new stipulation to settlement of all claims whereas, … · 2013. 8. 9. · whereas, plaintiffs...
TRANSCRIPT
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~eeaeas-s~
STIPULATION TO SETTLEMENT OF ALL CLAIMS
WHEREAS, Plaintiffs JOSE RAMIREZ, LUIS GOMEZ, and MARCK MENA
~ ORTEGA, on behalf of themselves and all persons similarly situated ("Plaintiffs"), and
~ Defendant GHILOTTI BROS., INC. ("GBI"), by and through their counsel of record
(collectively, "the parties") have conducted three separate mediation sessions at Judicial
~ Arbitration and Mediation Services ("JAMS") under the direction of the Honorable
~ William Cahill (Ret.); and
WHEREAS, subject to Court approval, the parties wish to resolve the claims raised
~ in this action through a full and final settlement to be approved by this Court;
WHEREAS, the parties desire to have their settlement agreement fully enforceable
~ subject to the Court's approval and continuing jurisdiction;
NOW, THEREFORE, THE PARTIES STIPULATE AND AGREE AS FOLLOWS:
1. Plaintiffs shall, as part of a motion for preliminary approval of this
~ settlement, seek certification of a class for settlement purposes of all GBI laborers as
defined in the First Amended Complaint, not just those who have opted in to the
conditionally certified FLSA claim. Defendant shall not oppose certification for settlement
purposes. Should the Court fail to approve the settlement, Plaintiffs stipulate and agree
that the class certification for settlement purposes only shall have no force and effect in
this matter, that any order certifying a class shall be vacated nunc pro tunc, that the parties
may conduct any discovery, and introduce in support of or opposition to any subsequently
filed motion for class certification or motion for denial of class certification or
reconsideration of class certification, any evidence and argument they deem necessary, and
that the prior class certification for settlement purposes only shall not relieve Plaintiffs of
their burden or obligation to obtain class certification as required by law.
2. Defendant GBI agrees to pay over three years (but no later than
December 15, 2016, with the first payment no later than December 15, 2013) and, subject
to Court approval, and the class agrees to accept a total of $950,000 for full resolution of
~ the case. Except for interest as specifically set forth in this Stipulation, in no event, shall
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GBI be obligated to pay any fees, costs or amounts in excess of $950,000.
3. If the settlement is approved by the Court in a final settlement hearing to be
held in early December 2013, the 2013 payment ("the First Payment") as set forth below
will include the incentive awards for the three named Plaintiffs, a portion of the settlement
administrator costs, Plaintiffs' counsel's out of pocket costs, and a PAGA penalty, as
described below.
(a) On or before December 15, 2013, Defendant GBI will pay up to
$118,500.00 divided as follows:
(i) Except as modified by the Court, incentive awards of up to
$15,000 to each of the three named Plaintiffs, not to exceed $45,000 in total incentive
awards;
(ii) An amount not to exceed $10,000 to cover settlement
administrator costs through calendar year 2014;
(iii) Plaintiffs' counsel's documented out of pocket costs, not to
exceed $60,000;
(iv) A PAGA penalty of $3,500, to be paid to the California Labor
and Workforce Development Agency.
(b) On or before January 15, 2014, Defendant GBI will pay to the
Settlement Administrator the sum of $140,000.00, which shall be distributed to the class
pursuant to item 5 below.
(c) Plaintiffs' counsel agrees to seek Court approval of an award of
attorney fees of no more than $285,000, and Defendant agrees not to oppose any motion
for an award of attorney fees so long as the motion does not seek fees in excess of
$285,000 or costs in excess of $60,000. On or before January 15, 2014, Defendant GBI
will pay $95,000 to Plaintiffs' counsel, which is one-third of Plaintiffs' counsel's
attorneys' fee of $285,000, or, in the event that the Court awards Plaintiffs' counsel less
than $285,000 in attorney fees, one-third of said amount awarded by the Court.
(d) The remaining balance of settlement funds owed will accrue simple
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interest at 5% per annum from January 15, 2014. This amount shall be paid out as follows:
(i) to the Settlement Administrator for additional settlement
~ administration costs;
(ii) to Plaintiffs' counsel for attorney's fees in two separate
payments of $95,000 (or such other amount as equals one-third of the amount awarded by
the Court as attorney fees) payable on July 1, 2015 and December 15, 2016; and
(iii) to the Settlement Administrator to distribute to the class over 2
years, with the class receiving the interest that accrues, divided into two payments as
follows:
(1) One-half of the balance will be paid on or before July 1,
~ 2015; and
~2)
on or before December 15, 2016.
The remaining amount will be paid in a final payment
4. Any incentive awards, attorneys' fees and costs and other amounts which are
unapproved or otherwise reduced by the Court shall be distributed to the class.
5. Plaintiffs agree to a release of any and all claims by the class members who
do not opt out against GBI that were raised in this case or could have been raised that
relate or refer to violations of federal and state wage and hour laws as of the date of final
approval by the Court, including a waiver of California Civil Code section 1542 as to
violations of federal and state wage and hour laws.
6. The settlement funds shall be distributed by payment out to each and every
single class member of his or her pro rata share, on a work week basis with a multiplier
applied to increase the amounts paid to those class members who drove a truck for GBI
during the class period. Class notice in a form to be approved by the Court via work site
posters and notices in or on Univision, the San Francisco Chronicle, the Contra Costa
Times, and the websites of Plaintiffs' counsel, and individual mailed postcards will
provide class members with the following options:
(i) Do nothing and receive a payment, with any unclaimed
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amounts (i.e. un-cashed checks) going to the State's unclaimed property fund to be
claimed by class members or eventually escheat to the State; or
(ii) Opt out to preserve his or her right to pursue his or her own
claims, with the pro rata amounts for opt-outs reverting to GBI. The Opt out notice shall
inform class members that by opting out, he/she is not participating in the lawsuit.
Consequently, he/she preserves the right to sue or not to sue GBI.
7. GBI acknowledges that under law it may not retaliate against class members
who choose to opt in to the settlement. GBI shall issue a memorandum to its managers,
officers, directors and HR personnel which shall direct these persons that if approached by
a class member concerning the settlement, he/she shall inform the class member only that
they should consult the class notice for further information and will not express an opinion
on the wisdom or validity of participating or not participating in the settlement.
8. In the settlement agreement there will be a commitment by GBI to injunctive
relief enforceable under federal law as follows: GBI agrees that on or before January 1,
2014 GBI will set up a procedure pursuant to which each laborer can make a record of the
time he or she starts and ends work (e.g., picking up a truck or arriving on site, etc.). This
tracking shall be done by any method whereby the laborers, and not the managers or
supervisors, record their own start and ending times. Additionally Plaintiffs will seek
injunctive relief requiring GBI to comply with IWC Order 16-2001 for all purposes and in
all respects, except to the extent GBI's obligations may be modified by the parties' Master
Labor Agreement pursuant to the California Labor Code. Any injunction shall be
considered fully discharged on or by the date of the last payment by GBI (in December
2016).
9. To allow time for adequate class notice, the parties agree to work together to
finalize a settlement agreement prepared by Defendant's counsel no later than August 15,
2013. Plaintiffs shall prepare and file a motion for preliminary approval of this class
action settlement no later than August 31, 2013 and ask the Court to schedule a final
approval hearing for early December 2013. Defendants shall file a separate motion in
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support of preliminary approval on August 31, 2013. If the parties have not yet agreed to
the details of the long-form settlement agreement to follow, then they agree to submit any
remaining disagreements regarding the long-form settlement agreement to Judge Cahill of
JAMS for final decision, and the parties agree that his decisions on any such disagreements
shall be binding and nonappealable. GBI will pay all expenses incurred for Judge Cahill's
time only in connection with any such referral before Judge Cahill.
10. In no event shall any public filing or hearing reference GBI's financial
condition or position. GBI understands that certain general financial information may be
necessary for Plaintiffs to reference in seeking approval of the settlement. To the extent
such reference is necessary, the parties agree that such portions shall be filed under seal.
11. The parties agree to notify the Court immediately of this settlement, and
jointly request a stay of all pending discovery and/or other deadlines in this matter pending
preliminary and final approval.
12. This Agreement may be executed in counterparts, by facsimile and/or PDF,
and when each Party has signed and delivered at least one such counterpart to the other
Party, each counterpart shall be deemed an original and taken together shall constitute one
and the same Agreement, which shall be binding and effective as to all Parties hereto. A
certified Spanish translation of this Agreement is attached hereto and has been provided to
each of the named Plaintiffs listed below.
IT IS SO STIPULATED AND AGREED.
DATED: August S , 2013 ROSEN BIEN GALVAN & GRUNFELD LLP
By: ~ --
a Crosth ait unfeld
[880839-6) II CJ
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~ DATED: August , 2013 STEWART & MUSELL, LLP
~ DATED: August , 2013
~ DATED: August , 2013
~ DATED: August , 2013
DATED: August 2013
DATED: August ~ 2013
By:Wendy E. Musell
Attorneys for Plaintiffs
JOSE RAMIREZ
LUIS GOMEZ
MARCK MENA ORTEGA
JEFFERS MA LS BUTLER &MITCHELL LLP
By:~n~aguyenG~
Attorneys for Defendant
GHII,OTTI BROS., INC.
Michael GhilottiPresident and Treasurer
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~ DATED: August , 2013
DATED: August ~, 2013
DATED: August ~, 2013
DATED: August $, 2013
~ DATED: August _, 2013
DATED: August ~, 2013
STEWART & MUSELL, LLP
n
JEFFERS MANGELS BUTLER &MITCHELL LLP
An Nguyen Ruda
Attorneys for Defendant
GHILOTTI BROS., INC.
By~ ~,R~ ~r,R ~0Michael GhilottiPresident and Treasurer
[8608396] II 6
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DATED: August ~, 2013
DATED: August ~, 2013
DATED: August ~, 2013
DATED: August $, 2013
DATED: August _, 2013
DATED: August ~, 2013
JEFFERS MANGELS BUTLER &MITCHELL LLP
An Nguyen Ruda
Attorneys for Defendant
GHILOTTI BROS., INC.
By~ n c, ~t~c <QMichael GhilottiPresident and Treasurer
[860839-6] II 6
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[88083&6]
ESTIPULACION DE LA CONCILIACION DE TODOS LOS RECLAMOS
POR CUANTO, los demandantes JOSE RAMIREZ, LUIS GOMEZ, y MARCK
MENA ORTEGA, en su nombre y en el nombre de todas las personas en situacion similar
("Demandantes"), y el Demandado GHILOTTI BROS., INC. ("GBI"), mediante su
abogado que consta en registro (colectivamente, "las partes") han llevado a cabo tres
sesiones de mediacion separadas en Judicial Arbitration and Mediation Services ("JAMS")
bajo la direccion del Honorable William Cahill (Ret.); y
POR CUANTO, sujeto a la aprobacion del Tribunal, las partes desean resolver los
reclamos planteados en esta acci6n a traves de una conciliation completa y definitiva para
que sea aprobada por este Tribunal;
POR CUANTO, las partes desean que su acuerdo de conciliaci6n sea
completamente valido sujeto a la aprobacion y competencia del Tribunal;
POR TANTO, LAS PARTES ESTIPULAN Y ACUERDAN LO SIGUIENTE:
L Los Demandantes buscaran, Como parte de la motion para la aprobacion
preliminar de esta conciliaci6n, la certificaci6n de una clase a los efectos de la conciliation
de todos los trabajadores de GBI segun se define en la Primera Demanda Enmendada, no
solo de aquellos que han elegido participar en el reclamo de FLSA certificado de manera
conditional. El Demandado no se opondra a la certification a los fines de la conciliation.
Si el Tribunal no aprobara la conciliation, los Demandantes estipulan y acuerdan que la
certification de la claw a los fines de la conciliation unicamente no tendra validez ni
efecto en esta cuestion, que cualquier Orden que certifique una claw sera desestimada nunc
pro tunc, que las partes podran realizar cualquier presentation de pruebas, e introducir en
apoyo u oposici6n a cualquier motion de certification de claw presentada en forma
subsiguiente o motion para el rechazo de una certification de claw o reconsideration de
certification de clase, cualquier evidencia y argumento que consideren necesarios, y que la
certification de claw a los fines de la conciliation unicamente previa no relevara a los
Demandantes de su carga u obligation de obtener la certification de clase segun to
requiere la ley.
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2. El Demandado GBI acuerda pagar en tres anos (pero no mas alla del 15 de
diciembre de 2016, siendo el primer pago no mas ally del 15 de diciembre de 2013) y,
sujeto a aprobacion del tribunal un total de $950,000 para la resolucion completa del caso.
Excepto por interes Begun se establece especificamente en esta Estipulaci6n, en ningun
caso estara GBI obligada a pagar honorarios, costos o montos en exceso de $950,000.
3. Si la conciliacion es aprobada por el Tribunal en una audiencia final de
conciliation que se realizara a principios de diciembre de 2013, el pago de 2013 ("el
Primer Pago") segun se establece a continuation incluira el otorgamiento de los incentivos
Para los tres Demandantes nombrados, una parte de los costos del administrador de la
conciliation, los costos "de bolsillo" del abogado de los Demandantes, y una penalidad
PAGA, segun se describe a continuation.
(a) El 15 de diciembre de 2013, o antes, el Demandado GBI pagara hasta
$118,500.00 divididos como se indica a continuation:
(i) Excepto como to modifique el Tribunal, otorgamientos de
incentivos de hasta $15,000 a cada uno de los tres Demandantes nombrados, que no
excederan los $45,000 en otorgamientos de incentivos totales;
(ii) Un monto que no excedera los $10,000 para cubrir los costos
del administrador de la conciliation hasta el ano calendario 2014;
(iii) Los costos "de bolsillo" documentados del abogado de los
~ Demandantes, que no excederan los $60,000;
(iv) Una penalidad PAGA de $3,500, que sera pagada a la Agencia
de Trabajo y Desarrollo de la Fuerza Laboral de California (California Labor and
Workforce Development Agency).
(b) El 15 de enero de 2014 o antes de esta fecha, el Demandado GBI
pagara al Administrador de la Conciliaci6n la suma de $140,000.00, que sera distribuida a
la clase de acuerdo con el punto 5 mas abajo.
(c) El abogado de los Demandantes acuerda buscar la aprobacion del
Tribunal de un otorgamiento de honorarios de abogados de no mas de $285,000, y el2
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Demandado acuerda no oponerse a ninguna mocion por el otorgamiento de honorarios de
abogados siempre que la mocion no busque obtener honorarios en exceso de $285,000 0
costos en exceso de $60,000. El 15 de enero de 2014 o antes de esa fecha, el Demandado
GBI pagara $95,000 al abogado de los Demandantes, que representa un tercio de los
honorarios de abogados del abogado de los Demandantes de $285,000, o, en el caso que el
Tribunal otorgue al abogado de los Demandantes menos de $285,000 en honorarios de
abogados, un tercio de dicho monto otorgado por el Tribunal.
(d) El saldo restante de los fondos de la conciliacion adeudados
acumularan intereses simples al 5% por ano a partir del 15 de enero de 2014. Este monto
se pagara como se describe a continuation:
(i) a1 Administrador de la Conciliation por costos adicionales de
~ administration de la conciliation;
(ii) al abogado de los Demandados por honorarios de abogados en
dos pagos separados de $95,000 (u otros montos que equivalgan a un tercio del monto
otorgado por el Tribunal como honorarios de abogados) pagaderos el 1 de Julio de 2015 y
el 15 de diciembre de 2016; y
(iii) al Administrador de la Conciliation para distribuir a la claw en
2 anos, la claw recibira los intereses que se acumulen, divididos en dos pagos segun se
describe a continuaci6n:
(1) La mitad del saldo sera pagado el 1 de Julio de 2015 0
~ antes; y
(2) El monto restante sera pagado en un pago final el 15 de
diciembre de 2016 o antes.
4. Cualquier otorgamiento de incentivos, honorarios de abogados y costos y
otros montos que no sean aprobados o sean reducidos por el Tribunal seran distribuidos a
la clase.
5. Los Demandantes acuerdan liberar todos y cada uno de los reclamos de los
miembros de la claw que no optan por no participar contra GBI que fueron elevados en
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este caso o podrian haber sido elevados que se relacionen o refieran a violaciones de las
leyes federates y estatales de salarios y horas de trabajo a la fecha de aprobacion final por
parte del Tribunal, incluyendo una renuncia al articulo 1542 del Codigo Civil de California
respecto de las violaciones a las leyes federates y estatales de salarios y horas de trabajo.
6. Los fondos de la conciliation seran distribuidos mediante pagos a todos y
cada uno de los miembros individuates de la clase en su portion prorrateada, en base a la
semana laboral con la aplicacion de un multiplicador para incrementar los montos pagados
a aquellos miembros de la clase que conducian un carrion Para GBI durante el periodo de
la clase. La notification de la clase en un formulario que sera aprobado por el Tribunal a
~ traves de posters en el lugar de trabajo y notificaciones en Univision, el San Francisco
Chronicle, el Contra Costa Times y los sitios web de los abogados de los Demandantes y
notificaciones enviadas por correo de manera individual brindaran a los miembros de la
clase las siguientes opciones:
(i) No hater nada y recibir un pago, y cualquier monto no
reclamado (es decir cheques no depositados) ira al fondo de propiedad no reclamada del
Estado pare ser reclamado por miembros de la clase o eventualmente reversados al Estado;
ry
(ii) Optar no participar pare conserver su derecho a proseguir con
sus propios reclamos, y los montos prorrateados de aquellos que opten por no participar
volveran a GBI. La notification de optar por no participar informara a los miembros de la
clase que mediante la option de no participar, el o ella no participara en Ia demanda. Por
to tanto, el o ella conservara su derecho a demander o no a GBI.
7. GBI acepta que de acuerdo con la ley no podra tomar represalias contra los
miembros de la claw que opten por participar en la conciliation. GBI emitira un
memorando a sus gerentes, funcionarios, directores y personal de RRHH que dare
instrucciones a estas personas diciendo que si son contactados por un miembro de la claw
en relation con la conciliation, debera informer al miembro de la clase que deben
consulter la notification a la claw pare mayor informaci6n y no expresaran opinion alguna[880836] II 4
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~ acerca de si es acertado o valido participar o no de la conciliacion.
8. En el acuerdo de conciliation se incluira un compromiso por parte de GBI a
una Orden judicial que podra ponerse en vigencia segun la ley federal segun se describe a
~ continuation: GBI acuerda que el 1 de enero de 2014 o antes, GBI establecera un
procedimiento de acuerdo con el cual cada trabajador pods registrar la Nora en que
comienza y finaliza su trabajo (por ej. recoger un carrion o llegar al sitio, etc.). Este
registro se realizara mediante cualquier metodo mediante el cual los trabajadores, y no los
gerentes o supervisores, registraran sus propios horarios de inicio y finalization. Ademas
los Demandantes buscaran una Orden judicial que requiem que GBI cumpla con la Orden
de IWC 16-2001 para todos los fines y en todos los aspectos, excepto hasta el limite que
las obligaciones de GBI puedan ser modificadas por el Acuerdo Maestro de Trabajo de
acuerdo con el Codigo de Trabajo de California. Toda Orden judicial sera considerada
cumplida para la fecha del ultimo pago por GBI (en diciembre de 2016).
9. Para brindar tiempo suficiente Para notificar a la clase de manes adecuada,
las partes acuerdan trabajar juntas para finalizar un acuerdo de conciliation preparado por
el abogado de los Demandantes antes del 15 de agosto de 2013. Los Demandantes
prepararan y presentaran una motion para la aprobacion preliminar de esta conciliation de
demanda colectiva antes del 31 de agosto de 2014 y solicitaran al Tribunal que programe
una audiencia final de aprobacion para principios de diciembre de 2013. Los Demandantes
prepararan una motion por separado en apoyo de la aprobacion preliminar e131 de agosto
de 2013. Si las partes aun no han acordado los detalles del formulario largo del acuerdo de
conciliation que se realizara a continuation, entonces acuerdan enviar presentar cualquier
desacuerdo restante en relation con el formulario largo del acuerdo de conciliation al Juez
Cahill de JAMS para una decision definitiva, y las partes acuerdan que sus decisiones
sobre cualquiera de estos desacuerdos seran vinculantes y no podran apelarse. GBI pagara
todos los gastos incurridos por el tiempo del Juez Cahill solo en relation con dicha
derivation ante el Juez Cahi1L
10. En ningun caso ninguna presentation publica o audiencia pods hater
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referenda a la condicion o posicion financiera de GBI. GBI entiende que podra ser
necesario que los Demandantes hagan referenda a determinada information financiera
general para buscar la aprobacion de la conciliation. Hasta el limite que dicha referenda
sea necesaria, las partes acuerdan que dichas partes deberan ser presentadas bajo sello.
11. Las partes acuerdan notificar al Tribunal de inmediato acerca de esta
conciliation, y solicitan de manera conjunta el aplazamiento de todas las presentaciones de
pruebas pendientes y/u otros plazos en este asunto pendiente la aprobaci6n preliminar y
final.
12. Este Acuerdo podra ser firmado en ejemplares, mediante facsimil y/o PDF, y
cuando cada Parte haya firmado y entregado al menos uno de dichos ejemplares a la otra
Parte, cada ejemplar sera considerado un original y juntos constituiran un solo y mismo
Acuerdo, que sera vinculante y efectivo Para todas las Partes del presente. Se adjunta al
presente una traduccion certificada al espanol de este Acuerdo y se ha brindado a cada uno
de los Demandantes nombrados enumerados mas abajo.
SE ESTIPULA Y ACUERDA.
FECHA: de agosto de 2013 ROSEN BIEN GALVAN & GRLTNFELD LLP
Por:Gay Crosthwait Grunfeld
FECHA: de agosto de 2013 STEWART & MUSELL, LLP
Por:Wendy E. Musell
Abogados de los Demandantes
FECHA: de agosto de 2013JOSE RAMIREZ
[880839-6] II 6
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FECHA
FECHA:
de agosto de 2013
de agosto de 2013
LUIS GOMEZ
MARCK MENA ORTEGA
FECHA: de agosto de 2013 JEFFERS MANGELS BUTLER &MITCHELL LLP
Por:An Nguyen Ruda
Abogados de los Demandados
FECHA: de agosto de 2013 GHILOTTI BROS., INC.
Por:Michael GhilottiPresidente y Tesorero
[88083&6] II 7
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CERTiFICATIUN OF TRANSLATIONAFFIDAVIT FOR TRANSLATION OF SAID DOCUMENT
American Language Services, a company specializing in the translation of documents, certifies the following:
• American Language Services has retained a professional translator for the attached English into
Spanish document. The document is referred to as:
"RANIIREZ V. GHILOTTI BROS. INC."
• - I affirm that such translation has been prepared by a duly qualified translator, who has confirmed that
such translation is, to the best of their knowledge and belief, a true and accurate translation in
Spanish of the corresponding English document.
• I declare under the penalty of perjury under the laws of the State of California that the foregoing is
true and correct. Notwithstanding the foregoing affirmations, no liability is assumed for errors and
omissions in the translation of the attached document.
Executed on this Eighth day of August, 2013, at Los Angeles, California.
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DINA SPEVACK, DIRECTOR
AMERICAN LANGUAGE SERVICES
1849 SAWTELLE BLVD. SUTTEb00 LOS ANGELES, CALIFORNIA 90025TEL (310) 829-0741 FAX (3I0} 829-3222
translation@ai sglobal. netrvww.alsglobal.net
• .. ~•.
State of California
Counfy of Los Angelesss.
p~ August 8, 2013 ,before me, the undersigned, a Notary Public for the state,Date
personally appeared Alan Weissproved to me to be the person
Name of Subscribing Witnesswhose name is subscribed to the within instrument, as a witness thereto, on the oath of
Jay Herzog a credible witness who is known to me andName of Credible Witness Who Iderrtrfies Subscribing Witness
provided a satisfactory identifying document. Alan Weiss
-~ Name of Subscribing Wifnessbeing by me duty sworn, deposed and said that he/she was present and saw/heard
{) Dina Spevack ( )1 ,
Name of Absent Principal Signer"RAMIRgZ V. GHILOTTI BROS. INC." (and
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Place Notary 5ea1 and/or Stamp Above
~2~ Dina 5pevack ~
Name of Absent Principe! Signerthe same persons) described in and whosenames) is/are subscribed to the within orattached instrument in his/her/their authorizedcapacity(ies} ~ as (a) party(ies) thereto, executeor acknowledge executing the same, and thatsaid affiant subscribed his/her name to thewithin instrument as a witness at the request of
(~) C•)Name of Absent Principe! Signer (Again)
(and
Name of Absent Principe! Signer {Again)
WETNESS my hand and official seal.
Srgnafure of Notary Public
OPTIONALThough the information below is not required by law, rt may prove valuable to persons relying on thedocumenf and could prevent fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: See above
Document Date: See attached
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