XYZ Client

Grant of Credit Facilities

XYZ Client Date

Address

Kind Attn: Mr. ABC

Dear Sirs:

Assalaam-o-Alaikum,

Subject: Grant of Credit Facility to M/s. XYZ

With reference to your recent discussion with us, we are pleased to offer through
this letter the following facilities to you on the terms and conditions stated
hereunder:

FUNDED
Facility # 1 Istijrar (Master Murabaha) Facility / Import Murabaha Facility
for both Sight & Usance LCs / Export Murabaha Facility
Facility amount PKR 300 MM (Rupees Three Hundred Million Only) or Equivalent
US$ Amount (subject to availability of US Dollars at MBL’s end).
Facility Structure MBL and XYZ will enter into a Master Murabaha Facility
agreement amounting to PKR 300 Million (or Equivalent US $
amount). XYZ will be allowed to draw down the facility under a
series of Sub-Murabaha tranches for local purchase or import of
following items. Maturity of each Sub Murabaha shall be agreed at
the time of disbursement of each tranche. Each Sub-Murabaha shall
mature by the Facility expiry date (365 days from date of first draw
down).
Purpose For local purchase / import of raw material, stocks, stores, tools,
spare parts, plant & machinery etc.
Profit Rate To be negotiated at the time of each Sub-Murabaha transactions
(KIBOR & LIBOR shall serve as the respective bench mark for
PKR Denominated & USD Denominated transactions)
Sub-Murabaha Sub-Murabaha’s upto 365 days for PKR Denominated Sub-
Tenor Murabahas & upto 180 days incase of USD Denominated Sub-
Murabahas.
Repayment of Bullet repayment of principle at the maturity of each Sub
Principle Murabaha.
Profit Payment Profit for each Sub Murabaha will be as per the following schedule:
Maturity of Sub Murabaha facility Profit Payments
Maturity upto 90 days At Maturity

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 XYZ Client
Grant of Credit Facilities

Maturity greater than 90 days Quarterly in arrears

Security  First Joint Pari-Passu charge over all present and future
current assets of XYZ with 20% margin (With regard to
enhancement of XYZ’s funded limit from PKR 200 Million to
PKR 300 Million & non-funded LCU & LG Limits of PKR
100 Million, FPPC of PKR 455 Million is already in place as
against required PKR 500 Million. The client shall initially
arrange for creation of Ranking Charge for balance amount of
PKR 45 Million with an undertaking in favor of MBL to
upgrade it to first parri passu status at the time of next
supplemental agreement).

FUNDED (SUB-LIMIT OF FACILITY # 1)

Facility # 2 CAD Negotiation Facility
Facility amount PKR 200 MM (Rupees Two Hundred Million Only).
Purpose Negotiation of Export CAD documents
Security  Same as Facility # 1.

Non-Funded
Facility # 3 Foreign Letters of Credit Facility (Sight L/Cs)
Purpose For the purchase of imported raw material, spare parts, tools, stores
equipment, plant & machinery etc.
Facility Amount PKR 500 Million (Rupees Five Hundred Million Only).
Security  Lien on import documents.
Service Charges 0.03% per quarter (L/C Opening Charges)
0.03% (L/C Retirement Charges)

NON-FUNDED (SUB-LIMIT OF FACILITY # 3)

Facility # 4 Inland & Foreign Letters of Credit Facility
(Usance L/Cs)
Purpose For the purchase of local / imported raw material, spare parts, tools,
stores equipment, plant & machinery etc.
Facility Amount PKR 100 Million (Rupees One Hundred Million Only).
Security  Accepted Drafts
 Same as Facility # 1.
L/C charges 0.03% per quarter (L/C opening charges)
0.03% (L/C retirement charges)

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 XYZ Client
Grant of Credit Facilities

NON-FUNDED (SUB-LIMIT OF FACILITY # 3)

Facility # 5 Letter of Guarantee Facility (L/G)
Purpose To issue Advance Payment, Bid Bond & Performance Bond L/Gs
favoring Government, Semi-Government & other institutions.
Facility Amount PKR 100 Million (Rupees One Hundred Million Only).
Security  Same as Facility # 1.
Service Charges 0.10% per quarter

Facility # 6 Bank Risk Line

Purpose To facilitate exports of the company (Negotiation of Export Sight &
/ or Usance Letters of Credit).
Facility Amount PKR 200 Million (Rupees Two Hundred Million Only).
Security  Lien on Export Bills drawn against L/Cs opened by Banks
approved by MBL’s Treasury Deptt.

Other Terms and Conditions:

The Facility shall be governed by the all the rules and regulations of the
Government of Pakistan and the State Bank of Pakistan (IXYZUDING SBP
PRUDENTIAL REGULATIONS) now in force and as amended from time to time and
credit restrictions imposed by the SBP from time to time.

The Customer will not create any charge on the pledged, hypothecated and/or
Leased Assets by way of pledge, hypothecation, mortgage, or in any other way with
any banks, financial institutions or any other person in any manner whatsoever
without written permission of Meezan Bank Limited.

The pledged, hypothecated and/or leased assets shall be duly insured in favor of
MBL with MBL as the loss payee. The insurance company in such a case shall be
approved by MBL.
The hypothecated/pledged and/or Leased Assets may be inspected by MBL as and
when required by it and the Customer shall allow access to and cooperate with the
authorized representatives of MBL in carrying out such inspections.

Any security created in favor of MBL for the facility by way of mortgage,
hypothecation, pledge or otherwise shall be maintained throughout the tenor of the
facility.

MBL will require evidence by way of invoices or otherwise from the Customer, that
the Murabaha/Import Murabaha/Export Murabaha/Lease Finances have been
utilized for the purpose of acquiring the assets in terms of the Master Murabaha
/Import Master Murabaha / Export Master Murabaha/ Lease Finance Agreement.
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 XYZ Client
Grant of Credit Facilities

The Customer shall not change its scope of activities as specified in its Articles and
Memorandum of Association without obtaining prior permission in writing from
MBL. Any material change in the shareholding structure, ownership or
management of the Customer during the tenor of the Murabaha/Lease facility shall
constitute an event of default under the Murabaha/Import Murabaha / Export
Murabaha/ Lease agreement and the Bank shall be entitled at its sole discretion to
amend, cancel or terminate the Murabaha/Import Murabaha/Export
Murabaha/Lease agreement.

All expenses incurred on account of documentation, valuations, charge registration

or any other costs in relation to the Facility mentioned in this letter including bank
charges, legal/documentation expenses, excise duties, Government of Pakistan’s
and State Bank of Pakistan’s levies, duties, stamp duties, fees, etc. (or other similar
taxes or charges) now or hereafter levied on the Bank in respect of or in
connection with the Facility and security thereof shall be payable by the Customer
immediately on the Bank’s demand.

The Bank reserves the rights to amend, cancel or terminate the Funded / Non-
Funded Credit facilities without assigning any reason thereof.
Draw down of above mentioned facilities will be made available to the Customer
after execution and satisfactory review of all documentation, successful financial
close along with perfection of securities as per terms & conditions of this offer
letter and other facility and security related documents to be executed between
MBL & XYZ.

Kindly return to us this letter IN ORIGINAL signed by XYZ’s authorized signatories

latest by
April 31, 2005 as a token of acceptance of the above-mentioned terms &
conditions.

Assuring you of our best co-operation & assistance.

Yours truly,

RM Corporate Banking Manager Corporate Banking

Branch Manager

We accept the above terms and conditions for and on behalf of XYZ.

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 XYZ Client
Grant of Credit Facilities

Authorized Signatory Authorized

Signatory
Please affix Corporate Seal/Company Stamp here

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