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The document should be signed by the authorised signatory (or directors of a company) and witnessed to complete the formality.
The document titled 'Parental Guarantee to other parties in relation to Shareholders Agreement' is a guarantee entered into for the benefit of the parties to the shareholders' agreement. The document starts by providing a brief introduction and states that it is a guarantee made by the guarantor for the proper and punctual performance of the party's obligations under the agreement. The guarantor undertakes to hold the other shareholders fully indemnified against any loss, damages, costs, and expenses arising from the party's failure to perform its obligations.
The document consists of several sections, each serving a specific purpose. In section 1, the document refers to the shareholders' agreement and defines the terms used in the guarantee. Section 2 outlines the guarantor's obligations, which include guaranteeing the performance of the party's obligations and indemnifying the other shareholders for any losses.
Section 3 specifies that no payment shall be made by the guarantor unless a demand has been made by the relevant shareholder and the debt or claim is confirmed to be due and payable. Section 4 states that if any provision of the guarantee becomes invalid, illegal, or unenforceable, it will not affect the validity of the remaining provisions.
Section 5 sets a limit on the guarantor's liability, stating that it shall not exceed a certain amount. Section 6 provides instructions for giving notices under the guarantee, including the methods of delivery and the addresses of the parties. Section 7 reiterates that if any provision of the guarantee becomes invalid, it will not affect the remaining provisions.
Finally, section 8 clarifies that only the parties to the guarantee have the right to enforce its terms. The jurisdiction clause states that the guarantor waives any objections to the jurisdiction of the courts and agrees that a judgment or order of any court in connection with the guarantee is binding and enforceable in any jurisdiction. The document concludes by stating that it has been duly executed and delivered as a deed on the specified date.
In summary, the 'Parental Guarantee to other parties in relation to Shareholders Agreement' is a comprehensive document that outlines the guarantor's obligations and provides protection to the other shareholders in case of non-performance by the party.
To use the 'Parental Guarantee to other parties in relation to Shareholders Agreement' document, follow these steps:
1. Familiarize yourself with the document: Read the entire document carefully to understand its purpose and the obligations of the guarantor.
2. Identify the parties: Enter the names and addresses of the guarantor and the party in the specified fields. Ensure that the information is accurate and up to date.
3. Understand the shareholders' agreement: Obtain a copy of the shareholders' agreement referred to in the guarantee and review its contents. This will help you understand the context and the obligations being guaranteed.
4. Specify the obligations: Clearly describe the obligations, commitments, and undertakings of the party under the shareholders' agreement. Be specific and ensure that all relevant obligations are included.
5. Determine the indemnification: Assess the potential risks and losses that may arise from the party's failure to perform its obligations. Specify the extent of indemnification provided by the guarantor to the other shareholders.
6. Demand for payment: Before making any payment under the guarantee, ensure that a demand has been made by the relevant shareholder. Request a statement from the company confirming the validity and amount of the debt or claim.
7. Comply with notice requirements: Follow the specified methods of giving notices under the guarantee. Use email, hand delivery, or registered post to serve notices to the relevant parties.
8. Keep records: Maintain a record of all communications, demands, and payments made under the guarantee. This will help in case of any disputes or claims.
By following these steps, you can effectively use the 'Parental Guarantee to other parties in relation to Shareholders Agreement' document and ensure compliance with its terms and obligations.