LIABILITY POOL

GENERAL ASSESSMENT FORMULA

FOR THE

PURMS JOINT SELF-INSURANCE AGREEMENT

Amended and Restated as of March 30, 1995

TABLE OF CONTENTS

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1.���� Definitions for Liability General Assessment Formula. 2

1.1.����� Added Exposure Contracts. 2

1.2.����� Annual Assessment Limit 2

1.3.����� Assessment Limit Overage. 2

1.4.����� Assessment Share. 2

1.5.����� Basic Per Capita. 2

1.6.����� Contract Conversion Hours. 2

1.7.����� Defense Costs. 2

1.8.����� Employee Hours Worked. 2

1.9.����� Gross Revenues. 3

1.10.������� Historical Claims Experience. 3

1.11.������� Incurred Liability. 3

1.12.������� Special Defense Services. 3

2.���� Statement of General Assessment Formula. 3

2.2.����� Historical Claims Experience at 20%.. 3

2.3.����� Employee Hours Worked at 70%.. 4

3.���� Limitation in Amount of Annual General Assessments per Member 4

3.1.����� Application of Annual Assessment Limit 4

3.2.����� Reallocation of Assessment Limit Overages to Remaining Members. 5

4.���� Allocation of Fund's Expenditures for Covered Claims to Member's Historical Claims Experience. 5

4.1.����� General Allocations Rules. 6

4.2.����� Allocation of Defense Costs in Multi-Member Claims. 6

4.2.1.������ Defense by Common Counsel 6

4.2.2.������ Separate Defense Counsel in Conflict of Interest Situation