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86 <br />2021 Amended and Restated WSA 17162043.1 <br />10.All awards of the arbitrator shall be binding on the SFPUC and the <br />Wholesale Customers regardless of the participation or lack thereof by any Wholesale <br />Customer or the SFPUC as a party to the arbitration proceeding. The parties to an arbitration <br />shall have the power to modify or amend any arbitration award by mutual consent. The <br />arbitrator shall apply California law. <br />8.02. Attorneys’ Fees <br />A.Arbitration or Litigation Between San Francisco and Wholesale Customers <br />Arising under the Agreement or Individual Water Sales Contracts. Each party will bear its <br />own costs, including attorneys’ fees, incurred in any arbitration or litigation arising under this <br />Agreement or the Individual Water Sales Contracts between San Francisco and the Wholesale <br />Customers. Notwithstanding the foregoing, and subject to the limitations contained herein, the <br />SFPUC may allocate to the Wholesale Customers as an allowable expense, utilizing the <br />composite rate used for allocating other Water Enterprise administrative and general expenses, <br />any attorneys’ fees and costs incurred by the SFPUC in connection with arbitration and/or <br />litigation arising under this Agreement and/or the Individual Water Sales Contracts. Attorneys’ <br />fees incurred by the SFPUC for attorneys employed in the San Francisco City Attorney’s office <br />shall be billed at the hourly rates charged for the attorneys in question by the San Francisco City <br />Attorney’s Office to the SFPUC. Attorneys’ fees incurred by the SFPUC for attorneys other than <br />those employed in the San Francisco City Attorney’s Office shall be limited to the hourly rates <br />charged to the SFPUC for attorneys and paralegals with comparable experience employed in <br />the San Francisco City Attorney’s office and in no event shall exceed the highest hourly rate <br />charged by any attorney or paralegal employed in the City Attorney’s Office to the SFPUC. <br />B.Arbitration or Litigation Outside of Agreement Concerning the SFPUC <br />Water System or Reserved Issues <br />1.The attorneys’ fees and costs incurred by the SFPUC in litigation between <br />San Francisco and one or more of the Wholesale Customers arising from matters outside of the <br />Agreement, including, without limitation, litigation and/or arbitration concerning the issues <br />specifically reserved in the Agreement, shall be allocated between the Retail Customers and the <br />Wholesale Customers utilizing the composite rate used for allocating other Water Enterprise <br />administrative and general expenses. <br />2.If, in any litigation described in subsection B.1 above, attorneys’ fees and <br />costs are awarded to one or more of the Wholesale Customers as prevailing parties, the