"EXPORT CREDIT INSURANCE CONTRACT"
EXPORT CREDIT INSURANCE CONTRACT AGAINST COMMERCIAL AND NON COMMERCIAL RISKS (BASIC POLICY) Export Credit Insurance Contract Against Commercial and non Commercial Risks (Basic Policy) ___________________ On this day of ___________ the (date) __________ of (month) _____199 , in Cairo. Between: First, the Export Credit Guarantee Company of Egypt, an Egyptian joint stock company established according to Law no. 21 for 1992 and located in Cairo (hereinafter referred to as “The Company”) First Party Second,________________________________________________________ __________________________________________________________________ ____________________________________________________________ (hereinafter referred to as “The Company”) Second Party -2- Preamble Where as, - The exporter has presented an application for the guarantee of all export operations that be intends to conducts in external markets during the year (annex 1) - As the goods subject to the export operations are of Egyptian origin, which the supplier promises to prove by presenting the relevant certificates as part of the documents of each shipment conducted under this contract, hence providing the terms of eligibility for coverage as defined by Law no. 21 of the year 1992 concerning the creation of the Export Credit Guarantee Company of Egypt. - As the company has agreed to guarantee the operations defined in annex 2, all of which are short term operations and thus eligible for coverage by this policy. Therefore, according to the above, the two parties have concluded this contract in accordance with the principles and conditions stated hereinafter. Basic Principles of the contract Article 1 One- This contract, including the previously mentioned preamble and its attached annexes represents an indivisible entity regarding its obligations power and legal effects. b- The duration of the contract is of one year, stating on / / 199 and shall be automatically renewed for similar periods unless either party notifies the other on non – renewal at least one month prior to the end of the effective period. Three- The guarantee covers the amounts due on shipments conducted during the duration of the contract even if the due date of payment comes after its expiry. The guarantee does not cover any amounts due on shipments conducted before the entry into force of the contract. -3- Four- Payment intervals on export operations covered by the guarantee shall not exceed one hundred and eighty days, but may be extended, with the company’s approval, to one year. Five- The two parties shall meet their financial obligations as defined in this contract in the currency agreed upon as shown in Annex (2). Definitions Article (2) In implementation of this contract, the following terms are defined as follows:- 1- The exporter: means the party concluding the Exporter operations covered by this contract who has presented in his name an application for their insurance and has concluded the insurance contract accordingly. 2- The Buyer: means the importing party connected to the exporter as per the export contract. 3- The Company: means the Export Credit Guarantee Company of Egypt. 4- The Buyer’s State: means the state to which the goods subject to the Export contract covered by the insurance are exported or the state in which the buyer is incorporated. 5- Public authority in any state: means one of the governmental ministries or municipal units or any other juristic public authorities, or the establishments or companies considered by the company to be public authorities for the purpose of implementing the terms of this contract. 6- The payment currency: means the currency agreed upon for payment as shown in Annex (2). 7- The buyer’s currency: means the currency of the buyer’s state. 7- Exchange rate of the buyer’s currency: means for any day, the rate confirmed by the Central Bank in the buyer’s state that applies to payments related to external trade. If that exchange rate varies or changes several times on the same day, then the average exchange rate applied at the main banks of the buyer’s state shall be taken. Should that exchange rate be impossible to determine on that day, then the exchange rate of the nearest previous day on which the above regulations could apply, shall be taken. -4- 9- This contract: means this insurance contract together with its attached annexes that are considered as an undivided part of it, and any subsequent modification made on its provisions. Risks Covered by the Guarantee Article (3) According to this contract, the guarantee will cover unpaid dues of the exporter resulting from any export operation covered by it, provided that this non- payment is directly related to one of the risks occuring after shipment of the goods, of those imitatively defined below, and within the limits, terms and conditions specified in this contract. Commercial risks 1. Bankruptcy of the buyer : means for the purpose of this contract , the declaration of bankruptcy by a court's ruling or the drawing of a reconciliation preventing bankruptcy or any judicial procedure resulting in the debtor losing control over the management of his finances .The same applies in case of forced liquidation , in case the debtor is a juristic person unless the liquidation is meant solely for the purpose of reorganization or merging into another juristic person without affecting the creditors' rights. 2. Failure or inability of the buyer to pay the exporter his dues in the spite of the latter having fulfilled all his obligations towards the buyer . 3. Refusal or abstention of the buyer to receive the shipping documents of the shipped goods in spite of the exporter's fulfillment of all his obligations towards the buyer . Non Commercial Risks 4. The cancellation of the import license by the authorities of the buyer's state or its suspension, non-renewal, or their refusal to allow the goods into the state. 5. Interdiction by the transit state's authorities for the goods to cross their territory if such action prevents the arrival of the goods in the buyer's state -5- or if it increases shipment costs in a way that imposes an excessive burden on the exporter. 6. Seizure by the buyer's or the transit state of the shipped goods or their retainment or confiscation. 7. Prevention, whether directly or indirectly, by the authorities of the buyer's state or by the state through which payment shall be made, of the exporter obtaining his dues from the buyer on the due date, by such means as postponing payment, canceling it wholly or in part, or by taking any measures against the buyer that would result in failure or prevention of buyer from paying his dues to the exporter, whether such measures be based on a law, a decree, a regulation, or a decision. With the exception of measures taken to implement a judgement issued by a competent court. 8. Insolvency of the buyer if he is a public entity, or non-fulfillment of his contract with the exporter by his abstention either to receive the documents of the goods or his refusal or failure to pay them. 9. Taking measures outside Egypt, whether based on a law, a decree, a regulation, or a decision that would fundamentally impede the ability to transfer the value of the shipped goods into the payment currency . These measures include refusing or delaying the approval of the transfer. 10. Any military action undertaken by the buyer's state or a foreign entity that directly affects the material assets of the buyer, as well as general civil disturbances such as revolutions, coups d'etat, riots and acts of violence of public character, that would have the same effects insofar as they directly lead to the buyer's failure or delay in paying the amounts due to the exporter. Indemnification for losses resulting from the occurrence of any of the risks stated in this article is conditioned by the non-occurrence of any other risk that is excluded from the guarantee during the indemnification period specified in this contract, if this excluded risk leads to the severance of the cause and effect link between the risk covered by the guarantee and the loss to be indemnified. -6- Excluded Risks (Article 4) The guarantee does not cover losses resulting from : 1- The depreciation or devaluation of currency exchange rates . 2- Any measure or action taken with the approval of the exporter or under his direct responsibility . 3- Failure of the buyer or the exporter whoever operates on their behalf to obtain liences or approvals or to finalize the procedures necessary for the completion of the export contract before shipment of the goods as imposed by the laws or regulations in Egypt or abroad 4- Shipments of an unknown kind , source or value . 5- Risks pertaining to the nature of the goods . Conditions of the guarantee validity Article (5) The guarantee shall not cover the non-commercial operations conduced with a buyer related to the exporter by a subordination relationship or related by such a relationship to a third party . Subordination, in this context, means that one party means owns most of the other party’s capital, or that a third party owns most of the capital of both parties together that one of them is subject to the management or direction of the other party or that both are subject to the management or direction of a third party . The guarantee limits Article (6) 1- The guarantee shall cover all shipping operations undertaken by the exporter with importers from the states indicated in the attached statement ( Annex 2 ) within the limits of the value of the exporters operations to be implemented as indicated in that list . Upon the company’s written approval the guarantee may be extended to cover other operations or to include values greater than those indicated in the stated list . -7- 2- The guarantee is determined on the basis of the total value of the goods as stated in the shipping documents after deducting the amount due upon signing the export contract and other amounts of which there are guarantees in Egypt . Certification of commencement of the contract Article (7) 1- The exporter certifies that he has presented to the company before concluding the contract all data information agreements and arrangement in his possession and that may influence the position of the company relating to its participation as a party to the contract influence the conditions of this contract . 2- The exporter has to inform the company – for the duration of the contract and specially when he requests the addition of a new buyer to deal with about all data or information that reaches him if it would have an influence over the obligation of the company in accordance with this contract . 3- The exporter is responsible for damages caused to the company as a result of the exporter’s presentation of false information or for undue refusal to present data that he is obliged to present or that was requested from him or to correct false information that had presented all without prejudice to any other sanctions provided in this contract . Prior Approval by the Company Article (8) The exporter must obtain the company’s prior approval before undertaking any new export operations other than those defined in the attached statement (Annex 2) . However dealing may be undertaken without the company’s prior approval with buyers whose truncation have not been previously guaranteed by the company and about whom the exporter can find no information implying any irregularity in their fulfillment of their obligation provided that the debt of each of them does not exceed ten thousand U.S. dollars its equivalent at all times and provided that the exporter assumes 50% of the loss if it results from the realization of one of the commercial risks and that those buyers are form the countries included in the above mentioned statement ( Annex 2) taking into consideration not to exceed the maximum limit for operation defined in that statement for the buyer’s state . -8- Suspension, Modification, or Cancellation of the Guarantee Article (9) On the basis of its evaluation of risks, the company has the right, at any time, to suspend the guarantee temporarily, to decrease its value, to modify its conditions or to cancel it for states or individual buyers. This measure may be taken as of the date of its notification to the exporter or at any subsequent date as specified by the company in the notification. Guarantee Fees and Premiums Article (10) 1- The attached statement (Annex 3) indicates the guarantee fees and premium amounts due to be paid by the exporter, as well as the method and due dates of payment. Such fees and premiums are considered due for payment on their due dates without need for a notice or warning. 2- The exporter shall continue to pay the premiums on their due dates even in case of the realization of one of the risks covered by the guarantee as long as the contract to still valid. 3- Once paid, no fees or premiums may be reclaimed. However, all or part of the premiums may be returned if it is proven to the company that all or part of the shipment for which premiums were paid was not completed, without prejudice to the obligation of the exporter concerning the minimum premiums. Modification of Guarantee Fees and Premiums Article (11) On the basis of its evaluation of risks, the company shall have the right, at any time, to modify the guarantee fees and premiums. The modification shall become effective from the date of its notification if the exporter or at any subsequent date as specified NY the company in the notification, for shipments undertaken as of that date, even if these shipments concern export contracts concluded before it. Confidentiality of the Guarantee Article (12) The exporter pledges to keep this contract with the company confidential and not to reveal it to third parties with the exception of those to whom – and conditional upon the company’s approval – the exporter relinquishes his rights to indemnity in accordance with article (26). -9- Declaration of the Operations Article (13) 1- The exporter undertakes to provide the company with a declaration prepared according to the attached from (Annex 4), on a date not exceeding the tenth day of each month. The exporter shall continue to provide the company with the previously mentioned declaration even if no contracts were concluded and no shipments execute. The obligation to present this declaration shall subsist even if all shipments were finalized as long as amounts due for operations covered by the guarantee have not been paid by the exporter’s customers. 2- However, in the event that the company sees that the volume of the exporter’s operations is limited, it may require the exporter to declare every shipment made, together with a presentation of a copy of the shipping documents, within one week from the date of export. The Exporter’s Observance of good will and prudence in implementing the contract. Article (14) 1- The exporter shall observe the principles of good faith in implementing his obligations toward the company and cooperate and notify it of any data or information that might affect its obligations under this contract, as well as stay in contract with the company and follow its instructions and directions. 2- At all times, the exporter shall exert adequate efforts to avoid the occurrence of loss or to prevent its aggravation, and when necessary, to initiate arrangements, precautionary and urgent measures to preserve his rights including seeking to stop the delivery of dispatched goods on their way to the importer, if at all possible, and the stopping of any new shipments. Modification of the export contract Article (15) The exporter may not make agreements to modify the export contract, and may not relinquish any of his rights under this contract or the export contract. Furthermore, he may not enter into any agreements, settlement or arrangement with the buyer, the importing state’s authorities the transit state or other nor may be relinquish any guarantee or payment insurance without the company’s written approval. -10- However except in the case payment by cash against documents the exporter may extend the payment period without need for the company’s approval provided that the new payment date does not exceed the duration defined in special conditions relating to the limits of the guarantee as per the attached statement ( Annex 2 ) provided that the buyer is not in a position of default in payment and no precautionary measures have been taken against him by his creditors. Notification of the Occurrence of a Risk Article (16) 1- The exporter undertakes to notify the company according to the attached from ( Annex 5 ) of any action or even representing any of the risks covered by this contract within 30 days from the date of the undertaking of the action or the occurance of the event otherwise his right to the indemnity lapses . 2- The exporter also has to notify the company of all the payments he received and which he had previously notified as unpaid and of any indemnities received from any entity for the loss that be he has incurred. 3- The exporter declares that the company as soon as it receives a risk occurrence notification is entitled to excersis in his name all actions and arrangement that it deems suitable to preserve his nights or reduce the loss including taking steps relating to conciliation settlement and reschedule of debts . In this respect the company is in the state where the risk occurred that entitles to request from the exporter an irrevocable procreation valid in the state where the risk occurred that entitled the company to claim for his rights and take the necessary measures to preserve and protect them . The company shall also be entitled to request from the exporter assignment of his right against others or a third parties if this would make it easier for it to exercise its authorities provided in this Article . 4- The company is entitled according to its evaluation to instruct the exporter to undertake the procedures for claiming his rights or to preserve and protect them . The exporter shall follow the company’s instructions regarding this matter and notify it of each procedure undertaken and its result . Indemnification Maturity Periods Article (17) The indemnification for the risks covered by this contract shall be due by the end of the following periods:- 1- One month from the date of registration of the exporter’s debt on the list of verification of debts in case of the buyer’s bankruptcy or six months from the date the debt is due, whichever date comes first. -11- 2- Six months from the date the debt is due in case of the buyer’s failure to pay, or from the date of his refusal to receive the goods, or two months from the date the goods are resold, whichever date comes first. 3- Four months from the date the debt is due if failure to pay results from the realization of one of the non-recommercial risks. 4- Four months from the date the debt is due or the application for its transfer is requested, whichever date is later, and that in the case the transfer is refused or fails to be executed, or imposition of a preferential rate of exchange or transfer in a currency other than the currency of payment. Conditions for indemnity maturity Article (18) Indemnification shall be due subject to the following conditions:- 1- That the loss for which indemnity is requested is the direct result of one of the risks covered by this contract according to its ( Article 3 ) 2- That the risks be related to a shipment or shipments included in this contract and the exporter has notified the company of such a risk and delegated it to claim for his rights and that the required period for the indemnity maturity has passed. 3- That the debt of the exporter has written proof giving him the right to demand its payment . 4- That the exporter whoever replaces him or acts for his account has not breached any of his obligations specified in this contract . 5- In the event of the existence of a surely ship for the exporter’s debt towards the buyer that the exporter roves that he has taken all necessary measures to maintain that surely ship valid binding to the surety. 6- That the exporter proves if necessary that he or the person who replaces him or acts for his account has fulfilled his obligations specified in the export contract . Should there be any conflict with the buyer as to the exporter’s rights to his debts or its amount then a final court ruling in fervor of the exporter executable in the buyer’s state shall be required as a condition for indemnification. .-12- 7- That proof be given of deposits of amounts due to the exporter and earmarked for transfer abroad in an irrevocable deposit allocated for this purpose and the taking of all measures required for transfer if the matter is related to the risk of a non- transfer. 8- That the exporter proves that the goods are still in his legal and actual procession if the matter is related to the risks of refusal of receipt or non-receipt of the shipping document of the goods or refusal of their entry or transit. Calculation of loss Article (19) 1- The loss to be indemnified is calculated on the basis of the total value of the goods concerning which the risk occurred, and that were not paid, after adding or deducting the following amounts:- One- To be added: a) Shipment costs of goods that were not received by the buyer to be the destination agreed upon by the company in view of its resale. b) Judicial fees borne by the exporter in enforcement of his rights against the buyer or in execution of payment guarantees and any other expenses approved by the company that the exporter assumes in order to protect his rights including the expenses of resolving any conflict with the buyer related to the exporter’s rights to his debt in all or in part . Two) To be deducted : a) Amounts that the buyer was entitled to deduct such as an advance payment or as the result of compensation. b) Expenses and commissions that the exporter did not spend as a result of the realization of the risk. c) Amounts recovered by the exporter as a result of the resale of the goods or the execution of available personal or real guarantees and compensations obtained from another source, or any amounts available from execution belonging to the buyer that the exporter has at hand. -13- 2- If the risk is related to a shipment or more, part of which is covered by the guarantee while the other part is not, then the loss to be compensated for will be calculated on a proportional basis. 3- However, if the debt owed to the exporter is defined by virtue of a final court ruling enforceable in the buyer’s state regarding a dispute between the two parties about the export contract, calculation of the loss will rely upon the definition contained in the court’s ruling and without prejudice to the rules of subsection (2) of this article. 4- In the court that the buyer does not receive the dispatched goods as a result of the occurrence of any of the risks mentioned in subsection 3, 4 and 5 of article (3), then the goods have to be kept in the exporter’s possession, unless the company demands their delivery to it, and they should not to resold except with the company’s approval. Otherwise, the exporter’s right to the indemnity shall lapse. Loss Calculation in case of prevention of transit of the goods Article (20) If the transit state authorities prevent the transit of goods through their territory, it is permissible, with the approval of the company, to transfer them to another route. In that case, the loss shall be defined as the extra cost incurred by the exporter that cannot be claimed either wholly or partially from the buyer or others. If there is no other route to the buyer’s state or if the company does not approve of transfer of the goods then the loss shall be calculated according to the provisions of the previous article. Exclusion from Loss calculation Article (21) The amounts due to the exporter as monetary interests, and the amounts due to him as compensation or as a result of a penal clause in the export contract are not calculated as part of the indefinable. -14- Maximum Limit of Indemnification Article (22) 1- In case of occurrence of any of the risks covered by the guarantee, the maximum indemnification limit due shall be 80% of the total value of the loss for each application. The exceptions to this are losses resulting from the resale of goods in case of the buyer’s refusal to receive the goods, or their non-delivery because of commercial or non-commercial risks, or the losses resulting from the re-routing of the shipment due to the refusal of the transit state to allow the goods to pass through. In these cases, the maximum indemnity limit for each application shall be 50% of the value of the loss without prejudice to Article (8) of this contract. 2- The exporter shall assume the remainder of the loss without transferring it to or insuring it with another party. The total losses requested to be compensated for as a result of commercial risks during the period of the contract or any renewed period may never exceed 30 times the premiums paid for coverage of such risks, or the part representation these premiums from the non-refundable minimum payment. 3- Payment of the indemnity to the exporter shall not result in his exemption from any obligation arising from this contract. The Company’s Subrogation of the Exporter. Article (23) The company shall subrogate, within the limit of what it pays or agrees to pay as indemnification, the exporter that it indemnifies in his rights according to the export contract covered by the guarantee, as well as any rights that he acquires as a result of the risk’s occurrence. The rights in which the Company subrogates the exporter are transferred to it in all their properties. Supplements and securities. The exporter must complete all procedures necessary for the execution of such a subrogation and submit to the company all supporting documents that satisfy the conditions for their execution in the state where the risk occurred or where their authorities caused its occurrence. -15- Indemnification Payment Date Article (24) The company undertakes to notify the exporter in writing of its decision in respect to the indemnification and to make the specific indemnity amount available to him within a month from the expiry of the specified periods for the indemnification maturity or the fulfillment of the conditions for this maturity, whichever date comes later, provided that the indemnity not be paid until the procedures for the company’s subrogation of the exporter into his rights are finalized. Temporary Indemnification Article (25) 1- In case where indemnification payment depends on the issuing of a final court judgement such payment shall be delayed until the actual issuing of such judgement unless the company decides otherwise. 2- Until the above mentioned judgment is issued the company may make a temporary indemnity payment to the exporter equivalent to 50% of the final indemnity value in return for the submission of appropriate security accepted by the company if it deems it necessary. 3- However if he the law suit is conclude with no judgment or with the issuing of the judgment against the exporter or if the judgment entitles him to receive less then what he had received indemnity then he has to pay the company back what he had received temporary indemnity or what exceeds his right as the case may be in addition to the expenses incurred by the company within a month of being notified of the law suit’s termination or of the judgement. Transfer of the rights to Indemnification Article (26) The exporter may upon the company’s written approval surrender his right to indemnification in accordance to this contract to the bank or financial institution that financed his export . Such a transfer does not release the exporter from his obligation as specified in accordance to this contract. The company is entitled to plead aganist the transferee using all pleas it has against the exporter . -16- Disposition of the amount recovered from the loss Article (27) The exporter declares his acceptance that the company has priority over the exporter to collect its due from all what is recovered of the loss . He also undertakes not to collect indemnity for the loss has incurred according to article (22) until the company recovers all that it has paid in addition to the cost it has borne for the purpose of that recovery . The exporter also undertakes to reimburse to the company the amounts he obtains from any source representing on indemnity for that loss . Under all circumstances the company’s inability to achieve any return or indemnity from whoever caused the loss or his guarantor does not entitle it to recover the indemnity previously paid to the exporter or any expenses it has incurred for the purpose of loss recovery and does not exempt it from any of obligations under this contract . Distribution of payment for guaranteed and non-guaranteed operations Article (29) If there are other export operations conducted with the same buyer that are not included in the guarantee then the payments received by the exporter whether from the buyer or the guarantors or from any other person or source in fulfillment or his rights to the buyer and which are not meant for repaying the debt covered by the guarantee are allocated to the outstanding debt . However if the maturity dates of more than one debt coincide or if the payment was made prior to the maturity of either debt then the amount shall be distributed among the debt covered by the guarantee and the one not included in it in the proportion of the outstanding amount for each them and that without taking into consideration any contrary agreement made between the exporter and other parties . The exporter’s breach of his obligations Article (29) 1- The insurance contract is automatically cancelled without need for a warning or court’s ruling when : A- If the exporter hides any information does not declare it declares false information takes action or does not take it with the intention of misleading the company or effecting its obligations in accordance to this contract especially in respect to the true situation of the buyer or the quality of the securities relating to the debt or to its sufficiency. -17- B- If the exporter knowingly and in any way does not cover all of his exports to different markets with insurance or if he does not declare all shipments subject to the insurance without prejudice to the right of the company to collect the insurance premiums of the hidden transactions or the non declared shipments even if those transactions or shipments did not profit from the insurance. C- The exporter is repetitively in beach of his obligations mentioned in the contract or refuses to execute any of these obligations despite being notified to do so . 2- Beach by the exporter of the rules provided in Articles 13,23 and 30 will result in cancellation of the insurance of the transaction in which the exporter breached his obligations without need for warning or court’s ruling in this respect . 3- The insurance shall cease in relation to shipments in which the exporter is late in presenting his declaration for them in accordance with article 13 or in which he is late in paying the insurance premiums due for them . This obligation to pay the premiums shall remain in all cases and collection by the company of those premiums shall not be considered as relinquishment of its rights in accordance with this contract . 4- The exporter shall in all cases where the contract is terminated or the insurance cancelled or discontinued refund to the company the indemnities that he had received from it . 5- The company shall receive an indemnity for all due sums that the exporter is late in paying at three percent over the lending and discount rate declared by the Egyptian Central Bank and effective on the due date without need for notice or court’s ruling in this respect . Return Of Payments Previously Indemnified for (Article 30) The exporter shall return to the company all payments or compensation received from any source for losses incurred. That was already indemnified by the company and this within ten days of his receipt of such sums without need for warning notice or court rulings in this respect. -18- The Company’s right to Examine the exporter’s books (Article 31) The company is entitled to examine the data and books certifying the exporter’s activities to the extent required for the implementation of this contract. The exporter pledges to submit to all offices in charge of auditing his accounts, as well as banks he deals with, his permission to provide the company directly with any information that they have about the exporter’s activities. Bankruptcy of or Cessation of Activities by the Exporter (Article 32) The bankruptcy or stopping or suspension of the exporter’s activities shall result in the termination of this contract without need for warning, notice, or judgement. However, the company shall remain responsible for its obligation under this contract until the date of its termination. Applicable Force (Article 33) This contract is subject to the provisions of Egyptian Law. Notification Methods (Article 34) Any request or notification addressed from one party to another in the implementation of the provision of this contract shall be in writing. The request shall be considered submitted and the notification legally made if delivered at the address mentioned in this contract (or any modification of it ) during official working hours whether this be by hand, by registered mail with acknowledgement of receipt, or by cable. -19- Domicile of the Parties (Article 35) Notifications and notices related to this contract shall be addressed as follows: Export Credit Guarantee Company Of Egypt 10 Talaat Harb Street, Evergreen Building Telephone Fax as to the exporter , notifications and notices related to this contract shall be addressed as follows: …………………. …………………. …………………. …………………. Special Conditions …………………. …………………. …………………. …………………. …………………. …………………. …………………. …………………. Conflict resolution (Arbitration Condition) Conflicts that arise as a result of this contact or that are related to it shall be resolved by arbitration in accordance with Chapter Three of Book Three of civil and commercial procedural law. The conflict shall be settled by a body of three arbitrators one of who shall be appointed by the claimant for arbitration. The second one shall be appointed by the respondent within fifteen days of his receipt of the arbitration request. The two arbitrator who will preside the arbitration body. Should either party fail in -20- appointing a representative or should it be impossible for the two arbitrators to reach an agreement on the appointment of the third arbitrator within the defined period of time , then either party may request the appointment of the non appointed arbitrator from the judge of Urgent Affairs of the South of Cairo Court. The successor of any arbitrator who dies . Withdraws, or is dismissed shall be determined by the party who was originally responsible for appointing his predecessor. Each party shall bear the expenses of his arbitrator and the two parties shall share the expenses of the third arbitrator. The arbitration body shall resolve matters of arbitration expenses and accordance with its provisions. The company The exporter B) SPECIAL CONDITION Article 1 Type and Treaty Limits Type of treaty: Quota Share Treaty Limit: 4.000.000 USD for any risk being the aggregation of limits, both approved and discretionary, under all policies concerned. Territorial Scope Worldwide. Egypt excepted, Subject to the underwriting policy defined per country by the Reinsurer. Risks Covered A) Commercial risks: Pre shipment risks: - Insolv ency of private buyers: - Protec ted default of pub