CLIENT SUBMITS APPLICATION FOR PERFORMANCE TO COVER THE FULL FACE VALUE OF THE INSTRUMENT UNDER THE LENDING AGREEMENT TRANSACTION CODE NUMBER XXXX.

THE CLIENT AGREES TO PAY FOR THE PERFORMANCE BOND PREMIUM OF 2,5% BY CASH SWIFT WIRE, BEFORE THE CONDITIONAL PAYMENT FOR THE LENDING FEES, IN ORDER THAT THE PERFORMANCE BOND IS BOTH IN PLACE AND ACTIVE BEFORE THE DUE DILIGENCE PROCESS BEING CARRIED OUT BY THE LENDER’S BANK COMPLIANCE OFFICER BY CONTACTING THE BANK OFFICER OF THE BORROWER.

THE BORROWER REQUESTS CONFIRMATION:

"COULD YOU PLEASE CONFIRM THAT AFTER COLLECTION TO BOOK THE INSTRUMENT AT THE STOCK EXCHANGE YOU WILL CONSENT TO:

  • THE PERFORMANCE BOND AS ASKED IN THE APPLICATION

  • PROVIDE THE CONTRACT AMENDMENT TO ALLOW TO ENCUMBRANCE AND PLEDGING OF THE INSTRUMENT

  • CONFIRMATION AS TO THE RECEIVING BANK MUST NOT UNDERTAKE TO RETURN THE INSTRUMENT"

PERFORMANCE BOND

[TO COVER RISK OF INSTRUMENT NON RETURN AT THE END OF LENDING PERIOD]

PERFORMANCE BOND NUMBER: .

(THE BORROWER) J A COMPANY INCORPORATED UNDER THE LAWS OF ___________ WITH A DESIGNATED OFFICE IN ____________ , MUST GUARANTEE THE AMOUNT OF EUR ___________ EURO ___________ ONLY), WHICH IS THE AMOUNT OF THE PERFORMANCE BOND REQUIRED FROM WITH A DESIGNATED OFFICE IN _____________ , IN FORCE OFTHE G.S.M.L.A. UNDER TRANSACTION CODE ________ DATED ____________ .

IN ORDER TO FULFIL THE PROVISION OF (THE BORROWER)_______________________ FOLLOWING THE TERMS AND CONDITIONS OF THE SAID MENTIONED CONTRACT, PROVIDED THAT THE BORROWER FAILS TO FULFIL THE PROVISIONS OF THE ART. 10 OF THE ABOVE MENTIONED AGREEMENT WE, THE AUTHORIZED SIGNATORIES AND REPRESENTATIVES OF (COMPANY WHICH ISSUE THE PB), HEREBY REPRESENT AND DECLARE FOR AND ON BEHALF OF (THE BORROWER) J THAT WE SHALL PAY THE AMOUNT OF EURO ___________ ( EURO ___________ ONLY) PROMPTLY AT FIRST WRITTEN DEMAND WITHOUT ANY DELAY TO (TH E LENDER) WITHOUT ANY NECESSITY TO ISSUE LETTER OF WARNING, PROCURE COURT ORDER AND TAKE THE PERMISSION OF THE SAID CONTRACTOR AND IRRESPECTIVE OF ANY DISPUTE THAT MAY ARISE BETWEEN THE PARTIES OF THE ABOVE MENTIONED CONTRACT.

THIS PERFORMANCE BOND SHALL REMAIN VALID FOR THE PERIOD OF ONE YEAR PLUS 10 DAYS, FROM ATTACHED INVOICE NR ____________ SWIFT WIRE TRANSFER RECEIPT ON OUR ACCOUNT, AND SHALL BECOME VOID IF WE DO NOT HAVE ANY WRITTEN CLAIM FOR INDEMNIFICATION WHICH MAY RECEIVE UNTIL THE SAME DATE.

IN THE EVENT OF INDEMNIFICATION UNDER THIS PERFORMANCE BOND, THE SUM OF PERFORMANCE

BOND, WHICH IS EUR ___________ ( EURO ___________ ONLY) SHALL BE PAID TO YOU IN THE CURRENCY OF THE PERFORMANCE BOND ISSUED.

WE, (COMPANY WHICH ISSUE THE PB) HAVE THE RIGHT TO CLAIM FOR ANY LOSS SUFFERED IN THE EVENT OF DEFAULT BY (THE BORROWER) TO FULFIL THE PROVISIONS OFTHE ART. 10 OFTHE G.S.M.L.A. UNDER TRANSACTION CODE DATED _______________

THIS CERTIFICATION HAS BEEN ISSUED FOR WHATEVER PURPOSES IT MAY SERVE IN AND IT IS EFFECTIVE UPON PAYMENT OF ATTACHED INVOICE NR _________ COVERING THE INSURANCE PREMIUM.