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Contract Agreement for Police Services Page 4 V.METHOD OF PAYMENT St.Anthony will bill Falcon Heights monthly for 1/12 of the annual fee,and Falcon Heights will promptly remit payments to St. Anthony within 30 days after receiving each billing from St. Anthony. VI.LIABILITY 1.Falcon Heights agrees to maintain coverage for general liability in the minimum amount of $4 million dollars per occurrence.The coverage must include St.Anthony as an additional insured.Except for automobile liability claims,Falcon Heights shall defend and indemnify St.Anthony and its officers,agents,and employees against any claim for damages arising out of St.Anthony’s negligence,or failure to perform its obligations under the terms of this Agreement.St.Anthony agrees to defend,indemnify,and hold Falcon Heights and its officers,agents and employees harmless from all auto liability claims arising out of St. Anthony’s performance of its obligations under the terms of this Agreement.St.Anthony shall be responsible for the cost of any claims,alleged injuries or damages received by any person or property resulting from any negligence,act,or omission of St.Anthony,its officers,agents or employees in carrying out the terms and conditions of this Agreement that exceed Falcon Heights’$4 million dollar in coverage and shall defend and indemnify Falcon Heights to the extent such claims exceed $4 million.If Falcon Heights’coverage limit is exhausted,Falcon Heights and its coverage provider shall have no further obligation to defend St.Anthony.However,upon the advice of defense counsel and the liability coverage provider for each party,Falcon Heights and St.Anthony may cooperate in the defense of any action.Nothing herein shall be construed to provide coverage or indemnification to an officer,agent,or employee of any party for any act or omission for which the officer,agent,or employee,was not acting in the performance of the duties of their position, and is guilty of malfeasance in office, willful neglect of duty, or bad faith. 2.Except as otherwise provided,Falcon Heights shall not be called upon to assume any liability for the direct payment of any salaries,wages,or other compensation to any St. Anthony personnel performing services pursuant to this Agreement for said Falcon Heights, and St. Anthony hereby assumes said liabilities. 3.Except as herein otherwise specified,Falcon Heights shall not be liable for compensation or indemnity to any St.Anthony employee for injury or sickness arising out of the performance of services pursuant to this Agreement,and St.Anthony hereby agrees to defend, indemnify and hold harmless Falcon Heights against any such claim. 4.St.Anthony,its officers and employees shall not be deemed to assume any liability for intentional misconduct or negligent acts of Falcon Heights or of any other officers,agent, or employee thereof,and Falcon Heights shall hold St.Anthony and its officers and employees harmless from,and shall defend and indemnify St.Anthony and its officers and employees against any claim for damages arising out of Falcon Heights'negligent performance or failure to perform its obligations pursuant to this Agreement. 5.Nothing in this Agreement shall constitute a waiver of the statutory limits on liability set forth in Minnesota Statutes,Chapter 466 or a waiver of any available immunities or defenses.Nothing herein shall be construed to provide insurance coverage or indemnification to an employee,official or agent of any Party for any act or omission for which the employee,official or agent is guilty of malfeasance in office,willful neglect of duty or bad faith. VII.INSURANCE.