SETTLEMENT AGREEMENT AND RELEASE ‘This Settlement Agreement and Release (“Agreement”) is entered into by and between Plainsift David Phillips, PhD,, (Dr Philips") and Defendants North Carolina Department of Public Instraction "NC DPI"), David Stegall, Sneha Shah Coltrane, Thomas Winton, nd Rodney K. Allen ("Defendants (collectively, “Partes”). RECITALS WHEREAS, Dr. Pillip initiated a lawsuit in Wake County Superior Court, File Number 22CVO1S616, on December 16,2027 (the {awasit), alleging that Defendants violated his rights ‘under the North Carolina Constitution, Specifically, De. Philips alleged that Defendants violated his right to ftee speech; discriminated agains him in violation of right to equal protection onthe basis of hs race, religion, and multiple ehaactritics; and violated his rights under the “Fruits of ‘Their Labor Clause.” WHEREAS, Defendants deny such claims; WHEREAS, Defendants moved o dismiss all of Dr. Phillips’s claims; WHEREAS, the Court dismissed Dr, Philips’ claims for violation of equal protection ‘bese on his religion and his claims fora violation of the “Fruits of Their Labor Clause” and denied Defendaats’ motion to dismiss his other claims; WHEREAS, the Parties desire to resolve the entre mater on mutually agreeable terms; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereby agree to the folowing terms of setlement in fll satisfaction ofall claims or potential clsims which have been, or could have ben, asterted by Dr. Phillips against Defendants (or their offices, agents or employees) or vice versa through the date ofthis Agreement: WARRANTIES A. Each Party warrants and represents to the other that they have been fully informed andhave fill knowiedge ofthe terms, conditions, and effects ofthis Agreement and that they enter into this Agreement with knowledge ofits content and of their own free wil, BB, Bach Party warrants and represents tothe other that no promise, commitment, agreement, or inducement has been offered or made, except as explicitly set forth inthis Agreement, to induce such Party to sign this Agreement and that this Agreement is being executed ‘without reliance upon any statement or representation by anyother Party or its agets. C. Each Party warrants and represents to the other that tis represented by competent counsel in connection withthe negotiation ofthis Agreement, that they have had ample time to confer with counsel prior tothe execution hereof and have done so prior to executing this ‘AgreementI, OBLIGATIONS ‘A. Inconsideratin forthe promises made by Defendant in Paragraph IB, below, Dr. Pills Within ten (10) business days of receipt of payment ofthe Settlement Amount, purruant to the requirements of Rule 41(s) of the North Carolina Rules of Civil Procedure, Dr. Philips will submit to the oar a Notice of Voluntary Dismissal with Prejudice of ll claims in theLawsuit against the Defendants, ‘Agee tothe terms ofthe mutual releases and assurances in Pragraph Il of ‘his Agreement; Agee to bear his own costs except those detailed below in Paragraph LB; ‘Agee, consistent with Paragraph IX ofthis Agreement, to be responsible foe ‘any and all federal, state, andlor local tox liability or consequences that could arte as a result ofthe pa}mens set forth in Paragraph ILB. below; and ‘Agee to never apply to workin any capacity atthe North Carolina Goverar’s School. BB. In consideraon for the promises made by Dr. Phillips in Paragraph ILA. above, Defendants wil do the following Within thity (30) business days of the Effective Date of the Agreement, pay Dr, Phillips in the grose amount of twenty-one thousand dolls (21,000). This emount wil be reported onan IRS Form 1099. The payment shull be made by check, made payable to David Philips and will be mailed. to David Phillips, 3008 Bannock Lane, Greensboro, NC 27410; ‘Within thet (30) business days ofthe Effective Date ofthe Agreement, he Board of Governors for the Governor's School will adopt the Electve ‘Seminars Policy thai attached Exhibit A and adit othe policy handBbcok, thot 2 provided to Governor's School sxnployess. While the Governce's ‘School adops this policy in good faith and with no plans to alter it the partes recognize that circumstances may change inthe future, and so the ‘Governor's School retains the authority to change this policy inthe fur, provided any change is consistent withthe First Amendment, the Nath Carolina Declaration of Rights, and eppicable law.Wy, 3. IENC DPI or the Governor’s School receives a request for employment ot recommendation for Dr. Philips, they will refer it to NC DPI's Human Resources Department, which will send all requests to BEST Shared Services to provide only his employment verification dat; and 4. Agree tothe terms ofthe releases and assurances in Paregreph I RELEASES AND ASSURANCES |A. Consideratior: The actions of the Defendants set forth in Paragraph IB, constitute good and valuable emsideration forthe ations by Dr. Phillips st forth in Paragraph ILA., and the actions ofthe Dr. Phillips st forth in Paragraph ILA. conatitute good and valusble ‘consideration forthe actions by the Defendants st forth in Paragraphs ILB. B. Release: ‘4 In exchange for and as consideration for the payments and services ited in tit Agreement, Dr. Phillips, his heirs, successors, guardians and assigns, hereby forever discharge and release the Defendants, the North Caroline State Board of Edducaton, the North Carolina Superintendent of Public Instruction, and al current and forner officers, agents, or employees of those entities (in both thei official and individsal especies), and all successors of the above entities from any and all claims, lawsuits, liabilities, demands, actions or causes of action that could have been brought by Dr. Philips, including attorneys’ fees and costs, whether at law, equity, oF otherwise, which Dr. Philips ever had, now has, or may bave until the date of the fall execution of this Agreement related to ot arising from his employment at Governor's School, the termination of his employment at the Goverrer's School of North Carolina, the decision not to reshie him at the Goverror's Schoo! or North Carolina, the treatment of him alleged in the Lawsuit, and/or the claims made in the Lawsuit (dhe “Released Claims”), Notwithstanding the foregoing, this is nota setlement of claims under the North Carolina Workers! Compensation Act, nor i it intended to comply with N.C, Gen, Stat, § 97-17. b, Defendants release, acquit, and forever discharges Dr. Phillips ftom all claims, causes of action, demands, rights, damages, costs, sums of money, accounts, covenant, contracts, promises, attorney fes and all iabilities of any kind or nature ‘whatsoever at law, in equity, or otherwise, forall events and occurrences throug the date ofthis Agreement, OLDER WORKERS BENEFIT PROTECTION ACT In compliance with the Age Discrimination in Employment Act (“ADEA”) as amended by the Older Workers Benefit Protection Act of 1990 (*OWBPA”) (collectively, “those ‘Acts, Dr, Philips scknowledges thatthe waiver contained in Paragraph II includes 3vL waiver of his rights under those Acts and releases the persons and entities listed in Paragraph II trom liability under those Acs, Dr. Phillips acknowledges that ths waiver is knowing and voluntary. De Phillips waives his right to have twenty-one (21) calendar days to cansider this Agreement. He acknowledges that he has readand understands all of the terms and conditions of this Agreement. He warrants and represents that he has consulted with an attorney concerning all of the tems and conditions of this Agreement prior to executing this Agreement. Dr. Phillie acknowledges that he has received ‘onideraion under the terms ofthis Agreement in exchange for his waiver of his eights lunderthe ADEA and the OWBPA. Dr. Phillips shall have seven (7) calendar daysto revoke thie Agreement following execution of the same, and this Agreement is effective only if there is no revocation by Dr. Philips during that Seven (7) day perio of time NO ADMISSION OF LIABILITY Each Party understands and agrees that this Agreement is @ compromise setlement of disputed claims and is intended merely to terminate any and all claims within the scope of | the abovercleases and to avoid further proceedings. This Agreement isnot to be construed ‘as an admission of any liability on the part of any Party hereby released and each Party hereby released denies any ibility fr such claims. Furthermore, each Party understands and agrees tha the payment ofthe sums described ‘inthis Agreement isnot intended to be and shall not be considered to be the payment of damages. Instead, Defendants agreement to pay the described sums s consideration forthe Partie” agreement to resolve all claims that were or could have been raised through the _EffectiveDate ofthis Agreement EFFECT OF AGREEMENT ‘A. AllParties agree that this Agreement shall not be subject to any claims of mistake ‘offact, tha it expresses full and complete settlement, regardless ofthe adequacy or inadequacy of the consideration provided, that it is intended to avoid further aid to Dr Phillips in Paragraph IL.B. was subject to any withholding of taxes, other than or in addition to amounts actully withheld by NC DPI, Dr. Pillips agrees to {nderanify and hold NC DPI harmless for any amount of taxes or penalties that may be ound tobe due and owing on the amount received by him. ‘SIGNATURES AND EXECUTION “The Parties agree that this Agreement may be executed in two or more counterparts, cach, ‘of which, as well as eny electronic copy or photocopy, shall be deemed an original and all ‘of which shall constitute one and the same instrument. The Farties also agree that tlectronic or photocopy signatures shall be treated as original signatures. By signing this ‘Agreement, Petitioner and the Agency acknowledge that they have read, understand, and fgtee with all terms and conditions stated in this Agreement, tha they are signing this “Agreement knowingly and voluntarily, and that ehey agree to be legally bound by all the terms and conditions set out herein, The Effective Date ofthis agreement isthe date ofthe last signature by the parties.EXECUTED AND AGREED UPON AS FOLLOWS: For the Plant David Philips, PRD Daie For the Defendants: Dad St ayspeees | 3:54:14 me EOF David Segall Dae Sala Slade (tr enre | s1 51 oe OF RTT Clone <—— (iia eee eee Thomas Winton in vanes Care Toit SSCS*~*~*~«Sa Superintendent ‘North Cxolina Department ‘of Publie InstructionEXECUTED AND AGREED UPON AS FOLLOWS: For the Plaintiff: ‘David Philips, PRD. Dae For the Defendants: David Sip ‘Sew SahCalane ate Theme Winton ——SSOSCSCS*~*~*«éSéa Tomek ales Cie On CatheineTait ——~—S~*~*~*~*~*«é i Superintendent North Carolina Department of Public IstructionExhibit A Elective Seminars Each summer, the Governor's School invites faculty and staff members to present elective seminars on academic and educational topics of their choosing. These seminars are not part of the Area I, II, or III curriculum, They are part of the Governor's School's mission tn foster intellectual curiosity and to explore ideas at the cutting edge of our intellectual and cultural lives. They bring intellectual enorgy and. breadth to the community and allow deepening conversations in less formal settings. Accordingly, the Governot's School strives to offer elective seminars that present wide range of viewpoints. It encourages faculty members to develop seminars that. will challenge students to think eritically and in new ways, While the Governor's School retains authority to select which seminars will be presented and to sot expectations for the manner of presentation it accords faculty members the freedom and responsibility to craft academic and intellectual experiences that reflect their unique viewpoints and expertise.