SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS

This Settlement Agreement (“Agreement”) is entered into by and between Tonya

M. Sconiers (“Plaintiff”), Independent School District No. 709, Duluth Public Schools
(“District”), William Gronseth (“Gronseth”) and Jeffrey Horton (“Horton”). Gronseth and
Horton will be collectively referred to in this Agreement as “Individual Defendants.”
Plaintiff, District, and the Individual Defendants will be collectively referred to in this
Agreement as “the Parties.”

WHEREAS, Plaintiff is a former employee of the District;

WHEREAS, the District is a public school district operating in Duluth, Minnesota;

WHEREAS, Gronseth is the former Superintendent and Horton is the former

Assistant Superintendent in the District;

WHEREAS, on or about September 9, 2019, Plaintiff filed a lawsuit against the

District and Individual Defendants in federal District Court for the District of Minnesota
captioned Tonya M. Sconiers v. Duluth Public Schools, I.S.D. No. 709, William Gronseth,
and Jeffrey Horton;

WHEREAS, the above-captioned lawsuit was assigned Case No. 19-CV-02468

(MJD/LIB);

WHEREAS, Plaintiff was represented by Benjamin R. Kwan and C. Ted Haller IV

of Haller Kwan LLP, and the District and Individual Defendants were represented by Amy
E. Mace and Elizabeth J. Vieira of Rupp, Anderson, Squires & Waldspurger, P.A.;

WHEREAS, the Parties mutually desire to avoid the burden and expense of
protracted litigation and wish to resolve their dispute on the terms set forth below;

NOW, THEREFORE, IN CONSIDERATION OF the mutual promises contained

in this Agreement, including the relinquishment of certain legal rights, and other valuable
consideration, the sufficiency of which is acknowledged, the Parties now agree as follows:

1. One-Time Payment. In exchange for the agreement to dismiss with prejudice

Plaintiff’s lawsuit against the District and Individual Defendants, and the release of
claims set forth in this Agreement, the District will make a one-time payment
totaling three-hundred and twenty-nine thousand dollars ($329,000.00). This
payment will be made to Haller Kwan LLP and Tonya M. Sconiers within ten (10)
days of the final approval of this Agreement by the School Board. The payment
may be made via more than one check (from the District or from its insurer), with
the total payment equaling $329,000.00. The payment will be allocated as follows:

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 A. A check or checks will be tendered and made payable to Tonya M.
Sconiers and delivered to her counsel, Haller Kwan LLP, at 323
Washington Ave. N., Suite 200, Minneapolis, Minnesota 55401, and
Tonya M. Sconiers will accept, payment in the net and total amount of
$229,411.33. A 1099 Income Tax form will be issued to Tonya M.
Sconiers reflecting this payment;

B. A check or checks will be tendered and made payable to Haller Kwan

LLP and delivered to Haller Kwan LLP at 323 Washington Ave. N., Suite
200, Minneapolis, Minnesota 55401, and Haller Kwan LLP will accept,
payment in the net and total amount of $99,588.67. A 1099 Income Tax
Form will be issued to Haller Kwan LLP reflecting this payment for
alleged attorney fees and costs.

2. Meeting Regarding Implicit Bias. In addition to the payment identified in

Paragraph 1, in exchange for the dismissal with prejudice of Plaintiff’s lawsuit
against the District and Individual Defendants, the District agrees to schedule a
meeting with Thomas Newkirk of Implicit Bias Campus regarding implicit bias and
the District’s ongoing equity efforts. The District will pay Mr. Newkirk’s
customary hourly rate for his time, but the District’s payment for the meeting will
not exceed one-thousand dollars ($1,000.00). The District agrees that its current
Superintendent will attend the meeting along with one member of the School Board
and one member of the District’s administrative team to be selected at the sole
discretion of the current Superintendent. The District has sole discretion to
determine whether to engage Mr. Newkirk for any additional services after one
meeting.

3. No Admission of Wrongdoing. The District and Individual Defendants deny the

allegations set forth in Plaintiff’s lawsuit and are entering into this Agreement for
the sole purpose of avoiding the costs and burdens associated with protracted
litigation. This Agreement is made in compromise of disputed claims and is not to
be construed as an admission of liability or wrongdoing by or on behalf of the
District, Individual Defendants or any other party identified in interest with the
District or Individual Defendants.

4. No Further Claim to Compensation. Plaintiff shall have no claim whatsoever to

any compensation, benefits, or payments of any nature except as expressly stated in
this Agreement.

5. Dismissal of Lawsuit. In exchange for the terms outlined in Paragraphs 1 and 2,

plus execution of this Agreement by the District and the Individual Defendants,
Plaintiff will dismiss with prejudice her pending lawsuit against the District and
Individual Defendants. Within five (5) business days of the receipt by counsel for

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 Tonya M. Sconiers of the payments outlined in Paragraph 1 of this Agreement,
counsel for the Parties will prepare a stipulation of dismissal with prejudice and
without costs to be signed by counsel for the Parties and filed by counsel for
Plaintiff.

6. Release of Claims by Plaintiff. The District, on behalf of itself and the Individual
Defendants, has agreed to provide Plaintiff with certain benefits and privileges that
she would not otherwise be entitled to receive in the absence of this Agreement. In
consideration for those benefits and privileges, and as an inducement for the District
and Individual Defendants to enter into this Agreement, Plaintiff hereby fully and
completely releases, acquits, and forever discharges the Individual Defendants, the
District, its current and former Board members, administrators, officers, employees,
agents, representatives, their insurers (including Liberty Mutual Insurance,
Ameritrust Group, Inc. and any other applicable insurers), attorneys, and other
affiliates from any and all liability for any and all damages, actions, or claims –
regardless of whether they are known or unknown, direct or indirect, asserted or
unasserted – that arise out of or are related to any action, decision, event, fact, or
circumstance occurring before Plaintiff signs this Agreement. Plaintiff understands
and agrees that by entering into this Agreement with the District and the Individual
Defendants, she is waiving and releasing any and all claims, complaints, causes of
action, and demands of any kind that are based on or arise under any federal or state
law, including but not limited to the federal and state constitutions, or any federal
or state statutes, regulation, rule, or common law.

7. Claims Not Waived. By signing this Agreement, Plaintiff does not release or waive
the following: (a) any rights or claims that are based on any events that occur after
she signs this Agreement; (b) any right to institute legal action for the purpose of
enforcing this Agreement; (c) any right to apply for unemployment compensation
benefits, although the District may contest such application; (d) any claims arising
under the Workers’ Compensation Act, although the District or its insurer may
contest such claims; or (e) any right to file a charge with a governmental agency,
including the Equal Employment Opportunity Commission, although the District
may contest such a charge and Plaintiff agrees that she will not be able to recover
any award of compensation, damages, or any other monies if she files a charge or
complaint or has a charge or complaint filed on her behalf with any federal, state,
or local government agency.

8. Release of ADEA Claims. Plaintiff recognizes that by signing this Agreement she
is waiving and releasing any employment discrimination, retaliation, or other claims
she might have under the Age Discrimination in Employment Act (“ADEA”).
Plaintiff further acknowledges that she has been advised to consult with an attorney
prior to signing this Agreement, that she has been advised of her right to review and
consider her release of any claims under the ADEA for a period of twenty-one (21)

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 days. If she signs this Agreement before twenty-one (21) days have elapsed from
the date on which she first received a copy of this Agreement to review, she will be
voluntarily waiving her right to the full twenty-one (21) day review period.

9. Revocation of ADEA Release of Claims. Plaintiff acknowledges that after she

signs this Agreement she will have seven (7) days during which she may revoke her
waiver and release of claims arising under the ADEA. Plaintiff acknowledges that
this right of revocation applies only to any claims she may have under the ADEA.
Plaintiff further acknowledges that for her rescission to be effective, it must be
delivered to the District’s Superintendent John Magas, 215 North 1st Avenue East,
Room 213, Duluth, MN 55802 either personally by a third party courier or by United
States Mail within the seven-day revocation period. If delivered by mail, the
revocation must be postmarked within the seven-day period, properly addressed to
the Superintendent, and sent by certified mail, return receipt requested.

10. Effect of Revocation or Rescission. If Plaintiff revokes or rescinds any part of her
release of all claims pursuant to her rights under Paragraph 9 above, the District and
its insurer will not be required to make the payment outlined in Paragraph 1 or attend
the meeting identified in Paragraph 2. The District will instead pay Plaintiff the
sum of one dollar ($1.00). The remainder of this Agreement and the release of all
claims set forth in this Agreement and all other provisions of this Agreement will
remain in full force and effect.

11. Data Practices. Plaintiff acknowledges that in the course of her employment with
the District she had access to educational and personnel data and other forms of data
that are protected from disclosure under federal and state law. Plaintiff may not
disclose or make any such private or confidential information available to any third
person, unless specifically authorized to do so by court order or by the District’s
Superintendent.

12. No Future Employment. Plaintiff agrees that she will not seek or apply for future
employment or paid consulting with the District. Plaintiff agrees she may
participate in volunteer opportunities with the District only if: (1) the volunteer
opportunity is available to community members; or (2) if Plaintiff has one or more
grandchildren enrolled in the District, volunteer opportunities available to her as a
grandparent of enrolled student(s).

13. Confidentiality. Plaintiff and her attorney agree they will not, directly or indirectly,
disseminate or disclose this Agreement or the terms of this Agreement to any person
or entity other than her spouse or legal counsel or tax advisor, except as required in
order to do the following: report income to a taxing authority, implement or enforce
this Agreement, or respond to a court order or subpoena. Plaintiff agrees that, in the
event the Agreement is made public, Plaintiff will limit any statements about the

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 Agreement to the following: “As part of the settlement, I agreed not to speak about
the agreement; I’m happy to be moving forward.” Plaintiff’s counsel will limit any
statements to: “the Agreement speaks for itself and Ms. Sconiers is focused on
moving forward.” Plaintiff understands that the District’s and Individual
Defendants’ disclosure of this Agreement will be governed by the requirements of
the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13,
(“MGDPA”) and any other applicable law. Nothing in this Agreement will prevent
the District or Individual Defendants from responding to a proper data request to the
extent required by law, including the MGDPA.

14. Liens, Subrogation, and Indemnification. Plaintiff understands and agrees that
she is solely responsible for satisfying any conditional payments, liens, subrogation
claims, demands for payment, and all other obligations to reimburse any
governmental entity, governmental program, public or private insurer, or other
source of payment or benefits furnished to her now or any time in the future,
including, but not limited to, any claims or demands for repayment or
reimbursement of payments made for medical services or prescription medications.
Plaintiff agrees to indemnify and hold the District, Individual Defendants, their
insurers, their attorneys, and any other representative of the District harmless from
any and all claims and losses, including costs and attorneys’ fees and any other
amount required for their defense, associated with any conditional payment, lien,
subrogation claim, or other claim or demand asserted by any governmental entity,
governmental program, public or private insurer, or any other source of payment or
benefits that have been furnished to Plaintiff.

15. Medicare. The District and Individual Defendants, along with their insurers, and
Plaintiff have sought to protect the interests of Medicare. It is not the intention of
any party to shift to Medicare responsibility for coverage or payment of medical
services or expenses relating to any alleged damages. Based on a thorough review
of relevant facts and circumstances, Plaintiff acknowledges that a determination was
made, and that Plaintiff has so warranted and advised the District and Individual
Defendants that:

a. With regard to any damages that Plaintiff has allegedly suffered, Plaintiff has
not claimed or received, and will not claim in the future, health insurance
coverage through Medicare in any form whether it be Medicare Part A -
Hospital Insurance, Medicare Part B - Medical Insurance, Medicare Part C -
Medicare Advantage Plan Coverage or Medicare Part D - Prescription Drug
Coverage.

b. Plaintiff has not claimed or received, and will not claim in the future,
Medicare benefits because of certain disabilities (as defined by Medicare) or
End-Stage Renal Disease (permanent kidney failure requiring dialysis or a

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 kidney transplant) for any treatments associated with any damages that
Plaintiff has allegedly suffered because of the District and Individual
Defendants.

c. In the unexpected event that Plaintiff incurs any expenses for medical care
or treatment that is or may be related to any alleged damages caused by the
District and Individual Defendants, Plaintiff agrees that she will not file any
claim with Medicare for such future medical care or treatment. Plaintiff
agrees to be solely responsible for payment of any future medical expenses
that are or may be related to any damages that Plaintiff allegedly suffered
and not to shift the responsibility to Medicare.

d. Plaintiff agrees to indemnify and hold harmless the District and Individual
Defendants, their insurers, their attorneys, and their other representatives for
and from any and all claims, expenses, and attorney fees relating thereto or
relating to any expenses covered or paid by Medicare for treatment related to
the injuries and/or damages which she claims to have been caused by the
District and Individual Defendants. In the event of such demand, Plaintiff
agrees to and will defend and hold harmless the District and Individual
Defendants, their insurers, their attorneys, and their other representatives
from any and all such liability, including such an amount required for their
defense, including their costs and attorneys’ fees. Plaintiff agrees that she
has advised the District and Individual Defendants, their insurers, their
attorneys, and their other representatives that she has no knowledge of any
Medicare lien or debt that may arise or have arisen relative to the damages
she claims to have been caused by the District and Individual Defendants.

16. Tax Consequences. Plaintiff acknowledges and agrees that neither the District,
Individual Defendants, nor any of their insurers, attorneys, agents, employees, or
representatives have made any statements or representations regarding the tax
consequences of the payment being made pursuant to this Agreement. It is
specifically agreed and understood by Plaintiff and her attorney that they are solely
responsible for determining any tax consequences and for paying any taxes owed
based on the payment made pursuant to this Agreement. Plaintiff agrees to
indemnify and hold the District and Individual Defendants harmless for any and all
taxes owed as a result of the payment made pursuant to this Agreement.

17. Voluntary Agreement. The Parties acknowledge that no person has exerted undue
pressure on them to sign this Agreement. The Parties are voluntarily choosing to
enter into this Agreement because of the benefits that are provided under this
Agreement.

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18. Costs and Attorney Fees. Each party is responsible for its own attorney fees, costs,
and expenses.

19. Choice of Law and Severability. This Agreement is governed by the laws of the
State of Minnesota. If any part of this Agreement is construed by a court of
competent jurisdiction to be in violation of any law, the remaining portions will
remain in full force and effect.

20. Equal Drafting. In the event that any Party asserts that a provision of this
Agreement is ambiguous, this Agreement must be deemed to have been drafted
equally by the parties.

21. Electronic Signature; Counterparts; Copies. Pursuant to the provisions of

Minnesota’s Uniform Electronic Transactions Act, either party may sign this
agreement electronically through an appropriate platform. This Agreement may be
executed in any number of counterparts and each of such counterparts will for all
purposes be deemed to be an original, and all such counterparts will together
constitute but one and the same instrument, which will be binding and effective only
upon execution by all parties hereto. A signed copy of this agreement will have the
same effect as an original.

22. Complete Agreement. This Agreement constitutes the full and complete
agreement between the Parties and a final resolution of any and all claims in
Plaintiff’s lawsuit against the District and Individual Defendants. By voluntarily
entering into this Agreement and accepting the payment outlined in Paragraph 1
after having an opportunity to consult with legal counsel, Plaintiff agrees to dismiss
her lawsuit against the District and Individual Defendants with prejudice and agrees
to take no further action to recover any of the damages alleged in Plaintiff’s
February 28, 2020 Amended Complaint. The Parties to this Agreement have not
relied on any promise, representation, statement, or inducement that is not expressly
stated in this Agreement.

[SIGNATURE PAGE FOLLOWS]

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By signing below, each party specifically acknowledges that it has reviewed the terms of
this Agreement with legal counsel; that it fully understands the terms of this Agreement;
and that it knowingly and voluntarily intends to be legally bound by the terms of this
Agreement.

TONYA M. SCONIERS

05 / 17 / 2021
Date: _______________________ _________________________________
Tonya M. Sconiers

INDEPENDENT SCHOOL DISTRICT NO. 709, DULUTH

May 18, 2021 Jill Lofald

Date: _______________________ _________________________________
Jill Lofald (May 18, 2021 19:21 CDT)

School Board Chair

Jill Lofald
WILLIAM GRONSETH

May 17, 2021

Date: _______________________ _________________________________
William Gronseth (May 17, 2021 20:58 CDT)

William Gronseth

JEFFREY HORTON

May 18, 2021

Date: _______________________ _________________________________
Jeff Horton (May 18, 2021 15:35 CDT)

Jeffrey Horton

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