Ronald W. Ramey and Joni J. Ramey - Page 5




                                         -4-                                          
                         the total of the calculated back wages for                   
                         the class.                                                   
                         (10) The sum of the participation allocation,                
                         the back wages allocation and the liquidated                 
                         damages allocation equals each individual’s                  
                    “Total Recovery.”                                                 
                         (11) From the individual’s total recovery the                
                         contractual attorney fee is then subtracted.                 
                         (12) Each individual is then allocated a                     
                         share of the costs of the litigation based on                
                         the same ratio as that person’s total                        
                         recovery to the total settlement proceeds.                   
                         That share of the costs is then subtracted.                  
               The settlement allocation was approved by the court on                 
          January 20, 1995.  On January 21, 1995, the plaintiffs entered              
          into a settlement agreement and release.  The agreement contains            
          the statement that “All Settlement Proceeds are paid to the                 
          Plaintiffs on account of personal injuries”.  (Emphasis added).             
          Moreover, the release contains the following paragraph:                     
                    3. Release of PayLess by the Plaintiffs                           
                    In exchange for the payment of the amount set forth in            
                    paragraph 7 below * * * Plaintiffs * * * hereby release           
                    and discharge PayLess * * * from all actions, claims,             
                    or demands for damages, liabilities, costs, or                    
                    expenses, which the Plaintiffs, individually or                   
                    collectively, have against PayLess on account of, or in           
                    any way arising out of the claims that were asserted or           
                    that could have been asserted in the Lawsuit by the               
                    Plaintiffs, which Lawsuit is hereby acknowledged as not           
                    fully plead, [sic] further including, but not limited             
                    to, claims for personal injuries, intentional                     
                    infliction of emotional distress, negligent infliction            
                    of emotional distress, and from all known claims,                 
                    whether based in tort, statute or contract, which are             
                    based in whole or in part, or arise out of, or in any             
                    way relate to:  (1) the Lawsuit; and (2) anything done            
                    or allegedly done by PayLess arising out of, or in                
                    conjunction with or relating to, the employment of any            
                    and/or all Plaintiffs prior to November 1, 1992 by                




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