PERFORMANCE SECURITY

(BANK GUARANTEE FORMAT)

WHEREAS [●] [insert name of the Buyer] (hereinafter referred to as the “Buyer” or “You”) has
placed an order on [●] [insert name of the Seller] (hereinafter referred to as the “Seller”) vide
purchase order number [●], dated [●]and having a value of [●] ([●] only) [insert the value of the
purchase order and the applicable currency] (hereinafter referred to as the “PO Documents”) and
has agreed that the Seller shall furnish to You a Performance Security of [●] ([●] only) [insert bank
guarantee value and the applicable currency] for the faithful performance of the Seller’s warranty
obligations and rectification of Defects during the Defect Liability Period, in accordance with the
terms of the aforesaid PO Documents. AND WHEREAS, the Bank (as defined herein below)
undertakes to furnish an unconditional and irrevocable bank guarantee, on behalf of the Seller, in
the form and manner hereinafter specified. Therefore, we, [●] [insert details of the Bank issuing the
guarantee] (hereinafter referred to as the “Bank” or “We” or “Us”), do hereby covenant and agree
with You as follows:

1. We hereby irrevocably and unconditionally guarantee and undertake to pay to You, forthwith
and on your first demand or claim in writing, any and all amounts payable with respect to
losses, damages, costs or expenses incurred on account of default on the part of the Seller in
relation to the Seller’s warranty obligations, including rectification of Defects during the Defect
Liability Period in accordance with the terms of the PO Documents, a sum not exceeding [●]
([●] only) [insert the guaranteed amount and the applicable currency] (hereinafter referred to
as the “Guaranteed Amount”). We shall, forthwith on first demand or claim in writing by You,
without recourse and without any demur, reservation, contest or protest whatsoever, pay to
You any sum or sums not exceeding in the true total, the Guaranteed Amount, as may be
claimed by You to be due from the Seller by way of such amounts payable by reason of any
defaults or non-performance on the part of the Seller in terms of the PO Documents
(hereinafter referred to as the “Guarantee”).

2. This Guarantee shall continue and hold good until it is released by You after completion of the
Defect Liability Period in accordance with the terms of the PO Documents, provided always that
this Guarantee shall come into effect from the date of this Guarantee and shall remain in force
till [●] [insert date till which this Guarantee is valid] with a claim period of 1 (one) month from
such date, i.e. up to [●] [insert date which shall be one month from the end of validity period]
or till such date as may be extended in terms of the PO Documents. In the event the time for
performance of the Seller’s obligation under the PO Documents is extended, this Guarantee
shall be extended by such equivalent time. Upon receipt of such extension notice, validity of
this Guarantee and the period to lodge any claims with the Bank shall be extended accordingly.

3. The Seller has assured the Buyer of due performance of all its obligations under the PO
Documents in accordance with the terms therein. Any demand or claim made by You in writing,
with respect to the amount due and payable by the Bank, shall be conclusive and binding on
the Bank, without any proof of such payments having become payable, and shall be payable
forthwith without any delay and in any case no later than the next business day from the date
of presentation of the letter of invocation of the Guarantee, notwithstanding any claim, dispute,
counter claim, assertion or proceedings pending before any court, tribunal, arbitrator or any
other authority, as liability under these presents being absolute and unequivocal and the Bank
hereby waives all such defences. Notwithstanding anything to the contrary, the Buyer’s
decision as to whether the Seller has made any such default or defaults as the amount to which
You are entitled by reason thereof shall be binding on Us and We shall not be entitled to ask
You to establish or provide any evidence in respect of the claims under this Guarantee but shall
pay the same on demand without any objection.

4. You shall have the liberty without affecting the Bank’s obligation under this Guarantee, to: (a)
modify the PO Documents or any part thereof; or (b) extend the time for performance of the PO
Documents by the Seller and either to enforce or forbear to enforce any of the terms and
conditions contained in or implied in the PO Documents and We shall not be released from our
liability under this Guarantee by reason of any time extension being provided to the Seller or
any other forbearance, act or omission on your part or any indulgence by You to the Seller or

Revision 1 dated October 17, 2020 Page 1 of 3

 by any variation or modification of the said PO Documents or any other act, matter or thing
whatsoever which under the law relating to sureties would, but for the provisions thereof, have
effect of so releasing Us from our liability hereunder. Provided always that nothing contained
herein shall enlarge our liability hereunder beyond the Guaranteed Amount or extend the
period of the bank guarantee beyond the expiry of the validity of this Guarantee, i.e. [●] [insert
date on which validity of this Guarantee expires], unless expressly agreed to by the Bank in
writing.

5. This Guarantee shall not in any way be affected by: (i) the Buyer taking or varying or giving up
any securities from the Seller or any other persons, firm or company on its behalf; (ii) the
winding up, dissolution, insolvency, bankruptcy, re-organisation, liquidation or death, as the
case may be, of the Seller; or (iii) inability to perform the PO Documents or to make payment
by the Seller, for any reason whatsoever and in such cases the Guaranteed Amount shall be
promptly paid by the Bank to the Buyer on demand.

6. No failure or delay on the Buyer’s part in exercising any right, power or privilege hereunder and
no course of dealing between You and Us, or the Seller, shall operate as a waiver thereof, nor
shall any single or partial exercise of any right, power or privilege hereunder preclude any
other or further exercise thereof or the exercise of any other right, power or privilege.

7. We further confirm that our obligations under this Guarantee shall, in all respects, be
irrevocable and unconditional during the tenure of this Guarantee until discharged by You.

8. This Guarantee shall cover all claim or claims of the Buyer against the Seller from time to time
arising out of non-compliance or default by the Seller with respect to any of the warranty
obligations, including rectification of Defects during the Defect Liability Period under the said
PO Documents and in respect of which your demand or notice in writing is received by Us
before [●] [insert date on which claim period expires]. The Buyer may make more than one
demand hereunder provided that the sum total of all demands shall not exceed the Guaranteed
Amount.

9. We irrevocably agree that You, at your option, shall be entitled to enforce this Guarantee
against Us as a principal debtor and not merely as surety, in the first instance, without
proceeding against the Seller and notwithstanding any security or other guarantee that You
may have in relation to the Seller’s liabilities under the PO Documents. This Guarantee and the
rights, powers and remedies herein contained are in addition to and not by way of limitation,
exclusion or substitution of any rights, powers or remedies which You would otherwise have or
any other guarantee here before given to You by Us (whether jointly) with others or alone and
now existing and that this Guarantee is not intended to and shall not revoke or limit such
guarantee or guarantees.

10. We agree that any notice under or pursuant to this Guarantee can be served upon: (i) the
Buyer at [●] [insert address of the Buyer]; and (ii) the Bank at its office at [●] [insert address of
the Bank]. If any notice is served after 1700 hours on a day, such notice shall be deemed to
have been served on the succeeding day. All notices, request, documents or other
communication under or pursuant to this Guarantee shall be deemed to have been served, if
served by hand delivery, when delivered, or when served through post or courier, within 5
(five) days of dispatch of such post or courier or receipt of such post or courier, whichever is
earlier. Either party may change their address for such notice or other communications by prior
written notice to the other party.

11. This Guarantee shall not be discharged due to:

(a) any change in the constitution of the Seller or Us nor shall it be affected by any change in
the Buyer’s constitution or by way of any merger or amalgamation thereof or therewith;

(b) any time extension or waiver granted to, or arrangement with, the Seller, or any other
person;

(c) any unenforceability, illegality or invalidity of any obligation of any person under the PO
Documents or of our obligation under this Guarantee; or

Revision 1 dated October 17, 2020 Page 2 of 3

 (d) any part performance of the PO Documents by the Seller.

12. You may assign this Guarantee to your affiliates, lenders, security agents or investor and in
such case You shall inform the Bank in writing. This Guarantee shall not be assigned or
transferred by the Bank.

13. We represent and warrant to You that We have duly executed and delivered this Guarantee,
and this Guarantee constitutes our legal, valid and binding obligation which is enforceable in
accordance with its terms.

14. If any one or more of the provisions contained in this Guarantee are or become invalid, illegal
or unenforceable in any respect, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

15. The Bank hereby declares that it has the power to issue this Guarantee under the applicable
law and the undersigned who are executing this Guarantee on behalf of the Bank have the
necessary powers to do so.

16. Notwithstanding anything contained herein, the Bank hereby confirms that:

(a) our liability under this Guarantee shall not exceed the Guaranteed Amount;

(b) this Guarantee shall be valid up to _______; and

(c) We are liable to pay the Guaranteed Amount or any part thereof under this Guarantee only
and only if You serve upon Us a written claim or demand on or before __________ [insert
validity of this Guarantee plus claim period] and if a written claim or demand has been
served upon the Bank thereto, the Bank shall be discharged of all liabilities under this
Guarantee upon payment of the Guaranteed Amount.

Dated this ___day of ____, 20__ at __________

For [___________] For [___________]

Authorized [___________] Authorized [___________]
Signatory Signatory
Name [___________] Name [___________]
Designation [___________] Designation [___________]
Place [___________] Place [___________]
Date [___________] Date [___________]

Revision 1 dated October 17, 2020 Page 3 of 3