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Corporate Guarantee by a Parent Company

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  1. The guarantor company
  2. The lessor, the lessee and the lease
  3. What is guaranteed
  4. Signing

Step 1 of 4

The guarantor company

For example: Chandigarh

A calendar date — the day, the month and the year. Dates in a document like this are read against one another, so a date typed here can change what another date is allowed to be.

For example: 2026-10-12

For example: Meridian Retail Holdings Limited

For example: U51909CH2015PLC036123

Guarantor's registered officeNeeded

For example: holding company

A calendar date — the day, the month and the year. Dates in a document like this are read against one another, so a date typed here can change what another date is allowed to be.

For example: 2026-10-05

For example: Amandeep Singh

For example: Director

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CORPORATE GUARANTEE

This Guarantee is made at __________ on __________.

BY

__________, a company incorporated under the Companies Act, 2013 (CIN __________), having its registered office at __________, acting through __________, __________ (the "Guarantor");

IN FAVOUR OF

RECITALS

B. The Guarantor is the __________ of the Lessee and benefits from the Lessee's use of the Premises. The Lessor was willing to let the Premises to the Lessee only if the Guarantor gave this Guarantee.

C. The board of directors of the Guarantor approved the giving of this Guarantee by a resolution passed on __________.

THE GUARANTOR THEREFORE GIVES THIS GUARANTEE TO THE LESSOR AS FOLLOWS.

  1. 1. THE GUARANTEE

1.2 The Guarantor's liability is the same as the Lessee's and is that of a principal debtor, not merely of a surety. It does not depend on the Lessor first claiming from the Lessee, suing the Lessee, or applying any deposit or other security it holds, although the Lessor may do any of these.

  1. 2. DEMAND AND PAYMENT

2.2 The Guarantor shall pay without deduction, set-off or counterclaim, and shall not delay payment because the Lessee disputes the demand. Any dispute between the Guarantor and the Lessee is for them to settle between themselves.

  1. 3. A CONTINUING GUARANTEE

3.1 This is a continuing guarantee. It is not discharged or reduced by any change to the Lease, any extra time or indulgence the Lessor gives the Lessee, any release of other security, or any change in the constitution, insolvency, winding up or reorganisation of the Lessee. The Guarantor agrees to these in advance and waives any rule of law that would discharge a guarantor because the Lease was changed without its consent.

3.3 If the Lessee's obligation cannot be enforced against it for any reason, such as want of power, the Guarantor remains liable as if the obligation had been the Guarantor's own, and shall indemnify the Lessor against the loss.

  1. 4. THE GUARANTOR'S CONFIRMATIONS

4.1 The Guarantor confirms that it is validly incorporated and existing; that it has the power under its constitution and under the Companies Act, 2013 to give this Guarantee; that its board has approved it as recited above and any approval of its members or others that is required has been obtained; and that giving this Guarantee does not break its articles of association, any law, or any agreement binding on it.

4.2 Within thirty days of the Lessor asking, the Guarantor shall give the Lessor a certified copy of the board resolution and, once a year while this Guarantee is in force, a copy of its latest audited financial statements.

4.3 The Guarantor shall tell the Lessor in writing within fifteen days if it stops holding the position described in recital B, or if control of the Guarantor or of the Lessee changes. The Guarantor shall then, if the Lessor asks, offer a replacement guarantee or security that the Lessor finds reasonable.

  1. 5. THE GUARANTOR'S RIGHTS AGAINST THE LESSEE

5.1 Until the Lessor has been paid everything due to it under the Lease and this Guarantee, the Guarantor shall not claim from the Lessee, or share in any recovery from the Lessee or any security the Lessor holds, in competition with the Lessor. Anything the Guarantor receives in breach of this clause it holds for the Lessor.

  1. 6. TRANSFER OF THE PREMISES

6.1 If the Lessor transfers the Premises, the benefit of this Guarantee passes to the new owner, who may enforce it as the Lessor, from the date the Guarantor receives written notice of the transfer. The Guarantor shall acknowledge the notice on request.

6.2 The Guarantor may not assign or transfer its obligations under this Guarantee without the Lessor's written consent.

  1. 7. NOTICES, LAW AND GENERAL

7.1 A demand or notice to the Guarantor is validly given if delivered by hand or sent by registered post to its registered office stated above, or to any later registered office it has told the Lessor of in writing.

7.3 This Guarantee may be changed only in writing signed by the Guarantor and the Lessor. A delay or failure by the Lessor in enforcing it is not a waiver. If any part of it is held unenforceable, the rest remains in force.

IN WITNESS WHEREOF the Guarantor has signed this Guarantee at __________ on __________.

FOR __________
Through: __________, __________, authorised by the board resolution of __________
Signature: ______________________________
Company seal, if the articles require one: ______________________________

WITNESSES

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