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I ��rracon <br />Litigation Statement <br />Terracon is a large engineering firm specializing primarily in geotechnical, <br />environmental, and construction materials testing and we perform tens of thousands of <br />projects nationwide. Given the large volume of projects we perform annually, we are <br />subject to periodic claims and litigation. The number of claims received annually is a <br />very small percentage of the overall number of projects performed, well less than 0.5% <br />of the total. <br />As a large firm performing many projects, on very rare occasions we have terminated <br />services on our projects prior to project completion. These situations usually arise from <br />a failure to pay for those services, or from decisions to reduce our scope of service to <br />the point where we are no longer comfortable, from a professional perspective, with the <br />continuation of our services on a project. Again, we would stress that we perform <br />several thousand projects annually and these situations arise very rarely and only after <br />thorough efforts to reasonably resolve these issues. <br />Terracon carries a robust program of insurance to protect us and our clients when <br />applicable against claims arising out of our services. The majority of our reported claims <br />are not ultimately pursued against Terracon. In the claims that are pursued, Terracon <br />has been very successful in defending itself against claims and in many of these cases, <br />has been able to be completely vindicated. None of our claims have in the past <br />impacted or are estimated in the future to impact either the financial strength of our <br />company or the ability to provide quality services to our clients. <br />Due to the confidentiality and sensitivity of claim information, Terracon does not provide <br />specific information on individual claims or litigation. If you have any specific questions <br />or concerns about this disclosure, feel free to contact us to discuss further. <br />Legal Contact: <br />Aaron Mann <br />Senior Attorney <br />(913) 774-1090 <br />-236- <br />