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1 Patrick Sinay, et al. v. Essendant Co., et al. Superior Court of the State of California, County of Los Angeles, Case No. BC ATTENTION: ALL CURRENT AND FORMER HOURLY-PAID OR NON-EXEMPT EMPLOYEES OF ESSENDANT CO. FORMERLY KNOWN AS UNITED STATIONERS SUPPLY CO. AND ANY AND ALL SUBSIDIARIES THEREOF WITHIN THE STATE OF CALIFORNIA AT ANY TIME DURING THE PERIOD FROM FEBRUARY 17, 2013 TO SEPTEMBER 12, PLEASE READ THIS NOTICE CAREFULLY. THIS NOTICE RELATES TO A PROPOSED CLASS ACTION SETTLEMENT. IF YOU ARE A CLASS MEMBER, IT CONTAINS IMPORTANT INFORMATION AS TO YOUR RIGHTS AS FURTHER DESCRIBED BELOW. Pursuant to the order of the Superior Court of the State of California for the County of Los Angeles ( Los Angeles County Superior Court ), you are hereby notified that a settlement has been reached between the parties in the lawsuit entitled Patrick Sinay, et. al. v. Essendant Co., et al. ( Lawsuit ), which is pending in the Los Angeles Superior Court, against Essendant Co. f/k/a/ United Stationers Supply Co. ( Essendant Co. or Defendant ) on behalf of a class consisting of all current and former hourly-paid or non-exempt individuals employed by Essendant Co. f/k/a/ United Stationers Supply Co. and any and all subsidiaries within the State of California at any time during the period from February 17, 2013 to September 12, 2017 (the Class or Class Members ). You have received this notice because Essendant Co. s records indicate that you are a member of the Class. This notice is designed to advise you of how you can participate in, comment on, or request exclusion from, the settlement. I. BACKGROUND OF THE LAWSUIT The lawsuit was commenced by the filing of a Complaint on February 17, 2017, by former employee Patrick Sinay, and on October 20, 2017, a First Amended Complaint ( Operative Complaint ) was filed adding another plaintiff by the name of Marques Jackson (collectively Plaintiffs ). Plaintiffs allege claims on behalf of hourly-paid or non-exempt employees who worked for Essendant Co. and its subsidiaries in California, for violations of the California Labor Code and the California Business and Professions Code. The Lawsuit alleges that Essendant Co. failed to pay wages, including, but not limited to, overtime and minimum wages, failed to provide meal and rest periods and associated premiums, failed to provide accurate wage statements, failed to timely pay wages during employment and upon termination, failed to reimburse business expenses, failed to keep complete or accurate payroll records, committed unfair business practices, and violated the California Private Attorneys General Act of 2004, California Labor Code section 2698, et seq. ( PAGA ). The Lawsuit seeks recovery of alleged unpaid wages, statutory and civil penalties, interest, attorneys fees, and costs. The Lawsuit has been actively litigated. Plaintiffs counsel has been provided with extensive information about the case, and the parties have participated in extensive settlement discussions. As a result of these negotiations, the parties entered into the Joint Stipulation of Class Action and PAGA Settlement and Release and Amendment No. 1 to Joint Stipulation of Class Action and PAGA Settlement and Release (collectively the Settlement Agreement or Settlement ), which are attached as Exhibit 1 to the Declaration of Edwin Aiwazian In Support of Plaintiffs Motion for Preliminary Approval of Class Action Settlement and Exhibit A to the Supplemental Declaration of Edwin Aiwazian In Support Of Plaintiffs Motion for Preliminary Approval of Class Action Settlement, respectively. Each party has entered into the Settlement with the intention to avoid further disputes and litigation, having considered their attendant risk, inconvenience and expense. By granting preliminary approval of the Settlement, the Court has determined that the Settlement falls within the range of possible approval as fair, reasonable, and adequate. The final determination of whether the Settlement is fair, reasonable, and adequate will be made at the Final Approval Hearing. If the Settlement is granted final approval, by the Court, and you do not opt out of the Settlement in accordance with the requirements set forth herein, you will be bound by the settlement and you will be issued an Individual Settlement Payment. II. SUMMARY OF THE PROPOSED SETTLEMENT The Settlement represents a compromise and resolution of highly disputed claims. Nothing in the Settlement is intended to or should be construed as an admission by Essendant Co. and its affiliated companies that Plaintiffs claims in the Lawsuit have merit or that Essendant Co. has any liability to Plaintiffs or the Class on those claims. Essendant Co. vigorously denies all of Plaintiffs material allegations. Specifically, Essendant Co. denies that Plaintiffs and the Class are owed any compensation for alleged unpaid wages, penalties, interest, attorneys fees, or costs of any kind. On May 10, 2018, the Court preliminarily appointed Plaintiffs Patrick Sinay and Marques Jackson as representative of the Class ( Class Representatives ), and preliminary appointed attorneys for the Plaintiffs, Lawyers for Justice, PC, to represent - 1 -

2 the Class ( Class Counsel ). Class Counsel represent the Plaintiffs and Class Members, including you. Class Counsel believe that further proceedings in this case, including a trial and possible appeals, would be expensive and protracted, and that that it is uncertain how various legal questions at issue would ultimately be determined in the Lawsuit. Therefore, upon careful consideration of all of the facts and circumstances of this case, Class Counsel believe that the proposed Settlement is fair, reasonable, and adequate. III. SETTLEMENT PAYMENT BASED ON COMPENSABLE WORKWEEKS Under the Settlement, Class Members who do not submit a timely and valid Request for Exclusion ( Settlement Class Member ) will receive a Settlement Share based on the number of weeks he or she worked for Essendant Co. during the Class Period of February 17, 2013 to September 12, 2017 as an hourly-paid or non-exempt employee ( Compensable Workweeks ). Settlement Class Members who worked for Defendant from February 17, 2016 to September 12, 2017 ( PAGA Settlement Class Member ) will also receive a PAGA Share based on their respective number of Compensable Workweeks. Payments of Settlement Shares and PAGA Shares will be paid only after the Court grants final approval of the Settlement, in accordance with the terms of the Settlement Agreement and contemplated Final Order. Currently, the Final Approval Hearing is set for September 28, 2018, at 11:00 a.m. According to Essendant Co. s records: You worked Compensable Workweeks. The estimated Gross Settlement Share you are entitled to under the Settlement is: $. The amount stated above for the Gross Settlement Share may be increased, depending upon the number of Class Members who opt out of the Settlement and the final approval process. Also, this amount is allocated as thirty percent (30%) wages and seventy percent (70%) penalties and interest, and the wage-portion is subject to the employer and employee s share of applicable taxes and withholdings as such your payment will be reduced for these taxes and withholdings. You will be issued an IRS Form W-2 with respect to the portion that is allocated as wages, and an IRS Form 1099 for the portions that is allocated as penalties and interest. You are solely responsible for accurately reporting and paying taxes on your settlement proceeds. According to Essendant Co. s records: The estimated PAGA Settlement Share that you are entitled to under the Settlement is: $. If the amount stated above for the PAGA Settlement Share is $0, this means you are not a PAGA Settlement Class Member (i.e. you did not work for Essendant Co. as an hourly-paid or non-exempt employee in California during the period from February 17, 2016 to September 12, 2017) and you are not eligible to receive a PAGA Settlement Share. If the amount stated above is not $0, that means you are a PAGA Settlement Class Member and you are eligible to receive a PAGA Settlement Share, and the amount stated above may be increased, depending upon the number of PAGA Settlement Class Members who opt out of the Settlement and the final approval process. Also, this amount is allocated as 100% penalties. You will be issued an IRS Form 1099 for this portion. You are solely responsible for accurately reporting and paying taxes on your settlement proceeds. If you do not dispute the Compensable Workweeks listed on this Notice, you do not need to do anything. If the Settlement is granted final approval by the Court, you will be issued a settlement check by U.S. Mail, at the last known address that Essendant Co. has on file for you or any updated address that is obtained by the Settlement Administrator. Therefore, it is very important for you to make sure that the Settlement Administrator has your current mailing address. If you believe that the Compensable Workweeks that are attributed to you (as stated above) are incorrect, you may dispute this information by submitting a written dispute that clearly states (1) the case name and number, (2) your name, address, telephone number, and last four digits of your Social Security number and/or the Employee ID number, (3) your employment dates, and (5) a clear explanation of the number of Compensable Workweeks that you contend that you worked, along with (6) supporting documentation, if available, to Rust Consulting, Inc., (the Settlement Administrator ). Any such dispute must be mailed to Rust Consulting, Inc., postmarked on or before July 30, 2018 at the designated address for Rust Consulting, Inc. or faxed to Rust Consulting, Inc. at the designated fax number for Rust Consulting, Inc. listed below: Fax Number: (888)

3 Upon timely receipt of any such dispute, Rust Consulting, Inc. will consult with the Parties regarding the dispute in order to determine whether an adjustment is warranted. The Settlement Administrator shall determine the eligibility for, and the amounts of, any Gross Settlement Shares and/or PAGA Settlement Shares under the terms of the Settlement Agreement. IV. SETTLEMENT FORMULA Under the Settlement, the maximum amount to be paid by Essendant Co. is $3,000, ( Gross Settlement Fund ). The Gross Settlement Fund includes employer s share of taxes and withholdings with respect to the wage-potion of the Settlement Shares. The Net Settlement Amount will be the Gross Settlement Fund less the following deductions which are subject to approval by the Court: A. Attorneys Fees and Costs: Class Counsel will seek attorneys fees in an amount not to exceed $1,050, as reasonable compensation for the work Class Counsel performed in this Lawsuit, and will continue to perform through settlement finalization, plus reimbursement of actual litigation cost and expenses not to exceed $40,000.00, from the Gross Settlement Fund. Class Counsel has been prosecuting the Lawsuit on behalf of Plaintiffs and the Settlement Class on a contingency fee basis (that is, without being paid any money to date) and has been paying all litigation costs and expenses. This payment, if approved by the Court, will be made from the Gross Settlement Fund. B. Settlement Administration Costs: A request will be made to the Court for payment of the costs of the administration of the settlement by Rust Consulting, Inc. (the Settlement Administrator ), which is currently estimated to be approximately $16, This payment, if approved by the Court, will be made from the Gross Settlement Fund. C. Class Representative Service Awards: Plaintiff Patrick Sinay and Plaintiff Marques Jackson will seek Class Representative Service Awards of up to $8, and $5, each, respectively, from the Gross Settlement Fund, to compensate them for their services on behalf of the Class and in assisting with the prosecution of the Lawsuit. These payments, if approved, will be made from the Gross Settlement Fund and will be made in addition to Plaintiffs Settlement Shares and/or PAGA Shares. D. PAGA Payment: Under the Settlement the amount of $100, from the Gross Settlement Fund has been allocated toward penalties pursuant to the California Private Attorneys General Act ( PAGA ), California Labor Code section 2698, et seq., of which seventy-five percent (75%), or $75,000.00, will be paid to the California Labor and Workforce Development Agency and twenty-five (25%), or $25,000.00, will be distributed to PAGA Settlement Class Members. This payment, if approved by the Court, will be made from the Gross Settlement Fund. The Net Settlement Amount will be paid out to Settlement Class Members, by the Settlement Administrator, pursuant to a Court-approved plan of distribution as described in the Settlement Agreement. Pursuant to the Court-approved formula for allocation of the Net Settlement Amount, your estimated share of the Net Settlement Amount ( Gross Settlement Share ) will be determined by your Compensable Workweeks. If you do not submit a valid and timely request for exclusion, the Settlement Administrator will calculate the total Compensable Workweeks for all Settlement Class Members, your Compensable Workweeks will then be divided by the total Compensable Workweeks for all Settlement Class Members, resulting in your Payment Ratio. Your Payment Ratio will then be multiplied by the Net Settlement Amount to result in your Gross Settlement Share. If you are PAGA Settlement Group Member, your PAGA Share will be determined by your Compensable Workweeks. The Settlement Administrator will calculate the total Compensable Workweeks for all PAGA Settlement Class Members. Your Compensable Workweeks will then be divided by the total Compensable Workweeks for all PAGA Settlement Class Members, resulting in your PAGA Payment Ratio. Your PAGA Payment Ratio will then be multiplied by the PAGA Settlement Amount to calculate your PAGA Settlement Share. Amounts paid by Essendant Co. to any Class Members pursuant to this Settlement shall be deemed not to be pensionable earnings and shall not have any effect on the eligibility for, or calculation of, any of the employee benefits (e.g., vacations, holiday pay, retirement plans, etc.) of the Class Members. A. TO OBTAIN YOUR SETTLEMENT PAYMENT. V. YOUR OPTIONS UNDER THE SETTLEMENT This Settlement is a non-reversionary settlement with no claims procedure. Therefore, Class Members do not need to make a claim in order to obtain their share of the Settlement; Class Members who do not opt out or request exclusion from the Settlement are eligible to receive their share of the Settlement

4 B. REQUESTING EXCLUSION FROM THE SETTLEMENT Any Class Members who do not wish to participate in the Settlement may exclude themselves (i.e., opt out ) by submitting a written request for exclusion ( Request for Exclusion ). The Request for Exclusion must contain (1) the case name and number, (2) the name, address, telephone number, and the last four digits of the Social Security number and/or the Employee ID number of the Class Member; (3) a clear statement that the Class Member wishes to exclude him or herself from the Settlement; and (4) the Class Member s signature or the signature of the Class Member s legal representative. Requests for Exclusion must be returned to the Settlement Administrator by mail or fax, at the mailing address or fax number stated above (in section III) no later than July 30, If submitting the Request for Exclusion by mail, it must be postmarked by July 30, 2018, and if submitting by fax, it must bear a fax stamp by the same date. If the Court grants final approval of the Settlement, any person who submits a complete and timely Request for Exclusion that is received by Rust Consulting, Inc., shall be barred from participating in the Settlement, and shall receive no monetary benefits from the Settlement. Any such person, at their own expense, may pursue any claims he or she may have against Essendant Co. C. OBJECTING TO THE SETTLEMENT Class Member who do not opt out of the Settlement ( Settlement Class Members ), and who believe that the Settlement is unfair, may object to the Settlement. In order to object, you must submit a written statement of objection ( Notice of Objection ) with the Settlement Administrator. A Notice of Objection must state (1) the case name and number, (2) name, address, and telephone number of the Class Member; (3) the dates of employment of the Class Member; (4) the last four digits of the Class Member s Social Security number and/or the Employee ID number; (4) the basis for the objection; and (5) if the Class Member intends to appear at the Final Approval Hearing. If the Court rejects the Class Member s objection, the Class Member will still be bound by the terms of the Settlement and release of the Released Claims. To be valid and effective, any Notices of Objection must be mailed or faxed to the Settlement Administrator no later than July 30, 2018 at the address or fax number listed below: Fax Number: (888) Settlement Class Members who submit a Notice of Objection may appear at the Final Approval Hearing at their own expense, either in person or through their own attorney. Notwithstanding the foregoing, the Court will hear any Class Member who appears the Final Approval Hearing and asks to speak, regardless of whether he or she has complied with written objection procedures. Settlement Class Members who object are responsible for their own fees and costs relating to their objection and/or any appeals. The Final Approval Hearing, at which the Court will be asked to approve the Settlement, is scheduled for September 28, 2018, at 11:00 a.m. in Department 11 of the Los Angeles County Superior Court, 312 North Spring Street, Los Angeles, California 90012, or such other later date as the Court may order. D. CHANGE OF ADDRESS If you move after receiving this Notice, if it was misaddressed, or if for any reason you want your payment or future correspondence concerning this Settlement to be sent to a different address, you must provide your updated or preferred address to Rust Consulting, Inc. VI. RELEASED RIGHTS AND CLAIMS Upon the final approval by the Court of the Settlement, and except as to such rights or claims as may be created by the Settlement Agreement, Plaintiffs and the Settlement Class Members shall waive, relinquish, settle, and release Defendant and each of its predecessors in interest, successors in interest, parents, subsidiaries, affiliated companies, shareholders, directors, officers, managers, employees, attorneys, and agents ( Released Parties ) from all claims pled or that could have been pled based on the factual allegations in the Operative Complaint and any amendments thereto, including but not limited to all of the following claims: (a) failure to provide proper meal periods and associated premium pay; (b) failure to provide proper rest breaks and associated premium pay; (c) failure to properly pay all straight-time wages, minimum wages, and overtime wages due; (d) untimely final pay and associated waiting time penalties for untimely final pay; (e) improper and/or inaccurate wage statements; (f ) failure to pay all wages during employment; (g) failure to keep complete or accurate payroll records; (h) - 4 -

5 failure to reimburse necessary business expenses; (i) unfair business practices; (j) penalties and remedies under the Private Attorneys General Act ( PAGA ); (k) any other claims or penalties under the wage and hour laws pleaded in the Operative Complaint; and (l) all damages, penalties, interest, attorneys fees and/or costs, and other amounts recoverable under said causes of action, as to the facts alleged in the Operative Complaint, under California law, to the extent permissible, including but not limited to the California Labor Code, the applicable Wage Orders and the California Unfair Competition Law, for the period from February 17, 2013 to September 12, 2017 ( Released Claims ). The res judicata effect of the Judgment will be the same as that of the release of Released Claims. VII. FINAL APPROVAL HEARING The Court will hold a Final Approval Hearing in Department 11 of the Los Angeles Superior Court, Spring Street Courthouse, 312 North Spring Street, Los Angeles, California 90012, on September 28, 2018, at 11:00 a.m. to determine whether the Settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve the requests for Class Counsel Award, Settlement Administration Costs, and Class Representative Service Awards. The hearing may be continued without further notice to Class Members. It is not necessary for you to appear at this hearing. Any Settlement Class Member is welcome to attend the hearing, although no appearance is required. Settlement Class Members have a right to appear at the Final Approval Hearing at their own expense, either in person or through their own attorney. VIII. ADDITIONAL INFORMATION The above is a summary of the basic terms of the Settlement. For the precise terms and conditions of the Settlement, you should consult the detailed Joint Stipulation of Class Action and PAGA Settlement and Release and Amendment No. 1 to Joint Stipulation of Class Action and PAGA Settlement and Release (together, Settlement Agreement ) which are on file with the Court. The pleadings and other records in this litigation, including the Settlement Agreement, may be examined at any time online at the Settlement Administrator s website For more information, you may also contact the Settlement Administrator or Class Counsel: Class Counsel: Edwin Aiwazian Lawyers for Justice, PC 410 West Arden Avenue, Suite 203 Glendale, California Telephone: (818) Settlement Administrator: Fax Number: (888) Telephone: (877) PLEASE DO NOT TELEPHONE THE COURT OR THE OFFICE OF THE CLERK FOR INFORMATION REGARDING THIS SETTLEMENT