B
e@ ARTICLE 5

(a) This Agreement shall enter into force on the date of signature.

(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 shall, with respect to
Investment Support provided while this Agreement was in force, remain in force so long
i as such Investment Support remains outstanding, but in no case longer than twenty years !
afier the termination of this Agreement. i

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

Done in duplicate at Washington this 2¢°day of April, 1999.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA: THE UNITED KINGDOM OF GREAT
BRITAIN AND NORTHERN IRELAND:

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AGREEMENT
BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND
THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN
AND NORTHERN IRELAND ON BEHALF OF THE
TURKS AND CAICOS ISLANDS RELATING TO INVESTMENT INCENTIVES

THE GOVERNMENT OF THE UNITED STATES OF AMERICA and THE
GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND, on behalf of the Government of the Turks and Caicos
Islands;

AFFIRMING their common desire to encourage economic activities in the Turks
and Caicos Islands that promote the development of the economic resources and
productive capacities of the Turks and Caicos Islands; 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 and reinsurance, debt and 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 Support" 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 Turks and Caicos Islands.
The term "Issuer" refers to OPIC and any successor 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
Turks and Caicos Islands and all liabilities with respect thereto.

ARTICLE 2

The Governments of the United Kingdom of Great Britain and Northern Ireland,
including the Turks and Caicos Islands, and the United States of America, 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 Turks
and Caicos Islands applicable to insurance or financial organizations, but, in the provision



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

(b) All operations and activities undertaken by the Issuer in connection with
any Investment Support, and all payments, whether of interest, principal, 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 in the first
instance by others in respect of such payments. Neither projects receiving Investment
Support nor investors in such projects shall be exempt from Taxes by operation of this
Article, provided, however, that any project receiving Investment Support shall be
accorded tax treatment no less favorable than that accorded to a project receiving
investment support by any other national or multilateral development institution which
operates in the Turks and Caicos Islands. 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, but 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 a creditor or subrogee, in connection with any Investment Support, the
Government of the Turks and Caicos Islands 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, or which may arise. in
connection therewith; provided that, to the extent that the laws of the Turks and Caicos
Islands partially or wholly invalidate or prohibit the transfer or acquisition of any such
interest in any property within the territory of the Turks and Caicos Islands to the Issuer.
the Government of the Turks and Caicos Islands 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 the Turks and Caicos Islands.

(a) With respect to any interests transferred to the Issuer or any interests to
which the Issuer succeeds under this Article, 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 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 it may have as the Issuer pursuant to paragraph (c) of this Article.

ARTICLE 3

(a) Funds in the currency of the Turks and Caicos Islands, 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 provided by the Issuer for a project in the Turks and Caicos Islands,
shall be accorded treatment in the territory of the Turks and Caicos Islands no less
favorable as to use than the treatment to which such funds would have been entitled in the
hands of the person or entity from which the Issuer acquired such amounts.



(b) Such currency 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 the Turks and Caicos Islands in accordance with its laws.

ARTICLE 4

(a) Any dispute between the Government of the United States of America and
the Government of the United Kingdom of Great Britain and Norther Ireland, including
the Turks and Caicos Islands, 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 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 Governments 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 arbitral tribunal referred to in paragraph (a) of this Article shall be
established and shall function as follows:

@ 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 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 International Centre for the
Settlement of Investment Disputes to make the necessary appointment or
appointments. Both Governments hereby agree to accept such appointment or
appointments.

Gi) Decisions of the arbitral tribunal shall be made by majority vote
and shal} be based on the applicable principles and rules of international law. Its
decision shall be final and binding.

Gii) 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 all other matters, the arbitral tribunal shall regulate its own
procedures.

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