mcgaughey erickson - blountinternationalsettlement.com
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STIPULATION OF SETTLEMENT 1
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
Aurelia Erickson, OSB #126170
Kevin Kress, OSB #146003
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Tel. (503) 223-7555
Liaison Counsel for Plaintiffs
[Additional counsel listed on signature page.]
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, and DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
STIPULATION OF SETTLEMENT
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STIPULATION OF SETTLEMENT 2
This Stipulation of Settlement dated as of April 23, 2019 (the “Stipulation”), is made and
entered into by and among the following Settling Parties to this action (the “Action”): (i) Lead
Plaintiffs Elia Azar (“Azar”) and Dean Alfange (“Alfange,” and with Azar, “Lead Plaintiffs”); and
(ii) Blount International, Inc. (“Blount” or the “Company”), Joshua L. Collins, David A. Willmott,
Robert E. Beasley, Jr., Ronald Cami, Andrew C. Clarke, Nelda J. Connors, E. Daniel James,
Harold E. Layman, Max L. Lukens, and Daniel J. Obringer (collectively, the “Board” or the
“Individual Defendants,” and together with Blount, the “Defendants”), by and through their
counsel of record in the Action. This Stipulation is intended by the Settling Parties to fully, finally,
and forever resolve, discharge, and settle the Released Claims upon and subject to the terms and
conditions hereof.
I. THE ACTION
On December 10, 2015, Blount announced that the Company would be acquired by
American Securities LLC (“American Securities”) and P2 Capital Partners LLC (“P2”), for $10
per share, or approximately $855 million (the “Transaction”).
On March 9, 2016, Blount filed a definitive proxy statement on a Schedule 14A (the “Proxy
Statement”) with the U.S. Securities and Exchange Commission (the “SEC”), setting forth certain
information regarding the Transaction and announcing that the special meeting where Blount
stockholders would be asked to vote on the Transaction would occur on April 7, 2016.
On March 21, 2016, Azar and Alfange filed a Class Action Allegation Complaint (Doc. 1)
on behalf of themselves and all other similarly situated public stockholders of Blount: (1) against
Blount and the Individual Defendants for violating Section 14(a) of the Securities and Exchange
Act of 1934 (the “Exchange Act”), 15 U.S.C. § 78n, for alleged material misrepresentations and
omissions in the Proxy Statement; (2) against the Individual Defendants and the Purchasers
(defined below) for violating Section 20(a) of the Exchange Act, 15 U.S.C. § 78t(a), for acting as
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STIPULATION OF SETTLEMENT 3
“control persons” with respect to such alleged violations; and (3) against American Securities, P2,
ASP Blade Intermediate Holdings, Inc. (“Merger Parent”), and ASP Blade Merger Sub, Inc.
(“Merger Sub,” and collectively with American Securities, P2, and Merger Parent, the
“Purchasers”), Joshua L. Collins and David A. Willmott for aiding and abetting such alleged
violations.
Also on March 21, 2016, Azar and Alfange filed a Motion for a Preliminary Injunction
(Doc. 2), which sought to enjoin the April 7, 2016 vote on the Transaction, and a Motion for
Expedited Discovery and Proceedings (Doc. 3), which sought on an expedited basis both discovery
and a hearing related to Plaintiffs’ preliminary injunction motion.
On March 29, 2016, the Court denied Azar’s and Alfange’s Motion for Expedited
Discovery and Proceedings (Docs. 38), and Azar and Alfange withdrew their Motion for a
Preliminary Injunction on March 30, 2016 (Doc. 39).
On April 7, 2016, the majority of Blount’s shares of common stock outstanding were voted
in favor of the Transaction; and on April 12, 2016, the Transaction was completed.
On July 1, 2016, the Court appointed Azar and Alfange as Lead Plaintiffs and approved
Lead Plaintiffs’ selection of Johnson & Weaver, LLP and Levi & Korsinsky, LLP as Lead Counsel
and of McGaughey Erickson as Liaison Counsel. (Doc. 46.)
On August 1, 2016, Lead Plaintiffs filed their Amended Class Action Allegation
Complaint. (Doc. 49.)
On September 16, 2016, Defendants and the Purchasers filed motions to dismiss the
Amended Complaint. (Docs. 56-58.) Lead Plaintiffs opposed the motions on October 31, 2016.
(Doc. 59.) On November 3, 2016, Lead Plaintiffs voluntarily dismissed the Purchasers from this
Action. (Doc. 60.) On November 21, 2016, Defendants filed their reply brief in further support of
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STIPULATION OF SETTLEMENT 4
their motion to dismiss. (Doc. 62.) Oral argument on Defendants’ motion to dismiss was held on
December 19, 2016. (Doc. 66.)
On March 20, 2017, the Court denied Defendants’ motion to dismiss, finding that Lead
Plaintiffs’ Amended Class Action Allegation Complaint stated a claim for violations of §§ 14(a)
and 20(a) of the Exchange Act. (Doc. 68.) The Court denied the Purchasers’ motion to dismiss as
moot because Lead Plaintiffs had voluntarily dismissed the Purchasers. (Id.)
On April 17, 2017, Defendants answered Lead Plaintiffs’ Amended Class Action
Allegation Complaint. (Doc. 81.)
On May 30, 2017, Lead Plaintiffs and Defendants filed a Joint Rule 26(f) Case Plan, and
the Court adopted the parties’ joint proposed schedule on June 5, 2017. (Doc. 84, 88). Between
summer 2017 and fall 2018, the Settling Parties conducted extensive discovery. Following and
alongside extended meet-and-confer sessions and several discovery disputes heard by the Court,
Lead Plaintiffs, Defendants, and third parties collectively produced hundreds of thousands of pages
of documents, and 19 party and non-party depositions were taken. Moreover, the Settling Parties
engaged in extensive written discovery, including multiple sets of requests for production of
documents and interrogatories and requests for admissions.
Throughout discovery, the Settling Parties engaged in periodic discussions concerning a
potential resolution of the Action. In particular, the Settling Parties attended an in-person
mediation on October 17, 2017 before a well-respected independent third-party mediator, David
Geronemus, and engaged in multiple follow-up telephone conversations with the mediator.
On October 12, 2018, following several further telephone calls with the mediator, the
Settling Parties attended a second in-person mediation before David Geronemus. At the conclusion
of the mediation, the Settling Parties agreed to resolve the Action pursuant to the terms forth herein.
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STIPULATION OF SETTLEMENT 5
II. CLAIMS AND BENEFITS OF SETTLEMENT
Lead Plaintiffs believe that the claims asserted in the Action have merit and that the
evidence developed to date supports their claims. However, Lead Plaintiffs and their counsel
recognize and acknowledge the expense and length of continued proceedings necessary to
prosecute the Action against Defendants through summary judgement, trial, and appeals. Lead
Plaintiffs and their counsel also have taken into account the uncertain outcome and the risks of any
litigation, especially in complex actions such as the Action, and the difficulties and delays inherent
in such litigation. Lead Plaintiffs and their counsel also are mindful of the inherent problems of
proof under and possible defenses to the violations asserted in the Action. Lead Plaintiffs and their
counsel believe that the Settlement set forth in this Stipulation confers substantial benefits upon
the Class. Based on their evaluation, Lead Plaintiffs and their counsel have determined that the
Settlement set forth in this Stipulation is in the best interests of Lead Plaintiffs and the Class.
III. DEFENDANTS’ DENIAL OF WRONGDOING AND LIABILITY
Each Defendant has denied and continues to deny each and all of the claims and contentions
alleged in the Action. Each Defendant has expressly denied and continues to deny all allegations
of wrongdoing or liability arising out of any of the conduct, statements, acts or omissions alleged,
or that could have been alleged, in the Action, including, but not limited to, all contentions
concerning Defendants’ business, conduct and public statements, as well as contentions that any
such conduct or events constitute wrongdoing or give rise to legal liability. Defendants also have
denied and continue to deny, inter alia, the allegations that Lead Plaintiffs or the Class suffered
damages or that Lead Plaintiffs or the Class were harmed in any way by any of Defendants or by
the conduct alleged in the Action.
Nonetheless, Defendants have concluded that it is desirable that the Action be fully and
finally settled in the manner and upon the terms and conditions set forth in this Stipulation.
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Defendants have taken into account the uncertainty and risks inherent in any litigation, especially
in complex cases like the Action. Further, Defendants recognize the expense of defending this
Action. Further, this stipulation, whether or not consummated, together with any proceedings
related to any settlement, or any terms of any settlement, whether or not consummated, shall in no
event be construed as or deemed to be evidence supporting, or an admission or concession on the
part of any Defendant with respect to, any claim or of any fault or liability or wrongdoing or
damage whatsoever, or any infirmity in any of the defenses that any of the Defendants have or
could have asserted. Defendants state that they are entering into this Settlement (as defined below)
solely in order to eliminate the burden, expense, uncertainty, and risk of further litigation, and to
avoid the business disruptions associated therewith.
IV. TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT
NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among
Lead Plaintiffs (for themselves and the Class Members) and Defendants, by and through their
respective counsel or attorneys of record, that, subject to the approval of the Court, the Action and
the Released Claims shall be fully, finally, and forever compromised, settled, released, and
discharged, and the Action shall be dismissed with prejudice, and without costs except as expressly
set forth herein as to all Settling Parties, upon and subject to the terms and conditions of this
Stipulation, as follows.
1. DEFINITIONS
As used herein the following terms have the meanings specified below. In the event of any
inconsistency between any definition set forth below and any definition in any other document
related to the Settlement, the definition set forth below shall control.
1.1. “Action” means the above-titled action, captioned Azar v. Blount International,
Inc., et al., Case No. 3:16-CV-00483-SI, pending in the United States District Court for the District
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of Oregon before the Honorable Michael H. Simon.
1.2. “Authorized Claimant” means any Class Member whose claim for recovery has
been allowed pursuant to the terms of this Stipulation.
1.3. “Blount” means Blount International, Inc.
1.4. “Claims Administrator” means the firm designated by Lead Counsel, following
consultation with and agreement by the Lead Plaintiffs, subject to Court approval, to provide all
notices approved by the Court to Class Members, to process Proofs of Claim, and to administer
the Settlement.
1.5. “Class Member” means any member of the Class.
1.6. “Class” means all persons who held Blount common stock continuously from
March 4, 2016, the record date for voting on the Transaction, through April 12, 2016, when the
Transaction was completed. Excluded from the Class are Defendants, the Purchasers, the officers
and directors of the Company at all relevant times, members of the immediate families of the
Individual Defendants and their legal representatives, heirs, successors or assigns, any entity in
which Defendants have or had a controlling interest, and any Person who timely and validly seeks
exclusion from the Class.
1.7. “Complaint” means the Amended Class Action Allegation Complaint filed by Lead
Plaintiffs on August 1, 2016. (Doc. 49.)
1.8. “Court” means the United States District Court for the District of Oregon, Portland
Division.
1.9. “Defendants” means Blount and the Individual Defendants.
1.10. “Defense Counsel” means the law firms Cravath, Swaine & Moore LLP, Davis
Polk & Wardwell LLP, Kirkland & Ellis LLP, Miller Nash Graham & Dunn LLP and Stoel Rives
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LLP.
1.11. “Effective Date” means the first date by which all of the events and conditions
specified in ¶ 8.1 of this Stipulation have been met and have occurred.
1.12. “Escrow Account” means the interest-bearing escrow account to be established by
the Escrow Agent at a federally insured banking institution into which the Settlement Amount
shall be deposited.
1.13. “Escrow Agent” means a reputable financial institution to be selected by Lead
Counsel, with the consent of Defense Counsel, which shall not unreasonably be withheld.
1.14. “Escrow Agreement” means the escrow agreement between Lead Counsel, on
behalf of Lead Plaintiffs and the Class, and the Escrow Agent. The terms of the Escrow Agreement
shall be subject to approval by Defense Counsel, which shall not unreasonably be withheld.
1.15. “Final”, with respect to the Judgment, means the date on which the last of the
following shall have occurred: (i) the expiration of the time to file a motion to alter or amend the
Judgment under Federal Rule of Civil Procedure 59(e) has passed without any such motion having
been filed; (ii) the expiration of the time in which to appeal the Judgment has passed without any
appeal having been taken, which date shall be deemed to be thirty (30) calendar days following
the entry of the Judgment, unless the date to take such an appeal shall have been extended by Court
order or otherwise; and (iii) if a motion to alter or amend is filed or if an appeal is taken, the
determination of that motion or appeal in such a manner as to permit the consummation of the
Settlement substantially in accordance with the terms and conditions of this Stipulation. For
purposes of this paragraph, an “appeal” shall include any petition for a writ of certiorari or other
writ that may be filed in connection with approval or disapproval of the Settlement, but shall not
include any appeal which concerns only the issue of attorneys’ fees and expenses or any allocation
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of the Settlement Fund, as defined below.
1.16. “Final Approval Hearing” means the hearing to determine whether the proposed
Settlement embodied by this Stipulation is fair, reasonable, and adequate to the Class, and whether
the Court should enter a Judgment approving the proposed Settlement.
1.17. “Individual Defendants” means Joshua L. Collins, David A. Willmott, Robert E.
Beasley, Jr., Ronald Cami, Andrew C. Clarke, Nelda J. Connors, E. Daniel James, Harold E.
Layman, Max L. Lukens, and Daniel J. Obringer.
1.18. “Judgment” means the judgment to be rendered by the Court, substantially in the
form attached hereto as Exhibit E, or such other substantially similar form as is entered by the
Court that does not prompt either Settling Party to terminate the Settlement, that terminates,
pursuant to Federal Rule of Civil Procedure 54(b), all proceedings of any kind in this Action as
between Plaintiffs (including the Class) and Defendants and dismisses the Action and all claims
therein against Defendants with prejudice to all Releasors.
1.19. “Lead Counsel” means Johnson Fistel, LLP, 99 Madison Avenue, 5th Floor, New
York, New York 10016, and Levi & Korsinsky, LLP, 1111 Summer Street, Suite 403, Stamford,
Connecticut 06905.
1.20. “Lead Plaintiffs” means Elia Azar and Dean Alfange.
1.21. “Net Settlement Fund” means the fund described in ¶ 6.2(d).
1.22. “Notice” means the Notice of Pendency and Proposed Settlement of Class Action,
which, subject to the approval of the Court, will be sent to the Class substantially in the form
attached hereto as Exhibit B.
1.23. “Notice and Administration Expenses” means all costs, fees, and expenses incurred
in connection with providing notice to the Class and the administration of the Settlement, including
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but not limited to: (i) providing notice of the proposed Settlement by mail, publication, and other
means to Class Members; (ii) receiving and reviewing claims; (iii) applying the allocation;
(iv) communicating with Persons regarding the proposed Settlement and claims administration
process; (v) distributing the proceeds of the Settlement; (vi) fees related to the escrow account and
investment of the Settlement Fund; and (vii) Taxes and Tax Expenses.
1.24. “Person” means an individual, corporation, partnership, limited partnership,
association, joint stock company, estate, legal representative, trust, unincorporated association,
government or any political subdivision or agency thereof, and any business or legal entity and
their spouses, heirs, predecessors, successors, representatives, or assignees.
1.25. “Plaintiffs” means Lead Plaintiffs and the Class defined herein.
1.26. “Preliminary Approval Order” means the preliminary approval order (substantially
in the form attached hereto as Exhibit A) as entered by the Court for mailing and publication of
notice to the Class.
1.27. “Proof of Claim” means the Proof of Claim and Release form substantially in the
form attached as Exhibit C hereto.
1.28. “Purchasers” means American Securities LLC, P2 Capital Partners LLC, ASP
Blade Intermediate Holdings, Inc., and ASP Blade Merger Sub, Inc.
1.29. “Related Parties” means each of the Parties’ past or present directors, officers,
employees, partners, insurers, co-insurers, reinsurers, principals, controlling shareholders,
attorneys, accountants, auditors, financial advisors, personal or legal representatives, predecessors,
successors, parents, subsidiaries, divisions, affiliates, joint ventures, assigns, spouses, heirs,
estates, related or affiliated entities, any entity in which any Party has a controlling interest, any
members of any Party’s immediate family, or any trust of which any Party is the settlor or which
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is for the benefit of any Party’s immediate family.
1.30. “Released Claims” means any and all claims that have or could have been asserted
in this Litigation, as well as and any all claims that have been asserted, could have been asserted,
or could be asserted now or in the future by any Class Member in his, her, or its capacity as a
purchaser, seller, or holder of Blount common stock that have arisen from, could have arisen from,
or relate in any manner to the Transaction, the process leading up to the Transaction, the Proxy
Statement and any supplement thereto, or the financial projections referenced in the Complaint.
“Released Claims” include “Unknown Claims,” as defined in ¶ 1.40 of this Stipulation.
Notwithstanding any other provisions to the contrary herein, “Released Claims” do not include
claims to enforce the Settlement.
1.31. “Released Persons” means each and all of Defendants and each of their respective
Related Parties.
1.32. “Releasors” refers jointly and severally, individually and collectively, to Lead
Plaintiffs and all Class Members, and their Related Parties.
1.33. “Settlement Amount” means Three Million, Fifty-Nine Thousand U.S. Dollars
($3,059,000.00) in cash.
1.34. “Settlement Fund” means the Settlement Amount plus all interest and accretions
thereto after being transferred to an account controlled by the Escrow Agent, and which may be
reduced by payments or deductions as provided for herein or by court order.
1.35. “Settlement” means the settlement contemplated by this Stipulation.
1.36. “Settling Parties” means, collectively, Lead Plaintiffs and Defendants.
1.37. “Stipulation” means this Stipulation of Settlement, including the recitals and
Exhibits hereto.
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1.38. “Summary Notice” means the Summary Notice of Pendency and Proposed
Settlement of Class Action, which, subject to the approval of the Court, will be published
substantially in the form attached as Exhibit D hereto.
1.39. “Transaction” means the transaction announced on December 10, 2015 and
completed on April 12, 2016 pursuant to which the Purchasers acquired all of the outstanding
shares of Blount common stock for $10.00 per share.
1.40. “Unknown Claims” means any Released Claims which Lead Plaintiffs or any Class
Member, as of the Effective Date, does not know or suspect to exist in his, her, or its favor, whether
direct, indirect, or derivative, including those which, if known by him, her, or it, might have
affected his, her, or its settlement with and release of the Released Persons, or might have affected
his, her, or its decision not to object to this Settlement. With respect to any and all Released Claims,
the Settling Parties stipulate and agree that, upon the Effective Date, Lead Plaintiffs shall expressly
waive and each of the Class Members shall be deemed to have, and by operation of the Judgment
shall have, expressly waived, the provisions, rights and benefits of California Civil Code § 1542,
which provides:
A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement
with the debtor.
Lead Plaintiffs shall expressly waive and each of the Class Members shall be deemed to have, and
by operation of the Judgment shall have, expressly waived, any and all provisions, rights and
benefits conferred by any law of any state or territory of the United States, or principle of common
law that is similar, comparable or equivalent to California Civil Code § 1542, or that might
otherwise operate to bar or limit the release of Unknown Claims. Lead Plaintiffs and Class
Members may hereafter discover facts in addition to or different from those which he, she, or it
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now knows or believes to be true with respect to the subject matter of the Released Claims, but
Lead Plaintiffs shall expressly release and each Class Member, upon the Effective Date, shall be
deemed to have, and by operation of the Judgment shall have, expressly, fully, finally, and forever
settled and released any and all Released Claims, known or unknown, suspected or unsuspected,
contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore
have existed, upon any theory of law or equity now existing or coming into existence in the future,
including, but not limited to, conduct that is negligent, intentional, with or without malice, or a
breach of any duty, law, or rule, without regard to and notwithstanding the subsequent discovery
or existence of such different or additional facts. Lead Plaintiffs acknowledge, and the Class
Members shall be deemed by operation of the Judgment to have acknowledged, that the foregoing
waiver was separately bargained for and a key element of the Settlement of which this release is a
part.
2. THE SETTLEMENT
2.1. The Settlement Fund
2.1.1. Within fifteen (15) business days following (a) entry on the Court’s docket of the
Preliminary Approval Order, either in or substantially in the form attached hereto as Exhibit A,
granting the Court’s preliminary approval of this Settlement and (b) receipt by Defense Counsel
from Lead Counsel of full and complete wiring or other instructions necessary for such payment,
an executed W-9 for the Settlement Fund, and payee name and address for delivery of payment by
check, Blount shall transfer or cause to be transferred the Settlement Amount to the Escrow Agent
for deposit into the Escrow Account, in full and complete settlement of the Released Claims.
Defendants and their respective Related Parties shall have no further monetary liability after
payment of the Settlement Amount, and in no event shall any Defendant (or any of Defendants’
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STIPULATION OF SETTLEMENT 14
respective Related Parties) be liable for payment of any amount other than the Settlement Amount,
including, without limitation, interest on the Settlement Amount or payment to Class members of
their attorney’s fees or reimbursement of any other fees or expenses. If the entire Settlement
Amount is not timely transferred to the Escrow Agent as provided in this paragraph, the Settlement
may be voided at the option of Lead Plaintiffs if: (i) Lead Counsel has notified Defense Counsel
in writing of Lead Counsel’s intention to terminate the Settlement, and (ii) the entire Settlement
Amount is not transferred to the Escrow Agent within ten (10) business days after Lead Counsel
has provided such written notice.
2.1.2. In no event shall Defendants have any responsibility, financial obligation, or
liability whatsoever with respect to the operation, management, or disbursement of the escrow
account once established, or with respect to the investment, distribution, use, or administration of
the Settlement Fund, including, but not limited to, the costs and expenses of such investment,
distribution, use, or administration. Defendants shall likewise have no responsibility whatsoever
for the allocation or distribution of the Settlement Fund and shall not be responsible or otherwise
liable, including to or with Lead Plaintiffs, Lead Counsel, any Class Member, or the Claims
Administrator, for any disputes relating to the amount, allocation, or distribution of any fees, costs,
or awards of any kind. After making payment of the Settlement Amount in accordance with ¶ 2.1.1
herein, Defendants shall not be liable for any additional payments of any kind to Lead Plaintiffs,
Class Members, Lead Counsel, or to any other person or entity with respect to this Settlement or
Stipulation.
2.2. The Escrow Agent
2.2.1. The Escrow Agent shall invest the Settlement Amount deposited pursuant to ¶ 2.1.1
in instruments backed by the full faith and credit of the United States Government or fully insured
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by the United States Government or an agency thereof and shall reinvest the proceeds of these
instruments as they mature in similar instruments at their then-current market rates. The Settlement
Fund shall bear all risks related to investment of the Settlement Fund in accordance with the
guidelines set forth in this paragraph.
2.2.2. The Escrow Agent shall not disburse the Settlement Fund except as provided in this
Stipulation and by an order of the Court.
2.2.3. Subject to further order(s) and/or direction(s) as may be made by the Court, or as
provided in this Stipulation, the Escrow Agent is authorized to execute such transactions as are
consistent with the terms of this Stipulation.
2.2.4. All funds held by the Escrow Agent shall be deemed and considered to be in
custodia legis of the Court and shall remain subject to the jurisdiction of the Court, until such time
as such funds shall be distributed pursuant to this Stipulation and/or further order(s) of the Court.
2.2.5. Lead Counsel shall be solely responsible for designating a Claims Administrator,
subject to approval by the Court. The Escrow Agent may pay to the Claims Administrator from
the Settlement Fund, without prior approval from Defendants or the Court, the costs and expenses
reasonably and actually incurred in connection with the administration of the Settlement,
including, without limitation: the cost of identifying and locating Class Members, mailing the
Notice of Pendency and Proposed Settlement of Class Action and Proof of Claim and Release and
publishing notice (such amount shall include, without limitation, the actual costs of publication,
printing and mailing the Notice, and reimbursement to nominee owners for forwarding notice to
their beneficial owners), soliciting Class claims, assisting with the filing of claims, administering
and distributing the Net Settlement Fund to Authorized Claimants, processing Proof of Claim and
Release forms, and paying escrow fees and costs, if any, and the administrative expenses incurred
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and fees charged by the Claims Administrator in connection with providing notice and processing
the submitted claims (“Notice and Administration Expenses”).
2.2.6. Except as set forth in this ¶ 2.2.6, Defendants will not have any responsibility for,
involvement in, or liability for, and Defendants will not be requested or required to pay any costs,
fees, or expenses in connection with, providing notice to putative Class Members, the
administration of the Settlement Fund, the allocation, disbursement, and payment of the Settlement
proceeds, or the reviewing, challenging, or determination of claims of putative Class Members.
Defendants shall cooperate in the administration of the Settlement to the extent reasonably
necessary to effectuate its terms, including providing information in electronic searchable format
from Blount transfer records concerning the identity of putative Class Members. To that end,
within fourteen (14) calendar days of the execution of this Stipulation, Defendants shall provide
or cause to be provided to Lead Counsel information reasonably available from Blount’s transfer
agent regarding the identity and the addresses of putative Class Members. Any reasonable charges,
fees, or expenses incurred by Blount for providing this information, to the extent there are any,
will be paid from the Settlement Fund.
2.3. Taxes
2.3.1. The Settling Parties agree to treat the Settlement Fund as being at all times a
“qualified settlement fund” within the meaning of Treas. Reg. § 1.468B-1. In addition, the Claims
Administrator shall timely make such elections as necessary or advisable to carry out the
provisions of this ¶ 2.3.1, including the “relation-back election” (as defined in Treas. Reg.
§ 1.468B-1) back to the earliest permitted date. Such elections shall be made in compliance with
the procedures and requirements contained in such regulations. It shall be the responsibility of the
Claims Administrator to timely and properly prepare and deliver the necessary documentation for
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signature by all necessary parties, and thereafter to cause the appropriate filing to occur.
2.3.2. For the purpose of § 1.468B of the Internal Revenue Code of 1986, as amended,
and the regulations promulgated thereunder, the “administrator” shall be the Claims Administrator.
The Claims Administrator shall timely and properly cause to be filed all informational and other
tax returns necessary or advisable with respect to the Settlement Fund (including, without
limitation, the returns described in Treas. Reg. § 1.468B-2(k)). Such returns (as well as the election
described in ¶ 2.3.1 hereof) shall be consistent with this ¶ 2.3.2 and in all events shall reflect that
all Taxes (including any estimated Taxes, interest, or penalties) on the income earned by the
Settlement Fund shall be paid out of the Settlement Fund as provided in ¶ 2.3.3 hereof.
2.3.3. All (i) taxes (including any interest, penalties, or estimated taxes) arising with
respect to the income earned by the Settlement Fund, including any taxes or tax detriments that
may be imposed upon Defendants or their counsel with respect to any income earned by the
Settlement Fund for any period during which the Settlement Fund does not qualify as a “qualified
settlement fund” for federal or state income tax purposes (“Taxes”), and (ii) expenses and costs
incurred in connection with the operation and implementation of this ¶ 2.3 (including, without
limitation, expenses of tax attorneys and/or accountants, mailing and distribution costs, and
expenses relating to filing (or failing to file) the returns described in this ¶ 2.3) (“Tax Expenses”),
shall be paid out of the Settlement Fund; in no event shall Defendants, their respective Related
Parties, or their counsel have any liability or responsibility for Taxes or Tax Expenses. Further,
Taxes and Tax Expenses shall be treated as, and considered to be, a cost of administration of the
Settlement Fund and shall be timely paid by the Claims Administrator out of the Settlement Fund
without prior order from the Court and the Claims Administrator shall be obligated
(notwithstanding anything herein to the contrary) to withhold from distribution to Authorized
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STIPULATION OF SETTLEMENT 18
Claimants any funds necessary to pay such amounts, including the establishment of adequate
reserves for any Taxes and Tax Expenses (as well as any amounts that may be required to be
withheld under Treas. Reg. § 1.468B-2(l)(2)). The Settling Parties agree to cooperate with the
Claims Administrator, each other, and their tax attorneys and accountants to the extent reasonably
necessary to carry out the provisions of this ¶ 2.3.
2.3.4. This is not a claims-made settlement. As of the Effective Date, Defendants, their
insurance carriers, and/or such other persons or entities funding the Settlement on the Defendants’
behalf, shall not have any right to the return of the Settlement Fund or any portion thereof for any
reason.
2.4. Termination or Cancellation of Settlement
2.4.1. In the event that the Settlement is not approved, is terminated, is canceled, or fails
to become effective for any reason, the provisions of ¶¶ 8.3, 8.4, 8.5 and/or 8.6 herein shall be
followed.
3. CLASS CERTIFICATION
3.1. The Settling Parties agree that certification of the Class, for settlement purposes
only, is appropriate in the Action. For purposes of this Settlement only, the Class comprises all
Class Members, as defined in ¶ 1.6 above. Nothing in this Stipulation shall serve, either directly
or indirectly, as evidence or support for certification of a class other than for settlement purposes,
and the Settling Parties intend that the provisions herein concerning certification of the Class shall
have no effect whatsoever in the event the Settlement does not become Final, as defined in ¶ 1.15
above.
3.2. The Settling Parties therefore stipulate to: (i) certification, for settlement purposes
only, of the Class (as defined above), pursuant to Rules 23(a) and (b)(3) of the Federal Rules of
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STIPULATION OF SETTLEMENT 19
Civil Procedure; (ii) appointment of Lead Plaintiffs as the class representatives; and
(iii) appointment of Lead Counsel as class counsel. Certification of the Class shall be binding only
with respect to the Settlement of the Action and only if the Order and Final Judgment contemplated
by this Stipulation becomes Final and the Effective Date occurs.
4. PRELIMINARY APPROVAL ORDER AND FINAL APPROVAL
HEARING
4.1. Promptly after execution of this Stipulation, the Settling Parties shall submit this
Stipulation together with its Exhibits to the Court and shall jointly apply for entry of the
Preliminary Approval Order substantially in the form of Exhibit A attached hereto. During the
period from execution of this Stipulation to the Effective Date, which shall include the period
following entry of the Preliminary Approval Order, each of the Settling Parties, and their
respective heirs, executors, administrators, successors, and assigns and all persons acting in
concert with any such person or entity, agree not to institute, maintain, or prosecute any or all
Settled Claims against any or all of the Defendants.
4.2. The Settling Parties shall request, inter alia, the preliminary approval of the
Settlement set forth in this Stipulation and approval for the mailing of the “Notice” to Class
Members, substantially in the form of Exhibit B attached hereto, and publication of the Summary
Notice, substantially in the form of Exhibit D attached hereto. The Notice shall include the general
terms of the Settlement set forth in this Stipulation, the proposed allocation of the Settlement Fund,
the general terms of the Fee and Expense Application by Lead Counsel and the date of the Final
Approval Hearing. Lead Counsel will be responsible for providing the Notice to the Class. Any
Notice and Administration Expenses shall be paid from the Settlement Fund as provided in ¶¶
2.2.5 and 6.2 hereof.
4.3. The Settling Parties shall request that, after notice is given, the Court hold a Final
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STIPULATION OF SETTLEMENT 20
Approval Hearing and approve the Settlement of the Action as set forth herein. Lead Counsel will
also request that the Court approve the Fee and Expense Application.
5. RELEASES
5.1. The obligations incurred pursuant to this Stipulation shall be in full and final
disposition of this Action and any and all Released Claims. By operation of the Judgment, upon
the Effective Date of this Settlement, each and all of the Lead Plaintiffs and Class Members, on
behalf of themselves and their respective heirs, executors, administrators, successors, and assigns
and all persons acting in concert with any such person shall, with respect to each and every
Released Claim, waive, release, forever discharge, and dismiss, with prejudice, and agree not to
institute, maintain, or prosecute any or all Released Claims against any or all of the Released
Persons, and shall be permanently and finally enjoined, without the necessity of posting a bond,
from commencing or prosecuting any actions or other proceedings asserting any of the Released
Claims either directly, indirectly, or representatively against any of the Released Persons or
Defense Counsel herein. This injunction expressly extends to all claims covered by this Stipulation
and all Releasors defined herein.
5.2. The Proof of Claim and Release to be executed by Lead Plaintiffs and Class
Members shall release all Released Claims (including Unknown Claims) against the Released
Persons and shall be substantially in the form contained in Exhibit C attached hereto.
5.3. Upon the Effective Date, each of the Released Persons shall be deemed to have,
and by operation of the Judgment shall have, fully, finally, and forever released, relinquished and
discharged Lead Plaintiffs, each and all of the Class Members, and their attorneys (including,
without limitation, Lead Counsel), employees, heirs, successors, and assigns from all claims
(including, without limitation, Unknown Claims) arising out of, relating to, or in connection with,
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STIPULATION OF SETTLEMENT 21
the institution, prosecution, assertion, settlement, or resolution of the Action. Claims to enforce
the Settlement are not released.
5.4. Upon the Effective Date, Lead Plaintiffs and all Class Members and anyone
claiming through or on behalf of any of them, are forever barred and enjoined from commencing,
instituting, or continuing to prosecute any action or proceeding in any court of law or equity,
arbitration tribunal, administrative forum, or other forum of any kind, asserting any of the Released
Claims against any of the Released Persons, and each of them.
6. ADMINISTRATION AND CALCULATION OF CLAIMS, FINAL
AWARDS, AND SUPERVISION AND DISTRIBUTION OF THE
SETTLEMENT FUND
6.1. The Claims Administrator, subject to such supervision and direction from the Court
or Lead Counsel as may be necessary or as circumstances may require, shall administer and
calculate the claims submitted by Class Members and shall oversee distribution of the Net
Settlement Fund to Authorized Claimants. Except for the obligation to pay the Settlement Amount
and, as set forth in ¶ 2.2.6 above, to provide reasonable cooperation with respect to the
identification of putative Class Members from Blount’s shareholder transfer records (subject to
¶ 2.2.6), Defendants shall have no liability, obligation, or responsibility for the administration of
the Escrow Account or the Settlement, for the allocation, disbursement, and payment of the
Settlement Fund or Net Settlement Fund, or for the reviewing, challenging, or determination of
claims of putative Class Members. Lead Counsel and the Claims Administrator shall have the
right, but not the obligation, to waive what they deem to be formal or technical defects in any
Proofs of Claim submitted in the interest of achieving substantial justice.
6.2. At the times set forth and in accordance with this Stipulation, the Settlement Fund
shall be applied: (a) to pay all Notice and Administration Expenses; (b) to pay the Taxes and Tax
Expenses described in ¶ 2.3 hereof; (c) to pay Lead Plaintiffs’ expenses, including any lost wages,
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STIPULATION OF SETTLEMENT 22
as provided for by 15 U.S.C. §78u-4(a)(4), and Lead Plaintiffs’ attorneys’ fees and expenses (the
“Fee and Expense Award”); and (d) to distribute the balance of the Settlement Fund (the “Net
Settlement Fund”) to Authorized Claimants as allowed by this Stipulation or the Court.
6.3. Upon the Effective Date and thereafter, and in accordance with the terms of this
Stipulation or such further approval and further order(s) of the Court as may be necessary or as
circumstances may require, the Claims Administrator, subject to the Court’s jurisdiction, shall
distribute the Net Settlement Fund to Authorized Claimants, subject to and in accordance with the
following:
6.3.1. Within ninety (90) calendar days after the mailing of the Notice or such other time
as may be set by the Court, each Person claiming to be an Authorized Claimant shall be required
to submit to the Claims Administrator a completed Proof of Claim and Release, substantially in
the form of Exhibit C attached hereto, signed under penalty of perjury and supported by such
documents as are specified in the Proof of Claim and Release and as are reasonably available to
such Person. The Claims Administrator shall retain copies of the Proofs of Claim referred to in
this ¶ 6.3.1 for at least one (1) year after the disbursement of the Net Settlement Fund by the Claims
Administrator and shall provide copies of individual Proofs of Claim to Defendants’ Counsel at
no expense on a case-by-case basis if requested to do so;
6.3.2. Except as otherwise ordered by the Court, any and all Class Members who fail to
timely submit a Proof of Claim and Release within such period, or such other period as may be
ordered by the Court, or otherwise allowed, shall be forever barred from receiving any payments
pursuant to this Stipulation and the Settlement set forth herein, but will in all other respects be
subject to and bound by the provisions of this Stipulation, the releases contained herein, and the
Judgment, and will be permanently barred and enjoined from bringing any action, claim, or other
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STIPULATION OF SETTLEMENT 23
proceeding of any kind against any Released Persons concerning any Released Claims.
Notwithstanding the foregoing, Lead Counsel shall have the discretion (but not the obligation) to
accept late-submitted claims for processing by the Claims Administrator so long as distribution of
the Net Settlement Fund is not materially delayed thereby;
6.3.3. Each Proof of Claim shall be submitted to and reviewed by the Claims
Administrator, under the supervision of Lead Counsel, who shall determine in accordance with
this Stipulation the extent, if any, to which each claim shall be allowed, subject to review by the
Court pursuant to ¶ 6.3.5 below;
6.3.4. Any Proof of Claim that does not meet the submission requirements may be
rejected. Prior to rejection of a Proof of Claim, the Claims Administrator shall notify, in a timely
fashion and in writing, the Claimant whose Proof of Claim it proposes to reject in whole or in part,
setting forth the reasons therefor, and shall indicate in such notice that the Claimant whose claim
is to be rejected has the opportunity to remedy curable deficiencies in the Proof of Claim submitted
if the Claimant so desires;
6.3.5. If any Claimant whose claim has been rejected in whole or in part desires to contest
such rejection, the Claimant must, within twenty (20) calendar days after the date of mailing of the
notice required in ¶ 6.3.4 above, serve upon the Claims Administrator a notice and statement of
reasons indicating the Claimant’s grounds for contesting the rejection along with any supporting
documentation, and requesting a review thereof by the Court, if so desired. If a dispute concerning
a claim cannot be otherwise resolved, Lead Counsel shall thereafter present the request for review
to the Court;
6.3.6. Following the Effective Date, the Claims Administrator shall distribute to each
Authorized Claimant his, her, or its pro rata share of the Net Settlement Fund; and
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STIPULATION OF SETTLEMENT 24
6.3.7. Defendants shall not have a reversionary interest in the Net Settlement Fund. If
there is any balance of the Net Settlement Fund remaining after six (6) months from the date of
the initial distribution of the Net Settlement Fund, Lead Counsel shall, if feasible, distribute such
remaining balance pro rata among Authorized Claimants who negotiated the checks sent to them.
These redistributions shall be repeated until the balance in the Net Settlement Fund is de minimis
(i.e., is insufficient to cover the cost of another distribution) and such remaining balance shall then
be donated to an appropriate non-profit organization designated by Lead Counsel.
6.4. Defendants and their respective Related Parties shall have no responsibility for,
interest in, or liability whatsoever with respect to, the distribution of the Settlement Fund, any
investment or distribution of the Settlement Fund, the determination, administration, or calculation
of claims, final awards, the timing, supervision, and distribution of the Settlement Fund, any
application for attorneys’ fees and expenses, the payment or withholding of Taxes, or any losses
incurred in connection therewith.
6.5. No Person shall have any claim against Lead Plaintiffs, Lead Counsel, Defendants,
Defense Counsel or the Claims Administrator, or their respective Related Parties, or other Person
designated by Lead Counsel based on the distributions made substantially in accordance with this
Stipulation and the Settlement contained herein or further order(s) of the Court. This does not
include any claim by any party for breach of this Stipulation.
6.6. It is understood and agreed by the Settling Parties that any allocation of the
Settlement Fund including, but not limited to, any adjustments to an Authorized Claimant’s claim
set forth therein, is not a part of or a condition to this Stipulation and the Settlement set forth herein,
and is to be considered by the Court separately from the Court’s consideration of the fairness,
reasonableness, and adequacy of the Settlement set forth in this Stipulation, and any order or
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STIPULATION OF SETTLEMENT 25
proceeding relating to the allocation of the Settlement Fund shall not operate to terminate or cancel
this Stipulation or the releases set forth herein, or affect or delay the finality of the Court’s
Judgment approving this Stipulation and the releases and Settlement set forth herein, or any other
orders entered pursuant to this Stipulation.
7. ATTORNEYS’ FEES AND EXPENSES
7.1. The procedure for and the allowance by the Court of any applications by Lead
Counsel for attorneys’ fees and expenses, or Lead Plaintiffs’ expenses (including lost wages) paid
pursuant to 15 U.S.C. § 78u-4(a)(4), to be paid out of the Settlement Fund, are not part of or a
condition to the Settlement set forth in this Stipulation, and are to be considered by the Court
separately from the Court’s consideration of the fairness, reasonableness, and adequacy of the
Settlement set forth in this Stipulation. Any order or proceeding relating to the Fee and Expense
Application, or Lead Plaintiffs’ expense application pursuant to 15 U.S.C. § 78u-4(a)(4), or any
appeal from any order relating thereto or reversal or modification of either such application, shall
not operate to terminate or cancel this Stipulation or the releases set forth herein, or affect or delay
the finality of the Judgment approving this Stipulation and the releases and Settlement of the
Action set forth herein.
7.2. Lead Counsel may submit an application or applications (the “Fee and Expense
Application”) for distributions from the Settlement Fund for: (a) an award of attorneys’ fees;
(b) the payment of reasonable expenses, including Lead Plaintiffs’ expenses (including lost wages)
paid pursuant to 15 U.S.C. § 78u-4(a)(4); plus (c) the cost of fees of experts or consultants incurred
in connection with prosecuting the Action. Lead Counsel reserve the right to make additional
applications to the Court from the Settlement Fund for fees and expenses incurred.
7.3. The Fee and Expense Award shall be paid to Lead Counsel from the Settlement
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STIPULATION OF SETTLEMENT 26
Fund, as ordered, immediately after the Court executes an order awarding such fees and expenses.
Lead Counsel shall thereafter allocate the attorneys’ fees among plaintiffs’ counsel in accordance
with any agreement related thereto. In no event shall Defendants and their respective Related
Parties have responsibility for, interest in, or liability whatsoever with respect to such allocation
or distribution. In the event that the Effective Date does not occur, or either the Judgment or the
order making the Fee and Expense Award is reversed or modified by final non-appealable order,
or this Stipulation is canceled or terminated for any other reason, and in the event that the Fee and
Expense Award has been paid to any extent, then, within ten (10) calendar days from receiving
notice from Defense Counsel or from a court of appropriate jurisdiction, Lead Counsel and any
other plaintiff’s counsel receiving fees and expenses will refund to the Settlement Fund such fees
and expenses previously paid to Lead Counsel or any other plaintiff’s counsel from the Settlement
Fund in an amount consistent with such reversal or modification, together with interest on that
amount at a rate commensurate with that earned on the Settlement Fund during the intervening
period. Any refunds required pursuant to this paragraph shall be the obligation of each plaintiff’s
counsel receiving fees or expenses (to the extent of such amounts received) to make appropriate
refunds or repayments to the Settlement Fund. Each plaintiff’s counsel, as a condition of receiving
such fees, expenses and/or costs on behalf of itself and each partner and/or shareholder of it, agrees
that its law firm and its partners and/or shareholders are subject to the jurisdiction of the Court for
the purpose of enforcing the provisions of this paragraph.
7.4. Lead Plaintiffs may submit an application for payment for their time and expenses
incurred in the prosecution of the Action.
7.5. Defendants and their respective Related Parties shall have no responsibility for or
liability with respect to any allocation among plaintiffs’ counsel and/or any other Person who may
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STIPULATION OF SETTLEMENT 27
assert some claim thereto, of any attorneys’ fee and expense award that the Court may make in the
Action.
8. CONDITIONS AND EFFECT OF SETTLEMENT AND EFFECT OF
DISAPPROVAL, CANCELLATION, OR TERMINATION OF
SETTLEMENT
8.1. The Effective Date of this Stipulation shall be conditioned on the occurrence of all
the following events:
(a) Execution of this Stipulation and such other documents as may be required
to obtain final Court approval of the Stipulation in a form satisfactory to the Settling Parties;
(b) the Court has entered the Preliminary Approval Order, as set forth in ¶ 4.1
hereof;
(c) the Class has been certified, as provided in ¶¶ 3.1 and 3.2 hereof;
(d) Defendants have made the contribution to the Settlement Fund as set forth
in ¶ 2.2.1 hereof;
(e) the Court has entered the Judgment substantially in the form of Exhibit E
attached hereto; and
(f) the Judgment has become Final, as set forth in ¶ 1.15 hereof.
8.2. Upon the occurrence of all of the events referenced in ¶ 8.1 hereof, any and all
remaining interest or right of Defendants in or to the Settlement Fund, if any, shall, subject to ¶ 8.8,
be absolutely and forever extinguished. If all of the conditions specified in ¶ 8.1 hereof are not
met, then this Stipulation shall be canceled and terminated subject to ¶¶ 8.3, 8.4 and/or 8.5 hereof
unless Lead Counsel and counsel for Defendants mutually agree in writing to proceed with this
Stipulation.
8.3. In the event this Stipulation shall terminate, be canceled, or shall not become
effective for any reason, within ten (10) days after written notification of such event is sent by
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STIPULATION OF SETTLEMENT 28
counsel for Defendants or Lead Counsel to the Escrow Agent, the Settlement Fund (including
accrued interest), less expenses which have either been incurred or disbursed pursuant to ¶¶ 2.2.3
and 2.2.5 hereof, shall be refunded and transferred by the Escrow Agent pursuant to written
instructions from Defense Counsel. The Escrow Agreement will contain such provisions as are
necessary or appropriate to effectuate this Paragraph, including but not limited to a provision
stating that the return of the Settlement Amount required in this Paragraph shall not require any
approval from Lead Counsel. At the request of Defense Counsel, the Escrow Agent or its designee
shall apply for any tax refund owed on the Settlement Fund and pay the proceeds, after deduction
of any fees or expenses incurred in connection with such application(s) for refund, at the written
direction of Defense Counsel.
8.4. In the event that the Court declines to approve this Stipulation or the Settlement set
forth in this Stipulation is terminated or fails to become effective in accordance with its terms, the
Settling Parties shall be restored to their respective positions in the Action as of April 8, 2019, the
day prior to the execution of this Stipulation. In such event, the terms and provisions of this
Stipulation, with the exception of ¶¶ 1.1-1.40, 2.2.2-2.2.6, 8.3-8.6, and 10.1 hereof, shall have no
further force and effect with respect to the Settling Parties and shall not be used in the Action or
in any other proceeding for any purpose, and any judgment or order entered by the Court in
accordance with the terms of this Stipulation shall be treated as vacated, nunc pro tunc.
8.5. In the event the Settlement is terminated or any of the requirements of the
“Effective Date” specified in ¶ 8.1 are, for any reason, not satisfied, then the Settlement and this
Stipulation shall be null and void, without prejudice, and none of its terms shall be effective or
enforceable except that neither Lead Plaintiffs nor any other putative Class Member may use the
fact of execution of this Stipulation as a basis to argue that Defendants have in any way
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STIPULATION OF SETTLEMENT 29
circumscribed, limited, or waived their ability to oppose, for any reason, certification of a class;
and the fact and terms of the Settlement, this Stipulation, and all settlement discussions shall not
be admissible in any trial of this Action or any other proceeding and shall not be used by Lead
Plaintiffs against or to the prejudice of the Defendants or by the Defendants against or to the
prejudice of Lead Plaintiffs in any court filings, depositions, at trial, or otherwise.
8.6. An order of the Court concerning the allocation of the Settlement Fund or the
amount of any attorneys’ fees, costs, expenses, and interest awarded by the Court to Lead Plaintiffs
or any of plaintiff’s counsel, or a modification or reversal on appeal of any such order of the Court,
shall not constitute grounds for cancellation or termination of this Stipulation.
8.7. If the Effective Date does not occur, or if this Stipulation is terminated pursuant to
its terms, neither Lead Plaintiffs nor any of their counsel shall have any obligation to repay any
amounts incurred or disbursed pursuant to ¶¶ 2.2.3 or 2.2.5 hereof.
8.8. If (a) a case is commenced with respect to any Defendant under Title 11 of the
United States Code (Bankruptcy), or a trustee, receiver, or conservator is appointed under any
similar law, (b) a final order of a court of competent jurisdiction is entered determining the transfer
of the Settlement Fund, or a material portion thereof, by or on behalf of such Defendant to be a
preference, voidable transfer, fraudulent transfer or similar transaction, and (c) any portion of the
Settlement Fund is required to be returned and is returned to such Defendant (or such Defendant’s
estate), then, at Lead Plaintiffs’ option, as to such Defendant, the releases given and judgment
entered in favor of such Defendant pursuant to this Stipulation shall be null and void. Alternatively,
Lead Plaintiffs may terminate the Settlement, return the Settlement Fund (net of amounts paid
pursuant to ¶¶ 2.2.3 and 2.2.5) pursuant to instructions from Defense Counsel and the releases
given, and the judgment entered as to all Defendants shall be null and void.
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9. REQUESTS FOR EXCLUSION OR OBJECTIONS
9.1. Any Class Member requesting exclusion from the Class shall be required to provide
the following information to the Claims Administrator: (a) name; (b) address; (c) telephone
number; (d) amount of Blount common stock held on the Record Date; and (e) a statement that the
Person wishes to be excluded from the Class. Unless otherwise ordered by the Court, any Class
Member who does not submit a timely written request for exclusion as provided by this ¶ 9.1 shall
be bound by the Settlement in this Stipulation. The parties shall request that the deadline for
submitting requests for exclusion be at least twenty-one (21) calendar days prior to the Final
Approval Hearing.
9.2. If a request for exclusion is untimely, or is invalid because it does not otherwise
comply with the criteria or contain all of the information specified in the Preliminary Approval
Order and in the Notice, then it shall be void and of no effect, and that person or entity shall remain
part of the Class in this Action and shall be bound by all of the terms of this Stipulation and
Settlement, including the terms of the Judgment to be entered in the Action and the releases
provided for herein, and will be barred and enjoined from bringing any action against the
Defendants concerning the Settled Claims. Any disputes regarding whether or not a request for
exclusion is timely and valid, and thus effective, shall be resolved by the Court.
9.3. The Claims Administrator shall electronically send copies of all requests for
exclusion in PDF format (or such other format as shall be mutually agreed by the Settling Parties)
to Defense Counsel and to Lead Counsel expeditiously (but not more than five (5) days) after the
Claims Administrator receives such a request. As part of the motion papers in support of the
Settlement of the Action, Lead Counsel will cause to be provided a list of all the persons who have
requested exclusion from the Class.
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STIPULATION OF SETTLEMENT 31
10. NO ADMISSION OF WRONGDOING
10.1. This Stipulation, whether or not consummated, and any proceedings taken pursuant
to it:
(a) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of, or construed as or deemed to be evidence of, any presumption, concession, or
admission by any Defendant or Lead Plaintiff with respect to the truth of any fact alleged by the
Plaintiffs or the validity of any claim that has been or could have been asserted in the Action or in
any litigation, or the deficiency of any defense that has been or could have been asserted in the
Action or in any litigation, or of any liability, negligence, fault, or wrongdoing of any Defendant;
(b) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of a presumption, concession, or admission of any fault, misrepresentation, or omission
with respect to any statement or written document approved or made by any Defendant;
(c) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of a presumption, concession, or admission with respect to any liability, negligence, fault,
or wrongdoing, or in any way referred to for any other reason as against any Defendant, in any
other civil, criminal, or administrative action or proceeding, other than such proceedings as may
be necessary to effectuate the provisions of this Stipulation; provided, however, that if this
Stipulation is approved by the Court, the Settling Parties may refer to it to effectuate the liability
protection granted them hereunder; and
(d) shall not be construed against any Defendant or Lead Plaintiff as an
admission or concession that the consideration to be given hereunder represents the amount which
could or would have been recovered after trial.
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STIPULATION OF SETTLEMENT 32
11. MISCELLANEOUS PROVISIONS
11.1. The Settling Parties (a) acknowledge that it is their intent to consummate this
agreement; and (b) agree to cooperate to the extent reasonably necessary to effectuate and
implement all terms and conditions of this Stipulation and to exercise their best efforts to
accomplish the foregoing terms and conditions of this Stipulation.
11.2. The Settling Parties intend this Settlement to be a final and complete resolution of
all disputes between them with respect to the Action. The Settlement compromises claims which
are contested and shall not be deemed an admission by any Settling Party as to the merits of any
allegations, claims, or defenses whatsoever. The Judgment will contain a finding that, during the
course of the Action, the parties and their respective counsel at all times complied with the
requirements of Federal Rule of Civil Procedure 11. The Settling Parties agree that the Settlement
Amount and the other terms of the Settlement were negotiated in good faith by the Settling Parties,
and reflect a settlement that was reached voluntarily after consultation with competent legal
counsel. The Settling Parties reserve their right to rebut, in a manner that such party determines to
be appropriate, any contention made in any public forum that the Action was brought or defended
in bad faith or without a reasonable basis.
11.3. This Stipulation supersedes the Stipulation of Settlement which the Settling Parties
executed on April 9, 2019.
11.4. Defendants may file this Stipulation and/or the Judgment in any action that may be
brought against them in order to support a defense or counterclaim based on principles of res
judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction, or any other
theory of claim preclusion or issue preclusion or similar defense or counterclaim.
11.5. In the event that any part of this Stipulation is found to be unlawful, void,
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STIPULATION OF SETTLEMENT 33
unconscionable, or against public policy by a court of competent jurisdiction, the remaining terms
and conditions of this Stipulation shall remain intact.
11.6. All agreements made and orders entered during the course of the Action relating to
the confidentiality of information shall survive this Stipulation, pursuant to their terms.
11.7. All of the Exhibits to this Stipulation are material and integral parts hereof and are
fully incorporated herein by this reference.
11.8. This Stipulation may be amended or modified only by a written instrument signed
by or on behalf of all Settling Parties or their respective successors-in-interest.
11.9. This Stipulation and the Exhibits attached hereto constitute the entire agreement
among the Settling Parties and no representations, warranties, or inducements have been made to
any party concerning this Stipulation or its Exhibits other than the representations, warranties, and
covenants contained and memorialized in such documents. Except as otherwise provided herein,
each party shall bear its own costs.
11.10. Lead Counsel, on behalf of the Class, are expressly authorized by Lead Plaintiffs
to take all appropriate action required or permitted to be taken by the Class pursuant to this
Stipulation to effectuate its terms and also are expressly authorized to enter into any modifications
or amendments to this Stipulation made pursuant to ¶ 11.8 on behalf of the Class which they deem
appropriate.
11.11. Each of Defendants warrants and represents that he, she, or it is not “insolvent”
within the meaning of 11 U.S.C. § 101(32) as of the time this Stipulation is executed and as of the
time any payments are transferred or made as required by this Stipulation.
11.12. This Stipulation may be executed in one or more counterparts, including by
signature transmitted by facsimile or email in pdf format. All executed counterparts and each of
Case 3:16-cv-00483-SI Document 145 Filed 04/23/19 Page 33 of 37
STIPULATION OF SETTLEMENT 34
them shall be deemed to be one and the same instrument. A complete set of executed counterparts
shall be filed with the Court.
11.13. This Stipulation shall be binding upon, and inure to the benefit of, the successors
and assigns of the Settling Parties and Members of the Class, any and all Released Persons and
any corporation, partnership, or other entity into or with which any party hereto may merge,
consolidate, or reorganize.
11.14. The Court shall retain jurisdiction with respect to implementation and enforcement
of the terms of this Stipulation, and all Settling Parties submit to the jurisdiction of the Court for
purposes of implementing and enforcing the Settlement embodied in this Stipulation.
11.15. This Stipulation and the Exhibits hereto shall be considered to have been
negotiated, executed, and delivered, and to be wholly performed, in the State of Oregon, and the
rights and obligations of the parties to this Stipulation shall be construed and enforced in
accordance with, and governed by, the internal, substantive laws of the State of Oregon without
giving effect to that state’s choice-of-law principles.
11.16. A waiver by one party of any breach of this Stipulation by any other party shall not
be deemed a waiver of any other prior or subsequent breach of this Stipulation.
11.17. This Stipulation shall not be construed more strictly against one party than another
merely by virtue of the fact that it, or any part of it, may have been prepared initially by counsel
for one of the Settling Parties, it being recognized that it is the result of arm’s-length negotiations
between the Settling Parties and all Settling Parties have contributed substantially and materially
to the preparation of this Stipulation.
11.18. All counsel and any other person executing this Stipulation and any of the exhibits
hereto, or any related settlement documents, warrant and represent that they have the full authority
Case 3:16-cv-00483-SI Document 145 Filed 04/23/19 Page 34 of 37
STIPULATION OF SETTLEMENT 35
to do so and that they have the authority to take appropriate action required or permitted to be
taken pursuant to this Stipulation to effectuate its terms.
IN WITNESS WHEREOF, the Settling Parties hereto have caused this Stipulation to be
executed, by their duly authorized attorneys, dated as of April 23, 2019.
JOHNSON FISTEL, LLP
s/ W. Scott Holleman
W. Scott Holleman (pro hac vice)
E-mail: [email protected]
99 Madison Avenue, 5th Floor
New York, New York 10016
Phone: (212) 802-1486
LEVI & KORSINSKY, LLP
_s/ Shannon L. Hopkins________________
Shannon L. Hopkins (pro hac vice)
E-mail: [email protected]
1111 Summer Street, Suite 403
Stamford, CT 06905
Phone: (203) 992-4523
Lead Counsel for Plaintiffs
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
E-mail: [email protected]
Aurelia Erickson, OSB #126170
E-mail: [email protected]
Kevin Kress, OSB #146003
E-mail: [email protected]
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Phone: (503) 223-7555
Liaison Counsel for Plaintiffs
Case 3:16-cv-00483-SI Document 145 Filed 04/23/19 Page 35 of 37
STIPULATION OF SETTLEMENT 36
MILLER NASH GRAHAM & DUNN LLP
s/ Joshua M. Sasaki
Joshua M. Sasaki, P.C., OSB No. 964182
E-mail: [email protected]
Ian Christy, OSB No. 160116
E-mail: [email protected]
3400 U.S. Bancorp Tower
111 S.W. Fifth Avenue
Portland, Oregon 97204
Phone: (503) 224-5858
Fax: (503) 224-0155
Attorneys for Defendants Blount International,
Inc., Robert E. Beasley, Jr., Ronald Cami,
Andrew C. Clarke, Nelda J. Connors, E. Daniel
James, Harold E. Layman, Max L. Lukens, and
Daniel J. Obringer
CRAVATH, SWAINE & MOORE LLP
s/ Gary A. Bornstein
Gary A. Bornstein (pro hac vice)
NY Bar No. 2916815
E-mail: [email protected]
825 Eighth Avenue
New York, New York 10019
Phone: (212) 474-1084
Fax: (212) 474-3700
Attorneys for Defendants Blount International,
Inc., Andrew C. Clarke, Nelda J. Connors, E.
Daniel James, and Harold E. Layman
Case 3:16-cv-00483-SI Document 145 Filed 04/23/19 Page 36 of 37
STIPULATION OF SETTLEMENT 37
DAVIS POLK & WARDWELL
s/ Lawrence Portnoy
Lawrence Portnoy (pro hac vice)
NY Bar No.: 2312650
E-mail: [email protected]
450 Lexington Avenue
New York, New York 10005
Phone: (212) 450-4874
Fax: (212) 450-5874
Attorneys for Defendants Robert E. Beasley,
Ronald Cami, Max L. Lukens, and Daniel J.
Obringer
STOEL RIVES LLP
s/ B. John Casey
B. John Casey, OSB No. 120025
E-mail: [email protected]
760 SW Ninth Avenue, Suite 3000
Portland, Oregon 97205
Phone: (503) 224-3380
Fax: (503) 220-2480
Attorneys for Defendants Joshua L. Collins and
David A. Willmott
KIRKLAND & ELLIS LLP
s/ Nathaniel J. Kritzer
Jay P. Lefkowitz (admitted pro hac vice)
E-Mail: [email protected]
Nathaniel J. Kritzer (admitted pro hac vice)
E-Mail: [email protected]
601 Lexington Avenue
New York, New York 10022
Phone: (212) 446-4800
Fax: (212) 446-4900
Attorneys for Defendants Joshua L. Collins
and David A. Willmott
Case 3:16-cv-00483-SI Document 145 Filed 04/23/19 Page 37 of 37
EXHIBIT A
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 1
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
Aurelia Erickson, OSB #126170
Kevin Kress, OSB #146003
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Tel. (503) 223-7555
Liaison Counsel for Plaintiffs
[Additional counsel listed on signature page.]
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, AND DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
[PROPOSED] ORDER
PRELIMINARILY APPROVING
SETTLEMENT AND PROVIDING
FOR NOTICE
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 1 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 2
WHEREAS, a stockholder class action is pending before the Court captioned Azar v.
Blount International, Inc., et al., Case No. 3:16-CV-00483-SI (the “Action”);
WHEREAS, the Court has received the Stipulation of Settlement dated as of April 23, 2019
(the “Stipulation”), that has been entered into by Lead Plaintiffs (on behalf of itself and each of
the Class Members) and Defendants, and the Court had reviewed the Stipulation and its attached
Exhibits;
WHEREAS, the Parties having made a joint application, pursuant to Federal Rule of Civil
Procedure 23(e), for an order preliminarily approving the Settlement of this Action, in accordance
with the Stipulation which, together with the Exhibits annexed thereto sets forth the terms and
conditions for the Settlement of the Action and for dismissal of the Action with prejudice upon the
terms and conditions set forth therein; and the Court having read and considered the Stipulation
and the Exhibits annexed thereto; and
WHEREAS, all terms and initial capitalization contained herein shall have the same
meanings as set forth in the Stipulation;
NOW, THEREFORE, IT IS HEREBY ORDERED:
1. After a preliminary review, the Settlement appears to be fair, reasonable, adequate,
and in the best interests of the Class. The Settlement: (a) resulted from extensive arm’s-length
negotiations; and (b) is sufficient to warrant (i) notice thereof as set forth below; and (ii) a full
hearing on the Settlement. Accordingly, the Court does hereby preliminarily approve the
Stipulation and the Settlement set forth therein, subject to further consideration at the Final
Approval Hearing described below.
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 2 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 3
2. Pursuant to Rules 23(a) and (b)(3) of the Federal Rules of Civil Procedure, and for
purposes of this Settlement only, the Action is hereby preliminarily certified as a class action on
behalf of all persons who held Blount common stock continuously from March 4, 2016, the record
date for voting on the Transaction, through April 12, 2016, when the Transaction was completed.
Excluded from the Class are Defendants, the Purchasers, the officers and directors of the Company
at all relevant times, members of the immediate families of the Individual Defendants and their
legal representatives, heirs, successors or assigns, and any entity in which Defendants have or had
a controlling interest, and any Person who timely and validly seeks exclusion from the Class.
3. The Court finds, for the purposes of the Settlement only, that the prerequisites for
a class action under Rules 23(a) and (b)(3) of the Federal Rules of Civil Procedure have been
satisfied in that: (a) the number of Class Members is so numerous that joinder of all members is
impracticable; (b) there are questions of law and fact common to the Class; (c) the claims of Lead
Plaintiffs are typical of the claims of the Class they seek to represent; (d) Lead Plaintiffs and Lead
Counsel have and will fairly and adequately represent the interests of the Class; (e) the questions
of law and fact common to the Members of the Class predominate over any questions affecting
only individual Class Members; and (f) a class action is superior to other available methods for the
fair and efficient adjudication of the controversy.
4. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, and for the purposes
of the Settlement only, Lead Plaintiffs are preliminarily certified as the class representatives and
Johnson Fistel, LLP and Levi & Korsinsky, LLP are preliminarily certified as Lead Counsel.
5. A hearing (the “Final Approval Hearing”) shall be held before this Court [no less
than ninety (90) calendar days after the Notice Date] on _______________, 2019,
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 3 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 4
at _________ __.m., at the Mark O. Hatfield United States Courthouse, 1000 Southwest Third
Avenue, Portland, OR 97204, to determine whether the proposed Settlement of the Action on the
terms and conditions provided for in the Stipulation is fair, just, reasonable and adequate to the
Class Members and should be approved by the Court; whether a Judgment as provided in ¶ 1.18
and ¶ 8.1 of the Stipulation should be entered herein; and to determine the amount of attorneys’
fees and expenses that should be awarded to Lead Plaintiffs’ counsel and the amount that Lead
Plaintiffs should be awarded for their expenses, including lost wages. The Court may continue or
adjourn the Final Approval Hearing without further notice to Class Members.
6. The Court approves, as to form and content, the Notice of Pendency and Proposed
Settlement of Class Action (the “Notice”), the Proof of Claim and Release form (the “Proof of
Claim and Release”), and Summary Notice for publication annexed as Exhibits B, C, and D,
respectively, to the Stipulation and finds that the mailing and distribution of the Notice and
publishing of the Summary Notice substantially in the manner and form set forth in ¶¶ 7-8 of this
Order meet the requirements of Federal Rule of Civil Procedure 23 and due process, and is the
best notice practicable under the circumstances and shall constitute due and sufficient notice to all
Persons entitled thereto.
7. The firm of Epiq Class Action & Claims Solutions, Inc. (“Claims Administrator”)
is hereby appointed to supervise and administer the notice procedure as well as the processing of
claims as more fully set forth below:
(a) The Claims Administrator shall make reasonable efforts to identify all Persons who are
Members of the Class, and not later than [fourteen (14) calendar days after the Court enters
this Order] ______________, 2019 (the “Notice Date”), the Claims Administrator shall
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 4 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 5
commence mailing copies of the Notice and the Proof of Claim and Release, substantially
in the forms annexed as Exhibits B and C to the Stipulation, to all Class Members who can
be identified with reasonable effort;
(b) Not later than [ten (10) calendar days after the Notice Date] _______________, 2019,
the Claims Administrator shall cause the Summary Notice, substantially in the form
annexed to the Stipulation as Exhibit D, to be published once in _______________ and
transmitted once over a national newswire service;
(c) Not later than the Notice Date, the Claims Administrator shall post the Stipulation and
all of its Exhibits on a case dedicated website, www.blountinternationalsettlement.com,
which will be set forth in the Notice; and
(d) At least seven (7) calendar days prior to the Final Approval Hearing, Lead Counsel
shall cause to be served on Defense Counsel and filed with the Court proof, by affidavit or
declaration, of such mailing and publishing.
8. Nominees who purchased the common stock of Blount for the beneficial ownership
of Class Members shall send the Notice and the Proof of Claim and Release to all beneficial owners
of such securities within ten (10) calendar days after receipt thereof, or send a list of the names
and addresses of such beneficial owners to the Claims Administrator within ten (10) calendar days
of receipt thereof, in which event the Claims Administrator shall promptly mail the Notice and
Proof of Claim and Release to such beneficial owners. Lead Counsel shall, if requested, reimburse
nominees solely for their reasonable costs incurred in providing notice to beneficial owners who
are Class Members out of the Settlement Fund, which expenses would not have been incurred
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 5 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 6
except for the sending of such notice, subject to further order of this Court with respect to any
dispute concerning such compensation.
9. All Class Members shall be bound by all determinations and judgments in the
Action concerning the Settlement, whether favorable or unfavorable to the Class.
10. Any Member of the Class may enter an appearance in the Action, at their own
expense, individually or through counsel of their own choice. If they do not enter an appearance,
they will be represented by Lead Counsel.
11. Class Members who wish to participate in the Settlement shall complete and submit
Proofs of Claim and Release in accordance with the instructions contained therein. Unless the
Court orders otherwise, all Proofs of Claim and Release must be submitted no later than ninety
(90) calendar days from the Notice Date. Any Class Member who does not timely submit a Proof
of Claim and Release within the time provided for shall be barred from sharing in the distribution
of the proceeds of the Net Settlement Fund, unless otherwise ordered by the Court, but shall in all
respects be bound by the release contained in the Stipulation and Judgment. Notwithstanding the
foregoing, Lead Counsel shall have the discretion (but not the obligation) to accept late submitted
claims for processing by the Claims Administrator so long as distribution of the Net Settlement
Fund is not materially delayed thereby.
12. Any Class Member may, upon request, be excluded from the Class. Any such
Person must submit to the Claims Administrator a request for exclusion (“Request for Exclusion”),
postmarked no later than [twenty-one (21) days prior to the Final Approval Hearing] __________,
2019. A Request for Exclusion must provide the following information to the Claims
Administrator: (a) name; (b) address; (c) telephone number; (d) amount of Blount common stock
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 6 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 7
held on the record date, March 4, 2016; and (e) a statement that the Person wishes to be excluded
from the Class. All Persons who submit valid and timely Requests for Exclusion in the manner set
forth in this paragraph shall have no rights under the Stipulation, shall not share in the distribution
of the Net Settlement Fund, and shall not be bound by the Stipulation or the Judgment entered in
the Action. Unless otherwise ordered by the Court, any Class Member who does not submit a valid
and timely written Request for Exclusion as provided by this paragraph shall be bound by the
Stipulation.
13. Any Member of the Class may appear and show cause if he, she, or it has any reason
why the proposed Settlement of the Action should or should not be approved as fair, reasonable,
and adequate, why the Judgment should or should not be entered thereon, or why Lead Counsel’s
request for an award of attorneys’ fees and expenses, including Lead Plaintiffs’ expenses, as
provided for by 15 U.S.C. §78u-4(a)(4) should or should not be awarded. However, any Class
Member seeking to object to the Settlement or to Lead Counsel’s request for an award of attorneys’
fees and expenses, including Lead Plaintiffs’ expenses, must file with the Court and serve on Lead
Counsel and Defense Counsel (as identified in the Notice) by hand delivery, U.S. mail, or similar
fashion, written objections and copies of any papers and briefs on or before ________, 2019
[twenty-one (21) calendar days before the Final Approval Hearing]. Any Class Member who fails
to object in a timely fashion and in the manner prescribed shall be deemed to have waived such
objection and shall be forever foreclosed from making any objection to any aspect of the
Settlement as set forth in the Stipulation, the allocation, the request for attorneys’ fees and
reimbursement of litigation expenses, or the request for a compensatory award to the Lead
Plaintiffs, unless otherwise ordered by the Court.
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 7 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 8
14. All funds held by the Escrow Agent shall be deemed and considered to be in
custodia legis of the Court and shall remain subject to the jurisdiction of the Court, until such time
as such funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court.
15. All papers in support of the Settlement and any application by Lead Counsel for an
award of attorneys’ fees or expenses, including Lead Plaintiffs’ request for payment of its expenses
as provided for by 15 U.S.C. §78u-4(a)(4), shall be filed and served on or before ________, 2019
[forty-five (45) calendar days before the Final Approval Hearing]. Any reply briefs and supporting
documents shall be filed and served on or before ____________, 2019 [fifteen (15) calendar days
prior to the Final Approval Hearing].
16. The Defendants and their respective Related Parties shall have no responsibility
for, interest in, or liability whatsoever with respect to, the distribution of the Settlement Fund, any
investment or distribution of the Settlement Fund, the determination, administration, or calculation
of claims, final awards, the timing, supervision and distribution of the Settlement Fund, any
application for attorneys’ fees and expenses, the payment or withholding of Taxes, or any losses
incurred in connection therewith.
17. At or after the Final Approval Hearing, the Court shall determine whether any
application for attorneys’ fees or expenses, and any application for an award of Lead Plaintiffs’
expenses, including lost wages pursuant to 15 U.S.C. §78u-4(a)(3)(4), shall be approved.
18. All reasonable expenses incurred in identifying and notifying Class Members, as
well as administering the Settlement Fund, shall be paid as set forth in the Stipulation. In the event
the Settlement is not approved by the Court, or otherwise fails to become effective, neither the
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 8 of 9
[PROPOSED] ORDER PRELIMINARILY APPROVING SETTLEMENT 9
Plaintiffs nor any of their counsel shall have any obligation to repay any amounts incurred or
properly disbursed pursuant to ¶¶ 2.2.3 or 2.2.5 of the Stipulation.
19. Neither the Stipulation, nor any of its terms or provisions, whether or not
consummated, nor any of the negotiations or proceedings connected with it, shall be offered or
received as evidence of, or construed as or deemed to be evidence of, any presumption, concession,
or admission by Defendants or their Related Parties or Lead Plaintiffs with respect to the truth of
any fact alleged by the Plaintiffs or the validity of any claim that has been or could have been
asserted in the Action or in any litigation, or the deficiency of any defense that has been or could
have been asserted in the Action or in any litigation, or of any liability, negligence, fault, or
wrongdoing of any Defendant.
20. The Court reserves the right to adjourn the date of the Final Approval Hearing
without further notice to the Members of the Class and retains jurisdiction to consider all further
applications arising out of or connected with the proposed Settlement. The Court may approve the
Settlement, with such modifications as may be agreed to by the Settling Parties, if appropriate,
without further notice to the Class.
IT IS SO ORDERED.
DATED: _____________________
THE HONORABLE MICHAEL H. SIMON
UNITED STATES DISTRICT JUDGE
Case 3:16-cv-00483-SI Document 145-1 Filed 04/23/19 Page 9 of 9
EXHIBIT B
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 1
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
Aurelia Erickson, OSB #126170
Kevin Kress, OSB #146003
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Tel. (503) 223-7555
Liaison Counsel for Plaintiffs
[Additional counsel listed on signature page.]
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, AND DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
NOTICE OF PENDENCY AND
PROPOSED SETTLEMENT OF
CLASS ACTION
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 1 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 2
IF YOU HELD BLOUNT INTERNATIONAL, INC. (“BLOUNT”) COMMON STOCK
CONTINUOUSLY FROM MARCH 4, 2016, THE RECORD DATE FOR VOTING ON THE
PROPOSED ACQUISITION OF BLOUNT BY AMERICAN SECURITIES LLC AND P2
CAPITAL PARTNERS LLC, THROUGH APRIL 12, 2016, THE DATE THE TRANSACTION
WAS COMPLETED, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION
SETTLEMENT. CERTAIN PERSONS ARE EXCLUDED FROM THE CLASS AS SET
FORTH BELOW.1
A federal court authorized this Notice. This is not a solicitation from a lawyer.
• The Settlement will provide $3,059,000.00 in cash to pay claims of all Class Members. For
an estimate of how much you could receive from this Settlement, see the discussion at
Question 9 of this Notice. The Settlement resolves a lawsuit claiming that Defendants
issued a materially false and misleading Proxy Statement (the “Proxy Statement”) in
violation of §14(a) and §20(a) of the Securities Exchange Act of 1934 (the “Exchange
Act”), 15 U.S.C. §78n(a) and §78t(a), in connection with the proposed acquisition of
Blount by American Securities LLC and P2 Capital Partners LLC. The Defendants deny
they did anything wrong. The Settlement avoids the costs and risks associated with
continued litigation (including the danger of no recovery), provides a monetary benefit to
the Class, and releases the Defendants from liability.
• The proposed Settlement should be compared to the risk of no recovery. The claims in this
case involve numerous complex legal and factual issues that would require extensive and
costly expert testimony. Among the many issues about which the parties do not agree are:
(1) whether any of the Defendants violated the securities laws or otherwise engaged in any
wrongdoing; and (2) the amount of damages (if any) that could be recovered at trial.
• For the past two and a half years, Lead Plaintiffs’ counsel have not received payment for
their work investigating the facts, prosecuting this Action, and negotiating the proposed
Settlement on behalf of Lead Plaintiffs and the Class. Lead Plaintiffs’ counsel will ask the
Court to award litigation expenses of no more than $400,000 from the Settlement Amount
and an award of attorneys’ fees of 33.3% of the Settlement Amount. Lead Counsel also
may apply for the reimbursement of Lead Plaintiffs’ expenses pursuant to 15 U.S.C. §78u-
4(a)(4).
• Your legal rights are affected whether you act or don’t act. Read this Notice carefully.
1 This Notice incorporates by reference the definitions in the Stipulation of Settlement dated as of
April 23, 2019 (“Stipulation”), and all capitalized terms used, but not defined herein, shall have
the same meanings as in the Stipulation. The Stipulation can be obtained at
www.blountinternationalsettlement.com.
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 2 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 3
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
Submit a Proof of Claim and Release
Form The only way to get a payment.
Go to a Hearing Ask to speak in Court about the fairness of the
Settlement
Do Nothing Get no payment. Give up your rights.
Exclude Yourself
Get no payment. This is the only option that
allows you to ever bring a lawsuit against
Defendants concerning the legal claims at
issue in this case.
Object to the Settlement and
Attorneys’ Fees and Expenses
Write to the court about why you don’t like
the Settlement or the requested attorneys’ fees
and expenses.
• The following deadlines apply to your rights and options in this Action:
Submit Claim: _________, 2019
Request Exclusion: _________, 2019
File Objection: _________, 2019
Court Hearing on Fairness of Settlement: _________, 2019
• The Court in charge of this case must decide whether to approve the Settlement. Payments
will be made if the Court approves the Settlement and, if there are any appeals, after appeals
are resolved. Please be patient.
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 3 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 4
Basic Information
Page __
1. Why did I receive this notice package?
2. What is this lawsuit about?
3. Why is this a class action?
4. Why is there a settlement?
Who Is in the Settlement?
Page __
5. How do I know if I am part of the Settlement?
6. What are the exceptions to being included?
7. I’m still not sure if I am included.
The Settlement Benefits – What You Get
Page __
8. What does the Settlement provide?
9. How much will my payment be?
How You Obtain a Payment – Submitting a Proof of Claim and Release
Page __
10. How will I obtain a payment?
11. When will I receive my payment?
12. What am I giving up to receive a payment or stay in the Class?
Excluding Yourself from the Settlement
Page __
13. How do I get out of the Class?
14. If I do not exclude myself, can I sue for the same thing later?
15. If I exclude myself, can I receive money from this Settlement?
The Lawyers Representing You
Page __
16. Do I have a lawyer in this case?
17. How will the lawyers be paid?
Objecting to the Settlement or Attorneys’ Fees and Expenses
Page __
18. How do I tell the Court that I do not like the Settlement or the amount of requested
attorneys’ fees and expenses?
19. What’s the difference between objecting and excluding?
The Court’s Fairness Hearing
Page __
WHAT THIS NOTICE CONTAINS
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 4 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 5
20. When and where will the Court decide whether to approve the Settlement?
21. Do I have to come to the hearing?
22. May I speak at the hearing?
If You Do Nothing
Page __
23. What happens if I do nothing at all?
Getting More Information
Page __
24. Are there more details about the Settlement?
25. How do I get more information?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 5 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 6
BASIC INFORMATION
You may have held shares of Blount common stock on the record date, March 4, 2016.
The Court directed that this Notice be sent to you because you have a right to know about a
proposed Settlement of a class action lawsuit, and about all of your options, before the Court
decides whether to approve the Settlement.
If the Court approves the Settlement, and after any objections or appeals are resolved, the Claims
Administrator appointed by the Court will make the payments that the Settlement allows.
This Notice explains the lawsuit, the Settlement, Class Members’ legal rights, what benefits are
available, who is eligible for them, and how to get them.
The Court in charge of the case is Judge Michael H. Simon of the United States District Court for
the District of Oregon, Portland Division (the “Court”), and the case is known as Azar v. Blount
International, Inc., et al., Case No. 3:16-CV-00483-SI.
The Action claims that the Proxy Statement disseminated to shareholders in connection with the
proposed acquisition of Blount by American Securities LLC and P2 Capital Partners LLC
contained materially false and misleading statements and failed to include information concerning
the Company’s long-range projections and revised projections in violation of §14(a) and §20(b) of
the Securities Exchange Act of 1934. All Defendants deny they or their Related Parties did
anything wrong or that Lead Plaintiffs or other Members of the Class suffered any damages.
In a class action, one or more people called plaintiffs (in this case Elia Azar and Dean Alfange,
who were appointed by the Court as Lead Plaintiffs) sue on behalf of people who have similar
claims, called the Class or Class Members. One court resolves the issues for all Class Members,
except for those who timely and validly exclude themselves from the Class.
The Court did not decide in favor of Lead Plaintiffs or the Defendants who are currently part of
the case. Instead, all parties agreed to a Settlement. By agreeing to a Settlement, the parties avoid
the cost and uncertainty of further litigation and a possible trial (including any appeals) and allow
eligible Class Members who submit valid claims to receive a payment. Lead Plaintiffs and their
attorneys believe the Settlement is in the best interests of the Class.
1. Why did I receive this notice package?
2. What is this lawsuit about?
3. Why is this a class action?
4. Why is there a settlement?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 6 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 7
WHO IS IN THE SETTLEMENT?
To see if you will receive money from this Settlement, you first have to determine if you are a
Class Member
The Class includes all persons who held Blount common stock continuously from March 4, 2016,
the record date for voting on the proposed acquisition of Blount by American Securities LLC and
P2 Capital Partners LLC, through April 12, 2016, when the Transaction was completed. Certain
persons are excluded from the Class, as described below.
You are not a Class Member if you are a Defendant, a Purchaser, an officer or director of Blount
at any relevant time, a member of the immediate family of an Individual Defendant or any such
person’s legal representative, heir, successor or assign, or any entity in which a Defendant has or
had a controlling interest. You are also not a Class Member if you sold your Blount stock after
March 4, 2016 and before April 12, 2016 or timely and validly request exclusion from the Class
pursuant to this Notice.
If you are still not sure if you are included, you can ask for free help. You can visit
www.blountinternationalsettlement.com for more information. You can also contact the attorneys
for Lead Plaintiffs, listed below:
W. Scott Holleman
Johnson Fistel, LLP
99 Madison Avenue, 5th Floor
New York, NY 10016
(212) 802-1486
Shannon L. Hopkins
Levi & Korsinsky, LLP
1111 Summer Street, Suite 403
Stamford, CT 06905
(203) 992-4523
5. How do I know if I am part of the Settlement?
6. What are the exceptions to being included?
7. I am still not sure if I am included.
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 7 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 8
THE SETTLEMENT BENEFITS – WHAT YOU GET
Defendants have agreed to pay $3,059,000.00 in cash. The balance of this fund after payment of
Court-approved attorneys’ fees and expenses, Lead Plaintiffs’ expenses, and the costs of claims
administration, including the costs of printing and mailing this Notice and the cost of publishing
newspaper notice (the “Net Settlement Fund”) will be divided among all eligible Class Members
who send in valid claim forms.
Your share of the fund will depend on the number of shares of Blount common stock represented
by valid claims made by Members of the Class and the amount of those claims and the number of
shares of Blount common stock you held on the record date. Assuming that all of the investors
(other than Defendants or other excluded Persons) who held Blount common stock on the record
date, March 4, 2016, and suffered damages therefrom participate in this Settlement, Lead
Plaintiffs’ counsel estimates that the estimated average distribution will be approximately $0.08
per share of Blount common stock before the deduction of Court-approved fees and expenses, as
described in Question 17 below (estimated to be approximately $0.04 per share), and the cost of
notice and claims administration. Historically, less than all eligible investors submit claims,
resulting in higher average distributions per share.
The Net Settlement Fund will be distributed to Class Members who submit valid, timely Proof of
Claim and Release forms (“Claimants”) on a pro rata basis. However, no distributions will be made
to Claimants who would otherwise receive a distribution of less than $10.00.
Payment shall be conclusive against all Claimants. No Person shall have any claim against Lead
Plaintiffs’ counsel, Lead Plaintiffs, the Claims Administrator, Defendants and their Related
Parties, Defense Counsel, or any Person designated by Lead Plaintiffs’ counsel based on
distributions made substantially in accordance with the Stipulation and the Settlement contained
therein, or further order(s) of the Court. No Class Member shall have any claim against any
Released Persons for any Released Claims. All Class Members who fail to complete and file a
valid and timely Proof of Claim and Release form shall be barred from participating in distributions
from the Net Settlement Fund (unless otherwise ordered by the Court), but otherwise shall be
bound by all of the terms of the Stipulation, including the terms of any judgment entered and the
releases given.
8. What does the settlement provide?
9. How much will my payment be?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 8 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 9
HOW YOU OBTAIN A PAYMENT – SUBMITTING CLAIM AND RELEASE FORM
To qualify for payment, you must be an eligible Class Member, send in a valid claim form, and
properly document your claim as requested in the claim form. A claim form is enclosed with this
Notice. You may also obtain a Proof of Claim and Release form at
www.blountinternationalsettlement.com. Read the instructions carefully, fill out the form, include
all the documents the form asks for, sign it, and mail or submit it online no later than _________,
2019. The claim form can be submitted online at www.blountinternationalsettlement.com.
The Court will hold a hearing on _________________, 2019 to decide whether to approve the
Settlement. If Judge Simon approves the Settlement, there may be appeals. It is always uncertain
how these appeals will be resolved, and resolving them can take time, perhaps several years.
Everyone who sends in a claim form will be informed of the determination with respect to their
claim. Please be patient.
10. How will I obtain a payment?
11. When will I receive my payment?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 9 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 10
EXCLUDING YOURSELF FROM THE SETTLEMENT
Unless you timely and validly exclude yourself, you are staying in the Class, and that means that
you cannot sue, continue to sue, or be part of any other lawsuit against the Released Persons about
the Released Claims in this case. It also means that all of the Court’s orders will apply to you and
legally bind you and you will release your claims in this case against the Released Persons. The
terms of the release are included in the enclosed claim form. You can maintain your own lawsuit
only if you exclude yourself from the Settlement.
To exclude yourself from the Settlement, you must send a letter by mail saying that you want to
be excluded from the class in Azar v. Blount International, Inc., et al., Case No. 3:16-CV-00483-
SI. You must provide the following information: (a) name; (b) address; (c) telephone number;
(d) amount of Blount common stock held on the record date, March 4, 2016; and (e) a statement
that you wish to be excluded from the Class. You must mail your exclusion request postmarked
no later than [twenty-one (21) days prior to the Final Approval Hearing] ____________, 2019 to:
Epiq Class Action & Claims Solutions, Inc.
PO Box 2312
Portland, OR 97208-2312
You cannot exclude yourself on the phone or by e-mail. If you ask to be excluded, you will not
receive any settlement payment, and you cannot object to the Settlement. You will not be legally
bound by anything that happens in this lawsuit.
No. Unless you timely and validly exclude yourself, you give up any right to sue for the Released
Claims in this Settlement. If you have a pending lawsuit against any of the Released Persons, speak
to your lawyer in that case immediately. Remember, the exclusion deadline is _______, 2019.
No. If you exclude yourself, do not send in a Proof of Claim and Release form. But you may be
able to sue, continue to sue, or be part of a different lawsuit against Defendants.
12. What am I giving up to receive a payment or stay in the Class?
13. How do I get out of the Class?
14. If I do not exclude myself, can I sue for the same thing later?
15. If I exclude myself, can I receive money from this Settlement?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 10 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 11
THE LAWYERS REPRESENTING YOU
Yes. The Court appointed Johnson Fistel, LLP and Levi & Korsinsky, LLP to lead the litigation,
which the plaintiffs brought on behalf of themselves and all other Class Members. These lawyers
are called Lead Counsel. You will not be charged directly for these lawyers. If you want to be
represented by your own lawyer, you may hire one at your own expense.
In the two years that this Action has been pending, Lead Counsel have not been paid for their
services on behalf of Lead Plaintiffs and the Class, nor for their substantial expenses. The fee
requested is to compensate Lead Counsel for their work investigating the facts, litigating the case
over the past two years, and negotiating the Settlement.
Lead Plaintiffs’ counsel will ask the Court to award litigation expenses of no more than $400,000
and a payment of 33.3% of the Settlement Amount for attorneys’ fees. The fee requested is well
within the range of fees awarded to class counsel in similar cases. Lead Counsel may also seek the
Court’s approval to pay Lead Plaintiffs reasonable costs and expenses directly relating to the
representation of the Class. The Court may award less than these amounts.
16. Do I have a lawyer in this case?
17. How will the lawyers be paid?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 11 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 12
OBJECTING TO THE SETTLEMENT OR ANY REQUEST
FOR THE PAYMENT OF ATTORNEYS’ FEES AND EXPENSES
You can tell the Court that you do not agree with the Settlement or the request for fees and
expenses or some part of these matters.
If you are a Class Member, you can object to the Settlement or the request for fees and expenses
if you do not like any part of these matters. You can state the reasons why you think the Court
should not approve any of the relief sought. The Court will consider your views. To object, you
must send a letter saying that you object to the Settlement in Azar v. Blount International, Inc.,
Case No. 3:16-CV-00483-SI. Be sure to include your name, address, telephone number, your
signature, the number of shares of Blount common stock you held on the record date, March 4,
2016, and the reason(s) why you object to the Settlement or the request for fees and expenses.
Mail the objection to the Court, Lead Counsel, and Defense Counsel in time for it to be received
no later than ______________, 2019:
COURT LEAD COUNSEL DEFENSE COUNSEL
Clerk of the Court
U.S. District Court for the
District of Oregon,
Portland Division
Mark O. Hatfield
United States Courthouse
1000 Southwest Third Ave.
Portland, OR 97204
W. Scott Holleman
Johnson Fistel LLP
99 Madison Avenue, 5th Fl.
New York, NY 10016
Gary Bornstein
Cravath, Swaine &
Moore LLP
825 Eighth Avenue
New York, NY 10019
Objecting is simply telling the Court that you do not like something about the Settlement or the
fee and expense request. You can object only if you stay in the Class.
Excluding yourself is telling the Court that you do not want to be paid and do not want to release
any claims. If you exclude yourself, you cannot object to the Settlement because it does not affect
you.
19. What is the difference between objecting and excluding?
18. How do I tell the Court that I do not like the Settlement or the amount of requested
attorneys’ fees and expenses?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 12 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 13
THE COURT’S FAIRNESS HEARING
The Court will hold a hearing to decide whether to approve the Settlement. You may attend and
you may ask to speak, but you do not have to.
The Court will hold a fairness hearing at __:__ __.m., on ____________, 2019, before the
Honorable Michael H. Simon at the U.S. District Court for the District of Oregon, Portland
Division, Mark O. Hatfield United States Courthouse, 1000 Southwest Third Avenue, Portland,
Oregon 97204-2944. At this hearing, the Court will consider whether the Settlement is fair,
reasonable, and adequate. If there are objections, the Court will consider them. Judge Simon will
listen to people who have asked to speak at the hearing. The Court will also consider whether to
approve the fee and expense requests. The Court may decide the issues at the hearing or take them
under consideration. We do not know how long these decisions will take.
No. Lead Counsel will answer questions Judge Simon may have. But, you are welcome to come
at your own expense. If you send an objection, you do not have to come to Court to talk about it.
As long as you submitted your written objection on time, the Court will consider it. You may
also pay your own lawyer to attend, but it is not necessary.
You may ask the Court for permission to speak at the fairness hearing. To do so, you must send a
letter saying that it is your intention to appear in Azar v. Blount International, Inc., Case No. 3:16-
CV-00483-SI. Be sure to include your name, address, telephone number, the number of shares of
Blount common stock you held from the record date, March 4, 2016, through the completion of
the Transaction, April 12, 2016, and your signature. Your notice of intention to appear must be
received no later than _________, 2019, by the Clerk of the Court, Lead Counsel, and Defense
Counsel, at the addresses listed above in Question 18.
You cannot speak at the hearing if you exclude yourself from the Class.
20. When and where will the court decide whether to approve the Settlement?
21. Do I have to come to the hearing?
22. May I speak at the hearing?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 13 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 14
IF YOU DO NOTHING
If you do nothing, you will not receive any money from this Settlement. In addition, unless you
exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any
other lawsuit about the Released Claims in this case.
23. What happens if I do nothing at all?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 14 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 15
GETTING MORE INFORMATION
This Notice summarizes the proposed Settlement. More details are in the Stipulation dated as of
April 23, 2019. You can obtain a copy of the Stipulation by writing to Lead Plaintiffs’ counsel—
W. Scott Holleman, Johnson Fistel, LLP, 99 Madison Avenue, 5th Floor, New York, NY 10016,
or Shannon L. Hopkins, Levi & Korsinsky, LLP, 1111 Summer Street, Suite 403, Stamford, CT
06905—or from the Clerk’s office at the United States District Court for the District of Oregon,
Portland Division, Mark O. Hatfield United States Courthouse, 1000 Southwest Third Avenue,
Portland, Oregon 97204, during regular business hours. The Stipulation may also be downloaded
at www.blountinternationalsettlement.com.
You can visit www.blountinternationalsettlement.com for more information. You can also contact
the attorneys for Lead Plaintiffs, listed below:
W. Scott Holleman
Johnson Fistel, LLP
99 Madison Avenue, 5th Floor
New York, NY 10016
(212) 802-1486
Shannon L. Hopkins
Levi & Korsinsky, LLP
1111 Summer Street, Suite 403
Stamford, CT 06905
(203) 992-4523
24. Are there more details about the Settlement?
25. How do I get more information?
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 15 of 16
[PROPOSED] NOTICE OF PENDENCY AND PROPOSED SETTLEMENT 16
SPECIAL NOTICE TO NOMINEES
The Court has ordered that if you held any Blount common stock at any point in time from
March 4, 2016 through April 12, 2016 as nominee for a beneficial owner, then, within ten (10)
calendar days after you receive this Notice, you must either: (1) send a copy of this Notice by first
class mail to all such Persons; or (2) provide a list of the names and addresses of such Persons to
the Claims Administrator:
Epiq Class Action & Claims Solutions, Inc.
PO Box 2312
Portland, OR 97208-2312
If you choose to mail the Notice and Proof of Claim and Release yourself, you may obtain from
the Claims Administrator (without cost to you) as many additional copies of these documents as
you will need to complete the mailing.
Regardless of whether you choose to complete the mailing yourself or elect to have the mailing
performed for you, you may obtain reimbursement for or advancement of reasonable
administrative costs actually incurred or expected to be incurred in connection with forwarding the
Notice and which would not have been incurred but for the obligation to forward the Notice, upon
submission of appropriate documentation to the Claims Administrator.
DO NOT TELEPHONE THE COURT REGARDING THIS NOTICE
DATED: _____________ BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
PORTLAND DIVISION
Case 3:16-cv-00483-SI Document 145-2 Filed 04/23/19 Page 16 of 16
EXHIBIT C
PROOF OF CLAIM 1
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
Aurelia Erickson, OSB #126170
Kevin Kress, OSB #146003
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Tel. (503) 223-7555
Liaison Counsel for Plaintiffs
[Additional counsel listed on signature page.]
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, AND DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
PROOF OF CLAIM AND RELEASE
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 1 of 11
PROOF OF CLAIM 2
I. GENERAL INSTRUCTIONS
1. To recover as a Class Member based on your claims in the action entitled Azar v.
Blount International, Inc., et al., Case No. 3:16-CV-00483-SI (the “Action”), you must complete
and, on page ___ hereof, sign this Proof of Claim and Release. If you fail to file a properly
addressed (as set forth in ¶ 3 below) Proof of Claim and Release, your claim may be rejected and
you may be precluded from any recovery from the Net Settlement Fund created in connection with
the proposed settlement of the Action.
2. Submission of this Proof of Claim and Release, however, does not assure that you
will share in the proceeds of the Settlement in the Action.
3. YOU MUST MAIL OR SUBMIT ONLINE YOUR COMPLETED AND SIGNED
PROOF OF CLAIM AND RELEASE NO LATER THAN ___________, 2019, TO THE COURT-
APPOINTED CLAIMS ADMINISTRATOR IN THIS CASE AT THE FOLLOWING
ADDRESS:
EPIQ CLASS ACTION & CLAIMS SOLUTIONS, INC.
PO BOX 2312
PORTLAND, OR 97208-2312
If you are NOT a Class Member, as defined below, DO NOT submit a Proof of Claim and Release
form.
4. If you are a Class Member and you do not timely and validly request exclusion
from the Class, you are bound by the terms of any judgment entered in the Action, including the
releases provided therein, WHETHER OR NOT YOU SUBMIT A PROOF OF CLAIM AND
RELEASE FORM.
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 2 of 11
PROOF OF CLAIM 3
II. DEFINITIONS1
1. “Blount” means Blount International, Inc.
2. “Class” means all persons who held Blount common stock continuously from
March 4, 2016, the record date for voting on the Transaction, through April 12, 2016, when the
Transaction was completed. Excluded from the Class are Defendants, the Purchasers, the officers
and directors of the Company at all relevant times, members of the immediate families of the
Individual Defendants and their legal representatives, heirs, successors or assigns, and any entity
in which Defendants have or had a controlling interest, and any Person who timely and validly
seeks exclusion from the Class.
3. “Defendants” means Blount and the Individual Defendants.
4. “Individual Defendants” means Joshua L. Collins, David A. Willmott, Robert E.
Beasley, Jr., Ronald Cami, Andrew C. Clarke, Nelda J. Connors, E. Daniel James, Harold E.
Layman, Max L. Lukens, and Daniel J. Obringer.
5. “Person” means an individual, corporation, partnership, limited partnership,
association, joint stock company, estate, legal representative, trust, unincorporated association,
government or any political subdivision or agency thereof, and any business or legal entity and
their spouses, heirs, predecessors, successors, representatives, or assignees.
6. “Purchasers” means American Securities LLC, P2 Capital Partners LLC, ASP
Blade Intermediate Holdings, Inc., and ASP Blade Merger Sub, Inc.
1 A complete list of definitions is contained in the Stipulation, which is available at
http://www.blountinternationalsettlement.com/.
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 3 of 11
PROOF OF CLAIM 4
7. “Related Parties” means each of the Parties’ past or present directors, officers,
employees, partners, insurers, co-insurers, reinsurers, principals, controlling shareholders,
attorneys, accountants, auditors, financial advisors, personal or legal representatives, predecessors,
successors, parents, subsidiaries, divisions, affiliates, joint ventures, assigns, spouses, heirs,
estates, related or affiliated entities, any entity in which any Party has a controlling interest, any
members of any Party’s immediate family, or any trust of which any Party is the settlor or which
is for the benefit of any Party’s immediate family.
8. “Released Claims” means any and all claims that have or could have been
asserted in this Litigation, as well as and any all claims that have been asserted, could have
been asserted, or could be asserted now or in the future by any Class Member in his, her, or its
capacity as a purchaser, seller, or holder of Blount common stock that have arisen from, could
have arisen from, or relate in any manner to the Transaction, the process leading up to the
Transaction, the Proxy Statement and any supplement thereto, or the financial projections
referenced in the Complaint. “Released Claims” include “Unknown Claims,” as defined in ¶ 11
below. Notwithstanding any other provisions to the contrary herein, “Released Claims” do not
include claims to enforce the Settlement.
9. “Released Persons” means each and all of the Defendants and each of their
respective Related Parties.
10. “Transaction” means the transaction announced on December 10, 2015 and
completed on April 12, 2016 pursuant to which the Purchasers acquired all of the outstanding
shares of Blount common stock for $10.00 per share.
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 4 of 11
PROOF OF CLAIM 5
11. “Unknown Claims” means any Released Claims which Lead Plaintiffs or any Class
Member, as of the Effective Date, does not know or suspect to exist in his, her or its favor, whether
direct, indirect, or derivative, including those which, if known by him, her or it, might have affected
his, her or its settlement with and release of the Released Persons, or might have affected his, her
or its decision not to object to this Settlement. With respect to any and all Released Claims, the
Settling Parties stipulate and agree that, upon the Effective Date, Lead Plaintiffs shall expressly
waive and each of the Class Members shall be deemed to have, and by operation of the Judgment
shall have, expressly waived, the provisions, rights and benefits of California Civil Code §1542,
which provides:
A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the release, which
if known by him or her must have materially affected his or her settlement
with the debtor.
Lead Plaintiffs shall expressly waive and each of the Class Members shall be deemed to have, and
by operation of the Judgment shall have, expressly waived, any and all provisions, rights and
benefits conferred by any law of any state or territory of the United States, or principle of common
law that is similar, comparable or equivalent to California Civil Code §1542, or that might
otherwise operate to bar or limit the release of Unknown Claims. Lead Plaintiffs and Class
Members may hereafter discover facts in addition to or different from those which he, she, or it
now knows or believes to be true with respect to the subject matter of the Released Claims, but
Lead Plaintiffs shall expressly release and each Class Member, upon the Effective Date, shall be
deemed to have, and by operation of the Judgment shall have, expressly, fully, finally, and forever
settled and released any and all Released Claims, known or unknown, suspected or unsuspected,
contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 5 of 11
PROOF OF CLAIM 6
have existed, upon any theory of law or equity now existing or coming into existence in the future,
including, but not limited to, conduct that is negligent, intentional, with or without malice, or a
breach of any duty, law, or rule, without regard to and notwithstanding the subsequent discovery
or existence of such different or additional facts. Lead Plaintiffs acknowledge, and the Class
Members shall be deemed by operation of the Judgment to have acknowledged, that the foregoing
waiver was separately bargained for and a key element of the Settlement of which this release is a
part.
III. CLAIMANT IDENTIFICATION
1. If you held Blount common stock, and you held the stock certificate(s) in your
name, you are the beneficial purchaser as well as the record purchaser. If, however, the
certificate(s) were registered in the name of a third party, such as a nominee or brokerage firm,
you are the beneficial purchaser and the third party is the record purchaser.
2. Use Part I of this form entitled “Claimant Identification” to identify each share held
of record (“nominee”), if different from the beneficial holder of the Blount common stock that
form the basis of this claim. THIS CLAIM MUST BE FILED BY THE ACTUAL BENEFICIAL
HOLDER(S) OR THE LEGAL REPRESENTATIVE OF SUCH HOLDER(S) OF THE BLOUNT
COMMON STOCK UPON WHICH THIS CLAIM IS BASED.
3. All joint holders must sign this claim. Executors, administrators, guardians,
conservators, and trustees must complete and sign this claim on behalf of Persons represented by
them and their authority must accompany this claim and their titles or capacities must be stated.
The Social Security (or taxpayer identification) number and telephone number of the beneficial
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 6 of 11
PROOF OF CLAIM 7
owner may be used in verifying the claim. Failure to provide the foregoing information could delay
verification of your claim or result in rejection of the claim.
IV. CLAIM FORM
1. Use Part II of this form entitled “Holdings in Blount Common Stock” to state the
number of shares of Blount common stock that you held continuously from March 4, 2016, the
record date for voting on the Transaction, through April 12, 2016, when the Transaction was
completed.
2. Copies of broker confirmations or other documentation of your holdings in Blount
common stock should be attached to your claim. Failure to provide this documentation could delay
verification of your claim or result in rejection of your claim.
3. The above requests are designed to provide the minimum amount of information
necessary to process the simplest claims. The Claims Administrator may request additional
information as required to efficiently and reliably calculate your recovery. In the event the Claims
Administrator cannot perform the calculation accurately or at a reasonable cost to the Class with
the information provided, the Claims Administrator may condition acceptance of the claim upon
the production of additional information and/or the claimant’s responsibility for any increased
costs due to the nature and/or scope of the claim.
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 7 of 11
PROOF OF CLAIM 8
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
PORTLAND DIVISION
Azar v. Blount International, Inc.,
Case No. 3:16-CV-00483-SI
PROOF OF CLAIM AND RELEASE
Must Be Postmarked No Later Than:
___________, 2019
Please Type or Print
Do NOT use red ink, pencil, or staples.
PART I: CLAIMANT IDENTIFICATION
Beneficial Owner’s Name (Last, Middle Initial, First Name)
Co-Beneficial Owner’s Name (Last, Middle Initial, First Name)
__IRA __ Joint Tenancy __ Employee __ Individual __ Other:_________
Trustee/Asset Manager/Nominee/Record Owner’s Name (if Different from Beneficial
Owner)
Account #/Fund # (Not necessary for individual filers)
Social Security Number, or Taxpayer Identification Number
Telephone Number (Work) Telephone Number (Home)
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 8 of 11
PROOF OF CLAIM 9
Email Address
MAILING INFORMATION
Address
City State Zip Code
Foreign Province Foreign Country
PART II: SCHEDULE OF TRANSACTIONS IN BLOUNT COMMON STOCK
State how many shares of Blount common
stock you held on the record date,
March 4, 2016:
Proof enclosed? __ yes __ no
State how many shares of Blount common
stock you held when the Transaction closed,
April 12, 2016:
Proof enclosed? __ yes __ no
YOU MUST READ AND SIGN THE RELEASE ON PAGE __________.
FAILURE TO SIGN THE RELEASE MAY RESULT IN A DELAY IN PROCESSING OR THE
REJECTION OF YOUR CLAIM.
V. SUBMISSION TO JURISDICTION OF COURT AND ACKNOWLEDGMENTS
I (We) submit this Proof of Claim and Release under the terms of the Stipulation of
Settlement dated as of April 23, 2019 (the “Stipulation”) described in the Notice. I (We) also
submit to the jurisdiction of the United States District Court for the District of Oregon, Portland
Division, with respect to my (our) claim as a Class Member (as defined in the Notice) and for
purposes of enforcing the release set forth herein. I (We) further acknowledge that I am (we are)
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 9 of 11
PROOF OF CLAIM 10
bound by and subject to the terms of any judgment that may be entered in the Action. I (We) agree
to furnish additional information to Lead Counsel and/or the Claims Administrator to support this
claim if required to do so. I (We) have not submitted any other claim covering the same holdings
Blount common stock and know of no other Person having done so on my (our) behalf.
VI. RELEASE
1. I (We) hereby acknowledge full and complete satisfaction of, and do hereby waive,
release, forever discharge, and dismiss, with prejudice, and agree not to institute, maintain, or
prosecute any or all of the Released Claims (including Unknown Claims) against any or all of the
Released Persons, all as defined herein and in the Notice and Stipulation.
2. This release shall be of no force or effect unless and until the Court approves the
Stipulation and it becomes effective on the Effective Date.
3. I (We) hereby warrant and represent that I (we) am or are not a Person excluded
from the definition of the Class.
4. I (We) hereby warrant and represent that I (we) have not assigned or transferred or
purported to assign or transfer, voluntarily or involuntarily, any matter released pursuant to this
release or any other part or portion thereof.
5. I (We) hereby warrant and represent that I (we) have included all requested
information about all of my (our) holdings of Blount common stock on the record date,
March 4, 2016, requested in this claim form.
6. The number(s) shown on this form is (are) the correct SSN/TIN(s).
7. I (We) certify that I am (we are) NOT subject to backup withholding under the
provisions of Section 3406(a)(1)(C) of the Internal Revenue Code. (NOTE: If you have been
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 10 of 11
PROOF OF CLAIM 11
notified by the Internal Revenue Service that you are subject to backup withholding, you must
cross out Item 7 above.)
8. I (We) declare under penalty of perjury under the laws of the United States of
America that the foregoing information supplied by the undersigned is true and correct.
Executed this _____ day of _______________, in _________________, _________________.
(Date) (Month/Year) (City) (State/Country)
(Sign your name here)
(Type or print your name here)
(Capacity of person(s) signing, e.g.,
Beneficial Purchaser, Executor or
Administrator)
ACCURATE CLAIMS PROCESSING TAKES A SIGNIFICANT AMOUNT OF TIME.
THANK YOU FOR YOUR PATIENCE.
Reminder Checklist:
1. Please sign the above release and declaration.
2. Remember to attach copies of supporting documentation, if available.
3. Do not send original stock certificates.
4. Keep a copy of your claim form for your records.
5. If you desire an acknowledgment of receipt of your claim form, please send it Certified
Mail, Return Receipt Requested.
6. If you move, please send us your new address.
Case 3:16-cv-00483-SI Document 145-3 Filed 04/23/19 Page 11 of 11
EXHIBIT D
SUMMARY NOTICE 1
MCGAUGHEY ERICKSON
Robert J. McGaughey, OSB #800787
Aurelia Erickson, OSB #126170
Kevin Kress, OSB #146003
65 SW Yamhill Street, Suite 200
Portland, OR 97204
Tel. (503) 223-7555
Liaison Counsel for Plaintiffs
[Additional counsel listed on signature page.]
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, AND DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
SUMMARY NOTICE OF
PENDENCY AND PROPOSED
SETTLEMENT OF CLASS ACTION
Case 3:16-cv-00483-SI Document 145-4 Filed 04/23/19 Page 1 of 4
SUMMARY NOTICE 2
IF YOU HELD BLOUNT INTERNATIONAL, INC. (“BLOUNT”) COMMON STOCK
CONTINUOUSLY FROM MARCH 4, 2016, THE RECORD DATE FOR VOTING ON THE
PROPOSED ACQUISITION OF BLOUNT BY AMERICAN SECURITIES LLC AND P2
CAPITAL PARTNERS LLC, THROUGH APRIL 12, 2016, THE DATE THE TRANSACTION
WAS COMPLETED, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION
SETTLEMENT. CERTAIN PERSONS ARE EXCLUDED FROM THE CLASS AS SET
FORTH BELOW.1
PLEASE READ THIS NOTICE CAREFULLY. YOUR RIGHTS MAY BE AFFECTED
BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.
YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil
Procedure and Order of the United States District Court for the District of Oregon, Portland
Division, that the above-captioned litigation (the “Action”) has been certified as a class action and
that a Settlement has been proposed for $3,059,000.00 in cash. A hearing will be held on
__________, 2019, at ___ _.m., before the Honorable Michael H. Simon at the Mark O. Hatfield
United States Courthouse, 1000 Southwest Third Avenue, Portland, Oregon 97204-2944, for the
purpose of determining whether: (1) the proposed Settlement should be approved by the Court as
fair, reasonable and adequate; and (2) the application of Lead Plaintiffs’ counsel for the payment
of attorneys’ fees and expenses, including Lead Plaintiffs’ expenses incurred in connection with
the Action, should be approved.
If you are a Class Member described above, your rights may be affected by the Settlement
of the Action and you may be entitled to share in the Settlement Fund. If you have not received a
detailed Notice of Pendency and Proposed Settlement of Class Action (“Notice”) and a copy of
1 This Summary Notice incorporates by reference the definitions in the Stipulation of Settlement
dated as of April 12, 2019 (“Stipulation”), and all capitalized terms used, but not defined herein,
shall have the same meanings as in the Stipulation. The Stipulation can be obtained at
www.blountinternationalsettlement.com.
Case 3:16-cv-00483-SI Document 145-4 Filed 04/23/19 Page 2 of 4
SUMMARY NOTICE 3
the Proof of Claim and Release, you may obtain a copy of these documents by contacting the
Claims Administrator: Azar v. Blount International, Inc., c/o Epiq Class Action & Claims
Solutions, Inc., PO Box 2312, Portland, OR 97208-2312. You may also obtain copies of the
Stipulation of Settlement, Notice, and Proof of Claim and Release at
www.blountinternationalsettlement.com.
If you are a Class Member, to be eligible to share in the distribution of the Net Settlement
Fund, you must submit a Proof of Claim and Release postmarked no later than __________, 2019.
If you are a Class Member and do not submit a valid Proof of Claim and Release, you will not be
eligible to share in the distribution of the Net Settlement Fund but you will still be bound by any
judgment entered by the Court in this Action (including the releases provided for therein).
To exclude yourself from the Class, you must submit a written request for exclusion
postmarked by _________, 2019, and in accordance with the instructions set forth in the Notice.
If you are a Class Member and do not exclude yourself from the Class, you will be bound by any
judgment entered by the Court in this Action (including the releases provided for therein), whether
or not you submit a Proof of Claim and Release. If you submit a written request for exclusion, you
will have no right to recover money pursuant to the Settlement.
Any objection to the terms and conditions of the proposed Settlement, the allocation, the
request for attorneys’ fees and reimbursement of litigation expenses, or the request for a
compensatory award to the Lead Plaintiffs must be filed with the Court and delivered such that it
is received by each of the following no later than __________, 2019:
Case 3:16-cv-00483-SI Document 145-4 Filed 04/23/19 Page 3 of 4
SUMMARY NOTICE 4
COURT LEAD COUNSEL DEFENSE COUNSEL
Clerk of the Court
U.S. District Court for the
District of Oregon,
Portland Division
Mark O. Hatfield
United States Courthouse
1000 Southwest Third Ave.
Portland, OR 97204
W. Scott Holleman
Johnson Fistel LLP
99 Madison Avenue, 5th Fl.
New York, NY 10016
Gary Bornstein
Cravath, Swaine &
Moore LLP
825 Eighth Avenue
New York, NY 10019
PLEASE DO NOT CONTACT THE COURT OR THE CLERK’S OFFICE
REGARDING THIS NOTICE. If you have any questions about the settlement, you may contact
Lead Counsel at the address listed above.
DATED: ______________________ BY ORDER OF THE COURT
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
PORTLAND DIVISION
Case 3:16-cv-00483-SI Document 145-4 Filed 04/23/19 Page 4 of 4
EXHIBIT E
[PROPOSED] ORDER AND FINAL JUDGMENT 1
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
PORTLAND DIVISION
This matter came before the Court for hearing pursuant to the Order Preliminarily
Approving Settlement and Providing for Notice (“Preliminary Approval Order”) dated
________, 2019, on the application of the parties for approval of the Settlement set forth in the
Stipulation of Settlement dated April 23, 2019 (the “Stipulation”). Due and adequate notice having
been given to the Class as required in the Order, the Court having considered all papers filed and
proceedings held herein and otherwise being fully informed in the premises and good cause
appearing therefore, IT IS HEREBY ORDERED, ADJUDGED AND DECREED that:
1. This Judgment incorporates by reference the definitions in the Stipulation, and all
terms used herein shall have the same meanings as set forth in the Stipulation, unless otherwise
stated herein.
ELIA AZAR and DEAN ALFANGE, on behalf of
themselves and all others similarly situated,
Plaintiffs,
v.
BLOUNT INTERNATIONAL, INC., JOSHUA L.
COLLINS, DAVID A. WILLMOTT, ROBERT E.
BEASLEY, JR., RONALD CAMI, ANDREW C.
CLARKE, NELDA J. CONNORS, E. DANIEL
JAMES, HAROLD E. LAYMAN, MAX L.
LUKENS, AND DANIEL J. OBRINGER,
Defendants.
Case No. 3:16-CV-00483-SI
[PROPOSED] ORDER AND FINAL
JUDGMENT
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 1 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 2
2. This Court has jurisdiction over the subject matter of the Action and over all parties
to the Action, including all Class Members.
3. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, this Court hereby
affirms its determinations in the Preliminary Approval Order and finally certifies for purposes of
settlement only: (i) a Class defined as all persons who held Blount International, Inc. (“Blount”)
common stock continuously from March 4, 2016, the record date for voting on the Transaction,
through April 12, 2016, when the Transaction was completed; (ii) Johnson Fistel, LLP and Levi
& Korsinsky, LLP are certified as Lead Counsel; and (iii) Lead Plaintiffs are certified as Class
Representatives. Excluded from the Class are (i) Defendants; (ii) Purchasers; (iii) the officers and
directors of the Company at all relevant times; (iv) members of the immediate families of the
Individual Defendants and their legal representatives, heirs, successors or assigns; and (vi) any
entity in which Defendants have or had a controlling interest. Also excluded from the Class are
those Persons who properly excluded themselves by timely and validly requesting exclusion from
the Class pursuant to the Notice of Pendency and Proposed Settlement of Class Action sent to
Class Members pursuant to the Preliminary Approval Order.
4. For purposes of settlement only, the Court hereby affirms its determinations in the
Preliminary Approval Order and finds that the prerequisites for a class action under Rules 23(a)
and (b)(3) of the Federal Rules of Civil Procedure have been satisfied in that: (a) the Members of
the Class are so numerous that joinder of all Class Members in the class action is impracticable;
(b) there are questions of law and fact common to the Class which predominate over any individual
question; (c) the claims of the Lead Plaintiffs are typical of the claims of the Class; (d) Lead
Plaintiffs and their counsel have fairly and adequately represented and protected the interests of
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 2 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 3
the Class Members; and (e) a class action is superior to other available methods for the fair and
efficient adjudication of the controversy, considering: (i) the interests of the Members of the Class
in individually controlling the prosecution of the separate actions, (ii) the extent and nature of any
litigation concerning the controversy already commenced by Members of the Class, (iii) the
desirability or undesirability of concentrating the litigation of these claims in this particular forum,
and (iv) the difficulties likely to be encountered in the management of the class action.
5. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, this Court hereby
approves the Settlement set forth in the Stipulation and finds that said Settlement is, in all respects,
fair, reasonable, and adequate to the Class.
6. Except as to any individual claim of those Persons who have validly and timely
requested exclusion from the Class (identified in Exhibit 1 hereto), the Action and all claims
contained therein, as well as all of the Released Claims, are dismissed with prejudice as to Lead
Plaintiffs and the other Class Members, and as against each and all of the Released Persons. The
Settling Parties are to bear their own costs, except as otherwise provided in the Stipulation.
7. The Court finds that the Settlement is fair, just, reasonable and adequate as to each
of the Class Members, and that the Settlement is hereby finally approved in all respects, and the
Settling Parties are hereby directed to perform its terms.
8. Upon the Effective Date, each and all of the Lead Plaintiffs and Class Members, on
behalf of themselves and their respective heirs, executors, administrators, successors, and assigns
and all persons acting in concert with any such person shall, with respect to each and every
Released Claim, waive, release, forever discharge, and dismiss, with prejudice, and agree not to
institute, maintain, or prosecute any or all Released Claims against any or all of the Released
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 3 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 4
Persons, and shall be permanently and finally enjoined, without the necessity of posting a bond,
from commencing or prosecuting any actions or other proceedings asserting any of the Released
Claims either directly, indirectly, or representatively against any of the Released Persons or
Defense Counsel.
9. Upon the Effective Date, each of the Released Persons shall be deemed to have,
and by operation of this Judgment shall have, fully, finally, and forever released, relinquished and
discharged Lead Plaintiffs, each and all of the Class Members, and their attorneys (including,
without limitation, Lead Counsel), employees, heirs, successors, and assigns from all claims
(including, without limitation, Unknown Claims) arising out of, relating to, or in connection with,
the institution, prosecution, assertion, settlement or, resolution of the Action and/or the Action.
Claims to enforce the Settlement are not released.
10. Upon the Effective Date, Lead Plaintiffs and all Class Members and anyone
claiming through or on behalf of any of them, are forever barred and enjoined from commencing,
instituting, or continuing to prosecute any action or proceeding in any court of law or equity,
arbitration tribunal, administrative forum, or other forum of any kind, asserting any of the Released
Claims against any of the Released Parties, and each of them.
11. The distribution of the Notice and publication of the Summary Notice as provided
for in the Preliminary Approval Order constituted the best notice practicable under the
circumstances, including individual notice to Class Members who could be identified through
reasonable effort. Said notice provided the best notice practicable under the circumstances of those
proceedings and of the matters set forth therein, including the proposed Settlement set forth in the
Stipulation, to all Persons entitled to such notice, and said notice fully satisfied the requirements
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 4 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 5
of Federal Rule of Civil Procedure 23, due process, and any other applicable law, including the
Private Securities Action Reform Act of 1995.
12. Any order entered regarding any attorneys’ fee and expense application shall in no
way disturb or affect this Judgment and shall be considered separate from this Judgment.
13. The Stipulation and any proceedings taken pursuant to it:
(a) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of, or construed as or deemed to be evidence of, any presumption, concession, or
admission by any Defendant or Lead Plaintiff with respect to the truth of any fact alleged by the
Plaintiffs or the validity of any claim that has been or could have been asserted in the Action or in
any litigation, or the deficiency of any defense that has been or could have been asserted in the
Action or in any litigation, or of any liability, negligence, fault, or wrongdoing of any Defendant;
(b) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of a presumption, concession, or admission of any fault, misrepresentation, or omission
with respect to any statement or written document approved or made by any Defendant;
(c) shall not be offered or received against any Defendant or Lead Plaintiff as
evidence of a presumption, concession, or admission with respect to any liability, negligence, fault,
or wrongdoing, or in any way referred to for any other reason as against any Defendant, in any
other civil, criminal, or administrative action or proceeding, other than such proceedings as may
be necessary to effectuate the provisions of this Stipulation; provided, however, that if this
Stipulation is approved by the Court, the Settling Parties may refer to it to effectuate the liability
protection granted them hereunder; and
(d) shall not be construed against any Defendant or Lead Plaintiff as an
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 5 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 6
admission or concession that the consideration to be given hereunder represents the amount which
could or would have been recovered after trial.
14. Without affecting the finality of this Judgment in any way, this Court hereby retains
continuing jurisdiction over: (a) implementation of the Settlement and any award or distribution
of the Settlement Fund, including interest earned thereon; (b) disposition of the Settlement Fund;
(c) hearing and determining applications for attorneys’ fees and expenses in the Action; and (d) all
parties hereto for the purpose of construing, enforcing and administering the Settlement.
15. The Court finds that during the course of the Action, the Settling Parties and their
respective counsel at all times complied with the requirements of Federal Rule of Civil
Procedure 11.
16. In the event that the Settlement does not become effective in accordance with the
terms of the Stipulation, or the Effective Date does not occur, or the conditions set forth in ¶ 8.1
of the Stipulation do not occur, then this Judgment shall be rendered null and void to the extent
provided by and in accordance with the Stipulation and shall be vacated and, in such event, all
orders entered and releases delivered in connection herewith shall be null and void to the extent
provided by and in accordance with the Stipulation.
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 6 of 7
[PROPOSED] ORDER AND FINAL JUDGMENT 7
17. The Settling Parties shall bear their own costs and expenses, except as otherwise
provided in the Stipulation or in this Judgment.
IT IS SO ORDERED.
DATED: ____________________
THE HONORABLE MICHAEL H. SIMON
UNITED STATES DISTRICT JUDGE
Case 3:16-cv-00483-SI Document 145-5 Filed 04/23/19 Page 7 of 7