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3.9 Following twelve (12) months of service or any time thereafter, if individual item(s) cannot, in Climatec LLC's <br />opinion, be properly repaired on-site because of excessive wear or deterioration, Climatec LLC may withdraw the <br />item(s) from coverage upon ninety (90) days prior written notice. Energy savings may be adjusted accordingly. <br />3.10 This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California. <br />4.0 Miscellaneous Provisions: <br />4.1 The services provided hereunder may occur on active Purchaser sites. As such, Climatec LLC shall ensure that its <br />services on and around the Purchaser site comply with all applicable laws, regulations and standards and any other <br />legal requirements which may be applicable to Climatec LLC's activities on or about the Purchaser sites. While the <br />Purchaser shall reasonably assist Climatec LLC in determining the applicable requirements, it shall be Climatec LLC's <br />sole responsibility for determining and complying with all applicable laws, regulations, and standards. <br />4.2 Dis.pute Resolution: <br />4.2.1 Disputes: This Section shall apply to any dispute arising under or related to this Agreement (whether arising in <br />contract, tort or otherwise, and whether arising at law or in equity), including (a) any dispute regarding the <br />performance, validity or enforceability of any provision of this Agreement or whether any Party is in compliance with, <br />or breach of, any provisions of this Agreement and (b) the applicability of this Section to a particular dispute. Any <br />dispute to which this Section applies is referred to herein as a "Dispute." <br />4.2.2 Negotiation to Resolve Disputes: If a Dispute arises, the Parties shall attempt to resolve such dispute through <br />the following procedure: <br />4.2.2.1 First, the representatives of each of the Parties shall promptly meet (whether by phone or in person) in a <br />good faith attempt to resolve the Dispute; <br />4.2.2.2 Second, if the Dispute is still unresolved after 20 days following the commencement of the negotiations <br />described in Section 4.2.2.1 then the designated executive officer of each Party shall meet (whether by phone or in <br />person) in a good faith attempt to resolve the Dispute; <br />4.2.2.3 Third, if the Dispute is still unresolved after 10 days following the commencement of the negotiations <br />described in Section 4.2.2.2, then either Party may submit such Dispute to arbitration pursuant to Section 4.2.2.4; <br />4.2.2.4 Any Dispute arising from or relating to this Agreement that is adjudicated pursuant to this Section 4.2.2.4 <br />shall be arbitrated in San Leandro, California. The arbitration shall be administered by JAMS in accordance with its <br />Comprehensive Arbitration Rules and Procedures, and judgment on any award may be entered in any court of <br />competent jurisdiction. If the Parties agree, a mediator may be consulted prior to arbitration. The prevailing party in <br />any dispute arising out of this Agreement shall be entitled to reasonable attorneys' fees and costs; and <br />4.2.2.5 Pending a final resolution of a Dispute, the Parties shall each proceed diligently and faithfully with <br />performance of their respective obligations under this Agreement. <br />4.3 Indemnification: <br />Climatec LLC shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, elected <br />officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and <br />costs (including without limitation, reasonable attorney's fees and costs and fees of litigation) (collectively, "Liability' <br />of every nature (except 3rd party consequential claims) arising out of or in connection with Climatec LLC's <br />performance of the services called for or its failure to comply with any of its obligations contained in this Agreement, <br />except such Liability caused by the negligence or misconduct of City. <br />* CLIMATEC R <br />rIlE I i i:�ir3 1 A.11 l )ll•N,i.` .% I I I.:I irl 7: I1f 4Y <br />City of San Leandro <br />M&V Agreement <br />Page 4 of 6 <br />