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

    EXHIBIT
      10.2b

    
       

      
        	
                 

                 

                 

                 

                SHAREHOLDERS
                  AGREEMENT

                 

                 

                BETWEEN

                 

                 

                MILLENNIUM
                  INDIA ACQUISITION COMPANY INC

                 

                 

                AND

                 

                 

                SAM
                  GLOBAL SECURITIES LIMITED

                 

                 

                AND

                 

                 

                PROMOTERS
                  OF SAM 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

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      SHAREHOLDERS
        AGREEMENT

    

     

     

    TABLE
      OF CONTENTS

     

     

    
      
        	
                1.

              	
                DEFINITIONS

              	
                3

              
	 	 	 
	
                2.

              	
                COMPANY

              	
                7

              
	 	 	 
	
                3.

              	
                ADDITIONAL
                  CAPITAL

              	
                8

              
	 	 	 
	
                4.

              	
                CORPORATE
                  GOVERNANCE

              	
                9

              
	 	 	 
	
                5.

              	
                RESTRICTIONS
                  ON TRANSFER

              	
                14

              
	 	 	 
	
                6.

              	
                COVENANTS
                  OF PROMOTERS

              	
                18

              
	 	 	 
	
                7.

              	
                CONFIDENTIALITY

              	
                20

              
	 	 	 
	
                8.

              	
                ADDITIONAL
                  COVENANTS

              	
                20

              
	 	 	 
	
                9.

              	
                INDEMNIFICATION

              	
                22

              
	 	 	 
	
                10.

              	
                TERM

              	
                24

              
	 	 	 
	
                11.

              	
                TERMINATION

              	
                24

              
	 	 	 
	
                12.

              	
                RESOLUTION
                  OF DISPUTES

              	
                25

              
	 	 	 
	
                13.

              	
                GOVERNING
                  LAW

              	
                26

              
	 	 	 
	
                14.

              	
                NOTICES

              	
                26

              
	 	 	 
	
                15.

              	
                MISCELLANEOUS

              	
                27

              
	 	 	 
	
                SCHEDULES 

              	 
	 	 	 
	
                SCHEDULE
                  1:    PROMOTER
                  AND PROMOTER GROUP

              	 
	 	 	 
	
                SCHEDULE
                  2:    COMPANY
                  AND SAM GROUP COMPANIES

              	 
	 	 	 
	
                SCHEDULE
                  3:    KEY
                  MANAGERIAL PERSONNEL

              	 
	 	 	 
	
                SCHEDULE
                  4:    SHAREHOLDING
                  STRUCTURE OF COMPANY AND SAM GROUP COMPANIES

              	 
	 	 	 
	
                SCHEUDLE
                  5:    AMENDED
                  ARTICLES OF ASSOCIATION

              	 
	 	 	 
	
                SCHEDULE
                  6:    SPECIFIED
                  MATTERS

              	 
	 	 	 
	
                SCHEDULE
                  7:    DEED
                  OF ADHERENCE

              	 

      

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    SHAREHOLDERS
      AGREEMENT

     

     

    THIS
      SHAREHOLDERS 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)

            	
              SAM
                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” which expression shall, unless repugnant to the
                context or meaning thereof, be deemed to mean and include its
                successors); AND

            

    

     

    
      	
              (3)

            	
              MR.
                AJAY GARG (“Promoter No. 1”), son of late Mr.
                Ramanand Garg, Indian inhabitant, residing at C-346, Saraswati Vihar,
                Delhi - 110088; AND

            

    

     

    
      	
              (4)

            	
              SMC
                GLOBAL SECURITIES LIMITED (“Promoter No.
                2”), a company incorporated under the Indian
                Companies Act, 1956, having its registered office 17, Netaji Subhash
                Marg,
                Darya Ganj, New Delhi; AND

            

    

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              (5)

            	
              SMC
                SHARE BROKERS LIMITED (“Promoter No.
                3”), a company incorporated under the Indian
                Companies Act, 1956, having its registered office at 17, Netaji Subhash
                Marg, Darya Ganj, New Delhi; AND

            

    

     

    
      	
               (6)

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

            

    

     

     

    Promoter
      No.1, Promoter No.2and Promoter No.3 are collectively referred to as
“Promoters”.

     

    W
      H E R E A S:

     

    
      	
              A.

            	
              The
                Company is engaged in the business of dealing in the security market
                as
                stock broker and is providing depository services as a depository
                participant. The Company through SAM Group Companies (defined
                below) is engaged in the business of investment and merchant
                banking.

            

    

     

    
      	
              B.

            	
              Vide
                a Share Subscription Agreement dated     , May
                2007, the Investor has agreed to subscribe for 1,750,891 Equity Shares
                in
                the Company constituting 14.90% of the issued and paid-up share capital
                of
                the Company (“Subscription Shares”) on a fully diluted basis and as
                a consequence, an indirect proportionate shareholding in the SAM
                Group
                Companies listed in Schedule 2
                hereto.

            

    

     

    
      	
              C.

            	
              The
                Parties wish to record in writing the terms and conditions applicable
                to
                the future relationships between the shareholders of the Company
inter
                se and between the Company and its shareholders, and matters
                ancillary thereto.

            

    

     

     

    (i)  NOW,
      THEREFORE, IN CONSIDERATION OF THE COVENANTS AND REPRESENTATIONS SET FORTH
      HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES, INTENDING
      TO
      BE LEGALLY BOUND AGREE, AS FOLLOWS:

     

    
      	
              1.            

            	
              DEFINITIONS

            

    

     

    
      	
              1.1           

            	
              Capitalized
                terms used but not defined in this Agreement shall have the meanings
                assigned to them in the Share Subscription Agreement. 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:

            

    

     

    
      	
              a.  

            	
              “Act”
                shall mean the Indian Companies Act, 1956 and any amendment thereto
                or any
                other succeeding enactment for the time being in
                force;

            

    

     

    
      	
              b.  

            	
              “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;

            

    

     

    
      	
              c.  

            	
               “Agreement”
                shall mean this Shareholders Agreement together with the annexures
                thereto
                as from time to time made, amended, supplemented or replaced or otherwise
                modified in accordance with the terms of this
                Agreement;

            

    

     

    
      	
              d.  

            	
              “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;

            

    

     

    
      	
              e.  

            	
              "Articles
                of Association" means the Articles of Association of Company from time
                to time;

            

    

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              f.  

            	
              "Board"
                means the board of directors of the Company or any of the SAM Group
                Companies, as the context may
                require;

            

    

     

    
      	
              g.  

            	
              "Business"
                means the business carried on by the Company including the business
                carried on by each of the SAM Group
                Companies;

            

    

     

    
      	
              h.  

            	
              “Company”
                means SAM Global Securities Limited and for the purposes of Clause
                4 of
                this Agreement shall also include the SAM Group
                Companies;

            

    

     

    
      	
              i.  

            	
              "Completion"
                means the completion of the subscription by the Investor, and the
                allotment and issue by the Company to the Investor, of the Subscription
                Shares;

            

    

     

    
      	
              j.  

            	
              "Completion
                Date" means the date on which Completion takes place in accordance
                with the provisions of the Subscription
                Agreement;

            

    

     

    
      	
              k.  

            	
              "Covered
                Activity" means direct or indirect participation, whether or not for
                compensation, in the ownership, management or control of, or the
                provisions of advisory, consulting or any other services to, any
                business
                or entity engaged in a business or activity identical or similar
                to or
                that directly or indirectly competes with, the Business or any business
                or
                activities that may be commenced by Company or any of the SAM Group
                Companies after the Completion
                Date;

            

    

    

    
      	
              l.  

            	
              "Damages"
                means all claims, demands, actions, causes of action, assessments
                by a
                Government Authority, losses, investigations, proceedings, damages,
                penalties, fines, costs, payments, expenses and judgments, including
                interest and penalties and reasonable attorneys’ fees, disbursements and
                expenses;

            

    

    

    
      	
              m.  

            	
              “Directors”
                means the directors on the Board;

            

    

     

    
      	
              n.  

            	
              "Equity
                Shares" means voting equity shares with a par
                value of Rs. 10/- (Rupees Ten) each in the authorised and issued
                share
                capital of the Company;

            

    

     

    
      	
              o.  

            	
              “Effective
                Date” means the date of
                Completion.

            

    

     

    
      	
              p.  

            	
              ‘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 in India
                and
                US.

            

    

     

    
      	
              q.  

            	
              ‘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, (vi)
                Pulin
                Investment Private Limited, (vii) SMC Global Securities
                Limited.

            

    

     

    
      	
              r.  

            	
              "Indian
                GAAP" means statements of generally accepted accounting practice
                recommended by the Institute of Chartered Accountants of India and,
                where
                there are no principles recommended, the accounting principles accepted
                in
                India and consistently applied from period to period and throughout
                any
                period in accordance with the past practices of the
                Company;

            

    

     

    
      	
              s.  

            	
              "India"
                means the Republic of India as constituted from time to
                time;

            

    

     

    
      	
              t.  

            	
              "Key
                Managerial Personnel" means the persons listed in Schedule
                3 hereto;

            

    

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
              u.  

            	
              "Lien"
                means, with respect to any property or asset, any mortgage, pledge,
                hypothecation, charge, assignment, deposit arrangement, encumbrance,
                security interest, lien, voting agreement, right of first refusal,
                conditional sale agreement, title retention agreement, restriction,
                easement, option, fiduciary assignment and any security or similar
                agreement of any kind or nature
                whatsoever;

            

    

     

    
      	
              v.  

            	
              “Material
                Breach” shall mean any failure, neglect, breach or default by the
                Promoters in complying with the following: (i) restrictions and
                obligations in relation to transfer of the Equity Shares held by
                the
                Promoters and Promoter Group and Company in relation to SAM Group
                Companies (Clause 5.1, Clause 5.2 and Clause 5.4), (ii)
                appointment of Investor Director (Clause 4.1.1.1)
                and appointment of observer (Clause 4.1.1.6)
                (iii) appointment of Investor Alternate Director (Clause 4.1.3),
                (iv) listing of the Equity Shares of the Company as required under
                Clause
                6.3.,(v) anti-dilution right in Clause 5.8 and affirmative right
                of the
                Investor as indicated in the specified matters listed out in Schedule
                6 at
                point (a), (b), (d), (f), (h), (k), (l), (q). It will also include
                any
                failure, breach or default by Promoters or Promoter Group or the
                Company
                in relation to SAM Group Companies to vote through their respective
                appointed/nominated director or proxies otherwise than as required
                under
                the Agreement for the above
                provisions;

            

    

     

    
      	
              w.  

            	
              "Memorandum"
                means the Memorandum of Association of Company from time to
                time;

            

    

     

    
      	
              x.  

            	
              “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 SAM Group Companies, as the case
                may
                be;

            

    

     

    
      	
              y.  

            	
              "Person"
                means a human being, labor organization, partnership, association,
                joint
                venture, corporation, limited liability company, legal representative,
                trustee, trustee in bankruptcy, receiver or any other legal entity
                whatsoever;

            

    

     

    
      	
              z.  

            	
              “SEBI”
                means the Securities and Exchange Board of
                India;

            

    

     

    
      	
              aa.  

            	
              "Securities"
                shall have the meaning ascribed thereto in Clause 2(h) of the Securities
                Contract (Regulation) Act, 1956;

            

    

     

    
      	
              bb.  

            	
              "Shareholder"
                means shall mean Investor and Promoter Group collectively, and
                “Shareholder” shall mean any one of them
                individually;

            

    

     

    
      	
              cc.  

            	
              “SAM
                Group Companies” shall mean (i) Nexgen Capitals Limited, (ii)
                Abhichaya Investment Private Limited, and (iii) Pulin Investment
                Private
                Limited.

            

    

     

    
      	
              dd.  

            	
              "Subscription
                Agreement" means the agreement headed "ShareSubscription
                Agreement" dated __May 2007, executed or to be executed between the
                Company, the Investor and the Promoters, and in terms of which the
                Investor will subscribe for, and the Company will allot and issue
                to the
                Investor, the Subscription Shares;

            

    

     

    
      	
              ee.  

            	
              "Transaction
                Agreements" means (i) this Agreement, (ii) the Subscription Agreement,
                and (iii) any other agreements or documents included as a Transaction
                Agreement and designated as such by agreement in writing between
                the
                Parties.

            

    

     

    
      	
              1.2          

            	
              Interpretation:

            

    

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              1.2.1  

            	
              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.

            

    

     

    
      	
              1.2.2  

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

            

    

     

    
      	
              1.2.2.1  

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

            

    

     

    
      	
              1.2.2.2  

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

            

    

     

    
      	
              1.2.2.3  

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

            

    

     

    
      	
              1.2.2.4  

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

            

    

     

    
      	
              1.2.2.5  

            	
              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.

            

    

     

    
      	
              1.2.2.6  

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

            

    

     

    
      	
              1.2.2.7  

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

            

    

     

    
      	
              1.2.2.8  

            	
              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.

            

    

     

    
      	
              1.2.2.9  

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

            

    

     

    
      	
              1.2.2.10  

            	
              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

            

    

     

    
      	
              1.2.2.11  

            	
              Reference
                to “Investor”, 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
                the
                bonus shares shall be included.

            

    

     

    
      	
              1.2.2.12  

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

            

    

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              1.3          

            	
              Any
                agreement, covenant, representation, warranty, undertaking or liability
                arising under this Agreement on the part of Promoters shall be deemed
                to
                be made or given by such Promoters jointly and severally. Without
                limiting
                the generality of the foregoing, whenever used in this Agreement,
                except
                as otherwise expressly provided, "Promoters" shall include each
                Promoter, jointly and severally and Promoters shall be jointly and
                severally liable for any obligations hereunder. However, it is clarified
                that for the purpose of indemnity the term Promoter shall include:
                (i) Mr.
                M.C. Gupta, (ii) Mr. S.C. Aggarwal, (iii) Mr. Ajay Garg, (iv) SMC
                Global
                Securities Limited, (v)  SMC Share Brokers Limited and no other
                Promoters as indicated in the Promoter Group and any Promoters’ obligation
                to indemnify the Investor under this Agreement 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.

            

    

     

     

    
      	
              2.            

            	
              COMPANY

            

    

     

    
      	
              2.1          

            	
              As
                of the Completion Date, the authorized share capital of the Company
                shall
                be as follows:

            

    

     

    
      	
              Authorized
                Share Capital

            	
              No.
                of Shares

            	
              Value
                per Share

            
	
              Rs.
                120,000,000

            	
              12,000,000
                Equity Shares

            	
              Rs.
                10 Each

            

    

     

    
      	
              2.2  

            	
              As
                of the Completion Date, the issued, subscribed and paid-up share
                capital
                of Company shall be as follows:

            

    

     

    
      	
              Issued,
                Subscribed and Paid-up Share Capital

            	
              No.
                of Equity Shares

            	
              Value
                per Equity Share

            
	
               Rs.
                117,509,580

            	
              11,750,958

            	
              Rs.
                10 Each

            

    

     

    
      	
              2.3  

            	
              As
                of the Completion Date, the shareholding structure of each of the
                SAM
                Group Companies shall be as reflected in Schedule 4
                hereto.

            

    

     

    
      	
              2.4  

            	
              On
                or prior to Completion, the Company shall convene a meeting of its
                shareholders and shall take all the necessary steps required to amend
                the
                Articles of Association of Company to reflect the form of the Articles
                of
                Association set out at Schedule 5. On or prior to
                Completion the Company shall also cause the SAM Group Companies to
                take
                necessary steps to amend their respective articles of association
                to
                suitably reflect the provisions of this Agreement. The Promoters
                agree to
                vote all of their Equity Shares in favor of all resolutions required
                in
                order to amend the Articles of Association as
                aforesaid.

            

    

     

    
      	
              2.5  

            	
              The
                Company shall deliver to the Investor a certified true copy of the
                resolution of the general meeting/shareholders of the Company evidencing
                the amendment to the Articles of Association as stated above and
                a
                certified true copy of the filing receipt of Form 23 with the Registrar
                of
                Companies, regarding the same.

            

    

     

    
      	
              2.6  

            	
              The
                Parties hereby agree that in the event of any inconsistency between
                the
                provisions of this Agreement and the Memorandum and Articles of
                Association, then the provisions of this Agreement will prevail and
                the
                Shareholders shall expeditiously amend the Memorandum and Articles
                of
                Association to remove any such
                inconsistency.  

            

    

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              3.
                           

            	
              ADDITIONAL
                CAPITAL

            

    

     

    
      	
              3.1  

            	
              Additional
                Capital. If the Board of the Company, acting reasonably in the
                circumstances, decides at any time that borrowings from a bank or
                other
                outside sources are not desirable, and that funding by way of share
                capital is preferable to funding by way of loan account, which decision
                is
                approved in writing by the Investor ( any time within (i) 2 years
                from the
                date of Completion, or (ii) listing of the Equity Shares of the Company
                at
                National Stock Exchange Limited or Bombay Stock Exchange Limited,
                whichever is later), the Board shall request the shareholders, by
                issuance
                of a notice (the "Funding Notice") to the shareholders of the
                Company, to contribute, within 30 (thirty) days or such other period
                as
                required under Applicable Law after the issuance of the Funding Notice
                (the "Funding Period") additional capital to Company, pro
                rata to their respective holdings of the issued and paid-up share
                capital of Company, by way of subscription for additional Equity
                Shares in
                accordance with Section 81(1) of the Act. Provided that the Funding
                Period
                shall be extended by any period reasonably necessary to obtain any
                Government or regulatory approval for the purpose of contributing
                such
                additional capital.

            

    

     

    
      	
              3.2  

            	
              Determination
                of price. If additional capital is to be contributed pursuant to
                Clause 3.1, then the subscription price for
                such additional Equity Shares shall be determined by the Board and
                set out
                in the Funding Notice. The Company shall, promptly upon the receipt
                of
                such subscription price, issue the appropriate number of Equity Shares
                based upon the payments received from the
                shareholders.

            

    

     

    
      	
              3.3  

            	
              Failure
                to subscribe. In the event of a the Shareholder failing to subscribe
                for the additional Equity Shares offered to it within the Funding
                Period,
                such Equity Shares shall be offered to the other
                Shareholder.  In this event, the Shareholder shall be entitled
                to subscribe for all or any of the Equity Shares offered to it either
                itself or through its Affiliates or Promoter Group within 15 (fifteen)
                business days of receipt of the offer and irrespective of any change
                in
                the equity shareholding pattern of
                Company.

            

    

     

    
      	
              3.4  

            	
              Restriction
                on Renunciation. The Shareholders shall not renounce the right in
                respect of Equity Shares offered for subscription in favor of any
                other
                Person (other than an Affiliate or Promoter Group, as the case may
                be)
                without first giving the other Shareholder, a reasonable opportunity
                to
                subscribe for the Equity Shares on the same terms and conditions
                that such
                right is proposed to be renounced in favor of any other Person (other
                than
                an Affiliate or Promoter Group of the renouncing Party). No such
                renunciation will be made by the Promoters in favor of any Person
                if such
                renunciation will be detrimental to the interests of the Company
                or the
                Investor.

            

    

     

    
      	
              3.5  

            	
              Subscription
                through Affiliates or Promoter Group. Any Shareholder may subscribe
                for additional Equity Shares through any of its Affiliates or Promoter
                Group, as the case may be, under Clause 3.4, subject to the prior
                fulfillment of the following
                conditions:

            

    

     

    
      	
              3.5.1  

            	
              such
                Affiliate shall previously have signed a Deed of
                Adherence;

            

    

     

    
      	
              3.5.2  

            	
              prior
                to any such Affiliate ceasing to be an Affiliate of the relevant
                Shareholder, all of the Equity Shares held by such Affiliate in the
                Company shall be transferred to the Shareholder in question or to
                another
                Affiliate of the Shareholder in
                question;

            

    

     

    
      	
              3.5.3  

            	
              the
                relevant Shareholder shall guarantee the performance by such Affiliate
                of
                its duties, obligations and liabilities under this Agreement;
                and

            

    

     

    
      	
              3.5.4  

            	
              all
                the provisions of this Agreement that apply to the Shareholder shall
                apply
                to such Affiliate to the same
                extent.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
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        8

        
          

        

      

      
        
        

      

    

     

    
      	
              4.            

            	
              CORPORATE
                GOVERNANCE

            

    

     

    
      	
              4.1.1  

            	
              Composition
                of the Board

            

    

     

    
      	
              4.1.1.1  

            	
              For
                and during the term of this Agreement, the Investor shall be entitled
                to
                nominate and maintain in office, one (1) non-executive Director to
                the
                Board of the Company, and to propose the removal of any Director
                so
                appointed from office and to recommend the appointment of another
                in the
                place of the Director so removed, provided that the Board shall,
                as soon
                as practicable and in any event prior to the consideration of any
                other
                matter, upon notice from the Investor, remove such Director and appoint
                as
                Director such replacement designated or nominated by the Investor
                ("Investor Director"). 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 the bonus shares shall be
                included.

            

    

     

    
      	
              4.1.1.2  

            	
              The
                Investor Director shall be liable to retire by rotation in accordance
                with
                the provisions of the Act, but upon such retirement shall be eligible
                for
                re-appointment, and shall be duly re-appointed as Director, it being
                the
                intention of the Parties that the Investor Director shall remain
                Director
                at all times up to the termination of this
                Agreement.

            

    

     

    
      	
              4.1.1.3  

            	
              The
                Board shall have the overall responsibility for management of Company
                and
                may appoint and delegate such day to day functions to the chairman,
                the
                managing director, manager or to a committee, as it deems
                fit.

            

    

     

    
      	
              4.1.1.4  

            	
              The
                Investor Director shall have all powers and privileges in accordance
                with
                Applicable Law.

            

    

     

    
      	
               

            	
                  4.1.1.6 
                

            	
              Appointment
                of Observer. The Investor will have an option to appoint such
                “observer” in SAM Group Companies. If the Investor exercises its option to
                appoint such “observer”, the Company shall and Promoters shall ensure that
                such “observer” has the right to attend and speak at all such meetings of
                the SAM Group Companies and receives all notices, agendas, draft
                resolutions, reports and other documents provided by or on behalf
                of SAM
                Group Companies to its directors. It is clarified that the “observer”
                shall have no rights to vote at any such meetings of SAM Group Companies.
                The Company shall have and the Promoters shall have caused each of
                the SAM
                Group Companies to appoint a representative individual nominated
                by
                Investor as an “observer” with rights to attend all meetings of the board
                of directors, committees of the board of directors and the shareholders
                of
                each of the SAM Group Companies, if requested by the Investor at
                its
                discretion under this Clause
                4.1.1.6.

            

    

     

     

     

     

     

     

     

     

     

    
      
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              4.1.2  

            	
              Qualification
                Shares. A Director need not hold any qualification
                shares.

            

    

     

    
      	
              4.1.3  

            	
              Investor
                Alternate Director for Specified Matters. In the event that any
                Investor Director (an "Original Investor Director") is away for a
                continuous period of more than (3) months from the state in which
                the
                meetings of the Board are ordinarily held, the Board shall appoint
                another
                Director (an "InvestorAlternate Director") for and in place
                of the Original Investor Director. The Board shall only appoint such
                Investor Alternate Director nominated by the Investor. Such Investor
                Alternate Director shall be entitled to receive all materials supplied
                to
                Directors and shall also be entitled to attend all meetings of the
                Board
                and committees thereof in the absence of the Original Investor
                Director.

            

    

     

    
      	
              4.1.4  

            	
              Committees
                . The Investor Director shall be entitled to attend all committees
                and
                sub-committees (by whatever name called) of the Board. The Investor
                Director shall be a necessary part of the quorum for every meeting
                of the
                committee or sub-committee of the Board where any Specified Matters
                are
                considered.

            

    

     

    
      	
              4.1.5  

            	
              Liability
                of Investor Director

            

    

     

    
      	
              4.1.5.1  

            	
              The
                Promoters and the Company expressly agree that the Investor Director
                will
                be a non-executive Director and subject to Applicable Law will be
                considered as independent director.

            

    

     

    
      	
              4.1.5.2  

            	
              The
                Promoters and the Company expressly agree and undertake that the
                Investor
                Director shall not be in charge of, or responsible for the day to
                day
                management of the Company and shall not be deemed to be "officers
                in
                default" as the term is defined in the Act and shall accordingly
                not be
                liable for any default or failure of the Company in complying with
                the
                provisions of any Applicable Laws.

            

    

     

    
      	
              4.1.5.3  

            	
              The
                Promoters and the Company expressly agree that the Investor Director
                shall
                not be identified as officer in default of the Company or occupier
                of any
                premises used by Company or an employer of the employees of
                Company.

            

    

     

    
      	
              4.1.5.4  

            	
              Immediately
                upon Completion, the Company shall, and the Promoters shall ensure
                that
                Company shall, procure suitable Director and Officers Liability insurance
                of an amount of up to India Rupees Five Crores in favor of the Investor
                Director from a reputable insurance company acceptable to the Investor
                in
                respect of claims or liabilities resulting from the actions or omissions
                of the Investor Director as Directors of the Company for an amount
                acceptable to the Investor.

            

    

     

    
      	
              4.1.5.5  

            	
              Voting
                for appointment of Directors. The Promoters shall vote their Equity
                Shares in favor of all resolutions required for the election of person
                nominated to be Investor Director by the Investor in accordance with
                Clause 4.1.1.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
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        10

        
          

        

      

      
        
        

      

    

    
      	
              4.1.5.6  

            	
              Withdrawal
                of Nomination. The Investor shall at any time be entitled to provide
                written notice to the Board withdrawing its nomination of any Investor
                Director. Such written notice shall take immediate effect. On receipt
                of
                such written notice, the Promoters shall be bound to cause their
                Directors
                to vote in favor of the removal of the Investor Director whose candidature
                is withdrawn by the Investor.

            

    

     

    
      	
              4.2  

            	
              Board
                Meetings

            

    

     

    
      	
              4.2.1  

            	
              Number
                of Board Meetings. The Board shall meet at least 4 (four) times in
                every calendar year and at least once in every calendar quarter.
                All
                expenses and costs incurred for attending meetings of the Board by
                the
                Investor Director shall be borne by the Company. A Board meeting
                may also
                be held by teleconference or video conference and/or the presence
                of a
                Director at a meeting may be recorded if he is present over telephone
                or
                video conference, if such meeting or presence, as the case may be,
                is not
                contrary to law.

            

    

     

    
      	
              4.2.2  

            	
              Notice
                for Board Meetings. At least 7 (seven) days prior written notice shall
                be given to each of the Directors of any meeting of the Board or
                a
                committee or sub-committee of the Board where any Specified Matter
                are
                being considered. Every notice to an Investor Director shall also
                be sent
                to one of its designated addresses in India. A meeting of such Board
                or a
                committee meting where Specified Matters are proposed to be considered
                may
                be held at shorter notice with the written consent (which may be
                signified
                by letter, facsimile or e-mail with receipt acknowledged) of a majority
                of
                Directors which shall include at least 1 (one) Investor
                Director.

            

    

     

    
      	
              4.2.3  

            	
              Contents
                of the Notice. A reasonably detailed agenda shall be supplied to each
                Director along with the notice, together with the draft resolutions
                and
                other appropriate documentation with respect to agenda items calling
                for
                Board action, to adequately inform Directors regarding matters to
                come
                before the Board. Any Director wishing to place a matter on the agenda
                for
                any meeting of the Board may do so by communicating with the Chairman
                of
                the Board sufficiently in advance of the meeting of the Board so
                as to
                permit timely dissemination to all Directors of information with
                respect
                to the agenda items.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
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        11

        
          

        

      

      
        
        

      

    

     

    
      	
              4.2.4  

            	
              Quorum
                for Board meetings. A quorum of the Board shall include at least 1
                (one) Investor Director at the commencement and throughout the duration
                of
                the meeting where any Specified Matters are proposed to be or are
                considered. If the Investor Director is not present at any meeting
                of the
                Board ("Initial Meeting"), the meeting shall be adjourned to the
                same time and place in the next week (unless otherwise agreed by
                all the
                Directors) or if that day is not a day to the immediately succeeding
                business day. Not less than 5 (five) days notice shall be given of
                any
                adjourned meeting ("Adjourned Meeting"). At the Adjourned Meeting,
                the Board, in the absence of the Investor Director, the Board can
                decide
                upon matters other than the Specified Matters as provided in Clause
                4.3.5.
                If the Investor Director is unable to attend the Initial Meeting
                he shall
                on or before the date of the Adjourned Meeting convey in writing
                to the
                Company his acceptance or disagreement in relation to the Specified
                Matter
                proposed to be considered at such Initial Meeting or the Adjourned
                Meeting. It is understood between the Parties, that the Promoters
                shall
                ensure that none of the Specified Matters will be taken up at the
                Shareholders Meeting (except an agenda item for dividend required
                under
                the Act to be taken-up at the Annual General Meeting of the Company)
                unless: (i) it has been approved at the Board meeting with Investor
                Director voting in favor of such resolution, or (ii) the Investor
                Director
                has given his affirmative consent in writing to take-up and consider
                such
                Specified Matter at the Shareholders meeting. The Promoters and the
                Company in so far as the SAM Group Companies are concerned shall
                not
                exercise their voting rights at the Board and/or the Shareholders
                meeting
                against the decision conveyed by the Investor
                Director.

            

    

     

    
      	
              4.2.5  

            	
              Decisions
                of the Board. Subject to Clause 4.3.5, each Director shall have 1
                (one) vote and all decisions of the Board shall require the affirmative
                vote of a majority of the Directors at a duly convened meeting of
                the
                Board at which a quorum is present. In the event there is a vacancy
                on the
                Board and an individual has been designated to fill such vacancy,
                the
                first order of business shall be to fill such
                vacancy.

            

    

     

    
      	
              4.2.6  

            	
              Circular
                Resolution for Specified Matters. Subject to Clause 4.3.5 and except
                for those actions required by the Act to be determined at a meeting
                of the
                Board, all decisions of the Board may be taken by circular resolution.
                The
                notice period for any circular resolution considering any Specified
                Matter
                shall be 7 (seven) days. The draft of the resolution must be circulated
                to
                all Directors including the Investor Director and as regards the
                Investor
                Director a copy shall also be sent to one of its designated addresses
                in
                India. Each circular resolution must be in writing and will be deemed
                to
                have been passed only when signed by the Investor Director on any
                Specified Matter. 

            

    

     

    
      	
              4.3  

            	
              Shareholders
                Meetings

            

    

     

    
      	
              4.3.1  

            	
              General
                Meetings. An annual general meeting of the Shareholders shall be held
                within 6 (six) months of the end of each financial year. Subject
                to the
                foregoing, the Board or any of the Shareholders may convene an
                extraordinary general meeting of the Shareholders whenever they deem
                appropriate.

            

    

     

    
      	
              4.3.2  

            	
              Chairman
                for General Meeting. The chairman of the Board shall be the chairman
                for all general meetings. The chairman shall not have any second
                or
                casting vote.

            

    

     

     

     

     

     

     

     

     

     

     

     

    
      
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        12

        
          

        

      

      
        
        

      

    

    
      	
              4.3.3  

            	
              Proxies.
                Any Shareholder may appoint another Person as his proxy (and in case
                of a
                corporate shareholder, an authorized representative) to attend a
                meeting
                and vote thereat on such Shareholder’s behalf, provided that the power
                given to such proxy must be in
                writing.

            

    

     

    
      	
              4.3.4  

            	
              Quorum
                for General Meetings. To constitute a quorum for a general meeting of
                the Company where any Specified Matter is being considered, the presence
                in person or through proxy of an authorized representative of Investor
                shall be necessary at the commencement and throughout the duration
                of the
                meeting, unless the Investor has prior to the meeting conveyed in
                writing
                to the Company his acceptance or disagreement in relation to the
                Specified
                Matter proposed to be considered at such Shareholders Meeting. The
                Promoters and the Company in so far as the SAM Group Companies are
                concerned shall not exercise their voting rights at the Shareholders
                Meeting against the decision conveyed by the Investor
                Director.

            

    

     

    
      	
              4.3.5  

            	
              Specified
                Matters. Notwithstanding anything contained in this Agreement, during
                the subsistence of this Agreement:

            

    

     

    
      	
              4.3.5.1  

            	
              Each
                of the Specified Matters as contained in Schedule 6
                hereto shall be decided by the Company or the SAM Group Companies
                only
                through a resolution of its Board or shareholders, as the case may
                be.

            

    

     

    
      	
              4.3.5.2  

            	
              No
                resolution or decision shall be passed or taken by the Board or the
                shareholders of the Company or the SAM Group Companies with respect
                to any
                of the Specified Matters unless:

            

    

     

    
      	
              (i)  

            	
              Such
                resolution or decision is approved by a majority of the Board, which
                majority includes the affirmative vote of an Investor Director,
                or

            

    

     

    
      	
              (ii)  

            	
              Such
                resolution or decision is approved in writing by the Investor,
                or

            

    

     

    
      	
              (iii)  

            	
              The
                Investor, by itself or through proxy, votes in favor of such resolution
                at
                a general meeting of such company.

            

    

     

    
      	
              4.3.6  

            	
              Exercise
                of Voting & Other Rights 

            

    

     

    
      	
              4.3.6.1  

            	
              The
                Promoters and the Promoter Group and the Company, in so far as the
                SAM
                Group Companies is concerned undertake to ensure that they, their
                representatives and proxies representing them at the general meetings
                of
                the Company and the SAM 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.

            

    

     

    
      	
              4.3.6.2  

            	
              If
                a resolution contrary to the terms of this Agreement is passed at
                any
                meeting of shareholders or at any meeting of the Board or any committee
                or
                sub-committee thereof, such resolution shall be null and void.
                

            

    

     

     

     

     

     

     

     

     

     

     

    
      
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        13

        
          

        

      

      
        
        

      

    

    
      	
              4.3.7  

            	
              Avoidance
                of Conflict; Necessary Actions. Each Promoter shall vote all of its
                Equity Shares, and shall take all other actions necessary, to (i)
                ensure
                that the Company's Memorandum and Articles of Association facilitate
                and
                do not at any time conflict with any provision of this Agreement,
                and (ii)
                to ensure compliance by the Company of its obligations
                hereunder.

            

    

     

    
      	
              4.4  

            	
              Related
                Party Transaction. From the date of Completion, all transactions of
                the Promoters with the Company and/or the SAM Group Companies for
                expenses, income, and/or any contingent liability exceeding in an
                amount
                of INR 41 million in any Financial Year will require the prior approval
                of
                the Investor and all related party transactions shall be conducted
                at
                commercially justifiable terms and the relationship will be conducted
                at
                an arm's-length basis.

            

    

     

     

    
      	
              5.            

            	
              RESTRICTIONS
                ON TRANSFER

            

    

     

    
      	
              5.1  

            	
              Restrictions
                on Transfer. The Promoters and Promoter Group shall not be permitted,
                directly or indirectly, and shall not agree to do any of the following
                during the continuance of this Agreement except (a) if required under
                or
                as contemplated in Clause 5.2 of this Agreement, or (b) with the
                prior
                written consent of the Investor:

            

    

     

    
      	
              5.1.1  

            	
              transfer
                or exchange any Securities of the Company or SAM Group Companies
                other
                than in compliance with this Clause 5;

            

    

     

    
      	
              5.1.2  

            	
              pledge,
                mortgage, Lien, charge or otherwise encumber any Securities of the
                Company
                or SAM Group Companies;

            

    

     

    
      	
               

            	
                   
                5.1.3

            	
              redeem
                any Securities of the Company or SAM Group
                Companies.

            

    

     

    
      	
              5.2  

            	
              Permitted
                Transfers.

            

    

     

    
      	
              5.2.1  

            	
              Promoters
                and Promoter Group are permitted to transfer their Shares amongst
                themselves forming part of the Promoter Group, subject to compliance
                of
                and as permitted under Applicable
                Law;

            

    

     

    
      	
              5.2.2  

            	
              Subject
                to compliance of Applicable Law the Promoters and Promoter Group
                may
                transfer upto 10% of the issued and paid-up share capital of the
                Company,
                to any third party (“Purchaser”) in a financial year (i.e. April 1 to
                March 31), subject to (i) the Promoters and Promoter Groups shareholding
                in the Company not falling below 51% of the issued and paid-up share
                capital of the Company and (ii) the Promoters and Promoter Group
                not
                giving any favorable right to the Purchaser than that available to
                the
                Investor under the Shareholders
                Agreement;

            

    

     

     

     

     

     

     

     

     

     

     

    
      
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          Private & Confidential

        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
              5.2.3  

            	
              Subject
                to compliance of Applicable Law, if the Promoters and the Promoter
                Group
                have divested their Shares to third party under Clause 5.2.2 of this
                Agreement, Promoters and Promoter Group may transfer, in each financial
                year (i.e. April 1 to March 31) up to further 10% of the issued and
                paid-up share capital of the Company to any third party, provided:
                (a)
                they continue to hold at least 35.1% of the issued and paid-up share
                capital of the Company, and (b) are in ‘control’ of the Company, and (c)
                the Company’s shares are listed on either the Bombay Stock Exchange
                Limited or the National Stock Exchange Limited, and (d) Promoters
                and
                Promoter Group complying with the requirements indicated in Clause
                5.4 of
                this Agreement. The word ‘control’ for the purpose of this Clause 5.2.3
                shall mean (i) the right to appoint majority of the directors of
                the
                Company, (ii) power to direct the management or policies of the Company
                and (iii) Promoters continue to be classified as ‘Promoter’ of the Company
                under Applicable Law.

            

    

     

    
      	
              5.3  

            	
              Invalid
                Transfers. The Company shall refuse to register any transfer or other
                disposition of Securities purported to be made by the Promoters in
                breach
                of any of the provisions herein contained. The Shareholders shall
                cause
                their nominees on the Board to cast their votes in such a manner
                as to
                ensure that the Company registers all transfers made in accordance
                with
                this Agreement.

            

    

     

    
      	
              5.4  

            	
              Transfer
                of Shares by Promoter.

            

    

     

    
      	
              5.4.1  

            	
              Notice
                of Transfer. From the date of this Agreement, in the event the
                Promoters or Promoter Group or any of them propose to transfer any
                of
                their Securities in the Company (the “Offered Shares”) under Clause
                5.2.3, the Promoters and the Promoter Group shall first obtain and
                provide
                to the Investor a bonafide written offer from the proposed third
                party
                purchaser (the “Purchaser”) to purchase the Offered Shares. Such
                offer (the “Outside Offer”)
                shall:

            

    

     

    
      	
              5.4.1.1  

            	
              State
                the identity of the Purchaser (including the proposed ultimate beneficial
                owner of the Offered Shares), and any group of companies of which
                such
                proposed Purchaser is a part;

            

    

     

    
      	
              5.4.1.2  

            	
              State
                price per Share offered (“Offer
                Price”);

            

    

     

    
      	
              5.4.1.3  

            	
              State
                the number of Shares to be
                transferred;

            

    

     

    
      	
              5.4.1.4  

            	
              State
                the other material terms and conditions of the Outside Offer;
                and

            

    

     

    
      	
              5.4.1.5  

            	
              Contain
                an undertaking from the Purchaser that the Purchaser shall purchase
                the
                Shares held by Investor as of the date of the Outside Offer on the
                same
                price and terms as that offered to Promoter and/or Promoter Group
                excluding non-compete premium to the extent of fifteen (15%) of the
                Offer
                Price.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
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          Private & Confidential

        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
              5.4.2  

            	
              Option
                of Investor. Within Thirty (30) days after receipt of the Outside
                Offer, the Investor shall have the option, exercisable in its sole
                discretion to sell equal number of its Shares of the Company to the
                Purchaser at the price and substantially in accordance with the terms
                set
                out in the Outside Offer in priority of the Promoter and/or Promoter
                Group. The Investor shall notify the Promoter in writing (the “Transfer
                Notice”) within Thirty (30) days after receipt of the Outside Offer
                of
                the manner of exercise of its option under Clause 5.4.2. If no such
                Transfer Notice shall have been received by the Promoter or Promoter
                Group
                on the expiry of such period of Thirty (30) days, the Investor shall
                be
                deemed to have refused to exercise its option under Clause 5.4.2,
                in which
                event Promoter and/or Promoter Group may execute the transfer in
                favor of
                the Purchaser at the Offer Price and on the terms set forth in the
                Outside
                Offer within next Thirty (30) days thereafter, and can avail an additional
                premium of up to 15% of the Offer Price without offering it to Investor
                provided it is received as non-compete premium as may be permitted
                under
                Applicable Law. If the Promoters and/or Promoter Group fail to complete
                the transfer within this period of Thirty (30) days, the steps and
                procedure indicated in Clause 5.4 shall be again followed for any
                proposed
                transfer under this Clause 5.2.3.

            

    

     

    
      	
              5.5  

            	
              Transfer
                of shares by Investor.

            

    

     

    
      	
              5.5.1  

            	
              Investors
                shall have the right to sell all or part of the Shares as and when
                they
                desire without any restrictions. However, if any Investor, at any
                time
                during the subsistence of this Agreement, intends to sell or otherwise
                transfer all or part of their Shares of Company to third parties,
                Promoters shall have a right of first offer (“Promoters Right of First
                Offer") to buy the shares from Investor, whereupon the following
                procedure as indicated in Clause 5.5.2 to Clause 5.5.5. shall
                apply.

            

    

     

    
      	
              5.5.2  

            	
              Investor
                shall deliver a written notice (the "Investor Transfer Notice") to
                Promoters. Investor Transfer Notice shall state the number of Investor
                Shares to be sold together with:

            

    

     

    
      	
              5.5.2.1  

            	
              the
                identity of the proposed purchaser (including the proposed ultimate
                beneficial owner of the shares), and any group of companies of which
                such
                proposed purchaser is a part;

            

    

     

    
      	
              5.5.2.2  

            	
              State
                price per Share offered;

            

    

     

    
      	
              5.5.2.3  

            	
              State
                the other material terms and conditions of the
                offer.

            

    

     

    
      	
              5.5.3  

            	
              If
                the Promoters are willing to buy all of the Investor Shares on offer,
                the
                Promoters shall notify Investor in writing (the “Promoter Purchase
                Notice”) no later than thirty (30) days after the Investor Transfer
                Notice of Promoters intent to purchase all the Investor Shares on
                offer.
                If the Promoters exercise their right of first offer, then the Promoter
                Purchase Notice must: (i) relate to all the Investor Shares on offer,
                (ii)
                must set out the price at which the Promoters offer to purchase the
                Investor Shares on offer, and (iii) such price must be immediately
                payable
                to the Investor in cash on the date of sale of the offered Investor
                Shares
                to the Promoters.

            

    

     

    
      	
              5.5.4  

            	
              If
                no such Promoter Purchase Notice shall have been received by the
                Investor,
                Promoters shall be deemed to have refused to exercise their right
                of first
                offer and the Investor may execute the transfer of the Shares set
                forth in
                the Investor Transfer Notice in favour of any third party at a price
                not
                less than that offered to the Promoters, within a period of thirty
                (30)
                days from the date of the Investor Transfer
                Notice.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
              5.5.5  

            	
              On
                receipt of the Promoter Purchase Notice, the Investor shall at any
                time
                within a period of thirty (30) days sell the Shares on offer to the
                Promoters at the price set out in the Promoter Purchase Notice. It
                is
                agreed between the Parties that the Promoters Right of First Offer
                shall
                immediately lapse upon the listing of Company’s shares on the Bombay Stock
                Exchange Limited and/or the National Stock Exchange Limited and the
                Investor shall not be obligated by any provisions of Clause 5.5.
                Provided
                that the Investor sells the shares through the mechanism of the stock
                exchange.

            

    

     

    
      	
              5.6  

            	
              Government
                Approvals. It is hereby agreed
                that:

            

    

     

    
      	
              5.6.1  

            	
              any
                sale or transfer contemplated under the provisions of this Agreement
                shall
                be subject to any necessary Government or regulatory
                approvals;

            

    

     

    
      	
              5.6.2  

            	
              any
                time limit imposed by the provisions of this Agreement shall be extended
                in respect of any period reasonably necessary to obtain any Government
                or
                regulatory approval, provided that, the Parties shall use all reasonable
                endeavors to expedite the obtaining of any such approvals;
                and

            

    

     

    
      	
              5.6.3  

            	
              if
                the Investor is unable to take up any Securities to be transferred
                in
                accordance with the provisions of this Agreement or any part thereof
                due
                to any Applicable Laws, it shall be entitled to nominate any other
                party
                acceptable under Applicable Law to purchase such Securities or any
                part
                thereof and acceptable to the
                Promoters.

            

    

     

    
      	
              5.7  

            	
              Deed
                of Adherence

            

    

     

    In
      every
      case of a transfer of Securities by the Promoters to any Person in accordance
      with the provisions hereof, the Promoters shall ensure before transferring
      its
      Securities to such Person that:

     

    
      	
              5.7.1  

            	
              Such
                Person shall be bound by the obligations of the Promoters under this
                Agreement. Until compliance by such purchaser, the obligations of
                the
                Promoters under this Agreement shall not cease. Any such purchaser
                or
                transferee of the Securities shall, ipso facto, by virtue of its
                being
                such a purchaser/transferee be automatically bound by the obligations
                of
                the Promoters.

            

    

     

    
      	
              5.7.2  

            	
              Prior
                to the acquisition of the Securities, the purchaser of the Securities
                shall execute a Deed of Adherence in the content and form annexed
                hereto
                as Schedule 7. If the purchaser fails to or refuses to
                sign the said Deed of Adherence, then the transferring Shareholder
                shall
                not be entitled to transfer any Securities to the purchaser and any
                transfer not in accordance with this Clause shall be null and
                void.

            

    

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
      	
              5.8  

            	
              Anti-dilution
                Rights. Notwithstanding any other provisions of this Agreement, for
                a
                period of two (2) years from the Completion Date or till such time
                as the
                Company lists its Shares on the National Stock Exchange or Bombay
                Stock
                Exchange in accordance with Clause 6.3, whichever is later, the prior
                written consent of the Investor shall be required for the Company
                to make
                any new issuance of Securities of the Company. Provided that where
                the
                Investor consents to such issuance, the Company shall not offer any
                rights
                to such Person which will in any way conflict with the rights of
                the
                Investor. It is further expressly agreed that in the event any Person
                who
                invests in the Company is offered rights, including those relating
                to
                voting, dividends, transfer of shares, and further issues of shares,
                that
                are more favorable to such Person than those offered to the Investor,
                the
                Investor shall have the right to require the Promoters and the Company,
                and the Promoters and the Company shall ensure that the Investor
                is
                entitled to enjoy any and all such rights offered to such other Person,
                and the Parties agree to execute all such documents as are necessary
                to
                offer such additional rights to the
                Investor.

            

    

     

     

    
      	
              6.            

            	
              COVENANTS
                OF PROMOTERS

            

    

     

    
      	
              6.1  

            	
              Access/Information.
                From and after the date hereof until the termination of this Agreement,
                the Company and the Promoters shall, and Promoters shall cause the
                Company
                and each of the SAM Group Companies to, afford to and permit the
                Investor,
                access to its personnel, properties, books, contracts, commitments,
                financial and operating data and records and to discuss the business,
                affairs, operations, finances, regulatory status and other matters
                related
                to the Company and SAM Group Companies, with the Promoters and the
                Company. The Parties agree that the disclosure of information and
                documents by the Promoters and the Company to the Investor pursuant
                to
                this Agreement shall not relieve the Promoters or the Company from
                any
                obligation pursuant hereto.

            

    

     

    
      	
              6.2  

            	
              Non-Competition.

            

    

     

    
      	
              6.2.1  

            	
              As
                further consideration for the Investor’s agreement to subscribe for the
                Subscription Shares pursuant to the Subscription Agreement, each
                of the
                Promoters agrees that, except as expressly consented to by the Investor
                in
                writing, it shall not at any time after the date of this Agreement,
                directly or indirectly (by itself or through its affiliates) engage
                in or
                receive any financial benefit from any Covered Activity, whether
                as an
                employer, proprietor, partner shareholder, investor, director, officer,
                employee, consultant, agent or
                otherwise.

            

    

     

    
      	
              6.2.2  

            	
              Without
                affecting the generality of the above, it is agreed that on and after
                the
                date of this Agreement, the Promoters (by themselves or through their
                affiliates) shall engage in the Business only through the Company
                or the
                SAM Group Companies, as the case may
                be.

            

    

     

    
      	
              6.2.3  

            	
              Each
                of the Promoters agrees not to, and to cause its affiliates not to,
                engage, directly or indirectly in any of the following
                activities:

            

    

     

    
      	
              6.2.3.1  

            	
              the
                use or disclosure of any client database of the Company or SAM Group
                Companies or other know-how or other information pertaining to the
                customers or suppliers of the Company or SAM Group
                Companies;

            

    

     

    
      	
              6.2.3.2  

            	
              the
                solicitation of any customers or suppliers of the Company or SAM
                Group
                Companies to terminate or otherwise adversely modify their relationship
                with the Company; or

            

    

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
      	
              6.2.3.3  

            	
              the
                solicitation, engagement or retention in any capacity of any employee
                of
                the Company or SAM Group Companies or any director, officer or executive
                of the Company or SAM Group
                Companies.

            

    

     

    
      	
              6.2.4  

            	
              Each
                of the Promoters agrees not to initiate any new activities or expansions
                related to the Company and the SAM Group Companies’ existing or proposed
                line of business through any vehicle, including other companies where
                the
                Promoters have an interest. Such new initiative if undertaken would
                be
                undertaken only under the Company or through a wholly owned subsidiary
                of
                the Company.

            

    

     

    
      	
              6.2.5  

            	
              The
                Promoters shall endeavor to ensure that the Key Managerial Personnel
                of
                the Company shall not assume any executive responsibilities in any
                other
                company, without the prior written consent of the Investor for as
                long as
                they are employees or executive directors and/or hold executive
                responsibilities in the Company.

            

    

     

    
      	
              6.2.6  

            	
              The
                Promoters agree that during the term of this Agreement they shall
                not
                assume any business activity which results in a dilution of the management
                time spent by them in the activities of the Company or SAM Group
                Companies. The Promoters further undertake that they shall not commit
                any
                act, which has the effect of undermining their fiduciary duties and
                responsibilities to the Company without the prior written consent
                of the
                Investor.

            

    

     

    
      	
              6.2.7  

            	
              For
                the purpose of this Clause 6.2, the term ‘Promoter’ shall include MVR
                Share Trading Private Limited and Jai Ambey Share Broking Limited.
                Each of
                the covenants contained in this Clause 6.2 shall be construed as
                a
                separate covenant and if, in any judicial proceeding, a court shall
                refuse
                to enforce any of the separate covenants of this Clause 6.2, then
                such
                covenant shall be deemed included herein only to the extent enforceable
                as
                permitted under Applicable Laws for the purpose of such proceeding
                or any
                other judicial proceeding to the extent necessary to permit the remaining
                covenants to be enforced. The restrictions set forth in this Clause
                6.2
                shall be in addition to any restrictions imposed under the Applicable
                Laws
                of any jurisdiction.

            

    

     

    
      	
              6.3  

            	
              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 years from the Effective
                Date
                of this Agreement.

            

    

     

    
      	
              6.4  

            	
              No
                Pledge. The Investor shall not at any point in time be required to
                pledge its Securities or provide other support to any third party,
                including any lenders of funds to the
                Company.

            

    

     

    
      	
              6.5  

            	
              Liquidation
                Preference.  Subject to the provisions of the Act, in the
                event of any liquidation, dissolution or winding-up of the Company,
                the
                Investor shall be entitled to first receive, prior to any distribution
                to
                the Promoters and/or Promoter Group, the proceeds arising from such
                liquidation, dissolution or winding-up of the Company, to the extent
                of
                the Investment Amount. The balance, if any, shall be distributed
                among the
                holders of the Equity Shares including the Investor in proportion
                to their
                respective shareholding in the
                Company.

            

    

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              7.            

            	
              CONFIDENTIALITY

            

    

     

    
      	
              7.1  

            	
              Each
                Party hereby agrees that any information obtained by such Party (the
                "Receiving Party") which is, or would reasonably be perceived to
                be, proprietary to any other Party (the "Designated Party") or
                otherwise confidential, will not be disclosed without the prior written
                consent of the Designated Party, provided that any information shall
                not
                be deemed proprietary or confidential if (i) such information is
                now or
                subsequently becomes generally known or available by publication,
                commercial use or otherwise, through no fault of the Receiving Party,
                (ii)
                such information was previously known by the Receiving Party at the
                time
                of disclosure from a source other than the Designated Party without
                violation of an obligation of confidentiality, (iii) such information
                is
                independently developed by the Receiving Party without the use of
                any
                confidential or proprietary information, (iv) such information is
                lawfully
                obtained by the Receiving Party from a third party without violation
                of a
                confidentiality obligation, or (v) the Designated Party agrees in
                writing
                that such information may be disclosed by the Receiving
                Party.

            

    

     

    
      	
              7.2  

            	
              Notwithstanding
                Clause 7.1 above (i) each Party may disclose such information to
                its legal
                counsel, bankers and accountants (provided that such Party shall
                remain
                liable for the compliance by such Persons with the provisions hereof),
                (ii) such information may also be disclosed to the Investor’ lenders,
                members or shareholders (provided that the Investor shall remain
                liable
                for the compliance by such Persons with the provisions hereof), (iii)
                each
                Party may disclose such information as is required by Applicable
                Law,
                provided that, to the extent permitted by Applicable Law, the other
                Party
                is given prompt written notice and opportunity to object as soon
                as
                practicable prior to disclosure, and (iv) each Party may disclose
                such
                information when necessary to enforce such Party’s rights
                hereunder.

            

    

     

     

    
      	
              8.            

            	
              ADDITIONAL
                COVENANTS

            

    

     

    
      	
              8.1  

            	
              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 SAM Group Companies.

            

    

     

    
      	
              8.2  

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

            

    

     

    
      	
              8.3  

            	
              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 Group Companies or  Group Companies 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.

            

    

     

    
      	
              8.4  

            	
              Financial
                and accounting records.. 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. The right under this Section 8.4 shall survive termination
                of
                this Agreement till such time the Investor holds 7.451% of the issued
                and
                paid-up share capital of the Company at Completion (including bonus
                shares)

            

    

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	
              8.5  

            	
              Inspection
                & Audit Rights of Investor. The Company and SAM Group Companies
                shall and the Promoters shall ensure that the Company and SAM 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
                SAM
                Group Companies as may be required by Investor. The Investor shall
                have
                full and complete access to the premises, records, accounts, documents
                of
                Company, SAM Group Companies and their subsidiaries with rights,
                by itself
                or through its authorised representatives, to inspect such accounts,
                records and documents. Provided that the Investor shall ensure compliance
                of the provisions of the Securities and Exchange Board of India (Insider
                Trading Provisions), 2000.

            

    

     

    
      	
              8.6  

            	
              Investor
                shareholding. Promoters and the Company shall ensure that on
                completion of the proposed merger of the Company with SMC Global
                Securities Limited, the Investor will continue to hold at least 14.90%
                of
                the post merger issued and paid-up share capital of SMC Global Securities
                Limited

            

    

     

    
      	
              8.7  

            	
              The
                Company shall furnish and the Promoters shall ensure that the Company
                furnishes to the Investor and/or its assignees/nominees the following
                information as regards the Company and the SAM Group
                Companies:

            

    

     

    
      	
              8.7.1  

            	
              quarterly,
                semi-annual and unaudited annual financial statements shall be furnished
                to the Investor within 42 (forty-two) days of the end of each quarter,
                half-year and annual period. Audited annual financial statements
                shall be
                furnished to the Investor within 87 (eighty seven) days of the end
                of the
                period. Financial statements shall be accompanied by a report and
                a
                discussion of key issues and variances to the budget and to the previous
                period;

            

    

     

    
      	
              8.7.2  

            	
              Management
                Information System information and reports (in a format agreed upon
                between the Promoters and Investor including risk assessment reports)
                shall be provided by the Company to the Investor within 15 (fifteen)
                days
                of the end of each month;

            

    

     

    
      	
              8.7.3  

            	
              any
                material information including appointment/resignation of any Key
                Managerial Personnel within a period of 7 (seven) days from the Company
                possessing knowledge of the same;

            

    

     

    
      	
              8.7.4  

            	
              all
                other information reasonably requested by the Investor or by any
                Investor
                Director from time to time. Provided that the Investor Director shall
                and
                the Investor shall cause the Investor Director to ensure compliance
                of the
                requirements of Securities and Exchange Board of India Insider Trading
                Regulations, 2000.

            

    

     

    
      	
              8.8  

            	
              Further
                Public Offering. If the Promoter and the Company at any time after the
                Completion and during the term of this Agreement contemplate a Further
                Public Offering to the public shareholders by offloading their existing
                Equity Shares, the Investor shall have a right and an option to put
                up to
                equal number of the Equity Shares  proposed to be offered by the
                Promoters in such Further Public
                Offering.

            

    

     

    
      	
              8.9  

            	
              Annual
                Operating Budget& Business
                Plan

            

    

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	
              8.9.1  

            	
              Preparation
                of annual operating budget & business plan. The Company, Promoters
                and the Investor acknowledge that the Business will be conducted
                in
                accordance with an annual operating budget and business
                plan.

            

    

     

    
      	
              8.9.2  

            	
              Approval
                of annual operating budget & business plan. The annual
                operating budget and business plan shall be subject to approval by
                the
                Board. The annual operating budget and business plan may be only
                be
                amended subject to approval by the
                Board.

            

    

     

     

    
      	
              9.            

            	
              INDEMNIFICATION

            

    

     

    
      	
              9.1  

            	
              Indemnification
                by Company and Promoters.

            

    

     

    
      	
              9.1.1  

            	
              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) (excluding any indirect and remote Third Party Claims
                or
                loss of profit or opportunities or such punitive damages)
                (“Losses”), directly or indirectly, based upon, arising out of, or
                in relation to or otherwise in respect
                of:

            

    

     

    
      	
              9.1.1.1  

            	
              any
                willful misrepresentation or any breach of any Representation and
                Warranty, covenant or agreement of the Promoters or Company contained
                in
                this Agreement;

            

    

     

    
      	
              9.1.1.2  

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

            

    

     

    
      	
              9.1.1.3  

            	
              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;

            

    

     

    
      	
              9.1.1.4  

            	
              any
                Losses arising  out of the termination of license obtained by
                the Company from Bombay Stock Exchange
                Limited;

            

    

     

    
      	
              9.1.2  

            	
              Limitation
                of Liability. Promoters’ obligation to indemnify the Investor under
                Clause 9.1.2 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 purpose of this Clause
                9.1.2, the term Promoters shall only include:(i) Mr. M.C. Gupta,
                (ii) Mr.
                S.C. Aggarwal, (iii) Mr. Ajay Garg, (iv) SMC Global Securities Limited,
                (v)  SMC Share Brokers
                Limited.

            

    

     

    
      	
              9.1.3  

            	
              Any
                compensation or indemnity as referred to in Clause 9.1.2 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
                Losses.

            

    

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    
      	
              9.2  

            	
              Procedure
                for Indemnification.

            

    

     

    
      	
              9.2.1  

            	
              The
                Indemnified Party shall give notice to the Indemnifying Parties of
                any
                claim for indemnification ("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.

            

    

     

    
      	
              9.2.2  

            	
              With
                respect to a Claim solely between the Parties, following receipt
                of
                written notice from the Indemnified Party of a Claim, the Indemnifying
                Party shall have 15 (fifteen) days to make such investigation of
                the Claim
                as the Indemnifying Party deems necessary or desirable, and the
                Indemnified Party agrees to make available to the Indemnifying Party
                such
                information as may be reasonably necessary in order to substantiate
                the
                Claim. If the Indemnified Party and the Indemnifying Party agree
                at or
                prior to the expiration of the 15 (fifteen) 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 15 (fifteen) 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 Indemnified Party and
                the
                Indemnifying Part do not agree within the 15 (fifteen) day period,
                the
                Indemnifying Party shall immediately pay to the Indemnified Party
                the
                amount of such Claim to the extent the Parties agree or the amount
                of the
                Claim is undisputed, and the 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.

            

    

     

    
      	
              9.3  

            	
              Third-Party
                Claims. The obligations and liabilities of each Party under Clause
                9.1
                related to a claim asserted against the Indemnified Party by any
                third
                Person ("Third-Party Claim") shall be subject to the following
                terms and conditions:

            

    

     

    
      	
              9.3.1  

            	
              At
                any time after receipt of notice of any Third-Party Claim asserted
                against, imposed upon or incurred by an Indemnified Party, the 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 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 Indemnified
                Party, provided, however, that (i) the 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 Indemnified
                Party’s
                judgment a conflict of interest exists such 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.

            

    

     

    
      	
              9.3.2  

            	
              If
                within 15 (fifteen) days after written notice to the 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
                Indemnified Party against such Third Party Claim, the 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.

            

    

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    
      	
              9.3.3  

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

            

    

     

    
      	
              9.4  

            	
              Other
                Rights and Remedies Not Affected. The indemnification rights of the
                Parties under this Clause 9 are independent of, and in addition to,
                such
                rights and remedies as the Parties may have at law or in equity or
                otherwise for any intentional or knowing misrepresentations, breach
                of
                warranty or failure to fulfill any agreement or covenant hereunder
                on the
                part of any Party, including the right to seek specific performance,
                rescission, restitution or other injunctive relief, none of which
                rights
                or remedies shall be affected or diminished
                thereby.

            

    

     

     

    
      	
              10.          

            	
              TERM

            

    

     

    This
      Agreement shall enter into effect from the Effective Date and shall continue
      in
      force until the earlier of:

     

    (i)
      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 shall be included, or

     

    (ii)
      unless terminated earlier in accordance with Clause 11 below, or

     

    (iii)
      (a)
      listing of the Equity Shares of the Company on the Bombay Stock Exchange Limited
      and/or the National Stock Exchange Limited, or (b) four years from the Effective
      Date, whichever is later.

     

     

    
      	
              11.          

            	
              TERMINATION

            

    

     

    
      	
              11.1        

            	
              This
                Agreement may be terminated as
                follows:

            

    

     

    
      	
              11.1.1  

            	
              If
                so agreed in writing by Promoters and
                Investor;

            

    

     

    
      	
              11.1.2  

            	
              By
                either the Promoters or the Investor with immediate effect by notice
                in
                writing to the other Parties if the Company 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 Company or if Company is liquidated
                or
                dissolved;

            

    

     

    
      	
              11.1.3  

            	
              If
                the Promoters or any of them (the “Defaulting Party”) commits any
                Material Breach under this Agreement, the Investor may terminate
                this
                Agreement with immediate effect if such Material Breach by giving
                a notice
                to the Promoters for of such Material Breach and 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;

            

    

     

    
      	
              11.1.4  

            	
              With
                respect to Promoters or Investor, if either Promoters or 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 Promoters
                or the
                Investor or the if the Promoters or the Investor is liquidated or
                dissolved, the other of the Promoters or Investor that continues
                in
                existence may by written notice terminate this Agreement with immediate
                effect.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    
      	
              11.2

            	
              Consequences
                of Material Breach

            

    

     

    
      	
                     
                11.2.1

            	
              In
                the event of termination of this Agreement by the Investor under
                Clause
                11.1.3, then without prejudice to any other rights and remedies otherwise
                available to the Investor under law or this Agreement, the Investor
                shall
                have the right, exercisable at its sole discretion, at any time within
                Sixty (60) days of the effective date of termination of this Agreement
                to
                sell all or any of the Securities of the Company held by the Investor
                and/or its Affiliates to the Promoters in accordance with Clause
                11.2.3 at
                the price determined in accordance with Clause 11.2.4 (“Put
                Option”).

            

    

     

    
      	
                     
                11.2.2

            	
              On
                expiry of the 60-day period prescribed above, the Investor shall
                have the
                right to require the appointment of an independent valuer (“Independent
                Valuer”) for determining the fair market value of the Equity Shares
                of
                the Company. The costs of the Independent Valuer shall be borne and
                paid
                by the Company. The fair market value of the Shares of the Company
                determined by the Independent Valuer is herein referred to as the
                “FMV”. For the purpose of determining the FMV, the Independent
                Valuer shall value the Company and the SAM Group Companies on a going
                concern basis. The Independent Valuer shall use its best efforts
                to
                determine the FMV within thirty (30) days from the date of its
                appointment.

            

    

     

    
      	
            	
              11.2.3

            	
              Put
                Option.

            

    

     

    
      	
               

            	
              11.2.3.1

            	
              In
                the event of termination of this Agreement under Clause 11.1.3, the
                Investor shall have the right and option to call upon the Promoters
                to
                purchase all but not less than all the Securities held by the Investor
                (together with all Equity Shares held by Affiliates) in the Company
                by a
                written notice (“Put Option
                Notice”).

            

    

     

    
      	
               

            	
              11.2.3.2

            	
              On
                receipt of a Put Option Notice the Promoters shall be obliged to
                purchase
                all of the Shares of Company held by the Investor and its Affiliates
                within a period of sixty (60) days from the date of receipt of the
                Put
                Option Notice.

            

    

     

    
      	
            	
              11.2.5

            	
              PutOption
                Price: The “Put Option Price” shall be determined by increasing the
                FMV by a premium of Five Percent
                (5%).

            

    

     

    Provided
      however that, subject to Applicable Law, the Option Price shall not at any
      time
      be less than the Subscription Consideration less the consideration derived
      on
      selling Equity Shares held by the Investor and Affiliates.

     

     

     

    
      	
              12.          

            	
              RESOLUTION
                OF DISPUTES

            

    

     

    
      	
              12.1  

            	
              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 endeavor 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.

            

    

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    
      	
              12.2  

            	
              Conciliation:
                If the Parties are unable to amicably settle the Dispute in accordance
                with Clause 12.1 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 a retired High Court Judge or a reputed
                Chartered Accountant acceptable to both parties for resolution of
                the said
                Dispute. 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.

            

    

     

    
      	
              12.3  

            	
              Arbitration:
                If the Parties are unable to amicably settle the Dispute in accordance
                with Clause 12.2 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 Center (SIAC). The decision of
                the
                arbitration panel shall be binding on all the Parties to the
                Dispute.

            

    

     

    
      	
              12.3.1  

            	
              The
                place of the arbitration shall be
                Singapore.

            

    

     

    
      	
              12.3.2  

            	
              The
                proceedings of arbitration shall be in the English
                language.

            

    

     

    
      	
              12.3.3  

            	
              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.

            

    

     

    
      	
              12.3.4  

            	
              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.

            

    

     

    
      	
              12.3.5  

            	
              The
                Indian courts shall have exclusive
                jurisdiction.

            

    

     

     

    
      	
              13.          

            	
              GOVERNING
                LAW

            

    

     

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

     

     

    
      	
              14.          

            	
              NOTICES

            

    

     

    
      	
              14.1  

            	
              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:

            	
              Millennium
                India Acquisition Company Inc.

            

      	
              Address:

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

            

    

    
      	
              Tel:

            	
               

            	
              +1
                917 528 5632

            

    

    
      	
              Attention:

            	
              Mr.
                Jacob Cherian

            

    

     

    
      	
               

            	
              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

     

     

     

     

     

     

     

     

     

    
 

    
      
        Strictly
          Private & Confidential

        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    
      	
              (ii)  

            	
              Rajesh
                Begur

            

    

    A.R.A.
      LAW

    3/F
      Mahatma Gandhi Road

    Charni
      Road (West)

    Mumbai
–
400
      002

    
      	
            	
               

            	
              Fax:
                +91 22 2284 1800

            

    

    
      	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

                                    

    
      	The
              Company:	SAM
              Global Securities Limited

      	
              Address:

            	
              17,
                Netaji Subhash Marg, Darya Ganj, New
                Delhi

            

    

    
      	
              Tel:

            	
               

            	
              (+91)
                11-3011 1000

            

    

    
      	
              Facsimile:

            	
              (+91)
                011-2362 3297

            

    

    
      	
              Attention:

            	
              Mr.
                Ajay Garg

            

    

    
      	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            

    

    
      	
              The
                Promoters and Promoter Group:

            	
              Mr.
                S.C. Aggarwal

            

    

    
      	 	 

      	
              Address:

            	
              C-335,
                Saranwati Vihar, New Delhi-110 088

            

    

    
      	
               

            	
              Tel:
                (+91) 011 3011 1000

            

    

    
      	
               

            	
              Facsimile:
                (+91) 011-2362 3297

            

    

     

    
      	
              14.2  

            	
              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.

            

    

     

    
      	
              14.3  

            	
              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. 

            

    

     

     

    
      	
              15.          

            	
              MISCELLANEOUS

            

    

     

    
      	
              15.1  

            	
              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.

            

    

     

    
      	
              15.2  

            	
              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.

            

    

     

    
      	
              15.3  

            	
              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. 

            

    

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	
              15.4  

            	
              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.

            

    

     

    
      	
              15.5  

            	
              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 or its holding
                company
                or ultimate parent company or their Affiliates, without the consent
                of the
                other Parties. Provided that the Shares held by the Affiliate shall
                be
                re-transferred to the Investor before it ceases to be such
                Affiliate.

            

    

     

    
      	
              15.6  

            	
              Entire
                Agreement: This Agreement constitutes the entire Agreement between the
                Parties with respect to the purchase of the 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.

            

    

     

    
      	
              15.7  

            	
              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.

            

    

     

    
      	
              15.8  

            	
              Costs:
                Each Party shall bear its own expenses incurred in preparing this
                Agreement. The stamp duty and other costs payable: (i) on this Agreement,
                and (ii) the issue of Subscription Shares to the Investor, shall
                be borne
                by the Promoters and/or the Companies or SAM Group
                Companies.

            

    

     

    
      	
              15.9  

            	
              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.

            

    

     

    
      	
              15.10  

            	
              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.

            

    

     

    
      	
              15.11  

            	
              Survival.
                The provisions of Clause 4.1.1.1, Clause 8.4 and this Clause 15.11
                shall
                survive the termination of this Agreement. To give effect to the
                intent
                under the Agreement Clause 11.2 and Clause 12 and this Clause 15.11
                shall
                survive the termination of this
                Agreement.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    
      	
              15.12  

            	
              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.

            

    

     

    
      	
              15.13  

            	
              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

        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    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.

            	 	
              SAM
                Global Securities Limited

            
	 	 	 
	 	 	 
	 	 	 	 	 
	
              Name:
                Mr. F Jacob CHERIAN

            	 	
              Name:
                Ajay GARG

            
	
              Title:
                CEO & President

            	 	
              Title:
                Director

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              Name:
                Mr. Suhel KANUGA

            	 	 	 
	
              Title:
                CFO and Exec Vice President

            	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              PROMOTERS
                AND PROMOERS GROUP

            
	 	 	 	
              SMC
                Global Securities Limited

            
	 	 	 	 	 
	 	 	 	 	 
	
              Mr.
                Ajay GARG

            	 	 	
              Mr.
                S.C. AGGARWAL

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
              SMC
                Share Brokers Limited

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

            	 	
              Mr.
                M.C. GUPTA

            	 
	 	 	 	 	 
	 	 	 	 	 

    

     

     

     

     

    
 

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1

    

    PROMOTER
      AND PROMOTER GROUP

    

    PROMOTERS

    

    
      	
              Name

            	
              Number
                of Share

            	
              Percentage

            
	
              SMC
                Global Securities Ltd.

            	
              970000

            	
              9.70

            
	
              SMC
                Share Brokers Ltd.

            	
              970000

            	
              9.70

            
	
              Ajay
                Garg

            	
              150000

            	
              1.50

            

    

     

     

    
 

    PROMOTER
      GROUP

    

    
      	
              Name

            	
              Number
                of Share

            	
              Percentage

            
	
              Jai
                Ambey Share Broking Ltd.

            	
              970000

            	
              9.70

            
	
              MVR
                Share Trading (P) Ltd.

            	
              960000

            	
              9.60

            
	
              A
                To Z Consultants (P) Ltd.

            	
              725000

            	
              7.25

            
	
              A
                To Z Venture Capitals Ltd.

            	
              725000

            	
              7.25

            
	
              Rolex
                Finvest (P) Ltd.

            	
              725000

            	
              7.25

            
	
              Zee
                Datatline (P) Ltd.

            	
              725000

            	
              7.25

            
	
              Anurag
                Bansal

            	
              150000

            	
              1.50

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2

    

    COMPANY
      AND SAM GROUP COMPANIES

    

    
      	
              S.
                No.

            	
              Name
                of Company

            	
              Status

            	
              Activity

            
	 	 	 	 
	
              1.

               

               

               

               

               

               

               

               

               

              2.

               

               

               

              a)

               

               

              b)

               

               

              c)

            	
              SAM
                Global Securities Limited

               

               

               

               

               

               

               

               

               

              SAM
                Global Securities Limited Group Companies

               

               

              Pulin
                Investment Private Limited

               

               

              Abhichhaya
                Investment Private Limited

               

               

              Nexgen
                Capitals Limited

            	
              ·  Registered
                as Member with BSE for Capital Market

              ·  Registered
                as Member with BSE as trading and clearing member in F&O.

              ·  Registered
                as Depository Participant with the Central Depository Services (India)
                Ltd.

               

               

               

               

               

              Investment
                Company

               

               

               

              Investment
                Company

               

               

               

               

              Category-I
                Merchant Banker

            	
              ·  Trading/
                Broking in:

              -
                Capital Market Segment

              -
                Future & Option Market Segment

              ·  Clearing
                member (F & O)

              ·  Providing
                depository participant services

               

               

               

               

               

              Investment

               

               

               

              Investment

               

               

               

               

              Merchant
                Banking Activities

               

               

               

               

               

               

               

               

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    SCHEDULE
      3

    

    KEY
      MANAGERIAL PERSONNEL

    

    
      	
              S.
                No.

            	
              Name

            	
              Designation

            	
              Experience

            	
              Profile
                and their responsibilities

            
	
              1.

            	
              MR.
                AJAY GARG

            	
              Director
                SAM Global Securities Ltd.

            	
              11

            	
              Mr.
                Ajay Garg aged about 33-years is an Associate member of the Institute
                of
                Chartered Accountants of India (ICAI). He has experience of more
                than 11-years in stock broking industry as a director. He is managing
                and supervising business development, risk management, technological,
                development
                and administration of the Company.

            
	
              2.

            	
              MR.
                ANURAG BANSAL

            	
              Director
                (SAM Global Securities Ltd.)

            	
              10

            	
              Mr.
                Anurag Bansal aged about 32-years is a fellow member of the Institute
                of
                Chartered Accountants of India (ICAI). He is also a member of Institute
                of
                Cost and Works Accountants of India. He has more than 10-years of
                experience in stock broking industry and managing and supervising
                the
                substantial affairs of the Company.

            
	
              3.

               

            	
              MR.
                KULDEEP SINGH

            	
              Vice
                President-Technology

            	
              13

            	
              Mr.
                Kuldeep Singh aged about 35 years is a Graduate from Delhi University,
                CCNA, CNE and has done diploma in Computers. He has wide and rich
                experience of more than 13 years in Information Technology and networking
                in the securities market. He is head of the system and IT department
                of
                the Company.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    SCHEDULE
      4

    

    SHAREHOLDING
      STRUCTURE OF COMPANY AND SAM GROUP COMPANIES

    

    SAM
      GLOBAL SECURITIES LIMITED

    

    
      	
              Name

            	
              Number
                of

            	
              Face
                value

            	
              Amt.
                Paid

            	
              %
                of total

            
	
               

            	
              shresheld

            	
              per
                shares (Rs)

            	
              (Rs.
                In lakhs)

            	
               

            
	
              Promoters

            	
               

            	
               

            	
               

            	
               

            
	
              SMC
                Global Securities Ltd.

            	
                        970,000

            	
              10

            	
                   9,700,000.00

            	
              8.25

            
	
              SMC
                Share Brokers Ltd.

            	
                        970,000

            	
              10

            	
                   9,700,000.00

            	
              8.25

            
	
              Jai
                Ambe Share Broking Ltd.

            	
                        970,000

            	
              10

            	
                   9,700,000.00

            	
              8.25

            
	
              MVR
                Share Trading (P) Ltd.

            	
                        960,000

            	
              10

            	
                   9,600,000.00

            	
              8.17

            
	
              ATOZ
                Consultants (P) Ltd.

            	
                        725,000

            	
              10

            	
                   7,250,000.00

            	
              6.17

            
	
              ATOZ
                Venture Capital Ltd.

            	
                        725,000

            	
              10

            	
                   7,250,000.00

            	
              6.17

            
	
              Rolex
                Finvst (P)  Ltd.

            	
                        725,000

            	
              10

            	
                   7,250,000.00

            	
              6.17

            
	
              Zee
                Dataline (P) Ltd.

            	
                        725,000

            	
              10

            	
                   7,250,000.00

            	
              6.17

            
	
              Mr.
                Anurag Bansal

            	
                        150,000

            	
              10

            	
                   1,500,000.00

            	
              1.28

            
	
              Mr.
                Ajay Gupta

            	
                        150,000

            	
              10

            	
                   1,500,000.00

            	
              1.28

            
	
              Millennium
                India Acquistion Company Inc

            	
                      1,750,891

            	
              10/-

            	
                 17,508,910.00

            	
              14.90

            
	
              Others

            	
                      2,930,057

            	
              10

            	
                 29,300,570.00

            	
              24.93

            
	
              TOTAL

            	
                    11,750,948

            	
              10

            	
               117,509,480.00

            	
                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

            	
              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

        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      5

    

    AMENDED
      ARTICLES OF ASSOCIATION

    

    [To
      be agreed and attached separately in a form acceptable to the
      Investor]

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    

    

    

    
      
        Strictly
          Private & Confidential

        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    SCHEDULE
      6

    

    SPECIFIED
      MATTERS

    

    The
      Specified Matters listed below shall apply to each SAM Group Company mutatis
      mutandis.

     

    
      	
              a.  

            	
              Any
                amendment or change of the rights, preferences, privileges or powers
                of,
                or the restrictions provided for the benefit of the holders of any
                class
                of shares;

            

    

     

    
      	
              b.  

            	
              Till
                the expiry of 2 (two) years from the Completion Date or till the
                Company
                lists its Shares on the Bombay Stock Exchange or the National Stock
                Exchange, whichever is later, any action that authorizes, creates
                or
                issues shares including rights issue of any class or series of shares
                and
                the valuation in respect of all fresh issues, buy backs, splits,
                issuance
                of convertible debt/instruments or Securities, bonuses, debt restructuring
                involving conversion into equity, redemption of preference shares
                etc and
                modification of the capital
                structure;

            

    

     

    
      	
              c.  

            	
              Any
                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 Group Companies or Group Companies 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 that budgeted for in the annual
                business plan (including a revised annual business plan) that is
                approved
                by the Board of Directors;

            

    

     

    
      	
              d.  

            	
              Any
                merger, acquisition or consolidation which does not fall under point
                (e)
                or effects the paid-up capital of the
                company;

            

    

     

    
      	
              e.  

            	
              Any
                acquisition of existing entity or business from any third party in
                financial services (broking, insurance, forex, commodities) exceeding
                INR
                41 million and the proposed merger with  SAC Global Securities
                Limited;

            

    

     

    
      	
              f.  

            	
              Any
                transfer of Securities held by the Promoters or the Company otherwise
                than
                as permitted under this Agreement;

            

    

     

    
      	
              g.  

            	
              Declaration
                of dividend;

            

    

     

    
      	
              h.  

            	
              Redemption
                of any class or series of Securities otherwise than on the terms
                as
                previously agreed by the Investor;

            

    

     

    
      	
              i.  

            	
              Creation
                and modification of an employee stock option plan including the terms
                and
                conditions of their granting and vesting and/or the issuance of employee
                stock options;

            

    

     

    
      	
              j.  

            	
              Any
                compensation packages to Promoters or the Key Managerial Personnel,
                which
                is above market compensation
                packages;

            

    

     

    
      	
              k.  

            	
              Amendments
                or any proposal to amend the Memorandum or Articles of Association
                of the
                company;

            

    

     

    
      	
              l.  

            	
              Commencement
                of any new line of business or acquisition of shares (other than
                investment in IPOs, mutual funds and purchase of shares from secondary
                market in Ordinary Course of Business) or interest of a company or
                entity
                or firm, which is unrelated to the
                Business.

            

    

     

    
      	
              m.  

            	
              Changes
                to material accounting or tax policies or practices other than those
                required by Applicable Law;

            

    

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	
              n.  

            	
              Recommend,
                giving or renewing of security for or the guaranteeing of debts or
                obligations of the Company or SAM Group Companies or SAM Global Securities
                Limitedother than in the Ordinary Course of
                Business;

            

    

     

    
      	
              o.  

            	
              Any
                change in the financial year for preparation of audited
                accounts;

            

    

     

    
      	
              p.  

            	
              Any
                resolution for removal of statutory
                auditors;

            

    

     

    
      	
              q.  

            	
              Winding
                up and /or liquidation;

            

    

     

    
      	
              r.  

            	
              Any
                agreement, arrangement, transaction to sell or assignment of intellectual
                property rights including those relating to copyrights, trademarks,
                patents and designs belonging to the Company, other than in the normal
                course of business;

            

    

     

    
      	
              s.  

            	
              The
                accounting policy and policies for the dispensation of cash, payments,
                receivables;

            

    

     

    
      	
              t.  

            	
              Any
                commitment or agreement to do any of the
                foregoing.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    SCHEDULE
      7

    

    DEED
      OF ADHERENCE

     

    THIS
      DEED
      OF ADHERENCE ("Deed"), dated  ̃
      day of  ̃ 200 ̃
      by and among
      (1)  ̃ a
      company incorporated and registered under the laws of  ̃ and
      having its
      registered office at  ̃
      ("Covenanter"); and (2) MILLENNIUM INDIA ACQUISITION COMPANY INC.
a company organised under the laws of the State of
      United States of
      America and having its office address at 330 East, 38th Street, suite 46C,
      New
      York, NY 10016, USA (“Investor”) (3) SAM GLOBAL SECURITIES
      LIMITED, a company incorporated under the Indian Companies Act, 1956,
      having its registered office 17, Netaji Subhash Marg, Darya Ganj, New Delhi
      (“Company”), (4) MR. AJAY GARG (“Promoter No.
      1”), son of late Mr. Ramanand Garg, Indian inhabitant, residing at
      C-346, Saraswati Vihar, Delhi - 110088; (5) SMC GLOBAL SECURITIES
      LIMITED (“Promoter No. 2”), a company
      incorporated under the Indian Companies Act, 1956, having its registered office
      17, Netaji Subhash Marg, Darya Ganj, New Delhi;  (6) SMC SHARE
      BROKERS LIMITED (“Promoter No. 3”), a
      company incorporated under the Indian Companies Act, 1956, having its registered
      office at 17, Netaji Subhash Marg, Darya Ganj, New Delhi;  (7)Person
      and entities listed at Schedule 1 of the Shareholders
      Agreement (“Promoter Group”) represented jointly by
      Mr. S.C. Aggarwal and Mr. M. C. Gupta.

     

    
      	
              In
                this Deed, the Investor, Promoter No.1, Promoter No. 2, Promoter
                No. 3,
                Promoter Group and Company are collectively referred to as the
                "Existing Parties".

            

    

    

    
      	
              THIS
                DEED IS SUPPLEMENTAL to the Shareholders Agreement dated as of Ä
                2007
                among the Existing Parties attached as Annexure "1" to this Deed
                (the "Shareholders
                Agreement").

            

    

     

    W
      H E R E A S:

    

    Pursuant
      to the Shareholders Agreement, the Covenanter and the Existing Parties desire
      to
      enter into this Deed of Adherence to provide that the provisions of the
      Shareholders Agreement would be binding on the Covenanter.

    

    NOW
      THEREFORE, the parties hereto hereby agree as follows:

    

    
      	
              1.         
                  

            	
              The
                Covenanter hereby confirms that a copy of the Shareholders Agreement
                has
                been made available to the
                Covenanter.

            

    

    

    
      	
              2.            

            	
              The
                Covenanter shall observe, perform and be bound by the provisions
                of the
                Shareholders Agreement with effect from the date on which the Covenanter
                is registered as a member of
                Company.

            

    

    

    
      	
              3.            

            	
              The
                Covenanter hereby covenants that it shall not undertake any act of
                omission or commission, which is or may be contrary to the provisions
                of
                the Shareholders Agreement, prejudicial to any of the rights or interests
                of the Existing Parties pursuant to the terms of the Shareholders
                Agreement or which may impede or render ineffective any action undertaken
                by any of the Existing Parties in exercise of its rights under the
                Shareholders Agreement.

            

    

    

    
      	
              4.            

            	
              The
                parties hereto agree that the obligations imposed on the Covenanter
                hereunder are special, unique and of an extraordinary character,
                and that,
                in the event of breach by the Covenanter damages would not be an
                adequate
                remedy and therefore the Existing Parties as the case may be, shall
                be
                entitled to specific performance and injunctive and other equitable
                relief
                in addition to any other remedy to which it may be entitled, at law
                or in
                equity; and the parties hereto further agree to waive any requirement
                for
                the securing or posting of any bond in connection with the obtaining
                of
                any such injunctive or other equitable relief. The remedy set forth
                in
                this Clause is cumulative and shall in no way limit any other remedy
                available under law, in equity or pursuant
                hereto.

            

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    
      	
              5.            

            	
              The
                Deed of Adherence shall be governed in all respects by the laws of
                India
                and all issues relating to disputes arising from the terms of this
                Deed of
                Adherence and resolution thereto shall be governed by the provisions
                of
                the Shareholders Agreement in particular paragraphs Clauses 12 and
                13 and
                same shall deemed to be incorporated into this Deed of Adherence
                by
                reference.

            

    

     

     

    Millennium
      India Acquisition Company
      Inc.                                                        SAM
      Global Securities Limited

     

     

    _______________________________                                                             _____________________________

    Name:                                                                                                  Name:  Mr.
      Ajay Garg

    Title:                                                                                            Title:
      Director

     

     

    

     

     

    _______________________________

    Name:
      Mr.
      Ajay Garg

     

     

    

     

     

    SMC
      Global Securities Limited

     

     

    _______________________________

    Name:
      Mr.
      S.C.Aggarwal

    Title:
      Directors

     

     

    

     

     

    SMC
      Share
      Brokers Limited

     

     

    _______________________________

    Name:
      Mr.
      M.C. Gupta

    Title:
      Directors

     

     

    

     

    

     

    _______________________________

     

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

     

     

    
      
        Strictly
          Private & Confidential

        
        

      

      
        39CHMS EX10.10

    Exhibit
      10.10

    

    INDEMNIFICATION
      AGREEMENT

    

    AGREEMENT,
      effective as of September 20, 2006, between China Mobility Solutions, Inc.,
      a
      Florida corporation (the “Company”), and [insert name of Officer and/or
      Director] (the “Indemnitee”)

     

    WHEREAS,
      it is essential to the Company to retain and attract as directors and officers
      the most capable persons available;

     

    WHEREAS,
      Indemnitee is a director or officer of the Company;

     

    WHEREAS,
      both the Company and Indemnitee recognize the increased risk of litigation
      and
      other claims being asserted against directors and officers of public companies
      in today’s environment;

     

    WHEREAS,
      Article V and Article VII of the Bylaws off the Company require the Company
      to
      indemnify and advance expenses to its directors and officers to the fullest
      extent permitted by law and the Indemnitee has been serving and continues to
      serve as a director or officer of the Company in part in reliance on such
      Bylaws;

     

    WHEREAS,
      the Bylaws of the Company and the Florida Revised Statutes each provide that
      the
      indemnification provided herein shall not be exclusive;

     

    WHEREAS,
      in recognition of Indemnitee’s need for substantial protection against personal
      liability in order to enhance Indemnitee’s continued service to the Company in
      as effective manner, the Company wishes to provide in this Agreement for the
      indemnification of and the advancing of expenses to Indemnitee to the fullest
      extent (whether partial or complete) permitted by law and as set forth in this
      Agreement, and, to the extent insurance is maintained, for the continued
      coverage of Indemnitee under the Company’s directors’ and officers’ liability
      insurance policies;

     

    NOW,
      THEREFORE, in consideration of the premises and of Indemnitee continuing to
      serve the Company directly or, at its request, another enterprise, and intending
      to be legally bound hereby, the parties hereto agree as follows:

     

    1.
      Certain Definitions:

     

    (a)
      Change in Control: shall be deemed to have occurred if (i) any “person” (as such
      term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
      1934,
      as amended), other than a trustee or other fiduciary holding securities under
      an
      employee benefit plan of the Company or a corporation owned directly or
      indirectly by the stockholders of the Company in substantially the same
      proportions as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
      indirectly, of securities of the Company representing 20% or more off the total
      voting power represented by the Company’s then outstanding Voting Securities, or
      (ii) during any period of two consecutive years, individuals who at the
      beginning of such period constitute the Board of Directors of the Company and
      any new director whose election by the Board of. Directors or nomination for
      election by the Company’s stockholders was approved by a vote of at least
      two-thirds (2/3) of the directors then still in office who either were directors
      at the beginning of the period or whose election or nomination for election
      was
      previously so approved, cease for any reason to constitute a majority thereof,
      or (iii) the stockholders of the Company approve a merger or consolidation
      of
      the Company with any other corporation, other than a merger or consolidation
      which would result in the Voting Securities of the Company outstanding
      immediately prior thereto continuing to represent (either by remaining
      outstanding or by being converted into Voting Securities of the surviving
      entity) at least 80% of the total voting power represented by the Voting
      Securities of the Company or such surviving entity outstanding immediately
      after
      such merger or consolidation, or the stockholders of the Company approve a
      plan
      of complete liquidation of the Company or an agreement for the sale or
      disposition by the Company of ‘(in one transaction or a series of transactions)
      all or substantially all the Company’s assets.

     

    (b)
      Claim: any threatened, pending or completed action, suit or proceeding, or
      arty
      inquiry or investigation, whether instituted by the Company or any other party,
      that Indemnitee in good faith believes might lead to the institution of any
      such
      action, suit or proceeding, whether civil, criminal, administrative,
      investigative or other.

     

    (c)
      Expenses: include attorneys’ fees and all other costs, expenses and obligations
      paid or incurred in connection with investigating, defending, being a witness
      in
      or participating in (including on appeal), or preparing to defend, be a witness
      in or participate in, any Claim relating to any Indemnifiable
      Event.

     

    (d)
      Indemnifiable Event: any event or occurrence related to the fact that Indemnitee
      is or was a director, officer, employee, agent or fiduciary of the Company,
      or
      is or was serving at the request of the Company as a director, officer,
      employee, trustee, agent or fiduciary of another corporation, partnership,
      joint
      venture, employee benefit plan, trust or other enterprise, or by reason of
      anything done or not done by Indemnitee in any such capacity.

     

    (e)
      Independent Legal Counsel: an attorney or firm of attorneys, selected in
      accordance with the provisions of Section 3, who shall not have otherwise
      performed services for the Company or Indemnitee within the last five years
      (other than with respect to matters concerning the tights of Indemnitee under
      this Agreement, or of other indemnitees under similar indemnity
      agreements).

     

    (f)
      Potential Change in Control: shall be deemed to have occurred if (i) the Company
      enters into an agreement, the consummation. of which would result in the
      occurrence of a Change in Control; (ii) any person (including the Company)
      publicly announces an intention to take or to consider taking actions which
      if
      consummated would constitute a Change in Control; (iii) any person, other than
      a
      trustee or other fiduciary holding securities under an employee benefit plan
      of
      the Company or a corporation owned, directly or indirectly, by the stockholders
      of the Company in substantially the same proportions as their ownership of
      stock
      of the Company, who is or becomes the beneficial owner, directly or indirectly,
      of securities of the Company representing 9.5% or more of the combined voting
      power of the Company’s then outstanding Voting Securities, increases his
      beneficial ownership of such securities by five percentage points (5%) or more
      over the percentage so owned by such person; or (iv) the Board adopts a
      resolution to the effect that, for purposes of this Agreement, a Potential
      Change in Control has occurred.

     

    (g)
      Reviewing Party: any appropriate person or body consisting of a member or
      members of the Company’s Board of Directors or any other person or body
      appointed by the Board who is not a party to the particular Claim for which
      Indemnitee is seeking indemnification, or Independent Legal
      Counsel.

     

    (h)
      Voting Securities: any securities of the Company which vote generally in the
      election of directors.

     

    2.
      Basic Indemnification Arrangement.

     

    (a)
      In
      the event lndemnitee was, is or becomes a party to or witness or other
      participant in, or is threatened to be made a party to or witness or other
      participant in, a Claim by mason of (or arising in part out of) an Indemnifiable
      Event, the Company shall indemnify Indemnitee to the fullest extent permitted
      by
      law as soon as practicable but in any event no later than thirty days after
      written demand is presented to the Company, against any and all Expenses,
      judgments, fines, penalties and amounts paid in settlement (including all
      interest, assessments and other charges paid or payable in connection with
      or in
      respect of such Expenses, judgments, fines, penalties or amounts paid in
      settlement) arising from or relating to such Claim. If so requested by
      Indemnitee, the Company shall advance (within two business days off such.
      request) any and all Expenses to Indemnitee (an “Expense Advance”).

     

    (b)
      Notwithstanding the foregoing, (i) the obligations of the Company under Section
      2(a) shall be subject to the condition that the Reviewing Party shall not have
      determined (in a written opinion, in any case in which the Independent Legal
      Counsel referred to in Section 3 hereof is involved) that Indemnitee would
      not
      be permitted to be indemnified under applicable law, and (ii) the obligation
      of
      the Company to make an Expense Advance pursuant to Section 2(a) shall be subject
      to the condition that, if, when and to the extent that the Reviewing Party
      determines that Indemnitee would not be permitted to be so indemnified under
      applicable law, the Company shall be entitled to be reimbursed by Indemnitee
      (who hereby agrees to reimburse the Company) for all such amounts theretofore
      paid; provided, however, that if Indemnitee has commenced or thereafter
      commences legal proceedings in a court of competent jurisdiction to secure
      a
      determination that Indemnitee should be indemnified under applicable law, any
      determination made by the Reviewing Party that Indemnitee would not be permitted
      to be indemnified under applicable law shall not be binding and Indemnitee
      shall
      not be required to reimburse the Company for any Expense Advance until a final
      judicial determination is made with respect thereto (as to which all rights
      of
      appeal therefrom, have been exhausted or lapsed). If there has not been a Change
      in Control, the Reviewing Party shall be selected by the Board of Directors,
      and
      if there has been such a Change in Control (other than a Change in Control
      which, has been approved by a majority of the Company’s Board of Directors who
      were directors immediately prior to such Change in Control), the Reviewing
      Party
      shall be the Independent Legal Counsel referred to in Section 3 hereof. If
      there
      has been no determination by the Reviewing Party or if the Reviewing Party
      determines that Indemnitee substantively would not be permitted to be
      indemnified in whole or in part under applicable law, Indemnitee shall have
      the
      right to commence litigation in any court in the State of Florida having subject
      matter jurisdiction thereof and in which venue is proper seeking an initial
      determination by the court or challenging any such determination by the
      Reviewing Party or any aspect thereof, including the legal or factual bases
      therefor, and the Company hereby consents to service of process and to appear
      in
      any such, proceeding. Any determination by the Reviewing Party otherwise shall
      be conclusive and binding on the Company and Indemnitee.

     

    3.
      Change
      in Control. The Company agrees that if there is a Change in Control of the
      Company (other than a Change in Control which has been approved by a majority
      of
      the Company’s Board of Directors who were directors immediately prior to such
      Change in Control) then with respect to all matters thereafter arising
      concerning the rights of Indemnitee to indemnity payments and Expense Advances
      under this Agreement or any other agreement or Company Bylaw now or hereafter
      in
      effect relating to Claims for Indemnifiable Events, the Company shall seek
      legal
      advice only from Independent Legal Counsel selected by Indemnitee and approved
      by the Company (which approval shall not be unreasonably withheld). Such
      counsel, among other things, shall render its written opinion to the Company
      and
      Indemnitee as to whether and to what extent the Indemnitee would be permitted
      to
      be indemnified under applicable law. The Company agrees to pay the reasonable
      fees of the Independent Legal Counsel referred to above and to indemnify fully
      such counsel against any and all expenses (including attorneys’ fees), claims,
      liabilities and damages arising out of or relating to this Agreement or its
      engagement pursuant hereto.

     

    4.
      Establishment of Trust. In the event of a Potential Change in Control, the
      Company shall, upon written request by Indemnitee, create a trust for the
      benefit of Indemnitee and from time to time upon written request of Indemnitee
      shall fund such trust in an amount sufficient to satisfy any and all Expenses
      reasonably anticipated at the time of each such request to be incurred in
      connection with investigating, preparing for and defending any Claim relating
      to
      an Indemnifiable Event, and any and all judgments, fines, penalties and
      settlement amounts of any and all Claims relating to an Indemnifiable Event
      from
      time to time actually paid or claimed, reasonably anticipated or proposed to
      be
      paid. The amount or amounts to be deposited in the trust pursuant to the
      foregoing funding obligation shall be determined by the Reviewing Party, in
      any
      case in which the Independent Legal Counsel referred to above is involved.
      The
      terms of the trust shall provide that (i) the trust shall not be revoked or
      the
      principal thereof invaded, without the written consent of the Indemnitee, (ii)
      the trustee shall advance, within two business days of a request by the
      Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee hereby
      agrees to reimburse the trust under the circumstances under which the Indemnitee
      would be required to reimburse the Company under Section 2(b) of this
      Agreement), (iii) the trust shall continue to be funded by the Company in
      accordance with the funding obligation set forth above, (iv) the trustee shall
      promptly pay to Indemnitee all amounts for which lndemnitee shall be entitled
      to
      indemnification pursuant to this Agreement of otherwise, and (v) all unexpended
      funds in such trust shall revert to the Company upon a final determination
      by
      the Reviewing Party or a court of competent jurisdiction, as the case may be,
      that Indemnitee has been fully indemnified under the terms of this Agreement
      The
      trustee shall be chosen by Indemnitee. Nothing in, this Section 4 shall relieve
      the Company of any of its obligations under this Agreement.

     

    5.
      Indemnification for Additional Expenses. The Company shall indemnify Indemnitee
      against any and all expenses (including attorneys’ fees) and, if requested by
      Indemnitee, shall (within two business days of such request) advance such
      expenses to Indemnitee, which are incurred by Indemnitee in connection with
      any
      action brought by Indemnitee for (i) indemnification or advance payment of
      Expenses by the Company under this Agreement or any other agreement or Company
      Bylaw now or hereafter in effect relating to Claims for Indemnifiable Events
      and/or (ii) recovery under any directors’ and officers’ liability insurance
      policies maintained by the Company, regardless of whether Indemnitee ultimately
      is determined to be entitled to such indemnification, advance expense payment
      or
      insurance recovery, as the case may be.

     

    6.
      Partial Indemnity, Etc. If Indemnitee is entitled under any provision of this
      Agreement to indemnification by the Company for some or a portion of the
      Expenses, judgments, fines, penalties and amounts paid in settlement arising
      from or relating to a Claim but not, however, for all of the total amount
      thereof, the Company shall nevertheless indemnify Indemnitee for the portion
      thereof to which Indemnitee is entitled. Moreover, notwithstanding any other
      provision of this Agreement, to the extent that Indemnitee has been successful
      on the merits or otherwise in defense off any or all Claims relating in whole
      or
      in part to an Indemnifiable Event or in defense of any issue or matter therein,
      including dismissal without prejudice, Indemnitee shall be indemnified against
      all Expenses incurred in connection therewith.

     

    7.
      Burden
      of Proof in connection with any determination by the Reviewing Party or
      otherwise as to whether Indemnitee is entitled to be indemnified hereunder
      the
      burden of proof shall be on the Company to establish that Indemnitee is not
      so
      entitled.

     

    8.
      No
      Presumptions. For purposes of this Agreement, the termination of any claim,
      action, suit or proceeding, by judgment, order, settlement (whether with. or
      without court approval) or conviction, or upon a plea of nolo contendere, or
      its
      equivalent, shall not create a presumption that Indemnitee did not meet any
      particular standard of conduct or have any particular belief or that a court
      has
      determined that indemnification is not permitted by applicable law. In.
      addition, neither the failure of the Reviewing Party to have made a
      determination as to whether Indemnitee has met any particular standard of
      conduct or had any particular belief, nor an actual determination by the
      Reviewing Party that Indemnitee has not met such standard of conduct or did
      not
      have such. belief, prior to the commencement of legal proceedings by Indemnitee
      to secure a judicial determination that Indemnitee should be indemnified under
      applicable law shall be a defense to Indemnitee’s claim or create a presumption
      that Indemnitee has not met any particular standard of conduct or did not have
      any particular belief.

     

    9.
      Nonexclusivity, Etc. The rights of the Indemnitee hereunder shall be in addition
      to any other rights Indemnitee may have under the Company’s Bylaws or the
      Florida Revised Statutes or otherwise. To the extent that a change in the
      Florida Revised Statutes (whether by statute or judicial decision) permits
      greater indemnification by agreement than would be afforded currently under
      the
      Company’s Bylaws and this Agreement, it is the intent of the parties hereto that
      Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
      such change.

     

    10.
      Liability Insurance. To the extent the Company maintains an insurance policy
      or
      policies providing directors’ and officers’ liability insurance, Indemnitee
      shall be covered by such policy or policies, in accordance with its or their
      terms, to the maximum extent of the coverage available for any Company director
      or officer.

     

    11.
      Period of Limitations. No legal action shall be brought and no cause of action
      shall be asserted by or in the right of the Company against Indemnitee,
      Indemnitee’s spouse, heirs, executors or personal or legal, representatives
      after the expiration of two years from the date of accrual of such cause of
      action, and any claim or cause of action of the Company shall be extinguished
      and deemed released unless asserted by the timely filing of a legal action
      within such two-year period; provided, however, that if any shorter period
      of
      limitations is otherwise applicable to any such cause of action such shorter
      period shall govern.

     

    12.
      Amendments, Etc. No supplement, modification or amendment of this Agreement
      shall be binding unless executed in writing by both of the parties hereto.
      No
      waiver of any of the provisions of this Agreement shall be deemed or shall
      constitute a waiver of any other provisions hereof (whether or not similar)
      nor
      shall such waiver constitute a continuing waiver.

     

    13.
      Subrogation. In the event of payment under this Agreement, the Company shall
      be
      subrogated to the extent of such payment to all of the rights of recovery of
      Indemnitee, who shall execute all papers required and shall. do everything
      that
      may be necessary to secure such rights, including the execution of such
      documents necessary to enable the Company effectively to bring suit to enforce
      such rights.

     

    14.
      No
      Duplication of Payments. The Company shall not be liable under this Agreement
      to
      make any payment in connection with any Claim made against lndemnitee to the
      extent Indemnitee has otherwise actually received payment (under any insurance
      policy, Bylaw or otherwise) of the amounts otherwise indemnifiable
      hereunder.

     

    15.
      Binding Effect, Etc. This Agreement shall be binding upon and inure to the
      benefit of and be enforceable by the parties hereto and their respective
      successors, assigns, including any direct or indirect successor by purchase,
      merger, consolidation or otherwise to all or substantially all of the business
      and/or assets off the Company, spouses, heirs, including any direct or indirect
      successor by purchase, merger, consolidation or otherwise to all or
      substantially all of the business and/or assets of the Company, spouses, heirs,
      executors and personal and legal representatives. This Agreement shall continue
      in. effect regardless of whether Indemnitee continues to serve as an officer
      or
      director of the Company or of any other enterprise at the Company’s
      request.

     

    16.
      Severability. The provisions of this Agreement shall be severable in the event
      that any of the provisions hereof (including any provision within a single
      section, paragraph or sentence) are held by a :court of competent jurisdiction
      to be invalid, void or otherwise unenforceable in any respect, and the validity
      and enforceability of any such provision in every other respect and of the
      remaining provisions hereof shall not be in any way impaired and shall remain
      enforceable to the fullest extent permitted by law.

     

    17.
      Governing Law. This Agreement shall be governed by and construed and enforced
      in
      accordance with the law’s of the State of Florida applicable to contracts made
      and to be performed in such state without giving effect to the principles of
      conflicts of laws.

     

     

    

      IN
        WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
        ____
        day of September, 2006

       

      

       

      CHINA
        MOBILITY SOLUTIONS, INC.

       

       

      By:__________________

       

      Name:________________

       

      Title:_________________

       

      
 

       

      INDEMNITEE

       

      By:____________________

       

      Name:__________________

       

      Title:___________________

       

      

       

      INDEMNITEE

       

      
        By:____________________

         

        Name:__________________

         

        Title:___________________

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