Document:

STOCK PLEDGE
AGREEMENT

       

      This Stock Pledge Agreement (this
“Agreement”) dated as of February 11, 2010, between Eric Takamura (“Pledgor”)
and Uzi Halevy (the “Pledgee Representative”).

       

      BACKGROUND

       

      WHEREAS, effective as of the date
hereof, those parties listed on Schedule 1 hereto
(each a “Pledgee”, together the “Pledgees”) have entered into a subscription
agreement (“Subscription Agreement”) with NuGen Mobility, Inc., a Delaware
corporation and wholly-owned subsidiary of InovaChem, Inc., a Delaware
corporation (“InovaChem”) for the purchase of an aggregate of $500,000 of common
stock, par value $0.001 per share, of InovaChem (the “Common Stock”) at a
purchase price of $0.15 per share (“Purchase Price”);

       

      WHEREAS, the Pledgor is a significant
stockholder and Chairman, Chief Executive Officer and President of
InovaChem;

      

      WHEREAS, the Pledgor has agreed to
pledge certain securities of InovaChem to secure certain anti-dilution rights
granted to the Pledgees; and

      

      WHEREAS,
in order to induce the Pledgees to make an aggregate investment of
$500,000 in InovaChem and enter into the Subscription Agreement, Pledgor has
agreed to pledge and grant a security interest in the collateral described
herein to the Pledgees on the terms and conditions set forth
herein.

      

      NOW, THEREFORE, in consideration of the
premises and for other good and valuable consideration the receipt of which is
hereby acknowledged, the parties hereto agree as follows:

      

      1.           Pledge and Grant of Security
Interest.  To secure the full and punctual payment of shares to
each Pledgee in the event of a Dilution Event (as defined below), Pledgor hereby
pledges, assigns, hypothecates, transfers and grants a security interest to the
Pledgees, pro rata as set forth on Schedule 1 hereto, in
1,000,000 shares of Common Stock held by Pledgor (the
“Collateral”).

       

      2.           Delivery of
Collateral.  All certificates representing or evidencing the
Collateral shall be delivered to and held by Gil Melman (the “Collateral
Holder”) at Selman Munson & Lerner P.C., Two Memorial City Plaza, 820
Gessner, Suite 800, Houston, TX 77024 on behalf of the Pledgees and shall be
accompanied by duly executed instruments of transfer or assignment in blank, all
in form and substance satisfactory to the Pledgee Representative. Pledgor hereby
authorizes InovaChem upon demand by the Pledgee Representative to deliver any
certificates, instruments or other distributions issued in connection with the
Collateral directly to the Collateral Holder, in each case to be held by the
Collateral Holder, subject to the terms hereof.  Upon the occurrence
of a Dilution Event, the Pledgee Representative shall have the right, during
such time in the Pledgee Representative’s discretion and with notice to the
Pledgor, to transfer to or to register in the names of the Pledgees or any of
their nominees the Collateral pro ratably in accordance with their respective
interest therein.

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

       

      3.           Anti Dilution Rights;
Dilution Event.

       

      (a) If, at any time on or after
February 11, 2010 (the “Original Issue Date”) and prior to August 11, 2011,
InovaChem issues any Common Stock or any securities convertible into the Common
Stock (“Convertible Securities”), other than an Excepted Issuance (as defined
below), for a consideration per share less than $0.15 per share (a “Dilution
Event”), then immediately upon such issuance and thereafter successively upon
each such issuance, each Pledgee shall have a pro rata right, in proportion to
such Pledgee’s investment in InovaChem as of the date hereof, to receive from
the Collateral, that number of additional shares that would have been issued to
such Pledgee had the Purchase Price been reduced to such other lower per share
price.  For purposes of this Agreement, an Excepted Issuance shall
include issuances:

       

      (i)           upon
conversion of any shares of series preferred stock of InovaChem outstanding as
of the Original Issue Date;

      (ii)    
     pursuant to the exercise of Convertible Securities
outstanding as of the Original Issue Date;

      (iii)         for
full or partial consideration in connection with a strategic merger,
acquisition, consolidation or purchase of substantially all of the securities or
assets of a corporation or other entity approved by InovaChem’s Board of
Directors (the “Board”);

      (iv)        in
connection with strategic license agreements and other partnering arrangements
so long as such issuances are not for the purpose of raising capital and are
approved by the Board; and

      (v)         shares
of Common Stock and/or options, warrants or other Common Stock purchase rights
and the Common Stock issued pursuant to such options, warrants or other rights
(as adjusted for any stock dividends, combinations, splits, recapitalizations
and the like after the Original Issue Date) to employees, officers or directors
of, or consultants or advisors to, InovaChem pursuant to equity incentive plans
or grants that are approved by the Board.

      (b)       No
fractional shares of Common Stock shall be issued upon a Dilution
Event.  If a Pledgee has a right to a fractional share pursuant to
this Section 3(a), the Pledgor shall, in lieu of issuing any fractional share,
pay cash equal to the product of such fraction multiplied by the fair market
value of one share of Common Stock (as determined by the Board) on the date of
the Dilution Event.

       

      4.           Representations and
Warranties of Pledgor.  Pledgor hereby represents and warrants
to each Pledgee that:

       

      (a)           The
execution, delivery and performance by Pledgor of this Agreement and the pledge
of the Collateral hereunder do not and will not result in any violation of any
agreement, indenture, instrument, license, judgment, decree, order, law,
statute, ordinance or other governmental rule or regulation applicable to
Pledgor.

       

      (b)           This
Agreement constitutes the legal, valid, and binding obligation of Pledgor
enforceable against Pledgor in accordance with its terms.

       

      (c)           Pledgor
is the direct and beneficial owner of each share of the Collateral.

       

      (d)           All
of the shares of the Collateral have been duly authorized, validly issued and
are fully paid and nonassessable.

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

       

      (e)           No
consent or approval of any person, corporation, governmental body, regulatory
authority or other entity, is or will be necessary for (i) the execution,
delivery and performance of this Agreement, (ii) the exercise by any Pledgee of
any rights with respect to the Collateral or (iii) the pledge and assignment of,
and the grant of a security interest in, the Collateral hereunder.

       

      (f)       
    Pledgor has the requisite power and authority to enter
into this Agreement and to pledge and assign the Collateral to the Pledgees in
accordance with the terms of this Agreement.

       

      (h)           Pledgor
owns the Collateral and, except for the pledge and security interest granted to
the Pledgees, the Collateral shall be free and clear of any other security
interest, pledge, claim, lien, charge, hypothecation, assignment, offset or
encumbrance whatsoever, other than those imposed under applicable securities
laws (collectively, “Liens”).

       

      5.           Covenants.  Pledgor
covenants that:

       

      (a)           Pledgor
will not sell, assign, transfer, convey, or otherwise dispose of its rights in
or to the Collateral or any interest therein; nor create, incur or permit to
exist any Lien whatsoever with respect to any of the Collateral or the proceeds
thereof other than that created hereby.

       

      (b)           Pledgor
shall at any time, and from time to time, at its own expense, upon the written
request of the Pledgee Representative, execute and deliver such further
documents and do such further acts and things as the Pledgee Representative may
reasonably request in order to effect the purposes of this Agreement including,
but without limitation, delivering to the Collateral Holder upon the occurrence
of a Dilution Event, irrevocable proxies in respect of the Collateral in form
satisfactory to the Pledgee Representative.

       

      6.           Voting Rights and
Dividends.  Pledgor shall retain all voting control and all
other rights and incidents thereto until the occurrence of a Dilution
Event.  Until the occurrence of a Dilution Event, Pledgor shall retain the
right to receive and retain any and all payments, proceeds, dividends,
distributions, monies, compensation, property, assets, instruments or rights,
other than stock dividends or dividends or other amounts payable under or in
connection with any recapitalization, restructuring or other non-ordinary course
event, paid, issued or distributed from time to time in respect of the
Collateral pledged by the Pledgor.

       

      7.           No
Waiver.  Any and all rights of each Pledgee with respect to the
Liens granted under this Agreement shall continue unimpaired, and Pledgor shall
be and remain obligated in accordance with the terms hereof, notwithstanding (a)
the bankruptcy, insolvency or reorganization of Pledgor or (b) the release or
substitution of any item of the Collateral at any time, or of any rights or
interests therein.  Pledgor hereby waives all notice of any such
delay, extension, release, substitution, renewal, compromise or other
indulgence, and hereby consents to be bound hereby as fully and effectively as
if Pledgor had expressly agreed thereto in advance.  No delay or
extension of time by the Pledgee Representative in exercising any power of sale,
option or other right or remedy hereunder, and no failure by the Pledgee
Representative to give notice or make demand, shall constitute a waiver thereof,
or limit, impair or prejudice any Pledgee’s right to take any action against
Pledgor or to exercise any other power of sale, option or any other right or
remedy.

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      8.           Waivers.

       

      (a)           EACH
PARTY HERETO HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO OR ANY OTHER AGREEMENT EXECUTED OR DELIVERED BY THEM IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE AND EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE
WAIVER OF ITS RIGHT TO TRIAL BY JURY.

      

      9.           Release of Pledged Shares
from Pledge.   Upon the termination or expiration of this
Agreement, all certificates evidencing Collateral and all documents and
instruments of transfer or assignment related thereto shall be promptly returned
to Pledgor, whereupon all rights of the Pledgees to the Collateral hereunder
shall be terminated.

       

      10.         Miscellaneous.

       

      (a)           This
Agreement constitutes the entire and final agreement among the parties with
respect to the subject matter hereof and may not be changed, terminated or
otherwise varied except by a writing duly executed by the parties
hereto.

       

      (b)           No
waiver of any term or condition of this Agreement, whether by delay, omission or
otherwise, shall be effective unless in writing and signed by the party sought
to be charged, and then such waiver shall be effective only in the specific
instance and for the purpose for which given.

       

      (c)           The
Pledgor hereby irrevocably appoints the Pledgee Representative as the Pledgor's
attorney-in-fact, with full authority in the place and stead of the Pledgor and
in the name of the Pledgor, or otherwise, from time to time at Pledgee
Representative's discretion, to take any action and to execute any instrument
that Pledgee Representative may reasonably deem necessary or advisable to
accomplish the purposes of this Agreement.  The foregoing power of
attorney, being coupled with an interest, is irrevocable; provided, that the
foregoing power of attorney shall terminate upon the termination or expiration
of this Agreement.

       

      (d)           In
the event that any provision of this Agreement or the application thereof to
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the
extent that it may conflict therewith and shall be deemed modified to conform to
such statute, regulation or rule of law, and the remainder of this Agreement and
the application of any such invalid or unenforceable provision to parties,
jurisdictions, or circumstances other than to whom or to which it is held
invalid or unenforceable shall not be affected thereby, nor shall same affect
the validity or enforceability of any other provision of this
Agreement.

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

       

      (e)           This
Agreement shall be binding upon Pledgor, and Pledgor’s successors and assigns,
and shall inure to the benefit of the Pledgees and their successors and
assigns.

       

      (f)   
        Any notice or other
communication required or permitted pursuant to this Agreement shall be given in
accordance with the Purchase Agreement.

       

      (g)           This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Texas.

       

      (h)           This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which when taken together shall constitute one and
the same agreement.  Any signature delivered by a party by facsimile
transmission shall be deemed an original signature hereto.

       

      [SIGNATURE
PAGE FOLLOWS]

       

      
        
          
          

        

        
          -5-

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, the
parties have duly executed this Agreement as of the date written
above.

       

      
        
          
            
              
                	
                        PLEDGOR:

                      
	 
      
	
                        /s/
      Eric Takamura

                      
	
                        Eric
      Takamura

                      
	 
      
	
                        PLEDGEE
      REPRESENTATIVE:

                      
	 
      
	
                        /s/
      Uzi Halevy

                      
	
                        Uzi
      Halevy, on behalf of the
Pledgees

                      

              

            

          

        

      

       

      The
undersigned hereby acknowledges and consents to the Stock Pledge Agreement and
agrees to take all steps necessary or desirable to recognize the Pledgees as the
beneficial owners of the Collateral upon notice from the Pledgee Representative
that a Dilution Event has occurred in accordance with the terms and provisions
of this Stock Pledge Agreement.

       

      
        
          
            	
                    INOVACHEM,
      INC.

                  
	 
      	 
      
	
                    By: 

                  	
                    Eric Takamura

                  
	
                    Eric
      Takamura

                  
	
                    Chief
      Executive Officer and President

                  

          

           

          [Signature
Page to Stock Pledge Agreement]

        

      

      
        
          
            
              
                
                  
                    
                       

                    

        
                      
                      

                      
                        

                      

                    

                    
                       

                    

                  

                

                 

                
                  SCHEDULE
1

                  

                  Lakeview
Investments, Inc,

                  Arthur L.
Schechter

                  Ariel
Leibovitz

                  Goldeneye
Partners II, Ltd.

                  3 K
Partners, Ltd.

                  Allen J.
Becker

                  Benjamin
Warren

                  ITC
Trading Company, Ltd.

                  Uzi
Halevy

                  Hershel
and Hilda Rich

                  Zeevi Hi
Tech Investments Holdings/stamp/
Twenty Rupees / India / 20RS 

    

    CONDITIONAL
GRANT AGREEMENT

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

    This
Agreement made this 30th day of October Two Thousand
One between New Generation Motors Corporation having its registered office at
44645, Guilford Drive, Suite 201, Ashburn, Virginia 20147, U.S.A. (hereinafter
referred to as "the Proposer" which expression shall unless it be repugnant to
the subject or context thereof, include its successors as assigns).

    AND

    THE ICICI
LIMITED, a public limited company incorporated under the Indian Companies Act,
1913 (7 of 1913) and having its registered office at ICICI Towers, Bandra Kurla
Complex, Bandra (E), Mumbai 400 051 (hereinafter referred to as ICICI) acting
for an on behalf of the President of India (hereinafter referred to as
Government of India or GOI).

    /stamp/
Illegible

    

    WHEREAS

    

    
      	
              A.

            	
              A
      Memorandum of Understanding (hereinafter referred to as "the TDC MOU") has
      been executed on February 23, 1999 between ICICI Limited and the
      Government of United States of America acting through United States Agency
      for International Development (hereinafter referred to as "AID") for
      undertaking a Program for Technology Development and Commercialisation
      (TDC) which is designed to accelerate the pace and quality of
      technological development and its commercialisation for products and
      production processes having applications in industry, agriculture, health
      or other areas, with special emphasis on energy efficiency and green house
      gases (GHG) emissions
mitigation.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              B.

            	
              ICICI
      shall not have any present or future beneficial interest on the reflows
      and ICICI has agreed to manage and administer the same in accordance with
      the TDC MOU for the purpose of implementing TDC
  Program.

            

    

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    

    
      	
              C.

            	
              The
      Proposer has heretofore submitted to ICICI - TDC a loan proposal
      (hereinafter called "the Proposal"). On the basis of the proposal, the
      borrower has applied to ICICI for financial assistance out of the TDC
      resources for carrying out the activities as stated in the
      proposal.

            

    

    

    
      	
              D.

            	
              In
      accordance with the provisions of the TDC MOU, the appropriate authority
      has examined and approved the proposal for financing out of the reflows
      and ICICI has agreed on behalf of GOI to provide financing for the
      implementation of the proposal on the terms and conditions hereinafter set
      forth.

            

    

    

    NOW
THEREFORE THE PARTIES HERETO AGREE AS FOLLOWS:

    

    /stamp/
ICICI LTD.

    

    
      	
              A. 

            	
              GENERAL

            

    

    

    
      	
              A1 

            	
              The
      Proposer shall be bound as herein
provided.

            

    

    

    
      	
              A2

            	
              The
      Proposal dated June 07, 2001 is incorporated by reference and made a part
      of this Agreement provided that if any provision of the said proposal is
      inconsistent with any other provision of this Agreement, the provisions
      otherwise set for in this Agreement shall
  prevail.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              A3

            	
              All
      financial commitments, financial exchange and financial obligation would
      be only between the Proposer and ICICI, during the tenure of the agreement
      in the event of commercialisation or otherwise of the project in India and
      abroad.

            

    

    

    
      	
              B.

            	
              PROJECT
      FINANCING

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              B1

            	
              ICICI
      hereby agrees to finance, by Conditional Grant, the implementation of the
      Proposal up to a maximum sum of US$ 700,000 or 50% of the actual
      expenditure on the project, whichever is less. The Approved Proposal
      Budget as contemplated is set forth in Annex A
  hereto.

            

    

    

    
      	
              B1.

            	
              The
      portion of the actual expenditure on the project which ICICI provides to
      the Proposer by way of Conditional Grant shall hereinafter be described as
      “Conditional Grant’.

            

    

    

    
      	
              B2.

            	
              The
      Proposer shall provide in timely fashion his contribution as budgeted in
      Annex A and any additional finance required for the development of the
      Product.

            

    

    

    
      	
              B3

            	
              ICICI
      shall under no circumstances be liable for any loss, compensation or
      damage to the Proposer or any third party in connection with such project
      financing or Conditional Grant in any manner
  whatsoever.

            

    

    

    /stamp/
ICICI LTD.

    

    
      	
              C.

            	
              PAYMENTS
      TO ICICI BY THE PROPOSER

            

    

    

    
      	
              C1

            	
              The
      Proposer shall inform ICICI in writing as soon as the Commercialisation
      takes place.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              C2

            	
              The
      proposer upon successful commercialisation of the project shall make
      payment to the ICICI an amount equivalent to two hundred percent of
      conditional grant referred to in subsection B1 above, by way of fixed
      royalty on sales. "Successful Commercialization" is defined as achieving
      production and sales of the product developed by utilizing the assistance.
      The schedule as described in Annex B is based on the projected sales
      indicated in the proposal. In case the actual sales deviate substantially,
      the royalty schedule would be refixed
  accordingly.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              C3

            	
              i.

            	
              The
      Proposer shall not, without the prior written permission of ICICI, transfer
      by way of sale, lease, license or by conducting arrangement or any other
      manner whatsoever the Product or any improvement, modification, extension
      thereof, whether standing alone or incorporated into or co-joined with
      other products and patent rights if any, to any third party including
      their subsidiary, holding company/companies under the same management
      (collectively referred to as
  'transferee')

            

    

    

    
      	
               
      

            	
              ii.

            	
              In
      the event mentioned in sub section C3 i. above, the Proposer shall pay to
      ICICI the amount equivalent to 200 percent of the Conditional Grant on the
      basis of the maximum market price of such Product (and not the gross
      annual sales) as determined by
ICICI.

            

    

    

    
      	
               
      

            	
              iii.

            	
              If
      the Proposer receives a lumpsum payment from the transferee, then the
      Proposer shall immediately, but not later than7 days from the receipt of
      such payment, pay the amount equivalent to 200 percent of the Conditional
      Grant.

            

    

    

    /stamp/
ICICI LTD.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              iv.

            	
              In
      the event of the Proposer receiving payment in instalments from the
      transferee, the Proposer shall pay all such receipts to ICICI until a sum
      equivalent to 200 percent of the Conditional Grant is paid to ICICI. ICICI
      may require the Proposer to issue an irrevocable mandate or pay order to
      the transferee to make payments directly to ICICI a suitable term to this
      effect will be incorporated by the Proposer in any arrangement to be
      entered between the Proposer and the
transferee.

            

    

    

    
      	
              C4

            	
              The
      total liability of the Proposer under sub-sections C2 and C3 above shall
      not exceed an amount equivalent to 200 percent of the total Conditional
      Grant disbursed to the Proposer.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document. 

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              C5

            	
              Notwithstanding
      anything to the contrary contained heretoabove, the Proposer hereby
      specifically undertakes that if any part of the Conditional Grant or any
      goods or services financed therefrom are not supported by valid
      documentation or are not made or used in accordance with this Agreement
      notwithstanding the availability of any other remedies under this
      Agreement, ICICI shall have the option to require the Proposer to refund
      the amount of such Conditional Grant within 30 days from the date of
      demand.

            

    

    

    
      	
              C6

            	
              All
      the late payments shall bear interest @ 10% percent p.a. from the date of
      default until payment is received by the
ICICI.

            

    

    

    
      	
              C7

            	
              The
      Conditional Grant and other monies in respect of the Conditional Grant
      shall be secured by a first charge on all the company's intellectual
      property/ patent and modifications therein resulting directly from the
      conditional grant funding in such form as may be required by ICICI. Any
      improvement, modification, extension thereof whether standing alone or
      incorporated into or cojoined with other products and patents thereof
      world also be covered under the security. The Company shall ensure all
      legal compliances as required under the law of the place where the said
      intellectual property in which security interest is created in favour of
      ICICI is registered and shall further take all necessary steps for
      perfection of the said security as required

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    /stamp/
ICICI LTD

     

    in law or otherwise to the satisfaction of ICICI. The Company shall
duly intimate ICICI for any such compliances with respect to the perfection of
the security interest so created in its intellectual property in favour of ICICI
which is required to be undertaken by ICICI in capacity of Lender.

    

    
      	
              D

            	
              APPLICATION
      OF FUNDS

            

    

    

    
      	
              D1

            	
              The
      Conditional Grant shall be utilised by the Proposer for acquiring goods
      and services and for other expenses relating to the project in accordance
      with the procurement source and other requirements contained in Annex C
      hereto.

            

    

    

    
      	
              D2

            	
              Machinery
      or equipment purchased in whole or in part with the Conditional Grant
      shall belong to the Proposer, but shall nonetheless be clearly identified
      and used only for Proposal purpose, unless ICICI otherwise permits in
      writing. The Proposer shall insure and maintain all such equipment and
      machinery and shall exercise reasonable care in its
  use.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              D3

            	
              i.

            	
              The
      Proposer shall not sell, give on lease, license to conduct, mortgage,
      charge or otherwise dispose off the said machinery or equipment except
      with the prior permission in writing from
ICICI.

            

    

     

    
      	
               
      

            	
              ii.

            	
              In
      the event of the Proposer selling, giving on lease, licensing to conduct,
      mortgaging, charging or otherwise disposing off the machinery and
      equipment financed out of the Conditional Grant after obtaining such
      permission from ICICI to the extent of 200 percent of the Conditional
      Grant

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              iii.

            	
              If
      the Proposer elects to retain the machinery and equipment financed out of
      the Conditional Grant and intends to utilise the same for any purpose
      other than specified in the Proposal (after prior written permission of
      ICICI), if so required by ICICI, the Proposer shall be bound to pay to
      ICICI the fair market value thereof to be determined by
  

            

    

    

    /stamp/
ICICI LTD

     

    an independent surveyor up to the maximum amount equivalent to 200
percent of the Conditional Grant.

    

    
      	
               
      

            	
              iv.

            	
              Payment
      to be made by the Proposer under sub-sections D2 - ii & iii above
      shall set off against the Proposer's obligations under Sub-Sections C2
      and/or C3 above.

            

    

    

    
      	
              D3

            	
              The
      Proposer shall make no long term financial commitments for leases,
      salaries, purchase of long lead items or otherwise for the project unless
      such proposed commitment has been clearly identified in the Proposal or
      has been approved in writing by ICICI subsequent to approval of the
      Proposal and prior to such proposed
commitment.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              D4

            	
              Any
      identification taxes, tariff or duties charged by Government of India and
      Government of United States of America on any commodities (equipment,
      materials or other goods) or services or on the importation, manufacture,
      procurement or supply hence of which are financed by ICICI are to be borne
      by the Proposer and are not eligible for financing under this
      agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              D5

            	
              The
      Proposer shall utilise the Conditional Grant only in accordance with the
      Approved Proposal Budget (Annex A). Deviations in excess of 20 percent
      between the budget line items will require prior written approval of
      ICICI.

            

    

    

    
      	
              E

            	
              CONDUCT
      OF THE PROJECT

            

    

    

    
      	
              E1

            	
              The
      Proposer agrees to do the work set out in the proposal in accordance with
      good standards relevant to such undertakings and shall spend funds
      received hereunder only in accordance with such Proposal and the
      requirements of this Agreement.

            

    

    

    
      	
              E2

            	
              The
      Proposer shall bring in US$ 1,200,000 in a manner and schedule to be
      finalized in consultation with ICICI and on terms satisfactory to
      ICICI.

            

    

    

    /stamp/
ICICI LTD.

    

    
      	
              E3

            	
              The
      Proposer shall not take any new project or expansion or make any
      investment or take assets or lease, in excess of US $ 200,000 without
      prior approval of ICICI during the currency of ICICI
      assistance.

            

    

    

    
      	
              E4

            	
              The
      Proposer undertakes in the form required by ICICI, whereby it shall take
      the responsibility for making arrangement satisfactory to ICICI for
      meeting shortfall, if any, in the resources of the company for completing
      the project. The funds brought in to meet the short fall in resources of
      the Proposer for completing the project shall be in form and manner and on
      such terms as may be required by
ICICI.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              E5

            	
              The
      Proposer agrees to appoint key persons for the implementation of the
      Proposal in consultation with
ICICI.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              E6

            	
              The
      Proposer shall make sincere efforts to file patents and get approvals from
      concerned agencies for product(s)/processes developed under the project
      and subsequent development variations, modification etc. either in its
      name or jointly with other developer(s). All the costs related to filing
      patent and for the approvals will be borne by the Proposer; such costs are
      included in the total cost of the
project.

            

    

    

    
      	
              F

            	
              REPORTING
      REQUIREMENTS

            

    

    

    
      	
              F1

            	
              The
      Proposer shall submit to ICICI, in writing the following
      reports:

            

    

    

    
      	
               
      

            	
              a.

            	
              Half
      yearly fiscal report and technical report for each half-year ending on
      June 30 and December 31 in each year by July 31 and January 31
      respectively.

            

    

    
      	
               
      

            	
              b.

            	
              Summary
      Report (Final Report) within 60 days from the development of the Product
      and also following the Termination of this Agreement under Section
      I.

            

    

     

    /stamp/
ICICI LTD.

    

    
      	
              F2

            	
              i.

            	
              The
      reports required in para F1 above shall be in form and substance to be
      prescribed by ICICI.

            

    

    

    
      	
               
      

            	
              ii.

            	
              The
      Proposer shall provide, at its expense, briefings on the progress of the
      work hereunder within 15 days following request by
  ICICI.

            

    

    

    
      	
              F3

            	
              i.

            	
              The
      Proposer shall allow ICICI/USAID or their authorised representatives to
      audit or inspect the project, including the utilization of goods/
      services, records/other documents relating to
  assistance.

            

    

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              ii.

            	
              The
      Proposer undertakes to maintain proper books of accounts for utilization
      of TDC funds and the Proposer shall at the request of ICICI conduct an
      audit of the project each year till the completion of the Project and
      submit the report to ICICI within the time frame to be stipulated by
      ICICI. The cost of the audits shall be borne by the Proposer. The project
      books and records should be maintained for atleast three years after the
      date of last disbursement.

            

    

    

    
      	
               
      

            	
              iii.

            	
              The
      Proposer submits periodic progress reports to ICICI and allows periodic
      visits by ICICI and USAID officers or their authorised representatives for
      monitoring the progress of the project and its
  operations.

            

    

    

    G.           PUBLICATIONS

    

    
      	
              G1

            	
              Any
      publications of data or other information derived from the work hereunder,
      or any publication related to the work, but not including product
      literature or manuals, shall contain the following legend or approved
      equivalent:

            

    

    

    "the work
on which this (Article/Publication) is based was supported in part by a grant
from the Government of India pursuant to the MoU between ICICI and USAID for
Technology

    /stamp/
ICICI LTD.

    Development
and Commercialization (TDC) Program. The views and information contained herein
are those of the authors and not necessarily those of USAID or ICICI. The USAID
or ICICI assume no liability for the contents of this document by virtue of the
support given."

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              G2

            	
              To
      the extent so required to permit ICICI free dissemination of such
      publication or information which ICICI is privileged to disseminate the
      Proposer shall be deemed hereby to waive any claim with respect to such
      dissemination for infringement of any copyright it may have or may
      obtain.

            

    

    

    
      	
              G3

            	
              The
      Proposer shall furnish to ICICI two (2) copies of all publications
      resulting from work supported under this Agreement as soon as possible
      after publication.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              H.

            	
              PROPRIETARY
      INFORMATION

            

    

    

    
      	
               
      

            	
              Proprietary
      information clearly identified as such submitted to ICICI in the Proposal,
      in any report specifically marked as confidential or secret shall be
      considered as confidential and ICICI shall make its best endeavour to
      preserve its confidentiality subject to qualifications mentioned herein.
      Provided however, that the aforesaid provision shall not apply to any
      information or material which is otherwise available in published
      literature or is a matter of general or specific knowledge in trade,
      industry or technical journal or which does not represent any proprietary
      information or ownership of the Proposer. Provided further that the
      disclosure by ICICI of such information to its staff members or other
      persons having access thereto for the purpose of evaluation or
      implementation of the proposal shall not constitute any breach or
      violation of the aforesaid but ICICI shall take reasonable precaution to
      ensure the confidentiality and non-disclosure by such person in their
      future dealings. Nothing contained in the forgoing shall restrict the
      right of ICICI to make public the fact that ICICI's support for the
      project, and the identification of the Proposer
  therein.

            

    

    

    /stamp/
ICICI LTD.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              I.

            	
              REVOCATION
      OF AGREEMENT

            

    

    

    
      	
              I1

            	
              ICICI
      may revoke this Agreement for any breach of default of terms and
      conditions of this Agreement by the Proposer. The Proposer shall be bound
      by the decision of ICICI.

            

    

    

    
      	
              I2.

            	
              Upon
      expiry of 30 days period from the date of receipt of notice of revocation,
      unless the Proposer has remedied the breach of default to the satisfaction
      of ICICI, this Agreement shall stand
revoked.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              I3.

            	
              Notwithstanding
      any other provision in this Agreement to the contrary, ICICI shall not be
      obligated to provide any further financing after notice of revocation
      until and unless the said default is remedied and so demonstrated to the
      reasonable satisfaction of ICICI.

            

    

    

    
      	
              I4

            	
              After
      this Agreement stands revoked as aforesaid, all funds given to the
      Proposer as per sub-section B1 above shall forthwith become due and
      payable by the Proposer to ICICI notwithstanding anything to the contrary
      and it will not be necessary for ICICI to make a written demand for
      payment thereof. The Proposer shall be bound to repay such funds
      immediately upon such revocation, in US Dollars together with interest
      thereon at the rate stipulated under sub-section C6
  above.

            

    

    

    
      	
              I5

            	
              The
      Proposer shall not be entitled to terminate this Agreement on his own
      account or to abandon or modify the Project without obtaining the prior
      written consent of ICICI.

            

    

    

    
      	
              J.

            	
              FINANCIAL
      RECORDS AND INSPECTION

            

    

    

    
      	
              J1

            	
              The
      Proposer shall maintain separate business and financial records and books
      of accounts for the work contemplated hereunder. Such books and records
      shall be maintained in accordance with generally accepted accounting
      principles and
practices.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    /stamp/
ICICI LTD.

    

    
      	
              J2

            	
              Books
      and records of the work contemplated hereunder shall show Proposer's
      contribution. Upon request by ICICI, the Proposer shall provide evidence
      of his compliance hereunder.

            

    

    

    
      	
              J3

            	
              The
      Proposer shall maintain and operate separate "No-Lien" bank account for
      the funds received under the Conditional
Grant.

            

    

    

    
      	
              J4

            	
              ICICI
      or any person designated by ICICI may examine or cause to be examined
      through any agency the financial books, vouchers, records or any other
      documents of the Proposer relating to this Agreement and the
      implementation thereof at all reasonable times and intervals during the
      term of this Agreement or for a period of three years following last
      disbursement of Conditional Grant under this Agreement or so long as any
      payments are due by the Proposer to ICICI, whichever is later. All
      expenses and fees in connection with such examination will be borne by the
      Proposer and in case ICICI incurs any such expenditure, the same shall be
      immediately reimbursed by the Proposer. Until such reimbursement, the same
      shall earn interest at the rate stipulated in sub-section C6
      above.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              J5

            	
              The
      right of ICICI or examination shall also extend to machinery and equipment
      purchased by the Proposer out of the Conditional Grant and the provision
      for expenses in sub-section J4 above will apply mutatis
      mutandis.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              K

            	
              SUITS
      AGAINST ICICI BY THIRD PARTIES

            

    

    

    
      	
              K1

            	
              The
      Proposer shall defend all suits brought against ICICI and/or the
      Government of India, its officers or personnel, indemnify them for all
      liabilities and costs and otherwise hold them harmless on account of any
      and all claim, actions, suits, proceedings and the like arising out of or
      connected with or resulting
      from the performance of this Agreement by the Proposer or from the
      manufacture, sales distribution or use by the Proposer of the
      Product.

            

    

    

    /stamp/
ICICI LTD.

    

    
      	
              K2

            	
              The
      Proposer agrees that persons employed by it in connection with the
      Proposal shall be deemed to be solely its own employees and that no
      relationship of master and servant shall be created between such employees
      and ICICI, either for purposes of tort liability, social benefits or for
      any other purpose. The Proposer shall indemnify ICICI and hold it harmless
      from court costs and legal fees and for any payment which ICICI may be
      obliged to make on a cause of action based upon an employee-employer
      relationship as aforesaid.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              L

            	
              MISCELLANEOUS
      CONDITIONS

            

    

    

    
      	
              L1

            	
              ICICI
      makes no representation, by virtue of its financing the work hereunder or
      receiving any payments, as to the safety, value or utility of the Product,
      of the work undertaken, nor shall the fact of participation of ICICI, its
      financing or exercise of its rights hereunder be deemed an endorsement of
      the Product or of the Proposer, nor shall the name of ICICI be used for
      any commercial purpose or be publicised in any way by the Proposer except
      within the strict limits of this Agreement. ICICI assumes no obligation or
      liability in connection with this Agreement or implementation thereof or
      the project or Product.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              L2

            	
              Any
      patent that may arise from the development efforts should be registered in
      the name of the Proposer only.

            

    

    

    
      	
              L3

            	
              The
      Proposer may not assign this Agreement or any of the work undertaken
      pursuant to it without the prior written consent of ICICI. No claim for
      compensation damages or otherwise shall be entertained by ICICI from the
      Proposer or any person claiming from or under
  them.

            

    

    

    
      	
              L4

            	
              In
      the event that potentially useful products or processes are developed as
      the result of work financed by ICICI hereunder but the Proposer elects not
      to

            

    

    

    /stamp/
ICICI LTD.

    

    commercialise
or license such products or processes, then ICICI reserves to itself the right
to commercialise such products/processes through any other agency at their
discretion. If so required by ICICI, the Proposer will execute a
Disclaimer/Release Assignment in favour of ICICI or any other Agency as ICICI
may direct.

    

    
      	
              L5

            	
              All
      monies due and payable by the Proposer to ICICI under or in terms of this
      Agreement shall be paid by Cheque or Bank Draft drawn in favour of ICICI
      or any other mode that may be acceptable to
  ICICI.

            

    

    

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    

    
      	
              L6

            	
              This
      Agreement shall be construed and interpreted in accordance with the laws
      in India.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              L7

            	
              The
      Proposer undertakes to comply with all applicable laws, rules and
      regulations as prevailing in India and United States of America as the
      case may be and will also apply and obtain all necessary licenses,
      consents and permits for the purposes of entering into and carrying out
      their obligations.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    

    
      	
              L9

            	
              Notices,
      communications and reports shall be addressed
  to:

            

    

    

    
      
        	
                a.

              	
                The
      ICICI Limited

              
	 
      	
                Technology
      Group

              
	 
      	
                ICICI
      Towers, 8 th Floor, North Tower

              
	 
      	
                Bandra
      (East)

              
	 
      	
                Mumbai
      400 051

              
	 
      	 
      
	
                b.

              	
                New
      Generation Motors Limited

              
	 
      	
                44645,
      Guilford Drive,

              
	 
      	
                Suite
      201, Ashburn

              
	 
      	
                Virginia
      20147

              
	 
      	
                U.S.A.

              

      

    

    

    /stamp/
ICICI LTD.

    

    M           EFFECTIVE
DATE

    

    
      	
              M1

            	
              This
      Agreement shall come into force from the date of execution hereof and
      unless revoked or terminated by ICICI under section I hereinabove, this
      Agreement shall remain in force till all the obligations of the Proposer
      for making payments hereinabove are fully and effectively discharged. In
      the event of sooner termination or revocation, the obligations of the
      Proposer under this Agreement shall continue in favour of ICICI till the
      same are fully discharged by performance or payment by the Proposer as the
      case may be.

            

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    
      /stamp/
Embassy of India / Consular Division / Washington, D.C.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, the Proposer has caused its Common Seal to be affixed hereto
and to a duplicate hereof on the day, month and year first hereinabove written
and the ICICI has caused the same to be executed by the hand of authorised
official of the ICICI as hereinafter appearing.

    

    
      
        
          
            
              
                	
                        THE COMMON SEAL of
      New Generation Motors Corporation has pursuant to the Resolution of its
      Board of Directors passed in that behalf on the 11th
      date of September
      2001. Hereunto been affixed in the presence
      of Nabih
      E. Bedewi President
      of the Company who has signed these presents in token
      thereof.

                      	 
      	
                        /stamp/
      illegible.

                         

                        
                          /s/
      Nabih Bedewi

                        

                      
	 
      	 
      	 
      
	
                        SIGNED AND DELIVERED
      BY THE ICICI LIMITED by the hand of Shri ___________________ an
      authorised official of ICICI.

                      	 
      	
                        /s/
      illegible.

                        
                          /s/
      illegible

                        

                      
	
                         

                      	  
      	
                         

                      
	 
      	  
      	  
      
	
                        /stamp/ WAS/
      CONS/4181717 4205 S. No 4205 Seen in the Consular Section of the Embassy
      of India Washington, D.C., on this 30
      day of Oct
      19
      2001

                      	 
      	
                        /stamp/
      (S.K.
      SHARMA) Attache (Consular) Embassy of India Washington,
      DC

                      

              

            

          

        

      

    

    

    /s/
illegible

    /stamp/
ICICI LTD.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ANNEX A

    

    Approved Budget

     

    A.
             
Cost of the Project

    
      
        
          
            
              	
                      Particulars

                    	 	
                      Amount

                      (US $)

                    	 
	
                      Prototype
      - components including material & labor

                    	 	 	200,000	 
	
                      Specialised
      equipment

                    	 	 	150,000	 
	
                      Soft
      tooling

                    	 	 	200,000	 
	
                      Engineering
      manpower

                    	 	 	700,000	 
	
                      Commercialisation

                    	 	 	500,000	 
	
                      Contigency

                    	 	 	150,000	 
	 
      	 	 	1,900,000	 

            

          

        

      

    

     

    B.             
Means of Financing

    
      
        
          
            
              	
                      Particulars

                    	 	
                      Amount

                      (US $)

                    	 
	
                      Funds
      from NGM and others

                    	 	 	1,200,000	 
	
                      ICICI-TDC
      (Conditional grant)

                    	 	 	700,000	 
	 
      	 	 	1,900,000	 

            

          

        

      

    

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    /stamp/
ICICI LTD.

     

    ANNEX B

     

    Schedule of fixed payment of royalty
to ICICI

     

    
      
        
          
            	 
      	 	
                    In
      US $

                  	 
	
                    May
      15, 2003

                  	 	 	75,000	 
	
                    November
      15, 2003

                  	 	 	75,000	 
	 
      	 	 	 	 
	
                    May
      15, 2004

                  	 	 	100,000	 
	
                    November
      15, 2004

                  	 	 	100,000	 
	 
      	 	 	 	 
	
                    May
      15, 2005

                  	 	 	175,000	 
	
                    November
      15, 2005

                  	 	 	175,000	 
	 
      	 	 	 	 
	
                    May
      15, 2006

                  	 	 	175,000	 
	
                    November
      15, 2006

                  	 	 	175,000	 
	 
      	 	 	 	 
	
                    May
      15, 2007

                  	 	 	175,000	 
	
                    November
      15, 2007

                  	 	 	175,000	 
	
                    Total

                  	 	 	1,400,000	 

          

        

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Note:   The
schedule shall be suitably revised in case the total amount of assistance to the
Proposer is lower than the sanctioned amount.

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    /stamp/
ICICI LTD.

     

    ANNEX C

     

    Procurement Source for Goods and
Services

    Financed under the Conditional
Grant

     

    A. Foreign Exchange
Costs

     

    The
source and origin of goods and services to be financed in foreign exchange out
of the Conditional Grant will be the United States (Code 000), except as ICICI
may otherwise agree in writing.

     

    B. Local Current
Costs

     

    The
source and origin of local currency of goods and services to be financed out of
the Conditional Grant in local currency (Indian Rupees) shall be
India.

     

    C. Transportation by air of Property
and Persons

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    The
Conditional Grant will be available to defray cost of transportation of property
and persons by air only when the air carriers holding United States
Certification are used. For international travel, the transportation costs can
be financed from the Conditional Grant only for economy class on U.S. flag air
carrier. However, in the event of non-U.S. flag air carrier is selected, the
Proposer will provide a certificate, which is essentially as
follows:

     

    "Certification of Unavailability of
U.S. Flag Air Carriers"

     

    I hereby
certify that transportation service for personnel or property by certificated
U.S. air carrier was unavailable for the following reasons:

     

    It may be
noted that passenger service by a certificated air carrier will be considered to
be "unavailable"

     

    /stamp/
ICICI LTD.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.             
When certificated air carriers offer only first class service and less than
first class service is available from non-certificated air carrier,
or

     

    2.
             
When the traveller, while en route has to wait 6 hours or more to transfer to a
certificated air carrier to proceed to the intended destination or

     

    3.             
When any flight by a certificated air carrier is interrupted by a stop
anticipated to be 6 hours or more for refueling, reloading, repairs, etc., and
no other flight by a certificated air carrier is available during the 6 hour
period, or

     

    4.
             
When by itself or in combination with other certificated or noncertificated air
carriers (if certificated air carrier are "unavailable") it takes 12 or more
hours longer from the original airport to the destination airport to accomplish
the mission than would service by a non-certificated air carrier or
carriers.

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    5.
             
When the elapsed travel time on a schedule flight from original destination
airports by noncertificated air carrier(s) would involve twice such scheduled
travel time.

    

    D. Contracting with Government Owned
Organisations

     

    Proposer
will not utilise the Conditional Grant to contract/subcontract with government
owned firms or Organisation (except public educational institutions) unless
he/they can demonstrate to ICICI that the services to be rendered by such firms
or organisation are not available by private sector firms and obtains prior
permission from ICICI before executing the Contract.

     

    The
definitions of Source and Origin and other related terms relating the
Procurement Source are as follows:

     

    /stamp/
ICICI LTD.

     

    Procurement Source -
Definition

     

    
      	
              1. 

            	
              Source and
      Origin

            

    

    With
respect to equipment and materials, "source" is the country from which such
equipment and material is shipped to India or India itself if the equipment and
materials are located therein at the time of purchase. However, where the
equipment and materials re shipped to India from a free port or bonded warehouse
in the form in which received therein, "source" means the country or territory
from which the equipment or materials was shipped to such a free port or bonded
warehouse. "Origin" is the country in which such equipment or materials is
mined, grown or produced. A commodity is produced when though manufacturing,
processing or assembly, a commercially recognised new commodity results that is
substantially different in basic characteristics, or in purpose, or utility from
its components.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    
      	
              2.

            	
              Goods and
      Services

            

    

    Goods are
considered as a produced commodity. Services are primarily identified with
professional, technical and procurement and construction service contracts.
Services re also commodity-related such as insurance ocean freight and/or
incidental services. Insurance means a policy of insurance including marine
liability or any performance or other bond eligible for financing. Incidental
services would be for such items as equipment installation and personal training
in connection with equipment.

     

    The
application of "Source" and "Origin" criteria to the three types of
commodity-related services is as follows. In the case of insurance, the "source"
and "origin" is the country in which such insurance is placed. In case of
incidental service the "source" and "origin" is the country to which the
personnel or firm providing the services belong. In case of ocean freight the
"source" and "origin" is the country of the flag registry of the
vehicle.

     

    /stamp/
ICICI LTD.

     

    3.
          Indigenous
Goods

    
      
        	
              	
                a. 

              	
                Goods
      that have been mined, grown or produced in India though manufacture,
      processing or assembly are eligible for
  financing

              

      

    

    
      
        	
              	
                b. 

              	
                Goods
      produced with imported components, in order to qualify as indigenous, must
      result in a commercially recognised new commodity that is substantially
      different in basic characteristics or in purpose or utility from its
      components. Any imported component from a non-free world country makes the
      indigenous commodity ineligible for the Conditional Grant
      Financing.

              

      

    

     

    
      	
              4.

            	
              Shelf Item
      Procurement

            

    

    Goods
which are normally imported into India and kept in stock in form in which
imported for commercial resale to meet a general demand in India shall be deemed
to be of Indian source for purposes of financing under the Conditional Grant,
subject to the following:

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

     

    
      	
            	
              a. 

            	
              Shelf items
      imported from Code 941
countries

            

    

    Shelf
items are eligible for financing under the Conditional Grant if they have their
origin in the United States or in a country included in Code 941.

     

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    
      	
            	
              b.

            	
              Shelf items
      Imported from Other Free World
Sources

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    Shelf
items having their source and origin in countries included in Geographic Code
899 (any area or country in the Free World), excluding the co-operating Country
itself) but not in Geographic Code 941, are eligible for financing if the price
of one unit does not exceed US$ 5,000. For goods sold by units of quantity, e.g.
tons, barrels, etc., the unit to which the local currency equivalent of US$
5,000 is applied is that which is customarily used in quoting
prices.

    
      	
              
              

            	
              c.

            	
              Shelf Items
      Imported from Non-Free World
Sources

            

    

    
      
        	
              	
                i. 

              	
                Imported
      shelf items produced in or imported from countries not included in
      Geographic code 899 are ineligible for financing under the Conditional
      Grant.

              

      

    

     

    /stamp/
ICICI LTD.

     

    
      
        	
              	
                ii. 

              	
                Any
      imported component from a non-free World country makes the imported shelf
      item ineligible for financing under the Conditional
  Grant.

              

      

    

     

    Exceptions
from certain of the above requirements are available if adequately justified to
ICICI.

     

    List of
various Geographic Codes referred above are available with ICICI.

     

    /stamp/
The embassy of India accepts no responsibility for the contents of this
document.

    /stamp/
Embassy of India / Consular Division / Washington, D.C.

     

    /stamp/
ICICI LTD.

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