BANK GUARANTEE AGREEMENT
THIS BANK GUARANTEE AGREEMENT is executed on this 07 day of December,
2024, at Jaipur, Rajasthan, by and between:
1. State Bank of India (SBI), a banking company incorporated under the State Bank of
India Act, 1955, having its registered office at State Bank Bhavan, Madame Cama
Road, Mumbai, Maharashtra - 400021, and one of its branch offices at Delhi
(hereinafter referred to as the "Bank"), which expression shall, unless repugnant to the
context or meaning thereof, include its successors and assigns;
2. State of Rajasthan, acting through its authorized officer, having its principal office at
Jaipur (hereinafter referred to as the "Beneficiary"), which expression shall include its
successors and assigns;
3. Mr. X, a citizen of Ukraine, having his principal place of business at Hyderabad
(hereinafter referred to as the "Applicant"), which expression shall, unless repugnant
to the context or meaning thereof, include his successors and assigns.
WHEREAS:
1. The Applicant has entered into an agreement dated 07/12/2024 with the Beneficiary
for the installation of mine extraction machinery, handling personnel appointment and
training, and ensuring the extraction of high-quality minerals (hereinafter referred to
as the "Project").
2. As per the agreement, the Beneficiary has agreed to purchase extracted minerals at
$15,000 per ton, subject to the quality standards specified in the agreement.
3. The Applicant has agreed to furnish a bank guarantee to the tune of $15,000,000
(Fifteen Million US Dollars) as a performance guarantee for the obligations under the
agreement.
NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. The Bank hereby irrevocably and unconditionally guarantees to pay the Beneficiary,
on demand, any or all amounts not exceeding $15,000,000 (Fifteen Million US
Dollars), without demur or objection, upon:
a) Failure of the Applicant to perform obligations as stipulated in the agreement dated
___.
b) Breach of the quality standards of the minerals extracted, resulting in damages
payable to the Beneficiary as per the agreement.
2. This Bank Guarantee shall remain valid and enforceable for a period of ___ years,
commencing from the date of issuance of this guarantee, unless terminated earlier by
mutual written agreement of the parties.
3. The Beneficiary may invoke this Bank Guarantee by submitting a written demand,
along with supporting evidence of the Applicant’s default, to the Bank. Such demand
shall specify the amount claimed and the nature of the breach.
4. Upon receipt of the Beneficiary's demand, the Bank shall make the payment without
delay, and in any case within seven (7) business days, irrespective of any dispute or
objection raised by the Applicant.
5. In the event of any dispute arising between the Beneficiary and the Applicant under
the underlying agreement, such disputes shall not impede or delay the Bank’s
obligation to honor the guarantee. However, disputes shall be resolved as per the
dispute resolution mechanism stated in the agreement dated 07/12/2024.
a) The Bank's liability under this guarantee is limited to $15,000,000.
b) This guarantee is non-transferable and non-assignable.
c) The Bank's obligation ceases upon expiry of this guarantee or fulfilment of all
obligations under this guarantee, whichever occurs earlier.
6. This Bank Guarantee Agreement shall be governed by and construed in accordance
with the laws of India. Any disputes arising hereunder shall be subject to the exclusive
jurisdiction of the courts in Jaipur, Rajasthan.
All notices under this Bank Guarantee shall be addressed to:
• For the Beneficiary: ____________________
• For the Applicant: ____________________
• For the Bank: ____________________
IN WITNESS WHEREOF, the parties have executed this Bank Guarantee Agreement
on the day and year first above written.
For and on behalf of State Bank of India
Authorized Signatory
(Seal)
For and on behalf of the State of Rajasthan
Authorized Signatory
(Seal)
Acknowledged by Mr. X
Signature: __________________
Date: __________________
