Contract analysis

I. DIRECTORS & OFFICERS LIABILITY INSURANCE — CURRENT POLICY YEAR (JULY 1, 2021 – JULY 1, 2022) We request the following documents and information relating to each layer of Nexford's current D&O liability insurance tower: A. Primary D&O Policy

1. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the primary Directors & Officers liability insurance policy issued by Vandermeer National Insurance Company, bearing Policy No. VNI-DO-2021-88473, for the policy period July 1, 2021 through July 1, 2022. We understand the policy provides limits of li

2. The complete application submitted to Vandermeer National Insurance Company in connection with the current policy period, including all attachments, schedules, supplemental questionnaires, warranty letters, and any other materials submitted as part of the underwriting process.

3. Any binder or binder confirmation issued by Vandermeer National Insurance Company or Ashford Breckinridge LLP in connection with the binding of this coverage. B. First Excess D&O Policy

4. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the first excess Directors & Officers liability insurance policy issued by Commonwealth Indemnity Group for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $10,000,000 in excess of the un

5. Any follow-form endorsements, coverage difference conditions, or standalone coverage grants contained in this excess policy. C. Second Excess D&O Policy

6. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the second excess Directors & Officers liability insurance policy issued by Graystone Mutual Assurance Co. for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $10,000,000 in excess of the

7. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the third excess Directors & Officers liability insurance policy issued by Pinnacle Re Insurance Ltd. (Bermuda) for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $10,000,000 in excess o

8. Any non-admitted carrier filings, surplus lines filings, or other regulatory documentation associated with the placement of this policy with a Bermuda-domiciled carrier. E. Side-A DIC Policy

9. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the Side-A Difference-in-Conditions ("DIC") Directors & Officers liability insurance policy issued by Harrington Specialty Insurance Co., bearing Policy No. HSI-DIC-2021-00342, for the policy period July 1, 2021 through July 1, 2022. We understand th

10. Any coverage comparison or gap analysis that Ashford Breckinridge LLP or Harrington Specialty Insurance Co. prepared in connection with the placement of the Side-A DIC policy, to the extent such materials are in Nexford's possession. F. D&O Tower Summary

11. Any tower summary chart, placement slip, binder certificate, or program overview prepared by Ashford Breckinridge LLP for the current D&O tower, reflecting the total aggregate limit of $55,000,000 across all layers and the total annual premium of $1,363,450.

12. Any rate-per-million analysis, premium allocation schedule, or benchmarking data provided by Ashford Breckinridge LLP in connection with the current D&O tower placement.

II. DIRECTORS & OFFICERS LIABILITY INSURANCE — PRIOR POLICY YEARS

13. Complete policy forms, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the D&O liability insurance policies at all layers of the tower for the three policy years immediately preceding the current policy year—that is, the policy periods ending July 1, 2021, July 1, 2020, and July 1, 2019, respectively.

14. To the extent that Ashford Breckinridge LLP has served as broker of record for Nexford's D&O program since 2019 or earlier, we request copies of all placement memoranda, broker reports, and program summaries prepared by Ashford Breckinridge LLP for those prior policy years.

15. All prior-year applications, renewal submissions, warranty letters, and supplemental questionnaires submitted to D&O carriers in connection with the policy years identified above.

16. Any Extended Reporting Period ("ERP" or "tail") policies or endorsements obtained in connection with any prior D&O policy year, including documentation reflecting the terms, duration, and premium for any such tail coverage.

17. Any documentation reflecting changes in carrier composition, limits, retentions, or material policy terms from one renewal cycle to the next during the three prior policy years.

III. PRODUCT-LIABILITY / GENERAL LIABILITY INSURANCE — CURRENT POLICY YEAR (JULY 1, 2021 – JULY 1, 2022) We request the following documents and information relating to each layer of Nexford's current product-liability and general liability insurance tower: A. Primary GL/PL Policy

18. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the primary general liability and product-liability insurance policy issued by Midland Casualty & Surety Company, bearing Policy No. MCS-GL-2021-55671, for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limit

19. With respect to the product recall coverage provided under this policy, we request confirmation and documentation of the product recall sub-limit of $2,500,000 per occurrence and $5,000,000 in the aggregate, including the applicable endorsement or coverage section defining the scope of product recall coverage, covered recall expenses, and any applicable exclusions or conditions.

20. Documentation of the completed operations coverage period, which we understand is stated to extend ten (10) years post-delivery. Please provide the specific endorsement or policy provision setting forth this coverage extension and any associated limitations or conditions.

21. The complete application submitted to Midland Casualty & Surety Company in connection with the current policy period, including all attachments, schedules, product inventories, loss summaries, and supplemental questionnaires.

22. Any binder or binder confirmation issued in connection with the binding of this coverage. B. First Excess / Umbrella Policy

23. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the first excess/umbrella liability insurance policy issued by Great Basin Insurance Company for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $25,000,000 in excess of the underlying $

24. Documentation identifying all follow-form provisions, as well as any standalone coverage grants, drop-down provisions, or coverage extensions provided by this umbrella policy that differ from or expand upon the coverage provided by the underlying Midland Casualty primary policy. C. Second Excess Policy

25. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the second excess liability insurance policy issued by Cornerstone Reinsurance Corp. for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $25,000,000 in excess of the underlying $35,000,0

26. The complete policy form, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the third excess liability insurance policy issued by Allegheny Pacific Underwriters, Inc. for the policy period July 1, 2021 through July 1, 2022. We understand this policy provides limits of liability of $15,000,000 in excess of the underlying $60

27. Any tower summary chart, placement slip, binder certificate, or program overview prepared by Ashford Breckinridge LLP for the current PL tower, reflecting the total aggregate limit of $75,000,000 across all layers and the total annual premium of $2,642,900.

28. Any rate-per-million analysis, premium allocation schedule, or benchmarking data provided by Ashford Breckinridge LLP in connection with the current PL tower placement.

IV. PRODUCT-LIABILITY / GENERAL LIABILITY INSURANCE — PRIOR POLICY YEARS

29. Complete policy forms, including all declarations pages, coverage sections, conditions, and exclusions, together with all endorsements, riders, and amendments, for the product-liability and general liability insurance policies at all layers of the tower for the three policy years immediately preceding the current policy year—that is, the policy periods ending July 1, 2021, July 1, 2020, and July 1, 2019, respecti

30. All prior-year applications, renewal submissions, product schedules, loss summaries, and supplemental questionnaires submitted to PL/GL carriers in connection with the policy years identified above.

31. Any Extended Reporting Period ("ERP" or "tail") policies or endorsements obtained in connection with any prior PL/GL policy year, including documentation reflecting the terms, duration, and premium for any such tail coverage.

32. Any documentation reflecting occurrence-based coverage triggers for legacy product deliveries, including any retroactive date endorsements, prior acts coverage, or similar provisions.

33. Any documentation reflecting changes in carrier composition, limits, retentions, or material policy terms from one renewal cycle to the next during the three prior policy years.

V. BROKER SUBMISSIONS AND MARKETING MATERIALS

34. A copy of the broker marketing submission to be circulated by Ashford Breckinridge LLP for the upcoming 2022–2023 renewal cycle. We understand this submission is expected to be circulated to the carrier market on or about May 3, 2022. We request that Nexford provide us with a copy of this submission promptly upon its availability, or authorize Ashford Breckinridge LLP to provide it directly to our team.

35. Copies of the broker marketing submissions circulated by Ashford Breckinridge LLP for the D&O and PL programs for each of the three prior renewal cycles.

36. Any stewardship reports, program analysis reports, coverage benchmarking materials, peer-group comparisons, or market-condition reports provided by Ashford Breckinridge LLP to Nexford during the current or prior three policy years.

37. Copies of all correspondence between Ashford Breckinridge LLP, including specifically Phillip Garza and Tamara Fisk, and Nexford, including specifically Donna Kowalski and Trevor Haines, concerning the incumbent D&O and PL tower placements and any mid-term modifications, endorsement requests, policy corrections, or changes to named insureds or additional insureds during the current or prior policy years.

38. Copies of any carrier audit reports, risk engineering reports, loss control inspection reports, or underwriting survey reports generated by any carrier or third-party risk engineering firm during the current or prior three policy periods, whether relating to the D&O or PL programs.

VI. LOSS RUNS AND CLAIMS HISTORY A. D&O Loss Runs

39. Five-year loss runs from each of the D&O carriers in the current and prior towers, including Vandermeer National Insurance Company, Commonwealth Indemnity Group, Graystone Mutual Assurance Co., Pinnacle Re Insurance Ltd., and Harrington Specialty Insurance Co. We understand that the five-year D&O claims history reflects one reported claim—a shareholder demand letter received in 2020 that was resolved without any

40. All correspondence related to the 2020 shareholder demand letter, including the initial notice of claim or notice of circumstances, any acknowledgment letters from carriers, any coverage determination letters, any reservation of rights letters, any declination letters, and any closing or file-closure correspondence.

41. Any documentation reflecting the allocation of defense costs, if any, incurred in connection with the 2020 shareholder demand letter. B. Product-Liability Loss Runs

42. Five-year loss runs from each of the PL carriers in the current and prior towers, including Midland Casualty & Surety Company, Great Basin Insurance Company, Cornerstone Reinsurance Corp., and Allegheny Pacific Underwriters, Inc. We understand that the five-year PL claims history reflects twelve (12) reported claims, of which nine (9) are closed with total paid losses of $4,720,000 and three (3) remain open with

43. A copy of any actuarial report, loss-modeling analysis, or IBNR (incurred but not reported) reserve analysis prepared by Kessler Quinn Advisory Group. We understand that Kessler Quinn's current IBNR estimate is approximately $2,100,000, yielding a total five-year incurred amount of approximately $15,120,000 (comprising $4,720,000 in paid losses, $8,300,000 in reserves, and $2,100,000 in IBNR).

44. Any loss development triangles, loss ratio analyses, or frequency-severity analyses prepared by Ashford Breckinridge LLP, Kessler Quinn Advisory Group, or any carrier in connection with the PL program. C. Pending Claims Files We request complete claims files, including all correspondence, coverage position letters, reservation of rights letters, defense counsel status reports, and defense cost summaries, for the

45. Complete claims file for the lawsuit styled Higgins v. Nexford Conveyor Systems, LLC et al., Case No. 2021-L-04382, pending in the Circuit Court of Will County, Illinois. This action was filed on September 14, 2021, and the plaintiff alleges a catastrophic crush injury caused by an alleged defect in the emergency stop mechanism on a Model NCS-7200 conveyor system installed at a grain processing facility. The plai

46. All correspondence to and from Midland Casualty & Surety Company relating to this claim, including notice of claim submissions, acknowledgment letters, coverage determination letters, reservation of rights letters (if any), and defense counsel assignment communications.

47. All defense cost reporting, including invoices, fee statements, litigation budgets, and any carrier-imposed billing guidelines applicable to this matter.

48. All pleadings, motions, court orders, and other significant court filings in this matter.

49. All reports, status memoranda, and correspondence from Hollander Byrne & Strauss LLP, including specifically Catherine Byrne and Rafael Mendez, serving as outside litigation counsel for Nexford in this matter. 2. *Consolidated Builders Supply Co. v. Triton Fastener Corp.*

50. Complete claims file for the lawsuit styled Consolidated Builders Supply Co. v. Triton Fastener Corp., Case No. 1:21-cv-08914, pending in the United States District Court for the Northern District of Illinois. This action was filed on November 2, 2021, and the plaintiff alleges structural failure of Grade 8 hex bolts manufactured by Triton Fastener Corp. in a commercial building project, resulting in a partial wa

51. All correspondence to and from Midland Casualty & Surety Company relating to this claim, including notice of claim submissions, acknowledgment letters, coverage determination letters, reservation of rights letters (if any), and defense counsel assignment communications.

52. All defense cost reporting, including invoices, fee statements, litigation budgets, and any carrier-imposed billing guidelines applicable to this matter.

53. All pleadings, motions, court orders (including the February 11, 2022 order denying the motion to dismiss), and other significant court filings in this matter.

54. All reports, status memoranda, and correspondence from Hollander Byrne & Strauss LLP serving as outside litigation counsel for Triton Fastener Corp. in this matter.