SETTLEMENT AGREEMENT AND
RELEASE OF EMPLOYMENT CLAIMS

                        This Settlement Agreement and Release of Employment Claims is entered into and effective the day indicated below, by and between AMERON HAWAII (“AMERON” or the “EMPLOYER”) (including its employees, agents and representatives), CEMENT, QUARRY WORKERS, READY MIX AND DUMP TRUCK DRIVERS, LOCAL 681 AFFILIATED WITH THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS (the “UNION”) and DANIEL KELLY (hereinafter “KELLY” or the “GRIEVANT”).   The parties agree as follows:

                        WHEREAS, on or about October 25, 2001, the EMPLOYER discharged the GRIEVANT, and

                        WHEREAS, on or about October 31, 2001, the UNION filed a written grievance challenging the GRIEVANT’S discharge under the applicable collective bargaining agreement (“CBA”); and

                        WHEREAS AMERON has denied any violation of the CBA and has admitted to no liability whatsoever arising out of the GRIEVANT’S  discharge; and

                        WHEREAS, since the filing of the grievance the parties hereto have concluded that each is desirous of resolving the grievance and disposing of all claims on mutually agreeable terms,

                        NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1.            Within two days from the Arbitrator’s approval of this Agreement, AMERON will pay KELLY the amount of thirty thousand dollars ($30,000.00) in consideration for this Settlement Agreement and Release of Employment Claims.  Said payment will be by check payable to KELLY and will be available for pick up by the GRIEVANT at the Sand Island offices of AMERON.  The GRIEVANT acknowledges that the Company is obligated to deduct from the $30,000.00 payable to him under this Agreement, the balance due to a creditor under an outstanding garnishment order previously issued by the Circuit Court.  The GRIEVANT will confirm the balance due on the garnishment (estimated at $5,377.00).

2.            The UNION and KELLY withdraw with prejudice the grievance filed over KELLY’S termination from employment.  KELLY’S termination remains in effect.

3.            AMERON agrees that it will not contest any effort by KELLY toobtain whatever unemployment benefits or temporary disability benefits he may be entitled to by law.  Such non-contest will not be used in any way against AMERON in any proceeding whatsoever.

4.         KELLY understands and agrees that he is not interested in any future employment with AMERON or any of its related companies; KELLY agrees he will not be eligible for employment or re-employment with AMERON or any of its related companies; and KELLY fully waives and released any right that he may have to reinstatement or re-employment with AMERON or any of its related company(ies).

5.         In consideration for the benefits provided for above, KELLY agrees that he will not file, institute, or participate in or authorize any legal action(s), lawsuit(s), complaint(s), or charge(s) against AMERON (to include any current or past employees, agents, owners, parent companies, related entities and/or affiliates), from any and all liabilities for any and all claims, actions, grievance, and damages (including attorney’s’ fees) (hereinafter “claims”), KELLY further agrees that he shall forever release and discharge  the AMERON (to include any current or past employees, agents, owners, parent companies, related entities and/or affiliates) from any liability arising out of said claim(s).  It is understood by the parties that any claims so released do  not and shall not include claims which cannot be waived by law or without the appropriate agency approval (i.e. workers’ compensation claims, unemployment claims, ERISA claims, etc.).

6.            The parties agree that in settling this case and in entering into this Agreement, AMERON is not admitting to any liability or wrongdoing whatsoever, but is entering into this agreement in order to compromise and settle the grievance and to avoid the costs and expenses of further legal proceedings in this matter.

7.            KELLY shall cooperate in the execution and filing of any documents as may be necessary under this Agreement.

8.            KELLY, by his signature below, confirms that this Agreement is voluntary and that he has received full and fair representation from the UNION and is completely satisfied with the terms of this Agreement.

9.            The parties agree that except as provided herein, there have been no promises, representations, or statement made by any person or party to induce the other party to enter into this Agreement, except as specifically provided for herein, and that all parties have entered into this Agreement voluntarily and willingly.

10.         Should any provision of this Agreement be declared unenforceable, the remaining provisions of said Agreement shall remain binding and enforceable.

11.         Any and all claims by any party for claims which are covered under this Agreement, and any and all disputes regarding the formation, application, interpretation, breach, or claims of non-compliance with the terms of this Agreement shall be referred exclusively to an arbitrator chosen under this selection procedure of the then-prevailing collective bargaining agreement for final and binding resolution.

12.         The parties understand and agree that this Agreement shall be approved by the Arbitrator selected by the parties to hear this Agreement, and the same shall be issued by the Arbitrator as his award under the provisions of the collective bargaining agreement and the provisions of H.R.S. Chapter 658 and the Federal Arbitration Act.

                        DATED:  Honolulu, Hawaii,                                               .

                                                                                                                                               
                                                                        DANIEL KELLY

                                                                       

CEMENT, QUARRY WORKERS, READY

                                                                        MIX AND DUMP TRUCK DRIVERS,
                                                                        LOCAL 681 AFFILIATED WITH THE
                                                                        INTERNATIONAL BROTHERHOOD OF
                                                                        TEAMSTERS
                                                                        By
                                                                                                                                                           
                                                                                    Its
                                                                       

                                                                        AMERON HAWAII
                                                                        By
                                                                                                                                                           
                                                                                    Its

APPROVED AND SO ORDERED:
                                                                       
MICHAEL F. NAUYOKAS, Arbitrator
                                                                       

DATE

 

Subscribed and sworn to before me this
             day of                                    , 2001.
                                                                       
Notary Public, State of Hawaii
My Commission expires: