and forever discharged from any and all claims, demands, actions, suits and causes of action at law or in equity, pursuant to statute or otherwise, whether class, individual or otherwise in nature, that Releasees, or any of them, ever had, now has, or hereafter can, shall, or may have on account of, arising out of, resulting from, or in any way related to the filing, prosecution and settlement of the Action, and they are each and 13

14 all permanently enjoined and barred from instituting, asserting or prosecuting any and all such claims which the Releasees or their counsel or any of them, had, have or may in the future have against Releasors, arising out of, relating to or in connection with the Action. G. Rescission if the Agreement is Not Finally Approved 36. If the Court refuses to approve this Agreement or any part hereof, or if such approval is modified or set aside on appeal, or if the Court does not enter a Final Approval Order substantially as provided for in Paragraph 31 or if the Court enters the Final Approval Order and appellate review is sought and, on such review, such Final Approval Order is not affirmed in its entirety, then the Settlement Class and Defendants shall each, in its or their sole discretion, and without incurring any liability to each other, have the option to rescind this Agreement in its entirety by doing so in writing within 10 days. 37. The parties expressly reserve all of their rights if the Agreement does not become effective or if it is rescinded pursuant to Paragraph 36. Nothing contained in this Agreement or any notice or other exhibit to this Agreement, shall be construed in any way as an admission or evidence of any illegal conduct, fault, liability or wrongdoing of any kind by the Defendants. Further, the parties agree that this Agreement, whether or not it is finally approved and whether or not rescinded pursuant to Paragraph 36, and any and all negotiations, documents, and discussions associated with or exchanged in connection with it, shall not be deemed or construed to be an admission or evidence of any violation of any statute or law, or of any liability or wrongdoing by Defendants, or of the truth of any of the claims or allegations contained in the Complaint or any other pleading filed by Plaintiff in the Action. 14

15 H. Miscellaneous 38. The Court shall retain jurisdiction over the implementation, enforcement, and performance of this Agreement, and shall have exclusive jurisdiction over any suit, action, proceeding, or dispute arising out of or relating to this Agreement or the applicability of this Agreement that cannot be resolved by negotiation and agreement by the parties. 39. This Agreement constitutes the entire agreement among the parties pertaining to the settlement of the Action and supersedes any and all prior and contemporaneous undertakings of the parties in connection therewith. This Agreement may be modified or amended only by a writing executed by Class Counsel and the Defendants pursuant to formal approval by the Attorney General and the Governor and approved by the Court. 40. This Agreement may be executed in counterparts by the parties, and a scanned or electronic signature shall be deemed an original signature for purposes of executing this Agreement. 41. Neither party shall be considered to be the drafter of this Agreement or any of its provisions for the purpose of any statute, case law, or rule of interpretation or construction that would or might cause any provision to be construed against the drafter of this Agreement. 42. Each of the undersigned attorneys represents that he or she is fully authorized to enter into the terms and conditions of, and to execute, this Agreement, subject to Court approval. 43. This Agreement shall be interpreted and construed in accordance with the laws of the State of Indiana, and any dispute or claims arising under or related to the terms or provisions of this Agreement, whether styled in contract, tort or otherwise, shall be governed by the internal laws of the State of Indiana without reference to choice of law or conflict of law principles. 15

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17 Class Action Settlement Agreement with R. Scott Waddell & Indiana Bureau of Motor Vehicles EXHIBIT A Base Refund Amounts

18 BASE REFUND AMOUNTS Time Period March 7, 2007 through May 13, Year Operator s Licenses N/A May 14, 2007 through January 2, 2008 $0.50 January 3, 2008 through October 6, 2008 $5.50 October 7, 2008 through January 1, 2009 $4.50 January 2, 2009 through March 24, 2012 $1.50 March 25, 2012 through June 27, 2013 $3.50 2

19 Time Period 5-Year Operator s Licenses March 7, 2007 through May 13, 2007 N/A May 14, 2007 through October 6, 2008 $4.50 October 7, 2008 through June 27, 2013 $3.50 Time Period 6-Year Operator s Licenses March 7, 2007 through May 13, 2007 $4.50 May 14, 2007 through October 6, 2008 $4.50 October 7, 2008 through June 27, 2013 $3.50 3

20 Class Action Settlement Agreement with R. Scott Waddell & Indiana Bureau of Motor Vehicles EXHIBIT B ed Notice

21 From: To: Subject: Notice NOTICE OF CLASS ACTION SETTLEMENT This is a Legal Notice authorized by the Marion County, Indiana, Superior Court (the Court about the settlement of a class action lawsuit against the Indiana Bureau of Motor Vehicles (the BMV that may affect your rights. This is not a lawsuit against you and you are not being sued. In the case of Tammy Raab v. R. Scott Waddell and The Indiana Bureau of Motor Vehicles (the Lawsuit, the Plaintiff alleged that since March 7, 2007, the BMV charged everyone under the age of 75 more than is allowed by law for motor vehicle Operator s Licenses. A settlement has been reached in the Lawsuit (the Settlement, which provides benefits for all persons who paid a fee to the Indiana Bureau of Motor Vehicles from March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle Operator s License while less than 75 years of age, excluding the Judge assigned to the Lawsuit and the Judge s spouse, Elizabeth Murphy, R. Scott Waddell and all attorneys for Defendants who have appeared in the Lawsuit. The purpose of this Notice is to advise you that you do not need to do anything at this time to receive the benefits of the Settlement, and that if you wish you also have the right to exclude yourself from the Settlement, and that you may object if you do not think the Settlement is fair. Your legal rights are affected whether you act or not, so please read this Notice carefully. YOUR LEGAL RIGHTS AND OPTIONS: DO NOTHING & RECEIVE BENEFITS If you choose to do nothing you will remain eligible to receive any payments from the Settlement that are approved by the Court. This will result in a release of any right you may have to pursue the legal claims brought, or which could have been brought in this case, against the BMV. DEADLINE N/A EXCLUDE YOURSELF You may exclude yourself from the Settlement, in which case you will not be eligible to receive any payments from the Settlement that are approved by the Court, or to comment on the Settlement. M/D/Y

22 OBJECT GO TO A HEARING You may write to the Court if you do not think the Settlement is fair. If you exclude yourself from the Settlement you may not object. If you object, you may also ask to speak in Court about the fairness of the Settlement. M/D/Y M/D/Y THIS NOTICE PROVIDES ONLY A SUMMARY OF INFORMATION ABOUT THE LAWSUIT AND THE SETTLEMENT. TO DOWNLOAD OR REQUEST THE MAILING OF A DETAILED NOTICE ABOUT THE SETTLEMENT, AND FOR MORE INFORMATION ABOUT THE LAWSUIT, GO TO OR CALL 1- XXX-XXX-XXXX. The Lawsuit has not gone to trial. Instead, the Plaintiff and Defendants agreed to settle to avoid the costs and risks of trial. The Settlement provides the opportunity for payments and other benefits to be made available to Class members, and for the Defendants to receive a release of any right Class members may have to pursue the same legal claims brought, or which could have been brought, in this case against the Defendants. How does the Settlement affect fees for driver s licenses? On June 28, 2013, as a result of the Lawsuit, the BMV lowered the fees for all operator s licenses issued to persons under the age of 75. The BMV agrees not to increase the Operator s License fees in effect as of June 28, 2013, under any circumstances, unless modified by a subsequently enacted statute or subsequently promulgated administrative rule. The BMV may continue to charge the $2.00 Crossroads 2000 and $0.50 Vehicle Technology fees going forward, provided it initiates the statutory procedure to promulgate administrative rules specifically authorizing such fees within 30 days after the final approval of the Settlement and completes the process within 12 months. If the BMV fails to do so, the parties will return to the position they were in prior to the Settlement with regard to those fees, and no release as to those fees shall be effective. What payments does the Settlement provide? The Defendants have agreed to pay the amount of $30,000,000 ( Settlement Amount. The entire Settlement Amount will be applied to pay distributions to Class members, the costs of the notifying Class members about the Settlement, a Class Representative fee, attorneys fees, and a cy pres distribution.

23 Each Class member will receive, either in cash or by credit, a Base Refund in the actual amount of his or her base overcharges established by the Lawsuit. Each Class member will also receive, either in cash or by credit, an Additional Refund in the amount of a pro rata share of all funds remaining after the payment of the Base Refunds, attorneys fees and costs of notice, which will be calculated according to the relative amount of his or her individual Base Refunds. How are payments going to be distributed? Part of the Refunds will be distributed to some Class members through Advance Payments. Advance Payments are overcharge credits that are automatically applied to the BMV transactions of Class members from July 12, 2013 until the Court s final approval of the Settlement. For a period of 3 years after the Court s final approval of the Settlement, any Refunds that have not been paid as Advance Payments can be obtained in two ways: (i in the form of a check mailed by the BMV by completing a request form on a web page hosted on the BMV s website, which can be reached at, or (ii in the form of a credit automatically applied the next time the Class member participates in a financial transaction with the BMV. After 3 years, any Class member who has not received his or her Refunds in the form of a check or a credit will be sent a check by the BMV in the amount of his or her Refunds, which will be mailed to the Class member s last known address not more than 90 days after the end of the 3- year period. How do I get out of the Settlement Class? You may request to be excluded from, or to opt-out of, the Settlement Class. If you choose to be excluded from the Class, you will not be bound by any of the terms of the Settlement or any judgment entered pursuant to the Settlement, nor will you be eligible to receive any payments from the Settlement. You will be free to pursue any claims that you may have against the Defendants on your own behalf at your own cost. To ask to be excluded, you must send an Exclusion Request in the form of a letter sent by mail, stating that you want to be excluded from the Settlement Class in Raab v. Waddell and BMV. You must include your name, address and phone number, and sign the letter. You must mail your Exclusion Request postmarked by to: BMV License Overcharge Case [Address new P.O. Box or Notice Vendor] How do I tell the Court if I do not think the Settlement is fair?

24 If you are a Settlement Class member and have not excluded yourself, you can object to the Settlement or any part of the Settlement. The Court will consider your views. Your objection must be in writing, and must be mailed, no later than, to each the following: Class Counsel: Irwin B. Levin Cohen & Malad, LLP One Indiana Square, Suite 1400 Indianapolis, IN Counsel for the Defendants: Don Hostetler Office of the Attorney General Indiana Government Center South, 5th Floor 302 West Washington Street Indianapolis, IN The Court: The Honorable Heather A. Welch, Judge, Marion County Civil Court No East Washington Street T-1760 Indianapolis, IN An objection must: (i contain the full name and current address of the person objecting; (ii contain the title of the Lawsuit: Raab v. Waddell and The Indiana Bureau of Motor Vehicles; (iii state the reasons for your objection; (iv be accompanied by any evidence, briefs, motions or other materials you intend to offer in support of your objection; (v be signed by you; and (vi be sent by U.S. mail, first class and postage prepaid, with a postmark on or before. You cannot object to the Settlement by phone or . Can I have a lawyer represent me? The law firm of Cohen & Malad, LLP has been appointed by the Court to represent you and other Settlement Class members. These lawyers are called Class Counsel. More information about Class Counsel is available at If you want to be represented by your own lawyer, you may hire one at your own expense. However, any lawyer intending to appear at the Fairness Hearing must be duly admitted to practice law before the Marion County, Indiana, Superior Court, and must file a written appearance no later than. Copies of the appearance must be served on Class Counsel and counsel for the Defendants at the addresses included in this Notice in accordance with the Indiana Rules of Trial Procedure. How will the lawyers and costs be paid? Class Counsel will file a petition with the Court no later than seven days before the Fairness Hearing asking for attorneys fees of 21% of the Settlement Amount, to be paid from the Settlement Amount. An award of attorneys fees in this amount will not reduce the amount of the Base Refund that is available to Class members. The Defendants do not oppose this requested

25 amount and any award of fees will be determined by the Court. The costs of providing notice to Class members will be paid from the Settlement Amount. All other costs of administration will be paid by Defendants and not out of the Settlement Amount. When and where will the Court decide whether to approve the Settlement? The Court will hold a hearing which is called the Fairness Hearing at the City-County Building, Room T-1760, Marion County Civil Court No. 12, 200 East Washington Street, Indianapolis, IN 46204, at o clock on. At the Fairness Hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will consider any objections, and listen to people who have made written objections and timely asked to speak at the hearing. After the Fairness Hearing, the Court will decide whether to approve the Settlement. You do not need to attend the Fairness Hearing to participate in the Settlement. May I show up and speak at the hearing? If you have submitted a timely written objection to the Settlement and requested to be heard, the Court may allow you to speak at the Fairness Hearing. If you wish for your lawyer to speak for you, he or she must have submitted a timely appearance as provided above. Reminder: If you have excluded yourself from the Settlement Class, you may not object to the Settlement and you may not speak at the Fairness Hearing Are more details available? Visit the website, where you can read the Detailed Notice and find more information about this case. You may also request additional information by calling 1-XXX-XXX-XXXX, or writing to: BMV License Overcharge Litigation [new P.O. Box or Notice Vendor] [Spanish language instructions to obtain more information]

26 Class Action Settlement Agreement with R. Scott Waddell & Indiana Bureau of Motor Vehicles EXHIBIT C Postcard Notice

27 Tammy Raab v. R. Scott Waddell and The Indiana Bureau of Motor Vehicles ( BMV NOTICE OF CLASS ACTION SETTLEMENT This is a Legal Notice authorized by the Marion County, Indiana, Superior Court. This is not a lawsuit against you and you are not being sued. If you paid a fee to the Indiana Bureau of Motor Vehicles to obtain or renew a motor vehicle Operator s License between March 7, 2007 and June 27, 2013, while less than 75 years of age, you may be entitled to comment on, exclude yourself, or receive payments from a Settlement. If you are a member of the Settlement Class, you will be entitled to benefits if the Court approves the Settlement. No action is required at this time to participate. You also have a right to exclude yourself from the Class, appear by your own attorney or object to the Settlement. There are deadlines to exercise these rights. Please go to or call 1-XXX-XXX-XXXX for a detailed explanation of your rights and the terms of the Settlement. [Spanish Language instruction]. Notice Administrator Street Address City, State, Zip Class Member Street Address City, State, Zip

28 Class Action Settlement Agreement with R. Scott Waddell & Indiana Bureau of Motor Vehicles EXHIBIT D Published Notice

29 WHAT IS THIS CASE ABOUT? In the case of Tammy Raab v. R. Scott Waddell and The Indiana Bureau of Motor Vehicles (the Lawsuit, filed in the Marion County, Indiana, Superior Court, the Plaintiff has alleged that since March 7, 2007, the Indiana Bureau of Motor Vehicles ( BMV has charged persons under the age of 75 more than is allowed by law for motor vehicle Operator s Licenses. A settlement has been reached in the Lawsuit, and on the Court preliminarily approved the settlement and certified the following Settlement Class in the Lawsuit: All persons who paid a fee to the Indiana Bureau of Motor Vehicles from March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle Operator s License while less than 75 years of age, excluding the Judge assigned to the Action and the Judge s spouse, Elizabeth Murphy, R. Scott Waddell and all attorneys for Defendants who have appeared in the Action. ARE YOU INCLUDED? You are included in the Settlement Class if you paid a fee to the Indiana Bureau of Motor Vehicles to obtain or renew a motor vehicle Operator s License between March 7, 2007 and June 27, 2013, while less than 75 years of age. WHO REPRESENTS YOU? The law firm of Cohen & Malad, LLP has been appointed by the Court to represent you and other Settlement Class Members. These lawyers are called Class Counsel. More information about Class Counsel is available at WHAT ARE THE BENEFITS? Under the Settlement, the BMV agrees to continue charging lower fees for operator s licenses that resulted from the Lawsuit unless modified by a later statute or administrative rule. The BMV will also pay $30 million, which will be applied to pay Class members, the costs of the notice to the Class, a Class Representative fee, attorneys fees, and a cy pres distribution. Each Class member will receive, either in cash or by credit, a Base Refund in the actual amount of his or her base overcharges established by the Lawsuit, and an Additional Refund in the amount of a pro rata share of all funds remaining after the LEGAL NOTICE If you paid a fee to the Indiana Bureau of Motor Vehicles to obtain or renew a motor vehicle Operator s License between March 7, 2007 and June 27, 2013, while less than 75 years of age, you may be entitled to comment on, exclude yourself, or receive payments from a Settlement. payment of the Base Refunds, attorneys fees and costs of notice. WHAT ARE YOUR OPTIONS? If you are a Class member and choose to do nothing you will remain eligible to receive payments from the Settlement if it is approved by the Court. This will release any right you may have to pursue the legal claims in this case against the Defendants. You may exclude yourself from the Settlement and keep any rights to sue the BMV separately for these claims, but you will not receive any payments from the Settlement, and may not comment on the Settlement. To ask to be excluded, send a signed letter to the address below, postmarked by, that says you want to be excluded from the certified class in BMV License Overcharge Case. Include your name, address, and telephone number. You may write to the Court if you do not think the Settlement is fair. If you exclude yourself from the Settlement you may not object. Instructions for objecting may be obtained at the web site or telephone number below. If you object, you may also ask to speak in Court about the fairness of the Settlement at the Fairness Hearing on. At that hearing, the Court will consider approval of the Settlement. You may appear by counsel of your choosing at your own expense. To remain in the Settlement and receive benefits, no action is required at this time. However, instructions and deadlines for exercising the rights above are available online and by phone as set forth below. THIS NOTICE PROVIDES ONLY A SUMMARY OF INFORMATION ABOUT THE LAWSUIT AND THE SETTLEMENT. TO DOWNLOAD OR REQUEST THE MAILING OF A DETAILED NOTICE ABOUT THE SETTLEMENT, AND FOR MORE INFORMATION ABOUT THE LAWSUIT, GO TO OR CALL 1-XXX-XXX-XXXX. [Spanish Language Instructions]

30 Class Action Settlement Agreement with R. Scott Waddell & Indiana Bureau of Motor Vehicles EXHIBIT E Long Form Notice

31 Tammy Raab v. R. Scott Waddell and The Indiana Bureau of Motor Vehicles The Marion County, Indiana Superior Court, Room No. 12 Cause No. 49D PL NOTICE OF CLASS ACTION SETTLEMENT If you paid a fee to the Indiana Bureau of Motor Vehicles to obtain or renew a motor vehicle Operator s License between March 7, 2007 and June 27, 2013, while less than 75 years of age, you may be entitled to comment on, exclude yourself, or receive payments from a settlement. This is not a solicitation from a lawyer. This is not a lawsuit against you and you are not being sued. In the case of Tammy Raab v. R. Scott Waddell and The Indiana Bureau of Motor Vehicles (the Lawsuit, filed in the Marion County, Indiana, Superior Court (the Court, the Plaintiff has alleged that since March 7, 2007, the Indiana Bureau of Motor Vehicles (the BMV has charged persons under the age of 75 more than is allowed by law for motor vehicle Operator s Licenses. A settlement has been reached in the Lawsuit (the Settlement, and on the Court preliminarily approved the settlement and certified the following Settlement Class: All persons who paid a fee to the Indiana Bureau of Motor Vehicles from March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle Operator s License while less than 75 years of age, excluding the Judge assigned to the Action and the Judge s spouse, Elizabeth Murphy, R. Scott Waddell and all attorneys for Defendants who have appeared in the Action. The purpose of this Notice is to advise members of the Settlement Class of the proposed Settlement, and how to assert any rights you may have under the Settlement. It is also intended to advise you of a hearing to consider the proposed settlement on. The Court must decide whether to approve the Settlement as fair, just and reasonable. If you are a member of the Settlement Class, your legal rights are affected whether you act or choose not to act. Please read this Notice carefully. YOUR LEGAL RIGHTS AND OPTIONS: DO NOTHING If you choose to do nothing you will remain eligible to receive any payments from the Settlement that are approved by the Court. This will result in a release of any right you may have to pursue the legal claims brought, or which could have been brought in this case, against the BMV. DEADLINE N/A EXCLUDE YOURSELF You may exclude yourself from the Settlement, in which case you will not be eligible to receive any payments from the Settlement that are approved by the Court, or to comment on the Settlement. M/D/Y QUESTIONS? VISIT or Call 1-XXX-XXX-XXXX 2

32 OBJECT GO TO A HEARING You may write to the Court if you do not think the Settlement is fair. If you exclude yourself from the Settlement you may not object. If you object, you may also ask to speak in Court about the fairness of the Settlement. M/D/Y M/D/Y These rights and options and the deadlines to exercise them are explained in this Notice. WHAT THIS NOTICE CONTAINS BASIC INFORMATION Why did I get this Notice? 2. What is the Lawsuit about? 3. What is a class action? 4. Why is there a Settlement? WHO IS IN THE SETTLEMENT? How do I know if I am part of the Settlement? THE SETTLEMENT TERMS How does the Settlement affect fees for driver s licenses? 7. What payments does the Settlement provide? 8. When will the Settlement be final? PARTICIPATING IN THE SETTLEMENT How do I participate in the Settlement? 10. Do I have to give anything up to participate? EXCLUDING YOURSELF FROM THE SETTLEMENT How do I get out of the Settlement Class? 12. If I do not exclude myself, can I sue the Defendants later? COMMENTING ON THE SETTLEMENT How do I tell the Court that I do not think the Settlement is fair? 14. What s the difference between excluding myself and objecting? 15. Can I have a lawyer represent me? PAGE PAGE PAGE PAGE PAGE PAGE IF YOU DO NOTHING... PAGE 16. What happens if I do nothing at all? THE LAWYERS REPRESENTING YOU... PAGE 17. How will the lawyers and costs be paid? THE COURT S FAIRNESS HEARING... PAGE 18. When and where will the Court decide whether to approve the Settlement? 19. Do I have to come to the hearing? 20. May I show up and speak at the hearing? QUESTIONS? VISIT or Call 1-XXX-XXX-XXXX 3

33 GETTING MORE INFORMATION... PAGE 21. Are more details available? QUESTIONS? VISIT or Call 1-XXX-XXX-XXXX 4

34 BASIC INFORMATION 1. Why did I get an or postcard notice? Notices were sent by and postcard to persons identified in the BMV s records as having paid a fee to the BMV at any time from and including March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle operator s license while less than 75 years of age. If you are one of these persons you have the right to know about a proposed settlement of a class action lawsuit that may affect your rights. This Notice explains the Lawsuit, the terms of the Settlement, your legal rights, what benefits may be available, who may be eligible for them, and what you will be giving the Defendants in this Settlement. Judge Heather A. Welch of the Marion County, Indiana, Superior Court is overseeing this class action and the Settlement. The lawsuit is known as Raab v. Waddell and The Indiana Bureau of Motor Vehicles, Cause No. 49D PL The individual who sued is called the Plaintiff. Those the Plaintiff sued are called the Defendants. 2. What is the Lawsuit about? In the Lawsuit, the Plaintiff alleges that since at least 2007 the fee imposed by the BMV for an Operator s License on all applicants under the age of 75 has exceeded the charges that are authorized by Indiana statutes and administrative rules. You can read the Plaintiff s Class Action Complaint at 3. What is a class action? A class action is a lawsuit in which one or more persons called class representatives sue on behalf of other persons who have similar claims. Together all these persons are a class or individually, class members. One court resolves the issues for all class members, except for those who exclude themselves form the class. For this reason, the judge must find that the Settlement of this class action is fair, just, and adequate for all Class members before the Settlement can receive final Court approval. 4. Why is there a Settlement? The Lawsuit has not gone to trial. Instead, the Plaintiff and Defendants agreed to settle to avoid the costs and risks of trial. The Settlement provides the opportunity for payments or other benefits to be made available to Class members, and for the Defendants to receive a release of any right Class members may have to pursue the same legal claims brought, or which could have been brought, in this case against the Defendants. WHO IS IN THE SETTLEMENT? 5. How do I know if I am part of the Settlement? QUESTIONS? VISIT or Call 1-XXX-XXX-XXXX 5

35 You are a member of the Settlement Class if you paid a fee to the Indiana Bureau of Motor Vehicles at any time from March 7, 2007 through June 27, 2013 to obtain or renew a motor vehicle operator s license while less than 75 years of age. THE SETTLEMENT TERMS 6. How does the Settlement affect fees for driver s licenses? On June 28, 2013, as a result of the Lawsuit, the BMV lowered the fees for all operator s licenses issued to persons under the age of 75. The BMV agrees not to increase the Operator s License fees in effect as of June 28, 2013, under any circumstances, unless modified by a subsequently enacted statute or subsequently promulgated administrative rule. The BMV may continue to charge the $2.00 Crossroads 2000 and $0.50 Vehicle Technology fees going forward, provided it initiates the statutory procedure to promulgate administrative rules specifically authorizing such fees within 30 days after the final approval of the Settlement and completes the process within 12 months. If the BMV fails to do so, the parties will return to the position they were in prior to the Settlement with regard to those fees, and no release as to those fees shall be effective. 7. What payments does the Settlement provide? The Defendants have agreed to pay the amount of $30,000,000 ( Settlement Amount under the terms of the Settlement. The entire Settlement Amount will be applied to pay distributions to Class members, the costs of the notifying Class members about the Settlement, a Class Representative fee, attorneys fees, and a cy pres distribution. Each Class member will receive, either in cash or by credit, a Base Refund in the actual amount of his or her base overcharges established by the Lawsuit. Each Class member will also receive, either in cash or by credit, an Additional Refund in the amount of a pro rata share of all funds remaining after the payment of the Base Refunds, attorneys fees and costs of notice, which will be calculated according to the relative amount of his or her individual Base Refunds. Part of the Refunds will be distributed to some Class members through Advance Payments. Advance Payments are overcharge credits that are automatically applied to the BMV transactions of Class members from July 12, 2013 until the Court s final approval of the Settlement. For a period of 3 years after the Court s final approval of the Settlement, any Refunds that have not been paid as Advance Payments will be available to Class members in 2 ways. First, a Class member may obtain his or her Refunds in the form of a check mailed by the BMV by completing a request form on a web page hosted on the BMV s website. The link to the web page containing the request form is, and can be reached from the BMV s home page. A check for the amount of the Refunds will be mailed to the Class member within 45 days from completion of the request form. QUESTIONS? VISIT or Call 1-XXX-XXX-XXXX 6