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&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&lt;b&gt;&lt;i&gt;&lt;font style="FONT-STYLE: italic; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold;" size="2"&gt;Note 26 &amp;#8212; Legal Matters&lt;/font&gt;&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 0.25in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Satterfield v. Lime Energy Co. et al., Case No.&amp;#160;12-cv-5704 (N.D. Ill.):&amp;#160; This is a putative class action on behalf of purchasers of Lime Energy&amp;#8217;s securities between May&amp;#160;14, 2008 and December&amp;#160;27, 2012, inclusive.&amp;#160; Following our announcement on July&amp;#160;17, 2012, four separate putative class actions were filed alleging violations of the federal securities laws.&amp;#160; The four cases were consolidated.&amp;#160; Pursuant to the Private Securities Litigation Reform Act of 1995 (the &amp;#8220;PSLRA&amp;#8221;), on October&amp;#160;26, 2012, the Court appointed Lead Plaintiffs.&amp;#160; Lead Plaintiffs filed a Consolidated Amended Class&amp;#160;Action Complaint on January&amp;#160;18, 2013, alleging that David Asplund, the Company&amp;#8217;s former CEO, John O&amp;#8217;Rourke, the Company&amp;#8217;s current President and CEO, and Jeffrey Mistarz, the Company&amp;#8217;s current CFO (the &amp;#8220;Defendants&amp;#8221;) issued false and misleading statements concerning its revenues during the class period and thereby artificially inflated its stock price.&amp;#160; On May&amp;#160;15, 2013, we filed a motion to dismiss, arguing that the Consolidated Amended Class&amp;#160;Action Complaint failed to plead facts sufficient to establish a &amp;#8220;strong inference&amp;#8221; that the defendants acted with scienter (i.e., either knowingly or recklessly) in connection with any of the alleged misstatements, as required by the PSLRA.&amp;#160; Plaintiffs&amp;#8217; filed a response to the motion to dismiss on July&amp;#160;22, 2013, and our reply to their response is due August&amp;#160;22, 2013.&amp;#160; A status hearing on the motion before Judge Gettleman has been set for October&amp;#160;24, 2013.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 0.25in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Kuberski v. Lime Energy Co. et al., Case No.&amp;#160;12-cv-7993 (N.D. Ill.):&amp;#160; This is a putative shareholder derivative action alleging that Lime&amp;#8217;s officers and directors breached their fiduciary duties to the Company from May&amp;#160;14, 2008 through the present by failing to maintain adequate internal controls and causing the Company to issue false and misleading statements concerning Lime&amp;#8217;s revenues.&amp;#160; An initial derivative complaint was filed on October&amp;#160;5, 2012.&amp;#160; A second derivative action was filed on March&amp;#160;5, 2013.&amp;#160; The two cases were consolidated and the Court appointed Lead Counsel for the Plaintiffs on April&amp;#160;9, 2013.&amp;#160; On May&amp;#160;9, 2013, the Plaintiffs filed a Verified Consolidated Shareholder Derivative Complaint.&amp;#160; On June&amp;#160;10, 2013, Defendants filed a motion to dismiss for failure to make a demand on the Board of Directors or to adequately plead why demand should be excused, as required by Rule&amp;#160;23.1 of the Federal Rules&amp;#160;of Civil Procedure and Delaware law.&amp;#160; Plaintiffs&amp;#8217; filed a response on July&amp;#160;8, 2013, and we filed a reply to Plaintiffs&amp;#8217; response on July&amp;#160;22, 2013.&amp;#160; The Court has indicated that it will rule&amp;#160;orally on the motion to dismiss on August&amp;#160;27, 2013.&lt;/font&gt;&lt;/p&gt;
&lt;p style="MARGIN: 0in 0in 0pt;"&gt;&amp;#160;&lt;/p&gt;
&lt;p style="TEXT-INDENT: 0.25in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;SEC Investigation.&amp;#160; The Securities and Exchange Commission is conducting an investigation of, among other things, our revenue recognition practices and financial reporting.&amp;#160; On September&amp;#160;11, 2012, the Commission issued a subpoena for documents.&amp;#160; We are cooperating with the Commission&amp;#8217;s investigation.&lt;/font&gt;&lt;/p&gt;
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