Know All Men By These Presents:
That we, [COMPANY], a corporation duly organized and existing under and by virtue of the laws of the Republic of the Philippines, with office address at [address] and represented by [name of representative], as PRINCIPAL, and [PERFORMANCE SECURITY ISSUER], a corporation duly organized and existing under and by virtue of the laws of [country], with office address at [address] and represented by [name of representative], as SURETY, are held and firmly bound unto AGENCY in the sum of [•] Pesos (PHP [•]) for the payment of which sum well and truly to be made, we bind ourselves, our successors and assigns, jointly and severally, firmly by these presents.
The conditions of this Surety Bond are as follows:
WHEREAS, PRINCIPAL, on [date], executed a Bulk Water Supply Agreement ("Agreement") with AGENCY to develop, finance, design, construct, test, commission, own, operate, manage and maintain facilities required to abstract up to [volume] cubic meters per day of raw water from the [insert raw water source and location], Philippines, to treat such raw water into potable water, and to deliver such bulk treated water through a transmission pipeline into the Agency's pipeline network for transmission and distribution of water;
WHEREAS, except as otherwise defined in this Surety Bond, capitalized terms used herein shall have the meanings assigned to them in the Agreement.
WHEREAS, Section 6.3 of the Agreement requires PRINCIPAL to post and deliver a surety bond callable on demand in favor of AGENCY for the faithful performance by PRINCIPAL of its obligations under the Agreement from the Provisional Operations Start Date until the Termination Date of the Agreement;
NOW THEREFORE, if PRINCIPAL shall faithfully perform all the undertakings, covenants, terms, conditions and agreements under the Agreement from Provisional Operations Start Date until the Termination Date of the Agreement, then this Surety Bond shall be null and void; otherwise, it shall remain in full force and effect.
This bond is a penal bond callable on demand by AGENCY upon the failure of PRINCIPAL faithfully to perform its obligations under the Agreement from the Provisional Operations Start Date until the Termination Date.
AGENCY is hereby irrevocably authorized to make one or more claims for payment against this Surety Bond by presenting to SURETY, at its address set forth above, a written notice, in substantially the form attached as Annex A hereof, that PRINCIPAL has failed to faithfully to perform any of its obligations under the Agreement from the Provisional Operations Start Date until the Termination Date. The aggregate amount of all claims for payment made by AGENCY shall not exceed [•] Pesos (PHP [•]).
Upon receipt of a written notice, SURETY shall pay the amount specified in the notice at the opening of business on the first or second Business Day succeeding the date of such claim for payment notwithstanding any objection which PRINCIPAL might raise against AGENCY's entitlement to payment.
The liability of SURETY under this Surety Bond shall expire on termination of the Agreement and SURETY does not assume responsibility for any liability incurred or created thereafter. This Surety Bond will be cancelled ten (10) days after the expiration unless SURETY is notified in writing of any existing obligation hereunder.
This Surety Bond shall be governed by and construed in accordance with the laws of the Republic of the Philippines.