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,,, 7KH 3DUWLHV¶ SRVLWLRQV &ODLPDQW¶V SRVLWLRQ ,Q LWV OHWWHU GDWHG SULO &ODLPDQW VWDWHV WKH IROORZLQJ ³as for assessment of costs, Art. 9 paragraph 5 of the Treaty between TheFederal Republic of Germany and The Czech and Slovak Federal RepublicConcerning the Promotion and Reciprocal Protection of Investments of 2October 1990 ("the Treaty") provides that each Contracting Party shall bear thecosts of its own member and of its legal representation in the arbitrationproceedings. The same does account in relationship between an investor andone of the contracting countries through Art 10, para 2 of the aforementionedtreaty.While claimant will accept to carry his own costs in case of a positive award inhis favor, it will be unacceptable for him to carry the respondents’ costs in caseof a negative award. Imposing the risk of government attorney costs on losinginvestors in effect undermines the very purpose of such treaties; it raises thelitigation risk in factual situations which are as a rule ambiguous, confused andcontradictory to a prohibitive level, in particularly for smaller companies forwhom litigation risk is high and where a government enjoys significantsuperiority in terms of expertise, experience and resources available for defence(,QWHUQDWLRQDO 7KXQGHUELUG *DPLQJ &RUS Y 8QLWHG 0H[LFDQ 6WDWHV 6HSDUDWH 2SLQLRQ E\ 3URI 7KRPDV :lOGH 'HFHPEHU DW @ @), such as inthe present case. Insofar the UNCITRAL 2010 rules, that give discretion to thetribunal on the allocation of the costs, must be interpreted by the rules of theGerman – Czech BIT. 5HVSRQGHQW¶V SRVLWLRQ ,Q LWV OHWWHU GDWHG SULO 5HVSRQGHQW VWDWHG WKH IROORZLQJ ³6.RESPONDENT IS ENTITLED TO ITS ENTIRE COSTS7.Respondent requests that the Tribunal award it its entire costs. Respondentincurred these costs for its representation and for its own services regarding theclaim raised by Claimant. While Claimant initiated the proceedings, he failed tofulfil his duties under the applicable arbitration rules. The termination of theproceedings is therefore a consequence of Claimant’s breach of his duties. Thecosts incurred by Respondent were therefore wasted due to Claimant’s breachof his duties. Claimant should therefore bear the costs incurred by Respondent.

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,Q LWV OHWWHU GDWHG SULO 5HVSRQGHQW VWDWHG WKH IROORZLQJ ³6. RESPONDENT IS ENTITLED TO ITS ENTIRE COSTS 7. Respondent requests that the Tribunal award it its entire costs. Respondent incurred these costs for its representation and for its own services regarding the claim raised by Claimant. While Claimant initiated the proceedings, he failed to