SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS. COMES NOW, AMERICAN ZURICH INSURANCE COMPANY on behalf of its

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1 SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS COMES NOW, AMERICAN ZURICH INSURANCE COMPANY on behalf of its agents, servants, successors, assigns, administrators, subsidiaries, independent adjusters, experts, parent and related corporations and/or business organizations of any kind, and attorneys (hereinafter collectively referred to as "ZURICH"), and POLK COUNTY BOCC, on behalf of its parent and related corporations and/or business organizations of any kind, and attorneys, including but not limited to, the Polk County BOCC Northeast Regional Wastewater Treatment Facility (hereinafter collectively referred to as "POLK COUNTY" or INSURED ) having read the terms of this SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS (hereinafter sometimes referred to as the "AGREEMENT"), after having received the advice of counsel of their choosing and being satisfied with their counsel and the advice received, agree as follows: IN CONSIDERATION of a total payment by ZURICH in the amount of Two Hundred and Fifty Thousand Dollars and 00/100 ($250,000.00), the INSURED hereby remises, releases, acquits, and forever discharges ZURICH from any and all claims, actions, causes of action, demands, rights, damages (whether compensatory, consequential and/or punitive), loss of services, expenses, compensation, and obligations towards the INSURED relating to the claim made for the bolt failures in the air diffusers of the Northeast Regional Wastewater Treatment Facility, claim number , made pursuant to the Equipment Breakdown Protection Policy issued by ZURICH to the INSURED, policy number BM , during the period of April 1, 2011 through April 1, 2012, as well as the Builders Risk and Installation Policy issued by ZURICH to the INSURED, policy number EC , during the period of April 24, 2011 through April 24, 2012, including any assertions, allegations or claims that ZURICH committed bad faith, engaged in unfair claims 1

2 practices or breached the implied covenant of good faith and fair dealing related to the claim referenced herein. It is understood and agreed by the INSURED that the $250, payment is being made by ZURICH to resolve and settle a disputed claim, and that ZURICH, by making the payment described herein, intends merely to resolve controversy and avoid the burden, expense and annoyance of litigation. The INSURED further understands and agrees that the payment of $250, is not to be construed as an admission of liability on the part of ZURICH. Although this agreement represents a full and complete settlement of all the above described claims between ZURICH and POLK COUNTY BOCC, it is acknowledged and understood that this settlement represents only partial compensation of POLK COUNTY BOCC s damages, and POLK COUNTY BOCC reserves its right to seek the balance from other persons or entities other than ZURICH. The INSURED hereby represents and warrants that it enters into this AGREEMENT relying wholly upon it s own judgment, belief and knowledge of the nature, extent, effect and duration of any damages and liability therefor. The INSURED further represents that it enters into this AGREEMENT without relying upon any statement or representation of ZURICH. The INSURED represents that it had the opportunity to discuss this matter with counsel of its choosing and is satisfied with its counsel and the advice received. The INSURED further declares and represents that no promise, inducement, or agreement not herein expressed has been made to the INSURED and that this AGREEMENT contains the entire agreement between the parties hereto and that the terms of this AGREEMENT are contractual and not a mere recital. The INSURED hereby agrees that it shall bear its own costs, attorney s fees, public adjuster fees, expert fees and professional fees, and warrants that it will not pursue claims 2

3 for or entitlement to past, present or future attorney s fees, public adjuster fees, expert fees, professional fees, costs or interest related in any way to this claim. The INSURED represents and warrants that it has not previously assigned or otherwise transferred, or attempted to transfer, any of the claims released by the INSURED in this AGREEMENT. The INSURED agrees to satisfy any and all liens, assignments, bills, claims of liens or subrogated interests, including but not limited to any attorneys or public adjusters retained by the INSURED in connection with this claim, arising from the loss to the insured property involved herein from the above-described consideration, prior to distribution, and to indemnify and hold harmless ZURICH from any asserted liens, assignments, bills, claims of liens or subrogated interests, including such costs and attorneys fees incurred in defending such claims and/or incurred in enforcing this agreement. In the event that one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall in no way affect any other provisions of this AGREEMENT and shall be continued as if such invalid, illegal or unenforceable provision had never been contained herein. This AGREEMENT is conditioned upon the approval of the POLK COUNTY BOCC. Payment by ZURICH shall be made no later than ten (10) days after this AGREEMENT is approved by the POLK COUNTY BOCC and executed by the INSURED. The party executing this AGREEMENT on behalf of POLK COUNTY BOCC, represents and warrants that he or she is fully authorized to enter into this AGREEMENT, and that he or she has taken all necessary corporate and internal actions to duly approve the making and performance of this AGREEMENT on behalf of POLK COUNTY BOCC. The 3

4 individual represents, that he or she has the authority to enter into this AGREEMENT on behalf of POLK COUNTY BOCC and to bind said party, and that no further corporate or other internal approval is necessary. This AGREEMENT is to be construed under the laws of the State of Florida. The INSURED declares that it has read and understands the foregoing SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS. 4

5 SIGNED WITNESSED AND SEALED this day of, (Printed Name) On behalf of POLK COUNTY BOCC STATE OF FLORIDA COUNTY OF The foregoing instrument was acknowledged before me this day of, 2012 by on behalf of POLK COUNTY BOCC, and is personally known to me OR who has produced as identification and who did take an oath. {SEAL} NOTARY PUBLIC State of Florida My Commission Expires: 5

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