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insured, its subcontractors, agents, officers and employees in the performance of the construction <br />contract. OCWD shall furnish RETAILER with certificates of insurance and endorsements <br />showing insurance coverage as described above. RETAILER shall incur no expense in <br />connection with obtaining and maintaining any insurance required tinder paragraph 7.2 and 7.3. <br />SECTION EIGHT: DISPUTES <br />8.1 In the event of any dispute arising under this Agreement, the parties hereto agree <br />to utilize the arbitration procedure set forth in ttus Section Eight as the sole and exclusive means <br />of resolving any such dispute. <br />8.2 Arbitration shall be initiated by any party hereto serving upon any other party a <br />written demand for arbitration, which demand shall describe with specificity the nature of the <br />dispute. Except as specified herein, the arbitration shall be conducted pursuant to the provisions <br />of California Code of Civil Procedure, Section 1280, et seq. The parties hereto agree that there <br />shall be a single neutral arbitrator who shall be a civil engineer knowledgeable in water facilities <br />operation and reclaimed wastewater, who shall be selected in the following manner: <br />8.2.1 The demand for arbitration shall include a list of the names of five (5) persons <br />acceptable to the demanding party for appointment as arbitrator. The responding <br />party shall determine if any of the names submitted are acceptable, and, if so, shall <br />inform the other party within ten (10) days of actual receipt of the arbitration <br />demand, and such person will be designated as arbitrator; <br />8.2.2 In the event that none of the names submitted by the demanding party is acceptable <br />to the responding party, or if for any reason the arbitrator selected is unable to serve, <br />the responding party shall submit to the demanding party a list of the names of five <br />(5) persons acceptable to the responding party for the appointment as arbitrator. The <br />demanding party shall in turn have ten (10) days from actual receipt of the list in <br />which to determine if one such person is acceptable; <br />8.2.3 If the parties are unable mutually to agree upon a neutral arbitrator as described <br />above, the matter of the selection of an arbitrator, qualified as above, shall be <br />submitted to the Orange County Superior Court pursuant to Code of Civil Procedure <br />Section 1281.6. Upon selection of an arbitrator, the arbitration shall be conducted <br />consistent with the provisions of Code of Civil Procedure Section 1280, et seq., as <br />are deemed practicable by the arbitrator, considering the nature of the dispute. <br />8.3 The costs of arbitration, including but not limited to reasonable attorneys' fees, <br />shall not be recoverable by the party prevailing in the arbitration, including the court costs and <br />reasonable attorneys' fees incurred if an arbitration conducted hereunder is appealed to a court <br />pursuant to the procedures set forth in Code of Civil Procedure Section 1280, et seq. This <br />provision shall not relieve any party of the duty to indemnity, defend, and hold harrnless the <br />other party under this Agreement, <br />12 of 20 <br />