Masonite Woodruf

The purpose of this Notice is to inform you that your rights may be affected by the proceedings in the lawsuit known as Smith, et al. v. Masonite , CV-98-2447, heard before the Honorable Robert G. Kendall, in the Circuit Court of Mobile County, Alabama. This Notice is given pursuant to Alabama Rule of Civil Procedure 23 and by order of the Circuit Court of Mobile County, Alabama

2. What is the lawsuit about?

Beginning in 1995, H. Quin and Kathryn Smith, Kenneth and Leonor Palmer, and Ronald and Anita Winger (the "Representative Plaintiffs") began investigating problems with Woodruf roofing and subsequently filed two lawsuits, including one in Mobile County Circuit Court entitled Smith, et al. v. Masonite Corp., et al. , No. CV-97-3313. The Representative Plaintiffs, who own structures with Woodruf roofing, brought their cases as a class action against defendants Masonite Corporation and International Paper Company (together, "Masonite" or "Defendants") on behalf of all individuals or entities owning property in the United States on which Masonite Woodruf roofing has been incorporated and installed since January 1, 1980.

Plaintiffs sought relief based on theories of negligence, breach of express warranties, and fraud. Plaintiffs allege that Woodruf roofing manufactured by Masonite Corporation, and installed and incorporated into residential, commercial and/or rental property since January 1, 1980, will prematurely fail and deteriorate, causing the Class members to suffer and continue to suffer damages. Defendants vigorously deny these allegations and any and all liability for these claimed allegations. Defendants further deny that Class members are generally entitled to damages or other relief from the Defendants.

On January 6, 1999, the Circuit Court of Mobile County, Alabama, approved a settlement of this matter, certifying this action as a class action, defining the Class as: "all Persons who have owned, or own, Property on which Masonite Woodruf roofing has been incorporated and installed in the United States and United States Territories from January 1, 1980 to the date of the Final Order and Judgment in this Action."

Plaintiffs and their counsel have conducted an extensive investigation of the claims concerning Woodruf roofing. They have reviewed several hundred thousand documents and worked extensively with top experts in the field.

This Settlement is a compromise of disputed claims and is not to be taken as an indication of liability or that damages have been, or would be, found against Defendants if the action proceeded to trial

3. What is Woodruf roofing?

Woodruf roofing is a roofing product composed of pressure bonded fibers designed to emulate the look of natural cedar roofing. It is made of real wood fibers that are pressed in 12" x 48" shingles

4. Who is covered by the Settlement?

If you qualify as an Eligible Claimant, you may be entitled to recover under the Settlement Agreement. To be an Eligible Claimant, you must:

(1) own property in the United States or its territories in which Masonite Woodruf roofing has been incorporated and installed between January 1, 1980 and January 6, 1999, and have not assigned the claim regarding the alleged damage caused by Masonite Woodruf roofing;

or (2) be a subsequent purchaser of such property and have a valid assignment of Claim under the Settlement Agreement;

or (3) own or have formerly owned such property and have made Prior Un-Reimbursed Expenditures as defined by the Settlement Agreement.

Eligible Claimants do not include persons, associations or entities who made claims or filed lawsuits against Defendants other than in the Smith class action, if they were represented by counsel other than Plaintiffs' Class Counsel in the Smith class action, and their claims or lawsuits were resolved by payment based upon the entire square footage of Masonite Woodruf roofing on the structure, full release or judicial action

5. How do I know if I have Woodruf roofing?

Masonite Woodruf roofing is a product composed of pressure-bonded wood fibers, wax, and resins designed to emulate the look of natural cedar roofing. It is made of real wood fibers that are molded in 12" x 48" shingles. This lawsuit does not concern Masonite^Ž products used for interior, siding, wall substrate, plywood or deck sheathing, or for purposes other than exterior roofing. The lawsuit does not concern Masonite^Ž Hardboard Siding and MasoniteOmniWood^Ž Siding or other siding products. If you are filing for Masonite Hardboard Siding, please call 1-800-330-2722 to obtain the appropriate claim form. For Masonite OmniWood Siding, please call 1-800-256-6990

6. What are the terms of the Settlement?

On January 6, 1999, the Court approved the Settlement. The essential terms of the Settlement are

a. Eligible Claimants.

If you qualify as an Eligible Claimant, you may be entitled to recover under the Settlement. To be an Eligible Claimant, you must:

(1) own property in the United States or its Territories on which Woodruf roofing has been incorporated and installed since January 1, 1980, and have not assigned the claim regarding the alleged damage caused by Woodruf;

(2) be a subsequent purchaser of such property and have properly documented assignments determined to be valid under the Settlement; or

(3) own or have formerly owned such property and have made Prior Un-Reimbursed Expenditures as defined by the Settlement.

b. Compensation Formula.

(1) Basic Formula .

The Settlement contains a Compensation Formula, which will be the measure of payments to which an Eligible Claimant is entitled for the damages they have sustained as a result of Woodruf roofing. As agreed by the parties, the Compensation Formula will be arrived at by multiplying the number of square feet of Woodruf roofing determined to have sustained damage within the meaning of the Settlement, by the cost of removal and replacement of the damaged roofing, including all labor and materials, with adjustments for multiple stories.

If more than 20% of the Woodruf roofing on the entire property is determined to be damaged, then the Eligible Claimant shall receive payment under the Compensation Formula for the entire amount of the roof covered with Woodruf roofing on their property

(2) Definition of Damage.

To be entitled to payment under the Settlement, an Eligible Claimant must be determined to have compensable Damage as defined by the Settlement. The Settlement defines Damage as follows: (1) shingle lifting, cupping, warping, or curling in excess of 5/8" over 20% of a shingle surface area when rain has not occurred for two hours; or (2) black shingles, distinguished by a dark grey or black color, or color differences as a result of use of products from different mills or different species, or color variation on separate shingles caused by different surface treatment; or (3) thickness swell on shingle edges in excess of .511"; or (4) cracking and delamination in the areas of shingle grooved or ship lap edges where a feeler gauge ˝" wide and 0.025" thick can be inserted a minimum of ˝" into the crack with moderate hand pressure; or (5) rotting, punkiness, flaking, or deterioration of shingles; or (6) hail damage where the hail has penetrated the surface of the shingle or cracked the shingle; or (7) improperly machined tabs; or (8) softness or sponginess of the shingle which, upon application of moderate thumb pressure, deforms or punches a hole in the shingle.

Damage does not include: (1) intentional, reckless or negligent damage to roofing (unrelated to installation or maintenance); or (2) damage to roofing to the extent resulting from natural disaster including, but not limited to, fire, hurricane, flood, earthquake, earth movement or other similar events (excluding hail)

(3) Causation Exceptions.

An Eligible Claimant with compensable Damage as defined above will be entitled to recovery unless one or more of the Causation Exceptions contained in the Settlement is determined to apply. The Causation Exceptions include damage caused by the following: (1) localized swelling or decompaction caused by debris accumulation, such as pine straw and leaves (scattered leaves or needles will not give rise to this exception); (2) swelling or decompaction caused by roof pitch less than a 4" rise for every 12" of horizontal distance; (3) lifting caused by improper size of fasteners, proper size being a minimum of eleven gauge nails with a 3/8" head, or sixteen gauge staples with a minimum 7/16" crown; and (4) lifting caused by insufficient number of fasteners, meaning one fastener in the ship lap joint, two fasteners 3" to 4" from the vertical edge, and five intermediate fasteners, for a total of eight fasteners.

For a Causation Exception to apply, the condition giving rise to the Exception must be clearly observable to the Independent Inspector without intrusive testing and must be determined to be the sole, independent cause of the damage. The benefit of any doubt will go to the homeowner. In addition, an Eligible Claimant will be compensated under the Compensation Formula for all damage associated with a particular shingle if any part of such damage is determined to be a result of product failure

(4) Limited Age Deduction.

The Settlement also provides for an age deduction based on the number of years the Masonite Woodruf roofing has been installed and incorporated into the structure. For the first five (5) years following installation, there is no deduction or proration under the Compensation Formula. For each year thereafter, there will be a deduction of three percent (3%) per year for Woodruf roofing sold with a 25 year warranty, and five percent (5%) per year for Woodruf roofing sold with a 15 year warranty, with the age deduction capped at fifty percent (50%) based on the Compensation Formula

c. Settlement Claims Program.

(1) Claim Form and Procedures for Damage That Has Not Been Repaired and Product Identification .

To make a claim for damage that has not been repaired, a Class member must be an Eligible Claimant as defined above, and must submit a properly completed Claim Form to the Claims Administrator, along with proof of product identification. Proof of the existence of the Masonite Woodruf roofing on an Eligible Claimant's property may be achieved by submitting to the Claims Administrator: (1) a 6" x 6" sample of Woodruf roofing certified by the Claimant to be from the structure in question; or (2) a prior communication from Masonite that confirms that the roofing is Woodruf; or (3) a check for $100.00 (one hundred dollars), which will be refunded if the Inspector determines the product to be Woodruf; or (4) a photograph of the roof certified by the Claimant to be of the Woodruf roof in question

(2) Inspection and Payment of Claim.

After receipt of a properly completed Claim Form, an Independent Inspector will inspect the property to verify the amount, if any, of compensable Damage. All damage associated with roofing that meets the agreed definitions of Damage shall be compensable unless it is subject to one of the Causation Exceptions identified above. After completion of the inspection, the Independent Inspector will forward his/her report to the Claims Administrator, who will determine the amount of payment based on the information contained in the report of the Independent Inspector, according to the Compensation Formula defined above as applied to the damage compensable under the Settlement

(3) Claim for Un-Reimbursed Expenditures.

Eligible Claimants also are entitled to make claims for Un-Reimbursed Expenditures associated with Masonite Woodruf roofing if they made the repairs (i) prior to January 6, 1999, (ii) between January 6, 1999 and April 1, 2000, if they did so in good faith and with no knowledge of the proposed Settlement or Claims Program established by the Settlement. To make such a claim, the Eligible Claimant must properly complete a Claim for Un-Reimbursed Expenditures and must provide satisfactory proof (1) that the roofing that is the subject of the claim was Masonite Woodruf roofing installed and incorporated on the roof of the Claimant's property; (2) that the roofing was damaged; (3) that the damage that is the subject of the claim was repaired or replaced; and (4) of the costs of any such repair or replacement work. In seeking to satisfy the first and second proof requirements, an Eligible Claimant may submit (i) photographs showing damaged Woodruf roofing; or (ii) contracts, bills, or invoices reflecting repairs to the roofing; or (iii) sworn affidavits from third persons in the business of inspecting or making repairs attesting to the inspection, damage and repairs

(4) Subsequent/Multiple Claims.

You are not limited to making a single claim during the life of the Settlement. If you experience additional compensable damage after an initial claim that was not covered by a previous claim, you may make additional claims in subsequent years during the life of the Settlement. If you have filed three or more previous claims and have not been compensated for any of those claims, you must pay $100 before your claim will be processed

(5) Claims Periods and Deadlines.

The Settlement provides a seven (7) year/ten (10) year claims program. If you own Masonite Woodruf roofing installed and incorporated into a home or other structure between January 1, 1980 and December 31, 1989, you must file your claim(s) under the Seven Year Program by January 6, 2006. If you own Masonite Woodruf roofing installed and incorporated into a home or other structure between January 1, 1990 and January 6, 1999, you have ten years, until January 6, 2009 to file your claim(s)

7. What if I have sold my house?

If you have sold your house, you are eligible to participate in the lawsuit if you previously repaired or replaced damage related to your Woodruf roofing without submitting a claim to Masonite, if you submitted a claim which was not fully paid in accordance with the terms of this Settlement, or if you have a valid assignment of claim from your buyer. Call 1-800-256-6990 to obtain a form. You may also assign your right to take a future claim to the buyer of your home, by advising the buyer of this settlement and making a written assignment of your potential claim

8. What if I already made a warranty claim or signed a release?

If you settled a warranty claim with Masonite and you were not represented by an attorney, you are eligible to file a claim. Under the settlement, you will receive the difference, if any, between what you are entitled to under the settlement and any payment previously made to you by Masonite.

If you were represented by an attorney in making a warranty claim against Masonite and signed a full release, you are not eligible to participate in this claims program

9. Do I need to do anything to participate in the Settlement?

Yes. If you have damage associated with Masonite Woodruf roofing, you will need to complete a Claim Form to begin the processing of your claim. To obtain a Claim Form, please call 1-800-256-6990. You are encouraged to submit your Claim Form or Claim for Un-Reimbursed Expenditures as soon as possible, and must do so before the end of your applicable claims deadline.

If you believe that you have Masonite Woodruf roofing on your home or structure, but have not yet experienced any damage, please retain this notice and the claim form until you experience damage

10. Can I exclude myself from the Settlement?

If you have not previously indicated that you wished to be excluded from Smith v. Masonite , you no longer are able to do so. Your rights are now those of a participating Class Member in the Settlement.

11. How do I make a claim?

If you believe you are an Eligible Claimant, in order to participate in the Settlement, you must make your claims by the applicable deadlines described above, and follow any procedures set by the Court and provide the information requested to support and verify your claim. To start your claims procedure you should complete the claim form and return it.

12. Who represents the Class?

a. Class Representatives.

Plaintiffs H. Quin and Kathryn Smith, Kenneth and Leonor Palmer, and Ronald and Anita Winger, have been designated as Class Representatives by the Court. They have investigated and litigated this action on behalf of the Class for several years. They have provided documents and information in support of Class claims.

b. Class counsel.

In its August 7, 1998 order granting preliminary approval of the Settlement, the Court appointed the following attorneys as Class counsel:

CUNNINGHAM, BOUNDS, YANCE, LEVY, RAM & OLSON, LLP

CROWDER & BROWN Michael F. Ram

Richard T. Dorman 639 Front Street, 4th Floor

John T. Crowder San Francisco, CA 94111-1913

Post Office Box 66705 Telephone: (415) 433-4949

Mobile, Alabama 36660

Telephone: (251) 471-6191 DOFFERMYRE, SHIELDS, CANFIELD,

KNOWLES & DEVINE

HAGENS & BERMAN Ralph I. Knowles, Jr.

Steve W. Berman Everette L. Doffermyre

Clyde A. Platt, Jr. 1600 The Peachtree

1301 Fifth Avenue, Suite 2929 1355 Peachtree Street

Seattle, Washington 98101 Atlanta, Georgia 30309

Telephone: (206) 623-7292 Telephone: (404) 881-8900

LIEFF, CABRASER, HEIMANN

& BERNSTEIN, LLP

Elizabeth J. Cabraser

Jonathan D. Selbin

Fabrice N. Vincent

Embarcadero Center West

275 Battery Street, 30th Floor

San Francisco, California 94111-3339

Telephone: (415) 956-1000

13. Who pays the attorneys' fees and costs?

No Class Member's recovery will be reduced to pay attorneys' fees. In addition to payment to Class members, Defendants have agreed to pay Class counsels' attorneys' fees in an amount equivalent to 13% of the actual claims paid during the life of the Settlement. Of this amount, Defendants have agreed to pay Class counsel an initial, advance payment of attorneys' fees of $1.7 million. Defendants also have agreed to pay Class counsel's costs incurred in this litigation, in an amount not to exceed $75,000.00. These agreements on fees and costs are subject to Court approval. Unlike many settlements, this Settlement does not deduct attorneys' fees or costs from the class benefit, and Class members have no responsibility to pay any hourly or contingent fees to Class counsel.

14. Where do I get additional information?

The foregoing is only a summary of the circumstances surrounding the litigation, the claims asserted, the Settlement, and related matters. You may seek the advice and guidance of your own private attorney, at your own expense, if you desire. For more detailed information, you may review the pleadings, records, and other papers on file in this litigation, which may be inspected during regular business hours at Clerk's Office, Circuit Court of Mobile County, Alabama. The address of the Court is: Circuit Court, 205 Government Street, Mobile, Alabama, 36602. Copies of the complaint, the Settlement and the papers filed in support of approval of the Settlement are available upon written request to Class counsel.

Current information is available by calling 1-800-256-6990. This information is available on the Internet at: http://www.masoniteclaims.com. If you wish to communicate with Class counsel identified above, you may do so by writing to (1) Class Counsel, c/o 275 Battery Street, 30th Floor, San Francisco, California 94111-3339, or (2) any of the Class counsel listed in Section 12.