GUARANTEE FOR SINGLE CREDIT SALES TO BA

From:

To: Fatima Fertlizer Company Limited

110-E,Main Boulevard D.H.A Lahore

Guarantee No ______________ Guarantee for (Rs) ______________

Date of Issue ______________ Date of Expiry : ______________

WHEREAS Fatima Fertilizer Company Limited. (hereinafter referred to as "FFCL") have

agreed to sell to M/s_
(hereinafter referred to as the "Business Associate or BA") of NP, NPK,CAN-G,CAN-OS and
UREA fertilizers.

AND WHEREAS as per the existing arrangements between the Business Associate (BA) and
FFCL the BA has to pay for the sale prior to the delivery to him of the fertilizer.

AND WHEREAS FFCL have agreed to give the BA credit of ______ days for the sale being made
to the BA on single credit sale basis against a bank guarantee.

AND WHEREAS in consideration of the giving of the credit, as aforesaid, to the BA and at the
request of the BA we ____________________Bank Ltd. having a branch known
as_____________ Branch, hereby guarantee on the terms and conditions hereinafter stated, the
due payment by the BA to FFCL of up to a total sum of Rs. ______________ (Rupees
___________________________ only) being the value of the NP, CAN and UREA fertilizers to
be delivered to the BA.

01. Now therefore we, __________________ Bank Ltd. undertake to pay FFCL the said total
sum of Rs. =______________ (Rupees _______ only) or any smaller amounts,
within 10 days of demand or demands being made in writing, without restrictions or conditions
and reference of any kind whatsoever to the BA, provided that such demands are made
within the validity period of this guarantee as given in clauses 2 & 6 below. Your letter(s) of
demand shall be conclusive proof of the validity of the demand and the amount(s) mentioned
shall not be questioned by us. Payment shall be made by us by means of the demand draft
payable at Multan. We further confirm that any time or indulgence granted by FFCL to the
dealer will not prejudice FFCL's rights against us.

02. This guarantee is valid for a period of ______ months or ______ days from the date of its
issue i.e. from _________ to__________ (both days inclusive) and the amount herein fixed
above represents the maximum of our obligation under this guarantee. Any claim under this
guarantee must be lodged by the said date failing which we shall stand absolved of all our
liabilities hereunder.

03. We further confirm and undertake that in the event of our failure, for any reason whatsoever,
to make any payment of claim within 10 days of your written demands, provided all such
claims are lodged on or before the expiry date of this guarantee, we shall become liable to
pay an additional amount by way of liquidated damages, amounting to 22% per annum of the
demanded amount for the period of default which shall be paid to FFCL along with the
demanded amount.

04. We hereby confirm that this Guarantee will not be revoked by us during its currency period
mentioned in Paragraph 2 above (and future extensions if any) without the prior written
consent of FFCL.
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Guarantee No ______________ Guarantee for (Rs) ______________

Date of Issue ______________ Date of Expiry : ______________

5. FFCL will be at full liberty to negotiate/endorse/assign this Guarantee to any financial

institution including a banking company without reference to The Bank and the BA and on
such negotiation /endorsement/assignment, the endorsee/assignee shall have similar and all
rights in respect of this Guarantee as an assignee for valuable consideration and such
endorsement/assignment shall neither discharge the BA nor The Bank of the liability under
this guarantee.

6. In case this Guarantee is negotiated / endorsed / assigned, FFCL’s letter in favor of the same
financial institution or Banking Company of Pakistan, authorizing them to collect the payment,
will be sufficient proof of it. The Bank hereby unconditionally acknowledges FFCL’s right or
such authorization and The Bank undertakes to entertain the claims of endorsee/assignee.
Furthermore, The Bank undertakes that upon any request from the beneficiary or endorsee /
assignee, The Bank will mark the lien in The Bank’s books in FFCL’s or endorsee/assignee’s
favor and confirm the same in writing.

7. The Bank’s liability under this Guarantee shall subsist even if (for any reason including)
changes in The Bank’s status or the status of BA takes place by operation of the law. It is
expressly laid down that if non performance by the BA on account of negligence, force
majure, willful denial to perform, or on account of circumstances beyond The Bank control,
performance by BA becomes impossible, it shall not absolve The Bank from the liability under
this Guarantee.

8. No claim whatsoever shall be considered valid after the expiry of the Guarantee period and
our liability under this guarantee shall stand discharged and extinguished completely in case
the claim is not lodged on or before the Guarantee period or on or before the extended date
provided such extensions approval is given/conveyed by us in writing.

9. That this guarantee shall remain valid upto ______________ and thereafter it shall cease to
operate provided we shall remain liable for any demand/claim received by us on or before the
date of expiry of this Guarantee.

Yours faithfully

Witness (1) Attorney (1)

______________________________ ______________________________
______________________________ ______________________________
______________________________ ______________________________
NIC # __________________________ NIC #__________________________

Witness (2) Attorney (2)

______________________________
______________________________
______________________________
______________________________
NIC # __________________________
_______________________________
_______________________________
_______________________________
_______________________________
NIC # ___________________________