SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON RECITALS

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1 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON RECITALS A. Mark Long (hereinafter Plaintiff ) is an employee with the Oregon Department of Consumer and Business Services. The parties to this Agreement are Plaintiff and the State of Oregon, including all State of Oregon offices, divisions, departments, agencies, institutions, officers, employees, former employees and agents (hereafter State of Oregon ). B. On November 29, 2010, Plaintiff s attorneys, William F. Gary, Dave Frohnmayer and Harrang Long Gary Rudnick P.C. served a notice on the Oregon Department of Administrative Services, and other state officials, attached as Exhibit 1 herein. The notice alleged that the State of Oregon and its officials had taken improper, illegal, and tortious actions in violation of Plaintiff s constitutional rights. The State of Oregon denies the allegations. C. On December 29, 2010, Plaintiff s attorneys, William F. Gary, Dave Frohnmayer and Harrang Long Gary Rudnick P.C. sent a letter to Governor Kulongoski and other state officials, attached as Exhibit 2 herein. The letter alleged that the State and its officials had taken improper, illegal, and tortious actions in violation of Plaintiff s constitutional rights. The State of Oregon denies the allegations. D. On June 24, 2011, Plaintiff s attorneys, Sharon Rudnick and Harrang Long Gary Rudnick P.C., served a tort claims notice on the Oregon Department of Administrative Services, attached as Exhibit 3 herein. The notice alleged that the State of Oregon and its officials had taken improper, illegal, tortious and retaliatory actions in violation of Plaintiff s PAGE 1 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

2 constitutional rights. The State of Oregon denies the allegations. E. On April 8, 2011, Mark Long filed a public records lawsuit in Marion County Circuit Court entitled Mark Long v. John Kroger, in his official capacity as Attorney General for the State of Oregon, Case No. 11C14422 for declaratory and injunctive relief. That case went to trial in 2012 and a general judgment in favor of Plaintiff entered on June 18, A supplemental judgment awarding Plaintiff $562, in attorney fees and costs was entered on October 30, The State filed a timely appeal of both the judgment and supplemental judgment, which is currently pending before the Oregon Court of Appeals, Case No. A F. On June 21, 2012, Plaintiff filed suit in Marion County Circuit Court entitled Mark Long v. John Kroger, Sean C. Riddell, and the State of Oregon, by and through the Oregon Department of Justice, Case No. 12C Following its removal to federal court, the State of Oregon and the individual defendants asserted counterclaims against Plaintiff for their attorney fees incurred in connection with the case. The case is currently pending before the United States District Court for the District of Oregon, Case No. 6:12-cv-01383TC ( Federal action ). The State of Oregon and the individual defendants deny the allegations. G. Collectively, Plaintiff s tort claim notices identified in paragraphs B, C and D, and Exhibits 1, 2 and 3 and lawsuits identified in paragraphs E and F herein, and all claims relating to or arising from the events described therein shall be referred to as Plaintiff s Claims. H. The parties wish to resolve all issues between them including those concerning Plaintiff s Claims and the counterclaims asserted in the Federal action. I. If any provision of this Settlement Agreement and Release (hereinafter PAGE 2 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

3 Agreement ) shall ever be declared defective, void or voidable, or otherwise struck down or invalidated, the invalidation shall affect that particular provision only. The remaining provisions shall continue in full force and effect. J. This Agreement does not establish a precedent in the settlement of any current or future grievance, claim of unfair labor practice, or other dispute among the parties, and shall not be admissible as evidence in any future arbitration, administrative or court proceeding except in a proceeding brought to enforce the terms of this Agreement. K. In the event Plaintiff pursues a claim waived or released pursuant to this Agreement, the State of Oregon may plead this Agreement as an absolute defense. This Agreement does not operate to waive any right that may not legally be waived. L. This settlement is meant to resolve all issues with Plaintiff and the State of Oregon, including but not limited to all matters set forth in these recitals. M. This Agreement and all of the terms and provisions hereof, shall be binding upon and shall inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns. AGREEMENT CONSIDERATION FROM THE STATE OF OREGON 1. The State of Oregon agrees to pay Plaintiff, within ten (10) days of the date this Agreement is executed by Plaintiff, the sum of one million dollars ($1,000,000.00) to resolve all matters between Plaintiff and the State of Oregon, including those set forth in the recitals above. The State of Oregon shall complete Internal Revenue Service ( IRS ) form 1099 and/or such other documents as may be required by taxing authorities. 2. The State of Oregon also agrees to reinstate 220 hours of Plaintiff s vacation time. PAGE 3 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

4 3. The State of Oregon and the individual defendants will dismiss their counterclaims in the Federal action with prejudice, each party to bear its own costs. CONSIDERATION FROM PLAINTIFF. 4. Plaintiff, on behalf of himself and his executors, heirs, administrators, successors and assigns, hereby covenants not to sue and fully and forever releases, acquits, and forever discharges the State of Oregon and all of its offices, departments, agencies, divisions, and institutions, including but not limited to Oregon Department of Energy, Oregon Department of Consumer and Business Services, Oregon Department of Justice, the Office of the Secretary of State, the Office of the Governor, Ellen Rosenblum, John Kroger and Sean Riddell, together with all of the State of Oregon s current and former agents, employees, managers, and officials, whether elected or appointed, from any and all claims whatsoever which exist through the date of this Agreement, including but not limited to demands, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys fees, expenses, damages, losses, employee compensation, employee benefits, judgments, orders, liens, and liabilities of any, every and whatever kind or nature, in all forms thereof, whether in law, equity or otherwise, whether based in contract, tort, statute, regulation, tariff, rule, indemnification, contribution, or any other theory of recovery whether known or unknown, whether suspected or unsuspected, and whether or not concealed or hidden, which have existed or may have existed, or which do exist or which hereafter can, shall or may exist, based on any facts, events, or omissions that in any manner or fashion relate to or arise out of Plaintiff s employment with the State of Oregon through the date of this Agreement or Plaintiff s Claims. This includes any and all of Plaintiff s damages, including any damages, injuries and claims which are not anticipated or which may develop in the future that arise out of Plaintiff s employment with the State of Oregon through the date of this Agreement or Plaintiff s Claims, and Plaintiff hereby expressly waives and relinquishes any and all rights under any law or statute to the contrary. This release includes any claim arising from the PAGE 4 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

5 negotiation and execution of this Agreement, including fraud in the inducement. This release does not preclude Plaintiff from bringing a claim for specific performance of this Agreement. 5. Plaintiff agrees to be personally liable for all unsatisfied bills, charges, liens, subrogation rights, and reimbursement rights which are or may be presented or held by other persons or organizations having provided services, insurance benefits, or other value to him or on his behalf as a result of the injuries and damages arising out of the events alleged in the matters described above, and on Plaintiff s Claims, and he agrees to hold harmless from any such claims the parties being released, their agents, representatives, successors and assigns. 6. Plaintiff understands and agrees that this is a compromise settlement, and payment is accepted voluntarily as full and final compromise, satisfaction and settlement of disputed claims and rights. He further understands and agrees that this settlement is not to be considered as an admission of any liability or fault whatsoever, in whole or in part, from any incident in which the parties, their agents, or representatives, are released by this Agreement. He further understands and agrees that the parties who are released by this Agreement expressly deny any liability or fault whatsoever, in whole or in part, for any incidents described and referred to in this Agreement. 7. The parties to this Agreement agree that no party warrants or represents how the United States Internal Revenue Service ( IRS ) or other governmental authority will treat the payment described above for tax purposes, and agree that no further payment of money from the State of Oregon will be due in the event that the payments or the release of the claims embodied in this Agreement or any portion thereof is found by the IRS or other governmental authority to be, or result in, taxable income to any party. The State of Oregon agrees not to initiate any contact with any governmental authority beyond providing an IRS form The State of Oregon reserves the right to respond to inquiries by said authorities and to make any additional disclosures requested by the governmental authority or required by law. Plaintiff agrees to defend, indemnify and hold harmless the PAGE 5 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

6 State of Oregon from any and all manner of liability if any should be imposed on the State of Oregon regarding the payment to Plaintiff under this Agreement specified above. Plaintiff understands that he is solely responsible for the tax consequences of the payments outlined above in paragraph 1. Plaintiff agrees not to hold any other party to this Agreement responsible for taxes due and recognizes that he is solely responsible for any resultant tax payments associated with this release. 8. This release includes, but is not limited to, any claims that Plaintiff may bring under the Age Discrimination in Employment Act of 1967 (29 U.S.C. 621, et seq.) ( ADEA ) or the Older Worker s Protection Act pursuant to the specific conditions set forth below in compliance with the ADEA. a. Plaintiff acknowledges that he has consulted with legal counsel before signing this Agreement. b. By signing this Agreement, Plaintiff acknowledges he waives any and all claims under the ADEA as of the date of signing this Agreement and realizes that neither he, nor anyone on his behalf, can sue the State of Oregon or any of their agencies, employees, or contractors, or insurers and their successors for any claims of discrimination based on age. c. Plaintiff acknowledges that he may, but is not required to, take up to 21 (twenty-one) days to sign this Agreement. d. Plaintiff acknowledges he has seven (7) days following the date he signs this Agreement to revoke his waiver of claims under the ADEA, and this portion of the Agreement will not become effective until the revocation period has expired. For such revocation to be effective, written notice of Plaintiff s intent to revoke must be sent or delivered to the Oregon Department of Justice, Trial Division, Employment Litigation Section, at 1162 Court Street NE, Salem, Oregon 97301, and the written notice must be received at the Department of Justice by midnight on the seventh (7th) calendar day after Plaintiff signs this Agreement. PAGE 6 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

7 MUTUAL PROMISES 9. The parties to this Agreement understand and agree that this settlement is not to be considered as an admission by any party of any liability or fault whatsoever, in whole or in part. They further understand and agree that the parties to this Agreement expressly deny any liability or fault whatsoever, in whole or in part, for any incidents described and referred to in this Agreement. 10. All parties understand and agree that this Agreement states the entire agreement between the parties in settlement of the above-described claims and supersedes all prior or contemporaneous oral or written statements, understandings, representations or promises. The terms of this Agreement are contractual, binding on the parties, and not merely recitals. 11. No party warrants or represents how taxing authorities will treat the payments described above for tax purposes, and agree that no further payment of money to Plaintiff from the State of Oregon will be due in the event that the payment or the release of the claims embodied in this Agreement or any portion thereof is found by a government authority to be, or result in, taxable income to any party. 12. All parties understand that this Agreement represents a full and final compromise, satisfaction and resolution of all of Plaintiff s potential claims, and Plaintiff acknowledges that Plaintiff relinquishes his claims knowingly, voluntarily, and intelligently. The State of Oregon denies any and all allegations of wrongdoing and denies liability for the claims described above. 13. Following the execution of this Agreement, Plaintiff will be entitled to the same ORS investigation, review and decision process as any other current or former State employee or official who affirmatively requests legal representation. 14. The State of Oregon will not rely on the fact that Plaintiff brought Plaintiff s Claims or this Agreement as grounds to terminate Plaintiff s employment with the State. PAGE 7 SETTLEMENT AGREEMENT AND RELEASE BETWEEN MARK LONG AND THE STATE OF OREGON

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19 IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR THE COUNTY OF MARION 6 7 MARK LONG, Plaintiff, No. 11C vs. ELLEN ROSENBLUM, in her official capacity as Attorney General for the State of Oregon and Successor to Kroger, Defendant. FULL SATISFACTION OF JUDGMENT Page Plaintiff, Mark Long, through counsel, hereby acknowledges that defendant has fully satisfied the General Judgment entered on June 18, 2012 and the Supplemental Judgment entered on October 20, 2012, in the above-captioned matter, and plaintiff s counsel hereby instructs the Court Administrator to note said Satisfaction in Full in the register of the Court. DATED this day of August, FULL SATISFACTION OF JUDGMENT HARRANG LONG GARY RUDNICK, PC By: William F. Gary, OSB # Sharon A. Rudnick, OSB # Jeffery J. Matthews, OSB # Of Attorneys for Plaintiff SUBSCRIBED AND SWORN to before me this day of, Notary Public for Oregon My Commission Expires: Exhibit 4 Page 1 of 1

20 William F. Gary, OSB # Sharon A. Rudnick, OSB # Jeffery J. Matthews, OSB # HARRANG LONG GARY RUDNICK, PC 360 East 10th Avenue, Suite 300 Eugene, OR Telephone: (541) Fax: (541) Attorneys for Plaintiff David B. Markowitz, OSB #74204 Lisa A. Kaner, OSB # Michele E. Stone, OSB #05389 Joseph L. Franco. OSB # MARKOWITZ, HERBOLD, GLADE & MEHLHAF, P.C. Suite 3000, Pacwest Center 1211 SW Fifth Avenue Portland, OR Telephone: (503) Fax: (503) Attorneys for Defendants John Kroger and the State of Oregon Keith J. Bauer, OSB # PARKS, BAUER, SIME, WINKLER & FERNETY LLP 570 Liberty Street, SE #200 Salem, OR Attorney for Defendant Sean Riddell IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON EUGENE DIVISION Page 1 - NOTICE OF DISMISSAL WITH PREJUDICE, BASED ON STIPULATION OF THE PARTIES; PROPOSED ORDER Exhibit 5 Page 1 of 3

21 MARK LONG, Case No. 6:12-cv-1383-TC Plaintiff, v. JOHN KROGER, SEAN C. RIDDELL, and the STATE OF OREGON, by and through THE OREGON DEPARTMENT OF JUSTICE, NOTICE OF DISMISSAL WITH PREJUDICE, BASED ON STIPULATION OF THE PARTIES; PROPOSED ORDER Defendants. The parties have settled this matter and, pursuant to Fed R. Civ. P. 41, dismiss this action with prejudice, with the parties bearing their own costs and attorneys fees. IT IS STIPULATED this day of August, HARRANG LONG GARY RUDNICK, PC By: William F. Gary, OSB # Sharon A. Rudnick, OSB # Jeffery J. Matthews, OSB # (541) Of Attorneys for Plaintiff PARKS, BAUER, SIME, WINKLER & FERNETY LLP MARKOWITZ, HERBOLD, GLADE & MEHLHAF, P.C. By: David B. Markowitz, OSB #74204 Lisa A. Kaner, OSB # Michele E. Stone, OSB #05389 Joseph L. Franco. OSB # (503) Attorneys for Defendants John Kroger and the State of Oregon By: Keith J. Bauer, OSB # (503) Attorney for Defendant Sean Riddell Page 2 - NOTICE OF DISMISSAL WITH PREJUDICE, BASED ON STIPULATION OF THE PARTIES; PROPOSED ORDER Exhibit 5 Page 2 of 3

22 ORDER The parties have fully settled the above entitled matter, and the COURT HEREBY ORDERS that all claims and counterclaims are dismissed with prejudice. The parties shall bear their own costs and attorneys fees. DATED: The Honorable Thomas M. Coffin JUDGE, United States District Court for the District of Oregon Page 3 - NOTICE OF DISMISSAL WITH PREJUDICE, BASED ON STIPULATION OF THE PARTIES; PROPOSED ORDER Exhibit 5 Page 3 of 3

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