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

Interest Free Security Deposit / Performance Security. a) The selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit/Performance Security to DMRC equivalent to half yearly (6 months) License Fee as quoted by the bidder for the total 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 selected Bidder is required to pay & deposit minimum 25% of the Interest Free Security Deposit/Performance Security in the form of DD/PO only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DD/PO in favour of DMRC 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 & issued from a Scheduled Commercial Bank based in India, or Irrevocable Bank Guarantee in the prescribed format, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial Bank, 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, on rolling basis well before expiry of previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and 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 notice to the licensee. The BG issuing bank must be on structured financial messaging system (SFMS) platform and an advice of Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC through SFMS before it becomes operative & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain from DMRC details of its designated bank & to advise these to the BG issuing Bank & request them to send advice of the BG through the SFMS platform. DMRC’s designated bank, at present for confirmation of bank guarantee is detailed as under: d) In case of a JV/ Consortium, the Interest Free Security Deposit/ performance security is to be submitted in the name of its 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/ Consortium for an amount proportionate to percentage stake or otherwise is also acceptable.

Interest Free Security Deposit / Performance Security. a) 7.1 Interest Free Security Deposit / Performance Security: The selected Bidder(s)/Licensee Licensee shall submit & pay Interest Free Security Deposit/Deposit / Performance Security to DMRC in advance equivalent to half yearly the amount of fixed Annual (6 12 months) License Fee as quoted by the bidder for the total number stations handed over. The amount will be paid in as per clause 6.2 of trains as mentioned in Annexure-1 for Line-8the DLA. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The selected Bidder is required to pay & deposit minimum Minimum 25% of the 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 free Security Deposit/Performance Security Deposit up to Rs.10.00 Lakhs will be accepted in the form of DD/PO only in favour of DMRC Ltd, payable Ltd. Interest free security deposit/performance Security is to be paid in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% following form. Escalated amount of Interest Free Security DepositDeposit shall be deposited in DD/Performance Security can be paid &submitted in the form of PO or E-mode only. 7.1.1 Bank Guarantee (BG)/DDDraft/PO in favour of DMRC 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 LtdLtd., payable at New Delhi & and issued from a Scheduled Commercial Bank based in India, or . 7.1.2 Irrevocable Bank Guarantee in the prescribed format, as per annexure-III, of DLA, format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BankBanks, 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, on rolling basis years well before expiry of previous earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and encashed 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 notice intimation to the licensee. The BG scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system (SFMSsystem) platform and an platform. A separate advice of Bank Guarantee must the BG shall invariably be sent by the issuing bank to the designated bank of DMRC DMRC, through SFMS before it becomes 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 from DMRC the details of its DMRC’s designated bank & to advise these to and request the BG issuing Bank & request them bank to send the advice of the BG through the SFMS platformto DMRC’s Bank. DMRC’s designated bankbank at present, at present for confirmation confirmation/sending advice of the BG of bank guarantee is detailed as under: d) 7.1.3 In case of a JV/ Consortiumjoint venture, the Interest Free Security Deposit/ Deposit/performance security is to be submitted in the name of its JV/Consortiumthe JV only. 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/ Consortium JV for an amount proportionate to percentage stake 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. a) The selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit/Performance Security to DMRC equivalent to half yearly (6 months) License Fee as quoted by the bidder for the total 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 selected Bidder is required to pay & deposit minimum 25% of the Interest Free Security Deposit/Performance Security in the form of DD/PO only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DDBG)/FDR/DD/PO in favour of DMRC 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 & 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. 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, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial Bank, 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, on rolling basis well before expiry of previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and 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 notice to the licensee. The BG issuing bank must be on structured financial messaging system (SFMS) platform and an advice of Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC through SFMS before it becomes operative & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain from DMRC details of its designated bank & to advise these to the BG issuing Bank & request them to send advice of the BG through the SFMS platform. DMRC’s DMRC‟s designated bank, at present for confirmation of bank guarantee is detailed as under: d) In case of a JV/ Consortium, the Interest Free Security Deposit/ performance security is to be submitted in the name of its 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/ Consortium for an amount proportionate to percentage stake or otherwise is also acceptable.

Interest Free Security Deposit / Performance Security. a) 7.1 Interest Free Security Deposit / Performance Security: The selected Bidder(s)/Licensee Licensee shall submit & pay Interest Free Security Deposit/Deposit / Performance Security to DMRC in advance equivalent to half yearly (6 months) the amount of the first yearAnnual License Fee as quoted by the bidder for the total 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 regardstation handed over. b) The selected Bidder is required to pay & deposit minimum 25% of the Interest Free Security Deposit/Performance Security in the form of DD/PO only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of 7.1.1 Bank Guarantee (BG)/DDDraft/PO in favour of DMRC 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 LtdLtd., payable at New Delhi & and issued from a Scheduled Commercial Bank based in India, or . 7.1.2 Irrevocable Bank Guarantee in the prescribed format, as per annexure-III, of DLA, format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BankBanks, 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, on rolling basis years well before expiry of previous earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and encashed 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 notice intimation to the licensee. The BG scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system (SFMSsystem) platform and an platform. A separate advice of Bank Guarantee must the BG shall invariably be sent by the issuing bank to the designated bank of DMRC DMRC, through SFMS before it becomes 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 from DMRC the details of its DMRC’s designated bank & to advise these to and request the BG issuing Bank & request them bank to send the advice of the BG through the SFMS platformto DMRC’s Bank. DMRC’s designated bankbank at present, at present for confirmation confirmation/sending advice of the BG of bank guarantee is detailed as under: d) 7.1.3 In case of a JV/ Consortiumjoint venture, the Interest Free Security Deposit/ Deposit/performance security is to be submitted in the name of its JV/Consortiumthe JV only. 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/ Consortium JV for an amount proportionate to percentage stake 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 three year 20% 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 Draft License Agreement. 7.5 License may also submit the IFSD though FDR. (Annexure-1(A)).

Interest Free Security Deposit / Performance Security. a) 7.1 Interest Free Security Deposit / Performance Security: The selected Bidder(s)/Licensee Licensee shall submit & pay Interest Free Security Deposit/Deposit / Performance Security to DMRC in advance equivalent to half yearly the amount of fixed Annual (6 12 months) License Fee as quoted by the bidder for the total number station handed over. The amount will be paid in two installments as per clause 6.2 of trains as mentioned in Annexure-1 for Line-8DLA. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The selected Bidder is required to pay & deposit minimum Minimum 25% of the Interest Free Security Deposit/Performance Security this amount would be paid in the form of DD/PO only in favour favor of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the Ltd. and remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DDBG/PO FDR/DD/PO. Interest free Security Deposit upto Rs 10.00 lakhs will be accepted in favour of DMRC 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: : 7.1.1 Bank Draft/PO Draft in favor favour of DMRC LtdDMRC, payable at New Delhi & issued from a Scheduled Commercial Bank based in India, or 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, as per annexure-III, of DLA, format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BankBanks, 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 years, on rolling basis two years well before expiry of previous earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and encashed 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 notice to the licensee. The BG issuing bank must be on structured financial messaging system (SFMS) platform and an advice of Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC through SFMS before it becomes operative & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain from DMRC details of its designated bank & to advise these to the BG issuing Bank & request them to send advice of the BG through the SFMS platform. DMRC’s designated bank, at present for confirmation of bank guarantee is detailed as under:. d) 7.1.4 In case of a JV/ Consortiumjoint venture, the Interest Free Security Deposit/ performance security is to be submitted in the name of its the 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/ Consortium JV for an amount proportionate to percentage stake their participation ratio or otherwise is also acceptable. 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 any consideration of interest, after completion of the agreement after completion of Lock in period of two years. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security for: - a) Any penalty imposed 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 30 days period, failing which, it shall be treated as Licensee Event of Default.

Interest Free Security Deposit / Performance Security. a) Interest Free Security Deposit / Performance Security: The selected Bidder(s)/Licensee Licensee shall submit & pay Interest Free Security Deposit/Deposit / Performance Security to DMRC in advance equivalent to half yearly the amount of fixed Annual (6 12 months) License Fee as quoted by the bidder for the total number station handed over.The amount will be paid in two installments as per clause 6.2 of trains as mentioned DLA. Interest free security deposit/performance Security is to be paid in Annexure-1 for Line-8the following form.Interest free security deposit upto Rs. May also please refer 10.00 lakhs has to Clause 3.5 be paid by DD/PO only (Chapter 3) in favour of RFP DMRC Ltd, and drawn on a scheduled Commercial bank in this regard. b) The selected Bidder is required to pay & deposit Delhi). For amount exceeding Rs. 10 lakhs, minimum 2550 % of the Interest Free Security Deposit/Performance Security in the form of DD/PO only (upto a maximum of 50 lakhs) and 50% or balance amount in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DDBG/PO FDR in favour of DMRC Ltd. Illustration: If Interest Free Security DepositDeposit to be paid is calculated as Rs. 75 lakhs, then first Rs. 10 lakhs by DD/Performance Security upto Rs.10 lakh shall be payable PO. For remaining Rs. 65 lakhs, Rs. 32.5 lakhs by DD/PO and remaining Rs. 32.5 lakhs by BG/FDR. Therefore in the above illustration Rs. 42.5 lakhs is to be paid in form of DD/PO only. c) The and balance Rs. 32.5 lakhs in form of BG/FDR.The interest free Security Deposit/ Performance Security shall be accepted in the following form: : 7.1.1 Bank Draft/PO in favor favour of DMRC LtdLtd., payable at New Delhi & issued from a Scheduled Commercial Bank based in India, or or 7.1.2 Fixed Deposit Receipt of a Scheduled Commercial Bank / based in India and payable at New Delhi 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, as per annexure-III, of DLA, format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BankBanks, acceptable to DMRC, from/payable at branches located in Delhi/ 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 years, on rolling basis two years well before expiry of previous earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and encashed 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 notice intimation to the licensee. The BG scheduled commercial Bank issuing the above bank guarantee must be on the SFMS (structured financial messaging system (SFMSsystem) platform and an advice platform. A separate advise of Bank Guarantee must the BG shall invariably be sent by the issuing bank to the designated bank of DMRC DMRC, through SFMS before it becomes 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 from DMRC the details of its designated DMRC‟s bank & to advise these to and request the BG issuing Bank & request them bank to send advice the advise of the BG through the SFMS platform. DMRC’s designated bank, at present for confirmation of bank guarantee is detailed as under:SFMS. d) 7.1.4 In case of a JV/ Consortiumjoint venture, the Interest Free Security Deposit/ performance security is to be submitted in the name of its the 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/ Consortium JV for an amount proportionate to percentage stake their participation ratio or otherwise is also acceptable.

Interest Free Security Deposit / Performance Security. a) The selected Bidder(s)/Licensee shall submit & pay Interest Free Security Deposit/Performance Security to DMRC equivalent to half yearly (6 months) License Fee as quoted by the bidder for the total 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 selected Bidder is required to pay & deposit minimum 2535% of the Interest Free Security Deposit/Performance Security in the form of DD/PO PO/RTGS/NEFT only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 7565% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DDBG)/FDR/PO 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 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, payable at New Delhi & 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. 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, as per annexure-III, of DLA, issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial Bank, 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, on rolling basis well before expiry of previous Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and 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 notice to the licensee. The BG issuing bank must be on structured financial messaging system (SFMS) platform and an advice of Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC through SFMS before it becomes operative & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain from DMRC details of its designated bank & to advise these to the BG issuing Bank & request them to send advice of the BG through the SFMS platform. DMRC’s designated bank, at present for confirmation of bank guarantee is detailed as under: d) In case of a JV/ Consortium, the Interest Free Security Deposit/ performance security is to be submitted in the name of its 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/ Consortium for an amount proportionate to percentage stake or otherwise is also acceptable.

Interest Free Security Deposit / Performance Security. a) 7.1 Interest Free Security Deposit / Performance Security: The selected Bidder(s)/Licensee Licensee shall submit & pay Interest Free Security Deposit/Deposit / Performance Security to DMRC in advance equivalent to half yearly (6 months) the amount of fixed Annual License Fee as quoted by the bidder for the total number of trains as mentioned in Annexure-1 for Line-8station handed over. May also please refer to Clause 3.5 (Chapter 3) of RFP in this regard. b) The selected Bidder is required to pay & deposit minimum 25% of the Interest Free Security Deposit/Performance Security in the form of DD/PO only in favour of DMRC Ltd, payable in Delhi/ New Delhi & issued by a scheduled commercial bank , the remaining or 75% of Interest Free Security Deposit/Performance Security can be paid &submitted in the form of Bank Guarantee (BG)/DD/PO in favour of DMRC 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/ Deposit / Performance Security shall be accepted in the following form: : 7.1.1 Bank Draft/PO Draft in favor favour of DMRC LtdDMRC, payable at New Delhi & issued from a Scheduled Commercial Bank based in India, or 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, as per annexure-III, of DLA, format (Annexure-1) issued by the State Bank of India or any other Nationalized Bank or any other Scheduled Commercial BankBanks, 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 years, on rolling basis well two years before expiry of previous earlier Bank Guarantee, failing which the previous Bank Guarantee shall be invoked and encashed 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 notice to the licensee. The BG issuing bank must be on structured financial messaging system (SFMS) platform and an advice of Bank Guarantee must invariably be sent by the issuing bank to the designated bank of DMRC through SFMS before it becomes operative & acceptable to DMRC. It is therefore in the own interest of the licensee to obtain from DMRC details of its designated bank & to advise these to the BG issuing Bank & request them to send advice of the BG through the SFMS platform. DMRC’s designated bank, at present for confirmation of bank guarantee is detailed as under:. d) 7.1.4 In case of a JV/ Consortiumjoint venture, the Interest Free Security Deposit/ performance security is to be submitted in the name of its the 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/ Consortium JV for an amount proportionate to percentage stake their participation ratio or otherwise is also acceptable. 7.2 Interest Free Security Deposit / Performance Security will be refunded after successful completion of the full term of the License period i.e. 5 years from commencement date of License Agreement and after adjusting any payable dues, reconciliation etc without any consideration of interest, after termination of agreement. 7.3 DMRC reserves the right for deduction of DMRC dues from Licensee’s Interest Free Security Deposit / Performance Security for: - a) Any penalty imposed 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 30 days period, failing which, it shall be treated as Licensee Event of Default.