THE RULES OF SIMPLIFIED ARBITRATION OF TOMAC

[SIMPLIFIED RULES]

Article 1. [Definition]

Simplified Arbitration in the present Rules shall mean arbitration which is performed with speed and simplicity, regarding a dispute over a claim not exceeding Twenty Million Yen (¥20,000,000), under the present Rules in place of the Ordinary Rules of TOMAC, by agreement between both parties.

Article 2. [Relation between the present Rules and the Ordinary Rules]

All matters which are not covered by the present Rules shall be governed by the Ordinary Rules. In the event of a conflict between the two sets of Rules, the present Rules shall prevail over the Ordinary Rules to the extent of such conflict.

Article 3. [Application for Simplified Arbitration]

Any party wishing to apply for Simplified Arbitration under the present Rules (hereinafter referred to as "the Claimant"), shall file with the Secretariat the documents stipulated in Article 5 of the Ordinary Rules. The Statement of Claim shall be marked with the note to specify that the application is for Simplified Arbitration.

Article 4. [Acceptance of Application for Simplified Arbitration]

When the Secretariat acknowledges that the application complies with the requirements of the preceding Article, it shall accept the application.

Article 5. [Filing of Defense and Supplementary Statement in Simplified Arbitration]

(1) When the Secretariat has accepted the application for Simplified Arbitration, it shall forward to the other party (hereinafter referred to as "the Respondent") a copy of the Statement of Claim in Simplified Arbitration together with the respective copies of the documentary evidence submitted, and shall instruct the Respondent to send to the Secretariat and the Claimant respectively the Defense in Simplified Arbitration and any supporting evidence within 15 days from the day of receipt of such instruction.
(2) Where there is no document evidencing the agreement to refer a dispute to arbitration under these Rules, the Secretariat shall forward to the Respondent, together with those documents specified in the preceding paragraph, a notice in writing to the effect that TOMAC shall proceed with the Simplified Arbitration unless the Respondent submits an objection in writing thereto within the period stipulated in the preceding paragraph. Where the Respondent has not submitted an objection in writing within the said period, the Respondent shall be deemed to have confirmed that the dispute should be submitted to the Simplified Arbitration under these Rules.
(3) When the Claimant has received the Defense and documentary evidence, if any, the Claimant shall, if it has any objection to the Defense, send its Supplementary Statement and further documentary evidence, if any, to the Secretariat and the Respondent respectively so that such Supplementary Statement and further documentary evidence, if any, are received within 10 days from the day of receipt by the Claimant of the Defense and documentary evidence, if any.
(4) If the Respondent has any objection to the Supplementary Statement provided in the preceding paragraph, it shall send its Supplementary Statement and further documentary evidence, if any, to the Secretariat and the Claimant respectively so that such Supplementary Statement and further documentary evidence, if any, are received within 10 days from the day of receipt by Respondent of the Supplementary Statement provided for in the preceding paragraph.

Article 6. [Counterclaim by Respondent]

(1) If the Respondent wishes to apply for Simplified Arbitration of a counterclaim arising out of the same cause or matter, it must do so within the period stipulated in paragraph (1) of the preceding Article.
(2) When such an application is made within the period stipulated, Simplified Arbitration of such counterclaim shall, in principle, be performed concurrently with the Simplified Arbitration applied for by the Claimant.

Article 7. [Appointment of Arbitrators]

TOMAC shall, within 10 days from the day when the Respondent's Defense was filed or should have been filed, whichever is earlier, appoint an uneven number of arbitrators or a sole arbitrator from the persons listed on the Panel of TOMAC Arbitrators who have no connection with either of the parties or with the matter in dispute.

Article 8. [Oral Hearings]

The Tribunal shall hold oral hearings, if any, within 35 days from the day when the Supplementary Statement under Article 5(4) was filed or should have been filed, whichever is sooner, unless prevented by special circumstances.

Article 9. [Settlement]

The Tribunal may attempt to settle the dispute within 30 days of commencement thereof.

Article 10. [Description of Items in the Award]

In the Simplified Arbitration Award, items 3 and 4 of Article 37(1) of the Ordinary Rules shall be fully satisfied by as brief a description as practicable of the matters referred to therein.

Article 11. [Costs of Simplified Arbitration]

(1) The Claimant shall, when applying for Simplified Arbitration, pay to the Secretariat a Filing Fee of One Hundred Thousand Yen (¥100,000). This provision shall also apply where an application for Simplified Arbitration of a counterclaim is filed.
(2) Each party shall, within seven (7) days after the receipt of notice from the Secretariat, pay to the Secretariat the fee (hereinafter referred to as "the Arbitration Fee") which the Tribunal shall determine in accordance with the Tariff of Fees for Simplified Arbitration.
(3) If the Respondent applies for Simplified Arbitration of a counterclaim arising out of the same cause or matter and the Tribunal considers that such Simplified Arbitration can be performed concurrently with the Claimant's application, the amounts claimed and counterclaimed respectively shall be aggregated and the aggregate sum shall be taken as the amount of claim in the Tariff of Fees for Simplified Arbitration.
(4) Each party shall pay the consumption tax imposed on the amount of the each fee as provided in the preceding paragraphs (1) through (3).

The amount of the Simplified Arbitration Fee to be paid by each party shall be as follows:

When the amount of claim is ¥ 10,000,000 or less,

the fee to be paid is ¥ 300,000;

When the amount of claim exceeds ¥ 10,000,000, but does not exceed ¥ 20,000,000,

the fee to be paid is ¥ 350,000;

When the amount of claim exceeds ¥ 20,000,000,

the fee to be paid is the amount equal to 90% of the fee determined in accordance with the Tariff of Fees for Ordinary Arbitration.