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.- . , 1 9, ATHENS &:JIll ADMINISTRATORS Administrator, Administrator has denied said c1aim(s) at the express written direction of Employer. e. Any controversy between the parties to this Agreement involving the construction or application ofthe terms, provisions, or conditions of this Agreement relating to the payment of penalties or fines shall be submitted to arbitration upon the written request of one party, after service of that request upon the other party. f. Arbitration and controversies relating to the payment of penalties or fines under this Agreement shall comply with and be governed by the provisions ofthe California Arbitration Act, as set forth at sections 1280 et. seq. of the California Code of Civil Procedure. g. Failing informal efforts between the parties to this Agreement to resolve disputes regarding the payment of penalties or fines, each party shall appoint one person to hear and resolve the dispute. These arbitrators, one appointed by each party, shall be known for the purposes of this Agreement as "initial arbitrators". If the "Initial arbitrators" are unable to agree on a resolution of the dispute they shall then choose a third independent and impartial arbitrator whose decision shall be final and conclusive on both parties. h. If a dispute or arbitration under this Agreement is pending at a time when payment of the disputed penalty(s) or fine(s) is either statutorily mandated or when failure to effect payment will result in an Increase in the fine or penalty, or an additional fine or penalty, each party shall bear liability for one-half of the penalty(s) or flne(s) In dispute until such time as the arbitration is concluded and liability for payment of the fine or penalty is finally determined. Once determined, the party adjudged to be liable for the penalty(s) or fine(s) shall reimburse the non-liable party for any portion of the penalty(s) or flne(s) the non-liable party may have paid during the pendency of the arbitration. 7.03 Excess Covera.e or Other Insurance: Administrator, as a part of the regular claims administration process, shall comply with the reporting provisions, guidelines, and requirements Imposed by the Employer's Excess Workers' Compensation Insurance Carrier(s) and other carriers that may be involved in the administration of the Employer's Workers' Compensation Program. However, Employer as policyholder shall continue to be liable for all the duties, requirements, obligations, and penalties imposed by Employer's Carrier(s). VIII. MATERIAL CHANGE 8.01. In the event of material change to Employer's operations, Section II, "Service Fees", to this Agreement shall be subject to renegotiation. "Material Change" shall be defined as the acquisition, merger, or divestiture by Employer of or with another company or business entity, the creation of new business operations not directly related to Employer's current California operations, or the elimination of business operations within the State of California, which could result In a materially significant Increase or decrease in employee population and workers' compensation claims filed In the State of California. The City of Redwood CIty - Oalm Service Asreement - 2010 - 2012 9