Contract analysis

I. Introduction and Purpose of This Memorandum This memorandum provides Lumos Analytics Inc. ("Lumos" or the "Company") with a comprehensive overview of the multi-step process for obtaining lawful permanent resident status (commonly referred to as "green cards") for four foreign-national executives through the PERM labor certification and EB-2 immigrant visa petition process. The purpose of this advisory is to ensure

II. Overview of the Immigration Framework A. Employment-Based Second Preference (EB-2) Classification The employment-based second preference ("EB-2") immigrant visa category, codified at Section 203(b)(2) of the Immigration and Nationality Act ("INA"), 8 U.S.C. § 1153(b)(2), is designated for individuals who qualify as "Advanced Degree Professionals" or who can demonstrate "exceptional ability" in the sciences, arts,

III. Phase 1: PERM Labor Certification Process — Detailed Steps The PERM labor certification process consists of six principal steps, each of which is described in detail below. It is essential that Lumos understand and participate actively in each step, as the employer bears the primary legal obligations throughout this phase. A. Step 1: Prevailing Wage Determination (PWD) Before Lumos may commence any recruitment a

1. Job Order with State Workforce Agency (SWA). Lumos must place a job order with the State Workforce Agency for the state in which the position is located. For California, the SWA is the California Employment Development Department ("EDD"), and the job order must be posted through the CalJOBS online portal (www.caljobs.ca.gov). The job order must remain active for a minimum of 30 consecutive business days. C&H will

2. Two Sunday Print Advertisements. Lumos must place two separate advertisements on two different Sundays in a newspaper of general circulation in the area of intended employment. Each advertisement must include the employer's name, a description of the job opportunity, the geographic area of employment, and instructions for how applicants may apply. C&H has identified The Peninsula Gazette (780 Hamilton Avenue, Palo

3. Internal Posting / Notice of Filing. The job opportunity must be posted internally at the Lumos worksite (2240 Embarcadero Way, Suite 600, Palo Alto, CA 94303) for a minimum of 10 consecutive business days in a conspicuous location readily accessible to all employees, such as a break room, common area bulletin board, or employee intranet page. C&H will provide a template Notice of Filing that includes the job titl

4. Employer Website Posting. The job opportunity must be posted on the Lumos Analytics Inc. corporate careers website (or equivalent publicly accessible employment page) for a period concurrent with the recruitment campaign.

5. Job Search Website Posting. The job opportunity must be posted on at least one job search website other than the employer's own website. C&H recommends posting on a major national job board such as Indeed, Westmark Health IT, or Penmark Technologies.

6. Filing of the Job Order with the SWA. As noted above, this step overlaps with Step 1 and ensures the SWA posting is filed in compliance with regulatory requirements.

7. Posting at a Location Physically Accessible to Employees. This step overlaps with Step 3 (the internal posting requirement) and ensures that the notice is placed in a location where it will be seen by existing Lumos employees. Three Additional Recruitment Steps (20 CFR § 656.17(e)(1)(ii)) In addition to the seven mandatory steps, Lumos must conduct at least three additional recruitment steps selected from the regu

IV. Phase 2: I-140 Immigrant Petition A. Filing the I-140 Petition Following PERM labor certification, C&H will prepare and file Form I-140 (Immigrant Petition for Alien Workers) with the USCIS Texas Service Center for each of the four beneficiaries. The I-140 petition is the vehicle through which the employer formally petitions USCIS to classify the beneficiary as an EB-2 Advanced Degree Professional and establishes

V. Key Employer Obligations Under 20 CFR Part 656 Throughout the PERM labor certification process, Lumos Analytics Inc. bears significant legal obligations as the petitioning employer. These obligations are established by the DOL's PERM regulations at 20 CFR Part 656 and are reinforced by the employer's attestations on the ETA Form 9089. Failure to comply with these obligations can result in denial of the PERM applic

VI. Estimated Timeline The following table presents a master timeline for all four cases, from the date of engagement through estimated I-140 approval. All dates are estimates based on current agency processing times and are subject to change based on DOL and USCIS workload, the occurrence of audits or Requests for Evidence, and the timely provision of required documentation by Lumos. C&H will provide updated timelin

VII. Fee Structure and Cost Summary The following summarizes the agreed-upon fees for this engagement, as set forth in the Engagement Letter dated June 12, 2023, between Calderwood & Harkness LLP and Lumos Analytics Inc.: The flat legal fee of $12,500 per beneficiary covers all C&H professional services for both the PERM labor certification phase and the I-140 petition filing phase, including prevailing wage request

VIII. Lumos Action Items and Required Documentation The success and efficiency of the PERM and I-140 process depend in significant part on the timely provision of required documents and information by Lumos. This section summarizes the documents and information that C&H will need from Lumos at each stage of the engagement. Immediate Action Items (for PWD Filing — Due by June 21, 2023) To enable C&H to file the prevai

1. Finalized job descriptions for all four positions, including a detailed description of duties, minimum education requirements (degree level and field of study), minimum experience requirements (years and type of experience), and any special requirements (e.g., specific certifications, technologies, or skills). C&H can provide templates or guidance for structuring these descriptions to comply with DOL requirements.

2. Confirmation of offered salaries for each position, as stated in Section III.A above. If any offered salary has changed or is expected to change, please advise C&H immediately.

3. Organizational charts showing the reporting structure for each role, including the beneficiary's direct supervisor, direct reports, and position within the relevant business unit.

4. Confirmation of worksite address — 2240 Embarcadero Way, Suite 600, Palo Alto, CA 94303. If any of the four beneficiaries will be assigned to a different primary worksite, please advise C&H so that the geographic area of employment can be adjusted accordingly. For the Recruitment Phase (October – November 2023)

5. Designation of internal contact to receive and log resumes. C&H recommends that Janelle Kwon serve as the primary internal contact for receiving and logging all applications and resumes submitted by U.S. workers in response to the recruitment campaign. The designated contact should maintain a centralized log of all applicants and should promptly forward all resumes and applications to C&H for review.

6. Coordination with Broadgate Compliance Services LLC for the placement of required advertisements. Lumos should authorize Broadgate to act on the Company's behalf for advertising placement and should promptly execute any vendor agreements or authorizations required by Broadgate.

7. Posting of internal notices at the Palo Alto worksite for 10 consecutive business days. C&H will provide a template Notice of Filing for each position. Lumos should post each notice in a conspicuous location at the worksite (e.g., a common-area bulletin board, break room, or reception area) and should document the posting and takedown dates, ideally with a dated photograph of the posted notice.

8. Review of received resumes and participation in applicant evaluations against minimum requirements. Lumos's hiring managers and/or HR team will need to review resumes received through the recruitment campaign and provide C&H with their assessment of whether each applicant meets the minimum requirements for the position. C&H will guide Lumos through the evaluation process and will document all applicant disposition

9. Signed employer attestation pages on ETA Form 9089, executed by the authorized signatory (Marcus Whitfield or Janelle Kwon). C&H will prepare the form and arrange for electronic signature through the DOL's FLAG system.

10. Current employee headcount and corporate information as required for the ETA Form 9089, including the Company's Federal Employer Identification Number (FEIN), year of incorporation, and gross annual income. For I-140 Filing (February – March 2024)

11. FY 2022 and FY 2023 federal income tax returns (IRS Form 1120 or equivalent) or audited financial statements for FY 2022 and FY 2023, as required to demonstrate the Company's ability to pay the offered wage. See Section IV.C above.

12. Annual report (if available) or other public financial disclosures.

13. Payroll records showing current wages paid to each beneficiary, including recent pay stubs, W-2 forms, or payroll summaries.

14. Executed employer support letters — C&H will draft these letters for signature by CEO Priya Chandrasekaran and VP People Operations Sonia Elliston. The letters will confirm the bona fide job offer, the offered salary, the beneficiary's qualifications, and the Company's intent to employ the beneficiary permanently.

15. Copies of each beneficiary's educational credentials (diplomas, transcripts, degree certificates), credential evaluations (for foreign degrees), and current immigration status documentation (H-1B or L-1A approval notices, Form I-94 records, passport biographical pages). C&H will issue specific document requests and reminders in advance of each phase to ensure that Lumos has adequate lead time to compile the requi

IX. Important Legal Considerations and Risk Factors This section highlights several important legal considerations and risk factors that Lumos should be aware of as the PERM and I-140 process proceeds. A. PERM Audit Risk The DOL randomly audits a percentage of all PERM applications filed through the FLAG system. The current audit rate is estimated at approximately 20–30% of all applications, though the actual rate fl