Company in the ordinary course of business, is subject to claims made under, and from time to time is named as a defendant in
legal proceedings relating to the operations of its business, including the sale of its products. The Company believes that the
reserves reflected in its financial statements are adequate to pay losses and loss adjustment expenses which may result from such
claims and proceedings; however, such estimates may be more or less than the amount ultimately paid when the claims are settled.
In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Companys
financial position, results of operations, or liquidity.
August 26, 2010, the Company was served with a wrongful death lawsuit filed by the Estate of a former employee who was fatally
injured in a workplace accident while an employee of the Company. The accident occurred in September 2008. The Plaintiff has demanded
$2,500,000 to settle this claim. The Company intends to vigorously defend this case and has contacted its liability insurance
carrier to request defense and indemnification of any losses incurred in connection with this lawsuit. A motion to dismiss the
Complaint was granted without prejudice in January 2012, allowing the Plaintiff the ability to file an amended Complaint. There
has been no activity related to this lawsuit since January 2012.