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or P. O. Box 1019 Petaluma, CA 94953 -1019 facsimile (707) 763 -8355 Attn: Tom Isaak, President 18.0 DISPUTE RESOLUTION. 18.01 Controversies Subiect to Mediation. Any controversy between the parties regarding the construction or application of this Agreement, and any claim arising out of this Agreement or its breach, shall first be submitted to mediation upon the written request of one party served upon the other party; provided that OPERATOR shall first exhaust its right of appeal under Article 16.0 before serving any such request. 18.02 Selection of Mediator. The parties may agree on a mediator. If they cannot agree on a mediator within ten (10) days after service of the request for mediation, either party may request the American Arbitration Association to provide a list of three (3) possible mediators with each party having the right to strike a name on an alternating basis until one name remains. If either party delays beyond five (5) days in striking a name, then the other party may choose anyone from the remaining list to serve as mediator. 18.03 Mediation Schedule. The mediation shall take place before the mediator in the City of Pleasanton, State of California, at the time and place selected by the mediator unless the parties agree otherwise. The mediator shall select the time and place promptly and shall give each party written notice of the time and place at least ten (10) days before the date selected; provided that the meeting shall take place not less than thirty (30) days after the request for mediation. 18.04 Cost of Mediation. Each party hereto shall bear the attorneys' fees, costs, and expenses incurred by it in connection with such mediation, and both parties shall share equally the costs and expenses attributable to the services of the mediator. 18.05 Other Proceedings. If mediation does not prove successful, either party may institute a proceeding in a court of law or the parties may agree to nonbinding or binding arbitration. 19.0 MISCELLANEOUS PROVISIONS. 19.01 Waiver. No delay or failure on the part of any party in exercising any right hereunder shall impair any such right or any remedy of the party so delaying or failing. No waiver of any provision of this Agreement shall be binding unless executed in writing by the party making the waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. 48