APPLICATION FOR ARBITRATION

Procedure of Applying for Arbitration:

I. Submit an arbitration agreement;

II.Submit the Application for Arbitration;

III Submit the facts and evidence on which the claim is based;

IV.Prepay the Arbitration Fee.

After the claimant has completed the above-mentioned requirements,the Notice of Arbitration will be send to the parties by CIETAC-Shanghai immediately,which means the Arbitration procedure begins thereupon.The claimant may also request to amend his arbitration claim during a reasonable time thereafter.

ARBITRATION COSTS

When applying for arbitration,the parties shall pay certain fees in advance,which include:

I.The arbitration fee

The arbitration fee shall be paid in advance by the claimant when applying for arbitration or by the respondent when lodging his counterclaim.The collection of the arbitration fee shall be based on the Arbitration Fee Schedule in CIETAC Arbitration Rules.The arbitration tribunal shall decide in the arbitral award which party should bear the arbitration fee and how much each party should bear.

II.The actual costs

The actual costs include those for making investigations and collecting evidence,costs for engaging expert to make appraisal and expenses necessary for the arbitrators from places other than Shanghai or foreign arbitrators to attend the hearing.The arbitration tribunal shall decide which party shall pay the deposit for making investigations and collecting evidence,and those for engaging expert to make appraisal;and the actual expenses for the arbitrator outside Shanghai or foreign arbitrator to attend the hearing shall be paid in advance by the party who appoints the arbitrator.The arbitration tribunal shall decide in the arbitral award,which party should bear those actual fees and expenses,and how much each party should bear. The winning party is entitled to request the losing party to pay as compensation a proportion of the expenses reasonably incurred by the winning party in dealing with the case.The amount of such compensation shall not in my case exceed 10% of the total amount awarded to the winning party.

The arbitration fee for those domestic cases as indicated in the third,fourth,fifth items of the Scope of Accepted Cases is lower than that of for those foreign-related cases as indicated in the first and second items.