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their personal representatives, heirs, successors and assigns, and may not be changed orally but <br />only by written instrument signed by duly authorized representatives or officers of the parties <br />hereto. <br />12.3 Applicable Law <br />This Agreement and the rights and obligations of the parties hereunder shall be governed <br />by, and construed in accordance with, the laws of the State of Oregon. <br />12.4 Arbitration <br />12.4.1 If any dispute or difference which concerns a claim of $30,000 or less shall arise between <br />the Developer and Owner with respect to any matter or thing arising out of, or in any way <br />relating to this Agreement, each party, at such party's option, shall have the right to <br />require that such claim, controversy or dispute between the parties arising out of or <br />relating to the agreement be determined by arbitration in accordance with the then <br />effective azbitration rules of Arbitration Services of Portland, Inc., and any judgment upon <br />the award rendered pursuant to such azbitration may be entered in any court having <br />jurisdiction thereof. If litigation has been commenced in court for the purpose of <br />protecting any right of that pazty, the azbitration provision is not waived except when: <br />the party who is the defendant or respondent in such litigation shall be deemed to <br />have waived its option to azbitrate said dispute if such party files a general <br />appearance in the litigation prior to filing a claim in arbitration in the matter <br />specified above; and <br />~ <br />2, the plaintiff or petitioner in such litigation will be deemed to have waived its right <br />