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<br /> <br />6.1D <br />Page 12 <br /> <br />said claim(s) at the express written direction of Employer. <br /> <br />e. Any controversy between the parties to this Agreement involving the construction or <br />application of the terms, provisions, or conditions of this Agreement relating to the <br />payment of penalties or fines shaJl be submitted to arbitration upon the written <br />request of one party. after service of that request upon the other party. <br /> <br />f. Arbitration and controversies relating to the payment of penalties or fines under this <br />Agreement shall comply with and be govemed by the provisions of the Califomia <br />Arbitration Act, as set forth at sections 1280 et. seq. of the Califomia Code of Civil <br />Procedure. <br /> <br />g. Failing informal efforts between the parties to this Agreement to resolve disputes <br />regarding the payment of penalties or fines, each party shall appoint one person to <br />hear and resolve the dispute. These arbitrators, one appointed by each party, shall be <br />known for the purposes of this Agreement as "initial arbitrators". If the '1nitiol arbitrators" <br />are unable to agree on a resolution of the dispute they shall then choose a third <br />independent and impartial arbitrator whose decision shall be final and conclusive on <br />both parties. <br /> <br />h. If a dispute or arbitration under this Agreement is pending at a time when payment of <br />the disputed penalty(s) or fine(s) is either statutorily mandated or when failure to <br />effect payment will result in an increase in the fine or penalty, or an additional fine or <br />penalty, each party shall bear liability for one-half of the penalty(s) or fine(s) in dispute <br />until such time as the arbitration is concluded and liability for payment of the fine or <br />penalty is finally determined. Once determined, the party adjudged to be liable for <br />the penalty(s) or fine(s) shall reimburse the non-liable party for any portion of the <br />penalty(s) or fine(s) the non-liable party may have paid during the pendency of the <br />arbitration. <br /> <br />7.03. Excess Coveraae or Other Insurance: Administrator, as a part of the regular claims <br />administration process, shall comply with the reporting provisions. guidelines, and <br />requirements imposed by the Employer's Excess Workers' Compensation Insurance <br />Carrier(s) and other carriers that may be involved in the administration of the <br />Employer's Workers' Compensation Program. However, Employer as pOlicyholder shall <br />continue to be liable for all the duties, requirements, obligations, and penalties <br />imposed by Employer's Carrier(s). <br /> <br />VIII. MATERIAL CHANGE <br /> <br />8.01. In the event of material change to Employer's operations, Section II, "Service Fees", to <br />this Agreement shall be subject to renegotiation. "Material Change" shall be defined <br />as the acquisition, merger, or divestiture by Employer of or with another company or <br />business entity, the creation of new business operations not directly related to <br />Employer's current Califomia operations, or the elimination of business operations <br />within the State of Califomia, which could result in a materially significant increase or <br />decrease in employee population and workers' compensation claims filed in the State <br />of Califomia. <br /> <br />City of Redwood City - Claim Service Agreement - 2009 through 2010 <br /> <br />9 <br />