Document:

Shareholder Agreement, dated July 11, 2007, for Ayngaran International Limited

 Exhibit 10.3 

 

					
	DATED	  	 	11 JULY 2007	  
		
	 BETWEEN:
	  			

 EROS INTERNATIONAL PLC 
 -and- 
 DENKAL FINANCE INC 

-and- 
 FILM BOND
LIMITED 
 -and- 
 AYNGARAN INTERNATIONAL LIMITED 
 -and- 

KUMARASAMY KARUNAMOORTHY 
 -and- 
 Dr JAYABALAN MURALI MANOHAR 

 
  
 Shareholders Agreement 
 -for- 

AYNGARAN INTERNATIONAL LIMITED 
  

 
  

	T:	+ 44(0)2076324200 

	F:	+ 44 (0) 2078318171 

	E:	atul@hcasols.com 

	DX:	356 CHANCERY LANE 

	Ref:	ASA]/12198 

 THIS AGREEMENT is made the 11 day of July 2007 BETWEEN: 

 

	(1)	EROS INTERNATIONAL PLC, a company registered in the Isle of Man with company number 116107 C and whose registered office address Athol Street, Douglas, Isle of Man, IM1
1LB; 

 (“Eros”); 
  

	(2)	DENKAL FINANCE INC, a BVI Business Company registered in the British Virgin Islands under Number 1015366, whose address for service is at PO Box 1092, 12-14 Avenue
Reverdil, CH-1260, Nyon 1, Switzerland; 

 (“DF); 

 

	(3)	FILM BOND LIMITED, a company registered in England and Wales under Number 05310285, whose registered office is at the Penthouse, 14 Bickenhall Mansions, Bickenhall
Street, London, W1U 6BR; 

 (“FB”); 
  

	(4)	AYNGARAN INTERNATIONAL LIMITED, a company registered in Isle of Man with company number 117883C and whose registered office is at PO Box 203, St. George’s Court,
Upper Church Street, Douglas, Isle of Man, IM99 1EE; 

 (“the Company”). 

 

	(5)	KUMARASAMY KARUNAMOORTHY of 15 Palmer Avenue, Cheam, SM3 8EF, United Kingdom; 

 (“KK”); and 
  

	(6)	Dr JAYABALAN MURALI MANOHAR of 8th Floor, Crown House, North Circular Road, London NW10 7PN; 

 (“JM”). 
 RECITALS: 

 

	(A)	Eros, DF and FB (together “the Founders”) have agreed to co-operate in the establishment and management of the business of producers and distributors of Tamil
films worldwide through the medium of the Company; 

  

	(B)	The Founders have agreed to enter into this Agreement for the purpose of regulating their relationship with each other and certain aspects of the affairs of and their
dealings with the Company; 

  

	(C)	The Company has agreed with the Founders that it will comply with the terms and conditions of this Agreement insofar as they relate to the Company.

 NOW IT IS HEREBY AGREED as follows: 

 

	1	Definitions and interpretation 

In this Agreement (which expression shall be deemed to include the Schedules hereto): 

 

	 	(1)	unless there be something in the subject or context inconsistent therewith, the following expressions have the following meanings: 

 

			
	“the ‘A’ Directors”	  	means the directors of the Company appointed by Eros pursuant to Article 14(1) and holding office from time to time;
		
	“the Additional Directors”	  	has the meaning attributed thereto in the Articles;
		
	“agreed form”	  	means in the form previously agreed by or on behalf of the parties to this Agreement;
		
	“the Articles”	  	means the articles of association from time to time of the Company (and any reference to an “Article” shall be a reference to that article of the
Articles);
		
	“Asset Sale”	  	means the completion of any transaction or series of transactions whereby any person or group of connected persons (as such expression is defined by section 119 of the Income and
Corporation Taxes Act 1970) purchases the Company or the whole or substantially the whole of the business and assets of the Company (including the whole or substantially the whole of the business and assets of any subsidiary of the
Company);
		
	“the ‘A’ Shareholders”	  	means all those persons holding “A” Shares and who are parties to this Agreement from time to time;
		
	“the ‘A’ Shares”	  	means the “A” Shares of £1 each in the share capital of the Company from time to time having the rights set out in the Articles;
		
	“Associate”	  	 means any of:
  

(i)       the husband, wife, father, mother, child or other lineal descendant;
or
  

(ii)      the trustees of any settlement under which the relevant person and/or his
spouse or children is or is capable of being a beneficiary; or

  
 2 

			
		
		  	 (iii)    any nominee or bare trustee for the relevant person or for any
other Associate of the relevant person; or
  
 (iv)     if the relevant person is a company, any subsidiary or holding company of the relevant person and any other subsidiary of any such holding company;

		
	“the Auditors”	  	means the auditors from time to time of the Company;
		
	“the ‘B’ Directors”	  	means the directors of the Company appointed by the “B” Shareholders pursuant to Article 14(2) and holding office from time to time;
		
	“Bad Leaver”	  	 means either:-
  

(A)     a person who has ceased to be an employee of the Company in circumstances
arising from:
  

(a)      any material breach by him of the terms of his service agreement or
employment contract, which breach if capable of remedy, has not been remedied within a period of 30 days from the date on which notice of such breach was sent to such person;

 
 (b)      his
gross misconduct, fraud or other such action which would entitle the Company to terminate his service arrangements summarily; or
  

(c)      resignation of his own volition at any time save where the resignation is
:
  

(i)       as a result of reaching the Company’s retirement
age;
  

(ii)      as a direct result of a material breach by the Company of his service
agreement or employment contract; or
  
 (iii)    by prior written agreement of the Company (such agreement not to be unreasonably withheld or delayed).

  
 3 

			
		
		  	 (B)     a corporation, which owns “B” Shares, which itself is the subject of any Change of
Control (other than in respect of any Change of Control which has resulted from the death of any beneficial owner where the beneficial ownership has been transferred or passes to the deceased’s spouse or a trust for the sole benefit of such
spouse and any issue of the deceased (including a discretionary trust for the benefit of such spouse and/or issue(s)), provided that such spouse and/or issue or issue upon the determination of such a trust (or trustees as the case may be) has duly
executed a Deed of Adherence) without the prior written consent of the “A” Shareholders such consent not to be unreasonably withheld or delayed).

		
	“the Board Minutes”	  	means the minutes of a meeting of the board of directors of the Company in the agreed form;
		
	“the ‘B’ Shareholders”	  	means all those persons holding “B” Shares and who are parties to this Agreement from time to time;
		
	“the “B” Shares”	  	means the “B” Shares of £1 each in the share capital of the Company from time to time having the rights set out in the Articles;
		
	“the Business Plan”	  	means the operating budget for the Company and each Subsidiary in the agreed form;
		
	“Change of Control”	  	 means, in relation to any corporation, that situation where:

 
 (a)      any
person or group of connected persons not having control (as defined in section 416 of the Income and Corporation Taxes Act 1988 and for section 119A of the Income Tax Act 1970 of the Isle of Man) of such a corporation on the date hereof acquiring
such control; or
  

(b)      there is any change in the beneficial ownership of such
corporation;

  
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	“Confidential Information”	  	information confidential to the Company and any company in the Group including but not limited to any information of a confidential type or which the recipient of the information
is aware is confidential or that it should remain confidential, any intellectual property belonging to the Company or any company in the Group, or any customer and prospective customer information, or film or film producer information (including
names addresses, contact names and addresses, telephone numbers and e-mail addresses) business plans, trade secrets, product specifications, market research, financial data and forecasts, capital strategy and capital raising activities (proposed and
ongoing), business methods, marketing strategies, tenders and price sensitive information, fees, commission structure, feasibility figures and plans relating to contracts (actual and proposed), details of actual and proposed contracts, requirements
of customers or prospective customers or film producers, information in respect of which the Company or any company in the Group is bound by an obligation of confidence to any third party;
		
	“Companies Act”	  	means the Companies Act 1985;
		
	“Completion”	  	means the performance by the parties of the obligations assumed by them respectively under clause 4 and “Completion Date” shall be the date upon which the final of such
obligations is duly performed;
		
	“Deed of Adherence”	  	means a deed, to be subject to the laws of England and Wales, duly executed by any new “A” or new “B” Shareholder pursuant to which such person undertakes to
the Company and the remaining Shareholders to observe and be bound by the terms of this Agreement as if they had been named as a party to this Agreement;
		
	“Deferred Purchase Agreement”	  	means the agreement to be entered into immediately on Completion between the Company and KK in the agreed form;
		
	“the Directors”	  	means the directors from time to time of the Company;

  
 5 

			
		
	“Emoluments”	  	means emoluments of every description including, without limitation, salaries, directors’ fees, bonuses, commissions, profit shares under any incentive scheme, pension
contributions payable by any member of the Group and benefits in kind as quantified for income tax purposes;
		
	“Encumbrance”	  	means and includes any interest, right or equity of any person (including, without prejudice to the generality of the foregoing, any right to acquire, option or right of
pre-emption) or any mortgage, charge, pledge, lien or assignment or any other encumbrance, priority or security interest or arrangement of whatsoever nature over or in the relevant property;
		
	“group”	  	means, in relation to a company, that company and any company which is from time to time a holding company of that company or a subsidiary of that company or of such holding
company;
		
	“the Group”	  	means the Company and its subsidiaries (if any) from time to time;
		
	“Indebtedness”	  	means any loan, bond, note, loan stock or debenture or other obligation for borrowed monies, any liability in respect of any acceptance credit or note or bill discounting
facility, any amount of consideration left outstanding by way of loan under any agreement for the sale of assets and/or the supply of services and any guarantee or indemnity in respect of any of the foregoing, the amount thereof in each case being
taken for this purpose to be the maximum amount capable of being outstanding from the Company thereunder whether or not then due or owing or advanced at the time of calculation;
		
	“Listing”	  	means the admission of all or any of the Ordinary Shares or any securities of the Company to any recognised investment exchange or regulated market (as such expressions are
defined in the Financial Services and Markets Act 2000) for listed securities;
		
	“Loan Agreement”	  	means, the loan agreement between the Company and Eros in the agreed form;
		
	“Long Stop Date”	  	means, the [.....] day of [......] 2007;
		
	“the New Memorandum and Articles	  	means the new memorandum and articles of association in the agreed form to be adopted by the Company on
Completion;

  
 6 

			
		
	“the Nominated Directors”	  	means the “A” Directors and the “B” Directors from time to time;
		
	“the Ordinary Shares”	  	means the “A” Shares and/or the “B” Shares as applicable;
		
	“Producer”	  	any person, firm, company or other organisation producing motion pictures with whom the Relevant Restricted Party has had dealings or of whom the Relevant Restricted Party was
aware during twelve month period prior to the Termination Date and who had entered into contractual relations with the Company or the Group for the purpose of acting as a producer, agent, distributor, actor or who otherwise acted as a provider of
services to the Company or the Group for the purpose of the Restricted Business;
		
	“Project”	  	any type of business with which the Relevant Restricted Party has any dealings following the Termination Date which if it had been carried out prior to that date for the benefit
of the Company or any Company in the Group in accordance with this agreement would have been regarded as Restricted Business, save that such business would not be for the benefit of the Company or the Group in accordance with this agreement would
have been regarded as Restricted Business, save that such business would not be for the benefit of the Company or any company in the Group;
		
	“Prospective Customer”	  	any person, firm, company or other organisation who or which was at the Termination Date in negotiations with the Company or any company in the Group with a view to dealing with
the Company or any company in the Group as a customer;
		
	“Prospective Producer”	  	any person, firm, company or other organisation with whom the Relevant Restricted Party had dealings during the twelve month period prior to the Termination Date with a view to
their becoming either a Producer or, for the benefit of any Project, a person equivalent to a Producer save that their services will not be for the benefit of the Company or any company in the Group but for the benefit of a
Project;

  
 7 

			
		
	“Qualifying Shareholder”	  	 means any:
  

(a)      “B” Shareholder and/or

 
 (b)      KK
for such period as KK retains control of DF and so long as DF retains any “B” Shares and/or;
  

(c)      KK for so long as he remains an employee of the Company ;

 
 (d)      JM
for such period as JM retains control of FB and so long as FB retains any “B” Shares

		
	“Recognised Investment Exchange”	  	the same meaning as in section 417 of the Financial Services and Markets Act 2000;
		
	“Relevant Restricted Party”	  	Has the meaning set out in Clause 16.1 of this Agreement
		
	“Restricted Business”	  	the business of producing Tamil films including, selling, leasing, renting, distributing, advertising, publicising, marketing or otherwise exploiting Tamil films and/or any other
business or activity of the Company or any company in the Group in which the Relevant Restricted Party had any involvement during the course of his ownership of the “B” Shares or, (and by way of addition for JM) in respect of JM during
FB’s ownership of the “B” Shares . or (and by way of addition for KK) in respect of KK during DF’s ownership of the “B” Shares or in respect of KK’s employment with the Company, in respect of any business with
which KK has had any involvement during the course of his employment or with which any employee of the Company under KK’s control had any involvement or dealings in the course of his duties at any time during the twelve month period on and
prior to the Termination Date but excluding the KK Business (as that is defined in the service agreement for KK);
		
	“Restricted Employee”	  	any employee or consultant or director of the Company or any company in the Group or such other person engaged by any company in the Group who either is employed at the
Termination Date or who had been employed during the twelve month period prior to the Termination Date and who had access to Confidential Information and with whom the Relevant Restricted Party had personal
dealings;

  
 8 

			
		
	“Restricted Supplier”	  	any person, firm or company who at any time during the twelve month period prior to the Termination Date was (1) a supplier of the Company or any company in the Group and (2)
being a person, firm or company with whom the Relevant Restricted Party personally dealt either on behalf of the Company or any company in the Group or by reason of the Relevant Restricted Party’s relationship with the Company or any company in
the Group during the twelve month period prior to the Termination Date;
		
	“Restricted Territory”	  	any country in which the Company or any company in the Group actively trades at the Termination Date or during the twelve month period prior to the Termination Date and where the
Relevant Restricted Party had any involvement with the Restricted Business (other than involvement which was entirely minor or inconsequential);
		
	“parties hereto”	  	means the Shareholders, JM, KK and the Company;
		
	“the Service Agreement”	  	means the service agreement between Mr Kumarasamy Karunamoorthy (“KK”) and the Company in the agreed form;
		
	“share”	  	means a share in the capital of the Company of whatever class;
		
	“the Shareholders”	  	means the “A” Shareholders and the “B” Shareholders together (and the expression “Shareholder’ shall be construed accordingly);
		
	the “Termination Date”	  	means in relation to each Relevant Restricted Party (as that term is used in Clause 16.1 of this Agreement) the date on which they first cease to be a Qualifying Shareholder;
and
		
	“the Written Resolution”	  	means the resolution in writing of members of the Company in the agreed form;

  

	 	(2)	reference to any statute or statutory provision includes a reference to that statute or statutory provision as from time to time amended, extended, consolidated or
re-enacted; 

  

	 	(3)	subject as herein otherwise expressly defined, words and phrases defined in the Companies Act (but excluding any statutory modification thereof not in force on the date
of this Agreement) and in the Articles bear the same respective meanings; 

  
 9 

	 	(4)	references to a “subsidiary” or “holding company”“ shall have the meanings given to them by section 1 of the Companies Act 1974 of the Isle of
Man; 

  

	 	(5)	unless otherwise specified, words importing the singular include (where appropriate) the plural, words importing any gender include (where appropriate) every gender,
and words importing persons include bodies corporate and unincorporate; and (in each case) vice versa; 

  

	 	(6)	reference to clauses and other provisions are references to clauses and other provisions of this Agreement and any reference to a sub-clause is, unless otherwise
stated, a reference to a sub-clause of the clause in which the reference appears; 

  

	 	(7)	all warranties, representations, indemnities, covenants, agreements and obligations given or entered into by more than one person are given or entered into jointly and
severally unless otherwise specified; 

  

	 	(8)	the headings shall not affect the interpretation of this Agreement; 

  

	 	(9)	the expressions “hereunder, “hereto”, “herein”, ‘hereof and similar expressions relate to this entire Agreement and not to any particular
provision thereof; 

  

	 	(10)	any undertaking by any of the parties hereto not to do any act or thing shall be deemed to include an undertaking not to permit or suffer the doing of that act or
thing; 

  

	 	(11)	references to this Agreement or any other document shall, where appropriate, be construed as references to this Agreement or such other document as varied,
supplemented, novated and/or replaced in any manner from time to time; 

  

	 	(12)	references to any English legal or accounting term for any action, remedy, method of judicial proceeding, insolvency proceeding, event of incapacity, legal or
accounting document, legal or accounting status, court, governmental or administrative authority or agency, accounting body, official or any legal or accounting concept practice or principle or thing shall in respect of any jurisdiction other than
England be deemed to include what most approximates in that jurisdiction to the English legal or accounting term concerned; and 

  

	 	(13)	where, in this Agreement, a party is required to act reasonably or without delay, such provisions shall be deemed to impose on the relevant party an obligation not to
act unreasonably or with undue delay. 

  

	2	Consideration 

 In consideration
of the mutual agreements and undertakings herein set out, the parties to this Agreement have granted the rights and accepted the obligations hereinafter appearing. 

  
 10 

	3	Warranties 

  

	 	(1)	DF and FB jointly and severally warrant to Eros that the Company: 

  

	 	(a)	is a private company limited by shares incorporated on 27 September 2006 under the Companies Act 1931 of the Isle of Man; 

 

	 	(b)	has an authorised share capital of £2,000 divided into 2000 shares of £1 each, of which 2 have been issued at par and is legally and beneficially owned by
Company’s existing Isle of Man agents; 

  

	 	(c)	is not trading and has never traded nor incurred any liabilities or obligations (present or contingent) of any nature whatsoever other than its paid up share capital
and those imposed on the Company by virtue of its incorporation and any changes in its officers and constitution since its incorporation; 

  

	 	(d)	has only two directors, being Oliver George Webster and John Michael Killip; 

 

	 	(e)	has no employees; 

  

	 	(f)	is not the owner of or interested in any assets whatsoever, including the share capital of any other body corporate; and 

 

	 	(g)	is not a party to any litigation or arbitration. 

  

	 	(2)	KK warrants and represents that DF is beneficially owned as to 85.7% by him and as to 14.3% by Srinivasan Venkatesh of 46 West Drayton, Park Avenue, West Drayton, UB7
7QB, and that he and DF are acting solely for their own account in respect of the subject matters of this Agreement and not on behalf of any other person. 

  

	 	(3)	JM warrants and represents that FB is beneficially owned as to 100% by himself and his wife, and that JM and FB are acting solely for their own account in respect of
the subject matters of this Agreement and not on behalf of any other person. 

  

	 	(4)	Any breach of the warranties contained in clause 3(2) or 3(3) shall result in the relevant warrantor becoming a Bad Leaver, without prejudice to any other rights of the
parties hereto. 

  

	 	(5)	 KK, who is a party to this agreement for the purpose of ensuring that this clause 3(5) is adhered to by himself and DF, agrees for his own account and
on behalf DF (for the purposes of this clause a “KK Entity”) to ensure that prior to selling or otherwise transferring or otherwise alienating any beneficial interest in any asset forming a part of the KK business (for the purposes of this
clause “the Asset”) anywhere in the world to an unconnected third party in the open market, he shall procure that the KK Entity shall first offer in writing, or procure the offer in writing, to the Company the right to acquire the Asset on
the same terms as those proposed by the KK Entity with the unconnected third party. The Company will have a period of 30 Business 

  
 11 

	 	
Days within which to decide to accept such an offer and if the Company does not serve notice of such acceptance on KK within 30 Business Days of such offer then the KK Entity shall be under no
restriction as to the disposal of such interest in the Asset. If the Company does accept such offer then it shall have a further period of 30 Business Days from notice of such decision to complete the acquisition of the Asset upon the terms
indicated to it by the KK Entity (such terms, for the avoidance of doubt, being the same terms upon which the KK entity was prepared to sell such an interest). The parties hereto will use all reasonable endeavours to procure that the Company shall
complete the acquisition of the Asset if it accepts the offer to be made hereunder however, if the Company fails or refuses to complete the acquisition of the Asset in accordance with the terms and conditions of this sub-clause (5) and subject
to the parties hereto having used all reasonable endeavours as aforesaid then the KK Entity shall be relieved from all restrictions contained in this sub-clause (5) but only in relation to the Asset. 

 

	4	Completion 

  

	 	(1)	Completion shall take place at 201 Kailash Haze, Veera Desai Road, Andheri (west) Mumbai immediately after the execution of this Agreement. 

 

	 	(2)	On Completion: 

  

	 	(a)	each of the parties hereto shall procure that a meeting of the board of Directors shall be held, at which, inter alia, the following matters shall be considered,
and, subject to the resolutions set out in the Written Resolution being passed, approved: 

  

	 	(i)	the reduction of the Company’s authorised share capital from £2,000 to £100 by the cancellation of 1,900 unissued ordinary shares of £1.00 each;

  

	 	(ii)	the redesignation of the two issued ordinary shares of £1.00 each in the capital of the Company as 1 “A” ordinary share of £1.00 (being an
‘A’ Share) and 1 “B” ordinary share of £1.00 (being a ‘B’ Share); 

  

	 	(iii)	the redesignation of the remaining 98 unissued ordinary shares of £1.00 each as 50 “A” ordinary shares of £1.00 each (being ‘A’ Shares)
and 48 “B” ordinary shares of £1.00 each (being ‘B’ Shares); 

  

	 	(iv)	the adoption of the New Memorandum and Articles; 

  

	 	(v)	the transfers and allotments of “A” ordinary shares and “B” ordinary shares as referred to in sub-clauses (c) (i) to (v) below; and

  

	 	(vi)	the Company’s entry into this Agreement will be confirmed, approved and ratified, all as more particularly described in the Board Minutes;

  
 12 

	 	(b)	the parties hereto shall procure that Equity Trustees One Limited and Equity Trustees Two Limited, both of 15-19 Athol Street, Isle of Man, as the holders of one
ordinary share of £1.00 each in the capital of the Company, shall receive a copy of the Written Resolution for their consideration, and, if thought fit, execution, regarding the matters set out in sub-clause (a) immediately above and
sub-clauses (c) (i) to (v) (inclusive) immediately below; 

  

	 	(c)	subject to the resolutions set out in the Written Resolution being passed: 

 

	 	(i)	Eros shall subscribe for and pay for a total of 50 ‘A’ shares at par; 

 

	 	(ii)	DF shall subscribe for and pay for a total of 43 ‘B’ shares at par; 

 

	 	(iii)	FB shall subscribe for and pay for a total of 5 ‘B’ shares at par; 

 

	 	(iv)	Equity Trustees One Limited shall transfer 1 ‘A’ Share to Eros at par; 

 

	 	(v)	Equity Trustees Two Limited shall transfer 1 ‘B’ Share to DF at par. 

 

	 	(d)	the parties hereto shall procure the following to be done: 

  

	 	(i)	KK shall enter into the Service Agreement with the Company; 

  

	 	(ii)	the documents and forms referred to in the Board Minutes therein shall be executed and filed at the Isle of Man Financial Supervisions Commissions Companies Registry;
and 

  

	 	(ii)	the register of members of the Company shall be written up to reflect the redesignations, transfers, allotments and payments up referred to in paragraphs 4(2)(a) and
4(2)(c), and share certificates in respect of 51 “A” Shares and 43 “B” Shares and 5 “B” Shares shall be issued in favour of and delivered to Eros, DF and FB respectively. 

 

	 	(e)	The Directors shall pass such other resolutions and do such other things as are necessary in order to comply with the obligations of the parties hereunder.

  

	 	(f)	The Company and KK shall enter into the Deferred Purchase Agreement. 

  

	 	(g)	The Company shall enter into the Loan Agreement. 

  
 13 

	 	(3)	The Shareholders undertake with each other that they shall procure that, within the time limits prescribed by statute, those documents and forms referred to in the
Board Minutes which require filing at the Isle of Man Financial Supervision Commissions Companies Registry shall be so filed. 

  

	 	(4)	The Shareholders and the Company undertake with each other that they shall use all reasonable endeavours to as soon as possible following the date of this Agreement
(and in respect of the matters contained or referred to in clause 4 (4) (a); (b) (i) and (ii) and (d) in any event on or before the Long Stop Date): 

 

	 	(a)	promote the formation of a wholly-owned subsidiary (incorporated in England) to be owned by the Company called respectively Ayngaran International (UK) Limited
(“AUK 1”) (KK and Vijay Ahuja shall be appointed as directors of the company); 

  

	 	(b)	procure that the subsidiary nominated by the Company acquires the following assets: 

 

	 	(i)	for the sum of £1 million (less any sum paid pursuant to the Deferred Purchase Agreement) the Intellectual Property Rights (as defined in the Deferred
Purchase Agreement) and in accordance with the provisions comprised within the Deferred Purchase Agreement in respect of the Films specified in the Deferred Purchase Agreement; 

 

	 	(ii)	for the sum of £1.00 on a going concern basis, the goodwill of the business (which shall include the trading name used by the business) carried on by KK under the
name or style of “Ayngaran” together with the lease in respect of the premises at Unit 19, Riverside Business Park, Lyon Road, Wimbledon, London, SW19 2RL and fixtures and fittings situated at the premises; and 

 

	 	(iii)	immediately upon an Asset Sale or a Listing the Company shall pay in cash the sum of £500,000 by way of additional consideration for the acquisition of the assets
referred to at clause 4.4 (b) (i); 

  

	 	(c)	promote the formation of a wholly owned subsidiary in the Republic of Mauritius called Ayngaran International (Mauritius) Limited. 

 

	 	(5)	Eros undertakes with the Founders and separately with the Company to advance to the Company an interest free loan of US$1,000,000 following satisfaction of the
provisions governing the “Initial Films Transfer Drawing” of the Loan Agreement. Such loan (in addition and without prejudice to those conditions referred to in those provisions dealing with repayment in the Loan Agreement) is to be
repayable immediately upon the Long Stop Date having passed without the conditions set out in clause 4 (4) (a); (b) (i); (b)(ii) and (c)having occurred in accordance with the terms thereof. 

  
 14 

	 	(6)	If, on or before the Long Stop Date any of the steps listed in clause 4 (4) (a); (b) (i); (b) (ii) and (c) above are not taken and subject to
the Shareholders having complied with their respective obligations contained in this Agreement, then any of the Shareholders may by written notice to the others and to the Company rescind this Agreement whereupon each parties obligations hereunder
shall cease and determine and the Company shall be wound up but without prejudice to any antecedent rights or obligations of any of the parties against the other(s) under this Agreement. 

 

	5	Auditors; bankers; registered office; accounting reference date; secretary 

 Unless otherwise agreed between the Shareholders in writing: 
  

	 	(1)	the auditors of the Company shall be Grant Thornton Isle of Man of 19/21 Circular Road, Douglas, Isle of Man IM99 2BE; 

 

	 	(2)	the bankers to the Company shall be Barclays Private Client International Limited of Barclays House, Victoria Street, Barclays, Isle of Man; 

 

	 	(3)	the registered office of the Company shall be at 15-19 Athol Street, Douglas, Isle of Man IM1 1LB; 

 

	 	(4)	the accounting reference date of the Company shall be 31st March in each year; and 

 

	 	(5)	the secretary of the Company shall be provided by Equity Limited of 15-19 Athol Street, Douglas, Isle of Man, IM1 1LB or such other person as may be selected by the
Directors. 

  

	6	Application of subscription monies 

 Unless otherwise agreed in writing by the Shareholders, the subscription monies and the loan referred to in clause 4 shall be applied by the Company solely for the purposes specified in the Business Plan.

  

	7	Financing 

 Eros undertakes to DF
and separately with FB that it will at all times procure that it and its Nominated Directors (so far as they are able) will take such action as is reasonably necessary including the passing of any resolutions to enable the facility provided by Eros
under the Loan Agreement to be properly drawn down from time to time. 
  

	8	Dividend policy 

 The Dividend
Policy of the Company from time to time shall be as determined by the Directors having regard to the Indebtedness at the time of any proposed declaration or payment of dividend. 

  
 15 

	9	The Company’s business 

  

	 	(1)	Except as the Shareholders may otherwise agree in writing or save as otherwise provided or contemplated in this Agreement or in the Business Plan, the Shareholders
shall exercise their powers in relation to the Company so as to ensure that: 

  

	 	(a)	the Company carries on and conducts its business and affairs in a proper and efficient manner and for its own benefit and in accordance with the Business Plan;

  

	 	(b)	the Company transacts all its business on arm’s length terms; 

  

	 	(c)	the Company shall not enter into any agreement or arrangement restricting its competitive freedom to provide and take goods and services by such means and from and to
such persons as it may think fit; 

  

	 	(d)	all business of the Company shall be undertaken and transacted by the Directors save as provided in the Service Agreement; 

 

	 	(e)	subject to the Business Plan, the business of the Company shall be carried on pursuant to policies laid down from time to time by the Directors;

  

	 	(f)	the Company shall maintain with a well-established and reputable insurer adequate insurance against all risks usually insured against by companies carrying on the same
or a similar business and (without prejudice to the generality of the foregoing) for the full replacement or reinstatement value of all its assets of an insurable nature; 

 

	 	(g)	the Company allots and issues its shares and other securities at the best price reasonably obtainable in the circumstances; 

 

	 	(h)	the Company shall not acquire, dispose of, hire, lease, licence or receive licences of any assets, goods, rights or services otherwise than at the best price reasonably
obtainable in the circumstances; 

  

	 	(i)	the Company shall keep full and proper books of account and therein make true and complete entries of all its dealings and transactions of and in relation to its
business; 

  

	 	(j)	the Company shall provide each Shareholder within the accounting information specified in clause 4.2 of the Loan Agreement within the time limits specified in clause
4.2 thereof; 

  

	 	(k)	the Company shall prepare its annual accounts in accordance with all applicable accounting standards; 

 

	 	(l)	the Company shall prepare such accounts in respect of each accounting reference period as are required by statute and procure that such accounts are audited as soon as
practicable and in any event not later than 3 months after the end of the relevant accounting reference period; 

  
 16 

	 	(m)	the Company shall keep all of the Shareholders fully informed as to all its financial and business affairs promptly upon written request from any such Shareholder;

  

	 	(n)	if the Company requires any approval, consent or licence for the carrying on of its business in the places and in the manner in which it is from time to time carried on
or proposed to be carried on, the Company will use its best endeavours to maintain the same in full force and effect; 

  

	 	(o)	the Company shall adopt and maintain in force bank mandates which require that each single cheque issued or bank transfer made is required to be signed by at least two
authorised signatories where one of the authorised signatory shall be the Nominated Director appointed by the A Shareholder and the other authorised signatory shall be the Nominated Director appointed by the B Shareholder save that the managing
director shall be authorised to sign cheques or procure a bank transfer on his signature alone for sums not exceeding $100,000; 

  

	 	(p)	the Board of Directors of the Company shall delegate to the managing director all functions in connection with the booking of actors and the production of motion
pictures (in contrast to commissioning) in India and elsewhere in accordance with his Service Agreement. 

  

	 	(2)	The expression “the Company”, where used in sub-clause (1), shall be deemed to include each of the other companies in the Group (if any) from time to time to
the intent and effect that the provisions of sub-clause (1) shall apply in relation to each such company as they apply in relation to the Company, save for those provisions which expressly or by implication relate only to the Company.

  

	 	(3)	Each Shareholder shall use all reasonable and proper means in his power to maintain, improve and extend the business of the Group and to further the reputation and
interests of the Group, provided always that the provisions of this sub-clause shall not require any Shareholder to place business with any company in the Group; 

 

	 	(4)	The “B” Shareholders shall procure that the “B” Directors shall prepare and make available to the “A” Directors and to the “A”
Shareholders and notify them of such availability: 

  

	 	(a)	Operating Budget and Financial Plan: 

 Not later than 20 Business Days before the accounting reference date of the Company in each calendar year a detailed draft operating budget for the Company (including estimated major items of revenue and
capital expenditure) for the following financial year, broken down on a monthly basis, and an accompanying cash-flow forecast (the “Annual Budget”); 

  
 17 

	 	(b)	Management Accounts: 

 Within 15
days after the end of each calendar month, unaudited Company management accounts, such accounts to include detailed profit and loss account and statement of the company’s cash position, actual and 12 month forecast cash flows, analysis of sales
and other revenue and a review of the budget together with a reconciliation of results with revenue and capital budgets for the corresponding month and access to its books, records, auditors and premises (including copying facilities) at such times
as may be reasonably requested; 
  

	 	(5)	If KK wishes to resign from his employment with the Company then in such circumstances (on the making of a written application by KK) the Company hereby agrees with KK
that the Company shall not unreasonably withhold or delay its consent for such resignation. 

  

	10	Directors and chairman 

  

	 	(1)	Notwithstanding the provisions of the Articles, none of the Shareholders will appoint a Nominated Director, without reasonable prior consultation with the others with a
view to reaching agreement on the person to be appointed save that if agreement can not be reached then such Shareholder will not be precluded from making such appointment as they deem fit; 

 

	 	(2)	Unless otherwise agreed by an “A” Director and a “B” Director in any particular case, every meeting of the Directors shall be held at the registered
office of the Company; 

  

	 	(3)	The “A” Shareholders shall be entitled to appoint the Chairman of the Company (who shall be an “A” Director). 

 

	 	(4)	Any Shareholders removing a Nominated Director shall be responsible for and shall indemnify the other Shareholders and the Company (and any member of the Group) against
any claim by such Nominated Director for unfair or wrongful dismissal or other compensation arising out of such removal. 

  

	 	(5)	Unless otherwise agreed in writing by the majority of the “B” Shareholders, the “A” Shareholders shall exercise their powers in relation to the
Company so as to ensure that: 

  

	 	(a)	the Company does not terminate the service agreement of KK, save in circumstances where the Company is entitled to summarily dismiss him; and 

 

	 	(b)	if a “B” Director is removed from, or vacates his office (for whatever reason), the Company will enter into a service agreement with such replacement as the
“B” Shareholders shall determine, (subject to the prior written consent of the “A” Shareholders, such consent not be unreasonably withheld or delayed), as nearly as may be on the same terms and conditions as those contained in
the service agreement of the person being replaced. 

  
 18 

	 	(6)	The “A” Shareholders shall procure that the “A” Directors attend meetings of the Board of Directors of the Company and if passed sign such
resolutions as are passed by the Board and the “B” Shareholders shall procure such matters mutatis mutandis in respect of the “B” Directors. 

 

	11	Shareholders’ protection 

  

	 	(1)	Matters requiring Directors’ approval 

 The Shareholders shall exercise their powers in relation to the Company to procure that, save as otherwise provided in this Agreement or in the Business Plan and save with the prior approval of a
resolution of the Directors on which an “A” Director and a “B” Director has voted in favour or of a unanimous written resolution of the Directors, the Company will not and none of the other companies in the Group will:

  

	 	(a)	vary the Emoluments of any of its Directors or of any Shareholder or of any Associate of a Director or Shareholder; 

 

	 	(b)	enter into any service agreement with any employee or Director which is not terminable without payment of compensation on not more than 3 months’ notice;

  

	 	(c)	dismiss any of its senior employees (meaning an officer or an employee whose rate of gross contractual salary is £30,000 per annum or more), save in
circumstances where the Company is entitled summarily to dismiss that employee or otherwise dismiss that person in accordance with applicable law or pursuant to such service agreement; 

 

	 	(d)	enter into or vary any contract or arrangement (whether legally binding or not) with any of its Directors or any Shareholder or with any associate of a Director or
Shareholder; 

  

	 	(e)	incur any material expenditure or liability of a capital nature (including, for this purpose, the acquisition of any asset under lease or hire purchase) save in respect
of office machinery and equipment reasonably required in the ordinary course of its business; 

  

	 	(f)	enter into any material contract or arrangement outside the ordinary course of its business or whereby any person would or might receive remuneration calculated by
reference to its income or profits; 

  

	 	(g)	pay any remuneration or expenses to any person other than as proper remuneration for work done or services provided or as proper reimbursement for expenses incurred in
connection with its business; 

  

	 	(h)	except as provided in clause 19, commence any legal or arbitration proceedings (other than routine collection of trade debts); 

  
 19 

	 	(i)	give any guarantee, indemnity or security in respect of the obligations of any other person; 

 

	 	(j)	create or allow to subsist any Encumbrance over any of its assets; 

  

	 	(k)	borrow any money or obtain any advance or credit in any form other than normal trade credit or other than on normal banking terms for unsecured overdraft facilities or
vary the terms and conditions of any borrowings or bank mandates; 

  

	 	(l)	lend any money to any person (otherwise than by way of deposit with a bank or other institution, the normal business of which includes the acceptance of deposits) or
grant any credit to any person (except to its customers in the normal course of business); 

  

	 	(m)	sell, transfer, lease, licence or in any other way dispose of any of its assets otherwise than in the ordinary course of its business; or 

 

	 	(n)	factor or assign any of its book debts. 

  

	 	(2)	Matters requiring Shareholders’ approval 

 Unless otherwise agreed between the Shareholders in writing, the Shareholders shall exercise their powers in relation to the Company to procure that (save as otherwise provided in this Agreement or in the
Business Plan) the Company will not and none of the other companies in the Group will: 
  

	 	(a)	issue, allot, redeem, purchase or grant options over any of its shares or other securities or reorganise its share capital in any way; 

 

	 	(b)	pay or make any dividend or other distribution; 

  

	 	(c)	make any distribution out of capital profits or capital reserves (including any share premium account or capital redemption reserve fund); 

 

	 	(d)	pass any resolution whereby its classification or status may be changed; 

  

	 	(e)	alter the provisions of its memorandum or articles of association or pass any resolution for winding up; 

 

	 	(f)	acquire or make any investment in another company or business or incorporate any subsidiary; 

 

	 	(g)	change the nature or scope of its business as carried on from time to time or commence any new business not being ancillary or incidental to such business;

  

	 	(h)	enter into any partnership or joint venture with any other person; 

  

	 	(i)	make any early repayment of Loans; 

  
 20 

	 	(j)	make any claim, disclaimer, surrender, election or consent of a material nature for tax purposes; 

 

	 	(k)	in respect of any of the matters referred to in this sub-clause or in sub-clause (1) and subject always to the provisions of clause 9(1)(p), permit any power or
authority of its directors to be delegated to any executive director or committee of directors or to any other person whatsoever (except in the proper performance of their duties under their Service Agreements). 

 

	12	Transfers of shares 

  

	 	(1)	None of the Shareholders shall transfer or dispose of, whether by way of sale, assignment, transfer or other disposition of any legal, equitable or other interest or
permit the creation of an Encumbrance or trust (a “Transfer”) over any of his Ordinary Shares in the Company except in accordance with, as permitted by and subject to the provisions of this Agreement or pursuant to paragraph 8(15) of the
Articles of Association of the Company adopted pursuant to Clause 4(2) hereof. 

  

	 	(2)	The parties hereto shall procure that before any person (other than a person who is already a Shareholder) is registered as a holder of any share in the Company, such
person shall enter into a a Deed of Adherence (in a form satisfactory to the Shareholders). The Company shall not register any such person as the holder of any share until such a deed has been executed. Upon being so registered, that person shall be
deemed to be a party to this Agreement. 

  

	 	(3)	The Company shall not register any transfer made in breach of sub-clauses (1) or (2) and the shares comprised in any transfer so made shall carry no rights
whatsoever unless and until, in each case, the breach is rectified. 

  

	 	(4)	The parties hereto will co-operate and will do and execute all other acts, deeds and things necessary to give effect to the provisions of this Agreement and the
Articles concerning transfers of shares and the Shareholders will (so far as it is within their capacity so to do) procure that a meeting of the Board of Directors of the Company is duly convened to approve and register each Transfer permitted or
required by any provision of this Agreement or the Articles (subject to the same being duly stamped or adjudicated or certified nil duty payable). 

  

	13	Save for a Transfer made in accordance with clauses 13.4, 13.5, 13.6, 14 and 15, each Shareholder undertakes that it will not at any time make a Transfer except in
accordance with clauses 13.2 or 13.3. 

  

	 	13.1	Subject to the provisions of clauses 13.2 and 13.4 a Shareholder may sell its Shares provided that the rights of first refusal conferred in favour of the other
Shareholders under clause 13.3 shall have been exhausted. 

  
 21 

	 	13.2	Notwithstanding clause 13.1, a Shareholder may sell any of its Shares at any time with the prior written consent of and upon terms and conditions agreed by each of the
other Shareholders. 

  

	 	13.3	Subject to clause 14 following the period of 4 years following the Completion Date if any Shareholder wishes to transfer any of its Shares or any interest therein the
following shall apply: 

  

	 	13.3.1	that Shareholder (the “Vendor”) shall give a notice in writing to the Company (a “Transfer Notice”) stating the number of Shares (the “Offered
Shares”) it wishes to transfer and the particulars of (including the price offered by) the person, if any, to whom it wishes to transfer the Offered Shares; 

 

	 	13.3.2	the Offered Shares shall be offered in writing to each Shareholder (other than the Vendor) (for the purposes of this clause 13, the “Remaining Shareholders”)
after the agreement or calculation of their price. Their price shall be as agreed between the Vendor and the Directors or, failing such agreement within 21 days of the date of the Transfer Notice, the Fair Value (in accordance with clause 13.7);

  

	 	13.3.3	the Remaining Shareholders shall have 30 days from the date of the Transfer Notice or, as the case may be, the determination of the Fair Value in accordance with clause
13.7 (the “Offer Period”) whichever shall be the later to decide and notify the Company in writing the maximum number (if any) of Offered Shares they wish to purchase (such Remaining Shareholders referred to as the “Purchasers”);

  

	 	13.3.4	the Offered Shares shall be allocated among the Purchasers as nearly as may be pro rata to their existing shareholdings and the Purchasers’ notification under
clause 13.3.3 amounting to (for the avoidance of doubt) a contract between the Purchasers and the Vendor for the sale and purchase of the Offered Shares at the price stated in the Transfer Notice and shall be completed 30 days after receipt of the
notification from the Purchasers; 

  

	 	13.3.5	if notifications are not received in respect of all the Offered Shares under clause 13.3.3 above the remaining Offered Shares shall (at the end of the Offer Period)
then be offered in writing by the Vendor to the Purchasers and the provisions of this clause 13.3.2, 13.3.3 and 13.3.4 shall apply to such offer mutatis mutandis. If notifications are not received from the Purchasers in respect of all the remaining
Offered Shares within 21 days from the end of the Offer Period, the Vendor may (subject to clause 13.3.6 below), but only at any time after the 4th Anniversary of Completion sell any remaining Offered Shares to any person (the “Third Party
Transferee”) approved in writing by those Remaining Shareholders holding, in aggregate, 50% of the total voting rights conferred on the Shares in issue (excluding the Shares held by the Vendor), such consent not to be unreasonably withheld or
delayed, on terms which are no more favourable to the Third Party Transferee than the terms offered to the Remaining Shareholders or on such terms as the Remaining Shareholders shall approve in writing; 

  
 22 

	 	13.3.6	the sale and purchase of the Offered Shares shall be completed 30 days after notifications are received in respect of all the Offered Shares; 

 

	 	13.3.7	completion of the sale and purchase of the Offered Shares shall take place at the registered office of the Company whereupon: 

 

	 	13.3.7.1	the Vendor shall deliver to the Third Party Transferee and/ or the Purchasers (as applicable) a duly executed transfer or transfers in favour of the Third Party
Transferee or the Purchasers together with the relative share certificates in respect of the Offered Shares; 

  

	 	13.3.7.2	against such delivery, the Purchasers and/ or the Third Party Transferee shall pay the price agreed or the Fair Value as determined in accordance with clause 13.7 (as
the case may be) to the Vendor in cleared funds and for value on the relevant date of completion; 

  

	 	13.3.7.3	the Remaining Shareholders shall each exercise their rights so as to enable the transfer(s) referred to in clause 13.3.7.2 to be registered; and

  

	 	13.3.7.4	the Vendor shall do all such other things and execute all such other documents as the Purchasers and/ or the Third Party Transferee may reasonably require to give
effect to the sale and purchase of the Offered Shares; and 

  

	 	13.3.7.5	all monies lent to the Company by EROS, pursuant to the Loan Agreement or otherwise, shall be repaid in full (together with any accrued interest prior to any share
transfer being registered by the Company) . 

  

	 	13.4	If a Shareholder (the “Departing Shareholder”): 

  

	 	13.4.1	being an individual, dies; 

  

	 	13.4.2	is a Bad Leaver; 

  

	 	13.4.3	being an individual, is or becomes bankrupt; 

  

	 	13.4.4	being a company, becomes insolvent, has a receiver or administrator or other encumbrance appointed over all or a substantial part of its assets, enters into an
arrangement or compromise with its creditors, has a petition presented or resolution passed for its winding up or administration or is the subject of any analogous occurrence in any jurisdiction; or 

  
 23 

	 	13.4.5	being a company (other than an A Shareholder) is subject to any change in its beneficial ownership or if there shall be any alteration to the ownership or control of
any of the shares in the Shareholder or if the Shareholder is itself the subject to a Change of Control without the previous written approval of the A Shareholder; 

then such Departing Shareholder shall be deemed to have notified the Directors that it has become a Departing Shareholder, giving full
details, and any Director may declare that such Departing Shareholder shall be deemed to have given a Transfer Notice pursuant to clause 13.3 in respect of all of the shares held by it and the provisions of clause 13.3 shall apply accordingly to
such shares as though they were the Offered Shares, save that their price shall be the Fair Value of such shares as calculated in accordance with clause 13.7 unless the Departing Shareholder is a Bad Leaver or if the Shareholder has become a
Departing Shareholder by virtue of the provisions of clause 13.5, in which case, their price shall be the nominal value per Share and the transfer shall be deemed to have occurred immediately prior to the relevant event set out in clause 13.4.

  

	 	13.5	If KK leaves the employment of the Company without the previous approval in writing of the Company in circumstances that, had he been a Shareholder, he would be deemed
a Bad Leaver then DF shall also be deemed a Bad Leaver and immediately upon such determination such company(s) shall be deemed a Departing Shareholder for the purposes of this clause 13.5 and shall be deemed to have given a Transfer Notice in
respect of all of their Shares and the Price applicable for such Transfer of Shares shall be the nominal value of all such shares registered in the name of DF. 

 

	 	13.6	If any Departing Shareholder or Vendor fails to execute the relevant documents necessary to transfer its shares when such transfer has been agreed or is required under
this clause 13 within 14 days of the required date under this clause 13, any other Shareholder may (and such Departing Shareholder or Vendor hereby appoints any other Shareholder to act as its attorney on its behalf) to do all things and execute all
documents necessary to effect such transfer or sale. 

  

	 	13.7	The Fair Value shall be the fair selling value of the relevant shares calculated pro rata to the value of the entire issued equity share capital of the Company as
between a willing vendor and a willing purchaser at arm’s length on the assumption that the Company will continue in business as a going concern and without applying any discount for a minority holding or any premium for a majority holding and
ignoring the rights of pre-emption set out in this agreement and the Articles. The Fair Value shall be calculated if the Shareholders shall so agree by the firm appointed as auditors for the time being of the Company or in default of such agreement
an independent firm of chartered accountants agreed between the Shareholders within 21 days of notice from any Shareholder requiring such agreement or failing such agreement nominated on the request of any Shareholder by the President for the time
being of the institute of Chartered Accountants in England and Wales. Such firm shall act as experts not arbitrators, their decision shall be final and binding on the parties and their costs shall be borne as determined by such firm.

  
 24 

	 	13.8	For the purpose of ensuring that no circumstances have arisen whereby clause 13 were to apply or for any other reason any Director may from time to time require any
Shareholder or any person named as transferee in any proposed transfer to furnish to the Company such information and evidence as the Directors reasonably require. 

 

	14    (1)	It is hereby acknowledged and agreed that the parties’ intention is to achieve a Listing of the Company at the earliest practical opportunity, and that the parties
will, acting in good faith towards each other, use their reasonable endeavours to secure the same. 

  

	 	(2)	If at any time a third party (the “Buyer”) shall make a bona fide arm’s length offer to acquire the entire issued share capital of the Company (“the
Offer”), upon terms and conditions which Eros (the “Acceptor”) wishes to accept, and for a consideration equal to or greater than the Fair Value, then the Acceptor shall by written notice to the holder or holders of the other shares
(for the purposes of this clause 14, the “Remaining Shareholders”) require the Remaining Shareholders to either: 

  

	 	(i)	sell their shares upon like terms per share to the Buyer simultaneously with completion of the sale of the Acceptor’s shares to the Buyer; or

  

	 	(ii)	give the Remaining Shareholders the right to purchase the Acceptor’s shares at the same price and upon the same terms as the Offer whereupon the provisions of
clause 13.3.7 shall mutatis mutandis apply. 

  

	 	(3)	Written notice to sell from the Acceptor (or from the Remaining Shareholders to purchase) under this clause shall oblige the Remaining Shareholders or the Acceptor (as
these may be) to deliver up to the Buyer (or the Remaining Shareholders as the case may be) an executed transfer of such shares and the certificates in respect of the same and to sign and execute all other relevant documents in connection with the
sale. The provisions of Clause 13.3.7 shall apply mutatis mutandis to this clause 14. 

  

	15    (1)	This clause shall apply if more than 48 months has elapsed since the date of this Agreement and one or more Shareholders (the “Proposed Transferors”) wishes
to transfer all of its or their shares or any interest therein to a third party and if, as a result of the transfer, the transferee and its Associates would collectively hold 35 % or more of all the issued share capital of the Company.

  

	 	(2)	Where this Clause 15(1) applies, the Proposed Transferors may not transfer any of its or their shares or any interest therein unless, at least 28 days prior to the date
of the agreement to transfer, the transferee shall have made a written offer (“Clause 15 Offer”) to the other Shareholders (the “Offerees”) to purchase all of its or their shares at the same price per share (and otherwise on the
same terms) as are applicable to the proposed sale of shares by the Proposed Transferors. 

  
 25 

	 	(3)	The Clause 15 Offer shall be on terms that it shall be open for acceptance by the Offerees for not less than 21 days and, if accepted, the sale of all of the
Offerees’ shares shall be completed simultaneously with the completion of the sale of the Proposed Transferor’s shares and the provisions of clause 13.3 shall apply mutatis mutandis. 

 

	16    (1)	Each of the “B” Shareholders, and KK and JM shall be subject to the provisions of this Clause 16 and in making reference to each of them they shall be
referred to in this clause as the “Relevant Restricted Party”. 

  

	 	(2)	Each Relevant Restricted Party jointly and severally undertake to the Company (for the benefit of the Company and any company in the Group) that, subject to the proviso
hereinafter contained, none of them shall, whilst they remain a Qualifying Shareholder and for 12 months after they cease to be a Qualifying Shareholder, whether on their own behalf or jointly with or as an executive, employee, adviser, consultant
or agent for any other person directly or indirectly: 

  

	 	(a)	carry on or assist with, be employed by, be engaged by, hold a position with, be concerned in, interested in or control the carrying on of any activity or business
which is the same as or competes with the Restricted Business anywhere in any Restricted Territory, (except as the holder of shares in a company whose shares are listed on a Recognised Investment Exchange which confer not more than 3% in total of
the votes which could normally be cast at a general meeting of that company); 

  

	 	(b)	in relation to any business competing anywhere in any Restricted Territory which is the same as or in competition with the Restricted Business conduct any business,
perform any services for or canvas, solicit or approach or cause to be canvassed or solicited or approached for the purpose of obtaining business, orders or custom, or otherwise deal with any person, firm, company or other organisation which was a
client or customer of the Company or any company in the Group at the Termination Date or during the twelve month period prior to the Termination Date and with whom the Relevant Restricted Party had any dealings whilst a Qualifying Shareholder;

  

	 	(c)	in relation to any business competing anywhere in any Restricted Territory which is the same as or in competition with the Restricted Business conduct any business,
perform any services or supply goods to, canvas, solicit, deal or approach or cause to be canvassed, solicited or approached for the purpose of obtaining business, orders or custom of any Prospective Customer with whom the Relevant Restricted Party
had any dealings whilst a Qualifying Shareholder; 

  

	 	(d)	In relation to any business competing anywhere in any Restricted Territory which is the same as or in competition with the Restricted Business conduct any business
with, obtain services from, canvas, solicit, deal with or approach or cause to be canvassed, solicited or approached for the purpose of any Project or otherwise to deal with any person firm, company or other organisation which was a Producer or a
Prospective Producer at the Termination Date or during the twelve month period prior to the Termination Date and with whom the Relevant Restricted Party had dealings; 

  
 26 

	 	(e)	solicit or endeavour to entice away from the Company or any company in the Group or offer employment to or employ or offer to or conclude a contract for services in the
Restricted Territory with any Restricted Employee or procure or facilitate the making of such an offer; 

  

	 	(f)	seek to entice away from the Company or any company in the Group or otherwise solicit or interfere with the relationship between the Company and any Restricted Supplier
or any company in the Group and any Restricted Supplier. 

  

	 	(3)	Each Relevant Restricted Party shall not at any time after the Termination Date: 

 

	 	(a)	directly or indirectly anywhere in any Restricted Territory carry on a business either alone or jointly with or as officer, manager, agent, consultant or employee of
any person whether similar to any part of the business of the Company or any company in the Group (as conducted at any time) or otherwise under a title or name comprising or containing the word Ayngaran or any colourable imitations thereof and he
will at all times procure that any company controlled by him will not carry out such business under any such title or names; and 

  

	 	(b)	say or do anything which is harmful to the reputation or goodwill of the Company or any company in the Group (or to any of their respective businesses) or which is
likely to or is calculated to lead to any person, firm, company or other organisation to withdraw from or cease to continue to offer the Company or a company in the Group any rights of purchase, sale, import, distribution or agency enjoyed by it on
substantially equivalent terms to those previously offered and which is to the detriment of the Company or any company in the Group or which is otherwise likely to lead such a person to refuse to engage with the Company or any company in the Group;

  

	 	(c)	hold himself out falsely as being in anyway connected with any company in the Group; 

 

	 	(d)	solicit, entice or procure or endeavour to solicit, entice or procure any employee to breach his contract of employment with the Company or any company in the Group or
any person to breach his contract for services with the Company or any company in the Group; or 

  

	 	(e)	cause or permit any person under the control of the Relevant Restricted Party to do any of the acts or things specified in this Clause 16. 

 

	 	(4)	To the extent relevant to a Relevant Restricted Party, the period of each of the above restrictions shall be reduced by the period, if any, during which any Relevant
Restricted Party shall be placed on garden leave in accordance with his service agreement with the Company. 

  
 27 

	 	(5)	The Relevant Restricted Party agrees that each of the restrictions set out above constitutes an entirely separate, severable and independent covenant and restriction
upon him the duration extent and application of each of which is no greater than is reasonably necessary for the protection of goodwill and the legitimate trade connections of the Restricted Business. Further, if a restriction on him contained in
this agreement is found void but would be valid if some part of it were deleted or the period or area of application reduced such, the restriction shall apply with such modification as may be necessary to make it valid and effective,

  

	 	(6)	In the event that Eros does not or refuses to provide funding in accordance with terms of the Loan Agreement, the restriction set out in this Clause 16 shall become
voidable at the option of the Relevant Restricted Party whereupon the said restriction shall thereafter be unenforceable. 

  

	 	(7)	The “B” Shareholders, KK and JM shall comply in all respects with the share dealing code of Eros from time to time in force and notified to them.

  

	17	Confidentiality 

  

	 	(1)	Each of the Shareholders, KK and JM undertakes to each of the other Shareholders and the Company that he will not at any time hereafter use or divulge or communicate to
any person other than to officers or employees of the Group whose province it is to know the same or on the instructions of the Directors any confidential information (which shall include but not be limited to Confidential Information as defined in
this Agreement) concerning the business, accounts, finance, contractual arrangements or intellectual property (whether owned or licensed by the Group) or other dealings, transactions, affairs or property of the Group which may come to his knowledge
and he shall use all reasonable endeavours to prevent the publication or disclosure of any confidential information concerning such matters and so that these obligations shall continue to apply after that Shareholder (or KK or JM as appropriate)
shall cease to be a party to this Agreement or otherwise involved in the affairs of the Group without limit in point of time but shall cease to apply to information which shall come into the public domain other than by a breach of this clause or
which for any other reason, other than through the default of that Shareholder or KK or JM as the case may be, shall have ceased to be confidential. 

  

	 	(2)	Each of the parties hereto shall use all reasonable endeavours to procure that the Company and each other member of the Group observes and ensures that the officers,
employees and agents of each of them observe a corresponding obligation of confidence to that set out in sub-clause (1) in relation to the Shareholders themselves. 

 

	 	(3)	No announcement or publicity concerning the terms of this Agreement or the interests of any Shareholder in the Company shall be made or issued by any of the parties
hereto without the prior written approval of the other parties hereto other than as required by law or by the rules of any regulatory organisation to which any of the parties hereto is subject (in which case the Shareholders shall consult with each
other on the form of the announcement). 

  
 28 

	18	Shareholders’ consent 

Where this Agreement provides that any particular transaction or matter requires the consent, approval or agreement of any Shareholder,
such consent, approval or agreement may be given subject to such terms and conditions as that Shareholder may impose and any breach of such terms and conditions by any person subject thereto shall ipso facto be deemed to be a breach of the terms of
this Agreement. 
  

	19	The Articles 

  

	 	(1)	If, during the continuance of this Agreement, there shall be any conflict between the provisions of this Agreement and the provisions of the Articles then, during such
period, the provisions of this Agreement shall prevail as between the Shareholders over the Articles and, in the event of such conflict, the Shareholders shall procure at the request of any of the Shareholders such modification to the Articles as
shall be necessary to cure such conflict. 

  

	 	(2)	Each of the parties hereto undertakes with each of the others to fully and promptly observe and comply with the provisions of the Articles to the intent and effect that
each and every provision thereof shall be enforceable by the parties hereto inter se and in whatever capacity. 

  

	 	(3)	Nothing contained in this Agreement shall be deemed to constitute an amendment of the Articles or of any previous articles of association of the Company.

  

	20	Parties bound 

  

	 	(1)	The Company undertakes with each of the Shareholders to be bound by and comply with the terms and conditions of this Agreement insofar as the same relate to the Company
and to act in all respects as contemplated by this Agreement. 

  

	 	(2)	The Shareholders undertake with each other to exercise their powers in relation to the Company so as to ensure that the Company fully and promptly observes, performs
and complies with its obligations under this Agreement and the Articles. 

  

	 	(3)	Each Shareholder undertakes with each of the other parties hereto that, whilst he remains a party to this Agreement, he will not (except as expressly provided for in
this Agreement) agree to cast any of the voting rights exercisable in respect of any of the shares held by him in accordance with the directions, or subject to the consent of, any other person (including another Shareholder).

  
 29 

	21	Enforcement of the Company’s rights 

  

	 	(1)	If it appears that any “A” Shareholder or any associate of an “A” Shareholder (in whatever capacity) is in breach of any obligation which he owes to
the Company (whether under this Agreement or otherwise) or has misapplied or retained or become liable or accountable for any money or property of the Company, or has been guilty of any misfeasance or breach of any fiduciary or other duty in
relation to the Company or is under any obligation to indemnify the Company against any liability, then it is agreed that the prosecution of any right of action of the Company in respect thereof shall be passed to the “B” Directors, who
shall have full authority on behalf of the Company to negotiate, litigate and settle any claim arising thereout and the “A” Shareholders shall take all steps within their power to give effect to the provisions of this sub-clause.

  

	 	(2)	The provisions of sub-clause (1) shall apply mutatis mutandis in relation to any such default by any “B” Shareholder or any associate of a “B”
Shareholder and the conduct of any claim by the “A” Directors. 

  

	 	(3)	The Company hereby covenants with each of the Shareholders that any monies or property which the Company may recover or receive as a result of the operation of the
foregoing provisions of this clause shall be applied by it in a proper and efficient manner and for its own benefit. 

  

	22	Company’s Consent for Earlier Termination 

 In the event that either KK wishes to terminate his Service Agreement earlier than provided for in his Service Agreement he shall apply to the Company for its consent for such earlier termination then in
such circumstances the Company undertakes with KK that the Company shall not withhold or delay its consent unreasonably. 
  

	23	General 

  

	 	(1)	Costs 

 The Founders and the
Company shall pay their own costs and expenses incurred in relation to the negotiation, preparation and execution of this Agreement. 
  

	 	(2)	Notices 

 All notices which are
required to be given hereunder shall be in writing and shall be sent to the address of the recipient set out in this Agreement or in any Deed of Adherence any deed entered into pursuant to or such other address as the recipient may designate by
notice given in accordance with the provisions of this sub-clause. Any such notice may be delivered personally or by first class prepaid letter or facsimile transmission and shall be deemed to have been served if by personal delivery when delivered,
if by first class post 48 hours after posting and if by facsimile transmission when despatched. For the avoidance of doubt, notice given under this Agreement shall not be validly served if sent by e-mail. 

  
 30 

	 	(3)	Successors bound 

 This Agreement
shall be binding on and shall enure for the benefit of the successors and assigns and personal representatives (as the case may be) of each of the parties hereto. 
  

	 	(4)	Assignment 

 None of the parties
hereto may assign his rights or obligations in whole or in part hereunder without the prior written consent of the other parties hereto, provided that this sub-clause shall not prevent a transfer of shares carried out in accordance with this
Agreement. 
  

	 	(5)	Third Party Rights 

 A person who
is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement but this does not affect any right or remedy of a third party which exists or is available apart from that
Act. 
  

	 	(6)	Continuing agreement 

 All
provisions of this Agreement shall, so far as they are capable of being performed and observed, continue in full force and effect notwithstanding Completion, except in respect of those matters then already performed. 

 

	 	(7)	Further assurance 

 The parties
hereto shall, and shall use their respective reasonable endeavours to procure that any necessary third parties shall, do, execute and perform all such further deeds, documents, assurances, acts and things as any of the parties hereto may reasonably
require by notice in writing to the others to carry the provisions of this Agreement and the Articles into full force and effect. 
  

	 	(8)	Time of the essence 

 Any date or
period mentioned in this Agreement may be extended by agreement between the parties hereto, failing which, as regards any such date or period, time shall be of the essence of this Agreement. 

 

	 	(9)	Entire agreement 

 This
Agreement, together with the documents referred to herein, supersede any previous agreement between the parties hereto in relation to the matters dealt with herein, represent the entire agreement between the parties hereto in relation to such
matters and may not be varied except by a written instrument signed by all the parties hereto. Each of the parties hereto hereby acknowledges that in entering into this Agreement it has not relied on any

  
 31 

 
representation or warranty save as expressly set out herein or in any document referred to herein, except that nothing in this sub-clause shall operate to limit or exclude any liability in
respect of fraudulent or pre-contractual misrepresentation or fraudulent concealment. 
  

	 	(10)	Law 

 This Agreement shall be
governed by and construed in accordance with English law and the parties hereto irrevocably submit to the exclusive jurisdiction of the English courts in respect of any dispute or matter arising out of or connected with this Agreement. 

 

	 	(11)	No partnership 

 Nothing in this
Agreement shall constitute or be deemed to constitute a partnership between any of the parties hereto and none of them shall have any authority to bind the others in any way. 

 

	 	(12)	Duration 

 The provisions of this
Agreement shall remain in full force and effect for so long as any of the Founders continues to hold shares but, in relation to a Shareholder who has transferred all of his shares as permitted by this Agreement and the Articles, they shall thereupon
cease to have any further force and effect except as provided in sub-clause (13). 
  

	 	(13)	Termination 

 The termination of
this Agreement however caused and the ceasing by any Shareholder to hold any shares shall be without prejudice to any obligations or rights of any of the parties hereto which have accrued prior to such termination or cesser and shall not affect any
provision of this Agreement which is expressly or by implication provided to come into effect on or to continue in effect after such termination or cesser. 
  

	 	(14)	Waiver 

  

	 	(a)	No failure to exercise and no delay in exercising on the part of any of the parties hereto any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies provided in this Agreement are cumulative and not
exclusive of any rights or remedies otherwise provided by law. 

  

	 	(b)	Each of the parties hereto may release or compromise the liability of any of the other parties hereto under this Agreement or grant to such party time or other
indulgence without affecting the liability of any other of the parties hereto under this Agreement. 

  
 32 

	 	(15)	Severability 

  

	 	(a)	Notwithstanding that the whole or any part of any provision of this Agreement may prove to be illegal or unenforceable, the other provisions of this Agreement and the
remainder (if any) of the provision in question shall continue in full force and effect. In relation to any illegal or unenforceable part of this Agreement, the parties hereto agree to amend such part in such manner as may be requested from time to
time by any of the parties hereto provided that such proposed amendment is legal and enforceable and to the maximum extent possible carries out the original intent of the parties in relation to that part. 

 

	 	(b)	If any part of this Agreement or the Articles shall be held by any court of competent jurisdiction to be unenforceable against or by the Company, such part shall be
treated as being severable from the remainder of this Agreement or, as the case may be, the Articles and the Shareholders shall promptly exercise their powers in relation to the Company to procure (insofar as they have the power lawfully to do so)
that the severable part is nevertheless put into or given effect in accordance with, or to the maximum extent possible in accordance with, the original intent of the parties hereto in relation to that part. 

 

	 	(16)	Exercise of powers 

 Where any of
the parties hereto is required under this Agreement to exercise his or its powers in relation to any company in the Group to procure a particular matter or thing, such obligation shall be deemed to include an obligation to exercise his or its powers
both as a shareholder and as a director (where applicable) of such company and to procure that any nominee of his or it or any director appointed by him or it shall procure such matter or thing but, in each case, only insofar as the person in
question can lawfully do so. 
 EXECUTED and delivered as a deed the day and year first before written, 

 

					
	 EXECUTED and

DELIVERED (but on the date
 of this
Deed) as a DEED by
 Eros International Plc acting by:
	  	 )
 )

)
 )

)
	  	 DIRECTOR    /s/ Kishore Lulla
  

DIRECTOR    /s/ Jyoti Deshpande

			
	 EXECUTED and 
 DELIVERED (but on the date
 of this Deed) as a DEED by

Denkal Finance Inc acting by:
	  	 )
 )

)  /s/ Jay Valla [l] oh

)  and Chana[e]ry

)  Consultants Inc.
	  	 DIRECTOR    /s/ [illegible]
  

DIRECTOR    /s/ [illegible]

  
 33 

					
			
	 EXECUTED and

DELIVERED (but on the date
 of this
Deed) as a DEED by
 Film Bond Limited acting by:
	  	 )
 )

)
 )

)
	  	 DIRECTOR /s/ J. Murali Manohar
  

DIRECTOR /s/ [illegible]

			
	 EXECUTED and 
 DELIVERED (but on the date
 of this Deed) as a DEED by

Ayngaran International
 Limited acting
by:
	  	 )
 )

)
 )

)
 )
	  	 DIRECTOR /s/ Ken Naz
  

DIRECTOR

  
 34 

									
	EXECUTED and DELIVERED (but on the date of this can deed) as a DEED by the said Dr JAYABALAN MURALI MANOHAR in the
presence of:	 	 )
 )

)
 )

)
	 	SIGNATURE /s/ J. Murali Manohar
					
	Signature of witness	 	: /s/ [illegible]	 		 		 	
					
	Name of witness	 	: Hugh Cartwright & Amin Solicitors	 		 		 	
					
	Address of witness	 	 : 12 John Street
 : London WC1N
2EB
	 		 		 	
					
	Occupation	 		 		 		 	
			
	SIGNED and DELIVERED (but on the date of this can deed) as a DEED by the said KUMARASAMY KARUNAMOORTHY in the presence
of:	 	 )
 )

)
 )

)
 )
	 	SIGNATURE /s/ K. Karunamoorthy
					
	Signature of witness	 	: /s/ [illegible]	 		 		 	
					
	Name of witness	 	: Hugh Cartwright & Amin Solicitors	 		 		 	
					
	Address of witness	 	 : 12 John Street
 : London WC1N
2EB
	 		 		 	
					
	Occupation	 		 		 		 	

  
 35 

  
 

 

  
 36Employment Agreement of Sunil Lulla as Executive Vice  Chairman

 Exhibit 10.4 
 [PICTURE OF CURRENCY] 
 [SEVERAL STAMPS] 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (the “Employment Agreement”), dated as of the 29 day of September, 2009 between 

 

	1.	EROS INTERNATIONAL MEDIA PRIVATE LIMITED, a private limited company incorporated under the Companies Act, 1956 and having its registered office at
201, Kailash Plaza, Near Laxmi Industrial Estate, Andheri(W), Mumbai 400053, India (hereinafter referred to as the “Company”) (which expression shall unless repugnant to the context or meaning thereof include its successors and
administrators) of the ONE PART. 

 AND 

 

	2.	SUNIL LULLA son of Mr. Arjan Lulla presently residing at Aumkar Bunglow 172, Dr Rajendra Jain Marg, Off Gandhi Gram Road, Juhu, Mumbai 400049 aged
about 45 years (hereinafter referred to as the “SL”) of the ONE PART. 

 (Unless repugnant to the context or
meaning thereof the Company and SL are hereinafter collectively referred to as the “Parties” and simply as “Party”). 

 WHEREAS 
  

	A.	The Company is presently engaged in the business, inter alia, of Film Production and Distribution of Film Rights (the “Business”). 

 

	B.	The Board of Directors of the Company (the “Board”) has appointed by the resolution passed at its meeting held on September 29, 2009 SL as its
Executive Vice Chairman for a term of three years subject to and on the terms and conditions setforth therein. 

  

	C.	The SL having accepted the aforementioned appointment with the Company as its wholetime director with the designation of Executive Vice Chairman of the Company and
having agreed to provide services relating to the Company (hereinafter referred to as the “Employment”), it is deemed necessary to record in writing the terms and conditions of the Employment of SL as Executive Vice Chairman of the
Company by entering into this Employment Agreement. 

 NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS:

  

	1.	In consideration of payment of the remuneration and provision of the perquisites and employment benefits setforth in Schedule I hereto the SL agrees to and accepts the
Employment with the designation and title Executive Vice Chairman on the terms and conditions set out herein. For removal of doubt it is expressly agreed that the employment benefits setforth in this Agreement including the Schedules hereto are in
addition to and not in derogation of those contained in the applicable service rules of the Company unless contrary to or in consistent with the provisions of this Agreement. The remuneration of SL and his appointment shall always be subject to the
provisions of the Companies Act, 1956 and the Articles of Association of the Company (the “Articles”). 

  

	2.	As the Executive Vice Chairman of the Company, SL shall be the Chief executive officer of the Company and shall perform all such duties and exercise all such powers in
respect of management of the Company, as are consistent with his position as the chief executive officer and Executive Vice Chairman of the Company, under the control and superintendence of the Board. Without prejudice to the generality of the
forgoing SL shall subject to the Companies Act, 1956, and the superintendence, control and direction of the Board of the Company, is vested with full power, responsibility and authority for operational management of the Company within the framework
of the Strategic Business Plan and the Budget of the Company as approved by the Board from time to time. 

  
 2 

 The power, responsibility and authority of the Executive Vice Chairman of the Company shall
not extend to decision-making on any matters which are expressly reserved to the shareholders or the Board of Directors of the Company but it shall be a part of the Executive Vice Chairman’s responsibility to formulate and propose for decision
by the Board corporate strategy and policy for the Company and proposals on any other matter required to be decided by the Board. 
 To this end subject always to the approved Strategic Business Plan and Budgets and compliance with Company’s rules, regulations and policies from time to time in force, the Executive Vice Chairman
shall have the responsibility (together with all powers necessary or incidental to discharging such responsibility) to: 
  

	 	(a)	direct and coordinate all departmental heads; 

  

	 	(b)	direct and coordinate all departmental functions namely: 

 FINANCIAL e.g. financial planning and budgeting, accounting, treasury, audit, taxation, working capital management, cost accounting and control; 

PRODUCTION e.g. production of films 
 SALES e.g. sales strategy, trade management and incentivisation, distribution, management of receivables; 
 MARKETING e.g. marketing strategy, advertising, promotion, distribution, forecasting; 
 HUMAN RESOURCES e.g. manpower planning, recruitment, compensation and remuneration, training, employee relations; 
  

	 	(c)	prepare the Strategic Business Plan and Annual Budget for submission to and approval by the Board. 

 

	 	(d)	decide upon and implement all actions which he may consider necessary or desirable for the implementation or achievement of the Strategic Business Plan or the Budget
provided that the Executive Vice Chairman may only implement any action which conflicts with either the Strategic Business Plan or the approved Budget after approval by the Board; 

 

	 	(e)	engage new employees of the Company or any subsidiary of the Company and terminate the employment of any employee of the Company or any subsidiary of the Company
provided that he shall consult with the Chairman before engaging or terminating the employment of any person reporting directly to him (whether within the Company or any or any subsidiary of the Company); and 

  
 3 

	 	(f)	decide upon and implement all other matters relating to the day-today management of the Company including its subsidiaries. 

 

	3.	The SL shall during his Employment, subject to the supervision, direction and control of the Board, perform and discharge faithfully and to the best of his ability the
duties, functions and responsibilities assigned to him including those which may hereafter be assigned from time to time by the Board as Executive Vice Chairman of the Company. Except during vacation periods and absences due to temporary illness,
the SL as Executive Vice Chairman shall devote all his time, attention and energies to the business of the Company as is necessary, appropriate or advisable to carry out the duties, functions and responsibilities assigned to him.

  

	4.	The term of office of the SL during his Employment as Executive Vice Chairman shall be for a period of 3 (Three) years from the date of his appointment by the Board
(hereinafter referred to as the “Term”). Provided however, if desired by the Company, the Term of the Employment shall be extended at the end of the Term at the sole option of the Company on mutually agreed terms and conditions.

  

	5.	The SL covenants and agrees that, except with the consent of the Company, during the Term of his Employment and thereafter for a period of 2 (two) years from the date
of expiry of and/or sooner termination of his Employment, SL shall not disclose to any person for any purpose or use in any business or venture, either directly or indirectly through any person, firm, company or other body corporate in which the SL
or his relatives hold in aggregate not less than 5% percent of its issued equity capital or otherwise controls the business of conduct of its affairs any or all (i) trade secrets, (ii) particulars of suppliers of raw materials and
equipment, and customers, and (iii) all other information (including information contained in or derived from any intellectual property, management information systems, data disks, tapes and flowcharts) relating to the business of the Company.
The obligation under this Clause shall survive the termination of this Employment Agreement. 

  

	6.	The SL as Executive Vice Chairman agrees that during the Term of his Employment, he shall not indulge, participate, control and/or be involved in, any activity or
business, directly or indirectly, whatsoever through any other entity competing with the business or activities of the Company. Nothing contained hereinabove and Clause 5 hereof shall apply to: 

 

	 	(i)	an investment made by the SL in the share capital of a public listed company; and 

  
 4 

	 	(ii)	to investments made by the SL as a passive investor in the share capital of any company or other body corporate which company or body corporate provided that such
company or body corporate is controlled by a Relative (as defined in Section 2(41) of the Act) of SL. 

  

	7.	The SL agrees from the date hereof he shall not use for himself or for the benefit of any third party or publish or disclose any company confidential information save
and except for the business of the Company. 

  

	8.	At any time after the date hereof, the SL shall not knowingly do anything that might be prejudicial to the business of the Company or its interest.

  

	9.	Each covenant contained in this Employment Agreement shall be construed as a separate covenant and if one or more of the covenants is held to be against public interest
or unlawful or in any way an unreasonable restraint of trade, the remaining covenants shall continue to bind the SL. 

  

	10.	If any covenant contained in this Employment Agreement would be void as drawn but would be valid if the period of application were reduced or if some part of the
covenant were deleted, the covenant in question shall apply with such modification as may be necessary to make it valid and effective. 

  

	11.	The SL agrees and undertakes that during the term of his Employment, SL shall assign to the Company, all intellectual property including all inventions, whether
patented or not patented copyrights, design rights, trade marks obtained by him individually or on behalf of the Company in relation to the work carried on, discovered, invented designed and/or authored by him (hereinafter referred to as
“Intellectual Properties”) during his term of office as Executive Vice Chairman of the Company. Such Intellectual Properties shall constitute the absolute property of the Company and the SL shall not lay claim on any such
Intellectual Properties during the term of his Employment or after expiry or sooner termination of such Employment. 

  

	12.	The SL shall be bound by all the general terms and conditions applicable to employees of the Company not contrary to or inconsistent with the provisions of this
Employment Agreement, or under any or all the applicable laws. 

  
 5 

	13.	Notwithstanding anything to the contrary in this Employment Agreement, in the event of termination of the Employment by the SL for any reason whatsoever, and in the
event the SL has any pending entitlements to exercise the option to purchase the Shares of the Company, SL shall surrender or deemed to have surrendered his entitlements, stock options and warrants in this regard simultaneously with the
resignation/termination except in the event of termination other than due to an Event of Breach after the expiry of two years from the date of this Agreement. 

 

	14.	This Employment Agreement may not be assigned by any party hereto. Any notice required or permitted to be given under this Employment Agreement shall be sufficient if
in writing and sent by registered mail to: 

 SL: Aumkar Bunglow, 

172, Dr Rajendra Jain Marg, 
 Off Gandhi Gram Road, 
 Juhu, Mumbai 400049. 

The Company : 
 Eros International Media Private Limited 
 201 Kailash Plaza, Plot No A-12,

 Opp Laxmi Industrial Estate, 
 Link Road, Andheri (W), 
 Mumbai 400053 

Fax: 022-26732586 
  

	15.	This Employment Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior agreements and arrangements
relating to the subject matter hereof. It may be changed, modified and amended only by an agreement in writing and signed by the parties hereto. The parties hereto agree that in the event of any conflict between the terms and conditions of this
Employment Agreement and any other arrangement or agreement, including any employee stock option plan, the terms and conditions of this Employment Agreement shall prevail. 

 

	16.	The Employment Agreement shall be terminated at the option of the Company by not less than [30 (thirty)] day notice in writing to SL in the event of material breach of
any of the terms and conditions of this Employment Agreement by SL or occurrence of any of the Events of Default. Events of Defaults under this Employment Agreement (“Events of Default”) shall be the following:

  

	 	(i)	an act of dishonesty or fraud by SL intended to result in gain or personal enrichment of SL; 

  
 6 

	 	(ii)	SL personally engaging in gross misconduct including willful disregard of the directions of the Board of which causes material harm or injury to the business of the
Company; 

  

	 	(iii)	SL’s willful and continued failure to substantially perform the duties and obligations of his employment which are not remedied within twenty days after notice
thereof from the Board of Directors; 

  

	 	(iv)	SL being convicted of a felony, or a misdemeanor or gross misdemeanor relating to an act of dishonesty or fraud against, or a misappropriation of property belonging to
the Company; 

  

	 	(v)	SL’s engagement in a conduct which substantially impairs his ability to perform the duties and obligations of the Employment or is likely to cause material harm to
the business or reputation of the Company which is not remedied within 15 (fifteen) days after notice thereof from the Company; 

  

	 	(vi)	SL personally engaging in any act of moral turpitude including misappropriation of any property of the Company or which causes or is likely to cause material harm to
the business or reputation of the Company which is not remedied within 30 (thirty) days after notice thereof from the Company; 

  

	 	(vii)	SL breaching in any material respect the terms of this Employment Agreement (or any confidentiality agreement or invention or proprietary information agreement with the
Company) which is not remedied within 30 (thirty) days after notice thereof from the Company. 

  

	17.	The SL agrees and acknowledges that he is appointed as the Executive Vice Chairman by virtue of his employment as a whole time functional director of the Company and
upon the ceasure of his employment as such on account of termination, resignation, superannuation or otherwise, he shall cease to be director of the Company. 

 

	18.	In the event of termination of Employment of SL as the Executive Vice Chairman of the Company for any of the reasons setforth in Clause 16 above, the Executive Vice
Chairman shall not be entitled to his salary and perquisites, for the balance period of the Term in accordance with Schedule I hereto. 

  

	19.	The SL shall not be entitled to participate or vote on any resolution of the Board with respect to any matter in which he is, directly or indirectly, interested.

  
 7 

	20(a)	In the event any of any claim, controversy, dispute or difference between parties hereto, arising out of or in connection with or in relation to this Employment
Agreement, either party will be entitled refer the same to binding arbitration in accordance with the Arbitration and Conciliation Act, 1996, and the Rules made thereunder. The reference shall be to a sole arbitrator if the parties hereto agree
upon a sole arbitrator; and failing such agreement, to three arbitrators, one to be appointed by company, the other to be appointed by the SL and the third to be appointed by the two arbitrators appointed by the Parties.

  

	(b)	The notice should accurately set out the disputes between the Parties, the intention of the aggrieved party to refer such disputes to arbitration as provided herein,
the name of the person it seeks to appoint as an arbitrator with a request to the other party to agree to such arbitrator within 30 days from the receipt of the notice. All notices by one party to the other in connection with the arbitration shall
be in writing and shall be made as provided in this Employment Agreement. 

  

	(c)	The Arbitrators shall hold their sittings at Mumbai. 

 IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the day and year first herein above written. 

 

	
	By: MR. SUNIL LULLA
	
	/s/ Sunil Lulla
	
	In the presence of:

 1. Mr Farokh P Gandhi (CA) 
 EROS INTERNATIONAL MEDIA PRIVATE LIMITED 

			
		
	By:	 	/s/ Jyoti Deshpande
	Name:	 	Mrs Jyoti Deshpande
	Title:	 	Director

 Authorised by Resolution of the Board 
 of Directors passed at its meeting held 
 on September 29, 2009 at Mumbai. 

In the presence of: 
 2. Mr. Anand Shankar
(Vice President-Finance) 

  
 8 

 SCHEDULE I 
 COMPENSATION STRUCTURE 
  

									
	 Component of Compensation
	  	Annual in
Rupees	 	  	Monthly in
Rupees	 
	 Basic Salary
	  	 	60,00,000	  	  	 	5,00,000	  
	 Retirals—Gratuity at 15 days Basic Salary
	  	 	2,50,000	  	  	 	—  	  
	 Conveyance and Car Reimbursement
	  	 	15,00,000	  	  	 	1,25,000	  
	 Medical Reimbursement*
	  	 	15,000	  	  	 	1,250	  
	 Special Pay
	  	 	1,04,85,000	  	  	 	8,73,750	  
	 Company Rent Accommodation**
	  	 	36,00,000	  	  	 	3,00,000	  
		  	  
	  
	 	  	  
	  
	 
	 TOTAL
	  	 	2,18,50,000	  	  	 	18,00,000	  
		  	  
	  
	 	  	  
	  
	 

  

	*	Medical Insurance for the Executive and his spouse shall be paid by the Company for an amount to be decided as per the Company’s policy in this regard.

	**	The Company shall pay to the lessor an interest free refundable deposit of Rs. 2,90,00,000/- ( Rupees Two Crore Ninety Lacs Only) and annual lease rental to the lessor
@ Rs. 3,00,000/- per month (Rupees Three Lacs Only), subject to Tax deduction at source towards securing rented accommodation in Mumbai Suburbs to be provided to SL. 

 In addition, the Executive shall be eligible for the following: 
  

	 	1.	SL, will be provided with a club membership, taken by the company for the use of directors/executives of the company from any of the reputed clubs.

  

	 	2.	All expenses relating to telephone at residence, mobile bills, PDA charges and other expenses incurred by the SL for the purpose of the business of the Company shall be
reimbursed by the Company on actual. 

  

	 	3.	SL will be provided with company owned cars for the purpose of the business of the company. 

 

	 	4.	SL shall be entitled to leave including casual and sick leave in accordance with the Company’s applicable leave and service rules for the senior management
employees of the company. 

  

	 	5.	SL shall be entitled to leave travel allowances in accordance with the company’s applicable leave travel allowances rules. 

[SEVERAL STAMPS] 

  
 9

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