STOCK AND UNIT ESCROW AGREEMENT

EXHIBIT 10.6

STOCK ESCROW AGREEMENT, dated as of ___, 2005 (“Agreement”), by and among INDIA GLOBALIZATION CAPITAL, INC., a Maryland corporation (“Company”), RAM ▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇, RANGA KRISHNA and those other persons named on Exhibit A hereto (collectively, the “Initial Stockholders”) and CONTINENTAL STOCK TRANSFER & TRUST COMPANY, a New York corporation (“Escrow Agent”).

WHEREAS, the Company has entered into an Underwriting Agreement, dated ___, 2005 (“Underwriting Agreement”), with ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, Inc. (“FBW”) acting as representative of the several underwriters (collectively, the “Underwriters”), pursuant to which, among other matters, the Underwriters have agreed to purchase 9,830,000 units (“Units”) of the Company. Each Unit consists of one share of the Company’s Common Stock, par value $.0001 per share, and two Warrants, each Warrant to purchase one share of Common Stock, all as more fully described in the Company’s final Prospectus, dated ___, 2006 (“Prospectus”) comprising part of the Company’s Registration Statement on Form S-1 (File No. -___) under the Securities Act of 1933, as amended (“Registration Statement”), declared effective on ___, 2006 (“Effective Date”).

WHEREAS, the Initial Stockholders have agreed as a condition of the sale of the Units to deposit their shares of Common Stock of the Company, as set forth opposite their respective names in Exhibit A attached hereto (collectively “Escrow Shares”), in escrow as hereinafter provided.

WHEREAS, the Company and the Initial Stockholders desire that the Escrow Agent accept the Escrow Shares, in escrow, to be held and disbursed as hereinafter provided.

WHEREAS, pursuant to the terms of a Unit Purchase Agreement (“UPA”), Ram ▇▇▇▇▇▇▇ (“▇▇▇▇▇▇▇”) has agreed to purchase 166,667 Units (the “IPO Units”) in the initial public offering by the Company of its securities (the “IPO”) and deposit the IPO Units in escrow as hereinafter provided.

IT IS AGREED:

1. APPOINTMENT OF ESCROW AGENT. The Company and the Initial Stockholders hereby appoint the Escrow Agent to act in accordance with and subject to the terms of this Agreement and the Escrow Agent hereby accepts such appointment and agrees to act in accordance with and subject to such terms. Capitalized terms used in this Agreement but not defined herein will have the meanings set forth in the Registration Statement.

2. DEPOSIT OF ESCROW SHARES INTO ESCROW.

2.1 ESCROW SHARES. On or before the Effective Date, each of the Initial Stockholders shall deliver to the Escrow Agent certificates representing his respective Escrow Shares, to be held and disbursed subject to the terms and conditions of this Agreement. Each Initial Stockholder acknowledges that the certificate representing his Escrow Shares is legended to reflect the deposit of such Escrow Shares under this Agreement.

2.2 IPO UNITS. On the consummation of the IPO ▇▇▇▇▇▇▇ shall deliver to the Escrow Agent certificates representing the IPO Units to be held and disbursed subject to the terms and conditions of this Agreement.

3. DISBURSEMENT OF THE ESCROW SHARES.

3.1 The Escrow Agent shall hold the Escrow Shares until the one hundred eightieth day following the consummation by the Company of a Business Combination (“Escrow Period”), on which date it shall, upon written instructions from each Initial Stockholder, disburse each of the Initial Stockholder’s Escrow Shares to such Initial Stockholder; provided, however, that if the Escrow Agent is notified by the Company pursuant to Section 3.3 hereof that the Company is

being liquidated at any time during the Escrow Period, then the Escrow Agent shall promptly destroy the certificates representing the Escrow Shares; provided further, however, that if, after the Company consummates a Business Combination (as such term is defined in the Registration Statement), it (or the surviving entity) subsequently consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the stockholders of such entity having the right to exchange their shares of Common Stock for cash, securities or other property, then the Escrow Agent will, upon receipt of a certificate, executed by the Chief Executive Officer or Chief Financial Officer of the Company, in form reasonably acceptable to the Escrow Agent, that such transaction is then being consummated, and release the Escrow Shares to the Initial Stockholders upon consummation of the transaction so that they can similarly participate. The Escrow Agent shall have no further duties hereunder after the disbursement or destruction of the Escrow Shares and the IPO Units in accordance with this Section 3.

3.2 The Escrow Agent shall hold the IPO Units until the third business day following receipt of the certificate referred to in Section 3.3 hereof, on which date it shall, upon written instructions from ▇▇▇▇▇▇▇ and/or his designee(s), as appropriate, disburse the IPO Units to ▇▇▇▇▇▇▇ or his designee(s); provided, however, that if the Escrow Agent is notified by the Company pursuant to Section 3.4 hereof that the Company is being liquidated at any time prior to disbursement of the IPO Units, then the Escrow Agent shall promptly destroy the certificates representing the IPO Units; provided further, however, that if, after the Company consummates a Business Combination (as such term is defined in the Registration Statement), it (or the surviving entity) subsequently consummates a liquidation, merger, stock exchange or other similar transaction which results in all of the stockholders of such entity having the right to exchange their shares of Common Stock for cash, securities or other property, then the Escrow Agent will, upon receipt of a certificate, executed by the Chief Executive Officer or Chief Financial Officer of the Company, in form reasonably acceptable to the Escrow Agent, that such transaction is then being consummated, release the IPO Units to ▇▇▇▇▇▇▇ or his designee(s) upon consummation of the transaction so that he or they can similarly participate.

3.3 CONSUMMATION OF A BUSINESS COMBINATION. Within thirty (30) days after the consummation by the Company of a Business Combination, the Company shall deliver to the Escrow Agent a certificate executed by the Chief Executive Officer or the Chief Financial Officer, in form reasonably acceptable to the Escrow Agent, stating that a Business Combination has been consummated, the date of the Business Combination shall have been consummated and the date that is one hundred eighty days after the date of consummation of a Business Combination.

3.4 LIQUIDATION OF THE COMPANY. The Company shall give the Escrow Agent written notification of the liquidation and dissolution of the Company in the event that the Company fails to consummate a Business Combination within the time period(s) specified in the Prospectus.

4. RIGHTS OF INITIAL STOCKHOLDERS IN ESCROW SHARES.

4.1 VOTING RIGHTS AS A STOCKHOLDER. Subject to the terms of the Insider Letter described in Section 4.4 hereof and except as herein provided, the Initial Stockholders shall retain all of their rights as stockholders of the Company during the Escrow Period, including, without limitation, the right to vote such shares.

4.2 DIVIDENDS AND OTHER DISTRIBUTIONS IN RESPECT OF THE ESCROW SHARES. During the Escrow Period, all dividends payable in cash with respect to the Escrow Shares and the IPO Units shall be paid to the Initial Stockholders, but all dividends payable in stock or other non-cash property (“Non-Cash Dividends”) shall be delivered to the Escrow Agent to hold in accordance with the terms hereof. As used herein, the term “Escrow Shares” and “IPO Units” shall be deemed to include the Non-Cash Dividends distributed thereon, if any.

4.3 RESTRICTIONS ON TRANSFER. During the Escrow Period, no sale, transfer or other disposition may be made of any or all of the Escrow Shares or the IPO Units except (i) by gift to a member of Initial Stockholder’s immediate family or to a trust, the beneficiary of which is an Initial Stockholder or a member of an Initial Stockholder’s immediate family, (ii) by virtue of the laws of descent and distribution upon death of any Initial Stockholder, or (iii) pursuant to a qualified domestic relations order; provided, however, that such permissive transfers may be implemented only upon the respective transferee’s written agreement to be bound by the terms and conditions

of this Agreement and of the Insider Letter signed by the Initial Stockholder transferring the Escrow Shares or the IPO Units. During the Escrow Period, the Initial Stockholders shall not pledge or grant a security interest in the Escrow Shares or the IPO Units or grant a security interest in their rights under this Agreement.

4.4 INSIDER LETTERS. Each of the Initial Stockholders has executed a letter agreement with FBW and the Company, dated as indicated on Exhibit A hereto, and which is filed as an exhibit to the Registration Statement (“Insider Letter”), respecting the rights and obligations of such Initial Stockholder in certain events, including but not limited to the liquidation of the Company.

5. CONCERNING THE ESCROW AGENT.

5.1 GOOD FAITH RELIANCE. The Escrow Agent shall not be liable for any action taken or omitted by it in good faith and in the exercise of its own best judgment, and may rely conclusively and shall be protected in acting upon any order, notice, demand, certificate, opinion or advice of counsel (including counsel chosen by the Escrow Agent), statement, instrument, report or other paper or document (not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth and acceptability of any information therein contained) which is believed by the Escrow Agent to be genuine and to be signed or presented by the proper person or persons. The Escrow Agent shall not be bound by any notice or demand, or any waiver, modification, termination or rescission of this Agreement unless evidenced by a writing delivered to the Escrow Agent signed by the proper party or parties and, if the duties or rights of the Escrow Agent are affected, unless it shall have given its prior written consent thereto.

5.2 INDEMNIFICATION. The Escrow Agent shall be indemnified and held harmless by the Company from and against any expenses, including counsel fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim which in any way, directly or indirectly, arises out of or relates to this Agreement, the services of the Escrow Agent hereunder, or the Escrow Shares and the IPO Units held by it hereunder, other than expenses or losses arising from the gross negligence or willful misconduct of the Escrow Agent. Promptly after the receipt by the Escrow Agent of notice of any demand or claim or the commencement of any action, suit or proceeding, the Escrow Agent shall notify the other parties hereto in writing. In the event of the receipt of such notice, the Escrow Agent, in its sole discretion, may commence an action in the nature of interpleader in an appropriate court to determine ownership or disposition of the Escrow Shares and the IPO Units or it may deposit the Escrow Shares and the IPO Units with the clerk of any appropriate court or it may retain the Escrow Shares and the IPO Units pending receipt of a final, non-appealable order of a court having jurisdiction over all of the parties hereto directing to whom and under what circumstances the Escrow Shares and the IPO Units are to be disbursed and delivered. The provisions of this Section 5.2 shall survive in the event the Escrow Agent resigns or is discharged pursuant to Sections 5.5 or 5.6 below.

5.3 COMPENSATION. The Escrow Agent shall be entitled to reasonable compensation from the Company for all services rendered by it hereunder. The Escrow Agent shall also be entitled to reimbursement from the Company for all expenses paid or incurred by it in the administration

of its duties hereunder including, but not limited to, all counsel, advisors’ and agents’ fees and disbursements and all taxes or other governmental charges.

5.4 FURTHER ASSURANCES. From time to time on and after the date hereof, the Company and the Initial Stockholders shall deliver or cause to be delivered to the Escrow Agent such further documents and instruments and shall do or cause to be done such further acts as the Escrow Agent shall reasonably request to carry out more effectively the provisions and purposes of this Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.

5.5 RESIGNATION. The Escrow Agent may resign at any time and be discharged from its duties as escrow agent hereunder by its giving the other parties hereto written notice and such resignation shall become effective as hereinafter provided. Such resignation shall become effective at such time that the Escrow Agent shall turn over to a successor escrow agent appointed by the Company, the Escrow Shares and IPO Units held hereunder. If no new escrow agent is so appointed within the 60 day period following the giving of such notice of resignation, the Escrow Agent may deposit the Escrow Shares and IPO Units with any court it reasonably deems appropriate.

5.6 DISCHARGE OF ESCROW AGENT. The Escrow Agent shall resign and be discharged from its duties as escrow agent hereunder if so requested in writing at any time by the other parties hereto, jointly, provided, however, that such resignation shall become effective only upon acceptance of appointment by a successor escrow agent as provided in Section 5.5.

5.7 LIABILITY. Notwithstanding anything herein to the contrary, the Escrow Agent shall not be relieved from liability hereunder for its own gross negligence or its own willful misconduct.

6. MISCELLANEOUS.

6.1 GOVERNING LAW. This Agreement shall for all purposes be deemed to be made under and shall be construed in accordance with the laws of the State of New York.

6.2 THIRD PARTY BENEFICIARIES. Each of the Initial Stockholders hereby acknowledges that the Underwriters are third party beneficiaries of this Agreement and this Agreement may not be modified or changed without the prior written consent of FBW.

6.3 ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and, except as expressly provided herein, may not be changed or modified except by an instrument in writing signed by the party to the charged.

6.4 HEADINGS. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation thereof.

6.5 BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors and assigns.

6.6 NOTICES. Any notice or other communication required or which may be given hereunder shall be in writing and either be delivered personally or be mailed, certified or registered mail, or by private national courier service, return receipt requested, postage prepaid, and shall be deemed given when so delivered personally or, if mailed, two days after the date of mailing, as follows:

If to the Company, to:

India Globalization Capital, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: Chairman

If to a Stockholder, to his address set forth in Exhibit A.

and if to the Escrow Agent, to:

Continental Stock Transfer & Trust Company ▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇ Attn: Chairman

A copy of any notice sent hereunder shall be sent to:

Seyfarth ▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Esq.

▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇, Inc.
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Senior Vice President

and:

▇▇▇▇▇▇▇ ▇▇▇▇▇▇, LLP
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Esq.

The parties may change the persons and addresses to which the notices or other communications are to be sent by giving written notice to any such change in the manner provided herein for giving notice.

WITNESS the execution of this Agreement as of the date first above written.

INDIA GLOBALIZATION CAPITAL, INC.

By:

INITIAL STOCKHOLDERS:

CONTINENTAL STOCK TRANSFER
& TRUST COMPANY

By:

Name:

Title:

EXHIBIT A


Name and Address of	Number	Stock	Date of
Initial Stockholder	of Shares	Certificate Number	Insider Letter
Ram ▇▇▇▇▇▇▇	2,500,000		May 5, 2005
▇▇▇▇ ▇▇▇▇▇▇	537,500		May 5, 2005
Ranga Krishna	600,000		May 5, 2005
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇	850,000
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇	87,500
▇▇▇▇▇▇ ▇▇▇▇▇▇▇	87,500
▇▇▇▇▇▇ ▇▇▇▇▇	25,000
▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇	25,000
▇▇. ▇▇▇▇ ▇. ▇▇▇▇▇	50,000
▇▇▇▇▇ ▇▇▇▇▇▇▇▇	25,000
▇.▇. ▇▇▇▇▇▇▇▇	12,500

* With the exception of 37,500 shares issued to ▇▇. ▇▇▇▇▇▇, 100,000 shares issued to Dr. Krishna, 12,500 shares issued to each of Messers. ▇▇▇▇▇▇ and ▇▇▇▇▇▇▇, and the shares issued to Senator ▇▇▇▇▇▇▇▇ and ▇▇. ▇▇▇▇▇▇▇▇ the share numbers reflect the original number of shares issued to the stockholder, without giving effect to a 1-for-2 reverse stock split effected September 29, 2005. Giving effect to the reverse stock split, the number of shares deposited by each of the Initial Stockholders is as follows:


	Number
Initial Stockholder	of Shares

Ram ▇▇▇▇▇▇▇		1,250,000

▇▇▇▇ ▇▇▇▇▇▇		287,500

Ranga Krishna		350,000

▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇		425,000

▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇		50,000

▇▇▇▇▇▇ ▇▇▇▇▇▇▇		50,000

▇▇▇▇▇▇ ▇▇▇▇▇		12,500

▇▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇		12,500

▇▇. ▇▇▇▇ ▇. ▇▇▇▇▇		25,000

▇▇▇▇▇ ▇▇▇▇▇▇▇▇		25,000

▇.▇. ▇▇▇▇▇▇▇▇		12,500

STOCK AND UNIT ESCROW AGREEMENT

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