Document:

exv10wxqy

 

Exhibit 10(q)

EMPLOYMENT AGREEMENT

          This EMPLOYMENT AGREEMENT (the “Agreement”) is made as of the 1st day of May, 2006 by and
between BARRIER SYSTEMS, INC., a California corporation, with its principal place of business
located at 180 River Road, Rio Vista, California 94571 (the “Company”) and Owen Denman, an
individual, residing at 9528 Crystal Bay Ln, Elk Grove, CA (the “Executive”), and, contingent upon
the closing of the transactions contemplated by the Merger Agreement (as defined below) and as of
the Closing Date (as defined in the Merger Agreement), shall supersede all prior employment,
consulting and compensation agreements or arrangements, if any, between the Executive and the
Company or any of its affiliates (including, without limitation, that certain Memorandum, dated
February 17, 2004, from Chris Sanders to John Duckett and Executive regarding incentive
compensation).

WITNESSETH:

WHEREAS, Lindsay Manufacturing Co., a Delaware corporation (“Lindsay”), is in the process of
acquiring the stock of the Company pursuant to an Agreement and Plan of Merger, of even date
herewith (the “Merger Agreement”), by and among the Company, Lindsay, Merger Sub (as defined in the
Merger Agreement) and the Shareholder Representative (as defined in the Merger Agreement);

WHEREAS, the Executive has been employed by the Company, and the Company and Lindsay wish for
Executive to serve as the President of the Company for the period provided in this Agreement; and
WHEREAS, in order to induce Lindsay to enter into the Merger Agreement and in recognition of the
consideration to be received by the Executive in connection with the transactions contemplated
thereby, the Executive is willing to serve in such capacity in the employ of the Company for such
period upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and agreements
hereinafter set forth, the Company and the Executive agree as follows:

ARTICLE I

EMPLOYMENT AND DUTIES

     SECTION 1.1.

Position and Responsibilities. The Company hereby employs the Executive to render
full-time exclusive services (as defined in Section Error! Reference source not found. hereof) to
the Company during the Term (as hereinafter defined) as the President of the Company, subject to
the direction of the President of Lindsay (the “President”), or such other person as the President
or the Board of Directors of Lindsay (the “Board”) may designate from time to time (the President
or such other person so designated, the “Supervisor”). In such capacity and subject to such
direction, the Executive shall (i) devote his full professional time and attention, best efforts,
energy and skills to the services required of him as an employee of the Company, except for paid
time off taken in accordance with the Company’s policies and practices, and subject to the
Company’s policies pertaining to reasonable periods of absence due to sickness, personal injury or
other disability; (ii) use his best efforts to promote the interests of the Company; (iii) comply
with all applicable governmental laws, rules and regulations and with all of the Company’s or
Lindsay’s policies, rules and/or regulations applicable to the employees of the Company, including,
without limitation, the Code of Conduct of Lindsay attached as Exhibit A hereto; and (iv)
discharge his responsibilities in a diligent and faithful manner, consistent with sound business
practices and in accordance with the Supervisor’s directives.

     SECTION 1.2.

Acceptance. The Executive hereby accepts such employment and agrees to render the services
described above in the manner described above.

     SECTION 1.3.

Exclusive Service. It is understood and agreed that the Executive may not engage in other
business activities during the Term, whether or not for profit or other pecuniary advantage;
provided, however, that the Executive may make financial investments which do not involve his
active participation and may engage in other activities such as

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participation in charitable,
educational, religious, civic and similar type organizations and similar types of activities and,
with the consent of the President, may serve as an outside director on the board of directors of
other corporations which are not affiliates or competitors of the Company or Lindsay or any of
their affiliates, all to the extent that such activities do not hinder or interfere with the
performance of his duties under this Agreement or conflict with the policies of the Company and
Lindsay concerning conflicts of interest or with the businesses of Lindsay, the Company or any of
their affiliates in any material way.

ARTICLE II

TERM

     SECTION 2.1.

Term. Contingent upon the closing of the transactions contemplated by the Merger
Agreement, and beginning on the Closing Date (as defined in the Merger Agreement), the Executive
will be employed by the Company for a period of three years, unless his employment is terminated at
an earlier date in accordance with ARTICLE IV (the “Term”). Those obligations which by their terms
survive the termination of this Agreement shall not be extinguished by the expiration of the Term
or the termination of this Agreement.

ARTICLE III

COMPENSATION

     SECTION 3.1.

Basic Salary. The Company shall pay the Executive salary for the services to be rendered
by him during the Term at the rate of $210,000 per annum, subject to increase on an annual basis in
the discretion of the President or the Board (the “Salary”). The Salary shall be payable in
periodic installments in accordance with the Company’s regular payroll practices as in effect from
time to time.

     SECTION 3.2.

Bonus; Equity Incentives. In addition to the Salary:

          (a) The Executive shall be eligible to receive an annual bonus (the “Bonus”), in the
discretion of the Board, based on the performance of the Company relative to financial objectives,
and the performance of the Executive relative to personal objectives, in each case as such
objectives are set forth in the Company’s annual management incentive plan; provided that, for
purposes of the Executive’s bonus for the fiscal year of the Company ending August 31, 2006, such
objectives are set forth on Exhibit B hereto. The Executive’s target bonus shall be 35% of
the Salary, subject to change in the discretion of the Board.

          (b) The Executive shall be eligible to receive annual stock options to purchase Lindsay stock
and/or restricted stock units, in either case in the discretion of the Board or the committee of
the Board administering the relevant plan.

     SECTION 3.3.

Pro-ration and Payment of Taxes. All required employment taxes, withholding and deductions
shall be deducted from the Salary and the Bonus. If the Executive does not work any full year or
this Agreement has been terminated before the end of any year, the Salary shall be pro-rated for
the period actually worked.

     SECTION 3.4.

Benefits. The Executive shall be eligible to participate in and receive the benefits under
any deferred compensation plan, health, life, accident and disability insurance plans or programs
and any other employee benefit or fringe
benefit plans or arrangements that the Company makes available generally to other senior executives
of the Company, pursuant to the provisions of such plans or arrangements as in effect from time to
time.

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     SECTION 3.5.

Vacations. The Executive will be entitled to vacation and sick days in accordance with the
policies of the Company for its employees generally, as in effect from time to time. Vacation must
be taken by the Executive at such time or times as reasonable approved by the President.

     SECTION 3.6.

Expenses. The Company shall pay or reimburse the Executive for all reasonable, ordinary
and necessary business expenses incurred or paid by the Executive during the Term in the
performance of the Executive’s services under this Agreement in accordance with the applicable
policies and procedures of the Company as in effect from time to time, upon the presentation of
proper expense statements or such other supporting documentation as the Company may reasonably
require.

ARTICLE IV

TERMINATION OF EMPLOYMENT

     SECTION 4.1.

General. The Executive’s employment may be terminated by the Company during the Term as
provided in this Error! Reference source not found.. Upon termination of employment, the Term
shall end and the Executive shall be paid the pro-rated portion of the Salary accrued but unpaid to
the date of his termination. The Executive’s rights under the Company’s employee benefit plans
shall be determined under the provisions of such plans and/or applicable law and any payments due
under such plans shall be distributed pursuant to the provisions thereof.

     SECTION 4.2.

Death or Disability. The Executive’s employment hereunder shall terminate automatically as
of the date of his death, and the Company may at any time at its option, exercised by notice to the
Executive, terminate his employment for “disability” (as hereinafter defined). In the event of
termination for death or disability, the Company, subject to the provisions of Section Error!
Reference source not found., shall have no further obligations or liabilities to the Executive
hereunder. For purposes of this Agreement, the term “disability” means any physical or mental
illness, disability or incapacity which, in the good faith determination of the Board, prevents the
Executive from performing the essential functions of his position hereunder for a period of not
less than ninety consecutive days (or for shorter periods totaling not less than one hundred and
twenty days) during any period of twelve consecutive months.

     SECTION 4.3.

Cause. The Company may, at any time, at its option, exercised by notice to the Executive,
terminate his employment for cause when cause exists. In the event of termination for cause, the
Company, subject to the provisions of Section Error! Reference source not found., shall have no
further obligations or liabilities to the Executive hereunder. For purposes of this agreement, the
term “cause” means (i) any conviction of the Executive for a felony or misdemeanor (other than for
minor motor vehicle offenses or other minor offenses); (ii) any material breach by the Executive of
this Agreement or the willful failure of the Executive to comply with any lawful directive of the
Supervisor, the President or the Board or any lawful policy of Lindsay or the Company; or (iii)
dishonesty or gross negligence by the Executive in the performance of his duties hereunder.

     SECTION 4.4.

Other Than For Cause. The Company may, at any time, at its option, terminate the
employment of the Executive other than for cause, death or disability, in which event the Company
shall continue to pay the Executive his Salary, at the rate in effect on the date of his
termination, for a period of one year (or, if shorter, the remainder of
the Term), in the manner specified in Section 3.1, subject to execution of the release referred to
in Section 4.6 below and the expiration of all revocation periods under applicable law with respect
to such release (and subject to continued compliance by the executive with ARTICLE V).

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     SECTION 4.5.

Extension. Any extension of the Term must be agreed upon in writing by both parties
hereto.

     SECTION 4.6.

Satisfaction of Liabilities. No amounts shall be payable by the Company to the Executive
under this Error! Reference source not found. until the Executive executes a general release in a
form reasonably acceptable to the Company. Upon the delivery of such executed general release to
the Company and subject to the Company’s compliance with Section 4.4, the Company shall have no
further liability of any kind or nature whatsoever to the Executive relating to this Agreement
under law or this Agreement.

     SECTION 4.7.

Assistance to Company. The Executive agrees that in the event any administrative or legal
proceeding is instituted against Lindsay, the Company or any of its affiliates in connection with
any action taken while the Executive was in the Company’s employ, the Executive will assist and
cooperate in defense of such action or proceeding.

ARTICLE V

COVENANTS AND REPRESENTATIONS

     SECTION 5.1.

Non-Competition. In view of the fact that the Company is engaged in a specialized
business, and to induce Lindsay to enter into the Merger Agreement, and in recognition of the
consideration to be received by the Executive in connection with this transaction, the Executive
agrees that, during the Term (or, in the event the Executive’s employment is terminated pursuant to
Section 4.3 or 4.4, the Restricted Period), he will not, within the continental limits of the
United States, (i) directly or indirectly engage in the business of manufacturing, leasing or
selling highway safety barriers or crash cushions or conducting crash tests, either for himself or
for any person, employer, business or other entity or (ii) become interested in any such business,
directly or indirectly, as an individual, partner, shareholder, officer, director, principal,
agent, employee, trustee, consultant or in any other relationship or capacity; provided, however,
that nothing contained herein shall be deemed to prohibit the Executive from acquiring solely as an
investment up to two percent of the issued and outstanding shares of capital stock of any public
corporation engaged in manufacturing, leasing or selling highway safety barriers or crash cushions
or crash testing. The “Restricted Period” means: (i) in the event that the Executive’s employment
is terminated other than for cause, death or disability pursuant to Section 4.4, the period
starting on the Closing Date and continuing until (A) such time as the Executive is no longer
eligible to receive the Salary pursuant to Section 4.4 or (B) two years following the Closing,
whichever is later; and (ii) in the event that the Executive’s employment is terminated for cause
pursuant to Section 4.3, the period starting on the Closing Date and continuing two years following
the date of such termination.

     SECTION 5.2.

Non-Solicitation. During the Term and for a period of two years thereafter, the Executive
and any entity controlled by him or by which he is employed shall not (i) solicit, interfere with,
hire, offer to hire or induce any person who is or was an officer or employee of Lindsay, the
Company or any of their affiliates to discontinue his relationship with Lindsay, the Company or any
such affiliate or to accept employment by or enter into a business relationship with any other
entity or person or (ii) solicit, interfere with, induce or entice away any customer, vendor,
supplier or agent of Lindsay, the Company or any of their affiliates or in any manner persuade or
attempt to persuade any such person or entity to discontinue his relationship with Lindsay, the
Company or any such affiliate.

     SECTION 5.3.

Confidential Information. The Executive agrees to keep secret and retain in the strictest
confidence all confidential matters which relate to Lindsay, the Company or any of their
affiliates, including without limitation, customer lists, trade secrets, pricing policies and other
business affairs of Lindsay, the Company or any of their affiliates learned by him heretofore or
during the Term, and not to disclose any such confidential matter to anyone outside the Company,
whether during or after his period of service with the Company, except in the course of performing
his duties hereunder. Upon request by the Company, the Executive agrees to deliver promptly to the
Company upon

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termination of his services for the Company, or at any time thereafter as the Company
may request, all memoranda, notes, records, reports, manuals, drawings, designs, computer files in
any media and other documents (and all copies) relating to the business of Lindsay, the Company or
any of their affiliates which he may possess or have under his control.

     SECTION 5.4.

Inventions. The Executive agrees that all processes, technologies and inventions,
including new contributions, improvements, formats, formulas, packages, programs, systems,
machines, compositions of matter manufactured, developments, applications and discoveries which are
related in any manner to the business (commercial or experimental) of the Company or any of the
Company’s affiliates, whether or not capable of being patented, copyrighted or trademarked shall
belong to the Company and the Company shall be the sole owner of all the products and proceeds of
the Executive’s services, including intellectual or literary property in any form. The Executive
shall further (i) promptly disclose such new developments to the Company; (ii) assign to the
Company, without additional compensation, all patent and other rights to such new developments for
the United States and foreign countries; (iii) sign all papers necessary to carry out the
foregoing; and (iv) give a reasonable amount of testimony in support of his inventor-ship.

     SECTION 5.5.

Enforcement. If the Executive commits a material breach of any of the provisions of this
Error! Reference source not found., the Executive shall forfeit all rights to receive any amounts
of any nature whatsoever from the Company under this Agreement or otherwise and Lindsay and the
Company will be entitled to the following remedies: (i) damages from the Executive; (ii) to seek
injunctive or other equitable relief to restrain any breach or threatened breach or otherwise to
specifically enforce the provisions of this Error! Reference source not found., it being agreed
that money damages alone would be inadequate to compensate Lindsay or the Company and would be an
inadequate remedy for such breach; or (iii) any other rights and remedies Lindsay and the Company
may have pursuant to applicable laws.

     SECTION 5.6.

Representation. The Executive represents and warrants to the Company that he has full
power to enter into this Agreement and perform his duties hereunder and that his execution and
delivery of this Agreement and his performance of his duties hereunder shall not result in a breach
of or constitute a default under any agreement or understanding, oral or written, to which he is a
party or by which he may be bound.

ARTICLE VI

MISCELLANEOUS

     SECTION 6.1.

Voluntary Nature. The Executive represents, warrants and acknowledges that he is
voluntarily agreeing to the provision of this Agreement. The Executive has been urged to, and
hereby represents, warrants and acknowledges that he has had the opportunity to, obtain the advice
of his own attorney unrelated to the Company, Lindsay or any of their affiliates prior to executing
and delivering this Agreement.

     SECTION 6.2.

Notice. Any notice required or permitted to be given under this Agreement shall be
sufficient if it is in writing and is delivered in person or sent certified mail, return receipt to
(i) his residence in the case of the Executive, or (ii)
the President at Lindsay’s home office, located at 2707 N. 108th St., Suite #102, Omaha, Nebraska
68164, in the case of the Company. Notice shall be deemed effective upon receipt if made by
personal delivery or upon deposit in the United States mail.

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     SECTION 6.3.

Non-Assignability. Neither of the parties hereto shall have the right to assign this
Agreement or any rights or obligations hereunder without the prior written consent of the other
party; provided, however, that the Company may assign this Agreement without the prior written
consent of the Executive to any purchaser of the Company or Lindsay or of all or substantially all
of the Company’s or Lindsay’s assets, or to the surviving entity upon any merger or consolidation
of the Company or Lindsay with or into another entity.

     SECTION 6.4.

Applicable Law. This Agreement and the relationship of the parties in connection with the
subject matter of this Agreement shall be construed and enforced according to the laws of the state
of California without giving effect to the conflict of law rules thereof.

     SECTION 6.5.

Effect of Prior Agreements. This Agreement contains the full and complete agreement of the
parties relating to the employment of the Executive hereunder and supersedes all prior agreements,
arrangements or understandings, whether written or oral, relating thereto with the Company or any
of its affiliates. This Agreement may not be amended, modified or supplemented and no provision or
requirement may be waived except by written instrument signed by the party to be charged.

     SECTION 6.6.

Severability. Wherever possible, each provision of this Agreement will be interpreted in a
manner to be effective and valid, but if any provision is held invalid or unenforceable by any
court of competent jurisdiction, then such provision will be ineffective only to the extent of such
invalidity or unenforceability, without invalidating or affecting in any manner the remainder of
such provision or the other provisions of this Agreement. If any provisions of Section Error!
Reference source not found. or Error! Reference source not found. are held to be unreasonable,
arbitrary, invalid or unenforceable, such provisions will be considered divisible with respect to
scope, time and geographic area, and in such lesser scope, time and geographic area, will be
effective, binding and enforceable against the Executive to the greatest extent permissible.

     SECTION 6.7.

Absence of Waiver. The failure to enforce at any time any of the provisions of this
Agreement or to require at any time performance by the other party of any of the provisions hereof
shall in no way be construed to be a waiver of such provisions or to affect either the validity of
this Agreement or any part hereof or the right of either party thereafter to enforce each and every
provision in accordance with the terms of this Agreement.

     SECTION 6.8.

Arbitration. Any dispute, disagreement or other question arising under this Agreement or
the interpretation thereof shall be settled by final and binding arbitration before a single
arbitrator under the arbitration provisions of the Employment Dispute Resolution Rules of the
American Arbitration Association, then in effect, and judgment upon the award may be entered in any
court having jurisdiction thereof.

     SECTION 6.9.

Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute one and the same instrument.

[Remainder of Page Left Blank Intentionally]

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IN WITNESS WHEREOF, the parties have executed and delivered this agreement as of the date first
above written.

	 	 	 	 	 
	Company: 	BARRIER SYSTEMS, INC.

 	 
	 	By:  	/s/ Chris Sanders
 	 
	 	 	Name:  	Chris Sanders 	 
	 	 	Title:  	Chief Operating Officer 	 
	 

	 	 	 	 	 
	 	 	 
	Executive: 	/s/ Owen Denman
 	 
	 	Owen Denman 	 
	 	 	 
	 

Acknowledged as of the 27th day of

April, 2006 by:

LINDSAY MANUFACTURING CO.

	 	 	 	 	 
	By:

	 	/s/ Richard W. Parod
 

	 	 
	 

	 	Name: Richard W. Parod	 	 
	 

	 	Title: Chief Executive Officer	 	 

84exv10w3

 

Exhibit 10.3

LEASE DEED

THIS DEED OF LEASE (hereinafter referred to as the “Lease Deed” or “Deed”) is made and
executed on this the 18th Day of August, 2006, at Bangalore.

BETWEEN

M/s. M.K.CHAKRAPANI & CO., a partnership firm, represented herein by its Partner and Authorised
Signatory, Mr. Suresh Lakshmikanth, having its office at “ Suraj Ganga Arcade”, No.332/7,
14th Cross, 2nd Block, Jayanagar, Bangalore 560 011, (hereinafter called the
“LESSOR”, which expression shall, wherever the context so requires or admits, mean and include the
successors of the said firm and the legal heirs, executors, administrators and representatives of
each of the partners from time to time) of the ONE PART.

AND

AAROHI COMMUNICATIONS PVT. LTD., a wholly owned subsidiary of Emulex Communications Corporation,
USA, represented by the Head-India Centre, Mrs. Shanti Subbaraman, having its registered office at
No. 41, 100 Ft Road, VI Block, Koramangala, Bangalore-560 095, (hereinafter referred to as the
“LESSEE”, which expression shall, wherever the context so requires or admits, mean and includes its
subsidiaries, affiliates or group entities, successors-in-interest and assigns) of the OTHER PART.

The LESSOR and the LESSEE are collectively referred to as the “Parties” and individually as a
“Party”

WHEREAS, the LESSOR is the owner of the immovable property named “Suraj Ganga Soft Park”,
comprising of the site bearing No. 34, Opposite Mini Forest, 3rd Phase, 1st
Main, J P Nagar, Bangalore -560078 including the land and the building built thereon (hereinafter
the “said Building”);

AND WHEREAS, the LESSOR has agreed to lease the entire 1st Floor of the said Building,
along with the fit-outs listed in the Annexure attached to this Lease Deed together with the 12
(Twelve) car park spaces in the basement of the said Building and two wheeler parking spaces in
the land adjacent to the said Building. The LESSEE shall also be entitled to the

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common rights granted to all the tenants of the said Building in the common areas. The LESSEE shall
be entitled to use the cafeteria on the Terrace, of the said building. All the aforesaid areas
being taken on lease by the LESSEE along with the rights pertaining thereto and the areas available
for the use of the LESSEE are more fully described in the Schedule to this Deed of Lease and is
hereinafter for the sake of brevity called the “Schedule Property”

WHEREAS, the LESSEE is engaged in the business of software development and other related activities
in Bangalore and has found the Schedule Property suitable for their business purposes and have
approached the LESSOR to take on lease the same from the LESSOR.

WHEREAS, the LESSOR being the owner of the Schedule Property with the right to lease the same to
the LESSEE on the terms herein provided has offered the same on lease to the LESSEE making the
following representations:

	 	a)	 	That the LESSOR has the ownership of the Schedule Property and no one else, including
any present or erstwhile Partner of the LESSEE has any similar right, interest or share
therein and the LESSSOR is entitled to lease the Schedule Property to the LESSEE as
provided herein.
	 
	 	b)	 	That save for the mortgage on favour of Union Bank, Indore, the Schedule Property is
free from all encumbrances. The Lessor confirms that there are no attachments, acquisition
or court proceedings or charges of any kind in or over the Schedule Property.
	 
	 	c)	 	That there is no impediment for letting out the Schedule Property to the LESSEE in the
manner provided for herein and that the LESSEE shall have no obligation to make payments to
any third party for use of the Schedule Property.

AND WHEREAS, the LESSOR has represented to the LESSEE that, save for the mortgage on favour of
Union Bank, Indore, the absolute title of the Schedule Property is vested with the LESSOR.

AND WHEREAS, the LESSEE confirms and assures the LESSOR that there is no impediment of whatsoever
nature for it under any law to take the Schedule Property from the LESSOR on lease for the purposes
of its business.

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AND WHEREAS, the LESSEE, based on the aforesaid representations made by the LESSOR has agreed to
take on lease the Schedule Property upon the terms and conditions hereinafter contained and agreed
between the Parties.

NOW THEREFORE, THIS AGREEMENT TO LEASE WITNESSETH AS FOLLOWS:

	1.	 	UNDERSTANDING OF THE PARTIES:
	 
	 	 	In consideration of the rent herein reserved and of the covenants on the part of the LESSEE
to be performed and observed, the LESSOR does hereby grant and lease unto the LESSEE, and
the LESSEE does hereby take on lease from the LESSOR, the Schedule Property being the entire
First Floor of the said Building comprising of a super-built up area measuring 13,592 sft.
(Thirteen thousand five hundred and ninety two square feet only) located at No. 34, Opp Mini
Forest, 3rd Phase, 1st Main, J P Nagar, Bangalore–560078. The Schedule
Property is furnished with the fit outs detailed in the Annexure attached to this Deed. The
LESSEE also has the sole and exclusive right to use the designated cafeteria area of 1000
Sqft. (One thousand square feet) on the terrace, 12 (Twelve) covered car parking spaces in
the basement of the said Building, 45 two wheeler parking space in the land adjacent to the
said Building, together with easements, rights and advantages appurtenant there to and right
of use and enjoyment of common areas of the said Building. All of the areas being taken on
lease by the LESEE and the attendant rights of the LESSEE are more fully described in the
Schedule of this Lease Deed.
	 
	2.	 	LEASE DURATION
	 
	2.1	 	The Parties have, in good faith, agreed that the lease commencement date shall be on or
before 28th August 2006, by which date the LESSOR shall deliver possession of the
Schedule Property with fixtures, fittings and workstations, as per the inventory attached. The
brief particulars of the fixtures provided by the LESSOR are described in the Annexure
attached to this Lease Deed. The date of commencement for lease shall hereinafter be called as
“Commencement Date” and the lease shall be in force initially for a period of Five (5) years
(“Initial Term”) from the said Commencement Date, out of which the minimum lock-in period
shall be thirty (30) months (hereinafter called “lock-in

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period”) including notice period of three (3) months. There shall be an escalation of Five
Percent (5%) in the monthly rent every year as provided in clause 3.1 herein, with effect
from the expiry of 12 months from the Commencement Date on the last paid rent till the
expiry of the Initial Term. The lease upon expiry of the Initial Term may be renewed at the
sole option of the LESSEE, subject to LESSEE issuing three (3) months prior written notice
of its intention to renew the lease before expiry of the Lease Term, for a further period of
3 (Three) years or such period as mutually agreed between the Parties. The Parties shall in
respect of each extension duly stamp and register a fresh lease deed for the purpose. The
“Commencement Date” shall be the date the LESSOR actually hands over the possession of the
Scheduled Property to the LESSEE duly ready for Customs Bonding and after completing all
painting, cleaning, touch-up work, as approved by the LESSEE.

	2.2	 	All payments under this Lease Deed shall be made by crossed cheque payable in
Bangalore, or bank wire transfer acceptable to LESSOR in favour of the LESSOR and shall be
delivered to the LESSOR at its address mentioned above in person or by courier / registered
post acknowledgement due. The obligation of the LESSEE is fully discharged by making
payments to the LESSOR under this Lease Deed and as a confirmation of the same the LESSOR
shall issue receipts of such payment by the LESSEE.
	 
	3.	 	RENTALS:
	 
	3.1	 	The monthly lease rent payable by the LESSEE during the first year for lease of the
Schedule Property shall be Rs. 59/- per Sqft. (Rupees Fifty Nine per square foot)
aggregating to Rs. 8,01,928.00/- (Rupees Eight Lakhs One Thousand Nine Hundred and Twenty
Eight) per month for the total area of 13,592 sft. (Thirteen thousand five hundred and
ninety two square feet) Which shall be increased after the end of every year by 5% on the
last paid rent and the said escalated monthly rentals shall be paid by the LESSEE there
after.
	 
	3.2	 	The lease rental for the sole and exclusive use of the Cafeteria on terrace of the said
Building shall be Rs 20,000 (Rupees twenty Thousand) per month calculated at Rs 20/- per
sq. ft (Rupees Twenty per square foot) for a covered area of 1,000 sft. (One thousand
square feet) Including general maintenance of cafeteria and shall become

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payable from the Lease Commencement Date, subject to the LESSOR handing over possession of
the Leased Premises to the LESSEE.

	 	3.3	 	The lease rental for 12 (Twelve) car parking spaces in the basement of the Schedule
Property shall be Rs.24,000 (Rupees Twenty Four thousand) per month calculated at
Rs.2,000/- (Rupees Two Thousand) per car park including maintenance of the basement and
shall become payable from the Lease Commencement Date, subject to the LESSOR handing over
possession of the Leased Premises to the LESSEE.
	 
	 	3.4	 	The LESSEE shall pay a maintenance charge of Rs.2.50/-(Rupees Two and Fifty Paisa only)
per square foot per month, aggregating to Rs. 33,980 (Rupees Thirty Three Thousand Nine
Hundred & Eighty only) per month to the LESSOR by the 5th day of the
succeeding month inclusive of all applicable taxes and subject to TDS.

In summary, rent shall be paid by the LESSEE to the LESSOR in following manner in single payment as
follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rent
	 	 	– 13592 x 59	/-	 	 	=	 	 	 	8,01,928.00	 
	Car parking
	 	 	–      12 x 2000	 	 	 	=	 	 	 	24,000.00	 
	Cafeteria
	 	 	–     1000 x 20	 	 	 	=	 	 	 	20,000.00	 
	Maintenance
	 	 	–  3592 x 2.50	 	 	 	=	 	 	 	33,980.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	8,79,908.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 

	 	3.5	 	The LESSEE shall be entitled to deduct income tax at source as per the rates specified
under the Income Tax Act, 1961 and other applicable laws and shall issue the Tax Deduction
at Source Certificate to the LESSOR within the period prescribed under the above Act.
	 
	 	3.6	 	The LESSEE shall pay the said monthly lease rentals to the LESSOR on or before
5th day of each succeeding month for the preceding month.

Page 5 of 22

 

	4.	 	SECURITY DEPOSIT

In consideration of the LESSOR granting to the LESSEE, on lease the Schedule Property, the
LESSEE in assurance of its due performance of obligations, shall pay the LESSOR an interest free
refundable security deposit being an amount of Rs. 88,21,000 /- (Rupees Eighty Eight Lakhs
Twenty One Thousand only) in the following manner:

	 	a)	 	The initial deposit of Rs. 16,00,000/- (Sixteen Lakhs only) has been paid at the time
of signing the LOI vide Chq. No. 735563 dated 26th July, 2006 drawn on SBI,
IFB, Bangalore, in favour of M/s. M. K. CHAKRAPANI & CO.
	 
	 	b)	 	An amount of Rs. Rs. 40,00,000/-(Forty Lakhs only) is being paid at the time of
signing this Lease Deed vide Chq. No. 735565 dated 17th August, 2006 drawn on
SBI, IFB, Bangalore, in favour of M/s. M. K. CHAKRAPANI & CO.
	 
	 	c)	 	Balance amount of Rs. 32,21,000/-(Rupees Thirty Two Lakh Twenty One Thousand only)
shall be paid vide Chq, No. 735566 at the time of taking possession of the premises.

The LESSOR shall issue valid Receipts for accepting the Security Deposit.

	4.1	 	The security deposit shall be held by the LESSOR during the period of the lease and shall be
returned 100%, without any interest, upon the expiry or earlier termination of the lease as
the case may be, subject to legitimate deductions, if any, under this lease and towards
non-performance of the LESSEE such as non-payment of monthly rentals, outstanding electricity,
maintenance charges.
	 
	5	 	In the event, the LESSOR fails to refund the Security Deposit upon expiry or earlier
termination of the lease, the LESSOR shall be liable to refund the Security Deposit amount
together with penal interest @1% per month to be calculated from the date the amount becomes
due till the date of actual refund and the LESSEE will be entitled to continue to use and
occupy the Schedule Property without being liable to pay any rent thereof until the said
Security Deposit is refunded along with interest.

Page 6 of 22

 

	5.	 	COVENANTS OF THE LESSEE
	 
	5.1	 	Electricity Charges

	 	a)	 	The LESSEE shall be responsible for payment of all the electricity charges supplied by
BESCOM and for the power generated and supplied by the LESSOR for LESSEE’s use and the
LESSEE agrees to pay the monthly consumption at actual as per the BESCOM and at Rs.25/-
per unit for the DG power with a standard demand charges of Rs.10,000/- per month for DG
from the Commencement Date of this lease in respect of the actual usage as per the
consumption as recorded in the 2 (two) sub meters provided by the LESSOR and invoice
raised.

	5.2	 	Water Charges

The LESSEE shall pay the electricity charges for usage of water pump at actual. The LESSOR
shall be responsible for the installations and maintenance of all necessary water
connections such as bore-well, pumps, storage tanks, pipes, faucets and fittings including
in the common bathrooms etc., in the Schedule Property at no cost to the LESSEE and shall
whenever necessary replace such fittings, pumps, pipes, faucets etc.

	5.3	 	Signage:

The LESSOR assures the LESSEE and confirms that the LESSEE may erect and display its name,
sign-board, logo or other signage of appropriate size and as directed by the building rules
and regulations, at a prominent space to be designated by the LESSOR, at the entrance of the
said Building and near the lobby of the entrance of the said Building and at the entrance
door of the respective Units, for which the LESSEE may use its corporate colors and
lettering.

	5.4	 	Electrical and Telecommunication Wiring and Piping:

The LESSEE, in addition to the fixtures, fittings, and amenities provided by the LESSOR
within the Schedule Property, shall be entitled to install electronic and

Page 7 of 22

 

electrical equipments, burglar alarms, security systems, computers, servers,
air-conditioners, power generator sets, telecommunication, UPS, data and / or video
communication lines etc., for undertaking its activities in the Scheduled Property.

	5.5	 	Alterations:

	 	a)	 	The LESSOR shall provide fully furnished plug and play type facility to the LESSEE. The
LESSOR shall handover final Inventory list to the LESSEE at the time of signing the
agreement along with Layout Plan, Interiors Diagram, Electrical and Networking Drawing etc.
The LESSOR shall take a video recording of the entire premise and its interiors and give a
copy to the LESSEE.
	 
	 	b)	 	The LESSEE shall be entitled to carry out non structural alterations of the Schedule
Property if required. The LESSEE shall take due care not to damage the main structure of
the said building as well as fixtures, fittings and amenities provided by the LESSOR, while
erecting or dismantling such partition and/or construction. In the event any such damage
occurs, not being damage arising out of normal wear and tear, the LESSEE shall pay to the
LESSOR all reasonable cost for the repair of the damage or repair the damage, at its cost.
The LESSEE shall not be required to pay any additional amount by way of rentals or any
other amounts in connection with the installation of the generators, air-conditioners or
other auxiliary equipment in the Schedule Property.
	 
	 	c)	 	The LESSEE shall have the right to co-locate additional ACs and UPS over and above the
AC and UPS provided by the LESSOR at its cost and the same shall continue to be the
property of LESSEE.

	5.6.	 	MAINTENANCE

	 	a)	 	The LESSOR by itself or through a service provider shall maintain and keep the said
Building and Schedule Property in good condition. The Building and the Schedule Property
including all amenities and infrastructure provided will be maintained to a level that
supports the business operations of the LESSEE 24 hours a day and during the entire tenure
of this Deed.

Page 8 of 22

 

	 	b)	 	The LESSOR shall ensure that any service provider engaged by it carries out all
necessary maintenance and repairs to the said Building and the Schedule Property
	 
	 	c)	 	The LESSOR shall ensure that maintenance is carried out promptly and that the LESSEE
shall be entitled to carry out any non completed obligation of the service provider and
deduct the cost for the same from the maintenance charges payable to the LESSOR, provided
the service provider is first called upon to carry out its obligation and fails to do the
same within a period of 24 hours from receipt of notice.
	 
	 	d)	 	The maintenance charges is for the general maintenance of the premise like:

	 	•	 	Common area Maintenance
	 
	 	•	 	Building General Security
	 
	 	•	 	Common area lighting
	 
	 	•	 	Elevators
	 
	 	•	 	Electricity for common area lighting & Water pumping
	 
	 	•	 	Transformer and Lift maintenance and related compliance
	 
	 	•	 	Landscaping

	 	e)	 	The LESSEE shall use the said facilities with normal care and caution and replace all
broken fittings and fixtures with same quality materials, however, subject to normal wear
and tear.

	5.7.	 	USE OF THE SCHEDULE PROPERTY

	 	a)	 	The LESSEE shall use the Scheduled Property for official and lawful business purposes
only and shall not use for residential purpose or permit the use of the Schedule Property
for any unlawful purpose of any thing likely to endanger the building. The LESSEE also
agrees that in the course of usage of the Schedule Property, the LESSEE, its agents,
servants etc. shall not act in a manner which may cause any nuisance, annoyance or
obstructions to the other users of facilities such as lifts, common passages, staircases,
basement, terrace area etc. in the building. The LESSOR confirms that the Schedule Property
can be legally used for the business of

Page 9 of 22

 

the LESSEE which is software development, services and other information technology related
activities and that there is no law that prevents such use by the LESSEE.

	 	b)	 	In the event the LESSEE wishes to set-up a Software Technology Park / Export Oriented
Unit and is required to custom bond the Scheduled Property, the LESSOR undertakes to give
the necessary No Objection Certificate and / or authorization and / or permission to the
LESSEE to have the Scheduled Property bonded under Customs Act. The LESSEE agrees and
undertakes to de-bond the Schedule Property on expiry or earlier termination of the lease
period. There are no claims on the Schedule Property on account of any prior lease or
license
	 
	 	c)	 	The LESSEE shall, during the lease period and any extension thereof, have every right
to use the premises for the business of its own, or its subsidiaries, sister concerns,
business associates and shall have the right to sublease during the tenancy period for
lawful business purposes under written intimation to the LESSOR.
	 
	 	d)	 	In the event of sub letting or under letting as above, the LESSEE affirms that all
obligations agreed to be performed by the LESSEE under this lease shall always remain that
of the LESSEE.
	 
	 	e)	 	The LESSOR shall during warranty period transfer the warranties obtained from
manufacturers for the equipments / machinery installed within the Scheduled Property for
exclusive use of the LESSEE.

	6.	 	COVENANTS OF THE LESSOR
	 
	6.1	 	Electricity Supply:

The LESSOR agrees and undertakes to provide 125 (One hundred and twenty five) KVA power load
with 100% DG back-up power and 44 KVA UPS Power to the Schedule Property and shall ensure
regular supply of electricity, UPS and DG Power to the Scheduled Property 24 hours and 365
days.

	6.2	 	Water Supply:

The LESSOR shall provide adequate supply of bore-well water to the Schedule Property
for the consumption of the LESSEE.

Page 10 of 22

 

	6.3	 	Delivery of Possession
	 
	 	 	The LESSOR agrees to deliver possession of the Scheduled Property to the LESSEE on or before
28th August, 2006 after completion of modifications and alteration works at its
cost as desired by LESSEE. The Parties agree and confirm that the LESSEE will only be liable
to pay rent, car parking charges, maintenance charges, electricity charges, and other
outgoings to the LESSOR from the day the possession of the Scheduled Property is handed over
to the LESSEE duly complete in all respects.
	 
	6.2	 	Peaceful Possession
	 
	 	 	On the LESSEE paying the rents hereby agreed to be paid and the LESSEE observing and
performing the several covenants and conditions agreed upon, the LESSEE shall peacefully
hold and occupy the Schedule Property, from the date of delivery of possession till the
expiry of the lease term or any extended period thereof or earlier termination as provided
herein without any let, hindrance, interruption or disturbance by the LESSOR or any person
claiming under, through or in trust for the LESSOR. The LESSOR represents and warrants that
the LESSOR is in possession of the Scheduled Property and no one else has any ownership,
rights, interest in the Schedule Property that will prevent the LESSOR from granting a lease
of the Schedule Property in the manner provided for herein. Further, the LESSOR represents
that save for the mortgage in favour of the Union Bank, Indore, there are no charges,
claims, negative covenants, attachments, encumbrances, acquisition proceedings, any
threatened proceedings or similar nature or obligations in respect of the Scheduled Property
or anything which may be an impediment or bar affecting the free and vacant possession and
use of the Schedule Property by the LESSEE.
	 
	 	 	The LESSOR also represents that no agreements or interest has been created in respect of the
Schedule Property in favour of the third parties other than executing this Lease Deed. The
LESSOR acknowledges that the LESSEE has entered into this Lease Deed relying solely on the
aforesaid representations and the LESSOR shall indemnify and keep indemnified the LESSEE
from and against any claims that arise out of any breach of the LESSOR of its obligations
herein or any claims that arise out of misrepresentation by the LESSOR.

Page 11 of 22

 

	6.3	 	Payment of Tax and other outgoings
	 
	 	 	The LESSOR confirms that all taxes in respect of the Schedule Property have been paid in
full until the date hereof. Further, the LESSOR shall pay all the current and future
municipal taxes and any other outgoings, charges, cesses, dues or impositions that may be
levied in respect of the Schedule Property by the Bangalore Mahanagar Palike including, by
way of a fresh assessment, the Government of Karnataka or the Central Government or any
other Public Body or Local Authorities. Any increase in the rate of property tax or other
outgoings during the period of lease shall be borne by the LESSOR. In particular the LESSOR
confirms that it owes no dues to any statutory authorities such as the Department of Customs
and Central Excise, Sales Tax and Income Tax and no charges exist on the Schedule Property
on account of any non payment of dues.
	 
	6.4	 	Insurance
	 
	 	 	The LESSOR shall at all times during the period of lease insure and keep insured the said
Building and more particularly the Schedule Property against structural damage, damage by
fire, earthquake, riots and other risks at their own cost. The LESSEE shall obtain separate
insurance cover for all the equipment, temporary constructions, fittings and fixtures and
other property owned by the LESSEE within the Schedule Property during the tenure of the
lease.
	 
	6.5	 	Repairs and Maintenance
	 
	 	 	The LESSOR shall complete all the external and internal civil repair works if any, and
maintenance works like touch-ups, painting, cleaning of the entire premises including
carpets, pantry, rest-room areas, Data and Voice Network and Electrical systems testing etc
and bring the Schedule Property to usable condition, before handing over possession thereof
to the LESSEE, not later than 28th August, 2006. After the handing
over of Schedule Property, internal maintenance including fit-outs like, repair of chairs,
AC, UPS, Networking, EPABX, other fit-outs and Cafeteria shall be borne by the LESSEE.

Page 12 of 22

 

	 	a)	 	The LESSOR shall, up on receipt of notice from the LESSEE, carry out all major repairs
including damage to water pipes, electrical wiring, building collapse, etc to and at the
Scheduled Property. In the event the LESSOR fails to do so, notwithstanding any law for the
time being in force, the LESSEE shall be at liberty to carry out such repairs and all such
costs incurred therefore shall be to the account of the LESSOR and shall be deducted from
the rent. The LESSEE shall be responsible for the day-to-day maintenance of the Scheduled
Property including all amenities installed by the LESSEE therein.
	 
	 	b)	 	The LESSOR shall ensure that the building, basement and areas surrounding the Schedule
Property including common passage, staircase, terrace, lifts etc. are maintained at its
cost in a state of good repair.
	 
	 	c)	 	All minor repairs to the Schedule Property (those which relate to tenant improvements
and which the LESSEE has installed at its own cost and expense and not including anything
installed, erected or constructed by the LESSOR) shall be carried out by the LESSEE at its
own cost and expense.
	 
	 	d)	 	In case of UPS and ACs, the LESSEE shall at its cost, take annual maintenance or
otherwise, carry out the periodical maintenance and if, incase, the UPS Battery expires due
to its technical life, the LESSOR shall replace the battery.

	6.6	 	Unlimited Access
	 
	 	 	After commencement of the lease, the LESSOR shall provide to the LESSEE or to any employee or
representative of the LESSEE full, free and unhindered access to the Schedule Premises with
all utilities and all riser ducts and common raceways throughout the said Building all the 24
hours of the day, 365 days of the year.
	 
	6.7	 	Sale or Disposal of Premises
	 
	 	 	The LESSOR undertakes that in the event the Schedule Property or any part thereof is sold,
transferred, mortgaged or conveyed to any third party by the LESSOR, the LESSOR shall
stipulate with such third party purchaser that the transfer will be fully

Page 13 of 22

 

subject to this Lease Deed between the LESSOR and the LESSEE. The LESSOR further agree to
ensure that the transfer deed executed by them carries a covenant obligating the third party
purchaser to acknowledge and accept the LESSEE as his own LESSEE on the same terms and
conditions of this Lease Deed. The LESSOR shall ensure that the rights of the LESSEE under
this Deed of Lease are not affected or curtailed by virtue of such transfer and shall ensure
that the security deposit paid hereunder is returned to the LESSEE upon expiry or earlier
termination of the Lease Deed.

	6.8	 	The LESSOR will do all such further acts, deeds or things or execute such further documents
and assurances and get such further documents, consents and approvals from any authorities, as
may be called upon by the LESSEE or as may be necessary, to perfect and clear the unencumbered
and absolute leasehold rights and interest of the LESSEE in the Schedule Property and its
continued possession and use by the LESSEE for its business purposes;
	 
	6.9	 	The LESSOR has not, in the use and occupation of the Schedule Property or the construction
of the said Building in which the Schedule Property is situated, or otherwise, contravened
any law, rule, regulation or other legal requirements whatsoever;
	 
	6.10	 	The LESSOR has provided the Schedule Property with water and sewage connections in accordance
with applicable laws; and
	 
	6.11	 	The LESSOR agrees to indemnify and shall keep indemnified the LESSEE, from and against all or
any claims, damages, costs, expenses and consequences whatsoever arising from or in any manner
related to any non-performance or breach by the LESSOR of the provisions of this Deed or of
any law, including in respect of the construction, use and/or occupation of the Schedule
Property or the said Building;

Page 14 of 22

 

	7.	 	OTHER MUTUAL COVENANTS:
	 
	7.1	 	Inspection of the Schedule Property
	 
	 	 	The LESSOR shall, subject to the security requirements of the LESSEE, have the right to
enter the Schedule Property for the purpose of inspecting the condition of the same or
carrying out any repair after giving the LESSEE a written notice of 24 (Twenty Four) hours
by hand delivery, as well as verbal notice of its intention of doing so provided however
that the intended time of inspection is within the working hours of the LESSEE except in
cases of emergency when no notice shall be required.
	 
	7.2	 	Developments to the building and occupation of the same by other occupants/LESSEE
	 
	 	 	The LESSEE shall not in any way obstruct the LESSOR from undertaking any future development
proposed to be made in the building as also developments to the premises of the other
occupants / LESSEEs in the building provided such development does not interfere with or
obstruct the peaceful enjoyment of the Schedule Property or other common areas in the
building by the LESSEE and provided that such development is in accordance with law.
	 
	7.3	 	Disputes
	 
	 	 	The parties agree that they intend to discharge their obligations in utmost good faith.
They, therefore, agree that they will, at all times, act in good faith, and make all
attempts to resolve all differences howsoever arising out of or in connection with this Deed
by discussion. If within fifteen (15) days of the commencement of the discussions the
dispute is not resolved the dispute shall be referred to arbitration, provided that (i)
Arbitration shall be conducted in accordance with the provisions of the Indian Arbitration
and Conciliation Act, 1996 (ii) There shall be one arbitrator nominated jointly by the
parties, failing which. there shall be three (3) arbitrators, one each nominated by the
LESSOR and the LESSEE and the other chosen by the two (2) arbitrators so nominated (who
shall be persons of professional repute and who are not directly or indirectly connected
with the parties concerned) whose appointment shall be agreed

Page 15 of 22

 

between the parties within seven (7) days of the service of an arbitration notice, and (iii)
The Parties agree that until the arbitration proceedings are complete, they shall not take
their disputes to the court of law. All hearings shall be held in Bangalore and the language
of the arbitration shall be English.

	8	 	SUSPENSION:
	 
	 	 	If the Schedule Property is destroyed or damaged by fire, flood or in any other manner
becomes unfit for occupation or use, and upon receipt of notice from the LESSEE to this
effect, the rent or a part thereof according to the nature and extent of the damage, shall
be suspended till such time as the Schedule Property is once again rendered fit for
occupation and use. No rent as provided in clauses 3.1; 3.2; 3.3 and 3.4 herein shall be due
for such time of suspension If the Schedule Property or any significant portion thereof, is
rendered unfit for use and the same is not made fit for use within (30) days by the LESSOR,
parties after mutual negotiation, may arrive at the decision to have the lease terminated
and accordingly, LESSEE shall have the right to terminate this lease not withstanding notice
clause and lock in clause 10.2 herein and without obligation to make further payments.
	 
	9	 	FORCE MAJEURE:
	 
	 	 	If the performance by either Party, of any of its obligations hereunder is prevented,
restricted or interfered with by reason of fire, or other casualties or accident, strike
(being a national, regional or city wide strike) or labour dispute, war or other violence,
any law or regulation of any government (excluding those relating to any violation or non
compliance with the rules and regulations governing construction and occupation of
buildings), or any act or condition whatsoever beyond the reasonable control of such party
(each such event shall be called a “Force Majeure” event), then such party shall be excused
from such performance to the extent of prevention, restriction or any interference,
provided, that such Party shall give prompt notice within a period of 30 days to the other
Party of such Force Majeure in such notice, including a description, in reasonable
specificity, of the cause of the Force Majeure. Such parties shall use reasonable efforts to
avoid or remove such cause of non-performance and shall continue performance hereunder
whenever such causes are removed. Any dispute

Page 16 of 22

 

arising in relation thereto shall be a dispute within the meaning of clause 7.3 herein
before contained.

	10.	 	TERMINATION
	 
	10.1	 	Neither Party shall be entitled to terminate this lease during lock-in period except for
reasons provided for in Clauses 10.1 (i), (ii) and (iii) below.

	 	i.	 	By mutual consent of Parties duly recorded in writing such terms as may be
agreed upon.
	 
	 	ii.	 	By either Party if the other Party hereto defaults in the performance of any of
its obligations under this Lease Deed and such default is not cured within 30 days from
the date of receipt of written notice of default issued by the non-defaulting Party in
this regard. By either Party, where any clause of this Lease Deed specifically provides
for termination.
	 
	 	iii.	 	If by operation of law and for the breach of the provisions contained in this
Lease by the LESSOR, the LESSEE is prevented from continuing the Lease.

	10.2	 	If in case, the LESSEE wish to terminate the Lease during lock in period, the LESSEE would
be liable to pay the balance rentals for the remaining part of lock-in period or till a new
tenant comes in, which ever is earlier.
	 
	10.3	 	The LESSEE may terminate this lease by giving to the LESSOR at lease (3) three months prior
written notice, and if terminated in this fashion, LESSEE shall owe no further amounts except
for amounts owed for use of the Schedule Property by LESSEE prior to termination. The LESSOR
may only terminate in the event of the LESSEE not paying rent for a period of three months
despite having notice of the same.
	 
	10.4	 	In the event of termination of the lease in any manner aforesaid, the LESSEE shall handover
possession of the Schedule Property to the LESSOR along with Amenities, fixtures and fittings
installed by the LESSOR, excepting normal wear and tear subject to the LESSOR not owing any
money / amount to the LESSEE on any account whatsoever,

Page 17 of 22

 

unless the LESSEE is prevented from such handover by reasons of destruction / demolition of
the Scheduled Property. Upon termination for any reason other than pursuant to LESSEE’s
breach, LESSEE shall owe no further amounts except for amounts owed for use of the Scheduled
Property by LESSEE prior to termination under these presents. Simultaneous with the LESSEE
handing over possession of the Schedule Property, the LESSOR shall hand over to the LESSEE the
entire security Deposit paid by the LESSOR to the LESSEE

	11.	 	NOTICES
	 
	 	 	Notices to be provided under this Lease Deed shall be in writing and delivered to the
address of the LESSOR as mentioned hereinabove and to the LESSEE at the Schedule Property
and shall be sent by hand delivery with acknowledgement obtained or through a recognized
courier. Notice shall be deemed to have been received, in the case of hand delivery on the
day after such delivery and in the case of courier, on the expiry of two days after the date
on which such courier is sent.
	 
	12.	 	HANDING OVER POSSESSION ON EXPIRY
	 
	 	 	On the expiry of the lease period or on earlier termination of the lease, the LESSEE shall
hand over possession of the Scheduled Property to the LESSOR or its agent in the same
condition under which the same has been let-out and as it has received it, normal wear and
tear excepted, subject to simultaneous refund of Security Deposit by the LESSOR to the
LESSEE. Notwithstanding any thing to the contrary contained or implied herein, all
improvements made by the LESSEE to the Schedule Property and fixtures installed at the
Scheduled Property shall always remain the property of the LESSEE and the LESSEE shall, at
its discretion, be entitled to remove the fixtures and other improvements at the time of
handing over vacant possession of the Schedule Property to the LESSOR but shall have no
obligation to remove such fixtures and other improvements, and in particular without
limitation shall have no obligation to remove network cabling installed in the Scheduled
Property.

Page 18 of 22

 

	13.	 	COSTS
	 
	 	 	The parties to this Deed of Lease shall each bear their respective legal, consultant or
other costs incurred in respect of the drafting, negotiation, execution and registration of
this Lease Deed.
	 
	14.	 	WAIVER
	 
	 	 	No forbearance, relaxation or inaction by any Party at any time to require the performance
of any provision of this Deed of Lease shall in any way affect, diminish or prejudice the
right of such Party to require the performance of that or any other provision of this Deed
of Lease or be considered to be a waiver of any right, unless specifically agreed in
writing.
	 
	15.	 	SEVERABILITY
	 
	 	 	In the event of any provision of this Lease Deed being held or becoming invalid,
unenforceable or illegal for any reason, this Lease Deed shall remain otherwise in full
force apart from the said provision, which will be deemed deleted. The parties shall however
attempt to replace the deleted provision with a legally valid provision that reflects the
same purpose of the deleted provision to the greatest extent possible with out having any
impact of financial loss to the parties.
	 
	16.	 	CHANGE OF NAME
	 
	 	 	Change in name of the LESSEE, during the term of this lease or on its extension, shall not
affect this lease Deed
	 
	17.	 	INDEMNITY
	 
	 	 	The LESSOR shall keep the LESSEE fully indemnified against any loss direct or indirect what
so ever arising out of breach of any of the above terms of this Lease Deed.

Page 19 of 22

 

	 	 	The LESSEE shall keep the LESSOR fully indemnified against any loss direct or indirect what
so ever arising out of breach of any of the above terms of this Lease Deed. The LESSEE shall
however not be liable for any consequential loss or damage (including for loss of business
or profit) even if advised the possibility of the same.
	 
	18.	 	GOVERNING LAW / JURISDICTION
	 
	 	 	Any disputes under this Lease Deed shall be resolved in all respects by the laws of India
subject to clause 7.3, within the jurisdiction of the High Court of Karnataka.
	 
	19.	 	COUNTERPARTS
	 
	 	 	This Deed of Lease may be executed in more than one counterpart, all of which shall be
considered one and the same agreement and each of which shall be deemed as original. The
original stamped and registered (if LESSEE so chooses) lease deed shall be retained by the
LESSEE.

SCHEDULE PROPERTY

	 	 	All that piece and parcel of immovable property comprising of a super built-up furnished area
of 13,592 sqft. (Thirteen thousand five hundred and ninety two square feet) being the
1st Floor of the building known as Suraj Ganga Soft Park, located at No. 34.Opp : Mini
Forest, 3rd Phase, 1st Main, J P Nagar, Bangalore –560078 together with
12 (Twelve) covered car parking spaces in the basement of the said Building specifically allotted
to the LESSEE, and 45 (Forty Five) Two Wheeler Parking spaces in the land adjacent to the said
Building and 1,000 Sqft (One thousand square feet) designated Terrace for Cafeteria and other
common amenities and facilities provided therein and the fit outs more fully described in
Annexure-1 and the site on which the Schedule Property stands bounded as follows:

Page 20 of 22

 

East By : Site No.25.

West By : Road.

North By : Site No.33.

South By : Site No.35.

The LESSEE shall also have the right to use the common amenities and facilities and the common
areas with all the other occupants of the said Building

IN WITNESS WHEREOF the LESSOR and the LESSEE have hereunto set their respective hands on
the day, month and the year first hereinabove written in the presence of the following witness:

	 	 	 
	Witness

	 	LESSORS
	1.

	 	M/s. M.K.CHAKRAPANI & CO.
	 
	 	 
	 

	 	Suresh Lakshmikanth

Partner
	 
	 	 
	 

	 	LESSEE:
	2.

	 	M/s. Aarohi Communications Pvt Ltd
	 
	 	 
	 

	 	Shanti Subbaraman

Head –India Centre

Place: Bangalore

Date: August 18, 2006

Page 21 of 22

 

Annexure-1

LIST OF FIT-OUTS IN 1ST FLOOR PREMISES

(As referred in schedule property)

First Floor : Super built up Area of 13,592 sqft. With fit-outs

	 	 	 
	Particulars	 	Quantity
	UPS — APC Symmetra 12KVA
	 	2 No’s
	UPS Systems 20KVA-APC
	 	1 No
	EPABX- 1 Stand Operator Console
	 	1 No with 300 extn.
	Blue & Black colour-Featherlite chairs
	 	194 No,s
	Workstations with keyboards
	 	83 No’s
	Pedestal unit
	 	83 No’s
	Blue star Air Conditioners
	 	14 No’s
	Blue Star Split AC 3TR Ductable
	 	1 No
	Electronic Security & Safety Systems
	 	1 No
	(C.C.TV)
	 	1 No
	Office Carpeting
	 	900 sq.mt
	False ceiling and AC Ducting
	 	Whole area
	Electrical installation
	 	Whole area
	Venetian Blinds
	 	All windows
	Fabrication MS Structure for scooter stand
	 	All windows
	Two wheelers parking
	 	40
	Access Control
	 	1
	Sofa (3 seaters 2 & 2 seaters 1) -
	 	3 No’s
	Reception Table
	 	1 No.
	Corner Box next to sofa 2x1’1/2 -
	 	2 No’s

	 	 	 	 	 	 	 	 	 
	Tables:	 	 	 	 	 	 	 	 
	Taxila
	 	Round Table	 	—	 	3x3	 	 
	Ujjani
	 	Table	 	—	 	3x5	 	1
	Nalanda
	 	Table	 	—	 	3x4	 	1
	Conference Room Tables	 	—	 	5x10	 	1
	Mithila
	 	 	 	—	 	3x6	 	2
	Vallabhi
	 	 	 	—	 	3x6	 	1
	Ajantha Table
	 	 	 	—	 	5x6	 	1
	White Boards
	 	 	 	—	 	3x4	 	1
	White Boards
	 	 	 	—	 	6x4	 	6
	 
	Networking for all the cabins and workstations	 	2

	 	 	 
	LESSORS

	 	LESSEE:
	M/s. M.K.CHAKRAPANI & CO.

	 	M/s. Aarohi Communications Pvt. Ltd
	 
	 	 
	Suresh Lakshmikanth

	 	Shanti Subbaraman
	Partner

	 	Head –India Centre
	Place: Bangalore
	 	 
	Date: August 18, 2006
	 	 

Page 22 of 22

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