Government, to an arbitral tribunal for resolution in
accordance with paragraph (b) of this Article.

(b) The arbitral tribunal referred to in Paragraph (a)
of this Article, shall be established and function as
follows:

(1) Each Government shall appoint one arbitrator;
these two arbitrators shall, by agreement, designate a
president of the arbitral tribunal who shall be a
citizen of a third state and whose appointment shall be
subject to acceptance by the two Governments. The
arbitrators shall be appointed within three months and
the president 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
other agreement, request the Secretary-General of the
Permanent Court of Arbitration to make the necessary
appointment or appointments, and both Governments agree
to accept such appointment or appointments.

(ii) The arbitral tribunal shall base its
decision on the applicable principles and rules of
international law. The arbitral tribunal shall decide
by majority vote. Its decision shall be final and
binding.

(iii) During the proceedings, each of the

Governments shall pay the expense of its arbitrator and


. 2.
KyY30lIT eDuIDMN juan, hadese OysyHma Caray hop nakow hyryr, MyIKujjot
hyryry, uinvanap, umTujasnap £9 ja OyHyHa oNaromap omapar mejnana
UHXaH BO ja MéjZaHa YHXa OmowoK MOHKOMS UDDMACH MpoTM CYPMOK YUYH
acacwap Oapecuume EmutTentun hyryr Bapucamjunu Tocaur emp.

(II) Oxop EMATeRT KEeLMTOR HMMM 963 hyryrwapyHH hojava KeUnbep—
KoH hop hancy ommax copEoTopm aslapca Bo ja hop haucu hyryrvacun,
MYJKUJJoT , UlGnatap, uxTujasiap hyryryeyH Bo ja MohKomMe unmuacy
YUYH OCaCapyH EapMcMhe yeEpumepcea, AzopOajuan hexymoTu- Oy Casnlny
3-4y MaZocuHo yjryH Onapar OyHapuH aJSHONTHHS Eo ja mupac rammy-
PHHH TocUur elup. :

(2) Euutex? tope@me xaamK omnyry Bo Cy madnonnn (a) naga-
PpagwHta xecTopuniujm Pajama xysowT eToujm hyryraapmas yotys hyryr
ToOC eTMOJOYORKOUG.

(c) Amepuxa Enpaomnnm llrarazapsHyn Tejpu-Thwapet axeHTIMjn
KUM EMBTeHT CapocuHna TuyapeT , CHPOpTa Bo MamMjjo TolKumaTacuHa
aH @fNJien Be A3apcajwan PecnyCamxacn PaxyHEecCnwJMjERMS BoB0LTa
TyTylaH MyITeamap MaMa enuMojovoxoup. (2) Emutertun torinm
eTIMju BO ja SomakoT IsKMMETO Eepumju Copunap yspo fameuop BO elome—
Jap AsopCajwanla Bepxunopuon asa eLwnowoxmmp. (a) naparpaguna
MyBadur cypoeTna hyryrnes CamPacuHa Eepusimocw Eo ja hyryr Eacucajn
YuyH EMmTenTaox AsopCajuanma Bepin TyTyJMajayarnoup. EMnresatun
Asopoajuanna hejata xewnpmujn Samra aMOIAjjatapyn Beck cexmun,
hadede hyryraapyn Camracuna EepuaAMecMHTen £9 hyryr Eapucmm juntos,
hyPyPwacsn KySolT eZMIMoCMBIOR Bo ja OallTacuna KeUNOCMETOH oBEOTKR
Bepew ehZommxmopu Asepoajwan PecnyOmmmacuHHH Py==omo omyO toréur
SiWJloH TaHYHESCuYMINjM no Bo AMepuKa Lupaolmum illrarnagy hexymoTu
uma Asacdajwan PecnyCamxacsiuH hexyMeT apacuEna xycycu Casnl
CavjiaHapca, hemmH Casmio myojjox @ZANOVOKINE.

Manna 3

Ly Casumun 2 (a) mannocnume KOCTOPMJIN IN Kuma A380pCaj4aH
PecnyOmxach spasucuHno EMuTeHT Topodunton hep haxch myaKujjotmy hop
haHCH ajWHH BecCMIMOCREMR, MMpac TOJYIMACHHSH, o0Z9 eamMocuEnA
AsopOajuan PecnyCamxacy PanxyHapy ule TucMeH EO TaN e"TuCapcus
hecaO exmamech Bo jaxy Tamaras onyHmacy Torgupia, Asapéajuan Pec-
nyCtmxacuy hexymeTu EMmTesto hoMue najNaN AsocCajwaH PaxyHapuna
S@fo CeJla Naja MamMK omar hyryry ofan Cusuxm £9 hyryru Moxcdepa
FIVIMOCH YUYH YjryH TOICMETOp xepMojo uwaszo Eepup.



MY E_7

This Agreement shall continue in force until the
expiration of twelve months from the date on which either
Government shall have given written notice of termination of
this Agreement to the other. Provided that in respect of
Coverage issued or loans made at any time before the
termination of this Agreement, its provisions shall continue
in effect with respect to such Coverage or loans for a
period of twenty years after the date of termination of this

Agreement.

This Agreement shall enter into force on the date on which
the Government of Azerbaijan notifies the Government of the
United States of America that all necessary, legal requirements

for entry into force of this Agreement have been fulfilled.

Done at Washington on the 28th day of September, 1992, in
duplicate, in the English language. An Azerbaijan language text
shall be prepared which shall be signed in Baku and shall be

considered equally authentic.

For the Government of For the Government of
THE UNITED STATES OF AMERICA AZERBAIJAN
= 3
we I
oe
ae aa



of its representation in the proceedings before the

arbitral tribunal, whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments. In its award,

the arbitral tribunal may, in its discretion,

reallocate expenses and costs between the two

Governments.

(iv) In all other matters, the arbitral tribunal

shall regulate its own procedures.

(c) Nothing in this Agreement shall limit the right of
the Government of the United States of America to assert a
claim under international law in its sovereign capacity, as

distinct from any rights of the Issuer.

RTICLE

The two Governments, desiring reciprocity, agree that,
in the event the Government of Azerbaijan makes arrangements
to issue Coverage or make loans for projects in the United
States of America under a program similar in substance to
the investment incentive program to which this Agreement
relates, provisions equivalent to those of this Agreement
shall apply with respect to such arrangements upon
completion of the constitutional or other legal processes of

both Governments approving such provisions.


AMEPUKA BMPJOUMM WTATIAPH hekyMOTH 79
ASOPBAJYWAH PECIYBJMKACH h@KYMOTM APACHHIA
KAMMTAI TOJYIVIYHA KOMOK hATTSHIA

CASK

Amepnxa Enpaommum Uratnzapy hexymetu Bo Asopoajwan Pecnyomm-
KecH hexymMoTu

A3sepoajwan PecnyOmukacunna urrucann ehTujaTaqapyH Bo ucTehcan
NOTCHCHAJHANH MAKMMAadHHa KeMOK eJOH Tocoppydar foammjjotune popay
Eepmok apsycyHla jeKIMA OALyIwapyHy Cojan elapox;

‘Amepnxa Eupnogmum illratnapy hekyMOTNHAH TaMmamusa Bo ja Tuco
To"MMH eTOnuju Bo Amepuxa Bupaommnm ilvatnapy hekymeTuany axexTmMju
olan Xapnun Xycycu WnBectucnjanap Kopnopacnjacyuya /

. /"OUMK"/ nmape sTTAjn Kalutad rojyryoyHyH
CHPOpPTAAHMACHHNH (0 uyNJiolex TOKpay CHTOPTAaIaHMaCyHHA), Oopumap
Eo BoMaheTIOp Ee pPmsMaCcMHMH homme MoPcoZa yaTMara KeMOK ella Cumaue-
jum Tocaur elopoex, :

allaramaxsvlap Capote fassvlura KoJIMMMMUIop:

Magne I

Ly Casmimgs "To’nmHaT" tTepmuHn KannTan PojyaynysyH hop hanow
WSKNIUS CHPOPTaaHMaCHHAa, TOKPap CHTOpTamaHMaCHHa Bo ja Asepoajuan
epasucukte MHEecTUcHja Jajuhecu uae omaronzap omapar’ "Emutentun"
E@pmnju somanoTo anugup, “Emurext" Tepmuan ONMX-a Bo Amepnxa
véiploinnl Urartagiesn O0MK-n# hyryrn Bapucn oman hop hakcw axeurau—
juH Eo Cynmapnax hop haxcu Oupusnu Comahuj jetsam Hymajonnocnua
aunque.

Manne 2

(a) (5) Oxop EMMTeHT To"MMHATNAH noTuhala enon hop hanes TOpo—
GH xejpuro eZoxum hojara Keumpopco, A8opCajwan hexymotu oy Casumux
S-4y MAZTeCMHMH My ZloamapyaN Hosapo afiapar EMMTexTo hop hancu onJax
COPPeTJepk, O YYNJISTOH NyJ BocauTu, Kpeaurnop Bo ja Cena To"MuHaT
ecacHHta eloHul hojata Heynpnsnocn uso Carn omnyry Kanntan Tojyaryny



INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF AZERBAIJAN

The Government of the United States of America and the
Government of Azerbaijan;

Affirming their common desire to encourage economic
activities in Azerbaijan which promote the development of the
economic resources and productive capacities of Azerbaijan; and

Recognizing that this objective can be promoted through
investment insurance (including reinsurance), loans and
investment guaranties which are backed in whole or in part by the
Government of the United States of America and provided by the
Overseas Private Investment Corporation ("OPIC"), an agency of
the Government of the United States of America;

Have agreed as follows:

ART. 1
As used in this Agreement, the term "Coverage" shall refer
to any investment insurance, reinsurance or investment
guaranty which is provided by an Issuer in connection with a
project in the territory of Azerbaijan, and the term
"Issuer" shall refer to OPIC, any successor agency of the
Government of the United States of America, and the agent of

either.


4,

(a) hop hekymet if MyHcud to"jnH elevoKIMp, By uxu MyHcud
PapmVIETIH PaswVINT acacwHZa hop uxn hexyMeT Topoduyuton To"JjMH enMecn
Oo joHWIOH BO YUYHYY TeBIeTuH BoToHTANN omaH cCopu Mya} joHToumupup.
MyHou@aop ya aj opsuxmo, camp uco MYHCMO0B MohKomMecuETS. apammypua
harrunta hexymetaepun hop haycy OUBMHMH MypawMoTu aTHRTErH KYHIOH
e"TU0apoH aJITH aj opsuHTo To"jnH elwiMemmgup. By To"junaTzap jyxapuna
Te jasiok MyMMeTJop apsuute hojata KeynpmsMosce, Oamra pasualimMa osManyrma
hekymoTJiopun hop haycy Oupu MuBectucnja MyCahncoampunn apalay Pasqupima-|
CH y3po bejHoaxamr Mopxosun Eam xatuéuszen xahum elo OWIap, Ta3uMn
To" juHaTH Bo ja To"juHaTzapy hojata xewpoux. By hanna hop uxu hexymet
Oy To"jmHaTH Bo ja To"jmnataapy To6yz eTMojo pasH Oauarnup.

(a) Myucndaop mohkomecu 63 Topapsnta Oe jxoixanr hyryryx retour
6TWVJISH IPMHCMMJopMuHO BO HOpMadapyHa scacmanawargup. Myxcudmop mohkomocn
Topaph coc ywoxmyry use Tedya equp. OnyH Topapy rorn omawarnup Bo hemnou
jepunHo jeTupusmommoup. z %

(in) Tohrurat samaHn hexymotme pny hop OMpM 63 MyHonduann Xo Bwlo PUM
Bo MyHcM@ep MohKoMocMHTS Npocenypadapma Tomcun OuyHMaCHHa YJryH cypotme
XOpwiopn eo jouon, CORB YUYH-XOpwiop Bo MyHcMGop MohKomocnHTS apallqupMe —
HHH Calta xopusopm uco ux hexymot TOpa@uAToH Oopadap huccesepme ero-
HUMUIO BMH UKM hekyMeT apachHya Cemylmy pyimocunnE NponopcnjartapyAH e3
MylahusocuHs Kepo Jojumgupe Onmop. .

(iy) bytyH DuKop Mocosemep OapocnETe MYHCV@Jop MohKomMecn 08 mpoce-
yp Pajataouwy MyojjoH emup. -

(C) By Casumzo hey no Amepuxa Lupaommum Uratzapy hexymotunnn
Emmtext xumu hop hagcu hyryrmapyHnan doprm, cyBepeH TeBmoT ofapar
bejromxaar hyryra yjryn toned Mpowm cypMex hyryPrapyay mohnynaalgupa
CYIMIB

Mamma 6

hop uku hekyme? rapmymray nosaxot XaTUPMHS pasHallypmap Ku,
oKop ABopOajuaH hexymotu Amepuxa Eupaoumun Wrarnapynma Ja juhomop
YayH MosMyHyHa Kepo MHBecTUCMjamapa KeMOK Nforpamyna OoH30j0H, jo"Hn
Oy Casullo 6aH39 jan Mporpama yjryH cypotzo To"muHat Bo ja Copy Bepuszmocn
Cabelo pasumallma oma eopco, emo Pasnmallmatapy hap uku hexymeTu
Oo joHMeCH YUYH KOHCTUTYCH ja BO Gakep Dany Npocerypasapyyn Calla yarqup—
HACTNAH CORBA Cy CasMilMH MyZZoamapy ule exEMPameRT MyDqoamap homun
PaswilalMasiapa Ta Maman equiovoKnup.



Manne 4

(a) EuuTeHTuu. Oen9 To"munataa omaronap Ojlacgar A3apCajuaH .
Ba jyTach WO AalLLHTH BocavTZoH , 0 WYMJONOH. Cy Badjyta uno altury
KPeNMTVeplon AcTugale eLWMech Bd OBMaPHH xeUypyIMECN YUYH A3ap~
CajwaH opasucnHa To"MMHATZaH ucTudans enon Topohe Moxcyc Eocanta
jabanwiax pexum EMaTenTo japantwnan pexmmiex hey Za aJBeplcu3s omma—
javargyp.

(B) Emurent 67 BocamTZ Bo KeeLuTepn hop hakcw woxca Bo ja
TollkusaTa Eepo Culof Ee CyHyH ecacHHTa homme Woxc Bo ja TouKuaat
Ona plan AsepCajuah apasucMnTe OnyH MoHadejnHo “oulON KOTUpMoLOR
E9 OHYH TaHyHES MUNN juno MYBAaGUr cypeToa copdect ucTuhale eno
ONJIO YOK BP.

(c) 4-wy MaqnonuH Mydnoanapy homynain-A8op0ajuanna Jajuhomop
yuvH EMmrentuy torqmm eTanmju Copwiap yspo ehTemmKaopuH TOHSUMTOR-
mocuate EmuTenTun AsopOajvak Baljytacy uno redya eno OnIa49 jn MoO-
Tariaps Bo KpeLMTJepe To WaMu eWowokDMp.

Mange 5

(a) Amepuxa Bupmommam IlivataapyanH hexymeTu Bo A3apOajuan
PecnyOmmkach hekymetn apacunna oy CasullmH Togcupune aud omaH Bo ja
hexYMOTIOPTOR OMPMEMH GUKEMRYS, TO"MMHATH anuHMem hop haxcy tajnho
Bo Ja feamMjjoT uno omaronap omapar Mejnaua wHxan CejHomxaar hyryr
MocoJeCMHe all MyOahvice MMKAH WaxwMEDo “KM hexyMoT apacHEya
Hansllardap joy wie apayak Tangupwiavargup. Jaasmurnap xeywpummocn
harrusia xahwlle MypawdeT siM1IMKIOH COnBa exep alTH aj opsnnto
aku hekyMeT TaplyslH passHr ocacwHTa myOahwcox: apanay Taaqupma3—
ca, myOahucs, o 4yMcoqon hommy myGahnconny OejHolxamr hyryra aun
omy6 - OJIMaMacH Macozoch Oy manuoHmE (B) naparpagyna myBadur cypormo
apalan Taltwpwimar yay hexyMeTmopoax hop haxcn Supmans tolloC6ycy
Wie MyHCMDIOp MohKoMOCcMHS Ee fusovoKDUE.

(B) MyCahucomogn Cy mammonuy (a) NaparpatsHa myBagur cypoTma
apanad PavOupMar yuyH MyHcMG@wlop mohKemecn allarslaxn Pajzama japa—
Tuayar Bo nllejowoKnup:



“4

topped Ja
Ate n20__
ie

Azarbaycan Respublikast

XARICI ISLOR
Nazirliyi
5B AEG
HOTA

Asepoajwan PecnyOmmacy Xapuun Vmnop Hasupamujn Amepuxa
Eupaommum lratzapy Laruraxy Cogmpmm june e3 ehtnpannHy ushap
e0up Bo A3apCajuan PecnyOmmmacn hexymotn uno Avepuxa Lupaommam
Iltataapy hexymeTn apacuyna Kanntan TojyaymyHa Kemox harryyza
Caml TYPK TwIMHO ayTeHTMK TopuyMecuHN basumamgypéar yuyH
KeHTe ome Jj eSyHa Moped oumup. hepmetan Jeznor HenaptameRTuuny
Tej0 e0WoH MOTHTO paSNINTH OJaH Termupme Casumnn TYPK DMJMHTO
BapanTHh coatahujjotsm nymajonMovocuuns apacuEna umsamana
Chop.

Xapnun Wenop Hasmpamjn Sypcernon hetugats ezopex Cogupmjo
63 Oejyk ehTapammHy Cup Taha Ounmupup.

Baus, 5 maj I998-uy ua.

AMSPUKA EMPJOUMML WTA TIA Path
LAKSUIAKH COSMPIM IME



as to use and conversion than the treatment to which such
funds would be entitled in the hands of the party under
Coverage.

(b) Such amounts and credits may be transferred by the
Issuer to any person or entity and upon such transfer shall
be freely available for use by such person or entity in the
territory of Azerbaijan in accordance with its laws.

(c) The provisions of this Article shall also apply to
any amounts and credits in the currency of Azerbaijan which
may be accepted by the Issuer in settlement of obligations
with respect to loans made by the Issuer for projects in

Azerbaijan.

ARTICLE 5

(a) Any dispute between the Government of the United
States of America and the Government of Azerbaijan regarding
the interpretation of this Agreement or which, in the
opinion of one of the Governments, presents a question of
international law arising out of any project or activity for
which Coverage has been issued shall be resolved, insofar as
possible, through negotiations between the two Governments.
If, at the end of six months following the request for
negotiations, the two Governments have not resolved the
dispute by agreement, the dispute, including the question of
whether such dispute presents a question of international

law, shall be submitted, at the initiative of either


Azerbaijan relating to any transfer, succession or other
acquisition described in paragraph (a) of this Article. In
all other cases, tax treatment of transactions conducted by
the Issuer in Azerbaijan, as well as tax liabilities
existing prior to such transfer, succession or other
acquisition, shall be determined by applicable law of
Azerbaijan or any applicable specific agreement between the
Government of the United States and the Government of

Azerbaijan.

ARTICLE 3

To the extent that the laws of Azerbaijan partially or
wholly invalidate or prohibit the transfer, succession or
other acquisition, as described in Article 2(a) of this
Agreement, of any interest in ‘any property within the
territory of Azerbaijan by the Issuer, the Government of
Azerbaijan shall permit the Issuer to make appropriate
arrangements pursuant to which such interests are
transferred to a person or entity permitted to own such

interests under the laws of Azerbaijan.

ARTI 4
(a) Amounts in the currency of Azerbaijan, including
credits thereof, acquired by the Issuer in connection with
payment to a party under Coverage shall be accorded

treatment in the territory of Azerbaijan no less favorable


ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage, the Government of Azerbaijan shall, subject

to the provisions of Article 3 of this Agreement,

recognize the transfer to the Issuer of any assets,
including those in the form of investment as well as
currency or credits, in connection with such payment,
as well as the succession of the Issuer to any right,
title, claim, privilege, or cause of action existing,
or which may arise, in connection therewith.

(ii) If the Issuer, in the exercise of its rights
as a creditor, acquires any such assets or succeeds to
any right, title, claim, privilege or cause of action,
the Government of Azerbaijan shall, subject to the
provisions of Article 3 of this Agreement, recognize
such acquisition or succession.

(b) The Issuer shall assert no greater rights than
those of the party from whom such rights were acquired as
described in paragraph (a) of this Article.

(c) The Issuer, as a non-commercial agency of the
Government of the United States of America, shall not be
subject to regulation under the laws of Azerbaijan
applicable to commercial insurance or financial
organizations. (d) Interest and fees on loans made or
guaranteed by the Issuer shall be exempt from tax in

Azerbaijan. The Issuer shall not be subject to tax in


Meqqe 7

by Casuu onya rysBecuuuy DajeHgupsianecs herrsuqa Oup hexy-
WeTuH OslrachHa Jas xeOeplepaar KeHNepZNjY. KYHZeH e"Ty0apeH
OH UKM aj-TYDTepsHaek TYS3eqe reasuermep. By Casumxu prazécz
Dajayqupimavazex hep hsach sexrya BePuLeH Te"iwHaTa 3e ja Sopumapa
KeaZukZe uce Oene Te” T Be Ja Oopumsy Oapecixne Casum iyZZe-
QMaps OHYH PYBBSCUHNH DajasTEpHNINPH BaxXTaeH e"TOapen uinpun uA
epsuHe PYBSeZe Tanavaraquyp.

By Casum Oapecisqe 63 KoncTuTycuja Be ja Dukep hyryr teme6-
Tepuny J 7 AsepOajuex hexyéetusun Avepuna Bupmeumuu

ai

Jepuxe jerupa
Ilrernépiusn hexkyMetuHe Oungupauju wyu Oy Casum rys3eje uuneweKmp.

Baky
Hycxede
pHH 28-qe

eT gle

AMBPHXA BuPIOLMAW WTATAPLHSH ASSPBAJWAH PHCIYBINACHHDH
iu wT TEPSiH 26H h8.vw8Ts TOPSOA