In addition, the company will receive NIS 1.5m in past due management fees as part of the settlement.
The agreement, reached on 16 December 2011, as part of arbitration proceedings between the other shareholders and the company, also provides that the company will be released from any guarantees provided to banks or other entities regarding payment of Shamir Salads promissory notes, and that representatives of the company will resign from the board of directors of Shamir Salads.
As a result of the agreement, mutual claims made by parties in the arbitration proceeding will be cancelled without any order for expenses, and each party will waive its right to bring additional court proceedings or claims regarding this matter.
In addition, Shamir Salads will indemnify, without limitation as to date or amount, the company and any officers of Shamir Salads who served on behalf of the company, for any liability or expense arising from actions taken by such officers or in matters directly or indirectly related to Shamir Salads.
Completion of the transaction is subject to the agreement being granted the status of an arbitration award, and that award receiving the approval of Tel Aviv District Court.
Source: G Willi-Food International
© FoodBev Media Ltd 2024