Notice of Default (#9)

Our Ref: xxx

Date: xxx

To                    :           xxx Mideast

                                   Oman Branch

Attention          :           Mr. xxx Sing

Project             :           xxx Building, Oman

Subject:               Notice of Default (#9)

References:       a) Xxx letter xxx dated 11 April xxx

                              b) Xxx letter xxx dated 23 May xxx

                              c) Xxx letter xxx dated 27 May xxx

                              d) Xxx letter xxx dated 27 June xxx

                              e) Xxx letter xxx dated 10 August xxx

                              f) Xxx letter xxx dated 26 September xxx

                              g) Xxx letter xxx dated 09 December xxx

                              h) Xxx letter xxx dated 21 January xxx

Dear Sir,

We are writing to you once again to notify you that you remain in flagrant default from your Contractual obligations.

Firstly, we have received an amount of OMR xxx from the previous overdue payments. However, you have not even closed once again the entire overdue payment of December xxx (IPA 03) and the balance overdue certified amount to be paid is now OMR xxx.

It is not at all acceptable that after more than 10 months and further to all our previous requests and letters referenced above that you have not settled our dues till date.

Secondly, the Advance Payment amount has been fully recouped and you are still failing to release our Advance Payment Guarantee and its amendment requested from you in our letter ref (b) since May xxx, and this can no longer be accepted. All the costs arising will be charged to you.

Finally, you continue unilaterally to withhold a certification for the amount of OMR xxx on the claim that these are on hold due to snagging works, which is in violation of the terms of our Sub-Contract Agreement terms & conditions. The Sub-contract includes retention provisions which cover handing over snags or comments.

Consequently, we request that you immediately remedy your ongoing defaults by:

1) Releasing the Advance Payment Guarantee.

2) Releasing the overdue payment of OMR xxx.

3) Reversing short certification of OMR xxx and releasing certification for work done and approved.

We reserve our rights for an Extension of Time (EOT) equivalent to the same number of days by which our payments are delayed in addition to the delays occurring in progress payments certification as listed above.

We further reserve our rights to claim for any and all damages resulting from your direct actions and your recurring evidenced bad faith in the execution of the Sub-Contract Agreement.

Your prompt action is highly appreciated.

Thanks,

On behalf of Xxx LLC

xxx

Project Manager