Document:

Exhibit 10.14

 

SHARE SUBSCRIPTION AGREEMENT

 

BY AND BETWEEN

 

Amira Nature Foods Ltd

 

AND

 

Amira Pure Foods Private Limited

 

 

SHARE SUBSCRIPTION AGREEMENT

 

THIS SHARE SUBSCRIPTION AGREEMENT (“Agreement”) is executed at [·] on this [·] day of [·], 2012 by and among:

 

AMIRA NATURE FOODS LTD, a company incorporated and registered under the provisions of the Republic of Mauritius, acting through its authorized signatory Mr. [·], authorized by resolution dated [·], having its registered office at [·], Mauritius  (“Acquirer”, which expression shall unless repugnant to the context or meaning thereof include its successors in interest, representatives and nominees) of the FIRST PART;

 

AND

 

AMIRA PURE FOODS PRIVATE LIMITED, a company incorporated and registered under the provisions of the Companies Act, 1956, acting through its authorized signatory Mr. [·], authorized by resolution dated [·], having its registered office at B-1/E-28, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi 110044, India  (“Company”, which expression shall unless repugnant to the context or meaning thereof include its successors in interest, representatives and nominees) of the SECOND PART;

 

The Acquirer and the Company are individually referred to as “Party” and collectively referred to as “Parties”.

 

WHEREAS:

 

A.                                    The Company is a private limited company in India, engaged in the business of processing and selling food products, including basmati and other specialty rice. The present issued and paid-up share capital of the Company aggregates to 12,979,975 fully paid up equity shares of par value 10 each, amounting to ` 129,799,750.

 

B.                                    The Acquirer is a company in Mauritius, and seeks to subscribe to [·] equity shares of face value ` 10 each, of the Company, representing [not less than 50.1%] of the fully diluted equity share capital of the Company (“Shares”).

 

C.                                    Accordingly, on the basis of the representations, warranties and covenants made by the Parties to each other and other good and valuable consideration (the adequacy of which is hereby mutually acknowledged) as recorded in this Agreement, the Parties are entering into this Agreement to record the terms and conditions governing the issuance of the Shares to the Acquirer.

 

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

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

For the purposes of this Agreement, in addition to the terms defined in the description of Parties to this Agreement and the Recitals above, whenever used in this Agreement, unless repugnant to the meaning or context thereof, the following expressions shall have the following meanings:

 

“Acquirer”  has the meaning assigned to it in paragraph 1 of the description of the Parties above;

 

“Agreement” means this Share Subscription Agreement and all instruments supplemental to or amending, modifying or confirming this Agreement in accordance with the provisions of this Agreement;

 

“Applicable  Law(s)”  means all applicable laws, bye-laws, statutes, rules, regulations, orders, ordinances, notifications, protocols, treaties, codes, guide-lines, policies, notices, directions, writs, injunctions, judgments, decrees or other requirements or official directive of any court of competent authority or of any competent governmental authority or person acting under the authority of any court of competent authority or of any competent governmental authority of the Republic of India, whether in effect on the date of this Agreement or thereafter;

 

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“Business  Day” means any day of the week (excluding Saturdays, Sundays and public holidays) on which commercial banks are open for business in India and Mauritius;

 

“Closing” means the completion, fulfilment and execution in entirety of the actions required to be completed on the Closing Date as provided in Clause 5;

 

“Closing Date” has the meaning assigned to it in Clause 5.1;

 

“Company”  has the meaning assigned to it in paragraph 2 of the description of the Parties above;

 

“Consideration”  has the meaning assigned to it in Clause 3.1;

 

“Dispute”  has the meaning assigned to it in Clause 9.2;

 

“Disputing Parties”  has the meaning assigned to it in Clause 9.2;

 

“Encumbrances”  means any mortgage, pledge, equitable interest, assignment by way of security, conditional sales contract, hypothecation, right of other Persons, claim, security interest, encumbrance, title defect, title retention agreement, voting trust agreement, interest, option, lien, charge, commitment, restriction or limitation of any nature whatsoever, including restriction on use, voting rights, transfer, receipt of income or exercise of any other attribute of ownership, right of set-off, any arrangement (for the purpose of, or which has the effect of, granting security), or any other security interest of any kind whatsoever, or any agreement, whether conditional or otherwise, to create any of the same;

 

“Party(ies)” has the meaning assigned to it in the preamble to this Agreement;

 

“Person(s)” means any individual, sole proprietorship, unincorporated association, body corporate, corporation, company, partnership, limited liability company, joint venture, governmental authority or trust or any other entity or organization that may be treated as an entity under Applicable Laws;

 

“Rupees” and “`”  shall mean the lawful currency of India;  and

 

“Shares” has the meaning assigned to it in Recital B.

 

1.2                               Interpretation

 

1.2.1                     References to this Agreement or to any other instrument shall be a reference to this Agreement or that other instrument as amended, varied, novated, or substituted from time to time.

 

1.2.2                     The headings in this Agreement are for ease of reference only and shall not affect the interpretation or construction of this Agreement.

 

1.2.3                     References to Recitals and Clauses are references to recitals and clauses of this Agreement.

 

1.2.4                     Words importing the singular shall include the plural and vice versa and words importing the masculine gender shall include the feminine and the neuter gender and vice versa.

 

1.2.5                     Any references to a “company” shall include a body corporate.

 

1.2.6                     The words “include”, “including” and “in particular” shall be construed as being by way of illustration or emphasis only and shall not be construed as, nor shall they take effect as, limiting the generality of any preceding words.

 

1.2.7                     References to a person shall be construed so as to include an:

 

(a)         individual, firm, partnership, trust, company, corporation, body corporate, unincorporated body, association, organisation, any government, or state or any agency of a government or state, or any local or municipal authority or other governmental body (whether or not in each case having separate legal personality); and

 

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(b)         that person’s successors in title and assigns or transferees permitted in accordance with the terms of this Agreement; and

 

1.2.10             References to a person’s representatives shall be to its officers, employees, sub-contractors, agents and other duly authorized representatives.

 

1.2.11             References to statutory provisions shall be construed as references to those provisions as are respectively amended or re-enacted or as their application is modified by other provisions (whether before or after the date of this Agreement) from time to time and shall include any provisions of which they are re-enactments (whether with or without modification).

 

1.2.12             All warranties, representations, indemnities, covenants, guarantees, stipulations, undertakings, agreements and obligations given or entered into by more than one person are given or entered into severally unless otherwise specified.

 

1.2.13             In the event that the date on which any act or obligation specified in this Agreement to be performed falls on a day which is not a Business Day, then the date on which the act or obligation is to be effected or performed shall take place on the next Business Day.

 

2.                                     SUBSCRIPTION TO AND ISSUANCE OF THE SHARES

 

Subject to the terms and conditions of this Agreement, the Company hereby agrees to issue and allot the Shares to the Acquirer, free and clear of all Encumbrances, and the Acquirer hereby agrees to subscribe to and receive the entire right, title and interest in the Shares on the Closing Date.

 

3.                                      PAYMENT & OTHER OBLIGATIONS

 

3.1.                            The issuance of the Shares by the Company to the Acquirer shall be for a price per Share of [·], such that the  aggregate consideration payable by the Acquirer shall be [·] (“Consideration”). This price per Share has been calculated in accordance with the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations 2000 and the Circular 1 of 2012 on consolidated foreign direct investment policy issued by the Government of India, and such price has been certified as the fair valuation for the Shares by a SEBI registered category-I merchant banker and a chartered accountant as per the discounted free cash flow method, pursuant to their letters dated [·] and [·], respectively.

 

3.2.                            The Consideration shall be discharged by the Acquirer subject to Applicable Law, by means of transfer of funds through normal banking channels or by debit to the NRE/FCNR account maintained with an authorised dealer/bank, provided that the Company shall intimate the Acquirer in writing of the details of the bank account(s) in which the Consideration is required to be transferred.

 

4.                                      COVENANTS OF THE COMPANY

 

The Company shall take all necessary steps required under Applicable Laws to consummate the transactions contemplated under this Agreement, including but not limited to obtaining all corporate authorizations and making all necessary filings with the Reserve Bank of India, in the prescribed form and within the stipulated time, in order to fulfill reporting requirements prescribed under Applicable Law, including filing of the forward inward remittance certificate and Form FC-GPR through the authorised dealer.

 

5.                                      CLOSING MECHANISM

 

5.1                               Closing shall take place on or about [·], 2012, or such other date as may mutually agreed between the Acquirer and the Company in writing (“Closing Date”), provided that such date shall not be later than the expiry of thirty (30) days from the date of this Agreement, i.e. not later than [·], 2012, at the offices of the Company or such other address as the Parties may agree.

 

5.2                               On the Closing Date, the following actions shall occur in the following order:

 

(i)             The Acquirer shall remit the Consideration to the Company in accordance with Clause 3;

 

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(ii)          The Company shall convene a meeting of its board of directors, or a duly authorised committee thereof, at which resolutions shall be passed for issuance and allotment of the Shares to the Acquirer and certain persons will be authorised to perform all actions to effect such resolution, including but not limited to making necessary entries in the Company’s register of members to record the issuance of the Shares in the name of the Acquirer and undertake all other actions that may be required under the memorandum of association and articles of association of the Company or any Applicable Law for the time being in force, for the consummation of the transaction contemplated in this Agreement; and

 

(a)         The Company shall deliver the duly executed and stamped share certificates evidencing the Shares (the stamp duty expenses in respect of which shall be borne by the Acquirer) to the Acquirer.

 

5.3                               The Company shall extend all necessary cooperation to the Acquirer, including execution of documents, deeds and undertakings, as required in respect of the issuance of the Shares by the Company to the Acquirer, in accordance with the terms of this Agreement.

 

6.                                      REPRESENTATIONS AND WARRANTIES

 

6.1                               Each Party hereby severally represents and warrants to the other Party as follows:

 

6.1.1                     It is duly incorporated and validly existing and has full corporate power and authority to enter into this Agreement and to perform its obligations under this Agreement, in accordance with its terms;

 

6.1.2                    This Agreement constitutes a legal, valid and binding obligation on the Party, enforceable against it in accordance with its terms;

 

6.1.3                     Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated under this Agreement will (a) contravene, violate or result in a breach or default under any provision of Applicable Law; (b) conflict with or result in the breach of any provision of its memorandum or articles of association or other charter documents, as applicable; or (b) result in a default under or give rise to any right of termination, cancellation or acceleration or require any consent of any third party under the terms of any agreement, instrument or obligation to which a Party or any of its properties or assets may be bound, except where any such necessary consent or waiver has been duly obtained by the relevant Party; or (c) result in a Party becoming the subject matter of any suit, attachment, acquisition, requisition or court proceedings, either civil or criminal or formal or informal, either directly or indirectly, whether pending or threatened, which could reasonably be expected to restrict, prohibit or prevent it from fulfilling its obligations set out in this Agreement.

 

6.1.4                     All representations and warranties made by the Party in this Agreement are valid and subsisting as on the date of this Agreement, and shall continue to be valid and subsisting as on the Closing Date, as if they were made on such date; and

 

6.2                               In addition to the representations and warranties contained in Clause 6.1, the Company hereby represents and warrants to the Acquirer that the Shares shall be duly and validly issued by it, free from any Encumbrances, and no other party has or shall have any claim, right or interest in respect of the Shares.

 

6.3                               Each of the representations and warranties shall be construed as a separate representation, warranty, covenant or undertaking, as the case may be, and shall not be limited by the terms of any other representation or warranty or by any other term of this Agreement.

 

7.                                      INDEMNITY

 

7.1                               Each Party hereby undertakes to indemnify, and to keep indemnified, the other Party and its affiliates against all losses or liabilities (including any loss of profit, loss of reputation, damages, claims, demands, proceedings, costs, expenses, penalties and legal and other professional fees and costs) which may be suffered or incurred by any of them and which arise on account of or in connection with a material breach or non-observance of the terms of this Agreement, including any breach or non-

 

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observance of any representation or warranty made by such Party in this Agreement, or any such representation or warranty being found to misleading or untrue.

 

7.2                               Notwithstanding anything contained in Clause 7.1, no Party shall be liable to the other Party for any indirect or consequential damages in any manner or form arising from this Agreement, irrespective of whether such liability may be based on contract or tort (including negligence) or otherwise.

 

8.                                      MISCELLANEOUS

 

8.1                               Expenses

 

Each of the Parties shall pay their respective taxes, legal, accounting and other professional advisory fees and expenses incurred in connection with the preparation, execution, delivery and performance of this Agreement.

 

8.2                               Term & Expiration

 

8.2.1                     On the occurrence of the Closing on the Closing Date, this Agreement shall automatically terminate without any further action being required by any Party, provided that this Agreement may be terminated at any time prior to the Closing, subject to mutual agreement between each of the Parties in writing.

 

8.2.2                     This Agreement shall automatically terminate in its entirety, without requiring any further action by any Party, if the Closing has not taken place on or before [·], 2012, and all the rights and obligations of the Parties shall be deemed to have terminated.

 

8.2.3                     Notwithstanding anything to the contrary set forth above, Clauses 6, 7, 8 and 9 shall survive the expiration or termination of this Agreement.

 

8.3                               Further Assurances

 

The Parties shall, with reasonable diligence, do all such things and provide all reasonable assurances as may be required to consummate the transactions contemplated by this Agreement in the manner contemplated herein, and each Party shall provide such further documents or instruments required by the other Party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Closing.

 

8.4                               Notices

 

Any notices, requests, demands or other communication required or permitted to be given under this Agreement shall be written in English and delivered in person, or sent by courier or by certified or registered mail, postage prepaid or transmitted by facsimile and properly addressed as follows:

 

(i)        In case of notices to the Acquirer, to:

 

Name: [·]

Address: [·]

Attention: [·]

Facsimile: [·]

 

(ii)       In case of notices to the Company, to:

 

Name: Amira Pure Foods Private Limited

Address: 54, Prakriti Marg, M.G. Road, New Delhi 110030, India

Attention: Company Secretary

Facsimile: +91 11 4605 7570

 

or at such other address as the Party to whom such notices or other communication is to be given shall have last notified the other Party in the manner provided in this Clause, but no such change of address shall be deemed to have been given until it is actually received by the Party sought to be charged with

 

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the knowledge of its contents. Any notice, request, demand or other communication delivered to the Party to whom it is addressed as provided in this Clause shall be deemed to have been given and received on the day of its receipt at such address.

 

8.5                               Entire Understanding

 

This Agreement constitutes the whole agreement between the Parties and supersedes any previous written or oral agreements between the Parties in relation to the matters dealt with in this Agreement.

 

8.6                               Assignment

 

No Party may assign and transfer any of its rights under this Agreement in whole or in part without the written consent of the other Party.

 

8.7                               Amendments

 

No amendment, supplement, modification or clarification to this Agreement shall be valid or binding unless set forth in writing and duly executed by each of the Parties to this Agreement.

 

8.8                               Waiver, Rights and Remedies

 

No failure of delay by any Party in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof. No single or partial exercise of any right, power or remedy under this Agreement shall preclude the exercise of any other right, power or remedy under this Agreement by that Party. Without limiting the foregoing, no waiver by any Party of a breach by the other Party of any provision of this Agreement shall be deemed to be a waiver of any subsequent breach of that or any other provision of this Agreement.

 

8.9                               Severability

 

If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, such invalidity or enforceability shall attach only to such provision or the applicable part of such provision and the remainder of this Agreement shall remain in full force and effect.

 

8.10                        Exclusivity

 

During the term of this Agreement, no Party shall, directly or indirectly, enter into any negotiation, transaction, arrangement, understanding or scheme of any nature with anyone other than the other Party in relation to the transaction with respect to the Shares provided for in this Agreement. The Parties further agree not to pursue, for the term of this Agreement, any transaction or opportunity that would preclude or frustrate the purpose of the transaction with respect to the Shares under this Agreement.

 

9.                                      GOVERNING LAW; ARBITRATION

 

9.1                               Governing Law & Jurisdiction

 

This Agreement shall be governed by and construed in accordance with the laws of the Republic of India. The courts in New Delhi shall have exclusive jurisdiction over any disputes arising out of or in connection with this Agreement.

 

9.2                               Arbitration

 

In the event a dispute arises out of or in connection with the validity, interpretation, implementation or alleged breach of this Agreement (“Dispute”), the parties to such Dispute (“Disputing Parties”) shall attempt in the first instance to resolve such Dispute through amicable negotiations. If the Dispute is not resolved through negotiations within seven Business Days after commencement of discussions (or such longer period as the Disputing Parties may agree to in writing), any Disputing Party may by notice in writing to each of the other Disputing Parties, refer the Dispute for resolution by binding arbitration under the LCIA Rules (“Rules”), which Rules are deemed to be incorporated by reference into this clause, provided that in the event of conflict between the Rules and this Clause 9.2, the latter shall

 

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prevail. The arbitration shall be conducted by a panel of three arbitrators at London, United Kingdom, in the English language. The claimant in any such arbitration shall appoint one arbitrator and the respondent in such arbitration shall appoint one arbitrator. The two arbitrators so appointed shall jointly appoint a third arbitrator. Notwithstanding the power of the arbitrators to grant interim relief, the Disputing Parties shall have the power to seek appropriate interim relief from the courts of India. The arbitration shall be governed by the Arbitration and Conciliation Act, 1996 as amended (“Act”), and the procedure to be followed shall be as laid out in the Act.

 

IN WITNESS WHEREOF, the Parties have entered into this Agreement the day and year first above written.

 

	
By and on behalf   of Amira Nature Foods Ltd  
    	
By and on behalf   of Amira Pure Foods Private Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
Authorized   Signatory
    	
Authorized   Signatory
    
	
Name:
    	
Name:
    
	
Designation:
    	
Designation:
    
	
Date:
    	
Date:
    

 

	
Witnessed by:  
    	
Witnessed by:  
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
Name:
    
	
Address:
    	
Address:
    
	
Date: 
    	
Date: 
    

 

8Exhibit 10.15

 

AMIRA NATURE FOODS LTD

 

INDEMNIFICATION AGREEMENT

 

THIS AGREEMENT is entered into, effective as of                        by and between Amira Nature Foods Ltd (the “Company”), a company incorporated under the laws of the British Virgin Islands (“BVI”) with registered number 1696728, and                                  (“Indemnitee”), effective as of the date that the Registration Statement on Form F-1 related to the initial public offering of the Company’s Ordinary Shares is declared effective by the United States Securities and Exchange Commission.

 

WHEREAS, it is essential to the Company to retain and attract as directors and officers the most capable persons available;

 

WHEREAS, Indemnitee is a director and/or officer of the Company;

 

WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other claims currently being asserted against directors and officers of corporations;

 

WHEREAS, the Amended and Restated Memorandum and Articles of Association of the Company allow the Company to indemnify and advance expenses to its directors and officers, and the Indemnitee has been serving and continues to serve as a director and/or officer of the Company in accordance with the Company’s Amended and Restated Memorandum and Articles of Association (the “Memorandum and Articles”); and

 

WHEREAS, in recognition of the Company’s desire to continue to retain the services of Indemnitee as a director and/or officer of the Company, and of the Indemnitee’s need for (i) substantial protection against personal liability based on Indemnitee’s reliance on the Company’s ability to indemnify the Indemnitee under the aforesaid Memorandum and Articles, (ii) specific contractual assurance that the protection allowed by the Memorandum and Articles will be available to Indemnitee (regardless of, among other things, any amendment to or revocation of the Memorandum and Articles or any change in the composition of the Company’s Board of Directors or acquisition transaction relating to the Company) and (iii) an inducement to continue to provide services to the Company as a director and/or officer, the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under BVI law and as set forth in this Agreement, and, to the extent insurance is maintained, to provide for the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability insurance policies.

 

NOW, THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve the Company directly or, at its request, with another enterprise, and intending to be legally bound hereby, the parties agree as follows:

 

1.                                      Certain Definitions:

 

(a)                                 “Board” shall mean the Board of Directors of the Company.

 

 

(b)                                 “Affiliate” shall mean any corporation or other person or entity that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with, the person specified, including, without limitation, with respect to the Company, any direct or indirect subsidiary of the Company.

 

(c)                                  A “Change in Control” shall be deemed to have occurred if (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “  Exchange Act “)) (other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company, and other than any person who is “beneficial owner”, as defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of securities of the Company representing 5% or more of the total voting power represented by the Company’s then outstanding Voting Securities on the date that the Company first registers under the Act, or any transferee of such individual if such transferee is a spouse or lineal descendant of the transferee or a trust for the benefit of the individual, his or her spouse or lineal descendants), is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board, (iii) the shareholders of the Company approve a merger or consolidation of the Company with any other entity, other than a merger or consolidation that would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (iv) the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of the Company’s assets.

 

(d)                                 “Expenses” shall mean any expense, liability or loss, including attorneys’ fees, judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any interest, assessments or other charges imposed thereon, any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement and all other costs and obligations, paid or incurred in connection with investigating, defending, being a witness in, participating in (including on appeal) or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable Event.

 

(e)                                  “Indemnifiable Event” shall mean any event or occurrence that takes place either prior to or after the execution of this Agreement, related to the fact that Indemnitee is or was a director or officer of the Company or an Affiliate of the Company, or while a director or officer is or was serving at the request of the Company or an Affiliate of the Company as a director, officer, employee, trustee, agent or fiduciary of another foreign or domestic corporation, partnership, joint venture, employee benefit plan, trust or other enterprise or was a director,

 

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officer, employee or agent of a foreign or domestic corporation that was a predecessor corporation of the Company or of another enterprise at the request of such predecessor corporation, or related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is alleged action in an official capacity as a director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent of the Company or an Affiliate of the Company, as described above.

 

(f)                                   “Independent Counsel” shall mean the person or body appointed in connection with Section 3.

 

(g)                                  “Proceeding” shall mean any threatened, pending or completed action, suit or proceeding or any alternative dispute resolution mechanism (including an action by or in the right of the Company or an Affiliate of the Company) or any inquiry, hearing or investigation, whether conducted by the Company or an Affiliate of the Company or any other party, that Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding, whether civil, criminal, administrative, investigative or other.

 

(h)                                 “Reviewing Party” shall mean the person or body appointed in accordance with Section 3.

 

(i)                                     “Voting Securities” shall mean any shares or other securities of the Company that vote generally in the election of directors.

 

2.                                      Agreement to Indemnify.

 

(a)                                 General Agreement.  In the event Indemnitee was, is or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee from and against any and all Expenses to the fullest extent permitted by law, as the same exists or may hereafter be amended or interpreted (but in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto).  The parties hereto intend that this Agreement shall provide for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Company’s Memorandum and Articles, vote of its shareholders or disinterested directors or applicable law, but at all times subject to any prohibitions, restrictions and limitations provided by applicable law.

 

(b)                                 Initiation of Proceeding.  Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the Company, unless (i) the Company has joined in or the Board has consented to the initiation of such Proceeding, (ii) the Proceeding is one to enforce indemnification rights under Section 5, (iii) the Proceeding is instituted after a Change in Control (other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control) or (iv) Independent Counsel has approved its initiation.  In all such cases, the Indemnitee shall have acted honestly and in good faith in what the Indemnitee

 

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believed to be in the best interests of the Company and, in the case of criminal proceedings, the Indemnitee had no reasonable cause to believe that his conduct was unlawful.

 

(c)                                  Expense Advances.  If so requested by Indemnitee, the Company shall advance (within thirty (30) days of such request) any and all Expenses to Indemnitee (an “Expense Advance”).  The Indemnitee shall qualify for such Expense Advances upon the execution and delivery to the Company of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to repay such Expense Advances if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not entitled to be indemnified by the Company.  Indemnitee’ s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.  This Section 2(c) shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 2(b) or 2(f).

 

(d)                                 Mandatory Indemnification.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, Indemnitee shall be indemnified against all Expenses incurred in connection therewith.

 

(e)                                  Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

(f)                                   Prohibited Indemnification.  No indemnification pursuant to this Agreement shall be paid by the Company on account of any Proceeding in which a final judgment is rendered against Indemnitee or Indemnitee enters into a settlement, in each case (i) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or (ii) for which payment is prohibited by law.

 

3.                                      Reviewing Party.  Prior to any Change in Control, the Reviewing Party shall be any appropriate person or body consisting of a member or members of the Board or any other person or body appointed by the Board who is not a party to the particular Proceeding with respect to which Indemnitee is seeking indemnification; provided that if all members of the Board are parties to the particular Proceeding with respect to which Indemnitee is seeking indemnification, the Independent Counsel referred to below shall become the Reviewing Party; after a Change in Control, the Independent Counsel referred to below shall become the Reviewing Party.  With respect to all matters arising before a Change in Control for which Independent Counsel shall be the Reviewing Party and all matters arising after a Change in Control, in each case concerning the rights of Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement or under applicable law or the Company’s Amended and Restated Memorandum and Articles of Association now or hereafter in effect relating to indemnification for Indemnifiable Events, the Company shall seek legal advice only from Independent Counsel selected by Indemnitee and approved by the Company

 

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(which approval shall not be unreasonably withheld or delayed), and who has not otherwise performed services for the Company or the Indemnitee (other than in connection with indemnification matters) within the last five years.  The Independent Counsel shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’ s rights under this Agreement.  Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee should be permitted to be indemnified under applicable law.  The Company agrees to pay the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or relating to this Agreement or the engagement of Independent Counsel pursuant hereto.

 

4.                                      Indemnification Process and Appeal.

 

(a)                                 Indemnification Payment.  Indemnitee shall be entitled to indemnification of Expenses, and shall receive payment thereof, from the Company in accordance with this Agreement as soon as practicable after Indemnitee has made written demand on the Company for indemnification, but in no event later than thirty (30) business days after demand, unless the Reviewing Party has given a written opinion to the Company that Indemnitee is not entitled to indemnification under applicable law.  Indemnitee shall cooperate with the Reviewing Party making a determination with respect to Indemnitee’ s entitlement to indemnification, including providing to the Reviewing Party upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.

 

(b)                                 Suit to Enforce Rights.  Regardless of any action by the Reviewing Party, if Indemnitee has not received full indemnification within thirty (30) days after making a demand in accordance with Section 4(a), Indemnitee shall have the right to enforce its indemnification rights under this Agreement by commencing litigation in any court in the State of Delaware having subject matter jurisdiction thereof seeking an initial determination by the court or challenging any determination by the Reviewing Party or any aspect thereof.  The Company hereby consents to service of process and to appear in any such proceeding.  Any determination by the Reviewing Party not challenged by the Indemnitee shall be binding on the Company and Indemnitee.  The Company shall be precluded from asserting in any such proceeding that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.  The remedy provided for in this Section 4 shall be in addition to any other remedies available to Indemnitee at law or in equity.

 

(c)                                  Defense to Indemnification, Burden of Proof, and Presumptions.  It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in advance of its final disposition) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed.  In connection with any such action or any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proving such a defense or determination shall be on the Company.  Neither the failure of the Reviewing Party or the Company (including its

 

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Board, independent legal counsel or its shareholders) to have made a determination prior to the commencement of such action by Indemnitee that indemnification of the claimant is proper under the circumstances because Indemnitee has met the standard of conduct set forth in applicable law, nor an actual determination by the Reviewing Party or Company (including its Board, independent legal counsel or its shareholders) that the Indemnitee had not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct.  For purposes of this Agreement, the termination of any claim, action, suit or proceeding, by judgment, order, settlement (whether with or without court approval), conviction or upon a plea of nolo contendere or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law.  For purposes of any determination of good faith under any applicable standard of conduct, Indemnitee shall be deemed to have acted in good faith if Indemnitee’ s action is based on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the officers of the Company in the course of their duties, or on the advice of legal counsel for the Company or the Board or counsel selected by any committee of the Board or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser, investment banker or other expert selected with reasonable care by the Company or the Board or any committee of the Board.  The provisions of the preceding sentence shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct.  The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

5.                                      Indemnification for Expenses Incurred in Enforcing Rights.  The Company shall indemnify Indemnitee against any and all Expenses that are incurred by Indemnitee in connection with any action brought by Indemnitee for

 

(i)                                     indemnification or advance payment of Expenses by the Company under this Agreement or any other agreement or under applicable law or the Company’s Amended and Restated Memorandum and Articles of Association now or hereafter in effect relating to indemnification for Indemnifiable Events, and/or

 

(ii)                                  recovery under directors’ and officers’ liability insurance policies maintained by the Company;

 

but, in each case, only in the event that Indemnitee ultimately is determined to be entitled to such indemnification or insurance recovery, as the case may be.  In addition, the Company shall, if so requested by Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and in accordance with Section 2(c).

 

6.                                      Notification and Defense of Proceeding.

 

(a)                                 Notice.  Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof;

 

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but the omission so to notify the Company will not relieve the Company from any liability that it may have to Indemnitee, except as provided in Section 6(c).

 

(b)                                 Defense.  With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise provided below.  Indemnitee shall have the right to employ legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’ s expense unless: (i) the employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, (iii) after a Change in Control, the employment of counsel by Indemnitee has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by the Company.  The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall have made the determination provided for in (ii) above or under the circumstances provided for in (iii) and (iv) above.

 

(c)                                  Settlement of Claims.  The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the Company’s written consent, such consent not to be unreasonably withheld; provided, however, that if a Change in Control has occurred, the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement.  The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’ s written consent.  The Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity as a result of Indemnitees’ failure to provide notice, at its expense, to participate in the defense of such action, and the lack of such notice materially prejudiced the Company’s ability to participate in defense of such action.  The Company’s liability hereunder shall not be excused if participation in the Proceeding by the Company was barred by this Agreement.

 

7.                                      Establishment of Trust.  In the event of a Change in Control, the Company shall, upon written request by Indemnitee, create a Trust for the benefit of the Indemnitee and from time to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, participating in, and/or defending any Proceeding relating to an Indemnifiable Event.  The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the Independent Counsel.  The terms of the Trust shall provide that (i) the Trust shall not be revoked or the principal thereof invaded without the written consent of the Indemnitee, (ii) the Trustee shall

 

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advance, within thirty (30) days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the same circumstances for which the Indemnitee would be required to reimburse the Company under Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by the Company in accordance with the funding obligation set forth above, (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise no later than thirty (30) days after notice pursuant to Section 4(a) and (v) all unexpended funds in the Trust shall revert to the Company upon a final determination by the Independent Counsel or a court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement.  The Trustee shall be chosen by the Indemnitee.  Nothing in this Section 7 shall relieve the Company of any of its obligations under this Agreement.  All income earned on the assets held in the Trust shall be reported as income by the Company for federal, state, local and foreign tax purposes.  The Company shall pay all costs of establishing and maintaining the Trust and shall indemnify the Trustee against any and all expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or relating to this Agreement or the establishment and maintenance of the Trust.

 

8.                                      Non-Exclusivity.  The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Company’s Memorandum and Articles, applicable law or otherwise; provided, however, that this Agreement shall supersede any prior indemnification agreement between the Company and the Indemnitee.  To the extent that a change in applicable law (whether by statute or judicial decision) permits greater indemnification than would be afforded currently under the Memorandum and Articles, applicable law or this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change.

 

9.                                      Liability Insurance.  To the extent the Company maintains an insurance policy or policies providing general and/or directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any Company director or officer.

 

10.                               Period of Limitations.  No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any Affiliate of the Company against Indemnitee, Indemnitee’ s spouse, heirs, executors or personal or legal representatives after the expiration of two (2) years from the date of accrual of such cause of action or such longer period as may be required by state law under the circumstances.  Any claim or cause of action of the Company or its Affiliate shall be extinguished and deemed released unless asserted by the timely filing and notice of a legal action within such period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, the shorter period shall govern.

 

11.                               Amendment of this Agreement.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver

 

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constitute a continuing waiver.  Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

 

12.                               Subrogation.  In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

13.                               No Duplication of Payments.  The Company shall not be liable under this Agreement to make any payment in connection with any claim made against Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts otherwise indemnifiable hereunder.

 

14.                               Duration of Agreement.  This Agreement shall continue until and terminate upon the later of (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or (b) one (1) year after the final termination of any Proceeding, including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 4(b) of this Agreement relating thereto.

 

15.                               Binding Effect.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.  The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though Indemnitee may have ceased to serve in such capacity at the time of any Proceeding.

 

16.                               Severability.  If any provision (or portion thereof) of this Agreement shall be held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, (a) the remaining provisions shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void or unenforceable.

 

17.                               Contribution.  To the fullest extent permissible under applicable law, whether or not the indemnification provided for in this Agreement is available to Indemnitee for any reason

 

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whatsoever, the Company shall pay all or a portion of the amount that would otherwise be incurred by Indemnitee for Expenses in connection with any claim relating to an Indemnifiable Event, as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

18.                               Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such State without giving effect to its principles of conflicts of laws.  The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement may be brought in the Delaware Court of Chancery, (ii) consent to submit to the jurisdiction of the Delaware Court of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii)waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court of Chancery has been brought in an improper or inconvenient forum.

 

19.                               Notices.  All notices, demands and other communications required or permitted hereunder shall be made in writing and shall be deemed to have been duly given if delivered by hand, against receipt or mailed, postage prepaid, certified or registered mail, return receipt requested and addressed to the Company at:

 

Amira Nature Foods Ltd
 29E, A.U. Tower
 Jumeirah Lake Towers
 Dubai, UAE

 

Attention: Chief Executive Officer

 

and to Indemnitee at:

 

the address set forth below Indemnitee’ s signature hereto.  Notice of change of address shall be effective only when given in accordance with this Section.  All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing.

 

20.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the day specified above.

 

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AMIRA NATURE FOODS LTD
    
	
 
    	
a BVI   business company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Print   Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE,
    
	
 
    	
an   individual
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address   for notices:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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