PLAINTIFFS' ALLEGATIONS OF FRAUD AND BREACH OF FIDUCIARY DUTY ARISE FROM AN IN-PERSON PRESENTATION MADE ON MAY 29, 2007 BY ROCKWATER HEDGE LLC ("ROCKWATER"). CHARLES W. FISH WAS NOT AT THE PRESENTATION NOR WAS HE AFFILIATED WITH ROCKWATER OR ANY AFFILIATE OF ROCKWATER AT THAT TIME. PLAINTIFFS ALLEGE THAT ROCKWATER ACTED ON BEHALF OF CHARLES FISH INVESTMENTS, INC. ("CFI) AND THAT IT MADE MISREPRESENTATIONS TO PLAINTIFFS REGARDING THE ROCKWATER AMERICAN FUND. IN NOVEMBER 2007 CFI AND ROCKWATER MUNICIPAL ADVISORS LLC ("RMA") (F/K/A ROCKWATER HEDGE LLC) ENTERED INTO AN ASSET TRANSFER AGREEMENT AND CHARLES FISH WAS APPOINTED A MANAGING DIRECTOR OF RMA. CFI'S AND CHARLES FISH'S AFFILIATION WITH RMA WAS DISSOLVED IN MAY 2009. BOTH CFI AND CHARLES FISH DENY ALL OF THE ALLEGATIONS. NO FINDINGS HAVE BEEN MADE AT THIS TIME.

$4,800,000.00

ON DECEMBER 31, 2009 CERTAIN INVESTORS IN A HEDGE FUND MANAGED BY ROCKWATER MUNICIPAL ADVISORS, LLC ("RMA"), SUED SEVERAL ENTITIES AND PEOPLE, INCLUDING CHARLES FISH INVESTMENTS, INC. ("CFI") AND CHARLES W. FISH, CLAIMING DAMAGES FOR LOSSES THEY CLAIM TO HAVE SUFFERED BY INVESTING IN THE HEDGE FUND. CFI DID NOT RECOMMEND THE HEDGE FUND TO THESE INVESTORS NOR DID CFI MANAGE THE HEDGE FUND OR ANY OF ITS ASSETS. THESE INVESTORS WERE NEVER CFI CLIENTS AND CFI NEVER RECEIVED ANY COMPENSATION, MONETARY OR OTHERWISE, FROM THEM. AT BOTH A JURY TRIAL ON DECEMBER 2, 2011 AND A SUBSEQUENT BENCH TRIAL ON MARCH 7, 2012, CHARLES W. FISH AND CFI WERE EXONERATED OF ALL OF THE PLAINTIFFS' CLAIMS AND JUDGMENT WAS ENTERED IN FAVOR OF CHARLES W. FISH AND CFI ON JULY 6, 2012. PLAINTIFFS SUBSEQUENTLY FILED AN APPEAL WITH THE COURT OF APPEAL OF THE STATE OF CALIFORNIA. ON JULY 15, 2014 THE COURT OF ISSUED AN OPINION AFFIRMING THE JUDGMENT IN FAVOR OF CFI AND FISH. THE CALIFORNIA SUPREME COURT REFUSED THE PLAINTIFFS' PETITION FOR REVIEW, THEREBY AFFIRMING BOTH THE TRIAL COURT AND APPELLATE COURT RULINGS EXONERATING IN FULL BOTH CFI AND CHARLES W. FISH, PERSONALLY, OF ANY WRONGDOING.

MAY S. HASSO SERRANO FAMILY TRUST DATED 12-26-2006 AND NORMAN HASSO FAMILY TRUST DATED 12-26-2006, BY TRUSTEE RONALD HASSO

BREACH OF FIDUCIARY DUTY, COMMON LAW FRAUD, VIOLATION OF CAL. CORP. CODE SEC. 25400, 25500, PROFESSIONAL NEGLIGENCE, CONSTRUCTIVE FRAUD, BREACH OF CONTRACT, NEGLIGENT MISREPRESENTATION, DECEIT, UNJUST ENRICHMENT

JURY FOUND IN FAVOR OF DEFENDANT. APPELATE COURT UPHELD.

ON DECEMBER 31, 2009 CERTAIN INVESTORS IN A HEDGE FUND MANAGED BY ROCKWATER MUNICIPAL ADVISORS, LLC ("RMA"), SUED SEVERAL ENTITIES AND PEOPLE, INCLUDING CHARLES FISH INVESTMENTS, INC. ("CFI") AND CHARLES W. FISH, CLAIMING DAMAGES FOR LOSSES THEY CLAIM TO HAVE SUFFERED BY INVESTING IN THE HEDGE FUND. CFI DID NOT RECOMMEND THE HEDGE FUND TO THESE INVESTORS NOR DID CFI MANAGE THE HEDGE FUND OR ANY OF ITS ASSETS. THESE INVESTORS WERE NEVER CFI CLIENTS AND CFI NEVER RECEIVED ANY COMPENSATION, MONETARY OR OTHERWISE, FROM THEM. AT BOTH A JURY TRIAL ON DECEMBER 2, 2011 AND A SUBSEQUENT BENCH TRIAL ON MARCH 7, 2012, CHARLES W. FISH AND CFI WERE EXONERATED OF ALL OF THE PLAINTIFFS' CLAIMS AND JUDGMENT WAS ENTERED IN FAVOR OF CHARLES W. FISH AND CFI ON JULY 6, 2012. PLAINTIFFS SUBSEQUENTLY FILED AN APPEAL WITH THE COURT OF APPEAL OF THE STATE OF CALIFORNIA. ON JULY 15, 2014 THE COURT OF ISSUED AN OPINION AFFIRMING THE JUDGMENT IN FAVOR OF CFI AND FISH. THE CALIFORNIA SUPREME COURT REFUSED THE PLAINTIFFS' PETITION FOR REVIEW, THEREBY AFFIRMING BOTH THE TRIAL COURT AND APPELLATE COURT RULINGS EXONERATING IN FULL BOTH CFI AND CHARLES W. FISH, PERSONALLY, OF ANY WRONGDOING.