Resolution of the City of Jersey City, N.J.

7. Maximum Liabilty"7.01 It is the intent of the Parties that Travelers' maximum liability for theClaims released herein shall be limited to the Settlement Amount. Consistent with thisintent, the City agrees that, as ofthe Effective Date, it is self-insured for the full amountof any Claims or demands made with respect to the Policies that would have, could haveor were alleged to have been the responsibility ofTravelers under the Policies had thisAgreement not been entered into. The City shall pay the amount of such released Claimsirrespective of whether the demand is made directly upon the City or upon Travelers tothe City in response to any Claims or demand made against Travelers. The City shall besolely responsible for the full amount of any settlement or judgment resulting from suchreleased Claims. The City further agrees that for any Claims released herein, it shall payreasonable attorney fees, to the extent allowed by law.7.02 Should any such Claims that are potentially subject to the paymentdescribed in paragraph 7.01 be brought against Travelers, Travelers agrees (i) to promptlynotify the City of any such Claims that, absent the provisions of this paragraph, mightotherwise obligate Travelers to make a direct payment to any claimant; (ii) to cooperatePage 10 of20