Document background
The Guarantee Fee Agreement is essential in transactions where one party provides a guarantee in favor of another in exchange for a fee. This document is commonly used in corporate group structures, project finance, and financial services arrangements under Dutch law. The agreement specifies how the guarantee fee is calculated, when and how it should be paid, and what happens in case of default. It's particularly important in situations involving parent company guarantees, bank guarantees, or other financial support arrangements where the guarantor requires compensation for the risk they're taking on. The document needs to comply with Dutch civil law requirements and, where applicable, financial regulatory requirements. The Guarantee Fee Agreement typically forms part of a larger transaction structure and may need to align with other finance documents such as facility agreements, security documents, or intercreditor arrangements.
