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2001-243 O N CENO AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL LEGAL SERVICES WITH LLOYD, GOSSELINK, BLEVINS, ROCHELLE, BALDWIN & TOWNSEND, P C, FOR LEGAL SERVICES PERTAINING TO REPRESENTATION OF THE CITY BEFORE THE PUBLIC UTILITIES COMMISSION OF TEXAS, IN THE AREAS OF PUBLIC UTILITY REGULATORY LAW AND ADMINISTRATIVE LAW, RESPECTING THE ACTIVITIES OF DENTON MUNICIPAL ELECTRIC, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR, PROVIDING FOR RETROACTIVE EFFECT OF THE AGREEMENT, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council deems that it is in the public interest to engage the law firm of Lloyd, Gossehnk, Blevms, Rochelle, Baldwin & Townsend, P C, of Austin, Texas (the "Firm") to provide professional legal services to the City of Denton ("City") pertalm0g to representation of the City and Denton Municipal Electnc ("DME") before the Public Utilities Commission of Texas ("PUC") in the areas of public utilities regulatory law and adrmmstratlve law, respecting the activities of DME, and WHEREAS, the City staff has reported to the City Council that there is a substantial continued need for the above-referenced professional legal services, and that limited City staff cannot adequately perform the specialized services and tasks which are for the most part centered in Austin, Texas, with its own personnel, and WHEREAS, the City has heretofore engaged the Finn by numerous previous Agreements for Professional Legal Services to perform similar services to those services provided for m the Agreement for Professional Legal Services attached hereto Further, that thejFtrm has performed and provided legal services benefiUng the City under the most recent Agreemont which became effective in the year 2000, on a continuous and umntermpted basls, in order to safeguard and represent the interests of the City and DME before ~he PUC, in dealmg with sudden, largely unpredictable events and developments, and with admmlstratlve deadlines that many tnnes reqmre immediate attention or response On Ma~ch 1, 2001, the funds provided for in the most recent Agreement were exhausted Nonetheless, the City requested that the Firm provide continuous representation of the City and DME on important PUC issues until such time as a new Agreement for Professional Legal Services could be entered into, prowdmg for contlnuataon of the professional legal servmei as well as additional compensation to the Firm, and until such Agreement could be approved by the City Council Accorchngly, it is appropriate that the new Agreement for Professional Legal Sermces by and between the City and the Firm attached hereto, should be ratified and confirmed, and should be retroactively approved and made effective as of March 1, 2001, in order to properly compensate the Firm for its work that has directly benefited the City, and wi'ach work was done at the specific Instance and request of the City, and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act", generally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and quahficatlons, and for a fmr and reasonable price, and the Cotmcll hereby finds and concludes that the Finn ~s appropriately quahfied under the proms~ons of that law to be retmned as outside legal counsel for the C~ty and DME respectmg ttus engagement, NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the remtat~ons set forth and contained ~n the foregoing preamble are expressly incorporated by reference ~mo thru Ordinance SECTION2 That the C~ty Manager ~s hereby authorized to execute an Agreement for Professional Legal Serwces by and between the C~ty and the law firm of Lloyd, Gosselmk, Blevms, Rochelle, Baldwin & Townsend, P C, of Austin, Texas, in substantmlly the form of the Agreement for Professional Legal Servmes attached hereto and incorporated herewith by reference SECTION 3 That the award of this Agreement by the C~ty is on the bas~s of the demonstrated competence, knowledge, and qnahficat~ons of the F~rm and the ability of the F~rm to perform the serwces needed by the C~ty for a fair and reasonable price SECTION 4 That the expenditure of funds as prowded ~n the attached Agreement for Professional Legal Servmes m hereby authorized ~ECTION 5 That the above and foregmng Agreement for Professional Legal Services ~s hereby ratffied, confirmed, and retroactively approved, and shall be effective from and after March 1, 2001 SECTION6 That except as otherwise provided ~n Section 5 above, this Ordinance shall become effective lmmedmtely upor~ ~ts passage and approval PASSED AND APPROVED ttus the //~day of (.~~ ,2001 EULINE BROCK, MAYOR ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY S \Our Docurn~nt~\Ordmances~Ot~Lloyd Oossohnk PUC 2001 IA ord doc STATE OF TEXAS § COUNTY OF DENTON § AGREEMENT FOR PROFESSIONAL LEGAL SERVICES THIS AGREEMENT, made and entered into fins ~ day of 0//-,~" , 2001, by and between LLOYD, GOSSELINK, BLEVINS, ROCHELLI~, BA.~,DWIN & TOWNSEND, P C, a Texas Professional Corporation (hereinafter "Consultant"), with Lambeth Townsend, Shareholder, having full authority to execute this Agreement on behalf of the firm, 111 Congress Avenue, State 1800, Austin, Texas 78701, and the CITY OF DENTON, a Texas Municipal Corporation, 215 E MeKanney, Denton, Texas 75201 (hereinafter "City"), with Michael Conduff, City Manager, having full authority to execute fins Agreement on behalf of the City WITNESSETH' WHEREAS, the City deems it necessary and m the public interest to continue to engage legal counsel to continue to provide professional legal services with respect to the City's compliance with the Public Ut~hty Commission of Texas ("PUC") electric transmission service rules as well as any rulemakang proceeding or any project relating to electric transmission service as well as respecting the implementation of Senate Bill 7, or otherwise affecting the City, and WHEREAS, the Consultant is willing to perform such services in a professional manner as an independent contractor, and has competently and efficiently performed similar services for the City over the past several years, and the City has selected Consultant on the basis of demonstrated competence and qualifications necessary to perform the needed services, and WHEREAS, the City desires to engage the Consultant to render the professional services in connection therewith, for a fmr and reasonable price, consistent with, and for a fee not higher than the recommended practmes and fees published by the applicable professional associations, and such fees do not exceed any maximum provided by law, all in accordance with the provisions of Chapter 2254 of the Texas Government Code (the "Professional Services Procurement Act"), and the Consultant is wlllmg to provide such services, NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the City and Consultant do hereby mutually AGREE as follows, to wit I Scope of Serwces The Consultant shall perform the following services in a professional manner workang as an independent contractor not under the direct supervision and control of the City A Servmes to be provided Page 1 1 Consultant shall represent the C~ty before the PUC concermng the C~ty's comphance w~th the PUC's Transmission Service Rules and concerning any mlemakang proceeding or project relating to transmission servme, ~mplementang Senate Bill 7, or otherwise affectmg the City, ~nclud~ng, without hm~tataon, the professional legal services with regard to submitting pleachngs and comments and attending all uncontested heanngs and other proceedings ~n relation to these matters, and to consult w~th the C~ty through its Denton Mumc~pal Electric ("DME") staff w~th regard to all filings, uncontested hearings, and other ~ssues related to th~s project Promded, however, ~f the C~ty elects to participate m a contested case proceeding at the PUC relatang to transmission service or any other matter, the partms agree that ~t will be necessary to enter ~nto a separate professmnal servmes agreement, to provide for such add~taonal legal services 2 To consult w~th the C~ty Manager, the Assistant C~ty Manager for Utahtaes, the D~rector of Electric Utalltles, the C~ty Attorney, the Assistant City Attorney for Uttht~es, and/or other designated adm~mstratave personnel or staff regarding any and all aspects of the professional services to be performed, including legal research, analys~s, and adwce w~th respect to such matters This w~ll ~nclude coordmatang actawtaes w~th the D~rector of Electric Utaht~es, the C~ty Attorney and their respectave staff to efficiently perform the services reqmred and to preserve the Attomey/Chent pnwlege, work product, and all other apphcable exceptions to the d~scovery or (hsclosure of documents produced by the C~ty and the Consultant under the Scope of Serwces here~nabove B The Consultant shall perform all the services reqmred by tlus Agreement ~n a tamely fasinon, and shall complete them ~n comphance with schedules estabhshed by the C~ty through its D~rector of Electric Utahtaes as appropriate to carry out the terms and condmons of tins Agreement II. Term. Tins Agreement shall be retroactavely effective as of March 1, 2001 The Agreement shall terminate e~ther upon the completion of the professional serwces prowded for here~n, or upon the exhaustmn of all professional fees prowded for hereunder, or on December 31, 2001, wluehever event shall first occur Tins Agreement may be sooner terminated in accordance wtth the provisions hereof Time is of the essence of this Agreement Consultant shall make all reasonable efforts to complete the services set forth herein as exped~taously as possible during the term of tins Agreement, and to meet the schedules estabhshed by the C~ty, through its D~rector of Electric Utahtaes, or her designee III Compensation and Method of Payment A The Consultant shall charge the following fees for its professional serwces provided to the C~ty hereunder, based upon the following hourly Inlhng rates for the attomeys and support staff ~nvolved m tins matter Page 2 Staff Hourly Rate Lambeth Townsend, Shareholder $ 210 00 Georgia Cramp, Shareholder $195 00 Art Rodnguez, Associate $175 00 Mehasa E Ramlrez, Assocaate $150 00 Paralegal $ 80 00 Law Clerk $ 75 00 Consultant agrees that all charges for the legal serrates hereunder, ancludlng expenses as set forth in Section III C below, shall not exceed $65,000 00 B The Consultant shall endeavor to have the attorneys and employees listed an Section III A above, reasonably attempt to reduce costs by utflazlng other qualified shareholders, associates, and paralegals wherever feasible or possible The Consultant shall ball the City through the submission of ltemazed mvmces, statements, and other documentation, together with support data mdmatmg the progress of the work and the servaces performed on the basas of monthly statements, showing hourly rates mdlcatlng who performed the work, what type of work was done, and descriptions and/or detads of all servaces rendered, including a daffy, and an entry- by-entry reflectaon of ballable time spent on tins engagement, along with specific descnptaon and supporting documentation, if avaalable, respectang any reasonable and necessary out-of- pocket expenses recurred by Consultant in performing the professional servaces provaded for under flus Agreement Professional fees shall be billed in mlmmum one-tenth (1/10) hour increments C Additionally, the City shall either pay directly or reamburse the Consultant, as the case may be, for reasonable and necessary actual out-of-pocket expenses, including but not hmated to, long, rhstance telephone, telecopler, reproduction, postage, overnight comer, and transportation and travel All copies will be charged at the rate of fifteen cents ($15) per copy for copies made vathln Consultant's offices, with as much photocopying as possable beang done by outside vendors at bulk rates or by the Caty to reduce costs if bulk copying as necessary or appropriate The partaes agree that the charges for outgoing telecopaes from Consultant shall be $ 25 per page and that there will be no charge for lncomang telecoples D The parties anticipate that anvomes or statements for professaonal services will be generated on a monthly bas~s and that smd ~nvolces or statements will be sent to the City by Consultant on or about the 15th day of each month The Caty shall make payment to the Consultant within tlurty (30) days after receipt of an appropriate atemazed invoice or statement To the extent that any fees or expenses are disputed by the Caty, the City shall notify Consultant wit[nn tturty (30) days after its receipt of the anvolce or statement, and shall otherwase pay all undisputed amounts set forth an the anvome or statement wlthan thirty (30) days after ats receipt of the ~nvome or statement AIl reimbursable expenses, ancludang, but not necessarilY lamited to travel, lodgang, and meals, shall be paid at the actual cost, pursuant to the terms, conchtlons, and hrmtatlons set forth herean All lnvoaces or statements shall be a revaewed by Page 3 the D~rector, Denton Mummpal Electric, or her designee, and shall be reviewed and approved by the Assistant City Attomey/Uttht~es E It is understood and agreed that the Consultant shall work under the coordmatmn and general supervision of the D~rector of Electric Uttht~es, or her designee F All notmes, invoices, statements, and payments shall be made ~n writing and may be g~ven by personal dehvery or by mall As to notices to M~chael Conduff, City Manager, City of Denton, 215 East McKmney, Denton, Texas 76201 or to his designee As to invoices, statements, or payments to Michael S Copeland, Assistant C~ty Attomey/Utlhties, Utthty Adrmmstrat~on Department, at the same address, as to the C~ty, and to Lambeth Townsend, Lloyd/Gosselmk, 111 Congress Avenue, Suite 1800, Austin, Texas 78701, as to the Consultant When so addressed, the notice, invoice, statement and/or payment shall be deemed gnven upon deposit of same m the U S Mad, postage prepaid In all other instances, notices, invoices, statements, and/or payments shall be deemed g~ven at the t~me of actual delivery Changes may be made m the names and addresses of the responsible person or office to wluch notices, mvomes, statements and/or payments are to be sent, prowded reasonable notice is g~ven IV Professional Competency. A Consultant agrees that ~n the performance of these professional services, Consultant shall be responsible to the level of competency and shall use the same degree of sk~ll and care presently maintained by other practicing professionals performing the same or similar types of work For the purpose ofth~s Agreement, the key persons who will be performing most of the work hereunder shall be Lambeth Townsend and Georgm Cramp, Shareholders However, notbang hereto shall limit Consultant from using other qualified and competent members of the firm to perform the services reqmred hereto if such delegation ~s reasonably appropriate and properly protects the City's interests B Any agreements, orchnances, notmes, instruments, memoranda, reports, letters, and other legal documents prepared or obtained under the terms of th~s Agreement are instruments of service and the City shall retain ownership and a property ~nterest therein Ifthts Agreement ts terminated at any time for any reason prior to payment to the Consultant for work under th~s Agreement, all such documents prepared or obtained under the terms of the Agreement shall upon termination be dehvered to and become the property of the Ctty upon request and w~thout restriction on their use or further compensation to the Consultant V. Establishment and Maintenance of Records. Full and accurate records shall be maintained by the Consultant at ~ts place of bus~ness with respect to all matters covered by th~s Agreement Such records shall be maintained for a period of at least three years after receipt of final payment under this Agreement VI. Audits and Inspection. At any t~me dunng normal business hours and upon reasonable not,ce to the Consultant, there shall be made available to the City all of the Consultant's Page 4 records with respect to all matters covered by tins Agreement The Consultant shall permit the City to audit, examine, and make excepts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement VII AeeomphshmentofProieet' The Consultant shall commence, carry on, and complete this professional engagement with all practicable dispatch, m a sound, economical and efficient matter, and, in accordance w~th the provisions hereof and all applicable laws In accomplishing the projects, the Consultant shall take such steps as are appropriate to ~nsure that the work involved is properly coordinated w~th any related work being camed on by the City VIII. Indemmty and Independent Contractor Relat~onsinp' A Consultant shall perform all services as an independent contractor not under the direct supermslon and control of the City Nothing here~n shall be construed as creating a relationship of employer and employee between the part~es The City and Consultant agree to cooperate in the defense of any claims, action, stat, or proceeding of any kind brought by a third party winch may result from or directly or lnchrectly arise from any negligence and/or errors or omlssmns on the part of the Consultant or from any breach of the Consultant's obligations under th~s Agreement In the event of any litigation or clmm under this Agreement in wtuch Consultant is joined as a party, Consultant shall provide statable counsel to defend City and Consultant against such clmm. provided the Consultant shall have the right to proceed with the competent counsel of its own choosing The Consultant agrees to defend, mdemmfy and hold harmless the City and all of its officers, agents, servants, and employees agmnst any and all such claims to the extent of coverage by Consultant's professional habthty pohcy The Consultant agrees to pay all expenses, lncludang but not limited to attorney's fees, and satisfy all judgments that may be incurred or rendered agmnst the Consultant's professional liability insurance policy Nothing herein constitutes a wmver of any rights or remedies the City may have to pursue under either law or eqmty, ~ncludlng, without hm~tatlon, a cause of action for specific performance or for damages, a loss to the City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved B Consultant shall mmntmn and shall be caused to be in force at all times dunng the term of this Agreement, a legally binding policy of professional liability insurance, listed by Best Rated Careers, with a rating of "A-" or above, issued by an insurance career approved to do business ~n Texas by the State Insurance Commission Such coverage shall cover any clmm hereunder occasioned by the Consultant's neghgent professional act and/or error, act, or omission, m an amount not less than $1,000,000 combined sangle limit coverage per occurrence In the event of change or cancellation of the pohcy by the insurer, the Consultant hereby covenants to immediately notify the C~ty m writing thereof, and in such event, the Consultant shall, prior to the effective date of change or cancellation, serve a substitute pohcy furnisbang the same or higher amount of coverage The Consultant shall provide a copy of the declarataons page of such policy to the City through its Director of Electric of Utllmes s~multaneously with the executmn of this Agreement Page 5 IX Termination of Agreement: A In connection with the work outlmed m this Agreement, it is agreed and fully understood by the Consultant that the City may cancel or indefinitely suspend further work hereunder or terminate this Agreement at any tune upon written notice to Consultant, Consultant shall cease all work and labor being performed under th~s Agreement Consultant may terminate This Agreement by giving the City fifteen (15) days written notice that Consultant ~s no longer m a position to continue representing the City Consultant shall mvmce the City for all work satisfactorily completed and shall be compensated m accordance with the terms of flus Agreement AIl reports and other documents, or data, or work related to the project shall become the property of the Caty upon ternnnat~on oftfus Agreement B Th~s Agreement may be terminated m whole or an part, in writing, by either party in the event of substantial fmlure by the other party to fulfill its obllgaUons under this Agreement through no fault of the terminating party Provided, however, that no such termination may be affected, unless the other party is g~ven [1] written notice (delivered by certified mml, return receipt request) of intent to termmate, and not less than thirty (30) calendar days to cure the fmlure, and, [2] an opportunity for consultation with the terunnatlng party prior to termination C Notlung contained herem or elsewhere ~n this Agreement shall require the C~ty to pay for any work wluch as unsatisfactory or wbach ~s not submitted in comphance w~th the terms of th~s Agreement X Alternate Dispute Resolution. The Consultant agrees that, if necessary, ~t will use its best efforts to resolve any disputes regarding the Agreement through the use of mechatlon or other forms of alternate dispute resolution set forth ~n Chapter 154 of the Texas Civil Practices and Remedies Code (V A T C S ) XI. EntlreA~ Ttus Agreement represents the entire agreement and understandang between the part~es and any negotiations, proposals, or oral agreements are ~ntended to be ~ntegrated here~n and to be superseded by this written Agreement Any supplement or amendment to tbas Agreement, in order to be effective, shall be m writing and signed by the C~ty and the Consultant XII. ~with Laws' The Consultant shall comply w~th all federal, state, local laws, roles, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereafter be amended, including but not hnnted to the Texas Dmmpbnary Rules of Professional Conduct XIII. Governing Law. For the purpose of determining place of agreement and law govemmg same, this Agreement is entered ~nto in the C~ty and County of Denton, State of Texas, and shall be construed in accordance with, and govemed by the laws of the State of Texas Venue and jurisdiction of any stat or cause of action arising under or an connection w~th this Agreement shall he exclusively m a court of competent jurisdiction sitting m Denton County, Texas Page 6 XIV. Discrimination Prohibited. In performing the serwces reqmred hereunder, the Consultant shall not d~senmmate against any person on the basis of race, color, rehg~on, sex, national ongm or ancestry, age, or physmal handmap XV Personnel A Consultant represents that tt has or w~ll secure at tts own expense all personnel reqmred to perform the servmes reqmred under this Agreement Such personnel shall not be employees nor have any contractual relattons w~th the City Consultant shall ~nform the C~ty of any conflmt of tnterest or potential confhct of tnterest that may arise dunng the term of th~s Agreement, m accordance with Consultant's responstbtht~es under the Texas D~sc~phnary Rules of Professtonal Conduct B All services reqmred hereunder will be performed by the Consultant or under tts direct supervision All personnel engaged in work shall be quahfied and shall be hcensed, authorized, or permitted under state and local laws to perform such services XVI. Assignability' The Consultant shall not assign any interest tn thts Agreement and shall not transfer any interest tn tlus Agreement (whether by assignment, novatton, or otherwise) w~thout the prior wnttan consent of the Ctty thereto XVII. Severablllty: All agreements and covenants contmned hereto are severable, and m the event any of them, wtth the exception of those contatned tn secttons headed "Scope of Servtces", "Independent Contractor Relationship", and "Compensation and Method of Payment" hereof, shall be held to be mvahd by any court of competent junsdmt~on, this Agreement shall be mterpreted as though such mvahd agreements or covenants were not contmned herein XVIII Responsibilities for Claims and LmblhW Approval by the Ctty shall not constttute nor be deemed a release of the responsthfltty and hablhty of the Consultant for the accuracy and competency of its work, nor shall such approval be deemed to be an assumption of such respons~bthty of the C~ty for any defect tn any report or other documents prepared by the Consultant, its shareholders, associates, employees, officers, or agents m connection wtth thts engagement XIX. Modification of Agreement No wmver or modfficatton of tins Agreement or of any covenant, condition, or hm~tatton herein contamed shall be valid unless in wntmg and duly executed by the party to be charged therewith No ewdence of any watver or modfficatmn shall be offered or recetved m credence m any proceeding ansmg between the part. es hereto out of or affecting ttus Agreement, or the rights or obhgat~ons of the parttes hereunder, unless such wmver or modfficat~on ~s m writing, duly executed as aforesmd The parttes further agree that the provts~nns ofth~s artmle wtll not be waived as herem set forth XX CapUons The captions of this Agreement are for tnformatlonal purposes only and shall not m any way affect the substantive terms or condtuons ofthts Agreement Page 7 XXI, ~ This Agreement shall be bimhng upon and inure to the benefit of the parties hereto and their respective heirs, executors, admtmstrators, legal representatives, successors, and assigns, where permitted by this Agreement IN WITNESS HEREOF, the City of Denton, Texas has executed this Agreement in four (4) original counterparts by and through its duly authorized City Manager, and Consultant has executed this A~eemem by anC4ttro~gh its duly authorized undersigned Shareholder, dated this the /'/~ dayof h~/~ ,2001 CITY OF DENTON, TEXAS A Texas Mumclpal Corporation By Mlch6~l Condtl~f,t~.ql~ager ATTEST JENNIFER WALTERS, CITY SECRETARY B O _ _ L~) APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY LLOYD, GOSSELINK, ROCHELLE, BLEVINS ROCHELLE, BALDWIN & TOWNSEND, P C A Texas Professional Corporation By ~ //Lambeth Townsend, Shareholder Page 8 ATTEST S \Our Doeuments\C ontracts\01 ~Lloyd Gossehnk PSA PUC 2001 #lA doc Page 9 NORTH AMERICAN SPECIALTY INSURANCE COMPANY 650 Elm Street Manchester, NH 03101 2524 (800) 542 9200 LAWYERS PROFESSIONAL LIABILITY INSURANCE POLICY Th~s is a,clalms made policy Please review the policy carefully The policy is hmited to liability for only those claims that are first made against the Insured and reported to the company In writing during the policy period Pohcy Number BIL0000022-00 Insu~ ed by the stock ~hsurance company shown below, Producer's Name and Address here nafter called the Company ProTexn, Inc 42013-00 Nort 1 American SpeCialty Insurance Company 7557 Rambler Road, Suite 818 Dallas, Texas 75231-2303 DECLARATIONS Not,as of an mc,dent which you believe may result in a claim ITE~, I 1 Firm iName end Address or stat should be reported to Lloydl Gosselink, Blevins, Rochelle, Baldwin & North American Specialty Insurance Company Townsend, P C Attn Richard Morse 111 Congress Avenue, Suite 1800 The Center of New Hampshire, 650 I~lm Street Austin, Texas 78701 Manchester, NH 03101-2454 Telephone (800) 634 5226 (603) 634 5236 ITE~ I 2 Pollc~y Period Prom May q t 2000 To May 1,2002 12 01 a m Standard Time at the address of the Named Insured ~nd~cated in Item 1 ITEI~I 3 Limits of Liability (a) LIMIT OF LIABILITY PER CLAIM The liability of the Company for each Claim shall not exceed $ 5,000,000 (b) AGGREGATE LIMIT OF LIABILITY The total lirmt of the Company's hability for all, claims shall not exceed $ 5,000,000 ITEI~ 4 Per Claim Deductible $ 25,000 ITE&; 5 Aggregate Deductible $ 25~000 ITEI~i 6 Minimum Deductible $ 12,500 (in ac{~ordsnce with Ensuring Agreement B) ITE~ 7 Premium $ $60.316 ITEI~ 8 Forms and Endorsements Attached NAS-PRO-LPL-003 (11/99) NAS-PRO-005 (11/99) NAS-PRO-012 (11/99) NAS-POL-001 (7/98) NAS-PRO-006 (11/99) NAS-PRO-019 (11/99) NAS-PRO-009 (11/99) NAS-PRO-01~B (11/99) NAS-PRO-010 (11/99) ProTexn, Inc By Cc unters~gned Date May 1,2000 Authorized Representative - President Is., ue Date May 1, 2000 N,~S PRO 002 (11/991 Page 1 of 1