The proceedings regarding the dispute between the parties will be conducted within the framework of the Israeli Institute of Commercial Arbitration, according to the arbitration rules of the institute together with the changes specified below in this document:
- Before the start of the arbitration proceedings, the parties will be offered a mediation process within the framework of the Commercial Arbitration Institute, with an explanation of the nature of the process. In the event that there is no consent for a mediation process – or where the parties do not reach agreement in the mediation – an arbitrator will be appointed to settle the dispute. The arbitrator will be chosen by the parties, and, in the absence of agreement regarding the identity of the arbitrator, the arbitrator will be appointed by the President of the Commercial Arbitration Institute from the list of arbitrators attached to this agreement.
- The arbitrator will be entitled to appoint an expert from the list of experts attached to this agreement or another expert as required, after consultation with the parties. The Israeli Hi-Tech Association will provide a list of experts and it will work with the Innovation Authority to provide and update the list of experts from time to time. The arbitrator will be entitled to appoint such an expert, either as a consultant or for the purpose of rendering a professional opinion. The costs of the expert will be borne equally by the parties.
- Upon the appointment of the arbitrator, a preliminary meeting will be scheduled immediately, in which the arbitrator will determine the schedules and dates for conducting the arbitration. Another preliminary meeting will be held within 30 days after the date of filing the last pleadings, when consecutive dates will be set for the hearing of the evidence within 6 months of the date of the meeting. Each party will be able to request up to two postponements of the hearing during the arbitration proceedings, without this deviating from the time schedule set for completing the arbitration. The parties hereby express their desire to adhere strictly to the time schedule, including the dismissal of motions for extensions of time, which, in the arbitrator’s opinion, do not present a special reason for postponement. Arbitration will not continue for more than a year from the date of filing the last pleadings until the rendering of the arbitral award, except in exceptional and extraordinary cases, as determined by the arbitrator with the approval of the President of the Arbitration Institute.
- The parties undertake to act courteously and with mutual respect. The parties confer authority on the arbitrator to impose costs on one of the parties or his legal counsel in the event that the arbitrator finds that the party has acted dishonorably or that he has interfered in another way with the hearings, and this after giving that party notice of this. The costs mentioned in this section will be included as part of the arbitral award.
The wording of an arbitration clause is proposed in the agreements of the members of the Israeli Hi-Tech Association: “Any dispute in connection with this agreement will be submitted to arbitration at the Israeli Institute of Commercial Arbitration, and it will be conducted according to the rules of arbitration in the hi-tech industry”.