Notice of default.

Our Ref: xxx

Date: xxx

To                           : xxx Contracting Company LLC

                               P. O. Box xxx, Dubai, U.A.E.

Attention            : Mr. xxx, Senior Project Manager

Project                 : xxx Tower, Dubai – U.A.E.

Subject :     Notice of default.

References: a) xxx dated 05 April xxxx

                       b) xxx dated 19 April xxxx

                       c) xxx dated 27 April xxxx

                       d) xxx dated 31 May xxxx

Dear Sir,

We are writing to notify that you are in default of your contractual obligations.

In accordance with the terms of our Subcontract Agreement No. xxx-011 dated 20December 2020, Subcontract Price & Payments, Payment Terms, Stages of Payment, (i) Monthly Progress Payment  “Payment will be as a 75 days PDC dated from the date of the IPA submission. The PDC shall be released within 30 days from the date of submission of IPA. (I.e. 15 days for certification and 15 days for payment). IPA to be submitted every end of the month.”

Default in payment:

Our Interim Payment Application #2 was submitted on 30 May xxxx and the PDC date should be 13 August xxxx. Instead we have received the PDC dated 5 September xxxx.

• Default of 23 days.

Default in release of Payment Certificate & PDC.

Our Interim Payment Application #3 was submitted on 30 June xxxx and the certification should have been received on 15 July xxxx and the PDC should have been received on 30 July. Till date we have received neither the certification nor the PDC.

• Default of 19 days.

We urge you to release the payment certificate and related cheque in compliance with our payment terms immediately.

Such delay in certification and payment is causing damage to our cash flow and our supply chain and we urge you to ensure that both certification and payment are made in accordance with our payment terms.

M/s xxx (Contractor Name) will not be liable for any delay caused by your default on your contractual liabilities as such delays are on account on AGCEW acts. In addition we reserve our rights under the Terms of our Sub-Contract Agreement for an Extension of Time (EOT) equivalent to the same number of days by which our progress payments are delayed in addition to the number of days by which our full amount of advance payment was delayed.

We further reserve our rights to claim for all other EOT claims related to design changes, delivery of FIM material, etc. as recorded in our letters referenced above.

Yours faithfully,

On behalf of M/s xxx (Contractor Name) LLC

xxx

Projects Manager