PLEDGEAGREEMENT

ThisAgreementisexecutedatLahoreonthis30thdayofJune,2014byandbetween:
1.

BANKISLAMI PAKISTAN LIMITED, having its registered office at 11th Floor,

ExecutiveTower,DolmenCity,MarineDriveBlock#4CliftonKarachi,throughits
branch Office 174Ferozpur Road Lahore (hereinafter called "the Bank" which
expressionshallmeanandincludewhereverthecontextsoadmitsitssuccessors
ininterestandassign);
AND
M/s JDW Sugar Mills Limited, through authorized person(s) having registered office
at17AbidMajeedRoad,LahoreCantt(hereinafterreferredtoas"the Customer"

whichexpression shall mean and include wherever the context so admits his
successors ininterest and legal representatives) of the second part and also
(hereinafter referred to as "the Pledgor" which expression shall include their
respectivesuccessorsininterestandlegalrepresentatives)ofthethirdpart.
WHEREAS:
a)

AttherequestoftheCustomer,theBankhasextendedfinanceorotherbanking
facilities to the Customers underagreements executed orto beexecuted (such
facilities shall hereinafter be referred to as "the Financial Facilities", up to the
aggregatelimitofRs.300,000,000/(RupeesThreeHundredMilliononly).

b)

The Pledger has agreed to pledge the stocks of sugar ( with 10% margin
amounting to Rs.334,000,000/(Rupees Three Hundred Thirty Four Million
Only)describedintheSchedulehereto(hereinafterreferredtoas("thePledged
Goods"),tosecurepaymentoftheaforesaidamountstotheBankinaccordance
withthetermsoftheAgreements.

NOW,THEREFORE,thisAgreementwitnessesasunder:
1.

ThattheBank,attherequestoftheCustomers,hasextendedand/oragreedto
extend Financial Facilities upto the aggregate limits of Rs. 300,000,000/
(Rupees Three Hundred Million only) as set out against the name of the
Customer.

2.

The Pledger has deposited the white refined sugar with the Bank by way of
pledge lying in the custody of customer at premises situated at
________________________________________________________________________
,

3.

ThePledgershall,atalltimes,beboundtoensurethatthequantityofthewhite
refinedsugar isatleast10%morethantheamountownedbytheCustomerto
theBankatanytime.

4.

The white refined sugar will be valued on the basis of Valuation report of
approvedvaluatorofbankbeforefacilityisreleased.IfthetotalQuantityofthe
whiterefinedsugarfallsbelowthe10%marginrequiredhereinthePledgershall
bebound(withoutbeingcalleduponbytheBanktodoso)topledgeadditional
white refined sugar with the Bank immediately so that the margin stipulated
hereinismaintained.IfthePledgerfailtomaintainthesaidmargin,thentheBank
shallhavetherighttoselltheGoodswithoutnoticetothePledger.

5.

The Bank shall have the absolute right to sell the stock without notice to the
Pledgeriftheabovereferredamount,isnotpaidbytheCustomerwithinthetime
stipulatedintheAgreements.

6.

Notwithstanding anything to the contrary contained herein, the Bank (without

assigning any reason therefore) shall have the right to demand immediate
redemption of the Goods by payment of the entire amount owned by the
Customerseitherofthematthetimeofthedemand,andinsuchevent,theBank
shallhavetherighttoselltheentirestockofgoodsoranypartthereof,without
furthernotice,ifthePledgerfailtoredeemtheasaforesaid,ondemand.

7.

ThePledgeragreeanddeclarethattheBankisfullyauthorized(butnotbounded)
tosellorotherwisedisposeofftheStockofGoodsoranypartthereof,throughany
recognizedTrade,orbyprivatecontactinsuchmanneranduponsuchtermsand
subjecttosuchconditionsastheBankmaydeemfit,withoutanyreferenceor
noticetothePledgor.Theproceedsofsuchsaleordisposalshallfirstbeapplied
towardspaymentofallcosts,chargesandexpensesofandincidentaltosuchsale
ordisposal,andsecondlytowardspaymentsoftheabovereferredamounts.

8.

ThePledgeragreethatthesecurityherebycreatedisacontinuingsecurityforany
moniesfromtimetotimedueorowingfromtheCustomerstotheBankinrespect
of or arising from the Financial Facilities and shall extend to and cover any
renewals, modifications or extensions of the Financial Facilities as well as any
furtherandnewfinancialfacilitiesgrantedtotheCustomerbytheBankoragreed
tobegrantedbytheBankandshallterminateonlyiftheBankdischargesthe
Pledgerfromtheirobligationshereunderinwriting.

9.

Anyfurtherdocumentorwritingrequiredtogivevalidityto,ortocarryintoeffect
thisAgreement,ortocompletethetransferofvestingoftheStock/Goodsinthe
BankorinanythirdpartyselectedbytheBankortoensuretotheBankthefull
benefitandadvantageoftilesecuritycreatedbythepledgeofandanyotheror
further stamp duty requisite for that purpose will be signed and paid by the
Pledgerondemand.

10.

The Pledger also expressly declares and record that either one of the persons
comprisingthePledgershallbeentitledtoreceivebacktheGoodsfromtheBank
uponredemptionofthesameandareceiptissuedbyanyoneofsuchpersonsshall
constituteeffectivedischargefortheBank.

11.

ThePledgerundertakeandagreetoindemnify,defendandholdtheBankharmless
of and from any claims, expenses, costs, causes of action, liabilities, losses or
damagesofanynaturewhatsoeverarisingoutorinconnectionwithholdingand
enforcingthesecurityherebycreated.

INWITNESSwhereofthepartiesheretohavesignedthisAgreementonthedayandyear
firstabovementioned.

_______________________
Forandonbehalfof:
M/sJDWSugarMillsLimited

WITNESSES:

1.

______________________

Signature:
Name:
C.N.I.C.No.
Address:

2.

________________________

Signature:
Name:
C.N.I.C.No.
Address:

___________________________
Forandonbehalfof
BANKISLAMIPAKISTANLIMITED

SCHEDULEOFTHE_PLEDGEDGOODS''

Description

QuantityinNo.s

ValueinRs.
Whiterefinedsugar

TOTAL

_______________

AsperStockreportsubmittedbymuccadumintermsofpledge

_________________________________________________
M/sJDWSugarMillsLimited(ThePledger)