RULES OF THE POLISH ARBITRATION ASSOCIATION ON THE ORGANIZATION OF ARBITRAL PROCEEDINGS ACCORDING TO THE UNCITRAL ARBITRATION RULES

§ 1

These Rules apply if the parties have agreed that disputes arising out of their legal relationship shall be resolved by arbitration organized by the Polish Arbitration Association (hereinafter called the "PAA" or "Association") in accordance with the UNCITRAL Arbitration Rules.

§ 2

The PAA provides full organizational and administrative services for arbitral proceedings organized under these Rules, and particularly:

(a) necessary assistance in establishing arbitral tribunals as well as in the distribution of correspondence between the parties and arbitrators connected with the arbitral proceeding;

(b) assistance in organizing premises for hearings and, if necessary, arbitrators' meetings;

(c) professional recording of hearings (minutes);

(d) securing qualified interpreters for hearings and, if necessary, for arbitrators' meetings;

(e) assistance in fixing dates and locations of hearings and arbitrators’ meetings;

(f) collection of arbitrators' fees and maintenance of financial accounts connected with arbitral proceedings;

(g) conducting other administrative functions and duties ordered by the presiding arbitrators or sole arbitrators deemed necessary for the proper conduct of the proceeding.

§ 3

1. The place of arbitration is Warsaw unless the parties agree otherwise.

2. Arbitral proceedings are conducted according to the UNCITRAL Arbitration Rules subject to changes agreed upon by the parties or arising out of these Rules.

§ 4

1. In order to facilitate the selection of members of arbitral tribunals, the Association shall maintain the list of persons of different nationalities who have, in opinion of the Board of the Association, the qualifications necessary to serve as an arbitrator. Persons whose names appear on the list are recommended by the PAA. Parties are free, however, to choose arbitrators that are not on the list.

2. Before the arbitrators assume their functions, they must file statements of impartiality and independence with the Secretariat of the PAA.

§ 5

1. The party initiating the arbitral proceeding should send to the Secretary of the PAA the statement of appointment of an arbitrator, a copy of pleading to the respondent the stating the subject matter and the value of the dispute and calling upon the other party to nominate its arbitrator within two weeks. At the same time, the party should remit to the bank account of the Association the Polish Zloty equivalent of USD 1,000 as the preliminary advance for administrative costs of the arbitral proceedings.

2. The respondent should send to the Secretary of the PAA a copy of the response which should include the full name and address of the arbitrator appointed by this party and the counter-claim, if any, at the same time that the original documents are sent to the complainant.

3. If the respondent files the counter-claim, this party should also simultaneously remit to the bank account of the Association the Polish Zloty equivalent of USD 1,000 as the preliminary advance for administrative costs of the arbitral proceeding.

4. Should the parties fail to pay the amounts indicated above, the proceeding relating to the complaint or the counter-claim, respectively, shall not be commenced.

5. The nominated arbitral tribunal may correspond and communicate with the parties, at its discretion, through the Secretary of the Association as intermediary or directly with the parties. In the latter case, copies of the correspondence shall be simultaneously sent to the Secretary of the Association.

6. If pleadings and documents are to be delivered by the Secretary of the Association as intermediary, the Secretary should be provided with a copy for each addressee plus one copy for the Secretary.

§ 6

1. The body authorized to appoint substitute arbiters, within the meaning of the UNCITRAL Rules of Arbitration, shall be composed of three members of the Board of the Association, including the President of the Association or a Vice President acting for the President.

2. The Association is also authorized to appoint substitute arbiters and make decisions regarding the exclusion of members of the arbitral tribunal if its competence in this respect results from an arbitration agreement, which does not refer to these Rules.

3. The Association shall charge the Polish Zloty equivalent of USD 1,000 in connection with services performed in appointing a substitute arbiter.

§ 7

1. The amount of an advance for the costs of proceedings is determined, on the motion of the Secretary, by the President of the Association or a Vice President acting for the President in accordance with the paragraphs 10 and 11, and taking into account the value of the claim stated in the notice of arbitration or in the complaint and, if any, the value of the counter-claim specified in the response, as well as anticipated costs connected with the arbitral proceeding including:

(a) administrative expenses of the Association and the arbitral tribunal connected with the performance of acts resulting from these Rules, together with the translation costs at hearings and the fee of the recording clerk;

(b) arbitrators' expenses connected with their participation in the proceeding, such as travel expences, costs of hotels and allowances, as well as other reasonable costs;

(c) arbitrators' fees

2. If the value of the object of litigation cannot be specified as a cash amount, the amount of the advance for the costs of the proceeding shall be determined by taking into consideration the circumstances and the nature of the case.

3. During the arbitral proceeding and upon the motion of the arbitral tribunal the amount of the advance may be increased.

4. The parties shall deposit the advance in equal parts at the Association's bank account within the period fixed by the President of the Association or a Vice President acting for the President. In case of the failure of one of the parties to pay his part of the advance, this part may be paid by the other party.

5. If the payment has not been made within the due date, the arbitral proceedings shall not be commenced, and if such non-payment continues for six months from the due date, President of the Association or a Vice President acting for the President shall terminate the proceedings in respect to the complaint or the counter-claim respectively.

6. The amount of an advance for the costs of an expert opinion or other act in connection with the proceeding, admitted by the arbitral tribunal, shall be determined by the arbitral tribunal. Such an advance shall be paid by the party requesting the expert opinion or other act in connection with the proceeding. In case the appointment of an expert is made by the arbitral tribunal acting ex officio or upon motion of both parties, the advance shall be paid in equal parts by both parties. The consequences of the non-payment of an advance for expert costs or the performance of other act in connection with the proceeding shall be determined by the arbitral tribunal.

7. The advances for the costs of arbitral proceedings, including the advance for expert opinion or the performance of other act in connection with the proceeding shall be remitted to the bank account of the PAA.

§ 8

1. The amount of the costs of arbitral proceedings and its allocation between the parties are determined in the award of the arbitral tribunal which has resolved the dispute. The costs include the arbitrators' fees and administrative fees of the Association determined in accordance with Paragraphs 10 and 11 of these Rules, as well as arbitrators' expenses connected with their participation in the proceeding and expenses incurred in connection with necessary expert opinions or other acts of the arbitral tribunal, as the case may be.

§ 9

Awards of arbitral tribunals that conclude the proceedings and are rendered upon these Rules, shall bear the seal and the signatures of the President or the Vice President of the Association, confirming the authenticity of the signatures of the members of the arbitral tribunal.

§ 10

The administrative fees of the Association shall be calculated in accordance with the following principles:

§ 11

1. Arbitrators' fees shall be calculated in relation to the value of the object of litigation, i.e. separately upon the complaint and the counterclaim, according to the following principles:

2. The fee of the presiding arbitrator of the arbitral tribunal and the fee of the sole arbitrator shall be 30% higher than the arbitrator’s fee.

§ 12

These Rules come into force on October 26, 1999.

Wszelkie prawa zastrzeżone - PSSP. Warszawa, Poland 2002