The General Corporation Law of the State of Delaware allows a corporation to eliminate the personal liability of directors to the corporation or to any of its stockholders for monetary damages for a breach of his fiduciary duty as a director, except in the case where the director breached his duty of loyalty, failed to act in good faith, engaged in intentional misconduct or knowingly violated a law, authorized the payment of a dividend or approved a stock repurchase in violation of Delaware corporate law or obtained an improper personal benefit. The Company has entered into indemnification agreements with each director, which provide that the Company shall, subject to certain exceptions, indemnify and pay, advance or reimburse the costs of defense of such person who is made party to a proceeding by reason of their indemnified capacities. Each indemnified party agrees to repay any payment, advance or reimbursement of expenses made by the Company to such person if it is determined, following the final disposition of the claim, that the person is entitled to indemnification by the Company with respect to a claim for which indemnification was obtained.

 

The nature of the indemnification prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to counterparties. The Company has purchased directors’ and officers’ liability insurance. amount has been accrued in the consolidated balance sheet as at with respect to this indemnity.

 

In the normal course of business, the Company be subject to litigation and claims from customers, suppliers and former employees. Management believes that adequate provisions have been recorded in the accounts, where required. Although it is possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of such contingencies would have a material adverse effect on the financial position, results of operations and cash flows of the Company.

 

 

Purchase obligations recorded on the balance sheet as at consist of insurance installments of to be paid during ( ) ( ).

 

Purchase obligations recorded on the balance sheet as at consist of open non-cancellable purchase orders for raw materials for to be paid during calendar year ( ) ( ).