INNOVATIVE CLAIM SOLUTIONS (ICS)

K. File Storage. Pursuant to RR 15400.2 of the California Code of Regulations, all files closed for more than 5 (five) years shall be identified. Upon CLIENT direction ICS shall return the file(s)to client, destroy file(s) or maintain file(s) at CLIENT expense with an off-site storage facility. L. Cooperation - In the event of early termination or non-renewal, both parties will cooperate in good faith to implement a transition to a new service provider with minimum disruption to the provision of benefits to workers. ICS will make available to CLIENT, and to a new service provider, all files, summary data, records and information developed with respect to this Agreement, including all loss records and a record layout describing the format of the data tape. Such information shall be made available electronically whenever possible. The CLIENT shall assume all responsibility for open claims as of the effective date of termination. M. Files - All claim files, records, reports and other documents pertaining to employee claims are the property of the CLIENT and CLIENT may audit or inspect the files at any time during normal business hours. ICS shall turn over possession of all files and other documents to the CLIENT or its designee upon the effective date of termination or non- renewal of this Agreement. The CLIENT shall allow ICS to review all files and other documents with information relating to its performance pursuant to this Agreement. N. Penalties and Fines. ICS and client agree to the following standards,protocols and principals relating to the fines and penalties: 1. ICS and CLIENT hereto acknowledge the various penalties and administrative fines that are contained in The California Workers' Compensation Reform Act of 1989 (effective January 1, 1990 and January 1, 1991)that may be imposed on both employers and claim administrators. 2. ICS will be responsible for any fines or penalties associated with questionable or controverted claims that ICS denies without first consulting and obtaining approval by the CLIENT for denial of the claim(s). ICS will not be responsible for any fines or penalties levied by the Division of Workers' Compensation or any other judicial or quasi-judicial organization for improper denial of a claim(s) if, over the objections of ICS, ICS has denied said claim(s) at the direction of the CLIENT. 3. The CLIENT shall be responsible for all penalties where ICS has not been given sufficient notice such that ICS has had at least seven(7) working days in which to investigate the claim and to pay temporary disability or send the required wage continuation notice before the penalties were assessed. ICS shall be responsible for all penalties in which it has had seven(7) or more working days in which to investigate and pay temporary disability or send a wage continuation notice. For the purposes of this section "working day" means all days except Saturdays, Sundays and commonly observed holidays. 4. The services as described in this Agreement shall be performed in all material respects in accordance with applicable laws, rules, regulations and standards if governmental authorities including, in particular, applicable Workers' 11 ! Page DocuSign Envelope ID: 177B557A-79FB-4E9E-B338-6359A5FCBAB8