Document:

exv10w2

 

Debenture Subscription Agreement

Exhibit 10.2

DEBENTURE SUBSCRIPTION AGREEMENT

THIS DEBENTURE SUBSCRIPTION AGREEMENT is made on this 2nd day of February 2007 BY AND
AMONG:

	1.	 	MBL INFRASTRUCTURES LIMITED, a company incorporated in India under the Companies Act, 1956
and having its registered office at 23A, Netaji Subhash Road, 3rd Floor, Suite No. 14, Kolkata
 — 700001 (hereinafter referred to as the “Company”);
	 
	2.	 	THE PERSONS whose names and particulars are more particularly set out in Schedule 1 hereto
(hereinafter referred to collectively as “Promoters” and each, a “Promoter”, which expression
shall unless repugnant to the context or meaning thereof, be deemed to mean and include their
heirs, legal representatives, executors, and administrators);
	 
	3.	 	INDIA GLOBALISATION CAPITAL, INC. a company organised under the laws of the State of Maryland
and having its office address at 4336 Montgomery Avenue Bethesda, MD 20814 (hereinafter
referred to as “Investor”, which expression shall, unless it be repugnant to the context or
meaning thereof, be deemed to mean and include its successors and assigns).

WHEREAS:

	A.	 	The Company is inter alia engaged in the business of execution of civil engineering projects
and specialises in road and highway projects (the “Business”);
	 
	B.	 	The Promoters are the legal and beneficial owners of 95.92 % of the total issued and paid up
share capital of the Company and are presently in control of the day to day management and
operations of the Company;
	 
	C.	 	The Company has, at the date of this Agreement, an authorised share capital of INR
20,00,00,000 consisting of 2,00,00,000 equity shares of par value INR 10 each (each, an
“Equity Share”). As of date 1,10,63,727 Equity Shares have been issued and are held by the
persons in the number and proportion as set out in Schedule 2;
	 
	D.	 	The Investor has agreed to acquire (by itself or through its Affiliates) through subscription
and purchase of Equity Shares, upto 57% of the total issued, subscribed and paid up share
capital of the Company on a Fully Diluted Basis on such terms and conditions, as contained in
the SSPA;
	 
	E.	 	Since the afore-recited subscription and purchase of Equity Shares is subject to the Investor
receiving its shareholder approval, the Promoters have requested the Investor to make an
interim investment of the Investment Amount for subscribing to the Convertible Instruments of
the Company;
	 
	F.	 	The Parties are entering into this agreement to record the terms and conditions on which the
Investor shall subscribe to Convertible Instruments aggregating to the Investment Amount.
The subscription to the Convertible Instruments shall be in accordance with the terms and

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Debenture Subscription Agreement

	 	 	subject to the conditions of this Agreement.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS, AGREEMENTS, REPRESENTATIONS, WARRANTIES
AND INDEMNITIES SET FORTH IN THIS AGREEMENT, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE
SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED BY THE PARTIES, THE PARTIES HEREBY AGREE AS FOLLOWS:

	1.	 	INTERPRETATION
	 
	1.1.	 	Definitions: In this Agreement, except to the extent that the context requires
otherwise the following terms shall have the meanings set forth below, such meanings to be
applicable to both the singular and the plural forms of such terms:

	 	a)	 	“Act” means the Companies Act, 1956 and any amendment thereto or any other
succeeding enactment for the time being in force;
	 
	 	b)	 	“Affiliate” in relation to the Investor means:

     (i) being a corporate entity, means any entity, which Controls, is Controlled by, or
is under the common Control of the Investor;

     (ii) being an individual, means any person who is Controlled by the Investor or is a
relative of such person;

	 	c)	 	“Agreement” or “the Agreement” or “this Agreement” shall mean this Debenture
Subscription Agreement, as from time to time amended, supplemented or replaced or
otherwise modified and any document which amends, supplements, replaces or otherwise
modifies this Agreement, together with the recitals and all the Annexures, Appendices
and Schedules attached hereto;
	 
	 	d)	 	“Applicable Law” shall mean any Indian statute, law, ordinance, regulation,
rule, order, bye law, administrative interpretation, writ, injunction, directive,
judgment or decree or other instrument which has a force of law in India applicable to
any Party, as is in force from time to time;
	 
	 	e)	 	“Board” means the Board of Directors of the Company;
	 
	 	f)	 	“Business” shall have the meaning ascribed to it in Recital A;
	 
	 	g)	 	“Claim” includes any notice, demand, assessment, letter or other document
issued or action taken by any tax, fiscal or other statutory or governmental authority,
body or official whatsoever (whether of India or elsewhere in the world) whereby the
Company is or may be placed or sought to be placed under a liability to make a payment
or deprived of any relief, allowance, credit or repayment otherwise available;
	 
	 	h)	 	“Control” in relation to an entity, shall mean any of: (i) the legal or
beneficial

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Debenture Subscription Agreement

ownership directly or indirectly of more than 50 % of the voting securities of such
entity or; (ii) controlling the majority of the composition of the board of
directors or; (iii) power to direct the management or policies of such entity by
contract or otherwise. The terms “Controlling” and “Controlled” shall be construed
accordingly;

	 	i)	 	“Completion Date” means the date specified in Clause 3.1.4 hereof;
	 
	 	j)	 	“Conditions” shall mean such conditions as specified in Clause 3.1 hereof;
	 
	 	k)	 	“Conversion Rate” shall mean INR 118/- (Rupees One hundred and Eighteen only),
or such other rate as may be mutually agreed between the Parties, which is the rate at
which the Convertible Instruments and all accrued dividends thereon, are to be
converted into Equity Shares;
	 
	 	l)	 	“Convertible Instruments” shall mean fully convertible debentures to be
subscribed to by the Investor at INR 118/- (Rupees One hundred and Eighteen only) per
such instrument, bearing an interest rate of 8% per annum, to be subscribed to by the
Investor and to be issued by the Company in accordance with this Agreement and the
terms contained in Schedule 3 hereto;
	 
	 	m)	 	“DRHP” shall mean the draft red herring prospectus filed by the Company with
Securities Exchange Board of India, The Stock Exchange, Mumbai and the National Stock
Exchange of India Ltd. pursuant to its program for fund raising through Initial Public
Offerings of Equity Shares and initialed by the Parties for the purpose of
identification;
	 
	 	n)	 	“Encumbrances” means any form of legal, equitable, or security interests,
including, but not limited to, any mortgage, assignment of receivables, debenture,
lien, charge, pledge, title retention, right to acquire, security interest,
hypothecation, options, rights of first refusal, any preference arrangement (including
title transfers and retention arrangements or otherwise) and any other encumbrance or
condition whatsoever or any other arrangements having similar effect;
	 
	 	o)	 	 “Equity Shares” has the meaning ascribed to it in Recital C;
	 
	 	p)	 	“Fully Diluted” or “Fully Diluted Basis” means all the Shares of the Company,
including the Shares comprised in a proposed issue, the Shares underlying all
outstanding warrants, options, stock options granted or reserved, and convertible
debentures, preference shares and all such other securities of the Company after
adjustments for stock splits, bonus issues;
	 
	 	q)	 	“INR” means the lawful currency of India;
	 
	 	r)	 	“Investment Amount” means the maximum aggregate amount of approximately the INR
equivalent of US$3 million proposed to be invested by the Investor into the Company;
	 
	 	s)	 	“IPO or Initial Public Offering” shall mean the initial public offering of
Equity Shares or other securities (including depository receipts) in a recognized stock
exchange in

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India or overseas and the consequent listing of the Equity Shares or other
securities on such recognized stock exchange in India or overseas;

	 	t)	 	“Liabilities” mean any and all current liabilities, obligations, payables,
forms of taxation whether of India or elsewhere in the world, past, present and
deferred (including, without limitation, income tax, stamp duty, customs and other
import or export duties) and all other statutory or governmental impositions, duties
and levies and all penalties, charges, costs and interest relating to any Claim;
	 
	 	u)	 	“Memorandum” means the Memorandum of Association of the Company;
	 
	 	v)	 	“Person” includes an individual, an association, a corporation, a partnership,
a joint venture, a trust, an unincorporated organisation, a joint stock company or
other entity or organisation, including a government or political subdivision, or an
agency or instrumentality thereof and/or any other legal entity (in each case, whether
or not having separate legal personality);
	 
	 	w)	 	“Redeemable Preference Shares” shall mean redeemable preference shares of the
Company at INR 118/- (Rupees One hundred and Eighteen only) per such instrument and
bearing a preferential right of dividend of 8% per annum to be issued by the Company in
accordance with this Agreement and the terms contained in Schedule 3 hereto;
	 
	 	x)	 	“Representations and Warranties” means the representations and warranties
made/provided by the Warrantors to the Investor in this Agreement and in Schedule 4
hereof;
	 
	 	y)	 	“Shares” means the Equity Shares and any other Shares forming a part of the
share capital of the Company and other instruments convertible or exchangeable into
Equity Shares;
	 
	 	z)	 	“SSPA” means the Share Subscription cum Purchase Agreement executed between the
Investor, the promoters (as defined therein) and the Company, pursuant to which, the
Investor has agreed to acquire through subscription and purchase of Equity Shares, upto
57% of the total issued, subscribed and paid up share capital of the Company on a Fully
Diluted Basis on such terms and conditions, as contained therein;
	 
	 	aa)	 	“Warrantors” means the Company and the Promoters, and “Warrantor” means any one
of them.

	1.2.	 	The terms referred to in this Agreement shall, unless defined otherwise or inconsistent with
the context or meaning thereof, bear the meaning ascribed to it under the relevant
statute/legislation.
	 
	1.3.	 	All references in this Agreement to statutory provisions shall be construed as meaning and
including references to:

	 	a)	 	Any statutory modification, consolidation or re-enactment (whether before or
after

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the date of this Agreement) for the time being in force;

	 	b)	 	All statutory instruments or orders made pursuant to a statutory provision; and
	 
	 	c)	 	Any statutory provisions of which these statutory provisions are a
consolidation, re-enactment or modification.

	1.4.	 	Words denoting the singular shall include the plural and words denoting any gender shall
include all genders.
	 
	1.5.	 	Headings to clauses, sub-clauses and paragraphs are for information only and shall not form
part of the operative provisions of this Agreement or the Schedules and shall be ignored in
construing the same.
	 
	1.6.	 	References to recitals, clauses or schedules are, unless the context otherwise requires, are
references to recitals, to clauses of or schedules to this Agreement.
	 
	1.7.	 	Reference to days, months and years are to Gregorian days, months and calendar years
respectively.
	 
	1.8.	 	Reference to “Investor”, unless repugnant to the context shall for the purpose of this
Agreement, mean and include the Affiliates of the Investor.
	 
	1.9.	 	Any reference to the words “hereof,” “herein”, “hereto” and “hereunder” and words of similar
import when used in this Agreement shall refer to clauses or annexures of this Agreement as
specified therein.
	 
	1.10	 	The words ‘include’ and ‘including’ are to be construed without limitation.
	 
	2.	 	SUBSCRIPTION ON COMPLETION DATE
	 
	2.1.	 	Subscription of the Convertible Instruments: Subject to the terms of this Agreement
and relying on the Representations and Warranties and the indemnities given by the Promoters
and the Company under this Agreement, the Investor agrees on the Completion Date to subscribe
for and the Company agrees to allot and issue to the Investor, such number of Convertible
Instruments aggregating to the Investment Amount.
	 
	2.2.	 	Terms of Issue: Each Convertible Instrument shall be allotted and issued free of all
Encumbrances.
	 
	3.	 	CONDITIONS PRECEDENT
	 
	3.1.	 	The obligation of the Investor to subscribe to the Convertible Instruments is conditional
upon the fulfillment of the following conditions to the satisfaction of the Investor:

	 	3.1.1.	 	the Parties complying with all legal formalities and obtaining all statutory consents
and approvals required or desirable under any and all Applicable Laws and regulations
or agreements entered into by the Company for the subscription, issue and allotment of
Convertible Instruments pursuant to the terms of this Agreement;

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Debenture Subscription Agreement

	 	3.1.2.	 	execution of the SSPA.
	 
	 	3.1.3.	 	The Promoters and the Company shall co-operate and provide all information and
assistance to the Investor and/or its advisors and authorised representatives to enable
them to verify the documents provided by the Company pursuant to Clause 3.1.1 of this
Agreement.
	 
	 	3.1.4.	 	Within 7 days of fulfillment of all the Conditions, the Investor shall subscribe to
such number of Convertible Instruments aggregating to the Investment Amount. The date
so indicated by the Investor shall be referred to as “Completion Date”.

	3.2.	 	Waiver: The Investor may waive all or any of the Conditions at any time by notice in
writing to the Company, subject to such conditions which the Investor may deem fit.
	 
	3.3.	 	Obligations of the Company and the Promoters: 

	 	3.3.1.	 	The Company and the Promoters shall use their respective best endeavors to ensure
that the Conditions are fulfilled as soon as possible, but in no event later than 5
days from the date of execution of this Agreement or such other date as may be notified
by the Investor in writing to the Company.
	 
	 	3.3.2.	 	If at any time, the Company or a Promoter becomes aware of a fact or circumstance
that might prevent any of the Conditions from being satisfied, it shall immediately
inform the Investor in writing of the same. In such an event the Parties shall
co-operate with each other in good faith to resolve any issues which may arise.

	4.	 	CLOSING
	 
	4.1.	 	Venue and Time of Closing: The closing shall take place at the time indicated by the
Investor on the Completion Date at Kolkata and time as shall be agreed by the Parties.
	 
	4.2.	 	The Obligations of the Company and the Promoters at Closing:

	 	4.2.1.	 	On the Completion Date, the Company shall deliver or cause to be delivered to the
Investor, (i) original resignation letter of Mr. S. P. Mukherjee resigning as the
director of the Company, dated as of the Completion Date or an date earlier to the
Completion Date but after the date of this Agreement, and (ii) a written confirmation
from the Company and each of the Promoters that as at the Completion Date:

	 	•	 	no event has occurred which has or may have a material adverse effect on the
Business, operations, financial condition or prospects of the Company; and
	 
	 	•	 	the Representations and Warranties are true, accurate and complete and that
it is not aware of any matter or thing which is in breach of or inconsistent
with any of the Representations and Warranties.

	 	4.2.2.	 	Each of the Promoters shall on the Completion Date also deliver all the documents
specified in Clause Error! Reference source not found. of Schedule 3 hereof to the

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	 	 	 	Investor or any Person nominated by the Investor.
	 
	 	4.2.3.	 	Simultaneously against receipt of the Investment Amount, the Promoters and the
Company shall ensure that a meeting of the Board is held at which, the Board shall pass
resolutions approving and accepting:

	 	(a)	 	the issue and allotment to the Investor, of such number of
Convertible Instruments aggregating to the Investment Amount, with specific
reference to the distinctive number of the Convertible Instruments and the
corresponding certificates;
	 
	 	(b)	 	the draft amendments to the Articles of Association of the
Company to incorporate the provisions of Clause 7 of this Agreement;
	 
	 	(c)	 	the resignation of Mr. S. P. Mukherjee from the Board and
approving appointment of one director, as specified by the Investor on the
Board and acknowledging that such director has been appointed pursuant to
Section 255(2) of the Act; and
	 
	 	(d)	 	convening an extra-ordinary general meeting of the Company in
accordance with the Articles of Association of the Company to amend the
Articles of Association of the Company to incorporate the draft amendments
finalized by the Board under Clause 4.2.3(b) above.

	 	4.2.4.	 	Immediately thereafter the Company shall (i) issue and deliver to the authorized
representative of the Investor the original debenture certificates duly stamped, signed
and sealed for the Convertible Instruments subscribed to by the Investor; and (ii)
incorporate the name of the Investor as the legal and beneficial owners of the
Convertible Instruments in the register of debenture holders of the Company.
	 
	 	4.2.5.	 	Each of the Promoters and the Company hereby grant their consent and no-objection to
any future investments/joint venture or technical/financial collaborations or any other
collaborations by the Investor and/or any of its Affiliates in business/entities
engaged in businesses, which are in the same or allied field (present or future) as the
Company and/or any of the Promoters and/or any of their respective affiliates. Each of
the Promoters and the Company undertake to and shall provide the Investor on the
Completion Date, a no objection certificate in the form annexed as Schedule 5 hereof.
	 
	 	4.2.6.	 	Upon completion of the steps set out in Clauses 4.2.1 to 4.2.5 above, the Company
shall hold an extra-ordinary general meeting of the Company to pass necessary
resolutions for amending the Articles of Associations of the Company, as per the draft
amendments initialed and finalized by the Board under Clause 4.2.3(b) above.

	4.3.	 	The Obligations of the Investor at Closing:

	 	4.3.1.	 	On the Completion Date the Investor shall:
	 
	 	a)	 	deliver an application in writing for such number of Convertible Instruments

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	 	 	 	aggregating to the Investment Amount, to be subscribed by the Investor on the
Completion Date;
	 
	 	b)	 	appoint one person as a director on the Board; and
	 
	 	c)	 	pay to the Company the Investment Amount by a cheque or bank draft made in
favour of the Company, or by way of telegraphic transfer, or such other means as may be
agreed with the Company.

	4.4.	 	Notwithstanding anything contained in this Agreement, it is hereby agreed to by and between
the Parties that, the Investor shall be liable to subscribe to the Convertible Instruments in
accordance with this Agreement only if all the Representations and Warranties continue to be
true and correct as on the Completion Date.
	 
	4.5.	 	Investor’s Remedy:

	 	4.5.1.	 	If after having received the Investment amount from the Investor pursuant to Clause
4.3.1 above, if the provisions of Clause 4.2 above are not complied with by the Company
and/or the Promoters on the Completion Date, the Investor shall have the right to
obligate the Company and if so required by the Investor, the Company shall forthwith
refund to the Investor the Investment Amounts received from the Investor pursuant to
Clause 4.3.1 above together with interest thereon calculated at the rate of 21 % per
annum from the date the Investor paid the Investment Amount to the date of actual
refund by the Company with interest (‘Liquidated Damages’).
	 
	 	4.5.2.	 	The Parties agree and acknowledge that the Liquidated Damages is a genuine pre
estimate of the loss that may be suffered by the Investor as a result of non-compliance
by the Company and/or the Promoters of the obligations specified in this Agreement.

	5.	 	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS
	 
	5.1.	 	True and Accurate: The Warrantors represent, warrant and undertake to the Investor,
that each of the statements set out in this Clause and Schedule 4 hereof, as applicable to the
Warrantors, is now and will be true and accurate at the Completion Date. The Warrantors
acknowledge that the Investor, in entering into this Agreement, is relying on such
representations, warranties and undertakings and shall be entitled to treat the same as
conditions of the Agreement.
	 
	5.2.	 	Investor Representation: The Investor hereby represents and warrants that it has the
corporate power and authority to execute, deliver and perform this Agreement and the
transactions contemplated herein. The execution, delivery and performance by the Investor of
this Agreement has been duly authorized and approved by its board of directors.
	 
	5.3.	 	Separate and Independent: Each of the Representations and Warranties shall be
separate and independent and, save as expressly provided to the contrary, shall not be limited
by reference to or inference from any other Representations and Warranty or any other term of
this Agreement, which is not expressly referenced to the Representations and Warranty
concerned.

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	5.4.	 	Knowledge: If any Representation or Warranty is qualified by knowledge, then it means
that the Representation or Warranty has been made to the best knowledge of the Warrantors,
after the Warrantors have made and caused to be made such due and proper inquiries as may be
required in respect of the relevant matter to obtain informed knowledge.
	 
	5.5.	 	Undertaking: None of the Warrantors shall do, allow or procure any act or omission
before the Completion Date which would respectively constitute a breach of any of the
Representations and Warranties if they were given at the Completion Date, or which would make
any of the Representations and Warranties inaccurate or misleading if they were so given.
	 
	5.6.	 	Notification of breach: Each of the Warrantors hereby agree to disclose promptly to
the Investor in writing immediately upon becoming aware of the same, any matter, event or
circumstance (including any omission to act) which may arise or become known to it after the
date of this Agreement which:

	 	5.6.1.	 	would render any of the Representations and Warranties to be inaccurate; or
	 
	 	5.6.2.	 	has, or is likely to have, a material adverse effect on the financial position or
prospects of the Company.

	5.7.	 	Use of Subscription Proceeds: The Company and the Promoters undertake that the
proceeds from the issue of the Convertible Instruments, shall be utilized and applied by the
Company solely for the purposes of enhancing and promoting the Business of the Company, save
as otherwise expressly and specifically agreed in writing by the Investor at their sole and
absolute discretion.
	 
	5.8.	 	Survival: The Representations and Warranties provided in this Agreement shall
survive the Completion Date.

	6.	 	INDEMNITY
	 
	6.1.	 	Without prejudice to any other right available to the Investor in law or under equity, the
Company and the Promoters shall jointly and severally indemnify, defend and hold harmless the
Investor, their Affiliates, directors, officers, employees and agents, and where the Investor
so elects, the Promoters shall jointly and severally indemnify, defend and hold harmless the
Company, its Affiliates, directors, officers, employees and agents from and against any and
all liabilities, damages, demands, Claims (including third party Claims), actions, judgments
or causes of action, assessments, interest, fines, penalties, and other costs or expenses
(including, without limitation, amounts paid in settlement, court costs and all reasonable
attorneys’ fees and out of pocket expenses) directly based upon, arising out of, or in
relation to or otherwise in respect of:

	 	i.	 	any inaccuracy in or any breach of any Representation and Warranty, covenant or
agreement of the Promoters or the Company contained in this Agreement or any document
or other papers delivered by any of them to the Investor in connection with or pursuant
to this Agreement;

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	 	ii.	 	any liability arising out of non compliance of any obligation undertaken by the
Company or the Promoters, save and except those already provided in the audited
financial statements of the Company or disclosed in the DRHP;
	 
	 	iii.	 	any liabilities and obligations of whatever nature relating to any litigation,
Claim or governmental investigation pending or relating to the business or operations
of the Promoters or the Business of the Company prior to the date of execution of this
Agreement and as on the Completion Date, save and except those already provided in the
audited financial statements of the Company or disclosed in the DRHP;
	 
	 	iv.	 	any liability due to any non-compliance of any Applicable Law, rules or
regulations prior to the date of execution of this Agreement and as on the Completion
Date, save and except those already provided in the audited financial statements of the
Company or disclosed in the DRHP;
	 
	 	v.	 	any liability arising from the non-compliance of any statutory requirements in
connection with the issuance and registration of the Convertible Instruments pursuant
to the terms of this Agreement.

	6.2.	 	Any compensation or indemnity as referred to in Clause 6.1 above shall be such as to place
the Investor in the same position as it would have been in, had there not been any such breach
and as if the Representation and Warranty under which Investor is to be indemnified, had been
correct.
	 
	7.	 	BOARD REPRESENTATION
	 
	7.1.	 	The Parties agree and acknowledge that the Investor shall be entitled to appoint one director
on the Board and that such director shall be appointed under Section 255(2) of the Act. Such
director shall resign on the Completion Date as defined in Clause 5.3 of the SSPA or by
30th September 2007 or on redemption of the Redeemable Preference Shares, whichever
is latest. Such date may be modified by mutual consent of the Parties.
	 
	7.2.	 	On the Completion Date, the composition of the Board shall be changed forthwith and the
Promoters shall co-operate and cause its nominee directors to resign from the Board or shall
remove such nominee directors from the Board so as to enable the Investor to have one director
on the Board.
	 
	7.3.	 	The right of nomination and appointment of the directors conferred on the Investor under
Clause 7.1 shall include the right at any time to remove from office any such persons
nominated or appointed by them and from time to time determine the period for which such
persons shall hold office as Director. If the Investor desires that any of the directors
nominated or appointed by it should cease to be a director of the Company, the Promoters shall
cause, and shall exercise its voting rights in such manner, so as to ensure such removal and
appointment of new director nominated by the Investor to replace the director so removed as
soon as may be practicable.
	 
	7.4.	 	All questions arising at the meetings or the adjourned meetings of the Board shall be decided
by a majority of votes of the directors present and entitled to vote. However, no resolution
shall be passed or decision be taken by the Board at a meeting of the Board, or by circulation

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	 	 	 	in respect of any of the following matters unless an affirmative vote of the director
appointed/nominated by the Investor is obtained for it to be validly passed or taken. It is
clarified for the avoidance of doubt that the Board shall not be entitled to pass a
resolution on any of the following matters if the director appointed/nominated by the
Investor is not present at such meeting of the Board:

	 	7.4.1.	 	entering into a scheme of reconstruction (including a demerger of any division) or
entering into a scheme of arrangement with creditors or shareholders, or passing any
resolution for its winding up or undertaking any liquidation exercise or applying for
the appointment of a receiver, manager, judicial manager or like officer;
	 
	 	7.4.2.	 	creation, allotment, issue, acquisition, reduction, repayment, conversion or
redemption of any Share or loan capital (except those in the ordinary course of
business) or of any instrument convertible into Shares; or any entering into an
agreement, arrangement or undertaking to do any of those things, or any action which
alters the share capital of the Company or the variation of rights of any Shares of the
Company;
	 
	 	7.4.3.	 	any amendment to the Memorandum or Articles of Association of the Company which
affects the Investor’s interests;
	 
	 	7.4.4.	 	any action leading to the entering in to any listing agreement with any stock
exchange, offering Shares to QIBs, FIs or the Public or listing any IPO;

	7.5.	 	In the event the Investor or any of its Affiliates cease to (i) be shareholders of the
Company; or (ii) hold any Convertible Instruments, then all the rights of the Investor under
this Clause shall automatically terminate and the Investor shall cause his nominee director to
resign from the Board.
	 
	8.	 	CO-OPERATION
	 
	 	 	The Parties shall use their reasonable efforts to ensure that the transactions contemplated
by this Agreement are consummated as per the terms hereof, including without limitation,
obtaining all approvals from the applicable government and/or regulatory authorities and
other Persons as may be necessary or reasonably requested by the Investor in order to
consummate the transactions contemplated by this Agreement.
	 
	9.	 	RESOLUTION OF DISPUTES
	 
	9.1.	 	Amicable Settlement
	 
	 	 	If any dispute arises between the Investor and/or the Promoters and/or the Company during
the subsistence of this Agreement or thereafter, in connection with the validity,
interpretation, implementation or alleged breach of any provision of this Agreement
(“Dispute”), the disputing Parties hereto shall endeavour to settle such Dispute amicably.
The attempt to bring about an amicable settlement shall be considered to have failed if not
resolved within 60 days from the date of the Dispute.
	 
	9.2.	 	Conciliation

11

 

Debenture Subscription Agreement

	 	 	If the Parties are unable to amicably settle the Dispute in accordance with Clause 9.1
within the period specified therein, the Parties shall forthwith but not later than 30 days
after expiry of the aforesaid period, refer the Dispute to Mr. Ram Mukunda and Mr. Ram Gopal
Maheshwari for resolution of the said Dispute. The attempt to bring about such resolution
shall be considered to have failed if not resolved within 30 days from the date of receipt
of a written notification in this regard.
	 
	9.3.	 	Arbitration

	 	(i)	 	In the event the Dispute is not settled in accordance with Clause 9.2 above,
any Party to the Dispute shall be entitled to serve a notice invoking this Clause and
making a reference to an arbitration panel of three arbitrators. Each Party to the
dispute shall appoint one arbitrator within 30 days of receipt of the notice of the
Party making the reference, and the two arbitrators so appointed shall appoint a third
arbitrator. The decision of the arbitration panel shall be binding on all the Parties
to the Dispute.
	 
	 	(ii)	 	The place of the arbitration shall be Kolkata.
(iii) The Arbitration proceedings shall be governed by the laws of India.
(iv) The proceedings of arbitration shall be in the English language.
	 
	 	(v)	 	The Arbitrator’s award shall be substantiated in writing. The court of
arbitration shall also decide on the costs of the arbitration proceedings. In case the
arbitrators have not decided on the costs of the arbitration proceedings, each Party to
the Dispute shall bear its own costs, in relation to the arbitration proceedings.
	 
	 	(vi)	 	The award shall be binding on the Parties subject to the Applicable Laws in
force and the award shall be enforceable in any competent court of law.
	 
	 	(vii)	 	It is mutually agreed by both the Parties that Indian courts shall have
exclusive jurisdiction.

	10.	 	NOTICES
	 
	10.1.	 	Any notice or other communication that may be given by one Party to the other shall always
be in writing and shall be served either by (i) hand delivery duly acknowledged; or (ii) sent
by registered post with acknowledgment due; or (iii) by facsimile at the respective addresses
set out herein below or at such other address as may be subsequently intimated by one Party to
the other in writing as set out herein. If the notice is sent by facsimile, the said notice
shall also be sent by registered post acknowledgment due.

	 	 	 	 	 
	 

	 	The Investor:
	 	Ram Mukunda
	 

	 	Address:
	 	At the address mentioned above
	 

	 	Tel:
	 	+1 301 529 4996
	 

	 	Facsimile:
	 	+ 1 240 465 0273
	 
	 	 	 	 
	 

	 	The Company:
	 	Ram Gopal Maheshwari

12

 

Debenture Subscription Agreement

	 	 	 	 	 
	 

	 	Address:
	 	At the address above
	 

	 	Tel:
	 	+91 33 2230 2353/9517
	 

	 	Facsimile:
	 	+91 33 2230 8807
	 
	 	 	 	 
	 

	 	The Promoters:
	 	A.K. Lakhotia
	 

	 	Address:
	 	As mentioned specified in Schedule 1 hereof
	 

	 	Tel:
	 	+91 33 2230 2353/9517
	 

	 	Facsimile:
	 	+91 33 2230 8807

	10.2.	 	All notices shall be deemed to have been validly given on (i) the business date immediately
after the date of transmission with confirmed answer back, if transmitted by facsimile
transmission, or (ii) the business date of receipt, if sent by courier or hand delivery; or
(iii) the expiry of seven days after posting, if sent by registered post.
	 
	10.3.	 	Any Party may, from time to time, change its address or representative for receipt of
notices provided for in this Agreement by giving to the other Party not less than 7 days prior
written notice.
	 
	11.	 	TERM AND TERMINATION
	 
	11.1.	 	This Agreement shall come into effect and force and be binding on the Parties from the date
first written above and shall remain in full force unless terminated in accordance with the
provisions of this Agreement.
	 
	11.2	 	This Agreement may be terminated at any time by mutual written agreement of the Parties.
	 
	11.3	 	At the option of the Investor, this Agreement shall stand terminated if the Closing does not
take place as per Clause 4 of this Agreement.
	 
	11.4	 	However, within 15 days of signing the SSPA and handing over the requisite shareholder and
board resolutions enabling the issuance and registration of Convertible Instruments pursuant
to the terms of this Agreement, or any mutual extension thereof; if the Investment Amount is
not paid to the Company by a cheque or bank draft made in favour of the Company, or by way of
telegraphic transfer, or such other means as may be agreed with the Company, this Agreement
shall stand terminated.
	 
	12.	 	CONFIDENTIALITY
	 
	12.1.	 	The Parties recognise that each of them will be given and have access to confidential and
proprietary information of the other Parties. The Parties undertake not to use any of such
confidential information for their own corporate purposes without the prior written consent of
the Party owning such information and shall keep confidential and not to disclose to any third
party any of the other Parties’ confidential and proprietary information. The Parties shall
also cause their respective directors, employees, officers and any other persons to whom the
above mentioned information is disclosed to execute a letter of confidentiality to the effect
provided in this Clause. The obligations of confidentiality shall not apply to any information
that:

13

 

Debenture Subscription Agreement

	 	(a)	 	was developed independently by the Parties;
	 
	 	(b)	 	was known to the Party prior to its disclosure by the disclosing Party;
	 
	 	(c)	 	has become generally available to the public (other than by virtue of its
disclosure by the receiving Party);
	 
	 	(d)	 	may be required in any report, statement or test the Company submitted to any
governmental or regulatory body;
	 
	 	(e)	 	may be required in response to any summons or subpoena or in connection with
any litigation; or
	 
	 	(f)	 	may be required to comply with any law, order, regulation or ruling applicable
to any Party hereto
	 
	 	Provided that prior to any disclosure in respect of a request to disclose confidential
information under subsections (d), (e) and (f), above a Party must first notify the
Party owning such confidential information, who shall then have the opportunity to
respond to and/or dispute such request. The provisions of this Clause shall survive
the termination of this Agreement.

	12.2.	 	Upon termination of this Agreement, the Parties shall cause the Company to either i) return
to the Investor and Promoters, as applicable, and the Parties shall return to each other, all
documents and information belonging to such Person and all copies thereof in the possession or
under the control of a Party which does not own such property, and all confidential
information in whatever media; or (ii) destroy all documents and information belonging to the
other Party and all copies thereof in the possession or under the control of a Party .
	 
	12.3.	 	The Parties acknowledge and agree that the covenants and obligations with respect to
confidentiality set forth in this Clause relate to special, unique and extraordinary matters,
and that a violation of any of the terms of such covenants and obligations will cause the
Company and the owner of such property irreparable injury for which adequate remedies are not
available at law. Therefore, the Parties agree that the Party entitled to enforce the
covenants set forth above, shall be entitled to an injunction, restraining order or such other
equitable relief as a court of competent jurisdiction may deem necessary or appropriate to
restrain the other Party from committing any violation of the covenants and obligations
contained in this Clause. These injunctive remedies are cumulative and are in addition to any
other rights and remedies the concerned Party may have at law or in equity.
	 
	13.	 	AUTHORISED PERSON
	 
	 	 	For the purposes of this Agreement, the Promoters shall be represented by Mr. Anjanee Kumar
Lakhotia. Accordingly, all the Promoters hereby authorise Mr. Anjanee Kumar Lakhotia to
represent the Promoters and take any decision which may be required to be taken, do all acts
and execute all documents which are or may be required by the Promoters for the proper and
effective fulfillment of the rights and obligations under this Agreement. Any action taken
or deed performed or document executed by Mr. Anjanee Kumar Lakhotia shall be deemed to be
acts or deeds done or documents executed by all the Promoters, and shall be

14

 

Debenture Subscription Agreement

	 	 	binding on all the Promoters.
	 
	14.	 	FUTURE INVESTMENT
	 
	 	 	In the event the Condition Precedent referred to Clause 4.1.2 of the SSPA is not satisfied
on or prior to April 30, 2007, the Investor shall be obliged at the option of the Company
and the Promoters to invest an additional amount of approximately the INR equivalent of US$3
million into the Company by subscription to further allotment of Convertible Instruments to
the Investor as per the terms of this Agreement. Such date may only be extendable by mutual
consent. If such additional amount is not paid by April 30, 2007 or any extension thereof,
the SSPA shall stand terminated.
	 
	15.	 	MISCELLANEOUS PROVISIONS
	 
	15.1.	 	Reservation of Rights
	 
	 	 	The rights which each Party has under this Agreement shall not be affected, diminished or
prejudiced or restricted by any forbearance, indulgence or relaxation or inaction by the
other Party at any time to require performance of any of the provisions of this Agreement.
No waiver or acquiescence by any Party of any breach of any of the provisions of this
Agreement shall not be construed as a waiver or acquiescence of any continuing or succeeding
breach of such provisions, a waiver of any right under or arising out of this Agreement or
acquiescence to or recognition of rights other than that expressly stipulated in this
Agreement.
	 
	15.2.	 	Cumulative Rights
	 
	 	 	All remedies of either Party under this Agreement whether provided herein or conferred by
statute, civil law, common law, custom or trade usage, are cumulative and not alternative
and may be enforced successively or concurrently.
	 
	15.3.	 	Partial Invalidity
	 
	 	 	If any provision of this Agreement or the application thereof to any Person or circumstance
shall be invalid or unenforceable to any extent, the remainder of this Agreement and the
application of such provision to persons or circumstances other than those as to which it is
held invalid or unenforceable shall not be affected thereby, and each provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by law. Any invalid
or unenforceable provision of this Agreement shall be replaced with a provision, which is
valid and enforceable and most nearly reflects the original intent of the unenforceable
provision. Provided however, if said provision is fundamental provision of this Agreement or
forms part of the consideration or object of this Agreement, the provision of this Clause
shall not apply.
	 
	15.4.	 	Amendments
	 
	 	 	No modification or amendment of this Agreement and no waiver of any of the terms or
conditions hereof shall be valid or binding unless made in writing and duly executed by all
the Parties.

15

 

Debenture Subscription Agreement

	15.5.	 	Assignment
	 
	 	 	Save and except as provided hereunder, this Agreement and the rights and liabilities
hereunder shall bind and inure to the benefit of the respective successors of the Parties
hereto, but no Party hereto shall assign or transfer any of its rights and liabilities
hereunder to any other Person without the prior written consent of the other Parties.
Notwithstanding anything to the contrary contained above, the Investor shall be entitled to
assign its rights and/or obligations hereunder to any of its lenders or to any of its
Affiliates or to its holding company or to its ultimate parent company, without the consent
of the other Parties. The Parties shall mutually work together within the framework of the
law.
	 
	15.6.	 	Entire Agreement
	 
	 	 	This Agreement constitutes the entire Agreement between the Parties with respect to the
subscription of the Convertible Instruments and supersedes and cancels any prior oral or
written agreement, representation, understanding, arrangement, communication or expression
of intent relating to the subject matter of this Agreement.
	 
	15.7.	 	Relationship
	 
	 	 	None of the provisions of this Agreement shall be deemed to constitute a partnership
between the Parties hereto and no Party shall have any authority to bind the other Party
otherwise than under this Agreement or shall be deemed to be the agent of the other in any
way.
	 
	15.8.	 	Governing law

This Agreement shall be governed and construed in accordance with the laws of India.
	 
	15.9.	 	 Costs
	 
	 	 	Each Party shall bear its own expenses incurred in preparing this Agreement. The Company
shall pay the stamp duty and other costs in respect of this Agreement and the issue and
allotment of the Convertible Instruments to the Investor.
	 
	15.10.	 	Force Majeure
	 
	 	 	No Party shall be liable to the other if, and to the extent, that the performance or delay
in performance of any of its obligations under this Agreement is prevented, restricted,
delayed or interfered with due to circumstances beyond the reasonable control of such Party,
including but not limited to, Government legislations, fires, floods, explosions, epidemics,
accidents, acts of God, wars, riots, strikes, lockouts, or other concerted acts of workmen,
acts of Government and/or shortages of materials. The Party claiming an event of force
majeure shall promptly notify the other Parties in writing, and provide full particulars of
the cause or event and the date of first occurrence thereof, as soon as possible after the
event and also keep the other Parties informed of any further developments. The Party so
affected shall use its best efforts to remove the cause of non-performance, and the Parties
shall resume performance hereunder with the utmost dispatch when such cause is removed.

16

 

Debenture Subscription Agreement

	15.11.	 	Public announcements
	 
	 	 	Neither the Investor nor the Promoters nor the Company shall make any disclosure or
announcements about the subject matter of this Agreement to any Person without the prior
written consent of the other Party except to the Board or the members of the Investor or the
Company or for the purpose of fulfilling its statutory obligations.
	 
	15.12.	 	Execution in Counterparts
	 
	 	 	This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original and all of which, taken together, shall constitute one and the same instrument.
	 
	15.13.	 	Authorization
	 
	 	 	The persons signing this Agreement on behalf of the Parties represent and covenant that they
have the authority to so sign and execute this document on behalf of the Parties for whom
they are signing.

[EXECUTION PAGE FOLLOWS]

17

 

Debenture Subscription Agreement

IN WITNESS WHEREOF THE PARTIES HERETO HAVE SET AND SUBSCRIBED THEIR RESPECTIVE HANDS TO THESE
PRESENTS ON THE DAY, MONTH AND YEAR HEREIN WRITTEN:

	 	 	 	 	 	 	 
	SIGNED
AND DELIVERED   /s/ Parveen Mukunda

	 	 	)	 	 	 
	BY THE WITHINNAMED “ INVESTOR ”

	 	 	)	 	 	 
	PARVEEN MUKUNDA

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	ON THE 2nd DAY OF FEBRUARY 2007

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	IN THE PRESENCE OF:

	 	 	)	 	 	 
	WITNESS:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	NAME AND ADDRESS:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED
AND DELIVERED  /s/ Ram Gopal Maheshwari

	 	 	)	 	 	 
	BY THE WITHINNAMED “COMPANY”

	 	 	)	 	 	 
	BY THE HAND OF Mr.

	 	 	)	 	 	 
	(AUTHORISED SIGNATORY) PURSUANT TO THE

	 	 	)	 	 	 
	RESOLUTION PASSED BY THE BOARD

	 	 	)	 	 	 
	ON THE 2ND DAY OF FEBRUARY 2007

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	IN THE PRESENCE OF:

	 	 	)	 	 	 
	WITNESS:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	NAME AND ADDRESS:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED
AND DELIVERED  /s/ Anjanee Kumar Lakhotia

	 	 	)	 	 	 
	BY THE WITHINNAMED “Promoters”

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	ON THE 2ND DAY OF FEBRUARY 2007

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	IN THE PRESENCE OF:

	 	 	)	 	 	 
	WITNESS:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	NAME AND ADDRESS:

	 	 	)	 	 	 

18exv10w3

 

Exhibit 10.3

NOTE AND WARRANT PURCHASE AGREEMENT

     THIS NOTE AND WARRANT
PURCHASE AGREEMENT (the “Agreement”) is effective as of
February 5, 2007,
by and between INDIA GLOBALIZATION CAPITAL, INC., a Maryland corporation (the “Company”) and
OLIVEIRA CAPITAL, LLC (“Investor”).

     1. The Loans, Notes and Warrants.

     1.1 The Loans. Subject to the terms and conditions of this Agreement, Investor agrees
to make a loan (the “Loan”) to the Company in the aggregate principal amount of Three Million
Dollars ($3,000,000.00) to be governed by the terms and conditions of, and repaid in accordance
with, this Agreement; provided, however, that the Company’s board of directors may increase this
amount at its sole discretion. Subject to Section 4, in order to secure repayment of the Loan, the
Company shall grant a security interest to the Investor in the Debentures pursuant to the terms and
conditions of the Pledge Agreement attached hereto as Exhibit D.

     1.2 The Notes. The Loan made by the Investor pursuant hereto shall be evidenced by
promissory note (collectively, the “Notes”) of the Company executed concurrently herewith in the
form attached hereto as Exhibit A.

     1.3 The Warrants. Subject to the terms of this Agreement, the Company shall issue and
sell to the Investor a warrant to purchase four hundred twenty five thousand (425,00) shares of the
Common Stock of the Company (individually, a “Warrant” and collectively, the “Warrants”), in
substantially the form attached hereto as Exhibit B. In the event of subsequent Closings
as provided in Section 1.4, subject to the terms of this Agreement, in connection with each
subsequent Loan evidenced by a Note, the Company shall issue and sell to the Investor a warrant to
purchase fourteen thousand one hundred sixty six (14,166) shares of the Common Stock of the Company
for each one hundred thousand dollars ($10,000) in principal amount of such Note. The Company will
also enter into a Registration Rights Agreement in substantially the form attached hereto as
Exhibit C providing for “piggyback” registration rights for the Warrants and the underlying shares
of Common Stock.

     1.4 Closings. The purchase and sale of the Notes (each a “Closing”) will take place
at the offices of Seyfarth Shaw LLP, 815 Connecticut Avenue, N.W., Suite 500, Washington, D.C. at
such time as the parties shall mutually agree. The Company may sell additional Notes, with a
principal amount of $10,000 or any multiple thereof until December 31, 2007, to such persons as the
Company may determine. Any such sale shall be upon the same terms and conditions as those
contained herein, and such persons or entities shall become parties to this Agreement and shall
have the rights and obligations of an Investor hereunder.

     1.5 Delivery. At the Closing, the Company will deliver to each Investor a Note, the
original principal amount of which shall be in such amounts as are indicated next to each
Investor’s name on Schedule A attached hereto, a Warrant.

     1.6 Extension of Demand Date. At the Company’s election, the Demand Date may be
extended up to ninety (90) days. In the event the Company elects to extend the Demand Date

C-1

 

as provided herein, the Company shall provide notice to the Investor and shall provide each
Investor with an additional Warrant under the same terms and conditions, and in the same amount, as
each Investor’s initial Warrant.

     1.7 Right of First Offer. If, within one hundred twenty (120) days after execution
hereof, the Company seeks to borrow additional funds, it shall notify Investor in writing.
Investor shall have two (2) business days within which to offer in writing to lend to the Company
the lesser of (i) the first one million dollars ($1,000,000) of additional funds sought by the
Company or (ii) the entire amount of additional funds sought by the Company, upon the same terms
and conditions as are contained herein. If Investor makes such an offer within the two (2)
business day period, closing on such Loan shall take place within two (2) business days after such
offer is made. Time is of the essence for purposes of this paragraph. If the Company seeks less
than one million dollars within the time set forth in the first sentence hereof, Investor shall
have the right, in accordance with this paragraph, to lend to the Company up to a cumulative total
of one million dollars. Notwithstanding the previous sentence, if Investor declines to offer to
lend funds to the Company in accordance with this paragraph, or if Investor fails to make such
offer timely, it shall have no further rights hereunder and the Company may borrower such amounts
on such terms as it deems appropriate from any other person.

     2. Representations and Warranties of the Company. Except as disclosed in the
Disclosure Schedule attached hereto as Exhibit D, the Company hereby represents and warrants to the
Investor as follows:

     2.1 Organization, Standing and Power. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Maryland and has all requisite
corporate power and authority to own, lease and operate its properties and to carry on its business
as contemplated to be conducted (the “Business”).

     2.2 Authority and Enforceability. The Company has all requisite corporate power and
authority to execute and deliver this Agreement and to perform fully its obligations hereunder.
The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part of the Company.
This Agreement has been duly executed and delivered by the Company and, assuming this Agreement
constitutes a valid and binding agreement of the other parties hereto, this Agreement constitutes a
legal, valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors’ rights and remedies generally and
subject, as to enforceability, to general principles of equity, regardless of whether
enforceability is considered in a proceeding at law or in equity.

     2.3 Accuracy of Public Filings. The representations, warranties and other statements
of the Company contained in the Prospectus on file with the Securities and Exchange Commission
(“SEC”) and all other documents on file with SEC taken as a whole, do not contain any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements contained therein not misleading as of the respective dates of such filings.

     2.4 Use of Proceeds. All of the proceeds of the Loans will be used to purchase
convertible debentures of MBL Infrastructures Limited (“MBL”) pursuant to a Debenture

C-2

 

Subscription Agreement (the “DSA”) among MBL, the Company and certain other persons to be
defined as the “Promoters” in such Agreement Such convertible debentures are herein referred to as
the “Debentures.”

     3. Representations and Warranties of the Investor. The Investor hereby represents and
warrants that:

     3.1 Authorization. Investor has full power and authority to enter into this
Agreement, the Note and the Warrant (collectively, the “Loan Agreements”), and that the Loan
Agreements constitute valid and legally binding obligations of such Investor, enforceable in
accordance with their respective terms.

     3.2 Purchase Entirely for Own Account. The Notes, the Warrants and any Common Stock
purchased upon exercise of the Warrants (collectively, the “Securities”) will be acquired for
investment for Investor’s own account, not as a nominee or agent, and not with a view to the resale
or distribution of any part thereof, and the Investor has no present intention of selling, granting
any participation in, or otherwise distributing the same. The Investor does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participation in
any of the Securities to such person or to any third person. The Investor has full power and
authority to enter into this Agreement.

     3.3 Disclosure of Information. The Investor believes it has received all of the
information it considers necessary or appropriate for deciding whether to purchase the Note and the
Warrant. The Investor has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering and sale of the Note and the Warrant.

     3.4 Investment Experience. The Investor is an investor in securities of companies in
the development stage and acknowledges that it is able to fend for itself and bear the economic
risk of its investment, including the complete loss thereof, and has such knowledge and experience
in financial or business matters that it is capable of evaluating the merits and risks of the
investment in the Note and the Warrant. The Investor has not been organized for the purpose of
acquiring the Securities.

     3.5 Financial Risk. The Investor has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of its investment, and has the
ability to bear the economic risks of its investment.

     3.6 Accredited Investor. The Investor is an “accredited investor” within the meaning
of the Securities and Exchange Rule 501(a) of Regulation D, as presently in effect.

     3.7 Restricted Securities. The Investor understands that the Securities it is
purchasing are characterized as “restricted securities” under the federal securities laws inasmuch
as they are being acquired from the Company in a transaction not involving a public offering and
that, under such laws and applicable regulations, such securities may be resold without
registration under the Securities Act of 1933, as amended (the “Securities Act”), only in certain
limited circumstances. In this connection, the Investor is familiar with Rule 144, as presently in
effect, and understands

C-3

 

the resale limitations imposed thereby and by the Securities Act. The Investor understands
Rule 144 is not currently available for the sale of the Securities and may never be so available.

     3.8 Further Limitations on Disposition. Without in any way limiting the
representations set forth above, the Investor further agrees not to make any disposition of all or
any portion of the Securities (other than the valid exercise or conversion thereof in accordance
with their respective terms) unless and until:

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

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

     (c) Notwithstanding the foregoing, no investment representation letter or opinion of counsel
shall be required for any transfer of any Securities (i) in compliance with Rule 144 or Rule 144A
of the Securities Act, or (ii) by gift, will or intestate succession by such holder to his or her
spouse or lineal descendants or ancestors or any trust for any of the foregoing; provided that in
each of the foregoing cases the transferee agrees in writing to be subject to the terms of this
Agreement. In addition, if the holder of any Securities delivers to the Company an unqualified
opinion of counsel that no subsequent transfer of such Securities shall require registration under
the Securities Act, the Company shall, upon such contemplated transfer, promptly deliver new
documents/certificates for such Securities that do not bear the legend set forth in Section 3.9(a)
hereof. The Company shall bear the cost of such opinion of counsel up to a maximum of $1500.

     3.9 Legends. Each of the Investor understand and agree that the certificates
evidencing the Securities may bear one or all of the following legends:

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

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

C-4

 

     4. Pari Passu with All Notes. Each Note shall rank equally without preference or
priority of any kind with each of the Notes issued by the Company to the Investor hereunder. All
payments on account of principal and interest with respect to the Notes and all collateral securing
the Notes shall be applied ratably and proportionately on each such Note on the basis of the
original principal amount of outstanding indebtedness represented by such Note.

     5. Conditions to Closing.

     5.1 Conditions of Each Investor’s Obligations at Closing. The obligations of the
Investor at the Closing are subject to the fulfillment, on or prior to the date of Closing, of each
of the following conditions, any of which may be waived in whole or in part by the Investor, the
waiver of which shall not be effective against any Investor who does not consent in writing
thereto:

     (a) The representations and warranties made by the Company in Section 2 shall be true and
correct when made, and shall be true and correct on the date of Closing with the same force and
effect as if they had been made on and as of the same date.

     (b) The Company shall have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or complied with by it on
or prior to the date of Closing.

     (c) Except for the notices required or permitted to be filed after the date of Closing
pursuant to applicable federal and state securities laws, the Company shall have obtained all
governmental approvals required in connection with the lawful sale and issuance of the Notes and
the Warrants.

     (d) At the Closing, the sale and issuance by the Company, and the purchase by each Investor,
of the Note and the Warrant shall be legally permitted by all laws and regulations to which such
Investor and/or the Company are subject.

     (e) The DSA shall have been executed by all parties thereto and delivered to the Company.

     (f) The Pledge Agreement shall have been executed by all parties thereto and delivered to the
Investor.

     (g) Subject to Section 5.3, closing on the purchase of the convertible debentures of MBL by
the Company (MBL Closing”) shall take place simultaneously with closing hereunder; provided,
however, that at the Company’s option, the MBL Closing (but not closing hereunder) may be postponed
for up to one calendar week as long as the proceeds of the Loan are held by the Company in a
separate account and as long as the Warrants are held by the Company.

     5.2 Conditions to Obligations of the Company. The Company’s obligation to issue and
sell the Notes and the Warrants at the Closing is subject to the fulfillment, to the Company’s
satisfaction, on or prior to the date of Closing, of the following conditions, any of which may be
waived in whole or in part by the Company:

C-5

 

     (a) The representations and warranties made by the Investor in Section 3 shall be true and
correct when made, and shall be true and correct on the date of Closing with the same force and
effect as if they had been made on and as of the same date.

     (b) Except for any notices required or permitted to be filed after the date of Closing
pursuant to applicable federal or state securities laws, the Company shall have obtained all
governmental approvals required in connection with the lawful sale and issuance of the Securities.

     (c) At the Closing, the sale and issuance by the Company, and the purchase by each Investor,
of his/her/its Note and Warrant shall be legally permitted by all laws and regulations to which
such Investor and/or the Company are subject.

     5.3 Delay of MBL Closing. At the Company’s sole option, the MBL Closing (but not
closing hereunder) may be postponed for up to one calendar week provided that (i) the proceeds of
the Loan are held by the Company in a separate account and (ii) the Warrants are held by the
Company pending the MBL Closing. If the MBL Closing does not take place within seven (7) days of
Closing hereunder, then, at the option of the Investor, this Agreement may be terminated in which
event the Company shall pay back to the Investor the Loan proceeds, the Investor shall deliver the
Note to Company and Investor shall not be entitled to receive the Warrants. For purposes of
calculating the seven day period referred to in this sentence, the date of closing hereunder shall
be calculated based on Indian time. By way of example, if closing hereunder takes place on a
Wednesday in the United States, but at the time of closing, it is Thursday in India, the first day
of the seven day period shall be Friday.  

     6. Miscellaneous.

     6.1 Waivers and Amendments. Any provision of this Agreement, any of the Notes, and
any of the Warrants may be amended, waived or modified (either generally or in a particular
instance, either retroactively or prospectively, and either for a specified period of time or
indefinitely), upon the written consent of the Company and of Investor holding a majority of the
aggregate principal amount of the Notes.

     6.2 Governing Law. This Agreement, the Notes and the Warrants shall be governed by
and construed in accordance with Maryland law, without regard to the conflict of laws provisions
thereof.

     6.3 Survival. The representations, warranties, covenants and agreements made herein
shall survive any investigation made by any Investor and the Closing of the transactions
contemplated hereby.

     6.4 Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto.

     6.5 Entire Agreement. This Agreement (including the exhibits attached hereto), the
Notes and the Warrants constitute the full and entire understanding and agreement between the
parties with regard to the subjects hereof and thereof.

C-6

 

     6.6 Notices, etc. All notices and other communications required or permitted
hereunder shall be effective upon receipt, shall be in writing, and may be delivered in person, by
telecopy, electronic mail, overnight delivery service or United States mail, in which event they
may be mailed by first-class, certified or registered, postage prepaid, addressed (a) if to an
Investor, at the Investor’s address as the Investor shall have furnished to the Company in writing,
or, until any such holder so furnishes an address to the Company, then to and at the address of the
last holder of such shares who has so furnished an address to the Company, and a copy of which
shall be likewise delivered to such Investor’s counsel at such address as shall have been furnished
to the Company, or (b) if to the Company, at its address set forth on the signature page hereto, or
at such other address as the Company shall have furnished to the Investor and each such other
holder in writing.

     6.7 Severability of this Agreement. If any provision of this Agreement shall be
judicially determined to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     6.8 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall be deemed to constitute one
instrument.

     6.9 Expenses. Regardless of whether the Closing is effected, each party shall pay all
costs and expenses that it incurs with respect to the negotiation, execution, delivery and
performance of this Agreement; except that the Company shall bear $7,500 of expenses incurred by
the Investor in this transaction.

     6.10 Broker’s Fee. The parties acknowledge that Ferris Baker Watts will be entitled to
a brokers a fee of three percent (3%) of the amount of the Loan to be paid by the Company, but only
if and upon closing of a Business Combination by the Company.

     IN WITNESS WHEREOF, the parties have caused this Note and Warrant Purchase Agreement to be duly
executed and delivered by their proper and duly authorized officers
as of the date and year first
written above.

	 	 	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 	 	INDIA GLOBALIZATION CAPITAL, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/  Ram Mukunda 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Its	 	President	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

C-7

 

	 	 	 	 	 	 	 	 	 
	 	 	INVESTOR:	 	 
	 	 	OLIVEIRA CAPITAL, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	/s/  Steven M. Oliveira	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Title	 	President	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

C-8

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