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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA LOUIS H

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					UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA LOUIS H. ERICHS, VICKI FLAXMAN, FRED FOWLES, JENEE GESCHWIND AND ARMIDA MONTELLANO, on behalf of themselves and all others similarly situated, Plaintiffs, v. VENATOR GROUP, INC., formerly doing business as Woolworth Corporation, on Behalf of Itself and All Its Wholly Owned Subsidiaries Engaged in the Retail Shoe Business, Defendant. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. C-98-2981 SBA NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF CLASS ACTION AND FINAL APPROVAL HEARING

DEADLINE FOR FILING CLAIMS AND REQUESTING EXCLUSION: FEBRUARY 28, 2003 FINAL APPROVAL HEARING: APRIL 16, 2003

TO: ALL CURRENT AND FORMER STORE MANAGERS OF FOOT LOCKER, LADY/KIDS FOOT LOCKER, FOOT QUARTERS, COLORADO, AND KINNEY SHOE RETAIL STORES OPERATED BY THE WHOLLY OWNED SUBSIDIARIES OF FOOT LOCKER, INC. fka VENATOR GROUP, INC., (“Foot Locker”), WHO WERE EMPLOYED AS A STORE MANAGER IN CALIFORNIA AND PAID UNDER THE CALIFORNIA MANAGERS’ COMPENSATION PLAN AT ANY TIME FROM APRIL 1, 1995 TO THE PRESENT (“The Settlement Class Members”): PLEASE READ THIS NOTICE CAREFULLY. THIS NOTICE RELATES TO THE PENDENCY AND PROPOSED SETTLEMENT OF THIS CLASS LITIGATION AND, IF YOU ARE A CLASS MEMBER, CONTAINS IMPORTANT INFORMATION AS TO YOUR RIGHTS TO OBTAIN A SETTLEMENT AMOUNT AS FURTHER DESCRIBED BELOW. THERE ARE DEADLINES YOU MUST MEET IN THIS NOTICE. 1. The Lawsuit and Settlement. A lawsuit was filed in 1998 in United States District Court for the Northern District of California (the “Court”), entitled Erichs, et al. v. Venator Group, Inc., Case No. C-98-2981 (the “Foot Locker Litigation”). This notice (the “Notice”) is not intended to be, and should not be construed as, an expression of any opinion by the Court with respect to the truth of the allegations in the Foot Locker Litigation or the merits of the claims or defenses asserted. This Notice is merely to advise you of the pendency and proposed settlement of the Foot Locker Litigation, and of your rights in connection with the settlement. YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure, and by Order of the Court, that a settlement of the Foot Locker Litigation for store managers in California paid under the California Managers’ Compensation Plan at any time from April 1, 1995 to the present, as set forth in the Stipulation of Settlement (the “Stipulation”) dated as of December 6, 2002, on file with the Court, has been reached by the parties, which settlement is subject to approval by the Court, and which, if approved, will result in: (1) the payment of additional commissions, after certain deductions described below, to eligible Settlement Class Members who file timely and valid Proof of Claim and Release forms; and (2) the dismissal of the Foot Locker Litigation; and (3) the release of all claims by the Settlement Class Members against Foot Locker. 2. The Hearing. A hearing (the “Final Approval Hearing”) will be held on April 16, 2003, before the Honorable Saundra B. Armstrong, United States District Judge, United States District Courthouse, 1301 Clay Street, Suite 400, Oakland, CA, Courtroom 3, 3rd Floor, to consider: (1) whether the proposed settlement should be approved by the Court as fair, reasonable, and adequate; (2) whether the Foot Locker Litigation should be dismissed with prejudice as set forth in the Stipulation; (3) whether the proposed Stipulation setting forth an Amended Commission Plan complies with applicable federal and state law, including, but not limited to, the California Labor Code, California Industrial Wage Orders Nos. 7-80, 7-98 and 7-2001, and the federal Fair Labor Standards Act, and constitutes an appropriate basis for calculating the proper measure of restitution with regard to claims under California Business and Professions Code § 17200 et seq.; (4) the reasonableness of the application of Class Counsel for the payment of attorneys’ fees and reimbursement of costs and expenses; and (5) whether the releases by Settlement Class Members should be approved as fair, reasonable, and adequate.
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3. The Settlement. Pursuant to the settlement described herein, Foot Locker has agreed to pay adjusted commissions to Settlement Class Members. The full settlement agreement is set forth in the Stipulation of Settlement on file with the Court. The amount of adjusted commissions payable to any individual Settlement Class Member will vary, depending on the volume of merchandise sold in the stores managed by any store manager. A Settlement Class Member’s distribution (the “Adjusted Commission Differential”) will be calculated by applying the commission schedule set forth in Exhibit 1 to the Stipulation of Settlement to each week’s sales during the applicable timeframe, and subtracting amounts already paid to store managers. The difference, less applicable withholdings and deductions, shall be paid to each eligible Settlement Class Member in a lump sum. The Representative California Plaintiffs and certain participating witnesses will receive an additional amount as compensation, less applicable withholdings and deductions. 4. Statement of Attorneys’ Fees and Costs Sought. Class Counsel intends to apply for an award of attorneys’ fees, in addition to the amounts paid to the Settlement Class, as follows: (1) Thierman Law Firm: $408,849.96 for fees and $38,381.93 as costs and expenses; (2) Hoffman & Lazear: $30,738.05 for fees and $218.47 as costs and expenses; (3) Law Offices of James Thompson: $4,400.00 for fees and no costs. Defendant does not oppose Class Counsel’s application for attorneys’ fees, costs and expenses in these amounts. 5. Class Counsel: Any questions regarding the settlement should be directed to the following counsel for the Representative California Plaintiffs and the Settlement Class: Mark R. Thierman, State Bar No. 72913 Thierman Law Firm 7287 Lakeside Drive Reno, Nevada 89511 Telephone: (775) 284-1500 Facsimile: (775) 703-5027 6. Release of Claims. Under the proposed settlement, all Settlement Class Members will be bound by any judgment entered by the Court. All claims of the class against Foot Locker relating to payment of compensation from April 1, 1995 through the present, including, but not limited to, claims for overtime and calculation of commissions under the California Managers’ Compensation Plan, and for restitution and/or injunctive relief, will be released as and to the extent provided in the Stipulation, and Settlement Class Members will be forever barred from seeking further relief on any of these released claims. Upon final Court approval of the Stipulation, a judgment shall be entered dismissing with prejudice, and fully and finally settling, the Foot Locker Litigation as to all Settlement Class Members, except those who properly and timely request exclusion from the Foot Locker Litigation in the manner described in the following section. 7. Requests For Exclusion. If you are an individual who was employed by Kinney Shoe, Foot Locker, Lady/Kids Foot Locker, Foot Quarters and/or Colorado, and were paid under the California Managers’ Compensation Plan at any time from April 1, 1995 and the present, you will automatically be considered a member of the class unless you request to be excluded. HOWEVER, YOU MUST SEND A PROOF OF CLAIM AND RELEASE IN THE FORM ATTACHED TO THIS NOTICE TO RECEIVE ANY PAYMENT. THE PROOF OF CLAIM AND RELEASE MUST BE POSTMARKED NO LATER THAN FEBRUARY 28, 2003 TO BE VALID. This Court will exclude you from the class if your written request for exclusion is mailed to the Clerk of the United States District Court, Northern District of California, Courtroom 3, 1301 Clay Street, Suite 400, Oakland, California 94612-5212, and is postmarked on or before February 28, 2003. The request must state: “I DO NOT WANT TO BE PART OF THE PLAINTIFF CLASS IN ERICHS V. VENATOR GROUP, INC. (FOOT LOCKER, INC.), CASE NO. C98-2981 (SBA).” The request must be signed and dated, with your name and address printed below your signature. At the same time, you must also send a copy of this request for exclusion to Class Counsel and to counsel for Foot Locker, identified in paragraph 8 below.
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IF YOU TIMELY REQUEST EXCLUSION, YOU WILL NOT BE ENTITLED TO SHARE IN ANY BENEFITS THAT THE CLASS MAY OBTAIN. IF YOU DO NOT TIMELY REQUEST EXCLUSION, YOU WILL NOT BE ABLE TO FILE A SEPARATE CLAIM AGAINST FOOT LOCKER BASED ON THE EVENTS AND CIRCUMSTANCES ALLEGED IN PLAINTIFFS’ COMPLAINT. If you do not request exclusion, you may, if you desire and at your own expense, enter an appearance through an attorney of your choosing. If you do not request exclusion and you do not enter an appearance through your attorney, your interests will be represented by the Representative California Plaintiffs through Class Counsel, at no out-of-pocket cost to you. 8. The Court Hearing. Any Settlement Class Member who has not requested exclusion from the Foot Locker Litigation may submit a written statement by no later than February 28, 2003, and appear at the Final Approval Hearing scheduled for April 16, 2003, in person, or through an attorney retained at the class member’s own expense, setting forth such Settlement Class Member’s intent to appear at the Final Approval Hearing, and/or to object the proposed settlement, to support it, or to ask questions about it. If you wish to appear at the hearing to make a statement to the Court you MUST notify the Court, Class Counsel, and counsel for Foot Locker in writing of your intention to do so. DO NOT CALL THE COURT. Your written statement must include each objection to the proposed settlement, if any, and the reason(s) for such objection, as well as copies of any documents supporting your position. Your written objections to the proposed settlement and notice of your intent to appear at the Final Approval Hearing must be filed with the Clerk of the Court by no later than February 28, 2003, at the following address: Clerk of the United States District Court, Northern District of California, 1301 Clay Street, Suite 400, Oakland, California 94612-5212. All documents you file with the Court must identify the case name and number of the Foot Locker Litigation, both of which appear in Paragraph 1 of this Notice. Copies of any papers that you file with the Court must also be mailed or delivered at the same time to the following attorneys at the addressees shown: Class Counsel: Mark R. Thierman, State Bar No. 72913 Thierman Law Firm 7287 Lakeside Drive Reno, Nevada 89511 Telephone: (775) 284-1500 Facsimile: (775) 703-5027 Attorneys for Foot Locker, Inc.: Tracy Thompson, State Bar No.: 88173 Brobeck, Phleger & Harrison LLP One Market, Spear Street Tower San Francisco, California 94105 Telephone: (415) 442-0900 Facsimile: (415) 442-1010

You must also file a Proof of Service with the Court stating that you mailed or delivered copies of these papers to the attorneys for the parties on or before February 28, 2003. 9. Payment. If the Court approves the Stipulation on April 16, 2003, and you have timely submitted a valid Proof of Claim and Release Form, any settlement payment for which you are eligible will be mailed to you at the address on the Proof of Claim and Release form approximately fifteen (15) days after the entry of final judgment in the Foot Locker Litigation and dismissal of all claims, and the Court’s judgment approving the Stipulation and awarding attorneys’ fees and costs, unless an appeal is taken. If the Stipulation is not approved, the Foot Locker Litigation will proceed. 10. Examination Of Papers. This Notice does not fully describe the Foot Locker Litigation. You may inspect the Court file at the Office of the Court Clerk, United States District Court, Northern District of California, 1301 Clay Street, Suite 400, Oakland, California 94612-5212, between the hours of 9:00 a.m. to 4:00 p.m., Monday through Friday. IT IS SO ORDERED. DATED: December ___, 2002 The Honorable Saundra B. Armstrong Judge of the U.S. District Court
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FOOT LOCKER SETTLEMENT PROOF OF CLAIM AND RELEASE GENERAL INSTRUCTIONS This Proof of Claim and Release must be submitted by any current or former store manager who wishes to make a claim pursuant to the Foot Locker Settlement. For further information, see the attached Notice of Pendency and Proposed Settlement of Class Action and Final Approval Hearing, and/or the Stipulation of Settlement on file with the Clerk of the Court, United States District Court for the Northern District of California. Please print clearly using dark ink. Complete all sections of the Proof of Claim and Release. Failure to provide information may result in your claim being delayed or discarded. You will need to certify under penalty of perjury that the information listed below is true to the best of your knowledge. Mailing Instructions. Mail this completed Proof of Claim and Release to the Foot Locker Class Action Settlement Administrator, postmarked on or before February 28, 2003, at the following address: Foot Locker Class Action Settlement Administrator c/o Rust Consulting, Inc. P.O. Box 1656 Faribault, MN 55021-1656 Questions. Any questions concerning this form should be directed to the Foot Locker Class Action Administrator at 1-866-329-4703. PROOF OF CLAIM I was employed by the ______________________ division of Foot Locker, Inc. (formerly known as Venator Group, Inc.) and was paid under the California Managers’ Compensation Plan from approximately _______________________________________ to _______________________________________________, at the stores located in (list location of each store where you worked)___________________________________________________________________________, California.

✁

My current address is: ____________________________________________________________________ Street Address

____________________________________
City

___ ___
State

___ ___ ___ ___ ___ - ___ ___ ___ ____
Zip Code

My Social Security Number is: ___ ___ ___ - ___ ___ - ___ ___ ___ ___ RELEASE OF CLAIMS - - READ CAREFULLY By completing this Proof of Claim, I hereby waive and release any and all known and unknown claims against Foot Locker, Inc., and/or its current and former subsidiaries, affiliates, divisions, predecessors, insurers, agents, employees, successors, assigns, officers, directors, and shareholders, as follows: Any and all claims for the period April 1, 1995 through the date on which I sign this release, for payment of unpaid wages, salary, commissions, bonuses, overtime compensation, related penalties, interest, costs, attorneys’ fees, restitution, injunctive relief, and any other remedies owed or available for alleged unpaid compensation for the period April 1, 1995 through the date of this release, as a result of my employment with Foot Locker, Inc., or any of its subsidiaries or operating divisions, under the California Labor Code, California Business and Professions Code § 17200 et seq., the California Wage Orders, the Fair Labor Standards Act, or any other federal, state or local law. I declare under penalty of perjury under the laws of the State of California and the United States that the information provided in this Proof of Claim form is true and correct to the best of my knowledge. Dated: ____________________, 2003

_______________________________________
Signature

_______________________________________
Print Name

Foot Locker Class Action Settlement Administrator c/o Rust Consulting, Inc. PO Box 1656 Faribault MN 55021-1656

FIRST-CLASS MAIL U.S. POSTAGE PA I D Rust Consulting, Inc.

<<NAME>> <<ADDRESS1>> <<ADDRESS2>> <<CITY STATE ZIP CODE>>


				
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