8. PENALTY CLAUSE: Failure of Party B or the receiving/beneficiary bank to provide funds against the SBLC on the agreed date specified in this Agreement, Party B will be liable to Party A and the issuing bank to pay penalty of one percent (1%) of the face value of the bank instrument (SBLC) for this agreement. Failure of Party A or the issuing bank to issue the SBLC, Party A will be liable to Party B and the receiving bank to pay penalty of one percent (1%) of the face value of the bank instrument (SBLC) for this agreement.