Common use of Provision of Guarantees Clause in Contracts

Provision of Guarantees. 3.5.1 On or before the Effective Date, each of the Parties making up the Contractor (other than the National Company) will provide to the State and acceptable guarantee that should be, at the discretion of the Ministry, either (i) an Affiliate Company guarantee in the form stipulated in Annex D from an Affiliate Company or (ii) an irrevocable standby letter of credit from a first- class international financial institution in up to the amount of … million Dollars ($...MM), which corresponds to the minimum expenditure obligations of the Contractor under this Contract for the First Exploration Sub-Period, and which will remain valid until the Contractor has complied with this obligation of minimum expenditures. In any case, the amount of the guarantee will be reduced as a function of sums expended that are related to the work obligations carried out to the degree that they are complete. If the Parties that make up the Contractor (except the National Company) do not provide the Ministry with the guarantees demanded by the date established under this Article 3.5.1, this Contract will be considered null and void, if the Contractor does not succeed in remediating the noncompliance within thirty (30) days of being notified of it.

Provision of Guarantees. 3.5.1 On or before the Effective Date, each of the Parties making up the Contractor (other than the National Company) will provide to the State and State, guarantee acceptable guarantee that should be, at the discretion of to the Ministry, either (i) an Affiliate Company guarantee in the form stipulated in Annex D from an Affiliate Company or (ii) an irrevocable standby letter of credit from a first- first-class international financial institution in up to the amount of … five million Dollars ($...MM5MM), which corresponds to the minimum expenditure obligations of the Contractor under this Contract for the First Exploration Sub-Period, and which will remain valid until the Contractor has complied with this obligation of minimum expenditures. In any case, the amount of the guarantee will be reduced as a function of sums expended that are related to the work obligations carried out to the degree that they are complete. If the Parties that make up the Contractor (except the National Company) do not provide the Ministry with the guarantees demanded by the date established under this Article 3.5.1, this Contract will be considered null and void, if the Contractor does not succeed in remediating the noncompliance within thirty (30) days of being notified of it.