Document:

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EXHIBIT 10.8

UNIT PLACEMENT AGREEMENT

     UNIT
PLACEMENT AGREEMENT (this “Agreement”) made as of this ___ day of February, 2006 among
India Globalization Capital, Inc., a Maryland corporation (the “Company”), Ferris, Baker Watts
Incorporated (“FBW”) and the undersigned (the “Purchasers”).

     WHEREAS, the Company has filed with the Securities and Exchange Commission (“SEC”) a
registration statement on Form S-1, as amended (File No. 333-124942) (the “Registration
Statement”), in connection with the Company’s initial public offering (the “IPO”) of up to
9,830,000 units, each unit (“Unit”) consisting of one share of the Company’s common stock, $.0001
par value (the “Common Stock”), and (ii) two warrants (the “Warrants”), each Warrant to purchase
one share of Common Stock; and

     WHEREAS, the Company desires to sell in a private placement to the Purchasers (the
“Placement”) an aggregate of 170,000 units (the “Placement Units”) substantially identical to the
Units being issued in the IPO pursuant to the terms and conditions hereof and as set forth in the
Registration Statement, except that the Placement Units, Common Stock and Warrants to be issued in
the Placement shall not be registered under the Securities Act of 1933, as amended (the “Securities
Act”);

     WHEREAS, each Purchaser desires to acquire the number of Placement Units set forth opposite
his name on Schedule A hereto;

     WHEREAS, the Warrants included in the Placement Units shall be governed by the Warrant
Agreement filed as an exhibit to the Registration Statement; and

     WHEREAS, the Purchasers are entitled to registration rights with respect to the Common Stock
and the Warrants comprising the Placement Units and the Common Stock underlying such Warrants
(collectively, the “Registrable Securities”) on the terms set forth in this Agreement; and

     WHEREAS, FBW is acting as placement agent for the Placement.

     NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter
set forth, the parties hereto do hereby agree as follows:

     1. Purchase of Units. The Purchasers hereby agree, directly or through nominees, to
purchase an aggregate of 170,000 Placement Units at a purchase price of $6.00 per Placement Unit,
or an aggregate of $1,020,000 (the “Purchase Price”). Such purchases shall be in the names and
amounts set forth on Schedule A hereto.

     2. Closing. The closing of the purchase and sale of the Placement Units (the
“Closing”) will take place at such time and place as the parties may agree (the “Closing Date”),
but in no event later than the date on which the SEC declares the Registration Statement effective
(the “Effective Date”). On the Effective Date, the Purchasers shall pay the Purchase Price by

 

 

wire transfer of funds to an account maintained by the Company. Immediately prior to the
closing of the IPO, the Company shall deposit $1,020,000 of the Purchase Price into the trust
account described in the Registration Statement (the “Trust Account”). The certificates for the
Common Stock and Warrants comprising the Placement Units shall be delivered to the Purchasers
promptly after the closing of the IPO.

     3. Voting of Shares. If the Company solicits approval of its stockholders of a
Business Combination, the Purchasers shall vote all of the shares of the Common Stock acquired by
the Purchasers (i) pursuant to this Agreement, (ii) in the IPO and (iii) in the aftermarket in
favor of the Business Combination and therefore waive any redemption rights they might have with
respect to certain of such shares. As used herein, a “Business Combination” shall mean an
acquisition by merger, capital stock exchange, asset or stock acquisition of, or similar business
combination with, one or more entities with agreements to acquire vessels or an operating business
in the shipping industry selected by the Company.

     4. Waiver of Liquidation Distributions. In connection with the Placement Units
purchased pursuant to this Agreement, the Purchasers hereby waive any and all right, title,
interest or claim of any kind in or to any liquidating distributions by the Company in the event of
a liquidation of the Company upon the Company’s failure to timely complete a Business Combination.
For purposes of clarity, any shares of Common Stock purchased in the IPO or the aftermarket by the
Purchasers shall be eligible to receive any liquidating distributions by the Company.

     5. Lock-Up Agreement. The Purchasers shall not sell, assign, hypothecate, or transfer
any of the Common Stock purchased pursuant to this Agreement until the earlier of consummation of a
Business Combination or liquidation of the Company. In order to enforce this covenant, the
undersigned agrees, if requested by FBW, to deposit the Placement Units in an account to be
established at FBW.

     6. Representations and Warranties of the Purchasers. Each Purchaser hereby represents
and warrants to the Company that:

          6.1 The Purchaser is an “accredited investor” as that term is defined in Rule 501 of
Regulation D promulgated under the Securities Act.

          6.2 The Placement Units, Common Stock and Warrants are being acquired for the Purchaser’s own
account, only for investment purposes and not with a view to, or for resale in connection with, any
distribution or public offering thereof within the meaning of the Securities Act.

          6.3 The Purchaser has the full right, power and authority to enter into this Agreement and
this Agreement is a valid and legally binding obligation of the Purchaser enforceable against the
Purchaser in accordance with its terms.

     7. Registration Rights.

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          7.1 Demand Registration. At any time and from time to time on or after the date on
which the Company has publicly announced that it has entered into a letter of intent or made a
comparable announcement with respect to a Business Combination, the Purchasers or their transferees
holding a majority-in-interest of the Registrable Securities may make a written demand for
registration under the Securities Act of all or part of their Registrable Securities (a “Demand
Registration”). Any demand for a Demand Registration shall specify the number of Registrable
Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will
notify all holders of Registrable Securities of the demand, and each holder of Registrable
Securities who wishes to include all or a portion of such holder’s Registrable Securities in the
Demand Registration (each such holder including shares of Registrable Securities in such
registration, a “Demanding Holder”) shall so notify the Company within fifteen (15) days after the
receipt by the holder of the notice from the Company. Upon any such request, the Demanding Holders
shall be entitled to have their Registrable Securities included in the Demand Registration.

          The Company shall, as expeditiously as possible and in any event within sixty (60) days after
receipt of a request for a Demand, prepare and file with the SEC a Registration Statement on any
form for which the Company then qualifies or which counsel for the Company shall deem appropriate
and which form shall be available for the sale of all Registrable Securities to be registered
thereunder in accordance with the intended method(s) of distribution thereof, and shall use its
best efforts to cause such Registration Statement to become effective as promptly as practicable,
but in no event prior to the consummation of the Business Combination.

          The Company shall not be obligated to effect more than two Demand Registrations in respect of
Registrable Securities.

          7.2 “Piggyback” Registration Rights. Subject to the last sentence of this Section 7.2,
at any time after a Business Combination, if the Company shall determine to proceed with the actual
preparation and filing of a new registration statement under the Securities Act in connection with
the proposed offer and sale of any of its securities by it or any of its security holders (other
than a registration statement on Form S-4, S-8 or other limited purpose form), the Company will
give written notice of its determination to the Purchasers or their nominees. Upon the written
request from a majority-in-interest of the Purchasers, within 15 days after receipt of any such
notice from the Company, the Company will, except as herein provided, cause all of the Registrable
Securities covered by such request (the “Requested Stock”) held by the Purchasers making such
request (the “Requesting Holders”) to be included in such registration statement (each, a
“Piggy-Back Registration”), all to the extent requisite to permit the sale or other disposition by
the prospective seller or sellers of the Requested Stock; provided, further, that nothing herein
shall prevent the Company from, at any time, abandoning or delaying any registration. If any
registration pursuant to this Section 7.2 shall be underwritten in whole or in part, the Company
may require that the Requested Stock be included in the underwriting on the same terms and
conditions as the securities otherwise being sold through the underwriters. In such event, the
Requesting Holders shall, if requested by the underwriters, execute an underwriting agreement
containing customary representations and warranties by selling stockholders and a lock-up on
Registrable Securities not being sold. If in the good faith judgment

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of the managing underwriter of such public offering the inclusion of all of the Requested
Stock would reduce the number of shares to be offered by the Company or interfere with the
successful marketing of the shares of stock offered by the Company, the number of shares of
Requested Stock otherwise to be included in the underwritten public offering may be reduced pro
rata (by number of shares) among the Requesting Holders and all other holders of registration
rights who have requested inclusion of their securities or excluded in their entirety if so
required by the underwriter. To the extent only a portion of the Requested Stock is included in the
underwritten public offering, those shares of Requested Stock which are thus excluded from the
underwritten public offering and any other securities of the Company held by such holders shall be
withheld from the market by the Holders thereof for a period, not to exceed 90 days, which the
managing underwriter reasonably determines is necessary in order to effect the underwritten public
offering. At such time as the provisions of the registration rights agreement filed as an exhibit
to the Registration Statement covering the shares of Common Stock acquired by the Purchasers prior
to the IPO may be exercised, the exercise and procedural provisions of such agreement, rather than
the provisions of Sections 7.2, 7.3 and 7.4 hereof, shall govern the Registrable Securities with
respect to Piggy-Back Registrations.

          7.3 Registration Procedures. To the extent required by Sections 7.1 or 7.2, the Company will:

          (a) prepare and file with the SEC a registration statement with respect to such securities,
and use its best efforts to cause such registration statement to become and remain effective until
the earlier of the date on which all of the Registrable Securities included in the registration
statement have been disposed of in accordance with the intended method(s) of distribution set forth
in such Registration Statement or three years from the effective date;

          (b) prepare and file with the SEC such amendments to such registration statement and
supplements to the prospectus contained therein as may be necessary to keep such registration
statement effective until the earlier of the date on which all of the Registrable Securities
included in the registration statement have been disposed of in accordance with the intended
method(s) of distribution set forth in such Registration Statement or three years from the
effective date;

          (c) furnish to the holders participating in such registration and to the underwriters of the
securities being registered such reasonable number of copies of the registration statement,
preliminary prospectus, final prospectus and such other documents as such underwriters may
reasonably request in order to facilitate the public offering of such securities;

          (d) use its best efforts to register or qualify the securities covered by such registration
statement under such state securities or blue sky laws of such jurisdictions as the holders may
reasonably request in writing within 20 days following the original filing of such registration
statement, except that the Company shall not for any purpose be required to execute a general
consent to service of process or to qualify to do business as a foreign corporation in any
jurisdiction wherein it is not so qualified;

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          (e) notify the holders, promptly after it shall receive notice thereof, of the time when such
registration statement has become effective or a supplement to any prospectus forming a part of
such registration statement has been filed;

          (f) notify the holders promptly of any request by the SEC for the amending or supplementing of
such registration statement or prospectus or for additional information;

          (g) prepare and promptly file with the SEC and promptly notify such holders of the filing of
such amendment or supplement to such registration statement or prospectus as may be necessary to
correct any statements or omissions if, at the time when a prospectus relating to such securities
is required to be delivered under the Securities Act, any event shall have occurred as the result
of which any such prospectus or any other prospectus as then in effect would include an untrue
statement of a material fact or omit to state any material fact necessary to make the statements
therein, in the light of the circumstances in which they were made, not misleading; and

          (i) advise the holders, promptly after it shall receive notice or obtain knowledge thereof, of
the issuance of any stop order by the SEC suspending the effectiveness of such registration
statement or the initiation or threatening of any proceeding for that purpose and promptly use its
best efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop
order should be issued.

          The Purchasers shall cooperate with the Company in providing the information necessary to
effect the registration of the Registrable Securities, including completion of customary
questionnaires.

          7.4 Expenses. The Company shall bear all costs and expenses incurred in connection
with any Demand Registration pursuant to Section 7.1, any Piggy-Back Registration pursuant to
Section 7.2, and all expenses incurred in performing or complying with its other obligations under
this Agreement, whether or not the Registration Statement becomes effective, including, without
limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with
securities or “blue sky” laws (including fees and disbursements of counsel in connection with blue
sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) the Company’s
internal expenses (including, without limitation, all salaries and expenses of its officers and
employees); (v) the fees and expenses incurred in connection with the exchange listing of the
Registrable Securities; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and
disbursements of counsel for the Company and fees and expenses for independent certified public
accountants retained by the Company (including the expenses or costs associated with the delivery
of any opinions or comfort letters); (viii) the fees and expenses of any special experts retained
by the Company in connection with such registration and (ix) the fees and expenses of one legal
counsel selected by the holders of a majority-in-interest of the Registrable Securities included in
such registration. The Company shall have no obligation to pay any underwriting discounts or
selling commissions attributable to the Registrable Securities being sold by the holders thereof,
which underwriting discounts or selling commissions shall be borne

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by such holders. Additionally, in an underwritten offering, all selling shareholders and the
Company shall bear the expenses of the underwriter pro rata in proportion to the respective amount
of shares each is selling in such offering.

     8. Waiver of Claims; Indemnification The Purchasers hereby waive any and all rights to
assert any present or future claims, including any right of rescission, against the Company, FBW or
the other underwriters in the IPO with respect to their purchase of the Placement Units, and each
Purchaser agrees jointly and severally to indemnify and hold the Company, FBW and the other
underwriters in the IPO harmless from all losses, damages or expenses that relate to claims or
proceedings brought against the Company, FBW or such other underwriters by any Purchaser of the
Placement Units or their transferees, heirs, assigns or any subsequent holders of the Placement
Units.

     9. Counterparts; Facsimile. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same instrument. This Agreement or any counterpart may
be executed via facsimile transmission, and any such executed facsimile copy shall be treated as an
original.

     10. Governing Law. This Agreement shall for all purposes be deemed to be made under
and shall be construed in accordance with the laws of the State of Maryland. Each of the parties
hereby agrees that any action, proceeding or claim against it arising out of or relating in any way
to this Agreement shall be brought and enforced in the courts of the State of Maryland or the
United States District Court for the District of Maryland, and irrevocably submits to such
jurisdiction, which jurisdiction shall be exclusive. Each of the parties hereby waives any
objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.

IN WITNESS
WHEREOF, the undersigned have executed this Agreement as of the ___ day of February,
2006.

	 	 	 	 	 
	 	INDIA GLOBALIZATION CAPITAL, INC.

	 
	 	By:  	 	 
	 	 	Ram Mukunda, President and Chief Executive
Officer 	 
	 

	 	 	 	 	 
	 	FERRIS, BAKER WATTS INCORPORATED

	 
	 	By:  	 	 
	 

	 	 	 	 	 
	 	PURCHASERS:

	 
	 	 	 

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SCHEDULE A

8exv10w10

 

	 	 	 	 	 
	 

	 	EXHIBIT 10.10
	 	 

 

 

 

 

	 	 	 
	
	 
	 	February 14, 2006

Mr. Ram Mukunda

India Globalization Capital, Inc.

4336 Montgomery Ave.

Bethesda, MD 20814

Dear Ram,

      This letter will confirm and set forth the terms and conditions of engagement of Ferris, Baker
Watts, Incorporated (“FBW”) and SG Americas Securities, LLC
(“SG”) (collectively, the “Advisors”), by India
Globalization Capital, Inc. (the “Company”) as its financial advisors in connection with the proposed purchase by the Company of the stock or assets of
a target company or companies (the “Target”), by way of merger, purchase of, or exchange for all or
a portion of the stock of the Target, or otherwise (the
“Business Combination”). The Advisors’ services in
connection with the Business Combination are hereinafter referred to as the “Engagement”. The
decision to complete the Business Combination shall be at the sole discretion of the Company.

      The
Advisors shall perform financial advisory services for the Company, including, without limitation
and for purpose of illustration, assisting the Company in determining an appropriate acquisition
strategy and tactics, evaluating the consideration that may be offered to the Target and assisting
the Company in the negotiation of the financial terms and conditions of the Business Combination.
Such services shall also include conducting due
diligence of the target of a prospective Business Combination. In
performing their services hereunder, the Advisors may rely entirely, without independent investigation, on
publicly available information and such other information as may be
furnished to the Advisors by the Company
or the Target.

      The Company agrees to furnish to the Advisors all information concerning the Company and the proposed
Business Combination which the Advisors and you reasonably deem appropriate, and to use its best efforts to
cause the Target to furnish to the Advisors all information concerning the Target and to provide to the Advisors
reasonable access to the Company’s officers, directors, employees, accountants, and counsel. Except
as otherwise agreed to by the Company, or required by law, all information which is not publicly
available will be kept confidential by the Advisors. The Company hereby represents and warrants, to the best
of its knowledge, that all information furnished to the Advisors by the Company concerning the Company
(excluding forward-looking information, which will be prepared using such reasonable assumptions as
the Company considers appropriate) shall be complete and correct in all material respects when
furnished and shall not contain any untrue statements of a material fact. In rendering its services
hereunder, the Advisors will be using and relying primarily on publicly available information or other
information furnished by the Company and has not and does not assume any responsibility for
independent verification of such information or any independent appraisal or valuation of assets.
Further, in evaluating other companies, the Advisors will be using information contained in public reports
and information supplied by the Company, and have not and do not assume any responsibility for
independent verification of such information or independent appraisal or valuation of assets.

      To enable the Advisors to render these services in a professional manner, the Company agrees that the Advisors
shall have no responsibility to the Company, the Board of Directors, the Target or any other
parties for the accuracy,

 

 

			
	Mr. Ram Mukunda

India Globalization Capital, Inc.
	 	February 14, 2006

Page 2 of 4

completeness or legal sufficiency of any financial statements, memoranda or other documentation
prepared by or on behalf of the Company or for verification of any of the information contained
therein. Appropriate officials of the Company, as the Company may designate, will be responsible
for reviewing any memoranda or other documentation prior to its use to determine that, to the best
of their knowledge, it does not contain any material misstatements or omissions. The Company
recognizes that the Advisors’ ability to successfully perform the services contemplated herein is to a
great extent dependent upon the Company’s timely cooperation.

      For
the Advisors’ services in connection with the Engagement, the
Company shall pay to FBW, who shall pay a portion to SG, pursuant to their agreed-upon
allocation, an aggregate fee equal
to 2.0% of the Aggregate Consideration (as defined below) paid in connection with the Business Combination (the
“Business Combination Fee”). The Business Combination Fee shall be capped at $1,500,000 and
shall constitute the
Advisors’ compensation for
the Engagement and shall be paid upon consummation of the Business
Combination; provided that, to the extent that a portion of the
Aggregate Consideration constitutes earnouts or is subject to other
contingencies, the Business Combination Fee with respect to such
Aggregate Consideration shall only be due and payable when such
Aggregate Consideration is paid.

      “Aggregate Consideration”, used herein, means all payments of any type to or for the benefit
of the Target, its shareholders, creditors, or employees (including assumption or acquisition or
refinancing of debt obligations of the Target or related entities as
well as any earnout provisions) in the Business Combination whether in cash or by delivery of notes or other
securities or property of any type, including amounts paid into escrow. For purposes of determining
Aggregate Consideration, each share of Company common stock issued or issuable in connection with
the Business Combination shall be valued at the 10 day volume-weighted average price of the
Company’s common stock, as computed by Bloomberg, beginning on the fifth trading day immediately
preceding the day on which the Business Combination is consummated.

      In
addition to the foregoing fee, the Company will reimburse each of the
Advisors promptly, on a monthly basis,
for all of the reasonable out-of-pocket expenses incurred by the
Advisors in connection with the Engagement,
whether or not the Business Combination is consummated; provided,
however, that such expenses for the Advisors in
aggregate shall not exceed $25,000 without the prior consent of the Company.

      Whether or not the Business Combination is effected, the Company will indemnify and hold
harmless each of FBW and SG and each of its officers, directors, employees, attorneys, consultants, agents, servants,
parents, affiliates, successors and assigns, jointly and severally (hereinafter collectively
“Indemnitees”), from and against any and all losses, claims, damages, liabilities, awards, costs and
expenses, including but not limited to reasonable attorneys’ fees (hereinafter collectively “Claim”
or “Claims”) to which Indemnitees may become subject by virtue of, in connection with, resulting
from, or arising out of the Engagement. Without limitation — but in illustration — of the
foregoing, Claims shall include reasonable legal and other expenses, including the cost of any
investigation and preparation incurred by Indemnitees in connection with any pending or threatened
Claim by any person or entity, whether or not it results in a loss, damages, liability or award.
Indemnitees shall be indemnified and held harmless by the Company for any and all Claims whether
they arise under contract; foreign, federal, state or local law or ordinance; common law; or
otherwise.

      Notwithstanding
anything above to the contrary: (1) the Advisors shall promptly notify the Company
after any Claim is asserted, and the Company shall have the right,
upon notification to FBW or SG, as applicable, within
10 days thereafter, to assume the defense of such Claim or action and to appoint counsel reasonably
satisfactory to Indemnitees to conduct such defense, provided that
(A) all expenses and costs related
thereto shall be borne by the Company; and (B) the Indemnitees shall have the right to retain separate counsel, but the fees and
expenses of such counsel shall be at the expense of the Indemnified Parties, unless (i) the Company
has failed to assume the defense and employ counsel as required above, or (ii) the named parties to
any such action (including any impleaded parties) include both (A) the Indemnitees and (B) the
Company, and the Indemnitees shall have reasonably determined that the defenses available to them
are not available to the Company and/or may not be consistent with the best interests of the
Company or the Indemnitees (in which case the Company shall not have the right to assume the
defense of such action on behalf of the Indemnitees) and (2) the Company shall
not be liable to any Indemnitee for any Claim to the
extent that a court having jurisdiction shall have determined by a final, non-appealable, judgment,
that such Claim resulted from the gross negligence or

 

 

			
	Mr. Ram Mukunda

India Globalization Capital, Inc.
	 	February 14, 2006

Page 3 of 4

willful misconduct of such
Indemnitee.

      The foregoing commitment of the Company regarding indemnification will survive any termination
of the authorization provided by this letter.

      You
agree to promptly notify FBW and SG of any assertion against FBW, SG, the Company, or any other
person of any Claim or the commencement of any action or proceeding relating to the services
comprising the Engagement.

      The term of the Engagement will commence on the date of the Company’s acceptance of this
letter and will expire 24 months after the effective date of the
Company’s public offering or upon consummation of a Business Combination(s) with
Aggregate Consideration equal to at least 80% of the Company’s net assets. The Engagement may be
terminated (except as provided above with respect to reimbursement of expenses and indemnification)
by either of SG or FBW at any time with or without cause, upon 30 days written notice to
the Company. In the event that only one of the Advisors terminates its Engagement with the Company,
such termination shall not affect the Engagement between the Company and the remaining Advisor.

      The
Company agrees that FBW and SG have the right to place advertisements in financial and other
newspapers and journals at the Advisors’ own expense describing
the Advisors’ services to the Company in connection
with the Engagement if the Business Combination is consummated,
provided that the Advisors will submit a
copy of any such advertisement to the Company for its prior approval, which approval shall not be
unreasonably withheld or delayed.

      The
Advisors’ engagement by the Company is for the limited purposes set forth in this letter, and the
rights and obligations of each of FBW, SG and the Company are defined by this letter agreement. Each of
FBW, SG and the Company agrees that none of the other parties has any fiduciary duty to it or its stockholders,
officers and directors as a result of the engagement described in this letter agreement.

      The Advisors will assume that
all financial forecasts have been reasonably prepared and reflect the
best then currently available estimates and judgments of the
Company’s or the potential target’s management as to the expected
future financial performance of the Company or any potential target.

      The Company acknowledges that
all advice given by the Advisors in connection with this Engagement
is for the benefit and use of the Company in considering the Business
Combination. The Company agrees that no such advice shall be used
for any other purpose or be disclosed, reproduced, disseminated,
quoted or referred to at any time, in any manner or for any purpose,
nor shall any public references to the Advisors be made by or on behalf of the
Company, in each case without the Advisors’ prior written consent,
which consent shall not be unreasonably withheld.

      Each Advisor may delegate the
performance of any of the above services to an affiliate or
subsidiary of such Advisor. It is expressly understood and agreed
that neither Advisor is undertaking to provide any advice relating to
legal, regulatory, accounting or tax matters. In furtherance
thereof, the Company acknowledges and agrees that (a) it and its
affiliates have relied and will continue to rely on the advice of
its own legal, regulatory, tax and accounting advisors for all
matters relating to the Business Combination, and all other matters
and (b) neither it, nor any of its affiliates has received, or has
relied upon, the advice of either Advisor or any of its affiliates
regarding legal, regulatory, tax or accounting matters. In addition,
neither Advisor shall be liable for the acts or omissions of the
other Advisor in connection with this agreement or the Engagement.

      The Company acknowledges and
agrees that the Advisors have been retained to act as financial
advisors to the Company, and not as advisors to or agents of any
other person, and that the Company’s engagement of the Advisors is
not intended to confer rights upon any person not a party to this
Agreement (including shareholders, employees or creditors of the
Company) as against either Advisor or its affiliates, or their
respective directors, officers, employees or agents.

 

 

			
	Mr. Ram Mukunda

India Globalization Capital, Inc.
	 	February 14, 2006

Page 4 of 4

      Each Advisor shall act as an
independent contractor under this Agreement, and any duties arising
out of its engagement shall be owed solely to the Company. It is
understood that the responsibility of Advisors to the Company is
solely contractual in nature and the Advisors do not owe the Company, or
any other party, any fiduciary duty as a result of this Agreement.
Each party hereto waives any right to trial by jury it may have in
any way resulting from or arising out of this agreement or the
Engagement.

      This agreement shall be governed by and construed in accordance with the laws of the State of
New York.

      If the foregoing correctly sets forth our agreement, we would appreciate your signing both
enclosed copies of this letter in the space provided below and returning one of them to us. In the
event that we do not receive a copy of this letter evidencing your acceptance and agreement within
20 calendar days after the date hereof, the terms of this letter shall be null and void and of no
further force and effect.

	 	 	 	 	 
	 	Very truly yours,

FERRIS, BAKER WATTS, INCORPORATED

 	 
	 	By:  	 	 
	 	 	     Scott T. Bass 	 
	 	 	     Vice President 	 
	 

	 	 	 	 	 
	 	

SG AMERICAS SECURITIES, LLC

 	 
	 	By:  	 	 
	 	 	     Alan
Z.J. Zinser 	 
	 	 	     Director	 
	 

Accepted and Agreed:

INDIA GLOBALIZATION CAPITAL, INCORPORATED

	 	 	 	 	 
	 
	 	 	 	 
	By:

	 	 
	 	 
	

	 	     Authorized Officer
	 	 
	 
	 	 	 	 
	

Date:

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