Common use of Initial Negotiations and Escalation Procedure Clause in Contracts

Initial Negotiations and Escalation Procedure. (a) Subject to paragraphs 6 and 7, neither party shall commence any legal proceedings in connection with any Dispute until the procedures set out in paragraphs 1(b), 2 and 3 have been completed, unless it is necessary for that party to do so in order to protect or preserve any cause of action it may have against the other party, in which case the proceedings shall be served on the other party and stayed by consent until such time as the parties have completed the procedures set out in paragraphs 1(b), 2 and 3. (b) The parties shall attempt in good faith to resolve any Dispute promptly by negotiation which shall be conducted as follows: (i) any Dispute shall in the first instance be referred by a written notice of Dispute, from the referring party to the other party. Within 10 days after the date on which the notice of Dispute is received, the party receiving the notice of Dispute shall deliver to the other party a written response to the Notice of Dispute (the "Response"). Both the notice of Dispute and the Response shall include a statement of the position of the party preparing the notice of Dispute or Response, and shall annex any documents relied upon by that party; (ii) within 10 Days of receiving a Response to a notice of Dispute, or if no Response is delivered, within 10 days of the date upon which the time for delivery of a Response expired, the parties’ representatives shall meet at mutually acceptable times and places to discuss and try to reach agreement to resolve the Dispute; and (iii) if the parties representatives are unable to, or fail to, reach agreement to resolve the Dispute within 10 days of commencing their discussions pursuant to paragraph 1(b)(ii), then within 5 days our Assistant Director, Communities and Intelligence or his/her nominee and your managing director (or equivalent) or his nominee (collectively the "Directors") shall meet at mutually acceptable times and places to discuss and try to reach agreement to resolve the Dispute. (c) All negotiations and discussions pursuant to paragraph 1(b) are confidential and shall be treated as compromise and settlement negotiations for the purpose of any applicable rules of evidence.

Initial Negotiations and Escalation Procedure. (a) Subject to paragraphs 6 and 7, neither party shall commence any legal proceedings in connection with any Dispute until the procedures set out in paragraphs 1(b), 2 and 3 have been completed, unless it is necessary for that party to do so in order to protect or preserve any cause of action it may have against the other party, in which case the proceedings shall be served on the other party and stayed by consent until such time as the parties have completed the procedures set out in paragraphs 1(b), 2 and 3. (b) The parties shall attempt in good faith to resolve any Dispute promptly by negotiation which shall be conducted as follows: (i) any Dispute shall in the first instance be referred by a written notice of Dispute, from the referring party to the other party. Within 10 days after the date on which the notice of Dispute is received, the party receiving the notice of Dispute shall deliver to the other party a written response to the Notice of Dispute (the "Response"). Both the notice of Dispute and the Response shall include a statement of the position of the party preparing the notice of Dispute or Response, and shall annex any documents relied upon by that party; (ii) within 10 Days of receiving a Response to a notice of Dispute, or if no Response is delivered, within 10 days of the date upon which the time for delivery of a Response expired, the parties’ parties representatives shall meet at mutually acceptable times and places to discuss and try to reach agreement to resolve the Dispute; and (iii) if the parties representatives are unable to, or fail to, reach agreement to resolve the Dispute within 10 days of commencing their discussions pursuant to paragraph 1(b)(ii), then within 5 days our Assistant Director, Communities and Intelligence Chief Executive Officer or his/her nominee and your managing director (or equivalent) or his nominee (collectively the "Directors") shall meet at mutually acceptable times and places to discuss and try to reach agreement to resolve the Dispute. (c) All negotiations and discussions pursuant to paragraph 1(b) are confidential and shall be treated as compromise and settlement negotiations for the purpose of any applicable rules of evidence.