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Guarantee Fee Agreement
"I need a Guarantee Fee Agreement for our bank to receive a 2% annual fee for providing a performance guarantee to a construction company, with the agreement starting from March 1, 2025, and running for three years."
1. Parties: Identifies and defines all parties to the agreement
2. Background: Sets out the context and purpose of the guarantee fee arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Fee Structure: Details the guarantee fee amount, calculation method, and payment terms
5. Payment Terms: Specifies when and how payments should be made
6. Duration: Specifies the term of the agreement
7. Termination: Sets out circumstances and process for ending the agreement
8. Governing Law and Jurisdiction: Specifies that English and Welsh law governs the agreement and establishes jurisdiction for disputes
1. Tax Provisions: Details tax treatment of fees and VAT considerations where applicable
2. Currency Provisions: Specifies currency conversion rules and exchange rate mechanisms for cross-border arrangements
3. Force Majeure: Covers circumstances beyond parties' control that may affect performance of the agreement
4. Data Protection: Provisions relating to handling of personal data under GDPR and Data Protection Act 2018
5. Regulatory Compliance: Additional provisions for compliance with FCA regulations and other relevant regulatory requirements
1. Fee Calculation Schedule: Detailed methodology for calculating guarantee fees including any variables or formulas
2. Payment Schedule: Timeline of payment dates and amounts throughout the agreement term
3. Form of Notice: Template for formal notices required under the agreement
4. Guarantee Terms: Details of the underlying guarantee arrangement to which the fee relates
Authors
Business Day
Commencement Date
Confidential Information
Default Event
Effective Date
Fee
Fee Payment Date
Guarantee
Guarantee Amount
Guarantee Fee
Guarantee Period
Guaranteed Obligations
Guarantor
Interest Rate
Law
Notice
Parties
Payment Currency
Principal Debtor
Principal Documents
Representatives
Security
Term
Termination Date
Transaction Documents
VAT
Working Day
Payment of Guarantee Fee
Calculation of Fee
Payment Terms
Currency and Exchange Rates
Taxes and VAT
Duration
Representations and Warranties
Undertakings
Information Obligations
Default Events
Consequences of Default
Termination
Confidentiality
Assignment and Transfer
Notices
Amendments and Waivers
Severability
Counterparts
Third Party Rights
Set-off
Force Majeure
Entire Agreement
Costs and Expenses
Governing Law
Jurisdiction
Dispute Resolution
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