Confidential Settlement Agreement

BAZATA V. AMERICAN BANK
CONFIDENTIAL SETTLEMENT AGREEMENT


This Confidential Settlement Agreement, hereinafter referred to as "the Agreement," is made by and between JAMES J. BAZATA, hereinafter referred to as "Bazata," on the one hand, and AMERICAN BANK, hereinafter referred to as "the Bank," on the other hand.


WHEREAS, Bazata was formerly employed by the Bank in various management positions; and


WHEREAS, in October, 1995, Bazata suffered a stroke, and he alleges that after this stroke, the Bank discriminated against him because it wrongly regarded him as disabled from work; and


WHEREAS, Bazata retained counsel to assist him in matters relating to his desire to return to work at the Bank, and alleged disability discrimination against him, and he further alleges that the Bank retaliated against him because of his retention of counsel;


WHEREAS, Bazata's employment with the Bank was involuntarily terminated on or about July 9, 1996; and


WHEREAS, following his discharge, Bazata filed charges with the Equal Employment Opportunity Commission alleging disability discrimination and unlawful retaliation against the Bank under the Americans with Disabilities Act ("ADA"); and


WHEREAS, Bazata filed a lawsuit against the Bank in the United States District Court for the Middle District of Florida, Tampa Division, Case No. 96-671-CIV-T-24A, hereinafter referred to as Case No. 96-671-CIV-T-24A; and


WHEREAS, the parties conducted a mediation on April 22, 1998, in Tampa, Florida, with Cary Singletary, Esquire, serving as mediator, and at that mediation entered into a settlement agreement relating to all of Bazata's claims and potential claims, and signing, as evidence of this settlement agreement, a handwritten term sheet for the settlement, with the understanding that more formal settlement documents would be prepared at a later date; and


ACCORDINGLY, this Agreement will settle and compromise all of Bazata's claims, including those alleged in Case No. 96-671-CIV-T-24A, as well as any claims that the Bank might have against Bazata;


NOW, KNOW ALL BY THESE PRESENTS, that in consideration of the mutual covenants to be performed by each of the parties hereto, the parties expressly, knowingly, and voluntarily agree as follows:


1. Bank's Retention of J. J. Bazata Consulting, Inc. as Consultant. The Bank agrees to retain James J. Bazata Consulting, Inc. as a consultant for the Bank through December 31, 2000. The terms of this consulting arrangement shall be set forth in a separate agreement between James J. Bazata Consulting, Inc. and the Bank (this agreement shall hereinafter be referred to as "the Consulting Agreement"). If for any reason the Consulting Agreement is terminated by the Bank prior to January 10, 2000, payments to be made under the Consulting Agreement will be made pursuant to this Agreement.


2. Payment of Bazata's Attorneys' Fees and Legal Costs. The Bank agrees to pay Bazata's attorneys in Case No. 96-671-CIV-T-24A the sum of TWO HUNDRED AND TWENTY FIVE THOUSAND U.S. DOLLARS ($225,000.00) for their work in representing Bazata in his litigation against the Bank, and for legal costs and expenses incurred during the course of their representation. Payment shall be by Bank check(s) payable to Abel, Band, Russell, Collier, Pitchford & Gordon, Chartered. This payment shall be made within thirty (30) days of the date the four duplicate originals of this Agreement, signed by Bazata, his counsel, his wife, and his adult children, and the two duplicate originals of the Consulting Agreement, signed by Bazata, are all delivered to the offices of the Bank's counsel for execution of the Agreement by the Bank signatories. If payment is not made within thirty days as agreed, interest shall be due on the unpaid balance at a rate of eighteen percent (18%) per year. If there is a collection action, the prevailing party in such suit shall be entitled to an award of a reasonable attorney's fee and costs of action.
3. Dismissal of Case No. 97-671-CIV-T-24A With Prejudice. Because the Mediator filed a mediation report following the mediation on April 22, 1998, the United States District Court for the Middle District of Florida, Tampa Division, has already entered an Order, dated April 29, 1998, dismissing the lawsuit without prejudice to the right of any party to re-open the action within sixty (60) days, for good cause. That Order provided that the parties could also submit a stipulated form of final judgment. The parties agree that the Court's record should be clear that Case No. 97-671-CIV-T-24A has been dismissed with prejudice, since that is in fact their intent and agreement, and accordingly their counsel are directed, through execution of this Agreement by the parties, to file such papers as may be required to record the dismissal of Case No. 97-671-CIV-T-24A with prejudice, including but not limited to the Stipulation of Dismissal with Prejudice attached as Exhibit "A" to this Agreement. It is expressly agreed and understood that this Agreement is conditioned upon and made subject to the dismissal of Case No. 97-671-CIV-T-24A with prejudice. If for any reason the dismissal with prejudice of that action is not consummated, or is subsequently vacated, then the Bank shall have the sole discretion to deem this Agreement and the Consulting Agreement null and void ab initio, except for the provisions of this paragraph, and if the Bank exercises that discretion Bazata and his counsel shall immediately return to the Bank all monies paid pursuant to th ...