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201 the Claim shall be deemed waived and abandoned and the Respondent shall be relieved of any and all liability to Claimant arising out of the Claim. If the Claimant submits the Claim to binding arbitration in accordance with this Section, the arbitration shall be conducted in accordance with the following: (a) Initiation of Arbitration. The arbitration shall be initiated by either party delivering to the other a Notice of Intention to Arbitrate as provided for in the American Arbitration Association ( "AAA ") Commercial Arbitration Rules or such other AAA rules as the AAA determines to be applicable (the "AAA Rules "). A Respondent may join as a party to the arbitration any Bound Party who may be liable to the Respondent or the Claimant with respect to the Claim. (b) Governing Procedures. The arbitration shall be conducted in accordance with the AAA Rules. In the event of a conflict between the AAA Rules and this Section, the provisions of this Section shall govern. (c) Appointment of Arbitrator. The parties shall appoint a single arbitrator by mutual agreement. If the parties have not agreed within ten (10) days of the date of the Notice of Intention to Arbitrate on the selection of an arbitrator willing to serve, a qualified arbitrator will be appointed by AAA in accordance with AAA Rules. Any arbitrator appointed in accordance with this Subsection (c) is referred to in this Section as the "Arbitrator ". (d) Qualifications of Arbitrator. The Arbitrator must have completed all necessary training to act as an arbitrator under AAA Rules and shall be neutral and impartial, knowledgeable as to the subject matter involved in the dispute, and experienced in arbitration proceedings. (e) Disclosure. Any potential Arbitrator shall promptly disclose to the parties all actual or perceived conflicts of interest involving the dispute or the parties. No Arbitrator may serve if he has a conflict of interest involving the subject matter of the dispute or the parties. If an Arbitrator resigns or becomes unwilling to continue to serve as Arbitrator; a replacement shall be selected in accordance with the procedure set forth in Subsection (c) above. (f) Compensation. The Arbitrator shall be fully compensated for all time spent in connection with the arbitration proceedings in accordance with the Arbitrator's usual hourly rate, unless otherwise agreed to by the parties, for all time spent in connection with the arbitration proceeding. Pending the final award, the Arbitrator's compensation and expenses shall be advanced equally by the parties. Preliminary Hearing. Within thirty (30) days after the Arbitrator has been appointed, a preliminary hearing among the Arbitrator and counsel for the parties shall be held for the purpose of developing a plan for the management of the arbitration, which shall then be memorialized in an appropriate order. The matters that may be addressed include (i) definition of issues; (ii) scope, timing, and types of discovery, if any; (iii) schedule and place(s) of hearings; (iv) setting of other timetables; (v) submission of motions and briefs; (vi) whether and to what extent expert testimony will be required, whether the Arbitrator should engage one or more neutral experts, and whether engagement of experts by the (g) Page 54 of 68