Common use of SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY Clause in Contracts

SECURITY FOR PAYMENT OF INSTALMENTS BEFORE DELIVERY. The BUYER shall, within Five(5) Banking Days after signing of this CONTRACT, deliver to the SELLER an irrevocable and unconditional Letter of Guarantee (the “PAYMENT GUARANTEE”) in the form annexed hereto as Exhibit “B” in favour of the SELLER issued by NAVIGATOR HOLDINGS LTD. (hereinafter called the “Payment Guarantor”) acceptable to the SELLER’s bank and the SELLER. The PAYMENT GUARANTEE shall secure the BUYER’s obligation for the payment of all 2nd, 3rd ,4th and 5th instalments of the Contract Price. If the Payment Guarantor should merge with, or transfer the whole or substantially the whole of its assets to another entity (the “Successor”), then [unless the Successor automatically succeeds to all of the obligations of the Payment Guarantor under the PAYMENT GUARANTEE, the Payment Guarantor shall provide with Seller adequate prior notice in advance together with supporting documents of such transfer reasonably required by the Seller for its internal compliance purposes, and shall procure the Successor to issue a new PAYMENT GUARANTEE on the terms set out in Exhibit B, and the Parent Guarantor shall thereafter be discharged from liability under its PAYMENT GUARANTEE