"Any dispute or controversy which may arise out of or in relation with this contract including disputes and controversies concerning its validity, interpretation, performance or non performance of the contract shall be referred to arbitration, excluding the jurisdiction of the ordinary courts.

If the defendant in such a dispute or controversy is a Bulgarian foreign trade organization, the Italian plaintiff shall be entitled to decide at his discretion that the arbitration:

a) shall take place at the arbitration court at the Bulgarian Chamber of Commerce and Industry in accordance with the Rules of the said court, which the parties declare they know and accept; or

b) shall take place in accordance with the Rules for Arbitration of the Economic Council for Europe of the Organisation of the United Nations of 1966, which the parties declare they know and accept.

If the defendant in such a dispute or controversy is an Italian physical or legal person, the Bulgarian plaintiff shall be entitled to decide at his discretion that the arbitration:

a) shall take place at the Arbitration Court at the Italian Arbitration Association in accordance with the Arbitration Rules of the said court, which the parties declare they know and accept; or

b) shall take place in accordance with the rules for arbitration of the Economic Council for Europe of the Organization of the United Nations of 1966, which the parties declare they know and accept.

All arbitration awards to be rendered in accordance with this arbitration clause shall be binding upon both parties."