EXHIBIT 10.18
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MEMORANDUM OF LEAVE AND LICENCE
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This Memorandum of Leave and Licence made at Mumbai on this 18th day of April,
1998 between Xxxxx Xxxxxxxx residing at 000 Xxxxx Xxxx, Xxxxxxxxxx XX
15243,U.S.A., and Xxxxx Xxxxxxx residing at 0000 Xxxxxxxx Xxxxx, Xxxxxxxxxx XX
00000, X.X.X. (hereinafter referred to as "the Licensors" which expression shall
unless repugnant to its context shall mean and include his heirs, successors and
assigns) of the One Part;
And
Xxxxx Systems Private Limited a company incorporated under the Companies Act,
1956 and having its Registered Office at Xxxxxxx Xxxxxx, 00 Xxxxx Xxxxx, Xxxx
000 014, (hereinafter referred to as "the Lecensee" which expression shall
include its successors and permitted assigns) of the Other Part.
WHEREAS the Licensors are the owner of commercial premises at 207 & 208 Xxxxxx
Xxxxxxxx, Xxxxxxx-Xxxxx Xxxx, Xxxxxxx (X), Xxxxxx 000 000.
WHEREAS the Licensee is desirous of taking a portion of the said commercial
premises namely office no: 207 & 208 at "Xxxxxx Xxxxxxxx", Andheri-Kurla Road,
Marol Village, Andheri (E), Mumbai 400 069 (hereinafter referred to as "the
said premises") on leave and license basis.
NOW THIS MEMORANDUM WITNESSETH AS UNDER:
1. The Licensee has been given by the Licensors a licence to make use of the
said premises.
2. The said license has been and shall be regarded as operative from April 16,
1998 to March 31, 2003. The Licensee has agreed to and shall continue to pay
license fee in the sum of Rs.20,000 (Rupees Twenty thousand only) per month
for office no. 207, Rs.15,000 (Rupees Fifteen thousand only) per month for
Office no. 208 aggregating to Rs.35,000 (Rupees Thirty five thousand only)
per month for all offices or such license fee as may be mutually agreed from
time to time pursuant to the review as set out in clause 3 below. The said
sum shall be paid in advance, by the Licensee to the Licensors regularly on
1st day of every English calendar month.
Both the Licensors are equal owners of the said premises and the Licensee
shall pay the monthly license fee in equal proportion to both Licensors by
drawing two cheques favouring each Licensor for one half of the licence fee
payable pursuant to this Memorandum.
3. The license fee shall be reviewed in March each year beginning from March,
1999. Pursuant to such review, the license fee may be revised from time to
time as mutually agreed in writing by the Licensors and the Licensee. The
license fee as most recently agreed shall always be in force and the
Licensee shall pay the Licensors such license fee as provided herein.
4. The Licensee shall pay all charges in respect of water, electricity, power,
maintenance, sanitation, security and all other running and maintenance
expenses in respect of the use of the said presmises. The property tax and
other public dues in respect of the said premises shall be paid by the
Licensors.
5. Upon execution of this Memorandum by the Licensors and the Licensee, the
Licensee shall be entitled to commence work relating to interior office
infrastructure such as furniture, fixtures, lighting, airconditioning etc.
and for this purpose the Licensee can use the said premises from the date
hereof.
6. The licence is personal to the Licensee and the Licensee shall have no
right to sub-let, transfer or part with the possession or occupation of the
said premises or any part thereof in any manner and shall not have any
right to allow anyone else to make use of the licence given to it by the
Licensors.
7. At all times during the continuance of the licence, the Licensee shall keep
the premises in good and substantial and tenantable repair, and all charges
for doing so shall be borne by the Licensee. If however, there are any
major structural repairs or any reconstruction required by reason of any
portion falling down, or being in danger of falling down, the Licensors
shall effect such repairs or make reconstruction at their own cost.
8. The license is given only for carrying out bonafide business activities of
the Licensee. The Licensee shall make use of the said premises carefully
and always keep them neat and clean and all cost for doing so shall be
borne by the Licensee. The Licensee shall not do or cause to be done any
act or thing which may be unlawful or may amount to nuisance or annoyance,
waste or damage to the said premises. If any such damage is, however,
caused to the premises, the same shall be repaired by the Licensee at its
cost.
9. If the Licensee is desirous of making at its own cost any alterations or
constructions in temporary or permanent structure of constructions in the
said premises to meet or suit its needs it may do so with prior written
consent of the Licensors provided there is no permanent damage to the
existing premises.
Licensors shall not be required to spend any amount in respect of such
alterations or reconstructions and the Licensee shall not be entitled to
claim any compensation for such expenses incurred by the Licensee for such
alterations or constructions.
10. The Licensors shall not be liable to the Licensee for any loss or damage
caused to any goods or machinery of the Licensee or the life or property or
invitees in or out of such premises or an the passage permitted to be used
at any time by reason of theft, fire, riot, leakage of water or any act of
God or by any reason whatsoever.
11. In case of any default by the Licensee to abide by terms and conditions of
this lecence including failure to pay the Licence Fee, the Licensors shall
be entitled to give the Licensee a notice of their intention to revoke the
Licence on the expiry of fifteen days from the date of such notice. If the
Licensee fails to remedy the default within the said period of fifteen days
the licence shall be terminated forthwith on the expiry of the said fifteen
days.
12. Nothing contained herein shall create or shall be construed to create any
tenancy right or any interest, estate or rights in respect of the said
premises and the said premises shall continue to be and shall be deemed to
continue to remain in the possession of the Licensors.
13. The Licensee shall be terminated at the end of 31st day of March, 2003.
However, the Licensors may terminate the licence earlier by giving notice
of termination to the Licensee of not less than one hundred and twenty
(120) days.
14. The Licensors or his authorised representatives shall at all times during
continuance of the license be entitled to inspection of the said premises.
15. If at any time, the Licensee is ordered to be wound up under the orders of
a competent court or authority or by passing a resolution for winding up
or permanently closes its business or if any receiver is appointed to take
possession of its properties, the licence shall come to an end forthwith
automatically and the Licensors shall be entitled to forthwith receive the
vacant and peaceful possession of the said premises.
16. In the event of determination or revocation of the licence for any reason
whatsoever, the Licensee shall forthwith hand over to the Licensors the
vacant and peaceful possession of the said premises and the Licensee shall
not be entitled to continue to make use of the said premises and shall
cease to make use of the said premises forthwith without raising any
dispute and shall remove all its goods, machineries and other properties
from the premises and no employee or servant or any agent or representative
of the Licensee shall enter the said premises and the Licensor shall be
free to restain the Licensee and its servants and employees, agents or
representative from entering the said premises and making any use thereof
and the Licensors shall also be entitled to remove from the said premises
any goods or machineries of the Licensee lying in or upon the said premises
if need be without resource to a court of law, and without incurring any
liability whatsoever for any claim or compensation. Upon such determination
or revocation the Licensee shall pay all outstanding charges for water,
electricity etc as is referred to in clause 4 hereof and the Licensors
shall be entitled to recover from the Licensee all such charges remaining
unpaid by the Licensee.
17. This Memorandum of Leave and Licence shall supersede all earlier
understandings, written or otherwise, between the Licensors and Licensee
with respect to the license of the said premises.
IN WITNESS WHEREOF the Licensors and Licensee have signed and delivered this
Memorandum the day and year first above written.
Signed and Delivered by the Licensors
Xx. Xxxxx Xxxxxxxx and Xx. Xxxxx
Xxxxxxx ) /s/ Xxxxx Xxxxxxxx
) /s/ Xxxxx Xxxxxxx
Signed and Delivered by the Licensee
Xxxxx Systems Private Limited by its
Managing Director
Mr. Murali Sanathanam ) /s/ Murali Sanathanam
