SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SOMEWHERE ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

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1 1 1 Harvey C. Berger (SBN POPE & BERGER 0 West "C" Street, Suite 0 San Diego, California 1 Telephone: (1-1 Facsimile: (1 - Marc D. Roberts (SBN LAW OFFICES OF MARC D. ROBERTS & ASSOCIATES 01 Centrelake Drive, Suite 0 Ontario, California Telephone: (0 0-1 Attorneys for Plaintiffs INDIVIDUAL PLAINTIFFS and present and former employees of EMPLOYER SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SOMEWHERE INDIVIDUAL PLAINTIFFS, on behalf of themselves and all other employees similarly situated, v. Plaintiffs, EMPLOYER, a corporation; INDIVIDUAL DEFENDANT ONE, an individual; INDIVIDUAL DEFENDANT TWO, an individual; and DOES 1 through 00 inclusive, Defendants. Case No. STIPULATION FOR ENTRY OF JUDGMENT AND DISMISSAL 1

2 IT IS HEREBY STIPULATED by and between Plaintiffs CLASS REPRESENTATIVE ONE, CLASS REPRESENTATIVE TWO, CLASS REPRESENTATIVE THREE, and CLASS REPRESENTATIVE, on behalf of themselves and all other employees similarly situated ( Plaintiffs or The Class, and Defendants EMPLOYER, INDIVIDUAL DEFENDANT ONE, and INDIVIDUAL DEFENDANT (hereafter collectively referred to as Defendants, that judgment may be entered in the above entitled action in favor of The Class, and against Defendants as indicated below: The parties herein agree and acknowledge that the Court shall, upon Final Approval of the settlement of this Class Action, dismiss the above-referenced case without prejudice, reserving the Court's power and jurisdiction to set aside the dismissal and order entry of judgment upon Plaintiffs showing of a default by Defendants in any of the terms or conditions set forth herein. Defendants shall immediately consent to entry of said judgment by executing the final Judgment in the form attached hereto as Exhibit A (the Judgment and delivering the original to Plaintiffs through their attorneys, Pope & Berger. WHEREAS: Plaintiffs filed a Complaint in the Superior Court of the State of California in and for the County of Somewhere, seeking damages for, inter alia, minimum wage violations pursuant to Labor Code, and 1, and California Industrial Welfare Commission Order -0, California Code of Regulations, Title ; failure to pay overtime in violation of Labor Code and and California Industrial Welfare Commission Order -0, California Code of Regulations, Title ; improper employer deductions for business expenses in violation of California Industrial Welfare Commission Order -0, California Code of Regulations, Title and Labor Code and 1; and ( violation of Business and Professions Code 0 which prohibits unfair business practices, such as unlawful employment compensation in violation of wage and hour orders and the Labor Code. The case was certified as a class action on June 1, 1. In the event of a bankruptcy filing, by Defendants, or each of them, Defendants

3 EMPLOYER and INDIVIDUAL DEFENDANT ONE, and each of them, admit that they willfully failed to pay Plaintiffs minimum wage, as required by Labor Code,, 1, failed to pay overtime to Plaintiffs as required by Labor Code, and by virtue of failing to so pay employees, breached their fiduciary duty to Plaintiffs, as follows: Admitted facts supporting the above contentions include, among others: Plaintiffs are current and/or former shuttle van driver employees of EMPLOYER; EMPLOYER is engaged in the business of transporting passengers to and from the Suburbia and Los Metropolis airports, hours a day, days a week. EMPLOYER operates vans which accommodate to passengers. Plaintiffs either are or were drivers of these to passenger shuttle vans. The gross vehicle weight for these vans is under,000 pounds; EMPLOYER provides its shuttle service by picking up passengers, who have made a reservation, at their homes or other location, and taking them to the airport or by picking up passengers at the airport and then taking the passengers to their home or other location. EMPLOYER compensated Plaintiffs based on a percentage of daily receipts less deductions for business expenses, such as gasoline. As a result, it is specifically admitted by Defendants that class members were frequently not paid minimum wage. Defendants were aware of the minimum wage, and that it applied to their employees; that Defendants assert that they specifically paid minimum wage to employees for up to eight hours per day, while knowing that employees regularly were scheduled for 1 hour shifts, or for 1-1 hour shifts; that Defendants intentionally did not pay minimum wage for all hours worked; that employees frequently were required to wait from 1 - hours per day for a van to use, and were not compensated at all for such waiting time; that employees were required to attend orientation and training for approximately four days each, and were never compensated for such training; that employees were compensated on the basis of a percentage of revenues collected each

4 day, and shorts were deducted from their paychecks; that employees were allocated gas expense in the amount of 1% of daily revenues collected each day, and if the cost of gas, which was primarily outside the employees control, exceeded the amount of 1%, that such excess was deducted from their paychecks, frequently reducing their total compensation below the minimum wage; that a jointly retained expert hired by Plaintiffs and Defendants concluded that the amount of underpayment due to minimum wage and overtime violations totaled approximately thirty four percent (% of total payroll, and that the amount of underpayment totaled $00,.00 during the relevant Class Period; that the jointly retained expert calculated that of the above amount of underpayment, that approximately eighty percent (0% was due to minimum wage violations, and that approximately twenty percent (0% was due to failure to pay overtime; that the jointly retained expert calculated that the amount of interest on the underpaid wages totaled $,.00 or $0,.00, depending on which analysis of double damages is used; that liquidated damages pursuant to Labor Code. totaled $0,.0; that Defendants were aware that these practices violated California law; that Defendants admit they violated a fiduciary duty to their employees by virtue of these practices, and violated Business and Professions Code 0, et seq. THEREFORE: 1. Plaintiffs shall have the right to file and enforce the Judgment, and Judgment may be entered in favor of Plaintiffs and against Defendants for the total sum of $1,, principal, (less any payments made as provided below after DATE, in the event of default in the terms herein. If all payments are made as provided below, no interest shall accrue. Plaintiffs shall file an entry of dismissal without prejudice against all Defendants, in all causes of action, in the above entitled matter. When and if the sum of $1,, is timely paid by Defendants, Plaintiffs shall file a dismissal with prejudice of the entire action in this matter against all Defendants.. This judgment shall not be entered provided Defendants pay to Plaintiffs the sum of $1,, as follows:

5 Defendants are to pay to Plaintiffs, at Pope & Berger, 0 West C Street, Suite 0, San Diego, California, payable to the Pope & Berger Attorney Client Trust Account, the amount of $00, by check, with payment due within fifteen (1 days of preliminary approval, and successive payments of $, on SECOND PAYMENT DATE, and starting on THIRD PAYMENT DATE, payments of $, per month on the last day of each month for a period of seven ( years.. Defendants may pay off the entire unpaid balance any time, without penalty, and, in addition, Defendants may pay off the entire amount due and owing by payment of the following amounts: $0, in full and final payment on or before PAYOFF DATE ONE, then between the period PAYOFF DATE TWO and PAYMENT DATE THREE, $0,000.00, then in each successive year, as of February th, the payoff amount shall increase by $0, All amounts stated in paragraphs or above, whichever is less, become immediately due and payable upon the sale of the EMPLOYER franchise or sale of the stock of EMPLOYER.. All payments are due by :00 p.m. on the due date. If a payment is due on a weekend or holiday, payment must be received on the first work day following the weekend or holiday. It shall be considered a material breach of this agreement if Defendants tender any check that is not immediately honored, for any reason whatsoever, when first negotiated. Time is of the essence of this agreement.. In the event of default by Defendants in the terms of this Stipulation, Plaintiffs are to give notice of the default by facsimile and certified mail to the following individuals at the following addresses: CORPORATE OFFICER

6 EMPLOYER ANOTHER OFFICER DEFENSE COUNSEL 1 DEFENSE COUNSEL 1 Major Boulevard, Suite,000 Metropolis, California XXXX Facsimile: DEFENSE COUNSEL DEFENSE COUNSEL Big Street, Suite Suburbia, California XXXX Facsimile: Notice will be deemed complete upon sending by facsimile and mailing. Defendants shall then have ten ( business days to cure the default. If the default is not cured, Plaintiffs may apply to the court with no further notice to set aside the dismissal entered herein and to request the entry of judgment. The application to set aside the dismissal for entry of judgment shall be made on Plaintiffs verified ex parte application without further notice of hearing.. Defendants expressly waive their right to notice and hearing, except as provided for in paragraph above, of any default of the terms of this Stipulation, provided, however that any payments made prior to the entry of the judgment shall be credited against the amount of the judgment.. Defendants further stipulate that Plaintiffs can foreclose on any and all security immediately upon default without filing any new action(s, and without waiving damages in excess of the security(s, as otherwise required by Code of Civil Procedure, et seq. Plaintiffs agree to first foreclose upon the assets of INDIVIDUAL DEFENDANT ONE or EMPLOYER in an effort to satisfy the claim; if those assets are insufficient then to foreclose upon the assets of INDIVIDUAL DEFENDANT TWO, but with respect to assets of INDIVIDUAL DEFENDANT TWO, to provide forty-five ( days notice. Defendants further

7 waive any requirements for any demand or notices.. The address for Defendants to give notice to Plaintiffs shall be as follows: Harvey C. Berger, Esq. POPE & BERGER 0 West C Street, Suite 0 San Diego, California 1 Telephone: (1-1 Facsimile: (1 - Marc D. Roberts, Esq. MARC D. ROBERTS & ASSOCIATES 01 Centrelake Drive, Suite 0 Ontario, California Telephone: (0 0-1 Facsimile: ( All payments shall be remitted by check, payable to the Pope & Berger Attorney Client Trust Account, to be received by Pope & Berger on the dates set forth above, until further notice to Defendants.. Each party shall bear its own attorney fees and costs, except in the event of default, the prevailing party in enforcement of this Stipulation will be entitled to recover attorneys fees and costs, and all costs occasioned by the default, including costs of administration. 1. Plaintiffs and Defendants stipulate that findings of fact and conclusions of law are hereby waived. 1. This Stipulation shall be binding upon and inure to the benefit of each of the parties to this Stipulation and their respective agents, affiliates, representatives, partners, directors, officers, employees, stockholders, predecessors, successors, heirs and assigns. 1. This Stipulation is executed concurrently with a Settlement and Release Agreement between the parties executing this Stipulation, the terms and conditions of which are incorporated herein by this reference, and a Motion for Preliminary Approval of Class Settlement. This Stipulation and the Agreement supersede any prior oral or written agreement between the parties hereto. 1. All parties agree to execute this Stipulation and the Settlement and Release Agreement via fax, and such facsimiles shall be deemed valid and binding; the originals to

8 be provided to Pope & Berger by mail. This Stipulation may be signed in counterparts, each of which shall be deemed an original, but all of which together constitute one and the same instrument. POPE & BERGER 1 1 Dated: By: Harvey C. Berger Attorneys for Plaintiffs MARC D. ROBERTS AND ASSOCIATES Dated: By: Marc D. Roberts Attorneys for Plaintiffs DEFENSE COUNSEL Dated: By: Defense Counsel 1 Attorneys for Defendants DEFENSE COUNSEL Dated: By: Defense Counsel Attorneys for Defendants

9 THE PARTIES TO THIS AGREEMENT UNDERSTAND THAT THIS STIPULATION PROVIDES FOR ENTRY OF JUDGMENT UPON DEFAULT AND WAIVE ANY RIGHT TO CONTEST SUCH ENTRY OF JUDGMENT IN THE EVENT OF DEFAULT EMPLOYER Dated: By: INDIVIDUAL DEFENDANT ONE Title: President Dated: By: INDIVIDUAL DEFENDANT ONE, an individual 1 Dated: By: INDIVIDUAL DEFENDANT TWO, an individual