Notice of Compensation Arrangements

American Arbitration Association

Ernesto and Theresa Castanon

Vs.
Fairway Homes West, Inc.

Case# 01-22-0002-2105

Notice of Compensation Arrangements for Sharon Shively

You have been invited to serve as an arbitrator in the above matter. It is important that you understand the
terms of your compensation and the role you play in ensuring that you receive payment for fees and
expenses that you may incur during your service.

This invitation to serve is based on our assumption that, you are willing to comply with the American
Arbitration Association's (AAA) Arbitrator Billing Guidelines, which is attached to this document and also
available in Panelist eCenter at www.adr.org. If you expect to assess charges that are not detailed on your
AAA Resume and referenced below, (or if you are a non-AAA arbitrator and such charges are not reflected
below), you must notify the AAA prior to accepting your appointment so that the parties can determine
whether they still seek your services as an arbitrator.

Your Compensation

Rules: "Home Construction Arbitration Rules"

Procedures: "Level 1"

You will be compensated at the following rates, per the rate structure indicated on your AAA resume or in
accordance with a fixed rate as prescribed in the rules and/or procedures. If you are a non-AAA arbitrator,
you will be compensated based upon the rates provided to your case administrator and shared with the
parties or if applicable in accordance with a fixed-rate prescribed in the rules and/or procedures.

Rate Type Rate Frequency Rate

Hearing Rate DAY $1,250.00
Study Rate DAY $0.00
Travel Rate DAY $0.00
Cancellation Rate DAY $0.00
Rate Comment $1000 for Desk or Telephonic hearing or $1250 for In-Person
hearing. This contemplates a one-day hearing. If additional days of
hearing, study time, or site visits are needed, the parties will be
responsible for sharing in the additional.
cost at the rate listed on the arbitrator's resume.

In as much as you are agreeing to serve in this matter at the above rate, any subsequent change to your
published rate after your appointment will not apply to this case.

Commercial Expedited and Construction Fast Track Fixed Rates

On cases administered under the Expedited and Fast Track Procedures of the rules, the arbitrator will
receive compensation at rates established by the AAA. Generally, the hearing shall not exceed one day. If
during the preliminary hearing you determine that this matter requires more than one day of hearing,
please consult with your case administrator about billing for the additional day(s). Your case administrator
will discuss and facilitate any necessary changes to your terms of compensation.

If the matter concludes after the preliminary hearing and prior to the final hearing, you will be compensated
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at half of the established rate. Under the Expedited and Fast Track Procedures, you receive no
compensation for study time, travel time, or cancellations.

Consumer Arbitration Rules Fixed Rates

On cases administered under the Consumer Arbitration Rules, the AAA has established fixed rates with the
expectation the case should not require more than one day of hearing. If during the preliminary
management hearing you determine that this matter requires more than one day of hearing, please consult
with your case administrator about billing for the additional day(s). This case will remain under the
Consumer Arbitration Rules regardless of the number of days of hearing or the amount or complexity of
any claim. Under the Consumer Arbitration Rules you receive no compensation for study time, travel time,
or cancellations.

Your Expenses

On most cases, your expenses should be nominal and will be reimbursed immediately after you submit
them. For any single expense over $75, please include a receipt with your request for reimbursement.

If you anticipate that you will incur significant expenses, such as airfare or hotel room costs, please advise
your case administrator in advance so that the parties can be asked to make deposits prior to you incurring
the expense.

Deposits and Payment

Payment for your compensation is the obligation of the parties and it is understood that the American
Arbitration Association has no liability, direct or indirect, for such payment. During the course of the
proceeding the case administrator will ask that you provide an estimate of the amounts needed to cover
your fees. Generally this occurs immediately after the preliminary hearing, although on longer or more
complex cases it can occur immediately upon appointment or after each series of hearings.

Unless you specify otherwise, the parties are advised that deposits are due 30 days prior to the first hearing.
No later than two weeks prior to the hearing, the case administrator will advise you of the total amount on
deposit. Should the parties fail to make deposits in a timely manner, you must determine whether to go
forward, suspend or terminate the proceedings until such time as deposits have been made. Please see the
applicable rules for Remedies for Nonpayment (i.e., Commercial Rule R-57, Construction Rule R-59, and
Consumer Rule R-54). If you decide to go forward without full deposits, you may not subsequently delay
the rendering of the award for lack of payment of your fees. The time to deal with this issue is prior to the
commencement of the hearings. Should you decide to suspend the proceedings, your case administrator can
assist you in issuing an appropriate order to the parties.

If you realize that you are spending more time on this matter than you originally estimated, it is your
obligation to inform the case administrator prior to exhausting the current deposit. The case administrator
will then make arrangements with the parties for additional deposits per your instructions.

In order to receive payment, please submit bills promptly. Your bills should be submitted in a format that is
presentable to the parties, should detail the dates on which the charges were incurred with a description of
the activity performed, and must correspond with the terms of compensation outlined herein. Bills should
be submitted on a regular basis, as appropriate, and should reflect any balance forward. Upon receipt, the
AAA will release payment from the amounts deposited by the parties. Should there be insufficient funds on
deposit you will not receive payment until the parties have made additional deposits. Further, we will not
use one party's deposit to cover another party's obligation without written permission to do so.

In the event your Award is delivered prior to payment by the parties of the agreed upon compensation, the
AAA is authorized but not obligated to seek to collect these monies on your behalf by all lawful means, to
represent you in any action or proceeding for such recovery and to file a claim in any bankruptcy or
insolvency proceeding for such monies. The AAA may prosecute and receive any recovery on your behalf
and has full authority to compromise or settle such claims as may be, in its discretion, appropriate.
However, under no circumstances whatsoever will the AAA be liable for any failure to collect any or all the
 Notice of Compensation Arrangements
monies due. The AAA is authorized to subtract a reasonable amount for collection and attorney's fees.

Failure to Disclose and Forfeiting Compensation

As an arbitrator in this matter, you have an ongoing obligation to disclose any direct or indirect relationship
with the case participants. Your failure to make disclosures in a timely manner would be a serious
transgression and may be grounds for your removal as arbitrator from this case and/or from the AAA's
Roster. Should this occur, you may be required to forfeit the compensation for the time you spent on this
matter after you should have made such disclosures.

IRS Reporting Requirement (For U.S. Residents)

Compensation payments, and the corresponding IRS reporting, will be made either to you individually
(attributed to your Social Security Number) or to your employer (attributed to the Employer Identification
Number), based on the preference you indicated and as recorded in your panel record. If you are unsure of
your current payment preference, you may contact your case administrator or AAA Panel Relations.
Promptly inform the AAA if this information is incorrect or changes during the case, or if an address
correction is necessary.

If the AAA does not have the payee's tax information on record, we must withhold 31% of compensation
payments, as required by the IRS. Reimbursements of expenses are not subject to withholding and are not
reported to the IRS.

Please note that in accordance with Section 7 of the Standards and Responsibilities for Members of the
AAA Roster of Arbitrators and Mediators, compensation AAA Panelists receive on an AAA-administered
case will not be disbursed by the AAA to another ADR Provider Organization. If the undersigned is not on
the AAA Roster, this provision is not applicable.

IRS Reporting Requirement (For Non-U.S. Residents)

Compensation payments, and the corresponding IRS reporting, will be made either to you individually
(attributed to your Social Security Number) or to your employer (attributed to the Employer Identification
Number), based on the preference you indicated and as recorded in your panel record. If you are unsure of
your current payment preference, you may contact your case administrator or AAA Panel Relations.
Promptly inform the ICDR if this information is incorrect or changes during the case, or if an address
correction is necessary.

If the ICDR does not have the payee's tax information on record, we must withhold 31% of compensation
payments, as required by the IRS.

Please also note that if you reside outside of the United States and perform work (e.g., attending a hearing)
in the United States you are required by the IRS to complete either Form 8233 (Exemption from
Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual) or
Form W-BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding).
These forms have to be completed and filed with the ICDR annually regardless if a copy is on file. Failure
to file these forms with the ICDR will result in withholding 31% of compensation payments, as required by
IRS. Reimbursements of expenses are not subject to withholding and are not reported to the IRS.

Acknowledgement

If you are willing to serve on this matter per the compensation terms detailed above, please check the box
below and proceed with completing your oath.

I acknowledge the terms of compensation for this case.

 Notice of Compensation Arrangements
(sbs)

Sharon Shively

August 03, 2022