Agenda - 10-12-1995 - Item A 1-3 (no abstract)

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If the Trust experienced a deficit it would be distributed over all the Trust participants on a pro rata basis based on contributions to the Trust and approximately$45 million in annual contributions. That is, Orange County's share would be the percentage of the $2.2 million which its contributions are of the total annual contributions. For example, if the County's contributions are$1 million, this would be about two percent of $45 million and represents about$44,000. The Trust may not legally waive Orange County's or any other member's liability even if the member enters the Trust on a"fully insured"basis. It is the nature of a Trust that the members share in the potential loss as well as gain.