Dear Sirs,

We understand you have awarded to [_____] of[____a contract dated [_____Contract] for [details]. Under the terms of the Contract ______US$ will be paid by you to the Company.

We, [_______________ ] Bank pic («the Guarantor») hereby irrevocably and unconditionally guarantee to pay to you up to the sum of US$_________and accordingly we covenant and agree as follows:

a) On the Company's failure to fulfil any of the terms of the Contract, as determined by you in your absolute judgement, the Guarantor shall forthwith on your first demand made in writing, and notwithstanding any objection by the Company, pay to you, within fifteen (15) days of receipt of your demand, such amount or amounts as you shall require not exceeding in aggregate the amount of US$_______________________by transfer to an account in your name at such bank in the U. K. as you shall stipulate or in such other manner as shall be acceptable to you. Your demand must incorporate or be accompanied by your statement that the Company is in breach of the Contract and that you have given not less than 15 days notice of such breach to the Company (a copy of which notice shall be attached to the demand) and that such notice has expired.

b) Any payment made hereunder shall be made free and clear of, and without deduction for or on account of, any present or future taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever and by whomsoever imposed.

c) Except as specified herein, the covenants herein contained constitute unconditional and irrevocable direct obligations of the Guarantor. No alteration in the terms of the Contract or in the extent or nature of the work to be performed under the Contract, and no allowance of time by you or other forbearance or concession or any other act or omission by you which but for this provision might exonerate or discharge the Guarantor, shall in any way release the Guarantor from any liability hereunder.

d) This guarantee shall remain valid and in full force and effect until________(«Expiry»), and any demand and statement must be received by the Guarantor at the stipulated address on or before Expiry.

e) The Guarantor represents and warrants that the amount of the guarantee herein contained does not exceed 20 percent of the total of the paid up Capital and Reserves of the Guarantor.

f) This guarantee is governed by and shall be construed in accordance with the laws of England, and shall be subject to the jurisdiction of the English courts.

g) This guarantee becomes effective upon payment to the Company of the amount of US$____ as referred to in the first paragraph hereof, and an acknowledgement or receipt in writing from the Company produced by you shall be proof of such payment.

Yours faithfully,

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