Rules of Simplified Arbitration of TOMAC (2001)

Made 25th April, 1985

Last amended 15th June, 2001

In force 1st September, 2001

Section 1. [Definition]

Simplified Arbitration in the present Rules shall mean arbitration which is performed with speed and simplicity, regarding a dispute over a claim not exceeding Twenty Million Yen (20,000,000), under the present Rules in place of the Ordinary Rules of TOMAC, by agreement between both parties.

Section 2. [Relation between the present Rules and the Ordinary Rules]

All matters which are not covered by the present Rules shall be governed by the Ordinary Rules. In the event of a conflict between the two sets of Rules, the present Rules shall prevail over the Ordinary Rules to the extent of such conflict.

Section 3. [Application for Simplified Arbitration]

Any party wishing to apply for Simplified Arbitration under the present Rules (hereinafter referred to as "the Claimant"), shall file with the TOMAC the documents stipulated in Section 5 of the Ordinary Rules. The Statement of Claim shall be marked with the note to specify that the application is for Simplified Arbitration.

Section 4. [Acceptance of Application for Simplified Arbitration]

(1) When the Secretariat acknowledges that the application complies with the requirements of the preceding Section, it shall accept the application.

(2) The date of acceptance of the application in accordance with the preceding Sub-Section shall be deemed to be the date of commencement of the arbitration proceedings.

Section 5. [Filing of Defense and Supplementary Statement in Simplified Arbitration]

(1) When the Secretariat has accepted the application for Simplified Arbitration, it shall forward to the other party (hereinafter referred to as "the Respondent") an original of the Statement of Claim in Simplified Arbitration together with the respective copies of the documentary evidence submitted, and shall instruct the Respondent to send to the Secretariat and the Claimant respectively the Defense in Simplified Arbitration and any supporting evidence within fifteen (15) days from the day of receipt of such instruction.

(2) Where there is no document evidencing the agreement to refer a dispute to arbitration under these Rules, the Secretariat shall forward to the Respondent, together with those documents specified in the preceding Sub-Section, a notice in writing to the effect that TOMAC shall proceed with the Simplified Arbitration unless the Respondent submits an objection in writing thereto within the period stipulated in the preceding Sub-Section. Where the Respondent has not submitted an objection in writing within the said period, the Respondent shall be deemed to have confirmed that the dispute should be submitted to the Simplified Arbitration under these Rules.

(3) Where the Respondent nominates its agent, the Respondent shall file, on filing of the Defense, a document empowering the agent to act on its behalf.

(4) When the Claimant has received the Defense and documentary evidence (if any), the Claimant shall, if it has any objection to the Defense, send to the Secretariat and the Respondent respectively within ten (10) days from the day of receipt thereof its Supplementary Statement and further documentary evidence, if any.

(5) Further arguments by the parties shall be submitted orally to the Tribunal at the hearing.

(6) The Defense, Supplementary Statement and documentary evidence may be submitted via e-mail or fax, provided that the sending party shall bear the burden of proving that the copies are identical to the originals and that it has in fact forwarded those to the other party.

(7) The documents under this Section shall be submitted in the number of copies as instructed by the Secretariat.

Section 6. [Counterclaim by Respondent]

(1) If the Respondent wishes to apply for Simplified Arbitration of a counterclaim arising out of the same cause or matter, it must do so within the period stipulated in Sub-Section (1) of the preceding Section.

(2) When such an application is made within the period stipulated, Simplified Arbitration of such counterclaim shall, in principle, be performed concurrently with the Simplified Arbitration applied for by the Claimant.

Section 7. [Appointment of Arbitrators]

The TOMAC shall, within ten (10) days from the day when the Respondent's Defense is filed, appoint an uneven number of arbitrators or a sole arbitrator from among persons listed on the Panel of Arbitrators who have no connection with either of the parties or with the matter in dispute.

Section 8. [Hearings]

(1) The Tribunal shall, unless prevented by special circumstances, organize hearings within thirty-five (35) days from the day when the Supplementary Statement under Section 5(4) was filed or should have been filed, whichever is sooner.

(2) The Tribunal shall hold the hearing in the presence of all parties. However, where the Tribunal deems it necessary, separate hearings may be held for the parties.

(3) The parties shall be allowed to have witnesses attend the hearing(s) and give evidence. However, if for whatever reason a witness is unable to attend the hearing(s), a written and signed statement shall be accepted in place of its appearance.

(4) When the parties have submitted an agreement stipulating no hearings, the Tribunal shall omit the hearings referred to in this Section.

(5) The Tribunal may, after taking into consideration the views of the parties, hold a hearing of any of the parties, agents, witnesses or expert witnesses, who are unable to attend because of illness, inconvenient location of residence or other unavoidable reasons, in such a manner as to enable the absentee and all the attendees to communicate with each other through two-way telecommunications technology. In this case, the person who has provided evidence through telecommunications shall be deemed to have attended the hearing.

Section 9. [Mediation]

If either or both of the parties request mediation, or the Tribunal deems it suitable and advisable, the Tribunal may, at any time while the Simplified Arbitration is proceeding, make a mediation proposal. Such mediation shall occupy a maximum of thirty (30) days.

Section 10. [When Award Given]

The Tribunal shall give its award on the case in principle within thirty (30) days from the conclusion of the hearings.

Section 11. [Description of Items in the Award]

In the Simplified Arbitration Award, Nos. 3 and 4 of Section 32(1) of the Ordinary Rules shall be fully satisfied by as brief a description as practicable of the matters referred to therein.

Section 12. [Costs of Simplified Arbitration]

(1) The Claimant shall, when he applies for Simplified Arbitration, pay to the Secretariat a Filing Fee of One Hundred Thousand Yen (100,000). This provision shall also apply where an application for Simplified Arbitration of a counterclaim is filed.

(2) Each party shall, within seven (7) days after the receipt of notice from the Secretariat, pay to the Secretariat the fee (hereinafter referred to as "the Arbitration Fee") which the Tribunal shall determine in accordance with the Tariff of Fees for Simplified Arbitration.

(3) If the Respondent applies for Simplified Arbitration of a counterclaim arising out of the same cause or matter and the Tribunal considers that such Simplified Arbitration can be performed concurrently with the Claimant's application, the amounts claimed and counterclaimed respectively shall be aggregated and the aggregate sum shall be taken as the amount of claim in the Tariff of Fees for Simplified Arbitration.

(4) Each party shall pay the consumption tax imposed on the amount of the each fee as provided in the foregoing (1) to (3).

Section 13. [Apportionment of Costs of Arbitration]

The costs of Simplified Arbitration shall be paid from the Filing Fee and Arbitration Fee paid to the Secretariat under Section 12 and the ratio in which they shall be borne by the parties shall be decided by the Tribunal.

The Tariff of Fees for Simplified Arbitration

The amount of the Simplified Arbitration Fee to be paid by each party shall be as follows:

When the amount of claim is 10,000,000 or less, the fee to be paid is 300,000;

When the amount of claim exceeds 10,000,000, but does not exceed 20,000,000, the fee to be paid is 350,000;

When the amount of claim exceeds 20,000,000, the fee to be paid is the amount to be paid in accordance with the Tariff of Fees for Ordinary Arbitration, less 10%.