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The Pool Member agrees to pay the annual contribution to the Fund in four(4)equal quarterly installments,in advance,commencing at <br /> the beginning of this Interlocal Agreement with subsequent installments due the first quarter thereafter. In the event this Interlocal <br /> Agreement is terminated as herein provided,the Fund shall promptly repay to the Pool Member any such unearned annual contribution <br /> prorated as of the date of termination and the Pool Member agrees during the term of this Interlocal Agreement to promptly pay all <br /> reimbursable deductibles upon receipt of statement. <br /> At the end of each and every Fund Year,the Fund may require the Pool Member to submit the actual data requested on the exposure <br /> summary as reflected by the books and records of the Pool Member.The Fund reserves the right to audit the records of any Pool Member <br /> and adjust contributions accordingly. <br /> In the event that the Pool Member fails or refuses to make the payments,including accrued interest,as herein provided,the Fund reserves <br /> the right to terminate such Pool Member by giving them ten(10)days' written notice and to collect any and all amounts that are earned <br /> pro rata for the period preceding contract termination. If the amounts owed, including reimbursable deductibles, must be collected by <br /> suit,the Pool Member agrees to pay attorneys'fees and costs incurred in such suit. <br /> 7. The Fund shall maintain adequate protection from catastrophic losses to protect its financial integrity.Aggregate protection shall also be <br /> maintained.The Member's contributions shall be limited to that amount as calculated under this Interlocal Agreement.Notwithstanding <br /> anything to the contrary,the total combined aggregate limit of liability of the Fund for all Pool Members in any Fund Year,regardless <br /> of the number of occurrences or claims,shall be limited to the amount of money contained in the Fund.As to the Pool annual aggregate <br /> limits or the amount of money in the Fund,the Board of Trustees,in its sole discretion,may determine an allocation methodology among <br /> affected Pool Members should the Pool annual aggregate limit be reached,or should the money in the Fund be exhausted. <br /> 8. Notwithstanding the provisions of the foregoing paragraph, it is agreed the Board shall have the right to adjust the financial protection <br /> outlined above and/or amend coverages as it finds available or deems necessary to maintain the fiscal soundness of the Fund at the <br /> beginning of or during any Fund Year. <br /> 9. The Fund will make available loss control services to the Pool Members to assist them in following a plan of loss control that may result <br /> in reduced losses. The Pool Member agrees that it will cooperate in instituting any and all reasonable loss control recommendations.In <br /> the event that the recommendations submitted seem unreasonable,the Pool Member has a right to appeal to the Board.The Board shall <br /> hear the objections of the Pool Member at its next regularly scheduled meeting and its decisions will be final and binding on all parties. <br /> Any Pool Member who does not agree to follow the decision of the Board shall be withdrawn from the Fund immediately. <br /> 10. The Pool Member agrees that it will appoint a contact of department head rank,and the Fund shall not be required to contact any other <br /> individual except this one person. Any notice to or any agreements with the contact shall be binding upon the Pool Member. The Pool <br /> Member reserves the right to change the contact from time to time by giving written notice to the Fund. <br /> 11. The Fund agrees to handle all cyber liability and data breach response claims, and provide a defense for any and all cyber liability and <br /> data breach response claims covered under this Interlocal Agreement after prompt notice has been given. The Pool Member hereby <br /> appoints the Fund staff and Contractors as its agents to act in all matters pertaining to processing and handling of claims covered under <br /> this Interlocal Agreement and shall cooperate fully in supplying any information needed or helpful in settlement or defense of such <br /> claims. As respects cyber liability and data breach response claims, the Fund staff and Contractors shall carry on all negotiations with <br /> the claimant and his/her attorney, when applicable, and negotiate within authority previously granted by the Fund. If a personal <br /> appearance by the Pool Member or an employee is necessary,the expense of this appearance will not be the responsibility of the Fund. <br /> With the advice and consent of the Fund,the Fund staff and the Contractors will retain and supervise legal counsel for the prosecution <br /> and defense of any litigation.All decisions on individual cases shall be made by the Fund through the Fund staff and the Contractors, <br /> which include,but are not limited to,the decision to appeal or not to appeal, settlement negotiations,the decision of whether to settle, <br /> and other litigation tactics.However, any Pool Member shall have the right in any case to consult with the Fund on any decision made <br /> by the Fund staff or Contractors.The Board shall hear the objections of the Pool Member at its next regularly scheduled meeting and its <br /> decision will be final and binding on all parties.Any suit brought or defended by the Fund shall be brought or defended only in the name <br /> of the Pool Member and/or its officers or employees. There shall be supplied periodically to each Pool Member a computer printout <br /> involving a statement of claims.As respects the Texas Municipal League Cyber Liability and Data Breach Response Self-Insurance Plan, <br /> the Fund shall have priority in enforcing its subrogation claims against the claims of Pool Member. <br /> 12. The Pool Member acknowledges that it has received a copy of the Bylaws of the Fund and agrees to abide by the Bylaws and any <br /> amendments thereto. <br /> 13. The Fund agrees that all Fund transactions will be annually audited by a nationally recognized certified public accounting firm. <br /> 14. If legally required,the Fund shall cause to be filed the necessary tax forms with the Internal Revenue Service. <br /> Revised 04/2024 <br />