SETTLEMENT AGREEMENT AND RELEASE. This settlement agreement was executed by and between Plaintiffs Amelia Thompson

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1 SETTLEMENT AGREEMENT AND RELEASE I. Recitals. A. Introduction. This settlement agreement was executed by and between Plaintiffs Amelia Thompson and Monique Glenn-Leufroy (collectively, Named Plaintiffs ), individually and on behalf of a Class of similarly situated Washington residents (the Settlement Class ) and Defendants Reliant Account Management, LLC, and Reliant Account Management Systems, LLC. These two Defendants are sometimes collectively referred to herein as the RAM Defendants, and this settlement agreement is sometimes referred to herein as the RAM Settlement Agreement. B. Purpose. Named Plaintiffs filed a Class Action Complaint against the RAM Defendants and others not party to this Agreement (including Green Financial Services International, Inc. d/b/a Consumer Law Council, LLC ( CLC ); Garry D. Smith, Jr., individually and on behalf of the marital community of Garry D. Smith, Jr. and Jane Doe Smith ( Smith ); Chadrick W. Fowler, individually and on behalf of the marital community of Chadrick W. Fowler and Jane Doe Fowler ( Fowler ) (collectively referred to as the CLC Defendants ); DSS Support Services, Inc., a Florida corporation; Brite Solutions, Inc., a Florida corporation; Jared B. Schagrin, individually; and Jane and John Does 1-10), in the Spokane County Superior Court, State of Washington, Case No (the Lawsuit. ). The Lawsuit is related to, among other things, the Defendants receipt of debt adjusting payments from Washington consumers enrolled in various debt adjusting programs (including but not limited to the CLC debt adjusting program), distribution of debt settlement payments (if any achieved) to various unsecured creditors on behalf of Washington consumers enrolled in debt adjusting programs, and receipt of debt adjusting fees for such services. Named Plaintiffs alleged that the RAM Defendants violated the Washington Debt Adjusting statute, chapter RCW, and the Washington Consumer Protection Act, chapter RCW. The RAM Defendants and Named Plaintiffs wish to formalize a complete, full and final resolution and FINAL SETTLEMENT AGREEMENT AND RELEASE Page 1 of 9

2 settlement of all claims, disputes, and controversies as to the parties to this Agreement by means of court approval of their settlements. C. No Admission of Liability. Nothing in this Settlement Agreement shall be construed as an admission by the RAM Defendants as to the truth or validity of any allegations in the Second Amended Complaint, or of any fault, wrongdoing, or liability. D. Reasonableness of Settlement. Plaintiffs and Class Counsel for the Settlement Class judge the Settlement Agreement as providing fair, reasonable, and adequate relief to the Class Members and find it to be in the best interests of the Settlement Class. Named Plaintiffs and Defendants reached agreement as a result of informed, arm s length negotiations by attorneys highly experienced in complex class litigation. II. Settlement Terms. A. The Settlement Class. Pursuant to Washington Court Rule 23, the parties hereto agree to certification, for settlement purposes only, of a Class consisting of: All Washington residents for whom the RAM Defendants received fees (between December 11, 2010 and the date of Spokane County Superior Court s final approval of this Class Settlement Agreement) for processing payments pursuant to the class members respective debt adjusting program. B. Settlement Fund. The Settlement Fund shall be $75, and will be funded and distributed as follows: 1. The RAM Defendants shall pay the full $75, by February 15, This amount shall be paid by the RAM Defendants in eleven (11) consecutive monthly installments at a minimum rate of $6, per month, commencing April 15, 2015, until the Settlement Fund is paid in full by February 15, The RAM Defendants shall make each monthly payment in the form of a check payable to The Scott Law Group, Page 2 of 9

3 P.S. Trust Account. Each installment payment is due by the 15th of each consecutive month until paid in full. 2. Any payment not received by 5:00 p.m. P.S.T. to The Scott Law Group, P.S. s trust account on the date on which it is due shall be considered late. The Scott Law Group shall provide notice to the RAM Defendants of any late payment and upon receipt of that notice, the RAM Defendants shall have 10 calendar days to cure any late payment. Failure to cure any late payment after 10 calendar days upon receipt of notice of late payment by The Scott Law Group shall constitute a material breach of this agreement. 3. The Settlement Fund shall be used to make all necessary payments under the Settlement Agreement, including but not limited to, all awards to Class Members, incentive awards to the Class Representatives (in an amount to be approved by the Court), Class Members attorney fees and costs, costs associated with the sending of Class Notice and payments to the Class, and all other costs incurred by the Claims Administrator arising from the administration of the Settlement, as approved by the Court. 4. As soon as practicable after final approval, The Scott Law Group, P.S. shall first distribute or allocate court-approved incentive awards to Named Plaintiffs and attorneys fees and costs (including attorneys fees and costs associated with claims administration). The amount remaining in the Settlement Fund following these allocations will be deemed the Net Settlement Fund. 5. The Net Settlement Fund shall be distributed to Class Members. Each Settlement Class Member shall be entitled to an individual award representing the Members pro rata share of the Net Settlement Funds. The Class Members pro rata share is determined by the amount of fees Page 3 of 9

4 received by RAM Defendants pursuant to their respective debt settlement program. Each Class Member s pro rata share shall be calculated according to the formula A / B x C - where A represents the total fees received by the RAM Defendants from the individual Class Member, B represents the aggregate total of all fees paid to RAM Defendants by all Class Members, and C represents the Net Settlement Fund. C. Confession of Judgment. Concurrent with the signing of this agreement, the RAM Defendants stipulate to the entry of judgment in the amount of $97, plus statutory interest, reasonable attorney s fees and costs, and shall sign the confession of judgment attached hereto as Exhibit A. In the event of a default by the RAM Defendants in performance of the obligations created by this Settlement Agreement, Named Plaintiffs and Class Counsel shall be entitled to file and enforce this confession of judgment with the Spokane County Superior Court; provided, however, that the RAM Defendants shall be credited with an offset to the confession of judgment for any payments previously made pursuant to this Agreement. Class Counsel shall be entitled to recover any attorneys fees and costs associated with enforcing the judgment. The Parties agree that no part of the confession of judgment constitutes a penalty for default; rather, the confession of judgment is an agreed-upon settlement amount, but Named Plaintiffs and Class Counsel shall credit the RAM Defendants with full satisfaction of the settlement described after full compliance with this Agreement. This relief will be memorialized substantially in the form attached hereto as Exhibit A. Page 4 of 9

5 D. Class Member Information. As further consideration for Settlement, and in order to effectuate claims administration and communicate with Class Members, the RAM Defendants agree to, fully and in good faith, cooperate with Class Counsel in obtaining Class Member contact and payment information from the RAM Defendants and any outside sources if necessary. E. Class Notice. The Parties agree to request approval of the form of notice attached hereto as Exhibit B. The fact that the Court may require changes in the form of notice does not invalidate this Class Settlement Agreement if the changes do not materially affect the substance or terms of the Class Settlement Agreement. Notice to the proposed Settlement Class shall be provided as ordered by the Court. The Parties anticipate that Members of the proposed Settlement Class will receive such notice directly through first class mail and also by electronic mail using the most recent contact information available. No later than thirty (30) business days after the entry of an order granting preliminary approval of this Settlement Agreement, the Claims Administrator shall issue notice to all Settlement Class Members in the form and manner approved by the Court. The date on which this notice is sent shall be deemed the Initial Notice Mailing Date. III. Settlement Administration. A. The parties agree that The Scott Law Group, P.S. shall serve as Claims Administrator. B. To facilitate distribution of Court-approved notice and settlement awards to Settlement Class Members, the RAM Defendants shall, no later than seven (7) calendar days following the Court s entry of an order granting preliminary approval of this Class Settlement Agreement, provide the following information in electronic form to Class Counsel: (1) the name and last-known contact information known to the RAM Defendants (e.g., mailing address, Page 5 of 9

6 address, and/or phone number) of each Settlement Class Member; and (2) the total fees that the RAM Defendants received from each Settlement Class Member. C. The Claims Administrator shall be responsible for sending Class Notice of this proposed Class Settlement, corresponding with the Class regarding opt outs, responding to Class Members questions about the Settlement, transmitting payments as provided herein, and attending to other administrative obligations required to fulfill the requirements of this Settlement. D. All individuals who properly file a timely written Request for Exclusion shall be excluded from the Class and such individuals shall have no rights under, and will not be bound by, this Settlement Agreement. A request shall be deemed timely if it is postmarked no later than sixty (60) days after the date Class Notice is sent. At least ten (10) days in advance of the Final Approval Hearing, Class Counsel shall file and serve an affidavit identifying all persons who have made a timely Request for Exclusion. E. The final approval hearing will be held on such date as the Court, in its discretion, may order. F. As soon as practicable after the Court s entry of a Final Order approving Class Settlement, and so long as no appeal is taken, the Claims Administrator shall distribute the Settlement Fund as set forth in Section II, paragraph B. Individuals who timely exclude themselves from the Class shall not be entitled to any award. Each check issued pursuant to this Class Settlement Agreement shall be void if not negotiated within one hundred and twenty (120) days after its date of issue and shall contain a legend to such effect. G. Class Counsel, upon application to and approval from the Court, shall be reimbursed for attorney fees, litigations costs, and claims administration fees and costs from the Settlement Fund. H. In the event that any portion of the Settlement Fund has not been distributed as provided for in this Agreement after 120 days have passed since the issuance of the final check to Class Members and after the final distribution of Class Counsel s attorney fees, litigation costs Page 6 of 9

7 and claims administration fees and costs, whichever is later, the remaining funds shall be paid to the Legal Foundation of Washington, pursuant to Washington Court Rule 23(f). IV. Release by Plaintiffs. A. Upon the Court s issuance of a Final Order and Judgment approving this Class Settlement under the terms stated herein, and except for the obligations expressly created by this Agreement, Plaintiffs and Class Members fully, finally, and forever release, relinquish, and discharge the RAM Defendants from all claims against such Defendants that were or could have been brought in this Action, including a release for violation of Washington s Debt Adjusting Act, RCW 18.28, et seq., and violation of Washington s Consumer Protection Act, RCW 19.86, et seq., that relate in any way to Defendants debt adjusting services. B. In the event that this Settlement Agreement is not given final approval in all material respects by the Court, or the Court s Final Order is reversed on appeal, the Settlement Agreement shall become null and void and all settlement funds must be immediately returned to the Trust Account of the Law Office of David W. Wiechert, counsel for the RAM Defendants, within fourteen (14) business days. V. General Provisions. A. This Agreement shall be governed by the laws of the State of Washington. B. Subject to Court approval, all proceedings and deadlines in this class action shall be stayed as to the RAM Defendants pending and following preliminary approval of the Settlement, except as necessary to implement the terms of this Settlement Agreement. C. This is a fully integrated Agreement. It contains the full and final expression of the Parties relative to its subject matter and supersedes any and all prior representations, understandings, and agreements with respect to the subject matter of this Agreement. There are no other representations, agreements, arrangements, or understandings, oral or in writing. D. By signing this agreement, each Party acknowledges and warrants that he or she has not assigned or transferred any claim he or she is releasing, or any rights to such claim, in whole or in part. Page 7 of 9

8 E. The Washington Superior Court, Spokane County, shall retain continuing jurisdiction over this action for the purpose of implementing the Settlement and all related matters, including this Settlement Agreement, Final Approval of the Settlement, Final Judgment, and post-judgment issues. F. The parties consent to entry of Judgment in this matter that comports with the terms of this Settlement Agreement, and waive their rights to appeal from such Judgment. G. The Parties agree to undertake their reasonable best efforts, including, without limitation, all efforts contemplated by the Settlement Agreement, to carry out the terms of this Agreement. H. Should any Settling Defendant violate any term of his individual Settlement Agreement, and the Class Representatives, on behalf of the Class, elect to pursue an enforcement Action, the breaching Settling Defendant shall be liable for all attorneys fees and costs incurred by virtue of creating the necessity for the Class Representatives, on behalf of the Class, to bring said action. I. This Agreement may be executed in counterparts, and by facsimile and/or , with the same effect as if the Parties had signed the same document. All counterparts shall be construed together and shall constitute one agreement. Absent an original signature, it is hereby understood and agreed that a facsimile and/or ed signature shall be binding upon the Parties and otherwise admissible under the Best Evidence Rule. Page 8 of 9

9 THE PARTIES HEREBY CONSENT TO THE ABOVE SETTLEMENT TERMS BY THE FOLLOWING SIGNATURES: For Plaintiffs and the Settlement Class: DATED: DATED: For Defendants: DATED: DATED: Page 9 of 9

10 Apr :47pm P001/0O1 THE PARTIES HEREBY CONSENT TO THE ABOVE SETTLEMENT TERMS BY THE FOLLOWING SIGNATURES: For Plaintiffs and the Settlement Class; DATED %i\\sl DATED: For Defendants: DATED: DATED: Page 9 of9

11 T H E PA RT I E S H E R E B Y C O N S E N T TO T H E A B O V E S E T T L E M E N T T E R M S B Y T H E F O L L O W I N G S I G N A T U R E S : DATED: F o r D e f e n d a n t s : DATED: DATED: Page 9 of 9

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