Section 1. Rules and Arrangements of the Parties
1.1 Brno Arbitration Centre, with its registered office at Brno, Hostislavova 26, postal code 641 00 (hereinafter referred to as "B.A.C."), is a legal entity established according to Act No. 83/1990 Coll., the objective of which is in particular to ensure development of arbitration proceedings in the Czech lands.
1.2 B.A.C. issued these Fundamental Rules of Arbitration Proceedings (hereinafter referred to as the "Rules"), according to which such disputes will be resolved within arbitration proceedings, in relation to which certain natural or legal persons (hereinafter referred to as the "Parties") arranged in writing (hereinafter referred to as the "Contract with Arbitration Clause") to be decided within arbitration proceedings according to the Fundamental Rules of Arbitration Proceedings issued by the Brno Arbitration Centre, with its registered office at Brno, Hostislavova 26, postal code 641 00, and published at the internet address http://www.arbitraznicentrum.cz, namely by an arbitrator appointed by the chairman of B.A.C. according to the Rules.
1.3 The valid and effective wording of the Rules is published at the internet address http://www.arbitraznicentrum.cz. Any changes of the Rules shall be effective as of the moment of their publishing at the said internet address unless a later date is determined. In the event the Contract with Arbitration Clause lays down that the Rules form its integral part, it shall mean the Rules in their wording effective at the moment of entering into the Contract with Arbitration Clause.
1.4 Following the delivery of an arbitration petition, the chairman of B.A.C. or a person expressly authorized by the chairman of B.A.C. thereto shall appoint an arbitrator from members of B.A.C., whom the arbitration petition shall be handed over to conduct the arbitration proceedings in the concerned case (hereinafter referred to as the "Arbitrator").
1.5 Should following the acceptance of the function the Arbitrator resign from his office for serious reasons or be unable to keep discharging this office, then the chairman of B.A.C. or a person expressly authorized by the chairman of B.A.C. thereto shall within 10 days select another Arbitrator who will hear and decide the case.

Section 2. Proceedings
2.1 Arbitration proceedings (hereinafter referred to as the "Proceedings") shall be held in the Czech Republic or another state of the European Union, the specific place to be determined by the Arbitrator. The Proceedings shall be held only in writing on the basis of written supporting documents presented by the Parties, i.e. without an oral hearing of the case, and the arbitral award will not include any reasoning. The Arbitrator shall hear and decide the case according to Clause 3, Section 25 of Act No. 216/1994 Coll., according to the principles of equity. The Proceedings shall be held and the arbitral award shall be issued in English.
2.2 On motion of one of the Parties in exceptional cases, the Arbitrator may conduct oral proceedings in the case, ordering a hearing before the Arbitrator. The Party proposing to conduct oral proceedings in the case shall be obliged to pay a fee for conducting the oral proceedings in the amount of the Fee specified in Article 3.1 of the Rules, however, at least in the amount of CZK 10,000.00. In the event of a failure to pay this fee for conducting the oral proceedings within three days as of the date of filing the motion to conduct the oral proceedings in the case, then the motion to conduct oral proceedings shall be disregarded. In the event the oral proceedings are ordered in the case, the Parties shall be obliged to attend the ordered hearing; should the defendant fail to attend or leave the hearing before its termination, it shall apply that the defendant acknowledges the obligation claimed against it by the plaintiff and the Arbitrator shall decide according to this acknowledgement.
2.3 Within the Proceedings, the Arbitrator shall proceed in a manner he considers suitable so that the facts at issue of the case necessary to decide the dispute are discovered without excessive formalities while maintaining the balances position and providing the same opportunity to assert rights of all Parties.
2.4 The Proceedings shall commence on the ground of an arbitration petition delivered to B.A.C. by registered mail to the address of its registered office. The Proceedings are commenced upon handover of the arbitration petition to the Arbitrator by the chairman of B.A.C. or by the person expressly authorized thereto by the chairman of B.A.C.; it shall be handed over no later than within eight days as of the arbitration petition delivery to B.A.C. The Arbitrator shall be obliged to state the date, on which the petition was handed over to him, in the petition. A handover of the arbitration petition to the Arbitrator shall have the same legal effects as if a petition in this case was filed with a court.
2.5 The Party who filed an arbitration petition is a plaintiff, the Party against whom the petition is aimed is the defendant.
2.6 It has to be clear from the arbitration petition, whom it is addressed, who is making it, which case it concerns, it has to include description of decisive facts, identification of evidence, to which the plaintiff refers, and it has to be clear from it, what the plaintiff sues for. The arbitration petition shall include the phone number and possible also an e-mail address of the plaintiff; as concerns the defendant, these data shall be included as long as they are known to the plaintiff.
2.7 An original Contract with Arbitration Clause or its officially verified copy and further the documentary evidence that may be presented in ordinary copies, have to be attached to the arbitration petition. The Arbitrator shall be authorized to call on the Parties to supplement also originals or officially verified copies of the documentary evidence presented in the form of copies; should the concerned Party fail to do so, the Arbitrator may disregard the concerned documentary evidence. The plaintiff has to present all pieces of documentary evidence together with the petition, the defendant has to present them simultaneously with its statement to the petition provided on request of the Arbitrator; for the provision thereof, the defendant shall have the period of at least five days. The arbitration petition shall be filed in a number of copies corresponding to the number of Parties increased by two. Attachments to the petition and pieces of documentary evidence also have to be presented in the same number of copies as the petition. To one counterpart of the petition, the Contract with Arbitration Clause has to be in the form of an original or an officially verified copy, to the other counterparts of the petition, it is sufficient to attach it in the form of a copy. This shall apply also to statements to the petition accordingly.
2.8 Unless determined otherwise hereinbelow, the provisions of the Rules applicable to the main petition shall apply accordingly also to making a counterclaim in the form of a set-off objection and to claiming a mutual motion (a cross action).

Section 3. Costs of Proceedings
3.1 The fee for the arbitration proceedings (hereinafter referred to as the "Fee") amounts to 4 % of the value of the object of dispute, however, no less than CZK 25,000.00. In order to set the value of the object of dispute, one shall apply the methodology for setting the basis of the percentage court fee laid down by Act on Court Fees accordingly. Should it be impossible to set the value of the object of dispute in this manner, the Fee shall amount to the quadruple of the specified minimum Fee. Should the number of defending Parties be higher than one, the Fee shall be increased by other 2 % of the value of object of dispute, however, by no less than CZK 2,500.00 per every other Party on the side of the defendant. The Fee shall be paid within 7 days as of delivery of the request to pay the fee to the plaintiff. In the event of a failure to pay the Fee to the Arbitrator, the Arbitrator shall not be obliged to accept the office of an arbitrator. The Fee shall be paid to the Arbitrator by the plaintiff. In the event there are several persons on the side of the plaintiff, they shall pay the Fee jointly and severally. Should the Arbitrator be a value added tax (hereinafter referred to as the "VAT"), the arbitration fee set according to the foregoing sentences hereof or other Articles of the Rules, shall be increased by the respective VAT. In such event, the Arbitrator shall issue a tax document to the person who has paid the arbitration fee.
3.2 Should on the motion of a certain person, the Arbitration render a decision on admissibility of the person's intervention in the Proceedings, such person shall be obliged to pay a fee to the Arbitrator in the amount of the Fee set according to the foregoing Article. Until the intervening party pays the Fee, it shall not be admitted to the Proceedings. The fee set according to Article 3.1 of the Rules shall be increased in the event the arbitration petition is filed in a lower number of copies than specified in Article 2.7 of the Rules, namely by CZK 300.00 per each missing copy or possibly per each copy delivered to B.A.C. without its attachments - copies of documentary evidence (Article 2.7 of the Rules).
3.3 In the event the plaintiff withdraws a filed petition before the invitation to provide one's statement on the petition is sent to the defendant, it shall have 50 % of the Fee repaid to it. In the event of a later withdrawal, the Fee or its part shall not be repaid to the Plaintiff. The fee for a change or amendment of the arbitration petition (except for an amendment of the arbitration petition on the Arbitrator's request) amounts to at least CZK 2,500.00; in the event the change of the arbitration petition rests in an extension of the motion, then it amounts to 4 % of the difference between the value of the object of dispute before the motion's extension and the value of the object of dispute after the motion's extension, however, at least to CZK 2,500.00. In the event of a failure to pay the fee within seven days as of delivery of the request for its payment, the change or amendment of the arbitration petition (except for an amendment of the arbitration petition on the Arbitrator's request) shall be disregarded.
3.4 The defendant claiming a set-off objection in the Proceedings shall be obliged to pay a fee from the value of the set-off claim in the amount of 50 % of the value of the Fee that would be set had the defendant claimed the set-off in the form of a general petition. Should he fail to pay this fee, the claim proposed for set-off shall not be heard. In the event of a failure to pay the fee within seven days as of delivery of the request for its payment, the set-off objection shall be disregarded. In the event of filing a mutual claim (a cross action), the defendant shall be obliged to pay a fee to the Arbitrator in the same amount as if it had asserted the claim by a general petition, namely within seven days as of delivery of the request for its payment. Should he fail to pay this fee by the said deadline, the mutual claim shall be disregarded. In other aspects of the fee for a mutual claim (a cross action), the provisions about the Fee shall apply accordingly.
3.5 Special costs of the arbitration proceedings are the costs incurred by the Arbitrator when hearing specific disputes on the ground of producing evidence, expert's fee, remuneration for preparation of expert opinions, statements, interpreter's fee, travel and accommodation costs, appointment of a guardian etc. Special costs of the arbitration proceedings spent by the Arbitrator in connection with the Proceedings shall be paid on the Arbitrator's request either before their spending in the form of advance payments or immediately after their spending. In the event these costs of the arbitration proceedings (or possibly an advance payment for their coverage) are not paid, the Arbitrator is not obliged to hear and decide the case. The amount of the advance payment to cover the special costs, the Party obliged to provide the payment and the due date shall be determined by the Arbitrator. The Arbitrator shall decide on the account of special costs usually only in the arbitral award. When making a decision on the obligation to pay the special costs of the arbitration proceedings, as regulated hereinbelow in Article 3.10 of the Rules, as well as on the obligation to pay other costs of the arbitration proceedings, the Arbitrator shall consider also the principles of caution. In the event the Arbitrator appoints a guardian for the defendant, the guardian shall be entitled to a remuneration in the amount of CZK 1,300.00 as long as the value of the object of dispute does not exceed the amount of CZK 175,000.00; should the value of the object of dispute be higher than CZK 175,000.00, the guardian shall be entitled to remuneration in the amount of 0.75 % of the value of the object of dispute. In order to set the value of the object of dispute, one shall apply the methodology for setting the basis of the percentage court fee laid down by Act on Court Fees accordingly. Should it be impossible to set the value of the object of dispute in this manner, it shall apply that the value of the object of dispute amounts to CZK 175,000.00. For inspecting the Arbitrator's file, the inspecting Party shall be obliged to pay to the Arbitrator a fee in the amount of CZK 700,00 per each commenced thirty minutes of inspecting. This fee shall be paid to the Arbitrator in advance; should it remain unpaid, the Arbitrator will not allow the inspection. The date of inspecting the Arbitrator's file has to be arranged with the Arbitrator in advance. It is impossible to make copies of any parts of the Arbitrator's files by any means. The Party shall not have the right to request making of such copy by the Arbitrator. The same shall apply to photos and video recordings of the file or its parts. The inspecting Party is only authorized to take written notes during his inspection.
3.6 The Party that within the possible oral proceedings held in accordance with Article 2.2 of the Rules proposes an evidence to be taken by examination of a witness has to deposit the amount of CZK 20,000.00 for reimbursement of the costs connected with such testimony. In the event of a failure to deposit this amount to the Arbitrator within three days as of the date of filing the motion to produce evidence in the form of examining a witness, such motion shall be disregarded. The whole of this amount or its part may be provided to the witness as remuneration for his attendance at the hearing; the Arbitrator shall repay the possible balance without undue delay.
3.7 In addition, the plaintiff shall be obliged to settle possible costs of necessary assistance provided by a state court.
3.8 Fees and cash expenses incurred in connection with the arbitration proceedings shall be paid to the account notified by the Arbitrator.
3.9 Expenses of the Parties to the arbitration proceedings shall include expenses, which the Parties spend in connection with protection of their interests. Except for the costs of legal representation, each Party to the dispute shall bear its expenses himself.
3.10 The Party who is not procedurally successful within the arbitral dispute shall reimburse the costs of the arbitration proceedings to the Party succeeding in the case; this applies in particular to the Fee or the fee for a mutual claim (a cross action) or the fee for filing a counterclaim in the form of a set-off objection, special costs of the arbitration proceedings, the amount deposited for the witness fee according to Article 3.6 of the Rules, costs of necessary assistance by a state court and possible costs of legal representation. The costs of legal representation shall include the remuneration for being represented in the Proceedings by an attorney at law or a notary in the amount of 1.5 multiple of the remuneration rate fixed according to Decree No. 484/200 Coll., as amended, and reimbursement of cash expenses including the reimbursement of travel expenses according to Decree No. 177/1996 Coll., as amended (the Lawyer's Fees). The Arbitrator shall render its decision to reimburse the costs of the arbitration proceedings in the arbitral award, possibly in the resolution ending the arbitration proceedings, namely with regard to the proportion, to which each of the Parties was successful in the dispute.

Section 4. Confidentiality
4.1 In order to guarantee the Arbitrator's impartiality and insusceptibility, the Parties agree that any Arbitrator's liability for damage caused by his decision or procedure within the Proceedings shall be excluded unless he commits a willful breach of his obligations within the Proceedings that represents a crime according to a final and conclusive judgment of the competent criminal court and unless any of the Parties suffers damage from such willful breach of obligations.
4.2 The Arbitrator as well as B.A.C. is obliged to maintain confidentiality of facts, of which they learn during the Proceedings unless relieved from this obligation by the contracting parties. Nevertheless, the Arbitrator shall not be obliged to maintain confidentiality in relation to B.A.C. and in addition to his legal representative provided that any of the below-mentioned proceedings are initiated. The confidentiality shall not apply (the Arbitrator as well as B.A.C. being relieved from the confidentiality by the Parties in this extent) to the following information: name, identification, designation or business name and permanent residence, place of business or registered office of the Parties who entered into an arbitration agreement referring to the Rules, the fact that such arbitration agreement was concluded, the fact that a dispute was heard according to such arbitration agreement or a settlement was concluded. The Arbitrator or B.A.C. shall be authorized to notify the said information even to parties interested in use of an arbitration agreement referring to the Rules, namely even by means of written materials or a public data network (internet). In the event a motion is filed to have the arbitral award issued by the Arbitrator cancelled by court or a motion is filed to suspend the ordered execution of the arbitral award issued by the Arbitrator, the Arbitrator shall not be obliged to maintain confidentiality (he is relieved from the confidentiality by the Parties) in the extent he considers necessary to defend the challenged arbitral award. In addition, the Arbitrator shall be relieved from the confidentiality in the event a petition is filed for compensation of damage caused by a decision, action or omission of the Arbitrator within the Proceedings or in the event criminal information concerning the Arbitrator is provided in connection with such decision, action or omission.
4.3 The Arbitrator may authorized a third party (for example his employee) to perform certain partial actions within the arbitration proceedings, which are mostly of administrative nature (for example copying of the parties' submissions and their attachments or other documents, arranging the dispatch and sending of mail, preparation of the arbitral award and documents evidencing the course of the arbitration proceedings to be handed over to the legal custody according to Section 29 par. 2 of Act No. 216/1994 Coll., and arrangement of such handover); according to the parties' agreement, this is not considered a breach of the Arbitrator's confidentiality obligation and the parties hereby expressly approve this action.

Section 5. Delivery
5.1 The Arbitrator shall deliver the arbitral award and other written documents issued within the Proceedings to the Parties to their addresses specified in the Contract with Arbitration Clause (hereinafter referred to as the "Notified Addresses"). By signing the Contract with Arbitration Clause, the Parties confirmed they were able to collect the delivered mail at the Notified Address any time; in the event they are not temporarily able to collect the mail delivered in this manner for the period of at least 7 days, they shall notify this fact immediately to B.A.C. together with specification of a substitute delivery address. In the event the address changes, the Parties shall be obliged to notify this fact to B.A.C. within 3 days; the notice has to be executed in writing and the signatures must be officially authenticated. In such event, this newly notified address shall be considered the Notified Address.
5.2 All deliveries made by the Arbitrator are valid provided that they were made in the manner specified above, namely even in the event if the addressee refused to accept the document or failed to collect it despite a notice thereof from the delivering post-office. The delivery shall become effective on the date of returning the undelivered mail. Nevertheless, when delivering the arbitration award, it shall apply that when the natural person, whom it is delivered, was not reached at the Notified Address or other address to which mail is delivered or when during a delivery to a legal person, there was no one reached at the Notified Address or other address to which mail is delivered, who would be authorized to accept the mail on behalf of the legal person, the delivering body shall deposit the arbitral award. In the event of a failure to collect the arbitral award within 10 days as of its depositing, the last date of this period shall be considered a delivery date even though the addressee did not learn of the depositing. In the event that in exceptional cases upon a failure to collect the delivered document (other than the arbitral award) and at his discretion, the Arbitrator decides to make a second attempt of delivery, the delivery shall become effective on the date of returning the second undelivered letter or on the date of its delivery. Should after signing of the Contract the Party change its address and fail to duly notify this fact to B.A.C., the delivery shall be considered valid upon sending of the document to the Notified Address. The delivery shall become effective on the date of returning the undelivered letter. At his discretion and exceptionally, the Arbitrator may attempt to deliver a document to the Party to the address specified in a public register (for example the Companies Register) or in the petition or to the address, of which the Arbitrator learns in another manner. Nevertheless, this shall not affect the effects of delivery to the Notified Address. Provided that an advance payment for the guardian's fee according to Article 3.5 of the Rules is deposited, the Arbitrator shall be authorized to appoint a guardian for the Party, in relation to which the delivering body returned the mail to be delivered to the Party to the Arbitrator with a notice that the addressee has moved away from the Notified Address or that he is not known at the place of delivery (at the Notified Address). The respective documents shall be then delivered only to such guardian. Nevertheless, no guardian may be appointed for a legal person incorporated in a public register (for example the Companies Register); instead, the Arbitrator shall deliver the concerned document to such legal person also to the address incorporated in such public register (for example the Companies Register). The resolution on appointment of a guardian shall be published at the web site www.arbitraznicentrum.cz for the period of 30 days. This resolution shall become final and conclusive on the seventh day as of its publishing (posting) at this web site. The Parties expressly approve this procedure and they grant their approvals thereof to the Arbitrator; the Parties do not consider this procedure a breach of the confidentiality obligation.
5.3 Petitions, statements to the petition (petition replies), mutual claims (cross actions), counterclaims asserted in the form of a set-off objection, statements of the Parties or the intervening party, arbitral awards and resolutions shall be delivered to the addresses in the form of a registered letter. Other written documents issued by the Arbitrator may be sent by a registered or an ordinary letter, fax or internet mail (e-mail). Any of the documents may be delivered also in person against a receipt.
5.4 Should any of the Parties appoint an agent to represent the Party in the Proceedings, the Arbitrator may at his discretion deliver documents to the agent instead of the Party, namely with the same effects as if they were delivered directly to the concerned Party.

Section 6. Final Provisions
6.1 The Parties take into account that B.A.C. is not a permanent court of arbitration according to Section 13 of Act No. 216/1994 Coll.; it is an arbitration centre, the objective of which is to arrange development of the general arbitration proceedings and to support activities of arbitrators as well as to guarantee expert qualification and the goodwill of arbitrators appointed to render decisions in individual cases. The Rules regulate the process of the arbitration proceedings so that fair protection of rights and justified interests of the Parties is secured. In accordance with Section 19 par. 1 of Act No. 216/1994 Coll., the Rules shall apply to the Arbitrator as well as to the Parties.