IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION SETTLEMENT AGREEMENT

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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff, Case No. 02 C 6305 v. Judge St. Eve UNITED PARCEL SERVICE, INC., Defendant. DOClliliD SEP 03 2003 0 W =:J "'""" l.l. M = "" c:> CN <.!l :::> <C ;--. L: (' - L I!!.! 0 ~:.-,.~.... ~ " ~,..., SETTLEMENT AGREEMENT The United States Equal Employment Opportunity Commission ("EEOC" and United Parcel Service, Inc. (which, together with and on behalf of all its current affiliates, related entities, parent corporations, subsidiaries, representatives, successors, assigns, employees, agents, officers, directors, and attorneys, shall hereinafter all be collectively referred to as "UPS" hereby agree as follows: Statement of Facts I. Chuck Thomas ('Thomas" was employed by UPS as a feeder driver; 2. Since at least August 1998 Thomas has been insulin dependent diabetic and, pursuant to Department of Transportation regulations, no longer qualified to perform his feeder driver position; 3. Accommodating Thomas would have imposed an undue hardship on UPS and, thus, there was no work available for Thomas at UPS; 4. UPS terminated Thomas' employment on July 18, 2003 because it could not accommodate Thomas and there was no work available for him;

5. On October 19,1999, Thomas filed EEOC Charge No. 210A00227, which alleged disability discrimination in violation of the Americans with Disabilities Act, 42 U.S.Co 12101 et ~ ("ADA"; 6. On September 5, 2002 the EEOC filed EEOC v. UPS, Case Number 02 C 6305, on behalf of Thomas in the United States District Court for the Northern District of Illinois ("lawsuit''; 7. UPS has denied any liability to Thomas or the EEOC and EEOC has denied the validity of UPS's defenses to the lawsuit; and 8. EEOC, UPS and Thomas have engaged in comprehensive settlement negotiations, and as a result of having engaged in these negotiations, the parties have agreed that this action should be finally resolved by entry ofthis Settlement Agreement (hereafter "Settlement". This Settlement fully and finally resolves any and all issues and claims arising out of the Complaint filed by the EEOC in this action. Agreements of the Parties 9. Non-admission Nothing contained in this Settlement shall be construed as an admission with respect to any of the claims or defenses of the suit. 10. Monetary Relief for Charging Party UPS will pay Thomas the total sum of one hundred forty-nine thousand nine hundred ninety-nine dollars ($149,999.00, in the following manner: (i UPS will issue one check payable to Thomas in the gross amount of seventy-four thousand nine hundred ninety-nine dollars and fifty cents ($74,999.50, minus all applicable federal, state and local withholdings for which UPS employees are typically liable; and (ii UPS will issue a second check payable to 2

Thomas in the amount of seventy-four thousand nine hundred ninety-nine dollars and fifty cents ($74,999.50. The EEOC agrees that this latter amount covers non-wage compensation. UPS wiii issue to Thomas a Fonn W-2 for the gross amount of seventy-four thousand nine hundred ninety-nine dollars and fifty cents ($74,999.50 and a Fonn 1099 for the gross amount of seventy-four thousand nine hundred ninety-nine dollars and fifty cents ($74,999.50. The total settlement includes all attorneys fees and costs incurred and EEOC waives any claim for attorneys fees. These checks shall be made available to Thomas at the offices of UPS's counsel, John Klages within 15 days of receipt by Mr. Klages of a signed original of both this Settlement and the Release Agreement attached as Exhibit A. UPS may obtain written continnation of receipt of the checks from Thomas. 11. Dismissal of Lawsuit EEOC agrees that the lawsuit it filed on behalf of Thomas will be dismissed with prejudice and without costs or attorneys' fees to either party. The parties agree that signed copies of the Stipulation to Voluntary Dismissal by Plaintiff attached as Exhibit B, the proposed dismissal Order (Exhibit C and this Settlement shall all be filed at one time with the Court. 12. UnemploYment Benefits UPS agrees that it will not contest any application by Thomas for unemployment benefits from the State of Illinois. 13. Reference UPS agrees to have the reference letter attached as Exhibit D signed by a Human Resources Manager from its Metro Chicago District and to provide the letter to Thomas. 14. Governing Law To the extent that state laws are applicable in construing and enforcing this Settlement 3

Agreement, it shall be construed and enforced pursuant to the laws of the State of Illinois as to substance and procedure, including all questions of conflicts of laws. 15. Countemarts This Settlement Agreement may be signed in single or separate counterparts, each of which shall constitute an original. 4

For the EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1801 L Street, N.W. Washington, D.C. 20507 James Lee Deputy General Counsel Gwendolyn Young Reams Associate General Counsel EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 500 We~~s~t ~~~S~jtreet For United Parcel Service: John Quar s & Brady LLC 500 W. Madison, #3700 Chicago, IL 60661 1J!~~~ Martha I. C. Escandon District Human Resourses Manager UPS 1400 S. Jefferson St. ]~AA Bill Stovall, Esq. ~ "-- UPS 55 Glenlake Parkway, N.E. Atlanta, GA 30328 DATE: --"f~.l--",~~7.l.a.=-o=3 Ethan M. M. Cohen Trial Attorney DATE: <t/2.( /63 I 5

EXHIBIT A

ic44 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, v. Plaintiff, UNITED PARCEL SERVICE, INC., Defendant. Case No. 02 C 6305 Judge St. Eve RELEASE AGREEMENT I, Chuck Thomas, for and in consideration of the gross sum of one hundred forty-nine thousand nine hundred ninety-nine dollars ($149,999.00, payable to me pursuant to the terms of the Settlement Agreement between United Parcel Service ("UPS" and the United States Equal Employment Opportunity Commission ("EEOC'' in the above captioned case, on behalf of myself, my heirs, assigns, executors, and agents, do hereby forever release, waive, remise, acquit, and discharge UPS, and all past and present shareholders, officers, agents, employees, and representatives of UPS, as well as all successors and assignees of UPS, from any and all claims and causes of action of any kind which I now have or ever have had under Title I of the Americans with Disabilities Act, 42 U.S.C. 12101 et. seq., including all claims which were or which could have been asserted in EEOC v. United Parcel Service, 02 C 6305 (N.D. Ill., and any and all claims for retaliation, termination and denial of accommodation based on any event prior to and including the date of this release. I understand that the total settlement amount includes all attorneys fees and costs I may have incurred. Page I of 2

I further state that I have read and understand the Settlement Agreement between the EEOC and UPS and agree that the facts recited therein are true and accurate. I further represent and agree that I have carefully read and fully understand all the provisions of this Release and am voluntarily and knowingly entering into the same. Date Chuck Thomas Page 2 of 2

EXHIBITB

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, v. Plaintiff, UNITED PARCEL SERVICE, INC., Defendant. Case No. 02 C 6305 Judge St. Eve STIPULATION AND VOLUNTARY DISMISSAL BY PLAINTIFF Pursuant to Rule 41(a of the Federal Rules of Civil Procedure, the parties hereby stipulate to the entry ofthe attached "Order of Dismissal" granting Plaintiff Equal Employment Opportunity Commission a voluntary dismissal of its Complaint with prejudice and without the assessment of costs or attorneys' fees against either party. Dated: 6' (0/'-... ~ f ~Ethan M. M. Cohen Equal Employment Opportunity Commission 500 West Madison Street, Suite 2800 Chicago, Illinois 60661 (3 2 353-7568 Dated: ~'Zt- 03 Klages Q les & Brady LLC 500 W. Madison Street, Suite 3700 Chicago, IL 60661 (312 715-5000

EXHIBITC

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, v. Plaintiff, UNITED PARCEL SERVICE, INC., Defendant. Case No. 02 C 6305 Judge St. Eve ORDER OF DISMISSAL In accordance with the Settlement Agreement attached hereto and incorporated herein by reference, it is hereby ordered that this cause and the same is hereby dismissed with prejudice and without the assessment of costs or attorneys' fees against any party. All further dates are stricken. Date:, ENTER: Honorable Amy J. St. Eve

, EXHIBITD

, United Parcel Service 1400 South Jefferson Street, Chicago, IL 60607 (800 742-5877 August 1, 2003 To Whom It May Concern: Chuck R. Thomas was employed by United Parcel Service, Inc_ from February 1, 1982 to July 18, 2003, Mr_ Thomas performed his duties in a satisfactory manner for UPS and his employment ended on July 18, 2003 due to a lack of available work for him, At the time of his termination, Mr, Thomas held the position offeeder driver (Tractor-trailer unit, If necessary. the date ofmr, Thomas' employment may be verified by calling United Parcel Service's Reference Service at (770 419-4184_ Sincerely, 1/IPt~ /i~ Martha I. C. Escand6n District Human Resources Manager Metro Chicago District WortdW," OlymPio P... 36 USC 380