Document:

EX 10.4

    Exhibit
      10.4

     

    MSTI
      Holdings, Inc.

    259-263
      Goffle Road

    Hawthorne,
      New Jersey 07506

    

    September
      6, 2007

    

    

    To
      the
      Investors of Units:

    

    
      	 	
              Re:

            	
              Waiver
                of Certain Provisions of the Registration Rights Agreement, as
                amended

            

    

    

    Reference
      is made to that certain Registration Rights Agreement dated May 24, 2007 (the
      “Agreement”),
      as
      supplemented by the addendum thereto, dated as of May 24, 2007 (the
“Addendum”),
      by
      and among MSTI Holdings, Inc., a Delaware corporation (the “Company”),
      and
      each investor identified on the signature pages thereto (each, including its
      successors and assigns, a “Investor”
and,
      collectively, the “Investors”).
      Capitalized terms used herein and not otherwise defined shall have the meanings
      ascribed to them in the Agreement.

     

    Extension
      of Effectiveness Date

     

    Pursuant
      to Section 1.2(a) of the Agreement, the Company must cause the Initial
      Registration Statement to be declared effective by the Commission by the
      Effectiveness Date. Pursuant to Section 1.2(b), if the Initial Registration
      Statement is not declared effective by the Commission by the Effectiveness
      Date,
      on such Effectiveness Date and on each monthly anniversary of such Effectiveness
      Date (if such Registration Statement has not been declared effective by the
      Commission by such date) until such Registration Statement is declared effective
      by the Commission, the Company shall pay to each Investor an amount in cash,
      as
      partial liquidated damages.

     

    The
      Company does not believe that it can cause the Initial Registration Statement
      to
      be declared effective by the Commission by the current Effectiveness Date.
      The
      undersigned Investors hereby grant the Company a one-time extension of the
      Effectiveness Date for the Initial Registration Statement to November 21, 2007
      (the “Extension
      Date”).
      Accordingly, the
      undersigned Investors hereby waive any non-compliance with the aforementioned
      Section 1.2(b) of the Agreement with respect to the Initial Registration
      Statement, and waive any Default or Event of Default, and any breach or
      threatened breach, arising under the Agreement or any Transaction Document,
      including, without limitation, the Debentures and the Warrants, and waive any
      and all penalties, damages, and claims, including, without limitation, any
      and
      all liquidated damages, resulting or that could result, as a result of the
      Initial Registration Statement being declared effective on or before the
      Extension Date and not being declared effective by the Effectiveness Date.
      Notwithstanding the foregoing, in the event that the Initial Registration
      Statement is not declared effective by the Extension Date, the Event Date for
      purposes of Section 1.2(b)(iv) of the Agreement shall remain the Effectiveness
      Date.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Waiver
      of Other Provisions

     

    Pursuant
      to Section 1.2(b) of the Agreement, if prior to the effective date of a
      Registration Statement, 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 Trading Days after the receipt of comments
      by or notice from the Commission that such amendment is required in order for
      such Registration Statement to be declared effective, the Company shall pay
      to
      each Investor an amount in cash, as partial liquidated damages. Pursuant to
      paragraph 5 of the Addendum, not less than 5 Trading Days prior to the filing
      each such Registration Statement, the Company shall furnish to each Investor
      copies of all documents proposed to be filed. 

     

    The
      undersigned Investors hereby grant the Company a one-time waiver in order to
      waive any non-compliance with the aforementioned Section 2(b) of the Agreement
      and paragraph 5 of the Addendum with respect to comments made by the Commission
      on August 21, 2007 (the “SEC
      Comment Letter”)
      and
      waive any Default or Event of Default, and any breach or threatened breach,
      arising under the Agreement or any Transaction Document, including, without
      limitation, the Debentures and the Warrants, and waive any and all penalties,
      damages, and claims, including, without limitation, any and all liquidated
      damages, resulting or that could result, as a result of the Company’s failure to
      file a pre-effective amendment within 10 Trading Days of receiving the SEC
      Comment Letter and to furnish the Investors with copies of all such documents
      proposed to be filed in response to the SEC Comment Letter 5 Trading Days prior
      to filing such documents with the Commission.

     

    The
      Company hereby represents and warrants to the Investors that there is no other
      Default or Event of Default under the Agreement except as described
      herein.

     

    Subject
      to the waivers provided herein, the Agreement shall remain in full force and
      effect. Except as expressly set forth herein, this letter agreement shall not
      be
      deemed to be a waiver, amendment or modification of any provisions of the
      Agreement or of any right, power or remedy of the Investors, or constitute
      a
      waiver of any provision of the Agreement (except to the extent herein set
      forth), or any other document, instrument and/or agreement executed or delivered
      in connection therewith, in each case whether arising before or after the date
      hereof or as a result of performance hereunder or thereunder. The Investor
      reserves all rights, remedies, powers, or privileges available under the
      Agreement, at law or otherwise. This letter agreement shall not constitute
      a
      novation or satisfaction and accord of the Agreement or any other document,
      instrument and/or agreement executed or delivered in connection
      therewith.

     

    Except
      as
      expressly provided above, nothing contained in this letter or any other
      communication between the Company and the Investors shall constitute a waiver
      of
      any past, present or future violation, Default or Event of Default of the
      Company under the Agreement. Similarly, except as expressly set forth in this
      letter agreement, the Investors hereby expressly reserve any rights, privileges
      and remedies under the Agreement that it may have with respect to any violation,
      Default or Event of Default.

     

    The
      Company hereby agrees and covenants that it will file a current report on Form
      8-K with the Commission disclosing the material terms of this letter agreement
      by 9:30 a.m. Eastern

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    time
      on
      the first Trading Day immediately following the execution of this letter
      agreement by the Company and Investors holding a majority of the outstanding
      Registrable Securities (the “Majority
      Investors”).

     

    Please
      indicate your acknowledgment of and agreement to the foregoing by signing a
      copy
      of this letter and returning an executed original to the Company.
Pursuant
      to Section 4.2 of the Agreement, this letter will become effective and binding
      on all of the Investors upon execution of this letter agreement by the Majority
      Investors. This letter agreement may be executed by the parties hereto in
      counterparts, and execution may be evidenced by facsimile or other electronic
      transmission of a signed signature page by any party hereto, and all of such
      counterparts together shall constitute one and the same instrument.

     

    Sincerely,

     

     

    Frank
      Matarazzo

    Chief
      Executive Officer

    

    

    ACCEPTED
      AND AGREED:

    

    “Investor”

    

    

    _____________________________

    [print
      name above line]

     

     

    Dated:_______________,
      2007

    By:_______________________________

    Name:_____________________________

    Title: 
      _____________________________EX 10.5

    Exhibit
      10.5

     

    MSTI
      Holdings, Inc.

    259-263
      Goffle Road

    Hawthorne,
      New Jersey 07506

    

    September
      6, 2007

    

    DKR
      SoundShore Oasis Holding Fund Ltd.

    Attn:
      Rajni Narasi

    1281
      East
      Main Street

    Stamford,
      CT 06902 

    

    Alpha
      Capital Anstalt

    c/o
      LH
      Financial

    160
      Central Park South

    Suite
      2701

    New
      York,
      NY 10019

    

    Gemini
      Master Fund, Ltd.

    c/o
      Gemini Strategies, LLC

    12220
      El
      Camino Real, #400

    San
      Diego, CA 92130

    

    Whalehaven
      Capital Fund Limited

    14
      Par-La-Ville Road

    3rd
      Floor

    Hamilton,
      Bermuda HM08

    

    CMS
      Capital

    c/o
      Nissim

    9612
      Van
      Nuys Blvd., #108

    Panorama
      City, CA 91402

    

    Brio
      Capital L.P.

    401
      E.
      34th
      Street

    Suite
      South 33C

    New
      York,
      NY 10016

    

    Dear
      Sirs: 

    

     

    Reference
      is made to that certain Registration Rights Agreement dated as of May 25, 2007
      (the “Agreement”),
      by
      and among MSTI Holdings, Inc., a Delaware corporation (the “Company”),
      and
      each entity identified on the signature pages thereto (each, including its
      successors and assigns, a “Purchaser”
and,
      collectively, the “Purchasers”).
      Capitalized terms used herein and not otherwise defined shall have the meanings
      ascribed to them in the Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Extension
      of Effectiveness Date

     

    Pursuant
      to Section 1 of the Agreement, the Company must cause the Initial Registration
      Statement to be declared effective by the Commission by the Effectiveness Date.
      Pursuant to Section 2(b), if the Initial Registration Statement is not declared
      effective by the Commission by the Effectiveness Date, on such Effectiveness
      Date and on each monthly anniversary of such Effectiveness Date (if such
      Registration Statement has not been declared effective by the Commission by
      such
      date) until such Registration Statement is declared effective by the Commission,
      the Company shall pay to each Purchaser an amount in cash, as partial liquidated
      damages.

     

    The
      Company does not believe that it can cause the Initial Registration Statement
      to
      be declared effective by the Commission by the current Effectiveness Date.
      The
      undersigned Purchasers hereby grant the Company a one-time extension of the
      Effectiveness Date for the Initial Registration Statement to November 21, 2007
      (the “Extension
      Date”).
      Accordingly, the undersigned Purchasers hereby waive any non-compliance with
      the
      aforementioned Section 2(b) of the Agreement with respect to the Initial
      Registration Statement, and waive any Default or Event of Default, and any
      breach or threatened breach, arising under the Agreement or any Transaction
      Document, including, without limitation, the Debentures and the Warrants, and
      waive any and all penalties, damages, and claims, including, without limitation,
      any and all liquidated damages, resulting or that could result, as a result
      of
      the Initial Registration Statement being declared effective on or before the
      Extension Date and not being declared effective by the Effectiveness Date.
      Notwithstanding the foregoing, in the event that the Initial Registration
      Statement is not declared effective by the Extension Date, the Event Date for
      purposes of Section 2(b)(iv) of the Agreement shall remain the Effectiveness
      Date.

     

    Waiver
      of Other Provisions

     

    Pursuant
      to Section 2(b) of the Agreement, if prior to the effective date of a
      Registration Statement, 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 Trading Days after the receipt of comments
      by or notice from the Commission that such amendment is required in order for
      such Registration Statement to be declared effective, the Company shall pay
      to
      each purchaser an amount in cash, as partial liquidated damages. Pursuant to
      Section 3(a), not less than 5 Trading Days prior to the filing each such
      Registration Statement, the Company shall furnish to each Purchaser copies
      of
      all documents proposed to be filed. 

     

    The
      undersigned Purchasers hereby grant the Company a one-time waiver in order
      to
      waive any non-compliance with the aforementioned Sections 2(b) and 3(a) of
      the
      Agreement with respect to filing a response to comments made by the Commission
      on August 21, 2007 (the “SEC
      Comment Letter”)
      and
      waive any Default or Event of Default, and any breach or threatened breach,
      arising under the Agreement or any Transaction Document, including, without
      limitation, the Debentures and the Warrants, and waive any and all penalties,
      damages, and claims, including, without limitation, any and all liquidated
      damages, resulting or that could result, as a result of the Company’s failure to
      file a pre-effective amendment within 10 Trading Days of receiving the SEC
      Comment Letter and to furnish the Purchasers with copies of all such documents
      proposed to be filed in response to the SEC Comment Letter 5 Trading Days prior
      to filing such documents with the Commission.

     

    The
      Company hereby represents and warrants to the Purchasers that there is no other
      Default or Event of Default under the Agreement except as described
      herein.

     

    Subject
      to the waivers provided herein, the Transactions Documents shall remain in
      full
      force and effect. Except as expressly set forth herein, this letter agreement
      shall not be deemed to be a waiver, amendment or modification of any provisions
      of the Transaction Documents or of any right, power or remedy of the Purchasers,
      or constitute a waiver of any provision of the Transaction Documents
      (except

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    to
      the
      extent herein set forth), or any other document, instrument and/or agreement
      executed or delivered in connection therewith, in each case whether arising
      before or after the date hereof or as a result of performance hereunder or
      thereunder. The Purchaser reserves all rights, remedies, powers, or privileges
      available under the Transaction Documents, at law or otherwise. This letter
      agreement shall not constitute a novation or satisfaction and accord of the
      Transaction Documents or any other document, instrument and/or agreement
      executed or delivered in connection therewith.

     

    Except
      as
      expressly provided above, nothing contained in this letter or any other
      communication between the Company and the Purchasers shall constitute a waiver
      of any past, present or future violation, Default or Event of Default of the
      Company under the Agreement. Similarly, except as expressly set forth in this
      letter agreement, the Purchasers hereby expressly reserve any rights, privileges
      and remedies under the Agreement that it may have with respect to any violation,
      Default or Event of Default.

     

    The
      Company hereby agrees and covenants that it will file a current report on Form
      8-K with the Commission disclosing the material terms of this letter agreement
      by 9:30 a.m. Eastern time on the first Trading Day immediately following the
      execution of this letter agreement by the Company and Purchasers holding a
      majority of the outstanding Registrable Securities (including for this purpose
      any Registrable Securities issuable upon conversion of the Debentures or
      exercise of the Warrants) (the “Majority
      Purchasers”).

     

    Please
      indicate your acknowledgment of and agreement to the foregoing by signing a
      copy
      of this letter and returning an executed original to the Company.
Pursuant
      to Section 6(f) of the Agreement, this letter agreement will become effective
      and binding on all of the Purchasers upon obtaining (i) the executed signature
      pages of the Majority Purchasers and (ii) the executed signature pages of
      investors holding a majority of the units to that certain waiver letter attached
      hereto as Exhibit A. This letter agreement may be executed by the parties hereto
      in counterparts, and execution may be evidenced by facsimile or other electronic
      transmission of a signed signature page by any party hereto, and all of such
      counterparts together shall constitute one and the same instrument.

     

    

    

    Sincerely,

     

     

    Frank
      Matarazzo

    Chief
      Executive Officer

    

    

    

    ACCEPTED
      AND AGREED:

    

    Dated:_______________,
      2007

     

    By:_______________________________

    Name:_____________________________

    Title:______________________________

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