Export Credit Guarantee Company Of Egypt

CONTRACT FOR THE GUARANTEE OF PAYMENT OF SERVICES
AGAINST COMMERCIAL AND NON - COMMERCIAL RISKS

This contract was made on…
Cairo -Arab Republic of Egypt

By and between:
First:
The Export Credit Guarantee Company of Egypt S.A.E existing by virtue of law No. 21 for 1992, having its head office at Cairo City, hereinafter referred to in this contract as "The Company" and represented by …………………………………………………………..
…………………………………………………..……………First party
Second:
…………………………………………………………… Hsereinafter
Referred to in this contract " the Guaranteed Party " and represented by ………………………………………………………
………………………………………………………….Second Party
Preamble
………………………………………………Having its head office in A.R. E. in which it practices its main activity submitted an application to the company requesting to guarantee payment of the contract concluded / to be concluded with ………………………Messrs. ……………….by which the application for the guarantee shall perform for their account for the benefit of the Debtor, for a total sum of ………………………the amount to be paid in advance shall be……………………………………., the remaining sum shall be paid in the manner and on the prescribed dates indicated in the above contract if the Company agrees to provide to the required coverage.
Therefore, the two parties agreed to conclude the contract with the terms and conditions stated hereinafter.

Clause 1 : Definitions
The terms in this contract shall have the correct meaning stated here before each term, unless otherwise indicated by the text.
1- The guaranteed party :
Shall mean the applicant for the guarantee who concluded this contract or whatever party who has presented in his name an application for the Insurance and responsible for the carrying out of all or part of the work, subject of the service contract, or any person employed by the Guaranteed party, or works under his supervision or carries out for his account a work required to be executed for the service contract, whatever, the nature or relation of said person to the guaranteed party.
2 - The service contract:
Shall mean the contract for carrying out or rendering a service to the debtor .
3- The Debtor :
Shall mean the party in the service contract for whom the service or
Services shall be rendered.
4- The importing country:
Shall mean the country in which the debtor resides and practices his activity .
5- The public Authority in any country:
Shall mean any ministry or ministries of the government or any entity in the municipality or any public juridical person, or any corporation or company considered as per the jurisdiction of the state, belonging to the public sector.
6- Currency of payment:
Shall mean the currency agreed upon for payment in the service contract.
7- Local currency:
Shall mean the currency of the importing country.
8- Rate of payment for the local currency:
Shall mean, the rate declared or acknowledged daily by the fiscal authorities in the importing country and which is applied to current payments. If the rate of exchange is variable or if it fluctuates on the same day, an average of the rates of exchange applied by the major banks in the importing country shall be applied. In case, there is a difficulty to obtain the rate of exchange on a specific day, the rate of the closest precedent day shall be applied.
9- Bankruptcy or insolvency:
Shall mean the issuance of a judgement for bankruptcy of the indebted party, or concluding a reconciliation contract protective from bankruptcy, or from any legal measure that will prevent the indebted party from managing his monies. Also, if it is resolved to dissolve by force, in case of being a juridical person, unless the dissolution is for the sake of re-structure, or merge with another juridical person, without affecting debtor's rights.
10- The company:
Shall mean the Export Credit Guarantee of Egypt.
11- This contract:
Shall mean the guarantee contract with its preamble and annexes constituting an integral part to the contract, and any amendments to its provisions, thereafter.

Clause 2: Object of contract
The object of the contract is to insure the guaranteed party against the risks stated in clause (5) by compensating him for any loss created as a results of a default by the debtor to fulfill his obligation to pay any monies due to the guaranteed party in accordance with the service contract or in connection thereto, and the amount of ……… representing the maximum credit limit granted by the guaranteed party to the debtor and agreed by the company .

Clause 3:Terms of contract
The contract shall cover non payment and will be effective as of the date of the signature by the debtor on the services purchase order -(provided services executed)- or debt note that proves the dues of the guaranteed party which are stated in the services contract. The contract shall be terminated upon completion and execution of services subject of the contract and the fulfillment of the guaranteed party of all his obligations .

Clause 4:Concession of service contract and subcontracting
The guaranteed party shall not without pervious written consent from the company, transfer the service contract to another party even if authorized by the debtor. Further, the guaranteed party shall not subcontract the execution of any services he is bound to carry out pursuant to the services contract unless authorized by the contract or with the consent of the debtor in the contract .
The guaranteed party shall inform the company in writing within ten days from contracting with a subcontractor.