R91-118 AUTHORIZING AGREEMENT - GALLAGHER BASSETT SERVICES, INC.

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� - -5- ' SCHEDULE III TERMS AND CONDITIONS A. Settlement Authoritv - The limit on any settlement payment by GB shall be TWO THOUSAND FIVE HUNDRED Dollars ($2,500.00). This amount may be changed by the CLIENT upon written notice to GB. It is agreed that GB shall have full authoriry in all matters pertaining to the payment, processing, investigation and administration of qualified claims on losses within this limit. Failure of GB to settle a qualified claim or loss within such limit shall not subject GB to liabiliry to any party in the event of an adverse judgment entered by any court or the settlement of such claim or loss for an amount in excess of such limit. B. Terms of Cancellation or Nonrenewal - Either party shall have the right to cancel or renegotiate the contract after the initial one-year period by giving the other party written notice of intent to cancel or renegotiate at least thirty (30) days in advance. If timely notice of cancellation is given, this contract shall terminate upon the expiration of the current term. In the event of cancellation or nonrenewal of this contract, GB will continue to manage all pending claims, and claims occurring but not reported prior to the date of termination, at a fee to be determined. A reduced RISX—FACS� reporting package will be provided as long as GB handles the claims. If the CIIENT fails to pay GB's service fee, GB shall have the right to terminate the contract by giving the CLIENT ten (10) days' notice in writing. GB will then return all files to the CLIENT in an orderly manner. C. Practice of Law - GB will not perform any services which may constitute the unauthorized practice of law. D. Mutual Indemnification - GB agrees to defend, indemnify, protect, save and keep harmless CLIENT from any and all loss, cost, damage or exposure arising from the negligent acts or omissions of GB. CLIENT agrees to defend, indemnify, protect, save and keep harmless GB from any and all loss, cost, damage or exposure arising from the negligent acts or omissions of CLIENT. E. Notices - Any natice required to be given under this contract shall be sent by certified mail to the following in the case of GB: Jack H. Lazzaro Vice President Finance ' Gallagher Bassett Services, Inc. • The Gallagher Centre Two Pierce Place Itasca, IL 60143-3141 and in the case of the CLIENT: Mr. Gerard J. Bauer I� Risk Manager City of Decatur, Illinois #1 Civic Center Plaza Decatur, IL 62523 CanalE(7l89)