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The Guarantee Fee Agreement is a crucial document used in Nigerian business and financial transactions where one party provides a guarantee in favor of another party in exchange for a fee. This agreement type is commonly utilized in project finance, corporate lending, and international trade transactions where guarantees are required as security or credit support. The document specifically addresses the commercial arrangement between the guarantor and the fee payer, detailing the guarantee fee calculation methodology, payment terms, and related obligations. Under Nigerian law, particular attention must be paid to compliance with banking regulations, stamp duty requirements, and Central Bank of Nigeria guidelines. The agreement becomes especially important in complex financial transactions where multiple parties are involved and clear documentation of fee arrangements is essential for regulatory compliance and risk management.

1. Parties: Identification of the guarantor, the party paying the guarantee fee, and any other relevant parties

2. Background: Context of the guarantee arrangement and the reason for the fee agreement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Guarantee Fee: Detailed description of the fee structure, calculation method, and amount

5. Payment Terms: Terms and conditions for payment, including timing, method, and currency of payment

6. Duration: Term of the agreement and conditions for renewal or extension

7. Obligations of the Parties: Specific duties and responsibilities of each party under the agreement

8. Representations and Warranties: Standard representations and warranties from both parties

9. Events of Default: Circumstances constituting default and consequences thereof

10. Termination: Conditions and process for terminating the agreement

11. Confidentiality: Provisions regarding the confidentiality of the agreement and related information

12. Notices: Process and requirements for giving notices under the agreement

13. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

14. Boilerplate Clauses: Standard contractual provisions including severability, entire agreement, and amendments