Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Exploration Drilling International Inc. - Exhibt 10.36

Loan Agreement

between

Dieter Thiemann 
Pöppelmannstrasse 4 
33428
Harsewinkel

as the lender

and

EDI Exploration Drilling International GmbH 
represented by
the managing director, 
Günter Thiemann Goethestrasse 61 
45721 Haltern am
See

as the borrower

	 	1. 	
      The lender grants the borrower a loan in the amount of
      Euro 10,000 with a term of 6 months. Each extension by an additional 3
      months has to be negotiated separately.

	 	2. 	
      The loan will be transferred by 07/02/2007 into the
      account at the

Volksbank Haltern 
Branch code 426
613 30 
Account 199 188 900

	 	3. 	
      The interest on the loan will be 6%. The interest will be
      credited to the lender at the end of the quarter, on 30/06/2007.

	 	4. 	
      Either party may recall the loan, for the first time on
      30/06/2007.

Haltern, 02/02/2007

	Borrower Signature 	           
             Lender 
	EDI Exploration Drilling International GmbH 	Dieter ThiemannFiled by Automated Filing Services Inc. (604) 609-0244 - Exploration Drilling International Inc. - Exhibit 10.37

[Logo] EXPLORATION 
DRILLING
INTERNATIONAL 

LOAN AGREEMENT

between

Albert and Margareta Meyer, spouses 
Gutenbergstrasse 13 in
48268 Greven

- referred to as lender below -

and

EDI Exploration Drilling International GmbH 
represented by
the managing director, 
Günter Thiemann Goethestrasse 61, 45721 Haltern am
See

- referred to as borrower below -

§ 1 Granting of loan

	 	(1) 	The lender grants the borrower a loan in the
      amount of 
	 	  	Euro [Handwriting: 23,000.00] 
	 	  	(in words: Euro [Handwriting: twenty three)
    
	 	  	 
	 	(2) 	The loan shall be paid out by transfer into the
      borrower’s account at the Volksbank 
	 	  	Haltern eG, branch code 426 613 30, account 199
      188 900. 

§ 2 Interest, term and repayment of loan

	 	(1) 	
      The annual interest payable on the loan shall be 7.0
      %.

	 	 	 
	 	(2) 	
      The term of the loan is 12 months and ends one year after
      the amount of the loan has been deposited into the borrower’s account (see
      § 1, no. 2).

	 	 	 
	 	(3) 	
      The loan plus interest shall be repaid according to § 2,
      no. 2 into the lender’s account at the [Handwriting: KSK Steinfurt, branch
      code 40351060, account number 72052616]

	Signature 	 	Signature 
	Lender 	 	EDI Exploration GmbH 
	  	 	           
                         
             WWW.EDIPOWER.COM 

1

[Logo] EXPLORATION 
DRILLING
INTERNATIONAL 

§ 3 Conversion privilege

The lender is aware that the borrower is a 100 % subsidiary of
Invision Capital Inc., listed in the USA at the OTC BB stock market.

Instead of repayment of the loan amount plus interest in the
amount of [handwriting: 24,610] Euro, the lender has the option of requiring the
delivery of [handwriting: 12,305] stocks of Invision Capital Inc. This
corresponds to the imputed stock exchange price of Euro 2.00 per stock. The
lender shall notify the borrower in writing about this option, at the latest one
month before the due date, according to § 2, no. 2, 3. 

If the aforementioned option is exercised, the lender
authorizes the borrower, to undertake any required activities, declarations of
intention, contracts etc. on his behalf, to effect the financial result of
delivering the stocks.

§ 4 Release from liability

The lender shall be responsible for tax-related consequences
arising from the exercise of the option, according to § 3 of this agreement. He
releases the borrower from any potentially existing withholding tax
responsibilities and will pay taxes on his own, for any accumulating speculative
gains, capital gains etc. as required.

§ 5 Supplementary agreements, amendments, severability,
executed copies

	 	(1) 	
      There are no supplementary agreements. Amendments,
      additions as well as deletions of individual provisions of this agreement
      must be made in writing in order to be effective.

	 	 	 
	 	(2) 	
      Should individual provisions of this agreement be
      invalid, the remainder of the agreement shall not be affected. In this
      case, the parties to the agreement are required to assume that a
      replacement provision has been agreed to, which fulfils the economic
      purpose of the invalid provision as much as possible.

	 	 	 
	 	(3) 	
      This contract shall be issued in duplicate. The lender
      and the borrower shall each receive a copy signed by both parties to the
      agreement.

	[Handwriting: Greven] 	 	  
	Haltern am See, on 06/07/2006 	 	  
	  	 	  
	Signature 	 	Signature 
	  	 	  
	  	 	EDI Exploration Drilling International GmbH
  
	  	 	Managing director, Günter Thiemann 
	               
         - Lender - 	 	- Borrower - 

	Signature 	 	Signature 
	               
         - Lender - 	 	EDI Exploration GmbH 

WWW.EDIPOWER.COM

2www.EXFILE.com  888.775-4789   MILLENNIUM INDIA ACQUISITION - FORM 8K

    
      EXHIBIT
        10.1a

       

      
        	
                 

                 

                 

                 

                SHARE
                  SUBSCRIPTION AGREEMENT

                

                

                BETWEEN

                

                

                MILLENNIUM
                  INDIA ACQUISITION COMPANY INC

                
 

                
 

                AND

                
 

                
 

                SMC
                  GLOBAL SECURITIES LIMITED

                

                AND

                
 

                
 

                PROMOTERS
                  OF SMC GLOBAL SECURITIES LIMITED

                

                

                

                

                

                Dated
                  ___ day of May, 2007

                 

                 

                 

                 

                 

                

                
 

                3/F,
                  Mahatma Gandhi Memorial Building,

                7,
                  Netaji Subhash Road, Charni Road (West),

                Mumbai
                  400 002

                Tel:
                  (+91) 22 2281 1700

                Fax:
                  (+91) 22 2284 1800

                E-mail:
                  rajesh@aralaw.com

                 

                 

                 

                 

                 

                 

              

      

       

    

    
      
        Strictly
          Private & Confidential

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
       

    

    SHARE
      SUBSCRIPTION AGREEMENT

     

     

    
      
        	
                1.

              	
                DEFINITIONS
                  AND INTERPRETATION

              	
                3

              
	 	 	 
	
                2.

              	
                SUBSCRIPTION
                  ON COMPLETION DATE

              	
                8

              
	 	 	 
	
                3.

              	
                CONDITIONS
                  PRECEDENT

              	
                9

              
	 	 	 
	
                4.

              	
                COMPLETION

              	
                10

              
	 	 	 
	
                5.

              	
                CONDITIONS
                  SUBSEQUENT TO COMPLETION AND COVENANTS

              	
                12

              
	 	 	 
	
                6.

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                13

              
	 	 	 
	
                7.

              	
                INDEMNITY

              	
                14

              
	 	 	 
	
                8.

              	
                CO-OPERATION

              	
                16

              
	 	 	 
	
                9.

              	
                RESOLUTION
                  OF DISPUTES

              	
                17

              
	 	 	 
	
                10.

              	
                GOVERNING
                  LAW

              	
                18

              
	 	 	 
	
                11.

              	
                NOTICES

              	
                18

              
	 	 	 
	
                12.

              	
                TERM

              	
                19

              
	 	 	 
	
                13.

              	
                CONFIDENTIALITY
                  AND PUBLICITY

              	
                19

              
	 	 	 
	
                14.

              	
                AUTHORIZED
                  PERSON

              	
                20

              
	 	 	 
	
                15.

              	
                TERMINATION

              	
                20

              
	 	 	 
	
                16.

              	
                MISCELLANEOUS
                  PROVISIONS

              	
                22

              
	 	 	 
	
                SCHEDULE
                  1 —
                  PROMOTER AND PROMOTER GROUP 

              	
                26

              
	 	 	 
	
                SCHEDULE
                  2 — COMPANY AND SMC GROUP COMPANIES 

              	
                27

              
	 	 	 
	
                SCHEDULE
                  3 — POST COMPLETION SHAREHOLDING STRUCTURE 

              	
                28

              
	 	 	 
	
                SCHEDULE
                  4 — CONDITIONS PRECEDENT 

              	
                30

              
	 	 	 
	
                SCHEDULE 5
                  — RESTRICTED ACTIONS 

              	
                33

              
	 	 	 
	
                SCHEDULE
                  6 — CONDITION SUBSEQUENT 

              	
                35

              
	 	 	 
	
                SCHEDULE
                  7 — REPRESENTATIONS AND WARRANTIES 

              	
                36

              
	 	 	 
	
                SCHEDULE
                  8 — PRE-COMPLETION SHAREHOLDING OF SMC GROUP COMPANIES 

              	
                53

              
	 	 	 
	
                SCHEDULE
                  9 — LIST OF REGULATORY APPROVALS 

              	
                56

              
	 	 	 
	
                SCHEDULE
                  10 — LIST OF CLOSING DELIVERABLES 

              	
                57

              
	 	 	 
	
                ANNEXURE
                  1 — FORM OF SHAREHOLDERS AGREEMENT 

              	
                58

              
	 	 	 
	
                ANNEXURE
                  2 — FORM OF NO OBJECTION LETTER 

              	
                59

              
	 	 	 
	
                ANNEXURE
                  3 — DISCLOSURE SCHEDULE 

              	
                61

              
	 	 	 
	
                ANNEXURE
                  4 — INVESTOR DISCLOSURE SCHEDULE 

              	
                62

              

      

    

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    SHARE
      SUBSCRIPTION AGREEMENT

    

    THIS
      SHARE SUBSCRIPTION AGREEMENT (this “Agreement”) is made
      as on this ______ day of May, 2007.

    

    BETWEEN:

    

    
      	
              (1)
                   

            	
              MILLENNIUM
                INDIA ACQUISITION COMPANY INC. a company organised under the laws
                of the State of Delaware, United States of America and having its
                office
                address at 330 East, 38th Street, suite 46C, New York, NY 10016,
                USA
                (hereinafter referred to as “Investor”, which expression shall,
                unless it be repugnant to the context or meaning thereof, be deemed
                to
                mean and include its successors and
                assigns);AND

            

    

    

    
      	
              (2)   
                

            	
              SMC
                GLOBAL SECURITIES LIMITED, a company incorporated under the
                Indian Companies Act, 1956, having its registered office 17, Netaji
                Subhash Marg, Darya Ganj, New Delhi (hereinafter referred to as
                “Company”);AND

            

    

    

    
      	
              (3)   
                

            	
              MR.
                S.C. AGGARWAL (“Promoter No.1”), son of Mr. M. G.
                Aggarwal, Indian inhabitant, residing at C-335, Saraswati Vihar,
                New Delhi
                - 110088 ; AND

            

    

    

    
      	
              (4)   
                

            	
              MR.
                M.C. GUPTA (“Promoter No.2”), son of Mr. S.S. Gupta,
                Indian inhabitant residing at C-39, Anand Vihar I.P. Extention, New
                Delhi
                – 110 092; AND

            

    

    

    
      	
              (5)   
                

            	
              Person
                and entities listed at Schedule 1 (“Promoter
                Group”) represented jointly by Mr. S.C. Aggarwal and Mr. M. C.
                Gupta.

            

    

    

    Promoter
      No.1 and Promoter No.2 are collectively referred to as
“Promoters”.

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    W
      H E R E A S:

    

    
      	
              A.           
                

            	
              The
                Company is in the business of dealing in security market as stock
                broker,
                distribution of mutual fund units, IPO distribution and has made
                an
                application to Securities and Exchange Board of India for registration
                as
                portfolio manager. The Company through SMC Group Companies (defined
                below) is engaged in the business of commodities trading, insurance
                broking, merchant banking as more specifically defined in Schedule
                2 of this Agreement;

            

    

     

    
      	
              B.         
                 

            	
              On
                the request of the Company and the Promoters, the Investor proposes
                to
                invest in the Company in accordance with the terms and subject to
                the
                conditions of this Agreement;

            

    

    

    
      	
              C.           

            	
              The
                subscription to the Subscription Shares (defined below) by the
                Investor shall be in accordance with the terms and subject to the
                conditions of this Agreement and the number of Subscription Shares
                (defined below) shall be such, that post subscription and
                acquisition of Subscription Shares of the Company, the Investor shall
                be
                the direct, legal and beneficial owner of 14.90% of the total issued
                and
                paid up equity share capital of the Company on a fully diluted basis
                and
                indirect proportionate shareholder in the SMC Group Companies as
                contemplated in Schedule
                3;

            

    

    

    
      	
              D.         
                 

            	
              The
                Parties hereto wish to record in the manner herein mentioned the
                terms and
                conditions on which the Investor shall subscribe to and acquire the
                Subscription Shares of the Company.

            

    

    

    NOW
      THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES CONTAINED
      HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION THE ADEQUACY OF WHICH IS HEREBY
      ACKNOWLEDGED, IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AND THIS
      AGREEMENT WITNESSETH AS UNDER:

     

    
      	
              1.          
                  

            	
              DEFINITIONS
                AND INTERPRETATION

            

    

     

    
      	
              1.1.  

            	
              Definitions:

            

    

     

    In
      this
      Agreement, the following terms, to the extent not inconsistent with the context
      thereof or otherwise defined herein, shall have the following meanings assigned
      to them herein below:

     

    
      	
              i.  

            	
              ‘Act’
                shall mean the Indian Companies Act,
                1956.

            

    

     

    
      	
              ii.  

            	
              ‘Affiliate’
                in relation to the Investor, being a corporate entity, means any
                entity,
                which is a subsidiary (with Investor, directly or indirectly, holding
                50.1% or more shares) of the Investor including the Investor’s Dubai
                Subsidiary.

            

    

     

    
      	
              iii.  

            	
              ‘Agreement’
                shall mean this Share Subscription Agreement together with the schedules,
                Disclosure Schedule, and annexure thereto as from time to time made,
                amended, supplemented or replaced or otherwise modified in accordance
                with
                the terms of this Agreement.

            

    

     

    
      	
              iv.  

            	
              ‘Alternative
                Transaction’ shall mean (a) (i) any direct or indirect acquisition or
                purchase of any Securities of the Company or SMC Group Companies
                (including but not limited to, a subscription for new Securities
                or
                purchase of existing Securities, unless otherwise contemplated in
                this
                Agreement) or any tender offer or exchange offer or irrevocable
                contribution in favor of any Person, (ii) any direct or indirect
                acquisition or purchase of any material assets of the Company or
                SMC Group
                Companies (unless otherwise agreed in writing by the Investor), other
                than
                in the Ordinary Course of Business; or (b) any merger, consolidation,
                business combination, sale of a material portion of the assets,
                recapitalization, liquidation, dissolution, incurrence of material
                indebtedness or similar transaction involving the Company or SMC
                Group
                Companies; or (c) any other transaction the consummation of which
                would
                prevent or materially delay the transactions contemplated
                hereby.

               

               

               

            

    

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              v.  

            	
              ‘Applicable
                Law’ shall mean any applicable constitution, treaty, statute,
                rule, regulation, ordinance, order, directive, code, judgment, decree,
                injunction, or any interpretation, determination, award, permit,
                license,
                authorization, directive requirement, ruling or decision of, agreement
                with, or by a Government Authority.

            

    

     

    
      	
              vi.  

            	
               ‘Authorised
                Dealer’ shall mean ICICI Bank Limited or such other bank as is
                notified to the Investor by the
                Company.

            

    

     

    
      	
              vii.  

            	
              ‘Bankruptcy
                Matter’ shall mean any matter in connection with any liquidation;
                dissolution; reorganization; winding up; readjustment of debts;
                insolvency; bankruptcy; suspension of payments, inability to repay
                debts
                as such debts become due within the meaning of Section 434 of the
                Companies Act; general assignment for the benefit of creditors;
                administration or re-organization; action to appoint or application
                for a
                consent to the appointment of, or the taking of possession by, a
                receiver,
                custodian, trustee, liquidator, administrator, operating agency or
                similar
                officer for all or any part of a Person’s assets or revenues; a case of
                Proceeding under any applicable suspension of payments or bankruptcy
                laws
                or regulations; or a petition seeking to take advantage of any Applicable
                Laws providing for relief of
                debtors.

            

    

     

    
      	
              viii.  

            	
              ’Business’
                means the business carried on by the Company including the business
                carried on by each of the SMC Group
                Companies.

            

    

     

    
      	
              ix.  

            	
              ‘Claim’
                includes any notice, demand, assessment, letter or other document
                issued
                or action taken by any tax, fiscal or other statutory or governmental
                authority, body or official whatsoever (whether of India or elsewhere
                in
                the world) whereby the Company is or may be placed or sought to be
                placed
                under a liability to make a payment or deprived of any relief, allowance,
                credit or repayment otherwise
                available.

            

    

     

    
      	
              x.  

            	
              ‘Completion’
                shall mean completion of the events specified in Clause 4.3 below
                and the
                Investor being registered as a member in respect of the Subscription
                Shares in the register of members of
                Company.

            

    

     

    
      	
              xi.  

            	
              ‘Completion
                Date’ shall mean date mentioned in Clause 4.3
                hereof.

            

    

     

    
      	
              xii.  

            	
              ‘Conditions
                Precedent’ shall mean the conditions precedent mentioned in Clause 3
                of this Agreement.

            

    

     

    
      	
              xiii.  

            	
               ‘Derivative
                Securities’ of a Person shall mean any subscriptions, options,
                debentures, bonds, conversion rights, warrants, phantom stock rights
                or
                similar agreements, Securities or commitments of any kind obligating
                such
                Person to issue, grant, deliver or sell or cause to be issued, granted,
                delivered or sold (i) any shares or Securities of such Person; (ii)
                any
                Securities convertible into or exchangeable for any shares of such
                Person  or (iii) any rights to participate in the equity of such
                Person or to participate in or direct the election of any directors
                or
                officers of such Person.

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              xiv.  

            	
              ‘Effective
                Date’ shall mean the date of signing this Agreement by the
                Parties.

            

    

     

    
      	
              xv.  

            	
              ‘Encumbrances’
                shall mean any encumbrance, lien, charge, security interest, mortgage,
                pledge, easement, conditional sale or other title retention or
                non-disposal agreement or other restriction of a similar kind, and
                all
                other easements, encroachments and title defects of every type and
                nature,
                or any conditional sale contract, title, retention contract, or other
                contract to give or to refrain from giving any of the
                foregoing.

            

    

     

    
      	
              xvi.  

            	
              ‘Environment
                Law’ shall mean any Applicable Law pertaining to land use, air, soil,
                surface water groundwater (including the protection, cleanup, removal,
                remediation or damage thereof), public of employee health or safety
                or
                other environmental matter and any Applicable
                Law.

            

    

     

    
      	
              xvii.  

            	
              ‘Fully
                Diluted’ shall mean the total of all classes and series of Company or
                SMC Group Companies shares outstanding combined with all Derivative
                Securities (including both issued and un-issued), approved stock
                incentive
                plans for the employees and convertible Securities of all kinds and
                effect
                of any anti-dilution protection regarding previous financings, all
                on an
                “as if converted” basis.

            

    

     

    
      	
              xviii.  

            	
              ‘Governmental
                Authority’ shall mean any administrative agency, commission, court or
                other governmental or regulatory authority or instrumentality, whether
                central, state, local or municipal or judicial, quasi-judicial or
                administrative forum, including but not limited to, ministries and
                departments of the Government of India and Tax
                authorities.

            

    

     

    
      	
              xix.  

            	
              ‘Group
                Companies’ shall mean (i) SMC Comtrade Limited, (ii) DSP Insurance
                Brokers Private Limited, (iii) Nexgen Capitals Limited, (iv) SMC
                Comex
                International DMCC, (v) Abhichaya Investment Private Limited, and
                (vi)
                Pulin Investment Private Limited, (vii) SAM Global Securities
                Limited.

            

    

     

    
      	
              xx.  

            	
              ‘INR’
                or ‘Rs’ or ‘Rupees’ shall mean the lawful currency of
                India.

            

    

     

    
      	
              xxi.  

            	
              ‘Indian
                GAAP’ shall mean the generally accepted accounting principles
                recommended by the Institute of Chartered Accountants of India and
                where
                there are no such principles recommended, the accounting principles
                accepted in India and consistently applied from period to period
                and
                throughout any period in accordance with past practices of Company
                and SMC
                Group Companies.

            

    

     

    
      	
              xxii.  

            	
              ‘Investor’s
                Dubai Subsidiary’ shall mean the company proposed to be formed
                under the laws of the United Arab Emirates and Controlled by the
                Investor.

            

    

     

    
      	
              xxiii.  

            	
              ‘Knowledge’
                as used with respect to Company or SMC Group Companies shall mean
                matters
                as to which any of Promoters or any director, officer manager or
                employee
                of Company or SMC Group Companies has knowledge or matters which
                are not
                actually known but could have been known by such Persons based upon
                reasonable inquiry in the course of business or in connection with
                the
                verification of the representations and warranties under the
                Agreement.

            

    

     

    
      	
              xxiv.  

            	
              ‘Liabilities’
                shall mean any and all current liabilities, obligations, payables,
                forms
                of taxation whether of India or elsewhere in the world, past, present
                and
                deferred (including, without limitation, income tax, stamp duty,
                customs
                and other import or export duties) and all other statutory or governmental
                impositions, duties and levies and all penalties, charges, costs
                and
                interest relating to any Claim.

            

    

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              xxv.  

            	
              “Licenses”
                shall mean all approvals, licenses, permits and other authorizations
                issued by central, state or local Government Authorities and required
                for
                the Business of the Company or SMC Group
                Companies.

            

    

     

    
      	
              xxvi.  

            	
              ‘Material
                Adverse Effect’ shall mean the occurrence or reasonably likely
                occurrence of any event, change, circumstance or effect that individually
                or in the aggregate (taking into account all other such events, changes,
                circumstances or effects), is or is reasonably likely to (a) have
                a
                material adverse effect to the financial conditions, properties,
                assets
                (including intangible assets), liabilities, business, operations,
                results
                of operations or prospects of Company or SMC Group Companies, or
                (b)
                materially hinder or delay Company’s or SMC Group Companies ability to
                consummate the transactions contemplated herein, or (C) materially
                hinder
                Company’s or SMC Group Companies ability to operate its business
                substantially in the manner previously conducted following the
                Completion.

            

    

     

    
      	
              xxvii.  

            	
              ‘Ordinary
                Course of Business’ shall mean the ordinary course of business
                consistent with past custom and practice (including with respect
                to
                quantity and frequency), but only to the extent consistent with Applicable
                Law and the custom of entities engaged in the same business as the
                existing business of the Company or SMC Group Companies, as the case
                may
                be.

            

    

     

    
      	
              xxviii.  

            	
              ‘Party’
                shall mean the Investor, the Promoters or the Company referred to
                individually and ‘Parties’ shall mean the Investor, the Promoters
                and the Company referred to
                collectively.

            

    

     

    
      	
              xxix.  

            	
              ‘Person’
                shall include an individual, an association, a corporation, a partnership,
                a joint venture, a trust, an unincorporated organisation, a joint
                stock
                company or other entity or organisation, including a government or
                political subdivision, or an agency or instrumentality thereof and/or
                any
                other legal entity.

            

    

     

    
      	
              xxx.  

            	
              ‘Proceeding’
                shall mean any action, suit, charge, hearing, claim, legal quasi-judicial,
                administrative, regulatory, arbitration or other alternative dispute
                resolution proceeding or
                investigation.

            

    

     

    
      	
              xxxi.  

            	
              ‘Proprietary
                Rights’ shall mean (i) Indian and foreign patents, patent
                applications, patent disclosures and improvements thereto;
                (ii) Indian and foreign trademarks, service marks, domain names,
                trade dress, logos, designs, slogans, trade names and corporate names,
                the
                goodwill associated therewith, and the registrations and applications
                for
                registration thereof; (iii) United States and foreign copyrights, and
                the registrations and applications for registration thereof;
                (iv) computer software (including source and object code) and related
                specifications, flow charts and other documentation; and
                (v) confidential information, trade secrets, inventions (whether
                patentable or not), business information, customer lists, know-how,
                technology; and all documentation relating to any of the
                foregoing.

            

    

     

    
      	
              xxxii.  

            	
              ‘Representations
                and Warranties’ shall mean the representations, warranties covenants
                and undertakings given by the Company and/or the Promoters in this
                Agreement for themselves and for SMC Group
                Companies.

            

    

     

    
      	
              xxxiii.  

            	
              ‘Securities’
                shall have the meaning provided to the term under Section 2(h) of
                the
                Securities Contract (Regulation) Act,
                1956.

            

    

     

    
      	
              xxxiv.  

            	
               ‘Shares’
                or ‘Equity Shares’ shall mean the equity shares of the
                Company.

            

    

     

    
      	
              xxxv.  

            	
              ‘Shareholder’
                or ‘Shareholders’ shall mean any Person who holds any
                Shares.

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              xxxvi.  

            	
              ‘Shareholders
                Agreement’ shall mean the Shareholders Agreement to be executed
                between the Parties hereto in a form and manner annexed hereto as
                Annexure 1.

            

    

     

    
      	
              xxxvii.  

            	
               ‘SMC
                Group Companies’ shall mean (i) SMC Comtrade Limited, (ii) DSP
                Insurance Brokers Private Limited, (iii) Nexgen Capitals Limited,
                (iv) SMC
                Comex International DMCC, (v) Abhichaya Investment Private Limited,
                and
                (vi) Pulin Investment Private Limited more specifically defined in
                Schedule 2.

            

    

     

    
      	
              xxxviii.  

            	
              ‘Subscription
                Shares’ shall mean 1,314,054 Equity Shares of the Company to be
                subscribed to and acquired by the Investor at a total consideration
                of
                INR  1,376,905,203 constituting 14.90% of the Fully Diluted
                issued and paid-up share capital of the Company post Completion
                representing more specifically the Fully Diluted shareholding as
                set out
                in Schedule 3.

            

    

     

    
      	
              xxxix.  

            	
              ‘Tax’
                and, collectively ‘Taxes’ shall mean any and all foreign, central,
                state, municipal and local (or equivalent) taxes of any country,
                assessments and other governmental charges, customs duties, duties,
                impositions and liabilities, including taxes based upon or measured
                by
                gross receipts, income, profits sales, service, use and occupation,
                and
                value added, ad valorem, stamp duty, stamp transfer, franchise,
                withholding, payroll, recapture, employment, excise and property
                taxes,
                together with all interest, penalties and additions imposed with
                respect
                to such amounts and any obligations under any agreements or arrangements
                with any other Person with respect to such amounts and including
                any
                liability for Taxes of a predecessor
                entity.

            

    

     

    
      	
              xl.  

            	
              ‘Tax
                Return’ shall mean any return, declaration, report, claim for refund,
                or information return or statement relating to Taxes, including any
                schedule or attachment thereto and including any amendment
                thereof.

            

    

     

    
      	
              xli.  

            	
              ‘US
                GAAP’ shall mean the generally accepted accounting principles in the
                United States.

            

    

     

    
      	
              xlii.  

            	
              ‘Warrantors’
                shall mean the Company and the Promoters for themselves and on behalf
                of
                SMC Group Companies and ‘Warrantor’ means any one of
                them.

            

    

     

    
      	
              1.2.  

            	
              Other
                Defined Terms:

            

    

     

    
      	
              i.  

            	
               ‘Business
                Days’ means the days on which the banks are open for business in New
                Delhi.

            

    

     

    
      	
              ii.  

            	
               ‘Dispute’
                shall have the meaning as ascribed to it in Clause 9.1 of this
                Agreement.

            

    

     

    
      	
              iii.  

            	
               ‘Losses’
                shall have the meaning as ascribed to it in Clause 7.1 of this
                Agreement.

            

    

     

    
      	
              1.3.  

            	
              Interpretation:

            

    

     

    
      	
              i.  

            	
               The
                terms referred to in this Agreement shall, unless defined otherwise
                or
                inconsistent with the context or meaning thereof, bear the meaning
                ascribed to it under the relevant
                statute/legislation.

            

    

     

    
      	
              ii.  

            	
              All
                references in this Agreement to statutory provisions shall be construed
                as
                meaning and including references
                to:

            

    

     

    
      	
              a.  

            	
              Any
                statutory modification, consolidation or re-enactment (whether before
                or
                after the date of this Agreement) for the time being in
                force;

            

    

     

    
      	
              b.  

            	
              All
                statutory instruments or orders made pursuant to a statutory provision;
                and

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
      	
              c.  

            	
              Any
                statutory provisions of which these statutory provisions are a
                consolidation, re-enactment or
                modification.

            

    

     

    
      	
              d.  

            	
              Words
                denoting the singular shall include the plural and words denoting
                any
                gender shall include all genders.

            

    

     

    
      	
              e.  

            	
              Headings
                to clauses, sub-clauses and paragraphs are for information only and
                shall
                not form part of the operative provisions of this Agreement or the
                Schedules and shall be ignored in construing the
                same.

            

    

     

    
      	
              f.  

            	
              References
                to recitals, clauses or schedules are, unless the context otherwise
                requires, are references to recitals, to clauses of or schedules
                to this
                Agreement.

            

    

     

    
      	
              g.  

            	
               Reference
                to days, months and years are to Gregorian days, months and calendar
                years
                respectively.

            

    

     

    
      	
              h.  

            	
              Any
                reference to the words “hereof,” “herein”, “hereto” and “hereunder” and
                words of similar import when used in this Agreement shall refer to
                clauses
                or annexures of this Agreement as specified
                therein.

            

    

     

    
      	
              i.  

            	
              Any
                expression importing a natural person includes any company, trust,
                partnership, joint venture, association, body corporate or governmental
                agency.

            

    

     

    
      	
              j.  

            	
              Where
                a word or phrase is given a defined meaning, another part of speech
                or
                other grammatical form in respect of that word or phrase has a
                corresponding meaning

            

    

     

    
      	
              k.  

            	
              Reference
                to “Investor” shall unless repugnant to the context shall for the
                purpose of this Agreement, mean and include the Affiliates of the
                Investor. The rights under this Agreement shall be exercised by the
                Affiliate holding 7.451% of the issued and paid-up share capital
                of the
                Company at Completion. For computing the paid-up equity share capital
                of
                the Company, the bonus shares and subsequent increase in the capital
                pursuant to the merger with SAM Global Securities Limited and any
                100%
                subsidiary of the Company shall be
                included.

            

    

     

    
      	
              l.  

            	
              The
                words “include” and “including” shall be construed without
                limitation.

            

    

     

     

    
      	
              2.            

            	
              SUBSCRIPTION
                ON COMPLETION DATE

            

    

     

    
      	
              2.1.  

            	
              Subject
                to the terms and conditions set forth in this Agreement, and relying
                on
                the Representations and Warranties and the indemnities given by the
                Promoters and the Company under this Agreement, the Investor agrees
                on the
                Completion Date to subscribe for and the Company agrees to issue
                and allot
                to the Investor the Subscription Shares of face value of INR10/-
                each at
                issue price of INR 1,047.83/- each aggregating to an amount of INR
                1,376,905,203 such that post acquisition of Subscription Shares of
                the
                Company, the Investor is the legal and beneficial owner of
                14.90% of the total issued and paid up equity share
                capital of the Company and indirect shareholder of SMC Group Companies
                as
                set out in more detail at Schedule 3. The consideration
                to be paid for Subscription Shares shall be referred to as the Investment
                Amount (“Investment
                Amount”).

            

    

     

    
      	
              2.2.  

            	
              The
                Subscription Shares shall be acquired by Investor on Completion Date
                free
                from all Encumbrances and together with all rights, title and interests
                now or hereafter attaching thereto. The Investment Amount shall be
                fixed
                and firm and shall not be subject to escalation unless mutually agreed
                upon in writing between the Parties
                hereto.

            

    

     

    
      	
              2.3.  

            	
              All
                payments under this Agreement shall be paid in Indian Rupees and
                shall be
                by way of pay order or banker’s draft drawn on scheduled bank in India or
                by way of telegraphic transfer to such account as may be notified
                to the
                Investor.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	
              2.4.  

            	
              The
                Subscription Shares shall rank pari pasu with the existing issued
                Equity Shares of the Company with respect to all stock activities
                including but not limited to voting rights, dividends and rights
                issuance.

            

    

     

     

    
      	
              3.            

            	
              CONDITIONS
                PRECEDENT

            

    

     

    
      	
              3.1.  

            	
              The
                Parties agree that the obligation of the Investor to acquire the
                Subscription Shares, is conditional upon the fulfillment of the conditions
                stipulated in Schedule 4 hereto to the satisfaction of
                the Investor, unless specifically waived in writing by the Investor
                and
                the Representations and Warranties continue to be true and correct
                on the
                Completion Date.

            

    

     

    
      	
              3.2.  

            	
              If
                the Conditions Precedent mentioned in Schedule 4 are not
                fulfilled or satisfied or waived in writing by the Investor on or
                before
                165 days from the Effective Date or such other date as may be mutually
                agreed between the Parties in writing, the Investor shall have the
                right
                to terminate this Agreement
                forthwith.

            

    

     

    
      	
              3.3.  

            	
              The
                Promoters and the Company shall co-operate and provide all information
                and
                assistance to the Investor and/or its advisors and authorised
                representatives as reasonably requested by the Investor to enable
                them to
                verify the records/documents of the Company and SMC Group Companies,
                including as may be required for the purposes of the proxy statement
                filed
                by the Investor in accordance with the requirements of the laws of
                United
                States.

            

    

     

    
      	
              3.4.  

            	
              Conduct
                Prior to Completion: During the period from the date of this Agreement
                and continuing until the earlier of the termination of this Agreement
                or
                the Completion, the Promoters and the Company agree (except to the
                extent
                expressly contemplated by this Agreement or as consented to in writing
                by
                Investor) that Company and SMC Group Companies shall and Promoters
                shall
                cause the Company and SMC Group Companies to and shall ensure that
                each of
                the Company and SMC Group Companies shall, (i) carry on its business
                in
                the Ordinary Course of Business; (ii) pay its debts and taxes when
                due,
                subject to good faith disputes over such debts or Taxes, (iii) pay
                or
                perform other obligations when due, subject to good faith disputes;
                and
                (iv) use all reasonable efforts to preserve intact its present business
                organizations, and preserve its relationship with clients, lessors,
                licensors and others having business dealings with it, to the end
                that its
                goodwill and ongoing ability to provide services shall be unimpaired
                at
                the Completion. The Promoters agree to promptly notify the Investor
                of any
                event or occurrence not in the Ordinary Course of Business, and of
                any
                event which, in the opinion of the Company and/or the Promoters could
                reasonably be expected to have a Material Adverse Effect. Without
                limiting
                the foregoing, except as expressly contemplated by this Agreement,
                the
                Company shall not and the Promoters shall cause the Company and SMC
                Group
                Companies not to and shall ensure that Company and SMC Group Companies
                do
                not engage in any of the actions set out at Schedule 5,
                without the prior written consent of Investor which may be withheld
                in its
                sole discretion.

            

    

     

    
      	
              3.5.  

            	
              No
                Solicitation on Promoters, Company and SMC Group
                Companies.

            

    

     

    
      	
              i.  

            	
              From
                and after the date of this Agreement until the earlier of the Completion
                or the termination of this Agreement, the Company, SMC Group Companies
                and
                each of the Promoters shall not and the Promoters shall ensure that
                the
                Company and SMC Group Companies shall not directly or indirectly
                through
                any officer, director, employee, representative or agent of the Promoters
                or the Company or SMC Group Companies or otherwise, (i) solicit,
                initiate,
                or encourage any inquiries or proposals that constitute, or could
                reasonably be expected to lead to an Alternative Transaction; (ii)
                engage
                or participate in negotiations or discussions concerning, or provide
                any
                information to any Person with respect to, or afford any access to
                the
                properties, books or records of Company or SMC Group Companies, or
                take
                any other action to facilitate any inquiries or the making of any
                proposal
                that may reasonably be expected to lead to an Alternative Transaction;
                or
                (iii) authorize, agree into, accept, approve or recommend any agreement
                or
                understanding with respect to any Alternative Transaction. The Promoters,
                the Company and SMC Group Companies have terminated all and any pending
                discussions or negotiations relating to any Alternative Transaction
                and
                represent and warrant that they had the legal right to terminate
                such
                discussions without payment of any fee or other
                penalty.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	
              ii.  

            	
              The
                Company, the SMC Group Companies and the Promoters shall immediately
                notify the Investor (and no later than 24 hours) after (a) receipt
                by the
                Promoters or the Company or the SMC Group Companies (or its advisors)
                of
                Knowledge of any Alternative Transaction, or (b) if any discussions
                are
                sought to be initiated with regard to any Alternative Transaction,
                or (c)
                receipt of any request for information or for access to the properties,
                books or records of Company or SMC Group Companies by any Person
                that
                intends to enter into or has entered into an Alternative Transaction.
                Such
                notice shall be made orally and in writing and shall communicate
                to
                Investor the identity of the Person making such request or inquiry
                and any
                other terms of such request or inquiry and any other terms of such
                request
                or inquiry.

            

    

     

    
      	
              iii.  

            	
              It
                is acknowledged and agreed between the Parties that the Subscription
                Shares are not an ordinary article of commerce and are of special
                value of
                interest to the Investor and any breach or violation of the provisions
                of
                this Clause 3.5 shall cause to Investor irreparable harm and damages
                for
                which payment in damages shall not constitute adequate relief, and
                that
                therefore, without prejudice to any and all other rights and remedies
                the
                Investor may have, the Investor shall be entitled without proof of
                special
                damage to the remedies of injunction, specific performance and other
                equitable relief for any threatened or actual breach of the provisions
                of
                this Clause 3.5. Provided, however, that any sum payable to the Investor
                under this section as liquidated damages, compensation or costs shall
                not
                exceed US$ 2 million.

            

    

     

    
      	
              3.6.  

            	
              No
                Solicitation by Investor. From and after the date of this Agreement
                until the earlier of the Completion or the termination of this Agreement
                the Investor shall not directly or indirectly solicit, initiate,
                or
                encourage any inquiries or proposals that constitute, or could reasonably
                be expected to lead to any acquisition or subscription or purchase
                of
                Securities of any company in India engaged in similar line of Business.
                Any breach of this clause 3.6 by the Investor shall cause irreparable
                harm
                and damages to the Promoters and the Company for which payment in
                damages
                shall not constitute adequate relief and therefore without prejudice
                to
                any and other rights available to the Company and the Promoters,
                the
                Company and the Promoters shall be entitled jointly without proof
                of
                special damage to the remedies of injunction, specific performance
                and
                other equitable relief for any threatened or actual breach of the
                provisions of this Clause 3.6
                provided that the Promoters and the Company
                can jointly claim actual liquidated damages, compensation
                or  costs incurred to the extent of US$ 2
                million.

            

    

     

     

    
      	
              4.            

            	
              COMPLETION 

            

    

     

    
      	
              4.1.  

            	
              The
                Promoters and the Company shall notify the Investor of the fulfillment
                of
                the Company Conditions Precedent and provide to the Investor, all
                the
                requisite documents evidencing fulfillment of such Conditions Precedent
                applicable to the Promoters and/or the Company and/or SMC Group Companies.
                The Investor through its advisors/counsel shall then satisfy itself
                as to
                the fulfillment of the Company Conditions Precedent. The Investor
                shall
                notify the Promoters and the Company within 7 days from the date of
                receipt of all the documents/information from the Promoters of its
                satisfaction or dissatisfaction with the same or of waiving the
                fulfillment of any of the Company Conditions Precedent applicable
                to the
                Promoters and/or the Company and/or the SMC Group
                Companies.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
              4.2.  

            	
               In
                case the Investor notifies the Promoters or the Company of its
                dissatisfaction under Clause 4.1 above, the Promoters shall fulfill
                the
                unfulfilled Conditions Precedent on receipt of such notice and shall
                provide to the Investor, all requisite documents evidencing fulfillment
                of
                that Condition Precedent. The procedure referred to in Clause 4.1
                above
                shall be followed thereafter until the fulfillment of all Company
                Conditions Precedent applicable to the Promoters and/or Company and/or
                SMC
                Group Companies, to the satisfaction of the
                Investor.

            

    

     

    
      	
              4.3.  

            	
              Upon
                fulfillment of all the Conditions Precedents to the satisfaction
                of the
                Investor or if specifically waived in writing by the Investor, the
                Parties
                shall proceed to complete the subscription and purchase of Subscription
                Shares to the Investor (‘Completion’) in the manner provided in
                this Clause 4 and shall agree upon a date on which the Completion
                shall
                take place. The date so agreed between Investor, the Company and
                the
                Promoters shall hereinafter be referred to as the
                ‘Completion Date’, which in any case shall not be
                later than 165 days from the Effective Date. This date may however
                be
                extended upon mutual agreement between the
                Parties.

            

    

     

    
      	
              4.4.  

            	
              The
                Completion shall take place at the time and place mutually agreed
                between
                the Parties and on simultaneous completion of the following actions
                and
                receipt of the Investment Amount as indicated in Clause
                4.5:

            

    

     

    
      	
              i.  

            	
              The
                Promoters shall convene meeting of the Board of Directors of the
                Company,
                wherein the Board shall pass the following
                resolutions:

            

    

     

    
      	
              ii.  

            	
              Approve
                issue and allotment of Subscription
                Shares.

            

    

     

    
      	
              iii.  

            	
              Appoint
                one nominee of Investor as
                director.

            

    

     

    
      	
              iv.  

            	
              Enter
                the name of the Investor as the legal and beneficial owner of the
                Subscription Shares free of all Encumbrances, in the register of
                members
                of the Company.

            

    

     

    
      	
              v.  

            	
              Notify/intimate
                regulatory authorities as required under Applicable
                law.

            

    

     

    
      	
              4.5.  

            	
              The
                Promoters shall convene meeting of the Board of Directors and/or
                shareholders as may be required under Applicable Law for the SMC
                Group
                Companies, wherein the Board of Directors and the shareholders of
                respective companies shall pass the following
                resolutions:

            

    

     

    
      	
              i.  

            	
              Noting
                the indirect change in the shareholding, pursuant to investments
                made by
                Investor in the Company and reflecting the proposed shareholding
                as
                contemplated under Schedule 3.

            

    

     

    
      	
              ii.  

            	
              Pass
                necessary board resolutions, shareholders resolution and take such
                actions
                as may be necessary to adopt the revised Articles of Association
                as set
                out in Schedule 4 of the Shareholders
                Agreement.

            

    

     

    
      	
              iii.  

            	
              Notify/intimate
                regulatory authorities as required under Applicable
                law.

            

    

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
      	
              4.6.  

            	
              The
                Promoters shall deliver and cause the Company and SMC Group Companies
                to
                deliver, wherever required, the following documents to the
                Investor:

            

    

     

    
      	
              i.  

            	
              A
                certificate signed by the Promoters and the Company to the effect
                that the
                Representations and Warranties contained in this Agreement, continue
                to be
                true and correct as on the Completion Date with the same effect as
                though
                such Representations and Warranties had been made as of such
                date;

            

    

     

    
      	
              ii.  

            	
              Original
                share certificates evidencing the Subscription Shares or credit of
                the
                Subscription Shares in the depository account provided by the Investor
                to
                the Company; and

            

    

     

    
      	
              iii.  

            	
              Other
                documents as specifically identified as Schedule
                10.

            

    

     

    
      	
              4.7.  

            	
              Simultaneously
                upon completion of all the steps contemplated in Clause 4.4 above
                (but
                prior to the issue of share certificate or credit of the Subscription
                Shares in the depository account provided by the Investor to the
                Company),
                the Investor shall remit the Investment Amount, for credit to the
                account
                of the Company as intimated to the Investor in accordance with Clause
                2.3.

            

    

     

    
      	
              4.8.  

            	
              Immediately
                after subscription and purchase of Subscription Shares by the Investor,
                the shareholding pattern of the Company and the SMC Group Companies
                shall
                be as set out in Schedule 3.

            

    

     

    
      	
              4.9.  

            	
              The
                Parties agree to take all measures that may be required to ensure
                to the
                extent possible, that all the events contemplated in this Clause
                4 on the
                Completion Date are completed on the same day unless otherwise
                specifically agreed in writing by the
                Parties.

            

    

     

    
      	
              4.10.  

            	
              Notwithstanding
                the provisions of Clause 4.7, all proceedings to be taken and all
                documents to be executed and delivered by the Parties at Completion
                shall
                be deemed to have been taken and executed simultaneously to the extent
                possible and no proceedings shall be deemed to have been taken nor
                documents executed or delivered until all have been taken, executed
                and
                delivered.

            

    

     

     

    
      	
              5.            

            	
              CONDITIONS
                SUBSEQUENT TO COMPLETION AND
                COVENANTS

            

    

     

    
      	
              5.1.  

            	
              The
                Investor’s obligation to subscribe for and purchase of Subscription Shares
                at the Completion is subject to the fulfillment after the Completion
                of
                each of the conditions as set out in Schedule 6, unless
                waived in writing by such Investor at the
                Completion.

            

    

     

    
      	
              5.2.  

            	
              No
                Guarantee/Pledge. The Investor shall not at any point in time be
                required to pledge their Subscription Shares or provide any guarantee
                or
                other support to any third party, including without limitation lenders
                of
                Company and/or SMC Group Companies.

            

    

     

    
      	
              5.3.  

            	
              Ethical
                Business Practices. The Company and SMC Group Companies shall and the
                Promoters shall ensure that the Company and SMC Group Companies shall
                ensure that the business practices of Company and SMC Group Companies
                are
                ethical and in accordance with Applicable
                Laws.

            

    

     

    
      	
              5.4.  

            	
              Variances
                to annual operating budget & business plan. Any proposed variance
                to the annual operating budget, business plan or estimations in relation
                to capital expenditure or indebtedness (including giving of security
                for
                or guaranteeing debts but excluding (i) loan taken against the investments
                as appearing in the stock-in trade and investments in third party
                securities and given as security to exchanges/banks/institution by
                Company
                on behalf of SMC Group Companies/SAM Global Securities Limited or
                SMC
                Group Companies/SAM Global Securities Limited on behalf of the Company,
                and (ii) any guarantees given to exchanges on behalf of the Company
                or any
                Group Companies or vice versa) beyond 25% of what is stated in the
                annual
                operating budget, business plan or estimations along with reasons
                for such
                variance shall be brought to the immediate attention of the Board
                and
                shall not be implemented without the prior written consent of
                Investor.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
              5.5.  

            	
              Financial
                and accounting records. The Company and SMC Group Companies shall
                maintain true and accurate financial and accounting records of all
                operations in accordance with Indian GAAP, and in accordance with
                all
                relevant Indian statutory and accounting standards and the policies
                from
                time to time adopted by the respective Board of Directors. The financial
                statements and accounts of Company and SMC Group Companies shall
                be
                prepared in English and shall be audited on an annual
                basis.

            

    

     

    
      	
              5.6.  

            	
              Inspection
                & Audit Rights of Investor. The Company and SMC Group Companies
                shall and the Promoters shall ensure that the Company and SMC Group
                Companies, on receiving a request from Investor provide as soon as
                practicable to Investor copies of any documents, secretarial, accounting
                or other records which are prepared and maintained by Company and
                SMC
                Group Companies as may be required by Investor. The Investor shall
                have
                full and complete access to the premises, records, accounts, documents
                of
                Company, SMC Group Companies and their subsidiaries with rights,
                by itself
                or through its authorised representatives, to inspect such accounts,
                records and documents.

            

    

     

    
      	
              5.7.  

            	
              Listing
                of Subscription Shares. Company shall take necessary steps and the
                Promoters shall ensure that the Company makes necessary applications
                and
                ensure that the Subscription Shares of the Investors are listed on
                the
                regional stock exchanges where the Equity Shares of the Company are
                currently listed as soon as possible after
                Completion.

            

    

     

    
      	
              5.8.  

            	
              Investor
                shareholding. Promoters and the Company shall ensure that on
                completion of the proposed merger of SAM Global Securities Limited
                with
                the Company, the Investor will continue to hold at least 14.90% of
                the
                post merger issued and paid-up share capital of the Company, provided
                that, the Investor acquires 14.90% of the issued and paid-up share
                capital
                of SAM Global Securities Limited, pursuant to the Share Subscription
                Agreement executed between the Promoters of SAM Global Securities
                Limited,
                SAM Global Securities Limited and the Investor. It is clarified that
                such
                shareholding may not be maintained if the Investor divests its
                shareholding in the Company or SAM Global Securities Limited after
                Completion.

            

    

     

    
      	
              5.9.  

            	
              Listing.
                The Company shall and the Promoters shall ensure that the Equity
                Shares of
                the Company are listed on the Bombay Stock Exchange Limited and/or
                National Stock Exchange Limited within four (4) years from the date
                of
                Completion.

            

    

     

     

    
      	
              6.            

            	
              REPRESENTATIONS
                AND WARRANTIES

            

    

     

    
      	
              6.1.  

            	
              True
                and Accurate: The Warrantors represent, warrant and undertake to the
                Investor, that each of the statements set out in this Clause and
                Part 1 of
                Schedule 7 hereof, as applicable to the Warrantors,
                is now and will be true and accurate at the Completion Date. The
                Warrantors acknowledge that the Investor, in entering into this Agreement,
                is relying on such representations, warranties and undertakings and
                shall
                be entitled to treat the same as conditions of the
                Agreement.

            

    

     

    
      	
              6.2.  

            	
              Investor
                Representation: The Investor hereby represents and warrants that
                subject to the fulfillment of the Condition Precedent to this Agreement,
                it has the corporate power and authority to execute, delivers and
                perform
                this Agreement and the transactions contemplated herein. The execution,
                delivery and performance by the Investor of this Agreement has been
                duly
                authorized and approved by its board of directors. Investor additionally
                makes the representations and warranties as set out in this Clause
                and
                Part 2 of Schedule 7, is true now and will be true
                and accurate at the Completion
                Date.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
              6.3.  

            	
              Separate
                and Independent: Each of the Representations and Warranties shall be
                separate and independent and, save as expressly provided to the contrary,
                shall not be limited by reference to or inference from any other
                Representations and Warranty or any other term of this Agreement,
                which is
                not expressly referenced to the Representations and Warranty
                concerned.

            

    

     

    
      	
              6.4.  

            	
              Knowledge:
                If any Representation or Warranty is qualified by Knowledge, then
                it means
                that the Representation or Warranty has been made to the Knowledge
                of the
                Warrantors, after the Warrantors have made and caused to be made
                such due
                and proper inquiries as may be required in respect of the relevant
                matter
                to obtain informed Knowledge.

            

    

     

    
      	
              6.5.  

            	
              Undertaking:
                None of the Warrantors shall do, allow or procure any act or omission
                before the Completion Date which would respectively constitute a
                breach of
                any of the Representations and Warranties if they were given at the
                Completion Date, or which would make any of the Representations and
                Warranties inaccurate or misleading if they were so
                given.

            

    

     

    
      	
              6.6.  

            	
              Notification
                of breach: Each of the Warrantors hereby agree to disclose promptly to
                the Investor in writing immediately upon becoming aware of the same,
                any
                matter, event or circumstance (including any omission to act) which
                may
                arise or become known to it after the date of this Agreement
                which:

            

    

     

    
      	
              i.  

            	
              would
                render any of the Representations and Warranties to be
                inaccurate;

            

    

     

    
      	
              ii.  

            	
              in
                the Knowledge of the Warrantors has, or is likely to have, a Material
                Adverse Effect on the Company or SMC Group
                Companies.

            

    

     

    
      	
              6.7.  

            	
              Survival:
                The Representations and Warranties provided in this Agreement shall
                survive the Completion Date for a period of three (3)
                years.

            

    

     

    
      	
              6.8.  

            	
              Investor’s
                Reliance. The Company and the Promoter hereby agree and acknowledge
                that the Investor has agreed to subscribe to the Subscription Shares
                inter alia relying upon the Representations and
                Warranties.

            

    

     

     

    
      	
              7.            

            	
              INDEMNITY 

            

    

     

    
      	
              7.1.  

            	
              Without
                prejudice to any other right available to the Investor in law or
                under
                equity, the Company and the Promoters (“Indemnifying Party”) shall
                jointly and severally indemnify, defend and hold harmless the Investor,
                their Affiliates, directors, advisors, officers, employees and agents,
                (collectively the “Investor Indemnified Party”), from and against
                any and all direct and actual liabilities, damages, demands, Claims
                including third-party claims (“Third-Party Claims”), actions,
                judgments or causes of action, assessments, interest, fines, penalties,
                and other costs or expenses (including, without limitation, amounts
                paid
                in settlement, court costs and all reasonable attorneys’ fees and out of
                pocket expenses) (“Losses”) (excluding any indirect and remote
                Third Party Claims or loss of profit or opportunities or such punitive
                damages), directly or indirectly, based upon, arising out of, or
                in
                relation to or otherwise in respect
                of:

            

    

     

    
      	
              i.  

            	
              any
                willful misrepresentation or false information in or any breach of
                any
                Representation and Warranty, covenant or agreement of the Promoters
                or
                Company contained in this Agreement or any document or other papers
                delivered by any of them to the Investor (other than relating to
                forward
                looking statement and future projections or disclosed in the Disclosure
                Schedule) in connection with or pursuant to this
                Agreement;

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
              ii.  

            	
              any
                liability arising out of non compliance of any obligation undertaken
                by
                the Company or the Promoters;

            

    

     

    
      	
              iii.  

            	
              any
                liabilities and obligations of whatever nature relating to any litigation,
                Claim or governmental investigation pending or relating to the business
                or
                operations of the Promoters or the business of the Company or SMC
                Group
                Companies prior to the date of execution of this Agreement and as
                on the
                Completion Date and not disclosed in the Disclosure
                Schedule;

            

    

     

    
      	
              iv.  

            	
              any
                liability due to any non-compliance of any Applicable Law, rules
                or
                regulations prior to the date of execution of this Agreement and
                as on the
                Completion Date and not disclosed in the Disclosure
                Schedule.

            

    

     

    
      	
              v.  

            	
              Irrespective
                of any disclosures made in the Disclosure Schedule, any Losses
                arising  out of the termination of license obtained by the
                Company from National Stock
                Exchange

            

    

     

    
      	
              7.2.  

            	
              Limitation
                of Liability. The Company’s and the Promoters’ obligation to indemnify
                the Investor under Clause 7.1 and Clause 7.3 shall not exceed an
                amount
                equal to the Investment Amount. Provided further that, Promoters’
                obligation to indemnify the Investor under Clause 7.1 and Clause
                7.3 will
                be limited to the extent of and for the amount of shortfall in the
                Losses
                that the Company has failed to pay to the Investors in the first
                place.  Further, for the purposes of this Clause 7.1 and Clause
                7.3, the term Promoters shall only include: (i) Mr. M.C. Gupta, (ii)
                Mr.
                S.C. Gupta, (iii) Mrs. Sushma Gupta, and (iv) Mrs. Hemlata Aggarwal
                and no
                other Promoters as indicated in the Promoter
                Group.

            

    

     

    
      	
              7.3.  

            	
              Any
                compensation or indemnity as referred to in Clause 7.1 above shall
                be such
                as to place the Investor in the same position as it would have been
                in,
                had there not been any such breach and as if the Representation and
                Warranty under which Investor is to be indemnified, had been
                correct.

            

    

     

    
      	
              7.4.  

            	
              The
                Investor shall not assume in any manner, any responsibility or liability
                whatsoever in respect of the business of the Company, the SMC Group
                Companies, or its operations or activities, to any Person, firm,
                the
                company, body corporate or other entity and any authority, whether
                central, state, local, municipal or otherwise, in respect of any
                time
                prior to or after the Completion Date, nor assume any responsibility
                or
                liability for any non-compliance, of any Applicable Law, rules,
                regulations, any monetary or other
                liability.

            

    

     

    
      	
              7.5.  

            	
              Procedure
                for Indemnification:

            

    

     

    
      	
              i.  

            	
              The
                Investor Indemnified Party shall give notice to the Indemnifying
                Part of
                any Claim, specifying in reasonable detail the factual basis for
                the
                Claim, the amount thereof, estimated in good faith, all with reasonable
                particularity and containing a reference to the provisions of this
                Agreement in respect of which such Claim shall have
                occurred.

            

    

     

    
      	
              ii.  

            	
              With
                respect to Claim solely between the parties hereto, following receipt
                of
                written notice from the Indemnified Party of a Claim, the Indemnifying
                Party shall have fifteen (15) days to make such investigation of
                the Claim
                as the Indemnifying Party deems necessary or desirable, and the Investor
                Indemnified Party agrees to make available to the Indemnifying Party
                to
                substantiate the Claim. If the Investor Indemnified Party and the
                Indemnifying Party agree at or prior to the expiration of the fifteen
                (15)
                day period to the validity and amount of such Claim, or if the
                Indemnifying Party fails to notify the Indemnified Party of any dispute
                with respect to the validity or amount of such Claim within such
                fifteen
                (15) day period, the Indemnifying Party shall immediately pay to
                the
                Indemnified Party the full amount of the Claim, subject to the terms
                hereof. If the Investor Indemnified Party and the Indemnifying Part
                do not
                agree within the fifteen (15) day period, the Indemnifying Party
                shall
                immediately pay to the Indemnified Party the amount of such Claim
                to the
                extent the parties agree or remains undisputed, and the Investor
                Indemnified Party may seek appropriate remedy at law or equity, as
                applicable, subject to the limitations hereof, with respect to any
                portion
                of its Claim not paid by the Indemnifying Party
                hereunder.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
              iii.  

            	
              Third-Party
                Claims: The obligations and liabilities of each party to this
                Agreement under Clause 7.1 hereof related to Third-Party Claims shall
                be
                subject to the following terms and
                conditions:

            

    

     

    
      	
              a.  

            	
              At
                any time after receipt of notice of any Third-Party Claim asserted
                against, imposed upon or incurred by an Investor Indemnified Party,
                the
                Investor Indemnified Party shall notify the Indemnifying Party of
                such
                claim in writing. The Indemnifying Party shall be entitled, at its
                own
                expenses, to participate in and, upon written request from the Investor
                Indemnified Party, shall undertake the defense thereof in good faith
                by
                counsel of the Indemnifying Party’s own choosing, which counsel shall be
                satisfactory to the Investor Indemnified Party; provided, however,
                that
                (i) the Investor Indemnified Party shall at all times have the option,
                at
                its own expense, to participate fully therein (without controlling
                such
                action) and (ii) if in the Investor Indemnified Party’s judgment a
                conflict of interest exists, such Investor Indemnified Party shall
                be
                entitled to select counsel of its own choosing reasonably satisfactory
                to
                the Indemnifying Party, and the Indemnifying Party shall be obligated
                to
                pay the fees and expenses of such
                counsel.

            

    

     

    
      	
              b.  

            	
              If
                within thirty (30) days after written notice to the Investor Indemnified
                Party of the Indemnifying Party’s intention to undertake the defense of
                any Third-Party Claim the Indemnifying Party shall fail to defend
                the
                Investor Indemnified Party against such Third Party Claim, the Investor
                Indemnified Party will have the right (but not the obligation) to
                undertake the defense and/or enter into a compromise or settlement
                of such
                Third-Party Claim on behalf of, and for the account and at the risk
                of,
                the Indemnifying Party.

            

    

     

    
      	
              iv.  

            	
              Each
                Party shall provide the other with access to all records and documents
                within the first named party’s possession, custody or control relating to
                any Third Party Claim, and shall otherwise co-operate with the other
                Party
                with respect to defending any Third-Party
                Claim.

            

    

     

    
      	
              7.6.  

            	
              Other
                Rights and Remedies Not Affected: The Parties hereto acknowledge and
                agree that damages alone would not provide an adequate remedy for
                any
                breach or threatened breach of the provisions of this Agreement and
                therefore that, without prejudice to any and all other rights and
                remedies
                the Investor may have (including but not limited to, damages), the
                Investor shall be entitled to the remedies of injunction, specific
                performance and other equitable relief for any threatened or actual
                breach
                of the provisions of this Agreement. The remedies set forth in this
                Clause
                7 are cumulative and shall in no way limit any other remedy any party
                hereto has at law, in equity or pursuant
                hereto.

            

    

     

     

    
      	
              8.            

            	
              CO-OPERATION

            

    

     

    
      	
              8.1.  

            	
              The
                Parties shall use their best efforts to ensure that the transactions
                contemplated by this Agreement are consummated as per the terms hereof,
                including without limitation, obtaining all approvals from the applicable
                government and/or regulatory authorities and other Persons as may be
                necessary or reasonably requested by Investor in order to consummate
                the
                transaction contemplated by this
                Agreement.

            

    

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
              8.2.  

            	
              The
                Promoters, Promoter Group and the Company, in so far as the SMC Group
                Companies is concerned undertake to ensure that they, their
                representatives and proxies representing them at the general meetings
                of
                the Company and the SMC Group Companies, shall at all times exercise
                their
                votes and through their respective appointed/nominated Directors
                (or
                alternate Directors) at Board meetings and otherwise, act in such
                manner
                so as to comply with, and to fully and effectually implement the
                spirit,
                intent and specific provisions of this
                Agreement.

            

    

     

     

    
      	
              9.            

            	
              RESOLUTION
                OF DISPUTES

            

    

     

    
      	
              9.1.  

            	
              Amicable
                Settlement: If any dispute arises between Investor and/or the
                Promoters and/or Company during the subsistence of this Agreement
                or
                thereafter, in connection with the validity, interpretation,
                implementation or alleged breach of any provision of this Agreement
                or
                regarding a question, including the question as to whether the termination
                of this Agreement by one Party hereto has been legitimate
                (“Dispute”), the disputing Parties hereto shall endeavour to settle
                such Dispute amicably. The attempt to bring about an amicable settlement
                shall be considered to have failed if not resolved within 60 days
                from the date of the Dispute.

            

    

     

    
      	
              9.2.  

            	
              Conciliation:
                If the Parties are unable to amicably settle the Dispute in accordance
                with Clause 9.1 within the period specified therein, the Parties
                shall
                forthwith but not later than 30 days after expiry of the aforesaid
                period, refer the Dispute to conciliation for resolution of the said
                Dispute to a retired High Court Judge or a reputed Chartered Accountant
                acceptable to the Parties. The attempt to bring about such resolution
                shall be considered to have failed if not resolved within 30 days
                from the date of receipt of a written notification in this
                regard.

            

    

     

    
      	
              9.3.  

            	
              Arbitration:
                If the Parties are unable to amicably settle the Dispute in accordance
                with Clause 9.2 within the period specified therein, any Party to
                the
                Dispute shall be entitled to serve a notice invoking this Clause
                and
                making a reference to an arbitration panel of three arbitrators.
                Each
                party to the dispute shall appoint one arbitrator within 30 days of
                receipt of the notice of the Party making the reference, and the
                two
                arbitrators, so appointed shall appoint a third arbitrator. The
                Arbitration proceedings shall be held in accordance with the rules
                of the
                Singapore International Arbitration Centre. The decision of the
                arbitration panel shall be binding on all the Parties to the
                Dispute.

            

    

     

    
      	
              i.  

            	
              The
                place of the arbitration shall be
                Singapore.

            

    

     

    
      	
              ii.  

            	
              The
                proceedings of arbitration shall be in the English
                language.

            

    

     

    
      	
              iii.  

            	
              The
                Arbitrator’s award shall be substantiated in writing. The court of
                arbitration shall also decide on the costs of the arbitration proceedings.
                In case the arbitrators have not decided on the costs of the arbitration
                proceedings, each Party to the Dispute shall bear its own costs,
                in
                relation to the arbitration
                proceedings.

            

    

     

    
      	
              iv.  

            	
              The
                award shall be binding on the Parties subject to the Applicable Laws
                in
                force and the award shall be enforceable in any competent court of
                law.

            

    

     

    
      	
              v.  

            	
              The
                Indian courts shall have exclusive
                jurisdiction.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
              10.           

            	
              GOVERNING
                LAW

            

    

     

    This
      Agreement shall be governed by and construed under the laws of India, without
      regard to the conflicts of law provisions thereof.

     

     

    
      	
              11.           

            	
              NOTICES

            

    

     

    
      	
              11.1.  

            	
              Any
                notice or other communication that may be given by one Party to the
                other
                shall always be in writing and shall be served either by (i) hand
                delivery duly acknowledged; or (ii) sent by registered post with
                acknowledgment due; or (iii) by facsimile at the respective addresses
                set out herein below or at such other address as may be subsequently
                intimated by one party to the other in writing as set out herein.
                If the
                notice is sent by facsimile, the said notice shall also be sent by
                registered post acknowledgment due.

            

    

     

                                                      

    
      	
              The
                Investor:

            	
              Mr.
                F. Jacob Cherian

            

      	
              Address:

            	
              330
                East, 38th Street, suite 46C, New York, NY 10016,
                USA

            

    

    
      	
              Tel:

            	
               

            	
              +1
                917 528 5632

            

    

    

    

    
      	
               

            	
              With
                a copy to:

            

    

    

    
      	
              (i)  
                 

            	
              Ira
                Roxland

            

    

    Sonnenschein
      Nath & Rosenthal
      LLP

    1221
      Aevnue of the
      Americas

    New
      York, NY 10020-1089

    Fax:
      +1 212 768 6800

    

    
      	
              (ii)  

            	
              Rajesh
                Begur

            

    

    A.R.A.
      LAW

    3/F
      Mahatma Gandhi Road

    Charni
      Road (West)

    Mumbai
–
400
      002

    Fax:
      +91 222 2284 1800

     

    The
      Company:      SMC Global Securities
      Limited

    
      	
              Address:

            	
              17,
                Netaji Subhash Marg, Darya Ganj, New Delhi -
                110002

            

    

    
      	
              Tel:

            	
               

            	
              011-30111000

            

    

    
      	
              Facsimile:

            	
              011-23263297

            

    

    
      	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

     

    The
      Promoter No.1:   Mr.
      S.C
      Aggarwal

    
      	
              Address:

            	
              C-335,
                Saraswati Vihar, New Delhi - 110088

            

    

    
      	
              Tel:

            	
               

            	
              011
                - 3111000

            

    

    
      	
              Facsimile:

            	
              011
                - 23263297

            

    

    

    The
      Promoter No.2:   Mr.
      M.C
      Gupta

    
      	
              Address:

            	
              C-39,
                Anand Vihar, I.P. Extention, New Delhi -
                110092

            

    

    
      	
              Tel:

            	
               

            	
              011
                - 3111000

            

    

    
      	
              Facsimile:

            	
              011
                - 23263297

            

    

     

    
      	
              11.2.  

            	
              All
                notices shall be deemed to have been validly given on (i) the
                business date immediately after the date of transmission with confirmed
                answer back, if transmitted by facsimile transmission, or (ii) the
                business date of receipt, if sent by courier or hand delivery; or
                (iii) the expiry of seven days after posting, if sent by registered
                post.

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              11.3.  

            	
              Any
                Party may, from time to time, change its address or representative
                for
                receipt of notices provided for in this Agreement by giving to the
                other
                Party not less than 10 days prior written
                notice. 

            

    

     

     

    
      	
              12.          

            	
              TERM

            

    

     

    This
      Agreement shall come into effect and force and be binding on the Parties from
      the date first written above and shall remain in full force for a period of
      three years unless:

    

    
      	
              (i)  

            	
              terminated
                in accordance with the provisions of this Agreement,
                or

            

    

    

    
      	
              (ii)  

            	
              the
                Investor failing to hold at least 7.451% of the issued and paid-up
                share
                capital of the Company at Completion. For computing the paid-up equity
                share capital the bonus shares and subsequent increase in the capital
                pursuant to the merger with SAM Global Securities Limited and any
                100%
                subsidiary of the Company shall be included, whichever is
                earlier.

            

    

     

    
      	
              13.          

            	
              CONFIDENTIALITY
                AND PUBLICITY

            

    

     

    
      	
              13.1.  

            	
              The
                Parties recognize that each of them will be given and have access
                to
                confidential and proprietary information of the other Parties. The
                Parties
                undertake not to use any of such confidential information for their
                own
                corporate purposes without the prior written consent of the Party
                owning
                such information and shall use their best efforts to keep confidential
                and
                not to disclose to any third party any of the other Parties’ confidential
                and proprietary information. The Parties shall also cause their respective
                directors, employees, officers and any other persons to whom the
                above
                mentioned information is disclosed to execute a letter of confidentiality
                to the effect provided in this Clause. The obligations of confidentiality
                shall not apply to any information
                that: 

            

    

     

    
      	
              i.  

            	
              was
                developed independently by the
                Parties;

            

    

     

    
      	
              ii.  

            	
              was
                known to the Party prior to its disclosure by the disclosing
                Party;

            

    

     

    
      	
              iii.  

            	
              has
                become generally available to the public (other than by virtue of
                its
                disclosure by the receiving Party);

            

    

     

    
      	
              iv.  

            	
              may
                be required in any report, statement or test, the Company submitted
                to any
                governmental or regulatory body;

            

    

     

    
      	
              v.  

            	
               may
                be required in response to any summons or subpoena or in connection
                with
                any litigation; or

            

    

     

    
      	
              vi.  

            	
               may
                be required to comply with any law, order, regulation or ruling applicable
                to any Party hereto.

            

    

     

    Provided
      that prior to any disclosure in respect of a request to disclose confidential
      information under subclauses (iv), (v) and (vi), above a Party must first notify
      the Party owning such confidential information, who shall then have the
      opportunity to respond to and/or dispute such request. The provisions of this
      Clause shall survive the termination of this Agreement.

     

    
      	
              13.2.  

            	
              Upon
                termination of this Agreement, the Parties shall cause the Company
                to
                either (i) return to the Investor and the Promoter, as applicable,
                and the
                Parties shall return to each other, all documents and information
                belonging to such Person and all copies thereof in the possession
                or under
                the control of a Party which does not own such property, and all
                confidential information in whatever media; or (ii) destroy all
                documents and information belonging to the other Party and all copies
                thereof in the possession or under the control of a
                Party.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	
              13.3.  

            	
              Publicity.
                Except as required by Applicable Law, the Company, Promoters and
                the
                Investor (or any of their respective Affiliates) shall not, and the
                Promoters shall cause the Company not to, without the prior written
                consent of each other Party hereto, which consent shall not be
                unreasonably withheld or delayed, make any public announcement or
                issue
                any press release with respect to the transactions contemplated by
                this
                Agreement. Prior to making any public disclosure required by Applicable
                Law, the disclosing party shall consult with the other Parties hereto,
                to
                the extent feasible, as to the content and timing of such public
                announcement or press release.

            

    

     

     

    
      	
              14.          

            	
              AUTHORISED
                PERSON

            

    

     

    For
      the
      purposes of this Agreement, the SMC Group Companies and Promoter Group shall
      be
      represented by Mr. S.C. Aggarwal and Mr. M.C. Gupta, jointly and severally.
      Accordingly, the SMC Group Companies and Promoter Group hereby authorise Mr.
      S.C. Aggarwal and Mr. M.C. Gupta to, jointly and severally, represent and take
      any decision which may be required to be taken, do all acts and execute all
      documents which are or may be required by the SMC Group Companies and Promoter
      Group for the proper and effective fulfillment of the rights and obligations
      under this Agreement. Any action taken or deed performed or document executed
      by
      Mr. S.C Aggarwal and/or Mr. M.C. Gupta shall be deemed to be acts or deeds
      done
      or documents executed by all the SMC Group Companies and/or Promoter Group,
      and
      shall be binding on all the SMC Group Companies and Promoter Group.

     

     

    
      	
              15.          

            	
              TERMINATION

            

    

     

    
      	
              15.1.  

            	
              Termination
                before Completion:

            

    

     

    
      	
              i.  

            	
              Grounds
                of Termination. This Agreement may be terminated at any time prior to
                Completion upon the occurrence of any of the following
                events:

            

    

     

    
      	
              a.  

            	
              By
                mutual written agreement of the
                Parties.

            

    

     

    
      	
              b.  

            	
              By
                the Investor upon written notice to the Promoters and Company, if
                there
                shall have been: (i) a breach of any Representation and Warranty
                made
                under this Agreement, or if any Representation and Warranty shall
                have
                become untrue in any respect, or (ii) a breach by the Warrantors
                of any of
                their covenants or agreements hereunder and such breach is not cured
                within thirty (30) days after notice thereof by the Non-defaulting
                Party,
                or (iii) in case of Material Adverse
                Effect.

            

    

     

    
      	
              c.  

            	
              By
                the Investor only, upon written notice to Promoters and Company,
                if any
                Governmental Authority of competent jurisdiction shall have issued
                any
                judgment, injunction, order, ruling or decree or taken any other
                action
                restraining, enjoining or otherwise prohibiting the consummation
                of the
                transactions contemplated by this
                Agreement.

            

    

     

    
      	
              d.  

            	
              By
                the Investor only, in the event the Company or any SMC Group Companies
                or
                any Promoter becomes or is declared insolvent or bankrupt, makes
                an
                assignment for the benefit of all or substantially all of its creditors,
                enters into an agreement for the composition, extension or readjustment
                of
                all or substantially all or of its obligations, or becomes the subject
                of
                any Proceedings related to its liquidation or insolvency or for the
                appointment of a receiver or similar
                officer.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	
              e.  

            	
              By
                the Promoters only, in the event the if the Investor becomes or is
                declared insolvent or bankrupt, makes an assignment for the benefit
                of all
                or substantially all of its creditors, enters into an agreement for
                the
                composition, extension or readjustment of all or substantially all
                or of
                its obligations, or becomes the subject of any Proceedings related
                to its
                liquidation or insolvency or for the appointment of a receiver or
                similar
                officer.

            

    

     

    
      	
              f.  

            	
              By
                Investors only, on termination of the Share Subscription Agreement
                and/or
                Shareholders Agreement with SAM Global Securities Limited for any
                reason
                whatsoever attributable to the Company and the
                Promoters.

            

    

     

    
      	
              ii.  

            	
              The
                Parties acknowledge and agree that Promoters must exercise the right
                to
                terminate this Agreement pursuant to Clause 15 as a group and that
                no
                individual Promoter shall have the right to exercise such right without
                agreement of the other Promoters.

            

    

     

    
      	
              iii.  

            	
              Effect
                of Termination Before Closing: The provisions of Clause 7 (Indemnity),
                Clause 9 (Resolution of Disputes), Clause 10 (Governing Law), Clause
                13
                (Confidentiality), Clause 16 (Miscellaneous Provisions) and this
                Clause
                15.1(iii)shall survive the termination
                hereof. 

            

    

     

    
      	
              15.2.  

            	
              Termination
                after Completion.

            

    

     

    
      	
              i.  

            	
              Grounds
                of Termination. This Agreement may be terminated after Completion as
                follows:

            

    

     

    
      	
              a.  

            	
              If
                so agreed in writing by Promoters and
                Investors.

            

    

     

    
      	
              b.  

            	
              By
                the Investor with immediate effect by notice in writing to the Promoters
                if the Company or any of the SMC Group Companies is declared insolvent,
                bankrupt, industrially sick, or is unable to pay its debts, or enters
                into
                a compromise or any arrangement with its creditors, or in the event
                that a
                trustee, receiver or liquidator is appointed to take over all or
                a
                substantial part of the assets of the Company or any SMC Group Companies
                or if the Company or any SMC Group Companies are liquidated or
                dissolved.

            

    

     

    
      	
              c.  

            	
              If
                the Promoters or Company or SMC Group Companies or any of them (the
                “Defaulting Party”) commits any material breach under this Agreement which
                has Material Adverse Effect, the Investors may terminate this Agreement
                with immediate effect if such material breach is not remedied within
                thirty (30) days after receipt by the Defaulting Party of a written
                notification of default from the
                Investor

            

    

     

    
      	
              d.  

            	
              By
                the Promoters with immediate effect by notice in writing to the Investor,
                if the Investor is declared insolvent, bankrupt, industrially sick
                or is
                unable to pay its debts, or enters into a compromise or any arrangement
                with its creditors, or in the event that a trustee, receiver or liquidator
                is appointed to take over all or a substantial part of the assets
                of the
                Investor or if the Investor is liquidated or
                dissolved.

            

    

     

    
      	
              e.  

            	
              By
                the Investor, if at any time the facts emerge indicating that the
                Company
                and / or Promoters have intentionally withheld or suppressed information
                or made any misrepresentations which would have had a Material Adverse
                Effect.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	
              f.  

            	
              By
                Investors only, on termination of the Share Subscription Agreement
                and/or
                Shareholders Agreement with SAM Global Securities Limited for any
                reason
                whatsoever attributable to the Company and the
                Promoters.

            

    

     

    
      	
              g.  

            	
              By
                the Investor, if within four years from the signing of this Agreement,
                conditions exist that would allow for a listing of the Company’s equity
                shares on any agreed Indian stock exchange(s) as contemplated in
                Clause
                5.8 of the Agreement and the Company and/or the Promoters decide
                for
                reasons of their own not to seek a listing or unless such listing
                is
                postponed at the request of  the
                Investor.

            

    

     

    
      	
              ii.  

            	
              The
                provisions of Clause 6 (Representation and Warranty), Clause 7
                (Indemnity), Clause 9 (Resolution of Disputes), Clause 10 (Governing
                Law),
                Clause 13 (Confidentiality), Clause 16 (Miscellaneous Provisions)
                and this
                Clause 15.2 (ii)shall survive the termination
                hereof.

            

    

     

     

    
      	
              16.          

            	
              MISCELLANEOUS
                PROVISIONS

            

    

     

    
      	
              16.1.  

            	
              Reservation
                of Rights: No forbearance, indulgence or relaxation or inaction by any
                Party at any time to require performance of any of the provisions
                of this
                Agreement shall in any way affect, diminish or prejudice the right
                of such
                Party to require performance of that provision, and any waiver or
                acquiescence by any Party of any breach of any of the provisions
                of this
                Agreement shall not be construed as a waiver or acquiescence of any
                continuing or succeeding breach of such provisions, a waiver of any
                right
                under or arising out of this Agreement or acquiescence to or recognition
                of rights other than that expressly stipulated in this
                Agreement.

            

    

     

    
      	
              16.2.  

            	
              Cumulative
                Rights: All remedies of either Party under this Agreement whether
                provided herein or conferred by statute, civil law, common law, custom
                or
                trade usage, are cumulative and not alternative and may be enforced
                successively or concurrently.

            

    

     

    
      	
              16.3.  

            	
              Partial
                Invalidity: If any provision of this Agreement or the application
                thereof to any Person or circumstance shall be invalid or unenforceable
                to
                any extent, the remainder of this Agreement and the application of
                such
                provision to persons or circumstances other than those as to which
                it is
                held invalid or unenforceable shall not be affected thereby, and
                each
                provision of this Agreement shall be valid and enforceable to the
                fullest
                extent permitted by law. Any invalid or unenforceable provision of
                this
                Agreement shall be replaced with a provision, which is valid and
                enforceable and most nearly reflects the original intent of the
                unenforceable provision. Provided however, if said provision is
                fundamental provision of this Agreement or forms part of the consideration
                or object of this Agreement, the provision of this Clause shall not
                apply. 

            

    

     

    
      	
              16.4.  

            	
              Amendments:
                No modification or amendment of this Agreement and no waiver of any
                of the
                terms or conditions hereof shall be valid or binding unless made
                in
                writing and duly executed by all the Parties. The Parties may mutually
                agree to amend or waive any terms of this
                Agreement.

            

    

     

    
      	
              16.5.  

            	
              Assignment:
                This Agreement and the rights and liabilities hereunder shall bind
                and
                inure to the benefit of the respective successors of the Parties
                hereto,
                but no Party shall assign or transfer any of its rights and liabilities
                hereunder to any other Person without the prior written consent of
                the
                other Parties which will not be unreasonably withheld. Notwithstanding
                anything stated above, the Investor shall be entitled to assign its
                rights
                and obligations hereunder to any of its Affiliates without the consent
                of
                the other Parties provided that Investor shall continue to be liable
                for
                the Investment Amount, subject to terms of this Agreement, irrespective
                of
                such assignment.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
              16.6.  

            	
              Entire
                Agreement: This Agreement constitutes the entire Agreement between the
                Parties with respect to the subscription and purchase of Subscription
                Shares and supersedes and cancels any prior oral or written agreement,
                representation, understanding, arrangement, communication or expression
                of
                intent relating to the subject matter of this
                Agreement.

            

    

     

    
      	
              16.7.  

            	
              Relationship:
                None of the provisions of this Agreement shall be deemed to constitute
                a
                partnership between the Parties hereto and no Party shall have any
                authority to bind the other Party otherwise than under this Agreement
                or
                shall be deemed to be the agent of the other in any
                way.

            

    

     

    
      	
              16.8.  

            	
              Costs:
                Each Party shall bear its own expenses incurred in preparing this
                Agreement. The stamp duty and other costs payable: (i) on this Agreement,
                (ii) the issue of Subscription Shares to the Investor and (iii) transfer
                of shares in order to restructure the shareholding of SMC Group Companies
                as contemplated under this Agreement, shall be borne by the Company
                or SMC
                Group Companies.

            

    

     

    
      	
              16.9.  

            	
              Force
                Majeure: No Party shall be liable to the other if, and to the extent,
                that the performance or delay in performance of any of its obligations
                under this Agreement is prevented, restricted, delayed or interfered
                with
                due to circumstances beyond the reasonable control of such Party,
                including but not limited to, Government legislations, fires, floods,
                explosions, epidemics, accidents, acts of God, wars, riots, strikes,
                lockouts, or other concerted acts of workmen, acts of Government
                and/or
                shortages of materials. The Party claiming an event of force majeure
                shall promptly notify the other Parties in writing, and provide
                full
                particulars of the cause or event and the date of first occurrence
                thereof, as soon as possible after the event and also keep the other
                Parties informed of any further developments. The Party so affected
                shall
                use its best efforts to remove the cause of non-performance, and
                the
                Parties shall resume performance hereunder with the utmost dispatch
                when
                such cause is removed. However, it is agreed between the Parties
                that if
                such event continues for more than 60 (sixty) days the affected Party
                may
                terminate this Agreement thereafter, unless mutually agreed between
                the
                Parties.

            

    

     

    
      	
              16.10.  

            	
              Severance:
                Any provision of this Agreement which is invalid or unenforceable
                under
                Applicable Law shall be ineffective to the extent of such invalidity
                or
                unenforceability, without affecting in any way the validity, legality
                and
                enforceability of the remaining provisions hereof. Should any provision
                of
                this Agreement be or become ineffective for reasons beyond the control
                of
                the Parties including any provisions under Applicable Law, the Parties
                shall use reasonable efforts to agree upon a new provision which
                shall as
                nearly as possible have the same commercial effect as the inefficient
                provision.

            

    

     

    
      	
              16.11.  

            	
              Good
                Faith Negotiations and Further Assurances: Subject to Clause 15.1, the
                Parties agree that if the transactions contemplated in this Agreement
                cannot be completed in the manner set forth herein, then the Parties
                shall
                use reasonable endeavours to enter into other transaction, no later
                than
                sixty (60) days from the expiration of one hundred and sixty five
                (165)
                days period from the Effective Date, that (a) would result in a
                substantially similar outcome and (b) do not materially prejudice any
                of the Parties. Each of the Parties further agrees that, during any
                such
                negotiations, it shall refrain from initiating any legal actions
                against
                the other Parties.

            

    

     

    
      	
              16.12.  

            	
              Execution
                in Counterparts: This Agreement may be executed in one or more
                counterparts, each of which shall be deemed an original and all of
                which,
                taken together, shall constitute one and the same
                instrument.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	
              16.13.  

            	
              Authorisation:
                The persons signing this Agreement on behalf of the Parties represent
                and
                covenant that they have the authority to so sign and execute this
                document
                on behalf of the Parties for whom they are
                signing.

            

    

     

    Signature
      Page Follows:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF THE PARTIES HERETO HAVE SET AND SUBSCRIBED THEIR RESPECTIVE
      HANDS TO THESE PRESENTS ON THE DAY, MONTH AND YEAR HEREIN
      WRITTEN:

                                                                                                                      

    

    
      	
              Millennium
                India Acquisition Company Inc.

            	 	
              SMC
                Global Securities Limited

            
	 	 	 
	 	 	 	 	 
	
              Name:
                Mr. F Jacob CHERIAN

            	 	
              Name:
                Mr. S.C. AGGARWAL

            
	
              Title:
                CEO & President

            	 	
              Title:
                Chairman and

            	 
	 	 	 	
              Managing
                Director

            	 
	 	 	 	 	 
	 	 	 	 	 
	
              Name:
                Mr. Suhel KANUGA

            	 	 	 
	
              Title:
                CFO and Exec Vice President

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              PROMOTERS
                AND PROMOERS GROUP

            
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              Mr.
                M.C. GUPTA

            	 	 	
              Mr.
                S.C. AGGARWAL

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              Mr.
                M.C. GUPTA  and Mr. S.C. AGGARWAL

            	 	 	 
	
              (for
                and on behalf of following companies: (i) SMC Comtrade Limited, (ii)
                DSP
                Insurance Brokers Limited, (iii) Nexgen Capitals Limited, (iv) SMC
                Comex
                International DMCC, (v) Abhichaya Investment Private Limited, and
                (vi)
                Pulin Investment Private Limited pursuant to respective board resolution
                dated May      , 2007)

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              Mr.
                S.C. AGGARWAL and Mr. M.C. Gupta (for and on behalf of the Promoter
                Group)

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

     

    
 

    

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1 -   PROMOTER AND PROMOTER GROUP

     

    

    PROMOTERS

    

    
      	
              Name
                of Shareholders

            	
              No.
                of Shares

            	
              Percentage

            
	 	
               

            	
               

            
	
              Mahesh
                C. Gupta

            	
              1024850

            	
              13.66

            
	
              Subhash
                Chand Aggarwal

            	
              1009550

            	
              13.45

            

    

     

    
 

    

    PROMOTERS
      GROUP

    

    
      	
              Name
                of Shareholders

            	
              No.
                of Shares

            	
              Percentage

            
	
              Sushma
                Gupta

            	
              833100

            	
              11.10

            
	
              Hemlata
                Aggarwal

            	
              828500

            	
              11.04

            
	
              Ginni
                Devi

            	
              220000

            	
              2.93

            
	
              Madan
                Gopal Aggarwal

            	
              98400

            	
              1.31

            
	
              Dinesh
                Chand Gupta

            	
              100100

            	
              1.33

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2 — COMPANY
      AND
      SMC GROUP COMPANIES

     

    

    
      	
              S.
                No.

            	
              Name
                of Company

            	
              Status

            	
              Activity

            
	 	 	 	 
	
              1.

               

               

               

               

               

               

               

               

               

              2.

            	
              SMC
                Global Securities Limited

               

               

               

               

               

               

               

               

               

              SMC
                Group Companies

               

               

            	
              ·  Registered
                as Member with NSE for Capital Market

              ·  Registered
                as Member with NSE as trading and clearing member in F&O segment
                Dealer of OTCEI and Member of Ludhiana Stock Exchange

              ·  AMFI
                registered mutual fund distributor

            	
              ·  Trading/
                Broking in:

              -
                Capital Market Segment

              -
                Future & Option Market Segment

              ·  Mutual
                Fund Distribution

              ·  IPO
                Distribution

              ·  Online
                trading

              ·  Clearing
                member (F & O)

               

               

               

               

               

            
	
              a)

            	
              SMC
                Comtrade Limited

            	
              Member
                NCDEX and MCX

            	
              Trading/Broking
                in Commodities

            
	
              b)

            	
              SMC
                Comex International DMCC

            	
              Member
                DGCX

            	
              Trading/Broking
                in Commodities

            
	
              c)

            	
              DSP
                Insurance Brokers Private Limited

            	
              Direct
                broker registered with IRDA

            	
              Broking
                and distribution of life and non-life insurance
                products

            
	
              d)

            	
              Pulin
                Investment Private Limited

            	
              Investment
                Company

            	
              Investment

            
	
              e)

            	
              Abhichhaya
                Investment Private Limited

            	
              Investment
                Company

            	
              Investment

            
	
              f)

            	
              Nexgen
                Capitals Limited

            	
              Category-I
                Merchant Banker

            	
              Merchant
                Banking Activities

            

    

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3 – POST COMPLETION SHAREHOLDING STRUCTURE

    

    SMC
      GLOBAL SECURITIES LIMITED

    

    
      	
              Name
                of Shareholders

            	
               No.
                of Shares

            	
              Percentage

            
	
              Mahesh
                C. Gupta

            	
                    1,024,850

            	
              11.62

            
	
              Subhash
                Chand Aggarwal

            	
                    1,009,550

            	
              11.45

            
	
              Sushma
                Gupta

            	
                       833,100

            	
              9.45

            
	
              Hemlata
                Aggarwal

            	
                       828,500

            	
              9.39

            
	
              Ginni
                Devi

            	
                       220,000

            	
              2.49

            
	
              Madan
                Gopal Aggarwal

            	
                         98,400

            	
              1.12

            
	
              Dinesh
                Chand Gupta

            	
                       100,100

            	
              1.14

            
	
              Millennium
                India Acquistion Company Inc

            	
                    1,314,054

            	
              14.90

            
	
              Others

            	
                    3,390,600

            	
              38.45

            
	
               

            	
               

            	
               

            
	
              Total

            	
                    8,819,154

            	
              100.00

            

    

    

    SMC
      COMTRADE LIMITED

    

    
      	
              Name
                of Shareholder

            	
              No.
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                GLOBAL SECURITIES LTD.

            	
              99,994

            	
              99.994

            
	
              M.G.
                Aggarwal

            	
              1

            	
              0.001

            
	
              Sushma
                Gupta

            	
              1

            	
              0.001

            
	
              Hemlata
                Aggarwal

            	
              1

            	
              0.001

            
	
              Shyam
                Sunder Gupta

            	
              1

            	
              0.001

            
	
              S.C.
                Aggarwal

            	
              1

            	
              0.001

            
	
              Mr.
                Mahesh C. Gupta

            	
              1

            	
              0.001

            
	
               

            	
               

            	
               

            
	
              TOTAL

            	
              100,000

            	
              100

            

    

    

    SMC
      COMEX INTERNATIONAL DMCC

    

    
      	
              Name
                of Shareholder

            	
              No.
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                Comptrade Limited

            	
              1,300

            	
              100

            
	 	
              1,300

            	
              100

            

    

    

    ABHICHHAYA
      INVESTMENTS PRIVATE LIMITED

    

    
      	
              Name
                of Shareholder

            	
              No.
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              Promoters

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              18,200

            	
              39.91

            
	
              SAM
                Global Securities Ltd.

            	
              12,200

            	
              26.75

            
	
              Others

            	
              15,200

            	
              33.34

            
	
              TOTAL

            	
              45,600

            	
              100

            

    

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    PULIN
      INVESTMENTS PRIVATE LIMITED

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              14,000

            	
              39.88

            
	
              SAM
                Global Securities Ltd.

            	
              9,400

            	
              26.78

            
	
              Others

            	
              11,700

            	
              33.34

            
	
              TOTAL

            	
              35,100

            	
              100

            

    

    

    NEXGEN
      CAPITALS LIMITED

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              Abhichhaya
                Investments (P) Ltd.

            	
              1,141,897

            	
              44.93

            
	
              Pulin
                Investments (P) Ltd.

            	
              1,195,363

            	
              47.03

            
	
              SMC
                Comtrade Limited

            	
              69,600

            	
              2.74

            
	
              Others

            	
              134,800

            	
              5.3

            
	
              TOTAL

            	
              2,541,660

            	
              100

            

    

    

    

    DSP
      INSURANCE BROKERS (PRIVATE) LIMITED

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              599,900

            	
              99.983

            
	
              Mahesh
                C Gupta

            	
              100

            	
              0.017

            
	
              TOTAL

            	
              600,000

            	
              100

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4 - CONDITIONS PRECEDENT

    

    
      	
               

            	
              PART
                1: CONDITIONS PRECEDENT OF PROMOTERS AND THE
                COMPANY

            

    

    

    
      	
              1.  

            	
              Board
                approval by Company: The Board of Directors shall have passed
                necessary resolutions at duly constituted meetings approving the
                issue of
                the Subscription Shares.

            

    

    

    
      	
              2.  

            	
              Shareholders
                approval by Company: The Company shall have been passed at a
                resolution at its general meeting approving resolution under section
                81(1A) of the Act the preferential allotment of the Subscription
                Shares to
                the Investor.

            

    

    

    
      	
              3.  

            	
              Increase
                Authorized Share Capital: The Company shall have increased its
                authorized share capital as necessary to issue the Subscription Shares
                to
                Investor and the Company shall have paid the necessary stamp duties
                and
                filed necessary forms with Registrar of
                Companies.

            

    

    

    
      	
              4.  

            	
              Articles
                of Association.  Shareholders approval shall have been
                obtained for amending Articles of Association of the Company and
                SMC Group
                Companies in a manner necessary to facilitate the transaction contemplated
                by this Agreement.

            

    

    

    
      	
              5.  

            	
              Shareholding
                of SMC Group Companies: Each of the SMC Group Companies shall have
                changed the existing shareholding structure in a manner to ensure
                that the
                shareholding of SMC Group Companies reflects the proposed shareholding
                structure as specified in Schedule 8
                hereto.

            

    

    

    
      	
              6.  

            	
              Material
                Adverse Effect. There shall not have been any event, such as, (i)
                termination or cancellation of material Licenses of the Company or
                SMC
                Group Company, (ii) any event that materially hinders the ability
                to
                consummate the transaction contemplated by this Agreement, (iii)
                any event
                that effects the business or operations of the Company or SMC Group
                Companies that has Material Adverse
                Effect.

            

    

    

    
      	
              7.  

            	
              Listing.
                Obtain in-principal approval for listing of Subscription Shares
                on the
                regional stock exchanges where the shares of the Company are currently
                listed.

            

    

    

    
      	
              8.  

            	
              Agreement.
                The Promoters of SAM Global Securities Limited, Investor and
                SAM
                Global Securities Limited shall have executed a Share Subscription
                Agreement and Shareholders Agreement in a form acceptable to the
                Parties
                and shall have completed the Closing as contemplated in such
                agreement.

            

    

    

    
      	
              9.  

            	
              Dubai
                Subsidiary: The Promoters shall obtain certificate confirming that the
                Dubai subsidiary is in compliance of all applicable laws and regulations
                and in good standing.

            

    

    

    
      	
              10.  

            	
              Employment
                Agreements. (i) The directors of the companies forming part of the SMC
                Group shall have entered into employment contracts with their respective
                companies setting out the specific terms and conditions of their
                employment with the company, (ii) All Key Employees (as set out in
                Annexure “3”) of the SMC Group Companies shall have entered into a
                standard format employment agreement, incorporating provisions relating
                to
                the adoption of Chinese walls, handling of price sensitive information
                and
                non-compete and non-solicitation obligations, and (iii) All employees,
                on
                or before Completion or within 60 days from Completion, shall have
                entered
                into a standard format employment agreement, incorporating provisions
                relating to the adoption of Chinese walls, handling of price sensitive
                information and non-compete and non-solicitation
                obligations.

            

    

    

    
      	
              11.  

            	
              Compliance
                Certificate.  The Company and each of SMC Group Companies
                shall have obtained a certificate from a practicing Company Secretary
                confirming that the statutory records have been updated as required
                under
                Applicable Laws.

            

    

     

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    
      	
              12.  

            	
              Bank
                details: The Company shall have provided details of the bank account
                of the Company maintained with the Authorised Dealer to the Investor
                for
                the purpose of receiving the Investment Amount under this
                Agreement.

            

    

    

    
      	
              13.  

            	
              Financial
                Statements: The Investor shall have received from the Promoters and
                the Company (i) two years Balance Sheet and Profit and Loss Account
                for
                the period ended March 31, 2007 and March 31, 2006, and (ii)
                three years Profit and Loss Account for the period ended March 31,
                2007,
                March 31, 2006 and March 31, 2005 (“Financial Statement”)
                prepared and translated in accordance with US GAAP and re-audited
                by a
                Public Company Accounting Oversight Board accounting firm acceptable
                to
                the Investor.

            

    

    

    
      	
              14.  

            	
              No
                Objection Letter: The Promoters, the Company and SMC Group Companies
                shall have delivered to the Investor a No Objection Letter pursuant
                to
                Press Note No. 1 and Press Note No. 3 of 2005, in a form attached
                as
                Annexure “2” of this Agreement and shall be signed and delivered to
                the Investor by the Promoters, the Company and SMC Group Companies
                on or
                before Completion.

            

    

    

    
      	
              15.  

            	
              Change
                of Name. Make application for change of
                corporate name of DSP Insurance Brokers Private Limited to
                such other name as is approved by the Board of Directors and the
                Registrar
                of Companies and Insurance Regulatory and Development Authority of
                India
                dropping the words “DSP” from the corporate
                name.

            

    

    

    
      	
              16.  

            	
              Regulatory
                Approvals: The Promoters, the Company and SMC Group Companies shall
                have obtained necessary regulatory approvals as specified in
                Schedule 9 attached hereto and complied with the
                requirements of Listing Agreement with respect to the transaction
                as
                contemplated in this Agreement and the resulting change in the
                shareholding of the SMC Group Companies, directly or indirectly,
                shall be
                in compliance with the requirements of Applicable
                Laws.

            

    

    

    
      	
              17.  

            	
              Financial
                Statement. The translation and re-audit of Financial Statements in US
                GAAP shall not have resulted in any variance of more than 25% to
                the
                Financial Statements prepared under Indian
                GAAP.

            

    

    

    
      	
              18.  

            	
              Name
                License Agreement. Mr. M.C. Gupta, Mr. S.C. Aggarwal and SAM Global
                Securities Limited shall have executed a Name License Agreement with
                the
                Company for assigning the use of the words “SMC” as part of its corporate
                name at a nominal fee and agreeing that a similar license shall not
                be
                given to any other entity engaged in the similar line of Business
                except
                as provided in the Disclosure Schedule. Provided that such companies
                shall
                execute similar agreement with the Company confirming that it shall
                not
                permit use of the word “SMC” to any other entity without prior approval of
                the Company.

            

    

    

    

    
      	
               

            	
              PART
                2:   CONDITIONS PRECEDENT OF
                INVESTOR

            

    

    

    
      	
              1.  

            	
              Financial
                Statements: The translation and re-audit of Financial Statements in US
                GAAP shall not have resulted in any variance of more than 25% from
                the
                Financial Statements prepared under Indian
                GAAP.

            

    

    

    
      	
              2.  

            	
              Consent
                by Investor: (i) US Securities and Exchange Commission would have
                advised that there are no further comments to the proxy statement
                filed by
                the Investor in accordance with the requirements of the laws of United
                States, (ii) the shareholders of the Investor would have passed resolution
                approving the investments in the Company, and (iii) holders of no
                greater
                than 19.9% of equity interest of the Investor should have sought
                redemption of their equity shares;

            

    

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    
      	
              3.  

            	
              KYC
                Compliance:  The Investor shall have satisfied the Know Your
                Client norms to ascertain that the Investor is an ‘eligible investor’ in
                accordance with the laws of United
                States;

            

    

    

    
      	
              
                4.  

              

            	
              Regulatory
                Approvals: The Investor shall have obtained Foreign Investment
                Promotion Board approval as specified in Schedule 9 attached
                hereto.

            

    

    

    
      	
              5.  

            	
              Agreement.
                The Promoters of SAM Global Securities Limited, Investor and
                SAM
                Global Securities Limited shall have executed a Share Subscription
                Agreement and Shareholders Agreement in a form acceptable to the
                Parties
                and shall have completed the Closing as contemplated in such
                agreement.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    SCHEDULE
      5 – RESTRICTED ACTIONS

     

    Any
      and
      all of the following actions by Promoters, the Company and/or SMC Group
      Companies prior to the Completion Date shall be subject to prior consent of
      the
      Investor:

     

    
      	
              1.  

            	
              Charter
                Documents. Cause or permit any amendments to its Memorandum of
                Association or Articles of Association save and except as may be
                required
                to give effect to the transactions contemplated by this
                Agreement.

            

    

     

    
      	
              2.  

            	
              Dividends.
                Declare or pay any dividends on or make any other distributions (whether
                in cash, shares, securities or property) in respect of any of its
                share
                capital.

            

    

     

    
      	
              3.  

            	
              Share
                Capital. Issue or split, combine or reclassify any of its share
                capital or issue or authorize the issuance of any Derivative Securities,
                or repurchase or otherwise acquire, directly or indirectly, any shares
                or
                Derivative Securities.

            

    

     

    
      	
              4.  

            	
              Transfer.  Transfer
                of any shares or Securities in the Company by Promoter or Promoter
                Group
                (except amongst Promoter Group or Promoters spouse and lineal antecedent
                and descendent) or the Company in SMC Group Companies to any third
                party.

            

    

     

    
      	
              5.  

            	
              Issuance
                of Securities. Issue, deliver or sell or authorize or propose the
                issuance, delivery or sale of, or purchase or propose the purchase
                of, any
                shares of Company or Derivative Securities, or subscriptions, rights,
                warrants or options to acquire, or other agreements or commitments
                of any
                character obligating Company to issue any such shares or
                Securities.

            

    

     

    
      	
              6.  

            	
              Dispositions.
                Sell, lease, license or otherwise dispose of or encumber any of its
                properties or assets, except in the Ordinary Course of Business,
                consistent with past practice.

            

    

     

    
      	
              7.  

            	
              Payment
                of Obligations. Pay, discharge or satisfy any claims, liabilities or
                obligations (absolute, accrued, asserted or unasserted, contingent
                or
                otherwise) arising other than in the Ordinary Course of
                Business.

            

    

     

    
      	
              8.  

            	
              Capital
                Expenditures. Make any capital expenditures, capital additions or
                capital improvements in excess of rupee equivalent of INR 82 Million
                in
                the aggregate in each Financial
                Year.

            

    

     

    
      	
              9.  

            	
              Insurance.
                Materially reduce the amount of any insurance coverage provided by
                existing insurance policies other than in the Ordinary Course of
                Business.

            

    

     

    
      	
              10.  

            	
              Termination
                or Waiver. Terminate or waive any right or benefit of substantial
                value other than in the Ordinary Course of
                Business.

            

    

     

    
      	
              11.  

            	
              Employee
                Benefit Plans, New Hires, Pay Increases. Amend any company employee
                plan or adopt any plan that would constitute a company employee plan,
                pay
                any special bonus, special remuneration or special non-cash benefit,
                or
                increase the benefits, salaries or wage rates of its employees, save
                and
                except in the Ordinary Course of
                Business.

            

    

     

    
      	
              12.  

            	
              Severance
                Arrangements. Grant or pay any severance or termination pay or
                benefits (i) to any director or officer, or (ii) except for payments
                made
                pursuant to written agreements outstanding on the date hereof, to
                any
                other employee.

            

    

     

    
      	
              13.  

            	
              Lawsuits.
                Commence a lawsuit other than in such cases where the company in
                good
                faith determines that a failure to commence such suit would result
                in the
                material impairment of a valuable aspect of the company’s business,
                provided that it consults with the Investor prior to the filing of
                such a
                suit.

            

    

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    
      	
              14.  

            	
              Acquisitions.
                Acquire or agree to acquire by merging with, or by purchasing a
                substantial portion of the shares, Securities or assets of, or by
                any
                other manner, any business or any company, partnership, association
                or
                other business organization division thereof or otherwise acquire
                or agree
                to acquire any assets that are material individually or in the aggregate,
                to the Business other than in the Ordinary Course of
                Business.

            

    

     

    
      	
              15.  

            	
              Taxes.
                Other than in the Ordinary Course of Business, make or change any
                election
                in respect of taxes, adopt or change any accounting method in respect
                of
                taxes, file any tax return or any amendment to a tax return, settle
                any
                claim or assessment in respect of taxes, or consent to any extension
                or
                waiver of the limitation period applicable to any claim or assessment
                in
                respect of taxes.

            

    

     

    
      	
              16.  

            	
              Revaluation.
                Revalue any of its assets, including without limitation writing down
                the
                value of inventory or writing off notes or accounts receivable other
                than
                in the Ordinary Course of Business or as required by changes in Indian
                GAAP.

            

    

     

    
      	
              17.  

            	
              Listing:
                All decisions with respect to listing of the
                Company.

            

    

     

    
      	
              18.  

            	
              Liquidation:
                Voluntary liquidation or dissolution of the company or any bankruptcy
                action in relation to the company.

            

    

     

    
      	
              19.  

            	
              Other.
                Take or agree in writing or otherwise to take, any of the actions
                described in Clause 1 through 18
                above.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6 - CONDITION SUBSEQUENT

     

    
      	
              1)  

            	
              Key
                Persons Provisions: The Company shall maintain Directors’ and
                Officers’ insurance for members of its Board of Directors in amounts
                considered reasonable by the Company and consistent with market practice
                in India.

            

    

    

    
      	
              2)  

            	
              Key
                Man Insurance: The Company shall purchase Key Man Insurance policy of
                such amounts as may be decided by the Board, with benefits payable
                to the
                Company, covering the Key Employees and such of the Promoters as
                may be
                identified by the Company.

            

    

    

    
      	
              3)  

            	
              RBI
                Reporting. The Company shall also ensure that within 30 days from
                the Completion Date, the relevant forms of the Company are filed
                with the
                concerned regulatory authorities including the Registrar of Companies,
                Reserve Bank of India, etc. in accordance with the provisions of
                Applicable Law.

            

    

    

    
      	
              4)  

            	
              Condition
                Precedent. Any Conditions Precedent not fulfilled at the time of
                Completion and not entirely waived in
                writing.

            

    

    

    
      	
              5)  

            	
              Periodical
                Financial Statements. The Company shall and the Promoters shall ensure
                that the Investor is furnished with its quarterly financial statements
                prepared under Indian GAAP duly translated and audited (if required
                under
                Applicable Laws) as per the US GAAP within 42 days of closure of
                the
                quarter and annual financial statements prepared in accordance with
                US
                GAAP and audited by a Public Company Accounting Oversight Board top
                6
                accounting firm within 87 days of closure of the financial year,
                so that
                the Investor may file the same with the US Securities Exchange
                Commission.  The Company and the Promoters shall ensure that the
                Investor is informed of any and all material occurrences on an ongoing
                basis within 4 working days of such occurrence so that the Investor
                may
                file the same with the US Securities Exchange
                Commission.

            

    

    

    
      	
              6)  

            	
              Continued
                guarantee. Promoters shall continue to maintain the personal guarantee
                issued by them for the financial facilities obtained by the Company
                and
                SMC Group Companies from the
                lenders.

            

    

    

    
      	
              7)  

            	
              Employment
                Contracts. All employees, on or before Completion or within 60 days
                from Completion, shall have entered into a standard format employment
                agreement, incorporating provisions relating to the adoption of Chinese
                walls, handling of price sensitive information and non-compete and
                non-solicitation obligations.

            

    

    

    
      	
              8)  

            	
              Listing.
                The Company shall and the Promoters shall ensure that the Equity
                Shares of
                the Company are listed on the Bombay Stock Exchange Limited and/or
                National Stock Exchange Limited within four (4) years from the date
                of
                Completion.

            

    

    

    
      	
              9)  

            	
              Name
                License Agreement. The Promoters or the Company shall not permit the
                use of words “SMC” to any other entity engaged in the similar line of
                Business.

            

    

    

    
      	
              10)  

            	
              Any
                other items specifically agreed between the Parties and reasonably
                requested by the Investor.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    SCHEDULE
      7 - REPRESENTATIONS AND WARRANTIES

     

    PART
      1
      -  REPRESENTATION AND WARRANTY FROM THE COMPANY AND
      PROMOTERS

    

    REPRESENTATIONS
      AND WARRANTIES

    

    Prior
      to
      the execution and delivery of this Agreement, the Company and the Promoters,
      have together delivered to the Investor a disclosure schedule with numbered
      sections corresponding to the relevant sections in this Agreement (the
“Disclosure Schedule” as set out in Annexure
      3).

    

    Any
      exception or qualification set forth in the Disclosure Schedule with respect
      to
      a particular representation or warranty contained in this Agreement, shall
      be
      deemed to be an exception or qualification with respect to all other applicable
      representations and warranties contained in this Agreement, but only where
      the
      relevance of such disclosure to such other representations or warranties is
      reasonably apparent from the text of such disclosure.

    

    The
      Company and the Promoters (for themselves and on behalf of the SMC Group
      Companies) are hereinafter referred to as “Warrantors”.

    

    
      	
              1           
                 

            	
              The
                Promoters, jointly and severally, represent and warrant to the Investor
                as
                follows:

            

    

     

    
      	
              1.1  

            	
              Binding
                Agreement.

            

    

     

    
      	
              i)  

            	
              Each
                of the Promoters have the full legal right, power, authority and
                capacity
                to execute, deliver and fully perform such Promoter’s obligations under
                this Agreement and any documents contemplated hereby to which any
                of
                Promoters is a party according to their respective
                terms.

            

    

     

    
      	
              ii)  

            	
              This
                Agreement and any documents contemplated hereby to which any of Promoters
                is a party have been duly executed and delivered by such Promoter
                and
                constitute the legal, valid and binding agreement of such Promoter
                enforceable against such Promoter in accordance with its terms, except
                to
                the extent that: (a) such enforcement may be subject to bankruptcy,
                insolvency, reorganization, moratorium or other similar laws now
                or
                hereafter in effect relating to creditor’s rights generally, and (b) the
                remedy of specific performance or injunctive and other forms of equitable
                relief may be subject to equitable defenses and to the discretion
                of the
                court before which any proceeding therefore may be
                brought.

            

    

     

    
      	
              1.2  

            	
              Bankruptcy.
                No Bankruptcy Matter of any character affecting all or any of the
                Promoters are pending or threatened, and none of the Promoters have
                made
                any assignment for the benefit of creditors or taken any action in
                contemplation of, or which would constitute the basis for any Bankruptcy
                Matter.

            

    

     

    
      	
              1.3  

            	
              Non-Contravention.
                The execution, delivery and performance by all and any of the Promoters
                of
                this Agreement and the documents contemplated hereby (with or without
                the
                giving of notice, the lapse of time, or both) and the consummation
                by each
                of the Promoters of the transactions contemplated hereby or thereby
                do
                not: (a) other than for Clause 2.5 hereof require the consent of
                any third
                party; (b) conflict with, result in a breach of, or constitute a
                default
                under, any Applicable Law; (c) violate any agreement, indenture,
                instrument, note, mortgage, lease, license, franchise, permit or
                other
                authorization, right, restriction or obligation to which any of the
                Promoters is a party or by which any of the Promoters may be bound;
                (d)
                violate any order, injunction judgment or decree of any Government
                Authority by which any of the Promoters may be bound; (e) constitute
                an
                act of bankruptcy, preference, insolvency or fraudulent conveyance
                under
                any bankruptcy act or other Applicable Law for the protection of
                debtors
                or creditors; or (f) conflict with or result in any breach or violation
                of
                the terms, conditions or provisions of the Charter Documents (defined
                below). None of the Promoters is a party to, or bound by, any
                agreement or commitment that prohibits or restricts the execution
                and
                delivery by any of the Promoters of this Agreement or the consummation
                of
                the transactions contemplated
                hereby.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	
              1.4  

            	
              Litigation.
                There is no action, claim, suit, Proceedings or investigation pending
                or
                threatened by or against or affecting all or any of the Promoters
                which
                questions the validity of this Agreement or the right of any of the
                Promoters to enter into it, or to consummate the transactions contemplated
                hereby, or which could result in any change in the equity ownership
                of all
                or any of the Promoters in the Company. None of the Promoters is
                a party
                or subject to the provisions of any order, writ, injunction, judgment
                or
                decree of any Governmental Authority, and there is no investigation
                pending or threatened that could prohibit or restrict the execution
                and
                delivery by any of the Promoters of this Agreement or the consummation
                of
                the transactions contemplated
                hereby.

            

    

     

    
      	
              1.5  

            	
              No
                conflicting interest. Except as disclosed in Section 1.5 of the
                Disclosure Schedule, none of the Promoters own, beneficially or of
                record,
                directly or indirectly, any share capital or other ownership or
                proprietary interest in any partnership, association, trust joint
                venture,
                limited liability company, or other entity that is in direct or indirect
                competition with the Company or SMC Group
                Companies.

            

    

     

    
      	
              2             

            	
              The
                Warrantors, jointly and severally represent and warrant to the Investor
                as
                follows:

            

    

     

    
      	
              2.1  

            	
              Binding
                Agreement:

            

    

     

    
      	
              i)  

            	
              The
                Company and SMC Group Companies have all requisite corporate power
                and
                authority to execute and deliver this Agreement and the other agreements
                contemplated hereby and subject to receipt of proposed necessary
                regulatory approvals as specified in Schedule 9, to perform their
                obligations hereunder and thereunder and consummate the transactions
                contemplated hereby and thereby. There are no other regulatory approvals
                required for consummating the transaction contemplated under this
                Agreement other than the approvals as set out in Schedule
                9.

            

    

     

    
      	
              ii)  

            	
              The
                execution and delivery of this Agreement and the other agreements
                contemplated hereby, by the Company and SMC Group Companies, the
                performance by the Company and SMC Group Companies of their obligations
                hereunder and thereunder and the consummation of the transactions
                contemplated hereby or thereby have been duly authorized by the board
                of
                directors of the Company and SMC Group Companies, and no other action
                on
                the part of the Company and SMC Group Companies is necessary to authorize
                the execution and delivery of this Agreement or any other agreements
                contemplated hereby by the Company and SMC Group Companies or the
                performance by the Company and SMC Group Companies of their obligations
                hereunder and thereunder or the consummation by the Company and SMC
                Group
                Companies of the transactions contemplated hereby or thereby, except
                for
                the receipt of proposed regulatory approvals as specified in Schedule
                9
                and lenders consent (as referred to in Schedule
                2).

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
      	
              iii)  

            	
              This
                Agreement has been duly executed and delivered by the Company and
                SMC
                Group Companies, and this Agreement constitutes, and the other agreements
                contemplated hereby upon execution and delivery by the Company and
                SMC
                Group Companies will each constitute (in each case assuming due
                authorization, execution and delivery by the other parties thereto),
                a
                legally valid and binding obligation of the Company and SMC Group
                Companies, enforceable against the Company and SMC Group Companies
                in
                accordance with its terms, except as such enforceability may be limited
                by
                principles of public policy, and subject to: (a) such enforcement
                may be
                subject to bankruptcy, insolvency, reorganization, moratorium or
                other
                similar laws now or hereafter in effect relating to creditor’s rights
                generally, and (b) the remedy of specific performance or injunctive
                and
                other forms of equitable relief may be subject to equitable defenses
                and
                to the discretion of the court before which any proceeding therefore
                may
                be brought.

            

    

     

    
      	
              2.2  

            	
              Organization:

            

    

     

    
      	
              i)  

            	
              The
                Company and SMC Group Companies are companies incorporated, validly
                existing and in good standing under the Indian Companies Act, 1956,
                and
                each of them have all requisite corporate power and authority to
                own,
                operate or lease the properties and assets now owned, operated or
                leased
                by it, and to carry on its business in all material respects as currently
                conducted. The Company and SMC Group Companies are duly qualified
                to do
                business as an Indian corporation and in good standing under the
                laws of
                India..

            

    

     

    
      	
              ii)  

            	
              True
                and complete copies of the Memorandum and Articles of Association
                of the
                Company and SMC Group Companies, as amended and in effect as of the
                date
                of this Agreement, have been made available to the Investor (“Charter
                Documents”).

            

    

     

    
      	
              iii)  

            	
              The
                Company and SMC Group Companies are not in violation of any of the
                provisions of the Charter
                Documents.

            

    

     

    
      	
              iv)  

            	
              True
                and complete copies of the minutes of all meetings of the board of
                directors and the shareholders of the Company and SMC Group Companies
                have
                been made available by the Company and SMC Group Companies to the
                Investor.

            

    

     

    
      	
              2.3  

            	
              Bankruptcy.
                No Bankruptcy Matter of any character affecting the Company or SMC
                Group
                Companies is pending or threatened, and Company or SMC Group Companies
                have not made any assignment for the benefit of creditors or taken
                any
                action in contemplation of, or which would constitute the basis for
                any
                Bankruptcy Matter.

            

    

     

    
      	
              2.4  

            	
              Capitalization:

            

    

     

    
      	
              i)  

            	
              Section
                2.4 of the Disclosure Schedule, sets out the existing authorized,
                issued
                and paid-up share capital of the Company and SMC Group Companies.
                Except
                as set forth in Section 2.4, no other Securities of the Company and
                SMC
                Group Companies are issued or outstanding. All such issued and outstanding
                Securities shall have been duly authorized and validly issued, and
                were
                not issued in violation of any preemptive or similar rights created
                by
                statute or the Charter Documents.

            

    

     

     

     

     

    
      
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              ii)  

            	
              The
                Company and SMC Group Companies or any agreement to which the Warrantors
                are a party or by which they are bound, and have been issued in compliance
                with Applicable Law.

            

    

     

    
      	
              iii)  

            	
              The
                Company has complete and unrestricted power and the unqualified right
                to
                issue, transfer and deliver to the Investor, and upon consummation
                of the
                transactions contemplated by this Agreement, the Investor will acquire
                good and valid and marketable title to all of the Subscription Shares,
                free and clear of all Liens. Section 2.4 of the Disclosure Schedule
                sets
                out the indirect shareholding of the Investor in SMC Group Companies,
                upon
                Completion.

            

    

     

    
      	
              iv)  

            	
              As
                of the date of this Agreement, there are: (a) no outstanding options,
                warrants, calls, rights of conversion or other rights, agreements,
                arrangements or commitments of any kind or character, whether written
                or
                oral, relating to the Shares to which the Warrantors are a party,
                or by
                which they are bound, obligating the Warrantors to issue, deliver
                or sell,
                or cause to be issued, delivered or sold, or repurchase, redeem or
                otherwise acquire any Securities, (b) no outstanding or authorized
                share appreciation, phantom share, profit participation, or other
                similar
                rights with respect to the Company and SMC Group Companies, and (c)
                no
                voting agreements, member agreements, proxies or other agreements
                or
                understandings in effect to which the Warrantors are a party, or
                by which
                they are bound, with respect to the governance of the Company and
                SMC
                Group Companies or the voting or transfer of any
                Securities.

            

    

     

    
      	
              2.5  

            	
              Third
                Party Consents. Other than consents and regulatory approvals required
                for consummating the transaction as set out in Schedule 9, no consent,
                approval, authorization, order, filing, registration, declaration
                or
                qualification of or with any Government Authority or third Person
                is
                required to be obtained by the Warrantors in connection with the
                execution
                and delivery by the Warrantors of this Agreement or consummation
                of the
                transactions contemplated hereby. The Warrantors specifically represent
                and warrant that the proposed transaction does not require any consent
                from the lenders of the Company or SMC Group
                Companies.

            

    

     

    
      	
              2.6  

            	
              Financial
                Statements:

            

    

     

    
      	
              i)  

            	
              The
                audited consolidated financial statements of the Company and SMC
                Group
                Companies (including the balance sheet and the related statements
                of
                income and cash flows) as of and for each of the 12-month periods
                ended
                March 31, 2006, March 31, 2005 and March 31, 2004, and the un-audited
                and
                unconsolidated financial statements of the Company for the nine months
                period ended on December 31, 2006 (the “The Financial Statements”)
                are attached in Section 2.6 of the Disclosure
                Schedule.

            

    

     

    
      	
              ii)  

            	
              Except
                as set forth therein, the Financial Statements have been prepared
                in
                accordance with Indian GAAP applied on a consistent basis throughout
                the
                periods indicated therein.

            

    

     

    
      	
              iii)  

            	
              The
                Financial Statements present fairly, in all material respects, the
                consolidated financial position, results of operations and cash flows
                of
                the Company and SMC Group Companies as of the respective dates and
                during
                the respective periods indicated
                therein.

            

    

     

    
      	
              iv)  

            	
              All
                accounts receivable, including without limitation, all trade amounts
                receivable and other obligations from clients and customers, whether
                or
                not evidenced by a note (collectively, “Accounts Receivable”): (a)
                are bona fide receivables incurred in the Ordinary Course of Business,
                and
                (b) are not currently the subject of any counterclaim, or a claim
                for a
                chargeback, deduction, credit, set off or other offset, other than
                in the
                Ordinary Course of Business and as reflected by the reserve for bad
                debts
                recorded on the Financial Statements. No Person has any Encumbrance
                on any
                Accounts Receivable or any part
                thereof.

            

    

     

     

     

     

    
      
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        39

        
          

        

      

      
        
        

      

    

    
      	
              v)  

            	
              There
                are no agreement for deduction, free services, discount or other
                deferred
                price or quantity adjustment made by the Company or SMC Group Companies
                exceeding in aggregate of INR
                4,000,000.

            

    

     

    
      	
              vi)  

            	
              Undisclosed
                Liabilities: The Company or SMC Group Companies do not have any
                Liabilities of a nature that is required to be reflected on a balance
                sheet or in the financial notes thereto in accordance with Indian
                GAAP,
                except as: (i) reflected in, reserved against or disclosed in the
                Financial Statements; (ii) disclosed in Section 2.6 of the
                Disclosure Schedule, (iii) incurred in the Ordinary Course of
                Business since March 31, 2006.

            

    

     

    
      	
              2.7  

            	
              Certain
                Changes or Events: Except as expressly contemplated by this Agreement
                or as disclosed in Section 2.7 of the Disclosure Schedule, since the
                Audited Financial Statements Date and through the date of this Agreement,
                the Company and SMC Group Companies have conducted its business
                (including, without limitation, its cash management customs and practices
                (e.g., collection of receivables, payment of payables, and maintenance
                of
                credit practices)) only in the Ordinary Course of Business. Since
                such
                date through the date of this Agreement, there has not been, occurred
                or
                arisen:

            

    

     

    
      	
              i)  

            	
              any
                material damage to, or destruction or loss of, any of the material
                assets
                or properties of the Company and/or SMC Group Companies other than
                related
                to information technology;

            

    

     

    
      	
              ii)  

            	
              any
                declaration, setting aside or payment of any dividend, or other
                distribution or capital return in respect of any Shares or Securities
                or
                other equity security, or any redemption, repurchase or other acquisition
                by the Company and/or SMC Group
                Companies;

            

    

     

    
      	
              iii)  

            	
              any
                sale, pledge, assignment, transfer, lease, guarantee, encumbrance,
                license
                or other disposition, or agreement to sell, pledge, assign, transfer,
                lease, guarantee, encumber, license or otherwise dispose of, any
                property,
                asset or interest therein of the Company and/or the SMC Group Companies
                otherwise than in the Ordinary Course of
                Business;

            

    

     

    
      	
              iv)  

            	
              any
                acquisition (by merger, consolidation or other combination, or acquisition
                of shares or assets or otherwise) by the Company and/or SMC Group
                Companies other than over INR 41 million for each such
                acquisition;

            

    

     

    
      	
              v)  

            	
              any
                change in any method of accounting or accounting practice used by
                the
                Company and/or SMC Group Companies, other than such changes as are
                required by Indian GAAP;

            

    

     

    
      	
              vi)  

            	
              any
                increase in or establishment of any bonus, insurance, severance,
                deferred
                compensation, pension, retirement, profit sharing, share option,
                share
                purchase or other employee benefit plan (other than any such increases
                required under the applicable terms of any such plan or Applicable
                Law),
                or any other increase in the compensation payable or to become payable
                to
                any officers of the Company and/or SMC Group Companies, other than
                in the
                Ordinary Course of Business;

            

    

     

     

     

     

    
      
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        40

        
          

        

      

      
        
        

      

    

    
      	
              vii)  

            	
              any
                issuance by the Company and/or SMC Group Companies of any Securities
                convertible, exchangeable or exercisable into any equity securities
                or
                warrants, options or other rights to acquire equity
                shares;

            

    

     

    
      	
              viii)  

            	
              any
                termination, cancellation or any modification of a material term
                of any
                Listed Contracts, other than this
                Agreement.

            

    

     

    
      	
              2.8  

            	
              Intellectual
                Property.

            

    

     

    
      	
              i)  

            	
              Section 2.8
                of the Disclosure Schedule contains a true, correct and complete
                list of
                all (i) Indian and foreign patent and patents applications, the
                number, issue date, title and priority information for each country
                in
                which such patent has been issued, or the application number, date
                of
                filing, title and priority information for each country in which
                a patent
                application is pending; (ii) registered and unregistered trademarks,
                trade names or service marks, logos, designs and slogans, the application
                serial number or registration number thereof, if applicable, the
                class of
                goods or services or the description of the goods or services covered
                thereby, the jurisdiction in which such trade name or trademark is
                registered or filed, and the expiration date for each jurisdiction
                in
                which such trademark or trade name has been registered or filed;
                (iii) registered copyrights, the number and date of registration
                thereof for each country in which a copyright has been registered
                and
                (iv) domain names and applications for registration of domain names,
                in each case included in the Proprietary
                Rights.

            

    

     

    
      	
              ii)  

            	
              Except
                as disclosed in Section 2.8 of the Disclosure Schedule, (i) the
                operation of the business, including the use of the Owned Proprietary
                Rights, does not infringe or misappropriate or otherwise materially
                violate the Proprietary Rights of any third party, and no claim is
                pending
                or, to the Knowledge of the Warrantors, threatened against the Company
                or
                any SMC  Group Companies alleging any of the foregoing,
                (ii) the Company and SMC Group Companies owns, or has necessary
                licenses all of the Proprietary Rights necessary for the conduct
                of the
                business, and (iii) except for the Owned Proprietary Rights and the
                Licensed Proprietary Rights, no material right, license, lease, consent,
                or other agreement is required with respect to any Proprietary Right
                for
                the conduct of the Business.

            

    

     

    
      	
              iii)  

            	
              Subject
                only to the terms of the licenses listed in Section 2.8 of the Disclosure
                Schedule or licenses that are immaterial to the Ordinary Course of
                Business of the Company and/or any SMC Group Companies, or except
                as
                disclosed in Section 2.8 of the Disclosure Schedule, the Company or
                an SMC Group Companies is (i) the sole owner of the entire and
                unencumbered right, title and interest in and to each item of the
                Owned
                Proprietary Rights, and (ii) entitled to use the Owned Proprietary
                Rights and Licensed Proprietary Rights in the ordinary course of
                its
                business to the extent such Proprietary Rights are used in the operation
                of the business.

            

    

     

    
      	
              iv)  

            	
              Except
                as disclosed in Section 2.8 of the Disclosure Schedule, the Owned
                Proprietary Rights and Licensed Proprietary Rights include all of
                the
                material Proprietary Rights used in the business, and there are no
                other
                items of Proprietary Rights that are material to the business of
                the
                Company and SMC Group Companies.

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    
      	
              v)  

            	
              The
                Company and SMC Group Companies have made available to Investor for
                inspection during the due diligence by the Investor all material
                correspondence and all written opinions in its possession relating
                to
                potential infringement or misappropriation (a) by the Company or
                any SMC
                Group Companies of any Proprietary Rights of any third party, or
                (b) by
                any third party of any of the Owned Proprietary Rights or Licensed
                Proprietary Rights.

            

    

     

    
      	
              vi)  

            	
              Except
                as disclosed in Section 2.8 of the Disclosure Schedule, to the
                Knowledge of the Warrantors, (i) no third party is engaging in any
                activity that infringes or misappropriates the Owned Proprietary
                Rights or
                Licensed Proprietary Rights and (ii) the Company and the SMC Group
                Companies have not granted any material license or other right to
                any
                third party with respect to the Owned Proprietary Rights or Licensed
                Proprietary Rights.

            

    

     

    
      	
              vii)  

            	
              The
                Company and the SMC Group Companies have a license to use all software
                development tools, library functions, compilers and other third-party
                software that are used in the operation of the business and are material
                to the business, taken as a whole.  To the Knowledge of
                Warrantors, all material software used in the business is free of
                all
                viruses, worms and Trojan horses, and does not contain any critical
                bugs,
                errors, or problems, in each case that reasonably would be expected
                to
                have a material adverse impact on the business, taken as a
                whole.

            

    

     

    
      	
              viii)  

            	
              The
                Company and each of the SMC Group Companies have secured valid written
                assignments or agreements from all current and former consultants
                and
                employees who contributed to the creation or development of the material
                Owned Proprietary Rights used or held for use by the Company or the
                SMC
                Group Companies, in each case assigning such Person’s ownership interest
                therein.  All employees of, consultants to or vendors of the
                Company or any SMC Group Companies with access to confidential information
                of the Company or any SMC Group Companies are parties to written
                agreements under which, among other things, each such employee, consultant
                or vendor is obligated to maintain the confidentiality of confidential
                information of the Company or any SMC Group Companies.  To the
                Knowledge of Warrantors, none of the employees, consultants or vendors
                of
                the Company or any SMC Group Companies is in violation of such
                agreements.

            

    

     

    
      	
              3             

            	
              Contracts.

            

    

     

    
      	
              3.1  

            	
              As
                of the date of this Agreement, Section 3.1 of the Disclosure Schedule
                contains a true, correct and complete list of all contracts in excess
                of
                INR 41 Million referred to in clauses (i) through (xv), inclusive, of
                this Section 3.1 to which the Company or any SMC Group Companies is a
                party (each, a “Listed Contract” and, collectively, the “Listed
                Contracts”).  True, correct and complete copies of each
                Listed Contract have been made available to the
                Investor:

            

    

     

    
      	
              i)  

            	
              Contract
                notes (other than in the Ordinary Course of Business), debentures,
                other
                evidences of indebtedness, guarantees, loans, credit or financing
                agreements or instruments, or other Listed Contracts for money borrowed,
                including any agreements or commitments for future loans, credit
                or
                financing;

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    
      	
              ii)  

            	
              Contracts
                with any labor union or contracts for the employment of any Person
                on a
                full-time, part-time or consulting basis or any consulting, termination
                or
                severance agreements to the extent there remain payment obligations
                to be
                performed by the Company or any SMC Group
                Companies;

            

    

     

    
      	
              iii)  

            	
              leases
                of real property from or to a
                Person;

            

    

     

    
      	
              iv)  

            	
              leases,
                rental or occupancy agreements, installment and conditional sale
                agreements, and other Contracts affecting the ownership of, leasing
                of,
                title to, use of, or any

            

    

     

    
      	
              v)  

            	
              leasehold
                or other interest in, any personal property or asset involving individual
                annual aggregate payments in excess of INR 20.5 million and which
                are not
                terminable by the Company or an SMC Group Companies  without
                penalty or further payment or without more than 90 days’
                notice;

            

    

     

    
      	
              vi)  

            	
              joint
                venture, partnership or limited liability company agreements involving
                a
                share of profits, losses, costs or liabilities (excluding agreements
                with
                third parties involving the co-branding and hosting of websites under
                a
                revenue sharing arrangement);

            

    

     

    
      	
              vii)  

            	
              Contracts
                explicitly requiring fixed expenditures after the date of this Agreement
                in an amount in excess of INR 20.5 million which are not terminable
                by the
                Company or an SMC Group Companies without penalty at its
                discretion;

            

    

     

    
      	
              viii)  

            	
              Contracts
                with any Person that generated consolidated net revenues for the
                Company
                and SMC Group Companies during the twelve months ended March 31,
                2007 in
                excess of INR 20.5 million other than brokerage
                contracts;

            

    

     

    
      	
              ix)  

            	
              licensing
                agreements with respect to proprietary rights that obligate the Company
                or
                any SMC Group Companies to make royalty payments, license fee payments
                or
                other similar payments after the date of this
                Agreement;

            

    

     

    
      	
              x)  

            	
              Listed
                Contracts between the Company or an SMC Group Companies, on the one
                hand,
                and any director, officer, equity holder or Affiliate of the Company
                or
                any SMC Group Companies, on the other hand, or any former director,
                officer, equity holder or Affiliate to the extent there remain payment
                or
                issuance of equity obligations to be performed by the Company or
                any SMC
                Group Companies pursuant to such Listed
                Contracts;

            

    

     

    
      	
              xi)  

            	
              Listed
                Contracts containing covenants limiting the freedom of the Company
                or any
                SMC Group Companies in any material respect to compete with any Person
                in
                any line of business or in any area or
                territory;

            

    

     

    
      	
              xii)  

            	
              all
                Listed Contracts that result in any Person holding a power of attorney
                from the Company or any SMC Group Companies that relates to the Company,
                any SMC Group Companies or their respective businesses (other than
                powers
                of attorney granted in the ordinary course of business to (i) patent
                counsel engaged in the prosecution of patents, trademark counsel
                and their
                agents engaged in applying for trademarks and accountants engaged
                in
                filing tax returns, and (ii) employees of the Company or any SMC
                Group Companies to act on behalf of the Company or such SMC Group
                Companies with respect to Taxes);
                and

            

    

     

     

     

     

    
      
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          Private & Confidential

        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    
      	
              xiii)  

            	
              all
                other Listed Contracts, whether or not made in the ordinary course
                of
                business, the termination of which would reasonably be expected to
                have a
                Material Adverse Effect.

            

    

     

    
      	
              xiv)  

            	
              Except
                for such exceptions as would not, individually or in the aggregate,
                reasonably be expected to have a Material Adverse Effect, (i) each
                Listed Contract is in full force and effect and represents a legally
                valid
                and binding obligation of the Company or an SMC Group Companies which
                is a
                party thereto, (ii)  the Company and each SMC Group Companies has
                performed, in all material respects, all obligations required to
                be
                performed by it under each of the Listed Contracts to which it is
                a party
                and, to the Knowledge of the Warrantors, each other party to such
                Listed
                Contracts has performed, in all material respects, all obligations
                required to be performed by it under such Listed Contracts, and
                (iii) neither the Company nor any SMC Group Companies is in material
                breach or violation of, or material default under, any of the Listed
                Contracts to which it is a party, nor has the Company or any SMC
                Group
                Companies received any written notice that it has materially breached,
                violated or defaulted under any of the Listed Contracts to which
                it is a
                party except for income from
                brokerage.

            

    

     

    
      	
              xv)  

            	
              Except
                as set forth on Section 3.1 of the Disclosure Schedule, as of the
                date of this Agreement, neither the Company nor SMC Group Companies
                nor
                the Warrantors have received any notice, nor has any Knowledge, that
                any
                Person that generated consolidated net revenues for the Company or
                SMC
                Group Companies during the twelve months ended Match 31, 2006 in
                excess of
                INR 20.5 million intends to terminate, materially reduce (i.e., reduction
                by more than 5% from actual consolidated net revenues for such twelve
                month period) or otherwise materially alter its business or relationship
                with the Company or any SMC Group Companies and no such Person has
                terminated, materially reduced or otherwise materially altered its
                business or relationship with the Company or any SMC Group Companies
                in
                the last twelve (12) months.

            

    

     

    
      	
              3.2  

            	
              Taxes:

            

    

     

    
      	
              i)  

            	
              The
                Company and the SMC Group Companies have timely filed and if there
                has
                been a delay, with late fee payment) with the appropriate taxing
                authorities each Tax Return required to be filed prior to the date
                that
                such Tax Return became delinquent.

            

    

     

    
      	
              ii)  

            	
              All
                such Tax Returns filed are complete and accurate in all material
                respects,
                and all Taxes shown to be due and payable on such Tax Returns have
                been
                paid, except for those Taxes which are being challenged in good faith
                and
                for which adequate reserves have been
                made.

            

    

     

    
      	
              iii)  

            	
              All
                unpaid Taxes payable by the Company and SMC Group Companies for periods
                (or portions thereof) ending on or before March 31, 2007, whether
                or not
                disputed, are adequately reserved in accordance with Indian GAAP
                on the
                Financial Statements.

            

    

     

    
      	
              iv)  

            	
              Neither
                the Company nor SMC Group Companies are the beneficiaries of any
                extension
                of time within which to file any Tax
                Return.

            

    

     

    
      	
              v)  

            	
              There
                are no material Encumbrances for Taxes on any of the assets of the
                Company
                and SMC Group Companies.

            

    

     

     

     

     

     

    
      
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          Private & Confidential

        
        

      

      
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              3.3  

            	
              Except
                as set forth in Section 3.3 of the Disclosure
                Schedule:

            

    

     

    
      	
              i)  

            	
              no
                deficiency or proposed adjustment which has not been settled or otherwise
                resolved for any amount of Tax has been proposed, asserted or assessed
                by
                any taxing authority against the Company and/or SMC Group
                Companies;

            

    

     

    
      	
              ii)  

            	
              there
                is no Action or audit now in progress, pending or, to the Knowledge
                of the
                Company and SMC Group Companies and/or the Promoters, threatened
                against
                or with respect to the Company and/or SMC Group Companies with respect
                to
                any Tax;

            

    

     

    
      	
              iii)  

            	
              neither
                the Company nor the SMC Group Companies is a party to or bound by
                any Tax
                allocation or Tax sharing agreement or has any current or potential
                contractual obligation to indemnify any other Person with respect
                to
                Taxes;

            

    

     

    
      	
              iv)  

            	
              no
                claim has ever been made by a taxing authority in a jurisdiction
                where the
                Company and SMC Group Companies does not pay Tax or file Tax Returns
                that
                the Company and SMC Group Companies are or may be subject to Taxes
                assessed by such jurisdiction; and

            

    

     

    
      	
              v)  

            	
              The
                Company and SMC Group Companies have withheld and paid all Taxes
                required
                to have been withheld and paid in connection with amounts paid or
                owing to
                any employee, creditor, independent contractor or other third
                party.

            

    

     

    
      	
              3.4  

            	
              Section 3.4
                of the Disclosure Schedule contains a list of states, territories
                and
                jurisdictions (whether foreign or domestic) in which the Company
                and SMC
                Group Companies are required to file Tax Returns relating to its
                operations.

            

    

     

    
      	
              3.5  

            	
              Litigation
                and Governmental Orders: Except as set forth in Section 3.5 of the
                Disclosure Schedule, (a) there are no material Actions pending or, to
                the Knowledge of the Warrantors, threatened against the Warrantors,
                any of
                the assets or properties of the Warrantors, or any of the, directors
                and/or officers of Warrantors, and (b) none of the Warrantor or their
                respective assets or properties are subject to any material Governmental
                Authority relating specifically to Warrantor or any of their respective
                assets or properties.

            

    

     

    
      	
              3.6  

            	
              Compliance
                with Laws: 

            

    

     

    
      	
              i)  

            	
              The
                business of the Company and SMC Group Companies are being conducted
                in
                compliance with all Applicable
                Laws.

            

    

     

    
      	
              ii)  

            	
              The
                Company and SMC Group Companies are in compliance with the terms
                and
                requirements of all Licenses. The Company and SMC Group Companies
                have not
                received any written notice or other written communication from any
                Governmental Authority regarding: (a) any revocation, withdrawal,
                suspension, termination or modification of, or the imposition of
                any
                conditions with respect to any Licenses, (b) any violation of any
                Applicable Law by Company or SMC Group Companies, or (c) any other
                limitations on the conduct of business by
                Warrantors.

            

    

     

    
      	
              iii)  

            	
              The
                Company and SMC Group Companies are not in violation of any term
                of
                provision of: (a) its Charter Documents, or (b) any Applicable Law
                or
                regulatory approval applicable to, or which is binding upon, or affects
                it
                or any of its assets or revenues or the operation of their business.
                Any
                non-compliances have been disclosed in Section 3.6 of the Disclosure
                Schedule and there are no outstanding penalties payable to any
                Governmental Authority except as set out in Section 3.6 of the Disclosure
                Schedule.

            

    

     

     

     

     

    
      
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              iv)  

            	
              The
                Company has completed necessary filings with the authorized dealer
                in
                connection with the incorporation of SMC Comex International DMCC
                in Dubai
                including filing of Form ODA in accordance with the FEMA (Transfer
                and
                Issue of any Foreign Security)
                Regulations.

            

    

     

    
      	
              v)  

            	
              There
                has not been any breach with respect to compliance of the requirements
                of
                the listing agreement by the
                Company.

            

    

     

    
      	
              vi)  

            	
              All
                contract notes (issued to the clients) used by the Company or SMC
                Group
                Companies are in compliance with the requirements of Applicable
                Law.

            

    

     

    
      	
              3.7  

            	
              Licenses:

            

    

     

    
      	
              i)  

            	
              Set
                forth in Section 3.7 of the Disclosure Schedule is a list of all
                Licenses held by the Company and SMC Group Companies which are required
                for the Business.

            

    

     

    
      	
              ii)  

            	
              The
                Company and SMC Group Companies have all Licenses required to permit
                the
                Company and SMC Group Companies to conduct their respective parts
                of the
                business.

            

    

     

    
      	
              iii)  

            	
              All
                of the Licenses held by or issued to the Company and SMC Group Companies
                are in full force and effect, and the Company and SMC Group Companies
                is a
                party thereto is and has been in full compliance with each such Licenses
                held by or issued to it and all applicable laws, rules, regulations,
                bye-laws, and circulars in this regard, including all reporting and
                filing
                requirements.

            

    

     

    
      	
              3.8  

            	
              Immovable
                Property. Section 3.8 of the Disclosure Schedule lists all real
                property owned by the Company and SMC Group Companies (“Owned Real
                Property”).  Section 3.8 of the Disclosure Schedule
                also lists all real property leased from or to a third party by the
                Company or any SMC Group Companies (“Leased Real Property”). Except
                as set forth on Section 3.8 of the Disclosure Schedule, the Company
                or one of the SMC Group Companies has a valid and subsisting title
                to all
                Owned Real Property and/or has a valid and subsisting leasehold estate
                in,
                and enjoys peaceful and undisturbed possession of, all Leased Real
                Property, subject only to any (i) Permitted Encumbrance, and
                (ii) except where the failure to have such interests or possession
                would not, individually or in the aggregate, reasonably be expected
                to
                materially impair the Company or the SMC Group Companies use of such
                parcel of Owned or Leased Real Property for the uses for which it
                is
                currently intended.

            

    

     

    
      	
              3.9  

            	
              Employee
                Benefit Matters:

            

    

     

    
      	
              i)  

            	
              To
                the Knowledge of the Warrantors, there are no claimed and/or outstanding
                dues, including salary, provident fund, or gratuity, of any employees,
                agents, advisors, and/or consultants of the Company and SMC Group
                Companies.

            

    

     

     

     

     

    
      
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              ii)  

            	
              The
                Company and SMC Group Companies have been in full and complete compliance
                of all labour and industrial laws that are applicable to the Company
                and
                SMC Group Companies as per Applicable Laws.

            

    

     

    
      	
              3.10  

            	
              Labor
                Matters: The Warrantors are not party to any labour agreement with
                respect to its employees with any labour organization, group or
                association, nor, to the Knowledge of the Warrantors, the Company
                and SMC
                Group Companies there been any attempts to organize the employees
                of
                within the one (1) year period prior to the date of this Agreement.
                There
                is no labor strike, labor disturbance or work stoppage pending against
                the
                Company and SMC Group Companies.  There are no labour disputes,
                administrative proceedings or court complaints pending or threathened,
                to
                the Knowledge of Warrantors, before any Governmental Authority or
                any
                court or agency concerning alleged employment discrimination or any
                other
                matters relating to the employment of labor. No officer or key employee
                of
                the Company and SMC Group Companies has given oral or written notice
                of
                termination of his or her relationship with the Company and/or SMC
                Group
                Companies. Employees of the Company and each of the SMC Group Companies
                are required to adhere to the insider trading policy applicable to
                their
                respective employer company and that there have been no breaches
                of the
                same and appropriate indemnities in this
                regard.

            

    

     

    
      	
              3.11  

            	
              Environmental
                Matters: Company is into service industry and Environment Laws are not
                applicable to the Company and any of the SMC Group Companies and
                accordingly: (i) to the Knowledge of Warrantors, no hazardous
                material is present at any Owned or Leased Real Property in violation
                of
                any Environmental Law; (ii) neither the Company nor any of the SMC
                Group Companies has engaged in any hazardous materials activity in
                violation of any Environmental Law and (iii) no action is pending or,
                to the Knowledge of the Company or SMC Group Companies, threatened
                against
                the Company or any SMC  Group Companies concerning any of the
                hazardous materials activities of the Company and the SMC  Group
                Companies, or hazardous materials activity on any Owned or Leased
                Real
                Property.

            

    

     

    
      	
              3.12  

            	
              Insurance:

            

    

     

    
      	
              i)  

            	
              All
                requisite insurance cover, including  indemnity, fire, crimes
                and liability, errors and omissions, workers’ compensation, vehicular, and
                other insurance including those prescribed by the exchanges and/or
                regulatory authorities have been taken or held as of date by the
                Company
                and SMC Group Companies and the same is valid and in full force and
                effect.

            

    

     

    
      	
              ii)  

            	
              The
                Company and SMC Group Companies are not in default with respect to
                any
                material provision contained in any such insurance policies, nor
                has the
                Company and SMC Group Companies failed to give any material notice
                or
                present any material claim under any such insurance policies in due
                and
                timely fashion.

            

    

     

    
      	
              iii)  

            	
              The
                Company and SMC Group Companies have not received any written notice
                of
                cancellation or non renewal of any such insurance
                policies.

            

    

     

    
      	
              3.13  

            	
              Websites:

            

    

     

    
      	
              i)  

            	
              Section 3.13
                of the Disclosure Schedule sets forth a true, accurate and complete
                list
                of all domain names for websites that are owned or used by the Company
                and
                SMC Group Companies (the “Websites”). Except as disclosed in
                Section 3.13 of the Disclosure Schedule with respect to each Website,
                the Company and SMC Group Companies: (i) possesses all legal rights
                to the exclusive use of the domain names with respect thereto;
                (ii) to the Knowledge of the Warrantors and based on current traffic
                forecasts for its Websites, has adequate computer and personnel resources
                to help ensure that no service outages will occur due to insufficient
                data-storage, memory, server or other related reasons which would
                reasonably be expected to have a Materially Adverse Effect on the
                operation of the business; and (iii) has taken commercially
                reasonable steps to protect the confidentiality, integrity and security
                of
                their software, databases, systems, networks and Websites and all
                information stored or contained therein or transmitted thereby from
                unauthorized or improper access, modification, transmittal or use.
                Further, all domain name used by the Company or the SMC Group Companies
                and registered in individual name of Ramanand Garg has been transferred
                to
                and now owned by the Company.

            

    

     

     

     

     

    
      
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              ii)  

            	
              The
                Company and SMC Group Companies do not distributes Spyware or Adware
                in
                connection with the Business. “Spyware” means any software that
                covertly gathers information regarding user online activity through
                the
                user’s Internet connection (i.e., without notice that such information
                may
                be gathered), whether or not such software is bundled as a hidden
                component of a toolbar or like application, other than information:
                (i) reasonably gathered in connection with services or information
                provided by the Company and SMC Group Companies to such users, including
                without limitation through or via “cookies”, or (ii) that is not
                associated with Personally Identifiable
                Information.  “Personally Identifiable Information” means
                data that identifies a particular person, by name, address, telephone
                number, electronic mail address, social security number, permanent
                account
                number, unique client code, bank account number or credit card number.
                “Adware” means any software that causes advertising to pop-up as a
                new window (over or under) on the user’s computer based on the user’s
                online activity (other than advertisements that the Company and SMC
                Group
                Companies serves to visitors to their respective Websites while those
                visitors are visiting or exiting such Websites) or which is used
                to
                distribute Spyware.

            

    

     

    
      	
              iii)  

            	
              The
                Company and SMC Group Companies and the Promoters have not: (i) violated
                in any material respect the rights of any Person with respect to
                Personally Identifiable Information provided under any applicable
                Law
                including, without limitation, rights respecting (x) privacy generally,
                and (y) the obtaining, storing, using, sharing or transmitting of
                Personally Identifiable Information of any type, whether via electronic
                means or otherwise; or (ii) failed in any material respect to comply
                with
                the published privacy policies as applicable from time to
                time.

            

    

     

    
      	
              3.14  

            	
              Internal
                Controls. The Company and SMC Group Companies maintains a system of
                internal accounting controls that is sufficient to provide reasonable
                assurance that (i) transactions are executed in accordance with the
                management’s general or specific authorizations: (ii) transactions are
                recorded as necessary to permit preparation of financial statements
                in
                conformity with generally accepted accounting principles and to maintain
                asset accountability; (iii) access to assets is permitted only in
                accordance with the management’s general or specific authorization; and
                (iv) except as disclosed in Section 3.14 of the Disclosure Schedule,
                the
                recorded accountability for assets is compared with the existing
                assets at
                reasonable intervals and appropriate action is taken with respect
                to any
                differences.

            

    

     

     

     

     

    
      
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              3.15  

            	
              Investor
                Proxy Statement: None of the information to be supplied by the
                Warrantors for inclusion in the Investor Proxy Statement at the time
                of
                the mailing of the Investor Proxy Statement and each amendment or
                supplement thereto, and at the time of the Investor Special Meeting,
                will
                contain any untrue statement of a material fact or will omit to state
                any
                material fact required to be stated therein or necessary in order
                to make
                the statements therein, in light of the circumstances under which
                they are
                made, not misleading.

            

    

     

    
      	
              3.16  

            	
              Brokers:
                Except for Beejay Investments and Financial Consultants Private Limited
                and Singhi Advisors Limited (the “Financial Advisors”), who are
                entitled to certain investment banking and advisory fees to be mutually
                agreed in connection with the transactions contemplated by this Agreement,
                no broker, finder, investment banker or other person is entitled
                to any
                brokerage fee, finders’ fee or other commission in connection with the
                transactions contemplated by this Agreement. Prior to the date of
                this
                Agreement, the Warrantors have delivered to the Investor a true and
                complete copy of all agreements between the Warrantors and Financial
                Advisors pursuant to which the Financial Advisors would be entitled
                to any
                payment.

            

    

     

    
      	
              3.17  

            	
              Competition
                and Trade Relations:

            

    

     

    
      	
              i)  

            	
              None
                of the Company and SMC Group Companies have entered into any restrictive
                practices and/or arrangements.

            

    

     

    
      	
              ii)  

            	
              None
                of the Company and SMC Group Companies have received or are exchanging
                any
                communications with or from, or any notifications (including pending
                notifications) to, any governmental or regulatory authority under
                any
                anti-trust regulatory or similar
                legislation.

            

    

     

    
      	
              iii)  

            	
              No
                judgment, ruling, finding, order or any other decision, preliminary
                or
                final, of any anti-trust regulatory authority or of any court binding
                on
                the Company and SMC Group Companies has been
                passed.

            

    

     

    
      	
              iv)  

            	
              There
                are no current or pending investigations by, or proceedings before,
                any
                antitrust or relevant regulatory authority or any court, including
                any
                pending threat by an anti-trust or relevant regulatory authority
                to open
                any such investigations or proceedings in respect of the Company
                and SMC
                Group Companies.

            

    

     

    
      	
              3.18  

            	
              Related
                Party Transaction. All related party transactions between the
                Warrantors and their relatives or group entities have been disclosed
                in
                Section 3.18 of the Disclosure Schedule other than in the Ordinary
                Course
                of Business. All transactions with the related parties have been
                at arms
                length except for the transactions with employees and relatives and
                family
                members and their companies are not disclosed separately which is
                an
                industry practice.

            

    

     

    
      	
              3.19  

            	
              Representations
                Complete. None of the representations or warranties made by the
                Warrantors herein or in any schedule or exhibit hereto, including
                the
                Disclosure Schedule, or certificate furnished pursuant to this Agreement
                or any written statement furnished to the Investor pursuant hereto
                or in
                connection with the transactions contemplated hereby, contain, or
                will
                contain at the Closing Date any untrue statement of a material fact,
                or
                omits or will omit at the Closing Date to state any material fact
                necessary in order to make the statements contained herein or therein,
                in
                the light of the circumstances under which made, not
                misleading.

            

    

     

     

     

     

    
      
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    PART
      2 -REPRESENTATIONS AND WARRANTIES OF INVESTOR

    

    Prior
      to
      the execution and delivery of this Agreement by the Investor, the Investor
      has
      delivered to the Company and Promoters a disclosure schedule with numbered
      sections corresponding to the relevant sections in this Agreement (the
“Investor Disclosure Schedule” attached as Annexure “4”).  Any
      exception or qualification set forth in the Investor Disclosure Schedule with
      respect to a particular representation or warranty contained in this Agreement
      shall be deemed to be an exception or qualification with respect to all other
      applicable representations and warranties contained in this Agreement, but
      only
      where the relevance of such disclosure to such other representations or
      warranties is reasonably apparent from the text of such
      disclosure.  Nothing in the Investor Disclosure Schedule is
      intended to broaden the scope of any representation, warranty or covenant of
      the
      Investor contained in this Agreement.  Subject to the exceptions and
      qualifications set forth in the Investor Disclosure Schedule, the Investor
      represents and warrants to the Company and Promoters as follows:

    

    
      	
              1             

            	
              Authority:  The
                Investor has all requisite corporate power and authority to execute
                and
                deliver this Agreement and the other agreements contemplated hereby
                and to
                perform its obligations hereunder and thereunder and consummate the
                transactions contemplated hereby and thereby.  The execution and
                delivery of this Agreement and the other agreements contemplated
                hereby by
                the Investor, the performance by the Investor of its obligations
                hereunder
                and thereunder and the consummation of the transactions contemplated
                hereby or thereby have been duly authorized by the directors of the
                Investor, and, except for the approval of this Agreement and the
                other
                agreements contemplated hereby and the transactions contemplated
                hereby
                and thereby by the holders of a majority of the Investor’s outstanding and
                publicly traded shares of common stock present and voting at a special
                meeting of the Investor’s stockholders to be convened for that purpose
                (the “Investor Stockholders’ Approval”), no other action on the
                part of Investor is necessary to authorize the execution and delivery
                of
                this Agreement or any other agreements contemplated hereby by the
                Investor
                or the performance by the Investor of its obligations hereunder and
                thereunder or the consummation by the Investor of the transactions
                contemplated hereby or thereby.  This Agreement has been duly
                executed and delivered by the Investor, and this Agreement constitutes,
                and the other agreements contemplated hereby upon execution and delivery
                by the Investor will each constitute (in each case assuming due
                authorization, execution and delivery by the other parties thereto),
                a
                legally valid and binding obligation of the Investor, enforceable
                against
                the Investor in accordance with its terms, except as such enforceability
                may be limited by principles of public policy, and subject to (i) the
                effect of any Applicable Law of general application relating to
                bankruptcy, reorganization, insolvency, moratorium or similar Applicable
                Laws affecting creditors’ rights and relief of debtors generally and
                (ii) the effect of rules of law and general principles of equity,
                including rules of law and general principles of equity governing
                specific
                performance, injunctive relief and other equitable remedies (regardless
                of
                whether such enforceability is considered in a proceeding in equity
                or at
                law).

            

    

    

    
      	
              2             

            	
              Organization:  The
                Investor is a company incorporated, validly existing and in good
                standing
                under the General Corporation Law of the State of Delaware, and has
                all
                requisite corporate power and authority to own, operate or lease
                the
                properties and assets now owned, operated or leased by it, and to
                carry on
                its business in all material respects as currently
                conducted.  True and complete copies of the certificate of
                incorporation (the “Investor Charter Document”) [and Bylaws (the
                “Investor’s Bylaws”)] of the Investor, [each] as amended and in
                effect as of the date of this Agreement, have been made available
                to the
                Company and Promoters.  The Investor is not in violation of any
                of the provisions of the Investor Charter Document or the Investor’s
                Bylaws.

            

    

     

     

     

    
 

    
      
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              3             

            	
              Investor
                Capitalization:

            

    

    

    
      	
              3.1  

            	
              As
                of the date of this Agreement, 9,062,500  shares of Investor’s
                common stock are issued and outstanding.  Except as set forth
                under Section 3(a) of the Investor Disclosure Schedule, no other
                equity
                securities of the Investor are issued or outstanding.  All such
                issued and outstanding shares of common stock have been duly authorized
                and validly issued, and were not issued in violation of any preemptive
                or
                similar rights created by statute, the Investor Charter Documents,
                the
                Investor’s Bylaws or any agreement to which the Investor is a party or by
                which it is bound, and have been issued in compliance with applicable
                U.S.
                Federal securities Laws.

            

    

    

    
      	
              3.2  

            	
              As
                of the date of this Agreement, except as set forth in Section 3.2
                of the
                Investor Disclosure Schedule, there are (i) no outstanding options,
                warrants, calls, rights of conversion or other rights, agreements,
                arrangements or commitments of any kind or character, whether written
                or
                oral, relating to the shares of common stock to which the Investor
                is a
                party, or by which it is bound, obligating the Investor to issue,
                deliver
                or sell, or cause to be issued, delivered or sold, any shares of
                common
                stock, and (ii) no outstanding or authorized share appreciation,
                phantom share, profit participation, or other similar rights with
                respect
                to the Investor.

            

    

    

    
      	
              3.3  

            	
              As
                of the date of this Agreement, except as set forth in Section 3.3
                of the
                Investor Disclosure Schedule, there are (i) no rights, agreements,
                arrangements or commitments of any kind or character, whether written
                or
                oral, relating to the shares of common stock to which the Investor
                is a
                party, or by which it is bound, obligating the Investor to repurchase,
                redeem or otherwise acquire any issued and outstanding shares of
                common
                stock ; and (ii) no voting agreements, member agreements, proxies or
                other agreements or understandings in effect to which the Investor
                is a
                party, or by which it is bound, with respect to the governance of
                Investor
                or the voting or transfer of any shares of common stock. 

            

    

    

    
      	
              4             

            	
              Investor
                Subsidiaries:

            

    

    

    
      	
              4.1  

            	
              Section 4(a)
                of the Investor Disclosure Schedule sets forth (i) the legal name of
                the Investor’s Dubai Subsidiary as of the date of this Agreement and
                (ii) the proposed capitalization thereof and the proposed ownership
                of interest in the Investor’s Dubai Subsidiary. All issued and outstanding
                equity interests in the Investor’s Dubai Subsidiary will be owned
                beneficially and of record by the Investor, free and clear of all
                Encumbrances of any kind or any restrictions on the right to vote,
                sell or
                otherwise dispose of such equity interest. No Person other than the
                Investor will have any economic interest in, or right to participate
                in,
                the earnings of the Investor’s Dubai
                Subsidiary.

            

    

    

    
      	
              4.2  

            	
              When
                incorporated the Investor’s Dubai Subsidiary will be duly organized,
                validly existing and in good standing under the laws of its jurisdiction
                of organization, and have the requisite power and authority to own,
                operate or lease the respective properties and assets that it may
                own,
                operate or lease, and carry on its business in all material respects.
                The
                Investor’s Dubai Subsidiary will be duly qualified to do business as a
                foreign entity, and be in good standing, under the Laws of the
                jurisdiction in which the character of its properties are owned,
                operated
                or leased, or the nature of its activities, makes such qualification
                necessary. 

            

    

    

    
      	
              5             

            	
              Conflicts
                and Consents:  The execution and delivery by the Investor of
                this Agreement and the other agreements contemplated hereby, the
                performance by the Investor of its obligations hereunder and thereunder
                and the consummation by the Investor of the transactions contemplated
                hereby and thereby does not and will not (i) conflict with or result
                in a violation of the Investor Charter Document or the Investor’s Bylaws
                or any equivalent organizational documents of any Investor Subsidiary;
                (ii) conflict with or result in a violation of any Governmental Order
                or
                Law applicable to the Investor, or any Investor Subsidiary or any
                of their
                respective assets or properties; or (iii) except for the Investor
                Shareholders Approval, require any consent or approval under, result
                in a
                breach of, or constitute a material default (or event which with
                the
                giving of notice or lapse of time, or both, would become a material
                default) under, or give rise to any rights of termination, amendment,
                modification, acceleration or cancellation of or loss of any benefit
                under, or result in the creation of any Encumbrance on any of the
                assets
                or properties of the Investor or any Investor Subsidiary pursuant
                to any
                Contract or any material Permit.

            

    

     

     

     

    
 

    
      
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              6             

            	
              Governmental
                Consents, Approvals, Etc.:  Except as set forth in Section 6
                of the Investor Disclosure Schedule, no consent, waiver, approval,
                authorization, order or permit of, or declaration, filing or registration
                with, or notification to, any Governmental Authority is required
                to be
                made or obtained by the Investor or any Investor Subsidiary in connection
                with the execution and delivery of this Agreement by the Investor
                or the
                consummation by the Investor of the transactions contemplated by
                this
                Agreement.

            

    

    

    
      	
              7             

            	
              Litigation
                and Governmental Orders:  There are no material Actions
                pending or, to the Knowledge of the Investor, threatened against
                the
                Investor or any Investor Subsidiary, any of the assets or properties
                of
                the Investor or any Investor Subsidiary, or any of the directors
                and
                officers of the Investor or any Investor Subsidiary in their capacity
                as
                directors or officers of the Investor or any Investor Subsidiary,
                and none
                of the Investor, any Investor Subsidiary or their respective assets
                or
                properties is subject to any material Governmental Order relating
                specifically to the Investor, any Investor Subsidiary or any of their
                respective assets or properties.

            

    

    

    
      	
              8             

            	
              Compliance
                with Laws:  Neither the Investor nor any Investor Subsidiary
                has received any written notice from any Governmental Authority to
                the
                effect that the Investor or any Investor Subsidiary is not in compliance
                with any applicable Law.

            

    

    

    
      	
              9             

            	
              Investor
                SEC Reports:  Since its inception, the Investor has filed
                all reports, registration statements and other documents, together
                with
                any amendments thereto, required to be filed under the Securities
                Act and
                the Exchange Act, and the Investor will file all such reports,
                registration statements and other documents required to be filed
                by the
                Investor from the date of this Agreement to the Closing Date (all
                such
                reports, registration statements and documents filed or to be filed
                with
                the SEC, are collectively referred to as “Investor SEC
                Reports”).  As of their respective dates, the Investor SEC
                Reports complied or will comply in all material respects with all
                rules
                and regulations promulgated by the SEC and did not or will not contain
                any
                untrue statement of a material fact or omit to state a material fact
                required to be stated therein or necessary in order to make the statements
                therein, in light of the circumstances under which they were made,
                not
                misleading.  The Investor has provided to the Company and
                Promoters a true and complete copy of all Investor SEC Reports filed
                on or
                prior to the date hereof, and will promptly provide to the Company
                and
                Promoters a true and complete copy of any such reports filed after
                the
                date hereof and prior to the Closing
                Date.

            

    

    

    
      	
              10           

            	
              Investor
                Proxy Statement:  None of the information to be supplied by
                the Investor or any Investor Subsidiary for inclusion in the Investor
                Proxy Statement at the time of the mailing of the Investor Proxy
                Statement
                and each amendment or supplement thereto, and at the time of the
                Investor
                Special Meeting, will contain any untrue statement of a material
                fact or
                will omit to state any material fact required to be stated therein
                or
                necessary in order to make the statements therein, in light of the
                circumstances under which they are made, not
                misleading.

            

    

     

    
      	
              11           

            	
              Brokers:  Except
                for Step Two Corporation Limited (the “Investor Financial
                Advisor”), which is entitled to certain investment banking and
                advisory fees in connection with the transactions contemplated by
                this
                Agreement, no broker, finder, investment banker or other person is
                entitled to any brokerage fee, finders’ fee or other commission in
                connection with the transactions contemplated by this Agreement based
                upon
                arrangements made by or on behalf of the Investor, any Investor
                Subsidiary, or any of their respective
                Affiliates.

            

    

     

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        52

        
          

        

      

      
        
        

      

    

    SCHEDULE
      8 – PRE-COMPLETION SHAREHOLDING OF SMC GROUP COMPANIES

     

    

    

    
 

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    SMC
      Global Securities Limited

    

    
      	
              Name
                of Shareholders

            	
              No.
                of Shares

            	
              Percentage

            
	
              Mahesh
                C. Gupta

            	
              1024850

            	
              13.66

            
	
              Subhash
                Chand Aggarwal

            	
              1009550

            	
              13.45

            
	
              Sushma
                Gupta

            	
              833100

            	
              11.10

            
	
              Hemlata
                Aggarwal

            	
              828500

            	
              11.04

            
	
              Ginni
                Devi

            	
              220000

            	
              2.93

            
	
              Madan
                Gopal Aggarwal

            	
              98400

            	
              1.31

            
	
              Dinesh
                Chand Gupta

            	
              100100

            	
              1.33

            
	
              Others

            	
              3390600

            	
              45.18

            
	
              Total

            	
              7505100

            	
              100.00

            

    

    

    SMC
      Comtrade Limited

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                GLOBAL SECURITIES LTD.

            	
              99994

            	
              99.994

            
	
              M.G.
                Aggarwal

            	
              1

            	
              0.001

            
	
              Sushma
                Gupta

            	
              1

            	
              0.001

            
	
              Hemlata
                Aggarwal

            	
              1

            	
              0.001

            
	
              Shyam
                Sunder Gupta

            	
              1

            	
              0.001

            
	
              S.C.
                Aggarwal

            	
              1

            	
              0.001

            
	
              Mr.
                Mahesh C. Gupta

            	
              1

            	
              0.001

            
	
               

            	
               

            	
               

            
	
              TOTAL

            	
              100000

            	
              100

            

    

    

    SMC
      Comex International Limited

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares

            	
              Percentage

            
	
               

            	
               

            	
               

            
	 	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              1300

            	
              100

            
	
               

            	
               

            	
               

            
	
              TOTAL

            	
              1300

            	
              100

            

    

    

    DSP
      Insurance Brokers Private Limited

    

    
      	
              Name
                of Shareholder

            	
              No
                of Shares

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              599,900

            	
              99.983

            
	
              Mahesh
                C Gupta

            	
              100

            	
              0.017

            
	
              TOTAL

            	
              600000

            	
              100

            

    

    

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    

    Abhichhaya
      Investments Private Limited

    

    
      	
              Name
                of Shareholder

            	
              No.
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              Promoters

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              18,200

            	
              39.91

            
	
              SAM
                Global Securities Ltd.

            	
              12,200

            	
              26.75

            
	
              Others

            	
              15,200

            	
              33.34

            
	
              TOTAL

            	
              45600

            	
              100

            

    

    

    Pulin
      Investments Private Limited

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              SMC
                Comtrade Limited

            	
              14,000

            	
              39.88

            
	
              SAM
                Global Securities Ltd.

            	
              9,400

            	
              26.78

            
	
              Others

            	
              11,700

            	
              33.34

            
	
              TOTAL

            	
              35100

            	
              100

            

    

    

    Nexgen
      Capitals Limited

    

    
      	
              Name
                of Shareholder

            	
              No
                of shares held

            	
              Percentage

            
	
               

            	
               

            	
               

            
	
              Abhichhaya
                Investments (P) Ltd.

            	
              1141897

            	
              44.93

            
	
              Pulin
                Investments (P) Ltd.

            	
              1195363

            	
              47.03

            
	
              SMC
                Comtrade Limited

            	
              69,600

            	
              2.74

            
	
              Others

            	
              134,800

            	
              5.3

            
	
              TOTAL

            	
              2541660

            	
              100

            

    

    

    

    

    

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        55

        
          

        

      

      
        
        

      

    

    SCHEDULE
      9 – LIST OF REGULATORY APPROVALS

     

    Regulatory
      approval for Investor in India:

    

    
      	»   	
              Approval
                from Foreign Investment Promotion Board for Investor to acquire Investor
                Shares in the Company and for Company to hold downstream investments
                in
                SMC Group Companies.

            

    

    

    Regulatory
      approval for the Company, Promoters and SMC Group Companies:

    

    
      	
              Name
                of Company

            	
              Activities

            	
              FDI
                regulations

            	
              Regulatory
                Approval required prior change in shareholding

            
	
              SMC
                Global Securities Limited

            	
              »  Investment
                is Shares & Securities

              »  NSE
                Trading,  Clearing Member & F&O Segment

               

            	
              »
                100%
                permitted to certain capitalization requirements

               

            	
              ·  NSE

              ·  Ludhiana
                Stock Exchange

              ·  Calcutta
                Stock Exchange

              ·  Delhi
                Stock Exchange

              ·  Ahmedabad
                Stock Exchange

               

            
	
              SMC
                Comtrade Limited (100% subsidiary of SMC Global Securities
                Limited)

            	
              Member
                – NCDEX & MCX

            	
              FDI
                up to 49% is permitted subject ot FIPB’s approval.

            	
              Prior
                approval from for change in shareholding in Dominant Promoter Group
                :

              ·  MCX

              ·  NCDEX

               

            
	
              SMC
                Comex International DMCC

            	
              License
                Certificate issued by UAE Securities and Commodities Authority and
                Trading
                License issued by the Dubai Multi-Commodities Centre

            	
              -

            	
              Intimation
                required before change in shareholding

            
	
              DSP
                Insurances Brokers Private Limited (100 % subsidiary of SMC
                Comtrade)

            	
              Direct
                Brokers licensed with IRDA

            	
              FDI
                upto 26% is permissible under the Automatic Route

               

              Subject
                to Licensing by the Insurance Regulatory & Development Authority.
                Regulation 10(2) of the IRDA (Insurance Brokers) Regulations, 2002
                restricts non-resident interest in insurance broking companies to
                26%.

            	
              Approval
                from IRDA

            
	
              Pulin
                Investment Private Limited

            	
              Investment
                Company

            	
              NIL

            	
              NIL

            
	
              Abhichaya
                Investments Private Limited

            	
              Investment
                Company

            	
              NIL

            	
              NIL

            
	
              Nexgen
                Capitals Limited

            	
              Category
                I Merchant Banker

               

            	
              FDI
                upto 100% is permissible under the automatic route subject to certain
                minimum capitalization requirements

            	
              Prior
                approval as per Regulation 9A (1) (a) and (b) SEBI (MB) Regulation,
                1992

            

    

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    SCHEDULE
      10 – LIST OF CLOSING DELIVERABLES

     

     

    
      	
              1)  

            	
              A
                certificate signed by the Promoters and the Company to the effect
                that the
                Representations and Warranties contained in this Agreement, continue
                to be
                true and correct as on the Completion Date with the same effect as
                though
                such Representations and Warranties had been made as of such
                date.

            

    

     

    
      	
              2)  

            	
              A
                certificate signed by the Promoters and the Company confirming the
                fulfillment of the Conditions
                Precedent.

            

    

     

    
      	
              3)  

            	
              A
                certificate from the Warrantors confirming that there has not been
                any
                Material Adverse Effect from the Effective Date to the Completion
                Date.

            

    

     

    
      	
              4)  

            	
              Original
                share certificates or credit to the depository account provided by
                the
                Investor that evidences the Subscription Shares being issued and
                allotted
                to the Investor in accordance with the provisions of this
                Agreement.

            

    

     

    
      	
              5)  

            	
              Certified
                true copies of the Register of Member of the Company and SMC Group
                Companies confirming the proposed shareholding as set out in Schedule
                3.

            

    

     

    
      	
              6)  

            	
              No
                Objection Letter pursuant to Press Note No. 1 and Press Note No.
                3 of
                2005, in a form set out in Annexure “2” shall be signed and delivered to
                the Investor by the Promoters, the Company and SMC Group
                Companies.

            

    

     

    
      	
              7)  

            	
              Articles
                of Association of the Company and SMC Group Companies amended in
                a form
                acceptable to the Investor to reflect the provisions of the Shareholders
                Agreement to be adopted on or at Completion
                Date.

            

    

     

    
      	
              8)  

            	
              Certified
                copies of board and shareholders resolutions of the Company approving
                execution of the Agreement and issue of Subscription Shares and transfer
                of Purchased Shares to Investor.

            

    

     

    
      	
              9)  

            	
              Certified
                true copies of the regulatory approvals as specified in Schedule
                9.

            

    

     

    
      	
              10)  

            	
              Chartered
                accountant certificate for fair value of shares as required under
                Foreign
                Exchange Management Act, 1999 and the guidelines of Reserve Bank
                of
                India.

            

    

     

    
      	
              11)  

            	
              Certificate
                from Company Secretary in Whole Time Practice confirming that the
                statutory records of the Company and SMC Group Companies are in accordance
                with the requirements of the Act.

            

    

     

    
      	
              12)  

            	
              Such
                other documents as are required under this Agreement and not specifically
                set out above and reasonably requested by the
                Investor.

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     ANNEXURE
      1 – FORM OF SHAREHOLDERS AGREEMENT

     

     

    [Attached
      separately with this Agreement]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    ANNEXURE
      2 – FORM OF NO OBJECTION LETTER

    [On
      the letterhead of SMC Limited]

    

    NO
      OBJECTION LETTER

    [         ,
      2007]

    

    Millennium
      India Acquisition Company Inc.

    330
      East,
      38th Street,

    Suite
      46C,

    New
      York,

    NY
      10016,
      USA

    

    Dear
      Sirs,

    

    
      Re: 
        No Objection Letter from SMC Global Securities Limited (the
“Company”)

    

    

    We
      write
      with reference to the understanding and arrangement with the Shareholders
      Agreement dated l
      2007, entered into by and between Millennium India Acquisition Company Inc.,
      SMC
      Global Securities Limited (“Company”) and the Promoters of the
      Company.

    

    
      	
              1.  
                 

            	
              We
                hereby irrevocable declare, acknowledge and confirm that Millennium
                India
                Acquisition Company Inc., their nominees, assignees, affiliates,
                subsidiaries and/or group companies (Collectively “Millennium”),
                shall not be subject to any restrictions or objections from us from
                entering into any business, opportunities, investments, joint ventures,
                collaborations, partnerships, alliances, enterprise, technology transfer,
                technology license, trademark agreement or any other collaboration,
                agreement or arrangement, by itself or through its subsidiaries,
                affiliates, joint ventures, partnerships, offices, representatives,
                contractors, or otherwise howsoever, in or outside
                India.

            

    

    

    
      	
              2. 
                  

            	
              We
                hereby irrevocably waive, for purposes of any Indian legal or regulatory
                requirements, any objection we may have in connection with any proposal
                by
                Millennium for investment in any business / arrangement with any
                person,
                including but not limited to waiver of our rights under Press Note
                1 and 3
                of 2005 of the Department of Industrial Promotion and Policy, Government
                of India in any business or activity other than financial services
                (i.e.
                stock broking, commodities broking, insurance broking and merchant
                banking) for a period of 5 years from the date of issue of this letter
                or
                termination of the Shareholders Agreement, whichever is earlier.
                However,
                this restriction will exclude proposed investments by Millennium
                in SAM
                Global Securities Limited.

            

    

    

    
      	
              3.  
                 

            	
              This
                no objection letter may be produced by Millennium to any government
                or
                regulatory authority in support of any proposal by Millennium for
                investment in any business / arrangement with any person. This letter
                may
                be treated as a declaration waiving our rights under Press Note 1
                and 3 of
                2005 of the Department of Industrial Promotion and Policy, Government
                of
                India. Our declaration and waiver under this letter is irrevocable.
                The
                contents of this letter shall be binding on us and on our heirs,
                executors, administrators, successors and permitted
                assigns.

            

    

     

     

     

    
 

    

    
      
        Strictly
          Private & Confidential

        
        

      

      
        59

        
          

        

      

      
        
        

      

    

    Yours
      sincerely,

    

    

    _____________________________

    Name:
      Mr.
      S.C. Aggarwal

    

    
 

    _____________________________

    Name:
      Mr.
      M.C. Gupta

    

    

    

    SMC
      Global Securities Limited

    

    

    
      _____________________________

    

    Name:  Mr.
      S.C. Aggarwal

    Title:   
      Chairman & Managing Director

    

    
      _____________________________
Mr.S.C.
      Aggarwal  (for and on behalf of following companies: (i) SMC Comtrade
      Limited, (ii) DSP Insurance Brokers Limited, (iii) Nexgen Capitals Limited,
      (iv)
      SMC Comex International DMCC, (v) Abhichaya Investment Private Limited, and
      (vi)
      Pulin Investment Private Limited pursuant to respective board resolution dated
      l)

    

    

    
      _____________________________

    

    Mr.
      S.C.
      Aggarwal and Mr. M.C. Gupta (for and on behalf of the Promoter
      Group)

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    ANNEXURE
      3 – DISCLOSURE SCHEDULE

     

    

    [Attached
      Separately]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    ANNEXURE
      4 – INVESTOR DISCLOSURE SCHEDULE

     

    

    [Attached
      Separately]

    
 

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        62

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