1.     This agreement is made between ___[names of parties]___
regarding a dispute that has arisen between them.

2.     The parties submit their existing dispute for
___[nonbinding/binding]___ arbitration.

3.     The dispute involves ___[briefly describe nature of
controversy, amount of money at issue, and remedy sought]___.

4.     The Arbitrator

                                         [Option 1]

       The parties agree to ___[name]___ to serve as arbitrator.

                                         [Option 2]

       The parties request ___[name]___, an arbitration service, to
provide the names of three potential arbitrators, giving each
party the opportunity to strike one name. The remaining
arbitrator will be accepted by the parties.

                                         [Option 3]

       The parties agree to arbitration by a three-member panel. The
parties request ___[name]___, an arbitration service, to provide
the names of five potential arbitrators, giving each party the
opportunity to strike one name. The three remaining arbitrators
will be accepted by the parties as the arbitration panel.


5.     Prehearing Conference

       A prehearing conference will be scheduled at which the parties
will agree on procedural matters, arrange for the exchange of
information, obtain stipulations, and attempt to narrow the
issues to be arbitrated.

6.     Discovery

                                         [Option 1]

       The parties will submit a proposed discovery schedule to the
arbitrator(s) at the prehearing conference. The scope and
duration of discovery will be within the sole discretion of the

                                         [Option 2]

       It is our objective to expedite the arbitration proceedings by
placing the following limitations on discovery:

       a.  Each party may propound only one interrogatory requesting
the names and addresses of the witnesses to be called at the
arbitration hearing.

       b.  On a date to be determined at the prehearing conference,
each party may serve one request for the production of documents.
The documents are to be exchanged within 15 days after the

       c.  Each party may depose ___[insert number]___ witnesses. Each
deposition must be concluded within four hours and all
depositions must be taken within 30 days after the prehearing
conference. Any party deposing an opponent's expert must pay the
expert's fee for attending the deposition.

                                         [Option 3]

       It is our objective to expedite the arbitration proceedings by
eliminating discovery as provided by the Discovery Act (Code of
Civil Procedure sections 2016-2036). Instead of discovery, the
parties agree to the following exchange of information:

       a.  Either party may make a written demand for lists of the
witnesses to be called or the documents to be introduced at the
hearing. The demand must be received before the prehearing

       b.  The lists must be served within 15 days after the demand
has been mailed.

       c.  No depositions may be taken for discovery.


7.     The Hearing

       a.  Hearing Briefs

       The parties must file briefs with the arbitrator(s) at least
three days before the hearing, specifying the facts each intends
to prove and analyzing the applicable law.

       b.  Powers of Arbitrator


       Judicial rules of evidence and procedure relating to the
conduct of the hearing, examination of witnesses, and
presentation of evidence do not apply. The arbitrator(s) will
admit any relevant evidence, including hearsay, if it is the sort
of evidence on which responsible persons are accustomed to rely
in the conduct of serious affairs, regardless of the
admissibility of such evidence in a court of law.

                  (2)Inspection and Investigation

       An arbitrator finding it necessary to make an investigation or
inspection must notify the parties of the time and place. The
arbitrator must provide them with an oral or written report and
give them an opportunity to comment.


       The arbitrator(s) may, without special notice, recess the
hearing and reconvene at reasonable and warranted times and

                  (4)Closing the Hearing

       The arbitrator(s) will close the hearing after presentation of
the evidence or receipt of final briefs, if requested. The time
limit within which the award must be filed begins to run from the
closing of the hearing.

                  (5)Reopening the Hearing

       The arbitrator(s) may reopen the hearing at the request of
either party any time before the award is made.

       c.  Rights of Parties

                  (1)Representation by Counsel

       The parties have the right to representation by legal counsel
throughout the arbitration proceedings.

                  (2)Presentation of Evidence and Cross-Examination

       Within reasonable limits, both sides at the hearing may call
and examine witnesses for relevant testimony, introduce relevant
exhibits or other documents, cross-examine or impeach witnesses
who have testified orally on any matter relevant to the issues,
and otherwise rebut evidence, as long as these rights are
exercised in an efficient and expeditious manner.

                  (3)Record of Hearing

       Any party desiring a stenographic record may hire a court
reporter to attend the proceedings. The requesting party must
notify the other parties of the arrangements before the hearing
and must pay the costs.


       On the request of any party, the oral evidence will be given
under oath.

       d.  The Award


       The decision will be based on the evidence introduced at the
hearing, including all logical and reasonable inferences made
from it. The arbitrator(s) may grant any remedy or relief that is
just and equitable.


       The award must be mailed promptly to the parties, but no later
than 30 days from the closing of the hearing.


       The award, which must be made in writing and signed by either
the arbitrator or a majority of the arbitrators, will contain a
concise statement of the reasons supporting the decision.

       e.  Fees and Expenses


       Each party must pay its own witness fees.


       Each party must pay its prorata share of the arbitrator fees.


                                         [Option 1]

       The arbitrator(s) ___[has/have]___ the authority to award
attorneys' fees to the prevailing party.

                                         [Option 2]

       The arbitrator(s) must award attorneys' fees to the prevailing

                                         [Option 3]

       Each party must pay its own attorneys' fees.


       f.  Finality

       The award can be judicially confirmed, corrected, or vacated
under Code of Civil Procedure sections 1285-1288.8. The award is
final and binding, and there is no direct appeal from the award
on the grounds of error in the application of the law. 

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Legal Forms : Set Two