Document:

EXHIBIT 6

                                                               EXECUTION COPY

                        PUT AND CALL OPTION AGREEMENT

                         dated as of August 20, 2004

                                   between

         DEUTSCHE BANK AG - LONDON acting through DB ADVISORS, L.L.C.

                                     and

                             ESSAR GLOBAL LIMITED

<PAGE>

           PUT AND CALL OPTION AGREEMENT, dated as of August 20, 2004 (this
 "Agreement"), between DEUTSCHE BANK AG - LONDON acting through DB ADVISORS,
 L.L.C. (the "Put Holder"), and ESSAR GLOBAL LIMITED (the "Call Holder").

           WHEREAS, (a) pursuant to the Note and Warrant Purchase Agreement,
 dated as of November 5, 2003, by and among Aegis Communications Group,
 Inc. (the "Company"), the Put Holder and the Call Holder (the "Purchase
 Agreement", except as otherwise defined herein, terms defined in the
 Purchase Agreement are used herein as therein defined), the Put Holder is
 the record and beneficial owner of 263,303,304 Warrants to purchase shares
 of duly authorized, validly issued, fully paid and nonassessable Common
 Stock and the Call Holder is the record and beneficial owner of  264,358,628
 shares of duly authorized, validly issued, fully paid and nonassessable
 Common Stock, and (b) the Put Holder desires to exercise such Warrants
 in accordance with the terms thereof and subject to the terms of this
 Agreement;

           WHEREAS, the Put Holder owns and holds a Second Amended and
 Restated Secured Promissory Note in the principal sum of $9,170,266.41
 issued by the Company to the Put Holder on March 30, 2004 (the "Note");

           WHEREAS, the Company, the Put Holder, the Call Holder and
 certain other stockholders of the Company's Common Stock are parties to
 a Stockholders Agreement dated as of November 5, 2003 (the "Stockholders
 Agreement"), pursuant to which the Put Holder is entitled to designate the
 DB Designees (as defined below) to the Board (as defined in the Stockholders
 Agreement);

           WHEREAS, the Put Holder desires (a) after exercise of its
 Warrants, the right to put 150,000,000 shares of Common Stock (as such
 number of shares may be adjusted pursuant to Section 8.03, the "Shares")
 to the Call Holder; (b) the right to put 80% of the then outstanding debt
 represented by the Note (plus accrued interest) to the Call Holder; (c)
 after exercise of its Warrants, to grant the Call Holder the right to call
 the Shares; and (d) to assign its right to designate the DB Designees (as
 defined in the Stockholders Agreement) to the Company, all on the terms
 and conditions set forth herein; and

           WHEREAS, the Call Holder desires to (a) secure its obligations
 under the Put Options (as defined below) by collateral provided by Prime
 (as defined below) pursuant to the terms of the Pledge Agreement by Prime
 (as defined below), and acknowledges that execution of this Agreement
 and the Pledge Agreement and receipt of a legal opinion that the Pledge
 Agreement is a legal, valid and binding obligation of Prime under Indian
 law, in form reasonably acceptable to the Put Holder, are conditions
 precedent to the exercise of the Put Holder's Warrants and (b) upon an
 Event of Default, assign its right to designate the Essar Designees (as
 defined below) to the Company, all on the terms and conditions set forth
 herein;

           NOW, THEREFORE, in consideration of the mutual representations,
 warranties, covenants and agreements contained herein, the parties hereto
 agree as follows:

                                  ARTICLE I

                                 DEFINITIONS

           SECTION 1.01  Definitions
                         -----------

              Except as otherwise specified or as the context may otherwise
 require, the following terms shall have the respective meanings set forth
 below whenever used in this Agreement and shall include the singular as well
 as the plural:

           "Affiliate" means, with respect to any Person, any other Person
 that directly or indirectly controls, is controlled by, or is under common
 control with, such Person.

           "Bankruptcy" means that the Company or any of its Affiliates shall
 generally not pay its debts as such debts become due, or shall admit in
 writing its inability to pay its debts generally, or shall make a general
 assignment for the benefit of creditors; or any proceeding shall be
 instituted by or against the Company or any of its Affiliates seeking to
 adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
 reorganization, arrangement, adjustment, protection, relief, or composition
 of it or its debts under any law relating to bankruptcy, insolvency or
 reorganization or relief of debtors, or seeking the entry of an order for
 relief or the appointment of a receiver, trustee or other similar official
 for it or for any substantial part of its property and, in the case of any
 such proceeding instituted against it (but not instituted by it) that is
 being diligently contested by it in good faith, either such proceeding shall
 remain undismissed or unstayed for a period of 30 days or any of the actions
 sought in such proceeding (including, without limitation, the entry of
 an order for relief against, or the appointment of a receiver, trustee,
 custodian or other similar official for, it or any substantial part of its
 property) shall occur; or the Company or any of its Affiliates shall take
 any corporate action to authorize any of the actions set forth above.

           "Business Day" means a day of the year on which banks are not
 required or authorized by law to close in the City of New York.

           "control", "controlled by", and "under common control with" means
 the direct or indirect possession of ordinary voting powers to elect a
 majority of the board of directors or comparable body of a Person.

           "Corporate Restructuring" means any of the following actions by
 the Company: (a) consolidation with or merger into another Person; (b) sale
 of all or substantially all of the Company's assets; (c) sale of shares
 representing more than 30% of the fully diluted Common Stock immediately
 prior to such transaction (other than upon exercise of any of the Warrants),
 inclusive of the sale of shares in connection with the acquisition of
 certain assets from or merger with ETQ ("ETQ"), an Affiliate of the Call
 Holder, which sale shall not represent more than 15% of the fully diluted
 Common Stock immediately prior to such transaction (for the avoidance of
 doubt, the 15% of the fully diluted Common Stock limit on the acquisition of
 certain assets from ETQ assumes that there is no assumption of debt or cash
 consideration paid for the acquisition of such assets in addition to Common
 Stock); (d) payment of any cash dividend on any of the Company's outstanding
 stock (whether common or preferred); (e) the issuance of any equity
 securities to any Affiliate of the Company or the Call Holder other than
 to ETQ as described in clause (c) above; (f) any other recapitalization
 transaction involving the Company; or (g) any other business combination
 involving the Company (including any asset acquisition by the Company)
 other than a business combination with ETQ as described in clause (c) above.

           "DB Designees" has the meaning ascribed to such term in the
 Stockholders Agreement.

           "Essar Designees" has the meaning ascribed to such term in the
 Stockholders Agreement.

           "Event of Default" means an Event of Default as defined in the
 Pledge Agreement or a default by the Call Holder of any of its obligations
 hereunder.

           "Governmental Authority" means any United States federal, state or
 local or any foreign government, governmental, regulatory or administrative
 authority, agency or commission or any court, tribunal, or judicial or
 arbitral body.

           "Governmental Order" means any order, writ, judgment, injunction,
 decree, stipulation, determination or award entered by or with any
 Governmental Authority.

           "Person" means an individual, partnership (whether general or
 limited), corporation (including a business trust), joint stock company,
 trust, custodian, nominee, estate, joint venture, association, limited
 liability company or other entity, or a government or any political
 subdivision or agency thereof.

           "Pledge Agreement" means the Pledge of Shares, dated as of the
 date hereof, by Prime as Pledgor and Deutsche Bank AG - London as the
 Pledgee.

           "Prime" means Prime Finance Limited, a company organized under the
 laws of Mauritius.

                                 ARTICLE II

                             EXERCISE OF WARRANTS

           SECTION 2.01  Exercise of Put Holder's Warrants.
                         ---------------------------------

             The Put Holder, acting through DB Advisors, shall exercise all
 263,303,304 of its Warrants on the date hereof upon the execution of this
 Agreement by the Call Holder, the execution of the Pledge Agreement by Prime
 and receipt of a legal opinion reasonably acceptable to the Put Holder that
 the Pledge Agreement is a legal, valid and binding obligation of Prime under
 Indian law.  The exercise of the Put Holder's Warrants shall be pursuant to
 Section 2(a)(i) of the Put Holder's Warrants which requires surrender of
 such Warrants along with the notice of exercise duly completed and executed
 at the principal office of the Company and payment to the Company by wire
 transfer to the account designated by the Company of an amount equal to the
 applicable exercise price multiplied by the number of shares being
 purchased.

                                 ARTICLE III

                               THE PUT OPTIONS

           SECTION 3.01  Grant of the Share Put Option.
                         -----------------------------

             Subject to the exercise of the Put Holder's Warrants pursuant
 to Section 2.01 hereof, the Call Holder hereby grants to the Put Holder the
 right, and not the obligation, to require the Call Holder to purchase the
 Shares upon the terms and conditions set forth in this Article III (the
 "Share Put Option").  The Share Put Option shall be exercisable in whole
 or in part by the Put Holder at any time during the period starting on the
 earlier of (a) March 31, 2005, (b) the Call Holder selling the Common Stock
 in violation of Section 8.06 of this Agreement or (c) the date of any
 Bankruptcy or Corporate Restructuring and, in any event, ending at 11:59
 p.m. New York City time on December 31, 2005 (the "Share Put Exercise
 Period").

           SECTION 3.02  Share Put Option Exercise Price.
                         -------------------------------

             Subject to adjustment pursuant to Section 8.04, the price per
 share to be paid for the Shares pursuant to the exercise of the Share Put
 Option shall be $0.01 per share (the "Share Put Option Exercise Price").

           SECTION 3.03  Grant of the Debt Put Option.
                         ----------------------------

             The Call Holder hereby grants to the Put Holder the right, and
 not the obligation, to require the Call Holder to purchase 80% of the then
 outstanding debt represented by the Note (including accrued interest) (the
 "Debt") upon the terms and conditions set forth in this Article III (the
 "Debt Put Option", and the Share Put Option and the Debt Put Option
 together, the "Put Options"). The Debt Put Option shall be exercisable in
 whole or in part by the Put Holder at any time during the period starting on
 the earlier of (a) December 1, 2004, (b) the Call Holder selling the Common
 Stock in violation of Section 8.06 of this Agreement or (c) the date of any
 Bankruptcy or Corporate Restructuring and, in any event, ending at 11:59
 p.m. New York City time on December 31, 2005 (the "Debt Put Exercise
 Period", and either the Debt Put Exercise Period or the Share Put Exercise
 Period, as applicable, a "Put Exercise Period").

           SECTION 3.04  Debt Put Option Exercise Price.
                         ------------------------------

             The price to be paid for the Debt pursuant to the exercise of
 the Debt Put Option shall be the product of (a) 0.8 multiplied by (b) the
 sum of (i) the outstanding principal amount of the Note as of the applicable
 Debt Put Exercise Date plus (ii) the accrued but unpaid interest on the
 outstanding principal amount of the Note as of such Debt Put Exercise Date
 (the "Debt Put Option Exercise Price").

           SECTION 3.05  Put Options Procedure.
                         ---------------------

              The Put Holder may exercise the Put Options by providing
 written notice to the Call Holder (a "Put Notice") at any time during the
 applicable Put Exercise Period (the date of such Put Notice being the "Put
 Exercise Date").  Such Put Notice shall constitute an irrevocable offer by
 the Put Holder to exercise its applicable Put Option and sell the Shares or
 the Debt referred to in such Put Notice.  Upon receipt of a Put Notice, the
 Call Holder shall be obligated to purchase the Shares or the Debt that the
 Put Holder shall have elected the Call Holder to purchase pursuant to the
 terms of this Article III.

           SECTION 3.06  Put Options Closing.
                         -------------------

              Completion of the sale and purchase of the Shares or the Debt,
 following the exercise of the applicable Put Option, shall take place no
 later than ten Business Days after the Put Exercise Date thereof (the "Put
 Closing").  At the Put Closing and upon payment of the Share Put Option
 Exercise Price or the Debt Put Option Exercise Price, as the case may be,
 the Put Holder shall deliver to the Call Holder or to one or more assignees
 or substitute purchasers designated by it, (a) in the case of a Put Closing
 in connection with a Share Put Option, certificates representing the Shares,
 which certificates shall be duly endorsed in blank or, in lieu thereof,
 shall have affixed thereto stock powers executed in blank, and in proper
 form for transfer or (b) in the case of a Put Closing in connection with a
 Debt Put Option, a promissory note executed on behalf of the Company and
 payable to the Call Holder in the principal amount of the Debt with a like
 maturity date, interest rate and tenor as that of the Note. The Share Put
 Option Exercise Price or the Debt Put Option Exercise Price, as the case
 may be, shall be payable to the Put Holder in cash in U.S. dollars by wire
 transfer of immediately available funds to an account or accounts, as
 appropriate, designated in writing by the Put Holder to the Call Holder not
 less than two Business Days prior to the Put Closing.  Failure to pay the
 Share Put Option Exercise Price or the Debt Put Option Exercise Price
 pursuant to this Section 3.06 shall be deemed an event of default under
 this Agreement and the Pledge Agreement.

                                 ARTICLE IV

                           SECURITY FOR PUT OPTIONS

           SECTION 4.01  Security for Put Options.
                         ------------------------

             The prompt and complete performance and payment, when due, of
 the obligations of the Call Holder to purchase the Shares and the Debt under
 the Put Options shall be fully secured by a pledge of collateral as is set
 forth in the Pledge Agreement.  The obligation of the Put Holder to exercise
 its Warrants pursuant to Section 2.01 shall be subject to the execution of
 this Agreement, the Pledge Agreement and such other documents and other
 papers that may be required in connection with the Pledge Agreement.

                                  ARTICLE V

                               THE CALL OPTION

           SECTION 5.01   (a) Grant of the Call Option.
                              ------------------------

              Subject to the exercise of the Put Holder's Warrants pursuant
 to Section 2.01 hereof, the Put Holder hereby grants to the Call Holder the
 right, and not the obligation, to purchase the Shares upon the terms and
 conditions set forth in this Article V (the "Call Option").  Provided that
 the Share Put Option has not been previously exercised, and subject to
 adjustment pursuant to Section 8.03, the Call Option shall be exercisable in
 whole or in part by the Call Holder at any time during any of the following
 periods (each, a "Call Exercise Period") as follows:

           (i)  during the Call Exercise Period starting December 15, 2004
                and ending at 11:59 p.m. New York City time on December 31,
                2004, the price per share for the Shares to be paid pursuant
                to the Call Option (the "Call Price") shall be $0.015 per
                share;

           (ii) during the Call Exercise Period starting January 1, 2005 and
                ending at 11:59 p.m. New York City time on March 31, 2005,
                the Call Price shall be $0.0175 per share; and

           (iii) during the Call Exercise Period starting April 1, 2005 and
                ending at 11:59 p.m. New York City time on December 31, 2005,
                subject to Section 5.01(b), the Call Price shall be the
                arithmetic average of the daily closing market price of a
                share of Common Stock over the period of the 30 trading days
                immediately preceding the Call Exercise Date (the "Average
                Market Price").

           (b)  Bona Fide Offers.

             If, at any time during the Call Exercise Period described in
 Section 5.01(a)(iii), the Call Holder delivers a Call Notice to the Put
 Holder, the Put Holder may, on or prior to the fifth Business Day after
 receipt of such Call Notice, deliver a written notice to the Call Holder
 setting forth (i) the existence of a bona fide offer from a third party to
 purchase the Shares, (ii) the purchase price to be paid for the Shares by
 such third party and (iii) an offer to sell the Shares to the Call Holder at
 such purchase price (the "Offer Notice"). If the Call Holder notifies the
 Put Holder in writing, on or prior to the fifth Business Day after receipt
 of the Offer Notice, that it agrees to purchase the Shares at the purchase
 price specified in the Offer Notice (the "Acceptance Notice"), the Put
 Holder shall sell the Shares to the Call Holder at such price (such price to
 be deemed the "Call Price" for purposes of Section 5.03) and the Call Holder
 shall have 30 calendar days following delivery of its Acceptance Notice to
 complete the purchase of the Shares (the date of such completion of the
 purchase to be deemed the "Call Closing" for purposes of Section 5.03)
 pursuant to the terms of Section 5.03, mutatis mutandis.  If the Call Holder
 does not deliver an Acceptance Notice to the Put Holder on or prior to the
 fifth Business Day after its receipt of the Offer Notice, the Put Holder
 may sell the Shares to the third party making such bona fide offer at the
 purchase price specified in the Offer Notice provided that such sale is
 consummated on or prior to the 45th calendar day after the failure of the
 Call Holder to deliver an Acceptance Notice within the requisite time
 period.  If the Put Holder has not consummated the sale of the Shares to
 such third party within such time period, the Call Holder shall have the
 right to exercise its Call Option with respect to the Shares in accordance
 with the terms of this Article V, provided, that, notwithstanding anything
 to the contrary herein, the Call Price for the Shares shall be the lesser of
 (i) the Average Market Price on the Call Exercise Date, (ii) the Average
 Market Price on the 45th calendar day after the failure of the Call Holder
 to deliver an Acceptance Notice and (iii) $0.0175.

           SECTION 5.02  Call Option Procedure.
                         ---------------------

             The Call Holder may exercise its Call Option by providing
 written notice to the Put Holder (the "Call Notice") at any time during
 any Call Exercise Period (the date of such notice being the "Call Exercise
 Date").  The Call Notice shall constitute an irrevocable offer by the Call
 Holder to exercise its Call Option and to purchase the Shares.  Upon receipt
 of the Call Notice, the Put Holder shall be obligated to sell the Shares to
 the Call Holder pursuant to the terms of this Article V.  The Call Notice
 shall specify the applicable Call Price and the aggregate price to be paid
 for the Shares.  The Call Price shall be the applicable Call Price for the
 Call Exercise Period that includes the Call Exercise Date, regardless of
 when the Call Price is actually paid, and the aggregate price to be paid for
 the Shares shall be the applicable Call Price multiplied by the number of
 Shares.

           SECTION 5.03  Call Option Closing.
                         -------------------

              Completion of the sale and purchase of the Shares following
 the exercise of the Call Option shall take place no later than five Business
 Days after the Call Exercise Date thereof (the "Call Closing").  At the Call
 Closing and upon payment of the Call Price, the Put Holder shall deliver
 to the Call Holder or to one or more assignees or substitute purchasers
 designated by it, certificates representing the Shares, which certificates
 shall be duly endorsed in blank or, in lieu thereof, shall have affixed
 thereto stock powers executed in blank, and in proper form for transfer.
 The Call Price for the Shares shall be payable to the Put Holder in cash in
 U.S. dollars by wire transfer of immediately available funds to an account
 or accounts, as appropriate, designated in writing by the Put Holder to
 the Call Holder not less than two Business Days prior to the Call Closing.
 Failure to pay the Call Price pursuant to this Section 5.03 shall be deemed
 an event of default under this Agreement.

                                 ARTICLE VI

               REPRESENTATIONS AND WARRANTIES OF THE PUT HOLDER

           The Put Holder hereby represents and warrants to the Call Holder
 as follows:

           SECTION 6.01  Organization, Authority and Qualification
                         -----------------------------------------

              The Put Holder is duly organized, validly existing and in good
 standing under the laws of its jurisdiction of organization and has all
 necessary power and authority to enter into this Agreement, and to carry out
 its obligations hereunder and to consummate the transactions contemplated
 hereby.  The execution and delivery of this Agreement by the Put Holder, the
 performance by it of its obligations hereunder and the consummation by it
 of the transactions contemplated hereby have been duly authorized by all
 requisite action on the part of the Put Holder.  This Agreement has been
 duly executed and delivered by the Put Holder, and this Agreement
 constitutes a legal, valid and binding obligation of the Put Holder
 enforceable against the Put Holder in accordance with its terms.

           SECTION 6.02  Ownership of the Shares and the Note.
                         ------------------------------------

           (a)  The Put Holder is or will be at the time of the Put Closing
 or the Call Closing, as the case may be, the record and beneficial owner
 of the Shares, free and clear of all security interests, pledges, mortgages,
 liens, charges, encumbrances, adverse claims or restrictions of any
 kind, including any restrictions on the voting or transfer thereof (the
 "Encumbrances").  Upon the sale of the Shares to the Call Holder pursuant
 to this Agreement, the Call Holder will own the Shares free and clear of
 all Encumbrances.

           (b)  The Put Holder holds and owns the Note, free and clear of all
 Encumbrances.  Upon the sale of the Debt to the Call Holder pursuant to this
 Agreement, the Call Holder will own the Debt purchased free and clear of all
 Encumbrances.

           SECTION 6.03  No Conflict.
                         -----------

              The execution, delivery and performance of this Agreement by
 the Put Holder at the time of any Put Closing or Call Closing, as the case
 may be, do not and will not (a) violate, conflict with or result in the
 breach of any of the Put Holder's organizational documents, (b) conflict
 with or violate any law, rule or regulation or Governmental Order applicable
 to the Put Holder or any of its assets, properties or businesses, or
 (c) conflict with, result in any breach of, constitute a default (or event
 which with the giving of notice or lapse of time, or both, would become a
 default) under, require any consent under, or give to others any rights of
 termination, amendment, acceleration, suspension, revocation or cancellation
 of, or result in the creation of any Encumbrance on any of the Shares or the
 Debt or on any of the assets or properties of, or result in the creation of
 any rights with respect to the securities of, the Put Holder pursuant to any
 note, bond, mortgage or indenture, contract, agreement, lease, sublease,
 license, permit, franchise or other instrument or arrangement to which the
 Put Holder is a party or by which any of the Shares or the Note or any of
 such assets or properties is bound or affected.

                                 ARTICLE VII

              REPRESENTATIONS AND WARRANTIES OF THE CALL HOLDER

           The Call Holder hereby represents and warrants to the Put Holder
 as follows:

           SECTION 7.01  Organization, Authority and Qualification.
                         -----------------------------------------

              The Call Holder is duly organized, validly existing and in
 good standing under the laws of its jurisdiction of organization and has all
 necessary power and authority to enter into this Agreement, and to carry out
 its obligations hereunder and to consummate the transactions contemplated
 hereby.  The execution and delivery of this Agreement by the Call Holder,
 the performance by it of its obligations hereunder and the consummation by
 it of the transactions contemplated hereby have been duly authorized by all
 requisite action on the part of the Call Holder.  This Agreement has been
 duly executed and delivered by the Call Holder, and this Agreement
 constitutes a legal, valid and binding obligation of the Call Holder
 enforceable against the Call Holder in accordance with its terms.

           SECTION 7.02  No Conflict.
                         -----------

              The execution, delivery and performance of this Agreement by
 the Call Holder do not and will not (a) violate, conflict with or result in
 the breach of any provision of the Call Holder's organizational documents,
 (b) conflict with or violate any law, rule or regulation or Governmental
 Order applicable to the Call Holder or any of its assets, properties or
 businesses, or (c) conflict with, result in any breach of, constitute a
 default (or event which with the giving of notice or lapse of time, or both,
 would become a default) under, require any consent under, or give to others
 any rights of termination, amendment, acceleration, suspension, revocation
 or cancellation of, or result in the creation of any Encumbrance on any of
 the assets or properties of, or result in the creation of any rights with
 respect to the securities of, the Call Holder pursuant to any note, bond,
 mortgage or indenture, contract, agreement, lease, sublease, license,
 permit, franchise or other instrument or arrangement to which the Call
 Holder is a party or by which the Call Holder or any of such assets or
 properties is bound or affected.

           SECTION 7.03  Financing.
                         ---------

              The Call Holder has available, and will have available, at all
 times during the Put Exercise Period, all of the funds required to perform
 its obligations under this Agreement.

                                ARTICLE VIII

                     COVENANTS AND ADDITIONAL AGREEMENTS

           SECTION 8.01  DB Designees.
                         ------------

             Effective upon the satisfaction by Prime of all of the
 undertakings set forth in Section 5.1 of the Pledge Agreement and subject
 to the immediately following sentence of this Section 8.01, the Put Holder
 hereby (i) assigns its right under Section 2.1 of the Stockholders Agreement
 to designate three members of the Board to the Company  (the "DB Designees
 Assignment") and (ii) shall cause Steve Roberts and Roderick Glen MacMullin
 to resign as members of the Board.  If an Event of Default occurs, then, at
 the option of the Put Holder, the DB Designees Assignment shall cease and
 the Put Holder shall have the right under Section 2.1 of the Stockholders
 Agreement to designate three members of the Board until (i) the earlier of
 the satisfaction of the Call Holder's obligations under the Share Put Option
 and (ii) the satisfaction of the Call Holder's obligations under the Call
 Option, at which time the Put Holder shall irrevocably assign its right
 under Section 2.1 of the Stockholders Agreement to designate three members
 of the Board to the Company.  For the avoidance of doubt, the nominees
 selected by the Company pursuant to this Section 8.01 shall be deemed DB
 Designees solely for the purposes of the Stockholders Agreement and for
 no other purposes.

           SECTION 8.02  Essar Designees.
                         ---------------

               If an Event of Default occurs, then the Call Holder shall,
 at the option of the Put Holder, assign its right under Section 2.1 of
 the Stockholders Agreement to designate three members of the Board to
 the Company (the "Essar Designees Assignment") and shall cause the then
 current Essar Designees to resign as members of the Board.  The Essar
 Designees Assignment shall cease and the Call Holder shall have the right
 under Section 2.1 of the Stockholders Agreement to designate three members
 of the Board when such Event of Default ceases to be in effect (it being
 understood that an Event of Default will cease to be in effect for purposes
 of this Section 8.02 upon the satisfaction in full of all of the Call
 Holder's monetary obligations hereunder either with cash or through exercise
 of the collateral under the Pledge Agreement) .  For the avoidance of doubt,
 the nominees selected by the Company pursuant to this Section 8.02 shall be
 deemed Essar Designees solely for the purposes of the Stockholders Agreement
 and for no other purposes.

           SECTION 8.03  Stockholders Agreement Amendment.
                         --------------------------------

             The Put Holder and the Call Holder agree to be party to and to
 execute such amendments to the Stockholders Agreement (or a restated and
 amended Stockholders Agreement, as the case may be) as may be necessary (a)
 to memorialize the Put Holder's and the Call Holder's agreement to assign
 their right to designate any members of the Board to the Company pursuant to
 Sections 8.01 and 8.02 hereof and (b) to carry out the intent and purposes
 of this Agreement and the transactions contemplated hereby.

           SECTION 8.04  Adjustment of Shares; Adjustment of Purchase Price.
                         --------------------------------------------------

            If the Company, at any time while this Agreement is in effect,
 shall change any of the securities as to which purchase rights under this
 Agreement exist into the same or a different number of securities of any
 class or classes by reclassification (including any combination, exchange
 or subdivision of such securities) or by way of dividend or distribution,
 or otherwise, the purchase rights hereunder shall thereafter represent the
 right to acquire such number and kind of securities as would have been
 deliverable as the result of such change with respect to the securities
 which were subject to the purchase rights under this Agreement immediately
 prior to such reclassification or other change and the applicable exercise
 price therefor shall be appropriately adjusted.

           SECTION 8.05  Put Holder's Prohibition on Trading.
                         -----------------------------------

           Except as otherwise provided for in Section 5.01(c) of this
 Agreement, the Put Holder covenants and agrees that from the date hereof and
 until the termination of the Call Exercise Period none of the Put Holder,
 any of its Affiliates or any Person acting at the instruction of or in
 concert with the Put Holder will sell, transfer or otherwise dispose of the
 Shares without the express written consent of the Call Holder, which consent
 may be granted or withheld in the sole discretion of the Call Holder.
 Furthermore, none of the Put Holder, any of its Affiliates or any Person
 acting at the instruction of or in concert with the Put Holder will sell,
 transfer or dispose of any of the Common Stock acquired by the Put Holder
 upon the exercise of the Warrants which are not subject to the Share Put
 Option until the earlier of: (a) the Share Put Option or the Call Option
 having been exercised pursuant to the terms of this Agreement and (b)
 January 1, 2006.  For the avoidance of doubt, nothing in this Section 8.05
 shall be construed to prevent Deutsche Bank AG or its Affiliates from
 acquiring, holding, disposing or selling any of the publicly traded shares
 of the Company, other than the Shares and the Common Stock acquired by the
 Put Holder upon the exercise of the Warrants which are not subject to the
 Share Put Option.

           SECTION 8.06  Call Holder's Prohibition on Trading.
                         ------------------------------------

              The Call Holder covenants and agrees that from the date hereof
 and until the termination of the Call Exercise Period none of the Call
 Holder, any of its Affiliates or any Person acting at the instruction of or
 in concert with the Call Holder will sell, transfer or otherwise dispose of
 any shares of the Common Stock without the express written consent of the
 Put Holder, which consent may be granted or withheld in the sole discretion
 of the Put Holder.

           SECTION 8.07  Affiliate Transactions.
                         ----------------------

              The Call Holder and the Put Holder mutually hereby covenant
 and agree not to, and to cause each of their respective Affiliates not
 to, engage in any transaction with the Company or any subsidiary or
 Affiliate of the Company unless each such transaction is on terms no
 less favorable to the Company than could be obtained on an arm's length,
 commercially reasonable basis from unrelated parties.

           SECTION 8.08  Listing Requirement.
                         -------------------

              The Call Holder covenants and agrees that none of the Call
 Holder, any of its Affiliates or any Person acting at the instruction
 of or in concert with the Call Holder shall take any action nor shall
 they cause the Company to take any action that would cause the delisting
 of the Common Stock from the applicable stock exchange(s) under which
 such Common Stock is listed or the deregistration of the Common Stock
 currently registered pursuant to the securities laws of the United States.

           SECTION 8.09  Further Action.
                         --------------

              Each of the Put Holder and the Call Holder shall use their
 reasonable best efforts to take, or cause to be taken, all appropriate
 action, do or be done all things necessary, proper or advisable under
 applicable law, and execute and deliver such documents and other papers,
 as may be required to consummate the transactions contemplated by this
 Agreement and the Pledge Agreement as promptly as practicable after the
 date hereof.

                                 ARTICLE IX

                                 TERMINATION

           SECTION 9.01  Termination
                         -----------

           (a)   This Agreement may be terminated at any time by the written
 consent of the Put Holder and the Call Holder.

           (b)   This Agreement shall automatically terminate upon the
 expiration of the Share Put Exercise Period, provided that no Put Option
 or Call Option has been exercised.

           (c)   In the event of a termination of this Agreement, this
 Agreement shall forthwith become void and have no effect without any
 liability or obligation on the part of any party hereto, provided that
 nothing in this Section 9.01(c) shall relieve a party from liability for
 fraud or a willful breach of this Agreement and such party shall be fully
 liable for any and all liabilities and damages incurred or suffered by the
 other party as a result of such breach.

                                  ARTICLE X

                                MISCELLANEOUS

           SECTION 10.01  Severability.
                          ------------

              If any term or other provision of this Agreement is invalid,
 illegal or incapable of being enforced by any rule of law, or public policy,
 all other conditions and provisions of this Agreement shall nevertheless
 remain in full force and effect. Upon such determination that any term or
 other provision is invalid, illegal or incapable of being enforced, the
 parties hereto shall negotiate in good faith to modify this Agreement so
 as to effect the original intent of the parties as closely as possible in a
 mutually acceptable manner in order that the terms of this Agreement remain
 as originally contemplated to the fullest extent possible.

           SECTION 10.02  Survival of Representations and Warranties and
                          ----------------------------------------------
                          Covenants
                          ---------

              The representations and warranties of the Call Holder and
 the Put Holder as provided in Articles VI and VII, respectively, and the
 covenants of the Put Holder and the Call Holder under Sections 8.01, 8.02
 and 8.03, shall survive any Put Closing or Call Closing, as the case may
 be, until the expiration of the applicable statute of limitations.

           SECTION 10.03  Regulatory and Other Authorizations; Notices and
                          ------------------------------------------------
                          Consents
                          --------

             Each of the Put Holder and the Call Holder agrees to use
 reasonable efforts to obtain all authorizations, consents, orders and
 approvals of all Governmental Authorities that may be or become necessary
 for the execution and delivery of, and the performance of its obligations
 pursuant to, this Agreement and will cooperate fully with the other in
 promptly seeking to obtain all such authorizations, consents, orders and
 approvals.

           SECTION 10.04  Specific Performance.
                          --------------------

              The parties hereto agree that irreparable damage would occur in
 the event any provision of this Agreement was not performed in accordance
 with the terms hereof and that the parties shall be entitled to specific
 performance of the terms hereof, in addition to any other remedy at law or
 in equity.

           SECTION 10.05  Entire Agreement.
                          ----------------

              This Agreement (and any agreements entered into by the Call
 Holder and Put Holder pursuant to Article IV) constitutes the entire
 agreement between the Call Holder and the Put Holder with respect to
 the subject matter hereof and supersedes all prior agreements and
 understandings, both written and oral, between the Call Holder and
 the Put Holder with respect to the subject matter hereof.

           SECTION 10.06  Amendment; Waiver
                          -----------------

           (a)  Any provision of this Agreement may be amended or waived if,
 and only if, such amendment or waiver is in writing and signed, in the case
 of an amendment, by the Put Holder and the Call Holder or in the case of a
 waiver, by the party against whom the waiver is to be effective.

           (b)  No failure or delay by any party in exercising any right,
 power or privilege hereunder shall operate as a waiver thereof nor shall any
 single or partial exercise thereof preclude any other or further exercise
 thereof or the exercise of any other right, power or privilege. The rights
 and remedies herein provided shall be cumulative and not exclusive of any
 rights or remedies provided by law.

           SECTION 10.07  Governing Law.
                          -------------

             This Agreement shall be governed by, and construed in accordance
 with, the laws of the State of New York, without regard to principles of
 conflicts of laws requiring the application of the law of another state.
 Each party hereto hereby irrevocably submits to the non-exclusive
 jurisdiction of any United States federal or New York State court sitting in
 New York City in any action or proceeding arising out of or relating to this
 Agreement and hereby irrevocably agrees that all claims in respect of such
 action or proceeding may be heard and determined in any such court and
 irrevocably waives any objection it may now or hereafter have as to the
 venue of any such suit, action or proceeding brought in such a court or that
 such court is an inconvenient forum.

           SECTION 10.08  Expenses
                          --------

              All costs and expenses incurred in connection with this
 Agreement and the transactions contemplated hereby, including fees and
 disbursements of counsel, financial advisors and accountants, shall be
 paid by the party incurring such costs and expenses.

           SECTION 10.09  Notices.
                          -------

              All notices, requests, claims, demands and other communications
 hereunder shall be in writing and shall be given or made (and shall be
 deemed to have been duly given or made upon receipt) by delivery in person,
 by courier service, by facsimile or by registered or certified mail (postage
 prepaid, return receipt requested) to the respective parties at the
 following addresses (or at such other address for a party as shall be
 specified in a notice given in accordance with this Section 11.09):

           (a)  if to the Call Holder

                Essar Global Limited
                c/o Essar Group
                145 E. 48th Street
                New York, NY 10017
                Fax: 212-758-5860
                Attention: Madhu S. Vappuluri

      with copy to:
                McGuire, Craddock & Strother, P.C.
                3550 Lincoln Plaza
                500 North Akard
                Dallas, Texas 75201
                Attention: Steven D. Davidson

           (b)  if to the Put Holder:

                DB Advisors, L.L.C.
                280 Park Avenue
                New York, NY 10017
                Fax: 212-797-4562
                Attention: Counsel

      with copy to:
                Shearman & Sterling LLP
                599 Lexington Avenue
                New York, NY 10022-6069
                Fax: 212-848-7179
                Attention: Stephen M. Besen

      with copy to:
                Deutsche Bank AG
                c/o DB Advisors, L.L.C.
                280 Park Avenue
                New York, NY 10017
                Fax: 212-454-0969
                Attention: Paul Bigler

           SECTION 10.10  Public Announcements.
                          --------------------

              Except as may be required by applicable domestic or foreign
 statute, law (including common law), ordinance, rule or regulation,
 obligation pursuant to any listing agreement with or rule of any applicable
 stock exchange, no party to this Agreement shall make, or cause to be made,
 any press release or public announcement in respect of this Agreement or
 the transactions contemplated hereby or otherwise communicate with any news
 media without the prior consultation of the other party, and the parties
 shall provide each other the opportunity to review and comment upon, any
 press release or other public statements with respect to the transaction
 and shall not issue any such press release or make any such public
 statement prior to such consultation.

           SECTION 10.11  Headings
                          --------

              The descriptive headings contained in this Agreement are for
 convenience of reference only and shall not affect in any way the meaning
 or interpretation of this Agreement.

           SECTION 10.12  Assignment
                          ----------

              Neither this Agreement, nor any right, obligation or interest
 hereunder may be assigned or otherwise transferred or disposed of, whether
 by operation of law, security or otherwise, without, in the case of an
 assignment by the Call Holder, the written consent of the Put Holder
 (which consent may be granted or withheld in the sole discretion of the Put
 Holder), and in the case of an assignment by the Put Holder, the written
 consent of the Call Holder (which consent may be granted or withheld in
 the sole discretion of the Call Holder); provided, that the Put Holder may
 assign its rights under this Agreement to an Affiliate and the Call Holder
 may assign its rights to purchase under this Agreement to an Affiliate (it
 being agreed that no such assignment shall relieve the assignor from any of
 its obligations under this Agreement).

           SECTION 10.13  No Third Party Beneficiaries.
                          ----------------------------

              This Agreement shall be binding upon and inure solely to the
 benefit of the parties hereto and its successors and permitted assigns and
 nothing herein, express or implied, is intended to or shall confer upon any
 other person any legal or equitable right, benefit or remedy of any nature
 whatsoever under or by reason of this Agreement.

           SECTION 10.14  Time of Essence.
                          ---------------

              Time shall be of the essence in performing any party's
 obligations hereunder.

           SECTION 10.15  Counterparts.
                          ------------

              This Agreement may be executed in one or more counterparts, and
 by the different parties hereto in separate counterparts, each of which when
 executed shall be deemed to be an original but all of which taken together
 shall constitute one and the same agreement.

                 [Remainder of page intentionally left blank]

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement
 to be executed as of the date first written above by its respective officers
 thereunto duly authorized.

                               DEUTSCHE BANK AG - LONDON
                               By DB ADVISORS, L.L.C. as Investment Advisor

                               By: /s/ Roger Ehrenberg
                                   -----------------------------------------
                                   Name:  Roger Ehrenberg
                                   Title: President & CEO

                               By: /s/ Jon Hitchon
                                   -----------------------------------------
                                   Name:  Jon Hitchon
                                   Title: COO - Managing Director

                               ESSAR GLOBAL LIMITED

                               By: /s/ Madhu S. Vuppuluri
                                   -----------------------------------------
                                   Name:  Madhu S. Vuppuluri
                                   Title: Executive DirectorAmended Share Repurchase Program

	

AMENDED SHARE
REPURCHASE PROGRAM 

        THIS  AGREEMENT is entered into as of August 31, 2004  between THE TALBOTS,  INC., a Delaware  corporation
(“Talbots”) and AEON (U.S.A.), INC., a Delaware corporation (“AEON USA”).

        WHEREAS,
Talbots originally initiated its share repurchase program in February 1995 and
subsequently extended such program from time to time up to the date hereof; and 

        WHEREAS,
as part of the share repurchase program, for each month in which Talbots repurchased
shares from the public shareholders, Talbots then repurchased such numbers of shares of
Common Stock from AEON USA sufficient to maintain substantially the same percentage
ownership in Talbots between AEON USA and the public shareholders, with the only exception
being the $50 million share repurchase program established by the Company in October 2001
in which AEON USA did not participate; and 

        WHEREAS,
Talbots has completed the most recent share repurchase program
and the Board of Directors of Talbots believes that it is in the best interests of Talbots
and its shareholders to extend the share repurchase program; and 

        WHEREAS,
the Board of Directors of Talbots has now authorized the expenditure of up to an
additional $50 million for the repurchase of shares of Common Stock under the amended
share repurchase program, such repurchases to be made from time to time over a two year
period (the “Program”); and 

        WHEREAS,
it is agreed that the price to AEON USA for shares repurchased from AEON USA under the
Program will continue to be the weighted average price paid to the public shareholders for
the month; 

	

        NOW,
THEREFORE, it is agreed by Talbots and AEON USA as follows: 

             1.       
          Purchase Dates. On a business day (“monthly purchase date”)
          occurring in the last five (5) calendar days of each calendar month in which
          Talbots has purchased shares of its Common Stock from the public in open market
          purchases, privately negotiated transactions or otherwise, Talbots will purchase
          from AEON USA, and AEON USA will transfer and sell to Talbots, a pro rata number
          of shares of Talbots Common Stock. 

             2.       
          Purchase Price. The purchase price to be paid by Talbots to AEON USA for
          the shares purchased from AEON USA under the Program will be equal to the
          weighted average price (excluding commissions, mark-ups, fees and other costs)
          paid by Talbots for the shares of Talbots Common Stock purchased from the public
          shareholders for such calendar month under the Program (the “Weighted
          Average Price”). 

             3.       
          Purchase Notice. At least one (1) business day before each monthly
          purchase date, Talbots will provide written notice to AEON USA by telecopy or
          otherwise of (a) the total number of shares of Talbots Common Stock purchased by
          Talbots from the public shareholders for the particular calendar month under the
          Program and the respective purchase prices of such shares purchased from the
          public shareholders, (b) the total number of shares of Talbots Common Stock to
          be purchased from AEON USA on the monthly purchase date pursuant to paragraph 1
          above, (c) the purchase price to be paid by Talbots to AEON USA determined under
          paragraph 2 above, and (d) the aggregate purchase price to be paid by Talbots to
          AEON USA for all shares to be purchased from AEON USA for such month. 

             4.       
          Payment. On each monthly purchase date Talbots will make payment to AEON
          USA for the shares being purchased from AEON USA for such month. Payment of the
          purchase price will be by wire transfer or other mutually agreed payment method. 

	

             5.       
          Transfer of AEON USA Shares. On or promptly following each monthly
          purchase date, AEON USA will deliver stock certificates to the stock transfer
          agent of Talbots with instructions to transfer the total number of Talbots
          shares of Common Stock purchased by Talbots from AEON USA for such month. AEON
          USA will also deliver to the stock transfer agent such stock powers and other
          instruments as may be necessary to give effect to such purchase. 

             6.       
          General. This Agreement is binding upon and is for the benefit of Talbots
          and AEON USA and their respective successors and assigns, and no other person or
          entity shall have any rights or benefits under this Agreement either as a third
          party beneficiary or otherwise. This Agreement may be amended by an agreement
          signed by Talbots and AEON USA. 

        IN
WITNESS WHEREOF, the parties have each signed and delivered this Agreement as of the date
set forth on the first page of this Agreement. 

			THE TALBOTS, INC.

By:  EDWARD L. LARSEN
——————————————

Name:    Edward L. Larsen
Title:      Senior Vice President, Finance,

                  Chief Financial Officer and Treasurer

			AEON (U.S.A.), INC.

By:  ISAO TSURUTA
——————————————

Name:    Isao Tsuruta
Title:     Executive Vice President

	

3

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