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<br />(Page 1.1 of 20) <br /> <br />to create a presumption of bias or prevent a prompt commencement of the mediation process. <br /> <br />Within ten days ofthe selection of the mediator, each party shall submit a brief memorandum setting <br />forth its position with regard to the issues that need to be resolved. The mediator shall have the right to <br />schedule a pre-mediation conference, and all parties shall attend unless otherwise agreed. The mediation shall <br />be commenced within ten days following the submittal of the memoranda and shall be concluded within 15 <br />calendar days from the commencement of the mediation unless the parties mutually agree to extend the <br />mediation period. The mediation shall be held in San Mateo County, California, or such other place as is <br />mutually acceptable by the parties. <br /> <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 dispute. 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 dispute, 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 /> <br />The mediation shall be subject to the provisions of Evidence Code sections 1115 th rough 1128, or any <br />successor statutes thereto, except as the parties may agree otherwise in writing or orally In accordance with <br />the requirements of Evidence Code section 1118. <br /> <br />The expenses of witnesses for either side shall be paid by the party producing such witnesses. All <br />other expenses of the mediation, including required traveling and other expenses of the mediator, and the <br />expenses of any witnesses, or the cost of any proofs or expert advice produced at the direct request of the <br />mediator, shall be borne equally by the parties unless they agree otherwise. <br /> <br />5.4 Bindina Arbitration. If the parties cannot resolve the claim pursuant to the procedures <br />described in Section 5.3 or if any party to the dispute fails to participate in the mediation process, any party <br />may commence binding arbitration under the commercial rules of the American Arbitration Association or any <br />other arbitration provider that may be mutually acceptable to the parties. The following rules and procedures <br />shall apply in all cases unless the parties agree otherwise in writing: <br /> <br />(i) the proceedings shall be heard in San Mateo County, California; <br /> <br />(ii) the arbitrator need not be an attorney or retired judge; but, if not, the arbitrator <br />must have at least five years' experience in real estate matters; <br /> <br />(iii) any fee to initiate the arbitration shall be paid by the Lot OWner initiating the <br />procedure, provided that the arbitration costs and fees, including any initiation fee, ultimately shall be borne <br />as determined by the arbitrator. <br /> <br />(Iv) the arbitrator shall be appointed within 60 calendar days ofthe administrator's <br />receipt of a written request to arbitrate the dispute. In selecting the arbitrator, the provisions of section <br />1297.121 of the Code of Civil Procedure shall apply. The arbitrator may be challenged for any of the grounds <br />listed therein or in section 1297.124 ofthe Code of Civil Procedure. <br /> <br />(v) the arbitrator may require one or more pre-hearing conferences; <br /> <br />(vi) the parties shall be entitled to discovery to the extent authorized under Code <br />of Civil Procedure section 1283.05; <br /> <br />(vii) the arbitrator shall apply the rules of law, including the rules of evidence, <br />unless expressly waived in writing by both parties; <br /> <br />(viii) the arbitrator's statement of decision shall contain findings of fact and <br />conclusions of law to the extent applicable, and the arbitrator's decision shall be rendered within 20 calendar <br />days of the conclusion of the hearing; <br /> <br />F:\LJW-DAT A\VVPDocsWamtOakw\YamtOakw.goeVl.wpd <br />8 <br /> <br />May 17, 2007 <br />