Document:

Filed by Bowne Pure Compliance

 

Exhibit 4.23

PUBLIC SERVICE COMPANY OF NEW MEXICO

TO

THE BANK OF NEW YORK TRUST COMPANY, N.A.

Trustee

 

SEVENTH SUPPLEMENTAL INDENTURE

Dated as of June 1, 2007

To

INDENTURE

Dated as of March 11, 1998

 

Providing for

2007 Pollution Control Series A Senior Unsecured Notes

 

 

 

SEVENTH SUPPLEMENTAL INDENTURE, dated as of June 1, 2007, between PUBLIC SERVICE COMPANY
OF NEW MEXICO, a corporation duly organized and existing under the laws of the State of New
Mexico (the “Company”), having its principal office at Alvarado Square, Albuquerque, New Mexico
87158, and THE BANK OF NEW YORK TRUST COMPANY, N.A. (as successor to JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank))), a national banking
association, as Trustee (the “Trustee”) under the Indenture dated as of March 11, 1998 between the
Company and the Trustee (the “Indenture”).

RECITALS OF THE COMPANY

The Company has executed and delivered the Indenture to The Chase Manhattan Bank, as Trustee,
to provide for the issuance from time to time of its senior notes (the “Notes”), said Notes to be
issued in one or more series as in the Indenture provided.

The Company has executed and delivered to the Trustee a First Supplemental Indenture, dated as
of March 11, 1998, between the Company and the Trustee to establish the forms and terms of seven
series of Notes, a Second Supplemental Indenture, dated as of March 11, 1998, between the Company
and the Trustee to establish the forms and terms of three series of Notes, a Third Supplemental
Indenture, dated as of October 1, 1999, between the Company and the Trustee to establish the forms
and terms of one series of Notes, a Fourth Supplemental Indenture, dated as of May 1, 2003, between
the Company and the Trustee to establish the forms and terms of one series of Notes, a Fifth
Supplemental Indenture, dated as of May 1, 2003, between the Company and the Trustee to establish
the forms and terms of one series of Notes, and a Sixth Supplemental Indenture, dated as of May 1,
2003, between the Company and the Trustee to establish the forms and terms of one series of Notes,
(the Indenture, as supplemented by said First Supplemental Indenture, said Second Supplemental
Indenture, said Third Supplemental Indenture, said Fourth Supplemental Indenture, said Fifth
Supplemental Indenture and said Sixth Supplemental Indenture, collectively, the “Indenture, as
heretofore supplemented”).

On October 2, 2006, The Bank of New York Trust Company, N.A. succeeded to JPMorgan Chase Bank,
N.A. (formerly JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank)) as Trustee.

Pursuant to the terms of the Indenture, the Company desires to provide for the establishment
of a new series of Notes to be known as its 2007 Pollution Control Series A Senior Unsecured Notes
(the “2007A Notes”), the form and substance of the 2007A Notes and the terms, provisions, and
conditions thereof to be set forth as provided in the Indenture and this Seventh Supplemental
Indenture.

The Company and the City of Farmington, in the County of San Juan, an incorporated
municipality, a body politic and corporate, existing under the constitution and laws of the State
of New Mexico (together with its successors and assigns, the “City”), are concurrently herewith
entering into an Installment Sale Agreement, dated as of June 1, 2007, relating to certain
facilities located at the San Juan Generating Station, between the City, as vendor, and the
Company, as vendee (the “Sale Agreement”), whereby the City has agreed to cooperate with
the Company and will issue and deliver its pollution control revenue bonds under the Pollution
Control Revenue Bond Act, §§ 3-59-1 to 3-59-14 NMSA 1978, as amended.

 

 

 

Pursuant to Ordinance No. 2007-1183, adopted by the City on May 22, 2007, as supplemented by
Resolution No. 2007-1239, adopted by the City on June 12, 2007 (as so supplemented, the
“Ordinance”), the City has (1) authorized and provided for the issuance of $20,000,000 aggregate
principal amount of its Pollution Control Revenue Bonds, 2007 Series A (Public Service Company of
New Mexico San Juan Project) (the “Bonds”) to bear interest at the rate of 5.15% per annum and to
mature on June 1, 2037 and (2) appointed Bank of Albuquerque, N.A., as trustee under the Ordinance
(together with any successor trustee under the Ordinance, the “Bond Trustee”).

Under the Sale Agreement, the Company is obligated to make certain payments to the City,
which the City has pledged and assigned to the Bond Trustee by the terms of the Ordinance, to
provide for the payment of the principal of, and premium, if any, and interest on, the Bonds.

The Company by the Guaranty Agreement, dated as of June 1, 2007 (the “Guaranty”), by and
between the Company and the Bond Trustee, guarantees payment of the principal of, and interest on
the Bonds (the “Guaranteed Amounts”) and agrees to issue its 2007A Notes, to be delivered to the
Bond Trustee, as security for the performance of the Company’s obligation under the Guaranty to
pay the Guaranteed Amounts.

Pursuant to an Insurance Agreement (“Bond Insurance Agreement”), dated as of June 26, 2007,
between the Company and Financial Guaranty Insurance Company (the “Bond Insurer”), payment of the
principal of, and interest on the Bonds, when due, will be insured by a Municipal Bond New Issue
Insurance Policy for the Bonds (“Bond Insurance Policy”) to be issued by the Bond Insurer
simultaneously with the issuance of the Bonds.

Section 9.01 of the Indenture provides that, without the consent of any Holders, the Company,
when authorized by a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental to the Indenture as in said Section 9.01 provided,
and the Company desires to amend the Indenture, as heretofore supplemented, as hereinafter
provided, and has requested that the Trustee join in the execution and delivery hereof.

All things necessary to make this Seventh Supplemental Indenture a valid agreement of the
Company, and to make the 2007A Notes, when executed by the Company and authenticated and delivered
by the Trustee, the valid obligations of the Company, have been done.

NOW, THEREFORE, THIS SEVENTH SUPPLEMENTAL INDENTURE WITNESSETH:

For and in consideration of the premises and the acceptance of the 2007A Notes by the Bond
Trustee under the Ordinance as collateral security for the Bonds and the issuance of the Bond
Insurance Policy by the Bond Insurer, and for the purpose of setting forth, as provided in the
Indenture, the form and substance of the 2007A Notes and the terms, provisions, and
conditions thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders
of the 2007A Notes, as follows:

 

2

 

ARTICLE ONE

GENERAL TERMS AND CONDITIONS 

OF THE 2007A NOTES

SECTION 1.01. There shall be and is hereby authorized a new series of Notes designated the
“2007 Pollution Control Series A Senior Unsecured Notes”. The 2007A Notes shall be limited in
aggregate principal amount to $20,000,000. The 2007A Notes shall mature, and the principal thereof
shall be due and payable together with all accrued and unpaid interest thereon, on June 1, 2037.
Subject to the provisions of Section 1.03 hereof, the 2007A Notes shall bear no interest until an
Initial Interest Accrual Date, if any, has been determined in accordance with Section 1.03 hereof.
The 2007A Notes shall be issued in the form of registered Notes without coupons, in denominations
of $1,000 and any integral multiple thereof. Each of the 2007A Notes shall be dated as of the date
of its authentication.

SECTION 1.02. The 2007A Notes shall be issued to and registered in the name of the Bond
Trustee under the Ordinance and shall be non-transferable, except as may be required to effect
transfer to any successor trustee to the Bond Trustee under the Ordinance. Principal of, and
premium, if any, and interest on the 2007A Notes will be payable, and registration of transfer and
exchanges of the 2007A Notes may be effected, and notices and demands to or upon the Company in
respect of the 2007A Notes and the Indenture, as heretofore supplemented, and as may hereafter be
supplemented from time to time, may be served at the office or agency of the Company maintained for
that purpose which shall be the Corporate Trust Office of the Trustee. The 2007A Notes shall be
deemed fully paid, and the obligation of the Company thereunder shall be terminated, to the extent
and in the manner provided in Section 1.05 hereof.

SECTION 1.03. The 2007A Notes shall be issued to the Bond Trustee to secure the obligations
of the Company under the Guaranty to pay the Guaranteed Amounts. In the event of failure by the
Company to make any payment of any Guaranteed Amounts when and as required by the Company under
the Guaranty, the 2007A Notes shall bear interest at the rate of 5.15% per annum from the last day
to which interest on the Bonds has been paid in full prior to the failure of the Company to pay
such Guaranteed Amounts or, if interest on the Bonds has never been paid in full, from the date of
the original issuance of the Bonds (such date being herein defined as the “Initial Interest
Accrual Date”), and interest at such rate shall be payable on the semi-annual date on which
interest is due with respect to the Bonds (i.e., June 1 and December 1) in each year (each an
“Interest Payment Date”), commencing on the first Interest Payment Date of the Bonds following the
Initial Interest Accrual Date, until the principal of the 2007A Notes shall be paid or made
available for payment.

The Trustee may conclusively presume that no payments with respect to interest on the 2007A
Notes are due unless and until the Trustee shall have received a written certificate from the Bond
Trustee, signed by an authorized officer of the Bond Trustee, certifying that the Company has
failed to make a payment of any Guaranteed Amount when and as required to be
made by it under the Guaranty and specifying such Guaranteed Amount, the Initial Interest Accrual
Date, the Interest Payment Date(s) and such other terms as shall be applicable to the payment of
interest on the 2007A Notes. The Trustee may rely and shall be fully protected in acting upon any
such certificate and shall have no duty with respect to the terms specified in any such
certificate other than to make them available for inspection by the Company.

 

3

 

SECTION 1.04. The 2007A Notes shall be redeemed, in whole or in part, at the principal
amount thereof plus any premium, as hereinafter provided, and any accrued and unpaid interest from
the Initial Interest Accrual Date to their redemption date, if the Bond Trustee notifies the
Trustee in writing that Bonds are subject to redemption as provided in Section 3.02 of the
Ordinance. Any such notice must be received by the Trustee no later than five days (unless a
shorter period of time is acceptable to the Trustee) prior to any redemption date fixed for the
Bonds to be redeemed and shall specify the principal amount of such Bonds anticipated as of the
date of such notice to be redeemed, the date fixed for their redemption, the redemption premium,
if any, and the amount of accrued and unpaid interest anticipated to be paid thereon. In the
event such notice is given to the Trustee as provided above, the redemption date of the 2007A
Notes shall be the date on which the Bonds are fixed for redemption, and on such date the said
2007A Notes shall become due and payable in the same principal amount as the Bonds in fact
redeemed pursuant to Section 3.01 of the Ordinance. The redemption price payable in respect of
the 2007A Notes shall include a premium in the event (and only in the event) that any redemption
premium is payable in respect of the corresponding Bonds in fact redeemed pursuant to Section 3.01
of the Ordinance, and, in such event, the amount of such premium in respect of the redemption
price of the 2007A Notes shall be an amount equal to the redemption premium so payable in respect
of such Bonds. The Company shall deposit in trust with the Trustee on the redemption date an
amount of money sufficient to pay the principal amount, plus any premium and accrued and unpaid
interest, if any, to the date fixed for redemption on the 2007A Notes to be redeemed (the
“Redemption Price”). Upon presentation to the Trustee of any of the 2007A Notes by the Bond
Trustee for payment of the Redemption Price, such 2007A Notes so presented shall be redeemed and
paid in full. However, if, in lieu of presenting the 2007A Notes due for redemption, the Bond
Trustee shall deliver such 2007A Notes to the Trustee for cancellation, then, and in that event,
subject to Section 1.05 hereof, such of the 2007A Notes so presented for cancellation shall be
deemed fully paid, and if any monies shall have been deposited with the Trustee for such
redemption, then such moneys shall be paid over to the Company, and the 2007A Notes so presented
for cancellation shall be canceled in accordance with Section 1.05 hereof.

SECTION 1.05. Upon surrender by the Bond Trustee or the Company to the Trustee hereunder of
any of the 2007A Notes for cancellation, such Notes shall be canceled by the Trustee and delivered
to the Company and shall be deemed fully paid and the obligations of the Company thereunder
terminated.

SECTION 1.06. The 2007A Notes shall be defeasible pursuant to Section 13.02 and Section
13.03 of the Indenture.

SECTION 1.07. Pursuant to Section 5.01(7) of the Indenture, the following is added as an
Event of Default with respect to, and only with respect to, the 2007A Notes if and so
long as the Bond Insurance Policy is in full force and effect and the Bond Insurer is not in
default thereunder: “the occurrence of an ‘Event of Default’ specified and as defined in Section
5.01 of the Bond Insurance Agreement.”

 

4

 

SECTION 1.08. If and so long as the Bond Insurance Policy is in full force and effect and the
Bond Insurer is not in default thereunder, (i) the Trustee shall promptly notify the Bond Insurer
of any written notice which the Trustee receives from the Bond Trustee with respect to the 2007A
Notes and of any proposed amendment to the Indenture or this Supplemental Indenture which the
Trustee receives from the Company or the Bond Trustee and (ii) the Bond Insurer shall be entitled
to exercise all rights under and in accordance with the Indenture, as heretofore supplemented and
as may hereafter be supplemented and amended (including voting rights) in respect of the 2007A
Notes of the Bond Trustee as Holder (or assignee) of the 2007A Notes, and the Trustee shall be
required to accept notice from, and the direction of, the Bond Insurer in connection with any such
exercise of rights under and in accordance with the Indenture as heretofore supplemented and as
hereafter may be supplemented. All notices required by this Section 1.08 to be given by the
Trustee to the Bond Insurer shall be subject to Section 1.05 of the Indenture, as heretofore
supplemented and as may hereafter be supplemented, and shall be given to the Bond Insurer at the
following address:

Financial Guaranty Insurance Company

125 Park Avenue

New York, NY 10017

Attention: Paul R. Morrison

Facsimile No.: 212-312-2707

ARTICLE TWO

FORM OF THE 2007A NOTES

SECTION 2.01. The 2007A Notes and the Trustee’s certificate of authentication to be
endorsed thereon are to be substantially in the following form:

Pursuant to Section 1.02 of the Seventh Supplemental Indenture dated as of June 1, 2007,
supplemental to the Indenture, dated as of March 11, 1998, between Public Service Company of New
Mexico and The Bank of New York Trust Company, N.A. (as successor to JPMorgan Chase Bank, N.A.
(formerly JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank))), as Trustee, as
supplemented, this Note is nontransferable, except as may be required to effect transfer to any
successor trustee to the Bond Trustee (as defined herein).

PUBLIC SERVICE COMPANY OF NEW MEXICO

2007 Pollution Control Series A Senior Unsecured Note

 

5

 

			
	No.
	 	$                    

Due: June 1, 2037

PUBLIC SERVICE COMPANY OF NEW MEXICO, a corporation organized and existing under the laws of
the State of New Mexico (herein called the “Company” which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , as trustee under the Ordinance (defined below), on June 1, 2037 (unless this
Note shall have been called for previous redemption and provision made for the payment of the
redemption price thereof), the principal sum of                      Dollars ($                    ) and to
pay interest thereon from the Initial Interest Accrual Date (defined below) until the principal
hereof is paid or made available for payment, at the rate of 5.15% per annum payable on each date
as such interest on the Bonds (defined below) shall from time to time be due and payable in each
year (each such date being herein called an “Interest Payment Date”), commencing on the first
Interest Payment Date following the Initial Interest Accrual Date.

Payment of the principal of, and premium, if any, and any such interest on this Note will be
made at the office or agency of the Company maintained for that purpose in The City of New York,
in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts.

This Note is one of a duly authorized issue of senior notes of the Company (herein called the
“Notes”), issued and to be issued in one or more series under an Indenture, dated as of March 11,
1998 (herein called the “Indenture”, which term shall have the meaning assigned to it in such
instrument), between the Company and The Bank of New York Trust Company, N.A. (as successor to
JPMorgan Chase Bank, N.A. (formerly JPMorgan Chase Bank (formerly known as The Chase Manhattan
Bank))), as Trustee (herein called the “Trustee,” which term includes any successor trustee under
the Indenture), and reference is hereby made to the Indenture for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and
the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated
and delivered, to all of which the Holder, by accepting this Note, assents. This Note is one of
the series designated on the face hereof, limited in aggregate principal amount to $20,000,000.

The Indenture permits, with certain exceptions as therein provided, the Company and the
Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions
to, or changing in any manner or eliminating any of the provisions of, the Indenture with the
consent of the Holders of not less than a majority in aggregate principal amount of the Notes of
all series then Outstanding under the Indenture, considered as one class; provided, however, that
if there shall be Notes of more than one series Outstanding under the Indenture and if a proposed
supplemental indenture shall directly affect the rights of the Holders of Notes of one or more,
but less than all, of such series, then the consent only of the Holders of a majority in aggregate
principal amount of the Outstanding Notes of all series so directly affected, considered as one
class, shall be required.

 

6

 

The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Notes of each, or all
series, as the case may be, then Outstanding under the Indenture, on behalf of the Holders of all
Notes of such series, to waive compliance by the Company with certain provisions of the Indenture
and permitting the Holders of specified percentages in principal amount of the Notes of each
series Outstanding under the Indenture, on behalf of the Holders of all Notes of such series, to
waive certain past defaults under the Indenture and their consequences, provided, however, that if
any such past default affects more than one series of Notes, the Holders of a majority in
aggregate principal amount of the Outstanding Notes of all such series, considered as one class,
shall have the right to waive such past default, and not the Holders of the Notes of any one such
series. Any such consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note.

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Notes of this series, the Holders of not less than a majority in aggregate principal amount of
the Notes of all series at the time Outstanding in respect of which an Event of Default shall have
occurred and be continuing, considered as one class, shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in principal amount of Notes of all series at the time Outstanding in respect of which an
Event of Default shall have occurred and be continuing, considered as one class, a direction
inconsistent with such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply
to any suit instituted by the Holder of this Note for the enforcement of any payment of principal
hereof or interest hereon on or after the respective due dates expressed herein.

No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Note at the times, place and rate, and in the
coin or currency, herein prescribed.

The Notes of this series have been issued to Bank of Albuquerque, N.A., Albuquerque, New
Mexico, as trustee (herein called the “Bond Trustee”), under Ordinance No. 2007-1183 adopted by
the City of Farmington, New Mexico (herein called the “City”) on May 22, 2007, as supplemented by
Resolution No. 2007-1239 adopted by the City on June 12, 2007 (as so supplemented, the
“Ordinance”), to secure the guarantee by the Company under a Guaranty Agreement dated as of June
1, 2007 between the Company and the Bond Trustee (herein called the “Guaranty”), of payment of the
principal of and interest due (herein called the “Guaranteed Amounts”) on the Pollution Control
Revenue Bonds, 2007 Series A (Public Service Company of New Mexico San Juan Project), issued by
the City under the Ordinance (herein called the “Bonds”).

 

7

 

In the event of failure by the Company to make any payment of any Guaranteed Amount when and
as required to be made by it under the Guaranty, this Note shall bear interest from the last date
to which interest on such Bonds has been paid in full prior to the failure of the Company to pay
such Guaranteed Amount or, if such interest on the Bonds has never been paid in full, from the
date of the original issuance of the Bonds (such date being herein called the “Initial Interest
Accrual Date”), at the rate of 5.15% per annum, payable on the Interest Payment Dates in each
year, commencing on the first Interest Payment Date following the Initial Interest Accrual Date.

The Trustee may conclusively presume that no payments with respect to interest on the Notes
of this series are due unless and until the Trustee shall have received a written certificate from
the Bond Trustee or successor trustee under the Ordinance, signed by an authorized officer of the
Bond Trustee or such successor trustee, certifying that the Company has failed to make a payment
of any Guaranteed Amount when and as required to be made by it under the Guaranty and specifying
such Guaranteed Amount, the Initial Interest Accrual Date, the Interest Payment Date(s) and such
other matters, if any, as shall be pertinent to the payment of interest on the Notes of this
series. The Trustee may rely and shall be fully protected in acting upon any such certificate and
shall have no duty with respect to the matters specified in any such certificate other than to
make it available for inspection by the Company.

Upon the surrender for cancellation, at any time or from time to time, of Notes of this
series by the Bond Trustee or any successor trustee under the Ordinance, or by the Company to the
Trustee, the Notes so surrendered shall be deemed fully paid and the obligations of the Company
thereunder shall be terminated, and such Notes shall be canceled by the Trustee and delivered to
the Company.

This Note is nontransferable except to effect transfer to any successor trustee to the Bond
Trustee, any such transfer to be made as provided in the Indenture and subject to certain
limitations therein set forth, by the registration of transfer of this Note in the Note Register,
upon surrender of this Note for registration of transfer at the office or agency of the Company in
any place where the principal of and any premium and interest on this Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Note Registrar, duly executed by the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Notes of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the successor Bond
Trustee.

If an Event of Default with respect to Notes of this series shall occur and be continuing,
the principal of the Notes of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

No recourse shall be had for the payment of the principal of or premium, if any, or interest,
if any, on any Notes, or any part thereof, or for any claim based thereon or otherwise in respect
thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement
under the Indenture, against any incorporator, stockholder, employee, officer or director, as
such, past, present or future of the Company or of any predecessor or successor
corporation (either directly or through the Company or a predecessor or successor corporation),
whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly agreed and understood that the
Indenture and all Notes are solely corporate obligations, and that no personal liability
whatsoever shall attach to, or be incurred by, any incorporator, stockholder, employee, officer or
director, past, present or future, of the Company or of any predecessor or successor corporation,
because of the indebtedness hereby authorized or under or by reason of any of the obligations,
covenants or agreements contained in the Indenture or in any of the Notes or to be implied
herefrom or therefrom, and that any such personal liability is hereby expressly waived and
released as a condition of, and as part of the consideration for, the execution of the Indenture
and the issuance of the Notes.

 

8

 

The Notes of this series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and
subject to certain limitations therein set forth, Notes of this series are exchangeable for a like
aggregate principal amount of Notes of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

The Notes of this series shall be redeemable as provided in the Seventh Supplemental
Indenture, dated as of June 1, 2007, supplemental to the Indenture.

All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

Unless the certificate of authentication hereon has been executed by the Trustee referred to
below by manual signature, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal.

	 	 	 	 	 
	 	PUBLIC SERVICE COMPANY OF NEW MEXICO

 	 
	 	By:  	
 	 
	 	 	[Title] 	 
	 	 	 	 
	 

 

9

 

Attest:

                                        

[Assistant] Secretary

CERTIFICATION OF AUTHENTICATION

This is one of the Notes of the series designated therein referred to in the
within-mentioned Indenture.

Dated:

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	
 	 
	 	 	Authorized Signatory             	 
	 	 	 	 
	 

ARTICLE THREE

ORIGINAL ISSUE OF 2007A NOTES

SECTION 3.01. 2007A Notes in the aggregate principal amount of $20,000,000 may, upon
execution of this Seventh Supplemental Indenture, or from time to time thereafter, be executed on
behalf of the Company by any officer or employee authorized to do so by a Board Resolution under
its corporate seal affixed thereto or reproduced thereon attested by its Secretary or by one of its
Assistant Secretaries and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said 2007A Notes in accordance with a Company Order delivered to
the Trustee by the Company, all pursuant to and in accordance with Section 3.03 of the Indenture,
as heretofore amended.

ARTICLE FOUR

PAYING AGENT AND REGISTRAR

SECTION 4.01. The Bank of New York Trust Company, N.A. will be the Paying Agent and
Note Registrar for the 2007A Notes.

 

10

 

ARTICLE FIVE

AMENDMENT

SECTION 5.01. The Indenture, as heretofore supplemented, is hereby amended by deleting the
defined term “Corporate Trust Office” in Section 1.01 in its entirely and replacing it with the
following:

“‘Corporate Trust Office’ means the office of the Trustee at which at any particular time its
corporate trust business in Los Angeles, California shall be principally administered, which office
as of the date of this instrument is located at 700 South Flower Street, Suite 500, Los Angeles,
California 90017, except that with respect to presentation of Notes for payment or for registration
of transfer or exchange, such term shall mean the office or agency of the Trustee at which at any
particular time its corporate agency business shall be conducted, which office at the date of this
instrument is located at 101 Barclay Street, New York, New York 10286; Attention: Corporate Trust
Division — Corporate Finance Unit, or, in the case of any of such offices or agency, such other
address as the Trustee may designate from time to time by notice to the Holders and the Company.”

ARTICLE SIX

SUNDRY PROVISIONS

SECTION 6.01. The Company hereby covenants that so long as any of the 2007A Notes
shall remain outstanding, the Company shall deliver to the Trustee as soon as available copies
(certified by an officer or employee of the Company to be true) of the Ordinance, the Sale
Agreement, the Guaranty and copies of any supplements, amendments or replacements thereto,
together with such other documents and instruments as the Trustee may reasonably request from time
to time in connection with the transactions contemplated hereby. The Trustee shall have no duty
to examine or take any other action with respect to any such documents or instruments so received
by it other than to retain in its files any of same which it so receives and to make same
available for inspection during normal business hours by any owner of the 2007A Notes.

SECTION 6.02. Except as otherwise expressly provided in this Seventh Supplemental Indenture
or in the form of the 2007A Notes or otherwise clearly required by the context hereof or thereof,
all terms used herein or in said form of the 2007A Notes that are defined in the Indenture shall
have the several meanings respectively assigned to them thereby.

SECTION 6.03. The Indenture, as heretofore supplemented and as supplemented and amended by
this Seventh Supplemental Indenture, is in all respects ratified and confirmed, and this Seventh
Supplemental Indenture shall be deemed part of the Indenture in the manner and to the extent herein
and therein provided.

SECTION 6.04. The Trustee hereby accepts the trusts herein declared, provided, created,
supplemented, or amended and agrees to perform the same upon the terms and conditions herein and in
the Indenture set forth and upon the following terms and conditions:

 

11

 

The Trustee shall not be responsible in any manner whatsoever for or in respect of
the validity or sufficiency of this Seventh Supplemental Indenture or for or in
respect of the recitals contained herein, all of which recitals are made by the
Company solely. In general, each and every term and condition contained in Article
VI of the Indenture shall apply to and form part of this Seventh Supplemental
Indenture with the same force and effect as if the same were herein set forth in
full with such omissions, variations, and insertions, if any, as may be appropriate
to make the same conform to the provisions of this Seventh Supplemental Indenture.

To the extent permitted by Section 6.01 of the Indenture, and without limitation of
Section 6.03 of the Indenture, the Trustee may rely and shall be protected in
acting upon any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other evidence
of indebtedness, or other paper or document (including, without limitation, the
Ordinance, the Sale Agreement, the Guaranty, and any notice, certificate, or other
document provided for in the Ordinance, the Sale Agreement or the Guaranty)
believed by the Trustee to be genuine and to have been signed or presented by the
proper party or parties.

SECTION 6.05. This Seventh Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

 

12

 

IN WITNESS WHEREOF, the parties hereto have caused this Seventh Supplemental Indenture to be
duly executed as of the day and year first above written.

	 	 	 	 	 
	 	PUBLIC SERVICE COMPANY OF NEW MEXICO

 	 
	 	By:  	                                              /s/ Wendy A. Carlson
 	 
	 	 	Wendy A. Carlson 	 
	 	 	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, N.A., as Trustee

 	 
	 	By:  	                                              /s/ Raymond Torres
 	 
	 	 	Raymond Torres 	 
	 	 	Assistant Vice President 	 
	 

 

13ex101.htm

     

    
      

    

     

    EXHIBIT
      10.1

    
      
         

        MEMORANDUM
          OF AGREEMENT

        

        KNOW
          ALL
          MEN BY THESE PRESENTS:

        

            This
          Memorandum of Agreement made, executed, and entered into in the City of
          Pasig,
          Philippines, by and between:

        

        ROSHAN
          COMMERCIAL CORP., a corporation duly organized and existing under and
          by virtue of the laws of the Philippines with principal office at 3rd Floor,
          RCC
          Center, 104 Shaw Blvd.,  Pasig City, represented in this contract by
LACHMAN T. CHATLANI, of legal age, as President, hereinafter
          referred to as the LESSOR;

        
          	
                  -

                	
                  A
                    N D  -

                

        

        MBS
          TEK CORPORATION with address at 3rd Floor Astillero Bldg, Oro Site,
          Legaspi City herein herein represented by MR. FRANCIS
          CASTRO, as Country Manager, hereinafter referred
          to as the LESSEE.

        

        WITHNESSETH
          THAT:

        

            Whereas,
          the LESSOR is the owner of a commercial building known and designated as
          RCC
          Bldg., situated at No. 104 Shaw Boulevard, Pasig City

        

            Whereas,
          the LESSEE has current lease contracts with the LESSOR for spaces in the
          aforesaid building as follows:

              

        
          	 	  Total
                  Area	 Expiry
                  date	 	 
	
                  1st  Floor
                    Units A&B

                	 483
                  sq meters (approximate)   	 December
                  31, 2007	 	 
	
                  (under
                    MBS Tek) 

                	 2
                  parking slots	 	 	 
	 	 	 	 	 
	
                  6th
                    Floor Unit
                    B

                	 296
                  sq meters (approximate) 	 March
                  31, 2008	 	 
	
                  (under
                    SL Tech)

                	 	 	 	 

        

        

        Now,
          therefore, for and in consideration of the foregoing premises, LESSOR and
          LESSEE
          hereby mutually agree to the following:

        

        
          	
                  a.  

                	
                  the
                    above LEASE CONTRACTS shall be extended and expire on August
                    31,
                    2008

                

        

        

        
          	
                  b.  

                	
                  the
                    escalation clauses provided in the above original contracts shall
                    be
                    applicable for the extended period until August 31,
                    2008.

                

        

        

        
          	
                  c.  

                	
                  The
                    Lease Rates for the extended period shall remain valid until
                    August 31,
                    2009, if and when LEASE CONTRACTS are renewed by both
                    parties.

                

        

        

        
          	
                  d.  

                	
                  Any
                    renewal or extension after August 31, 2009 shall be subject to
                    a 5% annual
                    escalation

                

        

        

        
          	
                  e.  

                	
                  The
                    LESSEE shall have the option to renew the Contract in six (6)
                    month lease
                    periods / increments for up to another 3 years commencing on
                    01 September,
                    2008.

                

        

        

        
          	
                  f.  

                	
                  The
                    LEASE CONTRACTS for the above units shall now be co-terminus
                    with the new
                    LEASE CONTRACTS being executed for units 2 (entire second floor)
                    and Unit
                    6B

                

        

         

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
 

        
          	
                  g.  

                	
                  That
                    the LEASE Contracts shall in no way be deemed extended or renewed
                    beyond
                    the extended term unless confirmed by both parties on or before
                    six (6)
                    months prior to the expiration of the respective
                    Contracts.

                

        

        

        
          	
                  h.  

                	
                  All
                    other terms and condition of the LEASE CONTRACTS shall remain
                    the
                    same.

                

        

        

        This
          agreement shall be binding on the parties’ heirs and
          successors-in-interest.

        

        

        IN
          WITNESS WHEREOF, the parties have hereto executed this instrument on
          this 8th day of August, 2007.

         

         

        
          	 ROSHAN
                  COMMERCIAL CORP. 	 MBS
                  TEK CORPORATION	 	 
	 	 	 	 
	 Represented
                  by:   	 Represented
                  by:   	 	 
	 	 	 	 
	 /s/
                  Lachman T. Chatlani 	 /s/
                  Francis Castro	 	 
	 LACHMAN
                  T. CHATLANI	 MR.
                  FRANCIS CASTRO	 	 
	 President 	 Country
                  Manager	 	 
	 LESSOR 	 LESSEE	 	 
	 	 	 	 
	
                   WITNESSES

                	 	 
	 /s/
                  Mercedita L. Pedrenia 	 /s/
                  Emelda V. Perez	 	 
	 Mercedita
                  L. Pedrenia	 Emelda
                  V. Perez	 	 

        

         

        

        
 

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

        

        

        ACKNOWLEDGEMENTS

        

        REPUBLIC
          OF THE PHILIPPINES)

        CITY
          OF
          PASIG                        )

        METRO
          MANILA

        

        

              BEFORE
          ME, THIS DAY OF AUGUST 8, 2007 IN THE CITY OF PASIG, METRO MANILA,
          PHILIPPINES, PERSONALLY APPEARED.

         

         

        
          	 NAME 	 DATE	 PLACE
                  ISSUED	 
	 	 	 	 
	 LACHMAN
                  T. CHATLANI 	 March
                  09, 2007	 Pasig
                  City	 
	 FRANCIS
                  CASTRO	 July
                  06, 2007	 Pasig
                  City	 

        

        

         

        KNOWN
          to
          me to be same persons who executed the foregoing instrument, and they
          acknowledged to me that the same is their free act and deed.

        

        This
          instrument consisting of THREE (03) pages, including the page on which
          this
          acknowledgement is written, has been signed on the left margin of each
          and every
          page thereof by FRANCIS CASTRO and LACHMAN T. CHATLANI, their witnesses,
          and
          sealed with my notarial seal.

        

        IN
          WITNESS WHEREOF, I have hereunto set my hand, the day, month, year, and
          place
          above written.

        

        

                                                                                 /s/
           NOTARY PUBLIC

        

        

        NOTARY
          REGISTRATION No.________

        Doc
          No.
298

        Page
          No.
61

        Book
          NO.
XXXIV

        Series
          of
          2007

         

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        
 

        

        

        C
          O N T R A C T  O F  L E A S E

        

        KNOW
          ALL
          MEN BY THESE PRESENTS:

        

            This
          Contract of Lease made, executed, and entered into in the City of Pasig,
          Philippines, by and between:

        

        ROSHAN
          COMMERCIAL CORP., a corporation duly organized and existing under and
          by virtue of the laws of the Philippines with principal office at 3rd Floor,
          RCC
          Center, 104 Shaw Blvd.,  Pasig City, represented in this contract by
LACHMAN T. CHATLANI, of legal age, as President, hereinafter
          referred to as the LESSOR;

        
          	
                  -

                	
                  A
                    N D  -

                

        

        MBS
          TEK CORPORATION with address at 3rd
          Floor Astillero
          Bldg., Oro Site, Legaspi City herein represented by MR. FRANCIS
          CASTRO, as Country Manager, hereinafter referred
          to as the LESSEE.

        

        WITHNESSETH
          THAT:

        

            Whereas,
          the LESSOR is the owner of a commercial building known and designated as
          RCC
          Bldg., situated at No. 104 Shaw Boulevard, Pasig City

        

            Whereas,
          the LESSEE has agreed to lease from the LESSOR the aforesaid portion referred
          to
          as the 'LEASED PREMISES" for its operations, more particularly described
          as:

                                                                                 

        
          
            	 	  Total
                    Area	 	 	 
	
                    2nd   Floor
                      Unit (in its entirety)

                  	  
                    526 square meters	 	 	 
	
                     

                  	 	 	 	 

          

        

        Now,
          therefore, for and in consideration of the foregoing premises and the mutual
          covenants and agreements hereinafter set forth, the LESSOR hereby leases
          unto
          the LESSEE, and the LESSEE hereby accepts and takes from the LESSOR and
          acknowledges receipt of the premises subject to the following terms and
          conditions;

        

        LEASE
          RATES

        
          	
                  1.  

                	
                  That
                    the total monthly rental herein agreed upon shall be One Hundred
                    Fifty
                    Seven Thousand Five Hundred Eighty Nine & 60/100 Pesos Only (P
                    157,589.60) inclusive of VAT and after deducting withholding
                    taxes, to be
                    paid by the LESSEE to the LESSOR within the first five (5) days
                    of each
                    calendar month, without necessity of demand, computed as
                    follows:

                

        

         

        
          
            	 Leased
                    area at 2nd Floor described above	 	 	 	 
	 	 	 	 	 
	 Monthly
                    Lease                                                                 
                    	 P
                    147,280.00	 	 	 
	 12%
                    VAT	      17,673.60	 	 	 
	 	 	 	 	 
	 Total  	 P  164,953.60	 	 	 
	 Less:
                    5% withholding
                    tax                 	         7,364.00	 	 	 
	 	 	 	 	 
	 Total
                    Due
                    Monthly                                      	P
                    157,589.60	 	 	 

          

        

         

        

        LEASE
          TERM

        
          	
                  1.  

                	
                  That
                    the term of this Contract shall commence on 01 September, 2007
                    and expire
                    on 31 August, 2008 unless otherwise
                    renewed.

                

        

        

        
          	
                  2.  

                	
                  The
                    LESSOR shall turnover the LEASED PREMISES to the LESSEE on or
                    before 01
                    August 1, 2007 with the period prior to September 01 as free
                    of
                    charge.

                

        

        

        
          	
                  3.  

                	
                  Payment
                    of rentals shall commence on September 1, 2007
                    .

                

        

        

        
          	
                  4.  

                	
                  In
                    the event LESSOR shall delay turnover of the LEASED PREMISES
                    to LESSEE,
                    LESSOR shall reduce the monthly rental due by   LESSEE by
                    Fifty Thousand Pesos (P 50,0000) per month of delay and rentals
                    shall
                    commence only after turnover with a one month grace period free
                    of
                    charge.

                

        

        

        
          	
                  5.  

                	
                  That
                    the Contract shall in no way be deemed extended or renewed beyond
                    the
                    original term for any cause or reason whatsoever, but only by
                    negotiations
                    and confirmation of extension by both parties on or before six
                    (6) months
                    prior to the expiration of this
                    Contract.

                

        

        

        
          	
                  6.  

                	
                  The
                    LESSEE shall have the option to renew the Contract in six (6)
                    month lease
                    periods / increments for up to another 3 years commencing on
                    01 September,
                    2008.

                

        

        

        INCREASE
          IN LEASE RATES

        
          	
                  1.  

                	
                  That
                    the LEASE rates shall be adjusted with an escalation/increase
of
                    FIVE PERCENT (5%) annually effective September 01,
                    2008.

                

        

         

        

        
          	
                  2.  

                	
                   That
                    the LESSEE shall be notified in writing by the LESSOR of any
increase
                    / adjustment of real estate taxes and other taxes that may be
                    imposed per
                    government ordinance/ directive/ circular / affecting the subject
                    property
                    that may be imposed by said government
                    authority;

                

        

        
          

          
            	
                    3.  

                  	
                    That
                      the LESSOR reserves the right to apportion on a pro rata basis
                      of all the
                      leased spaces among all the leases of the building as additional
                      rental to
                      cover said increase in real estate or other taxes, provided
                      that, the
                      computation of said increase in rental be subject to LESSEE’S conformity
                      with respect to the computations of apportioning said
                      taxes.

                  

          

        

        
          
             

            
              	
                      4.  

                    	
                      That
                        while a 5% annual escalation is provided in lease rates for
                        renewals, said
                        increase will give way to a higher lease should the LESSOR
                        and LESSEE
                        mutually agree as a result of No. 1 & 2
                        above.

                    

            

          

          
DEPOSITS

        

        
          	
                  1.  

                	
                  That
                    upon execution of this Contract, the LESSEE shall pay to the
                    LESSOR the
                    following:

                

        

         

        
          	
                  A.  

                	
                  SECURITY
                    DEPOSIT in the amount of Two Hundred Ninety Four Thousand Five
                    Hundred
                    Sixty Pesos only (P 294,560.00) equivalent
                    to   two   (2) months rent.  Said
                    SECURITY DEPOSIT cannot be applied to current rentals and will
                    be returned
                    to LESSEE without   interest upon termination of this
                    Contract, less whatever amounts the LESSEE may be liable to the
                    LESSOR for
                    unpaid rentals, utility charges, damages, and other liabilities
                    in
                    connection with this Contract.

                

        

        

          
          
           

          
            	
                    B.  

                  	
                    RENT
                      DEPOSIT in the amount of Two Hundred Ninety Four Thousand Five
                      Hundred Sixty Pesos only (P 294,560.00) equivalent
                      to   two   (2) months
                      rent, to be applied against the rent for the last two (2) months
                      of
                      this LEASE CONTRACT

                  

          

        

               

        
          	
                   
                    2.  

                	
                  That
                    said SECURITY DEPOSIT  may be increased and adjusted to
                    conform  with  the  escalated  lease
                    rates for the succeeding period if and when the Contract shall
                    be
                    renewed  and shall  be  payable on the first
                    five (5) days of the renewal
                    period.

                

        

        

        USE
          OF LEASED AREAS

        
          	
                  1.  

                	
                  That
                    LESSEE shall not assign the lease or sublease the whole or any
                    part
                    thereof of the LEASED PREMISES
                    without  first  obtaining  the consent
                    of the
                    LESSOR in writing, which shall not be unreasonably withheld,
conditioned
                    or delayed.

                

        

           

        
          	
                  2.  

                	
                  That
                    the LESSEE shall use the LEASED PREMISES for lawful purposes
                    only and will
                    comply with
                    all  regulations  and  ordinances  of
                    the local
                    and  national  government  affecting  the
                    business conducted in the LEASED
                    PREMISES.

                

        

        

        
          	
                  3.  

                	
                  That
                    the LESSEE shall not make any material alterations, additions,
                    or
                    improvements in the LEASED PREMISES without the written consent
                    of the
                    LESSOR, which shall not be withheld, conditioned or
                    delayed.  Any all alterations, additions to, and improvements
                    upon the premises made by the LESSEE with the consent of the
                    LESSOR shall
                    forthwith, upon termination of the lease contract, belong to
                    the LESSOR
                    without reimbursement, unless otherwise agreed.  Any material
                    changes, alterations, additions or improvements shall require
                    submission
                    of plans and details for approval, which shall not be unreasonably
                    withheld, conditioned or delayed, before commencement of
                    work.

                

        

        

        Any
          alterations or additions made without the written consent of the LESSOR
          may be
          ordered removed by the LESSOR at the expense of the LESSEE.

           

        
          	
                  4.  

                	
                   That
                    the LESSEE shall pay for any damages or breakage of any fixtures
                    or any
                    portion of the building caused intentionally or wrongfully by
                    its
                    employees, agents, or persons allowed access
                    to  the  LEASED
                    PREMISES.  The  LESSOR  may  consider  the  act
                    (s) causing such damage or breakage as valid ground(s) for terminating
                    this  Contract as provided
                    herein.

                

        

      

    

     

    INSPECTION
      OF LEASED PREMISES

    1.       That   the   LESSEE  shall   allow  the  LESSOR   or  his   duly   authorized
      representative,   provided   the   latter
      undertakes prior notification to LESSEE
      and  is   accompanied   by  a  duly
      authorized representative of  the LESSEE,  to enter the
      LEASED PREMISES during normal office hours
      or  at  any  reasonable time agreed to by
      LESSEE,  to check compliance with this Contract if LESSOR has reason
      to believe there is noncompliance, make
      alterations  or  repairs,  or  for  such  other
      purposes as may be reasonably necessary for the operation or proper maintenance
      of the LEASED PREMISES.

    

    SURRENDER
      OF LEASED PREMISES

    
      	
              1.  

            	
              That  the  LESSEE,  upon   termination  of  the  Contract,  shall

            

    

    peacefully,
      and
      without  necessity  of  demand,  deliver  upon
      to the LESSOR the LEASED PREMISES, vacant, and in the same condition, reasonable
      wear and tear excepted, in which the LESSEE received the LEASED PREMISES at
      the
      commencement of the Contract.

    

    
      	
              2.  

            	
              That
                should LESSEE delay surrender of premises upon termination of
                the

            

    

    Contract,  LESSEE  shall  be  responsible  to  the  LESSOR
      for all actual and verifiable damages incurred which LESSOR shall suffer by
      reason  thereof  and  will  indemnify
      LESSOR against any and all claims made resulting from said delay.

    

    
      	
              3.  

            	
              That  if  at  any   time  during   the  Contract,  the  LEASED
                PREMISES are

            

    

    abandoned  or  vacated  for  a  period
      of  more  than one month without written notice of such to
      the LESSOR, the LESSOR shall have the right to enter the same
      by  reasonable
      force  or  otherwise,  without  being
      liable to any prosecution therefore.  The LESSOR will have the right
      to lease the same and receive rent for its own account.

    

    
      	
              4.  

            	
              That
                LESSEE may remove its equipment and its appurtenances that
                are

            

    

    not
      attached to the LEASED PREMISES upon expiration of the Contract, provided it
      does not cause undue damage to the LEASED PREMISES, reasonable wear and tear
      excepted.

    

    

    TRADE
      FIXTURES, MACHINERY, AND EQUIPMENT

    
      	
              1.  

            	
              That
                the LESSOR agrees that the LESSEE shall have the right to
                introduce

            

    

    into
      the
      leased premises trade  fixtures, machinery,  equipment,
      and  furniture as may be necessary
      for  the  conduct  of its business as an office
      and/or showroom
      and    that   the   LESSEE   shall   have  the  right  to  locate   the  same   as  the
      LESSEE  may  deem fit.  However, no machinery and
      equipment shall be installed that may cause unreasonable inconvenience,
      discomfort, and objections from other tenants.

    

    STORAGE
      OF MATERIALS

    1.       That  the
      LESSEE nor the LESSOR shall  bring into, nor store in the LEASED
      PREMISESe any
      highly  inflammable,  explosive,  toxic,  dangerous,  or   prohibited  materials
      and
      substances   not   operate  or   install  therein   any   apparatus,  machinery,   or
      equipment  which   may  cause  obnoxious  odors,  tremors  &  vibrations,
      noise, pollution, or expose the LEASED PREMISES to fire or danger.

    

    TEMPORARY
      / PERMANENT REPAIRS

    
      	
              1.  

            	
              That
                all
                needed  major  repairs  of  the
                building and/or LEASED PREMISES relating to the strength, integrity,
                safety, and general appearance and use and operations by the LESSEE
                shall
                be made immediately within reasonable time and without delay by the
                LESSOR
                at its expense.

            

    

    

    
      	
              2.  

            	
              That
                LESSOR shall be liable to LESSEE, its officers, directors,
                employees

            

    

              and
      agents only for any  damage, death, personal injury or destruction
      as

              a
      result of such repairs which are directly attributable to the
      LESSOR.

    

    
      	
              3.  

            	
              LESSEE,
                its officers, directors, employees and agents shall take all necessary
                and
                prudent precautions to prevent the occurrence of any damage, death,
                personal injury or destruction in the normal course or its operations
                and
                during the construction or implementation of any repairs in the building
                and/or LEASED PREMISES.

            

    

    

    
      	
              4.  

            	
              That  the  LESSEE  shall  undertake  all  minor  repairs  and  maintenance

            

    

              related
      to normal wear and tear of the LEASED PREMISES at its

              reasonable
      expense.

    

    CARE
      OF LEASED PREMISES

    
      	
              1.  

            	
              That
                the LESSEE shall  maintain  the  LEASED
                PREMISES,  the windows, and floors included within the LEASED
                PREMISES in a clean and sanitary condition, free of any garbage or
                obnoxious odors, disturbing noise and/or other disturbances.  In
                the event the LESSEE  fails to discharge  this
                obligation thirty (30) days after its attention is called in writing
                by
                the LESSOR, the
                LESSOR  may  undertake  the  necessary
                cleaning of the leased premises at the reasonable expense of the
                LESSEE,
                if any.

            

    

    

    PAYMENT
      OF UTILITIES

    
      	
              1.  

            	
              That
                the LESSEE shall pay its obligations for utilities promptly as follows
                :

            

    

    POWER
      :       Directly to
      MERALCO;  LESSEE shall be provided a separate

                        meter
      for its power line.

    TELEPHONE:  Directly
      to PLDT / GLOBE

    WATER:     To
      the LESSOR based on Billings/Consumption per sub-meters installed. The LEASED
      PREMISES shall be provided a separate sub-meter for its water
      supply.

    

    ARREARS
      AND LITIGATION

    
      	
              1.  

            	
              That
                the LESSEE agrees to pay a two percent (2%) per month penalty
                on

            

    

    all  arrears  from  due  date
      until fully paid, if assessed by LESSOR. Provided, however, that the LESSOR
      reserves the right to immediately terminate this Contract upon failure by LESSEE
      to pay two
      successive  monthly  rentals  and  bills
      and notice to
      LESSEE,  or  comply  with  any  of  the  other
      material terms  & conditions of this Contract, without prejudice
      to the collection of said penalty.

    

    
      	
              2.  

            	
              That  the  LESSEE  agrees  to  have  this
                Contract governed by the laws of the Government of the Republic of
                the
                Philippines

            

    

    

    
      	
              3.  

            	
              That
                the LESSEE and LESSOR both mutually agree to have Pasig City as the
                venue
                of all court litigations.

            

    

    

    
      	
              4.  

            	
              That  in  case  of  failure  on  the  part
                of the LESSEE to pay rentals for a

            

    

    Period
      of
      two months, LESSEE hereby gives authority to LESSOR or to any of its
      authorized  representatives, thru this Contract, to take possession of
      said LEASED PREMISES, including improvements thereon, without compensation
      to
      the LESSEE
      and  without  necessity  of  resorting  to  any
      court action but in which case, the LESSEE  shall  be
      advised in writing of their failure to comply with the terms and conditions
      of  the Contract by way of reminder before the takeover and given 15
      days grace period for compliance of the Contract.

    

    Failure
      on the part of the LESSEE to update arrears and comply with the Contract within
      the grace period will authorize the LESSOR to:

    

    
      	
              A.  

            	
              Carefully
                Remove all removable improvements and personal
                belongings  and  deposit
                the  same  in  a secure
                warehouse  at  the  reasonable
                expense  of  LESSEE.  LESSEE  will  be
                permitted to be present during such removal.  However, should
                LESSEE fail to appear personally or to send a representative, LESSOR
                may
                proceed even in their absence. LESSOR will not be liable for any
                damage to
                items removed  and stored, unless caused by the intentional or
                wrongful action by LESSOR.

            

    

    

    
      	
              B.  

            	
              Lease
                the LEASED PREMISES to a new LESSEE upon
                takeover.

            

    

    

    PRE-TERMINATION
      OF CONTRACT

    1.     The
      LESSOR may cancel or
      terminate  this  Contract  for  reason
      of non-compliance of any of the material terms, conditions, and rules and
      regulations, by ninety (90) days notice, and in which event, LESSEE shall vacate
      the LEASED PREMISES.

    

    2.      If
      the LESSEE decides, for any cause and without fault of the LESSOR,
      to

    terminate
      this  Contract  prior to  the termination of the
      period agreed upon, the LESSEE shall be liable to the  LESSOR to pay
      the monthly rental for the remaining period of the Contract, unless otherwise
      agreed. If the  LEASED
      PREMISES  shall  have  been  occupied by
      another tenant, then the LESSEE shall be liable to pay only the period when
      the
      LEASED PREMISES remained idle or unoccupied.

    

    LIABILITY
      AND INSURANCE

    
      	
              1.  

            	
              That  the  LESSOR  shall  not  be  liable
                for any losses due to theft or any

            

    

    fortuitous
      or  unforeseen  events  or events that could be
      foreseen but cannot be avoided, arising in the LEASED PREMIES and /or the
      building, unless LESSOR was notified in advance and which is established as
      the
      responsibility and jurisdiction of the LESSOR.

    

    
      	
              2.  

            	
              That
                the LESSOR shall not be liable for any injury or damage to
                LESSEE,

            

    

    its
      employees, agents, or persons allowed access to the LEASED PREMISES, except
      where LESSOR is at fault, negligent, and previously notified of problems or
      concerns.

    

    
      	
              3.  

            	
              That
                the LESSEE will be permitted to undertake insurance coverage for
                its

            

    

    equipment,
      contents and machinery, if any, in  the  LEASED
      PREMISES.  However, LESSEE will be required to furnish LESSOR a copy
      of all  proposed insurance coverage within a week from the date of
      coverage, including renewals thereof.

    

    
      	
              4.  

            	
              That
                the LESSEE shall assume full responsibility for any damage caused
                to

            

    

    the   person  or  property  of   third  persons,  including  death,  while  remaining
      either  casually  or  on  business  in
      any part of the LEASED PREMISES, if  the damage be caused wholly or
      partly through the  fault  or negligence of LESSEE or its
      agents, and further binds itself to hold LESSOR free and harmless from any
      such
      claim or injury or damage.

    

    RULES
      AND REGULATIONS

    
      	
              1.  

            	
              That
                the LESSOR will adopt and promulgate rules and regulations on
                the

            

    

    use,
      care, and security of the building for the good of both the LESSOR and the
      LESSEE.

    

    
      	
              2.  

            	
              That
                said rules and regulations, shall form part of the Contract, be attached
                hereto and incorporated hereing and must be complied with by the
                LESSEE.

            

    

    

    
      	
              3.  

            	
              That  the  LESSOR
                will,  from  time to time, revise, update, and add
                rules

            

    

    and
      regulations and all such future  changes shall be considered as part
      of this Contract provided advance written notice given to LESSEE of such
      changes.

    

    SECURITY

    
      	
              1.  

            	
              That
                the  LESSOR  will  maintain a 24-hour
                security for the building.

            

    

    

    
      	
              2.  

            	
              That
                LESSEE may take additional precautionary / security measures such
                as
                installation of burglar alarms, smoke detectors, and private security
                guards    subject  to  written
                approval of the LESSOR.

            

    

    

    

    JANITORIAL
      SERVICE

    
      	
              1.  

            	
              That  the  LESSOR
                will  maintain a caretaker for the general cleanliness
                of

            

    

    the
      building, particularly the public and common areas.

    

    
      	
              2.  

            	
              That
                the LESSEE will be responsible for the care, maintenance, and
                overall

            

    

    cleaning
      of the LEASED PREMISES, unless otherwise agreed with LESSOR to use its general
      caretaker.

    

    

    OTHERS

    
      	
              1.  

            	
              That
                a mere tolerance on the part of the LESSOR shall not be
                construed

            

    

    as
      a  waiver of its rights to enforce compliance by the LESSEE under any
      and all of the terms and conditions of the Contract.

    

    
      	
              2.  

            	
              That  LESSOR  reserves  the  right  to  terminate  this  Contract  and  /  or

            

    

    demand
      actual damages from LESSEE in the event of any strike,
      picket,  or  the  like  arising  from  any   controversy  between  LESSEE  and   its
      employees or outsiders, and  causing  disturbance,
      disorderliness, or defacement
      and  destruction  of  the LESSOR's property, or
      otherwise carried on in a manner as to create
      a  nuisance  to  LESSOR  or  the  other  tenants
      or cause undue prejudice, harm, or injure their interest.

    

    SEPARABILITY

    1.       That
      the  parties  hereby agree that should any of the provisions
      herein stated be declared invalid or illegal by a competent court, the validity
      or legality of the remaining provisions shall not in any way be affected or
      impaired.

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    This
      contract shall be binding on the parties’ heirs and
      successors-in-interest.

    

    

    IN
      WITNESS WHEREOF, the parties have hereto executed this instrument on
      this 8th day of August, 2007.

     

    
       

      
        	 ROSHAN
                COMMERCIAL CORP. 	 MBS
                TEK CORPORATION	 	 
	 	 	 	 
	 Represented
                by:   	 Represented
                by:   	 	 
	 	 	 	 
	 /s/
                Lachman T. Chatlani 	 /s/
                Francis Castro	 	 
	 LACHMAN
                T. CHATLANI	 MR.
                FRANCIS CASTRO	 	 
	 President 	 Country
                Manager	 	 
	 LESSOR 	 LESSEE	 	 
	 	 	 	 
	
                 WITNESSES

              	 	 
	 /s/
                Mercedita L. Pedrenia 	 	 	 
	 Mercedita
                L. Pedrenia	 	 	 

      

       

    

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    ACKNOWLEDGEMENTS

    

    REPUBLIC
      OF THE PHILIPPINES)

    CITY
      OF
      PASIG                        )

    METRO
      MANILA

    

    

          BEFORE
      ME, THIS DAY OF AUGUST 8, 2007 IN THE CITY OF PASIG, METRO MANILA,
      PHILIPPINES, PERSONALLY APPEARED.

     

     

    
      
        	 NAME 	 DATE	 PLACE
                ISSUED	 
	 	 	 	 
	 LACHMAN
                T. CHATLANI 	 March
                09, 2007	 Pasig
                City	 
	 FRANCIS
                CASTRO	 July
                06, 2007	 Pasig
                City	 

      

       

    

     

    KNOWN
      to
      me to be same persons who executed the foregoing instrument, and they
      acknowledged to me that the same is their free act and deed.

    

    This
      instrument consisting of NINE (09) pages, including the page on which this
      acknowledgement is written, has been signed on the left margin of each and
      every
      page thereof by FRANCIS CASTRO and LACHMAN T. CHATLANI, their witnesses, and
      sealed with my notarial seal.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand, the day, month, year, and place
      above written.

    

    

                                                                             /s/
       NOTARY PUBLIC

    

    

    NOTARY
      REGISTRATION No.________

    Doc
      No.
297

    Page
      No.
61

    Book
      NO. XXXIV

    Series
      of
      2007

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

 

    C
      O N T R A C T  O F  L E A S E

    

    KNOW
      ALL
      MEN BY THESE PRESENTS:

    

        This
      Contract of Lease made, executed, and entered into in the City of Pasig,
      Philippines, by and between:

    

    ROSHAN
      COMMERCIAL CORP., a corporation duly organized and existing under and
      by virtue of the laws of the Philippines with principal office at 3rd Floor,
      RCC
      Center, 104 Shaw Blvd.,  Pasig City, represented in this contract by
LACHMAN T. CHATLANI, of legal age, as President, hereinafter
      referred to as the LESSOR;

    

    
      	
              -

            	
              A
                N D  -

            

    

    

    MBS
      TEK CORPORATION with address at 3rd Floor Astillero Blvd., Oro Site,
      Legaspi City herein represented by MR. FRANCIS
      CASTRO, as Country Manager, hereinafter referred
      to as the LESSEE.

    

    WITHNESSETH
      THAT:

    

        Whereas,
      the LESSOR is the owner of a commercial building known and designated as RCC
      Bldg., situated at No. 104 Shaw Boulevard, Pasig City

    

        Whereas,
      the LESSEE has agreed to lease from the LESSOR the aforesaid portion referred
      to
      as the 'LEASED PREMISES" for its operations, more particularly described
      as:

     

                      

      
        
          	 	  Total
                  Area	 	 	 
	
                  Unit
                    6B  (6th
                    Floor
                    Unit)  

                	  
                  214 square meters	 	 	 

        

      

    

                 

    Now,
      therefore, for and in consideration of the foregoing premises and the mutual
      covenants and agreements hereinafter set forth, the LESSOR hereby leases unto
      the LESSEE, and the LESSEE hereby accepts and takes from the LESSOR and
      acknowledges receipt of the premises subject to the following terms and
      conditions;

         

    
      LEASE
        RATES

      
        	
                1.  

              	
                
                  That
                    the total monthly rental herein agreed upon shall be SIXTY FOUR
                    THOUSAND
                    ONE HUNDRED FOURTEEN AND 40/100 Only    (P 64,114.40)
                    inclusive of VAT and withholding taxes, to be paid by the LESSEE
                    to the
                    LESSOR within the first five (5) days of each calendar month,
                    without
                    necessity of demand, computed as
                    follows:

                

              

      

       

      
        
          	Leased
                  area at 6TH Floor described above	 	 	 	 
	 	 	 	 	 
	 Monthly
                  Lease                                                                 
                  	 P
                  59,920.00	 	 	 
	 12%
                  VAT	      7,190.40	 	 	 
	 	 	 	 	 
	 Total  	 P  67,110.40	 	 	 
	 Less:
                  5% withholding
                  tax                 	       2,996.00	 	 	 
	 	 	 	 	 
	 Total
                  Due
                  Monthly                                      	P
                  64,114.40	 	 	 

        

      

       

    

     

    LEASE
      TERM

    
      	
              1.  

            	
              That
                the term of this Contract shall commence on 01 November, 2007 and
                expire
                on 31 August, 2008 unless otherwise
                renewed.

            

    

    

    
      	
              2.  

            	
              The
                LESSOR shall turnover the LEASED PREMISES to the LESSEE on or before
                October 1, 2007 with the period prior to November 01, 2007 as free
                of
                charge.

            

    

    

    
      	
              3.  

            	
              Payment
                of rentals shall commence on November 1, 2007
                .

            

    

    

    

    
      	
              4.  

            	
              That
                the Contract shall in no way be deemed extended or renewed beyond
                the
                original term for any cause or reason whatsoever, but only by negotiations
                and confirmation of extension by both parties on or before six (6)
                months
                prior to the expiration of this
                Contract.

            

    

    

    
      	
              5.  

            	
              The
                LESSEE shall have the option to renew the Contract in six (6) month
                lease
                periods / increments for up to another 3 years commencing on 01 September,
                2008.

            

    

    

    INCREASE
      IN LEASE RATES

    
      	
              1.  

            	
              That
                the LEASE rates shall be adjusted with an
                escalation/increase

            

    

    of
      FIVE
      PERCENT (5%) annually effective September 01, 2008.

    

    
      	
              2.  

            	
               That
                the LESSEE shall be notified in writing by the LESSOR of
                any

            

    

    increase
      / adjustment of real estate taxes and other taxes that may be imposed per
      government ordinance/ directive/ circular / affecting the subject property
      that
      may be imposed by said government authority;

    

    3.       That
      the LESSOR reserves the right to apportion on a pro rata basis of all the leased
      spaces among all the leases of the building as additional rental to cover said
      increase in real estate or other taxes, provided that, the computation of said
      increase in rental be subject to LESSEE’S conformity with respect to the
      computations of apportioning said taxes.

    

    4.       That
      while a 5% annual escalation is provided in lease rates for renewals, said
      increase will give way to a higher lease should the LESSOR and LESSEE mutually
      agree as a result of No. 1 & 2 above.

    

    DEPOSITS

    
      	
              1.  

            	
              That
                upon execution of this Contract, the LESSEE shall pay to the
                LESSOR

            

    

    the
      following:

    

    
      	
              A.  

            	
              SECURITY
                DEPOSIT in the amount of ONE HUNDRED NINETEEN THOUSAND EIGHT HUNDRED
                FORTY
                Pesos only (P 119,840.00) equivalent
                to   two   (2) months rent.  Said
                SECURITY DEPOSIT cannot be applied to current rentals and will be
                returned
                to LESSEE without   interest upon termination of this
                Contract, less whatever amounts the LESSEE may be liable to the LESSOR
                for
                unpaid rentals, utility charges, damages, and other liabilities in
                connection with this Contract.

            

    

             B.  RENT
      DEPOSIT in the amount of ONE HUNDRED NINETEEN

                 THOUSAND
      EIGHT HUNDRED FORTY Pesos only (P 119,840.00)

                 equivalent
      to   two   (2)  months rent, to be
      applied against the rent for

                 the
      last two (2) months of this LEASE CONTRACT

    

    
      	
              2.  

            	
              That
                said SECURITY DEPOSIT  may be increased and adjusted to
                conform  with  the  escalated  lease
                rates for the succeeding period if and when the Contract shall be
                renewed  and shall  be  payable on the first
                five (5) days of the renewal
                period.

            

    

    

    USE
      OF LEASED AREAS

    
      	
              1.  

            	
              That
                LESSEE shall not assign the lease or sublease the whole or any
                part

            

    

              thereof
      of the LEASED PREMISES
      without  first  obtaining  the consent
      of

              the
      LESSOR in writing, which shall not be unreasonably withheld,

              conditioned
      or delayed.

    

    
      	
              2.  

            	
              That
                the LESSEE shall use the LEASED PREMISES for lawful purposes only
                and will
                comply with
                all  regulations  and  ordinances  of
                the local
                and  national  government  affecting  the
                business conducted in the LEASED
                PREMISES.

            

    

    

    
      	
              3.  

            	
              That
                the LESSEE shall not make any material alterations, additions, or
                improvements in the LEASED PREMISES without the written consent of
                the
                LESSOR, which shall not be withheld, conditioned or
                delayed.  Any all alterations, additions to, and improvements
                upon the premises made by the LESSEE with the consent of the LESSOR
                shall
                forthwith, upon termination of the lease contract, belong to the
                LESSOR
                without reimbursement, unless otherwise agreed.  Any material
                changes, alterations, additions or improvements shall require submission
                of plans and details for approval, which shall not be unreasonably
                withheld, conditioned or delayed, before commencement of
                work.

            

    

    

    Any
      alterations or additions made without the written consent of the LESSOR may
      be
      ordered removed by the LESSOR at the expense of the LESSEE.

    

    4.       That
      the LESSEE shall pay for any damages or breakage of any fixtures or any portion
      of the building caused intentionally or wrongfully by its employees, agents,
      or
      persons allowed access to  the  LEASED
      PREMISES.  The  LESSOR  may  consider  the  act
      (s) causing such damage or breakage as valid ground(s) for terminating
      this  Contract as provided herein.

    

    INSPECTION
      OF LEASED PREMISES

    1.       That   the   LESSEE  shall   allow  the  LESSOR   or  his   duly   authorized
      representative,   provided   the   latter
      undertakes prior notification to LESSEE
      and  is   accompanied   by  a  duly
      authorized representative of  the LESSEE,  to enter the
      LEASED PREMISES during normal office hours
      or  at  any  reasonable time agreed to by
      LESSEE,  to check compliance with this Contract if LESSOR has reason
      to believe there is noncompliance, make
      alterations  or  repairs,  or  for  such  other
      purposes as may be reasonably necessary for the operation or proper maintenance
      of the LEASED PREMISES.

    

    SURRENDER
      OF LEASED PREMISES

    
      	
              1.  

            	
              That  the  LESSEE,  upon   termination  of  the  Contract,  shall

            

    

    peacefully,
      and
      without  necessity  of  demand,  deliver  upon
      to the LESSOR the LEASED PREMISES, vacant, and in the same condition, reasonable
      wear and tear excepted, in which the LESSEE received the LEASED PREMISES at
      the
      commencement of the Contract.

    

    
      	
              2.  

            	
              That
                should LESSEE delay surrender of premises upon termination of
                the

            

    

    Contract,  LESSEE  shall  be  responsible  to  the  LESSOR
      for all actual and verifiable damages incurred which LESSOR shall suffer by
      reason  thereof  and  will  indemnify
      LESSOR against any and all claims made resulting from said delay.

    

    
      	
              3.  

            	
              That  if  at  any   time  during   the  Contract,  the  LEASED
                PREMISES are

            

    

    abandoned  or  vacated  for  a  period
      of  more  than one month without written notice of such to
      the LESSOR, the LESSOR shall have the right to enter the same
      by  reasonable
      force  or  otherwise,  without  being
      liable to any prosecution therefore.  The LESSOR will have the right
      to lease the same and receive rent for its own account.

    

    
      	
              4.  

            	
              That
                LESSEE may remove its equipment and its appurtenances that
                are

            

    

    not
      attached to the LEASED PREMISES upon expiration of the Contract, provided it
      does not cause undue damage to the LEASED PREMISES, reasonable wear and tear
      excepted.

    

    

    TRADE
      FIXTURES, MACHINERY, AND EQUIPMENT

    
      	
              1.  

            	
              That
                the LESSOR agrees that the LESSEE shall have the right to
                introduce

            

    

    into
      the
      leased premises trade  fixtures, machinery,  equipment,
      and  furniture as may be necessary
      for  the  conduct  of its business as an office
      and/or showroom
      and    that   the   LESSEE   shall   have  the  right  to  locate   the  same   as  the
      LESSEE  may  deem fit.  However, no machinery and
      equipment shall be installed that may cause unreasonable inconvenience,
      discomfort, and objections from other tenants.

    

    STORAGE
      OF MATERIALS

    1.       That  the
      LESSEE nor the LESSOR shall  bring into, nor store in the LEASED
      PREMISESe any
      highly  inflammable,  explosive,  toxic,  dangerous,  or   prohibited  materials
      and
      substances   not   operate  or   install  therein   any   apparatus,  machinery,   or
      equipment  which   may  cause  obnoxious  odors,  tremors  &  vibrations,
      noise, pollution, or expose the LEASED PREMISES to fire or danger.

    

    TEMPORARY
      / PERMANENT REPAIRS

    
      	
              1.  

            	
              That
                all
                needed  major  repairs  of  the
                building and/or LEASED PREMISES relating to the strength, integrity,
                safety, and general appearance and use and operations by the LESSEE
                shall
                be made immediately within reasonable time and without delay by the
                LESSOR
                at its expense.

            

    

    

    
      	
              2.  

            	
              That
                LESSOR shall be liable to LESSEE, its officers, directors,
                employees

            

    

              and
      agents only for any  damage, death, personal injury or destruction
      as

              a
      result of such repairs which are directly attributable to the
      LESSOR.

    

    
      	
              3.  

            	
              LESSEE,
                its officers, directors, employees and agents shall take all necessary
                and
                prudent precautions to prevent the occurrence of any damage, death,
                personal injury or destruction in the normal course or its operations
                and
                during the construction or implementation of any repairs in the building
                and/or LEASED PREMISES.

            

    

    

    
      	
              4.  

            	
              That  the  LESSEE  shall  undertake  all  minor  repairs  and  maintenance

            

    

              related
      to normal wear and tear of the LEASED PREMISES at its

              reasonable
      expense.

    

    CARE
      OF LEASED PREMISES

    
      	
              1.  

            	
              That
                the LESSEE shall  maintain  the  LEASED
                PREMISES,  the windows, and floors included within the LEASED
                PREMISES in a clean and sanitary condition, free of any garbage or
                obnoxious odors, disturbing noise and/or other disturbances.  In
                the event the LESSEE  fails to discharge  this
                obligation thirty (30) days after its attention is called in writing
                by
                the LESSOR, the
                LESSOR  may  undertake  the  necessary
                cleaning of the leased premises at the reasonable expense of the
                LESSEE,
                if any.

            

    

    

    PAYMENT
      OF UTILITIES

    
      	
              1.  

            	
              That
                the LESSEE shall pay its obligations for utilities promptly as follows
                :

            

    

    POWER
      :       Directly to
      MERALCO;  LESSEE shall be provided a separate

                        meter
      for its power line.

    TELEPHONE:  Directly
      to PLDT / GLOBE

    WATER:     To
      the LESSOR based on Billings/Consumption per sub-meters installed. The LEASED
      PREMISES shall be provided a separate sub-meter for its water
      supply.

    

    ARREARS
      AND LITIGATION

    
      	
              1.  

            	
              That
                the LESSEE agrees to pay a two percent (2%) per month penalty
                on

            

    

    all  arrears  from  due  date
      until fully paid, if assessed by LESSOR. Provided, however, that the LESSOR
      reserves the right to immediately terminate this Contract upon failure by LESSEE
      to pay two
      successive  monthly  rentals  and  bills
      and notice to
      LESSEE,  or  comply  with  any  of  the  other
      material terms  & conditions of this Contract, without prejudice
      to the collection of said penalty.

    

    
      	
              2.  

            	
              That  the  LESSEE  agrees  to  have  this
                Contract governed by the laws of the Government of the Republic of
                the
                Philippines

            

    

    

    
      	
              3.  

            	
              That
                the LESSEE and LESSOR both mutually agree to have Pasig City as the
                venue
                of all court litigations.

            

    

    

    
      	
              4.  

            	
              That  in  case  of  failure  on  the  part
                of the LESSEE to pay rentals for a

            

    

    Period
      of
      two months, LESSEE hereby gives authority to LESSOR or to any of its
      authorized  representatives, thru this Contract, to take possession of
      said LEASED PREMISES, including improvements thereon, without compensation
      to
      the LESSEE
      and  without  necessity  of  resorting  to  any
      court action but in which case, the LESSEE  shall  be
      advised in writing of their failure to comply with the terms and conditions
      of  the Contract by way of reminder before the takeover and given 15
      days grace period for compliance of the Contract.

    

    Failure
      on the part of the LESSEE to update arrears and comply with the Contract within
      the grace period will authorize the LESSOR to:

    

    
      	
              A.  

            	
              Carefully
                Remove all removable improvements and personal
                belongings  and  deposit
                the  same  in  a secure
                warehouse  at  the  reasonable
                expense  of  LESSEE.  LESSEE  will  be
                permitted to be present during such removal.  However, should
                LESSEE fail to appear personally or to send a representative, LESSOR
                may
                proceed even in their absence. LESSOR will not be liable for any
                damage to
                items removed  and stored, unless caused by the intentional or
                wrongful action by LESSOR.

            

    

    

    
      	
              B.  

            	
              Lease
                the LEASED PREMISES to a new LESSEE upon
                takeover.

            

    

    

    PRE-TERMINATION
      OF CONTRACT

    1.     The
      LESSOR may cancel or
      terminate  this  Contract  for  reason
      of non-compliance of any of the material terms, conditions, and rules and
      regulations, by ninety (90) days notice, and in which event, LESSEE shall vacate
      the LEASED PREMISES.

    

    2.      If
      the LESSEE decides, for any cause and without fault of the LESSOR,
      to

    terminate
      this  Contract  prior to  the termination of the
      period agreed upon, the LESSEE shall be liable to the  LESSOR to pay
      the monthly rental for the remaining period of the Contract, unless otherwise
      agreed. If the  LEASED
      PREMISES  shall  have  been  occupied by
      another tenant, then the LESSEE shall be liable to pay only the period when
      the
      LEASED PREMISES remained idle or unoccupied.

    

    LIABILITY
      AND INSURANCE

    
      	
              1.  

            	
              That  the  LESSOR  shall  not  be  liable
                for any losses due to theft or any

            

    

    fortuitous
      or  unforeseen  events  or events that could be
      foreseen but cannot be avoided, arising in the LEASED PREMIES and /or the
      building, unless LESSOR was notified in advance and which is established as
      the
      responsibility and jurisdiction of the LESSOR.

    

    
      	
              2.  

            	
              That
                the LESSOR shall not be liable for any injury or damage to
                LESSEE,

            

    

    its
      employees, agents, or persons allowed access to the LEASED PREMISES, except
      where LESSOR is at fault, negligent, and previously notified of problems or
      concerns.

    

    
      	
              3.  

            	
              That
                the LESSEE will be permitted to undertake insurance coverage for
                its

            

    

    equipment,
      contents and machinery, if any, in  the  LEASED
      PREMISES.  However, LESSEE will be required to furnish LESSOR a copy
      of all  proposed insurance coverage within a week from the date of
      coverage, including renewals thereof.

    

    
      	
              4.  

            	
              That
                the LESSEE shall assume full responsibility for any damage caused
                to

            

    

    the   person  or  property  of   third  persons,  including  death,  while  remaining
      either  casually  or  on  business  in
      any part of the LEASED PREMISES, if  the damage be caused wholly or
      partly through the  fault  or negligence of LESSEE or its
      agents, and further binds itself to hold LESSOR free and harmless from any
      such
      claim or injury or damage.

    

    RULES
      AND REGULATIONS

    
      	
              1.  

            	
              That
                the LESSOR will adopt and promulgate rules and regulations on
                the

            

    

    use,
      care, and security of the building for the good of both the LESSOR and the
      LESSEE.

    

    
      	
              2.  

            	
              That
                said rules and regulations, shall form part of the Contract, be attached
                hereto and incorporated hereing and must be complied with by the
                LESSEE.

            

    

    

    
      	
              3.  

            	
              That  the  LESSOR
                will,  from  time to time, revise, update, and add
                rules

            

    

    and
      regulations and all such future  changes shall be considered as part
      of this Contract provided advance written notice given to LESSEE of such
      changes.

    

    SECURITY

    
      	
              1.  

            	
              That
                the  LESSOR  will  maintain a 24-hour
                security for the building.

            

    

    

    
      	
              2.  

            	
              That
                LESSEE may take additional precautionary / security measures such
                as
                installation of burglar alarms, smoke detectors, and private security
                guards    subject  to  written
                approval of the LESSOR.

            

    

    

    

    JANITORIAL
      SERVICE

    
      	
              1.  

            	
              That  the  LESSOR
                will  maintain a caretaker for the general cleanliness
                of

            

    

    the
      building, particularly the public and common areas.

    

    
      	
              2.  

            	
              That
                the LESSEE will be responsible for the care, maintenance, and
                overall

            

    

    cleaning
      of the LEASED PREMISES, unless otherwise agreed with LESSOR to use its general
      caretaker.

    

    

    OTHERS

    
      	
              1.  

            	
              That
                a mere tolerance on the part of the LESSOR shall not be
                construed

            

    

    as
      a  waiver of its rights to enforce compliance by the LESSEE under any
      and all of the terms and conditions of the Contract.

    

    
      	
              2.  

            	
              That  LESSOR  reserves  the  right  to  terminate  this  Contract  and  /  or

            

    

    demand
      actual damages from LESSEE in the event of any strike,
      picket,  or  the  like  arising  from  any   controversy  between  LESSEE  and   its
      employees or outsiders, and  causing  disturbance,
      disorderliness, or defacement
      and  destruction  of  the LESSOR's property, or
      otherwise carried on in a manner as to create
      a  nuisance  to  LESSOR  or  the  other  tenants
      or cause undue prejudice, harm, or injure their interest.

    

    SEPARABILITY

    1.       That
      the  parties  hereby agree that should any of the provisions
      herein stated be declared invalid or illegal by a competent court, the validity
      or legality of the remaining provisions shall not in any way be affected or
      impaired.

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
 

    This
      contract shall be binding on the parties’ heirs and
      successors-in-interest.

    

    

    IN
      WITNESS WHEREOF, the parties have hereto executed this instrument
      on 8th day of August, 2007.

     

     

    
      
        
          	 ROSHAN
                  COMMERCIAL CORP. 	 MBS
                  TEK CORPORATION	 	 
	 	 	 	 
	 Represented
                  by:   	 Represented
                  by:   	 	 
	 	 	 	 
	 /s/
                  Lachman T. Chatlani 	 /s/
                  Francis Castro	 	 
	 LACHMAN
                  T. CHATLANI	 MR.
                  FRANCIS CASTRO	 	 
	 President 	 Country
                  Manager	 	 
	 LESSOR 	 LESSEE	 	 
	 	 	 	 
	
                   WITNESSES

                	 	 
	 /s/
                  Mercedita L. Pedrenia 	 /s/
                  Emelda V. Perez	 	 
	 Mercedita
                  L. Pedrenia	 Emelda
                  V. Perez	 	 

        

         

      

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

    ACKNOWLEDGEMENTS

    

    REPUBLIC
      OF THE PHILIPPINES)

    CITY
      OF
      PASIG                        )

    METRO
      MANILA

    

    

          BEFORE
      ME, THIS DAY OF AUGUST 8, 2007 IN THE CITY OF PASIG, METRO MANILA,
      PHILIPPINES, PERSONALLY APPEARED.

     

    
       

      
        
          	 NAME 	 DATE	 PLACE
                  ISSUED	 
	 	 	 	 
	 LACHMAN
                  T. CHATLANI 	 March
                  09, 2007	 Pasig
                  City	 
	 FRANCIS
                  CASTRO	 July
                  06, 2007	 Pasig
                  City	 

        

         

      

    

     

    KNOWN
      to
      me to be same persons who executed the foregoing instrument, and they
      acknowledged to me that the same is their free act and deed.

    

    This
      instrument consisting of NINE (09) pages, including the page on which this
      acknowledgement is written, has been signed on the left margin of each and
      every
      page thereof by FRANCIS CASTRO and LACHMAN T. CHATLANI, their witnesses, and
      sealed with my notarial seal.

    

    IN
      WITNESS WHEREOF, I have hereunto set my hand, the day, month, year, and place
      above written.

    

    

                                                                            /s/
       NOTARY PUBLIC

    

    

    NOTARY
      REGISTRATION No.________

    Doc
      No.
296

    Page
      No.
61

    Book
      NO.
XXXIV

    Series
      of
      2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]