photo courtesy of chautauqua institution

Case 1 : 03-cv-11566 -PBS Document 477 Filed 06/22/2007 of 10

UNITED STATES DISTRICT COURTDISTRICT OF MASSACHUSETTS

HAMS A. QUAAK, ATTILIO POand KARL LEIBINGER, on behalf of themselves

and those similarly situated,Plaintiffs,

V.DEXIA, S.A, and DEXIA BANK BELGIUM

(formerly known as ARTESIA BANKING CORP., SA),

Defendants.

No.: 03-CV-11566 (PBS)

ORDER AND FINAL JUDGMENT

On the 22"a day of June, 2007, a hearing having been held before this Court to determine:

(1) whether the terms and conditions of the Stipulation and Agreement of Settlement with Dexia

Bank Belgium ("Dexia") dated March 28, 2007 (the "Stipulation") are fair, reasonable and

adequate for the settlement of all claims asserted by the Class against Dexia in the Fourth

Amended Class Action Complaint (the "Complaint") now pending in this Court under the above

caption, including the release of Dexia and the Released Parties, and should be approved; (2)

whether judgment should be entered dismissing the claims asserted against Dexia in the

Complaint on the merits and with prejudice in favor of Dexia and as against all persons or

entities that are members of the Class herein that have not requested exclusion therefrom; (3)

whether to approve the Plan of Allocation as a fair and reasonable method to allocate the

settlement proceeds among the members of the Class; and (4) whether and in what amount to

award fees and reimbursement of expenses to Plaintiffs' Counsel and Compensatory Awards to

Plaintiffs. The Court having considered all matters submitted to it at the hearing and otherwise;

and it appearing that a notice of the hearing substantially in the form approved by the Court was

given to all persons or entities reasonably identifiable that purchased the common stock of


Lernout & Hauspie Speech Products N.V. ("L&H") on the NASDAQ Stock Market or that

purchased L&H call options or sold L&H put options on any United States-based options

exchange between August 19, 1998 and November 9, 2000, inclusive (the "Class Period"); and

that a summary notice of the hearing substantially in the form approved by the Court was

published in the national edition of The Wall Street Journal , L'Echo and De Financieel-

Economische Tijd pursuant to the specifications of the Court; and the Court having considered

and determined the fairness and reasonableness of the award of attorneys' fees and expenses

requested; and all capitalized terms used herein having the meanings as set forth and defined in

the Stipulation.

NOW, THEREFORE, IT IS HEREBY ORDERED THAT:

1. The Court has jurisdiction over the subject matter of the Action, the Lead

Plaintiffs, all Class Members, and Dexia.

2. The Court certifies the Class for settlement purposes only under Fed. R. Civ. P. 23

(a) and (b)(3) and, for that purpose, finds: the number of Class Members is so numerous that

joinder of all members thereof is impracticable; there are questions of law and fact common to

the Class; the claims of the Plaintiffs are typical of the claims of the Class they seek to represent;

the Plaintiffs have and will fairly and adequately represent the interests of the Class; the

questions of law and fact common to the members of the Class predominate over any questions

affecting only individual members of the Class; and a class action is superior to other available

methods for the fair and efficient adjudication of the controversy. Pursuant to Rule 23 of the

Federal Rules of Civil Procedure, Lead Plaintiffs Hans A. Quaak, Attilio Po and Karl Leibinger,

and named plaintiffs Joseph Pincus Revocable Trust, Rodman Heubach, and John and Eleanor

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Case 1:03-cv-11566-PBS Document 477

Stickevers are certified as Class Representatives.

Filed 06/22/2007 of 10

3. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and for purposes of

this Settlement only, this Court hereby certifies this action as a class action insofar as the Action

relates to the claims asserted by the Class against Dexia on behalf of all Class Members who,

between August 19, 1998 and November 9, 2000, inclusive, purchased the common stock of

L&H on the NASDAQ Stock Exchange or who purchased L&H call options or sold L&H put

options on any United States -based options exchange . Excluded from the Class are : (i) the

KPMG Defendants , any partners or principals of KPMG LLP or KPMG Belgium, members of

their immediate families and their legal representatives, heirs, successors or assigns, and any

predecessors or successors of KPMG LLP or KPMG Belgium and any entity in which any of the

above persons or entities have or had a controlling interest; (ii) KPMG International and all

KPMG International member firms; (iii) immediate family members of Paul Behets and his legal

representatives, heirs, successors or assigns; (iv) L&H and any predecessors or successors of

L&H; (v) the officers and directors of L&H, members of their immediate families and their legal

representatives, heirs, successors or assigns and any entity in which any of the above persons or

entities have or had a controlling interest ; (vi) the Transactional Plaintiffs, Rocker Plaintiffs and

Trustee Plaintiffs; and (vii) Dexia, its affiliates, parents, subsidiaries, predecessors (including, but

not limited to, Artesia Banking Corporation, S.A., Artesia Securities, S.A., Banque Paribas

Belgium and Bacob Bank C.V.), successors and assigns and any current or former partners,

principals, directors or officers of Dexia. Also excluded from the Class are the persons and/or

entities that requested exclusion from the Class as listed on Exhibits A and B annexed hereto.

4. The Persons listed on Exhibit A hereto have properly excluded themselves from


the Class. The Persons listed on Exhibit B hereto have filed requests for exclusion from the

Class that did not provide all of the information requested in the Notice concerning their

transactions in L&H Securities during the Class Period. To the extent that those individuals

listed on Exhibit B are member of the Class, they are deemed to have properly excluded

themselves from the Class and these Settlements. All persons listed on the Exhibits A and B are

not bound by this Final Judgment, and they shall not share in the benefits of the Class

Settlements.

5. Notice of the pendency of this Action as a class action and of the proposed

Settlement was given to all Class Members who could be identified with reasonable effort, The

form and method of notifying the Class of the pendency of the action as a class action and of the

terms and conditions of the proposed Settlement met the requirements of Rule 23 of the Federal

Rules of Civil Procedure , Section 21D(a)(7) of the Securities Exchange Act of 1934, 15 U.S.C.

§ 78u-4(a)(7), due process, and any other applicable law, constituted the best notice practicable

under the circumstances, and constituted due and sufficient notice to all persons and entities

entitled thereto.

6. The Settlement is approved as fair, reasonable and adequate, and the parties are

directed to consummate the Settlement in accordance with the terms and provisions of the

Stipulation.

7. The claims asserted by Lead Plaintiffs and the Class against Dexia in the

Complaint, which the Court finds was filed on a good faith basis in accordance with the PSLRA

and Rule 11 of the Federal Rules of Civil Procedure based upon all publicly available

information, are hereby dismissed with prejudice and without costs , except as provided in the

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Case 1 : 03-cv-11566-PBS Document 477 Filed 06/22/2007 of 10

Stipulation.

8. Members of the Class and the successors and assigns of any of them are hereby

permanently barred and enjoined from instituting, commencing or prosecuting all claims

(including "Unknown Claims" as defined in California Civil Code Section 1542), demands,

rights, liabilities, and causes of action of every nature and description whatsoever against the

Released Parties, whether known or unknown, whether or not concealed or hidden, wherever

asserted or that could be or could have been asserted, including, without limitation, claims for

negligent misrepresentation, fraud, aiding and abetting or violations of any state, federal or

foreign law, statutes, rules or regulations, that arise out of or relate to the Class Members'

purchases of L&H common stock on the NASDAQ Stock Market during the Class Period or

purchases of call options to acquire L&H common stock or sales of put options related to L&H

common stock on any United States-based options exchange during the Class Period , except

claims relating to the enforcement of the Settlement of the Action (the "Settled Claims").

"Released Parties" means Dexia, its predecessors (including, but not limited to, Artesia Banking

Corporation, S.A., Artesia Securities , S.A., Banque Paribas Belgium and Bacob Bank C.V.),

successors and assigns and past or present related entities or corporations (including, but not

limited to, Dexia S.A. and its subsidiaries or affiliates) as well as each of their current or former

partners, principals, directors, officers, employees, attorneys, agents, insurers, co-insurers, and

reinsurers. It is understood that no named defendant in In re Lernout & Hauspie Sec. Litig., 00-

CV-11589 (PBS) constitutes a Released Party within the meaning of this Order. The Settled

Claims are hereby compromised, settled, released, discharged and dismissed as against the

Released Parties on the merits and with prejudice by virtue of the proceedings herein and this

Case 1:03-cv-11566-PBS Document 477

Order and Final Judgment.

Filed 06/22/2007 of 10

9. The Released Parties, and the successors and assigns of any of them, are hereby

permanently barred and enjoined from instituting, commencing or prosecuting, either directly or

in any other capacity, any and all claims, rights or causes of action or liabilities whatsoever which

arise out of or relate in any way to the institution, prosecution, or settlement of the Action,

whether based on federal, state, local, statutory or common law or any other law, rule or

regulation , including both known claims and Unknown Claims, that have been or could have

been asserted in the Action or any forum by the Released Parties or any of them or the successors

and assigns of any of them against any of the Lead Plaintiffs, Joseph Pincus Revocable Trust,

Rodman Heubach, or John and Eleanor Stickevers, or their attorneys, except claims relating to

the enforcement of the settlement of the Action (the "Settled Defendant's Claims"). The Settled

Defendant's Claims of all of the Released Parties are hereby compromised, settled, released,

discharged and dismissed on the merits and with prejudice by virtue of the proceedings herein

and this Order and Final Judgment.

10. "Unknown Claims" means any and all Settled Claims which any Plaintiff or Class

Member does not know or suspect to exist in his, her or its favor at the time of the release of the

Released Parties, and any Settled Defendant's Claim which any Released Party does not know or

suspect to exist in its favor, which if known by it might have affected its decision(s) with respect

to the Settlement. With respect to any and all Settled Claims and Settled Defendant's Claims,

the parties stipulate and agree that, upon the Effective Date, the Plaintiffs, each Class Member

and each Released Party shall be deemed to have, and by operation of the Judgment shall have,

expressly waived any and all provisions , rights and benefits conferred by Cal. Civ. Code § 1542

6


or any law of any state or territory of the United States, or principle of common law, which is

similar, comparable, or equivalent to Cal. Civ. Code § 1542, which provides:

A general release does not extend to claims which the creditor does not know or suspect

to exist in his favor at the time of executing the release, which if known by him must

have materially affected his settlement with the debtor.

Plaintiffs and Dexia acknowledge, and Class Members and the Released Parties by operation of

law shall be deemed to have acknowledged, that the inclusion of "Unknown Claims" in the

definition of Settled Claims and Settled Defendant's Claims was separately bargained for and

was a key element of the Settlement.

11. This Judgment bars all future claims for contribution, whether arising under state,

federal, foreign or common law: (a) against the Released Parties by any person or entity based

upon, arising out of, relating to, or in connection with the Settled Claims of any Class Member,

or (b) by the Released Parties against any person or entity in relation to the Payment.

12. Neither this Order and Final Judgment , the Stipulation , nor any of its terms and

provisions, nor any of the negotiations or proceedings connected with it, nor any of the

documents or statements referred to therein shall be:

(a) offered or received against the Released Parties as evidence of or construed as

or deemed to be evidence of any presumption, concession, or admission by the Released Parties

with respect to the truth of any fact alleged by Plaintiffs or the validity of any claim that had been

or could have been asserted in the Action or in any litigation, or the deficiency of any defense

that has been or could have been asserted in the Action or in any litigation, or of any liability,

negligence, fault, or wrongdoing of the Released Parties;

(b) offered or received against the Released Parties as evidence of a presumption,

7


concession or admission of any fault, misrepresentation or omission with respect to any

statement or written document approved or made by the Released Parties, or against the Plaintiffs

or any Class Member as evidence of any infirmity in the claims of Plaintiffs or any Class

Member;

(c) offered or received against the Released Parties or against the Plaintiffs or any

Class Member as evidence of a presumption, concession or admission with respect to any

liability, negligence, fault or wrongdoing, or in any way referred to for any other reason as

against any of the parties to the Stipulation, in any other civil, criminal or administrative action

or proceeding, other than such proceedings as may be necessary to effectuate the provisions of

the Stipulation; provided, however, that the Released Parties, Plaintiffs and their counsel may

refer to the Stipulation to effectuate the liability protection granted to them thereunder;

(d) construed against Released Parties or the Plaintiffs or any Class Member as an

admission or concession that the consideration to be given hereunder represents the amount

which could be or would have been recovered after trial; or

(e) construed as or received in evidence as an admission, concession or

presumption against Plaintiffs or any Class Members or any of them that any of their claims are

without merit or that the damages recoverable by them would not have exceeded the Payment.

13. The Plan of Allocation is approved as fair and reasonable, and Plaintiffs' Lead

Counsel and the Claims Administrator are directed to administer the Stipulaton in accordance

with its terms and provisions.

14. The Court finds that all parties and their counsel have complied with each

requirement of Rule 1 i of the Federal Rules of Civil Procedure as to all proceedings herein.

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Case 1:03-cv-11566 -PBS Document 477 Filed 06/22/2007 of 10

15. Plaintiffs ' Counsel are hereby awarded -QAM of the Gross Settlement Fund in

1, t1o, Cv3`f.1+0fees , which the Court finds to be fair and reasonable, and $ in reimbursement of

expenses, which expenses shall be paid to Plaintiffs' Lead Counsel from the Escrow Account

with interest from the date such Escrow Account was funded to the date of payment at the same

net rate that the Escrow Account earns. The award of attorneys' fees shall be allocated among

Plaintiffs' Counsel in a fashion which, in the opinion of Plaintiffs' Lead Counsel, fairly

compensates Plaintiffs' Counsel for their respective contributions in the prosecutionsth901

e

Action. In addition, I hereby approve Lead Counsel's request for the payment of $ from

the settlement fund to the Claims Administrator for fair and reasonable costs incurred to date in

providing notice to the Class.

16. Plaintiffs are hereby awarded the following sums to be paid out of the Settlement

Fund for reasonable costs and expenses directly relating to their representation of the Class,

which the Court finds to be fair and reasonable:

a. Hans A. Quaak is awarded $

b. Attilio Po is awarded $ 5+

c. Karl Leibinger is awarded $ '

d. Rodman Heubach is awarded $ and'

-00e. John and Eleanor Stickevers are awarded $ ^0 intotal.

17. Exclusive jurisdiction is hereby retained over the parties and the Class Members

for all matters relating to this Action, including the administration, interpretation, effectuation or

enforcement of the Stipulation and this Order and Final Judgment, and including any application

for fees and expenses incurred in connection with administering and distributing the settlement

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Case 1 : 03-cv-11566-PBS Document 477 Filed 06/22/2007 of 10

proceeds to the members of the Class.

18. Without further order of the Court, the parties may agree to reasonable extensions

of time to carry out any of the provisions of the Stipulation.

19. There is no just reason for delay in the entry of this Order and Final Judgment

because entry of the Order and Final Judgment will facilitate the resolution of this Action against

Dexia and will limit the expenditure of the resources of the Parties and the Court. Accordingly,

immediate entry by the Clerk of the Court is expressly directed pursuant to Rule 54(b) of the

Federal Rules of Civil Procedure.

Dated : Bost

n---Z-

Massachusetts, 2007

HO ORABLE PATTI B. SARISUNITED STATES DISTRICT JUDGE

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Case 1:03-cv-11566-PBS Document 477-2 Filed 06/22/2007 Page 1 of 4

EXHIBIT APERSONS OR ENTITIES WHO

SUBMITTED TIMELY, VALID REQUESTS FOR EXCLUSION

1. Marisa Sementilli2. Melle B. Dominicy3. Leonard De Smedt4. Pierre Derycke5. Denise Grymonprez6. Leonie Deprez7. Robert Soetaerts8. Alfred Demarez9. Paul Degreef10. Lucas Jacques11. Bruno Ronneau12. Pol Andre Nolf13. Dirk Sterckx14. Francois Willemen15. Andre Foulon16. Steven Stockman17. Bogaert Thes18. Crol Hendrik19. Johanna Minten20. Andre Hoffman21. Luc Vangansbeke22. Jacques Lecluse23. Augustyn Verlinden24. Jozef Janssens25. Alfred Erauw26. Vincent Sablon27. Francis Gregoire28. Georges De Batselier29. B. Van Kempen30. S. Taams31. Michiels Armand32. B. V. Montensbeheer33. Emiel Van Droogenbroeck34. Eric Reyntens35. Gerard Barrallie36. Gillham De Wint37. No Smeets38. Jacques and Patrick Delbeke39. Marcel Mestdagh40. Marcus Verstraete41. Mireille Matthys

42. R. Larbouillat

Case 1 : 03-cv-11566 -PBS Document 477-2 Filed 06/22/2007 Page 2 of 4

43. Serafino Queretti44. Slaus Van Den BrQeck45. Walter Maes46. Dirk Vorsselmans47. Eddy Riviere48. Jacques Dondelet49. Johny Maervoet50. Petrus Van de Straeten51. Roland Debruyne-Boussemaere and L. Boussemaere52. Stefan Bolsius53. Tanja Maervoet54. Collier Philemon55. Hvan Walsem56. Jacqueline Hannot57. Mary Therese Thieleman58. Nicola Castellano and Mr. Anciaux59. Yves Evenepoel60. Adrienne De Winter61. Leon Messiaen62. Linda Cnudde63. Constant Verbeke64. Dirk Imbert65. Dr. Marc De Groote66. Edgard Timperman67. Edward Van Hollebeke68. Fernand Van Assche69. Frans Schroven70. Gabriel Van Rompaey71. Dr. Herman Geuens72. Jaques Dorien73. Jacques Timperman74. Jozeph Clijsters75. Katia Thomas76. Koen De Baets77. Kris De Vlieger78. Leon Bergmans79. Luc Brasseur80. Ludo Willems81. Marc Deleu82. Maria E. L. Gilberte Devadder83. Martine Franssens84. Michael Lievens85. Patrick Faes

86. Paul Floryn87. Philippe Bister88. Qeert Vangendten


89. Raf Stroobaut90. Ronald Teunkens91. Stas Valere92. Stephane Ledoux93. Stephanie Lievens94. Andrianne Pierre95. Alberto Negrete96. Andre Cazin97. Annie Spleers98. Arturo Prietro Fernandez99. Carine Cnudde and Jo Lievens

100. Carine Cnudde101. A. Van Dermeeren102. Achille Van De Sande103. Alain Pahlavouni104. Alexandre Oberink105. Arthur Deltour106. Daniel Lavens and Marie-Jose Himpe107. David Claes108. Dirk Kerkhof (for V.O.F. Kerkhof-De Greef)109. Eddy Van Kerhove110. Eric Dumont111. Eric Timperman112. Francis Ameryckx113, Francis Bieseman114. Gilissen115. Hendrik Lefebyre116. Henk Oberink117. Ivan Zwaenepoel118. Jeanne De Chantal Van Acker119. Jean-Pierre Depoorter120. Jonny De Lauw

121. Joseph Diereck

122. Jozef Vandlick

123. K. Van Ombergen

124. Lea Kenohiks

125. Marc Derveaux

126. Marc Heyvaert

127, Marc Wautier

128. Marita Merckx

129. Mathieu Tores

130. Michel Geens

131. Michel Huveners132. Paul Caeyers

133. Paul Henricot134. Paul Raick


135. Peter Herman136. Pierre Gomree1 3 7. IngridVanstraelen138. Rob Exelmans139. Simonne Oijseoom140. Steven Stockman-Derycke141. Vanessa Oberink142. Willy Gerolt143. Werner Cornette144. Willy Van Renterghem145. Lucien Van den Haute146. Regis Nury147. Joseph C. and Lina Fonte

Case 1:03-cv-11566-PBS Document 477-3 Filed 06/22/2007 Page 1 of 1

EXHIBIT BPERSONS OR ENTITIES WHO SUBMITTED

TIMELY, BUT DEFICIENT REQUESTS FOR EXCLUSION

1. Erna Beck2. Margareta Hoorens3. Frans Thevelin4. Marleen Lembrechts5. Raymond De Clercq6. Marie-Jeanne Reygaert7. Mr. & Mrs. Em Clercux-Daumerie8, Rene Demoulin9. Pietro Blanchietti10. Jan Van Dingenen11. Eric Van Damme and G. Vanneste12. Joris Verschelde13. Andrea Lievens14. Andre Huysmans15. Jacqueline Styfhals16. Joseph Devooght17. Luc Geysskens and Michael and Linda Vanwesemael18. Stefaan Cardoen

photo courtesy of chautauqua institution

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