UNITED STATES OF AMERICA

         vs.

MICHAEL KNISLEY

Michael Knisley

                                     SETTLEMENT AGREEMENT

It appearing that you are reported to have committed offenses against the Communications Workers of America, Local Union 14766 during the period of September 1998 through January 2000, in violation of Title 29, United States Code, Sections 439(c) and 502(c) in that you did embezzle union funds by entering false purposes on checks. Upon your accepting responsibility for these acts, and it further appearing, after an investigation of the offenses, and your background, that both your own interest, and the interest of justice, will be served by entering into this settlement agreement, therefore,

Prosecution in this District for these offenses shall be deferred for a period of 18 months from the date of the signing of this settlement agreement, provided you abide by the following conditions and the requirements set out below:

Should you violate the conditions of this agreement, the United States Attorney may revoke or modify any of the conditions or change the period of the agreement which shall in no case exceed 18 months. The United States Attorney may release you from agreement at any time. The United States Attorney may time within the period of this agreement initiate prosecution for this offense should you violate its conditions and will furnish you with notice specifying the conditions of your program which you have violated.

If, upon completion of the period of this agreement, you have complied with all the rules, regulations and conditions above mentioned, no prosecution for the offenses set out on page 1 of this agreement will be instituted in this District, and any indictment or information will be discharged.

Neither this agreement nor any other document filed with the United States Attorney as a result of this agreement will be used against you, except for impeachment purposes, in connection with any prosecution for the above described offense.

                              CONDITIONS OF FOR SETTLEMENT

1.    You shall not violate any law (federal, state and local).

2.    You shall attend school or work regularly at a lawful occupation.

When out of work or unable to attend school, you shall notify the United States Attorney’s Office.

3.    You shall continue to live in this judicial district. If you intend to move out of the district you shall inform the United States Attorney’s Office.

4.    You shall keep the United States Attorney’s Office informed of your whereabouts.

                              Special Conditions

5.    You shall pay restitution in the amount of $4,275.20 to the United States Attorney’s Office. You shall make monthly payments of $237.51 for 18 months. The checks shall be made payable to the Communications Workers of America and mailed to:

U.S. Attorney Office
PO Box 1494
Spokane, WA 99210-1494

6.    You shall be prohibited from holding any union office, or being employed by any union, for a period of thirteen years from the date of this agreement as set forth in 29 United States Code Section 504.

7. You waive your right under 29 United States Code Section 504 to request that the period of this prohibition be reduced.

                                  Court Status

I, MICHAEL KNISLEY, assert and certify that I am aware of the fact that the Sixth Amendment to the Constitution of the United States provides that in all criminal prosecutions the accused shall enjoy the right to a speedy and public trial. I also an aware that Rule 48(b) of the Federal Rules of Criminal Procedure provides that the Court may dismiss an indictment, information, or complaint for unnecessary delay in presenting a charge to the Grand Jury, filing an information or in bringing a defendant to trial. I hereby request that the United States Attorney or the Eastern District of Washington defer any prosecution of me for violation of Title 29, United States Code, Sections 439(c) and 501(c) for a period of 18 months, and to induce him to defer such prosecution I agree and consent that any delay from the date of this Agreement to the date of the initiation of the prosecution, as provided for in the terms expressed herein, shall be deemed to be a necessary delay at my request and I waive any defense to such prosecution on the ground that such delay operated to deny my rights under Rule 48(b) of the Federal Rules of Criminal Procedure and the Sixth Amendment to the Constitution of the United States to a speedy trial or to bar the prosecution by reason of the running of the statute of limitations for a period of 18 months, which is the period of this agreement.

I hereby state that the above has been read by me. I understand the conditions of the settlement agreement and agree that I will comply with them.

/SIGNED/_______                                   7-7-03
MICHAEL KNISLEY                                   DATE

/SIGNED/_______                                   7-17-03
ROLF H. TANGVALD                                   DATE
Assistant United States Attorney

I, Michael Knisley, will mail the first check of $237.51 on Friday, June 11th 2003, then I will mail a check every month on or before the 11th. Thank you very much for this opportunity to settle this.

__/SIGNED/___ 
MICHAEL KNISLEY
7-7-03