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CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT

CALDERWOOD & HARKNESS LLP Attorneys at Law 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606 Telephone: (312) 555-7800 Facsimile: (312) 555-7801

April 1, 2022

VIA HAND DELIVERY AND ELECTRONIC MAIL

Tara Svendsen, Esq. General Counsel Nexford Industrial Holdings Inc. 500 Commerce Drive, Suite 400 Schaumburg, Illinois 60173

Catherine "Cat" Donnelly Vice President, Human Resources Nexford Industrial Holdings Inc. 500 Commerce Drive, Suite 400 Schaumburg, Illinois 60173

Re: LITIGATION HOLD NOTICE — Preservation of Documents and Electronically Stored Information

Matter: Darren K. Maciejewski v. Nexford Industrial Holdings Inc., Case No. 2022-L-002847, Circuit Court of Cook County, Illinois, County Department, Law Division

CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT

Dear Ms. Svendsen and Ms. Donnelly:

I. Introduction and Purpose of the Hold

Calderwood & Harkness LLP represents Nexford Industrial Holdings Inc. ("Nexford" or the "Company") in the above-referenced litigation. I am writing in my capacity as the responsible partner on this engagement, on behalf of the Calderwood & Harkness engagement team, to issue this formal litigation hold directive.

As you are aware, a complaint was filed on March 15, 2022, in the Circuit Court of Cook County, Illinois, County Department, Law Division, by Darren K. Maciejewski ("Plaintiff" or "Maciejewski"), a former Senior Quality Assurance Supervisor at Nexford's manufacturing facility located in Elgin, Illinois. The complaint alleges that Mr. Maciejewski was terminated in retaliation for engaging in protected activity, specifically the reporting of safety concerns regarding chemical storage conditions at the Elgin plant. Service of process was effectuated on March 22, 2022, upon CT Agents Inc., Nexford's registered agent for service of process, at 208 South LaSalle Street, Suite 814, Springfield, Illinois 62701. Calderwood & Harkness filed its appearance on behalf of Nexford on April 4, 2022.

This letter constitutes a formal litigation hold directive requiring the immediate preservation of all documents, electronically stored information ("ESI"), and tangible things potentially relevant to the claims and defenses in this matter. The hold is directed to all officers, employees, departments, and agents of Nexford who may possess, control, or have access to such materials.

As a party to pending litigation, Nexford has clear and enforceable legal obligations to preserve all evidence that is relevant or potentially relevant to the claims asserted by the Plaintiff, as well as to any defenses that the Company may assert. These preservation obligations arise under both Illinois law and applicable federal law, and attach once litigation is either reasonably anticipated or actually pending. The failure to comply with these obligations may result in court-imposed sanctions, including but not limited to adverse inference instructions to the jury, monetary penalties, evidentiary preclusion, or other remedial measures that could materially and adversely affect the outcome of this case.

This litigation hold is effective immediately upon your receipt of this letter and supersedes any document retention or destruction policies, schedules, or practices that might otherwise apply to the categories of materials described herein. This includes, without limitation, any routine purge schedules, auto-delete configurations for email or electronic files, backup tape rotation protocols, or periodic disposal of physical records. No documents or ESI falling within the scope of this hold may be destroyed, deleted, altered, overwritten, or discarded for any reason unless and until Calderwood & Harkness provides written notice that the hold has been released.

We appreciate the seriousness with which Nexford's leadership has already approached this matter and request your immediate cooperation in disseminating and enforcing the instructions set forth below.

II. Summary of the Litigation

In order to ensure that all relevant categories of documents and information can be identified and preserved, we provide the following summary of the key facts and allegations at issue in this litigation.

The Plaintiff. Darren K. Maciejewski, age 47, was employed by Nexford from June 12, 2017, through his termination on September 24, 2021. During his tenure, Maciejewski held the position of Quality Assurance Supervisor, and was promoted to Senior Quality Assurance Supervisor in or around March 2019. His primary work location was the Nexford manufacturing facility at 2700 Industrial Parkway, Elgin, Illinois 60123 (the "Elgin Facility"). At the time of his termination, Maciejewski's annual salary was $78,400.

The Complaint. The complaint filed on March 15, 2022, asserts three counts against Nexford:

Count I: Retaliatory Discharge under Illinois common law, alleging that Maciejewski's termination was motivated by his protected activity of reporting workplace safety concerns and contravened a clearly mandated public policy favoring employee safety reporting.

Count II: Retaliation in violation of Section 11(c) of the Occupational Safety and Health Act of 1970, 29 U.S.C. § 660(c), alleging that Nexford discharged Maciejewski because he filed a complaint with the Occupational Safety and Health Administration ("OSHA") and exercised rights protected under the Act.

Count III: Violation of the Illinois Whistleblower Act, 740 ILCS 174/1 et seq., alleging that Nexford retaliated against Maciejewski for disclosing information regarding suspected violations of health and safety laws and regulations to supervisory personnel and to a government regulatory body.

Plaintiff's Key Allegations. Maciejewski alleges that beginning on or about April 5, 2021, he made internal safety reports to his direct supervisor, Frank Bosch, Plant Manager of the Elgin Facility, regarding what he believed to be unsafe chemical storage conditions in Building C of the Elgin Facility. Specifically, Maciejewski contends that certain Class 3 flammable liquids were being stored in quantities exceeding the rated capacity of designated safety cabinets and in a manner inconsistent with applicable OSHA and NFPA regulations.

Maciejewski further alleges that on or about April 19, 2021, he submitted a follow-up written report to Nexford's Environmental Health & Safety ("EHS") Department, then directed by Liam Gallagher. According to the Plaintiff, the Company's internal response was inadequate and failed to address the conditions he had identified.

On or about June 8, 2021, Maciejewski alleges he filed OSHA Complaint No. 1734892 with the OSHA Area Office located at 701 Lee Street, Suite 950, Des Plaines, Illinois 60016. The Plaintiff contends that his subsequent termination on September 24, 2021, was in direct retaliation for his internal safety reports and the filing of the OSHA complaint.

Nexford's Position. Nexford maintains that Maciejewski was terminated for legitimate, non-retaliatory reasons — specifically, for documented, repeated violations of the Company's attendance and tardiness policy as set forth in Nexford Employee Handbook § 4.3. Nexford's position is that Maciejewski was subjected to progressive discipline consistent with Company policy, including:

• A first written warning issued on May 24, 2021, documenting four instances of arriving more than fifteen minutes late to his assigned shift within a thirty-day period;

• A final written warning issued on August 2, 2021, documenting three additional unexcused tardiness incidents occurring between June 1 and July 31, 2021; and

• A subsequent unexcused absence on September 20, 2021, which, under the progressive discipline framework, resulted in his termination on September 24, 2021.

Nexford further maintains that its EHS Department conducted a review of the Building C chemical storage conditions following receipt of Maciejewski's internal reports and concluded, on or about May 3, 2021, that the facility was in compliance with applicable regulations, though minor labeling improvements were recommended and implemented. Moreover, the OSHA investigation initiated in response to Complaint No. 1734892, including an on-site inspection on July 12, 2021, was closed by OSHA on August 18, 2021, with no citations or findings of violation issued against Nexford.

Opposing Counsel. Plaintiff is represented by Gerald P. Hess of Hess & Loughlin, P.C., located at 3412 Harlem Avenue, Suite 205, Berwyn, Illinois 60402.

III. Scope of the Litigation Hold — Categories of Documents and Information to Be Preserved

Set forth below are the specific categories of documents, ESI, and tangible things that must be preserved under this litigation hold. These categories are intended to be illustrative and not exhaustive. If you are uncertain whether a particular document or category of information falls within the scope of this hold, you should err on the side of preservation and contact Calderwood & Harkness for guidance before taking any action that could result in the alteration or destruction of potentially relevant materials.

A. Employment Records of Darren K. Maciejewski

All records and documents in Nexford's possession, custody, or control relating to the employment of Darren K. Maciejewski must be preserved in their entirety. This includes, without limitation:

1. Maciejewski's complete personnel file, including his employment application, résumé or curriculum vitae, offer letter, onboarding documents, I-9 verification, background check results, and any amendments, addenda, or modifications to his terms of employment at any time during his tenure.

2. All records reflecting Maciejewski's hiring date of June 12, 2017, his promotion to Senior Quality Assurance Supervisor in or around March 2019, and all salary adjustments throughout his employment, including but not limited to his starting salary of $64,000, the increase to $72,500, and his final salary of $78,400 effective January 2021. This encompasses any salary review forms, compensation approval memoranda, and related correspondence.

3. All performance evaluations, annual reviews, mid-year reviews, performance improvement plans, and any related supervisory notes, comments, or documentation prepared by or provided to any supervisor, manager, or HR representative regarding Maciejewski's job performance during his entire period of employment.

4. Benefits enrollment records, including health insurance, dental, vision, retirement plan (401(k) or similar), life insurance, disability, and any other benefit elections or changes, as well as any documents maintained or generated by Fulcrum Benefits Consulting, Inc. or any other third-party benefits administrator relating to Maciejewski's benefits enrollment, claims, or coverage.

5. All records reflecting any complaints made by or against Maciejewski during his employment, including but not limited to formal grievances, informal complaints, requests for investigation, the results of any internal investigations, HR inquiry files, and any related correspondence or documentation.

B. Attendance and Discipline Records

All records and documents relating to Maciejewski's attendance, timekeeping, and disciplinary history must be preserved. This category includes, without limitation:

1. All attendance and timekeeping records for Maciejewski, including electronic badge-in and badge-out data, time-clock records, shift schedules, overtime logs, leave requests, approved and unapproved absences, and any attendance tracking spreadsheets or reports, for the entirety of his employment from June 12, 2017, through September 24, 2021. This preservation obligation applies with particular emphasis to the period from January 1, 2021, through September 24, 2021.

2. The first written warning issued to Maciejewski on May 24, 2021, documenting four instances of arriving more than fifteen minutes late to his assigned shift within a thirty-day period, including any supporting documentation, attendance logs, supervisor notes, and HR review forms related to that warning.

3. The final written warning issued to Maciejewski on August 2, 2021, documenting three additional unexcused tardiness incidents between June 1 and July 31, 2021, together with all supporting attendance records, supervisor notes, and HR review or approval documentation.

4. All documentation relating to Maciejewski's unexcused absence on September 20, 2021, including any call-in logs, supervisor reports, or contemporaneous notes.

5. All records of the termination meeting held on September 24, 2021, including any meeting notes, memoranda, pre-meeting planning documents, sign-off forms, termination checklists, or other documentation prepared by or involving Frank Bosch (Plant Manager) and Catherine Donnelly (Vice President, Human Resources), as well as any other individuals who participated in or were consulted regarding the termination decision.

6. Any separation documentation, including separation agreements (whether signed or unsigned), release forms, exit interview records, final pay calculations, vacation or PTO payout records, COBRA notifications, and correspondence regarding post-employment matters.

7. The Nexford Employee Handbook in all versions in effect at any time during Maciejewski's employment, with particular attention to Section 4.3 (attendance and tardiness policy) and any amendments, revisions, supplements, or interpretive memoranda issued in connection therewith during 2021.

8. All progressive discipline policies, procedures, guideline documents, training materials provided to supervisors regarding progressive discipline, and any internal memoranda or directives regarding the application or interpretation of those policies.

C. Safety Reports, OSHA Complaint, and Building C Chemical Storage

All records and documents relating to safety concerns raised by Maciejewski, the OSHA complaint and investigation, and chemical storage conditions in Building C of the Elgin Facility must be preserved. This category includes, without limitation:

1. All internal reports, memoranda, emails, and communications relating to Maciejewski's safety complaints regarding chemical storage conditions in Building C, including but not limited to:

(a) The report submitted by Maciejewski to Frank Bosch on or about April 5, 2021, whether in written, electronic, or any other format, together with any responsive communications from Bosch or any other Nexford personnel;

(b) The follow-up report submitted by Maciejewski to the EHS Department on or about April 19, 2021, together with any responsive communications from Liam Gallagher, Director of EHS, or any other member of the EHS Department;

(c) The EHS Department's response dated on or about May 3, 2021, concluding that Building C chemical storage was compliant with applicable regulations but recommending minor labeling improvements, together with any underlying investigation files, inspection checklists, photographs, or supporting documentation used in reaching that conclusion; and

(d) Any other internal communications, reports, or memoranda discussing, referencing, or responsive to Maciejewski's safety concerns at any time.

2. All documents, reports, and correspondence relating to OSHA Complaint No. 1734892, filed by Maciejewski on or about June 8, 2021, with the OSHA Area Office at 701 Lee Street, Suite 950, Des Plaines, Illinois 60016, including but not limited to:

(a) Nexford's receipt of the OSHA notification letter or correspondence regarding the complaint, received on or about June 14, 2021;

(b) All documents related to Nexford's preparation for and participation in the OSHA inspection conducted on or about July 12, 2021, including internal communications, document collection efforts, facility preparation activities, and any correspondence with OSHA compliance officers;

(c) All records reflecting OSHA's closure of the complaint on or about August 18, 2021, with no citations or findings of violation, including any closing letters, informal settlement communications, or follow-up correspondence; and

(d) Any internal communications among Nexford management, EHS personnel, legal department, or other employees regarding the OSHA complaint, the inspection, and the ultimate disposition of the complaint.

3. All records relating to chemical storage in Building C of the Elgin Facility, including inventories of Class 3 flammable liquids (specifically including but not limited to acetone and isopropanol), safety cabinet capacity logs, safety data sheets ("SDS") for all chemicals stored in Building C, inspection records, and maintenance logs for ventilation and fire suppression systems.

4. All EHS audit reports, safety inspection records, environmental compliance documentation, and internal or third-party safety assessments for the Elgin Facility, with particular attention to Building C, from January 1, 2021, through December 31, 2021.

D. Communications Concerning Maciejewski

All communications to, from, or concerning Darren K. Maciejewski among any Nexford employees must be preserved. This encompasses all forms of communication, including but not limited to emails, text messages, instant messages (including messages on platforms such as Northgate Data Systems, Meridian Solutions, or similar collaboration tools), voicemails, written memoranda, handwritten notes, and any other form of written or electronic correspondence.

This preservation obligation applies to communications involving, without limitation, the following individuals:

• Frank Bosch, Plant Manager, Elgin Facility

• Catherine "Cat" Donnelly, Vice President, Human Resources

• Liam Gallagher, Director, Environmental Health & Safety

• Tara Svendsen, General Counsel

• Richard Yoon, Chief Executive Officer

• Any other supervisors, managers, HR personnel, or co-workers at the Elgin Facility or at any other Nexford location who communicated about Maciejewski or subjects related to his safety reports, discipline, or termination

This includes communications conducted on all platforms and systems used for Nexford business, whether Company-owned or personal. To the extent that any Nexford employee used a personal email account, personal mobile device, or personal messaging application for communications relating to Maciejewski or the subjects at issue in this litigation, those communications are equally subject to preservation.

The relevant date range for this category is January 1, 2021, through the present date (April 1, 2022), and this preservation obligation will continue on a rolling basis for the duration of the litigation hold.

E. Policies, Procedures, and Comparative Records

The following policy and comparative documents must be preserved:

1. All versions of the Nexford Employee Handbook in effect at any time from 2017 through the present, including all revisions, supplements, and amendments.

2. All anti-retaliation policies, whistleblower policies, and any policies or procedures addressing employee reports of safety concerns, whether maintained separately or incorporated into the Employee Handbook.

3. Documents reflecting the application of progressive discipline under Employee Handbook § 4.3 or any predecessor provision to employees other than Maciejewski — specifically, records relating to employees in the Quality Assurance department or at the Elgin Facility generally during the period from January 1, 2019, through December 31, 2022. Note: The preservation of these comparative records is necessary to fulfill Nexford's preservation obligations in this litigation. The question of the scope of their ultimate production in discovery is a separate legal matter that will be addressed as discovery progresses; however, the records must be preserved now to ensure their availability.

4. Organizational charts for the Elgin Facility reflecting the reporting structure for Quality Assurance and EHS personnel, including any versions in effect at any time from 2019 through the present.

F. Electronic and Digital Information

In addition to the specific categories set forth above, all electronically stored information ("ESI") on any Nexford system or device that may contain materials responsive to this hold must be preserved. This includes, without limitation:

1. Data stored on Nexford's corporate servers, email systems (including email archives and journaling databases), backup tapes and backup media, shared network drives, cloud storage platforms (including but not limited to Sundial Systems, Cobalt Ridge Systems, Crestline Software, or similar services), and individual workstation hard drives.

2. Any company-issued devices previously assigned to Maciejewski, including laptops, desktop computers, mobile phones, and tablets, and any forensic images, data copies, or backups that were created from those devices at or after Maciejewski's separation from the Company. These devices must be preserved in their current state and must not be wiped, reformatted, reassigned, or otherwise altered.

3. Any data from Nexford's Human Resources Information System ("HRIS"), timekeeping system, payroll system, or any other enterprise application containing records relating to Maciejewski or to the subjects at issue in this litigation.

4. All metadata associated with electronic documents falling within the scope of this hold must be preserved intact. Documents must not be converted, reformatted, printed to paper or PDF, or otherwise processed in any manner that would alter or destroy native metadata, including but not limited to file creation dates, modification dates, author information, and access history.

IV. Identified Key Custodians

The following individuals are designated as key custodians whose files, documents, and ESI must be preserved in connection with this litigation hold:

Additional custodians may be identified as this litigation progresses and as additional facts become known through investigation and discovery. Calderwood & Harkness will provide supplemental instructions identifying any additional custodians and the scope of preservation applicable to their files.

Each of the custodians identified above should be individually notified of this litigation hold and should be provided with a copy of this notice. Each custodian should acknowledge receipt of this notice in writing. A suggested Custodian Acknowledgment Form is attached to this letter or will follow under separate cover. Completed acknowledgment forms should be returned to Calderwood & Harkness at the address and contact information provided in Section IX below.

It is critical that each custodian understand that they bear personal responsibility for preserving all documents and ESI within their possession, custody, or control that fall within the scope of this hold, and that they must take affirmative steps to identify and secure such materials.

V. Geographic and Facility Scope

This litigation hold applies to documents and ESI located at all Nexford locations, including but not limited to:

• Elgin Facility: 2700 Industrial Parkway, Elgin, Illinois 60123 — This is the primary locus of the events giving rise to the Plaintiff's claims, including Maciejewski's employment, his safety reports, the Building C chemical storage conditions, and his disciplinary history and termination.

• Corporate Headquarters: 500 Commerce Drive, Suite 400, Schaumburg, Illinois 60173 — Home to the General Counsel's office, Human Resources, and centralized corporate functions.

• Rockford Facility: 1180 Auburn Road, Rockford, Illinois 61101 — To the extent that any relevant records, communications, or comparator discipline records are maintained at this location.

• Joliet Facility: 4455 Larkin Avenue, Joliet, Illinois 60435 — To the extent that any relevant records, communications, or comparator discipline records are maintained at this location.

The hold applies equally to centrally maintained records (including those held by HR, the legal department, EHS, and IT at the corporate level) and to locally maintained records at the Elgin plant or at any other Nexford facility where relevant materials may be stored.

VI. Obligations and Instructions

A. Immediate Suspension of Routine Destruction

Effective immediately upon receipt of this notice, all routine document destruction, recycling, shredding, and electronic deletion or overwriting schedules must be suspended with respect to any materials falling within the categories described in Section III above. This directive includes but is not limited to:

• Suspension of any auto-delete policies for email accounts, including policies that automatically delete emails after a specified retention period;

• Suspension of backup tape rotation schedules that would result in the overwriting or destruction of backup media containing potentially responsive data;

• Suspension of any scheduled electronic data purges, whether automated or manual, affecting servers, databases, shared drives, or individual workstations;

• Suspension of any physical document destruction schedules, including routine shredding, recycling, or off-site disposal of paper records.

Nexford's IT department should be notified immediately and should implement technical measures necessary to prevent the deletion, overwriting, or alteration of potentially responsive electronic data across all systems and platforms. Calderwood & Harkness is available to consult with Nexford's IT personnel regarding the specific technical steps that should be taken.

B. Affirmative Preservation Steps

Beyond the suspension of routine destruction, each key custodian and each department head or manager who receives this notice should take the following affirmative steps:

1. Review and Segregation. Key custodians should promptly review their physical and electronic files and identify any materials falling within the scope of this hold. Physical documents should be collected and placed in a secure, clearly identified location (e.g., a locked file cabinet or designated storage area) and should not be removed, altered, annotated, or destroyed. Electronic documents should be identified and flagged, but should not be moved, renamed, altered, or deleted.

2. Physical Security. All physical documents subject to this hold should be stored in a manner that protects them from inadvertent loss, damage, or destruction. Access to the storage location should be limited to authorized personnel.

3. Electronic Preservation. Where practicable, forensic copies or images should be made of relevant electronic data sources, including hard drives, email archives, and shared drive folders. Calderwood & Harkness can arrange for a third-party forensic vendor to assist with imaging if necessary. Until forensic copies are completed, the original data sources must remain unaltered.

4. Maciejewski's Devices. Any company-issued devices previously assigned to Darren K. Maciejewski that remain in Nexford's possession — including laptops, desktop computers, mobile phones, and tablets — must be preserved in their current state. These devices must not be wiped, reformatted, repurposed, reassigned to another employee, or otherwise altered. If any such devices are currently in storage, they should be identified, secured, and inventoried.

C. Third-Party Custodians

To the extent that documents or information within the scope of this litigation hold are maintained by third-party service providers, Nexford should issue parallel preservation instructions to those providers. Relevant third parties include, but may not be limited to:

• Fulcrum Benefits Consulting, Inc. — third-party benefits administrator that may maintain records relating to Maciejewski's benefits enrollment, claims, and coverage;

• Grantham & Associates, LLP — auditing firm that may possess audit records, workpapers, or internal control assessments referencing personnel matters or EHS compliance at the Elgin Facility;

• IT hosting or cloud service providers — any third-party providers that host, store, or manage Nexford's electronic data, email systems, or collaboration platforms.

Calderwood & Harkness can assist in drafting appropriate third-party preservation letters to ensure that these providers are placed on notice of their obligations. Please advise us of any additional third-party service providers who may maintain relevant records so that we can coordinate preservation efforts.

D. Ongoing Obligation

This litigation hold remains in effect until Calderwood & Harkness provides written notice that the hold has been released. The hold may be modified, expanded, or narrowed as the litigation develops and as additional information becomes available. Any modifications will be communicated in writing.

The preservation obligation is a continuing one. As new documents are created and new communications occur during the pendency of this litigation, those materials must also be preserved to the extent they fall within the categories described herein. Key custodians and department heads should remain mindful of the hold and should ensure that newly created materials are retained consistent with its terms.

Any questions about whether a particular document, communication, or category of information falls within the scope of this hold should be resolved in favor of preservation. If there is any doubt, preserve the material and direct the question to:

• Nadia Petrov, Lead Associate, Calderwood & Harkness LLP

• Bernard Crawford, Partner, Calderwood & Harkness LLP

Contact information is provided in Section IX below.

VII. Coordination with EPLI Carrier

We note for the record that Nexford has notified its Employment Practices Liability Insurance ("EPLI") carrier, Verdant Mutual Insurance Company, of the Maciejewski claim. The applicable policy is EPLI Policy No. EPLI-VM-2021-04782, which provides a per-occurrence limit of $2,000,000 and an aggregate limit of $5,000,000, subject to a self-insured retention of $50,000.

Verdant Mutual has acknowledged coverage of the claim subject to a reservation of rights letter. The assigned claims adjuster is Brianna Choi. Verdant Mutual has approved Calderwood & Harkness LLP as panel counsel for this matter.

It is important to emphasize that Nexford's preservation obligations under this litigation hold exist independently of any insurance-related considerations. Compliance with this hold is the Company's obligation regardless of coverage determinations, and the existence of the reservation of rights does not alter or diminish the scope of preservation required. All steps outlined in this notice must be implemented irrespective of the status of insurance coverage.

VIII. Consequences of Non-Compliance

We wish to underscore the seriousness of the preservation obligations set forth in this notice. The failure to preserve relevant evidence — whether through intentional destruction, negligent loss, or failure to implement adequate preservation measures — can result in severe consequences, including:

• Adverse inference instructions permitting the jury to presume that destroyed or lost evidence was unfavorable to Nexford;

• Monetary sanctions imposed against the Company and, potentially, against individual officers or employees responsible for the failure;

• Evidentiary preclusion barring Nexford from introducing certain evidence or arguments at trial;

• Issue preclusion or default judgment in extreme cases of willful spoliation; and

• Disciplinary referrals and potential professional responsibility consequences for counsel.

Courts in Illinois, as well as federal courts, have broad discretion to impose sanctions for the spoliation of evidence and have demonstrated an increasing willingness to do so in cases involving the destruction of ESI. The risk of sanctions is not limited to intentional destruction; courts have imposed sanctions where a party merely failed to implement reasonable preservation measures after a hold was triggered.

Each custodian and each department head who receives this notice bears personal responsibility for compliance within their respective area of control. This means that each recipient must take the steps described herein, ensure that individuals under their supervision are aware of the hold, and confirm that appropriate preservation measures have been implemented.

IX. Acknowledgment and Contact Information

We respectfully request that Ms. Svendsen and Ms. Donnelly each acknowledge receipt of this litigation hold notice and confirm in writing that appropriate steps have been taken — or are being taken — to implement the hold across all Nexford facilities, departments, and systems.

In addition, we request that each key custodian identified in Section IV (Frank Bosch, Catherine Donnelly, Liam Gallagher, and Tara Svendsen) complete and return a written acknowledgment confirming that they have received, read, and understand the terms and obligations of this litigation hold. A Custodian Acknowledgment Form is attached to this letter or will be provided under separate cover. Completed acknowledgment forms should be returned promptly to:

Nadia Petrov Calderwood & Harkness LLP 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606

Email: npetrov@calderwoodharkness.com

Any questions regarding the scope of this litigation hold, the identification of responsive materials, or specific preservation issues should be directed to:

Bernard Crawford, Partner Calderwood & Harkness LLP Telephone: (312) 555-7812

Email: bcrawford@calderwoodharkness.com

Nadia Petrov, Lead Associate Calderwood & Harkness LLP Telephone: (312) 555-7834

Email: npetrov@calderwoodharkness.com

We are available to meet with you, your IT department, and your records management personnel to provide further guidance on the implementation of this hold. Given the urgency of the preservation obligations, we recommend scheduling such a meeting at the earliest available opportunity, and no later than April 8, 2022.

Thank you for your prompt attention to this matter. We recognize that implementing a litigation hold requires significant effort across multiple departments and facilities, and we appreciate your diligence in ensuring that Nexford meets its preservation obligations fully and in a timely manner.

Very truly yours,

CALDERWOOD & HARKNESS LLP

By: ________

Bernard Crawford Partner 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606 Telephone: (312) 555-7812

Email: bcrawford@calderwoodharkness.com

cc: Bernard Crawford, Calderwood & Harkness LLP (file copy) cc: Renata Vasquez, Calderwood & Harkness LLP cc: Nadia Petrov, Calderwood & Harkness LLP cc: James Underwood, Calderwood & Harkness LLP

Enclosure: Custodian Acknowledgment Form (attached hereto or to follow under separate cover)

CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT This document and the information contained herein are protected by the attorney-client privilege and the work product doctrine. This communication is intended solely for the use of the addressees and other authorized recipients. Any unauthorized review, use, disclosure, or distribution is prohibited. If you have received this communication in error, please notify the sender immediately and destroy all copies of the original.

No.	Name	Title	Facility
1	Frank Bosch	Plant Manager	Elgin Facility
2	Catherine "Cat" Donnelly	Vice President, Human Resources	Corporate Headquarters
3	Liam Gallagher	Director, Environmental Health & Safety	Elgin Facility
4	Tara Svendsen	General Counsel	Corporate Headquarters

CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT
CALDERWOOD & HARKNESS LLP Attorneys at Law 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606 Telephone: (312) 555-7800 Facsimile: (312) 555-7801
April 1, 2022
VIA HAND DELIVERY AND ELECTRONIC MAIL
Tara Svendsen, Esq. General Counsel Nexford Industrial Holdings Inc. 500 Commerce Drive, Suite 400 Schaumburg, Illinois 60173
Catherine "Cat" Donnelly Vice President, Human Resources Nexford Industrial Holdings Inc. 500 Commerce Drive, Suite 400 Schaumburg, Illinois 60173
Re: LITIGATION HOLD NOTICE — Preservation of Documents and Electronically Stored Information
Matter: Darren K. Maciejewski v. Nexford Industrial Holdings Inc., Case No. 2022-L-002847, Circuit Court of Cook County, Illinois, County Department, Law Division
CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT
Dear Ms. Svendsen and Ms. Donnelly:
I. Introduction and Purpose of the Hold
Calderwood & Harkness LLP represents Nexford Industrial Holdings Inc. ("Nexford" or the "Company") in the above-referenced litigation. I am writing in my capacity as the responsible partner on this engagement, on behalf of the Calderwood & Harkness engagement team, to issue this formal litigation hold directive.
As you are aware, a complaint was filed on March 15, 2022, in the Circuit Court of Cook County, Illinois, County Department, Law Division, by Darren K. Maciejewski ("Plaintiff" or "Maciejewski"), a former Senior Quality Assurance Supervisor at Nexford's manufacturing facility located in Elgin, Illinois. The complaint alleges that Mr. Maciejewski was terminated in retaliation for engaging in protected activity, specifically the reporting of safety concerns regarding chemical storage conditions at the Elgin plant. Service of process was effectuated on March 22, 2022, upon CT Agents Inc., Nexford's registered agent for service of process, at 208 South LaSalle Street, Suite 814, Springfield, Illinois 62701. Calderwood & Harkness filed its appearance on behalf of Nexford on April 4, 2022.
This letter constitutes a formal litigation hold directive requiring the immediate preservation of all documents, electronically stored information ("ESI"), and tangible things potentially relevant to the claims and defenses in this matter. The hold is directed to all officers, employees, departments, and agents of Nexford who may possess, control, or have access to such materials.
As a party to pending litigation, Nexford has clear and enforceable legal obligations to preserve all evidence that is relevant or potentially relevant to the claims asserted by the Plaintiff, as well as to any defenses that the Company may assert. These preservation obligations arise under both Illinois law and applicable federal law, and attach once litigation is either reasonably anticipated or actually pending. The failure to comply with these obligations may result in court-imposed sanctions, including but not limited to adverse inference instructions to the jury, monetary penalties, evidentiary preclusion, or other remedial measures that could materially and adversely affect the outcome of this case.
This litigation hold is effective immediately upon your receipt of this letter and supersedes any document retention or destruction policies, schedules, or practices that might otherwise apply to the categories of materials described herein. This includes, without limitation, any routine purge schedules, auto-delete configurations for email or electronic files, backup tape rotation protocols, or periodic disposal of physical records. No documents or ESI falling within the scope of this hold may be destroyed, deleted, altered, overwritten, or discarded for any reason unless and until Calderwood & Harkness provides written notice that the hold has been released.
We appreciate the seriousness with which Nexford's leadership has already approached this matter and request your immediate cooperation in disseminating and enforcing the instructions set forth below.
II. Summary of the Litigation
In order to ensure that all relevant categories of documents and information can be identified and preserved, we provide the following summary of the key facts and allegations at issue in this litigation.
The Plaintiff. Darren K. Maciejewski, age 47, was employed by Nexford from June 12, 2017, through his termination on September 24, 2021. During his tenure, Maciejewski held the position of Quality Assurance Supervisor, and was promoted to Senior Quality Assurance Supervisor in or around March 2019. His primary work location was the Nexford manufacturing facility at 2700 Industrial Parkway, Elgin, Illinois 60123 (the "Elgin Facility"). At the time of his termination, Maciejewski's annual salary was $78,400.
The Complaint. The complaint filed on March 15, 2022, asserts three counts against Nexford:
Count I: Retaliatory Discharge under Illinois common law, alleging that Maciejewski's termination was motivated by his protected activity of reporting workplace safety concerns and contravened a clearly mandated public policy favoring employee safety reporting.
Count II: Retaliation in violation of Section 11(c) of the Occupational Safety and Health Act of 1970, 29 U.S.C. § 660(c), alleging that Nexford discharged Maciejewski because he filed a complaint with the Occupational Safety and Health Administration ("OSHA") and exercised rights protected under the Act.
Count III: Violation of the Illinois Whistleblower Act, 740 ILCS 174/1 et seq., alleging that Nexford retaliated against Maciejewski for disclosing information regarding suspected violations of health and safety laws and regulations to supervisory personnel and to a government regulatory body.
Plaintiff's Key Allegations. Maciejewski alleges that beginning on or about April 5, 2021, he made internal safety reports to his direct supervisor, Frank Bosch, Plant Manager of the Elgin Facility, regarding what he believed to be unsafe chemical storage conditions in Building C of the Elgin Facility. Specifically, Maciejewski contends that certain Class 3 flammable liquids were being stored in quantities exceeding the rated capacity of designated safety cabinets and in a manner inconsistent with applicable OSHA and NFPA regulations.
Maciejewski further alleges that on or about April 19, 2021, he submitted a follow-up written report to Nexford's Environmental Health & Safety ("EHS") Department, then directed by Liam Gallagher. According to the Plaintiff, the Company's internal response was inadequate and failed to address the conditions he had identified.
On or about June 8, 2021, Maciejewski alleges he filed OSHA Complaint No. 1734892 with the OSHA Area Office located at 701 Lee Street, Suite 950, Des Plaines, Illinois 60016. The Plaintiff contends that his subsequent termination on September 24, 2021, was in direct retaliation for his internal safety reports and the filing of the OSHA complaint.
Nexford's Position. Nexford maintains that Maciejewski was terminated for legitimate, non-retaliatory reasons — specifically, for documented, repeated violations of the Company's attendance and tardiness policy as set forth in Nexford Employee Handbook § 4.3. Nexford's position is that Maciejewski was subjected to progressive discipline consistent with Company policy, including:
• A first written warning issued on May 24, 2021, documenting four instances of arriving more than fifteen minutes late to his assigned shift within a thirty-day period;
• A final written warning issued on August 2, 2021, documenting three additional unexcused tardiness incidents occurring between June 1 and July 31, 2021; and
• A subsequent unexcused absence on September 20, 2021, which, under the progressive discipline framework, resulted in his termination on September 24, 2021.
Nexford further maintains that its EHS Department conducted a review of the Building C chemical storage conditions following receipt of Maciejewski's internal reports and concluded, on or about May 3, 2021, that the facility was in compliance with applicable regulations, though minor labeling improvements were recommended and implemented. Moreover, the OSHA investigation initiated in response to Complaint No. 1734892, including an on-site inspection on July 12, 2021, was closed by OSHA on August 18, 2021, with no citations or findings of violation issued against Nexford.
Opposing Counsel. Plaintiff is represented by Gerald P. Hess of Hess & Loughlin, P.C., located at 3412 Harlem Avenue, Suite 205, Berwyn, Illinois 60402.
III. Scope of the Litigation Hold — Categories of Documents and Information to Be Preserved
Set forth below are the specific categories of documents, ESI, and tangible things that must be preserved under this litigation hold. These categories are intended to be illustrative and not exhaustive. If you are uncertain whether a particular document or category of information falls within the scope of this hold, you should err on the side of preservation and contact Calderwood & Harkness for guidance before taking any action that could result in the alteration or destruction of potentially relevant materials.
A. Employment Records of Darren K. Maciejewski
All records and documents in Nexford's possession, custody, or control relating to the employment of Darren K. Maciejewski must be preserved in their entirety. This includes, without limitation:
1. Maciejewski's complete personnel file, including his employment application, résumé or curriculum vitae, offer letter, onboarding documents, I-9 verification, background check results, and any amendments, addenda, or modifications to his terms of employment at any time during his tenure.
2. All records reflecting Maciejewski's hiring date of June 12, 2017, his promotion to Senior Quality Assurance Supervisor in or around March 2019, and all salary adjustments throughout his employment, including but not limited to his starting salary of $64,000, the increase to $72,500, and his final salary of $78,400 effective January 2021. This encompasses any salary review forms, compensation approval memoranda, and related correspondence.
3. All performance evaluations, annual reviews, mid-year reviews, performance improvement plans, and any related supervisory notes, comments, or documentation prepared by or provided to any supervisor, manager, or HR representative regarding Maciejewski's job performance during his entire period of employment.
4. Benefits enrollment records, including health insurance, dental, vision, retirement plan (401(k) or similar), life insurance, disability, and any other benefit elections or changes, as well as any documents maintained or generated by Fulcrum Benefits Consulting, Inc. or any other third-party benefits administrator relating to Maciejewski's benefits enrollment, claims, or coverage.
5. All records reflecting any complaints made by or against Maciejewski during his employment, including but not limited to formal grievances, informal complaints, requests for investigation, the results of any internal investigations, HR inquiry files, and any related correspondence or documentation.
B. Attendance and Discipline Records
All records and documents relating to Maciejewski's attendance, timekeeping, and disciplinary history must be preserved. This category includes, without limitation:
1. All attendance and timekeeping records for Maciejewski, including electronic badge-in and badge-out data, time-clock records, shift schedules, overtime logs, leave requests, approved and unapproved absences, and any attendance tracking spreadsheets or reports, for the entirety of his employment from June 12, 2017, through September 24, 2021. This preservation obligation applies with particular emphasis to the period from January 1, 2021, through September 24, 2021.
2. The first written warning issued to Maciejewski on May 24, 2021, documenting four instances of arriving more than fifteen minutes late to his assigned shift within a thirty-day period, including any supporting documentation, attendance logs, supervisor notes, and HR review forms related to that warning.
3. The final written warning issued to Maciejewski on August 2, 2021, documenting three additional unexcused tardiness incidents between June 1 and July 31, 2021, together with all supporting attendance records, supervisor notes, and HR review or approval documentation.
4. All documentation relating to Maciejewski's unexcused absence on September 20, 2021, including any call-in logs, supervisor reports, or contemporaneous notes.
5. All records of the termination meeting held on September 24, 2021, including any meeting notes, memoranda, pre-meeting planning documents, sign-off forms, termination checklists, or other documentation prepared by or involving Frank Bosch (Plant Manager) and Catherine Donnelly (Vice President, Human Resources), as well as any other individuals who participated in or were consulted regarding the termination decision.
6. Any separation documentation, including separation agreements (whether signed or unsigned), release forms, exit interview records, final pay calculations, vacation or PTO payout records, COBRA notifications, and correspondence regarding post-employment matters.
7. The Nexford Employee Handbook in all versions in effect at any time during Maciejewski's employment, with particular attention to Section 4.3 (attendance and tardiness policy) and any amendments, revisions, supplements, or interpretive memoranda issued in connection therewith during 2021.
8. All progressive discipline policies, procedures, guideline documents, training materials provided to supervisors regarding progressive discipline, and any internal memoranda or directives regarding the application or interpretation of those policies.
C. Safety Reports, OSHA Complaint, and Building C Chemical Storage
All records and documents relating to safety concerns raised by Maciejewski, the OSHA complaint and investigation, and chemical storage conditions in Building C of the Elgin Facility must be preserved. This category includes, without limitation:
1. All internal reports, memoranda, emails, and communications relating to Maciejewski's safety complaints regarding chemical storage conditions in Building C, including but not limited to:
(a) The report submitted by Maciejewski to Frank Bosch on or about April 5, 2021, whether in written, electronic, or any other format, together with any responsive communications from Bosch or any other Nexford personnel;
(b) The follow-up report submitted by Maciejewski to the EHS Department on or about April 19, 2021, together with any responsive communications from Liam Gallagher, Director of EHS, or any other member of the EHS Department;
(c) The EHS Department's response dated on or about May 3, 2021, concluding that Building C chemical storage was compliant with applicable regulations but recommending minor labeling improvements, together with any underlying investigation files, inspection checklists, photographs, or supporting documentation used in reaching that conclusion; and
(d) Any other internal communications, reports, or memoranda discussing, referencing, or responsive to Maciejewski's safety concerns at any time.
2. All documents, reports, and correspondence relating to OSHA Complaint No. 1734892, filed by Maciejewski on or about June 8, 2021, with the OSHA Area Office at 701 Lee Street, Suite 950, Des Plaines, Illinois 60016, including but not limited to:
(a) Nexford's receipt of the OSHA notification letter or correspondence regarding the complaint, received on or about June 14, 2021;
(b) All documents related to Nexford's preparation for and participation in the OSHA inspection conducted on or about July 12, 2021, including internal communications, document collection efforts, facility preparation activities, and any correspondence with OSHA compliance officers;
(c) All records reflecting OSHA's closure of the complaint on or about August 18, 2021, with no citations or findings of violation, including any closing letters, informal settlement communications, or follow-up correspondence; and
(d) Any internal communications among Nexford management, EHS personnel, legal department, or other employees regarding the OSHA complaint, the inspection, and the ultimate disposition of the complaint.
3. All records relating to chemical storage in Building C of the Elgin Facility, including inventories of Class 3 flammable liquids (specifically including but not limited to acetone and isopropanol), safety cabinet capacity logs, safety data sheets ("SDS") for all chemicals stored in Building C, inspection records, and maintenance logs for ventilation and fire suppression systems.
4. All EHS audit reports, safety inspection records, environmental compliance documentation, and internal or third-party safety assessments for the Elgin Facility, with particular attention to Building C, from January 1, 2021, through December 31, 2021.
D. Communications Concerning Maciejewski
All communications to, from, or concerning Darren K. Maciejewski among any Nexford employees must be preserved. This encompasses all forms of communication, including but not limited to emails, text messages, instant messages (including messages on platforms such as Northgate Data Systems, Meridian Solutions, or similar collaboration tools), voicemails, written memoranda, handwritten notes, and any other form of written or electronic correspondence.
This preservation obligation applies to communications involving, without limitation, the following individuals:
• Frank Bosch, Plant Manager, Elgin Facility
• Catherine "Cat" Donnelly, Vice President, Human Resources
• Liam Gallagher, Director, Environmental Health & Safety
• Tara Svendsen, General Counsel
• Richard Yoon, Chief Executive Officer
• Any other supervisors, managers, HR personnel, or co-workers at the Elgin Facility or at any other Nexford location who communicated about Maciejewski or subjects related to his safety reports, discipline, or termination
This includes communications conducted on all platforms and systems used for Nexford business, whether Company-owned or personal. To the extent that any Nexford employee used a personal email account, personal mobile device, or personal messaging application for communications relating to Maciejewski or the subjects at issue in this litigation, those communications are equally subject to preservation.
The relevant date range for this category is January 1, 2021, through the present date (April 1, 2022), and this preservation obligation will continue on a rolling basis for the duration of the litigation hold.
E. Policies, Procedures, and Comparative Records
The following policy and comparative documents must be preserved:
1. All versions of the Nexford Employee Handbook in effect at any time from 2017 through the present, including all revisions, supplements, and amendments.
2. All anti-retaliation policies, whistleblower policies, and any policies or procedures addressing employee reports of safety concerns, whether maintained separately or incorporated into the Employee Handbook.
3. Documents reflecting the application of progressive discipline under Employee Handbook § 4.3 or any predecessor provision to employees other than Maciejewski — specifically, records relating to employees in the Quality Assurance department or at the Elgin Facility generally during the period from January 1, 2019, through December 31, 2022. Note: The preservation of these comparative records is necessary to fulfill Nexford's preservation obligations in this litigation. The question of the scope of their ultimate production in discovery is a separate legal matter that will be addressed as discovery progresses; however, the records must be preserved now to ensure their availability.
4. Organizational charts for the Elgin Facility reflecting the reporting structure for Quality Assurance and EHS personnel, including any versions in effect at any time from 2019 through the present.
F. Electronic and Digital Information
In addition to the specific categories set forth above, all electronically stored information ("ESI") on any Nexford system or device that may contain materials responsive to this hold must be preserved. This includes, without limitation:
1. Data stored on Nexford's corporate servers, email systems (including email archives and journaling databases), backup tapes and backup media, shared network drives, cloud storage platforms (including but not limited to Sundial Systems, Cobalt Ridge Systems, Crestline Software, or similar services), and individual workstation hard drives.
2. Any company-issued devices previously assigned to Maciejewski, including laptops, desktop computers, mobile phones, and tablets, and any forensic images, data copies, or backups that were created from those devices at or after Maciejewski's separation from the Company. These devices must be preserved in their current state and must not be wiped, reformatted, reassigned, or otherwise altered.
3. Any data from Nexford's Human Resources Information System ("HRIS"), timekeeping system, payroll system, or any other enterprise application containing records relating to Maciejewski or to the subjects at issue in this litigation.
4. All metadata associated with electronic documents falling within the scope of this hold must be preserved intact. Documents must not be converted, reformatted, printed to paper or PDF, or otherwise processed in any manner that would alter or destroy native metadata, including but not limited to file creation dates, modification dates, author information, and access history.
IV. Identified Key Custodians
The following individuals are designated as key custodians whose files, documents, and ESI must be preserved in connection with this litigation hold:
Additional custodians may be identified as this litigation progresses and as additional facts become known through investigation and discovery. Calderwood & Harkness will provide supplemental instructions identifying any additional custodians and the scope of preservation applicable to their files.
Each of the custodians identified above should be individually notified of this litigation hold and should be provided with a copy of this notice. Each custodian should acknowledge receipt of this notice in writing. A suggested Custodian Acknowledgment Form is attached to this letter or will follow under separate cover. Completed acknowledgment forms should be returned to Calderwood & Harkness at the address and contact information provided in Section IX below.
It is critical that each custodian understand that they bear personal responsibility for preserving all documents and ESI within their possession, custody, or control that fall within the scope of this hold, and that they must take affirmative steps to identify and secure such materials.
V. Geographic and Facility Scope
This litigation hold applies to documents and ESI located at all Nexford locations, including but not limited to:
• Elgin Facility: 2700 Industrial Parkway, Elgin, Illinois 60123 — This is the primary locus of the events giving rise to the Plaintiff's claims, including Maciejewski's employment, his safety reports, the Building C chemical storage conditions, and his disciplinary history and termination.
• Corporate Headquarters: 500 Commerce Drive, Suite 400, Schaumburg, Illinois 60173 — Home to the General Counsel's office, Human Resources, and centralized corporate functions.
• Rockford Facility: 1180 Auburn Road, Rockford, Illinois 61101 — To the extent that any relevant records, communications, or comparator discipline records are maintained at this location.
• Joliet Facility: 4455 Larkin Avenue, Joliet, Illinois 60435 — To the extent that any relevant records, communications, or comparator discipline records are maintained at this location.
The hold applies equally to centrally maintained records (including those held by HR, the legal department, EHS, and IT at the corporate level) and to locally maintained records at the Elgin plant or at any other Nexford facility where relevant materials may be stored.
VI. Obligations and Instructions
A. Immediate Suspension of Routine Destruction
Effective immediately upon receipt of this notice, all routine document destruction, recycling, shredding, and electronic deletion or overwriting schedules must be suspended with respect to any materials falling within the categories described in Section III above. This directive includes but is not limited to:
• Suspension of any auto-delete policies for email accounts, including policies that automatically delete emails after a specified retention period;
• Suspension of backup tape rotation schedules that would result in the overwriting or destruction of backup media containing potentially responsive data;
• Suspension of any scheduled electronic data purges, whether automated or manual, affecting servers, databases, shared drives, or individual workstations;
• Suspension of any physical document destruction schedules, including routine shredding, recycling, or off-site disposal of paper records.
Nexford's IT department should be notified immediately and should implement technical measures necessary to prevent the deletion, overwriting, or alteration of potentially responsive electronic data across all systems and platforms. Calderwood & Harkness is available to consult with Nexford's IT personnel regarding the specific technical steps that should be taken.
B. Affirmative Preservation Steps
Beyond the suspension of routine destruction, each key custodian and each department head or manager who receives this notice should take the following affirmative steps:
1. Review and Segregation. Key custodians should promptly review their physical and electronic files and identify any materials falling within the scope of this hold. Physical documents should be collected and placed in a secure, clearly identified location (e.g., a locked file cabinet or designated storage area) and should not be removed, altered, annotated, or destroyed. Electronic documents should be identified and flagged, but should not be moved, renamed, altered, or deleted.
2. Physical Security. All physical documents subject to this hold should be stored in a manner that protects them from inadvertent loss, damage, or destruction. Access to the storage location should be limited to authorized personnel.
3. Electronic Preservation. Where practicable, forensic copies or images should be made of relevant electronic data sources, including hard drives, email archives, and shared drive folders. Calderwood & Harkness can arrange for a third-party forensic vendor to assist with imaging if necessary. Until forensic copies are completed, the original data sources must remain unaltered.
4. Maciejewski's Devices. Any company-issued devices previously assigned to Darren K. Maciejewski that remain in Nexford's possession — including laptops, desktop computers, mobile phones, and tablets — must be preserved in their current state. These devices must not be wiped, reformatted, repurposed, reassigned to another employee, or otherwise altered. If any such devices are currently in storage, they should be identified, secured, and inventoried.
C. Third-Party Custodians
To the extent that documents or information within the scope of this litigation hold are maintained by third-party service providers, Nexford should issue parallel preservation instructions to those providers. Relevant third parties include, but may not be limited to:
• Fulcrum Benefits Consulting, Inc. — third-party benefits administrator that may maintain records relating to Maciejewski's benefits enrollment, claims, and coverage;
• Grantham & Associates, LLP — auditing firm that may possess audit records, workpapers, or internal control assessments referencing personnel matters or EHS compliance at the Elgin Facility;
• IT hosting or cloud service providers — any third-party providers that host, store, or manage Nexford's electronic data, email systems, or collaboration platforms.
Calderwood & Harkness can assist in drafting appropriate third-party preservation letters to ensure that these providers are placed on notice of their obligations. Please advise us of any additional third-party service providers who may maintain relevant records so that we can coordinate preservation efforts.
D. Ongoing Obligation
This litigation hold remains in effect until Calderwood & Harkness provides written notice that the hold has been released. The hold may be modified, expanded, or narrowed as the litigation develops and as additional information becomes available. Any modifications will be communicated in writing.
The preservation obligation is a continuing one. As new documents are created and new communications occur during the pendency of this litigation, those materials must also be preserved to the extent they fall within the categories described herein. Key custodians and department heads should remain mindful of the hold and should ensure that newly created materials are retained consistent with its terms.
Any questions about whether a particular document, communication, or category of information falls within the scope of this hold should be resolved in favor of preservation. If there is any doubt, preserve the material and direct the question to:
• Nadia Petrov, Lead Associate, Calderwood & Harkness LLP
• Bernard Crawford, Partner, Calderwood & Harkness LLP
Contact information is provided in Section IX below.
VII. Coordination with EPLI Carrier
We note for the record that Nexford has notified its Employment Practices Liability Insurance ("EPLI") carrier, Verdant Mutual Insurance Company, of the Maciejewski claim. The applicable policy is EPLI Policy No. EPLI-VM-2021-04782, which provides a per-occurrence limit of $2,000,000 and an aggregate limit of $5,000,000, subject to a self-insured retention of $50,000.
Verdant Mutual has acknowledged coverage of the claim subject to a reservation of rights letter. The assigned claims adjuster is Brianna Choi. Verdant Mutual has approved Calderwood & Harkness LLP as panel counsel for this matter.
It is important to emphasize that Nexford's preservation obligations under this litigation hold exist independently of any insurance-related considerations. Compliance with this hold is the Company's obligation regardless of coverage determinations, and the existence of the reservation of rights does not alter or diminish the scope of preservation required. All steps outlined in this notice must be implemented irrespective of the status of insurance coverage.
VIII. Consequences of Non-Compliance
We wish to underscore the seriousness of the preservation obligations set forth in this notice. The failure to preserve relevant evidence — whether through intentional destruction, negligent loss, or failure to implement adequate preservation measures — can result in severe consequences, including:
• Adverse inference instructions permitting the jury to presume that destroyed or lost evidence was unfavorable to Nexford;
• Monetary sanctions imposed against the Company and, potentially, against individual officers or employees responsible for the failure;
• Evidentiary preclusion barring Nexford from introducing certain evidence or arguments at trial;
• Issue preclusion or default judgment in extreme cases of willful spoliation; and
• Disciplinary referrals and potential professional responsibility consequences for counsel.
Courts in Illinois, as well as federal courts, have broad discretion to impose sanctions for the spoliation of evidence and have demonstrated an increasing willingness to do so in cases involving the destruction of ESI. The risk of sanctions is not limited to intentional destruction; courts have imposed sanctions where a party merely failed to implement reasonable preservation measures after a hold was triggered.
Each custodian and each department head who receives this notice bears personal responsibility for compliance within their respective area of control. This means that each recipient must take the steps described herein, ensure that individuals under their supervision are aware of the hold, and confirm that appropriate preservation measures have been implemented.
IX. Acknowledgment and Contact Information
We respectfully request that Ms. Svendsen and Ms. Donnelly each acknowledge receipt of this litigation hold notice and confirm in writing that appropriate steps have been taken — or are being taken — to implement the hold across all Nexford facilities, departments, and systems.
In addition, we request that each key custodian identified in Section IV (Frank Bosch, Catherine Donnelly, Liam Gallagher, and Tara Svendsen) complete and return a written acknowledgment confirming that they have received, read, and understand the terms and obligations of this litigation hold. A Custodian Acknowledgment Form is attached to this letter or will be provided under separate cover. Completed acknowledgment forms should be returned promptly to:
Nadia Petrov Calderwood & Harkness LLP 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606
Email: npetrov@calderwoodharkness.com
Any questions regarding the scope of this litigation hold, the identification of responsive materials, or specific preservation issues should be directed to:
Bernard Crawford, Partner Calderwood & Harkness LLP Telephone: (312) 555-7812
Email: bcrawford@calderwoodharkness.com
Nadia Petrov, Lead Associate Calderwood & Harkness LLP Telephone: (312) 555-7834
Email: npetrov@calderwoodharkness.com
We are available to meet with you, your IT department, and your records management personnel to provide further guidance on the implementation of this hold. Given the urgency of the preservation obligations, we recommend scheduling such a meeting at the earliest available opportunity, and no later than April 8, 2022.
Thank you for your prompt attention to this matter. We recognize that implementing a litigation hold requires significant effort across multiple departments and facilities, and we appreciate your diligence in ensuring that Nexford meets its preservation obligations fully and in a timely manner.
Very truly yours,
CALDERWOOD & HARKNESS LLP
By: ________
Bernard Crawford Partner 227 West Monroe Street, Suite 3600 Chicago, Illinois 60606 Telephone: (312) 555-7812
Email: bcrawford@calderwoodharkness.com
cc: Bernard Crawford, Calderwood & Harkness LLP (file copy) cc: Renata Vasquez, Calderwood & Harkness LLP cc: Nadia Petrov, Calderwood & Harkness LLP cc: James Underwood, Calderwood & Harkness LLP
Enclosure: Custodian Acknowledgment Form (attached hereto or to follow under separate cover)
CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT This document and the information contained herein are protected by the attorney-client privilege and the work product doctrine. This communication is intended solely for the use of the addressees and other authorized recipients. Any unauthorized review, use, disclosure, or distribution is prohibited. If you have received this communication in error, please notify the sender immediately and destroy all copies of the original.
No. | Name | Title | Facility
1 | Frank Bosch | Plant Manager | Elgin Facility
2 | Catherine "Cat" Donnelly | Vice President, Human Resources | Corporate Headquarters
3 | Liam Gallagher | Director, Environmental Health & Safety | Elgin Facility
4 | Tara Svendsen | General Counsel | Corporate Headquarters

CONFIDENTIAL — ATTORNEY-CLIENT PRIVILEGED / ATTORNEY WORK PRODUCT

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