Common use of Scenario 3 Clause in Contracts

Scenario 3. If the total of the Adjusted Amounts for all Claimants with Valid Claims is equal to the Net Settlement Fund, Claimants with Valid Claims shall be paid their Adjusted Amounts. If the total of the Adjusted Amounts for all Claimants with Valid Claims exceeds the Net Settlement Fund, then the Adjusted Amount for each Claimant with a Valid Claim shall be the Adjusted Amount decreased to a lower percentage, on a pro-rata basis, until the total of the Adjusted Amounts equals the Net Settlement Fund. In this event, the Adjusted Amounts for each Payment Group will be reduced in a manner that maintains the 10 / 5 / 3 ratio of percentages between Payment Groups 1, 2, and 3, respectively, as specified in Section 2.4.3 (i-iii) above. To illustrate, if the total of the Adjusted Amounts for all Valid Claims were twice the Net Settlement Fund, Claimants in Payment Group 1 would receive 50% of their Amounts Allegedly Withheld, Claimants in Payment Group 2 would receive 25% of their Amounts Allegedly Withheld, and Claimants in Payment Group 3 would receive 15% of their Amounts Allegedly Withheld.