R2007-236 AUTHORIZING AGREEMENT WITH BLUE CROSS BLUE SHIELD OF ILLINOIS

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.' � r+c_� � ` � C�1III3I'I'3 RGCOVLRY LI'I'IGA'1'ION AU'1'I-IORI'LA1'lON "f'he I�mployer hereby�cknowledges and agrees ihat the Claim Administrator may,at its election,pursue claims of the Lmploy- er ancl/or Ihe Pian,which �re related to claims that Ihe Claim /�dministrator pursues on its own behalf,subject to the following tcrms and conditions: (.1 'I'he Claim Administrator shall have the right to select and retain legal counsei. 1.2 Any lawsuit filed or arbitration initiated by the Claim Administrator will be done in the name of the Claim Administrator for ils own benefit,as well on behalf of the Employer and possibly other parties.The Claim Administrator will not cause any litigation to be filed or arbitration to be initiated in the name oi the Employer and/or the Plan without the Employer's express advance consent. With such permission, any such litigation can be filed or arbitration initiated in the name of the Employer and/or the Plan with attorneys identified as counse] for the Employer or in the name of two or more parties, including the Employer and the Claim Administrator,with attorneys identified as counsel for the Employer, the Claim Administrator and possibly other parties. 1.3 The parties agree to cooperate with each other in pursuit of recovery e'fforts pursuant to the provisions of this Exhibit, including, providing appropriate authority to communica[e with the Employer concerning issues pertaining to any class actions and pursuan� to which the Lmployer specifically declines representation by class litigation counsel. 1.4 The Claim Administrator shall control any recovery strategy and decisions, including decisions to mediate, arbitrate or litigate. 1.5 1'he Claim Administrator shall have the exclusive right�o approve any and al1 settlements of any claims being mediated, arbitrated or litigated. 1.6 Any and all recoveries, net of all investigative and other expenses relating to the recovery, including costs of setdement, mediation, arbitration or litigation including attorney's fees, made through any means pursuant to the provisions o1�this Exhibit, induding,but not limited ro,settlement,mediation,arbih�ation or trial,will be prorated based upon each party's percentage interest in the recoverable compensatory monetary damages,which allocation shall be done by the Claim Ad- ministrator on any reasonable basis it deems appropriate. 1.7 Any and all information,documents,communications or correspondence provided to or obtained by attorneys from either party,as well as communications,correspondence,conclusions and reports by or between attorneys and either party,shall be and are intended to remain privileged and confidential. Each party intends that the attorney-client and work product privileges shall apply to all information, documents, communications, correspondence, conclusions and reports to the full extenl allowed by state or federal law.The Claim Administrator shall be permitted to make such disclosures of such privileged and confidential intbnnation to law enforcement authorities as it deems necessary or appropriate in its sole discretion. The Employer shall not waive the attorney-client privilege or otherwise disclose privileged or confidential iniormation received in connection with the provisions of this Exhibit or cooperative efforts pursuant to the provisions of this Exhibit without the express written consent of the Claim Administrator. 1.8 The discharge of attorneys by one party shall not disqualify or otherwise ethically prohibii the attorneys from continuing to represent the other party pursuant to the provisions of this Exhibit 1.9 Nothing in the provisions oi'this Exhibit shall require the Claim Administrator to assert any claims on behalf of the Em- ployer and/or the Plan. 1.10 Nothing in the provisions of this Eahibit and nothing in attorneys' statements to either party and/or the Plan will be ; construed as a promise or guarantee about the outcome of any particular litigation, mediation, arbitration or settlement '� negotiation; therefore,the Employer acknowledges that the elforts of tlie Claim Administrator may not result in recovery or in full recovery in any particular case. 1.11 "I'he terms and conditions described herein shall survive the expiration or termination of the Agreement; however, nothing herein shall require the Claim Administrator to assert any claims on the Employer's and/or the Plan's behalf following the termination of the AgreemenL If the Agreement is terminated after the Claim Administrator has asserted a claim on hehalf o1'the Gmployer and/or the I'lan but before any recovery,the Claim Administrator may in its sole discretion contin- ue to pursue the claim or discontinue the claim. i icsc u,ns�rt��-.�!a� -30-