Factoring

GENERAL TERMS
for insurance of commercial receivables transferred with a contract for
factoring against short-term domestic, market or non-market
commercial risk

I. GENERAL PROVISIONS AND CONCEPTS

Art. 1. “Bulgarian Export Insurance Agency” EAD (hereinafter referred to as ”
INSURER) insures against payment of insurance premium commercial
receivables from debtors of the Supplier transferred with a Factoring Agreement to
Insured by the Contractor arising from the sale contracts
goods / provision of services against commercial risk occurring in the territory of
Republic of Bulgaria / domestic / or from export / dispatches of goods / services
against non-market or short-term market risk under Framework
an insurance policy in accordance with these General Terms and Conditions.

Art. 2. These General Terms, the Framework Insurance Policy (called the Policy) and the
any additional agreements with it, the insurance application and all attached
to it documents and declarations of monthly supplies or services
represent one insurance contract and are treated together, each term or
an expression with a specific meaning in this agreement have the same meaning.

Art. 3. Basic concepts

(1) INSURER is “Bulgarian Export Insurance Agency” EAD.

(2) INSURED is the person who concludes an insurance contract with the Insurer
and has insurance interest. Insured may be a person registered as
trader under the Commercial Law of the Republic of Bulgaria. The insured provides
factoring services of the Contractor under the Factoring Agreement.

(3) A DEBTOR within the meaning of these General Terms and Conditions may be:
3.1. a person registered as a trader under the Commercial Law of the Republic of Bulgaria,
against which the Insured has trade receivables arising from a contract / order
for the sale of goods / provision of services concluded between the Debtor and the Supplier
transferred by a factoring contract from the Insured’s Provider; or
3.2. a person registered as a trader outside the territory of the Republic of Bulgaria in a country
with market risk against which the Insured has claims arising from the contract
for exports / dispatches of goods / services concluded between the Debtor and the Supplier
transferred by a factoring contract from the Insured’s Provider;
3.3. a person registered as a trader in a country outside the States designated as
countries with market risk, in a list promulgated in the State Gazette, against which
The insured has claims that arise from the export / dispatches agreement
goods / services concluded between the Debtor and the Contractor and transferred with a contract for
factoring from the Insured’s Provider;

(4) A DEBTOR is the person due to pay the Insured under the factoring contract.

(5) DEBTOR can not be:
5.1. in the case of commercial risk insurance, occurring on the territory of the Republic of Bulgaria –
a person acting in the name and on behalf of the Republic of Bulgaria as a public authority; or
any other government budget support organization for which it can not be applied
insolvency proceedings;
5.2. for insurance of market or non-market short-term commercial risk – foreign
state, state authority or state organization of a foreign state for which it can not
to apply a bankruptcy procedure.
(6) The insured and the debtor can not be related persons within the meaning of § 1 of the
Additional provisions of the Commerce Act.

(7) SUPPLIER is the seller who has concluded contracts for the sale of goods / provision of
services or contract for the export / dispatch of goods / services to the Debtor whose receivables,
arising from the Contract, transferred to the Insured under a factoring contract.

(8) SHORT-TERM COMMERCIAL RISK is the risk of non-payment of transferred
factoring contract concluded between the Contractor and the Insured, trade receivables from
debtors of the Supplier as a result of the execution of a sale contract
goods / provision of services or contracts for export / dispatches of goods and services with
a deferred payment period of up to 2 years, as a result of the advent of one of
covered risks under Section II, Art. 5 of these General Terms and Conditions.

(9) INTERNAL RISK within the meaning of these General Terms and Conditions is any commercial risk for a period up to
two years where the debtor under the contract for the sale of goods / provision of services is
person under Art. 3, item 3.1 of the General Conditions

(10) MARKET RISK within the meaning of these General Terms and Conditions is any commercial risk for a term up to
two years in which a debtor under the contract for the dispatch of goods / services is a person under Art. 3,
paragraph 3.2 of the General Conditions

(11) UNAUTHORIZED RISK within the meaning of these General Conditions is any commercial risk for a term
up to two years in which a debtor under the contract for export of goods / services is a person under Art. 3, p.
3.3 of the Terms and Conditions

0) MARKET RISK within the meaning of these General Terms and Conditions is any commercial risk for a period up to
two years in which a debtor under the contract for the dispatch of goods / services is a person under Art. 3,
paragraph 3.2 of the General Conditions

(11) UNAUTHORIZED RISK within the meaning of these General Conditions is any commercial risk for a term
up to two years in which a debtor under the contract for export of goods / services is a person under Art. 3, p.
3.3 of the Terms and Conditions

(10) CREDIT LIMIT (INSURANCE AMOUNT) is the maximum amount
Insurer coverage of payments on transferred claims in favor of the Insurer
Insured to a designated debtor at any time during the action of
the insurance contract.

(12) CONTRACT FOR THE SALE OF GOODS / PROVISION OF SERVICES OR A CONTRACT FOR CONTRACT
exports / dispatches of goods and services is an actual contract concluded between the Supplier and
Debtor for the supply of goods / provision of services or for the export / dispatch of goods
or deferred payment services up to 2 years.

(13) FAKTORING AGREEMENT is an agreement between the Provider and the Insured
its quality as a factor providing a factoring service within the meaning of Art. 2, para. 2, item 12 from
The Credit Institutions Act), with which the Provider transfers its trades
receivables for the sale price or the price for the provided service of the Insured, which
is obliged to collect it. Factoring is a take-off for the price under a sales contract
of goods / provision of services or export / dispatch contract, which is concluded for the purpose
collection of the trade receivable and cover the risk of insolvency of the
Debtor of the factor.

(14) INSURANCE PREMIUM is the price of the insurance service and is determined
by the Insurer depending on the risk assessment for the debtor, the covered risks,
the terms and conditions of the insurance contract.

(15) INSURANCE COMPENSATION is the reimbursement by the Insurer of
the damage suffered by the Insured as a result of an insured event in
within the limits of the credit limits agreed in the Policy. Insurance indemnity does not

may exceed 90% of the credit limit, unless otherwise agreed in the Policy.

(16) Self-Inclusion is the assumption by the Insured of part of the liability in case of
occurrence of an insurance event. The insured person is not entitled to conclude another
insurance for this title. The Insured’s participation is at least 10% of the amount of the Insured
any damage.

II. INSURANCE COVERAGE

Subject of the insurance cover

Art. 4. (1) The subject of the insurance cover under these General Terms and Conditions shall be
transferred with a contract for factoring trade receivables of the Insured by the supplier,
resulting from contracts for the sale of goods / provision of goods / services or contracts
for exports / dispatches of goods and services concluded under deferred payment terms to
2 years. With Special Conditions in the Policy, coverage may be agreed upon in others
payment terms.

(2) The insurance cover does not cover the receivables of the Insured under contracts
factoring when sales contracts are concluded under the conditions of:
1. 100% advance payment;
2. Letter of credit – irrevocable and confirmed by a bank, which has been licensed to conduct banking
activity under the Credit Institutions Act.

(3) The insurance coverage does not cover amounts that do not constitute a payment under
the meaning of para. 1, including interest for delay, penalties, fines and lost profits,
due in connection with non – fulfillment of the contract for the sale of goods / provision of
services or contracts for the export / dispatch of goods / services by the debtor.

Covered risks

Art. 5. The Insurer shall provide insurance cover for the claims of the Insurer
Insured under factoring contracts insured under the terms of the contract
in accordance with these General Conditions, an insurance contract against the following
risks:

(1) DEFICIENCY OF THE DEBTOR having the meaning of:

1. Announcement of the debtor in bankruptcy or opening of a procedure for declaring bankruptcy;
the debtor in bankruptcy by a court order, provided that the claims of
The factoring contract insured is included in the list of creditors of the
the debtor, drawn up by the trustee;

2. Announcement of the debtor in liquidation or initiation of the liquidation procedure
the debtor by a court decision or an administrative act, provided that the claims of
The factoring contract insured is included in the list of creditors of the
the debtor;

3. other judicial settlement of the debtor’s obligations, provided that the receivables of the debtor;
The insured are included in this court settlement;

4. outside the court settlement of the debtor’s obligations, provided that the claims of the debtor

The Insured is included in this out of court settlement and the Insured participates in
with the explicit written consent of the Insurer;

(2) DELAYING PAYMENT FROM THE DEBTOR, having the effect of delaying
payment due under a contract for the sale of goods / services or services
export contracts / dispatches of goods / services by the debtor for a lengthy period
of the period on waiting.

(3) The Insurer shall not provide insurance cover for the claims of the Insured
from Contractors for non – factoring factories, which risk is not subject to
the insurance coverage under these Terms and Conditions.

Excluded risks

Art. 6. Under these General Terms, this insurance excludes all direct or indirect damages
indirect damages resulting from the occurrence of a risk that is not a hedged risk within the meaning of Art. 5, c
this number:

1. non-payment by the debtor due to outstanding obligations of the Provider;

2. Unilateral termination of the contract for the sale of goods / provision of services or
of export contracts / dispatches of goods / services by the debtor in cases of non-compliance
of the Supplier’s liability for a reason for which he is responsible;

3. default, partial or inaccurate performance of the contract for the sale of goods /
provision of services or the contract for the export / dispatch of goods / services, or others
agreements concluded in connection with the performance of the contract by the Supplier, its
subcontractor or other persons with whom he or she is jointly or partially implementing the contract;
deliberate action or omission by the Provider or his agent,
obstacles to the execution of the contract for the sale of goods / provision of services, or
contract for export / dispatches of goods / services;

4. breach or default on the part of the Contractor, his or her representative, or
subcontractor, in the case of commercial risk insurance, occurring on the territory of the Republic
Bulgaria, of the applicable legislation in the Republic of Bulgaria, related to the implementation
the contract for the sale of goods or the provision of services or the performance of a contract
payments on it;

5. breach or default on the part of the Provider in the case of a market or insurance policy
non-market short-term commercial risk, to:
a) the legislation in force in the Republic of Bulgaria, in transit countries and states,
related to the execution of the export / dispatches agreement or the execution of the payments
on him;
(b) the provisions of Special Section, Chapter 8, Section IV / Bribery, of the Penal Code
The Republic of Bulgaria, including acts of the Government or other administrative ones
authorities dealing with the fight against bribery, including the bribery of foreigners
officials in international business transactions where this is related to the preparation,
the conclusion and performance of the contract for the export / dispatch of goods and services;

6. Breach or non-performance by the Insured, his / her representative or
subcontractor of:
(a) the legislation in force in the Republic of Bulgaria relating to the performance of the contract

or factoring or making payments on it;
(b) the terms of the insurance contract;

7. Force majeure due to natural forces or human activity such as:
earthquake, volcanic eruption, flood, as a result of natural disaster, hurricane,
a fire with the nature of a natural disaster and other events of comparable effect; ionizing
radiation or contamination with radioactive or toxic substances or wastes, and others
environmental disasters;

8. Political events such as: war, revolution, coup, civil unrest, strikes and
other events with comparable effect; declaring a common moratorium on payments or
changes in the payment regime; adoption or amendment of statutory instruments; or
decisions of a government or other body that prevent the implementation of the
obligations under the contract for the sale of goods / provision of services or the contract for
exports / dispatches of goods and services.

Date of occurrence of the insured event

Art. 7. (1) As of the date of occurrence of the insured event occurring as a result of
the occurrence of covered risk under these General Terms is considered as follows:

1. the date of announcement of the court decision in the Commercial Register in the case of Art. 5, para. 1, p.
1 or 2, or the date of the judicial act in the case of Art. 5, para. 1, item 3, or the date of
extrajudicial act in the case of Art. 5, para. 1, item 4.

2. the date on which the waiting period expires in the case of Art. 5, para. 2. The period of
Waiting time is 4 months, unless otherwise agreed in the Policy. The beginning of the period
Waiting is the date of receipt by the Insurer of a late payment statement
payment under Art. 18, para. 1 of these General Terms and Conditions.

3. In cases where the Insured has sent a late payment declaration
under Art. 18, para. 1 of the present General Terms and Conditions and there is one waiting period in the waiting period
of the insurance events under Art. 7, para. 1, item 1, the date of occurrence of
the insured event is determined under Art. 7, para. 1, item 1.

(2) Where the waiting period expires after the expiry of the
the insurance contract, the occurrence of the insured event is considered by the Insurer
in fact, provided that the relevant commercial invoices were issued in the period
of the validity of the insurance contract and transferred with a factoring contract of
Insured. Such an insured event shall be deemed to have occurred as a result of
the realization of a risk covered by the policy and for which the Insurer owes it
insurance indemnity in the presence of the prerequisites under these General
conditions.

Credit period

Art. 8. (1) For the purposes of these General Terms, a credit period is the period from the date of
issuance of the invoice by the supplier under the contract for the sale of goods /
provision of services or contract for the export / dispatch of goods / services,
transfer ownership of the goods until the date of payment of the goods agreed in the contract.
The maximum credit period for each debtor is indicated in the Policy.

(2) When payment for services is due, the credit period is the period of
the billing date of the service until the payment date agreed in the contract
provide services.

(3) The insured may extend the credit period for each individual payment to
the maximum credit period specified in the Policy for the debtor concerned, if it is not
otherwise agreed in the Policy, informing the Insurer within 3 days from
the date of payment initially set.

(4) The insured shall be obliged in advance to obtain the written consent of
Insurer to extend the maximum credit period accepted for insurance
each debtor. The Insurer has the right to review the terms of the Policy if

accepts insurance transferred to insured claims under an extended contract
maximum credit period. In the case of an extension of the maximum credit period
the extension has an effect in the future.

A credit limit

Art. 9. (1) Determination of credit limit.
The credit limit and the period of its validity for each debtor are determined by
Insurer based on the insurance claim. The determined, in Bulgarian leva,
the credit limit and the period of its validity are stated in the Policy.

(2) Increase in credit limit.
The insured person has the right in writing to request an increase in the credit limit for each
debtor. The Insurer shall consider the Insured’s application and at its discretion
raise or refuse to raise the credit limit. The insurer is obliged to write in writing
informed the Insured of its decision.

(3) Decrease or withdrawal of credit limit.
The insurer is entitled, when changing the nature and extent of the risk, to lower
or withdraw the credit limit for each debtor. For Lowering or Removing
Credit Limit The Insurer is obliged to notify the Insured in writing.
The originally set credit limit remains in effect until the date of receipt
notification.

Amount of insurance indemnity

Art. 10. (1) The insurer shall be obliged, upon the occurrence of the insured event, in
result of the occurrence of the risks covered by the Policy to indemnify the Insured for
any damages recognized by the Insurer in the limits agreed in the Police.

(2) The percentage of the insurance indemnity shall not exceed 90% of any damage,
unless otherwise agreed in the Policy.

(3) The uninsured percentage of the risk is borne by the Insured and can not be
transferred to another insurer.

(4) In the event that the sum of all damages caused by a debtor exceeds the amount
the credit limit (insurance amount) set out in the Policy for the respective debtor,
The Insurer undertakes to indemnify the Insured up to the maximum permissible amount
of the credit limit, according to Art. 3, para. 10.

5) Upon occurrence of an insured event in respect of receivables of the Insured
under factoring contracts executed under the terms of this Framework Policy
against a debtor who, at the time of entry into force of this Framework
policy has current, but insured under the terms and conditions, obligations to
insured, then the liability of the Insurer upon payment of the due
insurance compensation is limited and at the same time can not be more than
the remainder of the maximum amount of insurance indemnity payable under the
the framework policy, during the period of validity of which, the aforementioned current obligations
have arisen, nor more than the maximum amount of insurance due
compensation under this Framework Policy.

III. INSURANCE POLICY

Conclusion of an insurance policy

Art. 11. (1) The insurance policy is an inseparable part of the insurance contract and shall be
concludes in writing.

(2) The police shall be issued on the basis of a request for insurance in a form, made in writing
to the Insurer by the insurance claimant in which the latter is required to indicate
any circumstances known to him or in due care could have been
they are known and relevant to the assessment of the size and nature of the risk and to
the conclusion of the insurance contract. Conscious or negligent
non-fulfillment of this obligation by the Insured, the Insurer is entitled
to refuse to pay part or all of compensation if incorrectly declared or
the silent circumstance has had an impact on the occurrence of the insurance
event.

(3) The period of validity of the insurance contract shall be stated in the Policy.

(4) The Policy shall enter into force at 00.00 on the date indicated therein and provided that it is paid
minimum premium. The policy expires at 24.00 on the date specified therein.

(5) The Insured shall immediately notify the Insurer in writing of a change of the
Instructions in the Police Address and to notify the Insurer of your new address. Until receipt
of the notice of change of address by the Insurer the messages sent
by him at the address of the Insured, declared in the policy, are considered to be served and received by
The insured with all legal and insurance contract legal
consequences.

Art. 12. (1) The insured shall be obliged to offer for insurance all receivables
resulting from the factoring agreement with the relevant supplier and approvals from the
The insurer debtor, executed during the period of action of the Police and responding to
the terms and conditions set forth therein and these Terms and Conditions. Failure to do so
Obligation The Insurer has the right to adjust the due insurance
compensation with a coefficient obtained as a ratio of the paid premium to the whole
premium payable for the supplies or services provided, corresponding to
conditions specified in the Policy.

(2) The Insured shall be obliged to notify in writing the Insurer in writing about all material matters
circumstances leading to a change in the nature and extent of the risk to the debtor

immediately but no later than 3 days after becoming aware of them. Essential are considered
the circumstances for which the Insurer has put a written question. With conscious or
due to a negligent breach of this obligation by the Insured,
The insurer has the right to refuse partial or full payment of compensation if
inaccurately declared or unthinkable circumstance has had an impact on the occurrence
of the insured event.

(3) Upon change in the nature and amount of the risk, the Insurer shall have the right to review
the conditions of the Police, including its termination.

Amendment and addition of the Policy

Art. 13. All amendments and supplements to the Insurance Contract are made under
mutual agreement between the Insurer and the Insured in writing.

Terminate the Policy

Art. 14. (1) Except for reasons stated in the law, the Policy shall be terminated in the following
cases:

1. By mutual consent between the Insured and the Insurer expressed in writing
agreement. The date on which the termination of the insurance contract takes effect
is indicated in the agreement.

2. Unilaterally by the Insurer as of the effective date of the insurance
contract and without the right to reimbursement of the insurance premium in the event of non –
obligations under the insurance contract or attempted fraud.

3. Unilateral from the Insured until 7 days after its conclusion, such as the Insured
has notified the Insurer in writing of this, provided that he has not and will not have any claims
for the payment of insurance indemnity. In this case, the Insurer holds 10%
of the minimum insurance premium paid to cover administrative costs.

4. When opening a procedure for declaring Insured the Insolvency or
liquidation, special supervision or termination of business. Date
the termination of the Policy shall be the date of the judgment or other act,
certifying the occurrence of these events.

(2) The Insured shall be obliged to notify the Insurer in writing at the latest within 7 days
from the occurrence of the listed events under para. 1, item 4. The insurer shall not be released from
its obligation to pay compensation for the transferred claims on the insured
contracts for factoring made until the date of termination of the Policy.
The Insurer, at its sole discretion, may leave the Policy in force, reserving the right
to revise the terms thereof.

(3) If the Insured has consciously declared inaccurately or has ceased to be circumstantial,
which the Insurer would not have concluded the contract if he had known of it, the Insurer
may terminate the contract. The insurer may exercise this right within one month
from the knowledge of the circumstance. In this case, the Insurer retains the paid
premiums and has the right to claim their payment for the period until termination of the contract.

(4) If the knowingly declared incorrect or unthinkable circumstance is of such nature,

is the Insurer would have entered into the contract, but under other conditions he may request
its amendment. This right may be exercised within one month of becoming aware of
the circumstance. If the Insured does not accept the proposal for a two-week change
from the date of its receipt, the contract shall be terminated with the consequences under par. 3.
Insurance premium and fees

Art. 15. (1) The insured shall be obliged to pay an insurance premium for the worn by
Insurer’s risk. The amount of the insurance premium is indicated in the Policy.

(2) The insurance premium payable by the Insured shall be calculated on the basis of
the monthly statements of transferred claims in favor of the Insured under the
insured factoring contracts.

(3) The insured shall be obliged to pay the insurance premium at the latest within five days
from the receipt of the account issued by the Insurer.

(4) In case of failure to pay the current premium, the Insurer may amend the terms and conditions
contract or to terminate it unilaterally. The insurer may exercise these rights not
earlier than 15 days from the date on which the Insured received a written warning. IN
case of termination of the contract The insurer shall not owe the return of the paid to
premium premium.

(5) Upon the conclusion of the Policy, the Insured is obliged to pay a minimum
an insurance premium set by the Insurer to cover administrative costs
costs. The insurance premium, calculated on the basis of the monthly declarations submitted
of the Insured shall be deducted from the paid minimum insurance premium up to its
exhaustion. The minimum insurance premium payable by the Insured is calculated
on the basis of 100 (one hundred)% of the credit limits approved by the Insurer, unless it is
otherwise agreed. In case the accrued insurance premium for the period of operation
the Policy is lower than the minimum insurance premium, the remainder is not returned
of the Insured. The minimum insurance premium on the insurance will be paid
within 5 days of the date of the conclusion of the Policy, unless otherwise agreed in
The policy.

(6) Deferred contributions from a minimum insurance premium shall become immediately payable
in the event that the insured event occurs before they are fully repaid by
Insured. If you consider, the Insurer may withhold the amount of the outstanding
contributions from a minimum insurance premium from the amount of the insurance indemnity.

(7) Upon submission of an insurance application, the Insured shall be obliged to pay a fee for
the setting of a credit limit for each debtor, according to the Insurer’s Tariff.
The insured is obliged to pay a fee for updating the credit limit after
concluding the Policy if he has requested an increase of the credit limit under Art. 9, para. 2

Declaring monthly deliveries or services

Art. 16. (1) The insured shall be obliged within 10 days from the beginning of each month to
has submitted to the Insurer a model statement for all transferred receivables in
benefit of the Insured, effected under the insured factoring contract during
the previous calendar month. In case of delay in the execution of this obligation
The insurer has the right to refuse to accept the unsecured
the specified delivery times in relation to the transferred receivables.

(2) In the event of an insured event occurring in respect of claims under

not declared with a declaration under para. 1 and not accepted for insurance by the Insurer,
The insurer does not owe the payment of insurance indemnity.

(3) The Insurer reserves the right to perform periodic inspections for the purpose
verifying the authenticity of the declared data.

IV. EXPECTED INSURANCE EVENT

Notification of expected insurance event

Art. 17. The insured is obliged to act with the care of a good trader in view
preventing and limiting the possibility of occurrence of insurance
event, by coordinating its actions with the Insurer and performing the given by him
instructions. In case of non-fulfillment of this obligation, the Insurer has the right to refuse,
in whole or in part, the payment of compensation.

Art. 18. (1) The insured shall be obliged within 30 days from the date of payment overdue
to submit to the Insurer a declaration on a form for late payment. In case of delay
in the performance or non-performance of this obligation, the Insurer has the right to refuse,
partially or wholly, the payment of compensation for the unrecognized within the specified period
overdue receivables of the Insured under factoring contracts.

(2) The insured shall be obliged in case of overdue payment:

1. Send at least two reminders to the debtor by the time of submission
declaration of overdue payment under para 1;

2. Take the necessary legal and factual action needed to
receipt of overdue transferred to the Insured Receivables under contracts for
factoring according to the factoring agreement and the provisions of the current one
legislation.

3. Not to participate without the explicit consent of the Insurer in settlement arrangements
the overdue payment;

4. Not to deny without the express consent of the Insurer of its rights, warranties, and
other collateral related to late payment, and transfer them to
third parties;

5. Take all necessary measures to maintain its rights against the debtor, his
guarantors or other third parties.

(3) In case of breach of the obligations under the preceding paragraph, the Insurer may partially
or to wholly refuse to pay an insurance indemnity.

(4) Upon receipt of the notification under para. 1 of this Article, the Insurer may
to withdraw the credit limit of the Insured to the respective debtor. In this case,
the effect of the insurance policy on the arrears transferred to
Insured receivables under factoring contracts for which a declaration for
overdue payment by the Insured is not terminated. The insurer does not

indemnifies the Insured for damages under factoring contracts made after this
moment.

(5) Upon receipt of information on an expected insurance event, the Insurer,
with the permission of the Insured, may take action to prevent
or limiting the amount of the damage. The insured is obliged to assist the
The insurer by providing him with all the documents held in connection with
the conclusion and performance of the factoring contract and the contract for the supply of goods /
provision of services or the export / dispatches agreement provided by /
The Provider, as well as any collateral and / or warranties, so as to be
ensure that the Insurer can take legal action in a timely manner and / or
actual action to obtain overdue receivables and limit the amount of
damage.

(6) The aforementioned in para. 5 rights of the Insurer shall also apply to damage
or parts thereof, which are not covered by the Policy, provided that such damages are
arising or related to factoring contracts and contracts for the sale of goods or services
provision of services covered by the Insurance Policy.

Costs to prevent and limit damage

Art. 19. Any costs previously incurred by the Insurer related to the Insurer
preventing and limiting the possibility of occurrence of insurance
an event shall be borne by the Insurer and the Insured in accordance with the assumed by each of
percentage of the insured risk specified in the Policy.

V. SETTLING DAMAGE

Claim of insurance indemnity

Art. 20. (1) Upon occurrence of an insured event, the Insured shall be obliged:
1. Send the Insurer within 14 days of the occurrence of the insurance
event, claim for insurance compensation for arrears transferred to
Insured receivables under factoring contracts in chronological order from the due date
and by a form drawn up by the Insurer. In case of non-observance of this term the Insurer
has the right to refuse partial or full payment of the insurance indemnity.

2. To deposit within the term under item 1 before the Insurer a claim for insurance
indemnity / model of the Insurer / together with the following documents:

 Copy of contract with the debtor and / or order – certified with the original
copy;
 Claimed and insured invoice (s), as well as the accompanying delivery
Documents / Receiving Protocol; quality certificates, in case
the performance of the delivery required, the supply of such, etc. / – certified for
faithfulness with the original copies;
 Confirmation of receipt of goods or services under the delivery contract by a party
the debtor – certified true to the original copy;
 A certified statement of the Insured’s accounting system with the original
for amounts received by the debtor for the period: from the date of issue of the claimant
invoice until the date of the occurrence of the insured event. In cases where
the invoices claimed are more than one, the extract from the accounting system

is intended to cover a period starting from the earliest date of issue
invoice from the Provider that is insured by the Insurer;
 Reminder letters drafted by the Insured to the Debtor with respect to
due receivables, as well as a document proving their sending / acc. Art. 18, para. 2
item 1 of the General Conditions / – Originals;
 Additional collateral and / or guarantees on the insured receivable;
 Documents on an existing objection of inaccurate qualitative and / or quantitative
performance of the insured supply / service;
 In the event of an insurance event under Art. 5, para. 1:
– In the cases under Art. 5, para. 1, item 1, 2, 3 of the General Conditions – Judgment
or any other court document certifying the occurrence of the
the insured event – certified true copies with the original;
– Document certifying the inscription of the Insured ‘s claims in
the list of creditors of the debtor under Art. 5, para. 1 of the Terms and Conditions –
a certified copy of the original;
– In the case of open insolvency proceedings, a list is presented
with the receivables accepted by the trustee under Art. 686, para. 1 of the CP and / or a list of
receivables additionally accepted by the trustee – certified true to the original
copy;
– In the case of insolvency proceedings being suspended simultaneously with
the decision to open insolvency proceedings is not presented
document certifying the entry of the Insured’s receivables in the list
of the debtor’s creditors – certified copy of the original;
– In the cases under Art. 5, para. 1, item 4 of the General Terms and Conditions, notarized, in
the debtor’s country, a document on the out-of-court settlement of his
obligations.

The insurer has the right to request an internal statement and the Insured is obliged
to submit the originals or a notarized copy of the original in reasonable time
the above documents, which he has deposited with the Insurer in the form of
certified true copy of the original. Once the Insurer has done the internal
finding through its competent officer the originals of the documents are
return to the Insured.

3. Provide access to the Insurer or Authorized Representative to all archives,
accounting documents, evidence and other information regarding the claim
for the damage and to cooperate with the Insurer to clarify the reasons that led to this
damage.
4. Exhaustively list all rights, warranties, and other collateral related to
overdue payment.
5. Ensure the proper exercise of all rights, warranties, and other safeguards
against third parties by presenting in time all the possessed documents and executions
all formalities for the enforcement of the rights against third parties. Otherwise
The insurer may refuse partial or full payment of the insurance
compensation.
6. To prove the fulfillment of the supplier’s obligations under the sale contract
goods / provision of services or under the export / dispatches agreement and to submit
the necessary documents proving the acceptance of the goods or the provision of the goods
the debtor’s services.
7. Indicate the measures taken to prevent or limit the amount of
damage.

(2) The insurer shall have the right to assess and request additional documents with a view to
proving or certifying certain circumstances of the insured
contract / order having a direct bearing on the performance of its obligations
the insured and / or debtor, or their amendment.

(3) The burden of proving the date of occurrence and the type of the insured event, in
relationship with which the Insured claims insurance indemnity is of
Insured. The Insured is obliged to submit to the Insurer documents,
proving the date of occurrence and the type of the insured event. Failure to comply with
The Insured of the obligation under the preceding sentence shall be deemed by the Insurer to be
considerably in view of his interest.

(4) Upon occurrence of an insured event, the Insurer shall be obliged:

1. Find out whether the event that occurred is the result of the advent of covered
insurance policy risk;
2. To determine the exact amount of the losses incurred and damages from the occurrence
accident;
3. Within one month from the filing of the claim for insurance indemnity and
submission of all necessary documents to settle the damage to pay
insurance indemnity.

(5) The term under para 4, item 3 shall be extended by the deadline for receiving the requested ones under the procedure of para 2
documents.

Insurance compensation

Art. 21. (1) The insurance indemnity for any damage shall be up to the amount specified in Art
The policy rate of insurance indemnity from the damage.

(2) When calculating the amount of damage, from the amount of arrears transferred to
Insured receivables on trade invoices are deducted:

1. all amounts received by:
a / debtor or third party;
b / realization of guarantees and other collateral under the contract for sale of goods /
provision of services or under the contract of export / dispatch of goods and services under which
the receivable is overdue;
2. undeclared and eligible under the Policy transferred to
Insured receivables on commercial invoices.

(3) In case of non-performance of the Insured’s obligation to offer for
insurance all transferred receivables under the Factoring Agreement with the specific
debtor, incurred during the duration of the Policy and eligible
and the present General Terms and Conditions, the Insurer has the right to adjust
the due insurance indemnity with a coefficient obtained as a
the premium paid to the entire premium due for those paid and eligible
the terms and conditions set out in the Contract Agreements.

(4) In case it is not possible to establish whether the amounts under para. 2, item 1, b. Quot; a & quot; and & quot; b & quot;
relate to insured or uninsured claims, these amounts shall be allocated
in proportion to their share in the total amount of insured and non-insured persons

receivables of the Insured under factoring contracts.

Art. 22. In the event that after the expiration of 6 months from the occurrence of the insured event
the amount of the damage can not be determined or there is a dispute over the performance of the contract
for delivery, the Insurer may pay compensation in advance at a specified by
its size. Where the definitively determined damage amount is lower than
the indemnity paid in advance The Insured is obliged to return the difference
together with interest within 15 days.

VI. INTRODUCTION OF INSURANCE RIGHTS (SUBROGATION)

Identifying a third beneficiary of the Policy

Art. 23. (1) At the conclusion of the Policy, as well as at any time during its operation
The Insured may, with the consent of the Insurer, designate a third party
person and upon the occurrence of an insured event the Insurer shall pay to
the third party entitled to the insurance indemnity. Transferring
the right to receive an insurance indemnity in favor of a third party does not
exempts the Insured from his obligations towards the Insurer.

(4) In the policy or supplementary agreement thereto, which determines the third
Beneficiary must indicate the name and address / registered office of
the same.

Entry into Insured’s Rights

Art. 24. (1) With the payment of the insurance indemnity, the insurer enters into
the rights of the Insured against the debtor – up to the amount of the indemnity paid and
the usual costs incurred in defining it.

(2) The insured shall be obliged to take all necessary measures in order to preserve his / her rights
against the debtor, his guarantors or other third parties after payment of the
insurance indemnity and assist the Insurer in the exercise of these
rights.
Reimbursement of the insurance indemnity paid
Art. 25. (1) The insured shall be obliged to inform and pay to the Insurer all
amounts received by the debtor or third party, or the realization of guarantees under the
transferred to the Insured Claims for which compensation has been paid.
Notification and reimbursement shall be made within 10 days of
receiving them.

(2) The amounts received under para. 1 shall be distributed between the Insured and the Insurer
according to the Commercial Law of the Republic of Bulgaria.

(3) In case it is not possible to establish whether the amounts under para. 1 refer to
insured or uninsured claims of the Insured under factoring contracts,
these amounts are allocated proportionally to their share in the total amount of the insured persons
uninsured claims of the Insured under factoring contracts.

Return of the paid insurance indemnity

Art. 26. The Insured is obliged to refund the indemnity paid by the Insurer,
in the case that it has been paid without due cause or in case of failure or failure
grounds. The insured must return within 10 days of the date of receipt
a written invitation by the Insurer to pay the insurance indemnity, together with
the statutory interest for late payment from the date of payment of the insurance
compensation up to the moment of its final payment.

VII. SUBSIDIARITY, DIGNITY AND CONFIDENTIALITY

Art. 27. The policy entitlements are extinguished with a three-year limitation period as from the date of
the occurrence of the insured event, according to Art. 378, para. 1 of the Code
insurance.

Art. 28. Disputes arising between the Insured and the Insurer will be settled on
agreement, and when this proves impossible – in the order of the civil
legislation of the Republic of Bulgaria by the competent court in Sofia.

Art. 29. The Insured and the Insurer are obliged to keep the information and facts,
which have become known to them in this capacity.

These General Terms and Conditions have been adopted by the Board of Directors of the Company with a Protocol

No 353 / 09.08.2017