Reserves settlement - Questions and Answers

I. Timing and Process

How much money will I receive?

The amount of money a shareholder may be entitled to will be based upon the plan of allocation. It generally allocates the settlement proceeds based on when securities were purchased during the relevant period and when, if at all, they were sold. The Plan has been reviewed and approved by the Shell Reserves Compensation Foundation. The amounts to be paid also depend on the number of claims made and therefore at this point this is all we can say about this.

What does the binding declaration mean?

Shareholders who:

(i) purchased shares in the capital of Royal Dutch Petroleum Company and/or The “Shell” Transport and Trading Company, plc in the period as of 8 April 1999 up to and including 18 March 2004 at a stock exchange outside the United States; and

(ii) at the moment of the purchase, were not resident or established in the United States, might be entitled to a compensation.

Such shareholders do not have any other possible actions against Royal Dutch Petroleum Company and/or The “Shell” Transport and Trading, plc further to these purchase transactions, unless they declare in time that they do not want to be bound to the binding declaration.

What do I have to do now/What is the next step?

In October 2009, a notification about the binding declaration by the court and the actions to be taken was published in newspapers, announced on this website and on the other websites. The Foundation has a website called www.shellsettlement.com and the VEB (one of the Participants) have launched websites called  www.shellvergoeding.nl and www.shellcompensation.com. The shareholders registered with the administrator have received the notification and a claims form.

Copies of the notification and the claim form can be found on the Non US settlement - available documents page. In case you wish to receive a hard copy of the court decision, please contact the administrator.

If you feel you might be eligible to claim, you can fill out a claim form. If you do not want to be bound by the settlement agreement, you need to “opt-out”.

How can I benefit from the Settlement Agreement?

I.e. what does a shareholder need to do to receive money?
Whether you are entitled to claim depends on several factors, amongst others the timing of purchase and timing of sale, if any, of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, plc shares in the relevant period (April 8, 1999 through March 18, 2004, inclusive).

To benefit from the settlement agreement, shareholders will need to provide information and supporting documentation relating to their purchases and sales of Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, plc shares in the relevant period (April 8, 1999 through March 18, 2004, inclusive). The exact procedure is set out in the notification and the claim form which you can find on the Non US settlement - available documents page. In case you wish to receive hard copies of the notification and the claim form, please contact the administrator.

How can I opt-out?

You can opt-out by informing the administrator in the Non US Settlement that you do not want to be bound by the binding declaration by the court. The opt-out term will run until 28 February 2010. You can inform the administrator by sending a letter to Royal Dutch Shell Settlement Administrator, 128-129 Cheapside, London EC2V 6BT, Unitied Kingdom or sending an email to info@royaldutchshellsettlement.com.

If you wish to opt-out, it would be appreciated if you could indicate (i) at which date you bought the shares in Royal Dutch Petroleum Company and/or The “Shell” Transport and Trading Company, plc, (ii) if, and if so, at which date you sold such shares, (iii) the price at which you sold/purchased the shares, and (iv) at which stock exchange the sale/purchase took place. You are not obliged to provide the information requested.

How long until investors see the proceeds of the settlement?

Timing is uncertain. Now the agreement has been declared binding it will take a period of time – during which eligible shareholders will be given an opportunity to “opt-out” of the settlement, as well as to submit their claims if they chose not to opt out – before all settlement proceeds can be distributed.

The period to opt out will run until 28 February 2010. The period to file a claim will run until 5 November 2010. Upon expiry of this period, calculations of the amounts due to participating shareholders will need to be made. It is impossible to predict how long all of this will take, but based on the statutory requirements a distribution will not occur until sometime beginning 2011 at the earliest.

Why will it take so long for investors to receive their money?

Under the applicable Dutch law, if the Court declares a settlement binding, investors will receive information on the terms and will be granted a period of time during which they can consider whether they want to participate in the settlement or “opt–out”.  In addition, Dutch law requires that investors have a year to file their claim after the Court issues a binding declaration.  Once all claims have been received, the settlement administrator, with oversight by the Foundation, will calculate the amounts due to participating investors and distribute the settlement relief accordingly.

Can I receive a copy of the Settlement Agreement?

Yes, a copy is available via the Shell website as well as via the websites of the other parties. The Foundation has a website called www.shellsettlement.com and the VEB (one of the Participants) have launched websites called www.shellvergoeding.nl and www.shellcompensation.com.

Can I receive a copy of the court decision declaring the Settlement Agreement binding?

Yes, a copy is available via the Shell website as well as via the websites of the other parties. The Foundation has a website called www.shellsettlement.com and the VEB (one of the Participants) have launched websites called www.shellvergoeding.nl and www.shellcompensation.com. In case you wish to receive a hard copy of the court decision, please contact the administrator.

Is there more money available if more shareholders join?

No, the payments made by Shell in the settlement will be as announced.  The allocation of those payments to investors who file claims in the settlement process will be made pursuant to the terms of a Plan of Allocation submitted to the Amsterdam Court of Appeals and under the oversight of the Foundation.

I already submitted information in relation to the SEC Settlement.

Do I need to fill out another claim form and submit the information again?

Upon consultation between the administrator for the Non US Settlement and the administrator for the SEC Settlement it appeared that the information on the claim forms provided in the SEC Settlement cannot be used for the claims under the Non US Settlement. For that reason, you have to fill out a new claim form and submit the information requested. However, we advise you to contact the administrator for the Non US Settlement to discuss whether you can use copies of the proof you submitted in the SEC Settlement. Contact details of the administrator.

II. Substance of the Settlement/Announcement

How were the settlement amounts arrived at?

The settlement is the result of negotiations between Shell and the participating members of the Foundation.

Who are members of/what is the Shell Reserves Compensation Foundation?

The June 23, 2005 Dutch law, Wet collectieve afwikkeling massaschade, stipulates the creation of a foundation to represent the interests of covered investors. The foundation’s members include 52 European-based institutional investors (including ABP, PGGM, DEKA, UBS and Morley) as well as VEB and similar organizations representing individual shareholders from France, Sweden, Italy and Germany. The Foundation is governed by an independent Board of Directors, which includes professor M.J.G.C. Raaijmakers as its Chairman, professor M.J. Kroeze and G. Izeboud.

What is the purpose of the $12.5 million payment, is it part of the settlement?

The $12.5 million payment is to be distributed equally to all shareholders who submit a valid claim for relief, irrespective of the number of shares held by the person submitting a claim so pro rata over all persons or entities submitting a claim. The amount of the $12.5 million payment a shareholder is entitled to is therefore dependent of the number of claims that have been validly submitted. This additional amount and the way this is to be distributed is therefore likely to be of more interest to a person or entity holding a relatively low number of shares.

What is the purpose of the $6.25 million payment, to be used by VEB and other similar organisations?

The $6.25 million is to be used by VEB and other similar organizations to promote and actively encourage individual shareholders to submit claims for relief and to assist shareholders in making claims for settlement relief.