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Summary Judgment on the Affirmative Defense of


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    1   Thirteenth Court of Appeals Opinion (May 27, 2010)

2       Thirteenth Court of Appeals Judgment (May 27,2010)

3       Order Granting Plaintiffs' Amended Motion for Partial
        Summary Judgment on the Affirmative Defense of
        Workers' Compensation Bar and Order Denying
        Defendant Port Elevator-Brownsvile, L.C.'s Traditional
        No-Evidence Motion for Summary Judgment, Supplement
        and Second Supplement to Traditional and No-Evidence
        Motion for Summary Judgment (December 7,2007)

4       Final Judgment (Februar 22, 2008)

5       Charge of the Court (December 11, 2007)

6       Texas Mutual Workers' Compensation and Employers
        Liabilty Insurance Policy


                                   NUMBER 13-08-00150-CV

                                   COURT OF APPEALS

                         THIRTEENTH DISTRICT OF TEXAS

                           CORPUS CHRISTI - EDINBURG

       PORT ELEVATOR-BROWNSVILLE, L.L.C.,                                         Appellant,

      THE ESTATE OF THEIR SON, RAFAEL CASADOS,                                    Appellees.

                        On appeal from the 404th District Court of
                                Cameron County, Texas.

              Before Chief Justice Valdez and Justices Yañez and Vela
                             Opinion by Justice Yañez
            By a single issue, appellant, Port Elevator-Brownsvile, L.L.C. ("Port Elevatot',

      contends the trial court erred in denying its motion for summary judgment and in granting
the cross-motion for partial summary judgment filed by appellees, Rogelio and Rafaela

Casados.1 Specifically, Port Elevator contends that appellees' claims against it are barred

by the exclusive remedy provision of the Texas Workers' Compensation Act ("TWCA").2

We affrm.                                                      i. Background
            Staff Force, Inc. ("Staff Force") is a temporary employment agency that hires
temporary workers and assigns them to work for its client companies.3 Rafael Casados

was hired by Staff Force and assigned to work at Port Elevator's grain storage facilty at

the Port of Brownsvile. Shortly after his assignment to Port Elevator's facility, Casados

died when he was buried beneath twenty feet of grain.4

           Appellees sued Port Elevator, Staff Force, and others for wrongful death.5 Port

Elevator filed a traditional and no-evidence motion for summary judgment. In                                                             its traditional

            1 Appellees, plaintiffs below, are acting individually and as representatives of their deceased son,
Rafael Casados. Casados was unmarried and had no children when he died.

           2 See TEX. LABOR CODE ANN. §§ 406. 034( a), 408.001 (Vernon 2006). Port Elevator briefed a second

issue, arguing that if there is a fact question regarding whether Casados was Port Elevator's employee, the
trial court erred in refusing to submit a jury question on the issue. However, the parties do not dispute that
Casados was an employee of both Port Elevator and Staff Force, Inc. ("Staff Force"). In its reply brief, Port
Elevator notes that we need not reach the second issue because the parties agree that Casados was Port
Elevator's employee.
           3 The record reflects that Staff Force entered into a Staff Leasing Agreement with E-Z Bookkeepers,
Inc. dlbla Professional Business Solutions ("PBS")pursuant to the Staff Leasing Services Act ("SLSA"). See
¡d. §§ 91.001-.063 (Vernon 2006 & Supp. 2009). Thus, with respect                                   to PBS (the license holder), Staff            Force
was a "client company." See ¡d. § 91.001 (3), (11) (Vernon Supp. 2009). Then, Staff Force, acting                                                  as a
"general employer," provided temporary workers to its "client companies," including Port Elevator. See
Wingfoot Enters. v. Alvarado, 111 S.W.3d 134, 136 n.9 (Tex. 2003); Western Steel eo. , Inc. v. Altenburg,
169 S.W.3d 347, 350 (Tex. App.-Corpus Christi 2005) rev'd on other grounds, 206 S.W.3d 121, 124 (Tex.
2006). The effect of this arrangement is that PBS, the license holder, leased Casados to Staff Force, the
client company, which in turn, leased Casados to Port Elevator.

           4 The record shows that Staff Force's work order assigning Casados to Port Elevator reflects a "start
date" of April 25, 2005. Casados's death occurred on April 26, 2005.

           5 The only appellant in this appeal is Port Elevator.

motion, Port Elevator argued that: (1) Casados was Port Elevator's employee; (2) at the

time of Casados's death, Port Elevator was a subscriber to workers' compensation

insurance; and (3) appellees' claims are therefore barred by the'exclusive remedy provision

of the workers' compensation statute. Port Elevator also argued that appellees are barred

from recovering exemplary damages because they are not "within the defined class of

beneficiaries who may recover exemplary damages" under thestatute.6 As summary

judgment evidence, Port Elevator attached: (1) the affdavit of its general manager, Craig

Elkins; (2) the declarations page of its insurance policy; and (3) excerpts from the
deposition testimony of its employee, Javier Saldivar. In its second supplemental motion,

Port Elevator provided                 a   complete copy of its insurance policy. Port Elevator also argued

that appellees' claims were barred because Staff Force's workers' compensation carrier

paid all available benefits.7

            In the no":evidencesection of its motion, Port Elevator argued that the Texas
Department of Insurance, Division of                  Workers' Compensation has exclusivejurisdiction to

determine compensabilty and there is "no evidence that (appellees) have exhausted their

administrative remedies as required."

           Appellees fied a response to Port Elevator's motion and a cross-motion for partial

summary judgment on Port Elevator's affrmative defenses. In their traditional and no-

           6 See TEX. LABOR CODE ANN. § 408. 001 (b) (Vernon 2006) ("This section does not prohibit the recovery

of exemplary damages by the surviving spouse or heirs of the body of a deceased employee whose death was
caused by an intentional act or omission of the employer or by the employer's 'gross negligence.'").

           7 Port Elevator references exhibits attached to Staff Force's "Plea to Jurisdiction and Motion to

Dismiss or Abate," which are included in the record before us. Those documents purportedly show that Dallas
Fire Insurance Company ("Dallas Fire"), PBS's workers' compensation carrier, paid $56,238.00 to the
subsequent injury fund of the Division of Workers' Compensation because Casados had no legal
beneficiaries. See ¡d. § 403.007 (Vernon 2006).

 evidence motion, appellees argued that as a temporary worker, Casados was not covered

 under Port Elevator's workers' compensation policy. Specifically, appellees argued that

 (1) the exclusive remedy provision is an affrmative defense for which Port Elevator bore

 the burden of proof, and (2) Port Elevator had no evidence that it paid a workers'

 compensation insurance premium covering Casados and other temporary employees.

 Appellees also argued that they were not required to exhaust their administrative remedies

 because they were not seeking workers' compensation benefis. As summary judgment

 evidence, appellees attached: (1) Port Elevator's responses to appellees' discovery

 requests; (2) the deposition testimony of Elkins; (3) the deposition testimony of Veronica

 Castro, then branch manager of Staff Force's Brownsvile       offce; (4) a Staff Force work

 order reflecting Casados's classification code; (5) Casados's "First Report of Injury" form;

 and (6) an affdavit from appellees' attorney. Appellees filed an "Amended Motion for

 Partial Summary Judgment," in which they argued that the exclusive-remedy affrmative

 defense was not available to Port Elevator because its workers' compensation policy did

 not cover the temporary employees it obtained from Staff Force. Appellees also asserted

. that they were entitled to a no-evidence partial summary judgment because Port Elevator

 has no evidence that it was a subscriber to a policy that covered Casados~ As additional

 summary judgment evidence, appellees attached: (1) Port Elevator's second supplemental

 responses to appellee's requests for disclosure; and (2) the deposition testimony of Ernest

 Stokey, a vice president of Texas Mutual Insurance Company, Port Elevator's workers'

 compensation carrier. Appellees and Port Elevator also           filed various responses,

 supplemental responses, and replies, and submitted additional evidence.

            The trial court denied Port Elevator's motion for summary judgment and granted

appellees' amended motion for partial summary judgment. A jury found Port Elevator liable

for negligence and awarded appellees and Casados's estate approximately $2.7 milion

in damages. The trial court entered judgment on the verdict. Port Elevator fied a motion

for reconsideration of the trial court's rulings onthe motions for summary judgment and a

motion for judgment notwithstanding the verdict, both of which the trial court denied. This

appeal ensued.

                                       II. Standard of Review and Applicable Law

            Here, both Port Elevator's motion for summary judgment and appellees' amended

cross-motion for partial summary judgment were combined "traditional" and "no-evidence"

motions. We review the trial court's grant of summary judgment denovo.8 "When, as

here, both parties file a motion for                      summary judgment with the trial court, and one is

granted and one is denied, the reviewing court determines all questions presented and

renders the judgment that should have been rendered                             by the trial court."g When the trial

court does not specify the basis for its ruling, itis the appellant's burden on appeal to show

that none of the independent grounds that were asserted in support of summary judgment

is suffcient to         support the judgment.1o. Thus, when the trial court's order granting summary

judgment does not specify the grounds on which it was granted, we wil affrm the summary

judgment if any of the advanced theories support the judgment 11

           8 DR. Horton-Tex., Ltd. v. Markel
                                                      Int'I   Ins. Co.,300S.W.3d 740, 743 (Tex. 2009).
           9 HC Beck, Ltd. v. Rice, 284 S.W.3d 349, 352 (Tex. 2009).

           10 Coffey v. Singer Asset Fin. Co., 223 S.W.3d 559, 562-63 (Tex. App.-Dallas 2007, no pet. (citing
Star-Telegram, Inc. v. Doe, 915 S.W.2d 471, 473 (Tex. 1995)).

           11 Browning v. Prostok, 165 S.W.3d 336,344 (Tex. 2005) (citing Provident Life Ins. Co. v. Knott, 128
S.W.3d 211,216 (Tex. 2003)); Coffey, 223 S.W.3d at 563.

           As the Texas Supreme Court recently noted,

           The purpose of the Texas Workers' Compensation Act is to provide
           employees with certainty that their medical bils and lost wages wil be
           covered if they are injured. An employee benefits from workers'
           compensation insurance because it saves the time and litigation expense
           inherent in proving fault in a common law tort claim. But a subscribing
           employer also receives a benefit because it is then entitled to assert the
           statutory exclusive remedy defense against the tort claims of its employees
           for job related injuries.(12)

           The exclusive remedy provision provides that, "(r)ecovery of workers' compensation

benefits is the exclusive remedy of an employee covered by workers' compensation

insurance coverage . . . for the death of or a work-related injury sustained by the

employee."13 When a defendant moves for summary judgment based on an affrmative

defense, like the exclusive remedies provision of the TWCA, the defendant must
conclusively prove each element of the defense as a matter of law.14 Thus, Port Elevator

had the summary judgment burden of proving. its exclusive-remedy affrmative defense as

a matter of law.15 The Texas Supreme Court has recognized that temporary employees,

like Casados, may have more than one employer for the purposes of the TWCA and its

exclusive remedy provision.16 A borrowed servant                  is properly covered by the borrowing

           12 HC Beck, Ltd., 284 S.W.3d at 350.

           13 See TEX. LABOR CODE ANN. § 408.001 (a),

           14 Funes v. Eldridge E1ec. Co., 270 S.W.3d 666, 668 (Tex. App.-San Antonio 2008, no pet.); Morales
v. Martin Res., Inc., 183 S.W.3d 469, 471 (Tex. App.-Eastland 2005, no pet.); Western Steel Co., Inc., 169
S.W.3d at 349.
           15 See Morales, 183 S.W.3d at 471.

           16 Id. (citing Garza v. Exel Logistics, Inc., 161 S.W.3d 473, 475 (Tex. 2005); Wingloot Enters., 111
S.W.3d at 144).

 employer's workers' compensation insurance.17 Here, in order to be entitled to the

 exclusive-remedy affrmative defense, Port Elevator                                 was required to plead and prove: (1)

 Casados was its borrowed servant; (2) he was entitled to workers' compensation benefis;

 and (3) Port Elevator had workers' compensation insurance that covered claims
by borrowed servants.18

                                                                III. Discussion
            We begin by addressing whether Port Elevator met its burden to establish its
exclusive-remedy affrmative defense as a matter of law.19 In its motion for summary

judgment and on appeal, Port Elevator argued that it was entitled to the exclusive-remedy

affrmative defense because it established that: (1) Casados                                    was its employee (which is

undisputed); and (2) at the time of Casados's death, it was a subscriber to workers'

compensation insurance. In support of its position, Port Elevator cites Garza v. Exel

Logistics, Inc.20 Port Elevator argues that because "an employer may not split its workforce

by providing workers' compensation insurance to some workers while leaving others

without coverage," all of its employees-including Casados-were covered by its workers'

compensation policy. Essentially, Port Elevator's position is that if it purchased workers'

            17 Guerrero v. Harmon Tank Co., 55 S.W.3d 19, 25 (Tex. App.-Amarillo 2001, pet. denied).

           18 See Wesbyv. Act
                                         Pipe & Supply, Inc.,         199 S.W.3d 614, 617-18 (Tex. App.-Dallas 2006, no pet.);
Western Steel Co., Inc., 169 S.W.3d at 350; Univ. of Houston-Clear Lake v. Marsh, 981 S.W.2d 912, 914
(Tex. App.-Houston (1st Dist.) 1998, no pet.).

           19 We note that in its motion for summary judgment, Port Elevator argued that appellees had "no
evidence" that appellees exhausted their administrative remedies. Port Elevator has not raised this argument
on appeal, and we do not address it. See TEX. R. ApP. P. 38.1 (i).

           20 See Garza, 161 S.W.3d at 478 ("The Act does not permit a temporary employment agency like
Interim to obtain coverage for a client simply by obtaining coverage for itself. There must be explicit coverage
for the client.").

compensation insurance for one of its employees, then all of its employees are
covered-regardless of whether it intendedto cover all of its employees, whether the code

classifications in the policy reflect coverage for all employees, and whether it paid
premiums for temporary employees like Casados.

            In its response and on appeal, appellees contend that Port Elevator was required

to establish not only that it was a subscriber                          to workers' compensation insurance, but that

Casados was an employee covered by Port Elevator's policy. Thus, the controllng

question before the trial court, and                     now before this Court, is          whether Port Elevator indeed

could meet its burden by establishing only that (1)                                  Casados was its employee and (2) it

was a subscriber to workers' compensation insurance.

            We begin by examining Port Elevator's argument and summary Judgment evidence.

Port Elevator submitted the affdavit of Elkins, which stated that: (1) Port Elevator was a

subscriber to workers' compensation insurance, and (2)                                     Casados was Port Elevator's

employee at the time of his death. It also submitted excerpts from the deposition testimony

of Saldivar, which shows that (1) on the day he died, Casados was removing grain from

a bulkhead door; and (2) all of Port Elevator's employees-including. its temporary

employees-were a "necessary" part of Port Elevator's grain elevator operations. With

respect to the controllng issue, Port Elevator submitted its insurance policy, issued by its

carrier, Texas Mutual                  Insurance Company ('Texas Mutual"). The policy reflects that Port

Elevator was a subscriber to workers' compensation insurance covering its operations in

Texas for the relevant policy period.21 The information page of the policy, which lists the

           21 The policy period is July 12,2004 through July 12, 2005. Casados's fatal accident occurred on
April   26, 2005.

classification codes describing the type of work performed by the employees, lists only two

classifications: "clerical offce employees" and "grain elevator operation & local managers,

drivers." With regard to the information page, Port Elevator makes two arguments: (1)

Casados was included in the category of employees working in support of grain elevator

operations; and (2) classification codes do not establish coverage, but merely govern

premium calculations.

           In support of its argumentthat an employer may not "split" its workforce by covering

some of its employees and not covering others, Port Elevator cites Texas Workers'

Compensation Insurance Fund v. Del                          Industrial, Inc. ,22 Maryland Casualty Co. v. Sullvan,23

and Texas Employers' Insurance Ass'n v. Stan                           ton.

           Appellees respond thatthe supreme court in Del                          Industrial also recognized that the

case law       in this area is         dated and noted that "the Texas cases prohibiting 'split workforces'

do not address staff-leasing relationships, and were decided prior to the Legislature's

passage of the SLSA. "25 Appellees further argue that Sullvan and Stanton are

distinguishable because neither case addresses workers' compensation in the context of

temporary employees.

            In Del      Industrial, the supreme court held that "the Staff Leasing Services Act does

           22 Tex. Workers' Compensation Ins. Fund v. Del
                                                                       Industrial, Inc., 35 S.W.3d 591, 596 (Tex. 2000) ("It
has long been the law                in Texas that an employer may not split its workforce by providing workers'
compensation insurance to some workers while leaving others without coverage.").

           23 Md. Cas. Co. v. Sullvan, 334 S.W.2d 783, 786 (Tex. 1960).

           24 Tex. Employers'lns. Ass'n v. Stanton, 140 S.W.2d 337, 339 (Tex. Civ. App.-Amarilo 1940, writ
           25 See Del
                             Industrial, Inc., 35 S.W.3d at 596 (citing TEX. LABOR CODE ANN. §§ 91.001-.063) (the

not require a (client) company that purchases workers' compensation insurance for its

employees to pay premiums for employees whom the company leases from a staff leasing

company when the staff leasing company declines to purchase coverage for those leased

                   "26 Thus, in construing the provisions of the SLSA, the court permitted "the

p ractical         effect" that only part of the employer's work force (the direct non-leased-employee

part) was covered by workers' compensation insurance.27

             Del      Industrial is distinguishable from the present case because it involved a "staff-

leasing relationship" between a staff-leasing company and its client company pursuant to

the SLSA.28 In the present case, Staff Force is                                        not a staff leasing company within the

purview of the SLSA. 29 Thus, although Del                                      Industrial is distinguishable from the facts

before us, we recognize that                         it supports Port Elevator's position that non-SLSA-governed

cases-like             the present cas~are subject                         to the general rule "that an employer may not

split its workforce by providing workers' compensation insurance to some workers while

leaving others            without coverage."30

             We next address the evidence presented by                                  appellees. Appellees contend that Port


             27 See id.

             28 See ¡d.

             29 Neither part asserts that Staff Force is a staff leasing agency pursuant to the SLSA. Port Elevator
characterizes Staff Force as a "temporary employment agency." Appellees characterize Staff Force                             as a
"temporary staffing company." As noted, Staff Force was a "client company" under the SLSA because it
entered into a staff leasing agreement with PBS. Evidence in the record shows that PBS carried workers'
compensation insurance coverage for the applicable                         period through Dallas Fire. Staff Force was not a named
insured on the Dallas Fire policy or on any other policy that appears in the record.

             30 Del
                       Industrial, Inc., 35 S.W.3d at 596.

 Elevator's workers'compensation policy covered only its direct employees, not its

 temporary employees like Casados. Appellees argue that to establish its exclusive remedy

 affrmative defense, Port Elevator must show not only that it is a subscriber to workers'

 compensation insurance, but that Casados was "an employee covered by workers'

 compensation insurance coverage."31

            Appellees point to the information page of Port Elevator's policy, which lists the

 classification codes of covered employees: "8810" for "clerical óffce employees" and

 "8304" for "grain elevator operation & local managers, drivers." Appellees assert that as

 a temporary laborer, Casados fit into neither category, and was therefore not covered by

 the policy. In support, appellees cite the deposition testimony of Elkins, who testified that

. Casados was a "laborer," not a "manager," an "operator," or "clerical staff." Appellees also

 provided Staff Force's work order assigning Casados to Port Elevator;                               the work order

 identifies Casados's workers' compensation classification code as "5160:' The

 classification code "5160" does not appear on the information page of Port Elevator's

 insurance policy showing covered employees.32

            Appellees also rely on the deposition testimony of Stokey, "vice president of

 premium audit and premium recovery" at Texas Mutual, Port Elevator's workers'

 compensation carrier. Stokey explained that his duties include "securing. payroll

            31 See TEX.
                              LABoR CODE        ANN. § 408.001 (emphasis added).

            32 In its
                          appellate brief, Port Elevator cites Bradley v. Phillps Chern. Co., 484 F.Supp.2d 604, 615 (S.
 D. Tex. 2007), for the proposition that. the code classifications do not limit coverage under the policy and
 cannot be used to exclude employees from coverage. However, Port Elevator did not make this argument
 in its motion for summary judgment or in its responses to appellees' motion. Accordingly, we do not consider
 it. See TEX. R. CIV. P. 166a(c) ("Issues not expressly presented to the trial court by written motion, answer
 or other response shall not be considered on appeal as grounds for reversaL").

information from our policyholders to determine what their premiums are due (sic) based

on their organization, their activity, as well as their payrolL." Stokey testified, in relevant

part, as follows:

       Q (by appellees' counsel): Do you know whether or not Staff Force
       employees were included in the calculations of Port Elevator-Brownsvile,
       LC.'s Workers' Comp premiums?

       A (Stokey): Yes, i know.

       Q: Were they?
       A: No.

       Q: Should they have been, in your opinion?

       A: No.

       Q: Why not?
      A: Because from what we-what we've seen, that Staff Force has their own
       Workers; Compensation policy, and we do not-that would be double
      charging ifwè had included any of those employees, and that's contrary to
      the labor code of regulations. We can't-

       Q: What regulation?
      A: We can't double charge our policyholders in the State of Texas. You'd
      have Staff Force. being charged for premium and then I'm going to be
       penalizing our policyholder if we'd have        done something   like that, .and that's
       not being good stewards for our policyholder's premium.

      Q: Well, actually what you'd have is each company paying to cover its own
      employees, isn't that right?

                  . . . . (Objection and discussion)

      A: This is not a situation, from my perspective, where someone truly is
      working for two different companies. I-this is an employee that's working
      for one company that's in a type of business. As i understand, it's a
      temporary agency, i believe, Staff Force is; that the normal course of duty is
      that they go out and work for other clients of that-of Staff Force that need
      someone to do whatever type of task it is. That doesn't make them an

employee of Port Elevator, especially in lieu of the fact that Staff Force
already has their own Workers' Compensation policy.

Q: Have you analyzed Staff Force's policy?

A: No.

Q: Okay. So you don't really know whether or not they have a policy that
covers Mr. Casados or not, do you?


A: I haven't seen it, no.

Q: You've been told that?

A: By reliable sources, i think.

Q: Who told you that?

A: It's consultation with counseL.

Q: Okay. So we're clear, Port Elevator did not pay a premium that included
calculations for the payroll of Staff Force employees for 2003 through 2005,

A: That's correct.

Q: Did Texas Mutual charge any premiums for Staff Force employees~let
me restate that. Did Texas Mutual charge PortElevàtor any premiums for.
Workers' Compensation for Staff Fòrce employees after its end-of-the-year
audit in 2002, 2003, 2004, or 2005?


A: No, it did not.

Q: Did any Staff Force employee make a Vvorkers' Compensation claim
under Port Elevator's policy in 2002?

A: No.

Q: Did any Staff     Force employee make such a claim in 2003?

A: No.

Q: How about in 2004?

A: I believe that might be the year, the policy year where Mr. Casados' claim
came into our organization. I can't remember exactly. There's only one
claim from-and that's Mr. Casados'(s), and i can't recall if it was '04 or '05,
but that's the only one.

Q: Okay. i believe it was '05.

A: Okay.

Q: i think it was April of '05. So I understand what you're saying, the only
Workers' Compensation claim that's ever been made by a Staff Force
employee   on Port Elevator's Workers' Compensation policy was the claim
for Mr. Casados?

A: That's correct.

Q: Who made that claim?
A: i don't know.

Q: That claim was      denied, right?

A: Yes.


A: Yes, it was.

Q: Why was that claim denied?

A: i don't know.

Q: Certainly Port Elevator didn't pay a premium to cover any Staff Force
employees, right?


A: No, they did not.

Q: Okay. So you're certain, then, that for the years 2002 through 2005 the
payroll for Staff Force was not included in the premium calculations for Port

A: Correct.

Q: Okay. And this would be an example where that's the payroll for Port
Elevator, but does not include payroll for Staff Force employees working at
Port Elevator, right?

A: Correct.


A: That was-that's correct, it's not the intent.

Stokey was cross-examined by Port Elevator's counsel as follows:

Q (by Port Elevator's counsel): Okay. So just to use, then, that term, based
upon what you can see in Exhibit 3 there, Port Elevator was a subscriber as
of April 26, 2005?

A: That's correct. Yes, sir.

On further examination by appellees' counsel, Stokey testified:

Q (by appellees' counsel): Okay. So the term 'subscriber' doesn't define
who is or who isn't covered by Workers' Comp, it just describes whether or
not somebody has a Workers' Comp policy or not?


A: If I'm an employer and I'm a subscriber to Workers' Compensation, then
my employees are covered.

Q: Well, in this instanceL) Staff Force people weren't covered, right?


      A: From what I'm seeing on this-in this situation, you've got a situation
      where the claimant in question was not an employee of our policyholder.

       Q: All right. I apologize if I've asked you some of these questions I'm about
      to ask you again. I just want to get them clear on the record so that we don't
      have to bother you again with another deposition prior to triaL.

                  Port Elevator did not pay for Workers' Compensation insurance for
       Staff Force employees working at Port Elevator's facility, correct?


      A: That's correct.

      Q: And Texas Mutual did not charge Port Elevator for Workers'
      Compensation coverage for Staff Force employees working at Port
       Elevator's facility, correct?


      A: Correct.

      Q: And Texas Mutual did not intend to cover Staff Force employees under
      Port Elevator's Workers' Compensation policy, correct?


      A: Correct.

On further examination by Port Elevator's counsel, Stokey testified:

      Q (by Port Elevator's counsel): It is                       cover all .
                                              the intent of Texas Mutual to

      those persons who are in an employee/empJoyer relationship with Port
      Elevator during the policy period at issue?


      A: Yes. Correct.

     . Appellees' summary judgment evidence also included Elkins's deposition testimony,

which included the following:

      Q (by appellees' counsel): Did you have a conversation or (sic) any sort of
      at Staff Force if who, if anybody, was supposed to provide worker's comp for
      the Staff Force employees?

      A (Elkins): Yes, I asked Staff Force all your-'in the price you're charging me
      what's included, and they said workers' comp all of that is included in the
       price we're charging.

       Q: So you guys didn't get workers' comp for the Staff Force employees?

       (Port Elevator's counsel): Object to form.

      A: At the-we have workers' comp and if Staff Force's people Were not
       covered under Staff Force's comp then I believe my policy automatically
       charges me a premium based on the wages I pay Staff Force.

       Q: That's what you believe?

       A: That's what I believe, yes.

On further examination by Staff Force's counsel, Elkins testified:

       Q (by Staff Force's counsel): Now, when you had the discussion with Staff
      . Force, the question was asked, do you have workers' compensation
       insurance included in this rate?

       A (Elkins): Yes, sir.

       Q: All right. And what were you told?

       A: Yes, we do.

       Q: Did you ask which worker's compensation carrier they had worker's comp
       insurance with?

       A: No, we didn't.

       Q: Was there any åiscussion that if they   had worker's compensation who
       would be insured under the policy, being Staff Force and the client company.)
       or did you get into that explanation?

       A: They didn't            get into that explanation. i just asked them for a binder.

             Elkins testified that the "binder" he referred to reflected thatthe insurer was Dallas

 Fire. Elkins also testified that prior to Casados's death, no Port Elevator temporary

 employee had been injured.

             Appellees also submitted a "Notice of Denial of Compensability/Liability and

 Refusal to Pay Benefits" form issued by Texas Mutual, Port Elevator's workers'

 compensation carrier. The document contains the following explanation:

          . DWC020005-01 (.33) ,

           In their"Amended Motion for Partial Summary Judgment on the Affrmative Defense

of the Workers' Compensation Bar," appellees cited the supreme court's opinion in Garza

in support of their position that Port Elevator was required to show that it was covered by

a policy for an injury to Casados.34 We agree that Garza supports appellees' position. In

Garza,. the supreme                   court held that a tempora,ry employment agency cannot obtain

workers' compensation insurance for a client simply by obtaining coverage for itself; rather,

there must be explicit coverage for both employers.35 In so holding, the court explained:

           33 In its "Supplemental Response to Plaintiffs' Amended Motion for Summary Judgment," Port
Elevator noted that the denial statement was made by Texas Mutual, not by Port Elevator, and that Texas
Mutual's position is "wholly immaterial" to Port Elevator's position.

           34 See
                      Garza,    161 S.W.3dat481.
           35 Seeid. at

              The Staff Leasing              Services Act does not apply to temporary or seasonal
              employment, but the specificity with which it addresses workers'
              compensation strongly indicates that a leasing company cannotaccomplish
              under the general workers' compensation provisions of the Labor Code what
              it is prohibited from accomplishing under the Staff Leasing Services Act,
              which is also a part of the Labor Code. Suppose, for example, that the
              leasing company and the client decided not to expressly agree in a written
              contract that the client shares the right of direction and control of employees,
              but in fact, the parties contemplated they would share actual control and did
              so. The Staff Leasing Services Act would not apply. Did the Legislature
              intend to allow the leasing company and its client nevertheless to agree that
              the leasing company would obtain a policy for itself, based on its own
              experience rating, and that such a policy                             would also cover leased employees
              while working under the actual control of the client? The answer is no, this
              is not contemplated by the Labor Code. The specificity and details of the
              Staff Leasing Services                    Act negate the notion that parties can, by private
              agreement, decide that a single policy naming only                                        one insured wil cover
              one company's employees while they are working under the direct control of
              anothercompany,.or                   that    the experience rating of one andnotthe other                   wil
              determine who the named insured wil be.(36)

              Here, Port Elevator argues that because it can show that it had explicit workers'

compensation insurance coverage for itself, it established                             the exclusive remedy affrmative.

defense, and is not requited to show that its workers' compensation policy covered

Casados. We disagree.

              In Garza, the supreme court stated: "Accordingly, Exel has not established that it

is ·   cove     red by workers' compensation insurance coverage' for ä work-related injury

sustained by the employee,' in this case, Garza, which is a prerequisite to the application

of the exclusive remedy provision in séction408.001 (a)."37

              We hold that the summary judgment evidence conclusively established that
Casados was not a covered employee under Port Elevator's workers' compensation

              36 Id. (internal footnotes omitted).

              37 Id. at 481 (emphasis added).


insurance policy. Following Garza, we hold that Port Elevator has not established that it

is covered by workers' compensation insurance coverage for a work-related injury

sustained by the employee, in this case, Casados, which is a prerequisite to the application

ofthe exclusive remedy provision in section 408.001 (a).38 We overrule Port Elevator's sole

issue. In so holding, we are mindful that the workers' compensation statute is liberally

construed in the worker's favor.39

                                                  iv. Conclusion
              We hold that the trial court did not err in denying Port Elevatots motion for summary

judgment and in granting appellees' motion for partial summary judgment. We affrm the

trial   court's judgment.

                                                                LINDA REYNA YAN
Delivered andfied the
27th day ofMay, 2010.

              38 See id. (emphasis added).

                   See Navarette v. Temple Indep. Sch. Dist., 706 S.W.2d 308,309 (Tex. 1986).

                                 COURT OF APPEALS

                                    Thirteenth District

                             Corpus Christi - Edinburg, Texas

       Below is the JUDGMENT in the numbered cause set out herein to be Filed and
Entered in the Minutes of the Court of Appeals, Thirteenth District of Texas, at Corpus
Christi - Edinburg, as of the 27th day of May, 2010. If this Judgment does not conform
to the opinion handed down by the Court in this cause, any part may file a Motion for
Correction of Judgment with the Clerk of this Court.

CAUSE NO. 13-08-00150-CV                                    (Tr.Ct.No.2005-05-2855-G)
PORT ELEVATOR-BROWNSVILLE, L.L.C.,                                           Appellant,


THE ESTATE OF THEIR SON, RAFAEL CASADOS,                                    Appellees.

                On appeal to this Court from Cameron County, Texas.

On appeal from the 404th District Court of Cameron County, Texas, from an order
signed December 7, 2007 and a judgment signed February 22, 2008. Opinion by
Justice Linda Reyna Yañez.

THIS CAUSE was submitted to the Court on February 10, 2010, on oral argument, the
record, and briefs. These having been examined and fully considered, it is the opinion
of the Court that there was no error in the judgment of the court below, and said
judgment is hereby AFFIRMED against appellant, PORT ELEVATOR-BROWNSVILLE,

Costs of the appeal are adjudged against appellant, PORT ELEVATOR-
BROWNSVILLE, L.L.C. It is further ordered that this decision be certified below for

                             DORIAN E. RAMIREZ, CLERK
- . ..i.~. .:; '"

                                    co                                    (
                                              CAUSE NO. 200505 2855-G

                    ROGELIO CASADOS and RAAELA               §      IN THE DISTRICT COURT OF
                    CASADOS, INIVIDUALY AN AS                §
                    REPREENATIV OF TH ESTATE                 §
                    OF THEIR SON. RAAEL CAADOS               §
                    VS.                                      §      CAMON COUNT, TEXAS
                    PORT ELEATOR-BROWNSVILLE. L.C. §
                    SOUTT GRAIN CO; and §
                    AMSSTAFLEASINGNA.LTD §                          40TI JUDICAL DISTRICT

                             SUMMY JUMENT ON TH AFMATI DEFSE ,
                                              SUMY JUDGMENT
                          BE ITREMEBERE tht on this the _ day of December, 2007, cae on to
                be head Plaitifs' Amended Motion for Parial Sumar Judgment on the Afative
                Defense of Workers' Compensation Bar as well as Defendant Port Ele~ator-BrownviIe,

                L.C.'s Traditional and No-Evidence Motion for Summar Judgment. Supplement and

               Second Supplement to Traditional and No-Evidence Motion for Sumar Judgment.

               The Cour having reviewed and considere all motions, supplements to motions, aU

               responses, supplemental reponses, replies, pleadings and the sun judgment
               evidence, and havig heard argument of counel is of the opinion that Defendat Port

               Elevator-Brownvile, L.C.'s, Traditional and No-Evidence Motion for Summar

              Judgment. Supplement and Secnd Supplement to Traditional and No-Evidence Motion

              for Summar Judgment shoul.d be denied in this entirety and that Plaintifs' Amended

              Motion for Parial Swn Judgment on the Affative Defense of Workers'.

              Compensation Bar should be granted in its entirety.

                                       1l.N ~O 8 2D
.... ~. l" ~

                                            (                                      l
                           IT is THEREFORE ORDERED that Defendat Port Elevator-Brownvile,

               Le.'s Traditional and No-Evidence Motion for Summar Judgment, Supplement and

               Second Supplement to Traditional and No-Evidence Motion for Swnar Judgment is

               hereby DENIED in its entirety.

                          IT is FUTHER ORDERED that Plaintis7 Amended Motion for Parial
               Sumar Judgment on the Affirmative Defense of              Workers' Compensation Bar is hereby

               GRAND in its entiety.

                         SIGNltJls~of ~0(~200.

               AGREED AS TO FORM ONLY:

           Attorney for Plaitiffs                                            FI ~ Q'ClOCVP",

           Attorney for Defendant
                                                                      (~~ .
                                                                      a07~         Cesar Rodiguez

,    COPIES TO: 01/07/08
     HON. MIKE MIllS

                                                          ACS                                                  3.33
                                                   'lCANNFO nAn: JAN 0 R JflflJl
                                      (                                                  (.
                                                   CAUSE NO. 2005-05-2855

 ROGELlO CASADOS and RAFAELA                                         *'
                                                                                    IN THE DISTRICT COURT OF
                                                                          * .
 v.                                                                                 CAMERON COUNTY. TEXS

                                  Defendants.                        '*
                                                                                     404th JUDICIAL DISTRICT

                                                        FINAL JUDGMENT

                On the 10th day of December, 2007, the Court called this case for triaL. RogeJio

 Casados and Rafaela Casados, Individually and as Representatives ofthe Estate of                                       Their

.. Son. Rafael Casados (collectively "Plaintiffs") appeared in person anq through their

attorneys of record and announced ready for triaL. Port Elevator-Brownsville, L.L.C.

("Defendant")           appeared in person and through its attorneys and                    announced ready       for   triaL.

                The Court detennined that it had jurisdiction over the subject matter and the parties

to this proceeding. The Court then impaneled and swore the jury, which heard the
evidence and arguments of counseL. At. the conclusion of the evidence, the Court

submitted questions of fact, definitions. and instructions to the jury. In response, the jury

made findings that the Court received, filed and entered of record. The charge                                of the Court

and the verdict of the jury are incorporated by reference into this Judgment for all

purposes. Plaintiffs moved for judgment on the verdict.

                It is therefore. ORDERED that Plaintiff the Estate of Rafael Casadøs recover against '

Defendant Port Elevator-Brownsvile. L.L.C. the amount of$515, 167.09 which consists of:

                             (                                        c.
       (1) $46,212.05, which consists of-

              the $500,000 jury verdic plus prejudgment interest of $21,452.05 calculated
              at 7.25% per year from the date of filing (May 27, 2005) until the date the first
              settlement payment was made (December 29, 2005), totaling $521,452.05.
              From this total. $75,240 (a pro rata share ofthe $418,000 settement credit
              to which Port Elevator-Brownsville is entitled) is subtracted to yield
              $46,212.05; and

      (2) pre-judgment interest of $68,955.04 which has accrued on the $46.212.05
             at the at the rate of 7.25% from December 29,2005 to February 14, 2008,
             the day i:efore this Judgment is signed;

Post-judginent interest shall begin to accrue on the amount of $515,167.09. at the rate of

7.25% per annum from the date this Judgment is signed until paid.

      It is further ORDERED that Plaintiff RogeUo Casados recover against Defendant

Port Elevator-Brownsvile, L.L.C. the amount of $1,094,983.88 which consists of:

     (1) $558,652.88 which consists of-

            the $700,000 jury verdict for past damages plus prejudgment interest of
            $30,032.88, calculated at 7.25% per year from the date of filing
                                                                              (May 27,
            2005) until the date the first settlement payment was made (December 29.
            2005), totaling $730,032.88. From this total, $171,380 (a pro rata share of
           . the $418,000 settement credit to which Port Elevator-Brownsvile is entitled),
            is subtracted to yield $558,652.88;

     (2) pre-judgment interest of $86,331.00 which has accrued at the rate of 7.25%
            on only the damages sustained by Rogelio Casados in the past
            ($558,652.88) from December     29,   2005   to February 14. 2008. the   day   before
            the judgment wil be signed. See Johnson & Higgins v. Kenneco Energy, 962
           S.W.2d 507, 531 (Tex. 1998) (explaining calculation of pre-judgment
           interest); and

                                                                                      \ 354
                                        (                                          (
                It is further ORDERED that Plaintiff Rafaela Casados recover against Defendant

         Port Elevator-Brownsvile, L.L.C. the amount of $1 ,094,983.88 which consists of:

r               (1) $558,652.88 which consists of-

                         the $700,000 jury verdict for past damages plus prejudgment interest of
                         $30,032.88, calculated                 at 7.25% per year from the date of filing (May 27,
                         2005) until the date the first settement payment was made (December 29,
                         2005), totaling $730,032.88. From this total, $171,380 (a pro rata                share of
                         the $418,000 settement credit to which Port Elevator-Brownsvile is entied),
                         is subtracted to yield $558,652.88;

               (2) pre-judgment interest of $86,331.00 which has accred at the rate of 7.25%
                         on only the damages sustained by Rataela Casados in the past
                         ($558,652.88) from Decmber                29, 2005 to February 14, 2008, the day before

                         interest); and .                signed. See Johnson & Higgins v. Kenneco Energy, 962
                         the judgment will be

                         S.W.2d 507, 531 (Tex. 1998) (explaining calculation of pre-judgment

               (3) the $450,000 jury verdict for future damages.

     Post-judgment interest shall begin to accrue on the amount of $1,094,983.88 atthe rate

    of    7.25% per annum from the date this Judgment is signed until paid.

              The Court considered Plaintiffs' Motion and renders this              Judgment in conformitywrt

    the verdict for Plaintiffs.

              It is undisputed that Plaintifs have setted claims in this lawsuit against other parties

    in the aggregate amount of $418,000. Defendant Port Elevator-Brownsvile, LLC is entitled

    to a credit in that amount, which is reflected in the above calculations.

              It is further ORDERED that all costs of court are taxed to Defendant Port Elevator-

    Brownsvile, L.L.C.

             It is further ORDERED that this Judgment finally disposes of all claims and all

    partes and is appealable.

             It is further ORDERED that all writs and orders necessary for execution of this

                               (                            l
 Judgment shall issue.

           SIGNED the z¿ day           of 19,1Hn~ , 2008.

 Michael A. Caddell (¡;;A
 SST No. 03576700
 Richard D. Daly
 SST No. 00796429
 Caddell & Chapman
 1331 Lamar, Suite 1070
 Houston TX 77010-027
 713.751.0400 Telephone
 713.751.0906 Facsimile

  SST No. 04856500
  Law Offces of Frank Costila, LP
  5 E. Elizabeth Street
 Brownsvile TX 78520
 956.541-4982 Telephone
 956.54-3152 Facsimile


                                            i.--.. TO: 03105/08
                                                HON MIKE MIllS
 Approved as to Fonn Only:                      HON. FRAK COSTILLA
                                                HON. MiCHAL A. CADELL
                                                HON. WILllA E. REID
                                                HON. HORACIO L. BARERA

 M~é~ ~
Atlas & Hall, L.L.P.
818 Pecn
McAllen Texas 78501
956.682.5501 Telephone
956.686.6109 Facsimße


.      ,1
                                           (.                                           (
                                                       CAUSE NO. 2005-05-2855

      ROGELIO CASADOS and RAFAELA §                                        IN THE DISTRICT COURT OF

     v. §                             Plaintiffs, §


                                                                           CAMERON COUNT, TEXS

     L.L.C.;and STAFF FORCE, INC. §
                                     Defendants. §                          40th JUDICIAL DISTRICT

                                                       CHARGE OF THE COURT

               This case is submited to you by asking questions about the fact, which you mllst

     decide frm the evidence you have heard in this triaL. 'you are the sole judges of the
    crdibilty of the witnesses and weight to be given their                testimony . but   in matters of law, you .

    must be gòvemed by the instructions in this charge. In discharging your responsibilit on

    this jury, you wUl observe all the Instructins which have previously been given you. I shall

    now give you additional Instrctions which you should carefully and stricty follow during.

    your deliberations:

              1. Do not let bias, prejudice, or sympathy play any part In your delibeætins.

             2. In arrving at your answers, consider                only   the evidence introuce here under
    oath and such exhibit, if any, as have been Introduced for your consideration under the

    rulings of the court that is, what you have seen and heard In this courtoom, together wi

                                                                           SCNE ~riAN 0 8 2008
                                                                                                 -                      340
                                            r                                 r
     . the law as given you by the Court In your deliberations, you will not consider or discuss

       anyting that is not represented by the. evidence in this case.

                  3. Since every answer that is required by the charge is important, no juror

       should state or consider that any required answer is not importnt

                  4. You must not decide who you think should win, and then tr to answer the

       questions accrdingly. Simply answer the questions, and do not discuss nor concern

      yourselves with the effect of your answers.

                 5. You wil not decide the answer              to a question by lot or by drawing stws. or

      by any other method of chance. Do not return a quotient verdict. A quotient verdict means

      that the jurors agree to abide by the result to be reached by adding together each jurots

      figures and divding by the number of jurors to get an average. Do not do any trading on

      your answers; that is, one juror should not agree to           answer a certin question one way if

      others wil agree to answer another question another way.
                6. You may render your verdict upon the vote of ten or more members .of the

     jury. The same ten or more of you must agree upon all of the answers made and to the

     entire verdict You wil not, therefore, enter into an agreement to be bound by a majont

':   of any other vote of Jess than ten jurors. If the verdict and all of the answers therein are .

     reached by unanimous agreement, the presiding juror shaJJ-sign the verdict for the entire

     jury. If any juror disagrees a's to any answer made by the verdict, those jurors who agree

     to all findings shall each sign the verdict

               These instructons are given you because your conduct is subject to review the

     same as that of the witesses, partes, attorneys and the judge. If it should be found that

                                                             SCANED O~ 8 2008
                                               (                                                         ~
( you have disregarded any of these instrctions, it will be jury misconduct and it may require

          another mal by another jury; then all of our time will have been wasted.

                     The presiding juror or any other who observes a violation of the Court's instructions

         shall immediately warn the one who is violating the same and caution the juror not to do

         so again.

                    When words are used in the charge in a sense that vanes from the meaning

         commonly understood, you are given a proper legal definiton, which you are bound to

         accpt in place of any other meaning.

                   Answer "Yes" or "No" to all questions unless otherwse instructed. A "Yes" answer

        must be base on a preponderance of                           the evidence unless otherwise instructed.
                                                                                                                        If you do
        not find that a preponderance of the evidence supports a "Yes" answer, then answer "No."

                   The term "preponderance of the evidence" means the greater weight and degree

        of credible evidence admitted in this case. Whenever a question requires
                                                                                                                 an answer other
        than "Yes" or "No," your answer must be based on a preponderance of the evidence,

       unless otherwse instrcted.
                  A fact may be established by direct evidence or by circmstantial evidence or both.

       A fact Is established by direct evidence when proved by documentary evidence or by

       witesses who saw the act done or heard the words spoken. A fact is established by

       circmstantial evidence when it may be fainy and reasonably inferr frm other facts


                 If you answer questions about damages, answer each queston separately. Do not

      increase or reduce the amount in one answer because of the instructons in or your

      answers to any other questons about damages. Do not speculate about what any part's


                                                                                   ACS JAN 0 8 2008
                                                                  ~AM\JED DATL_..                                                   342
                       (                                     l
ultimate recovery mayor may not be. Any recovery wil be detennined by the Court when

it applies the law to your answers at the time of judgment


                                               ACS . '008                            343
                                      ~,."u...... ...IAM 08 Z
                                              (                                        l
ld                                                                QUESTION 1

                 Did the negligence, if any, of Defendant Port Elevator-Brownsvile proximately cause
          the death of Rafael Casados?

                     "Negligence" means failure to use ordinary care, that is, failng to do that which a
          persn of ordinary prudence would have done under       the same or similar circumstances or
          doing that which a persn of ordinary prudence would not have done under the same or
          similar circumstances.

                    "Ordinary care" means that degree of care that would be used by a persn of
          ordinary prudence under the same or similar circumstances.

                     "Proximate cause" means that cause which, in a natural and continuous sequence,
          prouces an event, and wihout which cause' such event      would not have occurred. In order
          to be a proximate. cause, the act or omission complained of must. be such that a person
          using ordinary care would have foreseen that the event, or some similar event, might
          reasonably result therefrm. There may be more than one proximate cause of an event.

                                 Answer "Yes" or "No." Aner: y e .s


                                                                             ACS   JAN 082008              314
                                                             .t..-..ç".. ,..__
                                    ~                                                             l
If your answer to Question 1 was "YS,. then answer                                the following question; otherwise, do (
not answer the following question.

                                                         QUESTION             2

          What sum of money, if paid now in cash, would have fairly and reasonably
compensated Rafael Casados for-

                     Pain and mental anguish.

                     "Pain and mental anguish- means the conscious physical pain
                     and emotional pain, torment. and sufering e~perience by
                     Rafael Casados before his death as a result of the occrrence
                     in question.

       Do not reduce the amount, if any ,In your answer because of the negligence, if any,
of Rafael Casados.

          Answer in dollars and cents for damages, if any.
                       4; ~OO () oV
         AnswerJ. .. I aD.. ~                        ;


                                                                    .. h . r.. ..~l r,,:-¥,,
                                                                       :-.~;.:r'tit::~~. .,,1:.   JAN 08 Z008
                                            (                                         ~.
( Answer the following question only if you unanimously answered "YES. to Question 1.
        Otherwse, do not answer the following question but proceed to Question 5.

        You are instrcted that, in order to answer "YES. to the following question, your answer
        must be unanimous. You may answer "NO. to the following question only upon a vote of
        ten or more jurors. Otherwse, you must not answer the following queston.

                                                              QUESTION 3

               Do you find by clear and convincing evidence that the harm to Raphael Casados
        resulted from gross negligence?

              "Clear and convincing evidence" means the measure or degree of proof
              produces a firm beDef or conviction of the tr of the allegations sought to
              be established.

              "Gross negligence" means an act or omission by Port Elevator-Brownsvile.

                        a. which when viewed objectively fim the standpoint of
                                   Port Elevator-Brownsvile at the time of its occrrence

                                                and .
                                  involves an extme degree  of risk, considenng. the
                                  probabilty and magnitude of the potential harm to

                                  of   which Port Elevator-Brownsville has actal, subjecte
                                 awareness of the risk' Involved, but neverteless
                                 proceeds with conscious Indiference to the rights,
                                 safety, or welfare of others.

       Answer "Yes" or "No!'                                                Answer:   NO


                                                               " M::S" JAN 0 8 Z008
                                                          '~CAM';lm r;-An"__                            346
                              (                                           f
Answer the following question only if you unanimously ansered "YES" to Question 3. (
Otherwise. do not answer          the following question but proæed to Question 5.

                                            QUESTION         4
You are instrted that you must unanimously agree on the amount of any award of
exemplary damages.

          What sum of money, if any, should be assessed against Port Elevator-Brownsville
and awarded to Rataela and Rogelio Casados as the Representatives of the Estate of
Rafael Casados as exemplary damages for the conduct found in response to Question 31

          "Exemplary damages" means any damages awarded as a penalt or by way
          of punishment but not for compensatory purpses. Exemplary damages
          includes punitive damages.

          Factors to consider in awarding exemplary damages, if any, are

                    a. The nature of the wrng.

                    b. The character of the conduct involved.

                    c. The degree of culpabilit of the wrongdoer. .
                    d. The sitation and sensibilItes of the partes concerned.

                    e. The extent to which such conduct offends a public
                           sense of justice and propnety.

                    f. The net wort of Port Elevator.Brownsville.

        Answer in dollars and cents, if any.



                                                        :,. .: JAN 0 8 ¡ODS
                                                       : ~-:...

                                            . ..u, i .r:~ '~;lÜ"
                                           ":'~f.C'!".i..iJ :1..JI~rt__~ ..                 3117
                                     (                                                   l
  If your answer to Question 1 was "YES, n then answer
                                                                                  the following question; otherwise, do
  not answer the following question.

                                                            QUESTION 5

              What sum of money, if paid now in cash, would fairly and reasonably compensate
 Rogelio Casados and Rafaela casados for their damages, if any, resultng frm
                                                                                                             th death
 of Rafael Casados?

            Consider the elements of damages listed below and none other. Consider each
 element separately. Do not award any sum of money on any element If you have
  otherwise, under some other element, awarded a sum of money for the same loss. That
  is, do not compensate twice for the same loss, if any. Do not include interest on any
, amount of damages you find.

      Answer separately, in dollars and cents, for damages. if any. Do not reduce the
 amounts, if any, in your answers because of the negligence, if any, of Rafael Casados.

           a.         Loss of companionship and sOcietysustain~ in the past by- ~
                      Rogelio Casados Answer: ~ OQ 0 001 .
                     Rafaela Casados                                       Answer1;¿DQ OOO"dtJ
                     "Loss of companionship and society means the loss of the
                     positive benefis flowing from the love, comfort,
                     companionship, and society that Rogelio Casados and Rafaela
                     Casados, in reasonable probabilit, would have received from
                     Rafael Casados had he lived.

          b.         Loss of companionship and society that, in reasonable probabilit, will be
                     sustained in the Mure by-
                                                                                   f .OD . t)e9
                    Rogelio Casados

                    Rafaela Casados
                                                                          Answer: JJ , 000..-
                                                                          Answer:;l D¡ 00 0, ~
         c.         Mental anguish sustained in the past by-
                                                                                     4: S 0 0 OCJ S2
                    Rogelio Casados Answer: Y / O.
                    Rafaela Casados
                                                                                    $ ~ 0 r &fJ
                                                                          Answer: ~ 0 '( 0001 ~


                                                                                    J~~ JAN () 8 2
                                                                               . ;"':;i) rF~.-r, '. . 008        , , 348
                      ~                                      ~
             "Mental anguish" means the emotinal pain. torment. and
             sufering experience by Rogelio Casados and Rafaela
             Casados because of the death of Rafael Casados.

             by- $ ol)
             Mental anguish that, in reasonable probabilty. will be sustained in the future

             Rogelio Casados Answer: ;;SO, 000. -
             Rataela Casados                      Answer: ~ ;)50: 00 Q. ~
       In determining damages for elements a. b, C, and d, you may consider the
relationship between Rafael Casados and his parents. their living arrngements. any
extended absences from one another. the harmny of their family relations. and their
common Interests and actvltes.


                                                '\ . "-.~ JAN 0 8 2008
                                       0- ~~: :.:.::'~::.                                     349
                                    ~                                                ~

             After you retire to the jury rom, you wil select your own presiding juror. The

  first thing the presiding Juror wil do is to have this complete charge read aloud and then

  you wil deliberate upon your             answers to the questions asked.

            It is the duty of the presiding juror~

                       1. to preside dunng your deliberations,

                       2. to see thàt your deliberations are conducted in an orderly manner
                                 and in accrdance wih the instrctons in this charge,

                       3. to wre out and hand to the bailif any communications concerning
                                 the case that you desire to have delivered to the judge,

                      4. to vote on the questions,

                      5. to wrie your answers to the questions in the spaces provided, and

                      6. to certif to your verdict in the space provided for the presiding
                                 juror's signature or to obtain the signatures of all the jurors who
                                 agree with the verdict if your verdict is less than unanimous.

           You should not discuss the case with anyone, not even wit other members of

the Jury, unless all of you are present and assembled in the jury room. Should anyone

attempt to talk to you about the case before the verdict is returned, whether at the

courthouse, at your home, or elsewhere, please inform the judge of this fact.

          When you have answered all the questions you are. required to answer under the

instrctions of the Judge and your preiding juror has placed your answers in the

spaces provided and signed the verdict as presiding juror or obtained the signatures,

you will inform the bailif at the ~oor of the jury room that you have reached a verdict,

and then you will return into court wih your verdict.

                                                                              JAN 082008               11
                                                                              ; '. ;l Sl "fIR
                                                       o. .....
                          (                   -

,   COPIES TO: 01/07/08
                                                    ¡"i.i:;l :d,
                                                    AU':Cr;¡. 01: -;O'CI.OCKif
                                                              _ .. GARZA ~M

                                                            DEC 11 2007 Qc


                              _'" .,_:!:) n~n!AN 0 S Z008
                        -                                        -

       We, the jury, have answere the above and foregoing questions as herein indicated,

and herewith return same into court as our verdict.

       l certif that the jury was unanimous in answering the following questions:

      Answer "AU" or list questions:      Al
                                                  ~~ ~G'
                                                 P~ror                                     -.

                                                  S e.-tq, 0 "Z (AW\ 0 r(A
                                                 Printed Name of Presiding Juror

          (If the answers to some questions were not unanimous, the jurors
                who agreed to those answers must cert as follows:)
      We agree to the answers to the following questions:

      List questions:



                                           .~. ,c.- .:' :::. ¡.h'¡lÀN--8 2008
tløXMu~                                                                  WORKERS' COMPENSATION AND
                                                                  EMPLOYERS LIABILITY INSURANCE POLICY
 .~ ~Co 221 W 6th Str"t. Suit 300                              Austn. Texas 78701-3403                INFORMATION PAGE
ITt      9155 R L 08t05 RD
         BROWNSVILLE, TX 78521                                                               POUCY NUMBER
twAt                                                                                         TSF-0001120085 20040712
AD                                                                                           Feder Tax 10 14-2a53035
          OT WOES NO Sl N3VE                                                                 Bureau Numbe 420121741
          _ ii ~ or op.                                                                      Bran                 00000
         8600 BLUFFSTONE CV STE B204
                                                                                                                  000 1120085
                                                                                                                  LIM I TED CORPORA
         AUSTIN. TX 78759-7812                                                               Intem Adjus          MONTHLV - 16% 1
03523                                                                                        Group                HAC 0 1

lÆ2 Th Pole Piiis fr 7-12-2004 To: 7-12-2006 12:01 A.. stndvdtlm atlflnsmallng adess
IT S A. Wom' ~on IMnee: Pirt One of the policy l1ppllea to the Wørra' Comperaatlon Law of UI.
                  lta Bsed hee: TEXAS
          B. EmOJln UablI kmnc: Par Tw of the po l1ppa ti \W                       In l11lh $lo Ibed'in Item 3A
                  Th Rmit of our UabUlt un Par 1' Ir:

                                                           Bod InJ by Acan l 600 .000 Eacl Acdent
                                                           Bo InJ by Dbeue . 500 , 000 Eac Emlo
                                                           Bo     In   by   Dlseue $ 600.000 PoUUmi
          C. oter Stales 1nhle: Partl of1f. poy appr_ to tl &tes,lfny,llt4 here: NOT APPll CABLE

          0. 11s poiiq inlUes these enorS4 .i seteds:
                  See Schedule of Endor.ementa ettiched
1T" Th prum fo th po Win be detered by ou miuii of Rues ClliÇ8ios, Rates Ml. RaIJ P\
          All lßloon required beow Is subec to verflaton and d1ang by iUd

             10AL ~TB STAt Pf                                                                         84,394.00

              WA I VER OF SUBROGAT ION. , . .. ......                                                                   .00
              INCREAED lIMITS. . . , . . . . . . . . . . .                                                           844.00
              TOTAL PREMIUM SUBJECT TO MODIFICATIONS. . , ,                                                       85,238.00
              PREMI~ MODIFIED TO REFLECT EXPERIENCE MOD OF (                                 .715 )               20.457.00-
              PREMIUM MODIFIED TO REfLECT SCHEDULE RATING Of (                                .96 ).               2,691.00-
              DEDUTf BlE PREM IUd , . . . , , . , . . .                                                                 .00
              ADW/FELA OR USLaH MINIMU . , . . . . .                                                                    .00
              PREMIUM DISCOUNT, IF APPLICABLE ( 10.70                                                              6,664.00"

              EXP ENSE CONSTANT CHARGE . . . . . . . .                                                                 1150.00
             lOAl E.lE ANL Fl                                                                         65.686.00
          t.lM Pf                               250.00
          CE Pf                             8,363.00                                                                              ~
                                                                            Conterlgned by

           lieu. O.te: 7-30-2004

        The T eX8S Mutal Insurence Company is required by Ja to provide it polic:olden; wi çertin
        accident prevention servces as required by Texa Labor Code Secn 411,066 at no addllonat
        chrge. lf you would like more Inorm can 1-80059-995 or (612' 32-3800 . If you have
        any quesons about this requireent call the Dision of Worker' Hea and Safll. Workers'
        Compesation Coision at 1-100-2.9595.
        WCOO1 (EO. 01-94)

   hu Gi
                                                                                     WORKERS' COMPENSATION AND
                                                                              EMPLOYERS LIABILITY INSURANCE POLICY
                                                                                                  SCHEDULE OF OPERATIONS
                                                                  EXSION OF INFORMATION PAGE
                 PAG             2
                NA AN AOESS OF INED                                                                          POICY NUMS
                    PORT ELEVATOR-BROWSVILLE LC                                                              TSF-OOO 1120085 20040712
                    9166 R L OSTOS RD
                    BROWNSVILLE, TX 78621                                                                    ISStOATE

                                           IT 4 ., S C H E 0 UL E OF 0 PER A TI 0 N S ..
                                                                       LOCATION INFORMATION
                                                                                              PR 1l:
                                                                                              10TH. es'ÆO       ivTEPE           EsiTE
                                                                                              ReTI             $tOOOf
                                                                                                              REMUll             PR
     ST LOC co. ClAlFlCTI
   42 00001 8810 CLER I CAL OfF ICE EMPLOYEES. NOC                                               76,000.00         .6500                488.00
    42 00001 8304 GRAIN ELEVATOR OPERATION a:.                                                  370,000.00       20.4400          75,628.00
                                  LOCAL MANAGERS, OR IVERS

   42 00001 8304 GRAIN ELEVATOR OPERATION a                                                      26,000.00       33.1100              8,.278,00
                  LOCAL MANAERS, DR IVERS

                                  Subj to Expar I.nce Mod of .75

                                  Total Eailmitad Standard Premium                                                                84,394.00

           Th en ches th pa to wl lis ai ttece on ii inon c:e of th po une dler dae Is Ined beow.
                     (T folng 9al6C ei' nee be copleted on whenUiIs enls ia su to prepar of
                                                                                                                            th pc.)
 1l enoren elf OI at f2:1 AM.1i tie, ro a pa of
 PolNo.                TSF-OOO 1120085 20040712                      of the   Texas Mutallmuranoe Company

 Issued    to          PORT ELEVATOR-BROWSVILLE lC                                                   Endorsement No.

 Premium        $
                                                                                                 Auhoried Repreentave
 WCOOf (ED.           1-9)
                                                 INSURED'S COpy                                JOPARKS          7-30-2004
   ... (                                                                             (
    1è.In Co                                                        WORKERS' COMPENSATION AND
                                                             EMPLOYERS LIABILITY INSURANCE POLICY
                                                                  SCHEDULE OF OPERATIONS - STATE
                                                   EXNSION OF INFORMATION PAGE
                  PAG      3

                  tw A1 AOSS OF i.EO                                                           PO Nl
                  PORT ELEVATOR-BROWSVILLE LC                                                  TSF-0001120086 20040712
                  9 t66 R L OSTOS RD
                  BROWNSVILLE, TX 78521                                                       ISSlOATE

                                       lT.c ~ SCHEDULE OF OPERATIONS ..
                                                           STATE INFORMATION

             ST     CO.            0E1P                                                       RATE
             42 9807           INCREASED lIMITS .liOO/600/500                                 .0100           844.00
             42 0063           PREMIUM DISCOUT                                                .1070         6,664.00-
             42 9898           EXP ER I ENCE MOD                                              .7600        20.457.00-
             42 9887           SCHEDULE RATE MOD IF I ER                                      .9600         2,691.00-
             42 0900           EXPENSE CONSTANT                                                               150.00
                               TottI   Premium AdJua1monta                                                 28,708.00-
                            Tote   I   Eatlm.ted Annu.1 PremIum                                            56,686.00

         Th enor chng !h po Co v. It Is at dec on th Inon dale of th po unes 8 ci dae is ~ed be.
                  (T fol -. mUM. nee ti coplet 0f wh th en Is f6 ~ I( prep of Ih po.)
Th en~ efec on at 12:1 .AN st lie, for . par of
poricNo.            18F-0001120085 20040112           of the Texas Mutual Insurance Company

                                                                                   Endornt No.

                                                                      ~JJ1. ~
                                                                       Autor Repnive
wc1 (E. 1-9                             i NSUREO' S COpy                  JOPARS              7-30-2004
                                                                               WORKERS' COMPENSATION AND
                                                                        EMPLOYERS UABILlTY INSURANCE POLlCY

                                                              EXSION OF INFORMATION PAGE

                   PAG 4                                                                              PO NU
                   NA nÐ AOSS OF INURED
                                                                                                      TSF~OOO 1120085 20040712
                   9166 R L OSTOS RD                                                                  lSSUDAlE
                   BROWVILLE, TX 78521

                                                      m:M 1       ..      LOCATIONS
                        NU                                    AOSS

                          00001                  PORT ELEVATOR-BROVILLE lC
                                                 9155 R L OSTOS RD
                                                 BROWNSVIllE, TX 78521

                                                 FEDERAL 10: 74-2G63036
                                                 EFFECT IVE: 7-12-2004 EXP IRES: 7-12-2005

              Tl en åing ih po to wt Ills IU eted on Ui n:on dae or th po unes II cfem ele Is Ined beow.
                       (T fcl~ .al;ing .c:ua ne be co ony v. lI endo Is is suen to prepll oflh po.)
    TI enoien. elTeç OI                                                           li 12; A.. at ti, fo li pai of

    PolNo.              TSf-OOOl1200S5 20040712 of                the   Texas Mutllnsunince Company

    Issued    to        PORT ElEVATOR-BROWNSV IlLE LC
                                                                                             Endor3emnt Jo.

    Premium        $                                                             ~YJ.4 ~
                                                                                       Authoze Reprenta

    WC1 (ED. 1-94
                                                     INSURED'S COpy                JOPARKS       7-30-2004
~ .. l                                                              WORKl~' COMPENSATION AND
                                                     EMPLOYERS LIABILITY INSURACE POLICY

                                                                          ENDORSEMENT SCHEDULE

          PAG 6
          NM Nl AO Of INUReD                                                        PO NU
          PORT ELEVATOR-BROWSVILLE LC                                               TSF-OOO 1120085 20040112
          9166 R L OSTOS RD
          SROWNSVILLE, TX 78521                                                     lSfDATE

                      IT 30           -     ENDORSEMENT SCHEDULE                     ..

 STATE           NUMBR            OEPT                                                            eD  DATE

  42     TM-LHW-200'               lONGSHOE/HARBOR ACT COVERAGE                                 9-24-2001
  42     TMNT I C-2003             TERROR I SM I NSURANCE COVERAGE                              1-02-2003
  42     TN-pe-200'                POL I tY CONO I T IONS ENDORSEMNT                            9-24-2001
  42     TM--2001                  JiTUAL ENDOSEMENT FOR                                        8-20"'2001
  42     WCOO 00 OOA               WOKERS COMENSAT ION AND 6MRLO                               11-04-1995
  42     WCOO 00 01                WORKERS COMP/EMPLOYERS L lAB                                 1-01-1884
  42     WCOO 04 06                PREMIUM DISCONT                                              1-01-1094
  42     WC42 03 01F               TEXASAMNDATORY                                               1-01-2000
  42     WC42 03 08                PARTNERS/OFF I CERSJOTHERS E                                 .1-01-1'197
  42     WC42 04 04               GROUP PURCHASE OF WOKERS COMP                                1-01-1994
  42     WC42 04 07                AUDIT PREMIW ENDORSEMENT                                    3-23-2002

       Th enen ches th po to ~ It Is iilt ef on th In dÐe of 1l pall unles a dieret dae Is lned beow.
            (T ro 'iltae c1uo- ne be c:pleled on wh th enen It i- aueo to prep of th fl.)

Th en, efec on                                                   et 12: AM. il ti, fo a pi of

PoDNo. TSf-0001120086 20040712            Of the   Texlls Mutal Insurance Company

                                                                           EndOlem No.
                                                                ~/i1 ~ Author Rereent
WCO1 (Eo. 1-9                   tr~'SUED i S COpy                     JOPARS              7-30-2004

                                                                                                        \ 2~)8
    T' l
    iexa                                                    TES WORKRS' COMPENSA110N AND
                                                               EMPLOYERS UAIUT POLICY

                            Ii Cu                                                                                              TM.lHW-2001
                                                 LONGSHORE AND HARBOR WORKS'
                                           COMPENSATION ACT COVERAGE ENDORSEMENT

                                                   IMPORTANT NOl1CE
                                  THE INSURANCE PROVDED BY THIS ENDORSEMEN IS UMITD.
    this coerage applies only to pers under your contct of hire, wheter exp Of Impßed. oral or wren, and Includes
    emplyees employed in the usal cours and scpe of your buness wh are dIrected by you tempoanly to penn
    servce outside the usual cours and scpe of your buness. An employee who Is injure whUe wor in another
    Juriicton or the employee's legal benefial) is entit to all rihts and remedes If the Injuiy wold be compensable if it
    had ocrr 1n this state !m the employee has s1nifnt conlact wi this slate or the employmen is prncipaly loced
    In th state. An employee has signifcant contact wih thi staie If lhe employee was hired or recrited In this state and the
    employee was Injure not laier than one year afer the date of hire or has worked In thIs state for at least ten workng days
    precing the date of Injury.
    Th endorsement apples only to work subject to the Longhore and Harbr Worker' compensStlon Act In a state shown
    In the SCedule.
    General Secton C. Workers' compesaion Law Is replace by the faQowng:
    C. Woriers' compnsation La
                Worer Copensaion law means the wOfers or worken's compensaton law and occpatinal disase law
                of eac state or terroiy named In Item 3,A. of the Infonatfan Page and the Longshore amt Hafbr Workers
                Compention Act (33 USC SecOl' 901.950. It Includes any amendments to th ia that ¡¡re in efeCl
                duñng the policy period. It doe not Include any other federal workers or worken'S compensaton law, oter
                federa ocpaonal disas law or .the prvlons of any law that prove nonoccuPåtlonal dibil benefi.

    Part Two (Eployer Lrablllty Insurance). C. exclusons.. exclion 8, does not apply to work subjec to the Lonhore and
    Harbr Worers' Compenson Act.

    This endorsment does not apply to work subject to the Defense Base Act. the outer Continenal Shel Lands Act, or the
     Nonappropnated Fund Instruenarites Act
                                                                                                          Longhore and Harbr Workers'
                                                                                                        Compesation Ad Covrage Percntage
     TEXS                                                                                                               62%

                                                                                                                              ordinarily subject to the
     The raes tor classificaons with co numbers not followed by the letter ~p are rates for work not

     Lóngshre and Harb Worers' Compenson Ad. If this polley coers work under such classlftlon. and If the work is
     subject to the longore and Harbr WOfers compenson Act those noOoF clasifcaon raes wi" be incrse by the
     Longshore and Harbr Workers' Compensation Act Covrae Percntage show tn the Schedule.

             Th enom ~ng th po to wt k Is aU efec ot th in date of the po lIes i dle: dae Is lned be.
                   (T foowng"a cl- ne be coed on 1W tt er " I8 ~ to prepar of th po.)
                                                                                          at 12: AM 5t ti, ro 11 pa of
    Tl enii etec on

    Pol No. TSF-OOO 1120085 200410712 of
                                                                the Texas Mutid Insurance Company
                                                                                                       Endoremnt .No.

                                                                                          ~PL 'a

                                                                                                       AuUtoii ReprentUw
                                                               INSURED'S COpy                               JOPARKS       7-30-2004

                                           (                                              (

       Ii Ca
                                                      TEXS WORKERS' COMPENSATION AND
                                                         EMPLOYERS UABIUTY POUCY


                                                 POUCYHOLOER DICLOSURE
                                          NOTIce OF TERRORISM INSURACE COVEGE

                   Coerae for acts of telTnsm Is already Included tn your currnt workers' compention
                   policy. You shouk! know that, effective Novembe 26, 2002, under your exing
                   coverage, any losses          caused by certifed. aèt of lerrnsm would be partially remburs
                  . by the United States under   a formula established by federal
                                                                                    law. Under tills formula, the
                   United States pays 90% of covered terrSl loss exceedng the statutor! establed
                   deductble pa by the Insurance company prving the coeige. Th porton of your
                   annual prmium that Is attbuable to corage fot acts ofterñsm Is $.J at ths tie.

       Th en clinge the pollçy to wt " Is att1ltd elfeç on Uie lnc det. d the po unss a cierent dae Is inte be.
            (T folng "atiaeng cluse' need be cceted on Whn tl eionieinen i.1u lIbsequen to prepara of lhe po.)
                                                                       at 12:01 A.M. stndar Uin for . mit d
     Th enorem efec on
     Polic No. TSF-00011200S5 20040712                    oUli& Tex~s Mutal In8uran~ Company



     Preium        $-                                                                ~JL           Endors No.

                                                                                              Autor Repenbe

     TM1C-20 (E 011021
                                                         INSURED'S COpy                     JOPARKS           7-30-2004
                                                               TE WORKER' COMPENSATION AND

.! WlJCo
                                                                  EMPLOYERS UAIUT POUCY

      Th named insured raties 'and accept the terms and conditons of the policy to which this
      endorsement is attche as well as the tenn listed below.
      1. PoHcles that are on an Inteñm reportng basi may no be financ. Texas Mutal Insurance Company (Texas Mutuals
      may cacel coerage If it determines that Interim report have ben finance In violation of this prhibiion.
      2. The named Insure certes that the payron establhed by classficaon coes In th appicaon for coerae Is 8 true
      and reasonable estmate for the period of coerag reuesed and win prompty report any materil change in payroll
      expures to Texas Mutua/SM. TttlØ$ Mutua/SM may adjus prium for the polley upon recept of suc Inormaton.
      3. Th named Insured and Its affliates permit Tex8$ MutUS/SM acss to all of their employment Informaton and rerd
      filed wih the Texas Wol1orce Commision, and hereby waive the confdentiali of sulnformatlon and record.

      4. AJ oblations ofthe named Insured are penormabl In Travi County, Tex and said count will be th leal venue for
      any suit ariIng fr this contract Maintenance of an acton In Tra Count, Texa does not wort an InJusce to the
      named Insured and is In the          Intere of the partes, and trnser of the acton wouldwor1 an Injustce to th partIes. Any
      suit mus be fied In Tras County, Texas. ..
      5. If the Insure default on payent of any premiums due uOder any policy isued, then all premiums due and unpaid shall
      be due and payable at the ofce of                   Tex88 Mutus/SMln Ausn, Travi County, Texas.

      6. A1llnfoimation supplied to       Texes MutuafSM . by the named Insure or It agent In the application fòr Insurance or
      otherwe Is tre and complete; noting matei1a1 regarding lts operations has ben' omHted; and the named Insured
      intened Texas Mutua/8M to rely on such Informon in Issuing thI policy. The named Insure asumed the dut of ful
      disosure of such Intonnaton and that Texas Mutusf:w, has no duty to inquire furtr rearding such Inforaton. The
; (   name Inure Is not violating any prsion of  the Texs Workers Compeion Ad and Is not subcntcting any work to
      8 subcntractor wl the Intent 10 avd liabi as an employer.
      7. The named insre wlll not cause aiiy cel1e of Insurace to be Issued for the purpse of sang the workers'
      competion Insurance reuirement of any third part.
                                                                         Includng any govermental ent, unles the røunerlon paid to
      the Indual worMrs penormlng such work Is dlsåosed to Texas MutUS/8M an Included In the premlumcala.laton of the
      named Insur If th named Insured causes 8 certifcae of Insurance to be Issued for the purpse of allowng the
      employees of a pernn oter than the named Insured to penorm worX at any job site where workers" compenson Is
      require, and such workers are not covere by worke~' copension Insrance, suc acton by the named Insure Is a
      materal brach of thl Insurnce policy end consutes frd upon TexiJs Mutus/SM
      8. The named Insured has appointed the agent whose name appa~ on th appIcaion as It agent In fael and agrees that
      any reresntions made on it behalf by that agent are the representat!ons of the named Insure.
      e. Accptnc of this paRcy wf ai endorement and tender of the deposi premium constitute the Insures agreeent
      WIh all of the term and condftons thereof, and the Insre's ackowledement of the obligation to pay all premIum due
      forthe poley.

               Thlc endon clges 1h pøicy to wt " Is ataeed afec on th in elte of th poli unu: . ci date Is Incled be.
                   (T folowng -itlltig e1us' ne be coet on wh ll erme is bs eu.q to prra of th poy.)
      This enOlei effec on                                                           at 12:01 A.M. slndnf time, for a pt of

      Polle No. TSF -0001120085 20040712                        of the Texas Mutal   Insurance Company

      Issued     to PORT ELEVATOR-BROWSVILLE LC                                             Endorsnt NO.

      PremiumS                                                                       ~lil ~Authorize Representve

                                                               l NSURED' S Copy                      JOPARKS          7-30-2004
  ...(                                                                         (
                                            TE WORKS' COMPENSATION AND
                                                 EMPLOYERS LIABilIT POLICY

                              MUTUALS - MEMBERSHIP AND VOTING NOTIE

                    The Insured Is notified that by virtue of this policy, he Is a member of the
                    T exiis Mutual Insurance Company, and is entited to vote either in person or
                    by proxy at any and all meetings of said Company. The Annual Meetings are
                    held in Its HomeOffoe, 221 W 6th Street Suite 300 Au~Un. Texas, on the
                    fourth Tuesday of June In each year, at 1 :00 o'ciock p.m. each year unless the
                    Board .01 Directors ofTex8s Mutal Insurance Company specifies otheiwse.


                    No Contingent lfabllity: This policy Is non-sssèssable. The policyholder Is a
                    member of the oompany and shalf partcipate, to the extent and upon the
                    condltfons fixed and determined by the Board of DIrectors In accordance wIth
                    the provIsions of law, fn the distributions of dIvIdends so fixed and determined.

         11 ~ chng '* po 10 ~ It Is 8t effec on tM Irn dae oflh po unes i dIer dat Is Ined be.
              (l folng "a cl- Me be CXpleted on wh th en 1$ ii seient to flep of 1h poic.)

l1 enorer efec on at 12: A.M. st li, fon . pa ot
Poll No. TSF-OOO 1120085 20040712 oftte Texas Mutuiiilnsurance Company
                                                                          Enrsnt No.

Premum    $                                                      ~JJ4"~ Autried Repreeftae

TM.2O (ED. 08)
                                              INSURED'S COpy                    JOPARKS        7-30-2004
                                    (                                                   (
    Jnui ûm
                                                 WORKERS' COMPENSATIN AND EMPLOYERS
                                                       LIABILIT INSURACE POLCY

                                                                                                               we    00 0000 A
                      In ret to the pa of the prem an s~ec to al tei of th po, we agee wi yo as folo:

                                                   GENERA SECTIN
A. The Policy                                                        C. Woens Compesaton La
    This policy Inetes at Its effece date the Inforon                    Worer copensaton Le means the worker or
    Page and aU endorsemen and schedules Ksed there. It                  woiken's copensaton la and occpatnal disease
    Is a coct nf lnsunce beteen you (the eiployer                        law of each state or terrory named In Item 3.A of the
    named In Item 1 of the Infonnatn Page) and us (the                   Infanellon Page. It Inetudes any amedmens to that
    insurer named on the Informon Page). The only                        law wh are. in effec during the poßcy perod. It does
    agreement relati to th insurce are stated In th                      not Inclde any feder woør or worn's
    policy. The tenns of this polcy tn not be changed or                 copesaon la, any fedeml occpatinal disease la
    walvèd exept by endorsemen Issued. by us to be part                  orthe provions of 8ny law that prde nanocepaUonal
    of   th policy.                                                     disabiit benefi. .
                                                                     D. Sbe
s, Who I. Insur
                                                                         stte means any $18te of thii Unied states of Ameñca
    You ørelnsured If yoo are an employer named In Item 1
    of the Infon Page. If ttt employOf 1$ a                              and the Distct of Columbia '
    paite(shlp, and if you are one of its parer, you are             E. Locons
    insurct but only in yo caac as an employer of the
    paiterhJ'i employee.
                                                                         This policy coin el of your wot1ace listed in Items 1
                                                                         or 4 of th Infoion Page; and It covrs all other
                                                                         WOaces In Item 3.A stes unless you have oter
                                                                         Insurance or are self.sued for such wolaces.

                              PART ONE - WORKERS COMPENSATION INSURACE
A. Ho This lnaurance Apes                                            D. We WILL Also Pay
    This workers copensaton Il1urance allpUes to bodil                   We wiU also pay these cost, In addion to oth
    Injury by acden or badDy injur by cJlsease. Bodify                   amount payable under th Inuranc, uspurt ot any
    Injury Indudes resultng deat.                                        claim procèding. or suit we defend:
   . 1. Bod Injur by acent mus oc dUring the                             1. reasoab,le exenses .         Inrred at our request, bu
           policy.pe                                                           no los of eamlngs;
                                                                         2. premiums for bonds to re/eass attclers and for
    2. SodPy IiJur by disease mus be caused or                                appet bonds In bond amunt up to the amoun
           aggravated by tfie condjtll of your emymnt
           The employ'$ last day of la exosure to th                          pable under this Insurnce
           codlns ~slng or aggra such boOy                              . 3. ntgatin co taxed against YOU;
           Inj\ by diseae mus occta duing the policy
           peód.                                                        4. Iner on a judgment as required by law unt we
                                                                              offer                due under   this Insuranc: and
                                                                                      the amun
B. We WILL Pay                                                          5. exses we Incur.
   We wi pay proy when due the benef requIred of                     E. ot Insuranc
   you by the WO cosaon law.
C. We Wilt Ded                                                          We v. no pa mo th ota sh of be an co
                                                                        co by. ti ii and Ðt inno or sØ
   We hav the right and dut to defd at our exe any                      in1J l3ij to any ii of fi~th ma app, al
   clak proing Of suit aga you for beefi                                $hes \\ be eq ui the 10S is If any Inince or
   payable by      this Il1urance We have the ñgli to                   $el IS tlus th of aØ nirú
   Irigate and see these claims, procedngs or sui.                      InstnWlI be equa unlll lo is pa
   We have no dut to defend a clai, pring or sui
   th Is not eoered by ths Insuranc.

WCÒO (ED. 11l0                                              1 ci5

                                             . "'êiioc:n' c- I"nnv                                                             ')°3
                                              (                                             (
 F. Paymnt Yeu Muat Make                                                       1. As beeo an Injur worker and us, we have
     You ar reslXnsble for any paymen in excess of the                             noti of tho Injury when you have notce.
     benefis regùlar1 proed by the woers copensatlon                          2. Your default or the bankiptcy or Inlvency of you
     law Incldíng thse required becuse: .                                           or your este wil not relieve us of our dutes under
     1. of your serous and will minduc                                              this Inurnce after an injury occur.
                                                                              3. We. are cfir)'. and primari liabe to any person
     2. you knowgly employ an employee in violaion of                               ented to the benefi payable by th ltsurce.
          law                                                                       1Àe peons may enfoce ou dutes; so mayan
     3. you fa to comly Wi a healt or safet law or                                  agen autored by la. Enforceent may be
                    relation; or                                                    8galnst us or against you and us.
     4. you diar, coerce or otheiw discrnate                                  4. Jurlsdlc:n ov you Is Juñset over us for
                    agains any employee in violati of tle workers                   purpses of the workers copesatn law. We are
                copensat law.                                                       boti by decions against you under that law
                                                                                    subj to the pl'lons of th policy that are not
     It we make any payments inexes of the benefs                                   In eoftct WI tlat law.
     regularl proved by the WOIXeN compen8t la on
     your behalf. you wi reiburse us pr.                                      S. This Insu confor to the parts of          the workers
                                                                                    compesaton law tlat apply to:
 G. Recery F!O Ot                                                                   a. bllefi pable by this Insuflnce;
     We hav you rfghts, iind the rights of pens ered to
     the benef of th$ Il\urnce, to recOV our payment                                b. spetal ta, paym Into seuil or oter
     from anyone liable for the injur. You wi do evlng                                    sPeI fundsi. and l!ssenments payable by
     nfIsa to proec those ngli fo U$ and to hèlp us                                       us under that 18.
     enforce          them                                                  - 6. Tfl of thIs IrsUr&llce that confict wi the
 H. Statry Proision.                                                                workn coensaton law are changed by this
                                                                                   . &temnt to confonn to tht la.
     These stements appl where they are required by law.
                                                                              Notg Tn these paragraphs relleves you of    your dutes
                                                                             undertli poIcy.

                                       PART       TWO- EMPLOYERS liABILITY INSURACE
A. How Thl$lnsurance Appli Ð. we WILL Pay
    Thls emploel'liobil Insurnce apples to boil Injur We Wllipay. ai sums you legaßy must pay as damges

    lriudes reullng death bodiy kj Is coered by this employer. fiabilit
    l; acoci or boIl inJury, by diseae. BodJy Injur becuse of bodil Injuito your employee. proved the

    1. The bodil InJuiy must arê out or and In the
                                                                             Insurnce. ..
               cauI" of the Injur employ's emoymen by The. d8fages we wlß pay, where rec Is pened
               you. by 1à, Inude damages
   . 2. The employment must be necesary or Incidentl 1. for Wh you are Dable to 8 third part b)' reason ot
               to your wo In a state or teror lis In Item 3A 8. cflm or suit agains you by th third part to
               of    the Inoron Page. recver the damaYies cialed agans such third
    3. Bodily iiur by acc!dent must oc duñng th part as 8 reul at njur to your employee
        poli perod. . 2. for cae and loss of seMce; and
    4. 80ily lnJ~ by dls88S.8 mus be. caus or 3.                                  for c:equenal bodily Injury to 8 spose, child
           l99ratf by th condits of your lIp1oymen . paren broter or siser olthe InJuied emloye; ,
           The emee's last da of las exure to the .
           conditonu causing . or aggrting such boily prded that these damages are the direc
           lnj1 by dlsS8se mus oc during the poScy coequence or bo~11y injUry that øies out of end in the
           pérod. course of the injure employ's employen by you;
   5. If you are sued, th orginal suit and any reated
           legal adins fo damge for b~ fAJuiy by 4. becuse of bodily Injury to your employee that
           aCcde or by disease must be broUQhf fr the ames out of and in the course of emPloyment
           Unled Stes of
                         or Callda. claied 8galMt yo
           poseson, Amca, it tenes oremployer. In a capadtater tIan as

WCO (EO. 11JO                                                     20t5
                                                    f t.. tbc,". eo ,.nDV
                                      l                                                        (
C.   ExclW!lone                                                                 We win Deend
     . This insurnce doe mi coer                                                We hav the ilht and dut to defend, at our exse
      1.    liabil assumed under   a c:ntacL Ths excluslon                      any cfim proceeing Of suit against you for daages
           does no = e warrnt that yout work v. be                              payable by this insunce. We have the riht to
           done In a nJlke manner                                               Investigate and sett these claim, procdIngs and
            f,unitive an exemplary damages becuse of bodily
             njur to or employee employed in violation of                      We hae no dut to defend a clim, proceeing Of suit
            law;                                                               that Is not cod by this insurnce. We hav no dut to
                                                                               defend or  conue defending aller we have paid our
     3.     bod~ Injui to en employee whoe employed in                          appl limit of liabil und th$ imiurnce.
           VIOL '00 of law v.th your actal knedge or th
            act knoedge of any of YOut execoflce;                         E.   We Will Alo Pay
     4.    any o~tion 'ied by a wor~ copensaon.                                We wiR als pay these co, in additon to other amunts
           occ onal ease, unemploymen co                                       payable under this Inuranc, as part of    any claim.
                                                                               proceIng, or sul we defend: .
           Cenaton, or dlsabUl ben law, or any simIlar
           aw                                                                   1. reasonable exenses Incurred at our request, but
     5.    bod Injury lnentiooaHy caused or aggravated by                               not los of earnngs;
           YOU                                                                 2.' pr for bondlt to releue attetents and         for
     6.    bodlY InJU~ ocrrg ouide the United Stes of                                appea bonds In bond amunt up to th limit of our
           Amenca. l teroris or pon8nlons, and                                       ß¡ill under this InsUfnce
           Canada. Ths exclusion does not a~ to bodily                         3. litatin cost tad against YOU
           :1Ut toe Cíen or resident of the n ed outide
           o Amerca or canada Who Is temporalyStates                           4. Intfn on a judgmen as regulred by law untl we
           these. countes;                                                           offer th amount due under this Imurace; and
     7.    dam: wing out of cocion cràs                                        5. e)(ans.ei we Incur.
           dem n, evluan. reanm d1sdplne.
           defamon harass humllãn, dlsmlon                                F.   ot Insurance
           8gal or. teimlnaton of any emplyee, or any
                                                                               We win not P.Y moe than our share of dages and
           peonnel prctce, polcies, ac or CKslons;                             cost coereä by this Insurl1 and oter Insurance or
     8.    bodi Injur to eny peron In wo suJed to the                          self-Insunc Subjec to any li of liabil that apply,
           Lo~ore and Harb Wotk8f' Comsation kt                                an shares WILL be equaf url the fos Is paid. If 80Y
           ~33 C Secon 001~O~ the N0:cprif                                     inslKce or self.O$\ is exusted, the share of an
             und Ins1melalltes kt ( USC S on8171-                              reminIng Inrace and selnsurance wI be eqal un
           8173). 1h Ouer Contnei Shel 18ndsPd ~                               th loss IS pai.
           USC Secton. 1331-13(), the Defene Bue                          G.   Umft of Uablft
             loe Healt 8.nd Ssây Ad. the Federl Coal
           Jj2 US Secons 1651-165i of 100 (30 USC                                                                 OUr nmi of
                                                                               OU /labili to pay for damages 16 limied.
           Secs 901-92), 8n~ ot fedenl Wò,. or                                 lIablX ate $l in It 3.B. of It Infonlón Page.
           woen" copensa. on Jaw or oter feeral                                They lfpply as exlaIned beow.
           th~.law; .
           oc~OIal disease law,      or any amendmen to
                                                                               i BodDy Injur by Acden The ßm sho for "bodily
                                                                                     Injry by aCccfent each aocent" is the most we will
     9.    bOdily 11Z to anr Jleron In work ~ec to the                               pay fo all damages coered by ths Insurance
           Fedentr ployer libil Ac (45 Secons                                        becuse of bodly Injury to one or moe employee
           51-6), any other fedei law oblet'i an                                     In anyone accdent
               . 1n:t aisfng oU of or In e co or                                    A disease b not bodRy Inlur by accldent unless It
           em or any emendmenl: to those lawi
           æt pay damøges to en ~ioyee ue to                                        resul direc from boly ìnjuiy by acden
     10. boil injury to. Ii nier or membe or the crew of                       2. Bodil Injury by Disse. The lim show for "bUy
           any veel .                                                               .lnjury by disea polcy liit is the most we win pay
                                                                                    for all damages. cored by this lnranc and
     11.   fines Qr penalt Imosed for \'atn of federl or                            ariIng ou of boly Inry by disease, redless of
           stae JaW; and .                                                          the number of enoYee YIo sust bodly Inury
     12- damages payable under the Migrant and Seasonal
                                                                                    by diseae. Th ft show fo "bdi liyury by
                                                                                    dlltea each employ" is th mo we Wl pay fOr
           Agltral WOler. Protec fJ (2 USC                                          all damges becuse of bod inju by disease to
           Sëc 1801-1872) and uner any oter ttlerl                                  BOY one empfee.
           law awaindemge fo violatn of those laws or
           regultins issue thereuder, end any                                       Bodil irlur by dlsease doe not Incude disease
           amendments to those law                                                  that resub dlrec from a bodtly I~ur by acden

WC (EO. 11l0                                                 30t5
                                              ....... ._.._._ """"f"\4'

                                     (                                                 (
     3. We wil not pay any claim for damages after we                    1. You ha coplied wih all the teims ofthÌ$ po6cy
          have paid th applicable fimi of 0l liabi under                     and
        this Insurnc.
                                                                        2. The amount you ow ha been deterined Wi our
 H. Reover From oter                                                         cosen or by actal tral and fial judgmen
     We have yor nght to recet our paymen fr                            l1 Insuranc doe not gi anyone the riht to ad us
     anyon liabl for an lntl covered by thIS Insurnce.                  as a clefenant in an acton against you to deterine
     You Wi do everhing neessary to protec those nghts                  your dablit.
     for us and to hel us enforc them
                                                                        The banknp1 or Insolency of you or your estate will
 i. Alon Agains Us                                                      not reliev U$ of our obligans urirthls Part

     Thre WILL be no nght of acton agains us under ths
     insurnce unless:
                                   PART THREE - OTHER STATES INSURANCE
 A. Ho Thlalnsurance Appllu                                             4. If you have wo on the effece date 01 this pocy
                                                                           . in any ste no listed in Item 3A of   the Infonatin
     1. This other staes Insurace applies only If one or                     Page coerge wiOno be afforded for that state
          more   stes are show In Item 3.C. of the                           unless we are notified wiin thrt days.
          Infomaton Pags.
                                                                     B. Not
     2. If you begin wo In anyone of those states after                 Tell us at onc if you begn wo In any ste lised In
         the efecte date of this pocy and are not Insed                 /tem S.C. oftt Infoimatn Page. .
         or are not saniur for suc work aft prons
         of the pOlcy win apply as though th ste were
         lised In Item 3. of the Infoion Page.
    3. We will reibure you for th benefit required by
         the workers compensaton law of that stte If we
         are not peied to pay the benefi dire to
         persons éned to tl

                                   PART FOUR - YOUR DUTES IF INJURY OCCURS
    Tel us at on If ~ur ocrs that may be coveed by                     4. CO wl us and assist lJ, as we may
    this pocy. Your oter dules are li hee.                                  r~ues In the Inveson setement or defene
                                                                            of any clim, pro~dini or suit
    1. PfOe for Imiate medic and oter serces
         reqwed by the workers coensonla.                              5. Do nofln uter en Injury ocrs that WOuld
                                                                            Inerer wi our right     to recver from iieni.
    2. GI us or our egent the names and addreSses of
         the Injued peons and of wiesses. and oter                     6. 00 not vounri make payments. aSlume
         Info~lon we may nee .                                             obØgans or InÇU exens8$, excep at your own
    3. Prompy gi us aU notces. demands and legal
        . ~ relaled to th Injury, clim, Pron9 or

                                               PART FI - PREMIUM
A. OUr Manuab                                                        c. Rlun.on
    Al premlum fo th poRcy wiD be detenined by our                     Premum fo each woi1 classea Is deterne by
    manu. or rule, mas ratig plans and dassitcaons.                    muJyg . me ti a preum basi Remuneron
    W. may change our manuals and appl the chanes to                   rs th most con premum basis. this premum basi
    this POie lf autored by law or a govermental agency               . Include ~yroll and 81 oter remuneon paid or
    regulet 1h1s insurnce.                                             payable dUlÚg the poley pe forthe SeM of:
B. CllIlltatons                                                        1. aU yo ofce and emloyee enaged In work
    It 4l of the inforaton Page shOW the rø~ and
                                                                           çaed by th poll end
   prlum buls fo cen business or wo                                    2. all oter perons engaged In work 1h coul make
   classifcaon. These c1ssllons we assigne                                 us liabl uner Pert Oíe (Woners Coensan
   bas on 8n .ese of the exosures yo would ha                              Insurnc) ofths poicy. If you do no ha paol
   duñg the policy peod. If your actal ~osures are not                     recrd for these peons, the contact prt for
   propert decrbe by those classifns. we wiD                               thei ier and maerls may be used as the
   assIgn proper clsscaon, rates and premium basis                         premum basi. Thjs paraRiph 2 wi not appl If
   by endorsemen to lhjs poficy.                                           you gle us Proof tht th employer of tleie
                                                                           perns laWly sered their woters
                                                                           copensaton obUgallons.

WC (ED. 11l0                                              40fS
                                             . Lie. iacn' C' ,.nov
                                                  (                                                     (
 (    D. Premium Payen                                                                 2. If you canc, final prem wiD be mOl. e than pro
           You Wil pay all premium when due. You WILL pay the                               ra It win be based on the tie Ui pocy was in
           preium ev if part or aU of a workers copematon                                    forc, and Increas. ed by our shor rae cancelatkn
                                                                                             table an prdure. Rnal premum ..\1 not be less
           law is not valld                                                                  thn the minImum premium
      E. Flnal Preum                                                               F. Recs
           The premum sho on the Infuaton Page,                                      _ You wil kee rerds of ilormon neted to compute
           schedu\e, and eror&ements is an estimae. The finaf                          premium. You wiU pravde us wi copis of those
           premum will be determine afer thl¡ ~lcy ends by                             recds when we ask for them.
           using the act~ no tle esed, premium basis ana
          the pr dassican& and raes th lall apPy to                                G. Audit
          the bUsiness and. work cove by thIs poUc;. ff th finaf
           preiu Is more tlan the preium yo paid to us, you                            You wU le us exmie and audit aN your recrds th
           must pay us the balance. If It Is less, we win refund                       refate to tls policy. These recrds Include lèdgen
          balanc to you. The final premum wil not be less than                         JOumals, reisers vouche, conct, ta rep
          the highes minim premum for the classicaons                                  p8yroU and dlsbUfem. ent recrt, and progråms for
          covered by ths policy. -                                                     stoñng and retmng da We may couc lte audits
                                                                                       dutg regular buInes hours duri the poDey peod
           If this policy Is canceed, fial premium WILL be                             and Wln three years after the pOicy peòoè ends.
          deterned ii the follog wa unless our manuals                                 Infotion develped by audit wil be use to detne
          provde othere:                                                               final premium Insunc rae selVe organizOM have
                                                                                      the same ñgh we havo under thli prlon.
           1. If we cance IInaf premum wi be cak:ated pro
               rata based on the tie th polic was In foce.
               FIal premum wi not be less thn the pro ra
                 share of the minimum premium.

                                                                   PART SIX - CONDITIONS

- (
      A. Inspe                                                                     D. Canceat
         , We have th!! right but are not obUged to Inspec your                       1. You may cancel this policy. You         muSt mail or
          workace at any lime OUr Inspectons are not safet                                  deliv advnce notllo Us stng"when the
          In~ns. They reate only to th lnsublli of tl.                                      canceation Is to. take efec '
          worlces and the premJu to be charged. We rT
          giv you report on the condlloil we find. We may also                        2. We may cance ths poicy. We must ma or deer
          remend ctl1gø. While they may help rèuce                                          to you not les:5 than ten days advnc wren
          tos we do not und8lke to peí0n the dut of an                                      noti stting when the cat:aton Js to tae
          penon to prc:e fo the heafU or safet of your                                      effeç Malling that noe to you at your maifng
          em@foyees or the pubic. We do not want ,that your                                 8~dress show In Item 1 0( tfe Infortion Page
          wol1sce lire safe or hea or1lat ~y coly WI                                      will be suffcien to prve notoe.
          la~ regulll, co or stndards. InsranCe oite                                  3. The polley period will end on the day- and hour
          tierce organizti have th same nght we have                                        $led In the cancelaton notce.
          under th provon.
                                                                                      4. Any of     these provisIons that conlldi wf e law that
      B. Log Ter Policy                                                                    coli the cancaton of the Insurenca In thIs
          If th pol per Is loger than one year and siee                                    poll Is changed by th statement to copi wl
          days, all prololl of ths poey wl appl as thouh a                                 the    Ja.
          new pafley were issued on each annualannlveraiy th
          this poli Is In force
                                                                                   E. Sole Reta
                                                                                     The Insured' firs naed In Item 1 ot the Infonon
      C. Transfe of Your Rifm and Dut                                                Page wi act (lÍl behalf of aU Intiureds to chnge th
          Your right or dutes under ths poicy may not be                             polley, receie retrn premium and give or reoe
          trnsered wfout ou wren consen                                              notce of cancelatn
          If you dfe and we récei notce wln'tlrt daYs afer

          Insured. '
          your deah, we wiN cover your legal reesentate as


      WC (EO. t11l                                                       5015'
                                                              IN~lltli:n'~ r:npv
        . . 4l                                                                                             (
          . Inur Ca
                                                               WORKERS' COMPENSATIN AN EMPlOYES
                                                                    UABfllTY INSURACE POlCY

                                                                                                                                we   00   0406
                                                           PREMIUM DISCOUNT ENDORSEMENT

         Th prmIum for this poney and the poßcies, if any, listed                     in Item 3 of the Schedule may be eßglble for a discont This
         endorment show your estmated discunt in Item 1 or 2 of the SCedule. The final calcuation of prmium discunt will
         be detennlned by our manuals and your premium basIs as detennined by audit Preum subject to retrpeive rang Is
         not subjec to preium discun


                                                                      Esimated EIlble Premium

        1.         ~


       2. Average percntage discunt                                   p.OO
       3. Oter Po6ces:

             policy number: .
      4. If there are no entes 10 Items 1. 2, and 3 of the Schedule see the Premium DIcount Endorsement atched to your

             Tl eiom chng th po to wt k b al elf on th fnn di. of                                    th po un86 a dllen dæ.is h1ed be.
                   (T fo'atadln c1us~ nee be coll 0Ñ vdtn ih encltn Is Is ~en to Jl of th po.)

     Th enom elfec OI                                                                      1l12: AN ÅI lie, f( . pa or
     Polcy   No. T8F-0001120086 20040712 of                     the   Texas Mutal      Insurance Company

                                                                                                   Endorsemnt No.

     wc~s (ED. 1-94)
                                                                                                   Autored Reprente

                                                          INSURED'S COpy                             JOPARKS          7-30-2004
    d.(                                                                                        (
J    1èxaut
      . . JnCo
                                                           TES WORKERS' COMPENSAnON AND
                                                              EMPLOYES UABIUJY POICY

                                                                                                                  WC42 03 01 F
                                                     TEX AMENDATORY ENDORSEMENT

     This endorsment applie only to the insrance pred by the poPey beus Texas Is show In Item 3A of the
     Intonnation Page.

                                                                    'GENERA SECTION
     B. Who Is Insured Is amended to read:
           You are Insured  If you are an employer named In Item 1 of Ute 'nformatlon Page. If that employer Is a partership or
           Joint venture, and if you are one of It partelS or members, you are Insre, bu only In your capaci as an employer
           of the partnershlp's or joint venture's employee.
     D. Stae Is ameed to red:
           State means any state or tenioJY of the United Stat8$ of Amenca, and the Dfsti1d of Columbia.

                                            PART ONE. WORKS' COMPENSATION INSURACE
     e. Other Insurance Is amended by adding this sentence:

           This section only applies it        you have other Insurance or are self-Iured for the same loss.

     F. Paymnts You Must Make
          This section is amended by deletng            the words "Wer compensUoo" fr number 4.
     H. Stautry Provision

          This seon Is amtùided by deleting tte words "after an Il1ury occr. fro number 2.

                                                PMT lW . EMPLOYiS UAIUT ImURANce
     C. Exclusions

          SecUns 2 and 3 are amended to add:
          This excluson does not appl unles the violaton of law caused or ooninbuted to            the boly injury.
          Sectn 615 amended to read:

          6. Boil Il1ury ocrrg oute the United States of America, It terori or possssions. and canada. This
                 excluson do not appy to boil lnjuJY to a ciizen or reen of the United states of America Me or
                 Cana who Is temponly outide thes countes. .
    D. We Will       Defend
          ThJs seion Is amended by deleting the last sentence.

    WC42OSOf f (l-OI-%O                                                     Page 1 of3

                                                                                                                      \ 289
                                             (                                                (
                                               PART FOUR - YOUR DUTES IF INJURY OCCURS

      Numbe 6 of this part Is amnded to read:
      6. Texas law allow you to make weekly payments to an Injured employee In certain insanc. Unless autried
            by iaw, do not voluntanly make payment. asume obligations or incur exnses. except at your ow cost

                                                              PART FIV - PREIUM
  A. Our Manuals are amended by addng the sentence:
      In thi part, .our manuals" means manuals appved or prbe by the Slate Board of Insurance.
  C. Remuneraon
      Number 2 Is amended to read:
      2. Al other persns engaged In work that would make us liable under Part One (Worers Compensatin
            Insurance) of this policy. This paragraph 2 will not appl If you gIve us prOf tha the employers of these pens
            lawully secure workers' copensUon insrance.
  E. FInal Premium

      Number 215 amended to read:
      2. If you cance, final prmium WILL be calculated pro raa based on thè time this policy was In forc. Final prium
            WILL not be les than the pr raa share of the mfnimum prmium. . .
                                                           PART SIX -CONDmONS
 A Inspeon Is amended by adding th sentence:
     Your fa.llure to compl wf the safety recommendations made as a result of an Inspection       may cause the policy to be
     canceië by us.
 C. Traer of Your Rights and Dutes Is amended to re:

     Your tiht and dutIes under this policy may nottl transferr wihout our wren consent It you dIe, covera WILL
     be prded for your suivng spouse or your legal reprive. This applies only wih respeçt to thelnlcUng In the
     capacly as an employer and on for the worklace lied In Items 1 and 4 00 the Infoonatn Page.
 D. Concellatn is amend to read:
     1. You may cancel this peRcy. You must mall or deliver adance notce to us stating when the cancellation Is to
         take efec
     2. we may cance this pollcy. We may als declne to renew it We mus gIVe you wren nouc of canceaton or
         nonreoewl. That notice wi be sent ceed maR or deliered to you In persn. A copy of the wren not WILL
          be sent to the Texas Worers' Copen Comison.
     3. Notce of cacelation or noorenewl must be se to you not later than the 30t day befor the date 00 whic
          the cancellaon or nonrenewl bee effecte, except that we may sed the notk no later than the 10t day
          before th date on whlcl the cancellaton or nonrenewal bemes effctlf we cance or do not reew
          a. Fraud in obtafnng coerae;

         b. Misrpresentation of the amount ot payrll for purp of premium calculaton;
         c. Failure to pay a premium whn payment wa due;

WC420Utf It-Il-:i1                                                     Page2of3

                                                          ~                                                          (
                             d. An Incas In the hazrd for Which you seek coerae that result from an acton or omisn and that
                                  would produce an Incrase in the rate, lnduding an incase beuse of fanure to comply wih reasnable
                                  recommendatns for loss contl orto comply wihin a reasonable period wi recomendations designed
                                  to reuce a hazam that Is under your contr;-

                             e. A deternaton by the Commisoner of Insurance that the contuation 0( the pocy would place us In
                                  violaton of   the law, or   would be hazrdou to the interes of subsbers, creditor, or                the general pubUc.

                      4. If another Insurance company noties the Texa Wor1er Compensaton Commssion that It Is Insuring you as
                            an employer, such notice shall be a cancellation of this policy effec when the oterpoHcy start.
                      Part seen has been added as follow:

                                                  PART SEV - OUR DUT TO YOU FOR ClAM NOTlACATlON

             A. Claims Notifcation

                      We are requir to notif you of any dalm that IS filed against your policy. Thereafter we shallnótff you of any
î                     prposal to sete a claim or, on receIpt of a wren request fro. you, of an admlnisve or judidal proceeding
                     reng to the resolution of a claim. Includin a benefi revi conferenc conducted by the Texas Workers'
                     Compensation Comission. You may,                 I" dog. elec to waive this notcaUon reuirement
                     We shall. on the wren reques from you, prode you wf a list of claims charged against your polley, payment
                     made and reserves esablished on each claim, and a sttement exalnlngthe effec of claIms on your premium
                     raes We mus fumlsh the requesed Infonnatfn to you In win9no later                            than the 30t day afterthe date we reive
                     your reuest The Infonnaton Is consider to be prvided on th date the Infomiallon Is receåd by the United
                     states Postal servce or Is persally deUver.
            IS NOT RESOVED. YOU MAY ALSO WRIT THE TES DEPAR                                                 OF INSURANCE, P.O. BOX 149091, i
            AUSTIN, TES 78714-9091.                   FAX # (512) 475-1n1. THIS NOTCE OF COMPLANT PROCEDURE                        IS FOR'

                     11 enOl clll th po to wl 118 ai effec on lt lnon dae of ll po un . dfer dle Is kied be.
                            (T folng .atøc etus ne be copleted on "r this enckmen Ì$ hi sui- to prepon of th po.)

           Th en. eleç on                                                                          at 12: A.M. 6I Ume. ro . pa of

           Polic No. TSF-OOOl120085 20040712 of                        the Texas Mutuallllce Company

                                                                                                             Enornt No.
           Premium      $
    !' .

                                                                                                            Auored Repent
           Yt -4 03 os f 11 - 01- 20                                       . Page        3 ot3

                                                                       .ue:llDcn.C" t"nov                            "l,nnAnvc.   "'_"n_""nt\~
                                                                                                                                                 ".   291
 . . (                                     WORKERS' COMPENATION AN EMPLOYERS
. 1èxaMutual
                                                UABIUT INSURANCE POlCY

                                                                                                 WC     42   03 08

  The policy does not cover bodily Injur to any persn descbe In the Schule.

  The premium bais for the policy does not incude theremuneraon of such peons.

  You wil reimburse us for any payment we must make beus of bodily Injury to such persns.


  OU i C8 , (i )                CRAIG ELKINS, VICE PRESIDENT
                                PETE RETElAFF, PRESIDENT

     Th en eles Ui po to wt .is etht tfeee on tl Inpton date or th poy ii . dier dae Is lred below.
          (T fong 'alacng ci- ne be copled on v. this enen fi fs lI.(o pron of Ui po.)

Th enom ettec on                                                at 12: A.. sl ti, foi a pa of

Pol No. TSF-OOO 1120085 20040112 oftheTexas Mutal Insunince Company
                                                                       Endorst No.
                                                               ~lJ1- ~Autoni:ed Representa
WC2030B (E. 1-97)

                                           f NSURED i S COpy                  JOPARKS       7-30-2004
l -1è
                                            WORKERS' COMPENSATI

                                                      ~ar INSURACE POUCY
                                                                             AND EMPLOYERS

                                                                                                     WC42      0404

  This polic is ised subject to a Group Purc Program autoñed under Aricle 5.57A, Texas Insuranc Cod. The
  prmium for this poUcy and other policies, certlfed In accrdancwlh the Certe of Approal, spcied In the
  Schedule, may be eligIble for premium disCO. The detennlnation of premIum discnt WILL be mad In accrdnc wih
  manual rules.


  Certificae of Apprval Number


          Th enoren c:llih poio to whle It 1& at eted 0l1l mtpth lHe of th po un a dllfetdele Is Jred bel.
                 (T fong "lad GI~ need be copled on Mici lh endoen i. ie subs iO prepinon of th po.)
 This enor etec on                                                     all2:1 A. i; li. fo i pa õf

 PoKcy No. TSF -0001120085 20040712 of       the Texøs MutuallmnJnince Company.

                                                                             Endrst No.
Premum       $

                                                                             Aulhonted Reprenta
WCi0 (EO. 1-8)
                                                INSURED'S COpy                     JOPARKS     7-30-2004

                                                                                                            '-. 283
. 0'. ( (
           . InwaCa                                                                             we 420407

                                               TE - AUDIT PREMIUM AND
                                       RETOSPECTI PRMIUM ENDORSMEN

              Section Dof Part Five of the polley Is replaced by the following provision:

                                                    PART FIV - PREMIUM '

              O. Premium Payments

                       You wfl pay all premIum when due. You WILL pay the premium even If part or all of a
                       workers' compensation law Is not valid. The biling statement or Invoice for audit
                       addltonal premIums and/or retrospectve additIonal premIums establishes the date that
                       the premium Is due.

           'T enor ctnges 1t po to ~ It Is ii erreclv on the Inn date or lIe po unl II ~ dae 1$ Jned beow.
                 (T foXng "al clus- ne be copleted on v. lh endo Is ts ~ to prepllon or th po.)
 TI timeer effec on                                                  at 12: A.M. ei li fo II pe Of

 PolicNo. TSF-OOOl120085 20040712 of           the TexlI Mutal   Insurance Company

 Premium     $
                                                                        ~/L  Endoraemnt No.

                                                                               Autorized Repreentve

 WC42 (Ed. 3-2320
                                                 INSURED'S COpy                      JOPARKS    7-30-2004


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