Native Environmental takes every reasonable action to ensure that our clients are taken care of now, and in the future. This commitment is evident in native's insurance program. Following are several important insurance highlights along with and explanation of how it helps our clients. 1. Native's pollution coverage provides coverage for mold on an "occurrence" basis. This means that if Native were to cause a mold pollution problem during the current policy year, Native's insurance coverage would still respond even it the problem was not discovered and reported for many years after. Less that 5% of firms performing mold abatement have "occurrence" coverage. The vast majority of mold contractors carry "claims-made" coverage for mold pollution and many don't carry pollution coverage at all. "Claims-made" coverage means that any claim must be reported to the current carrier during the current policy period or within a specified period of time (typically 30 days) after the policy expires. If you choose a mold abatement contractor with "claims-made" mold coverage, you better pray that that they are still in business if you ever need to remedy a pollution problem resulting from the work they preformed. 2. Native's pollution coverage covers all pollutants. Some pollution policies may exclude asbestos containing material or lead-based paint. 3. Native carries a $5,000,000 umbrella liability policy in addition to their base limit of $1,000,000. This means that Native's clients are provided with a total of $6,000,000 of insurance protection for general liability and auto liability. In this era when legal defense alone can go well into the six-figure range, a $1,000,000 limit may not go far in protecting the interests of project owners. Further, a limit could be eroded by a claims from other projects. A $1,000,000 limit might not take you far if problems arise. 4. Native's umbrella includes coverage for mold pollution. Many umbrella policies exclude mold, even if the primary pollution policy provides coverage. Native's umbrella has no mold exclusion which means that Native has the full policy limits of both the pollution and umbrella policy available to pay for mold related pollution claims. 5. Native is insured by the largest insurance company in the world. It doesn't matter how the policy reads if the insurer in insolvent. February 24, 2006 To: The City of Phoenix, Arizona Engineering and Architectural Services Department RE: Native Environmental, LLC Job Order Contract/ Citywide Asbestos and Lead-Based Paint Abatement Project No. 4119JOC042 To Whom It May Concern: Native Environmental, LLC has established a bonding line of credit with Great American Insurance Company. Great American is an "A" rated company by A.M. Best and is a federally approved surely by the United States Department of the Treasury. The bonding line of credit established for Native Environmental, LLC stands at $1,500,000 which has been set to meet the day to day needs of this company. This line should not be considered a maximum amount of surety credit available, but rather a working line of credit to meet the anticipated needs of the company's daily operations. Requests for surety credit above this line of credit are welcomed and reviewed on a case by case basis. As always, any future request for surety credit is based on the current underwriting information available at the time. We are pleased to give our highest recommendation to this firm and appreciate any courtesy you may extend this valued client. Best regards, Jeri Lynn Thomas Attorney-in-Fact Great American Insurance Company /jlt