Under the Big O Tires plan, what is the role of arbitrators in resolving disputes?

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29.02 Arbitration. Except for actions related to or based on the Marks or the copyrights in the Materials or to enforce the provisions of Article 20 of this Agreement, which Big O, may bring in a court of competent jurisdiction, all Claims will be submitted for binding arbitration on demand of either party to either the Judicial Arbiter Group or the AAA, as selected by the party submitting the demand. Notwithstanding the language above, if the action is based on a separate agreement or instrument between Franchisee and Big O, such as a promissory note or lease, the dispute resolution procedure in that agreement or instrument will control rather than this Section 29.02; provided, that, at Big O's sole option, any claim of Big O against Franchisee based on a promissory note executed by Franchisee in favor of Big O may be brought in arbitration in conjunction with a dispute between the parties that is subject to arbitration under this Section, regardless of any provisions to the contrary contained in the promissory note. Arbitration proceedings will be conducted in Denver, Colorado and will be heard by one arbitrator in accordance with the then current rules of AAA that apply to commercial arbitration. The decision as to whether a claim is subject to mandatory arbitration shall be made by an arbitrator, not a court, except that the decision whether the arbitration may proceed as a class action shall be made by the court. The arbitration proceeding and all other hearings shall be conducted in English only, although Franchisee shall have the right, at Franchisee's option and sole expense, to have a translator present at the proceeding or other hearings. The expense of a translator shall not be considered a cost or expense related to an action pursuant to Section 29.07(b) of this Agreement. The parties further agree that, in connection with any such arbitration proceeding, each will file any compulsory counterclaim, as defined by Rule 13 of the Federal Rules of Civil Procedure, within 30 days after the date of the filing of the claim to which it relates. Any party to an arbitration proceeding may apply to the arbitrator for reasonable discovery from the other. In this Agreement "reasonable discovery"

means a party may submit no more than 10 interrogatories, including subparts, 25 requests for admission, 25 document requests, and three depositions per side of the dispute. The foregoing discovery rights and limitations shall control over any contradictory discovery rules of AAA, unless the parties agree otherwise.

29.03. Arbitration Award. Subject to Section 29.07 below, the arbitrator will have the right to award or include in the award any relief available and appropriate under applicable law (as set forth in Section 29.06) and this Agreement. Any award shall be based on established law and shall not be made on broad principles of justice and equity. The award and decision of the arbitrator will be conclusive and binding upon all parties hereto and judgment upon the award may be entered in any court of competent jurisdiction. This provision will continue in full force and effect subsequent to and notwithstanding the expiration or termination of this Agreement.

29.04. Limitations on Proceedings.

• (a) Big O and Franchisee agree that arbitration will be conducted on an individual basis only. Neither party shall commence any arbitration with a third party against the other, or join with any third party in any arbitration involving Big O and Franchisee. Further, neither Big O nor Franchisee shall attempt to consolidate or otherwise combine in any manner an arbitration proceeding involving Big O and Franchisee with another arbitration of any kind, nor shall Big O or Franchisee attempt to certify a class or participate as a party in a class action against the other.
• (b) The foregoing notwithstanding, in the event Franchisee controls, is controlled by or is in active concert with another franchisee, distributor, or area developer of Big O, or there is a guarantor of some or all of the Franchisee's obligations to Big O, then the joinder of those parties to any arbitration between Big O and Franchisee shall be permitted, and in all events, the joinder of an owner, director, officer, manager, partner or other representative or agent of Big O or Franchisee shall be permitted.
• 29.05. Injunctive Relief. Notwithstanding anything to the contrary contained in this Article, Big O and Franchisee will each have the right in a proper case to obtain temporary or preliminary injunctive relief from a court of competent jurisdiction. Each party agrees that the other party may have such temporary or preliminary injunctive relief, without bond, but upon due notice, and with the sole remedy in the event of the entry of such injunctive relief being the dissolution of such injunctive relief, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of such injunction being expressly waived by each party). Any such action will be brought as provided in Section 29.06 below.
• 29.06. Governing Law/Consent to Jurisdiction/Waiver of Jury Trial. The United States Federal Arbitration Act shall govern all questions about the enforceability of Sections 29.02 and 29.03 and the confirmation of any arbitration awards pursuant to such procedures, and no arbitration issues are to be resolved pursuant to any other statutes, regulations or common law. Otherwise, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C.

Source: Item 23 — RECEIPTS (FDD pages 102–535)