Document:

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                                                                   Exhibit 10.67

[CONFIDENTIAL TREATMENT REDACTED]

                             SHAREHOLDERS AGREEMENT

                                      DATED

                                   2 MAY, 2000

                                     BETWEEN

                           ESSAR TELEHOLDINGS LIMITED

                          CGP INDIA INVESTMENTS LIMITED

                                    MOBILVEST

                              CCII (MAURITIUS) INC

                                PRIME METALS LTD

                           EURO PACIFIC SECURITIES LTD

                   JAYKAY FINHOLDINGS (INDIA) PRIVATE LIMITED

                                       AND

                            STERLING CELLULAR LIMITED

                                   ----------
                                  in respect of

                            STERLING CELLULAR LIMITED
                                   ----------

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                                    CONTENTS

1.   DEFINITIONS AND INTERPRETATION............................................5

     1.1     DEFINITIONS.......................................................5
     1.2     INTERPRETATION....................................................8

2.   EFFECTIVE DATE............................................................9

3.   SHAREHOLDING PATTERN......................................................9

4.   MEETINGS OF SHAREHOLDERS..................................................9

     4.1     GENERAL MEETINGS..................................................9
     4.2     QUORUM...........................................................10

5.   DIRECTORS AND OFFICERS...................................................10

     5.1     DIRECTORS OF THE COMPANY.........................................10
     5.2     NOMINATED DIRECTORS TO BE ELECTED................................10
     5.3     ALTERNATE DIRECTOR...............................................11
     5.4     DIRECTORS FEES...................................................11
     5.5     PLACE AND CALLING OF BOARD MEETINGS..............................11
     5.6     RESOLUTION BY CIRCULATION........................................12
     5.7     CHAIRMAN AND VICE CHAIRMAN.......................................12
     5.8     EXECUTIVE COMMITTEE..............................................12
     5.9     QUORUM FOR DIRECTORS MEETINGS....................................13
     5.10    ATTENDANCE BY CONSULTANTS, ADVISERS AND NON VOTING ATTENDEES.....13
     5.11    DECISIONS BY MAJORITY VOTE.......................................13
     5.12    SECRETARY........................................................13
     5.13    AUDITORS.........................................................13
     5.14    ACCOUNTING YEAR..................................................13

6.   MANAGEMENT...............................................................14

     6.1     BUSINESS TO BE MANAGED BY BOARD..................................14
     6.2     MANAGING DIRECTOR................................................14
     6.3     PERFORMANCE OF MANAGING DIRECTOR.................................14
     6.4     MAJORITY VOTES REQUIRED FOR CERTAIN BOARD MEETING................14
     6.5     RESERVED DECISIONS...............................................15

7.   BUSINESS PLAN & BUDGET...................................................16

     7.1     BUSINESS PLAN & BUDGET...........................................16
     7.2     BUDGET DETAILS...................................................16

8.   INITIAL PUBLIC OFFERING..................................................17

9.   FUNDING AND CAPITAL......................................................17

     9.1     FUNDING OF THE COMPANY...........................................17
     9.2     CAPITAL CONTRIBUTION.............................................17
     9.3     DEBT FINANCING...................................................18
     9.4     CREDIT SUPPORT...................................................18

10.  TRANSFER OF SHARES.......................................................19

     10.1    RESTRICTIONS ON TRANSFERS OF OWNERSHIP...........................19
     10.2    NO MORTGAGE OR PLEDGE OF SHARES..................................19
     10.3    PERMITTED  TRANSFERS.............................................20
     10.4    DEFAULT..........................................................20

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     10.5    SALE OF SHARES ON DEFAULT........................................21
     10.6    REPAYMENT OF SHAREHOLDER LOANS AND GUARANTEES....................22
     10.7    TITLE AND COMPLETION OF SHARE TRANSFERS..........................23
     10.8    RIGHTS OF FIRST REFUSAL..........................................23
     10.9    TAG ALONG........................................................30
     10.10   SECTORAL CAPS....................................................31
     10.11   DEED OF ADHERENCE................................................32

11.  FURTHER OBLIGATIONS OF THE PARTIES.......................................32

     11.1    FURTHER ASSURANCE................................................32
     11.2    DIRECTORS TO VOTE TO IMPLEMENT THIS AGREEMENT....................32
     11.3    ACCOUNTING AND REPORTING.........................................32
     11.4    EXCHANGE OF INFORMATION..........................................33
     11.5    FAIR DEALINGS....................................................33

12.  MAINTENANCE OF LICENCES, GOVERNMENT APPROVALS............................33

13.  TERM, TERMINATION AND DISPUTES...........................................34

     13.1    TERM.............................................................34
     13.2    RIGHTS OF PARTIES ON WINDING UP..................................34
     13.3    AGREEMENT TERMINATES ON WINDING UP...............................34

14.  ARBITRATION AND CONSULTATION.............................................34

     14.1    CONSULTATION.....................................................34
     14.2    ARBITRATION......................................................35

15.  CONFIDENTIALITY..........................................................36

     15.1    AGREEMENT CONFIDENTIAL...........................................36
     15.2    INJUNCTIVE RELIEF................................................36
     15.3    SURVIVAL.........................................................36

16.  AGREEMENT................................................................36

     16.1    AGREEMENT TO PREVAIL.............................................36
     16.2    AMENDMENT OF MEMORANDUM AND ARTICLES.............................37

17.  NOTICES..................................................................37

18.  MISCELLANEOUS............................................................38

     18.1    LEGAL AND OTHER COSTS............................................38
     18.2    COMPLETE AGREEMENT...............................................38
     18.3    UNENFORCEABLE PROVISIONS.........................................39
     18.4    NO PARTNERSHIP...................................................39
     18.5    AMENDMENT IN WRITING:............................................39
     18.6    NO ASSIGNMENT....................................................39
     18.7    NO WAIVER........................................................39
     18.8    COUNTERPARTS.....................................................39
     18.9    GOVERNING LAW....................................................40

SCHEDULE A - FAIR VALUE.......................................................42

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                             SHAREHOLDERS AGREEMENT

THIS SHAREHOLDERS AGREEMENT (this "Agreement") is made the __ day of May, 2000:

BETWEEN:

A.      Essar Teleholdings Limited (earlier Sterling Computers Limited), a
        company incorporated in India whose registered office is at 19,
        Cathedral Garden Road, Nungambakkam, Chennai 600 034, India ("Essar");

B.      C.G.P. India Investments Limited, a company incorporated in Mauritius
        whose registered office is at 4th floor Les Cascades Building, Edith
        Cavell Street, Port Louis, , Mauritius ("CGP"); and

C.      Mobilvest, a company incorporated in Mauritius whose registered office
        is at 4th floor Les Cascades Building, Edith Cavell Street, Port Louis,
        , Mauritius

D.      CCII Mauritius Inc, a company incorporated in Mauritius whose registered
        office is at 4th floor Les Cascades Building, Edith Cavell Street, Port
        Louis, , Mauritius

E.      Prime Metals Limited, a company incorporated in Mauritius whose
        registered office is at 4th floor Les Cascades Building, Edith Cavell
        Street, Port Louis, , Mauritius

F.      Euro Pacific Securities Limited, a company incorporated in Mauritius
        whose registered office is at 4th floor Les Cascades Building, Edith
        Cavell Street, Port Louis, , Mauritius

G.      Jaykay Finholdings (India) Private Limited, a company incorporated under
        the Companies Act, 1956 whose registered office is at Bakhtawar 1st
        Floor 229 Nariman Point, Mumbai - 400 021 , India ("JKF").

H.      Sterling Cellular Limited, a company incorporated in India whose
        registered office is at C-48, Okhla Industrial Area, Phase II, New
        Delhi, 110020_, India holding a license to provide cellular services in
        New Delhi (the "Company");

(Each of the aforesaid shall be referred to as "Party" and collectively as
"Parties")

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WHEREAS:

A.      The Company is a public company limited by shares, which holds the
        license to provide cellular mobile services in the metro city of New
        Delhi by virtue of the license agreement no. 842-22/93-TM dated
        November 30, 1994.

B.      The present shareholding of the Company is as follows:

Essar:                                  84,918,267 shares  representing  49.03%
                                        of the share capital;

Mobilvest:                              56,298,182 shares  representing  32.50%
                                        of the share capital;

CCII (Mauritius) Inc.:                  15,000,000  shares  representing  8.66%
                                        of the share capital;

Prime Metals Ltd.:                      9,000,000  shares  representing  5.20%
                                        of the  share capital;

Euro Pacific Securities Ltd.:           4,500,000  shares  representing  2.6%
                                        of the share capital;

JKF:                                    3,480,020  shares  representing  2.01%
                                        of the  share capital.

C.      Essar and JKF, being companies incorporated in India collectively hold
        51.04% of the share capital of the Company, and the balance 48.96% of
        the share capital of the Company is held by CGP indirectly through the
        Mauritius Companies.

D.      This Agreement sets forth the arrangement between the parties for the
        shareholding and management of the Company on an ongoing basis.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, receipt and
sufficiency of which is hereby acknowledged, the Parties hereto hereby agree as
follows:

1.      DEFINITIONS AND INTERPRETATION

1.1     DEFINITIONS

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        In this Agreement unless the context otherwise requires or expressly
        provides, the following words shall have the following meanings
        respectively:

        "Accounting Year" shall have the meaning set forth in Clause 5.14
        hereof;

        "Act" or "Companies Act" shall mean the Companies Act, 1956 and/or any
        statutory modifications amendments or re-enactments thereto from time to
        time.

        "Affiliate" means with respect to any Party, any other Person directly
        or indirectly controlling, controlled by or under common control with
        such Party. For purposes of this definition, the term "control"
        (including with correlative meaning, the terms "controlled by" and
        "under common control" with) as applied to any Person, means the
        possession, directly or indirectly, of the power to direct or cause the
        direction of the management of that Person whether through ownership of
        voting securities or otherwise;

        "AGM" means an annual general meeting of the Company;

        "Alternate Directors" means Directors appointed pursuant to Clause 5.3;

        "Articles" means the articles of association of the Company for the time
        being;

        "Board" means the board of directors of the Company;

        "Business Day" means a day on which scheduled banks are open for
        business in India;

        "Chief Executive Officer" means the chief executive officer of the
        Company appointed pursuant to Clause 6.2

        "CGP Director" means any Director nominated by CGP in accordance with
        Clause 5.1(a);

        "CGP Shares" means the Shares in the Company held by the Mauritius
        Companies;

        "Delhi Circle" means the telecommunications circle for the metropolitan
        city of New Delhi including Gurgaon, Noida, Ghaziabad and Faridabad for
        which the Company has been granted licence to provide cellular mobile
        telephone services;

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        "Directors" means the directors of the Company from time to time;

        "Effective Date" shall have the meaning set forth in Clause 2 hereof;

        "EGM" means an extraordinary general meeting of the Company;

        "Essar Directors" means those Directors nominated by Essar in accordance
        with Clause 5.1(a);

        "Essar Shares" means the Shares held by Essar in the Company;

        "Fair Value" has the meaning set out in Schedule A hereto;

        "General Meeting" means an AGM or an EGM;

        "Guarantee Call Option" shall have the meaning set forth in Clause 9.4
        hereof;

        "HMTL" means Hutchison Max Telecom Limited, a company incorporated under
        the Companies Act and having its registered office at first floor, DCW
        Center, Stanrose House, New Prabhadevi Road, Mumbai, 400 025;

        "High Value Contracts" mean contracts with a value greater than US $ 5
        million entered into or to be entered into by the Company;

        "IPO" means an initial public offering made in accordance with Clause 8;

        "JKF Director" means the Director nominated by JKF in accordance with
        Clause 5.1(a);

        "JKF Shares" means the Shares held by JKF in the Company;

        "Mauritius Companies" means Mobilvest, CCII (Mauritius) Inc, Prime
        Metals Ltd. and Euro Pacific Securities Ltd.

        "Memorandum" means the memorandum of association of the Company for the
        time being;

        "Mumbai Circle" means the telecommunications circle for the metropolitan
        city of Mumbai, Navi Mumbai, Thane and the Kalyan Telephone district,
        for which HMTL has been granted licence to provide cellular mobile
        telephone services;

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        "Original Director" shall have the meaning set forth in Clause 5.3
        hereof;

        "Reserved Decisions" shall have the meaning set forth in Clause 6.5
        hereof;

        "ROC" means the Registrar of Companies, Delhi and Haryana;

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

        "Shareholder" means any of Essar, the Mauritius Companies JKF or any
        direct holder of any issued Shares in the Company; and

        "Shares" and "Shares in the Company" mean all classes of shares in the
        capital of the Company or any class thereof, as the case may be and
        includes any and all of the rights conferred on a person by the
        ownership of such shares.

1.2     INTERPRETATION

        (a)     Heading and bold typeface are only for convenience and shall be
                ignored for the purpose of interpretation;

        (b)     Unless the context of this Agreement otherwise requires;

                (i)     words using the singular number also include the plural
                        or singular number, respectively;

                (ii)    the terms "hereof, "hereto" and derivative or similar
                        words refer to this entire Agreement or specified
                        Clauses of this Agreement, as the case may be;

                (iii)   the term "Clause" refers to the specified clause of this
                        Agreement;

                (iv)    reference to any legislation or law or to any provision
                        thereof shall include references to any such law as it
                        may, after the date hereof, from time to time, be
                        amended, supplemented or re-enacted, and any reference
                        to statutory provision shall include any subordinate
                        legislation made from time to time under that provision;

                (v)     reference to the word "include" shall be construed
                        without limitation; and

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                (vi)    The Schedules and Exhibits hereto shall constitute an
                        integral part of this Agreement.

2.      EFFECTIVE DATE

        2.1     This Agreement shall take effect on the date (the "Effective
                Date") of completion of the sale and purchase of 3,480,020
                shares representing 2.01% of the total issued and paid-up share
                capital of the Company from Essar to JKF.

        2.2     On the Effective Date, the Parties shall ensure that the
                Articles, in the form and manner attached hereto as Schedule 2
                are adopted at a General Meeting, and the resolution adopting
                the same shall be filed with the ROC. The Company shall take all
                steps including issue of notices to the appropriate shareholders
                of the Company, to ensure that an EGM is convened on the
                Effective Date and the requisite resolutions are passed.

3.      SHAREHOLDING PATTERN

        Subject as elsewhere provided in this Agreement, the issued and paid-up
        share capital of the Company shall be held, directly or indirectly in
        the following manner:

        Essar:            49.03%
        CGP               48.96%
        JKF:               2.01%

4.      MEETINGS OF SHAREHOLDERS

4.1     GENERAL MEETINGS

        An AGM of the Shareholders shall be held each calendar year within six
        (6) months following the end of the previous Accounting Year of the
        Company. The Board of Directors shall provide the Company's previous
        Accounting Year's audited financial statements to all Shareholders at
        least one (1) month before the AGM is held to approve and adopt the
        audited financial statements. All other Shareholders' meetings, other
        than the AGM shall be EGMs.

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4.2     QUORUM

        The quorum for an AGM or EGM with respect to any agenda shall be at
        least two (2) Shareholders present in person or through duly authorised
        representative holding more than sixty percent (60%) of the total issued
        and paid-up share capital of the Company. If the proposed AGM or EGM
        with respect to any quorum is not validly constituted as required by
        this Clause 4.2, or if such a quorum is not maintained throughout such
        meeting, then the meeting shall be adjourned for a period of 7 days,
        with notice of such adjournment to be provided to the Shareholders
        within three (3) days of such adjournment. At the meeting held pursuant
        to the adjournment, the shareholders present shall constitute the quorum
        for the meeting. A quorum must be present at the beginning and
        throughout the meeting.

5.      DIRECTORS AND OFFICERS

5.1     DIRECTORS OF THE COMPANY

(a)     Subject to the provisions of the Act, the Board shall comprise seven
        Directors. Three Directors (the "CGP Directors") shall be nominated by
        CGP, three Directors (the "Essar Directors") shall be nominated by Essar
        and one Director (the "JKF Director") shall be nominated by JKF. The
        Shareholder or CGP nominating a Director may by notice in writing to the
        Company require the removal of such Director and nominate another person
        as a Director to act in his/her place.

(b)     If the holding, directly or indirectly, of CGP or Essar falls below 10%
        of the issued and paid-up equity share capital of the Company, then they
        shall have the right of nomination under this Clause 5.1, in respect of
        one Director only..

(c)     Three Directors shall be non-retiring Directors, one each of whom shall
        be nominated by Essar, CGP and JKF.

5.2     NOMINATED DIRECTORS TO BE ELECTED

        Subject to the provisions of the Act, each of the Parties undertake to
        procure that the persons nominated in accordance with Clause 5.1 shall
        be elected or re-elected as Directors or appointed to the Board as the
        case may be. Furthermore, upon receipt of a written request from CGP,
        Essar or JKF (as the case may be) to remove or not to re-elect any
        Director nominated by them, the Parties shall procure the removal or
        shall fail to re-elect such Director as so requested.

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5.3     ALTERNATE DIRECTOR

        In the event that a Director (an "Original Director") is away for a
        continuos period of not less than three (3) months from the state in
        which the meetings of the Board of Directors are ordinarily held, the
        Board shall appoint another Director (an "Alternate Director") for and
        in place of the Original Director. The Board shall appoint only such
        Alternate Director nominated by the Shareholder or CGP that nominated
        the Original Director. The Alternate Director shall vacate office if and
        when the Original Director returns to the state in which meetings of the
        Board are ordinarily held. Upon the appointment of the Alternate
        Director, the Company shall ensure compliance with the provisions of the
        Act, including by filing necessary forms with the Registrar of
        Companies. The Alternate Director shall be entitled to receive notice of
        all meetings and to attend and vote at such meetings in place of the
        Original Director and generally to perform all functions of the Original
        Director in his absence.

5.4     DIRECTORS FEES

        Subject to the provisions of the Act, the Directors shall not be paid
        any fees for acting in their capacity as Directors. All Directors may,
        subject to applicable restrictions if any under law, be remunerated
        separately for the performance of special or executive duties approved
        from time to time by the Board. All Directors will be entitled to be
        paid or reimbursed their reasonable travelling, accommodation and
        subsistence expenses incurred in attending meetings (Board/ general/ any
        other committee meeting) and/or in the discharge of their duties as
        Directors.

5.5     PLACE AND CALLING OF BOARD MEETINGS

        Board meetings shall be held at such places, in or outside of India as
        the Board may determine and failing any such determination at the
        Company's registered office in Delhi. Board meetings shall be held at
        least once every three months and at least four times in each year. Any
        Director may call a meeting of the Board. Unless the requirement of
        notice is waived by all Directors, fourteen days written notice (or such
        shorter period as all the Directors may agree) of Board meetings shall
        be given to all Directors and their Alternate Directors. Each notice of
        a meeting of the Board shall contain inter alia, an agenda specifying in
        reasonable detail the matters to be discussed at the relevant meeting
        and shall be accompanied by all necessary written information. Where a
        Board meeting is adjourned, it shall be reconvened on a day seven
        Business Days from the original date at the same place and time unless
        the Board decides otherwise. Notices and

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        minutes of Board meetings shall be given to each Director at their last
        known address, whether resident in India or abroad.

5.6     RESOLUTION BY CIRCULATION

        Subject to the provisions of the Act, resolutions of the Board may be
        passed by circulation, if the resolution has been circulated in draft,
        together with necessary papers, if any, to all the Directors, then in
        India or outside India, and has been signed by a majority of the
        Directors, provided that in respect of matters contained in Clause 6.4
        hereof, the resolution should be signed by at least one Essar Director
        and one CGP Director. Such resolutions may be signed by the Directors as
        single documents or in counterparts.

5.7     CHAIRMAN AND VICE CHAIRMAN

        The Chairman of the Board shall be nominated by CGP from amongst the
        Directors of the Company nominated by CGP. The Vice-Chairman of the
        Board shall be nominated by Essar from amongst the Directors of the
        Company nominated by Essar. Each of the Shareholders shall ensure
        (including by exercise of their respective voting rights) the
        appointment of the CGP nominee as the Chairman and the Essar nominee as
        the Vice-Chairman. The Chairman of the Board shall preside as chairman
        of each meeting of the Board at which he is present and in his absence
        the Vice Chairman shall preside as Chairman of the meeting. In the
        absence of the Chairman and the Vice-Chairman, the Directors attending
        the meeting shall elect a Director from amongst themselves to chair the
        meeting. In the event of any equality of votes, the chairman of the
        meeting shall not have a second or casting vote. Neither Essar or CGP
        shall have the right to nominate the Chairman or Vice-Chairman, as the
        case may be, if it ceases to have the right to nominate more than one
        Director pursuant to Clause 5.1(b).

5.8     EXECUTIVE COMMITTEE

        The Board shall have the power to appoint an Executive Committee and
        delegate the powers to such Committee for the day to day management of
        the Company, provided that no delegation shall be made to the Executive
        Committee in respect of the matters contained in Clause 6.4 hereof. The
        exercise of powers of management by the Committee shall be subject to
        the overall supervision of the Board.

        The Executive Committee shall consist of the Chief Executive Officer
        ("CEO"), Chief Financial Officer ("CFO"), Chief Commercial Officer

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        ("CCO"), Chief Marketing Officer ("CMO"), and Chief Technical Officer
        ("CTO"), each of whom shall be nominated by CGP.

5.9     QUORUM FOR DIRECTORS MEETINGS

        The quorum for meetings of the Board shall be 4 (Four) Directors
        consisting of at least one Director each nominated by Essar, CGP and
        JKF, excluding interested Directors. If a quorum is not present, the
        meeting shall be adjourned for seven Business Days at the same place and
        time and if no quorum is then present the Directors present shall form a
        quorum.

5.10    ATTENDANCE BY CONSULTANTS, ADVISERS AND NON VOTING ATTENDEES

        If the Board so authorises or requests, auditors, consultants, and
        advisers of the Company (in addition to those who also act for any one
        or more of the Directors in a personal capacity) and employees of the
        Company shall be permitted to attend and speak at meetings of the Board,
        but not to vote.

5.11    DECISIONS BY MAJORITY VOTE

        Subject to Clause 6.4 hereof and except as otherwise provided in the
        Act, all decisions of the Board shall be taken by a majority of the
        Directors present and voting a meeting of the Board, or as the case may
        be, the directors voting by way of a circular resolution.

5.12    SECRETARY

        The secretary of the Company shall be such person as shall from time to
        time be determined by the Board.

5.13    AUDITORS

        The auditors of the Company shall be PriceWaterhouseCoopers. or such
        international and reputable firm of accountants as shall from time to
        time be recommended by the Board.

5.14    ACCOUNTING YEAR

        The accounting year of the Company (the "Accounting Year") shall end on
        31st March each year or such other date as the Parties shall agree and
        the Company in general meeting shall resolve.

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6.      MANAGEMENT

6.1     BUSINESS TO BE MANAGED BY BOARD

        The Board shall be responsible for the management of the business of the
        Company and determining the overall policies and objectives of the
        Company. The Board shall delegate responsibility for managing the day to
        day operations of the Company to either the CEO or the Executive
        Committee on such terms as the Board deems desirable and subject always
        to the terms of this Agreement.

6.2     CEO

        In addition to the Directors appointed under Clause 5.1, CGP shall
        nominate and the Board shall appoint a CEO of the Company, provided
        that:

        (a)     any candidate for the post shall have the requisite technical
                qualifications and provided that prior to such nomination CGP
                shall consult Essar; and

        (b)     any appointment thereof shall be subject to Board approval.

6.3     PERFORMANCE OF CEO

        The CEO shall be responsible for the day to day operations of the
        Company subject to the overall control of the Board. The Parties
        recognise that the CEO will manage the business and affairs of the
        Company and that his performance shall be the subject matter of a
        consultative process and joint review of the Board.

6.4     MAJORITY VOTES REQUIRED FOR CERTAIN BOARD MEETING

        Notwithstanding any other provision in this Agreement, the Shareholders
        and CGP agree that the following matters shall not be implemented in
        respect of the Company without the passing of a resolution of the
        Directors present and voting, on the issue at a Board Meeting of the
        Company, which resolution is approved by at least one of the Essar
        Directors (for so long as Essar holds at least 10% of the issued and
        paid up share capital of the Company) and at least one of the CGP
        Directors (for so long as CGP holds at least 10% of the issued and paid
        up share capital of the Company), excluding interested Directors who are
        prohibited at law to vote thereon:

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        (a)     approval of the annual business plan of the Company where such
                business plan is not within guidelines agreed between the
                Parties;

        (b)     merger and/or consolidation of the Company or its business with
                another company or acquisition of the substantial part of the
                business or assets of another company;

        (c)     entry into a new business not carried on by the Company as at
                the date of this Agreement;

        (d)     sale of a substantial part of the business or assets of the
                Company;

        (e)     transactions between the Company and any Shareholder or its
                Affiliate;

        (f)     execution of High Value Contracts which have not been
                contemplated in the business plan or budget;

        (g)     execution of any agreement between the Company and any
                Shareholder or its Affiliate;

        (h)     liquidation, winding up of the Company; and

        (i)     amendment to the Memorandum or Articles of the Company.

6.5     RESERVED DECISIONS

        Decisions of the Board under sub-clauses (a) and (f) of Clause 6.4.
        shall be referred to "Reserved Decisions". In the event of the Board
        being unable to agree on any Reserved Decision within seven (7) days of
        the Board meeting, the following procedures shall apply:

        (a)     A summary of the facts surrounding the disputed Reserved
                Decision shall be sent by the Company to one of the Directors
                nominated by each of Essar, CGP and JKF ("Concerned Directors");

        (b)     Within seven (7) days of the receipt of such summary, the
                Concerned Directors shall meet and discuss the disputed Reserved
                Decision and shall take all steps and to reach a consensus
                acceptable to theShareholders and CGP;

        (c)     If the Concerned Directors are unable to reach a consensus in
                the manner set forth in sub-clause (b) above within a further

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                period of fourteen (14) days, then the matter shall be referred
                back to the Board where a simple majority shall be all that is
                required to decide the matter;

        (d)     In the event that either CGP or Essar have an objection to the
                decision reached in the manner set out in clause (c) above, it
                may give a notice to the other Shareholders and the Company and
                CGP (if applicable) within 14 days of such a decision being
                taken in accordance with clause (c), of its continuing
                objection. The Shareholders the Company and CGP shall then
                attempt to complete an IPO of the Company, if the prevailing
                market conditions so permit, within six months from the expiry
                of the 14 day period notice given by CGP or Essar pursuant to
                this sub clause.

        (e)     In the event of that Essar still disputes the decision and the
                IPO has not been effected within the aforesaid six month period,
                for any reason whatsoever Essar shall have a right to sell the
                Essar Shares to CGP or to its designated nominee (and CGP or its
                designated nominee shall be obligated to purchase the Essar
                Shares) at a price which is 10% less than Fair Value of the
                Essar Shares, as determined in the manner set out in Schedule A.

7.      BUSINESS PLAN & BUDGET

7.1     BUSINESS PLAN & BUDGET

        The Company shall prepare at least two months prior to the close of each
        Accounting Year and the Board shall review, amend and, if deemed
        appropriate, approve prior to the close of such Accounting year a
        business plan and a budget comprised of a balance sheet, profit and loss
        statement, cash flow statement, capital expenditure statement and
        funding requirements schedule covering the five year period commencing
        at the close of such Accounting Year. The Parties agree that the broad
        guidelines for drawing up the business plan include having a best in
        class network and customer service platform, best branding, sufficient
        cash requirement to tackle competition and with an initial focus on
        voice telephony to be followed by data business.

7.2     BUDGET DETAILS

        The budget shall be in sufficient detail to provide the Directors with
        information sufficient to facilitate their approval.

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8.      [***]

9.      FUNDING AND CAPITAL

9.1     FUNDING OF THE COMPANY

        Unless otherwise determined by the Board, the funds required by the
        Company shall be provided first, by the Company's cash flow, secondly,
        by external borrowings in accordance with Clause 9.3, thirdly, by
        shareholders loans and lastly, by the issue of additional share capital.
        The additional share capital shall either be equity or preference. The
        debt-equity ratio shall be determined by the Board from time to time. If
        further funding is required, the Shareholders shall provide such further
        funding pro rata on the basis of their respective shareholding in the
        Company.

9.2     CAPITAL CONTRIBUTION

        (a)     Based on the funding requirements of the Company, the CEO shall
                determine when equity capital calls are to be made, and shall
                make a recommendation to the Board for making equity capital
                calls. The Board may, from time to time, pass resolutions
                calling for equity capital contributions to the Company (each
                such contribution a "Capital Contribution") from the
                Shareholders which will result in the Company receiving the
                amount of cash determined by the Board to be necessary to fund
                the business needs of the Company to support growth requirements
                (each such resolution, a "Cash Call"). Each Capital Contribution
                pursuant to this Clause 9.2 shall be made by the Shareholders in
                the form of a subscription to Shares. The Shareholders shall
                make such Capital Contributions in proportion to their
                respective holdings of the total issued and paid-up share
                capital of the Company at the time of the applicable Cash Call.
                Unless otherwise specified by the Board of Directors, each
                Capital Contribution shall be payable by the Shareholders in
                Rupees, on the date specified in the applicable Cash Call, by
                wire transfer to the account of the Company specified in such
                Cash Call.

        (b)     If any Shareholder does not pay or procure payment of its
                ratable portion of any Capital Contribution required to be made
                pursuant to sub-clause (a) above within thirty (30) days from
                the date of the applicable Cash Call (or such other extended

                                       17

<PAGE>

                period as may be required to obtain necessary regulatory
                approvals), each of the other Shareholders if it has paid its
                ratable portion of such Capital Contribution, has the option to
                pay or ensure that its designee pays a pro-rata share of such
                non-paying Shareholder's portion in the form of a subscription
                of Shares, thereby increasing its respective holdings of the
                total issued and paid-up share capital of the Company, and
                decreasing the percentage holdings of the non-paying
                Shareholder's holding in the total issued and paid-up capital of
                the Company. The valuation for the issue of the Shares pursuant
                to this Clause 9.2 shall be as agreed to between the Parties, or
                if the Parties cannot reach an agreement within 14 days, Fair
                Value determined in the manner set forth in Schedule A.

9.3     DEBT FINANCING

        In the event that the financing is done through external borrowing by
        the Company, the Parties shall take all reasonable steps to ensure that
        the debt is subject to the following conditions:

        (a)     that the debt is without recourse to the Shareholders; or

        (b)     where the lenders do not accept a non recourse loan or where the
                terms of the non recourse loan are not on reasonable commercial
                terms acceptable to the Board and therefore the debt involves
                recourse to the Shareholders, the Shareholders shall provide
                corporate guarantees for their respective Shares on a pro rata
                basis.

9.4     CREDIT SUPPORT

        In the event that the corporate guarantee(s) provided by the
        Shareholders in accordance with Clause 9.3(b) are not acceptable to the
        lenders, then the CEO shall determine whether it may be appropriate to
        procure further guarantees from the Shareholders that are acceptable to
        the lenders or to make equity capital calls in the manner set forth in
        Clause 9.2 above. In the event that the CEO determines that further
        guarantees are to be procured from the Shareholders on a pro rata basis,
        and any Shareholder cannot provide such guarantees, then the Board may
        call upon any other Shareholder(s) to guarantee or support the entire
        amount of the debt financing, provided that the Shareholder providing
        such support shall be entitled to the option ("Guarantee Call Option")
        either directly or through a designee to purchase Shares of the
        defaulting Shareholder in the following manner and to the following
        extent:

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<PAGE>

        (a)     the number of shares for which the option to apply to be equal
                to a number so as to ensure that the Shareholder exercising the
                Guarantee Call Option holds such percentage of the Shares of the
                Company upon exercising the Guarantee Call Option as it would
                have held had an equity call for the amount of the credit
                support been made at the time of providing the credit support;

        (b)     the price of the Shares to be sold if the non-defaulting
                Shareholder exercises the Guarantee Call Option shall be 10%
                above the Fair Value at the time of providing the credit
                support. Fair Value shall be as determined in the manner set out
                in Schedule A;

        (c)     the non-defaulting Shareholder exercising the Guarantee Call
                Option may exercise such Guarantee Call Option at any time
                provided the non-defaulting Shareholder provides at least 15
                Business Days' notice of its intention to exercise the Guarantee
                Call Option to the defaulting Shareholder. The defaulting
                Shareholder shall have the right to terminate the Guarantee Call
                Option at any time, including during such notice period, by
                providing its share of credit support in accordance with this
                Clause 9.4.

10.     TRANSFER OF SHARES

10.1    RESTRICTIONS ON TRANSFERS OF OWNERSHIP

        No rights conferred by the ownership of a Share may be transferred
        separately from legal title to the Share itself and no Share can be
        transferred other than pursuant to the provisions of this Agreement. Any
        transfer of Shares not made in accordance with the provisions of this
        Agreement shall be null and void ab initio.

10.2    NO MORTGAGE OR PLEDGE OF SHARES

        Each of the Shareholders, hereby undertakes with the others that during
        the continuance of this Agreement it shall not, without the prior
        written consent of the other Shareholders (which may be given in their
        sole discretion and subject to such terms and conditions as they may
        deem fit):

        (a)     mortgage, charge, pledge or otherwise encumber the whole or any
                part of its Shares; or

                                       19

<PAGE>

        (b)     assign or otherwise purport to deal with the beneficial interest
                therein or any right in relation thereto separately from the
                legal interest,

        provided that the Mauritius Companies and JKF shall not unreasonably
        withhold their consent to a pledge of the Essar Shares if the pledge is
        required to refinance the loan provided to Essar on the Effective Date
        by GE Capital Services India and the party taking the pledge
        acknowledges the fact that the Essar Shares are subject to the terms of
        this Agreement.

10.3    PERMITTED TRANSFERS

        Subject to Clause 10.11 hereof, any Shareholder may transfer its Shares
        to an Affiliate thereof, so long as the transferee has executed an
        instrument agreeing to be bound by the terms of this Agreement.

10.4    DEFAULT

        A Shareholder shall be in default for the purposes of Clause 10.5 if:

        (a)     it breaches Clause 10.1;

        (b)     it breaches Clause 10.2;

        (c)     it commits a material breach of any provision of this Agreement
                and fails to remedy such breach within 30 days of being required
                in writing to do so by any other Shareholder;

        (d)     it becomes bankrupt or insolvent or stops payment to or makes an
                arrangement with its creditors generally, or any resolution is
                passed for its winding up or bankruptcy (other than a winding up
                for the purpose of reconstruction or amalgamation) or any
                petition or proceedings to winding up that Shareholder has been
                admitted by a competent court of law (and such petition or
                proceeding is not disputed in good faith) or it ceases to exist
                or there is an attachment of or the levy of execution on a
                substantial part of the assets or business of that Shareholder
                which is not remedied within 120 days, or an encumbrancer takes
                possession of or a receiver, trustee, administrator or similar
                officer is appointed over all or substantial part of its assets
                or business; or

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<PAGE>

        (e)     it breaches Clause 13.

10.5    SALE OF SHARES ON DEFAULT

        If any Shareholder is in default within the meaning of Clause 10.4 (the
        "Defaulting Party") the other Shareholders or any of them (not including
        the Company or any Affiliate of the Defaulting Party) (the
        "Non-Defaulting Parties") may within 30 days of becoming aware of such
        default give the Defaulting Party, written notice of the default
        ("Disposal Notice") requiring the Defaulting Party to transfer all of
        its Shares (the "Disposal Shares") to the Non-Defaulting Party or its
        designee at 10% less than the Fair Value determined in the manner set
        forth in Schedule A , and the Disposal Shares shall then be promptly
        transferred to the Non-Defaulting Party or its designee. In the event of
        more than one Disposal Notices being served, any transfer of Shares
        thereby resulting shall be pro-rata to the existing respective
        shareholdings in the Company of the Non-Defaulting Parties in question.
        In order to facilitate such sale and transfer the following shall apply:

        (a)     30 days after the receipt by the Defaulting Party of the
                Disposal Notice, the Directors in the Company appointed by the
                Non-Defaulting Parties or its Affiliates (the "Non-Defaulting
                Directors") shall be constituted the agent of the registered
                owner of the Disposal Shares, for the sale of the Disposal
                Shares to the Non Defaulting Party or Parties or its designees.

        (b)     Within 7 days after the expiry of the 30 day period referred to
                in Clause 10.5 (a) above, the Non-Defaulting Directors shall
                execute in the name and on behalf of the registered owners
                thereof, and deliver to the Non-Defaulting Parties, a transfer
                of the Disposal Shares to the Non-Defaulting Parties or its
                designee in exchange for cashiers or bank cheques in favour of
                the registered owners of the Disposal Shares at 10% less than
                the Fair Value. The Non-Defaulting Directors shall hold the
                cheques to the order of the registered owners of the Disposal
                Shares, once such Shares have been registered in the name of the
                Non-Defaulting Party or its designee.

        (c)     Notwithstanding the provisions of Clauses 5.9, 5.11 and 6.4, the
                Directors of the Company nominated by the Non-Defaulting Parties
                shall constitute a quorum for passing a resolution to register
                the transfer of the Disposal Shares to the transferee.

        (d)     In the event that Government and regulatory approvals are needed
                for the transfer of the Disposal Shares to the

                                       21

<PAGE>

                Non-Defaulting Party or its designee, the time for transfer and
                payment for such Shares shall be extended while such approval is
                being actively sought by the Non-Defaulting Party or its
                designee.

        (e)     In the event that the Non-Defaulting Party or one of its
                Affiliates is unable to take up any of the Disposal Shares due
                to Indian law or foreign investment regulations, such
                Non-Defaulting Party shall be entitled to nominate any third
                party acceptable under Indian law to acquire such Disposal
                Shares.

        (f)     The Defaulting Party agrees not to take any actions to prevent
                or delay the transfer and registration of the Disposal Shares.

        The rights of the Non Defaulting Parties under this Clause 10.5 shall be
        in addition to and without prejudice to their rights to claim damages
        and other remedies against the Defaulting Party.

10.6    REPAYMENT OF SHAREHOLDER LOANS AND GUARANTEES

        In the event of any transfer of Shares consequent on a default and
        unless otherwise agreed:

        (a)     any shareholder loans advanced by the Defaulting Party or any of
                its Affiliates shall, notwithstanding the terms of such loan, be
                repaid :

                (i)     by the Company at the later of the original repayment
                        date or the first anniversary of the date of such
                        transfer; or

                (ii)    by an assignment or novation of all or part of such
                        loan(s) to the Non-Defaulting Party or its designee at
                        the face value plus the accumulated interest on the
                        loans to the Non-Defaulting Party or its designee, as
                        may be agreed between the Non-Defaulting Party and the
                        Company. Any interest agreed to be paid by the Company
                        in respect of such loan(s) shall continue to accrue
                        until payment shall be made in full but not otherwise;

        (b)     the Non Defaulting Parties shall use reasonable endeavours to
                procure the release of any shareholder guarantee given by the
                Defaulting Party or any of its Affiliates for the benefit of the
                Company.

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<PAGE>

10.7    TITLE AND COMPLETION OF SHARE TRANSFERS

        All transfers of Shares shall be effected by the transferor selling as
        beneficial and legal owner free and clear of all liens, charges and
        encumbrances and together with all rights attaching thereto, and upon
        completion, the transferor shall deliver to the transferee, forms of
        transfer in respect of the relevant Shares duly executed by the
        transferor in favour of the transferee together with the relevant share
        certificates and shall vote on the Board to register the transferee as
        the owner of the Shares against payment by the transferee of the price
        due in respect thereof. Subject to this Clause 10.7 the Parties shall
        thereupon do or procure to be done all such acts and things as may be
        necessary to give full effect to the transfer and the registration
        thereof.

10.8    RIGHTS OF FIRST REFUSAL

10.8.1  Essar Shares

        (a)     Should Essar wish to transfer any Shares (except for the
                transfer of Shares permitted in Clause 10.3), it shall offer
                them to the Mauritius Companies and JKF or their designees, in
                proportion to their respective shareholdings in the Company, by
                serving a transfer notice ("Essar Transfer Notice") on them
                stating the number of Shares ("Essar Offer Shares") which it
                proposes to sell and whether any shareholder loans or part
                thereof are to be sold as condition of the sale of the Essar
                Offer Shares together with:

                (i)     the price and other terms, if any, at which it is
                        willing to sell Essar Offer Shares and shareholder
                        loans, such price not being higher or the terms more
                        onerous than those to any bona fide third person
                        offering to buy the Essar Offer Shares or, in the case
                        of shareholder loans such price being not higher than
                        the face value of such loans plus the accumulated
                        interest thereon, if any;

                (ii)    such details of the terms of any bona fide offer it has
                        received to purchase the Essar Offer Shares and the
                        shareholder loans, if any, as may be reasonably
                        necessary for the Mauritius Companies and JKF to
                        determine the price and other terms of such offer ;

                (iii)   the identity of the person making the offer ("Essar
                        Prospective Purchaser") and of its ultimate parent

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<PAGE>

                        company and beneficial owner and/ or the true buyer (if
                        known to be different).

        (b)     Within 21 days after the Essar Transfer Notice is given any of
                the Mauritius Companies and JKF may:

                (i)     if the Essar Transfer Notice is accompanied by details
                        of a bona fide offer, require Essar to produce to it
                        such further evidence as it may reasonably require to
                        enable it to establish the bona fides of the offer by
                        the Essar Prospective Purchaser;

                (ii)    if the Essar Transfer Notice is not accompanied by
                        details of a bona fide offer, serve on Essar and the
                        Company a notice requiring the Fair Value of the Essar
                        Offer Shares to be determined ("Essar Valuation
                        Notice");

        (c)     Each of the Mauritius Companies and JKF shall be entitled within
                a period of 21 days after any Essar Transfer Notice is given or
                within a period of 7 days after the date of provision to them of
                such further evidence or information as may be requested under
                Clause 10.8.1(b)(i) as the case may be (whichever is the later),
                to serve a purchase notice ("Essar Purchase Notice") on Essar
                stating:

                (i)     that it wishes to purchase the Essar Offer Shares and
                        the shareholder loans if any at the price and on the
                        other terms stated in the Essar Transfer Notice; or

                (ii)    that it declines the Essar Offer Shares.

        (d)     Subject to clauses 10.8.1 (e) and (f), if Essar has not received
                Essar Purchase Notice (or Notices) under the terms of Clause
                10.8.1(c) (i) in respect of the total number of Essar Offer
                Shares or having received the same has not within 30 days
                thereafter received the price for the Essar Offer Shares in
                return for a transfer complying with Clause 10.7, it shall be
                entitled to sell all, but not less than all, of the Essar Offer
                Shares not so purchased to the Essar Prospective Purchaser if
                there is any, otherwise to any person at not less than the price
                and on the terms no less onerous than those set out in the Essar
                Transfer Notice provided that if such sale is not completed
                within 90 days after the expiry of the relevant time period
                referred to in Clause 10.8.1(c), subject to any extension
                thereof under Clause 10.10(c) hereof, the right to sell the
                Essar Offer Shares to the Essar Prospective Purchaser or any
                other person shall lapse.

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<PAGE>

        (e)     In the event that a Essar Valuation Notice is served under the
                provisions of Clause 10.8.1(b) (ii) then, the provisions of
                Schedule A shall apply. On determination of the Fair Value in
                accordance with such schedule, the Company shall forthwith upon
                receipt of the valuers'(as defined in Schedule A below)
                determination notify Essar, the Mauritius Companies and JKF
                thereof and then each of the Mauritius Companies and JKF shall
                have the option within 14 days of the Company's notice under
                this Clause 10.8.1(e) to serve a purchase notice ("Essar
                Purchase Notice") on Essar stating the Essar Offer Shares and
                shareholder loans (if any) which it wishes to purchase.

        (f)     In respect of Clause 10.8.1(e) hereof, if Essar has not received
                Essar Purchase Notice (or Notices) in respect of the total
                number of Essar Offer Shares or having received the same has not
                within 30 days thereafter received the total price for the Essar
                Offer Shares in return for a transfer complying with Clause
                10.7, Essar shall be entitled to sell all but not part of the
                Essar Offer Shares not so purchased to any person at a price not
                less than that represented by the Fair Value, provided that if
                such sale is not completed within 90 days after the expiry of
                the relevant time period referred to in Clause 10.8.1(b)(ii)
                subject to any extension thereof under Clause 10.10(c) the right
                to sell the Offer Shares shall lapse.

        (g)     (i)     In the event of there being more than one Essar Purchase
                        Notice served on Essar, the Parties serving such
                        Purchase Notice shall be entitled to purchase the Essar
                        Offer Shares in proportion to the size of their
                        respective shareholdings in the Company. If more than
                        one Essar Purchase Notice is served on Essar, Essar
                        shall so inform the Company which shall allocate the
                        Essar Offer Shares to such Parties who have served a
                        Essar Purchase Notice, in proportion to their
                        shareholdings in the Company. The Company shall
                        forthwith give notice of such allocations to Essar and
                        such Parties, and Essar shall be bound upon payment to
                        transfer the Essar Offer Shares so allocated to such
                        Parties; provided that Essar shall not be bound to
                        transfer the Essar Offer Shares to any purchaser unless
                        it has received payment in full for all such Essar Offer
                        Shares.

                (ii)    Provided that nothing in this Clause 10.8.1 shall apply
                        in respect of an IPO, including any restructuring
                        required

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<PAGE>

                        prior to an IPO or by virtue of any governmental
                        guidelines or requirements.

10.8.2  CGP Shares

        (a)     Should any of the Mauritius Companies (the "Transferor MC") wish
                to transfer any Shares (except for the transfer of Shares
                permitted in Clause 10.3), it shall offer them to Essar and JKF
                or their designees, in proportion to their shareholdings in the
                Company, by serving a transfer notice ("MC Transfer Notice") on
                them stating the number of Shares ("MC Offer Shares") which it
                proposes to sell and whether any shareholder loans or part
                thereof are to be sold as condition of the sale of the MCOffer
                Shares together with:

                (i)     the price and other terms, if any, at which it is
                        willing to sell its MC Offer Shares and shareholder
                        loans, such price not being higher or the terms more
                        onerous than those to any bona fide third person
                        offering to buy the MC Offer Shares or, in the case of
                        shareholders loans such price not being higher than the
                        face value of such loans and the accumulated interest
                        thereon, if any;

                (ii)    such details of the terms of any bona fide offer it has
                        received to purchase the MC Offer Shares and the
                        shareholder loans if any as may be reasonably necessary
                        for Essar and JKF to determine the price and other terms
                        of such offer ;

                (iii)   the identity of the person making the offer ("MC
                        Prospective Purchaser") of its ultimate parent company
                        and beneficial owner and/ or the true buyer (if known to
                        be different).

        (b)     Within 21 days after the MC Transfer Notice is given any of
                Essar and JKF may:

                (i)     if the MC Transfer Notice is accompanied by details of a
                        bona fide offer, require the Transferor MC to produce to
                        it such further evidence as it may reasonably require to
                        enable it to establish the bona fides of the offer by
                        the MC Prospective Purchaser;

                (ii)    if the MC Transfer Notice is not accompanied by details
                        of a bona fide offer, serve on the Transferor MC and the

                                       26

<PAGE>

                        Company a notice requiring the Fair Value of the MC
                        Offer Shares to be determined ("MCValuation Notice").

        (c)     Each of Essar and JFK shall be entitled within a period of 21
                days after any MC Transfer Notice is given or within a period of
                7 days after the date of provision to them of such further
                evidence or information as may be requested under 10.8.2(b) (i)
                as the case may be (whichever is the later), to serve a purchase
                notice ("MC Purchase Notice") on the Transferor MC stating:

                (i)     that it wishes to purchase the MC Offer Shares and the
                        shareholder loans if any, at the price stated in the MC
                        Transfer Notice; or

                (ii)    that it declines the MC Offer Shares.

        (d)     Subject to Clauses 10.8.2 (e) and (f), if the Transferor MC has
                not received a MC Purchase Notice (or Notices) under the terms
                of Clause 10.8.2(c) in respet of the total number of MC Offer
                Shares or having received the same has not within 30 days,
                thereafter received the price for the MC Offer Shares in return
                for a transfer complying with Clause 10.7, it shall be entitled
                to sell all, but not less than all, of the MC Offer Shares not
                so purchased to the MC Prospective Purchaser if there is any,
                otherwise to any person at not less than the price and on terms
                no less onerous than those set out in the MC Transfer Notice
                provided that if such sale is not completed within 90 days after
                the expiry of the relevant time period referred to in Clause
                10.8.2 (c), subject to any extension thereof under Clause
                10.10(c) hereof, the right to sell the MC Offer Shares to the MC
                Prospective Purchaser or any other person shall lapse.

        (e)     In the event that a MC Valuation Notice is served under the
                provisions of Clause 10.8.2(b) (ii) then, the provisions of
                Schedule A shall apply. On determination of the Fair Value in
                accordance with such schedule, the Company shall forthwith upon
                receipt of the valuers' determination notify the Transferor MC,
                Essar and JKF thereof and then each of Essar and JKF shall have
                the option within 14 days of the Company's notice under this
                Clause 10.8.2 (e) to serve a purchase notice ("MC Purchase
                Notice") on the Transferor MC stating the MC Offer Shares and
                shareholder loans (if any) it wishes to purchase.

        (f)     In respect of Clause 10.8.2 (e) hereof, if the Transferor MC has
                not received a MC Purchase Notice (or Notices) in respect of the
                total number of MC Offer Shares or having received the

                                       27

<PAGE>

                same has not within 30 days thereafter received the total price
                for the MC Offer Shares in return for a transfer complying with
                Clause 10.7, the Transferor MC shall be entitled to sell all but
                not part of the MC Offer Shares not so purchased to any person
                at a price not less than that represented by the Fair Value,
                provided that if such sale is not completed within 90 days after
                the expiry of the relevant time period referred to in Clause
                10.8.2 (b)(ii) subject to any extension thereof under Clause
                10.10(c) the right to sell the MC Offer Shares shall lapse.

        (g)     (i)     In the event of there being more than one Purchase
                        Notice served on the Transferor MC, the Parties serving
                        such Purchase Notice shall be entitled to purchase the
                        MC Offer Shares in proportion to the size of their
                        respective shareholdings in the Company. If more than
                        one Purchase Noticeis served on the Transferor MC, the
                        Transferor MC shall so inform the Company which shall
                        allocate the MC Offer Shares to such Parties who have
                        served a MC Purchase Notice, in proportion to their
                        shareholdings in the Company. The Company shall
                        forthwith give notice of such allocations to the
                        Transferor MC and such Parties, and the Transferor MC
                        shall be bound upon payment to transfer the MC Offer
                        Shares so allocated to such Parties, provided that the
                        Transferor MC shall not be bound to transfer the MC
                        Offer Shares to any purchaser unless it has received
                        payment in full for such MC Offer Shares.

                (ii)    Provided that nothing in this Clause 10.8.2 shall apply
                        in respect of an IPO, including any restructuring
                        required prior to an IPO or by virtue of any
                        governmental guidelines or requirements.

10.8.3  JKF Shares

        (a)     Should JKF wish to transfer any Shares (except for the transfer
                of Shares permitted in Clause 10.3), it shall offer them to the
                Mauritius Companies by serving a transfer notice ("Transfer
                Notice") on the Mauritius Companies stating the number of Shares
                ("Offer Shares") which it proposes to sell and whether any
                shareholder loans or part thereof are to be sold as condition of
                the sale of the Offer Shares together with:

                (i)     the price and other terms, if any, at which it is
                        willing to sell its Offer Shares and shareholder loans,
                        such price not

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<PAGE>

                        being higher or the terms more onerous than those to any
                        bona fide third person offering to buy the Offer Shares
                        or, in the case of shareholders loans, such price not
                        being higher than the face value of such loans and the
                        accumulated interest thereon, if any;

                (ii)    full details of the terms of any bona fide offer it has
                        received to purchase the Offer Shares, if any; and

                (iii)   the identity of the person making the offer
                        ("Prospective Purchaser") and its ultimate parent
                        company and beneficial owner and/or the true buyer (if
                        know to be different).

                (b)     Within 21 days after the Transfer Notice is given, any
                        of the Mauritius Companies may, (i) if the Transfer
                        Notice is accompanied by details of a bona fide offer,
                        require JKF to produce to it such further evidence as it
                        may reasonably require to enable it to establish the
                        bona fides of the offer by the Prospective Purchaser; or
                        (ii) if the Transfer Notice is not accompanied by
                        details of a bona fide offer, serve on JKF and the
                        Company a notice requiring the Fair Value of the Offer
                        Shares to be determined in the manner set forth in
                        Schedule A hereto ("Valuation Notice");

                (c)     Each of the Mauritius Companies shall be entitled within
                        a period of 21 days after any Transfer Notice is given
                        or wihtin a period of 7 days after the date of provision
                        to it of such further evidence or information as may be
                        requested under Clause 10.8.3 (b) (i) as the case may be
                        (whichever is the later) to serve a purchase notice
                        ("Purchase Notice") on JKF

                (i)     stating that it wishes to purchase the Offer Shares and
                        shareholder loans at the price stated in the Transfer
                        Notice; or

                (ii)    that it declines the Offer Shares.

        (d)     In the event that a Valuation Notice is served under the
                provision of Clause 10.8.3(b)(ii) then the provisions of
                Schedule A shall apply. On determination of the Fair Value in
                accordance with such schedule, the Company shall forthwith upon
                receipt of the Valuers' determination notify JKF and the
                Mauritius Companies thereof and then each of the Mauritius

                                       29

<PAGE>

                Companies shall have the option within 14 days of the Company's
                notice under this Clause 10.8.3(d) to serve a purchase notice
                (the "Purchase Notice") on JKF stating the Offer Shares and
                shareholder loans (if any) it wishes to purchase.

        (e)     If JKF has not received a Purchase Notice (or Notices) for the
                Offer Shares or having received the same has not within 30 days
                thereafter received the total price for the Offer Shares from
                the relevant Mauritius Companies in return for a transfer
                complying with Clause 10.7, JKF shall offer the Offer Shares to
                Essar and the terms of this Clause 10.8.3 (a) to (d) shall apply
                mutatis mutandis, in respect of such offer to Essar.

        (f)     If JKF has not received a Purchase Notice for the Offer Shares
                or having received the same has not within 30 days thereafter
                received the total price for the Offer Shares from Essar in
                return for a transfer complying with Clause 10.7, JKF shall be
                entitled to sell all but not part of the Offer Shares to the
                Prospective Purchase at a price not less than the price and on
                terms no less onerous than those set out in the Transfer Notice
                provided that if such sale is not completed within 90 days after
                the expiry of the relevant time period referred to in Clause
                10.8.3 (b) (ii) subject to any extension thereof under Clause
                10.10 (c) the right to sell the Offer Shares shall lapse.

10.9    TAG ALONG

        Subject to Clause 10.10 hereof, in the event that the Mauritius
        Companies intend to sell more than 80% of their aggregate shareholdings
        in the Company (the "Sale Shares") otherwise than as permitted by Clause
        10.3 hereof:

        (a)     they shall notify Essar in writing stipulating the principal
                terms and conditions of any such sale, particularly as to the
                price and time scale thereof (the "Sale Notice");

        (b)     Essar may, by written notice to the Mauritius Companies, within
                21 days or such longer reasonable period permitted by the
                timescale shown by the Sale Notice, exercise it rights under
                this Clause 10.9 to the effect that it wishes to dispose of a
                number of the Shares equal to the parties respective
                shareholding in the Company (pro rata the number of Sale Shares
                in question) in the context of the sale contemplated by the Sale
                Notice;

                                       30

<PAGE>

        (c)     The Mauritius Companies shall procure that the intended
                purchaser of the Sale Shares shall extend its offer to purchase
                the same to the Essar Shares, on terms no less favourable than
                those relating to the Sale Shares;

        (d)     Essar shall thereafter co-operate with the Mauritius Companies
                and do all things necessary to effect completion of a sale of
                the Essar Shares substantially on the terms contemplated by the
                Sale Notice;

        Provided that:

        (i)     it is hereby agreed and acknowledged that all negotiations in
                respect of a sale under the provisions of this Clause 10.9 shall
                be conducted by the Mauritius Companies who, however, shall take
                due note of any reasonable requests of Essar in regard thereto;

        (ii)    the tag along rights under this Clause 10.9 shall be in
                compliance with the relevant Government of India regulations;
                and

        (iii)   in the event that any such sale does not proceed to completion
                for whatever reason, neither party shall have any claim against
                the other in respect thereof, whether for damages, costs or
                otherwise.

10.10   SECTORAL CAPS

        It is hereby agreed that:

        (a)     the Parties shall do all things necessary to ensure that any
                exercise of the rights comprised in this Clause 10 hereof shall
                not give rise to any breach of the sectoral caps of the
                Government of India then in force relating to foreign investment
                in the telecom sector; and

        (b)     any sale or transfer contemplated under the provisions of this
                Clause 10 shall be subject to any necessary Government or
                regulatory approvals, whether in respect of the said sectoral
                caps or otherwise; and

        (c)     any time limit imposed by the provisions of this Clause 10 shall
                be extended pro tanto in respect of any period reasonably
                necessary to obtain any approval under Clause 10.10 (b) hereof.

                                       31

<PAGE>

                Provided that, the parties shall use all reasonable endeavours
                to expedite the obtaining of any such approvals; and

        (d)     If any Shareholder is unable to take up any Shares to be
                transferred in accordance with the provisions of this Agreement
                or any part thereof due to Indian law or foreign investment
                regulations, such Shareholder shall be entitled to nominate any
                third party acceptable under such law to purchase such Shares or
                any part thereof.

10.11   DEED OF ADHERENCE

        If Shares are being transferred in accordance with the provisions of
        this Agreement to any party not already bound by the terms of this
        Agreement, then the Shareholder transferring those Shares must procure
        prior to such transfer that such transferee, agrees to be bound by this
        Agreement by signing a deed of adherence in a form approved by the
        Board.

11.     FURTHER OBLIGATIONS OF THE PARTIES

11.1    FURTHER ASSURANCE

        The Parties shall do and execute or procure to be done and execute all
        such further acts, deeds, things and documents as may be necessary to
        give full effect to the terms of this Agreement.

11.2    DIRECTORS TO VOTE TO IMPLEMENT THIS AGREEMENT

        Each of the Shareholders and CGP shall procure that any Director
        nominated by it, shall exercise or refrain from exercising any voting
        rights so as to ensure the passing of any resolution necessary to give
        full effect to the provisions of this Agreement.

11.3    ACCOUNTING AND REPORTING

        Each of the Shareholders shall (to the extent it is within its power to
        do so) procure that the Company will and the Company shall:

        (a)     prepare business plans and budgets as set out in Clause 7.1;

        (b)     keep true and accurate books of accounts and records in
                accordance with Indian and internationally accepted accounting
                practice and procedure and in accordance with Indian law and
                procure that such books and records are audited by the auditors

                                       32

<PAGE>

                annually as soon as possible after the end of each financial
                year;

        (c)     upon reasonable written notice to the Company allow the
                Shareholders or their authorised representatives or professional
                advisers and the Directors, the right during normal business
                hours to inspect the books, accounting records and any documents
                or records of the Company, to make extracts and copies therefrom
                at their own expense, and to have full access to all its
                property and assets; and

        (d)     supply to each Director, such regular management and financial
                information in English as is customary and as they may from time
                to time reasonably require Including monthly financial reports,
                monthly operating reports and status of various compliances.

11.4    EXCHANGE OF INFORMATION

        Each of the Parties shall promptly notify each other and the Company, of
        all or any matters coming to its notice which may affect the title to or
        enjoyment of the Company's premises, licences, authorisations, assets or
        property or the conduct of its business, and of all notifications,
        orders, demand and other communication received from any government or
        other authority in relation to the Company's business, licences,
        authorisations, assets or property.

11.5    FAIR DEALINGS

        All dealings between the Company and any Party or any Affiliate of a
        Party shall be on a fair and equitable basis and at arm's length.

12.     MAINTENANCE OF LICENCES, GOVERNMENT APPROVALS

        Each of the Parties shall (to the extent it is within its power to do
        so) procure that the Company shall :

        (a)     use its best endeavours to obtain and maintain in full force and
                effect all governmental or other approvals, consents, licences,
                authorisations, declarations, filings and registrations as may
                be required or advisable for the carrying on of its business
                ("Relevant Authorisations"); and

                                       33

<PAGE>

        (b)     obtain and keep in effect such new or additional Relevant
                Authorisations as may become necessary for the carrying on of
                its business.

13.     TERM, TERMINATION AND DISPUTES

13.1    TERM

        This Agreement shall continue in force from the date hereof, until a
        Shareholder ceases to hold any Shares in the Company or unless
        terminated by six months written notice upon mutual consent of Essar,
        CGP and JKF.

13.2    RIGHTS OF PARTIES ON WINDING UP

        The Parties may prove in the winding-up of the Company to the maximum
        extent permitted by law for all sums due or to fall due to them
        respectively from the Company and shall exercise all rights of set off
        and generally do all such other acts and things as may be available to
        them in order to obtain the maximum receipts and recoveries.

13.3    AGREEMENT TERMINATES ON WINDING UP

        In the event of the winding up of the Company, this Agreement shall
        terminate and all of the terms of this Agreement shall cease to bind the
        Parties. Termination of this Agreement shall not affect the rights of
        any Party to exercise its rights in respect of any breach of this
        Agreement by any or all of the Parties prior to the winding up of the
        Company. In the event of any Party ceasing to have any legal or
        beneficial interest in any Shares, the terms of this Agreement shall
        cease to bind such Party (except Clause 13 which shall continue to bind
        such Party) without prejudice to the rights of the other Parties to
        exercise their rights in respect of any breach of this Agreement by the
        departing Party prior to its ceasing to have any such interest, and if
        none of its Subsidiaries own any Shares, the Party ceasing to have such
        interest shall cause the Directors and CEO(if any) nominated by it to
        resign immediately.

14.     ARBITRATION AND CONSULTATION

14.1    CONSULTATION

        In the case of any dispute arising out of or in connection with this
        Agreement or its performance, including any question regarding its

                                       34

<PAGE>

        existence, validity or termination, the Parties shall first endeavour to
        reach an amicable settlement through mutual consultations and
        negotiations. If the Parties are unable to reach an amicable settlement
        within 30 Banking Days from the date on which the dispute arose (except
        as to any matter for which express provisions are made in this
        Agreement), any of the Parties may make a reference to arbitration in
        accordance with Clause 14.2 hereof.

14.2    ARBITRATION

        (a)     In the absence of any settlement of disputes under Clause 14.1
                above, any and all disputes or differences arising out of or in
                connection with this Agreement or its performance shall be
                submitted to arbitration at the request of a Party upon written
                notice to that effect to the other Party/ Parties and such
                arbitration shall be conducted in accordance with the Indian
                Arbitration and Conciliation Act, 1996 (the "Arbitration Act")
                by a panel consisting of three (3) arbitrators.

        (b)     While submitting the dispute or difference to arbitration in
                accordance with sub-clause (a) above, the Party, while so
                submitting shall, in its notice, specify the name of one
                arbitrator appointed by it. Within 30 days of the receipt of
                notice, the other Parties shall appoint an arbitrator. The third
                arbitrator (who will act as the chairman) shall be nominated by
                the two arbitrators appointed as aforesaid or, failing such
                nomination within 30 days of the appointment of the second
                arbitrator, shall be appointed in accordance with the
                Arbitration Act. Each of the arbitrators shall be either a
                retired judge of the Supreme Court of India or retired judge of
                one of the high Court of India or a reputed member of the Bar
                Council of India having at least 15 years of experience as an
                advocate.

        (c)     The language of the arbitration shall be English. The venue of
                the arbitration shall be at Mumbai, India.

        (d)     The Parties agree that the award of the arbitrators shall be
                final and binding upon the Parties, and that none of the Parties
                shall be entitled to commence or maintain any action in a court
                of law upon any matter in dispute arising from or in relation to
                this Agreement, except for the enforcement of an arbitral award
                granted pursuant to this Clause if required.

                                       35

<PAGE>

15.     CONFIDENTIALITY

15.1    AGREEMENT CONFIDENTIAL

        The Parties agree to keep secret and confidential and not to disclose,
        except to the extent required by law or any regulatory authority, to any
        third party without the prior written consent of Essar, CGP, the
        Mauritius Companies and JKF any information (including the information
        as to the execution of this Agreement) or documents (including this
        Agreement and other related agreements that the Parties may execute)
        relating to the operation of the business of the Company.

        Any formal press or other public announcement in writing relating to
        this Agreement or any of its terms shall be in a form previously agreed
        Essar, CGP and JKF.

15.2    INJUNCTIVE RELIEF

        The obligations cast upon the Parties by this Clause 15 are extremely
        valuable, for which no adequate monetary compensation may be available,
        and accordingly performance of the said obligations by the other Party
        forms the very substance of this Agreement and goes to its very root and
        intent for which the aggrieved Party shall be, notwithstanding any other
        stipulation in this Agreement (including the arbitration provision),
        entitled to injunctive relief from the appropriate law courts in the
        event of the failure of the other Party to perform the said obligations.

15.3    SURVIVAL

        The rights, duties and obligations contained in this Clause 15 shall
        survive termination of this Agreement or the winding up of the Company.

16.     [***]

17.     AGREEMENT

17.1    AGREEMENT TO PREVAIL

        If any provision of the Memorandum or the Articles at any time conflicts
        with any provision of this Agreement then, to the extent permitted by
        Indian law, as between the Parties the provisions of this Agreement
        shall prevail.

                                       36

<PAGE>

17.2    AMENDMENT OF MEMORANDUM AND ARTICLES

        Each of the Parties hereby undertakes that it shall whenever necessary
        exercise all voting and other rights and powers available to it to
        procure the amendment of the Memorandum and Articles to the extent
        necessary to permit the Company and its affairs to be operated as
        provided herein so that the same are consistent with the provisions of
        this Agreement.

18.     NOTICES

        Any notice to be given by any Party to this Agreement should be in
        writing and shall be deemed duly served if delivered personally or sent
        by fax or by prepaid registered post (airmail in the case of
        international mail) to the addressee at the address or fax number set
        opposite its name below or at such other address or fax number as the
        Party to be served may have notified as its address or fax number for
        service:

        Essar Teleholdings Limited

                To:        the Registered Office address stated above
                           (to the attention of the Director )

                Copy to:

                Tel:       (91-11)
                Fax:       (91 11)
                Attn:      Director

        CGP and the Mauritius Companies:

                To:

                           Port Louis, Mauritius
                Attn:      Company Secretary;

                Copy to:   Hutchison Telecommunications
                           International Limited
                           18/F Two Harbourfront
                           22 Tak Fung Street,
                           Hunghom, Kowloon,
                           Tel: (852) 2828 3222
                           Fax: (852) 2827 1382

                Attn.:     The Group Managing Director

                                       37

<PAGE>

        JKF:

                To:        the Registered Office address stated above

                Attn :     The Chairman

        Sterling Cellular Limited

                To:        the Registered Office address stated above

                Attn:      Company Secretary

                Copy to:

                           New Delhi- 1100___.

                Attn:      CEO

        Any notice sent by fax shall be deemed served on confirmation of good
        receipt in the case of a fax, and any notice served by registered post
        shall be deemed served 10 days after posting airmail, whether to an
        address in India or an address outside India. In proving the service of
        any notice it will be sufficient to prove, in the case of service by
        registered post, that such letter was properly stamped, registered,
        addressed and placed in the post.

19.     MISCELLANEOUS

19.1    LEGAL AND OTHER COSTS

        Each Party shall be responsible for the legal fees, costs and expenses
        incurred by it in the preparation, negotiation and execution of this
        Agreement.

19.2    COMPLETE AGREEMENT

        This Agreement, and any agreements to be entered into pursuant thereto
        embody all the terms and conditions agreed upon between the Parties and
        as from the Effective Date supersedes and cancels in all respects all
        previous correspondence, understandings, agreements and

                                       38

<PAGE>

        underlings (if any) between the Parties with respect to the subject
        matter hereof, whether such be written or oral.

19.3    UNENFORCEABLE PROVISIONS

        In the event that any provision contained in this Agreement or any part
        thereof shall for any reason be held to be invalid or unenforceable in
        any respect under the laws of India, such invalidity or unenforceability
        shall not affect any other provisions of this Agreement or the remaining
        parts thereof which shall then be construed as if such unenforceable
        provision or part thereof had never been contained herein.

19.4    NO PARTNERSHIP

        Nothing herein shall be taken to constitute or create a partnership
        among any of the Parties. No Party shall be deemed to be the agent of
        the other and none of the Parties shall have any authority to bind the
        other Party in any way except as provided in this Agreement.

19.5    AMENDMENT IN WRITING:

        This Agreement shall not be varied amended or supplemented except by a
        written instrument signed by or on behalf of all the Parties to be
        bound.

19.6    NO ASSIGNMENT

        Without prejudice to the provisions of Clause 10, this Agreement is
        personal to the Parties and is not capable of being assigned in whole or
        in part by any Party.

19.7    NO WAIVER

        Failure of any Party at any time to require performance by any other
        Party of any provision of this Agreement shall in no way affect the
        right of such Party to require performance of that or any other
        provision, and any waiver by such Party of any breach of this Agreement
        shall not be construed as a waiver by such Party of any continuing or
        succeeding breach of such provision a waiver of the provision itself or
        a waiver of any other right under this Agreement.

19.8    COUNTERPARTS

        This Agreement may be executed in several counterparts, and any single
        counterpart or set of counterparts, signed in either case by all

                                       39

<PAGE>

        of the Parties shall be deemed to be an original, and all taken together
        shall constitute one and the same instrument.

19.9    GOVERNING LAW

        This Agreement shall be governed by and construed in accordance with the
        laws of India.

IN WITNESS WHEREOF this Agreement was executed by the Parties on the day and
year first above written.

SIGNED BY
for and on behalf of
ESSAR TELEHOLDINGS LIMITED

in the presence of:

SIGNED BY
for and on behalf of
CGP.

in the presence of:

SIGNED BY
for and on behalf of
MOBILVEST

in the presence of:

SIGNED BY
for and on behalf of
CCII MAURITIUS INC

in the presence of:

                                       40

<PAGE>

SIGNED BY
for and on behalf of
PRIME METALS LIMITED

in the presence of:

SIGNED BY
for and on behalf of
EURO PACIFIC SECURITIES LIMITED

in the presence of:

SIGNED BY
for and on behalf of
JKF PRIVATE LIMITED

in the presence of:

SIGNED BY
for and on behalf of
STERLING CELLULAR LIMITED

in the presence of:

                                       41

<PAGE>

                             SCHEDULE A - FAIR VALUE

Where Fair Value falls to be determined under this Agreement in relation to any
Shares, it shall be the average of the two valuations provided by overseas
offices of Goldman Sachs and Morgan Stanley. The valuation by Goldman Sachs and
Morgan Stanley ("the Valuers") shall be done in accordance with the following
provisions of this Schedule:

1       The Valuers shall be jointly instructed by the Shareholder whose Shares
        are to be transferred ("Transferor") and the intending purchaser to
        value the Shares on the basis of an arm's length sale between a willing
        buyer with the funds to buy and a willing seller.

2.      The Valuers shall be directed to advise the Company and the relevant
        Parties of their determination of the fair value of the Shares within 45
        days or as soon as practicable thereafter.

3.      The decision of the Valuers shall be final and binding on the Parties
        and they shall be deemed to act as experts and not as arbitrators.

4.      The costs of the Valuers shall be borne equally by the Parties
        requesting the determination of the Fair Value.

5.      Each of the Transferor and the other such Parties shall be entitled to
        make such written submissions as the Valuers may accept and each of them
        and the Valuers shall have such access to the books and records of the
        Company as shall be reasonably required in connection with such
        determination.

                                       42

<PAGE>

                                   EXHIBIT - A

                        [Form of Articles of the Company]

                                       43<PAGE>

CONFIDENTIAL INFORMATION REDACTED                                  EXHIBIT 10.68

                             SHAREHOLDERS AGREEMENT

                                      DATED

                                  31st MAY 2002

                                     BETWEEN

                        INDUSIND TELECOM NETWORK LIMITED

                                       And

                        HAMKO FINANCIAL SERVICES LIMITED

                                       And

                         KOTAK MAHINDRA FINANCE LIMITED

                                       And

                              TRANS CRYSTAL LIMITED

                                       And

                         USHA MARTIN TELEMATICS LIMITED

                                       And

                                 FASCEL LIMITED

                                   ----------
                                  in respect of

                                 FASCEL LIMITED
                                   ----------

                                       1

<PAGE>

                                    CONTENTS

1.   DEFINITIONS AND INTERPRETATION............................................5

     1.1     DEFINITIONS.......................................................5
     1.2     INTERPRETATION....................................................8

2.   EFFECTIVE DATE............................................................9

3.   SHAREHOLDING PATTERN......................................................9

4.   MEETINGS OF SHAREHOLDERS.................................................10

     4.1     GENERAL MEETINGS.................................................10
     4.2     QUORUM...........................................................10

5.   DIRECTORS AND OFFICERS...................................................10

     5.1     DIRECTORS........................................................10
     5.2     NOMINATED DIRECTORS TO BE ELECTED................................11
     5.3     ALTERNATE DIRECTOR...............................................11
     5.4     DIRECTORS FEES...................................................12
     5.5     PLACE AND CALLING OF BOARD MEETINGS..............................12
     5.6     RESOLUTION BY CIRCULATION........................................12
     5.7     CHAIRMAN AND VICE CHAIRMAN.......................................13
     5.8     QUORUM FOR DIRECTORS MEETINGS....................................13
     5.9     ATTENDANCE BY CONSULTANTS, ADVISERS AND NON VOTING ATTENDEES.....13
     5.10    DECISIONS BY MAJORITY VOTE.......................................13
     5.11    SECRETARY........................................................14
     5.12    AUDITORS.........................................................14
     5.13    ACCOUNTING YEAR..................................................14

6.   MANAGEMENT...............................................................14

     6.1     BUSINESS TO BE MANAGED BY BOARD..................................14
     6.2     EXECUTIVES.......................................................14
     6.3     PERFORMANCE OF CEO...............................................15
     6.4     MAJORITY VOTES REQUIRED FOR CERTAIN BOARD MEETING................15
     6.5     RESERVED DECISIONS...............................................16

7.   BUSINESS PLAN & BUDGET...................................................17

     7.1     BUSINESS PLAN & BUDGET...........................................17
     7.2     BUDGET DETAILS...................................................17

8.   INITIAL PUBLIC OFFERING..................................................18

9.   FUNDING AND CAPITAL......................................................18

     9.1     FUNDING OF THE COMPANY...........................................18
     9.2     CAPITAL CONTRIBUTION.............................................18
     9.3     DEBT FINANCING...................................................19

10.  TRANSFER OF SHARES.......................................................20

     10.1    RESTRICTIONS ON TRANSFERS OF OWNERSHIP...........................20
     10.2    NO MORTGAGE OR PLEDGE OF SHARES..................................20
     10.3    PERMITTED TRANSFERS..............................................20
     10.4    DEFAULT..........................................................21
     10.5    SALE OF SHARES ON DEFAULT........................................21
     10.6    REPAYMENT OF SHAREHOLDER LOANS AND GUARANTEES....................23

                                        2

<PAGE>

     10.7    TITLE AND COMPLETION OF SHARE TRANSFERS..........................23
     10.8    RIGHTS OF FIRST REFUSAL..........................................24
     10.9    TAG ALONG........................................................27
     10.10   SECTORAL CAPS....................................................28
     10.11   DEED OF ADHERENCE................................................29

11.  FURTHER OBLIGATIONS OF THE PARTIES.......................................29

     11.1    FURTHER ASSURANCE................................................29
     11.2    DIRECTORS TO VOTE TO IMPLEMENT THIS AGREEMENT....................29
     11.3    ACCOUNTING AND REPORTING.........................................30
     11.4    EXCHANGE OF INFORMATION..........................................30
     11.5    FAIR DEALINGS....................................................30

12.  MAINTENANCE OF LICENCES, GOVERNMENT APPROVALS............................31

13.  TERM, TERMINATION AND DISPUTES...........................................32

     13.1    TERM.............................................................32
     13.2    RIGHTS OF PARTIES ON WINDING UP..................................32
     13.3    AGREEMENT TERMINATES ON WINDING UP...............................32

14.  ARBITRATION AND CONSULTATION.............................................32

     14.1    CONSULTATION.....................................................32

15.  CONFIDENTIALITY..........................................................34

     15.1    AGREEMENT CONFIDENTIAL...........................................34
     15.2    INJUNCTIVE RELIEF................................................34
     15.3    SURVIVAL.........................................................34

16.  AGREEMENT................................................................34

     16.1    AGREEMENT TO PREVAIL.............................................34
     16.2    AMENDMENT OF MEMORANDUM AND ARTICLES.............................35

17.  NOTICES..................................................................35

18.  MISCELLANEOUS............................................................36

     18.1    LEGAL AND OTHER COSTS............................................36
     18.2    COMPLETE AGREEMENT...............................................36
     18.3    UNENFORCEABLE PROVISIONS.........................................36
     18.4    NO PARTNERSHIP...................................................37
     18.5    AMENDMENT IN WRITING.............................................37
     18.6    NO ASSIGNMENT....................................................37
     18.7    NO WAIVER........................................................37
     18.8    COUNTERPARTS.....................................................37
     18.9    GOVERNING LAW....................................................37

DRAFT ARTICLES OF THE COMPANY.................................................41

                                        3

<PAGE>

                             SHAREHOLDERS AGREEMENT

THIS SHAREHOLDERS AGREEMENT (this "Agreement") is made the 31st day of May 2002;

BETWEEN:

A.      IndusInd Telecom Network Limited a company incorporated in India whose
        registered office is at Hinduja House 171 Dr Annie Besant Road, Worli,
        Mumbai 400018, ("Indusind");

B.      Hamko Financial Services Limited, a company incorporated under the
        Companies Act, 1956 whose registered office is at Bakhtawar, 1st Floor,
        229, Nariman Point, Mumbai 400 021, India ("KMIL");

C.      Kotak Mahindra Finance Limited, a company incorporated under the
        Companies Act, 1956 whose registered office is at Bakhtawar, 1st Floor,
        229, Nariman Point, Mumbai 400 021, India ("KMFL");

D.      Trans Crystal Limited, a company incorporated in Mauritius whose
        registered office is at 4th Floor, Les Cascades Building, Edith Cavell
        Street, Port Louis, Mauritius ("TCL");

E.      Usha Martin Telematics Limited, a company incorporated under the
        Companies Act, 1956 whose registered office is at 2A, Landmark, 228A,
        AJC Bose Road, Calcutta 700 020, India ("Telematics"); and

F.      Fascel Limited, a company incorporated in India whose registered office
        is at 6th Floor, Sakar-II, Ellisbridge, Ahmedabad 380 006, Gujarat (the
        "Company");

(Each of the aforesaid shall be referred to as "Party" and collectively as
"Parties")

WHEREAS:

A.      The Company is a public company limited by shares, which holds the
        license to provide Cellular Mobile Services in the circle of Gujarat by
        virtue of the license agreement no. 842-58(b)/95-UAS dated 11 January
        1996.

B.      KMFL and Fascel (among others) are parties to an existing joint venture
        agreement dated 29 March 1995. Since the date of that joint venture
        agreement the shareholding pattern has changed and

                                        4

<PAGE>

        Indusind, KMIL, Telematics and TCL have become shareholders of the
        Company and the Parties wish to enter into a new agreement in
        replacement thereof.

C.      The present shareholding of the Company is as follows:

        TCL:        Representing 49% of the issued share capital of the Company
        Telematics: Representing 10% of the issued share capital of the Company
        Indusind:   Representing 30% of the issued share capital of the Company
        KMFL:       Representing 7% of the issued share capital of the Company
        KMIL:       Representing 4% of the issued share capital of the Company

D.      Indusind, KMFL, KMIL and Telematics, being companies incorporated in
        India collectively hold 51% of the issued share capital of the Company,
        and the balance 49% of the issued share capital of the Company is held
        by TCL.

E.      This Agreement sets forth the arrangement between the parties for the
        shareholding and management of the Company on an ongoing basis and
        replaces the joint venture agreement dated 29 March 1995 and the Parties
        confirm that they waive all rights (if any), except for claims already
        lodged with the Company, under such joint venture agreement and the
        articles of association of the Company in place prior to the Effective
        Date

NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, receipt and
sufficiency of which is hereby acknowledged, the Parties hereto hereby agree as
follows:

1.      DEFINITIONS AND INTERPRETATION

1.1     DEFINITIONS

        In this Agreement unless the context otherwise requires or expressly
        provides, the following words shall have the following meanings
        respectively:

        "Accounting Year" shall have the meaning set forth in Clause 5.13
        hereof;

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        "Act" or "Companies Act" shall mean the Indian Companies Act, 1956
        and/or any statutory modifications amendments or re-enactments thereto
        from time to time;

        "Affiliate" means any entity, which controls, is controlled by, or is
        under the common control of any of the Parties or the majority
        shareholder of any of the Parties;

        The term 'Control' being used in the sense of power to elect, appoint or
        remove either singly by itself or together with other Affiliates a
        majority of its directors or to direct and control the management of a
        company, or to hold in excess of 40% of the voting interest. The term
        'Common Control' being used in the sense that the shareholder and the
        other person are both ultimately controlled by the same person. Common
        Control shall mean the predominant ultimate beneficial interest and/or
        effective control being exercised by the same person or a group of
        persons over third parties, any Party and/or any of its Affiliates. The
        term "majority shareholder" being used in the sense of power to elect,
        appoint, remove either singly by itself or together with other
        affiliates a majority of its directors or to direct and control the
        management of a company or to hold in excess of 50% of the voting
        interest of such company.

        "AGM" means an annual general meeting of the Company;

        "Agreement" means this Shareholders Agreement;

        "Alternate Directors" means Directors appointed pursuant to Clause 5.3;

        "Articles" means the articles of association of the Company for the time
        being;

        "Board" means the board of directors of the Company;

        "Business" means providing mobile telephone services as defined in the
        Licence.

        "Business Day" means a day on which scheduled banks are open for
        business in Gujarat and Maharashtra;

        "Chief Executive Officer" or "CEO" means the chief executive officer of
        the Company appointed pursuant to Clause 6.2;

        "Directors" mean the directors of the Company from time to time;

        "Effective Date" means the     day of April 2002;

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<PAGE>

        "EGM" means an extraordinary general meeting of the Company;

        "Fair Value" has the meaning set out in Schedule A hereto;

        "General Meeting" means an AGM or an EGM;

        "High Value Contracts" mean contracts with a value greater than US$5
        million entered into or to be entered into by the Company or any of its
        Subsidiaries;

        "IPO" means an initial public offering made in accordance with Clause 8;

        "Indusind Directors" means any Directors nominated by Indusind in
        accordance with Clause 5.1(a);

        "Indusind Shares" means the Shares held by Indusind;

        "KMFL Director" means the Director nominated by KMFL and jointly KMIL in
        accordance with Clause 5.1(a);

        "KMFL Shares" means the Shares held by KMFL;

        "KMIL Shares" means the Shares held by KMIL;

        "Licence" means the cellular mobile telephone licence Number
        TM842-58B/95-VAS issued by the Government of India to the Company for
        operations in Gujarat;

        "Memorandum" means the memorandum of association of the Company for the
        time being;

        "Original Director" shall have the meaning set forth in Clause 5.3
        hereof;

        "Party or Parties" shall mean the parties to this Agreement;

        "Reserved Decisions" shall have the meaning set forth in Clause 6.5
        hereof;

        "ROC" means the Registrar of Companies, Ahmedabad;

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

                                       7

<PAGE>

        "Securities" means any security instrument or right (whether vested,
        deferred or contingent) entitling or enabling the allottee or holder
        thereof to acquire shares of or a beneficial interest or voting rights
        in the Company, but shall not include securities issued to any financial
        institution in respect of the ordinary financing requirements of the
        Company;

        "Shareholder" means any of TCL, Telematics, Indusind, KMFL, KMIL or any
        direct holder of any issued Shares in the Company;

        "Shares" and "Shares in the Company" mean all classes of shares in the
        capital of the Company or any class thereof, as the case may be and
        includes any and all of the rights conferred on a person by the
        ownership of such shares;

        "Subsidiary" means with respect to any party, any other entity directly
        or indirectly fully owned, majority owned or controlled by such party.
        For the purposes of this definition the term "control" as applied to any
        person means the direct or indirect possession of the power to direct or
        cause the direction of the management of that person whether through
        ownership of voting securities or otherwise;

        "TCL Directors" means any Director nominated by TCL in accordance with
        Clause 5.1(a);

        "TCL Shares" means the Shares held by TCL;

        "Telematics Director" means the Director nominated by Telematics in
        accordance with Clause 5.1(a);

        "Telematics Shares" means the Shares held by Telematics..

1.2     INTERPRETATION

        (a)     Heading and bold typeface are only for convenience and shall be
                ignored for the purpose of interpretation;

        (b)     Unless the context of this Agreement otherwise requires;

                (i)     words using the singular number also include the plural
                        or singular number, respectively;

                (ii)    the terms "hereof, "hereto" and derivative or similar
                        words refer to this entire Agreement or specified
                        Clauses of this Agreement, as the case may be;

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<PAGE>

                (iii)   the term "Clause" refers to the specified clause of this
                        Agreement;

                (iv)    reference to any legislation or law or to any provision
                        thereof shall include references to any such law as it
                        may, after the date hereof, from time to time, be
                        amended, supplemented or re-enacted, and any reference
                        to statutory provision shall include any subordinate
                        legislation made from time to time under that provision;

                (v)     reference to the word "include" shall be construed
                        without limitation; and

                (vi)    The Recitals, Schedules and Exhibits hereto shall
                        constitute an integral part of this Agreement.

2.      EFFECTIVE DATE

2.1     This Agreement shall take effect on the Effective Date.

2.2     On the Effective Date, the Parties shall ensure that the Articles, in
        the form and manner attached hereto as Schedule B are adopted at a
        General Meeting, and the resolution adopting the same shall be filed
        with the ROC within 7 days of the Effective Date. The Company shall take
        all steps including issue of necessary notices in accordance with the
        Companies Act to the shareholders of the Company and ensure that an EGM
        is convened on the Effective Date and the requisite resolutions are
        passed.

3.      SHAREHOLDING PATTERN

        Subject to the provisions of this Agreement, the issued and paid-up
        share capital of the Company is held by the Parties, directly in the
        following manner:

        TCL:                          49 %
        KMFL:                          7 %
        INDUSIND:                     30 %
        KMIL:                          4 %
        Telematics:                   10 %

                                       9

<PAGE>

4.      MEETINGS OF SHAREHOLDERS

4.1     GENERAL MEETINGS

        An AGM shall be held each calendar year within six (6) months following
        the end of the previous Accounting Year of the Company. The Board shall
        provide the Company's previous Accounting Year's audited financial
        statements to all Shareholders at least 15 days before the AGM is held
        to approve and adopt the audited financial statements. All other
        Shareholders' meetings, other than the AGM shall be EGMs.

4.2     QUORUM

        The quorum for an AGM or EGM with respect to any agenda shall be at
        least five (5) Shareholders, including at least TCL, Telematics and
        Indusind and one of KMFL or KMIL, present in person or through a duly
        authorised representative, holding more than sixty percent (60%) of the
        total issued and paid-up equity share capital of the Company. If the
        proposed AGM or EGM with respect to any quorum is not validly
        constituted as required by this Clause 4.2, or if such a quorum is not
        maintained throughout such meeting, then the meeting shall be adjourned
        for a period of 7 days, with notice of such adjournment to be provided
        to the Shareholders within three (3) days of such adjournment. At the
        meeting held pursuant to the adjournment, the Shareholder(s) present
        shall constitute the quorum for the meeting. A quorum must be present at
        the beginning and throughout the meeting.

5.      DIRECTORS AND OFFICERS

5.1     DIRECTORS

        (a)     Save and except as provided in this Agreement, the Board shall
                comprise Nine Directors. Four Directors (the "TCL Directors")
                shall be nominated by TCL, one Director (the "KMFL Director")
                shall be nominated by KMFL and KMIL jointly, three Directors
                (the "Indusind Directors") shall be nominated by Indusind and
                one Director (the "Telematics Director") shall be nominated by
                Telematics. The Shareholder or Shareholders nominating a
                Director may by notice in writing to the Company require the
                removal of such Director and nominate another person as a
                Director to act in his/her place. The Parties agree that nothing
                contained in section 284 of the Act applies in respect of the
                appointment of Directors.

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<PAGE>

        (b)     If the holding, directly or indirectly, of any Shareholder (or,
                in the case of KMFL and KMIL, their joint holding) falls below
                7% of the issued and paid-up equity share capital of the
                Company, then that Shareholder shall cease to have the right of
                nomination under this Clause 5.1, in respect of any Director and
                shall procure such Director to, and such Director shall, resign
                forthwith.

        (c)     Three Directors shall be non-retiring Directors, one each of
                whom shall be nominated by TCL, Indusind and in the case of KMFL
                and KMIL jointly, provided that if the nominating Party ceases
                to have the right to nominate a Director pursuant to Clause
                5.1(b) such Director shall cease to be non-retiring and shall
                immediately resign from the Board. The nominating Party
                undertakes to procure the resignation of such Director nominated
                by it.

        (d)     The number of Directors may be extended in the event that any
                financial institution being a creditor to the Company should
                choose to nominate a Director as their representative on the
                Board and the Board agrees to accept such nomination.

5.2     NOMINATED DIRECTORS TO BE ELECTED

        Subject to the provisions of the Act, each of the Parties (on behalf of
        itself) undertake to procure that the persons nominated in accordance
        with Clause 5.1 (except Clause 5.1(d)) shall be elected or re-elected as
        Directors or appointed to the Board as the case may be. Furthermore,
        upon receipt of a written request from TCL, Indusind, KMFL and KMIL
        jointly, or Telematics (as the case may be) to remove or not to re-elect
        any Director nominated by them, the Parties shall procure the removal or
        shall not re-elect such Director as so requested.

5.3     ALTERNATE DIRECTOR

        In the event that a Director (an "Original Director") is away for a
        continuous period of not less than three (3) months from the state in
        which the meetings of the Board are ordinarily held, the Board shall
        appoint another Director (an "Alternate Director") for and in place of
        the Original Director. The Board shall endeavour to appoint only such
        Alternate Director nominated by the Shareholder that nominated the
        Original Director. The Alternate Director shall vacate office if and
        when the Original Director returns to the state in which meetings of the
        Board are ordinarily held. Upon the appointment of the Alternate
        Director, the Company shall ensure compliance with the provisions of

                                       11

<PAGE>

        the Act, including by filing necessary forms with the ROC. The Alternate
        Director shall be entitled to receive notice of all meetings and to
        attend and vote at such meetings in place of the Original Director and
        generally to perform all functions of the Original Director in his
        absence.

5.4     DIRECTORS FEES

        Subject to the provisions of the Act, the Directors shall not be paid
        any fees for acting in their capacity as Directors. All Directors may,
        subject to applicable restrictions if any under law, be remunerated
        separately for the performance of special or executive duties approved
        from time to time by the Board. All Directors will be entitled to be
        paid or reimbursed their reasonable travelling, accommodation and
        subsistence expenses incurred in attending meetings (Board/ general/ any
        other committee meeting) and/or in the discharge of their duties as
        Directors.

5.5     PLACE AND CALLING OF BOARD MEETINGS

        Board meetings shall be held at such places, in or outside of India as
        the Board may determine and failing any such determination at the
        Company's registered office in Ahmedabad. Board meetings shall be held
        at least once every three months and at least four times in each year.
        Any Director may requisition a meeting of the Board. Unless the
        requirement of notice is waived by all Directors, seven days written
        notice (or such shorter period as all the Directors may agree) of Board
        meetings shall be given to all Directors and their Alternate Directors.
        Each notice of a meeting of the Board shall contain inter alia, an
        agenda specifying in reasonable detail the matters to be discussed at
        the relevant meeting and shall be accompanied by all necessary written
        information. Where a Board meeting is adjourned, it shall be reconvened
        on a day seven days from the original date at the same place and time
        unless the Board decides otherwise. Notices and minutes of Board
        meetings shall be given to each Director at their last known address,
        whether resident in India or abroad.

5.6     RESOLUTION BY CIRCULATION

        Subject to the provisions of the Act, resolutions of the Board may be
        passed by circulation, if the resolution has been circulated in draft,
        together with necessary papers, if any, to all the Directors, then in
        India or outside India, and has been signed by a majority of the
        Directors, provided that in respect of matters contained in Clause 6.4
        hereof, the resolution should be signed by at least one TCL Director,

                                       12

<PAGE>

        one Indusind Director and the KMFL Director. Such resolutions may be
        signed by the Directors as single documents or in counterparts.

5.7     CHAIRMAN AND VICE CHAIRMAN

        The Chairman of the Board shall be nominated by Indusind in consultation
        with TCL from amongst the Indusind Directors. The Vice-Chairman of the
        Board shall be nominated by TCL from amongst the TCL Directors. Each of
        the Shareholders (on behalf of itself) shall ensure (including by
        exercise of their respective voting rights) the appointment of the
        Indusind nominee as the Chairman and the TCL nominee as the
        Vice-Chairman. The Chairman of the Board shall preside as chairman of
        each meeting of the Board at which he is present and in his absence the
        Vice Chairman shall preside as Chairman of the meeting. In the absence
        of the Chairman and the Vice-Chairman, the Directors attending the
        meeting shall elect a Director from amongst themselves to chair the
        meeting. In the event of any equality of votes, the chairman of the
        meeting shall not have a second or casting vote. , If either Indusind or
        TCL ceases to hold at least 20% of the issued and paid up share capital
        of the Company it shall cease to have the right to nominate the Chairman
        or Vice-Chairman, as the case may be.

5.8     QUORUM FOR DIRECTORS MEETINGS

        The quorum for meetings of the Board shall be 5 (five) Directors
        consisting of at least one TCL Director, one Indusind Director and the
        KMFL Director, excluding interested Directors in respect of any
        particular item. If a quorum is not present, the meeting shall be
        adjourned for seven days at the same place and time and if no quorum is
        then present the Director(s) present shall form a quorum.

5.9     ATTENDANCE BY CONSULTANTS, ADVISERS AND NON VOTING ATTENDEES

        If the Board so authorises or requests, auditors, consultants, and
        advisers of the Company (in addition to those who also act for any one
        or more of the Directors in a personal capacity) and employees of the
        Company shall be permitted to attend and speak at meetings of the Board,
        but not to vote.

5.10    DECISIONS BY MAJORITY VOTE

        Subject to Clause 6.4 hereof and except as otherwise provided in the
        Act, all decisions of the Board shall be taken by a majority of the
        Directors present and voting at a meeting of the Board, or as the case
        may be, all the Directors voting by way of a circular resolution.

                                       13

<PAGE>

5.11    SECRETARY

        The secretary of the Company shall be such person as shall from time to
        time be determined by the Board.

5.12    AUDITORS

        The auditors of the Company shall be PricewaterhouseCoopers with respect
        to the next Accounting Year or, alternatively, such other international
        and reputable "big 5" firm of accountants as shall from time to time be
        recommended by the Board.

5.13    ACCOUNTING YEAR

        The accounting year of the Company (the "Accounting Year") shall end on
        31st March each year or such other date as the Board shall agree and the
        Company in general meeting shall resolve.

6.      MANAGEMENT

6.1     BUSINESS TO BE MANAGED BY BOARD

        The Board shall be responsible for the management of the business of the
        Company and determining the overall policies and objectives of the
        Company. The Board shall delegate responsibility for managing the day to
        day operations of the Company to either the CEO or the Executive
        Committee on such terms as the Board deems desirable and subject always
        to the terms of this Agreement.

6.2     EXECUTIVES

        In addition to the Directors appointed under Clause 5.1, TCL shall
        nominate and the Board shall appoint a Chief Executive Officer, a Chief
        Financial Officer and a Chief Operating Officer of the Company, provided
        that:

        (a)     any candidate for the post shall have the requisite technical
                qualifications and provided that prior to such nomination TCL
                shall consult Indusind and KMFL; and

        (b)     any appointment thereof shall be subject to Board approval.

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<PAGE>

6.3     PERFORMANCE OF CEO

        The CEO shall be responsible for the day to day operations of the
        Company subject to the overall control of the Board and shall be deemed
        to be the Manager of the Company as defined in the Act. The Parties
        recognise that the CEO will manage the business and affairs of the
        Company and that his performance shall be the subject matter of a
        consultative process and joint review of the Board.

6.4     MAJORITY VOTES REQUIRED FOR CERTAIN BOARD MEETING

        Notwithstanding any other provision in this Agreement, the Shareholders
        agree that the following matters shall not be implemented in respect of
        the Company without the passing of a resolution of the Directors present
        and voting, on the issue at a Board Meeting of the Company, which
        resolution is approved by at least one TCL Director, one Indusind
        Director and the KMFL Director (for so long as the Shareholders have the
        right to nominate a Director pursuant to Clause 5.1(b)), excluding
        interested Directors who are prohibited at law to vote thereon:

        (a)     approval of the five year and annual business plan of the
                Company where such business plan is not within guidelines agreed
                between the Parties;

        (b)     any single investment in excess of US$5 million in any other
                Companies, including by way of merger and/or acquisition or
                consolidation of the Company or its business with another
                company or acquisition of the substantial part of the business
                or assets of another company;

        (c)     entry into a new business not carried on by the Company as at
                the Effective Date;

        (d)     sale of a substantial part of the business or assets of the
                Company;

        (e)     transactions, other than in the ordinary course of business,
                between the Company and any Shareholder or its Affiliate;

        (f)     execution or material alteration of High Value Contracts which
                have not been contemplated in the business plan or budget;

        (g)     execution or material alteration of any agreement between the
                Company and any Shareholder or its Affiliate other than those

                                       15

<PAGE>

                entered into on an arms length basis in the ordinary course of
                business of the Company;

        (h)     any issue, other than on a pro-rata basis at not more than Fair
                Value, of Shares or Securities or any cash call other than on an
                equal basis;

        (i)     incorporation by the Company of a Subsidiary for purposes other
                than carrying out the Business;

        (j)     any investments by a Subsidiary in a joint venture or creating a
                further Subsidiary or any dilution of the economic interest in a
                Subsidiary by fresh investment or otherwise;

        (k)     liquidation, dissolution or winding up of the Company;

        (l)     amendment to the Memorandum or Articles;

        (m)     subject always to sub-clause (h) above, any change in the
                authorised or issued capital of the Company or the issue of any
                additional Shares or Securities;

        (n)     offer of any Shares by the Company to the public and the listing
                thereof on a stock exchange;

        (o)     any change in or modification of the rights which any class of
                Shares confers on the holders thereof; and

        (p)     relinquishing the Licence or applying for any new licence for
                providing telecommunication services.

6.5     RESERVED DECISIONS

        Decisions of the Board under sub-clauses (a), (f), (m)(if not a pro rata
        issue and not an issue falling under Clause 6.4(h)), and (n) of Clause
        6.4 shall be referred to as "Reserved Decisions". In the event of the
        Board being unable to agree on any Reserved Decision within seven (7)
        days of the Board meeting, the following procedures shall apply:

        (a)     A summary of the facts surrounding the disputed Reserved
                Decision shall be sent by the Company to one of the Directors
                nominated by each of the Shareholders, or in the case of KMFL
                and KMIL, the KMFL Director ("Concerned Directors");

        (b)     Within seven (7) days of the receipt of such summary, the
                Concerned Directors shall meet and discuss the disputed

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<PAGE>

                Reserved Decision and shall take all steps to reach a consensus
                acceptable to the Shareholders;

        If the Concerned Directors are unable to reach a consensus in the manner
        set forth in sub-clause (b) above within a further period of fourteen
        (14) days, then the matter shall be referred back to the Board where a
        simple majority shall be all that is required to decide the matter
        provided that if the Reserved Decision involves a decision of the Board
        falling under Clause 6.4(a) and the Concerned Directors are not able to
        resolve the issue within 7 days of a board meeting at which such matter
        is considered then the relevant business plan shall be forwarded to the
        Company's auditors, who shall review such business plan. The auditors
        sole task shall be to determine whether, in their opinion, the said
        business plan is reasonable or unreasonable, taking into account the
        prevailing commercial factors and market conditions. In the event that
        the auditors determine the business plan is reasonable then the matter
        shall be referred back to the Board where a simple majority shall be all
        that is required to approve such business plan. Any business plan
        determined by the auditors to be unreasonable shall be amended and
        resubmitted to the Board in accordance with the procedures set out in
        Clauses 6.4 and 6.5.

7.      BUSINESS PLAN & BUDGET

7.1     BUSINESS PLAN & Budget

        The relevant officers of the Company shall prepare at least two months
        prior to the close of each Accounting Year and the Board shall review,
        amend and, if deemed appropriate, approve prior to the close of such
        Accounting Year a business plan and a budget comprised of a balance
        sheet, profit and loss statement, cash flow statement, capital
        expenditure statement and funding requirements schedule covering the
        five year period commencing at the close of such Accounting Year. The
        Shareholders shall determine broad guidelines for drawing up the
        business plan to include having a best in class network and customer
        service platform, best branding, sufficient cash requirement to tackle
        competition and with an initial focus on voice telephony.

7.2     BUDGET DETAILS

        The budget shall be in sufficient detail to provide the Directors with
        information sufficient to facilitate their approval.

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8.      [***]

9.      FUNDING AND CAPITAL

9.1     FUNDING OF THE COMPANY

        Unless otherwise determined by the Board, the funds required by the
        Company shall be provided first, by the Company's cash flow, secondly,
        by external borrowings in accordance with Clause 9.3 and lastly, by the
        issue of additional share capital or loans from the Shareholders, pro
        rata to their shareholding in the Company. For the avoidance of doubt,
        failure by a Shareholder to provide shareholder loans will not
        constitute a default under Clause 10.4.The additional share capital
        shall either be equity or preference. The debt-equity ratio shall be
        determined by the Board from time to time.

9.2     CAPITAL CONTRIBUTION

        (a)     Based on the funding requirements of the Company, the CEO shall
                determine when equity capital calls are to be made, and shall
                make a recommendation to the Board for making equity capital
                calls. Subject to clause 6.4, the Board may, from time to time,
                pass resolutions calling for equity capital contributions to the
                Company (each such contribution a "Capital Contribution") from
                the Shareholders which will result in the Company receiving the
                amount of cash determined by the Board to be necessary to fund
                the business needs of the Company to support growth requirements
                (each such resolution, a "Cash Call"). Each Capital Contribution
                pursuant to this Clause 9.2 shall be made by the Shareholders in
                the form of a subscription of Shares. The Shareholders shall
                make such Capital Contributions in proportion to their
                respective holdings of the total issued and paid-up share
                capital of the Company at the time of the applicable Cash Call.
                Each Capital Contribution shall be payable by the Shareholders
                in Rupees, on the date specified in the applicable Cash Call, by
                wire transfer to the account of the Company specified in such
                Cash Call.

        (b)     If any Shareholder does not pay or procure payment of its
                ratable portion of any Capital Contribution required to be made
                pursuant to sub-clause (a) above within thirty (30) days from
                the date of the applicable Cash Call (or such other extended
                period as may be required to obtain necessary regulatory
                approvals), each of the other Shareholders if it has paid its
                ratable portion of such Capital Contribution, has the option to
                pay or ensure that its designee (acceptable to the other
                Shareholders, who shall

                                       18

<PAGE>

                not unreasonably withhold their acceptance) pays a pro-rata
                share of such non-paying Shareholder's portion in the form of a
                subscription of Shares, thereby increasing its respective
                holdings of the total issued and paid-up share capital of the
                Company, and decreasing the percentage holdings of the
                non-paying Shareholder's holding in the total issued and paid-up
                capital of the Company. The valuation for the issue of the
                Shares pursuant to this Clause 9.2 shall be as agreed to between
                the Parties, or if the Parties cannot reach an agreement within
                14 days, Fair Value determined in the manner set forth in
                Schedule A.

9.3     DEBT FINANCING

        In the event that the financing is done through external borrowing by
        the Company, the Parties shall take all reasonable steps to ensure that
        the debt is subject to the following conditions:

        (a)     that the debt is without recourse to the Shareholders; or

        (b)     where the lenders do not accept a non recourse loan or where the
                terms of the non recourse loan are not on reasonable commercial
                terms acceptable to the Board and therefore the debt involves
                recourse to the Shareholders, the Shareholders shall provide
                corporate guarantees or procure acceptable bank or third party
                guarantees for their respective Shares on a pro rata basis and
                several basis (but not joint and several basis).

        (c)     In the event that corporate guarantees are required and one or
                more of the Shareholders does not wish to provide such guarantee
                then any of the other Shareholders may, in its absolute
                discretion, elect to provide or procure the non participating
                Shareholder's proportion of the guarantee and the non
                participating Shareholder shall immediately pay to the
                Shareholder providing or procuring such guarantee a fee of 2.0%
                per annum of the amount of the guarantee that the non
                participating Shareholder would have been obliged to provide.
                For the avoidance of doubt, failure by any Shareholder to
                provide any guarantee will not constitute a default under Clause
                10.4.

9.4     DEBT EQUITY RATIO

        It is the Parties intention that for so long as the debt equity ratio of
        the Company does not exceed 2:1 then the Board shall not make a Cash
        Call or seek recourse lending. However, if due to adverse market

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<PAGE>

        conditions or if the terms of non-recourse funding are unreasonable in
        the opinion of the Board then the Board may call for Cash Calls in
        accordance with Clause 9.2 or funding with recourse to the Shareholders
        in accordance with Clause 9.3, even in situations where the debt equity
        ratio does not exceed 2:1.

10.     TRANSFER OF SHARES

10.1    RESTRICTIONS ON TRANSFERS OF OWNERSHIP

        No rights conferred by the ownership of a Share may be transferred
        separately from legal title to the Share itself and no Share can be
        transferred other than pursuant to the provisions of this Agreement. Any
        transfer of Shares not made in accordance with the provisions of this
        Agreement shall be null and void and shall not be registered by the
        Company.

10.2    NO MORTGAGE OR PLEDGE OF SHARES

        Each of the Shareholders, hereby undertakes with the others that during
        the continuance of this Agreement it shall not, without the prior
        written consent of the other Shareholders (which may be given in their
        sole discretion and subject to such terms and conditions as they may
        deem fit):

        (a)     mortgage, charge, pledge or otherwise encumber the whole or any
                part of its Shares; or

        (b)     assign or otherwise purport to deal with the beneficial interest
                therein or any right in relation thereto separately from the
                legal interest,
        provided that this clause shall not apply in respect of any mortgage,
        charge or pledge of Shares by the Shareholders, or any of them, in
        favour of any financial institution or bank in support of advances or
        financial accommodation made available to the Company.

10.3    PERMITTED TRANSFERS

        Subject to Clause 10.11 hereof, any Shareholder may transfer its Shares
        to an Affiliate thereof, so long as the following conditions are
        satisfied:

        (a)     a notice is given to the other Shareholders specifying the name
                of the transferee, the details based on which the transferee is
                to

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<PAGE>

                be considered an Affiliate and the number of Shares to be
                transferred to the transferee;

        (b)     the transferee has executed an instrument agreeing to be bound
                by the terms of this Agreement;

        (c)     the relevant Shareholder and the transferee have undertaken that
                in the event that the transferee ceases to be an Affiliate it
                shall transfer the transferred Shares back to that Shareholder.

10.4    DEFAULT

        A Shareholder shall be in default for the purposes of Clause 10.5 if:

        (a)     it breaches Clause 10.1;

        (b)     it breaches Clause 10.2;

        (c)     it commits a material breach of any other provision of this
                Agreement and, in respect of a breach which is capable of being
                remedied, fails to remedy such breach within 30 days of being
                required in writing to do so by any other Shareholder;

        (d)     it becomes bankrupt or insolvent or stops payment to or makes an
                arrangement with its creditors generally, or any resolution is
                passed for its winding up or bankruptcy (other than a winding up
                for the purpose of reconstruction or amalgamation) or any
                petition or proceedings to winding up that Shareholder has been
                admitted by a competent court of law (and such petition or
                proceeding is not disputed in good faith) or it ceases to exist
                or there is an attachment of or the levy of execution on a
                substantial part of the assets or business of that Shareholder
                which is not remedied within 120 days, or an encumbrancer takes
                possession of or a receiver, trustee, administrator or similar
                officer is appointed over all or substantial part of its assets
                or business; or

        (e)     it breaches Clause 15.1

10.5    SALE OF SHARES ON DEFAULT

        If any Shareholder is in default within the meaning of Clause 10.4 (the
        "Defaulting Party") the other Shareholders or any of them (not including
        the Company or any Affiliate of the Defaulting Party) (the
        "Non-Defaulting Parties") may within 30 days of becoming aware of such
        default give the Defaulting Party and the other Shareholders,

                                       21

<PAGE>

        written notice of the default ("Default Notice") and require the Company
        to arrange for the determination of Fair Value. Within 30 days of the
        determination of Fair Value the Non-Defaulting Parties may give written
        notice ("Disposal Notice") to the Defaulting Party to transfer all of
        its Shares (the "Disposal Shares") to the Non-Defaulting Parties or
        their designees (acceptable to the Non-Defaulting Parties) at 10% less
        than the Fair Value, and the Disposal Shares shall then be promptly
        transferred to the Non-Defaulting Parties or their designees. In the
        event of more than one Disposal Notice being served, any transfer of
        Shares thereby resulting shall be pro-rata to the existing respective
        shareholdings in the Company of the Non-Defaulting Parties that have
        served Disposal Notices. In order to facilitate such sale and transfer
        the following shall apply:

        (a)     14 days after the receipt by the Defaulting Party of the
                Disposal Notice, the Directors appointed by the Non-Defaulting
                Parties or their Affiliates (the "Non-Defaulting Directors")
                shall be constituted the lawful attorneies of the registered
                owner of the Disposal Shares, for the sale and transfer of the
                Disposal Shares free from encumbrances to the Non Defaulting
                Party or Parties or their designees.

        (b)     Within 7 days after the expiry of the 14 day period referred to
                in Clause 10.5 (a) above, the Non-Defaulting Directors shall
                execute in the name and on behalf of the registered owners
                thereof, and deliver to the Non-Defaulting Parties, or their
                designees, a transfer of the Disposal Shares to the
                Non-Defaulting Parties or their designees in exchange for
                cashiers or bank cheques in favour of the registered owners of
                the Disposal Shares at 10% less than the Fair Value. The
                Non-Defaulting Directors shall hold the cheques to the order of
                the registered owners of the Disposal Shares, once such Shares
                have been registered in the name of the Non-Defaulting Parties
                or its designees.

        (c)     Notwithstanding the provisions of Clauses 5.0, 5.10 and 6.4, the
                Directors nominated by the Non-Defaulting Parties shall
                constitute a quorum for passing a resolution to register the
                transfer of the Disposal Shares to the transferee.

        (d)     In the event that Government and regulatory approvals are needed
                for the transfer of the Disposal Shares to any of the
                Non-Defaulting Parties or their designees, the time for transfer
                and payment for such Shares shall be extended while such
                approval is being actively sought by the relevant Non-Defaulting
                Party or its designee.

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<PAGE>

        (e)     In the event that a Non-Defaulting Party or one of its
                Affiliates is unable to take up any of the Disposal Shares due
                to Indian law or foreign investment regulations, such
                Non-Defaulting Party shall be entitled to nominate any third
                party acceptable to all other Non-Defaulting Parties and under
                Indian law to acquire such Disposal Shares.

        (f)     The Defaulting Party agrees not to take any actions to prevent
                or delay the transfer and registration of the Disposal Shares.

        The rights of the Non Defaulting Parties under this Clause 10.5 shall be
        in addition to and without prejudice to their rights to claim damages
        and other remedies against the Defaulting Party.

10.6    REPAYMENT OF SHAREHOLDER LOANS AND GUARANTEES

        In the event of any transfer of Shares consequent on a default and
        unless otherwise agreed:

        (a)     any shareholder loans advanced by the Defaulting Party or any of
                its Affiliates shall, notwithstanding the terms of such loan, be
                repaid at the Company's option, either:

                (i)     by the Company at the earlier of the original repayment
                        date or the first anniversary of the date of such
                        transfer; or

                (ii)    by an assignment or novation of all or part of such
                        loan(s) to the Non-Defaulting Parties or their designees
                        at the face value plus the accumulated interest on the
                        loans or such part of the loan being transferred,
                        assigned or novated. Any interest to be paid by the
                        Company in respect of such loan(s) shall continue to
                        accrue until payment shall be made in full but not
                        otherwise;

        (b)     the Non Defaulting Parties shall use reasonable endeavours to
                procure the release of any shareholder guarantee given by the
                Defaulting Party or any of its Affiliates for the benefit of the
                Company.

10.7    TITLE AND COMPLETION OF SHARE TRANSFERS

        Subject to the provisions of clause 10.5, all transfers of Shares shall
        be effected by the transferor selling as beneficial and legal owner free
        and clear of all liens, charges and encumbrances and together with all
        rights attaching thereto, and upon completion, the transferor shall

                                       23

<PAGE>

        deliver to the transferee, forms of transfer in respect of the relevant
        Shares duly executed by the transferor in favour of the transferee
        together with the relevant share certificates and shall vote on the
        Board to register the transferee as the owner of the Shares against
        payment by the transferee of the price due in respect thereof. Subject
        to this Clause 10.7 the Parties shall thereupon do or procure to be done
        all such acts and things as may be necessary to give full effect to the
        transfer and the registration thereof.

10.8    RIGHTS OF FIRST REFUSAL

        (a)     Should any Shareholder ("Transferring Shareholder") wish to
                transfer any Shares (except for the transfer of Shares permitted
                in Clause 10.3), it shall offer them to the other Shareholders,
                in proportion to their respective shareholdings in the Company,
                by serving a transfer notice ("Transfer Notice") on them stating
                the number of Shares ("Offer Shares") which it proposes to sell
                and whether any shareholder loans or part thereof are to be sold
                as condition of the sale of the Offer Shares together with:

                (i)     the price and other terms, if any, at which it is
                        willing to sell the Offer Shares and shareholder loans,
                        such price not being higher or the terms more onerous
                        than those to any bona fide third person offering to buy
                        the Offer Shares or, in the case of shareholder loans
                        such price being not higher than the face value of such
                        loans plus the accumulated interest thereon, if any;

                (ii)    if relevant, such details of the terms of any bona fide
                        offer it has received to purchase the Offer Shares and
                        the shareholder loans, if any, as may be reasonably
                        necessary for the other Shareholders to determine the
                        price and other terms of such offer;

                (iii)   if relevant, the identity of the person making the offer
                        ("Prospective Purchaser") and of its ultimate parent
                        company and beneficial owner and/ or the true buyer (if
                        known to be different).

        (b)     Within 21 days after the Transfer Notice is given the other
                Shareholders may:

                (i)     if the Transfer Notice is accompanied by details of the
                        Prospective Purchaser, require the Transferring
                        Shareholder to produce to it such further evidence as it

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<PAGE>

                        may reasonably require to enable it to establish the
                        bona fides of the offer by the Prospective Purchaser;

                (ii)    if the Transfer Notice is not accompanied by details of
                        the Prospective Purchaser , serve on the Transferring
                        Shareholder and the Company a notice requiring the Fair
                        Value of the Offer Shares to be determined ("Valuation
                        Notice");

        (c)     Each of the other Shareholders shall be entitled within a period
                of 21 days after any Transfer Notice is given or within a period
                of 7 days after the date of provision to them of such further
                evidence or information as may be requested under Clause 10.8
                (b)(i) as the case may be (whichever is the later), to serve a
                purchase notice ("Purchase Notice") on the Transferring
                Shareholder stating:

                (i)     that it wishes to purchase all or part of the Offer
                        Shares and the shareholder loans if any at the price and
                        on the other terms stated in the Transfer Notice; or

                (ii)    that it declines the Offer Shares.

        (d)     Subject to clauses 10.8 (e) and (f), if the Transferring
                Shareholder has not received a Purchase Notice (or Notices)
                under the terms of Clause 10.8 (c) (i) in respect of the total
                number of Offer Shares or having received the same has not
                within 30 days thereafter received the price for the Offer
                Shares in return for a transfer complying with Clause 10.7, it
                shall be entitled to sell all, but not less than all, of the
                Offer Shares not so purchased to the Prospective Purchaser if
                there is any, otherwise to any person at not less than the price
                and on the terms no less onerous than those set out in the
                Transfer Notice provided that if such sale is not completed
                within 90 days after the expiry of the relevant time period
                referred to in Clause 10.8(c), subject to any extension thereof
                under Clause 10.10(c) hereof, the right to sell the Offer Shares
                to the Prospective Purchaser or any other person shall lapse.

        (e)     In the event that a Valuation Notice is served under the
                provisions of Clause 10.8 (b) (ii) then, the provisions of
                Schedule A shall apply. On determination of the Fair Value in
                accordance with such schedule, the Company shall forthwith upon
                receipt of the valuers' (as defined in Schedule A below)
                determination notify the Transferring Shareholder and the other
                Shareholders thereof and then each of the other Shareholders

                                       25

<PAGE>

                shall have the option within 14 days of the Company's notice
                under this Clause 10.8(e) to serve a purchase notice ("Purchase
                Notice") on the Transferring Shareholder stating the Offer
                Shares and shareholder loans (if any) which it wishes to
                purchase.

        (f)     In respect of Clause 10.8(e) hereof, if the Transferring
                Shareholder has not received Purchase Notice (or Notices) in
                respect of the total number of Offer Shares or having received
                the same has not within 30 days thereafter received the total
                price for the Offer Shares in return for a transfer complying
                with Clause 10.7, the Transferring Shareholder shall be entitled
                to sell all but not part of the Offer Shares not so purchased to
                any person at a price not less than that represented by the Fair
                Value, provided that if such sale is not completed within 90
                days after the expiry of the relevant time period referred to in
                Clause 10.8(e) subject to any extension thereof under Clause
                10.10(c) the right to sell the Offer Shares shall lapse.

        (g)     (i)     In the event of there being more than one Purchase
                        Notice served on the Transferring Shareholder, the
                        Parties serving such Purchase Notice shall be entitled
                        to purchase the Offer Shares in proportion to the size
                        of their respective shareholdings in the Company. If
                        more than one Purchase Notice is served on the
                        Transferring Shareholder, the Transferring Shareholder
                        shall so inform the Company which shall allocate the
                        Offer Shares to such Parties who have served a Purchase
                        Notice(s), in proportion to their shareholdings in the
                        Company. The Company shall forthwith give notice of such
                        allocations to the Transferring Shareholder and such
                        Parties, and the Transferring Shareholder shall be bound
                        upon payment to transfer the Offer Shares so allocated
                        to such Parties; provided that the Transferring
                        Shareholder shall not be bound to transfer the Offer
                        Shares to any purchaser unless it has received payment
                        in full for all such Offer Shares.

                (ii)    Provided that nothing in this Clause 10.8 shall apply in
                        respect of an IPO, including any restructuring required
                        prior to an IPO or by virtue of any governmental
                        guidelines or requirements.

        (h)     In the event that any of the Offer Shares are not purchased and
                the Transferring Shareholder has received at least one (1)
                Purchase Notice then those Offer Shares not purchased shall be
                offered to the Shareholder(s) that have served a Purchase

                                       26

<PAGE>

                Notice in proportion to their shareholding in the Company and
                such Shareholders shall have a further 7 days within which to
                issue a Purchase Notice in respect of those Offer Shares. This
                process shall be repeated until either no Purchase Notices are
                issued or all the Offer Shares are purchased by the one or more
                of the existing Shareholders. Only then is the Transferring
                Shareholder free to sell the Offer Shares not so purchased to a
                Prospective Purchaser in accordance with clause 10.8 (d).

10.9    TAG ALONG

        Subject to Clause 10.10 hereof and provided TCL holds at least 30% of
        the issued and paid up share capital of the Company, in the event that
        (a) TCL intends to sell its shareholding in the Company (the "Sale
        Shares") so that its aggregate shareholding in the Company falls below
        30% of the issued and paid up share capital of the Company, otherwise
        than as permitted by Clause 10.3 hereof, and/or (b) Hutchison
        Telecommunications Limited ("Hutchison") intends to sell its
        shareholding or part thereof in TCL or TCL intends to issue shares so
        that Hutchison's aggregate attributable interest in the Company falls
        below 40% of the issued and paid up share capital in the Company:

        (a)     TCL shall notify the other Shareholders in writing stipulating
                the principal terms and conditions of any such sale(s) or issue
                of shares, particularly as to the price and time scale thereof
                (the "Sale Notice(s)");

        (b)     Any of the other Shareholders ("Offeree(s)") may, by written
                notice to TCL, within 21 days or such longer reasonable period
                permitted by the time scale shown by the Sale Notice(s),
                exercise its rights under this Clause 10.9 to the effect that it
                wishes to dispose of a number of the Shares equal to the parties
                respective shareholdings in the Company (pro rata the number of
                Sale Shares in question) in the context of the sale contemplated
                by the Sale Notice, or in the case of Hutchison selling its
                shares in TCL or TCL issuing further shares, the Offeree(s) may
                exercise its rights under this Clause 10.9 to the effect that
                they may dispose of a number of Shares pro rata to the amount of
                the attributable interest in the Company being sold or
                transferred by way of Hutchison selling its shares in TCL or TCL
                issuing new shares, as the case may be;

        (c)     TCL shall use all reasonable endeavours to procure that the
                intended purchaser of the Sale Shares (or the shares of TCL, as
                the case may be) shall extend to the Offeree(s) an offer to
                purchase or acquire from the

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<PAGE>

                Offeree(s) a proportion of the Sale Shares which such Offeree's
                shareholding bears to the entire issued share capital of the
                Company (or a proportion of the attributable number of Shares to
                be acquired by the intended purchaser of shares of TCL which
                such Offeree's shareholding bears to the entire issued share
                capital of the Company), on terms no less favourable than those
                relating to the Sale Shares (or the shares of TCL, as the case
                may be). TCL shall only be permitted to dispose to the intended
                purchaser such number of the Sale Shares as is reduced by the
                number of Shares agreed to be sold by the Offerees accepting the
                offer above. Notwithstanding the restrictions on transfer
                contained in this clause 10, each of the Offerees shall be
                permitted to transfer Shares to the intended purchaser and/or
                TCL.

        (d)     The Offeree(s) shall thereafter co-operate with TCL and do all
                things necessary to effect completion of a sale of their Shares
                substantially on the terms contemplated by the Sale Notice;

        Provided that:

        (i)     it is hereby agreed and acknowledged that all negotiations in
                respect of a sale under the provisions of this Clause 10.9 shall
                be conducted by TCL who, however, shall take due note of any
                reasonable requests of the Offeree(s) in regard thereto;

        (ii)    in the event that the intended purchaser or one of its
                Affiliates is unable to take up any Offerees' Shares due to
                Indian law or foreign investment regulations, the intended
                purchaser shall nominate any third party acceptable under Indian
                law to acquire such Offeree's Shares;

        (iii)   in the event that any such sale does not proceed to completion
                for whatever reason, none of the parties shall have any claim
                against the other in respect thereof, whether for damages, costs
                or otherwise. Provided that this clause 10.9 shall not apply in
                respect of any sale of TCL Shares resulting from a mortgage,
                charge or pledge of the TCL Shares by TCL in favour of any
                financial institution or bank in support of advances or
                financial accommodation made available to the Company

10.10   SECTORAL CAPS

        It is hereby agreed that:

        (a)     the Parties shall do all things necessary to ensure that any
                exercise of the rights comprised in this Clause 10 hereof shall
                not give rise to any breach of the sectoral caps of the

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<PAGE>

                Government of India then in force relating to foreign investment
                in the telecom sector; and

        (b)     any sale or transfer contemplated under the provisions of this
                Clause 10 shall be subject to any necessary Government or
                regulatory approvals, whether in respect of the said sectoral
                caps or otherwise; and

        (c)     any time limit imposed by the provisions of this Clause 10 shall
                be extended pro tanto in respect of any period reasonably
                necessary to obtain any approval under Clause 10.10 (b) hereof.
                Provided that, the parties shall use all reasonable endeavours
                to expedite the obtaining of any such approvals; and

        (d)     If any Shareholder is unable to take up any Shares to be
                transferred in accordance with the provisions of this Agreement
                or any part thereof due to Indian law or foreign investment
                regulations, such Shareholder shall be entitled to nominate any
                third party acceptable to the continuing Shareholders and under
                Indian law to purchase such Shares or any part thereof.

10.11   DEED OF ADHERENCE

        If Shares are being transferred in accordance with the provisions of
        this Agreement to any party not already bound by the terms of this
        Agreement, then the Shareholder transferring those Shares must procure
        prior to such transfer that such transferee, agrees to be bound by this
        Agreement by signing a deed of adherence in a form approved by the
        Board.

10.12           [***]

11.     FURTHER OBLIGATIONS OF THE PARTIES

11.1    FURTHER ASSURANCE

        The Parties shall do and execute or procure to be done and execute all
        such further acts, deeds, things and documents as may be necessary to
        give full effect to the terms of this Agreement.

11.2    DIRECTORS TO VOTE TO IMPLEMENT THIS AGREEMENT

        Each of the Shareholders shall procure that any Director nominated by
        it, shall exercise or refrain from exercising any voting rights so as to

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<PAGE>

        ensure the passing of any resolution necessary to give full effect to
        the provisions of this Agreement.

11.3    ACCOUNTING AND REPORTING

        Each of the Shareholders shall (to the extent it is within its power to
        do so) procure that the Company will and the Company shall:

        (a)     prepare business plans and budgets as set out in Clause 7.1;

        (b)     keep true and accurate books of accounts and records in
                accordance with Indian and internationally accepted accounting
                practice and procedure and in accordance with Indian law and
                procure that such books and records are audited by the auditors
                annually as soon as possible after the end of each financial
                year;

        (c)     upon reasonable written notice to the Company allow the
                Shareholders or their authorised representatives or professional
                advisers and the Directors, the right during normal business
                hours to inspect/audit the books, accounting records and any
                documents or records of the Company, to make extracts and copies
                there from at their own expense, and to have full access to all
                its property and assets; and

        (d)     supply to each Director, such regular management and financial
                information in English as is customary and as they may from time
                to time reasonably require including monthly financial reports,
                monthly operating reports and status of various compliances.

11.4    EXCHANGE OF INFORMATION

        Each of the Parties shall promptly notify each other and the Company, of
        all or any matters coming to its notice which may affect the title to or
        enjoyment of the Company's premises, licences, authorisations, assets or
        property or the conduct of its business, and of all notifications,
        orders, demand and other communication received from any government or
        other authority in relation to the Company's business, licences,
        authorisations, assets or property.

11.5    FAIR DEALINGS

        All dealings between the Company and any Party or any Affiliate of a
        Party shall be on a fair and equitable basis and at arm's length.

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<PAGE>

12.     MAINTENANCE OF LICENCES, GOVERNMENT APPROVALS

        Each of the Parties shall (to the extent it is within its power to do
        so) procure that the Company will:

        (a)     use its best endeavours to obtain and maintain in full force and
                effect all governmental or other approvals, consents, licences,
                authorisations, declarations, filings and registrations as may
                be required or advisable for the carrying on of its business
                ("Relevant Authorisations"); and

        (b)     obtain and keep in effect such new or additional Relevant
                Authorisations as may become necessary for the carrying on of
                its business.

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13.     TERM, TERMINATION AND DISPUTES

13.1    TERM

        This Agreement shall continue in force from the Effective Date unless
        terminated by six months written notice upon mutual consent of all the
        Shareholders holding Shares on the date of such termination notice or
        upon the occurrence of a Pre - IPO Restructuring or an IPO provided that
        the provisions of Clauses 10.9 and 10.12, on the terms contained therein
        will survive the occurrence of a Pre-IPO Restructuring or an IPO in a
        market where the Shareholders incorporated in India do not have a right
        to sell their Shares.

13.2    RIGHTS OF PARTIES ON WINDING UP

        The Parties may prove in the winding-up of the Company to the maximum
        extent permitted by law for all sums due or to fall due to them
        respectively from the Company and shall exercise all rights of set off
        and generally do all such other acts and things as may be available to
        them in order to obtain the maximum receipts and recoveries.

13.3    AGREEMENT TERMINATES ON WINDING UP

        In the event of the winding up of the Company, this Agreement shall
        terminate and all of the terms of this Agreement shall cease to bind the
        Parties. Termination of this Agreement shall not affect the rights of
        any Party to exercise its rights in respect of any breach of this
        Agreement by any or all of the Parties prior to the winding up of the
        Company. In the event of any Party ceasing to have any legal or
        beneficial interest in any Shares, the terms of this Agreement shall
        cease to bind such Party (except Clauses 13.2 and 13.3 which shall
        continue to bind such Party) without prejudice to the rights of the
        other Parties to exercise their rights in respect of any breach of this
        Agreement by the departing Party prior to its ceasing to have any such
        interest, and if none of its Subsidiaries own any Shares, the Party
        ceasing to have such interest shall cause the Directors and CEO (if any)
        nominated by it to resign immediately.

14.     ARBITRATION AND CONSULTATION

14.1    CONSULTATION

        In the case of any dispute arising out of or in connection with this
        Agreement or its performance, including any question regarding its

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<PAGE>

        existence, validity or termination, the Parties shall first endeavour to
        reach an amicable settlement through mutual consultations and
        negotiations. If the Parties are unable to reach an amicable settlement
        within 30 Business Days from the date on which the dispute arose (except
        as to any matter for which express provisions are made in this
        Agreement), any of the Parties may make a reference to arbitration in
        accordance with Clause 14.2 hereof.

14.2    (a)     In the absence of any settlement of disputes or differences
                under Clause 14.1 above, any and all disputes or differences
                arising out of or in connection with this Agreement or its
                performance shall be submitted to arbitration at the request of
                a Party upon written notice to that effect to the other
                Party/Parties and such arbitration shall be conducted in
                accordance with the rules of the London Court of International
                Arbitration ("LCIA"), which rules are deemed to be incorporated
                by a reference into this clause, except as otherwise provided
                for in this Agreement. The dispute or difference shall be
                referred to a Sole Arbitrator to be appointed by the LCIA
                provided that if any party to the dispute or difference, within
                seven days of arbitration being invoked, stipulates that it is
                not agreeable to the appointment of a sole arbitrator, then the
                dispute or difference shall be referred to a Tribunal consisting
                of three arbitrators all of whom shall be appointed by the LCIA.
                The arbitrator(s) to be appointed by the LCIA shall not be a
                member of the LCIA's Indian Panel of arbitrators and shall be
                fluent in English. The language of arbitration shall be English
                and the place of arbitration shall be London.

        (b)     The Parties agree that the award of the arbitrators shall be
                final and binding upon the Parties, and that none of the Parties
                shall be entitled to commence or maintain any action in a court
                of law upon any matter in dispute arising from or in relation to
                this Agreement, except for the enforcement of an arbitral award
                granted pursuant to this Clause if required.

        (c)     The Arbitrator(s) may (but shall not be required to) award to
                the Party/Parties that substantially prevails on merits, its
                costs and reasonable expenses (including legal costs).

        (d)     When any dispute or difference is under arbitration, except for
                the matters under dispute or difference, the Parties shall
                continue to exercise their remaining respective rights and
                fulfill their remaining respective obligations under this
                Agreement to the extent practicable.

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<PAGE>

15.     CONFIDENTIALITY

15.1    AGREEMENT CONFIDENTIAL

        The Parties agree to keep secret and confidential and not to disclose,
        except to the extent required by law or any regulatory authority, to any
        third party (other than the respective directors, employees and advisors
        of the Parties or their controlling shareholders on a need to know
        basis) without the prior written consent of the disclosing Party any
        information (including the information as to the execution of this
        Agreement) or documents (including this Agreement and other related
        agreements that the Parties may execute) relating to the operation of
        the business of the Company.

        Any formal press or other public announcement in writing relating to
        this Agreement or any of its terms shall be in a form previously agreed
        by all Shareholders.

15.2    INJUNCTIVE RELIEF

        The obligations cast upon the Parties by this Clause 15 are extremely
        valuable, for which no adequate monetary compensation may be available,
        and accordingly performance of the said obligations by the other Party
        forms the very substance of this Agreement and goes to its very root and
        intent for which the aggrieved Party shall be, notwithstanding any other
        stipulation in this Agreement (including the arbitration provision),
        entitled to injunctive relief from the appropriate law courts in the
        event of the failure of the other Party to perform the said obligations.

15.3    SURVIVAL

        The rights, duties and obligations contained in this Clause 15 shall
        survive termination of this Agreement.

16.     AGREEMENT

16.1    AGREEMENT TO PREVAIL

        If any provision of the Memorandum or the Articles at any time conflicts
        with any provision of this Agreement then, to the extent permitted by
        Indian law, as between the Parties the provisions of this Agreement
        shall prevail.

                                       34

<PAGE>

16.2    AMENDMENT OF MEMORANDUM AND ARTICLES

        Each of the Parties hereby undertakes that it shall whenever necessary
        exercise all voting and other rights and powers available to it to
        procure the amendment of the Memorandum and Articles to the extent
        necessary to permit the Company and its affairs to be operated as
        provided herein so that the same are consistent with the provisions of
        this Agreement.

17.     NOTICES

        Any notice to be given by any Party to this Agreement should be in
        writing and shall be deemed duly served if delivered personally or sent
        by fax or by prepaid registered post (airmail in the case of
        international mail) to the addressee at the address or fax number set
        opposite its name below or at such other address or fax number as the
        Party to be served may have notified as its address or fax number for
        service:

        TCL

               To:       the Registered Office address stated above

               Attn:     Company Secretary;

               Copy to:  Hutchison Telecommunications Limited
                         18th Floor, Tower 2, Harbourfront
                         22 Tak Fung St, Kowloon
                         Hong Kong
               Attn:     Ting Chan
               Fax No:   (852) 2128-3101

        Telematics:

               To:       the Registered Office address stated above

               Attn:     The Chairman

        Indusind

               To:       the Registered Office address stated above

               Attn:     Company Secretary

                                       35

<PAGE>

        KMFL & KMIL

               To:       the Registered Office address stated above

               Attn:     Company Secretary

        Fascel

               To:       the Registered Office address stated above

               Attn:     Company Secretary

        Any notice sent by fax shall be deemed served on confirmation of good
        receipt in the case of a fax, and any notice served by registered post
        shall be deemed served 10 days after posting airmail, whether to an
        address in India or an address outside India. In proving the service of
        any notice it will be sufficient to prove, in the case of service by
        registered post, that such letter was properly stamped, registered,
        addressed and placed in the post.

18.     MISCELLANEOUS

18.1    LEGAL AND OTHER COSTS

        Each Party shall be responsible for the legal fees, costs and expenses
        incurred by it in the preparation, negotiation and execution of this
        Agreement.

18.2    COMPLETE AGREEMENT

        This Agreement, and any agreements to be entered into pursuant thereto
        embody all the terms and conditions agreed upon between the Parties and
        as from the Effective Date supersedes and cancels in all respects all
        previous correspondence, understandings and agreements (including the
        joint venture agreement dated 29 March 1995, except for claims already
        lodged with the Company, under such joint venture agreement and/or the
        articles of association of the Company in place prior to the Effective
        Date) between the Parties with respect to the subject matter hereof,
        whether such be written or oral.

18.3    UNENFORCEABLE PROVISIONS

        In the event that any provision contained in this Agreement or any part
        thereof shall for any reason be held to be invalid or unenforceable in
        any respect under the laws of India, such invalidity or unenforceability
        shall not affect any other provisions of this Agreement or the

                                       36

<PAGE>

        remaining parts thereof which shall then be construed as if such
        unenforceable provision or part thereof had never been contained herein.

18.4    NO PARTNERSHIP

        Nothing herein shall be taken to constitute or create a partnership
        among any of the Parties. No Party shall be deemed to be the agent of
        the other and none of the Parties shall have any authority to bind the
        other Party in any way except as provided in this Agreement.

18.5    AMENDMENT IN WRITING

        This Agreement shall not be varied amended or supplemented except by a
        written instrument signed by or on behalf of all the Parties to be
        bound.

18.6    NO ASSIGNMENT

        Without prejudice to the provisions of Clause 10, this Agreement is
        personal to the Parties and is not capable of being assigned in whole or
        in part by any Party.

18.7    NO WAIVER

        Failure of any Party at any time to require performance by any other
        Party of any provision of this Agreement shall in no way affect the
        right of such Party to require performance of that or any other
        provision, and any waiver by such Party of any breach of this Agreement
        shall not be construed as a waiver by such Party of any continuing or
        succeeding breach of such provision a waiver of the provision itself or
        a waiver of any other right under this Agreement.

18.8    COUNTERPARTS

        This Agreement may be executed in several counterparts, and any single
        counterpart or set of counterparts, signed in either case by all of the
        Parties shall be deemed to be an original, and all taken together shall
        constitute one and the same instrument.

18.9    GOVERNING LAW

        This Agreement shall be governed by and construed in accordance with the
        laws of India.

                                       37

<PAGE>

IN WITNESS WHEREOF this Agreement was executed by the Parties on the day and
year first above written.

SIGNED BY
for and on behalf of
INDUSIND TELECOM NETWORK LIMITED

in the presence of:

SIGNED BY
for and on behalf of
HAMKO FINANCIAL SERVICES LIMITED

in the presence of:

SIGNED BY
for and on behalf of
KOTAK MAHINDRA FINANCE LIMITED

in the presence of:

SIGNED BY
for and on behalf of
TRANS CRYSTAL LIMITED

in the presence of:

                                       38

<PAGE>

SIGNED BY
for and on behalf of
USHA MARTIN TELEMATICS LIMITED

in the presence of:

SIGNED BY
for and on behalf of
FASCEL LIMITED

in the presence of:

                                       39

<PAGE>

                             SCHEDULE A - FAIR VALUE

Where Fair Value falls to be determined under this Agreement in relation to any
Shares, it shall be the average of the two valuations provided by overseas
offices of Goldman Sachs and any one of CS First Boston, Merril Lynch or Morgan
Stanley ("the Valuers"). The valuation shall be done in accordance with the
following provisions of this Schedule:

1       The Valuers shall be jointly instructed by the Shareholder whose Shares
        are to be transferred ("Transferor") and the intending purchaser to
        value the Shares on the basis of an arm's length sale between a willing
        buyer with the funds to buy and a willing seller.

2.      The Valuers shall be directed to advise the Company and the relevant
        Parties of their determination of the fair value of the Shares within 45
        days or as soon as practicable thereafter.

3.      The decision of the Valuers shall be final and binding on the Parties
        and they shall be deemed to act as experts and not as arbitrators.

4.      The costs of the Valuers shall be borne equally by the Parties
        requesting the determination of the Fair Value.

5.      Each of the Transferor and the other such Parties shall be entitled to
        make such written submissions as the Valuers may accept and each of them
        and the Valuers shall have such access to the books and records of the
        Company as shall be reasonably required in connection with such
        determination.

                                       40

<PAGE>

                                  SCHEDULE - B

                          DRAFT ARTICLES OF THE COMPANY

                                       41

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