PERFORMANCE BOND/BANK GUARANTEE 
        1.   In  consideration for the President of  India,  acting  
        through  the  Director  General  of  Supplies  &  Disposals  
        (hereinafter  called  the  Government)  having  agreedd  to  
        release  the 100% payment of nett.  f.o.b.  price under the  
        terms    and   conditions   of   a    concluded    Contract  
        No._________________________________for supply of__________ 
        ____________________to________________________(Please state  
        the   name  of  the  contractor)  (give  full   particulars  
        including   status   and   address   of   the   contractor)  
        (hereinafter referred as the 'contractor') on submission of  
        a  Bank Guarantee to the satisfaction of the Government for  
        the due performance of the said contract. 
        2.   We_________________(hereinafter  referred  to  as  the  
        Bank) at the request of  ________ ______________(contractor) 
        do,  as  primary obliger and not merely as  surety,  hereby  
        irrevocably,   unconditionally   and  absolutely  undertake  
        against  any loss or damage caused to or suffered or  would  
        be caused to or suffered by the Government by reason of any  
        failure  of  the  Contractor  to  perform  or  omission  or  
        negligence  to perform any part of his/their obligation  to  
        the satisfaction of the purchaser in terms of the contract. 
        3.   We_____________________________do hereby undertake  to  
        pay the amount due and payable under this guarantee without  
        any  demur  merely on a demand from the Government  stating  
        that  the  amount claimed is due by way of loss  or  damage  
        caused  to  or  would  be  caused to  or  suffered  by  the  
        Government   by   reason  of  any  breach   by   the   said  
        contractor(s)  of any of the terms and conditions contained  
        in  the  said contract or by reason  of  the  contractor(s)  
        failure   or  omission  or negligence to perform  the  said  
        contract or any part thereof.   Any such demand made on the  
        bank  shall  be conclusive as regards the  amount  due  and  
        payable  by the bank under this guranteee,  which shall not  
        be  considered as satisfied by any intermediate payment  or  
        satisfaction  of  any  part  of  or  obligation  hereunder.  
        However,  our  liability  under  this  guarantee  shall  be  
        restricted to an amount not exceeding Rs.__________________ 
        4.   We  undertake to pay to the Government any  amount  so  
        demanded by the Government, notwithstanding. 
        (a)   any  dispute or difference between the Government  or  
              the   Contractor  or  any  person  or  any  suit   or  
              proceeding  pending  before any court or tribunal  or  
              arbitrator relating thereto;  or 
        (b)   the invalidity,  irregularity or unenforceability  of  
              the contract; or 
        (c)       any  other  circumstances which  might  otherwise  
              constitute discharge of this Guarantee, including any  
              act  or  omission or commission on the  part  of  the  
              Government   to   enforce  the  obligations  by   the  
              Contractor(s)or  any  other  person  for  any  reason  
              whatsoever. 
        5.  We________________________________(indicate the name of  
        the bank) further agree that the guarantee herein contained  
        shall be continued one and remain in full force and  effect  
        during  the period that would be taken for the  performance  
        of  the  said  Agreement and that it shall continue  to  be  
        enforceable till all the dues of the Government under or by  
        virtue of the said agreeement have been fully paid and  its  
        claims satisfied or discharged or till_______________office 
        /Department,   Ministry  of  _____________________certifies  
        that  the terms and conditions of the said  Agreement  have  
        been   fully   and  properly  carried  out  by   the   said  
        contractor(s) and accordingly discharges this guarantee. 
        6.    We, _____________________________hereby    agree    and
        undertake  that any claim which the Bank may have against the
        Contractor shall be subject  and  subordinate  to  the  prior
        payment and performance in full of all the obligations of the
        Bank  hereunder  and  the Bank will not without prior written
        consent of  the  Government  exercise  any  legal  rights  or
        remedies  of  any  kind  in  respect  of  any such payment or
        performance so long as the obligations of the Bank  hereunder
        remain  owing  and outstanding, regardless of the insolvency,
        liquidation or bankruptcy  of  the  Contractor  or  otherwise
        howsoever.We  will  not  counter claim or set off against its
        liabilities to the Government hereunder any  sum  outstanding
        to the credit of the Government with it. 
        7.   We_________________________(indicate the name of bank)  
        further agree with the Government that the Government shall  
        have  the fullest liberty without our consent  and  without  
        affecting  in any manner our obligations hereunder to  vary  
        any of the terms and conditions of the said Agreement or to  
        extend  time of performance by the said contravctor(s) from  
        time  to time or to postpone for any time or from  time  to  
        time  and  of  the powers exerciseable  by  the  Government  
        against  the said contractor(s) and forbear or enforce  any  
        of  the terms and conditions relating to the said agreement  
        and  we shall not be relieved from our liability by  reason  
        of  any such variation,  or extension being granted to  the  
        said contract(s) or for any forbearance, act or omission on  
        the  part  of   the Government or  any  indulgence  by  the  
        Government  to the said contractor(s) or by any such matter 
        or  thing  whatsoever  which  under  the  law  relating  to  
        sureties would,  but for this provision,  have effect of so  
        relieving us. 
        8.  This guarantee will not be discharged due to the change  
        in the constitution of the Bank of the Contractor(s). 
        9.   We___________________________  (indicate the  name  of  
        bank)  lastly undertake not to revoke this gurantee  during  
        its  currency  except  with  the previous  consent  of  the  
        Government in writing. 
            The  disputes relating to this Bank Guarantee shall  be  
        resolved as per terms and conditions of the contract. 
        Dated the _____________________________day of 19____. 
        For   ______________________________________(indicate   the  
        name of Bank). 
                            PERFORMANCE STATEMENT 
         
                 Consolidated  Performance  Statement  for   the   period
        ending               of__________________in               respect
        of_____________________DGS&D Rate Contract No.___________________ 
        and       dated________________Name       of       the        R/C
        holder__________________Validity from_______________to___________ 
        Store______________ 
        _________________________________________________________________ 
        Total value      Value of     Value     Value of    Reasons for  
        of the           orders       of        orders      delay in the 
        orders           which were   orders    for which   execution of 
        received         due for      supplied  supply is   the   Supply 
        upto the         Supply by    as per    due by      Order(s), if 
        end of the       the cut      Col.2     the cut     any. 
        month previous   off date               off date 
        to the one in    mentioned              mentioned 
        which the        in col.1               in Col.1 
        tender           (In                    (In 
        is due (In      Ruppes)                Rupees) 
        Rupees) 
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                                Designation & Signature of the submitting 
                              Officer with date & Seal (name of the firm)