2. At all times mentioned in this Complaint, defendant, Thomas Zmigrodski, was Vice-

KEEFE BARTELS 170 Monmouth Street Red Bank, New Jersey 07701 (732) 224-9400 (732) 224-9494 (fax) Attorneys for Plaintiff, Kara Sakowski ;j KARA SAKOWSKI, VS. Plaintiff, SUPERIOR COURT OF NEW JERSEY LAW DIVISION: MIDDLESEX COUNTY DOCKET NUMBER:4 /fr.) 9N- // CIVIL ACTION PERTH AMBOY BOARD OF EDUCATION; ROLAND JENKINS; THOMAS ZMIGRODSKI; ERIC COMBS; ABC CORPORATIONS (1-10) and JOHN DOES (1-10), COMPLAINT, JURY DEMAND AND DESIGNATION OF TRIAL COUNSEL Defendants. Plaintiff, Kara Sakowski, by way of Complaint against the above-named defendants, say as follows: COUNT ONE 1. At all times mentioned in this Complaint, defendant, Roland Jenkins, was Principal at the Robert N. Wilientz School, 51 First Street, Perth Amboy, New Jersey and was a member of the upper level management of, as well as an agent and employee of, defendant Perth Amboy Board of Education, and acting within the scope of his authority as such and in the furtherance of the business of his employer. 2. At all times mentioned in this Complaint, defendant, Thomas Zmigrodski, was Vice- Principal at the Robert N. Wilientz School, 51 First Street, Perth Amboy, New Jersey and was a member of the upper level management of, as well as an agent and employee of,

defendant Perth Amboy Board of Education, and acting within the scope of his authority as such and in the furtherance of the business of his employer. 3. At all times mentioned in this Complaint, defendant, Eric Combs, was an agent and employee of, defendant Perth Amboy Board of Education, and acting within the scope of his authority as such and in the furtherance of the business of his employer 4. Plaintiff, Kara Sakowski, is female and a member of a protected class under the Law Against Discrimination, N.J.S.A. 10:5-1, et seq., and, at all times mentioned in this Complaint, was employed at the Robert N. Wilientz School, 51 First Street, Perth Amboy, New Jersey as a teacher by defendant, Perth Amboy Board of Education, and was under the direct supervision and control of defendants, Roland Jenkins and Thomas Zmigrodski. 5. At all times mentioned in this Complaint, defendant, Perth Amboy Board of Education, is an employer under the Law Against Discrimination, N.J.S.A. 10:5-1, et seq. 6. At all times mentioned in this Complaint, defendant, Perth Amboy Board of Education, engaged defendants, Roland Jenkins and Thomas Zmigrodski, as upper level management in general charge of the operation and management of the Robert N. Wilentz School, and as such are employers and/or supervisors under the Law Against Discrimination, N.J. S.A. 10:5-1, et seq. 7. At all times in this Complaint, defendants ABC Corporations (1-10) are yet unidentified entities which may be directly or vicariously liable through the conduct of their employees who may have intentionally and/or negligently allowed and/or condoned any or all of the wrongful acts described to have occurred hereinafter. 2

8. At all time in this Complaint, defendants John Does (1-10) are as yet unidentified individuals who may have intentionally and/or negligently caused, allowed and/or condoned any or all of the wrongful acts described to have occurred hereinafter. 9. On February 22, 2010, plaintiff, Kara Sakowski, was in her classroom when defendant, Eric Combs, a permanent substitute teacher for the Perth Amboy School District, entered Ms. Sakowski's classroom and closed the door, causing it to become locked from the outside. 10. Mr. Combs approached Ms. Sakowski, grabbed her violently, picked her off of the floor and slammed her against a concrete wall. 11. Mr. Combs then committed various unwelcome sexual acts against Ms. Sakowski, including, but not limited to, forcefully kissing her and fondling her breasts, legs and groin area. 12. Mr. Combs relented his sexual assault and battery only when a student of Ms. Sakowski's attempted to enter the classroom. Mr. Combs then left the classroom and went to an unknown location. 13. Following Mr. Combs' sexual assault and battery, Ms. Sakowski contacted the school's office and requested to speak to defendants, Roland Jenkins or Thomas Zmigrodski. At that time, she was advised that they were unavailable. 14. After additional attempts to contact defendants, Jenkins and Zmigrodski, Ms. Sakowski confided in another teacher, Mary Griffin. Ms. Griffin interceded on Ms. Sakowski's behalf and was able to arrange a meeting with defendants, Jenkins and Zmigrodski, but was denied the opportunity to be present at the meeting. 15. During the meeting with defendants, Jenkins and Zmigrodski, Ms. Sakowski advised them of Mr. Combs' sexual assault and battery. 3

16. At that time, and contrary to the district's policies, neither Mr. Jenkins nor Mr. Zmigrodski called the police or superintendent's office or had Mr. Combs removed from school property. 17. Instead, although fully aware of the sexual assault and battery by Mr. Combs and the fact that Ms. Sakowski was in obvious distress, they sent Ms. Sakowski back to her classroom with her students. 18. After returning Ms. Sakowski to her classroom, again contrary to the district's policies, neither Mr. Jenkins nor Mr. Zmigrodski called the police or superintendent's office or had Mr. Combs removed from school property. 19. In fact, at the end of the day, Messrs. Jenkins and Zmigrodski called Ms. Sakowski back to Ms. Jenkins' office. During this meeting, Mr. Combs was present and made to apologize to Ms. Sakowski for his illegal sexual assault and battery of her. 20. At that time, Mr. Jenkins admitted that Mr, Combs' actions were "inappropriate" and indicated to Ms. Sakowski that, if it happened again, he would support her going to the police, but he did not believe it was necessary to contact the police for Mr. Combs' sexual assault and battery. 21. Ms. Sakowski stated that she would not accept Mr. Combs' apology and no longer felt safe at the school. 22. In response, Mr. Zmigrodski stated to Ms. Sakowski that he hoped that they could put the incident behind them and let "by-gones be by-gones." 23. After returning Ms. Sakowski to her classroom, again contrary to the district's policies, neither Mr. Jenkins nor Mr. Zmigrodski called the police or superintendent's office or had Mr. Combs removed from school property. 4

24. The following day, as a result of the assault and battery, as well as Messrs. Jenkins' and Zmigrodski's acts and omissions, Ms. Sakowski called out sick from work. On that date, however, Ms. Zmigrodski called Ms. Sakowski at her home and stated that he did not believe she should go to the police and that Mr. Combs's sexual assault and battery was a one-time event. Amazingly, Ms. Zmigrodski had called Ms. Sakowski's mother on the day of the incident and stated the same to her. 25. Finally, two days after the incident, Ms. Sakowski met with William Stratton, head of the defendant, Perth Amboy Board of Education's,Human Resources Department. After providing the same details of Mr. Combs' sexual assault that she had given to defendants, Jenkins and Zmigrodski, Mr. Stratton admitted to Ms. Sakowski that she had been sexually assaulted and that he needed to contact the police. 20. The actions of defendants, Jenkins, Zmigrodski and/or Combs, were unwelcome, harassing, and sexually discriminatory towards Ms, Sakowski and created a sexually hostile work environment that no reasonable woman in Ms. Sakowski's position would be required to endure. 21. Moreover, defendants, Jenkins and Zmigrodksi, along with other employees of defendant, Perth Amboy Board of Education, either expressly or implicitly acquiesced in, aided and condoned Mr. Combs' sexual assault and battery of Ms. Sakowski. 22. The failure of defendants, Jenkins and Zmigrodski, to take any remedial or disciplinary action against Mr. Combs created and/or perpetuated a sexually intimidating and hostile work environment against Ms. Sakowski. 5

23. The sexually discriminatory and harassing conduct of the defendants was unwelcome, abusive and degrading to Ms. Sakowski and would be unwelcome, abusive and degrading to a reasonable woman in Ms. Sakowski's position. 24. Moreover, the adverse effects of defendants, Jenkin's and Zmigrodski's conduct upon Ms. Sakowski and their condoning of and aiding in the wrongful and illegal behavior of Mr. Combs were heightened in severity by the fact that they stood in a superior position to Ms. Sakowski. 25. As a result of the aforementioned wrongful, harassing and discriminatory acts and omissions of defendants, Jenkins, Zmigrodski and/or Combs, Ms. Sakowski has been unable to return to work. 26. The actions and omissions of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, were in violation of the protections and guaranties of the Law Against Discrimination, N. J. S 10:5-1, et seq. 27. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: 6

A. Compensatory damages; B. Punitive Damages; C. Expenses, costs of suit and attorneys' fees pursuant to the Law Against Discrimination, N.J.S.A. 10:5-1, et seq., and applicable case law; D. Prejudgment and post-judgment interest; and E. Such other relief as the Court may deem just and equitable. COUNT TWO 28. Plaintiff repeats and realleges each and every allegation contained in Count One and make the same a part hereof as if set forth at length herein. 29. Plaintiff's complaints and requests that defendants remedy the previously-described unlawful discrimination and harassment were responded to by the defendants in a retaliatory manner, subjecting plaintiff to further discrimination and unreasonable and unnecessary exposure to a sexually-harassing workplace environment in violation of the Law Against Discrimination, N.J.S.A. 10:5-1, et seq. 30. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: 7

F. Compensatory damages; G. Punitive Damages; H. Expenses, costs of suit and attorneys' fees pursuant to the Law Against Discrimination, N.J.S.A. 10:5-1, et seq., and applicable case law; I. Prejudgment and post-judgment interest; and J. Such other relief as the Court may deem just and equitable. COUNT THREE 31. Plaintiff repeats and realleges each and every allegation contained in the prior Counts and make the same a part hereof as if set forth at length herein. 32. At all times mentioned in this Complaint, the individual defendants named herein and defendant, Perth Amboy Board of Education's, employees, Roland Jenkins, Thomas Zmigrodski, Eric Combs, and/or defendants John Doe (1-10), among others, acted within the scope of their respective employments and for the benefit of business of defendant, Perth Amboy Board of Education. 33. Perth Amboy Board of Education is vicariously liable for the unlawful acts of the individual defendants named herein and defendant's employees under the principles of respondeat superior. Perth Amboy Board of Education is also liable as a matter of direct liability in that defendants, Jenkins and Zmigrodski, and/or defendants John Doe (1-10), as managers and supervisors, acted within the scope of their employments and wrongfully and illegally acted against plaintiff. 34. Defendants, ABC Corporations (1-10), are vicariously liable for the unlawful acts of the individual defendants and/or defendants John Doe (1-10), among others, under the principles 8

of respondeat superior. Defendants, ABC Corporations (1-10), are also liable as a matter of direct liability in that defendants, Jenkins and Zmigrodski, and/or defendants John Doe (1-10) as managers and supervisors, acted within the scope of their employments and wrongfully and illegally acted against plaintiff. 35. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: a.. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. COUNT FOUR 36. Plaintiff repeats and realleges each and every allegation contained in the prior Counts and make the same a part hereof as if set forth at length herein. 9

37. Defendant, Perth Amboy Board of Education, owed a duty to Ms. Sakowski as an employee to hire and retain qualified employees to serve as supervisors and managers of its business. 38. Defendant, Perth Amboy Board of Education, owed Ms. Sakowski a duty to properly oversee, train and supervise individuals, including defendants, Jenkins and Zmigrodski, with supervisory or managerial positions about illegal employment discrimination and harassment. 39. Defendant, Perth Amboy Board of Education, owed Ms. Sakoski a duty to place into effect and enforce meaningful policies against unlawful employment discrimination and harassment and undertake meaningful investigations in response to complaints by its employees that alleged illegal employment discrimination and harassment. 40. Defendant, Perth Amboy Board of Education, breached each of these duties. 41. These breaches are in violation of the protections and guarantees of the Law Against Discrimination, N.J.S.A. 10:5-1, et seq. 42. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: a.. Compensatory damages; b. Punitive Damages; 10

c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. COUNT FIVE 43. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth at length herein. 44. Defendants intentionally, willfully, maliciously and without justification sexually harassed, discriminated and otherwise acted against Ms. Sakowski with the intent of causing severe emotional distress. 45. Defendants' conduct was extreme and outrageous. 46. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: a. Compensatory damages; b. Punitive Damages; 11

c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. COUNT SIX 47. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth at length herein. 48. The previously-described actions of defendant, Combs amounted to an assault against Ms. Sakowski, as Ms. Sakowski reasonably believed that defendant, Combs would commit an unconsented-to touching of her person and physical harm against her. 49. Defendant, Perth Amboy Board of Education is responsible for the assault against Ms. Sakowski under respondeat superior and agency principles and for its own acts and omissions in failing to prevent the illegal and violent conduct of defendant, Combs. 50. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: 12

a. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. COUNT SEVEN 51. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth at length herein. 52. The previously-described actions of defendant, Combs amounted to a battery against Ms. Sakowski, as his illegal and wrongful conduct resulted in an unconsented-to touching of her person and physical harm against her. 53. Defendant, Perth Amboy Board of Education is responsible for the battery against Ms. Sakowski under respondeat superior and agency principles and for its own acts and omissions in failing to prevent the illegal and violent conduct of defendant, Combs. 54. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. 13

WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief a. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e, Such other relief as the Court may deem just and equitable. COUNT EIGHT 55. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth.at,lengththerein. 56. The previously-described actions of defendant, Combs amounted to false imprisonment against Ms. Sakowski. 57. Defendant, Perth Amboy Board of Education is responsible for the false imprisonment against Ms. Sakowski under respondeat superior and agency principles and for its own acts and omissions in failing to prevent the illegal and violent conduct of defendant, Combs. 58. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and 14

humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief a. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. COUNT NINE 59. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth at length herein. 60. The previously-described actions of defendants, Jenkins, Zmigrodski, and/or Combs were negligent, grossly-negligent, wanton and willful, careless, reckless, outrageous and/or intentional. 61. Defendant, Perth Amboy Board of Education is responsible for such conduct under respondeat superior and agency principles and for its own acts and omissions in failing to prevent the wrongful and illegal conduct of defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents. 62. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, 15

supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future COUNT TEN 63. Plaintiff repeats and realleges each and every allegation made in the previous Counts and make the same a part hereof as if set forth at length herein. 64. Plaintiff, Kara Sakowski, is female and a member of a protected class under the Law Against Discrimination, N.J.S.A. 10:5-1, et seq., and, at all times mentioned in this Complaint, was engaged in a protected activity, known by defendants and its employees, servants and agents. 65. At all times mentioned in this Complaint, defendant, Perth Amboy Board of Education, operated, owned and/or otherwise controlled, a place of public accommodation under the Law Against Discrimination, N.J.S.A. 10:5-1, et seq. 66. Throughout Ms. Sakowski's employment with defendant, Perth Amboy Board of Education, and at the special invitation and knowledge of defendant, Perth Amboy Board of Education, plaintiff entered onto defendant's property for the purpose of teaching. 67. Based upon the previously-described actions and omissions of defendants and/or their employees, agents and/or servants, defendants and/or their employees negligently, intentionally, wantonly and willfully, carelessly, maliciously and without justification sexually harassed and discriminated against Ms. Sakowski. 16

68. The aforementioned actions and omissions of defendants and/or their employees, agents and servants, prevented Ms. Sakowski from obtaining all accommodations, advantages, facilities and privileges of a place of public accommodation. 69. The aforementioned actions and omissions of defendants and/or their employees, agents and servants were in violation of the protections and guaranties of the Law Against Discrimination, N.J.S.A. 10:5-1, et seq. 70. As a direct and proximate result of the actions, omissions and/or failures of the defendants and defendant, Perth Amboy Board of Education's upper level management, supervisors, employees and agents to lawfully and properly act, Kara Sakowski was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and economic loss and will continue to suffer such distress, anguish, embarrassment, humiliation and economic loss into the future. WHEREFORE, plaintiff, Kara Sakowski, demand judgment against the defendants, and seek the following relief: a. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. 17

COUNT ELEVEN 71. Plaintiff repeats and realleges each and every allegation made in the previous Counts and makes the same a part hereof as if set forth at length herein. 72. As a result of the unreasonable and negligent, intentional, willful and wanton, careless and intentional conduct of the defendants and/or their employees, agents and servants, plaintiff was caused to suffer severe mental and emotional distress, anguish, embarrassment and humiliation, and will continue to suffer such distress, anguish, embarrassment and humiliation into the future. WHEREFORE, plaintiff, Kara Sakowski, demands judgment against the defendants, and seek the following relief: a. Compensatory damages; b. Punitive Damages; c. Expenses, costs of suit and attorneys' fees pursuant to applicable statutory and case law of this State; d. Prejudgment and post-judgment interest; and e. Such other relief as the Court may deem just and equitable. JURY DEMAND Plaintiff demands a trial by jury as to all of the issues contained herein. DESIGNATION OF TRIAL COUNSEL Pursuant to R. 4:5-1, John E. Keefe, Jr., is designated as trial counsel for plaintiffs in the within matter. 18

DEMAND FOR DISCOVERY OF INSURANCE INFORMATION Pursuant to the applicable New Jersey Rules of Court, plaintiffs hereby demand discovery of any and all insurance information of the defendants. CERTIFICATION Pursuant to R. 4:5-1, it is hereby stated that the matter in controversy is not the subject of any other action pending in any other court or of a pending arbitration proceeding to the best of our knowledge and belief. Further, other than the parties set forth in this pleading, at the present time we know of no other parties that should be joined in the within action. KEEFE BARTELS Attorneys for the Plaintiffs Dated: / 1 19

SETTLEMENT AGREEMENT AND RELEASE THIS SETTLEMENT AGREEMENT AND RELEASE ("Agreement" or "Release") is made this io of March 2014, by and between Kara Sakowski ("Sakowski" or "Plaintiff") and the Perth Amboy Board of Education ("Board"), Roland Jenkins and Thomas Zmigrodski ("Board Defendants") only (Plaintiff and the Board Defendants are sometimes hereinafter collectively referred to as the "Parties" and each may be referred to severally as a "Party"). WHEREAS, Plaintiff brought an action entitled Kara Sakowski v. Perth Amboy Board of Education, Roland Jenkins, Thomas Zmigrodski and Eric Combs, a civil action filed in the Superior Court, Law Division, Middlesex County, bearing Docket No. MID-L-418-11, (hereinafter "Action"); and WHEREAS, the Board, Roland Jenkins and Thomas Zmigrodski (collectively referred to as the "Board Defendants" denied the allegations made in. the Action; and WHEREAS, the Parties have decided to enter into a settlement of all claims asserted by Sakowski against the Board Defendants; and WHEREAS, the Parties intend to recite, by way of compromise and accord, without adjudication of any issues of fact or law and without any admission of liability, all claims which were either raised or which could have been raised in the Action, which claims are more fully described below; and NOW THEREFORE, in consideration of the foregoing and of the mutual agreements contained herein, and intending to be legally bound, the Parties mutually agree as follows: 1. RECITALS The above recitals are hereby referred to and incorporated by reference. {K13249709.1 000035-09663}1

2. SCOPE OF AGREEMENT This Agreement sets forth the terms and conditions under which the Parties mutually agree to resolve the following claims: (a) all claims in the Action by and between Sakowski and the Board Defendants (including but not limited to all claims, counterclaims, cross-claims and third-party claims, including any claim against any current or former employee, agent, member or representative of the Board and specifically including claims for attorneys' fees and costs) which were raised or could have been raised, whether in the Action, by post-judgment motion in the Action or by subsequent action. It is the Parties' mutual intention to settle (through this Agreement) all claims as specified in subpart (a) immediately above. As a result, all claims specified in subpart (a) immediately above are hereinafter referred to and defined as "the Settled Claims." The Parties specifically agree that there are no claims which have been raised or could have been raised by them to date against each other in the Action other than the Settled Claims. The Parties do recognize there may be other claims which this Agreement does not resolve, which are: (b) claims, if any, arising from the breach of this AgreementAs a result, the claims specified in subpart (b) are specifically excluded from the Settled Claims. In full compromise of the Settled Claims and in consideration for the Release as more fully set forth at paragraph 5 below and the Stipulation of Dismissal With Prejudice and Without Costs attached as Exhibit A, the Board will make payment to Plaintiff as set forth in paragraph 3 below. (KB2497091 000035-09663)2

3. PAYMENT The Board shall pay Plaintiff the total sum of one hundred and ninety-nine thousand and nine hundred and ninety-nine dollars ($199,999.00)("Settlement Amount"), which payment shall constitute full consideration for the execution of this Agreement and any other documents necessary to resolve and compromise the Settled Claims, with finality and with prejudice. The settlement proceeds will be payable, in full, by the New Jersey School Boards Association Insurance Group ("NJSBAIG") and/or the Board, to Plaintiff. This payment is given in full payment and satisfaction for all alleged damages in the Action including, but not limited to, all claims against the Board Defendants for back pay, compensatory damages, bodily injury, personal injury, emotional distress damages, punitive damages, attorneys' fees, and costs allegedly incurred by Plaintiff. This Agreement was approved by the Board on March 6, 2014, at its public meeting in accordance with Section 17 of this Agreement. A settlement check will be issued to "Keefe Bartels in Trust for Kara Sakowski" in the amount of one hundred and ninety-nine thousand and nine hundred and ninety-nine dollars ($199,999.00) and will be delivered to Keefe Bartels, 170 Monmouth Street, Red Bank, New Jersey 07701, within ten (10) business days of the Plaintiff executing and transmitting this Agreement and Release to counsel for the Board Defendants. An IRS Form 1099 will also be issued to Keefe Bartels along with the settlement check. The Parties intend that the Settlement Amount to the Plaintiff constitutes payment to Plaintiff on account of personal physical injuries and/or physical sickness all within the meaning of Section 104 of the Internal Revenue Code of 1986, as amended. The Parties further agree that no portion of the Settlement Amount represents punitive damages or payments in lieu of punitive damages. The parties further agree to consistently treat the Settlement Amount for tax and {K8249709.1 000035-09663}3

financial statement purposes in accordance with the characterization given such Settlement Amount in this Agreement. Plaintiff agrees and acknowledges that neither the Board Defendants, NJSBAIG or Plaintiff's counsel have made, nor she does not rely upon, any representation regarding the tax treatment of the sums paid pursuant to this Agreement. Plaintiff further agrees and understands that she has been instructed by Plaintiff's counsel to consult with an accountant or other tax professional regarding the tax treatment of the sums paid pursuant to this Agreement prior to executing this Agreement. The Board Defendants and NSBAIG make no representations as to the tax consequences of the payment referred to herein and shall assume no responsibility for any tax liability potentially attributable to PlaintiffPlaintiff agrees to indemnify and hold the Board Defendants and the NJSBAIG harmless from any claims, assessments, demands, penalties and interest owed, or found to be owed, as a result of any payment made to this Agreement. Plaintiff understands that her attorney, Keefe Bartels, will execute a W-9 form or any other applicable tax form required by the Board and/or NJSBAIG for the issuance of the settlement check. Except as otherwise provided in this Agreement, it is further understood that as a condition of this settlement, all claims and/or liens, past, current and/or future arising out of this settlement or asserted against the proceeds of this settlement are to be satisfied by Plaintiff, including but not limited to any Medicare or Medicaid claims and/or liens, Workers' Compensation claims and/or liens, Social Security claims and/or liens, hospital/healthcare insurer claims and/or liens, physician or attorney claims and/or liens, or any of the statutory, equitable, common law or judgment claims and/or liens, including but not limited to claim based on subrogation or any other legal or equitable theory. Plaintiff therefore agrees, upon prompt (KB249709.1 000035-09663)4

presentation of any such claims and/or liens, to defend the Board Defendants and NJSBAIG against any such claims and/or liens, and to indemnify and hold the Board Defendants and NJSBAIG harmless against any judgment entered against Plaintiff based on such claims and/or liens, including the payment of any fines, charges and attorney's fees incurred as a result of any such lien. Failure to satisfy any such lien shall be considered a breach of this Agreement and Plaintiff agrees to pay all costs, interest and attorney's fees relative to any such lien. To the extent that the Board could have asserted a lien against the settlement proceeds of this Agreement paid to Sakowski arising out of and related to the claims asserted in the Action, such lien is waived and shall not be enforced by the Board. This provision shall not serve to prevent the Board from asserting a lien against any third-party related to the benefits paid to Sakowski. 4. NO ADMISSION OF LIABILITY This Agreement is a result of a compromise and accord to buy the Parties' peace. It is expressly understood and agreed that nothing contained in this Agreement is intended to be, nor shall be construed as, nor shall be represented by any party, their attorneys or their agents to be, as an admission or determination of liability by the Board Defendants, or their agents employees or members, as to the validity of any claims asserted or assertable in the Settled Claims, as the Board Defendants continue to deny any liability and disclaim any responsibility for such claims. It is agreed that this Agreement shall not be used by any party as evidence or in any other matter or for any other purpose in any court proceeding or any other proceeding except for an action arising under paragraph 2(b) of this Agreement, or in an action concerning any Party's tax status. 5. RELEASE AND EXTINCTION OF CLAIMS Plaintiff agrees to and hereby releases and gives up any and all claims and rights which Plaintiff may have against the Board Defendants, the Board's current and former officers and (KB249709.1 000035-09663)5

employees, members, attorneys, successors, assigns and heirs, and NJSBAIG. This releases all claims, including those of which Plaintiff is not aware and those not mentioned in this Release. This Release applies to claims resulting from anything which has happened up to now. Plaintiff specifically releases the following claims: any and all claims, direct and indirect, and rights for any injury and/or damage which Plaintiff may have against the Board Defendants, specifically including but not limited to, all claims asserted in the Action. Plaintiff hereby releases all claims against the Board Defendants that were asserted or could have been asserted in the Action, including all claims revealed or which may have been revealed through discovery, including, but not limited to depositions, answers to interrogatories, medical reports, and throughout settlement negotiations, any related torts (specifically including but not limited to claims for civil battery, civil assault, outrage, intentional and negligent infliction of emotional distress) and claims of discrimination and retaliation, and emotional injuries accompanied by physical manifestations, and also releases any claims which she may have for attorneys' fees, expenses of litigation and/or costs of suit, whether based upon statute, regulation, court rule or common law. Plaintiff acknowledges that the settlement terms to which the Parties have agreed include, but are not limited to, any claims for attorneys' fees, back or front pay, any claims for emotional distress or pain and suffering, any claim involving tax liability stemming from this settlement and any claims arising under federal, state, or local laws, or ordinance, claims alleging employment discrimination, claims arising under the common law for breach of contract and negligence. Plaintiff further acknowledges that the settlement and release terms to which the Parties have agreed include, but are not limited to, any and all claims or rights arising as of the date of execution of this Agreement under the Age Discrimination in Employment Act, as amended, 29 U.S.C. 621, et. the Older Worker Benefit Protection Act ("OWBPA"), the Civil Rights (KB249709.1 000035-09663)6

Acts of 1964 and 1991, 42. U.S.C. 2000e, et an.., Title VII of the Federal Civil rights Act of 1964, as amended 42 U.S.C. 2000 (3), et seq., Americans with Disabilities Act, Employee Retirement Income Security Act, the Federal Family and Medical Leave Act, the Fair Labor Standards Act, the Equal Pay Act, the Workers' Adjustment and Retraining Notification Act, the New Jersey Law Against Discrimination, N.J.S.A. 10:5-1, et nq., the New Jersey Family Leave Act, the New Jersey Wage and Hour Law, the Employer-Employee relations Act, any collective negotiations agreement, any common law claim and any other claims for harassment, discrimination, or retaliation of any kind, breach of promise, misrepresentation, negligence, fraud, estoppel, violation of public policy, wrongful or constructive discharge or any other tort, contractual or quasi-contractual claim. Plaintiff understands, agrees to and acknowledges that she is bound by this Release. Anyone who succeeds to her rights and responsibilities, such as Plaintiff's heirs or the executors of Plaintiff's estate are also. bound. This Release is made for the benefit of the Board Defendants and NJSBAIG and all who succeed to their rights and responsibilities. In consideration for this Release, Plaintiff has received promises from the Board, as set forth more fully in paragraph 3. 6. NON-DISPARAGEMENT As set forth in Paragraph 4 of this Settlement Agreement and Release, the Parties acknowledge that there has been no determination of liability nor has there been any admission of liability. The parties agree not to disparage any other Party or any former or current Board employees. The Parties shall neither solicit nor make any comments, statements or the like to others regarding any other Party or Board employees related to any claim asserted or issue that arose in the Action or related to this Agreement that could adversely affect the reputation, image, goodwill, commercial or public interest of that entity or individual or which may be considered (KB249709.1 000035-09663)7

derogatory or disparaging. This provision shall not apply to any statements made by any Party in testimony or in papers filed in this Court action or in other legal matters in which he/she/it is a party. Additionally, this provision shall not apply to any statements made by the Board or its employees related to the Plaintiffs performance of her job functions or duties, as she is currently still an employee of the Board. The provisions of this paragraph are material to this Agreement and any breach of these provisions shall constitute a material breach of the entire Agreement, thus affording any Party, as applicable, any and all remedies available at law and/or equity, including, without limitation, injunctive relief and/or monetary damages. In the event of a claimed breach of this Agreement, any Party may seek relief, including damages, restitution and injunctive relief, at law or in equity, subject to the exclusive jurisdiction of the Courts of the State of New Jersey, yenned in Middlesex County. 7. NO RIGHTS CONFERRED UPON NON-PARTIES This Agreement is intended to confer rights and benefits only upon Sakowski and the Board Defendants and is not intended to confer any right or benefit upon any other person or entity. No person or entity other than the Parties shall have any legally enforceable rights under this Agreement. All rights of action for any breach of this Agreement are hereby reserved to the Parties. 8. COVENANT OF GOOD FAITH AND FAIR DEALING The Parties expressly agree that their performance under this Agreement is to be governed by a covenant of good faith and fair dealing. No Party will take any action which would deprive another of the full benefit of the agreement. (10249709.1 000035-09663)8

9. FULL UNDERSTANDING This Agreement sets forth the complete understanding and entire Agreement between the parties and supersedes any and all prior agreements or understandings between the Parties. This Agreement may not be modified, altered, changed, discharged, terminated or waived except upon express written consent of the parties wherein specific reference is made to this Agreement. It is agreed that there are no other understandings or agreements (either written or oral) which would have any impact upon the present Action. By executing this Agreement, Plaintiff represents and acknowledges that she does not rely, and has not relied upon, any representation or statement not set forth in this Agreement made by Board Defendants or their counsel with regard to the subject matter, basis, or effect of this Agreement or otherwise. 10. MATERIALITY The Parties agree that each paragraph of this Agreement is material. In the event that any portion of this Agreement is determined to be illegal, the Parties agree, in advance, to reform the Agreement in good faith to provide each Party with the full benefit of the settlement memorialized by this Agreement to the extent permitted by law. 11. REVOCATION PERIOD Plaintiff acknowledges that she was given the opportunity to fully consider this Agreement for a period of up to twenty-one (21) days to review this Agreement and seven (7) days from the execution of this Agreement to revoke this Agreement by delivering written notification to Perry L. Lattiboudere, Esq., Adams Gutierrez, & Lattiboudere, L.L.C. It is understood that if this Agreement is revoked, it will not be effective or enforceable and Plaintiff will not be entitled to the entire consideration described herein. Plaintiff, however, has {KB249704.1 000035-09663)9

voluntarily agreed to waive the twenty-one (21) day period and the seven (7) day revocation period provided for pursuant to the OWBPA. 12. CONFIDENTIALITY The Parties agree to keep the existence and substance of this Agreement and the settlement giving rise to this Agreement and the sums of money paid and to be paid pursuant to this Agreement strictly confidential to the fullest extent permitted by law. The Parties are expressly forbidden from discussing this Agreement with any person, other than to each other, their immediate families, accountants, auditors, tax advisers and attorneys ("permitted disclosures"), and to any other individual or entity as necessary to implement the Agreement or to which they are legally obligated to respond ("legally-required disclosures"). In making any permitted disclosure, the Parties agree that they will tell the person to whom they are making the permitted disclosure that the existence and substance of this Agreement, the settlement giving rise to this Agreement and the sums of money paid and to be paid pursuant to this Agreement are to be held strictly confidential. The Parties specifically agree not to discuss the nature, terms, conditions of this Agreement with, among others, any representative of the media or any past, present, or prospective employee of the Board Defendants, or their agents or attorneys. The Parties understand that this provision is not a simple recital but is an important, integral part of this Agreement. 13. SERVICES OF COUNSEL The Parties certify that they have had the opportunity to discuss this Agreement with counsel. They are fully satisfied with the services of their counsel with respect to both this Agreement and all other aspects of the Action and they enter into this agreement knowingly, willingly and without any coercion or improper inducements. (K13249709.1 000035-09663)10

14. AUTHORITY OF SIGNATORIES Each signatory represents that she or he is a Party or has been duly authorized by a Party to sign on that Party's behalf and that in the case of the Board all corporate formalities attendant to the execution of this Settlement Agreement and Release have been satisfied. The signatory for the Board further covenants that he or she is duly empowered by the Board and its current members to sign this agreement on behalf of the Board and its members in their official capacities and that there is no legal reason (i.e., receivership or bankruptcy) which prevents or will prevent the Board from completely performing its obligations under this agreement, 15. LAW GOVERNING This Agreement shall be governed by the laws of the State of New Jersey and any dispute arising out of this Agreement shall be subject to the exclusive jurisdiction of the Courts of the State of New Jersey. 16. MEDICAID AND SCHIP EXTENSION ACT OF 2007 As a condition of full and final settlement of this matter, Plaintiff agrees to complete, execute and return to Perry L. Lattiboudere, Esq., Adams Gutierrez & Lattiboudere, LLC, the form attached to the Agreement as Exhibit B relating to the Medicaid and SCHIP Extension Act of 2007, which is hereby expressly incorporated as part of the parties' Agreement, 17. BOARD OF EDUCATION APPROVAL The herein Agreement was subject to the Board of Education's approval, which was provided on March 6, 2014. {KB249709.1 000035-09663)11

18. EXECUTION IN COUNTERPARTS The Parties agree that this agreement may be signed in counterparts and that facsimiles of signatures will have the same force and effect as original signatures. WITNESS Dated:3 - ).0 %f Dated: / /e( 6 DEFENDANT, PERTH AMBOY BOARD OF EDUCATION By: C (3bu 6,1'0,-,mjaA,- {KB249709.1 000035-09663)12