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June 8, 2011 Evergreen Steering Committee RE: Evergreen Security, Ltd. v Hernan Castro and Ramon Castro Dear Committee members: The trial against the Castro’s in Costa Rica is the final piece of litigation in the Evergreen bankruptcy case and has been going on for some time. This letter will update you on the status. It repeats the information in my December letter, but this will give you a complete overview of the case. After getting a $35 million default judgment against Intrados S.A. in US Bankruptcy Court, I filed a criminal case against Hernan Castro and Ramon Castro in Costa Rica in 2002. The Castro’s were the owners of Intrados S.A. The Court held a required mediation in Costa Rica in February 2005. I appeared at the mediation, but the defendants did not appear. There was no resolution of the case. Before Mr. Boelens and Mr. Boyd were sentenced for their criminal actions in the Evergreen case, I took them to Costa Rica in February 2005 to testify. This was done at my request as Boelens and Boyd would not be able to testify after their incarceration in the US. The Court took a full day’s testimony from them and it became part of the record. Subsequent to 2005, I continued to petition the Court to set a trial date. Finally the Court set a trial date for March 1, 2010. Ted NeSmith, a forensic expert I hired to testify as an expert in the case, and I appeared in Court on the first day of trial. The defendants raised eight objections, which were taken under consideration by the Court until March 4, 2010, at which time the Court requested both the Castro’s and me present more evidence on the motions on March 18, 2010. I appeared in Court on March 18, 2010, however one of the three judges was ill and the trial could not continue. Under Costa Rican law a trial cannot be postponed more than ten working days, so a new trial had to be set with three new judges. The defendants’ dismissal motions have yet to be ruled upon by the Court. My counsel in Costa Rica has requested the Court set a new trial date, which was set this week for May 30, 2011 to June 11, 2011. Mr. NeSmith and I appeared in Court on May 30, 2011. The defendants raised fourteen objections, which were taken under consideration by the Court until June 2. Additionally, the defendants told the Court they had filed a civil suit against my Costa Rican counsel and me for not having the authority to file the criminal suit against them. We have not been served and I have not seen the paperwork on this suit. My authority to file the suit was raised last year in one of their eight objections, but was not ruled upon. The Court again postponed the trial until June 6, 2011 to have more time to consider the objections and the civil suit. I appeared in Court on June 6, 2011 and the Court ruled against the defendants on all but two of the objections. Each of the two remaining had to do with my authority to file the criminal suit, which was the basis of the civil suit they filed. The Court wants the civil suit heard before the criminal suit, which I have been advised is not in accordance with the law in Costa Rica. I will file an appeal of this ruling and request the criminal suit not be delayed by the civil suit. I have no definite time estimate on the appeal or the two suits at this time, but will advise you when I do. Very truly yours, R.W. (Bill) Cuthill, Jr., President
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