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03/02/2005 16:28 <br />Munici, <br />March 2, 2005 <br />Dawna T. Whaley <br />20 Civic Center Plaza. M-29 <br />Santa Ana, CA 92701 <br />Attn: Rosa Flores <br />17146871106 MUNICIPALITY INS SVS <br />rality Insurance Servs <br />302 W. Cerrltxra Ave., Bldg. 7, Anaheim, CA 92885-6666 <br />Tel: (714) 887-1100 (e00)420-40655 Fax: (714) 687-1109 <br />License # 0004849 <br />INSURANCE BINDER <br />COMPANY.Tudor Insurance Company- Best Rated A+VIII POLICY: HEOP0026367 <br />EFFECTIVE DATE: 03/01 /J005 —03/01/2006 <br />COVERAGE: Professional Liability — Claims Made Form <br />Retroactive Date: Inception of Policy <br />LIHM.- 51,000.000 Each Claim and aggregate including loss payments and/or expense. <br />DEDUCTIBLES: $2.500 each claim, including loss payments and/or expense <br />PREMIUM: <br />S 1,700.00 Total Premium <br />S 250.00 Wholesale Processing Fee (Fully Earned) <br />S 100.00 Retail Broker Fee (Fully Earned) <br />S 51.00 State Tax 3.00% <br />3.93 Stamp Fee 0.225% <br />S 2,104.93 Total Premium &Fees <br />TERMS AND CONDITIONS: <br />-Operations & Rating Basis: Payroll and Human Resource Consulting Services for others for a fee <br />-25% minimum earned premium in the event of cancellation <br />-Supplemental Endorsement/Exclusions to polity wording: <br />-Notice — Compliance with Terrorism Risk Insurance Act of 2002 <br />PAGE 02 <br />Inc. <br />-Notice to California Policy Holders APPROVED AS TO FORM <br />- Service of Suit <br />-Mold, Spores and/or Fungus Liability Exclusion <br />-Nuclear Energy Liability Exclusion Endorsement <br />Pending and Prior Litigation Exclusion 4 Laura Stitt Sheqdy <br />Bookkeepers Assistant City At orney <br />Data Processing Services Endorsement <br />EXCLUSIONS: Usual to policy wording including but not limited to the exclusions noted in Terms and Conditions <br />Best regards, <br />Carol Frost <br />President - MISi <br />