CIRCUIT COURT OF THE FIRST CIRCUIT, STATE OF HAWAI I

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1 CIRCUIT COURT OF THE FIRST CIRCUIT, STATE OF HAWAI I If you own a home in the Ocean Pointe Project, District of Ewa, you may qualify for a $2,000 payment and your rights may be affected by a class action settlement. A court authorized this Notice. This is not a solicitation from a lawyer. You may have already received a previous Notice concerning this same settlement. This Notice provides updates on the settlement, including new deadlines for the settlement process and specifying the date on which you must own your home to qualify for a payment. If you have already submitted a verification form and still wish to qualify for a $2,000 payment, you do not need to submit a new verification form or do anything more to qualify. You may only qualify for one $2,000 payment per qualifying Structure. You are not entitled to a second or an additional $2,000 payment even though you may be receiving a second notice concerning this Settlement. A Settlement has been reached in a class action lawsuit against Haseko Homes, Inc., Haseko Construction, Inc., Ke Noho Kai Development, LLC, Spinnaker Place Development, LLC, and The Fairway s Edge Development, LLC ( Defendants ) claiming that the PEX water distribution systems ( PEX Systems ), including, but not limited to, the brass plumbing fittings, installed in Ocean Pointe homes are defective and do not comply with building and plumbing codes. You received this Notice because you may be part of the PEX Brass Fittings Class ( PEX Class ) in this Settlement. The PEX Class includes all individual and entity homeowners who own homes constructed with brass plumbing fittings in their crosslinked polyethylene ( PEX ) water distribution systems PEX Brass Plumbing Fittings in the Ocean Pointe Project, located in the District of Ewa, City and County of Honolulu, Island of O ahu, State of Hawai i. If you are included in the PEX Class, you may qualify for a $2,000 payment if you are the owner of the affected structure on the date the Court enters Final Orders and Judgments. The Final Judgment Date is defined below and also in Paragraph 41 of the Master Class Action Settlement and Release Agreement, a copy of which can be found on the class website. If the sale of your property closes before the Court enters Final Judgment in the case, you are required to inform the buyer of the settlement, and the buyer will instead qualify for the payment if a valid verification form has been submitted. Your legal rights are affected whether you act or don t act. Read this Notice carefully. SUBMIT A VERIFICATION FORM Early Registration Deadline: August 9, 2015 Final Cut-Off: July 12, 2016 EXCLUDE YOURSELF Deadline: May 29, 2015 OBJECT Deadline: May 29, 2015 YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT The only way to receive payment is to submit a Verification Form. If you have already submitted a verification form and still wish to receive a $2,000 payment, you do not need to submit a new verification form. If you do not submit your verification form by the Final Cut-Off, you waive your right to receive payment. This is the only option that allows you to ever be part of another lawsuit against the Defendants about the legal claims resolved by this Settlement. If you exclude yourself from this Settlement, you will not be able to get a payment from it. You can object to the Settlement by writing to the Court about why you do not like it. ATTEND THE HEARING June 12, 2015, 3:00 p.m. DO NOTHING You can ask to speak to the Court about the fairness of the Settlement. If you do nothing, you will not receive a payment from this Settlement and you will give up your right to ever be part of another lawsuit against the Defendants and other released parties about the legal claims resolved by this Settlement. These rights and options are explained further below. The Court in charge of this case still has to decide whether to approve the Settlement. Payments will be made if the Court approves the Settlement and after any appeals are resolved. Please be patient. HKSNTP3

2 WHAT THIS NOTICE CONTAINS BASIC INFORMATION PAGE 3 1. What is a class action lawsuit? 2. What is this class action lawsuit about? 3. Why did I receive this Notice? 4. Why is there a settlement in this class action lawsuit? 5. Why was this Notice issued? THE SETTLEMENT CLASS WHO IS INCLUDED PAGE 3 6. Who is included in the Settlement? 7. Who isn t included in the Settlement? THE SETTLEMENT BENEFITS WHAT YOU GET IF YOU QUALIFY PAGE 4 8. What does the Settlement provide? 9. What can I get from the Settlement? HOW TO GET BENEFITS SUBMITTING A VERIFICATION FORM PAGE How do I get a payment? 11. When will the payments be made? 12. What rights am I giving up to get a payment and stay in the PEX Class? 13. What are the Released Claims? EXCLUDING YOURSELF FROM THE SETTLEMENT CLASS PAGE How do I opt out of the Settlement? 15. If I exclude myself, will I get a payment from this Settlement? 16. If I don t exclude myself, can I sue the Defendants for the same thing later? THE LAWYERS REPRESENTING YOU AND THE SETTLEMENT CLASS PAGE Do I have a lawyer in this case? 18. How will Class Counsel be paid? OBJECTING TO THE SETTLEMENT PAGE How do I tell the Court if I don t like the Settlement? 20. What is the difference between objecting and asking to be excluded from the Settlement? THE COURT S FAIRNESS HEARING PAGE When and where will the Court decide whether to approve the Settlement? 22. Do I have to come to the hearing? 23. May I speak at the hearing? IF YOU DO NOTHING PAGE What happens if I don t do anything? GETTING MORE INFORMATION PAGE How do I get more information? -2-

3 BASIC INFORMATION 1. What is a class action lawsuit? In a class action, one or more people known as a Plaintiff or Class Representative sue on behalf of all people who have similar claims. The people included in the class action are called a Class and the Class consists of Class Members. The claims of the Class and Class Members are resolved together by one court. Class Members have the option to exclude themselves from (or opt out of) the Class, object to the Settlement, submit a Verification Form to receive benefits or do nothing. If a Class Member elects to be excluded from the Class, he or she will not be bound by the results of this class action and will not receive any benefits from the Settlement. More information regarding Class Member s rights and the steps that need to be taken to exercise those rights is provided below. In this case, Ocean Pointe homeowners Gordon Kai, Tadashi Mitsuoka, and Victoria Mitsuoka have been appointed by the Court as Class Representatives. 2. What is this class action lawsuit about? This lawsuit is about the PEX Brass Plumbing Fittings installed in certain Ocean Pointe homes. Plaintiffs claim the PEX Brass Plumbing Fittings are defective and do not comply with building and plumbing codes. Defendants deny all of Plaintiffs claims and allegations in the lawsuit. 3. Why did I receive this Notice? You received this Notice because records indicate that you own a home in the Ocean Pointe Project, located in the District of Ewa, that was constructed with PEX Brass Plumbing Fittings and therefore you are included in the Settlement as a PEX Class Member. 4. Why is there a Settlement in this class action lawsuit? The Court did not decide which side was right or whether the PEX Brass Plumbing Fittings are defective. Instead, both sides agreed to a Settlement to avoid the costs and risks of further litigation and provide benefits to Class Members. The Settlement does not mean that a Court found that the Defendants broke any laws or did anything wrong. The Class Representatives and the lawyers representing them and the Class (called Class Counsel ) believe that the Settlement is in the best interests of all Class Members. 5. Why was this Notice issued? A state court authorized this Notice because you have a right to know about the proposed Settlement of this class action lawsuit and about all of your options before the Court decides whether to approve the Settlement. This Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, and who may qualify for them. Judge Gary W.B. Chang of the Circuit Court of the First Circuit, Hawai i is overseeing this class action. The case is known as Kai v. Haseko Homes, Inc., No The homeowners who sued are called the Plaintiffs. The companies they sued, Haseko Homes, Inc., Haseko Construction, Inc., Ke Noho Kai Development, LLC, Spinnaker Place Development, LLC, and The Fairway s Edge Development, LLC are called the Defendants. -3-

4 THE SETTLEMENT CLASS WHO IS INCLUDED 6. Who is included in the Settlement? The Settlement includes the PEX Class consisting of all individual and entity homeowners who own homes on the date the Court enters Final Orders and Judgments constructed with brass plumbing fittings in their crosslinked polyethylene ( PEX ) water distribution systems in the development known as the Ocean Pointe Project located in the District of Ewa, City and County of Honolulu, Island of O ahu, State of Hawai i. To qualify for a payment, you must own the home on the date the Court enters Final Orders and Judgments. If the sale of your property closes before the Court enters Final Judgment in the case, you are required to inform the buyer of the settlement, and the buyer will instead qualify for the payment if a valid verification form has been submitted. The Final Judgment Date means the first date by which both Final Orders and Judgments are entered pursuant to the Master Class Action Settlement and Release Agreement. NOTE: Certain PEX Class Members are also part of the Hurricane Straps Litigation (Charles v. Haseko Homes, No (RAN) and Alvarez v. Haseko Homes, Inc., No (RAN)). If you are a Class or Subclass Member in the Hurricane Straps Litigation, you will receive a separate notice about the settlement of that case. 7. Who isn t included in the Settlement? The following are excluded from the PEX Class: (i) people who validly and timely exclude themselves; (ii) people who have settled with, released, or otherwise had their claims adjudicated on the merits against Defendants that are substantially similar to those alleged in the litigation; (iii) people with only personal injury claims as a result of the alleged defects; (iv) the Honorable Rhonda A. Nishimura, the Honorable Gary W.B. Chang, and any other state or federal judge that is or has presided over any one or all of the litigation, including any related appeals, and any other related cases; (v) governmental agencies and entities; and (vi) people who close the sale of their home before the date the Court enters Final Judgment in the case. THE SETTLEMENT BENEFITS WHAT YOU GET IF YOU QUALIFY 8. What does the Settlement provide? A Settlement Fund in the amount of $7,394,089 will be created if the Settlement is approved and becomes final. The Settlement Fund will be used to make payments to PEX Class Members, as well as pay for the Administrator s fees and costs, the Notice Plan, the Verification Process, the Special Master s fees and costs, incentive awards for the Class Representatives, and court-approved attorneys fees and costs. If any money remains after making the payments listed above, the balance of the Settlement Fund will be distributed as provided for in Paragraph 2 of Exhibit 2 to the Master Class Action Settlement and Release Agreement, which is available on the class website. 9. What can I get from the Settlement? PEX Class Members who submit a valid Verification Form will receive a $2,000 payment for each qualifying home or structure they own at the time the Court enters Final Judgment. -4-

5 HOW TO GET BENEFITS SUBMITTING A VERIFICATION FORM 10. How do I get a payment? You must complete and submit a Verification Form. The Early Registration Deadline to submit a Verification Form is August 9, The Final Cut-Off to submit a Verification Form is July 12, If you do not submit a Verification Form by the Final Cut-Off, you will waive your right to receive payment. Verification Forms may be submitted online and are available at or by calling When will the payments be made? The Court will hold a hearing on June 12, 2015 to decide whether to approve the Settlement. Payments will be made if and when the Court grants approval of the Settlement and any appeals are resolved. 12. What rights am I giving up to get a payment and stay in the PEX Class? Unless you exclude yourself, you are staying in the PEX Class and this Settlement. Upon final approval of the Settlement by the Court pursuant to the entry of the Final Order and Judgment, you will be legally bound by the Court s Final Order and Judgment, and all other Court orders, and shall be deemed to have released Defendants from the Released Claims described in Question 13 below. You won t be able to sue, continue to sue, or be part of any other lawsuit against the Defendants for the legal issues and claims resolved by this Settlement. The specific claims and rights you are giving up are called Released Claims (see Question 13, below). 13. What are the Released Claims? The Released Claims mean that in exchange for the Settlement, all PEX Class Members, on behalf of themselves and their agents, heirs, executors, administrators, successors, assigns, insurers, attorneys, representatives, shareholders, owners associations, and any and all Persons who seek to claim through or in the name or right of any of them, release, acquit and forever discharge (as by an instrument under seal without further act by any person, and upon good and sufficient consideration) Defendants and all other persons, entities or companies from, against, and on account of, any and all PEX Claims, which they know have or have ever had, and whether known or unknown. PEX Claims means any and all past, present, and future claims, controversies, disputes, actions, causes of action, suits, liability or liabilities, obligations, judgments, liens, debts, rights, including rights to appeal, losses, demands, or damages, of whatever name or nature, including any and all claims for general damages, special damages, exemplary damages, punitive damages, diminution in value, damages of every kind or nature whatsoever for property damage, for contribution, for defense or indemnity (whether written, contractual, in an insurance policy, or otherwise), for reimbursement or recoupment, for attorneys fees, for litigation costs, and for any and all other additional losses, whether based on any theory in contract, tort, warranty, including, but not limited to, the Home Builder s Limited Warranty, PWC Form No. 117, the Builder s Limited Warranty, PWC Form Nos. 107 and/or 107H, federal, state, or local statute or law, common law, whether in law or equity, whether contingent or uncertain, whether latent or patent, whether known or unknown, and whether anticipated or not, in any manner involving, resulting from, arising out of, connected or traceable to, or in any way relating to, either directly or indirectly, the PEX Lawsuit; any and all claims asserted or that could have been asserted in the Third Amended Complaint, filed November 16, 2011, including, but not limited to, claims for serious bodily injuries such as illnesses related to toxic mold and metal contamination from the drinking water; and/or the PEX Systems installed in Ocean Pointe Homes. EXCLUDING YOURSELF FROM THE SETTLEMENT CLASS If you want to keep the right to sue or continue to sue the Defendants about the legal claims in this lawsuit, and you don t want to receive benefits from this Settlement or the settlement of the Hurricane Straps Litigation, you must take steps to exclude yourself. This is called excluding yourself or is sometimes called opting out of the Settlement. -5-

6 14. How do I opt out of the Settlement? To exclude yourself from the Settlement, you must send a letter by first class mail to the Claims Administrator stating that you want to be excluded from the PEX Class in Kai v. Haseko Homes, Inc., No Your letter must also include: (1) your name, current address and telephone number; (2) the address of the home or structure you wish to have excluded, if different than your current address; (3) the name and contact information for the owner of the home or structure, if different from you; and (4) your signature or the signature of the home or structure owner. To be valid, your exclusion request must be mailed to the Claims Administrator at the address below with a postmark no later than May 29, Ocean Pointe Claims Administrator P.O. Box Providence, RI If you are also a Class or Subclass Member in the Hurricane Straps Litigation and you exclude yourself from this Settlement, you will automatically exclude yourself from that settlement as well. You cannot exclude yourself from this Settlement and still receive the benefits of Hurricane Straps Litigation settlement. Likewise, you cannot exclude yourself from the Hurricane Straps Litigation settlement and also receive the benefits of this Settlement. 15. If I exclude myself, will I still get a payment from this Settlement? No. If you exclude yourself from the Settlement, you are telling the Court that you don t want to be part of the Settlement Class in this Settlement. You can only get a payment if you stay in the Settlement Class (and Hurricane Straps Litigation Class or Subclass, if applicable) and submit a valid Verification Form as described above. 16. If I don t exclude myself, can I sue the Defendants for the same thing later? No. Unless you exclude yourself, you are giving up the right to sue the Defendants for the claims that this Settlement resolves. You must exclude yourself from this Settlement Class to start or continue with your own lawsuit or be part of any other lawsuit. THE LAWYERS REPRESENTING YOU AND THE SETTLEMENT CLASS 17. Do I have a lawyer in this case? Yes. The Court appointed Melvin Y. Agena of the Law Offices of Melvin Y. Agena, Glenn K. Sato of the Law Office of Glenn K. Sato, and Graham B. LippSmith of Kasdan LippSmith Weber Turner LLP to represent you and other Class Members. Together these lawyers are called Class Counsel. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense. 18. How will Class Counsel be paid? Class Counsel will ask the Court for attorneys fees, costs and expenses of up to $2,332,124, plus any Hawai i General Excise and Use Tax. If approved by the Court, these fees, costs and expenses as well as incentive awards to the Class Representatives (not to exceed $5,000 per home or structure owned by each) and the costs associated with administering the Settlement will be paid from the Settlement Fund before making payments to Settlement Class Members who submit valid Verification Forms. -6-

7 OBJECTING TO THE SETTLEMENT You can tell the Court if you don t agree with the Settlement or any part of it. 19. How do I tell the Court if I don t like the Settlement? If you re a Settlement Class Member and do not request exclusion, you can object to the Settlement. You can give reasons why you think the Court should not approve it. The Court will consider your views before making a decision. To object, you must prepare, sign and mail a written objection stating that you object to the Settlement in Kai v. Haseko Homes, Inc., No Your written objection must state: (1) your full name, current address, and telephone number; (2) the address of the home or structure included in the Settlement, if different than your current address; (3) the name of the owner of the home or structure, if different from you; (4) state that you have reviewed the definitions of the PEX Class, you understand that you are a member of the PEX Class, and state that you have not opted out of the PEX Class; (5) all legal and factual bases for the objection being made; (6) provide copies of any documents that you wish to submit relating to your objection; (7) whether you intend to appear at the Fairness hearing and, if so, whether you will bring your own attorney; and (8) your signature or the signature of the home or structure owner. To be valid, your objection must be sent via first-class mail to the Claims Administrator at the address below with a postmark no later than May 29, Ocean Pointe Claims Administrator P.O. Box Providence, RI What s the difference between objecting and asking to be excluded from the Settlement? Objecting is simply telling the Court that you don t like something about the Settlement. You can object only if you stay in the Settlement Class (do not exclude yourself). Excluding yourself is telling the Court that you don t want to be part of the Settlement Class. If you exclude yourself, you cannot object because the Settlement no longer affects you. THE COURT S FAIRNESS HEARING The Court will hold a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak at the hearing if you give the required notice, but you don t have to. 21. When and where will the Court decide whether to approve the Settlement? The Court will hold a Fairness Hearing at 3:00 p.m. on Friday, June 12, 2015, at the Circuit Court of the First Circuit, State of Hawai i, Ka`ahumanu Hale, 777 Punchbowl Street, 4th Floor, Courtroom 16, Honolulu, Hawai i , to consider whether the Settlement is fair, reasonable, and adequate and decide whether to approve it. If there are objections, the Court will consider them. The Court will listen to people who have given the required notice that they would like to speak at the hearing (see Questions 22 and 23, below). The Court may also decide the amount of fees, costs and expenses for Class Counsel and the payment amount to the Class Representatives. At or after the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take. -7-

8 22. Do I have to come to the hearing? No. Class Counsel is working on your behalf and will answer any questions Judge Chang may have about the Settlement. But you are welcome to come at your own expense. If you file an objection to the Settlement, you don t have to come to Court to talk about it. As long as you mailed your written objection on time, signed it and provided all of the required information (see Question 19) the Court will consider it. You may also pay your own lawyer to attend, but it s not necessary. 23. May I speak at the hearing? Yes. You may ask the Court to speak at the Fairness Hearing. To do so, you must file a written request with the Court saying that it is your Notice of Intent to Appear at the Fairness Hearing in Kai v. Haseko Homes, Inc., No You must include your name, address, phone number, and signature. If you plan to have your own attorney speak for you at the hearing, you must also include the name, address and telephone number of the attorney who will appear. Your written request must be filed with the Claims Administrator by May 29, 2015 (see Question 19). IF YOU DO NOTHING 24. What happens if I don t do anything? If you do nothing, you won t get any benefits from this Settlement. If the Court approves the Settlement, you will be bound by its terms, and you will give up your right to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Defendants about the legal issues or claims resolved by this Settlement. GETTING MORE INFORMATION 25. How do I get more information? This Notice summarizes the Settlement. More details are in the Master Class Action Settlement and Release Agreement, and its Exhibits available at If you have questions, call toll-free ; visit or write to Ocean Pointe Claims Administrator, P.O. Box 43347, Providence, RI DATE: April 29,

A court authorized this Notice. This is not a solicitation from a lawyer.

A court authorized this Notice. This is not a solicitation from a lawyer. CIRCUIT COURT OF THE FIRST CIRCUIT, STATE OF HAWAI I If you own a home in the Ewa by Gentry development in Honolulu, Hawai i, you may qualify for home repairs and your rights may be affected by a class