OSORIO INSURANCE AGENCY

World Class Solutions in Workers’ Compensation

325 Cumberland Street, Suite F

Pittsburg, CA  94565

800-932-2334 Fax 800-932-4402

September 20, 2007

Mr. Ken Salazar
Valley Process Systems, Inc.
3567 Benton Street, Suite 341
Santa Clara, CA 95051

 Re: Valley Process Systems, Inc. Insurance Program  

 Dear Ken,

Osorio Insurance Agency is part of one of the largest privately held agencies in the country (in the top 100) and has one of the largest inventory of Workers’ Compensation markets anywhere.  We have developed a comprehensive and proprietary set of risk management programs specific to the Workers’ Compensation arena.

We are pleased to confirm Valley Process Systems, Inc. maintains the following insurance coverage with a top rated company: 

Insurance Company of the West (ICW) rated A- / IX by A.M. Best is providing workers’ compensation program as evidenced by the attached specimen certificate of insurance. 

Insurance Company of the West (ICW) is admitted to do business in the State of California and is considered to be a top company insuring contractors in California.

We are please to report that Valley Process Systems, Inc. Workers Compensation experience modification average in the last year is 81% which is 19% better than industry average.  This is a direct result of Valley Process Systems, Inc. continued safety excellence and loss control efforts.

Osorio Insurance Agency is proud to represent Valley Process Systems, Inc. and welcome the opportunity to recommend them as a truly exceptional contractor.

Respectfully,

Gregory Osorio, ARM     

Experience Modification Rates        Cal/Osha Recordable                        Cal/Osha Loss Time

                        EMR                               Frequency Rates

2007 @ 0.81                                       2007 @ 0                                                        2007 @ 0

2006 @ 0.85                                       2006 @ 0                                                        2006 @ 0

2005 @ N/A                                       2005 @ 0                                                        2005 @ 0       

2004 @ N/A                                       2004 @ 0                                                        2004 @ 0

2003 @ N/A                                       2003 @ 0                                                        2003 @ 0

The 2007 Total Cal/Osha Frequency Rates to Date:

Total Cal/Osha Recordables @ 0

The 2006 Total Cal/Osha Loss Day Frequency Rates to Date: