Format of Performance Bond Bank Guarantee

Ref. No.: MMHE/ITB/SCM/04-REV0

CONTRACT

EXHIBIT 2 – Appendix 1

Page 1 of 2

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FORMAT OF PERFORMANCE BOND BANK GUARANTEE

To :

Malaysia Marine And Heavy Engineering Sdn Bhd (hereinafter referred to as “MMHE”), a company incorporated under the laws of Malaysia and having its registered office at Level 31 MenaraDayabumi, Jalan Sultan Hishamuddin, 50050 Kuala Lumpur, Malaysia.

WHEREAS:

a)This Guarantee is supplemental to Contract No. …………………. for ………… dated …….. (hereinafter called the “Contract”) made between ……… (hereinafter referred to as “the Contractor”) of the one part and MMHE of the other part;

b)One of the expressed conditions of the Contract is the receipt by MMHE of this Guarantee duly executed by ……………………… (hereinafter referred to as “ the Guarantor” ) whose registered address is at …………………………..;

c)The Guarantor agrees to guarantee the due performance of the Contract by the Contractor in the manner hereinafter appearing.

NOW THEREFORE the Guarantor hereby irrevocably and unconditionally guarantees and undertakes to MMHE as follows:

(1)If the Contractor shall in any respect fail to execute the Contract or shall commit any breach of his obligations in accordance with the requirement of the Contract, the Guarantor shall indemnify MMHE against all losses, damages, costs and expenses which may be incurred by MMHE by reason of any default on the part of the Contractor in performing and observing the Contract and provisions on his part contained in the Contract PROVIDED ALWAYS that the liability of the Guarantor to indemnify MMHE as aforesaid shall not exceed the sum of ………… (hereinafter referred to as “the Guaranteed Sum” ).

(2)The Guarantor further covenants and agrees that the Guarantor shall pay to MMHE upon receipt of its first written demand without proof or condition, such sums as MMHE may certify being indemnification against any loss, damage, cost or expenses incurred by MMHE by reason of any default or breach on the part of Contractor of its obligations under the Contract, within fourteen (14) days after receipt of the said demand notwithstanding any contestation or protest by the Contractor or other third party.

(3)This Guarantee is a continuing security and accordingly shall remain in force and effectivefrom ……. until …….. All claims if any, in respect of this Guarantee must be received by the Guarantor in writing on or before ...... (hereinafter referred to as the “Expiry Date”) i.e. within 3 months after the expiry of the Guarantee, failing which all the Guarantor’s liabilities and obligations hereunder shall be absolved and this Guarantee shall be automatically be terminated and shall be null and void and of no further effect whatsoever irrespective of whether or not this Guarantee is returned to the Guarantor for cancellation.

(4)The Guarantor shall not be discharged or released from this Guarantee by any arrangement between the Contractor and MMHE with or without the consent of Guarantor or by any alteration in the obligations undertaken by the Contractor or by any forbearance whether as to payment, time, performance or otherwise, or by any change in name of constitution of MMHE or the Contractor.

(5)The Guarantor agrees that the Guarantee is given regardless of whether or not the sum outstanding occasioned by the loss, damages, costs, expenses or otherwise incurred by MMHE is recoverable by legal action or arbitration.

(6)This Guarantee cannot be assigned or transferred or dealt with without the prior written consent of the Guarantor.

(7)This Guarantee shall be governed by and construed in accordance with the laws of Malaysia and all parties agree to submit to the exclusive jurisdiction of the courts of Malaysia.

IN WITNESS whereof this Guarantee has been duly executed by the Guarantor the …………. day of …………, 2013…. for and on behalf of ………………….

Signed by:

……………………………………………..

Name :

Title:

Date:

Witnessed by :

………………………………………………

Name:

Title:

Date: