Norit to Receive $40.5 Million Settlement from ADA

Norit Americas Inc. announced today that it has accepted a settlement offer from ADA-ES, Inc. ADES in reference to a three-person independent arbitration panel's decision, which found ADA and two former Norit employees John Rectenwald and Steve Young, liable for theft of trade secrets and breach of contract. Under the terms of the settlement, ADA-ES will pay Norit $33,000,000 immediately, followed by an additional $7,500,000 over three years. The Arbitration Panel will also enter a Stipulated Final Award governing the administration of the running royalty previously ordered by the Panel over an eight year period. The Stipulated Final Award confirms that ADA-ES and other defendants shall pay Norit a royalty of 10.5% for three years and 7.0% for a further five years on all activated carbon sales at any existing or future facility that uses the Norit trade secrets in any material respect. Royalties earned to date will be paid immediately upon dismissal of the outstanding actions. The settlement agreement and related arbitration awards close all remaining claims and outstanding litigation. This settlement agreement compensates Norit for this theft, and requires ADA and the other defendants to maintain the confidentiality of Norit's trade secrets.