L . C . C

Subject: report about Foreigner’s right to own real estate in Egypt (agriculture investment and real estate investment). The first topic: Foreigner’s right to own farmland and agriculture investment in Egypt: First: Foreigner’s right to own farmland: According article 1 of the Law No 15 of 1963: "the foreigner must not own farmland ". Farmland is land able to agriculture without reclamation. According article 10 of Law No 15 of 1963: "all contracts that violation this Law is absolutely void". Second: Foreigner’s right to invest in agriculture: According article 1 of the Law No 8 of 1997 investment law: “the foreigner has the right to invest in the field of reclamation desert for agriculture ". Conditions of agriculture investment are as follows: First condition: Prime Minister must issue a decree to allocate this land to the foreigner. Second condition: the foreigner must use modern methods of irrigation in farming. The second topic: Foreigner's right to own buildings and Real Estate Investment in Egypt First: Foreigner's right to own buildings for residential: According to article 2 of Law No. 230 of 1996: "the foreigner has the right to own buildings for residential ". Conditions of ownership are as follows: First condition: ownership must be at most two buildings all over Egypt. Second condition: the building must be at most four thousand square meters. Third condition: the building must not be of national Antiquities. Main office: 81 Osman's building -Mustafa Elnahas St- Nasr city - Cairo - Egypt. Tel: +202 23828815 Mob: +2 01111157717 Email: info@Lcceg.com www.Lcceg.com Fourth condition: the foreigner must not sell the building before the expiry of five years from the date of acquisition of the property. Second: Foreigner's right to own buildings for residential: According article 12 of Law No. 8 of 1997: "the foreigner has the right to own buildings for business without any limit ". Second: Foreigner's right to invest in real estate in Egypt: According article 1 of the executive regulations of Law No.8 of 1997: "the foreigner has the right to invest in real estate in new cities without any limit ". For further information please do not hesitate to contact us. Got your back Best Regards, Dr. Ahmed Said Founder & Managing Partner L.C.C Law Firm

QUALIFYING INDUSTRIAL ZONES (QIZ) A historic peace agreement in 1979 signed by the Egyptian President Anwar elSadat and Israeli Prime Minister Menachem Begin ended thirty years of conflicts. Peace made also diplomatic and commercial ties possible, like the establishment of QUALIFYING INDUSTRIAL ZONES through which Israel, Egypt and Jordan could export goods into the United States duty-free. • WHEN AND WHO: The 1996 West Bank and Gaza Strip Free Trade Benefits Act (P.L.104-234) amended and extended the U.S.-Israel Free Trade Area Implementation Act to permit certain products from qualifying industrial zones (QIZs) to enter the United States duty free. Jordan entered an agreement with Israel to work together and export to the United States with QIZ benefits; Egypt joined them in December of 2004. • WHY: The targets of the amendment are to build a strong economic relation between Israel and Egypt and reinforce peace in the Middle East and produce economic benefits for Jordan, Egypt, the West Bank and the Gaza Strip, allowing products jointly manufactured by Egypt, Jordan and Israel to enter duty-free into the U.S. market. • WHAT: Actually, the Egyptian QIZ established zones are 17 distributed in various regions (Greater Cairo, Alexandria, the Suez Canal Zone, the central Delta, Beni Suef and Minya). Egyptian companies working in QIZs are over 1000 and most of all produce textiles and clothing items because U.S. tariffs on this kind of products are relatively high. Other sectors producing in QIZs are: 1. Processed agricultural foods; 2. Machinery and equipment; 3. Base metals; 4. Chemicals; 5. Plastics; 6. Leather; 7. Raw materials like glassware, marble and granite. • HOW: Products can enter duty-free into the United States if material and processing costs incurred in a QIZ are total not less than 35% of the appraised value of the product. Egypt must put in at least one third of this value added (11.7%), Israel had to put the same percentage until 2007; then, the content requirement was lowered to 10.5%. • STATISTICS: QIZs had a big impact on Egyptian economy: o 35% of Egypt’s total exports to U.S.; o 53% of Egypt’s total exports of non-oil; o In 2018 à 877.9 USD millions was the total of exportations; o In 2017 à 751.7 USD millions was the total of exportations; o In 2018 à 17% increase of 2017 exportations. Most of all the companies, as we said, work with textile and clothing: o 95% of Egypt’s QIZ exports in 2018; o Chemical, minerals and fertilizers around 2% in 2018; o Processed agricultural foods, iron and steel, glass products around 3% in 2018. Egypt would like to increase the quantity of exports in 2019: o 15% increase à 1 billion USD. • OPPORTUNITIES: ¨ DUTY FREE MARKET ACCESS à Egypt can export duty free to the U.S., that represents world’s largest consumer market; ¨ SIMPLE AND FLEXIBLE REQUIREMENTS à 35% of the product’s value be manufactured in an Egyptian QIZ, with a minimum of 10,5% Israeli inputs; ¨ COMPETITIVE FACTOR COSTS à manufacturers and investors economical input costs are relative as other countries with similar market access; ¨ NO EXPORT QUOTAS à No limit of quantities; ¨ OPEN-ENDED VALIDITY OF THE PROTOCOL à Protocol hasn’t got a pre-set end date; ¨ EGYPT’S GEOGRAPHY à Central position for industry and commerce; ¨ LABOR FORCE à Large and competitively cost-effective labour force

Report

Subject: legal report concerning: Rules for the Egyptian Residence Visa with Working Permission:

First: Investor visa:

Second: Employee visa:

Legal report

First: Investor visa:

The Prime Minister's Draft Resolution No. (2310) of 2017 concerning issuing the Executive Regulations of Investment Law Issued by virtue of Law No. 72 of 2017:

Article (4): Subject to the provisions of the laws governing residence in the Arab Republic of Egypt, to grant non-Egyptian investors residency is subject to the following conditions:

- The investor should be a founder, shareholder or partner in a company or an establishment owner.

- The period of residency may not be less than year and not longer than the period of project.

The Authority's Board of Directors may add other conditions, subject to the consent of the Ministry of Interior.

The residence shall be cancelled when the investor exits (dissociates) from the company; or the company's registration is written off based on the company's liquidation or writing off the establishment's registration from the Commercial Register.

Second: Employee visa:

Investment Law No. 72 of 2017:

Article (8): An Investment Project shall have the right to employ foreign workers up to ten percent (10%) of the total number of Investment Project workers. Subject to the rules and controls laid down by the Executive Regulations of this Law, this percentage may be increased up to twenty percent (20%), should employment of national workers having the required qualifications be not possible. For some strategic projects with special significance as listed by a resolution of the SCI, exceptions from the aforementioned percentages may be made, conditional on providing training to the national labor. Foreign workers in Investment Project shall have the right to transfer their financial dues, in whole or in part, abroad.

The Prime Minister's Draft Resolution No. (2310) of 2017 concerning issuing the Executive Regulations of Investment Law Issued by virtue of Law No. 72 of 2017:

Article (6): An investment project shall have the right to recruit foreign workers within the limits of 10% of the total number of workers in the Project. This rate may be increased to 20% maximum of the total number of workers in the Projects, in the event it is not possible to hire national manpower that enjoys the required qualifications. A committee shall be formed under a decision issued by the Authority's Chief Executive Officer, comprised of technical and legal members and representatives of the competent authorities. The Committee shall settle the requests for increasing the rate stated for hiring the foreign workers, and its decisions shall be approved by the Authority's Chief Executive Officer. The Committee shall observe the following rules when researching the submitted requests:

1. Study the scientific qualifications and experiences of the foreign worker, and whether they are in line with licensed professions.

2) Seek the opinion of the competent authority supervising the economic activity practiced by the company or establishment, as well as the opinion of the competent security authority as required for national security.

3) Observe the principle of reciprocity in the State of the foreign workers, if any.

 4) The economic need and interest for the foreign experience.

5) The company or establishment needs of the specialists or consultants and the work circumstances therein, and the effect of approval or rejection to the production or investment. 6) The extent of providing employment opportunities to the Egyptian workers by the company or establishment.

7) The extent of the company or establishment seriousness to fulfill its previous undertakings and the extent of its observance of the provisions of law.

8) In case there are more than one foreign worker in the same specialty, the preference shall be given to the foreigner born and permanently resided in Egypt.

9) The obligation by the company or establishment permitted to use the foreign experts or technicians with assigning the Egyptian workers whose qualifications are in line with the qualifications of the foreign experts and technicians to work as assistants, provided that the foreigner shall be obligated to train them and prepare annual reports concerning their performance.

The foreign workers in the Investment Project shall have the right to remit their financial dues, in whole or in part, abroad in accordance with the rules as applicable with the Central Bank of Egypt.

For further information please do not hesitate to contact us.

Best Regards,

Dr. Ahmed Said

Founder & Managing Partner

L.C.C   Law Firm

Subject: legal report concerning: Customs duties and sales tax for supplies of machinery and utilities that import to the Egyptian market, especially in the following: 1. Customs duties and the sales tax on the machinery and utilities value. 2. Currency for customs payments and sales tax. 3. Terms (time-frames) for customs payment and sales tax, starting from the date of delivery and custom clearance; 4. Taxation of income of creditor's bank (of interest to be paid by borrower as well as export credit insurance). 5. Additional local taxes (governorate Alexandria). Legal report Firstly, the customs duties and the sales tax on the machinery and utilities value: 1. Customs duties on the machines and utilities: Is determined by the value of the customs duties on the machines and utilities, and according to the specific values in the Presidential Decrees: - Decree No. 481 of 2013. - Decree No. 14 of 2009. - Decree No. 93 of 2007. According to these decrees the tariffs value is divided on machines and utilities on several levels: Level I: Machines and utilities completely exempt from customs duties, example: textile yarn machines, sewing machines, textile drying machines. Main office: 81 Osman's building -Mustafa Elnahas St- Nasr city - Cairo - Egypt. Tel: +202 23828815 Mob: +2 01111157717 Email: info@Lcceg.com Fb:www.facebook.com/LegalCrisesConsaltantsLcc www.Lcceg.com Level II: Machines and utilities customs duties value by %2 of the total value (in the invoice price and all shipping expenses) as an example: fuel pumps, agricultural machines, papermaking machines. Level III: Machines and utilities customs duties value by %1 of the total value (in the invoice price and all shipping expenses) as an example: heating and evaporation and sterilization machines, distillation machines, electrical metal coating machines. Level IV: Machines and utilities customs duties value by %41 of the total value (in the invoice price and all shipping expenses) as an example: central centrifugal pumps. Level V: Machines and utilities customs duties value by %21 of the total value (in the invoice price and all shipping expenses) as an example: ovens, electric stoves, chop paper machines. Level VI: Machines and utilities customs duties value by 30% of the total value (in the invoice price and all shipping expenses) as an example: cooking machines. Note: please find attached: decree No. 481 of 2149, decree No. 14 of 2113, decree No. 93 of 2112, (including all customs duties value for all machines allowed into Egypt) in Arabic. 2. The value of the sales tax on machines and utilities coming into the Egyptian market: In accordance with Article No. 9of Law No. 44of 4334about sales tax: The sales tax value on machines and utilities is 10% of the total value (the price in the invoice and shipping expenses). Important note: Russian machines and utilities that export to free zones in Egypt are fully exempt from customs duties and sales tax according to article No. 23 of law No. 8 of 7991 about investment guarantees and incentives. Secondly: Currency for customs payments and sales tax: According to Article 22 of Law No. 66 of 4369 as amended by Law No. 461 of 2111, about Customs duties: the currency of payment of customs duties and sales tax of machines and utilities is the Egyptian Pound and calculated in accordance with the announced price by the Central Bank of Egypt at the day of payment. Main office: 81 Osman's building -Mustafa Elnahas St- Nasr city - Cairo - Egypt. Tel: +202 23828815 Mob: +2 01111157717 Email: info@Lcceg.com Fb:www.facebook.com/LegalCrisesConsaltantsLcc www.Lcceg.com Thirdly: Terms (time-frames) for customs payment and sales tax, starting from the date of delivery and custom clearance; 1. Customs duties: According to Law No. 66 of 4369 bout customs, in all case, must pay customs duties before the exit of machines and utilities from the port during a period of 41 days maximum. 2. Sales Tax: According to the decree of the Ministry of Finance No. 23 of 2111 about the rules of payment of sales tax on machines and utilities, there are three cases are as follows: First case: If this machinery and utilities will be used in the production of non taxable goods, the sales tax shall be as follows: - Half a per cent (0.5%) of the value of the sales tax of these machines and utilities at the temporary release of the competent customs. - The rest of the value of the sales tax of these machines and utilities in seven installments, the first installment will be after three years from the date of the temporary release. Second case: If this machinery and utilities will be used in the production of taxable goods, the sales tax shall be as follows: - Half a per cent (0.5%) of the value of the sales tax of these machines and utilities at the temporary release of the competent customs. - The rest of the value of the sales tax within a period not exceeding three months from the start of production. Third case: If this machinery and utilities will be sold in the local market, you must pay the sales tax for them before they leave the port. Fourthly: Taxation of income of creditor's bank (of interest to be paid by borrower as well as export credit insurance); Interest of export credit insurance: Interest rates vary from a bank to another: For example: 1. The interest calculated by Commercial International Bank in Egypt (CIP) on a letter of credit for import is 1.75% for the duration of credit, until the arrival of the consignment, in addition to one hundred dollars for administrative expenses. Main office: 81 Osman's building -Mustafa Elnahas St- Nasr city - Cairo - Egypt. Tel: +202 23828815 Mob: +2 01111157717 Email: info@Lcceg.com Fb:www.facebook.com/LegalCrisesConsaltantsLcc www.Lcceg.com 2. The interest rate calculated by Qatar National Bank of Egypt (QNB) in the letter of credit for import is 1.25% for three months, and then pays 25% for renewal every three months, in addition to one hundred dollars for administrative expenses. Fifthly: Additional local taxes (governorate Alexandria). 1. In accordance with Article 67 of Law No. 91 of 2005 about Income Tax: the Customs Authority must get 2% of the value of imports of machinery and utilities coming to the Egyptian market for trading as a deposit of income tax that deserve on them. 2. For other additional expenses to be paid for the port of Alexandria is as follows: - Storage flooring expenses. - Unloading expenses. - Security inside the port expenses. These expenses are estimated by the size of the container as follows: - 21 feet container estimated additional expenses about six thousand pounds for every 41 days. - 11 feet container estimated additional expenses about nine thousand pounds for every 41 days. For further information please do not hesitate to contact us. Best Regards, Dr. Ahmed Said Founder & Managing Partner L.C.C Law Firm

Subject: legal report concerning: Conditions for granting the Egyptian Residence Visa to a foreigner who owns a property in Egypt: Legal report First: Egyptian Law give the foreigner who owns a property in Egypt the right to get The Egyptian Residence Visa, in three kinds: 1- Granting a residence permit to a foreigner for a period of one year, renewable, in the event that he owns a property registered in Egypt with a value of no less than 100,000 USD. 2- Granting a residence permit to a foreigner for a period of 3 years, renewable, in case he owns a property registered in Egypt, the value of which is not less than 200,000 USD. 3- Granting a residence permit to a foreigner for a period of 5 years, renewable, in case he owns a property registered in Egypt, the value of which is not less than 400,000 USD. Second: Conditions for granting the Egyptian Residence Visa to a foreigner who owns a property in Egypt: 1- Pay 100,000 USD at least of the property price. 2- The foreigner must register the property ownership contract in the official Egyptian government Database. 3- A letter from the bank confirming the completion of the money transfer process from outside Egypt included the value of the amount in USD, and its equivalent in Egyptian pounds, and the transfer for the purpose of purchasing the unit indicated in the contract.  Third: Renewal of residency The foreigner must: Submit a letter proving his continued ownership of the property which he obtained the residency. For further information please do not hesitate to contact us. Best Regards, Dr. Ahmed Said Founder & Managing Partner L.C.C Law Firm