TREATIES AND OTHER INTERNATIONAL ACTS SERIES 05-420 ________________________________________________________________________

INVESTMENT GUARANTIES Agreement between the

UNITED STATES OF AMERICA

and TUNISIA

Signed at Washington February 17, 2004

NOTE BY THE DEPARTMENT OF STATE Pursuant to Public Law 89—497, approved July 8, 1966 (80 Stat. 271; 1 U.S.C. 113)— “. . .the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence . . . of the treaties, international agreements other than treaties, and proclamations by the President of such treaties and international agreements other than treaties, as the case may be, therein contained, in all the courts of law and equity and of maritime jurisdiction, and in all the tribunals and public offices of the United States, and of the several States, without any further proof or authentication thereof.”

TUNISIA

Investment Guaranties

Agreement signed at Washington February 17, 2004; Entered into force April 20, 2005.

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 THEGOVERNMENT OF THE REPUBLIC OF TUNISIA;

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

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

HAVE AGREED as follows:

ARTICLE 1

As used in this Agreement, the following terms have the meaningsherein provided. The term "Investment Support" refers to any debt or equityinvestment, any investment guaranty and any investment insurance orreinsurance which is provided by the Issuer in connection with a project inthe territory of the Republic of Tunisia. The term "Issuer" refers to OPIC andany successor that is an agency of the United States of America, and anyagent 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'sactivities are governmental in nature and therefore:

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

2

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

(b) The Issuer, all operations and activities undertaken by theIssuer in connection with any Investment Support, and all payments,whether of interest, principal, fees, dividends, premiums or the proceedsfrom the liquidation of assets or of any other nature, that are made,received or guaranteed by the Issuer in connection with any InvestmentSupport shall be exempt from Taxes, whether imposed directly on theIssuer or payable by others, provided, however, that the Issuer shall besubject to Taxes in connection with the receipt of services other than legalor other specialized consulting services rendered to the Issuer inconnection with Investment Support. Neither projects receiving InvestmentSupport nor investors in such projects (whether or not such investors arereceiving Investment Support) shall be exempt from Taxes by operation ofthis Article, provided, however, that any Investment Support shall beaccorded tax treatment no less favorable than that accorded to theinvestment support of any other national or multilateral developmentinstitution which operates in the Republic of Tunisia. The Issuer shall notbe subject to Taxes in connection with any transfer, succession or otheracquisition which occurs pursuant to paragraph (c) of this Article or Article3(a) hereof, unless such transfer, succession or acquisition (i) occurspursuant to paragraph (c) of this Article, (ii) involves Taxes levied on theIssuer in respect of the registration of the transfer to the Issuer of title to realestate or the right to business operations (other than cash, accounts,credits, instruments or rights represented by share capital or other forms ofownership interests in a business entity) required under Tunisian legislation,and (iii) is not necessary in order for the Issuer to exercise its rights as acreditor or subrogee or transferee or successor in respect of a payment orexercise of such right in connection with Investment Support; provided thatobligations for Taxes previously accrued and unpaid with respect tointerests received by the Issuer shall not be extinguished as a result of suchtransfer, succession or other acquisition.

(c) If the Issuer makes a payment to any person or entity, orexercises its rights as a creditor or subrogee, in connection with anyInvestment Support, the Government of the Republic of Tunisia shallrecognize the transfer to, or acquisition by, the Issuer of any cash,accounts, credits, instruments or other assets in connection with suchpayment or the exercise of such rights, as well as the succession of theIssuer to any right, title, claim, privilege or cause of action existing, or whichmay arise, in connection therewith.

(d) With respect to any interests transferred to the Issuer or anyinterests to which the Issuer succeeds under this Article, the Issuer shallassert no greater rights than those of the person or entity from whom suchinterests were received, provided that nothing in this Agreement shall limitthe right of the Government of the United States of America to assert aclaim under international law in its sovereign capacity that is distinct fromany rights it may have as the Issuer pursuant to paragraph (c) of this Article.

3

(e) This Agreement shall not preclude the Government of theRepublic of Tunisia from requiring that investments and associatedactivities be established in accordance with the terms and conditions setforth in its legislation provided that such terms and conditions do not impairany right set forth in the Treaty between the United States of America andthe Republic of Tunisia Concerning the Reciprocal Encouragement andProtection of Investment, signed May 15, 1990, or any successor to suchTreaty.

ARTICLE 3

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

(b) Such currency and credits may be transferred to any personor entity and upon such transfer shall be freely available for use by suchperson or entity in the territory of the Republic of Tunisia in accordance withits laws.

ARTICLE 4

(a) Any dispute between the Government of the United States ofAmerica and the Government of the Republic of Tunisia regarding theinterpretation of this Agreement or which, in the opinion of either partyhereto, presents a question of international law arising out of any project oractivity 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 twoGovernments have not resolved the dispute, the dispute, including thequestion of whether such dispute presents a question of international law,shall be submitted, at the initiative of either Government, to an arbitraltribunal for resolution in accordance with paragraph (b) of this Article.

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

(i) Each Government shall appoint one arbitrator. Thesetwo arbitrators shall by agreement designate a president of thetribunal who shall be a citizen of a third state and whose appointmentshall be subject to acceptance by the two Governments. Thearbitrators shall be appointed within three months, and the president

4

within six months, of the date of receipt of either Government'srequest for arbitration. If the appointments are not made within theforegoing time limits, either Government may, in the absence of anyother agreement, request the Secretary-General of the InternationalCentre for the Settlement of Investment Disputes to make thenecessary appointment or appointments. Both Governments herebyagree to accept such appointment or appointments.

(ii) Decisions of the arbitral tribunal shall be made bymajority vote and shall be based on the applicable principles andrules of international law. Its decision shall be final and binding.

(iii) During the proceedings, each Government shall bearthe expense of its arbitrator and of its representation in theproceedings before the tribunal, whereas the expenses of thepresident and other costs of the arbitration shall be paid in equalparts by the two Governments. In its award, the arbitral tribunal mayreallocate expenses and costs between the two Governments.

(iv) In all other matters, the arbitral tribunal shall regulateits own procedures.

ARTICLE 5

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

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

(c) Upon entry into force, this Agreement shall supersede, withoutretroactive effect, the agreement on investment guaranties between theGovernment of the United States of America and the Government of theRepublic of Tunisia effected by exchange of notes signed on March 17 andMarch 18, 1959, as amended by exchanges of notes on January 22 andMarch 6, 1963 and May 10 and August 3, 1993, respectively. Any matterconcerning the Republic of Tunisia relating to support by OPIC ofinvestments in the territory of the Republic of Tunisia made after the entryinto force of this Agreement shall be resolved under the terms of thisAgreement.

Peter S. Watson Mohamed Nouri JouiniMinister of DevelopmenInternational Cooperati

5

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

DONE at Washington, on the 17th day of February, 2004, induplicate, in the English and Arabic languages, both texts being equallyauthentic.

•

FOR THE GOVERNMENT OFTHE UNITED STATES OF AMERICA

President and CEO

FOR THE GOVERNMENT OF THEREPUBLIC OF TUNISIA

J**L—i.11J N+.47-i4

liazi.41. I 4LiVi,511 4.4,51z,4-‘61,9:111 A71..).94-4+.► 1 Z4-9—S-%

;L:A4.,)44)11 DJ ..1.;.44 4:11%A. kk.01 1,9111 :t.4,5s412_,14t1 ;Ls .,,41.411 LA .4.14 j Lr.1 L.4,0_4 144:i

;

•

1.11—‘42:11V1 4J 19-411 0•*-9.4-1-11 J-1) 4A 1-)11 .4÷°-‘61.1111 ;11J.94"?"1/:1

:1+49:11 A") J9.11-4÷11q .44+11q 1;U:i4 11 .J4L4.1 CAA? 61411 1:110 CiL1 L4+1.4 1.S1 J.5) J

(451) " J1.41 j Lai 04U11 ►► JL:64.11• jSrl csi j .t41:1).4411 FLIZ:SAI. 1 _311 .41.511U ;LIU J aS.41.‘44 LrA J

j ZAL411 444L.4►.411 jth ;..11,Q) cj#4.JLA31441 114.4.41 9 (i.0 14)19 ' 1

LA (01G LlIkAl

•

0.51.A11 oil,Dk)1 ,$.11 ^L►►.^11 ;1#1. W. 1 ‘■.4. W1=4.44.411 4,114 j1j5V1J1 .. .41.4411 cri 4.4.41.4.411111 J1 0.-as)i c91 4.01 Oa..ILL42" C.1120.4%.4 j.14/4)1211 t.j. J141.41J r" C.):LA. 451,C, I J1 c: 1+411.A. (41 J1 J :L411.4.41. 1 ( ...)1A4C1 1

j-1.6" -9 4 u,, ii .4.1-)Sfg+11 e'3-)2.4`1 .12"41 `)"2.41141 J1 ;14 ‘1L+J..J411 0.1 11 Aar111 4)111 " Cr.11L4.4.4J ■44i1.11 J J..4:411 J.S 11 64.31,›.4.40" Cr.11:LACLA

►,j1

J c 1.444s2 cilt (14 JJ...4.4 .44A ;UAi 411 ,91 4+11.z.11 pl#Q 4i1 j j j.11

JS a-:1"49:1.11 4)3i-4÷21:1 °4)-411÷4 Ji "11-S.4.11".141. 1

2 ;41-4.11

Cj-4 Cji 4.4.1Q1.4Ak LIU C.)1.1.451.z.114-#4,51z 4.611i V.4.;a..0.1a

2ej-A.91.1 .4410 j.:2,9-4.0.1.411 y-,1.1.1 Jill (A j.1...,..a.411 4).111 &.4.:21;4. - IVI ‘1. L411 t;.'iL.AAA;411 ji c•.)+4. cL,L4.4.44 jL4.31.5 ji ji J.L4Gt41 t5i÷i &AA ‘=s11 Z11-111

c j..411.". 441 Et Clarl Ci.1.1i4. LAO: A_A V.IG cat.4,,,g.o 14,.9.1111 J.L.4011 &.4. all x,9÷zi j..1=11

41J141

▪

ji ji asliall (L'ILL4-44:1.411 az ‘114* 1.z 4;4.11

.4.1.-4.14.1S11 j L'4.14-1.4.9.31 j.1.-64.411 ej-4 -j1 .1:11 ji(;.)11.5 c4j.6.0 4i* j9.111 j 1 'i.L.1-6.44A ...A.L14-4' 11 ja+1 ,9i J,9,431 ji c.1.4 ji ji ji

ji 4111 ji j.1.4.41.411

o j.z.J14.4 *IA ulkji 1, _w4

J.1.4.4.411 4)=11 eji alC, c 0,.0%11 4,14 ji j.1-4..z.411 4)1:11

t;.,'1..4.11. 01.c 41.,44-N11 ‘1411.4 :t..6.4.1&14.41.4.* 11 ia#.11.2.A.11 (;i1 j.1.11." A-ha.S114-4.411 J-411$1 j As,4.11.111 O j1-Z'a41

t; 31 J 11 j..a 4.0-12:; j 441 i;111.-4,4.4." LA1 j Js.aaa114J1zL14:JJ'J.4.116,4.411 ui1 j.4...g111 C.).4 (Flaw V LAS j 1 N J...41.411

j1..41- 1 ;111-d. pV:.pt4 &i,j1-1.411 ati cri4A1 6111-wl.4 j-41 u„,10(L ja.A.

&A ;6.J.14.4 al1LA.4 "'X11 41:4 cis awl J-1: V .. .4-4.yj-4:0

1.4121.41; L 4 j1.4:1 jlaV1 '11.14 *.11.4 ji ;.L-wu&g.4jI j..6.1211 4111*A (E)

•

'JILL! (5,).11 ptztil .4.4.3.AQ ji .111.1L

J 1 ‘7111-1 1 1 J1 ja-1-1 1 cJ-45 1.1) (/) V) 4 44411 (1)3 *6%51_4 J14;411 j.-6:a cica j.4.11 j O.11-411 *Lk (s)'JAW 1.41 p1::41

J.9--i.A1?1'L' all jj-i.%.1 1 ji t;.,* 1 jt J4%N...6Zji 41.1.1.111 ji ji ..A.c6411 6.-11j14:4.11

CS.9" CiA cS,A 1 ji Owl.) La'-'1/4N-411 CS.9:W 1j (no .40 .4.1.11 &.)2L1 u412 ;4.9" ;L-."■=1 '1'. LA"..9A 4.1. 11.4.4;i1.4 4a4G ;LJ J..4 ja.44.411 4)4 -u4o 4114 J 4:0cya j..24, _91 t-a4 oda3-4.:14 1.41.91.4 J1 .4+11 11.14 Ji ji

Le.Z.L.H.'' Cji 4-41 ,) 1.4ZL. .411 01L4.44.4h1 . .11.4. IAS 11A ISLA ;Li.W ji.AA

crA J *I24. J .0:A11.44.y. 4:.1.41311' V1• ‘.5-1 ji ji j1.111V1 ailt,ti, julACIA1 i4)11.11 .144.1.C• LIACLZ. CIAGLA1

3(..).44 J1-4 JI 91 cjell...4 01) J.1-4.41.441 ‘.11 11)

c ;.1.1.0.4LA (41 u.a..9-4.414 J-3.4 `)11... Lja grii.s.al a9Jii,JI Ji 4a1" JI ji.4j's..1C.i JA-4;NI1

1:1+-.4.16 cs J.il j 91 ;4.1. J J i A.1.45 7).5_,.:1 j i4).611 LAs cji:s1' 4.15',ILA 4.1)..4.4 J i 4.4 }WI:tztlUatAll CAA.4 j1.4.41 ji ‘:,14111LA jI ji §..1. u41 j.44s4

.jaa9d.:1111 14; +2&j CAA?. ji ,ss 412.,0 J.; At.

41.1:1 cr.11.4a4 ji jaAa.411 4)1211 all cr.1La.4 1-40: -4:4111.411 J1444.11 4)1211 CA471. V 4 •51.41 0 :1+1 a.111 j 14.0.411 4j):111 441.

1+14 Lim= 46. 4:11:th j I cj.4%&01411. 1+1 &a.L.1/21 ko.J.11 1914Z1(DA SIV Ljel .L%:A. Ci jd14.1 c.11-4.4tAll 4ti cs1 jamziAll

.44-19111 a9.11.111 411.11.411 01 ;40A,AII Lii.41. 1 ("iti.V9114+-4= d Z41 CP . ..)+41- 4.0 11 16:144 ;L Q1-4-4 J11) csi

• • Et.11.441 C.}.4 (s) jilt! *la I j..1.4.4.A ti 4.11.4.a..1

u:a 6-4 .4.4.-44u1 J4.4..%11 tj--4:1 V -.6

Lidlk J...4414 4-.41).111 J .41)..41.411. 114.4)4 411—Z1.1‘11 j 4P

(s. 1 1 u.s,l y119 1=3,9J-3111 oik c.)4 4 .4-6:1..)A1 14-1-.1-ri4 4.s:9 1+-1.J11 J .6 .44449:111 JJ.AIN.11 Oyu 4ajs.4.11 2.141-9-41111 Ask, 4..).:a J.042.1A

41-4 15 tr..1 FA:i.s..0.A. j.4, -4=1

• 1+:1:I iiak 19-4 91 1990

S3 lickAil

ji cath al vi 1.411445111;L:wirA.,11 414 &14.411 cr.1.4uta ji J. ,,dn ;4411 c:434'il 9141;1X11 04_44 ji

.ka4.41..1 4 Mut..4.4 3**4) J1111 c).4

.444a4:111 F).1.1i1 ",31L,A1 J.17.4 Losi LA:ajial

LP-A2:.w4. u424 1-44 4414 J:1:1 "19:111 4711j4 Z141-1"91 ual.4111 j19.4411 4-9 i.4.411 ;LIALILAII Cp 411.,;z11. 1

C}A &144311

4:111 Ji u.:11-4.1 1 0-11 :WW1 J 41.42J1 AIL%) cAdy. 9.-ycjA J1.1 2J Z11.41 c;:9J."211 j 41147-11 o iuo c.;)

14x, d= 1:41 4-,1-1J:11 1 ;1...).5i-41N1 1 4711.):;-: 4L1' 1 11 1 -at 91 Lrcadill1

1:4111 :1-1.,),34-4+11 E1i-1 :1-1...‘z cJI-s4: 1 Js4 *4 -Iji juiv 11.16..4441.,).4V1 sazI.A.1* jcLOLL11.4 C4)4 C.)-4 c) 14,) C :LILA ociJL JAI

'1.411.6u. I ii.11.4.4 ji j 45.1L.N.& AT.13-44:1 (Du4** .3-c-%11 ola 11) 9 4 .04AA. .3/11 C) 1J.4 0:2JU:1aCJAA La.) e 1;11 c.):2 4:11}:a Ja%11 4..4112 &4a pI41 ,*.11 ‘,1

J-114.44 C 4.1,1111 LIOLI1 0414. tal J.1 Jia.4' Ji El Jill ejl.5&A ( 40 ;Jill! .1-4114 -1.-- .4.i.41.4) &41.3 ..91-%11 &-a 4. 1 V-4

O-51-421

J a,L.AIl oit) c..)-41 (1) a JILIL; 44. JI..41.411 .1.44 _ 4;41.4 14-1LAI

44.13 J j11171-; ejl:u4 *.c.J4L.4 J LASA J-C-% ‘35 ap:i (I)„0.*411 ;.1.114.41 Lvs.:01.1 j (:).411:1101,,.%

44. U J kbei a4441-N-11 "

. 03) P.9+121 C:1-1-4. J.5.-N11 CS* 6:121) la t1-44 / C)sa 1 P'1:1Loi ,AZ21 CAA:I. 0,),.0 1411 4;J. 11js.azu CA+An ,AT 41 ‘...1

JI • .1-041 I 0.1A 4:11 J1-4:14L, ' 41.MM

1121411 ,1.1)111

(Li '...I.A.142.111 4.3= JI o la J A..011J L.01_,-411 crla ;W 4.•J eL-4104 ZL.A. J I (H)

. 4AilA 9 :110-6-.3 LOU) 419.-C:1 9 ci.1,9111 &361.1-WI:21.9 A:24. . L1411 .1a 191.114Ji j j471 Js.6,+ o.L.a LiN.1(m)

.sas..tz11 j :4.1.1.4. 11 tal-41

LOWS 4p CiS-4:1 9 . ;114411-1-4 cs.AVI4:44' „ssAll u 4.-a".J1"4-411 g 'II. V-":41 a12 :I.

A.3.41-:%11 tL'ilpl,M1 4+11 It..1.4.71ii cs..)1VI j.iL.4.411 .14.% Lai (Iv)

5 S.A.A11

4,4,j5 ad: jp,i4 4 111 c>4 pI41 4121 .j4 L3ti:1`111 lip Vii, - i

J.41 'iaz:1.4.1' I "t-PI A.÷4-44.1.1' I 4..),..4A,%11114 1,:aka Z4iN11 4.1

L•).% j41 0.1) JLA - 61Pt .1) .4":14k)": tS.AV / 4". .351 ter:4.3'4:1 ;JS:"

i az.14.1 1 41. 1tekfril 4.4js,• ATA.J.111-4+.1 1 :1-4..9sa

44911 1

and.444 i LACS ;ULN11 4.41 j ju:q1 11At_41.3, 4tJL.w Jul* 114 cit.:, (.>■ eLLNIA

pt+;) :41Q+ 20 Sla jj4:LI cji JS 1411

.L.91-01

(nrsi-)J JJ.alA 4 4:1.9.1 L§LiCql 1:1-A 4-11th j1.4 iLati - c

.44),54.0411 „9S. CIIULArfasZ4464 JL.01

j."1-411 j 4.:11-4.911

3:1",)11 c31141-1*. 41---‘41.1."" 1-4s 1959 uw.)--4 18-17 tr-:i.j Le.:=14-411

1993 41A4 3 cs 1-4 10 Sit-4-,Q11 J.11-.41.1*. .9 1963 odAjt-4 6 4,1-i-t-.N 22

S .5.11..4.4A.4.1 Sp.:AA* " :L;A.,),94.*11 0.0.1:4* cJ...L11 IAIA+ j

9.&.1 ji..4;%11‘..11,):4 LrIc ‘Li1JC.44-4 4. ,94)/1

J1.01*1.410

al.:1114.14.‘1 a4m13.4.41 4. jt.i411:11A pls.116.41 6 all crl 144) j

CjakiLll 141 Za>11 ‘11 .1.4 1.44:111 tAk .11A jSA .L4+1Z3.4

a4:11-,A61 ‘.4-i 2004 .ct.ii'7!).)41-ZA* 4:)-4 17 11.9- (4-9%AI "21

411J1-wa4.. CJA J .A71,3.-114 1 .9 4:111t-.1