Investigation timeline:

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1 timeline: Complaint Draft CPIC /28/09 Christina Bishop Michelle Kutzer David Snyder No Draft on record 02/06/09 On Feb 18 in a bar with other Citizens' employees these two individuals were very intoxicated and removed their bras in front of the employees. Ms. Bishop showed her breasts to people at the table while removing her bra and Ms. Kutzer danced on the top of the bar swinging her bra over her head. This was after a meeting in Tampa where many of the employees went out to dance. In the same night, Ms. Bishop became hostile and began threatening a person who played a minor joke on her. She screamed that this person was "so fired" and then followed him out of the bar onto the street continuing to scream at him. The same night, she slammed the door on her hotel room so hard that she woke people up on the floor where she was staying. Two of her employees tried to keep her quiet and calm her down. People are afraid to report this for fear of retaliation, but many are very upset and feel that the behavior should not be ignored Eric Miller / Joyce Bellows This t is a companion to the t indexed as CPIC Both ts refer to the same "gathering" of Human Resources Dept. employees at an after-hours entertainment facility/nightclub that was in conjunction with a Human Resources conference or meeting. This matter has been referred to external counsel for review. The law firm of Brown, Garganese, Weiss, and D'Agresta, P.A. was appointed by the then Chief of Internal Audit to conduct a full into the issues raised. Substantiated Christina Bishop - Written management Michelle Kutzer - No David Snyder - verbal management It was OCIs opinion in the draft report that the sanction given by the determination committee were light given the circumstances and they were of the opinion that as these were HR staff and the 6 member determination committee was staffed by mainly HR staff. As this matter was investigated twice before and sanction was given the Chief of Internal Audit reached the conclusion that this issue was resolved. This matter is however indicative of bad practices from the past hence the conclusion in the final report that: "Citizens does not currently have formally documented disciplinary policies and procedures. As a result, discipline is managed inconsistently across the organization." Appropriate corrective action has been taken, the determination committee was disbanded in February 2012 and formal disciplinary procedures are being developed 1

2 Draft It was OCIs opinion that given the positions held by Ms Murphy during her tenure as well as the fact that she identified herself as an attorney that she most probably acted as an attorney in Florida. OCI further felt that the Sniffen Law firm did not conduct a full as they only focused on the last two roles Ms Murphy held with Citizens. This matter was a concern to OIA and the President and upon being notified of this possibility in July 2012 the Chief of Internal Audit requested a full. As a result OCI with the support of external counsel conducted interviews and performed detailed file and reviews. CPIC /5/10 Susanne Murphy No Draft on record 11/01/10 Illegal representation as lawyer Eric Miller The law firm Sniffen & Spellman, P.A was appointed to investigate the allegation. Unsubstantiated Upon completion of the the Director OCI and Chief of Internal Audit assessed the result of the and concluded that there was no factual evidence found which confirmed that Ms Murphy was at a time in her career with Citizens acting as an attorney. OCI did not find any documentary evidence which even hinted that Ms Murphy was giving legal advice in her capacity. It was further clear that there is a distinction between the roles of General Counsel and Corporate Counsel and as Corporate Counsel Ms Murphy could fulfill her role without acting as an attorney. Given this the Chief of Internal Audit together with the Director of OCI concluded that the allegation was unsubstantiated. In respect of the Sniffen it was concluded that the attorney used his own judgment, he was not guided by the organization and the result of the Sniffen was fair given the fact that no further evidence of wrongful practice could be found. 2

3 Draft In the OCI report the result supported the perception that in the first instance by not doing an the matter of sexual harassment was not thoroughly addressed. Secondly the payment to Palumbo was excessive and could have been in support of the allegation that Ms Murphy pay-off her enemies. This matter was a concern to OIA and the President and upon being notified of this possibility in July 2012 the Chief of Internal Audit requested a full. As a result OCI with the support of external counsel conducted interviews and performed detailed file and reviews. PAUL PALUMBO 10/14/10 Paul Palumbo No report issued No report issued raised in t CPIC : "The people who are paid to leave by severance pay. Nice guy Paul Palumbo took hit for Murphy emergency decision with the inspection purchase f... up" The law firm Sniffen & Spellman, P.A was appointed to investigate the allegation. This was cancelled upon advice from Sniffen after the resignation of Palumbo. No case registered No formal sexual harassment t was raised or documented against Mr. Palumbo. Disciplinary action was on the other hand in progress against Mr. Palumbo for underperformance. The decision to pay severance of 6 months however remained questionable. The revealed that Ms Murphy was not part of the negotiation with Mr. Palumbo. The then President, Mr. Wallace, was the decision maker and he approved the payment. It was our opinion that Mr. Wallace in his capacity as President had the authority to authorize the severance. Citizens however does not currently have a written policy regarding severance or payments other than accrued benefits to separated employees. As a result, the agreement and settlement of separation amounts are managed inconsistently across the organization. Upon questioning this practice it was found that smaller organizations generally do not have formal severance policies and decisions are case dependant. It is however felt that Citizens as a quasi governmental organization should have clear rules in place and a severance policy should be documented. 3

4 Draft CPIC /5/11 Joe Bouthillier 01/11/12 09/18/12 This issue involves Joe Bouthillier and his drinking around staff under him on company trips. Joe was so drunk at a recent Key West trip with staff, he was dancing with them while also bragging about being so drunk he was late to the agent round table meeting the very next day. He was also using the "F" to staff. Several of us have worked with Joe for years. He is known for drinking way too much. Many of the staff feel uncomfortable with him on trips. Dancing and getting physical with staff on business trips and cursing is inappropriate. Over the past few weeks he has also made comments about Yong and Debbie not liking him which is his management... I am very disappointed with the lack of leadership and example Joe has displayed to us. For me the trips have put me over the edge which is why I am now reporting this. Many of us fear to report these things because of Joe's Director title. I was shocked for him to almost brag about being late to the agent round table meeting, which was a company paid for trip. all due to his inappropriate behavior and lack to show a good example to us. This type of activity is nothing new for Joe. He is known to have taken many of us out over the past few years, he makes inappropriate comments. He is a married man, and this frankly should not be tolerated. I will also be sending a letter to our CEO as Joe has gone over board at this point. Staff not just from this recent company trip, but past trips have made comments as to how uncomfortable they feel with his actions and verbiage. Selisa Daniels The outside counsel Quintairos, Prieto, Wood & Boyer, PA was requested to investigate the allegation Unsubstantiated In its draft report OCI created the impression that the original conducted by outside counsel Quintairos, Prieto, Wood & Boyer, PA was inappropriately influenced by the general counsel's office. Furthermore it appeared as if Mr. Bouthillier received preferential treatment and was still considered for a role within Citizens The OIA and President requested completion of the OCI into the Bouthillier case OCI confirmed that they completed the and found the allegation against Mr. Bouthillier to be unsubstantiated. It should be noted that it took OCI in excess of 8 moths to complete the second leg of the into the Bouthillier case. As far as the mismanagement of the case by the office of General counsel is concerned OCI, in the detail, found no evidence of any wrongdoing on the part of General counsel or its staff. 4

5 Draft CPIC /30/12 General counsel, Ms Murphy and HR Management 7/0/2012 General Counsel, Murphy, members of Human Resources and Legal mishandle s, discipline, and Citizens funds [sic] External law firms are [sic] hired to investigate select allegations. The paid firms are given direction and limitations on who and what to investigate and how to report. The information provided and reported is misrepresentated [sic] as the true. The reports are false. When they are afraid they can't protect certain employees or are afraid an employee will report these mishandlings, they pay them $$$$$ to keep this quiet and ask them to resign. This is all keep [sic] hush hush and is not reported as statute requires. There are many examples of these s involving allegations of Murphy, human resources, Murphy's current and former directors, vps [sic], and their friends. John Fox / Joe Martins conducted by OCI upon request and on behalf of OIA Unsubstantiated 08/03/12 - Director OCI present draft report to President. Chief of IA present Director OCI, Chief of IA meet with Chairman Lacasa and President Gilway. Following presentation of draft report and allegations raised by OCI Chairman Lacasa requested that a full be conducted. 08/17/12 - Results from full presented and discussed with President Gilway and Chairman Lacasa. Chief of IA, Director OCI and Partner from Shumaker, Loop & Kendrick, LLP. 08/23/12 - results from discussed with CFO Binnun, General Counsel Sumner and Chief of Administration Murphy. 08/31/12 - report presented to President Gilway, Chairman Lacasa and members of the Audit Committee 5