The Guaranty Fee Agreement is a crucial document used when one party (the guarantor) agrees to provide a guarantee in favor of a beneficiary in exchange for a fee. This agreement, governed by Hong Kong law, specifically addresses the commercial arrangement between these parties regarding the payment of fees for the guarantee service. It is commonly used in financial transactions, corporate lending, and commercial arrangements where credit support is required. The document typically includes detailed provisions on fee calculation methods, payment schedules, adjustment mechanisms, and the parties' respective rights and obligations. It ensures compliance with Hong Kong regulatory requirements while providing a clear framework for the fee arrangement associated with the guarantee relationship.

1. Parties: Identifies and defines all parties to the agreement, including the guarantor, beneficiary, and principal debtor

2. Background: Sets out the context of the agreement, including reference to the underlying guarantee and the basis for the fee arrangement

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Fee Structure: Details the guaranty fee amount, calculation method, and any adjustments

5. Payment Terms: Specifies payment frequency, due dates, payment methods, and late payment consequences

6. Guarantor's Representations and Warranties: Sets out the guarantor's confirmations regarding capacity and authority

7. Beneficiary's Representations and Warranties: Contains beneficiary's confirmations regarding authority and the underlying guarantee

8. Covenants: Ongoing obligations of the parties during the agreement term

9. Term and Termination: Duration of the agreement and circumstances allowing early termination

10. Confidentiality: Obligations regarding confidential information

11. Notices: Process and requirements for formal communications between parties

12. General Provisions: Standard boilerplate clauses including entire agreement, amendments, severability, etc.

13. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and jurisdiction for disputes