|
1
<br /> f `
<br /> t. I
<br /> -p..�•J:. ..j:• v•r.t�...'?f: :V •.N t.. qr . '1�/.••1 (5.t1.`1T ��Y�ia \.•.. •,.�,5%f,F•'irNi':i
<br /> e�py�.�.,�
<br /> M,
<br /> proposal
<br /> -!gib tr !A,. .<N�Yc� •v;a' ''� (S'�fw „ :^W17;r y7'7,.'+r^y,., ✓ .61R8,1��1.1'; 1
<br /> Pro osal o£Insorance£ori
<br /> i
<br /> Gallagher Compensation Agreement
<br /> r^,„adaaNtv�u�,r.¢? aarn�:�•�:�r '
<br /> THIS COMPENSATION AGREEMENT is made and entered into and effe,i f S'06A
<br /> ("Effective Date")by and between CiTY OF DECATUR,an Illinois co i and ARTHUR J.
<br /> GALLAGHER RISK MANAGEMENT SERVICES, INC,,an Illinois cord a lagher). ;
<br /> 1. TERM AND TERMINATION
<br /> This Agreement shall commence on the Effective Date for a to yea aiicaily renew
<br /> on the first anniversary of the Effective Date and annually the reaftI ltw teas but ryX bg,,
<br /> terminated by either party at anytime upon one hundred twenty(12 + 'X
<br /> Il. OBLIGATIONS OF GALLAGHER
<br /> Gallagher will provide the services set out on Exhibit A attached hereto(collectively,the"Services")to Client. If
<br /> the Services include the placement of insurance coverages,Gallagher will use its commercial best efforts to
<br /> secure such insurance coverages on Client's behalf. In the event an insurance company cancels or refuses to
<br /> place such insurance coverages,Gallagher will use its commercial best efforts to obtain the coverage from
<br /> another Insurance company.
<br /> ill. OBLIGATIONS OF CLIENT
<br /> Client shall remunerate Gallagher its usual and customary brokerage commission for the Services. In addition to F
<br /> or in lieu of commission,Client shall pay Gallagher an annual fee of$67,500 for the Services,which such fee may
<br /> be revised at the time of renewal of this Agreement by the execution of an amendment to this Agreement signed
<br /> by the parties hereto. if work is required to be performed In addition to the Services, Client agrees to compensate
<br /> Gallagher for such additional work at its usual and customary rates. So long as the terms and conditions of the
<br /> Services are substantially similar and Gallagher's performance is acceptable,in subsequent years the annual fee
<br /> shall be increased-_%over the prior year,and shall be payable and earned as provided herein.
<br /> IV. DISCLOSURES
<br /> r
<br /> A. In addition to such fees and commissions provided herein,Gallagher may also receive Investment income on
<br /> fiduciary funds temporarily held by it,such as premiums or return premiums.Other parties,such as excess
<br /> and surplus Hnes brokers,wholesalers, reinsurance intermediaries, underwriting managers,captive managers
<br /> and similar parties,some of which may be owned in whole or in part by Gallagher's corporate parent, may
<br /> earn and retain usual and customary commissions and fees in the course of providing insurance products to
<br /> clients.Gallagher may also participate in contingent and supplemental commission arrangements with
<br /> insurance companies.Contingent commission arrangements provide for additional contingent compensation
<br /> if underwriting,profitability,volume or retention goals are achieved. Such goals are typically based on the
<br /> total amount of certain insurance coverages placed by Gallagher with the insurance company, not on an
<br /> individual policy basis.Supplemental commissions, unlike contingents,are known at the effective date of the
<br /> policy,but are typically paid later and apart from when usual and customary commission Is paid.Any such
<br /> fees or commission will not constitute compensation to Gallagher under Section i1I.above.
<br /> B. Gallagher's fees under this Agreement shall be fully earned on the execution of this Agreement(and any
<br /> renewal thereof),and payable on invoicing.Client is responsible for payment of premiums for all insurance
<br /> placed by Gallagher on Its behalf. If any amount is not paid in full when due, Including premium payments to
<br /> insurance companies,that nonpayment will constitute a material breach of this Agreement that will allow
<br /> Gallagher to immediately terminate this Agreement,at its option,without notice to Client.
<br /> Arthur 1.Gallagher Risk Management Services,Inc., i
<br /> a
<br /> DCN DMS 8/90/11 47 _ , 47 i
<br />
|