Sanctions (Non-Performance)
After this contract is signed by both Provider and Beneficiary / Lessee, and copies exchanged electronically or otherwise by a delivery service, failure to follow the closing procedure in time and form herein is considered breach of this contract and puts the failing party in default, to pay a one-time penalty (non-performance) fee of 2% of the contract value to the principal suffering party.
Unauthorized Bank Communication
Neither party is allowed to contact the bank of the other party without the authorization of the party whose bank is to be contacted. Any unauthorized calls by any party or its representatives, agents, brokers or lawyers to probe or communicate in an improper way(s) indicative of direct or indirect solicitation to bank(s) in this transaction shall be prohibited and result in termination of this contract. This is a private transaction between two entities and is not to be construed as an offer of funds or a sale/lease of securities as defined in the US Securities Act of 1933/34.
Receiver / Lessee Obligation
The Beneficiary / Lessee, with full corporate and legal responsibilities and under penalty of perjury, confirms that it is fully aware of its financial ability and facilities with its bank when signing this DOA and/or other agreements and documents with the Provider. The Beneficiary / Lessee further confirms that the Provider is authorized to verify the funds of each tranche of the Contract with its bank, if necessary. In the event of unsatisfactory verification, the transaction will be suspended immediately and the Receiver is in breach of the Contract and liable for legal consequences.
Provider Obligation
The Beneficiary / Lessee, with full corporate and legal responsibilities and under penalty of perjury, confirms that the Provider is fully aware of the commitment of the instruments when countersigning this DOA. The Provider further confirms to deliver the instruments and to negotiate and make proper arrangements to continuously supply the instruments until the whole contracted volume is exhausted. Without expressed written permission, neither party shall contact the bank of the other party. Both parties may change banking coordinates with written notice to the other party.
Non-Solicitation
The Beneficiary / Lessee hereby confirms and declares that the Provider, its associates or representatives or any person or persons on its behalf, has/have never ever solicited the Standby Letter of Credit, its shareholders, associates or representatives in any way whatsoever that could be construed as a solicitation for this transaction or for future transactions.
Force Majeure
Any delay in or failure of performance by either party of their respective obligations under this agreement shall not constitute a breach hereunder or give rise to any claims for damages if, and to the extent that, such delays or failures in performance are caused by events or circumstances beyond the control of such party (including lawful order of government or authority, act of war, rebellion or sabotage, fire, flood, earthquake or other natural disasters, or any other cause not within the control of such party which by the exercise of reasonable diligence the party would be unable to foresee, prevent or remedy).
Arbitration
All disputes and questions whatsoever which arise between the parties to this agreement, and touching on this agreement, on the construction or application thereof or any account, cost or liability to be made hereunder, or as to any act or way relating to this agreement, shall be settled by arbitration in accordance with the arbitration laws of the ICC.
Entire Agreement & Governing Law
This agreement contains the entire agreement and understanding concerning the subject matter hereof and supersedes and replaces all prior negotiations and proposed agreements, written or oral. Neither of the parties may alter, amend nor modify this agreement except by an instrument in writing signed by both parties. This agreement will be governed by and construed in accordance with the laws of the United Kingdom. All electronic signatures (fax/e-mail), including those in counter-part, shall be accepted as original signatures. The Parties agree that this Agreement is entered into voluntarily, by mutual consent and not under stress. The prevailing party in any legal action shall be entitled to recover reasonable attorneys' fees and costs.
Beneficiary Special Instructions
The Beneficiary of the SBLC will be issued with standard format ICC ISP 600/758.
Improper Release of Banking Information
Improper release of the above banking information, for any reason, without the written prior authorization of the other party, shall be considered a breach of contract and will make the defaulting party actionable for damages sustained hereby. Each party is not allowed to contact the other party's bank without expressed written permission. Any party attempting to do so will lead to cancellation of this transaction/agreement.
Assignment
Neither Party may assign or delegate its interest or duties without prior written consent of the other Party.
Severability
In the event that one of the articles or the addendum of this Agreement is considered void and unenforceable, the remainder of the Agreement shall remain enforceable. The Parties shall in good faith negotiate any possible correction to the above in order to prevent the dissolution of the entire Agreement.
Agreement Execution
Each party to this Agreement represents that it has full legal authority to execute this Agreement, and each party agrees to be bound by the terms and conditions set forth herein. Each party agrees that this Agreement may be executed simultaneously by and between the Parties via e-mail or facsimile transmission, which shall be deemed original. All statements made by either party are under penalty of perjury.