Re: LLEN
No cash for shareholders but $795000 for the lawyers
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2. Terms of the Settlement
2.1 L&L shall, within thirty calendar days after entry of the Judgment, formally
express and/or implement and maintain in substance the corporate governance reforms, additions,
amendments, or formalizations identified in Exhibit A attached hereto, for a period of no less than
seven years.
2.2 Defendants have agreed to seek reimbursement from L&L's insurers for any
covered costs and expenses required by the Settlement that they incur.
2.3 Defendants acknowledge and agree that the corporate governance reforms,
additions, amendments, or formalizations identified in Exhibit A attached hereto are extensive
and confer substantial benefits upon L&L and its shareholders. Defendants also acknowledge
that the prosecution and settlement of the Actions were substantial factors in their decision to
adopt and/or implement the corporate governance reforms set forth in Exhibit A, and in the
settlement of the Washington Securities Class Action and the New York Securities Class Action.
4. Attorneys' Fees and Expenses
4.1 In recognition of the substantial benefits conferred upon L&L as a direct result of
the prosecution and Settlement of the Actions, and subject to Court approval, L&L's insurer shall
pay Plaintiffs' Counsel attorneys' fees and expenses in the agreed-to amount of $795,000 (the
"Fee and Expense Amount"). The Fee and Expense Amount was negotiated with the help of the
Mediator after the Settling Parties had substantially negotiated the material terms of the
Settlement and was the result of arm's-length negotiations between the Settling Parties.
AI
