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California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. XV.PROFESSIONAL LICENSES Contractor shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United Sates, the State of California, the City of Santa Ana and all other governmental agencies. Contractor shall notify the City immediately and in writing of their inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. XVI.RESPONSIBILITY FOR DAMAGES The Contractor shall be responsible for all damages to persons and/or property that occur as a result of the fault or negligence of said Contractor or his employees in connection with the performance of this work. XVILFAILURE TO PERFORM SATISFACTORILY A. It is agreed and understood that in the short run, if the Contractor fails to perform the work as specified herein, the Director, 1) will pay only for the amount of service received as determined by the Director with an appropriate downward adjustment in contract price, or 2) may have such required work done by City forces or otherwise, and charge the cost thereof to the Contractor. Such adjustments will be the estimated cost for performance by City forces plus City overhead and will include overtime pay as required to complete work. B. If the Contractor performs the work in such a manner that the amount of payment withheld due to substandard performance, nonperformance and forfeiture for noncompletion per schedule totals five (5) percent of the total contract price, the City will put the Contractor under notice of noncompliance. If the Contractor continues to perform the work in such a manner that the amount of payment withheld due to substandard performance, nonperformance and forfeiture for noncompletion per schedule totals ten (10) percent of the total contract price, the contract is subject to cancellation at the City's option. In the event of cancellation for unsatisfactory performance, the original Contractor shall reimburse the City for damage accrued by changing contractors. XVIII.SAFETY REQUIREMENTS All work performed under this contract shall be performed in a manner as to provide required maximum safety to the public and where applicable, comply with all safety standards required by CAL-OSHA. The Director reserves the right to issue restraint or cease and desist orders to the Contractor when unsafe or harmful acts are observed or reported relative to the performance of the work under this contract. XIX.HAZARDOUS CONDITIONS 20D-10