Preview
10
ra
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
18CV334378
Santa Clara — Civil
SOPHIA BEHNIA, Bar No. 289318
PERRY K. MISKA, JR, Bar No. 299129
LITTLER MENDELSON, P.C.
333 Bush Street, 34th Floor
San Francisco, CA 94104
Telephone: (415) 433-1940
Email: sbehnia@littler.com
pmiska@littler.com
Attorneys for Defendant
SAGE INTACCT, INC.
Plaintiff's counsel listed on following page
Electronically Filed
by Superior Court of CA,
County of Santa Clara,
on 11/9/2020 4:02 PM
Reviewed By: R. Walker
Case #18CV334378
Envelope: 5266293
THE SUPERIOR COURT OF THE STATE OF CALIFORNIA
IN AND FOR THE COUNTY OF SANTA CLARA
THOMPSON LY, individually and on
behalf of other members of the general
public similarly situated,
Plaintiff,
vs.
SAGE INTACCT, INC., and DOES 1 to
10,
Defendants.
CASE NO. 18CV334378
CLASS ACTION—COMPLEX
ASSIGNED FOR ALL PURPOSES TO THE
HON. BRIAN C. WALSH—DEPT. 1
DECLARATION OF ELIZABETH
KRUCKENBERG REGARDING NOTICE
AND SETTLEMENT ADMINISTRATION
CASE NO. 18CV334378
DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT
ADMINISTRATION10
ra
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Edward J. Wynne (SBN 165819)
ewynne@wynnelawfirm.com
George Nemiroff (SBN 262058)
gnemiroff@wynnelawfirm.com
WYNNE LAW FIRM
80 E. Sir Francis Drake Blvd., Ste. 3G
Larkspur, CA 94939
Telephone (415) 461-6400
Facsimile (415) 461-3900
Bryan J. McCormack (SBN 192418)
bryan@mcclawfirm.com
MCCORMACK LAW FIRM
80 E. Sir Francis Drake Blvd., Ste. 3G
Larkspur, CA 94939
Telephone (415) 296-8420
Facsimile (415) 461-3900
Attorneys for Plaintiff
THOMPSON LY
a
CASE NO. 18CV334378
DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT
ADMINISTRATION10
ra
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
DECLARATION OF ELIZABETH KRUCKENBERG
I, Elizabeth Kruckenberg, declare under penalty of perjury as follows:
is I am the Director of Case Management at Phoenix Settlement Administrators (PSA),
the Court-appointed Class Action Settlement Administrator for Thompson Ly. v. Sage Intacct, Inc. 1
have personal knowledge of the facts stated herein and, if called upon to testify, I could and would
testify competently to such facts.
2. PSA was selected by the Parties to provide notice of the Settlement and class
administration duties in this action. Pursuant to the Settlement Agreement for this matter, PSA was
responsible for (i) preparing, printing, and mailing the Notice of Proposed Class Action Settlement
(herein referred to as the “Notice Packet”); (ii) responding to inquiries from Class Members; (iii)
determining the validity of opt-outs; (iv) calculating the Net Settlement Amount and the Individual
Settlement payments; (v) issuing the Individual Settlement Payment checks and distributing them to
Participating Class Members; (vi) issuing the payment to Class Counsel for attorneys’ fees and costs,
the Enhancement check to Named Plaintiff, and the employer/employee payroll taxes to the
appropriate taxing authorities; and (vii) such other tasks as set forth in the Agreement or as the Parties
mutually agree or as the Court orders.
3. On August 14, 2020, PSA received a data file from Defense Counsel that contained
names, last known mailing addresses, Social Security numbers, telephone numbers, dates of
employment, and job positions for each Class Member during the Class Period. The final mailing list
contained eighty-nine (89) Class Members.
4. On August 20, 2020, Defendant deposited $1,100,000.00 into the Qualified Settlement
Fund. The amount of interest earned to-date is $134.40.
5. On August 21, 2020, PSA conducted a National Change of Address (NCOA) search in
an attempt to update the class list of addresses as accurately as possible. A search of this database
provides updated addresses for any individual who has moved in the previous four (4) years and
notified the U.S. Postal Service of their change of address.
i CASE NO. 18CV334378
DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT
ADMINISTRATION10
ra
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
6. On August 21, 2020, PSA mailed the Notice Packet via U.S. first class mail, in English
to all eighty-nine (89) Class Members on the Class List. A true and correct copy of the mailed Notice
Packet is attached hereto as Exhibit A.
7. As of the date of this declaration, only one (1) Notice Packet has been returned to PSA.
The returned Notice Packet did not contain a forwarding address. PSA attempted to locate a current
mailing address using TransUnion TLOxp, one of the most comprehensive address databases available
for skip tracing. An updated address was obtained, and the Notice Packet was promptly re-mailed to
said Class Member via first class mail.
8. As of the date of this declaration, there are no undeliverable Notice Packets.
9. PSA has received one (1) Request for Exclusion (i.e. “Opt-Out’s”). The deadline for
Class Members to submit an “Opt-Out” request was October 6, 2020. The Opt-Out was submitted
by Annelise Hagmann.
10. PSA has received zero (0) Objections to the Settlement. The deadline for Class
Members to submit an “Objection” to the Settlement was October 6, 2020.
te There are no outstanding disputes.
12. The Net Settlement Fund of $706,695.00 available to pay Class Members was
determined by subtracting the Class Counsel attorneys' fees ($366,666.00), Class Counsel costs
payment ($13,389.00), Class Representative Enhancement Award ($7,500.00), and the Claims
Administrator costs ($5,750.00) from the Gross Settlement Fund ($1,100,000.00). Based upon the
calculations stipulated in the Settlement, the highest individual settlement payment to be paid will be
approximately $30,718.35, and the lowest individual settlement payment to be paid will be
approximately $216.33, with the average individual settlement payment to be paid being
approximately $8,030.63, without applicable taxes, withholdings, and employee garnishments.
13. PSA’s costs associated with the administration of this matter are $5,750.00. This
includes all costs incurred to date, as well as estimated costs involved in completing the settlement
distribution. A true and correct copy of the invoice from PSA is attached hereto as Exhibit B.
\
\\
4. CASE NO. 18CV334378
DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT
ADMINISTRATION10
ra
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
I declare under penalty of perjury of the laws of the State of California that the foregoing is
true and correct.
Executed this 9% day of November 2020, at Fullerton, California.
a CASE NO. 18CV334378
DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT
ADMINISTRATIONExhibit A«PSA_ID»
«Contact» ~
THOMPSON LY vy. SAGE INTACCT, INC.
Superior Court of the State of California, County of Santa Clara
Case No.: 18CV334378
If you are a current or former employee of Sage Intacct, Inc., formerly known as Intacct Corporation (“Sage
Intacct” or “Defendant”), a class action lawsuit may affect your rights and you may be entitled to benefits under
the settlement.
You are not being sued. A court authorized this notice. This is not a solicitation from a lawyer.
PLEASE READ THIS NOTICE CAREFULLY. IT CONTAINS IMPORTANT INFORMATION
ABOUT YOUR RIGHTS.
e This lawsuit involves a class defined as: all persons who are employed or have been employed as exempt
by Sage Intacct, Inc. under the job titles Sales Development Representative (“SDR”) and/or Corporate
Account Manager (“CAM”), in the State of California, during the Class Period. “Class Period” is defined
as 1) the period that a class member held the Sales Development Representative position from September
12, 2014 through July 31, 2018; and 2) the period that a class member held the Corporate Account
Manager position from September 12, 2014 through July 15, 2020.
e You are receiving this Notice because the records reflect that you may be a class member.
e Plaintiff Thompson Ly (‘Plaintiff’) alleges that Defendant misclassified the SDR and CAM positions as
salaried exempt as opposed to hourly non-exempt and therefore failed to properly compensate for all hours
worked (including minimum wage and overtime), failed to pay lawful wages upon termination or
resignation, and engaged in unfair business practices. Sage Intacct denies Plaintiff's claims, and asserts
that it has complied with all of its legal obligations to its employees.
¢ There has been a settlement that affects your rights. Although the Court has authorized the Parties to
provide this notice of the proposed settlement, the Court has expressed no opinion on the merits of
Plaintiff's claims or Sage Intacct’s defenses.
¢ You will not be penalized or retaliated against by Sage Intacct for participating in this settlement. If you
are currently employed by Sage Intacct, your employment will not be affected in any way. Current
employees of Sage Intacct who choose to participate in the settlement will not be required to resign and
can continue to work for Sage Intacct.
e You have several options available to you:
By doing nothing, you will receive a share of the settlement proceeds, and you will
give up any rights to sue Sage Intacct for claims pled or arising out of or reasonably
related to the transactions and occurrences pled in the Complaint, which are or could
be the basis of claims that Defendant misclassified the SDR and CAM positions as
exempt and therefore failed to compensate for all hours worked (including
minimum wage and overtime), failed to pay lawful wages upon termination or
resignation, and engaged in unfair business practices during the Class Period.
DO NOTHINGExclude yourself from this lawsuit. Keep your rights to file a separate claim against
ASK TO BE Sage Intacct.
AB La If you ask to be excluded, you will not receive a share of the settlement proceeds,
OUT) but you keep any rights you may have to bring your own suit against Sage Intacct
for the same legal claims in this lawsuit.
Object to the terms of this Settlement. If you object to the Settlement, you will still
OBJECT participate unless you also opt-out of the Settlement.
Your options are explained in this notice.
To opt out or object, you must act by October 6, 2020.
1. Why did I get this notice?
A proposed settlement has been reached in a class action lawsuit that was brought on behalf of Sage Intacct’s
employees. You have received this notice because Sage Intacct’s records indicate that you are a member of the
settlement class.
2. What is this lawsuit about?
This lawsuit was filed on September 12, 2018 on behalf of individuals who are employed or have been employed
as exempt by Sage Intacct, Inc. (formerly known as Intacct Corporation) under the job titles Sales Development
Representative and/or Corporate Account Manager, in the State of California, during the Class Period. “Class
Period” is defined as 1) the period that a class member held the Sales Development Representative position from
September 12, 2014 through July 31, 2018; and 2) the period that a class member held the Corporate Account
Manager position from September 12, 2014 through July 15, 2020. The operative complaint alleges class-wide
causes of action against Sage Intacct for misclassifying the SDR and CAM positions as salaried exempt as
opposed to hourly non-exempt and therefore failing to compensate for all hours worked (including minimum
wage and overtime) under Labor Code §§ 510 and 1194; failure to pay lawful wages upon termination or
resignation under Labor Code § 203; and unfair business practices under Business & Professions Code § 17200
et seq.
3. Has the Court decided who is right?
No. The Court has made no decision regarding the merits of Plaintiffs allegations or Defendant’s defenses.
4. Why did this case settle?
The Parties reached a settlement in order to avoid the risk, inconvenience and expense of further litigation.
Plaintiff and his attorneys believe the proposed settlement is fair, adequate and in the best interest of the class
members to whom it applies given the outcome of their investigation, and the consumption of time and resources
required in connection with further litigation. Although Defendant disputes Plaintiffs claims and asserts that it
has complied with all of its legal obligations toward its employees, Defendant has also concluded that further
litigation would be expensive and would divert management and employee time.
5. What are the terms of the settlement and how much will I receive?
The Gross Settlement Amount is $1,100,000. Under the proposed settlement, the following amounts will be
deducted before any payments are made to employees, subject to final approval by the Court:
-2-e Attorneys’ fees: $366,666.00
e Litigation Costs: $15,000.00
e Claims Administration Costs: $10,000.00
e Class Representative Service Award to Class Representative: $7,500.00
After these deductions, $700,834.00 is estimated to be available for payment to the class members receiving this
notice (“Net Settlement Fund”). These amounts may change.
Each class member’s Individual Settlement Payment shall be determined on a pro rata basis based upon the
number of workweeks during which he/she worked as exempt in California under the job titles Sales Development
Representative and/or Corporate Account Manager during the Class Period, in proportion to the total number of
workweeks worked by all Settlement Class Members as exempt in California under the job titles Sales
Development Representative and/or Corporate Account Manager during the Class Period.
All Individual Settlement Payments will be allocated as follows: 1/3 to settlement of wage claims, 1/3 to
settlement of claims for interest, and 1/3 to settlement of claims for statutory penalties.
According to Sage Intacct’s records, the total number of workweeks that you worked as an exempt Sales
Development Representative and/or Corporate Account Manager in California during the Class Period and your
estimated settlement amount based on these workweeks is as follows:
Workweeks Estimated Settlement Amount
«Total Weeks» «Est_Set_Amt»
If you disagree with this information and would like someone to look into the matter, please follow the procedure
below.
6. What if I disagree with the number of workweeks shown above?
If you believe the information in the notice is incorrect regarding the number of workweeks, you will need to
write a letter setting forth the number of workweeks that you believe are correct. You may attach any relevant
documentation in support thereof. You must mail your letter to:
Sage Intacct Settlement Administrator
c/o Phoenix Settlement Administrators
P.O. Box 7208
Orange, CA 92863
You must submit such information by October 6, 2020. Class Counsel and the Settlement Administrator will
work together in good faith and do their best to promptly resolve the dispute based on available records. In the
event they are unable to resolve any dispute under this Section, the Settlement Administrator shall review all
information, material and documents and make a decision regarding the dispute.
7. What do I have to do to receive a share of the settlement?
If you would like to receive an award under the terms of this settlement, you do not have to do anything. However,
it is advisable to confirm your current mailing address with the Settlement Administrator in order to ensure you
receive your settlement share. You will be covered by the release summarized in Section 8, below.8. What rights am I giving up?
The claims you will release by doing nothing are: any and all claims that are asserted in the operative complaint,
which could have been asserted based on the facts alleged in the complaint, or which are or could be the basis of
claims that Defendant misclassified the SDR and CAM positions as salaried exempt as opposed to hourly non-
exempt and therefore failed to compensate for all hours worked (including minimum wage and overtime) under
Labor Code Sections 510 and 1194; penalties pursuant to Labor Code Section 203; violation of Business &
Professions Code Sections 17200, et seqg., claims for restitution and other equitable relief, liquidated damages,
declaratory relief, interest or penalties, from September 12, 2014 through July 15, 2020.
9. What if I do not wish to be involved?
Anyone not wishing to participate in the settlement may exclude himself or herself (“opt out”) by completing,
signing, and mailing a letter indicating that they do not want to participate in the settlement to the Settlement
Administrator, Phoenix Settlement Administrators, at the following address by October 6, 2020.
Sage Intacct Settlement Administrator
c/o Phoenix Settlement Administrators
P.O. Box 7208
Orange, CA 92863
If your Request for Exclusion is postmarked after October 6, 2020, it will be rejected, and you will be a Settlement
Class Member and be bound by the settlement terms and release. Anyone who submits a timely and valid Request
for Exclusion shall not be deemed a Settlement Class Member and will not receive any payment as part of this
settlement. Such individuals will keep any right to sue Sage Intacct separately about the claims made in this
lawsuit.
10. What if I have an objection?
A class member may object to the settlement in writing or in person. Written objections and all supporting briefs
or other materials must be submitted to the Settlement Administrator no later than October 6, 2020. If your
objection is overruled at the Final Approval Hearing, you will receive an award and be bound by the terms of this
settlement unless you indicate otherwise.
Any class member may make an objection at the Final Approval Hearing with or without filing or serving any
written objection. The Class Member may appear personally or through an attorney, at his or her own expense, at
the Final Approval Hearing to present his or her objection directly to the Court. Any attorney who will represent
an individual objecting to this Settlement who has not filed a written objection must file a notice of appearance
with the Judge and serve Class Counsel and Defense Counsel no later than October 6, 2020. The Final Approval
and Fairness Hearing will be held in Dept. 1 of the Santa Clara County Superior Court, Downtown Courthouse,
located at 191 N. Ist Street, San Jose, California on December 4, 2020, at 9:00 a.m. (Pacific Time).
Due to the COVID-19 pandemic, hearings before the judge overseeing this case are currently being conducted
remotely with the assistance of a third-party service provider, CourtCall. If that remains the case at the time of
the final fairness hearing, class members who wish to appear at the final fairness hearing should contact class
counsel to arrange a telephonic appearance through CourtCall, at least three days before the hearing if possible.
Any CourtCall fees for an appearance by an objecting class member shall be paid by class counsel.11. Do I need a lawyer? Who are the lawyers in this case?
You do not need to hire your own lawyer because Class Counsel is working on your behalf. However, if you
want your own lawyer, you are free to hire one at your own expense.
The below are Class Counsel:
Edward J. Wynne (SBN 165819) Bryan J. McCormack (SBN 192418)
George ae Sou 262058) MCCORMACK LAW FIRM
80 E. Sir Francis Drake Blvd., Ste. 3G SOE oi crenci Drake Blvd Sic 3G
Larkspur, CA 94939 Larkspur, CA 94939
Telephone (415) 461-6400 Telephone (415) 925-5161
Facsimile (415) 461-3900 Facsimile (415) 461-3900
Email: ewynne@wynnelawfirm.com Email: bryan@bmeclaw.com
gnemiroff@wynnelawfirm.com
Attorneys for Plaintiff
THOMPSON LY
12. What happens next in the case?
The Settlement has only been preliminarily approved. The Court will hold a hearing in Dept. 1 of the Santa Clara
County Superior Court, Downtown Courthouse, located at 191 N. Ist Street, San Jose, California at December 4,
2020, at 9:00 a.m. (Pacific Time), to consider any objections and determine whether the settlement should be
finally approved as fair, reasonable, and adequate. The Court will also be asked to approve Class Counsel’s
request for attorneys’ fees and costs, Plaintiff's service award, and the costs of claims administration. The hearing
may be continued without further notice to you. It is not necessary for you to appear at this hearing.
13. How can I receive more information?
This notice is a summary of the basic terms of the settlement. For further information, you may telephone the
Sage Intacct Settlement Administrator, Phoenix Settlement Administrators at 1-800-523-5773, or Class Counsel
(listed above).
Please do not telephone the Court, the Office of the Clerk, or Sage Intacct’s counsel for information
regarding this settlement.Exhibit Bws ys
S24 PHOENI?M4
SARS
CLASS ACTION ADMINISTRATION SOLUTIONS
May 15, 2020
Case: TBD Opt-Out
Phoenix Contact: Jodey Lawrence
Contact Number: 949.566.1455
Email: Jodey@phoenixclassaction.com
CASE ASSUMPTIONS
Class Members
Opt Out Rate
Opt Outs Received
Total Class Claimants
Subtotal Admin Onl
90
2%
2
88
$5,750.00
Requesting Attorney: George R. Nemiroff
Firm: Wynne Law Firm
Contact Number: 415-461-6400
Email: gnemiroff@wynnelawfirm.com
Assumptions and Estimate are based on information provided by counsel. If class size changes, PSA will need to adjust this Estimate accordingly.
Estimate is based on.90 Class Members. PSA assumes class data will be sent in Microsoft Excel or other usable format with no or reasonable
additional formatting needed. A rate of $150 per hour will be charged for any additional analysis or programming.
Programming Manager $100.00 2 $200.00
Programming Database & Setup $100.00 2 $200.00
Toll Free Setup* $131.19 a $131.19
Call Center & Long Distance $1.50 io) $13.50
NCOA (USPS) 90 0.25 $22.50
Total $567.19
* Up to 120 days after disbursement
Notice Packet Formatting $100.00 2} $200.00
Data Merge & Duplication Scrub $0.15 90 $13.50
Notice Packet & Opt-Out Form $2.00 90 $180.00
Total $393.50
* Prices good for 90 days, Subject to change with the USPS Rate or change in Notice pages or Translation, if any.
20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx
Page | of 4 Confidential and ProprietaryS24 PHOENIA
CLASS ACTION ADMINISTRATION SOLUTIONS
Case Associate $50.00 3 $150.00
Skip Tracing Undeliverables $1.00 18 $18.00
Remail Notice Packets $2.00 18 $36.00
Estimated Postage $0.70 18 $12.60
Programming Undeliverables $50.00 B $150.00
Total $366.60
Programming Claims Database $100.00 3 $300.00
Non Opt-Out Processing $200.00 1 $200.00
Case Associate $55.00 4 $220.00
Opt-Outs/Deficiency/Dispute Letters $8.50 2 $19.13
Case Manager $75.00 3 $225.00
Total $964.13
Programming Calculations $100.00 2 $200.00
Disbursement Review $100.00 2 $200.00
Programming Manager $95.00 2 $190.00
QSF Bank Account & EIN $100.00 2 $200.00
Check Run Setup & Printing $100.00 3 $300.00
Mail Class Checks, W2 and 1099 * $2.00 88 $176.40
Estimated Postage Checks, W2 and 1099 $0.55 88 $48.51
Total $1,314.91
* Checks are printed on 8.5 x 11 in. sheets with W2/1099 Tax Filing
20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx
Page 2 of 4 Confidential and ProprietaryS,2 PIHOENI?4
CLASS ACTION ADMINISTRATION SOLUTIONS
Case Supervisor $100.00 2 $200.00
Remail Undeliverable Checks $1.55 a $13.67
(Postage Included)
Case Associate $55.00 2 $110.00
Reconcile Uncashed Checks $85.00 2 $170.00
Conclusion Reports $125.00 2 $250.00
Case Manager Conclusion $85.00 2 $170.00
Final Reporting & Declarations $115.00 2 $230.00
IRS & QSF Annual Tax Reporting * $1,000.00 1 $1,000.00
(State Tax Reporting Included)
Total $2,143.67
All applicable California State & Federal taxes, which include SUI, ETT, and SDI, and FUTA filings. Additional taxes are Defendant's responsibilty.
Estimate Total: $5,750.00
20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page 3 of 4 Confidential and ProprietarySyd PHOENI?A
CLASS ACTION ADMINISTRATION SOLUTIONS
Provisions: The case estimate is in good faith and does not cover any applicable taxes and fees. The estimate does not make any provision for any services or class
size not delineated in the request for proposal or stipulations. Proposal rates and amounts are subject to change upon further review, with Counsel/Client, of the
Settlement Agreement. Only pre-approved changes will be charged when applicable. No modifications may be made to this estimate without the approval of PSA
(Phoenix Settlement Administrators). All notifications are mailed in English language only unless otherwise specified. Additional costs will apply if translation into
other language(s) is required. Rates to prepare and file taxes are for Federal and California State taxes only. Additional charges will apply if multiple state tax filing(s)
is required. Pricing is good for ninety (90) days.
Data Conversion and Mailing: The proposal assumes that data provided will be in ready-to-use condition and that all data is provided ina single, comprehensive
Excel spreadsheet. PSA cannot be liable for any errors or omissions arising due to additional work required for analyzing and processing the original database. A
minimum of two (2) business days is required for processing prior to the anticipated mailing date with an additional two (2) business days for a National Change of
Address (NCOA) update. Additional time may be required depending on the class size, necessary translation of the documents, or other factors. PSA will keep counsel
apprised of the estimated mailing date.
Claims: PSA's general policy is to not accept claims via facsimile. However, in the event that facsimile filing of claims must be accepted, PSA will not be held
responsible for any issues and/or errors arising out of said filing. Furthermore, PSA will require disclaimer language regarding facsimile transmissions. PSA will not
be responsible for any acts or omissions caused by the USPS. PSA shall not make payments to any claimants without verified, valid Social Security Numbers. All
responses and class member information are held in strict confidentiality. Additional class members are $10.00 per opt-out.
Payment Terms: All postage charges and 50% of the final administration charges are due at the commencement of the case and will be billed immediately upon
receipt of the data and/or notice documents. PSA bills are due upon receipt unless otherwise negotiated and agreed to with PSA by Counsel/Client. In the event the
settlement terms provide that PSA is to be paid out of the settlement fund, PSA. will request that Counsel/Client endeavor to make alternate payment arrangements
for PSA charges that are due at the onset of the case. The entire remaining balance is due and payable at the time the settlement account is funded by Defendant, or
no later than the time of disbursement. Amounts not paid within thirty (30) days are subject to a service charge of 1.5% per month or the highest rate permitted by
law.
Tax Reporting Requirements
PSA will file the necessary tax returns under the EIN of the QSF, including federal and state returns. Payroll tax returns will be filed if necessary. Under the California
Employment Development Department, all taxes are to be reported under the EIN of the QSF with the exception of the following taxes: Unemployment Insurance (UI)
and Employment Training Tax (ETT), employer-side taxes, and State Disability Insurance (SDI), an employee-side tax. These are reported under Defendant's EIN.
Therefore, to comply with the EDD payroll tax filing requirements we will need the following information:
1. Defendant's California State ID and Federal EIN.
2. Defendant's current State Unemployment Insurance (UI) rate and Employment Training Tax (ETT) rate. This information can be found in the current year DE 2088,
Notice of Contribution Rates, issued by the EDD.
3. Termination dates of the class members, or identification of current employee class members, so we can account for the periods that the wages relate to for each
class member.
4. An executed Power of Attorney (Form DE 48) from Defendant. This form is needed so that we may report the UI, SDI, and ETT taxes under Defendant's EIN on their
behalf. If this form is not provided we will work with the EDD auditors to transfer the tax payments to Defendant's EIN.
5. Defendant is responsible for reporting the SDI portion of the settlement payments on the class member's W-2. PSA will file these forms on Defendant's behalf for an
additional fee and will issue an additional W-2 for each class member under Defendant's EIN, as SDI is reported under Defendant's EIN rather than the EIN of the QSF.
‘The Power of Attorney (Form DE 48) will be needed in order for PSA to report SDI payments.
20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page 4 of 4 Confidential and Proprietary
Preview
10 ra 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 18CV334378 Santa Clara — Civil SOPHIA BEHNIA, Bar No. 289318 PERRY K. MISKA, JR, Bar No. 299129 LITTLER MENDELSON, P.C. 333 Bush Street, 34th Floor San Francisco, CA 94104 Telephone: (415) 433-1940 Email: sbehnia@littler.com pmiska@littler.com Attorneys for Defendant SAGE INTACCT, INC. Plaintiff's counsel listed on following page Electronically Filed by Superior Court of CA, County of Santa Clara, on 11/9/2020 4:02 PM Reviewed By: R. Walker Case #18CV334378 Envelope: 5266293 THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SANTA CLARA THOMPSON LY, individually and on behalf of other members of the general public similarly situated, Plaintiff, vs. SAGE INTACCT, INC., and DOES 1 to 10, Defendants. CASE NO. 18CV334378 CLASS ACTION—COMPLEX ASSIGNED FOR ALL PURPOSES TO THE HON. BRIAN C. WALSH—DEPT. 1 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATION CASE NO. 18CV334378 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATION10 ra 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Edward J. Wynne (SBN 165819) ewynne@wynnelawfirm.com George Nemiroff (SBN 262058) gnemiroff@wynnelawfirm.com WYNNE LAW FIRM 80 E. Sir Francis Drake Blvd., Ste. 3G Larkspur, CA 94939 Telephone (415) 461-6400 Facsimile (415) 461-3900 Bryan J. McCormack (SBN 192418) bryan@mcclawfirm.com MCCORMACK LAW FIRM 80 E. Sir Francis Drake Blvd., Ste. 3G Larkspur, CA 94939 Telephone (415) 296-8420 Facsimile (415) 461-3900 Attorneys for Plaintiff THOMPSON LY a CASE NO. 18CV334378 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATION10 ra 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF ELIZABETH KRUCKENBERG I, Elizabeth Kruckenberg, declare under penalty of perjury as follows: is I am the Director of Case Management at Phoenix Settlement Administrators (PSA), the Court-appointed Class Action Settlement Administrator for Thompson Ly. v. Sage Intacct, Inc. 1 have personal knowledge of the facts stated herein and, if called upon to testify, I could and would testify competently to such facts. 2. PSA was selected by the Parties to provide notice of the Settlement and class administration duties in this action. Pursuant to the Settlement Agreement for this matter, PSA was responsible for (i) preparing, printing, and mailing the Notice of Proposed Class Action Settlement (herein referred to as the “Notice Packet”); (ii) responding to inquiries from Class Members; (iii) determining the validity of opt-outs; (iv) calculating the Net Settlement Amount and the Individual Settlement payments; (v) issuing the Individual Settlement Payment checks and distributing them to Participating Class Members; (vi) issuing the payment to Class Counsel for attorneys’ fees and costs, the Enhancement check to Named Plaintiff, and the employer/employee payroll taxes to the appropriate taxing authorities; and (vii) such other tasks as set forth in the Agreement or as the Parties mutually agree or as the Court orders. 3. On August 14, 2020, PSA received a data file from Defense Counsel that contained names, last known mailing addresses, Social Security numbers, telephone numbers, dates of employment, and job positions for each Class Member during the Class Period. The final mailing list contained eighty-nine (89) Class Members. 4. On August 20, 2020, Defendant deposited $1,100,000.00 into the Qualified Settlement Fund. The amount of interest earned to-date is $134.40. 5. On August 21, 2020, PSA conducted a National Change of Address (NCOA) search in an attempt to update the class list of addresses as accurately as possible. A search of this database provides updated addresses for any individual who has moved in the previous four (4) years and notified the U.S. Postal Service of their change of address. i CASE NO. 18CV334378 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATION10 ra 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6. On August 21, 2020, PSA mailed the Notice Packet via U.S. first class mail, in English to all eighty-nine (89) Class Members on the Class List. A true and correct copy of the mailed Notice Packet is attached hereto as Exhibit A. 7. As of the date of this declaration, only one (1) Notice Packet has been returned to PSA. The returned Notice Packet did not contain a forwarding address. PSA attempted to locate a current mailing address using TransUnion TLOxp, one of the most comprehensive address databases available for skip tracing. An updated address was obtained, and the Notice Packet was promptly re-mailed to said Class Member via first class mail. 8. As of the date of this declaration, there are no undeliverable Notice Packets. 9. PSA has received one (1) Request for Exclusion (i.e. “Opt-Out’s”). The deadline for Class Members to submit an “Opt-Out” request was October 6, 2020. The Opt-Out was submitted by Annelise Hagmann. 10. PSA has received zero (0) Objections to the Settlement. The deadline for Class Members to submit an “Objection” to the Settlement was October 6, 2020. te There are no outstanding disputes. 12. The Net Settlement Fund of $706,695.00 available to pay Class Members was determined by subtracting the Class Counsel attorneys' fees ($366,666.00), Class Counsel costs payment ($13,389.00), Class Representative Enhancement Award ($7,500.00), and the Claims Administrator costs ($5,750.00) from the Gross Settlement Fund ($1,100,000.00). Based upon the calculations stipulated in the Settlement, the highest individual settlement payment to be paid will be approximately $30,718.35, and the lowest individual settlement payment to be paid will be approximately $216.33, with the average individual settlement payment to be paid being approximately $8,030.63, without applicable taxes, withholdings, and employee garnishments. 13. PSA’s costs associated with the administration of this matter are $5,750.00. This includes all costs incurred to date, as well as estimated costs involved in completing the settlement distribution. A true and correct copy of the invoice from PSA is attached hereto as Exhibit B. \ \\ 4. CASE NO. 18CV334378 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATION10 ra 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I declare under penalty of perjury of the laws of the State of California that the foregoing is true and correct. Executed this 9% day of November 2020, at Fullerton, California. a CASE NO. 18CV334378 DECLARATION OF ELIZABETH KRUCKENBERG REGARDING NOTICE AND SETTLEMENT ADMINISTRATIONExhibit A«PSA_ID» «Contact» ~ THOMPSON LY vy. SAGE INTACCT, INC. Superior Court of the State of California, County of Santa Clara Case No.: 18CV334378 If you are a current or former employee of Sage Intacct, Inc., formerly known as Intacct Corporation (“Sage Intacct” or “Defendant”), a class action lawsuit may affect your rights and you may be entitled to benefits under the settlement. You are not being sued. A court authorized this notice. This is not a solicitation from a lawyer. PLEASE READ THIS NOTICE CAREFULLY. IT CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS. e This lawsuit involves a class defined as: all persons who are employed or have been employed as exempt by Sage Intacct, Inc. under the job titles Sales Development Representative (“SDR”) and/or Corporate Account Manager (“CAM”), in the State of California, during the Class Period. “Class Period” is defined as 1) the period that a class member held the Sales Development Representative position from September 12, 2014 through July 31, 2018; and 2) the period that a class member held the Corporate Account Manager position from September 12, 2014 through July 15, 2020. e You are receiving this Notice because the records reflect that you may be a class member. e Plaintiff Thompson Ly (‘Plaintiff’) alleges that Defendant misclassified the SDR and CAM positions as salaried exempt as opposed to hourly non-exempt and therefore failed to properly compensate for all hours worked (including minimum wage and overtime), failed to pay lawful wages upon termination or resignation, and engaged in unfair business practices. Sage Intacct denies Plaintiff's claims, and asserts that it has complied with all of its legal obligations to its employees. ¢ There has been a settlement that affects your rights. Although the Court has authorized the Parties to provide this notice of the proposed settlement, the Court has expressed no opinion on the merits of Plaintiff's claims or Sage Intacct’s defenses. ¢ You will not be penalized or retaliated against by Sage Intacct for participating in this settlement. If you are currently employed by Sage Intacct, your employment will not be affected in any way. Current employees of Sage Intacct who choose to participate in the settlement will not be required to resign and can continue to work for Sage Intacct. e You have several options available to you: By doing nothing, you will receive a share of the settlement proceeds, and you will give up any rights to sue Sage Intacct for claims pled or arising out of or reasonably related to the transactions and occurrences pled in the Complaint, which are or could be the basis of claims that Defendant misclassified the SDR and CAM positions as exempt and therefore failed to compensate for all hours worked (including minimum wage and overtime), failed to pay lawful wages upon termination or resignation, and engaged in unfair business practices during the Class Period. DO NOTHINGExclude yourself from this lawsuit. Keep your rights to file a separate claim against ASK TO BE Sage Intacct. AB La If you ask to be excluded, you will not receive a share of the settlement proceeds, OUT) but you keep any rights you may have to bring your own suit against Sage Intacct for the same legal claims in this lawsuit. Object to the terms of this Settlement. If you object to the Settlement, you will still OBJECT participate unless you also opt-out of the Settlement. Your options are explained in this notice. To opt out or object, you must act by October 6, 2020. 1. Why did I get this notice? A proposed settlement has been reached in a class action lawsuit that was brought on behalf of Sage Intacct’s employees. You have received this notice because Sage Intacct’s records indicate that you are a member of the settlement class. 2. What is this lawsuit about? This lawsuit was filed on September 12, 2018 on behalf of individuals who are employed or have been employed as exempt by Sage Intacct, Inc. (formerly known as Intacct Corporation) under the job titles Sales Development Representative and/or Corporate Account Manager, in the State of California, during the Class Period. “Class Period” is defined as 1) the period that a class member held the Sales Development Representative position from September 12, 2014 through July 31, 2018; and 2) the period that a class member held the Corporate Account Manager position from September 12, 2014 through July 15, 2020. The operative complaint alleges class-wide causes of action against Sage Intacct for misclassifying the SDR and CAM positions as salaried exempt as opposed to hourly non-exempt and therefore failing to compensate for all hours worked (including minimum wage and overtime) under Labor Code §§ 510 and 1194; failure to pay lawful wages upon termination or resignation under Labor Code § 203; and unfair business practices under Business & Professions Code § 17200 et seq. 3. Has the Court decided who is right? No. The Court has made no decision regarding the merits of Plaintiffs allegations or Defendant’s defenses. 4. Why did this case settle? The Parties reached a settlement in order to avoid the risk, inconvenience and expense of further litigation. Plaintiff and his attorneys believe the proposed settlement is fair, adequate and in the best interest of the class members to whom it applies given the outcome of their investigation, and the consumption of time and resources required in connection with further litigation. Although Defendant disputes Plaintiffs claims and asserts that it has complied with all of its legal obligations toward its employees, Defendant has also concluded that further litigation would be expensive and would divert management and employee time. 5. What are the terms of the settlement and how much will I receive? The Gross Settlement Amount is $1,100,000. Under the proposed settlement, the following amounts will be deducted before any payments are made to employees, subject to final approval by the Court: -2-e Attorneys’ fees: $366,666.00 e Litigation Costs: $15,000.00 e Claims Administration Costs: $10,000.00 e Class Representative Service Award to Class Representative: $7,500.00 After these deductions, $700,834.00 is estimated to be available for payment to the class members receiving this notice (“Net Settlement Fund”). These amounts may change. Each class member’s Individual Settlement Payment shall be determined on a pro rata basis based upon the number of workweeks during which he/she worked as exempt in California under the job titles Sales Development Representative and/or Corporate Account Manager during the Class Period, in proportion to the total number of workweeks worked by all Settlement Class Members as exempt in California under the job titles Sales Development Representative and/or Corporate Account Manager during the Class Period. All Individual Settlement Payments will be allocated as follows: 1/3 to settlement of wage claims, 1/3 to settlement of claims for interest, and 1/3 to settlement of claims for statutory penalties. According to Sage Intacct’s records, the total number of workweeks that you worked as an exempt Sales Development Representative and/or Corporate Account Manager in California during the Class Period and your estimated settlement amount based on these workweeks is as follows: Workweeks Estimated Settlement Amount «Total Weeks» «Est_Set_Amt» If you disagree with this information and would like someone to look into the matter, please follow the procedure below. 6. What if I disagree with the number of workweeks shown above? If you believe the information in the notice is incorrect regarding the number of workweeks, you will need to write a letter setting forth the number of workweeks that you believe are correct. You may attach any relevant documentation in support thereof. You must mail your letter to: Sage Intacct Settlement Administrator c/o Phoenix Settlement Administrators P.O. Box 7208 Orange, CA 92863 You must submit such information by October 6, 2020. Class Counsel and the Settlement Administrator will work together in good faith and do their best to promptly resolve the dispute based on available records. In the event they are unable to resolve any dispute under this Section, the Settlement Administrator shall review all information, material and documents and make a decision regarding the dispute. 7. What do I have to do to receive a share of the settlement? If you would like to receive an award under the terms of this settlement, you do not have to do anything. However, it is advisable to confirm your current mailing address with the Settlement Administrator in order to ensure you receive your settlement share. You will be covered by the release summarized in Section 8, below.8. What rights am I giving up? The claims you will release by doing nothing are: any and all claims that are asserted in the operative complaint, which could have been asserted based on the facts alleged in the complaint, or which are or could be the basis of claims that Defendant misclassified the SDR and CAM positions as salaried exempt as opposed to hourly non- exempt and therefore failed to compensate for all hours worked (including minimum wage and overtime) under Labor Code Sections 510 and 1194; penalties pursuant to Labor Code Section 203; violation of Business & Professions Code Sections 17200, et seqg., claims for restitution and other equitable relief, liquidated damages, declaratory relief, interest or penalties, from September 12, 2014 through July 15, 2020. 9. What if I do not wish to be involved? Anyone not wishing to participate in the settlement may exclude himself or herself (“opt out”) by completing, signing, and mailing a letter indicating that they do not want to participate in the settlement to the Settlement Administrator, Phoenix Settlement Administrators, at the following address by October 6, 2020. Sage Intacct Settlement Administrator c/o Phoenix Settlement Administrators P.O. Box 7208 Orange, CA 92863 If your Request for Exclusion is postmarked after October 6, 2020, it will be rejected, and you will be a Settlement Class Member and be bound by the settlement terms and release. Anyone who submits a timely and valid Request for Exclusion shall not be deemed a Settlement Class Member and will not receive any payment as part of this settlement. Such individuals will keep any right to sue Sage Intacct separately about the claims made in this lawsuit. 10. What if I have an objection? A class member may object to the settlement in writing or in person. Written objections and all supporting briefs or other materials must be submitted to the Settlement Administrator no later than October 6, 2020. If your objection is overruled at the Final Approval Hearing, you will receive an award and be bound by the terms of this settlement unless you indicate otherwise. Any class member may make an objection at the Final Approval Hearing with or without filing or serving any written objection. The Class Member may appear personally or through an attorney, at his or her own expense, at the Final Approval Hearing to present his or her objection directly to the Court. Any attorney who will represent an individual objecting to this Settlement who has not filed a written objection must file a notice of appearance with the Judge and serve Class Counsel and Defense Counsel no later than October 6, 2020. The Final Approval and Fairness Hearing will be held in Dept. 1 of the Santa Clara County Superior Court, Downtown Courthouse, located at 191 N. Ist Street, San Jose, California on December 4, 2020, at 9:00 a.m. (Pacific Time). Due to the COVID-19 pandemic, hearings before the judge overseeing this case are currently being conducted remotely with the assistance of a third-party service provider, CourtCall. If that remains the case at the time of the final fairness hearing, class members who wish to appear at the final fairness hearing should contact class counsel to arrange a telephonic appearance through CourtCall, at least three days before the hearing if possible. Any CourtCall fees for an appearance by an objecting class member shall be paid by class counsel.11. Do I need a lawyer? Who are the lawyers in this case? You do not need to hire your own lawyer because Class Counsel is working on your behalf. However, if you want your own lawyer, you are free to hire one at your own expense. The below are Class Counsel: Edward J. Wynne (SBN 165819) Bryan J. McCormack (SBN 192418) George ae Sou 262058) MCCORMACK LAW FIRM 80 E. Sir Francis Drake Blvd., Ste. 3G SOE oi crenci Drake Blvd Sic 3G Larkspur, CA 94939 Larkspur, CA 94939 Telephone (415) 461-6400 Telephone (415) 925-5161 Facsimile (415) 461-3900 Facsimile (415) 461-3900 Email: ewynne@wynnelawfirm.com Email: bryan@bmeclaw.com gnemiroff@wynnelawfirm.com Attorneys for Plaintiff THOMPSON LY 12. What happens next in the case? The Settlement has only been preliminarily approved. The Court will hold a hearing in Dept. 1 of the Santa Clara County Superior Court, Downtown Courthouse, located at 191 N. Ist Street, San Jose, California at December 4, 2020, at 9:00 a.m. (Pacific Time), to consider any objections and determine whether the settlement should be finally approved as fair, reasonable, and adequate. The Court will also be asked to approve Class Counsel’s request for attorneys’ fees and costs, Plaintiff's service award, and the costs of claims administration. The hearing may be continued without further notice to you. It is not necessary for you to appear at this hearing. 13. How can I receive more information? This notice is a summary of the basic terms of the settlement. For further information, you may telephone the Sage Intacct Settlement Administrator, Phoenix Settlement Administrators at 1-800-523-5773, or Class Counsel (listed above). Please do not telephone the Court, the Office of the Clerk, or Sage Intacct’s counsel for information regarding this settlement.Exhibit Bws ys S24 PHOENI?M4 SARS CLASS ACTION ADMINISTRATION SOLUTIONS May 15, 2020 Case: TBD Opt-Out Phoenix Contact: Jodey Lawrence Contact Number: 949.566.1455 Email: Jodey@phoenixclassaction.com CASE ASSUMPTIONS Class Members Opt Out Rate Opt Outs Received Total Class Claimants Subtotal Admin Onl 90 2% 2 88 $5,750.00 Requesting Attorney: George R. Nemiroff Firm: Wynne Law Firm Contact Number: 415-461-6400 Email: gnemiroff@wynnelawfirm.com Assumptions and Estimate are based on information provided by counsel. If class size changes, PSA will need to adjust this Estimate accordingly. Estimate is based on.90 Class Members. PSA assumes class data will be sent in Microsoft Excel or other usable format with no or reasonable additional formatting needed. A rate of $150 per hour will be charged for any additional analysis or programming. Programming Manager $100.00 2 $200.00 Programming Database & Setup $100.00 2 $200.00 Toll Free Setup* $131.19 a $131.19 Call Center & Long Distance $1.50 io) $13.50 NCOA (USPS) 90 0.25 $22.50 Total $567.19 * Up to 120 days after disbursement Notice Packet Formatting $100.00 2} $200.00 Data Merge & Duplication Scrub $0.15 90 $13.50 Notice Packet & Opt-Out Form $2.00 90 $180.00 Total $393.50 * Prices good for 90 days, Subject to change with the USPS Rate or change in Notice pages or Translation, if any. 20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page | of 4 Confidential and ProprietaryS24 PHOENIA CLASS ACTION ADMINISTRATION SOLUTIONS Case Associate $50.00 3 $150.00 Skip Tracing Undeliverables $1.00 18 $18.00 Remail Notice Packets $2.00 18 $36.00 Estimated Postage $0.70 18 $12.60 Programming Undeliverables $50.00 B $150.00 Total $366.60 Programming Claims Database $100.00 3 $300.00 Non Opt-Out Processing $200.00 1 $200.00 Case Associate $55.00 4 $220.00 Opt-Outs/Deficiency/Dispute Letters $8.50 2 $19.13 Case Manager $75.00 3 $225.00 Total $964.13 Programming Calculations $100.00 2 $200.00 Disbursement Review $100.00 2 $200.00 Programming Manager $95.00 2 $190.00 QSF Bank Account & EIN $100.00 2 $200.00 Check Run Setup & Printing $100.00 3 $300.00 Mail Class Checks, W2 and 1099 * $2.00 88 $176.40 Estimated Postage Checks, W2 and 1099 $0.55 88 $48.51 Total $1,314.91 * Checks are printed on 8.5 x 11 in. sheets with W2/1099 Tax Filing 20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page 2 of 4 Confidential and ProprietaryS,2 PIHOENI?4 CLASS ACTION ADMINISTRATION SOLUTIONS Case Supervisor $100.00 2 $200.00 Remail Undeliverable Checks $1.55 a $13.67 (Postage Included) Case Associate $55.00 2 $110.00 Reconcile Uncashed Checks $85.00 2 $170.00 Conclusion Reports $125.00 2 $250.00 Case Manager Conclusion $85.00 2 $170.00 Final Reporting & Declarations $115.00 2 $230.00 IRS & QSF Annual Tax Reporting * $1,000.00 1 $1,000.00 (State Tax Reporting Included) Total $2,143.67 All applicable California State & Federal taxes, which include SUI, ETT, and SDI, and FUTA filings. Additional taxes are Defendant's responsibilty. Estimate Total: $5,750.00 20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page 3 of 4 Confidential and ProprietarySyd PHOENI?A CLASS ACTION ADMINISTRATION SOLUTIONS Provisions: The case estimate is in good faith and does not cover any applicable taxes and fees. The estimate does not make any provision for any services or class size not delineated in the request for proposal or stipulations. Proposal rates and amounts are subject to change upon further review, with Counsel/Client, of the Settlement Agreement. Only pre-approved changes will be charged when applicable. No modifications may be made to this estimate without the approval of PSA (Phoenix Settlement Administrators). All notifications are mailed in English language only unless otherwise specified. Additional costs will apply if translation into other language(s) is required. Rates to prepare and file taxes are for Federal and California State taxes only. Additional charges will apply if multiple state tax filing(s) is required. Pricing is good for ninety (90) days. Data Conversion and Mailing: The proposal assumes that data provided will be in ready-to-use condition and that all data is provided ina single, comprehensive Excel spreadsheet. PSA cannot be liable for any errors or omissions arising due to additional work required for analyzing and processing the original database. A minimum of two (2) business days is required for processing prior to the anticipated mailing date with an additional two (2) business days for a National Change of Address (NCOA) update. Additional time may be required depending on the class size, necessary translation of the documents, or other factors. PSA will keep counsel apprised of the estimated mailing date. Claims: PSA's general policy is to not accept claims via facsimile. However, in the event that facsimile filing of claims must be accepted, PSA will not be held responsible for any issues and/or errors arising out of said filing. Furthermore, PSA will require disclaimer language regarding facsimile transmissions. PSA will not be responsible for any acts or omissions caused by the USPS. PSA shall not make payments to any claimants without verified, valid Social Security Numbers. All responses and class member information are held in strict confidentiality. Additional class members are $10.00 per opt-out. Payment Terms: All postage charges and 50% of the final administration charges are due at the commencement of the case and will be billed immediately upon receipt of the data and/or notice documents. PSA bills are due upon receipt unless otherwise negotiated and agreed to with PSA by Counsel/Client. In the event the settlement terms provide that PSA is to be paid out of the settlement fund, PSA. will request that Counsel/Client endeavor to make alternate payment arrangements for PSA charges that are due at the onset of the case. The entire remaining balance is due and payable at the time the settlement account is funded by Defendant, or no later than the time of disbursement. Amounts not paid within thirty (30) days are subject to a service charge of 1.5% per month or the highest rate permitted by law. Tax Reporting Requirements PSA will file the necessary tax returns under the EIN of the QSF, including federal and state returns. Payroll tax returns will be filed if necessary. Under the California Employment Development Department, all taxes are to be reported under the EIN of the QSF with the exception of the following taxes: Unemployment Insurance (UI) and Employment Training Tax (ETT), employer-side taxes, and State Disability Insurance (SDI), an employee-side tax. These are reported under Defendant's EIN. Therefore, to comply with the EDD payroll tax filing requirements we will need the following information: 1. Defendant's California State ID and Federal EIN. 2. Defendant's current State Unemployment Insurance (UI) rate and Employment Training Tax (ETT) rate. This information can be found in the current year DE 2088, Notice of Contribution Rates, issued by the EDD. 3. Termination dates of the class members, or identification of current employee class members, so we can account for the periods that the wages relate to for each class member. 4. An executed Power of Attorney (Form DE 48) from Defendant. This form is needed so that we may report the UI, SDI, and ETT taxes under Defendant's EIN on their behalf. If this form is not provided we will work with the EDD auditors to transfer the tax payments to Defendant's EIN. 5. Defendant is responsible for reporting the SDI portion of the settlement payments on the class member's W-2. PSA will file these forms on Defendant's behalf for an additional fee and will issue an additional W-2 for each class member under Defendant's EIN, as SDI is reported under Defendant's EIN rather than the EIN of the QSF. ‘The Power of Attorney (Form DE 48) will be needed in order for PSA to report SDI payments. 20200515 TBD Opt-Out George R. Nemiroff - Wyann 90.xlsx Page 4 of 4 Confidential and Proprietary