Supplemental Hypothecation Agreement

This Supplemental Agreement Of Hypothecation made this day of Between LIMITED, a Company registered under the Indian , and having its Registered Office at (hereinafter referred to as "the Borrower" which expression shall unless repugnant to the context or meaning thereof be deemed to include their successors and assigns) of the First Part (1) , a Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) and havings its Central Office, at and havings its Bombay Office, at of the Second Part (2) , a Bank Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) and havings its Head Office at and having its Bombay Branch at of the Third Part (3) , a Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) and having its Head Office at and havings its Bombay Office at of the Fourth Part, (all the above mentioned Banks being hereinafter collectively referred to as "the Participating Banks" which expression shall wherever the context so permits mean and include each of them and/or any one or more of them acting jointly or severally for itself and for and on behalf of the others where any one or more of them has/have been authorised by the others to act for and on behalf of them) (the is hereinafter referred to as "the Lead Bank") and shall also include the respective successors and assigns of each one of them and/or any one or more or all of them.

WHEREAS

By a Joint Deed of Hypothecation dated and made between the parties hereto, the Borrower in consideration of the Participating Banks at the request of the Borrower having granted Cash Credit facility for an amount not exceeding an aggregate limit of in the proportion as set out therein by way of a First Charge by hypothecation on all the moveable properties of the Borrower, together with all consumable stores, components and spares which now belong to or may hereafter from time to time during the continuance of this security belong to the Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower's factory, godown and/or other premises or wherever else, the same may be situate, stored or lying or being including any such raw materials articles or goods, stores spare and components or other similar moveable property in course of transit or delivery to the Borrower or that may be held by any Party any where to the order and disposition of the Borrower (and all of which hereinafter for brevity's sake referred to as "the said goods") and

b) all the Borrower's present and future book debts outstanding monies, receivables, claims, bills, rights to or immoveable properties and moveable assets and which are now due, owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due owing payable or belonging to the Borrower in the course of its business by any person, firm Company or body corporate or by Govt. of India or any State Govt. or Indian Railways or any Govt. Office or any Municipal or local or public or Semi Govt. authority or any body corporate or undertaking or project of whatsover in the public Sector (and all of which are hereinafter for brevity's sake referred to as "the said debts and assets")

3. At the request of the Borrower, the Participating Banks have agreed to further increase the maximum limits of the aforesaid facilities as mentioned below:

4. The parties hereto have agreed to enter into this Supplemental Hypothecation Agreement which is supplemental to the Joint Deed of Hypothecation dated

It Is Hereby Agreed by and between the parties hereto as follows:

1. In consideration of the Participating Banks having at the request of the Borrower agreed to further increase their respective maximum limits of the facilities granted to the Borrower as

The Borrower agrees that all stocks, the moveable properties of the Borrower as per the particulars mentioned below:

Short Particulars Of Goods

Raw Materials such as:

Packing Materials such as:

Plastic bags and films, Cardboard Boxes, Clips for packing machines, staples for boxes, etc.

Goods in process, finished goods together with all consumable stores, components and spares which now belong to or may hereafter from time to time during the continuance of this security belong to the Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower's factory, godown and/or other premises or wherever else, the same may be situated, stored or lying or being including any such raw materials articles or goods, stores spare and components or other similar moveable property in course of transit or delivery to the Borrower or that may be held by any party anywhere to the order and disposition of the Borrower (and all of which hereinafter for brevity's sake referred to as "the said goods") and

(b) all the Borrower's present and future book-debts outstanding moneys, receivables, claims, bills, rights to or in moveable properties and moveable assets and which are now due, owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due owing payable or belonging to the Borrower in the course of its business by any person, firm company or body corporate or by Govt. of India or any State Govt. or Indian Railways or any Govt. Office or any Municipal or local or public or Semi Govt. authority or any body corporate or undertaking or project or whatsoever in the public sector (and all of which are hereinafter for brevity's sake referred to as "the said debts and assets") shall constitute a security to each of the Participating Banks not only for the original respective limits aggregating to but also for due repayment by the Borrower to them of the overall increased limit of comprising of increased limit in case of each of the Participating Banks as mentioned above together with interest, Commission, discounting charges and all the other amounts payable to the participating Banks by whatsoever name called, in the manner mentioned in the said Joint Deed of Hypothecation dated .

2. The Borrower further agrees that all the provisions in the Joint Deed of Hypothecation dated shall apply for the purpose of security conferred by this Supplemental Hypothecation Agreement on the stocks, debts and assets described herein and the Borrower hereby confirms, adopts and reiterate in all respects the said Joint Deed of Hypothecation dated , which it is further confirmed is in full force and effect as modified and enlarged hereby.

IN WITNESS WHEREOF the parties hereto have hereunto set their respective seal hands on the day and year first hereinabove written.

THE COMMON SEAL OF

LIMITED was hereto

affixed pursuant to a Resolution of its Board of

Directors passed at is meeting held on the

day of

in the presence of Mr.

being the Director of the said Company and

Mr.

the Secretary of the said Company, who in

token thereof subscribed their respective

signatures hereunto.

SIGNED SEALED AND DELIVERED by

Mr.

the Constituted Attorney of

SIGNED SEALED AND DELIVERED by

Mr.

the Constituted Attorney of

SIGNED SEALED AND DELIVERED by

Mr.

the Constituted Attorney of

DATED THIS DAY OF

KARNATAKA EXPLOSIVES LIMITED

TO