International Chamber 0' Commerce (ICC) International Court of Arbitration Mr Ayonh-Farid Michel Saab Claimant Mr Fadl Saab Clalmanl and The 0f Cyprus Respondent REQUEST FOR ARBITRATION 28 October 2014 MADKDUR LAW HIM QUINN EMANUEL UnuuHAm SULLIVAN UK LLP FOIA CONFIDENTIAL TREATMENT REQUESTED BY FBME BANK LTD FBME00000712 TABLE OF CONTENT Introduction............. ............... I. (I. III. .1 The Parties......................................................................................................... 2 A. The Claimants.............. .............................................................................. ..............2 B. The Respondent........... .......................................................................................... 4 Summary of the dispute................................... ........ ...4 A. FBME Cyprus........................................ 4 B. The taking of FBME Cyprus in two business days......... ............... 6 C. The management of FBME Cyprus under the Special Administrator................... 12 D. The actions taken by the Claimants to mitigate the effects of the situation,...,.......... ...................................................... ..................................... The 15 Treaty is applicable to the dispute........... ........... 16 A. The Claimants are investors under the Treaty............................................... B. The dispute arises out of an investment................................. .,.,..17 IV. The Republic of Cyprus has breachedthe Treaty.................................. 17 V. The Claimants are entitled to submit their disputeto ICC arbitration,....,.,...... ........... ,,,,,18 VI. A. The choice of ICC arbitration....... ........ B. The requirement to pursue amicable settlement prior to filing the Request for Arbitration has been met........................ ..16 ...,.,,.,,,.19 .,20 1. The Claimants have duly filed a notice of dispute........... .......................... 20 2. The Respondent has turned down all good-faith negotiations efforts from the Claimants waiving its right to a six-month negotiation period............................................ ......................... .................21 3. In any event, the Claimants have observed the three-month cooling-off period applicable through Article 5 of the Treaty.............. 25 Procedural matters............................................................................................. 29 A. 29 Constitution of the Arbitral Tribunal........ FOIA CONFIDENTIAL TREATMENT REQUESTED BY FBME BANK LTD FBME00000713 B. VII. The language and place of the proceedings................... Request for relief..................................................... FOIA CONFIDENTIAL TREATMENT REQUESTED BY FBME BANK LTD .................... ... 30 30 FBME00000714 Introduction 1. This Request for Arbitration is filed by Messrs. Ayoub-Farid Michel Saab and Fadi Michel Saab, the Claimants, against the Republic of Cyprus, the Respondent, in accordance with the Rules of Arbitration of the International Chamber of Commerce in force as of 1 January 2012 (the ICC Rules). 2. The Claimants bring this arbitration pursuant to the Agreement on the Reciprocal Promotion and Protection of Investments between the Republic of Lebanon and the Republic of Cyprus dated 9 April 2001 (the Treaty), which entered into force on 19 March 2003. The Republic of Cyprus' consent to arbitrate disputes under the ICC Rules is given under Article 12 of the Treaty. 3. This arbitration is a consequence of the Central Bank of Cyprus' decision to expropriate the assets of FBME Bank's branch in Cyprus (the Branch) and, as a consequence of the manner in which it sought to execute this decision, destroy the Bank. The Branch holds approximately 90% of the Bank's assets and liabilities. The international depositors of the Branch have been deprived of access to their assets for over three months whilst the liquidity of the Bank stood at 104% at the time the Special Administrator was appointed. 4. What is happening today is no less than an illicit expropriation in progress. This is the very reason why the Claimants request the immediate appointment of an Arbitral Tribunal to settle this dispute in a prompt and efficient manner. 5. The Claimants set out below (I) the particulars of the Parties, (II) a summary of the dispute, (III) the applicable Treaty under which the dispute is to be settled, (IV) the violations by the Republic of Cyprus of its obligations under the Treaty, (V) the right of the Claimants to resort to ICC arbitration, (VI) a proposal concerning the constitution of the Arbitral Tribunal as well as the language and place of the proceedings, and finally (VII) a statement of the relief sought. FOIA CONFIDENTIAL TREATMENT REQUESTED BY FBME BANK LTD FBME00000715 31 107. In any event - Order the Republic of Cyprus to pay the Claimants the full costs of the arbitration, including but not limited to compensation for all arbitrators' fees and costs, legal fees and expenses incurred by the Claimants in connection with the present dispute; and Order the Republic of Cyprus to pay applicable interests to any amount awarded until the Republic of Cyprus complies with such award. 108. The Claimants reserve their right to modify or supplement the claims and prayer for relief stated in this Request for Arbitration, to advance further claims, arguments, and prayers for relief and to produce further evidence (whether factual or legal) as may be necessary to complete or supplement the presentation of those claims, and to respond to any arguments or allegations raised by th e Republic of Cyprus. 109. For all the reasons set forth above, the Claimants respectfully request that the ICC register this arbitration against the Republic of Cyprus. 28 October 2014 Respectfully submitted. Philippe Pinsolle Roy Michel Madkour Thomas Voisin Rita Abouzeid Quinn Emanuel Urquhart & Sullivan UK LLP Madkour Law Firm FOIA CONFIDENTIAL TREATMENT REQUESTED BY FBME BANK LTD FBME00000745