PERTH PROBUS CLUB

                                                            JUNE 2010

                            REPORT TO THE GENERAL MEMBERSHIP

            RE; PROPOSED DIRECTORS AND OFFICERS LIABILITY INSURANCE

            BACKGROUND

                        1) Whereas a number of Probus Clubs in British Columbia have expressed a concern regarding the lack of protection afforded to Directors and Officers of Probus clubs (Management Team) against potential lawsuits initiated by Probus Club Members resulting from the execution of their duties and responsibilities.

                        2) Whereas Probus Club Centre-Canada Inc., does provide as part of our annual remittance Third Party Liability Insurance for our Club and you as individual members should an action be taken against you by an outside party for some incident during a regular ongoing activity. (Damage to property, etc.)

                        3) Whereas Probus Centre has on behalf of all Probus Clubs in Canada in conjunction with the Probus insurance carrier, Co-operators developed a Directors And Officers Liability Insurance (D&O) policy for those local Probus Clubs who wish to participate in this type of coverage at an annual premium of approximately $500.

                        4) Whereas it is recognized not all local Clubs will express an interest in participating, a minimum of 18 Clubs must agree to sign up in order to benefit from the group premium offered by Co-operators on or before July 31 2010. Otherwise individual Clubs could secure such insurance coverage on their own at an estimated premium of probably in the order of $ 1000 per annum.

                        5) Whereas D&O Liability Insurance would provide to the members of the Management Team protection against various actions/claims initiated by Probus Club Members, such as but not limited to Libel, Slander, or Defamation of Character, Invasion of Privacy, Wrongful Entry, Eviction, Infringement of Copy Right, Plagiarism, any or actual Loss on Account of any claim, any Wrongful Act arising out of the Distribution of Data on the Internet Website, the Internet or other Electronic Communication of Data.

                        6) Whereas as a result of discussions with Probus Centre-Canada Inc., and the Co-operatives Agent and taking into consideration the insurance “Claim-Free” record to date of all Probus Clubs across Canada and having assessed the nature and scope of the Probus activities vis-à-vis the probability of such risks as described in Item 5 occurring while carrying out those activities the Management Team considers the risk to be minimal. Therefore the purchase of D&O Liability Insurance by the Perth Probus Club at this time is not recommended.

                        7) Whereas the Management Team does recognize the ever increasing litigious nature of Canadian society. Therefore it is proposed that a “Waiver Form” be introduced where in all Probus members willingly participating in Probus sponsored social activities be require to sign. This Waiver or Release of Liability form could stipulate that the member and their heirs, etc., hereby release the Probus Club of Perth, its Directors, members, and volunteer leaders from all claims and demands for any loss, damage, or injury, however caused.

            RECOMMENDATIONS

                        Therefore, be it resolved that the Management Team recommends the following to the General Membership:

                        A That the Probus Club of Perth decline the invitation from Probus Centre-Canada Inc to participate in the proposed DIRECTORS AND OFFICERS LIABILITY INSURANCE program as outlined in President Gordon Springate’s letter of May 7,2010 at this time.

                        B That the General Membership of the Perth Probus Club authorize its Management Team to develop a “RELEASE OF LIABILITY’ FORM for required signing by all participants of Club social activities.

            RESPECTFULLY SUBMITTED

            THE MANAGEMENT COMMITTEE