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3.4 Disputes. In the event of any action to enforce this Agreement, for the <br /> interpretation or construction of this Agreement, or on account of any default or breach of this <br /> Agreement, the parties shall first submit any dispute to mediation. In the event that mediation is <br /> unsuccessful, any party may file a formal legal action. The venue for such action shall be in <br /> Snohomish County Superior Court. <br /> 3.5 Entire Agreement; Amendments. This Agreement sets forth the entire <br /> agreement of the parties. This Agreement shall be construed as a whole. No amendment, <br /> change or modification of any provision of this Agreement shall be valid unless set forth in <br /> writing and signed by both parties. <br /> 3.6 Non-waiver; Severability. The failure of either party to insist upon or enforce <br /> strict performance by the other party of any of the provisions of this Agreement or to exercise <br /> any rights or remedies under this Agreement shall not be construed as a waiver or relinquishment <br /> to any extent of such party's right to assert or rely upon any such provisions or rights in that or <br /> any other instance; rather, the same shall be and remain in full force and effect. The invalidity or <br /> unenforceability of any provision of this Agreement shall not affect the other provisions hereof, <br /> and this Agreement shall be construed in all respects as if such invalid or unenforceable <br /> provisions were omitted. <br /> 3.7 Recording; Binding on Successors and Assigns. This Agreement shall be <br /> recorded against the Property and shall be binding upon and inure to the benefit of the respective <br /> successors and assigns of the parties. City is authorized to convey the Transfer Lots, subject to <br /> the provisions of this Agreement. <br /> S:\GDoughty\WINWORD\CSR\AgreementFinal.doc 28 <br /> Seattle/2.8.00 <br />