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

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
a- 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.
c- 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.
d- 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.
e- 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.
8- 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.
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 .