Contract analysis

I. PURPOSE AND LEGAL OBLIGATION Calderwood & Harkness LLP represents Vantage Mobility Systems Corp. ("Vantage" or "VMS") in the above-referenced putative class action and representative action brought under the California Private Attorneys General Act ("PAGA"), Labor Code Section 2698 et seq. The action was filed on August 1, 2025, in the Superior Court of California, County of San Bernardino, and has been assigned C

II. SUMMARY OF THE LITIGATION To provide context for the scope of the litigation hold, the following is a summary of the key factual and legal allegations in the complaint. A. Named Plaintiff and Employment History Named plaintiff Gloria Reyes was employed as a non-exempt, hourly Production Associate assigned to Trim Line B at the Fontana Plant. Ms. Reyes was employed by VMS from March 12, 2021 through January 19, 20

1. First Cause of Action — Meal Period Violations (Cal. Lab. Code §§ 226.7, 512): Alleging that VMS failed to provide lawful, uninterrupted, duty-free meal periods of not less than thirty (30) minutes for shifts exceeding five (5) hours, and failed to provide second meal periods for shifts exceeding ten (10) hours.

2. Second Cause of Action — Rest Period Violations (Cal. Lab. Code § 226.7): Alleging that VMS failed to authorize and permit compliant ten (10)-minute rest periods for every four (4) hours of work or major fraction thereof.

3. Third Cause of Action — Unpaid Wages (Cal. Lab. Code §§ 204, 1194): Alleging that VMS's time-rounding policy and auto-deduction practices resulted in the systematic underpayment of wages owed to class members.

4. Fourth Cause of Action — Inaccurate Wage Statements (Cal. Lab. Code § 226): Alleging that wage statements issued to class members did not accurately reflect all hours worked, all wages earned, or all applicable deductions, in violation of the itemized wage statement requirements.

5. Fifth Cause of Action — Waiting Time Penalties (Cal. Lab. Code § 203): Alleging that VMS willfully failed to pay all wages due to employees upon separation from employment.

6. Sixth Cause of Action — Unfair Competition (Cal. Bus. & Prof. Code § 17200 et seq.): Alleging that the meal and rest break violations, wage underpayments, and other Labor Code violations constitute unlawful, unfair, or fraudulent business practices.

7. Seventh Cause of Action — PAGA Penalties (Cal. Lab. Code § 2698 et seq.): Seeking civil penalties on behalf of the State of California and all aggrieved employees for each of the underlying Labor Code violations described above. D. Central Factual Allegations The complaint is centered on three primary factual allegations that drive each of the seven causes of action: (a) Automatic Meal Period Deduction. The compla

III. SCOPE OF LITIGATION HOLD — PERSONS SUBJECT TO HOLD The following individuals and categories of individuals are subject to this litigation hold and are required to preserve all documents and ESI within their possession, custody, or control that fall within the categories described in Section IV below. A. Primary Custodians The following individuals are designated as primary custodians whose documents and ESI will

1. Priya Nandakumar, General Counsel, Vantage Mobility Systems Corp.

2. Sandra Olsen, Vice President of Human Resources, Vantage Mobility Systems Corp.

3. Marcus Gutierrez, Fontana Plant Manager, Vantage Mobility Systems Corp.

4. All production line supervisors and shift leads on all six production lines at the Fontana Plant, for both the first shift (5:00 AM – 1:30 PM) and the second shift (2:00 PM – 10:30 PM). The six production lines are: • Body Line A • Body Line B • Trim Line A • Trim Line B • Paint • Final Assembly/QC Marcus Gutierrez is directed to provide Calderwood & Harkness LLP with a complete roster of all current and former su

5. All HR department staff at the Fontana Plant responsible for timekeeping administration, payroll processing, employee discipline, and policy implementation. This includes, but is not limited to, HR generalists, HR coordinators, payroll clerks, and benefits administrators assigned to the Fontana Plant during the relevant period.

6. All IT personnel responsible for maintaining, administering, configuring, or supporting the ApexTime 6.2 timekeeping system at the Fontana Plant, including any IT administrators who had system-level access to modify configuration settings, rounding rules, or auto-deduction parameters. B. Third-Party Custodians In addition to VMS personnel, the following third-party entities and individuals may possess relevant doc

1. Apex Workforce Solutions, Inc., located at 8500 Shoal Creek Boulevard, Suite 200, Austin, Texas 78757. Apex is the vendor and host of the ApexTime 6.2 electronic timekeeping and payroll platform used by VMS at the Fontana Plant. Apex maintains time-punch data, system configuration records, audit logs, and related data on its servers and/or cloud infrastructure. Calderwood & Harkness LLP will prepare and send a for

2. Any other external payroll service providers, HR consulting firms, staffing agencies, or third-party administrators who handled, processed, or maintained employee time data, payroll data, or compensation records for non-exempt hourly employees at the Fontana Plant during the period from August 4, 2021 through the present. If VMS utilized any such providers during the relevant period, Sandra Olsen and Priya Nandaku

IV. CATEGORIES OF DOCUMENTS AND ESI TO BE PRESERVED The litigation hold applies to all documents and ESI—whether in paper or electronic form, regardless of the medium or format in which they are stored—that fall within the following categories. The term "documents" as used herein is intended in the broadest possible sense and includes originals, copies, drafts, revisions, notes, memoranda, reports, spreadsheets, pres

1. All ApexTime 6.2 electronic time-punch records for all non-exempt hourly employees at the Fontana Plant from January 1, 2020 through the present, including but not limited to: • Raw clock-in and clock-out data (i.e., the actual, unrounded times recorded by the system when employees badge in or badge out); • Rounded time entries (i.e., the adjusted times reflecting the nearest 6-minute / 0.1 hour increment rounding

2. ApexTime 6.2 system configuration records, settings, and audit logs, including specifically: • The automatic 30-minute meal period deduction configuration that was in effect from approximately January 2020 through March 15, 2024, including the specific system parameters, rules, and settings that governed how the deduction was applied; • The rounding policy configuration (nearest 6-minute / 0.1 hour increment), inc

3. All backup copies of ApexTime databases and any archived time data stored by VMS or by Apex Workforce Solutions, Inc. on VMS's behalf, regardless of the storage medium (e.g., backup tapes, archival servers, cloud storage). B. Payroll Records

1. All payroll records maintained by or generated through Apex Workforce Solutions, Inc. or any other payroll processing system for non-exempt hourly employees at the Fontana Plant from August 4, 2021 through the present.

2. Pay stubs, earnings statements, and wage statements for all putative class members for the class period, including all information required to be set forth on itemized wage statements under California Labor Code Section 226(a).

3. Payroll registers, payroll journals, and payroll summary reports for each pay period during the class period, reflecting gross wages, net wages, deductions, hours worked, overtime hours, and all other compensation paid to non-exempt hourly employees at the Fontana Plant.

4. Records of meal period premium payments and rest period premium payments (one additional hour of pay at the employee's regular rate of compensation), if any such payments were made to employees at the Fontana Plant during the class period. If no such payments were made, that fact should be documented and communicated to Calderwood & Harkness LLP.

5. Records of waiting time penalty payments made to employees upon separation from employment, if any, during the class period.

6. Tax records, including W-2 forms and payroll tax filings, to the extent they reflect compensation paid to non-exempt hourly employees at the Fontana Plant during the class period. C. Employee Handbook and Written Policies

1. The Employee Handbook (Fontana Plant), all versions in effect at any time during the class period (August 4, 2021 – present), including the revision dated June 2022, with specific attention to Section 4.3 (Meal & Rest Break Policy). Each version of the handbook must be preserved separately, along with any cover memoranda, distribution records, or employee acknowledgment forms associated with each version.

2. Any prior or subsequent versions of the handbook or any standalone meal and rest break policies, guidelines, or procedures in effect at the Fontana Plant during the class period.

3. Any standalone memoranda, bulletins, posters, notices, or written communications to employees regarding meal and rest break policies, procedures, rights, or obligations, including any postings required under California Labor Code Section 226.7 or applicable Wage Orders.

4. Written meal period waiver agreements, if any, signed by employees at the Fontana Plant during the class period, including any form agreements permitting employees to waive their meal periods for shifts of six hours or less. D. Supervisor Training Materials

1. All training materials, presentations, slide decks, manuals, handouts, quick-reference guides, and instructional documents relating to meal and rest break compliance that were provided to supervisors, shift leads, and managers at the Fontana Plant during the class period. This includes the most recent version of such materials (last updated approximately September 2023) and all prior versions.

2. Training attendance records, sign-in sheets, and completion certifications documenting which supervisors, shift leads, and managers attended or completed training on meal and rest break compliance, and the dates of such training.

3. Any written or electronic training curricula for new-hire orientation at the Fontana Plant that included instruction or information regarding meal and rest break policies, employees' rights to take meal and rest breaks, or the procedures for recording meal and rest break time.

4. Any training materials or communications specifically addressing the transition from the auto-deduction system to the manual clock-out/clock-in requirement for meal periods in March 2024. E. Internal Audit and Corrective Action Documents

1. The internal HR audit memorandum dated February 8, 2024, authored by Sandra Olsen, Vice President of Human Resources, which identified the compliance risk associated with the automatic meal period deduction feature in the ApexTime 6.2 system. The original memorandum, all drafts, supporting analyses, data compilations, and any attachments or exhibits referenced therein must be preserved.

2. The corrective action memorandum dated March 10, 2024, directing the discontinuation of the auto-deduction feature and the implementation of the manual clock-out/clock-in requirement for meal periods. All drafts, supporting documents, implementation plans, and communications related to this corrective action must be preserved.

3. All supporting documents, drafts, notes, analyses, spreadsheets, data extracts, and correspondence (whether internal or external) related to the February 2024 audit and the March 2024 corrective action, including any communications between Sandra Olsen, Marcus Gutierrez, Priya Nandakumar, IT personnel, and/or Apex Workforce Solutions, Inc. regarding the identification and remediation of the auto-deduction issue.

4. Any prior or subsequent internal audits, compliance reviews, self-assessments, or risk assessments relating to wage-and-hour practices, meal period compliance, rest period compliance, timekeeping accuracy, or payroll practices at the Fontana Plant, regardless of whether such audits were conducted by VMS personnel, outside counsel, or third-party consultants. F. Production Schedules, Shift Schedules, and Overtime R

1. Daily and weekly production shift schedules for all six production lines (Body Line A, Body Line B, Trim Line A, Trim Line B, Paint, and Final Assembly/QC) for both the first shift (5:00 AM – 1:30 PM) and the second shift (2:00 PM – 10:30 PM), from August 4, 2021 through the present.

2. Overtime authorization logs, overtime requests, and overtime approval records, including any forms, electronic approvals, or other documentation reflecting overtime worked by non-exempt hourly employees at the Fontana Plant during the class period.

3. Records of "surge" production periods, including dates, duration, affected production lines, the reasons for the surge designation, any scheduling changes implemented during surge periods, and any communications (written or electronic) to supervisors or employees regarding modified break schedules or production expectations during surge periods.

4. Records reflecting shifts exceeding ten (10) hours (which trigger second meal period obligations under California Labor Code Section 512(a)) and shifts exceeding twelve (12) hours, including the identity of affected employees, the dates of such shifts, and whether second meal periods were provided or waived. G. Personnel Files

1. The complete personnel file for Gloria Reyes, including but not limited to: her employment application, offer letter, onboarding documents, signed acknowledgments (including any meal and rest break policy acknowledgments), performance reviews, disciplinary records, attendance records, any complaints or grievances she filed, separation documentation (including any resignation letter, termination notice, or exit int

2. Personnel files and employment records for all putative class members—approximately 3,550 current and former non-exempt hourly employees at the Fontana Plant—are also subject to this hold. Given the volume involved, collection and review of these files will be conducted in phases as directed by Calderwood & Harkness LLP. In the interim, no personnel files for any current or former non-exempt hourly employees at th

3. Employee rosters, headcount reports, and staffing reports for the Fontana Plant from August 4, 2021 through the present, including rosters reflecting employee name, Employee ID, job title, department/line assignment, shift assignment, hire date, and termination date (if applicable). H. Electronic Communications All emails, text messages (including SMS and Westmark Software), instant messages (including messages on

1. Meal period and rest break policies, practices, scheduling, or compliance at the Fontana Plant;

2. The ApexTime 6.2 auto-deduction feature, including its configuration, operation, modification, or deactivation, or any other timekeeping practices or system settings;

3. Employee complaints—whether formal or informal—about missed, shortened, late, interrupted, or on-duty meal or rest breaks at the Fontana Plant;

4. The February 2024 internal audit conducted by Sandra Olsen and the March 2024 corrective action directing the discontinuation of the auto-deduction feature;

5. Production quotas, surge production periods, line-speed directives, or other operational decisions that may have affected break scheduling or the ability of employees to take timely and uninterrupted meal and rest breaks;

6. Gloria Reyes specifically, including any complaints, grievances, disciplinary actions, performance issues, or other matters involving her;

7. This litigation, the PAGA notice dated May 22, 2025 (LWDA No. LWDA-CM-2025-831447), or any prior threatened claims, demand letters, or communications from employees or their counsel regarding wage-and-hour practices at the Fontana Plant; and

8. Any communications with VMS's insurer, Ridgeway National Insurance Company, or its claims adjuster regarding this matter or any related wage-and-hour claims. The relevant date range for email and ESI collection is January 1, 2020 through the present. This date range extends back before the class period to capture any foundational documents, system configuration decisions, or policy discussions that may be relevant

I. Complaints and Investigations

1. All internal employee complaints—whether written, verbal and documented, or submitted through any hotline, anonymous tip line, open-door policy process, or other complaint mechanism—regarding missed, shortened, late, interrupted, or on-duty meal or rest breaks at the Fontana Plant, from August 4, 2021 through the present.

2. All investigation files, notes, findings, and reports generated in response to any such complaints, including the identity of the investigator, the dates of the investigation, the conclusions reached, and any corrective actions taken.

3. Any communications with or complaints filed with the California Division of Labor Standards Enforcement ("DLSE"), the California Labor & Workforce Development Agency ("LWDA"), the U.S. Department of Labor, or any other federal, state, or local governmental agency regarding wage-and-hour practices at the Fontana Plant, including any audit letters, information requests, citations, penalties, or settlement agreements

1. The Ridgeway National Insurance Company Employment Practices Liability ("EPL") policy (Policy No. EPL-VMS-2024-07821), including all endorsements, exclusions, amendments, and declarations pages, for the policy period July 1, 2024 – July 1, 2025, and any prior EPL policy periods that may be implicated by the class period (August 4, 2021 – present).