Common use of Initiation of Arbitration Proceedings Clause in Contracts

Initiation of Arbitration Proceedings. (a) If any Creditor(s) (such initiating Creditor(s) being referred to as the “Claimant”) to this Agreement wishes to have any matter under this Agreement arbitrated in accordance with the provisions of this Agreement, it shall give notice to all other Creditor(s) (the “Respondent”) specifying particulars of the matter or matters in dispute and proposing the name of the person it wishes to be the single arbitrator (the “Arbitrator”). Within 5 days after receipt of such notice, the Respondent shall give notice to the Claimant advising whether the Respondent accepts the Arbitrator proposed by the Claimant. If such notice is not given within such 5 day period, the Respondent shall be deemed to have accepted the Arbitrator proposed by the Claimant. If the Creditors do not agree upon a single arbitrator within such 5 day period such arbitrator shall be chosen by the American Arbitration Association at the written request of any Creditor. (b) The individual selected as Arbitrator shall be qualified by education and experience to decide the matter in dispute. The Arbitrator shall be at arm’s length from all Creditors and shall not be a member of the audit or legal firm or firms who advise any Creditor or a person who is otherwise regularly retained by any Creditor. The Arbitrator shall provide all disclosure required by the Arbitration Rules. (c) The costs charged by the Arbitrator selected shall be shared equally among the Creditors to the arbitration on an interim basis subject to a final allocation of the costs of the arbitration by the Arbitrator.