Arbitration Clause

Example B: [DA #12]

Arbitration. If a Dispute is not resolved by consultations within sixty (60) days after one Party has served written notice on the other Party for the commencement of such consultations, then such Dispute will be finally settled and determined by arbitration in Hong Kong under the Arbitration Rules of the United Nations Commission on International Trade Law by arbitrators appointed in accordance with such Rules. The arbitration and appointing authority. will be the Hong Kong International Arbitration Centre ("HKIAC"). The arbitration will be conducted by a panel of three (3) arbitrators, one chosen by Supplier, one chosen by Distributor, and the third by agreement of the Parties; failing agreement within thirty (30) days of commencement of the arbitration proceedings, the HKIAC will appoint the third arbitrator. The proceedings will be confidential and conducted in English. The legal remedies that would be available in any judicial proceeding instituted to resolve a disputed matter and its award will be final and binding on the parties . The arbitral tribunal will determine how the Parties will bear the costs of the arbitration. Notwithstanding the foregoing, each Party will have the right at any time to immediately seek injunctive relief, an award of specific performance or any other equitable relief against the other Party in any court or other tribunal of competent jurisdiction. During the pendency of any arbitration or other proceeding relating to a Dispute between the Parties, the Parties will continue to exercise their remaining respective rights and fulfill their remaining respective obligations under this Agreement, except with regard to the matters under dispute.

1) What are the strengths?

2) What are the weaknesses? For example, is there too much detail or insufficient detail? Are there any ambiguities?

4) Use the arbitration check list below to establish where and how the arbitration clauses overlap and where there are gaps.

Arbitration Check List:

Scope of Arbitration

Location of Arbitration

Number of Arbitrators

Selection process/composition

Rules of Arbitration (e.g. UNCITRAL)

Governing Law for the Substantive Issues

Confidentiality

Language of arbitration Proceedings

Arbitrator's written response for the award

Permitting Punitive Damages

Agreement to enter judgement

Cost, Fees, Expenses

Remedies for failure to arbitrate

Hybrid mediation -arbitration

Additional Points