Document:

exv10w4

 

Exhibit 10.4

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS COVERED BY AN
EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OR
REGULATION S OF THE SECURITIES AND EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO
THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

INDIA GLOBALIZATION CAPITAL, INC.

UNSECURED PROMISSORY NOTE

			
	$3,000,000.00
	 	February 5, 2007

Bethesda, MD

     1. Principal and Interest.

     1.1 India Globalization Capital, Inc., a Maryland corporation (the “Company”), for value
received, hereby promises to pay to the order of Oliveira Capital, LLC or its assigns (the
“Investor” or the “Holder”) the amount of Three Million Dollars ($3,000,000) plus interest, as set
forth hereinafter.

     1.2 This Promissory Note (the “Note”) shall bear interest from the date of issuance of this
Note until paid in full at a rate equal to eight percent (8%) per annum. This Note, including all
interest earned on the principal amount of this Note, shall be due and payable on the earlier of
(a) one year from the date of the issuance of this Note or (b) the date of consummation of a
Business Combination (the “Due Date”). A “Business Combination” means an acquisition by merger,
capital stock exchange, asset or stock acquisition, reorganization or otherwise by the Company of
an operating business whose primary operations are in India .

     1.3 Payments of both principal and interest are to be made at the address of the Holder set
forth in Section 6 below or at such other place in the United States as the Holder shall designate
to the Company in writing, in lawful money of the United Sates of America. Interest on this Note
shall be computed on the basis of a 365-day year and actual days elapsed.

     1.4 This Note is issued pursuant to that certain Note and Warrant Purchase Agreement dated of
even date herewith between the Company and Holder (the “Purchase Agreement”). The provisions of
this Note are a statement of the rights of the Holder and the conditions to which this Note is
subject and to which the Holder, by the acceptance of this Note, agrees.

     2. Prepayment. Notwithstanding anything else set forth herein, the Company may
pre-pay this Note in whole or in part.

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     3. Use of Proceeds. To fund the investment by the Company in convertible debentures
(the “Debentures”) of MBL, Limited (“MBL”) as a precursor to a potential acquisition of MBL by the
Company.

     4.  Source of Repayment.

     4.1 As set forth in greater detail in the Company’s prospectus, the Company has deposited the
bulk of its funds in a trust account (the “Trust Fund”) which may be released to the Company only
in the event of the consummation of a Business Combination or a liquidation of the Company. The
Holder shall not be entitled to repayment of the Note out of the Trust Fund and shall be required
to waive any right to payment out of the Trust Fund.

     4.2 As security for the prompt repayment of all sums due hereunder, the Company has granted to
the Holder a continuing first priority security interest in and to all of the right, title and
interest of Pledgor in, to and under (i) the Debentures, (ii) all certificates evidencing the
Debentures (“Securities”), and (iii) and any and all proceeds therefrom (“Collateral”). In the
event that the Note matures prior to the consummation of a Business Combination the sole recourse
of the Holder will be against the Collateral.

     4.3 The term “Securities” as used herein shall also mean and include, without limitation, any
securities into which the Securities are converted or for which they are exchanged, any stock
dividend and/or distribution or exchange of stock in connection with any reorganization,
recapitalization, reclassification, or increase or reduction of capital, if any, to which the
Company shall become entitled for any reason whatsoever as an addition to, in substitution for, or
in exchange for any portion of the aforesaid Securities.  

     5. Assignment. Subject to the restrictions on transfer described in Section                     
hereof, the rights and obligations of the Company and the Holder of this Note shall be binding upon
and benefit the successors, assigns, heirs, administrators and transferees of the parties.
Effective upon any such assignment, the person or entity to whom such rights, interests and
obligations were assigned shall have and exercise all of the Holder’s rights, interests and
obligations hereunder as if such person or entity were the original Holder of this Note.

     6. Waiver and Amendment. Any provision of this Note may be amended, waived or
modified (either generally or in a particular instance, either retroactively or prospectively, and
either for a specified period of time or indefinitely), upon the written consent of the Company and
of the Investors holding a majority of the aggregate principal amount of the Unsecured Convertible
Promissory Notes which are the subject of the Purchase Agreement.

     7. Transfer of This Note or Securities Issuable on Conversion Hereof. With respect to
any offer, sale or other disposition of this Note or securities into which this Note may be
converted, the Holder will give written notice to the Company prior thereto, describing briefly the
manner thereof. Unless the Company reasonably determines that such transfer would violate
applicable securities laws, or that such transfer would adversely affect the Company’s ability to
account for future transactions to which it is a party as a pooling of interests, and notifies the
Holder thereof within ten (10) business days after receiving notice of the transfer, the Holder may
effect such transfer. Each Note thus transferred and each certificate representing the

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securities thus transferred shall bear a legend as to the applicable restrictions on
transferability in order to ensure compliance with the Securities Act, unless in the opinion of
counsel for the Company such legend is not required in order to ensure compliance with the
Securities Act. The Company may issue stop transfer instructions to its transfer agent in
connection with such restrictions.

     8. Notices. Any notice, request, other communication or payment required or permitted
hereunder shall be in writing and shall be deemed to have been given upon delivery if personally
delivered, or five (5) business days after deposit if deposited in the United States mail for
mailing by certified mail, postage prepaid, and addressed as follows:

     If to Investor: at the address indicated on the signature page hereto.

	 	 	 	 	 
	 

	 	If to Company:
	 	India Globalization Capital, Inc.
	 

	 	 	 	4336 Montgomery Avenue
	 

	 	 	 	Bethesda, MD 20814
	 

	 	 	 	Attention: Ram Mukunda
	 
	 	 	 	 
	 

	 	 	 	And
	 
	 	 	 	 
	 

	 	 	 	PO Box 60642
	 

	 	 	 	Potomac, MD 20859
	 
	 

	 	 	 	Telecopier: (240) 465-0273
	 

	 	 	 	Phone: (301) 983-0998
	 

	 	 	 	Email: ram@indiaglobal.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Seyfarth Shaw LLP
	 

	 	 	 	815 Connecticut Avenue, N.W., Suite 500
	 

	 	 	 	Washington, D.C. 20006
	 

	 	 	 	Attention: Stanley S. Jutkowitz
	 

	 	 	 	Telecopier: (202) 828-5393
	 

	 	 	 	Phone: (202) 828-3568

Each of the above addressees may change its address for purposes of this Section 6 by giving to the
other addressee notice of such new address in conformance with this Section 6.

     9. Loss, Theft or Destruction of Note. Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft or destruction of this Note and of indemnity or
security reasonably satisfactory to it, the Company will make and deliver a new Note which shall
carry the same rights to interest (unpaid and to accrue) carried by this Note, stating that such
Note is issued in replacement of this Note, making reference to the original date of issuance of
this Note (and any successors hereto) and dated as of such cancellation, in lieu of this Note.

     10. Usury Disclosure. Regardless of any provision contained in this Note, it is
expressly stipulated and agreed that the intent of the Holder and the Company is to comply at all
times with all usury and other laws relating to this Note. If the laws of the State of Maryland

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would now or hereafter render usurious, or are revised, repealed or judicially interpreted so
as to render usurious, the indebtedness evidenced by this Note, or if any prepayment by the Company
results in the Company’s having paid any interest in excess of that permitted by law, then it is
the Holder’s and the Company’s express intent that all excess amounts theretofore collected by the
Holder be credited to the principal balance of this Note (or, if this Note has been paid in full,
refunded to the Company), and the provisions of this Note immediately be deemed reformed and the
amounts therefor collectible hereunder reduced, without the necessity of execution of any new
document, so as to comply with the then applicable law, but so as to permit the recovery of the
fullest amount otherwise called for hereunder.

     11. Accredited Investor. The Holder represents and warrants that he/she/it is an
“accredited investor” within the meaning of the Securities and Exchange Rule 501 of Regulation D,
as presently in effect.

     12. Governing Law. This Note is being delivered in and for all purposes shall be
construed in accordance with and governed by the laws of the State of Maryland , without regard to
the conflicts of laws provisions thereof.

     13. Issue Date. The provisions of this Note shall be construed and shall be given
effect in all respects as if this Note had been issued and delivered by the Company on the earlier
of the date hereof or the date of issuance of any Note for which this Note is issued in
replacement. This Note shall be binding upon any successors or assigns of the Company.

     14. Heading; References. All headings used herein are used for convenience only and
shall not be used to construe or interpret this Note. Except as otherwise indicated, all
references herein to Sections refer to Sections hereof.

     15. Waiver by the Company. The Company hereby waives demand, notice, presentment,
protest and notice of dishonor.

     16. Delays. No delay by the Holder in exercising any power or right hereunder shall
operate as a waiver of any power or right.

     17. Severability. If one or more provisions of this Note are held to be unenforceable
under applicable law, such provision shall be excluded from this Note and the balance of the Note
shall be interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms.

     18. No Impairment. The Company will not, by any voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed hereunder by
the Company, but will at all times in good faith assist in the carrying out of all the provisions
of this Note and in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder of this Note against impairment.

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     IN WITNESS WHEREOF, [Name of Corporation] has caused this Note to be executed in its corporate
name and this Note to be dated, issued and delivered, all on the date first above written.

	 	 	 	 	 	 	 
	 	 	INDIA GLOBALIZATION CAPITAL, INC.	 	 
	 	 	a Maryland corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Ram Mukunda	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	Print Name
   Ram Mukunda	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title	 	 President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Accepted and Agreed to:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	INITIAL HOLDER:	 	 
	 
	 	 	 	 	 	 
	 
	 	 Oliveira	 	Capital  LLC	 	 
	 	 	 	 	 
	 	 	Print Name of Holder	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 /s/ Steven M. Oliveira	 	 
	 

	 	 	 	 	 	 
	 	 	(Signature)	 	 
	 	 	 	 	 
	 
	 	 Steven M. Oliveira	 	 
	 	 	 	 	 
	 	 	(Print Name, if signing on behalf of entity)	 	 
	 
	 	 	 	 	 	 
	 
	 	President	 	 	 	 
	 	 	 	 	 
	 	 	Title (if applicable)	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

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Exhibit 10.5

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF, AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED UNLESS COVERED BY AN
EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OR
REGULATION S OF THE SECURITIES AND EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO
THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

WARRANT TO PURCHASE SHARES

OF

COMMON STOCK OF

INDIA GLOBALIZATION CAPITAL, INC.

     This certifies that, for good and valuable consideration, receipt and sufficiency of which are
hereby acknowledged, OLIVEIRA CAPITAL, LLC or its registered assigns (the “Holder”), is entitled,
subject to the terms and conditions set forth below and in the Note and Warrant Purchase Agreement
dated as of February 5, 2007 (the “Purchase Agreement”) by and between the Holder and India
Globalization Capital, Inc., a Maryland corporation (the “Company”) to purchase from the Company,
shares of the Company’s Common Stock (the “ Stock”) as more particularly set forth in paragraph 2
hereof. The term “Warrant” as used herein shall mean this Warrant, and any warrants delivered in
substitution or exchange therefor as provided herein.

     1. Term of Warrant. Subject to the terms and conditions set forth herein, this
Warrant shall be exercisable, in whole or in part, during the term commencing on the closing of a
Business Combination Financing as defined in that certain promissory note made by the Company to
the Holder (the “Note”) and ending on the fifth anniversary of the date hereof (the “Exercise
Period”).

     2. Number of Shares, Exercise Price. The Warrant shall be exercisable for:

     (a) Four hundred twenty five
thousand 425,000 shares of Common Stock.

     (b) The exercise price per share (the “Exercise Price”) shall be $5.00.

     (c) The Shares of Common Stock for which this Warrant is exercisable and which are issued
upon conversion of this Warrant shall hereinafter be referred to collectively as the “Warrant
Shares.”

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     3. Exercise of Warrant.

     (a) Exercise. This Warrant may be exercised in whole or in part by the Holder during
the Exercise Period by (i) the surrender of this Warrant to the Company, with the Notice of
Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the
Company (or such other office or agency of the Company as it may designate by notice in writing to
the Holder at the address of the Holder appearing on the books of the Company), and (ii) the
delivery of payment to the Company, for the account of the Company, by (A) cash, (B) wire transfer
of immediately available funds to a bank account specified by the Company, (C) certified or bank
cashier’s check, (D) the cancellation by the Holder of indebtedness or other obligations of the
Company to the Holder, (E) a combination of any of the above, of the Exercise Price for the number
of Warrant Shares specified in the Exercise Form in lawful money of the United States of America or
(F) by surrender of all or a portion of this Warrant for shares of Common Stock to be exercised
under this Agreement and, if applicable, an amended Agreement representing the remaining number of
shares purchasable hereunder, as determined below (“Net Issuance”). If the Holder elects
the Net Issuance method, the Company will issue Common Stock in accordance with the following
formula:

	 	 	 	 	 	 	 	 	 
	 

	 	X
	 	=
	 	Y(A-B)
   A
	 	 

     X = the number of shares of Common Stock to be issued to the Holder.

     Y = the number of shares of Common Stock requested to be
exercised under this Agreement.

     A = the fair market value of one (1) share of Common Stock at
the time of issuance of such shares of Common Stock.

     B = the Exercise Price.

          For purposes of the above calculation, current fair market value of Common Stock shall mean
with respect to each share of Common Stock:

          (i) if the Common Stock is traded on a securities exchange, the fair market value shall
be deemed to be the product of (x) the average of the closing prices over a five (5) day
period ending three days before the day the current fair market value of the securities is
being determined and (y) the number of shares of Common Stock into which each share of
Common Stock is convertible at the time of such exercise; or

          (ii) if the Common Stock is actively traded over-the-counter, the fair market value
shall be deemed to be the product of (x) the average of the closing bid and asked prices
quoted on the NASDAQ system (or similar system) over the five (5) day period ending three
days before the day the current fair market value of the securities is being determined and
(y) the number of shares of Common Stock into which each share of Common Stock is
convertible at the time of such exercise;

          (iii) if at any time the Common Stock is not listed on any securities exchange or
quoted in the NASDAQ National Market or the over-the-counter market, the current fair market
value of Common Stock shall be the product of (x) the highest price per share

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which the Company could obtain from a willing buyer (not a current employee or
director) for shares of Common Stock sold by the Company, from
authorized but unissued shares, as determined in good faith by its Board of Directors and (y) the number of shares
of Common Stock into which each share of Common Stock is convertible at the time of such
exercise, unless the Company shall become subject to a merger, consolidation or other
business combination (“Merger Event”), in which case the fair market value of Common Stock
shall be deemed to be the per share value received by the holders of the Company’s Common
Stock on a common equivalent basis pursuant to such Merger Event.

     (b) Delivery of Stock Certificates. This Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date of its surrender for exercise as
provided above, and the person entitled to receive the Warrant Shares issuable upon such exercise
shall be treated for all purposes as the holder of record of such shares as of the close of
business on such date. As promptly as practicable on or after such date and in any event within
three (3) business days thereafter, the Company at its expense shall issue and deliver to the
person or persons entitled to receive the same, a certificate or certificates for the number of
shares issuable upon such exercise. If the Company fails to deliver the certificate(s) timely, the
Company shall indemnify the Investor for an breakage fees and other damages actually incurred by
Investor solely as a result of the Company’s failure to deliver the certificate(s) timely. In the
event that this Warrant is exercised in part, the Company at its expense will execute and deliver a
new Warrant of like tenor exercisable for the number of shares for which this Warrant may then be
exercised. No adjustments shall be made on Warrant Shares issuable on the exercise of this Warrant
for any cash dividends paid or payable to holders of record of Common Stock prior to the date as of
which the Holder shall be deemed to be the record holder of such Warrant Shares.

     (c) Adjustment. Article 4 (ADJUSTMENTS) of that certain Warrant Agreement (“Warrant
Agreement”) dated effective as of March 3, 2006 between the Company and Continental Stock Transfer
& Trust Company as Warrant Agent is incorporated herein as if set forth in its entirety and as if
(solely for making any required adjustments) this Warrant was one of the Warrants referred to
therein.

     4. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
substance to the Company or, in the case of mutilation, on surrender and cancellation of this
Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new
warrant of like tenor and amount.

     5. Rights as Stockholder. The Holder shall not be entitled to vote or receive
dividends, or be deemed the holder of Common Stock or any other securities of the Company that may
at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein
be construed to confer upon the Holder, as such, any of the rights of a stockholder of the Company,
or any right to vote for the election of directors or upon any matter submitted to stockholders at
any meeting thereof, or to give or withhold consent to any corporate action (whether upon any
recapitalization, issuance of stock, reclassification of stock, change of par value, or change of
stock to no par value, consolidation, merger, conveyance, or otherwise), or to receive

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notice of meetings, or to receive dividends or subscription rights or otherwise until the
Warrant shall have been exercised as provided herein.

     6. Transfer of Warrant.

     (a) Warrant Register. The Company will maintain a register (the “Warrant Register”)
containing the names and addresses of the Holder or Holders. Any Holder of this Warrant or any
portion thereof may change his address as shown on the Warrant Register by written notice to the
Company requesting such change. Any notice or written communication required or permitted to be
given to the Holder may be delivered or given by mail to such Holder as shown on the Warrant
Register and at the address shown on the Warrant Register. Until this Warrant is transferred on
the Warrant Register of the Company, the Company may treat the Holder as shown on the Warrant
Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the
contrary.

     (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent
for the purpose of maintaining the Warrant Register referred to in Section 6(a) hereof, issuing the
Warrant Shares or other securities then issuable upon the exercise of this Warrant, exchanging this
Warrant, replacing this Warrant, or any or all of the foregoing. Thereafter, any such
registration, issuance, exchange, or replacement, as the case may be, shall be made at the office
of such agent.

     (c) Transferability and Nonnegotiability of Warrant. The Holder agrees not to make
any disposition of all or any portion of the Warrants (other than the valid exercise or conversion
thereof in accordance with their respective terms) unless and until:

          (i) There is then in effect a Registration Statement under the Securities Act
covering such proposed disposition, and such disposition is made in accordance with
such Registration Statement; or

          (ii) the Holder shall have notified the Company of the proposed disposition and
shall have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and (ii) if requested by the Company, the
Holder shall have furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require registration of
such shares under the Securities Act or registration or qualification under any
applicable state securities laws.

          (iii) Notwithstanding the foregoing, no investment representation letter or
opinion of counsel shall be required for any transfer of any Securities (i) in
compliance with Rule 144 or Rule 144A of the Securities Act, or (ii) by gift, will
or intestate succession by such holder to his or her spouse or lineal descendants or
ancestors or any trust for any of the foregoing; provided that in each of the
foregoing cases the transferee agrees in writing to be subject to the terms of this
Agreement. In addition, if the holder of any Securities delivers to the Company an
unqualified opinion of counsel that no subsequent transfer of such Securities shall
require registration under the Securities Act, the Company shall, upon such

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contemplated transfer, promptly deliver new documents/certificates for such
Securities that do not bear the legend set forth in Section 7(e)(aa) hereof. The
cost of any such opinion delivered by the holder of any Securities to the Company
pursuant to this paragraph shall be borne by the Company up to a maximum of $1500.

     (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange,
properly endorsed on the Assignment Form and subject to the provisions of this Warrant with respect
to compliance with the Securities Act and with the limitations on assignments and transfers as
contained in this Section 6, the Company, at its expense, shall issue to the order of the Holder a
new warrant or warrants of like tenor, in the name of the Holder or as the Holder (on payment by
the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon
exercise hereof.

     (e) Compliance with Securities Laws.

          (i) The Holder of this Warrant, by acceptance hereof, acknowledges that this
Warrant and the Warrant Shares to be issued upon exercise hereof or conversion
thereof are being acquired solely for the Holder’s own account and not as a nominee
for any other party, and for investment, and that the Holder will not offer, sell or
otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise
hereof or conversion thereof except under circumstances that will not result in a
violation of the Securities Act or any applicable state securities laws. Upon
exercise of this Warrant, the Holder shall, if requested by the Company, confirm in
writing, in a form satisfactory to the Company, that the Warrant Shares so purchased
are being acquired solely for the Holder’s own account and not as a nominee for any
other party, for investment, and not with a view toward distribution or resale.

          (ii) This Warrant and all certificates representing the Warrant Shares issued
upon exercise hereof or conversion thereof shall be stamped or imprinted with one or
the following legends:

          (aa) “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE. THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT
IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.”

          (bb) Any additional legend required by the laws of the State of Maryland or any
other applicable state.

          (iii) The Company agrees to remove promptly, upon the request of the Holder of
this Warrant and Securities issuable upon exercise of the Warrant, the

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legend set forth in Section 6(e)(ii) hereof from the documents/certificates for
such securities upon full compliance with this Agreement and Rule 144.

7. Notices.

(a) In case:

          (i) the Company shall take a record of the holders of its Common Stock (or
other stock or securities at the time receivable upon the exercise of this Warrant)
for the purpose of entitling them to receive any dividend or other distribution, or
any right to subscribe for or purchase any shares of stock of any class or any other
securities, or to receive any other right;

          (ii) of any capital reorganization of the Company, any reclassification of the
capital stock of the Company, any consolidation or merger of the Company with or
into another corporation, or any conveyance of all or substantially all of the
assets of the Company to another corporation;

          (iii) of any voluntary dissolution, liquidation or winding-up of the Company;
or

          (iv) of any redemption or conversion of all outstanding Common Stock;

then, and in each such case, the Company will mail or cause to be mailed to the Holder or Holders a
notice specifying, as the case may be, (A) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (B) the date on which such reorganization, reclassification,
consolidation, merger, conveyance, dissolution, liquidation, winding-up, redemption or conversion
is to take place, and the time, if any is to be fixed, as of which the holders of record of Common
Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall
be entitled to exchange their shares of Common Stock (or such other stock or securities) for
securities or other property deliverable upon such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be given at least
fifteen (15) days prior to the date therein specified.

     (b) All notices and other communications required or permitted hereunder shall be in writing,
and may be delivered in person, by telecopy, electronic mail, overnight delivery service or United
States mail, in which event they may be mailed by first class, certified or registered, postage
prepaid, addressed (i) if to a Holder, at the address that such Holder shall have furnished to the
Company in writing, with a copy to such Holder’s counsel at the address that shall have been
furnished to the Company, or (ii) if to the Company, at its address set forth on the signature page
hereto, or at such other address as the Company shall have furnished to the Holder in writing. All
such notices and other communications shall be deemed received (i) in the case of personal
delivery, telecopy and electronic mail, on the date of such delivery (ii) in the case of overnight
delivery service, on the date of such delivery, and in the case of mailing, on the third business
day following the date of such mailing if sent to a U.S. address and on the tenth (10th)
business day following the date of such mailing if sent to an address outside the U.S.

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     8. Amendments. Any provision of this Warrant may be amended, waived or modified
(either generally or in a particular instance, either retroactively or prospectively, and either
for a specified period of time or indefinitely), upon the written consent of the Company and the
Holder.

     9. Representations and Covenants of Holder. This Warrant has been entered into by the
Company in reliance upon the representations and covenants of the Holder which the Holder makes by
execution of the Purchase Agreement.

     10. Covenant of Company. If the Company provides any benefit to the holders of
publicly traded warrants of the Company, it shall provide all such benefits to the Holder. For
purposes of the preceding sentence, a benefit includes, without limitation, an offer to redeem the
publicly traded warrants, an amendment to the Warrant Agreement to reduce the exercise price or
extend the term of the publicly traded warrants.

     11. Miscellaneous.

     (a) This Warrant shall be governed by and construed in accordance with Maryland law, without
regard to the conflict of laws provisions thereof.

     (b) In the event of a dispute with regard to the interpretation of this Warrant, the
prevailing party may collect the cost of attorney’s fees, litigation expenses or such other
expenses as may be incurred in the enforcement of the prevailing party’s rights hereunder.

     (c) This Warrant shall be exercisable as provided for herein, except that in the event that
the expiration date of this Warrant shall fall on a Saturday, Sunday, and/or any United States
federally recognized Holiday, the expiration date for this Warrant shall be extended to 5:00 p.m.
Eastern time on the business day following such Saturday, Sunday, or recognized Holiday.

     (d) Headings; References. All headings used herein are used for convenience only and
shall not be used to continue or interpret this Warrant. Except as otherwise indicated, all
references herein to Sections refer to Sections hereof.

[SIGNATURES ON NEXT PAGE]

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[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

     IN WITNESS WHEREOF, India Globalization Capital has caused this Warrant to be executed by its
officers thereunto duly authorized.

     Dated:
February 5, 2007.

	 	 	 	 	 	 	 
	 	 	INDIA GLOBALIZATION CAPITAL, IN.C	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Ram Mukunda 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: Ram Mukunda	 	 
	 	 	Title: Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OLIVEIRA CAPITAL LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven M. Oliveira 	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Steven M. Oliveira	 	 
	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	
	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

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