Contract analysis

1. Purpose of This Letter This letter confirms the successful resolution and formal closure of the above-referenced matter. As you know, Calderwood & Harkness LLP ("C&H" or the "Firm") was retained by Stonefield Logistics Group Inc. ("SLG") on February 5, 2024, to evaluate coverage, prepare a comprehensive coverage opinion, and pursue recovery under the Inland Marine Cargo Legal Liability Policy No. IML-TX-0039821-20

2. Summary of Matter Resolution 2.1 Settlement Agreement On August 12, 2024, Stonefield Logistics Group Inc. and Meridian Surety & Indemnity Company executed a Settlement Agreement and Mutual Release (the "Settlement Agreement") that fully and finally resolves all disputes between the parties arising from or related to the November 17, 2023 loss event and Policy No. IML-TX-0039821-2023. The material terms of the Sett

3. Procedural History Summary For your records, we provide the following chronological summary of the key events in this matter: November 17, 2023: A fire erupted at approximately 2:14 a.m. CST in Warehouse Building C at SLG's Midland Facility, located at 4501 East County Road 130, Midland, Texas 79706. Building C was declared a total structural loss. The fire destroyed all cargo stored within the facility, as descri

4. Final Fee and Cost Summary 4.1 Legal Fees The total legal fees billed to SLG in connection with this matter are $198,450.00. All fees were billed on an hourly basis with no contingency component, as set forth in the Firm's engagement letter dated February 5, 2024. The engagement team and applicable hourly rates were as follows: The original estimated fee budget for the pre-litigation phase of this engagement, as c

5. Document Retention Recommendations We strongly advise SLG to retain all documents related to this matter in a secure, organized file — whether physical, electronic, or both — for a minimum period consistent with the applicable Texas statutes of limitation and with SLG's corporate document-retention policy. Given the four-year statute of limitations for breach of contract claims under Texas law, and the potential f

1. The executed Settlement Agreement and Mutual Release dated August 12, 2024;

2. All correspondence with Meridian Surety & Indemnity Company, including without limitation the Reservation of Rights letter dated December 4, 2023, and the coverage denial letter dated January 22, 2024;

3. The complete Meridian Surety & Indemnity Company Inland Marine Cargo Legal Liability Policy No. IML-TX-0039821-2023 (effective April 1, 2023 through March 31, 2024), including all endorsements, schedules, and declarations;

4. The Ridgeline Forensic Consultants LLC origin-and-cause report dated March 15, 2024, including all supporting photographs, diagrams, and laboratory analyses;

5. The Whitlock & Associates, CPAs, P.C. sworn proof of loss and all supporting documentation, including inventory schedules, shipper manifests, receiving records, and replacement-cost valuations;

6. SLG's Warehouse Layout Plan Rev. 7 (June 2023) for the Midland Facility;

7. All NFPA 25 inspection records pertaining to the Midland Facility, including quarterly visual inspection reports and annual full-flow test records;

8. The Lone Star Fire Protection Inc. engagement letter dated August 28, 2023, and all related communications;

9. Wire transfer confirmations for the August 16, 2024 settlement payment;

10. All Calderwood & Harkness LLP invoices and the engagement letter dated February 5, 2024; and

11. Any other documents or communications related to the November 17, 2023 loss event, the claim, or the coverage dispute. We remind you that the confidentiality provision contained in the Settlement Agreement is an ongoing obligation that survives the closing of this matter. We recommend that SLG communicate the existence and scope of this confidentiality obligation to all relevant SLG personnel who may have knowled

6. Prospective Risk-Management Recommendations While the following observations fall outside the formal scope of our engagement in this matter, we believe they may be of value to SLG in mitigating future exposure to similar risks. We offer them for your consideration and recommend that they be discussed with SLG's internal risk management team and relevant advisors. 6.1 NFPA 25 Compliance — Annual Full-Flow Sprinkler

7. Matter Closure We hereby confirm that Calderwood & Harkness LLP Matter No. 1012-00003 is closed effective August 19, 2024. The Firm's representation of Stonefield Logistics Group Inc. in this matter has concluded as of this date. Please note that the closure of this matter does not create any ongoing duty on the part of Calderwood & Harkness LLP to monitor, advise on, or take any further action regarding the Merid

8. Contact Information Should you have any questions regarding this letter, the Settlement Agreement, the final invoice, or the document-retention and risk-management recommendations set forth above, please do not hesitate to contact either of the undersigned: Howard Bellamy Partner Calderwood & Harkness LLP 700 Louisiana Street, Suite 4500 Houston, TX 77002 Direct: (713) 554-8124 Email: hbellamy@calderwoodharkness.c

1. Final Invoice and Fee Summary (Matter No. 1012-00003) — submitted under separate cover

2. Copy of executed Settlement Agreement and Mutual Release dated August 12, 2024 (for client records) Cargo Description | Shipper / Owner | Loss Amount 312 joints of 5-1/2" P-110 casing pipe | Permian Wellhead Services LLC | $1,842,000.00 47 pallets of completion chemicals | Cantera Chemical Supply Co. | $1,126,500.00 18 crates of downhole tools and sensors | Triton Subsurface Technologies Inc. | $987,000.00 Miscell