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~eemsat b~t~noe~a ~yfield ~~go aad F.O.P. Lodgr 57 Section 40.5. In the event no agreement has been reached, approved and ratified prior to the expiration of the then-current agreement, either party may notify in writing the American Arbitration Association ("AAA") of the intent to submit the unresolved issues to it to be resolved through binding arbitration. A copy shall also be served upon the other party. The request to arbitrate may be made jointly by the parties. Any issues which have been agreed to by the Village and the F.O.P. shall be submitted as a partial agreement to the F.O.P. membership for approval/disapproval. If the F.O.P. approves the partial agreement, it shall notify the Village in writing cf such action. Thereafter, the Village Council will vote to accept or reject the agreed issues. After the arbitrator has entered his award, said award and the partial agreement, shall constitute the entire Agreement between the Village and the F.O.P. The arbitration hearing will be conducted by AAA in accordance with its rules and procedures. After AAA has received notice of she parties, it shall submit a list of arbitrators ~ to each party,. ar_d the arbitrator shall be chosen by the alternate s~.rike method in accordance with the AAA's current rules within twenty ~ ('20} ~ days of the request for arbitration. The hearing shall be held within forty-five (45) days after the date the arbitrator is chosen. The Village and the F.O.P. shall equally share the cost of services provided by AAA and the arbitrator. The Village and the F.O.P. shall pay the cost of their own witnesses and presentation. Section 40.6. The arbitrator will only have jurisdiction over the unresolved issues and other matters mutually agreed upon by the Village and the F.O.P. The hearing shall be private and will conducted pursuant to the AAA's current rules. Not later than three (3) days before the hearing, the Village and the F.O.P. shall serve on the arbitrator, and the opposing party a written repor~ summarizing the unresolved issues and other matters submitted to the arbitrator, the party's final offer on the issues and the rationale for the position. If, after submission of the parties' reports, mediation efforts by the arbitrator result in a chance of final offer, a party may, with the permission of the arbitrator, submit a revised written offer to the other party through the arbitrator. No change in offers shall be permitted after testimony and evidence is heard on the particular issue involved. Section 40.7. After hearing the parties, the arbitrator shall resolve the dispute between the parties by selecting on an issue- by-issue basis from between either of the party's final offers, taking into consideration the following: Page 4I of 43