PROFORMA FOR BANK GUARANTEE FOR MOBILISATION ADVANCE

(ON NON - JUDICIAL PAPER OF APPROPRIATE VALUE)

To

M/s (Developer Name)

BANK GUARANTEE NO: ............................................... Dated: ..............................

This deed of Guarantee made on this (execution Date of the BG) by _____________ Bank, ______________________,
having its Registered office at_____________________________________, constituted and established under the
Banking Companies Acquisition and Transfer of Undertaking Act, hereinafter called “the Bank” (which expression shall,
unless repugnant to the context or contrary to the meaning thereof, include its successors and assigns) in favour of
______________________________________(name of the contractor and their address) hereinafter called “the
Contractor” (which expression shall thereof include its successors and assigns).

WHEREAS, the Contractor has placed its Notice of Award for the Construction of (name of the work and project name),
hereinafter called “the Said Project”.

WHEREAS, in accordance with one of the conditions of the Contract bearing No. ____________ of the said Project,
hereinafter called the said “Contract Agreement”, the M/s (Developer Name), a Company incorporated under the
Companies Act and having its Registered Office at _______________________________ hereinafter called “the Project
Manager” (which expression shall unless repugnant to the context or contrary to the meaning thereof, include its
successors and assigns) has agreed to make to the Contractor an interest free Mobilisation Advance payment of Rs
_______________/- (Rupees _______________________________Only), hereinafter known as the said Mobilisation
Advance, against a Bank Guarantee from a scheduled Bank in this format acceptable to the Project Manager.

NOW THIS DEED WITNESSED AS UNDER:

1. In consideration of awarding the Contract for the said Project having at the request of the Contractor agreed to
accept a bank Guarantee in respect of an interest free Mobilisation Advance payment of Rs ___________/-
(Rupees _______________________Only), to the Contractor by the Project Manager, the Bank hereby
undertake to pay the amount of the said Mobilisation Advance without protest or demur and without recourse to
the Contractor, to the Project Manager up to and not exceeding altogether a sum Rs ___________/-(Rupees
_______________________Only), being the amount of the said Mobilisation Advance, on a demand from the
Project Manager stating that the amount claimed is due by way of loss or damages caused to, or would be
caused to, or suffered by the Project Manager by reason of any breach by the said Contractor of any terms and
conditions contained in the said Contract Agreement. Any such demand made on the Bank shall be conclusive
as regards the amount due and payable by the Bank under this Guarantee. However, our the liability of the
Bank under this Guarantee shall be restricted to an amount not exceeding
Rs ___________/-(Rupees _______________________Only), and interest due thereon from time to time.

2. This Guarantee shall come into force immediately on payment of the said Mobilisation Advance of Rs
___________/-(Rupees _______________________Only), to the Contractor by the Project Manager and shall
remain in force until (a) payment has been made to the Project Manager by the Bank of aforementioned
aggregate amount payable hereunder or (b) the said Mobilistion Advance has been fully adjusted and
extinguished as hereinafter setforth or (c) till all dues of the Project Manager under or by virtue of the said
Contract Agreement have been fully paid and its claims satisfied or discharged by the said Contractor and
accordingly discharges this Guarantee, whichever is earlier, but not beyond ____________( Expiry Date) unless
a demand or claim under this Guarantee is made on the Bank in writing by the Project Manager on or before
____________( Expiry Date), the Bank shall be discharged from all liability under this Guarantee thereafter.

3. We, the Bank, further agree with the Project Manager that the Project Manager shall have the fullest liberty
without consent and without affecting in any manner or obligations hereunder to vary any of the terms and
conditions of the said Contract from time to time or to postpone for any time or from time to time any of the
powers exercisable by the Project Manager against the said Contractor and to enforce or forebear any of the
terms and conditions relating to the said Contract Agreement and the Bank shall not be relieved from its
responsibility by reason of any such variation, or extension being granted to the said Contractor or for any other
forbearance act or commission on the part of the Project Manager or any indulgence by the Project Manager to
the said Contractor or by other such matter or thing whatsoever which under the law relating to sureties would,
but for this provision, have effect of so relieving us from such liability.

4. This guarantee shall not be affected by any change in the constitution of the bank or the Contractor.
5. The decision of the Project Manager as to whether the terms and conditions of the Contract Agreement have
been observed or any breach is committed by the Contractor relating thereto, shall be final and binding on the
Bank.

6. Unless previously cancelled by the Project Manager, this guarantee shall remain in force up to
____________( Expiry Date). However, if for any reason by the aforesaid date (a) the amount of the
Mobilisation Advance is not fully recovered, or (b) till all dues of the Project Manager under or by virtue of the
said Contract Agreement have been fully paid and its claims satisfied or discharged by the said Contractor, the
Bank hereby agrees to further extend this Guarantee as may be directed by the Contractor till such time as may
be determined by the Project Manager.

7. We, the Bank, lastly undertake not to revoke this Guarantee during its currency except with the previous
consent of the Project Manager in writing.

WITNESS WHEREOF this deed is executed by the duly authorised officials of the Bank at __________on
the____________.

Notwithstanding anything contained herein, before our liability under this Guarantee is filled against us before the date,
all your rights under the said Guarantee shall be forfeited and we shall be released and discharged from all liabilities
hereunder.

1. Our Liability under this guarantee shall not exceed Rs ___________/-(Rupees _______________________Only)

2. The Bank Guarantee shall be valid up to ____________( Expiry Date)and

3. We are liable to pay the guarantee amount or any part there of under this Bank Guarantee only, and only if you
serve upon us a written claim or demand on or before ____________( Expiry Date)

Date the ________day of ____________

For and on behalf of the Bank

................................................................................................................
(Seal of the Bank) <Signature and name of authorised officer of the bank>

The above Guarantee is accepted by the Project Manager

For and on behalf of the Project Manager

(Seal of the Project Manager) Date the <day> day of <month> <year>

........................................................................
<Signature, name of Project Manager>