MSTI Holdings, Inc.
259-263 Goffle Road
Hawthorne, New Jersey 07506

February 12, 2008

To the MSTI Holdings, Inc. Unit Investors:
 
1.    Liquidated Damages; Repricing Warrants. Reference is hereby made to that
certain Registration Rights Agreement, dated as of May 24, 2007, as supplemented
by the addendum thereto, dated as of May 24, 2007 (as amended, the “Registration
Rights Agreement”), by and among MSTI Holdings, Inc., a Delaware corporation
(the “Company”), and each investor identified on the signature pages thereto
(each, including its successors and assigns, an “Investor” and, collectively,
the “Investors”). Capitalized terms used in this letter agreement and not
otherwise defined shall have the meanings ascribed to them in the Registration
Rights Agreement.
 
Pursuant to Section 1.2 of the Registration Rights Agreement, if the Company did
not take certain actions to cause the registration statement covering the
Registrable Securities (the “Registration Statement”) to be declared effective
by the Securities and Exchange Commission (the “Commission”) on or prior to the
Effectiveness Date, as such date has been extended to November 21, 2007 by
letter agreement between the Investors and the Company, dated September 6, 2007,
then the Company would be required to pay to each Investor, for each month in
which the Registration Statement has not been declared effective, an amount in
cash equal to 1% of the aggregate purchase price paid by such Investor for any
unregistered Registrable Securities then held by such Investor (“Liquidated
Damages”).
 
The undersigned Investors hereby waive any non-compliance with the
aforementioned Section 1.2 of the Registration Rights Agreement, and waive any
default or Event, and any breach or threatened breach, arising under the
Registration Rights Agreement or any other documents, including the Warrants and
Investors’ subscription agreements (collectively, the “Transaction Documents”),
and waive any Liquidated Damages, in each case resulting or that could result
from the Company’s failure to comply with said section.
 
In exchange for such waiver by the Investors of their rights to Liquidated
Damages, the parties hereto agree that Section 2(b) of the Warrants be hereby
amended to reduce the exercise price from $1.00 to $0.65 per share.
 
2.    Repricing Outstanding Options and Warrants. The undersigned hereby further
agree that, notwithstanding anything in the Transaction Documents to the
contrary, the exercise price of all options and warrants issued by the Company
which are currently outstanding shall be set at $0.65 per share.
 
3.    Filing of 8-K. On or before 5:30 pm (New York time) on the date after all
undersigned have signed this letter agreement, the Company shall file a Current
Report on Form 8-K, reasonably acceptable to each undersigned disclosing the
material terms of this letter agreement, which shall include this letter
agreement as an attachment thereto.
 
4.    Independent Nature of Investors’ Obligations and Rights. The Company has
elected to provide all Investors with the same terms and letter agreement for
the convenience of the Company and not because it was required or requested to
do so by the Investors. The obligations of each Investor under this letter
agreement, and any Transaction Document, are several and not joint with the
obligations of any other Investor, and no Investor shall be responsible in any
way for the performance or non-performance of the obligations of any other
Investor under this letter agreement or any Transaction Document. Nothing
contained herein or in any Transaction Document, an no action taken by any
Investor pursuant thereto, shall be deemed to constitute the Investors as a
partnership, an association, a joint venture or any other kind of entity, or
create a presumption that the Investors are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by this
letter agreement or the Transaction Documents. Each Investor shall be entitled
to independently protect and enforce its rights, including, without limitation,
the rights arising out of this letter agreement or out of the other Transaction
Documents, and it shall not be necessary for any other Investor to be joined as
an additional party in any proceeding for such purpose. Each Investor has been
represented by its own separate legal counsel in their review and negotiation of
this letter agreement and the Transaction Documents.
 

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5.    Miscellaneous. Subject to the waivers and agreements provided herein, the
Transaction Documents shall remain in full force and effect. Except as expressly
set forth herein, this letter agreement shall not be deemed to be a waiver,
amendment or modification of any provisions of the Transaction Documents or of
any right, power or remedy of the Investors, or constitute a waiver of any
provision of the Transaction Documents (except to the extent herein set forth),
or any other document, instrument and/or agreement executed or delivered in
connection therewith, in each case whether arising before or after the date
hereof or as a result of performance hereunder or thereunder. The Investors
reserve all rights, remedies, powers or privileges available under the
Transaction Documents, at law or otherwise, subject to the terms of this letter
agreement. This letter agreement shall not constitute a novation or satisfaction
and accord of the Transaction Documents or any other document, instrument and/or
agreement executed or delivered in connection therewith. This letter agreement
shall be governed by and construed in accordance with the laws of the State of
New York.
 
Please indicate your acknowledgment of and agreement to the foregoing by signing
a copy of this letter and returning an executed original to the Company.
Pursuant to Section 4.2 of the Registration Rights Agreement, this letter will
become effective and binding on all of the Investors with respect to the waiver
and amendment of provisions contained in the Registration Rights Agreement upon
execution of this letter agreement by the Investors holding a majority of the
outstanding Registrable Securities. This letter agreement may be executed by the
parties hereto in counterparts, and execution may be evidenced by facsimile or
other electronic transmission of a signed signature page by any party hereto,
and all of such counterparts together shall constitute one and the same
instrument.
 

    Sincerely,  
   
   
      /s/ Frank Matarazzo  

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Frank Matarazzo   Chief Executive Officer

 

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ACCEPTED AND AGREED:             “Investor”               Egatniv, LLC      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Seth Farbman     Dated: March 31, 2008  

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[sign above line]               Name: Seth Farbman        

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[print name of signatory above line]                 Title: Member        

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               Sandor Capital Master
Fund LP      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ John S. Lemak     Dated: February 28, 2008  

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[sign above line]               Name: John S. Lemak        

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[print name of signatory above line]                 Title: General Partner    
   

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Scott Frohman     Dated: February 27, 2008  

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[sign above line]               Name: Scott Frohman        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               Auracana LLC      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Glenn Kesner     Dated: February 27, 2008  

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[sign above line]               Name: Glenn Kesner        

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[print name of signatory above line]                 Title: Manager        

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ W. Timothy Parlett     Dated: March 28, 2008  

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[sign above line]               Name: W. Timothy Parlett        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Marvin Mermelstein     Dated: March 27, 2008  

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[sign above line]               Name: Marvin Mermelstein        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Peter Musser     Dated: March 20, 2008  

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[sign above line]               Name: Peter Musser        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ John Michael Winisette     Dated: March 20, 2008  

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[sign above line]               Name: John Michael Winisette        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Robert M. High     Dated: March 27, 2008  

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[sign above line]               Name: Robert M. High        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               Marrell Enterprises,
LLC      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Thomas M. Hall     Dated: February 19, 2008  

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[sign above line]               Name: Thomas M. Hall        

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[print name of signatory above line]                 Title: President        

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Ronald W. Pickett     Dated: March 20, 2008  

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[sign above line]               Name: Ronald W. Pickett        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Marshall Pickett     Dated: March 20, 2008  

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[sign above line]               Name: Marshall Pickett        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               Global Transport
Logistics, Inc.      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Anthony Matarazzo     Dated: February 29, 2008  

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[sign above line]               Name: Anthony Matarazzo        

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[print name of signatory above line]                 Title: President        

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Thomas C. Lynch     Dated: February 15, 2008  

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[sign above line]               Name: Thomas C. Lynch        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Gary Jackson     Dated: March 31, 2008  

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[sign above line]               Name: Gary Jackson        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Frank T. Matarazzo     Dated: February 18, 2008  

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[sign above line]               Name: Frank T. Matarazzo        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”                      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ A. Hugo Decesaris     Dated: March 31, 2008  

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[sign above line]               Name: A. Hugo Decesaris        

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[print name of signatory above line]                 Title:          

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               GRQ Consultants Inc.
401K Plan FBO Barry Honig and Renee Honig

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[if investor is entity, print entity’s name above line]                     By:
/s/ Barry Honig     Dated: March 31, 2008  

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[sign above line]               Name: Barry Honig        

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[print name of signatory above line]                 Title: Trustee        

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[print title of signatory, if investor is entity]      

 

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ACCEPTED AND AGREED:             “Investor”               Monarch Capital Fund
Ltd.      

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[if investor is entity, print entity’s name above line]                        
  By: /s/ Thomas Van Poucke     Dated: March 31, 2008  

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[sign above line]               Name: Thomas Van Poucke        

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[print name of signatory above line]                 Title: Director of
Navigator Management Ltd., General Partner of Monarch Capital Fund Ltd.  

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[print title of signatory, if investor is entity]

 

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