Durnford Distribution Formula

UNITED STATES OF AMERICA
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
WASHINGTON FIELD OFFICE

LAWRENCE D. DURNFORD
and MARK GLICKMAN
Class Agents,

v.

JOHN ASHCROFT, Attorney General,
U.S. Department of Justice,
Agency.

EEOC Case No. 100-2000-07059X*
* formerly EEOC Case No. 100-A0-7059X
Agency Case No. B-96-2206
_________________________________

FORMULA FOR THE DISTRIBUTION OF
SETTLEMENT FUNDS TO CLASS MEMBERS

Pursuant to a settlement reached between the Class and the U.S. Department of Justice in this matter (the “settlement agreement”), $7,533,334 (seven million, five hundred thirty-three thousand, three hundred thirty-four dollars) is available to pay all claims to members of the Class. This Distribution Formula describes how the monetary relief referred to in Section IV of the settlement agreement shall be distributed. The Claims Administrator shall calculate the amount of money to be paid to each Class Member under the settlement agreement.

I. PRELIMINARY DETERMINATIONS.

The Claims Administrator shall first consider the eligibility of Claimants to receive compensation under the settlement agreement. This determination includes satisfaction of two factors: the Class definition, and the minimum qualifications for Immigration Judge positions in 1994-95. In order to be eligible to receive compensation under the settlement agreement, a Claimant must satisfy these two factors.

A. Class Definition.

The Class definition, as decided by the EEOC Administrative Judge in this matter, is: “White male applicants for employment not selected as Immigration Judges during 1994 and 1995.” Thus, a Claimant must establish to the Claims Administrator that he is a white male who maintained an active application for an Immigration Judge vacancy available in 1994 or 1995, and that he was not selected during that period. A Claimant must establish that he submitted an application for an Immigration Judge vacancy on or before October 30, 1995. Each Claimant is required to provide a sworn statement to establish that he is a Class Member, as provided in the Claim Form and Release attached hereto.

(NOTE: Applications for Immigration Judge positions posted on October 31, 1995 or later are not covered by this case.)

The Claims Administrator shall presume that a Claimant meets the Class definition if the claimant is a white male and the name of the Claimant is included in at least one of four categories of documents which were produced by the U.S. Department of Justice to Class Counsel during discovery in this matter. The four categories of documents are: (1) pending report candidate lists, (2) a list of candidates placed in the file of active applicants, (3) a list of applicants deemed not sufficiently qualified, and (4) a list of candidates organized by location preference. Copies of these documents shall be provided to the Claims Administrator for the purpose of identifying Class Members and locations for which Class Members applied.

If a Claimant’s name is not included in one of the U.S. Department of Justice lists, the Claims Administrator shall presume that the Claimant is not a Class Member. Claimants who are not included in the U.S. Department of Justice lists must provide additional documentation to overcome the Claims Administrator’s presumption. For example, the Claimant may provide a copy of his application for employment, a copy of a letter relating to his application for employment, or a sworn statement from another individual who can establish that the Claimant meets the Class definition. The Claimant must swear to the authenticity of the supporting documents in his sworn statement. It is within the Claims Administrator’s sole discretion to determine if a Claimant meets the Class definition.

B. Minimum Qualifications for Immigration Judge Position.

The U.S. Department of Justice vacancy announcements in 1994 and 1995 set out the minimum qualifications for applicants. Each Claimant must establish to the Claims Administrator that he satisfied all of the minimum qualifications for an Immigration Judge position in order to be eligible to receive compensation under the settlement agreement.

In order to meet the minimum qualifications for an Immigration Judge position, a Claimant must show that he:

1) Earned an L.L.B. or J.D. degree prior to October 30, 1995;

2) Was a member in good standing with the bar of any state or the District of Columbia at the time he applied for an Immigration Judge position and at all subsequent times during the period January 1, 1994 to October 30, 1995 during which he had an application pending; and

3) Had on October 30, 1995 at least 6 ½ years of legal experience following admission to the bar of any state or the District of Columbia.

A Claimant may establish that he meets the minimum qualifications for an Immigration Judge position with his sworn statement to the Claims Administrator. If a Claimant fails to establish that he meets the minimum qualifications for an Immigration Judge position, he will not be eligible to receive compensation under the settlement agreement. It is within the Claims Administrator’s sole discretion to determine if a Claimant meets the minimum qualifications for an Immigration Judge position.

II. COMPENSATION POINT DETERMINATIONS.

The fund for compensating Class Members is made up of $7,533,334. The money is available to the Class to provide compensation for earnings lost as a result of non-selection of Class Members, compensatory damages suffered as a result of non-selection of Class Members, contribution to the litigation of this matter, and any and all other claims by Class Members relating in any way to this case (except that fees and costs to Class Counsel are not included in the fund of $7,533,334). Once a Claimant has satisfied the Preliminary Determinations discussed above in Section I, the Claimant is considered to be a Class Member, and is eligible to receive compensation pursuant to the settlement agreement. Based on information provided by Class Members, the Claims Administrator shall determine the compensation point allotment for each Class Member pursuant to the formulas detailed below. In the Claims Administrator’s discretion, fractions of points may be awarded pursuant to the formulas detailed below, so long as the Claims Administrator’s application of fractions is consistent among similar cases.

The fund for compensating Class Members is allocated as follows: $3,500,000 for payment of Back Pay/Front Pay, as guided by each Class Member’s qualifications for the Immigration Judge positions (“BPQ” pool); $3,500,000 for payment of Compensatory Damages; and $533,334 for payment from the Contribution fund.

A. Back Pay / Front Pay.

A Class Member must provide sufficient information for the Claims Administrator to determine the amount of earned income (including earned overtime) received by the Class Member for the period January 1, 1995 to December 31, 2003. A Class Member must provide information establishing that during the period January 1, 1995 to December 31, 2003 (or particular periods thereof), he was ready, willing, and able to work in the position of Immigration Judge. A Class Member will satisfy these requirements by providing a sworn statement, as provided in the attached Claim Form and Release. Copies of tax or earnings documents for the identified time period may be required at the discretion of the Claims Administrator. If a Class Member fails to provide sufficient information regarding earned income for the period January 1, 1995 to December 31, 2003 (or particular periods thereof), the Claims Administrator shall find that the Class Member has not satisfied his claim for compensation for Back Pay for that period, and the Claims Administrator shall award no Back Pay/Front Pay points for that period.

The Claims Administrator shall compare the annual earnings for the period January 1, 1995 to December 31, 2003 for each Class Member with the average amount of compensation earned by Immigration Judges who took office on January 1, 1995. The Claims Administrator shall assign 1 Back Pay/Front Pay point for every $1,000 of compensation of a Class Member that falls below the earnings of an Immigration Judge during a calendar year during the period January 1, 1995 to December 31, 2003. In other words, the Claims Administrator shall assign 1 Back Pay/Front Pay point for every $1,000 in Back Pay that would be owed to the Class Member for each year. The Claims Administrator shall award no Back Pay/Front Pay points if a Class Member’s actual earnings in a particular year exceed what the Class Member would have earned had he been selected for an Immigration Judge position. The Claims Administrator shall not deduct Back Pay/Front Pay points from a Class Member whose actual earnings in a particular calendar year exceed what the Class Member would have earned had he been selected for an Immigration Judge position for that year – the Claims Administrator shall assign zero Back Pay/Front Pay points to a Class Member for any such year.

EXAMPLE: Class Member A establishes that he earned $73,911 in 1996, including his overtime pay for 1996. The Claims Administrator determines that an Immigration Judge who took office on January 1, 1995 earned $83,911 in 1996. Class Member A’s Back Pay for 1996 is $10,000 ($83,911 in Immigration Judge compensation minus $73,911 in actual earnings). The Claims Administrator will assign 10 Back Pay/Front Pay points for 1996 (one Back Pay/Front Pay point for every $1,000 in Back Pay).

EXAMPLE: Class Member B establishes that he earned $100,000 in 1996, including his overtime pay for 1996. The Claims Administrator determines that an Immigration Judge who took office on January 1, 1995 earned $83,911 in 1996. The Claims Administrator will award zero Back Pay/Front Pay points to Class Member B for 1996, because Class Member B’s actual compensation exceeds the amount he would have earned if he had been selected as an Immigration Judge. The Claims Administrator will not reduce Class Member B’s Back Pay/Front Pay point total by any amount based on his 1996 compensation.

B. Qualifications for Immigration Judge position.

In addition to the minimum qualifications discussed above, the U.S. Department of Justice identified additional desired applicant qualifications in Immigration Judge vacancy announcements. Pursuant to the formula provided below, and based on information provided by each Class Member, the Claims Administrator shall assign Qualification points related to desired qualifications for Immigration Judge applicants. Class Members must provide sufficient information for the Claims Administrator to make determinations on each of the desired qualification categories outlined below. If a Class Member fails to provide sufficient information to the Claims Administrator related to one or more of the categories discussed below, the Claims Administrator shall find that the Class Member has not satisfied his claim for compensation on each such category, and the Claims Administrator shall award no Qualification points for each such category.

1. Immigration law experience.

Each Class Member must provide information regarding his professional background. This information must provide a sufficient basis for the Claims Administrator to determine each Class Member’s level of experience in practicing immigration law for the period prior to December 31, 1995. Each Class Member must provide sufficient information to the Claims Administrator regarding his immigration law experience, including the number of years practicing immigration law, and a reasonable estimation of the percentage of his legal practice devoted to immigration law matters. If a Class Member fails to provide sufficient information to the Claims Administrator related to his immigration law experience for any time period, the Claims Administrator shall find that the Class Member has not satisfied the claim regarding the category of immigration law experience for any such period. The percentage of legal practice devoted to immigration law matters may or may not be connected with the percentage of legal practice devoted to litigation discussed below (i.e., a Class Member may establish that he devoted 100% of his legal practice to immigration law during a time period, and 100% of his practice to litigation during the same period, if he devoted all of his legal practice during that period to litigation of immigration law matters).

Based on the information provided by each Class Member, the Claims Administrator shall determine the number of years prior to December 31, 1995 that each Class Member worked on immigration law issues. For each year, the Claims Administrator shall base calculations of immigration law experience on the percentage of each Class Member’s legal practice devoted to work on immigration law issues. Thus, a Class Member shall receive credit only for the portion or percentage of each year which was devoted to work on immigration law matters.

The Claims Administrator shall assign a maximum of 2 Qualification points for each full year of immigration law experience to each Class Member. The maximum number of Qualification points for a full year will be reduced by any percentage of the year spent not working as an attorney and further reduced by any percentage or portion not devoted to immigration law.

EXAMPLE: Class Member A submits sufficient information to establish that he devoted 50% of his law practice in 1993 to immigration law matters. For the year 1993, the Claims Administrator will assign 1 Qualification points for immigration law experience to Class Member A (2 points times 50%).

2. Litigation experience.

Each Class Member must provide information regarding his professional background. This information must provide a sufficient basis for the Claims Administrator to determine each Class Member’s level of experience in litigation for the period prior to December 31, 1995. Each Class Member must provide sufficient information to the Claims Administrator regarding his litigation experience, including the number of years practicing in litigation, and a reasonable estimation of the percentage of his legal practice devoted to litigation. If a Class Member fails to provide sufficient information to the Claims Administrator related to his litigation experience for any time period, the Claims Administrator shall find that the Class Member has not satisfied the claim regarding the category of litigation experience for any such period. The percentage of legal practice devoted to litigation may or may not be connected with the percentage of legal practice devoted to immigration law matters discussed above (i.e., a Class Member may establish that he devoted 100% of his legal practice to immigration law during a time period, and 100% of his practice to litigation during the same period, if he devoted all of his legal practice during that period to litigation of immigration law matters).

Based on the information provided by each Class Member, the Claims Administrator shall determine the number of years prior to December 31, 1995 that each Class Member worked in litigation. The Claims Administrator shall base calculations of litigation experience on the percentage of each Class Member’s legal practice devoted to litigation. Thus, a Class Member shall receive credit only for the portion or percentage of each year which was devoted to work in litigation.

The Claims Administrator shall assign a maximum of 2 Qualification points for each full year of litigation experience for each Class Member. The maximum number of Qualification points for a full year will be reduced by any percentage of the year spent not working as an attorney and further reduced by any percentage or portion not devoted to litigation.

EXAMPLE: Class Member A submits sufficient information to establish that he devoted 75% of his law practice in 1993 to litigation. For the year 1993, the Claims Administrator will assign 1.5 Qualification points for litigation experience to Class Member A (2 points times 75%).

3. Judicial experience.

Based on the information provided by each Class Member, the Claims Administrator shall determine the number of years prior to December 31, 1995 that each Class Member worked as a judge. The Claims Administrator shall base calculations of judicial experience on the percentage of each Class Member’s legal practice devoted to working as a judge. Thus, a Class Member shall receive credit only for the portion or percentage of each year which was devoted to judicial work.

The Claims Administrator shall assign a maximum of 5 Qualification points for each full year of judicial experience for each Class Member. The maximum number of Qualification points for a full year will be reduced by any percentage of the year spent not working as an attorney and further reduced by any percentage or portion not devoted to judicial work.

EXAMPLE: Class Member A submits sufficient information to establish that he devoted 20% of his law practice in 1993 to serving as a municipal judge. For the year 1993, the Claims Administrator will assign 1 Qualification point for judicial experience to Class Member A (5 points times 20%).

4. Locations of Immigration Judge applications.

For the Immigration Judge vacancies available during the time period from January 1, 1994 to October 30, 1995, applicants were invited to apply for vacancies in various locations. Each Class Member must provide sufficient information to establish which locations he applied for. The Claims Administrator shall determine for each Class Member the total number of locations to which the Class Member applied for. If a Class Member fails to submit sufficient information to the Claims Administrator regarding the locations of Immigration Judge positions he applied for, the Claims Administrator shall determine that the Class Member applied for a total of one position. If a Class Member fails to submit sufficient information to the Claims Administrator regarding the locations of Immigration Judge positions for which he applied for vacancies available during either 1994 or 1995 (though submits sufficient information regarding vacancies available in the other year), the Claims Administrator shall determine that the Class Member did not apply for any Immigration Judge positions during the year for which the Class Member failed to provide sufficient information. The Claims Administrator shall not provide any credit or points with respect to applications after October 30, 1995.

For Class Members who applied for 1-5 locations, the Claims Administrator shall assign 2 Qualification points. For Class Members who applied for 6-19 locations, the Claims Administrator shall assign 4 Qualification points. For Class Members who applied for 20 or more locations, the Claims Administrator shall assign 6 Qualification points.

EXAMPLE: Class Member A submits sufficient information to establish that he applied for vacancies in New York City and Los Angeles available in 1994, and for vacancies in New York City, Los Angeles, San Francisco, and San Diego available from January 1 to October 30, 1995. The Claims Administrator will find that Class Member A applied for a total of six positions during the 1994-1995 period. The Claims Administrator will assign 4 Qualification points to Class Member A.

EXAMPLE: Class Member B submits sufficient information to establish that he applied for vacancies in New York City and Los Angeles available in 1994, but does not provide sufficient information regarding applications for vacancies available from January 1 to October 30, 1995. The Claims Administrator will find that Class Member B applied for a total of two positions during the 1994-1995 period (two in 1994, zero in 1995). The Claims Administrator will assign 2 Qualification points to Class Member B.

EXAMPLE: Class Member C fails to submit sufficient information to establish for which locations he applied for. The Claims Administrator will find that Class Member C applied for a total of one position during the 1994-1995 period. The Claims Administrator will assign 2 Qualification points to Class Member C.

C. Compensatory Damages.

The Class claim in this matter included a claim for compensatory damages for emotional distress, pain and suffering, mental anguish, loss of professional reputation, embarrassment, inconvenience, loss of enjoyment of life, and all other pecuniary and non-pecuniary losses resulting from the non-selections for Immigration Judge positions. A total of $3,500,000 of the fund for compensating Class Members has been allocated to pay compensatory damages. The settlement agreement enables every Class Member an opportunity to recover compensatory damages.

Calculation of damages relating to non-selection is inherently complex and imprecise. Rather than require each Class Member to attempt to reconstruct evidence of damages for the last decade, each Class Member will be assigned a portion of compensatory damages, with greater compensatory damage awards to those Class Members who were actually interviewed for Immigration Judge positions, and therefore, as a general matter, had a greater than average emotional and professional investment in the selection process.

Similarly, those Class Members who contacted an EEO counselor for the purpose of initiating a discrimination complaint regarding Immigration Judge selection decisions, as a general matter, are likely to have experienced greater than average emotional distress and other non-pecuniary losses.

Each Class Member must provide sufficient information to the Claims Administrator to determine whether he was interviewed for an Immigration Judge vacancy available in 1994 and/or from January 1 to October 30, 1995. The U.S. Department of Justice lists discussed above purport to report which applicants were interviewed for positions and the rankings assigned to applicants. The Claims Administrator may use the U.S. Department of Justice lists in making determinations regarding the interview status and the candidate ranking of Class Members.

If a Class Member fails to provide sufficient information to the Claims Administrator to determine if the Class Member was interviewed for an Immigration Judge position available in 1994 or 1995, the Claims Administrator shall determine that the Class Member was not interviewed for vacancies available during 1994 or January 1 to October 30, 1995.

Each Class Member must provide sufficient information to the Claims Administrator to determine if he was ever formally selected for an Immigration Judge position after December 31, 1995. Each Class Member who was formally selected for an Immigration Judge position after December 31, 1995 must provide the date of his selection, the location of the Immigration Court for which he was selected, and the dates of his tenure as an Immigration Judge. If a Class Member fails to provide sufficient information to the Claims Administrator to determine if the Class Member was selected for an Immigration Judge position after December 31, 1995, the Claims Administrator shall determine that the Class Member was not selected for an Immigration Judge position.

The Claims Administrator shall award Compensatory Damages points to Class Members who provide sufficient information pursuant to the following formula:

• Class Members who were not interviewed for Immigration Judge positions prior to October 30, 1995 shall receive 1 Compensatory Damages point.

• Class Members who were interviewed for Immigration Judge positions prior to October 30, 1995 shall receive 3 Compensatory Damages points.

• Class Members who: applied without geographic restriction, were interviewed for an Immigration Judge position, were rated as “Recommended” for an Immigration Judge position, and did not serve at any time as an Immigration Judge shall receive 4 Compensatory Damages points in addition to the applicable Compensatory Damages points designated above.

• Class Members who were formally selected for an Immigration Judge position during the time period January 1, 1996 to December 31, 1996 and served as an Immigration Judge shall receive 1 Compensatory Damages point in addition to the applicable Compensatory Damages points designated above.

• Class Members who were formally selected for an Immigration Judge position after December 31, 1996 and served as an Immigration Judge shall receive 4 Compensatory Damages points in addition to the applicable Compensatory Damages points designated above.

• Class Members who contacted an EEO counselor during 1994-1995 for the purpose of initiating a discrimination complaint regarding Immigration Judge selection decisions shall receive 7 Compensatory Damages points in addition to the applicable Compensatory Damages points designated above.

EXAMPLE: Class Member A provides sufficient information to establish that he was interviewed for an Immigration Judge position available in 1994. The Claims Administrator will award 3 Compensatory Damages points to Class Member A.

EXAMPLE: Class Member B fails to provide sufficient information to establish that he was interviewed for an Immigration Judge position available in 1994 or 1995, but provides sufficient information to establish that he was selected for an Immigration Judge position in 1997, and served as an Immigration Judge during 1997-2000. The Claims Administrator will award 5 Compensatory Damages points (1 Compensatory Damages point for non-interviewed Class Members plus 4 Compensatory Damages points for Class Members who were selected for an Immigration Judge position after December 31, 1996 and served as an Immigration Judge).

E. Contribution to Litigation.

The settlement agreement provides for compensation to Class Members who contributed to Class Counsel’s litigation of this matter. The assistance, guidance, and time provided by contributing Class Members strengthened the legal position of the Class as a whole, and supported Class Counsel’s work toward successfully resolving this matter. A total of $533,334 of the fund for compensating Class Members has been allocated to the Contribution pool. Class Counsel will submit information to the Claims Administrator regarding contributions by individual Class Members. A Class Member who submits a claim for Contribution points thereby authorizes Class Counsel to communicate information about that Class Member’s contribution to the Claims Administrator, and thereby waives any claim that Class Counsel should not have provided the information in question to the Claims Administrator.

Each Class Member must submit sufficient information to the Claims Administrator to determine the level and extent of contribution to the litigation of this matter. This information must include any of the following that apply: the monetary amount of any financial contributions made by the Class Member to Class Counsel toward the litigation of this matter, the events related to this matter attended by the Class Member, and a description of any documents provided by the Class Member to Class Counsel. Supporting documentation is required in order for the Claims Administrator to have sufficient information to assign Contribution points. If a Class Member fails to submit sufficient information and/or documentation regarding contribution to the litigation of this matter, the Claims Administrator shall determine that the Class Member shall receive zero Contribution points.

The Claims Administrator shall award Contribution points to Class Members who provide sufficient information and documentation pursuant to the following formula:

• Class Members who made a financial contribution totaling more than $25 prior to January 16, 2004 to Class Counsel toward the litigation of this matter shall receive 1 Contribution point for every $100 contributed. Class Members who contributed more than $25, but less than $100, shall receive 1 Contribution point. No Contribution points shall be awarded for expenses incurred by Class Members related to this litigation other than financial contributions to Class Counsel.

• Class Members who provided Immigration Judge application documents prior to January 16, 2004 to Class Counsel in this matter, such as application forms, application documents, letters related to applications, and/or resumes, shall receive 5 Contribution points.

• Class Members who provided financial documents prior to January 16, 2004 to Class Counsel in this matter, such as income tax documents and/or earned income statements, shall receive 5 Contribution points.

• Class Members who were deposed in this matter shall receive 20 Contribution points.

• Class Members who serve as approved Class Agents in this matter at the time of final approval of the Settlement Agreement shall receive 60 Contribution points.

• Class Members who attended the mediation sessions in this matter shall receive 40 Contribution points for each day of mediation attended.

EXAMPLE: Class Member A provides sufficient information to establish that he timely contributed $300 to Class Counsel for the litigation of this matter, and he timely provided application documents to Class Counsel. The Claims Administrator will award a total of 8 Contribution points to Class Member A (3 points for monetary contribution plus 5 points for application documents).

III. NOTIFICATION OF POINT ALLOCATIONS.

Based on the formulas for assigning Back Pay/Front Pay points, Qualification points, Compensatory Damages points, and Contribution points pursuant to the formulas presented above, the Claims Administrator shall notify every Class Member of his point allocations. Each Class Member’s point allocation notice shall include his total number of Back Pay/Front Pay points, Qualification points, Compensatory Damages points, and Contribution points, the date on which the notice is issued, and a description of the process available for seeking correction of the point allocation

If a Class Member believes that the point allocation set forth in his point allocation notice is correct, then no further action is required by the Class Member – the Claims Administrator shall base the Class Member’s monetary award on the point allocations contained in the notice.

IV. CORRECTION PROCESS

If a Class Member believes that a determination made by the Claims Administrator requires correction, the Class Member may seek correction pursuant to the following process:

The Class Member must submit his request for correction by U.S. mail within 45 calendar days of the issuance of the Claims Administrator’s notice of the relevant determination. Timeliness of the Class Member’s submission will be based on the date of the postmark. The Class Member must include: (1) a copy of the Claims Administrator’s notice regarding the relevant determination, (2) a copy of all information and documentation submitted by the Class Member to the Claims Administrator relating to the relevant determination, and (3) written explanation of the correction sought by the Class Member. The request for correction must be directed to the Claims Administrator at the following address:

Durnford Claims Administrator
Post Office Box 1507
Tallahassee, FL 32302-1507

It is the responsibility of the Claims Administrator to consider and determine Class Member requests for correction, provided that such requests meet all of the procedural requirements identified above. The Claims Administrator’s consideration and determination will be based on a substantial evidence standard of review; that is, the initial determination will be affirmed if the determination is supported by substantial evidence. The decision of the Claims Administrator regarding a Class Member’s request for correction shall be final. A copy of the decision of the Claims Administrator regarding a Class Member’s request for correction shall be delivered to the Class Member seeking correction.

V. COMPENSATION BASED ON POINT ALLOCATIONS.

Once the Claims Administrator has assigned all Back Pay/Front Pay points, Qualification points, Compensatory Damages points, and Contribution points pursuant to the formulas presented above, and after all timely requests for corrections have been determined by the Claims Administrator pursuant to the process identified above, the Claims Administrator shall determine the monetary award for each Class Member based on the number of points held by the Class Member.

A. Initial Monetary Payment Determination.

Prior to application of the award determination formulas identified below, the Claims Administrator shall determine certain monetary payments to be assigned. The Trustees of the Fund may set aside reserves prior to the determination of monetary awards, as set out in Part II.C.2 of Administrative Order No. 1. In addition, the Claims Administrator shall be bound by the provisions of the Settlement Agreement and Administrative Order No. 1.

1. Claims Administrator Fee.

The Claims Administrator shall be paid for all services and expenses out of the fund for compensating Class Members. The Claims Administrator shall submit a verified administration fee statement to Class Counsel and/or the Trustees of the fund. Class Counsel and/or the Trustees of the Fund shall review the verified administration fee statement. If approved by Class Counsel and/or the Trustees of the Fund, the administration fee shall be deducted from the interest earned by the fund for compensating Class Members. Any approved administration fee left outstanding after the interest earned by the fund is exhausted shall be paid by deducting such amount from the pools of monetary relief as follows: 50% from the BPQ pool, 50% from the Compensatory Damages pool.

2. Class Member Expenses.

The Claims Administrator shall assign monetary payments to each Class Member who provides sufficient information and documentation to establish that he made a financial contribution to the litigation of this matter or otherwise incurred expenses related to the litigation of this matter (such as travel expenses, postage expenses, copy costs, milage using personal vehicle reimbursed at $0.37 per mile, etc.). The value of the time expended by a Class Member shall not be reimbursed. The Claims Administrator shall assign a monetary award to each Class Member in an amount equal to the amount incurred by the Class Member. Payments of these monetary awards shall be deducted from the Contribution pool.

B. Back Pay/Front Pay and Qualification Award Determination.

The Claims Administrator shall multiply the number of Back Pay/Front Pay points assigned to each Class Member by the number of Qualification points assigned to the Class Member. This calculation yields the number of Back Pay Qualification (“BPQ”) points held by each Class Member.

EXAMPLE: Class Member A has been assigned 10 Back Pay/Front Pay points and a total of 20 Qualification points. The Claims Administrator will find that Class Member A holds a total of 200 BPQ points (10 Back Pay/Front Pay points multiplied by 20 Qualification points).

The Claims Administrator shall assign a monetary value to each BPQ point based on the total monetary amount available for the BPQ pool ($3,500,000 plus interest, minus the deductions referenced above) divided by the total number of BPQ points awarded to all Class Members pursuant to the settlement agreement. The Claims Administrator shall then assign a total BPQ recovery for each Class Member, based on the monetary value of one BPQ point times the number of BPQ points assigned to the Class Member. Based on calculations performed by the Class Expert in this matter, it has been determined that interest on Back Pay is on average equal to 12.4% of the Back Pay/Front Pay award for the period January 1, 1995 to December 31, 2003. Therefore, the Claims Administrator shall designate that 12.4% of each Class Member’s monetary award (except for any portion related to contribution to the litigation) represents interest.

C. Compensatory Damage Award Determination.

The Claims Administrator shall assign a monetary value to each Compensatory Damages point based on the total monetary amount available for Compensatory Damages ($3,500,000 plus interest, minus the deductions referenced above) divided by the total number of Compensatory Damages points awarded to all Class Members pursuant to the settlement agreement. The Claims Administrator shall assign a total Compensatory Damages recovery for each Class Member, based on the monetary value of one Compensatory Damages point times the number of Compensatory Damages points assigned to the Class Member. Based on calculations performed by the Class Expert in this matter, it has been determined that interest on compensatory damages is on average equal to 12.4% of the compensatory damages award for the period January 1, 1995 to December 31, 2003. Therefore, the Claims Administrator shall designate that 12.4% of each Class Member’s monetary award (except for any portion related to contribution to the litigation) represents interest.

D. Contribution Award Determination.

The Claims Administrator shall assign a monetary value to each Contribution point based on the total monetary amount available for Contribution ($533,334 plus interest, minus the deductions referenced above) divided by the total number of Contribution points awarded to all Class Members pursuant to the settlement agreement. The Claims Administrator shall assign a total Contribution recovery for each Class Member, based on the monetary value of one Contribution point times the number of Contribution points assigned to the Class Member.

E. Exclusion from Monetary Relief.

Only Class Members who timely submit a fully executed Claim Form and Release, a copy of which is attached hereto, are eligible to receive any monetary relief under the settlement agreement. Class Members who do not follow these procedures will not be eligible for any monetary relief under the settlement agreement in this matter.

F. Payment of Awards.

In accordance with the process above and pursuant to the provisions of the Settlement Agreement and Administrative Order No. 1, the Claims Administrator shall distribute all of the $7,533,334 for compensation to Class Members, so that no portion of this sum shall remain unpaid. The Claims Administrator shall distribute awards by mailing to each eligible Class Member claimant his check(s) in the amount determined by the Claims Administrator subject to all applicable tax deductions and withholdings. The Claims Administrator shall withhold appropriate tax amounts (including income taxes and the employee and employer’s share of FICA and Medicaid taxes) and forward withholdings to the appropriate governmental entity.

VI. UNEXPENDED MONEY.

If any unexpended balance exists in the Fund after all payments to eligible Class Members, the Claims Administrator, and Class Counsel, and of all tax and other obligations under the Settlement and Administrative Order No. 1, then such balance shall be distributed to Class Member claimants pro-rata if feasible. If pro-rata distribution to Class Member claimants is not feasible, then any unexpended balance may be used to offset expenses and fees of Class Counsel incurred subsequent to the signing of the Settlement Agreement, or may be contributed to the U.S. Treasury as unclaimed property.

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