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C. Materials and Supplies. The Receiving Party must reimburse the Responding Party in kind <br /> or at actual replacement cost, plus handling charges, for use of expendable or non- <br /> returnable supplies. The Responding Party must not charge direct fees or rental charges to <br /> the Receiving Party for other supplies and reusable items that are returned to the <br /> Responding Party in a clean, damage-free condition. Reusable supplies that are returned to <br /> the Responding Party with damage must be treated as expendable supplies for purposes of <br /> cost reimbursement. <br /> D. Payment Period. The Responding Party must provide an itemized bill to the Receiving Party <br /> for all expenses it incurred as a result of providing Assistance under this Agreement. The <br /> Responding Party must send the itemized bill not later than ninety (90) days following the <br /> end of the Period of Assistance. The Receiving Party must pay the undisputed portion of the <br /> bill in full on or before the forty-fifth (45th) day following the billing date. Unpaid bills become <br /> delinquent upon the forty-sixth (46th) day following the billing date, and, once delinquent, the <br /> bill accrues interest at the standard rate of interest charged by the Responding Party for <br /> unpaid bills. If the Responding Party does not have a standard rate, the interest rate shall <br /> be the rate of prime, as reported by the Wall Street Journal, plus two percent (2%) per <br /> annum. Any undisputed amount must be resolved using the procedures set forth in Article <br /> VII. <br /> ARTICLE VII <br /> DISPUTES <br /> The Parties agree to act in good faith to undertake resolution of disputes, in an equitable and <br /> timely manner and in accordance with the provisions of this Agreement. If disputes cannot be <br /> resolved informally by the Parties, the following procedures shall be used: <br /> A. Mediation. If there is a failure between Parties to resolve a dispute on their own, the Parties <br /> shall first attempt to mediate the dispute. The Parties shall agree upon a mediator, or if they <br /> cannot agree, the Statewide Committee Chair shall select a mediator. If the Chair of the <br /> Statewide Committee, has a conflict of interest, the duty for selecting a mediator shall pass <br /> to the Vice-Chair. <br /> B. Arbitration. If the dispute remains unresolved following mediation, the dispute shall be <br /> submitted to arbitration under the Uniform Arbitration Act, Minnesota Statutes, Sections <br /> 572.08-.30. If the Parties cannot agree on one or more arbitrators, the arbitrator(s) shall be <br /> selected using the same procedure set forth for selecting a mediator. The decision of the <br /> majority of the arbitrators shall not be binding upon the Parties. If the arbitration decision is <br /> not accepted, the Parties may pursue any other legal remedy to resolve the dispute. <br /> ARTICLE VIII <br /> RECEIVING PARTY'S DUTY TO INDEMNIFY <br /> For the purposes Minnesota Municipal Tort Liability Act, Minnesota Statutes, Chapter 466, the <br /> employees and officers of the Responding Party are deemed to be employees (as defined in <br /> Minnesota Statutes, Section 466.01, subdivision 6) of the Receiving Party. <br /> The Receiving Party shall defend, indemnify and hold harmless, the Responding Party, its <br /> officers, employees, volunteers and agents from all claims, loss, damage, injury, and liability of <br /> 7 <br />