As a current or former non-exempt PPG employee, you may be entitled to receive money from a class action settlement.

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1 NOTICE OF PROPOSED CLASS ACTION SETTLEMENT AND HEARING DATE FOR COURT APPROVAL Penaloza, et al., v. PPG Industries, Inc., Case No. BC As a current or former non-exempt PPG employee, you may be entitled to receive money from a class action settlement. The California Superior Court, County of Los Angeles authorized this notice. This is not a solicitation from a lawyer. If you worked as a non-exempt employee for PPG, Industries, Inc., between October 12, 2007 and September 4, 2012 you may be entitled to receive a payment from this Class Action Settlement. A proposed settlement of $1,300,000 will be used to pay claims to non-exempt production and maintenance employees who worked for PPG Industries, Inc. ( Defendant ) between October 12, 2007 and September 4, 2012 at any of its facilities located in Sylmar, Mojave and Valencia. The settlement resolves a lawsuit over whether Defendant properly paid wages for all hours worked to its current and former non-exempt production employees and whether Defendant properly provided meal and rest breaks to those employees. It also avoids the costs and risks from continuing the lawsuit, pays money to persons like you, and releases PPG from alleged liability. The Court has not made a determination of the validity of the claims. Defendant denies any and all liability arising from any of the claims and contends that at all relevant times they properly compensated its employees and did nothing wrong. Lawyers for the Class will ask the court to award up to $433,333 to be paid out of the settlement as attorneys fees for investigating the facts, litigating the case, and negotiating the settlement, as well as reasonable costs up to $10,000 incurred during the case. They also will ask the Court to approve a total of $20,000 in incentive payments to the Representative Plaintiffs who assisted in litigating this case for the benefit of all Class Members and for providing a general release. Please read this Notice carefully. Your legal rights are affected by it. YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT SUBMIT A CLAIM FORM OPT OUT OBJECT GO TO A HEARING DO NOTHING The only way to get a payment from this lawsuit. Get no payment and retain your legal rights. Submit a Claim and write to the Court about why you do not like the settlement. Submit a Claim and ask to speak in Court about the fairness of the settlement, if you timely file and serve a written objection. Get no payment. Give up your rights. 1

2 BASIC INFORMATION 1. Why did I get this notice package? PPG s records indicate you worked as a non-exempt employee between October 12, 2007 and September 4, You were sent this notice because you have a right to know about a proposed settlement of a class action lawsuit, and about all of your options before the Court decides whether to finally approve the settlement. If the Court approves the settlement and after any objections and appeals are resolved, an administrator appointed by the Court will make the payments that the settlement allows. This package explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. The Court in charge of the case is the California Superior Court for the County of Los Angeles. The persons who sued are called Plaintiffs, and the organization they sued, PPG, is called Defendant. 2. What is this lawsuit about? This Representative Plaintiffs allege that Defendant failed to properly pay the correct amount of wages to its current and former non-exempt production and maintenance employees ( Class Members ) from October 12, 2007 to September 4, 2012 ( Class Period ), including wages for missed rest and meal breaks and wages for all hours worked. The Representative Plaintiffs also allege that Class Members were not paid all wages each pay period, that Class Members were not paid all wages owed upon separation from employment, that Defendant failed to furnish timely and accurate wage statements; that PPG engaged in unfair competition; and that upon leaving PPG they did not receive timely and/or fully all money owed. PPG denies and contends that none of the claims alleged by the Plaintiffs had or have any merit. 3. Why is this a class action? In a class action, one or more people called Class Representatives sue on behalf of people who have similar claims. All these people comprise a Class and are referred to as Class Members, except those who decide to exclude themselves from the Class. One court resolves the issues for all Class Members. 4. Why is there a settlement? The parties disagree on the probable outcome of the case with respect to liability, damages and how much money could be recovered if the Representative Plaintiffs won at trial. Defendant believes that the Representative Plaintiffs would not prevail if this case went to trial. The Court has not decided in favor of the Representative Plaintiffs or Defendant. There has been no trial in this case. Instead, both sides recognize the risks, expenses, and disruption that are associated with continued litigation, and they have therefore chosen to resolve their differences by entering into a settlement. By doing so the parties can avoid the cost of a trial, yet members of the Class are still entitled to receive payments if they comply with the instructions in this Notice. The parties entered into this settlement after arms-length negotiations while using the services of an experienced and neutral mediator. The Representative Plaintiffs and Class Counsel believe that the settlement is fair and reasonable and in the best interest of all Class Members. 5. What is a class action settlement? The Court must approve the terms of the settlement described below as fair and reasonable to the class. Once approved, the settlement will affect all members of the class, whether or not a class member submits a claim form or objects to the settlement. This notice explains your legal rights, the terms of the settlement, what you must do to participate, and the amount of money you may get. Please read this entire notice carefully. 2

3 6. Will PPG retaliate against me for participating in the settlement? No. PPG is not permitted to retaliate against you for participating in the settlement or the lawsuit. Rather, PPG encourages all present and former non-exempt employees to submit a timely claim and receive their fair share of the Net Settlement Fund. WHO IS IN THE SETTLEMENT? To see if you will get money from this settlement, you first have to decide if you are a Class Member. 7. How do I know if I am part of the settlement? The judge decided that everyone who fits the following description is a Class Member: All non-exempt hourly production or maintenance employees (regardless of whether paid by salary or an hourly basis) employed by PPG in any of its facilities located in Sylmar, California, Mojave, California or Valencia, California at any time between October 12, 2007 and September 4, Are there exceptions to be included? You are not a Class Member if you were not employed by PPG as a non-exempt hourly production or maintenance employee during the dates identified. You can also be excluded from this settlement by opting out of this settlement and you will not be a Class Member. If during your employment with PPG, you held any position that was exempt from overtime or which otherwise falls outside of the above definition, then the workweeks that you worked while in the exempt position(s) will not be used in computing your share of the settlement. 9. I m still not sure if I am included, what should I do? If you are still not sure whether you are included, you can fill out and return the Claim form to see if you qualify. 10. What does the settlement provide? THE SETTLEMENT BENEFITS WHAT YOU GET PPG has agreed to create a settlement fund of up to $1,300,000 to settle this claim. Out of the settlement fund, the Class Representatives Penaloza and Del Campo will ask for additional compensation for their services as Class Representatives ($10,000 each). Class Counsel will ask for $443,333 for attorneys fees and costs, and the Claims Administrator will ask for approximately $20,000 for administering the settlement. A total of $5,000 of the settlement will be paid under the Private Attorneys General Act ( PAGA ), of which $3,750 will be paid to the State of California Labor and Workforce Development Agency and $1,250 is additional money that will be distributed among the Class Members who submit a valid Claim Form. After these amounts are deducted, there will be approximately $812,917 (the Net Settlement Amount ) available for distribution to Class Members who have submitted a valid Claim Form, based on the number of weeks they worked for PPG as a non-exempt production and maintenance employee during the Class Period. 3

4 11. How much will my payment be? Your Claim Form enclosed with this Notice includes the approximate amount that you would receive. Your share of the fund will depend on the number of valid Claim Forms that Class Members send in and how many workweeks you worked as a non-exempt production and maintenance employee for PPG. Here s how it works: The funds payable to the class will be divided up pro rata using the following workweek credit formula: a. Each Class Member employed at PPG s Sylmar site will receive 1.75 points for each week employed during the class period, unless the employee was on a leave of absence for that workweek. b. Each Class Member employed at PPG s Valencia and Mojave sites will receive 1 point for each week employed during the class period, unless the employee was on a leave of absence for that workweek. c. Employees who separated during the class period will receive 1.25 additional points to compensate them for their waiting time penalty claim. Based upon the information provided by PPG, the Claims Administrator will calculate the total number of Compensable workweeks worked by the Class Members during the Class Period (October 12, 2007 through September 4, 2012). The workweeks will then be multiplied times the (above) location assigned points. For each person who separated during the Class Period an additional 1.25 points will be added to the total points. All of the credits (points) of every Class Member will be added together. The Total credits will be divided into the Net Settlement Amount (approximately $812,917). The number obtained becomes the value for each credit (point). Your personal accumulated credits would then be multiplied by the value of each credit. The parties have agreed that at least 65% of the Net Settlement Amount will be paid to Class Members even if less than that amount is claimed by Class Members. If this should occur it could result in you receiving additional money. If there is any dispute about the number of workweeks worked at the locations where you worked, PPG s records control, unless the Class Member can provide persuasive documentary evidence to the contrary, as determined by the Claims Administrator. The number of workweeks that PPG s records show that you worked as a Non-exempt employee during the Class Period is listed on your Claim Form along with the locations where you worked. You may have worked more than the dates shown, but the only time that is relevant to this settlement is the time period between October 12, 2007 and September 4, If you worked for PPG for any part of a workweek as a non-exempt production and maintenance employee, that workweek will be counted toward your share of the settlement. Your Claim amount will be calculated based on 60% wages, for which you will receive an IRS Form W-2, and 40% will be interest and penalties, for which you will receive an IRS Form Tax withholdings will be made from your wage payment only. You are responsible for paying all taxes on any amount you receive. This Notice is not tax advice and you should consult your tax advisor. The parties and counsel are not responsible for tax advice. Checks will be valid for 180 days. 4

5 12. How can I get a payment? HOW YOU GET A PAYMENT SUBMITTING A CLAIM FORM To qualify for payment, you must send in the Claim Form that is attached to this Notice. You may also get a Claim Form by calling the Claims Administrator at 1 (888) or you may visit the claims website at to view a copy of the Notice and to receive instructions on how to receive a Claim Form. Read the instructions carefully and fill out the form, sign it, and return it by fax, P.D.F. attachment or U.S. mail postmarked no later than February 25, Late claims will not be considered, absent good cause. 13. When would I get my payment? The Court will hold a hearing on April 19, 2013, to decide whether to approve the settlement. If the Court approves the settlement, after that there may be appeals if anyone objects. It is always uncertain when these objections and appeals can be resolved, and resolving them can take time. To check on the progress of the settlement, call the Claims Administrator at 1 (888) , or contact Class Counsel (see 18, 24 for contact info.). Please be patient. 14. What am I releasing? Once the settlement is finally approved, you cannot sue PPG, nor can you continue to sue, or be part of any other lawsuit against PPG about any of the claims that were made or could have been made in the Penaloza case. As you are a Class Member, it also means that all of the Court s orders apply to you and legally bind you. You are releasing the claims covered by the settlement agreement approved by the Court in this case even if you do not submit a Claim Form. The release portion of the settlement agreement approved by the Court states, in relevant part (note that as the term is used in this agreement, term Released Parties means you and any other Class Members who are receiving this Notice): Upon the final approval of the Settlement by the Court, and except as to such rights or claims as may be created by this Agreement, each member of the Settlement Class (other than opt-outs), regardless of whether he or she has timely submitted a Claim Form, will fully and forever release and discharge PPG, including its former and present parent companies, subsidiaries, divisions, concepts, related or affiliated companies, shareholders, officers, directors, employees, partners, agents, representatives, attorneys, insurers, successors and assigns, and any individual or entity that could be jointly liable with any of the foregoing ( Released Parties ) forever completely and irrevocably release and discharge the Released Parties from any claims, causes of action, damages, wages, benefits, expenses, penalties, debts, liabilities, demands, obligations, attorneys fees, costs, and any other form of relief or remedy in law, equity, or whatever kind or nature, whether known or unknown, suspected or unsuspected, arising from: (1) the Action and any claims arising out of, or related to the actual claims asserted or factual allegations in the Action including all claims under the California Labor Code, Industrial Welfare Commission Wage Orders, and the California Business and Professions Code, claims under PAGA, claims for restitution and other equitable relief, liquidated damages, punitive damages, waiting time penalties, penalties of any nature whatsoever, other compensation or benefits; and (2) any alleged wage and hour violations that were made or could have been made based on the actual claims asserted or factual allegations in the Action, whether premised on statute, contract, tort or other theory of liability under state or local law, by any Class Member against the Released Parties (collectively, the Released Claims ). The release will include any claims arising from or that may have arisen from the Parties respective prosecution and/or defense of this litigation. The release will apply to the Covered Time Frame and includes any cause of action alleged in or which could have been alleged in the Complaint or any Amended Complaint that may be filed prior to the approval of this settlement. All Released Claims are released for all Class Members 5

6 regardless of whether they submit a Claim or receive any payment under the Settlement unless they Opt- Out of the Settlement. The Released Claims do not include claims for workers compensation benefits or any of the claims that may not be released by law or that are not based on the facts, alleged in Plaintiffs filed complaint. Through this release, you and other Class Members fully, finally, and forever compromise, settle, and discharge all known and unknown claims covered by the settlement agreement approved by the Court. Accordingly, you and other Class Members expressly, knowingly, and voluntarily waive any and all rights and benefits conferred by California Civil Code section 1542 with respect to all claims covered by the settlement and you do so understanding and acknowledging the significance and consequence of such specific waiver of California Civil Code section 1542, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. This means that if the facts relating to the settlement agreement approved by the Court are later found to be different than any assumptions made during the settlement discussions, you and the other Class Members have assumed that risk and have accepted the agreement. 15. How can I opt out of this settlement? HOW YOU OPT OUT In order to be excluded you can opt out of this settlement and retain your rights. To do so, you must submit in writing your signed and dated statement that you want to be excluded from the settlement. Your written statement must be mailed to the third party administrator, Penaloza v. PPG Industries, Inc., c/o GCG, P.O. Box 35038, Seattle, WA , and be postmarked no later than February 25, 2013 or it will not be considered and you will still remain a settlement member of the Class and be bound by the settlement. If you want to be excluded do not also submit a claim form. If you do then your claim form will be considered and your written exclusion statement (opt-out) will be disallowed. 16. Do I have a lawyer in this case? THE LAWYERS REPRESENTING YOU The Court has appointed Neal J. Fialkow, Esq., and Law Office of Neal J. Fialkow, Inc. and Sahag Majarian, II, Esq. and Law Office of Sahag Majarian, II to represent you and other Class Members. These lawyers are called Class Counsel. They will be compensated from the Settlement as discussed in this Notice. If you want to be represented by your own lawyer, you may hire one at your own expense. 17. How will the lawyers be paid? Class Counsel will ask the Court to approve payment of up to $443,333 to them for attorneys fees and costs. The fees will pay Class Counsel for investigating the facts, litigating the case and negotiating and finalizing the settlement. PPG has agreed not to oppose Class Counsel s application for these fees and expenses. The Court may choose to award less than this amount. All other payments to Plaintiffs, to the State of California, and to the class action administrator come from the balance of the settlement. The Net Settlement Fund is distributed to those who submitted valid Claim Forms according to the number of workweeks they worked in a non-exempt position. 6

7 OBJECTING TO THE SETTLEMENT You can tell the Court that you do not agree with the settlement or some part of it. 18. How do I tell the Court that I do not like the settlement? You can object to the settlement if you do not like it. You can give reasons why you think the Court should not approve the settlement and the Court will consider your views. To object, and to have the Court hear your views, you must complete the enclosed claim form and also send a letter saying that you object to the Penaloza, et al., v. PPG settlement and give your reasons. Be sure to include your name, address, telephone number, your printed and signed name, and provide both the legal and the factual reasons you object to the settlement. Mail the objection to each of these three different places postmarked no later than January 25, You may only object to the settlement if you submit a Claim Form. COURT CLASS COUNSEL DEFENSE COUNSEL Los Angeles County Superior Court Dept North Hill Street Los Angeles, CA Neal J. Fialkow Law Office of Neal J. Fialkow, Inc. 215 N. Marengo Ave., 3 rd Fl Pasadena, CA Sahag Majarian, II, Law Offices of Sahag Majarian, II, Ventura Boulevard Tarzana, CA Michelle Heverly Littler Mendelson 50 West San Fernando Street, 15 th Fl San Jose, CA THE COURT'S FAIRNESS HEARING The Court will hold a hearing to decide whether to approve the settlement. You may attend and you may ask to speak, but you do not have to. You may only speak at the hearing if you follow the instructions below. 19. When and where will the Court decide whether to approve the settlement? The Court will hold a Fairness Hearing at 8:30 a.m. on April 19, 2013, at the Los Angeles County Superior Court, Dept. 58, 111 North Hill Street, Los Angeles, CA At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections and they have been properly lodged, the Court will consider them. The Judge will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Class Counsel. At or after the hearing, the Court will decide whether to approve the settlement. We do not know how long this decision will take. 20. Do I have to come to the hearing? No. Class Counsel will answer questions that the Judge may have. But, you are welcome to come at your own expense. If you send an objection, you do not 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 your own lawyer to attend, but it is not required. 7

8 21. May I speak at the hearing? You may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your Notice of Intention to Appear in the Penaloza, et al., vs. PPG settlement. Be sure to include your name, address, telephone number, and your printed and signed name. Your Notice of Intention to Appear must be postmarked no later than January 25, 2013, and be sent to the Clerk of the Court, Class Counsel, and Defense Counsel, at the three addresses listed above. You will not be able to speak unless you timely file a Notice of Intention to Appear, unless the Court finds good cause to permit you to speak. 22. What happens if I do nothing at all? IF YOU DO NOTHING If you do nothing, you will not receive any money from this settlement, but you will still be releasing your claims against PPG. You will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against PPG about the legal issues in this case ever again. In order to get money from this settlement, you must submit the Claim Form that came with this notice (or a replacement form) in the time provided. 23. Are there more details about the settlement? GETTING MORE INFORMATION This notice summarizes the proposed settlement. You may call or contact Class Counsel or the Claims Administrator if you would like more information about the case. You may also go to the Court Clerk s office during regular business hours and view the Court file. 24. How do I get more information? You may call 1 (888) or write the PPG Claims Administrator, c/o GCG, P.O. Box 35038, Seattle, WA PLEASE DO NOT CONTACT THE CLERK OF THE COURT, THE JUDGE OR PPG WITH INQUIRIES. This Notice has been approved by the Judge Rolf M. Treu of the Superior Court of California for the County of Los Angeles. 8

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