Your Estimated Settlement Share is: N/A

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1 To: SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF ALAMEDA Antoine Turnage v. Joerns LLC, et al., Alameda County Superior Court, Case No. RG NOTICE OF PROPOSED CLASS ACTION SETTLEMENT ALL CURRENT AND FORMER NON-EXEMPT HOURLY EMPLOYEES OF JOERNS, LLC WHO WORKED IN CALIFORNIA AT ANY TIME DURING THE PERIOD FROM MARCH 17, 2012 AND MAY 5, YOU MAY BE ENTITLED TO RECEIVE MONEY FROM A PROPOSED SETTLEMENT. PLEASE READ THIS NOTICE CAREFULLY. YOUR RIGHTS MAY BE AFFECTED. This Notice is Court Approved. This is not a solicitation from an attorney. WHY DID I GET THIS NOTICE? Your Estimated Settlement Share is: N/A The Alameda County Superior Court has ordered that this Notice be sent to all Class Members. You have received this Notice because we believe that you are a Class Member who may be entitled to money from this settlement. A settlement has been reached in a class action lawsuit against Joerns, LLC ( Defendant ), entitled Antoine Turnage, et. al. v. Joerns LLC, et al., Case No. RG , which is currently pending in Superior Court of California, County of Alameda (the Action ). The settlement has been reached on behalf of Plaintiff Antoine Turnage ( Turnage ), as well as all current and former non-exempt hourly employees who were employed by Defendant within the State of California at any time during the period from March 17, 2012 through May 5, 2017 (the Class or Class Members ). The Court has granted preliminary approval of the proposed settlement. You have received this Notice of Proposed Class Action Settlement ( Notice ) because Defendant s records indicate that you are one of those non-exempt hourly employees who were employed by Defendant in California at some time during the period from March 17, 2012 through May 5, 2017 (referred to hereinafter as the Class Period ). This Notice informs you of the terms of the proposed settlement, describes your rights in connection with the settlement, and explains what steps you may take to object to, or exclude yourself from, the settlement. Because your rights will be affected by this settlement, it is extremely important that you read this Notice. If you do not exclude yourself from the settlement and the settlement is finally approved by the Court, you will be issued a settlement payment and be bound to the terms of the settlement and any final judgment. YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT DO NOTHING AND REMAIN IN THE CLASS EXCLUDE YOURSELF FROM THE SETTLEMENT If you do nothing, you will become a Participating Class Member and will be issued payment for a share of the Settlement (i.e., a Settlement Share ). You will also release Defendant and Released Parties of the Released Claims, which means that you give up your rights to sue Defendant and Released Parties for any of the Released Claims in the Action. Submit a written request for exclusion from the settlement by October 2, If you request exclusion from the settlement, you will not receive any payment under the settlement, and you will keep your rights to sue Defendant or Released Parties for any of the Released Claims. Page 1 of 6

2 OBJECT File an objection with the Court, and mail a copy to the Settlement Administrator, by October 2, 2017, to object to the settlement or any of its terms. If you object, you will still be considered a Participating Class Member, and be issued a Settlement Share, and give up your rights to ever sue Defendant or Released Parties for any of the Released Claims. IF YOU ARE A CURRENT EMPLOYEE OF DEFENDANT, STATE AND FEDERAL LAW PROHIBIT RETALIATION AND DISCRIMINATION AGAINST YOU REGARDLESS OF WHICH OF THE ABOVE OPTIONS YOU PURSUE. WHAT IS THIS LAWSUIT ABOUT? Antoine Turnage ( Plaintiff ) is a former hourly-paid, non-exempt employee of Defendant. On March 17, 2016, Plaintiff filed this wage and hour class action, entitled Antoine Turnage v. Joerns LLC, in the Alameda County Superior Court, Case No. RG ( Action or Lawsuit ). Plaintiff alleges causes of action against Defendant for: (a) failure to pay minimum wages and overtime wages (including but not limited to overtime, double time, straight time, minimum wage, unpaid overtime based on failure to incorporate value of commissions/non-discretionary bonuses and/or performance pay into the regular rate of pay, and/or off-the-clock time); (b) failure to timely pay wages during employment and associated waiting time penalties; (c) failure to provide proper meal and rest periods or premium pay in lieu thereof; (d) failure to provide reimbursements for necessary businessrelated expenses; (e) failure to provide complete and/or accurate wage statements (including wage statement penalties pursuant to Labor Code section 226); (f) failure to keep accurate payroll records; (g) failure to pay reporting time pay; (h) failure to timely pay wages due or final wages upon termination and associated waiting time penalties; and (i) violation of the Unfair Competition Law, Business & Professions Code et seq. Defendant denies each and all of the claims and contentions alleged by the Plaintiff. The Court has not made any rulings regarding the merits of the case. The parties participated in a mediation before an experienced wage and hour mediator, which has resulted in a settlement of the lawsuit. On July 21, 2017, a hearing was held before the Honorable Winifred Y. Smith, the judge assigned to this case. Judge Smith granted preliminary approval to the Settlement, preliminarily appointed Plaintiff as the Class Representative, preliminarily appointed Lawyers for Justice, PC as counsel for the Class ( Class Counsel ), and directed that you receive this Notice explaining your rights and options under the settlement. WHAT IS A CLASS ACTION? In a class action lawsuit, one or more persons sue on behalf of other people who have similar claims. Here, Antoine Turnage is the Plaintiff and the Class Representative in the Action, and he asserts claims on behalf of himself and the Class. Joerns, LLC is the Defendant (along with Joerns Healthcare, Inc., which was dismissed by Plaintiff before this Settlement was reached). A class action allows a court to resolve the claims of all the class members at the same time. Unless they request to be excluded, a class member is bound by the determination or judgment entered in the case, whether the class wins or loses, and may not file his or her own lawsuit on the same claims that were decided in the class action. A class action allows one court to resolve all of the issues in a lawsuit for all the class members who choose not to exclude themselves from the class. WHO IS INCLUDED IN THE CLASS? The Class includes all current and former non-exempt employees of Defendant who worked in California at any time between March 17, 2012 and May 5, Class Members who do not submit a timely and valid written request for exclusion will be deemed Participating Class Members. Only Class Members who submit a request for exclusion from the settlement will be excluded from the Class. Page 2 of 6

3 WHAT ARE THE TERMS OF THE CLASS SETTLEMENT? In exchange for the release of claims against it and final disposition on the Action, Defendant will pay Seven Hundred Fifty Thousand Dollars ($750,000.00) ( Gross Settlement Amount ). The Net Settlement Amount means the amount remaining from the Gross Settlement Amount, after reductions for the Court-approved amounts for attorneys fees and reimbursement of litigation costs and expenses to Class Counsel, an enhancement award to Plaintiff, and settlement administration costs. The Net Settlement Amount will be distributed to Participating Class Members. Subject to Court approval, the Gross Settlement Amount will be allocated at follows: Settlement Shares: Class Members who do not submit a request for exclusion from the Settlement (i.e., Participating Class Members) will receive a share of the Net Settlement Amount ( Settlement Share ). Your estimated gross Settlement Share is stated on the first page of this Notice, but the actual amount may vary, based on the actual implementation of the settlement. The Settlement Shares will be calculated as follows: o o o Each Participating Class Member s Settlement Share will be calculated by dividing his or her Individual Workweeks by the Total Workweeks, and multiplying the resulting amount by the Net Settlement Amount. Individual Workweeks means the total number of weeks that the Class Member worked for Defendant as a non-exempt hourly employee within the State of California during the Class Period (i.e., from March 17, 2012 to May 5, 2017). Total Workweeks means the total amount of all Participating Class Members Individual Workweeks, combined. For tax purposes, the Settlement Shares will be allocated as follows: 45% unpaid wages (the wage portion ); and 5% unreimbursed business expenses, 25% interest, and 25% penalties (collectively, the non-wage portion ). The wage-portion of each Settlement Share will be subject to, and will be reduced by, the applicable employee s and employer s share of payroll taxes and withholdings, and will be reported on an IRS Form W2. The non-wage portion will not be subject to any taxes or withholdings, and will be reported on an IRS Form Settlement Share checks will remain valid and negotiable for 160 calendar days after they are mailed to the Participating Class Members. After that time, any uncashed checks will be cancelled and funds associated with such cancelled checks, plus any accrued interest that has not been distributed, shall be transmitted by the Settlement Administrator as follows: 25% to the State Treasury for deposit in the Trial Court Improvement and Modernization Fund; 25% to the State Treasury for deposit into the Equal Access Fund of the Judicial Branch; and 50% to the California Department of Industrial Relations Unpaid Wage Fund, with an identification of the Participating Class Member who failed to timely cash his or her check at approximately 50% of the value of the Participating Class Member s uncashed Settlement Share check. Class Representative Enhancement Award: Plaintiff will request that the Court grant him an award of $7,000 in recognition of his efforts and risks in assisting with the prosecution of the Action. This amount will be paid from the Gross Settlement Amount and will be in addition to any Settlement Share that the Class Representative is entitled to receive as a Participating Class Member. Class Counsel Award: Class Counsel will request that the Court approve an award of up to 35% of the Gross Settlement Amount ($262,500 of $750,000) as attorneys fees. Class Counsel will also request that the Court approve the allocation for reimbursement of Class Counsel s litigation costs and expenses in an amount not to exceed $35,000. Both the amounts for attorneys fees and reimbursement of litigation costs and expenses will be paid from the Gross Settlement Amount, subject to Court approval. Settlement Administration Costs: The parties have selected, and the Court has approved, CPT Group, Inc. to serve as the Settlement Administrator. The Settlement Administrator will be responsible for mailing the Notice to Class Members, receiving and processing requests for exclusion and disputes regarding the Settlement Shares, mailing checks and tax forms, and performing tax withholdings and reporting, among other tasks. The costs of settlement administration are currently estimated not to exceed $15,000, and shall be paid from the Gross Settlement Amount. WHAT HAPPENS IF I DO NOT EXCLUDE MYSELF FROM THE SETTLEMENT? Page 3 of 6

4 Class Members who do not submit a timely and valid written request for exclusion will be deemed Participating Class Members, and, if the Settlement receives final approval, will be deemed to have fully and finally released the Released Claims against Defendant and the Released Parties, as defined below. The Released Claims are any and all claims, causes of action, damages, civil and statutory penalties, interest, fines, debts, liens, liabilities, demands, obligations, attorneys' fees, costs, and any other form of relief or remedy in law or equity, whether known or unknown, suspected or unsuspected that existed or came into existence while a Class Member between March 17, 2012 and the date of preliminary approval of the Settlement by the Court, that were or could have been alleged based on the facts and claims pleaded in the Operative Complaint (including claims and remedies to which the Court has previously sustained Defendant s demurrer and motion to strike), including but not limited to (1) all statutory and common law causes of action referenced in the Action and corresponding provisions of the applicable Industrial Welfare Commission Wage Orders, including but not limited to (i) Labor Code sections 201, 202, 203, 204, 218, 218.5, 226, 226.7, 510, 512, 1174, , 1194, , 1197, , 1198, 2800, 2802, (ii) failure to pay wages (including but not limited to overtime, double time, straight time, reporting time pay, minimum wage, unpaid overtime based on failure to incorporate value of commissions, non-discretionary bonuses/incentive payments/performance bonuses into the regular rate of pay, and/or off-the-clock time), (iii) failure to provide meal and rest break and associated premium payments, (iv) failure to provide and maintain accurate and itemized wage statements, (v) final pay, (vi) waiting time penalties, (vii) restitution, (viii) disgorgement, (ix) injunction, (x) civil penalties, (xi) statutory penalties, (xi) liquidated damages, (xii) expense reimbursement, (xiii) any cause of action or claim under Business and Professions Code sections 17200, et seq., interest, and (xiv) costs and attorneys fees, against Joerns, LLC and its present and former officers, directors, members, managers, shareholders, agents, parents (including Joerns Healthcare Parent, LLC, and Joerns Woundco Holdings, Inc.), subsidiaries, insurers, attorneys, operators, partners, joint venturers, successors, or assignees (the Released Parties ). As to the Released Claims, Participating Class Members acknowledge and agree that: (1) their claims for compensation and any other payments and/or interest in the Action are disputed; and (2) the payments under the settlement constitute full payment of any amounts allegedly due to them based on Released Claims. In light of the payment by Defendant of all amounts due to Participating Class Members for Released Claims, the Participating Class Members acknowledge and agree that the payment is full payment of all Released Claims by Class Members for disputed wages allegedly owed by Defendant, which shall be deemed to have been paid in compliance with Labor Code section 206.5, which provides in pertinent part as follows: No employer shall require the execution of any release of any claim or right on account of wages due, or to become due, or made as an advance on wages to be earned, unless payment of such wages has been made. WHAT DO I NEED TO DO TO RECEIVE A SETTLEMENT PAYMENT? You do not need to do anything to receive a Settlement Share. Your estimated Settlement Share, as stated on page 1 of this Notice, was calculated using your number of Individual Workweeks, based on Defendant s records. Defendant s records show that you worked a total of N/A Workweeks during the Class Period. If you dispute the number of Individual Workweeks worked by you, as stated above, you must call the Settlement Administrator at the telephone number listed below by October 2, 2017 and inform them of the basis for your dispute. You may be asked to provide supporting evidence and/or documentation as to the amount of Individual Workweeks you claim to have worked. The Settlement Administrator is: Turnage v. Joerns Class Action Settlement c/o CPT Group, Inc. 50 Corporate Park Irvine, California Toll Free: Page 4 of 6

5 WHAT IF I DON T WANT TO PARTICIPATE IN THIS SETTLEMENT? You have the right to request exclusion from the settlement. To do so, you must submit a written request for exclusion to the Settlement Administrator. To be timely, any such request for exclusion must be mailed to the Settlement Administrator at the address listed above, by first-class postage pre-paid, postmarked no later than October 2, To be valid, a written request for exclusion must contain: (1) your name, address and telephone number; (2) a statement that you wish to be excluded from the Turnage v. Joerns Class Action Settlement; and (3) your signature. Unless you timely request to be excluded from the settlement, you will be bound by the judgment upon final approval of the settlement, including the release of Released Claims described in this Notice. If you timely request to be excluded from the settlement, you will not be entitled to receive any payment under the settlement. Class Counsel will not represent your interests if you request to be excluded. WHEN IS THE FINAL APPROVAL HEARING? The Court has scheduled a hearing to determine whether to grant final approval to the settlement ( Final Approval Hearing ). The Final Approval Hearing is scheduled to take place on November 3, 2017, at 11:00 a.m. in Department 21 of the Superior Court of the State of California for the County of Alameda, located at 1221 Oak Street, Oakland, CA You are not required to attend the hearing, but you may appear at the hearing, and if you hire an attorney to do so, it will be at your own expense. WHAT IF I WANT TO OBJECT TO THIS SETTLEMENT? If you have not asked to be excluded from the settlement, you may object to the settlement in writing. To be valid, any objection must be filed with the Court, and submitted to the Settlement Administrator at the address listed above, no later than October 2, In addition, the objection must state: (1) the full name, address and telephone number of the Class Member; (2) a written statement of all grounds for the objection accompanied by legal support for the objection; (3) a statement as to whether the Class Member intends to appear at the final approval hearing; (4) proof of membership in the Class; and (5) the signature of the Class Member or his/her counsel. In addition, any Class Member objecting to the settlement shall provide a detailed list of any other objections submitted by the objector and, if represented, by the objector's counsel, to any class actions filed in any court in the United States (state or federal) in the previous five years. If the Class Member and/or his/her counsel has not objected to any other class action settlement in the previous five years, he/she shall affirmatively so state under oath in the objection. You have the right to hire your own attorney, at your own expense, to submit an objection or appear on your behalf at the Final Approval Hearing. You may, but are not required to, appear at the Final Approval Hearing to have your objection considered by the Court. Filing an objection does not mean that you are excluded from the Class. You will still receive a Settlement Share, and will be deemed to have released the Released Claims. To request exclusion from the Settlement and to not be included in the Class, you must submit a timely and valid request for exclusion, as described above. Only Participating Class Members (i.e., Class Members who do not submit a timely and valid request for exclusion) may object to the Settlement. WHAT HAPPENS IF I DO NOT EXCLUDE MYSELF FROM THIS SETTLEMENT? The settlement, if finally approved by the Court, will bind all Class Members who do not request to be excluded from the settlement whether or not they receive or timely cash their check for the payment of their Settlement Share. Final approval of the settlement will bar any Class Member who does not request to be excluded from the settlement from hereafter initiating a lawsuit or proceeding regarding the Released Claims. The Settlement Agreement contains additional details about the scope of the release. Page 5 of 6

6 DO I HAVE A LAWYER IN THIS CASE? The Court has ordered that, for purposes of this settlement, the interests of the Plaintiff and the Class Members are represented by: Edwin Aiwazian Lawyers for Justice, PC 410 West Arden Avenue, Suite 203 Glendale, California Tel: (818) Fax: (818) Class Members will not be separately charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. WHAT IF MY INFORMATION CHANGES? If, after you receive this Notice, you change your postal address or telephone number, it is your responsibility to inform the Settlement Administrator of your updated information. Please contact the Settlement Administrator at the address or telephone number listed above, on page 5 of this Notice. FURTHER INFORMATION This Notice is a summary of the basic terms of the Settlement Agreement. For the precise terms of this Settlement, consult the First Amended Release and Settlement Agreement ( Settlement Agreement ). The pleadings and other records in this Action, including the Settlement Agreement, may be examined online on the Alameda County Superior Court s website, known as 'DomainWeb,' at After arriving at the website, click the 'Search By Case Number ' link, then enter RG as the case number and click 'SEARCH.' Images of every document filed in the case may be viewed through the 'Register of Actions' at a minimal charge. You may also view images of every document filed in the case free of charge by using one of the computer terminal kiosks available at each court location that has a facility for civil filings. If you need more information or have any questions, you may call the Settlement Administrator toll free at , or contact Class Counsel at the address and telephone number listed above. Please refer to the Joerns Class Action Settlement. You may also refer to the Notice and other important documents in the case which may be accessed at the Settlement Administrator s Website: PLEASE DO NOT TELEPHONE THE COURT OR DEFENDANT s COUNSEL FOR INFORMATION REGARDING THIS SETTLEMENT. Page 6 of 6