Equity Support and share retention Agreement

EQUITY SUPPORT AND SHARE RETENTION AGREEMENT

THIS EQUITY SUPPORT AND SHARE RETENTION AGREEMENT IS MADE ON THIS THE __________________ DAY OF ________________, 2007:

AMONGST

THE SPONSORSX  INDUSTRIAL & MERCANTILE CORPORATION (PRIVATE) LIMITED

18 Kawran Bazar Commercial Area

Dhaka-1215

FINANCIAL COMPANY 1

11 Coller Buay

14-01 The Arcade

Singapore 049317

THE BORROWER COMPANY 1X  Centre (9th Floor)

18 Kawran Bazar Commercial Area

Dhaka-1215

 

THE AGENT BANK 1 Hadi Mansion (2nd Floor)

2, Dilkusha Commercial Area

Dhaka-1000.

THE LENDERS

 

Hadi Mansion (2ndFloor)2, Dilkusha Commercial Area

Dhaka-1000.

1 Gulshan Avenue, Gulshan-1,

Dhaka-1212, Bangladesh.

UTC Building (16thFloor)8 Panthapath, Kawran Bazar

Dhaka – 1215, Bangladesh.

BSB Building, 10 & 17-19th Floor

8, Rajuk Avenue,

Dhaka-1000, Bangladesh.

68 Dilkusha Commercial Area

Dhaka – 1000, Bangladesh.

18 Dilkusha C/A

Dhaka 1000, Bangladesh.

7-8 Motijheel C/A

Dhaka 1000, Bangladesh.

HRC Bhaban, 46 Kawran Bazar C.A

Dhaka 1215, Bangladesh.

Progoti RPR Centre

20-21, Kawran Bazar

Dhaka – 1215, Bangladesh.

BRAC Centre (Level 10 & 11),

75, Mohakhali

Dhaka 1212, Bangladesh.

24-25 Dilkusha C/A

Dhaka 1000, Bangladesh.

Head Office, 60 Motijheel C/A

Dhaka 1000, Bangladesh.

WHEREAS

NOW IT IS HEREBY AGREED as follows:?

SECTION 1 – INTERPRETATION

‘AGENT’ means BANK 1  or any successor as Agent of the Lenders under this Agreement.

‘CURRENT RATIO’ means the ratio calculated as dividing current assets by current liabilities at every semi-annual end based on the financial statement of the Borrower which shall not be more than 1.00 in any given year.

‘DEBT EQUITY RATIO’ means the ratio of Debt and equity of the Borrower which shall be maintained at _______:________.

‘DEBT SERVICE COVERAGE RATIO’ or ‘DSCR’ means the ratio to be calculated as total net profit after taxes plus all non-cash charges and interest divided by the total debt payment including principal repayment and interest thereon in any particular year. DSCR is to be calculated at the end of each financial year based on the financial statement of the Borrower.

‘ESCROW ACCOUNT AGREEMENT’ means the Escrow Account Agreement dated _______________ executed among the Borrower, the Agent and the Lenders.

‘FINANCIAL PLAN’ means the proposed method of financing the estimated cost of the Project as set out in Facility Agreement.

‘NET GEARING RATIO’ has the same meaning ascribed to it under the Facility Agreement.

‘PARTIES’ mean all the signatories of this agreement collectively (each one being referred to as ‘Party’).

‘PROJECT’ means the project described in the Facility Agreement.

‘PROJECT COST’ means the cost of the Project as described in the Facility Agreement.

SECTION 2 – COMPLETION AND DEFICIENCY FINANCING

the Sponsors shall provide necessary equity or funds to cover such shortfall.

the Agent with the instructions of the Lenders shall issue by facsimile a notice to the Borrower with a copy to the Sponsors the amount of each such deficiency (“the Notice of Deficiency”). The Notice of Deficiency shall specify the relevant Deficiency and the amount thereof to be funded.

2.6       In the event of the service of more than one Notice of Deficiency to the Borrower under Clause 2.5 above, the obligations of the Borrower and the Sponsors pursuant to this Section 2 shall be governed by the Deficiency specified in the latest of such notice.

2.7       Upon the occurrence of the events described in Clause 2.3 in the foregoing, the Sponsors hereby agree that the funds necessary to rectify a Deficiency pursuant to Clause 2.5 shall be made by 3 days (or such date as the Agent notifies in such notice) of the date of such occurrence or knowledge of a Deficiency.

2.8       Upon application of the funds provided by the Sponsors, the Borrower shall within 3 days of such application issue a notice to the Sponsors certifying the amount and purpose of such application and that it has been applied in a manner consistent with the Financial Plan.

2.9       The parties hereby acknowledge that it is the prerogative of the Agent and/or Lenders to call for additional funds in accordance with this Section but it shall not be an obligation to do so, nor shall the Agent and/or Lenders be liable to any party hereto for any action taken or not taken by the Agent and/or Lenders under this Section.

SECTION 3 – SHARE RETENTIONÿÿND OTHER MATTERSÿÿThÿÿSponÿÿrs confirm aÿÿ acknowledge that the present paid up capital of the Borrower is Tk. 71,50,00,000.00 only (Taka seventy one crore fifty lac) only divided into 71,50,00,000 ordinary shares of Tk. 100.00 (Taka one hundred) each only. The ratio of shareholding in the capital of the Borrower is as follows:

NamePercentage of shareholding
X  Industrial & Mercantile Corporation (Pvt.) Limited63.84
Euro05.38
Other Shareholders30.78
TOTAL100%

SECTION 4 – INDEMNITY

4.1       The Sponsors undertake to indemnify the Lenders against all actions, proceedings, claims, demands, damages, cost, charges and expenses in respect of or arising out of this Agreement and for the enforcement of any of the provision herein.

SECTION 5 – MISCELLANEOUS

5.1       Any notice, request or instruction required to be given herein shall be in writing and delivered to a Party at the addresses specified hereunder pursuant to any of the methods specified in the Facility Agreement, which shall become effective as specified therein.

5.2       This Deed shall inure to the benefit of and be binding upon the successors and assigns of the Lenders.

5.3       If any provision of this Deed is prohibited or held to be invalid, illegal, or unenforceable, the Parties agree, to the fullest extent permitted by law, that the validity, legality, and enforceability of the other provisions shall not be affected or impaired thereby.

5.4       No failure or delay by any of the Lenders or Agent in exercising any right, power, or remedy shall operate as a waiver thereof or otherwise impair any of its rights, powers, or remedies. No single or partial exercise of any such right shall preclude any other or further exercise thereof or the exercise of any other legal right. No waiver of any such right shall be effective unless notice is given in writing.

A S  W I T N E S S the hands of the parties hereto or their authorized representatives the day, month and year first above written.

THE SPONSORSFor: X  Industrial & Mercantile Corporation (Pvt.) Limited___________________________

Name:

Designation:

Address:X  Centre (9th Floor), 18 Kawran Bazar C/A, Dhaka-1215

Tel No. :

Fax No.:

For: FINANCIAL COMPANY 1___________________________

Name:

Designation:

Address: 11 Collyer Quay No. 14-01 The Arcade, Singapore 049317

Tel No. :

Fax No.:

WITNESS :By__________________________Name: Md. A

Address:  X  Centre (9th Floor), 18 Kawran Bazar C/A, Dhaka-1215

WITNESS :By__________________________Name:  Md. B

Address: X  Centre (9th Floor), 18 Kawran Bazar C/A, Dhaka-1215

THE BORROWERCOMPANY 1By___________________________

Name   :

Title     :

Address: X  Centre (9th Floor), 18 Kawran Bazar C/A, Dhaka-1215

Tel No. : 9137485-6

Fax No.:  9139284

WITNESS :By__________________________Name   :

Title     :

Address: X  Centre (9th Floor), 8 Kawran Bazar C/A, Dhaka-1215

 

THE AGENT BANK 1 By___________________________

Name    :

Title      :

Address : 2, Dilkusha Commercial Area

Dhaka-1000

Phone   : +880 2 9550181

Fax      : +880 2 9563917

SWIFT: SCBLBDDX

WITNESS :By__________________________Name  :

Title    : Address : 2, Dilkusha Commercial Area

Dhaka-1000

THE LENDERBANK 1 By___________________________

Name    :

Title      :

Address : 2, Dilkusha Commercial Area

Dhaka-1000

Phone   : +880 2 9550181

Fax      : +880 2 9563917

SWIFT: SCBLBDDX

WITNESS :By__________________________Name     :

Title       :

Address : 2, Dilkusha Commercial Area

Dhaka-1000

THE LENDERBANK 2 By___________________________

Name     :

Title       :

Address : 1 Gulshan Avenue, Gulshan-1,

Dhaka-1212, Bangladesh.

Phone   : +8802 8824051

Fax      : +8802 8813543

SWIFT : BRAKBDDH

WITNESS :By__________________________Name     :

Title       :

Address : 1 Gulshan Avenue, Gulshan-1,

Dhaka-1212, Bangladesh.

THE LENDERFINANCIAL COMPANY 2 By___________________________

Name     :

Title       :

Address : UTC Building (16th Floor)

8 Panthapath, Kawran Bazar

Dhaka – 1215, Bangladesh.

Phone   : +8802 8117526, +8802 8111235, +8802 9114385

Fax      : +8802 8116663

WITNESS :By__________________________Name     :

Title       :

Address : UTC Building (16th Floor)

8 Panthapath, Kawran Bazar

Dhaka – 1215, Bangladesh.

THE LENDERBANK 3 By___________________________

Name     :

Title       :

Address : BSB Building, 10 & 17-19th Floor

8, Rajuk Avenue,

Dhaka-1000, Bangladesh.

Phone   :+8802 9563020, +8802 9562060

Fax      : +8802 9562015

SWIFT            : IFCIBDDH

WITNESS :By__________________________Name     :

Title       :

Address : BSB Building, 10 & 17-19th Floor

8, Rajuk Avenue,

Dhaka-1000, Bangladesh.

THE LENDERBANK 4 By___________________________

Name     :

Title       :

Address : 68 Dilkusha Commercial Area

Dhaka – 1000, Bangladesh.

Phone   : +8802 7170138

Fax      : +8802 9569762

Swift    : MTBLBDDH

WITNESS :By__________________________Name     :

Title       :

Address: 68 Dilkusha Commercial Area

Dhaka – 1000, Bangladesh.

THE LENDERBANK 5 By___________________________

Name     :

Title       :

Address : 18 Dilkusha C/A

Dhaka 1000, Bangladesh.

Phone   : +8802 9563081, +8802 9563082-5

Fax      : +8802 9563953, +8802 9569404

SWIFT: NBLBBDDH

WITNESS :By__________________________Name     :

Title       :

Address: 18 Dilkusha C/A

Dhaka 1000, Bangladesh.

THE LENDERFINANCIAL COMPANY 3 By___________________________

Name     :

Title       :

Address : 7-8 Motijheel C/A

Dhaka 1000, Bangladesh.

Phone   : +8802 9561902-4, +8802 9566283

Fax      : +8802 9566290

SWIFT            : NCCLBDDH

WITNESS :By__________________________Name     :

Title       :

Address: 7-8 Motijheel C/A

Dhaka 1000, Bangladesh.

THE LENDERBANK 7 By___________________________

Name     :

Title       :

Address : HRC Bhaban, 46 Kawran Bazar C.A

Dhaka 1215, Bangladesh.

Phone   : +8802 9118161, +8802 9138361

Fax      : +8802 9134794

SWIFT            : ONEBBDDH

WITNESS :By__________________________Name     :

Title       :

Address: HRC Bhaban, 46 Kawran Bazar C.A

Dhaka 1215, Bangladesh.

THE LENDERBANK 8 By___________________________

Name     :

Title       :

Address : Progoti RPR Centre

20-21, Kawran Bazar

Dhaka – 1215, Bangladesh.

Phone   : +8802 9121845, +8802 9139657

Fax      : +8802 9133645

Swift    : PRMRBDDH

WITNESS :By__________________________Name     :

Title       :

Address:  Progoti RPR Centre

20-21, Kawran Bazar

Dhaka – 1215, Bangladesh.

THE LENDERFINANCIAL COMPANY 3 By___________________________

Name     :

Title       :

Address : BRAC Centre (Level 10 & 11),

75, Mohakhali

Dhaka 1212, Bangladesh.

Phone   : +8802 9892877-80

Fax      : +8802 9892882

WITNESS :By__________________________Name     :

Title       :

Address: BRAC Centre (Level 10 & 11),

75, Mohakhali

Dhaka 1212, Bangladesh.

THE LENDERBANK 9By___________________________

Name     :

Title       :

Address : 24-25 Dilkusha C/A

Dhaka 1000, Bangladesh.

Phone   : +8802 9554251, +8802 9553371

Fax      : +8802 9563991

SWIFT: SBINBDDN

WITNESS :By__________________________Name     :

Title       :

Address: 24-25 Dilkusha C/A

Dhaka 1000, Bangladesh.

THE LENDER BANK 10By___________________________

Name     :

Title       :

Address : Head Office, 60 Motijheel C/A,

Dhaka 1000, Bangladesh.

Phone   : +8802 9555075, +8802 9568690-3

Fax      : +8802 9560587

SWIFT            : UCBLBDDH

WITNESS :By__________________________Name     :

Title       :

Address:  Head Office, 60 Motijheel C/A,

Dhaka 1000, Bangladesh.

Drafted by:

For: “The Lawyers & Jurists”
M.L.Hotel Tower Ltd,208,Shahid Syed Nazrul Islam Sarani,
Bijoy Nagar, Dhaka-1000.
www.lawyersnjurists.com

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