Document:

exv10w1

 

EXHIBIT 10.1

July 7, 2005

India Globalization Capital, Inc.

4336 Montgomery Ave.

Bethesda, Maryland 20814

Ferris, Baker Watts, Inc.

100 Light Street, 8th Floor

Baltimore, MD 21202

Re: INITIAL PUBLIC OFFERING

Ladies and Gentlemen:

This letter amends and supercedes my letter to you of May 5, 2005. The undersigned stockholder,
officer and/or director of India Globalization Capital, Inc. (“Company”), in consideration of
Ferris, Baker Watts, Inc. (“FBW”) entering into a letter of intent (“Letter of Intent”) to
underwrite an initial public offering of the securities of the Company (“IPO”) and embarking on the
IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in
paragraph 11 hereof):

1. If the Company solicits approval of its stockholders of a Business Combination, the undersigned
will vote all shares of Common Stock of the Company owned by the undersigned, whether Insider
Shares, IPO Shares or shares purchased after the IPO in accordance with the majority of the votes
cast by the holders of the IPO Shares.

2. In the event that the Company fails to consummate a Business Combination within 18 months from
the effective date (“Effective Date”) of the registration statement relating to the IPO (or 24
months under the circumstances described in the prospectus relating to the IPO), the undersigned
will take all reasonable actions within his power to cause the Company to liquidate as soon as
reasonably practicable. The undersigned hereby waives any and all right, title, interest or claim
of any kind in or to any distribution of the Trust Fund (as defined in the Letter of Intent) as a
result of such liquidation with respect to his Insider Shares (“Claim”) and hereby waives any Claim
the undersigned may have in the future as a result of, or arising out of, any contracts or
agreements with the Company and will not seek recourse against the Trust Fund for any reason
whatsoever. The undersigned agrees to indemnify and hold harmless the Company, pro rata with the
other officers and directors of the Company based on the number of Insider Shares held by each such
individual, against any and all loss, liability, claims, damage and expense whatsoever (including,
but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim
whatsoever) which the Company may become subject as a result of any claim by any vendor or other
person who is owed money by the Company for services rendered or products sold, or by any target
business, but only to the extent necessary to ensure that such loss, liability, claim, damage or
expense does not reduce the amount in the Trust Fund. The foregoing sentence is not for the
benefit of any third party creditors of the Company.

 

 

India Globalization Capital, Inc.

Ferris, Baker Watts, Inc.

July 7, 2005

Page 2

3. In order to minimize potential conflicts of interest which may arise from multiple affiliations,
the undersigned agrees to present to the Company for its consideration, prior to presentation to
any other person or entity, any suitable opportunity to acquire an operating business whose primary
operations are located in India, until the earlier of the consummation by the Company of a Business
Combination, the liquidation of the Company or until such time as the undersigned ceases to be an
officer or director of the Company, subject to any pre-existing fiduciary obligations the
undersigned might have.

4. The undersigned acknowledges and agrees that the Company will not consummate any Business
Combination which involves a company which is affiliated with any of the Insiders unless the
Company obtains an opinion from an independent investment banking firm reasonably acceptable to FBW
that the business combination is fair to the Company’s stockholders from a financial perspective.

5. Neither the undersigned, any member of the family of the undersigned, nor any Affiliate of the
undersigned will be entitled to receive and will not accept any compensation for services rendered
to the Company prior to the consummation of the Business Combination; provided that commencing on
the Effective Date, Integrated Global Network, LLC (“Related Party”), shall be allowed to charge
the Company $7,500 per month, to compensate it for the Company’s use of Related Party’s offices,
utilities and personnel. Related Party and the undersigned shall also be entitled to reimbursement
from the Company for their respective out-of-pocket expenses incurred in connection with seeking
and consummating a Business Combination.

6. Neither the undersigned, nor any member of the family of the undersigned, nor any Affiliate of
the undersigned will be entitled to receive or accept a finder’s fee or any other compensation in
the event the undersigned, any member of the family of the undersigned or any Affiliate of the
undersigned originates a Business Combination.

7. The undersigned will escrow his/her Insider Shares for period commencing on the Effective Date
and ending six months after the consummation of a Business Combination, subject to the terms of a
Stock Escrow Agreement which the Company will enter into with the undersigned and an escrow agent
acceptable to the Company.

8. The undersigned agrees to be Chairman, CEO and President of the Company for the term for which
he is appointed. The undersigned’s biographical information furnished to the Company and FBW, and
attached hereto as Exhibit A is true and accurate in all material respects, does not omit any
material information with respect to the undersigned’s background and contains all of the
information required to be disclosed pursuant to Section 401 of Regulation S-K, promulgated under
the Securities Act of 1933. The undersigned’s Questionnaire furnished to the Company and FBW and
annexed hereto as Exhibit B is true and correct in all material respects. The undersigned
represents and warrants that:

 

 

India
Globalization Capital, Inc.

Ferris, Baker Watts, Inc.

July 7, 2005

Page 3

(a) he/she is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act or practice
relating to the offering of securities in any jurisdiction;

(b) he/she has never been convicted of or pleaded guilty to any crime (i) involving any fraud or
(ii) relating to any financial transaction or handling of funds of another person, or (iii)
pertaining to any dealings in any securities and he/she is not currently a defendant in any such
criminal proceeding; and

(c) he/she has never been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or registration denied,
suspended or revoked.

9. The undersigned has full right and power, without violating any agreement by which he is bound,
to enter into this letter agreement and to serve as Chairman, CEO and President of the Company.

10. The undersigned authorizes any employer, financial institution, or consumer credit reporting
agency to release to FBW and its legal representatives or agents (including any investigative
search firm retained by FBW) any information they may have about the undersigned’s background and
finances (“Information”). Neither FBW nor its agents shall be violating the undersigned’s right of
privacy in any manner in requesting and obtaining the Information and the undersigned hereby
releases them from liability for any damage whatsoever in that connection.

11. As used herein, (i) a “Business Combination” shall mean an acquisition by merger, capital stock
exchange, asset or stock acquisition, reorganization or otherwise, of an operating business whose
primary operations are in India and selected by the Company; and

(ii) “Insiders” shall mean all officers, directors and stockholders of the Company immediately
prior to the IPO; (iii) “Insider Shares” shall mean all of the shares of Common Stock of the
Company owned by an Insider prior to the IPO; and (iv) “IPO Shares” shall mean the shares of Common
Stock issued in the Company’s IPO.

 

	 	 	 	 	 
	 	 	 
	 	/s/ Ram Mukunda
 	 
	 	Signatureexv10w2

 

EXHIBIT 10.2

July 7, 2005

India Globalization Capital, Inc.

4336 Montgomery Ave.

Bethesda, Maryland 20814

Ferris, Baker Watts, Inc.

100 Light Street, 8th Floor

Baltimore, MD 21202

Re: INITIAL PUBLIC OFFERING

Ladies and Gentlemen:

This letter amends and supercedes my letter to you of May 11, 2005. The undersigned stockholder,
officer and/or director of India Globalization Capital, Inc. (“Company”), in consideration of
Ferris, Baker Watts, Inc. (“FBW”) entering into a letter of intent (“Letter of Intent”) to
underwrite an initial public offering of the securities of the Company (“IPO”) and embarking on the
IPO process, hereby agrees as follows (certain capitalized terms used herein are defined in
paragraph 11 hereof):

1. If the Company solicits approval of its stockholders of a Business Combination, the undersigned
will vote all shares of Common Stock of the Company owned by the undersigned, whether Insider
Shares, IPO Shares or shares purchased after the IPO in accordance with the majority of the votes
cast by the holders of the IPO Shares.

2. In the event that the Company fails to consummate a Business Combination within 18 months from
the effective date (“Effective Date”) of the registration statement relating to the IPO (or 24
months under the circumstances described in the prospectus relating to the IPO), the undersigned
will take all reasonable actions within his power to cause the Company to liquidate as soon as
reasonably practicable. The undersigned hereby waives any and all right, title, interest or claim
of any kind in or to any distribution of the Trust Fund (as defined in the Letter of Intent) as a
result of such liquidation with respect to his Insider Shares (“Claim”) and hereby waives any Claim
the undersigned may have in the future as a result of, or arising out of, any contracts or
agreements with the Company and will not seek recourse against the Trust Fund for any reason
whatsoever. The undersigned agrees to indemnify and hold harmless the Company, pro rata with the
other officers and directors of the Company based on the number of Insider Shares held by each such
individual, against any and all loss, liability, claims, damage and expense whatsoever (including,
but not limited to, any and all legal or other expenses reasonably incurred in investigating,
preparing or defending against any litigation, whether pending or threatened, or any claim
whatsoever) which the Company may become subject as a result of any claim by any vendor or other
person who is owed money by the Company for services rendered or products sold, or by any target
business, but only to the extent necessary to ensure that such loss, liability, claim, damage or
expense does not reduce the amount in the Trust Fund. The foregoing sentence is not for the
benefit of any third party creditors of the Company.

 

 

India Globalization Capital, Inc.

Ferris, Baker Watts, Inc.

July 7, 2005

Page 2

3. In order to minimize potential conflicts of interest which may arise from multiple affiliations,
the undersigned agrees to present to the Company for its consideration, prior to presentation to
any other person or entity, any suitable opportunity to acquire an operating business whose primary
operations are located in India, until the earlier of the consummation by the Company of a Business
Combination, the liquidation of the Company or until such time as the undersigned ceases to be an
officer or director of the Company, subject to any pre-existing fiduciary obligations the
undersigned might have.

4. The undersigned acknowledges and agrees that the Company will not consummate any Business
Combination which involves a company which is affiliated with any of the Insiders unless the
Company obtains an opinion from an independent investment banking firm reasonably acceptable to FBW
that the business combination is fair to the Company’s stockholders from a financial perspective.

5. Neither the undersigned, any member of the family of the undersigned, nor any Affiliate of the
undersigned will be entitled to receive and will not accept any compensation for services rendered
to the Company prior to the consummation of the Business Combination; provided that commencing on
the Effective Date, Integrated Global Network, LLC (“Related Party”), shall be allowed to charge
the Company $7,500 per month, to compensate it for the Company’s use of Related Party’s offices,
utilities and personnel. Related Party and the undersigned shall also be entitled to reimbursement
from the Company for their respective out-of-pocket expenses incurred in connection with seeking
and consummating a Business Combination.

6. Neither the undersigned, nor any member of the family of the undersigned, nor any Affiliate of
the undersigned will be entitled to receive or accept a finder’s fee or any other compensation in
the event the undersigned, any member of the family of the undersigned or any Affiliate of the
undersigned originates a Business Combination.

7. The undersigned will escrow his/her Insider Shares for period commencing on the Effective Date
and ending six months after the consummation of a Business Combination, subject to the terms of a
Stock Escrow Agreement which the Company will enter into with the undersigned and an escrow agent
acceptable to the Company.

8. The undersigned agrees to be CFO of the Company for the term for which he is appointed. The
undersigned’s biographical information furnished to the Company and FBW, and attached hereto as
Exhibit A is true and accurate in all material respects, does not omit any material information
with respect to the undersigned’s background and contains all of the information required to be
disclosed pursuant to Section 401 of Regulation S-K, promulgated under the Securities Act of 1933.
The undersigned’s Questionnaire furnished to the Company and FBW and annexed hereto as Exhibit B is
true and correct in all material respects. The undersigned represents and warrants that:

 

 

India Globalization Capital, Inc.

Ferris, Baker Watts, Inc.

July 7, 2005

Page 23

(a) he/she is not subject to or a respondent in any legal action for, any injunction,
cease-and-desist order or order or stipulation to desist or refrain from any act or practice
relating to the offering of securities in any jurisdiction;

(b) he/she has never been convicted of or pleaded guilty to any crime (i) involving any fraud or
(ii) relating to any financial transaction or handling of funds of another person, or (iii)
pertaining to any dealings in any securities and he/she is not currently a defendant in any such
criminal proceeding; and

(c) he/she has never been suspended or expelled from membership in any securities or commodities
exchange or association or had a securities or commodities license or registration denied,
suspended or revoked.

9. The undersigned has full right and power, without violating any agreement by which he is bound,
to enter into this letter agreement and to serve as CFO of the Company.

10. The undersigned authorizes any employer, financial institution, or consumer credit reporting
agency to release to FBW and its legal representatives or agents (including any investigative
search firm retained by FBW) any information they may have about the undersigned’s background and
finances (“Information”). Neither FBW nor its agents shall be violating the undersigned’s right of
privacy in any manner in requesting and obtaining the Information and the undersigned hereby
releases them from liability for any damage whatsoever in that connection.

11. As used herein, (i) a “Business Combination” shall mean an acquisition by merger, capital stock
exchange, asset or stock acquisition, reorganization or otherwise, of an operating business whose
primary operations are in India and selected by the Company; and

(ii) “Insiders” shall mean all officers, directors and stockholders of the Company immediately
prior to the IPO; (iii) “Insider Shares” shall mean all of the shares of Common Stock of the
Company owned by an Insider prior to the IPO; and (iv) “IPO Shares” shall mean the shares of Common
Stock issued in the Company’s IPO.

 

	 	 	 	 	 
	 	 	 
	 	/s/ John Cherin
 	 
	 	Signature

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