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SERVICE CONTRACT FOR MULTIPLE LINES CLAIMS HANDLING oi5_ a 1 y THIS SERVICE CONTRACT FOR AUTOMOBILE LIABILITY, GENERAL LIABILITY AND WORKERS ' COMPENSATION CLAIMS HANDLING is made and entered into this 14 `x' day of January, 2005 , but is effective for all purposes as of the lst day of January, 2005 , by and between INDIAN RIVER BOARD OF COUNTY COMMISSIONERS ( referred to as the "Employer"), and JOHNS EASTERN COMPANY, INC . (referred to as the " Service Agent") . WITNESSETH : WHEREAS , the Employer has undertaken to self-insure its Automobile Liability, General Liability and Workers ' Compensation liability in accordance with the Workers ' Compensation Law and other applicable statutes and regulations ; and WHEREAS , the Service Agent is engaged in the supervision and administration of programs for self-insured employers ; WHEREAS , the Employer desires to engage the Service Agent for, and the Service Agent desires to assist the Employer in , automobile liability, general liability and workers ' compensation claims handling ; NOW, THEREFORE , for and in consideration of the premises and of the mutual obligations , performance of services , and payment of compensation set forth herein , the parties agree as follows : 1 . Engagement . The Employer hereby engages the Service Agent to supervise and administer the Self-Insured Workers ' Compensation Program of the employer in accordance with the Workers ' Compensation Law as adopted and amended by the State of Florida (the "Law") and the applicable rules and regulations as promulgated by the applicable agencies of the State of Florida relating to the Law (the "Rules ") , all in accordance with the Service Agent ' s proposal dated December 16, 2004, a copy of which is attached hereto and incorporated herein by this reference (the " Proposal ") . 2 . Term. Subject to termination pursuant to paragraph 8 , the term of this Agreement shall begin as of January 1 , 2005 and shall terminate on September 30 , 2006; provided, however, that this Agreement shall renew automatically for two additional one- year terms unless otherwise terminated . 3 . Fund for Payment of Claims . The Employer has the sole obligation and responsibility for funding the payment of claims made by its employees under the Law and Rules . The Service Agent assumes no duty to fund any such claims at any time and shall have no obligation to advance fiends for any such payment . The Employer agrees to maintain all necessary fiends for payment of claims in accordance with the Law and Rules and to inform the Service Agent of all relevant details with respect to any such accounts in order for the Service Agent to perform its duties under this Agreement. The Employer shall add to or increase the amount in any such accounts as needed, and , in any event, within five (5 ) business days from the Service Agent ' s notice to the Employer to such effect. 4 . Allocated Claims Expenses . "Allocated Claims Expenses " shall be defined as expenses arising in connection with the settlement of claims , which shall be defined as expenses directly allocated to a particular claim to be discharged from the accounts funded by the Employer specified in paragraph 3 , including, but not limited to :