Total-EPC-Book=180920

3-135 | EPC Template
Schedule X
Form of Parent Guarantee
In the form of guaranty below, the Contractor’s parent firm provides assurance of Contractor’s performance
and payment under the EPC contract.
This form is easily modified for use as a payment guaranty if such a guaranty is required as a condition
of financing by the project finance lender.
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CORPORATE GUARANTEE AGREEMENT
THIS AGREEMENT is made as of ________________, ______, by Owner’s Parent, a
[Description of legal entity] (“Guarantor”).
R E C I T A L S :
A. [Legal name and description of Contractor] (“Obligor”) and [Legal name and
description of Owner] are entering into an Engineering, Procurement and Construction
Agreement dated [the date hereof] (the “Design and Construction Agreement”) for the
development and construction of a [RET description] facility that will produce electric
capacity and energy, to be located [Location of facility] in [City, Country]
{“Project”).
B. Owner has required that the Guarantor guarantee the Obligations (defined below) as a
condition to the Owner’s willingness to enter into the Design and Construction
Agreement. The Obligor is a wholly-owned subsidiary of the Guarantor. The
development and construction of the Project and the transactions contemplated by the
Design and Construction Agreement will provide direct benefits to the Obligor and will
therefore indirectly benefit the Guarantor.
C. The term “Obligations” means all of the obligations of the Obligor to Owner under
the Design and Construction Agreement of whatever nature, however arising, whether
due or not due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, secured or unsecured, and whether the Obligor is liable individually or
jointly with others, but subject to the limitations set forth in the Design and Construction
Agreement.
C O V E N A N T S :
IN CONSIDERATION OF these premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed
that:
1. The Guarantor hereby (a) unconditionally guarantees the full and prompt payment and
performance of the Obligations when due, whether by acceleration or otherwise, or (if