the compensation payable due to compensation received under other insurance
policies on account of the same event, except to the extent necessary to prevent
the Investor from receiving more than the amount of the loss. The Insured
received payment from another insurer for the loss of certain Covered Property in
its Kaga Bandoro office on December 25, 2012 and those losses were not
included in the Investor’s claim for compensation from OPIC. Since those losses
were not included in the Investor’s claim to OPIC, this limitation on
compensation does not apply (§7.03).

C. The Investor is in Compliance with its Contractual Duties in all material
respects

The Investor has complied with its duties under the Contract in all material
respects and has provided a certificate to that effect that is satisfactory to OPIC.

OPIC will pay compensation in an amount equal to the actual replacement cost of
the Covered Property consisting of vehicles (up to 200% of the historical cost of
each vehicle minus the 10% risk of loss retained by the Investor) upon
presentation to OPIC of documentation evidencing the replacement of the vehicle
and the amount paid. OPIC will pay compensation in an amount equal to the
historical cost of the other Covered Property that is the subject of this claim,
minus the 10% risk of loss retained by the Investor. The Investor will replace the
Covered Property that is the subject of this claim within three years of the
applicable loss.

The Investor will execute an assignment, and a receipt and release in connection
with payment of compensation transferring to OPIC the Investor’s claims arising
out of the losses due to Political Violence.

CONCLUSION

Based on the foregoing determinations and subject to the execution by the
Investor of an assignment and a receipt and release, | find that the political
violence claim of the Investor is valid and that OPIC is liable for up to
$595,413.40 in compensation. The actual amount for the vehicles will be
established and paid based upon subsequent documentation and in consideration
of the Investor’s release of OPIC from further liability for this incident.

OVERSEAS PRIVATE INVESTMENT
CORPORATION

BY: Kimberly Heimert

Its: Vice President and General Counsel

Date: i}+—
May 2, 2014



EXHIBIT 3 - MASTER CONTRACT AND CAR COUNTRY ANNEX


None of the exclusions set forth in Section 6.03 of the Contract apply, as (a) the
amount of compensation payable is not less than the minimum compensable loss;
(b) there are no measures that the Investor could have taken to protect the
Covered Property; (c) there is no question of provocation by the Investor; (d) the
Covered Property does not include any excluded items; and (e) the Investor is not
obligated to assign any insurance proceeds to a third party ($6.03 (a) — (e)).

B. Compensation is payable in an amount of up to $564,543.41

The Investor has certified the historical cost of the looted Covered Property at
$366,627.00. Under the Contract, compensation is payable for the reasonable
cost to replace the lost Covered Property with equivalent new property. Such
compensation may not to exceed 200% of the historical cost of the Covered
Property and is subject to a 10% risk retention by the Investor. If the Investor
elects compensation based on replacement cost, it must replace the lost property
within three years of the loss (§7.01(a)(ii)).

The Investor has requested compensation based on replacement cost and has
requested compensation in an amount equal to actual replacement for the Covered
Property consisting of vehicles (up to the 200% historical cost limit for each
vehicle) and compensation in an amount equal to 100% of the historical cost of
the other items of Covered Property. According to the Investor’s Certificate, the
historical cost of the vehicles is $294,943.45 and the historical cost of the other
items of Covered Property is $71,683.55. The maximum amount of compensation
is as follows:

Vehicles $589,886.90 (200% of historical cost)
Other Covered Property $71,683.55 (100% of historical cost)
Subtotal $661,570.45

Less 10% Retention $66,157.05

Maximum Compensation $595,413.40

None of the limitations upon compensation applies. The above amount is less
than the Master Contract Maximum Aggregate Compensation on the date of loss
($5,000,000) and less than the Project Country Maximum Aggregate
Compensation in the Country Annex ($892,284), and payment of compensation in
the above amount would not violate the Investor’s duty to be self-insured (§1.03;
§1.04; $7.02).

The Insured does not have any other insurance covering the Covered Property for
the risks insured under the Contract; however, the Insured has insurance covering
the Covered Property for other risks. Under the Contract, OPIC shall not reduce


EXHIBIT 1 — NOTICE, APPLICATION FOR COMPENSATION
AND RELATED DOCUMENTS


MEMORANDUM OF DETERMINATIONS

Political Violence Claim of International Rescue Committee (the “Investor”)

Central African Republic (“CAR”) — Project Country Annex to Master Contract of
Insurance No. X-075

I, CLAIM

By an e-mail dated March 28, 2013, the Investor notified OPIC that the Investor
had losses of Covered Property as a result of political violence in the CAR. On
July 24, 2013, the Investor submitted an initial application for compensation and
on August 23, 2013, provided an account of the lost Covered Property. The
Investor subsequently provided additional information regarding the
circumstances of the losses, requested adjustments to the amount claimed and on
February 24, 2014, provided a certificate confirming its representations in respect
of the claim.!

The losses occurred as a result of looting by Seleke rebel forces in cities
throughout CAR during several months of fighting against government forces.

On March 24, 2013, Seleke rebel forces took control of the capital city, Bangui,
and forced the President, Francois Bozize, to flee the country. The rebel forces
took control of three cities in which IRC offices were located, Kaga Bandoro,
Bangui, and Bocaranga, and forcibly seized Covered Property, such as office
equipment and vehicles. OPIC finds that the claim is valid and that the Investor is
entitled to compensation in the amount of up to $595,413.40.

II. FACTUAL BACKGROUND

The Central African Republic is one of the world’s least developed nations and is
currently experiencing a period of prolonged political instability and lawlessness.”
In 2007 and 2011, then-current President Francois Bozize’s administration signed
peace accords with various rebel groups. However, in December 2012, three
rebel groups in northern CAR, the Union of Democratic Forces for Unity
(UFDR), the Convention of Patriots for Justice and Peace (CPDJP), and the
Patriotic Convention for Saving the Country (CPSK), announced their unification
and formed the Seleka rebel group. The Seleka rebels claimed Bozize had failed
to fulfill the terms of the peace accords that the UFDR and the CPDJP had signed.
In January, Bozize’s government and the Seleka rebels attempted to negotiate a
new power sharing agreement, the Libreville Agreement, which quickly
collapsed. Beginning in December 2012 and over the next three months, the
Seleka rebels mounted attacks throughout the country advancing from the north to
the south capturing many major cities in their efforts to take control of the

' The notice, application for compensation and related documents are attached as Exhibit 1.
? The factual description is based upon reports in the international press and State Department background
notes, travel warnings and press briefings, copies of which are attached hereto as Exhibit 2.


EXHIBIT 2 - INTERNATIONAL PRESS AND STATE DEPARTMENT
REPORTS


country. By March 2013, the Seleka rebels had reached Bangui, the capital of
CAR, and overthrew Bozize’s government. On August 18", Seleka’s leader,
Michel Djotidia, was formally sworn in as president. In January 2014, President
Djotodia resigned and was replaced by Catherine Samba-Panza, but the conflict
remains ongoing.

The Seleka rebels’ capture and occupation of multiple cities over their three-
month offensive resulted in widespread looting, displacement, and human rights
violations. Multiple international organizations’ facilities were targeted, and
looting and violence persisted even after the overthrow of the government.
Insecurity was still prevalent in much of the country during Djotidia’s rule
because of his unwillingness or inability to control elements of the Seleka in
Bangui and other provinces. The demilitarization process has been slow because
various elements of the Seleka and other warlords have enough military strength
to ignore Djotodia and his successors.

The Investor is an international nongovernmental organization that provides
humanitarian aid in over 40 countries and in 22 U.S. cities. The Investor offers
emergency aid and long-term assistance to refugees and those displaced by war,
persecution, or natural disaster. The Investor has operated in the CAR since 2006
and continued operations throughout the Seleka rebel insurgency although at
diminished capacity at the height of the violence.

Ill. THE CONTRACT

A. Scope of Coverage

The Master Contract of Insurance No. X-075 dated May 24, 2010 (the “Master
Contract”) and the Country Annex for CAR dated September 21, 2010 (the
“Country Annex”) together constitute the contract of insurance (“the Contract”).>

Article VI of the Master Contract provides compensation if Political Violence is
the direct and immediate cause of the permanent loss of all or some of the
Covered Property due to physical damage, destruction, or the physical seizure and
retention of the Covered Property. “Covered Property” is defined in
Section1.01.1 as the computers, office equipment, vehicles, inventory, buildings,
furniture, generators, telecommunications equipment and other property that the
Investor provides from time to time to its branch offices (each a “Foreign
Enterprise”) for use in carrying out the Project and of which the Investor is the
direct or indirect beneficial owner or controller. “Political Violence” is defined in
Section 6.01 as “a violent act undertaken with the primary intent of achieving a
political objective, such as declared or undeclared war, hostile action by national
or international armed forces, civil war, revolution, insurrection, civil strife,

3 Copies of the Master Contract and the Country Annex are attached hereto as Exhibit 3. Terms capitalized
herein for other than grammatical reasons are used as defined in the Contract. Section references are to the
Master Contract.


IV.

terrorism or sabotage.” The “Project” is defined as the Investor’s humanitarian
relief projects, including, but not limited to, providing emergency and lifesaving
assistance, delivering medical and public health services, shelter and food, and
providing training, education and income-generating programs to refugees.

B. Compensation

Section 7.01 of the Master Contract provides that, if the requirements of Article
VI are satisfied and subject to limitations and self-insurance obligations,
compensation will be payable in the amount of the reasonable cost to repair any
item of Covered Property or replace it with equivalent new property. In either
case, compensation may not exceed 200% of the historical cost of the Covered
Property. The Investor is required to retain 10% of the risk of loss on a per loss
basis (§1.03 Self-Insurance Requirement). The Investor must repair or replace the
lost property within three years of the loss (§7.01 (a)(ii)) as a condition of
compensation.

DETERMINATIONS UNDER THE CONTRACT

A. Political violence was the direct and immediate cause of the permanent
loss of Covered Property

The Seleka insurrection that resulted in the overthrow of the Bozize
administration and the installment of Seleka’s leader, Djotodia, as the president of
the CAR, targeted and achieved a political objective and therefore constituted
Political Violence. The Seleka rebels destroyed and seized property from
individuals, public parties and NGOs, including humanitarian aid agency offices
such as the UN’s offices, all over the country as part of their overthrow of
President Bozize’s government. The extent of the violence and its causes are well
documented by accounts in the international press, as well as State Department
releases and background notes.

The Investor’s claim arises from the looting of its offices in Kaga Bandoro,
Bangui and Bocaranga. The Investor represents that Seleka rebels looted the
Kaga Bandoro office on December 25", 2012, the Bangui office on March 24!
2013, and the Bocaranga office on April 2", 2013. Independent sources describe
the looting and other acts of violence in those cities on those dates by the Seleka
rebels during the insurrection.

The Contract insured Covered Property defined to include computers, office
equipment, vehicles, inventory, buildings, furniture, generators,
telecommunications equipment and other property used to carry out the Investor’s
humanitarian relief efforts in the CAR. The Investor has certified that the
property that is the subject of the claim constitutes Covered Property as defined in
the Contract.