GUARANTEE (Sample)

THIS AGREEMENT IS MADE the ______day of _______________20_______

BETWEEN

(1) __________________________________________________ (the “Guarantor”); and

(2) ___________________________________________________ (the “Creditor”).

NOW IT IS HEREBY AGREED as follows:

1. As an inducement for the Creditor, from time to time extend credit to ________________
2. _________________ (the “Customer”), it is hereby agreed that the Guarantor does hereby guarantee to the Creditor the prompt, punctual and full payment of all monies now or hereinafter due to the Creditor from the Customer.

3. Until termination, this guarantee is unlimited as to amount or duration and shall remain in full force and effect notwithstanding any extension, compromise, adjustment, forbearance, waiver, release or discharge of any party or guarantor, or release in whole or in part of any security granted for the said indebtedness or compromise or adjustment thereto, and the Guarantor waives all notices thereto.

4. The obligations of the Guarantor shall at the election of the Creditor be primary and not necessarily secondary and the Creditor shall not be required to exhaust its remedies as against the Customer prior to enforcing its rights under this guarantee against the Guarantor.

5. The guarantee hereunder shall be unconditional and absolute and the Guarantor waives all rights of subrogation and set-off until all sums due under this guarantee are fully paid.

6. In the event payments due under this guarantee are not paid punctually upon demand, then the Guarantor shall pay all reasonable costs and solicitors’ fees necessary for the collection and enforcement of this guarantee.

7. This guarantee may be terminated by the Guarantor upon …………….. days written notice of termination being delivered to the Creditor. Such termination shall extend only to credit extended by the Creditor after the expiry of the said …………… days period and not to prior extended credit, or goods in transit received by the Customer after the expiry of the fourteen day period.

8. The Guarantor warrants and represents it has full authority to enter into this guarantee.

9. This guarantee shall be binding upon and inure to the benefit of the parties, their successors and assigns.

IN WITNESS OF WHICH the parties have signed this agreement the day and year first above written

(For INDIVIDUALS)                                                                                          (For COMPANIES)

____________________                                                           Signed for and on behalf of:

Signed by the Customer                                               ________________________LTD

_______________________                                   _____________________________

In the presence (witness)                                            Director

__________________________                           ______________________________

Name                                                                                    Secretary

___________________________                        Signed for and on behalf of:

Address                                                                               ___________________________LTD

____________________________                     ___________________________

Occupation                                                                         Director

                                                                                                _____________________________

___________________________                        Secretary

Signed by the Creditor

___________________________

In the presence of (Witness)

___________________________

Name

___________________________

Address

____________________________

Occupation.