R89-163 AUTHORIZING AGREEMENT GALLAGHER-BASSETT SERVICES, INC

Home Browse Search

• -4- + B. Obliqations of CLIENT 1. CLIENT shall pay GB for services the annual sum set forth on Schedule V. At the end of the first year of this contract, the annual compensation shatl be subject to adjustment. 2. CLIENT shall provide funds for the payment of qualified claims or losses and allocated loss expenses. GB shall not be required to advance funds to pay fosses, allocated loss expenses or bank charges. SCHEDULE II BANKING - SIMMS GB will provide an on-line check issuance and banking communication system known as "APACS." which provides for automated payments and control. The account will be funded with Citibank to administer a SIMMS cash management program. Such cash management program will deal directly with the funding program of the CLIENT's banking fac�lity. GB will assist the CLIENT in establishing the initial imprest opening balance of the fund. The details of the CLIENT's program are set forth in a letter agreement between the CLIENT, Citibank N.A. and Arthur J. Gallagher & Co. (GB) (hereafter the "Account Parameter Agreement''). In addition, GB will analyze the account from time to time and will submit advisory reports and required adjustments to the impresUopening balance. Changes to the frequency of funding and�or imprest opening balance will require the execution of a new Account Parameter Agreement. GB will charge an annual fee for these services. It is expressly understood that GB shall not be required to advance its own funds to pay any of the CLIENT's obligations. In the event of cancellation or nonrenewal of this contract, CLIENT agrees to fund Citibank in an amount sufficient to fund all of the CLIENT's outstanding obligations. If, at any time, CLIENT fails to provide adequate funding, GB shall issue "stop payment" orders on outstanding payments. CLIENT agrees to indemnify GB for any losses resulting from CLIENT's. tailure to fund its obligations. Any bank charges resulting from inadequate funding including, but not limited to. interest. stop payment charges and overdraft fees shall be the obligations of the CLIENT and shall be billed to the CLIENT when known. SCHEDULE III TERMS AND CONDITIONS A. Discretionarv Pavment Authoritv - The limit on any discretionary 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 authority 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 liability 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. Cont-LE 17�89)