Document:

<PAGE>

                                                                    EXHIBIT 10.2

--------------------------------------------------------------------------------
                      BUSINESS SALE AND PURCHASE AGREEMENT
--------------------------------------------------------------------------------

                         BY AND AMONG:

                   (1)   WIPRO LIMITED

                   (2)   WIPRO EPERIPHERALS LIMITED

                   (3)   PROMOTERS

                     Dated August, 30  2000
<PAGE>

CONTENTS                                         Page

Clause Heading

1  Definitions and Interpretation
2 Sale of business
3 Consideration
4 Completion
5 Factory Land
6 Factory Buildings
7 Factory Plant, Machinery and other Fixed Assets
8 Items of general stores in stock
9 Licensed and Registrations
10  Amenities including water, electricity, drainage, etc.
11  Equipment, Furniture, Fixtures and other Fixed Assets
12  Leased Assets
13  Intellectual Property
14  Business Liabilities
15  Contracts under negotiation
16  Dealer and Franchisee channel contracts
17  Other contracts
18  Principal and Collaborator contracts
19  Wipro name and Wipro Brand name
20  Transition provisions
21  Post completion matters and indemnities
22  Representations and warranties
23  Miscellaneous

SCHEDULES

Schedule 1     Factory Land
Schedule 2     Factory Building
Schedule 3     Intellectual property
                Part A - Intellectual property which includes the name Wipro
                         as suffix or prefix
                Part B - all other intellectual property
Schedule 4     Principal and Collaborator contracts
                Part A - Existing principal and collaborator contracts
                Part B - Expired principal and collaborator contracts

EXHIBITS

Exhibit A          Promoters list
Exhibit B          Participation and Management Agreement
Exhibit C          Trademark Licence Agreement
Exhibit D          Facilities and Services Agreement
Exhibit E          Intellectual Property Assignment Agreement
Exhibit F          Form of Novation Agreement with Dealer and Franchisee Channel
Exhibit G1         Form of Novation Agreement with third parties (customers,
                   suppliers, etc.)
Exhibit G2         Form of Assignment of Lease agreement with Lessors of the
                   office premises including the residential premises
Exhibit H          Form of Novation Agreement with Principal and Collaborators
Exhibit I          Form of Acknowledgement of transfer of employment
<PAGE>

THIS BUSINESS SALE AND PURCHASE AGREEMENT is made on the 30th of  August, 2000

BETWEEN:

(1)  WIPRO LIMITED, a company deemed to be registered under the provisions of
     the Companies Act, 1956, whose registered office is Doddakannelli, Sarjapur
     Road, Bangalore 560 035, India (hereinafter referred to as "WIPRO " which
     term and expression shall wherever, the context otherwise requires, be
     deemed to include its successors);

(2)  WIPRO ePERIPHERALS LIMITED, a company registered under the provisions of
     the Companies Act, 1956, whose registered office is 40/1A, Basappa Complex,
     Lavelle Road, Bangalore,  India ("COMPANY" which term and expression shall
     wherever the context otherwise requires be deemed to include its
     successors);

(3)  THE PARTIES listed in Exhibit A to this Agreement (hereinafter collectively
     referred to as "Promoters" which term and expression shall wherever the
     context otherwise requires be deemed to include its successors and assigns)

WHEREAS:

A.   WIPRO is a diversified company having a presence in a number of businesses.
     The Vendor has, inter alia, been carrying on the business of manufacture
     and marketing of computer peripherals through its Peripherals Systems
     Division (PSD).

B.   Wipro ePeripherals Limited is a company incorporated on July 5th 2000,
     which has as its main objects to design, develop, manufacture, market,
     trade, maintain and export computer peripherals.

C.   WIPRO decided to restructure PSD as a separate legal entity to allow
     entrepreneurial talent, to get strategic investment, to facilitate the
     growth of the volume driven product business in the new entity and to
     create value for its shareholders.

D.   Consequent to this decision, WIPRO entered into Memorandum of Understanding
     (MOU) with the Promoters on June 30th, 2000 for the transfer of PSD to the
     Company (after its incorporation).

E.   Consistent with the requirements of the MOU, the Company has since accepted
     the provisions of the MOU as valid and binding on itself, in accordance
     with the provisions of the Companies Act, 1956 as well as the Specific
     Relief Act.

F.   In keeping with the conditions of the MOU, the Company have undertaken a
     detailed due diligence (legal, commercial, business and financial) of the
     Business and based on such due diligence have decided to proceed with this
     transaction.

G.   Therefore, the Parties hereto are now entering into this Business Sale and
     Purchase Agreement whereby WIPRO has agreed to sell and the Company has
     agreed to purchase the Business.
<PAGE>

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES as follows:

1.   DEFINITIONS AND INTERPRETATION

1.01  Definitions:
      -----------

In this Agreement, the terms listed below shall, unless the context requires
otherwise, have the meanings attached to them. These terms may be identified by
the capitalisation of the first letter of each principal word thereof.

1.1.1  "Agreement" means this Business Sale and Purchase Agreement and includes
        the recitals, schedules and appendices, and any amendments to this
        Agreement executed by and between the Parties in writing.

1.1.2  "Business" means the PSD as a going concern, as presently carried on by
       WIPRO and, where the context permits, shall include the Business Assets
       and Business Liabilities ;

1.1.3  "Business Assets" means all of the assets employed as on the effective
       date solely in the Business which have been identified by and between the
       Parties and set out in detail as under:

(a)  Factory Land and Factory Building as defined and detailed in Schedule 1;
                                                                  ----------
(b)  Factory Plant and Machinery and other fixed assets including assets taken
     on lease by WIPRO as defined and detailed in the Fixed Asset register
     maintained by WIPRO in respect of its PSD business and duly certified by
     the statutory auditors of Wipro;
(c)  All items of general stores in Stock
(d)  All Licenses and Registrations required under law for carrying on the
     businesseswherever so required to be transferred by WIPRO to the Company,
     at the request of the Company;
(e)  All amenities like water, electricity, drainage, etc;
(f)  All equipments, furniture, fixtures and other fixed assets including assets
     taken on lease by WIPRO wherever situated as defined and detailed in the
     Fixed Asset register maintained by WIPRO in respect of its PSD business and
     duly certified by the statutory auditors of WIPRO
(g)  Intellectual Property as defined and detailed in Schedule 2;
                                                      ----------
(h)  All current assets relating to the business as on the Effective date which
     are included in the Audited statement of Accounts of Wipro relating to PSD.

1.1.4   "Business liabilities" means the all liabilities relating to the
        business as on the Effective date which are included in the Audited
        statement of accounts of WIPRO relating to PSD .

1.1.5  "Consideration" means the consideration for the sale and purchase of the
       Business specified in Clause 3.01;

1.1.6  "Completion" means the completion of all activities relating to the sale
       and purchase of the Business by the Company as specified in Clause 4.02;

1.1.7  "Contracts under negotiation" means all contracts and agreements
       currently under negotiation in the Business by and between WIPRO and any
       third party.

1.1.8  "Deferred Benefits" means the benefits accruing to the Employees under
       the provident fund, gratuity and pension and accumulated leave

1.1.9  "Dealer and Frachisee channel contracts" means all the existing and valid
       contracts of the Business executed by WIPRO with Dealer and Frachisee
       Channel.
<PAGE>

1.1.10  "Effective Date" means the close of business of August 31, 2000 or such
        other date as the parties may mutually agree in writing;

1.1.11  "Employees" means all the employees of PSD who are to be transferred to
        the Company at Completion;

1.1.12  "Equity share capital" means the total issued, subscribed and paid up
        equity share capital

1.1.13  "Principal and Collaborator contracts" means;

        (i) all existing and valid contracts and agreements of the Business
            executed by and between WIPRO and any Principal and/or collaborator
            as detailed in Part A of Schedule 4 and

       (ii) all expired agreements and contracts of the Business which were
            executed by and between WIPRO and any Principal and/or Collaborator
            as detailed in Part B of Schedule 4, in terms of which, post
            expiration of such agreements and contracts, WIPRO continues to
            enjoy any right.

1.1.14   "Other Contracts" means all other existing and valid contracts and
         agreements of the Business executed by and between WIPRO and any other
         third party

1.1.15  "Promoters" means all the PSD employees who are shareholders of the
        Company each of whom individually or along with their relatives hold
        more than 0.5% of the equity share capital of the Company.

1.1.16  "Parties" means WIPRO, Purchaser and the Promoters collectively and the
        term "party" shall be construed accordingly.

1.1.17  "PSD" means the Peripherals Systems Division (which forms part of the
        Wipro Infotech business) of WIPRO (also known as Wipro Peripherals).

1.1.18  "MOU" means the Memorandum of Understanding dated June 30, 2000 entered
        into by and between WIPRO and the Promoters.

1.02  Interpretation
      --------------

In this Agreement and the Exhibits    and Schedules     hereto, except to the
extent that the context otherwise requires:

(a)  References to any document or agreement including this Agreement shall be
     deemed to include any references to such documents or agreements as
     amended, supplemented or replaced from time to time in accordance with its
     terms and (where applicable) subject to compliance with the requirements
     set forth therein.

(b)  References to a statute, ordinance or other law shall be deemed to include
     regulations and other instruments under it and consolidations, amendments,
     re-enactments or replacements of any of them.

(c)  References herein to Clauses    Exhibits     and Schedules      are to
     clauses in and schedules to this Agreement unless the context requires
     otherwise and the Schedules to this Agreement shall be deemed to form part
     of this Agreement. The headings are inserted for convenience only and shall
     not affect the construction of this Agreement.
<PAGE>

(d)  Unless the context requires otherwise, words importing the singular include
     the plural and vice versa and words importing a gender include every
     gender.

2.    SALE OF BUSINESS

2.01  Subject to the terms of this Agreement WIPRO shall sell as legal and
      beneficial owner and the Company shall purchase, together with all rights
      now or hereinafter attaching thereto, the Business.

2.02  WIPRO, in entering into this Agreement, has relied on the representations
      and warranties of the Company as set out in Clause 23.01 of this
      Agreement.

2.03  The Company, in entering into this Agreement, has relied on the
      representations and warranties of WIPRO as set out in Clause 23.02 of this
      Agreement.

2.04  The sale of the Business shall take effect on and from the Effective Date.

3.    CONSIDERATION

3.01  The Consideration payable by the Company for the acquisition of the
      Business shall be discharged as follows:

(a)  Issue and allotment by the Company to WIPRO of 5,460,000 fully paid up
     equity shares of Rupees Ten each (Rs. 10/-) at par valued in the aggregate
     at Rs.54,600,000 (Rupees Fifty Four Million six hundred thousand only)
     which post issue (excluding issue of shares under Clause 20.3(c) and (d)
     would constitute 39% of the total Equity share capital of the Company.

(b)  Issue and allotment by the Company to WIPRO of 1,000,000 12.5% 5 year
     redeemable secured debentures of Rs.100/- each at par valued in the
     aggregate Rs.100,000,000 (Rupees One Hundred Million) to be redeemed in 10
     quarterly installments with a moratorium of 10 quarters from the Effective
     Date in respect of which interest will be payable quarterly on a rear ended
     basis.

(c)  Rs.85,400,000/- (Rupees Eighty Five Million Four Hundred Thousand) by way
     of a cheque.

3.02  The consideration shall be adjusted and discharged by way of cheque after
      finalisation of the net asset value as of the Effective date as approved
      by the Company and Wipro

4.    COMPLETION

4.01  Completion shall take place on or before August 31, 2000 at the offices of
      WIPRO or at such other place as the Parties may mutually agree.

4.02  Prior to Completion, the Parties shall pass appropriate resolutions at
      meetings of their General Body and /or Boards (as may be necessary under
      applicable law) to give effect to the provisions of this Agreement. Such
      resolutions would enable the performance of their obligations herein and
      with respect to the Consideration that the Company has to make over to
      WIPRO in terms of Clause 3.01.
<PAGE>

4.03  It is agreed that on completion all (and not part only) of the following
      businesses shall be transacted on

      a.   the allotment of equity shares and debentures referred to in clause
           3.01 (a) and (b)

      b.   the handing over to WIPRO of the cheques referred to in clause 3.01
           (c).

4.04  The adjusted consideration as referred to in Clause 3.02 shall be paid by
      the Company to Wipro not later than September 30, 2000 failing which
      interest at the rate of 18% p.a. shall be payable from the due date till
      the date of payment.

5.    FACTORY LAND

5.01  The Factory Land was taken on lease by WIPRO from the KIADB with an
      undertaking to make absolute the sale of the Factory Land to WIPRO on
      completion of the lease period and compliance by WIPRO with all conditions
      of the lease.

5.02  Upon expiry of the Lease period for the Factory Land WIPRO is entitled to
      purchase the Factory Land from KIADB, on payment of such sums as may be
      stipulated by KIADB who owns the Factory Land

5.03  WIPRO has agreed to transfer and/or convey all the rights, title, etc to
      the Factory land to the Company either upon expiry of the lease period or
      at any time prior thereto but with the consent of KIADB.

5.04  On the request of the Company, WIPRO confirms that it shall make every
      effort for the direct conveyance of the Factory Land in favour of the
      Company consequent to the provisions of this Agreement. If such efforts
      are not successful, the Company agrees that WIPRO shall obtain conveyance
      of the Factory Land by KIADB to WIPRO and thereafter, WIPRO shall convey
      the Factory Land to the Company, subject to applicable law and the
      provisions of this Agreement.

      It is clarified that for the conveyance in favour of Company, the Company
      shall at all times be liable for the consideration payable to KIADB as
      stipulated in clause 5.02 above , including stamp duty, registration
      charges, legal fees, cesses or other statutory levies or charges etc.

      In the event of KIADB insisting upon first transferring the Factory land
      in favour of WIPRO, then WIPRO shall be liable for all costs of transfer
      including stamp duty, registration charges, legal fees, cesses or
      statutory fees, charges etc. However, the consideration payable to KIADB
      as stipulated in Clause 5.02 above shall be to the account of the Company.

      In the event of a direct conveyance from KIADB to the Company, the Company
     shall be liable for all costs of transfer including stamp duty,
     registration charges, legal fees, cesses or statutory fees, charges etc.

5.05  Consistent with the requirements of Clause 5.04the Parties shall co-
      operate with each other in good faith to ensure that the transfer /
      conveyance of the Factory Land to the Company is completed by a registered
      instrument at the earliest. From the Effective Date till such time as the
      Factory Land is transferred / conveyed to the Company, WIPRO shall grant
      the Company a right to use the Factory Land without any charge. However,
      all costs, expenses and charges in connection with the use of the Factory
      Land shall be to the Company's account.
<PAGE>

6.    FACTORY BUILDINGS

6.01  The Factory Buildings have been constructed by WIPRO on the Factory Land.

6.02  WIPRO agrees that it shall transfer / convey the Factory Buildings to the
      Company by a registered instrument at the time of conveyance of the
      Factory Land to the Company in accordance with Clause 5 hereto. From the
      Effective Date till such time as the Factory Building is transferred /
      conveyed to the Company, WIPRO shall grant the Company a right to use the
      Factory Building. However, all costs, expenses and charges in connection
      with the use of the Factory Land shall be to the Company's account.

7.    FACTORY PLANT, MACHINERY AND OTHER FIXED ASSETS AND ITEMS OF GENERAL
      STORES IN STOCK

7.01  The Factory Plant, Machinery and other fixed assets including assets taken
      on lease by WIPRO located in the Factory Building or on the Factory Land
      shall stand transferred to the Company on the Effective Date.

7.02  The items of general stores in Stock stored in the Factory Land, Factory
      Building and in any other premises shall stand transferred to the Company
      on the Effective Date.

8.    CURRENT ASSETS

8.01  All current assets viz inventories, sundry debtors, cash and bank
      balances, loans and advances, etc shall be transferred to the Company as
      on the Effective date.

9.    LICENSES AND REGISTRATIONS

9.01  The Company is entitled to seek the transfer / assignment of the Licenses
      and Registrations and WIPRO shall co-operate with the Company in good
      faith and shall take all reasonable steps that the Company may require to
      ensure that such Licenses and Registrations are transferred / assigned to
      the Company in a timely manner.

9.02  If the Company decides that it would not like the transfer / assignment of
      any particular License or Registration, it shall inform WIPRO immediately.
      WIPRO shall then be free to revoke such License or Registration or to
      continue with the same, with no responsibility / liability on the part of
      the Company.

10.    AMENITIES INCLUDING WATER, ELECTRICITY, DRAINAGE, ETC

10.01  The Amenities including water, electricity, drainage, etc  and shall
       stand transferred to the Company on the Effective Date.

10.02  WIPRO shall co-operate with the Company and shall take all reasonable
       steps that the Company may require to ensure that all deposits and
       transfer of all permits / licenses in relation to the Amenities are
       transferred to the Company.

11     EQUIPMENT, FURNITURE, FIXTURES AND OTHER FIXED ASSETS

     All the equipments, furniture, fixtures, telephone  and other fixed assets
   shall be transferred / conveyed to the Company on effective date.
<PAGE>

12     LEASED ASSETS

12.01  Subject to Clause 12.02,7.1 and 10.01 , all the Leased assets (forming
       part of the Business Assets shall be transferred / assigned to the
       Company by way of appropriate instruments within one month from the
       Effective Date or such date as may be extended by the Parties.

12.02  With respect to any Leased assets which require the consent of the lessor
       prior to such transfer / assignment, WIPRO and Purchaser shall take all
       steps as may be necessary to obtain such consent within the period
       stipulated in Clause 12.01. If the lessor does not give consent within
       such stipulated period, the Parties shall examine the feasibility of a
       sub-lease of the said Leased assets (in accordance with the terms and
       conditions of the lease between the lessor and WIPRO) to the Company. If
       a sub-lease is not feasible, WIPRO shall be under no obligation to
       transfer / assign the particular Leased assets.

13  INTELLECTUAL PROPERTY

13.01  WIPRO has a wholly owned subsidiary Wipro Trademarks Holding Limited
       ("Wipro Trademarks") which owns the Intellectual Property (forming part
       of the Business Assets as detailed in Schedule 3).

13.02  WIPRO confirms that the Intellectual Property as detailed in Part A of
       Schedule 3 lists out all the Intellectual Property which has the name
       "Wipro" suffixed to the trade name.

13.03  WIPRO confirms that all other Intellectual Property which do not conform
       to the conditions stipulated in Clause 13.02 above are listed in Part B
       of Schedule 3.

13.04  For a period of three years from the Effective Date, WIPRO shall permit
       the Company to use each of the Intellectual Property listed in Part A of
       Schedule 3 in accordance with the procedure set out as per applicable law
       as well as the terms and conditions contained in the Trade Mark Licence
       Agreement.

13.05  After the expiry of the three year period stipulated in Clause 13.04,
       WIPRO shall assign each of the Intellectual Property listed in Part A of
       Schedule 3 to the Company subject to the Company deleting the name
       "Wipro" as a suffix to the trade mark. For this purpose, Wipro and the
       Company agree to either;

a.  Wipro submitting to the Trade Mark Registry for cancellation of the
    registration of the Intellectual Properties so as to enable the Company to
    file fresh applications for registering the trade mark without the suffix
    "Wipro".

     Or

b.  Wipro assigning on an "as is where is basis" the trade marks to the Company
    along with an application for amendment of the Trade Mark registration for
    deleting all references to the name "Wipro" in the trade mark.

13.07  WIPRO confirms that it shall, in good faith, take such steps as may be
       necessary to ensure that Wipro Trademarks Holding Limited transfers the
       Intellectual Property as detailed in Part B of Schedule 3 to the Company
       on an "as is where is basis" within one month from the Effective Date in
       accordance with the procedure set out as per applicable law as well as
       the terms and conditions and the provisions contained in the Intellectual
       Property Assignment Agreement to be executed by and between WIPRO and the
       Company.
<PAGE>

13.08  In respect of the Intellectual Property rights pertaining to Genius
       Writer in PSD, the same shall be licensed by WIPRO to the Company on a
       non exclusive basis, for a period of three years from the effective date.
       After the 3 year period, the parties shall mutually decide on any further
       license.

14     BUSINESS LIABILITIES

14.01  All Business Liabilities shall be to the account of the Company.

14.02  Subject to Clause 14.03 all other liabilities other than Business
       liabilities pertaining to PSD which crystalizes not later than March 31,
       2002 shall be to the account of WIPRO provided that such liabilities
       pertain to the period prior to March 31, 1998

14.03  All sales tax liabilities pertaining to PSD pertaining to Financial Years
       97-98, 98-99, 99-2000 and 1.4.2000 to 31.3.2001 shall be to the account
       of the Company provided that;

       a.  the liability is identified by either the Company or WIPRO on or
           before June 30, 2002
       b.  the liability does not exceed Rs.20 Mn in the aggregate

15     CONTRACTS UNDER NEGOTIATION

15.01  All the contracts under negotiation by and between WIPRO and any other
       third party as of the Effective date shall be negotiated and executed by
       and between the Company and the third party.

16     DEALER AND FRACHISEE CHANNEL CONTRACTS

       The Dealer and Franchisee Channel contracts shall be transferred/assigned
       to the Company by way of appropriate instruments (as set out in Novation
       Agreement in Exhibit F to this Agreement ) within one month from the
       effective date or such date as may be extended by the Parties unless
       specifically waived by Wipro.

       With respect to Dealer and Franchisee Channel contracts which require the
       consent of the dealer or franchisee as the case may with whom WIPRO has
       contracted, prior to such transfer or assignment, WIPRO shall take all
       steps as may be necessary to obtain such consent within a period of one
       month. If the dealer or franchisee as the case may be does not give
       consent within such stipulated period, WIPRO shall be under no obligation
       to transfer/assign the particular contract.

17     OTHER CONTRACTS

       All other contracts shall be transferred/assigned to the Company by way
       of appropriate instruments (as set out in Novation Agreement in Exhibits
       G1 and G2 to this Agreement) within one month from the effective date or
       such date as may be extended by the Parties.

       With respect to all other contracts which require the consent of the
       third party with whom WIPRO has contracted, prior to such transfer or
       assignment, WIPRO shall take all steps as may be necessary to obtain such
       consent within a period of one month. If the third party does not give
       consent within such stipulated period, WIPRO shall be under no obligation
       to transfer/assign the particular contract.

18     PRINCIPAL AND COLLABORATOR CONTRACTS

18.01  All Principal and Collaborator contracts as detailed in Part A of
       Schedule 4) shall be transferred / assigned to the Company by way of
       appropriate instruments (as set out in Novation Agreement in Exhibit H to
       this Agreement) within one month from the Effective Date or such date as
       may be extended by the Parties.
<PAGE>

18.02  With respect to the Principal and Collaborator Contract as detailed in
       Part A of Schedule 4 which require the consent of the Principal and/or
       Collaborator with whom WIPRO has contracted, prior to such transfer /
       assignment of the rights under this Agreement, WIPRO and Purchaser shall
       take all steps as may be necessary to obtain such consent within the
       period stipulated in Clause 19.01.

18.03  If the principal or collaborator as the case may be does not give consent
       within such stipulated period, WIPRO shall be under no obligation to
       transfer / assign the rights under that particular Contract.

18,04  With respect to the principal and collaborator contractor as detailed in
       Part B of Schedule 4 which require the consent of the principal and
       collaborator with whom WIPRO has contracted, prior to assigning the
       rights enjoyed by WIPRO post expiration of the contract, WIPRO and the
       Company shall use their best efforts as well as take all steps as may be
       necessary to assign such rights subject however to obtaining the consent
       within the period stipulated in Clause 18.01.

18.05  If the principal and/or collaborator does not give consent within such
       stipulated period WIPRO and the Company shall mutually agree the
       methodology to be pursued to enable the Company to enjoy the rights under
       the particular contract alternative .

19     WIPRO NAME AND WIPRO BRAND NAME

19.01  For a period of one year from the effective date or until the expiry of 6
       months prior to an Initial Public Offering whichever is later, WIPRO
       shall permit the Company to use the "Wipro" name as part of the Company's
       name.

19.02  Immediately upon expiry of the term stipulated in clause 19.1, the
       Company shall take all steps as may be necessary to delete the name
       "Wipro" from the Company's name.

19.03  For a period of three years from Effective date, WIPRO shall permit the
       Company to use the Wipro brand name in relation to its existing products.

19.04  For a period of three years from Effective date, the Company shall be
       entitled to use the Wipro brand name in relation to any new products
       subject however to WIPRO specifically consenting in writing for the grant
       of a licence.

19.05  The usage of the Wipro name shall be subject to such terms and conditions
       as well as the provisions contained in the Trademark License Agreement to
       be executed by and among WIPRO, the Company and Wipro Trademarks Holding
       Limited.

20     TRANSFER OF EMPLOYEES

20.01  The Company has agreed to employ on and from the Effective Date and WIPRO
       has agreed to release from its employment the Employees as per the terms
       and conditions contained in the Employee Transfer Agreement.

21     TRANSITION PROVISIONS

21.01  After the Effective date and upto the time specified in clause 21.03
       herein,  WIPRO shall permit to the extent feasible:
<PAGE>

(a)  credit all monies received from the customers of the Business customers to
     the PSD Account and shall instruct the concerned bank to transfer the
     amounts received into that account on a periodic basis to an account
     designated by the Company.

(b)  accept in its name all purchase orders from all the customers of the
     Business both existing as well as future and shall forward the same to the
     Company;

(c)  permit the Company to raise invoices on the customers of the Business
     (where absolutely necessary) in its name on a monthly basis;

(d)  permit the Company to correspond in its name with the customers of the
     Business both existing as well as future;

(e)  permit the Company to issue delivery challans, brochures, pamphlets in its
     name in respect of despatches relating to the Business;

(f)  extend the banking facilities of WIPRO (subject to the consent of the banks
     involved) to the Company;

(g)  authorise specified representatives of the Company to take actions in
     compliance of paragraphs (b) to (e)  above.

(h)  Management of  the provident fund, gratuity and pension funds for the
     Employees;

(i)  use the office and warehouse premises of WIPRO on a shared basis as well as
     the use of the telephone, fax, and other communication equipments, etc.

21.02  In consideration of WIPRO giving its permission to the Company to do any
       or all of the actions contemplated in Clause 21.01, the Company agrees to
       pay and to indemnify WIPRO against all costs, expenses, liabilities or
       claims (whether known or unknown, asserted or unasserted, matured or
       unmatured, absolute or contingent, liquidated or unliquidated, incurred
       directly or consequential or due or to become due) arising from or as a
       result of WIPRO complying with the provisions of Clause 21.01.

21.03  WIPRO has agreed to do the actions contemplated in Clause 21.01 till such
       time as the Company is able to put in place alternate arrangements and
       take on the responsibility itself. The Company confirms that it shall
       make the alternate arrangements forthwith and without delay and in any
       event, within a period of four months from the Effective Date. Provided
       that WIPRO shall, at its own discretion, be entitled to extend the period
       of four months for any or all of the action contemplated in Clause 19.01.

22     POST-COMPLETION MATTERS AND INDEMNITIES

22.01  From the Effective Date and in accordance with the provisions of this
       Agreement, Vendor shall cease to carry on the Business and the Company
       shall be thereafter entitled to carry on the Business in succession to
       WIPRO. Consequently, the Company shall bear all cost and expenses
       relating to the Business and shall be entitled to receive from WIPRO all
       amounts received by WIPRO from the customers of the Business.

22.02  The Company shall after Completion Date perform on its own account all
       the obligations of WIPRO in relation to the Business (and in particular
       in relation to the Licenses, Registrations, Leased Assets, Principal and
       Collaborator Contracts, Contracts under negotiation, other contracts
       Dealer and Franchisee contracts) in relation to which the benefit is
       hereby transferred / agreed to be transferred. Consequently, the Company
       shall indemnify and keep indemnified WIPRO against all
<PAGE>

       actions, claims, costs, liabilities and expenses (whether known or
       unknown, asserted or unasserted, matured or unmatured, absolute or
       contingent, liquidated or unliquidated, incurred directly or
       consequential or due or to become due) brought against or incurred by
       WIPRO as a result of any act, omission or delay by the Company after
       Completion Date in relation to the Business.

22.03  The Parties confirm that, except as provided in this Agreement, from the
       Effective Date, neither Party shall have any claim against the other.

22.04  WIPRO and Purchaser hereby mutually agree and undertake that for a period
       of 3 years from the Effective Date neither Vendor, the Company nor the
       Promoter shall solicit or hire the employees of the other without
       obtaining the prior written consent of the other.

23     REPRESENTATIONS AND WARRANTIES

23.01  As of the date of this Agreement, WIPRO represents and warrants as under:

(a)  That is has the power to sell the Business in accordance with the terms of
     this Agreement and has in this connection, obtained all necessary internal
     approval for the transfer of the Business.

(b)  Except as provided in this Agreement and except as stipulated by applicable
     law or separately disclosed to the Company by way of a disclosure letter,
     the Business is not subject to any encumbrance, mortgage, charge, pledge or
     lien or any other form of security interest.

23.02  As of the date of this Agreement, the Company represent and warrant as
       under:

(a)  That it is duly and validly organised and incorporated under the laws of
     India.

(b)  That is has obtained all requisite internal approvals to enter into and
     deliver this Agreement and perform the obligations hereunder.

(c)  The provisions of this Agreement and all related documentation to implement
     the provisions of this Agreement constitute legal, valid and binding
     obligations and are enforceable against itself in accordance with the terms
     of this Agreement, subject to insolvency laws and such other laws affecting
     the enforcement of creditor's rights in general.

(d)  There is nothing under applicable law nor any provision in its
     constitutional documents which would prohibit, conflict with or in any way
     prevent the execution, delivery or performance of the terms of this
     Agreement.

24.    MISCELLANEOUS

24.01  Stamp duty and registration charges and all other levies or duties in
       respect of the sale and purchase of the Business shall be borne and paid
       for by the Company. All other out of pocket expenses and lawyers fees, if
       any, shall be borne by the party incurring the same.

24.02  Each notice, demand or other communication given or made under this
       Agreement shall be in writing and delivered or sent to the relevant Party
       at its address or fax number set out below (or such other address or fax
       number as the addressee has by five (5) days' prior written notice
       specified to the other Party):
<PAGE>

     To WIPRO:  Corporate Vice President - Legal and Company Secretary
                          Wipro Limited,
                          Doddakannelli, Sarjapur Road,
                          Bangalore - 560 035
                          Fax: (91-80) 8440051

     To the Company:  Chief Executive Officer
                          Wipro ePeripherals Limited
                          40/1A, Basappa Complex
                          Lavelle Road
                          Bangalore -
                          Fax: (91-80) 2270378

     To the Promoter :    Ram N Agarwal
                          209/1B, HAL II Stage
                          16 B Main
                          Bangalore 560 008

     Any notice, demand or other communication so addressed to the relevant
     Party shall be deemed to have been delivered (a) if given or made by
     letter, when actually delivered to the relevant address and (b) if given or
     made by fax, when despatched.

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

24.04  This Agreement shall not be assignable by any of the Parties.

24.05  This Agreement (together with any documents referred to herein)
       constitutes the whole agreement between the parties and it is expressly
       declared that no variations and / or amendments hereof shall be effective
       unless made in writing.

24.06  The provisions of this Agreement including the representations,
       warranties and undertakings herein contained, insofar as the same shall
       not have been fully performed at Completion, shall remain in full force
       and effect notwithstanding Completion.

24.07  The parties hereto shall do and execute or procure to be done and
       executed all such further acts, deeds, things and documents as may be
       necessary to give effect to the terms of this Agreement and to effect the
       transfer of the Business to the Company as contemplated hereunder.

24.08  This Agreement is governed by and construed in accordance with Indian
       law.

24.09  Any and all disputes, questions, differences or claims under or in
       relation to this Agreement shall first be negotiated by and between the
       Parties. At any time during the negotiations, either of the Parties can
       refer the dispute, question, difference or claim to arbitration in
       Bangalore, in accordance with the provisions of the Arbitration and
       Conciliation Act, 1996.
<PAGE>

24.10  Subject to Clause 24.09, the courts in Bangalore alone shall have
       jurisdiction in relation to this Agreement.

IN WITNESS WHEREOF this Agreement has been executed on the day and year first
above written.

SIGNED by Suresh C Senapaty
Corporate Executive VP-Finance                    )
for and on behalf of WIPRO                        )
in the presence of: Satish Menon                  )
Corporate Vice President-Legal & Company Secretary

SIGNED by  Ram N Agarwal                          )
for and on behalf of THE COMPANY                  )
in the presence of: G Srinivasan

SIGNED by  Ram N Agarwal                          )
for and on behalf of THE PROMOTERS                )
in the presence of: G Srinivasan
<PAGE>

                                  SCHEDULE 1
                                 Factory Land

                                  SCHEDULE 2
                               Factory Building

                                  SCHEDULE 3
                             Intellectual Property
PART A - INTELLECTUAL PROPERTY WHICH INCLUDES THE NAME WIPRO AS SUFFIX OR PREFIX
                   PART B - ALL OTHER INTELLECTUAL PROPERTY

                                  SCHEDULE 4
                     Principal and Collaborator contracts
            PART A - EXISTING PRINCIPAL AND COLLABORATOR CONTRACTS
             PART B - EXPIRED PRINCIPAL AND COLLABORATOR CONTRACTS<PAGE>

                                                                    EXHIBIT 10.3

--------------------------------------------------------------------------------
                         FACILITIES SERVICES AGREEMENT
--------------------------------------------------------------------------------

                    BY AND BETWEEN:

                    (1)  WIPRO LIMITED

                    (2)  WIPRO EPERIPHERALS LIMITED

                             Dated August 30, 2000
<PAGE>

                          FACILITIES SERVICES AGREEMENT

This FACILITIES SERVICES AGREEMENT is entered into on this 30th day of August
2000 by and between:

WIPRO LIMITED, a company incorporated in accordance with the laws of India,
having its registered office at Doddakannelli, Sarjapur Road, Bangalore 560 035
(hereinafter referred to as "WIPRO" which expression shall unless it be
repugnant to the context be deemed to include its successors in title and
permitted assigns) of the First Part; and

WIPRO EPERIPHERALS LIMITED, a company incorporated under the laws of India,
having its registered office at  40/1A Basappa Complex, Lavelle Road,Bangalore
560 001 (hereinafter referred to as "the Company " which expression shall unless
it be repugnant to the context be deemed to include its successors in title and
permitted assigns) of the Second Part.

WHEREAS

A.      Wipro is a diversified company having a presence in a number of
        businesses. Wipro, has, inter alia, been carrying on the business of
        manufacture and marketing of computer peripherals through its
        Peripherals Systems Division (PSD).

B.      Wipro has decided to restructure PSD as a separate legal entity to allow
        entrepreneurial talent, to get strategic investment, to facilitate the
        growth of the volume driven product business in the new entity and to
        create value for its shareholders.

C.      Consequent to this, Wipro and the Company has entered into a Business
        Sale and Purchase Agreement dated August 30, 2000 in terms of which the
        PSD of the Company has sold by Wipro to the Company.

D.      In terms of the conditions contained in the Business Sale and Purchase
        Agreement, Wipro agrees to provide certain facilities and services (as
        hereinafter defined) subject to and on the terms and conditions
        contained in this Agreement.

E.      Therefore, the Parties hereto are now entering into this Facilities
        Services Agreement whereby

NOW THEREFORE this Agreement witnesseth as under:

1.      Definitions and Interpretation

1.1     Definitions

        When used in this Agreement (including the recitals), the following
        terms shall have the following meanings:

        "Agreement" shall mean this Facilities Services Agreement.

        "Party" and "Parties" shall refer to WIPRO and the Company individually
        and collectively respectively.
<PAGE>

        "Facilities Services" shall mean the facilities and services to provided
        by WIPRO to the Company from time to time as set out in Schedule _1__.

1.2     Interpretation

        Unless otherwise stated or unless the context otherwise requires, in
        this Agreement:

        (a)  Headings are for convenience only and shall not affect its
             interpretation.

        (b)  Where a word or phrase is defined, other parts of speech and
             grammatical forms of that word or phrase shall have corresponding
             meanings.

        (c)  References to the Recitals, Clauses, Schedules shall be references
             to the recitals, clauses and schedules of this Agreement.

        (d)  References to the Agreement shall mean and include an appropriate
             reference to the Schedules hereto.

        (e)  References to statutes shall be a reference to the statutory
             enactments, rules and regulations (as modified, amended or re-
             enacted as of the appropriate date) in force.

2.      Engagement:

        The Company hereby agrees to obtain the Facilities and Services from
        WIPRO, and WIPRO hereby agrees to render and provide the Facilities
        Services to the Company subject to and on the terms and conditions set
        forth in this Agreement.

3.      Requirement for Services:

        The parties may mutually agree to amend the scope of Facilities and
        Services to be provided under this Agreement from time to time.

4.      Payments

4.1     WIPRO will be paid by the Company as Fees of an amount which will be
        determined as below:

4.2     WIPRO shall also be paid by the Company all costs, expenses, liabilities
        or claims arising from or as a result of the provision of facilities and
        services by Wipro to the Company.

5.      Term

        This Agreement shall come into force on its execution and shall continue
        to be in force until__________.
<PAGE>

6.      No Agency

        The Parties agree that the relationship between WIPRO and the Company
        under this Agreement is that of principal to principal and no agency
        shall be established as a result of this Agreement.

7.      Waiver

        The failure, with or without intent, of any Party to insist upon the
        performance (in strict conformity with the literal requirements) by the
        other Party of any term or stipulation of this Agreement, shall not be
        treated or deemed to constitute a modification of any terms or
        stipulations of this Agreement. Nor shall such failure or election be
        deemed to constitute a waiver of the right of such Party at any time
        whatsoever thereafter to insist upon performance by the other strictly
        in accordance with any terms or provisions hereof.

        All terms, conditions and obligations under this Agreement shall remain
        in full force and effect at all times during the subsistence of this
        Agreement except where otherwise amended or modified by them by mutual
        written agreement.

8.      Entire Agreement and Modifications

        The Parties confirm and acknowledge that this Agreement shall constitute
        the entire agreement between them and shall supersede and override all
        previous communications, either oral or written, between the Parties
        with respect to the subject matter of this Agreement, and no agreement
        or understanding varying or extending the same shall be binding upon any
        Party unless arising out of the specific provisions of this Agreement.

        No amendment, modification or addition to this Agreement shall be
        effective or binding on either of the Parties unless set forth in
        writing and executed by them through their duly authorised
        representatives; and subject to obtaining requisite approval, if any,
        following such execution.

9.      Notices

        All notices, communications and other correspondence required or
        permitted by this Agreement shall be in writing and shall be sent by (a)
        facsimile, with confirmation copy sent by registered first class
        airmail, (b) by personal delivery with acknowledgement of receipt or (c)
        by registered, first class air mail, return receipt requested and
        postage prepaid, to the following address:

        in the case of the Wipro to:   Corporate Vice President - Legal and
                                       Company Secretary
                                       WIPRO Limited
                                       Doddakannelli, Sarjapur Road
                                       Bangalore - 560 035

                              Fax:     91 (80) 844 0051

        in the case of Company to:     Chief Executive Officer
                                       Wipro ePeripherals Limited
                                       40/1A Basappa Complex
                                       Bangalore

                                Fax    2270378
<PAGE>

        All such notices, communications and correspondence shall be sent and
        deemed to have been received as follows: (i) if by facsimile, upon
        receipt of the confirmation copy; and (ii) if by personal delivery,
        courier or registered, first class airmail, upon receipt or refusal of
        delivery. A Party may change the address to which notices are to be sent
        by a notice complying herewith to that effect. All notices will be in
        English.

10.     Severability

        Should any part of this Agreement be declared illegal or unenforceable,
        the Parties will co-operate in all ways open to them to obtain
        substantially the same result or as much thereof as may be possible,
        including taking appropriate steps to amend, modify or alter this
        Agreement.

        If any term or provision of this Agreement shall be hereafter declared
        by a final adjudication of any tribunal or court of competent
        jurisdiction to be illegal, such adjudication shall not alter the
        validity or enforceability of any other term or provision unless the
        terms and provisions declared (by either Party) shall be one expressly
        defined as a condition precedent or as of the essence of this Agreement,
        or comprising an integral part of, or inseparable from the remainder of
        this Agreement.

11.     Governing Law and Arbitration

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

11.2    Any dispute, controversy or claim arising out of or in relation to this
        Agreement or the breach, termination or invalidity thereof, if the same
        cannot be settled amicably among the Parties concerned, shall be settled
        by final and binding arbitration in accordance with the Rules of
        Conciliation and Arbitration of the International Chamber of Commerce.
        The arbitration proceedings, shall take place at Bangalore in India and
        the proceedings shall be exclusively in English.

11.3    No Party shall be entitled to commence or maintain any action in a court
        of law upon any matter in dispute until such matter shall have been
        submitted to arbitration and determined as provided above, and then only
        for the enforcement of the arbitral award.

11.4    Pending the resolution of a dispute by arbitration, the Parties shall,
        except in the event of termination, continue to perform all their
        obligations under this Agreement without prejudice to a final adjustment
        in accordance with the arbitral award.
<PAGE>

11.5    Notwithstanding anything contained herein, the Parties shall have a
        right to institute legal proceedings to prevent any continuing breach of
        the provisions of this Agreement to seek an injunctive or any other
        specific relief.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by and
through their duly authorised representatives as of the date written herein.

SIGNED by Suresh C Senapaty
Corporate Executive VP-Finance                     )
for and on behalf of WIPRO                         )
in the presence of: Satish Menon                   )
Corporate Vice President-Legal & Company Secretary

SIGNED by Ram N Agarwal                            )
for and on behalf of THE COMPANY                   )
in the presence of: G Srinivasan                   )

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]