PERFORMANCE BANK GUARANTEE

M/s. Jindal India limited

BANK GUARANTEE NO. ______________

We the [Insert Name of the Bank], [Insert address of the Bank] (hereinafter referred to as
“_______Bank”) understand that you have placed a Contract No. ____________________ dated
______________ hereinafter referred to as the Contract on M/s. [Insert name of the Vendor
entity] (hereinafter referred to as "the Applicant") having its registered office at [Insert Vendor’s
address] for [Insert purpose of the Contract e.g. Supply, Service, Supply & Service, Erection etc.]
and under the terms of the said Contract, you are to release final payment to the Applicant a sum
of ₹[Insert retention amount in figures]/-(Rupees Insert retention amount in words only) being
[Insert retention percentage] % of the Contract Price i.e. [Insert retention percentage]% of ₹
[Insert Contract Price figures] (Rupees [Insert Contract Price words only) as stipulated in the
said Contract. Therefore the maximum amount for the purposes of this Performance Bank
Guarantee shall be of ₹ [Insert retention amount in figures]/- (Rupees Insert retention amount in
words only) for Warranty under Defect Liability Period of ___ months from the date of release of
final payment.
In consideration of the receipt by the Applicant of the amount specified in the Contract, we
[Insert Name of the Bank], [Insert address of the Bank] do hereby give you guarantee and
undertake to pay you any amount or amounts not exceeding ₹ [ Insert retention amount in
figures]/- (Rupees Insert retention amount in words only).

We _______ Bank, do hereby agree and undertake that, if in your opinion, the Applicant has
failed in performing its Contractual obligations during the warranty period under the said
Contract, then, we shall on demand and without contest or protest or demur or proof or condition
and without reference or recourse to the Applicant immediately pay to you in any manner in
which you may direct the said amount or such portion thereof as may be demanded by you not
exceeding the sum of ₹ [Insert retention amount in figures]/- (Rupees Insert retention amount in
words only). Any such demand made by you on us shall be final and conclusive as regards the
amount due and payable by the Bank. Payment pursuant to this guarantee may be demanded by
you and will be met by us without any question as to whether occasion or ground has arisen for
such demand and your demand in this regard shall be final.

We, ________Bank further agree that, you shall have the fullest liberty without our consent and
without affecting in any manner our obligations hereunder to vary any of the terms and
conditions of the said Contract, to extend the time of delivery/ completion or to postpone for any
time and from time to time, any of the powers exercisable by you against the Applicant and to
forbear or enforce any of the powers relating to the said Purchase Order and we shall not be
relieved from our obligations by reason of such variation or extension or forbearance or
enforcement or any other act or omission on your part or any indulgence by you to the Applicant
or by any such matter or thing whatsoever which under the law relating to the sureties would, but
for this provision, have the effect of so relieving us.

We, _______Bank agree that, the amount hereby guaranteed shall be due and payable to you on
our being served, during banking hours, with a notice requiring payment of the amount.

We, _______ Bank, further state that claims under this Guarantee can be made effective and shall
take effect from the date of release of retention money to the Applicant by you under the said
Contract.

We, _______ Bank, undertake not to revoke this Guarantee during its currency except with your
previous consent in writing. We further undertake to keep the Guarantee renewed, value
enhanced/marked up from time to time at the request of the Applicant.

Notwithstanding anything stated herein above the liability of the Bank under this Guarantee is
restricted to ₹ [Insert retention amount in figures]/- (Rupees Insert retention amount in words
only). Provided however, this Guarantee can be enforced by you any number of times as long as
the aggregate liability of the Bank on account of such claims or demands made by you does not
exceed the aforesaid amount of ₹ [Insert retention amount in figures]/- (Rupees Insert retention
amount in words only).

The Guarantee herein contained shall not be determined or affected or suspended by the
liquidation or winding up or dissolution or changes of constitution or insolvency of the said
Applicant but shall in all respects and for all purposes be binding and operative until payment of
all money due or liabilities, contractual obligations under the said Contract are fulfilled.

This Guarantee shall remain in full force till _____________. Unless a demand or claim is made
on us in writing within 90 days from the aforesaid date ___________.
Notwithstanding anything to the contrary contained herein –

i. Our liability under this Guarantee shall not exceed ₹ [ Insert retention amount in
figures]/- (Rupees Insert retention amount in words only).
ii. This Guarantee shall be valid up to ____________ (Expiry Date).
iii. The beneficiary’s right as well the Bank’s liability under this Guarantee shall stand
extinguished unless a written claim or demand is made under this Guarantee on or before
completion of one year from expiry date i.e. ____________.

All terms not specifically defined in this bank guarantee shall have the same meaning as under
the said Purchase Order.

This guarantee is non-transferable.

Place: ________________ For [Insert Name of the Bank]

In presence of Witnesses:

1. ______________________
Name:
Address:

2. ______________________
Name:
Address: