DEDUCTION OF PENALTY ON PAYMENT CERTIFICATE

M/s xxx Property Investment

P.O Box xxx,Dubai,UAE

Tel:  xxx

Fax: xxx

Attention :         Mr. xxx

                         Project Coordinator

Project             : Multi-Use Complex ( xxx Hotel ) on Plot No. xxx

                         at Al Barsha First, Dubai

Subject            :           DEDUCTION OF PENALTY ON PAYMENT CERTIFICATE

Dear Sir,

With reference to the Letter of Award (LOA) Ref: xxx  dated 29^th August xxx and further to receive the Final Payment Certificate, herein be informed that we reject your action to deduct the amount of AED xxx from our invoice as penalty.  However, the penalty shall be applied only based on contractual process which is not fulfilled from your end as follows:

1. You did not substantiate the applied deduction as a penalty based on claim submission for our review and further action.
2. We did not receive nor agree to the estimate of the imposed deduction.

In light of the above, the deducted amount as a penalty is your sole decision which we disagree with.  We request you to revise the payment certificate considering no any deduction as a penalty until you claim the same and until it is agreed by the two parties.

This is sent for your urgent action.

Kind Regards,

For: xxx Interiors LLC

xxx

Commercial Dept. In-Charge