Settlement Agreement

1 Farrell v. Bank of America, United States Court of Appeals for the Ninth Circuit Appeal No. 17-55847 United States District Court for the Southern District of California Case No. 3:16-CV-00492-L-WVG Settlement and Release Agreement Case 3:16-cv-00492-L-WVG Document 69-2 Filed 10/31/17 Page 2 of 73 1 This Settlement and Release Agreement ( Agreement ) dated as of October 30, 2017 is entered into by Plaintiffs Joanne Farrell, Ronald Dinkins, Larice Addamo, and Tia Little ( Plaintiffs ) on behalf of the Settlement class defined herein, and Bank of America, ( BANA ).

2 Plaintiffs and BANA are each individually a Party and are collectively the Parties. The Parties hereby agree to the following terms in full Settlement of the action titled Farrell v. Bank of America, , No. 3:16-CV-00492-L-WVG ( Cal.) ( Action ), subject to Final Approval, as defined below, by the United States District Court for the Southern District of California ( Court ). I RECITALS WHEREAS, on February 25, 2016, Plaintiff Farrell filed the Action and alleges in the Complaint that the EOBC, as defined below, is a form of usurious interest under Sections 85 and 86 of the National Bank Act ( NBA ); WHEREAS, on April 29, 2016, BANA moved to dismiss the Action on the grounds that overdraft fees, including the EOBC, are excluded as a matter of law from the definition of interest under the NBA, which motion was denied by the Court on December 19, 2016.

3 WHEREAS, on January 6, 2017, BANA filed a motion for certification of the Court s order for interlocutory appeal and to stay the case pending appeal; WHEREAS, on March 13, 2017, Plaintiff Farrell filed an unopposed motion to amend her Complaint to add Ronald Dinkins, Larice Addamo, and Tia Little as three additional named plaintiffs; WHEREAS, on April 11, 2017, the Court granted BANA s motion for certification of the dismissal order for interlocutory appeal and stayed the case pending resolution by the United States Court of Appeals for the Ninth Circuit ( Ninth Circuit ); WHEREAS, on April 21, 2017, BANA filed a petition for permission to appeal the Court s dismissal order with the Ninth Circuit; WHEREAS, on June 14, 2017, the Ninth Circuit granted BANA s petition for permission to appeal, and the appeal is pending as of the date of this Agreement .

4 WHEREAS, BANA has denied, and continues to deny, each and every claim and allegation of wrongdoing asserted in the Action, and BANA believes it would ultimately be successful in its defense of all claims asserted in the Action; WHEREAS, BANA has nevertheless concluded that because further litigation involves risks and could be protracted and expensive, Settlement of the Action is advisable; WHEREAS, Plaintiffs, individually and on behalf of the Settlement class as defined below, believe that the claims asserted in the Action have merit and that there is evidence to support their claims; Case 3:16-cv-00492-L-WVG Document 69-2 Filed 10/31/17 Page 3 of 73 2 WHEREAS, Plaintiffs nevertheless recognize and acknowledge the expense and length of continued litigation and legal proceedings necessary to prosecute the Action through trial and through any appeals.

5 And WHEREAS, Plaintiffs have also, in consultation with their counsel, assessed the legal risks faced in the Action, and on the basis of that assessment believe that the Settlement set forth in this Agreement and as defined below provides substantial benefits to Plaintiffs and the Settlement class , is fair, reasonable, and adequate, and is in the best interests of Plaintiffs and the Settlement class . NOW THEREFORE, the Parties agree that the Action shall be fully and finally compromised, settled, released, and dismissed with prejudice, subject to the terms and conditions of this Agreement and subject to Final Approval as set forth herein.

6 II TERMS OF THE Settlement Section 1. Definitions In addition to the terms defined elsewhere in this Agreement , the following capitalized terms used in this Agreement shall have the meanings specified below: Administrative Costs means all out-of-pocket costs and third-party expenses of the Administrator that are associated with providing notice of the Settlement to the Settlement class , administering and distributing the Settlement Amount to class Members, or otherwise administering or carrying out the terms of the Settlement , including but not limited to postage and telecommunications costs.

7 Administrative Costs shall not include the Administrator s Hourly Charges. Administrator means Epiq Systems. Administrator s Hourly Charges means any fees paid to the Administrator on an hourly basis for its services in administering the Settlement , excluding Administrative Costs, printing, postage, National Change of Address Database charges, and any other costs not customarily billed by the Administrator on an hourly basis. Adjustments means, collectively, the class Representatives Service Awards, the Fee & Expense Award, and the amount of the Administrator s Hourly Charges.

8 BANA Releasees has the meaning ascribed to it in Section (a). Cash Settlement Amount has the meaning ascribed to in Section (b)(1). class Counsel means Tycko & Zavareei LLP, Kopelowitz Ostrow Ferguson Weiselberg Gilbert, Kelley Uustal, PLC, and Creed & Gowdy, class Member means a person who falls within the definition of the Settlement class . Case 3:16-cv-00492-L-WVG Document 69-2 Filed 10/31/17 Page 4 of 73 3 class Member Award means an award to a class Member of funds from the Net Cash Settlement Amount.

9 class Notices means Exhibits B, C, and D attached hereto. class Period means the period between February 25, 2014 and December 30, 2017. class Representative Service Award has the meaning ascribed to it in Section Complaint means the complaint filed in the Action on February 25, 2016. Direct Deposit Payment has the meaning ascribed to it in Section (b). Debt Reduction Payments means the debt reduction payments described in Section (b)(4). Debt Reduction Amount has the meaning ascribed to it in Section (b)(1).

10 Effective Date shall mean when the last of the following has occurred: (1) the day following the expiration of the deadline for appealing Final Approval if no timely appeal is filed, or (2) if an appeal of Final Approval is taken, the date upon which all appeals (including any requests for rehearing or other appellate review), as well as all further appeals therefrom (including all petitions for certiorari) have been finally resolved without material change to the Final Approval Order, as determined by BANA, and the deadline for taking any further appeals has expired such that no future appeal is possible; or (3) such date as the Parties otherwise agree in writing.