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covered party in a covered indemnity contract where such attorney fees or costs are attributable to a claim for damages covered by this Memorandum. Damages shall not include those sums owed by a covered party to any employee or former employee as contract damages, any wages, salary, or benefit owed for work actually performed, or (whether prospective or retrospective) resulting from promotion or reinstatement, or any damages owing under an express contract of employment or an express obligation to make severance payments in the event of termination of employment. Damages with respect to employment practices liability also shall not include amounts awarded under a labor grievance or arbitration pursuant to a collective bargaining agreement, nor sums paid pursuant to any judgment or agreement, whether injunctive or otherwise, to undertake actions to correct past discriminatory or unlawful conduct or to establish practices or procedures designed to eliminate or prevent future discriminatory or other unlawful conduct, or any non - monetary relief. 11) Defense costs means all fees and expenses incurred by any covered party, caused by and relating to the adjustment, investigation, defense or litigation of a claim to which this coverage applies, including attorney fees. Defense costs shall include adjusting expenses of a third party claims administrator which are specifically identifiable with a claim subject to this coverage. Defense costs shall not include: (a) the office expenses, salaries of employees or officials, or expenses of the covered party or the Authority; (b) any fee or expense relating to coverage issues or disputes between the Authority and any covered party; or (c) attorney fees, interest on judgments, or costs awarded to a prevailing plaintiff against the covered party. 12) Discrimination means an act or failure to act with respect to any present or former employee or applicant for employment with regard to compensation, terms, conditions, privileges or opportunities of employment because of race, color, religion, age, sex, disability, pregnancy, national origin, sexual orientation, or other protected category or characteristic established pursuant to any applicable federal, state or local statute or ordinance. 13) Employee means a person whose labor or services is engaged and directed by a covered party described in definition 8 (a), (b) or (c) above. This includes part-time, seasonal, and temporary labor or services, as well as any person employed in a Memorandum of Coverage Effective: 0710112019 7