º Bay Area Beverage failed to provide its employees with proper meal and rest periods;

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1 SUPERIOR COURT OF THE STATE OF CALIFORNIA, COUNTY OF CONTRA COSTA TYRONE WINDHAM, TERRY COLLINS, and TIMOTHY DAVIS, et al. V. T.F. LOUDERBACK, INC. dba BAY AREA BEVERAGE COMPANY, ET AL. - CASE NO. MSC A court authorized this notice. This is not a solicitation from a lawyer. IF YOU WERE EMPLOYED BY BAY AREA BEVERAGE COMPANY ( BAY AREA BEVERAGE ) ANY TIME BETWEEN MARCH 10, 2012 AND MARCH 17, 2017, YOU COULD RECEIVE A PAYMENT FROM A PROPOSED CLASS ACTION SETTLEMENT. A proposed class action settlement ( Settlement ) has been reached between plaintiffs Tyrone Windham, Terry Collins, and Timothy Davis ( Plaintiffs ) and defendant T.F. Louderback, Inc. dba Bay Area Beverage Company ( Bay Area Beverage ). The Settlement resolves a class action lawsuit about claims that Bay Area Beverage allegedly violated various California labor laws. The proposed settlement resolves claims that: º Bay Area Beverage failed to pay proper minimum wage and overtime compensation to its employees; º Bay Area Beverage failed to provide its employees with proper meal and rest periods; º Bay Area Beverage failed to reimburse its employees for all necessary business expenses; º Bay Area Beverage failed to provide proper itemized pay stubs to its employees, and º Bay Area Beverage failed to pay all earned wages to former employees at the end of their employment. Bay Area Beverage denies that it has done anything wrong and contends that it has complied with all labor laws. Bay Area Beverage has entered into this Settlement solely to resolve this lawsuit. YOUR LEGAL RIGHTS AND OPTIONS UNDER THIS SETTLEMENT PARTICIPATE EXCLUDE YOURSELF To receive a cash payment from the Settlement, you do not need to do anything. A check will be sent to you after the Court approves the Settlement. By participating in the Settlement, you will give up your rights to make the claims above, or any related claims, against Bay Area Beverage. Receive no payment from the Settlement but you keep all your rights against Bay Area Beverage. The only way for you to retain your rights against Bay Area Beverage involving legal claims that are the same as or similar to the ones in this case is to submit a valid Request for Exclusion form to the Claims Administrator Windham v. T. F Louderback, Inc. dba Bay Area Beverage Company c/o Simpluris, Inc., PO Box Santa Ana, CA postmarked no later than May 19, Tell the Court why you don t approve of this Settlement. OBJECT If you wish to object to the Settlement, you must not exclude yourself from the Settlement and you must mail to the Claims Administrator at Windham v. T. F Louderback, Inc. dba Bay Area Beverage Company c/o Simpluris PO Box Santa Ana, CA your written objection and supporting papers no later than May 19, Your rights and options are explained in more detail below. The Court handling this case still has to decide whether to approve the Settlement. Payments will only be issued if the Court grants final approval to the Settlement. Additional information regarding the Settlement is available through the Claims Administrator or Plaintiffs Counsel, whose contact information is provided in this notice. The full terms of the Settlement, Amendment to the Settlement, and release of claims, as well as the relevant documents in this lawsuit, can be found online at the following address: Page 1 of 6

2 1. Why did I get this notice? FREQUENTLY ASKED QUESTIONS Bay Area Beverage s records show that you are, or were, employed as an hourly-paid or non-exempt employee of Bay Area Beverage within the State of California between March 10, 2012 and March 17, The lawsuit in the Superior Court of California, County of Contra Costa, is known as Windham, et al. v. T.F. Louderback, Inc. dba Bay Area Beverage Company, et al, case number MSC ( Action ). Tyrone Windham, Terry Collins, and Timothy Davis are called the Plaintiffs and the company they sued, T.F. Louderback, Inc. dba Bay Area Beverage Company, is called the Defendant or Bay Area Beverage. The judge assigned to oversee this class action is the Honorable Barry P. Goode (the Court ). 2. What is the lawsuit about? The lawsuit generally involves claims that: º Bay Area Beverage failed to pay proper minimum wage and overtime compensation to its employees; º Bay Area Beverage failed to provide its employees with proper meal and rest periods; º Bay Area Beverage failed to reimburse its employees for all necessary business expenses; º Bay Area Beverage failed to provide proper itemized pay stubs to its employees, and º Bay Area Beverage failed to pay all earned wages to former employees at the end of their employment. Bay Area Beverage denies that it has done anything wrong and asserts that it has fully complied with all labor laws and that it has entered into the Settlement solely to resolve this lawsuit. 3. Why is this lawsuit a class action? In a class action, one or more individuals are called the class representatives. In this case, Tyrone Windham, Terry Collins, and Timothy Davis are the class representatives who brought suit on behalf of themselves and other employees who have similar claims. All of these people are a class or class members. One court resolves the issues for all class members, except for those who exclude themselves from the class. On March 17, 2017 the Court issued an order conditionally certifying the Settlement Class defined in response to Question 4 below for purposes of settlement only. 4. Who is in the Settlement Class? The Settlement Class is defined as follows: All hourly-paid or non-exempt employees of Bay Area Beverage employed within the State of California at any time between March 10, 2012 and March 17, 2017 who do not opt out or request to be excluded from the Settlement. 5. Why is there a settlement? After the parties exchanged extensive documents and information about this lawsuit, both sides agreed to the Settlement to avoid the cost and risk of further litigation. The Settlement does not mean that any law was broken. Bay Area Beverage denies all of the legal claims in the case. The Class Representatives and their lawyers think the Settlement is in the best interests of all Settlement Class members. Page 2 of 6

3 THE SETTLEMENT BENEFITS WHAT YOU GET 6. What does the settlement provide? Under the terms of the Settlement, Bay Area Beverage agrees to pay a total settlement amount of $2,500,000. Deducted from the total settlement amount will be amounts approved at a final approval hearing by the Court for attorneys fees (not to exceed $875,000 or 35% of the total settlement amount); attorneys actual costs as approved by the Court (not to exceed $30,000); an enhancement award to each of the Plaintiffs for their services as the Class Representatives (not to exceed $7,500 for each Plaintiff) as approved by the Court; a Private Attorneys General Act ( PAGA ) payment in the amount of $50,000, of which $37,500 will be paid to the California Labor Workforce Development Agency ( LWDA ) and $12,500 will be paid to the class members; and the fees and expenses of the Claims Administrator Simpluris. The subtraction of all Court-awarded deductions from the total settlement amount will result in a Net Settlement Sum, which will be used for payments to those class members who participate in the Settlement. All applicable taxes and withholding amounts will be deducted from the settlement payments. 7. How much will I get if I participate in the Settlement? If you participate In the Settlement, you qualify to receive a minimum pre-tax payment of approximately $ «MERGED_EstSettAmnt_CALC» ( Settlement Amount ), which is explained in more detail below. This minimum payment for «FirstName» was determined based on: º How many work weeks you actively worked at Bay Area Beverage in an hourly-paid or non-exempt position between March 10, 2012 and March 17, 2017 and received wages (the Class Period ); and This Settlement Amount is the minimum estimated gross amount that you will receive if you participate in the Settlement. Your actual Settlement Amount may end up being more than the estimate above, depending on the number of Class Members who ultimately participate in the Settlement. In any event, your gross Settlement Amount will be subject to withholding for applicable taxes. The minimum pre-tax payment listed above is comprised of the following settlement payment(s) under the terms of the Settlement: Settlement Payment Bay Area Beverage s records indicate you were employed in an hourly-paid or non-exempt position between March 10, 2012 and March 17, 2017, which entitles you to a share of the Net Settlement Sum in the amount of «MERGED_EstSettAmnt_CALC».This individual Settlement Payment is based on Bay Area Beverage s payroll records, which indicate that you worked a total of «MERGED_WW_CALC» workweeks in a covered position during some or all of the Class Period. If you disagree with the total number of workweeks you worked during the Class Period as stated above, you may dispute this number by submitting documentation to the Claims Administrator showing that you worked a different number of workweeks during the applicable portion of the Class Period. The Claims Administrator will then make a final determination based on your employment records and any other documents you submit. In resolving a dispute, Bay Area Beverage s records will be presumed to be accurate and correct unless the information you submit proves otherwise. 8. What am I giving up in exchange for the settlement payment? In exchange for the settlement payment being provided, Plaintiffs and each member of the settlement class who does not submit a Request for Exclusion (defined in response to Question 11 below) will release and discharge Bay Area Beverage for any and all claims related to: º Bay Area Beverage s alleged failure to pay proper minimum wage and overtime compensation to you as a Bay Area Beverage employee; º Bay Area Beverage s alleged failure to provide you with proper meal and/or rest periods; º Bay Area Beverage s alleged failure to reimburse you for all necessary business expenses; º Bay Area Beverage s alleged failure to provide you with proper itemized pay stubs; and º Bay Area Beverage s alleged failure to pay all earned wages to a former employee at the end of their employment. By participating in this lawsuit, accepting, and cashing the Settlement Payment, you will not be able to make a claim or file a lawsuit against Bay Area Beverage for any of the claims above, or any related claims, regardless of whether you were aware that you may have had any claims. A copy of the full release language that you are agreeing to by accepting the Settlement Payment can be found in Section 5 of the Stipulation of Settlement and Request to Certify Class for Settlement Purposes, which can be found online at the following address: can talk for free to one of the lawyers listed below in Question 14 or you can hire and talk to your own lawyer if you have questions about the release of claims and what it means. Page 3 of 6

4 HOW TO GET A PAYMENT 9. How do I get a payment? To receive a payment, you do not need to do anything. The Court will hold a final approval on June 29, 2017 at 8:30 a.m. and if the settlement is approved by the Court, then a Settlement Payment will be sent to the address where you received this notice. If you would like to change the address where your Settlement Payment will be mailed, please contact the Claims Administrator at: WINDHAM, et al. v. T.F. LOUDERBACK, INC. dba BAY AREA BEVERAGE COMPANY, et al. C/O SIMPLURIS, INC. PO BOX SANTA ANA, CA When will I get my check? Checks will be mailed to participating settlement class members after the Court grants final approval of the Settlement. If the Court approves the settlement after a hearing on June 29, 2017 (called the Final Approval Hearing ), there may be appeals. If there are any appeals, resolving them could take some time, so please be patient. Provided that the Court grants final approval of the Settlement, checks will be sent out in late 2017, assuming there are no appeals. If you have questions regarding when checks will be mailed, please contact the Claims Administrator. EXCLUDING YOURSELF FROMTHE SETTLEMENT ( OPTOUT ) 11. How do I ask the Court to exclude me from the Settlement Class? If you do not wish to participate in the Settlement, you may be excluded (i.e., opt out ) by sending a timely written Request for Exclusion form that contains your name, address, telephone number, and the last four digits of your Social Security number and the name of the case and case number (Windham, et al. v. T.F. Louderback, Inc. dba Bay Area Beverage Company, et al, case number MSC )(called a Request for Exclusion ). If you opt out of the Settlement, you will not be releasing the claims set forth in Question 8. The Request for Exclusion must be signed, dated and mailed by First Class U.S. Mail, or the equivalent, postmarked no later than May 19, 2017 to: WINDHAM, et al. v. T.F. LOUDERBACK, INC. dba BAY AREA BEVERAGE COMPANY, et al. C/O SIMPLURIS, INC., PO BOX SANTA ANA,CA The Court will exclude any settlement class member who submits a complete and timely Request for Exclusion as described in the paragraph above. Requests for Exclusion that do not include all required information and/or that are not timely submitted will bedeemed null, void, and ineffective. Any settlement class member who fails to submit a valid and timely Request for Exclusion on or before the above-specified deadline shall be bound by all terms of the Settlement, release and any Judgment entered in the Action if the Settlement receives final approval from the Court. 12. If I exclude myself, can I get anything from the Settlement? No. By electing to be excluded from the Settlement Class, (1) you will not receive the check generated by the Settlement (if approved), even if you would otherwise be entitled to it; (2) you will not be bound by any further order or judgments entered for or against the Settlement Class; (3) you will have no right to object to the Settlement or be heard at any hearing scheduled for the Court s consideration of the Settlement; and (4) you may, at your own expense, present any claims against Bay Area Beverage that were asserted by Plaintiffs in this case. Plaintiffs Counsel (see Question 14 below) will not represent your interests if you elect to be excluded. 13. If I don t exclude myself, can I sue later? No. Unless you exclude yourself, you give up the right to sue Bay Area Beverage for any of the claims described in response to Question 8 above. You must exclude yourself from the Settlement Class to start or continue your own lawsuit. Plaintiffs Counsel (see Question 14 below) will not represent your interests if you elect to be excluded. Page 4 of 6

5 THE LAWYERS REPRESENTING YOU 14. Do I have a lawyer in this case? The following lawyers have been retained to serve as Class Counsel for the Settlement Class: Douglas Han Shunt Tatavos-Gharajeh Daniel J. Park Joy Llaguno JUSTICE LAW CORPORATION 411 N. Central Avenue, Suite 500 Glendale, CA Telephone: (818) Fax: (818) Who are the lawyers representing Bay Area Beverage? The following lawyers have been retained to represent Bay Area Beverage in this case: Seth L. Neulight Marjorie S. Fochtman Traci Bernard-Marks NIXON PEABODY LLP One Embarcadero Center, 18th Floor San Francisco, CA Telephone: (415) Fax: (415) OBJECTING TO THE SETTLEMENT 16. How do I object to the Settlement? Any member of the Settlement Class may object to the proposed Settlement, or any portion of it, by filing a written objection and supporting papers with the Claims Administrator, Simpluris, Inc. at WINDHAM, et al. v. T.F. LOUDERBACK, INC. dba BAY AREA BEVERAGE COMPANY, et al. C/O SIMPLURIS, INC., PO BOX SANTA ANA, CA 92799, which must be postmarked no later than May 19, A written objection must contain the objecting person s full name and current address, specifically state all objections and the reasons for them, include any and all supporting papers (e.g. all briefs, written evidence, and declarations), and include a statement as to whether you intend to appear before the Court at the Final Approval Hearing (see Question 18). A Settlement Class member who wants to object but who fails to comply with the objection procedure described here will be deemed not to have objected. Any member of the Settlement Class who does not timely submit written objections will not be permitted to present his or her objections at the Court s Final Approval Hearing (see Question 18). Any Settlement Class member who submits an objection remains eligible to receive monetary compensation from the Settlement. Only Settlement Class members who do not file a Request for Exclusion may object. 17. What s the difference between objecting and asking to be excluded? Objecting is simply telling the Court that you do not like something about the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you exclude yourself, you cannot object because the Settlement will no longer affect you. You will not receive any money under the Settlement if you exclude yourself. THE COURT S FINAL APPROVAL HEARING The Court will hold a hearing to decide whether to approve the Settlement. If you have submitted a timely objection or notice of intention to appear you may attend and you may ask to speak, but you don t have to do so. Page 5 of 6

6 18. When and where will the Court decide whether to approve the settlement? The Court will hold a Final Approval Hearing on June 29, 2017, at 8:30 A.M. in Department 17 at the Superior Court of California, County of Contra Costa, Wakefield Taylor Courthouse, which is located at 725 Court Street, Martinez, California, The Final Approval Hearing may be moved to a different date and/or time without additional notice. At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will only listen to people who have submitted a timely objection or notice of intention to appear. The Court also will decide how much to pay Plaintiffs Counsel for attorneys fees and costs and how much of an enhancement award to pay the Class Representatives. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take. 19. Do I have to come to the hearing? No. Plaintiffs Counsel and Bay Area Beverage s lawyers will answer any questions the judge may have. But, you are welcome to come at your own expense. If you send an objection, you don t have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also pay another lawyer at your own expense to attend the hearing and enter an appearance on your behalf, but it is not required. 20. May I speak at the hearing? You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must send a written statement along with your objection saying that it is your intent to appear at the Windham, et al. v. T.F. Louderback, Inc. dba Bay Area Beverage Company, et al. settlement. Be sure to include your name, address, telephone number, and your printed and signed name. Your objection and statement of notice of intent to appear must be postmarked no later than May 19, 2017 and sent to WINDHAM, et al. v. T.F. LOUDERBACK, INC. dba BAY AREA BEVERAGE COMPANY, et al. C/O SIMPLURIS, INC., PO BOX SANTA ANA, CA You cannot speak at the hearing if you excluded yourself, and you will not be able to speak unless you timely file an objection that states your intent to appear. IF YOU DO NOTHING 21. What happens if I do nothing at all? If you do nothing, you will receive the Settlement Payment set forth in response to Question 7, and you will not be able to make a claim, start a lawsuit or continue a lawsuit against Bay Area Beverage about the claims in this case, or any related claims, described in response to Question 8 ever again. GETTING MORE INFORMATION 22. How do I get more information? This notice summarizes the Settlement. More details are in the Stipulation of Settlement and Request to Certify Class for Settlement Purposes Only ( Stipulation ). You may contact Class Counsel or the Claims Administrator for more information. Additionally, copies of the Stipulation, amendment to the Stipulation, release and other important filings in the case can be found online at the following address: PLEASE DO NOT CONTACT THE CLERK OF THE COURT, THE JUDGE OR BAY AREA BEVERAGE WITH INQUIRIES. Date: March 17, 2017 BY ORDER OF THE COURT /s/ Honorable Barry P. Goode Page 6 of 6

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