Common use of Financial Parameters Clause in Contracts

Financial Parameters. 8.1 Annual O&M Fee as quoted by the Operator for the first year of operation shall undergo escalation/ de-escalation as per Article 8.3 8.2 The fee as calculated from Article 8.1 shall be the Annual O&M Fee (the "Annual O&M Fee") for first year of operation. 1. Annual O&M Fee for first year of operation (Due from Handover Date) = Annual O&M Fee as quoted by the bidder in the financial proposal and has undergone revision as per Article 8.1 for 45 MT capacity plant 2. Annual O&M Fee for subsequent years (from second year of operation to last year of operation) = a. The annual escalation factor for increase in Annual O&M Fee from second year of Operation is ✓ 5% per annum Or ✓ Increase in WPI factor to reflect the increase between the WPI for last Financial Year (ending on 31st March) and the WPI for the previous financial year (ending on 31st March) (whichever is higher) The revised Annual O&M Fee after including annual escalation factor would be applicable from second year of operation and shall undergo revision every year as defined in this Article b. The Annual O&M fee to be paid to the Authority as calculated in Article 8.3, would increase basis increase in intake of raw material i. The Annual O&M Fee as calculated in Article 8.3 would undergo increase based upon actual intake of raw material as following: ✓ For every additional 675 MT intake as raw material (pulp/seed) Per Accounting Year, over and above 13500 MT as raw material Per Accounting Year), the Annual O&M Fee shall be increased by 4% (four percent). ✓ For every additional 675 as raw material (pulp/seed) Per Accounting Year production of all products over and above 15000 MT as raw material Per Accounting Year, the Annual O&M Fee shall be increased by 3% (four percent). c. The Annual O&M Fee as applicable for respective year of operation would be paid in four instalments on a quarterly basis. ✓ Quarterly O&M Fee to be paid every quarter would be = (Annual O&M Fee as applicable for respective financial year/ 4) 8.2.1 In consideration of the rights, privileges and interests granted by the Authority to the Operator in terms of this Agreement, the Operator shall pay the Annual O&M Fee to the Authority, commencing from Handover Date as follows: ✓ Annual O&M Fee shall be due and payable, in four installments on quarterly basis, latest by the seventh day of the succeeding month, starting from Handover Date. 8.2.2 The Operator shall not be granted any waiver in the O&M Fee during any circumstances including change in the taxes. 8.2.3 For the avoidance of doubt, GST or any other tax applicable shall be borne by the Operator over and above the Annual O&M Fee as per clause 8.1. 8.2.4 In the event of delay up to 7 days from the due date in the payment of the Annual O&M Fee, the Operator shall be liable to pay to the Authority, interest on the due amount at the rate of SBI PLR plus 2 % (two percent) per annum, for the period from the due date until the date of actual payment. 8.2.5 In consideration of the Grant, the Operator hereby agrees to make payment of O&M Fee for the Initial Term and Extended Term (if any) accordance with clause 8.1 & 8.2 8.2.6 The operator shall be liable to pay damages for any delay in payments of Annual O&M fee to the Authority calculated at the rate of SBI PLR + 2 % per annum for the period from due date until the date of actual payment. 8.3 Change in Annual O&M Fee for first year of Operation due to change in actual Project cost Illustration For escalated O&M Fee S. No Estimated Project Cost (As per RFQ) Actual Project Cost (Spent by Authority) Percentage Increase in Estimated Project Cost Annual O&M Fee (Quoted by successful bidder) Escalated Annual O&M Fee 3 1 Cr 1.20 Cr More than 10% and up to 25% 10 Lakhs 12 Lakhs =(10x(1.2/1)) 4 1 Cr 1.30 Cr More than 25% 10 Lakhs 12.5 Lakhs =(10x(1.25/1)) (Capped at 25%) 1 1 Cr 1 Cr NIL 10 Lakhs 10 Lakhs 2 1 Cr 0.95 Cr Up to 10% 10 Lakhs 10 Lakhs 3 1 Cr 0.90 Cr More than 10% and up to 25% 10 Lakhs 9 Lakhs =(10x(0.9/1)) 4 1 Cr 0.70 Cr More than 25% 10 Lakhs 7.5 Lakhs =(10x(0.75/1)) (Capped at 25%)

Financial Parameters. 8.1 Annual O&M Fee as quoted by the Operator for the first year of operation shall undergo escalation/ de-escalation as per Article 8.3 8.2 The fee as calculated from Article 8.1 shall be the Annual O&M Fee (the "Annual O&M Fee") for first year of operation. 1. Annual O&M Fee for first year of operation (Due from Handover Date) = Annual O&M Fee ▇▇▇ as quoted by the bidder in the financial proposal and has undergone revision as per Article 8.1 for 45 MT 6 MTPD capacity plant 2. Annual O&M Fee for subsequent years (from second year of operation to last year of operation) = a. The annual escalation factor for increase in Annual O&M Fee from second year of Operation is ✓ 5% per annum Or ✓ Increase in WPI factor to reflect the increase between the WPI for last Financial Year (ending on 31st March) and the WPI for the previous financial year (ending on 31st March) (whichever is higher) The revised Annual O&M Fee after including annual escalation factor would be applicable from second year of operation and shall undergo revision every year as defined in this Article b. The Annual O&M fee to be paid to the Authority as calculated in Article 8.3, would increase basis increase in intake of raw material i. The Annual O&M Fee as calculated in Article 8.3 would undergo increase based upon actual intake of raw material as following: ✓ For every additional 675 90 MT intake as raw material (pulp/seedMahua) Per Accounting Year, over and above 13500 1800 MT as raw material Per Accounting Year), the Annual O&M Fee shall be increased by 4% (four percent). ✓ For every additional 675 90 MT as raw material (pulp/seedMahua) Per Accounting Year production of all products over and above 15000 1980 MT as raw material Per Accounting Year, the Annual O&M Fee shall be increased by 3% (four percent). c. The Annual O&M Fee as applicable for respective year of operation would be paid in four instalments on a quarterly basis. ✓ Quarterly O&M Fee to be paid every quarter would be = (Annual O&M Fee as applicable for respective financial year/ 4) 8.2.1 In consideration of the rights, privileges and interests granted by the Authority to the Operator in terms of this Agreement, the Operator shall pay the Annual O&M Fee to the Authority, commencing from Handover Date as follows: ✓ Annual O&M Fee shall be due and payable, in four installments on quarterly basis, latest by the seventh day of the succeeding month, starting from Handover Date. For the payment of the above Annual O&M Fee the Financial Year (FY) shall be the English Calendar i.e. 1st April to 31st March. Accordingly, the quarters shall be April- June, July-September, October-December & January-March. In case the Handover Date happens to be a day in between one of the Four quarters then the “Annual O&M Fee” for the First quarter shall be computer on “pro-rata” basis. The second quarter shall obviously commence as per the English Calendar (e.g. If the Handover date is 13th August of a particular Financial Year, then the First quarter shall be treated as that of remaining days of August and September and the quarterly payment of Annual O&M Fee shall be computed for remaining days of August and September instead of July-September). The First Financial Year may be/ may not be of full 12 months. 8.2.2 The Operator shall not be granted any waiver in the O&M Fee during any circumstances including change in the taxes. 8.2.3 For the avoidance of doubt, GST or any other tax applicable shall be borne by the Operator over and above the Annual O&M Fee as per clause 8.1. 8.2.4 In the event of delay up to 7 days from the due date in the payment of the Annual O&M Fee, the Operator shall be liable to pay to the Authority, interest on the due amount at the rate of SBI PLR plus 2 % (two percent) per annum, for the period from the due date until the date of actual payment. 8.2.5 In consideration of the Grant, the Operator hereby agrees to make payment of O&M Fee for the Initial Term and Extended Term (if any) accordance with clause 8.1 & 8.2 8.2.6 The operator shall be liable to pay damages for any delay in payments of Annual O&M fee to the Authority calculated at the rate of SBI PLR + 2 % per annum for the period from due date until the date of actual payment. 8.3 Change in Annual O&M Fee for first year of Operation due to change in actual Project cost Illustration For escalated O&M Fee S. No Estimated Project Cost (As per RFQ) Actual Project Cost (Spent by Authority) Percentage Increase in Estimated Project Cost Annual O&M Fee (Quoted by successful bidder) Escalated Annual O&M Fee 3 1 Cr 1.20 Cr More than 10% and up to 25% 10 Lakhs 12 Lakhs =(10x(1.2/1)) 4 1 Cr 1.30 Cr More than 25% 10 Lakhs 12.5 Lakhs =(10x(1.25/1)) (Capped at 25%) 1 1 Cr 1 Cr NIL 10 Lakhs 10 Lakhs 2 1 Cr 0.95 Cr Up to 10% 10 Lakhs 10 Lakhs 3 1 Cr 0.90 Cr More than 10% and up to 25% 10 Lakhs 9 Lakhs =(10x(0.9/1)) 4 1 Cr 0.70 Cr More than 25% 10 Lakhs 7.5 Lakhs =(10x(0.75/1)) (Capped at 25%)

Financial Parameters. 8.1 Annual O&M Fee as quoted by the Operator for the first year of operation shall undergo escalation/ de-escalation as per Article 8.3 8.2 The fee as calculated from Article 8.1 shall be the Annual O&M Fee (the "Annual O&M Fee") for first year of operation. 1. Annual O&M Fee for first year of operation (Due from Handover Date) = Annual O&M Fee as quoted by the bidder in the financial proposal and has undergone revision as per Article 8.1 for 45 MT capacity plant 2. Annual O&M Fee for subsequent years (from second year of operation to last year of operation) = a. The annual escalation factor for increase in Annual O&M Fee from second year of Operation is ✓  5% per annum Or ✓  Increase in WPI factor to reflect the increase between the WPI for last Financial Year (ending on 31st March) and the WPI for the previous financial year (ending on 31st March) (whichever is higher) The revised Annual O&M Fee after including annual escalation factor would be applicable from second year of operation and shall undergo revision every year as defined in this Article b. Annual Gross Revenue herein includes all revenue receipts from sale of all products manufactured at the Project site or from sale of any product produced or moved out from the boundary of the Project Site. The Operator shall ensure that revenue from the sale of all products are credited into Escrow Account of the Operator and not in any other bank account. c. The Annual O&M fee to be paid to the Authority as calculated in Article 8.3, would increase basis increase in intake of raw material i. The Annual O&M Fee as calculated in Article 8.3 would undergo increase based upon actual intake of raw material as following: ✓  For every additional 675 MT intake as raw material (pulp/seed) Per Accounting Year, over and above 13500 MT as raw material Per Accounting Year), the Annual O&M Fee shall be increased by 4% (four percent). ✓  For every additional 675 as raw material (pulp/seed) Per Accounting Year production of all products over and above 15000 MT as raw material Per Accounting Year, the Annual O&M Fee shall be increased by 3% (four percent). c. d. The Annual O&M Fee as applicable for respective year of operation would be paid in four instalments on a quarterly basis. ✓  Quarterly O&M Fee to be paid every quarter would be = (Annual O&M Fee as applicable for respective financial year/ 4) 8.2.1 In consideration of the rights, privileges and interests granted by the Authority to the Operator in terms of this Agreement, the Operator shall pay the Annual O&M Fee to the Authority, commencing from Handover Date as follows: ✓  Annual O&M Fee shall be due and payable, in four installments on quarterly basis, latest by the seventh day of the succeeding monthmonth through the Escrow mechanism set forth in this Agreement, starting from Handover Date. 8.2.2 The Operator shall not be granted any waiver in the O&M Fee during any circumstances including change in the taxes. 8.2.3 For the avoidance of doubt, GST or any other tax applicable shall be borne by the Operator over and above the Annual O&M Fee as per clause 8.1. 8.2.4 In the event of delay up to 7 days from the due date in the payment of the Annual O&M Fee, the Operator shall be liable to pay to the Authority, interest on the due amount at the rate of SBI PLR plus 2 % (two percent) per annum, for the period from the due date until the date of actual payment. 8.2.5 In consideration of the Grant, the Operator hereby agrees to make payment of O&M Fee for the Initial Term and Extended Term (if any) accordance with clause 8.1 & 8.2 8.2.6 The operator shall be liable to pay damages for any delay in payments of Annual O&M fee to the Authority calculated at the rate of SBI PLR + 2 % per annum for the period from due date until the date of actual payment. 8.3 Change in Annual O&M Fee for first year of Operation due to change in actual Project cost Illustration For escalated O&M Fee S. No Estimated Project Cost (As per RFQ) Actual Project Cost (Spent by Authority) Percentage Increase in Estimated Project Cost Annual O&M Fee (Quoted by successful bidder) Escalated Annual O&M Fee 3 1 Cr 1.20 Cr More than 10% and up to 25% 10 Lakhs 12 Lakhs =(10x(1.2/1)) 4 1 Cr 1.30 Cr More than 25% 10 Lakhs 12.5 Lakhs =(10x(1.25/1)) (Capped at 25%) ) 1 1 Cr 1 Cr NIL 10 Lakhs 10 Lakhs 2 1 Cr 0.95 Cr Up to 10% 10 Lakhs 10 Lakhs 3 1 Cr 0.90 Cr More than 10% and up to 25% 10 Lakhs 9 Lakhs =(10x(0.9/1)) 4 1 Cr 0.70 Cr More than 25% 10 Lakhs 7.5 Lakhs =(10x(0.75/1)) (Capped at 25%)

Financial Parameters. 8.1 Annual O&M Fee as quoted by the Operator for the first year of operation shall undergo escalation/ de-escalation as per Article 8.3 8.2 The fee as calculated from Article 8.1 shall be the Annual O&M Fee (the "Annual O&M Fee") for first year of operation. 1. Annual O&M Fee for first year of operation (Due from Handover Date) = Annual O&M Fee as quoted by the bidder in the financial proposal and has undergone revision as per Article 8.1 for 45 MT capacity plant 2. Annual O&M Fee for subsequent years (from second year of operation to last year of operation) = a. The annual escalation factor for increase in Annual O&M Fee from second year of Operation is ✓  5% per annum Or ✓  Increase in WPI factor to reflect the increase between the WPI for last Financial Year (ending on 31st March) and the WPI for the previous financial year (ending on 31st March) (whichever is higher) The revised Annual O&M Fee after including annual escalation factor would be applicable from second year of operation and shall undergo revision every year as defined in this Article b. The Annual O&M fee to be paid to the Authority as calculated in Article 8.3, would increase basis increase in intake of raw material i. The Annual O&M Fee as calculated in Article 8.3 would undergo increase based upon actual intake of raw material as following: ✓  For every additional 675 MT intake as raw material (pulp/seed) Per Accounting Year, over and above 13500 MT as raw material Per Accounting Year), the Annual O&M Fee shall be increased by 4% (four percent). ✓  For every additional 675 as raw material (pulp/seed) Per Accounting Year production of all products over and above 15000 MT as raw material Per Accounting Year, the Annual O&M Fee shall be increased by 3% (four percent). c. The Annual O&M Fee as applicable for respective year of operation would be paid in four instalments on a quarterly basis. ✓  Quarterly O&M Fee to be paid every quarter would be = (Annual O&M Fee as applicable for respective financial year/ 4) 8.2.1 In consideration of the rights, privileges and interests granted by the Authority to the Operator in terms of this Agreement, the Operator shall pay the Annual O&M Fee to the Authority, commencing from Handover Date as follows: ✓  Annual O&M Fee shall be due and payable, in four installments on quarterly basis, latest by the seventh day of the succeeding month, starting from Handover Date. 8.2.2 The Operator shall not be granted any waiver in the O&M Fee during any circumstances including change in the taxes. 8.2.3 For the avoidance of doubt, GST or any other tax applicable shall be borne by the Operator over and above the Annual O&M Fee as per clause 8.1. 8.2.4 In the event of delay up to 7 days from the due date in the payment of the Annual O&M Fee, the Operator shall be liable to pay to the Authority, interest on the due amount at the rate of SBI PLR plus 2 % (two percent) per annum, for the period from the due date until the date of actual payment. 8.2.5 In consideration of the Grant, the Operator hereby agrees to make payment of O&M Fee for the Initial Term and Extended Term (if any) accordance with clause 8.1 & 8.2 8.2.6 The operator shall be liable to pay damages for any delay in payments of Annual O&M fee to the Authority calculated at the rate of SBI PLR + 2 % per annum for the period from due date until the date of actual payment. 8.3 Change in Annual O&M Fee for first year of Operation due to change in actual Project cost Illustration For escalated O&M Fee S. No Estimated Project Cost (As per RFQ) Actual Project Cost (Spent by Authority) Percentage Increase in Estimated Project Cost Annual O&M Fee (Quoted by successful bidder) Escalated Annual O&M Fee 2 1 Cr 1.05 Cr Up to 10% 10 Lakhs 10 Lakhs 3 1 Cr 1.20 Cr More than 10% and up to 25% 10 Lakhs 12 Lakhs =(10x(1.2/1)) 4 1 Cr 1.30 Cr More than 25% 10 Lakhs 12.5 Lakhs =(10x(1.25/1)) (Capped at 25%) 1 1 Cr 1 Cr NIL 10 Lakhs 10 Lakhs 2 1 Cr 0.95 Cr Up to 10% 10 Lakhs 10 Lakhs 3 1 Cr 0.90 Cr More than 10% and up to 25% 10 Lakhs 9 Lakhs =(10x(0.9/1)) 4 1 Cr 0.70 Cr More than 25% 10 Lakhs 7.5 Lakhs =(10x(0.75/1)) (Capped at 25%)