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The Lease Guarantee Agreement serves as a critical security instrument in Saudi Arabian real estate transactions, providing landlords with additional protection against tenant default. This document is typically required when leasing commercial properties, especially for new or unestablished tenants, or in high-value lease arrangements. The agreement must be structured in accordance with Saudi law and Sharia principles, which place specific requirements on the nature of guarantees and the obligations of the parties involved. The document details the scope of the guarantee, payment mechanisms, enforcement procedures, and the specific circumstances under which the guarantee can be called upon. Key features include provisions for both conventional and Islamic financing structures, compliance with Saudi Arabian real estate regulations, and consideration of local commercial practices.

1. Parties: Identification of all parties: Guarantor, Landlord (beneficiary), and Tenant (primary obligor)

2. Background: Context of the guarantee, reference to the main lease agreement, and purpose of the guarantee

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Lease Agreement', 'Property', and 'Guarantee Period'

4. Guarantee and Indemnity: Core provisions detailing the guarantee obligations, including scope and limitations

5. Duration of Guarantee: Term of the guarantee, including start date and expiry conditions

6. Guarantor's Undertakings: Specific promises and obligations of the guarantor, including payment terms and performance requirements

7. Preservation of Rights: Landlord's rights preservation clauses and circumstances not affecting the guarantee's validity

8. Representations and Warranties: Guarantor's confirmations regarding capacity, authority, and financial status

9. Payment Mechanics: Process and timing for payments under the guarantee, including currency and payment method

10. Sharia Compliance: Specific provisions ensuring compliance with Islamic law principles

11. Enforcement: Mechanisms and procedures for enforcing the guarantee

12. Termination: Circumstances under which the guarantee may be terminated or released

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes