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* UNCITRAL ARBITRATION RULES (1976) *

* UNCITRAL Arbitration Rules (1976) (Adopted by the General Assembly on

December 15, 1976) *

Article 1 - Scope of application

Article 3 - Notice of arbitration

Article 5 - Number of arbitrators

* Articles (6 to 8) - Appointment of arbitrators *

Article 7

Article 9

Article 11

Article 13 - Replacement of an arbitrator

Article 15 - General provisions

Article 17 - Language

Article 19 - Statement of defence

Article 21 - Pleas as to the jurisdiction of the arbitral tribunal

Article 23 - Periods of time

* Articles (24 and 25) - Evidence and hearings *

Article 25

Article 27 - Experts

Article 29 - Closure of hearings

Article 31 - Decisions

Article 33 - Applicable law, amiable compositeur

Article 35 - Interpretation of the award

Article 37 - Additional award

* Articles (38 to 40) - Cost *

Article 39(as revised in 2010)Section I.

Article 41 - Deposit of costs

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* UNCITRAL Arbitration Rules (1976) *

*^ © United Nations (UN)*

* SECTION 1 - Introductory Rules *

Article 2 - Notice, calculation periods of time

Article 4 - Representation and assistance

* Article 5 - Number of arbitrators *

* Article 6 *

Article 8

* Article 9 *

Article 11

Article 13 - Replacement of an arbitrator

SECTION III - ARBITRAL PROCEEDINGS

Article 16 - Place of arbitration

Article 18 - Statement of claim

Article 20 - Amendments to the claim or defence

Article 22 - Further written statements

Articles (24 and 25) - Evidence and hearings

Article 25

Article 27 - Experts

Article 29 - Closure of hearings

SECTION IV - THE AWARD

Article 32 - Form and effect of the award

Article 34

Article 36 - Correction of the award

Articles (38 to 40) - Cost

Article 39

Article 41 - Deposit of costs

Document Information

* UNCITRAL Arbitration Rules (1976) (Adopted by the General Assembly on

December 15, 1976) *

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*/ [Preamble]/ *

The General Assembly,

2

Recognising the value of arbitration as a method of settling disputes

arising in the context of international commercial relations,

3

Being convinced that the establishment of rules for ad hoc arbitrationthat are acceptable in countries with different legal, social and

economic systems would significantly contribute to the development of

harmonious international economic relations,

4

Bearing in mind that the Arbitration Rules of the United Nations

Commission on International Trade Law have been prepared after extensive

consultation with arbitral institutions and centres of international

commercial arbitration,

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Noting that the Arbitration Rules were adopted by the United Nations

Commission on International Trade Law at its ninth session after due

deliberation,

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* 1.* Recommends the use of the Arbitration Rules of the United Nations

Commission on International Trade Law in the settlement of disputes

arising in the context of international commercial relations,

particularly by reference to the Arbitration Rules in commercial contracts;

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* 2.* Requests the Secretary-General to arrange for the widest possible

distribution of the Arbitration Rules.

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* SECTION 1 - Introductory Rules *

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* Article 1 - Scope of application *Article

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* 11..* Where the parties to a contract have agreed in writing that disputes between them inrespect of a defined legal relationship, whether contractual ornot,disputes in relation to that contract shall be referred to arbitration

under the UNCITRAL Arbitration Rules, then such disputes shall be

settled in accordance with these Rules subject to such modification as thethe parties may agree. in writing.2. The parties to an arbitration agreement concluded after 15August 2010 shall be presumed to have referred to the Rules ineffect on the date of commencement of the arbitration, unless theparties have agreed to apply a particular version of the Rules.That presumption does not apply where the arbitration agreementhas been concluded by accepting after 15 August 2010 an offermade before that date.3.

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* 2.* These Rules shall govern the arbitration except that where any of

these Rules is in conflict with a provision of the law applicable to the

arbitration from which the parties cannot derogate, that provision shall

prevail.* A model arbitration clause for contracts can be found in the annex to theRules.

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* Article 2 - Notice and, calculation of periods of time *Article 21. A

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* 1.* For the purposes of these Rules, any notice, including a

notification, communication or proposal, may be transmitted by any means of communicationthat provides or allows for a record of its transmission.2. If an address has been designated by a party specifically forthis purpose or authorized by the arbitral tribunal, any noticeshall be delivered to that party at that address, and if so deliveredshall beis deemed to have been received. Delivery by electronicmeans such as facsimile or email may only be made to anaddress so designated or authorized.3. In the absence of such designation or authorization, anotice is:(a) received if it is physically delivered to the addressee; or(b) deemed to have been received if it is delivered at theplace of business,his habitual residence, place of business or mailing address, or, ifaddressnone of the addressee.Pre-release (12 July 2010)24. If, se can be found after making reasonable efforts, delivery cannot be effectedinquiry, then at thein accordance with paragraphs 2 or 3, a notice is deemed to havebeen received if it is sent to the addressee’saddressee's last-known place ofbusiness, habitual residence or mailing address by registeredplace of business. Notice shall beletter or any other means that provides a record of delivery or ofattempted delivery.

5. A notice shall be deemed to have been received on the day it is so delivered.it is delivered in accordance with paragraphs

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* 2, 3 or 4, orattempted to be delivered in accordance with paragraph 4. Anotice transmitted by electronic means is deemed to have beenreceived on the day it is sent, except that a notice of arbitrationso transmitted is only deemed to have been received on the daywhen it reaches the addressee’s electronic address.6.2.* For the purposes of calculating a period of time under theseRules, such period shall begin to run on the day following the day whenday when a notice , notification, communication or proposal is received. If the

last day of such period is an official holiday or a non-business day at

the residence or place of business of the addressee, the period is

extended until the first business day which follows. Official holidays

or non-business days occurring during the running of the period of time

are included in calculating the period.

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* Article 3 - Notice of arbitration *Article 3

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* 1.* The party or parties initiating recourse to arbitration (hereinafter called

the “claimant”)"claimant") shall communicategive to the other party or parties (hereinafter called the “respondent”)

"respondent") a notice of arbitration.

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* 2.* Arbitral proceedings shall be deemed to commence on the date on

which the notice of arbitration is received by the respondent.

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* 3.* The notice of arbitration shall include the following:

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* (a)* A demand that the dispute be referred to arbitration;

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* (b)* The names and contact detailsaddresses of the parties;

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* (c) Identification of* A reference to the arbitration clause or the separate arbitration

agreement that is invoked;

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* (d) Identification of any* A reference to the contract or other legalinstrument out of or in relation to which the

dispute arises or, in the absence of such contract or;instrument, a brief description of the relevantrelationship;

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* (e) A brief description* The general nature of the claim and an indication of the amount

involved, if any;

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* (f)* The relief or remedy sought;

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* (g)* A proposal as to the number of arbitrators, languageand place of arbitration, (ie. one or three), if the parties have notparties have not previously agreed thereon.

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* 4.* The notice of arbitration may also include:Pre-release (12 July 2010)3

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* (a) A proposal* The proposals for the designationappointments of a sole arbitrator and an

appointing authority referred to in article 6, paragraph 1;

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* (b) A proposal for the appointment of a sole arbitratorreferred to in article 8, paragraph 1;(c) Notification* The notification of the appointment of an arbitrator referred toin article 7;

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* (c)* The statement of claim referred to in articles 9 or 10. 18.5. The constitution of the arbitral tribunal shall not behindered by any controversy with respect to the sufficiency ofthe notice of arbitration, which shall be finally resolved by thearbitral tribunal.Response to the notice of arbitration

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* Article 41. Within 30 days of the receipt of the notice of arbitration,the respondent shall communicate to the claimant a response tothe notice of arbitration, which shall include:(a) The name and contact details of each respondent;(b) A response to the information set forth in the noticeof arbitration, pursuant to article 3, paragraphs 3 (c)to (g).2. The response to the notice of arbitration may also include:(a) Any plea that an arbitral tribunal to be constitutedunder these Rules lacks jurisdiction;(b) A proposal for the designation of an appointingauthority referred to in article 6, paragraph 1;(c) A proposal for the appointment of a sole arbitratorreferred to in article 8, paragraph 1;(d) Notification of the appointment of an arbitratorreferred to in articles 9 or 10;(e) A brief description of counterclaims or claims for thepurpose of a set-off, if any, including where relevant,an indication of the amounts involved, and the reliefor remedy sought;(f) A notice of arbitration in accordance with article 3 incase the respondent formulates a claim against a partyto the arbitration agreement other than the claimant.3. The constitution of the arbitral tribunal shall not behindered by any controversy with respect to the respondent’sfailure to communicate a response to the notice of arbitration, oran incomplete or late response to the notice of arbitration, whichshall be finally resolved by the arbitral tribunal. - Representation and assistance *Article 5Each party

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The parties may be represented or assisted by persons of their choice.chosen by it. The names and addresses of such persons must be communicated to all parties and to the arbitral tribunal. Suchin writingPre-release (12 July 2010)4to the other party; such communication must specify whether the

appointment is being made for purposes of representation or assistance. Where a

person is to act as a representative of a party, the arbitraltribunal, on its own initiative or at the request of any party, mayat any time require proof of authority granted to therepresentative in such a form as the arbitral tribunal maydetermine.Designating and appointing authorities

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* SECTION II - COMPOSITION OF THE ARBITRAL TRIBUNAL *

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* Article 65 - Number of arbitrators *1. Unless

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If the parties have alreadynot previously agreed on the choicenumber of anarbitratorsappointing authority, a party may at any time propose the nameor names of(ie. one or more institutions or persons, includingthree), and if within fifteen days after the receipt by theSecretary-Generalrespondent of the Permanent Court of Arbitration at TheHague (hereinafter callednotice of arbitration the “PCA”), one of whom would serveas appointing authority.2. If all parties have not agreed on the choice of an appointingthatauthority within 30 days afterthere shall be only one arbitrator, three arbitrators shall be appointed.

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* Articles (6 to 8) - Appointment of arbitrators *

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* Article 6 *

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* 1.* If a proposal made in accordancewith paragraph 1 has been received by all other parties, anysole arbitrator is to be appointed, either party may request the Secretary-General of the PCA to designateproposeto the appointing authority.other:3. Where these Rules provide for a period of time withinwhich a party must refer a matter to an appointing authority and

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* (a)* The names of one or more persons, one of whom should serve as the

sole arbitrator; and

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* (b)* If no appointing authority has been agreed on or designated,upon by the parties,period is suspended from the date on which a party initiates theprocedure for agreeing on or designating an the name or names of one or more institutions or persons, one of whom

would serve as appointing authority.until the date of such agreement or designation.4. Except as referred to in article 41, paragraph (4), if theappointing authority refuses to act, or if it fails to appoint anarbitrator

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* 2.* If within 30thirty days after it receivesreceipt by a party’s request to do of a proposal madeso, fails to act within any other period provided by these Rules,or fails to decidein accordance with paragraph 1 the parties have not reached agreement on

the choice of a challenge to ansole arbitrator within a, the sole arbitrator shall be appointedreasonable time after receiving a party’s request to do so, anyparty may request the Secretary-General of the PCA to designatea substituteby the appointing authority.5. In exercising their functions under these Rules, the agreed upon by the parties. If no appointing

authority and the Secretary-General of the PCA may

require from any party and the arbitrators the information theydeem necessary and they shall give has been agreed upon by the parties and, where, or if the appointingappropriate,authority agreed upon refuses to act or fails to appoint the arbitrators,

within sixty days of the receipt of a party's request therefor, either

party may request the Secretary-General of the Permanent Court of

Arbitration at The Hague to designate an opportunity to present their viewsappointing authority.

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* 3.* The appointing authority shall, at the request of one of the

parties, appoint the sole arbitrator as promptly as possible. In making

the appointment the appointing authority shall use the following

list-procedure, unless both parties agree that the list-procedure should

not be used or unless the appointing authority determines in any manner they considerits

discretion that the use of the list-procedure is not appropriate. All such for thecommunicationscase:

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* (a)* At the request of one of the parties the appointing authority

shall communicate to both parties an identical list containing at least

three names;

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* (b)* Within fifteen days after the receipt of this list, each party

may return the list to the appointing authority after having deleted the

name or names to which he objects and numbered the remaining names on

the list in the order of his preference;

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* (c)* After the expiration of the above period of time the appointing

authority shall appoint the sole arbitrator from among the names

approved on the lists returned to it and in accordance with the order of

preference indicated by the parties;

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* (d)* If for any reason the appointment cannot be made according to

this procedure, the appointing authority and themay exercise its discretion inSecretary-General ofappointing the PCA shall also be provided bysole arbitrator.

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* 4.* In making thesender to all other parties.6. When appointment, the appointing authority is requested to appoint anshall havearbitrator pursuant to articles 8, 9, 10 or 14, the party making therequest shall send to the appointing authority copies of the noticeof arbitration and, if it exists, any response to the notice ofarbitration.7. The appointing authority shall have regard to such considerations as are likely to secure the appointment of anPre-release (12 July 2010)5an independent and impartial arbitrator and shall take into account aswell the advisability of appointing an arbitrator of a nationality otherthan the nationalities of the parties.Section II. Composition of the arbitral tribunalNumber of arbitrators

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* Article 7 *

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* 1. If the parties have not previously agreed on the number ofarbitrators, and if within 30 days after the receipt by therespondent of the notice of arbitration the parties have notagreed that there shall be only one arbitrator, three arbitratorsshall be appointed.2. Notwithstanding paragraph 1, if no other parties haveresponded to a party’s proposal to appoint a sole arbitratorwithin the time limit provided for in paragraph 1 and the partyor parties concerned have failed to appoint a second arbitrator inaccordance with articles 9 or 10, the appointing authority may,at the request of a party, appoint a sole arbitrator pursuant to theprocedure provided for in article 8, paragraph 2 if it determinesthat, in view of the circumstances of the case, this is moreappropriate.Appointment of arbitrators (articles 8 to 10)Article 81. If the parties have agreed that a sole arbitrator is to beappointed and if within 30 days after receipt by all other partiesof a proposal for the appointment of a sole arbitrator the partieshave not reached agreement thereon, a sole arbitrator shall, at therequest of a party, be appointed by the appointing authority.2. The appointing authority shall appoint the sole arbitrator aspromptly as possible. In making the appointment, the appointingauthority shall use the following list-procedure, unless theparties agree that the list-procedure should not be used or unlessthe appointing authority determines in its discretion that the useof the list-procedure is not appropriate for the case:(a) The appointing authority shall communicate to eachof the parties an identical list containing at least threenames;(b) Within 15 days after the receipt of this list, each partymay return the list to the appointing authority afterhaving deleted the name or names to which it objectsand numbered the remaining names on the list in theorder of its preference;(c) After the expiration of the above period of time theappointing authority shall appoint the sole arbitratorfrom among the names approved on the lists returnedto it and in accordance with the order of preferenceindicated by the parties;Pre-release (12 July 2010)6(d) If for any reason the appointment cannot be madeaccording to this procedure, the appointing authoritymay exercise its discretion in appointing the solearbitrator.Article 91.* If three arbitrators are to be appointed, each party shall appointappoint one arbitrator. The two arbitrators thus appointed shall choose the

third arbitrator who will act as the presiding arbitrator of the tribunal.of the arbitral tribunal.

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* 2.* If within 30thirty days after the receipt of a party’sparty's notificationof the appointment of an arbitrator the other party has not notified the

first party of the arbitrator ithe has appointed, the appointed:

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* (a)* The first party may request the appointing authority previouslyparty designated by the parties to appoint the second arbitrator; or

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* (b)* If no such authority has been previously designated by the

parties, or if the appointing authority previously designated refuses to

act or fails to appoint the arbitrator within thirty days after receipt

of a party's request therefor, the first party may request the

Secretary-General of the Permanent Court of Arbitration at the Hague to

designate the appointing authority. The first party may then request the

appointing authority so designated to appoint the second arbitrator. Ineither case, the appointing authority may exercise its discretion in

appointing the arbitrator.

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* 3.* If within 30thirty days after the appointment of the secondarbitrator the two arbitrators have not agreed on the choice of thepresiding arbitrator, the presiding arbitrator shall be appointed by anby the appointing authority in the same way as a sole arbitrator would be

appointed under article 6.

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* Article 8. *Article 10

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* 1. For the purposes of article 9, paragraph 1, where threearbitrators are to be appointed and there are multiple parties asclaimant or as respondent, unless the parties have agreed toanother method of appointment of arbitrators, the multipleparties jointly, whether as claimant or as respondent, shallappoint* When an arbitrator.2. If the parties have agreed that the arbitral tribunal is to becomposed of a number of arbitrators other than one or three, thearbitrators shall be appointed according to the method agreedupon by the parties.3. In the event of any failure to constitute the arbitral tribunal

under these Rules, the appointing authority shall, at the requestis requested to appoint an arbitratorof any party, constitutepursuant to article 6 or article 7, the arbitral tribunalparty which makes the request

shall send to the appointing authority a copy of the notice of

arbitration, a copy of the contract out of or in relation to which the

dispute has arisen and, in doing so, a copy of the arbitration agreement if it is not

contained in the contract. The appointing authority may require fromrevoke any either party such information as it deems necessary to fulfil its function.

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* 2.* Where the names of one or more persons are proposed for

appointment already made and appoint or reappointeach of the as arbitrators and designate one of them as the presiding, their full names, addresses andarbitrator.Disclosures by and challengenationalities shall be indicated, together with a description of their

qualifications.

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* Articles (9 to 12) - Challenges of arbitrators** (articles 11 to 13) *

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* Article 119 *When a person is approached in

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A prospective arbitrator shall disclose to those who approach him in

connection with his or herpossible appointment as an arbitrator, he or she shall discloseany circumstances likely to

give rise to justifiable doubts as to his or her impartiality or independence.

An arbitrator, from thetime of hisonce appointed or her appointment and throughout the arbitralproceedings,chosen, shall without delay disclose any such

circumstances to the parties and the other arbitrators unless they have already been informed by

him or her of these circumstances.** Model statements of independence pursuant to article 11 can be found inthe annex to the Rules.Pre-release (12 July 2010)7

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* Article 1210 *

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* 1.* Any arbitrator may be challenged if circumstances exist that give

rise to justifiable doubts as to the arbitrator’sarbitrator's impartiality or independence.independence.

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* 2.* A party may challenge the arbitrator appointed by it him only forfor reasons of which ithe becomes aware after the appointment has been made.3.

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* Article 11 *

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* 1.* A party who intends to challenge an arbitrator shall send notice

of his challenge within fifteen days after the appointment of the

challenged arbitrator has been notified to the challenging party or

within fifteen days after the circumstances mentioned in articles 9 and

10 became known to that party.

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* 2.* The challenge shall be notified to the other party, to the

arbitrator who is challenged and to the other members of the arbitral

tribunal. The notification shall be in writing and shall state the

reasons for the challenge.

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* 3.* When an arbitrator has been challenged by one party, the other

party may agree to the challenge. In both cases the procedure provided

in article 6 or 7 shall be used in full for the appointment of the

substitute arbitrator, even if during the process of appointing the

challenged arbitrator a party had failed to exercise his right to

appoint or to participate in the appointment.

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* Article 12 *

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* 1.* If the other party does not agree to the challenge and the

challenged arbitrator does not withdraw, the decision on the challenge

will be made:

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* (a)* When the initial appointment was made by an appointing authority,

by that authority;

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* (b)* When the initial appointment was not made by an appointing

authority, but an appointing authority has been previously designated,

by that authority;

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* (c)* In all other cases, by the appointing authority to be designated

in accordance with the procedure for designating an appointing authority

provided for in article 6.

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* 2.* If the appointing authority sustains the challenge, a substitute

arbitrator shall be appointed or chosen pursuant to the procedure

applicable to the appointment or choice of an arbitrator as provided in

articles 6 to 9 except that, when this procedure would call for the

designation of an appointing authority, the appointment of the

arbitrator shall be made by the appointing authority which decided on

the challenge.

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* Article 13 - Replacement of an arbitrator *

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* 1.* In the event of death or resignation of an arbitrator during the

course of the arbitral proceedings, a substitute arbitrator shall be

appointed or chosen pursuant to the procedure provided for in articles 6

to 9 that was applicable to the appointment or choice of the arbitrator

being replaced.

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* 2.* In the event that an arbitrator fails to act or in the event ofthe de jure or de facto impossibility of his or her performing his functions,or her functions, the procedure in respect of the challenge of anarbitrator as provided in article 13 shall apply.Article 131. A party that intends to challenge an arbitrator shall sendnotice of its challenge within 15 days after it has been notified ofthe appointment of the challenged arbitrator, or within 15 daysafter the circumstances mentioned in articles 11 and 12 becamereplacement of anknown to that party.2. The notice of challenge shall be communicated to all otherparties, to the arbitrator who is challenged and to the otherarbitrators. The notice of challenge shall state the reasons for thechallenge.3. When an arbitrator has been challenged by a party, allparties may agree to the challenge. The arbitrator may also, after

the challenge, withdraw from his or her office. In neither casedoes this imply acceptance of the validity of the grounds for thechallenge.4. If, within 15 days from the date of the notice of challenge,all parties do not agree to the challenge or the challengedarbitrator does not withdraw, the party making the challenge mayelect to pursue it. In that case, within 30 days from the date ofthe notice of challenge, it shall seek a decision on the challengeby the appointing authority.Replacement of an arbitratorArticle 141. Subject to paragraph (2), in any event where an arbitratorhas to be replaced during the course of the arbitral proceedings,a substitute arbitrator shall be appointed or chosen pursuant tothe procedureas provided for in the preceding articles 8 to 11 that was applicableto the appointment or choice of the arbitrator being replaced.This procedure shall apply even if during the process of.appointing the arbitrator to be replaced, a party had failed toexercise its right to appoint or to participate in the appointment.2. If, at the request of a party, the appointing authoritydetermines that, in view of the exceptional circumstances of thecase, it would be justified for a party to be deprived of its rightto appoint a substitute arbitrator, the appointing authority may,after giving an opportunity to the parties and the remainingarbitrators to express their views: (a) appoint the substitutePre-release (12 July 2010)8arbitrator; or (b) after the closure of the hearings, authorize theother arbitrators to proceed with the arbitration and make anydecision or award.

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* Article 14 - Repetition of hearings in the event of the replacement of anarbitratorArticle 15If an arbitrator *

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If under articles 11 to 13 the sole or presiding arbitrator is replaced, the proceedings

any hearings held previously shall resume atthe stage where thebe repeated; if any other arbitrator who was

is replaced ceased to, such prior hearings may be repeated at the discretion ofperform his or her functions, unless the arbitral tribunal decides.otherwise.Exclusion of liability

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* SECTION III - ARBITRAL PROCEEDINGS *

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* Article 16Save for intentional wrongdoing, the parties waive, to thefullest extent permitted under the applicable law, any claimagainst the arbitrators, the appointing authority and any personappointed by the arbitral tribunal based on any act or omissionin connection with the arbitration.Section III. Arbitral proceedings15 - General provisions *Article 17

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* 1.* Subject to these Rules, the arbitral tribunal may conduct thethe arbitration in such manner as it considers appropriate, provided theprovided that the parties are treated with equality and that at any stage of theappropriate stage of the proceedings each party is given areasonable full opportunity of presenting itshis case. The arbitraltribunal, in exercising its discretion, shall conduct theproceedings

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* 2.* If either party so as to avoid unnecessary delay and expense and toprovide a fair and efficient process for resolving the parties’dispute.2. As soon as practicable after its constitution and afterinviting the parties to express their views, the arbitral tribunalshall establish the provisional timetable of the arbitration. Thearbitral tribunal may, at any time, after inviting the parties toexpress their views, extend or abridge any period of timeprescribed under these Rules or agreed by the parties.3. If at an appropriate stage of the proceedings any party sorequests, at any stage of the proceedings, the

arbitral tribunal shall hold hearings for the presentation of evidence

by witnesses, including expert witnesses, or for oral argument. In the

absence of such a request, the arbitral tribunal shall decide whether to

hold such hearings or whether the proceedings shall be conducted on the

basis of documents and other materials.4.

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* 3.* All communicationsdocuments or information supplied to the arbitral tribunal by

one party shall at the same time be communicated by that party to theshall be communicated by that party to all other parties. Suchcommunications shall be made at the same time, except asPre-release (12 July 2010)9otherwise permitted by the arbitral tribunal if it may do so underapplicable law.5. The arbitral tribunal may, at the request of any party, allowone or more third persons to be joined in the arbitration as aparty provided such person is a party to the arbitrationagreement, unless the arbitral tribunal finds, after giving allparties, including the person or persons to be joined, theopportunity to be heard, that joinder should not be permittedbecause of prejudice to any of those parties. The arbitral tribunalmay make a single award or several awards in respect of allparties so involved in the arbitration.other party.

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* Article 16 - Place of arbitration *Article 18

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* 1. If * Unless the parties have not previously agreed upon the place ofwhere thearbitration, the is to be held, such place of arbitration shall be determined by thearbitral tribunal, having regard to the circumstances of the case.arbitration.

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* 2.* The award shall be deemed to have been made at arbitral tribunal may determine the place locale of the arbitration.2.within the country agreed by the parties. It may hear witnesses and hold

meetings for consultation among its members at any place it deems

appropriate, having regard to the circumstances of the arbitration.

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* 3.* The arbitral tribunal may meet at any locationplace it considersdeems appropriateappropriate for deliberations. Unless otherwise agreed by the inspection of goods, other property or documents. The parties, the arbitral tribunal may also meet at any location itconsiders appropriate for any other purpose, including hearings.shall be given sufficient notice to enable them to be present at such

inspection.

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* 4.* The award shall be made at the place of arbitration.

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* Article 17 - Language *Article 19

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* 1.* Subject to an agreement by the parties, the arbitral tribunalshall, promptly after its appointment, determine the language orlanguages to be used in the proceedings. This determination shall applyapply to the statement of claim, the statement of defence, and any further

written statements and, if oral hearings take place, to the language or

languages to be used in such hearings.2. The arbitral tribunal may order that any documentsannexed to

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* Article 18 - Statement of claim *

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* 1.* Unless the statement of claim or statement of defence, andany supplementary documents or exhibits submittedwas contained in the notice ofcoursearbitration, within a period of the proceedings, delivered in their original language,shalltime to be accompanied by a translation into the language orlanguages agreed upon by the parties or determined by the arbitral tribunal.Statement of claimArticle 201. The tribunal, the claimant shall communicate itshis statement of claim inwriting to the respondent and to each of the arbitrators within a. A copy of theperiodcontract, and of time to be determined by the arbitral tribunal. Theclaimant may elect to treat its notice of arbitration referred toagreement if not contained inarticle 3 as a statement of claim, provided that the notice ofarbitration also complies with the requirements of paragraphs 2to 4 of this article.2.contract, shall be annexed thereto.

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* 2.* The statement of claim shall include the following particulars:Pre-release (12 July 2010)10

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* (a)* The names and contact detailsaddresses of the parties;

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* (b)* A statement of the facts supporting the claim;

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* (c)* The points at issue;

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* (d)* The relief or remedy sought;sought.(e)

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The legal grounds or arguments supporting the claim.3. A copy of any contract or other legal instrument out of orin relationclaimant may annex to which the dispute arises and of the arbitrationagreement shall be annexed to thehis statement of claim.4. The statement of claim should, as far as possible, beaccompanied by all documents and other evidence relied uponhe deemsby the claimant,relevant or contain referencesmay add a reference to them. documents or other evidence hewill submit.

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* Article 19 - Statement of defence *Article 21

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* 1. The * Within a period of time to be determined by the arbitral tribunal,

the respondent shall communicate itshis statement of defence in writing to

the claimant and to each of the arbitrators within a.period of time to be determined by the arbitral tribunal. Therespondent may elect to treat its response to the notice ofarbitration referred to in article 4 as a statement of defence,provided that the response to the notice of arbitration alsocomplies with the requirements of paragraph 2 of this article.2.

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* 2.* The statement of defence shall reply to the particulars (b), (c)to (e)and (d) of the statement of claim (article 20, paragraph18, para. 2). The respondentmay annex to his statement of the documents on which he relies for his

defence should, as far as possible, be accompaniedby all or may add a reference to the documents andor other evidence relied upon by the

respondent, or contain references to them.will submit.

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* 3.* In itshis statement of defence, or at a later stage in the arbitralproceedings if the arbitral tribunal decides that the delay wasjustified under the circumstances, the respondent may make acounterclaim counter-claim arising out of the same contract or rely on a claim for the purpose of a set-offprovided that the arbitral tribunal has jurisdiction over it.arising out of the same contract for the purpose of a set-off.

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* 4.* The provisions of article 20, paragraphs 2 to 418, paragraph 2, shall apply to a counterclaim,

counter-claim and a claim under article 4, paragraph (2) (f) and aclaim relied on for the purpose of a set-off.

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* Article 20 - Amendments to the claim or defence *Article 22

103

During the course of the arbitral proceedings, a either party may amend or

supplement its his claim or defence, including acounterclaim or a claim for the purpose of a set-off, unless the arbitral tribunal considers

it inappropriate to allow such amendment or supplement having regard to the delay in

making it or prejudice to the other parties party or any other circumstances.However, a claim or defence, including a counterclaim or aclaim for the purpose of a set-off, may not be amended orsupplemented in such a manner that the amended orsupplemented claim or defence falls outside the jurisdiction ofscope of the arbitration clause or separatethe arbitral tribunal.Pre-release (12 July 2010)11arbitration agreement.

104

* Article 21 - Pleas as to the jurisdiction of the arbitral tribunal *Article 23

105

* 1.* The arbitral tribunal shall have the power to rule on its ownobjections

that it has no jurisdiction, including any objections with respect to

the existence or validity of the arbitration agreement. For thatclause or of the separatepurpose,arbitration agreement.

106

* 2.* The arbitral tribunal shall have the power to determine the

existence or the validity of the contract of which an arbitration clause that

forms a part of a contract shall. For the purposes of article 21, an arbitration clausewhich forms part of a contract and which provides for arbitration under

these Rules shall be treated as an agreement independent of the other

terms of the contract. A decision by the arbitral tribunal that the

contract is null and void shall not entail automaticallyipso jure the invalidity of the arbitrationthe arbitration clause.2.

107

* 3.* A plea that the arbitral tribunal does not have jurisdiction shallshall be raised not later than in the statement of defence or, with respect to a counterclaim or a claim for the purpose of a set-off,a counter-claim, in the reply to the counterclaim or to the claim for the purpose ofcounter-claim.a set-off. A party is not precluded from raising such a plea by thefact that it has appointed, or participated in the appointment of,an arbitrator. A plea that

108

* 4.* In general, the arbitral tribunal is exceeding thescope of its authority shall be raised as soon as the matteralleged to be beyond the scope of its authority is raised duringthe arbitral proceedings. The arbitral tribunal may, in either case,admit a later plea if it considers the delay justified.3. The arbitral tribunal may should rule on a plea referred to inconcerningparagraph 2 either its jurisdiction as a preliminary question or in an award on. However, the arbitralthe merits. The arbitral tribunal may continueproceed with the arbitralproceedingsarbitration and make an award, notwithstanding any pendingchallenge to its jurisdiction beforerule on such a court.plea intheir final award.

109

* Article 22 - Further written statements *Article 24

110

The arbitral tribunal shall decide which further written statements, in

addition to the statement of claim and the statement of defence, shall

be required from the parties or may be presented by them and shall fix

the periods of time for communicating such statements.

111

* Article 23 - Periods of time *Article 25

112

The periods of time fixed by the arbitral tribunal for the communication

of written statements (including the statement of claim and statementsclaim and statement of defence) should not exceed 45forty-five days. However, the arbitralHowever, the arbitral tribunal may extend the time -limits if it concludes that an extension is justified.Interim measuresPre-release (12 July 2010)12Article 261. The arbitral tribunal may, at the request of a party, grantinterim measures.2. An interim measure is any temporary measure by which, atany time prior to the issuance of the award by which the disputeis finally decided, the arbitral tribunal orders a party, forexample and without limitation, to:(a) Maintain or restore the status quo pendingdetermination of the dispute;(b) Take action that would prevent, or refrain from takingaction that is likely to cause, (i) current or imminentharm or (ii) prejudice to the arbitral process itself;(c) Provide a means of preserving assets out of which asubsequent award may be satisfied; or(d) Preserve evidence that may be relevant and materialto the resolution of the dispute.3. The party requesting an interim measure under paragraphs2 (a) to (c) shall satisfy the arbitral tribunal that:(a) Harm not adequately reparable by an award ofdamages is likely to result if the measure is notordered,justified.

113

* Articles (24 and such harm substantially outweighs theharm that is likely to result to the party against whomthe measure is directed if the measure is granted; and(b) There is a reasonable possibility that the requestingparty will succeed on the merits of the claim. Thedetermination on this possibility shall not affect thediscretion of the arbitral tribunal in making anysubsequent determination.4. With regard to a request for an interim measure underparagraph 2 (d), the requirements in paragraphs 3 (a) and (b)shall apply only to the extent the arbitral tribunal considersappropriate.5. The arbitral tribunal may modify, suspend or terminate aninterim measure it has granted, upon application of any party or,in exceptional circumstances and upon prior notice to the parties,on the arbitral tribunal’s own initiative.6. The arbitral tribunal may require the party requesting aninterim measure to provide appropriate security in connectionwith the measure.7. The arbitral tribunal may require any party promptly todisclose any material change in the circumstances on the basis ofwhich the interim measure was requested or granted.8. The party requesting an interim measure may be liable forany costs and damages caused by the measure to any party if thearbitral tribunal later determines that, in the circumstances thenprevailing, the measure should not have been granted. Thearbitral tribunal may award such costs and damages at any pointduring the proceedings.Pre-release (12 July 2010)139. A request for interim measures addressed by any party to ajudicial authority shall not be deemed incompatible with theagreement to arbitrate, or as a waiver of that agreement.25) - Evidence and hearings *

114

* Article 2724 *

115

* 1.* Each party shall have the burden of proving the facts relied on toon to support itshis claim or defence.

116

* 2. Witnesses, including expert witnesses, who are presentedby the parties to testify to the * The arbitral tribunal on any issue offact or expertise may be any individual, notwithstanding that the, if it considers it appropriate, requireindividual is a party to deliver to the tribunal and to the arbitration or in any way related to other party, within such aparty. Unless otherwise directed byperiod of time as the arbitral tribunal, shall decide, a summary of thestatements by witnesses, including expert witnesses, may bepresented in writing and signed by them.documents and other evidence which that party intends to present in

support of the facts in issue set out in his statement of claim or

statement of defence.

117

* 3.* At any time during the arbitral proceedings the arbitral tribunaltribunal may require the parties to produce documents, exhibits or other evidence

within such a period of time as the arbitraltribunal shall determine.4. The arbitral tribunal shall determine the admissibility,.relevance, materiality and weight of the evidence offered.Hearings

118

* Article 2825 *

119

* 1.* In the event of an oral hearing, the arbitral tribunal shall give

the parties adequate advance notice of the date, time and place thereof.

120

* 2. Witnesses, including expert* If witnesses, may are to be heard under, at least fifteen days before the conditions and examined in the manner set by the

hearing each party shall communicate to the arbitral tribunal. and to the3.other party the names and addresses of the witnesses he intends to

present, the subject upon and the languages in which such witnesses will

give their testimony.

121

* 3.* The arbitral tribunal shall make arrangements for the translation

of oral statements made at a hearing and for a record of the hearing if

either is deemed necessary by the tribunal under the circumstances of

the case, or if the parties have agreed thereto and have communicated

such agreement to the tribunal at least fifteen days before the hearing.

122

* 4.* Hearings shall be held in camera unless the parties agreeotherwise. The arbitral tribunal may require the retirement of anywitness or witnesses, including expert witnesses, during the testimony of other witnesses. Thetestimony of such other witnesses, except that a witness,including an expert witness, whoarbitral tribunal is a partyfree to determine the arbitrationshall not,manner in principle, be asked to retire.which witnesses are4.examined.

123

* 5.* Evidence of witnesses may also be presented in the form of written

statements signed by them.

124

* 6.* The arbitral tribunal may direct that witnesses, includingshall determine the admissibility,relevance, materiality and weight of the evidence offered.expert witnesses, be examined through means oftelecommunication that do not require their physical presence at

125

* Article 26 - Interim measures of protection *

126

* 1.* At the hearing (request of either party, the arbitral tribunal may take any

interim measures it deems necessary in respect of the subject-matter of

the dispute, including measures for the conservation of the goods

forming the subject-matter in dispute, such as videoconference).ordering their depositwith a third person or the sale of perishable goods.

127

* 2.* Such interim measures may be established in the form of an interim

award. The arbitral tribunal shall be entitled to require security for

the costs of such measures.

128

* 3.* A request for interim measures addressed by any party to a

judicial authority shall not be deemed incompatible with the agreement

to arbitrate, or as a waiver of that agreement.

129

* Article 27 - Experts appointed by the arbitral tribunal*Article 29

130

* 1. After consultation with the parties, the* The arbitral tribunal may appoint one or more independent experts to report to it, init, in writing, on specific issues to be determined by the arbitraltribunal. Atribunal. A copy of the expert’sexpert's terms of reference, established by the arbitralby the arbitral tribunal, shall be communicated to the parties.Pre-release (12 July 2010)142. The expert shall, in principle before acceptingappointment, submit to the arbitral tribunal and to the parties adescription of his or her qualifications and a statement of his orher impartiality and independence. Within the time ordered bythe arbitral tribunal, the parties shall inform the arbitral tribunalwhether they have any objections as to the expert’squalifications, impartiality or independence. The arbitral tribunalshall decide promptly whether to accept any such objections.After an expert’s appointment, a party may object to the expert’squalifications, impartiality or independence only if the objectionis for reasons of which the party becomes aware after theappointment has been made. The arbitral tribunal shall decidepromptly what, if any, action to take.3.

131

* 2.* The parties shall give the expert any relevant information oror produce for his or her inspection any relevant documents or goods that he or she may

require of them. Any dispute between a party and such expert as to the

relevance of the required information or production shall be referred to the arbitral

the arbitral tribunal for decision.4.

132

* 3.* Upon receipt of the expert’sexpert's report, the arbitral tribunal shallshall communicate a copy of the report to the parties, which who shall be given the

opportunity to express, in writing, their opinion onof the report. A party

shall be entitled to examine any document on which the expert has relied in his or her report.5.in his report.

133

* 4.* At the request of anyeither party, the expert, after delivery of thereport, may be heard at a hearing where the parties shall have theopportunity to be present and to interrogate the expert. At this hearinghearing, anyeither party may present expert witnesses in order to testify on the

points at issue. The provisions of article 2825 shall be applicable to

such proceedings.

134

* Article 28 - Default *Article 30

135

* 1.* If, within the period of time fixed by these Rules or arbitral tribunal, thearbitral tribunal, without showing sufficient cause:(a) The claimant has failed to communicate its statementhis claim without showing sufficientof claim,cause for such failure, the arbitral tribunal shall issue an order forthe termination of the arbitral

proceedings, unless to continue.there are remaining matters that may need to bedecided and the arbitral tribunal considers itappropriate to do so;(b) The respondent has failed to communicate itsresponse to the notice of arbitration or its statement ofdefence, the arbitral tribunal shall order that theproceedings continue, without treating such failure initself as an admission of the claimant’s allegations;the provisions of this subparagraph also apply to aclaimant’s failure to submit a defence to acounterclaim or to a claim for the purpose of a set-off.Pre-release (12 July 2010)15

136

* 2.* If a party,one of the parties, duly notified under these Rules, fails to

appear at a hearing, without showing sufficient cause for such failure, thethe arbitral tribunal may proceed with the arbitration.

137

* 3.* If a party, one of the parties, duly invited by the arbitral tribunal to produce documentarydocuments, exhibits or other evidence, fails to do so within the established period of time, without showing sufficient cause forshowing sufficient cause for such failure, the arbitral tribunal may

make the award on the evidence before it.

138

* Article 29 - Closure of hearings *Article 31

139

* 1.* The arbitral tribunal may inquire of the parties if they have anyany further proof to offer or witnesses to be heard or submissions to make

and, if there are none, it if may declare the hearings closed.

140

* 2.* The arbitral tribunal may, if it considers it necessary owing toto exceptional circumstances, decide, on its own initiativemotion or upon application

of a party, to reopen the hearings at any time before the award is made.before the award is made.Waiver of

141

* Article 30 *

142

A party who knows that any provision of, or requirement under, these

Rules has not been complied with and yet proceeds with the arbitration

without promptly stating his objection to such non-compliance, shall be

deemed to have waived his right to object.

143

* SECTION IV - THE AWARD *

144

* Article 32A failure by any party to object promptly to any noncompliancewith these Rules or with any requirement of thearbitration agreement shall be deemed to be a waiver of the rightof such party to make such an objection, unless such party canshow that, under the circumstances, its failure to object wasjustified.Section IV. The award31 - Decisions *Article 33

145

* 1.* When there is more than one arbitrator,are three arbitrators, any award or other decision of

the arbitral tribunal shall be made by a majority of the arbitrators.the arbitrators.

146

* 2.* In the case of questions of procedure, when there is no majoritymajority or when the arbitral tribunal so authorizes,authorises, the presiding

arbitrator

may decide alone,on his own, subject to revision, if any, by the arbitral

tribunal.

147

* Article 32 - Form and effect of the award *Article 34

148

* 1. The * In addition to making a final award, the arbitral tribunal mayshall

be entitled to make separateinterim, interlocutory, or partial awards on.different issues at different times.

149

* 2. All awards* The award shall be made in writing and shall be final and binding

on the parties. The parties. The parties shall undertake to carry out all awardsthe award without delay.Pre-release (12 July 2010)

16

150

* 3.* The arbitral tribunal shall state the reasons upon which the awardaward is based, unless the parties have agreed that no reasons are to be given.

151

* 4.* An award shall be signed by the arbitrators and it shall contain

the date on which the award was made and indicate theand the place of arbitration.where the award was made. Where there is more than one arbitrator andanyare three arbitrators and one of them fails to sign, the award shall

state the reason for theabsence of the signature.

152

* 5. An* The award may be made public only with the consent of allboth parties.parties or where and to the extent disclosure is required of aparty by legal duty, to protect or pursue a legal right or inrelation to legal proceedings before a court or other competentauthority.

153

* 6.* Copies of the award signed by the arbitrators shall becommunicated to the parties by the arbitral tribunal.

154

* 7.* If the arbitration law of the country where the award is made

requires that the award by filed or registered by the arbitral tribunal,

the tribunal shall comply with this requirement within the period of

time required by law.

155

* Article 33 - Applicable law, amiable compositeur *Article 35

156

* 1.* The arbitral tribunal shall apply the rules of law designated by theby the parties as applicable to the substance of the dispute. Failing such

designation by the parties, the arbitral tribunal shall apply the law which it determines to be appropriate.determined by the conflict of laws rules which it considers applicable.

157

* 2.* The arbitral tribunal shall decide as amiable compositeur or ex

aequo et bono only if the parties have expressly authorizedauthorised the arbitralthe arbitral tribunal to do so. and if the law applicable to the arbitral procedurepermits such arbitration.

158

* 3.* In all cases, the arbitral tribunal shall decide in accordancewith the terms of the contract, if any, and shall take into account the usages ofany usage of the trade applicable to the transaction.Settlement or other grounds for termination

159

* Article 3634 *

160

* 1.* If, before the award is made, the parties agree on a settlement of

the dispute, the arbitral tribunal shall either issue an order for the

termination of the arbitral proceedings or, if requested by theboth parties

and accepted by the arbitral tribunal, record the settlement in the form of an

arbitral award on agreed terms. The arbitral tribunal is not obliged to

give reasons for such an award.

161

* 2.* If, before the award is made, the continuation of the arbitralarbitral proceedings becomes unnecessary or impossible for any reason not

mentioned in paragraph 1, the arbitral tribunal shall inform the parties

of its intention to issue an order for the termination of thetermination of the proceedings. The arbitral tribunal shall have the power to issue such an

order unless there are remaininga party raises justifiable grounds for objection.matters that may need to be decided and the arbitral tribunalconsiders it appropriate to do so.

162

* 3.* Copies of the order for termination of the arbitral proceedings or

of the arbitral award on agreed terms, signed by the arbitrators, shall

be communicated by the arbitral tribunal toPre-release (12 July 2010)17 the parties. Where an

arbitral award on agreed terms is made, the provisions of article 34, 32,

paragraphs 2, 4 and 54 to 7, shall apply.

163

* Article 35 - Interpretation of the award *Article 37

164

* 1.* Within 30thirty days after the receipt of the award, aeither party, withwith notice to the other parties,party, may request that the arbitral tribunalgive an interpretation of the award.

165

* 2.* The interpretation shall be given in writing within 45 forty-five

days after the receipt of the request. The interpretation shall form

part of the award and the provisions of article 34,32, paragraphs 2 to 6,7,shall apply.

166

* Article 36 - Correction of the award *Article 38

167

* 1.* Within 30thirty days after the receipt of the award, aeither party, withwith notice to the other parties, party, may request the arbitral tribunal tocorrect in the award any errors in computation, any clerical ortypographical error,errors, or any error or omission s of a similar nature.If the arbitral tribunal considers that the request is justified, itshall make the correction within 45 days of receipt of therequest.

2. The arbitral

tribunal may within 30thirty days after the communication of the award

make such corrections on its own initiative.3.

168

* 2.* Such corrections shall be in writing, and shall form partthe provisions ofthe award. The provisions of article 34,32, paragraphs 2 to 6,7, shall apply.

169

* Article 37 - Additional award *Article 39

170

* 1.* Within 30thirty days after the receipt of the termination order oraward, either party,the award, a party, with notice to the other parties,party, may request the arbitral tribunal to

make an award or an additional award as to claims presented in the arbitral

proceedings but not decidedomitted from the award.by the arbitral tribunal.

171

* 2.* If the arbitral tribunal considers the request for an award oradditionaladditional award to be justified, and considers that the omission can be rectified

without any further hearings or evidence, it shall render or complete its awardaward within 60sixty days after the receipt of the request. The arbitraltribunal may extend, if necessary, the period of time withinwhich it shall make the award.

172

* 3.* When such an award or additional award is made, the provisions of article 32provisions of article 34, paragraphs 2 to 6,7, shall apply.Definition of costs

173

* Articles (38 to 40) - Cost *

174

* Article 4038 *1.

175

The arbitral tribunal shall fix the costs of arbitration in theits award.final award and, if it deems appropriate, in another decision.2. The term “costs”"costs" includes only:Pre-release (12 July 2010)18

176

* (a)* The fees of the arbitral tribunal to be stated separately as to

each arbitrator and to be fixed by the tribunal itself in accordance

with article 41;39;

177

* (b)* The reasonable travel and other expenses incurred by the arbitrators;

178

* (c)* The reasonable costs of expert advice and of other assistance required by the arbitral tribunal;the arbitral tribunal;

179

* (d)* The reasonable travel and other expenses of witnesses to the extent such

expenses are approved by the arbitral tribunal;arbitral tribunal;

180

* (e)* The costs for legal representation and other assistance of the

successful party if such costs incurred bywere claimed during the parties inarbitralrelation to the arbitration proceedings, and only to the extent that the arbitral tribunaltribunal determines that the amount of such costs is reasonable;

reasonable;

181

* (f)* Any fees and expenses of the appointing authority as well as the fees and

expenses of the Secretary-General of the PCA.Permanent Court of Arbitration3. In relation to interpretation, correction or completion ofany award under articles 37 to 39, the arbitral tribunal maycharge the costs referred to in paragraphs 2 (b) to (f), but noadditional fees.Fees and expenses of arbitratorsat The Hague.

182

* Article 4139 *

183

* 1.* The fees and expenses of the arbitratorsarbitral tribunal shall be reasonable in amount,

taking into account the amount in dispute, the complexity of the

subject -matter, the time spent by the arbitrators and any other relevant

circumstances of the case.

184

* 2.* If there is an appointing authority and it applies or hashas been agreed upon by the parties orstateddesignated by the Secretary-General of the Permanent Court of

Arbitration at The Hague, and if that it will applyauthority has issued a schedule or particular method forofdetermining the fees for arbitrators in international cases, which it administers, thearbitral tribunal in fixing its fees shall take that schedule orof feesmethod into account to the extent that it considers appropriate in thethe circumstances of the case.3. Promptly after its constitution, the arbitral tribunal shallinform the parties as to how it proposes to determine its fees andexpenses, including any rates it intends to apply. Within 15 daysof receiving that proposal, any party may refer the proposal tothe a

185

* 3.* If such appointing authority for review. If, withinhas not issued a schedule of fees for45 days of receipt of such a referral, arbitrators in international cases, any party may at any time request

the appointing authorityfinds that to furnish a statement setting forth the proposal of the arbitral tribunal is inconsistent withbasisparagraph 1, it shall make any necessary adjustments thereto,which shall be binding upon the arbitral tribunal.4. (a) When informing the parties of the arbitrators’ fees andexpenses that have been fixed pursuant to article 40, paragraphs2 (a) and (b), the arbitral tribunal shall also explain the mannerfor establishing fees which is customarily followed in international

cases in which the corresponding amounts have been calculated.(b) Within 15 days of receiving the arbitral tribunal’sdetermination of fees and expenses, any party may refer forreview such determination toauthority appoints arbitrators. If the appointing authority. If noPre-release (12 July 2010)19appointing authority has been agreed upon or designated, or ifconsents to provide such a statement, the appointing authority fails to act within the time specifiedarbitral tribunal inthese Rules, then the reviewfixing its fees shall be made bytake such information into account to the extent

that it considers appropriate in the Secretary-circumstances of the case.General of the PCA.(c) If

186

* 4.* In cases referred to in paragraphs 2 and 3, when a party so

requests and the appointing authority orconsents to perform the Secretary-General of thefunction,PCA finds that the arbitral tribunal’s determination isinconsistent shall fix its fees only after consultation with

the arbitral tribunal’s proposal (and anyadjustment thereto) under paragraph 3 or is otherwisemanifestly excessive, it shall, within 45 days of receiving such areferral,appointing authority which may make any adjustments comment it deems appropriate

to the arbitral tribunal’sdetermination that are necessary to satisfy concerning the criteria inparagraph 1. Any such adjustments shall be binding upon thearbitral tribunal.(d) Any such adjustments shall either be included by thearbitral tribunal in its award or, if the award has already beenissued, be implemented in a correction to the award, to whichthe procedure of article 38, paragraph 3 shall apply.5. Throughout the procedure under paragraphs 3 and 4, thearbitral tribunal shall proceed with the arbitration, in accordancewith article 17, paragraph 1.6. A referral under paragraph 4 shall not affect anydetermination in the award other than the arbitral tribunal’s feesand expenses; nor shall it delay the recognition and enforcementof all parts of the award other than those relating to thedetermination of the arbitral tribunal’s fees and expenses..Allocation of costs

187

* Article 4240 *

188

* 1. The * Except as provided in paragraph 2, the costs of the arbitration shall

in principle be borne by the unsuccessful party or parties. However, the arbitral tribunaltribunal may apportion each of such costs between the parties if itdetermines that apportionment is reasonable, taking into account thethe circumstances of the case.

189

* 2. The * With respect to the costs of legal representation and assistance

referred to in article 38, paragraph (e), the arbitral tribunal, taking

into account the circumstances of the case, shall in the final award or, if it deemsappropriate, in any other award, be free to determine any amount

which party shall bear such costs or may apportion such costs between

the parties if it determines that apportionment is reasonable.party may have to pay to another party as a result of the decision

on allocation of costs.

190

* 3.* When the arbitral tribunal issues an order for the termination of

the arbitral proceedings or makes an award on agreed terms, it shall fix

the costs of arbitration referred to in article 38 and article 39,

paragraph 1, in the text of that order or award.

191

* 4.* No additional fees may be charged by an arbitral tribunal for

interpretation or correction or completion of its award under articles

35 to 37.

192

* Article 41 - Deposit of costs *Article 43

193

* 1.* The arbitral tribunal, on its establishment, may request theeachparties party to deposit an equal amount as an advance for the costs referred toreferred to in article 40,38, paragraphs 2 (a) to , (b) and (c).

194

* 2.* During the course of the arbitral proceedings the arbitraltribunal may request supplementary deposits from the parties.

195

* 3.* If an appointing authority has been agreed upon by the parties ordesignated, by The Hague, and when a party so requests and the appointingauthority consents to perform the function, the arbitral tribunal shallPre-release (12 July 2010)20shall fix the amounts of any deposits or supplementary deposits only after

consultation with the appointing authority, which may make any comments

to the arbitral tribunal thatwhich it deems appropriate concerning the

amount of such deposits and supplementary deposits.

196

* 4.* If the required deposits are not paid in full within 30thirty daysafter the receipt of the request, the arbitral tribunal shall so inform

the parties in order that one or moreanother of them may make the required

payment. If such payment is not made, the arbitral tribunal may order

the suspension or termination of the arbitral proceedings.

197

* 5.* After a termination order or finalthe award has been made, the arbitral tribunal shall render

an accounting to the parties of the deposits received and return any

unexpended balance to the parties.Pre-release (12 July 2010)21

AnnexModel arbitration clause for contracts

198

* Model Arbitration Clause or Separate Arbitration Agreement *

199

Any dispute, controversy or claim arising out of or relating to this

contract, or the breach, termination or invalidity thereof, shall be

settled by arbitration in accordance with the UNCITRAL Arbitration Rules.Note —as present in force. Parties should may wish to consider adding: (a) The

appointing authority shall be ...____________ (name of institution or

person); (b) The number of arbitrators shall be ...____________ (one or

three); (c) The place of arbitration shall be ...____________ (town andorcountry); (d) The language(s) to be used in the arbitral proceedingsshall be ... ____________.

Possible waiver statementNote — If the parties wish to exclude recourse against thearbitral award that may be available under the applicable law,they may consider adding a provision to that effect as suggestedbelow, considering, however, that the effectiveness andconditions of such an exclusion depend on the applicable law.Waiver: The parties hereby waive their right to any form ofrecourse against an award to any court or other competentauthority, insofar as such waiver can validly be made under theapplicable law.Model statements of independence pursuant toarticle 11 of the RulesNo circumstances to disclose: I am impartial andindependent of each of the parties and intend to remain so. Tothe best of my knowledge, there are no circumstances, past orpresent, likely to give rise to justifiable doubts as to myimpartiality or independence. I shall promptly notify the partiesand the other arbitrators of any such circumstances that maysubsequently come to my attention during this arbitration.Circumstances to disclose: I am impartial and independentof each of the parties and intend to remain so. Attached is astatement made pursuant to article 11 of the UNCITRAL

Arbitration Rules of (a) my past and present professional,business and other relationships with the parties and (b) anyother relevant circumstances. [Include statement] I confirm thatthose circumstances do not affect my independence andimpartiality. I shall promptly notify the parties and the otherPre-release (12 July 2010)22arbitrators of any such further relationships or circumstances thatmay subsequently come to my attention during this arbitration.Note — Any party may consider requesting from thearbitrator the following addition to the statement ofindependence:I confirm, on the basis of the information presently available to me,that I can devote the time necessary to conduct this arbitrationdiligently, efficiently and in accordance with the time limits in theRules.

200