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129 LISBON STREET. P.O. BOX 961 LEWISTON. (207) 784-3576 ME 0-'1243-0961 FAX (207) 784-7699

800-244-3576

STEvEN D. SILIN

ssilin@bermansimmons.com

November 16, 2006 James W_ Cummings 95 Foxcroft Drive Scarborough, ME 04074 RE: James Cummings and Deborah Cummings v. Michael J. Waxman, Esq. OUf File No. 19539-01

Dear Jim: As you know, we have successfully recovered a settlement in the amount of$lSO,OOO.OO on your behalf and I am accounting to you as follows:

TOTAL AMOUNT RECEIVED

.......................

$150,000.00 $50,000.00

Less Attorney's Fee for Services Rendered

Less the following Disbursements: Orthopaedic Associates of Portland, PA. $ 28.75 Maine Medical Center , $ 59.80 Falmouth Orthopaedic Center ;-. $ 11.05 Neurosurgery Associates, PA _ $ 75.00 Cumberland Superior Court (filing fee v. Waxman) $120.00 Cumberland Superior Court (filing fee v. Westport) , $120.00 County of Cumberland (Service Fee) - .. $ 28.90 CVS Pharmacy $ 25.00 Clerk of the Law Court , - .. $ 60.00 State of Maine, Law and Legislative Reference Library - .. $ 5.45 Westlaw (Legal Research) $ 51.00 Conflict Solutions (Mediation fee) - . . . . . .. $ 1,760.00 Misc. Expenses (photocopies, postage, travel, etc.) $ 191.98 Other Deductions as Authorized by Client: William Howison, as Trustee for the Bankruptcy Estate of James and Deborah Cummings - . .. . . . .. $ 24,500.00 TOTAL DEDUCTIONS _ TO YOU PER ENCLOSED $ 77,036.93

BAL<\....l'l"CEREMITTED

CHECK .. $ 72,963.07

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W. Cummings -.November 16, 2006 Page 2

JIlles

To confirm your recent telephone conversation with my office, your health care insurer at the time of the incident at issue, Blue Cross and Blue Shield ("BCBSIt), may claim a right to reimbursement for monies it paid toward your medical bills for treatment of your injuries that you sustained in the incident on October 4, 1998. We have no opinion on whether BCBS would be barred from making a claim as a result of your bankruptcy filing. There is also an issue, even if it weren't barred, as to whether it would be entitled to monies from this case involving a recovery from the legal malpractice claim. In any event, you have instructed us not to make any contact with BCBS and you understand that should BCBS make a claim for reimbursement based on this settlement, it would be your responsibility to resolve that with them. As you know, we have remitted $24~500.00 to William Howison as Trustee of the bankruptcy estate. We have been assured that these monies will be sufficient to pay all creditors involved in the bankruptcy case. In fact there may be monies left over. Should there be any monies remaining after payment of your debt, administrative costs and fees, the balance will be remitted to you by Mr. Howison. Needless to say, I am very pleased with the result that we were able to obtain for you. As you know, we put an enormous effort into this important and novel claim.

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Again, it was a pleasure to have been of service to you. I wish you and Deborah all the best.

Very truly yours,

SDS/drr Enclosure cc: Barry E. Schklair, Esq.

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as EXCHANGE STREET. PORTLAND. MB 04101 (201) 1145211 FAX (207) 174-0166

23 WATER STREET. BANGOR. ME 04401 (207) 9902034

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CAUTION: READ BEFORE SIGNING

WITNESS our hands this

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Chapter 7 Estate of James W. and Deborah M. Cummings, .By:

/1~Jl/I (If-Chapter 7 Trustee Williams H. Howison, Esquire

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Deborah M. Cummings Westport Insurance Corp.
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129 LISBON STIUiET, P.O. BOX 961 LEWISTON, ME 04243-0961 (207) 784-3576 FAX (207) 784-7699 800-244-3576

STEVEN D. Sll.lN

ssiIin@bermansimmons.com

October 18, 2006

James W. and Deborah M. Cummings 95 Foxcroft Drive Scarborough, ME 04074 RE: .James Cummings and Deborah Cummings v. Michael.J. Waxman, Esq. Our File No. 19539-01

Dear James and Deborah: Enclosed please find a Settlement Agreement which needs to be signed by both of you on the lines indicated As you can see, it has already been signed by Attorney William H. Howison. Once you have executed this Release would you please forward the document back to my office in the enclosed self-addressed envelope that I am providing for your assistance. If you have any questions, please do not hesitate to call me. Thank you for your attention to this matter.

SDS/sh/l02506 Enclosure
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SETTLEMENT AGREEMENT

THIS AGREEMENT dated October -'

2006 is entered into this date between

Westport Insurance Corporation "(Westport") and James W. Cummings and Deborah M. Cummings ("Cummings") and Williams H. Howison, Chapter 7 Trustee ("Trustee") with respect to Reach-and-Apply litigation in the United States District Court, the District of Maine, Docket No. CV-05-206-P-C and on appeal in the Maine Supreme Judicial Court (Law Court Docket No. FED-05-290) arising out of the alleged negligence of Attorney Michael Waxman ("Waxman") during his representation of James Cummings in a lawsuit brought on behalf of James Cummings against the City of Portland and one or more of its police officers due to injuries allegedly suffered by James Cummings at the hands of a Portland police officer in 1998 ("Reach-and-Apply litigation"), and the subsequent bankruptcy filing made by the Cummings and still pending as In re James W. and Deborah M. Cummings, Debtors, United States Bankruptcy Court, District of Maine, Chapter 7 Case No. 03-20449 ("Bankmptcy Litigation"). FOR AND IN CONSIDERATION OF the execution of this document, and the payment to the Trustee and Cummings of $150,000, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 1. James and Deborah Cummings and the Trustee do for themselves, for any and all creditors in the Cummings Bankruptcy Litigation, and for any and all heirs, beneficiaries, successors or assigns and its officers, agents, (collectively, the "Cummings Parties"), hereby release, acquit and forever discharge Westport and its insured Michael Waxman, Esquire, their past, current and future officers, agents, employees, attorneys managers, affiliates, owners, insurers or re-insurers, and the respective successors, assigns and affiliates of such persons (collectively, the "Westport Parties"), of and from any and all manner of claims, actions and causes of action, suits, debts, demands, damages, or liabilities of any kind or nature

_ limitation third-party claims for indemnity, contribution, and any other action or cause of action, that any of the Cummings Parties now has or ever may have against any of the Westport Parties, on any legal theory, related to or arising out of the Reach-and-Apply underlying litigation in which Waxman represented James Cummings. 2. Dismissal. Subject to the entry of a non-appealable Compromise Order entered Litigation or any of the

pursuant to Fed. R. Bankr. P. 9019 by the Bankruptcy Court approving all terms and conditions of this Agreement,Cummings shall dismiss with prejudice and without costs the appeal now as well as the

pending in the Maine Supreme Judicial Court (Law Docket No.FED-06-290),

underlying action in Federal District Court that are entitled. James Cummings v. Westport

Insurance Corp .. Docket No. CV-05-206-P-C,

filing of a -Stipulation of Dismissal in both actions.

including without limitation the execution and Upon the execution of this Agreement,

Cummings shall immediately file Stipulations of Dismissal with Clerks of the Supreme Judicial Court and the United States District Court. 3. In return for the payment made to the Cummings Parties, the Cummings parties also agree to Defend, Indemnify and Hold Harmless the Westport Parties from any and all claims that might be asserted against any of the Westport Parties, including but not limited to reasonable attorneys fees and expenses incurred by the Westport Party or Parties in connection therewith, by any person, corporation or entity either arising out of the Reach-and-Apply responseto Litigation or in

any lawsuit or .claim brought by any of the Cummings Parties against such person,

corporation or entity. 4. Confidentiality. The parties hereto agree to maintain the confidentiality of the terms of this Agreement. The parties hereto agree that neither they nor their employees, agents,

representatives or attorneys will. at any time, directly or indirectly, divulge, publicize or disclose to any person or entity for any reason the terms of this Agreement except: (i) to the extent' necessary to enforce this Agreement; or (ii) to the extent necessary to disclose the terms of this Agreement to the parties' legal advisors in connection with seeking or obtaining legal advice, and excent for the conditions set forth in (i) and (ii) above, will only state that tile litigation or

- matters in dispute amongst the parties "have been resolved". If the Trustee must disclose the terms of this Agreement to any Chapter 7 Creditors of Cummings or to any other person or entity besides the Creditors and U.S. Trustee, the Trustee shall first provide 5 business days notice to Westport's counsel, Jeffrey A. Thaler, Esq. of Bernstein ShUTSawyer and Nelson, P.A., of the proposed notification.

5. It is expressly warranted by each party to this Settlement Agreement that no promise or inducement for this Agreement has been offered, except as set forth above. It is further

warranted by each party to this Settlement Agreement that the Agreement is executed without reliance upon any statement or representation of the persons or parties released, or their

representatives, concerning the nature and extent of their rights and the legal liability that mayor may not be imposed. It is acknowledged by all parties to this Release that acceptance of the

consideration set forth herein is in full accord and satisfaction of disputed claims for which liability is expressly denied, it being the intention of the Westport Parties merely to buy their peace and end the litigation. 6. All Parties to this Agreement agree to cooperate fully and execute any and-

an

supplementary documents and to take all additional actions that may be necessary or appropriate to give full force and effect the basic terms and intent of this Settlement Agreement. 7. State of Maine. Miscellaneous. This Agreement shall be construed pursuant to the laws of the

In the event that any litigation arises between the parties relating to any term of

this Agreement, the prevailing party in such litigation shall be entitled to recover its reasonable attorneys' fees. Each party to this Agreement represents that it has been represented by counsel in the negotiation and execution of this Agreement and has performed all desired and necessary due

.:..

diligence prior to the execution of this Agreement. The individuals executing this Agreement represent that they have full power and authority to execute this document on behalf of their respective principals. This Release and Settlement Agreement contains the entire agreement between the parties hereto and shall be binding upon and inure to the benefit of their respective successors and assigns. This document should not be construed or interpreted as an admission of guilt or liability by either party, and the terms of this document are contractual and not a mere recital. 8. Counterparts. This Agreement may be executed contemporaneously in one or

more counterparts, each of which shall be deemed an original, but all of which shall constitute the one and the same instrument. Each of the undersigned represents and warrants that he or she has read this Settlement Agreement, that the actions necessary to execute this Agreement have been taken, and that be or she is executing this Agreement freely and voluntarily, upon his or her best judgment, solely for consideration and express purposes described herein.