Class Member and Attorney Guide

b. No GPO Election.

Class Members who do not elect the GPO will receive their benefits under the Affected Product Revision Surgery Fund in two payments, as described below:

C. The Extraordinary Injury Fund ("EIF")

1. Eligibility.

You are eligible if:

• You have not undergone an Affected Product Revision Surgery solely because you are medically incapable of undergoing the procedure; or
• You have not undergone a removal surgery but you have undergone a surgical procedure where your treating surgeon has attempted to secure your Affected Product (e.g., with screws or cement); or
• You have undergone a removal surgery and, as a result, you have experienced one or more complication(s). Complications include, but are not limited to, the following:
  • Need for Additional Revision Surgery;
  • One or more dislocations;
  • Certain wound infections requiring surgical intervention;
  • Pulmonary embolism;
  • Grade IV heterotopic ossification;
  • Non-union of either a trochanteric or tibial tubercle osteotomy;
  • Extensor or abductor mechanism disruption;
  • Periprosthetic fracture;
  • Direct injury to the genitourinary system;
  • Permanent nerve injury;
  • Permanent vascular injury;
  • Permanent injury due to an infection;
  • Heart attack;
  • Stroke; or
  • Death; or

• The Claims Administrator determines that you have suffered a harm not expressly provided for under the Settlement; or
• You are the Derivative Claimant or Representative Claimant to one of the above Affected Product Recipients ("APRs").

2. Benefits.

The amount of EIF compensation will depend on several factors, including: 1) the complication or other harm that you have experienced; 2) the severity of your complication or other harm; 3) your age at the time that the complication or other harm occurred; and 4) the Claims Administrator’s assessment of your complication or other harm relative to the complications and harm experienced by other Class Members. Depending on these factors, Class Members may receive up to Eight Hundred Thousand Dollars ($800,000.00) in EIF benefits. Derivative Claimants will receive up to one percent (1%) of the total EIF benefit to which the Affected Product Recipient is entitled. These benefits will only be available after the Settlement receives Final Judicial Approval.

If you have submitted a claim for EIF benefits and subsequently develop a medical condition(s) or complication(s) that qualifies you for EIF benefits greater than those that you have previously received, you are entitled to the difference.

3. Claims Process.

To register for benefits under the EIF, you must have timely submitted a completed Blue Formor Orange Form, as applicable, and must also submit a completed Green Form on or before the date that is the later of (i) five hundred forty-five (545) days after the date of the applicable Covered Revision Surgery or (ii) one hundred eighty (180) days after a "Non-removal Surgery" or (iii) one hundred eighty (180) days after your treating physician’s determination that an APRS would be indicated but for a medical condition(s) or (iv) one hundred eighty (180) days after Trial Court Approval. You will also need to provide documentation evidencing the condition(s) and/or complication(s) that form the basis of your claim for EIF benefits, as set forth in the Green Form.

To register for derivative benefits under the Extraordinary Injury Fund, Derivative Claimants must complete a Yellow Form and the APR with whom they are associated must have timely submitted a completed Green Form.

If you have submitted a Claim Form for benefits under the EIF and subsequently develop a medical condition and/or suffered a harm that qualifies you for EIF benefits greater than those you have previously received, you must submit a new Green Form, indicating that it is a supplemental submission. Your supplemental Green Form need not be completed in full; rather, you need only submit changes to information previously provided.

4. Schedule of Benefit Payments to Affected Product Recipients ("APRs").

Class Members will receive their benefits under the Extraordinary Injury Fund in two payments, as described below:

D. The Subrogation and Uninsured Medical Expenses Fund

1. Eligibility / Benefits

Medicare, health insurance companies and other Third-Party Payors may be entitled to reimbursement for reasonable and necessary medical expenses that they paid or that were incurred on behalf of Class Members. If you have had a Revision Surgery, Sulzer will satisfy these claims for reimbursement. Further, you and/or your attorney will be defended and held harmless against any claims by Medicare, health insurance companies or other Third-Party Payors for reimbursement of medical expenses necessitated by an Affected Product.

If, alternatively, you were not insured at the time you underwent an Affected Product Revision Surgery ("APRS"), you may be entitled to reimbursement of reasonable and necessary out-of-pocket expenses that you incurred as a result of that Revision Surgery.

You will need to register for benefits under the Subrogation and Uninsured Medical Expenses Fund only if you were not insured at the time you underwent an APRS. These benefits will only become available after the Settlement receives Final Judicial Approval.

2. Claims Process.

To register, you must have timely submitted a completed Orange Form and must submit a completed Red Form, on or before the date that is the later of (i) one hundred eighty (180) days after the receipt of medical care for which you seek medical expense reimbursement or (ii) one hundred eighty (180) days after Trial Court Approval. In completing the Red Form, it is necessary that you sign the Declaration therein, indicating that you are not covered by a Third Party Payor of medical expenses (i.e. a medical insurer). You will also need to provide documentation evidencing the payment of any unreimbursed medical expense made necessary by an Affected Product. A list of acceptable documentation is included on the Red Form.

 

E. The Medical Research and Monitoring Fund

1. Eligibility / Benefits

All Class Members may receive benefits under the Medical Research and Monitoring Fund. These benefits will consist of medical research relating to the recognition and identification of medical issues unique to Class Members. A registry will be maintained to collect the medical records and films of consenting

2. Claims Process

To register for the Research and Monitoring benefits, you must timely complete the Blue Form or Orange Form and specifically indicate (in the designated "Medical Monitoring and Screening" portion) your interest in participating in this program

F. Attorney Fees

Some Class Members have entered into private fee agreements with their own attorneys. Private fee agreements entered into prior to February 2, 2002 will not be affected by this Settlement, with minor exceptions, as noted below. The Sulzer Settlement Trust will pay a portion of the attorney fees owed by Class Members to their attorneys under these private fee agreements.

If a Class Member entered into a contingency fee agreement with his or her own attorney, the contingency fee shall apply against benefits received by the Class Member under the Affected Product Revision Surgery Fund and the Extraordinary Injury Fund. Class Members may also receive benefits under the Unrevised Affected Product Recipient Fund, the Subrogation and Uninsured Medical Expenses Fund and the Medical Research and Monitoring Fund. Contingency fees, however, shall not apply against these benefits.

1. Contingent Fee Calculations

To calculate the fee pursuant to a contingency fee contract, the Class Member’s attorney shall apply the contingency percentage to the product reached by multiplying the stated benefit (under either the Affected Product Revision Surgery Fund or Extraordinary Injury Fund) amount by 1.25.

Example: If a Class Member’s stated benefit under the Affected Product Revision Surgery Fund is $160,000, and the Class Member’s contingency contract rate is 33 1/3%, then the attorney fee calculation will be as follows:

331/3% of $160,000 x 1.25 = $66,666

2. Fee Payment by the Sulzer Settlement Trust

As a benefit to the Class Member, the Sulzer Settlement Trust shall pay a portion of the Class Member’s attorney fees. This contribution to the attorney fees shall be equal to 23% of the stated benefit x 1.25.

Example:If the stated benefit under the Affected Product Revision Surgery Fund is $160,000 and the contingency contract rate is 33 1/3% then the fee calculation will be as follows:

23% of $160,000 x 1.25 = $46,000

NOTE: This payment towards a Class Member’s attorney fees shall be a set off from, not an addition to, the amount of attorney fees owed by the Class Member. Therefore, under the above example, the Class Member’s attorney, after receiving the fee payment benefit under the Settlement, will be entitled to collect up to $20,666 [i.e., $66,666 – $46,000] directly from the Class Member.

	Individuals With A Sulzer Inter-Op Shell Or Sulzer Tibial Baseplate That Has Not Been Removed	Individuals Who Have Undergone a Revision of a Sulzer Inter-Op Shell, a Sulzer Tibial Baseplate or a Reprocessed Inter-Op Shell.
Cash Benefit: It is not anticipated that Class Members will receive any portion of their benefit in stock.	YES $1000 for each Sulzer Inter-Op Shell or Sulzer Tibial Baseplate that has been implanted. (Blue Form)	YES $160,000 for each Sulzer Inter-Op Shell or Sulzer Tibial Baseplate that has been removed. In addition, up to $46,000 will be paid towards an APR’s attorney fees, if the APR is represented. (Orange Form)
Right to Elect the GPO: Certain Class Members are eligible to receive a portion of their cash benefits – regardless of whether the Settlement ever receives Final Judicial Approval.	NO	YES (Orange Form – GPO Agreement)
Right to Register for EIF Benefits: Benefits are available for certain Class Members who experience extraordinary complications and/or who suffer from other harm, as described in the Settlement Agreement.	YES Up to $120,000. In addition APRs who are represented will have a portion of their attorney fees paid by the Sulzer Settlement Trust. (Blue Form and Green Form)	YES Up to $800,000. In addition, APRs who are represented by an attorney will have a portion of their attorney fees paid by the Sulzer Settlement Trust. (Orange Form and Green Form)
Right To Subrogation And Uninsured Medical Costs Reimbursement Benefits : Sulzer will satisfy claims for reimbursement by Medicare, health insurance companies and other Third-Party Payors. Sulzer may also reimburse Class Members who were uninsured at the time of an APRS for out-of-pocket expenses associated with that APRS.	YES Sulzer will satisfy claims for reimbursement by Medicare, health insurance companies and other Third-Party Payors. (No form necessary)	YES Sulzer will satisfy claims for reimbursement by Medicare, health insurance companies and other Third-Party Payors. Additionally, Sulzer may also reimburse Class Members who were not insured at the time of an APRS for out of pocket expenses associated with that APRS. (Orange Form and Red Form)
Right to Register for Medical Research Screening : Research relating to the incidence and progression of peri-implant radiolucencies and osteolytic lesions associated with cementless acetabular and tibial components, will be sponsored.	YES (Blue Form – Medical Registry Election)	YES (Orange Form – Medical Registry Election)

V. OTHER RIGHTS UNDER THE SETTLEMENT

A. The Right to Object

The Court that is presiding over the litigation involving the Sulzer Inter-Op Shell and Sulzer Tibial Baseplate will hold a Fairness Hearing, beginning on May 6, 2002, at 10:00 a.m. in Courtroom 135, United States Courthouse, 201 Superior Avenue, Cleveland, Ohio 44114. The purpose of the Fairness Hearing is to determine whether to approve the Settlement Agreement and to bind all Class Members who have not Opted- Out.

You can appear at the time of the hearing, in person or through an attorney representing you, and present any objection that you have to the Settlement Agreement, but only if you: 1) have not already accepted the GPO, 2) have not registered for Settlement benefits, 3) have not already exercised an Opt-Out Right, and 4) have filed a written objection with the Court. If your written objection is not received by the Court on or before April 29, 2002, it will not be considered by the Court.

B. The Right to Opt-Out

If you do not wish to participate in the Settlement, you must Opt-Out of (exclude yourself from) the Settlement. To exercise an Opt-Out Right, you must notify the Claims Administrator. The notification must be in writing and signed by the Class Member. It must also set forth ALL of the following:

• Your name, address, and telephone number; AND
• The approximate date of implantation; AND
• The name of the surgeon who implanted the Affected Product; AND
• If you are represented by counsel, the name, address, and phone number ofyour attorney.

In addition to the items listed above, please provide the lot number and product number of the Affected Product, if known. You may also provide your Social Security Number, if you choose. The above information must be received by the Claims Administrator, on or before the date that is five business days after Trial Court Approval, at the following address:

Sulzer Settlement Trust
P.O. Box 94558
Cleveland, Ohio 44101-4558

If you do not exercise your Opt-Out Right, you will automatically be bound by the Settlement Agreement. You will not be able to pursue any Settled Claims against Sulzer and/or any other Released Parties.

If you have a question concerning any medical condition that might cause you to consider forgoing the benefits of this Settlement Agreement, you are urged to consult with both a qualified doctor and a lawyer familiar with the Sulzer Hip and Knee litigation claims.

VI. MORE INFORMATION REGARDING THE SETTLEMENT

Further information concerning the Settlement Agreement is included in the detailed Final Notice of Settlement of Nationwide Hip Prosthesis and Knee Prosthesis Product Liability Class Action Litigation, which is also enclosed in the materials you have received.

You may obtain a copy of the entire Settlement Agreement at www.sulzerimplantsettlement.com or by contacting the office of the Claims Administrator at (800) 683-1861.

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