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"".-------- Single Source Medical provides durable medical equipment (DME) and other supplies to the injured workers of City at competitively low rates. City shall have access to the best pricing offered by Single Source Medical, and will automatically be eligible to receive available discount rates. In the event that City elects not to participate in the goods and services offered by either of CMl's affiliated entities, but rather to contract through unrelated vendors, please contact CMl's executive staff to make these arrangements. VII. PENAL TIES AND CITATIONS CMI shall indemnify and save harmless City from and against all losses and all claims, demands, payments, suits, actions, recoveries, and judgments of every nature and description brought or recovered against it, by reason of any act or omission of CMI, its agents or employees, in the execution of the service or in consequences of any negligence or carelessness of the same and shall provide an Errors and Omissions policy in the amount of $1,000,000 to assure that City will be protected from any errors and omissions resulting from the work of CMI. The parties acknowledge that the California Workers' Compensation Reform Act of 1989 requires first payment of Temporary Disability indemnity within 14 days of the City's knowledge of the injury and generally imposes an automatic penalty of 10% of the amount delayed for late indemnity payments which shall be payable directly to the injured employee without application. Furthermore, the parties agree that unless CMI is provided with notice of the claim within five (5) days of the City's knowledge of the injury, the above-referenced automatic penalty of 10% shall be and remain the sole responsibility of City. CMI will agree, however, to make a good faith effort with due F:A TTY/AGR/AGR007 6 010802/STY.cls