SHARE PURCHASE AGREEMENT
 
BETWEEN
 
Clenergen India
 
And
 
Enkem Engineers Private Limited

 
 
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SHARE PURCHASE AGREEMENT

THIS AGREEMENT is executed on this 12th day of December 2009 by and between:

1.
[Clenergen India Private Limite, a company incorporated under the provisions of
the Companies Act, with its registered office at 36 A, Cathedral Garden Road,
Chennai 600 034 ("Clenergen") (hereinafter referred to as the "Purchaser", which
expression shall unless repugnant to the context thereof be deemed to mean and
include its successors in business and assigns, respectively);

2.
Enkem Engineers Private Limited, a company incorporated under the provisions of
the Companies Act with its registered office at _No. 824, Poonnamalleee_High
Road, Chennai 600 010_ ("Enkem") and, (hereinafter  referred to as the "Seller",
which expression shall unless repugnant to the context thereof be deemed to mean
and include their successors in business and assigns, respectively);

3.
United Bio Fuels Private Limited a company incorporated under the provisions of
the Companies Act, with its registered office at 824, Poonnamallee High Road,
Chennai 600 010 (hereinafter referred to as the "Company" which expression shall
unless repugnant to the context thereof be deemed to mean and include its
successors in business and permitted assigns) as the confirming party to this
Agreement.

The Seller and the Purchaser are individually referred to as a "Party"
WHEREAS:

A.
The Company is engaged in the business of [power generation through
biodegradable resources such as poultry litter.]

B.
The Company has at the date hereof, an authorised share capital
of  9000000  equity shares  of Rs. 10 each aggregating to Rs. 90 Milllions  and
that the Seller own33.5%of the fully paid up subscribed share capital of the
Company on a Fully Diluted Basis aggregating to 7320564 equity shares of Rs. 10
each (collectively the "Shares").

C.
It is the intention of the Parties that upon the consummation of the sale and
purchase of the shares pursuant to this Agreement, the Purchaser shall own the
entire issued and subscribed share capital of the Company, together with all the
rights, economic value and benefits pertaining thereto.

 
D.
The Seller has agreed to sell to the Purchaser, and the Purchaser has agreed to
purchase from the Seller the shareholding in the Company, for the Purchase
Consideration (as defined hereunder) in accordance with the terms and conditions
set forth in this Agreement ("Share Purchase")

   
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL PROMISES SET OUT BELOW, THE PARTIES
AGREE AS FOLLOWS:
 
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1. 
DEFINITIONS AND INTERPRETATION

1.1 
Definitions

The following words and expressions shall, unless the context otherwise
requires, have the meanings set out below:

"Accounts" means the audited financial statements of the Company comprising the
balance sheet of the Company, the consolidated balance sheet, profit and loss
account and cash flow statement, together with the notes thereon, directors'
report and auditors' certificate, as at and for the financial period ended on
the Accounts Date;

"Accounts Date" means 31 March, 2009

"Affiliate" means any entity that controls or is controlled by, directly or
indirectly, or is under common control of a Party, where "control" and
"controlled by" means the possession of the power to influence the management
and policies of such entity, whether through the ownership of voting stock of
such entity, by contract or otherwise;

"Agreement" means this share purchase agreement including all Schedules;

"Articles" means the articles of association of the Company;

"Assets" means the assets/properties of the Company or any part(s) thereof and
"Asset" means any one of them

"Board of Directors" shall mean the board of directors of the Company;

"Business Day" means any day except a Saturday, Sunday or other day on which
commercial banks in India and Mauritius and  are authorized or permitted by
applicable law to close.
 
"Closing" means the  of the Share Purchase in accordance with Clause 6 and the
recording of the Purchasers as the registered holders of the Shares in the
register of members of the Company;

"Closing Date" means the date on which Closing takes place which shall be on the
_14th December 2009 Business Day following the date on which the Seller notify
the Purchaser of the fulfilment by the Seller of its obligations in accordance
with Clause 4 or such other date as may be notified to the Purchaser by the
Seller;

"Company" shall have the meaning ascribed to it in the preamble of this
Agreement;
 
"Companies Act" means the Companies Act, 1956;
 
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"Conditions Precedent" shall have the meaning ascribed to it in Clause 4.1;

"Disclosure Schedule" shall have the meaning ascribed to it in Clause 7.7;

"Encumbrance" means any mortgage, charge (whether fixed or floating), pledge,
lien, security interest or other third party right or interest (legal or
equitable) over or in respect of the relevant Asset, security or right including
the Shares;

"Financials" means:

(i)
the audited  balance sheet as of March 31, 2009, and the related  statements of
income, cash flow and other information that are more particularly set out in
Schedule III;

"Government Entity" means and includes central/federal, state and local
authorities to which the Parties are subject;

"Interim Period" means the period between the date of this Agreement and the
earlier of the date of termination of this Agreement and the Closing Date;

"Long Stop Date" means December 14 th 2009 or such other date decided
exclusively by the Purchasers;

"Material Adverse Effect" means any change, event or effect other than in the
ordinary course of business and consistent with past practice, that is, likely
to be materially adverse to the business, assets (including intangible assets),
liabilities, financial condition, property prospects or results of operation of
the Company taken as a whole.

"Memorandum" means the memorandum of association of the Company;

"Person" means any company or association or body of individuals, whether
incorporated or not;

"Purchase Consideration" shall have the meaning ascribed to it in Clause 3.1;

"RBI" means the Reserve Bank of India;

"Rs." or "Rupees" means the lawful currency of India;

"Share Purchase" shall have the meaning ascribed to it in Recital D;

"Shares" means 909,250 unpledged equity shares of Rs. 10 each of the Company,
issued and held by the Seller, constituting the shareholding of the Seller in
the  Company, including all legal and beneficial interest in the Shares and
equity shares held by the financial investors who have confirmed the terms  laid
down in the Offer Letter issued by Clenergen to the Company which would  along
with pledged shares together with the Seller’s Shareholding encompass 100% of
the issued and paid up capital of the Company
 
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"Tax" shall means (a) any and all taxes, assessments and other charges, duties,
impositions and similar liabilities imposed by any Government Entity, including
taxes based upon or measured by gross receipts, income, profits, sales and value
added, withholding, payroll, excise and property taxes, together with all
interest, penalties and additions imposed with respect to such amounts; (b) any
liability for the payment of any amounts by the Company as a result of being a
member of an affiliated, consolidated, combined or unitary group for any period;
and (c) any liability for the payment of any amounts by the Company as a result
of any express obligation to indemnify any other Person or as a result of any
obligation under any agreement or arrangement with any other Person with respect
to such amounts and including any liability for Taxes of a predecessor entity;
and

"Warranties" means the representations, warranties, covenants and undertakings
set out in this Agreement and particularly in Clause 7 and Schedule IV.

1.2 
Interpretation

 
In this Agreement unless the context otherwise requires:

 
(a)
references to any statute or statutory provision or order or regulation made
there under shall include that statute, provision, order or regulation as
amended, modified, re-enacted or replaced from time to time whether before or
after the date hereof;

 
(b)
headings to Clauses are for information only and shall not form part of the
operative provisions of this Agreement and shall not be taken into consideration
in its interpretation or construction;

 
(c)
references to Recitals, Clauses or Schedules are, unless the context otherwise
requires, to recitals to, clauses of or schedules to this Agreement;

 
(d)
unless the context otherwise requires, reference to one gender includes a
reference to the other, words importing the singular include the plural and vice
versa;

 
(e)
references to the words "include" or "including" shall be construed as being
suffixed by the words "without limitation";

 
(f)
a reference to a day, month or year is relevant to a day, month or year in
accordance with the Gregorian calendar; unless otherwise specified in this
Agreement;

 
(g)
a reference to an agreement, deed, instrument or other document include the same
as amended, novated, supplemented, varied or replaced from time to time;

 
(h)
the expression "writing" or "written" shall include communications by notice,
telex, telegram, facsimile (fax) and letter; and

 
(i)
Unless the context otherwise requires, reference to one gender includes a
reference to the other, words importing the singular include the plural and vice
versa

 
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(J)
The obligations and liabilities of the Sellers under this Agreement shall be
joint and several.

2. 
SHARE PURCHASE

2.1
In accordance with and subject to the terms of this Agreement, the Seller shall
sell, transfer, convey and the Purchasers shall purchase the Shares from the
Seller, on and with effect from the Closing Date, free from all Encumbrances
except those ____ of Equity Shares which are pledged with IREDA and together
with all accrued benefits and attached rights and all dividends declared after
the Accounts Date in respect of the Shares. The Seller shall ensure and take all
necessary steps to have the pledged shares transferred to the Sellers herein
upon closure of the loan outstanding to IREDA for a consideration of Re. 1/-

2.2
The shareholding of the Company after successful consummation of the Closing,and
considering the pledged shares are subsequently transferred after closing date
by IREDA shall be held by the Purchaser herein.

3. 
PURCHASE CONSIDERATION

3.1
In consideration for the sale and transfer of the Shares by the Seller as set
out in Clause 2, the Purchasers shall pay a total consideration of Rs. 7.5
Millions ("Purchase Consideration") to the Seller and to the other financial
shareholders, details of which are set out in Schedule II (The amounts are
already placed  with ABN Amro Bank N.V., Harrington Road, Chennai 600031.  The
Purchasers hereby agree to  pay a sum not exceeding Rs. 70 Millions towards the
outstanding loans including interest and other charges in respect of the sums
due to IREDA  On closing date. The Purchasers shall also make a payment of Rs. 5
Millions to the Seller herein who undertakes to pay off all the current and
other liabilities of the Company besides the sums due to IREDA.  Any further
liability till the date of execution of this agreement shall be to the account
of the Seller.

3.2
The Purchasers shall be deemed to have fulfilled their obligations under this
Clause 3 once the Purchase Consideration has been transferred or remitted to the
respective accounts of the Seller in accordance with Clause 6.

 
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4.
CONDITIONS PRECEDENT TO CLOSING

4.1
The Purchasers obligation to purchase the Shares and remit the Purchase
Consideration in accordance with Clause 6 is subject to the fulfilment on or
prior to the Long Stop Date, of each of the following conditions any one or part
of which may be waived in writing exclusively by the Purchasers, and the Sellers
shall, and where applicable, shall cause the Company to satisfy the following
conditions ("Conditions"):

 
 
­(a)
The Sellers and the Purchasers shall have obtained all approvals as stipulated
in Schedule I--which are required in connection with the execution and delivery
of the Agreement and consummation of the transactions contemplated by this
Agreement and the certified copies of the same shall have been delivered to each
of the Purchaser.

 
(b)
All loan balances outstanding to IREDA including overdue balances and interest/
overdue interest have been settled or approvals from IREDA shall have been
obtained by the Seller and as part of the overall consideration for acquisition
of the Company, the Purchases shall provide a sum not exceeding Rs. 70Millions
towards the One Time Settlement relating to the loan from IREDA.

 
(c)
The Seller shall have obtained written resignation letters from   P..Subramani &
Peter Stepany , as directors of the Company effective as at the end of the
Closing Date.

 
(f)
The Company providing the Purchasers with certified true copies of the extract
of the resolutions passed in a meeting of its board of directors on closing
date:

 
(i)
agreeing to effect the transfer of the Shares upon the duly executed and stamped
share transfer forms along with the original share certificates being delivered
to it; and

 
(ii)
approving the Company's execution of this Agreement and conferring authority on
MrP.Subramani  the Managing Director of the Company, to sign and duly execute
this Agreement.

 
The Company shall undertake and provide an undertaking in the format mutually
agreed by all the parties to the effect that all legal requirements in respect
of its allotment of shares to the shareholders is in order and further as a
token of the undertaking, authorizes the purchasers to withhold a sum of Rs. 0.5
Millions out of the 5 Millions payable to the Company/ Enkem for a period of 120
days from the date of execution of this agreement .  Upon the completion of 120
days as aforementioned, the said sum net of any outflow in respect of matters
relating to allotment of shares shall be released by the purchaser to the seller
herein.
 
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(g)
Copy of a certificate to be signed on the Closing Date by Seller, to the effect
that as of the Closing Date the Company and the Sellers have performed and
complied in all material respects with all covenants and obligations under this
Agreement as necessarily required and agreed to be performed and complied with
by such Party as of the Closing Date; and

 
(h)
The Sellers shall procure that the Company performs the following corporate,
regulatory and other actions till the Closing Date:

 
(i)
Maintenance and updation of all statutory registers required to be maintained
under the Companies Act;

 
(ii)
Undertaking all statutory filings as may be required under the Companies Act.

4.2
Other than such Conditions as are waived by the Purchasers, the Sellers shall,
by the Long Stop Date notify the Purchaser, that all the Conditions under Clause
4.2, and 4.3 have been satisfied.

4.3
If all the Conditions have been satisfactorily fulfilled or waived by the Long
Stop Date, the Closing shall take place on the Closing Date in accordance with
Clause 6.

4.4
If all the Conditions have not been satisfactorily fulfilled or waived by the
Long Stop Date, the respective obligations of the Parties shall cease and the
Purchasers may in their sole discretion terminate this Agreement and except in
relation to any breach of any provision of this Agreement prior thereto no Party
shall have any claim against any other Party.

5. 
PERIOD UNTIL CLOSING

5.1 
Conduct of Business of the Company

During the Interim Period, the Sellers agree to conduct the business of the
Company in a diligent manner and in accordance with sound and prudent business
practices. During the Interim Period, the Sellers shall, within 3 Business Days
promptly notify each of the Purchasers of: (a) any event, occurrence or
emergency not in the ordinary course of business of the Company; or (b)
any event which could have a materially negative effect on the financial
condition or the operations of the Company; or (c) any matter or thing which may
or has come to the knowledge of the Sellers and which is inconsistent with any
of the representations and warranties made by the Sellers under this Agreement
or is likely to affect the judgement of each of the Purchaser.  Except as
expressly contemplated by this Agreement, the Sellers shall ensure that the
Company shall not, without the prior written consent of the Purchaser during the
offer validity period :

 
(a)
Undertake any transaction except in the ordinary course of business as conducted
on that date and consistent with past practices;

 
(b)
Make any modifications, amendments or changes to its articles and memorandum of
association;

 
(c)
Undertake any expenditure, transaction or commitment

 
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(d)
Adopt or make changes in any accounting method in respect of taxes, agreement or
settlement of any claim or assessment in respect of taxes;

 
(e)
Issue or authorize issuance of any other securities in respect of, in lieu of or
in substitution for shares in the Company;

 
(f)
sell, lease, license or otherwise  dispose of any of the Assets of the Company,
including the sale of any accounts receivable of the Company or its Subsidiary,
or any creation of any security interest in such assets or properties, in excess
of monetary limits which are equivalent to the amount in Clause 5.1(c);

 
(g)
Make any loan to any person, or purchase any debt securities of any person in
excess of the monetary limits which are equivalent to the amount in Clause
5.1(c);

 
(h)
waive or release any right or claim for an amount equivalent to the amount in
Clause 5.1(c), including any waiver, release or other compromise of any account
receivable of the Company;

(i) 
Commence or settle any lawsuit;

 
(j)
Sell, lease, license or transfer to any person any intellectual property rights
of the Company or enter into any transaction relating to such rights in excess
of monetary limits which are equivalent to the amount in Clause 5.1(c);

(k) 
Grant any sublease of any leased property of the Company;

 
(l)
agree to acquire by merging or consolidating with, or by purchasing Assets or
equity securities of, any business or corporation, partnership, association or
other business organization or division thereof, or other acquisition or agree
to acquire any assets or any equity securities that are material, individually
or in the aggregate, to the business of the Company;

 
(m)
adopt or amend any Company employee plan, execute or amend any employee
agreement, or pay or agree to pay any bonus or special remuneration to any
director or employee, or increase or modify the salaries, wage rates or other
compensation (including any equity based compensation) of any employee;

 
(n)
increase the salaries of employees nor provide any extraordinary employment
benefits to the employees of the Company without prior written consent of the
Purchaser

 
(o)
promote or effect similar change to the employment status or title of any
employee;

 
(p)
alter any interest in a subsidiary or any corporation, association, joint
venture, partnership or business entity in which the Company directly or through
each other holds any interest which may amount to a Material Adverse Effect; or

 
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(q)
agree to do any of the things described in the preceding sub-clauses of this
Clause 5.1

    
5.2
Access to Information

The Sellers shall, during the Interim Period, afford the Purchaser and its
representatives, as notified, access to all of the properties, books, contracts
and records of the Company, all other information concerning the Company as the
Purchaser may  request, and information relating to all employees of the
Company.  All information disclosed by the Company to the Purchasers and/or
their representatives, pursuant to this Clause 5.2 shall be provided on a
strictly confidential basis and shall be held in trust by the Purchasers and/or
their representatives and shall be kept confidential by the Purchasers and/or
their representatives except the following information which:

 
(a)
is required to be disclosed by, under or pursuant to any law in force or
pursuant to any order, decree, judgment, award, etc., of any competent court,
tribunal, board, government or statutory authority, etc.;

 
(b)
is public knowledge or which subsequently becomes public knowledge, other than
by way of a breach of the terms of this Agreement;

 
(c)
is available to the Purchaser and/or its representatives prior to its disclosure
by the Company under the terms of this Agreement or which becomes known to the
Purchaser and/or its representatives prior to or subsequent to such disclosure
without similar restrictions from a source other than the Company, as evidenced
by records;

(d)
The Company agrees in writing may be disclosed; or

 
(e)
is or becomes available in writing to the Purchaser from sources which to the
Purchaser's knowledge are under no obligation of confidentiality to the Company.

6. 
CLOSING

6.1 
Closing Actions

Subject to the terms of this Agreement, Closing shall take place at a mutually
agreed location in Chennai  on the Closing Date and the following transactions
shall deemed to be consummated simultaneously:

 
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6.1.1 
Certificates

The Sellers, shall hand over the originals of the documents mentioned in Clause
4.1 (g), (h) and (i) to the  Purchaser; and

6.1.2 
Execution of share transfer documents

Enkem shall execute and deliver to [the relevant Purchaser] necessary forms and
documents including Form FC-TRS, consent letters, undertakings, etc., in
accordance with Foreign Exchange Management ACT

The Purchaser shall file the duly completed Form FC-TRS together with all
relevant documents after closing date.

6.1.3
Share transfer forms

The Seller shall execute and deliver to the Purchasers duly executed and valid
share transfer forms and original share certificates in respect of the Shares
free and clear of all Encumbrances.

 
6.1.4
Purchase Consideration

 
Purchaser shall cause the remittance of their respective share of the Purchase
Consideration to the bank accounts of the Seller  in such proportions and in
accordance with the bank account details stated in the Schedule V.on  closing
date

 
6.1.5
Meeting of the Board of Directors

The Seller shall cause the Company to convene a meeting of the Board of
Directors on  the date of payment of the purchase consideration  to:

 
(a)
approve the transfer of the Shares in favour of the Purchaser and to duly
endorse and deliver original share certificates for the Shares evidencing the
Purchasers as the lawful and beneficial owners of the Shares;

 
(b)
enter the name of the Purchasers\as members in the register of members
maintained by the Company in accordance with the requirements of the Act;

 
(c)
approve the appointment of Mark Quinn and Abhilash Kamti nominees of Purchaser
as additional directors of the Company effective as of the Closing Date;

 
(d)
accept the resignations of all the directors and additional directors (except
the nominees of the Purchasers appointed in accordance with 6.1.5 (c) above), of
the Company with effect from the end of the Closing Date;

 
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(e)
revoke all mandates to bankers existing as on the Closing Date, and granting
authority in favour of such persons as the Purchasers may nominate to operate
the bank accounts thereof;

 
(f)
revoke all power of attorneys issued by the Company and existing as on the
Closing Date; and

 
7. 
WARRANTIES 

7.1
The Seller are the holders of 33.5% the issued share capital of the Company, and
are therefore competent to give Warranties on their own behalf as well as in
respect of the Company as set out in Schedule IV.

7.2
The Seller hereby represent, warrant, covenant and undertake to the Purchasers
on their behalf and on behalf of the Company (so as to bind the Seller and their
respective legal representatives, and assigns) as follows:

 
(a)
All of the Shares are fully paid, or properly credited as fully paid, and have
been validly issued to the all the existing shareholders of the company, whose
details are set forth in Schedule  II to this Agreement.

 
(b)
The Seller is the absolute legal and beneficial owners of the shares and has
full legal right, power and authority to enter into, execute and deliver this
Agreement and to perform the obligations, undertakings and transactions set
forth herein, and this Agreement has been duly and validly executed and
delivered by the Seller and constitutes a legal, valid and binding obligation,
enforceable against them in accordance with its terms;

 
(c)
The Shares owned by the Seller are free and clear of all Encumbrances (excluding
those pledged to IREDA. )

 
(d)
Except for the transaction contemplated by this Agreement there is no
subscription, option, warrant, call-right, agreement or commitment outstanding
in relation to the sale or transfer of the Shares;

 
(e)
The Seller has not entered into any contracts, arrangements or engagements with
any third party(ie) or done any acts on behalf of the Company which may at a
later stage lead to any material liabilities for the Company other than the acts
done by it in the usual and ordinary course of business;

 
(f)
The transfer of the unpledged  Shares to  the  Purchaser hereunder will convey
to the  Purchaser good and marketable title to the Shares, free and clear of all
pledges, security interests, options, equities, liens, charges, Encumbrances,
claims or other third party rights (including rights of pre emption) whatsoever;

 
(g)
All claims/ penalties if any, claimed by creditors including related parties of
the Company have been settled as at the Closing Date and the relevant no due
certificates have been obtained; The Seller shall provide an undertaking to the
effect that on the payment of Rs. 5 Millions, all liabilities of the Company
besides the sums due to IREDA shall stand extinguished and the seller
indemnifies the Purchasers and the Company from any statutory or non statutory
liability or financial obligation pertaining to the period upto the date of
transfer of shares to the purchasers.

 
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(h)
There is no funding commitment to AHIMSA Biofuels except  a sum of  Rs.
4,500,000 paid in 2006-07;

 
(i)
The amounts disclosed as unabsorbed depreciation available for carry forward are
complete and accurate;

Neither the execution and delivery of this Agreement by the Seller nor the
consummation by the Seller of the transactions contemplated hereby will violate,
conflict with or result in the breach of any of the terms, conditions or
provisions of the memorandum and articles of association of the Company or any
agreement to which the Company or the Seller is a party or any law, regulation,
order, ruling, decree, judgment, arbitration award or stipulation to which the
Company or the Sellers are subject, or constitute a default there under which
would result in the creation or imposition of any lien, charge, Encumbrance or
other third party interest there under upon the Shares.

 
(n)
The Financials are true and fair and in accordance with the Accounting Standards
prescribed by the Institute of Chartered Accountants of India and have been
prepared on a consistent basis throughout the periods indicated and consistent
with each other. The Financials present fairly the Company's consolidated
financial condition, operating results and cash flows as of the dates and during
the periods indicated therein.

7.4
Without restricting the rights of the Purchaser or the ability of the Purchaser
to claim damages on any basis available to it in the event that any of the
Warranties prove to be untrue or misleading or are breached (as the case may be)
the Seller shall pay to the Purchaser on demand the amount as set out under
Clause 8 of this Agreement together with all costs and expenses incurred by the
Purchaser as a result of such breach.

7.5
Each of the Warranties shall be construed as a separate representation,
warranty, covenant or undertaking (as the case may be) and (save as expressly
provided to the contrary) shall not be limited by the terms of any of the other
Warranties or by any other term of this Agreement.

7.6
The Warranties are only qualified by the facts and circumstances fairly,
specifically and accurately disclosed in the disclosure schedule delivered by
the Company and the Sellers to the Purchasers concurrently with the execution of
this Agreement, attached as Schedule VI. ("Disclosure Schedule")

7.7
Unless any information or fact is disclosed in the Disclosure Schedule, the
Seller shall not invoke any Purchaser's knowledge (actual, constructive or
imputed) of such fact or information, which might make the Warranties untrue,
inaccurate or misleading.

 
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7.8
The Seller acknowledge and confirm that the Purchaser has entered into this
Agreement based on the Warranties, and the correctness of all the information
provided by the Sellers to the Purchasers.

7.9
The Seller shall give to the Purchasers and its representatives both before and
after Closing all such information and documentation relating to the Company as
the Purchaser shall reasonably require enabling it to satisfy itself as to the
accuracy and observance of the Warranties.

7.10
The Seller  agree and undertake not to do or cause to be done any act or thing
between the date of this Agreement and the Closing Date which would result the
Warranties being rendered completely or partially untrue or incorrect.

8. 
INDEMNIFICATION

8.1 
Right of Indemnification

The Seller ("Indemnifying Party") shall indemnify, defend and hold harmless the
Purchasers, their Affiliates, shareholders, directors, officers, employees,
representatives, agents, contractors or licensees (each an "Indemnified Party"
and together the "Indemnified Parties"), from and against any and all suits,
sanctions, legal proceedings, claims, assessments, judgments, damages,
penalties, fines, liabilities, demands, reasonable out-of-pocket expenses of
whatever kind and losses incurred or sustained by the Indemnified Parties as a
result of, arising from, or in connection with,  or relating to, directly or
indirectly: (a) a breach of representations and warranties made by the
Indemnifying Party under this Agreement; and/or (b) the non-performance (in
whole or in part) by the Indemnifying Party of any of its covenants, obligations
or undertakings contained in this Agreement.

Provided however that, neither Party shall be liable to the other for any
indirect and/or consequential damages as well as loss of production, loss of
overheads or profits in any manner or form arising from this Agreement.

8.2 
Indemnification Procedure

8.2.1
If any Indemnified Party is entitled to indemnification hereunder, such
Indemnified Party shall as soon as reasonably practicable give notice to the
Indemnifying Party against whom the indemnity is claimed of the losses suffered
by the Indemnified Party as provided in Clause 8.1 above and/or any claim or of
the commencement of any proceeding against the Company or the Indemnified Party,
brought by any third party with respect to which such Indemnified Party, seeks
indemnification pursuant hereto. Such notice shall describe such losses;
provided, however, that any delay to so notify the Indemnifying Party shall not
relieve the Indemnifying Party from any obligation or liability.

 
13

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8.2.2
The Indemnifying Party shall forthwith upon receipt of such notice, reimburse to
the Indemnified Party an amount equal to all losses provided that the
Indemnifying Party shall have the right, exercisable by giving written notice to
an Indemnified Party within 15 (fifteen) days after the receipt of written
notice from such Indemnified Party of such claim or proceeding, to assume, at
the expense of the Indemnifying Party the defense of any such claim or
proceeding, with the assistance of counsel reasonably satisfactory to such
Indemnified Party. Subject to being fully indemnified as aforesaid, the
Indemnified Party shall not consent to entry of any judgment or enter into any
settlement, without the prior written approval of the Indemnifying Party. The
Indemnifying Party shall not consent to entry of any judgment or enter into any
settlement that does not include as an unconditional term thereof a release by
the claimant or plaintiff to such Indemnified Party, in form and substance
satisfactory to the Indemnified Party, from all liability in respect of such
claim or proceeding.

 
9. 
TERM AND TERMINATION

9.1 
Term

This agreement shall come into force on the execution date and shall remain
valid and binding unless terminated in accordance with the provisions of this
Agreement.

9.3 
Termination

If at any time prior to or on Closing:

(a) 
a breach of any of the Warranties shall come to the notice of any Purchaser;

(b)
there shall occur any act or event after the date hereof, which upon Closing
would or might constitute a breach of any of the Warranties;

(c)
there is any breach or non-fulfilment by the Sellers of their obligations
hereunder which is incapable of remedy or, if capable of remedy, is not remedied
by the Sellers by the Closing Date hereunder or (if earlier) within 7 days after
notice thereof from  Purchaser requiring the same to be remedied; or

(d)
If a Material Adverse Effect occurs, or if any law or order restricts or
prohibits ownership or operation of any portion of the business of the Company
by the Purchaser,

then in any such case the Purchasers shall be entitled (in addition and without
prejudice to any other rights or remedies it may have against the Sellers under
this Agreement or otherwise) to elect by notice in writing to the Sellers not to
complete the Share Purchase.

10.
ANNOUNCEMENTS AND ADVERSE PUBLICITY

 
Neither the making of this Agreement nor its terms shall be disclosed by either
Party without the prior consent of the other Party unless disclosure is required
by law or by the rules and regulations of any relevant stock exchange or
required to be disclosed to employees, officers, legal or financial consultants
on a "need to know basis", and disclosure shall then only be made:

(a)
after prior consultation with the other Party as to the terms of such
disclosure;

(b) 
strictly in accordance with any agreement as to the terms of disclosure; and

 
14

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(c)
only to the person or persons and in the manner required by law or as otherwise
agreed between the Parties hereto.

11.
COSTS

11.1
Save as expressly otherwise provided in this Agreement, each Party shall bear
its own legal, accountancy and other costs, charges and expenses connected with
the negotiation, preparation and implementation of this Agreement and any other
document incidental to or referred to in this Agreement.

11.2
The cost of any transfer, recording, registration and other fees, and any
similar Taxes (including stamp duty payable on share transfer forms and selling
commission) and fees which become payable in connection with the Share Purchase
under applicable law shall be borne by the Purchaser

12. 
EFFECT OF CLOSING

 
The terms of this Agreement shall in so far as not performed at Closing and
subject as specifically otherwise provided in this Agreement continue in force
after and notwithstanding the Closing.

13. 
ENTIRE AGREEMENT

 
This Agreement, the Schedules attached hereto and the documents and instruments
and other agreements among the Parties to this Agreement:  (a) constitute the
entire agreement among the Parties with respect to the subject matter hereof and
supersede all prior agreements and understandings both written and oral, among
the Parties with respect to the subject matter contained in this Agreement;
(b) are not intended to confer upon any other Person any rights or remedies
hereunder; and (c) shall not be assigned by operation of law or otherwise.

14. 
WAIVER AND AMENDMENT

14.1
No waiver of any term, provision or condition of this Agreement shall be
effective unless such waiver is evidenced in writing and signed by the waiving
Party.

14.2
No omission or delay on the part of any Party in exercising any right, power or
privilege under this Agreement shall operate as a waiver, nor shall any single
or partial exercise of any such right, power or privilege preclude any other or
further exercise thereof or of any other right, power or privilege.  The rights
and remedies herein provided are cumulative with and not exclusive of any rights
or remedies provided by law.

14.3
No amendment or modification to this Agreement shall be effective unless made in
writing and signed by the Parties.

 
15

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15. 
NOTICES

15.1
Save as specifically otherwise provided in this Agreement any notice, demand or
other communication to be served under this Agreement may be served upon any
Party by posting by registered acknowledgement due or delivering the same by
courier or sending the same by facsimile transmission to such Party at its
address or facsimile number given below, or at such other address or number as
it may from time to time notify in writing to the other Party.

S. No.
 
Name of the
party
 
Address 
 
Phone/Facsimile 
1.
 
Seller
 
Enkem Engineers Pvt Ltd
 
[_PH                   :
       
824, Poonamalle High Road
 
43307284-
       
Chennai – 600 010
 
86_,Fax
            :26411788_]              
2.
 
Purchaser
 
ClenergenIndiaPvtLtd
36A,Cathedral Garden Road
 
[_Ph                   :
40509200_, Fax
       
Chennai – 600 034
 
40509300_]
            [___]

15.2
A notice or demand served by registered acknowledgement due post or courier
shall be deemed duly served [2] Business Days after posting and a notice or
demand sent by facsimile transmission shall be deemed to have been served at the
time of transmission and in proving service of the same it will be sufficient to
prove, in the case of a letter, that such letter was sent properly by registered
post, addressed and placed in the post, in the case of courier, that the letter
was properly addressed and handed over to the courier company and, in the case
of a facsimile transmission, that such facsimile was duly transmitted to a
current facsimile number of the addressee at the address referred to above.

16. 
COUNTERPARTS

This Agreement may be executed in any number of counterparts and by the Parties
on separate counterparts, each of which when so executed and delivered shall be
an original, but all the counterparts shall together constitute one and the same
instrument.

17. 
GOVERNING LAW AND DISPUTE RESOLUTION

17.1 
Governing Law; Jurisdiction

This Agreement shall be governed by and construed in accordance with the Indian
law without giving effect to the conflicts of law’s provisions thereof.  Subject
to Clause 15.2 below, courts in Chennai alone shall have exclusive jurisdiction
with respect to any matter under, incidental to or in any manner relating to
this Agreement.
 
16

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17.2 
Dispute Resolution

 
(a)
The Parties shall endeavour to settle any dispute arising in connection with the
interpretation, performance, termination of this Agreement, or otherwise in
connection with this Agreement, through friendly consultations and negotiations.

 
(b)
If no settlement can be reached through friendly consultations and negotiations
within [20] days of either Party delivering a notice of the dispute to the other
Party, then such matter will be finally settled by arbitration The Parties shall
settle all disputes by arbitration in accordance with the Arbitration and
Conciliation Act, 1996 by 3 arbitrators appointed in accordance with (c)
below.  The Parties agree with respect to such arbitration that:

(i) 
the arbitration proceedings shall be conducted in English;

(ii) 
the place of arbitration shall be Chennai ;

 
(iii)
there shall be 3 arbitrators, with each disputing party having the right to
appoint 1 arbitrator each and the third arbitrator being appointed by the 2
arbitrators appointed in accordance with this Clause and shall serve as the
presiding arbitrator of the arbitral tribunal;

 
(iv)
the arbitration award shall be final and binding on the Parties, and enforceable
in accordance with its terms.  The arbitrators shall make a reasoned award;

 
(v)
the costs of arbitration shall be borne as determined in the arbitration
award.  If a Party is required to enforce an arbitral award by legal action of
any kind, the Party against whom such legal action is taken shall pay all
reasonable costs and expenses and attorneys fees, including any cost of
additional litigation or arbitration taken by the Party seeking to enforce the
award; and

 
(vi)
when any dispute occurs which is submitted to arbitration, except for the matter
under dispute, the Parties shall continue to exercise their remaining respective
rights and fulfil their remaining obligations under this Agreement.

18. 
INVALIDITY

If at any time any one or more of the provisions of this Agreement is or becomes
invalid, illegal or unenforceable in any respect under any law, the validity,
legality and enforceability of the remaining provisions of this Agreement shall
not be in any way affected or impaired thereby.

19. 
CONFIDENTIALITY

19.1
Neither the making of this Agreement nor its terms shall be disclosed by either
Party hereto without the prior consent of the other Party unless disclosure is
required by law and disclosure shall then only be made:

 
17

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(a)
after prior consultation with the other Party as to the terms of such
disclosure;

(b) 
Strictly in accordance with any agreement as to the terms of disclosure; and

 
(c)
only to the person or persons and in the manner required by law or as otherwise
agreed between the parties hereto.

19.2
The Purchasers warrants that it shall keep confidential all information provided
to it by or on behalf of the Sellers or otherwise obtained by it in connection
with this Agreement which relates to the Sellers.

19.3
The Seller warrant that they shall keep confidential all information provided to
them by or on behalf of the Purchaser or otherwise obtained by them in
connection with this Agreement which relates to Purchaser.

19.4
Nothing in this Clause prevents any announcement being made or any confidential
information being disclosed:

 
(a)
with the written approval of the other Party, which in the case of any
announcement shall not be unreasonably withheld or delayed; or

 
(b)
to the extent required by law or any competent regulatory body, but a Party
required to disclose any confidential information shall promptly notify the
other Party, where practicable and lawful to do so, before disclosure occurs and
co-operate with the other Party regarding the timing and content of such
disclosure or any action which the other Party may reasonably elect to take to
challenge the validity of such requirement; or

 
(c)
by the Sellers or Purchasers to any of their Affiliates which adheres to the
terms of this Clause.

19.5 
Nothing in this Clause prevents disclosure of confidential information by any
Party:

 
(a)
to the extent that the information is in or comes into the public domain other
than as a result of a breach of any undertaking or duty of confidentiality by
that Party ; or

 
(b)
to that Party's professional advisers, auditors or bankers, but before any
disclosure to any such person the relevant Party shall procure that he is made
aware of the terms of this clause and shall use its best endeavours to procure
that such person adheres to those terms as if he were bound by the provisions of
this Clause.

19.6
The Parties agree that the provisions of this Clause 19 shall survive the
expiration/termination of this Agreement and shall be binding on the Parties for
period of  1year, from the expiry/termination of this Agreement.

 
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[EXECUTION PAGES FOLLOW]
        

 
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IN WITNESS WHEREOF this Agreement has been executed on the 12th day of December
2009

SELLERS
               
By:
/s/P. Subramani
     
P. Subramani
                       
PURCHASER
               
By:
/s/Mark LM Quinn
       
Mark LM Quinn
         
COMPANY
               
By:
/s/P. Subramani
     
P. Subramani
                 
Witness
   
Witness

 
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SCHEDULE I

APPROVALS  REQUIRED INCONNECTION WITH THIS AGREEMENT

a.  
IREDA OTS Letter

b.  
Board resolution of Enkem  authorising  P.Subramani  to sign this agreement

c.  
Letter of Acknowledgment for this transaction  from remaining shareholders

d.  
Board resolution of UBF to conclude  the transaction with Clenergen

e.  
Clenergen’s Board Resolution authorising  the acquisition and  the signatory to
enter into this agreement

 
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SCHEDULE –II

 SHARE HOLDING IN THE COMPANY

S.No.
 
Name of the Shareholder
 
No of Shares
 
1
 
Enkem Engineers Private Limited
    24,56,700  
2
 
Entec Environmental Technology Unweltechnok GMBH (Liquidated)
    14,95,185  
3
 
Lao Tzu Ventures
3rd Floor, Lescascades, Edith Cavell street, Port Louis Mauritius
    4,56,953  
4
 
Green partners llc
515 madison avenue, suite 1201 Newyork ny-1022
    16,86,647  
5
 
Mattehorn Capital
    1,95,025  
6
 
Vinod Sethi
210, Veer Sarvarkar Marg, Neldharan, Flat no 11, Mumbai 16
    1,00,000  
7
 
Thomas Stepany,
Hauptwohnistz. Lizenberg, 28B, Schwarzach, Austria-6858
    2,30,054  
8
 
Astrid Stepany
    7,00,000      
Total
    73,20,564  

 
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Schedule III –  SELLER'S PROPORTION OF PURCHASE CONSIDERTAION FOR UNPLEDGED
SHARES

Shareholders
 
Number of
shares
   
Amount of
Consideration
   
Bank
Account
Details
   
SWIFT
Code/Wire
Transfer
Instructions
 
Enkem
    9,09,255    
Re.1.0
      -----       -------  
TOTAL
    9,09,255       1.0                  

OTHER SHARE HOLDERS WHO HAVE PURCHASE CONSIDERATION FOR UNPLEDGED SHARES

Shareholders
 
Number of
shares
   
Amount of
Consideration
 
Bank Account Details & Transfer
instructions 
Green Partners LLC
    16,86,647       37,55,150  
Green Partners LLC
Bank of America
11 West  54 th Street, New York, NY
ABA Routing Number : 026 009 593
Swift Code :BOFA  US 3 N
Account number ; 0000 0104 0944
Lao Tzu Ventures
    4,56,953       10,17,360  
Vinod Sethi
Citibank   # 91
1155 Avenue of the Americas at 45 th street
New York,Ny 10036
Account # 23206087
ABA # 021000089
Mattehorn Capital
    1,95,025       434203  
Vinod Sethi
Citibank   # 91
1155 Avenue of the Americas at 45 th street
New York,Ny 10036
Account # 23206087
ABA # 021000089
Vinod Sethi
    1,00,000       2,22,640  
Vinod Sethi
HSBC, Mumbai , Fort Branch
52/60 M.G Road, Mumbai 1
Swift Code HSBCINBB
Acct 030392344006
Thomas Stepany
    2,30,054       5,2,192  
Thomas Stepany
Bank Austria AG
Account no :52434 320 701
IBAN : ATO31200 0524 3432 0701
BIC : BKAUATWW
Astrid Stepany
    7,00,000       15,58,480  
Astrid Stepany
Dornbirner Sparkasse
Dornbirn / Austria
Account no : 1201 106 851
IBAN : AT 1920 602 0001201 106 851.
BIC : DOSPAT2D

 
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OTHER SHARES PLEDGED WITH IREDA

Shareholders
 
Number of
shares
 
Amount of
Consideration
 
Bank Account Details & Transfer
instructions
 
Enkem Engineers Private Limited
    15,47,445  
Re.1
    ------                      
Entec Environmental Technology Unweltechnok GMBH
    14,95,185  
Re.1
    -----------  
Total
    30,42,630  
Rs 2.0
       

 
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SCHEDULE IV

AUDITED CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 2009
 
ENCLOSED

 
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SCHEDULE IV WARRANTIES

Each of the Sellers subject to such exceptions as are specifically disclosed in
the Disclosure Schedule (each of which disclosures shall clearly reference the
appropriate paragraph and, if applicable, sub paragraph of this Schedule to
which it relates, and each of which disclosures shall be deemed to be
incorporated by reference into the representations and warranties made in this
Schedule, and elsewhere in this Agreement, to the extent such express reference
is made) hereby, jointly and severally, represents and warrants to the
Purchasers as follows.

1. 
CONSTITUTION

The Company is an entity duly organised, validly existing and under the laws of
the Republic of India and has full corporate power and lawful authority to own
and operate its assets, properties and business and to carry on its business as
now being conducted.

1.1 
Memorandum and Articles

The memorandum and articles of association of the Company as amended to date,
certified by the auditors of the Company or a practising Company Secretary and
provided to the Purchasers by the Sellers are complete and accurate. All
amendments to the memorandum and articles of association (if any) have been duly
and properly made and filed with Registrar of Companies and no amendments
thereto are pending.

1.2 
Register of Members

The register of members of the Company provided to the Purchasers by the Sellers
contains true and accurate records of the members from time to time of the
Company and the Company has not been subject to any application under the Act
for rectification of such register.

1.3 
Returns

All such resolutions, returns and other documents required by the Act to be
delivered to the Registrar of Companies have been duly delivered and are true
and accurate.

1.4 
Powers of Attorney

The Company has not executed any power of attorney or conferred on any person
other than its directors, officers and employees any authority to enter into any
transaction on behalf of or to bind the Company in any way.

1.5 
Share Capital

The authorised capital of the Company is Rs.900 lakhs  divided into 90  lakhs
equity Shares of Rs. 10 each. The Company's present issued, subscribed and
paid-up share capital is Rs. 732,05,640 divided into 73,20,564 equity Shares of
Rs. 10each.

The unpledged  Shares purchased by Purchaser shall be freely transferable by
Purchaser and are not subject to any Encumbrance.
 
26

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2. 
ACCOUNTS

2.1 
Accounts Warranty

The Accounts comply with the provisions of the Act as applicable and have been
prepared in accordance with the requirements of all relevant statutes and with
generally accepted accounting principles and practices and are true and accurate
in all respects so far as they are stated to be facts and not estimates and
accordingly give a true and fair view of all the assets and liabilities (whether
present or future, actual or contingent) and of the state of affairs, financial
position and results of the Company as at and up to the Accounts Date and,
without prejudice to the generality of the foregoing, the Accounts:

 
(a)
make full provision or reserve for depreciation, bad or doubtful debts and other
actual liabilities;

 
(b)
either make full provision or reserve for or make fair disclosure in notes of
all contingent, postponed or deferred liabilities;

(c) 
Do not overvalue assets or understate liabilities; and

 
(d)
have not (save as disclosed in the Accounts) been affected by any extraordinary,
exceptional or non-recurring item or by any other fact or circumstance rendering
the profits or losses for the relevant period unusually high or low.

Other than in the ordinary course of business and consistent with past practice,
the Company has not incurred any liability, indebtedness, obligation, expense,
claim, and guarantee, except for those which have been reflected in the
Financials.

2.2 
Accounting Policy

The Accounts have been prepared on a basis consistent with the basis upon which
all audited accounts of the Company have been prepared since the date of its
incorporation.

2.3 
Books of Account

The Company has properly kept and maintained all necessary books of account
(reflecting in accordance with generally accepted accounting principles and
practices all transactions effected by the Company or to which it is or has been
a party) minute books, records, register of members and other statutory books.
All such documents contain full and accurate records of all matters required to
be recorded therein and all deeds and documents (properly stamped where stamping
is necessary for enforcement thereof) belonging to the Company or which ought to
be in the possession of the Company.

 
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3. 
BUSINESS

3.1 
Business since the Accounts Date

Since the Accounts Date there has been no Material Adverse Effect in the
financial or trading position or prospects of the Company and the business of
the Company has been conducted on a normal basis.  The Company has not disposed
of any of its assets otherwise than in the normal course of business and in
consistence with its past practices or declared or paid any dividend on any of
its Shares or effected any distribution of Assets or made any loan or other
payment other than in the normal course of business.

3.2 
Acquisition and disposal of Assets

The Company has not since the Accounts Date acquired or agreed to acquire any
asset for a consideration which is higher than the market value at the time of
acquisition and has not disposed of or agreed to dispose of any asset for a
consideration which is lower than the market value or the value thereof as shown
in the books of the Company at the time of disposal.

3.3 
Charges and title to Assets

 
(a)
The Company has not created or agreed to create or suffered the creation of any
Encumbrance over any part of its undertaking or Assets except  a charge created
in favour of IREDA in respect of all its assets, movable and immovable for the
purpose of obtaining and having obtained a term loan from IREDA. The Company has
and shall at Closing continue to have a good and marketable title to the Assets,
to all other assets (tangible or intangible) used for the purpose of the
Company's business and to all assets acquired since the Accounts Date and prior
to Closing. The Purchaser on making the payment of a sum  of Rs. 70 Millions to
the Company shall be provided its assets free from encumbrances.  The Company
undertakes to make the payment to IREDA on the same day that it receives the
aforementioned sum of Rs. 70 Millions from the Purchaser herein.

 
(b)
The Company owns the Assets and all other assets (tangible or intangible) used
for the purpose of the Company's business at the date hereof and all assets
acquired since the Accounts Date and prior to Closing required for the proper
and efficient conduct of the business of the Company.

 
(c)
No person other than the Company has any right, title or interest (present or
future) in the Assets including any trade name, trade secret or secret process
of the Company.

 
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(d)
The Company has sufficient right, title and ownership of all its intangible
property, including all patents, trade marks, service marks, trade names,
copyrights, licences, domain names, information and proprietary rights,if any or
adequate licences, rights or purchase options with respect to the foregoing,
necessary for its business as now conducted and as proposed to be conducted, or
will be able to obtain on terms which will not materially and adversely affect
its business or operations in a material way, all necessary permits, licences
and other authorities with respect thereto subject to renewal , without any
conflict with or infringement of the rights of others, and the Company has not
received any notice of infringement upon or conflict with the asserted rights of
others. Assuming the due authorisation, execution and delivery of any such
agreements to which the Company is a party by the other parties to such
agreements, such agreements constitute legal, valid and binding obligations on
the respective parties thereto and are enforceable in accordance with their
respective terms, except as limited by bankruptcy and other laws of general
application affecting the rights and remedies of creditors generally.

 
 
(e)
The business of the Company has at all times been carried on free from
infringement of any trade marks, patents, registered designs, copyrights or any
other intellectual property rights.

 
(f)
The trade marks, service marks, registered designs and copyrights and other
intellectual property rights (and applications for registration of the same) if
any  beneficially owned by, and where registrable, are registered in the name of
the Company listed as the owner of such right or assets free from any
Encumbrance and each of them is valid and enforceable and there are no
registered user agreements, know-how agreements, licences or other rights
whatsoever granted in respect thereof and no event has occurred whereby any of
them have or might cease to be valid and subsisting and, save as so disclosed,
the Company does not own any other trade mark, patent, registered design or
copyright (and applications for registrations of the same) and is not a party to
any user, licence, know-how, information or assistance or development agreement
or under any liability to pay royalties in respect of any such matter.

3.5 
Onerous Obligations

The Company is not a party to any contract, transaction, arrangement or
liability which:

 
(a)
is of an unusual or abnormal nature, or outside the ordinary and proper course
of business;

 
(b)
is of a loss-making nature (that is, known to be likely to result in a loss to
the Company on completion of performance);

 
(c)
cannot readily be fulfilled or performed by the Company on time without undue,
or unusual, expenditure of money, effort or personnel;

 
(d)
restricts its freedom to engage in any activity or business or confines its
activity or business to a particular place; or

 
(e)
involves, or is likely to involve, obligations or liabilities which, by reason
of their nature or magnitude, ought reasonably to be made known to an intending
purchaser of the Shares.

 
29

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3.6 
Events of Default

 
(a)
No event has occurred or is subsisting which constitutes or results in or would
with the giving of notice and/or lapse of time constitute or result in a default
or the acceleration of any obligation under any agreement or arrangement to
which the Company is a party or by which it or any of its properties, revenues
or assets are bound.

 
(b)
The Company is not a party to any agreement or arrangement which is capable of
termination (without liability for compensation) by any other person on a change
in the management control or shareholding of the Company or by reason of the
sale of the Shares under this agreement.

 
(c)
To the best of the Sellers' knowledge and belief, after Closing (whether by
reason of an existing agreement or arrangement or otherwise or as a result of
the proposed acquisition of the Shares by the Purchaser):

 
(i)
no customer of the Company will cease, or be entitled to cease, to deal with the
Company or may substantially reduce its existing level of business with the
Company; and

 
(ii)
the Company will not lose the benefit of any right or privilege which it enjoys.

3.7 
Guarantees, etc.

The Company has not given any guarantee, indemnity, warranty or bond or incurred
any other similar obligation or created any security for or in respect of
liabilities, actual or contingent, of any other person other then those signed
with IREDA.

3.8 
Options over Shares etc.

Since the Accounts Date no share or loan capital has been created or issued or
agreed to be created or issued and there are not any options or other agreements
outstanding which call or give any person the right to call (whether or not
subject to conditions) for the issue of any share or loan capital of the Company
and  the Sellers are not under any obligation of any kind whatsoever whether
actual or contingent to sell, charge or otherwise dispose of any of the Shares
or any interest therein to any other person

3.9 
Litigation

Other than the disputes/litigations disclosed in the Disclosure Schedule, the
Company is not engaged in any litigation, arbitration, prosecution or other
legal proceedings (whether as plaintiff, defendant or third party) and there are
no such proceedings pending or threatened or any proceedings in respect of which
the Company is or might be liable to indemnify any other person concerned
therein, and there are no claims, facts or events which are likely to give rise
to any such proceedings and the Company is not engaged in and has not in the
last [six (6)] years been engaged in and no facts or events exist or have
occurred which are likely to cause the Company to be involved in proceedings or
enquiries before any governmental or municipal board of enquiry or commission or
any other administrative body (whether judicial quasi-judicial or otherwise) in
which any unfavourable judgment or decision would or might adversely affect the
business of the Company or the value of any of its assets.
 
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3.10 
Business Name

The Company does not carry on any business under any name other than its
corporate name.

3.11 
Intra Vires

The Company has the power to carry on its business as now conducted and the
business of the Company has at all times been carried on intra vires.

3.12 
Insurance

  
 
(a)
The Company has all insurance policies in effect in relation to its business and
assets and all such policies are in full force and effect and not voidable.
However With respective to  insurances policies that have lapsed the same shall
be renewed by the seller within period of 30 days from closing date, the cost of
which shall be borne by the purchaser.

 
(b)
The policies of insurance which are maintained by the Company afford the Company
adequate cover against such risks as companies carrying on the same type of
business as the Company commonly cover by insurance and in particular insure the
assets of the Company against fire in their full replacement value.

 
(c)
The Company is now, and has at all material times been, adequately covered
against accident, damage, injury, third party loss (including product
liability), loss of profits and other risks normally covered by insurance and
has at all times effected such insurances as are required by law.

 
(d)
There are no circumstances which might lead to any liability under such
insurance being avoided by the insurers or the premiums being increased and
there is neither is any claim outstanding under any such policy nor are the
Sellers aware of any circumstances likely to give rise to a claim.

3.13 
Compliance with Other Legislation

Neither the Company, nor any of its officers, agents or employees (during the
course of their duties in relation to the Company) have committed, or omitted to
do, any act or thing the commission or omission of which is, or could be, in
contravention of any Act, order, regulation or the like in the Republic of India
or elsewhere which is punishable by fine or other penalty or which may impose
any other liabilities on the Company or affect the validity or enforceability of
any agreement or arrangement to which it is a party.

3.14 
Title Retention

The Company has not acquired nor agreed to acquire any Asset on terms that the
property therein does not pass until full payment is made.
 
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3.15 
Possession of books, records etc.

The Company has in its possession all books, records, Accounts and other
documents relating to the Company which it may be obliged to produce under any
contract or under any statutory provision now in force to any party. Control of
such books, records, Accounts and other documents will remain in the hands of
the Company following Closing.

 
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3.16 
Insolvency

 
(a)
The Company is not aware of any order having been made, petition presented or
meeting convened for the purpose of considering a resolution for the winding up
of the Company or the appointment of any provisional liquidator. The Company is
not aware of any petition having been presented for an administration order to
be made in relation to the Company, and no receiver (including any
administrative receiver) has been appointed in respect of the whole or any part
of the property, assets and/or undertaking of the Company.

 
(b)
No composition in satisfaction of the debts of the Company, or scheme of
arrangement of its affairs, or compromise or arrangement between it and its
creditors and/or members or any class of its creditors and/or members, has been
proposed, sanctioned or approved.

 
(c)
No distress, charging order, execution or other process has been levied or
applied for in respect of the whole or any part of any of the property, assets
and/or undertaking of the Company.

 
(d)
All charges in favour of the Company required to be registered in accordance
with the provisions of Indian law or applicable foreign law have been so
registered or complied with.

 
(e)
The Company has defaulted in respect of payment of interest and repayment of
principal to IREDA and necessary applications for a One Time Settlement has been
made.  

 
4. 
EMPLOYEES

4.1
There are no:

 
(a)
trade unions of the workers of the Company.  The Company is not subject to or
bound by any collective bargaining or labour union agreement applicable to any
person employed by the Company and no collective bargaining or labour union
agreement is currently being negotiated by the Company;

 
 
(b)
subsisting labour or industrial disputes between the Company and any of its
employees or workers nor has any notice in connection with any labour or
industrial dispute been served upon the Company; and

(c) 
circumstances likely to give rise to any such dispute.

4.2
There is no labour strike, dispute, slowdown or stoppage actually pending or
threatened against or involving the Company.  The Company has not experienced
any material labour difficulty, work stoppage, go slow, strikes or labour unrest
during the last [three (3) years].

4.3
The Company has in relation to each of its employees (and so far as relevant to
each of its former employees) complied in all respects with all statutes,
regulations, codes of conduct, collective agreements, terms and conditions of
employment, orders and awards relevant to their conditions of service (including
employee benefit schemes) and/or to the relations between it and its employees
(or former employees, as the case may be).

 
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4.4
No unfair labour practice complaint is pending against the Company.

4.5
All statutory dues of the employees (including provident fund and ESI dues)other
than income tax  have been duly satisfied by the Company.  The Company does not
have any charges or other claims of employment discrimination pending or
threatened against it.

4.6
No investigation relating to the wages of the employees and working hours is
being carried on by the government authority against the Company.

 
4.7
There are no occupational health and safety claims against the Company.

 
5. 
ACCURACY OF INFORMATION

All information contained in this Agreement and all other information given to
the Purchasers, its solicitors, accountants, agents or other representatives by
or on behalf of the Sellers concerning or which might concern the Company or its
business, assets or liabilities was when given and is now true and correct in
all respects and no matter or fact has not been disclosed the omission of which
renders any such information untrue or misleading and all facts relating to the
Company which could affect the value of the property, business and undertaking
of the Company or the Shares have been disclosed.

6. 
TAXATION

6.1 
Payment of Taxes

The Company has paid or caused to be paid, for all taxable years or periods that
end on or receipt of the rupees 5.0 million , all Taxes, and Company shall pay
or cause to be paid any Taxes when due and required to be paid by the Company,
other than those Taxes being contested in good faith.

6.2 
Tax Returns

The Company has timely filed or caused to be timely filed with the appropriate
taxing authorities all  returns that are required to be filed by, or with
respect to, the Company on or prior to the Closing Date. The Returns have
accurately reflected and will accurately reflect all liability for Taxes of the
Company for the periods covered thereby.

6.3 
Other Tax Matters

6.3.1
Except as set forth in this Clause 6.3.1, the Company has not been the subject
of an audit or other examination of Taxes by the tax authorities (and no such
audit is pending or contemplated) nor has the Company received any notices from
any taxing authority relating to any issue which could affect the Tax liability
of the Company.

6.3.2
Except as set forth in this Clause 6.3.2, neither Seller nor the Company has, as
of the Closing Date:

 
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(i)
entered into an agreement or waiver or requested to enter into an agreement or
waiver extending any statute of limitations relating to the payment or
collection of Taxes of the Company; or

 
 
(ii)
is presently contesting the Tax liability of the Company before any court,
tribunal or agency.

 
6.3.3
All Taxes which the Company is or was required by law to withhold or collect in
connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder or other third party have been duly withheld or collected,
and have been timely paid over to the proper authorities to the extent due and
payable.

 
6.3.4
There is no Tax sharing, allocation, indemnification or similar agreement in
effect as between the Company or any predecessor or Affiliate thereof and any
other party (including any Seller and any predecessors or Affiliates thereof)
under which the Company could be liable for any Taxes or other claims of any
party.

 
6.3.5
The Company has not applied for, or been granted, or agreed to any accounting
method change for which it will be required to take into account any adjustment
the Tax laws of any nation, state, province, prefect or locality.

 
6.3.6
There are no transactions or facts existing with respect to the Company which by
reason of the consummation of the transaction contemplated by this Agreement
will result in the Company recognizing income.

 
7. 
LEASED IMMOVABLE PROPERTY

7.1
The Company has not entered into a leasing arrangement in respect of any
immovable property.

  
8.
IMMOVABLE PROPERTY

8.1
Annexure 1 contains an accurate and complete list of all immovable property
owned in whole or in part by the Company and includes the name of the record
title holder thereof and a list of all debts secured by a mortgage/charge
thereon.

8.2
The Company has good and marketable title to all the immovable property owned by
it, free and clear of all Encumbrances (apart from pledge with IREDA)and the
documents of title are duly registered with the appropriate authorities.

8.3
All of the buildings, structures and appurtenances situated on the immovable
property owned in whole or in part by the Company are in good
operating  condition and in a state of good maintenance (repair, ordinary wear
and tear excepted), are adequate and suitable for the purposes for which they
are presently being used and, with respect to each, the Company has adequate
rights of ingress and egress for operation of the business of the Company in the
ordinary course the company has already during due diligence indicated the list
of repairs to be carried out on best effort basis.

 
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8.4
None of such buildings, structures or appurtenances (or any equipment therein),
nor the operation or maintenance thereof, violates any restrictive covenant or
any provision of any law or order, or encroaches on any property owned by
others.  No condemnation proceeding is pending or threatened which would
preclude or impair the use of any such property by the Company for the purposes
for which it is currently used.

 
9. 
ENVIRONMENTAL LAWS AND REGULATIONS

9.1
The Company is in compliance with all applicable environmental laws, and has
obtained, and is in compliance with, all permits required under applicable
environmental laws. the consent order have to be renewed

9.2
There are no claims, proceedings, investigations or actions by any government
authority or other person or entity pending, or to the knowledge of Sellers
threatened, against the Company under any environmental law.

9.3
There are no facts, circumstances or conditions relating to the past or present
business or operations of the Company (including the disposal of any wastes,
hazardous substances or other materials), or to any past or present Assets, that
could reasonably be expected to give rise to any claim, proceeding or action, or
to any liability, under any environmental law.

10. 
PERMITS

10.1
The Company has obtained and possesses all permits, licenses, permissions,
consents and authorizations required for the carrying on of its business and has
made all registrations or filings with or notices to any government regulatory
authority necessary for the lawful conduct of the Company's businesses as
presently conducted, or necessary for the lawful ownership of the Assets or the
operation of the Company's businesses as presently conducted.  The purchaser has
to renew all such permits after closing dates

10.2
Each such permit, licenses, permissions, consents and authorizations can be
renewed or transferred in the ordinary course of business by the Company.

10.3
No proceeding to modify, suspend, revoke, withdraw, terminate or otherwise limit
any       such permit, license, permission, consent and authorization is pending
or threatened and there is no valid basis for such proceeding, including the
transactions contemplated hereby.

10.4
No administrative or governmental action or proceeding has been taken or
threatened, in connection with the expiration, continuance or renewal of any
such permit and there is no valid basis for any such proceeding.

10.5
Annexure 3 contains status of all permits, licenses, etc. obtained by the
Company. The Sellers have delivered or made available to each Purchaser for
inspection a true and correct copy of each permit obtained or possessed by the
Company.

 
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11 
AFFILIATE TRANSACTIONS

11.1
Except as set forth in Annexure 4, there are no contracts, liabilities or
obligations between the Company, on one hand, and on the other hand with either:

 
 
(i)
the Sellers

 
(ii) 
any other Affiliate of the Company.

 
11.2
Neither the  seller, any affiliate of the  seller nor any officer  or director
of the Company possesses, directly or indirectly any financial interest in
India  or is a director, officers or employee of any person who is a client ,
customer , lessor , lessee, or competitor or potential competitor of the Company
in India . Ownership  of 1 % or less  of any class of securities of a listed
company shall not be a deemed to be a financial interest for purpose of this
paragraph

 
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SCHEDULE V

SELLERS BANK ACCOUNT DETAILS

1.IOB Nehru Park Branch  Chennai – 600 084
 Account No : 1969

2. IOB Namakkal
Account No : 8370

 
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SCHEDULE VI

DISCLOSURE SCHEDULE

1.Legal Notice from M/s C.Doctor & Co for due  payments of Rs.1,01,820

2.With drawal  of  Mr.K. Allaudin  As nominee Director of IREDA Will take place
only after Date of Closing by IREDA

3. The Seller is already in the Business of Providing Technology for Power
Generation Through High Rate Anaerobic Digesters

 
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ANNEXURE 1
 
LIST OF ALL LEASES/SUBLEASES OF IMMOVABLE PROPERTY

NIL
 
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ANNEXURE 2
 
LIST OF ALL  MOVABLE AND IMMOVABLE PROPERTY OWNED IN WHOLE
OR IN PART BY THE COMPANY

S.No
 
Description of equipment / Machine
1
 
Weigh Bridge
2
 
Agitator 2 Nos
3
 
Feed pump 2 nos
4
 
Digester Mixing Equipment 2 nos
5
 
Biological desulphuration unit 2 nos
6
 
Flare 1 no
7
 
Sludge Pumps  2 nos
8
 
Conveyor
9
 
Aeration System 2 nos
10
 
Secondary Clarifier 1 no
11
 
Gas engine- internals complete
12
 
Piping one lot
13
 
Electrical and Instrumentation one lot
14
 
Gas Engine 1.048 MW and Gas Engine 0.511MW
15
 
Entec Gas Balloons
16
 
Screw Press 3 nos
17
 
Gas engine feed Blowers 2 nos
18
 
Heat Exchanger
19
 
Start up blower 1 no
20
 
Computers
21
 
CWIP  Grid
22
 
Fax/ Tel instruments
23
 
Furniture
24
  
Intercom

S.No
 
Description of Land
 
Area – in acres
1
 
Survey No 93/1 – Uduppam Village
 
4.30
2
 
Survey No 93/2 – Uduppam Village
 
3.01
3
 
Survey No 93/ 3 – Uduppam Village
 
2.22
4
  
Survey No 93/4- Uduppam Village
  
2.64

 
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S.No
 
Civil Works/ Building
1
 
Weighing Station
2
 
Feed Preparation tank 2 nos
3
 
Anaerobic Digester I
4
 
Anaerobic Digester II
5
 
Residue Storage Tank
6
 
Presswater Storage tank
7
 
Drying yard
8
 
Aeration Tank
9
 
Secondary Clarifier
10
 
Engine Room
11
 
Electrical Room
12
 
Dewatering Station
13
 
Foundation  for Gasholder
14
 
Blower Room
15
 
Building
16
 
Transformer Yard
17
  
Lab Building

 
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ANNEXURE 3

LIST OF ALL PERMITS, LICENSES PERMISSIONS, CONSENTS AND
AUTHORISATIONS

1.   Tamil Nadu  Pollution Control Board Consultant under Water and Air Act to
be renewed
2.   Power Purchase Agreement with TNEB
3.   CIEG Approval Renewed annually
4.   Factory Inspectorates approval to be obtained and renewed

 
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ANNEXURE 4

LIST OF AFFILIATE TRANSACTIONS

NIL

 
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