Regulations of the Chamber of Commerce and Industries of Tegucigalpa

The Center for Conciliation and Arbitration is organized on the basis of the powers and authorities that the Conciliation and Arbitration Law and the internal regulations grant to the Chamber of Commerce and Industry of Tegucigalpa (CCIT). The Center is a division of the Chamber of Commerce and Industry of Tegucigalpa that does not resolve disputes by itself but rather administers dispute resolution processes such as arbitration and conciliation, in accordance with the Conciliation and Arbitration Law and this Regulation.

The Center has the following functions:

• a)

  To administer conciliations and arbitrations, both national and international, when so requested, providing advice and assistance in accordance with the procedure established in this Regulation.

• b)

  To appoint conciliators and arbitrators as appropriate.

• c)

  To maintain lists of conciliators and arbitrators affiliated with the Center, which must include a sufficient number of experts to allow the provision of services in an agile and effective manner.

• d)

  To maintain the list of Arbitral Tribunal secretaries, experts in the technical management of the secretariat and the arbitral process.

• e)

  To maintain lists of experts by specialty, to serve as technical support to the Arbitral Tribunal.

• f)

  To promote the use of conciliation and arbitration as alternative methods for conflict resolution and to pursue the permanent development and improvement thereof.

• g)

  To process inquiries and issue opinions requested, related to conciliation and arbitration.

• h)

  To design training programs for conciliators, arbitrators and Arbitral Tribunal secretaries, either directly or with other institutions, national or international.

• i)

  To develop the programs designed or those agreed in agreements with other centers for conciliation and arbitration, universities and in general with similar entities, national or international.

• j)

  To maintain statistics that allow for understanding the quantitative and qualitative development of alternative methods of conflict resolution.

• k)

  To conduct analyses and studies on alternative methods of conflict resolution, at the national and international level.

• l)

  To promote the conclusion of agreements aimed at strengthening relationships with similar bodies and institutions, national or international, to maintain a permanent network of collaboration that results in the development and promotion of alternative methods of conflict resolution.

• m)

  To maintain a schedule of administrative expenses of the Center and fees for conciliators, arbitrators and Arbitral Tribunal secretaries; as well as any other service offered.

• n)

  To administer any other alternative method of conflict resolution, develop the procedure if necessary, and the respective training plan. o) To administer arbitrations complying with the procedures established by the parties, even in Ad-hoc processes. p) Any other function that develops and improves the foregoing, in accordance with the Law.

The Arbitration Commission is the advisory, consultative and disciplinary body of the Center for Conciliation and Arbitration of the Chamber of Commerce and Industry of Tegucigalpa, responsible for fulfilling the functions provided in this Regulation. It is composed of three principal members and three alternate members, who shall be elected annually by the Board of Directors of the CCIT, taking into account their affinity with the subject of alternative methods of conflict resolution and in accordance with the internal regulations of the CCIT. Two of its members must be legal professionals with experience in alternative methods of conflict resolution. The Board of Directors, at the time of election, shall designate the President of the Commission.

The functions of the Arbitration Commission are the following: a. To ensure that the regulations of the Center are complied with and that services are provided applying the ethical principles of the Center, in an efficient manner, in accordance with the law and this Regulation. b. To approve or disapprove applications to be included in the lists of conciliators, arbitrators, secretaries and experts. c. To review violations committed by arbitrators, secretaries of arbitral tribunals, conciliators, and to decide whether sanctions are appropriate. d. To exclude from the Center's lists, for just cause, conciliators, arbitrators, secretaries and experts, when applicable. e. To serve as an advisory body to the Director of the Center, to whom it shall indicate the policies and general guidelines to follow. f. To resolve recusations of arbitrators, including matters related to conflicts of interest and similar matters. g. To approve the administration of procedures other than those provided in this Regulation. h. To appoint principal and alternate arbitrators according to the specialties and experience for processes that require it, using the procedure established by the Commission itself.

The term of the members of the Arbitration Commission shall be one year. Nevertheless, they shall continue in their positions if they are not replaced at the end of the respective term and until such replacement occurs.

The sessions of the Arbitration Commission shall be confidential, unless the majority of members present in the respective session agrees otherwise, which must be noted in the corresponding minutes.

The Arbitration Commission may delegate to one or more of its members the study and decision of a specific matter.

The members of the Arbitration Commission, principal or alternate, are ineligible or shall be deemed unable:

• a)

  To be appointed as arbitrators, when the appointment corresponds to the CCIT.

• b)

  To participate in sessions of the Arbitration Commission when they have an interest in a matter or dispute submitted to arbitration. In this case, the remaining members of the Arbitration Commission shall call upon an alternate member.

• c)

  When they consider it their ethical duty not to perform their functions with respect to a specific matter.

The Center for Conciliation and Arbitration shall have a Director responsible for the execution of the center's policies and procedures; an expert in the management of the techniques, procedures and services provided by the Center. The Director shall be appointed by the Arbitration Commission, in accordance with the internal procedures of the Chamber of Commerce and Industry of Tegucigalpa.

The Director shall exercise the following functions: a. To ensure and intervene so that the provision of services by the Center is efficient and in compliance with the law, the regulation and framed within the principles of the Center's ethics. b. To act as Secretary of the Arbitration Commission, for which purpose he/she shall attend the sessions of the Arbitration Commission with voice but without vote. c. To act as Conciliator, prior to the formation of an Arbitral Tribunal or at any time during the arbitration proceedings at the request of the parties. In these cases, the Center may delegate the conciliation functions of the Director to a Conciliator on the Center's list, at its sole discretion. d. To verify that applicants to be included in the lists of conciliators, arbitrators, Arbitral Tribunal secretaries and experts, meet the requirements established therefore. e. To resolve matters of recusation of conciliators. f. To maintain current the personal and professional data of those who are included in the lists of conciliators, arbitrators, experts and Arbitral Tribunal secretaries with their respective curricula vitae. g. To personally execute the functions of Center administration, in accordance with the policies and general guidelines that the Arbitration Commission shall establish in order to achieve the proposed objectives. h. To timely submit to the consideration of the Arbitration Commission the names of persons who request to be enrolled in the lists of conciliators, arbitrators, experts and Arbitral Tribunal secretaries. i. To issue certificates and certifications that attest to the status of conciliators, arbitrators, experts and Arbitral Tribunal secretaries of the Center. j. To issue authentic copies of arbitral proceedings, once concluded. k. To propose to the Arbitration Commission changes in the management of the Center, when he/she deems it advisable or necessary. l. To manage the public relations of the Center, personally or through an official designated for such purpose. m. To enter into, with prior authorization of the Arbitration Commission, interinstitutional agreements. n. To promote alternative methods of conflict resolution and to respond to inquiries submitted to him/her. o. In general, to perform all functions inherent to the position and to execute all actions aimed at improving the services provided by the Center and its image.

The Arbitration Commission may appoint an Assistant Director, who shall act as Director during temporary or permanent absences of the Director, until such time as a new Director is designated, and shall be responsible for the activities assigned or delegated by the Director. The hiring shall be in accordance with the internal procedures of the Chamber of Commerce and Industry of Tegucigalpa.

The Center shall maintain official lists of conciliators, arbitrators, and Arbitral Tribunal secretaries, without prejudice to maintaining lists of experts or others that it deems pertinent according to the subject matter. The official lists of the Center shall include a number of members sufficient to provide services in an agile and effective manner. The same person may simultaneously be on the list of conciliators, arbitrators, experts, and Arbitral Tribunal secretaries, but whoever, in accordance with Article 25 of this Regulation, is excluded or suspended from one of them, shall automatically be excluded or suspended from the others. Once a person is selected as a conciliator, arbitrator, expert or secretary, he or she is not disqualified from being selected from the other lists of which he or she is a member, except in those cases related to the dispute and subject matter for which he or she has already acted as a conciliator, arbitrator, expert or secretary.

The official lists of the Center shall be prepared and maintained up to date, in accordance with the following rules: To be included in any of the lists, the interested party must submit to the Director of the Center a written application, accompanied by a curriculum vitae and documents that attest to compliance with the legal and regulatory requirements to exercise the functions. The Director shall verify that the formal requirements are met and, having been complied with, shall present the name of the applicant for consideration by the Arbitration Commission so that it may make a final decision on the registration request.

Once the respective application for admission is approved, the admitted person must execute an agreement letter with the institution, by virtue of which the applicant undertakes the formal commitment to perform his or her function in a diligent and effective manner, complying with the policies and regulations of the Center. Persons already on the lists of arbitrators, secretaries, conciliators or any other, upon the entry into force of this Regulation must likewise execute this agreement, within the term established by the Center, in order to continue to be part of said lists.

In order to act as a conciliator of the Center for Conciliation and Arbitration of the Chamber of Commerce and Industry of Tegucigalpa, the following requirements must be met and the following characteristics must be demonstrated: a. To be a university-educated professional. b. To have a clear sense of justice. c. To believe in conciliation as a means to resolve conflicts. d. To possess broad conscience and sensitivity, in accordance with the humanistic function performed. e. To have the capacity to continuously review and update one's personal paradigm, to adapt attitudes, positions and beliefs in favor of conciliation. f. To be an agent of cultural change that contributes to the transition from a litigious culture to a culture of peaceful coexistence. g. To have the capacity to give real and practical meaning to civic values that characterize democracy and pluralism: solidarity, dialogue, respect, individual freedoms and the common good. h. To know the ethical principles that govern the Center, to have the attitudes that facilitate their practice and to abide by the regulations. i. To be trained, in accordance with the Center's requirements, in the management of negotiation and conciliation techniques. j. Not to be disqualified from exercising one's political or civil rights. k. To remain updated in knowledge about conciliation. l. To prove that as of the date of application he or she has not been subject to criminal or disciplinary sanction; and, m. To meet the other requirements that the law and regulation require or those that the Arbitration Commission may consider.

PROFILE TO BE AN ARBITRATOR: Those who aspire to be included in the list of arbitrators of the Conciliation and Arbitration Center of the Chamber of Commerce and Industry of Tegucigalpa shall meet the following requirements, without prejudice to any others that the Arbitration Commission may consider:

• a)

  To previously know the ethical principles that govern the Center, to have the attitudes that facilitate their practice and to comply with the regulations.

• b)

  To be a legal professional and to be legally incorporated into the Bar Association of Honduras, in order to be part of those arbitral tribunals that must rule in accordance with law.

• c)

  To be a professional expert in the corresponding technique, in order to be part of those arbitral tribunals that must rule in accordance with the technical knowledge relating to the matter submitted to arbitration.

• d)

  Professional practice of no less than three (3) years to arbitrate disputes of lesser amount and no less than six (6) years to arbitrate matters of greater amount.

• e)

  To have attended and passed the training course on the subject required by the Conciliation and Arbitration Center of the CCIT.

SECRETARIES OF ARBITRAL TRIBUNAL: The Arbitral Tribunal of the Conciliation and Arbitration Center of the CCIT shall appoint a secretary from the official list of the Center, who shall provide legal and technical support to the Tribunal and shall have the functions of technical guidance of the process and management of the file.

PROFILE TO BE SECRETARY OF ARBITRAL TRIBUNAL: In order to be included in the list of secretaries of Arbitral Tribunal and to exercise these functions, the following requirements must be met:

• a)

  To know the ethical principles that govern the Center, to have the attitudes that facilitate their practice and to comply with the regulations.

• b)

  Must be a legal professional, be incorporated into the Bar Association of Honduras and know the technique of managing the arbitral process.

• c)

  To have attended and passed the training course on the subject required by the Conciliation and Arbitration Center of the CCIT.

OBLIGATIONS: The persons subject to this Regulation shall comply with the following obligations, according to their position and functions, without prejudice to the others contained in other sections of this regulation and the Law: 1. To comply with and respect the guiding principles of the Center, as well as its objective. 2. To develop the functions and duties contained in all applicable current regulations applicable to their respective functions. 3. To exercise their functions with full compliance with professional ethics and the guidelines established by law and by the Center. 4. To report to the competent authorities and to inform the Center of any conduct that, according to this regulation or the law, is subject to discipline. 5. To process arbitration, conciliation and similar proceedings in accordance with the procedures established by current legislation and by the Center. 6. To dedicate to the attention and study of the case all the time that it reasonably requires. 7. To perform the necessary acts to avoid invalidity of the action and, if the case arises, to remedy those that may have occurred. 8. To adhere to the principle of good faith in their actions. 9. To comply with all rules related to disqualifications, incompatibilities, conflicts of interest and duty of information, as applicable to the nature of the functions and position, and to inform whomever corresponds of any situation that may cast doubt on their impartiality and independence. 10. To treat with respect, courtesy, impartiality and rectitude the representatives, the parties and in general, all persons with whom they have a relationship by reason of the service. 11. To be punctual and responsible in managing the schedules established for the different hearings, arriving in advance for the purpose of having ready everything that is required and to begin the action exactly at the scheduled time. 12. To grant to any legally interested person in a proceeding, or to that person's attorney, the full right to be heard in accordance with the law. 13. To refrain from committing acts in the facilities of the Center that violate morality or good customs. 14. To guarantee adequate custody and preservation of both the file containing the procedural actions and all other elements related to the process. 15. To notify the parties or their representatives, as applicable, of each hearing or meeting, with sufficient advance notice and in the manner indicated by the law or by the Center's procedures. 16. To update and train themselves on topics of both alternative dispute resolution methods and the specialty to which they belong, attending conferences, roundtables, internships, training sessions, seminars and in general, any academic activities programmed by the Center. 17. To provide disinterested collaboration to the Center in the event that it requires it, and conditions permit. 18. To train and update themselves in the use of computer systems, in order to manage, at a minimum, the basic elements of the main software programs (Word, Excel, internet, etc.). 19. To train and make proper use of the information systems offered by the center in order to provide better service. 20. To inform the Center in writing of the acceptance or withdrawal from a public office, for the purpose of being temporarily suspended or reinstated on the lists. 21. To look after the interests of the Center, being loyal to the institution and acting in a manner that helps achieve its permanence and development. 22. To fully comply with the current regulations on the matter and with the professional and ethical duties of the respective profession. 23. In general, to comply with any other obligation that the Center establishes in accordance with the Law and this Regulation.

INFRACTIONS: An infraction consists of the non-compliance with the obligations established in the Law, in this Regulation and other norms of the Center, such as the following: 1. To fail to comply with the requirements of law, regulations and ethical principles of the Center. 2. To fail to accept the appointment made by the institution to attend a particular case or to fail to appear at a hearing, except in cases of force majeure, act of God or justified excuse. 3. When sanctioned penally or disciplinarily or incurs in ethical faults that damage their image or that of the Center, provided that this fact is duly accredited to the Center. Sanctions for negligent criminal offenses are excepted. 4. To fail to participate in at least one of the free dissemination or promotion activities of the Center, programmed annually. 5. To fail to comply with the deadlines established in this Regulation. 6. To provide inaccurate or false information, or to omit relevant information. 7. To repeatedly fail to participate in academic activities coordinated or directed by the Center.

SANCTIONS: Depending on the severity of the infraction, one of the following sanctions may be imposed on the responsible party: 1. Private Reprimand: A confidential warning contained in a written document signed by the Director, which shall be filed in the professional's record to whom it is addressed. 2. Suspension: The temporary removal from the list of professionals to which they belong. The suspension shall have a minimum duration of three (3) months and a maximum of six (6) months, after which they shall be considered again as an eligible professional by the Center. 3. Exclusion: The permanent separation from the lists of the Center. Exclusion brings with it the impossibility of being part of or re-entering any of the official lists of the Center. The professional who has been excluded or suspended from the lists of the Center, applying numerals 2 and 3 of this article, may also not be chosen by the parties to exercise functions as arbitrator, conciliator or secretary, in the proceedings administered by the Center.

PROCEDURE AND APPLICATION OF SANCTIONS: 1. The process may be initiated by written request of any natural or legal person, presented at the facilities of the Center. 2. The Director shall inform the professional of the fact being investigated so that they may present in writing their version of the facts, providing the pertinent explanations or their acceptance of the same, within ten (10) business days following receipt of the communication informing them of the disciplinary process. If they fail to do so within the aforementioned period, it shall be understood that they accept the facts and the respective sanction shall be imposed, if applicable. The result of the investigation shall be submitted to the Arbitration Commission, which shall decide the sanction applicable to the specific case. 3. The person against whom the sanctioning procedure is initiated shall have the right to know all the proceedings, to request copies of the file containing it, to exercise their right of defense, by submitting written responses and providing the evidence they deem appropriate or requesting the practice of evidence not in their possession. They may also designate a representative and may know the content of the decisions. 4. The sanctions shall be executed by the Director, following what has been decided by the Arbitration Commission. 5. The sanction must be reasoned and based on the evidence collected in the procedure. 6. Against the resolution of the Arbitration Commission in which sanctions are imposed, no appeal may be filed.

INFRACTIONS THAT MERIT PRIVATE REPRIMAND: The following conduct may result in private reprimand: 1. To refuse to accept cases assigned to them without impediment or valid excuse. 2. To fail to comply with the scheduled times for hearings or meetings. 3. To fail to prepare hearings with due advance notice and depth. 4. To fail to comply with the procedures established by the Center. 5. To be absent, without valid written excuse, from training programs scheduled by the Center. 6. To use inappropriate vocabulary to any human dignity, that is, to use improper language or offensive or vulgar words to refer to a party, their representative or any other professional or employee of the Center. 7. To fail to update personal data and information filed with the Center, whether by updating requested by the Center or by changes that may affect the service. 8. To schedule hearings outside of business hours, unless expressly authorized by the Center. 9. To fail to ensure adequate custody and preservation of both the file containing the procedural actions and all other elements related to the process. 10. To fail to promptly inform the Center of any situation that may jeopardize the success of the proceedings or the reputation of the Center, its collaborators or the Alternative Dispute Resolution Mechanisms.

INFRACTIONS THAT MERIT SUSPENSION: The following conduct may result in suspension: 1. To incur a second infraction that results in written reprimand. 2. To inadequately manage the resources under their custody, or to fail to deposit them promptly with the appropriate person. 3. To violate the duties of confidentiality established in this Regulation and the Law. 4. To fail to comply with the duties related to disqualifications, conflicts of interest, duty of information and, in general, those duties related to independence and impartiality. 5. To withdraw from the proceedings, without just cause, once accepted. 6. To exercise any type of pressure or lobbying with a party or with the Center to be appointed in a proceeding as arbitrator, secretary, conciliator or similar.

INFRACTIONS THAT MERIT EXCLUSION FROM PROFESSIONAL LISTS: The following conduct may result in exclusion: 1. To have been sanctioned with suspension on two (2) or more occasions for the same or different reason. 2. To have been sanctioned by the Honor Court of the Bar Association of Honduras or by any other entity or authority, for violation of their duties as a professional or for penal or disciplinary infractions. 3. To participate in a proceeding knowing that they are or may be in a possible conflict of interest or in a disqualification or ground for impediment that prevents them from acting with impartiality or independence with respect to the parties or their representatives. For this purpose, the actions taken by the professional to identify such situation shall be verified. 4. To have seriously violated the Rules and Ethical Principles of the CCA-CCIT.

VALIDITY OF INCORPORATION: The official lists of the Center shall be reviewed by the Arbitration Commission and shall be renewed every three (3) years, after which the Arbitration Commission shall renew or not the inscription. For this purpose, the Center shall send a communication requesting the pertinent documents to carry out the renewal, for which a period of 30 calendar days shall be given. Against the decision of the Arbitration Commission through which the renewal or non-renewal of the inscription is resolved, no appeal shall lie.

CONFIDENTIALITY: Conciliation and arbitration shall be confidential, so the right to privacy and good name that users of the processes and procedures carried out in the Center possess shall be protected. However, for academic and statistical purposes, with the express written authorization of both parties and excluding their names, the Center may compile the awards and decisions that are produced in the arbitral trials submitted to the Center. In light of this principle, the parties involved in an action or proceeding related to any function provided for in this Regulation must not at any time or under any circumstance use confidential information acquired during the action. The duty of confidentiality is not violated when it is necessary to present information about deliberations or actions to defend oneself from any imputation in the framework of a regulatory, disciplinary or jurisdictional sanctioning process of any kind brought against them, and this information may only be presented before the body conducting the investigation, whether it is a competent authority or the Court. In no case may this information be presented to the parties or to third parties different from the aforementioned entities. There is also no violation of the duty of confidentiality when the parties, by mutual agreement, in writing and expressly, authorize access to the information. In no case may conciliators reveal anything about what happened in conciliation hearings, nor even in the cases established in the preceding paragraph.

ACCEPTANCE OF THE REGULATION: By the simple filing of the application for incorporation into any of the lists of the Center, it is understood that the applicant has read and accepts the content of this Regulation and undertakes to comply with it and to ensure its compliance in the exercise of their functions; likewise, it is understood that they commit to exercise their office in strict adherence to the Conciliation and Arbitration Law and the ethical principles of the Center. Acceptance also includes that of the fees set in the current Fee Schedule, and payment guidelines.

GENERAL FUNCTION: The Center shall carry out, in accordance with this Regulation, the conciliation procedure to promote the resolution of conflicts in disputes whose resolution is deferred to it and the law permits to be resolved by this mechanism.

REQUEST FOR CONCILIATION: The request to obtain the conciliation services of the Center shall be directed in writing to the Director, either by one or several parties, directly or through an attorney expressly empowered to request, attend the conciliation and conciliate, if applicable. The request shall contain: a. Name, address, physical address, email address, telephone number of the applicant and of their representatives or proxies when applicable. b. Name, address and address of the eventual respondent and of their representatives or proxies when applicable. c. A brief description of the conflict. d. The rational estimate of the amount or the statement of lacking a determined value. e. The documents that are considered relevant for the better development of the conciliation process and that have a direct relationship with the conflict. f. The receipt that certifies the full payment of administrative expenses in favor of the CCIT and of the conciliator's fees.

PROCEDURE: Upon receipt of the request to obtain the Center's conciliation services and acceptance thereof, the Director shall appoint the conciliator within the three (3) business days following, in the manner provided for in this Regulation. The conciliator and the parties shall be cited by means of communication sent to the address registered in the request, by any efficient means, indicating the place, date, and time at which the hearing shall take place. The provisions of subsections a) and b) of Article 43 of this Regulation, which refers to Time Limits, shall be applicable to conciliation processes.

APPOINTMENT OF THE CONCILIATOR: The appointment of the conciliator who is to attend the hearing in each case shall be made by the Director in a rotating manner, among the experts who comprise the list of conciliators. In accordance with Articles 2, 14, 15, and 16 of the Conciliation and Arbitration Law, the parties may, by mutual agreement, appoint the conciliator, provided that such conciliator is included in the official list of conciliators of the Center.

DISQUALIFICATION AND RECUSAL OF THE CONCILIATOR: The conciliator shall have the same grounds for disqualification and may be recused for the same grounds established for arbitrators. If the appointed conciliator considers that there exists some ground for disqualification to act as such, without waiting to be recused, within the period of three (3) business days, the conciliator shall communicate this in writing to the Director, who within the same period shall resolve what is appropriate. Recusal shall be raised in writing before the Director within a period not exceeding three (3) days after having received the notice of appointment or for grounds that arise after such appointment. The Director shall notify the conciliator so that within the period of three (3) days the conciliator may manifest, also in writing, whether the conciliator accepts or rejects the recusal, justifying the pronouncement and, if applicable, providing evidence as required. Upon receipt of the conciliator's pronouncement, the Director shall have three (3) days to decide on the recusal. Against the decision of the Director, no appeal shall lie.

PERSONAL APPEARANCE: The parties must appear personally at the conciliation hearing, and in the case of legal entities, by means of their legal representatives accompanied or not by their legal representatives. In the event that the parties appear with their legal representatives, these may be present at the hearing and provide advice to their clients, but shall not intervene directly; except when the conciliator deems it convenient and appropriate. In the event that the parties cannot attend personally, they must be represented by representatives duly empowered expressly and in writing to conciliate.

CONCILIATION HEARING: The Conciliator shall conduct the hearing in accordance with the established parameters and shall take into account the following aspects: a. Shall reaffirm to the parties the confidentiality and submission to the normative framework of the Center for the conciliation process. b. Shall act with equity, celerity, transparency, and impartiality, ensuring that the parties understand clearly that the conciliator's sole interest is to assist them impartially so that they may reach self-resolution of their conflict. c. Shall clarify the steps or rules that the parties shall respect during the course of the hearing. d. Once the conflict has been defined, shall support the parties in presenting settlement proposals, taking careful note of the rapprochements that occur or of the proposed solutions that lead to a positive and fruitful result, considering the true interest of the parties. e. Shall have special interest and care in warning the parties that the agreements reached are viable.

MINUTES: The minutes shall be clear and precise, containing precisely the rights and obligations acquired by each of the parties, if there is agreement, or certification that there was none, always preserving the confidentiality that characterizes the procedure. The conciliator, in drafting the minutes, shall follow these rules:

• a)

  In the event that the parties reach a total or partial conciliation agreement, the conciliator shall immediately prepare the minutes, clearly expressing that having the capacity to conciliate, they have reached the following agreement, incorporating it therein. The minutes shall be signed by the parties and the conciliator.

• b)

  If one or both parties fail to appear at the second hearing, the hearing shall be concluded and the conciliator shall issue to the interested party certification of the impossibility of conciliation.

• c)

  When the parties are unable to achieve self-resolution of the conflict, they may request the conciliator, verbally, jointly or separately, to set a date for a new hearing. The conciliator shall record an act of suspension of the hearing and shall indicate the date and time at which the new hearing is scheduled and shall inform the Director of the request for a new hearing, in order to verify the number of hearings that have been held and the costs thereof.

• d)

  When one or both parties, due to disagreement or lack of conciliatory intent, are unable to reach a settlement of the conflict, the conciliation shall be concluded and the conciliator shall immediately prepare the minutes which constitute certification of disagreement and shall be signed by the parties and the conciliator.

APPLICATION OF THE REGULATION: This Regulation applies when: 1. The parties have agreed in the arbitration agreement to submit to the Regulation of the Center for Conciliation and Arbitration of the Chamber of Commerce and Industry of Tegucigalpa. 2. When this Regulation applies, it shall be the one in effect at the time of the filing of the claim, unless the parties have agreed in the arbitration agreement to submit to the Regulation in effect on the date of execution of the Arbitration Agreement. 3. In matters not provided for in this Regulation, the procedure before the Arbitral Tribunal shall be governed by the provisions of the Conciliation and Arbitration Law. 4. The parties may, by mutual agreement, modify in whole or in part the procedural rules provided for in this Regulation, in accordance with the provisions of the Conciliation and Arbitration Law. 5. In those cases in which the parties indicate in the arbitration agreement that they submit to both the procedural rules of this Center and those established in the Conciliation and Arbitration Law, this Regulation shall prevail and, in the gaps in this Regulation, the Conciliation and Arbitration Law shall apply. 6. Everything not provided for in this Regulation, and in the absence of agreement between the parties, shall be resolved by the Arbitral Tribunal once it is constituted and installed.

DIRECTION OF THE PROCESS: The Arbitral Tribunal, through its president, shall have the faculty to direct the process and the debate; without prejudice to the participation of the other arbitrators.

MANNER OF RESOLVING MATTERS: The Arbitral Tribunal shall decide all matters submitted to its consideration in accordance with law, in equity, or in accordance with the rules and principles of a science, art, or trade, as may have been stipulated in the arbitration agreement. In the event that the parties have not agreed thereon, the Tribunal shall resolve in accordance with law.

NOTIFICATIONS AND COMMUNICATIONS: The following criteria regarding written notifications and communications are adopted:

• a)

  Any notification and any other written communication shall be deemed valid if delivered personally to the addressee or to whosoever has representation on the addressee's behalf, at the special address, at the establishment where the addressee conducts principal activities, or at the usual residence.

• b)

  When none of the places indicated in the preceding subsection can be located, any notification or written communication shall be deemed received if it has been sent by certified mail or any other means that provides evidence of the fact, to the last known establishment, address, or usual residence.

• c)

  Notifications shall likewise be valid when made by certified mail, telex, facsimile, or any other means of electronic communication by which evidence of receipt by the addressee is preserved.

• d)

  In hearings, notifications shall be made in open court to the parties present or absent when they have been duly summoned, in accordance with the provisions of this Article.

• e)

  In case of default of the defendant, notifications to the defendant shall be made in accordance with the provisions of subsections a), b), c), and d). In the cases of subsections a) and b), the notification or communication shall be deemed received on the date on which delivery was made.

COPIES OF PROCEEDINGS AND DOCUMENTS: Of all proceedings, documents, and any other information that one of the parties provides to the Arbitral Tribunal, a copy shall be delivered to the other party, without the need for an order requiring such delivery. In the same manner, expert reports or evidentiary documents on which the Arbitral Tribunal may base its decision shall be made available to both parties.

DURATION OF THE PROCESS: Unless otherwise agreed by the parties, the duration of the arbitral process shall not exceed five (5) months, counted from the moment the last arbitrator accepted the appointment, without prejudice to the parties being able to agree, by mutual agreement and prior to its expiration, to extend it.

TIME LIMITS:

• a)

  For the purpose of calculating the time limits established in this Regulation, these shall commence to run from the day following the date on which a notification or communication is received. If the last day of the time limit falls on a holiday or non-working day, the time limit shall be extended until the first business day following.

• b)

  The time limits indicated in days in this Regulation are understood to be business days, unless expressly stated otherwise. Business days are those days and hours during which the Center is open to the public.

• c)

  The Arbitral Tribunal may authorize the use of non-business days and hours, it being understood that it authorizes such use when it orders or executes diligences during non-business days and hours.

• d)

  The Arbitral Tribunal, in addition to the time limits indicated in this Regulation, shall have the freedom to set those required by the procedure. However, the Tribunal may extend such time limits if it is deemed that an extension is justified.

SEAT OF ARBITRATION: The seat of the Arbitral Tribunal is the same as that of the Center. Notwithstanding the foregoing, and unless otherwise agreed, the Arbitral Tribunal may meet at any place it deems appropriate.

LANGUAGE:

• a)

  The language of domestic arbitration shall be Spanish.

• b)

  In hearings, either party may request the Arbitral Tribunal to appoint a translator. The translator's fees shall be borne by the party that requests it.

• c)

  The Arbitral Tribunal shall order that documents annexed to the written claim or to the answer, and any documents or instruments that are presented during the proceedings in a language other than Spanish, shall be accompanied by a translation. The translation shall not require any formality, except that it must be made by a person qualified to do so.

• d)

  In the case of international arbitration, the parties may freely agree on the language or languages that shall be used in the arbitral proceedings. In the absence of such agreement, the arbitral tribunal shall determine the language or languages to be used in the arbitral proceedings.

REPRESENTATION The parties shall be represented by one or more legal professionals, duly registered and accredited by power of attorney granted before a Notary Public in office; except in cases where the law permits their direct intervention. The power of attorney granted to represent the parties in an arbitral proceeding includes, in addition to the legal faculties granted to it, the faculty to receive notice of all actions taken by the tribunal without being able to agree otherwise. In cases where the parties are represented by two or more legal professionals, duly accredited, communications and notifications shall be effective when made to any one of them. It is the duty of the parties' representatives to provide physical and electronic contact addresses for information and notification purposes. Likewise, representatives shall update said addresses in case of modification, under penalty of communications and notifications being validly served at the previously provided addresses. The parties may grant special power of attorney to their representatives to modify the arbitral agreement and/or to designate arbitrators when it corresponds to the parties to designate them in accordance with what is provided in the arbitral agreement. If such faculties are not expressly granted, the parties shall be the only ones authorized to perform such actions.

ORALITY OF THE PROCEEDING The Arbitral Tribunal shall apply, in the arbitral proceeding, the principle of orality and shall endeavor that the actions be performed in accordance with this principle, through the holding of the respective hearings which may be recorded by any means of material support. The actions performed in the hearings may be recorded in summary form in minutes, provided that such practice does not compromise the agility of the proceeding.

PRESENTATION OF DOCUMENTS All documents related to the arbitral proceeding must be presented at the offices of the Center within the established deadlines. Presentation shall be made by the parties in person or through a representative, who may use a messenger, certified mail, courier service, or any other means available that guarantees certainty of sending and receipt.

EXEMPTION OF LIABILITY Neither the Chamber of Commerce and Industry of Tegucigalpa, nor the Center for Conciliation and Arbitration, nor its administrative staff shall be responsible before any person or institution for facts, acts or omissions related to arbitral proceedings that it administers.

NUMBER OF ARBITRATORS The number of arbitrators shall always be odd. Any agreement by the parties to the contrary shall be deemed unwritten, in which case the provisions in the following paragraph of this article shall apply for the composition of the tribunal. If the parties have not agreed on the number of arbitrators, the tribunal shall be composed of: a. One (1) arbitrator, when the amount of the claims is less than the sum equivalent to fifty (50) legal monthly minimum wages for the largest commerce sector. b. Three (3) arbitrators, when the amount of the claims is equal to or greater than the sum equivalent to fifty (50) legal monthly minimum wages for the largest commerce sector. c. Three (3) arbitrators, when the amount is indeterminate.

APPOINTMENT OF ARBITRATORS In the event that the parties have not appointed the arbitrators in the arbitral agreement or have omitted the procedure for doing so, the appointment shall be made by the Arbitration Commission on a rotating basis and taking into account the specialty of those registered in the official list of arbitrators. The Arbitration Commission, for this purpose, may carry out a pre-selection of arbitrators who are specialists in a particular matter, who, in accordance with the nature of the case presented, have the experience and knowledge required for such case, and from these the designation shall be made for the composition of the Tribunal. In pursuit of greater efficiency, for each case proprietary arbitrators and alternate arbitrators shall be designated, who shall replace the proprietary ones in case they do not accept the position, or for any other reason cannot exercise it or cease their functions. If the procedure for the appointment of arbitrators does not correspond to the CCIT, the process shall be conducted in accordance with the will of the parties and current legal provisions; but if those who must appoint the arbitrators do not do so in the manner and deadline established, the Arbitration Commission shall proceed to make the corresponding appointment(s). Once the arbitrators have been appointed, they shall be notified of their appointment in writing, by the most expeditious means at the Center's consideration, so that within the following five (5) days they manifest in writing whether they accept or not. The failure to manifest within the stated period shall be deemed negative and shall allow the Arbitration Commission to appoint another arbitrator. If the parties did not agree on the substitution of arbitrators, the appointment shall be made by the Arbitration Commission. The parties jointly may delegate to the two arbitrators designated by them the appointment of the third arbitrator that will integrate the arbitral tribunal, from the official lists of arbitrators of the Center.

MULTI-PARTY ARBITRATION When arbitrators must be appointed by the parties and there is a plurality of claimants or defendants, the members of each party shall act jointly, in their capacity as claimants or defendants, for the appointment of arbitrators, unless another method for doing so has been defined. In case one of the parties, with a plurality of claimants or defendants, fails to reach agreement on the designation of arbitrators or does not attend the arbitrator designation meetings to which they have been convened, the Arbitration Commission shall proceed with the appointment of the non-designated arbitrators, at the request of any of the parties.

INDEPENDENCE AND IMPARTIALITY Every arbitrator must be and remain, at all times, independent and impartial.

RECUSAL Arbitrators may abstain from acting as such or be challenged for the same grounds established by the Law for holders of the jurisdictional body. In the same manner they may be challenged for not meeting the conditions that according to the law, the arbitral agreement, or this Regulation have been established for the case. Arbitrators designated by the parties may only be challenged immediately and for grounds that arise after their appointment.

RECUSAL PROCEEDING a) The party challenging an arbitrator must communicate it in writing to the Director of the Center, to the Arbitration Tribunal, and to the other party; explaining the grounds for the challenge. The challenge shall be presented within a period of three (3) days counted from the day following the date of having received notification of the arbitrator's acceptance, or within the three (3) days following the date of having become aware of the existence of the cause for challenge. b) When an arbitrator has been challenged by one party, the other party and/or the challenged arbitrator shall have the right to present the corresponding defenses. This right shall be exercised within a period of three (3) days counted from the day following the date of having received the communication referred to in the preceding subsection, with a copy to the Director of the Center, the Arbitral Tribunal, and the party that filed the challenge. c) The Tribunal, at its sole discretion, may suspend or continue the arbitral proceedings while the challenge is pending resolution by the Arbitration Commission. d) The other party may agree with the challenge or the challenged arbitrator may voluntarily withdraw. If either of the two aforementioned cases were to occur, the arbitrator shall be replaced, without this implying that the reasons for the challenge are valid. e) If the other party does not agree with the challenge and if the challenged arbitrator does not accept the challenge, nor resigns from the position, the decision shall be made by the Arbitration Commission, based on the evidence presented. No appeal shall lie against the decision of the Arbitration Commission.

SUBSTITUTION OF AN ARBITRATOR In case of death, resignation, or separation of an arbitrator during the arbitral proceeding, a substitute arbitrator shall be appointed or elected in accordance with the rules established in this Regulation. In such case the arbitral proceeding shall be suspended, for which reason said period shall not be counted for purposes of calculating the maximum duration deadline of the arbitral proceeding and, consequently, shall be deducted in its entirety.

REQUEST FOR COMPOSITION OF ARBITRAL TRIBUNAL Upon the dispute arising, any of the parties that are signatories to the arbitral agreement shall present the request for composition of the arbitral tribunal to the Center. This request for composition of the arbitral tribunal does not constitute the statement of claim, which the interested party might present if applicable, in accordance with what this regulation establishes. With the request for composition of the arbitral tribunal, copies of the same must be presented, taking into account the number of arbitrators that must compose the Arbitral Tribunal and the number of parties that are defendants. The request for composition of the arbitral tribunal addressed to the Center must contain the requirements established in article 58 of this Regulation. The Center shall proceed to form the case file, to which any document, writing and/or request presented shall be added, until the Tribunal is installed and issues the corresponding resolutions. Prior to the installation of the arbitral tribunal, access to the request for composition of the arbitral tribunal and its annexes shall only be available to the parties, their legal representatives or their duly accredited representatives, and from that point on, it shall be the Arbitral Tribunal that is competent to establish which persons have access to the statement of claim and to the case file.

REQUIREMENTS OF THE REQUEST FOR COMPOSITION OF ARBITRAL TRIBUNAL The request for composition of the arbitral tribunal shall be presented physically at the Center, duly signed by one or more parties, or by their representatives expressly authorized to present it. It shall contain:

• a)

  Full name of the parties if they are natural persons. In the case of legal entities, their corporate name or legal designation.

• b)

  Address, email, telephone, legal particulars of the parties and of their representatives or legal representatives.

• c)

  A brief summary of the dispute, disagreement, or matters that they wish to submit to arbitration.

• d)

  The rational estimation of the amount or the declaration that it lacks a determined value.

• e)

  The address for receiving notifications, telephone number, fax, and email.

• f)

  The receipt that evidences payment of the corresponding 50% of administrative expenses in favor of the CCIT.

CONCILIATION HEARING IN THE ARBITRAL PROCEEDING Upon presentation of the request for composition of the arbitral tribunal, the Center shall send a note informing the other party of the presentation of such request and shall invite the parties to hold a conciliation hearing. This communication shall be sent to the address provided by the applicant in their request for composition of the arbitral tribunal. If a total agreement is reached and all claims of the parties are settled, the Director shall conclude the arbitral proceeding. If the settlement is partial, the proceeding shall continue with respect to the unconciled claims. If conciliation is not achieved, the director shall proceed to compose the Arbitral Tribunal in accordance with what was agreed by the parties or what is established in this Regulation.

NEW CONCILIATION HEARING At any stage of the arbitral proceeding, before the award is pronounced, the parties, by mutual agreement, may request the Tribunal to suspend the same to hold a new conciliation hearing directed by the Director of the Center, or to reach a settlement that will be incorporated in an arbitral award if the parties so request. The time that the parties spend in holding the new conciliation hearing, from the request until the moment an agreement is or is not reached between them, shall not be taken into account for the calculation of the deadline for the duration of the arbitral process.

INSTALLATION HEARING: Once the appointment has been accepted in writing by all arbitrators and, where applicable, after the challenge and substitution procedures have been completed, and conciliation has been conducted without reaching a complete settlement of the differences, the arbitral tribunal shall be installed at a hearing for which the Center shall set the date and time and shall convene the parties. At this hearing: 1. The Center shall deliver to the Arbitral Tribunal a copy of the file with all documents and proceedings completed up to that date. 2. The Center shall administer the oath to the arbitrator(s) and shall declare them duly sworn into their offices. 3. The President of the Arbitral Tribunal shall be appointed. 4. The Tribunal at the Installation hearing shall appoint its Secretary, who must attend the following hearing, at which he shall be sworn in before the President of the Tribunal, shall take possession of the office, and shall assume the duties that correspond to him from that moment on. 5. The Director or Sub-Director of the Center shall act as Ad-Hoc Secretaries, solely for the conduct of this hearing. 6. The Center for Conciliation and Arbitration of the Tegucigalpa Chamber of Commerce and Industry shall be established as the place of operation of the Arbitral Tribunal. 7. A period of fifteen (15) business days shall be granted to the party that files the request for the formation of an arbitral tribunal to present before the arbitrators the written complaint together with its corresponding attachments. 8. The provision of funds for the operation of the arbitral tribunal shall be determined.

REQUIREMENTS OF THE COMPLAINT: The complaint document must contain at least the following requirements: a. Full name of the parties if they are natural persons. In the case of legal entities, their corporate name or legal denomination. b. Address, email, telephone, domicile, and general legal information of the parties and their representatives or legal proxies. c. Evidence of the existence and legal representation of the claimant, when it is a legal entity. d. The claims being made, points in dispute, the facts on which they are based and the evidence intended to be presented, and in the case of arbitration on the merits, the legal grounds. e. A reasonable estimate of the amount in controversy or a statement that it lacks a determined value. f. The address for receiving notifications, telephone number, fax, and email. g. A copy of the document containing the arbitration agreement, if one exists. h. Any attachments that are relevant. In case the party who files the request for the formation of an arbitral tribunal does not present its complaint within the established timeframe, the tribunal shall terminate its functions and shall return the documents to the parties.

ADMISSION OF THE COMPLAINT: The Arbitral Tribunal shall proceed to issue a resolution in which it rules on the admission, non-admission, or correction of the complaint. In case the complaint contains defects or omissions that can be corrected, the Arbitral Tribunal shall proceed to notify the claimant party, so that it may correct what corresponds within five (5) business days following notification.

RESPONSE AND COUNTERCLAIM: 1. If the Arbitral Tribunal admits the complaint, it shall be transmitted to the respondent party so that it may respond and propose, where applicable, the objections it deems relevant, within fifteen (15) business days following transmission. The response to the complaint must meet the same requirements as the complaint. 2. If the summoned or respondent party, in responding to the complaint, proposes objections or a counterclaim, the matter shall be transmitted to the claimant or summoning party so that within seven (7) business days it may pronounce itself with regard to the objections raised and respond to the counterclaim. 3. If in responding to the counterclaim the counterclaimant raises objections, the matter shall be transmitted to the counterclaimant so that within seven (7) business days it may respond to the objections raised. 4. If the summoned or respondent party does not respond to the complaint within the time established to do so, the Secretary of the Arbitral Tribunal shall make a record thereof, and the case shall proceed with the respondent in default.

TACIT SUBMISSION: Notwithstanding that proof of a written arbitration agreement is not attached to the complaint, the Secretary, by order of the Arbitral Tribunal, shall transmit it to the other party in accordance with legal provisions, and if the latter responds to the complaint within the established timeframe, it shall be understood that it agrees to submit the controversy to the arbitral jurisdiction of the Center and consequently submits itself to the provisions of this Regulation.

PROVISION OF FUNDS: At the installation hearing, the Tribunal shall require, where applicable, each of the parties to deposit an equal sum as arbitrator fees, secretary fees, administrative expenses, in accordance with the rates established by the Center, without prejudice to accrediting fifty percent (50%) of the administrative expenses incurred by the applicant at the time of filing the request for the formation of an arbitral tribunal. During the course of proceedings, the Tribunal may require additional deposits from the parties as necessary expenses for the operation of the Tribunal. If one of the parties requests it, the Tribunal shall set the amount of the deposits or additional deposits. If within five (5) days of notification of the requirement, the deposits have not been paid in full, the Tribunal shall inform the parties of this fact so that each of them may make the required payment. If this payment is not made, the Tribunal may suspend or conclude the arbitration procedure, or may dispense with the evidence or proceeding proposed, as the case may be. In case one of the parties does not comply with the tribunal's requirement, the party that did comply with the requirement may deposit the amount corresponding to the other party in order to prevent the Tribunal from dispensing with evidence, a proceeding, or from suspending or concluding the process, a situation that the Arbitral Tribunal shall take into account in calculating the individual costs of the process. In case of default by the respondent, the party requesting the arbitration process may pay the total costs of the process; without prejudice to the calculation made by the Arbitral Tribunal or the right of recovery. The payment of administrative expenses and fees corresponding to a party comprised of several parties may not be divided and these shall be obligated to pay the totality thereof.

CONSOLIDATION OF ARBITRATION PROCEEDINGS: At the request of a party, two or more arbitration proceedings may be consolidated, provided that: 1. The parties have agreed to the consolidation, or 2. In the more recent proceedings the Arbitral Tribunal has not been constituted and all complaints in the arbitration proceedings have been formulated under the same arbitration agreement, or 3. When complaints are formulated on the basis of different arbitration agreements, the arbitrations shall be: between the same parties, the controversies in the arbitrations arise in relation to the same legal relationship, and the Arbitral Tribunal before whom the consolidation request is filed, based on its study of the proceedings, considers that the arbitration agreements are compatible and that the proceedings should constitute a single action and conclude in a single award. In all the above cases, consolidation shall always be made with the oldest proceeding, unless all parties, by mutual agreement, decide otherwise.

RULES FOR DETERMINING THE AMOUNT IN CONTROVERSY IN THE ARBITRATION PROCEEDING: The Arbitral Tribunal shall determine the amount in controversy in the arbitration proceeding in accordance with the following rules: 1. If there is no counterclaim, the amount in controversy in the arbitration proceeding shall be that indicated in the complaint. 2. If there is a counterclaim, an amount shall be computed for the main claim and another for the counterclaim, which shall have separate provision of funds, although they shall be processed in the same proceeding. 3. If from examination of the complaint, the counterclaim, if any, and other evidence, it appears that the amount can be determined, the Arbitral Tribunal may set it even though the parties have indicated that it is undetermined. 4. In case the amount is undetermined, the Arbitral Tribunal may establish in the award a specific amount of the claim or counterclaim if, in accordance with the evidence presented in the process, the amount thereof is proven. In this case the parties shall pay the resulting amount, upon delivery of the authenticated copy of the award issued. SUB-SECTION II FIRST HEARING ON THE MERITS

FIRST HEARING ON THE MERITS: Once the complaint, the response to the complaint, the counterclaim, and the response thereto, if any, have been admitted, the Arbitral Tribunal shall convene the parties to a First Hearing on the Merits, setting the date, time, and place. At this hearing the Tribunal must resolve the following points: 1. Its own competence, including objections relating to the existence, validity, or effectiveness of the Arbitration Agreement, which must be raised in the written response to the complaint or considered sua sponte by the Tribunal. 2. Total or partial objection to arbitration due to non-existence, ineffectiveness, or invalidity of the Arbitration Agreement, or because arbitration was not agreed upon to resolve the disputed matter, must be raised when presenting the response to the complaint. The arbitrators, however, may consider these matters sua sponte. The Arbitral Tribunal must resolve these matters as a preliminary issue. 3. The Arbitral Tribunal may ask the parties for clarification, correction, or supplementation of the complaint, the response, the counterclaim, or the response thereto; which they must provide within three (3) days counted from the day following the end of this hearing. The parties shall have three (3) days to respond to any corrections or supplementations. 4. On the amount in controversy of the complaint and the counterclaim, if any, as well as provisions regarding the corresponding provision of funds. 5. Objections or procedural defects that have been raised, unless the Tribunal reserves ruling on these objections for the award. 6. Correction of defects or any other incidence affecting procedural or substantive elements. 7. Establishment of admitted facts and disputed facts on which the Tribunal must rule. 8. Maximum date for issuing the award. 9. The procedure that the arbitration shall follow, the calendar of hearings for the presentation and submission of evidence, including evidence relating to evidence presented by the opposing party, the manner in which the evidence shall be submitted, and any other aspect the Tribunal deems relevant for the proper conduct of the process. SUB-SECTION III EVIDENCE AND HEARINGS

ADMISSIBILITY AND VALUE OF EVIDENCE: The Arbitral Tribunal shall have the exclusive power to determine the admissibility, relevance, and value of evidence, as well as the timeframes for the presentation and submission of evidence, applying the following criteria: 1. Each party shall bear the burden of proof for the facts on which it bases its claims or defenses. 2. At any stage of the process, the arbitrators may request the parties to provide clarifications or information; they may also order sua sponte the submission of the evidence that they deem necessary. 3. In the case of expert evidence, they may order that the report be explained or expanded. 4. The Arbitral Tribunal may deem deadlines already met by the parties as having passed. The inactivity of the parties shall not prevent the continuation of the process, nor shall it prevent the issuance of the award based on what has already been presented. 5. The Arbitral Tribunal may decline, with reasons stated, to consider evidence not submitted, if it considers itself adequately informed, by means of an order against which no appeal shall lie. 6. The presentation of evidence, except in the case of documentary evidence, shall take place at a hearing for which the parties shall be notified in advance of the date, time, and place at which the respective hearing or proceeding shall take place. 7. Evidence shall be presented by the full Tribunal; for evidence that must be presented outside the place of domicile, the Tribunal may either conduct it directly or delegate to a judicial authority of the location to conduct it. For the presentation of evidence abroad, the Tribunal shall proceed in the same manner and terms as ordinary judges do in accordance with the Civil Procedure Code.

EXPERTS: The parties may request the appointment of experts to inform the Tribunal on specific matters that the latter may determine. The fees of the expert shall be paid by the party requesting his appointment. Likewise, the Tribunal may appoint sua sponte such experts as it deems necessary; in this case the fees of the experts shall be covered by the fund for process expenses. SUB-SECTION IV CLOSING ARGUMENTS

CLOSING ARGUMENTS: Once evidence has been submitted, the Arbitral Tribunal shall convene the parties to hear the closing arguments of the parties, setting the date, time, and place for such purpose, at which time they must submit a written summary of their arguments.

AWARD HEARING: Upon conclusion of the closing arguments, the Arbitral Tribunal, at the same hearing, shall set the date and time for the award hearing, at which the Arbitral Tribunal shall carry out the following actions: 1. It shall read the operative part of the award, whereby the parties shall be notified of the decision of the Arbitral Tribunal. 2. The hearing shall be concluded with the delivery of a copy of the authentic award to each of the parties. If any of the parties does not attend such hearing, the award shall be notified to it within three (3) days of its issuance, and the authenticated copy thereof shall be delivered.

VOTING BY THE ARBITRAL TRIBUNAL: Awards or decisions of collegiate arbitral tribunals shall be valid when adopted by simple majority vote of the arbitrators. In case there is no majority vote, the president of the Tribunal shall have a double vote.

CONTENT OF THE AWARD: The award shall be issued in writing, must be reasoned, and shall contain the following:

• a)

  Place and date.

• b)

  Names of the parties, their legal representatives if any, and the arbitrators.

• c)

  The matter submitted to arbitration and a summary of the arguments and conclusions of the parties.

• d)

  The evaluation of the evidence presented.

• e)

  The resolution, which must be clear, precise, and consistent with the complaints and other claims timely made in the proceeding, making the declarations that these require, condemning or absolving the respondent, and deciding all points in dispute that were subject to debate. When these have been several, the pronouncement corresponding to each of them shall be made with due separation.

• f)

  The determination of the amount of process costs, if any; and g) The signature of the members of the tribunal and the secretary.

FORCE AND VALIDITY OF THE AWARD: The award has the same force and validity as a judicial sentence.

EFFECT OF THE AWARD: The final arbitral award produces the effects of res judicata and provides executive merit in the manner and terms established in the Civil Procedure Code.

CLARIFICATION AND CORRECTION OF THE AWARD: Within three (3) days following notification of the award to the parties, they may request clarification, supplementation, or correction thereof, in the latter case for calculation error, copying error, or typographical error, or the arbitrators may make corrections of their own motion. The tribunal shall clarify, supplement, or correct the award, if applicable, within a period not exceeding seven (7) days counted from the respective request. No remedy shall lie against this decision.

REMEDIES: Against the arbitral award, only the remedy of annulment may be filed, and against other decisions of the arbitrators, only the remedy of reconsideration before the same Tribunal shall proceed, except where the Conciliation and Arbitration Law has provided that no remedy lies. If the parties so stipulate in the arbitration agreement, the remedy of annulment of the award issued by the Arbitral Tribunal may be heard and decided by another arbitral tribunal constituted in the same manner as the first, for which purpose the record shall be remitted to it. In all other respects, both remedies are governed in accordance with what is established in the Conciliation and Arbitration Law. Sub Section VI LIQUIDATION OF TRIBUNAL EXPENSES

FINAL LIQUIDATION OF EXPENSES: Upon conclusion of the proceedings, the Arbitral Tribunal shall make the final liquidation of additional expenses requested from the parties to advance the proceedings, distinct from the administrative expenses contemplated in the Center's fee schedule, for which purpose it shall cover pending expenses and, after rendering an itemized account, shall return any balance to the parties if there is one. CHAPTER IV OF THE ARBITRAL TRIBUNAL THAT SHALL HEAR THE REMEDY OF ANNULMENT

COMPOSITION OF THE ARBITRAL TRIBUNAL THAT SHALL HEAR THE REMEDY OF ANNULMENT: The arbitral tribunal that shall hear the Remedy of Annulment shall be appointed, composed, and installed in accordance with what is provided by the Conciliation and Arbitration Law and this Regulation, solely to hear the Remedy of Annulment that may have been filed, in the event that the parties have agreed that such remedy shall be heard by an arbitral tribunal. For the proper handling of this Remedy, the provisions of Articles 74, 75, 76, and 77 of the Conciliation and Arbitration Law shall be followed.

ADMISSIBILITY OF THE REMEDY OF ANNULMENT: The Arbitral Tribunal that shall hear the Remedy of Annulment shall summarily reject the remedy of annulment when it appears manifest that its filing is untimely or when the grounds do not correspond to any of those indicated in the Conciliation and Arbitration Law. In the order by means of which the arbitral tribunal that shall hear the Remedy of Annulment assumes jurisdiction of the remedy if it proves to be admissible, it shall order successive five-day periods to the appellant to present arguments and to the opposing party to submit its brief. The periods shall be conducted by the Secretary without need of a new order. In the event that the remedy is not properly formalized by the appellant, the arbitral tribunal that shall hear the Remedy of Annulment shall declare it abandoned with condemnation in costs to the appellant's charge.

EVIDENCE: After the periods have elapsed and the necessary evidence has been presented as deemed appropriate by the Arbitral Tribunal, the remedy shall be decided, for which said Arbitral Tribunal shall have a period not exceeding one month.

CONSEQUENCES OF THE REMEDY OF ANNULMENT: When any of the grounds indicated in numerals 1, 2, 3, 4, 5, and 6 of Article 74 of the Conciliation and Arbitration Law is successful, the arbitral tribunal that shall hear the Remedy of Annulment shall declare the award null. In all other cases, it shall proceed to order the arbitral tribunal to make the corresponding corrections or additions. Against the order of the arbitral tribunal that shall hear the Remedy of Annulment, no remedy shall lie.

PRECAUTIONARY MEASURES IN CASE OF REMEDY OF ANNULMENT: Upon filing of the Remedy of Annulment, the interested party may request appropriate precautionary measures to ensure the full effectiveness of the remedy. CHAPTER V OF SPECIAL PROCEDURES

SPECIAL PROCEDURES: The Arbitration Commission may submit to the consideration and approval of the Board of Directors of the CCIT regulations for specialized procedures, supplementary to this Regulation. Section I SPECIAL PROCEDURE FOR TECHNICAL AGRICULTURAL ARBITRATION

SPECIAL PROCEDURE FOR TECHNICAL AGRICULTURAL ARBITRATION: In cases where it is contractually provided, in any of the forms recognized by law, the parties may submit to technical agricultural arbitration the disputes arising from the quality of agricultural products that are the subject of the contract. In these cases the Arbitral Tribunal shall be unipersonal. The other disputes and claims that arise in connection with contracts relating to agricultural production, which do not refer to the quality of the product, shall be processed in accordance with the provisions of this Regulation for common arbitration.

REQUIREMENTS OF THE ARBITRATION CLAUSE: In order for technical agricultural arbitration to be carried out in accordance with this Regulation, the arbitration clause shall comply with the following requirements:

• a)

  It shall include the technical quality standards stipulated by the parties to consider that a product meets the quality requirements required by the product buyer.

• b)

  It shall include the names of three arbitrators who are part of the special list that the Conciliation and Arbitration Center maintains, from which one shall be selected at the appropriate procedural moment. These arbitrators may not be challenged, as their acceptance is retroactive to the execution of the contract, unless after the execution of the contract a ground for challenge has arisen, as referred to in Article 54 of this Regulation.

• c)

  They shall include physical addresses, electronic mail addresses, telephone numbers, and other contact information of the parties to the contract as well as of the contractually designated arbitrators.

• d)

  The parties must expressly submit to this Regulation, specifically to this Section denominated "Special Procedure for Technical Agricultural Arbitration".

• e)

  The issuance of the following documents shall be provided for: i. Document of Validation of Product Quality. ii. Document of Non-Conformity with Product Quality.

The seller of the product, when it is time to harvest the product, may request from the buyer the issuance of the "Document of Validation of Product Quality". If the buyer refuses to deliver that document within the calendar day following the request, or instead delivers the "Document of Non-Conformity with Product Quality", the seller may initiate the technical agricultural arbitration process by presenting the petition for integration of the respective Arbitral Tribunal, in accordance with the formats attached to this Regulation; a claim that may even be presented electronically. The petition for integration shall include the complaint and its attachments.

The buyer of the product, who has issued the "Document of Non-Conformity with Product Quality" may also file for technical agricultural arbitration, in order to certify the non-compliance with the quality standards provided for contractually.

The arbitration claim shall be submitted by any of the means of communication contractually provided, in the following cases: i. When the "Product Quality Non-Conformity Document" has been issued. ii. After the date provided for the delivery of the "Product Quality Validation Document" has passed, without said document having been delivered to the seller.

The party initiating the technical agricultural arbitration process shall attach to the claim, proof of complete payment of the arbitration fund provision, according to the current rates in the Conciliation and Arbitration Center of the Chamber of Commerce and Industry of Tegucigalpa.

The Center shall forward the claim to the defendant party, so that within a period of one (1) business day it shall manifest in writing to the Center and by the means provided in this chapter whether there is indeed a conflict regarding the quality of the product. The forwarding to the defendant party may be made to the electronic address contractually provided, and shall be understood as made on the date of sending of the corresponding email. Likewise, the Center shall notify the arbitrators designated contractually, one by one, by their order of designation in the corresponding arbitration clause, so that they manifest whether or not they accept the position and until one of them accepts it. The Center within the following business day after the respective communication with the arbitrator who accepted the position shall draw up the respective appointment record of the arbitrator who shall resolve the controversy. If the communication is by telephone, the Center may record the arbitrator's response regarding the acceptance or non-acceptance of the position. In case that none of the arbitrators designated in the contract accept the position, the Arbitration Commission of the Center shall designate an arbitrator from the official list of arbitrators of the Center, within two (2) business days following the date of the last evidence of non-acceptance by the previously designated arbitrators. In this case, communication with the appointed arbitrators shall be made in accordance with what is provided in the first paragraph of this article. The knowledge and decision of challenges that the parties intend to assert against the appointed arbitrator shall be presented the business day following the communication of acceptance by the appointed arbitrator and shall be known and resolved by the Arbitration Commission within two (2) business days following their presentation. This decision shall be without recourse. If the defendant manifests that there is no conflict over the quality of the product and that he accepts the assertions of the plaintiff party, the arbitrator shall consider the conflict settled and the proceedings shall be filed without further action. The plaintiff party may request, in this case, that the arbitrator certify the proceedings. If the defendant replies, manifesting that there is indeed a conflict over the quality of the product of the plaintiff party, the arbitration proceedings shall continue, convening the First Procedural Hearing. If he does not reply within the business day following the service of the claim, he shall be deemed in default, he shall be notified of the resolutions at the address contractually provided, and the First Procedural Hearing shall be set for the following business day in order to cover the agenda referred to in the following Article.

FIRST PROCEDURAL HEARING: The First Procedural Hearing shall have the following agenda: a. Attempt to reconcile the differences of the parties, under the direction of the Director of the Center. b. Oath-taking of the appointed arbitrator. c. Decision of the appointed arbitrator regarding his own competence. d. Knowledge and decision on any nullity or incidence that the parties propose. e. Setting of the Technical Evidence Hearing that the Arbitrator shall conduct on the product subject of the contract, a hearing that shall be held within two (2) business days following the date of the First Procedural Hearing, and more than one Technical Evidence Hearing may be held.

The appointed arbitrator shall serve as secretary and shall be assisted by the Center in everything necessary to advance the arbitration process.

The arbitrator, in the Technical Evidence Hearing, shall conduct all necessary proceedings and technical evidence to determine the quality of the product. The arbitrator shall conduct a sufficient quantity of random tests to consider the product certified and may avail himself of all means at his disposal for such purpose. If any of the parties prevents the arbitrator from producing technical evidence, a presumption shall arise against the party that obstructed the production of the means of evidence and consequently the arbitrator shall issue the award against the party that obstructed the production of technical evidence.

The arbitrator shall issue an arbitral award within two (2) business days following the conclusion of the Technical Evidence Hearing, which shall be notified to the parties no later than within the following business day after the award has been issued. The losing party shall be condemned in costs.

Any deadline not provided for in this Section shall be one (1) business day. In all other matters, and provided that they do not denature or contradict what is established in this Section, the other provisions of this Regulation relating to common arbitration processes shall be used in a supplementary manner.

Any nullity remedy that is filed against awards issued in accordance with this section shall be processed before another Arbitral Tribunal composed of one arbitrator who shall be appointed by the Arbitration Commission of the Center, from the general list of arbitrators, and the procedure established in the section regarding the arbitral tribunal that shall hear the Nullity Remedy shall be followed. CHAPTER VI INTERNATIONAL ARBITRATION

OF INTERNATIONAL ARBITRATION: The Conciliation and Arbitration Center of the Chamber of Commerce and Industry of Tegucigalpa may process international arbitrations, in cases where the parties have agreed to it in the respective Arbitration Agreement. Those arbitrations shall be considered international which, in accordance with International Treaties or law, must have such consideration.

SUBSTANTIVE RULES: In international arbitrations, the substantive rules applicable shall be considered those agreed by the parties in the respective Arbitration Agreement or, failing that, those determined by the Arbitral Tribunal in the respective First Procedural Hearing. PROCEDURAL RULES: The procedural rules in an international arbitration are those of the regulation to which the parties have submitted themselves and as mandatory arbitral rules those of the place that has been established as the seat of the arbitration. In international arbitrations that are advanced in this Center, the procedural rules shall be considered those developed in this Regulation, and mandatory rules those of the Conciliation and Arbitration Law of Honduras. The arbitrations shall be advanced in accordance with what is provided in this Regulation, with the modifications established by this Chapter.

ARBITRATION IN LAW: In international arbitrations that must be resolved in law, the arbitrators must be legal professionals and be authorized to practice their profession. It is understood that the arbitrator meets this requirement if he is authorized to practice the profession of law in the country where he practices it.

TECHNICAL ARBITRATION: In international arbitrations that must be resolved in accordance with technical rules or principles, the arbitrators must be experts in the art, profession, or trade that corresponds. It is understood that the arbitrators meet this requirement if they practice it in their country of origin.

FIRST PROCEDURAL HEARING: In international arbitrations, in addition to what is established in article 69 of this Regulation, the Arbitral Tribunal, in case the parties do not establish it by mutual agreement, shall pronounce itself on the language of the arbitration and the rules applicable to the specific case.

NATIONALITY OF ARBITRATORS: Except by agreement otherwise of the parties, the nationality of a person shall not be an obstacle for that person to act as an arbitrator. CHAPTER VII FINAL PROVISIONS

FEES: The Board of Directors of the Chamber of Commerce and Industry of Tegucigalpa shall have the authority to establish, regulate, and modify fees for administrative expenses, compensation for conciliators, arbitrators, secretaries of the tribunals, experts, and any other persons involved in the proceedings; as well as fees for any other service provided by the Center.

APPLICATION OF FEES BY THE ARBITRAL TRIBUNAL: The Arbitral Tribunals constituted in accordance with this Regulation shall adhere to the fees authorized by the Board of Directors, as well as the guidelines related to the payment of expenses and compensation approved by the Arbitration Commission.

ETHICAL PRINCIPLES: The ethical principles that govern the Center shall be approved by the Board of Directors of the Chamber of Commerce and Industry of Tegucigalpa, as well as any amendments thereto.

PROCEEDINGS IN PROCESS: Conciliations and arbitrations that are in process upon the entry into force of this Regulation shall continue to be processed until their completion in accordance with the previous Regulation, which shall remain in force only for these purposes.

AMENDMENTS TO THE REGULATION: This Regulation may be amended by the Board of Directors of the Chamber of Commerce and Industry of Tegucigalpa, when it deems it appropriate or necessary.

EFFECTIVE DATE OF THE REGULATION: This Regulation shall enter into force as of its publication on the website of the Conciliation and Arbitration Center of the Chamber of Commerce and Industry of Tegucigalpa and expressly replaces the one in effect until that date. Note: This Regulation was published on the website of the Conciliation and Arbitration Center of the Chamber of Commerce and Industry of Tegucigalpa on March 4, 2016.