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^ SECTION IT: CITY: <br />The City agrees to: <br />1. Report all claims and losses to Ward in a timely manner. <br />2. Provide adequate funds for payment of losses and expenses. <br />3. Provide up-to-date information on all excess insurance. <br />4. Establish settlement authority of $1,000 per claim. <br />5. Cooperate in the disposition of claims. <br />6. Cooperate in the investigation of all claims. <br />7. Pay the Ward service fee promptly. <br />SECTION III: INDEMNIFICATION: <br />The City agrees that it will indemnify and hold harmless Ward and its directors, officers, <br />employees, subsidiaries, shareholders and affiliates from and against any and all claims, loss, <br />liability, costs, damages, and reasonable attorney's fees incurred by Ward as the direct or indirect <br />result of any misconduct, error or omission of the City or any of the City's directors, officers, <br />employees, subsidiaries or affiliates, taken in connection with the furtherance or performance of <br />any provision of this Agreement, or as a result of instructions given by the City to Ward, which <br />the latter follows, provided that said claims, loss, liability, costs, damages, and reasonable <br />attorney's fees have not been directly caused by any misconduct, error or omission by Ward, its <br />directors, officers, employees, subsidiaries and affiliates. <br />Ward agrees that it will indemnify and hold harmless the City and its directors, officers, <br />employees, subsidiaries and affiliates from and against any and all claims, loss, liability, costs, <br />damages, and reasonable attorney's fees incurred as the direct or indirect result of any <br />misconduct, error or omission of Ward or any of its directors, officers, employees, subsidiaries, <br />shareholders or affiliates, taken in connection with the furtherance or performance of any <br />provision of this Agreement, provided that said claims, loss, liability, costs, damages, and <br />reasonable attorney's fees have not been directly caused by any misconduct, error or omission of <br />the City, its directors, officers, employees, subsidiaries and affiliates. <br />-2- <br />