Outstanding payment request.

Letter Ref. xxx

Date: xxx

xxx Holdings Limited

LOB xxx

P.O. Box: xxx (Jebel Ali Free Zone)

Dubai, UAE

Tel: xxx

Fax: xxx

Project:             Construction of xxx 101+6B+G+100 Floors, Hotel & Residential Tower.

Re:                   Outstanding payment request.

Dear Sir,

1. On 29 May 2013, M/s Contrctor name entered into a subcontract for the manufacturing, supply and installation of wooden door works for Marina xxx Hotel and Residential Tower.
2. M/s Contrctor name have at all times complied with its contractual obligations under the Subcontract.
3. On 29 May xxx M/s Contrctor name (the “Nominated Subcontractor”) entered into a Tripartite Addendum with xxx Holdings Limited (the “Employer”) and xxx Investment Construction & Operations (the “Contractor”).
4. According to Clause 2 of the Tripartite Addendum, the Main Contract and the Subcontract are modified as follows:
5. The Employer undertakes the entire payment liability of the Subcontract Amount of the Nominated Subcontractor and the Nominated Subcontractor releases and discharged the Contractor from all current and future payment liabilities towards the Nominated Subcontractor in respect of the Subcontract Amount.
6. The Employer shall make direct payments to the Nominated Subcontractor for the Subcontract Amount of the Nominated Subcontractor in accordance with and limited to the amounts certified by the Main Contractor for the payment application of the Nominated Subcontractor.
7. The Emloyer shall fully indemnify and hold harmless the Contractor in respect of any loss or delay arising as a result of non-payment or delay in direct payments of the Employer to the Nominated Subcontractor.
8. A copy of the Tripartite Addendum has been attached to this letter for your reference.
9. As yet, the Employer (xxx) has not made the Outstanding Payment to the Nominated Subcontractor (xxx Interiors).
10. Although the Project was completed on 4 June xxx, the auto renewal setup of the Performance Bank Guarantees (“PBG”) is a repeated expense for the Nominated Subcontractor despite the fact that the Outstanding Payment is now overdue.
11. As at the date of this letter, a total sum of AED xxx (United Arab Emirates Dirhams xxx) is outstanding (the “Outstanding Payment”), broken down as follows:
    1. AED xxx for completed progress works (please refer to the payment applications attachement);
    1. AED xxx outstanding as retention payment since 4 June xxx.
    1. AED xxx PBG on auto renewal with Commercial Bank of Dubai.
12. Your clear failure to service the Outstanding Payment in good faith is unacceptable and is considered to be in breach of Clause 2 of the Tripartite Addendum.
13. This matter has been referred to the xxx Holdings’ Legal Council in relation to the Outstanding Payment. This letter serves as a formal notice of our intention to commence legal proceedings against you should you fail to settle the Outstanding Payment.
14. xxx Interiors hereby demands you to pay the entirety of the Outstanding Payment within ten (10) business days of the date of this letter. Please contact xxx from xxx Interiors (Senior Projects Manager) on telephone number xxx or via email xxx to arrange this payment.
15. Should you fail to clear the Outstanding Payment within the time and in the manner set out above, we shall be forced to adopt any and all legal measures to recover our dues.
16. M/s Contrctor name reserves all rights in relation to the issues raised in this letter.
17. The contents of this letter are not and cannot be construed as admission of liability of any kind by M/s Contrctor name.

Yours sincerely,

Legal Department

For and on behalf of M/s Contrctor name.