ISSUER xxxxxx
PERFORMANCE BOND NUMBER: xxxxx
DATE OF ISSUE: xxxxx
DATE OF EXPIRATION: xxxxx
BENEFICIARY:

(HEREINAFTER REFERRED TO AS THE BENEFICIARY)

Dear Sirs,

The Applicant, (seller’s name and full address), (hereinafter referred to as the Applicant) has concluded Sales Contract No. xxxxxxxxxxx with the Beneficiary for the delivery of 30,000 metric tons (+/-5%) of Used Rails R50 and R65.

As security for the due performance by the Applicant of the delivery of Used Rails R50 and R65, an indemnity by our bank is hereby furnished amounting to USD xxxxxxxxx as per provisions in the Contract.

We, (bank name and full address), herewith irrevocably undertake to pay on your (the Beneficiary’s) first demand, irrespective of the validity and the effects of the above mentioned contract and waiving all rights of objection and defense arising from the said Contract any amount up to. USD xxxxxxxx upon receipt of written request by your side (the Beneficiary) for payment indicating that the Applicant has failed to deliver the ordered merchandise or not delivered such merchandise as specified in the above mentioned Sales Contract No. xxxxxxxxxxx.

This Guarantee shall come into effect from the date of issuance of the relevant Letter of Credit (hereinafter referred to as L/C) purporting to the Sales Contract No. xxxxxxxxxxx for an amount up to USD xxxxxxx in favor of the applicant and will remain valid until 45 banking days after the validity of the Standby L/C and L/C.

This performance bond is subject to ICC URDG458.

Yours truly,
(Name of bank officer)