=> al) Verizon = >+ 9:46 AM 47 97% =) Done 4032_001.pdf ) MICHIGAN STATE UNIVERSITY MEMORANDUM To: » Board of Trustees From: John Engler, P Date: December 3, 2018 Re: _ Settlement Earlier than we expected, the last piece of the Settlement puzzle fell into place late on November 21, 2018, when a California court entered the last order we were waiting on. Entry of that order triggered our obligation to pay $425 million into the Survivor's settlement fund and $75 million into our Litigation Fundy We anticipate making the payment on December 4 Consistent with the Board's position that the Healing Fund would be used as a bridge transition to a global settlement, this earlier than expected court action on the settlement permits us to use the $8.6 million remaining balance in the Healing Fund to reduce the amount of our borrowing to pay the settlement. The effect of this is to reduce our net borrowing from $500 milion to $492 million Additionally, with suspension of the Fund last July (because of the ‘rottamng.wsseat massive fraud discovered), the earlier than expected settlement resolution sivassewo _al80 obviated the need to hire a new fund administrator to run a new fucsivassaem temporary fund, (We will resolve any reimbursement claims made before we pmidertmusdy publicly suspended the Fund in July.) We now have greatly expanded on Campus mental health services, including counseling and sexual assault services, to help members of our MSU Community: ‘ttps//msutoday:msu edu/new-/20 1 8/msp-adds-stodent-mental-health-sery ives-location/ ‘https /msu.sol/ourconmitment/our-aetions/protecting- patients. html Finally, we will use any recovery from the Healing Fund fraud and any recovery from our insurers to pay off the bonds used to pay the settlement, en amas