A Dispute Resolution Policy is a formal framework that outlines the processes and procedures to be followed in resolving conflicts or disagreements between parties involved in a project. For the MAFHH HOME Peace & Serenity Village, a well-structured dispute resolution policy is essential to maintain harmony among investors, the management team, contractors, and other stakeholders. This policy ensures that disputes are addressed promptly and fairly, minimizing disruptions to the project and preserving relationships.

Key Components of the Dispute Resolution Policy:

1. Scope and Purpose:

• Scope: The policy applies to all disputes arising from the investment, management, or operations of the MAFHH HOME Peace & Serenity Village. This includes disputes between investors, between investors and the company, and between the company and contractors or other third parties.
• Purpose: The purpose of this policy is to provide a clear, fair, and efficient process for resolving disputes, ensuring that all parties’ rights and interests are protected.

2. Types of Disputes Covered:

• Financial Disputes: Issues related to profit distribution, payment schedules, or financial obligations.
• Operational Disputes: Conflicts over the management or use of facilities, including access to amenities, scheduling, or maintenance concerns.
• Contractual Disputes: Disagreements over the interpretation or execution of contracts, including the investment agreement or agreements with service providers.
• Regulatory and Compliance Disputes: Conflicts arising from regulatory requirements or compliance issues related to the project.

3. Dispute Resolution Process:
4. Initial Resolution (Informal Negotiation):

• Direct Discussion: The parties involved in the dispute should first attempt to resolve the issue through direct, informal discussions. This step encourages open communication and seeks a mutually agreeable solution without escalating the conflict.
• Timeframe: Parties should make a genuine effort to resolve the dispute within 14 days of the issue arising.

1. Mediation:

• Neutral Mediator: If the dispute cannot be resolved through informal negotiation, the parties may agree to engage a neutral mediator. The mediator is an independent third party who facilitates discussion and helps the parties reach a voluntary, negotiated resolution.
• Selection of Mediator: The parties can mutually agree on a mediator, or, if they cannot agree, the mediator can be appointed by an independent organization, such as a mediation service provider.
• Timeframe: Mediation should be initiated within 30 days of the failure to resolve the dispute through negotiation and concluded within 60 days.

1. Arbitration:

• Binding Arbitration: If mediation fails, the dispute will be submitted to binding arbitration. An arbitrator, selected by the parties or appointed by a recognized arbitration institution, will hear the case and make a final, legally binding decision.
• Arbitration Rules: The arbitration process will follow the rules of a recognized arbitration body, such as the Chartered Institute of Arbitrators (CIArb) or the International Chamber of Commerce (ICC).
• Location: The arbitration will be conducted in a mutually agreed location, or as specified by the arbitration body.
• Timeframe: Arbitration should be completed within 6 months from the date it is initiated.

1. Litigation (as a Last Resort):

• Court Proceedings: If arbitration is not successful or if the parties prefer, the dispute may be taken to court as a last resort. This step is usually avoided due to the time, cost, and potential damage to relationships.
• Jurisdiction: Any litigation will be conducted in the courts of Scotland, which have jurisdiction over the project area.

4. Confidentiality:

• Confidential Process: All discussions, negotiations, and proceedings related to dispute resolution (mediation, arbitration, etc.) are to remain confidential. The parties agree not to disclose any information related to the dispute or its resolution to any third parties, except as required by law.

5. Costs:

• Cost Sharing: The costs of mediation and arbitration are typically shared equally by the parties unless otherwise agreed. In the case of litigation, the court may decide on cost allocation.
• Legal Fees: Each party is responsible for their own legal fees unless otherwise decided by the mediator, arbitrator, or court.

6. Implementation of Resolution:

• Binding Decision: The outcome of arbitration (or litigation, if pursued) is binding and enforceable by law. The parties agree to comply with the resolution within the timeframe specified in the decision.
• Follow-up: A follow-up process may be established to ensure that the resolution is implemented effectively and that no further disputes arise from the same issue.

7. Review and Amendment:

• Policy Review: This Dispute Resolution Policy will be reviewed annually or as needed to ensure its effectiveness and relevance to the project’s needs.
• Amendments: Any amendments to the policy must be agreed upon by the majority of shareholders and the company management.

Benefits of the Dispute Resolution Policy:

• Fairness: Ensures that all parties have a voice and that disputes are resolved in a manner that is fair and just.
• Efficiency: Provides a clear process for resolving disputes quickly, minimizing disruption to the project.
• Cost-Effectiveness: Encourages resolution through negotiation and mediation, which are less costly than litigation.
• Relationship Preservation: Focuses on resolving disputes amicably to maintain positive relationships among investors, the company, and other stakeholders.

This Dispute Resolution Policy is designed to provide a comprehensive, fair, and efficient framework for addressing any conflicts that may arise during the MAFHH HOME Peace & Serenity Village project, ensuring the project’s smooth progression and the protection of all parties’ interests.