790

2.3 PERFORMANCE GUARANTEE GRANTED BY THE BANK

UNION BANK OF

SWITZERLAND

	Haldenstrasse 118 3000 Bern 22 Switzerland
Our ref.		Your ref.

14th July 20__

HAPROGETS INC.

78 HT, Box 90,

Pleemload, Chicago

USA

Dear Sirs,

In accordance with Contract No. H-5/21 dated 28 May 20__ which you signed with Keiser AG, Geneva, for the supply of precision equipment you undertook to effect an advance payment in U.S. Dollars which represents 5% (five percent) of the contract value amounting to U.S. Dollars 1,800,000.00.

We, the Union Bank of Switzerland, hereby undertake to irrevocably and unconditionally, on your first demand, refund to you the paid advance payment amounting to U.S. Dollars 90,000.00 together with the annual interest at 7,5% (seven and half percent), in case the above-mentioned firm fails to fulfil its obligations stipulated in the contract.

This guarantee shall come into force on the date of your effecting the advance payment and be valid until the delivery has been effected but not later than 30 September 20__. In case the delivery is postponed for reasons depending on the supplier of the equipment this guarantee will be prolonged for the time of the delay in delivery.

This letter of guarantee should be returned to us immediately upon the delivery and our obligations under this letter of guarantee will cease on that date regardless of whether the guarantee has been returned to us or not.

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Yours very truly,

J.Guttenberg

J.Guttenberg

Union Bank of Switzerland