70% Limitation on Loss of Income or Loss of Support

Section 4.02(2) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B) provides that each living HCV Infected Person is entitled to receive compensation for loss of income based on each calendar year equal to 70% of his or her Annual Loss of Net Income for such year until he or she reaches age 65.

This limitation was created as a temporary safeguard to ensure a minimum level of benefits to all claimants.

This 70% limitation will remain in effect until the Courts determine that it should be amended or removed in whole or in part.

Under s. 7.03(1) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B), the Joint Committee may bring a motion every third anniversary of June 30, 2002 asking the Courts to determine whether the restriction on the payment should be amended or removed in whole or in part with respect to the 70% limitation applicable in sections 4.02 (loss of income) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B) and 6.01 (loss of support) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B).

It is pre-determined that this 70% limitation will next be re-assessed by the Courts. The Settlement Agreement could be amended so as to delete the words “70% of” from section 4.02 (2) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B) and 6.01 (loss of support) of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B) and substituted with a greater percentage of recovery for the claimant.

This limitation could be re-assessed to the point where it is altogether deleted.

If you received loss of income compensation or loss of support compensation, you will be paid the difference between what you received (70%) and the new substituted percentage. Interest on the difference will be paid at the Prime Rate commencing on the date of payment of the reduced payment.

Section 7.04 of the Transfused Plan (Schedule A) and Hemophiliac Plan (Schedule B) provides that interest payable under the plans must be calculated on the basis of simple interest, not compound interest.

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