Document:

CITIUS
      POWER LIMITED

     

    SHARE
      SUBSCRIPTION AGREEMENT

     

    March
      1, 2008

     

    
      
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          i -

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    CITIUS
      POWER LIMITED

     

    SHARE
      SUBSCRIPTION AGREEMENT

     

    This
      agreement (the “Agreement”)
      is
      entered into as of March 1, 2008 (the “Effective
      Date”)
      by and
      between:

     

    
      	 	
              1.

            	
              Citius
                Power Limited,
                a
                limited liability company incorporated under the laws of the Republic
                of
                Mauritius with a Category 1 Global Business Licence and having its
                registered office at c/o Matco Limited, Suite 137 2nd
                Floor, Harbour Front Building, President John Kennedy Street, Port
                Louis,
                Mauritius (the “Company”);

            

    

     

    
      	 	
              2.

            	
              Phoenix
                India Acquisition Corp.,
                a
                Delaware corporation having its registered office at 590 Madison
                Avenue,
                6th Floor, New York, NY 10022, USA (“PIAC,”
                which expression shall, unless inconsistent with the subject or context,
                be deemed to include its successors and permitted assigns);
                and

            

    

     

    
      	 	
              3.

            	
              The
                persons named in Schedule I hereto (hereinafter referred to collectively
                as the “Promoters”
                and individually as a “Promoter”),
                indirectly holding Equity Shares in the Company through its wholly
                owned
                subsidiaries set forth opposite each such Promoter’s name in Schedule I
                hereto.

            

    

     

    The
      Company, PIAC and the Promoters are hereinafter referred to individually as
      a
“Party”
and
      collectively as the “Parties”.

     

    Unless
      the context otherwise requires, all capitalized terms used but not otherwise
      defined herein shall have the meanings set forth in Schedule II. Other terms
      may
      be defined elsewhere in the text of this Agreement and, unless otherwise
      indicated, shall have such meaning throughout this Agreement.

     

    WHEREAS,

     

    
      	 	
              A.

            	
              The
                Company desires to allot, issue and deliver to PIAC, and PIAC desires
                to
                subscribe to 4,500,000 (Four Million Five Hundred Only) Convertible
                Preference Shares; and

            

    

     

    
      	 	
              B.

            	
              The
                Parties hereto desire to enter into this Agreement and the Shareholders’
                Agreement to record their respective representations, warranties,
                covenants and agreements with respect to the transactions contemplated
                hereby, as set forth herein.

            

    

     

    NOW,
      THEREFORE,
      in
      consideration of the representations, promises and mutual covenants and
      agreements set forth herein, the Parties agree as follows:

    
       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    
      	1.	
              Authorization,
                Allotment And Issuance Of Convertible Preference
                Shares

            

    

     

    Amendment
      of Constitutional Documents; Authorization of Issuance of Convertible Preference
      Shares  

     

    The
      Company and the Group Company (to the extent required) will, before Closing,
      adopt the restated Memorandum and Articles of Association to make such changes
      as are necessary or appropriate to carry out the provisions of this Agreement
      and to incorporate the provisions of the Shareholders’ Agreement, in form and
      substance satisfactory to PIAC. The Company will, before Closing, authorize
      the
      issuance to PIAC of 4,500,000 (Four Million Five Hundred Thousand Only)
      Convertible Preference Shares. 

     

    Allotment
      and Issuance of Convertible Preference Shares

     

    Subject
      to the terms and conditions of this Agreement, PIAC agrees to subscribe to,
      and
      the Company agrees to allot, issue and deliver to PIAC, 4,500,000 (Four Million
      Five Hundred Thousand Only) Convertible Preference Shares at the subscription
      price of USD 10 per Convertible Preference Share
      and thus
      an aggregate subscription price of USD 45,000,000 (the “Aggregate
      Subscription Price”).

     

    
      	2.	
              Closing
                of the Convertible Preference Shares;
                Use of Proceeds

            

    

     

    Closing

     

    The
      Company shall allot, issue and deliver 4,500,000 (Four Million Five Hundred
      Only) Preference Shares to PIAC at closing (“Closing”).
      Closing shall take place at a time and place mutually agreed between the Parties
      on a date to be specified by the Company and PIAC, which date shall be no later
      than two (2) Business Days after the satisfaction or waiver (subject to
      Applicable Law) of the latest to occur of the conditions set forth in Sections
      4
      and 5 (other than those conditions that by their nature are to be satisfied
      or
      waived at Closing), unless extended by mutual agreement of the Company and
      PIAC. 

     

    Delivery  

     

    At
      Closing, the Company shall deliver to PIAC a share certificate duly stamped
      and
      registered in PIAC’s name representing the number of Convertible Preference
      Shares that PIAC is subscribing at Closing against payment of the Aggregate
      Subscription Price, by wire transfer in accordance with the Company’s
      instructions, which instructions the Company shall deliver to PIAC not less
      than
      five (5) Business Days prior to Closing. 

     

    Within
      five (5) Business Days of Closing, the Company shall deliver to PIAC a certified
      copy of all relevant filings which shall have been made pursuant to Applicable
      Law by the Company in relation to the Convertible Preference Shares that PIAC
      is
      subscribing at Closing. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Use
      of Proceeds  

     

    The
      Company will use the proceeds from Closing in the following manner:

     

    
      	 	
              (i)

            	
              retain
                USD 2,500,000 in its bank accounts in
                Mauritius;

            

    

     

    
      	 	
              (ii)

            	
              pay
                expenses, advisers’ fees and other costs incurred by the Company and its
                Affiliates in connection with the transactions contemplated by the
                Transaction Agreements, including previously contemplated asset
                acquisition and financing efforts, as disclosed in writing to
                PIAC;

            

    

     

    
      	 	
              (iii)

            	
              investing
                USD 42,500,000 in the Group Company in order that the Group Company
                shall
                acquire wind energy assets and develop new wind and other renewable
                energy
                generation facilities in return for which the Group Company shall issue
                16,955,375 equity shares of par
                value Rs. 10 at a premium of Rs. 90 and thus an issue price of Rs.
                100
                each to the Company, to be calculated with reference to the daily
                average
                exchange rate published in the Financial Times newspaper in
                London.

            

    

     

    The
      Company and each Promoter shall procure that the funds are utilized for
      acquisition of assets in accordance with the terms and conditions set out in
      this Agreement and the Shareholders’ Agreement and as may be agreed upon with
      PIAC. 

     

    
      	3.	
              Conversion
                of the Convertible Preference
                Shares

            

    

     

    Conversion 

     

    3.1 PIAC
      shall have the right to convert the Convertible Preference Shares, at its
      option, at any time after twenty four (24) months following Closing, if an
      IPO
      or other Liquidity Event has not taken place; provided however, the Convertible
      Preference Shares shall mandatorily convert into Equity Shares at the time
      of an
      IPO. 

     

    3.2 The
      Convertible Preference Shares owned by PIAC shall be convertible into Equity
      Shares in the ratio of 8.25 Equity Shares for every Convertible Preference
      Share. Accordingly, upon conversion of all of the Convertible Preference Shares
      in issue, PIAC will own 37,142,857 Equity Shares. At Closing the Equity
      Shareholders will own all outstanding Equity Shares aggregating to 20,000,000
      (Twenty Million Only) shares with a combined value of USD 20,000 (USD Twenty
      Thousand Only). After Closing, PIAC will own 65% of the Shares of the Company
      and the Equity Shareholders will own 35% of the Shares of the Company on a
      Fully
      Diluted Basis. This Section shall be without prejudice to the Promoters’ rights
      to subscribe to additional Equity Shares at par value pursuant to Schedule
      III
      of the Shareholders’ Agreement.

     

    3.3 The
      Promoters and the Company shall, on a best efforts basis, endeavour to achieve
      an IPO within twenty four (24) months of Closing on any recognised stock
      exchange, or other Liquidity Event, as may be mutually agreed upon by the
      Promoters and PIAC in light of prevailing market conditions and the state of
      the
      Company’s business and financial condition. The terms, timing and final pricing
      as well as the selection of the investment banker or merchant banker shall
      be
      subject to the approval of the Board of Directors of the Company. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	4.	
              Conditions
                to PIAC’s Obligations to Subscribe to the Convertible Preference
                Shares

            

    

     

    PIAC’s
      obligation to subscribe to the Convertible Preference Shares at Closing is
      subject to the satisfaction on or before Closing of the following conditions,
      unless waived in writing by PIAC:

     

    Representations
      and Warranties  

     

    The
      representations and warranties made by the Company and the Promoters in Section
      6 herein shall be true and correct when made and as at Closing (unless stated
      to
      relate to a specific earlier date, in which case such representations and
      warranties shall be true and correct as of such earlier date).

     

    Covenants  

     

    All
      covenants, agreements and conditions contained in the Transaction Agreements
      to
      be performed by the Company or the Promoters on or before Closing shall have
      been performed or complied with.

     

    Shareholders’
      Agreement  

     

    Each
      of
      the Company and the Promoters shall have duly stamped and executed and delivered
      the Shareholders’ Agreement and the same shall be in full force and effect and
      shall be legal, valid, binding and enforceable against the parties thereto
      in
      accordance with the terms thereof.

     

    Memorandum
      and Articles 

     

    The
      restated Memorandum and Articles, in
      form
      and substance satisfactory to PIAC,
      shall
      have been duly adopted by the Company and the Group Company, by all requisite
      Board and shareholder action, shall have been filed with the respective
      Registrar of Companies, shall be in full force and effect and all requisite
      approvals, consents and authorizations related thereto shall have been
      obtained.

     

    Ownership  

     

    At
      Closing, all of the outstanding Equity Shares and options, if any, shall be
      owned by the Equity Shareholders and all the outstanding Convertible Preference
      Shares shall be owned by PIAC.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Closing
      Deliverables 

     

    The
      Company shall have delivered to PIAC the following:

     

    
      	 	
              i.

            	
              duly
                executed copies of all Transaction Agreements (and any amendments
                thereto); 

            

    

     

    
      	 	
              ii.

            	
              appropriate
                corporate documents authorizing the allotment, issuance and delivery
                of
                the Convertible Preference Shares;

            

    

     

    
      	 	
              iii.

            	
              a
                certificate, dated as of Closing, certifying as to the incumbency
                and
                signatures of certain Directors and/or officers of the Company and
                a
                certificate from the Company, dated as of Closing, certifying as
                to the
                effectiveness of the restated Memorandum and Articles and Board and
                shareholders resolutions attached thereto, all of them required to
                be
                adopted and delivered in order to carry out the transactions contemplated
                by this Agreement and the other Transaction Agreements, including,
                without
                limitation, the authorization, allotment, issuance and delivery and
                execution of the Convertible Preference Shares, authorizations and
                execution of this Agreement and the other Transaction Agreements
                to which
                the Company is a party and appointment of the PIAC Directors (as
                defined
                in the Shareholders’ Agreement) to the Board in accordance with the
                Shareholders’ Agreement;

            

    

     

    
      	 	
              iv.

            	
              a
                certificate from an officer of the Company, dated as of Closing,
                certifying as to the accuracy of the representations and warranties
                of the
                Company herein and in the other Transaction Agreements at and as
                of
                Closing and as to the compliance of the Company with all agreements
                and
                conditions hereunder and under the other Transaction Agreements required
                to be performed or complied by at or prior to
                Closing;

            

    

     

    
      	 	
              v.

            	
              an
                opinion of counsel for the Company and the Promoters, in form and
                substance satisfactory to PIAC, addressing matters as are customarily
                addressed in transactions contemplated by the Transaction Agreements,
                including, without limitation, to the effect
                that:

            

    

     

    
      	 	
              a.

            	
              The
                Company has been duly incorporated and is validly existing as a
                corporation in good standing under the laws of the Republic of Mauritius,
                with full corporate power and authority to own or lease, as the case
                may
                be, and to operate its properties and conduct its business and to
                enter
                into and to perform its obligations under the Transaction
                Agreements;

            

    

     

    
      	 	
              b.

            	
              The
                Convertible Preference Shares have been duly authorized and, when
                issued
                and delivered in accordance with the terms of this Agreement, will
                be
                validly issued, fully paid and non-assessable, and the issuance of
                the
                Convertible Preference Shares will not be subject to any pre-emptive
                rights, rights of first refusal or similar rights, and, to the best
                of
                such Counsel’s knowledge, no options, warrants or other rights to
                purchase, agreements or other obligations to issue, or rights to
                convert
                any obligations into or exchange any securities for, shares of capital
                stock of the Company are
                outstanding;

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              c.

            	
              The
                Transaction Agreements have been duly authorized, executed and delivered
                by the Company and the Promoters and constitute legal, valid and
                binding
                obligations of the Company and the Promoters, enforceable against
                the
                Company and the Promoters in accordance with the terms thereunder
                except:
                (i) as limited by applicable bankruptcy, insolvency, reorganization,
                moratorium and other laws of general application affecting enforcement
                of
                creditors’ rights generally; and (ii) as limited by laws relating to the
                availability of specific performance, injunctive relief or other
                equitable
                remedies or by general principles of
                equity;

            

    

     

    
      	 	
              d.

            	
              The
                execution and delivery of the Transaction Agreements by the Company,
                the
                performance by the Company of its obligations pursuant to the Transaction
                Agreements, the consummation of the transactions contemplated by
                the
                Transaction Agreements and the allotment, issuance and delivery of
                the
                Convertible Preference Shares will not result in any violation of,
                or
                conflict with, or constitute a default under, the Articles or Memorandum,
                each as amended to date, or any Applicable Law or any agreement or
                other
                instrument binding upon the Company that is material to the Company;
                

            

    

     

    
      	 	
              e.

            	
              The
                execution and delivery of the Transaction Agreements by the Promoters
                and
                the performance by the Promoters of their obligations pursuant to
                the
                Transaction Agreements will not result in any violation of any Applicable
                Law; 

            

    

     

    
      	 	
              f.

            	
              The
                Shares outstanding prior to the issuance of the Convertible Preference
                Shares have been duly authorized and are validly issued, fully paid
                and
                non-assessable;

            

    

     

    
      	 	
              g.

            	
              There
                is no pending or, to the best of such counsel’s knowledge, threatened
                action, suit or proceeding by or before any Governmental Entity or
                any
                arbitrator involving the Company or its property;
                and

            

    

     

    
      	 	
              h.

            	
              The
                Company has complied, and is in compliance with, all Applicable Laws,
                and
                the Company has all Permits (as defined below in Section 6.11) to,
                and
                necessary in, the conduct of its business as currently conducted
                and as
                currently planed to be conducted;
                and

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              i.

            	
              The
                restated Memorandum and Articles have been duly adopted by the Company
                by
                all requisite Board and shareholder action, are in full force and
                effect,
                have been filed with the applicable Governmental Entity and all requisite
                approvals, consents and authorizations related thereto have been
                obtained.

            

    

     

    
      	 	
              vi.

            	
              drafts
                of all relevant filings to be made by the Company in relation to
                the
                Convertible Preference Shares that PIAC is subscribing to at
                Closing.

            

    

     

    No
      Material Adverse Event  

     

    No
      event,
      occurrence, fact, condition, change or development shall exist or have occurred
      or come to exist since the Effective Date that, individually or in the
      aggregate, has had or could reasonably be expected to have a material adverse
      effect on the business, prospects, operations, properties, condition (financial
      or otherwise) or results of operations of the Company or the Group Company
      (a
“Material
      Adverse Effect”).

     

    No
      Injunctions or Restraints; Illegality  

     

    No
      order
      issued by any court of competent jurisdiction or other legal or regulatory
      restraint or prohibition preventing the consummation of the transactions
      contemplated by this Agreement shall be in effect, nor shall any proceeding
      seeking any of the foregoing be pending, nor shall there be any action taken,
      or
      any statute, rule, regulation or order enacted, entered, enforced or threatened,
      which makes the consummation of the transactions illegal.

     

    Absence
      of Proceedings  

     

    There
      shall not be pending or, with reasonable likelihood of success, threatened
      any
      suit, action or proceeding (a “Proceeding”)
      (i) seeking to prohibit or limit the ownership by PIAC of any securities of
      the Company, or to compel PIAC, its Affiliates or the Company to dispose of
      or
      hold separate any securities of the Company as a result of the transactions
      contemplated by the Transaction Agreements or (ii) seeking to impose
      limitations on the ability of PIAC to acquire or hold, or exercise full rights
      of ownership of, the Shares or (iii) seeking to prohibit PIAC or any of its
      Affiliates from participating in any material respect the business or operations
      of the Company.

     

    Due
      Diligence

     

    Completion
      of the due diligence with respect to the Company and the Group Company to the
      satisfaction of PIAC.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Co-operation
      

     

    The
      Company and the Promoters having extended all reasonable cooperation to PIAC
      in
      obtaining all approvals and other corporate authorisations in connection with
      the consummation of the transactions contemplated by this Agreement and the
      Shareholders’ Agreement. 

     

    
      
        	5.	
                Conditions
                  to the Company’s Obligations to Issue the Convertible Preference
                  Shares

              

      

    

     

    The
      Company’s obligation to allot, issue and deliver the Convertible Preference
      Shares at Closing is subject to the satisfaction on or before Closing of the
      following conditions, unless waived in writing by the Company:

     

    Representations
      and Warranties  

     

    The
      representations and warranties made by PIAC in Section 7 hereunder and in
      the other Transaction Agreements shall be true and correct when made and as
      of
      the date of Closing (unless stated to relate to a specific earlier date, in
      which case such representations and warranties shall be true and correct as
      of
      such earlier date).

     

    Covenants  

     

    All
      covenants, agreements and conditions contained in this Agreement and the other
      Transaction Agreements to be performed by PIAC on or before the date of Closing
      shall have been performed or complied with.

     

    Approvals

     

    PIAC
      having obtained all approvals and other corporate authorisations as may be
      necessary in connection with its subscription to the Convertible Preference
      Shares under this Agreement; provided that, to the extent required, the Company
      and the Promoters shall extend all reasonable cooperation to PIAC in obtaining
      such approvals.

     

    Shareholders’
      Agreement  

     

    PIAC
      shall have duly executed and delivered the Shareholders’ Agreement and the same
      shall be in full force and effect and shall be legal, valid, binding and
      enforceable against the parties thereto in accordance with the terms
      thereof.

     

    No
      Injunctions or Restraints; Illegality  

     

    No
      order
      issued by any court of competent jurisdiction or other legal or regulatory
      restraint or prohibition preventing the consummation of the transactions
      contemplated by this Agreement shall be in effect, nor shall any proceeding
      seeking any of the foregoing be pending, nor shall there be any action taken,
      or
      any statute, rule, regulation or order enacted, entered or enforced, which
      makes
      the consummation of the transactions illegal.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      
        
          	6.	
                  Representations
                    and Warranties of the Company and the Promoters

                

        

      

    

     

    The
      Company and each of the Promoters represent and warrant to PIAC, as of the
      date
      hereof and as of the date of Closing (with reference to the facts and
      circumstances then existing), as follows:

     

    Organization,
      Good Standing  

     

    (a)
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the Republic of Mauritius, and has made all filings and
      secured all approvals necessary for the conduct of its business and as required
      by law, other than such filings and approvals, the absence of which would not
      result in a Material Adverse Effect. The Company has requisite corporate power
      and authority to own, lease and operate its properties and assets, to carry
      on
      its business as currently conducted or currently proposed to be conducted and
      to
      execute and deliver, and to perform its obligations pursuant to the Transaction
      Agreements to which it is a party. The Company has requisite corporate power
      and
      authority to allot, issue and deliver the Convertible Preference Shares and
      to
      perform its obligations pursuant to the Articles and the Memorandum. 

     

    (b)
       The
      Group
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the Republic of India, and has made all filings and secured
      all approvals necessary for the conduct of its business and as required by
      law,
      other than such filings and approvals, the absence of which would not result
      in
      a Material Adverse Effect. The Group Company has requisite corporate power
      and
      authority to own, lease and operate its properties and assets, to carry on
      its
      business as currently conducted or currently proposed to be conducted and to
      execute and deliver, and to perform its obligations pursuant to the Transaction
      Agreements. 

     

    Capitalization 
      

     

    (a)
      As of
      the date hereof, the issued, subscribed and paid up capital of the Company
      is
      USD 20,000 (Twenty Thousand Only) comprising 20,000,000 (Twenty Million Only)
      Equity Shares and no Convertible Preference Shares have been issued. At Closing,
      all of the outstanding Equity Shares will be owned by the Equity Shareholders,
      as set forth in Schedule I. Following Closing, all of the outstanding Equity
      Shares will be owned by the Equity Shareholders, and all of the outstanding
      Convertible Preference Shares will be owned by PIAC. 

     

    (b) As
      of the
      date hereof, the issued, subscribed and paid up capital of the Group Company
      is
      Rs. 500,000 of which 50,000 equity shares have been issued. At Closing, all
      of
      the issued and outstanding shares of the Group Company will be owned as set
      out
      in Schedule I. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (c) All
      issued and outstanding Shares have been duly authorized and validly issued
      and
      allotted in compliance with Applicable Law, including without limitation
      Applicable Laws concerning the issuance of securities, are fully paid and
      non-assessable and free of all Liens. 

     

    (d) The
      rights, preferences, privileges and restrictions of the Shares will be as stated
      in the Articles, the Memorandum and the Transaction Agreements. 

     

    (e) The
      Shares will be, as at Closing, duly authorized, validly issued, fully paid,
      non-assessable and in compliance with the provisions of this Agreement and
      Applicable Law. As at Closing, the Shares will be free of any Liens; provided,
      however, that the Shares are subject to restrictions on Transfer as set forth
      in
      the Shareholders’ Agreement. As at Closing, except as set forth in the
      Shareholders’ Agreement and the Articles, the Shares will not be subject to any
      pre-emptive rights, rights of first refusal or any similar rights.

     

    (f) Except
      for the rights provided pursuant to this Agreement and the Shareholders’
Agreement, there are no options, warrants or other rights or agreements to
      subscribe to, or based on the value of, any of the Company’s unissued share
      capital. There are no other securities, including any bonds, debentures, notes
      or other indebtedness of the Company which carry the right to vote (or
      convertible into, or exchangeable for, securities having the right to vote)
      on
      any matters on which holders of shares of the Company may vote (“Voting
      Company Debt”).
      Except
      as set forth above and in the Shareholders’ Agreement, as at Closing, there will
      not be any options, warrants, rights, convertible or exchangeable securities,
      “phantom” stock rights, stock appreciation rights, stock-based performance
      units, commitments, agreements, arrangements or undertakings of any kind to
      the
      Company is a party or by which it is bound (i) obligating the Company to
      issue or deliver, or cause to be issued or delivered, additional shares of
      capital stock or other equity interests in, or any security convertible or
      exercisable for or exchangeable into any capital stock of or other equity
      interest in, the Company or any Voting Company Debt or (ii) obligating the
      Company to issue, grant, extend or enter into any such option, warrant, call,
      right, security, commitment, contract, arrangement or undertaking. As at
      Closing, there will not be any outstanding contractual obligations of the
      Company and / or the Group Company to repurchase, redeem or otherwise acquire
      any shares.

     

    Authorization

     

    (a)
      The
      Company has all requisite power and authority to execute and deliver the
      Transaction Agreements, to carry out and perform its obligations under the
      terms
      hereunder and to allot, issue and deliver the Convertible Preference Shares
      hereunder. All action on the part of the Company necessary for the
      authorization, execution, delivery and performance of the Transaction
      Agreements, and the performance of all of the Company’s obligations thereunder,
      has been taken or will be taken before the authorization, execution, delivery
      and performance of the relevant Transaction Agreement. 

     

    (b) As
      at
      Closing, the Transaction Agreements, when executed and delivered by the parties
      thereto, will constitute valid and legally binding obligations of the Company,
      enforceable in accordance with their terms, except (i) as limited by
      applicable bankruptcy, insolvency, reorganization, moratorium and other laws
      of
      general application affecting enforcement of creditors’ rights generally and
      (ii) as limited by laws relating to the availability of specific
      performance, injunctive relief or other equitable remedies or by general
      principles of equity.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Material
      Contracts  

     

    The
      Company and / or the Group Company have not entered into any contract with
      any
      third parties that are material to the business, condition (financial or
      otherwise), operations, performance, properties or prospects of the Company
      and
      / or the Group Company,
      except
      for the contracts set out in Schedule III. 

     

    Intellectual
      Property

     

    (a)
      The
      Company and the Group Company own or possess the legal rights to the “Citius
      Power” trade name and/or trademark and internet domain “citiuspower.com” (the
“Intellectual
      Property”)
      as is
      necessary to the conduct of the business of the Company as currently conducted
      and as currently proposed to be conducted, without any material conflict with
      or
      infringement of the rights of others.

     

    (b)
       All
      the
      Intellectual Property has been duly registered in, filed in or issued by the
      appropriate Governmental Entity where such registration, filing or issuance
      is
      necessary for the conduct of the business of the Company as presently conducted
      or as currently proposed to be conducted and the Company has the right to use
      all of such Intellectual Property. The consummation of the transactions
      contemplated by the Transaction Agreements do not and will not conflict with,
      alter or impair any such rights. The Company has not received any communication
      from any person asserting any ownership interest in any of the Company’s
      Intellectual Property and, to the best knowledge of the Company and each
      Promoter, as the case may be, no other person is violating, conflicting with
      or
      infringing the Intellectual Property of the Company.

     

    (c) The
      Company has not received any written notice that the conduct of its business
      as
      currently conducted or currently proposed to be conducted is violating or
      infringing the Intellectual Property of any other person or entity. To the
      best
      knowledge of the Company and each Promoter, as the case may be, no such written
      notice is expected or threatened and the conduct of its business as currently
      conducted or currently proposed to be conducted does not and will not violate
      or
      infringe the Intellectual Property of any other person or entity.

     

    (d) The
      Company is not obligated to make any payments by way of royalties, fees or
      otherwise to any owner or licensor of or claimant to any Intellectual Property
      with respect to the use thereof in connection with the conduct of its business
      as currently conducted or currently proposed to be conducted.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Title
      to Properties and Assets; Liens

     

    The
      Company and the Group Company have good and marketable title to all its
      properties and assets, and has good title to all its leasehold interests, in
      each case free and clear of all Liens, except (i) Liens for current Taxes
      (as defined below) not yet due and payable and (ii) Liens imposed by
      Applicable Law. With respect to the property and assets it leases, the Company
      and the Group Company are in compliance with such leases in all material
      respects and holds a valid leasehold interest free of any Liens, subject to
      clauses (i) and (ii) above. All facilities, machinery, equipment, fixtures,
      vehicles and other properties owned, leased or used by the Company and the
      Group
      Company are in good operating condition and repair (ordinary wear and tear
      excepted) and are reasonably fit and usable for the purposes for which they
      are
      being used. 

     

    Compliance
      with Applicable Law and Other Instruments  

     

    The
      Company and the Group Company are not in violation in any material respect
      of:
      (i) any term of the Articles or Memorandum; (ii) any Applicable Law in respect
      of the conduct of its business or the ownership of its properties; or
      (iii) any term or provision of any permit, license, agreement, contract,
      mortgage, indebtedness, instrument, judgment, order or decree to which it is
      party or by which it or its properties is bound. The Company and the Group
      Company are not in violation in any material respect of any Applicable Law.
      The
      Company and the Group Company have not received any written communication that
      alleges that it is not in compliance with any Applicable Law. 

     

    No
      Conflicts  

     

    The
      execution and delivery of the Transaction Agreements by the Company, the
      performance by the Company of its obligations pursuant to the Transaction
      Agreements, the consummation of the transactions contemplated by the Transaction
      Agreements and the allotment, issuance and delivery of the Convertible
      Preference Shares will not result in any violation of, or conflict with, or
      constitute a default under, (i) the Articles or Memorandum, each as amended
      to
      date or (ii) any Applicable Law or, to the best knowledge of the Company and
      each Promoter, as the case may be, result in the suspension, revocation,
      impairment, forfeiture or non-renewal of any permit, license, authorization
      or
      approval applicable to the Company, its business or operations or any of its
      assets or properties.

     

    Litigation

     

    There
      are
      no private and governmental actions, suits, proceedings, claims, arbitrations,
      investigations or show cause notices pending or, to the best knowledge of the
      Company and the Promoters, as the case may be, threatened against the Company,
      the Group Company or their respective properties before any Governmental Entity.
      The Company and / or the Group Company are not a party or subject to the
      provisions of any order, writ, injunction, judgment or decree of any
      Governmental Entity. There is no action, suit or proceeding initiated by the
      Company or the Group Company currently pending or which the Company or the
      Group
      Company currently intends to initiate.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Consent

     

    No
      consent, approval or authorization of or designation, declaration or filing
      (other than the filings set out in this Agreement) with any Governmental Entity
      or third party on the part of the Company is required in connection with the
      valid execution and delivery of the Transaction Agreements, the performance
      by
      the Company of its obligations thereunder, the allotment, issuance or delivery
      of the Convertible Preference Shares or the consummation of any other
      transaction contemplated by the Transaction Agreements, except such filings
      with
      Governmental Entities as may be required under Applicable Laws, which will
      be
      timely filed within the applicable periods therefor.

     

    Permits 
      

     

    Each
      of
      the Company and the Group Company has all franchises, permits, licenses,
      approvals and any similar authority (“Permits”)
      necessary for the conduct of its business as now being conducted and as
      currently planned to be conducted. The Company and the Group Company are
      currently not in default under any of its Permits, and are in compliance with
      all the material terms and conditions of its Permits, including payment of
      any
      license fees, amounts and charges thereunder to, and the making of filings,
      reporting and submissions required to be made with, any Governmental Entity.
      Neither the Company nor the Group Company has received written notice of any
      suit, action or proceeding relating to the revocation or modification of any
      of
      its Permit and none of such Permits will be subject to suspension, modification,
      revocation or non-renewal as a result of the execution and delivery of the
      Transaction Agreements or the consummation of the transaction contemplated
      therein. 

     

    Offering 
      

     

    The
      allotment, issuance and delivery of the Convertible Preference Shares to be
      issued in conformity with the terms of this Agreement, constitute transactions
      exempt from the registration or qualification requirements of all applicable
      securities laws in Mauritius, and none of the Company, the Group Company or
      any
      authorized agent acting on their behalf has taken or will take any action
      hereafter that would cause the loss of such exemption. None of the Company,
      the
      Group Company or any agent on their behalf has solicited or will solicit any
      offers to allot and issue or has offered to allot and issue or will offer to
      allot and issue all or any part of the Shares to any person or persons so as
      to
      bring the allotment of such Convertible Preference Shares by the Company within
      the registration provisions of all applicable securities laws in
      Mauritius.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Voting
      Rights  

     

    Other
      than the Shareholders’ Agreement, no shareholder of the Company or the Group
      Company has entered into any agreement with respect to the voting of its
      shares.

     

    Obligations
      to Related Parties  

     

    No
      employee, officer, director or stockholder of the Company nor any entity
      controlled by any such individual or entity or in the case of an individual,
      member of his or her immediate family, is indebted or obligated to the Company,
      nor is the Company indebted or obligated (or committed to make loans or extend
      or guarantee credit) to any of them other than (i) for payment of salary
      for services rendered, (ii) reimbursement for reasonable expenses incurred
      on behalf of the Company and (iii) for other standard employee benefits
      made generally available to all employees. To the best knowledge of the Company
      and each Promoter, as the case may be, none of such persons has any direct or
      indirect ownership interest in any firm or corporation with which the Company
      is
      an Affiliate or has a business relationship, or any firm or corporation that
      competes with the Company, except in connection with the ownership of stock
      in
      publicly-traded companies. To the best knowledge of the Company and each
      Promoter, as the case may be, no employee, officer, director or stockholder,
      nor
      any member of their immediate families, is, directly or indirectly, interested
      in any property or contract of the Company (other than as separately disclosed
      in writing to PIAC and such contracts as relate to any such person’s ownership
      of capital stock or other securities of the Company or the employment agreements
      with the Company in the ordinary course of business).

     

    Employees  

     

    Neither
      the Company nor the Group Company is a party to any collective bargaining
      agreements with respect to any of their employees. There is no labour strike,
      dispute, slowdown or stoppage actually pending or threatened against or
      affecting the Company or the Group Company. There is no industrial or trade
      dispute or any dispute or negotiation regarding a claim with any trade union
      that relates to or involves the Company or the Group Company. No employee of
      the
      Company or the Group Company has been granted the right to continued employment
      or to any compensation following termination of employment. No current or former
      director, officer or employee of the Company or the Group Company will be
      entitled to (i) any severance, separation, change of control, termination,
      bonus
      or additional compensation or benefits or (ii) any acceleration of the time
      of payment or vesting of any compensation or benefits or the forgiveness of
      indebtedness owed by such current or former director, officer or employee,
      in
      each case as a result of the transactions contemplated by the Transaction
      Agreements (alone or in connection with any other event) or in connection with
      the termination of such person’s employment on or after Closing. The Company is
      not aware that any officer, key employee or group of employees intends to
      terminate his, her or their employment with the Company or the Group Company.
      There are no actions pending or, to the best knowledge of the Company and the
      Promoters, as the case may be, threatened by any former or current employee
      concerning such person’s employment by the Company before any Governmental
      Entity. Neither the Company nor the Group Company has violated any labour
      laws.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Disclosure 

     

    Neither
      the Transaction Agreements nor any other documents or certificates delivered
      in
      connection therewith, when taken as a whole, contain any untrue statement of
      a
      material fact or omit to state a material fact necessary to make the statements
      contained herein or therein not misleading in any material respect in light
      of
      the circumstances under which they were made. The financial projections relating
      to the proposed business of the Company and the Group Company delivered to
      PIAC
      were prepared on the basis of assumptions the Company and each Promoter, as
      the
      case may be, reasonably believed in good faith at the time of preparation to
      be
      reasonable and the Company and each Promoter, as the case may be, have no
      knowledge of any fact or information that would lead it to believe that such
      assumptions are incorrect or misleading in any material respect; it being
      recognized by PIAC that such financial projections as they relate to future
      events are not to be viewed as fact and that actual results during the period
      or
      periods covered by such financial projections may differ from the projected
      results set forth therein.

     

    Existing
      Indebtedness  

     

    Neither
      the Company nor the Group Company has any existing indebtedness except
      liabilities arising or incurred in connection with the organisation of the
      Company and the Group Company and financing efforts and in connection with
      proposed asset acquisitions as separately disclosed in writing to
      PIAC. 

     

    Financial
      Statements  

     

    (a)
      The
      audited financial statements of the Company and the Group Company for the period
      ended December 31, 2007 and a balance sheet of the Company as of February 28,
      2008 (the “Financial
      Statements”),
      true
      and correct copies of which have been provided to PIAC, have been prepared
      in
      conformity with International Financial Reporting Standards, consistently
      applied and followed throughout the period indicated (except for any notes
      to
      the Financial Statements which indicate to the contrary therein), and on that
      basis present fairly and accurately in all respects the financial condition,
      and
      results of operations and cash flows of the Company and the Group Company as
      of
      date and for the respective periods indicated. 

     

    (b) The
      Company and the Group Company have no liabilities or obligations of any nature,
      whether known or unknown, accrued, contingent or otherwise, except (i) for
      liabilities and obligations in the respective amounts reflected or reserved
      against in the Financial Statements and (ii) for liabilities and
      obligations incurred in the ordinary course of business consistent with past
      practice since.

     

    (c) The
      balance sheets reflected in the Financial Statements present true and complete
      representations of the assets and liabilities of the Company and the Group
      Company as of the dates specified therein.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (d) The
      Company and the Group Company have established and maintains, adheres to and
      enforces a system of internal accounting controls that are effective in
      providing assurance regarding the reliability, completeness and accuracy of
      financial reporting and the preparation of its Financial Statements in
      accordance with Applicable Law and International Financial Reporting Standards.
      

     

    (e) The
      Company and the Group Company keep books, records and accounts in reasonable
      detail that accurately and fairly reflect the acquisitions and dispositions
      and
      all other transactions and the value of inventory is calculated in accordance
      with International Financial Reporting Standards. 

     

    Insurance 
      

     

    The
      Company and the Group Company maintain policies of fire and casualty, liability
      and other forms of insurance in such amounts, with such deductibles and against
      such risks and losses as are, in its reasonable judgment, reasonable for the
      business and assets. The Company and the Group Company are insured by
      institutions that the Company believes to be financially sound and reputable
      with insurance policies in full force and effect. All premiums due and payable
      under all such policies have been paid. The Company and the Group Company are
      in
      no default with respect to any of the material provisions contained in any
      such
      insurance policy and has not failed to give any notice or present any claim
      under any such insurance policy in due and timely fashion, and no notice of
      cancellation or termination has been received with respect to any such policy
      which has not been replaced on substantially similar terms prior to the date
      of
      such cancellation. The Company is not aware of any matters with respect to
      which
      it may claim under any such insurance policy. The consummation of the
      transactions contemplated in the Transaction Agreements will not cause a
      cancellation or reduction in the coverage of such policies. There are no
      insurance claims and liabilities outstanding or otherwise payable to any Person
      by the Company or the Group Company.

     

    Business 
      

     

    Neither
      the Company nor the Group Company has, since the date of incorporation, carried
      on any business, conducted any operations or owned, directly or indirectly,
      any
      capital stock, membership interest, partnership interest, joint venture interest
      or other equity interest in any other person.

     

    Unlawful
      Practices  

     

    None
      of
      the Company, the Group Company or any of their respective directors, officers,
      agents, employees or any other persons acting on their behalf has, in connection
      with the operation of the its business, (i) used any corporate or other
      funds for unlawful contributions, payments, gifts or entertainment, or made
      any
      unlawful expenditures relating to political activity, to government officials,
      candidates or members of political parties or organizations, or established
      or
      maintained any unlawful or unrecorded funds in violation of Applicable Law,
      (ii) paid, accepted or received any unlawful contributions, payments,
      expenditures or gifts, or (iii) violated or operated in non-compliance with
      any export restrictions, anti-boycott regulations, embargo regulations or other
      Applicable Laws.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Taxes 
      

     

    
      	
            	(a)	
              As
                used in this Agreement,

            

    

     

    “Taxes”
means
      all (i) federal, national, state and local, domestic and foreign, taxes,
      assessments, duties or similar charges of any kind whatsoever, including all
      corporate franchise, income, sales, service, use and occupation, ad
      valorem,
      receipts, value added, profits, wealth, license, withholding, employment,
      excise, property, net worth, capital gains, transfer, stamp, documentary, social
      security, payroll, environmental, alternative minimum, occupation, recapture
      and
      other taxes, and including any interest, penalties and additions imposed with
      respect to such amounts; (ii) liability for the payment of any amounts of
      the type described in clause (i) as a result of being a member of an affiliated,
      consolidated, combined, unitary or aggregate group; and (iii) liability for
      the
      payment of any amounts as a result of an express or implied obligation to
      indemnify any other person with respect to the payment of any amounts of the
      type described in clause (i) or (ii).

     

    “Taxing
      Authority”
means
      any federal, national, state or local, domestic or foreign, governmental body
      (including any subdivision, agency or commission thereof), or any
      quasi-governmental body, in each case, exercising regulatory authority in
      respect of Taxes.

     

    “Tax
      Return”
means
      all returns, declarations of estimated payments of Taxes, reports, estimates,
      information returns and statements, including any related or supporting
      information with respect to any of the foregoing, filed or to be filed with
      any
      Taxing Authority in connection with the determination, assessment, collection
      or
      administration of any Taxes.

     

    
      	 	
              (b)

            	
              The
                Company and the Group Company have timely filed all Tax Returns required
                to be filed in the manner prescribed by law.  All such Tax
                Returns are complete and correct in all material respects. The Company
                and
                the Group Company have timely paid all Taxes due from it with respect
                to
                the taxable periods covered by such Tax Returns and all other Taxes
                for
                which it is liable other than Taxes not yet due, for which adequate
                reserves, in accordance with International Financial Reporting Standards,
                have been established. The Company and the Group Company have no
                liability
                for any Taxes of any person other than itself (i) as a result of
                being a
                member of an affiliated, consolidated, combined, unitary or aggregate
                group, (ii) as a transferee or successor or (iii) by contract or
                otherwise.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              No
                Tax Return of the Company or the Group Company is or has ever been
                under,
                or, to the best knowledge of the Company and the Promoters, as the
                case
                may be, has been threatened with, audit or examination by any Taxing
                Authority, and no written notice of such an audit or examination
                has been
                received.

            

    

     

    
      	 	
              (d)
                

            	
              No
                Liens for Taxes exist with respect to any assets or properties of
                the
                Company or the Group Company.

            

    

     

    
      	 	
              (e)

            	
              There
                is no Tax deficiency outstanding or assessed or proposed against
                the
                Company or the Group Company, nor has the Company or the Group Company
                extended the period for the assessment or collection of any Tax.
                

            

    

     

    
      	 	
              (f)

            	
              Neither
                the Company nor the Group Company is not a party to or bound by any
                tax
                sharing agreement, tax indemnity obligation or similar agreement,
                arrangement or practice with respect to
                Taxes.

            

    

     

    
      	 	
              (g)

            	
              The
                Company and the Group Company have complied with all Applicable Laws
                relating to the payment and withholding of Taxes (including withholding
                against employees) and has, within the time and the manner prescribed
                by
                Applicable Law, withheld from and paid over to the proper Taxing
                Authority
                all amounts required to be so withheld and paid over under Applicable
                Laws.

            

    

     

    Foreign
      Exchange Regulations  

     

    The
      execution of this Agreement and the other Transaction Agreements and the
      consummation of the transactions contemplated under this Agreement and the
      other
      Transaction Agreements is in compliance with all applicable foreign exchange
      regulations and the issue, allotment and delivery of Convertible Preference
      Shares to PIAC hereunder is permissible under the foreign exchange regulations
      and requires no prior approvals from or filings with any Governmental
      Entity.

     

    Subsidiaries
      

     

    Except
      as
      disclosed in Schedule IV, the Company does not own or control, directly or
      indirectly, any equity interest in any Person. 

     

    
      
        
          	7.	
                  Representations
                    and Warranties of
                    PIAC

                

        

      

    

     

    PIAC
      hereby represents and warrants to the Company, as of the date hereof and as
      at
      Closing, as follows:

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Authorization 
      

     

    (a)
       PIAC
      has
      all requisite power and authority to execute and deliver the Transaction
      Agreements to which it is a party, to carry out and perform its obligations
      under the terms thereunder and to subscribe to the Convertible Preference Shares
      hereunder. All action on the part of PIAC necessary for the authorization,
      execution, delivery and performance of the Transaction Agreements to which
      it is
      a party, and the performance of all of PIAC’s obligations thereunder, has been
      taken or will be taken before Closing.
      It is
      specifically noted and understood that the authorisation of the shareholders
      of
      PIAC is required prior to PIAC subscribing to the Convertible Preference Shares
      and transferring the funds necessary for the purchase of the Convertible
      Preference Shares. PIAC intends to file the requisite proxy asking for such
      approval. 

     

    (b) As
      at
      Closing, the Transaction Agreements to which PIAC is a party, when executed
      and
      delivered by the parties thereto, will constitute valid and legally binding
      obligations of PIAC, enforceable in accordance with their terms, except:
      (i) as limited by applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws of general application affecting enforcement of
      creditors’ rights generally; and (ii) as limited by laws relating to the
      availability of specific performance, injunctive relief or other equitable
      remedies or by general principles of equity.

     

    (c) Subject
      to shareholder approval as set out in Section 7.1(a), PIAC has the requisite
      legal ability and possesses all requisite approvals to subscribe to the
      Convertible Preference Shares. No consent, approval, authorization, order,
      filing, registration or qualification of or with any court, Governmental Entity
      or third person is required to be obtained by PIAC in connection with the
      execution and delivery of this Agreement by PIAC or the performance of PIAC’s
      obligations hereunder.

     

    
      
        
          	8.	
                  Indemnification

                

        

      

    

     

    Indemnification
      

     

    From
      and
      after Closing, the Company shall indemnify and hold harmless PIAC from and
      against any and all actual losses, claims, damages, liabilities, fines,
      penalties and reasonable fees and expenses but excluding any consequential
      loss
      or loss of profit (“Losses”)
      to
      PIAC in connection with or as a result of:

     

    
      	 	
              (a)

            	
              any
                breach of, any representation or warranty of the Company or the Promoters
                contained in this Agreement, or in any certificate, instrument, document
                or agreement delivered by the Company or the Promoters pursuant to
                this
                Agreement or in connection with the transactions contemplated hereby,
                or
                any such representation or warranty being untrue or incorrect as
                of the
                applicable date;

            

    

     

    
      	 	
              (b)

            	
              the
                failure by the Company to perform any covenant or agreement in this
                Agreement or in any certificate, instrument, document or agreement
                delivered by the Company, up to Closing, pursuant to or in connection
                with
                this Agreement, 

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              any
                and all actions, suits, proceedings, demands, assessments, judgments,
                damages, awards, costs and expenses (including fees) incident to
                any of
                the foregoing or incurred in connection with the enforcement of the
                rights
                of PIAC under this Section 8.1 with respect to the
                foregoing.

            

    

     

    The
      maximum liability of the Company to PIAC in connection with or resulting from
      the causes set out in Section 8.1(a) shall be USD 35,000,000 (USD Thirty Five
      Million Only), except that any Losses in connection with, or resulting from,
      fraud shall not be subject to or included in such limits. There will be no
      liability for any Loss unless the amount of any single head of Loss is at least
      USD 150,000 (USD One Hundred and Fifty Thousand Only) and all Losses in
      aggregate amount to at least USD 500,000 (USD Five Hundred Thousand
      Only).

     

    The
      obligations of the Company under this Section 8 will survive the payment or
      Transfer of any of the Shares or the enforcement, amendment or waiver of any
      provision of this Agreement but shall expire twenty four (24) months after
      Closing; provided, however, that claims of PIAC based on fraud shall survive
      indefinitely, subject to Applicable Law, and, provided further, that the
      Company’s obligations to indemnify and hold harmless shall not terminate with
      respect to any item as to which PIAC shall have, before its expiration,
      previously made a claim by delivering a written notice of such claim to the
      Party to be providing the indemnification.

     

    
      
        
          	9.	
                  Miscellaneous

                

        

      

    

     

    Termination 
      

     

    Notwithstanding
      anything to the contrary in this Agreement, this Agreement may be terminated
      and
      the transactions contemplated by this Agreement abandoned at any time prior
      to
      Closing: 

     

    
      	 	
              i.

            	
              by
                mutual written consent of the Company and
                PIAC;

            

    

     

    
      	 	
              ii.

            	
              by
                the Company if any of the conditions set forth in Section 5 shall
                have
                become incapable of fulfilment, and shall not have been waived by
                the
                Company;

            

    

     

    
      	 	
              iii.

            	
              by
                PIAC if any of the conditions set forth in Section 4 shall have become
                incapable of fulfilment, and shall not have been waived by PIAC;
                or

            

    

     

    
      	 	
              iv.

            	
              by
                either the Company or PIAC, if Closing does not occur by May 15,
                2008;
                

            

    

     

    provided,
      however,
      that
      the Party seeking termination pursuant to clause (ii), (iii) or (iv) is not
      then
      in material breach of any of its representations, warranties, covenants or
      agreements contained in this Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              In
                the event of termination by the Company or PIAC pursuant to this
                Section
                9.1, written notice thereof shall forthwith be given to the other
                Parties
                and the transactions contemplated by this Agreement shall be terminated,
                without further action by any Party.

            

    

     

    
      	 	
              (b)

            	
              If
                this Agreement is terminated and the transactions contemplated hereby
                are
                abandoned as described in this Section 9.1, this Agreement shall
                become
                null and void and of no further force and effect, except for the
                provisions of Sections 9.4, 9.7, 9.8, 9.9, 9.10 and 9.11. Nothing
                in this
                Section 9.1 shall be deemed to release any Party from any liability
                for
                any breach by such Party of the terms and provisions of this Agreement
                prior to such termination or to impair the right of any Party to
                compel
                specific performance by any other Party of its obligations under
                this
                Agreement.

            

    

     

    Advise
      of Changes

     

    The
      Company shall promptly advise PIAC in writing of the occurrence of any Material
      Adverse Effect.

     

    Access
      to Information 

     

    The
      Company shall afford to PIAC and its accountants, counsel and other
      representatives reasonable access, upon reasonable notice during normal business
      hours during the period prior to Closing, to all the personnel, properties,
      books, contracts, commitments, Tax Returns and records of the Company and,
      during such period, shall furnish promptly to PIAC any information concerning
      the Company, as PIAC may reasonably request.

     

    Publicity
      

     

    No
      announcements or other disclosure concerning the transactions contemplated
      by
      this Agreement or any ancillary matter shall be made before Closing by any
      Party
      save in the form agreed between the Parties or where required by Applicable
      Law
      or regulation or any Governmental Agency or authority. The Parties shall consult
      with each other in advance in connection with the content and timing of the
      announcement to be made on the Effective Date and Closing. 

     

    Best
      Efforts; Conduct of Business 

     

    (a)
       On
      the
      terms and subject to the conditions of this Agreement, each Party shall use
      its
      best efforts to cause Closing to occur, including taking all reasonable actions
      necessary to comply promptly with all legal requirements that may be imposed
      on
      it with respect to each Closing. 

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (b) From
      the
      Effective Date to Closing, each of the Company and the Group Company shall
      conduct its business in the usual, regular and ordinary course in substantially
      the same manner as previously conducted and use all reasonable efforts to keep
      intact its business, keep available the services of its current employees and
      preserve its relationships with customers, suppliers, licensors, licensees
      and
      others with whom it deals to the end that its business shall be unimpaired
      at
      the date of the valid and binding execution and delivery of the Shareholders’
Agreement. Without prejudice to the foregoing, from the Effective Date until
      the
      date that the Shareholders’ Agreement is in full force and effect, legal, valid,
      binding and enforceable, neither the Company nor the Group Company shall take
      and/or implement without approval of PIAC any of the following actions (except
      for actions taken to implement, or in pursuance of, provisions of this Agreement
      or the other Transaction Agreements):

     

    
      	 	
              (i)

            	
              Entry
                into any new lines of business, which are unrelated to the business,
                or
                making any substantial change in the
                business;

            

    

     

    
      	 	
              (ii)

            	
              Change
                to the company’s constitutional
                documents;

            

    

     

    
      	 	
              (iii)

            	
              Winding
                up or liquidating the company or take any action in furtherance
                thereof;

            

    

     

    
      	 	
              (iv)

            	
              Any
                merger, consolidation, amalgamation, scheme or other similar transaction
                involving the company;

            

    

     

    
      	 	
              (v)

            	
              The
                sale of assets of the Company for consideration greater than USD
                300,000
                (USD Three Hundred Thousand Only) or the equivalent of the assets
                of the
                company except for the sale of products or services in the ordinary
                course
                of the business; 

            

    

     

    
      	 	
              (vi)

            	
              Issuance
                of additional securities, any recapitalization, reclassification
                or other
                change in the company’s capital structure, including changing the rights
                and preferences of securities;

            

    

     

    
      	 	
              (vii)

            	
              Declaration
                of any dividend or any buy back of securities of the
                company;

            

    

     

    
      	 	
              (viii)

            	
              Issuance
                or guarantee of any indebtedness or undertaking any leasehold obligations
                by the company in excess of USD 25,000 (USD Twenty Five Thousand
                Only);
                

            

    

     

    
      	 	
              (ix)

            	
              Entering
                by the company or any subsidiary into any major agreements whose
                total net
                present value exceeds USD 50,000 (USD Fifty Thousand Only) or the
                equivalent.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Post-Closing
      Covenants  

     

    9.6 Unless
      otherwise set forth in this Agreement, immediately after Closing, but in no
      event later than five (5) Business Days from each Closing, the Company shall
      make all applicable filings under Applicable Law.

     

    Notices 
      

     

    9.7 Notices,
      demands or other communication required or permitted to be given or made under
      this Agreement shall be in writing and delivered by hand or sent by prepaid
      post
      with recorded delivery or by telefax to the intended recipient at its address
      set forth herein, or to such other address or telefax number as each Party
      may
      from time to time duly notify to the others:

     

    if
      to the
      Company: 

     

    Citius
      Power Limited, c/o Matco Limited, Suite 137 2nd Floor, Harbour Front Building,
      President John Kennedy Street, Port Louis, Mauritius. Fax +230 213 6861 Attn:
      Mr. Bruno Hardy; 

     

    with
      a
      copy to: Mr. L. Keith Hughes, Dewey & LeBoeuf, No.1 Minster Court, Mincing
      Lane, London EC3R 7YL, UK. Fax: +44 20 7444 7305 (Attn: Mr. L. Keith Hughes);
      

     

    if
      to
      PIAC: 590 Madison Avenue, 6th Floor, New York, NY 10022, USA. Fax + 1
646
      224 8019
      Attn:
      Mr. Ramesh Akella;

     

    if
      to the
      Promoters: Mr. Ravi Kailas and Mr. Deepak Kochhar, 618 Maker Chambers V, Nariman
      Point, Mumbai 400021, India. Fax: +91 22 2287 5584

     

    Any
      such
      notice, demand or communication shall, unless the contrary is proved, be deemed
      to have been duly served at the time of delivery in the case of service by
      delivery in person or by post, and at the time of dispatch in the case of
      service telefax. For the avoidance of doubt, electronic mail shall not be a
      valid means of making a communication required by this Section.

     

    Governing
      Law 
      

     

    9.8 This
      Agreement shall be governed and interpreted by, and construed in accordance
      with
      English law.

     

    Arbitration 
      

     

    9.9(a) Any
      and
      all disputes or differences, arising out of or in connection with this Agreement
      or its performance shall, so far as it is possible, be settled amicably through
      consultation between the disputing Parties.

     

    (b) If
      after
      30 (thirty) days of consultation, the disputing Parties have failed to reach
      an
      amicable settlement, on any or all disputes or differences arising out of or
      in
      connection with this Agreement or its performance, such disputes or differences
      shall be submitted to final and binding arbitration at the request of any of
      the
      disputing Parties upon written notice to that effect to the
      other(s).

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (c) Such
      arbitration shall be in accordance with the Rules of Conciliation and
      Arbitration of the International Chamber of Commerce and shall be held in
      London. All proceedings of such arbitration shall be in the English
      language.

     

    (d) The
      arbitration panel shall consist of three arbitrators, one each appointed by
      the
      disputing Parties and the two arbitrators so appointed shall agree on a
      chairman. 

     

    (e) The
      applicable procedural rules shall be the Rules of Conciliation and Arbitration
      of the International Chamber of Commerce.

     

    (f) Arbitration
      awards rendered shall be final and binding and shall not be subject to any
      form
      of appeal. The losing Party shall pay all reasonable out-of-pocket expenses
      (including, without limitation, reasonable attorneys’ fees) incurred by the
      prevailing Party(ies), as determined by the arbitrators, in connection with
      any
      dispute unless the arbitrators direct otherwise.

     

    (g) Any
      controversy concerning whether a dispute is an arbitrable dispute, whether
      arbitration has been waived or as to the interpretation or enforceability of
      this Section 9.9 shall be determined by the arbitration panel.

     

    Expenses 
      

     

    9.10 Each
      Party shall bear its own expenses incurred in connection with this Agreement,
      including all professional and advisory fees.

     

    Survival
       

     

    9.11 The
      representations, warranties, covenants and agreements made in this Agreement
      shall survive for the period indicated in Section 8.3 and shall not be limited
      or otherwise affected by or as a result of any investigation made by any Party
      hereto and the closing of the transactions contemplated hereby.
      However,
      any Party aware of a breach shall have the duty to notify the other Parties
      promptly upon becoming so aware. 

     

    Assignment;
      Benefit; Amendment and Waivers 

     

    9.12(a) Subject
      to the provisions of the Shareholders’ Agreement, the rights and obligations
      hereunder shall not be assignable without the prior written consent of the
      other
      Parties except that PIAC may assign its rights, obligations and duties hereunder
      to any of its Affiliates without consent of the other Parties; provided
      that the
      assignee is bound by the Shareholders’ Agreement. Each of the Parties
      understands, acknowledges and hereby affirms that such assignment may be by
      novation that will release PIAC from all of its obligations and duties
      hereunder. 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (b) This
      Agreement shall be binding upon and shall inure to the benefit of the Parties
      hereto, and their respective successors and permitted assigns, and there shall
      be no third-party beneficiaries to this Agreement.

     

    (c) No
      amendment or waiver of any provision of this Agreement will be valid and binding
      unless it is in writing and signed, in the case of an amendment, by each Party
      or, in the case of waiver, by the Party against whom the waiver is to be
      effective. 

     

    Entire
      Agreement 

     

    9.13 This
      Agreement supersedes all prior discussions and agreements (whether oral or
      written, including all correspondence), if any, between the Parties with respect
      to the subject matter of this Agreement, and this Agreement (together with
      any
      amendments or modifications thereof) contains the sole and entire agreement
      between the Parties hereto with respect to the subject matter hereof, subject
      to
      the Shareholders’ Agreement. 

     

    Severability

     

    9.14 Any
      provision of this Agreement which is invalid or unenforceable shall be
      ineffective to the extent of such invalidity or unenforceability, without
      affecting in any way the remaining provisions hereof.

     

    Counterparts

     

    9.15 This
      Agreement may be executed in any number of counterparts, all of which together
      shall constitute a single instrument. 

     

    Specific
      Performance

     

    9.16 This
      Agreement shall be specifically enforceable at the instance of any Party. The
      Parties agree that any Party not in default will suffer immediate, material,
      immeasurable, continuing and irreparable damage and harm in the event of any
      material breach of this Agreement and the remedies at law in respect of such
      breach will be inadequate (each Party hereby waives the claim or defense that
      an
      adequate remedy at law is available) and that such Party shall be entitled
      to
      seek specific performance against the Party in default for performance of its
      obligations under this Agreement in addition to any and all other legal or
      equitable remedies available to it.

     

    Further
      Actions

     

    9.17(a) Each
      of
      the Parties shall execute and deliver all such future instruments and take
      such
      other and further action as may be reasonably necessary or appropriate to carry
      out the provisions of this Agreement and the intention of the Parties as
      expressed herein.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (b) As
      soon
      as possible after the Effective Date, the Company shall furnish to PIAC the
      audited financial statements of the Company and the Group Company for the period
      ended December 31, 2007 and a balance sheet of the Company as of February 28,
      2008.

     

    Third
      Party Rights 

     

    9.18 No
      Person
      other than a Party may enforce this Agreement by virtue of the Contracts (Rights
      of Third Parties) Act 1999.

     

    Headings;
      Schedules

     

    9.19 All
      Article and Section headings herein are for convenience of reference only and
      are not part of this Agreement, and no construction or inference shall be
      derived therefrom. The Schedules attached hereto and referred to herein are
      a
      part of this Agreement as if fully set forth herein. All references to Sections
      and Schedules shall be deemed references to such parts of this Agreement, unless
      the context shall otherwise require.

     

    [THE
      REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

    

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties have entered into this Agreement the day and year first above
      written.

     

    
      	
              Citius
                Power Limited

            
	 	 
	
              By:
                

            	
              /s/
                Ravi Kailas

            
	
              Name:

            	Ravi
              Kailas
	
              Title:

            	CEO
	 	 
	 	 
	
              Phoenix
                India Acquisition Corp.

            
	 	 
	
              By:
                

            	/s/
              Ramesh S. Akella       
	
              Name:

            	Ramesh
              S.
              Akella       
	
              Title:

            	President

    

    

    
      	
              Ravi
                Kailas

            
	/s/
              Ravi Kailas
	 
	
              Deepak
                Kochhar

            
	
              /s/
                Deepak Kochhar

            

    

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      I

    

    PROMOTERS

    

    
      	
              Promoter
                Name

            	
              Indirect
                Holding of Equity Shares on Effective Date (%)

            
	
              Ravi
                Kailas

            	
              47.5

            
	
              Deepak
                Kochhar

            	
              47.5

            

    

     

    EQUITY
      SHAREHOLDERS

    

    
      	
              Shareholder
                Name

            	
              Holding
                of Equity Shares on Effective Date (%)

            
	
              RSK
                Holdings (BVI) Limited

            	
              47.5

            
	
              DVK
                Holdings (BVI) Limited

            	
              47.5

            
	
              Rohit
                Phansalkar

            	
              5

            
	
              TOTAL

            	
              100%

            

    

    

    CITIUS
      POWER INDIA

    

    
      	
              Shareholder
                Name

            	
              Number
                of Shares held at Closing

            	
              Percentage
                of Equity Shares held at Closing

            
	
              Citius
                Power Limited, Mauritius

            	
              49,994

            	
              99.99

            
	
              Ravi
                Kailas

            	
              1

            	
              <0.01

            
	
              Charitha
                Kailas

            	
              1

            	
              <0.01

            
	
              Rama
                Krishna Thondepu 

            	
              1

            	
              <0.01

            
	
              Uma
                Thondepu

            	
              1

            	
              <0.01

            
	
              Sree
                Ramlu Kailas

            	
              1

            	
              <0.01

            
	
              Vasudevi
                Kailas 

            	
              1

            	
              <0.01

            
	
              TOTAL

            	
              50,000

            	
              100%

            

    

    

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      II

    

    DEFINITIONS

    

    “Affiliate”
      shall
      mean with respect to any Person, any company, corporation, association or other
      entity, which, directly or indirectly, Controls, is Controlled by or is under
      Common Control with, such Person. If such Person is an individual, the term
      Affiliate shall include the spouse and lineal ascendants and descendants of
      such
      Person;

     

    “Applicable
      Law” shall
      mean any statute, law, regulation, ordinance, rule, judgment, order, decree,
      by-law, approval from the concerned authority, government resolution, directive,
      guideline, policy, requirement, or other governmental restriction or any similar
      form of decision of, or determination by, or any interpretation or adjudication
      having the force of law of any of the foregoing as may from time to time be
      the
      case in the jurisdictions of India, Mauritius, or any other jurisdiction in
      which the Company carries out a material part of its business or in which the
      Company owns any material asset or assets;

     

    “Articles
      of Association” or
      “Articles”
      shall
      mean the Articles of Association of the company, as amended;

     

    “Board
      of Directors” or
      “Board”
      shall
      mean the Board of Directors of the Company in office at applicable times and
      as
      appointed in accordance with the terms of the Shareholders’
Agreement;

     

    “Business
      Day” shall
      mean a day on which the scheduled commercial banks are open for business in
      Mauritius and New York;

     

    “Control”,
      “Controlled” or “Common Control” for
      these
      purposes shall mean the power to direct the management and policies of a Person
      whether through the ownership of over 50% of the voting power of such Person,
      through the power to appoint more than half of the members of the board of
      directors or similar governing body of such Person, through contractual
      arrangements or otherwise; 

     

    “Convertible
      Preference Shares” shall
      mean convertible preference shares of the Company, of face value USD 10 each,
      issued in accordance with the terms and conditions of this Agreement and as
      set
      out in Schedule V;

     

    “Director”
      shall
      mean a director of the Company or his or her alternate director appointed in
      accordance with the provisions of the Shareholders’ Agreement;

     

    “Equity
      Shares” shall
      mean the Class A Ordinary Shares of the Company with no par value;

     

    “Equity
      Shareholders” shall
      mean holders of the Equity Shares;

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    “Fully
      Diluted Basis”
means
      the total of all classes and series of Equity Shares outstanding on a particular
      date, combined with all options (that have been granted), warrants, convertible
      securities of all kinds, including the Convertible Preference Shares, debentures
      or any other arrangements relating to the Company’s equity, and the effect of
      any anti-dilution protection regarding previous financings, all on an “as if
      converted” basis. For the purpose of this definition, “as if converted” basis
      shall mean as if such instrument, option or security had been issued and
      converted into Equity Shares;

     

    “Governmental
      Entity” shall mean
      any
      agency, commission, authority, central bank, department, legislature, minister,
      ministry, official or public, regulatory or statutory Person or state-owned
      organization (whether autonomous or not) of, the government of, that state
      or
      any political sub-division in or of that state, any Person who in any capacity
      whatsoever then owns, holds, administers or controls any of the reserves of
      that
      state, any court, tribunal or judicial body or any other governmental authority
      or instrumentality, in each case, domestic or foreign;

     

    “Group
      Company” shall
      mean and include Citius Power India; 

    

    “IPO”
      shall
      mean an initial public offering of Shares or other securities (including
      depository receipts), either domestic or overseas, of the Company and consequent
      listing of the Shares or other securities of the Company on one or several
      stock
      exchanges, domestic or overseas with minimum offering proceeds of at least
      Rupees 1,500,000,000;

    

    “Liens”
      shall
      mean all mortgages, liens, security interests, charges, easements, leases,
      subleases, covenants, rights of way, options, claims, restrictions or
      encumbrances of any kind;

     

    “Liquidity
      Event” shall
      mean any of: (a) an IPO; or (b) a trade or a strategic sale of the
      Company;

     

    “Memorandum”
      shall
      mean the Memorandum of Association of the company, as amended;

     

    “Person”
      shall
      mean any individual, sole proprietorship, partnership, joint venture, trust,
      unincorporated organization, association, corporation, company, institution,
      public benefit corporation, other entity, government (whether federal, central,
      state, county, city, municipal, local, foreign, or otherwise, including any
      instrumentality, division, agency, body or department thereof), Governmental
      Entity or any other entity that may be treated as a person under Applicable
      Law;

     

    “Rupees”
      or
      “Rs.”
shall
      mean the lawful currency of the Republic of India;

     

    “Share
      Capital” shall
      mean the total paid up share capital of the Company determined on a Fully
      Diluted Basis taking into consideration the Equity Shares, the Convertible
      Preference Shares and any other securities of the Company, entitled to vote
      generally in any General Meeting which is called to seek shareholder approval
      or
      in any other circumstances upon which a vote, consent or other approval
      (including by written consent) is sought from the shareholders of the
      Company;

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    “Shareholders”
      shall
      mean the shareholders of the Company;

     

    “Shareholders’
      Agreement”
      shall
      mean the shareholders’ agreement of even date between the Company, PIAC and the
      Promoters;

     

    “Shares”
      shall
      mean the Equity Shares, the Convertible Preference Shares and any other equity
      securities into which such shares are reclassified or reconstituted;

     

    “Transaction
      Agreements” shall mean
      the
      Shareholders’ Agreement and the Subscription Agreement;

     

    “Transfer”
      shall
      mean to directly or indirectly transfer, sell, assign, pledge, hypothecate,
      create a security interest in or lien on, place in trust (voting or otherwise),
      transfer by operation of law or in any other way subject to any encumbrance
      or
      dispose of, whether or not voluntarily;

     

    “US
      Dollars”
or
      “USD”
or
      “$”
shall
      mean the lawful currency of the United States.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      III

    

    MATERIAL
      CONTRACTS

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IV

    

    SUBSIDIARIES

    

    
      	 	
              1.

            	
              Citius
                Power Limited (“Citius
                Power India”).

            

    

    

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      V

    

    TERMS
      OF ISSUE OF CONVERTIBLE PREFERENCE SHARES 

    

    The
      terms
      of issue contained herein shall apply to the Convertible Preference Shares
      issued at par pursuant to this Agreement.

    

    
      	1.	
              Definitions

            

    

     

    Capitalised
      terms not defined herein shall have the meaning as set out in the
      Agreement.

     

    
      	2.	
              Voting

            

    

     

    The
      Convertible Preference Shares shall be entitled to the same voting rights as
      are
      available to the Equity Shares. 

     

    
      	3.	
              Dividends

            

    

     

    The
      Convertible Preference Shares shall not be entitled to any
      dividend.

     

    
      	4.	
              Conversion

            

    

     

    
      	 	
              (a)

            	
              PIAC
                shall have the right to convert the Convertible Preference Shares,
                at its
                option, at any time after twenty four (24) months following Closing,
                if an
                IPO or any other Liquidity Event has not taken place; provided however,
                the Convertible Preference Shares shall mandatorily convert into
                Equity
                Shares at the time of the IPO or the occurrence of any other Liquidity
                Event, whichever is earlier. 

            

    

     

    
      	 	
              (b)

            	
              The
                Convertible Preference Shares owned by PIAC shall be converted into
                Equity
                Shares in the ratio of 8.25 Equity Shares for every Convertible Preference
                Share, which if converted at Closing would represent 65% of the Share
                Capital. 

            

    

     

    
      	5.	
              Liquidation
                Preference

            

    

     

    
      	 	
              (a)

            	
              Subject
                to Applicable Law (in particular the provisions of the Act), in the
                event
                of a liquidation, dissolution or winding-up (voluntary or otherwise)
                (“Liquidation
                Event”)
                the holders of the Convertible Preference Shares will be entitled
                to
                receive in priority of, and in preference to, the holders of any
                other
                shares of the Company, an amount per Convertible Preference Share
                equal to
                the Aggregate Subscription Price (“Liquidation
                Preference”).

            

    

     

    
      	 	
              (b)

            	
              If,
                upon the occurrence of such a Liquidation Event, the assets of the
                Company
                are not sufficient to permit the payment of the Liquidation Preference
                in
                full to all of the holders of Convertible Preference Shares, then
                the
                entire assets of the Company available for distribution (after repayment
                of debt) shall be distributed rateably among the holders of the
                Convertible Preference Shares.

            

    

     

    
      	6.	
              Notices

            

    

     

    Any
      notice or other communication given or made in respect of the Convertible
      Preference Shares or the exercise of any right in relation to them or any amount
      payable in respect of them shall be given in the same manner as a notice is
      required to be given to the holders of the Convertible Preference Shares
      pursuant to this Agreement.

     

    
      
        
        

      

      
        34CITIUS
      POWER LIMITED

     

    SHAREHOLDERS
      AGREEMENT

     

    March
      1, 2008

     

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    CITIUS
      POWER LIMITED

     

    SHAREHOLDERS
      AGREEMENT

     

    This
      agreement (the “Agreement”)
      is
      entered into as of March 1, 2008 (the “Effective
      Date”)
      by and
      between:

     

    
      	 	
              1.

            	
              Citius
                Power Limited,
                a
                limited liability company incorporated under the laws of the Republic
                of
                Mauritius with a Category 1 Global Business Licence and having its
                registered office at c/o Matco Limited, Suite 137 2nd
                Floor, Harbour Front Building, President John Kennedy Street, Port
                Louis,
                Mauritius (the “Company”);

            

    

     

    
      	 	
              2.

            	
              Phoenix
                India Acquisition Corp.,
                a
                Delaware corporation having its registered office at 590 Madison
                Avenue,
                6th Floor, New York, NY 10022, USA (“PIAC,”
                which expression shall, unless inconsistent with the subject or context,
                be deemed to include its successors and permitted assigns);
                and

            

    

     

    
      	 	
              3.

            	
              The
                persons named in Schedule I hereto (hereinafter referred to collectively
                as the “Existing Shareholders”
                and individually as an “Existing Shareholder”),
                holding the Equity Shares in the Company set forth opposite each
                such
                Existing Shareholder’s name in Schedule I
                hereto.

            

    

     

    The
      Company, PIAC and the Existing Shareholders are hereinafter referred to
      individually as a “Party”
and
      collectively as the “Parties”.

     

    Unless
      the context otherwise requires, all capitalized terms used but not otherwise
      defined herein shall have the meanings set forth in Schedule II. Other terms
      may
      be defined elsewhere in the text of this Agreement and, unless otherwise
      indicated, shall have such meaning throughout this Agreement. All other
      capitalized terms used but not otherwise defined in this Agreement shall have
      the meanings ascribed thereto in the Subscription Agreement.

     

    WHEREAS,

     

    
      	 	
              A.

            	
              The
                Company proposes to allot, issue and deliver to PIAC, and PIAC desires
                to
                subscribe to 4,500,000 (Four Million Five Hundred Thousand Only)
                Convertible Preference Shares pursuant to the Share Subscription
                Agreement
                (the “Subscription
                Agreement”),
                dated as of the date hereof, by and among the Company, PIAC and the
                Promoters; 

            

    

     

    
      	 	
              B.

            	
              In
                connection with the consummation of the Subscription Agreement, the
                Company and the Existing Shareholders have agreed to the registration
                rights, information rights and other governance rights as set forth
                below;
                and

            

    

     

    
      	 	
              C.

            	
              PIAC
                and the Existing Shareholders wish to enter into this Shareholders
                Agreement to regulate their respective rights and obligations as
                Shareholders of the Company upon the terms and subject to the conditions
                hereinafter set forth.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE,
      in
      consideration of the representations, promises and mutual covenants and
      agreements set forth herein, the Parties agree as follows:

     

    
      	
              1.

            	
              Effective
                Date, Purpose And Scope

            

    

     

    Effective
      Date

     

    1.1 This
      Agreement shall come into force and effect from Closing. 

     

    Compliance
      with Agreement

     

    1.2 Subject
      to Applicable
      Law,
      each Shareholder, being a party to this Agreement, shall at all times
      vote and
      act as a shareholder of the Company to fulfill and comply with the provisions
      of this
      Agreement, to satisfy its obligations hereunder and in all other respects to
      comply with, and shall
      use all
      reasonable efforts to cause the Company to comply with, this Agreement. Each
      Shareholder shall, at all times, cause its respective nominee(s) as Director(s)
      to act in accordance with this Agreement, to amend the Memorandum and Articles
      to conform to the purposes and intent of this Agreement, and to cause the
      Company to adopt such amended Memorandum and Articles through the passage of
      appropriate Board and shareholders’ resolutions and to take such other actions
      as may be required under Applicable Law in this regard. The Company shall be
      bound by the provisions of this Agreement to the fullest extent of its capacity
      and power under Applicable Law.

     

    
      	
              2.

            	
              Further
                Subscription

            

    

     

    Further
      Subscription

     

    2.1 Following
      Closing and at any time prior to the occurrence of a Liquidity Event, PIAC
      shall
      have the right to subscribe to any equity securities offered in the first equity
      financing following the Closing for an amount equal to USD 30,000,000 (USD
      Thirty Million Only) on the same terms and conditions applicable to other
      investors in such offering by giving written notice to the Company.

     

    2.2 In
      the
      event that the first equity financing following the Closing is an IPO, PIAC’s
      right to subscribe to equity securities as set out in clause 2.1 above shall
      be
      subject to the consent of the Underwriter(s) of such IPO.

     

    Promoters’
      Subscription Option 

     

    2.3 The
      Company has granted the Promoters’
      Subscription Option to the individual Promoters as set out in Schedule III,
      and
      PIAC agrees and consents to the grant of the Promoters’
      Subscription Option on the terms set out in Schedule III and hereby waives
      any
      rights of first refusal or pre-emption that would otherwise have been available
      to PIAC in respect of any Shares of the Company that are subject to the
Promoters’
      Subscription Option. 

     

    
      	
              3.

            	
              General
                Provisions

            

    

     

    PIAC
      rights 

     

    3.1 The
      Existing Shareholders and the Company hereby agree and confirm that pending
      the
      conversion of the Convertible Preference Shares into Equity Shares, PIAC shall
      be entitled to all the rights and privileges as are outlined in this Agreement
      as if PIAC was a holder of an equal number of Equity Shares in the
      Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Issue
      of Shares by the Company 

     

    3.2 Subject
      to the provisions of Applicable Law and Section 7.1 below, the Board may, from
      time to time, issue and allot at such price and upon such terms as it may
      decide, any Shares of the Company. This shall however be subject to the
      provision that for as long as the Shares are not listed on any stock exchange
      following an IPO, and excluding (i) any Equity Shares issued pursuant to the
      Promoters’
      Subscription Option;
      (ii) any
      Convertible Preference Shares issued to PIAC pursuant to the Subscription
      Agreement and (iii) any Shares in the Company issued in connection with the
      Company’s first financing after Closing (in respect of which PIAC shall have the
      rights set forth in Sections 2.1 and 2.2 above), the Company shall not sell
      or
      otherwise issue to any Person (including, without limitation, any Shareholder)
      any Shares unless (A) the Company complies with this Section 3.2 and (B) prior
      to such issue or sale, each Shareholder shall have received from the Company
      both notice in writing of the terms of the proposed issue and an opportunity
      to
      subscribe to such Shares on the same terms and in an amount up to the product
      of
      such Shareholder’s Percentage Interest and the total number of Shares proposed
      to be issued. If any Shareholder fails to subscribe to such Shares up to the
      full amount of such Shareholder’s entitlement by notice in writing to the
      Company within 30 Business Days from receipt of the notice from the Company
      of
      the proposed issue of such Shares, or, upon subscription, fails to pay the
      Company for the subscribed Shares within such 30 Business Day period, then
      such
      Shareholder shall be deemed to have renounced, in favour of the other
      Shareholders participating in the subscription, its right to subscribe to the
      Shares that it has not subscribed or paid for, and the Company promptly shall
      notify such other participating Shareholders in writing of the number of Shares
      with respect to which the right to subscribe has been deemed renounced pursuant
      to this Section 3.2 and the Shares still available for subscription
      (collectively, the “Remaining
      Shares”).
      Thereafter, each other participating Shareholder shall have a right to subscribe
      to the Remaining Shares in proportion to the Equity Shares arrived at on a
      Fully-Diluted Basis held by such other participating Shareholders divided by
      the
      total Equity Shares arrived
      at on a Fully-Diluted Basis held
      by
      all such other participating Shareholders until the earliest of (i) the
      expiration of 30 Business Days from receipt of notice from the Company of the
      Remaining Shares available for subscription pursuant to the second sentence
      of
      this Section 3.2, (ii) such time when all the Remaining Shares have been
      purchased by such other participating Shareholders and (iii) such time when
      there are no Shareholders willing to purchase any Remaining Shares.
      Notwithstanding any provision in this Agreement to the contrary, if any
      Shareholder is prevented by Applicable Law from purchasing any Shares, such
      Shareholder may designate one or more nominee(s) of such Shareholder to purchase
      such Shares to the extent not prohibited by Applicable Law, provided such
      purchaser agrees to become bound by the terms of this Agreement and
      simultaneously with the purchase of such Shares becomes a party to this
      Agreement. Any Shares that are not purchased by the Shareholders within 30
      Business Days from receipt of the notice from the Company of the Remaining
      Shares available for subscription pursuant to the second sentence of this
      Section 3.2, may be sold by the Company to any proposed purchaser identified
      by
      the Board on such terms and conditions as the Board may deem fit provided that
      such terms and conditions are no more favourable to the proposed purchaser
      than
      those notified by the Company to the Shareholders and provided such purchaser
      agrees to become bound by the terms of this Agreement and simultaneously with
      the purchase of such Shares becomes a party to this Agreement.  

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    Initial
      Public Offering; Registration Rights

     

    
      	3.3	
              (a)
                The
                Promoters and the Company shall use their best efforts to achieve
                a
                Liquidity Event within twenty four 24 months of Closing (if an IPO,
                it
                must be on such recognised stock exchange as is mutually agreed upon
                by
                the Parties in light of prevailing market conditions and the state
                of the
                Company’s business and financial condition). The terms, timing and final
                pricing as well as the selection of the investment banker or merchant
                banker shall be decided upon at a Board meeting of the Company. The
                Convertible Preference Shares shall mandatorily convert into Equity
                Shares
                at the time of the IPO at a rate of 8.25 Equity Shares for every
                Convertible Preference Share in issue (8.25: 1), Accordingly, upon
                conversion of all the Convertible Preference Shares, PIAC will own
                37,142,857 Equity Shares. At Closing the Equity Shareholders will
                own all
                the outstanding Equity Shares aggregating to 20,000,000 (Twenty Million
                Only) shares with a combined value of USD 20,000 (USD Twenty Thousand
                Only). After Closing, PIAC will own 65% of the Shares of the Company
                and
                the Equity Shareholders will own 35% of the Shares of the Company
                on a
                Fully-Diluted Basis. The Company shall bear all costs and expenses
                relating to or in connection with the Liquidity Event (excluding
                underwriters’ fees if the Liquidity Event is an IPO). If the Liquidity
                Event is an IPO, the Company will list the Shares held by PIAC in
                conjunction with, or in any event as soon as possible following,
                such
                IPO.

            

    

     

    (b) Subject
      to the provisions of Applicable Law, in conjunction with or at any time after
      an
      IPO has taken place, PIAC may request, in writing, that the Company effect
      a
      registration of all or any part of the Shares owned by PIAC, consistent with
      the
      jurisdiction of registration and stock exchange listing. Thereupon, the Company
      shall, as expeditiously as possible and at its expense, effect the registration
      of all Shares that the Company has been requested so to register. PIAC’s right
      to request registration pursuant to this Section 3.3 (b) shall be exercisable
      once only.

     

    (c) Subject
      to the provisions of Applicable Law and the final sentence of this Section
      3.3
      (c), at any time after the Company becomes eligible to file a Registration
      Statement relating to secondary offerings, PIAC will have the right to require
      the Company to effect a Registration Statement of all or any portion of the
      Shares held by PIAC by notice. Thereupon, the Company shall, as expeditiously
      as
      possible and at its expense (except for any underwriters fees, which will be
      paid by the sellers in the offering), effect the registration on the applicable
      forms of all Shares that the Company has been requested to register by PIAC.
      PIAC’s right to request registration pursuant to this Section 3.3 (c) shall be
      exercisable once only, and may not be exercised in addition to a registration
      of
      PIAC’s Shares pursuant to Sections 3.3 (a) or 3.3 (b) above.

     

    (d) If
      the
      Company itself or any of its Shareholders (except PIAC) at any time after the
      IPO has taken place requested, in writing, that the Company effect a
      registration of all or any part of the Shares held by them, the Company shall
      on
      each such occasion notify PIAC of such proposed registration. Upon the request
      of PIAC, received in writing within 30 Business Days, the Company shall, as
      expeditiously as possible, effect the registration of all Shares that the
      Company has been requested so to register (“Piggyback
      Registration”).
      The
      Piggyback Registration shall be consistent with the registration by the Company
      that triggered this right. If PIAC decides not to include all of its Shares
      in
      any Piggyback Registration made by the Company, it shall nevertheless continue
      to have the right to include any Shares in any subsequent Piggyback Registration
      as may be made by the Company. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              4.

            	
              Management
                Of The Company

            

    

     

    General

     

    
      	4.1	
              (a) The
                property, business and affairs of the Company shall be managed exclusively
                by and under the direction of the Board. All
                material financial, technical, operational and corporate decisions
                relating to the business of the Company shall be adopted by the
                affirmative vote of a simple majority of the members of the
                Board.

            

    

     

    (b) Subject
      to Section 4.1(a) above, the Promoters shall have the responsibility to manage
      the day to day operations and affairs of the Company and the Group Company.
      The
      Company and the Group Company shall comply and the Promoters shall procure
      that
the
      Company and the Group Company complies with all applicable statutory provisions
      and conducts its business and affairs in accordance with best industry practices
      and strict legal and ethical standards, including, without limitation,
      compliance with contractual terms of clients and other third parties, all
      relevant commercial, tax, labour and other laws and rules and regulations
      relating to commercial, professional and ethical standards. 

     

    (c) PIAC
      shall nominate and replace any person as the Head of Strategy of the Company
      having powers to formulate strategic plans for development of the Company’s
      business.

     

    (d) From
      Closing and till the time an IPO has taken place, the Company shall conduct
      an
      operating review every six months. The Company shall deliver to PIAC the
      findings of such operating review within 15 Business Days from the date of
      the
      review. 

     

    Constitution
      of the Board of Directors 

     

    
      	4.2	
              (a) The
                Company shall have a Board consisting of no more than 7 Directors,
                appointed as follows:

            

    

     

    
      	 	
              (i)

            	
              2
                members nominated by PIAC, such
                nomination to require the prior approval of the Existing Shareholders
                (which shall not be unreasonably withheld or delayed);
                

            

    

     

    
      	 	
              (ii)

            	
              3
                members nominated by the Existing Shareholders, such
                nomination to require the prior approval of PIAC (which shall not
                be
                unreasonably withheld or delayed);
                and

            

    

     

    
      	 	
              (iii)

            	
              2
                Mauritius Board members, provided that such directors are independent
                and
                satisfy the following eligibility criteria: (i) such directors have
                community and professional standing and (ii) such directors are not
                affiliated or associated with any Shareholder.

            

    

     

    (b) The
      Shareholders shall vote the Shares held by them to elect and appoint as
      Directors the individuals nominated by PIAC and the Existing Shareholders in
      accordance with this Agreement. Any person nominated as a Director by a
      Shareholder shall be appointed and may be removed from such office only by
      the
      relevant nominating Shareholder, by a memorandum signed in writing by such
      Shareholder, which shall take effect from the date stated in such memorandum
      or,
      if no such date shall be stated, from the date when such memorandum is lodged
      at
      the registered office of the Company. For the avoidance of doubt, a Director
      shall be removed from office without notice if he is guilty of any gross default
      or misconduct in connection with or affecting the Business, or is guilty of
      fraud, dishonesty or any criminal offence (save for minor road traffic
      offences). 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Committees
      

     

    4.3 Each
      committee/sub-committee of the Board of the Company and the Group Company shall
      be constituted in a manner whereby PIAC and the Existing Shareholders have
      a
      representation on such committee/sub-committee in proportion to their
      representation on the Board of the Company. 

     

    Alternate
      Directors 

     

    4.4 Any
      Director
      appointed to the Board shall be entitled to nominate an alternate to
attend
      and vote at Board meetings in his absence. Such alternate shall be approved
      in
      writing
      by the Shareholder who appointed such nominating Director. 

     

    D&O
      Insurance; Costs 

     

    
      	4.5	
              (a) To
                the extent it is
                available and permissible under Applicable Law, the Promoters shall
                cause
                the Company to, and the Company shall, maintain appropriate insurance
                coverage and provide for standard indemnification provisions in the
                Memorandum and Articles for the Directors, executive officers, and
                other
                officers and representatives of the Company in relation to the discharge
                of their respective duties.

            

    

     

    (b) Subject
      to Applicable Law, the Company shall reimburse Directors for reasonable travel,
      hotel and other expenses incurred in connection with the Board or committee
      meetings or otherwise in working for the Company. 

     

    Meetings
      of Board; Quorum

     

    
      	4.6	
              (a) The
                Board shall hold no less than (i) one meeting every three months
                and (ii)
                four meetings in any given financial year. Such meetings shall be
                held at
                the Company’s registered office or such other place as the Board may from
                time to time determine. No less than 15 calendar days’ prior written
                notice of every meeting of the Board shall be given to every Director
                of
                the Board, whether such Director is based or located in Mauritius
                or
                abroad; provided, however, that, any given meeting of the Board may
                be
                held upon shorter notice if all the Directors waive such notice period.
                Such notice shall be accompanied by the agenda setting out the business
                proposed to be transacted at such meeting of the Board. Any Director
                may
                request the Chairman to call a meeting of the Board. Upon such request,
                the Chairman shall call a meeting of the
                Board.

            

    

     

    (b) Minutes
      of each meeting of the Board shall be taken and kept by the company secretary
      in
      the books of the Company. Copies of the minutes of each such meeting shall
      be
      delivered to each member of the Board as soon as practicable. If a member is
      not
      present at any Board meeting, copies of all documents considered by the Board
      at
      such meeting shall be promptly delivered to him with a copy of the relevant
      minutes.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c) To
      the extent permissible by Applicable Law, any Director may participate in a
      Board meeting by means of a telephone or video conference.

     

    (d) Notwithstanding
      any
      other provisions of this Section 4, a resolution in writing signed by all
Directors
      (which
      resolution may consist of several counterparts) shall be as valid and effective
      as if it had been adopted by a duly convened meeting of the Board.

     

    (e) The
      presence
      in person of at least two (2) Directors on the Board shall be required to
      constitute a quorum at a meeting of the Board or committee thereof; provided,
      however, that no quorum shall exist unless one (1) Director nominated by PIAC,
      and one (1) other Director is present. In the absence of a quorum, the meeting
      of the Board or committee thereof shall be adjourned by the Directors present
      and shall be reconvened 14 days thereafter on the same day, time and place.
      The
      quorum for any adjourned meeting shall be any two (2) Directors present.

     

    (f) Each
      Director on the Board shall have only one vote. The Chairman of the Board shall
      not have a second or casting vote. 

     

    Powers
      of the Directors

     

    
      	4.7	
              (a) Subject
                to the provisions of Section 4.7(b), the Board shall act by majority
                vote.
                For the avoidance of doubt, all
                decisions, actions and resolutions of the Board shall, subject to
                the
                provisions of Section 4.7(b), be adopted by the affirmative vote
                of a
                simple majority of the members of the
                Board.

            

    

     

    (b) Notwithstanding
      any
      other
      provision of this Agreement to the contrary, no
      action
      or decision will be taken by the Board of the Company or the Group Company
      (including by way of passing resolutions by circulation) in respect of any
      of
      the matters listed in Schedule IV hereof without the affirmative vote of a
      Director nominated by PIAC.

     

    (c) A
      Director may from time to time disclose to the Shareholder who appointed him
      and
      its representatives
      such information as he has regarding the Company or its business and operations
      as shall reasonably be requested by the Shareholder appointing him.

     

    
      	
              5

            	
              Shareholder
                Meetings

            

    

     

    General
      Meeting of Shareholders 

     

    5.1 The
      Company shall hold no less than one general meeting of the shareholders in
      any
      given calendar year. Except as provided in this Section 5, all general meetings
      of the shareholders shall be governed by Applicable Law and the Memorandum
      and
      Articles. The Chairman of the Board shall preside at all general meetings of
      the
      Shareholders provided that the Chairman of a general meeting shall not have
      a
      casting vote. If the Chairman is absent or fails to serve as the presiding
      officer at any such general meeting of the shareholders, a Director as may
      be
      mutually agreed by the shareholders shall preside in the Chairman’s place. To
      the extent permissible by Applicable Law, a Shareholder may participate in
      a
      general meeting by means of a telephone or video conference.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Notice
      of Shareholders Meetings 

     

    5.2 Prior
      written notice of 21 calendar days shall be given to the Shareholders for all
      general meetings; provided
      however,
      that any given meeting of the Shareholders may be held upon shorter notice
      if
      all the Shareholders waive such notice period in accordance with the provisions
      of Applicable Law. Such notice shall be accompanied by the agenda setting out
      the business proposed to be transacted at such meeting of the
      Shareholders.

     

    Quorum
      

     

    5.3 The
      quorum for a general meeting of the Shareholders shall be the presence in person
      of at least two (2) Shareholders; provided however, that no quorum shall exist
      until at least one nominee or representative
      appointed or authorized by PIAC is present at the meeting. In the absence of
      a
      quorum, the general meeting shall be adjourned by the Shareholders present
      and
      shall be reconvened on such date, time and place as may be decided by the Board.
      The quorum for any adjourned meeting shall be any two (2) Shareholders present
      in person or through their duly authorised representative. 

     

    Voting
      Requirements

     

    
      	5.4	
              (a) Except
                as required under Applicable Law and subject to Section 5.4(c), the
                vote
                of a majority of the Shareholders of the Company present at a validly
                called meeting (including, without limitation, a reconvened meeting)
                at
                which a quorum is present shall be required for any action to be
                taken by
                the Company’s Shareholders on any matter. At each Shareholders meeting,
                each Shareholder shall have the voting rights available to such
                Shareholders on the basis of the Shares issued to
                them.

            

    

     

    (b) Notwithstanding
      any other provisions of this Section 5, a resolution in writing signed by all
      Shareholders (which resolution may consist of several counterparts) shall be
      as
      valid and effective as if it had been passed at a duly convened Shareholders’
meeting.

     

    (c) The
      Shareholders must approve any proposed Liquidity Event, such approval not to
      be
      unreasonably withheld. Notwithstanding
      any
      other provision of this Agreement to the contrary, no action or decision will
      be
      taken by the shareholders of the Company or the Group Company in respect of
      any
      of the matters
      listed
      in Schedule IV hereof
      without the affirmative vote of an authorized representative of PIAC.

     

    
      	
              6

            	
              Transfer
                Of Shares

            

    

     

    Right
      of First Refusal

     

    
      	6.1	
              (a) Except
                as specified in the last sentence of this Section 6.1(a), with respect
                to
                a right of first refusal applying only to Shares held by RSK Holdings
                (BVI) Limited (“RSK”)
                and DVK Holdings (BVI) Limited (“DVK”),
                as amongst those two Existing Shareholders (or any Permitted Transferee
                of
                such two Existing Shareholders), in the event that any Shareholder
                desires
                to Transfer all or a portion of the Shares held by such Shareholder
                (the
                “Selling
                Shareholder”)
                pursuant to a bona fide offer by any Person (“Offeror”),
                the Selling Shareholder shall immediately deliver a written notice
                (“Offer
                Notice”)
                to all other Shareholders (the “Other
                Shareholder”)
                describing accurately and in reasonable detail the terms and conditions
                of
                the offer, including the timing as to execution, the number of Shares
                subject to the offer (the “Offer
                Shares”)
                and the price to be paid for such Shares pursuant to such offer,
                the name
                and address of the Offeror, any agreements or documents to be executed
                and
                delivered relating to such offer, any related terms and conditions
                and any
                additional information reasonably required by the Other Shareholder.
                Notwithstanding any provision of this Agreement, the Selling Shareholder
                shall not Transfer the Offer Shares to, or enter into any binding
                agreement in respect of the Offer Shares with, the Offeror unless
                and
                until the terms and requirements of Section 6.1(b) through (h) are
                satisfied. Notwithstanding the other terms of this Section 6.1(a)
                and in
                priority to those terms, the Parties agree and acknowledge that RSK
                and
                DVK have agreed amongst themselves that each of them shall have a
                right of
                first refusal upon the proposed transfers of Shares held by the other,
                and
                that such first refusal shall be upon the same terms, mutatis
                mutandis,
                as provided amongst all Shareholders under this Section 6.1 (save
                that RSK
                and DVK may elect to purchase some but not all of the Offer Shares),
                except that it shall only apply with respect to RSK and DVK, or to
                any
                transferee or shareholder of RSK or DVK which is a family member
                or entity
                controlled by a family member of the shareholder of RSK and DVK (such
                person a “Permitted
                Transferee”),
                and only after satisfaction of this right between RSK and DVK (or
                a
                Permitted Transferee) shall the terms of this Section 6.1(a) apply
                to each
                of them (and then only with respect to Shares not transferred pursuant
                to
                this sentence). 

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) Upon
      the Offer Notice being delivered to the Other Shareholder, the Other Shareholder
      shall have the right, exercisable at its sole discretion, to purchase all,
      but
      not less than all, of the Offer Shares on such terms and conditions that are
      no
      less favourable to the Other Shareholder than those specified in the Offer
      Notice in accordance with the terms of Section 6.1(c); 

     

    (c) If
      the Other Shareholder, in its sole discretion, elects to purchase or nominate
      a
      third party to purchase, as applicable, all, but not less than all, of the
      Offer
      Shares pursuant to Section 6.1(b) above, the Other Shareholder shall, within
      the
      time period set forth in the Offer Notice, provided that such period shall
      in no
      event be less than thirty (30) Business Days (the “Offer
      Period”),
      give to the Selling Shareholder a notice in writing exercising its right of
      first refusal (a “RFR
      Notice”).
      If a RFR Notice is provided by the Other Shareholder, the transaction of
      purchase and sale shall be completed by the Other Shareholder within the time
      frame specified in the offer by the Offeror, provided that such period shall
      in
      no event be less than ten (10) Business Days following the expiry of the Offer
      Period, and provided further that such obligation to complete is subject to
      receipt of requisite governmental approvals which approvals shall be promptly
      applied for in good faith.

     

    (d) If
      the Other Shareholder, in its sole discretion, does not exercise its rights
      under Section 6.1(b), and does not, within the Offer Period, provide the RFR
      Notice, the Selling Shareholder may sell the Offer Shares to the Offeror after
      the expiry of the Offer Period, within a period of one (1) month and for a
      price
      and on other terms no more favourable to the Offeror than those contained in
      the
      Offer Notice. If the Offer Shares are not sold within such one month period
      on
      such terms, the rights of the Other Shareholder pursuant to this Section 6.1
      shall again take effect with respect to any sale of Shares of the Company held
      by the Selling Shareholder. 

     

    (e) Notwithstanding
      any provision of this Agreement, the Other Shareholder shall be entitled to
      require reasonable evidence from the Selling Shareholder that the purchase
      and
      sale of the Offer Shares was completed at a price and on other terms no more
      favourable to the Offeror than those contained in the Offer Notice.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (f) All
      notices given under this Section shall also be given concurrently to the
      Company.

     

    (g) The
      Selling Shareholder shall at all times in soliciting or accepting any offers
      from any third party, condition such proposed sale on the execution of a deed
      of
      adherence under which the party to whom any Shares would be sold would agree
      to
      be bound by the provisions of this Agreement. The Offeror shall, as a condition
      to the effectiveness of any Transfer of Shares contemplated in this Section
      6.1,
      deliver to the Company (i) such Offeror’s deed of adherence agreeing to be bound
      by the provisions of this Agreement upon consummation of the Transfer and (ii)
      any other information reasonably requested by the Company. The Selling
      Shareholder and/or the Offeror shall reimburse the Company for all reasonable
      costs and expenses incurred by the Company in connection with any such
      Transfer.

     

    (h) The
      Selling Shareholder shall procure that the Transferee shall enter into a deed
      of
      accession that will cause the Transferee to be bound by the terms of this
      Agreement as though it were a Party hereto. Such deed of accession shall be
      in a
      form reasonably acceptable to the Board. 

     

    Tag-Along
      and Drag-Along Rights of PIAC

     

    
      	6.2	
              (a) If
                any Existing Shareholder proposes to sell its Shares on a bona fide
                arm’s
                length sale to a third party purchaser in accordance with Section
                6.1(d)
                above, it shall not complete such sale unless it ensures that the
                third
                party purchaser offers to buy from PIAC all the Shares held by PIAC
                on the
                same terms (including price per Share) as are applicable to the sale
                of
                the Existing Shareholder’s Shares (the “Tag
                Along Right”).
                The offer shall:

            

    

     

    (i) be
      irrevocable and unconditional (except for any conditions which apply to the
      proposed transfer of the Existing Shareholder’s Shares); 

     

    (ii) fully
      describe all material terms and conditions (including terms relating to price,
      time of completion and conditions precedent) agreed between the Existing
      Shareholder and the third party purchaser; 

     

    (iii) be
      open
      for acceptance by PIAC during a period of not less than twenty-one (21) days
      after receipt of such offer.

     

    If
      the
      offer is accepted by PIAC, the sale shall be conditional upon completion of
      the
      sale of the Existing Shareholder’s Shares to the third party purchaser and shall
      be completed at the same time and on the same terms (including price per Share)
      as are applicable to the sale of the Existing Shareholder’s Shares.

     

    (b) If
      PIAC
      proposes to sell all its Shares on a bona fide arm’s length sale to a third
      party purchaser, it shall have the right to require the Existing Shareholders
      to
      transfer all the Shares held by them to the third party purchaser at the same
      time and on the same terms (including price per Share) as are applicable to
      the
      sale of PIAC’s Shares (the “Drag
      Along Right”).
      If
      such a right is exercised by PIAC, the sale shall be conditional upon completion
      of the sale of PIAC’s Shares to the third party purchaser and shall be completed
      at the same time and on the same terms (including price per Share) as are
      applicable to the sale of PIAC’s Shares. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (c) The
      Tag
      Along Right may be exercised at any time. The Drag-Along Right may be exercised
      by PIAC at any time after 24 months following Closing save that it shall cease
      to be exercisable upon PIAC reducing its holding of Shares in the Company (or
      its holding being diluted by the issuance of Shares in the Company to other
      persons) to no more than 22% of the Share Capital of the Company on a Fully
      Diluted Basis.  

     

    Permitted
      Transfers 

     

    6.3 The
      Parties
      agree that the
      restrictions set forth in this Section 6 with respect to the Transfer of any
      Shares
      shall
      apply to all Transfers except to any Transfer by any Shareholder to its
      Affiliate; provided however, that as a condition to any proposed Transfer to
      an
      Affiliate, such Affiliate must execute a deed of adherence and become a party
      to
      this Agreement and become legally bound by the terms of this Agreement,
      including, but not limited to, the terms of this Section 6.

     

    
      	
              7

            	
              Anti-Dilution;
                Liquidation Preference

            

    

     

    Anti-Dilution

     

    7.1 Except
      for any Shares issued to PIAC pursuant to this Section 7.1, if the Company,
      at
      any time and from time to time after Closing (but only prior to the occurrence
      of a Liquidity Event), issues additional Shares to any Person at a price per
      Share that is lower than the Anti-Dilution Price (such lower price per Share,
      the “Subsequent
      Issue Price”),
      PIAC shall have the right to cause the Company to issue, and the Promoters
      shall
      cause the Company to issue, and the Company shall be obligated to issue, such
      number of additional Shares to PIAC such that the average consideration paid
      by
      PIAC to acquire all the Shares issued to it by the Company till the time of
      such
      issuance (including the Shares acquired by PIAC pursuant to this Section 7.1)
      is
      equal to the Subsequent Issue Price. 

     

    Liquidation
      Preference

     

    7.2 Subject
      to Applicable Law (in particular the provisions of the Act), in the event of
      a
      liquidation, dissolution or winding-up (voluntary or otherwise) (“Liquidation
      Event”)
      the
      holders of the Convertible Preference Shares will be entitled to receive in
      priority of, and in preference to, the holders of any other shares of the
      Company, an amount per Convertible Preference Share equal to the original
      subscription price for each such Convertible Preference Share (“Liquidation
      Preference”).

     

    7.3 If,
      upon
      the occurrence of such a Liquidation Event, the assets of the Company are not
      sufficient to permit the payment of the Liquidation Preference in full to the
      holders of Convertible Preference Shares, then the entire assets of the Company
      available for distribution (after repayment of debt) shall be distributed
      rateably among the holders of the Convertible Preference Shares.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	8	
              Information
                Rights

            

    

     

    Inspection
      

     

    8.1 The
      Company shall permit (i) PIAC, or any authorized representative thereof, to
      visit and inspect the properties of the Company, including its corporate and
      financial records, and to discuss its business finances and accounts with
      officers of the Company, during normal business hours following reasonable
      notice, but no more than once per quarter; provided that the normal functioning
      of the Company shall not in any way be affected.

     

    Financial
      Statements and Other Information

     

    
      
        	8.2	
                (a) The
                  Company shall deliver to
                  PIAC:

              

      

    

     

    (i) within
      ninety (90) days from Closing, and thereafter, within ninety (90) days
      after the end of each fiscal year, beginning with the fiscal year ending [●], an
      audited balance sheet of the Company and the Group Company as at the end of
      such
      year and audited statements of income and of cash flows of the Company and
      the
      Group Company for such year, certified by certified public accountants, and
      prepared in accordance with generally accepted accounting principles
      consistently applied (except as noted) and setting forth in each case in
      comparative form the figures from the previous fiscal year, with an explanation
      of any unusual difference between them, all in reasonable detail. Such financial
      statements shall be accompanied by a report and opinion thereon by independent
      public accountants of international standing selected by the company’s Board of
      Directors and a report by management with a discussion of the business,
      including any changes in the financial condition and any significant business
      developments;

     

    (ii) within
      forty five (45) days after the end of the first, second and third quarterly
      accounting periods in each fiscal year, beginning with the quarter ending [●],
      an unaudited balance sheet of the Company and the Group Company as at the end
      of
      such quarter and unaudited statements of income and of cash flows of the Company
      and the Group Company for such quarter and for the current fiscal year to date,
      prepared in accordance with generally accepted accounting principles
      consistently applied with the exception that no notes need be attached to such
      statements and year-end adjustment need not have been made, and setting forth
      in
      each case in comparative form the figures from the previous fiscal year, with
      an
      explanation of any material differences between them. Such financial statements
      shall be accompanied by a report by management with a discussion of the
      business, including any changes in the financial condition and any significant
      business developments;

     

    (iii) with
      reasonable promptness, such other information and data pertaining to the Company
      and the Group Company and its affairs as PIAC may from time to time reasonably
      request; provided that the cost and expenses relating and incidental to
      preparation of such other information and data shall be borne by the Party
      requesting the same; and

     

    (iv) such
      other notices, information and data with respect to the Company and the Group
      Company as they transmit to the holders of its capital stock at the same time
      it
      transmits such items to such holders.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Material
      Changes and Litigation 

     

    8.3 The
      Company will promptly notify PIAC of any material adverse change in the
      business, properties, assets or condition, financial or otherwise, of the
      Company or the Group Company, and of any event or litigation or governmental
      proceeding or investigation pending or, to the reasonable knowledge of the
      Company, threatened against the Company or the Group Company, or against any
      officer, director, key employee or principal stockholder of the Company or
      the
      Group Company materially affecting, or that, if adversely determined, would
      materially adversely affect, the Company’s or the Group Company’s present or
      then proposed business, properties, assets or condition (financial or
      otherwise), and management’s proposed response thereto, taken as a whole on a
      consolidated basis. 

     

    
      	9	
              Representations
                And Warranties

            

    

     

    Representations
      and Warranties of the Company and the Existing
      Shareholders

     

    
      	9.1	
              (a) The
                Company and each of the Existing Shareholders have full power, capacity
                and authority to execute, deliver and perform this Agreement and
                have
                taken all necessary actions (corporate, statutory or otherwise) to
                accept
                and undertake all the terms and conditions contained in this Agreement
                and
                to authorise the execution, delivery and performance of this Agreement.
                

            

    

     

    (b) PIAC’s
      Shares shall have the same voting rights as the Shares held by the Shareholders.
      

     

    (c) This
      Agreement has been duly and validly authorized, executed and delivered by the
      Company and each
      Existing Shareholder and constitutes its valid and binding obligation,
      enforceable against it in accordance with its terms; 

     

    (d) The
      Company, the Group Company, the Promoters and / or the Existing Shareholders
      are
      not a party to, bound or affected by or subject to any
      indenture, mortgage, lease, agreement, instrument, charter or by-law provision,
      statute, regulation, judgment, decree or law that would be violated,
      contravened, breached by or under which default would occur or under which
      any
      payment or repayment would be accelerated as a result of the execution and
      delivery of this Agreement or the consummation of any of the transactions
      provided for in this Agreement; and

     

    (e) No
      consents or approvals of or filings or registrations with any Governmental
      Authority are necessary, and no consents or approvals of or filings or
      registrations with any third party are necessary, in each case in connection
      with the execution and delivery by, and the consummation of, the transactions
      contemplated hereby except such consents or approvals that have already been
      obtained and filings or registrations that have already been made.

     

    (f) The
      Company, the Group Company, the Promoters and / or the Existing Shareholders
      have
      not
      entered into any agreement, which is currently subsisting, with respect to
      the
      Share Capital of the Company or the Group Company.

     

    Representations
      and Warranties of PIAC

     

    
      	9.2	
              (a) PIAC
                has been duly incorporated and is validly existing and in good standing
                under the laws of the jurisdiction of its
                incorporation;

            

    

     

    (b) Subject
      to obtaining the authorisation of its shareholders required prior to subscribing
      to the Convertible Preference Shares and transferring the funds, PIAC has the
      corporate power and authority to enter into and perform its obligations under
      this Agreement;

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (c) This
      Agreement has been duly and validly authorized, executed and delivered by it
      and
      constitutes its valid and binding obligation, enforceable against it in
      accordance with its terms; and

     

    (d) PIAC
      is not a party to, bound or affected by or subject to any indenture, mortgage,
      lease, agreement, instrument, charter or by-law provision, statute, regulation,
      judgment, decree or law that would be violated, contravened, breached by or
      under which default would occur or under which any payment or repayment would
      be
      accelerated as a result of the execution and delivery of this Agreement or
      the
      consummation of any of the transactions provided for in this
      Agreement.

     

    Company’s
      Representations and Warranties

     

    9.3 The
      Company represents and warrants to and for the benefit of PIAC, and covenants
      with PIAC,
      and the
      Promoters shall procure, that during the term of this Agreement, nothing in
      the
      Memorandum and Articles shall conflict with this Agreement, and that the Company
      shall amend the Memorandum and Articles to ensure that such Memorandum and
      Articles are consistent with this Agreement.

     

    Other
      Covenants

     

    
      	
              9.4

            	
              The
                Parties covenant and agree that any Promoter, the Company or the
                Group
                Company shall not enter into a contract or transaction with an Affiliate
                of any Promoter or any member of the Board of such company without
                first
                fully disclosing the details of the contract or transaction to the
                Board
                of the Company and after obtaining its prior approval.
                

            

    

     

    Survival
      of Representations 

     

    9.5 All
      of
      the representations, warranties and covenants made in this Agreement shall
      survive and continue to be in effect after the execution of this Agreement
      and
      shall be deemed to be continuing and in full force and effect, except that
      no
      Party shall be deemed to have made any representation or warranty in respect
      of
      any facts or circumstances not subsisting at the time of execution of this
      Agreement, nor be required to repeat any representation or warranty except
      to
      the extent specifically agreed in writing by such Party.

     

    
      	10	
              Indemnification;
                Confidentiality

            

    

     

    Indemnification
      

     

    10.1 Each
      Shareholder agrees to indemnify, defend and hold harmless each of the Company,
      the other Shareholder(s), and their respective lawful successors and assigns
      from and against any and all losses, liabilities, claims, damages, costs and
      expenses (including reasonable legal fees and disbursements in connection
      therewith and interest chargeable thereon) asserted against or incurred by
      the
      Company or such other Shareholder(s) that arise out of, result from, or may
      be
      payable by virtue of, any breach or non-performance of any representation,
      warranty, covenant or agreement made or obligation to be performed by the
      indemnifying Shareholder pursuant to this Agreement; provided however, that
      the
      indemnifying Shareholder shall not be liable (whether in contract, tort,
      misrepresentation, warranty, negligence, strict liability or otherwise) for
      any
      special, indirect, incidental or consequential damages arising out of or in
      connection with this Agreement, or any performance, non-performance or breach
      hereof.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Confidentiality
      

     

    10.2 This
      Agreement, the Subscription Agreement and their contents are confidential.
      The
      Parties shall treat all information relating to the other Parties as
      confidential.

     

    No
      Party
      may directly or indirectly make any announcement or disclosure relating to
      any
      confidential information unless:

     

    (a) required
      by applicable law or the rules of any recognised investment exchange; or

     

    (b) the
      information is properly disclosed to the professional advisers, auditors or
      bankers of the disclosing Party, provided that the recipient first agrees not
      to
      disclose the information; or

     

    (c) the
      information is in the public domain, other than through a breach of this
      Section; or

     

    (d) the
      Party
      to which the information relates has consented to the announcement or
      disclosure.

     

    Public
      Announcements 

     

    
      	10.3	
              (a) No
                formal public announcement or press release in connection with the
                signature or subject matter of this Agreement shall (subject to Section
                10.3(b)) be made or issued by, or on behalf of, any Party without
                the
                prior written approval of the other Parties (such approval not to
                be
                unreasonably withheld or delayed).

            

    

     

    (a) If
      a
      Party has an obligation to make or issue any announcement required by law or
      by
      any regulatory body to whose rules it is subject or by any Government Authority,
      the relevant Party shall give the other Parties every reasonable opportunity
      to
      comment on any announcement or release before it is made or issued (provided
      that this shall not have the effect of preventing the party making the
      announcement or release from complying with its legal and/or regulatory
      obligations).

     

    
      	11	
              Miscellaneous

            

    

     

    Conflict
      with Memorandum and Articles 

     

    11.1 If
      there is any ambiguity, inconsistency or conflict between the provisions of
      the
      Memorandum and Articles (as amended in accordance with the terms hereof through
      the date when such ambiguity, conflict or inconsistency arises or is deemed
      to
      arise) and this Agreement, such ambiguity, inconsistency or conflict shall
      be
      resolved by giving precedence to the provisions of the Memorandum and Articles
      over this Agreement and the Parties promptly shall
      take all such actions and steps as are necessary to amend the Memorandum and
      Articles to eliminate such inconsistency or conflicting provision or term from
      the Memorandum and Articles and to replace it with a provision or term that
      is
      consistent with the provisions of this Agreement. In the meantime, while any
      such amendments to the Memorandum and Articles are pending, no Party hereto
      shall seek to enforce the provision of the Memorandum and Articles that is
      being
      amended so as to avoid inconsistency with the provisions hereof.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Termination

     

    
      	11.2	
              (a) This
                Agreement shall terminate upon:

            

    

     

    
      	
            	(i)	
              The
                written agreement of the Parties;

            

    

     

    
      	
            	(ii)	
              The
                dissolution, liquidation or winding up of the Company;
                

            

    

     

    
      	 	
              (iii)

            	
              Prior
                to the Closing, any
                breach by any of the Parties (the “Defaulting
                Party”)
                of any of their representations and warranties, undertakings, obligations
                and/or covenants in this Agreement or a default in compliance with
                the
                terms and conditions of this Agreement which is not cured within
                45 days
                of notice thereof being given to the Defaulting Party by the
                non-defaulting Party (“Non-Defaulting
                Party”);
                or

            

    

     

    
      	
            	(iv)	
              The
                occurrence of a Liquidity Event. 

            

    

     

    
      
        (b)
          Upon
          the
          occurrence of any of the events set out in Section 11.2(a)(iii) above,
          the
          Non-Defaulting Party shall be entitled to terminate this Agreement in relation
          to any other Party by notice in writing to the other Parties. 

      

    

     

    (c) The
      termination of this Agreement shall not discharge, affect or otherwise modify
      the rights and obligations of the Parties established or incurred prior to
      such
      termination. Notwithstanding anything to the contrary, the provisions in this
      Agreement relating to Indemnification, Confidentiality; Arbitration; Notices;
      Governing Law and other representations, warranties, covenants and obligations
      which by their nature are intended to survive shall survive the termination
      of
      this Agreement. 

     

    
      
        (d)
          Except
          as provided in Section 11.2(c) above, the rights and obligations of a
          Shareholder hereunder shall automatically terminate from the time such
          Shareholder no longer owns or holds any Shares in the Company, either directly
          or through its Affiliates. 

      

    

     

    No
      Partnership

     

    11.3 The
      Parties
      hereto agree that nothing in this Agreement shall be deemed to create a
      partnership, agency or any other relationship between them, except as otherwise
      expressly stated herein.

     

    Rights
      of Inspection and Audit 

     

    11.4 PIAC
      shall have reasonable access upon the provision of prior written notice of
      at
      least 15 Business Days, to examine, inspect and audit, at its own expense,
      the
      books, records and accounts of the Company during normal business hours.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Notices
      

     

    
      	
              11.5

            	
              Notices,
                demands or other communication required or permitted to be given
                or made
                under this Agreement shall be in writing and delivered by hand or
                sent by
                prepaid post with recorded delivery or by telefax to the intended
                recipient at its address set forth herein, or to such other address
                or
                telefax number as each Party may from time to time duly notify to
                the
                others:

            

    

     

    if
      to the
      Company: Citius Power Limited, c/o
      Matco
      Limited, Suite 137 2nd Floor, Harbour Front Building, President John Kennedy
      Street, Port Louis, Mauritius. Fax +230 213 6861 Attn: Mr. Bruno Hardy;

     

    with
      a
      copy to: Mr. L. Keith Hughes, Dewey & LeBoeuf, No.1 Minster Court, Mincing
      Lane, London EC3R 7YL, UK. Fax: +44 20 7444 7305 (Attn: Mr. L. Keith
      Hughes);
      

     

    if
      to
      PIAC: 590 Madison Avenue, 6th Floor, New York, NY 10022, USA , Fax + 1 646
      224
      8019 Attn: Mr. Ramesh Akella;

     

    if
      to the
      Existing Shareholders: Mr.
      Ravi
      Kailas and Mr. Deepak Kochhar, 618 Maker Chambers V, Nariman Point, Mumbai
      400021, India. Fax: +91 22 2287 5584.

     

    Any
      such
      notice, demand or communication shall, unless the contrary is proved, be deemed
      to have been duly served at the time of delivery in the case of service by
      delivery in person or by post, and at the time of dispatch in the case of
      service telefax. For the avoidance of doubt, electronic mail shall not be a
      valid means of making a communication required by this Section. 

     

    Governing
      Law 

     

    11.6 This
      Agreement shall be governed and interpreted by, and construed in accordance
      with
English
      law.

     

    Arbitration 
      

     

    
      	11.7	
              (a) Any
                and all disputes or differences, arising out of or in connection
                with this
                Agreement or its performance shall, so far as it is possible, be
                settled
                amicably through consultation between the disputing
                Parties.

            

    

     

    (b) If
      after
      30 (thirty) days of consultation, the disputing Parties have failed to reach
      an
      amicable settlement, on any or all disputes or differences arising out of or
      in
      connection with this Agreement or its performance, such disputes or differences
      shall be submitted to final and binding arbitration at the request of any of
      the
      disputing Parties upon written notice to that effect to the
      other(s).

     

    (c) Such
      arbitration shall be in accordance with the Rules of Conciliation and
      Arbitration of the International Chamber of Commerce and shall be held in
      London. All proceedings of such arbitration shall be in the English
      language.

     

    (d) The
      arbitration panel shall consist of three arbitrators, one each appointed by
      the
      disputing Parties and the two arbitrators so appointed shall agree on a
      chairman. 

     

    (e) The
      applicable procedural rules shall be the Rules of Conciliation and Arbitration
      of the International Chamber of Commerce.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (f) Arbitration
      awards rendered shall be final and binding and shall not be subject to any
      form
      of appeal. The losing Party shall pay all reasonable out-of-pocket expenses
      (including, without limitation, reasonable attorneys’ fees) incurred by the
      prevailing Party(ies), as determined by the arbitrators, in connection with
      any
      dispute unless the arbitrators direct otherwise.

     

    (g) Any
      controversy concerning whether a dispute is an arbitrable dispute, whether
      arbitration has been waived or as to the interpretation or enforceability of
      this Section 11.7 shall be determined by the arbitration panel.

     

    Expenses 
      

     

    11.8 Each
      Party
      shall
      bear its own expenses incurred in connection with this Agreement, including
      all
      professional and advisory fees.

     

    Survival
       

     

    11.9 The
      representations,
      warranties, covenants and agreements made in this Agreement shall survive and
      shall not be limited or otherwise affected by or as a result of any
      investigation made by any Party hereto and the closing of the transactions
      contemplated hereby. 

     

    Assignment;
      Benefit; Amendment and Waivers 

     

    
      	11.10	
              (a) Subject
                to the provisions of the Subscription Agreement, the rights and
                obligations hereunder shall not be assignable without the prior written
                consent of the other Parties except that PIAC may assign its rights,
                obligations and duties hereunder to any of its Affiliates that is
                financially capable of fulfilling PIAC’s obligations under this Agreement
                and the Subscription Agreement, and which enters into a deed of accession
                to be bound by the terms of this Agreement as though it were a Party
                hereto, such deed to be in a form reasonably acceptable to the Board,
                without consent of the other Parties; provided
                that the assignee is bound by the Shareholders Agreement. Each of
                the
                Parties understands, acknowledges and hereby affirms that such assignment
                may be by novation that will release PIAC from all of its obligations
                and
                duties hereunder. 

            

    

     

    (b) This
      Agreement shall be binding upon and shall inure to the benefit of the Parties
      hereto, and their respective successors and permitted assigns, and there shall
      be no third-party beneficiaries to this Agreement.

     

    (c) No
      amendment or waiver of any provision of this Agreement will be valid and binding
      unless it is in writing and signed, in the case of an amendment, by each Party
      or, in the case of waiver, by the Party against whom the waiver is to be
      effective. 

     

    Entire
      Agreement  

     

    11.11 This
      Agreement
      supersedes all prior discussions and agreements (whether oral or written,
      including all correspondence), if any, between the Parties with respect to
      the
      subject matter of this Agreement, and this Agreement (together with any
      amendments or modifications thereof) contains the sole and entire agreement
      between the Parties hereto with respect to the subject matter hereof, subject
      to
      the Subscription Agreement. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Severability
      

     

    11.12 Any
      provision of this Agreement which is invalid or unenforceable shall be
      ineffective to the extent of such invalidity or unenforceability, without
      affecting in any way the remaining provisions hereof.

     

    Counterparts 
      

     

    11.13 This
      Agreement may be executed in any number of counterparts, all of which together
      shall constitute a single instrument. 

     

    Specific
      Performance  

     

    11.14 This
      Agreement shall be specifically enforceable at the instance of any Party. The
      Parties agree that any Party not in default will suffer immediate, material,
      immeasurable, continuing and irreparable damage and harm in the event of any
      material breach of this Agreement and the remedies at law in respect of such
      breach will be inadequate (each Party hereby waives the claim or defense that
      an
      adequate remedy at law is available) and that such Party shall be entitled
      to
      seek specific performance against the Party in default for performance of its
      obligations under this Agreement in addition to any and all other legal or
      equitable remedies available to it.

     

    Further
      Actions 

     

    11.15 Each
      of
      the Parties shall execute and deliver all such future instruments and take
      such
      other and further action as may be reasonably necessary or appropriate to carry
      out the provisions of this Agreement and the intention of the Parties as
      expressed herein.

     

    Third
      Party Rights 

     

    11.16 No
      Person
      other than a Party may enforce this Agreement by virtue of the Contracts (Rights
      of Third Parties) Act 1999.

     

    Headings;
      Schedules 

     

    11.17 All
      Article and Section headings herein are for convenience of reference only and
      are not part of this Agreement, and no construction or inference shall be
      derived therefrom. The Schedules attached hereto and referred to herein are
      a
      part of this Agreement as if fully set forth herein. All references to Sections
      and Schedules shall be deemed references to such parts of this Agreement, unless
      the context shall otherwise require.

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have entered into this Agreement the day and year first above
      written.

     

    
      	
              Citius
                Power Limited

            
	 	 
	
              By:
                

            	/s/
              Ravi
              Kailas           
              
	
              Name:

            	Ravi
              Kailas           
              
	
              Title:

            	CEO
	 	 
	 	 
	
              Phoenix
                India Acquisition Corp.

            
	 	 
	
              By:
                

            	/s/
              Ramesh S. Akella
	
              Name:

            	Ramesh
              S. Akella
	
              Title:

            	President
	 	 
	
              RSK
                Holdings (BVI) Limited

            
	 	 
	
              By:
                

            	/s/
              Ravi
              Kailas           
              
	
              Name:

            	Ravi
              Kailas           
              
	
              Title:

            	 
	 	 
	
              DVK
                Holdings (BVI) Limited

            
	 	 
	
              By:
                

            	/s/
              Deepak Kochnar    
	
              Name:

            	Deepak
              Kochnar    
	
              Title:

            	Sole
              Director
	 	 
	
              Rohit
                Phansalkar

            
	
              /s/
                Rohit Phansalkar

            

    

    

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      I

     

    EXISTING
      SHAREHOLDERS

    

    
      	
               

              Name

            	
              Holding
                of Equity Shares on Effective Date (%)

            
	
              RSK
                Holdings (BVI) Limited

            	
              47.5

            
	
              DVK
                Holdings (BVI) Limited

            	
              47.5

            
	
              Rohit
                Phansalkar

            	
              5

            
	
              TOTAL

            	
              100%

            

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      II

     

    DEFINITIONS

     

    “Anti-Dilution
      Price”
      shall mean the average consideration paid by PIAC to acquire all the Shares
      issued to it by the Company;

     

    “Consolidated
      Interest Expense”
shall
      mean, for any period, the total interest expense (net of interest income) of
      the
      Company;

     

    “Consolidated
      Net Income”
shall
      mean, for any period, the net income (loss) (including cash and non-cash
      charges) of the Company; provided,
      however,
      that
      there shall not be included in such Consolidated Net Income: (i) any gain (or
      loss) realized upon the sale or other disposition of any assets of the Company
      (including pursuant to any sale-and-leaseback arrangement), except sales or
      dispositions of inventory or fixed assets in the ordinary course of business;
      (ii) interest income; and (iii) extraordinary gains or losses;

     

    “Drag
      Along Right”
      has the
      meaning given to such term in Section 6.2(b);

    

    “EBITDA”
shall
      mean, with respect to the Company for any period, an amount equal to the sum
      of
      (i) Consolidated Net Income for such period plus (ii) the following amounts
      for
      such period, in each case, to the extent deducted in calculating Consolidated
      Net Income for such period: (w) the provision for income taxes; (x) Consolidated
      Interest Expense; (y) depreciation; and (z) amortization; it being understood
      that such amount shall be calculated on a consolidated basis;

     

    “Further
      Subscription”
means
      the subscription by PIAC to the Convertible Preference Shares in accordance
      with
      Section 2 above;

    

     

    “Percentage
      Interest”
      means, with respect to any Shareholder and as of any date, a number equal to
      a
      fraction, the numerator of which is the number of Equity Shares arrived at
      on a
      Fully-Diluted Basis owned by such Shareholder as of such date and the
      denominator of which is the total number of Equity Shares arrived at on a
      Fully-Diluted Basis then issued and outstanding; 

     

    

    “Registration
      Statement”
      means a
      registration statement or prospectus filed by the Company with the relevant
      Governmental Authority for a public offering and sale of securities of the
      Company (other than a registration statement in any form for a limited purpose,
      any registration statement covering only securities proposed to be issued in
      exchange for securities or assets of another corporation or a registration
      statement solely for the purpose of registering shares issued in a
      non-underwritten offering in connection with a merger, combination or
      acquisition); 

    

    “Subscription
      Agreement”
has
      the
      meaning assigned to such term in the recitals to this Agreement;

    

    “Tag
      Along Right”
      has the
      meaning given to such term in Section 6.2(a).

     

    
      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      III

     

    PROMOTERS’
      SUBSCRIPTION OPTION

    

    1. The
      Company has granted the Promoters, in proportion to their shareholding in the
      Company at Closing, options (collectively, the “Promoters’
      Subscription Options”)
      pursuant to which the Promoters may subscribe to such number of Equity Shares
      (the “Earn
      Out Shares”),
      on
      the terms and conditions set forth below. The Promoters’ Subscription Option may
      be exercised by each Promoter on the two exercise dates specified below, if
      the
      conditions to such exercise have been satisfied. The ownership percentage
      reflected in this Schedule III will be diluted, proportionate to the ownership
      percentage of PIAC and the Existing Shareholders prior to exercise of the
      Promoters’ Subscription Options in the event of the additional subscription for
      Shares by a third party (and issuance of those additional Shares to such third
      party) after Closing and prior to exercise of the Promoters’ Subscription
      Option. 

     

    The
      first
      Promoters’ Subscription Option may be exercised by the Promoters within 15
      months after the conditions set forth in paragraph 5 below have been satisfied.
      The second Promoters’ Subscription Option may be exercised by the Promoters
      within 12 months after the conditions set forth in paragraph 6 below have been
      satisfied. 

     

    2. In
      the
      event the Promoters desire to exercise the Promoters’ Subscription Option in
      accordance with paragraph 1 above, the Promoters shall issue a notice to the
      Company for the issuance of the Earn Out Shares (the “Exercise Notice”).
      

     

    3. The
      Company shall within 5 Business Days of receipt of an Exercise Notice and
      payment of the par value and / or the exercise price in full for the Earn Out
      Shares that are subject of such Exercise notice, allot, issue and deliver the
      Earn Out Shares to the Promoters free from Liens and with full legal and
      beneficial ownership and with all rights attaching to the Shares.

     

    4. The
      Company shall on the date of allotting the Earn Out Shares deliver to the
      Promoters a certificate duly stamped and registered in its name representing
      the
      number of Shares that the Promoters are subscribing. 

     

    5. If,
      at
      the end of the fifteenth (15th)
      month
      after Closing, the Company owns, directly or indirectly, assets with generation
      capacity of more than 55 MW, and the Company and/or any subsidiary of the
      Company has entered into Memorandums of Understanding to acquire, or has under
      contract for acquisition, as noted by the Board, assets which would once
      acquired provide, in aggregate, an additional 200 MW of generation capacity
      (with a permissible variance of 20%), the Promoters shall be entitled to
      purchase a) 100,000 Shares per MW increase in owned generating capacity in
      excess of 55 MW, a maximum of 4,000,000 Shares at no cost and b) 125,000 shares
      per MW increase in owned generating capacity in excess of 55 MW a maximum of
      5,000,000 Shares at a purchase price of $1.40 per share. 

     

    6. If
      at the
      end of the twenty-seventh (27th)
      month
      after Closing, the Company owns, directly or indirectly, assets with generation
      capacity of more than 105 MW, and the Company and/or any subsidiary of the
      Company has entered into Memorandums of Understanding to acquire, or has under
      contract for acquisition, as noted by the Board, assets which would once
      acquired provide, in aggregate, an additional 300 MW of generation capacity
      (with a permissible variance of 20%), then the Promoters shall be entitled
      to
      purchase a) 250,000 Shares per MW increase in owned generating capacity in
      excess of 105 MW, a maximum of 7,50,000 Shares at no cost and b) 250,000 Shares
      per MW increase in owned generating capacity in excess of 105 MW, a maximum
      of
      7,500,000 Shares at a purchase price of $1.50 per Share.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    7. The
      following table shows the shareholding position on a Fully Diluted Basis
      subsequent to all the Earn Out Shares being earned and issued following full
      exercise by the Promoters of the Promoters’ Subscription Options and further
      assuming that all Convertible Preference Shares are converted:

     

    
      	
              At
                Closing

            
	 	
              Number
                of Shares

            	
              Price
                per Share

            	
              Percent
                Ownership

            
	
              PIAC
                Shares (as if converted)

            	
              37,142,857

            	
              $1.22

            	
              65%

            
	
              Promoters
                Shares

            	
              20,000,000

            	 	
              35%

            
	
              Exercise
                of Maximum First Promoters’ Subscription Option

            
	
              Promoters
                First Subscription Option 

            	
              4,000,000

            	 	 
	
              Promoters
                First Subscription Option

            	
              5,000,000

            	
              $1.40

            	 
	
              Exercise
                of Maximum Second Promoters’ Subscription Option

            
	
              Promoters
                Second Subscription Option 

            	
              7,500,000

            	 	 
	
              Promoters
                Second Subscription Option

            	
              7,500,000

            	
              $1.50

            	 
	
              Final
                Share Position after Exercise of Maximum of all Promoters’ Subscription
                Options

            
	
              PIAC
                Shares (as if converted)

            	
              37,142,857

            	 	
              45.76%

            
	
              Promoter
                Shares 

            	
              44,000,000

            	 	
              54.23%

            

    

    

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

     

    SCHEDULE
      IV

     

    MATTERS
      WHICH REQUIRE THE AFFIRMATIVE VOTE OF PIAC UNDER SECTION 4.7(b) and SECTION
      5.4(c)

     

    
      	 	
              i.

            	
              altering
                the Memorandum and/or the Articles;

            

    

     

    
      	 	
              ii.

            	
              creating
                any Lien over the whole or any part of the share capital of the
                Company;

            

    

    

    
      	 	
              iii.

            	
              payment
                of dividends on the shares;

            

    

    

    
      	 	
              iv.

            	
              buying
                back its paid up share capital;

            

    

    

    
      	 	
              v.

            	
              changing
                the number of Convertible Preference Shares, changing any rights,
                preferences or privileges attaching to such Convertible Preference
                Shares
                or taking any action which materially affects only the Convertible
                Preference Shares;

            

    

    

    
      	 	
              vi.

            	
              any
                redemption, repurchase, or other acquisition for value of any of
                the
                Existing Shareholders’ Shares;

            

    

    

    
      	 	
              vii.

            	
              materially
                changing the nature or scope of the business or purpose of the
                company;

            

    

    

    
      	 	
              viii.

            	
              merging,
                de-merging, selling, transferring, leasing, assigning or otherwise
                disposing of the whole or a significant part of its undertaking,
                property
                or assets;

            

    

    

    
      	 	
              ix.

            	
              entering
                into any material agreement with a third party outside the ordinary
                course
                of business or entering into any agreement or arrangement purporting
                to
                commit PIAC to do the same or provide any security or guarantee in
                relation thereto; and

            

    

    

    
      	 	
              x.

            	
              entering
                into or varying any transaction with (i) a shareholder or (ii) any
                Affiliate of a shareholder, other than in the ordinary course of
                business.

            

    

    

      
        
          
          

        

        
          26

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