5

IN WITNESS WHEREOF, the undersigned, duly authorized by their
respective Governments, have signed this Agreement.

Done at Washington, on the 17th day of February, 2004, in
duplicate, in the English and Arabic languages, both texts being equally

authentic.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE
THE UNITED STATES OF AMERICA REPUBLIC OF TUNISIA
_
Peter S. Watson ~~ Mohamed Nouri Jouini }
President and CEO Minister of Developme: and

International Cooperatidn if



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INVESTMENT INCENTIVE AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF THE REPUBLIC OF TUNISIA

THE GOVERNMENT OF THE UNITED STATES OF AMERICA and THE
GOVERNMENT OF THE REPUBLIC OF TUNISIA;

AFFIRMING their common desire to encourage economic activities in
the Republic of Tunisia that promote the development of the economic
resources and productive capacities of the Republic of Tunisia; and

REcoGNizING that this objective can be promoted through investment
support provided by the Overseas Private Investment Corporation ("OPIC"),
a development institution and an agency of the United States of America, in
the form of investment insurance, reinsurance, debt end equity investments
and investment guaranties;

HAVE AGREED as follows:

ARTICLE 1

As used in this Agreement, the following terms have the meanings
herein provided. The term “Investment Suppor" refers to any debt or equity
investment, any investment guaranty and any investment insurance or
reinsurance which is provided by the Issuer in connection with a project in
the territory of the Republic of Tunisia. The term "Issuer" refers ta OPIC and
any successor that is an agency of the United States of America, and any
agent of either. The term "Taxes" means all present and future taxes,
levies, imposts, stamps, duties and charges, whether direct or indirect,
imposed in the Republic of Tunisia and all liabilities with respect thereto.

ARTICLE 2

The two Governments confirm their understanding that the Issuer’ 'S
activities are governmental in nature and therefore:

(a) The Issuer shall not be subject to regulation under the laws of
the Republic of Tunisia applicable to insurance or financial organizations,
unless, and only to the extent, that the Issuer maintains an office, branch or
permanent establishment in the Republic of Tunisia, but, in the provision of



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4

within six months, of the date of receipt of either Government's
request for arbitration. If the appointments are not made within the
foregoing time limits, either Government may, in the absence of any
cther agreement, request the Secretary-General of the Intemational
Centre for the Settlement of Investment Disputes to make the
necessary appointment or appointments. Both Govemments hereby
agree to accept such appointment or appointments.

(ii) Decisions of the arbitral tribunal shall be made by
majority vote and shall be based on the applicable principles and
rules of intemational iaw. {ts decision shail be final and binding.

(iii) During the proceedings, each Government shall bear
the expense of its arbitrator and of its representation in the -
Proceedings before the tribunal, whereas the expenses of the
president and other costs of the arbitration shall be paid in equal
parts by the two Governments. In its award, the arbitral tribunal may
reallocate expenses and costs between the two Governments,

{iv) In alt other matters, the arbitral tribunal shall regulate
its own procedures.

ARTICLE 5

(a) This Agreement shall enter into force on the date on which the
Government of the Republic of Tunisia notifies the Goverment of the
United States of America that all legal requirements for entry into force of
this Agreement have been fulfilled.

(b) This Agreement shall continue in force until six months from
the date of a receipt of a note by which one Government informs the other
of an intent to terminate this Agreement. In such event, the provisions of
this Agreement shali, with respect to Investment Support provided while this
Agreement was in force, remain in force so long as such Investment
Support remains outstanding, but in no case longer than twenty years after
the termination of this Agreement.

{c) Upon entry into force, this Agreement shall supersede, without
tetroactive effect, the agreement on investment guaranties between the
Government of the United States of America and the Government of the
Republic of Tunisia effected by exchange of notes signed on March 17 and
March 18, 1959, as amended by exchanges of notes on January 22 and
March 6, 1963 and May 10 and August 3, 1993, respectively, Any matter
concerning the Republic of Tunisia relating to support by OPIC of
investments in the territory of the Republic of Tunisia made after the entry
into force of this Agreement shall be resolved under the terms of this
Agreement.



{e) This Agreement shall not preclude the Goverment of the
Republic of Tunisia from requiring that investments and associated
activities be established in accordance with the terms and conditions set
farth in its legislation provided that such terms and conditions do not impair
any right set forth in the Treaty between the United States of America and
the Republic of Tunisia Conceming the Reciprocal Encouragement and
Protection of Investment, signed May 15, 1990, or any successor to such
Treaty.

ARTICLE 3

{a) | Amounts in the currency of the Republic of Tunisia, including
cash, accounts, credits, instruments or otherwise, acquired by the issuer
upon making a payment, or upon the exercise of its rights as a creditor, in
connection with any Investment Support for a project in the Republic of
Tunisia, shall be accorded treatment in the territory of the Republic of
Tunisia no less favorable as to use and conversion than the treatment to
which such funds would have been entitled in the hands of the person or
entity from which such amounts were acquired.

{b) | Such currency and credits may be transferred to any person
or entity and upon such transfer shall be freely available for use by such
person or entity in the territory of the Republic of Tunisia in accordance with
its laws.

ARTICLE 4

(a) Any dispute between the Government of the United States of
America and the Government of the Republic of Tunisia regarding the
interpretation of this Agreement or which, in the opinion of either party
hereto, presents a question of international law arising out of any project or
activity for which Investment Support has been provided shall be resolved,
insofar as possible, through negotiations between the two Governments. If,
six months following a request for negotiations hereunder, the two
Govemments have not resolved the dispute, the dispute, including the
question of whether such dispute presents a question of international law,
shall be submitted, at the initiative of either Government, to an arbitral
tribunal for resolution in accordance with paragraph (b) of this Article.

(b) The arbitrat tribunal referred to in paragraph (a) of this Articie
shall be established and shall function as follows:

(i) Each Government shall appoint one arbitrator. These
two arbitrators shall by agreement designate a president of the
tribunal who shall be a citizen of a third state and whose appointment
shall be subject to acceptance by the twa Govemments. The
arbitrators shall be appainted within three months, and the president



2

Investment Support, shall be afforded all rights and have access to all
remedies of any such entity, whether domestic, foreign or multilateral.

(b) The Issuer, all operations and activities undertaken by the
Issuer in connection with any Investment Support, and atl payments,
whether of interest, principai, fees, dividends, premiums or the proceeds
from the liquidation of assets or of any other nature, that are made,
received or guaranteed by the Issuer in connection with any Investment
Support shall be exempt from Taxes, whether imposed directly on the
Issuer or payable by others, provided, however, that the Issuer shall be
subject to Taxes in connection with the receipt of services other then legal
or ather specialized consulting services rendered to the Issuer -in
connection with Investment Support. Neither projects receiving Investment
Support nor investors in such projects (whether or not such investors are
receiving Investment Support} shall be exempt fram Taxes by operation of
this Article, provided, however, that any Investment Support shall be
accorded tax treatment no less favorable than that accorded to the
investment support of any other national or multilateral development
institution which operates in thé Republic of Tunisia. The Issuer shall not
be subject to Taxes in connection with any transfer, succession or other
acquisition which occurs pursuant to paragraph {c} of this Article or Article
3(a) hereof, unless such transfer, succession or acquisition {i) occurs
pursuant to paragraph (c) of this Article, (ii) involves Taxes tevied on the
issuér in respect of the registration of the transfer to the Issuer of title to real
estate or the right to business operations (other than cash, accounts,
credits, instruments or rights represented by share capital or other forms of
ownership interests in a business entity} required under Tunisian legislation,
and (iii) is not necessary in order for the Issuer to exercise its rights as a
creditor or subrogee or transferee or successor in respect of a payment or
exercise of such right in connection with Investment Support; provided that
obligations for Taxes previously accrued and unpaid with respect to
interests received by the Issuer shall not be extinguished as a result of such
transfer, succession or other acquisition.

{c) If the Issuer makes a payment to any person or entity, or
exercises its rights as @ creditor or subrogee, in connection with any
investment Support, the Government of the Republic of Tunisia shall
recognize the transfer to, or acquisition by, the Issuer of any cash,
accounts, credits, instruments or other assets in connection with such
payment or the exercise of such rights, as well as the succession of the
Issuer to any right, title, claim, privilege or cause of action existing, ar which
may arise, in connection therewith.

(d) With respect to any interests transferred to the Issuer or any
interests to which the Issuer succeeds under this Articte, the Issuer shall
assert no greater rights than those of the person or entity from whom such
interests were received, provided that nothing in this Agreement shal) limit
the right of the Government of the United States of America to assert a
claim under internationat law in its sovereign capacity that is distinct from
any tights it may have as the Issuer pursuant to paragraph {c) of this Article.