Document:

EX-10.1

 Exhibit 10.1 

March 15, 2016 

CONFIDENTIALITY AGREEMENT 
 Pierre
Mestre 
 Chairman and President 
 Orchestra-Prémaman,
S.A. 
 ZAC Saint-Antoine 
 200 avenue des Tamaris 

34130 SAINT AUNES 
 France 

Email: pmestre@orchestra-premaman.com 
 Dear Sirs: 

PRIVATE AND CONFIDENTIAL 
 In connection with
Orchestra-Prémaman, S.A.’s (“you” or “your”) proposal of a possible transaction (the “Transaction”) involving Destination Maternity Corporation (the “Company”), the Company and its Representatives
(as defined below), including Guggenheim Securities, LLC (“Guggenheim”), will make available to you certain information which is non-public, confidential or proprietary in nature. 

1. By execution of this letter agreement (the “Agreement”), you agree, subject to the terms and conditions hereof, to treat confidentially any such
information that you or your Representatives are provided by or on behalf of the Company (collectively, the “Evaluation Material”). The term “Evaluation Material” shall also include all reports, analyses, notes or other
information that are based on, contain or reflect any Evaluation Material (“Notes”). The term “Evaluation Material” does not include information that (i) is now or becomes generally available to the public other than as a
result of a disclosure by you or any of your Representatives in violation of this Agreement, (ii) was available to you prior to the disclosure of such Evaluation Material to you pursuant to this Agreement, provided that you do not know or have
a reasonable basis to believe that the source of such information is bound by a confidentiality obligation owed to the Company with respect to such information, (iii) becomes available to you on from a source other than the Company or any of
its Representatives, provided that you do not know or have a reasonable basis to believe that such source is bound by a confidentiality obligation owed to the Company with respect to such information, or (iv) is or was independently developed
by you or any of your Representatives without use of or reference to the Evaluation Material. In addition, the term “Evaluation Material” does not include the fact that discussions or negotiations with the Company and its Representatives
are or were taking place concerning a possible Transaction, that you have received Evaluation Material (without disclosing the nature or content of such Evaluation Material) or that you are evaluating a possible Transaction. The term
“Representative” means, as to any person, such person’s Affiliates (as defined below) and its and their respective directors, officers, employees, attorneys, accountants, bankers, financial sources, agents, representatives and
advisors. As used herein, the term “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). The Company agrees that, as promptly as practicable, it will (i) provide you with the Evaluation Material set forth on Annex A hereto (the 

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March 15, 2016 
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 “Agreed Evaluation
Material”), and (ii) use reasonable best efforts (including by providing reasonable access during normal business hours to the executive officers of the Company, provided that such access shall not disrupt the operations of the Company) to
provide you with such additional documents and information as you may reasonably request. 
 2. You agree that, except as otherwise set forth in this
Agreement, you will not use the Evaluation Material for any purpose other than evaluating, negotiating, documenting, pursuing or consummating a possible Transaction (whether in a negotiated transaction or otherwise). You agree not to disclose any
Evaluation Material to any person, except that you may disclose Evaluation Material to your Representatives (who will be informed by you of the confidential nature of the Evaluation Material and will agree to be bound by the terms of this Agreement
that are applicable to your Representatives) who are participating in your evaluation, negotiation, documentation, pursuit or consummation of a possible Transaction (whether in a negotiated transaction or otherwise) or who otherwise have a
reasonable need to review the Evaluation Material for the purpose of evaluating, negotiating, documenting, pursuing or consummating a possible Transaction (whether in a negotiated transaction or otherwise). You agree (a) to undertake
commercially reasonable precautions, consistent with the precautions you take to safeguard your own confidential and sensitive information, to safeguard and protect the confidentiality of the Evaluation Material and (b) not to authorize or
direct your Representatives to make any disclosure or use of the Evaluation Material in violation of this Agreement. You shall be responsible for any breach by your Representatives of the terms of this Agreement that are applicable to your
Representatives. Notwithstanding anything to the contrary in this Agreement, so long as no Evaluation Material is revealed thereby, you may publicly disclose any price you are prepared to offer, any transaction structure you are proposing to use and
the results of any regulatory (including antitrust) analysis relating to the Transaction. 
 3. You agree that, without the consent of the Company, you and
your Representatives will not disclose information regarding specific discussions or negotiations that have taken place concerning a possible Transaction or any of the specific terms or conditions that have been discussed, except to the extent you
are advised by your counsel that you are required to do so under applicable law, rule, or regulation. Notwithstanding anything to the contrary in this Agreement, you may publicly disclose any letter or other communication from you or your
Representatives to the Company’s Board of Directors regarding any offer or proposal in respect of a Transaction as long as such letter does not disclose Evaluation Material. The Company acknowledges and agrees that you will amend your Schedule
13D to reflect that the parties have entered into this Agreement (and that this Agreement itself will be disclosed) and that the parties intend to explore a possible Transaction. The Company further agrees that the obligations set forth in
Section 5 hereof do not apply to any disclosure made pursuant to Section 2 or this Section 3. 
 4. You understand and agree that neither the
Company nor any of its Representatives have made or make any representation or warranty, expressed or implied, as to the accuracy or completeness of the Evaluation Material or shall have any liability whatsoever to you or any of your Representatives
relating to or resulting from the use or content of the Evaluation Material. You further understand and agree that, except as otherwise provided in the last sentence of Section 1 hereof, neither the Company nor any of its Representatives is
under any obligation to make any particular information available to you or to supplement or update any Evaluation Material previously provided. 
 5. If
you or any of your Representatives are requested or required to disclose any Evaluation Material pursuant to any applicable law, the requirements of any regulatory authority or stock exchange listing rules, or in connection with any legal process or
proceeding, you will, to the extent legally permitted, give the Company prompt written notice of such request or requirement and reasonably cooperate with the Company for it to seek 

 Orchestra-Prémaman, S.A. 

March 15, 2016 
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 a protective order or other
appropriate remedy. In the event that such protective order or other remedy is not obtained, you or your Representatives will disclose only that portion of the Evaluation Material which, upon the written advice of your counsel and, to the extent
legally permitted, after notifying the Company, is legally required to be disclosed. Notwithstanding the foregoing, you will not be permitted to disclose any Evaluation Material if the applicable law, requirements of any regulatory authority or
stock exchange listing rules require such disclosure by virtue of the fact that you have made or intend to make a transaction proposal or offer involving the Company or to solicit support for any such proposal or offer from the Company’s
stockholders. 
 6. Prior to the expiration of a period of 60 days following the date hereof, neither the Company nor any of its Representatives may request
that you and your Representatives return to the Company or destroy all copies of the Evaluation Material and destroy all Notes. If, after the expiration of such period, the Company or Guggenheim requests in writing for any reason, you and your
Representatives will, at your option, promptly return to the Company or destroy all copies of the Evaluation Material and destroy all Notes, in each case without retaining a copy thereof. Notwithstanding the foregoing, you and your Representatives
shall (i) not be required to destroy electronic copies of the Evaluation Material or Notes that may be found in your or your Representatives’ files in accordance with your or their respective archival or back-up procedures or record
retention policies, and (ii) be permitted to retain a copy of any Evaluation Material to the extent that such retention is as required by law, rule, regulation or professional obligations. Notwithstanding the return of the Evaluation Material
and destruction of all Notes or the Company’s or Guggenheim’s request for such destruction, you and your Representatives will continue to be bound by your obligations of confidentiality and other obligations hereunder in accordance with
the terms of this Agreement. 
 7. You hereby acknowledge that you are aware, and that you will advise your Representatives, that the securities laws of the
United States prohibit any person who is aware of material non-public information concerning the Company or a possible Transaction involving the Company from purchasing or selling the Company’s securities or from communicating such information
to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. 
 8. Until
March 22, 2016, and thereafter as long as the Agreed Evaluation Material is actually provided to you in accordance with the terms of this Agreement, you agree that during the Restricted Period (as defined below), you will not, and will cause
your Affiliates and Representatives acting on your behalf not to, directly or indirectly, without the prior written consent of the Company’s Board of Directors or an authorized committee thereof: (i) engage in, or advise, encourage, or
influence any person with respect to, any “solicitation” of “proxies” or “consents” or become a “participant” in a “solicitation” (as such terms are defined in Regulation 14A under the Exchange Act)
of proxies or consents, in each case, with respect to the election or removal of directors the Company; (ii) submit any stockholder proposal (pursuant to Rule 14a-8 promulgated by the SEC under the Exchange Act or otherwise) or any notice of
nomination or other business for consideration, or nominate any candidate for election to the Board other than as expressly permitted by this Agreement; (iii) encourage any person to submit nominations in furtherance of a “contested
solicitation” for the election or removal of directors with respect to the Company; or (iv) seek to call, or to request the calling of, a special meeting of the stockholders of the Company; provided that (a) any disclosure or activity
expressly permitted pursuant to the terms of this Agreement will not be prevented by the foregoing restrictions, (b) you are free to request representation on the Company’s Board of Directors at any time after you have filed an amendment
to your Schedule 13D relating to the Company indicating that you are no longer seeking to acquire control of the Company (provided you have not thereafter made another filing with the SEC reflecting a change in that intention), and (c) you are
free to vote any shares that you own however you wish. For purposes of this Agreement, the “Restricted Period” shall mean the period beginning on the date hereof and ending on the earlier of (a) January 1, 2017, and (b) the
date, if any, (1) that the Company enters into an 

 Orchestra-Prémaman, S.A. 

March 15, 2016 
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 agreement with any third party
providing for any merger, consolidation, business combination, asset sale or other extraordinary transaction that would result in the conversion of more than 50% of the Company’s outstanding common equity or the sale of 50% or more of the
Company’s assets, (2) that the Board recommends in favor of, or publicly takes a neutral position with respect to, any tender or exchange offer by any third party for more than 50% of the Company’s outstanding equity securities, or
(3) on which a majority of the members of the Board as of the date hereof cease to be directors of the Company. In addition, notwithstanding any other provision of this Agreement, nothing herein shall prevent you or your Affiliates from
acquiring securities of, or entering into business combination with, any person who beneficially owns any securities of the Company as long as the purpose of such transaction is not to circumvent the restrictions set forth in this Section 8.

 9. You agree that (i) the Company and Guggenheim shall be free to conduct a process respecting a possible Transaction as they in their sole
discretion shall determine (including negotiating with any prospective transaction party and entering into definitive agreements without prior notice to you or any other person), (ii) any procedures relating to a possible Transaction may be
changed at any time without notice to you or any other person, and (iii) the Company shall have the right to reject or accept any potential transaction party, proposal or offer, or to terminate discussions and negotiations with you, at any time
for any reason whatsoever, in its sole discretion. 
 10. You further agree that this Agreement only creates obligations between the parties hereto with
respect to the matters specifically agreed to herein, and further that this Agreement does not obligate the parties hereto or any of their respective Affiliates to negotiate or enter into a definitive agreement with respect to any Transaction or to
consummate any Transaction. 
 11. You agree that all (i) communications with the Company or its directors and officers regarding a possible
Transaction, (ii) requests for additional information regarding a possible Transaction, (iii) requests for facility tours or management meetings, and (iv) discussions or questions regarding procedures relating to a possible
Transaction will be submitted or directed exclusively to Guggenheim; provided, however, that you may make any offer, proposal or request for waiver directly to the Company’s Board of Directors and engage in discussions and negotiations with the
Company’s Board of Directors and its Representatives regarding any such offer, proposal or request. 
 12. You agree that, until January 1, 2017,
neither you nor any of your Affiliates will, directly or indirectly, without the Company’s prior written consent, solicit for employment any employees of the Company or any of its subsidiaries with whom you have had contact or who were
introduced to you during the period of your investigation of the Company in an executive or management level position. The preceding sentence does not, however, prohibit you or your Affiliates from making general solicitations for employment by
means of advertisements, public notices, recruiting agencies or internal or external websites or job search engines or, directly or indirectly, hiring any person who (i) responds thereto, (ii) contacts you or your Affiliates on their own
initiative without prior solicitation by or on behalf of you or your Affiliates, or (iii) ceases to be employed by the Company without prior solicitation by or on behalf of you or your Affiliates. 

13. Neither you nor your Representatives or any other person acting on your behalf will, directly or indirectly, without the prior written consent of the
Company’s Board of Directors or an authorized committee thereof, provide information pertaining to or otherwise engage in any discussions with any executive officer or director of the Company (i) regarding employment with you, your
Affiliates or the Company following the consummation of a Transaction or (ii) regarding compensation, equity awards or other employee benefits that may be offered in connection with the employment of such person by you, your Affiliates or the
Company following the consummation of a Transaction. 

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March 15, 2016 
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 14. Each party hereto agrees that
money damages may not be a sufficient remedy for any breach of this Agreement by the other party or it Representatives and that, in addition to all other remedies that may be available to such party, each party shall be entitled to seek specific
performance and injunctive or other equitable relief as a remedy for any such breach. If any provision or portion of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, in whole or in
part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by applicable law. 

15. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware. Each party hereto hereby
irrevocably and unconditionally submits to the exclusive jurisdiction of any State or Federal court sitting in Delaware over any suit, action or proceeding arising out of or relating to this Agreement. Each party hereto hereby irrevocably and
unconditionally waive any objection to the placing of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 16. This Agreement may be executed in two or more counterparts, each of which will be deemed to be an original copy of this Agreement, and all of which,
when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission or electronic mail in .pdf or similar format shall constitute effective
execution and delivery of this Agreement as to the parties. For purposes of this Agreement any reference to “written” or “in writing” shall be deemed to include correspondence by signed letter or facsimile or by e-mail. 

17. During the Restricted Period, (i) the Company agrees to refrain from, and to cause its officers and directors to refrain from, any derogatory or
defamatory statements or communications concerning you or any of your officers or directors, and (ii) you agree to refrain from, and to cause your officers and directors to refrain from, any derogatory or defamatory statements or communications
concerning the Company or any of its officers or directors. 
 18. Unless otherwise provided herein, this Agreement shall terminate on the earlier of
(i) the date of entry into of a definitive agreement regarding a Transaction with you, and (ii) January 1, 2017. 
 If you are in agreement
with the foregoing, please so indicate by signing, dating and returning one copy of this Agreement, which will constitute our agreement with respect to the matters set forth herein. 

Very truly yours, 
  

			
	Destination Maternity Corporation
		
	By:	 	   /s/ Anthony M. Romano

		 	Anthony M. Romano
		 	President and Chief Executive Officer

 Orchestra-Prémaman, S.A. 

March 15, 2016 
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 6
 
  
 Confirmed and Agreed to: 

 

			
	Orchestra-Prémaman, S.A.
		
	By:	 	   /s/ Pierre Mestre

		 	Pierre Mestre, Chairman and Presidentex10-1.htm

Exhibit 10.1

 

Q4 2016 STOCK PURCHASE AGREEMENT

 

Q4 2016 STOCK PURCHASE AGREEMENT (this “Agreement”), dated as signed by and between India Globalization Capital, Inc., a Maryland corporation (the “Company”), and ___________ (the “Investor”).

 

WHEREAS, the Investor desires to purchase from the Company, and the Company desires to sell and issue to the Investor, an aggregate of                        shares (the “Shares”) of Common Stock, par value $0.0001 per share, of the Company (“Common Stock”) upon the terms and conditions set forth in this Agreement; and

 

WHEREAS, in connection with the Investor’s purchase of the Shares, the Investor will receive certain rights to participate in future public offerings of Company stock, and will be subject to certain restrictions on the transfer of the Shares, all as more fully set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree to the sale and purchase of the Shares as set forth herein.

 

1.           Definitions.

 

For purposes of this Agreement, the terms set forth below shall have the corresponding meanings provided below.

 

“Affiliate” shall mean, with respect to any specified Person, (i) if such Person is an individual, the spouse, heirs, executors, or legal representatives of such individual, or any trusts for the benefit of such individual or such individual’s spouse and/or lineal descendants, or (ii) otherwise, another Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Person specified.  As used in this definition, “control” shall mean the possession, directly or indirectly, of the sole and unilateral power to cause the direction of the management and policies of a Person, whether through the ownership of voting securities or by contract or other written instrument.

 

“Business Day” shall mean any day on which banks located in New York are not required or authorized by law to remain closed.

 

“Person” shall mean an individual, entity, corporation, partnership, association, limited liability company, limited liability partnership, joint-stock company, trust or unincorporated organization.

 

“Transfer” shall mean any sale, transfer, assignment, conveyance, charge, pledge, mortgage, encumbrance, hypothecation, security interest or other disposition, other than to an Affiliate, or to make or effect any of the above.

 

“Underwriting Documents” shall mean an underwriting agreement in customary form and all other agreements and other documents reasonably requested by an underwriter in connection with an underwritten public offering of equity securities (including, without limitation, questionnaires, powers of attorney, indemnities, custody agreements and lock-up agreements).

 

2.           Sale and Purchase of Shares.

 

2.1.           Subscription for Shares by Investor.  Subject to the terms and conditions of this Agreement, the Investor hereby agrees to purchase the Shares from the Company, and the Company hereby agrees to issue and sell the Shares to the Investor, in the aggregate number of                          Shares, at a purchase price equal to US$0.42 per share, for a total purchase price of US$                         (the “Consideration”).

 

2.2.           Closing; Deliveries.

 

(a)           The closing of the acquisition of the Shares (the “Closing”) shall take place at the offices of Olshan Frome Wolosky LLP, counsel to the Company, at 65 East 55th Street, New York, New York 10022, or at such other place as the parties may mutually agree on such date and time on which the parties may mutually agree (the “Closing Date”).

 

(b)           At or promptly after the Closing, the Company shall deliver to the Investor, against delivery by the Investor of the Consideration (as provided below), a duly issued stock certificate representing the number of Shares purchased by the Investor as set forth above.  The Consideration shall be paid by (i) certified check, or (ii) wire transfer of immediately available funds in accordance with wire transfer instructions provided by the Company.

 

  

  

  

 

3.           Representations, Warranties and Acknowledgments of the Investor.

 

The Investor hereby represents, warrants and acknowledges to the Company as follows:

 

3.1.           Execution, Delivery and Performance.

 

The Investor has full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder and this Agreement has been duly authorized, executed and delivered by it and is valid, binding and enforceable against it in accordance with its terms.

 

3.2.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Investor will conflict with, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Investor is a party or by which the Investor is bound.

 

3.3.           Investment Representations.

 

(a)           The Investor understands that the offering and sale of the Shares is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of the provisions of Section 4(a)(2) of the Securities Act and Regulation D and/or Regulation S adopted thereunder.  The Investor is acquiring the Shares solely for purposes of investment and with no present intention to distribute such Shares.  The Investor is an “accredited investor,” as defined in Rule 501 of Regulation D, and it has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of an investment in the Company pursuant to the terms of this Agreement.

 

(b)           The Investor understands that (i) the purchase of the Shares is a speculative investment which involves a high degree of risk of loss of the Investor's investment therein, (ii) there are substantial restrictions on the transferability of the Shares under the terms hereof and the provisions of the Securities Act and (iii) following the Closing there may not be an active public market for the Shares and, accordingly, it may not be possible to liquidate its investment in the Company in case of emergency, or otherwise.

 

3.4.           Access to Information; Reliance.

 

The Investor has been provided an opportunity to ask questions of, and has received answers thereto satisfactory to it from, the Company and its representatives concerning the Company and the Investor’s investment therein, and the Investor has been provided with such information as it has requested from the Company concerning the same.  The Investor has sought independent legal, investment and tax advice to the extent that it has deemed necessary or appropriate in connection with its decision to invest in the Company.

 

3.5.           Investor Information.

 

The information concerning the Investor set forth on the signature page hereof is true and correct.  The Investor shall promptly notify the Company and provide the Company with corrected information should any of such Investor information cease to be correct following the date hereof.

 

3.6.           Involvement in Certain Legal Proceedings.

 

The Investor:

 

(a)           has not filed or had filed against it a petition under the federal bankruptcy laws or any state insolvency law, or had a receiver, fiscal agent or similar officer appointed by a court for its business or property or any partnership, corporation or business association in which it was a general partner or executive officer at or within five years before the time of such filing;

 

(b)           has not been convicted in a criminal proceeding, and is not a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

(c)           has not been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority or court of competent jurisdiction, permanently or temporarily barring, limiting or enjoining it from engaging in, or otherwise limiting its ability to engage in or be associated with any Person engaged in, any type of business practice, conduct or employment (including without limitation in connection with the purchase or sale of any security or commodity); and

 

  

  

  

 

(d)           has not been found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission (the "SEC") or the Commodity Futures Trading Commission to have violated any federal or state securities law or federal commodities law, and the judgment in such civil action or finding by such Commission has not been subsequently reversed, suspended or vacated.

 

4.           Representations and Warranties of the Company.

 

The Company represents and warrants to the Investor as follows:

 

4.1.           Execution, Delivery and Performance.

 

The Company has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement has been duly authorized, executed and delivered by the Company and is valid, binding and enforceable against the Company in accordance with its terms.

 

4.2.           Shares Duly Authorized.

 

The Shares to be issued to the Investor pursuant to this Agreement, when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and nonassessable.

 

4.3.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Company will conflict with the Company's Certificate of Incorporation or By-laws, as amended to date, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Company is a party or by which the Company is bound.

 

4.4.           Capitalization.

 

 As of the date hereof and as of the Closing Date, Company has approximately 22,500,000 shares issued and outstanding, and Company warrants and options to purchase approximately 1,500,000 shares of common stock. In addition, Investor acknowledges that the current management shall be issued shares pursuant to the Employees Stock Plan that will cause dilution in the number of shares outstanding.

 

4.5.           Operations.

 

Except as set forth in the SEC Documents, the Company (a) has no material debts or obligations of any kind or nature whatsoever, secured or unsecured, contingent or absolute, present or past or of any other kind; (b) has no material federal or state income, withholding or other taxes due or owing; (c) has no material employment or other agreements, oral or written, presently in force; (d) has no legal proceedings, judgments or investigations pending, contemplated or threatened against or affecting it; (e) owes no material fees, salaries or expenses to any person or other entity; (f) has never been involved in any bankruptcy, receivership or other such action; and (g) has not engaged in any business operations to date.

 

4.6.           Materials to be Supplied.

 

(a)           All materials supplied and to be supplied to the Investor by the Company are true, accurate and complete documents, including, but not limited to, the Certificate of Incorporation and By-laws of the Company, as amended to date, a list of stockholders of the Company (a current copy of which is attached hereto), and any and all other documents.

 

(b)           All stockholders shown on the stockholders’ list of the Company referred to above are the proper owners thereof, and there are no stockholders who are not shown on said list.

 

4.7.           Information.

 

(a)           The Company has delivered to the Investor true, accurate and complete copies of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2015, and Quarterly Reports on Form 10-Q for the quarters ended June 30, 2015, September 30, 2015 and December 31, 2015 (the "SEC Documents").  None of the SEC Documents nor any other form, statement, notice, report or document filed by the Company with the SEC prior to the date hereof contained, as of their respective dates, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements contained therein not misleading.

 

  

  

  

 

(b)           The Company has not filed, and nothing has occurred with respect to which the Company would be required to file, any report on Form 8-K since December 31, 2015.  Prior to and until the Closing, the Company will provide to the Investor copies of any and all reports filed by the Company after December 31, 2015 with the SEC and any and all reports or notices delivered to the stockholders of the Company concurrently with the filing or delivery thereof.

 

(c)           The shares of Common Stock are currently listed and traded on the NYSE-MKT.

 

4.8.           Financial Statements.

 

The balance sheets, and statements of operations, cash flows and shareholders' equity contained in the SEC Documents have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with prior periods (and, in the case of unaudited financial information, on a basis consistent with year-end audits).  The financial statements included in the Company's Annual Report on Form 10-K filed with the SEC are as audited by, and include the related opinions of, AJSH & Company, the Company's independent registered public accounting firm. The financial information included in the Company's Quarterly Reports on Form 10-Q filed with the SEC are unaudited, but reflect all adjustments (including normally recurring accounts), which the Company considers necessary for a fair presentation of such information.

 

4.9.           Disclosure.

 

There is no fact relating to the Company that the Company has not disclosed to the Investor in writing which materially and adversely affects nor, insofar as the Company can now foresee, will materially and adversely affect, the condition (financial or otherwise) of the Company.  No representation or warranty by the Company herein and no information disclosed in the disclosure schedules and exhibits hereto by the Company contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein or therein not misleading.

 

5.           Covenants.

 

5.1. NYSE MKT.

 

In order to comply with NYSE MKT rules, in no event shall the Company be obligated to issue a number of Shares under this Agreement equal to more than 19.9% of its outstanding shares of Common Stock, determined immediately prior to the Closing, and the Company agrees not to issue shares of Common Stock in any other related transaction or series of transactions (whether an additional financing or an acquisition transaction in consideration, in whole or part, for Common Stock) that would be integrated herewith and counted together so as to exceed such threshold.

 

6.           Registration Rights.

 

6.1.           Participation in Registrations.

 

Subject to Section 6.2 and the other provisions of this Section 6, if the Company shall determine to register any Common Stock pursuant to the Securities Act, the Company will use its best efforts to include in such registration such number of Shares as it reasonably believes (or, if such offering shall be an underwritten public offering of securities, as the underwriter (the "Underwriter") advises the Company in writing) can be sold in such offering without adversely affecting its (or the Underwriter's) ability to effect an orderly distribution of such securities (the “Registrable Shares”).

 

6.2.           Underwritten Offerings.

 

In the event a registration giving rise to the Investor’s rights pursuant to Section 6.1 relates to an underwritten offering of securities, the Investor’s right to registration pursuant to Section 6.1 shall be conditioned upon its (a) participation in such underwriting, (b) inclusion of the Registrable Shares therein and (c) execution of all Underwriting Documents requested by the Underwriter with respect thereto.  In the event the Underwriter determines that the aggregate number of shares proposed for inclusion in such offering (the “Aggregate Amount”) exceeds the number of shares that it would be advisable to include in such offering (the “Recommended Amount”), the number of Registrable Shares may be reduced on a pro rata basis by the Company to the extent necessary to bring the Aggregate Amount down to the Recommended Amount.

 

6.3.           Expenses.

 

The Company shall bear all of the expenses incurred in connection with an offering of the type described in this Section 6, including, without limitation, SEC filing fees and the fees (up to a maximum aggregate amount of $2,500) of separate counsel retained with respect thereto by the Investor.

 

  

  

  

 

6.4.           Indemnification.

 

The Company and the Investor will indemnify the other party hereto against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus or other document (including any related registration statement, notification or the like) incident to any registration of the type described in Section 6.1, or any omission (or alleged omission) to state in any such document a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse such indemnified party for any legal and any other expenses reasonably incurred in connection with investigating and defending any such claim, loss, damage, liability or action, provided that no party will be eligible for indemnification hereunder to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission based upon written information furnished by such party for use in connection with such registration.

 

6.5.           Cooperation by Holder.

 

The Investor shall furnish to the Company or the Underwriter, as applicable, such information regarding the Investor and the distribution proposed by it as the Company may reasonably request in connection with any registration or offering referred to in this Section 6.  The Investor shall cooperate as reasonably requested by the Company in connection with the preparation of the registration statement with respect to such registration, and for so long as the Company is obligated to file and keep effective such registration statement, shall provide to the Company, in writing, for use in the registration statement, all such information regarding the Investor and its plan of distribution of the Shares included in such registration as may be reasonably necessary to enable the Company to prepare such registration statement, to maintain the currency and effectiveness thereof and otherwise to comply with all applicable requirements of law in connection therewith.

 

6.6.           Excluded Offerings.

 

The Investor’s rights pursuant to Section 6.1 shall not apply to any registrations on any registration form which does not permit secondary sales or does not include substantially the same information as would be required to be included in a registration statement covering the offering and sale of the Shares.  Moreover, the rights described in Section 6.1 shall not be available to the Investor if, in the opinion of counsel to the Company, all of the Shares then held by the Investor could be sold without registration in a transaction complying with Rule 144 under the Securities Act.

 

7.           Transfer Restrictions.

 

7.1.           Securities Act Restrictions.

 

Notwithstanding anything to the contrary in this Agreement, the Investor shall not Transfer any of the Shares unless and until (a) the Company has received an opinion of counsel reasonably satisfactory to it that the Shares may be sold pursuant to an exemption from registration under the Securities Act, the availability of which is established to the reasonable satisfaction of the Company, or (b) a registration statement relating to the Shares has been filed by the Company and declared effective by the SEC.

 

7.2.           Restrictions in Connection with Underwritten Offerings.

 

Notwithstanding anything to the contrary in this Agreement, the Investor shall not Transfer any of the Shares for such time before or following the effective date of a registration statement with respect to a public offering of securities of the Company as shall be reasonably requested by an underwriter of such securities and agreed to by the Company.

 

7.3.           Non-Compliant Transfers.

 

Any Transfer or purported Transfer of Shares made in violation of the provisions of this Section 7 shall be null and void and without effect.

 

8.           Conditions to Closing of the Investor.

 

The obligations of the Investor to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

  

  

  

 

8.1.           Representations and Warranties.

 

The representations and warranties made by the Company in Section 4 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

8.2.           Approvals.

 

All authorizations, approvals or permits, if any, of any governmental authority or regulatory body that are required in connection with the lawful issuance of the Shares by the Company pursuant to this Agreement, shall have been duly obtained by the Company and shall be effective on and as of the Closing Date.

 

8.3.           Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Company in connection with the transactions contemplated hereby shall have occurred, and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Investors.

 

9.           Conditions to Closing of the Company.

 

The obligations of the Company to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

9.1.           Representations and Warranties.

 

The representations and warranties made by the Investor in Section 3 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

9.2.           Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Investor in connection with the transactions contemplated hereby shall have occurred, and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Company.

 

10.           Miscellaneous.

 

10.1.           Restrictive Legend.

 

(a)           The certificate representing the Shares shall bear a legend containing a disclosure statement in substantially the following form:

 

The securities represented by this certificate (the “Shares”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”).  The Shares may not be offered for sale, sold, transferred or otherwise disposed of except pursuant to (a) an effective registration statement under the Securities Act or (b) an exemption from registration under the Securities Act, which exemption is confirmed in an opinion of counsel satisfactory to the Company.  The sale, transfer or other disposition of the Shares is restricted by the provisions of the Q4 2016 Stock Purchase Agreement, dated, in respect of the Shares, a copy of which may be obtained at no cost by written request made by the holder of record of this certificate to the Company at its principal executive offices.

 

(b)           The holder of Shares registered pursuant to the Securities Act and qualified under applicable state securities laws may exchange such Shares for new securities that shall bear a legend which omits the first two sentences of the legend set forth in paragraph (a) of this Section 10.1.

 

10.2.           Notices.

 

All notices, requests, demands and other communications provided in connection with this Agreement shall be in writing and shall be deemed to have been duly given at the time when hand delivered, delivered by express courier, or sent by facsimile (with receipt confirmed by the sender’s transmitting device) in accordance with the contact information provided below or such other contact information as the parties may have duly provided by notice.

 

  

  

  

 

The Company:

 

	
India Globalization Capital, Inc.

4336 Montgomery Avenue

Bethesda, Maryland  20814

Telephone:  (301) 983-0998

Facsimile:   240-465-0273

Attention:              Mr. Ram Mukunda

Chief Executive Officer

and President

	
With a copy to:

	
Olshan Frome Wolosky LLP

65 East 55th Street

New York, New York  10022

Telephone:  (212) 451-2300

Facsimile:   (212) 451-2222

Attention:  Spencer G. Feldman, Esq.

 

The Investor:

 

As per the contact information provided on the signature page hereof.

 

10.3.           Survival of Representations and Warranties.

 

Each party hereto covenants and agrees that the representations and warranties of such party contained in this Agreement shall survive (a) any investigation made by the Company or the Investor and (b) the Closing.

 

10.4.           Entire Agreement.

 

This Agreement contains the entire agreement between the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter contained herein.

 

10.5.           Assignment.

 

This Agreement, and the rights and obligations of a party hereunder, may not be assigned or Transferred by the Investor without the prior written consent of the Company.

 

10.6.           Binding Effect; Benefits.

 

This Agreement and all the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer on any persons other than the parties hereto, or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

10.7.           Amendment; Waivers.

 

All modifications or amendments to this Agreement shall require the written consent of the Company and the Investor.  No waiver of any breach, noncompliance or nonfulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party against whom such waiver is sought; and no waiver of any such breach, noncompliance or nonfulfillment shall be construed to be a waiver of any other or subsequent breach, noncompliance or nonfulfillment.

 

10.8.           Applicable Law; Disputes.

 

This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the conflict of law provisions thereof, and the parties hereto irrevocably submit to the exclusive jurisdiction of the United States District Court for the Southern District of New York, or, if jurisdiction in such court is lacking, the Supreme Court of the State of New York, New York County, in respect of any dispute or matter arising out of or connected with this Agreement.

 

10.9.           Further Assurances.

 

Each party hereto shall do and perform or cause to be done and performed all such further acts, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

10.10.           Counterparts.

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.

 

11.           Actions Required at Future Shareholders Meetings.

As additional and material consideration for this Agreement, the Investor hereby agree and warrant that they shall vote in favor of and in accordance with the recommendations of the Company’s Board of Directors at each of (i) the three (3) consecutive annual shareholders meetings immediately following execution of this Agreement and (ii) all special shareholders meetings that are held prior to the third annual shareholders meeting immediately following execution of this Agreement. The parties acknowledge that this is a material provision of this Agreement, and the failure to comply with this provision shall be grounds for the Company to seek rescission of the Agreement in the event of any breach.

 

  

  

  

 

IN WITNESS WHEREOF, each of the Company and the Investor has caused this Agreement to be executed as of the date below.

 

	
India Globalization Capital, Inc.

	
By:

	
Ram Mukunda

CEO

Date:

 

IN WITNESS WHEREOF, each of the Company and the Investor has caused this Agreement to be executed as of the date first written above.

 

	
 

Signature of Investor:

	
 

Name of Investor:

	
 

Passport Number:

	
 

Social Security number:

	
 

E-Mail Address:

	
Address:

	
If Non U.S. Person attach certificate

 

Witness:

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