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W <br />FIRST AMENDMENT TO AGREEMENT <br />That certain Two Party Claims Servicing Agreement effective July 1, 2002, by and <br />between Tristar Risk Management, (hereinafter referred to as "TRISTAR") and City of <br />Colton, (hereinafter referred to as the "Client") for the period July 1, 2002 through June <br />30, 2005, is amended herein by deleting in its entirety Article II and substituting the <br />following Article II, such amendment to be effective July 1, 2005. All other terms and <br />conditions of the above referenced Agreement remain unchanged. <br />1. Article II <br />The term of this Agreement is July 1, 2005 to June 30, 2006. The annual fee for <br />the Administration of Workers' Compensation Claims is based on an estimated <br />average 60 open indemnity claims. The total annual fees are $63,800 for the <br />period July 1, 2005 to June 30, 2006. Payments will be paid in advance in <br />four quarterly installments. <br />This fee covers the following services: <br />1. Standard monthly Loss Analysis reports as well as Quarterly Loss <br />Control/Risk Analysis Summaries. <br />2. Internal management of all aspects of your Program in Compliance with <br />the legal requirements of the State of California. <br />The fee quoted excludes all allocated claims services which are defined as defined <br />as the costs incurred outside of the scope of normal administrative adjustment <br />services, such as: <br />1. Attorney fees and records. <br />2. Court dispositions. <br />3. Costs and materials for expert witnesses. <br />4. Sub -Rosa or other outside professional investigation services. <br />5. Outside professional assistance in matters of mandatory vocational <br />rehabilitation. <br />6. Any special charges for work which may result from a State <br />auditor of the prior administrator's errors. <br />7. Costs for printed checks, and printing charges of specialized forms <br />not elsewhere used by TRISTAR. <br />