Common use of SETTLEMENT OF DISPUTES AND GOVERNING LAW Clause in Contracts

SETTLEMENT OF DISPUTES AND GOVERNING LAW. 1. The Contractual Partners shall endeavour to settle disputes concerning the interpretation of this Agreement or disputes that are related to the execution of the Agreement through negotiation. Should negotiations fail, all disputes in relation to this Agreement concluded between the Contractual Partners shall be settled finally and without recourse to legal action by an arbitration panel through arbitration award duly applying the provisions hereinafter. 2. The arbitration panel consists of three arbitrators, one of whom acts as chairman. The chairman must be qualified to be a judge. 3. The arbitration panel is constituted by the Contractual Partner who seeks the arbitration designating the matter in dispute and nominating one arbitrator and inviting the other Contractual Partner in writing to nominate the other arbitrator and by the nominated arbitrators then selecting the chairman. If the other Contractual Partner fails to comply with the order to nominate an arbitrator within four weeks or if the arbitrators do not select their chairman within four weeks from the second arbitrator being nominated, either Contractual Partners may apply to the President of the Higher Regional Court [Oberlandesgericht] Celle to propose the second arbitrator or chairman respectively; the proposal is binding upon the Contractual Partners. 4. The place of the arbitration proceedings is Celle. 5. The competent court for the purposes of Article 1062 paragraph 1 of the Code of Civil Procedure [Zivilprozessordnung] is the Higher Regional Court [Oberlandesgericht] Celle.

SETTLEMENT OF DISPUTES AND GOVERNING LAW. 1. The Contractual Partners shall endeavour to settle disputes concerning the interpretation of this Agreement or disputes that are related to the execution of the Agreement through negotiation. Should negotiations fail, all disputes in relation to this Agreement concluded between the Contractual Partners shall be settled finally and without recourse to legal action by an arbitration panel through arbitration award duly applying the provisions hereinafter. 2. The arbitration panel consists of three arbitrators, one of whom acts as chairman. The chairman must be qualified to be a judge. 3. The arbitration panel is constituted by the Contractual Partner who seeks the arbitration designating the matter in dispute and nominating one arbitrator and inviting the other Contractual Partner in writing to nominate the other arbitrator and by the nominated arbitrators then selecting the chairman. If the other Contractual Partner fails to comply with the order to nominate an arbitrator within four weeks or if the arbitrators do not select their chairman within four weeks from the second arbitrator being nominated, either Contractual Partners may apply to the President of the Higher Regional Court [Oberlandesgericht] Celle to propose the second arbitrator or chairman respectively; the proposal is binding upon the Contractual Partners. 4. The place of the arbitration proceedings is Celle. 5. The competent court for the purposes of Article 1062 paragraph 1 of the Code of Civil Procedure [Zivilprozessordnung] is the Higher Regional Court [Oberlandesgericht] Celle. 6. Otherwise Articles 1025 to 1065 of the Code of Civil Procedure [Zivilprozessordnung] shall govern the arbitration proceedings. 7. The basis of the arbitration proceedings shall be the German wording of the Agreement, also in case the English version of the Agreement is concluded. 8. The Agreement, its interpretation as well as its execution shall be governed by the laws of Germany. Intergovernmental agreements – as far as legally allowed - shall not apply even it they are transposed into German law.