FIRST AMENDMENT TO AN AGREEMENT WITH NORTHERN CLAIMS MANAGEMENT, INC. TO PROVIDE WORKERS' COMPENSATION

CLAIMS ADMINISTRATION SERVICES

The amendment to the agreement made this ___ day of April 2003, by and between the COUNTY OF SAN MATEO, hereinafter designated as "County" and NORTHERN CLAIMS MANAGEMENT, INC., hereinafter designated NCM.

WITNESSETH:

WHEREAS, County and NCM mutually agree to amend said Agreement as to the term and compensation agreement:

WHEREAS, County and NCM agree that that said Agreement shall be amended as follows:

1. Section I: Term of said Agreement is amended as follows:

The term of this Agreement shall commence 12:01 am, June 1, 2000, and continue through 12 midnight, May 31, 2005 unless sooner terminated as hereinafter authorized.

2. Section II: Compensation of said Agreement is amended as follows:

Compensation shall be a fixed annual fee of $612,700 and payable on a monthly basis. Monthly invoices will be in the amount of $51,588.33.

3. The remainder of the Agreement shall remain in full force and effect.

IN WITNESSETH WHEREOF, the parties hereby execute this Agreement.

County of San Mateo

Date: ___________ ___________________

Priscilla Harris Morse

Risk Manager

County of San Mateo

455 County Center

Redwood City, CA 94063

Northern Claims Management, Inc. _________________

James Bankson

Managing Partner

Northern Claims Management, Inc. P.O. Box 6385

Santa Rosa, CA 95406