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Litigation Statement The following cases have all been settled: Oceanside at Beverly Beach Condominium Association, Inc. vs. CPH Engineers, Inc. et al Case No. 2012 -CA- 001020 WEMED No. 08662 -02316; Policy No. USS 10 20263 Origination Date- August 2010 Settlement Date- September 2013 CPH Engineers, Inc. was named as one of twenty defendants in a suit by Oceanside at Beverly Beach Condominium Association, Inc. The Developers went into bankruptcy and the project was never completed. The Developers owed in excess of $1 million to the General Contractor, subcontractors, and consultants including CPH Engineers, Inc. The suit is for damages in excess of $1,005,000. All damages claimed are related to the lack of maintenance for an ocean front condominium or punch list items not completed due to lack of payment to all Defendants. In order to avoid defense costs and in order to obtain a future full indemnity, this case was settled in September 2013 and CPH paid $45,000 as part of an overall settlement. In addition, the Condominium Association has agreed to indemnify CPH from any future claims from any parties. Posen Construction Inc. vs. Lee County, CPH, et al. — Liberty File No. AESPC002759 Origination Date- November 2011 Settlement Date- May 2013 CPH was one of the parties being sued by Posen Construction, Inc. for negligence. CPH provided the utility relocation design plans for Lee County along Summerlin Road between Cypress Lake Drive and Boy Scout Road. The plans were developed using the survey and roadway design plans provided by Lee County. CPH used this information to determine utility conflict information and, in coordination with Lee County Utilities, design new facilities that were not in conflict with the proposed roadway improvements. As part of the installation of the new facilities, the existing pipelines were to be either abandoned in place or removed as called out on the design plans. Posen's assertion of negligence is hinged on encountering asbestos cement pipe. CPH was not responsible for any survey or field investigation to verify piping materials. This information was provided to CPH by the County. According to the Plans and Specifications, the Contractor, Posen, was responsible for the verification of the pipe and notification of any issues to the County. Accordingly, CPH filed to have the suit dismissed based on this fact. This case was dismissed in May 2013. Par Builders, Inc. vs. CPH Engineers, Inc. - RA &MCO File No. 090157 Origination Date- December 2008 Settlement Date- January 2012 CPH is being sued by PAR Builders, Inc. for contractual performance. CPH does not have an agreement with this company. Our contract for engineering was made with Hector Rivera of Edifica. Neither Hector Rivera nor Edifica are named in the law suit. PAR is alleging that CPH indicated that the permit process would take 6 months and that CPH delayed their project by not securing permits in a timely fashion. CPR's contract makes no representation to a schedule for obtaining permits, nor can CPH be responsible for the actions of the governmental agencies when the agencies themselves do not have timeline by which permits are to be issued. In addition, PAR alleges that CPH did not use correct building foot print to develop the site plan, grading plan, etc. Hector Rivera or Edifica provided CPH the building footprint to use as a basis for our design. Allegations were also made regarding the survey and CPH's contract states that the survey is to be provided by the Owner. Our position is that PAR needs to direct any issues related to the survey to Javier Bidot who was the Surveyor hired by the Owner. This case was settled in January 2012.