Alliance Islamic Bank Sukuk - Diagram Murabahah (based on Tawarruq)

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1. Transaction Structure Diagram : Murabahah (based on Tawarruq) Step 1 Pursuant to a service agency agreement between Alliance Islamic and the Sukuk Trustee, Alliance Islamic will be appointed by the Sukuk Trustee (acting on behalf of the holders of Subordinated Sukuk ("Sukukholders")) as the purchase agent ("Purchase Agent") to purchase the Shariah compliant commodities ("Commodities"). Step 2 Pursuant to the Commodities Murabahah Master Agreement between Alliance Islamic and the Purchase Agent, Alliance Islamic (as the "Purchaser") will issue a purchase order to Alliance Islamic (as the Purchase Agent) to buy the Commodities from the Sukuk Trustee (acting on behalf of the Sukukholders) at the "Deferred Sale Price" (as defined in paragraph entitled "Purchase and selling price/rental"). Step 3 The Purchase Agent will purchase the Commodities from a commodity supplier (via a commodity trading participant) ("Commodity Supplier") in the commodity market on a spot basis at a purchase price equivalent to the proceeds of the Subordinated Sukuk ("Commodity Purchase Price"). Step 4 Alliance Islamic (as the Issuer) will, from time to time, issue Subordinated Sukuk which evidences the Sukukholders’ ownership in the Commodities and the Purchaser’s obligation to pay the Deferred Sale Price to the Sukukholders upon sale of the Commodities to the Purchaser. The proceeds received from the Sukukholders shall be used by the Purchase Agent to pay the Commodity Purchase Price.
2. Step 5 Subsequently , the Sukuk Trustee (on behalf of the Sukukholders) will sell the Commodities to the Purchaser at a selling price equivalent to 100% of the nominal value of the relevant tranche of the Subordinated Sukuk plus the aggregate periodic profits ("Periodic Profits") on deferred payment terms ("Deferred Sale Price"). Step 6 The Purchaser shall sell, on a spot basis, the Commodities to a commodity buyer ("Commodity Buyer") for a cash consideration equal to the Commodity Purchase Price. Step 7 The Purchaser shall make periodic payments on each "Periodic Payment Date" (as defined in paragraph entitled "Profit / coupon payment frequency") and final payment of the Deferred Sale Price at the maturity date of the Subordinated Sukuk to the Sukukholders. Upon declaration of an "Enforcement Event" (as defined in paragraph entitled "Events of defaults or enforcement events") or early settlement pursuant to the "Optional Redemption", the "Tax Redemption" or the "Regulatory Redemption" (as defined in paragraph entitled "Call option and details"), the Purchaser shall pay the outstanding Deferred Sale Price which is subject to "Ibra’" (as defined in paragraph entitled "Ibra’") as final settlement of the same to the Sukukholders.