(For Performance Guarantee to be issued by Insurance Company)

PERFORMANCE GUARANTEE

THIS GUARANTEE is given the ....................... day of ....................................

BY.................................................................……………………..........................................................................................
………………................................................………………………………………............................ [name of Guarantor]
of ...........................................................................................................................................................................................
..............................................................................................................[address, etc] (hereinafter called " the Guarantor")

IN FAVOUR OF the HOUSING & DEVELOPMENT BOARD, SINGAPORE (Employer, including its Assigns and
Successors in law) of HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 (hereinafter called "the Employer").

WHEREAS

(1) The Employer has accepted the tender submitted by …………………………………………………….

…………...............................................................................……………… of ……...…………………………………..
.............……………………………………….................................................(hereinafter called "the Contractor") for
…………………………….…………………………………………………………………………………………...…………………
………………….....................................................................................................................................................................
.................................................................. (hereinafter called the "said Works") resulting in a contract for the said Works
(hereinafter called "the Contract").

(2) The Guarantor has agreed to guarantee the due performance of the Contract in the manner hereinafter
appearing

NOW THE GUARANTOR HEREBY AGREES with the Employer as follows:-

In consideration for the Employer not insisting on the Contractor paying cash as a Security Deposit for the Contract the
Guarantor hereby undertakes as follows:

1. The Guarantor unconditionally and irrevocably undertakes and covenants to pay in full forthwith upon demand
in writing any sum or sums that may from time to time be demanded by the Employer up to a maximum aggregate sum
of Dollars ………………………………………………………………………………….…………………………………………..
…………………………………………….................................................................................... ($...............……………..... )
without requiring any proof that the Employer is entitled to such sum or sums under the Contract or that the Contractor
has failed to execute the Contract or is otherwise in breach of the Contract. Any sum or sums so demanded shall be
paid forthwith by the Guarantor unconditionally, without any deductions whatsoever and notwithstanding the existence
of any differences or disputes between the Employer and the Contractor arising under or out of or in connection with the
Contract or the carrying out of work thereunder or as to any amount or amounts payable thereunder and
notwithstanding that such differences or disputes have been referred to arbitration or are the subject of proceedings in
Court or is in the midst of any other means of dispute resolution.

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PG FOR BUILDING CONTRACTS 042013
2. The Guarantor shall not be discharged or released from this Guarantee by any arrangement made
between the Contractor and the Employer without the assent of the Guarantor or by any alteration in the obligations
undertaken
. by the Contractor or in the Works to be done thereunder or by any forbearance whether as to payment
time performance or otherwise or by any other indulgence or matter of whatever nature accorded by the Employer to
the Contractor.

3. This Guarantee shall take effect from the date hereof and remain in full force and effect until (please
refer to table 1 for formula to compute initial expiry date) provided always that the expiry date of this
Guarantee and the Guarantor’s liability thereunder shall be automatically extended for successive periods of 6
months unless the Guarantor gives the Employer 90 days' written notice prior to the expiry of the Guarantor’s liability
of their intention not to extend this Guarantee in respect of any future extension and provided further that the
Employer shall be entitled, upon receiving such notice of the Guarantor’s intention (and within the period specified
in Clause 4 hereof), either to:
(a) make a claim under this Guarantee; or
(b) direct the Guarantor to extend the validity of this Guarantee for a further period not exceeding 12
months (and this Guarantee shall then expire at the end of such further period).

For the purpose of this clause, service of the above 90 days’ written notice shall be due service only if it is addressed
st
to the Group Director (Development & Procurement) and the same being received by him at 21 Storey West Wing,
HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 or such other address stipulated for this purpose as
notified in writing by the Employer to the Guarantor.

4. Any claim or direction as specified herein being made by the Employer shall be by way of a notice in
writing addressed to the Guarantor and the same being received by the Guarantor at the address stated hereof
within 90 days from the expiry of this Guarantee.

5. This Guarantee or the copy thereof in the Employer's possession shall be retained by the Employer
even after termination of all liabilities hereunder.

Table 1:
Computation of Initial Expiry Date Formula
Building Contract Latest of {Date for Completion + DLP, for various phases} + 12 months

Performance Guarantee to be issued by Insurance Company Pg 2 of 2

PG FOR BUILDING CONTRACTS 042013
 (For Performance Guarantee to be issued by Bank)

PERFORMANCE GUARANTEE

THIS GUARANTEE is given the ....................... day of ....................................

BY.................................................................……………………..........................................................................................
………………..........................................................……………………………………....................[name of Guarantor]
of...........................................................................................................................................................................................
..............................................................................................................[address, etc] (hereinafter called "the Guarantor")

IN FAVOUR OF the HOUSING & DEVELOPMENT BOARD, SINGAPORE (Employer, including its Assigns and
Successors in law) of HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 (hereinafter called "the Employer").

WHEREAS

(1) The Employer has accepted the tender submitted by …………………………………………………….

…………...............................................................................……………… of ……...…………………………………..
.............………………………………………................................................. (hereinafter called "the Contractor") for
…………………………….……………………………………………………………………………………………………...………
…………………........................................................................................................................................................................
.................................................................. (hereinafter called the "said Works") resulting in a contract for the said Works
(hereinafter called "the Contract").

(2) The Guarantor has agreed to guarantee the due performance of the Contract in the manner hereinafter
appearing

NOW THE GUARANTOR HEREBY AGREES with the Employer as follows:-

In consideration for the Employer not insisting on the Contractor paying cash as a Security Deposit for the Contract the
Guarantor hereby undertakes as follows:

1. The Guarantor unconditionally and irrevocably undertakes and covenants to pay in full forthwith upon demand
in writing any sum or sums that may from time to time be demanded by the Employer up to a maximum aggregate sum
of Dollars ……………………………………………………………………………….…………………………………………..
……………………………………………..........……................................................................. ($...............……………..... )
without requiring any proof that the Employer is entitled to such sum or sums under the Contract or that the Contractor
has failed to execute the Contract or is otherwise in breach of the Contract. Any sum or sums so demanded shall be
paid forthwith by the Guarantor unconditionally, without any deductions whatsoever and notwithstanding the existence
of any differences or disputes between the Employer and the Contractor arising under or out of or in connection with the
Contract or the carrying out of work thereunder or as to any amount or amounts payable thereunder and
notwithstanding that such differences or disputes have been referred to arbitration or are the subject of proceedings in
Court or is in the midst of any other means of dispute resolution.

Performance Guarantee to be issued by Bank Pg 1 of 4

PG FOR BUILDING CONTRACTS 042013
2. The Guarantor shall not be discharged or released from this Guarantee by any arrangement made
between the Contractor and the Employer without the assent of the Guarantor or by any alteration in the
obligations undertaken by the Contractor or in the Works to be done thereunder or by any forbearance whether as
to payment time performance or otherwise or by any other indulgence or matter of whatever nature accorded by
the Employer to the Contractor.

3. This Guarantee shall take effect from the date hereof and remain in full force and effect until (please
refer to Table 1 for formula to compute initial expiry date) provided always that the expiry date of this
Guarantee and the Guarantor’s liability thereunder shall be automatically extended for successive periods of 6
months unless the Guarantor gives the Employer 90 days' written notice prior to the expiry of the Guarantor’s
liability of their intention not to extend this Guarantee in respect of any future extension and provided further that
the Employer shall be entitled, upon receiving such notice of the Guarantor’s intention (and within the period
specified in Clause 4 hereof), either to:
(a) make a claim under this Guarantee; or
(b) direct the Guarantor to pay forthwith such amount (not exceeding the maximum aggregate
sum) as the Employer may specify into a suspense account to be governed and disbursed by
the Guarantor subject to the Association of Banks in Singapore's Guidelines for operation of a
Suspense Account in force as at the date hereof. (A copy is annexed hereto and marked “A”);
or
(c) direct the Guarantor to extend the validity of this Guarantee for a further period not exceeding
12 months (and this Guarantee shall then expire at the end of such further period). At any time
before the end of such further period (and within the period specified in Clause 4 hereof), the
Employer shall be entitled to direct the Guarantor to pay forthwith such amount (not exceeding
the maximum aggregate sum) as the Employer may specify into a suspense account to be
governed and disbursed by the Guarantor subject to the Association of Banks in Singapore's
Guidelines for operation of a Suspense Account (Annex A).

For the purpose of this clause, service of the above 90 days’ written notice shall be due service only if it is
st
addressed to the Group Director (Development & Procurement) and the same being received by him at 21
Storey West Wing, HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 or such other address
stipulated for this purpose as notified in writing by the Employer to the Guarantor.

4. Any claim or direction as specified herein being made by the Employer shall be by way of a notice in
writing addressed to the Guarantor and the same being received by the Guarantor at the address stated hereof
within 90 days from the expiry of this Guarantee.

5. This Guarantee or the copy thereof in the Employer's possession shall be retained by the Employer
even after termination of all liabilities hereunder.

Table 1:
Computation of Initial Expiry Date Formula
Building Contract Latest of {Date for Completion + DLP, for various phases} + 12 months

Performance Guarantee to be issued by Bank Pg 2 of 4

PG FOR BUILDING CONTRACTS 042013
 ANNEX A-1

ABS GUIDELINES FOR OPERATION OF A SUSPENSE ACCOUNT

These ABS Guidelines are intended to apply to all guarantees, indemnities, bonds and/or
similar instruments issued by member banks and which refer to these Guidelines

1. When a customer (“Applicant/Contractor”) applies for the issuance of a bank guarantee,

indemnity, bond and/or similar instrument (“BG”), the bank issuing the BG (“issuing
Bank”) should advise the Applicant/Contractor if the BG includes an automatic extension
clause.

2. If the Issuing Bank does not intend to extend the validity of a BG with an automatic
extension clause, the Issuing Bank shall give the requisite notice thereof to the
Applicant/Contractor and the beneficiary under the BG (“Beneficiary”) prior to the expiry
date of the BG.

3. One of the following may occur after the Issuing Bank gives the notice mentioned in
Guideline 2:

(i) A Replacement Guarantee may be obtained

The Applicant/Contractor may arrange for a replacement instrument (acceptable to

the Beneficiary) to be issued by another bank or financial institution and the
Issuing Bank’s responsibilities under the BG will expire;

(ii) Beneficiary may make a Claim

The Beneficiary may make a claim under the BG prior to its expiry and thereupon
such claim will be processed by the Issuing Bank under the terms and conditions
as set out in the BG; or

(iii) Beneficiary may direct payment to a Suspense Account subject to these

Guidelines

When the Beneficiary directs the Issuing Bank to pay the relevant amount under
the BG to a suspense account to be governed by these Guidelines (“Suspense
Account”), the Issuing Bank shall:

(a) pay the relevant amount into the Suspense Account;

(b) make payment of amounts not exceeding the credit balance in the
Suspense Account from the Suspense Account to the Beneficiary upon
receiving the Beneficiary’s written notice seeking such payment without
inquiry into the reasons, circumstances or authenticity of the grounds for
such notice (and without prior reference to the Applicant/Contractor);

(c) upon receiving the Beneficiary’s written and unconditional confirmation

that the Beneficiary has no further claim or interest to the moneys in the
Suspense Account, hold the moneys in the Suspense Account subject to
appropriate payment directions from the Applicant/Contractor or other
person(s) entitled thereto.

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PG FOR BUILDING CONTRACTS 042013
 ANNEX A -2

4. If the payment into the Suspense Account mentioned in Guideline 3 (iii) (a) is made by
the Issuing Bank from cash funds made available by the Applicant/Contractor:

(i) the Issuing Bank shall not impose any additional cost for setting -up the Suspense
Account; and

(ii) interest on the moneys placed in the Suspense Account shall accrue at the
prevailing interest rate of the Issuing Bank for Singapore Dollar savings accounts
for the period that the moneys remain in the Suspense Account.

5. If the Issuing Bank is unfunded by the Applicant/Contractor when the payment into the
Suspense Account mentioned in Guideline 3 (iii) (a) is made, the Issuing Bank shall
retain all rights of recourse against the Applicant/Contractor and/or other person(s) in
respect thereto.

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PG FOR BUILDING CONTRACTS 042013