DRAFT

MEMORANDUM OF UNDERSTANDING

This Memorandum Of Understanding is executed on this……..day of

………. 2011 by & between Sri Ashish Agarwal. aged about………. years

S/O ……………………………. Working for gain At

…………………………………., hear in after called Owner, the party of the

First part (Which term shall unless excluded by or repugnant to context

include his hairs, Assignees, Administrators and Representatives )

M/S Maa Engineering Pvt Ltd represented by its Director Sri Samar

Kant Jha aged about 41years S/O Sri Jogendra Jha Working for gain At

32, Chattawala Gulli, Room No, 1 st Floor, Kolkata-700001 hear in after

called Leasee ,the party of the Second Part ( Which term shall unless

excluded by or repugnant to context include his hairs, Assignees,

Administrators and Representatives)

Whereas first party of this MoU is absolute owner of 2 ( Two) Crushers

and lease holder of a mine situated at Bolangir, orissa and desires of

Lease out the one (new) crushing plant and mining to the party of the

Second part more particularly described in schedule herein below and

approached the parties of the second part for the purpose .

AND WHEREAS the parties of the second part have agreed to the
proposal of the party of the first part on the terms & condition stated
herein below

1. That initial period of this MoU will be 3 (Three) years from the date
of execution of these presents.
2. That approximate liability of the plant of Rs 105.00 Lacs as on
cutoff date more particularly mentioned in the schedule herein
below will be paid off directly in monthly installments by the
second party during period of the MoU i.e 36 months from the date
of execution of these presents.
3. That The Second party will also pay a sum of Rs XXXX/- ( Rs
XXXXX only) diractly to Mrs Leela Agarwal , mother of the owner
as monthly rent under this MoU.
4. That the Second party will also pay a lump sum amount of Rs
XXXX/- (Rs XXXX Only) Mrs Leela Agarwal at the end of the period
of this MoU.
5. It is specially agreed by and between the party that this MoU will
empower the second party to hold the right to mine of quarry plant
and operate one crushing plant Marked ‘new’ along with
uninterrupted and exclusive right to use all other properties,
machineries, equipments and rights & properties appurtenant to
the plant with an obligation to provide specified quantity of quarry
lumps to the another crusher Markd ‘old’ on payment of cost of
material in advance on regular basis.
6. It is also agreed that Second party will undertake all repairs of the
crushing plant ‘old’ to make it operational at the cost of first party
and thereafter first party will take care of management and
operational expenses.
7. It is also agreed that Second party will not use one of the room out
of 8 rooms as the same will used as site office by the first party.
 8. It is also agreed that Second party will not have any other right /
interest / business and share/stake / royalty on the crusher unit
–
‘old’ save and except to provide quarry lumps on cost basis (ex-
mine).
9. It is also agreed that the stock of finished and unfinished material
will be passed on to the Second party based on cut off date and all
sale proceeds and cost will be on their account during the period of
MoU.
10. It is also agreed that in case of any default in payment of
installment of liabilities and monthly rent this agreement shall
empower the first party to terminate this arrangement and take
back the possession of quarry & crushing plants with other
property by giving one months notice to the Second party and
second party will do the all needful to effect restoration of MoU and
/or handing over the khash possession of property to the first
party by meeting the all liability if any remains due on account
second party.
11. It is also agreed that Second party will undertake it’s obligation to
start the work based on the facts, figures and cost sheet stated in
the separate schedules which are integral part of this MoU and in
case any disagreement and / or difficulty to perform is found with
actual operation, the second party shall have right to withdraw its
involvement from operation site and/ or terminate this MoU with
due notice to the first party.
12. It is also agreed that Second party may use the existing men power
after due approval of the first party.
SCHEDULE- LIABILITIES OF PLANT
Situated at P.O Bolangir, Orissa
Name of Creditors Amount( Rs In Lacs)
 Mr. Gopal Rs. 5.00
 Mr. Arun Rs. 3.50

 SIT ( Mahendra Baboo) Rs.26.00

 LIC Rs. 2.50
 Misc Rs. 4.50
 Bank ( uptill 28.06.10) Rs.59.93
 Bank add after last six month Rs. 4.00
Total Rs.104.93

SCHEDULE- ASSETS OF PLANT

1. 2 (Two) Crushing Plant along with screening , conveyers, control
system, power drive system, feed hopper, ramp for feeding,
stockyard
o Unit No (New) 20x12
o Unit No (old)20x12
2. Land of 25 Acare 79 Decimal
3. Mining Lease for 5 Years having area of 8 acare and 80 decimal.
4. power connection of 90KVA with transformer of 200KVA
5. Unfinished & finished stock of about 100000cft as on 01.01.2011
6. All approvals – pollution certificates , collectors certificates,
explosive use license, Remaining mining approval for 3 years. The
present approval is for 600cum per annum with option to enhance
the limit.
 7. 8 Rooms of 12’x12’ out of which one room for first party for site
office

SCHEDULE- COST SHEET OF PLANT

o Selling price Rs22.00per cft

o Royalty Payable Rs1.38per cft
o Running cost per cft
o Labour
o Electricity
o Maintenances
o Operational Rs10.00 per cft

 That jurisdiction of this agreement shall be Kolkata .

IN WITNESS WHEREOF the parties herein have set and subscribed their

hands and seals to these presents the day, month and year first above

written

Witness

1. SIGNED SEALED &

DELEVERED

BY

Sri……………………………….
2.

SIGNED SEALED &

DELEVERED

1.

BY

Sri……………………………….

2.