Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 100 of 119. Exhibit 4

Transcription

1 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 100 of 119 Exhibit 4

2 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 101 of 119 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA VERNON ROSS and DEBRA JOSEY, ) Individually and on behalf of a class of similarly ) situated African American employees, ) ) Plaintiffs, ) Civil No. v. ) ) CLASS ACTION LOCKHEED MARTIN CORP., ) ) Defendant. ) ) NOTICE OF CLASS ACTION, PROPOSED SETTLEMENT AGREEMENT, AND SETTLEMENT HEARING IF YOU ARE AFRICAN AMERICAN AND WERE A SALARIED EMPLOYEE BELOW THE LEVEL OF VICE PRESIDENT EMPLOYED BY LOCKHEED MARTIN CORPORATION AT ANY TIME BETWEEN JANUARY 1, 2013 AND FEBRUARY 29, 2016, AND RECEIVED AT LEAST ONE PERFORMANCE EVALUATION DURING THAT PERIOD WITH A RATING BELOW SIGNIFICANTLY EXCEEDED COMMITMENTS, A PROPOSED CLASS ACTION SETTLEMENT MAY AFFECT YOUR RIGHTS. A federal court has authorized this Notice. This is not a solicitation from a lawyer. Please read this Notice carefully and fully. It describes procedures for claiming money from the Settlement Fund.

3 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 102 of 119 Submit a Claim Form YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT This is the only way to be eligible to receive money from the Settlement Fund. You must submit a claim form by [ ] Receive no money from the Settlement Fund. Give up certain rights. Do Nothing By doing nothing, you will not receive any money from the Settlement Fund, and you will give up any rights to separately pursue the race discrimination claims against Lockheed Martin covered by the Settlement. Receive no money from the Settlement Fund. Keep any rights you might have to pursue race discrimination claims against Lockheed Martin separately. Ask to Be Excluded (Opt Out) If you ask to be excluded, you will not be eligible to receive any money from the Settlement Fund, but you keep any rights you might have to pursue separately race discrimination claims against Lockheed Martin covered by this Settlement. You must submit your request to opt out by [ ]. If you opt out, you may not submit a Claim Form. Object/Comment Go to the Hearing Write to the Court about why you think the settlement is fair or unfair to the class. You must submit your objections or comments by [ ]. Ask to speak in Court about the fairness of the settlement. You must submit your request to speak in Court by [ ].

4 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 103 of 119 WHAT THIS NOTICE CONTAINS Purpose of this Notice... 1 Background: About the Lawsuit... 1 Class Definition You are Part of the Class... 2 Summary of Settlement Terms... 3 Settlement Hearing... 6 How to Proceed: Your Options... 6 How Will My Payment Be Calculated?... 9 Confidentiality The Lawyers Representing You And The Class Getting More Information... 13

5 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 104 of Purpose of this Notice This Notice is intended to inform you about this litigation, the certification of a class (the Class ), the terms of a proposed settlement (the Settlement ), and your rights in connection with a hearing to be held before the Court on, 2017, to consider the fairness, reasonableness, and adequacy of the Settlement. This Notice also describes the steps to be taken by those who wish to be excluded from the Class and, for those who remain Class Members, the steps necessary to seek payment from the Settlement Fund if the Settlement is approved by the Court. 2. Background: About the Lawsuit Two current and former African American employees of Lockheed Martin, who are the Plaintiffs in this lawsuit, retained attorneys called Class Counsel to investigate claims of race discrimination at Lockheed Martin Corporation ( Lockheed Martin ). These Plaintiffs filed charges of discrimination with the Equal Employment Opportunity Commission ( EEOC ), alleging that Lockheed Martin discriminated against them and a class of similarly situated African American salaried employees below the level of Vice President throughout the United States on the basis of their race in several aspects of their employment. Mediator Linda Singer, of the private mediation group JAMS, held close to a dozen in person mediation sessions, as well as numerous telephonic sessions, during which Class Counsel and the Plaintiffs advocated for meaningful monetary relief for the Class, forward-looking changes to Company policies, and independent oversight over the Settlement. The Company strenuously denied liability. Ultimately, with the help of Ms. Singer the parties reached a settlement agreement which was filed simultaneously with the filing of the complaint. On December 23, 2016, the Plaintiffs filed a Complaint in the Court on behalf of themselves as individuals and on behalf of a nationwide class of African-American salaried employees below the Level of Vice President against Lockheed Martin pursuant to two federal laws that prohibit employment discrimination on the basis of race. The Plaintiffs allege that they are African Americans who are or were employed by Lockheed Martin as salaried employees below the level of Vice President for at least one day between January 1, 2013 and February 29, 2016, and received at least one performance evaluation during that period with an overall rating below significantly exceeded commitments. They claim that, as a result of Lockheed Martin s flawed performance appraisal system, they received lower ratings than comparable white employees, and that, as a consequence, they received fewer promotions, less compensation, and were retained at a lower rate than comparable white employees. In addition to the class claims asserted in the Complaint, one Plaintiff asserts a claim for retaliation. Lockheed Martin denies that it discriminated against African American employees or that it otherwise did anything wrong. By entering into the proposed Settlement, Lockheed Martin does not admit any wrongdoing. 1

6 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 105 of 119 The Court has not determined and, if the Settlement is finally approved, will not determine whether Lockheed Martin discriminated against African American employees. No trial has occurred. The Court has made no finding or determination that Lockheed Martin has violated any law or obligation or that, in the event that the Settlement does not become effective, the Plaintiffs or other Class Members could recover. The Court will examine the Settlement Agreement to determine whether it is fair, adequate and reasonable to the Class. The Court will not otherwise examine the merits of the parties claims or defenses. The Settlement resolves all racial employment discrimination claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. 1981, and any state or local anti-discrimination law arising within the defined time period, including claims pertaining to compensation, promotions, and retention. The Settlement also resolves any individual claims of the named plaintiffs. The Court has reviewed the Settlement and has preliminarily approved it as being fair, adequate and reasonable. The Court will carefully consider whether to give the Settlement final approval. 3. Class Definition You are Part of the Class You are a member of the Class affected by the Settlement if you fit within this definition: All African-American salaried employees below the level of Vice President employed by Defendant in the United States for at least one day between January 1, 2013 and February 29, 2016, and who received at least one performance evaluation during that period with an overall rating below significantly exceeded commitments. However, the Class excludes: (1) employees who signed release agreements, (2) union-represented employees, (3) individuals who have asserted claims of race discrimination against Lockheed Martin, which remain pending before any local, state or federal agency or in any state or federal court as of the date of preliminary approval, (4) individuals employed by Sandia Corporation, and (5) individuals who became (or become) employees of Lockheed Martin or one or more of its subsidiaries as a consequence of stock or asset acquisitions consummated on or after January 1, 2012 including, but not limited to, the following transactions: Industrial Defender, Materion Assets, Deposition Sciences, Astrotech AssetsZeta Associates, Sun Catalytix, Systems Made Simple, and Sikorsky. If you received this Notice in a mailing addressed to you, then Lockheed Martin s records show that you are a Class Member. You have legal rights and options that you may exercise before the Court finally approves the Settlement. 2

7 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 106 of 119 Even if you fit within the Class definition, you may exclude yourself from, or opt out of, this lawsuit. If you do so, you will not be eligible to receive any money from the Settlement Fund. You will keep any legal rights that you would otherwise have to sue Lockheed Martin individually. Information about how to opt out is included below. 4. Summary of Settlement Terms What Are the Terms of the Settlement? The Settlement requires Lockheed Martin to establish a $22.8 million Settlement Fund and to engage in certain programmatic relief for four years. The Settlement Fund Under the Settlement, Lockheed Martin will establish a $22.8 million Settlement Fund. A portion of the Settlement Fund will be used to reimburse costs and expenses of the litigation as well as pay Class Counsel s fees as awarded by the Court. The remainder of the Settlement Fund will be distributed to the Plaintiffs and Class Members to compensate them for the asserted claims. If claimants fail to cash checks paid to them from the Settlement Fund within six (6) months of receipt, then the amounts that would have been paid to these claimants will be distributed to 501(c)(3) organizations advancing career opportunities for African Americans, including opportunities in the STEM disciplines, as selected by Class Counsel after consultation with Lockheed Martin s Senior Vice President of Human Resources. What Changes Has Lockheed Martin Agreed to Under the Settlement? As described more fully in the Settlement Agreement, Lockheed Martin has agreed to enhance various policies and practices applicable to African American salaried employees. These changes are intended to improve the performance appraisal system. Lockheed Martin has also agreed to take other actions to ensure a diverse, inclusive and equal employment opportunity workplace at Lockheed Martin. Under the Settlement, the Company has agreed to the following, among other changes, with regard to its performance appraisal system and other policies and practices: A. Establish a Workforce Initiatives Council ( Council ) to: 1. Oversee implementation of the changes that Lockheed Martin has agreed to take as a result of the Settlement Agreement, including making recommendations to modify the performance appraisal process, establish an exit interview process, and track participation in leadership development programs; 2. Review reports that reflect Lockheed Martin s progress in ensuring fair and non-discriminatory processes related to performance management, as well as 3

8 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 107 of 119 making recommendations regarding the need for follow-up action based on the data in the reports; 3. Monitor statistical analyses required under the Settlement Agreement; and 4. Assist in reporting to and meeting with Class Counsel in Class Counsel s role as monitor of the Settlement Agreement. B. Board of Directors: Under the Settlement, twice a year, the Chair of the Council and/or the Vice President of Global Diversity and Inclusion shall provide a report to the Board of Directors and/or the appropriate Committee of the Board of Directors that addresses the efforts of the Council to carry out this Settlement Agreement as well as employee trends relevant to the Settlement Agreement. C. Implement changes to its performance appraisal process, including but not limited to: 1. Discontinuing the use of calibration sessions and forced ranking systems; 2. Eliminating the composite score, which represents a weighted average of an employee s ratings for commitments and behaviors; 3. Considering revisions to the performance management tool; 4. Investigating and, if appropriate, proposing modifications to the performance ratings appeal process to ensure that employees have the opportunity to obtain meaningful review of their performance evaluations; and 5. Reviewing performance evaluation data to analyze the data for disparities in the performance ratings received by African American salaried employees, and, before year-end ratings are provided to employees, discuss solutions to any statistically significant disparities. D. Every other year, the company will undertake a salary analysis relating to the compensation paid to African American employees and make adjustments to their compensation, as reasonable and appropriate. E. Implement a process to ensure that a diverse slate of viable candidates is being considered for open salaried exempt positions at grade 7 and below prior to filling the positions. The Council shall receive and review data on diverse slate process and suggest means for improving and enhancing the process. F. At the request of the Council, each Business Area shall develop a growth promotion plan that addresses the timing of growth promotion decisions and includes a proposal for analyzing the distribution of growth promotions for which African American salaried employees are eligible. 4

9 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 108 of 119 G. The Council shall investigate options for conducting exit interviews and surveys of employees who voluntarily resign their employment with the Company and recommend a process for conducting such interviews and tracking the feedback received. H. The Council will consider and recommend mechanisms to link performance in the area of diversity and inclusion to executive compensation. I. Provide training in areas impacting the Company s diversity and inclusion, including continued Effective Leadership of Inclusive Teams (ELOIT) learning opportunities; instruction for leaders and employees on conducting performance evaluations and providing performance feedback as well as the appeal process; and training for leaders responsible for employee evaluations and/or selections. J. The Council shall investigate options to monitor the demographics of those who participate in Leadership Development Programs and track participants career progression following participation in such programs. K. Develop, or continue where a system is currently in place, a system of tracking personnel data to ensure that information for African American salaried employees can be provided to the Council on a semi-annual basis. Based on the following data, the Council shall pay particular attention to any statistically significant disparities affecting salaried African American employees and shall make recommendations regarding any need for further investigation, follow-up action, or changes to existing policies and practices affecting: 1. Performance rating distributions; 2. Growth promotions; 3. Participation in training programs; and 4. Attrition information. L. Class Counsel Role In Implementation of Settlement Terms: The Settlement also provides for an active role for the law firm of co-lead Class Counsel, Mehri & Skalet, to ensure Lockheed Martin s fulfillment of the terms of the agreement. Under the Settlement, Lockheed Martin will provide reports to Mehri & Skalet on Lockheed Martin s progress in implementing the actions described above, as well as meet with Mehri & Skalet three times during the first year of the Settlement and on a semi-annual basis thereafter. Lockheed will also provide to Mehri & Skalet data reports on performance rating distributions, growth promotions, attrition information, salary analyses, and participation in training programs of African American salaried employees in comparison to similarly situated employees. 5

10 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 109 of Settlement Hearing The Court will decide whether or not to give final approval to this Settlement after a Settlement Hearing to be held before [ ] at the United States District Court of the District of Columbia, Courtroom, U.S. Courthouse, 333 Constitution Avenue, N.W., Washington, DC At this hearing, the Court will determine whether the proposed Settlement is fair, reasonable, and adequate and whether it should be approved. The Court will also consider whether the motion of the Plaintiffs attorneys, or Class Counsel, for an award of attorneys fees and expenses should be approved, and whether, in accordance with the Settlement, an order and judgment should be entered concluding the litigation. Do I Have To Come To The Settlement Hearing? No. You are not required to appear at the hearing. Class Counsel will appear at the hearing on behalf of all Class Members at no cost to you. But if you would like to comment on or object to the Settlement, you may be heard at the Settlement Hearing, either by yourself or, at your own expense, through an attorney of your choice. Information about how to comment on or object to the Settlement is included below. If the Court gives final approval to this Settlement, the Court s judgment will be final and bind all Class Members who have not opted out. 6. How to Proceed: Your Options You have four main options. You must decide whether you want to: (A) submit a claim form in order to receive money from the Settlement Fund; (B) do nothing; (C) opt out and exclude yourself from a payment from the Settlement Fund; or (D) object to or comment on the Settlement. Option A: Submit a Claim Form for Payment from the Settlement Fund To be eligible to receive money from the Settlement Fund, you must fill out the Claim Form attached to this Notice and return it to the Claims Administrator by no later than [ ]. The Claim Form must be ed to lockheedsettlement@gardencitygroup.com or postmarked and mailed to the address on the Claim Form by this court-ordered deadline. If the Settlement is approved, you are a Class Member, and you file a timely Claim Form, you will be eligible to obtain money from this Settlement. The Data Report accompanying the Claim Form contains information derived from Lockheed Martin s HR database. If you believe that any portion of the Data Report is incorrect, you may challenge the information by following the instructions on the Claim Form. The Claim Form asks for additional information about your employment with Lockheed Martin. The share of money that you receive will be determined by the Claims Administrator based on the information in the Data Report and the additional answers, if any, that you provide on the Claim Form. If you are a Class Member and do not opt out of the Settlement, you will release any racial employment discrimination claims you have or could have brought against Lockheed Martin or any Released Party (as defined in the Settlement Agreement) arising out of your employment, or 6

11 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 110 of 119 termination of employment, through the latter of the date that the Court grants preliminary approval to the Settlement Agreement or the date you sign a Claim Form. The back of any check that you receive will reaffirm your release. If you have already signed a document that releases claims against Lockheed Martin, you may have lost your right to recover any money under the Settlement for the claims you released. If you are unsure if you previously signed a release, you may still submit a Claim Form in this case and the Claims Administrator will determine your eligibility to receive an award. For the two Plaintiffs who brought this lawsuit, the Named Plaintiff Release will terminate any and all claims they have or could have brought against Lockheed Martin or any Released Party, not just racial employment discrimination claims. The Named Plaintiffs will be eligible for an enhanced monetary award due to their release of additional claims and contribution to the initiation and settlement of the litigation. Option B: Do Nothing and Give Up Your Rights If you take no action, you will remain a part of the Class. If you fail to submit a Claim Form by [ ] and you also fail to submit a request to opt out of the Settlement, all race discrimination claims that you may have against Lockheed Martin or any Released Party up through the date that the Court grants preliminary approval to the Settlement, arising out of your employment, or termination of employment, with Lockheed Martin, will be barred by this Settlement. Option C: Opt Out: How Do I Exclude Myself from the Settlement? You may request to opt out, or be excluded, from this case. If you opt out, you will not be eligible for any payment as part of this Settlement. If you wish to pursue your own separate lawsuit regarding your individual race discrimination claims related to your employment or termination, you must opt out. Any Class Member who wishes to opt out of the Settlement Class must mail a written, signed statement that she or he is opting out of the Settlement Class to the following address: Claims Administrator Lockheed Settlement P.O. Box Seattle, WA To be effective as a request for exclusion, the letter must be postmarked on or before [ ], and must contain each of the following: (a) your name, current address, address and telephone number; (b) the name of this case, Ross et al v. Lockheed Martin Corporation; (c) a statement that you wish to be excluded from the Class, including the following language, which must be contained in your request: 7

12 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 111 of 119 I understand that, by this request to be excluded from the monetary settlement in this case, I am foregoing all monetary benefits from this Settlement and I will receive no money from the Lockheed Martin Race Discrimination Settlement Fund. I understand that I may bring a separate legal action seeking damages, but may receive nothing or less than what I would have received if I had filed a claim form under the class monetary settlement procedures in this case. I also understand that I may not seek exclusion from the class for injunctive relief and that I am bound by the injunctive provisions of the settlement agreement. (d) your signature or the signature of the lawyer representing you (if any). In addition, you have the option of letting the parties know why you are opting out. You may include one of the following statements in your request for exclusion: 1. I do not intend to file a separate lawsuit or claim against Lockheed Martin for race discrimination. OR 2. I intend to file a separate lawsuit or claim against Lockheed Martin for race discrimination. Class Members who submit timely and valid requests for exclusion will have no right to object to the Settlement in Court and will no longer be represented by Class Counsel. If you submit the necessary information to opt out, you may change your mind and rescind your opt-out request. To be effective, such a rescission must be in writing, signed, and postmarked on or before [ ] to any one of the following: Cyrus Mehri, Esq. Mehri & Skalet, PLLC 1250 Connecticut Avenue, NW, Suite 300 Washington, DC Claims Administrator Lockheed Settlement P.O. Box Seattle, WA OR Grace Speights, Esq. Morgan, Lewis & Bockius, LLP 1111 Pennsylvania Avenue NW Washington, DC Option D: Comment on or Object to the Settlement and/or Speak at the Hearing 8

13 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 112 of 119 The Court must assess the overall fairness and reasonableness of the Settlement to the Class. Class Members who have not opted out of the monetary relief portion of the Settlement may object to or otherwise comment on the Settlement. To have your comment on the Settlement considered by the Court, you must submit a detailed description of the objection/comment in writing. This statement must be signed, and must include the name and number of this case (Ross et al v. Lockheed Martin Corporation, No. [ ] (D.D.C.)). This statement must be filed with the Court and copies must be received by Class Counsel and Defendant s Counsel on or before [ ] at: Cyrus Mehri, Esq. RE: Ross et al v. Lockheed Martin Corporation, No. [ ] Mehri & Skalet, PLLC 1250 Connecticut Avenue, NW, Suite 300 Washington, DC AND Grace Speights, Esq. RE: Ross et al v. Lockheed Martin Corporation, No. [ ] Morgan, Lewis & Bockius, LLP 1111 Pennsylvania Ave NW Washington, DC You need not speak at the Settlement Hearing for your written objection or comments to be considered by the Court, but you may speak if you so desire. If you wish to speak at the Settlement Hearing, you must include with your written objection or comments a notice stating your desire to speak or to have an attorney you may retain at your own expense speak on your behalf. If you intend to be represented by an attorney for the purpose of making objections, your attorney must file a Notice of Appearance with the Court and serve copies by mail to Class Counsel and Defendants counsel by [ ]. No Class Member may speak at the Settlement Hearing without first having filed and served his or her objection(s) or comments in writing within the time period described above. 7. How Will My Payment Be Calculated? Each Class Member, including each Plaintiff, who files a timely Claim Form ( Claimants ) will have her or his claim reviewed by a Claims Administrator appointed by the Court. The Claims Administrator will determine monetary awards by allocating points to each Class Member who submits a Claim Form. At this time, it is not possible to predict how much money a particular Claimant will receive. Class Members who submit a Claim Form will be eligible to receive payments based on: (i) the number of weeks worked for Lockheed Martin during the class period; (ii) information regarding their performance ratings; (iii) the extent to which they received salary increases, bonuses, awards, and promotions during the class period; (iv) whether their employment was involuntarily terminated under circumstances in which performance evaluations may have contributed during the class period; (v) the extent of claims they are releasing (e.g. a general release versus a class release); (vi) their contributions to the prosecution of this action, if any. This information will be 9

14 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 113 of 119 derived in part from Lockheed Martin s HR records. Claimants will have an opportunity to challenge the information about performance appraisals, promotions, compensation, and termination derived from Lockheed Martin s records if they believe it is incorrect. This information will be mailed to the Claimants in a Data Report along with the Claim Form. The Claim Form contains instructions on how this information may be challenged if Claimants wish to do so. In addition to the information on the Data Report, the Claims Administrator will take into account the additional information, if any, provided by Claimants via their Claim Forms. Claimants may receive additional points if they provide information on the Claim Form about any alleged race-based discrimination they experienced during their employment. In awarding points regarding alleged race-based discrimination experienced by Claimants, the Claims Administrator will consider detailed descriptions of discrimination during the period between January 1, 2013 and February 29, 2106, in salary, merit increases, bonuses, awards, promotions, and terminations during that time frame. The Claims Administrator will be guided by its prior experience in claims administration and relevant case law regarding race discrimination. Claimants are not required to provide additional evidence of race-based discrimination; if they do not, they will receive a payment based only upon the number of weeks worked and information derived from Lockheed Martin s HR records as reflected on the Data Report. The two Plaintiffs will receive additional points for releasing any and all claims against Lockheed Martin in addition to race discrimination claims, as well as for their contributions to initiating and negotiating the Settlement Agreement. The Claims Administrator will make all determinations regarding the allocation of Claim Form points and the payment to each Claimant based on a formula that will be approved by the Court. Claimants will not have a right to challenge the allocation and distribution determined by the Claims Administrator. The total amount of awards made to the Claimants shall not exceed the net amount of the Settlement Fund after deduction for Class Counsel s attorney s fees and costs and potential costs associated with the administration of the fund. Claim Forms must be submitted subject to the penalty of perjury. The information provided on the Claim Form may be verified for accuracy against the Company s computerized personnel and payroll data and any documents provided by Claimants, and information provided by Class Counsel. The Claim Form may be submitted via or U.S. Mail to the addresses listed on the form. The Claim Form must be ed or postmarked by [ ]. What Happens After I Submit My Claim Form? After all timely Claim Forms are reviewed and the Court approves the distribution formula, the Claims Administrator will resolve any challenges brought by Claimants to the information provided by Lockheed Martin about the Claimant s tenure, compensation, promotion, termination, and performance appraisals, according to the instructions on the Claim Form. The Claims Administrator s resolution of such challenges will be final and not subject to review. 10

15 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 114 of 119 The Claims Administrator will then render a determination of the monetary award, if any, that should be paid to each Claimant from the Settlement Fund. The Claims Administrator s determination will be final and not subject to challenge or review. Within a reasonable time period after the Court gives final approval to the Settlement Agreement, the Claims Administrator will send Claimants and Plaintiffs their award payments. The back of each check will contain a legend stating: I have received and read the Class Notice in Ross, et al. v. Lockheed Martin Corp. By negotiating this check and accepting payment, I agree that I have knowingly and voluntarily waived and released the Released Parties from all Released Claims as defined in the Settlement Agreement and in the Notice. By negotiating your check, you confirm your release of all racial employment discrimination claims you have or could have brought against Lockheed Martin or any Released Party (as defined in the Settlement Agreement) arising out of your employment, or termination of employment, with Lockheed Martin through the latter of the date that the Court grants preliminary approval of the Settlement Agreement or you sign the Claim Form. If you do not negotiate your check within six (6) months of the date of the check, you will be ineligible for, and forever barred from receiving money from the Settlement Agreement, even if you did not opt out. Regardless of whether you negotiate the check, you will have given up your rights to separately pursue racial employment discrimination claims against Lockheed Martin or any Released Party if you have not opted out of the Settlement. Any undistributed funds that remain after eight (8) months from the mailing of the last settlement check shall be distributed to 501(c)(3) organizations advancing career opportunities for African- Americans, including opportunities in the STEM disciplines, as selected by Class Counsel after consultation with Lockheed Martin s Senior Vice President of Human Resources or her designee. Are There Tax Consequences For Any Money I Might Get? Any award you receive from the Settlement Fund will have tax consequences for you. The Claims Administrator will be responsible for withholding, remitting and reporting each Claimant s share of income taxes and payroll taxes, including applicable FICA and Medicare, from the Settlement Fund. Lockheed Martin will be responsible to pay for the employer s share of taxes, including FICA, FUTA, SUTA and Medicare. Class Counsel are not tax advisors and cannot give you advice on any tax matters. Class Counsel urge you to consult your tax advisor for answers to any questions you may have about the tax implications of any potential award. 8. Confidentiality Class Counsel and the Claims Administrator take your confidentiality seriously. The names of the individuals who submit claims in this Settlement will not be disclosed to anyone other than Class Counsel, Lockheed Martin s Counsel, the Claims Administrator, and those employees of Lockheed Martin who have a strict business need to know. If the Court requires the names of the individuals who submit claims in this Settlement, the names will be provided in camera, 11

16 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 115 of 119 meaning that they will not be publicly filed or otherwise publicly available and only the Court will have access to them. The content of the responses on the Claim Form will be kept confidential. It is unlawful for Lockheed Martin to retaliate against you for your participation in this case. 9. The Lawyers Representing You And The Class As a Class Member, you are represented in this litigation by Class Counsel, led by Cyrus Mehri, Michael Lieder, and Joanna Wasik of Mehri & Skalet and Charlie Firth of Engelmeier & Umanah: Mehri & Skalet, PLLC Engelmeier & Umanah, P.A Connecticut Avenue NW, Suite Second Avenue South, Suite 100 Washington, DC Minneapolis, MN Phone: (202) Phone: (612) Facsimile: (202) Facsimile: (612) Unless you elect to exclude yourself from the Settlement, you will continue to be represented by Class Counsel in connection with implementation and monitoring of the Settlement throughout the four-year term of the Settlement at no cost to you. Although it is not necessary, you may, if you wish to do so, retain your own attorney at your own expense. How Will The Lawyers Be Paid? If you are a Class Member and receive a payment from the Settlement Fund, you will not owe any fees or expenses to the lawyers who have represented you as part of the Class. The Court will award Class Counsel reasonable attorneys fees and expenses, and those fees and expenses will be paid from the Settlement Fund only if and after the Settlement has been approved by the Court. Class Counsel will file a motion for an award of attorneys fees and expenses already incurred as well as the fees and expenses that will be incurred during the four-year term of the Settlement. In its motion Class Counsel will request that the Court award them reimbursement of out-ofpocket expenses, plus attorneys fees in the amount of 28% of the proposed $22.8 million payment by Lockheed Martin. The attorneys will receive no fees for the salary analysis that will occur every other year going forward per the terms of the Settlement Agreement. The attorneys have pursued these claims on behalf of Plaintiffs and the Class without receiving any compensation for their services or reimbursement of their out-of-pocket expenses. They have undertaken substantial risks in pursuing this matter. They have done so with the understanding that, if they obtained a recovery for the class, their expenses would be reimbursed and they would receive reasonable fees from the fund recovered. Class Counsel will also request the Court to award payments for their duties after the Settlement is finally approved. Under the Settlement Agreement, Class Counsel has the obligation to review Lockheed Martin s reporting on programmatic modifications and data and metrics; meet with the 12

17 Case 1:16-cv KBJ Document 4-1 Filed 12/23/16 Page 116 of 119 Chair of Lockheed Martin s Workforce Council three times during the first year of the Settlement Agreement and on a semi-annual basis thereafter to evaluate and review Lockheed Martin s progress on the objectives of the Settlement Agreement; give feedback to Lockheed Martin on the information provided to it; and discuss with Lockheed Martin and otherwise take appropriate action if Class Counsel identifies issues of non-compliance with the Settlement Agreement. In order to cover the expenses and work associated with Class Counsel s monitoring of the Settlement Agreement, Class Counsel will also request the Court to award additional payments from the settlement fund of $225,000 plus interest, if any, during each of the four years of the term of the Settlement. 10. Getting More Information If you have further questions or are still not sure whether you are included, you can get free help at LockheedRaceSettlement.com or by calling or writing to Class Counsel in this case, at the following phone number or address: Cyrus Mehri, Esq. Mehri & Skalet, PLLC 1250 Connecticut Avenue, NW, Suite 300 Washington, DC (202) lockheedsettlement@findjustice.com This Notice contains only a summary of the terms of the Settlement, the provisions of the releases and related matters. For further information, the Settlement Agreement (which includes the complete terms of the Settlement), the Claim Form, the Release, and numerous other documents connected with the Settlement are available for review and/or downloading on the web at: LockheedRaceSettlement.com. Other orders that the Court may issue from time to time regarding the administration of the Settlement also will be available on the web at: LockheedRaceSettlement.com. PLEASE DO NOT CALL OR CONTACT THE COURT, THE OFFICE OF THE CLERK OF COURT, OR LOCKHEED MARTIN CORPORATION WITH QUESTIONS REGARDING THIS NOTICE. Dated: [ ] The Honorable United States District Court Judge United States District Court for the District of Columbia 13