Translation of Services Contract

The parties agree to the following:

Preamble:

WHEREAS, the Bank desires to assign for the maintenance services of VRV (Variable Refrigerant Volume) system air conditioners, which are installed in many of the branches, buildings and the regional departments of the Bank, and which are stated in the appendix (3) herein, a specialized company in that field, in accordance with the terms and specifications set forth herein and according to the letter of award number __ dated __ issued by the Bank and hereinafter referred to for the purpose of this contract in the appendix number (1);

Whereas, the contractor is a company specialized in that field and has acknowledged that he owns the required regular licenses and that he possesses the technical capability, experience and qualifications required for the implementation of the work subject of this contract at the highest levels and in accordance with the terms and the accepted technical specifications. And, he expressed his willingness and acceptance to provide the above-mentioned works subject of this contract and he has submitted to the Bank the price proposal number _______ dated ____, which contains the classification of the type of service and monthly unit price hereinafter referred to for the purpose of this contract in the appendix number (2) for the implementation of the above-mentioned works subject of this contract.

Whereas, the Bank has accepted that offer and agreed to contract with the contractor, and both parties being of legal contractual capacity, have mutually agreed to enter into this contract as follows:

Article (1): Contract documents and appendices

 1.1 – letter of award number ____ dated _____ issued by the Bank - appendix number (1).

1.2 - Price proposal number _____ dated _____ submitted by the contractor - appendix number (2).

1.3 - List of branches and locations of the Bank covered by the contract, which are equipped with VRV (Variable refrigerant volume) air conditioning systems - appendix number (3).

1.4 - Original bank guarantee letter issued by the contractor value 5% of the value of the contract - appendix number (4).

1.5 – List of the branches and maintenance centers of the contractor - appendix number (5).

Article (6): Cancellation and addition

The Bank has the right, after the contractor counts the air conditioners, exclude some or to add brand new or used ones according to the need of work.

Article (7): Term of the Contract

7.1 – the term of this contract shall be for a period of (2) Gregorian years, commencing on _______, and ending on ______, renewable for an additional period or similar periods upon written consent of both parties.

 7.2 – the two parties agree that the first three months of the term of the contract, consider a trial period in order to determine the efficiency of the contractor and his ability to carry out his contractual obligations, and only the Bank shall have the right during that period to terminate this contract upon a written notice directed to the contractor without the need to give the reasons, provided that the contractor rights shall be settled for the contract period existing before the termination according to the Contract prices and clauses.

7.3 - At the end of the term of this contract or upon its termination, the contractor is obliged to hand over to the Bank or his representative, under official record all the air conditioners subject of the contract in good working condition, efficiently and according to the conditions existed at the time of contracting, taking into consideration ordinary wear and tear. Within a period of 30 days from the date of ending the contract.

7.4 – In the case of dispensing the use of all or some of the air conditioners subject of the contract by the Bank. The Bank holds the right to terminate the contract or reduce the agreed payment against the maintenance of the air conditioners that have been dispensed.

Article (10): Performance guarantee bond

10.1 – the contractor upon signing this contract shall be obliged to provide a final, irrevocable and unconditional bank guarantee letter in the name of the Bank, As a guarantee for his proper performance of his obligations under this contract, value (66,556,8) Saudi Riyal – only Sixty-six thousand five hundred and fifty-six and eight halala. Shall be issued by one of the local banks operating in the Kingdom of Saudi Arabia and licensed by the Saudi Arabian Monetary Agency and in a form certified and approved by the Bank. And the bank guarantee letter shall be valid for the duration of this contract and the contractor shall renew it 60 days before the expiry date of this contract. Provided that its validity starts from the date of signing this contract and continue until the expiry date of the contract period.

10.2 – the value of the bank guarantee letter referred to in the clause no. (10.1) above- mentioned can be adjusted according to the actual value of the contract at the time of adjustment. Submitting the bank guarantee letter is a prerequisite in order to pay the dues of the contractor. If the contractor failed to submit the bank guarantee letter or renew it or adjusting its value, the Bank shall have the right to deduct (5%) of the value of the contractor's monthly dues according to the above-mentioned.

10.3 - the Bank has the right to liquidate the bank guarantee letter fully or partially in order to receive his rights in the case of the contractor breach or failure to fulfill any of his obligations as set in the contract, that occurs after 30 days from the date of the second written notice that the Bank has addressed to the contractor at his address that is described in this contract, to tackle the aspects of breach or failure.

10.4 - the bank guarantee letter is non-refundable unless at the expiry date of this contract, and in the case of the non-existence of any defects or violations or any observations or dues to the Bank that have been caused by the contractor. As the Bank then shall have the right to liquidate the bank guarantee letter fully or partially in order to receive his rights while referring to the contractor for the differences (if any).

Translation By Heba Musa