FERFORMANCE GUARANTEE FORMAT(BANK LETTERHAD)

FERFORMANCEGUARANTEEFORMAT(BANKLETTERHAD)TO:____________(Companyname),acompanyincorporatedunderthelawsofandhavingitsregisteredofficeat____________(hereinaftercalled'NPOG')WHEREAS(1)byanagreementforthe____________(hereinafterreferredtoastheoftheonepartandNPOGoftheotherpart,theCONTRACTORagreestoperformtheWORKSinaccordancewiththeCONTRACT.(2)oneoftheexpressedconditionsoftheCONTRACTisthereceiptbyNPOGofthisguaranteedulyexecutedby(nameofbanker:)____________(hereinaftercalledthe'GUARANTOR')whoherebyirrevocablyandunconditionallyguaranteesandundertakestoNPOGasfollows:i)iftheCONTRACTORshallinanyrespectfailtoexecutetheCONTRACTorcommitanybreachofthisobligationsthereundertheGUARANTORshallpaytoNPOGonfirstdemandwithoutprooforconditionsthesumofUS.Dollar____________(USD:____________)within14daysafterreceiptofthesaiddemandnotwithstandinganycontestationorprotestbytheCONTRACTORoranyotherthirdparty.ii)TheGUARANTORshallnotbedischargedorreleasedfromthisGuaranteebyanyagreementmadebetweentheCONTRACTORandNPOGwithorwithouttheconsentoftheGUARANTORorbyanyalterationintheobligationsundertakenbytheCONTRACTORorbyanyforbearancewhetherastopaymenttime,performancesorotherwise,orbyanychangeinmaneorconstitutionofNPOGortheCONTRACTOR.iii)Thisguaranteeiscontinuingsecurityandaccordinglyshallremaininforceuntiltheissuanceofthenoticeforfinalacceptanceofthree(3)monthsaftertheearlyterminationoftheCONTRACT,whicheverisearlier.iv)TheGUARANTORagreethatthegrauanteeisgivenregardlesswhetherornotthesumoutstandingoccasionedbytheloss,damagescosts,expensesorotherwiseincurredbyNPOGisrecoverablebylegalactionorarbitration.INWITNESSwhereofthisguaranteehasbeendulyexecutedbyGUARANTORthe____________dayof____________.Forandonbehalfof____________(nameofbanker)signature:____________________name:_______________________designation:___________________banker'sseal:_________________