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. Step 3. If appealed, the written grievance shall be presented by the Union and discussed with the Employer designated Step 3 representative. The Employer designated representative shall give the Union the Employer's answer in writing within. ten (10) calendar days after receipt of such Step 3 grievance. A grievance not resolved in Step 3 may be appealed to Step 4 within ten (10) calendar days following the Employer designated representative's final answer in Step 3. Any grievance not appealed in writing to Step 4 by the Union within ten (10) calendar days shall be considered waived. Step 4. A grievance unresolved in Step 3 and appealed in Step 4 shall be submitted to mediation, by either party's petitioning the Bureau of Mediation Services, with written notice to the other, for assistance in settling the grievance through mediation. If the mediation efforts fail to resolve the grievance to the mutual satisfaction of both parties, either Party may within ten (10) calendar days after the Director of the Bureau of Mediation Services certifies that further mediation efforts would serve no purpose, by written notice to the other party. request arbitration of the dispute. Step 5. The arbitration proceeding shall be conducted by an arbitrator to be selected by mutal agreement of the Employer and the Union within seven (7) calendar days after the request for such action. If the parties fail to mutually agree upon an arbitrator within the said seven (7) day period, either party may request the Director, Bureau of Mediation Services, to provide a panel of five (5) arbitrators. Both the Employer and the Union shall have the right to strike two names from the panel. The party requesting arbitration shall strike the first name, the other party shall then strike one (1) name and the process will be repeated and the remaining person shall be the arbitrator. Fees and expenses for the arbitrator's services and the proceeding shall be borne equally by the Employer and the Union. However, each party shall be responsible for compensating its own representatives and witnesses. The decision of the arbitrator shall be final and binding upon the parties and the employee(s) and the arbitrator shall be requested to issue his/her decision within thirty (30) calendar days after the conclusion of the testimony and argument. 6.5 ARBITRATOR'S AUTHORITY A. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this Agreement. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the Employer and the Union, and shall have no authority to make a decision on any other issue not so submitted. I B. The arbitrator shall be without power to make decisions contrary to, or inconsistent with, or modifying or varying in any way the application of laws, rules, or regulations having the force and effect of law. The arbitrator's decision shall be submitted in writing within thirty (30) days following close of the hearing or the submission of briefs by the parties, whichever be later, unless the parties agree to an extension. The decision shall be binding on both the Employer and the Union and shall be based solely on the arbitrator's interpretation or application of the express terms of this Agreement and to the facts of the grievance presented. C. The fees and expenses for the arbitrator's services and proceed- ings shall be borne equally by the Employer and the Union provided that each party shall be responsible for compensating the representatives and witnesses called by itself. If either party desires a verbatim record of the proceedings. it may cause such a record to be made, providing it pays for the record. If both parties desire a verbatim record of the proceedings, the cost shall be shared equally. -3- :