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HomeMy WebLinkAbout5.423 Original ContractAVIZENTTM Frank Gates Service Co Attenta Mr. Bob Coons Human Resources Manager City of Port Angeles 321 East Fifth Street Port Angeles, WA9 8362 -0217 Dear Mr. Coons, Enclosed for you records is a fully executed original of the above referenced agreement. I substituted a new page 7 that did not delete the incorporation of Exhibit B into the Agreement. If you have any questions or concerns, or need anything further, please do not hesitate to contact me. Enclosure cc: Re: Fully Executed Workers' Compensation Self Insurance Service Agreement The Frank Gates Service Company and City of Port Angeles RISK MANAGEMENT. WITHOUT THE RISK. May 11,2010 Very truly yours, Michelle P. Metzger Mailing Address Tel 800 777 4283 P 0 Box 182364 Fax 614 793 5400 Columbus, OH 43218 -2364 Web AVIZENTRISK com 5. zFa3 [IfECIEugI air ..11= MAY 172010 2/ HUMAN RESOURCES WORKERS' COMPENSATION SELF INSURANCE SERVICE AGREEMENT THIS WORKERS' COMPENSATION SELF INSURANCE SERVICE AGREEMENT (the "Agreement is entered into this 9 day of L 2010 by and between THE FRANK GATES SERVICE COMPANY, d/b /zent, "Avizent an Ohio corporation, with its principal place of business located at 5000 Bradenton Avenue, Dublin, Ohio 43017, and CITY OF PORT ANGELES, WA "Employer its principal place of business located at 321 East 5th Street, Port Angeles, WA 98362 -0217. RECITALS WHEREAS, Employer maintains a self insurance program, including workers' compensation and other benefits, for the benefit of its employees in the state of Washington; and WHEREAS, Avizent provides consultation and administration services with respect to workers' compensation self insurance matters; and WHEREAS, Employer is desirous of contracting with Avizent for the performance of consultation and administration services with respect to its self insurance program; and WHEREAS, Avizent is desirous of performing such services for Employer. PROVISIONS NOW, THEREFORE, in consideration of the foregoing, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, agree as follows: 1. Term of Agreement. The term of this Agreement shall be for a three (3) year period effective beginning January 1, 2010 and ending December 31, 2012, "Initial Term on the terms and conditions set forth in this Agreement. (a) Upon expiration of the Initial Term, this Agreement shall automatically renew itself for successive one (1) year periods "Subsequent Term unless written notice to the contrary is provided by either party at least ninety (90) days prior to the expiration of the then current term of this Agreement. Rev 080109 1 Rev 080109 (b) Upon the occurrence of a material breach or default as to any obligation hereunder by either party and the failure of the breaching party to cure (within thirty (30) days after receiving written notice thereof from the non breaching party) such material breach or default, this Agreement may be terminated by the non breaching party by giving written notice of termination to the breaching party, such termination to be immediately effective upon the giving of such notice of termination, without recourse to any court or tribunal. 2. Services to be Provided. Avizent shall provide the following administrative services to Employer (the "Services (a) Recommending to Employer procedures required for prompt reporting and recording of all occupational injuries and diseases. It shall provide claim forms for reporting such injuries or diseases to the proper state claim administrative agency. (b) Evaluating claims and recommending to Employer their proper disposition. (c) If applicable, reviewing claims for determination of possible relief from charges under the provisions pertaining to handicapped employees, or other applicable credits or refunds. (d) Maintaining complete records (hard copy and/or computerized) on all reported claims on behalf of and as custodian for Employer. At Employer's request and for an implementation fee to be determined, Avizent will examine all claims relating to injuries or occupational diseases arising prior to the effective date of this Agreement, enter such claims into Employer's claim data and assist in the management and control of said claims. (e) Submitting a monthly report to Employer of workers' compensation expenditures. Such reports shall contain and summarize all expenditures made and estimates of all known future liabilities based upon facts available. (f) (g) Preparing and delivering all appropriate benefit payments (indemnity and medical) utilizing an agreed -upon payment method (check or voucher). Employer will be responsible for all expenses relating to checking account maintenance, including check or voucher stock. Recommending a panel of qualified physicians, surgeons and other specialists for the treatment of employees sustaining an occupational injury or disease in the states which require or permit such panels. It shall review physician's findings, consult with doctors to resolve medical questions and, if requested by Employer, arrange for and monitor rehabilitation services. It shall review, or cause to be reviewed by a subcontractor as an allocated expense, medical bills for compliance with fee 2 Rev 080109 (h) Upon request by Employer, recommending attorneys to assist Employer in any case where representation is desired, and consulting with and furnishing available claim information to any attorney chosen to represent Employer. (i) schedules where appropriate and/or reasonable, customary and payable under the applicable state workers' compensation act. Upon request by Employer, furnishing information maintained by Avizent to Employer for assistance in Employer making third party claims and reporting appropriate losses and details therein to Employer's excess insurance carrier. (j) Meeting periodically with Employer at mutually agreeable times to review all open indemnity claims, discussing estimated liabilities and claim management strategies. (k) Consulting with Employer on matters pertaining to self insurance at times deemed necessary by Employer or its consultants. (1) Assisting Employer in the preparation and submission of all state required forms related to Employer's workers' compensation claims. (m) Assisting Employer in the preparation and filing of such annual reports for self insured risks as required by the appropriate state agency. In addition to the Services and post termination Services set forth below, upon request and for an additional fee as mutually agreed upon by the parties, Avizent will provide additional administrative services to Employer to further assist Employer in administering Employer's self insurance program. The additional administrative functions may include claims services provided for claims incurred by Employer prior to the effective date of this Agreement. 3. Continuation of Services. In the event this Agreement is terminated, Avizent will continue to administer any qualified claims or losses remaining open, where appropriate, provided that Employer shall continue to make adequate funds available for the payment of such qualified claims or losses and any allocated loss expenses. The additional fee for this service shall be negotiated and agreed upon prior to the effective date of termination. If the parties fail to reach agreement regarding the additional fee for this service, Avizent shall not provide administrative services for any open claims or losses. In addition, if Employer fails to make adequate funds available for the payment of claims, losses or allocated loss expenses, Avizent shall have no obligation to perform any further services and may terminate the Agreement immediately. 4. Employer Oblieation. Employer shall at all times make adequate funds available for the payment of qualified claims or losses and any allocated loss expenses. It is expressly understood that Avizent shall not be required to advance its own funds or extend its own credit to pay losses or allocated loss expenses for any claim administered hereunder, or to satisfy Employer's legal, statutory or other obligations. Notwithstanding anything to the contrary contained herein, if Employer fails to make adequate funds available for claims, losses or allocated 3 loss expenses, Avizent may, at its sole option, immediately cease performing administrative services. 5. Fees. In consideration of the Services provided, Employer shall pay Avizent a fee for said Services in accordance with the schedule and terms attached hereto as Exhibit A, Service Fees. Employer shall pay the Service Fees in advance within ten (10) days of receiving billing therefore. Avizent's fees do not include taxes or governmental charges, and Employer will be responsible for the payment of any applicable sales, use, value added, or other tax or government or regulatory agency charge imposed based on Services provided hereunder, exclusive of net income or corporate franchise taxes. Late payments are subject to a service charge of 1 %2 per month (18% ANNUAL RATE). Employer shall reimburse Avizent upon demand for all reasonable costs (including attorney's fees) incurred in collecting past due amounts owed by Employer, and such costs shall accrue interest from the date first due. 6. Amended Fees. In the event that the business operations of Employer expand or contract to such an extent that the need for Services are significantly affected, the Service Fees may be renegotiated at any time during the term of this Agreement based upon good faith shown by either party that the Service Fees are inequitable. In addition, Avizent may increase the Service Fees applicable to any term of this Agreement (other than the Initial Term) by providing written notice to Employer of such increase at least thirty (30) days prior to expiration of the then current term of this Agreement. 7. Indemnification. Employer shall hold harmless and indemnify Avizent and its directors, officers, agents, and employees from and against any and all claims, demands, losses, liabilities, obligations, damages, costs, and expenses (including court costs and reasonable attorneys' fees) arising out of or in connection with the breach of this Agreement or the unlawful or negligent conduct of any and all agents or employees of Employer. Avizent shall hold harmless and indemnify Employer and its directors, officers, agents, and employees against and from any and all claims, demands, losses, liabilities, obligations, costs, and expenses (including court costs and reasonable attorney's fees) arising out of or in connection with the breach of this Agreement or the unlawful or negligent conduct of any and all agents or employees of Avizent. The party to be indemnified shall give the indemnifying party prompt and reasonable notice of claims, demands, losses, liabilities, obligations, damages and expenses in any form that are brought or threatened against that party and for which it seeks indemnification hereunder. The party to be indemnified shall provide reasonable assistance in the defense of said actions for which the indemnifying party shall bear the expense. 8. Return of Information upon Termination. Upon the termination of this Agreement, at Employer's expense, Employer shall be entitled to the return of all hard copy claim files and any computerized claim identification and payment data, excluding any computer hardware, software, firmware or other proprietary information of Avizent. Avizent, its employees, agents or attorneys shall be entitled to inspect such files prior to their return to Employer and make copies or extract Rev 080109 4 information there from. If Employer does not request the return of such files within sixty (60) days after termination of this Agreement, they may be destroyed at Avizent's option, subject to the regulations of the appropriate state agency or regulatory authority, and Employer shall have no recourse against Avizent for such destruction. 9. Confidentiality. Subject to the applicable laws, rules and regulations of the State of Washington, each party acknowledges that it may receive confidential or proprietary information or trade secrets (collectively "Confidential Information of the other party. Each party acknowledges that information and documents regarding claims, including but not limited to personally identifiable health, financial, identity or other personal information shall constitute "Confidential Information." Each party agrees: (a) to hold such Confidential Information in confidence and to protect such Confidential Information with at least the same degree of care as it normally exercises to protect its own Confidential Information of a similar nature; (b) to use such Confidential Information solely for the purpose of performing its obligations under this Agreement; (c) to reproduce such Confidential Information only to the extent necessary for such purpose; and (d) to restrict disclosure of such Confidential Information to only those employees, officers, directors, consultants, subcontractors and agents with a need to know for the purposes of performing its obligations under this Agreement. These restrictions on the use or disclosure of Confidential Information shall not apply to any Confidential Information (x) after it has become generally available to the public without breach of this Agreement; (y) which is disclosed by a party under legal process (with reasonable notice to the other party in order to permit such other party to exercise any rights it may have under applicable law to prevent or limit such disclosure); or (z) which a party agrees in writing is free of such restrictions. 10. Compliance with Laws. The Services provided pursuant to this Agreement shall be in compliance with the laws, rules and regulations of the state in which the Services are provided, as well as any applicable federal laws, rules or regulations. The Services provided shall specifically exclude any services which now or in the future may be deemed to be the practice of law. Avizent shall in no event give any legal opinion or provide any legal representation to Employer. Moreover, Avizent does not act as an insurer for Employer, and this Agreement shall not be construed as an insurance policy. 11. Entire Agreement. This Agreement supersedes all previous contracts between Avizent and Employer, written or oral, and constitutes the entire understanding and agreement of the parties hereto and shall not be modified, amended or revoked except by the express written consent of the parties hereto. 12. Notice. Any notice to Avizent under this Agreement shall be sufficient if sent via certified or express mail (with capacity to demonstrate receipt) and addressed to: Rev 080109 Avizent Attn: Mark McCarthy, General Counsel 5000 Bradenton Ave. Dublin, OH 43017 5 Any notice to Employer under this Agreement shall be sufficient if sent via certified or express mail (with capacity to demonstrate receipt) and addressed to: City of Port Angeles, WA 321 East 5 Street Port Angeles, WA 98362 -0217 Notice shall be validly given by either party to the other if directed to any other person or address either party may from time to time specify. 13. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Washington. 14. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. For purposes of this Agreement, the parties agree that counterparts signed and transmitted by facsimile, email or similar means shall be treated as an original document and shall have the same effect as an original signature on an original document for all purposes, including, but not limited to, execution of this Agreement and enforcement of the same. 15. Severability. If any provision of this Agreement is found to be unenforceable by a final order of a court of competent jurisdiction, the provision so affected shall be limited only to the extent necessary to permit compliance with the minimum legal requirement, and all such other provisions of this Agreement shall continue in full force and effect. 16. Contract Modification for Prosnective Le2a1 Events. In the event that any state or federal law(s) or regulation(s), now existing or promulgated after the effective date of this Agreement, is interpreted by judicial decision, regulatory agency or legal counsel for both parties in such a manner as to indicate that the structure of this Agreement or any term hereof may be in violation of such law(s) or regulation(s), the parties shall amend this Agreement as necessary. To the maximum extent possible, any such amendment shall preserve the underlying economic and financial arrangements between the parties. 17. Non Waiver of Agreement Provisions. The failure of any of the parties to insist in any one or more instances upon a strict performance of any provision of this Agreement or to exercise any option contained herein shall not be construed as a future waiver or relinquishment of such provision, but the same shall continue and remain in full force and effect. 18. Insolvency. In addition to all other rights and remedies available to the parties pursuant to this Agreement and applicable law, either party may terminate this Agreement, upon notice to the other, in the event a party is or becomes insolvent, or is the subject of or commences any regulatory or judicial proceeding for administrative oversight, dissolution, liquidation, bankruptcy, receivership or similar action. 19. Miscellaneous. Rev 080109 6 Rev 080109 (a) Employer and Avizent each acknowledge and agree that this Agreement has been negotiated and entered into in good faith and at arms' length; that, in the negotiation and drafting of this Agreement that it has been represented by and has relied upon the advice of counsel of its choice; that its counsel has had a substantial role in the drafting and negotiation of this Agreement; and therefore, that any rule of construction that any ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Agreement. (b) This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. (c) In the performance of its obligations called for in this Agreement, Avizent may subcontract certain services to third -party vendors or related companies. Avizent pledges in its awarding of any services to a third -party vendor that all contracts are awarded based on need, price, quality, service and in a fair manner serving the best interest of Employer. Avizent may receive an administrative or service fee from a subcontractor to reimburse Avizent for additional expenses incurred in support of the third -party agreement. (d) Avizent may use any affiliate in the performance of its obligations under this Agreement, and the rights of Avizent under this Agreement shall inure to the benefit of any such affiliate. (e) The offer represented by this Agreement shall automatically expire if said offer is not accepted by Employer, by execution of this Agreement, within sixty (60) days after receipt hereof. (f) Except with the other party's written consent, for the term of this Agreement and for a period of twelve (12) months thereafter, neither party may hire as an employee or consultant any employee of the other party. For the purpose of this section an "employee of the other party" is any current employee or any employee who has terminated employment within the last twelve (12) month period. In the event a party breaches this covenant of non solicitation and non employment, the non breaching party shall be entitled to recover the amount of one (1) times the annual salary per employee as liquidated damages. The parties further agree that in any action brought on account of any alleged breach of this covenant, the prevailing party shall be entitled to recover its reasonable attorneys' fees and court costs. 20. Grant of License. (a) Subject to the terms and conditions of this Agreement, and the execution of the Software Nondisclosure and Confidentiality Agreement attached hereto as Exhibit B, and made a part hereof, Avizent hereby grants, and Employer hereby 7 Rev 080109 non exclusive, non transferable license to use the computer software program, VISUAL Reports Studio. (b) The license granted hereunder is on a per user basis which is detailed in Exhibit A, Service Fees and is offered as an optional service to Employer. In the event Employer desires to use the software programs for more than the agreed to number of users, Employer shall be charged for the additional license, plus any costs associated therewith. (c) Avizent represents and warrants that it has the right to grant the license specified in this section. Avizent will defend, indemnify and hold harmless Employer and its directors, officers and employees against any and all loss, liability, claim, damage and expense arising out of any claim that Employer's use of the software licensed under this section violates any third party's patent, copyright or other intellectual property rights in such software. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. THE FRANK GATES SERVICE COMPANY CITY OF PORT ANGELES, WA B .,-4 By: ie606 ('d0A✓S Name: 1?,— Name: Title: /i.. Title: /-yir/,n a• J ecce_ rl yar44 .L v Date: �l� Date: 8 Service Fee: Employer agrees to pay Avizent for Services rendered an Estimated Annual Fee of $16,860.00, payable at $4,215.00 per quarter in advance, with an annual adjustment should the actual activity increase by more than ten percent (10 above the estimated activity shown in the schedule below. All billings, including any additional billing at the completion of the Initial and Subsequent Term(s), shall be payable within ten (10) days of receipt of billing for services. EXHIBIT A SERVICE FEES SELF INSURED WORKERS' COMPENSATION SERVICE PROGRAM Company Name: CITY OF PORT ANGELES, WA "Employer State: Washington Initial Term of Service Agreement: January 1, 2010 through December 31, 2012. 12 MONTHS CLAIMS ADMINISTRATIVE SERVICES PRICING Annual Account Administration Fee 12 New Indemnity Claims* Processed $645.00 Each 18 New Medical Only Claims Processed $155.00 Each 10 Open Indemnity Claims $475.00 Each/Year Estimated Annual Fee Rev 080109 $1,580.00 $7,740.00 $2,790.00 $4,750.00 $16,860.00 The $645.00 rate applies to any new Indemnity Claim processed during the term of the Agreement for a period of twelve (12) months from the date the claim is added to Avizent's electronic claims system. Any such new Indemnity Claim processed during the term of the Agreement that remains open for more than twelve (12) months from the date the claim is added to Avizent's electronic claims system shall be managed at the rate of $475.00 per open Indemnity Claim each year thereafter. The Annual Fee includes Bronze level access to VISUAL Reports Studio for one (1) Users, the claim reporting and analysis website offered exclusively by Avizent. Through VISUAL Reports Studio, claims data is available 24 hours a day, 7 days a week. User name and password protection ensures only authorized users access the website and view only their data. Secure Socket Layers encryption protects all data transmissions from unauthorized viewing. With the Bronze level access, regularly scheduled reports are posted to VISUAL Reports Studio periodically (monthly, quarterly, annually) and e -mail reminders notify users when reports are available. Reports are stored in Acrobat PDF format and can be viewed, searched, printed and downloaded, and users can print only the pages and number of copies needed. 9 The following fees and expenses shall be billed and paid through each individual claim file as an allocated expense. Medical Fee Bill Review Services and PPO Network Access Employer agrees to pay Avizent a fee rate of $1.30 per line per medical and pharmacy bill processed, with a two (2) line header per bill. Medical fee bill review includes review and reduction of medical charges to state fee schedule levels and review for duplicate charges. Employer further agrees to participate in Avizent's nationwide PPO network offering including pharmacy network and out of network negotiation services with any savings /reductions below state fee schedules or other enhanced savings subject to a fee rate of thirty percent (30 of any such savings. Enhanced Savings Avizent, at its sole discretion, may review bills for enhanced savings to include reductions for unbundling, fragmentation, usual and customary rates, up- coding, correct coding initiatives, and/or may refer bills for physician or nurse review and audit. All enhanced reductions achieved are subject to a fee rate of thirty percent (30 of the net savings below state fee schedule or usual and customary rates. State Medical EDI Reporting Employer agrees to pay Avizent a fee equal to the lesser of an additional (1) line header or $1.30 per bill in jurisdictions that require Medical Electronic Data Interchange (EDI) reporting. Electronic Billing (E -Bill) Employer agrees to pay Avizent an additional fee equal to the lesser of an additional (1) line header or $1.30 per bill in jurisdictions requiring E- Billing. Second Injury Recovery Services (Charged to Claim File as an Allocated Expense) Employer agrees to pay Avizent a fee for the management of non litigated second injury recovery issues in specific claims of twenty -five percent (25 of the recovery amount. Avizent shall obtain prior approval from Employer before pursuing, denying or finalizing any second injury recovery issue. Pharmacy Benefit Management Services Employer agrees to participate in Avizent's Pharmacy Benefit Program (PBM) subject to a fee rate of $1.40 per bill /prescription for medical fee bill adjudication and audit services, without any header fee. Pharmacy bills outside the PBM network are subject to the same medical fee bill adjudication per line or per bill rates of $1.40 per line and the same percentage of savings of thirty- percent (30 for PPO savings /reductions. The Annual Fee shall be subject to review, with the activity rates and the annual account administration fee subject to an automatic three percent (3 increase at the completion of the first and second twelve (12) month periods within the three (3) year term of the Agreement. Rev 080109 10 c'siwt': A The Annual Fee include the following services that are not charged to the individual claim file as additional fees payable to Avizent: 1. All settlement issues; 2. Preparation of 1099 Forms; 3. Preparation for all claim audits and attendance at claim audits; 4. All litigated issues and attendance at administrative hearings where appropriate or required; 5. Management of catastrophic claims; 6. Quarterly service /claim meetings; 7. Local account coordination duties performed by our adjusters coordinating all claim activities between Employer's corporate, regional and office personnel; 8. Account Executive duties including, but not limited to, coordination of quarterly claim meetings, periodic corporate visits, general account coordination and coordination of periodic educational /training seminars for managers; 9. Bank Account Management, including, but not limited to, deposit /check coordination, balancing and reconciliation, stop payments and refunds. Employer shall be responsible for all bank account service fees; 10. All standard reports provided electronically, including monthly check register and claim activity reports that are accessed through the Internet using Avizent's VISUAL Reports Studio; 11. Assistance in and data collection for jurisdictional renewals; 12. Web/Internet reporting of claims; and 13. Identification and pursuit of subrogation and excess recovery issues. Rev 080109 1. A telephone claim/incident reporting system at $25.00 per call or reported incident, and $9.00 per non -report calls. Reporting claims through Avizent's web -based intake system is $0.00. 2. The processing of Record Only Claims at the rate of $35.00 per reported incident. 3. Data download/export at $250.00 per transmission, whether magnetic tape, diskette, or electronic medium. 4. Each VISUAL Reports Studio, Silver Level User at the rate of $100.00 per month invoiced annually in advance at $1,200.00 each year. 5. All claim and financial reports shall be provided electronically through the Internet (VISUAL Reports Studio). Hard copy claim and financial reports are available to Employer at the rate of $100.00 per requested report, whether monthly, quarterly or otherwise. 11 The following represents services that may be obtained on behalf of Employer and are billed and paid for through each individual claim as an allocated expense (Expense Column). Avizent shall not proceed with these services without prior discussion and authorization from Employer. (a) Fees to attorneys for litigated and potentially litigated claims and for attorney representation at hearings, pretrial conferences or similar proceedings; (b) Fees to court reporters; (c) All court costs, court fees and court expenses; (d) Pre -and post judgment interest paid as a result of judgments; (e) Fees for service of process; (f) Costs of undercover operative and detective services; (g) Costs for employing experts for the preparation of maps, professional photographs, accounting services or records, chemical or physical analysis, diagrams, appraisals, or similar documents; (h) Costs for employing experts for their advice, opinions or testimony concerning claims under investigation or in litigation or for which a declaratory judgment is sought; (i) Costs for obtaining independent medical examination and/or evaluation for rehabilitation and/or to determine the extent of Employer liability; (j) Costs of legal transcripts of testimony taken at coroner's inquests, criminal or civil proceedings; (k) Costs for legal transcripts or copies of public records and/or medical records; (1) Costs of depositions and court reported and/or recorded statements; (m) Costs and expenses related to the pursuit of second injury recovery rights, and litigated subrogation and excess recovery; (n) Costs of engineers, handwriting experts and/or any other type of expert used in the preparation of litigation and/or used on a one time basis to resolve disputes; (o) Managed Care Services including, but not limited to, the following services: 1. Utilization Review Services 2. Light Duty and Return-to -Work Programs 3. Medical and Hospital Bill Audit Services 4. Medical Case Management and Vocational Case Management Services 5. Pharmacy Benefit Management Services (p) Costs for the reporting of claims (First Report of Injury) by telephone (Toll Free) or transmitted through the Internet; (q) Costs associated with claims indexing and OFAC reporting; (r) State mandated EDI Reporting on a per transaction cost to the claim file for all states which mandate the EDI reporting of either the First Report of Injury (FROI) and/or the Subsequent Report of Injury (SROI); and (s) Any other similar cost, fee or expense reasonably chargeable to the investigation, negotiation, settlement or defense of a claim or loss to protect or perfect the subrogation rights of Employer. Rev 080109 12 For the purpose of this Agreement, the following definitions apply to the type of claims processed and fee structure options. Medical Only Claim: A Medical Only Claim is defined as any accident resulting in minor injury that requires routine medical treatment where total medical payments do not equal or exceed $2,500.00 and no payments of indemnity (disability) benefits are made. Indemnity Claim: An Indemnity Claim is defined as any claim resulting in the payment of compensation (any type of disability) benefits, any claim that requires investigation for subrogation, any contested claim involving disputed or questionable issues, any claim requiring intensive medical management regardless of lost time days, any claim that requires settlement negotiations, or any claim that equals or exceeds $2,500.00 in medical payments. Record Only Claim: A Record Only Claim is defined as any accident resulting in no apparent injury and no medical treatment, excluding first aid. There are no billings for payment of medical services by a physician, hospital, or any other provider that submits medical bills for treatment. 12 Months Claims Administrative Services: Refers to the management of any new Indemnity Claim processed during the term of the Agreement for a period of twelve (12) months from the date the claim is added to Avizent's electronic claims system. Any such Indemnity Claim processed during the term of the Agreement that remains open for more than twelve (12) months from the date the claim is added to Avizent's electronic claims system shall be managed at the rate set forth above for open Indemnity Claims. If the Agreement is terminated or cancelled, all claims remaining open shall be managed at either an agreed annual fee rate per claim, at time and expense, or returned to Employer, as mutually agreed upon by the parties. Tail Claims: Refers to all Indemnity and Medical Only Claims remaining open after the claims management obligation for fee arrangements other than Life of Claim have been satisfied. The claims shall be managed at either an agreed annual fee rate per claim, at time and expense, or returned to Employer, as mutually agreed upon by the parties Rev 080109 13 This Software Nondisclosure and Confidentiality Agreement (the "Software Agreement is entered into as of this 7 day of 2010, by and between The Frank Gates Service Company, doing business as Avizen its affiliates and related companies (collectively "Avizent with its principal place of business located at 5000 Bradenton Avenue, Dublin, Ohio 43017, and CITY OF PORT ANGELES, WA (the "User its principal place of business located at 321 East 5 Street, Port Angeles, WA 98362 -0217, (collectively the "Parties WHEREAS Avizent provides consultation and administrative services with respect to workers' compensation and general liability matters; WHEREAS Avizent, as part of its consultation and administrative services, may provide access to software programs, including but not limited to, VISUAL Claims Studio.net Workers' Compensation Module, VCS /G2000 Claims, VCS /Gates2000 Payments, ALGL Crown, ALGL Ohio Schools, ALGL Crown Payments, ALGL Ohio Schools Payments, Atlantis, Dolphin, VISUAL Reports Studio, MAS500, Cyprus, VIS (Imaging), EDA, GRIT, AR System, SLP, and/or FAS 100 (hereinafter collectively "Software and WHEREAS the User is desirous of obtaining access to and using the Software; NOW, THEREFORE; in'consideration.of Avizent providing. the User access to and-use of the Software, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Nondisclosure and Confidentiality. Use of the Software may provide the User with access to personal identification information that is not publicly available, including,. but not limited to, confidential or privileged information relating to an individual's injuries, claims information, medical conditions, treatments, personnel records, financial information and individually identifiable health or other information, such as name, address and social security number, as well as other information that is considered confidential by federal, state, or local law or regulation (hereinafter "Confidential Information The User agrees and represents that it shall implement adequate safeguards, systems and procedures necessary to ensure the security and confidentiality, of Confidential Information, including without limitation: (1) requiring employees, agents and any, other persons who may have access to the Software, whether authorized orinot, to maintain the strict security and confidentiality of Confidential Information; (2) immediately reporting to Avizent any unauthorized access, use, disclosure or interception of Confidential~ Information; (3) implementing reasonable physical, administrative and technological safeguards to prevent unauthorized access, use, disclosure or interception of Confidential Information;, and (4) not accessing, using, disclosing or intercepting 'Confidential Information _in. any: manner that would, be .considered a violation' of the information' privacy and security,,provisions, of' applicable law, 'including but not `limited. to, the Health Insurance Portability and Accountability Act and its regulations, as they may apply to Avizent or the User. Rev 080109 EXHIBIT B SOFTWARE NONDISCLOSURE AND CONFIDENTIALITY AGREEMENT 14 2. Right to Audit. The User hereby agrees that Avizent shall have the right to audit (or to designate an independent third party to audit), during normal business hours, the safeguards, systems, and procedures implemented by the User to ensure the security and confidentiality of Confidential Information, and that the User will cooperate fully in providing Avizent access to all information, documentation and systems necessary to conduct such an audit. Avizent shall not be responsible for any time or miscellaneous costs incurred by the User in connection with an audit. Such costs shall include, but not be limited to, costs associated with providing audit reports, system access, and other information. 3. Access and Use. The User hereby agrees that Avizent shall have the right to deny the User access to and use of the Software if Avizent reasonably believes that the User has or is not complying with or is otherwise violating any of the terms of the Software Agreement, or any of the terms of use required to be accepted by User prior to being given access to the Software. 4. Indemnification. The User agrees to indemnify, release, defend and hold harmless Avizent from any and all claims, demands, losses, liabilities, damages, whether consequential, exemplary, indirect, special or otherwise, lost profits, fees, costs and expenses, including reasonable attorney's fees, of any kind whatsoever, resulting from or arising out of, directly or indirectly: (1) the User's use of or inability to use this Software; (2) the User's reliance on the operation of the Software or data or information contained within the Software; (3) any violation of these access terms by the User or any person obtaining access to the Software through the User; (4) any improper or unauthorized use of the Software resulting from User's violation of this Software Agreement; (5) the access to, use or release of Confidential Information obtained by the User through the Software or those obtaining access to Software through the User; or (6) damage to User's equipment, hardware or software due to use of the Software. 5. Miscellaneous. The rights and obligations of the Parties under this Software Agreement shall be governed by the laws of the state of Ohio. IN WITNESS WHEREOF, the parties hereto have executed this Software Agreement on the day and year first written above. THE FRANK GATES SERVICE COMPANY CITY OF PORT ANGELES, WA By: /1.-1• Name:.. �..r, Title: (��y Date: 080109 By: a ts cl i4 r7 9 Name: 404 c V S Title: /11/"...... Akoeute Date: Aire" 7. g_p i 15