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mediator shall disclose any circumstances likely to create a presumption of bias or prevent a prompt <br />commencement of the mediation process. <br />Each party shall submit a brief memorandum setting forth its position with regard to the issues that <br />need to be resolved within ten days of the selection of the mediator or within such time frame established by <br />the mediator. The mediation shall be commenced within ten days following the submittal of the memoranda. <br />The mediation shall be held in the county in which the property is located or such other place as is mutually <br />acceptable to the parties. <br />The mediator has discretion to conduct the mediation in the manner in which the mediator believes is <br />most appropriate for reaching a settlement of the Claim. The mediator is authorized to conduct joint and <br />separate meetings with the parties and to make oral and written recommendations for settlement. Whenever <br />necessary, the mediator may also obtain expert advice concerning technical aspects of the Claim, provided <br />the parties agree and assume the expenses of obtaining such advice. The mediator does not have the <br />authority to impose a settlement on the parties. <br />The mediation shall be subject to the provisions of Evidence Code sections 1115 through 1128, or <br />any successor statutes thereto, except as the parties may agree otherwise in writing or orally in accordance <br />with the requirements of Evidence Code section 1118. <br />Persons otherthan the parties, their representatives and the mediator mayattend mediation sessions <br />only with the permission of the parties and the consent of the mediator. Confidential information disclosed to <br />a mediator by the parties or by witnesses in the course of the mediation shall not be divulged by the mediator. <br />All records, reports, or other documents received by the mediator while serving in such capacity shall be <br />confidential. There shall be no stenographic record of the mediation process. <br />If the Claim is not resolved in accordance with these nonadversarial prelitigation procedures, the <br />Claim shall be resolved in accordance with the binding adversarial procedures set forth in Section 2. <br />2. Binding Adversarial Procedures. If Claimant and Declarant cannot resolve the entire Claim in <br />accordance with the procedures in Section 1 of this Exhibit or if corrective action is undertaken by Declarant <br />and the parties disagree on the adequacy of the corrective action or any other claims arising from the <br />corrective action, including any unresolved claims arising out of the corrective action undertaken by Declarant <br />or Declarant's agents, either party may commence binding arbitration by submitting the Claim to JAMS for <br />resolution under the JAMS commercial arbitration rules. <br />The Association, each Owner and Declarant acknowledge and agree that any Claim involving the <br />design, specification, surveying, grading, construction, installation or operation of any Improvement or <br />landscaping within the Development, including any Claim under Civil Code sections 896 and 897, involves <br />interstate commerce and is subject to and governed by the Federal Arbitration Act, notwithstanding any State <br />or local laws or ordinances to the contrary and notwithstanding the fact the parties have elected to utilize <br />certain State law arbitration procedures to resolve the Claim. The following provisions and procedures shall <br />apply in all cases unless the parties agree otherwise in writing: <br />(i) the proceedings shall be heard in San Mateo County, California; <br />(ii) the matter shall be heard by a single arbitrator who shall be a retired judge or <br />attorney with at least five years' experience in real estate matters; <br />(iii) the fee to initiate the arbitration shall be paid by the Declarant and the arbitrator's <br />fees shall be borne equally by Declarant and the Claimant, unless Declarant agrees in writing to advance the <br />arbitrator's fees, provided that arbitration costs and fees, including any initiation fee and the arbitrator's fees, <br />ultimately shall be borne as determined by the arbitrator as provided in subparagraph (ix); <br />August 18, 2016 <br />