BANK GUARANTEE BOND (IN LIEU OF RETENTION MONEY) Bank Guarantee No.

Place of Execution: Dated : State :

1. In consideration of the president of India (hereinafter called the Government) having agreed not to
retain Rs. 70,000/- (Rupees Seventy thousand Only) out of the reserve or the retention money as provided under the terms and conditions of the contract agreement No. CWE/AMB/S-03/2010-11 Special repair to Bldg. No. 4 of 2 Corps ORD Main Coy under GE (south) Ambala Cantt (hereinafter called the said Agreement) made between the President of India and Partnership Concern (i) Shri Sudesh Kumar Kathuria S/o Late Sh. Bhagwan Dass Kathuria R/O 179, The Mall Ambala Cantt (ii) Shri Amit Kathuria S/o Sh. Sudesh Kumar Kathuria R/o 179 The Mall Ambala Cantt, carrying on business in partnership under the name and style of M/s Bhagwan Dass & Sons an existing firm having its office at 179, The Mall Ambala Cantt. (hereinafter called the said Contractor which expression shall unless the context requires otherwise include their successors and assigns) from claim of the said contractors, in respect of the work done by the said contractors for due the fulfillment by the said contractors of the terms and condition contained in the said Agreement on production of a Bank Guarantee of Rs. 60,000/- (Rupees Sixty thousand Only) we Indian Oversees Bank Ambala Cantt (hereinafter referred to as the Bank) do hereby undertake to pay the Government, an amount not exceeding. Rs. 60,000/- (Rupees Sixty thousand Only) against any loss or damage caused to or suffered or would be caused to or suffered by the Government, by reason of any breach by said contractors of any of the terms or conditions contained in the said agreement.

Contd2

-22. We, Indian Oversees Bank, do at the request of the said contractors hereby undertake to pay the
amount due and payable under this Guarantee without any demur, merely on a demand from the Government, stating that the amount claimed is due by way of loss or damage caused to or suffered or would be caused to or suffered by the Government by reason of any breach by the said contractors of any of the terms and conditions contained in the said agreement or by the reason of the said contractors failure to perform the said Agreement. Any such demand made on the Bank shall be conclusive as regards the amount due and payable by and liability of the Bank, under this Guarantee and we, Indian Oversees Bank do hereby undertake to pay the government the amount demanded notwithstanding any dispute or disputes raised by the said Contractors on any ground whatsoever and notwithstanding any proceedings pending in any court or tribunal relating to the said agreement or this guarantee, the liability of the bank under this Guarantee being absolute and unconditional. However our liability under this guarantee shall be restricted to an amount not Rs. 60,000/- (Rupees Sixty thousand Only)

3. We, Indian Oversees Bank, further agree that the Guarantee herein contained shall remain in full
force and effect during the period that would be taken for the performance of the said agreement and that it shall continue to be enforceable till all the dues of the government under or by virtue of the said agreement have been fully paid and its claims satisfied or discharged or till the Commander Works Engineer, Ambala Cantt certifies that the terms and conditions of the said agreement have been fully and properly carried out by the said contractor and accordingly discharges this guarantee. Unless a demand or claim under this guarantee is made on us in writing on or before the 10/08/2012 we shall be discharged from all liability under this guarantee thereafter.

4.

We, Indian Oversees Bank, Ambala Cantt, further agree with the Government that the Government shall have the fullest liberty without our consent & without affecting in any manner our obligations here under to vary any of the terms & conditions of the said Agreement or to extend the time of performance by the said contractor(s) from time to time or to postpone for any time or from time to time, any of the powers exercisable by the Government against the said contractor (s) & to forbear or enforce any of the terms & Conditions relating to the said Agreement & we shall not be relieved from our liability by reason of any such variation or extension being granted to the said Contractors for any forbearance, act or omission on the part of the Government or any indulgence by the Government to the said Contractor(s) or by any such matter or thing whatsoever which under the law relating to the sureties would, but for this provision have effect of so relieving us. Contd3

-35. We, Indian Oversees Bank lastly undertake not to revoke this Guarantee during its currency except with the previous consent of the Govt. in writing and that our liabilities under this guarantee shall not be impaired or extinguished on account of any change in the constitution of the said contractor(s).

6. Notwithstanding what its stated here in above our liability under this Guarantee is restricted to
Rs. 60,000/- (Rupees Sixty thousand Only) and shall be valid up to 10-08-2012 unless a demand/claim is made to us in writing on or before that date we shall be discharge from all liabilities under this guarantee. Please Note

a.

Our liability under this Bank Guarantee shall not be exceed Rs. 60,000/- (Rupees Sixty thousand Only) This Bank Guarantee shall be valid upto 10-08-2012

b.

We are liable to pay the Bank Guarantee amount or any part there of under this Bank Guarantee only and if you serve upon us a written claim on demand on or before 10-08-2012 (date of expiry of Bank Guarantee 10-08-2012.

Date : 10-02-2012

The above guarantee is accepted by the President of India Date : -02-12 Vipin Kumar IDSE Commander Works Engineer, Ambala Cantt. Accepting Officer, For and on the behalf of the President of India.