Annex E EXAMPLE FORM OF

CONDITIONS
GENERAL

ADVANCE PAYMENT
GUARANTEE
Guarantee No.: [insert guarantee
GUIDANCE

reference number] The Guarantor:

[insert name and address of
place of issue, unless indicated in the letterhead]

Name of Contract/Contract No.:

[insert reference number or
other information identifying the contract between the Applicant and the
FORMS

Beneficiary on which the guarantee is based]

The Beneficiary (the “Employer”):

[insert name and address of the
Beneficiary]

We have been informed that

[insert name and address
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of the Contractor] (hereinafter called the “Applicant”) is your Contractor under

such Contract and wishes to receive an advance payment, for which the
Contract requires him/her to obtain a guarantee.
At the request of the Applicant, we [insert name of
Guarantor] hereby irrevocably undertake to pay you, the Beneficiary/Employer,
any sum or sums not exceeding in total the amount of [insert in figures
and words the maximum amount payable and the currency in which it is
payable] (the “Guaranteed Amount”) upon receipt by us of your demand in
writing and your written statement that:
(a) the Applicant has failed to repay the advance payment in
accordance with the Conditions of Contract, and

(b) the amount of the advance payment which the Applicant has failed to
repay.
This guarantee shall become effective upon receipt [of the first instalment] of the
advance payment by the Applicant. The Guaranteed Amount shall be reduced by
the amounts of the advance payment repaid to you, as evidenced by your
notices issued under Sub-Clause 14.6 of the Conditions of Contract. Following
receipt of a copy of each purported notice, we shall promptly notify you of the
revised Guaranteed Amount accordingly.
Any demand for payment must contain your signature(s) which must be
authenticated by your bankers or by a notary public. The authenticated
demand and statement must be received by us at the following office [insert
address of office] on or before
[insert the date 70 days after the expected expiry of the Time for Completion]
(the “Expiry Date”), when this guarantee shall expire.

The party liable for the payment of any charges: [insert the name
of the party].
This guarantee shall be governed by the laws of

[insert the law governing the guarantee], and shall be subject to the Uniform
Rules for Demand Guarantees (URDG) 2010 Revision, ICC Publication No. 758.
Signed by: Signed by(1):
(signature)

(signature)