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, - 7- <br /> M. Fines and Penalties - GB shall not be responsibie for any fines or penalties assessed by any governmental <br /> agency because of the acts or omissions of the CLIENT, or by previous or successor claim administrators. <br /> N. Solicitation of Employees - CLIENT agrees that, during the term of this Agreement and for a two�year period <br /> thereafter,CLIENT shall not,without the consent of GB,solicit to hire,or hire any employee of GB who,during <br /> the term of this Agreement,has performed,or contributed to the performance of,services hereunder. CLIENT <br /> further acknowledges that the damages suffered by GB as a result of a breach of this obligation would be <br /> significant but not susceptible of easy calculation. Accordingly, in the event of a breach of the aforesaid <br /> obligation,CLIENT agrees to pay GB an amount equal to one hundred fifty percent(150%)of such employee's �I <br /> annualized salary amount at GB as of the date of breach. <br /> O. Risk Control Consulting-With respect to any risk control consulting services,including any form of inspection , <br /> service provided by GB to CLIENT: ' <br /> 1. Such services shall be in the nature of advisory to the CLIENT only and shall not be construed as <br /> imposing upon GB any duty to implement any recommendation made by GB or to otherwise ensure that <br /> any premises,equipment or other subject matter of a GB consulting service is safe or free from hazards <br /> or defects; <br /> 2. Such services shall be solely for the benefit of CLIENT and shall not be construed as creating any duty <br /> to,or conferring any right to,any third party,including without limitation,any duty to warn any third party <br /> or the public at large; <br /> 3. CLIENT shall make no communication to any third party concerning the role or nature of GB's services <br /> without the prior consent of GB. <br /> 4. If GB fails to complete the contracted Risk Control Consulting Services during the term of this Agreement <br /> due to the CLIENT's failure to cooperate with GB's service delivery objectives, then GB will have an <br /> additional six(6)months in which to complete the contracted services. If the CLIENT fails to cooperate <br /> with GB's service delivery objectives during such six(6)month period,then GB's obligation to complete <br /> the contracted services will be deemed to be fulfilled and CLIENT shall not be entitled to any refund for <br /> services not provided. If for any reason other than CLIENT's lack of cooperation, GB fails to complete <br /> the contracted services during the term of the Agreement, then CLIENT, at its discretion, may either <br /> receive a refund for that portion of the contracted services which were not completed or may extend the <br /> term for completion of the contracted services by a period of six(6)months. <br /> P. Records Retention - GB will retain claim files for 24 months following date of closure. Thereafter,files will be <br /> returned to the CLIENT or forwarded to such location as may be designated by the CLIENT for continued <br /> storage. GB will retain hard-copy checks for 24 months following the date of bank clearance. Thereafter, <br /> copies of checks will be maintained on microfiche. <br /> Q. Subroqation-To the extent GB is involved in pursuing recoveries against third parties or otherwise undertaking <br /> subrogation activities on behalf of CLIENT, GB is authorized to collect, in the name of the CLIENT or in the <br /> name of GB, all funds due as a result of such recovery or subrogation activities. GB shall not be required to <br /> establish any trust accounts for the benefit of CLIENT, but shall promptly and fully account for all funds so <br /> received. <br /> R. Taxes - CLIENT shall be responsible for payment of all applicable sales, use, ad valorem and excise taxes; <br /> duties;and assessments relating to the services provided hereunder. CLIENT shall hold GB harmless from all <br /> claims and liability arising from CLIENT's failure to pay such taxes. <br /> S. Non-U.S. Dollar Transaction - In the event that GB handles any non-U.S. Dollar claims, CLIENT shall be <br /> responsible for any rate fluctuations. <br /> 06\cq1\Decatur,IL,City of-000322.doc <br />