Gregg A. Farley (State Bar No. 115593) LAW OFFICES OF

AMENDED CLASS ACTION SETTLEMENT AGREEMENT - 1

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Gregg A. Farley (State Bar No. 115593) LAW OFFICES OF GREGG A. FARLEY 880 Apollo Street, Suite 222 El Segundo, California 90245 Telephone: (310) 445-4024 Facsimile: (310) 445-4109 Attorneys for Plaintiff Mario Diaz, appearing in a representative capacity Rachelle Singer, Esq. (State Bar No. 147738) Attorney at Law 2020 E. Orangethorpe Ave., Suite 210 Fullerton, CA 92831 Telephone: (714) 964-3021 Facsimile: (949) 263-8073 Attorney for Defendant Vista Paint Corporation, a California corporation

SUPERIOR COURT OF CALIFORNIA

FOR THE COUNTY OF RIVERSIDE MARIO DIAZ, an individual, appearing individually and in a representative capacity, Plaintiff, vs. VISTA PAINT CORPORATION, a California corporation; and DOES 1-25, Defendants.

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Case No.: RIC1721348 [Assigned to the Hon. John Vineyard, Dept. 1, for Case Management Hearings; assigned to the Hon. Randall S. Stamen, Dept. 7, for Law and Motion purposes only] AMENDED CLASS ACTION SETTLEMENT AGREEMENT

Filing Date: November 9, 2017 Trial Date: None Set PAGA Notice Date: November 9, 2017


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

AMENDED CLASS ACTION SETTLEMENT AGREEMENT

This Amended Class Action Settlement Agreement (“Settlement”) is entered into as

of the last date signed by the Parties hereto and their counsel and replaces and supersedes

the original Class Action Settlement Agreement previously entered into by the Parties as of

November 6, 2018. The Settlement has been amended by the Parties to comply with the

Court’s initial ruling on December 6, 2018 with respect to the preliminary approval of the

Settlement. The Settlement, as amended, is entered into by and among plaintiff Mario Diaz

(“Plaintiff” or “Class Representative”), on behalf of himself and all other similarly situated

employees, as representative of the class (“Class”), which is stipulated to for purposes of

this Settlement only, by and through his attorneys, the Law Offices of Gregg A. Farley and

the Law Offices of Sahag Majarian II (“Class Counsel”), and defendant Vista Paint

Corporation (hereinafter “Vista Paint” or “Defendant”), by and through its attorneys. The

Class Representative and Defendant are collectively referred to herein as “the Parties.”

RECITALS

A. On November 9, 2017, Plaintiff filed his original Complaint, initiating a

proposed class action pursuant to Civil Procedure Code Section 382 against Defendant in the

Riverside County Superior Court, entitled Mario Diaz v. Vista Paint Corporation, Case No.

RIC1721348 (the “Lawsuit”). On the same date, Plaintiff served upon Defendant and the

Labor and Workforce Development Agency (“LWDA”) a notice of an intention to bring a

non-class representative action against Defendant pursuant to the Labor Code Private

Attorneys General Act, California Labor Code Sections 2698 et seq. (“PAGA”). On January

29, 2018, Plaintiff filed a First Amended Complaint (“FAC”), adding the non-class

representative causes of action arising under the PAGA against Defendant.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

B. The FAC, filed on January 29, 2018, alleges causes of action for (a) failure to

provide meal and rest breaks and pay statutory penalties based thereon, (b) failure to pay

regular, overtime and minimum wages, (c) failure to provide and keep accurate and

complete wage statements, (d) waiting time penalties, including unpaid vacation wages at

termination, (e) unfair business practices, and (f) civil and statutory penalties (including

penalties pursuant to the PAGA).

C. Plaintiff was formerly employed by Defendant as a non-exempt employee.

The operative FAC alleges claims on behalf of a proposed class comprised of all current and

former employees of Defendant who were employed as non-exempt employees at any of

Defendant’s locations anywhere in California, at any time from and including June 30, 2015

until the date of certification.

D. By virtue of a prior class action settlement, the current proposed Settlement

covers the period from June 30, 2015 through and including the Date of Preliminary

Approval (as defined below) of the Settlement.

E. On September 13, 2018, the Parties participated in a full-day mediation with

a private mediator specializing in the settlement of wage and hour class actions and PAGA

actions, Jeffrey Krivis of First Mediation Corporation, in Orange, California. During the

mediation, Defendant produced to Plaintiff and Class Counsel copies of certain of

Defendant’s recent financial statements and other financial records. After taking

Defendant’s financial condition into consideration, the Parties reached an agreement in

principle during the mediation with respect to the essential terms of the proposed settlement.

That agreement is now set forth in complete and final form in this Settlement. At all times,

the Parties’ negotiations were adversarial, non-collusive, and at arm’s length.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

F. The Parties are sufficiently familiar with the facts of the Lawsuit and the

applicable law, so as to warrant settlement at this time. Prior to the mediation, Defendant

provided Class Counsel with selected or sampled timekeeping, employment and payroll

records, policies and information for Defendant’s non-exempt employees in California

covered by the proposed Settlement. Pursuant to California Civil Procedure Code Section

2025.230, Defendant as a corporation also produced at deposition before the mediation its

“person most qualified” to testify regarding various topics noticed by Plaintiff. Class

Counsel has also retained a forensic wage-and-hour consultant to analyze and calculate

Defendant’s potential legal exposure for the claimed violations of the California Labor Code

asserted in this Lawsuit.

G. The Parties are represented by competent counsel and have had the

opportunity to consult with counsel prior to the submission of this Settlement to the Court.

H. Nothing in this Settlement, nor the fact of the Settlement itself, shall be

construed or deemed an admission of liability, culpability, negligence or wrongdoing of any

kind on the part of Defendant with respect to the claims alleged in the Lawsuit.

I. Defendant denies all the claims and contentions alleged by the Class

Representative in the Lawsuit. Nonetheless, Defendant has concluded that further litigation

would be protracted and expensive and would also divert management and employee time.

Defendant has taken into account the uncertainty and risks inherent in litigation, especially

in multi-party cases. Defendant has therefore concluded that it is desirable that the Lawsuit

be fully and finally settled in the manner and upon the terms and conditions set forth in this

Settlement.

J. The Class Representative and Class Counsel believe that the claims asserted

in this Lawsuit have merit. Class Counsel, however, recognizes and acknowledges the


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

significant expense and length of continued proceedings necessary to prosecute the Lawsuit

against Defendant through trial and appeal. Class Counsel is also mindful of the inherent

problems of proof and possible defenses to the claims asserted and to class certification.

After careful consideration and mediation, Class Counsel has concluded that it is desirable

that the Lawsuit be fully and finally settled in the manner and upon the terms and conditions

set forth in this Settlement. Both Class Counsel and the Class Representative believe that

the Settlement confers substantial benefits upon the Class and each of the Class Members.

K. Both Parties agree that the Settlement set forth herein adequately balances the

risk of proceeding with the Lawsuit against any potential recovery for the Class Members,

and therefore the Settlement represents a reasonable, fair, and just compromise of the claims

asserted in the Lawsuit.

L. Pursuant to California Evidence Code sections 1152 and 1154, this

Settlement and any related documents filed or created in connection with it shall be

inadmissible in evidence in any proceeding, except as necessary to approve, interpret or

enforce this Settlement, or as may specifically be permitted in Section 12.8 below.

TERMS OF AGREEMENT

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and

between the Class Representative, for himself and for the Class (as defined hereafter), and

Defendant that, subject to the conditions precedent set forth in Section 2 below, the Lawsuit

and the Released Claims shall be finally and fully compromised, released, resolved,

relinquished, discharged and settled and without any adverse findings or conclusions against

Defendant or anyone else, upon and subject to the terms and conditions of this Settlement, as

follows:


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1. DEFINITIONS

As used in this Settlement, the following terms shall have the meanings specified

below:

1.1 “Alleged Claims” shall mean the claims stated in the FAC and those based on

the facts alleged in the FAC. The Alleged Claims include, but are not limited to the

following claims stated in the FAC: (a) violation of Labor Code Sections 512(a) and

226.7(b), (c) (denial of meal and rest breaks and failure to pay statutory penalties based

thereon), (b) violation of Labor Code Sections 204, 510, 1194, 1194.2, 1197 and 1197.1

(failure to pay regular, overtime and minimum wages), (c) violation of Labor Code Section

226(a) (inaccurate wage statements), (d) violation of Labor Code Sections 201-203, 209 and

227.3 (unpaid wages, including vacation wages, at termination), (e) violation of Business

and Professions Code Sections 17200 et seq., and (f) non-class, representative claims under

PAGA”. The Alleged Claims include all claims to entitlement to damages, restitution,

penalties, interest, attorneys’ fees, costs, declaratory and other equitable relief stated in the

FAC.

1.2 “Settlement Administrator” means CPT Group, Inc., which shall act as an

independent third party settlement administrator.

1.3 “Settlement Administration Costs” shall have the meaning set forth in

Section 9.3 of this Settlement.

1.4 “Class” means the class certified for purposes of Settlement only, following

the entry of an appropriate Order by the Court, consisting of all current and former

employees of Defendant who were employed as non-exempt employees at any of

Defendant's locations anywhere in California at any time during the Class Period.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1.5 “Class Counsel” means Gregg A. Farley of the Law Offices of Gregg A.

Farley and Sahag Majarian, II, of the Law Offices of Sahag Majarian, II.

1.6 “Class Counsel Award” shall have the meaning set forth in Section 9.1 of this

Settlement.

1.7 “Class List” shall have the meaning set forth in Section 5.3 of this Settlement.

1.8 “Class Members” and "Participating Class Member" mean all Putative Class

Members who have not opted out of the Settlement after the Notice Period and who are

therefore in the Class that is certified for purposes of Settlement only, following the entry of

an appropriate Order by the Court.

1.9 “Class Period” means the period from June 30, 2015 up to and including the

Date of Preliminary Approval.

1.10 “Class Representative” means Mario Diaz.

1.11 “Class Settlement Amount” shall have the meaning set forth in Section 4.1 of

this Settlement.

1.12 “Court” means the Superior Court of the State of California for the County of

Riverside.

1.13 “Date of Final Approval” means the date the Court enters an order granting

final approval of the Settlement.

1.14 “Date of Final Judgment” means the date the Court renders and enters the

Judgment in the Lawsuit upon Final Approval of the Settlement.

1.15 “Date of Preliminary Approval” means the date the Court enters an order

granting preliminary approval of the Settlement.

1.16 “Deemed Mailed” shall have the meaning set forth in Section 5.5 of this

Settlement.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1.17 “Defendant” means defendant Vista Paint Corporation.

1.18 “Effective Date” means the Date of Final Judgement if an Objection has not

been made to the Settlement before such date. However, if an Objection has been made to

the Settlement prior to the Date of Final Judgment, the “Effective Date” shall be the date

sixty (60) days after the Date of Final Judgment if no appeal from the Final Judgment has

been filed in the interim, or, if any such appeal or appeals are filed in the interim, the date

when any such appeal has been resolved in a way that does not alter the terms of the

Settlement.

1.19 “Enhancement Award” shall have the meaning set forth in Section 9.2 of this

Settlement.

1.20 “Final Approval Hearing” means the hearing at which the Court considers

whether to grant final approval of the Settlement.

1.21 “Final Judgment” and/or “Judgment” means the judgment or order to be

rendered and entered by the Court in the Lawsuit upon Final Approval of the Settlement.

1.22 “Individual Class Member Payment” shall have the meaning set forth in


1.23 “Last Known Address” means the most recently recorded mailing address for

a Putative Class Member as such information is contained in the electronic employment or

personnel records maintained by Defendant.

1.24 “Lawsuit” means the action styled Mario Diaz v. Vista Paint Corporation,

Case No. RIC1721348 pending in the Riverside County Superior Court.

1.25 “Net Settlement Consideration” shall have the meaning set forth in Section

4.4 of this Settlement.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1.26 “Notice of Class Action Settlement” shall have the meaning set forth in


1.27 “Notice Packets” shall have the meaning set forth in Section 5.4 of this

Settlement. The Settlement Administrator shall disseminate the contents of the Notice

Packets to Class Members in both the English and Spanish languages.

1.28 “Notice Period” shall have the meaning set forth in Section 5.6 of this

Settlement.

1.29 “Objection Form” shall have the meaning set forth in Sections 5.4 and 6 of

this Settlement.

1.30 “PAGA Payment” shall have the meaning set forth in Section 4.3 of this

Settlement.

1.31 “Participating Class Member” and "Class Member" mean each Putative Class

Member who does not submit a valid and timely Request for Exclusion.

1.32 The “Parties” means the Class Representative and the Defendant.

1.33 “Putative Class Members” shall mean all current and former employees of

Defendant who were employed as non-exempt employees at any of Defendant’s locations

anywhere in California at any time during the Class Period.

1.34 “Reasonable Address Verification Measure” means the utilization of the

National Change of Address Database maintained by the United States Postal Service to

review the accuracy of and, if possible, update a mailing address.

1.35 “Released Claims” shall have the meaning set forth in Section 10.2 of this

Settlement.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1.36 “Released Parties” means Vista Paint, together with its officers, directors,

employees and agents, successors and assigns.

1.37 “Request for Exclusion Form” shall have the meaning set forth in Sections

5.4 and 5.6 of this Settlement.

1.38 “Settlement” means the terms and conditions set forth in this Settlement.

1.39 “Settlement Agreement” means this Amended Class Action Settlement

Agreement.

1.40 “Updated Address” means a mailing address that was updated via Reasonable

Address Verification measures or via an updated mailing address provided by the United

States Postal Service or a Putative Class Member.

2. CONDITIONS PRECEDENT TO EFFECTIVENESS OF SETTLEMENT

The Parties enter into this Settlement on a conditional basis.

2.1 This Settlement will become final and effective only upon the occurrence of

all of the following events. Similarly, Defendant’s obligations under this Settlement will

become final and effective only upon occurrence of all of the following events:

(a) The Court enters an order granting preliminary approval of the

Settlement;

(b) Defendant elects not to exercise its limited rights to terminate this

Settlement pursuant to the grounds described in Sections 3 and 5.9 of

this Settlement;

(c) The Court certifies the Class for settlement purposes;

(d) The Court conducts a Final Approval Hearing;

(e) The Court enters a Final Judgment granting final approval of the

Settlement; and


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

(f) The Effective Date occurs, and any challenge to the Settlement,

whether by objection or appeal, is resolved in favor of enforcement of

the Settlement.

This Settlement shall be deemed null and void ab initio upon the failure of any of the

foregoing conditions to occur. In such event, neither this Settlement, nor any negotiations

leading to this Settlement, nor any information exchanged solely for purposes of furthering

settlement negotiations, will be used or construed by or against any Party as a determination,

admission or concession of any issue of law or fact. The Parties hereto do not waive, and

instead expressly reserve, their respective rights regarding the prosecution and defense of the

Lawsuit, including all available claims, defenses and affirmative defenses, as if this

Settlement never existed.

2.2 The invalidation of any material term of this Settlement will invalidate the

Settlement in its entirety unless the Parties subsequently agree in writing that the remaining

provisions will remain in force and effect.

2.3 In the event of a timely appeal from a Final Judgment, the Judgment will be

stayed and all payments required under this Settlement, other than payments to the

Settlement Administrator for services rendered, will not be paid pending the completion and

final resolution of the appeal, and any payments thereafter will: (a) occur only if the Final

Judgment is upheld after all appeals; and (b) be distributed in a manner that is provided for

in this Settlement and in the Final Judgment.

3. CONDITIONAL CLASS CERTIFICATION

For settlement purposes only, the Parties stipulate to class certification of the Class.

If the Court does not grant preliminary and/or final approval of this Settlement, the Parties

agree that this conditional class certification will automatically be deemed revoked. If,


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

pursuant to Section 5.9, ten percent (10%) or more of the Putative Class Members opt out of

the Class or the Settlement, Defendant maintains the right, in its sole discretion, to revoke

this Settlement, including its stipulation to class certification. In the event of such

revocation of the Settlement, Defendant shall pay the Settlement Administrator for any

Settlement Administration Costs incurred prior to such revocation. If the court does not

grant preliminary and/or final approval of this Settlement, the Parties further stipulate that

this and any future settlement agreement shall not affect Defendant’s ability to maintain that

class certification is inappropriate in this Lawsuit and/or that this Lawsuit cannot be

managed as a representative action.

4. SETTLEMENT CONSIDERATION

4.1 Subject to the claims procedures set forth below, Defendant agrees to pay: (a)

each Putative Class Member his or her individual share of the PAGA Payment for resolution

of the PAGA claims in the Lawsuit, and (b) each Participating Class Member his or her

Individual Class Member Payment as consideration for settlement of his or her other claims

in the Lawsuit. The Class Settlement Amount shall be the aggregate sum of One Million

Dollars ($1,000,000.00) in U.S. currency. Notwithstanding any other provision in this

Settlement, aside from Defendant’s tax liability for payments required by this Settlement, in

no event will Defendant be obligated to pay more than the Class Settlement Amount of One

Million Dollars ($1,000,000.00) to cover all Individual Class Member Payments, Settlement

Administration Costs, PAGA Payments, Class Counsel Award, and Enhancement Award.

The Parties understand and agree that, upon the Effective Date of the Settlement, no part of

the Class Settlement Amount shall revert to Defendant under any circumstances. Instead,

upon the Effective Date, the entirety of the Class Settlement Amount shall be distributed as

set forth in this Settlement. The Parties further understand and agree that Participating Class


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Members shall not be required to submit any claim form in order to receive an Individual

Class Member Payment pursuant to this Settlement.

4.2 Defendant agrees to pay an Enhancement Award of Fifteen Thousand Dollars

($15,000.00) from the Class Settlement Amount to the Class Representative upon Plaintiff’s

application and the Court’s approval, pursuant to Section 9.2. The Class Representative

shall be issued an IRS Form 1099 for any Enhancement Award.

4.3 The Parties allocate a total of Twenty-Five Thousand Dollars ($25,000.00)

from the Class Settlement Amount to settle claims for civil penalties pursuant to the PAGA

(the “PAGA Payment”). California Labor Code Section 2699(i) requires that the parties

distribute any settlement of the PAGA claims as follows: 75% to the State Of California’s

LWDA for enforcement of labor laws and education of employers, and 25% to “aggrieved

employees.” The Parties therefore allocate Eighteen Thousand Seven Hundred Fifty Dollars

($18,750.00) of the PAGA Payment to the State of California’s LWDA, to be paid from the

Class Settlement Amount by the Settlement Administrator. The remaining Six Thousand

Two Hundred Fifty Dollars ($6,250.00) of the PAGA Payment shall be paid to the Putative

Class Members on a per capita basis based on the following formula: The Settlement

Administrator shall determine from information provided by Defendant the total number of

Putative Class Members who were employed by Defendant during the portion of the Class

Period on and after November 9, 2016 (one year prior to Plaintiff’s written notice to the

LWDA) and divide the $6,250.00 allocated to "aggrieved employees" by the total number of

such Putative Class Members employed on and after November 9, 2016, who shall be

deemed "aggrieved employees" with respect to the PAGA Payment. The Settlement

Administrator shall pay the quotient of this division to each such Putative Class Member

who is deemed an "aggrieved employee." Putative Class Members who are deemed


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

“aggrieved employees” shall be entitled to receive their share of the $6,250 portion of the

PAGA Payment regardless of whether they opt out of the Settlement and/or Class by

returning a Request for Exclusion Form. Moreover, Putative Class Members who are

deemed “aggrieved employees” and who do not opt out of the Settlement and/or Class and

therefore qualify as Participating Class Members shall be entitled to receive an Individual

Class Member Payment pursuant to the formula set forth in Section 4.5 in addition to their

share of the $6,250 portion of the PAGA Payment provided for in this section. For the

purpose of calculating applicable taxes, the Parties agree that the entirety of the PAGA

Payment constitutes penalties.

4.4 The “Net Settlement Consideration” shall be the amount of the Class

Settlement Amount available for distribution to the Participating Class Members after

subtracting the Class Counsel Award, Enhancement Award, PAGA Payment, and Settlement

Administration Costs.

4.5 Each Participating Class Member shall receive an Individual Class Member

Payment, less legally required withholdings, which is a share of the Net Settlement

Consideration based on the following formulas. To determine the amount of the Individual

Class Member Payment, the Settlement Administrator shall determine from information

provided by Defendant the total number of work weeks worked by all Participating Class

Members during the Class Period. The Settlement Administrator shall then divide the

amount of the Net Settlement Consideration by the total number of work weeks worked by

all Participating Class Members during the Class Period. The product of this division will

be the amount per work week to be paid to each such Participating Class Member for each

work week such Participating Class Member worked during the Class Period. Specifically,

the Settlement Administrator shall multiply the amount per work week by the number of


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

work weeks worked by each such Participating Class Member during the Class Period and

pay the resulting sum to each such Participating Class Member. The product of this

multiplication shall be the amount of the Individual Class Member Payment which each

Participating Class Member shall be entitled to receive. In addition to the Individual Class

Member Payment, each Participating Class Member who is deemed an “aggrieved

employee” shall be entitled to receive equal shares of the $6,250 portion of the PAGA

Payment pursuant to the formula set forth in Section 4.3. However, Putative Class Members

who opt out of the Settlement and/or Class and therefore do not qualify as Participating

Class Members shall not be entitled to receive an Individual Class Member Payment even if

they are entitled as “aggrieved employees” to receive a share of the $6,250 portion of the

PAGA Payment. For purposes of the foregoing formulas, Defendant shall be entitled to

estimate the number of work weeks worked by Participating Class Members, individually

and collectively, during the Class Period by referring to the time frames worked by

Participating Class Members during the Class Period or to any other available data or

information. For the purpose of calculating applicable taxes under this formula, the Parties

agree that twenty percent (20%) of the Net Settlement Consideration shall be considered to

be paid in the settlement of claims for unpaid wages, that sixty percent (60%) of the Net

Settlement Consideration shall be considered to be paid in the settlement of claims for

unpaid statutory and civil penalties and that the remaining twenty percent (20%) of the Net

Settlement Consideration shall be considered to be paid in the settlement of claims for

interest owed on such wages and penalties.

4.6 Tax Matters.

(A) The Settlement Administrator shall issue an IRS Form W-2 to each

Participating Class Member for the portion of the payment that constitutes


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

wages, and shall issue an IRS Form 1099 to each Participating Class Member

for the portion of the payment that constitutes penalties and interest, and to

the Class Representative for any Enhancement Award. The Settlement

Administrator shall also calculate all legally required withholdings from the

Individual Class Member Payments and shall withhold and remit such

amounts to the relevant taxing authorities. Defendant shall provide the

Settlement Administrator with the necessary information to calculate these

required withholdings and any payroll taxes with respect to the Individual

Class Member Payments.

(B) Defendant shall be responsible for paying the employer’s portion of

any tax liability with respect to payments required by this Settlement separate

and apart from, and in addition to, the Class Settlement Amount, and shall

contribute additional funds as necessary to satisfy these obligations, as

calculated by the Settlement Administrator. Defendant shall not be

responsible for making payroll tax payments on any portion of the Class

Settlement Amount that is attributable to Settlement Administration Costs,

the Class Counsel Award, the PAGA Payment, penalties, interest or any

Enhancement Award.

(C) The Class Representative and any Putative Class Member who

receives any payment pursuant to this Settlement shall be responsible for

correctly characterizing such amounts for tax reporting purposes and shall be

solely responsible for any and all tax obligations associated with such receipt,

except as may be specifically set forth in this Section.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

(D) The Settlement Administrator shall issue a Form 1099 to Class

Counsel for any Class Counsel Award from the Class Settlement Amount.

Class Counsel shall be fully responsible for the payment of any taxes due on

such award.

(E) Payments to Putative Class Members and/or Participating Class

Members will not count as earnings or compensation for purposes of any

benefit plans (e.g., 401(k) plans, retirement plans, etc.) sponsored by

Defendant.

4.7 Unclaimed Portion of the Net Settlement Consideration

The proceeds of all checks to Putative Class Members and Participating Class

Members not cashed within one hundred twenty (120) days of mailing will be distributed in

the manner set forth in California Civil Procedure Code Section 384. Specifically, before

the entry of Judgment, the Court shall determine the total amount that will be payable to all

Class Members if all Class Members are paid the amount to which they are entitled pursuant

to the Judgment. The Court shall also set a date when the Parties shall report to the Court

the total amount that was actually paid to the Class Members. After the report is received,

the Court shall amend the Judgment to direct the Defendant to pay the sum of the unpaid

residue or unclaimed or abandoned Class Member funds to nonprofit organizations or

foundations to support projects that will benefit the Class or similarly situated persons, or

that promote the law consistent with the objectives and purposes of the underlying cause of

action, to child advocacy programs, or to nonprofit organizations providing civil legal

services to the indigent. Alternatively, if the Court so orders, the Parties also agree that that

the proceeds of all checks to Putative Class Members and Participating Class Members not

cashed within one hundred twenty (120) days of mailing may be deposited with the


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

California Department of Industrial Relations Unpaid Wage Fund to be held and

administered in the name of and for the benefit of such Class Members.

4.8 The Individual Class Member Payments and the individual shares of the

PAGA Payment shall be paid according to Sections 4.3, 4.5 and 8 of this Settlement.

5. CLAIMS PROCEDURE

5.1 The Parties designate CPT Group, Inc., as the Settlement Administrator.

5.2. The Settlement Administrator will be responsible for mailing the Notice

Packets, searching for appropriate contact information for Putative Class Members,

collecting documents from Putative Class Members, responding to inquiries from Putative

Class Members, and performing such other duties as the Parties may direct.

5.3 Putative Class Member List. Not later than fifteen (15) days following the

Date of Preliminary Approval, Defendant will provide to the Settlement Administrator, but

not Class Counsel, a list (the “Class List”) identifying each Putative Class Member during

the Class Period, his or her social security number, his/her Last Known Address, and the

estimated number of work weeks worked by each Putative Class Member during the Class

Period. At the same time, Defendant will provide to the Settlement Administrator, but not

Class Counsel, a supplemental list (the "PAGA Aggrieved Employee List") identifying each

Putative Class Member employed by Defendant during any portion of the Class Period on or

after November 9, 2016. The Settlement Administrator shall keep all information contained

in the Class List and PAGA Aggrieved Employee List completely confidential, shall not

share such information with any other person or entity, and shall not use such information

for any purpose other than those expressly described in this Settlement.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

5.4 Notice to Putative Class Members

(A) Immediately upon receipt of the Class List and PAGA Aggrieved

Employee List, the Settlement Administrator shall undertake a Reasonable

Address Verification Measure to ascertain the accuracy of the Last Known

Address for each Putative Class Member. To the extent that this process

yields an Updated Address, that Updated Address shall replace the Last

Known Address and be treated by the Settlement Administrator as the new

Last Known Address.

(B) Not later than twenty (20) days following receipt of the Class List and

PAGA Aggrieved Employee List, the Settlement Administrator shall send,

via U.S. Mail: (a) a Notice of Class Action Settlement substantially in the

form of Exhibit “A” hereto; (b) an Objection Form substantially in the form

of Exhibit “B” hereto; and (c) a Request for Exclusion Form substantially in

the form of Exhibit “C” hereto. The Settlement Administrator shall

disseminate the Notice of Class Action Settlement, Objection Form and

Request for Exclusion Form to Class Members in both the English and

Spanish languages. Collectively, the Notice of Class Action Settlement,

Objection Form and Request for Exclusion Form shall be referred to herein

as the "Notice Packet." Each Notice of Class Action Settlement distributed to

each individual Putative Class Member shall disclose (a) the estimated share

of the Net Settlement Consideration payable to that Putative Class Member

pursuant to the terms of this Settlement, (b) the estimated share of the PAGA

Payment payable to that Putative Class Member pursuant to the terms of this

Settlement, (c) the number of work weeks or any other employment data


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

pertaining to that Putative Class Member on which the Settlement

Administrator relied to calculate these estimated shares, and (d) the estimated

likely recovery by the average Putative Class Member. In addition, the

Notice of Class Action Settlement shall inform each Putative Class Member

who is deemed an “aggrieved employee” pursuant to Section 4.3 that he or

she will be entitled to an equal per capita share of the $6,250 portion of the

PAGA Payment regardless of whether he or she returns a Request for

Exclusion Form. Finally, contemporaneous with the dissemination of the

Notice Packet to the Class, the Settlement Administrator shall post a true and

correct copy of the Settlement with Exhibits on a settlement website to be

established by the Settlement Administrator and notify Class Members as to

the website address in the Notice of Class Action Settlement.

5.5 Date of Mailing and Re-Mailing

(A) A Notice Packet shall be “Deemed Mailed” to the Putative Class

Member to whom it was sent five (5) days after mailing, regardless of

whether it is subsequently returned as undeliverable from the United States

Postal Service. In the event that a Notice Packet is returned to the Settlement

Administrator with a forwarding address, the Settlement Administrator will

re-send the Notice Packet to the forwarding address affixed thereto, and the

forwarding address will be deemed the Updated Address for that Putative

Class Member. In the event that the first mailing of the Notice Packet is

returned without a forwarding address within at least fourteen (14) days prior

to the end of the Notice Period, the Settlement Administrator will

immediately conduct a standard skip trace in an effort to ascertain the current


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

address for the particular Putative Class Member in question. If a more

recent or accurate address is found by this method, the Settlement

Administrator will resend the Notice Packet to the new address within three

(3) calendar days of identifying the new address information. All of the costs

incurred relating to the skip traces described above shall fall within the

definition of Settlement Administration Costs.

(B) In the event the procedures set forth herein are followed and the

intended recipient of a Notice Packet still does not receive the Notice Packet,

or any portion thereof, the intended recipient will nevertheless be deemed a

Class Member and will be bound by all terms of the Settlement and the Final

Judgment entered by the Court.

5.6 Opt-Out and Claims Procedure.

(A) Putative Class Members shall have forty-five (45) days from the date

that the Notice Packet is Deemed Mailed to the Putative Class Members

(referred to hereafter as the “Notice Period”) to return by mail a completed

and signed Objection Form or Request for Exclusion Form to the Settlement

Administrator. The date of mailing of the Objection Form or Request for

Exclusion Form by a Putative Class Member is deemed to be the date the

form is deposited in the U.S. Mail, postage prepaid, as evidenced by the post-

mark. If the last day of the Notice Period falls on a Sunday or legal holiday,

the Notice Period shall be deemed to extend through the next business day.

(B) All Putative Class Members shall receive an individual share of the

PAGA Payment. However, any Putative Class Member who submits a

timely and valid Request for Exclusion Form shall not receive an Individual


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Class Member Payment under this Settlement and shall not be bound by the

Release of Claims set forth in Sections 10.2 and 10.3 of this Settlement. All

other Putative Class Members who do not submit timely and valid Request

for Exclusion Forms shall be deemed Participating Class Members and shall

be bound by all terms of this Settlement.

5.7 Disputes Regarding Individual Shares. Putative Class Members will be

entitled to dispute the number of work weeks or other data used to calculate their estimated

shares of the PAGA Payment and/or Net Settlement Consideration disclosed in the Notice of

Class Action Settlement by: (1) notifying the Settlement Administrator in writing or orally

as to the existence of their dispute; (2) providing the Settlement Administrator with a

proposed correction to the data used to calculate their estimated shares of the PAGA

Payment and/or Net Settlement Consideration; and (3) submitting satisfactory evidence to

the Settlement Administrator to support their proposed correction. In the event of such a

dispute, the Parties and the Settlement Administrator shall meet and confer in good faith in

an attempt to resolve that dispute. If the dispute cannot be resolved in this manner, the

dispute shall be submitted to the Settlement Administrator for resolution and the decision of

the Settlement Administrator shall be considered final and binding. In the event a dispute is

resolved in the Putative Class Member’s favor, the calculation of that Putative Class

Member’s individual shares of the PAGA Payment and/or Net Settlement Consideration will

be revised accordingly. Before the Final Approval Hearing, the Settlement Administrator

will provide a written explanation to any Putative Class Member raising a dispute regarding

the calculation of his or her individual shares of the PAGA Payment and/or Net Settlement

Consideration entitled “Notice Regarding Disputed Calculations.” This document will

inform the Putative Class Member of any change to the calculation of his or her individual


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

share of the PAGA Payment and/or Net Settlement Consideration, set forth the reasons why

no change has been made, or explain that the matter will be resolved at the Final Approval

Hearing.

5.8 Within seven (7) days after the expiration of the Notice Period the Settlement

Administrator shall notify Class Counsel and Defendant’s counsel of the Putative Class

Members who submitted timely and valid Request for Exclusion Forms. The Settlement

Administrator shall identify these Class Members by employee identification number only.

5.9 The Parties and their counsel shall not discourage any Putative Class Member

from participating in the Settlement and shall not encourage or discourage any Putative

Class Member with respect to objecting to or opting out of the Settlement. However, if ten

percent (10%) or more of the Putative Class Members opt out of the Class, then Defendant

shall have the right, in its sole discretion, to void this Settlement and to revoke class

certification. Defendant has ten (10) business days following its notification by the

Settlement Administrator regarding the final number of Class Members who have opted out

of the Class to notify Class Counsel of its intent to revoke the Settlement. In the event of

such revocation of the Settlement, Defendant shall pay the Settlement Administrator for any

Settlement Administration Costs incurred prior to such revocation.

6. OBJECTIONS TO SETTLEMENT

To be eligible to submit an Objection Form, any Putative Class Member who wishes

to object to the Settlement must not have opted out of the Settlement by returning a Request

for Exclusion Form. Any Putative Class Member who wishes to object to the Settlement

must complete, sign and mail the Objection Form to the Settlement Administrator, no later

than forty-five (45) days following the date the Notice Packet is Deemed Mailed. The date

of delivery of any Objection Form is deemed to be the date the Objection Form is deposited


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

in the U.S. Mail, postage pre-paid, as evidenced by the postmark. The Settlement

Administrator will forward to Class Counsel and Defendant’s counsel copies of any and all

Objection Forms received by the Settlement Administrator, and will also attach copies of

such Objection Forms to the Settlement Administrator’s declaration described in Section

11.4 of this Settlement. The Parties, through their counsel, shall also notify the Court of any

Objection Forms prior to the Final Approval Hearing. Any Class Member who fails to

return a timely and valid Objection Form in the manner described above will be deemed to

have waived all objections and/or contests to the Settlement and will be foreclosed from

contesting and/or attacking the fairness or validity of the Settlement (whether by appeal or

otherwise).

7. ABSOLUTE DEADLINE FOR OBJECTION FORMS, REQUESTS FOR

EXCLUSION AND/OR OBJECTIONS

7.1 Notwithstanding any other provision of this Settlement, any Objection Form

or Request for Exclusion Form returned by a Class Member will be considered untimely

submitted if it is postmarked more than forty-five (45) days from the date the Notice Packet

was Deemed Mailed to that Putative Class Member, unless the Parties agree otherwise.

7.2 Not later than seven (7) calendar days after the expiration of the Notice

Period, the Settlement Administrator shall notify Class Counsel and Defendant’s counsel (by

employee identification number only) of: (a) the Putative Class Members who have opted

out of the Class; (b) the details of any objections or corrections to the data used to calculate

their estimated shares of the PAGA Payment and/or Net Settlement Consideration; (c) the

amount of each individual share of the PAGA Payment due to each Putative Class Member;

and (d) the amount of each Individual Class Member Payment due to each Participating

Class Member.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

8. PAYMENT PROCEDURE

8.1 As a condition of receiving any Individual Class Member Payment under this

Settlement, Putative Class Members must become a Participating Class Member by not

opting out of the Class and by releasing the Released Claims. Plaintiff will be issued his

Individual Class Member Payment at the time the Settlement Administrator issues payments

to all Class Members. All Putative Class Members will receive an individual share of the

PAGA Payment, regardless of whether they have become Participating Class Members.

8.2 The Settlement Administrator shall be responsible for mailing (a) the

Individual Class Member Payments to the Class Members and (b) the individual shares of

the PAGA Payment to the Putative Class Members. Not later than ten (10) days following

the Effective Date, Defendant shall transfer the Class Settlement Amount to the Settlement

Administrator. The Settlement Administrator shall mail to each Participating Class Member

and/or Putative Class Member a check in the amount(s) calculated pursuant to Sections 4.3

and 4.5 of this Settlement no later than ten (10) days thereafter. All such checks will

indicate on their face that they are void if not negotiated within ninety (90) days of issuance.

The Settlement Administrator will determine the appropriate method to be used to calculate

payroll tax withholdings. The expense of conducting such calculations shall be considered

part of the Settlement Administration Costs.

8.3 In the event that a settlement check is returned to the Settlement

Administrator with a forwarding address, the settlement check will be forwarded to the

forwarding address. In the event a settlement check is returned to the Settlement

Administrator without a forwarding address or is otherwise undeliverable, the Settlement

Administrator will conduct a skip trace and re-mail the returned check, and the expense of

such search shall be part of the Settlement Administration Costs. If a Class Member


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

contacts the Settlement Administrator or counsel for either Party with a new address within

thirty (30) days of the date the settlement checks are initially mailed to the Class Members,

the settlement check for that Class Member will be reissued and mailed to the new address

provided no later than five (5) days after receipt of the new address for that Class Member.

Any such reissued check will indicate on its face that it is void if not negotiated within sixty

(60) days of its issuance.

9. ATTORNEYS’ FEES AND COSTS, CLASS REPRESENTATIVE

ENHANCEMENT AWARD, AND COSTS OF NOTICE AND

ADMINISTRATION

9.1 Attorneys’ Fees and Costs.

(A) Plaintiff will request, and Defendant will not object to a request, that

the court approve: (a) an award of attorneys' fees in an amount equal to no

more than Three Hundred Thirty-Three Thousand Three Hundred Thirty-

Three Dollars and Thirty-Three Cents ($333,333.33); and (b) an award of

reasonable litigation costs of up to Thirty Thousand Dollars ($30,000.00) to

Class Counsel (collectively, the “Class Counsel Award”). In no event will

Defendant be obligated to pay more than Three Hundred Thirty-Three

Thousand, Three Hundred and Thirty-Three Dollars and Thirty-Three Cents

($333,333.33) with respect to attorneys’ fees.

(B) Defendant will not oppose Class Counsel’s request for the award of

attorneys’ fees and reasonable litigation costs described in this Section, and

agrees that the request is fair and reasonable under the circumstances of this

case.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

9.2 Enhancement Award. Class Counsel will submit an application for Fifteen

Thousand Dollars ($15,000.00) as an “Enhancement Award” to the Class Representative for

his time, effort and participation in this Lawsuit as Class Representative. Defendant will not

oppose a motion for approval of such Enhancement Award and agrees that the request is fair

and reasonable under the circumstances of this case.

9.3 Settlement Administration Costs. Settlement Administration Costs shall

include all costs and expenses due to the Settlement Administrator in connection with its

administration of the claims including, but not limited to, preparing and mailing Notice

Packets, locating Class Members, processing Request for Exclusion Forms and Objection

Forms, calculating withholdings and taxes, and calculating, administering and distributing

payments to Participating Class Members and/or Putative Class Members. All Settlement

Administration Costs shall be paid from the Class Settlement Amount. The Parties have

obtained an estimate from the Settlement Administrator that Settlement Administration

Costs will not exceed Thirteen Thousand Dollars ($13,000.00).

10. RELEASE OF CLAIMS

A. Release of Class Claims.

10.1 Terms of Release. In consideration of the mutual promises contained herein,

the Class Representative and the Participating Class Members, on behalf of themselves and

on behalf of their current, former, and future heirs, executors, administrators, attorneys,

agents, and assigns, do hereby and forever fully and finally release, waive, acquit and

discharge the Released Parties from the Released Claims, as defined below.

10.2 Released Claims of Class Members and the Class Representative

Upon the Effective Date, all Participating Class Members (i.e., excluding those

Putative Class Members who submitting valid and timely Request for Exclusion Forms) will


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

be deemed to have, and by operation of the Final Judgment will have, expressly waived and

relinquished, to the fullest extent permitted by law, all claims stated in the operative FAC

and those based on the facts alleged in the FAC arising at any time during the Class Period

except for claims arising under PAGA (the “Released Claims”). The Released Claims

include, but are not limited to the following claims stated in the FAC: (a) violation of Labor

Code Sections 512(a) and 226.7(b) (denial of meal and rest breaks and failure to pay

statutory penalties based thereon), (b) violation of Labor Code Sections 204, 510, 1194,

1194.2, 1197 and 1197.1 (failure to pay regular, overtime and minimum wages), (c)

violation of Labor Code Section 226(a) (inaccurate wage statements), (d) violation of Labor

Code Sections 201-203, 208 and 227.3 (unpaid wages, including vacation wages, at

termination), and (e) violation of Business and Professions Code Section 17200 et seq.. The

Released Claims include all claims to entitlement to damages, restitution, penalties, interest,

attorneys’ fees, costs, declaratory and other equitable relief stated in the FAC other than

claims for penalties under PAGA. This release covers all such Released Claims against any

Released Party.

10.3 California Labor Code Section 206.5. In connection with the above

Released Claims, and in consideration of Defendant’s payments of the sums provided

herein, each and every Participating Class Member will be deemed also to have

acknowledged and agreed that California Labor Code Section 206.5 is not applicable to the

Parties hereto or the Participating Class Members because there is a good faith dispute as to

whether any wages are due at all to any Participating Class Member. Section 206.5 provides

in pertinent part as follows:

AN EMPLOYER SHALL NOT REQUIRE THE EXECUTION OF A RELEASE

OF A CLAIM OR RIGHT ON ACCOUNT OF WAGES DUE, OR TO BECOME


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

DUE, OR MADE AS AN ADVANCE ON WAGES TO BE EARNED, UNLESS

PAYMENT OF THOSE WAGES HAS BEEN MADE.

10.4 Binding on State of California.

The Parties believe that the settlement of PAGA claims in this Settlement shall be

binding on the State of California under PAGA and in accordance with the doctrine of res

judicata. The Parties further believe that, upon the Effective Date, by virtue of the Court’s

approval of this Settlement, the State of California shall be deemed to be barred from

assessing or collecting any and all additional civil penalties against any Released Party

based on the PAGA claims alleged in the FAC.

C. Mutual General Release by Plaintiff Individually and Defendant.

10.5 Additional Released Claims. In addition to the Released Claims, upon the

Effective Date of the Settlement, Plaintiff individually releases, on behalf of himself alone

and not on behalf of the Class, any and all claims belonging to Plaintiff individually, known

or unknown, contingent or accrued, against the Released Parties arising out of any act or

event that occurred prior to the date of execution of this Settlement.

In exchange, upon the Effective Date of the Settlement, Defendant releases any and

all claims, known or unknown, contingent or accrued, against Plaintiff individually arising

out of any act or event that occurred prior to the date of execution of this Settlement.

The Parties waive the protections of California Civil Code Section 1542, which

provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH

THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN

HIS OR HER FAVOR AT THE TIME OF EXECUTING THE

RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH

THE DEBTOR.

The Parties acknowledge that either may hereafter discover facts in addition to or

different from those which he or it now know or believe to be true, but stipulate and agree

that, upon the Effective Date, Plaintiff will fully, finally and forever settle and release any

and all individual claims he may have against any Released Party and Defendant will fully,

finally and forever settle and release any and all claims it may have against Plaintiff

individually, whether known or unknown, suspected or unsuspected, contingent or non-

contingent, concealed or hidden, which now exist, or heretofore have existed upon any

theory of law or equity and without regard to the subsequent discovery or existence of such

different or additional facts.

Plaintiff agrees not to seek re-employment with Defendant or any parent, subsidiary,

affiliated or successor entities of Defendant.

10.6 Release of ADEA Claims.

Plaintiff’s individual general release of claims in Section 10.5 of this Settlement

includes a release of any individual claim Plaintiff may have under the federal Older

Workers Benefit Protection Act (“OWBPA”) and/or the federal Age Discrimination In

Employment Act of 1967 (”ADEA”). Plaintiff is hereby advised that: (a) this individual

waiver and release do not apply to any rights or claims that may arise after the date he

executes this Settlement; (b) he may consult with an attorney prior to executing this

Settlement and is encouraged to do so; (c) he has at least twenty-one (21) days to consider

this Settlement (although he may by his own choice execute this agreement earlier); (d) he

has seven (7) days following the execution of this Settlement to revoke his individual

agreement to Section 10.5, in which case Sections 10.5 and 10.6 of this Settlement shall be


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

null and void, and the other provisions of this Settlement shall remain in full force and

effect; and (e) Section 10.5 of this Settlement shall not be effective until he has executed this

Settlement and the period to revoke his individual agreement to Section 10.5 has expired.

To revoke Plaintiff’s individual agreement to Section 10.5 of this Settlement, Plaintiff (or

his attorney) must notify Defendant’s counsel in a writing received by Defendant’s counsel

no more than seven (7) days after Plaintiff executes this Settlement.

11. MOTION FOR COURT APPROVAL

11.1 Promptly after the execution of this Settlement, Class Counsel shall submit to

the Court: (a) a fully executed copy of this Settlement; (b) a noticed motion seeking the

Court’s preliminary approval of this Settlement; (c) a proposed order granting such

preliminary approval and setting a Final Approval Hearing; and (d) any other documents

consistent with the Settlement reasonably necessary to obtain the Court’s approval of the

Settlement. The Parties will ask the Court to maintain jurisdiction of this matter for the

purpose of monitoring compliance with and performance under this Settlement and any and

all orders and judgments, including the Final Judgment, entered by the Court. The Parties

will also ask the Court to stay the Lawsuit, including all pending litigation and discovery

activity, all pending deadlines, and all Court proceedings in the Lawsuit, other than a Motion

For Preliminary Approval of the Settlement, a Motion for Final Approval of the Settlement,

a Motion for the Class Counsel Award and Enhancement Award or any other Order

necessary to enforce the terms of this Settlement, until the earlier of: (a) the date of Final

Judgment; (b) the date, if any, upon which Defendant revokes the Settlement pursuant to

Sections 3 and 5.9; or (c) the date, if any, the Court denies a Motion for Preliminary

Approval with prejudice or a Motion for Final Approval with prejudice.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

11.2 The Parties shall request that a Final Approval Hearing be set within a

reasonable time after the last day of the Notice Period.

11.3 Prior to the Final Approval Hearing, Plaintiff shall file with the Court his

Motion for the Class Counsel Award and the Enhancement Award.

11.4 No later than twenty-one (21) court days before the Final Approval Hearing,

the Settlement Administrator shall provide Class Counsel and counsel for Defendant with a

declaration showing compliance with the terms of this Settlement to be filed with the Court

by Class Counsel.

11.5 Prior to the Final Approval Hearing, Class Counsel shall file a Motion for

Final Approval and any other documents reasonably necessary to obtain the Court’s final

approval of the Settlement and entry of Final Judgment approving of and enforcing the

Settlement.

11.6 Upon final approval of the Settlement by the Court at or after the Final

Approval Hearing, the Parties shall present the Final Judgment to the Court for its approval.

After entry of the Final Judgment, the Court shall have continuing jurisdiction solely for

purposes of addressing: (a) the interpretation and enforcement of the terms of this

Settlement, (b) Settlement administration matters, and (c) such post-Final Judgment matters

as may be appropriate under court rules or as set forth in this Settlement.

12. MISCELLANEOUS PROVISIONS

12.1 All of the Parties have been represented by counsel throughout all

negotiations that preceded the execution of this Settlement, and this Settlement is made with

the consent and advice of counsel.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

12.2 The Parties and Class Members waive their right to seek any form of

appellate review over any order or Judgment that is consistent with the terms of this

Settlement.

12.3 This Settlement may not be modified or amended, except in a writing that is

signed by the respective counsel of record for the Parties and approved by the Court.

12.4 This Settlement and the exhibits hereto constitute the entire agreement

between the Parties concerning the subject matter hereof, and supersede and replace all prior

negotiations, understandings, memoranda of understanding and proposed agreements,

written and oral, relating thereto. No extrinsic oral or written representations or terms shall

modify, vary or contradict the terms of the Settlement unless made in writing and signed by

duly authorized representatives of all Parties and approved in writing by a final order of the

Court. No waiver of any term, provision or condition of this Settlement, whether by conduct

or otherwise, in any one or more instance shall be deemed to be or construed as a further or

continuing waiver of any such term, provision or condition. The Parties and their respective

counsel all participated in the negotiation and drafting of this Settlement and had available

to them the advice and assistance of independent counsel. Thus, no Class Member may

claim that any ambiguity in this Settlement should be construed against Defendant.

12.5 This Settlement shall be subject to, governed by, construed, enforced, and

administered in accordance with the laws of the State of California, without giving effect to

the principles of conflict of laws, and shall be subject to the continuing jurisdiction of the

Court. This Settlement shall be construed as a whole according to its fair meaning and

intent, and not strictly for or against any Party, regardless of who drafted or who was

principally responsible for drafting this Settlement or any specific term or condition thereof.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

12.6 This Settlement may be executed in one or more counterparts, each of which

shall be deemed an original and together shall constitute one and the same instrument.

When each of the Parties has signed at least one such counterpart, this Settlement shall

become effective and binding as to all of the Parties as of the date of the last signature upon

the Settlement. Fax or electronic signatures and copies of signatures shall be deemed as

effective as originals.

12.7 Except as specifically provided herein, the Parties hereto will bear

responsibility for their own attorneys’ fees and costs, taxable or otherwise, incurred by them

or arising out of this Lawsuit, and will not seek reimbursement thereof from any Party to this

Settlement. In the event that legal action arises out of this Settlement or is necessary to

enforce any of the terms or provisions of this Settlement, the prevailing party in the action

shall be entitled to recover its reasonable attorneys’ fees and costs.

12.8 The Parties and their counsel agree that they will not issue any press releases

or press statements, post any internet disclosures, have any communications with the press

or media about the Lawsuit or this Settlement, or otherwise publicize the terms of this

Settlement. Notwithstanding the foregoing: (a) Class Counsel shall be allowed to refer to

the Settlement in support of other court filings in other litigation; (b) counsel for the Parties

shall be allowed to refer to the Settlement in communications with Class Members; (c) the

Parties shall have the right to disclose the Settlement as may be required under federal or

state tax and/or securities laws or under Generally Accepted Accounting Principles; and (d)

the Parties shall have the right to disclose the Settlement to third parties without identifying

the case name, case number, or the names of any parties or released persons or entities. The

provisions of this paragraph do not apply to communications between a Party and a

Released Party.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

12.9 Each individual signing this Settlement warrants that he or she has the

authority and is expressly authorized to enter into this Settlement on behalf of the Party for

which that individual signs.

12.10 The Settlement shall be binding upon and inure to the benefit of the Parties’

respective successors, assigns, heirs, spouses, marital communities, executors,

administrators and legal representatives.

12.11 This Settlement and any and all proceedings or documents arising out of or

relating thereto shall not be construed as an admission of the truth of any allegation or the

validity of any claim asserted or of any liability, nor shall this Settlement, the Settlement

contained herein, nor any papers arising out of or relating thereto be offered or received in

evidence or in any way referred to in any civil or administrative proceeding other than such

proceedings as may be necessary to approve or enforce this Settlement. Class Members are

deemed by operation of the Final Judgment and order of final approval of the Settlement to

represent, covenant and warrant that they have not directly or indirectly assigned,

transferred, encumbered, or purported to assign, transfer, or encumber to any person or

entity any portion of any liability, claim, demand, cause of action or rights herein released

and discharged.

12.12 Even after the Final Judgment and notwithstanding it, this Court will have

and retain continuing jurisdiction over the Lawsuit and over all Parties and Class Members,

to the fullest extent necessary or convenient to enforce and effectuate the terms and intent of

this Settlement and all matters provided for in it, and to interpret it.

12.13 The absolute maximum amount of money to be paid by Defendant under this

Settlement is, in the aggregate (irrespective of how or to whom such monies are distributed),

One Million Dollars ($1,000,000.00), plus Defendant’s tax liability with respect to the


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

EXHIBIT A

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Questions? Please Call: 1(XXX) XXX-XXXX or Visit www.XXXX.com

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF RIVERSIDE MARIO DIAZ, an individual, appearing individually and in a representative capacity,

Plaintiff,

vs. VISTA PAINT CORPORATION, a California corporation; and DOES 1-25,

Defendants.

Case No.: RIC1721348 NOTICE OF CLASS ACTION SETTLEMENT Filing Date: November 9, 2017 Trial Date: None Set PAGA Notice Date: November 9, 2017

To: Any and all current and former employees of Vista Paint Corporation (hereinafter "Vista

Paint” or “Defendant”), who were employed as non-exempt (i.e., hourly-paid) employees at any of its locations anywhere in California at any time from June 30, 2015 through [Date of Preliminary Approval].

THIS NOTICE MAY AFFECT YOUR RIGHTS. PLEASE READ IT CAREFULLY.

PLEASE DO NOT CONTACT THE COURT OR

THE COURT CLERK REGARDING THIS MATTER.

YOU ARE RECEIVING THIS NOTICE BECAUSE VISTA PAINT’S RECORDS INDICATE YOU MAY BE ENTITLED TO PARTICIPATE IN THIS CLASS ACTION SETTLEMENT. THE FOLLOWING RECITATION DOES NOT CONSTITUTE THE FINDINGS OF THE COURT. IT SHOULD NOT BE UNDERSTOOD TO BE AN EXPRESSION OF THE COURT’S VIEWS ON THE MERITS OF ANY CLAIM OR DEFENSE RAISED BY THE PARTIES. THE COURT HAS DETERMINED ONLY THAT THERE IS SUFFICIENT EVIDENCE TO SUGGEST THAT THE PROPOSED SETTLEMENT MIGHT BE FAIR, ADEQUATE, AND REASONABLE AND THAT ANY FINAL DETERMINATION OF THOSE ISSUES WILL BE MADE AT THE FINAL HEARING. WHY IT IS IMPORTANT TO READ THIS NOTICE:

The Superior Court of the State of California in and for the County of Riverside (the “Court”) has granted preliminary approval to a proposed settlement (the “Settlement”) of a class action lawsuit (the "Lawsuit") regarding wage and hour claims of persons who were employed by Vista Paint Corporation (hereinafter "Vista Paint" or “Defendant”), as non-exempt (i.e., hourly-paid) employees at any of Vista Paint's locations anywhere in California at any time during the period

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Questions? Please Call: 1(XXX) XXX-XXXX or Visit www.XXXX.com 2

from June 30, 2015 through [Date of Preliminary Approval]. Because your rights may be affected by the Settlement, it is important that you read this Notice carefully. Vista Paint’s records show that you worked as a non-exempt employee of Vista Paint in California during some or all of the period after June 30, 2015 through [Date of Preliminary Approval]. Therefore, you are a “Class Member” in this Lawsuit. The purpose of this Notice is to provide you with a brief description of the Lawsuit and the investigation of claims which has taken place and, furthermore, to inform you of the terms of the proposed Settlement and to discuss your rights and options in connection with the Lawsuit and the Settlement. WHAT THE CASE IS ABOUT:

A former Vista Paint employee, Mario Diaz (the "Class Representative"), has made a variety of claims against Vista Paint alleging that Vista Paint’s wage and hour practices violated California labor law. The claims affect any and all current and former non-exempt employees employed at any of Vista Paint’s locations at any time during the period from June 30, 2015, and through [Date of Preliminary Approval]. On behalf of himself and on behalf of other non-exempt (i.e., hourly-paid) employees, the Class Representative claims that Vista Paint failed to comply with California wage and hour laws in that it allegedly failed to provide legally-compliant meal and rest breaks and to pay statutory penalties based thereon, allegedly failed to pay all regular, overtime and minimum wages owed, allegedly failed to provide and keep accurate and complete wage statements, allegedly failed to pay all wages, including vacation wages, due upon separation of employment and allegedly committed unfair business based on these alleged wage and hour violations. In bringing his claims against Vista Paint, the Class Representative has sought to obtain, among other things, alleged unpaid wages and other statutory and civil penalties on behalf of or with respect to other non-exempt Vista Paint employees. Vista Paint denies each and every allegation made by the Class Representative in the Lawsuit. Vista Paint maintains that it authorized and permitted legally-compliant meal and rest breaks to all of its employees, paid all regular, overtime and minimum wages owed its employees, provided legally-compliant wage statements to its employees, paid all wages, including vacation wages, due upon separation of employment and did not violate California law. But Vista Paint wishes to avoid the burden and expense of continued litigation and so is willing to enter into the Settlement. Although Vista Paint denies these allegations, it has chosen to resolve the Lawsuit based upon the terms and conditions set forth in the Settlement now before the Court for approval. The Settlement agreement provides for the certification for settlement purposes only of a “Class” consisting of all current and former non-exempt employees employed at any of Vista Paint’ locations in California, at any time during the period from June 30, 2015, and through [Date of Preliminary Approval]. The terms of the Settlement are set forth more fully in the next section, but generally Vista Paint has agreed to pay a total of $1,000,000.00 to resolve the claims should the Court grant final approval to the proposed Settlement.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


THE SETTLEMENT OF THE CLAIMS:

The Settlement agreement resolves the following disputed claims against Vista Paint set forth in the Class Representative's First Amended Complaint filed in the Lawsuit: (i) violation of Labor Code §§ 512(a) and 226.7(b), (c) (denial of meal and rest breaks and failure to pay penalties based thereon), (ii) violation of Labor Code §§ 204, 510, 1194, 1194.2, 1197 and 1197.1 (failure to pay regular, overtime and minimum wages), (iii) violation of Labor Code § 226(a) (inaccurate wage statements), (iv) violation of Labor Code §§ 201-203, 208 and 227.3 (unpaid wages, including vacation wages, at discharge), (v) violation of Business and Professions Code §§ 17200 et seq. and (vi) non-class, representative claims under the Private Attorneys General Act (“PAGA”), Labor Code §§ 2698 et seq. If you choose not to “opt out” of the Settlement as discussed below, the effect of your choice will be that you will release all of these claims in the First Amended Complaint against Vista Paint and its officers, directors, employees and agents, successors and assigns, including claims based on the facts alleged in the First Amended Complaint, except for those claims arising under PAGA which are not subject to release. The Class Representative and her legal counsel ("Class Counsel") believe the Settlement is in the best interest of the Class. Through this Settlement, neither Vista Paint nor any of its employees has admitted any liability or wrongdoing, and, on the contrary, Vista Paint expressly denies any wrongdoing. The Court did not decide in favor of Plaintiff or Vista Paint. The Settlement agreement has been preliminarily approved by the Court. A full copy of the Settlement agreement is contained in a document entitled "Amended Class Action Settlement Agreement," and can be inspected, as well as other public documents filed in the Lawsuit, at the Office of the Court Clerk for the Riverside County Superior Court, located at 4050 Main Street, Riverside, California 92501. A copy of the Settlement agreement may be found in the Court files attached as Exhibit __ to the Supplemental Declaration of Gregg A. Farley in Support of Motion for Preliminary Approval of Class Action Settlement filed on _______ __, 201_. To obtain a copy of the Settlement agreement, you may also visit the Settlement website at www.XXXX.com.

THE TERMS OF THE CONDITIONAL CLASS ACTION SETTLEMENT:

On behalf of the Class Members, the Class Representative has reached a voluntary settlement agreement with Vista Paint, and on [Date of Preliminary Approval], the Court conditionally certified a class, for settlement purposes only, comprised of the following persons (collectively, the “Class”):

The Class: Any and all current and former employees of Vista Paint who were employed as non-exempt employees at any of its locations anywhere in California at any time from June 30, 2015 through [Date of Preliminary Approval].

Without admitting liability, Vista Paint has agreed to pay a total of $1,000,000.00 for settlement of the claims in this matter (the “Class Settlement Amount”). Class Members who do not opt out of the Class pursuant to the procedures set forth in this notice will be entitled to share in the Settlement proceeds, will be bound by the Settlement and will release all of the Released Claims against Vista Paint, in this Lawsuit (see below for more information).

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


This Settlement is conditioned upon the Superior Court of the State of California for the County of Riverside entering a Judgment at or following the hearing finally approving the Settlement (the “Final Approval Hearing”) declaring the Settlement to be fair, reasonable, adequate, and in the best interests of the Class. If the Court approves of certain distributions from the Class Settlement Amount, the net amount to be distributed to the Class (the "Net Settlement Consideration") as a result of the Settlement is estimated to be approximately $___________. Any Class Member who does not opt out of the Settlement (referred to as a “Participating Class Member”) will receive a lump sum payment known as the “Individual Class Member Payment.” The Individual Class Member Payment for each Participating Class Member shall be determined on a pro-rata basis based on the number of work weeks during which the Participating Class Member worked for Vista Paint during the class period from June 30, 2015 through [Date of Preliminary Approval]. In addition, each Class Member who was employed by Vista Paint on or after June 30, 2015, regardless of whether he or she opts out of the Settlement, will also receive an equal per capita share out of the sum of $6,250.00, which is allocated from the Class Settlement Amount to so-called "aggrieved employees" as part of the settlement of the Class Representative's claims under PAGA. Specifically, the sum of $6,250.00 will be divided by the number of Class Members who qualify as “aggrieved employees” by having worked for Vista Paint on or after June 30, 2015, and the dollar amount resulting from this division will be paid to such Class Members. Furthermore, $18,750.00 will be paid to the California Labor and Workforce Development Agency from the Class Settlement Amount as part of the settlement of such PAGA claims. For purposes of calculating applicable taxes with respect to the above-mentioned Settlement distributions, the Class Representative and Vista Paint (collectively, the “Parties”) have agreed that 20% of the Net Settlement Consideration shall be considered to be paid in the settlement of claims for unpaid wages, that 60% of the Net Settlement Consideration shall be considered to be paid in the settlement of claims for unpaid statutory and civil penalties and that the remaining 20% of the Net Settlement Consideration shall be considered to be paid in the settlement of claims for interest owed on such wages and penalties. In addition, 100% of the payment of $6,250.00 divided into equal shares paid to Class Members who qualify as “aggrieved employees” under PAGA shall be considered to be paid in the settlement of claims for penalties. The Net Settlement Consideration will be determined by deducting from the Class Settlement Amount the following payments, subject to final approval by the Court: (i) an Enhancement Award to the Class Representative in the amount of $15,000.00, in recognition of his services to the Class (in addition to whatever Individual Class Member Payment the Class Representative will receive as a Participating Class Member); (ii) an award of $333,333.33 to Class Counsel for their attorneys' fees incurred in prosecuting the Lawsuit; (iii) an award of up to $30,000.00 to Class Counsel as reimbursement of their actual, out-of-pocket litigation costs and expenses; (iv) an award of approximately $13,000.00 to the Settlement Administrator for Settlement Administration Costs; and (v) $25,000.00 allocated to the settlement of the Class Representative's PAGA claims. WHAT YOU ARE ESTIMATED TO RECEIVE UNDER THE SETTLEMENT:

If you chose not to “opt out” of the Settlement (see discussion below on this topic), it is estimated that you individually will receive approximately $___________ under the Settlement, consisting of $____________ as your pro rata share of the above-mentioned Net Settlement Consideration

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


and $_____________ as your equal share of the $6,250.00 allocated to “aggrieved employees” under the PAGA. The estimate of your pro rata share of the Net Settlement Consideration is based on Vista Paint’s records showing that you worked __________ work weeks during the Class Period from June 30, 2015 through [Date of Preliminary Approval]. Meanwhile, the estimate of your equal share of the $6,250.00 payment under PAGA is based on Vista Paint’s records showing that ________ aggrieved employees worked for Vista Paint in California during the period from November 9, 2016 through [Date of Preliminary Approval]. Furthermore, it is estimated that the likely recovery of the average Class Member will be approximately $_________. WHAT YOU NEED TO DO IN RESPONSE TO THIS NOTICE:

You have received this Notice because Vista Paint’s records indicate that you are a member of the conditionally certified Class. All Class Members have the following three options: 1. IF YOU WISH TO PARTICIPATE IN THE CLASS ACTION SETTLEMENT,

REMAIN A MEMBER OF THE CLASS AND RECEIVE A PAYMENT UNDER THE SETTLEMENT, YOU ARE NOT REQUIRED TO TAKE ANY FURTHER ACTION. You will receive payment if the Court grants final approval to the Settlement and Judgment becomes final. If you receive a payment under this Settlement, you will also be releasing the “Released Claims” against Vista Paint and its officers, directors, employees and agents, successors and assigns (see next section for definition of "Released Claims"). If you wish to receive a payment under the Settlement, you must not “opt out” of the Settlement. As stated above, this Notice identifies the estimated number of work weeks that, according to Vista Paint's records, you worked as a non-exempt employee for Vista Paint in California, during the period from June 30, 2015 through [Date of Preliminary Approval]. If you disagree with Vista Paint's records as to the number of work weeks you worked during the above-mentioned period, you must contact the Settlement Administrator at the address and/or telephone number shown at the end of this Notice, to notify the Administrator regarding your dispute and provide to the Administrator whatever documentation is in your possession supporting your contention as to the number of work weeks which you worked. However, if you agree with Vista Paint's records as to the number of work weeks you worked, you need do nothing further to receive your share of the Settlement proceeds.

2. YOU MAY ELECT TO “OPT OUT” OF THE CLASS AND THUS EXCLUDE YOURSELF FROM THE SETTLEMENT INCLUDING: (1) RECEIVING THE ASSOCIATED INDIVIDUAL CLASS MEMBER PAYMENT; AND (2) THE ASSOCIATED RELEASE OF CLAIMS AND STIPULATED JUDGMENT. If you want to exercise this option, you must complete and sign the Request for Exclusion Form accompanying this Notice and follow the steps set forth therein to mail the Request for Exclusion Form to the Settlement Administrator on or before [date of expiration of the Notice Period]. If your Request for Exclusion Form is not received by the Settlement Administrator postmarked on or before the [date of expiration of the Notice Period], you will be deemed to have forever waived your right to opt out of the Class. Class Members who do not properly opt out of the Settlement shall be Participating Class Members and bound by the terms of the Settlement, including the release of Released Claims. Class Members who do properly opt out of the Settlement shall have no further role or involvement in this Lawsuit. However, such Class Members who opt out of the Settlement

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


will still receive an equal share of the $6,250.00 payment under PAGA. 3. FINALLY, PROVIDED YOU DO NOT OPT OUT OF THE CLASS, YOU MAY

OBJECT TO THE SETTLEMENT. You may object to the Settlement by completing and mailing or otherwise delivering to Settlement Administrator the Objection Form accompanying this Notice, on or before [date of expiration of the Notice Period], to the following address: CPT Group, Inc., 50 Corporate Park, Irvine, California 92606. Objections Forms returned to the Administrator by mail must be postmarked no later than the above-mentioned date. The Objection Form must be signed and dated and additionally state the Class Member's name, address, last four digits of social number, and the basis for the objection. You may also appear and object to the Settlement at the Final Approval Hearing discussed below without mailing or returning the Objection Form.

If you take no action, you will be considered a Participating Class Member (i.e., a Class Member who does not opt out of participation in the Settlement), be bound by the Judgment and will receive payment under the Settlement. If you choose to be a Participating Class Member, you will be represented by the attorneys for the Class Representative, who have been designated by the Court as Class Counsel: Law Offices of Gregg A. Farley, Gregg A. Farley, 880 Apollo Street, Suite 222, El Segundo, California 90245 (310) 445-4024, and Law Offices of Sahag Majarian II, Sahag Majarian II, 18250 Ventura Boulevard, Tarzana, California 91356 (818) 609-0807. RELEASE OF CLAIMS OF CLASS MEMBERS:

If the Court approves the Settlement, Class Members who do not opt out of the Settlement will remain subject to the Judgment rendered by the Court pursuant to the Settlement agreement and be precluded from bringing similar claims in the future for the period June 30, 2015 through [Date of Preliminary Approval]. Specifically, after Court approval, the Settlement will fully release and discharge all Released Claims (as defined below) of Participating Class Members against Vista Paint and its officers, directors, employees and agents, successors and assign.

“Released Claims” shall collectively mean all claims stated in the Class Representative's First Amended Complaint filed in the Lawsuit and those claims based on the facts alleged in the First Amended Complaint that each Participating Class Member had, now has, or may hereafter claim to have against Vista Paint and its officers, directors, employees and agents, successors and assigns, arising at any time during the Class Period from June 30, 2015 through [Date of Preliminary Approval]. The Released Claims stated in the First Amended Complaint filed in the Lawsuit consist of and include claims for (a) failure to provide meal and rest breaks and pay statutory penalties based thereon, (b) failure to pay regular, overtime and minimum wages, (c) failure to provide and keep accurate and complete wage statements, (d) failure to pay wages, including unpaid vacation wages, at termination and (e) unfair business practices based on the foregoing. THE NEXT STEP:

The Final Approval Hearing on the adequacy, reasonableness, and fairness of the class action settlement will be held at 8:30 a.m. on _______, __, 2019 [insert date] in Department 7 of the Riverside County Court located at 4050 Main Street, Riverside, California 92501-3703. You are not required to attend the Final Approval Hearing, although any Class Member is welcome

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


to attend the hearing. HOW TO OBTAIN ADDITIONAL INFORMATION:

This Notice is only a summary of the Lawsuit and the associated class action Settlement. For more information, you may inspect the Court files and the Settlement agreement at the Office of the Court Clerk for the Riverside County Superior Court located at 4050 Main Street, Riverside, California 92501-3703 during regular court hours. A copy of the Settlement agreement may be found in the Court files attached as Exhibit __ to the Supplemental Declaration of Gregg A. Farley in Support of Motion for Preliminary Approval of Class Action Settlement filed on _______ __, 201_. To obtain a copy of the Settlement agreement, you may also visit the Settlement website at www.XXXX.com. You may also contact Class Counsel or counsel for Vista Paint for more information: Class Counsel: Counsel for Vista Paint: Law Offices of Gregg A. Farley Gregg A. Farley 880 Apollo Street, Suite 222, El Segundo, California 90245 Tel: (310) 445-4024

Rachelle Singer, Esq. Attorney at Law 2020 E. Orangethorpe Ave., Suite 210 Fullerton, California 92831 Tel: (714) 964-3021

Law Offices of Sahag Majarian II, 18250 Ventura Boulevard, Tarzana, California 91356 Tel: (818) 609-0807

Finally, you may also contact the Claim Administrator: CPT Group, Inc., 50 Corporate Park, Irvine, California 92606, 1 (XXX) XXX-XXXX.

PLEASE DO NOT CALL OR WRITE TO THE COURT ABOUT THIS NOTICE.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

EXHIBIT B

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


Mario Diaz v. Vista Paint Corporation Superior Court of the State of California, County of Riverside

Case No. RIC1721348

REQUEST FOR EXCLUSION FORM

DO NOT FILL OUT THIS FORM if you want to be included in this class action Settlement and to receive your portion of the Settlement.

INSTRUCTIONS

If you do not want to participate in the Settlement, you may “opt out” of the Settlement by returning this Request for Exclusion Form. If you choose to opt out of the Settlement: (i) you will have no right to receive any money under the Settlement (except for a small portion of the Settlement allocated to claims arising under the Private Attorneys General Act); (ii) you will not be bound by the Settlement; (iii) you will have no right to object to the Settlement and/or be heard at the final approval hearing; and (iv) regardless of your decision to opt out of the Settlement, the Settlement may still be approved by the Court.

To opt out, you must sign and return this Request for Exclusion Form to the Settlement Administrator, at the address listed below. To be valid, the Request for Exclusion Form must be postmarked (if mailed) or otherwise delivered to the address listed below not later than _____________, 201_.

CPT GROUP, INC.

SETTLEMENT ADMINISTRATOR 50 Corporate Park Irvine, CA 92606

1(XXX) XXX-XXXX

OPT OUT SIGNATURE

By signing this Request for Exclusion Form, I hereby opt out of the lawsuit and the Settlement. By signing this Request for Exclusion Form, I understand that I will have no right to receive any money under the Settlement (except for a small portion of the Settlement allocated to claims arising under the Private Attorneys General Act), and I will have no right to object to the Settlement and/or be heard at the final approval hearing.

Please Type or Print, Sign and Date

Date: __________ _________________________________ Signature _________________________________ Print Name _________________________________ Street Address _________________________________ City, State, Zip Code

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


_________________________________ Telephone Number(s) _________________________________ Last 4 Digits of Social Security No.


1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

EXHBIT C

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


Mario Diaz v. Vista Paint Corporation Superior Court of the State of California, County of Riverside

Case No. RIC1721348

OBJECTION FORM

DO NOT FILL OUT THIS FORM unless you want to object to this class action Settlement.

INSTRUCTIONS

If you want to object to the Settlement, you may submit your objection to the Settlement Administrator using this Form.

To submit a valid objection, you must sign and return this Objection Form to the Settlement Administrator at the address listed below. To be valid, the Objection Form must be postmarked (if mailed) or otherwise delivered to the address listed below not later than _____________, 201_.

CPT GROUP, INC.

SETTLEMENT ADMINISTRATOR 50 Corporate Park Irvine, CA 92606

1(XXX) XXX-XXXX

You may also, if you wish, appear at the Final Approval Hearing set for __________, 2019 at 8:30 a.m. in Dept. 7 of the Riverside County Superior Court and discuss your objections with the Court and the Parties. In the event the Court continues the date of the Final Approval Hearing, you will receive written notice of the new date of the Final Approval Hearing if you return an Objection Form by the date set forth above. If you wish to appear at the Final Approval Hearing you should state your intention to do so below when stating your objection. If you have submitted a Request for Exclusion Form, you may not submit an objection to the Settlement. You do not need to appear at the Final Approval Hearing to have your objection considered by the Court. If the Court overrules your objection to the Settlement, you will still receive your share of the Settlement, and you will have released Vista Paint and its officers, directors, employees and agents, successors and assigns from the Released Claims as provided for in the Notice of Class Action Settlement. Please state below in the space provided all of the basis or grounds for your objection to the Settlement (you may include additional pages if necessary): _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ // // //

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28


OBJECTION SIGNATURE

By signing this Objection Form, I hereby submit the above-stated objection to the Settlement.

Please Type or Print, Sign and Date

Date: __________ _________________________________ Signature _________________________________ Print Name _________________________________ Street Address _________________________________ City, State, Zip Code _________________________________ Telephone Number(s) _________________________________ Last 4 Digits of Social Security No.

Documents

Gregg A. Farley (State Bar No. 115593) LAW OFFICES OF