Document:

Settlement Agreement and Release

 Exhibit No. 10.1 
  

			
	 Todd M. Schneider (CA Bar No. 158253)
 Carolyn H. Cottrell (CA Bar No. 166977)
 W.H. “Hank” Willson, IV (CA Bar No. 233321)
 SCHNEIDER WALLACE
 COTTRELL BRAYTON KONECKY
LLP
 180 Montgomery Street, Suite 2000
 San Francisco, California 94104
 Tel: (415) 421-7100
 Fax: (415) 421-7105
 TTY: (415) 421-1665
  
	  	 Alfred J. Landegger (CA Bar No. 84419)
 Michael S. Lavenant (CA Bar No. 198765)
 Oscar E. Rivas (CA Bar No. 211510)
 LANDEGGER, BARON, LAVENANT & INGBER
 A Law
Corporation
 5760 Ventura Blvd., Suite 1200
 Encino, CA 91436
 Tel: (818) 986-7561
 Fax: (818) 986-5147

	 Shanon J. Carson
 BERGER &
MONTAGUE, P.C.
 1622 Locust Street
 Philadelphia, Pennsylvania 19103
 Tel: (215) 875-4656
 Fax: (215) 875-4604
	  
	  
 Attorneys for Plaintiff Matthew Ozga and
 others similarly situated
	  	  
 Attorneys for Defendant U.S. Remodelers, Inc.

 UNITED STATES DISTRICT COURT 
 NORTHERN DISTRICT OF CALIFORNIA 
  

			
	 MATTHEW OZGA, on his own behalf
 individually and on behalf of others similarly
 situated,
  
 Plaintiffs,
  
 vs.
  
 U.S. REMODELERS, INC., U.S.
 REMODELERS, INC. dba
U.S. HOME
 SERVICES, and DOES 1-25, inclusive,
  
 Defendants.
  
	  	 Case No. 3:09-cv-05112 JSW
  
 SETTLEMENT AGREEMENT AND RELEASE

  

 1 

 SETTLEMENT AGREEMENT AND RELEASE 
 1. IT IS HEREBY STIPULATED AND AGREED by and between Defendant U.S. Remodelers, Inc. and Plaintiff Matthew Ozga, individually and on behalf
of the Settlement Class, as defined herein, and Boris Moshkovich, that the settlement of this Class Action, subject to the approval of the Court pursuant to Rule 23(e) of the Federal Rules of Civil Procedure, shall be effectuated under the
following terms and conditions: 
 I. DEFINITIONS 
 2. As used in this Settlement Agreement, the following terms shall have the following meanings: 
 a. “Claims Administrator” means CPT Group, Inc. 
 b. “Claim Form” means the form provided for Settlement Class Members to submit under penalty of perjury in order to obtain a Settlement Award under this Settlement Agreement, as set forth in
Exhibit B attached to this Settlement Agreement. 
 c. “Claims Released” with respect to Matthew Ozga and Boris
Moshkovich only, means any and all claims, demands, rights, liabilities, penalties, liquidated damages, causes of action and other legal responsibilities, of any form whatsoever, whether based upon federal, state, local, statutory or common law or
any other law, rule or regulation, whether known or unknown, unforeseen, unanticipated, unsuspected, or latent, that (a) have accrued prior to the date of preliminary approval of this settlement, and (b) have been or could have been
asserted by Matthew Ozga or Boris Moshkovich, or a successor or assign of Matthew Ozga or Boris Moshkovich, whether directly, indirectly, representatively, derivatively or in any other capacity, against any of the Released Parties. 
 d. “Claims Submission Period” means the time period of 45 days commencing on the date when the Class Notices and the Claim Forms
are mailed to the Settlement Class, in which Settlement Class Members may submit their executed Claim Forms to receive a Settlement Award under this Settlement Agreement. 
  

 2 

 e. “Class Action” means the civil action titled Ozga v. U.S. Remodelers, Inc.,
et al., pending in the United States District Court for the Northern District of California, Case No. 3:09-cv-05112 JSW. 
 f. “Class Counsel” means (i) Schneider Wallace Cottrell Brayton Konecky LLP and (ii) Berger & Montague, P.C. 
 g. “Class Notice” means the Notice of Proposed Class Action Settlement to be sent to the Settlement Class, pursuant to the terms of the Court’s Preliminary Approval Order. The Class Notice
shall be substantially in the form that is attached as Exhibit A to this Settlement Agreement. 
 h. “Defendant” means
U.S. Remodelers, Inc. 
 i. “Effective Date” means the later of (a) the date of entry of the order granting final
approval of this Settlement Agreement by the trial court, if no objections are timely filed, (b) the date on which the time for all appeals from objections to the Settlement Agreement has passed, if one or more objections to the Settlement
Agreement is/are filed but no appeal is taken, and (c) if an appeal is taken, the date on which any reviewing court issues a decision and the time for further appeal has expired. 
 j. “Eligible Class Member” means all Settlement Class Members who do not exclude themselves by opting out from the settlement and
who timely submit a valid Claim Form. 
 k. “Gross Settlement Amount” means the total amount of funds the Defendant
shall pay in exchange for the release of all Settled Claims and Claims Released. The Gross Settlement Amount shall be the sum of $1,800,000. In no event shall Defendant be required to pay anything more than the Gross Settlement Amount, plus
Defendant’s share of FICA and FUTA payroll taxes on the amounts paid to Eligible Class Members to the extent required by law. Upon a diligent and good faith review of its payroll records, Defendant has determined that as of January 13,
2010 there are 269 individuals in the Settlement Class. The mediation and settlement of this case is based on that figure plus any additional Settlement Class Members who may be hired between the time of the execution of this Settlement Agreement
and the date the Court preliminarily approves this Settlement Agreement. If additional Settlement Class Members are

  

 3 

 
discovered after the date of execution of this Settlement Agreement, and such number exceeds ten percent (10%) of the class initially produced then the Gross Settlement Amount shall be
increased pro rata, based on the number of weeks worked by the additional Settlement Class Members. 
 l.
“Implementation Schedule” means the dates agreed upon by counsel for the Parties and approved by the Court for implementing the Settlement Agreement. The Implementation Schedule is attached hereto as Exhibit C. 
 m. “Net Settlement Amount” means the Gross Settlement Amount less (i) $20,000 set aside for enhancement payments to Matthew
Ozga and Boris Moshkovich ($10,000 each) for their efforts in prosecuting this matter; (ii) the payment of attorneys’ fees to Class Counsel, not to exceed one-third of the Gross Settlement Amount; (iii) $11,082.28 in Class
Counsel’s costs of suit; (iv) an amount not to exceed $15,000 for the Claims Administrator’s estimated costs of the settlement administration; and (v) $50,000 set aside for payment of any agreed and allowed late claims or
unanticipated expenses. 
 n. “Parties” means Matthew Ozga and Defendant U.S. Remodelers, Inc. 
 o. “Released Party” or “Released Parties” means (i) Defendant; (ii) past or present subsidiaries, divisions,
affiliates, DBA’s, parents, predecessors, successors or assigns of Defendant; and (iii) any past or present officers, agents, employees, advisors, insurers, attorneys, or representatives of Defendant. 
 p. “Settled Claims,” with respect to the Settlement Class Members, excluding Matthew Ozga and Boris Moshkovich, means any and all
claims asserted or that could have been asserted by or on behalf of Settlement Class Members based on the allegations contained in the Complaint in Ozga v. U.S. Remodelers, Inc., United States District Court for the Northern District of
California Case No. 3:09-cv-05112 JSW, including but not limited to, any claims (including penalties recoverable by individuals or Class Members) arising from, based in, due or related to the amount, calculation or payment of wages and/or
commission and/or piece rate, the timing and/or manner of payment of wages and/or commissions and/or piece rate, for the failure to pay wages timely, the payment or nonpayment of overtime, double time, any claimed deductions, any meal and/or rest
period claims and/or any other wages, the reimbursement or failure to reimburse

  

 4 

 
for mileage or other expenses (including tools, equipment, supplies or miles), itemized wage statements, and/or claims for unfair and/or unlawful business practice based any of the allegations
relating to the claims enumerated in this definition, whether known or unknown, against the Released Party by or on behalf of such Settlement Class Members or successors or assigns of any of them (whether directly, indirectly, representatively,
derivatively or in any other capacity), accruing any time prior to the entry of the Preliminary Approval Order. 
 q.
“Settlement Agreement” means this Agreement and all Exhibits attached to it. 
 r. “Settlement Award” means
the gross payment that each Settlement Class Member shall be entitled to receive pursuant to the terms of the Settlement Agreement if he or she timely submits a valid Claim Form signed under penalty of perjury. 
 s. “Settlement Class” and “Settlement Class Member” mean any individual who was employed by U.S. Remodelers in the State
of California in the position/job classification of “Installer,” including trainees and/or apprentices for that position, at any time between February 17, 2005 and the date of the Preliminary Approval of this Settlement by the Court,
with the exception of any individuals who choose to be excluded from participating in the settlement by timely opting out as provided in this Agreement and Class Notice attached hereto as Exhibit A. 
 t. “Settlement Fairness Hearing” means the hearing to be requested by the Parties and conducted by the Court, following
appropriate notice to the Settlement Class and an opportunity for Settlement Class Members to participate in or exclude themselves from the Settlement Class and the proposed settlement, at which time the Parties will request the Court to approve the
fairness, reasonableness and adequacy of the terms and conditions of the proposed settlement and this Settlement Agreement and to enter an Order of Final Approval and Final Judgment. 
 II. RECITALS 
 3. Plaintiff Ozga filed his
class-action Complaint in the Superior Court of California for the County of Alameda on February 17, 2009. 
  

 5 

 4. On October 1, 2009, the Parties participated in mediation in San Francisco,
California before Michael Loeb, an experienced mediator with JAMS. After the conclusion of the mediation, the Parties continued their negotiations with the assistance of the mediator and eventually reached a settlement, subject to Court approval.

 5. Class Counsel and Counsel for Defendant have engaged in extensive mediation-related discovery, including exchanging
hundreds of pages of policy documents regarding the claims at issue, and time and pay records for the entire class. Class Counsel also interviewed dozens of Settlement Class Members regarding their work experiences at U.S. Remodelers, Inc. in
California. Class Counsel made a thorough study of the legal principles applicable to the claims asserted against Defendant. 
 6. Based upon Class Counsel’s discovery, investigation, legal evaluation and taking into account the sharply contested legal and factual issues involved, an assessment of the uncertainties of complex litigation and the relative
benefits conferred upon the Settlement Class pursuant to this Settlement Agreement, and the current financial condition of Defendant, Class Counsel have concluded that a settlement with Defendant on the terms set forth in this Settlement Agreement
is fair, reasonable, adequate and in the best interests of the Settlement Class. 
 7. Defendant has asserted defenses to the
claims alleged in the Class Action and expressly denies each of the claims asserted against Defendant and any and all liability arising out of the conduct alleged in the Class Action. Defendant contends, specifically, that it has complied at all
times with the California Labor Code, the California Code of Regulations, including applicable Wage Orders, and the California Business and Professions Code, and that it paid Matthew Ozga, Boris Moshkovich and Settlement Class Members all wages and
other payments owing to them under applicable law. Defendant nevertheless desires to settle the Class Action. Defendant has concluded that further defense of the Class Action would be protracted and expensive. Substantial amounts of time, energy and
resources of Defendant and their attorneys have been and, unless this settlement is made, will continue to be devoted to the defense of the claims asserted in the Class Action. Defendant has, therefore, agreed to settle in the manner and upon the
terms set forth in this Settlement Agreement in order to put to rest the claims as set forth in the Class Action. 
  

 6 

 8. For purposes of settling this lawsuit, the Parties stipulate and agree that the
requisites for establishing class certification with respect to the Settlement Class Members as defined above have been and are met. 
 III. THE CLASS AND COLLECTIVE ACTION DEFINITIONS 
 9. Class Definition. For settlement purposes
only, the Parties agree that the class may be certified in the Class Action, pursuant to Rule 23 of the Federal Rules of Civil Procedure, defined as: “All individuals who are currently employed, or formerly have been employed, by
Defendant as non-exempt Installers, including trainees and/or apprentices for that position, in California at any time between February 17, 2005 and the date of preliminary approval of this Settlement Agreement.” 
 IV. RELEASES 
 10. Release by Matthew Ozga, Boris Moshkovich and Settlement Class Members. It is hereby agreed, by and between Matthew Ozga, Boris Moshkovich, and Settlement Class Members, acting through representative plaintiff Matthew Ozga and
Class Counsel, and Defendant, through their respective counsel of record, and subject to the approval of the Court, in consideration of the benefits inuring to the Parties hereto, and without admission of any liability or wrongdoing whatsoever by
Defendant, that upon entry of the Order and Final Judgment: 
 a. Matthew Ozga and Boris Moshkovich shall be deemed to have
released and discharged the Released Parties from any and all Claims Released, whether known or unknown. 
 Matthew Ozga and
Boris Moshkovich additionally expressly waive any and all rights they have under Section 1542 of the Civil Code of the State of California, 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 MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Notwithstanding the provisions of Section 1542, and for the purpose of implementing a
complete release and discharge, Matthew Ozga and Boris Moshkovich expressly acknowledge that this Settlement Agreement is intended to include in its effect, without limitation, claims and causes of action which they do not know of or suspect to
exist in their favor at the time of execution hereof and that this agreement contemplates the extinguishment of all such claims and causes of action. 
  

 7 

 b. Each Settlement Class Member shall be bound by all terms of the Settlement Agreement and
Order Finally Approving Settlement Agreement and Final Judgment and shall be deemed to have jointly and severally discharged the Released Parties from any and all Settled Claims, whether known or unknown, accruing any time prior to the date of
preliminary approval of the Settlement Agreement, unless he or she timely opts out of the Settlement Agreement. 
 With respect
to the Settled Claims, as defined in paragraph 2(p), Settlement Class Members expressly waive any and all rights they have under Section 1542 of the Civil Code of the State of California, 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 MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 
 Notwithstanding the provisions
of Section 1542, and for the purpose of implementing a complete release and discharge of the Settled Claims, as defined in paragraph 2(p), Settlement Class Members expressly acknowledge that this Settlement Agreement is intended to include in
its effect, without limitation, Settled Claims, as defined in paragraph 2(p), which they do not know of or suspect to exist in their favor at the time of execution hereof and that this agreement contemplates the extinguishment of all such claims.

 V. CLASS NOTICE, CLAIMS PROCESS AND SETTLEMENT FAIRNESS HEARING 
 11. Procedures. As part of this Settlement Agreement, the Parties agree to the following procedures for requesting the Court’s
preliminary approval of the Settlement Agreement, certifying the Settlement Class, notifying the Settlement Class, requesting final Court approval of the Settlement Agreement and processing the Settlement Awards: 
 12. Preliminary Approval Hearing Date. The Parties will promptly file with the Court a Joint Motion for Preliminary Approval of
Settlement and Provisional Certification of a Settlement Class and shall appear for a hearing if the Court so orders. 
  

 8 

 13. Submission of Settlement Agreement. The Parties will jointly submit this
Settlement Agreement and supporting exhibits, which shall set forth the terms of this settlement and will include proposed forms of all notices and other documents as attached hereto necessary to implement the Settlement Agreement. 
 14. Request for Preliminary Approval Order. Solely for purposes of this Settlement Agreement, the Parties will request the Court to
enter a Preliminary Approval Order, preliminarily approving the proposed settlement, certifying the Settlement Class for settlement purposes only, and setting a date for the Settlement Fairness Hearing. The Preliminary Approval Order shall provide
for notice of the Settlement Agreement and related matters to be sent to the Settlement Class as specified herein. 
 15.
Class Notice. Notice of the settlement shall be provided to the Settlement Class. The Parties believe and agree that the proposed procedures for notice provide the best practicable notice to the Settlement Class: 
 a. The Claims Administrator shall be responsible for preparing, printing and mailing to all Settlement Class Members the Class Notice and
Claim Form attached to this Settlement Agreement as directed by the Court. 
 b. No later than the date specified in the
Implementation Schedule, Defendant shall provide to the Claims Administrator the last-known addresses, telephone numbers, and social security numbers of the Settlement Class Members. 
 c. In order to provide the best notice practicable, the Claims Administrator will do the following before mailing the Class Notice and Claim
Form: (1) run this class list through the United States Postal Service’s National Change of Address database (“NCOA”) and (2) perform address searches using public and proprietary electronic resources which collect their
data from various sources such as utility records, property tax records, motor vehicle registration records (where allowed) and credit bureaus. 
 d. No later than the date specified in the Implementation Schedule, the Claims Administrator shall send a copy of the Class Notice substantially in the form attached hereto as Exhibit A, and a Claim Form
substantially in the form attached hereto as Exhibit B, to all members of the Settlement Class via first-class mail, postage prepaid, using the most current mailing address information available as set forth above. 
  

 9 

 e. Any Class Notice returned to the Claims Administrator as non-delivered before the
deadline set forth in the Implementation Schedule for Class Members to mail Claim Forms shall be sent to the forwarding address affixed thereto. If no forwarding address is provided for a Class Notice that is returned as non-delivered, then such
Class Notices will be re-sent by the Claims Administrator after the address is updated using reasonable efforts. The undelivered Class Notices will be re-sent within five days after the Claims Administrator receives notice that the Class Notice was
undeliverable. The Claims Administrator shall also call last-known telephone numbers (and telephone numbers updated through public and proprietary databases) of Settlement Class Members whose Class Notice is returned as non-delivered to attempt to
obtain their current addresses. For a period not to exceed 45 days from the date specified in the Implementation Schedule for the initial mailing of the Class Notice and Claim Form, the Claims Administrator will continue to use reasonable efforts to
obtain current addresses for Settlement Class Members whose Class Notice and Claim Form are returned as non-deliverable, and Claim Forms received within said 45-day period shall be deemed timely. 
 f. The objection deadline shall not be extended pro-rata for members of the Settlement Class whose original notices are re-mailed
pursuant to Paragraph 15(e). 
 g. The Claims Administrator shall send a reminder postcard, based on the language of the Class
Notice, to all Settlement Class Members who have not submitted Claim Forms, Notices of Objection, or Requests for Exclusion on or about 21 days after the mailing of the notice. 
 h. No Settlement Class Member shall have the right to obtain any payment through this Settlement Agreement unless the Class Member submits a
completed Claim Form, signed under penalty of perjury, on or before the deadline set forth in the Implementation Schedule, except that the Claims Administrator shall make use of the $50,000 held back from the Gross Settlement Amount to pay
Settlement Awards to Settlement Class Members who submit a Claim Form containing all the necessary information within six months of the date of Final

  

 10 

 
Approval of the Settlement Agreement. In addition, the Claims Administrator, upon agreement by all counsel, may determine that there is good cause to extend the date for mailing a particular
Claim Form, or the Court may find good cause to extend the date for mailing a particular Claim Form, or the Parties may agree that there is good cause to extend the date for mailing a particular Claim Form 
 16. Requests for Exclusion. The Class Notice shall provide that Settlement Class Members who wish to exclude themselves from the
settlement must submit a written statement requesting exclusion from the settlement (“opt-out”), postmarked on or before 30 days from the mailing of the Class Notice. Such written request for exclusion must contain the name, address and
telephone number of the person requesting exclusion and the dates of his or her employment by Defendant. The opt-out must be personally signed by the Settlement Class Member who seeks to opt out. No opt-out request may be made on behalf of a group
of Settlement Class Members. The opt-out request must be sent by mail to the Claims Administrator and must be timely postmarked as set forth above, except that the Claims Administrator may, upon consultation with counsel for all Parties and good
cause shown, extend the due date for mailing the opt-out request. The postmark date of the mailing envelope shall be the exclusive means used to determine whether a request for exclusion (opt-out) has been timely submitted. Any Settlement Class
Member who requests exclusion (opts out) of the settlement will not be entitled to any Settlement Award and will not be bound by the Settlement Agreement or have any right to object, appeal or comment thereon. Good cause shall be deemed to be either
a failure to receive timely notice or any physical, psychological or other incapacity that prevents the Settlement Class Member from exercising their rights contained in this agreement. The Claims Administrator shall request written proof of good
cause from any Settlement Class Member wishing to extend a deadline contained herein, including requests for exclusion, objections, or participation in the settlement. 
 17. Objections. The Class Notice shall provide that those members of the Settlement Class who wish to object to the settlement must mail a written statement of objection on or before the date set
forth in the Implementation Schedule to the Claims Administrator. The postmark date of the mailing shall be the exclusive means for determining that a Notice of Objection is timely.

  

 11 

 
The Notice of Objection must state the basis for the objection. Members of the Settlement Class who fail to make objections in the manner specified above shall be deemed to have waived any
objections and shall be foreclosed from making any objection (whether by appeal or otherwise) to the Settlement Agreement, and shall not be allowed to speak at the final approval hearing. In the event that an individual submits a request for
exclusion and an objection and/or Claim Form, the Claims Administrator will use reasonable efforts to contact the individual via telephone and/or U.S. Mail to determine whether they want to opt out of the settlement or participate in the settlement.
If the Claims Administrator is unable to contact the individual and obtain a resolution by the time for an individual to file a Claim Form, object or opt-out, the individual will be deemed to have elected to participate in the settlement and shall
become a Settlement Class Member. A Settlement Class Member who files an Objection under this paragraph must still file a Claim Form to participate in the settlement and obtain a Settlement Award. 
 18. No Encouragement of Objections or Appeals. At no time shall any of the Parties, Boris Moshkovich, or their counsel seek to
solicit or otherwise encourage members of the Settlement Class to submit written objections to the settlement or appeal from the Order and Final Judgment. 
 19. Determination of Settlement Award Eligibility. 
 a. Submission of
Valid Claim Form and Provision for Payment of Late Claims. All Settlement Class Members who submit a valid and timely Claim Form will be eligible to receive a Settlement Award. A Claim Form will be considered timely if it is postmarked no later
than 45 days after the date upon which the Class Notice and Claim Form are mailed to Settlement Class Members. In addition, the Claims Administrator shall use the $50,000 held back from the Gross Settlement Amount to pay Settlement Awards to
Settlement Class Members who submit Claim Forms within six months after Final Approval of the Settlement Agreement is granted, containing all the necessary information to render it valid but for the tardiness. Payment of said late claims will
continue until that $50,000 amount is exhausted. Any costs related to payment of late claims shall come from the same $50,000 held back, unless the cost has already been included in the fee charged by the Claims Administrator to process this
Settlement Agreement. In no event

  

 12 

 
shall such late claims be deemed to create any additional obligations for further funds from anyone. The Claim Form shall include instructions on how to submit the form, and shall notify
recipients that the form must be completed, signed under penalty of perjury and postmarked by no later than the date specified in the Implementation Schedule. The Claim Form shall also include the number of weeks worked by the Settlement Class
Member and the estimated Settlement Award to be paid to the Settlement Class Member, which shall be based upon the current estimated Net Settlement Amount as set forth in Paragraph 2(m) above, and which may be different in the final calculation.

 b. Late Claim Forms. Claim Forms submitted by Settlement Class Members which are postmarked subsequent to the cut-off
date set forth to submit a valid Claim Form shall be forwarded by the Claims Administrator to Class Counsel and Defendant’s counsel. The Claim Form shall be deemed valid as a late claim by the Claims Administrator if the Claim Form contains all
of the necessary information for a valid claim, unless either Party objects to its validity within ten (10) days of being served with a copy of the Claim Form by the Claims Administrator. If one party objects and the other party disagrees with
the reason for the objections, the Parties shall engage the Dispute Resolution procedures contained in this Agreement. These claims shall be deemed valid only to the extent that they will be paid from the $50,000 fund set aside to pay claims.
Defendant shall pay the employer’s share of payroll taxes as set forth in paragraph 26(d) in the event that a late claim meets the “good cause” standard set out in paragraph 16. If the late claim does not meet the good cause standard
set out in paragraph 16, the employer’s share of payroll taxes shall be taken from the $50,000 set aside to pay the late claims. 
 20. Interim Report by the Claims Administrator. No later than seven (7) days prior to the date of the Settlement Fairness Hearing, the Claims Administrator shall provide counsel for the Parties with a declaration setting forth:
(a) due diligence and proof of mailing of the Class Notice; (b) the total number of Settlement Class Members who were sent the Class Notice; and (c) the total number of Settlement Class Members who filed timely requests for exclusion
or objections to the settlement, along with the complete copies of all requests for exclusion and objections received, including the postmark dates for each request for exclusion or objection. 
  

 13 

 21. Settlement Fairness Hearing. At a reasonable time after the Court has
preliminarily approved the Settlement Agreement but no earlier than 101 days after the filing of the motion requesting preliminary approval of the Settlement Agreement to provide CAFA Notice, the Court shall conduct a Settlement Fairness Hearing to
determine final approval of the settlement along with the amounts properly payable for (i) attorneys’ fees and costs; (ii) the payments to Matthew Ozga and Boris Moshkovich for their time and effort in prosecuting this matter,
(iii) the costs of administration of the settlement, and (iv) the amount withheld from the settlement amount for the payment of late claims or unanticipated expenses. Upon final approval of the settlement by the Court at or after the
Settlement Fairness Hearing, the Parties shall present the Final Order to the Court for its approval and entry and dismiss the case with prejudice. After entry of the Order, the Court shall have continuing jurisdiction for purposes of addressing
(i) settlement administration matters; and (ii) such post-Final Order matters as may be appropriate under Court rules or as set forth in this Settlement Agreement. 
 22. Implementation Schedule. The Implementation Schedule shall govern implementation of the Settlement Agreement, and that the dates
set forth in the Implementation Schedule shall only be continued based on (1) the mutual consent of counsel for the Parties, (2) delays due to the Court’s schedule, or (3) by Order of the Court. 
 VI. SETTLEMENT FUNDS AND SETTLEMENT AWARD CALCULATION 
 23. Gross Settlement Amount. 
 a. Deposit. Immediately upon receiving a fully executed Settlement Agreement or as soon after as the Claims Administrator is able to set up the Qualified Settlement Fund and communicates the
necessary information to Defense Counsel, Defendant shall deliver $500,000 to the Claims Administrator, which the Claims Administrator will immediately deposit into a Qualified Settlement Fund pursuant to Internal Revenue Code Section 1.468B-1.
As soon as the Qualified Settlement Fund is established, Defendant shall execute an election statement provided by the Claims Administrator which shall be affixed to the initial tax return of the Qualified Settlement Fund in order to establish the
start date of the Qualified Settlement Fund. Defendant shall have the right to any interest earned by the initial $500,000 deposit from the date of deposit to

  

 14 

 
the Effective Date of the Settlement or to use such interest to offset against the remaining $1,300,000. Within five (5) business days of Effective Date and subject to the conditions
specified in this Settlement Agreement, Defendant shall deliver $1,300,000 to the Claims Administrator, to complete the payment of the Gross Settlement Amount of $1,800,000. Upon receipt of the $1,300,000, the Claims Administrator immediately shall
transfer the Gross Settlement Amount into the Qualified Settlement Fund. No party shall have any further obligation or liability for any payment under this Agreement to Matthew Ozga, Boris Moshkovich or to the Eligible Class Members. 
 b. Disbursement by Claims Administrator. All disbursements shall be made from the Qualified Settlement Fund account. The Claims
Administrator shall be the only entity authorized to make withdrawals or payments from the Qualified Settlement Fund Account, and disbursements shall only be made after the Parties have been provided and approved a report of all payments to be made.
The Claims Administrator shall have the obligation to return the entire Qualified Settlement Fund (including all income and/or interest generated by the Qualified Settlement Fund) in its pro rata shares to Defendant at Defendant’s election,
less any amount for payment for work done by the Claims Administrator, in the event of failure or revocation of settlement, as defined in Paragraphs 31 or 32, or in the event that this Settlement Agreement: (i) does not receive final approval
of the Court; (ii) is modified or reversed on appeal; or (iii) is otherwise rendered null and void. 
 c.
Interest. The interest on the funds deposited by Defendant will inure pro rata to the party to whom the underlying funds are ultimately paid out, subject to the conditions of 23(a), above. 
 24. Order of Payments. Within five business days after Final Approval, and before any Settlement Awards are paid to Eligible Class
Members who timely submit valid Claim Forms, the Claims Administrator shall make payments from the Qualified Settlement Fund pursuant to Paragraph 25 below for (a) the enhancement payment to Matthew Ozga and Boris Moshkovich for their efforts
in prosecuting this matter; (b) the attorneys’ fees and costs to Class Counsel awarded by the Court; (c) the costs of administration of this settlement by the Claims Administrator; and (d)

  

 15 

 
the amount to be set aside for any agreed or allowed late claims or unanticipated expenses. Once the payments designated above have been made, the balance remaining shall constitute the Net
Settlement Amount from which Settlement Awards shall be calculated. 
 25. Matthew Ozga and Boris Moshkovich, Class Counsel,
Costs of Administration, and Hold-Back Fund. Subject to Court approval and for purposes of effectuating this Settlement Agreement, the following amounts shall be paid by the Claims Administrator from the Gross Settlement Amount: 
 a. Enhancement Payment for Matthew Ozga and Boris Moshkovich. Subject to Court approval and in exchange for the release of all Claims
Released, an enhancement fund in the amount of $20,000 will be paid to Matthew Ozga and Boris Moshkovich ($10,000 each) for their efforts in prosecuting this matter. The Qualified Settlement Fund shall issue a Form 1099 for these payments.

 b. Class Counsel. 
 (i) The reasonable attorneys’ fees requested by Class Counsel shall not exceed one-third of the Gross Settlement Amount, or $600,000. These amounts will compensate Class Counsel for work already
performed in this case and all of the work remaining to be performed in this case, including but not limited to documenting the Settlement Agreement, securing Court approval of the Settlement Agreement, making sure that the Settlement Agreement is
fairly administered and implemented and obtaining dismissal of the action. Said fees and costs are included in the Gross Settlement Amount. 
 (ii) Defendant and its attorneys agree not to oppose any application or motion by Class Counsel for attorneys’ fees and costs up to those amounts, so long as any such application or motion is
consistent with the provisions of this Settlement Agreement, and Class Counsel agrees not to petition the Court for any additional payments for fees, costs or interest. 
 (iii) The Claims Administrator shall pay the attorneys’ fees and costs set forth above from the Qualified Settlement Fund on the fifth business day following the Effective Date. 
  

 16 

 (iv) The attorneys’ fees and costs approved by the Court shall constitute full
satisfaction of Defendant’s obligations to pay amounts to any person, attorney or law firm for attorneys’ fees, expenses or costs in the Class Action incurred on behalf of Matthew Ozga, Boris Moshkovich and/or the Settlement Class, and
shall relieve Defendant from any other claims or liability to any other attorney or law firm for any attorneys’ fees, expenses and/or costs to which any of them may claim to be entitled to on behalf of Matthew Ozga, Boris Moshkovich and/or the
Settlement Class. Class Counsel further agrees that any allocation of fees between or among Class Counsel and any other attorney representing Matthew Ozga or Boris Moshkovich and/or the Settlement Class shall be the sole responsibility of Class
Counsel, and Class Counsel agrees to indemnify and hold harmless Defendant from any claim or liability by any other party claiming or seeking to claim any attorneys’ fees or costs. 
 (v) A Form 1099 shall be provided to Class Counsel for the payments made to Class Counsel. Class Counsel shall be solely and legally
responsible to pay any and all applicable taxes on the payment made to Class Counsel. Class Counsel agrees to indemnify and hold harmless Defendant and the Qualified Settlement Fund from any claim or liability for taxes, penalties or interest for
which Class Counsel is responsible as a result of the payment or any allocation of the payment made to Class Counsel. 
 c.
Costs of Administration. Neither the Settlement Class nor Class Counsel shall have any responsibility or liability with respect to any administration costs incurred in connection with the administration of, and the distribution from, the Net
Settlement Amount. All fees, costs, expenses and other claims administration by the Claims Administrator shall be paid from the Gross Settlement Amount as set forth in this Settlement Agreement. The Claims Administrator shall, no later than ten
(10) days after the Parties file their Joint Motion for Preliminary Approval of Settlement, provide the Court and counsel for the Parties with an estimate of such costs of administration, which at this time are not expected to exceed $15,000.
Seven (7) days prior to the Settlement Fairness Hearing, the Claims Administrator shall provide the Court and counsel for the Parties with a statement detailing the costs of administration. The Parties agree to cooperate in the settlement
administration process and to make all reasonable efforts to control and minimize the costs and expenses incurred in the administration of the settlement. 
  

 17 

 d. In order to ensure the proper administration of this Settlement Agreement, the $50,000
hold back amount shall be allocated from the Gross Settlement Amount for payment of any agreed and allowed late claims or unanticipated expenses, as provided in paragraph 19. In the event this amount is not exhausted by the payment of late claims
and unanticipated expenses, the unexhausted amount will be donated to the Legal Aid Society – Employment Law Center (as cy pres recipient). 
 e. The rulings of the Court relating to Class Counsel’s fees, costs, or enhancement payments, which the Court exercises under its own discretion, shall not affect the validity of the underlying
settlement. 
 26. Settlement Awards to Eligible Class Members. Solely for purposes of effectuating this Settlement
Agreement and in exchange for the release of Settled Claims, an Eligible Class Member who submits a timely and properly completed Claim Form (as set forth in the attached Exhibit B) to the Claims Administrator shall be paid a Settlement Award from
the Net Settlement Amount. The Claims Administrator, subject to Court approval, shall be responsible for receiving and reviewing the Claim Forms submitted by members of the Settlement Classes and for determining eligibility for, and the amount of,
the Settlement Awards to be paid to Eligible Class Members. The Claims Administrator will receive or have access to personnel and payroll records from Defendant that will permit it to verify each Eligible Class Member’s Settlement Award as
follows: 
 a. The Claims Administrator will verify the number of weeks worked by each Settlement Class Member between
February 17, 2005 and the date of preliminary approval of this Settlement Agreement. 
 b. The Claims Administrator will
calculate an award for each Eligible Class Member as follows: each Eligible Class Member’s weeks worked between February 17, 2005 and the date on which the Court grants preliminary approval will be divided by the total number of weeks
worked by all Eligible Class Members between February 17, 2005 and the date on which

  

 18 

 
the Court grants preliminary approval, to obtain each Eligible Class Member’s “settlement share.” This “settlement share” will then be multiplied by the Net Settlement
Amount available for settlement awards to determine each Eligible Class Member’s Settlement Award. For example, if Eligible Class Member Sally Garcia worked 10 weeks, and the Eligible Class Members as a whole worked 1,000 weeks, then
Ms. Garcia’s “settlement share” would be .01. If the net settlement amount is $100,000, then Ms. Garcia’s Settlement Award would be .01 multiplied by $100,000, or $1,000. Settlement Awards for Eligible Class Members who
submit valid but untimely Claim Forms will be calculated using the same calculation as above. 
 c. Settlement Awards shall be
paid to Eligible Class Members no later than the date specified in the Implementation Schedule. 
 d. All parties agree that 30%
of each Settlement Award shall be treated as back wages paid by Defendant to each Eligible Class Member. Accordingly, on each Settlement Award, the Claims Administrator shall effectuate federal and applicable state income and employment tax
withholding as required by law with respect to 30% of each Settlement Award distributed, and Defendant shall pay its share of the employer’s portion of all required FICA and FUTA taxes on such amounts. Defendant shall pay these taxes,
which amount shall be deposited into the Qualified Settlement Fund after the Settlement Awards are mailed to Eligible Class Members on the date specified in the Implementation Schedule, in addition to the $1,800,000 constituting the Gross Settlement
Amount. Amounts withheld will be remitted by the Claims Administrator from the Qualified Settlement Fund to the appropriate governmental authorities. In addition, the Parties agree that 30% of the Settlement Award will be treated as refunds for
mileage and expense reimbursement. The remaining 40% of each such Settlement Award shall be treated by all Parties as non-wage penalties or other non-wage damages, to be reported, along with the 30% mileage and expense reimbursement, to the Eligible
Class Member on an IRS Form 1099, and shall not be subject to FICA and FUTA withholding taxes. Defendant shall cooperate with the Claims Administrator to provide payroll tax information to the Claims Administrator as shall be necessary to
accomplish the income and employment tax withholding on the wage portion of each Settlement Award, and the Form 1099 reporting for the non-wage portion of each Settlement Award. 
  

 19 

 e. All eligibility and Settlement Award determinations shall be based on personnel and
payroll records that Defendant will make available as needed to the Claims Administrator. There is a rebuttable presumption that Defendant’s personnel and payroll records are correct, but Eligible Class Members will have the opportunity, should
they disagree with Defendant’s records, to provide documentation and/or an explanation to show contrary employment dates. Each Claim Form will contain the number of weeks worked by the Settlement Class Member to whom it is sent, and an
estimated Settlement Award based upon 100% participation in the settlement. If there is a dispute or contrary evidence, the Claims Administrator shall evaluate and make a determination based on all the information provided. Prior to rejecting a
Settlement Class Member’s documentation or explanation of disagreement, the Claims Administrator shall provide notice of the issue to Class Counsel and Defendant’s counsel and at least five (5) business days for them to propose an
amicable resolution of the issue through meet and confer. The Claims Administrator’s decision regarding the weeks worked will be final. The Claims Administrator will notify the Settlement Class Member, Class Counsel and Defendant’s counsel
by mail of its decision. 
 f. The Parties may seek review of a determination of the Claims Administrator or other dispute
regarding the interpretation or implementation of the Settlement Agreement by the Court after the Parties confer in good faith in an effort to resolve any disagreement. Matters shall be brought to the Court’s attention in the form of a joint
letter brief not to exceed 10 single-spaced pages. The Court may order discovery necessary to resolve the disagreement for good cause shown. 
 g. The Claims Administrator shall pay all Settlement Awards no later than the date specified in the Implementation Schedule. 
 h. All checks for Settlement Awards shall remain valid and negotiable for 365 days from the date of their issuance and may thereafter automatically be canceled if not cashed by an Eligible Class Member
within that time, at which time the Eligible Class Member’s right to

  

 20 

 
recover any Settlement Award will be deemed void and of no further force and effect. All funds from checks not cashed shall be distributed to the Legal Aid Society – Employment Law Center as
a cy pres recipient. The Claims Administrator will include with the checks a letter stating that the check must be cashed or deposited within 365 days or it will be cancelled, unless the information can be included in the face or back of the
check. 
 i. The aggregate amount of the Settlement Awards to Eligible Class Members shall not under any circumstances exceed
the Net Settlement Amount. Other than to Matthew Ozga and Boris Moshkovich as set forth herein, Defendant shall have no obligation to pay any amounts to Eligible Class Members in excess of approved claims for Settlement Awards as calculated in
accordance with this Settlement Agreement. 
 27. Completion of and Report on Settlement Administration. The Claims
Administrator shall keep counsel for the Parties apprised of all distributions from the Net Settlement Amount. Administration of the settlement shall be completed on or before the date specified in the Implementation Schedule. Upon completion of
administration of the settlement, the Claims Administrator shall provide written certification of such completion and provide proof of payment to the Court and counsel for the Parties. The Claims Administrator also shall furnish counsel for the
Parties with a report showing the names, amounts and dates of each payment. 
 28. Date of Distribution. In no event
shall there be any distribution from the Net Settlement Amount to Matthew Ozga, Boris Moshkovich or any Eligible Class Member until after the Effective Date. 
 29. No Claim Based Upon Distributions or Payments in Accordance with this Settlement Agreement. No person shall have any claim against Defendant or any of the Released Parties, Matthew Ozga and
Boris Moshkovich, the Settlement Class, Class Counsel or the Claims Administrator based on distributions or payments made in accordance with this Settlement Agreement. 
  

 21 

 VII. DISPUTE RESOLUTION 
 30. Except as otherwise set forth herein, all disputes concerning the interpretation, calculation or payment of settlement claims, or other
disputes regarding compliance with this Settlement Agreement shall be resolved as follows: 
 a. If either party at any time
believes that the other party has breached or acted contrary to the Settlement Agreement, that party shall notify the other party in writing of the alleged violation. 
 b. Upon receiving notice of the alleged violation or dispute, the responding party shall have ten (10) days to correct the alleged violation and/or respond to the initiating party with the reasons
why the party disputes all or part of the allegation. 
 c. If the response does not address the alleged violation to the
initiating party’s satisfaction, the Parties shall negotiate in good faith for up to ten (10) days to resolve their differences. 
 d. If the Parties are unable to resolve their differences after twenty (20) days, either party may file an appropriate motion for enforcement with the Court. The briefing of such motion should be in
letter brief form and shall not exceed five (5) single-spaced pages (excluding exhibits). 
 VII. FAILURE OF
SETTLEMENT; RIGHT TO WITHDRAW PROVISION; 
 APPELLATE REVIEW 
 31. Effect of Revocation or Failure of Settlement. In the event that the settlement does not become final for any reason, this
Settlement Agreement shall be null and void and any order entered by the Court in furtherance of this settlement shall be treated as void ab initio. In such a case, the Parties shall return to the status quo as if the Parties had not entered
into this Settlement Agreement and all orders, documents, negotiations, shall be treated as null, void and of no force or effect and cannot be used to the detriment or prejudice of any party. Furthermore, all evidence relating to the Settlement
Agreement and all negotiations shall not be admissible or discoverable in the Class Action or otherwise. In addition, any funds used or to be used to pay Settlement Awards, the enhancement payment to Matthew Ozga and Boris Moshkovich, and
attorneys’ fees and costs

  

 22 

 
to Class Counsel shall be returned to their respective status as of the date and time immediately prior to the execution of this Settlement Agreement, and the Parties shall proceed in all
respects as if this Settlement Agreement had not been executed. The Claims Administrator will be paid 50/50 by the Parties for its costs through the date it is notified that the settlement will not proceed. 
 32. Defendant’s Right to Withdraw from Agreement. If more than fifteen percent (15%) of the individuals who come within the
class definition contained herein choose to exclude themselves (Opt-out) from participating in the settlement contained in this Settlement Agreement, the Defendant shall have the option, notwithstanding any other provision contained in this
Settlement Agreement, at its sole discretion to withdraw from this Settlement Agreement (“Right to Withdraw”). If the Defendant exercises its Right to Withdraw, then the rights and obligations contained in paragraph 31 above will enter
into effect, except that Defendant shall be responsible for the full costs incurred to that date by the Claims Administrator. The Claims Administrator shall provide a list of the individuals who have chosen to be excluded from participating in this
settlement within ten (10) business days after the time to opt out has expired. If the Defendant elects to exercise its Right to Withdraw under this provision, Defendant shall notify Class Counsel in writing no later than fourteen
(14) business days after receipt from the Claims Administrator the list of the individuals who opt out of the settlement. 
 33. Impact of Appellate Review. In the event an appeal is filed from any of the Court’s Orders, or any other appellate review is sought prior to the Effective Date, administration of the settlement shall be stayed pending final
resolution of the appeal or other appellate review, except that the Claims Administrator will be paid by party who files the appeal for its costs through the date it is notified that the settlement has been stayed by appellate review. If both
Parties appeal, the cost will be shared equally. 
 IX. MISCELLANEOUS 
 34. The Parties agree to diligently prepare and execute this Settlement Agreement and the Motion for Preliminary Approval of Settlement.

  

 23 

 35. Various Proceedings Stayed. The Parties agree to hold all proceedings in the
Class Action, except such proceedings as may be necessary to implement and complete the Settlement Agreement, in abeyance pending the Settlement Fairness Hearing to be conducted by the Court. 
 36. Defense Fees and Costs. Defendant’s own attorneys’ fees and legal costs and expenses incurred in the Class Action shall
be borne by that Defendant from Defendant’s separate funds and not from the Gross Settlement Amount. 
 37. Amendment or
Waiver Only in Writing. This Settlement Agreement may be amended or modified only by a written instrument signed by counsel for all Parties or their successors-in-interest. No rights hereunder may be waived except in writing. 
 38. Entire Agreement. This Settlement Agreement and any attached Exhibits constitute the entire agreement between the Parties
relating to the Settlement and transaction contemplated thereby. All prior or contemporaneous agreements, understandings and statements, whether oral or written, and whether by a party or its counsel, are merged herein. No oral or written
representations, warranties or inducements have been made to any party concerning this Settlement Agreement or its Exhibits other than the representations, warranties and covenants contained and memorialized in such documents. 
 39. Authorization to Execute Agreement and Effectuate Settlement and Agreement to Cooperate. Counsel for all Parties warrant and
represent that they are expressly authorized by the Parties whom they represent to negotiate this Settlement Agreement and to take all appropriate action required or permitted to be taken by such Parties pursuant to this Settlement Agreement to
effectuate the terms hereof, and to execute any other documents required to effectuate the terms of this Settlement Agreement. The Parties and their respective counsel will cooperate with each other and use their best efforts to effect the
implementation of the Settlement Agreement. In the event the Parties are unable to reach agreement on the form or content of any document needed to implement the Settlement Agreement, or on any supplemental provisions that may become necessary to
effectuate the terms of this Settlement Agreement, the Parties may seek the assistance of the Court to resolve such disagreement. The person signing this Settlement Agreement on behalf of Defendant represents and warrants that he/she is authorized
to sign this Settlement Agreement on behalf of Defendant. 
  

 24 

 40. Binding Upon Successors and Assigns. This Settlement Agreement shall be binding
upon, and inure to the benefit of, the successors or assigns of the Released Parties and the Parties, as previously defined. 
 41. No Prior Assignment. The Parties hereto 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, action, cause of action or rights herein released and discharged except as set forth herein. 
 42. Governing Law. All terms of this Settlement Agreement and the Exhibits hereto shall be governed by and interpreted according to the laws of the State of California. 
 43. Counterparts. This Settlement Agreement may be executed in one or more counterparts and served by facsimile. All executed copies
of this Settlement Agreement, and photocopies thereof (including facsimile and/or emailed copies of the signature pages), shall have the same force and effect and shall be as legally binding and enforceable as the original. 
 44. Exhibits. The terms of this Settlement Agreement include the terms set forth in the attached Exhibits, which are incorporated by
this reference as though fully set forth herein. The Exhibits to this Settlement Agreement are an integral part of the Settlement Agreement. Unless specifically provided otherwise in the Exhibits to this Settlement Agreement, in the event of any
conflict between the Settlement Agreement and the Exhibits, the terms of the Settlement Agreement shall control. 
 45.
Construction. The Parties believe the terms of the settlement as set forth in this Settlement Agreement are a fair, adequate and reasonable settlement of this Class Action and have arrived at this Settlement Agreement in arms-length
negotiations and with the assistance of a professional mediator, taking into account all relevant factors, present and potential. This Settlement Agreement has been drafted jointly by counsel for the Parties. Hence, in any construction or
interpretation of this Settlement Agreement, the same shall not be construed against any of the Parties. 
  

 25 

 46. Retention of Jurisdiction. The Court shall retain jurisdiction with respect to
the interpretation, implementation and enforcement of the terms of this Settlement Agreement and all orders and judgments entered in connection therewith, and the Parties and their counsel hereto submit to the jurisdiction of the Court for purposes
of interpreting, implementing and enforcing the settlement embodied in this Agreement and all orders and judgments entered in connection therewith. 
 47. Agreement of Matthew Ozga and Boris Moshkovich. Matthew Ozga and Boris Moshkovich agree not to object to or appeal any of the terms of this Settlement Agreement. 
 48. No Signature Required by Eligible Class Members on Settlement Agreement. Because the Eligible Class Members are so numerous, it
is impossible or impractical to have each one execute this Settlement Agreement. The Class Notice and the Claim Form, Exhibits A and B hereto, will advise all Eligible Class Members of the binding nature of the release and such shall have the
same force and effect as if this Settlement Agreement were executed by each Eligible Class Member. 
 49. Titles and Captions
of No Force. Paragraph titles or captions contained herein are inserted as a matter of convenience and for reference, and in no way define, limit, extend, or describe the scope of this Settlement Agreement or any of its provisions. Each term of
this Settlement Agreement is contractual and not merely a recital. 
 50. Mutual Full Cooperation. The Parties agree to
fully cooperate with each other to accomplish the terms of this Settlement Agreement, including but not limited to, executing such documents and taking such other action as may reasonably be necessary to implement the terms of this Settlement
Agreement. 
  

 26 

 51. Invalid Without Court Approval. This Settlement Agreement is subject to approval
by the Court. In the event it is not approved, it shall be deemed null and void, of no force and effect, and of no probative value, and the Parties hereto represent, warrant, and covenant that it will not be used or referred to for any purpose
whatsoever. 
  

			
	Date: 1/19/10	 	/s/ Matthew Ozga
		 	MATTHEW OZGA,
		 	Personally and as Representative Plaintiff
		
	Date: 1/20/10	 	 SCHNEIDER WALLACE
 COTTRELL
BRAYTON
 KONECKY LLP

		
		 	BERGER & MONTAGUE, P.C.
		
		 	/s/ Hank Willson
		 	HANK WILLSON
		 	Counsel for Plaintiff and the Settlement Class
		
	Date: 1/20/10	 	U.S. REMODELERS, INC.
		
		 	/s/ Murray Gross
		 	MURRAY GROSS,
		 	CEO of U.S. Remodelers, Inc.
		
	Date: 1/20/10	 	LANDEGGER, BARON, LAVENANT & INGBER
		
		 	/s/ Oscar Rivas
		 	OSCAR RIVAS
		 	Counsel for Defendant U.S. Remodelers, Inc.

  

 27Rhombus Holding Corporation Amended and Restated 2009 Participation Plan

 Exhibit 10.11 
 RHOMBUS HOLDING CORPORATION 
 AMENDED AND RESTATED
2009 PARTICIPATION PLAN 
 1. Purpose. The purpose of the Amended and Restated 2009 Participation Plan (the
“Plan”) is to provide incentive compensation to key employees of Rhombus Holding Corporation, a Delaware corporation (the “Company”) and its subsidiaries. Such incentive compensation shall be based upon the award of Performance
Units, the value of which is related to the appreciation in the value of the Company, and shall be payable to participants upon the occurrence of certain Qualifying Events. The Plan is also intended to benefit the Company by creating incentives for
participating key employees. 
 2. Administration. The Plan shall be administered by the Compensation Committee (the
“Committee”), such committee to be appointed by the directors of the Company. Subject to the provisions of the Plan, the Committee shall have exclusive power to select the key employees to be granted Performance Units, to determine the
number of Performance Units to be granted to each key employee selected, to determine the time or times when Performance Units will be granted, and to determine the value of Performance Units at the time of grant (the “Grant Value”). The
Committee shall have sole authority to interpret the Plan, to adopt and revise rules and regulations relating to the Plan, to determine the conditions, not inconsistent with the Plan, subject to which any awards may be made or payable, and to make
any other determinations that it believes necessary or advisable for the administration of the Plan. Determinations by the Committee shall be made by majority vote and shall be made in its sole discretion and shall be final and binding on all
Participants. 
 3. Grants. Performance Units shall be granted to such key employees of the Company and its subsidiaries,
as the Committee shall determine, who shall hereafter be referred to as “Participants.” Performance Units shall be granted at such time or times and shall be subject to such terms and conditions, in addition to the terms and conditions set
forth in the Plan, as the Committee shall determine. Such additional terms and conditions shall be set forth in the Grant Agreement (the “Grant”). 
 4. Performance Units. 
 4.1 Grant of Performance Units. Performance
Units granted to a Participant shall be credited to a Performance Unit Account (the “Account”) established and maintained for such Participant. The Account of a Participant shall be the record of Performance Units granted to him under the
Plan, is solely for accounting purposes, and shall not require a segregation of any Company assets. The grant of Performance Units under the Plan and the Grant Value of such Performance Units shall be set forth in the Grant. 
 4.2 Number of Performance Units. The maximum number of Performance Units that may be awarded under the Plan is 87,500,000 (the
“Maximum Performance Units”), subject to increase pursuant to Section 4.3. 
 4.3 Increase of Performance
Units. The Maximum Performance Units may be increased by the Committee at any time, in its sole discretion: 
 4.3.1 if the Company, directly or indirectly, completes an acquisition (the “Acquisition”), in which event the number of additional Performance Units that may be issued will be equal to the product of: (x) the Maximum
Performance Units on the applicable Signing Date (hereinafter defined), times (y) the sum of (a) one plus (b) that percentage equal to: (i) the latest trailing twelve (12) calendar month EBITDA (hereinafter defined)
generated by the Acquisition in question, divided by (ii) the Company’s then latest trailing twelve (12) calendar month EBITDA (each of (i) and (ii) measured on the date the relevant acquisition agreement is executed (the
“Signing Date”)); provided, however that the Committee may elect, in lieu of using the trailing twelve (12) calendar month EBITDA figures described in this Section 4.3.1, to use instead the EBITDA figures that correspond to the
twelve (12) month period that ends upon the last day of the calendar quarter either prior to or subsequent to the Signing Date. As used in this Section 4.3.1, “EBITDA” means consolidated net income before interest, income taxes,
depreciation and amortization and before the effect of LIFO gains or expenses. 

 4.3.2 to permit the award(s) of Performance Units to employees of the
Company or its subsidiaries by an amount not to exceed thirty (30%) percent of the Maximum Performance Units. 
 5.
Maturity of Performance Units. Performance Units granted to a Participant shall mature according to the terms approved by the Committee as set forth in the Grant. 
 6. Payment for Performance Units. 
 6.1 Qualified Event Value.
Subject to the terms and conditions contained herein, upon the occurrence of a Qualifying Event (defined hereafter), each Participant shall be entitled to receive from the Company an amount, with respect to each matured Performance Unit in the
Participant’s Account, equal to: (i) the Qualified Event Value (as determined pursuant to Section 8 hereof) of each Performance Unit in the Participant’s Account as of the date of the Qualifying Event, reduced by (ii) the
Grant Value of each Performance Unit as set forth in the Grant. In the event that the Qualified Event Value of a matured Performance Unit is equal to or less than its Grant Value, there shall be no payment to a Participant in connection with such
Qualifying Event; provided, however, that the Grant Value of each matured Performance Unit in the Participant’s Account shall be reduced by such Qualified Event Value (the “Adjusted Grant Value”) and such Adjusted Grant Value shall be
used in the calculation of the Qualified Event Value of matured Performance Units upon future Qualifying Events. 
 6.2
Forfeiture. All Performance Units granted to a Participant, whether or not fully matured, will be forfeited, and the Company will have no further obligation hereunder to such Participant, if any of the following circumstances occur with
respect to such Participant as determined by the Committee in its sole discretion: 
 6.2.1 the Participant
terminates or is terminated from his employment with the Company or one of its subsidiaries with or without cause; provided, however, that in the event of a Participant’s death, payment of any amount then due under the Plan (or that, but for
Participant’s death, was matured and would otherwise have become due within six (6) months of Participant’s death) shall be made to the duly appointed and qualified executor or other personal representative of the Participant to be
distributed in accordance with the Participant’s will or applicable intestacy law; or in the event that there shall be no such representative duly appointed and qualified within six (6) months after the date of death of such deceased
Participant, then to such persons as, at the date of his death, would be entitled to share in the distribution of such deceased Participant’s personal estate under the provisions of the applicable statute then in force governing the descent of
intestate property, in the proportions specified in such statute; 
 6.2.2 the Participant does not execute a two
year non-competition agreement, in a form acceptable to the Committee, with the Company; or 
 6.2.3 the
Participant violates any agreement with the Company regarding the assignment of rights to the Company or the confidentiality of Company information. 
 6.3 Except as hereinafter provided, payment to a Participant of any amounts due under the Participation Plan shall be made either in a lump sum or in installments, payable at fixed or objectively
determinable times and in fixed or objectively determinable amounts as determined by the Committee at the time of each Qualifying Event. In establishing the time of payments, the Committee may differentiate among Participants on any basis it deems
appropriate. 
 6.4 In the event of a Qualifying Sale Event (as defined below) that involves consideration of publicly-traded
stock, the Committee may, in its discretion, and in lieu of a cash payment to one or more Participants, elect to distribute shares of such stock to such Participant(s) in lieu of cash. In such event, the fair market value of the stock distributed in
lieu of cash to such Participant(s) shall be determined by the Committee in its sole discretion. Such stock issued to Participant may contain certain commercially standard or other reasonable restrictions, whether imposed by law or otherwise.

  

 - 2 - 

 7. Qualifying Event. There shall be two categories of transactions, either of which
may constitute a “Qualifying Event.” 
 7.1 A “Qualifying Sale Event” shall be defined as a sale (whether
effected directly or through a merger or similar transaction) of some or all of the common stock Company by Platinum Equity Capital Partners, L.P. or its affiliates (but excluding a sale of common stock by the Company); provided, however, that in no
event shall a Qualifying Sale Event occur upon a sale to an affiliate of the Company. 
 7.2 A “Qualifying Distribution
Event” shall be defined as a cash dividend by the Company to Platinum Equity Capital Partners, L.P. and its affiliated shareholders. 
 8. Valuation of Performance Units 
 8.1. Upon the Qualifying Event, the
value of a Performance Unit will be an amount equal to the greater of (i) such amount as shall be determined, as of the applicable date, by the Committee in its sole discretion and (ii) the Qualified Event Value as of the applicable date,
as determined pursuant to Section 8.2 below. 
 8.2 The Qualified Event Value shall be calculated by the Committee pursuant
to one of the following methods: 
 8.2.1 In the event of a Qualifying Sale Event, the quotient of (A) the
net purchase price as determined by the Committee in its sole discretion; divided by (B) the Total Units Outstanding. 
 8.2.2 In the event of a Qualifying Distribution, the quotient of (A) the amount of such dividend or distribution, net of any and all withholdings, divided by (B) the Total Units Outstanding.

 As used herein, “Total Units Outstanding” is the number equal to ten times the Maximum Performance Units. In determining Qualified
Event Value, the Committee shall take into consideration the transaction costs and expenses incurred by the Company and its affiliates in connection with a Qualifying Event, and may modify the calculations set forth in this Section 8.2 to
reflect any capital or other contributions made to the Company (including those made in connection with any acquisitions made by or on behalf of the Company), to allow for the recapture of such contributions by the shareholders of the Company, or to
reflect the repayment of any debt of the Company. 
 9. Forfeiture of Performance Units on Termination of the Company.
If, at any time prior to a Qualifying Event, the Company ceases to engage in active trade and business, liquidates or dissolves or if the Company shall become insolvent or file for or have filed against it (and not dismissed within 60 days) a
bankruptcy petition, then all Performance Units, whether or not fully matured, shall be forfeited and neither the Participants nor their heirs, personal representatives, successors or assigns shall have any further rights with respect to such
Performance Units. 
 10. Nontransferability. Except as expressly set forth in this Plan, Performance Units granted
hereunder, and any rights and privileges pertaining thereto, may not be transferred, assigned, pledged or hypothecated in any manner, by operation or law or otherwise, other than by will or by the laws of descent and distribution, and shall not be
subject to execution, attachment or similar process. 
 11. Withholding. The Company shall have the right to deduct from
amounts to be paid pursuant to the Plan any taxes required by law to be withheld with respect to such awards. 
 12. Voting
and Dividend Rights. The Participant shall not be entitled, solely by reason of being a Participant under the Plan, to have any voting rights, to receive any distributions, or to have his Account credited or increased as a result of any
distribution with respect to the equity interests of the

  

 - 3 - 

 
Company. No Participant is or shall be deemed to be a shareholder of the Company for any purpose whatsoever. Neither the Company nor the Committee have or shall have any fiduciary or similar duty
to any Participant. 
 13. Miscellaneous Provisions. No employee or other person shall have any claim or right to be
granted a Performance Unit under the Plan. Neither the Plan nor any action taken hereunder shall be construed as creating or implying the creation of a contract of employment between any employee and the Company or any of its affiliates, or giving
any employee any right to be retained in the employ of the Company. The Plan shall at all times be entirely unfunded and no provision shall at any time be made with respect to segregating assets of the Company for payment of any benefits hereunder.
No Participant or other person shall have any interest in any particular assets of the Company by reason of the right to receive a benefit under the Plan and any such Participant or other person shall have only the rights of a general unsecured
creditor of the Company with respect to any rights under the Plan. Except when otherwise required by the context, any masculine terminology in this document shall include the feminine, and any singular terminology shall include the plural.

 14. Amendment of the Plan. The Committee may alter or amend the Plan from time to time without obtaining the approval
of the Participants. 
 15. Effectiveness and Term of Plan. The Plan amends and restates in its entirety, effective
February 16, 2009, the Rhombus Holding Corporation 2009 Participation Plan. The Committee may at any time terminate the Plan and unless sooner terminated by the Committee, the Plan shall expire on February 15, 2014. Any payments due a
Participant with respect to a Qualifying Event that occurs prior to termination shall continue to be made, notwithstanding the termination of the Plan. All Performance Units shall terminate upon termination or expiration of the Plan. 
 Amended and restated to clarify the determination of Adjusted Grant Values of Performance Units. 
  

 - 4 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]