LET Integrated Engineering Services

PS No. 996416 6th August 2010

Mr. SANDEEP KUMAR SRIVASTAVA

Larsen & Toubro Limited
Bangalore

THRU:SS/KK
Dear Sandeep,

Annual Performance Review - 2009-10 and

Restructuring & Revision of Compensation

The Performance Appraisal process for the year 2009-10 has been completed. You have
been rated as a Vital Contributor, relative to your peers, for having contributed to your
Department's performance. The Management appreciates your contribution.

We trust that you would have discussed with your Immediate Superior, ways and means to
further enhance your performance in the coming years above the current levels, to help your
Department achieve its objectives.

The Management is pleased to announce the following:

Your compensation has been restructured and revised with effect from 1st July 2010. Annual
Performance Linked Reward and the details of those elements of your compensation that
have been revised are as under:

A.Performance Linked Reward (PLR)

Rs. 43000/- for the period from April 2009 to March 2010
Please note that the above PLR amount is inclusive of bonus payable, if any, for the year
2009-10 under the Payment of Bonus Act, 1965 including any amendments thereto.

B.Basic Salary and Fixed Additional Dearness Allowance (FADA) I Supplementary

HRA (SHRA)

Your Basic Salary after restructuring and increment effective 1st July, 2010, shall be
Rs.16270/- per month. Consequently, FADA / SHRA as applicable to you stands
withdrawn effective 1st July, 2010

L& T Integrated Engineering Services. Larsen & Toubro Limited Registered Office:
Bellary Road. Byatarayanapura. Bangalore — 560 092. India L& T House. N. M. Marg
Tel. (Board) : +91.80-66203333 Fax: +91-80-66203456 www.Lnties.com Ballard Estate.
Mumbai 400 001. India

Mr. SANDEEP KUMAR SRIVASTAVA

C. Introduction of FlexiPav 1

It has been decided to withdraw the following allowances effective 1 July, 2010:

"E" Cadre

1.HRA
2.Conveyance
3.Medical Allowance
4.Education Allowance
5.Flexipay (Monthly Special Allowance)
6.Telephone Allowance (for E2 & E3)
7.F-LISA (for E2 & E3)
8.H-LISA
9.House Up Keep Allowance (for E3)
Consequent to the above, FlexiPayl will be paid to you effective 1St July, 2010. The
amount of FlexiPayl will depend upon the status of benefits granted to you / availed by
you.

The standard amount of FlexiPayl payable to employees who have not been granted
any reimbursement towards use of a vehicle and who do not reside in a Company
Accommodation shall be Rs. 8190/- per month. If any employee has been granted these
benefits, the amount shall be lower.

D.Recovery of Furniture Loan

F-LISA was introduced in lieu of Furniture loan with effect from 1st April 2005. However,
the loan availed in the past still continues for a few employees.

It has now been decided to recover the outstanding loan, if any, from the salary on a
monthly basis effective July 2010 to be completed by March 2011.

The amount of FlexiPayl will be reduced to the extent of F-LISA applicable for the grade,
pending the full recovery of the loan, till March 2011.

In case of early repayment of the loan in full, FlexiPayl will be paid in full from the
following month.

E.Introduction of FlexiPay 2

It has been decided to merge the following allowances (which shall stand withdrawn) into
FlexiPay2 effective 1st July, 2010:

1.Special Performance Pay (SPP)

2.Special Pay
3.Additional Pay

Consequent to the above, it has been decided that FlexiPay2 payable to you will be fixed
at Rs.8700/- per month, effective 1st July, 2010.
Mr. SANDEEP KUMAR SRIVASTAVA
F.Additional Allowance

Additional Allowance payable to you shall be Rs.3000/- per month for the period from 1st
July 2010 to 30th June 2011.

G.FlexiPay System

The total of FlexiPayl, FlexiPay2 and Additional Allowance will be available to you for
allocating amongst heads like HRA, Conveyance, Medical, etc. as is being done at
present.

All other allowances which have not been specifically amended shall continue without
change.

Only Basic Salary shall attract retiral benefits and other allowances/payments shall not do
so.

Tax liability, if any, on the above payments will be to your account.

Total confidentiality of the amounts awarded is very important. Disclosure of the same will
be treated as breach of trust and will be viewed seriously.

All other terms and conditions of your existing employment shall continue to be in force and
effect.

We wish you success in your efforts to achieve the objectives assigned to you.

Sincerely,
for LARSEN & TOUBRO LIMITED

Jerry Koshy Vaidyan

Manager - HR
Mumbai 400 001. India