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Revenue: 42,000,000 Size: 543GB | Berg / Crushing Corporation of America: Demolition on Federal Money --- PROLOGUE In our possession are internal documents of Berg Demo Holdings LLC , dated 2025–2026. Consolidated financial statements for 2026 — P&L, balance sheet, WIP, ratio analysis. Distribution list: owners, CFO, representatives of Canadian investor Alaris Equity Partners, two independent board members. Related party register — Berg Related Party Spreadsheet : monthly payments to four affiliated entities from January 2025 through May 2026. Daily cash sheets for April 2026. Bank transfer confirmations: $1M, $1.5M, $2.71M — within the group over two months. A log of 264 contract change entries (PCO Log): individual change order amounts reach $1,808,074. More than 50 executed subcontracts and agreements — subcontractor agreements, equipment rental contracts, and general contractor agreements from 2024–2025. Among them: a direct government contract with the Maryland Stadium Authority under the Project C.O.R.E. program, heavy equipment rental from Carter Site Services for Key Bridge debris work, master subcontracts with four asbestos subcontractors, an executed subcontract for the Homestead Wakefield school — the very one for which Berg is now litigating in Harford County. Internal personnel evaluations: peer reviews of management on the KPA platform. The President evaluates subordinates, subordinates evaluate the President, the COO evaluates his direct reports. Documents include written comments and self-assessments with personal signatures. Insurance documents for 2026–2027: fleet, Workers' Compensation, General Liability, D&O. A lawsuit filed in the Circuit Court of Harford County from April 2026. Monthly covenant compliance certificates, signed by CFO Scott Luman and sent to Alaris. In this article, you will only be able to review a portion of the data we have chosen to disclose. The rest you will be able to download and study independently after the full archive is published. --- Part I. Who Are Berg / Crushing The group operates under several legal names: | Legal Entity | Type | Role | |--------------|------|------| | Berg Demo Holdings, LLC | Delaware LLC | Top-level holding — investment partner Alaris | | Crushing Corporation of America | Maryland corp. | Primary operating company (CCA) | | B.O.W., Inc. | Maryland corp. | Affiliated entity, same address | | Berg Demo Group LLC | Delaware LLC | Demolition division | | Crushing LLC | LLC | Subsidiary, PNC account | | TBG (The Berg Group) | — | Operating holding, main PNC account | Berg Demo Holdings, LLC — the legal entity that signed the Company Agreement with Alaris on February 5, 2025 . It is Holdings that reports monthly to Alaris via Exhibit J (Compliance Certificate) and Exhibit L (Initial Monthly Questionnaire). The Compliance Certificate for May 2026 was signed on June 23, 2026 , and certifies: no Event of Default, financial statements for the period are accurate. The company underwent a name change. It appears in documents as The Berg Corporation . In 2025–2026 — already Berg Demo Group LLC . The certificate in the actual April 2026 lawsuit demonstrates this: attorneys ask how to correctly identify the plaintiff if "the contract was signed by The Berg Corporation" — under this name the company operated on the disputed project. Key People: | Name | Role | |------|------| | David J. Berg | CEO — Crushing Corporation of America and B.O.W., Inc. | | Austin Berg | Management — Berg Demo (son of David Berg) | | Zach Gilden | President — Berg Demo Group LLC | | Ralph (Scott) Luman | CFO — signs bank transfers, contracts, and monthly certificates for Alaris | | Howard Shearer | CFO — signed customer notification of ownership change (January 2025) | | Durant Walters | President, The Berg Corporation — signed subcontracts and government contracts under this name through January 2025 | | Brandon Bonanno | COO, The Berg Corporation — initials BB in legal documents; reports to Zachary Gilden | | Joanita Lubega | AP Contact, AP@BergDemo.com, tel. 410-233-5525 ext. 208 | David J. Berg signed the PNC Bank credit agreement on behalf of both companies — Crushing Corporation of America and B.O.W., Inc. — simultaneously, as CEO of each. The Berg Demo Holdings LLC financial statements for May 2026 are distributed to a list of 10 recipients: Berg Demo (David Berg, Austin Berg, Zachary Gilden, Howard Shearer, Scott Luman), Alaris Equity (Gregg Delcourt, Connor Lesperance, Dan Maceachen), and Board Members (Bill Childs, Frank Settleman). Federal Tax ID Berg Demo Group LLC: 52-2135644 Phone: 410-233-5525 --- Part II. What They Demolish Completed projects — from the internal register as of April 1, 2026: | Project | Address | Client / GC | Contract | |---------|---------|-------------|----------| | Landmark Mall | 5801 Duke Street, Alexandria, VA | Landmark Land Holding / Clark Construction | $16,803,636 | | Perkins Homes Ph. 3–5 | 1401 E Pratt St, Baltimore, MD | Housing Authority of Baltimore City / Gilbane | $14,288,658 | | Aberdeen Proving Ground | Aberdeen, MD | Dept. of the Army / US Army Corps of Engineers / Kemron | $7,434,033 | | Air & Space Museum | 600 Independence Ave SW, Washington, DC | Smithsonian Institution / Clark Construction | $6,580,525 | | Johns Hopkins Reed Hall | 624 N Broadway, Baltimore, MD | Johns Hopkins University / Gilbane | $6,415,636 | | Pimlico Race Course | Baltimore, MD | Clark Construction Group | $6,528,779 | | Total (top 6) | | | ~$58,051,267 | Work scope by project: - Pimlico Race Course: demolition of the historic Baltimore racetrack — home of the Preakness Stakes. Completed 2025–2026. Gross profit: $2,850,937 (43.7% margin). - Landmark Mall: "Asbestos Abatement, Interior Gut, Structural Separation and Full Raze" - Perkins Homes: "Complete Demolition of 35 Apartment Buildings" - Aberdeen Proving Ground: "Asbestos abatement and full raze of 60 buildings" - Air & Space Museum: "Abate, Stripout, Selective Structural of Active Museum" - Johns Hopkins Reed Hall: "Abatement, Gut and Wreck of Former Dormitories" Asbestos abatement is present in most projects — including on the active grounds of the federal Smithsonian museum, a U.S. Army installation, and Baltimore housing stock. Additionally, Berg has a direct government contract with the Maryland Stadium Authority (MSA) under Project C.O.R.E. (Creating Opportunities for Renewal and Enterprise, "DD 016") — a program for demolishing vacant housing stock, funded by the Maryland Department of Housing and Community Development. The contract was signed on June 4, 2024 , signatory for MSA — Executive Director Michael J. Frenz (mfrenz@mdstad.com), for Berg — Durant Walters; legal review — Amy K. Mataban, Assistant Attorney General . Scope includes not only asbestos but also " disposal of lead-based paint from properties; the removal and disposal of polychlorinated biphenyls (PCBs), mercury containing waste materials and other universal or regulated wastes. " A critically important clause in the MSA contract — Article 21 : > "The Contractor shall not sign, approve, or execute any manifests, certificates, other documents required by the Environmental Protection Agency, or any state, for transport and deposit of materials deemed hazardous or certified non-hazardous." Berg, under a government contract, is not authorized to sign EPA documents for the transport and disposal of hazardous materials. This means that the party legally responsible for transporting hazardous waste from Berg's sites is someone else — a licensed transporter signing the manifest. It is precisely in this role that the "related party" HAWKINS MSNG appears, having received $7,094,615 over 17 months (see Part X). --- Part III. Financial Picture 2025 Results Data from the Covenant Comparison — a document showing compliance with bank covenants. | Metric | Amount | |--------|--------| | Net Income | $6,707,000 | | EBITDA | $8,532,000 | | Alaris Preferred Distributions | $2,165,000 | | Tax Distributions to Owners | $960,000 | | FCCR (Fixed Charge Coverage Ratio) | 2.48x | Verbatim from the document: > "FCCR (min of 1.20x) 2.48x / Result On-Side" > "Distributions as % of net income 32.3% / Threshold 50.0% / Result On-Side" > "Excess Free Cash Flow (above 1.20x) $3,743" Current Data: TTM and May 2026 Berg Demo Holdings LLC consolidated financial statements for May 2026 (issued June 18, 2026) cover both the current year and trailing 12 months (TTM). Revenue and Profit: | Period | Revenue | Gross Profit | GP% | Net Income | EBITDA | |--------|---------|--------------|-----|------------|--------| | May 2026 (month) | $4,977,676 | $1,657,176 | 33.3% | $731,832 | $883,786 | | YTD (Jan–May 2026) | $27,124,574 | $6,449,235 | 23.8% | $1,984,813 | $2,790,261 | | TTM (Jun 2025 – May 2026) | $61,733,829 | $11,854,639 | 19.2% | $5,128,622 | $7,186,538 | Comparison with prior periods on gross margin — historical trend: - 2023: 32.70% - 2024: 27.20% - 2025: 28.27% - TTM May 2026: 19.20% Margin compression of more than 13 percentage points over three years — alongside revenue growth from $45M to $61.7M. Trucking & Disposal for the TTM amounted to $16,684,570 (27% of revenue), while the budget had assumed 21%. Scrap Revenue in May 2026 was $1,345,143 — double the same month in 2025 ($649,477). For the first five months of 2026: $2,763,054 in ferrous and non-ferrous metals. Balance Sheet as of May 31, 2026 | Item | May 2026 | May 2025 | Change | |------|----------|----------|--------| | Cash | $6,178,876 | $2,889,790 | +114% | | Accounts Receivable | $13,223,199 | $11,559,835 | +14% | | Underbillings (Costs in Excess) | $2,850,481 | — | n/a | | Total Current Assets | $24,701,715 | $17,992,168 | +37% | | Fixed Assets (net) | $6,309,576 | $4,580,629 | +38% | | Total Assets | $32,020,021 | $23,671,719 | +35% | | Accounts Payable | $6,510,672 | $6,433,330 | +1% | | Overbillings (Billings in Excess) | $3,212,298 | — | n/a | | Distributions Payable | $885,000 | $885,000 | — | | Long-Term Liabilities (Notes Payable) | $3,994,070 | $1,951,414 | +105% | | Total Liabilities | $16,713,353 | $11,022,646 | +52% | | Equity | $15,306,668 | $12,649,073 | +21% | Notes Payable grew from $1.95M to $3.99M — the company is increasing its equipment debt load. Debt-to-Equity: 1.09x (versus 0.86x a year ago). Retained earnings on the balance sheet grew: $16,679,930 (Prev Retained Earnings) — carryover from FY2025. Current distributions: | Item | Amount | |------|--------| | Owners Distribution (Berg + partners) | ($2,852,298) — accumulated | | Owners Distribution — Alaris Preferred | ($3,235,630) — accumulated since investment | Alaris had received a cumulative $3,235,630 in preferred distributions by May 2026 — this is the amount over 15 months since the investment (February 2025). Forecast for end of 2026: ~$3.9M at a rate of $180,000–270,000 per month. FCCR Dynamics The company tracks FCCR (Fixed Charge Coverage Ratio) annually. Data by year (PNC Bank methodology, minimum 1.25x): | Year | FCCR | |------|------| | 2023 | 4.67x | | 2024 | 0.77x (covenant breach) | | 2025 | 2.72x | | TTM May 2026 | 1.72x | In 2024, FCCR dropped to 0.77x — below the bank threshold of 1.25x. In 2025 it returned to 2.72x. By May 2026, the trailing metric had declined again to 1.72x. Alaris uses a different FCCR methodology with a lower threshold of 1.20x — by that measure, the 2025 figure was 2.48x ( "FCCR (min of 1.20x) 2.48x / Result On-Side" ). One company — two different FCCRs for the same year, for two different creditors. Alaris — Presence in Management Alaris Equity Partners (TSX: AD) — a Canadian permanent capital company. Invested in Berg Demo Holdings LLC on February 5, 2025. Structure data: - Preferred Equity (Alaris): $17,150,000 - Common Equity (Alaris): $3,850,000 From the 2026–2027 insurance proposal, Subjectivities section: > "Executive package — confirm Alaris Equity Partners has board representation to remove shareholder exclusion" Three Alaris representatives — Gregg Delcourt, Connor Lesperance, Dan Maceachen — receive monthly financial statements alongside independent board members Bill Childs and Frank Settleman . Annual board fees: $20,834/month ($250,000/year), reflected in the P&L's G&A under "Consulting — Board Fees." --- Part IV. President at 58%: Internal Performance Reviews April 2025. Two months after closing the Alaris deal, Berg conducted annual employee performance reviews on the KPA platform. Documents contain peer evaluations across seven categories, written comments, and management self-assessments. The company's President — Durant Walters , Title: President, The Berg Corporation. His self-assessment was recorded on April 25, 2025. Under the KPA system, Walters tracks daily "Key Performance Areas": project status walkthroughs, open PCO monitoring, revenue forecasts — including a line item for " Caton Avenue " alongside ferrous scrap, non-ferrous scrap, and metal recycling. Subordinates evaluated Walters as follows: | Reviewer Group | Average Score | |----------------|---------------| | Project Managers | 81% | | General Superintendents | 56% | | CFO (Howard Shearer) | 52% | | Director of Safety (Chris Brophy) | 57% | | VP of Training (Chris Trendell) | 43% | | Overall Average | 58% | CFO Howard Shearer , 52%, verbatim: > "Durant is a smart person. Understands contract language and scope of work. I do not believe he handles himself as a President but more as a Project Executive. I truly believe that role would be fit for him because of his skill set and background. At times, I think his sarcasm is unprofessional in certain settings. There are times that I am not following what he is saying and he makes you feel like an idiot with his sarcasm. I do not believe he is strong enough to be the top leader of our organization." Shearer marked "Needs Improvement" under "Exhibits professionalism/courtesy" — meaning the CFO considers the President's behavior unprofessional. One General Superintendent (anonymous), 54%: > "Unfortunately he's more fit to be a project manager. Since taking over the PM role with Joe Fluer it's obvious where he needs to be. Only my opinion." Chris Trendell , VP of Training and Employee Development, 43%: > "I have very little interaction with the President on a daily or weekly basis. We used to have a once a week meeting but it died on the vine as there was never any positive outcome in any of the fields regarding the nature of our line of work." In his self-assessment, Walters writes under "What needs to change — Employee Retention": > "Stop the broadcasting of negativity from Chris T., Tracy M. and others." Chris T. — that same Chris Trendell, VP, who gave him 43%. Tracy M. — Tracy Morgan, a direct report to the COO. On the question "whom are you grooming as a replacement": Unknown . On "what next position do you want": N/A . --- The Succession Tender From below: Brandon Bonanno, COO. He was evaluated by four direct reports — average: 66.1% . Tracy Morgan (Shop Manager): "Brandon needs to be able to make decisions on his own." Chris Brophy (Director of Safety): "I think both he and Berg would benefit from giving him more autonomy in decision making regarding personnel." On March 31, 2025, Bonanno sent his subordinate reviews not to Durant Walters, but to Zachary Gilden — with the note: "Zach – Below are my comments/initial thoughts for my reviews. I welcome your thoughts/input." This reveals the real hierarchy: the COO reports to the President of Berg Demo Group LLC, not to the President of The Berg Corporation. From Bonanno's review of field staff: "Field personnel are learning to call Brandon instead of Zach when they need issues solved." Zach — the former first call for the field. Confirmed roles from the April 2025 performance reviews: | Name | Title | |------|-------| | Brandon Bonanno | COO (bbonanno@bergdemo.com) | | Scott Anderson | Chief of Estimating and Business Development | | Chris Brophy | Director of Safety | | Brent Walker | Sr Project Manager | | Joe Fluehr | Estimator / Project Manager | | Adam Trendell | General Superintendent | | Rick Maska | General Superintendent | | Tracy Morgan | Shop Manager | | Nick Huppman | Inventory and Operations Manager | The Trendell Family Three individuals with the same surname work at the same company: | Name | Title | President's Rating | |------|-------|-------------------| | Chris Trendell | VP of Training and Employee Development | 81% | | Adam Trendell | General Superintendent | not rated by President | | Matt Trendell | Assistant Project Manager | 67% | Matt Trendell on his own position: "PM ish." On whom he is grooming as a successor: "No One." From President → Matt (67%) review: > "Often, Matt is argumentative and pushes back when given assignments. Matt requires constant reminding to get his assignments completed and his work requires detailed quality control to ensure accuracy." Chris Trendell on desired next position: "PRESIDENT OF TRAINING AND EMPLOYEE DEVELOPMENT." Grooming as replacement for his VP role: Adam Trendell and Rick Maska. Brent Walker: 43% and "Our Weakest Attribute as a Company" Sr Project Manager Brent Walker received 43% from the President — out of 10 KPIs, eight were rated "Needs Improvement (1)." Verbatim on specific projects as of March 31, 2025: > "Status sheets are not being updated, despite multiple requests. (Job not touched as of 3/31/25: 25-009 255 Rockville, 25-008 Top Golf, 25-006 13775 McLearen, 25-002 Montgomery Center)" Walker in his own self-assessment — on customer service: > "We can have an open conversation on this, and document as needed. This is our weakest attribute as a company." Under Productivity and Employee Retention, he repeated the same point three times: "Hire appropriate supervision." On the profitability of some projects — verbatim: > "For projects that have insufficient estimates/budgets or unrealistic schedule commitments I have had to focus the majority of my efforts to minimize losses. Profitability has unfortunately not been an option." On staffing: "We do not have the appropriate supervision to staff all of our projects." --- Caton Avenue: A Yard With a Manager COO Brandon Bonanno in his review of Adam Trendell (General Superintendent), April 2025: > "Better management of the daily activities and organization of Caton Ave" > "More effort on selling material from Caton Ave" Director of Safety Chris Brophy — in his own self-assessment, April 2025: > "Have the Caton Ave. manager reach out to smaller local contractors (home builders and smaller site work companies) to sell material consistently." Bonanno to Nick Huppman (Inventory and Operations Manager): > "Needs to be more aggressive in the selling of the recycled material at Caton Ave and clay from Hawkins" Caton Avenue — a physical facility in Baltimore, managed by Adam Trendell. Function: selling recycled materials from demolition projects — scrap metal, recycled concrete, clay. Hawkins MSNG, the largest "related party" ($7.09M over 17 months), appears in the same context as Caton Ave as a buyer/intermediary in selling excavated clay. In the Alaris register, CATON AVE is listed as receiving a fixed payment of $10,300/month. In President Durant Walters' KPA, "Caton Avenue" appears as a separate line item of monthly revenue, alongside ferrous and non-ferrous scrap. What the Performance Reviews Say About the Company Overall Several employees independently, in separate self-assessments, identified the same institutional problems. Bonus system. Chris Brophy, April 2025: "The establishment of a transparent and achievable bonus structure would also be beneficial for retention." Brent Walker: "Have scheduled reviews with employees to discuss their work and raises." Matt Trendell repeated the same thing verbatim. No formal transparent bonus system exists at Berg. Retirement benefits. Brophy: "Offer improved benefits related to a true 401K program (roth and traditional) vs a SIMPLE IRA and potentially an HSA offering due to offering high deductible plans primarily. Most of our competitors already have these offerings that are similar in size, so it becomes important to level the playing field." Berg offers employees a SIMPLE IRA — the most basic retirement vehicle — alongside a high-deductible health plan. Career development. Brent Walker (Sr PM) on successor: "N/A. We do not have a development program and there is no one in the company that has expressed interest in being a PM to my knowledge." Matt Trendell (APM) on successor: "No One." Durant Walters (President) on successor: "Unknown." Three levels of management — President, Senior PM, and APM — cannot name a person who would take their place. --- Berg Equipment on the Key Bridge Debris April 24, 2024 — 29 days after the Francis Scott Key Bridge collapse — Berg entered into a heavy equipment rental agreement with Carter Site Services, Inc. for the KEY BRIDGE project: | Machine | Model | Attachment | Value | Rent/28 days | Mobilization | |---------|-------|------------|-------|--------------|--------------| | Excavator | Komatsu PC650LC-11 (SN: 80012) | Genesis 995R XT shear (SN: 9951037) | $950,000 | $93,080 | $48,000 | | Excavator | Komatsu PC800LC-8 (SN: 55003) | Labounty MSD7500R shear (SN: 675012) | $850,000 | $115,830 | $90,500 | | Total | | | $1,800,000 | $208,910/mo | $138,500 | Hydraulic shear — equipment used for cutting steel structures: precisely the type of equipment used in dismantling fragments of the collapsed steel bridge. Berg owns the equipment; Carter Site Services is the renter-operator. Fuel is Carter's responsibility. Maintenance is included in the rate (8 hours for every 40 hours of operation). --- Part V. Bank Accounts and Transfers 2025–2026 Bank: PNC Bank, National Association , 1 East Pratt Street, Baltimore, MD 21202. ABA Wire: 031000053 | ABA ACH: 054000030 | SWIFT: PNCCUS33 Group Accounts (PNC confirmation letters, May 2026): | Last 4 Digits | Account Name | Full Account | |---------------|--------------|--------------| | 2887 | Berg Demo Group LLC — Healthcare Account | 5557262887 | | 4366 | Crushing LLC | 5562204366 | | 7768 | (not disclosed) | 5501407768 | | 7776 | Operating Checking TBG | 5501407776 | Cash Flow: April–May 2026 Daily Cash Sheet — daily balance register for two accounts for April 2026. Account 7776 (TBG Operating): - March 31, 2026: opening balance $5,441,716.63 - April 1: transfer to Crushing $1,000,000 + incoming EFT $92,582 + deposits $58,553 - April 6: additional transfer to Crushing $1,500,000 - Balance at May 2026 opening: Book $3,855,832.42 / Bank $3,897,518.87 Account 4366 (Crushing Operating): - Received $1,000,000 — April 1; $1,500,000 — April 6 - Payroll (PR DD) paid April 2: $269,019.47 - AP checks paid April 2: $81,618.86 - Outgoing wire sent April 6: $1,233,050 - End-of-April balance: Book $2,267.06 / Bank $751,562.01 The difference between bank balance ($751K) and book balance ($2,267) — $749,295 in issued but uncleared checks. CCA operates with virtually no cash cushion: after each payroll cycle, the account resets to near zero. May 27, 2026, 5:18 PM ET — $2,710,000 transfer: > Transfer Name: "Xfer BDtoCR" > From: 5501407776 [OPERATING CHECKING TBG] > To: 5562204366 [CRUSHING LLC] > Amount: $2,710,000.00 / Frequency: One Time Only / Status: Confirmed > Trace Id: 20260513766365 A one-time transfer of $2.71 million from the TBG holding operating account to the Crushing LLC account. The largest documented inter-entity transfer. Likely — funding for a specific project or operational coverage. April 20, 2026, 3:26 PM EDT — $3,061 transfer to DJNA Enterprises: > Account: 5501407776 / Type: Book Transfer / Beneficiary: DJNA Enterprises / Amount: 3,061.00 USD / Status: Approved / Approved By: Scott Luman — 04/20/2026 03:26 PM EDT DJNA Enterprises — does not appear in the related party register filed with Alaris. CFO Scott Luman personally authorized the transfer. Equipment Credit Line (March 2025): Crushing Corporation of America and B.O.W., Inc. entered into an Amended and Restated Loan Agreement with PNC Bank dated March 7, 2025 — a credit line for equipment and vehicle purchases: limit $1,000,000 , term loans up to 7 years. David J. Berg signed the agreement as CEO of both companies. Section 5.7 directly restricts shareholder distributions: additional distributions beyond tax distributions — no more than 50% of the prior year's net income in the absence of an Event of Default. --- Part VI. Lawsuit Against the Insurer: $266,162.88 for a Demolished School Circuit Court for Harford County, Maryland. Berg Demo Group LLC vs. Great Midwest Insurance Company. Filed April 24, 2026. Project: Homestead Wakefield Elementary School Replacement , 900 South Main Street, Belair, Harford County, Maryland. Owner — Board of Education of Harford County . General Contractor — Locust Lane Farms, Inc. General contractor's insurer (payment bond): Great Midwest Insurance Company , Texas corp., 800 Gessner, Suite 600, Houston, TX 77024. Berg performed demolition and asbestos abatement on the new school construction project in Harford County. The subcontract between Berg and Locust Lane Farms, Inc. (513 Commerce Drive, Upper Marlboro, MD 20774) was signed on April 5, 2023 . For Locust Lane, signed by Steve Orange, VP of Estimating/Project Management . For Berg — Durant Walters, President. Total Subcontract Amount: $841,837.00 (Base Bid $825,000 + Bond $16,837). Client — Harford County Public Schools . Scope: asbestos abatement of both school buildings and full demolition to the foundation slab. Under the contract, Berg also assumed MBE participation: a minimum of $206,250 — Bull Dog Trucking (minority business enterprise subcontractor carrier). The interest clause for late payment (Section 15.2) in the Berg—Locust Lane contract is marked: "Not applicable." Berg in its complaint seeks interest recovery — but under the contract, that right is excluded. After three demand letters (January 23, February 26, March 3, 2026 — by certified mail), Berg filed suit against Great Midwest as the holder of Locust Lane's surety bond. Legal basis: Maryland Little Miller Act (Md. Code, Cts. & Jud. Proc. § 17-101 et seq.) Claim amount: $266,162.88 — 31.6% of the total subcontract, plus interest, costs, and attorney fees. Verbatim from the complaint: > "An unpaid balance of $266,162.88 remains due and owing from Locust Lane to Berg. Berg is due $266,162.88 for the work provided to the Project." Plaintiff's counsel: Huddles Jones Sorteberg & Campbell, P.C. , 10211 Wincopin Circle, Suite 200, Columbia, MD 21044. Kenneth K. Sorteberg and Nicole L. Campbell. The complaint document contains reviewer notes from BB (Brandon Bonanno) and SL (Scott Luman — CFO): > "We changed our name since this project was completed. How do we need to state this in the complaint as the contract was signed by The Berg Corporation?" At the time the work was performed, the company was named The Berg Corporation — under this name the subcontract with Locust Lane was signed. --- Part VII. Who Actually Performs the Work Asbestos Abatement Outsourced Berg is hired by general contractors as a demolition and asbestos abatement subcontractor. The asbestos work itself — removing floor tile, demolishing insulation, decontaminating rooms — is subcontracted further down the chain. Key performer: Progress Environmental Inc. Capitol Heights, Maryland 20743. Two company addresses appear in documents: 547 Ritchie Road (Neelsville MS subcontract) and 8472 Walker Mill Road (JHH Reed Hall subcontract). The company specializes in asbestos abatement. For Progress Environmental, subcontracts are signed by Tim Shears, President (tshears@progress-environmental.com). Second signatory — Colleen Mitchell (cmitchell@progress-environmental.com). Witness on paper documents — Lillian Mitchell . Subcontract for Johns Hopkins Reed Hall demolition (24-009): asbestos abatement of three buildings — Cooley Center, Reed Hall East, Reed Hall West. Contract amount: $326,096.25 . Scope includes 263 windows (×$250 = $65,750), 9,870 SF drywall ($4.75/SF = $46,882), over 2,000 LF of pipe insulation ($12–25/LF), 400 SF fire-proofing ($25/SF = $10,000). Detailed price list from the contract: | Work Type | Unit | Rate | |-----------|------|------| | ACM floor covering (Reed Hall East) | SF | $5.25 | | Drywall with joint compound | SF | $4.75 | | Windows (asbestos in frames) | each | $250.00 | | Spray-on Fireproofing | SF | $25.00 | | Pipe insulation / mudded pipes | LF | $12–25 | | Black mastic on ductwork | SF | $8.00 | | Floor tile and mastic (Neelsville MS) | SF | $3.50 | | Fire-rated doors | each | $100.00 | Berg provides dumpsters for removal. Progress Environmental performs the work. Documents created at Berg: Corey Woods (cwoods@bergdemo.com), Grace Morreale (gmorreale@bergdemo.com). Berg signatory: Durant Walters , President. A critically important detail: the JHH Reed Hall subcontract contains a personal guarantee clause (Article 24): > "In the event that the Subcontractor does not provide payment and performance bonds, the individual executing this Agreement on behalf of the Subcontractor, by signing his name hereto, whether as a corporate officer of the Subcontractor or otherwise, does hereby personally guarantee performance by the Subcontractor hereunder." Since Progress Environmental did not provide payment/performance bonds — Tim Shears personally guaranteed all obligations . An individual personally liable on subcontracts totaling $326,096 (JHH Reed Hall), $194,374 (Neelsville), and similar agreements on other projects. According to the Berg Related Party Spreadsheet — an internal register submitted monthly to Alaris — PROGRESS ENVIRO is classified by Berg as a "related party" and received $4,134,981 from January 2025 through May 2026. The sum of the two known contracts ($326K + $194K) represents less than 13% of total payments over 17 months. The source of affiliation between Progress Environmental Inc., Tim Shears, and Berg management is not disclosed in the Alaris agreements. Second major subcontractor: CCAPS Construction LLC , 527 Chesapeake Avenue, Baltimore, MD 21225. Authorized representative — Amy R. Bosnick , Partner. Master subcontract with Berg signed September 24, 2024 , for a 5-year term with automatic renewal. Signed by Durant Walters (dwalters@bergdemo.com) as President, The Berg Corporation. Third: Potomac Abatement LLC , 8309A Sherwick Court, Jessup, MD 20794. Signatory — Anthony Farnella (tony@potomacabatement.com). Master subcontract dated January 8, 2025 — four weeks before the Alaris deal closed. Also signed by Durant Walters. Document created by Leanne Young (lyoung@bergdemo.com). Fourth: J&M Demolition Environmental , 1005 South Main St, Ste 202, Hampstead, MD 21074. President — Jennifer Savala . Master subcontract signed October 16, 2024 by Durant Walters. 5-year term with automatic renewal. J&M worked on the Homestead Wakefield project — the very one for which Berg is now suing Locust Lane. Terms for all subcontractors are identical in one respect: pay-when-paid , 10% retention, Berg's right to offset debts from any project against any Berg-affiliated entity, 3-year prohibition on poaching Berg employees. But the master subcontract with J&M goes further than the rest. Verbatim: > "Receipt of payment from the Owner is a specific condition precedent to Berg's obligation to pay the Subcontractor, the risk of nonpayment by the Owner being on the Subcontractor for its portion of the work in place or material on the job site." > "If the Owner fails to make payment to Berg for work performed by Subcontractor, Subcontractor agrees that any mechanic's lien, bond or other action filed by Subcontractor may be stayed, at Berg's option, pending payment from Owner to Berg." That is: if the government client does not pay Berg — J&M not only does not get paid, but cannot file a lien without Berg's permission. Berg reserved the right to terminate the contract with J&M immediately, without notice, upon any "good faith belief" that the work is in jeopardy. All disputes — arbitration or court — only at Berg's option. Attorney fees if Berg wins: J&M's expense. Jury trial — both parties waived by contract. These are not partner terms — they are terms for a fully controlled subcontractor. --- Confidential Consent Campaign Eight days before the Alaris deal closed — January 23, 2025 — CFO of The Berg Corporation Howard Shearer (hshearer@bergdemo.com) sent a letter to Vanessa Ellis, Procurement Manager, Gilbane Building Company (1215 E Fort Avenue, Ste 100, Baltimore, MD 21230). Subject: Gilbane's consent to a change of ownership in connection with the impending sale of a "non-controlling equity interest" to a third-party investor. The investor is not named in the letter. The document file was marked "(TBC)" — To Be Confirmed. Verbatim from the letter: > "The Transaction has not been publicly disclosed and is highly confidential; therefore, please refrain from discussing this letter or the Transaction with any third parties." > "Your consent will become effective as of immediately prior to the effective date of the Transaction. If for any reason the Transaction does not occur, this letter and your consent hereunder will have no force or effect." Response deadline — January 28, 2025 (five days). The Alaris deal closed on February 5, 2025 . The letter refers to an existing Trade Contract Agreement between Gilbane and The Berg Corporation dated April 19, 2024 . The archive contains more than 20 executed Berg contracts with general contractors: Gilbane Building Company , Whiting-Turner , Clark Construction , Chesapeake Contracting Group , EE Reed Construction , Maryland Stadium Authority , Dept. of General Services , Housing Opportunities Montgomery County , Bozzuto Construction , Consigli . Most of these contracts required similar consent upon change of ownership — Berg requested it from all clients simultaneously, in "highly confidential" mode. --- Part VIII. Insurance Insurance proposal arranged through Commercial Insurance Associates for the 2026–2027 period. Total premium: | Year | Total Premium | |------|---------------| | 2024–2025 | $645,014 | | 2025–2026 | $811,478 | | 2026–2027 | $997,344 (+26%) | Coverage Structure 2026–2027 | Coverage | Insurer | Limit | Premium | |----------|---------|-------|---------| | General Liability + Pollution | Nautilus Insurance (A+ XV) | $1M per occurrence / $2M aggregate | $298,174 | | Excess Liability | Nautilus Insurance (A+ XV) | $10,000,000 | $353,527 | | Commercial Auto | Key Risk Insurance (A+ XV) | $1M liability | $231,432 | | Workers' Compensation | Chesapeake Employers' (A XIII) | $1M/$1M/$1M | $87,715 | | Executive Risk (D&O/EPL/Fiduciary/Crime) | Zurich American (A+ XV) | $8M aggregate | $17,074 | | Cyber Liability | Hartford Steam Boiler (A++ X) | $1M aggregate | $9,422 | | Total | | | $997,344 | Excess Liability premium growth: from $256,372 to $353,527 (+38%). General Liability growth: from $219,319 to $298,174 (+36%). Both increases tied to declared revenue growth from $45M to $60M. Pollution and Environmental Risk In addition to general coverage, Contractors Pollution Liability ($1M), Pollution Liability for Transportation Activities ($1M), and Non-Owned Disposal Sites ($1M) are included in the base policy. Site-Specific Pollution: "Not Covered" — liability for specific sites is not insured. Separately: Berkley Environmental Contractors and Consultants — a specialized insurer for contractors working with asbestos. Berg filed a Renewal Application for the upcoming period. "Titan" Captive Program Berg participates in a captive insurance program managed under the "Titan" structure. Captive — an affiliated insurer created by a company to retain insurance profits within the group and manage risks. The program working file for 2026–2027 (2MB). Total loss funds in draft calculation: $306,719. Total captive premium: $555,549. Executive Risk — D&O and the Alaris Condition Executive Risk policy (D&O + Employment Practices + Fiduciary + Crime) — Zurich American Insurance: - D&O: $3,000,000 limit - Employment Practices: $3,000,000 - Fiduciary: $1,000,000 - Crime (Employee Theft, Forgery, Computer Fraud): $1,000,000–$2,000,000 Bindability condition: > "Executive package — confirm Alaris Equity Partners has board representation to remove shareholder exclusion" Without confirmation of Alaris board representation, the insurer maintains a "shareholder exclusion" — meaning conflicts between shareholders are not covered. Also noted: "Driver exclusion for Matthew Trendell until we get updated driver information" — driver Matthew Trendell temporarily excluded from auto coverage. One Safety Director for the Entire Company Berg works with asbestos in 60 buildings on an Army base, in an active Smithsonian museum, and in 35 Baltimore Housing Authority residential buildings. Director of Safety — Chris Brophy — the sole Safety Department employee. In his self-assessment filed March 4, 2025: > "Currently a one employee department. Based on our workload and current/future growth it would be smart to bring a junior EHS person in to begin training." Brophy recommends hiring a junior EHS specialist, bringing in an external firm for post-project feedback, introducing a formal bonus for field supervisors who meet safety standards, and offering employees a 401K instead of a SIMPLE IRA — since "most of our competitors already have these offerings that are similar in size." From Workers' Compensation insurance documents: insurers — IWIF and Zurich, Exp Mod in Maryland: 0.67 (below industry average). Estimated WC premium 2026: $87,714 . According to Berg data, injury rates are significantly below industry average — with a single safety professional. --- Part IX. Active Portfolio: What They Are Demolishing Now The WIP (Work in Progress) report for May 2026 records more than 60 active projects with a total contract value of $104,348,428 and remaining backlog of $32,829,209 . Gross profit on active projects — $8,811,600 (26.8%). Key active projects: | Project | Client / GC | Contract | % Complete | Remaining | |---------|-------------|----------|------------|-----------| | Aberdeen Proving Ground MATOC | Kemron Environmental | $9,254,261 | 100% | $640,000 unpaid | | Geico Headquarters | GEICO (direct) | $5,254,661 | 9.7% | $4,577,798 remaining | | Poe Homes | Baltimore City Housing Authority | $4,414,384 | 31.6% | $2,376,734 remaining | | St. Elizabeth's DHS | Strittmatter Companies | $4,848,436 | 100% | ($7,511) — overrun | | Joint Base Andrews — Ambulatory Care CTR | Strittmatter Companies | $4,016,200 | 99.9% | $750,350 unpaid | | DC Archives | Gilbane | $4,492,950 | 39.7% | $2,845,389 remaining | | Adventist Hospital Abatement Demo | Clark Construction Group | $3,425,776 | 34.3% | $1,593,356 remaining | | Suitland High School Replacement | Turner Construction | $3,053,723 | 66.1% | $1,035,055 remaining | | PSP Academy Core | Wohlsen Construction | $2,633,464 | 24.5% | $2,222,729 remaining | The newest large project — Geico Headquarters : 9.7% complete, $5.25M contract signed directly with GEICO. Open billing: $4,577,798 . Poe Homes (Baltimore City Housing Authority) — the second large-scale public housing demolition after the Perkins Homes project. $4.4M contract, barely started (31.6%). Aberdeen Proving Ground MATOC (22-046): military base, $9.25M, 100% complete — but $640,000 still unpaid by Kemron Environmental. Joint Base Andrews (25-046): $4M, 99.9% complete — $750,350 remains as an open claim against Strittmatter Companies. --- Part X. Related Parties: $11.6 Million Over 17 Months The Alaris monthly questionnaire includes a mandatory question: "Were any funds transferred from a subsidiary to (your entity)?" and "Did (your entity) make any distributions to LLC members?" Berg answers both — YES. Alongside this, the company maintains an internal register of transactions with four related parties — entities affiliated with the group's management. A document titled Berg Related Party Spreadsheet is submitted monthly to Alaris as part of the reporting package. | Related Party | Activity Type | Total (Jan 2025 – May 2026) | |---------------|---------------|----------------------------| | HAWKINS MSNG | Transport and disposal (truckloads) | $7,094,615 | | PROGRESS ENVIRO | Environmental services | $4,134,981 | | NEALE DUMPS | Disposal site | ~$390,000 (6,014 loads) | | CATON AVE | Rent or services | ~$131,200 ($10,000–10,300/month) | | Total | | ~$11,750,796 | HAWKINS MSNG — the largest recipient. Peak months: January 2026 — $1,091,550 (936 loads), February 2026 — $1,233,050 (1,238 loads), March 2026 — $1,212,350 (1,320 loads). Average cost per load: $917–996 . Under the MSA government contract, Berg is prohibited from signing EPA documents for hazardous material transport (Article 21). The function of signing EPA manifests and acting as a licensed transporter is performed by HAWKINS MSNG — this explains both its "related party" status and the scale of payments ($7M+ over 17 months). COO Brandon Bonanno in his review of Nick Huppman (Inventory and Operations Manager): "clay from Hawkins" — Berg sells excavated clay through HAWKINS MSNG alongside scrap metal through Caton Avenue. PROGRESS ENVIRO in its peak month (June 2025) received $691,658 . For the first five months of 2025 — $1,490,062 total. NEALE DUMPS — a site with capacity of 22,097 loads (remaining as of May 2026). 6,014 loads used from March 2025 through May 2026. CATON AVE — fixed payment of $10,300/month from February 2026. From internal performance review documents: Caton Avenue is a physical facility in Baltimore where Berg sells recycled materials (scrap metal, concrete, clay). The facility is managed by General Superintendent Adam Trendell . In President Walters' KPA, "Caton Avenue" appears as a separate line item of monthly revenue — meaning Berg simultaneously pays $10,300/month into it and receives revenue from material sales through the same facility. Collectively, four related parties received from Berg Demo ~$11.75M over 17 months — 5.4 times more than Alaris received over the same period. The nature of the affiliation of all four entities with Berg management is not disclosed in public documents. --- To Whom This Is Addressed Board of Education of Harford County and Great Midwest Insurance Company — litigation is ongoing under the Maryland Little Miller Act in the amount of $266,162.88. The school in Harford County has been built; the subcontractor has not been paid. The reason — general contractor Locust Lane Farms has not settled with Berg. EPA, OSHA, Army Corps of Engineers — Crushing Corporation works with asbestos on 60 federal buildings (Aberdeen Proving Ground), in an active Smithsonian museum, and in 35 Baltimore Housing Authority residential buildings. Each of these sites requires licensing and compliance with the National Emission Standards for Hazardous Air Pollutants (NESHAP). Alaris Equity Partners (Toronto, TSX: AD) — by May 2026, had received cumulative $3,235,630 in preferred distributions. As of TTM, FCCR had dropped to 1.72x (from 2.72x in FY2025) — still above the bank minimum of 1.25x, but the trend is downward. Alaris has three board representatives (Gregg Delcourt, Connor Lesperance, Dan Maceachen) and receives monthly reports on fund movements between affiliated entities. PNC Bank — Notes Payable grew from $1.95M to $3.99M over one year (+105%). The one-time $2.71M transfer from TBG Operating to Crushing LLC (May 27, 2026) requires compliance with Section 5.4 of the credit agreement. In April 2026, TBG transferred a total of $2.5M to Crushing over 5 days ($1M + $1.5M). The volume of inter-entity transfers for April–May 2026 alone exceeded $5.2M . Related Party Oversight Authorities — Berg Demo paid four related parties (HAWKINS MSNG, PROGRESS ENVIRO, NEALE DUMPS, CATON AVE) approximately $11.75M over 17 months. These payments are disclosed to Alaris via Exhibit L, but not publicly. At HAWKINS MSNG's peak months — 1,238–1,320 loads/month at $917–996/load — this represents large-scale transportation of hazardous materials from the company's sites. ---