[Bank Letterhead with Address]

[Date]

To: [Beneficiary’s name & address]

We hereby issue our irrevocable [standby letter of credit] [and independent demand guarantee] number _______in the amount of _________________in your favor, by order of [Applicant’s name], available against presentation at our counters on or before [expiration date] of the following document:

Your signed statement reading as follows: "We hereby demand payment of $________ under your [letter of credit] [demand guarantee] number _______ due to the fact [Applicant name] is over 30 days past due to us for this amount."

[provide exact language]

It is a condition of this [letter of credit] [guarantee] that, unless you receive written notice from us, by overnight courier at the address above, not later than 120 days prior to the then-current expiration date, stating our election not to allow further automatic extensions, the expiration date then in effect will automatically extend for an additional year.

During the final 120 days prior to the expiration of this letter of credit or anytime after we send you a notice of non-renewal, you may draw by presenting either of the following:

Your signed statement reading as follows: “We hereby demand payment of $________ under your [letter of credit] [demand guarantee] number _______ due to the fact [Applicant name] has gone bankrupt and this is the amount we received in payment from them during the 90 day period prior to such event.  If the full amount we received is not recalled as a preferential payment, we agree to return the excess amount to you within 30 days of when the bankruptcy estate closes.”

- or -

Your original invoices accompanied by your signed statement reading as follows: “We hereby demand payment under your [letter of credit] [demand guarantee] number _______ for the amount of the attached invoice[s], payment for which is currently owed to us by [Applicant name].”

This undertaking is issued subject to the International Standby Practices 1998.

[Authorized Signature]