Contract analysis

1. Directors & Officers Liability Insurance Tower — Renewal Binder Summary 1.1 Tower Structure Confirmed C&H has confirmed that the renewed D&O tower is structured as set forth in the table below. All layers, carriers, limits, retentions, and policy numbers reflected in the binders match the tower design authorized by the Board Resolution and the final negotiated terms. Carrier Change Noted. As reflected in the table

2. Product-Liability / General Liability Insurance Tower — Renewal Binder Summary 2.1 Tower Structure Confirmed C&H has confirmed that the renewed PL tower is structured as set forth in the table below. All layers, carriers, limits, retentions, and policy numbers reflected in the binders match the tower design authorized by the Board Resolution and the final negotiated terms. Product Recall Sub-Limit. The Midland Cas

3. Summary of Follow-Up Items Based on C&H's review, the following two items require corrective endorsements from the applicable primary carriers:

1. Vandermeer National Insurance Company (D&O Primary, Policy No. VNI-DO-2022-91205): A corrective endorsement must be issued to broaden the definition of "Claim" to include informal regulatory inquiries and preliminary investigations by regulatory bodies (including OSHA, CPSC, and state attorneys general), consistent with the negotiated terms set forth in Item 6 of the D&O negotiation points in C&H's June 13, 2022 m

2. Midland Casualty & Surety Company (PL Primary, Policy No. MCS-GL-2022-58904): The formal endorsement reflecting the increased product recall sub-limit of $5,000,000 per occurrence / $10,000,000 aggregate (Endorsement No. MCS-RC-2022, "Product Recall Expense Coverage — Amended Limits") must be prepared, executed, and attached to the binder and the issued policy. The endorsement should confirm the increased limits,

4. Overall Conclusions and Confirmation Subject to the two discrepancies identified in Sections 1.3 and 2.3 above — both of which are capable of resolution through the issuance of corrective endorsements — C&H confirms that the binders for both the D&O and PL towers are substantially consistent with the terms negotiated and authorized by the Nexford Board of Directors. In summary: • The renewal was bound on June 28,

5. Copies of Reviewed Binders Copies of all binders reviewed by C&H in connection with this engagement are being returned to Nexford under separate cover, via overnight courier. The following materials are enclosed with or accompany this letter: (a) Copies of the binders for all nine carrier placements across the D&O and PL towers, as received from Ashford Breckinridge LLP between June 29 and July 6, 2022; (b) C&H's