4.0 RISK MANAGEMENT

Introduction & Summary:

In addition to minimizing risks associated with operational reliability and data accuracy, which are thoroughly addressed in Section 2.0. ESS has implemented a series of precautions to minimize:

1. Health and safety risks associated with exposure to spiking to our employees’ and our clients employees’ materials (See attached ESS’ Safety Plan);
2. Releases of spiking materials to the atmosphere, or the environment;
3. Fire hazards (explosion proof and intrinsically safe equipment); and
4. The financial impact of any of the above to ourselves and to our clients through comprehensive insurance coverages which include:
   1. Professional (Errors & Omissions) Liability,
   2. Contractors Pollution Liability,
   3. Hired and Non-Owned Auto Liability,
   4. Workman’s Compensation, and
   5. Employers and Commercial General Liability.
      (See attached Certificate of Liability Insurance).

As a result of the care with which we approach safety and risk management, ESS has never had an insurance claim, a lost time accident, or even a reportable incident. (See attached ERM Letters for Years 1999, 2000, 2001, 2002, and 2003; and ESS’ Safety Record Summary 1995-2003.)