IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF GUAM

______________________________

UNITED STATES OF AMERICA,

Plaintiff,

v.                          Civil Action No.

UNIVERSITY OF GUAM,

Defendant.

_______________________________

SETTLEMENT AGREEMENT

The United States of America ("United States") gave notice to the University of Guam ("University") (jointly, "the parties") of intent to file a Complaint to enforce the provisions of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e, et seq. ("Title VII"), based on charges of discrimination filed between September 1996 and March 1998 by eleven former employees ("charging parties") with the Equal Employment Opportunity Commission ("EEOC") that were subsequently referred to the Department of Justice, involving EEOC charge numbers: 370971277; 370970518; 370971065; 370970568; 370971025; 370971118; 370970390; 370970719; 370970852; 370970442; 370970101; 370970816; 370970307; and 370970872. In its Complaint, the United States alleges that the University discriminated against the charging parties by subjecting them to discriminatory terms, conditions and privileges of employment and discharging some of them based on race and/or national origin in violation of Section 703(a) of Title VII, as amended, 42 U.S.C. 2000e-2(a), and/or in retaliation for complaining about what was reasonably believed to be employment discrimination prohibited by Title VII, in violation of Section 704(a) of Title VII, as amended, 42 U.S.C. 2000e-3(a).

In response to the United States' notice of intent to sue the University, and while the University specifically and unequivocally denied the United States' allegations of violations of Title VII, the parties entered into settlement negotiations, including a voluntary mediation proceeding from March 10 - 14, 2003. During this mediation, the parties arrived at a tentative agreement on many of the terms of a mutually acceptable settlement agreement. The parties, desiring that this action be settled by an appropriate settlement agreement without the burden of protracted litigation, agree to personal and subject matter jurisdiction of this Court. Furthermore, the parties hereby waive, for the purposes of this Settlement Agreement ("Agreement") only, hearings and findings of fact and conclusions of law on all issues, and stipulate that this Agreement serves as a fair and full settlement of all issues raised in the Complaint filed in this case and that this Agreement is full, final and binding between the parties as to the issues raised in this Complaint. The parties acknowledge that this Court has not reached findings on or otherwise adjudicated the issues raised in this Complaint. This Agreement shall not be construed as an admission of violation of law or of any legal fault by the University, nor any adjudication or finding of any wrongdoing or violation of any applicable federal or Guam law or regulation. This Agreement sets forth the entire agreement between the parties.

In resolution of this action, the parties hereby AGREE and the Court expressly APPROVES, ENTERS and ORDERS the following:

A. SPECIFIC RELIEF

B. GENERAL RELIEF

Complaint and Investigation Procedure

Issuance and Distribution of Policy Prohibiting Discrimination

Based on Race, National Origin and Retaliation

Employment Discrimination Training

C. COMPLIANCE

D. NOTICE

William B. Fenton
Jenny R. Yang
U.S. Department of Justice
Civil Rights Division
Employment Litigation Section
950 Pennsylvania Avenue, NW
Washington, D.C. 20530;

or, if by overnight delivery service:

William B. Fenton
Jenny R. Yang
U.S. Department of Justice
Civil Rights Division
Employment Litigation Section
601 D Street, NW, Room 4038
Washington, D.C. 20004

Michael J. Vartain, Esq.
Vartain Law Group
601 Montgomery Street
Suite 300
San Francisco, CA 94111-2660

E. JURISDICTION OF THE COURT

Agreed and Consented to:

On behalf of Plaintiff

United States of America

RALPH F. BOYD, Jr.
Assistant Attorney General

___________________________
WILLIAM B. FENTON
JENNY R. YANG
Attorneys
U.S. Department of Justice
Civil Rights Division
Employment Litigation Section 950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530

Dated:__________________________

_____________________________
LEONARDO M. RAPADAS
United States Attorney
MIKEL W. SCHWAB
Civil Chief
Pacific News Bldg.
238 Archbishop Flores St., Ste 502-A
Agana, Guam 96910

Dated: _____________________

_______________________________
University of Guam

Dated:_________________________

Approved as to form:

______________________________
MICHAEL J. VARTAIN
Vartain Law Group
601 Montgomery Street, #300
San Francisco, CA 94111-2660
Attorneys for University of Guam

Dated:__________________________

DONE AND ORDERED this ________ day of ______________, 2003.

_______________________________
UNITED STATES DISTRICT JUDGE

APPENDIX A

RELEASE OF ALL CLAIMS
For and in consideration of the acceptance of all or any part of the relief offered to me by the University of Guam, pursuant to the provisions of the Settlement Agreement between the United States and the University of Guam dated __________ and approved and entered by the Honorable _________, United States District Judge, on ___________ in United States v. University of Guam, Civil Action _______ (D. Guam), I, ____________, on behalf of my heirs, successors and assigns, forever release and discharge the University of Guam and all its past, current, and future officers, attorneys, consultants, agents, representatives, employees, contractors, faculty members, staff, boards, trustees, affiliates and affiliates' employees and officers, and all successors and assigns ("Releasees") of and from any and all damages, claims, charges, causes of action, grievances, complaints, indemnities and obligation, including but not limited to those which are based upon any other territory or federal law, and any other contract, tort, retaliation, constitutional, and/or any employment-related, and/or any other claims directly or indirectly arising out of, or in any way connected to the Complaint filed in the above civil action and EEOC charge nos. ______________, which accrued prior to the date of this Release. This Release shall be a complete bar to any claims asserted in contravention of it, no matter the forum.

I further agree that I will not institute a civil action or seek to intervene against the University of Guam in any pending civil action alleging employment discrimination on the basis of EEOC charge number(s) ____________, or any other EEOC charges filed before the date of this release, or the Complaint in Civil Action ___________, or any of the facts alleged in EEOC charge number(s) ________________ or any other EEOC charge or Complaint filed before the date of this release against the University of Guam and/or any of its agents, employees, University Board of Regents members, officials, designees, and predecessors and successors in interest.

I understand that the relief to be given to me, including the payment to me of any monetary amount, does not constitute an admission by the University of Guam of the validity of any claim raised by me or on my behalf.

This release constitutes the entire agreement between the University of Guam and myself, without exception or exclusion. I am aware I will not receive an offer of employment with the University.

I acknowledge that a copy of the Settlement Agreement in this action has been made available to me for my review.

I HAVE READ THIS RELEASE AND UNDERSTAND THE CONTENTS THEREOF, AND I EXECUTE THIS RELEASE OF MY OWN FREE ACT AND DEED.

Signed this ________ day of __________, _____. _________________________________

[Name]

Social Security No. ______________

Subscribed and sworn to before me this

______________ day of __________, _____

_____________________________

Notary Public

My commission expires: _______

APPENDIX B

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED

[insert name and address of charging parties]

Re: United States of America v. University of Guam
Civ. Act. No. (D. Guam)

Dear Dr./Mr./Ms.________:

The United States and the University of Guam ("University") have entered into a Settlement Agreement settling the case of United States v. University of Guam, Civil Action No. ___ (D.Guam). A copy of the Settlement Agreement, which was executed by the United States and the University in __________ and approved and entered by the Court on ________, is enclosed.

Pursuant to the Settlement Agreement, the University is offering a total monetary amount to be divided among the charging parties. The amount payable to you has been designated by the United States to be $ __________. You should be aware that all or a portion of the monetary amount may be subject to federal, state and/or local tax, for which you would be responsible. [The University also is offering to remove all copies from your personnel file of any negative performance evaluations written during the period of January 1, 1997 until the end of your employment with the University.] [The University also is offering to insert a change in your personnel file at the University to record your termination from the University as a resignation from the University.]

In order to accept the University's offer, you must execute the enclosed release and return it, within thirty (30) days of your receipt of this letter, to counsel for the United States at the following address:

William B. Fenton
Jenny R. Yang
Attorneys
Employment Litigation Section
Civil Rights Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, D.C. 20530

Counsel for the United States will, in turn, forward a copy of your executed release to the University in care of its counsel.

[The University will cause its bank escrow account to pay the first installment of the monetary amount offered to you within fifteen (15) days of its receipt of your executed release. Subsequent payments will be forwarded to you no later than October 31, 2003, October 31, 2004 and October 31, 2005. Interest at the rate of 3% will begin to accrue on the unpaid portion of the overall monetary amount as of November 1, 2003. This interest will be included in your payments of October 31, 2004 and October 31, 2005.] [You have informed the parties that you do not desire any monetary relief in the settlement of your charge. However, the University has agreed to forgive any outstanding balance on your Protech Award and to forgive at least a portion of a University grant award to a third party identified by you to the University.]

If you decline the relief offered by the University, the University will nevertheless have satisfied its obligation to the United States pursuant to the Settlement Agreement, and the United States will not seek additional relief on your behalf.

If you have any questions concerning the Settlement Agreement or the University's offer to you, you may contact one of the following attorneys at the U.S. Department of Justice:

William B. Fenton
Jenny R. Yang
Attorneys
Employment Litigation Section
Civil Rights Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, D.C. 20530
(202) 307-3925 or (202) 514-3168

Mikel W. Schwab
Civil Chief
Pacific News Bldg.
238 Archbishop Flores St., Ste 502-A
Agana, Guam 96910
(318) 262-6618

Sincerely,

David J. Palmer
Chief
Employment Litigation Section
By:

Jenny R. Yang
Senior Trial Attorney
Employment Litigation Section

cc: Mikel Schwab, AUSA
Michael J. Vartain, Esq.
Enclosures

APPENDIX C

UNIVERSITY OF GUAM

POLICY FOR EQUAL EMPLOYMENT OPPORTUNITY AND

NON-DISCRIMINATION/NON-HARASSMENT

Intent: The University is committed to maintaining the campus community as a place of work and study for faculty, staff and students, free of all forms of discrimination and harassment that are unlawful under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e, et seq., or other applicable law. The University prohibits unlawful discrimination or harassment against any member(s) of the University community including faculty, student-employees, staff and administrators and applicants for such positions. Students (including student-employees) should also review the policies as summarized in the student handbook, and faculty should consult the faculty collective bargaining agreement. In case of questions or concerns regarding this Policy, please contact the University's Equal Employment Opportunity Office (insert name address and telephone number) or the University's Senior Vice President (insert name address and telephone number).

No Discrimination/ No Retaliation: The University is an equal opportunity employer and is firmly committed to non-discrimination in its hiring, termination, compensation, promotion decisions and in all other employment decisions and practices and in the application of its personnel policies and collective bargaining agreements. In compliance with all applicable laws, except where a bona fide occupational qualification exists, employment decisions will be made irrespective of the employee's or applicant's race, color, religion, religious creed, national origin, age (except for minors), gender, citizenship status, military service status, and/or any other status protected by law. This Policy prohibits retaliation because one has in good faith filed a complaint concerning behavior prohibited by this policy, or has reasonably opposed, reported or stated the intent to report such behavior or is participating in a related investigation, proceeding or hearing regarding such a matter.

All members of the University community must comply with this policy. The University will take prompt and effective corrective action in response to any complaint showing a violation of this policy.

The University will reasonably accommodate qualified individuals with disabilities as defined by federal law if the individual is otherwise qualified to safely perform all essential functions of the position and if it will be done without undue hardship to the University.

The University's policy is supported by, and consistent with federal law. This policy thus accepts the mandate set forth in Titles VI and VII of the Civil Rights Acts of 1964 and Title IX of the Educational Amendments of 1972.

No Harassment: Harassment based on race, gender, national origin, color, religion, religious creed, age, disability, citizenship status, military service status, or any other status protected by law, is prohibited by University policy. Prohibited harassment in any form, including verbal and physical conduct, visual displays, threats, demands and retaliation is a violation of this policy and will not be tolerated.

Prohibited acts that constitute harassment take a variety of forms. Examples of the kinds of conduct that may constitute harassment include, but are not limited to: