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respondent's version of the dispute and a proposed resolution. The Parties shall meet <br />within ten (10) business days following respondent's answer to determine whether the <br />dispute can be resolved amicably. If the dispute is amicably resolved, the Parties shall <br />sign a memorandum of understanding with regards thereto. <br />(3) Step Three Mediation. If the Parties are unable to resolve their <br />differences at Step Two, the Parties will endeavor to settle the dispute by mediation under <br />the mediation rules of the Judicial Arbitration and Mediation Service of Seattle, <br />Washington. Such mediation will be non binding but a condition precedent to having the <br />dispute resolved pursuant to Arbitration, below. Mediation shall commence, unless <br />otherwise agreed, within thirty (30) days of a Party's written request to the other Party for <br />mediation of a dispute. Any resolution of the dispute at this stage shall be reduced to <br />writing and, if the resolution involves an interpretation of the Agreement herein, the <br />Agreement herein shall be amended to include the interpretation. <br />(4) Sten Four Arbitration. If the Parties are unable to resolve their <br />differences at Step Three, the dispute will be resolved by arbitration. A written notice <br />requesting arbitration must be delivered to the other Parties. The Parties will select an <br />arbitrator by mutual agreement. If the parties cannot agree on an arbitrator within 10 <br />working days after the arbitration request notice has been received, then the dispute will <br />be referred to Judicial Arbitration and Mediation Services, Inc. of Seattle, Washington, <br />and an arbitrator will be selected either by mutual agreement of the Parties or, failing that, <br />by the appointment by each Party of a non interested representative who shall jointly <br />choose an arbitrator. <br />Section 10. Modification. This Agreement may be amended or terminated only <br />upon consent of both Parties hereto. Any amendment or termination shall be in writing <br />and signed by the parties. <br />Section 11. Non Waiver. The waiver by any Party of any breach of any term, <br />covenant, or condition of this Agreement shall not be deemed a waiver of such term, <br />covenant, or condition or any subsequent breach of the same or any other term, covenant, <br />or condition of this Agreement. <br />Section 12. Impairment of Rights. Nothing in this agreement shall impair a <br />Party's right to seek injunctive relief from the Court if immediate and irreparable injury, <br />loss or damage to any rights arising from this Agreement will occur before Arbitration <br />can be conducted. <br />Section 13. Record Keeping. The records and documents with respect to all <br />matters covered by this Agreement shall be subject to audit by the Parties during the term <br />of this Agreement and three (3) years after termination or such other longer period as may <br />be required by applicable law. <br />INTERLOCAL AGREEMENT <br />Page 4 of 6 <br />