Common use of Enforcement of Guarantee Clause in Contracts

Enforcement of Guarantee. 3.1 In accordance with the PSC, if (i) the Contractor has failed to perform all or any part of its obligations under the PSC other than those obligations referred to in Sections 4.3, 4.4 and 4.5 of the PSC; or (ii) an order is made or an effective resolution in passed for the winding up of [Name of Company requiring Guarantee] the Beneficiary shall (a) notify [Name of Company requiring Guarantee] and Guarantor in writing of Contractor’s non-compliance and the details thereof; and (b) allow the Contractor sixty (60) days from the date of such notice at (i) above, to perform its requisite obligations and correct its non-compliance, failing which [the Guarantee sum, /the amount corresponding to the proportionate share of the aggregate amount of which the Contractor is in default under the PSC,] shall be available for payment within five (5) working days after presentation by the Beneficiary to [Name of Company requiring Guarantee] of a Letter of Guarantee and a written demand signed by the Beneficiary, which set forth: (i) the amount claimed by the Beneficiary and certifying that the amount claimed represents the amount due and owing by [Name of Company requiring Guarantee and/or Name of Carried Company] with respect to its….% interest share, as Contractor under the PSC, for obligations other than those referred to in Sections 4.3, 4.4 and 4.5 of the PSC, that the Contractor failed to perform; (ii) Details of Contractor’s non-compliance and failure to perform its requisite obligations and/or correct its non-compliance; (i) [Name of Company requiring Guarantee and/or Name of Carried Company] has been notified in writing by the Beneficiary, by registered letter or courier (a copy of which is attached to the Beneficiary’s written demand) that a drawing is being made against this irrevocable Letter of Guarantee. 3.2 Payment of the Guarantee sum in accordance with Section 3.1 above, shall be in full satisfaction of all claims by the Beneficiary concerning work to be performed by [Name of Company requiring Guarantee and/or Name of Carried Company], in respect of obligations under the PSC other than those obligations referred to in Sections 4.3, 4.4 and 4.5 of the PSC for [Number of Year/Year/Period] 3.3 All sums due and payable by the Guarantor under this Letter of Guarantee shall be made in full without set-off or counterclaim and free and clear of and without deduction for or on account of any future or present taxes, levies, imposts, duties, charges, fees, deductions, or withholdings, now or hereafter levied, collected, withheld or assessed by a governmental authority.

Enforcement of Guarantee. 3.1 In accordance with Section 2.2(a) (iii) and Section 4.3 and [Insert 4.4 and 4.5 as applicable] of the PSC, ifif at the end of the (Initial, Second or Third Period pursuant to Article 4] or upon revocation or termination of the PSC, (i) the Contractor has failed to perform all or any part of its obligations under arising out of the PSC other than those obligations referred Minimum Exploration Work Requirements for the (Initial, Second or Third Exploration Period pursuant to Article 4] in Sections 4.3, 4.4 and 4.5 of accordance with the PSC; or (ii) an order is made or an effective resolution in Resolution is passed for the winding up of the [Name of Company requiring Guarantee] the Beneficiary shall (a) notify [Name of Company requiring Guarantee] ], the Contractor and Guarantor in writing of Contractor’s non-compliance and the details thereof; and (b) allow the Contractor sixty (60) days from the date of such notice at (i) above, to perform its requisite obligations and correct its non-compliance, failing which [the Guarantee sum, /the amount corresponding to the proportionate share of the aggregate amount of which the Contractor is in default under the PSC,] shall be available for payment within five (5) working days after presentation by the Beneficiary to [Name of Company requiring Guarantee] of a the following: 1. Letter of Guarantee and a Guarantee; and 2. A written demand signed by the Beneficiary, which set sets forth: (i) the amount claimed by the Beneficiary and certifying that the amount claimed represents the amount due and owing by [Name of Company requiring Guarantee and/or Name of Carried Company] with respect to its….% interest share, as Contractor under the PSC, for of the obligations other than those referred to in Sections 4.3, 4.4 and 4.5 under [Section…] of the PSC, that the Contractor failed to perform; (ii) Details details of Contractor’s non-compliance and failure to perform its requisite obligations and/or correct its non-compliance; (iiii) [Name of Company requiring Guarantee and/or Name of Carried Company] has been notified in writing by the Beneficiary, by registered letter or courier (a copy of which is attached to the Beneficiary’s written demand) that a drawing is being made against this irrevocable Letter of Guarantee. 3.2 Payment of the Guarantee sum in accordance with Section 3.1 above, shall be in full satisfaction of all claims by the Beneficiary concerning work to be performed by [Name of Company requiring Guarantee and/or Name of Carried Company], in respect of obligations under the PSC other than those obligations referred to in Sections 4.3, 4.4 and 4.5 of the PSC for [Number of Year/Year/Period] 3.3 All sums due and payable by the Guarantor under this Letter of Guarantee shall be made in full without set-off or counterclaim and free and clear of and without deduction for or on account of any future or present taxes, levies, imposts, duties, charges, fees, deductions, or withholdings, now or hereafter levied, collected, withheld or assessed by a governmental authority.