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<br />6.1C <br />Page 5 of 8 <br /> <br />J. Provide a monthly check register of all financial transactions. <br /> <br />K. Provide a computerized loss analysis and summary each month covering activity of claims <br />reported to CMI to include cumulative loss information to date. <br /> <br />L. CMI's employees shall perfonn field investigations on individual claims upon the mutual <br />agreement of both parties. All costs and fees for these services will be paid at the standard <br />billing rate plus 50 cents per mile. These fees shall be paid under allocated expenses after <br />approval by Client. <br /> <br />M. Horizon Managed Care, LLC, an affiliated entity, is our on-site copy service. Allowable <br />photocopy charges are billed to the file under allocated loss expense. <br /> <br />N. CM! will fully cooperate with all audit requests by Client or other associated agencies. <br /> <br />O. Affiliated Entities. Separate entities, Horizon Managed Care, LLC ("HMC") and Single Source <br />Medical, LLC ("Single Source Medical") are owned by shareholders and executives of CM!. <br /> <br />HMC provides a medical cost management program. HMC shall be paid by Client for bill <br />review and other services rendered by staff for the managed care program. Costs for outside <br />services for managed care shall also be paid by Client. <br /> <br />Single Source Medical provides durable medical equipment (DME) and other supplies to the <br />injured workers of Client at competitively low rates. Client shall have access to the best pricing <br />offered by Single Source Medical, and will automatically be eligible to receive available <br />discount rates. <br /> <br />In the event that Client elects not to participate in the goods and services offered by either of <br />CMI's affiliated entities, but rather to contract through unrelated vendors, please contact CMI's <br />executive staff to make these arrangements. <br /> <br />VI. PENALTIES AND CITATIONS <br /> <br />CMI shall indemnifY and save harmless Client from and against all losses and all claims, demands, <br />payments, suits, actions, recoveries, and judgments of every nature and description brought or <br />recovered against it, by reason of any act or omission of CMI, its agents or employees, in the <br />execution of the service or in consequences of any negligence or carelessness the same and shall <br />provide an Errors and Omissions policy in the amount of $1,000,000 dollars to assure that Client <br />will be protected for any errors and omissions resulting from the work of CM!. <br /> <br />The parties acknowledge that the California Workers' Compensation Refonn Act of 1989 requires <br />first payment of Temporary Disability Indemnity within 14 days of the Client's knowledge of the <br />injury and generally imposes an automatic penalty of ]0% of the amount delayed for late indemnity <br />payments which shall be payable directly to the injured employee without application. <br />Furthermore, the parties agree that unless CMI is provided with notice of the claim within 5 days of <br />the Client's knowledge of the injury, the above-referenced automatic penalty of 10% shall be and <br />remain the sole responsibility of the Client. <br /> <br />Redwood City 2008-2009\word\cmi\contracts\lk <br /> <br />Page 3 of6 <br /> <br />06/05/08 <br />