Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

U.S. $1,500,000,000

 

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

 

Dated as of September 28, 2012

 

Among

 

3M COMPANY
 as Borrower,

 

JPMORGAN CHASE BANK, N.A.,
 as Administrative Agent,

 

CITIBANK, N.A.,
 as Syndication Agent,

 

DEUTSCHE BANK SECURITIES INC.,
 as Documentation Agent,

 

and

 

THE BANKS NAMED HEREIN,
 as Banks

 

 

J.P. MORGAN SECURITIES LLC

 

and

 

CITICORP GLOBAL MARKETS INC.,
 as Joint Lead Arrangers and Joint Bookrunners

 

 

Table of Contents

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
1
    
	
 
    	
1.1
    	
Generally
    	
1
    
	
 
    	
1.2
    	
Times
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
LINE OF CREDIT
    	
11
    
	
 
    	
2.1
    	
Revolving Advances
    	
11
    
	
 
    	
2.2
    	
Swingline Advances
    	
11
    
	
 
    	
2.3
    	
Bid Borrowings
    	
13
    
	
 
    	
2.4
    	
Reserved
    	
16
    
	
 
    	
2.5
    	
Conditions Precedent to Each Advance
    	
16
    
	
 
    	
2.6
    	
Increase of Commitments
    	
16
    
	
 
    	
2.7
    	
Extension of Commitment Termination Date
    	
17
    
	
 
    	
2.8
    	
Evidence of Debt
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
[Reserved]
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
FEES AND EXPENSES
    	
19
    
	
 
    	
4.1
    	
Commitment Fee
    	
19
    
	
 
    	
4.2
    	
Reserved
    	
20
    
	
 
    	
4.3
    	
Expenses
    	
20
    
	
 
    	
4.4
    	
Additional Fees
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
INTEREST
    	
20
    
	
 
    	
5.1
    	
Floating Rate
    	
20
    
	
 
    	
5.2
    	
LIBO Rate
    	
20
    
	
 
    	
5.3
    	
Default Rate
    	
21
    
	
 
    	
5.4
    	
Fees on LIBO Rate Advances; Capital Adequacy; Funding   Exceptions
    	
21
    
	
 
    	
5.5
    	
Mitigation of Yield Protection
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
DISBURSEMENTS AND PAYMENTS
    	
24
    
	
 
    	
6.1
    	
Requests for Borrowings
    	
24
    
	
 
    	
6.2
    	
Payments
    	
25
    
	
 
    	
6.3
    	
Prepayments
    	
27
    
	
 
    	
6.4
    	
Termination or Reduction of the Commitments
    	
28
    
	
 
    	
6.5
    	
Taxes
    	
28
    
	
 
    	
6.6
    	
Judgment Currency
    	
29
    
	
 
    	
6.7
    	
Defaulting Banks
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
CONDITIONS PRECEDENT
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
REPRESENTATIONS AND WARRANTIES
    	
31
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
COVENANTS
    	
31
    
	
 
    	
9.1
    	
Financial Information
    	
31
    
	
 
    	
9.2
    	
Covenants
    	
32
    

 

i

 

	
10.
    	
EVENTS OF DEFAULT AND REMEDIES
    	
34
    
	
 
    	
10.1
    	
Default
    	
34
    
	
 
    	
10.2
    	
Remedies
    	
35
    
	
 
    	
10.3
    	
Setoff
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
AGENCY
    	
36
    
	
 
    	
11.1
    	
Authorization
    	
36
    
	
 
    	
11.2
    	
Distribution of Payments and Proceeds
    	
36
    
	
 
    	
11.3
    	
Expenses
    	
37
    
	
 
    	
11.4
    	
Payments Received Directly by Banks
    	
37
    
	
 
    	
11.5
    	
Indemnification
    	
38
    
	
 
    	
11.6
    	
Limitations on Agent’s Power
    	
38
    
	
 
    	
11.7
    	
Exculpation of the Agent by the Banks
    	
38
    
	
 
    	
11.8
    	
Agent and Affiliates
    	
39
    
	
 
    	
11.9
    	
Credit Investigation
    	
39
    
	
 
    	
11.10
    	
Resignation
    	
39
    
	
 
    	
11.11
    	
Assignments and Participations
    	
39
    
	
 
    	
11.12
    	
Syndication Agent and Documentation Agent
    	
41
    
	
 
    	
11.13
    	
Delegation of Duties
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
MISCELLANEOUS
    	
41
    
	
 
    	
12.1
    	
365-Day Year
    	
41
    
	
 
    	
12.2
    	
GAAP
    	
42
    
	
 
    	
12.3
    	
No Waiver; Cumulative Remedies
    	
42
    
	
 
    	
12.4
    	
Amendments, Etc
    	
42
    
	
 
    	
12.5
    	
Binding Effect: Assignment
    	
42
    
	
 
    	
12.6
    	
New York Law
    	
42
    
	
 
    	
12.7
    	
Severability of Provisions
    	
42
    
	
 
    	
12.8
    	
Integration
    	
42
    
	
 
    	
12.9
    	
Notice
    	
42
    
	
 
    	
12.10
    	
Indemnification by the Borrower
    	
43
    
	
 
    	
12.11
    	
Customer Identification - USA Patriot Act Notice
    	
44
    
	
 
    	
12.12
    	
Execution in Counterparts
    	
44
    
	
 
    	
12.13
    	
Waiver of Jury Trial
    	
44
    
	
 
    	
12.14
    	
Jurisdiction
    	
44
    
	
 
    	
12.15
    	
Substitution of Currency
    	
45
    
	
 
    	
12.16 
    	
No Fiduciary Relationship
    	
45
    
	
 
    	
12.17 
    	
Waiver of Prior Notice under Existing Credit Agreement
    	
45
    

 

ii

 

Amended and Restated Five Year Credit Agreement
 Dated as of September 28, 2012

 

3M Company, a Delaware corporation, the Banks, as defined below, and JPMorgan Chase Bank, N.A., a national banking association, as Administrative Agent for the Banks, hereby agree as follows:

 

PRELIMINARY STATEMENT.      The Borrower, the lenders party thereto and JPMCB, as administrative agent, are parties to a Five Year Credit Agreement dated as of August 5, 2011 (the “Existing Credit Agreement”).  Subject to the satisfaction of the conditions set forth in Section 7 hereof, the parties hereto agree to amend and restate the Existing Credit Agreement as herein set forth.

 

1.                                      DEFINITIONS

 

1.1                               Generally.

 

“Additional Bank” means a Bank that becomes a party hereto pursuant to Section 2.6 or 2.7.

 

“Advance” means a Revolving Advance, a Swingline Advance, or a Bid Loan.

 

“Affiliate”, as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise.

 

“Agent” means JPMCB, in its capacity as lead arranger and administrative agent for the Banks hereunder (which may act through any of its Affiliates in performance of its duties hereunder.

 

“Agent’s Account” means (a) in the case of Advances denominated in Dollars, the account of the Agent maintained by the Agent at JPMCB at its office at 1111 Fannin Street, 10th Floor, Houston, Texas 77002, Account No. 9008113381H0305, Attention: Maria Saez, (b) in the case of Advances denominated in any Committed Currency, the account of the Agent designated in writing from time to time by the Agent to the Borrower and the Banks for such purpose and (c) in any such case, such other account of the Agent as is designated in writing from time to time by the Agent to the Borrower and the Banks for such purpose.

 

“Aggregate Commitment Amount” means the sum of each Bank’s Commitment.

 

“Aggregate Outstandings” means, at any time, an amount equal to the sum of  (i) the aggregate principal balance of the Revolving Advances then outstanding, (ii) the aggregate principal amount of the Bid Loans then outstanding and (iii) the aggregate principal balance of the Swingline Advances then outstanding.

 

“Agreement” means this Amended and Restated Five Year Credit Agreement.

 

 

“Applicable Fee Percentage” means, as of any date, a percentage per annum determined by reference to the Public Debt Rating in effect on such date as set forth below:

 

	
Public Debt Rating
   S&P/Moody’s
    	
 
    	
Applicable Fee
   Percentage
    
	
Level   1
    AA- / Aa3 or above
    	
 
    	
0.045%
    
	
Level   2
    Lower than Level 1 but at least A / A2
    	
 
    	
0.060%
    
	
Level   3
    Lower than Level 2 but at least A- / A3
    	
 
    	
0.075%
    
	
Level   4
    Lower than Level 3
    	
 
    	
0.100%
    

 

“Applicable Margin” means (a) (i) for LIBO Rate Advances as of any date, a percentage per annum equal to the Market Rate Spread on the Spread Determination Date in relation to such Advances and (b) for Floating Rate Advances as of any date, a rate per annum that is 100 basis points lower than the rate determined in accordance with clause (a) above; provided that in no event shall the Applicable Margin for Floating Rate Advances be lower than 0.00%.

 

“Assignment Certificate” means a certificate, acceptable to the Agent in form and substance, assigning a Bank’s rights and obligations under this Agreement or a related document pursuant to Section 11.11.

 

“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a governmental authority or instrumentality thereof, provided, further, that such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such governmental authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

 

“Banks” means JPMCB, acting on its own behalf and not as Agent; and each other Person (other than the Borrower) that is a party hereto or hereafter becomes a party hereto pursuant to the procedures set forth in Sections 2.6, 2.7 or 11.11.

 

“Base Rate” means a fluctuating interest rate per annum in effect from time to time, which rate per annum shall at all times be equal to the highest of (i) the rate of interest publicly announced by JPMCB, N.A. in New York, New York from time to time as its “prime” rate of interest, (ii) the Federal Funds Rate plus one-half of one percent (.50%) or (iii) the British Bankers Association Interest Settlement Rate applicable to Dollars for a period of one month (“One

 

2

 

Month LIBOR”) plus 1.00% (for the avoidance of doubt, the One Month LIBOR for any day shall be based on the rate appearing on Reuters LIBOR01 Page (or other commercially available source providing such quotations as designated by the Agent from time to time) at approximately 11:00 a.m. London time on such day).

 

“Bid Borrowing” means a borrowing under Section 2.3 consisting of Bid Loans made to the Borrower at the same time by one or more Banks.  All Bid Loans made pursuant to a single Bid Borrowing Request shall constitute a single Bid Borrowing even if such Bid Borrowing Request requested Bid Loan Quotes covering multiple Interest Periods.

 

“Bid Borrowing Request” has the meaning specified in Section 2.3(a).

 

“Bid Loan” means a loan by a Bank pursuant to Section 2.3.

 

“Bid Loan Quote” means an offer by a Bank to make a Bid Loan in accordance with Section 2.3.

 

“Borrower” means 3M Company, a Delaware corporation.

 

“Borrowing” means a borrowing under Section 2.1 consisting of simultaneous pro rata Advances to the Borrower by each of the Banks severally.

 

“Business Day” means a day other than a Saturday, Sunday, United States national holiday or other day on which banks in New York are permitted or required by law to close.  Whenever the context relates to a LIBO Rate, amounts bearing interest at a LIBO Rate, or a Bid Loan, “Business Day” means a day (i) that meets the foregoing definition, and (ii) on which dealings are carried on in the London interbank market and banks are open for business in London and in the country of issue of the currency of such LIBO Rate Advance (or, in the case of an Advance denominated in Euro, on which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open).

 

“Committed Currencies” means Sterling, Euros and any other currency that is freely convertible into Dollars and agreed to by all Banks and the Agent.

 

“Commitment” means, with respect to each Bank, (a) the Dollar amount set forth opposite such Bank’s name on the signature pages hereof or if such Bank is an Additional Bank or if such Bank has entered into an Assignment Certificate, the Dollar amount set forth for such Bank in the records maintained by the Agent, as such amount may be reduced pursuant to Section 6.4 or increased pursuant to Section 2.6, or (b) the commitment of that Bank to make Advances hereunder, as the context may require.

 

“Commitment Termination Date” means September 28, 2017, subject to the extension thereof pursuant to Section 2.7 or, if earlier, the date on which the Banks’ Commitments are terminated pursuant to Section 10 or by agreement of the parties; provided, however, that the Commitment Termination Date of any Bank that is a Non-Consenting Bank to any requested extension pursuant to Section 2.7 shall be the Commitment Termination Date in effect immediately prior to the applicable Extension Date for all purposes of this Agreement.

 

3

 

 

“Committed Outstandings” means, at any time with respect to any Bank, an amount equal to the sum of  (i) the aggregate principal balance of that Bank’s Revolving Advances then outstanding (based on the Equivalent in Dollars at such time), (ii) that Bank’s Percentage of the aggregate principal balance of the Swingline Advances then outstanding.

 

“Credit Exposure” means, with respect to any Bank (i) at any time prior to termination of the Commitments in full, such Bank’s Commitment (whether used or unused); provided that in the case of Section 6.7 when a Defaulting Bank shall exist, “Credit Exposure” shall mean the percentage of the total Commitments (disregarding any Defaulting Bank’s Commitment) represented by such Bank’s Commitment, or (ii) thereafter, such Bank’s Committed Outstandings.

 

“Default” means an event that, with the giving of notice, the passage of time or both, would constitute an Event of Default.

 

“Defaulting Bank” means any Bank that (a) has failed, within two Business Days of the date required to be funded or paid, to (i) fund any portion of its Advances, (ii) fund any portion of its participations in Swingline Advances or (iii) pay over to the Agent, the Swingline Bank or any other Bank any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Bank notifies the Agent in writing that such failure is the result of such Bank’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower, the Agent, the Swingline Bank or any Bank in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Bank’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by the Agent or the Swingline Bank, acting in good faith, to provide a certification in writing from an authorized officer of such Bank that it will comply with its obligations (and is financially able to meet such obligations) to fund prospective Advances and participations in then outstanding Swingline Advances under this Agreement, provided that such Bank shall cease to be a Defaulting Bank pursuant to this clause (c) upon the Agent’s or the Swingline Bank’s receipt of such certification in form and substance satisfactory to it and the Agent, or (d) has become the subject of a Bankruptcy Event.

 

“Dollars” and the “$” sign each means lawful currency of the United States of America.

 

“EBITDA” means, for any period, net income (or net loss) plus the sum of (a) interest expense, (b) income tax expense, (c) depreciation expense and (d) amortization expense, in each case determined in accordance with GAAP for such period.

 

“EBITDA to Interest Ratio” means, as of the last day of any Fiscal Quarter, the ratio of (i) consolidated EBITDA of the Borrower and its subsidiaries for the period of four consecutive Fiscal Quarters then ended to (ii) interest payable on, and amortization of debt discount in respect of, all Funded Debt of the Borrower and its subsidiaries during such period of four Fiscal Quarters.

 

4

 

“Effective Date” means the date on which the conditions precedent set forth in Section 7 have been satisfied, which shall be no later than September 28, 2012.

 

“Eligible Assignee” means (i) any Bank or any Affiliate of any Bank; (ii) a commercial bank organized under the laws of the United States or any state thereof; or (iii) a commercial bank organized under the laws of any other country which is a member of the Organization for Economic Cooperation and Development or a political subdivision of such country;  provided that (x) neither the Borrower nor any Affiliate of the Borrower shall be an Eligible Assignee, (y) any Eligible Assignee or any corporation controlling such Eligible Assignee must also have senior unsecured long-term debt ratings which are rated at least A- (or the equivalent) as publicly announced by S&P or A3 (or the equivalent) as publicly announced by Moody’s or Fitch, and (z) any Eligible Assignee or any corporation controlling such Eligible Assignee must have shareholders’ equity in an amount not less than $3,000,000,000.

 

“Equivalent” in Dollars of any Committed Currency or in any Committed Currency of Dollars on any date, means the quoted spot rate appearing at oanda.com/convert/classic or, if such rate is not available, the rate at which the Agent offers, in accordance with normal banking industry practice, to exchange Dollars or such Committed Currency for such Committed Currency or Dollars, as the case may be, in New York, New York prior to 4:00 P.M. (New York time) on such date.

 

“ERISA” means the Employment Retirement Security Act of 1974, as amended from time to time, and the regulations and rulings issued thereunder.

 

“EURIBO Rate” means, for any Interest Period, the rate appearing on Page 248 of the Moneyline Telerate Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently provided on such page of such Service, as determined by the Agent from time to time for purposes of providing quotations of interest rates applicable to deposits in Euro by reference to the Banking Federation of the European Union Settlement Rates for deposits in Euro) at approximately 10:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for deposits in Euro with a maturity comparable to such Interest Period; provided, however, that if such page is no longer available, the EURIBO Rate shall be determined by the Agent on the basis of a substantially comparable source of the Agent’s selection and acceptable to the Banks, for the number of days comprised therein and in an amount equal or comparable to the amount of the LIBO Rate Advance of the Agent (in its individual capacity) to be outstanding during such Interest Period.

 

“Euro” means the lawful currency of the European Union as constituted by the Treaty of Rome which established the European Community, as such treaty may be amended from time to time and as referred to in the EMU legislation.

 

“Event of Default” means an event specified in Section 10.1.

 

“Existing Credit Agreement” has the meaning specified in the preliminary statement to this Agreement.

 

5

 

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the Agent from three federal funds brokers of recognized standing selected by it.

 

“Fee Letter” means one or more separate agreements between the Borrower and the Agent, setting forth the terms of certain fees to be paid by the Borrower to the Agent for the benefit of the Banks and/or for the Agent’s own behalf, as more fully set forth therein.

 

“Fiscal Quarter” means any of the four periods, each approximately three calendar months in length, comprising the Borrower’s fiscal year.

 

“Fitch” means Fitch, Inc.

 

“Floating Rate” means, for any period, a fluctuating interest rate per annum equal for each such day during such period to the sum of the Base Rate for such day, plus the Applicable Margin for such day.

 

“Funded Debt” means the sum of (i) all obligations of the Borrower and its subsidiaries for borrowed money, including but not limited to principal and interest with respect to all indebtedness hereunder and all other senior or subordinated debt for borrowed money, (ii) all purchase money obligations of the Borrower and its subsidiaries, including obligations under any capitalized lease, (iii) the face amount of all letters of credit issued for the account of the Borrower and its subsidiaries, and (iv) all other interest-bearing obligations of the Borrower and its subsidiaries that are required to be listed as a liability on a balance sheet under GAAP. All determinations under this definition shall be made with respect to the Borrower and its subsidiaries on a consolidated basis.

 

“GAAP” has the meaning set forth in Section 12.2.

 

“Interest Period” means (i) with respect to any Bid Borrowing, a period of not more than 30 days, as elected by the Borrower in the applicable Bid Borrowing Request, and (ii) for each LIBO Rate Advance comprising part of the same Borrowing, the period commencing on the date of such LIBO Rate Advance or the date of the Conversion of any Floating Rate Advance into such LIBO Rate Advance and ending on the last day of the period selected by the Borrower pursuant to the provisions of Section 5.2 and, thereafter, with respect to Eurodollar Rate Advances, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions of Section 5.2.  The duration of each such Interest Period shall be one, two, three or six months, and subject to clause (c) of this definition, nine months, as the Borrower may, upon notice received by the Agent (and in the case of a LIBO Rate Advance denominated in a Committed Currency, to the London Sub-Agent) not later than 11:00 a.m. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided, however, that:

 

6

 

(a)          the Borrower may not select any Interest Period that ends after the Commitment Termination Date unless, after giving effect to any reduction of the Commitments on such Commitment Termination Date, the aggregate principal amount of Floating Rate Advances and of LIBO Rate Advances having an Interest Period that end on or prior to such Commitment Termination Date shall be at least equal to the aggregate principal amount of Advances due and payable on or prior to such date;

 

(b)          Interest Periods commencing on the same date for LIBO Rate Advances comprising part of the same Borrowing shall be of the same duration;

 

(c)          the Borrower shall not be entitled to select an Interest Period having duration of nine months unless, by 2:00 P.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, each Bank notifies the Agent that such Bank will be providing funding for such Revolving Borrowing with such Interest Period (the failure of any Bank to so respond by such time being deemed for all purposes of this Agreement as an objection by such Bank to the requested duration of such Interest Period); provided that, if any or all of the Banks object to the requested duration of such Interest Period, the duration of the Interest Period for such Borrowing shall be one, two, three or six months, as specified by the Borrower requesting such Revolving Borrowing in the applicable Notice of Borrowing as the desired alternative to an Interest Period of nine months;

 

(d)          whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, however, that, if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and

 

(e)          whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month.

 

“JPMCB” means JPMorgan Chase Bank, N.A., a national banking association.

 

“LIBO Base Rate” means, with respect to any Interest Period for each LIBO Rate Advance comprising part of the same Revolving Borrowing, (a) in the case of any Revolving Credit Advance denominated in Dollars or any Committed Currency other than Euro, the rate per annum which appears on Reuters Screen LIBOR01 Page (or any successor page) as the London interbank offered rate for deposits in Dollars or the applicable Committed Currency at approximately 11:00 a.m. London time on the date two Business Days before, or, in the case of LIBO Rate Advances denominated in Sterling, on the date of, the commencement of such Interest Period as the rate at which deposits in immediately available funds are offered on the London interbank market for a term substantially equivalent to the applicable Interest Period; provided, however, that if such page is no longer available, the LIBO Base Rate shall be

 

7

 

determined by the Agent on the basis of a substantially comparable source of the Agent’s selection and acceptable to the Banks, for the number of days comprised therein and in an amount equal or comparable to the amount of the LIBO Rate Advance of the Agent (in its individual capacity) to be outstanding during such Interest Period or (b) in the case of any LIBO Rate Advance denominated in Euros, the EURIBO Rate.

 

“LIBO Rate” means the annual rate equal to the sum of (i) the rate obtained by dividing (a) the applicable LIBO Base Rate, by (b) a percentage equal to 100% minus the Federal Reserve System requirement (expressed as a percentage) applicable to such deposits, and (ii) the Applicable Margin.

 

“Loan Documents” means this Agreement, the Revolving Notes, any Fee Letters and any other document related hereto, together with all amendments, modifications and restatements thereof.

 

“London Sub-Agent” means J.P. Morgan Europe Limited.

 

“Market Rate Spread” means a rate per annum equal to the credit default swap mid-rate spread of the Borrower interpolated from the applicable Spread Determination Date to the latest Termination Date then in effect (or, if the period from such Spread Determination Date to the latest Termination Date then in effect is less than one year, then the one-year credit default swap mid-rate spread of the Borrower), in each case determined as of the close of business, New York time, on the applicable Spread Determination Date and based on the credit default swap mid-rate spreads specified by Markit Group Ltd. or any successor, subject to a minimum rate and a maximum rate as determined by reference to the Public Debt Rating in effect on such date as set forth  below:

 

	
Public   Debt Rating
   S&P/Moody’s
    	
 
    	
Minimum   Rate
    	
 
    	
Maximum   Rate
    
	
Level   1
    AA- / Aa3 or above
    	
 
    	
0.100%
    	
 
    	
0.750%
    
	
Level   2
    Lower than Level 1 but at least A / A2
    	
 
    	
0.200%
    	
 
    	
0.875%
    
	
Level   3
    Lower than Level 2 but at least A- / A3
    	
 
    	
0.250%
    	
 
    	
1.000%
    
	
Level   4
    Lower than Level 3
    	
 
    	
0.300%
    	
 
    	
1.125%
    

 

If the Borrower’s interpolated credit default swap spread, or one-year credit default swap spread, as the case may be, as specified by Markit Group Ltd. (or any successor) is unavailable, the Borrower and the Banks shall negotiate in good faith (for a period of up to thirty days after such spread becomes unavailable (such thirty-day period, the “Negotiation Period”)) to agree on an alternative method for establishing the Applicable Margin.  The Applicable Margin at any determination date thereof which falls during the Negotiation Period shall be based upon the then most recently available quote of the Market Rate Spread.  If no such alternative method is agreed upon during the Negotiation Period, the Applicable Margin at any determination date subsequent to the end of the Negotiation Period shall be a rate per annum equal to the maximum rate

 

8

 

applicable from time to time as determined in the immediately preceding paragraph.  If the Borrower ‘s interpolated credit default swap spread or one-year credit default swap spread, as the case may be, again becomes available through Markit Group Ltd. (or any successor), then Market Rate Spread shall be determined on the basis of such credit default swap spread as set forth above.

 

“Moody’s” means Moody’s Investors Service, Inc.

 

“Non-Consenting Bank” has the meaning specified in Section 2.7.

 

“Obligations” means, collectively, the Advances and the Borrower’s obligation to repay Bid Loans.

 

“Payment Office” means, for any Committed Currency, such office of JPMCB as shall be from time to time selected by the Agent and notified by the Agent to the Borrower and the Banks.

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Percentage” means, with respect to each Bank, the ratio of (i) that Bank’s Credit Exposure, to (ii) the aggregate Credit Exposure of all of the Banks.

 

“Person” means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“Public Debt Rating” means, as of any date, the rating that has been most recently announced by either S&P or Moody’s, as the case may be, for any class of non-credit enhanced long-term senior unsecured debt issued by the Borrower.  For purposes of the foregoing, (a) if only one of S&P and Moody’s shall have in effect a Public Debt Rating, the Applicable Margin and the Applicable Fee Percentage shall be determined by reference to the available rating; (b) if neither S&P nor Moody’s shall have in effect a Public Debt Rating, the Applicable Margin and the Applicable Fee Percentage will be set in accordance with Level 4 under the definition of “Applicable Margin” or “Applicable Fee Percentage”, as the case may be; (c) if the ratings established by S&P and Moody’s shall fall within different but adjacent levels, the Applicable Margin shall be based upon the higher rating; (d) if the ratings established by S&P and Moody’s shall fall within different levels that are not adjacent, the Applicable Margin shall be determined by the level immediately above the lower rating; (e) if any rating established by S&P or Moody’s shall be changed, such change shall be effective as of the date on which such change is first announced publicly by the rating agency making such change; and (f) if S&P or Moody’s shall change the basis on which ratings are established, each reference to the Public Debt Rating announced by S&P or Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as the case may be.

 

“Required Banks” means one or more Banks having an aggregate Percentage of at least fifty-one percent (51%).

 

“Revolving Advance” means an advance under Section 2.1.

 

9

 

“Revolving Borrowing Minimum” means, in respect of Revolving Advances denominated in Dollars, $10,000,000, in respect of Revolving Advances denominated in Sterling, £5,000,000 and, in respect of Revolving Advances denominated in Euros, €10,000,000.

 

“Revolving Note” means a note in substantially the form of Exhibit C hereto with all blanks appropriately completed, together with any modifications and extensions thereof and any note or notes issues in renewal thereof or substitution or replacement therefor.

 

“S&P” means Standard & Poor’s Rating Group, a division of The McGraw-Hill Companies, Inc.

 

“Securitization Entity” means a corporation, partnership, trust, limited liability company or other entity that is formed for the purpose of effecting or facilitating a Securitization Transaction and which engages in no business and incurs no indebtedness or other liabilities other than those related to or incidental to a Securitization Transaction.

 

“Securitization Transaction” means a transaction or series of related transactions pursuant to which a corporation, partnership, trust, limited liability company or other entity incurs obligations or issues interests, the proceeds of which are used to finance a discrete pool (which may be fixed or revolving) of receivables or other financial assets.

 

“Spread Determination Date” means, at any time, (a) for any LIBO Rate Advance, (i) the date that is two Business Days before the commencement of the Interest Period applicable to such Advance and (ii) in the case of an Interest Period of more than three months’ duration, the date that is the last Business Day of each successive three-month period during such Interest Period, and (b) for any Floating Rate Advance, (i) the Effective Date and (ii) the first day (or if such day is not a Business Day, the immediately preceding Business Day) of each calendar quarter after the Effective Date.

 

“Sterling” means lawful currency of the United Kingdom of Great Britain and Northern Ireland.

 

“Swingline Advance” has the meaning set forth in Section 2.2.

 

“Swingline Bank” means JPMCB, in its capacity as the Bank making Swingline Advances under Section 2.2, and any successor in such capacity.

 

“Swingline Commitment” means the Swingline Bank’s obligation to make Swingline Advances pursuant to Section 2.2.

 

“Swingline Commitment Amount” means, at any time, the lesser of (i) $50,000,000, or (ii) the excess, if any, of the Aggregate Commitment Amount over the Aggregate Outstandings at such time.

 

1.2                               Times

 

All references to times of day in this Agreement shall be references to New York, New York time unless otherwise specifically provided.

 

10

 

2.                                      LINE OF CREDIT

 

2.1                               Revolving Advances.

 

Each Bank severally agrees, on the terms and conditions hereinafter set forth, to make Advances (each, a “Revolving Advance”) to the Borrower from time to time on any Business Day during the period from the Effective Date until the Commitment Termination Date applicable to such Bank in accordance with this Section 2.1; provided, however, that no Bank shall have any obligation to make any Revolving Advance if, after giving effect to such Advance, (i) that Bank’s Committed Outstandings (based in respect of any Revolving Advances to be denominated in a Committed Currency by reference to the Equivalent thereof in Dollars determined on the date of delivery of the applicable request for such Revolving Borrowing) would exceed that Bank’s Commitment, or (ii) the Aggregate Outstandings (based in respect of any Revolving Credit Advances to be denominated in a Committed Currency by reference to the Equivalent thereof in Dollars determined on the date of delivery of the applicable request for such Revolving Borrowing) would exceed the Aggregate Commitment Amount.  The credit facility established hereby is revolving; subject to the terms and conditions of this Agreement, the Borrower may borrow, prepay pursuant to Section 6.3 and reborrow under this Section 2.1.  The obligations of the Banks hereunder shall be several, but not joint.

 

2.2                               Swingline Advances.

 

In order to accommodate the Borrower’s need for short-term revolving credit, the Swingline Bank agrees to make advances on the terms and subject to the conditions set forth in this Section (each a “Swingline Advance”).

 

(a)                                 Swingline Advances shall be available during the period from the date of this Agreement through and including the Commitment Termination Date applicable to the Swingline Bank.  Each Swingline Advance shall be denominated in Dollars.

 

(b)                                 The Swingline Bank shall have no obligation to make any Swingline Advance if, after giving effect to such Swingline Advance, (i) the aggregate amount of Swingline Advances then outstanding would exceed the Swingline Commitment Amount, (ii) the Aggregate Outstandings would exceed the Aggregate Commitment Amount, or (iii) the Aggregate Outstandings would exceed the commitments of the Banks having a Commitment Termination Date that is less than ten Business Days after the date of such Swingline Advance.

 

(c)                                  Each Swingline Advance shall occur following written or telephonic request to the Swingline Bank from any person purporting to be authorized to request Advances on behalf of the Borrower.  Each such notice or request must be received by the Swingline Bank no later than 1:00 p.m. on the Business Day on which the Swingline Advance is to occur and shall specify (i) that the Borrower is requesting a Swingline Advance, and (ii) the amount thereof.  Prior to the close of business on the day it receives the notice or request, the Swingline Bank shall disburse the Swingline Advance by crediting the same to the Borrower’s demand deposit account maintained with the Agent or in such other manner as the

 

11

 

Swingline Bank and the Borrower may from time to time agree in writing.  The Swingline Bank shall have no obligation to, and shall not, disburse any Swingline Advance if any condition set forth in Section 2.5 has not been satisfied on the day of the requested Swingline Advance.  Each Swingline Advance shall be in the amount of $10,000,000 or more.

 

(d)                                 Each Swingline Advance shall bear interest at an annual rate equal to the Floating Rate.  Interest on the Swingline Advance shall be payable in arrears on the last day of each March, June, September and December, and on the final Commitment Termination Date.

 

(e)                                  [Reserved].

 

(f)                                   The Borrower shall repay the principal of the Swingline Advances in full not less frequently than once every ten Business Days, and upon such repayment in full, shall not request another Swingline Advance for at least one full Business Day.  The Borrower may use the proceeds of an Advance made pursuant to Section 2.1 to repay any Swingline Advance.

 

(g)                                  The Swingline Bank may at any time and from time to time (whether before or after the occurrence of an Event of Default), by notice to the Agent not later than 1:00 p.m. on any Business Day, request that the Banks make Revolving Advances in an aggregate principal amount equal to the then-outstanding principal amount of the Swingline Advances.  Upon receiving such notice and request, and in any event not later than 2:00 p.m. on the date of the notice and request, the Agent shall notify each Bank of the amount of the requested Borrowing, that the proceeds of the Borrowing are to be used to repay a Swingline Advance and of the amount of each Bank’s Advance with respect thereto.  Unless one of the events described in Section 10.1(j) shall have occurred, so long as a Bank receives such notice from the Agent prior to 2:00 p.m. on the date the requested Borrowing is to occur, each Bank shall make its Advance with respect to that Borrowing available to the Agent by wire transfer of immediately available funds to the Agent not later than 3:00 p.m. on the same day.  Prior to the close of business on the same day, the Agent will disburse the Borrowing by crediting the same to the account of the Swingline Bank.  Any Advances made by Banks pursuant to this Section 2.2(g) shall initially bear interest at the Base Rate, but the rate of interest that applies to such Advances may be converted pursuant to Section 5.2, and such Advances shall in all other respects be treated in the same manner as Advances made pursuant to Section 2.1.

 

(h)                                 The Borrower may prepay any Swingline Advance on the Business Day it is made or on any subsequent Business Day; provided, however, that each such partial prepayment shall be in the principal amount of $10,000,000 or more.

 

(i)                                     In the event that one of the events of default described in Section 10.1(j) shall have occurred, the Agent shall immediately notify the Swingline Bank and the Banks, and, if any Swingline Advances or interest thereon is outstanding on such

 

12

 

day it receives notice, each Bank will purchase from the Swingline Bank an undivided participation interest in the Swingline Advance and interest thereon in an amount equal to its Percentage of such Swingline Advance.  Upon request, each Bank will promptly transfer to the Swingline Bank, in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Bank will deliver to such Bank a loan participation certificate, dated the date of receipt of such funds and in such amount.  Thereafter, the Swingline Bank shall make no further Swingline Advances, any payments received directly by the Swingline Bank with respect to the Swingline Advances shall be treated as excess payments subject to Section 11.4, and all other payments made by the Borrower shall be applied in the manner required by Section 11.2.

 

(j)                                    Each Bank’s obligation to make a Revolving Advance under paragraph (g) or to purchase a participation in a Swingline Advance under paragraph (i) shall be absolute and unconditional, and shall not be affected by any circumstance, including but not limited to (i) any setoff, counterclaim, recoupment, defense or other right that such Bank or any other Person may have against the Swingline Bank, (ii) the occurrence or continuance of a Default or Event of Default or the termination of the Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any other Person, (iv) any breach of this Agreement by the Borrower or any other Bank, or (v) any other circumstance, happening or event whatsoever, whether or not similar to the foregoing.

 

(k)                                 Any Swingline Advances that are outstanding on the Commitment Termination Date shall be paid in full on such date, with all accrued interest.

 

2.3                               Bid Borrowings.

 

(a)                                 The Borrower may from time to time deliver to the Agent a request (a “Bid Borrowing Request”) that the Agent solicit offers to make Bid Loans denominated in Dollars from the Banks.  Each such request shall be made no later than 10:00 a.m. on the fourth Business Day before the day of the proposed Bid Borrowing.  Each such request shall state (i) the day of the proposed Bid Borrowing (which day shall be a Business Day), (ii) the aggregate amount of the proposed Bid Borrowing, and (iii) the Interest Period or Interest Periods with respect to such Bid Borrowing (and, if more than one Interest Period is to be applicable, the duration of each such Interest Period and the portion of the Bid Borrowing that will be subject to each such Interest Period).  Each Bid Borrowing request shall be in an amount equal to an integral multiple of $10,000,000.  The Borrower may not request any Bid Borrowing hereunder if (i) the Borrower has made such a request within the preceding 5 Business Days, (ii) the making of the proposed Bid Borrowing would cause more than 3 Bid Borrowings to be outstanding at any one time, (iii) the making of the proposed Bid Borrowing would cause the aggregate principal amount of Bid Borrowings to exceed $100,000,000, or (iv) the making of the proposed Bid Borrowing would cause the Aggregate Outstandings to exceed the Aggregate Commitment Amount.

 

13

 

(b)                                 Promptly following receipt of any Bid Borrowing Request, the Agent shall notify each Bank of the details thereof by telecopy.

 

(c)                                  Each Bank may (but shall have no obligation to) deliver to the Agent a Bid Loan Quote with respect to any Bid Borrowing Request.  The Agent may reject any Bid Loan Quote received after 9:00 a.m. on the third Business Day preceding the proposed Bid Borrowing; provided, however, that no Bid Loan Quote by JPMCB, in its capacity as a Bank, shall be effective if delivered to the Agent after 8:45 a.m. on the third Business Day preceding the proposed Bid Borrowing.  Each Bid Loan Quote shall specify the name of the offering Bank, the date of the proposed Bid Loan, the principal amount of the Bid Loan that the offering Bank proposes to make, and the rate of interest per annum (adjusted to the nearest 1/100th of 1%) to be applicable to the proposed Bid Loan.  The Agent shall ignore any Bid Loan Quote that (i) fails to include all of the information required under this paragraph, (ii) contains qualifying, conditional or similar language; (iii) proposes terms other than or in addition to those set forth in the applicable Bid Borrowing Request, or (iv) arrives after the time required above.

 

(d)                                 The Agent shall notify the Borrower of the terms of any Bid Loan Quote submitted by a Bank that meets the requirements set forth above.  Such notice shall include (i) the aggregate principal amount of Bid Loans for which Bid Loan Quotes have been received for each Interest Period specified in the Bid Borrowing Request, (ii) the respective principal amounts and interest rates so offered, and (iii) if applicable, limitations on the aggregate principal amount of Bid Loans for which offers in any single Bid Loan Quote may be accepted.  Such notification shall be delivered (x) on the day of receipt, if the Bid Loan Quote is submitted prior to the third Business Day preceding the proposed Bid Borrowing, or (y) no later than 9:30 a.m. on the day of receipt, if the Bid Loan Quote is submitted on the third Business Day preceding the proposed Bid Borrowing.

 

(e)                                  Not later than 10:00 a.m. on the third Business Day preceding any Bid Borrowing, the Borrower shall notify the Agent in writing or telephonically of its acceptance or rejection of the Bid Loan Quotes.  If the Borrower fails to notify the Agent by such time, the Borrower shall be deemed to have rejected each of the Bid Loan Quotes.  The Borrower’s acceptance of any Bid Loan Quotes shall specify the aggregate principal amount of offers for each Interest Period that the Borrower accepts.  The Borrower may accept any Bid Loan Quote in whole or in part, provided, however, that:

 

(i)                                     the principal amount of any portion of a Bid Borrowing subject to any given Interest Period may not exceed the corresponding portion specified in the related Bid Borrowing Request;

 

(ii)                                  the principal amount of each Bid Borrowing (as to all Interest Periods combined) must be equal to an integral multiple of $10,000,000;

 

14

 

(iii)                               acceptance of Bid Loan Quotes may only be made on the basis of ascending interest rates within each Interest Period; and

 

(iv)                              the Borrower may not accept any Bid Loan Quote that fails to comply with the requirements of this Agreement.

 

(f)                                   If Bid Loan Quotes with the same interest rates with respect to any given Interest Period are submitted by two or more Banks in an aggregate amount greater than that necessary to satisfy the corresponding Bid Borrowing Request, the principal amount of Bid Loans in respect of which such offers are accepted shall be allocated by the Agent among such Banks as nearly as possible (in such amounts not less than $1,000,000 as the Agent may deem appropriate) in proportion to the aggregate principal amounts of such offers. Absent manifest error, the determination by the Agent of the amount of the Bid Loans accepted with respect to each Bank shall be final.

 

(g)                                  The Agent shall promptly notify each Bank having submitted a Bid Loan Quote if its offer has been accepted and, if so, of the amount of the Bid Loan or Bid Loans to be made by it on the date of the applicable Bid Borrowing.  Each Bank so notified that its Bid Loan Quote has been accepted shall remit the amount of its accepted Bid Loan Quote to the Agent in immediately available funds no later than 2:00 p.m. on the date of such Bid Borrowing.  Prior to the close of business on the day of the requested Bid Borrowing, the Agent shall disburse such funds by crediting the same to the Borrower’s demand deposit account maintained with the Agent or in such other manner as the Agent and the Borrower may from time to time agree.  The Agent shall have no obligation (i) to disburse the requested Bid Borrowing if any condition set forth in Section 2.5 has not been satisfied on the day of the requested Bid Borrowing, or (ii) to disburse any portion of a Bid Borrowing for which the Agent has failed to receive funds from the applicable Bank by the time specified above.

 

(h)                                 The Borrower’s obligation to repay each Bid Loan shall be evidenced by one or more accounts or records maintained by the Bank making such Bid Loan in the ordinary course of business.

 

(i)                                     The Borrower and the Banks shall from time submit to the Agent such information as the Agent may reasonably request regarding outstanding Bid Loans, including the amounts, interest rates, dates of Borrowing and maturities thereof, for the purpose of allocating amounts received from the Borrower with respect thereto.

 

(j)                                    Nothing hereunder shall obligate any Bank, or the Banks collectively, to submit any Bid Loan Quotes in response to a Bid Borrowing Request, nor shall any provision hereunder obligate the Borrower to accept any one or more Bid Loan Quotes.

 

15

 

 

2.4                               Reserved.

 

2.5                               Conditions Precedent to Each Advance.

 

The obligation of each Bank to make any Advance hereunder shall be subject to the satisfaction of the following conditions precedent (and any request for an Advance shall be deemed a representation and warranty by the Borrower that each of the following conditions precedent have been satisfied):

 

(a)                                 the Borrower has delivered to the Agent and the Banks each of the items required to be delivered pursuant to Section 7;

 

(b)                                 the representations and warranties of the Borrower contained in this Agreement (other than the representations and warranties listed as “Material Adverse Effect”, “Litigation” and “Environmental Matters” on Exhibit B) shall be true and correct on the date of such Advance as though made on and as of such date (except to the extent that any such representation or warranty is expressly stated to have been made as of a specific date, then such representation or warranty shall be true and correct as of such specific date); and

 

(c)                                  no Default or Event of Default exists.

 

2.6                               Increase of Commitments.

 

(a)                                 So long as no Event of Default has occurred and is continuing, the Borrower may from time to time, upon at least 10 days’ written notice to the Agent (who shall promptly provide a copy of such notice to each Bank), propose to increase the Aggregate Commitment Amount by increments of $25,000,000, to an amount not to exceed $2,000,000,000 (the amount of any such increase, the “Additional Commitment Amount”).  Each Bank may, not more than 10 Business Days following receipt of such notice, elect by written notice to the Borrower and the Agent to increase its Commitment by a principal amount equal to its Percentage of the Additional Commitment Amount.  No Bank (or any successor thereto) shall have any obligation to increase its Commitment or its other obligations under this Agreement and the other Loan Documents, and any decision by a Bank to increase its Commitment shall be made in its sole discretion independently from any other Bank.  Any Bank that does not respond to a request to increase its Commitment hereunder shall be deemed to have declined such request.

 

(b)                                 If any Bank shall not elect to increase its Commitment pursuant to paragraph (a), the Borrower may designate another bank or other financial institution (which may be, but need not be, one or more of the existing Banks) which at the time agrees to, in the case of any such Person that is an existing Bank, increase its Commitment and in the case of any other such Person (each such Person, and each Person that shall accept an assignment as provided in Section 2.7 is an “Additional Bank”), become a party to this Agreement; provided, however, that any new bank or financial institution must meet the criteria for an Eligible Assignee and must in all other respects be acceptable to the Agent and the

 

16

 

Swingline Bank, which acceptance will not be unreasonably withheld or delayed.  The sum of the increases in the Commitments of the existing Banks pursuant to this paragraph (b) plus the Commitments of the Additional Banks shall not in the aggregate exceed the unsubscribed amount of the Additional Commitment Amount.

 

(c)                                  An increase in the aggregate amount of the Aggregate Commitment Amount pursuant to this Section 2.6 shall become effective upon the receipt by the Agent of an agreement in form and substance satisfactory to the Agent signed by the Borrower, by each Additional Bank and by each other Bank whose Aggregate Commitment Amount is to be increased, setting forth the new Commitments of such Banks and setting forth the agreement of each Additional Bank to become a party to this Agreement and to be bound by all the terms and provisions hereof, and such evidence of appropriate corporate authorization on the part of the Borrower with respect to the increase in the Commitments and such opinions of counsel for the Borrower with respect to the increase in the Aggregate Commitment Amount as the Agent may reasonably request.

 

(d)                                 Upon the acceptance of any such agreement by the Agent, the Aggregate Commitment Amount shall automatically be increased by the amount of the Commitments added through such agreement.

 

(e)                                  Upon any increase in the aggregate amount of the Commitments pursuant to this Section 2.6 that is not pro rata among all Banks, within five (5) Business Days, in the case of any Revolving Advances bearing interest at the Floating Rate, and at the end of the then current Interest Period with respect thereto, in the case of any Revolving Advances bearing interest at a LIBO Rate, the Borrower shall prepay such Advances in their entirety and, to the extent the Borrower elect to do so and subject to the conditions specified in Section 2.5, the Borrower shall reborrow Revolving Advances from the Banks in proportion to their respective Commitments after giving effect to such increase, until such time as all outstanding Revolving Advances are held by the Banks in such proportion.

 

2.7                               Extension of Commitment Termination Date.

 

(a)                                 So long as no Event of Default has occurred and is continuing, the Borrower may, upon at least 45 days and not more than 60 days prior to the first and/or second anniversary of the date hereof, by written notice to the Agent (who shall promptly provide a copy of such notice to each Bank), propose to extend the Commitment Termination Date by one year.  Each Bank may, not more than 30 days nor less than 20 days prior to such anniversary date, elect by written notice to the Borrower and the Agent to extend its Commitment Termination Date by a period of one year.  The Agent will notify the Borrower, in writing of the Banks’ decisions no later than 15 days prior to such anniversary date.  No Bank (or any successor thereto) shall have any obligation to extend its Commitment Termination Date, and any decision by a Bank to extend its Commitment Termination Date shall be made in its sole discretion independently from any

 

17

 

other Bank.  Any Bank that does not respond to a request to extend the Commitment Termination Date shall be deemed to be a Non-Consenting Bank.

 

(b)                                 If any Bank shall not elect to extend its Commitment Termination Date pursuant to paragraph (a) (each such Bank being a “Non-Consenting Bank”), the Borrower may designate another bank or other financial institution (which may be, but need not be, one or more of the existing Banks) which at the time agrees to accept an assignment of the Commitment of the Non-Consenting Bank in accordance with Section 11.11; provided, however, that (i) any Additional Bank must meet the criteria for an Eligible Assignee and must in all other respects be acceptable to the Agent and the Swingline Bank, which acceptance will not be unreasonably withheld or delayed; (ii) the amount of the Commitment of any such Additional Bank as a result of such substitution shall in no event be less than $5,000,000 unless the amount of the Commitment of such Non-Consenting Bank is less than $5,000,000, in which case such Additional Bank shall assume all of such lesser amount; (iii) any such Non-Consenting Bank shall have been paid (A) the aggregate principal amount of, and any interest accrued and unpaid to the effective date of the assignment on, the outstanding Advances, if any, of such Non-Consenting Bank plus (B) any accrued but unpaid commitment fees owing to such Non-Consenting Bank as of the effective date of such assignment; (iv) all additional costs reimbursements, expense reimbursements and indemnities payable to such Non-Consenting Bank, and all other accrued and unpaid amounts owing to such Non-Consenting Bank hereunder, as of the effective date of such assignment shall have been paid to such Non-Consenting Bank; and (v) with respect to any such Additional Bank, the applicable processing and recordation fee required under Section 11.11 for such assignment shall have been paid.  To the extent that the Commitment Termination Date is not extended as to any Bank pursuant to this Section 2.7 and the Commitment of such Bank is not assumed in accordance with this subsection (b), the Commitment of such Non-Consenting Bank shall automatically terminate in whole on such unextended Commitment Termination Date without any further notice or other action by the Borrower, such Bank or any other Person; provided that such Non-Consenting Bank’s rights under Sections 4.3, 5.4, 6.5 and 12.10, and its obligations under Section 11.5, shall survive the Commitment Termination Date for such Bank as to matters occurring prior to such date.

 

(c)                                  If (after giving effect to any assignments pursuant to subsection (b) of this Section 2.7) Banks having Commitments equal to at least 50% of the Commitments in effect immediately prior to the applicable anniversary date consent in writing to a requested extension (whether by execution or delivery of an Assignment Certificate or otherwise) not later than one Business Day prior to such anniversary date, the Agent shall so notify the Borrower, and the Commitment Termination Date then in effect shall be extended for the additional one-year period as described in subsection (a) of this Section 2.7, and all references in this Agreement, and in the Revolving Notes to the “Commitment Termination Date” shall, with respect to each Bank other than a Non-Consenting Bank for such extension, refer to the Commitment Termination Date as so

 

18

 

extended.  Promptly following each extension of the Commitment Termination Date, the Agent shall notify the Banks of the extension of the scheduled Commitment Termination Date in effect immediately prior thereto.

 

2.8                               Evidence of Debt.

 

(a)                                 Each Bank shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Bank resulting from each Revolving Advance owing to such Bank from time to time, including the amounts of principal and interest payable and paid to such Bank from time to time hereunder in respect of Revolving Advances.  The Borrower agrees that upon notice by any Bank to the Borrower (with a copy of such notice to the Agent) to the effect that a Revolving Note is required or appropriate in order for such Bank to evidence (whether for purposes of pledge, enforcement or otherwise) the Revolving Advances owing to, or to be made by, such Bank, the Borrower shall promptly execute and deliver to such Bank a Revolving Note payable to the order of such Bank in a principal amount up to the Commitment of such Bank.

 

(b)                                 The Agent shall maintain a control account, and a subsidiary account for each Bank, in which accounts (taken together) shall be recorded (i) the date and amount of each Borrowing made hereunder, the type of Advances comprising such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each Assignment Certificate delivered to and accepted by it, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Bank hereunder and (iv) the amount of any sum received by the Agent from the Borrower hereunder and each Bank’s share thereof.

 

(c)                                  Entries made in good faith and in conformity with sound industry standards by the Agent in the control and subsidiary accounts pursuant to subsection (b) above shall be prima  facie evidence of the amount of principal and interest due and payable or to become due and payable from the Borrower to each Bank under this Agreement, absent manifest error; provided, however, that the Borrower shall have the right to inspect such entries and the failure of the Agent to make an entry, or any finding that an entry is incorrect, in such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement.

 

3.                                      [Reserved]

 

4.                                      FEES AND EXPENSES

 

4.1                              Commitment Fee.

 

The Borrower will pay each Bank a commitment fee on the aggregate amount of such Bank’s unused Commitment from the date of this Agreement through the Commitment Termination Date applicable to such Bank at a rate per annum equal to the Applicable Fee Percentage.  Each

 

19

 

Bank’s unused Commitment shall be determined by deducting from such Commitment the aggregate principal balance of such Bank’s Revolving Advances.  Such fee shall be due and payable quarterly in arrears on the last day of each March, June, September and December and on the final Commitment Termination Date.

 

4.2                               Reserved.

 

4.3                               Expenses.

 

The Borrower shall pay (i) all reasonable attorneys’ fees and out-of-pocket expenses of such attorneys incurred by the Agent in connection with the preparation, negotiation, execution and amendment of this Agreement and related documents and (ii) all costs and expenses (including but not limited to reasonable attorneys’ fees and out-of-pocket expenses) incurred by the Agent or any of the Banks in connection with the enforcement of this Agreement and related documents (including but not limited to reasonable attorneys’ fees and out-of-pocket expenses of the Agent and each Bank, whether paid to outside counsel or allocated to in-house counsel).

 

4.4                               Additional Fees.

 

The Borrower shall pay to the Agent additional fees in the amounts set forth in any Fee Letter strictly pertaining to this Agreement.

 

5.                                      INTEREST

 

5.1                               Floating Rate.

 

The principal balance of the Revolving Advances shall bear interest at the Floating Rate unless the Borrower elects a LIBO Rate pursuant to Section 5.2, subject, however, to imposition of the default rate pursuant to Section 5.3.

 

5.2                               LIBO Rate.

 

The Borrower may from time to time notify the Agent in writing or by telephone that a particular portion of the outstanding principal balance of the Revolving Advances shall bear interest at a LIBO Rate for a particular Interest Period.  The portion of the outstanding balance of the Revolving Advances to which a LIBO Rate is applied (i) must be in an amount not less than the Revolving Borrowing Minimum or a multiple thereof, and (ii) must not bear, or otherwise be scheduled to bear, interest at a LIBO Rate at any time during the applicable Interest Period.  Any LIBO Rate notification shall be irrevocable, must be made pro rata with respect to the Revolving Advances of each Bank, and must be received by the Agent before 11:00 a.m. on the day three Business Days before the Business Day which is the first day of the applicable Interest Period.  Commencing on the first day of the applicable Interest Period and continuing through the last day thereof, the portion of the outstanding principal balance of the Revolving Advances to which the notification related shall bear interest at the applicable LIBO Rate (and the remaining part of the principal balance of the Revolving Advances, if any, shall continue to bear interest at the rate or rates previously applicable to such amounts), subject, however, to imposition of the default rate pursuant to Section 5.3.  At the termination of such Interest Period, unless a new LIBO Rate notification is requested and accepted by the Borrower, the interest rate applicable to the portion

 

20

 

of the principal balance of (1) the Revolving Advances denominated in Dollars to which the LIBO Rate was applicable shall revert to the Floating Rate and (2) the Revolving Advances denominated in any Committed Currency shall be exchanged for an Equivalent amount of Dollars determined on such date and revert to the Floating Rate.  Notwithstanding anything to the contrary in this Section, the Borrower’s right to have a portion of the Revolving Advances bear interest at a LIBO Rate hereunder shall be suspended (i) at any time that there is a Default or an Event of Default under this Agreement, (ii) during any period in which any Bank, in its sole discretion, determines that deposits in amounts equal to the amount for which a LIBO Rate notification has been given and maturing at the end of the proposed Interest Period are not readily available to that Bank from major banks in the London interbank market, or (iii) during any period in which any Bank shall notify the Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any governmental authority asserts that it is unlawful, for such Bank to perform its obligations hereunder or to fund or maintain LIBO Rate Advances hereunder, in which case (A) for each Revolving Advance denominated in any Committed Currency, the Borrower shall either (x) prepay such Advances or (y) exchange such Advances into an Equivalent amount of Dollars and such Advances shall revert to the Floating Rate and (B) the obligation of the Bank to make LIBO Rate Advances shall be suspended until the Agent shall notify the Borrower and the Banks that the circumstances causing such suspension no longer exist.  Absent manifest error, the records of the Agent shall be conclusive evidence as to the amount of the Revolving Advances bearing interest at a LIBO Rate, the applicable LIBO Rate and the date on which the Interest Period applicable to such LIBO Rate expires.  LIBO Rate Advances may not be outstanding as more than six separate Interest Periods.

 

5.3                               Default Rate.

 

Upon the occurrence of an Event of Default, and so long as such Event of Default continues without written waiver thereof by the Agent and the Required Banks, in the sole discretion of the Required Banks and without waiving any of their other rights and remedies, the outstanding principal balance of the Advances shall bear interest at an annual rate which shall be equal to two percent (2.00%) over the annual rate or rates that would otherwise be in effect with respect to such Advances had there been no occurrence of such Event of Default.

 

5.4                               Fees on LIBO Rate Advances; Capital Adequacy; Funding Exceptions.

 

In addition to any interest payable on Advances made hereunder and any fees or other amounts payable hereunder, the Borrower agrees:

 

(a)                                 LIBO Rate Advances.  If at any time any applicable law, rule or regulation or the interpretation or administration thereof by any governmental authority (including, without limitation, Regulation D of the Federal Reserve Board):

 

(i)                                     shall subject any Bank to any tax, duty or other charges (including but not limited to any tax designed to discourage the purchase or acquisition of foreign securities or debt instruments by United States nationals) with respect to this Agreement, or shall materially change the basis of taxation of payments to any Bank of the principal of or interest on any portion of

 

21

 

the principal balance of any Advances bearing interest at a LIBO Rate (except for the imposition of or changes in respect of the rate of tax on the overall net income of that Bank); or

 

(ii)                                  shall impose or deem applicable or increase any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by any Bank because of any portion of the principal balance of any Advances bearing interest at a LIBO Rate and the result of any of the foregoing would be to increase the cost to that Bank of making or maintaining any such portion or to reduce any sum received or receivable by that Bank with respect to such portion;

 

then, within 30 days after demand by that Bank the Borrower shall pay that Bank such additional amount or amounts as will compensate that Bank for such increased cost or reduction.  A certificate in reasonable detail of any Bank setting forth the basis for the determination of such additional amount or amounts shall, absent obvious error, be conclusive evidence of such amount or amounts.  The Agent shall endeavor to notify the Borrower of any change in applicable laws, rules, regulations, interpretations or administrative practices that may give rise to liability under this Section, but the Agent shall have no liability to the Borrower for failure to so notify the Borrower, and the failure to give such notification shall not be a defense to the Borrower’s obligation to pay any amounts under this paragraph (a).

 

(b)                                 Capital Adequacy.  If any Bank determines at any time that its Return has been reduced as a result of any Capital Adequacy Rule Change, that Bank may require the Borrower to pay it the amount necessary to restore that Bank’s Return to what it would have been had there been no Capital Adequacy Rule Change.  For purposes of this paragraph (b), the following definitions shall apply:

 

(i)                                     “Return”, for any calendar quarter or shorter period, means the percentage determined by dividing (A) the sum of interest and ongoing fees earned by a Bank under this Agreement during such period by (B) the average capital that Bank is required to maintain during such period as a result of its being a party to this Agreement, as determined by that Bank based upon its total capital requirements and a reasonable attribution formula that takes account of the Capital Adequacy Rules then in effect. Return may be calculated for each calendar quarter and for the shorter period between the end of a calendar quarter and the date of termination in whole of this Agreement.

 

(ii)                                  “Capital Adequacy Rule” means any law, rule, regulation or guideline regarding capital adequacy that applies to any Bank, or the interpretation thereof by any governmental or regulatory authority including, without limitation, any agency of the European Union or similar monetary or multinational authority.  Capital Adequacy Rules include rules requiring financial institutions to maintain total capital in amounts based upon

 

22

 

percentages of outstanding loans, binding loan commitments and letters of credit.

 

(iii)                               “Capital Adequacy Rule Change” means any change in any Capital Adequacy Rule occurring after the date of this Agreement, but does not include any changes in applicable requirements that at the date hereof are scheduled to take place under the existing Capital Adequacy Rules or any increases in the capital that any Bank is required to maintain to the extent that the increases are required due to a regulatory authority’s assessment of that Bank’s financial condition.  For the avoidance of doubt, any changes resulting from requests, rules, guidelines or directives concerning capital adequacy (x) issued in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or (y) promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall be deemed to occur after the date of this Agreement, regardless of the date enacted, adopted or issued.

 

(iv)                              “Bank” includes (but is not limited to) the Agent, the Banks, as defined elsewhere in this Agreement, any assignee of any interest of any Bank hereunder, any participant in the loans made hereunder and any holding company of any of the foregoing.

 

The initial notice sent by a Bank shall be sent as promptly as practicable after that Bank learns that its Return has been reduced, shall include a demand for payment of the amount necessary to restore that Bank’s Return for the quarter in which the notice is sent, shall state in reasonable detail the cause for the reduction in that Bank’s Return and that Bank’s calculation of the amount of such reduction, and shall include that Bank’s representation that it has made similar demand on one or more other commercial borrowers with revolving or term loans in excess of $500,000.  Thereafter, that Bank may send a new notice during each calendar quarter setting forth the calculation of the reduced Return for that quarter and including a demand for payment of the amount necessary to restore that Bank’s Return for that quarter.  A Bank’s calculation in any such notice shall be conclusive and binding absent demonstrable error.

 

(c)                                  Funding Exceptions.  The Borrower shall also compensate any Bank, upon written request by that Bank (which request shall set forth the basis for requesting such amounts), for all losses and imputed costs in respect of any interest or other consideration paid by that Bank to lenders of funds borrowed by it or deposited with it to maintain any portion of the principal balance of any Advances at a LIBO Rate which that Bank sustains (i) on account of any failure of the Borrower to borrow at a LIBO Rate on a date specified therefor in a notice provided by the Borrower to the Agent under Section 5.2 of this Agreement or (ii) due to any payment or prepayment (whether pursuant to Section 6.2, 6.3, 9.2(d) or 10.2) of any Advance bearing interest at a LIBO Rate on a date other than the last day of

 

23

 

the applicable Interest Period for such Advance.  A certificate as to any such loss or cost (including calculations, in reasonable detail, showing how the applicable Bank computed such loss or cost) shall be promptly submitted by that Bank to the Borrower and shall, in the absence of manifest error, be conclusive and binding as to the amount thereof.  Such loss or cost may be computed as though the applicable Bank acquired deposits in the London interbank market to fund that portion of the principal balance whether or not such Bank actually did so.

 

5.5                               Mitigation of Yield Protection.

 

Each Bank hereby agrees that, commencing as promptly as practicable after it becomes aware of the occurrence of any event giving rise to the operation of Section 5.4 or 6.5 with respect to such Bank, such Bank will give notice thereof through the Agent to the Borrower.  The Borrower may at any time, by notice through the Agent to any Bank, request that such Bank change its lending office as to any Advance or type of Advance or that it specify a new lending office with respect to its Commitment and any Advance held by it or that it rebook any such Advance with a view to avoiding or mitigating the consequences of an occurrence such as described in the preceding sentence, and such Bank will use reasonable efforts to comply with such request unless, in the opinion of such Bank, such change or specification or rebooking is inadvisable or might have an adverse effect, economic or otherwise, upon it, including its reputation.  In addition, each Bank agrees that, except for changes or specifications or rebookings required by law or effected pursuant to the preceding sentence, if the result of any change or change of specification of lending office or rebooking would, but for this sentence, be to impose additional costs or requirements upon the Borrower pursuant to Section 5.4 or Section 6.5 (which would not be imposed absent such change or change of specification or rebooking) by reason of legal or regulatory requirements in effect at the time thereof and of which such Bank is aware at such time, then such costs or requirements shall not be imposed upon the Borrower but shall be borne by such Bank.  All expenses incurred by any Bank in changing a lending office or specifying another lending office of such Bank or rebooking any Advance in response to a request from the Borrower shall be paid by the Borrower.  Nothing in this Section 5.6 (including, without limitation, any failure by a Bank to give any notice contemplated in the first sentence hereof) shall limit, reduce or postpone any obligations of the Borrower under Section 5.4 or Section 6.5, including any obligations payable in respect of any period prior to the date of any change or specification of a new lending office or any rebooking of any Advance.

 

6.                                      DISBURSEMENTS AND PAYMENTS

 

6.1                               Requests for Borrowings.

 

Each Borrowing shall occur on written or telephonic request (confirmed immediately in writing) to the Agent (and in the case of a LIBO Rate Borrowing denominated in a Committed Currency, to the London Sub-Agent) from a person believed by the Agent to be an officer of or other authorized representative for the Borrower.  A request for a Borrowing must be received by the Agent (and in the case of a LIBO Rate Advance denominated in a Committed Currency, to the London Sub-Agent) (i) not later than 11:00 a.m. on the day that such Borrowing is to be made in the case of a Borrowing that is to bear interest initially at the Floating Rate or (ii) not later than 11:00 a.m. on the day three Business Days before the Business Day which is the first day of the

 

24

 

applicable Interest Period for such Borrowing in the case of a Borrowing denominated in Dollars that is to bear interest initially (in whole or in part) at a LIBO Rate, (y) 2:00 P.M. (London time) on the day three Business Days before the Business Day which is the first day of the applicable Interest Period for such Borrowing in the case of a Borrowing denominated in any Committed Currency.  Each Revolving Borrowing denominated in any Committed Currency shall bear interest at a LIBO Rate.  Each Borrowing must be in an amount not less than the Revolving Borrowing Minimum or a multiple thereof and shall consist of Revolving Advances in the same currency made on the same day by the Banks ratably according to their respective Commitments.  Each such notice of a Revolving Borrowing shall specify the requested (i) date of such Revolving Borrowing, (ii) whether the Advances comprising such Revolving Borrowing are to be LIBO Rate Advances, (iii) aggregate amount of such Revolving Borrowing, and (iv) in the case of a Revolving Borrowing consisting of LIBO Rate Advances, initial Interest Period and currency for each such Revolving Advance.  Upon receipt of any such request, the Agent shall notify the Banks of the intended Borrowing no later than 12:00 noon on the date such request for such Borrowing is received by the Agent.  At or before 2:00 p.m. on the date the requested Borrowing is to be made, in the case of a Revolving Borrowing consisting of Revolving Advances denominated in Dollars, and before 11:00 A.M. (London time) on the date of such Revolving Borrowing, in the case of a Revolving Borrowing consisting of Revolving Advances denominated in any Committed Currency, each Bank shall remit its Percentage of the requested Borrowing to the Agent at the applicable Agent’s Account in immediately available funds.  Prior to the close of business on the day the requested Borrowing is to be made, the Agent shall disburse such funds by crediting the same to the Borrower’s demand deposit account maintained with the Agent or in such other manner as the Agent and any officer of the Borrower may agree in writing.  Any Borrowing that is to initially bear interest at a LIBO Rate shall also be subject to all conditions set forth in Section 5.2 hereof.

 

Unless the Agent shall have received notice from a Bank prior to the time of any Borrowing that such Bank will not make available to the Agent such Bank’s ratable portion of such Borrowing, the Agent may assume that such Bank has made such portion available to the Agent on the date of such Borrowing in accordance with this Section 6.1 and the Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent that such Bank shall not have so made such ratable portion available to the Agent, such Bank and the Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to such Revolving Advances comprising such Borrowing and (ii) in the case of such Bank, (A) the Federal Funds Rate, in the case of Advances denominated in Dollars or (B) the cost of funds incurred by the Agent in respect of such amount in the case of Advances denominated in Committed Currencies. If such Bank shall repay to the Agent such corresponding amount, such amount so repaid shall constitute such Bank’s Revolving Advance as part of such Borrowing for purposes of this Agreement.

 

6.2                               Payments.

 

(a)                                 Generally.  The Borrower shall initiate all payments, except with respect to principal of, interest on, and other amounts relating to, Advances denominated in a Committed Currency, of principal, interest, fees and other payments due under

 

25

 

this Agreement and all prepayments with respect to this Agreement to the Banks by means of payment made by the Borrower to the Agent in Dollars not later than 12:00 noon in same day funds for the account of the Banks.  The Borrower shall initiate each payment with respect to principal of, interest on, and other amounts relating to, Advances denominated in a Committed Currency, not later than 11:00 A.M. (at the Payment Office for such Committed Currency) on the day when due in such Committed Currency to the Agent, by deposit of such funds to the applicable Agent’s Account in same day funds.  All such payments shall be made in immediately available funds.  Any payment due on a day on which the Agent is not open for substantially all of its business shall be due on the next day on which the Agent is so open.  Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or fee or commission, as the case may be; provided, however, that, if such extension would cause payment of interest on or principal of LIBO Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day.  Absent obvious error, the records of the Agent will be conclusive evidence of the principal and accrued interest owing with respect to all Obligations.

 

(b)                                 Revolving Advances: Interest Payments.  Interest accruing on the Revolving Advances during any month at the Floating Rate shall be payable quarterly in arrears on the last day of each March, June, September and December and at maturity.  Interest accruing on the Revolving Advances at the LIBO Rate shall be payable on the last day of the applicable Interest Period and at maturity and, if the applicable Interest Period has a duration of longer than three months, on the day during such Interest Period that is every three months after the first day of such Interest Period.

 

(c)                                  Revolving Advances: Principal Payment.  The entire principal balance of the Revolving Advances owing to each Bank shall be due and payable in full on the Commitment Termination Date applicable to such Bank.

 

(d)                                 Swingline Advances.  Interest and principal on the Swingline Advances shall be due and payable as set forth in Section 2.2.

 

(e)                                  Bid Loans: Interest.  Interest accruing on the principal balance of each Bid Loan shall be due and payable on the last day of the Interest Period applicable thereto.

 

(f)                                   Bid Loans: Principal.  The principal balance of each Bid Loan shall be due and payable in full on the last day of the Interest Period applicable thereto.

 

To the extent that the Agent receives funds for application to the amounts owing by the Borrower under or in respect of this Agreement or any Revolving Note in currencies other than the currency or currencies required to enable the Agent to distribute funds to the Banks in accordance with the terms of this Section 6.2, the Agent shall be entitled to convert or exchange such funds into Dollars or into a Committed Currency or from Dollars to a Committed Currency

 

26

 

or from a Committed Currency to Dollars, as the case may be, to the extent necessary to enable the Agent to distribute such funds in accordance with the terms of this Section 6.2; provided that the Borrower and each of the Banks hereby agree that the Agent shall not be liable or responsible for any loss, cost or expense suffered by the Borrower or such Bank as a result of any conversion or exchange of currencies effected pursuant to this Section 6.2 or as a result of the failure of the Agent to effect any such conversion or exchange, except for such loss, cost or expense due to the Agent’s negligence, gross negligence or willful misconduct; and provided further that the Borrower agrees to indemnify the Agent and each Bank, and hold the Agent and each Bank harmless, for any and all losses, costs and expenses incurred by the Agent or any Bank for any conversion or exchange of currencies (or the failure to convert or exchange any currencies) in accordance with this Section 6.2 except for such losses, costs or expenses due to the Agent’s or Bank’s negligence, gross negligence or willful misconduct.

 

6.3                               Prepayments.

 

(a)  Optional.  The Borrower may prepay the Revolving Advances or the Swingline Advances in whole at any time or from time to time in part, without penalty or premium, provided that (i) prepayment of any Bank’s Advances must be accompanied by pro rata prepayment of each other Bank’s Advances, (ii) any partial prepayment must be in an aggregate amount not less than $10,000,000, (iii) prepayment of any principal bearing interest at a Base Rate may be made only on one Business Day’s notice to the Agent, and (iv) any prepayment of Advances, which at the time of such prepayment bear interest at a LIBO Rate, shall be (A) made only on three Business Days’ notice to the Agent, (B) in a principal amount equal to that portion of the entire Borrowing to which any given LIBO Rate was applicable, and (C) accompanied by accrued interest on such prepayment through the date of prepayment and additional compensation calculated in accordance with Section 5.4(c) hereof. The Borrower may not prepay any Bid Loan without the consent of the holder thereof.

 

(b)  Mandatory.  If, on any date, the Agent notifies the Borrower that, on any interest payment date, the sum of (i) the aggregate principal amount of all Advances denominated in Dollars then outstanding plus (ii) the Equivalent in Dollars (determined on the third Business Day prior to such interest payment date) of the aggregate principal amount of all Advances denominated in Committed Currencies then outstanding exceeds 105% of the aggregate Commitments of the Banks on such date, the Borrower shall, as soon as practicable and in any event within two Business Days after receipt of such notice, subject to the proviso to this sentence set forth below, prepay the outstanding principal amount of any Advances in an aggregate amount sufficient to reduce such sum to an amount not to exceed 100% of the aggregate Commitments of the Banks on such date together with any interest accrued to the date of such prepayment on the aggregate principal amount of Advances prepaid; provided that if the aggregate principal amount of Floating Rate Advances outstanding at the time of such required prepayment is less than the amount of such required prepayment, the portion of such required prepayment in excess of the aggregate principal amount of Floating Rate Advances then outstanding shall be deferred until the earliest to occur of the last day of the Interest Period of the outstanding LIBO Rate Advances in an amount equal to the excess of such required prepayment.  The Agent shall give prompt notice of any prepayment required under this Section 6.3(b) to the Borrower and the Banks, and shall provide prompt notice to the Borrower of any such notice of required prepayment received by it from any Bank.

 

27

 

 

6.4                               Termination or Reduction of the Commitments.

 

The Borrower may from time to time on at least ten calendar days’ prior notice received by the Agent (which shall promptly advise each Bank thereof) terminate the Commitments of the Banks in whole or permanently reduce the Commitments of the Banks in part, provided that (i) the Commitments of the Banks may not be terminated in whole at any time that any Advance remains outstanding, (ii) each partial reduction of the Commitments of the Banks shall be in the minimum amount of $10,000,000 or in a multiple of $10,000,000 in excess thereof, (iii) each partial reduction of the Commitments of the Banks shall be pro rata as to all of the Commitments of the Banks on the basis of the respective Percentages of the Banks, and (iv) no partial reduction of the Commitments of the Banks shall reduce the aggregate amount of the Commitments of the Banks to an amount less than the Aggregate Outstandings.

 

6.5                               Taxes.

 

(a)                                 All payments made by the Borrower to the Agent or any Bank (herein any “Payee”) under or in connection with this Agreement shall be made without any setoff or other counterclaim, and free and clear of and without deduction for or on account of any present or future taxes now or hereafter imposed by any governmental or other authority, except to the extent that such deduction or withholding is compelled by law.  As used herein, the term “Taxes” shall include all income, excise and other taxes of whatever nature (other than taxes generally assessed on the overall net income of the Payee by the government or other authority of the country, state or political subdivision in which such Payee is incorporated or in which the office through which the Payee is acting is located) as well as all levies, imposts, duties, charges, or fees of whatever nature.  If the Borrower is compelled by law to make any such deductions or withholdings it will:

 

(i)                                     pay to the relevant authorities the full amount required to be so withheld or deducted;

 

(ii)                                  except to the extent that such deduction or withholding results from a breach by any Payee of the representations contained in Section 6.5(b), pay such additional amounts (including, without limitation, any penalties, interest or expenses) as may be necessary in order that the net amount received by each Payee after such deductions or withholdings (including any required deduction or withholding on such additional amounts) shall equal the amount such Payee would have received had no such deductions or withholdings been made; and

 

(iii)                               promptly forward to the Agent (for delivery to such Payee) an official receipt or other documentation satisfactory to the Agent evidencing such payment to such authorities.

 

(b)                                 If any Taxes otherwise payable by the Borrower pursuant to the foregoing paragraph are directly asserted against any Payee, such Payee may pay such

 

28

 

Taxes and the Borrower promptly shall reimburse such Payee to the full extent otherwise required by such paragraph.  The obligations of the Borrower under this Section 6.5 shall survive any termination of this Agreement.  Each Bank by its execution of this Agreement does hereby represent (and each additional Bank by its execution of any Assignment Certificate pursuant to Section 11.11 shall be deemed to represent) to each other Bank, the Agent and the Borrower that if such Bank or additional Bank is organized under the laws of any jurisdiction other than the United States or any state thereof, such Bank or additional Bank has furnished to the Agent and the Borrower either U.S. Internal Revenue Service Form W-8BEN, or U.S. Internal Revenue Service Form W-8ECI, as applicable (wherein such Bank claims entitlement to complete exemption from U.S. Federal withholding tax on all interest payments hereunder).

 

(c)                                  If the Borrower makes an increased tax payment to a Bank under the foregoing clause (a)(ii) and that Bank determines in its absolute discretion that (a) a tax credit is attributable to that tax payment, and (b) that Bank has obtained, utilized and fully retained that tax credit on an affiliated group basis, then such Bank shall pay an amount to the Borrower which that Bank determines in its absolute discretion will leave it (after that payment) in the same after-tax position as it would have been in had the payment under clause (a)(ii) not been required to be made by the Borrower; provided, however, that (i) such Bank shall be the sole judge of the amount of such tax credit and the date on which it is received, (ii) no Bank shall be obliged to disclose information regarding its tax affairs or tax computations, (iii) nothing herein shall interfere with a Bank’s right to manage its tax affairs in whatever manner it sees fit, and (iv) if such Bank shall subsequently determine that it has lost the credit of all or a portion of such tax credit, the Borrower shall promptly remit to such Bank the amount certified by such Bank to be the amount necessary to restore such Bank to the position it would have been in if no payment had been made pursuant to this sentence.

 

6.6                               Judgment Currency.

 

If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due under this Agreement in Dollars or any alternative currency (the “Specified Currency”) into another currency (the “Judgment Currency”), the rate of exchange which shall be applied shall be that at which, in accordance with normal banking procedures, the Agent could purchase the Specified Currency with the amount of the Judgment Currency on the Business Day next preceding the day on which such judgment is rendered.  The obligation of the Borrower with respect to any such sum due from it to the Agent or any Bank (each, an “Entitled Person”) shall, notwithstanding the rate of exchange actually applied in rendering such judgment, be discharged only to the extent that on the Business Day following receipt by such Entitled Person of any sum adjudged to be due under this Agreement in the Judgment Currency, such Entitled Person may, in accordance with normal banking procedures, purchase and transfer to the required location of payment the Specified Currency with the amount of the Judgment Currency so adjudged to be due; and the Borrower hereby, as a separate obligation and notwithstanding any such judgment, agrees to indemnify such Entitled Person against, and to pay such Entitled Person on demand, in the applicable Specified Currency, any difference between the sum originally due to such Entitled

 

29

 

Person in the Specified Currency and the amount of the Specified Currency so purchased and transferred on that Business Day.

 

6.7                               Defaulting Banks.

 

Notwithstanding any provision of this Agreement to the contrary, if any Bank becomes a Defaulting Bank, then the following provisions shall apply for so long as such Bank is a Defaulting Bank:

 

(a)                                 fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Bank pursuant to Section 4.1;

 

(b)                                 the Credit Exposure of such Defaulting Bank shall not be included in determining whether the Required Banks have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 12.4); provided, that this clause (b) shall not apply to the vote of a Defaulting Bank in the case of an amendment, waiver or other modification requiring the consent of such Bank or each Bank affected thereby;

 

(c)                                  if any Swingline Advances are outstanding at the time such Bank becomes a Defaulting Bank then:

 

(i)                                     all or any part of such Defaulting Bank’s participation in Swingline Advances shall be reallocated among the non-Defaulting Banks in accordance with their respective Percentages but only to the extent the sum of all non-Defaulting Banks’ Committed Outstandings plus such Defaulting Bank’s Percentage of Swingline Advances does not exceed the total of all non-Defaulting Banks’ Commitments;

 

(ii)                                  if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one Business Day following notice by the Agent prepay such Swingline Advances to the extent not so reallocated; and

 

(d)                                 so long as such Bank is a Defaulting Bank, the Swingline Bank shall not be required to fund any Swingline Advance unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Banks, and participating interests in any newly made Swingline Advance shall be allocated among non-Defaulting Banks in a manner consistent with Section 6.7(c)(i) (and such Defaulting Bank shall not participate therein).

 

If (i) a Bankruptcy Event with respect to a Parent of any Bank shall occur following the date hereof and for so long as such event shall continue or (ii) the Swingline Bank has a good faith belief that any Bank has defaulted in fulfilling its obligations under one or more other agreements in which such Bank commits to extend credit, the Swingline Bank shall not be required to fund any Swingline Advance unless the Swingline Bank shall have entered into arrangements with the Borrower or such Bank, satisfactory to the Swingline Bank to defease any risk to it in respect of such Bank hereunder.

 

In the event that the Agent, the Borrower and the Swingline Bank each agrees that a Defaulting Bank has adequately remedied all matters that caused such Bank to be a Defaulting Bank, then the participations of the Banks in Swingline Advances shall be readjusted to reflect the inclusion of such Bank’s Commitment and on such date such Bank shall purchase at par such of the Advances of the other Banks (other than Bid Loans and Swingline Advances) as the Agent

 

30

 

shall determine may be necessary in order for such Bank to hold such Advances in accordance with its Percentage.

 

7.                                      CONDITIONS PRECEDENT

 

On or before the date hereof, the Borrower shall deliver to the Agent the documents detailed in Exhibit A, properly executed and in form and content acceptable to the Agent and the Banks.  For purposes of determining compliance with the conditions of this Section 7, each Bank shall be deemed to have consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Banks unless an officer of the Agent responsible for the transactions contemplated by this Agreement shall have received notice from such Bank prior to the date hereof, specifying its objection thereto.

 

8.                                      REPRESENTATIONS AND WARRANTIES

 

To induce the Agent and the Banks to enter into this Agreement, the Borrower makes the representations and warranties contained in Exhibit B.  Each request for a Borrowing under this Agreement, each increase of Commitments in accordance with Section 2.6 and each extension of Commitments in accordance with Section 2.7 constitutes a reaffirmation of these representations and warranties (other than, in the case of any Borrowing or an increase of Commitments in accordance with Section 2.6 the representations and warranties listed as “Material Adverse Effect”, “Litigation” and “Environmental Matters” on Exhibit B) as of the date of such Borrowing.

 

9.                                      COVENANTS.

 

From the date hereof through the Commitment Termination Date, and thereafter until the Obligations are paid in full, unless the Required Banks (or the Agent, with the consent of the Required Banks) shall otherwise agree in writing, the Borrower shall do the following:

 

9.1                               Financial Information

 

The Borrower shall deliver to the Agent:

 

(a)                                 Annual Financial Statements.  Within 100 days of the Borrower’s fiscal year end, the Borrower’s consolidated annual financial statements.  The statements must be audited with an unqualified opinion by a certified public accountant acceptable to the Agent.

 

(b)                                 Interim Financial Statements.  Within 60 days of each Fiscal Quarter, the Borrower’s interim financial statements.  These statements will be prepared on a consolidated basis and in accordance with GAAP.  These statements will include a statement of cash flows.

 

(c)                                  Compliance Certificate.  Concurrent with the financial statements required above, a compliance certificate, in the form of Exhibit E, signed by an officer of the Borrower, attesting to the accuracy of the financial statements, and demonstrating

 

31

 

in form acceptable to the Agent that the Borrower remains in compliance with the covenants detailed in this Agreement.

 

(d)                                 Notices.  Promptly upon becoming aware of the same, written notice of any Default or Event of Default.

 

(e)                                  Additional Information.  Upon request of the Agent or any of the Banks, such other information as it may reasonably request.

 

The Borrower shall deliver the statements required under paragraphs (a) and (b) to the Agent by e-mail containing either the body of such statements or a hyperlink to the location of such statements on the World Wide Web.  Upon the Agent’s receipt of any of the foregoing from the Borrower, the Agent shall promptly deliver a copy of the same to each Bank, transmitted in the manner received by the Agent.

 

9.2                               Covenants

 

The Borrower shall:

 

(a)                                 Negative Pledge.  Not create, incur or suffer to exist any pledge, lien, security interest, assignment or transfer upon or of any of the Borrower’s accounts receivable or other rights to payment, whether now existing or hereafter created or existing; provided, however, nothing in this Section 9.2(a) shall prohibit the Borrower from (i) assigning or transferring certain of its accounts receivable in connection with a sale of the part of its business from which such accounts receivable have arisen, or (ii) transferring not more than 25% of its accounts receivable (with such percentage determined by face amount of the accounts receivable as of the time immediately before such transfer) to a Securitization Entity in connection with a Securitization Transaction, so long as the Borrower receives reasonably equivalent value on account of such transfer.

 

(b)                                 Taxes.  Pay, when due, all taxes, assessments and governmental charges levied or imposed upon the Borrower; provided, however, the Borrower shall not be required to pay any such tax, assessment or governmental charge whose amount, applicability or validity is being contested in good faith by appropriate proceedings and for which adequate reserves have been established by the Borrower in accordance with generally accepted accounting principles.

 

(c)                                  Insurance.  Cause its properties to be adequately insured against loss or damage and to carry such other insurance as is usually carried by persons engaged in the same or similar business.  Such insurance shall either be maintained by the Borrower through self-insurance through captive insurance companies or by insurance issued by reputable and solvent insurance companies.

 

(d)                                 Merger.  Refrain from being acquired by any other entity and refrain from transferring all or substantially all of its assets to, or consolidating, merging or otherwise combining with, any other entity where the Borrower is not the surviving entity; provided, however, the Borrower’s failure to comply with the

 

32

 

requirements of this Section 9.2(d) shall not constitute an Event of Default under Section 10.1(f) of this Agreement, but instead shall give the Required Banks the right, by written notice to the Borrower, to demand payment of unpaid principal, accrued interest and all other amounts payable under this Agreement and to terminate the Commitments, with such demand and termination to be effective thirty calendar days’ following such written notice from the Required Banks to the Borrower.

 

(e)                                  Maintenance of Properties.  Make all repairs, renewals or replacements necessary to keep its plant, properties and equipment in good working condition; provided, however, that nothing in this Section 9.2(e) shall prevent the Borrower from discontinuing the operation or maintenance of such plant, properties or equipment if such discontinuance is, in the judgment of the Borrower, desirable in the conduct of its business.

 

(f)                                   Books and Records.  Maintain adequate books and records in accordance with generally accepted accounting principles.

 

(g)                                  Compliance with Laws.  Comply with all material laws and regulations applicable to its business.

 

(h)                                 Preservation of Rights.  Maintain and preserve its corporate existence and all material rights, privileges, charters and franchises it now has; provided, however, that the Borrower shall not be required to preserve any such right, privilege, charter or franchise if the Board of Directors of the Borrower shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Borrower.

 

(i)                                     Inspection.  Upon reasonable notice by the Agent to the Borrower, permit the Agent or any Bank to visit and inspect the Borrower’s properties and examine its books and records to the extent the Agent or such Bank determines such inspection and examination is necessary for the Agent or such Bank to observe and monitor the Borrower’s financial performance and financial condition and to assure the Borrower’s compliance with its obligations under this Agreement.

 

(j)                                    Use of Proceeds.  Use the proceeds of the Advances solely for the Borrower’s general corporate purposes; provided, however, the proceeds of the Advances shall not be used by the Borrower (i) in connection with any acquisition by the Borrower of other businesses, whether through merger, consolidation, acquisition of assets, acquisition of stock or other ownership interests or otherwise; or (ii) in connection with or preparation for any case or proceeding contemplated by Section 10.1(j) hereof.

 

(k)                                 Foreign Assets Control.  Ensure that neither the Borrower nor any subsidiary of the Borrower nor any Person who owns a controlling interest in or otherwise controls the Borrower is or shall be listed on (i) the lists of Specially Designated Nationals and Blocked Persons maintained by the Department of the Treasury’s

 

33

 

Office of Foreign Assets Control, or (ii) the list of persons whose property or interests in property are blocked or subject to blocking pursuant to section 1 of Executive Order 13224 of September 23, 2001.

 

(l)                                     Ratio of EBITDA to Interest.  Maintain its EBITDA to Interest Ratio as of the end of each fiscal quarter of the Borrower at not less than 3.0 to 1.

 

These covenants were negotiated by the Banks and the Borrower based on information provided to the Banks by the Borrower.  A breach of a covenant is an indication that the risk of the transaction has increased.  In consideration for any waiver or modification of these covenants, the Banks may require: collateral or other credit support; higher fees or interest rates; and/or revised loan documentation or monitoring.  Any covenant waiver or modification will be made in the sole discretion of the Required Banks.  The foregoing in no way limits the rights of the Agent and Banks under Section 10 of this Agreement.

 

10.                               EVENTS OF DEFAULT AND REMEDIES.

 

10.1                        Default

 

As used herein, “Event of Default” means any of the following:

 

(a)                                 Default in the payment when due of any principal due with respect to any of the Obligations and the continuance of such default for one (1) calendar day.

 

(b)                                 Default in the payment when due of any interest, fees, costs, expenses or other payments required to be paid by the Borrower under this Agreement and the continuance of such default for five (5) calendar days.

 

(c)                                  Default in the payment of unpaid principal, interest and other payments under this Agreement (other than as set forth in subsections (a) and (b) above) following the Borrower’s receipt of written notice from the Required Banks demanding payment thereof as permitted in this Agreement and the passage of thirty calendar days following such written notice.

 

(d)                                 Default in the observance or performance of any covenant or agreement contained in Section 9.2(a) or 9.2(l) of this Agreement.

 

(e)                                  Default in the observance or performance of any covenant or agreement contained in Section 9.1 of this Agreement and continuance of such default for twenty (20) calendar days.

 

(f)                                   Default in the observance or performance of any covenant or agreement contained in this Agreement or related documents (other than a covenant or agreement a default in whose performance is elsewhere in this Section 10.1 specifically dealt with) and continuance for more than thirty (30) calendar days.

 

(g)                                  Default in the payment of any indebtedness of the Borrower when due or, if payable on demand, on demand, or any other default by the Borrower in any

 

34

 

agreement relating to indebtedness or contingent liabilities that would allow the maturity of such indebtedness to be accelerated, in each case if the outstanding balance (including principal, interest, and any other sums) of all such indebtedness or liabilities in default at any one time exceeds $200,000,000.

 

(h)                                 Any representation or warranty made by the Borrower to the Agent or the Banks proves to be untrue in any material respect.

 

(i)                                     The rendering against the Borrower of any final judgment, decree or order for the payment of money in excess of $500,000,000 (excluding any portion of such judgment, decree or order which is insured by an unrelated third-party insurer which has not objected to or denied coverage), and the continuance of such judgment, decree or order unsatisfied and in effect for any period of ninety (90) calendar days without a stay of execution.

 

(j)                                    With or without the Borrower’s consent, a custodian, trustee or receiver shall be appointed for the majority of the properties of the Borrower, or a petition shall be filed by or against the Borrower under the United States Bankruptcy Code or any similar comprehensive bankruptcy or insolvency law, whether domestic or foreign.

 

10.2                        Remedies.

 

Upon the occurrence of any one or more Events of Default, or at any time thereafter, the Agent may, with the consent of the Required Banks, and shall, upon request of the Required Banks:

 

(a)                                 terminate the Commitments;

 

(b)                                 declare the unpaid principal, accrued interest and all other amounts payable under this Agreement to be immediately due and payable; and/or

 

(c)                                  exercise any or all remedies available to the Agent or the Banks under the other Loan Documents or otherwise available by law or agreement.

 

Notwithstanding the foregoing, upon the occurrence of an Event of Default under paragraph 10.1(j), the Commitments shall immediately terminate and the unpaid principal, accrued interest and all other amounts payable under this Agreement will become immediately due and payable.

 

10.3                        Setoff

 

Each Bank may, upon the occurrence of an Event of Default or at any time thereafter, without prior notice to the Borrower, set off and apply any and all deposits held by, and other indebtedness owing by, such Bank to or for the credit or the account of the Borrower against any and all obligations owing to such Bank hereunder, whether now or hereafter existing, whether or not the Agent or such Bank has made demand under this Agreement or any Loan Document and whether such obligations may be contingent or unmatured.  Such right shall be in addition to and not in lieu of any other rights and remedies available to the Agent or the Banks under the other Loan Documents or otherwise available by law or agreement.  Each Bank will endeavor to notify

 

35

 

the Borrower and the Agent promptly after any such setoff made by such Bank; provided, however, that the failure to give such notice shall not affect the validity of such setoff or any application of funds realized by such setoff.  Each Bank shall have the obligations, if any, specified in Section 11.4 with respect to any amounts obtained pursuant to this Section 10.3.

 

11.                               AGENCY

 

11.1                        Authorization.

 

Each Bank irrevocably appoints and authorizes the Agent to act on behalf of such Bank to the extent provided herein or in any document or instrument delivered hereunder or in connection herewith, and to take such other action as may be reasonably incidental thereto.  As to any matters not expressly provided for by this Agreement or the other Loan Documents, the Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Banks, and such instruments shall be binding upon all Banks.

 

11.2                        Distribution of Payments and Proceeds.

 

(a)                                 After deduction of any costs of collection as hereinafter provided in Section 11.3, any fees specified herein or in any Fee Letter, and any servicing fee provided in any agreement between the Agent and the applicable Bank, the Agent shall remit to each Bank that Bank’s Percentage of all payments of principal, interest, fees and other payments that are received by the Agent under the Loan Documents.  Each Bank’s interest in the Loan Documents shall be payable solely from payments, collections and proceeds actually received by the Agent under the Loan Documents; and the Agent’s only liability to the Banks hereunder shall be to account for each Bank’s Percentage of such payments, collections and proceeds in accordance with this Agreement.  If the Agent is ever required for any reason to refund any such payments, collections or proceeds, each Bank will refund to the Agent, upon demand, its Percentage of such payments, collections or proceeds, together with its Percentage of interest or penalties, if any, payable by the Agent in connection with such refund.  The Agent may, in its sole discretion, make payment to the Banks in anticipation of receipt of payment from the Borrower.  If the Agent fails to receive any such anticipated payment from the Borrower, each Bank shall promptly refund to the Agent, upon demand, any such payment made to it in anticipation of payment from the Borrower, together with interest for each day on such amount until so refunded at a rate equal to (A) the Federal Funds Rate, in the case of Advances denominated in Dollars or (B) the cost of funds incurred by the Agent in respect of such amount in the case of Advances denominated in Committed Currencies, for each such date.

 

(b)                                 Notwithstanding the foregoing, if any Bank has wrongfully refused to fund its Percentage of any Borrowing or other advance as required hereunder, or if the principal balance of any Bank’s Advances is for any other reason less than its Percentage of the aggregate principal balances of the Advances, the Agent may remit all payments received by it to the other Banks until such payments have

 

36

 

reduced the aggregate amounts owed by the Borrower to the extent that the aggregate amount owing to such Bank hereunder is equal to its Percentage of the aggregate amount owing to all of the Banks hereunder.  The provisions of this paragraph are intended only to set forth certain rules for the application of payments, proceeds and collections in the event that a Bank has breached its obligations hereunder and shall not be deemed to excuse any Bank from such obligations.

 

(c)                                  Notwithstanding the foregoing, payments designated by the Borrower as pertaining to any Bid Loan shall be paid by the Agent (after deduction of costs of collection as hereinafter provided) to the applicable Bank holding such Bid Loan, without regard to such Bank’s Percentage.

 

11.3                        Expenses.

 

All payments, collections and proceeds received or effected by the Agent may be applied, first, to pay or reimburse the Agent for all reasonable costs, expenses, damages and liabilities at any time incurred by or imposed upon the Agent in connection with this Agreement or any other Loan Document (including but not limited to all reasonable attorney’s fees, foreclosure expenses and advances made to protect the security of any collateral), except to the extent that the Agent shall have previously received reimbursement of such costs, expenses, damages or liabilities from the Borrower.  If the Agent does not receive payments, collections or proceeds sufficient to cover any such costs, expenses, damages or liabilities within five (5) calendar days after their incurrence or imposition, each Bank shall, upon demand, remit to the Agent its Percentage of the difference between (i) such costs, expenses, damages and liabilities, and (ii) such payments, collections and proceeds; provided, however, that no Bank shall be liable for any portion of such costs, expenses, damages and liabilities resulting from the gross negligence or willful misconduct of the Agent.

 

11.4                        Payments Received Directly by Banks.

 

If any Bank shall obtain any payment or other recovery (whether voluntary, involuntary, by application of offset or otherwise) on account of principal of or interest on any Revolving Advances other than through distributions made in accordance with Section 11.2, such Bank shall promptly give notice of such fact to the Agent and shall purchase from the other Banks such participations in the Revolving Advances as shall be necessary to cause the purchasing Bank to share the excess payment or other recovery ratably with each of them; provided, however, that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing Bank, the purchase shall be rescinded and the purchasing Bank restored to the extent of such recovery (but without interest thereon).  The Borrower agrees that any Bank so purchasing a participation from another Bank pursuant to this Section 11.4 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Bank were the direct creditor of the Borrower in the amount of such participation.

 

37

 

 

11.5                        Indemnification.

 

Each Bank severally (but not jointly) hereby agrees to indemnify and hold harmless the Agent, as well as the Agent’s agents, employees, officers and directors, ratably according to the respective Percentages of each of the Banks from and against any and all losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs, disbursements, or expenses (including reasonable attorneys’ fees and expenses) of any kind or nature whatsoever, which are imposed on, incurred by, or asserted against the Agent or its agents, employees, officers or directors in any way relating to or arising out of this Agreement or the other Loan Documents, or as a result of any action taken or omitted to be taken by the Agent; provided, however, that no Bank shall be liable for any portion of any such losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs, disbursements, or expenses resulting from the gross negligence or willful misconduct of the Agent.  Notwithstanding any other provisions of this Agreement or the other Loan Documents, the Agent shall in all cases be fully justified in failing or refusing to act hereunder unless it shall be indemnified to its satisfaction by the Banks against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.

 

11.6                        Limitations on Agent’s Power.

 

Notwithstanding any other provision of this Agreement, the Agent shall not have the power, without the written consent of all of the Banks, to (i) forgive any indebtedness of the Borrower arising under this Agreement, (ii) agree to reduce the rate of interest or fees charged under this Agreement except as expressly provided in this Agreement, (iii) agree to extend the due date for payment of principal, interest, fees or any other amount due under this Agreement, (iv) extend the Commitment Termination Date or increase the amount of any of the Commitments except as provided in Sections 2.6 and 2.7, (v) amend the definition of “Required Banks,” (vi) amend this Section 11.6, Section 12.4 or Section 12.5 of this Agreement, or any provision herein providing for consent or other action by all Banks, (vii) amend any provision for the pro rata treatment of the Banks with respect to the sharing of payments of principal or interest or the making of Advances, or (viii) release the Borrower from personal liability on account of its obligations hereunder.

 

11.7                        Exculpation of the Agent by the Banks.

 

The Agent shall be entitled to rely upon advice of counsel concerning legal matters, and upon any writing which it believes to be genuine or to have been presented by a proper person.  Neither the Agent nor any of its directors, officers, employees or agents shall (a) be responsible to any of the Banks for any recitals, representations or warranties contained in, or for the execution, validity, genuineness, effectiveness or enforceability of this Agreement, any Loan Document, or any other instrument or document delivered hereunder or in connection herewith, (b) be responsible to any of the Banks for the validity, genuineness, perfection, effectiveness, enforceability, existence, value or enforcement of any collateral security, (c) be under any duty to any of the Banks to inquire into or pass upon any of the foregoing matters, or to make any inquiry concerning the performance by the Borrower or any other obligor of its obligations, or (d) in any event, be liable to any of the Banks for any action taken or omitted by it or them, except for its or their own gross negligence or willful misconduct.

 

38

 

11.8                        Agent and Affiliates.

 

The Agent shall have the same rights, powers and obligations hereunder in its individual capacity as any other Bank, and may exercise or refrain from exercising the same as though it were not the Agent, and the Agent and its affiliates may accept deposits from and generally engage in any kind of business with the Borrower as fully as if the Agent were not the Agent hereunder.

 

11.9                        Credit Investigation.

 

Each Bank acknowledges that it has made such inquiries and taken such care on its own behalf as would have been the case had its Commitment been granted and the Advances made directly by such Bank to the Borrower without the intervention of the Agent or any other Bank.  Each Bank agrees and acknowledges that the Agent makes no representations or warranties about the creditworthiness of the Borrower or any other party to this Agreement or with respect to the legality, validity, sufficiency or enforceability of this Agreement, any Loan Document, or any other instrument or document delivered hereunder or in connection herewith.

 

11.10                 Resignation.

 

The Agent may resign as such at any time upon at least 30 days’ prior notice to the Borrower and the Banks.  In the event of any resignation of the Agent, the Required Banks shall as promptly as practicable appoint a successor Agent.  If no such successor Agent shall have been so appointed by the Required Banks and shall have accepted such appointment within 30 days after the resigning Agent’s giving of notice of resignation, then the resigning Agent may, on behalf of the Banks, appoint a successor Agent, which shall be a commercial bank organized under the laws of the United States of America or of any State thereof.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon be entitled to receive from the prior Agent such documents of transfer and assignment as such successor Agent may reasonably request and the resigning Agent shall be discharged from its duties and obligations under this Agreement.  After any resignation pursuant to this Section, the provisions of this Section shall inure to the benefit of the successor Agent as to any actions taken or omitted to be taken by it while it is an Agent hereunder and to the retiring Agent as to any actions taken or omitted to be taken by it while it was an Agent hereunder.

 

11.11                 Assignments and Participations.

 

(a)                                 Participations.  Any Bank may, at its option, sell one or more participations in that Bank’s Advances; provided, however, (i) no such participation shall relieve any Bank of its obligations under this Agreement and the other Loan Documents, including, without limitation, its obligation to make Advances hereunder on the terms and subject to the conditions set forth herein, (ii) the Borrower, the Agent and the other Banks shall continue to deal solely and directly with such Bank granting any such participation in connection with such Bank’s rights and obligations under this Agreement and the other Loan Documents, and (iii) no such participant under any such participation shall have any right to approve any amendment or waiver of any provision of this Agreement or the other Loan Documents, or to consent to any departure by the Borrower therefrom, except to

 

39

 

the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the Advances in which such participant has such participation, or any fees or other amounts payable hereunder if such participant participates therein, or would postpone any date fixed for any payment of principal of, or interest on, the Advances in which such participant has such participation, or any fees or other amounts payable hereunder if such participant participates therein.  Except as set forth in (iii) above, no holder of any such participation shall be entitled to require the Bank granting such participation to take or omit to take any action hereunder.

 

(b)                                 Assignments.

 

(i)                                     Generally.  Subject to the limitations set forth in subsection (ii) below, any Bank may, at its option, assign to another Person all or a part of its Commitment, Advances and other rights and obligations under this Agreement, but only pursuant to an Assignment Certificate.  From and after the effective date of any such assignment, the assignee thereunder shall, to the extent that rights and obligations hereunder have been assigned to it pursuant to such assignment, have the rights and obligations so assigned to it, and the assigning Bank shall, to the extent that rights and obligations have been assigned by it pursuant to such assignment, relinquish its rights and be released from its obligations under this Agreement.  Any Bank making an assignment under this Section shall pay the Agent a transfer fee in the amount of $3,500 concurrent with such assignment.

 

(ii)                                  Limitations.  Notwithstanding paragraph (i):

 

(A)                               Any assignment under paragraph (i) may be made only with the prior written consent of the Agent, the Swingline Bank and the Borrower, which consent shall not be unreasonably withheld; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Agent within ten Business Days after having received notice thereof.

 

(B)                               Unless the Agent, the Swingline Bank and the Borrower otherwise consent in writing, which consent shall not be unreasonably withheld, no assignment may be made to any Person that is not an Eligible Assignee.

 

(C)                               Unless the Agent and the Borrower otherwise consent in writing, which consent shall not be unreasonably withheld, the aggregate Credit Exposure assigned by any Bank shall not exceed 60% of its original Commitment hereunder, as such Commitment may have been reduced from time to time pursuant to Section 6.4.

 

40

 

(D)                               Unless the Agent and the Borrower otherwise consent in writing, which consent shall not be unreasonably withheld, any assignment of a part of a Bank’s Commitment, Advances and other rights and obligations must be in a minimum amount of $10,000,000.

 

No consent of the Borrower that would otherwise be required under this subsection (ii) shall be required during any period in which an Event of Default exists.  No consent of the Agent or the Borrower that would otherwise be required under this subsection (ii) shall be required in connection with an assignment by any Bank to any Affiliate of that Bank or to another Bank.

 

(c)                                  Information.  The Borrower authorizes the Agent and each Bank to disclose to its affiliates and any participant or assignee and any prospective participant or assignee any and all financial and other information in the possession of the Agent or that Bank concerning the Borrower.

 

(d)                                 Assignment to Federal Reserve Bank.  Nothing herein shall prohibit any Bank from pledging or assigning any Revolving Note to any Federal Reserve Bank in accordance with applicable law.

 

11.12                 Syndication Agent and Documentation Agent.

 

The Banks identified on the title page as “Syndication Agent” and “Documentation Agent” shall have no right, power, obligation or liability under this Agreement or any other Loan Document other than those applicable to all Banks as such.  Each Bank acknowledges that it has not relied, and will not rely, on any Bank so identified in deciding to enter into this Agreement or in taking or omitting any action hereunder.

 

11.13                 Delegation of Duties.

 

The Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Agent, including the London Sub-Agent.  The exculpatory provisions of this Article shall apply to any such sub-agent.

 

12.                               MISCELLANEOUS.

 

12.1                        365-Day Year.

 

All interest on Advances subject to the Floating Rate, LIBO Rate in the case of Advances denominated in Sterling and all fees due under this Agreement will be calculated based on the actual days elapsed in a 365-day year.  All interest on Advances subject to a LIBO Rate or the Federal Funds Rate and all fees will be calculated based on the actual days elapsed in a 360-day year.

 

41

 

12.2                        GAAP.

 

Except as otherwise stated in this Agreement, all financial information provided to the Agent or the Banks and all calculations for compliance with financial covenants will be made using generally accepted accounting principles consistently applied (“GAAP”).

 

12.3                        No Waiver; Cumulative Remedies.

 

No failure or delay by the Agent or any Bank in exercising any rights under this Agreement shall be deemed a waiver of those rights.  The remedies provided for in the Agreement are cumulative and not exclusive of any remedies provided by law.

 

12.4                        Amendments, Etc.

 

Any amendment, modification, termination, or waiver of any provision of this Agreement must be in writing and signed by the Agent with the approval of the Required Banks (or such other number of Banks, if any, as may be required hereunder for such amendment, modification, termination or waiver).  Notwithstanding the foregoing, any modification of the type described in the first sentence of Section 11.6 shall be effective only if signed by each Bank.

 

12.5                        Binding Effect: Assignment.

 

This Agreement is binding on the Borrower, the Agent and the Banks and their successors and assigns.  The Borrower may not assign its rights hereunder without the prior written consent of all of the Banks.

 

12.6                        New York Law.

 

This Agreement is governed by the substantive laws of the State of New York.

 

12.7                        Severability of Provisions.

 

If any part of this Agreement is unenforceable, the rest of the Agreement may still be enforced.

 

12.8                        Integration.

 

This Agreement contains the entire understanding between the parties and supersedes all other oral or written agreements between the Borrower and the Agent or any Bank.

 

12.9                        Notice.

 

(a)                                 Except as otherwise specified herein, all notices and other communications hereunder shall be in writing and shall be (i) personally delivered, (ii) sent by registered mail, postage prepaid, or (iii) transmitted by telecopy, in each case addressed to the party to whom notice is being given at its address set forth by its signature below or if telecopied, transmitted to that party at its telecopier number set forth by its signature below; or, as to each party, at such other address or telecopier number as may hereafter be designated in a notice by that party to the other party complying with the terms of this Section.  All such notices or other communications shall

 

42

 

be deemed to have been given on (i) the date received if delivered personally, (ii) the date of posting if delivered by mail, or (iii) the date of transmission if delivered by telecopy.  All communications required hereunder to be delivered by e-mail shall be transmitted to the e-mail address set forth by the applicable party’s signature below, or, as to each party, at such other e-mail address as may hereafter be designated in a notice by that party to the other party complying with the terms of this Section.

 

(b)                                 So long as JPMCB or any of its Affiliates is the Agent, materials required to be delivered pursuant to Section 9.1(a) and (b) shall be delivered to the Agent in an electronic medium in a format acceptable to the Agent and the Banks.  The Borrower agrees that the Agent may make such materials, as well as any other written information, documents, instruments and other material relating to the Borrower, any of its subsidiaries or any other materials or matters relating to this Agreement, the Revolving Notes or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Banks by posting such notices on Intralinks or a substantially similar electronic system (the “Platform”).  The Borrower acknowledges that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each expressly disclaims liability for errors or omissions in the Communications or the Platform.  No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by the Agent or any of its Affiliates in connection with the Platform.

 

(c)                                  Each Bank agrees that notice to it (as provided in the next sentence) (a “Notice”) specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Bank for purposes of this Agreement; provided that if requested by any Bank the Agent shall deliver a copy of the Communications to such Bank by email or telecopier.  Each Bank agrees (i) to notify the Agent in writing of such Bank’s e-mail address to which a Notice may be sent by electronic transmission (including by electronic communication) on or before the date such Bank becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such Bank) and (ii) that any Notice may be sent to such e-mail address.

 

12.10                 Indemnification by the Borrower.

 

The Borrower hereby agrees to indemnify and hold harmless the Agent and each Bank, as well as their agents, employees, officers and directors (collectively, the “Indemnified Parties” and individually an “Indemnified Party”) from and against any and all losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs, disbursements, or expenses (including reasonable attorneys’ fees and expenses) of any kind or nature whatsoever, which are imposed on, incurred by, or asserted against an Indemnified Party in any way relating to or arising out of this Agreement or the other Loan Documents; provided, however, that the Borrower shall not be liable for any portion of any such losses, liabilities (including liabilities for penalties), actions, suits, judgments, demands, damages, costs,

 

43

 

disbursements, or expenses to the extent resulting from (i) an Indemnified Party’s failure to perform its obligations under this Agreement, or (ii) any negligence, gross negligence or willful misconduct of an Indemnified Party.  In the case of an investigation, litigation or other proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by the Borrower, any of its directors, security holders or creditors, an Indemnified Party or any other person or an Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated.

 

No Indemnified Party shall have any liability (whether in contract, tort or otherwise) to the Borrower or any of its security holders or creditors for or in connection with the transactions contemplated hereby, except to the extent such liability is determined in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s negligence, gross negligence or willful misconduct.  In no event, however, shall any Indemnified Party be liable on any theory of liability for any special, indirect, consequential or punitive damages (including, without limitation, any loss of profits, business or anticipated savings).

 

12.11                 Customer Identification - USA Patriot Act Notice.

 

Each Bank and the Agent (for itself and not on behalf of any other party) hereby notifies the Borrower that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Bank or the Agent, as applicable, to identify the Borrower in accordance with the Act.  The Borrower agrees to promptly provide such information upon request.

 

12.12                 Execution in Counterparts.

 

This Agreement and the other Loan Documents may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Agreement or such other Loan Document, as the case may be, taken together, shall constitute but one and the same instrument.

 

12.13                 Waiver of Jury Trial.

 

THE BORROWER, THE AGENT AND THE BANKS HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, THE REVOLVING NOTES AND ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIPS ESTABLISHED HEREUNDER.

 

12.14                 Jurisdiction.

 

The Borrower hereby irrevocably and unconditionally submits to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or

 

44

 

relating to this Agreement or any of the other Loan Documents, and the Borrower hereby irrevocably and unconditionally agrees that all claims in respect of such action or proceeding may be heard and determined in such state or federal court.  The Borrower hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding.  The Borrower irrevocably consents to the service of copies of the summons and complaint and any other process which may be served in any such action or proceeding by the mailing of copies of such process to the Borrower at its address referred to in Section 12.9.  The Borrower agrees that a final judgment in any such action or proceeding may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Section 12.14 shall affect the right of the Agent or any Bank to serve legal process in any other manner permitted by law or affect the right of the Agent or any Bank to bring any action or proceeding against the Borrower or its property in the courts of other jurisdictions.

 

12.15                 Substitution of Currency.

 

If a change in any Committed Currency occurs pursuant to any applicable law, rule or regulation of any governmental, monetary or multi-national authority, this Agreement (including, without limitation, the definitions of LIBO Base Rate) will be amended to the extent determined by the Agent (acting reasonably and in consultation with the Borrower) to be necessary to reflect the change in currency and to put the Banks and the Borrower in the same position, so far as possible, that they would have been in if no change in such Committed Currency had occurred.

 

12.16 No Fiduciary Relationship.

 

The Borrower acknowledges that the Banks have no fiduciary relationship with, or fiduciary duty to, the Borrower arising out of or in connection with this Agreement or the other Loan Documents, and the relationship between each Bank and the Borrower is solely that of creditor and debtor.  This Agreement and the other Loan Documents do not create a joint venture among the parties hereto.

 

12.17 Waiver of Prior Notice under Existing Credit Agreement.

 

Each of the Borrower and the Banks that are parties to the Existing Credit Agreement, which Banks constitute the “Required Banks “ under and as defined in the Existing Credit Agreement, hereby waive any requirement that notice of the termination of the commitments and prepayment in full of the amounts owing thereunder be delivered in advance of such termination or prepayment and agree that, on the Effective Date, the Existing Credit Agreement shall be amended and restated in full as set forth herein.

 

45

 

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.

 

	
Address:
    	
3M   COMPANY
    
	
Building   224-5S-26, 3M Center
    	
 
    	
 
    
	
St.   Paul, MN 55144-1000
    	
 
    	
 
    
	
Attention:   Scott D. Krohn
    	
By
    	
/s/   Scott D. Krohn
    
	
E-Mail: sdkrohn@mmm.com
    	
 
    	
Name:   Scott D. Krohn
    
	
Telecopier   (651) 737-0010
    	
 
    	
Title:   Vice President & Treasurer
    

 

Signature Page to 3M Company Credit Agreement

 

 

 

 

	
Commitment:   $200,000,000
    	
JPMORGAN   CHASE BANK, N.A., as Agent and as Bank
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
 
    
	
JPMorgan   Loan Services
    	
By
    	
/s/   Matthew H. Massie
    
	
1111   Fannin Street, 10th Floor
    	
 
    	
Name:  Matthew H. Massie
    
	
Houston,   Texas 77002
    	
 
    	
Title:  Managing Director
    
	
 
    	
 
    	
 
    
	
Primary Operations Contact:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Maria A Saez
    JPMorgan Loan Services
   1111 Fannin Street, 10th Floor

Houston,   Texas 77002

e-mail:   Maria.A.Saez@jpmorgan.com

Tel:   713-750-7941

Fax:   713-750-2956

 

London Sub-Agent:

 

J.P.   Morgan Europe Limited

125   London Wall, 9th Floor

London,   EC2Y5AJ

 

Primary Operations Contact:

 

Sue Dalton

J.P.   Morgan Europe Limited

125   London Wall, 9th Floor

London,   EC2Y5AJ

sue.r.dalton@jpmorgan.com,

Tel:   44 (0) 20 77772434

Fax: 44 (0) 20 77772360

 

Credit   Contact:

Gene   R. Riego de Dios

JPMorgan   Chase Bank, N.A.

383   Madison Avenue, Floor 24

New   York, New York 10179

E-mail: gene.r.riegodedios@jpmorgan.com

Tel:   212-270-2348

Fax:   212 270-5100
    	
 
    	
 
    

 

 

	
Commitment:   $200,000,000
    	
CITIBANK,   N.A.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
233   S. Wacker Drive, 86th Floor
    	
By
    	
/s/   Susan M. Olsen
    
	
Chicago, IL   60606
    	
 
    	
Name:  Susan M. Olsen
    
	
Attention: Patrick Hartweger
   E-Mail:  Patrick.hartweger@citigroup.com

Telecopier (312) 876-3290
    	
 
    	
Title:  Vice President
    

 

 

	
Commitment:   $160,000,000
    	
DEUTSCHE BANK AG NEW YORK BRANCH
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
60   Wall Street
    	
By
    	
/s/   Ming K. Chu
    
	
New   York, NY 10005
    	
 
    	
Name:  Ming K. Chu
    
	
Attention:    Lee Joyner
    	
 
    	
Title:  Vice President
    
	
E-Mail:    loan.admin-NY@db.com
    	
 
    	
 
    
	
Telecopier:  866-240-3622 
    	
By
    	
/s/   Heidi Sandquist
    
	
 
    	
 
    	
Name:  Heidi Sandquist
    
	
 
    	
 
    	
Title:  Director
    

 

 

	
Commitment:   $90,000,000
    	
BANK   OF AMERICA, N.A.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
2001   Clayton Road
    	
By
    	
/s/   Nicholas Cheng
    
	
Concord,   CA 94519
    	
 
    	
Name:  Nicholas Cheng
    
	
Attention:  Puneet Kashyap / Anna M. Finn
   E-Mail:    Puneet.kashyap@bankofamerica.com /

Anna.m.finn@baml.com

Telecopier:  312-453-5522 /

888-969-9238   
    	
 
    	
Title:   Vice President 
    

 

 

	
Commitment:   $90,000,000
    	
GOLDMAN SACHS BANK USA
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
200   West Street
    	
By
    	
/s/ Mark Walton
    
	
New   York, NY 10282
    	
 
    	
Name:    Mark Walton
    
	
Attention:  Operations Contact
   E-Mail:
   Telecopier:  917-977-3966
    	
 
    	
Title:  Authorized Signatory
    

 

 

	
Commitment:   $45,900,000
    	
MORGAN   STANLEY BANK, N .A.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
One   Utah Center
    	
By
    	
/s/   Michael King
    
	
201   South Main Street, 5th Floor
    	
 
    	
Name:  Michael King
    
	
Salt   Lake City, Utah 84111
   Attention:  Morgan Stanley Loan   Servicing
   E-Mail: msloanservicing@morganstanley.com
   Telecopier: 718-233-2140
    	
 
    	
Title:    Authorized Signatory
    

 

 

	
Commitment:   $44,100,000
    	
THE   BANK OF TOKYO-MITSUBISHI UFJ, LTD.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
1251   Avenue of the Americas
    	
By
    	
/s/   Christine Howatt
    
	
New   York, NY  10020
    	
 
    	
Name:  Christine Howatt
    
	
Attention:
   E-Mail:
   Telecopier: 
    	
 
    	
Title:  Authorized Signatory
    

 

 

	
Commitment:   $90,000,000
    	
UBS   LOAN FINANCE LLC
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
677   Washington Boulevard
    	
By
    	
/s/   Irja R. Otsa
    
	
Stamford,   CT 06901
    	
 
    	
Name:  Irja R. Otsa
    
	
Attention:   Samantha Mason
    	
 
    	
Title:  Associate Director
    
	
E-Mail: samantha.mason@ubs.com
    	
 
    	
 
    
	
Telecopier   (203) 719-3390
    	
By
    	
/s/   David Urban
    
	
 
    	
 
    	
Name:  David Urban
    
	
 
    	
 
    	
Title:  Associate Director
    

 

 

 

	
Commitment:   $90,000,000
    	
BARCLAYS   BANK PLC
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
745   7th Avenue
    	
By
    	
/s/   Diane Rolfe
    
	
New   York, NY 10019
    	
 
    	
Name:  Diane Rolfe
    
	
Attention:  Vincent Cangiano / Gemma Dizong
   E-Mail:    xraGSULoanTradingSet@barclayscapital.com /

Gemma.dizon@barcap.com

Telecopier:  212-412-7401
    	
 
    	
Title:  Director
    

 

 

	
Commitment:   $70,000,000
    	
THE   BANK OF NEW YORK MELLON
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
One   Wall Street
    	
By
    	
/s/   John T. Smathers
    
	
New   York, NY 10286
    	
 
    	
Name:  John T. Smathers
    
	
Attention:  Elaine Flanagan

E-Mail:  Elaine.flanagan@bnymellon.com

Telecopier:  315-765-4537
    	
 
    	
Title:  First Vice President
    

 

 

	
Commitment:   $70,000,000
    	
SOVEREIGN   BANK N.A.
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
601   Penn Street
    	
By
    	
/s/   William Maag
    
	
Reading,   PA  19602
    	
 
    	
Name:  William Maag
    
	
Attention:  Stephanie Macri

E-mail:  Participations@Sovereignbank.com

Telecopier:    484-338-2831
    	
 
    	
Title:  Senior Vice President
    

 

 

	
Commitment:   $70,000,000
    	
HSBC   BANK USA, NATIONAL ASSOCIATION
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
452   Fifth Avenue
    	
By
    	
/s/   Patrick D. Mueller
    
	
New   York, NY 10018
    	
 
    	
Name:   Patrick D. Mueller
    
	
Attention:    Seema Sodha

E-Mail:

Telecopier:  917-229-0973
    	
 
    	
Title:  Director
    

 

 

	
Commitment:   $70,000,000
    	
THE   NORTHERN TRUST COMPANY
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
50   South LaSalle Street
    	
By
    	
/s/   Molly Drennan
    
	
Chicago, IL   60603
    	
 
    	
Name:  Molly Drennan
    
	
Attention:  Joseph Christy / Sharon Jackson

E-Mail:  jjc13@ntrs.com / smj@ntrs.com

Telecopier:  312-630-1566
    	
 
    	
Title:  Vice President
    

 

 

	
Commitment:   $70,000,000
    	
SUMITOMO   MITSUI BANKING CORPORATION
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
277   Park Avenue
    	
By
    	
/s/   Shuji Yabe
    
	
New   York, NY 10172
    	
 
    	
Name:  Shuji Yabe
    
	
Attention:    Robert Gruss

E-Mail:    Robert_C_Gruss_Jr@smbcgroup.com

Telecopier:  212-224-5197
    	
 
    	
Title:  Managing Director
    

 

 

	
Commitment:   $70,000,000
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
Eleven   Madison Avenue
    	
By
    	
/s/   John D. Toronto
    
	
New   York, NY  10010
    	
 
    	
Name:  John D. Toronto
    
	
Attention:  John Toronto
    	
 
    	
Title:  Managing Director
    
	
E-Mail: john.toronto@credit-suisse.com
    	
 
    	
 
    
	
Telecopier   212 743-2144
    	
By
    	
/s/   Vipul Dhadda
    
	
 
    	
 
    	
Name:  Vipul Dhadda
    
	
 
    	
 
    	
Title:  Associate
    

 

 

	
Commitment:   $70,000,000
    	
INDUSTRIAL AND COMMERCIAL
   BANK OF CHINA LIMITED, NEW YORK BRANCH
    
	
Address:
    	
 
    	
 
    
	
725   Fifth Avenue 20th Floor
    	
 
    	
 
    
	
New   York, NY  10019
    	
By
    	
/s/   Mr. Qing Hong
    
	
Attention:   Kan Chen
    	
 
    	
Name:  Mr. Qing Hong
    
	
E-Mail: kan.chen@icbkus.com

Telecopier   (212) 796-1991
    	
 
    	
Title:  Assistant General Manager
    

 

 

 

EXHIBITS

 

	
Exhibit A
    	
 
    	
Conditions   Precedent
    
	
 
    	
 
    	
 
    
	
Exhibit B
    	
 
    	
Representations and Warranties
    
	
 
    	
 
    	
 
    
	
Exhibit C
    	
 
    	
Form of Revolving Note
    
	
 
    	
 
    	
 
    
	
Exhibit D
    	
 
    	
[Reserved]
    
	
 
    	
 
    	
 
    
	
Exhibit E
    	
 
    	
Form of Compliance Certificate
    

 

 

Exhibit A

 

CONDITIONS PRECEDENT

 

1.             A Revolving Note to the order of the Banks to the extent requested by any Bank pursuant to Section 2.8.

 

2.             Authorization

 

(a)                                 A certified copy of resolutions of the Borrower’s board of directors authorizing the execution of this Agreement and all related documents.

 

(b)                                 A certificate of the Borrower’s corporate secretary as to the incumbency and signatures of the officers of the Borrower signing this Agreement.

 

3.             Organization

 

(a)                                 A certified copy of the Borrower’s Articles of Incorporation and By-Laws.

 

(b)                                 A Certificate of Good Standing issued by the Secretary of the State of the state of the Borrower’s incorporation dated not more than 30 days prior to the date hereof.

 

4.                                      An opinion of counsel to the Borrower, opining as to the due authorization, execution, delivery and enforceability of the Loan Documents and such other matters as the Agent may require.

 

A-1

 

Exhibit B

 

REPRESENTATIONS AND WARRANTIES

 

Corporate Status.  The Borrower is a corporation duly formed and in good standing under the laws of the jurisdiction of its organization.

 

Authorization.  The execution, delivery and performance of this Agreement are within the Borrower’s powers, have been duly authorized, and do not conflict with the articles or bylaws of the Borrower, any agreement by which the Borrower is bound or any court, administrative or other ruling by which the Borrower is bound.

 

Financial Reports.  The Borrower has provided the Banks with its annual audited financial statement as of December 31, 2011 and its quarterly unaudited financial statement as of June 30, 2012.  These statements fairly represent the financial condition of the Borrower as of their respective dates and were prepared in accordance with GAAP.  There has been no material adverse change in the consolidated financial condition of the Borrower after the date of those statements.

 

Material Adverse Change.  Since December 31, 2011, except as disclosed in the quarterly unaudited financial statement as of June 30, 2012, there has been occurred no event or circumstance that would individually or in the aggregate have a material adverse effect on the consolidated financial condition or operations of the Borrower.

 

Litigation.  Except as disclosed in the Borrower’s Annual Report on Form 10-K for the year ended December 31, 2011 and in the Borrower’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, each as filed with the Securities and Exchange Commission (“SEC”), there are no legal or governmental proceedings pending or, to the best of the Borrower’s knowledge, threatened by governmental authorities or others, by which the Borrower is or may be bound, which, if determined adversely to the Borrower, would individually or in the aggregate have a material adverse effect on the consolidated financial condition or operations of the Borrower.

 

Taxes.  The Borrower has filed when due all federal, state and local tax returns and paid all amounts shown as due thereon, except for such amounts which are being contested in good faith by appropriate proceedings.

 

No Default.  There is no Default or Event of Default under this Agreement.

 

ERISA.  The Borrower is in compliance in all material respects with ERISA and has received no notice to the contrary from the PBGC or other governmental area.

 

Environmental Matters.  Except as disclosed in the Borrower’s Annual Report on Form 10-K for the year ended December 31, 2011 and in the Borrower’s Quarterly Report on Form 10-Q for the period ended June 30, 2012, each as filed with the SEC, to the best of the Borrower’s knowledge, the Borrower has not incurred, directly or indirectly, any material contingent liability in 

 

B-1

 

connection with (i) the release of any toxic or hazardous waste or substance into the environment or (ii) noncompliance with applicable environmental, health and safety statutes and regulations.

 

Insurance.  The Borrower is maintaining the insurance required by Section 9.2(c).

 

Legal Agreements.  This Agreement and the other Loan Documents constitute the legal, valid and binding obligations and agreements of the Borrower, enforceable against the Borrower in accordance with their respective terms, including against claims of usury, except to the extent that enforcement thereof may be limited by any applicable bankruptcy, insolvency or similar laws now or hereafter in effect affecting creditors’ rights generally.

 

Regulation U.  The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System), and no part of the proceeds of any Advance will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock.  After application of the proceeds of each Advance, not more than 25 percent of the value (as determined by any reasonable method) of the assets of the Borrower subject to any provision of this Agreement under which the sale, pledge or disposition of assets is restricted will consist of margin stock.

 

 

Exhibit C

 

REVOLVING NOTE

 

$____________________

 

_______________, 20_____

 

FOR VALUE RECEIVED, 3M Company, a Delaware corporation (the “Borrower”), promises to pay to the order of ______________________________ (the “Bank”), at such place as Agent under the Credit Agreement defined below may from time to time designate in writing, the principal sum of ______________________________ Dollars ($_______________), or, if less, the aggregate unpaid principal amount of all advances made by the Bank to the Borrower pursuant to Section 2.1 of the Amended and Restated Five Year Credit Agreement dated September 28, 2012 among the Borrower, JPMorgan Chase Bank, N.A., as Agent (in such capacity, the “Agent”), and various Banks, including the Bank (the “Credit Agreement”), and to pay interest on the principal balance of this Note outstanding from time to time at the rate or rates determined pursuant to the Credit Agreement.

 

This Note is issued pursuant to, and is subject to, the Credit Agreement, which provides (among other things) for the amount and date of payments of principal and interest hereunder, for the acceleration of this Note upon an Event of Default, for the determination of the Dollar Equivalent of Revolving Advances denominated in Committed Currencies and for the voluntary prepayment of this Note.  This Note is a “Revolving Note,” as defined in the Credit Agreement.

 

The Borrower shall pay all costs of collection, including reasonable attorneys’ fees and legal expenses, if this Note is not paid when due, whether or not legal proceedings are commenced.

 

Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

 

	
 
    	
3M   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Its
    	
 
    

 

 

C-1

 

Exhibit D

 

[Reserved]

 

 

D-1

 

Exhibit E

 

CERTIFICATE OF COMPLIANCE

 

In accordance with the Amended and Restated Five Year Credit Agreement dated as of September 28, 2012, by and among JPMorgan Chase Bank, N.A., as agent for the Banks, 3M Company (the “Borrower”) and the Banks, as such Credit Agreement has been or may hereafter be amended from time to time, attached are the consolidated financial statements for the Borrower for the period ending _______________, 20_____ (the “Effective Date”).

 

I certify that the financial statements have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with those applied in the annual financial statements.  I also certify that as of the Effective Date, the Borrower is in compliance with the covenants stated in the Credit Agreement.

 

I further certify that the Borrower’s EBITDA to Interest Ratio, as defined in the Credit Agreement, as of the Effective Date is as set forth below:

 

	
(a)
    	
EBITDA
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
(b)
    	
Interest
    	
 
    	
 
    	
$
    	
 
    	
 
    	
 
    
	
EBITDA   to Interest Ratio [(a)/(b)]
    	
 
    	
 
    	
 
    	
 
    	
_____ to 1
    
	
Minimum   Permitted EBITDA to Interest Ratio
    	
 
    	
 
    	
 
    	
 
    	
3.0 to 1
    

 

Furthermore, I have no knowledge of the occurrence of an Event of Default under the Credit Agreement or of any event which with notice of lapse of time would constitute an Event of Default, except those specifically stated below.

 

	
 
    	
3M   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    	
Its
    	
 
    

 

E-1Exhibit 10.1

 

LEASE DEED

 

THIS LEASE DEED (‘Lease Deed’) is  made at Chennai on this 29th day of September 2012.

 

BY AND BETWEEN

 

M/s DLF Assets Private Limited, a Company  incorporated under the Companies Act, 1956 and having its registered office at 1-E, Jhandewalan Extension, Naaz Cinema Complex, New Delhi — 110 055 (hereinafter referred to as “THE LESSOR” which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) acting through its signatory, Mr. Amit Grover authorized vide Board Resolution dated 16.04.2009 of the First Part.

 

AND

 

M/s Virtusa India Pvt. Ltd., a company incorporated under the  Companies Act, 1956, and presently having its office in India at 6-3-1192, 1st Floor, My Home Tycoon, Begumpet, Hyderabad — 500016 (hereinafter referred to as ‘THE LESSEE’ which expression shall, unless it be repugnant to the context or meaning thereof, be deemed to mean and include M/s Virtusa India Pvt. Ltd. and its successors) having Permanent Account Number AABCV4077E and Tax Deduction and Collection Account Number HYDE00367DF, acting through its authorized signatory Mr. Neeraj Dutt vide Board Resolution dated 14.04.2012of the Second Part.

 

1

 

(Both THE LESSOR and THE LESSEE are collectively referred to as “the Parties”).A.

 

WHEREAS DLF Info City Developers (Chennai) Limited, as owners of the said Plot described in Annexure III (a) of this Lease Deed, has been granted approval for and notified as Developers at SEZ situated at Chennai (SEZ unit) vide notification F-2/124/2006-SEZ dated 16th November, 2006 and approval letter No. F-2/124/2005- EPZ dated 22nd June, 2006.

 

B.                                    AND WHEREAS subsequently DLF Info City Developers (Chennai) Limited has  executed Co-Development Agreement dated 29th November, 2006 for the purpose of development of the said SEZ unit with THE LESSOR  as well as a perpetual lease of the said Plot in favour of THE LESSOR.

 

C.                                   AND WHEREAS the Govt. of India, Ministry of Commerce and Industry, Department of Commerce, SEZ Section vide their letter No. F 2 / 124 / 2005 - EPZ dated 14th February, 2007 has also approved THE LESSOR as a Co-Developer of the said SEZ unit.

 

D.                                    AND WHEREAS THE LESSOR is constructing multi-storeyed buildings comprising of approx. 10 blocks with basements and named as ‘DLF IT Park @ Chennai’ (hereinafter referred to as the “said Complex”) in accordance with the building plans as shall be approved by the Chennai Metropolitan Development Authority (CMDA) or from such other authorities as may be needed to form the same as a Special Economic Zone under the rules framed by the Government of India from time to time for its approval.

 

E.                                     AND WHEREAS THE LESSOR is seized and possessed of the said Plot and the buildings to be constructed thereon, as per the Master Plan to be approved by the Chennai Metropolitan Development Authority (CMDA) and such other authorities as may be required and THE LESSOR being competent to lease office spaces in the said Complex on the said Plot has agreed to give on lease, office space in Block 10 (hereinafter referred to as the “said Building”) as per detailed terms stipulated in this Lease Deed and Annexures from I to XIII forming part of this Lease Deed.

 

F.                                      AND WHEREAS THE LESSEE being in need of premises approximately 73,650 sq. ft. (approx. 6,842.252 sq. mtrs.) comprising of approx. 29,218 sq.ft. (approx 2,714.418 sq. mtrs.) as Phase I and approx. 44,432 sq.ft. (approx. 4,127.834 sq. mtrs.) as Phase II in Block 10 (hereinafter referred to as the “Demised Premises”) to house its offices, has sought from THE LESSOR a lease of the office space in the said Building being constructed in the said Complex having a total area admeasuring approx. 7,039,168 sq. ft. more or less at site as described in Annexure III, from the Lease Commencement Dates of the respective phases, as per the terms stipulated herein.

 

G.                                   AND WHEREAS based on the above representations made by THE LESSOR and after due inspection and verification of the said Plot, said Building, ownership record of the said Plot, building and other documents relating to the title, competency and all other relevant details, THE LESSEE is satisfied in all respects with regard to the right, title and authority of THE LESSOR to enter into this Lease Deed.

 

H.                                  AND WHEREAS THE LESSOR when permits THE LESSEE to carry out the interior works in the Demised Premises of the respective phases, THE LESSEE, agrees to pay THE LESSOR at 1.2 times of the actual cost of electricity, water, charges for security services and other direct expenses incurred by THE LESSOR on account of THE LESSEE during the fit out period.  In the event the building is already operational and THE LESSEE is carrying out the fit out works but does not utilize the central air-conditioning for the Demised Premises during the fit-out period; THE LESSEE shall be liable to pay fifty percent of the normal maintenance charges for the same in addition to the power consumed in the Demised Premises on Cost + 20% basis.

 

2

 

THE LESSEE hereby confirms that it shall carry out, implement and execute all interior works/designs of the Demised Premises in compliance/adherence with the approval/ guidelines issued by THE LESSOR from time to time for carrying out such interior works in the Demised Premises.

 

I.                                        THE LESSEE further confirms that it shall obtain/has obtained all pre-requisite sanctions, approvals, licences, from all the Statutory/Competent Authorities, which may be necessary for commencement of its business in the Demised Premises. Upon assurances of THE LESSEE that it shall strictly abide by the stipulations contained in this Deed, THE LESSOR has agreed to give on lease to THE LESSEE the Demised Premises on the terms and conditions recorded herein.

 

J.                                        On THE LESSEE’s behalf Mr. Neeraj Dutt, the authorised signatory of this Lease Deed, has negotiated the Lease Deed.

 

On THE LESSOR’s behalf the lease has been negotiated through Mr. Amit Grover, Director - Offices.

 

K.                                   AND WHEREAS both the Parties have agreed to enter into this Lease Deed on the terms and conditions stipulated in this Lease Deed and Annexures I to XIII annexed hereto:

 

NOW THEREFORE IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:-

 

1.              THE LESSOR hereby leases out to THE LESSEE and THE LESSEE takes on lease from the Lease Commencement Date i.e. 1st July, 2012 for Phase I and 1st October, 2012 for Phase II respectively (as specified in Annexure-II), an office space admeasuring an aggregate super built up area of 6,842.252 sq. mtrs (approx. 73,650 sq.ft.) on 5th Floor in Block 10 comprising of 29,218 sq. ft. (approx 2,714.418 sq. mtrs.) as Phase I and 44,432 sq. ft. (approx 4,127.834 sq. mtrs.) as Phase II (as shown in Annexure III(b) in DLF IT Park @ Chennai 1/124, Shivaji Gardens, Moonlight Stop, Nandambakkam, Mount Poonamallee Road, Manapakkam, Chennai- 600 089) as more detailed in Annexure — II  (hereinafter referred to as the “Demised Premises”), the area calculations for  which are defined in Annexure —  IV to this Lease Deed, and also obtains the right to use only the common areas in the said Building/said Plot to be used by THE LESSEE together with other occupants in the said Building and the right to park cars in terms of this Lease Deed, in the car /two wheeler parking spaces earmarked in the basement(s)/stilt/surface/mechanical car /two wheeler parking spaces by THE LESSOR.

 

2.              The rent as specified in this Lease Deed shall commence from the Date of Rent Commencement of the respective phases as specified in Annexure — II.

 

The car /two wheeler parking space charges, maintenance and other charges as specified in this Lease Deed shall commence from the Date of Rent Commencement of the respective phases as specified in Annexure —II.

 

The detailed calculations of rent, car/ two wheeler parking space charges & security deposits payable of the respective phases by THE LESSEE during the period of this lease are given in Annexure — V to this Lease Deed.

 

3.              THE LESSEE confirms that THE LESSEE shall not terminate the Lease Deed during the Lock-in Period of Thirty Six (36) months from the Lease Commencement Dates of the respective phases, as mentioned in Annexure II of this Lease Deed.  However, THE LESSEE can terminate the Lease Deed, without cause, at any time after the expiry of Thirty (30) months from the Lease Commencement Dates of the respective phases by giving prior notice in writing or payment of rent and other dues in lieu of the notice to THE LESSOR as per the notice period of Six (06) months mentioned in Annexure — II. In the event of THE LESSEE terminating the Lease Deed before the 

 

3

 

expiry of Lock- in- period, THE LESSOR shall also be entitled to payment of rent, car /two wheeler parking space charges,  maintenance charges, taxes and any other charges payable under the lease deed etc., if any, for the entire unexpired period of the Lock- in- period, from THE LESSEE and THE LESSEE undertakes to pay the said charges without any objections whatsoever. The lock-in period shall also be applicable to car /two wheeler parking spaces.

 

THE LESSEE agrees that if THE LESSOR is constrained by the acts of THE LESSEE which involve breaches / defaults of the Lease Deed or if THE LESSEE or its bankers have dishonored the cheque(s) made in payment of various sums due under the Lease Deed and THE LESSEE failing to rectify the breach/ default within 15 (Fifteen) days  of intimation from THE LESSOR of such dishonour of cheque(s), THE LESSOR shall be vested with  a specific right to terminate this Lease Deed and claim outstanding arrear of rent, maintenance charges, car /two wheeler parking charges, signage charges, taxes and other charges payable under the Lease Deed including the rent for the unexpired lock-in-period and THE LESSEE hereby undertakes to pay the said sums without any demur or protest whatsoever and will not raise any claims or disputes in this regard.

 

THE LESSOR’s right of terminating this Lease Deed shall be as contained in this Clause and Clause 58 of the Annexure — I appended to the Lease Deed.

 

4.              THE LESSEE agrees, that in consideration of THE LESSOR granting the right to use car/ two wheeler parking spaces as mentioned in Annexure — II earmarked in the basement(s)/surface/mechanical car/ two wheeler parking spaces (plan attached as Annexure —VII to this Lease Deed) to perform all its obligations under this Lease Deed pertaining to use of car/ two wheeler parking spaces. The lock-in period shall also be applicable to car /two wheeler parking spaces.

 

5.              THE LESSEE shall not have the right to terminate this Lease Deed and vacate the Demised Premises until the expiry of the Lock in period as mentioned in Annexure — II starting from the Date of Lease Commencement of the respective phases. However after expiry of the Lock in period, THE LESSEE may terminate the Lease Deed by giving Six (06) months advance written notice or making the payments due in lieu of such notice period. On such termination, within 15 days of THE LESSEE paying all its dues under this Lease Deed and delivering peaceful, vacant and physical possession of the Demised Premises, THE LESSOR shall refund all the refundable security deposits without any interest thereon under this Lease Deed deposited by THE LESSEE only after adjusting outstanding dues, if any.

 

THE LESSEE shall have an option to renew the Lease Deed of the respective phases for such term as mentioned in Annexure — II by giving advance notice in writing six (6) months’ prior to the expiry of the first term of the Lease Deed. THE LESSOR may pursuant to the notice of renewal received by THE LESSOR, execute and cause the renewed Lease Deed to be registered, at the cost of THE LESSEE, and the renewed Lease Deed shall be, to the extent possible, on the same lines hereof except only that the rent (and correspondingly, the security deposits and signage charges if any) shall be enhanced as mentioned in Annexure — II. Subject to clauses contained herein, till the time Lease Deed is renewed THE LESSEE will continue to pay rental at escalated rate and THE LESSOR will send the invoices at such escalated rate, as mentioned in Annexure II of this Lease Deed. There shall be no lock in period during the renewal term of the Lease Deed, however advance written notice of six (06) months for termination by THE LESSEE shall be applicable as under the initial Lease Deed.

 

THE LESSEE agrees that in case THE LESSEE terminates the Lease Deed prior to the expiry of Lock- in -period as mentioned in Annexure — II to this Lease Deed, then THE LESSEE hereby authorizes THE LESSOR to deduct from the deposits lying with THE LESSOR, the entire rent, car/ two wheeler parking charges, maintenance charges, taxes  and any other sums due and payable under this Lease Deed for the unexpired period of the Lock- in- period of the respective phases and such other sums due and payable under this Lease Deed as on that date. Further, THE 

 

4

 

LESSEE undertakes to pay the balance, if any, remaining after such adjustments, deductions on or before the expiry of notice of termination or termination by THE LESSOR for breach of terms and conditions contained in the Lease Deed by THE LESSEE.

 

In the event THE LESSEE terminates the Lease Deed prior to the expiry of lease tenure and has also availed any rent free period of the respective phases (period between the Lease Commencement Dates and Rent Commencement Dates of the respective phases) during the lease tenure, an amount equivalent to the proportionate rent free period extended for the unexpired lease tenure shall be refunded by THE LESSEE to THE LESSOR or deducted from the deposits lying with THE LESSOR.

 

6.              Within 15 days of THE LESSEE paying all its dues under this Lease Deed and delivering peaceful, vacant and physical possession of the Demised Premises on or before the last day of the validity of the Lease Deed, THE LESSOR shall refund all the refundable security deposits without any interest thereon under this Lease Deed deposited by THE LESSEE only after adjusting outstanding dues, if any.

 

7.              The Lease Deed along with the Annexures annexed hereto constitutes the entire agreement between the Parties and revokes and supersedes all previous discussions written or oral, correspondence, MOU and/or any deeds between the Parties.  This Lease Deed shall not be changed or modified except by written amendment duly agreed and signed by the Parties.

 

8.              That this Lease Deed is executed and registered in two sets i.e. Original and Duplicate. The original Lease Deed duly executed and registered in terms of this Lease Deed shall be retained by THE LESSEE and the Duplicate copy of the Lease Deed shall be retained by THE LESSOR.  The original Lease Deed shall be produced by THE LESSEE as and when required by THE LESSOR.

 

9.              Failure of either Party to enforce at any time or for any period of time the provisions hereof shall not be construed to be waiver of any provisions or of the right thereafter to enforce each and every provision hereof.

 

10.       THE LESSOR shall not be held responsible for any consequences or liabilities under this Lease Deed if it is prevented in performing its obligations under the terms of this Lease Deed by reason of laws or regulations, action by any local body or authority, local or otherwise, riots, insurrection, war, terrorist action, acts of God and unforeseen circumstances beyond its control. The performance of THE LESSOR’s obligation under this Lease Deed shall be subject to the regular payment of rent including other payments as stipulated in this Lease Deed.

 

11.       The disputes or differences between THE LESSEE and THE LESSOR pertaining to performance of the terms and conditions of this Agreement shall, so far as possible, be settled amicably through consultation between authorised representatives of the Parties. If after 15 days of consultation the Parties fail to reach an amicable settlement on the disputes or differences pertaining to the performance of this Agreement, such disputes or differences shall be submitted to Arbitration for final adjudication. Reference to arbitration shall be in accordance with the provisions of the Arbitration and Conciliation Act, 1996 and/or any statutory modifications thereto by an Arbitral Tribunal consisting of three arbitrators.  Each Party shall appoint its nominee arbitrator and both the appointed nominee arbitrators shall appoint third arbitrator, who shall be the Presiding Arbitrator. If the nominee arbitrators fail to reach a consensus on the Presiding Arbitrator, the parties shall approach the Court for appointment of a Presiding Arbitrator. The decision of the Presiding Arbitrator shall be final and binding upon the Parties.

 

During the arbitration proceedings, both THE LESSEE and THE LESSOR shall continue to fulfill their obligations under the Lease Deed.

 

5

 

The Civil Courts and High Court at Chennai, alone shall have jurisdiction for the purposes of this agreement.

 

12.       That this Lease Deed and the rights and obligations of the Parties under or arising out of this Lease Deed be construed and enforced in accordance with the laws of India.

 

The terms and conditions agreed between THE LESSOR and THE LESSEE containing interalia a) covenants and conditions to be observed and performed by THE LESSEE, and b) covenants and conditions to be observed and performed by THE LESSOR, are as per   Annexures I to XIII of this Lease Deed. These Annexures I to XIII shall form an integral part of this Lease Deed and shall be binding on THE LESSOR and THE LESSEE.

 

THE LESSOR M/s DLF Assets Private Limited through its Authorized Signatory Mr. Amit Grover authorized to execute Lease Deeds etc. has executed this Lease Deed. This Lease Deed will be presented for registration before the Registering Authority and got registered by Mr. Ernest David, who has been authorized vide Power of Attorney dated 18.03.2008 of the company to appear before the Registering Authority and present for registration, acknowledge and get registered the Deed executed by Mr. Amit Grover on behalf of THE LESSOR.

 

IN WITNESS WHEREOF the Parties hereto have set their hands to these presents on the day, month and year first and above mentioned.

 

THE LESSOR:

 

SIGNED AND DELIVERED on behalf of the above named DLF Assets Private Limited acting through Mr. Amit Grover, its Authorized Signatory:

 

In the presence of:

 

	
 
    	
For and on behalf of
    
	
WITNESSES:
    	
DLF   Assets Private Limited
    
	
 
    	
 
    
	
1.
    	
/s/   Amit Grover
    
	
 
    	
 
    
	
 
    	
(Amit Grover)
    
	
 
    	
AUTHORIZED   SIGNATORY
    
	
2.
    	
 
    

 

THE LESSEE:

 

SIGNED AND DELIVERED on behalf of the above named Virtusa India Pvt. Ltd.  acting through Mr. Neeraj Dutt, its Authorized Signatory:

 

In the presence of:

 

	
WITNESSES
    	
 
    
	
 
    	
For and on behalf of
    
	
1.
    	
Virtusa India Pvt. Ltd.
    
	
 
    	
 
    
	
 
    	
/s/ Neeraj Dutt
    
	
2.
    	
 
    
	
 
    	
(Neeraj Dutt)
    
	
 
    	
AUTHORIZED SIGNATORY
    

 

6

 

	
ANNEXURES
    
	
 
    	
 
    	
 
    
	
I
    	
-
    	
Detailed   Terms and Conditions between THE LESSOR and THE LESSEE
    
	
 
    	
 
    	
 
    
	
II
    	
-
    	
Commercial   Terms and Conditions
    
	
 
    	
 
    	
 
    
	
III
    	
-
    	
Description   of the Plot
    
	
 
    	
 
    	
 
    
	
IV
    	
-
    	
Super   Built-up area calculations
    
	
 
    	
 
    	
 
    
	
V (a) & (b) 
    	
-
    	
Statement   of rent, Interest Free Refundable Security Deposit, Interest Free   Refundable Maintenance Security Deposit and Car/ Two Wheeler parking space   charges payable by THE LESSEE to THE LESSOR during the lease period of the   respective phases.
    
	
 
    	
 
    	
 
    
	
VI
    	
-
    	
Monthly   Maintenance and service expenditure (Indicative)
    
	
 
    	
 
    	
 
    
	
VII
    	
-
    	
Car/   Two Wheeler parking spaces earmarked for use by THE LESSEE for both phases
    
	
 
    	
 
    	
 
    
	
VIII
    	
-
    	
Tentative   Building Specifications
    
	
 
    	
 
    	
 
    
	
IX
    	
-
    	
Handover   of Demised Premises for Occupation
    
	
 
    	
 
    	
 
    
	
X
    	
-
    	
THE   LESSEE’s responsibility during interior fit-outs work, additions/modifications/alterations   of interior works and during the Lease Tenure/Lease Renewal and operations   during the lease period/ lease renewal
    
	
 
    	
 
    	
 
    
	
XI (a) 
    	
-
    	
Charges   for Power
    
	
 
    	
 
    	
 
    
	
XI (b) 
    	
-
    	
Charges   for Maintenance
    
	
 
    	
 
    	
 
    
	
XII
    	
-
    	
Merger   and Amalgamation Undertaking
    
	
 
    	
 
    	
 
    
	
XIII
    	
-
    	
Electronic Clearing System Activation form
    

 

7

 

ANNEXURE-I

 

Terms and conditions forming an integral part of the Lease Deed dated                   between DLF Assets Private Limited and Virtusa Software Services Pvt. Ltd., while not derogating from the mutual promises set out therein:

 

TERMS AND CONDITIONS

 

1.                                               THE LESSOR shall charge and THE LESSEE shall pay an initial bare shell rent of Rs. 44.75/- (Rupees Forty Four and Paise Seventy Five only) per sq. ft. per month for the respective phases  as detailed in Annexure — II on the super built — up area of the Demised Premises to be paid fully without any and all deductions whatsoever save and except the deduction of tax at source, if applicable. The liability towards payment of Service Tax and other taxes as applicable on monthly rents for the respective phases shall be borne by THE LESSEE.

 

2.                                               THE LESSEE shall pay to THE LESSOR or its nominees/permitted assigns, by cheque / bank draft/ wire transfer payable as detailed in Annexure II of this Lease Deed the rent and all other sums payable under this Lease Deed. Payments to be done as per Annexure XIII. In case the Rent Commencement Date of the respective phases is other than the first of the month, in such case THE LESSEE shall pay Rent and other sum payable under the lease Deed in advance for the portion of the month i.e. from the Rent Commencement Date of the respective phases  to last day of the month and also for the following month.  Thereafter the rent and all other sums payable under this Lease Deed shall be paid on the 1st day of each calendar month (due date) but not later than the 7th day, in advance for the month in respect of which such sums are payable.

 

3.                                               The rent for the respective phases is exclusive of all the taxes. In addition to the rent payable for the Demised Premises as stipulated in this Lease Deed, THE LESSEE shall also be liable to bear and pay on its sole account  the entire part of any and all levies, duties, taxes on Demised Premises, land and building, charges, rates, cesses, fees, wealth-tax, penalties thereof (as attributable due to THE LESSEE’s default in making such payments) etc. imposed/demanded by the Central or the State Government / any local body and/or other authorities and all increases and/or fresh impositions thereof as applicable and attributable to the said Plot / said Building /  Demised Premises on and from the date of signing of the Lease Deed of the respective phases.

 

THE LESSEE shall also be liable to fulfill any and all procedural requirements as may be prescribed by the Central or the State Government/any local body/all other authorities in connection with the clause above.

 

4.                                               In the event, any such fresh imposition and/or increase as stated above in Clause 3 hereof is levied retrospectively, the liability of THE LESSEE shall relate only to the period on and from the Date of signing of the Lease Deed of the respective phases. The said amount shall be paid separately by THE LESSEE to THE LESSOR as indicated below in terms of this Lease Deed. All such fresh impositions and/or increases as above stated shall be paid by THE LESSEE to THE LESSOR within fifteen (15) days of written demand by THE LESSOR to THE LESSEE, giving details thereof duly supported with copies of the relevant documents, if any, from the Central or State Government/local body / any and all authorities, as the case may be. In the event any and all such levies, duties, taxes on property, charges, rates, cesses, fees, wealth-tax, penalties (as attributable due to THE LESSEE’s default in making such payments) etc., referred to above and/or such fresh imposition and/or increase is payable by THE LESSEE directly to the Central or State Government/local body/any and all authorities as the case may be, THE LESSEE shall pay the same directly immediately upon the same becoming due.  Any default made by THE LESSEE in complying with the terms of the clause under reference and clause 3, shall be entirely at the costs and consequences of THE LESSEE and 

 

8

 

THE LESSEE shall be liable for payment/s of penalties, outstanding dues arising there from.

 

5.                                               Power/ Electricity and Power back-up Charges:

 

THE LESSEE shall pay by due date the bills for consumption of power/ electricity in the Demised Premises of the respective phases as recorded in the meters or as demanded by THE LESSOR or its nominees or assigns. The power/electricity for the Demised Premises during interior works/lease tenure shall be supplied from Grid/ Utility Companies. However, in case of non availability of power/ electricity from grid/utility companies, THE LESSOR shall provide THE LESSEE with back up power from their diesel/gas based generators. The charges for such power/ electricity and back-up power will be as per Annexure XI (a).

 

A separate meter for recording power/ electricity consumption in the Demised Premises shall be provided by THE LESSOR for the supply of power/ electricity from normal grid/utility companies subject to availability of such power/ electricity. The cost of such meter shall be borne by THE LESSEE.

 

A separate meter shall be provided by THE LESSOR for recording consumption of power in the Demised Premises supplied through the back-up power. The cost of such meter shall be borne by THE LESSEE.

 

A separate meter shall be provided by THE LESSOR for recording consumption of power for the AHU(s) for the Demised Premises, supplied through grid/ utilities companies/ back-up power. The cost of such meter shall be borne by THE LESSEE.

 

Water Charges: THE LESSEE shall pay by due date the bills for consumption of water in the Demised Premises as recorded in the meters or as demanded by THE LESSOR or its nominees or assigns.

 

A separate meter for recording water consumption shall be provided in the Demised Premises by THE LESSOR. The cost of such meter including any deposit required shall be borne by THE LESSEE.

 

In case of there being common meter(s) for recording the consumption by THE LESSEE jointly with the other tenants or occupants of the said Building, THE LESSEE shall pay the proportionate cost of water calculated on the super built-up area of the Demised Premises.

 

6.                                               Maintenance Charges: At present various maintenance services, facilities and  amenities within the said Plot / said Building/Demised Premises and civic amenities in the said Complex where the Demised Premises/said Building are located are being maintained by THE LESSOR, or the nominees/ assigns of THE LESSOR.  Maintenance services are as set out in Annexure — VI to this Lease Deed, charges of which are payable to THE LESSOR or  nominees / assigns of THE LESSOR by THE LESSEE as per bills raised by THE LESSOR or  its nominees/assigns for the respective phases.

 

The maintenance charges for normal office hours/extra office hours/ 24*7 operations excluding Public and National Holidays shall be calculated at 1.2 times the actual expenditure being incurred payable from the Lease Commencement Date of the respective phases.  The maintenance charges will be as per Annexure XI (b).

 

Maintenance services on Public & National Holidays can only be provided if THE LESSEE gets the requisite approval from the local administration/ competent authority(ies) and not otherwise.

 

The maintenance charges shall be subject to deduction of Income Tax at source as applicable, from time to time. Additional charges towards Service Tax (es) and

 

9

 

other taxes as applicable on maintenance charges, shall also be payable by THE LESSEE.

 

On completion of the financial year, THE LESSOR/its nominees will provide THE LESSEE audited certificate of expenditure towards Maintenance Charges incurred during the said financial year. Any under-recovery by THE LESSOR/its nominees shall become payable by THE LESSEE to the LESSOR /its nominees and any over-recovery by THE LESSOR/its nominees shall become refundable by LESSOR/its nominees to THE LESSEE.

 

7.                                               THE LESSEE agrees that, in consideration of THE LESSOR granting lease and THE LESSEE in consideration of taking on lease the Demised Premises and due performance of all its obligations stipulated in this Lease Deed, THE LESSEE shall pay and always maintain with THE LESSOR during the entire term of this Lease Deed, an Interest Free Refundable Security Deposit (“Interest Free Refundable Security Deposit”) for an amount as mentioned in Annexure — II for the respective phases.

 

8.                                               THE LESSEE has paid an amount as mentioned in Annexure II, as a portion of   the Interest Free Refundable Security Deposit for the respective phases, payable at the time of execution of the Memorandum of Understanding. The sum as mentioned in Annexure — II, being the balance of the Interest Free Refundable Security Deposit shall be paid by THE LESSEE simultaneous with the signing of this Lease Deed.

 

9.                                               Upon increase in rent as mentioned in Annexure — II, the aforesaid Interest Free Refundable Security Deposit shall automatically stand increased proportionately   as mentioned in Annexure— II for the respective phases. The increased amount of Interest Free Refundable Security Deposit shall be paid by THE LESSEE along with the rent due for the month succeeding the month in which the term of the Lease Deed is renewed.

 

10.                                        The entire amount paid by THE LESSEE as Interest Free Refundable Security Deposit for the respective phases  during the lease period shall be kept by THE LESSOR which shall be refunded by THE LESSOR to THE LESSEE without any interest within 15 days of  THE LESSEE surrendering peaceful, vacant and physical possession of the Demised Premises in bare shell condition on expiry or earlier termination of this Lease Deed, if any and subject to adjustment or deduction of arrears of rent, charges and any other dues, if any, due and payable under this Lease Deed or renewal thereof.

 

11.                                        On signing and execution of this Lease Deed before handover for interior works, THE LESSEE agrees to pay to THE LESSOR an amount as mentioned in Annexure — II as Interest Free Refundable Maintenance Security Deposit for the respective phases  for Normal Office Hour Operations. However, in the event THE LESSEE opts for 24*7 operations/ THE LESSEE’s specific hour operations basis any time during the lease tenure/ renewed lease tenure, the Interest Free Maintenance Security will be enhanced as mentioned in Annexure — II. THE LESSEE will deposit the additional Interest Free Maintenance Security Deposit immediately on exercising the 24*7/ THE LESSEE’s specific hour basis operation option. The Interest Free Maintenance Security Deposit shall be refunded to THE LESSEE within 15 days of surrendering peaceful, vacant and physical possession of the Demised Premises in bare shell condition and after adjustment of any amount due from THE LESSEE on account of maintenance and other charges under this Lease Deed and after making adjustments, deductions or reimbursement for any damages suffered by THE LESSOR on account of any default or breach of any obligation by THE LESSEE under this Lease Deed.

 

12.                                        After the said Lock- in- period of the respective phases, THE LESSEE may terminate the lease by giving six (6) months’ prior notice in writing to THE LESSOR or by payment of proportionate equivalent rent, car/ two wheeler parking 

 

10

 

space charges, signage charges, maintenance charges, taxes and all other charges / sums stipulated under this Lease Deed in lieu of the notice period stipulated herein. Upon the expiry of six (6) months from the date of notice, as aforesaid, the lease shall stand terminated and THE LESSEE shall be liable to pay to THE LESSOR the entire rent, car/ two wheeler parking charges, maintenance charges, other charges, taxes etc. as set out in this Lease Deed for the period upto the date of vacation of the Demised Premises and handing over vacant, peaceful and physical possession of the Demised Premises.

 

That upon the expiry of lease or renewed lease as mentioned in Annexure — II or upon expiry or earlier termination during the initial lease period or renewed period as stipulated above for the respective phases, this Lease Deed will expire and come to an end  and THE LESSEE shall pay to THE LESSOR for the period of occupation of the Demised Premises till the date of vacation of the Demised Premises, the entire rent,  car/ two wheeler parking space charges, maintenance charges, other charges, taxes etc. as set out in this Lease Deed and till handing over vacant, peaceful and physical possession of the Demised Premises. If THE LESSEE fails to pay as aforesaid and/ or hand over vacant, peaceful and physical possession of the Demised Premises on the date of expiry of the last day of lease as contained in this paragraph or termination by THE LESSOR for breach of terms and conditions contained in the Lease Deed, THE LESSEE agrees to pay to THE LESSOR additional rent calculated @ Rs.1,30,750.55/- (Rupees One Lakh Thirty Thousand Seven Hundred Fifty and Paise Fifty Fiveonly) per day for Phase I and Rs. 1,98,833.20/- (Rupees One Lakh Ninety Eight Thousand Eight Hundred Thirty Three and Paise Twenty only) for Phase II, for occupation of the Demised Premises by THE LESSEE along with prevailing normal lease rentals and other charges for the respective phases under this Lease Deed and in such an event THE LESSEE hereby authorizes THE LESSOR to withhold without any interest the refund of all the refundable security deposits lying with THE LESSOR. THE LESSEE confirms that the payment of such additional rent is fair and reasonable and undertakes not to call in question the same.  THE LESSEE further agrees and authorizes THE LESSOR, in the event of such occupation of the Demised Premises exceeding a period of three (3) months beyond the expiry or last day of earlier termination of the lease, to forfeit all the refundable security deposits lying with THE LESSOR and in addition to continue to be liable and pay additional rent as given above in this para per day for the number of days of such occupation beyond the expiry or earlier termination of the Lease Deed along with normal prevailing lease rentals for the respective phases, alongwith other charges under this Lease Deed, till all payments due under the Lease Deed and in this  clause are paid and THE LESSEE hands over peaceful, vacant and physical possession of the Demised Premises to THE LESSOR.

 

The above shall be without prejudice to the rights and remedies available to THE LESSOR under this Lease Deed and/ or under any law for the time being in force.

 

13.                                    THE LESSEE shall pay every month in advance, along with the rent,  proportionate charges for the operation / maintenance / service charges (more specifically detailed in Annexure —VI) in respect of the central air-conditioning / heating plant, the cost of running, maintenance and servicing of the service / utility lifts, generators, the cost of cleaning the said Plot  and said Building , maintenance of lawn/grounds/ cost of security services, electricity charges, water charges and such other necessary/ancillary expenses  of and incidental to the preservation and maintenance of the said Building / Plot in which the Demised Premises  is located and for the adequate provision of common services and facilities at a charge which shall be 1.2 times the actual expenditure on a calculation based on pro rata basis corresponding to the super built-up area of the Demised Premises for respective phases.

 

14.                                        Subject to all local laws applicable, THE LESSOR shall, through its architect identify the location(s) and provide space for signage if available at the floor occupied by THE LESSEE, as approved by the architect and THE LESSEE shall be allowed to put signage on such location(s). All taxes including service tax, duties, 

 

11

 

rates, cesses, costs and charges relating to the signages payable to the authorities concerned shall be borne and paid by THE LESSEE directly.

 

FAÇADE SIGNAGE

 

THE LESSEE will be allowed to put up a signage on the external façade of the said Building, if required and requested by the Lessee, as per the availability at the time of such request.  The size and the place of affixation of the signage will be as per the approval by THE LESSOR’s architect with the payment as may be mutually agreed between THE LESSOR and THE LESSEE. These charges would be payable on yearly basis and no refund/ adjustment will be made, if the lease expires earlier or lease is terminated before the completion of the year for which the payment is made in advance. All taxes including service tax, duties, rates, cesses, costs and charges relating to the signage, payable to the authorities concerned shall be borne and paid by THE LESSEE directly. No signage of any kind either inside or outside shall be allowed on the façade glass/ columns of the Demised Premises.

 

The above mentioned charges for the façade signage shall escalate together and on the same rate as that of the escalation of bare shell rent, Interest Free Refundable Security Deposit as stipulated in the Lease Deed

 

15.                                        THE LESSOR reserves the Building Naming rights inside and on the external façade of the said Building. The façade of the said Building shall also be used by other Lessees including the Lessee herein for displaying their name and advertisements as per THE LESSOR’s approval. THE LESSEE shall, at no point of time, raise any objection on any ground whatsoever in relation to the same.

 

Upon naming the said Building, THE LESSOR and other Lessees of the said Building, shall use such Building name in the business addresses for all purposes. THE LESSEE shall further raise no objection if THE LESSOR is made to display some other number or name on the said Building or in compliance of any court order, government order, order of the local body etc.

 

16.                                        THE LESSEE shall not pay interest free refundable deposit for bulk supply of electricity to THE LESSOR for 442 KVA of power load comprising of 175 KVA for Phase I and 267 KVA for Phase II.  Further, THE LESSEE agrees to reimburse to THE LESSOR or any authorized company /nominees / assigns of THE LESSOR, any costs, charges, deposits, etc. as may be demanded by THE LESSOR or any authorized company /nominees / assigns of THE LESSOR or any other agency supplying power to the Demised Premises from time to time during the term of the Lease Deed/Renewed Lease Deed  for arranging bulk electricity supply to the said Plot / said Building / Demised Premises and such deposits are to be payable on the basis of proportionate electricity load provided to the Demised Premises and proportionate load attributable to THE LESSEE in respect of common areas of the said Plot / said Building. Any deposit to be refunded shall be refunded by THE LESSOR to THE LESSEE after adjusting amounts, if any, due and payable by THE LESSEE to THE LESSOR on the expiry and / or earlier termination of this Lease Deed and on handing over the peaceful physical and vacant possession of the Demised Premises by THE LESSEE to THE LESSOR.

 

It is however clarified that the above mentioned power load of 0.006 KVA per sq.ft. of super built-up area is exclusive of power load for air conditioning provided by THE LESSOR.

 

17.                                        The specifications and information as to the materials used in construction of the Demised Premises are set out in Annexure - VIII and any change in the specifications as set out in Annexure — VIII, if desired by THE LESSEE, shall be implemented by THE LESSOR subject to feasibility and approvals at a rate which shall be 1.2 times the actual cost which shall be paid by THE LESSEE to THE LESSOR.

 

12

 

The terms and conditions quoted above are for bare shell condition of the   Demised Premises.

 

THE LESSEE shall construct the toilets within the Demised Premises at its own cost.

 

The necessary electrical connection for the FCU/AHU to be done by THE LESSEE and connected to THE LESSOR’s panel by doing the necessary modifications. Also, the cost of chilled water piping/any electrical/plumbing/fire fighting modification shall be borne by THE LESSEE.

 

HVAC plenum and lowside ducting needs to be done by THE LESSEE at its own cost.

 

Any dismantling of false ceiling of common areas for services provisioning by THE LESSEE is to be made good(as per THE LESSOR’s specifications) by THE LESSEE at their own cost.

 

Sprinkler tap — off: THE LESSEE has to take tap — off for down type Sprinklers with installation of valves under supervision of Building services.

 

18.                                        THE LESSOR has provided to THE LESSEE car/ two wheeler parking spaces for respective phases in the basement/surface/mechanical car parking/two wheeler spaces as earmarked in Annexure — VII subject to payment of rent and maintenance charges as per details mentioned in Annexure — II. In the event additional car /two wheeler parking spaces are required by THE LESSEE, THE LESSEE shall pay to THE LESSOR additional car /two wheeler parking space charges as may be mutually agreed between the Parties hereto for every additional car parking/two wheeler parking space provided by THE LESSOR, if available, on the same terms and conditions applicable to rent, interest free refundable security deposit, maintenance charges stipulated in this Lease Deed. The lock in period shall also be applicable to the car/ two wheeler parking spaces.

 

In the event of THE LESSOR providing electro mechanical system for car/ two wheeler parking spaces, the car/ two wheeler parking spaces as earmarked in Annexure —VII may be re-allocated, provided, however, the number of car/two wheeler parking spaces shall remain the same in terms of this Lease Deed.

 

The liability towards payment of Service Tax and other taxes as applicable shall be borne by THE LESSEE.

 

19.                                        The use of car/ two wheeler parking spaces in the basement(s)/surface/mechanical car/ two wheeler parking spaces in the said Building shall be allowed to THE LESSEE only from 8 a.m. to 8 p.m. from Monday to Friday and from 8 a.m. to 2.p.m. on Saturday, except Sundays, Public and National Holidays or on THE LESSEE’s specific operating hours. The above timings shall, however, be subject to such restrictions as may be imposed by any statutory authority or for security reason. THE LESSEE shall use the parking spaces only for the purposes of parking its cars and for no other use. THE LESSEE undertakes that it shall not make any constructions on the car /two wheeler parking spaces or create obstruction of any kind on it or around these spaces to hinder the movement of vehicles and persons. Further, without prior permission in writing of THE LESSOR, overnight parking of vehicles shall not be permitted for security reasons.  Any usage of car/two wheeler parking spaces from 8 p.m. to 8 a.m. on weekdays and after 2 p.m. on Saturdays and any usage thereof on Sundays, Public and National Holidays or beyond THE LESSEE’s specific operating hours would entail additional charges as determined by THE LESSOR.

 

20.                                        All costs, charges, expenses including penalties, payable on or in respect of execution and registration of this Lease Deed and on all other instruments and deeds to be executed pursuant to this Lease Deed , shall be borne and paid solely by THE 

 

13

 

LESSEE who shall be responsible for compliance of the provisions of Indian Stamp Act, 1899. The stamp duty and registration charges shall be paid by THE LESSEE to THE LESSOR at the time of signing of the Lease Deed and in any case before the handover for interior works. The Building Services will be released on registration of the Lease Deed.

 

21.                                        THE LESSEE shall be liable to pay interest @ 15% per annum on all amounts due and payable by THE LESSEE under this Lease Deed for the period of delay beyond the due date.  This is in addition to the rights of THE LESSOR under clause 12 and Clause 58 of this Annexure-I given herein.

 

22.                                        THE LESSEE shall pay all amounts agreed to be paid in the Lease Deed, provided, however, that the liability of THE LESSEE for such payments shall be calculated proportionately to the super built-up area of the Demised Premises and provided further that such liability shall commence from the date such revision / imposition/increase is effective or any subsequent date.

 

COVENANTS AND CONDITIONS TO BE OBSERVED AND PERFORMED BY THE LESSEE:

 

23.                                        THE LESSEE shall plan and distribute its electrical loads for respective phases in conformity  with the electrical systems installed by THE LESSOR and get these works executed after due approval in writing from THE LESSOR. Provided further that, should modifications, additions, alterations be required in the fire-fighting, electrical and other systems already installed, THE LESSOR shall, if feasible make such changes and be entitled to recover from THE LESSEE, all additional cost incurred on this account at a charge which shall be 1.2 times of  actual costs.

 

24.                                        To carry out day-to-day maintenance of the Demised Premises and the fixtures and fittings installed therein and the normal maintenance, minor repairs, including painting and distempering and polishing the interiors of the Demised Premises at its own cost.

 

25.                                        That if THE LESSEE fails to make full payments of rent, car/ two wheeler parking charges, façade signage charges, Maintenance Charges of any kind  and actual consumption charges of water, power and electricity, air-conditioning or discharge any rates, taxes, duties imposed upon the Demised Premises and payable by THE LESSEE in terms of this Lease within 15 days of its due date, THE LESSOR shall be entitled, in its sole discretion and with prior intimation, to stop supplying to THE LESSEE electricity / air conditioning/ water and / or all other services in addition to any other remedies/ actions THE LESSOR may take in its sole discretion. By doing so, THE LESSOR shall have no responsibility or liability for any loss and damage, if any, suffered by THE LESSEE and THE LESSEE shall not be entitled to lodge any claim whatsoever against THE LESSOR as a result of such action.

 

26.                                        That the common areas, facilities and amenities within the said Building shall be available for use only subject to the timely payment of maintenance charges and THE LESSEE agrees, that in the event of failure to pay maintenance charges within 15 days of the due date, THE LESSEE shall not have the right to use or demand such common areas, facilities and amenities. THE LESSEE shall have no ownership rights, title, interest or claim whatsoever in the said Plot, common areas, facilities and amenities within the said Building.

 

27.                                        Not to do or permit to be done any act or thing which may render void or voidable any insurance relating to or in respect of a part or the whole of the said Plot, the said Building or the Demised Premises, or cause any increase in premium payable in respect thereof.

 

28.                                        To permit THE LESSOR and its agents along with authorized representative of THE LESSEE, except in case of emergency(ies) at all hours to enter into the Demised Premises for the purpose of inspection or for any other purposes connected 

 

14

 

with or incidental to any maintenance issues such as fire, safety and security of the Demised Premises and the said Building including any emergency and/or unforeseen circumstances or in case of any inspection by any Government agency or any inspection by THE LESSOR with the directions of Government Agency. However, for periodic inspections, 2 days advance intimation will be given in writing to THE LESSEE, except in case of emergency (ies).

 

29.                                        To hand over the Demised Premises in bare shell condition together with THE LESSOR’s fixtures and fittings therein, in good order and condition (reasonable wear and tear excepted) on the expiry /earlier termination of the Lease, which ever is earlier.

 

30.                                        To use the Demised Premises as per zoning plan  only and  shall not carry on  or permit to be carried on in the Demised Premises or in any part thereof any activities which shall be or are likely to be unlawful, obnoxious or of nuisance, annoyance or disturbance to other tenants/occupants of the said Building wherein the Demised Premises are situated or store any goods of hazardous or combustible nature or which are heavy so as to affect the construction or the structure of the said Building or any part thereof or in any manner interfere for common use.

 

31.                                        THE LESSEE has obtained the Unit Approvals for the Demised Premises as on the date of signing of this Lease Deed.

 

THE LESSEE shall arrange to get their Unit Approvals for the Demised Premises terminated and complete all formalities with regards to such termination at its cost and expenses prior to the expiry of the Lease term / or renewal term thereof.

 

In case of THE LESSEE’s failure to get the unit approvals terminated within the aforesaid period, it will be assumed that the peaceful, vacant and physical possession of the Demised Premises have not been handed over by THE LESSEE to THE LESSOR on the expiry of the Lease Term and THE LESSOR shall be entitled to claim damages, payments, dues in accordance with the terms of the Lease Deed.

 

32.                                        The Demised Premises shall be used by THE LESSEE only and THE LESSEE shall not assign, transfer, mortgage, sublease or grant leave & license or transfer or part with or share possession in any manner whatsoever, of any portion of the Demised Premises.

 

In the event, THE LESSEE merges / amalgamates / consolidates and transfer its assets with/to any entity on account of any merger/amalgamation/consolidation, then a fresh Lease Deed shall be executed between THE LESSOR and the new entity/transferee on the same terms and conditions as set forth in this Lease Deed, subject to the new entity/ transferee obtaining prior SEZ approval. The new entity shall execute an undertaking as per the draft attached. In case of any outstanding dues payable by THE LESSEE to THE LESSOR as per Lease Deed, such outstanding amounts should be included in the petition to the appropriate court seeking permission for such merger/amalgamation/consolidation. THE LESSEE shall ensure that before approval of the scheme of merger/ amalgamation by the court having jurisdiction, the new entity executes an undertaking as per the format attached as the Annexure XII. Pending approval of any merger/ amalgamation/ consolidation, THE LESSEE will continue to make all payments payable as per the Lease Deed.

 

All costs, charges, expenses including penalties, payable on or in respect of execution and registration of the fresh Lease Deed and on all other instruments and deeds to be executed pursuant to the fresh Lease Deed, shall be borne and paid solely by new entity/transferee who shall be responsible for compliance of the provisions of Indian Stamp Act, 1899.

 

However, a fresh Lease Deed will not be executed by THE LESSOR till all dues are cleared by THE LESSEE and related documents are given to THE LESSOR.

 

15

 

The aforesaid shall be subject to SEZ Acts and Rules but within the above procedure.

 

33.                                        Subject to clause 45, THE LESSEE shall not make any structural changes,   additions or alterations in the Demised Premises without prior consent of THE LESSOR in writing.

 

34.                                        Upon its taking possession of the Demised Premises from THE LESSOR, THE LESSEE is satisfied that the construction work as also various installations as per Annexure-IX like electrification work, sanitary fittings, water, sewerage connections, fire fighting equipment and detection systems etc. are in good working condition and any issues, if any with respect thereto, have been resolved and rectified before its taking possession from THE LESSOR and that it shall not require THE LESSOR to perform any construction work, installations, etc in the Demised Premises (except structural repairs if any ) and there shall be no obligation whatsoever on the part of THE LESSOR to repair, renovate, improvise or to do anything concerning the Demised Premises, the said Building and the said Plot in any manner whatsoever.

 

35.                                        THE LESSOR has provided the fire fighting and fire detection system in accordance with the Amendment no.3 to the National Building Code of 1983 (SP7):1983 Part IV on each floor, common areas and basements of the building.

 

When the Demised Premises are handed over to THE LESSEE for  interior fit-out works or when THE LESSEE carries any additional interior works/modifications/alterations during the Lease period or renewed lease period, THE LESSEE agrees that it shall carry out such work(s), without altering/ tampering with the fire  fighting  systems  as  installed  therein. However, any modifications / additions / alterations to the existing fire fighting system shall be made by THE LESSEE with the prior written approval of THE LESSOR and by providing alternative and standby fire fighting system in the building.

 

THE LESSEE shall not, whether in the course of its interior fit-out works or as any thing ancillary thereto or at any time for any purpose whatsoever, execute or permit to be executed any works involving cutting/ chopping/ digging/ hacking/ dismantling in any manner or form/ destroying in any manner or form of the floors or walls of the Demised Premises without prior written permission of THE LESSOR.

 

Any lapse/violation/negligence on the part of THE LESSEE or its contractors / agents during any such interior works or additions/modifications/alterations  resulting in any kind of hazard or fire in the Demised Premises/ the said Building, loss of life/ property including third party, damage to the Demised Premises / said building structure etc. and all financial and legal consequences arising there from shall be the sole responsibility of THE LESSEE and THE LESSEE shall not impose any legal and financial liability on THE LESSOR.

 

THE LESSEE’S responsibility during interior fit-outs work, additions/modifications/alterations of interior works (referred hereinafter as interior works) and during the Lease Tenure/Lease Renewal Tenure and during operations is more detailed in ANNEXURE X to this Lease Deed.

 

In the event of any mishap occurring due to usage of lifts/escalators/elevators provided in said Building / said Complex, THE LESSOR or its employees shall not be held responsible for the same.

 

36.                                        THE LESSEE hereby represents to THE LESSOR that it is the owner of and has full right, title and interest in and to all trade names, trademarks, service marks, brand name(s), logos, symbols and other proprietary marks etc. (collectively ‘IPR’) and that any IPR if used by it in Demised Premises and in the said Building/ Complex would not infringe the IPR of any third party. THE LESSEE further covenants that it 

 

16

 

has not received any notice of any claim against it involving any conflict or claim of conflicts.

 

THE LESSEE covenants to THE LESSOR and undertakes to hold THE LESSOR harmless from any action brought about by any third party for any IPR infringement by THE LESSEE. THE LESSEE further undertakes that it shall defend any and all such acts, suits, proceedings, claims, judgments etc against THE LESSOR and any fees, costs, expenses of any kind related or incidental to any of the foregoing (including but not limited to) any fee (whether advocates, accountants or other professionals) costs and expenses of any kind incurred by THE LESSOR in preparing for, defending or taking any action with respect to the foregoing shall be borne by THE LESSEE, which THE LESSEE agrees to pay within fifteen (15) days of demand by THE LESSOR.

 

37.                                        That THE LESSEE has been informed by THE LESSOR hereby to comply with all the Laws, Rules,  Regulations as may be applicable to the operations of THE LESSEE in the Demised Premises including but not limited to the provisions of Environment (Protection) Act, 1986, Water (Prevention and Control of Pollution) Act, 1974Air (Prevention and Control of Pollution) Act, 1981, Municipal Solid Wastes (Management and Handling) Rules, 2000, Hazardous Wastes (Management and Handling) Rules, 1989 and Batteries (Management and Handling) Rules, 2001, Sales Tax, Service Tax and other applicable taxes and the Rules, Notifications etc. and their amendments made from time to time, and ascertain, in particular, compliance with the Central and State regulations concerning safe handling, storage, treatment and disposal of the wastes,  and THE LESSEE shall always remain solely responsible for the consequences of non-compliance of the aforesaid Acts/ Rules.

 

38.                                        That THE LESSEE has been informed by THE LESSOR hereby to install and operate and keep at all times in operational condition, various equipments, machinery etc. at its own cost and expenses in conformity with the provisions of Environment (Protection) Act, 1986, Water (Prevention and Control of Pollution) Act, 1974, Air (Prevention and Control of Pollution) Act, 1981,  Municipal Solid Wastes (Management and Handling) Rules, 2000, Hazardous Wastes (Management and Handling) Rules, 1989 and Batteries (Management and Handling) Rules, 2001 etc as applicable to THE LESSEE’s operations in the Demised Premises and it shall always remain solely responsible to obtain and always keep valid and make available necessary certificates from the Pollution Control Board and/or other appropriate authorities in this regard.

 

COVENANTS AND CONDITIONS TO BE OBSERVED AND PERFORMED BY THE LESSOR:

 

39.                                        During the term of the Lease Deed, THE LESSOR shall at its own cost, design and install a continuous and proper air conditioning and shall use its best efforts to maintain the same in good order and shall operate and run the same to ensure air-conditioning facilities to the Demised Premises throughout the year and shall be entitled to recover from THE LESSEE, charges on the basis as are stipulated in this Lease Deed. Provided, however, that should THE LESSEE require any changes, additions, alterations, in the system, due to its interior layouts, THE LESSOR may, if possible, make such changes and be entitled to recover from THE LESSEE, all additional costs incurred on this account at a rate which shall be 1.2 times of the actual costs incurred.

 

40.                                        Except in the event of a mechanical defect and / or electrical failure, THE LESSOR shall provide air-conditioning facilities to the Demised Premises during the normal office hours i.e. from 8 a.m. to 8 p.m. on all week days except Saturdays, Sundays, Public and National Holidays or THE LESSEE’s specific operating hours. On Saturdays, the air-conditioning will be provided from 8 a.m. to 2 p.m. only or as per THE LESSEE’s specific operating hours. Provided, however, that on receiving twenty four (24) hours’ notice, in writing,  should THE LESSEE so desires, THE LESSOR, if possible and permissible, may at the exclusive cost of THE LESSEE, 

 

17

 

provide air - conditioning facilities, on the second half of Saturday and also Sundays and Public/ National Holidays or beyond THE LESSEE’s specific operating hours, calculated at a rate which shall be 1.2 times the actual cost incurred on this account, to the Demised Premises  beyond the timings fixed, as aforesaid for the provision of such facilities.

 

41.                                        Except to the extent of a mechanical defect and /or electrical failure, THE LESSOR shall maintain the lifts in the said Building serving the Demised Premises and operate and run the same during the normal office hours as specified above, on all week days except on Saturdays, Sundays,  Public and National Holidays or THE LESSEE’s specific operating hours. On Saturdays, the lifts shall operate for first half of the day only or as per THE LESSEE’s specific operating hours.  These timings shall, however, be subject to such restrictions as may be imposed by any competent authority/ies in this behalf.  One of the lifts in the said Building shall, however, operate even after normal office hours as well as in the second half on Saturdays and also on Sundays, Public and National Holidays.

 

Provided, however, should THE LESSEE so desire, THE LESSEE may by giving twenty four (24) hours’ notice in writing request for provision of lift facility beyond the timings fixed as aforesaid for the provision of such lift facility to the Demised Premises, on the second half of Saturdays and also on Sundays, Public and National Holidays or beyond THE LESSEE’s specific operating hours. Upon receipt of such a written request, THE LESSOR may provide lift facilities to THE LESSEE calculated at a rate which shall be 1.2 times the actual cost incurred on this account.

 

42.                                        To carry out at its own cost, all major and structural repairs to the Demised Premises and also to the said Building.

 

43.                                        To supply and maintain regular supply of power/ electricity and water to the Demised Premises.

 

44.                                        To keep the Demised Premises in wind and watertight condition.

 

45.                                        To permit to carry out at the cost of THE LESSEE, but without in  any way damaging the main structure of the Demised Premises  or the said Building, erection of internal partitions and other internal alterations and additions which are not visible from outside, as may be necessary for the business of THE LESSEE provided THE LESSEE shall give prior written intimation of thirty (30) days to THE LESSOR in writing and with prior written approval of THE LESSOR’s architect, THE LESSEE shall  commence such alteration(s) or addition(s), provided, further that if any such additions or alterations, require the prior approval or permission of any Municipality or any other local body or authority, local or otherwise, or are governed by any rules or regulations. THE LESSEE shall not carry out such additions or alterations or erections without obtaining the prior permission or approval aforesaid and complying with such rules and regulations of such Municipal or local body or Government Authority. Provided further, that THE LESSEE shall upon vacating the Demised Premises remove such fixtures and fittings and restore the Demised Premises to THE LESSOR in its original condition, excepting reasonable wear and tear.

 

46.                                        To allow during the term of the Lease Deed, peaceful enjoyment of the Demised Premises, subject to THE LESSEE performing all its obligations under this Lease Deed.

 

COVENANTS AND CONDITIONS TO BE OBSERVED AND PERFORMED BY THE PARTIES:

 

47.                                        The super built — up area calculations are as provided in Annexure — IV hereto.  All payments by THE LESSEE towards rent, interest free security deposit, interest free maintenance security deposit,  maintenance and other charges etc. shall be determined and payable by THE LESSEE in terms of the final super built-up area to 

 

18

 

be determined on the Date of Possession/ Lease Commencement for the respective phases whichever is earlier.

 

48.                                        In the event any local body / authority takes over the maintenance of such services and facilities / amenities and the payment for such services and facilities / amenities of said Complex (more particularly set out in Annexure — VI) to the local body / authority is to be made by THE LESSOR, then THE LESSEE agrees to reimburse all such costs and charges as may be levied in respect of the Demised Premises to THE LESSOR as may be demanded by THE LESSOR at actuals, duly supported by relevant documents, if available.

 

49.                                        THE LESSOR has provided electrical wiring only up to the main distribution board on each floor in the said Building and shall not provide any electric wiring, fixtures and fans etc., inside the office spaces which shall be installed by THE LESSEE at its own cost.  Similarly air conditioning is provided by THE LESSOR up to air handling unit on each floor of the said Building. The internal distribution system of air conditioning in the Demised Premises shall be the sole responsibility of THE LESSEE.

 

50.                                        The fire fighting and fire detection system which is provided by THE LESSOR in accordance with Amendment no.3 to the National Building Code of 1983 (SP7):1983 Part IV is limited to installation of sprinklers and fire detection system in the basement(s) and common areas of the said Building such as lobbies, staircases corridors, etc. and service shaft for fire fighting and sprinkler services on each floor.

 

If, however, due to any subsequent legislation, Government orders, directives or  guidelines or due to any change in the National Building Code, additional fire safety measures are undertaken, then THE LESSEE agrees to pay on demand additional expenditure incurred thereon for installing additional fire safety measures as determined by THE LESSOR which shall be final and binding on THE LESSEE. THE LESSEE agrees that, in case THE LESSEE so desires, it shall at its own cost and responsibility install fire fighting equipment and systems within the Demised Premises which shall be in compliance with the fire fighting regulations and safety systems as prevalent and approved by the Competent Authorities.

 

However, it is made clear that any lapse on the part of THE LESSEE in installing safe and adequate fire fighting systems within the Demised Premises or any fire, electrical or otherwise, or any kind of hazard originating from the Demised Premises shall not impose any legal and financial liability on THE LESSOR and THE LESSEE agrees to keep THE LESSOR indemnified and harmless in this regard.  Similarly THE LESSEE shall ensure that the internal air-conditioning electrical systems and any other work done internally within the Demised Premises shall not pose any fire, electrical, structural, pollution and health hazards.  THE LESSEE shall be solely responsible for all legal and financial consequences arising there from and THE LESSEE agrees to keep THE LESSOR indemnified and harmless in this regard.

 

51.                                        If THE LESSEE requires any extra fire fighting systems to be installed in the Demised Premises,  including but not limited to extending fire fighting system in  the Demised Premises, then the same shall be installed by THE LESSOR at a cost which shall be 1.2 times the actual costs, to be payable by THE LESSEE to THE LESSOR.

 

52.                                        In the event THE LESSOR suggests additional fire safety measures, though not statutorily required, for installation by THE LESSEE within the Demised Premises and THE LESSEE fails to implement THE LESSOR’s suggestion either fully or in part, then THE LESSEE alone shall be liable and responsible for all consequences arising from such inaction/decision on its part.

 

53.                                        It is abundantly made clear to THE LESSEE that the cost incurred by THE LESSEE, during the lease period, to install fire fighting and fire detection systems

 

19

 

within the Demised Premises, shall be to its account solely and shall not be borne or refunded by THE LESSOR or deducted from the rent payable to THE LESSOR under any circumstances whatsoever.

 

54.                                        During the term of the Lease Deed and the renewed Lease Deed if any, THE LESSOR shall obtain fire and special peril insurance coverage of the entire said Building, including third-party liability and shall make timely payment of all insurance premiums.

 

55.                                        During the term of the Lease Deed and the renewed Lease Deed if any, THE LESSEE shall obtain comprehensive insurance coverage, including third-party coverage, of all interior works while carrying out interiors or thereafter from the time of take over of possession for interiors and lease term(s), renovations, furniture, equipment and/or other items kept or stored in the Demised Premises, third party shall make timely payments of all insurance premia. THE LESSOR shall in no way be responsible for any loss occasioned by THE LESSEE on account of not obtaining comprehensive insurance coverage of all renovations, furniture, equipment and/or other items kept or stored in the Demised Premises.

 

56.                                        However, it is made clear that in the event of an accident or fire or damages for any other reason resulting in any loss, financial or otherwise to either party or to third parties, both Parties agree to take up the matter with their respective Insurance Companies through the insurance cover including third party liability.

 

THE LESSEE shall allow third party fire /safety inspectors being appointed by THE LESSOR /its nominees for fire /safety audit.

 

57.                                        That if at any time during the occupation by THE LESSEE of the Demised Premises, the lifts or the air conditioning system fails to function or fails to maintain the required temperature levels, THE LESSEE shall be entitled to call upon and require THE LESSOR to remedy and rectify the system within a reasonable time.  Provided, however, that THE LESSOR shall ensure that there will not be total absence of lifts and air-conditioning for more than one day at a time.

 

58.                                        THE LESSOR may forthwith re-enter upon the Demised Premises or upon any part thereof or may terminate this Lease and this Lease Deed shall thereupon stand determined but without prejudice to any claim which THE LESSOR may have against THE LESSEE in respect of any breach, non — performance or non —observance of the covenants or conditions herein contained in the following events:

 

(a)                                          If any amount payable by THE LESSEE to THE LESSOR by way of rent and other sums/ charges payable under this Lease Deed shall be in arrears and unpaid for a period of Thirty (30) days after the same has become due and THE LESSEE fails to clear the payments.

 

(b)                                          If THE LESSEE shall omit to perform, observe any covenant or condition to be observed and performed on the part of THE LESSEE  and shall continue to do so or fails to remedy the breach within seven (7) days of the intimation of such   breach or THE LESSEE is adjudicated as insolvent

 

It is further agreed by THE LESSEE that THE LESSOR shall be entitled to adjust all and any sums due to THE LESSOR including rent, car/two wheeler parking space charges, façade signage charges (due for the year in which the lease is terminated) and maintenance charges for the unexpired lock in period of lease and to the extent of shortfall in notice period, taxes, interests, damages etc., against all security deposits made by THE LESSEE with THE LESSOR under this Lease Deed.  In the event the aggregate of arrears of rent, any other sum due and payable and the above mentioned costs exceed the amounts deposited as security deposits with THE LESSOR, then THE LESSEE shall pay to THE LESSOR such amounts due to THE LESSOR, over and above such sums deposited by THE LESSEE with THE LESSOR.

 

20

 

59.                                        That if the Demised Premises  or any part thereof be destroyed or damaged by fire (not caused by any willful act or negligence of  THE LESSEE), earthquake, tempest, flood, lightning, violence of any army or mob or enemies of the country or by any other irresistible force so as to render the Demised Premises  unfit for the purpose for which the same was leased, THE LESSEE may, temporarily vacate the whole or such portion of the Demised Premises as may be required to enable THE LESSOR to carry out repairs in order to restore the Demised Premises  as it was then existing at the time of  THE LESSEE entering into the Demised Premises (reasonable wear and tear excepted) and in such event, the payment of rent, other charges and maintenance/service charges  till the affected area of the Demised Premises or portion thereof are repaired and restored to the state as specified above shall abate.

 

However, if such force majeure conditions persist for more than 90 days, THE LESSEE shall have the option to terminate the Lease Deed vide giving 30 days written notice to THE LESSOR. In such an event, THE LESSOR shall be liable to refund the Security Deposits paid by THE LESSEE towards the lease of the Demised Premises to THE LESSEE.

 

63.                                        THE LESSEE undertakes that during the term of this Lease Deed or any renewal thereof, it shall maintain its corporate existence and shall not dissolve or liquidate or enter into an agreement with any party, including but not restricted to a compromise with its creditor(s) such that its corporate existence is or may be questioned, in which event, this Lease Deed shall automatically terminate.

 

In the event of THE LESSEE being adjudged insolvent or in the case of Company/ Firm being liquidated, the Lease shall stand automatically terminated and THE LESSOR shall enter into the Demised Premises to assume the possession which shall be without prejudice to the rights of THE LESSOR to claim/ recover its dues along with interest/ damages till the date of termination.

 

64.                                        THE LESSOR shall have the right to install posters, banners, contra-visions, any displays of multimedia/visual format in the common areas like lift lobbies, atrium(s), lifts etc. of the said Building.

 

65.                                        The entry to the lift lobby/atrium of the said Building will be permitted to the employees of THE LESSEE only through the Access Cards provided by THE LESSOR. The cost of such Access Cards shall be borne by THE LESSEE.

 

THE LESSEE shall provide THE LESSOR details of all employees for whom the cards are to be made at least one month prior to the Date of Occupation. Any additional cards required by THE LESSEE will be provided after one month from the date of request.

 

The cost of the Access Cards shall be paid to THE LESSOR at the time of making such request.

 

In the event of loss of Access Card by THE LESSEE’s employee(s), the same shall be intimated to THE LESSOR immediately by THE LESSEE so as to avoid any misuse thereof.

 

The new Access Card will be issued on receipt of written request from THE LESSEE along with the cost of Rs.35/- per card.

 

In the event of cessation or termination of any employee of THE LESSEE, the Access Card shall be returned to THE LESSOR immediately to avoid any misuse thereof.

 

66.                                        THE LESSEE agrees and consents that it would have no objection to THE LESSOR  mortgaging or creating a third party charge on the Demised Premises  subject to, 

 

21

 

however, that the creation of such mortgage / charge of the Demised Premises shall not affect the rights of THE LESSEE to use the Demised  Premises during the lease period.

 

67.                                        THE LESSEE agrees and consents that it would have no objection for transfer either by way of sale, mortgage or in any other manner howsoever, of the Demised Premises and/or the said Building, provided, the rights of THE LESSEE in the Demised Premises remain unaffected vis-à-vis the transferee.

 

68.                                        THE LESSEE agrees and commits that THE LESSOR shall have sole and absolute right to make additions, raise storeys or put up additional structures as may be permitted by competent authorities and such additional structures and storeys shall be the sole property of THE LESSOR, which THE LESSOR will be entitled to dispose of in any way it chooses without any interference on the part of THE LESSEE by itself or with one or more of the rest of occupants of the said Building.  Further all the terraces of the said Building including the parapet walls of the terraces shall always be the property of  THE LESSOR and  THE LESSOR shall be entitled to use the same for any purpose as it may deem fit.

 

69.                                        That if during the term of the Lease Deed and the renewed Lease Deed if any, the Demised Premises or any part thereof be lawfully acquired or requisitioned by the Government or any local body or authority, local or otherwise, THE LESSOR alone shall be entitled to any and all compensation payable and THE LESSEE shall not raise any claim in respect thereof on THE LESSOR.

 

70.                                        That where two or more persons are included in the term “THE LESSEE” all covenants, terms, conditions and restrictions shall be binding on them jointly and each of them severally and shall be binding on their personal representatives respectively, jointly and severally.

 

71.                                        That if any provision of this Lease Deed shall be determined to be void or unenforceable under applicable law, such provisions shall be deemed amended or deleted to the extent necessary to conform to applicable law and the remaining provisions of this Lease Deed shall remain valid and enforceable.

 

72.                                        That THE LESSEE and THE LESSOR shall abide by the laws of the land and any and all local enactments in respect of this Lease Deed of the Demised Premises. THE LESSOR may, with intimation in writing to THE LESSEE, inspect the Demised Premises from time to time at frequencies considered necessary by THE LESSOR and should there be any violations, contraventions as are observed by THE LESSOR, THE LESSEE will ensure compliance with the requirements as per applicable laws.

 

73.                                        Any penalties levied by the Government, State, Municipal Body etc. as a result of non-compliance by either Party will be borne by the defaulting party in respect of the Demised Premises.

 

74.                                        That the building wherein the Demised Premises are located is a strictly no-smoking area. THE LESSEE shall ensure that no act in contravention of the provisions of ‘Prohibition of Smoking in Public Places Rules, 2008’ is committed in the Demised Premises or in the common spaces of the Building wherein the Demised Premises are located. In case any offence under the ‘Prohibition of Smoking in Public Places Rules, 2008’ is committed in the Demised Premises or in common areas of the said Building wherein the Demised Premises are located, by any employee/visitor of THE LESSEE, THE LESSEE shall be responsible for the same and any fine payable in respect thereof shall be paid by THE LESSEE and THE LESSOR shall not be responsible for the same.

 

75.                                        That any notice, letter or communication to be made, served or communicated unto THE LESSOR under these presents shall be in writing and shall be deemed to be duly made, served or communicated only if the notice, letter or communication is 

 

22

 

addressed to THE LESSOR at the address given below or such other addresses as may be intimated in writing by THE LESSOR in this behalf and sent by registered post/fax/email (given hereunder)/ speed post or delivered personally with acknowledgement. Similarly any notice, letter or communication to THE LESSEE by THE LESSOR or other authorized representatives of THE LESSOR shall be deemed to be made, served or communicated only if the same in writing is addressed to the below mentioned address of THE LESSEE or to the address of the Demised Premises when THE LESSEE has shifted to the same, by registered post/fax/email (given hereunder)/ speed post or delivered personally with acknowledgement. The communication is to be addressed to the following:

 

	
For   THE LESSOR
    	
For   THE LESSEE
    
	
 
    	
 
    
	
Director   - Offices
    	
Facilities   Head
    
	
10th   Floor, DLF Gateway Tower,
    	
Virtusa   India Pvt. Ltd.
    
	
‘R’   Block, DLF City Ph — III,
    	
1st Floor, Block B, Sy No   115/Part
    
	
Gurgaon   — 122002
    	
Plot   No 10, Nanakramguda
    
	
 
    	
Serilingampalli   Mandal, R.R Distt
    
	
 
    	
Hyderabad   — 500 032
    
	
Phone   91-124- 4057410
    	
Phone:   +91 — 40 — 4452 8000
    
	
Fax   91-124-4057414
    	
Fax:   + 91 — 44 — 4452 8000 Ext. 61419
    
	
E Mail: lease-chennai@dlf.in
    	
E mail: virtusaindfinance@virtusa.com
    

 

This Annexure forms an integral part of the Lease Deed.

 

	
For and on behalf of
    	
 
    	
For and on behalf of
    
	
DLF   Assets Private Limited
    	
 
    	
Virtusa   India Private Limited
    
	
 
    	
 
    	
 
    
	
/s/   Amit Grover
    	
 
    	
/s/   Neeraj Dutt
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Amit Grover)
    	
 
    	
(Neeraj Dutt)
    
	
AUTHORIZED   SIGNATORY
    	
 
    	
AUTHORIZED   SIGNATORY
    

 

23

 

ANNEXURE II

 

Commercial Terms and Conditions forming integral part of Lease Deed dated                             between Virtusa India Private Limited and DLF Assets Private Limited

 

	
S.N
    	
 
    	
Item
    	
 
    	
Description
    	
 
    	
Cross Reference
   (For convenience
   only)
    Reference Clause
   of
    
	
(a)
    	
 
    	
Demised Premises
    	
 
    	
Location-   Chennai

 

Building   — DLF IT Park @ Chennai

 

Block—   10

 

Super   Built up Area - 73,650 sq.ft. (6,842.252 sq.mtrs.) comprising of approx.   29,218 sq.ft. (approx. 2,714.418 sq. mtrs.) as Phase I and approx. 44,432   sq.ft. (approx. 4,127.834 sq. mtrs.) as Phase II

 

Floor   — Entire 5th Floor 

 

(Hereinafter   referred to as “Demised Premises”).
    	
 
    	
1 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(b)
    	
 
    	
Aggregate super built up area under this Lease   Deed
    	
 
    	
6,842.252   Sq. Mtr.

 

73,650   Sq.ft.

 

(Seventy   Three Thousand Six Hundred and Fifty Square ft.)
    	
 
    	
1 of Lease Deed 

 

 

1 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(c)
    	
 
    	
Number of car/two wheeler parks in basement/ stilt/ surface/   mechanical car parking spaces
    	
 
    	
 
    	
 
    	
4 of Lease Deed  & 18 of Annexure — I
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
At the rate of Rs. 1,500/- per car park per month   and the said car parking charges of Rs. 1,500/- per car park per month shall   be inclusive of car park maintenance charges. The Service Tax and other   taxes as applicable shall be additional.
    	
 
    	
Seventy   Three (73)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Additional Car /two wheeler Parking Spaces, required by THE LESSEE   will be given, subject to availability on payment of Rs. 2,000/- per car park   per month and the said car parking charges of Rs. 2,000/- per car park per   month shall be inclusive of car park maintenance charges. The Service   Tax as applicable shall be 
    	
 
    	
 

NIL
    	
 
    	
 
    

 

24

 

	
 
    	
 
    	
additional.
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TOTAL        
    	
 
    	
Seventy   Three (73)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(d)
    	
 
    	
Date of Possession
    	
 
    	
Phase   I — 1st July, 2012 

Phase   II — 1st October, 2012
    	
 
    	
2 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(e)
    	
 
    	
Date of Lease Commencement
    	
 
    	
Phase   I — 1st July, 2012 

Phase   II — 1st October, 2012
    	
 
    	
2 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(f)
    	
 
    	
Date of Rent Commencement
    	
 
    	
Bare   Shell Payment of Rent by LESSEE shall commence from 1st October, 2012 for   Phase I and 1st January, 2013 for Phase II. 

 

For   Car /Two Wheeler Parking spaces charges: The payment shall commence from the   Rent Commencement Date of the respective phases.
    	
 
    	
2 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(g)
    	
 
    	
Initial   lease period from the Date of Lease Commencement of respective phases
    	
 
    	
The   initial Lease shall be for a period of 5 years with THE LESSEE having the   sole option to renew the lease for one term of 5 Years. Further, beyond 5+5   years, if mutually agreed between the parties, the lease may be renewed for a   further additional term under mutually agreed terms and conditions, provided   THE LESSEE obtains prior SEZ approval for the lease term / renewed lease   term(s). 

 

Both   THE LESSOR and THE LESSEE shall maintain their SEZ/ Unit Approvals valid   during the entire Lease Tenure/ renewed Lease Tenure.
    	
 
    	
12 of Annexure I of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(h)
    	
 
    	
Option to renew Lease Deed for further period
    	
 
    	
One   term of Five years 

 

Further   beyond 5+5 years, if mutually agreed between the parties, the lease may be   renewed for a further additional term under mutually agreed terms and   conditions, provided THE LESSEE obtains prior SEZ approval for the lease term   / renewed lease term(s).
    	
 
    	
 

5 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(i)
    	
 
    	
Monthly Rent Payable on super built up area for   initial 36 months of the lease period 
    	
 
    	
 
    	
 
    	
 

1 of Annexure I of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Bare Shell
    	
 
    	
Rs.   44.75/- (Rupees Forty Four and Paise Seventy Five only) Per Sq. Ft. Per Month   amounting to Rs.13,07,505.50/- (Rupees Thirteen Lakhs Seven Thousand Five 
    	
 
    	
 
    

 

25

 

	
 
    	
 
    	
 
    	
 
    	
Hundred   Five and Paise Fifty Only) per month for Phase I and Rs. 19,88,332/- (Rupees   Nineteen Lakhs Eighty Eight Thousand Three Hundred and Thirty Two only) for   Phase II 

 

The   Service Tax and other taxes on monthly rents for the respective phases as   applicable shall be additional and shall be borne by THE LESSEE.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(j)
    	
 
    	
Increase in rent, Interest Free Security   Deposit, any other charges
    	
 
    	
The   rent for the respective phases will be enhanced by fixed 15% over the last   paid rent at the end of Thirty Six (36) months, Seventy Two (72) months and   One Hundred and Eight (108) months respectively from the date of Lease   Commencement of Phase I. 

 

The   interest free security for the respective phases will be enhanced to be   always equal to Six (06) months rent and shall increase by 15% at the end of   the Thirty Six (36) Months, Seventy Two (72) months and One Hundred and Eight   (108) months respectively from the date of Lease Commencement of Phase I. 

 

The   enhancement of rent and payment of enhanced Interest Free Refundable Security   Deposit for the respective phases shall not lead to waiver of 6 months’   notice required to be given by THE LESSEE, as per the terms of this Lease   Deed, for renewal(s) of the Lease Deed. 

 

In   the event, THE LESSEE shifts into another block/ tower/ building of THE   LESSOR which is operational at a later date, then in all such cases, the   escalation for the space taken up in the new block/Tower/ Building shall be   co-terminus with the previous block/ tower/ building escalation dates.
    	
 
    	
 

5 of Lease Deed & 9 of Annexure I of   Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
In   the event THE LESSEE takes up space in phased manner or additional space   subsequently, then the escalation for all subsequent phases shall be   co-terminus with the escalation date for Phase I take up.
    	
 
    	
 
    

 

26

 

	
(k)
    	
 
    	
Car   parking space charges
    	
 
    	
29   Car/two wheeler parking spaces for Phase I and 44 car/two wheeler parking   spaces for Phase II will be provided in basement/ stilt/ surface/ mechanical   car parking spaces on payment of Rs. 1,500/- per car park per month and the said car parking charges of Rs.   1,500/- per car park per month shall be inclusive of car park maintenance   charges for the respective phases. 

 

Car   parks required by THE LESSEE will be given @ Rs. 1,500/- per car park per   month for the respective phases. Any additional car parks required by THE   LESSEE will be given, subject to availability, @ Rs.2,000/- per car park per   month for the respective phases and   the said car parking charges of Rs. 2,000/- per car park per month for the   respective phases shall be inclusive of car park maintenance charges.   The lock-in period for the respective phases shall also be applicable to car   parking spaces. 

 

The   Service Tax and any other taxes on car parking charges for the respective   phases as applicable shall be additional and shall be borne by THE LESSEE. 

 

There   shall be no escalation in the car parking space charges.
    	
 
    	
18 of Annex — I
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(l)
    	
 
    	
Bulk   Electricity Supply Deposit for 175 KVA for Phase I and 267 KVA for Phase II   of Power Load.
    	
 
    	
Rs.   5,25,000/- (Rupees Five Lakhs Twenty Five Thousand only) for Phase I and Rs,   8,01,000/- (Rupees Eight Lakhs and One Thousand only) for Phase II 

 

Any   additional power load required by THE LESSEE for the respective phases shall   be provided not exceeding 3% of 0.006 KVA per sq.ft. of leased area, subject   to availability and on payment of a non-refundable charge of Rs. 10,000/- per   KVA of power load in addition to the refundable deposit of Rs. 3,000/- per   KVA of power load. However, any additional infrastructure cost required for   supply of power from the source of power to the electrical tap off box on the   floor shall be borne by THE 
    	
 
    	
16 of Annex-I
    

 

27

 

	
 
    	
 
    	
 
    	
 
    	
LESSEE   at Cost + 20% basis. Any additional power load requirement beyond 3% of 0.006   KVA per sq.ft of leased area shall be discussed separately between the   parties. 

 

It   is however clarified that the above mentioned power load of 0.006 KVA per   sq.ft. of super built-up area is exclusive of power load for air conditioning   provided by THE LESSOR.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(m)
    	
 
    	
Interest   Free Refundable Security Deposit always equivalent to rent of Six (06) months   at any given point of lease.
    	
 
    	
Rs.   Rs. 1,97,75,025/- (Rupees One Crore Ninety Seven Lakhs Seventy Five Thousand   and Twenty Five Only) comprising of Rs. 78,45,033/- (Rupees Seventy Eight   Lakhs Forty Five Thousand and Thirty Three Only) for Phase I and Rs.   1,19,29,992/- (Rupees One Crore Nineteen Lakhs Twenty Nine Thousand Nine   Hundred and Ninety Two Only) for Phase II 

 

The   amount shall stand increased by such percent as mentioned in Clause   (j) above.
    	
 
    	
7 , 8 ,9  & 10 of Annexure I of Lease   Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
·   Paid at the time of signing of MOU
    	
 
    	
Interest   free refundable security deposit amounting to Rs. 98,87,512.50/- (Rupees   Ninety Eight Lakhs Eighty Seven Thousand Five Hundred Twelve and Paise Fifty   Only) comprising of Rs. 39,22,516.50/- (Rupees Thirty Nine Lakhs Twenty Two   Thousand Five Hundred Sixteen and Paise Fifty only) for Phase I and Rs. 59,64,996/-   (Rupees Fifty Nine Lakhs Sixty Four Thousand Nine Hundred and Ninety Six   only) for Phase II
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
·   Payable on signing of this Lease   Deed and before handover for interior works.
    	
 
    	
Interest   free refundable security deposit amounting to Rs. 98,87,512.50/-) (Rupees   Ninety Eight Lakhs Eighty Seven Thousand Five Hundred Twelve and Paise Fifty   Only) comprising of Rs. 39,22,516.50/- (Rupees Thirty Nine Lakhs Twenty Two   Thousand Five Hundred Sixteen and Paise Fifty 
    	
 
    	
 
    

 

28

 

	
 
    	
 
    	
 
    	
 
    	
only)   for Phase I and Rs. 59,64,996/- (Rupees Fifty Nine Lakhs Sixty Four Thousand   Nine Hundred and Ninety Six only) for Phase II
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(n)
    	
 
    	
Interest   Free Refundable Maintenance Security Deposit @ Rs 13.00 per sq.ft. per month   for normal office hours i.e. from 8.00 a.m. to 8.00 p.m. from   Monday to Friday and from 8.00 a.m. to 2.00 p.m. on Saturday except   Sundays, Public and National Holidays payable on signing of this Lease Deed. 

 

For   24*7 operations, the Interest Free Maintenance Security will be charged @ Rs   25/- per sq.ft. per month (estimated maintenance charges for 24*7 operations)   for a period of Six months. 

 

Maintenance   services on Public & National Holidays can only be provided if THE   LESSEE gets the requisite approvals from the local administration / competent   authority(ies) and not otherwise. 

 

The   above rates are estimations as on 1st April 2011 and will depend on the   relevant rates of petroleum products, taxes, electricity rates, wages & salaries during the Lease   Tenure/ Renewed Lease Tenure. All   maintenance charges are at cost + 20% as given in Clause 7 Annexure I.
    	
 
    	
Rs.   57,44,700/-) comprising of Rs. 22,79,004/- (Rupees Twenty Two Lakhs Seventy   Nine Thousand and Four only) for Phase I and Rs. 34,65,696/- (Rupees Thirty   Four Lakhs Sixty Five Thousand Six Hundred and Ninety Six only) for Phase II 

 

 

 

 

Rs.   1,10,47,500/-(Rupees One Crore Ten Lakhs Forty Seven Thousand Five Hundred   Only), comprising of Rs. 43,82,700/- (Rupees Forty Three Lakhs Eighty Two   Thousand Seven Hundred Only) for Phase I and Rs. 66,64,800/- (Rupees Sixty   Six Lakhs Sixty Four Thousand Eight Hundred Only)  for Phase II
    	
 
    	
 

11 of Annexure I of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(o)
    	
 
    	
Lock- in period from the Date of Lease   Commencement for the respective phases.
    	
 
    	
 

Thirty   Six (36)Months
    	
 
    	
3 of Lease Deed and 12 of Annexure I
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(p)
    	
 
    	
Notice period for termination of Lease Deed for   the respective phases
    	
 
    	
Six   (06)Months
    	
 
    	
3 of Lease Deed
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(q)
    	
 
    	
Place at which the rent and all other sums payable   by THE LESSEE to THE LESSOR by Cheques/ Bank drafts/ wire transfer.
    	
 
    	
New   Delhi
    	
 
    	
2 of Annexure I
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
(r)
    	
 
    	
Charges for Electricity/Power for internal Usage
    	
 
    	
As   per Annexure XI
    	
 
    	
 
    

 

29

 

This Annexure forms an integral part of the Lease Deed.

 

	
For and on behalf of
    	
 
    	
For and on behalf of
    
	
DLF   Assets Private Limited
    	
 
    	
Virtusa   India Private Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Amit Grover
    	
 
    	
/s/   Neeraj Dutt
    
	
 
    	
 
    	
 
    
	
(Amit Grover)
    	
 
    	
(Neeraj Dutt)
    
	
AUTHORIZED   SIGNATORY
    	
 
    	
AUTHORIZED   SIGNATORY
    

 

30

 

ANNEXURE — III (a)

 

DESCRIPTION OF THE PLOT

 

All those pieces and parcels of lands admeasuring a total area of 12.3808 hectares comprised in

 

	
Sl.
   No.
    	
 
    	
Survey
   Number
    	
 
    	
Area in
   Hectares
    	
 
    	
Sl.
   No.
    	
 
    	
Survey
   Number
    	
 
    	
Area in
   Hectares
    	
 
    	
Sl.
   No.
    	
 
    	
Survey
   Number
    	
 
    	
Area in
   Hectares
    	
 
    	
Sl.
   No.
    	
 
    	
Survey
   Number
    	
 
    	
Area in
   Hectares
    	
 
    
	
1.
    	
 
    	
58/5
    	
 
    	
0.3650
    	
 
    	
17.
    	
 
    	
59/3A2A
    	
 
    	
0.0600
    	
 
    	
33.
    	
 
    	
59/3A1
    	
 
    	
0.4050
    	
 
    	
49.
    	
 
    	
56/2C
    	
 
    	
0.1000
    	
 
    
	
2.
    	
 
    	
58/2B
    	
 
    	
0.3050
    	
 
    	
18.
    	
 
    	
61/3B
    	
 
    	
0.1050
    	
 
    	
34.
    	
 
    	
58/9
    	
 
    	
0.0575
    	
 
    	
50.
    	
 
    	
56/2E
    	
 
    	
0.0280
    	
 
    
	
3.
    	
 
    	
58/2A
    	
 
    	
0.2550
    	
 
    	
19.
    	
 
    	
61/3C
    	
 
    	
0.0250
    	
 
    	
35.
    	
 
    	
59/1
    	
 
    	
0.0636
    	
 
    	
51.
    	
 
    	
56/2F
    	
 
    	
0.0280
    	
 
    
	
4.
    	
 
    	
58/6B
    	
 
    	
0.3400
    	
 
    	
20.
    	
 
    	
55/6A1
    	
 
    	
0.6397
    	
 
    	
36.
    	
 
    	
59/3B
    	
 
    	
0.5271
    	
 
    	
52.
    	
 
    	
56/2G
    	
 
    	
0.0490
    	
 
    
	
5.
    	
 
    	
57/14
    	
 
    	
0.1039
    	
 
    	
21.
    	
 
    	
59/3A3
    	
 
    	
0.4050
    	
 
    	
37.
    	
 
    	
60/2
    	
 
    	
0.8950
    	
 
    	
53.
    	
 
    	
56/3
    	
 
    	
0.0210
    	
 
    
	
6.
    	
 
    	
58/6A
    	
 
    	
0.1100
    	
 
    	
22.
    	
 
    	
59/3A4
    	
 
    	
0.4050
    	
 
    	
38.
    	
 
    	
60/1A
    	
 
    	
0.0250
    	
 
    	
54.
    	
 
    	
56/4
    	
 
    	
0.0320
    	
 
    
	
7.
    	
 
    	
57/5C
    	
 
    	
0.0600
    	
 
    	
23.
    	
 
    	
59/3A2B
    	
 
    	
0.3168
    	
 
    	
39.
    	
 
    	
60/1B
    	
 
    	
0.0150
    	
 
    	
55.
    	
 
    	
57/6
    	
 
    	
0.0120
    	
 
    
	
8.
    	
 
    	
57/2
    	
 
    	
0.3050
    	
 
    	
24.
    	
 
    	
59/3A2C
    	
 
    	
0.9450
    	
 
    	
40.
    	
 
    	
60/1D
    	
 
    	
0.5700
    	
 
    	
56.
    	
 
    	
57/7B
    	
 
    	
0.0890
    	
 
    
	
9.
    	
 
    	
57/7B
    	
 
    	
0.0037
    	
 
    	
25.
    	
 
    	
57/15A
    	
 
    	
0.2450
    	
 
    	
41.
    	
 
    	
60/1E
    	
 
    	
0.3150
    	
 
    	
57.
    	
 
    	
57/10B
    	
 
    	
0.0890
    	
 
    
	
10.
    	
 
    	
57/4
    	
 
    	
0.3350
    	
 
    	
26.
    	
 
    	
58/7B2
    	
 
    	
0.0300
    	
 
    	
42.
    	
 
    	
60/1F
    	
 
    	
0.3450
    	
 
    	
58.
    	
 
    	
57/13
    	
 
    	
0.0400
    	
 
    
	
11.
    	
 
    	
57/6
    	
 
    	
0.0290
    	
 
    	
27.
    	
 
    	
58/8
    	
 
    	
0.0960
    	
 
    	
43.
    	
 
    	
58/7B2
    	
 
    	
0.0200
    	
 
    	
59.
    	
 
    	
57/14
    	
 
    	
0.0740
    	
 
    
	
12.
    	
 
    	
57/5A
    	
 
    	
0.0600
    	
 
    	
28.
    	
 
    	
57/15B
    	
 
    	
0.4054
    	
 
    	
44.
    	
 
    	
58/8
    	
 
    	
0.0700
    	
 
    	
60.
    	
 
    	
57/15A
    	
 
    	
0.3130
    	
 
    
	
13.
    	
 
    	
57/5B
    	
 
    	
0.0600
    	
 
    	
29.
    	
 
    	
58/7A1
    	
 
    	
0.0600
    	
 
    	
45.
    	
 
    	
58/9
    	
 
    	
0.0720
    	
 
    	
61.
    	
 
    	
57/15B
    	
 
    	
0.0890
    	
 
    
	
14.
    	
 
    	
58/3
    	
 
    	
0.3400
    	
 
    	
30.
    	
 
    	
58/7B1
    	
 
    	
0.0300
    	
 
    	
46.
    	
 
    	
58/10
    	
 
    	
0.0810
    	
 
    	
62.
    	
 
    	
59/3A2B
    	
 
    	
0.0030
    	
 
    
	
15.
    	
 
    	
58/4
    	
 
    	
0.3450
    	
 
    	
31.
    	
 
    	
56/2B2
    	
 
    	
0.0850
    	
 
    	
47.
    	
 
    	
59/1
    	
 
    	
0.4870
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
16.
    	
 
    	
59/2
    	
 
    	
0.2350
    	
 
    	
32.
    	
 
    	
56/2C
    	
 
    	
0.3011
    	
 
    	
48.
    	
 
    	
59/3B
    	
 
    	
0.0600
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Mugalivakkam Village, Sriperumbudur Taluk, Kancheepuram District, and situated within the sub-registration district of Kunrathur, and registration district of South Chennai.

 

Item II

 

All those pieces and parcels of lands admeasuring a total area of 4.35012 hectares comprised in Survey Nos.55 (0.07500 Hec), 57 (0.10445 Hec), 58/1 (3.38925 Hec), 58/2 (0.19538 Hec) and 58/3 (0.58604 Hec). Manapakkam Village, Sriperumbudur Village, Kancheepuram District, and situated within the sub-registration district of Joint-I, South Chennai and registration district of South Chennai. Item I and Item II in all measuring 16.73092 hectares

 

Situated in DLF IT PARK @ Chennai, 1/124 Shivaji Gardens, Moonlight Stop, Nandambakkam Post, Ramapuram, Mount-Poonamallee Road, Chennai 600 089

 

SCHEDULE B - (Description of leased Premises)

 

 

29,218 sq. ft (2,714.418 sq. mtrs.) for Phase I and 44,432 sq. ft. (4,127.834 sq. mtrs) for Phase II of super built up area on 5th Floor of Block 10 situated in the Schedule A Property.

 

DLF IT Park @ Chennai is a Special Economic Zone IT Park notified vide official gazette numbers F- 2/124/2006 dated 16th November 2006 and F-2/124/2005 dated 14th February 2007 approved by Ministry of Commerce.

 

31

 

ANNEXURE — III(b)

 

DESCRIPTION OF THE FLOOR PLAN OF THE DEMISED PREMISES

Phase I — Office Division 2 & 3

Phase II — Office Division 1& 4

 

 

32

 

ANNEXURE — IV

 

 

33

 

ANNEXURE V (a)

 

STATEMENT OF RENT, INTEREST FREE SECURITY, INTEREST FREE MAINTENANCE SECURITY, CAR/ TWO WHEELER PARKING SPACE CHARGES PAYABLE BY VIRTUSA INDIA PRIVATE LIMITED (PHASE I) TO DLF ASSETS PRIVATE LIMITED DURING THE PERIOD OF LEASE

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
CAR PARKING
    
	
BEGINNING
   FROM
    	
 
    	
ENDING
   ON
    	
 
    	
AREA
   (in
   Sq.ft.)
    	
 
    	
Rent (Rs
   per sq.ft.
   per mth)
    	
 
    	
MONTHLY RENT
   PAYMENT OF
   THE SUPER
   BUILT-UP AREA
   (Rs.)
    	
 
    	
INTEREST FREE
   SECURITY (IN RS)
   EQUIVALENT TO
   SIX (06) MONTHS
   PREVAILING
   RENT
    	
 
    	
INTEREST FREE
   MAINTENANCE
   SECURITY DEPOSIT
   FOR NORMAL
   WORKING
   HOURSOPERATIONS
    	
 
    	
29 Nos. of Car
   Parking @ Rs.
   1,500 per Car
   Park per month
   (In Rupees)
    	
 
    	
0 Nos. of
   Additional Car
   Parking @ Rs.
   2,000 per Car
   Park per
   month
    
	
1st July, 2012
    	
 
    	
30th June, 2015
    	
 
    	
29,218
    	
 
    	
44.75
    	
 
    	
13,07,505.50
    	
 
    	
78,45,033.00
    	
 
    	
22,79,004.00
    	
 
    	
43,500.00
    	
 
    	
NIL
    
	
1st July, 2015
    	
 
    	
30th June, 2017
    	
 
    	
29,218
    	
 
    	
51.46
    	
 
    	
15,03,558.28
    	
 
    	
90,21,349.68
    	
 
    	
22,79,004.00
    	
 
    	
43,500.00
    	
 
    	
NIL
    

 

Note: All terms as per Lease Deed are applicable.

 

34

 

ANNEXURE V (b)

 

STATEMENT OF RENT, INTEREST FREE SECURITY, INTEREST FREE MAINTENANCE SECURITY, CAR/ TWO WHEELER PARKING SPACE CHARGES PAYABLE BY VIRTUSA INDIA PRIVATE LIMITED (PAHSE II) TO DLF ASSETS PRIVATE LIMITED DURING THE PERIOD OF LEASE

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
INTEREST FREE
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
INTEREST FREE
    	
 
    	
MAINTENANCE
    	
 
    	
CAR PARKING
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
MONTHLY RENT
    	
 
    	
SECURITY (IN RS)
    	
 
    	
SECURITY
    	
 
    	
44 Nos. of Car
    	
 
    	
0 Nos. of
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
PAYMENT OF
    	
 
    	
EQUIVALENT TO
    	
 
    	
DEPOSIT FOR
    	
 
    	
Parking @ Rs.
    	
 
    	
Additional Car
    
	
 
    	
 
    	
 
    	
 
    	
AREA
    	
 
    	
Rent (Rs
    	
 
    	
THE SUPER
    	
 
    	
SIX (06) MONTHS
    	
 
    	
NORMAL
    	
 
    	
1,500 per Car
    	
 
    	
Parking @ Rs.
    
	
BEGINNING
    	
 
    	
ENDING
    	
 
    	
(in
    	
 
    	
per sq.ft.
    	
 
    	
BUILT-UP AREA
    	
 
    	
PREVAILING
    	
 
    	
WORKING HOURS
    	
 
    	
Park per month
    	
 
    	
2,000 per Car
    
	
FROM
    	
 
    	
ON
    	
 
    	
Sq.ft.)
    	
 
    	
per mth)
    	
 
    	
(Rs.)
    	
 
    	
RENT
    	
 
    	
OPERATIONS
    	
 
    	
(In Rupees)
    	
 
    	
Park per month
    
	
1st October, 2012
    	
 
    	
30th June, 2015
    	
 
    	
44,432
    	
 
    	
44.75
    	
 
    	
19,88,332.00
    	
 
    	
1,19,29,992.00
    	
 
    	
34,65,696.00
    	
 
    	
66,000.00
    	
 
    	
N.A.
    
	
1st July, 2015
    	
 
    	
30th September, 2017
    	
 
    	
44,432
    	
 
    	
51.46
    	
 
    	
22,86,470.72
    	
 
    	
1,37,18,824.32
    	
 
    	
34,65,696.00
    	
 
    	
66,000
    	
 
    	
N.A.
    

 

Note: All terms as per Lease Deed are applicable.

 

35

 

ANNEXURE VI

 

MONTHLY MAINTENANCE AND SERVICE EXPENDITURE (INDICATIVE)

 

A.                                    The expected monthly maintenance and service expenditure shall be charged at actuals +20% of the sum total of the following expenditure calculated on 73,650 sq.ft. of Super Built — up area basis and shall be charged every month. The expenditure shall include but shall not be limited to the following:

 

1.                                      Annual maintenance contracts, Service contract expenditure including taxes & statutory levies as applicable, lease rental and other charges for operation and maintenance of all electro-mechanical equipments and all other equipment installed and to be additionally installed by THE LESSOR/maintenance agency.

 

2.                                      Cost of water for all purposes.

 

3.                                      Cost of electricity for central air-conditioning (excluding AHUs) and all services provided including in the parking, common and external areas.

 

4.                                      Cost of maintenance of landscaped areas, compound wall, tube well, electrification sewerage, roads and paths and any other services within the boundary of the said plot.

 

5.                                      Cost of maintenance, cleaning, painting and necessary replacements of a revenue nature in common areas including cost of maintenance of basements and common services therein.

 

6.                                      Cost of security services.

 

7.                                      Cost of administrative staff, maintenance staff of the building and the manager directly related to the maintenance of the building.

 

8.                                      Cost of all consumables for all services in common areas.

 

9.                                      Annual fees of various authorities.

 

10.                               Cost of diesel and lubricants etc. for DG sets and cost of gas and lubricants etc. for gas generators and air conditioning systems etc.

 

11.                               Cost of all replacements / refurnishing of parts of various equipments used in maintenance services.

 

12.                               Cost of augmentation/up-gradations/replacement/deployment of existing and additional security/fire/other electromechanical systems acquired through leasing/ amortization/ rental basis.

 

13.                               Cost of expenses incurred on infrastructure in and around the said Building.

 

14.                               Cost of insurance of Building and fit-outs when fitted out space is provided.

 

15.                               Township maintenance charges till the services of the colony are handed over to a local body or authority.

 

16.                               Depreciation / sinking fund /lease rentals of all electro-mechanical equipments, including but not limited to chillers, D.G. Sets and lifts.

 

17.                               Maintenance Charges for Car/ Two Wheeler Parking Spaces

 

18.                               Any expenditure incurred on personnel, administrative and any other related cost of the custom/excise staff posted at SEZ operations.

 

36

 

B.                                    Cost of exclusive services, if any, provided to the occupant shall be extra.

 

C.                                    Service Tax and other taxes, as applicable, shall be additional.

 

37

 

ANNEXURE-VII

 

CAR/ TWO WHELER PARKING SPACES EARMARKED FOR USE BY THE LESSEE

 

Number of car/ two wheeler parking spaces earmarked in the basement/ surface/ mechanical car/ two wheeler parking spaces for use by THE LESSEE

 

Twenty Nine (29) Numbers for Phase I

Forty Four (44) Numbers for Phase II

 

38

 

ANNEXURE VIII

 

TENTATIVE SPECIFICATIONS FOR BLOCK 10, DLF IT Park @ Chennai

 

	
STRUCTURE
    	
 
    	
RCC framed structure
    
	
Finishes
    	
 
    	
 
    
	
External   Façade
    	
 
    	
Combination   of Clear Float Glass and/or Reflective floats glass with Granite / Metal Cladding   / Exterior paint / any other.
    
	
Atrium,   Lift Lobbies Floors & Walls.
    	
 
    	
Combination   of Indian marbles and / or granites.
    
	
Main   staircase(s) / Fire Escape staircase(s)
    	
 
    	
Terrazzo   / Kota Stone / Good concrete.
    
	
Elevators
    	
 
    	
High   Speed Passenger Elevators. Service Elevator
    
	
Parking
    	
 
    	
Surface/Basements/Mechanical
    
	
Amenities
    	
 
    	
Centrally   Air Conditioned Building — Provision for office area Air Conditioning   provided upto AHU on each floor. The internal distribution system of Air   Conditioning shall be sole responsibility of the tenant.
    
	
Power   Back up
    	
 
    	
100%   power back-up including power back up for AC system also.
    
	
Fire   Fighting
    	
 
    	
Sprinkler   and fire detection system will be provided in the basement area and common   area only as per NBC. For fire fighting & sprinkler services in   Office area, provisions will be made upto service shaft on each floor.
    
	
Wash   room
    	
 
    	
Gents   / Ladies Toilet on each floor as per statutory norms, CI/GI piping will be   provided, but no CP fittings, Fixtures Wall / Floor finishes. Door &   shutters will be provided.
    
	
Electricity/Telephone
    	
 
    	
Provision   on each floor up to the shaft. Connections have to be arranged by respective   owners/users. No Electric conduits or wiring shall be provided in the slab.
    

 

NOTE:

 

a)             Materials specially the imported ones are subject to availability as per prevalent policies of Govt. of India.

 

b)             Wherever larger floor heights are provided due to architectural reasons, from the viewpoint of air conditioning load, the height of false ceiling to be done by the Occupants shall not exceed 3 mtrs. from the finished floor level.

 

c)              The above-mentioned specifications are for common area only. The office area will be in “BARE SHELL” condition only i.e. cement flooring, no plaster on concrete columns, walls or ceiling except on brick walls wherever provided. All fittings, A.C. Ducts, Electrical distribution and Fire Fighting etc. shall be the sole responsibility of the Occupants.

 

d)             Plumbing provision for extra toilets may be provided at one / two different locations

 

e)              The above specifications are tentative and are subject to change at the sole discretion of THE LESSOR.

 

39

 

 

ANNEXURE IX

 

HANDOVER OF DEMISED PREMISES FOR OCCUPATION

 

1.              Gas Generators, DG and Chillers shall be commissioned for servicing the Demised Premises when THE LESSEE has completed their scope of work for the low side before the integration with THE LESSOR high side services can be done. The services will be provided/ connected within three working days of THE LESSEE’s request after THE LESSEE has completed their scope of work including interiors.

 

2.              Lift facility will be available one day before THE LESSEE starts operations, when advised by THE LESSEE.

 

3.              THE LESSEE to discuss and finalize all connectivity issues relating to telephone service provider with the service provider. Cables of Telephone Service Provider shall be terminated to the basement of the building.

 

4.              THE LESSOR shall not provide any storage space to THE LESSEE in the basements of the said Building.

 

40

 

ANNEXURE X

 

THE LESSEE’S RESPONSIBILITY DURING INTERIOR FITOUTS WORK, ADDITIONS/ MODIFICATIONS/ ALTERATIONS OF INTERIOR WORKS (REFERRED HEREINAFTER AS INTERIOR WORKS) AND DURING THE LEASE TENURE / LEASE RENEWAL TENURE AND DURING OPERATIONS

 

THE LESSOR has provided the fire detection systems as elaborated in Part B.  These systems are as per NBC norm.

 

A                                       THE LESSEE will be responsible to ensure the following elaborated under different sub heads:

 

(I)                                   FIRE DETECTION & FIRE FIGHTING

 

1.                                      The existing sprinkler systems provided is not to be isolated or closed at any point of time during interior works.

 

a)             For providing sprinklers below false ceiling a separate network of sprinklers to be installed.

 

b)             Before starting the interior/fitout works, THE LESSEE will also check for themselves that the sprinkler systems are in working condition. .

 

c)              Upon completion of False Ceiling, the sprinkler below false ceiling is to be charged.  Only upon charging the sprinklers below false ceiling THE LESSEE can do other interior works and can bring in the carpets / furniture / modular workstations/ chairs / wood for partitions etc. into the premises for installation.

 

2.                                      Fire detection, alarm systems and fire fighting systems must not be closed or isolated during the period when interior works are carried out or during the lease period or lease renewal period.

 

2(a).                           As and when there is Puja/ Havan in THE LESSEE’s Premises the Building Manager to take proper action for alarm system so that other occupants are not disturbed. THE LESSEE shall send prior notice for the Puja/ Havan including the essential details like time, date and the venue to the Building Manager.

 

3.                                      Before start of Interior works THE LESSEE to ensure 4 nos. Fire Extinguishers, 4 Nos. Sand buckets & 4 nos. Water buckets are placed at different locations on each floor of the premises when THE LESSEE is starting the interiors.

 

4.                                      Before doing any welding works, THE LESSEE to obtain hot works permit and ensure that the site is clear, no paper/wood pieces/or any other combustible material is around and adequate standby fire-fighting mechanism in place, which includes at least 2 nos of fire extinguishers, 1 nos of sand buckets, 1 nos of water bucket etc are in place. Once the welding is completed, the site to be re-inspected for any welding spark.

 

5.                                      No gas of any kind to be used for welding purposes. Only arc/electrical welding to be used.

 

6.                                      Zonal fire detection panels are provided on all floors.  THE LESSEE to ensure that at any point of time there would be some smoke detectors spread over the Said Premises operational and connected to the Zonal panel.

 

7.                                      During interior works, THE LESSEE to ensure proper signages and fire escape routes are prominently displayed inside their premises.

 

8.                                      Security Guards professionally trained in fire fighting systems to be deployed on each floor during all shifts round the clock.  They should be capable of handling the fire-fighting equipments provided on the floors such as fire hydrants etc.

 

41

 

9.                                      The entire building is a no smoking zone.  THE LESSEE to ensure that even during interior works no person smokes inside the building. Match Boxes & Cigarette Lighters are not allowed at site in the building.

 

10.                               No items of any nature to be stored in Electrical Control / Panel Room. A stray electrical spark may result in such items catching fire; moreover, presence of such items may impede access to Control Panel in times of emergency.

 

11.                               Use/storage of cooking gas / cooking gas cylinders in the Demised Premises is not allowed.

 

12.                               THE LESSEE’s Security Personnel except during the interior fit-out period should not remain inside the offices after they have been closed for the day. Unauthorised smoking by such staff can also contribute to major fire.  After closing hours, your Security/Guard be stationed outside the office (and not within), and the interiors of the offices can be monitored by then over closed circuit video cameras.

 

However, only the security guards professionally trained in fire fighting systems may remain inside the offices after they have been closed for the day. They should be capable of handling the fire-fighting equipments provided on the floors such as fire hydrants etc.

 

(II)                              ELECTRICAL & MECHANICAL

 

13.                               For the operational usage THE LESSOR has provided the electrical tap-off in electrical room alongwith  sub-meters installed for supply of power from grid/supplying agency and back-up power.  THE LESSEE to tap-off electricity through proper distribution panel / board properly earthed.  The distribution of electricity inside the premises during the interior works shall be responsibility of THE LESSEE.

 

14.                               All electrical installation shall be carried by authorised licensed contractor and client shall submit installation test certificate issued by same contractor and certificate of verification of these installation by a reputed electrical consultant.

 

15.                               During interior works Electrical supply for fitout to be given through portable DG/Building DG (if installed). In case power for fitouts is provided through temporary portable DG installed outside, THE LESSEE  will have to take the tapping though a cable of suitable rating from outside the building. Lessee to take the electricity in a proper panel/fitted with MCB & ELCB with proper earthing. Cable of proper rating to be used as per load. No loose connection & joints in wires will be allowed. During interior works while using drilling/hammering machine or any other electrical equipment, THE LESSEE shall ensure that proper 3 pin plugs are used. No over loading of socket will be allowed.

 

16.                               All outgoing feeders single phase & 3 phase in Panels & DBs outlets shall be suitable of individual equipment rating and out going feeders must have a protection arrangement so that it should trip in the event of overload, short circuit & earth fault.

 

17.                               All material to be used should be of IS Standard & from reputed manufacturer.  No sub standard material to be used.

 

18.                               No aluminum cable to be used.  Only copper cables of ISI make to be used.

 

19.                               Under no circumstances during interiors / operations should the safety system in the circuit / MCB / ELCB be bypassed.  THE LESSOR to ensure that this is adhered to under all circumstances.

 

20.                               Only CFL & tubes with electronic chokes or LED to be used.  No Aluminum / Copper chokes to be used.

 

21.                               Compressors of Split AC/ Precision AC shall be serviced regularly to avoid overheating / jamming of compressor / fan motor.  Stabilizer sockets to be checked regularly for heating.

 

42

 

22.                               Supply from one socket to be used for one source only and 3 wire cable to be used rather than 3 different cables.  No overloading of sockets.

 

23.                               Balancing of load should be proper in all 3 phases.

 

24.                               Coffee machine / water cooler/ oven and any other Electrical appliances should be properly earthed and to be used with a proper rating of cable through ELCB.

 

25.                               For power output 15 amp plug; for lighting 5 amp plug and for AC industrial sockets to be used.

 

26.                               Small step down transformer on false ceiling for lighting to be properly secured.

 

27.                               No PVC pipes to be used for Electrical wiring, only MS pipes to be used.

 

28.                               Electrical panel wiring to be properly dressed and the gap between the phases to be proper.

 

29.                               CT provided in the electrical panel should be of proper size and should have a proper gap between the space and CT to be checked for any heating/ cracking.

 

30.                               One circuit should not have more than eight light point or two power points.

 

31.                               For neon signages, transformer should be placed outside safe place or LED signages to be used.

 

32.                               THE LESSEE to ensure that the electro-mechanical systems installed in the Said Premises is properly maintained during their interior works and at the time of operations.  THE LESSEE to also ensure that no fire spreads from the premises.

 

33.                               THE LESSEE to have the audit of their entire Electrical systems done on a quarterly basis by a reputed Electrical consultant and provide a certificate certifying that all THE LESSEE’s installations including insulation resistance are in good and safe working condition and does not have any possibility of short circuit and becoming a fire source. To be submitted to the facility manager on quarterly basis.

 

34.                               THE LESSEE to have the audit of their entire HVAC systems done on a quarterly basis by a reputed HVAC consultant and provide a certificate certifying that all THE LESSEE’s installations are in good and safe working condition and does not have any possibility of short circuit and becoming a fire source. To be submitted to the facility manager on quarterly basis.

 

(III)                         DRAWINGS & SPECIFICATIONS

 

35.                               THE LESSEE shall ensure that the fitout works is done as per the drawings approved by THE LESSOR’s architect. No deviation will be allowed.

 

36.                               THE LESSEE to use fire retardant material in the design of their interior works.

 

37.                               While designing of interior works, it should be kept in mind that the access to the fire hydrants is not restricted in any way.

 

38.                               For flushing of water closets only cisterns/concealed cisterns are to be used. No flushing valves to be installed.

 

39.                               THE LESSEE to install automatic gas flooding Fire Extinguishing System, FM 200 or equivalent, in case THE LESSEE wants to remove the sprinkler system in the Server Room.  The FM 200 will not be kept on manual mode under any circumstances.

 

43

 

(IV)  WORK PROCEDURE

 

40.                              THE LESSEE shall ensure that no structural damage takes place.

 

41.                               Every day, on completion of work, THE LESSEE shall ensure that the site is cleaned all combustible & non-combustible scrap including any wood/paper/lose paint /any other material/scrap is remove from the premises.

 

42.                               THE LESSEE shall ensure that the malba/scrap is disposed out of project once in every three day.

 

43.                               THE LESSEE shall ensure that the stair cases are not blocked with interior fitout material.

 

44.                               No material shall be stocked in the lift lobby area.

 

45.                               THE LESSEE shall not store paint and other combustible material at Demised Premises. The material may be brought onto the floor for interior finishing as and when it is required.

 

46.                               No storage of any material / records in basement is allowed as it obstructs free movement. However, for a limited period of 10 days during interior works THE LESSEE with the permission of the facility manager can use this earmarked car/two wheeler parking space as temporary storage for fixture/furniture which is in the process of being installed. The same must be barricaded by THE LESSEE and THE LESSEE must depute a security guard for the same. THE LESSEE must install a Fire Fighting system such as extinguishers, sand buckets & water buckets to the satisfaction of the facility manager for this temporary storage area. This furniture/fixture will be allowed to be brought only 7 days in advance of installation. The storage area must be cleared by THE LESSEE immediately after shifting the material in their premises.  In case the interiors are getting delayed beyond the targeted date, THE LESSEE will clear the temporary store immediately and shift all material in their premises. When the material is shifted on the floor the packing / covering to be removed the same day and all packing / covering material to be shifted out of the premises and the building on the same day.

 

47.                               During normal office hours, no noisy interior works such as drilling, hammering, cutting, chisilling etc is to be carried out by THE LESSEE. The same can be done after normal office hours. However, works other than the above can be carried on which cause no disturbance to the occupied floors.

 

(V)                               OTHER REQUIREMENTS

 

48.                               No Parking of CNG / LPG powered cars in basements as the chances of occurrence of fire / explosion in such vehicles are very high.

 

However, Original Manufacturer company-fitted CNG / LPG vehicles will be allowed in car parking spaces designated by THE LESSOR.

 

49.                               Working Norms for Interior Works

 

In New Building where no client is operational the interior works can be done on 24 hrs.basis.

 

In a multi-tenanted building as soon as any client completes their interior works and becomes operational; no noisy works to be done during office hours.

 

Noisy works such as drilling, hammering, cutting, chiseling etc. to be carrying out by THE LESSEE after normal office hours.

 

50.                               That before any machinery, equipment, safe or furniture, etc. is moved into or out of the Demised Premises, due approval in writing must be taken by THE LESSEE from the Building Manager or other authorized personnel appointed by THE LESSOR, in the 

 

44

 

absence of which the movement thereof will not be permitted by THE LESSOR, provided, however, such movement will be allowed during normal business hours only.

 

51.                               Lifts/ elevators/ escalators of reputed makes have been provided in the said Building/ Building Complex.

 

THE LESSEE should educate its employees, visitors and customers with regard to the DO’s and DONT’s of the safe usage of these items. These are self operating lifts/ elevators/ escalators. Do’s and Don’ts as recommended by the suppliers are as displayed therein.

 

The maintenance of these items is done by giving AMC’s to suppliers/ third parties.

 

In the event of any mishap occurring, THE LESSOR or its employees shall not be held responsible for any consequences arising from usage of these items.

 

B.                                    The following fire-detection and alarm system are provided as per NBC norms inside the premises:

 

Fire Detection & Alarm System:

 

·                  Main control / Alarm panel located in security room connected with the floor-wise zonal panel located near the staircase.

·                  The Smoke / Heat Detectors installed by the floor occupant are connected to the zonal panels located on the floors.

·                  The main panel has inbuilt zone-wise fire detector and automatic alarm on all floors, through an amplifier.

·                  All AHUs and other ventilation / pressurization systems are operationally hooked-up with fire alarm / detection system.

 

Fire Fighting System

 

The following fire fighting systems are provided along with:

 

·                  Fire Pumps (Hydrants & sprinkler)

·                  Jockey pumps

·                  Diesel Driven engine pump

·                  Fire Hydrants

·                  Hose reels

·                  Fire extinguishers in common areas

·                  Sprinkler systems

·                  Public address and Alarm System

·                  Automatic / manual Fire Alarm system

 

The Fire Hydrant systems comprises of internal fire hydrant system available on all the floors and the external hydrant system around the building.

 

Sprinkler system is provided in basement, Lift lobby and service area and office areas as per NBC norms.

 

45

 

ANNEXURE XI (a)

 

Charges for Usage of Power in the Demised Premises

 

(a)         Usage of power during interior fitouts:

 

  i.            To the extent grid power is available and used — To be charged as per applicable grid rates

 ii.            For supply of power from back up sources — To be charged at Cost + 20%

iii.            When power taken from Utilities company is used — To be charged at Cost + 20%

 

(b)         Usage of power during lease tenure

 

  i.            If grid power is available and used — To be charged as per applicable grid rates

 ii.            For supply of power from back up sources — To be charged at Cost + 20%

iii.            When power taken from Utilities company is used — To be charged at Cost + 20%

 

For power used for common areas from any source, along with other expenditure like security, housekeeping etc, the total cost of above is charged in the overall maintenance charges at Cost + 20%.

 

46

 

ANNEXURE XI (b)

 

MAINTENANCE CHARGES

 

The maintenance charges for Demised Premises shall be calculated at actual cost + 20% payable from the Lease Commencement Date/Date of Occupation, whichever is earlier.

 

The estimated maintenance charges as on 1.4.2011 subject to increase in prices of diesel, gas and petroleum products, electricity rates, taxes, wages and salaries during the lease tenure/ renewed lease tenure are as below:

 

For normal office hours (8 am to 8 pm on Weekdays and 8 am to 2 pm on Saturdays except Sundays, Public and National Holidays): Rs 13.00/- per sq.ft. per month

 

For 24*7 operations  (except Public and National Holidays) is Rs 25/- per sq. ft. per month

 

Maintenance services on Public & National Holidays can only be provided if THE LESSEE gets approval from the local administration and not otherwise.

 

For working beyond normal office hours (provided it is a full floor): Rs 0.13/- per sq. ft. per hour on the super built up area of the full floor even if the area of Demised Premises is less than the full floor area or per hour for the Demised Premises to be intimated by the Building Manager when required.

 

Note: In the event the building is already operational and THE LESSEE is carrying out the fit out works but does not utilize the central air conditioning for the Demised Premises during the fitout period; maintenance will be charged at 50% of the normal maintenance charges.

 

47

 

ANNEXURE XII

 

(Applicable in case THE LESSEE merges or amalgamates after the Lease Deed is signed) To be given by transferee company

 

UNDERTAKING

 

To,

DLF                                              

                                                

 

Ref : Lease Deed dated -                                         

 

I,                                , the authorized representative, vide Board resolution/Power of attorney dated                       (Copy enclosed),                             ,  do hereby declare that

 

1.              We are fully aware with the Lease Deed dated                           executed between M/s DLF                                     and M/s.                                     contents thereof.

 

2.              We are fully aware with the terms and conditions of the abovementioned Lease Deed. We are aware that as per the terms and conditions of the aforementioned Lease Deed, in case of merger/consolidation or amalgamation of the Lessee with any other entity, a fresh Lease Deed shall be executed between the Lessor and the other entity as provided in clause     - of the Annexure I of the abovesaid Lease Deed subject to the new entity obtaining prior SEZ approval.

 

3.              We undertake that as per the provisions of the Lease Deed we shall execute a fresh lease deed on same terms and conditions within 30 days of passing of the order by the Court approving the scheme of merger.

 

4.              We are aware that we will step into the shoes of                                          and that our liability to make payments of rental and other charges as per the Lease Deed shall commence from the date of passing of the final order approving the merger. Till then the payments of rent and other charges payable under the Lease Deed shall be borne and paid regularly by M/s.                                    .

 

5.              We unequivocally agree, confirm and acknowledge to the Lessor that we shall be responsible for enforcement/compliance of all the terms and conditions of the Lease Deed and that we bind ourselves with the terms and conditions of the aforementioned Lease Deed and we shall also be liable for breach/non-compliance of the terms and conditions as per the Lease Deed dated                          .

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Authorised Signatory)
    
	
 
    	
 
    	
 
    
	
Confirmed   by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(
    	
                                 
    	
)
    	
 
    	
 
    
	
THE   LESSEE
    	
 
    	
 
    
					

 

48

 

ANNEXURE — XIII

 

ELECTRONIC CLEARING SYSTEM ACTIVATION FORM

 

	
Fields in red are mandatory for   activating ECS (NEFT / IFSC) mode of payment
    
	
1
    	
 
    	
Name of the Vendor :
    	
 
    	
DLF   Assests Private Limited
    
	
2
    	
 
    	
Contact person :
    	
 
    	
R.   Ramgopal
    
	
3
    	
 
    	
Designation :
    	
 
    	
Senior   Manager — Accounts
    
	
4
    	
 
    	
Address :
    	
 
    	
Upper   Basement, Block 1B, 
   DLF IT Park @ Chennai, 
   1/124 Shivaji Gardens, Moonlight Stop, 
   Nandambakkam Post, Manapakkam, 
   Mount Poonamallee Road, 
   Chennai 600 089
    
	
5
    	
 
    	
Mobile No :
    	
 
    	
+91   9962003099
    
	
6
    	
 
    	
Contact No :
    	
 
    	
+91   — 44 — 45497601
    
	
7
    	
 
    	
Email ID :
    	
 
    	
ramgopal-r@dlf.in
    
	
8
    	
 
    	
Fax :
    	
 
    	
+91-   44 - 42669802
    
	
9
    	
 
    	
Bank Name :
    	
 
    	
CITI   BANK
    
	
10
    	
 
    	
Bank Address :
    	
 
    	
CONNAUGHT   PLACE, NEW DELHI
    
	
11
    	
 
    	
Account No. :
    	
 
    	
0011812228
    
	
12
    	
 
    	
Permanent Account Number
    	
 
    	
AACCD4923A
    
	
13
    	
 
    	
Tax Account Number
    	
 
    	
DELD09632A
    
	
13
    	
 
    	
NEFT Code :
    	
 
    	
-
    
	
14
    	
 
    	
RTGS Code :
    	
 
    	
IFSC:   CITI0000002
    
	
15
    	
 
    	
Swift Code * :
    	
 
    	
CITIINBX
    

 

Note:

 

·                  THE LESSEE to check with concerned bank for NEFT / RTGS / SWIFT Codes.

·                  Swift Code is required in case THE LESSEE has an account with HSBC bank.

·                  Bill-wise details against NEFT payments by mail.

 

49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00208-of-00352.parquet"}]]