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ARTICLE XI <br /> DISPUTE RESOLUTION <br /> 140. General. Any dispute, controversy or claim that arises out of or relates to this <br /> Agreement(including any dispute over the existence,validity,interpretation,performance,breach <br /> or termination thereof)(a"Dispute")shall be resolved in accordance with the procedures specified <br /> in this Article XI prior to any party initiating litigation regarding such Dispute, except as set forth <br /> in Paragraph 146 of the Agreement. Each Party shall bear its own costs incurred in connection <br /> with any dispute resolution process under this Article. The entire dispute resolution process set <br /> forth in this Article XI is a compromise negotiation. Subject to the North Carolina Public Records <br /> Act and other applicable Laws, all offers, promises, conduct and statements, whether oral or <br /> written, made in the course of dispute resolution by any of the Parties, their agents, employees, <br /> experts and attorneys are confidential. Subject to the North Carolina Public Records Act and other <br /> applicable Laws, such offers, promises, conduct and statements are privileged under any <br /> applicable arbitration privilege, are subject to Rule 408 of the Federal Rules of Evidence and any <br /> state counterpart rules or doctrine and are inadmissible and not discoverable for any purpose, <br /> including impeachment, in litigation between the Parties to the litigation;provided, however,that <br /> evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or <br /> non-discoverable as a result of its presentation or use during the dispute resolution process <br /> hereunder. <br /> 141. Notice. If a Dispute arises under this Agreement the claimant Party (the <br /> "Claimant") shall provide a written notice of the Dispute ("Notice of Dispute")to the other Party <br /> ("Respondent"), which shall contain a reasonably detailed statement of the nature of the Dispute <br /> and the relief requested. A Notice of Termination issued in accordance with Article VI shall be <br /> deemed a Notice of Dispute for purposes of this Article XI. <br /> 46 <br /> {00018638.DOC 2-124} <br />