GAIL (India) Limited MECON LIMITED

F-10Sheet 1 of 2PROFORMA OF BANK GUARANTEE FOR CONTRACT PERFORMANCE SECURITY(ON NON-JUDICIAL PAPER OF APPROPRIATE VALUE)TO:M/s GAIL (India) LimitedDear Sir,M/s_______________________________________________________ have been awarded thework of __________________________________________________________ for GAIL(India) Limited,16, Bhikaiji Cama Place, R.K. Puram, NEW DELHI.The Contracts conditions provide that the CONTRACTOR shall pay a sum of Rs. __________(Rupees _________________________________________________________________ ) asfull Contract Performance Guarantee in the form therein mentioned. The form of payment ofContract Performance Guarantee includes guarantee executed by Nationalised Bank,undertaking full responsibility to indemnify GAIL (India) Limited, in case of default.The said ___________________________________________________ has approached us andat their request and in consideration of the premises we having our office at_________________________________ have agreed to give such guarantee as hereinaftermentioned.1. We ___________________________________________________ hereby undertakeand agree with you that it default shall be made by M/s ______________________________________ in performing any of the terms and conditions of the tender or inpayment of any money payable to GAIL (India) Limited we shall on demand pay withoutany recourse to the contractor to you in such manner as you may direct the said amountof Rupees ______________________________ only or such portion thereof notexceeding the said sum as you may from time to time require.2. You will have the full liberty without reference to us and without affecting thisguarantee, postpone for any time or from time to time the exercise of any of the powersand rights conferred on you under the contract with the said ________________________________________ and to enforce or to forbear from endorsing anypowers or rights or by reason of time being given to the said ________________________________ which under law relating to the sureties would but for provision havethe effect of releasing us.3. Your right to recover the said sum of Rs. ____________________________________________________ (Rupees __________________________________) from usin manner aforesaid will not be affected or suspended by reason of the fact that anydispute or disputes have been raised by the said M/s _______________________________ and/ or that any dispute or disputes are pending before any officer, tribunalor court.\\Rajesh\RAJESH\Cavery\Tender\Construction Tender-Vol - I of II.doc