SETTLEMENT AGREEMENT

        1.      Parties. The parties in this Settlement Agreement
("Agreement") are the United States of America (the "United
States") and Steve Pavey, owner and operator of Pavey's Grocery
Store (the "Grocery"), 27093 U.S. 52, Rushville, Indiana.

        2.      Nature of Complaint. This matter was initiated by a
complaint filed with the United States against the Grocery. The
complaint was investigated by the U.S. Attorney's Office,
Southern District of Indiana, under the authority granted by the
Americans with Disabilities Act ("ADA"), 42 U.S.C.  12188. The
complaint includes allegations that the Grocery failed to remove
architectural barriers where such removal was readily achievable.
The ADA requires owners and operators of existing places of
public accommodation, such as the Grocery, to remove barriers to
access to the extent that it is readily achievable to do so. 42
U.S.C.  12182(b)(2)(A)(iv); 28 C.F.R.  36.304.

        3.      Applicability of the ADA. The ADA applies to the
Grocery as it is a place of public accommodation, as defined in
the ADA, 42 U.S.C.  12181(7)(E), and section 36.104 of the
implementing regulations of the Department of Justice (the
"Department"), 28 C.F.R.  36.104.

        4.      Subject of Agreement. The subject of this Agreement is
the removal of architectural barriers from the Grocery. The
Grocery agrees to complete such barrier removal in a manner that
is consistent with Title III of the ADA, 42 U.S.C.  12181-89,
and the Department's Title III regulations, 28 C.F.R. pt. 36,
including the Standards for Accessible Design, Appendix A ("the
Standards").

        5.      Actions to be Taken. Pavey agrees that he will do the
following:

        (a)     within 90 days of the effective date of this Agreement,
                modify the ramp at the main entrance of the Grocery to
                decrease the ramp's slope and otherwise make it comply
                with the ADA and Section 4.8 of the Standards;

        (b)     within 90 days of the effective date of this Agreement,
                either: (1) decrease the pressure valve on the











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                hydraulic door closer on the door to the main entrance
                of the Grocery such that the door can be opened using
                no more than five pounds of force, or (2) unhook the
                hydraulic door closer to allow the door to open freely;
                and

        (c)     ensure that the foregoing modifications remain in
                effect and that any remodeling undertaken at the
                Grocery fully complies with the ADA, the Department's
                Title III regulations, and the Standards.

        6.      Progress Report/Inspections. Within 120 days of the
effective date of this Agreement, Pavey shall submit a report to
the United States Attorney detailing the actions taken to comply
with this Agreement. In addition, Pavey will permit
representatives from the U.S. Attorney's Office and/or the Civil
Rights Division to inspect the premises of the Grocery to verify
compliance with this Agreement.

        7.      Agreement not to Prosecute. Provided that Pavey fully
complies with all terms of this Agreement, the United States will
cease its investigation and/or prosecution of the complaint
referenced in paragraph 2 of this Agreement; provided, however,
that this shall not limit the United States' ability to enforce
this Agreement. Nor does this Agreement prevent the United
States from investigating and/or prosecuting other ADA complaints
that may be filed, or otherwise relieve Pavey and/or the Grocery
from fully complying with the ADA.

        8.      Enforcement. If the United States believes that this
Agreement or any requirement in this Agreement has been violated,
it may institute a civil action in the Southern District of
Indiana or any other appropriate District Court to enforce the
terms of this Agreement.

        9.      Non-Waiver. Failure by the United States to enforce
any provisions(s) of this Agreement shall not be construed as a
waiver of its right to do so with regard to any other
provision(s) of this Agreement.













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        10.     Public Document. This Agreement is a public document.
Copies of this Agreement shall be made available to any person by
either party.

        11.     Authority to Bind. A signer of this document in a
representative capacity for a partnership, corporation, or other
entity, represents that he or she is authorized to bind such
partnership, corporation or other entity to this Agreement.

        12.     Entire Agreement. This Agreement sets forth the
complete agreement between the parties. In entering into this
Agreement Pavey does not rely on any representation or statement
not set forth herein.

        13.     Effective Date. The effective date of this Agreement
is the date of the last signature below.


For Steve Pavey and                     For the United States:
Pavey's Grocery Store:
                                        JUDITH A. STEWART
                                        United States Attorney
 (Signature)
______________________
Steve Pavey                               (Signature)
                                        _____________________________
Date 5-28-97 (handwritten)              JUDITH A. STEWART
                                        UNITED STATES ATTORNEY



                                         (Signature)
                                   By: _________________________________
                                        Tim A. Baker
                                        Assistant United States Attorney

                                   Date 6/6/97 (handwritten)












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