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TranSystems Corporation - LGM Construction

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proposed discovery schedules to the arbitrators at the pre-hearing<br />

conference. The scope and duration of discovery will be within the<br />

arbitrators' sole discretion. The arbitrators may order a pre-hearing<br />

exchange of information by the parties, including, without<br />

limitation, production of requested documents, exchange of<br />

summaries of testimony of proposed witnesses, and examination<br />

by deposition of parties and third-party witnesses. The arbitrators<br />

will exercise their discretion in favor of discovery that is<br />

reasonable under the circumstances.<br />

(ii) Any party may be represented by counsel or other authorized<br />

representative. In rendering their decision, the arbitrators will<br />

determine the parties' rights and obligations according to the<br />

substantive and procedural laws of the state in which the Project is<br />

located and the terms of this Agreement. The arbitrators must base<br />

their decision on the evidence introduced at the hearing, including<br />

all logical and reasonable inferences from that evidence. The<br />

arbitrators may make any determination and grant any remedy or<br />

relief that is just and equitable. The arbitrators must accompany<br />

their decision with a written statement of decision explaining the<br />

factual and legal basis for the decision as to each of the principal<br />

disputed issues. The arbitrators may award costs, including,<br />

without limitation attorneys' fees and expert and witness costs, to<br />

the prevailing party, if any, as designated by the arbitrators. The<br />

party that does not prevail in the arbitration, as designated by the<br />

arbitrators, as part of their decision, must pay the arbitrators' fees<br />

and costs. The arbitrators will designate a party as the prevailing<br />

party if that party's proposal for the resolution of dispute is the<br />

closer to that adopted by the arbitrators.<br />

(d) If any person involved in the meetings contemplated in Section 26.01(a) above<br />

wishes an attorney to accompany him or her to any of those meetings, that person will give<br />

written notice of that intention to the other party at least three business days in advance of any<br />

meeting that the attorney will attend and the other party may also cause an attorney representing<br />

its interests to be present at each such meeting.<br />

(e) The parties may extend any deadline specified in this Article 26 by mutual agreement.<br />

(f) The parties will treat all negotiations conducted in accordance with the requirements<br />

of this Article 26, including, without limitation, the exchange of position memoranda, as<br />

confidential and as compromise and settlement negotiations for purposes of the Federal Rules of<br />

Evidence and the rules of evidence of any court having jurisdiction over the dispute.<br />

(g) If multiple disputes between the parties are pending concurrently, the parties may<br />

consolidate those disputes for purposes of the mediation and arbitration stages described above.<br />

58

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