Document:

Exhibit 4

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this "Agreement") is made and entered into as of March 30, 2007, by and among Raser Technologies, Inc., a Utah corporation (the "Company"), and the purchasers signatory hereto (each such purchaser, a "Purchaser" and collectively, the "Purchasers").

This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof among the Company and the Purchasers (the "Purchase Agreement").

The Company and the Purchasers hereby agree as follows:

	Definitions.  Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.  As used in this Agreement, the following terms shall have the following meanings:

"Advice" shall have the meaning set forth in Section 6(d).

"Effectiveness Date" means, with respect to the Registration Statement required to be filed hereunder, the earlier of (a) the 135th calendar day following the date of the Purchase Agreement, and (b) the fifth Trading Day following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments.

"Effectiveness Period" shall have the meaning set forth in Section 2(a).

"Event" shall have the meaning set forth in Section 2(b).

"Event Date" shall have the meaning set forth in Section 2(b).

"Filing Date" means, with respect to the Registration Statement required to be filed hereunder, the 45 th  calendar day following the date of the Purchase Agreement.

"Holder" or "Holders" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"Indemnified Party" shall have the meaning set forth in Section 5(c).

"Indemnifying Party" shall have the meaning set forth in Section 5(c).

"Losses" shall have the meaning set forth in Section 5(a).

"Plan of Distribution" shall have the meaning set forth in Section 2(a). 

"Proceeding" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"Prospectus" means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement,  any issuer free-writing prospecuts and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"Registrable Securities" means all of the Shares and the Warrant Shares issuable to the Purchasers, and any shares issued or issuable to Objective Equity LLC, including shares issuable upon the exercise of warrants or options granted to Objective Equity LLC, up to 100,000 shares issued or issuable at the discretion of the Company's Board of Directors, and/or upon the exercise of warrants together with any shares of Common Stock issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing.

"Registration Statement" means the registration statements required to be filed hereunder, including (in each case) the Prospectus, amendments and supplements to the registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in the registration statement.

"Rule 415" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"Rule 424" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"Selling Shareholder Questionnaire" shall have the meaning set forth in Section 3(a).

	Registration.

	On or prior to the Filing Date, the Company shall prepare and file with the Commission the Registration Statement covering the resale of all of the Registrable Securities for an offering to be made on a continuous basis pursuant to Rule 415 provided, however, that if 100% of the Registrable Securities included hereunder shall equal or exceed 30% of the issued and outstanding Common Stock of the Company (less any shares of Common Stock held by affiliates of the Company and the holders of the Registrable Securities) on the actual filing date of the initial Registration Statement, the initial Registration Statement shall register a number of Registrable Securities which is equal to 30% of the issued and outstanding shares of Common Stock of the Company (less any shares of Common Stock held by affiliates of the Company and the holders of the Registrable Securities) on such actual filing and the remaining Registrable Securities shall be subject to Section 2.(b). The Registration Statement required hereunder shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case the Registration shall be on another appropriate form in accordance herewith).  The Registration Statement required hereunder shall contain (except if otherwise directed by the Holders) substantially the "Plan of Distribution" attached hereto as Annex A.  Subject to the terms of this Agreement, the Company shall use its best efforts to cause the Registration Statement to be declared effective under the Securities Act as promptly as possible after the filing thereof, but in any event not later than the Effectiveness Date, and shall use its best efforts to keep the Registration Statement continuously effective under the Securities Act until the date when all Registrable Securities covered by the Registration Statement have been sold or may be sold without volume restrictions pursuant to Rule 144(k) as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company's transfer agent and the affected Holders (the "Effectiveness Period").  The Company shall immediately notify the Holders via facsimile of the effectiveness of the Registration Statement on the same day that the Company receives notification of the effectiveness from the Commission.  Failure to so notify the Holder within 1 Trading Day of such notification shall be deemed an Event under Section 2(b).

	If: (i) a Registration Statement is not filed on or prior to the Filing Date (if the Company files a Registration Statement without affording the Holder the opportunity to review and comment on the same as required by Section 3(a), the Company shall not be deemed to have satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be "reviewed," or is not subject to further review, or (iii) prior to the date when such Registration Statement is first declared effective by the Commission, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement within 10 calendar days after the receipt of comments by or notice from the Commission that such amendment is required in order for a Registration Statement to be declared effective, or (iv) a Registration Statement filed or required to be filed hereunder is not declared effective by the Commission on or before the Effectiveness Date, or (v) after a Registration Statement is first declared effective by the Commission, it ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities, for in any such case 10 consecutive calendar days but no more than an aggregate of 15 calendar days during any 12 month period (which need not be consecutive Trading Days)(any such failure or breach being referred to as an "Event," and for purposes of clause (i) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five Trading Day period is exceeded, or for purposes of clause (iii) the date which such 10 calendar day period is exceeded, or for purposes of clause (v) the date on which such 10 or 15 calendar day period, as applicable, is exceeded being referred to as "Event Date"), then in addition to any other rights the Holders may have hereunder or under applicable law, then, on each such Event Date and on each monthly anniversary of each such Event Date up to a total of three  months (if the applicable Event shall not have been cured by such date) until the applicable Event is cured,  the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 1.0% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement for any Registrable Securities then held by such Holder. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full.  The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event.

	Registration Procedures

In connection with the Company's registration obligations hereunder, the Company shall:

	Not less than five Trading Days prior to the filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall, (i) furnish to the Holders copies of all such documents proposed to be filed (including documents incorporated or deemed incorporated by reference to the extent requested by such Person) which documents will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act.  The Company shall not file the Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that the Company is notified of such objection in writing no later than 5 Trading Days after the Holders have been so furnished copies of such documents.  Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a "Selling Shareholder Questionnaire") not less than two Trading Days prior to the Filing Date or by the end of the fourth Trading Day following the date on which such Holder receives draft materials in accordance with this Section.

	(i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and, as promptly as reasonably possible, upon request, provide the Holders true and complete copies of all correspondence from and to the Commission relating to the Registration Statement; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by the Registration Statement during the applicable period in accordance with the intended methods of disposition by the Holders thereof set forth in the Registration Statement as so amended or in such Prospectus as so supplemented.

	Notify the Holders of Registrable Securities to be sold as promptly as reasonably possible and (if requested by any such Person) confirm such notice in writing promptly following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a "review" of the Registration Statement and whenever the Commission comments in writing on the Registration Statement (the Company shall upon request provide true and complete copies thereof and all written responses thereto to each of the Holders); and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of any event or passage of time that makes the financial statements included in the Registration Statement ineligible for inclusion therein or any statement made in the Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to the Registration Statement, Prospectus or other documents so that, in the case of the Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

	Use best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

	Furnish to each Holder, without charge, at least one conformed copy of the Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission.

	Promptly deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request in connection with resales by the Holder of Registrable Securities.  Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving on any notice pursuant to Section 3(c).

	Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep the Registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction.

	If NASDR Rule 2710 requires any broker-dealer to make a filing prior to executing a sale by a Holder, make an Issuer Filing with the NASDR, Inc. Corporate Financing Department pursuant to NASDR Rule 2710(b)(10)(A)(i) and respond within five Trading Days to any comments received from NASDR in connection therewith, and pay the filing fee required in connection therewith.

	If requested by the Holders, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

	Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section 3(c) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus.  The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable.  The Company shall be entitled to exercise its right under this Section 3(i) to suspend the availability of a Registration Statement and Prospectus, subject to the payment of partial liquidated damages pursuant to Section 2(b), for a period not to exceed 60 days (which need not be consecutive days) in any 12 month period.

	Comply with all applicable rules and regulations of the Commission.

	The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the person thereof that has voting and dispositive control over the Shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company's request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

	Registration Expenses.  All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement.  The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Trading Market on which the Common Stock is then listed for trading, (B) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders) and (C) if not previously paid by the Company in connection with an Issuer Filing, with respect to any filing that may be required to be made by any broker through which a Holder intends to make sales of Registrable Securities with NASD Regulation, Inc. pursuant to the NASD Rule 2710, so long as the broker is receiving no more than a customary brokerage commission in connection with such sale, (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement.  In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

	Indemnification

	Indemnification by the Company.  The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses (collectively, "Losses"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d).  The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement.

	Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company specifically for inclusion in the Registration Statement or such Prospectus or (ii) to the extent that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or  defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d).  In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

	Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "Indemnifying Party") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have prejudiced the Indemnifying Party.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of one separate counsel shall be at the expense of the Indemnifying Party).  The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is not entitled to indemnification hereunder, determined based upon the relative faults of the parties.

	Contribution.  If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission.  The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, except in the case of fraud by such Holder. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The selling Holder's obligations in this subsection to contribute shall be in proportion to its sale of Shares to which such loss relates and shall not be joint with any other selling Holder.

The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

	Miscellaneous

	Remedies.  In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement.  The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

	No Piggyback on Registrations.  Except for shares of the Company's Common Stock issued or to be issued to Objective Equity LLC or shares issuable upon the exercise of warrants or options issued to Objective Equity LLC, up to 100,000 shares issued or issuable upon the discretion of the Company's Board of Directors and/or as set forth on Schedule 6(b) attached hereto, neither the Company nor any of its security holders (other than the Holders solelyin such capacity pursuant hereto) may include securities of the Company in a Registration Statement other than the Registrable Securities.  Except for the Company's agreement with Objective Equity LLC and/or as Schedule 6(b),no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company. The Company shall not file any other registration statements until 60 Trading Days following the date that the Registration Statement required hereunder is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing amendments to registration statements already filed.

	Compliance.  Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

	Discontinued Disposition.  Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the "Advice") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement.  The Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as it practicable.  The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions of Section 2(b).

	Piggy-Back Registrations.  If at any time during the Effectiveness Period there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination and, if within fifteen days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered, subject to customary underwriter cutbacks applicable to all holders of registration rights.  The provisions of Section 4 hereof shall apply to any such registration.

	Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and each Holder of the then outstanding Registrable Securities.  Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of all of the Registrable Securities to which such waiver or consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence.

	Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.

	Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of all of the Holders of the then-outstanding Registrable Securities. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

	No Inconsistent Agreements. Neither the Company nor any of its subsidiaries has entered, as of the date hereof, nor shall the Company or any of its subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof.  Except as set forth on Schedule 6(i), neither the Company nor any of its subsidiaries has previously entered into any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied in full.

	Execution and Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement.  In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

	Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined with the provisions of the Purchase Agreement.

	Cumulative Remedies.  The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

	Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

	Headings.  The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

	Independent Nature of Holders' Obligations and Rights.  The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder.  Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement.  Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

*************************

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

	
RASER TECHNOLOGIES, INC.  

	
By:__________________________________________

     Name:

     Title:

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

[HOLDER'S SIGNATURE PAGE TO RASER TECHNOLOGIES  RRA]

 

	
Date: March 30, 2007
	
/s/ Nicole J Best

 

	
 
	
Nicole J Best, Chief Compliance Officer 

Heartland Value Fund

	
	

	Date: March 30, 2007

	
/s/ Peter A Nussbaum

 

	
 
	
Peter A. Nussbaum, General Counsel

S.A.C. Capital Associates LLC

	
	

	Date: March 30, 2007

	
/s/ Brandon O'Neil

 

	
 
	
Brandon O'Neil, Principal and Portfolio Manager 

Enable Growth Partners LP

	
	

	Date: March 30, 2007

	
/s/ Brandon O'Neil

 

	
 
	
Brandon O'Neil, Principal and Portfolio Manager

Enable Opportunity Partners LP

	
	

	Date: March 30, 2007

	
/s/ Brandon O'Neil

 

	
 
	
Brandon O'Neil, Principal and Portfolio Manager

Pierce Diversified Strategy Master fund LLC

	
	

	Date: March 30, 2007

	
/s/ Marc Tauber

 

	
 
	
Marc Tauber, Chief Operating Officer 

Aurarian Capital Partners II LP

	
	

	Date: March 30, 2007

	
/s/ Marc Tauber

 

	
 
	
Marc Tauber, Chief Operating Officer

Aurarian Offshore Ltd.

	
	

	Date: March 30, 2007

	
/s/ Yoav Roth

 

	
 
	
Yoav Roth, Principal and Portfolio Manager 

Hudson Bay Fund LP

	
	

	Date: March 30, 2007

	
/s/ Yoav Roth

 

	
 
	
Yoav Roth, Principal and Portfolio Manager 

Hudson Bay Overseas Fund LT

	
	

	Date: March 30, 2007

	
/s/ Reynold Roeder

 

	
 
	
Reynold Roeder, Reynold and Wendy S. Roeder, JTWROS

 

 

ANNEX A

Plan of Distribution

The Selling Stockholders (the "Selling Stockholders") of the common stock ("Common Stock") of Raser Technologies, Inc., a Utah corporation (the "Company") and any of their pledgees, assignees and successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions.  These sales may be at fixed or negotiated prices.  The Selling Stockholders may use any one or more of the following methods when selling shares:

	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;
	an exchange distribution in accordance with the rules of the applicable exchange;
	privately negotiated transactions;
	settlement of short sales entered into after the date of this prospectus;
	broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share;
	a combination of any such methods of sale;
	through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; or
	any other method permitted pursuant to applicable law.

The Selling Stockholders may also sell shares under Rule 144 under the Securities Act of 1933, as amended (the "Securities Act"), if available, rather than under this prospectus.

Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales.  Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with NADSR Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with NASDR IM-2440.  

In connection with the sale of the Common Stock or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Common Stock in the course of hedging the positions they assume.  The Selling Stockholders may also sell shares of the Common Stock short and deliver these securities to close out their short positions, or loan or pledge the Common Stock to broker-dealers that in turn may sell these securities.  The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

The Selling Stockholders and any broker dealers or agents that are involved in selling the shares may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales.  In such event, any commissions received by such broker dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.  Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the Common Stock. In no event shall any broker-dealer receive fees, commissions and markups which, in the aggregate, would exceed eight percent (8%).The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the shares.  The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.  

Because Selling Stockholders may be deemed to be "underwriters" within the meaning of the Securities Act, they will be subject to the prospectus delivery requirements of the Securities Act.  In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule 144 under the Securities Act may be sold under Rule 144 rather than under this prospectus.  Each Selling Stockholder has advised us that they have not entered into any written or oral agreements, understandings or arrangements with any underwriter or broker-dealer regarding the sale of the resale shares.  There is no underwriter or coordinating broker acting in connection with the proposed sale of the resale shares by the Selling Stockholders.

We agreed to keep this prospectus effective until the earlier of (i) the date on which the shares may be resold by the Selling Stockholders without registration and without regard to any volume limitations by reason of Rule 144(e) under the Securities Act or any other rule of similar effect or (ii) all of the shares have been sold pursuant to the prospectus or Rule 144 under the Securities Act or any other rule of similar effect.  The resale shares will be sold only through registered or licensed brokers or dealers if required under applicable state securities laws. In addition, in certain states, the resale shares may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale shares may not simultaneously engage in market making activities with respect to the Common Stock for a period of two business days prior to the commencement of the distribution.  In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of shares of the Common Stock by the Selling Stockholders or any other person.  We will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this prospectus to each purchaser at or prior to the time of the sale.

 

Annex B

RASER TECHNOLOGIES, INC.  

Selling Securityholder Notice and Questionnaire

The undersigned beneficial owner of common stock, par value $0.01 per share (the "Common Stock"), of Raser Technologies, Inc., a Utah corporation (the "Company"), (the "Registrable Securities") understands that the Company has filed or intends to file with the Securities and Exchange Commission (the "Commission") a registration statement on Form S-3 (the "Registration Statement") for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the "Securities Act"), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement, dated as of March __, 2007 (the "Registration Rights Agreement"), among the Company and the Purchasers named therein.  A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

Certain legal consequences arise from being named as a selling securityholder in the Registration Statement and the related prospectus.  Accordingly, holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences of being named or not being named as a selling securityholder in the Registration Statement and the related prospectus.

NOTICE

The undersigned beneficial owner (the "Selling Securityholder") of Registrable Securities hereby elects to include the Registrable Securities owned by it and listed below in Item 3 (unless otherwise specified under such Item 3) in the Registration Statement.

The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

QUESTIONNAIRE
1.Name.

(a)Full Legal Name of Selling Securityholder

	 
	 

(b)Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:

	 
	 

(c)Full Legal Name of Natural Control Person (which means a natural person who directly you indirectly alone or with others has power to vote or dispose of the securities covered by the questionnaire):

	 
	 

2.  Address for Notices to Selling Securityholder:

	 
	 
	 
	
Telephone:

	
Fax:

	
Contact Person:

3.  Beneficial Ownership of Registrable Securities:

(a)Type and Number of Registrable Securities beneficially owned:

	 
	 
	 
	 

 
4.  Broker-Dealer Status:

(a)Are you a broker-dealer?

Yes   [] No   []
Note:If yes, the Commission's staff has indicated that you should be identified as an underwriter in the Registration Statement.

(b)Are you an affiliate of a broker-dealer?

Yes   [] No   []
(c)If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?

Yes   [] No   []
Note:If no, the Commission's staff has indicated that you should be identified as an underwriter in the Registration Statement.

5.  Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.

Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item 3.
(a)Type and Amount of Other Securities beneficially owned by the Selling Securityholder:

	 
	 
	 

 

 
6.  Relationships with the Company:

Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
State any exceptions here:

	 
	 
	 

The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at any time while the Registration Statement remains effective.

By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the Registration Statement and the related prospectus.  The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus.

IN WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent.

Dated: Beneficial Owner: 

By:

Name:

Title:

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY, OVERNIGHT MAIL, TO:

David B. Manno

Sichenzia Ross Friedman Ference LLP

61 Broadway

New York, New York 10006

                                    (212) 981-6772 (phone)

                                     (212)  930-9725 (fax)

                         dmanno@srff.com (email) 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

 

 
FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

_______________________________________________ whose address is

_______________________________________________________________.

 

 

_______________________________________________________________

Dated:  ______________, _______

 

Holder's Signature:_____________________________

Holder's Address:_____________________________

_____________________________

 

 

Signature Guaranteed:  ___________________________________________

 

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant._______________, 2006

March 30, 2007

AMI Doduco, Inc.

Murray Corporate Park

1003 Corporate Drive

Export, PA 15362

Technitrol, Inc.

1210 Northbrook Drive, Suite 470

Trevose, PA 19053

Dear Sirs:

     Fee Consignment and/or Purchase of Silver Agreement

We are pleased to confirm that, subject to your acceptance of this facility, HSBC Bank USA, National Association ("Bank") will be prepared to deliver on an uncommitted basis, from time to time, silver upon consignment (the "Consignment(s)") to AMI DODUCO, INC. and TECHNITROL, INC., jointly and severally (individually a "Consignee" and collectively the "Consignees" and together with Bank, "the Parties") subject to availability and to the terms and conditions outlined herein and further subject to Bank's absolute discretion not to deliver silver if it so decides.

Definitions.  For the purposes of this Agreement:

"Dollar Value" with respect to silver shall mean, on the day of determination, the value in U.S. dollars of one troy ounce of silver determined by the London Silver Market ("LSM") fixing price with respect to silver on such day times the number of ounces of silver, in respect of which the Dollar Value is being determined.  In the event that there is no LSM fixing price for silver on a particular day, the last established LSM fixing price for silver shall apply.

1.Availability.  Silver delivered and held on consignment hereunder from time to time by the Consignees shall not at any time have a Dollar Value which exceeds $25,000,000.00 U.S. (the "Maximum Dollar Limit"). 

2.Restoration of Maximum Dollar Limit.  If at any time the Dollar Value of silver held on consignment hereunder by the Consignees should exceed the Maximum Dollar Limit, then the Consignees shall promptly, without further notice or demand by Bank, either:

(i)make payment to Bank for a portion of the silver held on consignment hereunder in an amount sufficient to reduce the Dollar Value of the silver continued to be held on consignment hereunder to an amount no greater than the Maximum Dollar Limit; or

(ii) purchase from Bank, at the applicable LSM fixing price (plus the applicable premium as provided in paragraph 14), a quantity of the silver held on consignment hereunder sufficient to reduce the Dollar Value of the silver held on consignment hereunder to an amount no greater than the Maximum Dollar Limit.

With respect to item (ii) above, if the Parties are unable to agree to the purchase price, then the Maximum Dollar Limit shall be restored pursuant to the provisions of item (i) above.

3.Quality.  Silver delivered to the Consignees and returned to Bank shall be in London Good Delivery bar form and of a minimum fineness of .9999, unless otherwise mutually agreed to in advance of delivery.  EXCEPT FOR THE FINENESS OF THE SILVER SPECIFIED HEREIN, BANK MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE GOODS CONSIGNED OR TO BE SOLD HEREUNDER, WHETHER AS TO MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER MATTER, AND BANK HEREBY DISCLAIMS ALL SUCH WARRANTIES.

4.Orders.  Requests for delivery of silver will be made by an authorized representative of the Consignees to an authorized officer of Bank by telephone or telecopied transmission.  Each request will indicate the quantity and quality of the silver to be delivered, the date on which the delivery is requested to be made and the required term of the Consignment, which term may be for up to twelve (12) months or any other term which is mutually acceptable to the Parties.  Unless otherwise requested by the Consignees, any silver delivered shall be of the quality set forth in paragraph 3.  All telephone requests shall be confirmed in writing to Bank within five (5) Business Days of such request.  Upon acceptance by Bank of a consignment request, Bank shall issue a written confirmation to the Consignees of the terms of the consignment and the terms of such confirmation shall be binding on the Parties.

5.Deliveries by Bank.

(a)If Bank has agreed to make a requested delivery of silver, it will arrange for the delivery of the silver, F.O.B. Bank's or its designee's vault, to a location acceptable to the Parties and on the date agreed upon for delivery.  The Consignees will bear the cost of such delivery and bear all risk of loss or damage to the silver requested to be delivered. Such delivery shall be accompanied by a delivery statement provided by Bank setting out the quantity and quality of silver delivered.

(b)If on receipt of the silver it is determined by the Consignees that the silver delivered by Bank to the Consignees is of a different quantity and/or quality than is set out in the delivery statement, the Consignees shall forthwith give notice of such discrepancy to Bank.  In that event, Bank shall be entitled to conduct such tests and make such examination of the silver as it considers necessary or desirable.  If such tests or examinations determine that the silver delivered by Bank to the Consignees is of a different quantity and/or quality than was set out in the said delivery statement, then Bank or the Consignees, as the case may be, shall make the appropriate adjustments.

(c)Absent manifest error, unless Bank receives from the Consignees the above described notice of discrepancy within fifteen (15) Business Days of receipt of the silver, then the silver delivered will be deemed to be as set out in the delivery statement that accompanied the delivery.

Business Day.  For the purposes of this Agreement, "Business Day" shall mean any day, other than a Saturday, a Sunday or a day that banks are lawfully closed for business in New York, New York, or in the case of any location to which silver is to be delivered or received, a day that transactions cannot be carried out at such location.

6.Consignment Fee.

(a)The Consignees will pay monthly and on the last day of a Consignment term, in arrears, to Bank as a consignment fee in respect of the applicable Consignment an amount and at such rate, which amount and rate shall be agreed upon by the Consignees and Bank at the time of each Consignment request or request for renewal, which rate shall remain in effect for the term of the applicable Consignment.  In the event that the Consignees and Bank should fail at any time to agree upon the rate to apply to a Consignment or the renewal of a Consignment term, then the Consignees shall immediately deliver the subject silver for which there is no agreement to Bank, as provided for in paragraph 24 hereof.

Notwithstanding the foregoing or any other provisions in this Agreement, any renewal of a Consignment term requested by the Consignees shall be at Bank's option and subject to Bank's absolute discretion not to renew a Consignment term if it so decides.  Any Consignment the term of which is not renewed shall be immediately re-delivered to Bank in accordance with the terms of this Agreement.

(b)All rates in this Agreement shall be calculated on the basis of a 360 day year and for the actual number of days elapsed.

7.Title.

(a)Title to the silver delivered by Bank and held by the Consignees on consignment for Bank will remain with Bank and will not pass to the Consignees until such time as the silver is purchased by the Consignees as provided for in paragraphs 10, 11 and 7(b) hereof.  In the event that only a portion of a Consignment is purchased, then title as pertains to that portion only will transfer to the Consignees.

(b)Title to the silver purchased by the Consignees as provided for in paragraphs 10 and 11 hereof will pass to the Consignees upon receipt by Bank of all funds due to it from the Consignees in payment for the silver purchased.

8.Commingling.  The Consignees and Bank agree that the Consignees shall be permitted, in the ordinary course of its business as now being conducted, to commingle the silver held on consignment for Bank with any other silver or silver containing alloys being held by the Consignees on consignment, safekeeping, or trust, or with silver or silver containing alloys owned by the Consignees and, notwithstanding such commingling, all such silver shall remain subject to this Consignment by Bank.

9.Safekeeping.  Until such time as the silver received from Bank has been returned to Bank, or purchased by the Consignees, as hereinafter provided, the Consignees will afford the silver no less safekeeping protection than it affords silver held for its own account and Consignees shall bear all risk of loss or damage to the silver.  The Consignees will arrange insurance coverage, reasonably acceptable to Bank, on the silver held on consignment for Bank by the Consignees in such amounts and covering such risks as is usually carried by companies engaged in a similar business and the Consignees shall, upon request, deliver to Bank a copy of all policies for such insurance.

10.Purchase Request.  If the Consignees wish to purchase part or all of the silver held hereunder on consignment for Bank, an authorized representative of the Consignees will make a request to an authorized officer of Bank by telephone or telecopied transmission stating the quantity and quality of silver to be purchased and the proposed value date of the purchase.  Bank will send Consignees written confirmation of all telephone requests and Consignees shall send Bank written acknowledgement of such confirmation within five (5) Business Days of receipt.

11.Purchase.  Bank, by its authorized officer, shall provide an authorized representative of the Consignees at least two (2) Business Days (or such lesser period as Bank may accommodate) prior to the proposed value date with a quotation (based on the LSM fixing price with respect to silver plus the applicable premium) of the value date price of the silver to be purchased.  If the authorized representative of the Consignees agrees to such quotation, such quantity of silver will thereupon be conclusively deemed to have been contracted for purchase, with payment of the purchase price to be made on the agreed upon value date.

12.Joint and Several.  The Consignees agree that they are jointly and severally liable for all agreements, obligations and liabilities incurred under this Agreement.

13.Invoices.

(a)In the case of a Consignment, Bank will furnish the Consignees with a statement of the quantity and quality of silver held on consignment for Bank and a calculation of the consignment fee in accordance with paragraph 6 hereof payable by the Consignees, together with an invoice for such charges.

(b)In the case of purchases, Bank will furnish the Consignees promptly after each purchase is agreed to with a statement setting forth the quantity and quality of the silver sold, and a calculation of the purchase price payable by the Consignees, together with an invoice for such purchase price.

(c)Failure by Bank to issue a statement and/or an invoice or failure to issue such statement and/or invoice in a timely manner, does not negate the Consignees' obligation to pay amounts due under this Agreement.

(d)If there is a discrepancy between the statement provided by Bank and the agreed to terms of the purchase by the Consignees, as the Consignees understands them to be, the Consignees shall forthwith notify Bank of such discrepancy.  Absent manifest error, if such notification is not received by Bank within ten (10) Business Days of receipt of the statement by the Consignees then such statement shall be deemed to be correct.

14.Payments.  Payment of the consignment fee will be made by the Consignees on the tenth (10th) Business Day of each month and on the last day of a Consignment term.  Payment of the purchase price of the silver will be made on the value date determined by the LSM fixing price with respect to silver on such day plus a premium as determined by Bank based on prevailing market conditions and the form and quality of the silver delivered to or retained by the Consignees.  In either case, payment will be made in U.S. dollars in same day funds by any method mutually agreed upon from time to time which methods shall include, without limitation, at the election of the Bank, by debit to any accounts of the Consignees maintained at the Bank.  If an amount payable hereunder is not paid when due, the Consignees will pay the greater of (a) a late fee equal to three percent (3%) of the required payment, or (b) to the extent permitted by law, a late charge on the required payment not paid when due at a consignment fee equal to two percent (2%) in excess of the consignment fee that would otherwise be payable, from the date of delinquency until paid in full.  

15.Reports.  In the event that TECHNITROL, INC.'s financial statements are no longer publicly available, the Consignees will begin sending to Bank quarterly and annual audited financial statements within forty-five (45) days of the end of each fiscal quarter (other than the last fiscal quarter of a fiscal year) and ninety (90) days of the end of each fiscal year and any other information as Bank may reasonably request from time to time.

16.Period of Agreement.  Any party to this Agreement may, for any reason, and upon no less than thirty (30) days' written notice to the other party (the "Termination Notice") terminate this Agreement.  Such termination to be effective, except as hereinafter provided, as of the date specified in such Termination Notice (such date being the "Termination Date").  Notwithstanding the above, in the event that any term of a Consignment should extend beyond the Termination Date, termination with respect to that Consignment only shall be effective on the maturity date applicable to such Consignment.  For all other Consignments, termination shall be effective on the Termination Date. On the relevant effective date for termination, the Consignees shall, if they have not already done so, re-deliver to Bank all silver which is held for Bank by the Consignees under the relevant terminated Consignments by either physically delivering the silver to Bank, or by purchasing the silver from Bank as provided for in paragraphs 10 and 11 hereof and shall pay to Bank all applicable amounts due and accruing to it hereunder.  Any delivery of silver by the Consignees to the Bank hereunder shall be subject, in addition to the provisions of Section 24, to prior inspection and approval by the Bank as to the quantity, quality including form and fineness, delivery terms and locations and any other conditions the Bank may require.  If an Event of Default should occur prior to the Termination Date specified in any Termination Notice or prior to any other applicable date of termination for a Consignment, Bank's right to terminate this Agreement and make demand hereunder shall take effect immediately.

17.Events of Default.  Upon the occurrence of any one of the following events of default (an "Event of Default"):

(a)failure by the Consignees to deliver any amount of silver or pay any Purchase Price, consignment fees, interest or other amounts in respect of any silver held on consignment hereunder or purchased from Bank, on the date on which it is due hereunder; 

(b)failure by the Consignees to restore the Maximum Dollar Limit as required by paragraph 2;

(c)the Consignees makes any representation or warranty hereunder which is incorrect in any material respect; or breaches any covenant hereunder or fails to perform or observe, in any material respect, any other term or provision contained in this Agreement and any such breach of covenant or failure to perform or observe shall remain unremedied for fifteen (15) days after written notice thereof has been given by Bank to the Consignees in the manner provided for in paragraph 23 hereof;

(d)a materially adverse change occurs in the financial condition of the Consignees which gives reasonable grounds to conclude that the Consignees will be unable to perform or observe, in the normal course, their obligations under this Agreement;

(e)any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or any other proceedings for the relief of debtors and/or creditors are instituted by or against a Consignee, and, in the case of any such proceeding instituted against a Consignee (but not instituted by such party), either such proceeding shall remain undismissed, or unstayed for a period of 30 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against it or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property) shall occur;

(f)an order is made or an effective resolution passed for the winding-up or liquidation of a Consignee; or any steps are taken to enforce any encumbrance on the whole or any material part of the undertaking, property or assets of a Consignee;

(g)the occurrence of (i) any Event of Default as defined in that certain Credit Agreement dated as of October 14, 2005 (the "Credit Agreement") by and among the Consignees and certain other subsidiaries of the Consignees, Bank of America, N.A. as Administrative Agent, Swing Line Lender and L/C Issuer, Bank of America, N.A. Singapore Branch as Singapore Administrative Agent, and the Lenders (all as defined in the Credit Agreement), as the same may be amended and/or amended and restated from time to time, which gives the Administrative Agent the right to declare any or all of the Obligations (as defined in the Credit Agreement) to be immediately due and payable or (ii) a default or event of default shall occur on any other indebtedness of the Consignees in excess of $5,000,000 pursuant to which the holder of such indebtedness has the right to declare such indebtedness to be immediately due and payable;

Bank may terminate this Agreement and, upon making a demand in writing upon the Consignees, will become entitled, as the Bank shall elect, either (i) to have the Consignees deliver to Bank forthwith all silver held by the Consignees on consignment for Bank hereunder or (ii) to have the Consignees purchase all silver held by the Consignees as provided for in paragraphs 10 and 11 hereof and shall be entitled to receive payment forthwith from the Consignees of all amounts due and accruing to Bank hereunder.  Delivery of such silver shall be made by either physically delivering the silver to Bank or by paying to Bank the applicable LSM fixing price (plus the applicable premium) of the silver then held by the Consignees as of the date and time of termination and by so paying such amount, the Consignees shall be deemed to have purchased the silver which they were required to re-deliver to Bank.  If the Consignees fail to immediately deliver to Bank all such silver held on consignment hereunder or fails to immediately pay to Bank all other amounts due to it hereunder, Bank may proceed to take such steps as it deems fit, including realizing upon any security it holds in that respect.

18.Corporate Authority   At the time of acceptance of this Agreement, the Consignees will furnish Bank a certificate of the Secretary of each of the Consignees setting out the names and specimen signatures of those officers authorized to sign this Agreement on behalf of the Consignees and such other information as the Bank may reasonably request.

19.Authorized Representatives.  The Consignees will, from time to time, notify Bank in writing of the names of two or more persons who are to be their authorized representatives for the purposes hereof. Bank will, from time to time, notify the Consignees in writing of the names of two or more persons who are to be its authorized officers for the purposes hereof.  The Consignees and Bank shall provide to each other specimen signatures of such persons.

20.Representations of the Consignees.  The Consignees hereby represent and warrant to Bank that each of them has full power and authority to purchase silver from Bank and to receive and hold silver for Bank on the terms and conditions contained herein; that each of them has obtained all necessary governmental approvals, if any, to receive and hold and purchase silver; and, that this Agreement has been duly authorized by all necessary corporate action and that the execution, delivery and performance of this Agreement by the Consignees will not result in the breach of its charter, articles of incorporation, by-laws, corporate resolutions or other of its constitutional documents or the Credit Agreement or any other agreement relating to the consignment of precious metals with Consignees. 

21.Representations of Bank.  Bank hereby represents and warrants to the Consignees that it shall have title free and clear of any encumbrance to all silver to be delivered to the Consignees under this Agreement, and that it has full power and authority to deliver and sell silver to the Consignees on the terms and conditions contained herein.

22.Covenants of the Consignees.

(a)Records:  The Consignees shall maintain at their principal places of business records reasonably satisfactory to Bank with respect to the silver delivered by Bank hereunder, and shall permit an authorized officer of Bank, or a representative not necessarily in Bank's employ, to examine such records at any reasonable time during normal business hours, with reasonable prior notice.

(b)Taxes:  The Consignees shall pay all license fees, taxes, customs duties, assessments and charges lawfully levied, assessed or imposed in respect of the silver held by the Consignees for Bank hereunder or upon the sale of such silver by Bank to the Consignees, except any tax in respect of the income of Bank.

All payments by the Consignees shall be made without set-off or counterclaim and free and clear of any taxes (including any value added tax), levies, duties, charges, fees or deductions for withholdings whatsoever.

If, as a result of any requirement, it should be necessary for the Consignees to deduct or withhold any amount from any payment hereunder, then the Consignees shall make an additional payment so that the amount received by Bank after such deduction or withholding equals the amount that would have been received by Bank if there had been no such deduction or withholding requirement. 

Evidence satisfactory to Bank of the payment of any tax, etc. referred to in this paragraph will, upon the request of Bank made from time to time, be provided by the Consignees to Bank.

(c)Observe Laws:  The Consignees shall duly observe and conform to all valid requirements of any governmental authority relative to the holding of silver by the Consignees for Bank hereunder.

(d)Negative Covenants:  The Consignees covenant and agree that, until the satisfaction in full of all of the Consignees' obligations to Bank hereunder, the Consignees will not, directly or indirectly, (i) create, incur, assume or suffer to exist any pledge, lien, security interest or other encumbrance of any nature whatsoever, on any of the silver held on consignment hereunder other than any security interest granted to Bank; (ii) sell, lease, transfer or otherwise dispose of all or any portion of the silver held on consignment hereunder, except in the ordinary course of its business; (iii) dissolve or liquidate; or (iv) guarantee or otherwise in any way become or be responsible for obligations of any other person.  Notwithstanding the previous sentence, a Consignee may from time to time guarantee the obligations of (1) the other Consignee or other entities controlled by the other Consignee, or (2) third parties, in the ordinary course of business which in the aggregate do not exceed $20,000,000 U.S. at any one time; provided, that, the issuance of any such guarantees shall not, individually or in the aggregate, have a material adverse effect on the business or prospects of such Consignee.

(e)Deposit Account:  Promptly following the execution and delivery of this Agreement the Consignees shall open a demand deposit account at the Bank.  The Consignees agree that the Bank may from time to time debit such account for the payment of consignment fees and other amounts payable hereunder.

23.Notices.  Any notice in writing may be given by being delivered by hand or by being sent by authenticated telex, telecopied transmission in the case of the Consignees to:

AMI Doduco, Inc.

Murray Corporate Park

1003 Corporate Drive

Export, PA 15362

Attention: Vice President of Purchasing

Fax No.:(724) 733-2880

and:

Technitrol, Inc.

1210 Northbrook Drive, Suite 470

Trevose, PA 19053

Attention: Chief Financial Officer

Fax No.:(215) 355-7397

and in the case of Bank to:

HSBC Bank USA, National Association

464 Winthrop Street

Rehoboth, MA 02769

Attention:  Richard M. Seufert, First Vice President

Fax No.:(508) 252-5475

or to such other address or telecopier number as may hereafter be notified in writing by the Consignees or Bank, respectively and any such notice, if given by hand, authenticated telecopied transmission will be deemed to have been given when delivered or sent.

If an authorized representative of the Consignees makes an oral request or gives an oral notice hereunder to Bank, whether to an agent or an employee of Bank then, until notice in writing by the Consignees, Bank shall be entitled to rely on its dealings with the Consignees upon those oral instructions whether by telephone or otherwise.  In so relying, neither Bank nor any agent or employee shall incur any liability to the Consignees in acting upon such oral instructions contemplated hereby and which Bank believes in good faith to have been given by a person authorized by the Consignees to effect any applicable transaction.  In the event there is a discrepancy between the oral instructions and any written confirmation in respect thereof, or in the absence of receiving confirmation, the oral instructions will be deemed to be the controlling instructions.

24.Deliveries by Consignees.  All deliveries of silver to be made hereunder by the Consignees to Bank will be subject to the Bank's prior consent to such delivery and shall be delivered to Bank free of all liens, charges, security interests and encumbrances and made in accordance with the directions of Bank or, in the absence of such directions, in a commercially acceptable manner to a vault designated by Bank.  The Consignees shall bear the cost of such delivery and shall bear the risk of loss of or damage to such silver until delivery is made by it to Bank at which time such risk shall pass to Bank.  Any credit to Consignees for silver delivered to the Bank shall be subject to the assay of the value thereof by the Bank.  If on receipt of the silver it is determined by Bank that the silver delivered by Consignees to Bank is of a different quantity and/or quality than required to be delivered hereunder, Bank shall forthwith give notice of such discrepancy to the Consignees.  In that event, the Consignees shall be entitled to conduct such tests and make such examinations of the silver as they consider necessary or desirable.  If such tests or examinations determine that the silver delivered by Consignees to Bank was of a different quantity and/or quality than was required to be delivered, the Consignees or Bank, as the case may be, shall make the appropriate adjustments.

25.  Assignment.  The Consignees may not assign or transfer any of their rights or obligations hereunder without the prior written consent of Bank. Bank may at any time assign or transfer all or any of its rights and/or obligations hereunder.  

26.Laws.  This Agreement will be interpreted and governed in all respect by the laws of the State of New York without reference to its conflicts of laws provisions other than Section 5-140 of the New York General Obligations Law.  

27.Amendments.  This Agreement constitutes the entire Agreement between the Consignees and Bank in respect of the subject matter hereof and may only be amended by a document signed by the Consignees and Bank.

28.Judgment Currency.  All payments made under this Agreement or resulting from any judgment relating to this Agreement shall be made in U.S. Dollars.

29.Force Majeure.  If Bank is prevented from or hindered in making delivery of silver or the making of delivery is delayed by reason of force majeure (which shall be deemed for this purpose to include war, civil commotion, act of terrorism, hijacking, strike, walkout, industrial dispute, fire, explosion, storm, tempest, flood, act or omission of any governmental, licensing or other similar body or of a person or body for the time being exercising the power and authority of such body (whether in the United States of America or elsewhere) or any further cause not within the direct control of Bank) Bank shall be under no liability whatsoever in respect thereof and the time for delivery by Bank shall be extended for a period equal to that during which delivery is so prevented, hindered or delayed; however, notwithstanding the foregoing, Bank may, if it so chooses, by notice in writing given to the Consignees, advise that it will not make the delivery affected by the force majeure.

Bank shall not be liable for any loss arising on or in connection with any lack of delivery of silver to the Consignees hereunder as a result of moratorium, currency restrictions or changes thereof.

30.No Obligation to Deliver or Renew a Consignment.  Execution of this Agreement shall not obligate Bank to deliver silver or to renew a Consignment term pursuant to any request that it may receive from the Consignees; nor does it obligate the Consignees to request the delivery of silver.  The Consignees shall have no automatic right to obtain the delivery of silver hereunder or to renew a Consignment term despite making the appropriate request and notwithstanding the occurrence or non-occurrence of an Event of Default hereunder.  Bank shall have complete discretion to refuse any delivery or renewal request at any time until actual delivery or actual renewal of the Consignment without giving any reason for any such refusal and Bank shall incur no liability in respect of any such refusal.

31.True Consignment.  The Parties intend that this Agreement shall provide for a true consignment and that all transactions hereunder shall constitute true consignments of the silver.  The Consignees authorize the Bank to file UCC financing statements to reflect the Consignments made hereunder.

32.Choice of Forum; Service of Process.  Consignees and Bank irrevocably consent and submit to the non-exclusive jurisdiction of the federal and state courts located in New York County, New York and waive any objection based on venue or forum non conveniens with respect to any actions instituted therein arising under this Agreement or in any way connected with or incidental or related to the dealings of the Parties hereunder.  Consignees waive personal service of process of any and all process upon it and consents that all such process may be made by certified mail (return receipt requested) to its address set forth herein and shall be deemed to be completed five (5) days after deposit in the U.S. mails or at Bank's option in any manner provided under the rules of such courts.  Within thirty (30) days Consignees shall appear to answer to such process, failing which Consignees shall be deemed in default and judgment shall be entered by Bank for the amount of the claim and relief requested.

33.JURY WAIVER.  CONSIGNEES AND BANK EACH HEREBY WAIVE ANY RIGHT TO TRAIL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES.

If the foregoing terms and conditions are satisfactory, please so indicate by executing on the enclosed copy of this letter the form of acceptance and returning it to us on or before __________ __, 2007 failing which this offer will expire.

Yours truly,

HSBC BANK USA, NATIONAL ASSOCIATION

By: /s/ Richard Seufert

    Name: Richard Seufert

    Title: First Vice President

 

 

ACCEPTED:

Dated: March 30, 2007.

AMI DODUCO, INC.

By: /s/ Drew A. Moyer

    Name: Drew A. Moyer

    Title: General Manager

 

TECHNITROL, INC.

By: /s/ Drew A. Moyer

    Name: Drew A. Moyer

    Title: Senior Vice President, CFO

 

# 1461027 v8

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