Common use of Interest Free Security Deposit / Performance Security Clause in Contracts

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: The Licensee shall pay Interest Free Security Deposit / Performance Security to DMRC in advance equivalent to the amount of fixed Annual (12 months) License Fee for the stations handed over. The amount will be paid in as per clause 6.2 of the DLA. Minimum 25% of this amount is to be paid in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest free Security Deposit up to Rs.10.00 Lakhs will be accepted in form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid in the following form. Escalated amount of Interest Free Security Deposit shall be deposited in DD/PO or E-mode only. 7.1.1 Bank Draft/PO in favour of DMRC Ltd., payable at New Delhi and issued from a Scheduled Commercial Bank based in India. 7.1.2 Irrevocable Bank Guarantee in the prescribed format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or other Scheduled Commercial Banks, acceptable to DMRC, from/payable at branches located in Delhi/New Delhi. The Bank Guarantee shall be valid for at least three years. The Bank Guarantee shall be extended and renewed every three years well before expiry of earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- cashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation to the licensee. The scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system) platform. A separate advice of the BG shall invariably be sent by the issuing bank to the designated bank of DMRC, through SFMS and only after this the BG shall become operative and acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the details of DMRC’s designated bank and request the BG issuing bank to send the advice of the BG through SFMS to DMRC’s Bank. DMRC’s bank at present, for confirmation/sending advice of the BG of bank guarantee is detailed as under: 7.1.3 In case of a joint venture, the Interest Free Security Deposit/performance security is to be submitted in the name of the JV only. However, splitting of the performance security (while ensuring the performance security is in the name of JV) and its submission by different members of the JV for an amount proportionate to their participation ratio in the JV or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. without consideration of any interest, or after exit/surrender from the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interest. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLA.

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: a) The Licensee selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit / Deposit/Performance Security to DMRC in advance equivalent to the amount of fixed Annual half yearly (12 6 months) License Fee as quoted by the bidder for the stations handed overtotal number of trains as mentioned in Annexure-1 for Line-8. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The amount will be paid in as per clause 6.2 of the DLA. Minimum selected Bidder is required to pay & deposit minimum 25% of this amount is to be paid the Interest Free Security Deposit/Performance Security in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest free Security Deposit up to Rs.10.00 Lakhs will be accepted in the form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the following form. Escalated amount remaining or 75% of Interest Free Security Deposit shall Deposit/Performance Security can be deposited paid &submitted in DD/PO or E-mode only. 7.1.1 the form of Bank DraftGuarantee (BG)/DD/PO in favour of DMRC Ltd.Ltd. Interest Free Security Deposit/Performance Security upto Rs.10 lakh shall be payable in the form of DD/PO only. c) The interest free Security Deposit/ Performance Security shall be accepted in the following form: Bank Draft/PO in favor of DMRC Ltd, payable at New Delhi and & issued from a Scheduled Commercial Bank based in India. 7.1.2 , or Irrevocable Bank Guarantee in the prescribed format (Annexure-1) format, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BanksBank, acceptable to DMRC, from/payable at branches located in Delhi/Delhi/ New Delhi. The Bank Guarantee shall be valid for at least three years. The Bank Guarantee shall be extended and renewed every three years years, on rolling basis well before expiry of earlier previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- cashed encashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation notice to the licensee. The scheduled commercial Bank BG issuing the above bank guarantee must be on the SFMS (structured financial messaging systemsystem (SFMS) platform. A separate platform and an advice of the BG shall Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC, DMRC through SFMS and only after this the BG shall become before it becomes operative and & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the from DMRC details of DMRC’s its designated bank and request & to advise these to the BG issuing bank Bank & request them to send the advice of the BG through the SFMS to DMRC’s Bankplatform. DMRC’s bank designated bank, at present, present for confirmation/sending advice of the BG confirmation of bank guarantee is detailed as under: 7.1.3 d) In case of a joint ventureJV/ Consortium, the Interest Free Security Deposit/Deposit/ performance security is to be submitted in the name of the JV onlyits JV/Consortium. However, splitting of the Interest Free Security Deposit/performance security (while ensuring the Interest Free Security Deposit/ performance security is in the name of JV/Consortium) and its submission by different members of the JV JV/ Consortium for an amount proportionate to their participation ratio in the JV percentage stake or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. without consideration of any interest, or after exit/surrender from the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interest. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLA.

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: a) The Licensee selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit / Deposit/Performance Security to DMRC in advance equivalent to the amount of fixed Annual half yearly (12 6 months) License Fee as quoted by the bidder for the stations handed overtotal number of trains as mentioned in Annexure-1 for Line-8. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The amount will be paid in as per clause 6.2 selected Bidder is required to pay & deposit minimum 35% of the DLA. Minimum 25% of this amount is to be paid Interest Free Security Deposit/Performance Security in the form of DD/PO/RTGS/NEFT only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 65% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/FDR/DD/PO/RTGS/NEFT in favour of DMRC Ltd. Interest Free Security Deposit/Performance Security upto Rs.10 lakh shall be payable in the form of DD/PO/RTGS/NEFT only. c) The interest free Security Deposit/ Performance Security shall be accepted in the following form: Bank Draft/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest free Security Deposit up to Rs.10.00 Lakhs will be accepted in form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid in the following form. Escalated amount of Interest Free Security Deposit shall be deposited in DD/PO or E-mode only. 7.1.1 Bank Draft/PO in favour of DMRC Ltd.Ltd, payable at New Delhi and & issued from a Scheduled Commercial Bank based in India, FDR’s shall be accepted subject to the following conditions:- 1. FDR should be in joint name with licensee starting with DMRC. 7.1.2 2. The FDR should be duly discharged in favour of DMRC by the authorized signatory of the licensee on revenue stamp. 3. An additional certification is required from the bank stating that ‘the Bank, as primary obligator shall, without demur, reservation, contest, protest, recourse and/or without reference to Licensee, pay to DMRC on the same working day of receipt of a written demand from DMRC. For the purpose of this clause, any letter making demand on the Bank by DMRC dispatched by Registered Post with Ack. Due or by any Electronic means addressed to the above mentioned address of the Bank shall be deemed to be claim/demand in writing referred to above irrespective of the fact as to whether and when the said letter reached the Bank, as also any letter containing the said demand or claim is lodged with the Bank personally. 4. The payment should be made without any reference to the licensee or any other person. Irrevocable Bank Guarantee in the prescribed format (Annexure-1) format, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BanksBank, acceptable to DMRC, from/payable at branches located in Delhi/Delhi/ New Delhi. The Bank Guarantee shall be valid for at least three years. The Bank Guarantee shall be extended and renewed every three years years, on rolling basis well before expiry of earlier previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- cashed encashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation notice to the licensee. The scheduled commercial Bank BG issuing the above bank guarantee must be on the SFMS (structured financial messaging systemsystem (SFMS) platform. A separate platform and an advice of the BG shall Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC, DMRC through SFMS and only after this the BG shall become before it becomes operative and & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the from DMRC details of DMRC’s its designated bank and request & to advise these to the BG issuing bank Bank & request them to send the advice of the BG through the SFMS to DMRC’s Bankplatform. DMRC’s bank designated bank, at present, present for confirmation/sending advice of the BG confirmation of bank guarantee is detailed as under: 7.1.3 d) In case of a joint ventureJV/ Consortium, the Interest Free Security Deposit/Deposit/ performance security is to be submitted in the name of the JV onlyits JV/Consortium. However, splitting of the Interest Free Security Deposit/performance security (while ensuring the Interest Free Security Deposit/ performance security is in the name of JV/Consortium) and its submission by different members of the JV JV/ Consortium for an amount proportionate to their participation ratio in the JV percentage stake or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. without consideration of any interest, or after exit/surrender from the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interest. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLA.

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: a) The Licensee selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit / Deposit/Performance Security to DMRC in advance equivalent to the amount of fixed Annual half yearly (12 6 months) License Fee as quoted by the bidder for the stations handed overtotal number of trains as mentioned in Annexure-1 for Line-8. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The amount will be paid in as per clause 6.2 of the DLA. Minimum selected Bidder is required to pay & deposit minimum 25% of this amount is to be paid the Interest Free Security Deposit/Performance Security in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest free Security Deposit up to Rs.10.00 Lakhs will be accepted in the form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the following form. Escalated amount remaining or 75% of Interest Free Security Deposit shall Deposit/Performance Security can be deposited paid &submitted in the form of Bank Guarantee (BG)/FDR/DD/PO or E-mode only. 7.1.1 Bank Draft/PO in favour of DMRC Ltd.Ltd. Interest Free Security Deposit/Performance Security upto Rs.10 lakh shall be payable in the form of DD/PO only. c) The interest free Security Deposit/ Performance Security shall be accepted in the following form: Bank Draft/PO in favor of DMRC Ltd, payable at New Delhi and & issued from a Scheduled Commercial Bank based in India, FDR‟s shall be accepted subject to the following conditions:- 1. FDR should be in joint name with licensee starting with DMRC. 7.1.2 2. The FDR should be duly discharged in favour of DMRC by the authorized signatory of the licensee on revenue stamp. 3. An additional certification is required from the bank stating that „the Bank, as primary obligator shall, without demur, reservation, contest, protest, recourse and/or without reference to Licensee, pay to DMRC on the same working day of receipt of a written demand from DMRC. For the purpose of this clause, any letter making demand on the Bank by DMRC dispatched by Registered Post with Ack. Due or by any Electronic means addressed to the above mentioned address of the Bank shall be deemed to be claim/demand in writing referred to above irrespective of the fact as to whether and when the said letter reached the Bank, as also any letter containing the said demand or claim is lodged with the Bank personally. 4. The payment should be made without any reference to the licensee or any other person. Irrevocable Bank Guarantee in the prescribed format (Annexure-1) format, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BanksBank, acceptable to DMRC, from/payable at branches located in Delhi/Delhi/ New Delhi. The Bank Guarantee shall be valid for at least three years. The Bank Guarantee shall be extended and renewed every three years years, on rolling basis well before expiry of earlier previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- cashed encashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation notice to the licensee. The scheduled commercial Bank BG issuing the above bank guarantee must be on the SFMS (structured financial messaging systemsystem (SFMS) platform. A separate platform and an advice of the BG shall Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC, DMRC through SFMS and only after this the BG shall become before it becomes operative and & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the from DMRC details of DMRC’s its designated bank and request & to advise these to the BG issuing bank Bank & request them to send the advice of the BG through the SFMS to DMRC’s Bankplatform. DMRC’s bank DMRC‟s designated bank, at present, present for confirmation/sending advice of the BG confirmation of bank guarantee is detailed as under: 7.1.3 d) In case of a joint ventureJV/ Consortium, the Interest Free Security Deposit/Deposit/ performance security is to be submitted in the name of the JV onlyits JV/Consortium. However, splitting of the Interest Free Security Deposit/performance security (while ensuring the Interest Free Security Deposit/ performance security is in the name of JV/Consortium) and its submission by different members of the JV JV/ Consortium for an amount proportionate to their participation ratio in the JV percentage stake or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. without consideration of any interest, or after exit/surrender from the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interest. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLA.

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: The Licensee shall pay Interest Free Security Deposit / Performance Security to DMRC in advance equivalent to the amount of fixed Annual (12 months) the first yearAnnual License Fee for the stations station handed over. The amount will be paid in as per clause 6.2 of the DLA. Minimum 25% of this amount is to be paid in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest free Security Deposit up to Rs.10.00 Lakhs will be accepted in form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid in the following form. Escalated amount of Interest Free Security Deposit shall be deposited in DD/PO or E-mode only. 7.1.1 Bank Draft/PO in favour of DMRC Ltd., payable at New Delhi and issued from a Scheduled Commercial Bank based in India. 7.1.2 Irrevocable Bank Guarantee in the prescribed format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or other Scheduled Commercial Banks, acceptable to DMRC, from/payable at branches located in Delhi/New Delhi. The Bank Guarantee shall be valid for at least three years. The Bank Guarantee shall be extended and renewed every three years well before expiry of earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- en-cashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation to the licensee. The scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system) platform. A separate advice of the BG shall invariably be sent by the issuing bank to the designated bank of DMRC, through SFMS and only after this the BG shall become operative and acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the details of DMRC’s designated bank and request the BG issuing bank to send the advice of the BG through SFMS to DMRC’s Bank. DMRC’s bank at present, for confirmation/sending advice of the BG of bank guarantee is detailed as under: 7.1.3 In case of a joint venture, the Interest Free Security Deposit/performance security is to be submitted in the name of the JV only. However, splitting of the performance security (while ensuring the performance security is in the name of JV) and its submission by different members of the JV for an amount proportionate to their participation ratio in the JV or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one three year 520% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. without consideration of any interest, or after exit/surrender from the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interest. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLADraft License Agreement. 7.5 License may also submit the IFSD though FDR. (Annexure-1(A)).

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: The Licensee shall pay Interest Free Security Deposit / Performance Security to DMRC in advance equivalent to the amount of fixed Annual (12 months) License Fee for the stations station handed over. The amount will be paid in as per clause 6.2 of the DLA. Minimum 25% of this amount is to be paid in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/DD/PO in favour of DMRC Ltd and payable in New Delhi. Interest interest free Security Deposit up to Rs.10.00 Lakhs will / Performance Security shall be accepted in form of DD/PO only in favour of DMRC Ltd. Interest free security deposit/performance Security is to be paid in the following form. Escalated amount of Interest Free Security Deposit shall be deposited in DD/PO or E-mode only.: 7.1.1 Bank Draft/PO Draft in favour of DMRC Ltd.DMRC, payable at New Delhi and issued from a Scheduled Commercial Bank based in India., or 7.1.2 Fixed Deposit Receipt of a Scheduled Commercial Bank / Post Office based in India duly pledged in favour of DMRC, or 7.1.3 Irrevocable Bank Guarantee in the prescribed format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or other Scheduled Commercial Banks, acceptable to DMRC, from/payable at with branches located in Delhi/New Delhi. The Bank Guarantee shall be valid for at least three two years. The Bank Guarantee shall be extended valid for at least two years. The Bank Guarantee shall be reimbursed and renewed every three two years well before expiry of earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- en-cashed by DMRC without any prior intimation to the licenseeintimation. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it furtherit, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation to the licensee. The scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system) platform. A separate advice of the BG shall invariably be sent by the issuing bank to the designated bank of DMRC, through SFMS and only after this the BG shall become operative and acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the details of DMRC’s designated bank and request the BG issuing bank to send the advice of the BG through SFMS to DMRC’s Bank. DMRC’s bank at present, for confirmation/sending advice of the BG of bank guarantee is detailed as under:. 7.1.3 7.1.4 In case of a joint venture, the Interest Free Security Deposit/performance security is to be submitted in the name of the JV onlyJV. However, splitting of the performance security (while ensuring the performance security is in the name of JV) and its submission by different members of the JV for an amount proportionate to their participation ratio in the JV or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 5 years from commencement date of License Agreement and after adjusting any dues payable to DMRCdues, reconciliation etc. etc without any consideration of any interest, or after exit/surrender from the License agreement after completion termination of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interestagreement. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Deposit / Performance Security to the extent the amount is debited within 15 30 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLADefault.

Interest Free Security Deposit / Performance Security. 7.1 Interest Free Security Deposit / Performance Security: The Licensee shall pay Interest Free Security Deposit / Performance Security to DMRC in advance equivalent to the amount of fixed Annual (12 months) License Fee for the stations station handed over. The amount will be paid in two installments as per clause 6.2 of the DLA. Minimum 25% of this amount is to would be paid in form of DD/PO in favor of DMRC Ltd. and payable in New Delhi, and remaining or 75% in form of BG/FDR/DD/PO in favour of DMRC Ltd and payable in New DelhiPO. Interest free Security Deposit up to Rs.10.00 Lakhs upto Rs 10.00 lakhs will be accepted in form of DD/PO only in favour of DMRC Ltd. Interest only. The interest free security deposit/performance Security is to Deposit/ Performance Security shall be paid accepted in the following form. Escalated amount of Interest Free Security Deposit shall be deposited in DD/PO or E-mode only.: 7.1.1 Bank Draft/PO Draft in favour of DMRC Ltd.DMRC, payable at New Delhi and issued from a Scheduled Commercial Bank based in India., or 7.1.2 Fixed Deposit Receipt of a Scheduled Commercial Bank / based in India duly pledged in favour of DMRC styled as DMRC Ltd (a/c name of licensee), or 7.1.3 Irrevocable Bank Guarantee in the prescribed format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or other Scheduled Commercial Banks, acceptable to DMRC, fromwith/payable at from branches located in Delhi/New Delhi. The Bank Guarantee shall be valid for at least three two years. The Bank Guarantee shall be extended and renewed every three two years well before expiry of earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and en- en-cashed by DMRC without any prior intimation to the licensee. For last year of license period the Bank Guarantee shall be extended and renewed for residual period of contract plus six months and shall renew it further, if required, till the final settlement of all accounts failing which the Bank Guarantee of the Licensee shall be invoked and en-cashed by DMRC without any intimation to the licensee. The scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system) platform. A separate advice of the BG shall invariably be sent by the issuing bank to the designated bank of DMRC, through SFMS and only after this the BG shall become operative and acceptable to DMRC. It is therefore in the own interest of the licensee to obtain the details of DMRC’s designated bank and request the BG issuing bank to send the advice of the BG through SFMS to DMRC’s Bank. DMRC’s bank at present, for confirmation/sending advice of the BG of bank guarantee is detailed as under:. 7.1.3 7.1.4 In case of a joint venture, the Interest Free Security Deposit/performance security is to be submitted in the name of the JV onlyJV. However, splitting of the performance security (while ensuring the performance security is in the name of JV) and its submission by different members of the JV for an amount proportionate to their participation ratio in the JV or otherwise is also acceptable. 7.1.4 Interest free security deposit/performance Security shall be escalated after completion of every one year 5% on compounding basis and this escalated amount shall be deposited in form of DD/PO/e-Mode. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 10 years from commencement date of License Agreement and after adjusting any dues payable to DMRC, reconciliation etc. etc without any consideration of any interest, or after exit/surrender from completion of the License agreement after completion of Lock in period of two years and on receipt of 180 days prior notice, as per the provisions contained and after adjustment of any dues payable to DMRC, without consideration of any interestyears. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security at any stage of the agreement i.e. currency/ completion/termination/surrender etc. for: - a) Any penalty imposed by DMRC or/& adjustment for losses/damages suffered by DMRC for violation of any terms and conditions of agreement committed by the Licensee. b) Any amount which DMRC becomes liable to the Government/Third party due to any default of the Licensee or any of his director/ employees/ representatives/ servant/ agent, etc. c) Any payment/ fine made under the order/judgment of any court/consumer forum or law enforcing agency or any person duly empowered in his behalf. d) Any outstanding payment/ claims of DMRC remained due after completion of relevant actions as per agreement. 7.4 Once the amount under above Clause is debited, the Licensee shall replenish the Security Deposit/ Performance Security to the extent the amount is debited within 15 30 days period, failing which, it shall be treated as Licensee Event of Default and will entitle DMRC to deal with the matter as per the provisions of RFP and DLADefault.