Security Clause For Joint Equitable Mortgage

(a) The Loan Amounts due from the Borrower together with interest there on at the respective agreed rates, compound/additional interest, commitment charges, other charges, costs, expenses and other monies payable as stipulated in these presents shall be secured by :-

(i) a mortgage by deposit of title deeds on the Company's lands and immoveable properties situated at in the State of both present and future;

(ii) a First Charge by way of Hypothecation of all the Company's moveables save and except book debts but including moveable machinery, machinery spares, tools and accessories present and future, subject to the prior charge's created and/or to be created in favour of the Company's Bankers over specified moveables for securing borrowings for working capital requirements;

(b) If so required by the Lenders at any time, the borrower shall secure the Loan amounts, together with interest, compound interest, commitment charge other charges costs, expenses and other monies payable as stipulated in these presents by a Contributory Legal mortgage in English form on all the properties of the Borrower immoveable and moveable as referred to in sub-clause (a) above present and future (including its uncalled Capital) providing that in the event of default on the part of the Borrower the concerned Lender shall have the right, inter alia to take over the management of the Borrower;

(c) For the purposes aforesaid, the Borrower shall execute undertaking (s) in favour of the Lenders in a form and manner approved by the Lenders, agreeing inter alia, to execute in favour of the Lenders a Contributory Legal mortgage in form whenever called upon to do so by the Lenders;

The Borrower shall also execute in favour of the Lenders irrevocable power(s) of attorney authorising the concerned Lender to execute on behalf of the Company a Legal mortgage in English form in its (Lender's) own favour in the event of the Borrower failing to execute the Legal mortgage in English form when called upon to do so by the concerned Lender.

4. The charge in favour of the Lenders on the moveable properties shall be subject to the charge created or to be created by the Company in favour of its bankers on stocks of raw materials, semi-finished and Finished goods, consumable stores and book debts for its working capital requirements.

The Borrower shall not without the previous consent of the Lenders in writing, raise funds against any of its other assets or for any other purpose or from any person other than its bankers or create a charge on any of its assets except as herein provided.

5. The aforesaid charges in favour of the Lenders shall be a first charge ranking pari-passu with the charges created and/or to be created by the Company as security in favour of the Financial Institutions as mentioned herein below;

A. (hereinafter referred to as ) in respect of its Rupee Term Loan of lent and advanced and/or agreed to be lent and advanced by (hereinafter referred to as "the Loans")

B. (hereinafter referred to as "") in respect of its Rupee Term Loan of lent and advanced and/or agreed to be lent and advanced by (Hereinafter referred to as "the Loans");

C. (hereinafter referred to as ) in respect of its Rupee Term Loan of lent and advanced and/or agreed to be lent and advanced by to the Company (hereinafter referred to as "the Loan");

6. The Borrower shall subject to the charges aforesaid make out a clear and marketable title to the properties to be mortgaged/charged to the Lenders free from encumbrances and reasonable doubts and shall at its own expenses remove all defects in title, and obtain all such concurrences, consents and approvals as may be necessary for creating the mortgage/charge as aforesaid in favour of the Lenders.

7. The Borrower shall at its own cost execute and procure the execution and registration of a Pari Passu Inter Se Agreement by the Financial Institution with the Lenders to which the Borrower shall also be a party, if so required by the Lenders, providing inter alia, that the mortgages, charges and securities created and/or to be created respectively in favour of each of the Financial Institutions, and the Lenders shall all rank pari passu Inter Se without any preference or priority of one over the other or others of them for all purposes and to all intents subject to the prior charges created and/or to be created in favour of the Borrower's Bankers on specified moveables for securing borrowings for working capital requirements and also providing for all moneys resulting from the enforcement or realisation of the said securities or any of them shall be distributed and shared between the Financial Institution, and the Lenders without any preference or priority of one over the other or others of them for all purposes and to all intents and including therein specifically the provisions regarding insurance, custody of insurance policy, custody of title deeds, prohibition of prepayment by the Company, acceleration of debts and other usual terms provisions and stipulations as may be agreed to by the Financial Institutions, the Debenture Trustees and the Lenders in that behalf.

THE COMMON SEAL OF was hereto a fixed pursuant to the Resolution of the Board of Directors passed on the day of in the presence of (1) & (2) two of the Members of the Board of Directors of the Company and

The Secretary of the Company all of whom have affixed their respective signatures hereto in the presence of :

SIGNED AND DELIVERED BY THE within named