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<br />by applicable law, in the recruitment, selection, training, utilization, promotion, termination or <br />other employment related activities. Consultant affirms that it is an equal opportunity employer <br />and shall comply with all applicable federal, state and local laws and regulations. <br /> <br />15. DISPUTES <br /> <br />(a). Consultant and City agree to mediate any dispute or claim arising between them out <br />of this Agreement, or any resulting transaction, before resorting to arbitration or court action. <br />Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or <br />claim to which this paragraph applies, any party commences an action without first attempting to <br />resolve the matter through mediation, or refuses to mediate after a request has been made, then <br />that party shall not be entitled to recover attorney fees, even if they would otherwise be available <br />to the party in any such action. <br /> <br />(b). Arbitration of Disputes. In the event any controversy or claim arising out of this <br />contract or a breach thereof cannot be resolved through mediation, as set forth in section 15(a), <br />such dispute shall be settled by final and binding arbitration in accordance with the rules of the <br />American Arbitration Association. The arbitration shall take place before a panel of three <br />arbitrators. Within 30 days of the commencement of the arbitration, each party shall designate in <br />writing a single neutral and independent arbitrator. The two arbitrators designated by the parties <br />shall then select a third arbitrator. The arbitrators shall have a background in either insurance, <br />actuarial science or law. The arbitrators shall have the authority to permit limited discovery, <br />including depositions, prior to the arbitration hearing, and such discovery shall be conducted <br />consistent with the Federal Rules of Civil Procedure. The arbitrators shall have no power or <br />authority to award punitive or exemplary damages. Any arbitration shall be confidential, and <br />except as required by law, neither party may disclose the content or results of any arbitration <br />hereunder without the prior written consent of the other parties, except that disclosure is <br />permitted to a party's auditors and legal advisors. <br /> <br />17. JURISDICTION - VENUE <br /> <br />This Agreement has been executed and delivered in the State of California and the <br />validity, interpretation, performance, and enforcement of any of the clauses ofthis Agreement <br />shall be determined and governed by the laws of the State of California. Both parties further <br />agree that Orange County, California, shall be the venue for any action or proceeding that may <br />be brought or arise out of, in connection with or by reason of this Agreement. <br /> <br />18. PROFESSIONAL LICENSES <br /> <br />Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, <br />permits, approvals, waivers, and exemptions necessary for the provision of the services <br />hereunder and required by the laws and regulations of the United States, the State of California, <br />the City of Santa Ana and all other governmental agencies. Consultant shall notify the City <br />immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, <br />waivers, and exemptions. Said inability shall be cause for termination of this Agreement. <br /> <br />6 <br />