-------------------------------------------------- DRAFT FOR ATTORNEY REVIEW ONLY — NOT LEGAL, FINANCIAL, OR TAX ADVICE This document is a structured preparation draft only. Insolvency and Bankruptcy Code 2016 implications, SARFAESI Act applicability, RBI regulated lending compliance, Maharashtra Stamp Act stamp duty on restructuring documents, income tax treatment of interest rate reduction under the Income Tax Act 1961, and any third-party creditor consent requirements must be confirmed with a qualified Indian commercial attorney and tax advisor before this agreement is signed or any restructured terms are implemented. -------------------------------------------------- DEBT RESTRUCTURING AGREEMENT — DRAFT FOR ATTORNEY REVIEW Document Ref: DRA-2026-001 Date of Preparation: June 1 2026 CREDITOR: Sunrise Commercial Finance Pvt Ltd Mumbai Maharashtra India Email: [creditor email] DEBTOR: Arjun Textiles Pvt Ltd Mumbai Maharashtra India Director: Arjun Kapoor Email: [debtor email] 1. RECITALS 1.1 Sunrise Commercial Finance Pvt Ltd is a commercial finance company based in Mumbai Maharashtra India and the Creditor under an existing term loan advanced to Arjun Textiles Pvt Ltd. 1.2 Arjun Textiles Pvt Ltd is a textile manufacturing company based in Mumbai India that has experienced a significant decline in revenue resulting in its inability to meet the monthly installment obligations under the existing term loan. 1.3 Both parties wish to avoid formal default proceedings and any insolvency process by agreeing modified repayment terms that reflect the Debtor's current financial capacity. 1.4 Both parties confirm their mutual intent to document this debt restructuring arrangement through this agreement. 2. DEFINITIONS 2.1 Creditor: Sunrise Commercial Finance Pvt Ltd. 2.2 Debtor: Arjun Textiles Pvt Ltd. 2.3 Original Agreement: The term loan agreement dated January 1 2024 between the Creditor and the Debtor. 2.4 Outstanding Balance: INR 48,50,000 comprising outstanding principal of INR 45,00,000 and accrued unpaid interest of INR 3,50,000 as at the Effective Date. 2.5 Restructured Principal: INR 48,50,000 being the full Outstanding Balance with no haircut applied. 2.6 Restructured Interest Rate: 12 percent per annum simple interest replacing the original rate of 18 percent per annum. 2.7 Forbearance Period: 3 months from the Effective Date during which no repayment installments are due. 2.8 New Repayment Schedule: 24 equal monthly installments of INR 2,25,000 commencing October 1 2026. 2.9 Effective Date: The date on which both parties sign this agreement. 3. ACKNOWLEDGMENT OF EXISTING DEBT 3.1 Arjun Textiles Pvt Ltd acknowledges and confirms that as at the Effective Date the total outstanding amount under the Original Agreement is INR 48,50,000 comprising: Outstanding Principal: INR 45,00,000 Accrued Unpaid Interest: INR 3,50,000 Total Outstanding Balance: INR 48,50,000 3.2 Arjun Textiles Pvt Ltd confirms this acknowledgment is accurate and waives any right to dispute the Outstanding Balance as at the Effective Date. 3.3 Note: The Outstanding Balance figure must be verified against Sunrise Commercial Finance Pvt Ltd's formal loan account statement and confirmed by both parties' legal advisors before this agreement is executed. 4. AGREEMENT TO RESTRUCTURE 4.1 Sunrise Commercial Finance Pvt Ltd agrees to restructure the existing debt on the modified terms set out in this agreement in place of the original repayment obligations under the Original Agreement. 4.2 Arjun Textiles Pvt Ltd agrees to comply fully with all restructured terms and conditions. 4.3 This agreement supersedes the payment obligations of the Original Agreement but does not release or extinguish the underlying debt or any security granted under the Original Agreement. 4.4 The existing first charge over the factory machinery of Arjun Textiles Pvt Ltd registered in favor of Sunrise Commercial Finance Pvt Ltd remains in full force. 4.5 Note: The interaction between this restructuring and the Original Agreement and any other existing creditors of Arjun Textiles Pvt Ltd must be confirmed with a qualified attorney before execution. 5. RESTRUCTURED PRINCIPAL AND INTEREST 5.1 The Restructured Principal is INR 48,50,000 being the full Outstanding Balance with no haircut or write-down applied. 5.2 Interest will accrue on the Restructured Principal at 12 percent per annum simple interest from the Effective Date in place of the original rate of 18 percent per annum. 5.3 Note: The income tax treatment of the interest rate reduction for both parties under the Income Tax Act 1961, and any deemed income or deemed interest implications, must be confirmed with a qualified Indian tax advisor before execution. 6. FORBEARANCE PERIOD 6.1 Sunrise Commercial Finance Pvt Ltd agrees to a forbearance period of 3 months from the Effective Date during which no monthly installment payments are required from Arjun Textiles Pvt Ltd. 6.2 During the forbearance period interest continues to accrue on the Restructured Principal at 12 percent per annum and will be incorporated into the New Repayment Schedule. 6.3 The forbearance is conditional on Arjun Textiles Pvt Ltd complying with all other terms of this agreement including the financial covenants in Section 9. Any breach immediately terminates the forbearance. 6.4 Note: Forbearance provisions in the context of Indian insolvency law under the Insolvency and Bankruptcy Code 2016 and the SARFAESI Act must be confirmed with a qualified Indian attorney. 7. NEW REPAYMENT SCHEDULE 7.1 Following the forbearance period, Arjun Textiles Pvt Ltd must repay the Restructured Principal plus all accrued interest in 24 equal monthly installments of INR 2,25,000 each. 7.2 The first restructured payment is due on October 1 2026. 7.3 Subsequent payments are due on the 1st day of each following month. 7.4 The final payment is due on September 1 2028 by which date all restructured obligations must be fully discharged. Payment 1: October 1 2026 — INR 2,25,000 Payment 2: November 1 2026 — INR 2,25,000 ...continuing monthly... Payment 24: September 1 2028 — INR 2,25,000 Total Restructured Payments: INR 54,00,000 Note: The exact installment breakdown between principal and accrued interest must be confirmed by the Creditor's financial advisor before execution. 7.5 All payments by NEFT to Sunrise Commercial Finance Pvt Ltd's nominated bank account. 8. SECURITY ARRANGEMENTS 8.1 The existing first charge over Arjun Textiles Pvt Ltd's factory machinery registered in favor of Sunrise Commercial Finance Pvt Ltd under the Original Agreement remains in full force and effect throughout the restructuring period. 8.2 Note: Confirmation that the existing charge registration under the Companies Act 2013 remains valid and perfected must be obtained from a qualified Indian attorney before this agreement is executed. 9. FINANCIAL COVENANTS 9.1 Throughout the restructuring period Arjun Textiles Pvt Ltd must: 1. Maintain minimum monthly revenue of INR 20,00,000. 2. Not incur any additional borrowing or create any new security interest without the prior written consent of Sunrise Commercial Finance Pvt Ltd. 3. Not declare or pay any dividend or make any distribution to shareholders. 4. Provide Sunrise Commercial Finance Pvt Ltd with monthly management accounts within 15 days of each month end. 5. Promptly notify Sunrise Commercial Finance Pvt Ltd of any material adverse change in its financial position or business. 10. CONDUCT RESTRICTIONS 10.1 During the restructuring period Arjun Textiles Pvt Ltd must not dispose of any material asset including the factory machinery subject to the existing charge without the prior written consent of Sunrise Commercial Finance Pvt Ltd. 10.2 Arjun Textiles Pvt Ltd must maintain adequate insurance on all assets subject to the existing charge. 10.3 Arjun Textiles Pvt Ltd must not make any related-party payments or director withdrawals beyond agreed salary levels without the prior written consent of Sunrise Commercial Finance Pvt Ltd. 11. DEFAULT AND ACCELERATION 11.1 A default occurs if: 1. Any restructured installment remains unpaid for more than 15 days after formal written demand. 2. The minimum monthly revenue covenant of INR 20,00,000 is breached and not remedied within 30 days of written notice. 3. Arjun Textiles Pvt Ltd incurs additional borrowing without consent. 4. Arjun Textiles Pvt Ltd becomes subject to insolvency proceedings under the Insolvency and Bankruptcy Code 2016. 5. Any material misrepresentation is made by Arjun Textiles Pvt Ltd. 11.2 Upon default all forbearance concessions and interest rate reductions are immediately withdrawn. Sunrise Commercial Finance Pvt Ltd may demand immediate repayment of the full outstanding balance at the original interest rate of 18 percent per annum from the date of default and may enforce the existing charge over the factory machinery. 12. COSTS AND EXPENSES 12.1 Arjun Textiles Pvt Ltd must bear all reasonable legal and professional costs incurred by Sunrise Commercial Finance Pvt Ltd in negotiating and documenting this restructuring, payable within 14 days of a written costs statement. 13. CONFIDENTIALITY 13.1 Both parties agree to keep the existence and terms of this restructuring arrangement strictly confidential for 2 years after termination except where required by law, regulation, or professional advisors. 14. TAX NOTE 14.1 Note: Income tax treatment of the interest rate reduction under the Income Tax Act 1961, Maharashtra Stamp Act stamp duty payable on this restructuring agreement, GST implications of any charges or fees, and the accounting treatment of the restructured debt must be confirmed with a qualified Indian tax advisor before execution. 15. GOVERNING LAW AND DISPUTES 15.1 Laws of Maharashtra India govern this agreement. 15.2 Disputes proceed through direct negotiation then binding arbitration in Mumbai. SIGNATURE BLOCK: Note: Both parties must have this agreement reviewed by a qualified Indian commercial attorney and tax advisor before signing. Insolvency and Bankruptcy Code 2016 implications, SARFAESI Act applicability, RBI regulatory compliance, Companies Act 2013 charge registration, Maharashtra Stamp Act stamp duty, and income tax treatment of the restructuring must all be confirmed before execution. Sunrise Commercial Finance Pvt Ltd (Creditor) Signature: ________________ Name: ____________________ Title: ___________________ Date: ____________________ Arjun Textiles Pvt Ltd (Debtor) Signature: ________________ Name: Arjun Kapoor Title: Director Date: ____________________ -------------------------------------------------- This Debt Restructuring Agreement draft was generated by an AI drafting tool as a structured preparation and documentation aid only. It does not constitute legal, financial, or tax advice. Always have this document reviewed by a qualified attorney and tax advisor before either party signs or any restructured terms are implemented. --------------------------------------------------