C-5_BLG_Krasts_13-R-0018.docx

SAMPLE

BANK LETTER OF GUARANTEE

(BANK LETTERHEAD)

US Army Corps of Engineers Europe District Konrad Adenauer Ring 39, Box 7 ATTN: Contracting Officer 65187 Wiesbaden, Germany

LETTER OF GUARANTEE NUMBER:_______________ DATE:_________

I/We, the undersigned, acting as the duly authorized representative of the Bank, declare that the Bank hereby guarantees and is jointly and severally liable as the guarantor with the Contractor named below, to effect payment to the Contracting Office by check made payable to the Treasury of the United States, within SEVEN calendar days after the date of the contract, the Contractor shall furnish the Contracting Officer a Bank Letter of Guaranty for the performance of the work in the amount of Ten percent (10%) of the anticipated maximum contract value, or lesser amount, at the discretion of the Contracting Officer; conforming to the format of the sample letter. Failure to furnish the Bank Letter of Guaranty may be deemed a breach of contract. The Bank Letter of Guaranty will be dated as of the contract date or as soon thereafter as possible. The Bank Letter of Guaranty shall state that it will continue in effect without change in amount or terms until the work has been finally inspected and accepted by the Government, and that thereafter it will continue in effect until expiration of any applicable warranty periods or extensions thereof in an amount equal to five percent (5%) of the contract price. The Bank Letter of Guaranty shall also state that the bank agrees and consents that the contract may be modified by change order or supplemental agreement without affecting the validity of the Bank Letter of Guaranty. The Contracting Officer may require and the Contractor shall furnish the Contracting Officer an increase in the amount of the Bank Letter of Guaranty because of increases to the contract value. The authorization to issue "Notice to Proceed" will not be effected until after approval and acceptance by the Contracting Officer of the Bank Letter of Guaranty. The Bank Letter of Guaranty shall be interpreted in accordance with U.S. law and is subject to the Choice of Law and Immunity for Legal Process clauses in the solicitation.

NAME & ADDRESS OF THE BANK

Signed By:___________________________

TYPE NAME UNDERNEATH SIGNATURE)

Title:___________________________

Endorsement By:___________________________

(TYPE NAME UNDERNEATH SIGNATURE)

Title:___________________________

NOTE: Certificate of Authority is attached evidencing authority of the signers to bind the bank in this document.