Darrell D. and Jane E. Moran - Page 4

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          Department.  Attorney San Souci explained that he had been hired            
          to review Holnam’s proposed separation agreement with petitioner,           
          and he also pointed out that petitioner and his wife had suffered           
          due to Holnam’s actions.  After setting forth the background,               
          beginning on page five of the letter, attorney San Souci outlined           
          the "Potential Liability Issues", which fell into the following             
          four categories:  Holnam’s conduct toward petitioner may be                 
          deemed (1) the "cause-in-fact" for a constructive discharge;                
          (2) a breach of express or implied promises of Holnam not to                
          reprimand, discipline, or discharge him, absent good or just                
          cause based on the parties’ long-term employment relationship;              
          (3) a breach of a covenant of good faith and fair dealing based             
          on Holnam’s supervisors’ treatment of petitioner; and (4) a                 
          violation of section 703(a)(1), title VII of the Civil Rights Act           
          of 1964 due to discrimination with respect to petitioner                    
          (petitioner is part Native American).  Attorney San Souci’s                 
          letter concluded with settlement proposals covering severance pay           
          and compensation; accrued unpaid vacation pay, bonuses, and                 
          expenses; continuation and conversion of medical, dental, life,             
          and disability insurance; 401(k) savings plan, pension, and stock           
          purchase plans; favorable future recommendations and recovery of            
          legal fees.                                                                 
               A settlement agreement was reached between petitioner and              
          Holnam on November 15, 1993, under which petitioner was to                  
          receive $5,336 per month for 4 months beginning after his                   



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