THE CHINA INTERNATIONAL ECONOMIC AND TRADE ARBITRATION COMMISSION, CHINA MARITIME ARBITRATION COMMSSION AND THE ITALIAN ARBITRATION ASSOCIATION (the “Parties”)

Preamble

1. Bearing in mind that the above mentioned Arbitral Institutions (the “Parties”) on May 16, 1981, in Beijing, signed an Arbitration Cooperation Agreement;
2. Taking into account that both China and Italy are parties to the New York arbitration converntion of June 10, 1958;
3. Taking also into account the growth and diversification of Sino-Italian economic developments including the field of investments, based also on joint-venture projects, involving sometimes the participation of business interests originating from more countries;
4. Considering that along with the rapid growth of international arbitration, both the Chinese and Italian legal systems have been modernized, consenting also the use of video-phone conferences and other kind of telematic instrumentalities in arbitration proceedings;
5. Considering furthermore that the Rules of Arbitration of the Parties have undergone a process of profound liberalination and improvement and have taken account of the basic principles recognized in international treaties and in international arbitration practices, giving a prominent relevance to the autonomy of the parties, subject to the observance of the law provisions in matter of public order;
6. Considering also that the Parties wish to increase and widen the exchange of information and mutual assistance in order to render more efficient the services to the respective Chinese and Italian users of conciliation and arbitration;

The Parties (the CIETAC, THE CMAC and the AIA) have decided to update and improve the 1981 agreement and after friendly negotiation HAVE ENTERED INTO THE FOLLOWING NEW ARBITRATION COOPERATION AGREEMENT on the basis of equality and mutual benefit:

Article 1-Conciliation and arbitration clauses
The Parties agree to support and encourage natural and legal persons engaged in Sino-Italian economic trade activities and carriage of goods by sea and waters, in their efforts to settle differences which may have arisen or may arise among them both during the negotiations to stipulate a contract and, thereafter, in the performance of the contract or in respect of a defined non contractual legal relationship from which differences have arisen or may arise.
For the above purposes, the Parties shall recommend to Chinese and Italian natural and legal persons the following conciliaction and arbitration clauses to be inserted in a contract or in a document making express reference to a contract or to a defined non contractual legal relationship, from which differences have arisen or may arise in future and aimed at settling differences concerning also the pre-contractual phase of the business relationships between the disputing parties.

Conciliation clause
“In case of differences arisen or which may arise out in future from, or in connection with this contract or from the non contractual specific relationship referred to in this contract or in a separate document, the parties will try and reach a settlement through friendly negotiations.
If no settlement can be reached within a period of 45 days from the written notice from either party, stating the willingness to reach a friendly settlement, either of the parties may start arbitration according the following clause.”
Arbitration clause
“A) Applicable Arbitration Rules- All disputes between the parties arising out of the present contract/document shall be finally settled according to the Arbitrarion Rules of the CIETAC or of the CMAC, as the case may be, if the respondent is a Chinese national, or according to the Arbitration Rules of the ALA, if the respondent is an Italian national.
A-i) Place of arbitration – Unless otherwise agreed, the place of arbitration will be: in Beijing, if the respondent has its residence or is incorporated in the People’s Republic of China; in Rome, if the respondent has its residence or is incorporated in Italy.
A-ii) Language of the proceedings – Unless otherwise agreed, the language of the arbitration proceedings shall be English.
A-iii) Constitution of the arbitral tribunal – Unless otherwise agreed – and this also in the case there are more claimants or mor respondents or both, possibly of different nationality on one or on both sides – the arbitral tribunal shall be composed of a sole arbitrator or of a board composed of the chairman and of two co-arbitrators.
In case of disagreement between the disputing parties as to the choice between a sole arbitrator and a board, the solution for the disputing parties shall be the appointment of the full board.
The disputing parties, in choosing the arbitrators, may take advantage of may common panel of arbitrators created by the Parties（under art, 2 of the CIETAC, CMAC/AIA Cooperation Arbitration Agreement entered into force on January 1st 2006）but can freely choose any other person.
Failing the disputing parties to jointly choose the sole arbitrator or to set up the 3-member arbitraal tribunal, the competent Arbitral Institution of the Country of the respondent(s) shall proceed according to its own rules to issue the necessary instructions to the disputing parties and eventually proceed itself to the necessary appointments, in order to set up the appropriate arbitral tribunal.
A-iv) Binding force of the award – The arbitral award rendered according to the above will be final and binding and shall be deemed to be made at the place of arbitration and on the date stated therein.”

Article 2 - Common panels of arbitrators
The Parties may recommend to each other arbitrators having the appropriate requirement, for the insertion in common panels.

Article 3 – Information on arbitration in general and on the recognition and enforcement of arbitral awards
The Parties, when necessary, may send delegations to each other for exchange of arbitration theory and practice.
At the request of one Party, the other Counterpart/ies to this Agreement shall provide all useful information and material concerning the recogntion and enforcement of arbitral awards in its Country in accordance with the United Nations Convention of 1958 on Recognition and Enforcement of Foreign Arbitral Awards.

Article 4 – Information on commercial and maritime legistation
The Parties agree to exchange with each other all useful information and material on commercial and maritime legislation as well as on the activities of the relevant Party in the respective country.

Article 5 – Cooperation in international commercial and maritime arbitration
The Parties agree to make a wide use of their respective potentials in international commercial and maritime arbitration with an aim of increasing cooperation in that field.

Article 6 – Facilities and administrative services
The Parties agree to provide each other, upon request, with the facilities or administrative services necessary for conducting arbitrations; the costs incurred shall be borne by the Party which makes the request.

Article 7 – Entering into force
This Agreement becomes effective as from January 1st 2006. Any Party to this Agreement shall inform the other Parties on year in advance of its decision to terminate this Agreement.
This Agreement has been signed in Beijing, respectively in Rome, on the 23rd of December 2005, in two originals, each available in Chinese, Italian and English. The Chinese and Italian texts are equally authentic and the English text is for the purpose of reference only.

Article 8 – Termination of the 1981 Agreement
The 1981 Arbitration Cooperation Agreement between the Foreign Economic and Trade Arbitration Commission of the China Council for the Promotion of International Trade, China Maritime Arbitration Commission of the China Council for the Promotion of International Trade and the Italian Arbitration Association is terminated at the moment this Agrerment takes effect.

Signed 　　　　　　　　　　　　　　　　　　　　　　　　　　　Signed

Vice Chairman of CIETAC/CMAC　　　　　　　　　　　　　　　　 Chairman
ON BEHALF OF　　　　　　　　　　　　　　　　　　　　　　　　 ON BEHALF OF
CHINA INTERNATIONAL ECONOMIC　　　　　　　　　　　　　　　　ITALIAN ARBITRATION
AND TRADE ARBITRATION COMMISSION　　　　　　　　　　　　　　ASSOCIATION
CHINA MARITIME ARBITRATION
COMMISSION