APPLICATION OF THE ARBITRATION REGULATIONS

1. The Arbitration Regulations shall apply and be construed with respect to a Trust arbitration, as stated hereunder.

2. In the Arbitration Regulations, "dispute" includes an administration question.

3. Section 15(1) (Definition and form of arbitration agreement) of the Arbitration Regulations shall apply as if it read - The Settlor of a Trust shall be free to determine (by provision in the Trust Instrument) how, in relation to a Trust, disputes are resolved, subject only to such safeguards as are necessary in the public interest;".

4. Where in the Arbitration Regulations reference is made to a matter agreed between the parties to an arbitration agreement (including a matter which may be authorised, chosen, conferred, designated, nominated or vested by the parties) that matter shall (except where no effective provision is made) be determined as provided in the Trust Instrument.

5. Neither section 15 (Definition and form of arbitration agreement) of the Arbitration Regulations nor any rule of law or construction treating an arbitration agreement separate to any agreement of which it is a part shall apply in relation to a Trust arbitration.

6. The term "action" in section 16 (Arbitration agreement and substantive claim before a court) of the Arbitration Regulations includes an application or other reference to the Court concerning an administration question which the Trust Instrument requires to be submitted to arbitration and a stay of that application or other reference may be sought by any of the parties in relation to the Trust, whether or not a party to that application or other reference.

7. In any application or other reference to the Court referred to in paragraph 6, the Court may stay the proceedings on its own volition unless all parties in relation to the Trust affected by the application are before it or are represented by persons before it.

8. Section 41 (Form and contents of award) of the Arbitration Regulations shall apply as if it included the following sections:

"(5) Where a person is or has been a party to a Trust arbitration in the capacity of Trustee he shall, unless the tribunal otherwise orders, be entitled to the costs of the arbitration, in so far as they are not recovered from or paid by any other person, out of the fund held by the Trustee; and the tribunal may otherwise order only on the ground that the Trustee has in substance acted for his own benefit rather than for the benefit of the Trust.

"(6) Where a person is or has been a party to a Trust arbitration in the capacity of Trustee and is entitled to be paid his costs out of the fund held by the Trustee any doubt as to whether costs were reasonably incurred shall be resolved in favour of the Trustee. Costs shall be presumed to have been unreasonably incurred if they were incurred contrary to the duty of the Trustee."

9. For the purposes of enforcing an arbitral award under section 44(2)(a)(iii) (Application for setting aside as exclusive recourse against arbitral award) of the Arbitration Regulations, the term "dispute" includes an administration question.