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Form Of Performance Bank Guarantee Conditional

Note: The following forms and documents are prepared by the above under the laws and practice prevailing as of [Date]. Seldom is a model form or document directly suitable to a transaction without adaptation to the particularities and circumstances of the matter.

Form of Performance Bank Guarantee Conditional

THIS AGREEMENT is made on the (...) day of (...) 20.. between (...Name of Bank...) of (...Address of Bank...) (hereinafter called "the Guarantor") of the one part and (...Name of Employer...) (...Address of Employer...) (hereinafter called "the Employer") of the other part.

WHEREAS

(1) This Agreement is supplemental to a contract (hereinafter called the Contract) made between (...Name of Contractor...) of (...Address of Contractor...) (hereinafter called the Contractor) of the one part and the Employer of the other part whereby the Contractor agreed and undertook to execute the Works of (...Name of Contract and Brief Description of the Works...) for the sum of (...Amount in Contract Currency...) being the Contract Price; and

(2) The Guarantor has agreed to guarantee the due performance of the Contract in the manner hereinafter appearing.

NOW THEREFORE the Guarantor hereby agrees with the Employer as follows:

(a) If the Contractor (unless relieved from the performance by any clause of the Contract or by statute or by the decision of a tribunal of competent jurisdiction) shall in any respect fail to execute the Contract or commit any breach of his obligations thereunder then the Guarantor will indemnify and pay the Employer the sum of (...Amount of Guarantee...) ((...in words...)), such sum being payable in the types and proportions of currencies in which the Contract Price is payable, provided that the Employer or his authorized representative has notified the Guarantor to that effect and has made a claim against the Guarantor not later than (...) months after the issuing of the Maintenance Certificate. (b) The Guarantor shall not be discharged or released from his guarantee by an arrangement between the Contractor and the Employer, with or without the consent of the Guarantor, or by any alteration in the obligations undertaken by the Contractor, or by any forbearance on the part of the Contractor, whether as to the payment, time, performance or otherwise, and any notice to the Guarantor of any such arrangement, alteration or forbearance is hereby expressly waived.

Given under our hand on the date first mentioned above.

SIGNED BY _________________ SIGNED BY ___________________

for and on behalf of the for and on behalf of the

Guarantor in the presence of Employer in the presence of

___________________________ _____________________________

(Witness) (Witness)