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PSAPOO: 10112/99 remedies may withhold from compensation owed the other an amount necessary to satisfy its claim against the other. 10.5. The ending ofthis contract under Art. 4 or its early termination under this Art. 10 does not affect Public Agency's duty: (1) to repay CAPeO tor expenditures made in violation of applicable law or policy in accordance with paragraphs 3.3 and 3.4; (2) to preserve its records and permit inspection, copying, and auditing of its records and visitation of its premises and personnel under Art. 8. Art. 11. Dispute Resolution 11.1. The parties desire to resolve disputes arising under this contract without litigation. Accordingly, if a dispute arises, the parties agree to attempt in good faith to resolve the dispute between themselves. To this end, the parties agree not to sue one another, except to enforce compliance with this Art. 11, until they have exhausted the procedures set out in this Art. 11.2. At the written request of either party, each party shall appoint one nonlawyer representative to negotiate informally and in good faith to resolve any dispute arising under this contract. The representatives appointed shall determine the location, format, frequency, and duration of the negotiations. 11.3. If the representatives cannot resolve the dispute within 30 calendar days after the fIrst negotiation meeting, the parties agree to refer the dispute to the Dispute Resolution Center of Austin for mediation in accordance with the Center's mediation procedures by a single mediator assigned by the Center. Each party shall pay half the cost of the Center's mediation servIces. 11.4. The parties agree to continue performing their duties under this contract, which are unaffected by the dispute, during the negotiation and mediation process. Art. 12. Notice to Parties 12.1. Notice to be effective under this contract must be in writing and received by the party against whom it is to operate. Notice is received by a party: (1) when it is delivered to the party personally; (2) on the date shown on the return receipt if mailed by registered or certified mail. return receipt requested, to the party's address specified in paragraph 12.2 and signed on behalf of the party; or (3) three business days after its deposit in the United States mail, with fIrst-class postage affIxed, addressed to the party's address specified in paragraph 12.2. 12.2. CAPeO's address is 2512 IH-35, South, Suite 220, Austin, TX 78704, Attention: Executive Director. Public Agency's address is 630 E. Hopkins. San Marcos, TX 78666-6314 Attention: Larry D. Gilley. City Manager 5