Document:

Execution
      Version

    
 

    SHARE
      PURCHASE AGREEMENT

     

    This
      SHARE PURCHASE AGREEMENT (this “Agreement”), dated 28 December 2007, is entered
      into 

     

    BY
      AND
      BETWEEN

     

    Mr.
      Manfred Knütel, Ch. Des Vignes-Perdues 15, CH-2022 Bevaix, and Mr.
      Hans-Peter Salvisberg, Schlossallee 9 ; CH 3280 Greng, (Switzerland)
(the
      “Sellers”)

     

    AND

     

    MEAS
      Europe, a corporation existing under the laws of France, with its corporate
      seat
      at 105, Avenue du General-Eisenhower, BP 1036, 31023 Tolouse Cedex (the “Buyer”)
      and Measurement Specialties, Inc., a New Jersey (USA) corporation
      (“Guarantor”).

     

    WITNESSETH

    

    WHEREAS,
      the Sellers own 100% of the capital stock of Intersema Microsystems S.A., a
      corporation (société
      anonyme)
      established under the laws of Switzerland, with its corporate seat at 11, chemin
      des Chapons des Prés, 2022 Bevaix (Switzerland) (“IMSA”);

     

    WHEREAS,
      IMSA owns 100% of the capital stock of Intersema Sensoric SA, a corporation
      (société
      anonyme)
      established under the laws of Switzerland, with its corporate seat at 11, chemin
      des Chapons des Prés, 2022 Bevaix (Switzerland) (“ISSA”);

     

    WHEREAS,
      the Sellers are willing to sell, and the Buyer is willing to purchase all of
      the
      capital stock of IMSA on the terms and conditions contained herein;

     

    NOW
      THEREFORE, in consideration of the promises and the mutual agreements contained
      herein, the parties agree as follows:

     

    Article
      1: DEFINITIONS

     

    Terms
      expressed in capital letters in this Agreement are used as defined in this
      Article or elsewhere in the Agreement.

     

    “Acknowledgements
      of Debt”
shall
      have the meaning specified in Section 3.2 of this Agreement.

     

    “Buyer”
shall
      have the meaning specified at the beginning of this Agreement.

     

    
      59250.000016
        ATLANTA 704414v11
“Cash”
shall
      have the meaning specified in Article 3, ingress, of this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Closing”
shall
      mean the closing of the transactions contemplated by this
      Agreement.

     

    “Closing
      Date”
shall
      have the meaning specified in Section 4.1 of this Agreement.

     

    “Deemed
      Dividend Distribution”
shall
      mean benefits (i) granted to a shareholder or a related party for which neither
      IMSA nor ISSA receives adequate compensation and (ii) which would not be granted
      to an independent third party on such terms and conditions.

     

    “EBITDA”
shall
      mean earnings before interest, taxes, depreciation and amortization, determined
      in accordance with GAAP and ISSA’s historical practices.

     

    “Earn-Out”
shall
      have the meaning specified in Section 3.3 of this Agreement.

     

    “Excess
      Net Cash”
shall
      mean eighty percent (80%) of the Net Cash of IMSA and ISSA, in excess of 1
      (one)
      million CHF, as estimated in good faith by the parties no later than 3 (three)
      working days prior to the Closing Date. For the avoidance of doubt, if the
      Net
      Cash of IMSA and ISSA is eleven (11) million CHF, the Excess Net Cash shall
      equal eight (8) million CHF (80% of (11 million CHF-1 million CHF).

     

    “Financial
      Statements”
shall
      have the meaning specified in Section 5.6 of this Agreement.

     

    “Fundamental
      Representations”
shall
      mean any of the Sellers’ representations and warranties set forth in any of
      Sections 5.1 (Organization and Standing), 5.2 (Authority and Enforceability),
      5.3 (No Conflict), 5.4 (Ownership of the Shares), and 5.5 (Ownership of the
      shares of ISSA) of this Agreement.

     

    “GAAP”
shall
      mean the accounting rules as per the Swiss Code of Obligations applied on a
      consistent basis.

     

    “IMSA”
shall
      have the meaning specified in the preamble.

     

    “ISSA”
shall
      have the meaning specified in the preamble.

     

    “Net
      Cash”
shall
      mean the sum of the cash of IMSA according to balance sheet line item no. 1020
      and of ISSA according to balance sheet line items no. 1000, 1010, 1020, 1021,
      1022, 1024, 1025, 1026, 1050, 1051 and 1052, plus the sum of the claims of
      ISSA
      according to balance sheet line items no. 14601 and 14602, all as per the
      Closing Date as estimated by the parties in good faith no later than 3 (three)
      working days prior to the Closing Date and all in CHF, converted, if need be,
      into CHF at the exchange rates as per the Closing Date as estimated by the
      parties in good faith no later than 3 (three) working days prior to the Closing
      Date.

     

    “Ordinary
      Future Profits”
shall
      mean profits derived from the current ordinary business activity of IMSA and
      ISSA after Closing, excluding extraordinary profits derived from (i) dissolution
      of hidden reserves and provisions existing as per December 31, 2006 due to
      conversion of Swiss GAAP to United States GAAP and (ii) dissolution of any
      other
      hidden reserves and provisions existing as per December 31, 2006.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Purchase
      Price”
shall
      mean all the purchase price elements specified in Article 3 of this Agreement.
      

     

    “Sellers”
shall
      have the meaning specified at the beginning of this Agreement.

     

    “Shares”
means
      100% (one hundred percent) of the capital stock of IMSA.

     

    “Signing
      Date”
shall
      mean the date of the signing of this Agreement which is the date first above
      mentioned.

     

    “Third
      Party Claims”
shall
      have the meaning specified in Section 8.3 of this Agreement.

     

    Article
      2: SALE
      OF
      SHARES - TRANSFER OF OWNERSHIP

     

    2.1 Sale
      of Shares.
      Upon
      the terms and subject to the conditions of this Agreement, the Sellers
      irrevocably undertake to sell to the Buyer, and the Buyer agrees to irrevocably
      buy from the Sellers upon the same terms and subject to the same conditions,
      the
      Shares.

     

    2.2 Transfer
      of Ownership.
      Transfer of ownership in the Shares shall take place on the Closing Date. The
      Buyer shall have full ownership and enjoyment of the Shares as from the Closing
      Date with all rights associated thereto, including all dividend rights which
      shall be voted subsequently to the Closing Date.

     

    Article
      3: PURCHASE
      PRICE

     

    The
      sale
      of the Shares is hereby agreed and accepted for a purchase price of 27
      (twenty-seven) million CHF, plus Excess Net Cash (together the “Cash”), plus the
      Acknowledgements of Debt and, provided certain conditions are met, the Earn-Out.
      The Purchase Price shall be paid as follows:

     

    3.1 Cash.
      The
      Buyer shall pay the Cash at Closing as specifically set forth in Exhibit
      N.

     

    3.2 Acknowledgements
      of Debt.
      Each of
      the Sellers shall receive at Closing a 5 (five) million CHF acknowledgement
      of
      debt from the Buyer, payable, subject to Section 8.4 of this Agreement, in
      4
      (four) annual installments of 1.25 (one point twenty-five) million CHF to each
      of the Sellers, to the accounts designated by each of the Sellers) (the
“Acknowledgements of Debt”). The Acknowledgements of Debt shall be substantially
      in the form attached hereto as Annex
      1.
      The
      Acknowledgements of Debt shall bear interest on the outstanding principal at
      the
      rate of 4.5% (four point five percent) per annum, resulting in the payment
      to
      each of the Sellers of a 0.55 (zero point fifty-five) million CHF in interest
      over the duration of the Acknowledgement of Debt to each of the Sellers, to
      the
      accounts designated by each of the Sellers.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    3.3 Earn-Out.
      Provided certain EBITDA thresholds as specified hereafter are achieved during
      the calendar year 2009, and subject to Section 8.4 of this Agreement, the
      Sellers shall receive up to an additional 20 (twenty) million CHF (the
“Earn-Out”) according to the following terms. 

     

    
      	 	
              (i)

            	
              The
                Sellers shall receive from the Buyer 100% (one hundred percent) of
                the
                Earn-Out (+i.e. 50% of the Earn-Out to each of the Sellers, to the
                accounts designated by each of the Sellers) if ISSA’s EBITDA for calendar
                year 2009 is greater than 7.5 (seven point five) million
                CHF.

            

    

     

    
      	
            	(ii)	
              The
                Sellers shall not receive any of the Earn-Out from the Buyer if ISSA’s
                EBITDA for calendar year 2009 is less than 5.3 (five point three)
                million
                CHF.

            

    

    

    
      	
            	(iii)	
              If
                ISSA generates EBITDA between 5.3 (five point three) and 7.5 (seven
                point
                five) million CHF, the Earn-Out shall be paid pro-rata (i.e. 50%
                of the
                pro-rated Earn-Out to each of the Sellers, to the accounts designated
                by
                each of the Sellers) (for example, if 2009 EBITDA is 6.4 (six point
                four)
                million CHF, Sellers shall receive from the Buyer 10 million CHF
                under the
                earn-out ((6.4-5.3)/(7.5-5.3) *
                20).

            

    

    

    Subject
      to Section 8.4 of this Agreement, the Earn-Out shall be paid within 15 (fifteen)
      days following the date of approval of the unaudited 2009 financial statements
      by the shareholders of ISSA which shall occur at the latest on March 31,
      2010.

     

    The
      Buyer
      shall use all commercially reasonable efforts to maximize ISSA’s EBITDA during
      the calendar year 2009. The Buyer shall in particular abstain from having
      charged to ISSA any management fees and, except as required by applicable law
      or
      tax rules or regulation, royalty payments, by related companies and any costs
      in
      excess of an amount that would be at arm’s length.

     

    Article
      4: CLOSING;
      TRANSACTIONS

     

    4.1 Closing.
      The
      Closing shall be held on the date hereof (the “Closing
      Date”)
      at the
      offices of Walder Wyss & Partners, Zurich (Switzerland), or such other place
      and time as the parties hereto shall designate.

     

    4.2 Closing
      Transactions and Deliveries.
      The
      Sellers and the Buyer hereby agree that, at the Closing, the following actions
      shall occur simultaneously:

     

    (a) Purchase
      and Sale of the Shares.
      Upon
      the terms and conditions contained in this Agreement and in consideration of
      the
      Purchase Price, (i) the Sellers shall sell and transfer the Shares of IMSA
      to
      the Buyer and the Buyer shall purchase and accept the transfer of the Shares
      of
      IMSA. 

     

    (b) Delivery
      of the Shares.
      The
      Sellers shall (i) deliver the share certificates of IMSA representing all of
      the
      Shares duly endorsed in a manner legally sufficient, under applicable laws,
      to
      transfer to the Buyer the full ownership of, and good and valid title to, the
      Shares (ii) deliver IMSA's board resolution approving the transfer of all of
      the
      Shares to the Buyer in accordance with IMSA's articles of association, (iii)
      remit the shareholders’ registry of IMSA to the Buyer, (iv) execute the transfer
      of the Shares in the shareholders’ registry of IMSA, and (v) provide all
      documents and take all actions which are necessary to transfer good and valid
      title to the Shares to the Buyer and to accurately reflect ownership of the
      Shares in the shareholders’ registry of IMSA.

     

    
      
        
        

      

      
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    (c) Resignation
      of the Members of the Board of Directors of IMSA and ISSA.
      The
      Sellers shall deliver to the Buyer documents evidencing the resignation,
      effective as of the Closing Date, of the members of the board of directors
      of
      IMSA and of ISSA.

     

    (d) Delivery
      of Release Certificate or Bank Cashier’s Check.
      The
      Buyer shall deliver to the Sellers the evidence of irrevocable wire transfers
      to
      the bank accounts designated by the Sellers no later than 3 (three) working
      days
      before the Closing Date representing the Buyer’s payment of the Cash in
      accordance with the provisions of Section 3.1 of this Agreement.

     

    (e) Execution
      of the Acknowledgements of Debt.
      The
      Sellers and the Buyer shall execute the Acknowledgements of Debt.

     

    (f) Employment
      Agreements.
      ISSA
      and the Sellers shall enter into the employment agreements substantially in
      the
      form attached hereto as Annex
      2.

     

    Article
      5: REPRESENTATIONS
      AND WARRANTIES OF THE SELLERS

     

    The
      Sellers hereby represents and warrants to the Buyer as follows:

     

    5.1 Organization
      and Standing of IMSA and ISSA.
      Each of
      IMSA and ISSA (i) are corporations duly incorporated, validly existing and
      in
      good standing under the Laws of Switzerland, (ii) have the requisite corporate
      power to carry on its business as now being conducted and to own or lease the
      properties it now owns or leases, and (iii) is duly qualified in good standing
      in each jurisdiction in which the conduct of its business requires such
      qualification.

     

    5.2 Authority
      and Enforceability.
      The
      Sellers have full power, right and authority to execute this Agreement and
      to
      complete the transactions contemplated hereby. The Agreement has been duly
      executed by the Sellers and constitutes the legal, valid and binding obligation
      of the Sellers, enforceable against the Sellers in accordance with its terms.
      Each decision taken by IMSA and ISSA since September 30, 2004 has been taken
      in
      accordance with the applicable provisions of the corporate charter of such
      companies. True and complete copies of the corporate charter and other
      constituent documents of IMSA and ISSA, of the amendments thereto and of all
      minutes of meetings of the shareholders or directors of IMSA and ISSA held
      since
      September 30, 2004 have been delivered to the Buyer. Neither IMSA nor ISSA
      has
      ever become insolvent or has been the subject of any bankruptcy, liquidation,
      or
      other procedure applicable to companies in difficulties such as detection and
      administration orders by a Commercial Court.

     

    
      
        
        

      

      
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    5.3 No
      Conflict.
      Neither
      the execution of this Agreement nor the execution of the transactions
      contemplated hereby will conflict with, result in any violation of, or
      constitute an infringement under (i) any provisions of the corporate charter
      of
      IMSA, (ii) any judgment or injunction of any court or administrative authority
      that is binding upon the Sellers, (iii) any law or regulation of Switzerland,
      its cantonal or administrative authorities, or any jurisdiction in which the
      Sellers are doing business, or (iv) any contract to which the Sellers, IMSA
      or
      ISSA are a party.

     

    5.4 Ownership
      of the Shares.
      The
      Sellers are the owner of the records of the Shares and have good and marketable
      title to the Shares, free and clear of all liens, encumbrances, preemptive
      rights or claims of any kind of any third party. The Shares constitute 100%
      (one
      hundred percent) of the outstanding shares of capital stock of IMSA. To the
      best
      of the Sellers’ knowledge full title to the Shares will pass to the Buyer on the
      Closing Date, free and clear of all liens, encumbrances, preemptive rights
      or
      claims of any kind of any third party.

     

    5.5 Ownership
      of the shares of ISSA.
      IMSA is
      the owner of the records of 100% (one hundred percent) of the shares of ISSA
      and
      has good and marketable title to the shares of ISSA, free and clear of all
      liens, encumbrances, preemptive rights or claims of any kind of any third party.
      The shares of ISSA held by IMSA constitute 100% (one hundred percent) of the
      outstanding shares of capital stock of ISSA. 

     

    5.6 Financial
      Statements.
      Exhibit
      A
      contains
      copies of (i) the audited balance sheet of IMSA and ISSA as of December 31,
      2006, as of December 31, 2005, and as of December 31, 2004 together with the
      related profit and loss statements and the notes thereto for the fiscal years
      ending on such dates as specified, in each case audited by PWC
      PricewaterhouseCoopers AG, Neuchatel; and (ii) the unaudited balance sheet
      of
      IMSA and ISSA as at October 31, 2007 together with the related profit and loss
      statements and the notes thereto for the period starting on January 1, 2007
      and
      ending on October 31, 2007 (collectively (i) and (ii), the “Financial
      Statements”).

     

    The
      Financial Statements (i) have been prepared from, and are consistent with,
      the
      books and records of IMSA and of ISSA respectively, especially with regard
      to
      the provisions and reserves, and (ii) fairly represent, in accordance with
      Swiss
      GAAP, the financial position of IMSA and of ISSA as of their respective dates,
      and the related results of their operations for the financial periods ending
      on
      such dates.

     

    5.7 Properties.
      

     

    (a) Real
      Property.
      Exhibit
      B
      contains
      a true and complete list of all items of real property that IMSA and ISSA own
      and of all leases pursuant to which they occupy real property as tenants. Except
      as specifically set forth in Exhibit
      B,
      to the
      best of Sellers’ knowledge these properties have been constructed and operated
      in accordance with all applicable building codes and planning permissions,
      pollution control, safety and other laws and regulations of local governments
      and administrative authorities.

     

    
      
        
        

      

      
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    (b) Machinery
      and Equipment.
      Except
      as disclosed in Exhibit
      C
      all
      items of machinery and equipment actually used in the production are used by
      IMSA and ISSA for their intended purposes and are in good operating conditions
      and state of repair. They have been operated and are currently operated in
      accordance with all applicable laws and regulations.

     

    (c) Intellectual
      Property Rights.
      Exhibit
      D
      contains
      a true and complete list of all registered patents, internet domain names and
      trademarks of IMSA and ISSA, all of which are valid and subsisting. Neither
      IMSA
      nor ISSA, has infringed or is currently infringing any intellectual property
      right of any third party.

     

    (d) Stock
      and Inventories.
      Except
      as disclosed in Exhibit
      E
      all
      stock and inventories of products and work in process as reflected in the
      Financial Statements physically existed at the date of this Agreement and were
      properly valued in accordance with Swiss GAAP.

     

    (e) Receivables.
      Except
      as disclosed in Exhibit
      F
      each
      account receivable contained in the Financial Statements or outstanding at
      the
      Closing Date is valid and existing, and arose or will have arisen in the
      ordinary course of IMSA’s or ISSA’s business. Except with respect to bad debt
      reserves as contained in the Financial Statements and except as disclosed in
      Exhibit
      F,
      each
      such account receivable is recoverable at its nominal value within customary
      deadlines, without requiring that any suit or administrative or judicial debt
      collection proceeding be launched against, any debtor.

     

    5.8 Insurance.
      Exhibit
      G
      contains
      a true and complete list of all insurance policies presently providing coverage
      of the assets or operations of IMSA and ISSA. Each of these policies is in
      full
      force and effect. They have been adequate in scope and amount to cover all
      prudent and reasonably foreseeable risks which have arisen in the conduct of
      IMSA’s and ISSA’s business prior to the date of this Agreement. IMSA and ISSA
      are not in breach of their obligations with respect to the payment of any
      premium or to the execution of their other duties with respect to these policies
      and, to the best of the Sellers’ knowledge, no fact exists which would afford
      the basis for any such policy to be voided on account of any act, omission
      or
      non-disclosure on the part of IMSA and ISSA.

     

    5.9 Authorizations.
      All
      material governmental licenses, authorizations, consents and approvals required
      for the operation of the business of IMSA and ISSA have been obtained and are
      in
      full force and effect. The business of IMSA and ISSA are and have been conducted
      in material compliance with the terms and conditions of all governmental
      licenses, authorizations, consents and approvals required for the operation
      of
      the business of IMSA and ISSA and in accordance with all applicable laws or
      regulations of any local government or administrative authority.

     

    
      
        
        

      

      
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    5.10 Taxes
      - Social Security.
      IMSA
      and ISSA have filed in due time all returns required by law in respect of all
      contributions or taxes, whether corporate income tax, customs, VAT, social
      security taxes, or any other tax, and each such return correctly reflects all
      information required to be reported thereon. All information provided in such
      returns, forms and declarations is true, complete and accurate in all material
      respects. Taxes attributable to IMSA and ISSA that were due and payable have
      been paid in due time. As of the date of this Agreement, IMSA and ISSA shall
      not
      have incurred any liability based on failure to pay taxes. There is no claim
      pending alleging that IMSA or ISSA has failed to pay any tax in due time and,
      to
      the best of the Sellers’ knowledge, no such claim is threatened. The Sellers do
      not know of any audit or investigation pending with respect to any liability
      of
      any of IMSA and ISSA for any tax. 

     

    5.11 Employees.
      IMSA’s
      and ISSA’s employment contracts conform to the applicable laws and collective
      bargaining agreements. IMSA and ISSA have fulfilled their funding obligations
      under all pension and benefit plans to which they have been required to
      contribute with respect to their employees. 

     

    5.12 Dispute.
      Except
      as listed in Exhibit
      H,
      there
      is no claim, legal action or arbitration by any party, including, but not
      limited to employees of IMSA and ISSA, pending or, to the best of the Sellers’
knowledge, threatened against IMSA and ISSA. 

     

    5.13 Contracts
      or other commitments.
      Except
      for the contracts listed in Exhibit
      I,
      IMSA
      and ISSA are not parties to any oral or written contract (i) that will continue
      for a period of more than 12 (twelve) months from the Closing Date without
      any
      possibility to give notice of termination without any adverse consequences
      as a
      result of such termination, or (ii) under which payments will be due by IMSA
      and
      ISSA in excess of CHF 50,000 (or the equivalent of this Agreement in any other
      currency), in aggregate, or (iii) that is not cancelable by IMSA and ISSA on
      notice of not longer than 90 (ninety) days and without liability, penalty or
      premium of any kind, or (iv) that is a loan or other financing agreement as
      borrower, lender, guarantor, grantor of security interest.

     

    The
      contracts listed in Exhibit
      I,
      are
      valid, binding and in full force and effect, enforceable in accordance with
      their respective terms, and, to the best of the Sellers’ knowledge, all their
      provisions materially conform with any national or regional law, regulation
      or
      authorization. To the best of the Sellers’s knowledge, IMSA and ISSA are not in
      default under any contract to which they are parties nor does exist any event
      which, with the passage of time or giving of notice, would constitute any such
      default. The Sellers have no knowledge of any cancellation of, or threat to
      cancel, any contract to which IMSA and ISSA are parties or of any pending
      bankruptcy, insolvency or similar proceeding with respect to any party to any
      such contract.

     

    Except
      as
      listed in Exhibit
      J,
      IMSA
      and ISSA have not made any commitment whatsoever to public, national or the
      cantonal authorities or agencies, labor organizations or any other party,
      relating to the amount of its investments or the number of its
      employees.

     

    
      
        
        

      

      
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    5.14 Environmental
      matters.
      Except
      as disclosed in Exhibit
      K,
      to the
      best of the Sellers’ knowledge, (i) IMSA and ISSA are conducting and have been
      conducting their business in material compliance with all applicable national
      or
      cantonal environmental laws and regulations, including but not limited to,
      laws
      and regulations relating to air and water pollution control and environmental
      waste, (ii) IMSA and ISSA have been issued with and operate in material
      compliance with all permits, certificates, licenses, approvals and other
      authorizations and registrations, if any, and have filed all notifications
      and
      reports relating to any chemical substance used in its business, air emissions,
      effluent discharges and any waste storage, treatment and disposal required
      in
      connection with the operation of its business, if any. There is no outstanding
      notice or violation, injunction, claim, suit or other proceeding,
      administrative, civil or criminal, pending or, to the best of Seller’s
      knowledge, threatened against IMSA and ISSA by any public regulatory or control
      entity, with respect to any alleged violation of any material environmental
      law
      or regulation, or with respect to any clean-up material, in connection with
      the
      conduct of its business. To the best of the Sellers’ knowledge all substances or
      wastes generated by IMSA and ISSA in the conduct of its business, which are
      subject to laws and regulations regarding their storage, treatment and disposal,
      if any, have been transported and stored in material compliance with such laws
      and regulations.

     

    5.15 Conduct
      of Business.
      Except
      as disclosed in Exhibit
      L
      since
      December 31, 2006, IMSA and ISSA have not:

     

    (a) incurred
      any liability or obligation, other than in the ordinary course of
      business;

     

    (b) failed
      to
      pay or discharge any material liability or obligation when it became due and
      payable;

     

    (c) sold,
      transferred or otherwise disposed of, mortgaged, pledged or subjected to lien
      or
      any other encumbrance any of their assets, whether tangible or intangible,
      or
      agreed to take any such action, except inventory items and other similar items
      in the ordinary course of business;

     

    (d) incurred
      any additional commercial bank or similar loans or amended the terms of, or
      extended the time for payment of, any such existing loan, or made any loans,
      advances or guarantees to any person or equity, including without limitation
      salary advances to any director, employee or officer, or agreed to take any
      such
      action;

     

    (e) suffered
      (i) any damage to or loss of assets used in their business, this damage or
      loss
      not being fully covered by insurance, which, individually, or on aggregate,
      have
      materially affected or are likely in the future to materially affect the
      financial condition, net worth or profitability of IMSA or ISSA, or (ii) any
      change in their business or financial condition, including, but not limited
      to,
      sales, costs or liabilities; 

     

    
      
        
        

      

      
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    (f) increased
      the annual compensation, commissions or other benefits of any director, officer
      or employee other than in the ordinary course of business in line with past
      practices; or

     

    (g) declared
      or made any dividend payment or any other payment or distribution to any
      shareholder, or redeemed or purchased or otherwise acquired any of their capital
      stock, or agreed to take any such action.

     

    5.16 Customers.
      Exhibit
      O
      contains
      a forecast of future sales by ISSA and IMSA to its twenty (20) largest
      customers. This forecast was prepared by the Sellers to their best knowledge,
      it
      being understood that such forecasts are always forward-looking statements
      and
      thus always somewhat speculative.

     

    5.17 Suppliers.
      Exhibit
      P
      contains
      a list of the ten (10) largest suppliers of raw materials for products of IMSA
      and ISSA for the twelve month period ending October 31, 2007. Except as
      disclosed in Exhibit
      P,
      in the
      last twelve (12) months, the Sellers have not received any written notice or
      have any actual knowledge that any such supplier intends to materially adversely
      modify its relationship with IMSA and ISSA (including, without limitation,
      material price increases or any material adverse modification to the
      availability of parts or materials).

     

    No
      statement made or given by the Sellers in this Agreement and no statement
      contained in any Exhibit to this Agreement contains any untrue statement of
      a
      material fact or omits to state any fact necessary, in light of the
      circumstances, in order to make such statement not misleading.

     

    Article
      6: GUARANTIES
      OF THE BUYER

     

    The
      Buyer
      guarantees to the Sellers as follows:

     

    6.1 Organization
      and Standing.
      The
      Buyer is a corporation duly incorporated, validly existing and in good standing
      under the laws of France.

     

    6.2 Authority
      and Enforceability.
      The
      Buyer has full power, right and authority to execute this Agreement and to
      complete the transactions contemplated hereby. The Agreement has been duly
      executed by the Buyer and constitutes the legal, valid and binding obligation
      of
      the Buyer, enforceable against the Buyer in accordance with its
      terms.

     

    6.3 No
      Conflict.
      Neither
      the execution of this Agreement nor the execution of the transactions
      contemplated hereby will conflict with, result in any violation of, or
      constitute an infringement under (i) any provisions of the corporate charter
      of
      Buyer; (ii) any judgment or injunction of any court or administrative authority
      that is binding upon the Buyer, (iii) any law or regulation of Switzerland,
      its
      cantonal or administrative authorities, or any jurisdiction in which the Buyer
      is doing business, or (iv) any contract to which the Buyer is a
      party.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    6.4 Consents.
      No
      consent, approval, order or authorization of, or registration, declaration
      or
      filing with any governmental, judicial or regulatory agency or authority is
      required with respect to the Buyer in connection with the execution, delivery
      or
      enforceability of this Agreement or the consummation of any of the transactions
      contemplated hereby.

     

    Article
      7: COVENANTS
      OF THE PARTIES RE: TAX MATTERS AND RELATED INDEMNIFICATION

     

    7.1 Post-Closing
      Covenant of the Buyer.
      During
      a five-year period starting on the Closing Date, the Buyer covenants and agrees
      that:

     

    (a) the
      Buyer
      shall not cause IMSA and ISSA to make any dividend payment or Deemed Dividend
      Distribution that would reduce distributable reserves/retained earnings existing
      according to those certain audited financial statements of IMSA and ISSA dated
      as of December 31, 2006;

     

    (b) the
      Buyer
      shall not merge IMSA and ISSA or either IMSA and ISSA with the Buyer or a
      company related to the Buyer;

     

    (c) the
      Buyer
      shall not create any security interest into the assets of IMSA and/or ISSA
      to
      secure loans to be used to finance the Purchase Price, provided, however, that
      Buyer shall be allowed to pledge the shares of IMSA or ISSA for such purpose
      or
      otherwise;

     

    (d) the
      Buyer
      shall not grant any loan from IMSA or ISSA or any of their subsidiaries to
      the
      Buyer or any affiliate of the Buyer to be used to finance the Purchase
      Price;

     

    (e) the
      Sellers acknowledge that there will be no other limitation on the distribution
      of Ordinary Future Profits than those listed in this Section 7.1.

     

    7.2 Indemnification
      by Buyer.
      In the
      event of breach of Section 7.1 by Buyer, the Buyer shall indemnify Sellers
      as
      the case may be for any damage suffered by the Sellers as a result of Buyer
      breach of Section 7.1 of this Agreement.

     

    Article
      8: INDEMNIFICATION
      BY THE SELLERS

     

    8.1 Indemnification
      Obligations.
      The
      Sellers shall be liable for, and shall indemnify the Buyer and hold them
      harmless for any and all damage suffered by the Buyer resulting from (i) any
      material breach, untruth or inaccuracy contained within and of the
      representations or warranties of the Sellers contained in this Agreement, (ii)
      the failure of the Sellers to comply with any of their obligations in this
      Agreement, and (iii) the failure of ISSA to transition to the new IS1030
      integrated circuit in a manner necessary to avoid any interruption of ordinary
      course sales by ISSA of finished product (notwithstanding any disclosures in
      Exhibit
      M
      related
      to such transition), it being understood that there is no damage if and to
      the
      extent (A) the matter giving raise to the respective claim of the Buyer has
      been
      fully provided for in the Financial Statements, (B) IMSA, ISSA or the Buyer
      is
      entitled to and receives an insurance payment which fully covers such damage,
      or
      (C) to the extent such damage was increased by the Buyer’s failure to mitigate
      the damages.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    8.2 Limitation
      of Indemnification Obligations.
      The
      Sellers shall have no obligation to indemnify the Buyer pursuant to Section
      8.1
      until the total damage exceeds 300,000 CHF. The obligations of the Sellers
      to
      indemnify the Buyer pursuant to Section 8.1, except with respect to Fundamental
      Representations, shall be limited to the lesser of (i) 15 (fifteen) million
      CHF
      or (ii) the sum of the Acknowledgements of Debt and Earn-Out, less the amount
      of
      the Acknowledgements of Debt and Earn-Out previously paid to the Sellers. The
      duration of the indemnification obligation of the Sellers shall be 2 (two)
      years
      from the Closing Date, with the exception of warranties and representations
      set
      forth in Sections 5.10 (Taxes-Social Security) and 5.14 (Environmental) of
      this
      Agreement in which case the duration of such obligation shall be 4 (four) years
      from the Closing Date. The Sellers shall not be released from their obligations
      under this Section 8 as a result of any knowledge that the Buyer has or may
      have
      of the situation, as a result, in particular, of any investigations made by
      the
      Buyer, its representatives and counsel except that the Sellers shall have no
      obligation to indemnify the Buyer pursuant to Section 8.1 if the matter giving
      raise to the respective claim of the Buyer has been fairly disclosed in
Exhibit
      M,
      which
      exhibit shall include only specific detailed disclosures. The approval of the
      financial statements for the fiscal year 2007 by the shareholders meeting of
      IMSA and/or ISSA shall not constitute, and shall not be regarded as
      constituting, a limitation in any way or waiver of the Buyer's right under
      this
      Section 8.

     

    8.3 Indemnification
      Procedure.
      The
      Buyer shall, at the latest after 30 business day after have learned of the
      relevant facts, provide the Sellers with notice of all third party actions,
      suits, proceedings, claims, demands or assessments subject to the
      indemnification provisions of this Article 8 (collectively “Third Party
      Claims”), brought at any time following the Closing Date of this Agreement, and
      shall otherwise make available all relevant information material to the defense
      of any Third Party Claims. The Sellers shall have the right to elect to
      participate in the defence of any such Third Party Claim at their sole expense,
      and no claim shall be settled or compromised without the consent of the Sellers
      unless the Sellers shall have failed, after the lapse of a reasonable time,
      but
      in no event more than 30 (thirty) days, after receiving notice of such a Third
      Party Claim, to participate in the defence of the same. If the Sellers wishes,
      it may control the defence of such litigation, at its own expense, insofar
      as
      such a claim relates to the liability of the Sellers. The Buyer’s failure to
      give notice in time or to provide copies of documents or to furnish relevant
      data in connection with any Third Party Claim shall constitute a defense (in
      part or in whole) to any claim for indemnification for the Sellers, even if
      such
      failure shall not result in any prejudice to the Sellers.

     

    Any
      indemnifiable claim that is not a Third Party Claim shall be asserted by written
      notice from the Buyer to the Sellers; any
      failure
      to give such notice will waive the rights of the Buyer even if the rights of
      the
      Sellers are not actually prejudiced. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    8.4 Set-off.
      The
      Buyer shall have the right to set off against the amounts due under the
      Acknowledgements of Debt and the Earn-Out, any claim which the Buyer might
      have
      against the Sellers, including, but not limited to claims for breaches of the
      representations and warranties contained in this Agreement.

     

    Article
      9: MISCELLANEOUS

     

    9.1 Amendment/Waivers.
      This
      Agreement may be amended only by the written agreement of the parties; any
      such
      written agreement shall specifically refer to this provision and the provision
      to be amended. Any provision of this Agreement may be waived only by an
      instrument in writing signed by the party or parties against whom or for which
      the enforcement of such waiver is sought, and such instrument shall specifically
      refer to this provision and the provision to be waived.

     

    9.2 Entire
      Agreement.
      This
      Agreement and the Exhibits and Annexes hereto constitute the entire Agreement
      between the parties with respect to the subject matter of this Agreement and
      supersede any other agreement between any of the parties with respect to such
      subject matter.

     

    9.3 Binding
      Effect/Assignment/Third Parties.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and permitted assigns. Any assignment of this
      Agreement or the rights hereunder by any of the parties without the prior
      written consent of the other parties shall be void. Nothing in this Agreement,
      express or implied, is intended to confer upon any person other than the parties
      any rights or remedies by virtue of this Agreement.

     

    9.4 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the substantive
      laws of Switzerland without regard to its conflict of laws
      principles.

     

    9.5 Disputes.
      Any
      dispute, controversy or claim arising out of, or in connection with, this
      Agreement shall be finally settled under the Rules of Arbitration of the
      International Chamber of Commerce in force on the date when the Notice of
      Arbitration is submitted in accordance with these Rules. The number of
      arbitrators shall be three. The seat of arbitration shall be in Geneva
      (Switzerland). The Arbitration shall be conducted in English.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    9.6 Notices.
      Any
      notice or other communication under this Agreement shall be in writing and
      shall
      be delivered by hand, telecopied or sent by registered or certified mail, return
      receipt requested, addressed as follows:

     

    If
      to the
      Sellers:

     

    Manfred
      Knütel

    Ch.
      Des
      Vignes-Perdues 15

    CH-2022
      Bevaix

    

    Telecopier:
      +41 32 847 9568

    

    Hans-Peter
      Salvisberg

    Schlossallee
      9

    CH
      3280
      Greng

    

    Telecopier:
      +41 32 847 9568

    

    With
      a
      copy to:M. Vischer

    Walder,
      Wyss & Partners

    Seefeldstrasse
      123

    P.O.
      Box
      1236

    CH-8034
      Zürich

    

    Telecopier:
      ++41 44 498 98 99

    

    If to
      the
      Buyer or the Guarantor:

    

    c/o
      Measurement Specialties, Inc.

    1000
      Lucas Way

    Hampton,
      VA 23666

    Attention:
      Frank Guidone, CEO

    

    Telecopier:
      +1 575-766-4347

    

    With
      a
      copy to: Joseph B. Alexander, Jr., Esq.

    Hunton
      & Williams LLP

    Bank
      of
      America Plaza, Suite 4100

    Atlanta,
      Georgia 30308-2216

    

    Telecopier:
      +1 404-602-9004

    

    Any
      such
      notice or communication shall be deemed to have been given when delivered (in
      the case of hand delivery), sent (in the case of telecopy) or received (in
      the
      case of registered mail).

     

    9.7 Severability.
      If any
      provision in this Agreement is or becomes invalid, illegal or incapable of
      being
      enforced by any rule of law or public policy, all other provisions of this
      Agreement will nevertheless remain in full effect so long as the economic or
      legal substance of the transactions contemplated by it is not affected in any
      material manner adverse to any of the parties. The parties shall nevertheless
      negotiate in good faith to replace any such invalid or unenforceable provision
      with a provision which so far as is reasonably possible leads to the same
      result.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    9.8 Liability.
      The
      liability of the Sellers under this Agreement shall be several and not joint
      and
      several, in proportion to their shareholdings in IMSA.

     

    9.9 Guarantee.
      In
      consideration of the Sellers entering into this Agreement, the Guarantor
      unconditionally and irrevocably guarantees to the Sellers pursuant to article
      111 of the Swiss Code of Obligations the due and punctual performance and
      observance by the Buyer of all the Buyer’s obligations, and the punctual
      discharge by the Buyer of all the Buyer’s liabilities to the Sellers, arising
      under this Agreement.
      Payments
      by the Guarantor to the Sellers pursuant to this Section 9.9 solely with respect
      to the obligations of the Buyer under the Acknowledgements of Debt shall be
      suspended so long as a Default or Event of Default (as each such term is defined
      in the Credit Agreement referred to below) exists and is continuing under that
      certain Amended and Restated Credit Agreement, dated as of April 3, 2006, among
      General Electric Capital Corporation for itself, as a lender, and as agent
      for
      the lenders party thereto from time to time, Guarantor, as borrower, and certain
      of Guarantor’s affiliates and subsidiaries (as the same now exists and may
      hereafter be amended, restated, supplemented or otherwise modified from time
      to
      time, the “Credit Agreement”).

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Execution
      Version

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be executed, where applicable, by their
      duly authorized respective representatives each as at the date first above
      written.

     

    
      	 	 	 	 
	
            	 	 	
              The
                Sellers:

            
	 	 	 	 
	
            	 	 	
              

              Name:
                Mr. Manfred Knütel 

            

    

     

    
      
        	 	 	 	 
	
              	 	 	
                

                
                  Name:
                    Mr. Hans-Peter
                    Salvisberg

                

              

      

    

     

    
      
        
          	
                	 	 	
                  The
                    Buyer:

                
	 	 	 	 
	 	 	 	
                  MEAS
                    Europe

                

        

      

       

    

    
      
        	 	 	
              	By:
	
              	 	 	
                
                  

                

              
	 	 	
              	Name:
	 	 	 	
                
                  
 

              
	 	 	
              	Title:
	 	 	 	
                
                  
 

              

      

    

    
       

      
        
          
            	
                  	 	 	
                    
                      The
                        Guarantor:

                    

                  
	 	 	 	 
	 	 	 	
                    
                      Measurement
                        Specialties, Inc.

                    

                  

          

        

        
           

          
            
              	 	 	
                    	By:
	
                    	 	 	
                      
                        

                      

                    
	 	 	
                    	Name:
	 	 	 	
                      
                        
 

                    
	 	 	
                    	Title:
	 	 	 	
                      
                        
 

                    

            

             

          

          
            
              
                
                  
                  

                

                
                  16

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

    

     

    ANNEXES

    

    
      	Annex 1	 	
               Acknowledgements
                of Debt

            
	 	 	 
	Annex 2	 	Employment
              Agreement

    

     

      EXHIBITS

       

    

    
      	Exhibit A	 	Financial Statements
	 	 	 
	Exhibit B	 	Real Property
	 	 	 
	Exhibit C	 	Machinery and Equipment
	 	 	 
	Exhibit D	 	Intellectual Property
	 	 	 
	Exhibit E	 	Stock and Inventories
	 	 	 
	Exhibit F	 	Receivables
	 	 	 
	Exhibit G	 	Insurance
	 	 	 
	Exhibit H	 	Disputes
	 	 	 
	Exhibit I	 	Contracts
	 	 	 
	Exhibit J	 	IMSA’s Commitments
	 	 	 
	Exhibit K	 	Environmental Matters
	 	 	 
	Exhibit L	 	Conduct of Business
	 	 	 
	Exhibit M	 	Disclosures
	 	 	 
	Exhibit N	 	Payment of Cash
	 	 	 
	Exhibit O	 	Customers
	 	 	 
	Exhibit P	 	Suppliers

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Acknowledgement
      of Debt

    

    Dated
      as
      of December 28, 2007

     

    The
      undersigned, MEAS Europe, a corporation existing under the laws of France,
      with
      its corporate seat at 105, avenue du Général Eisenhower, BP 1036, 31023
      Toulouse, Cédex (hereinafter referred to as “Debtor”, acknowledges that it shall
      pay to Mr. Manfred Knütel, Ch. Des Vignes-Perdues 15, CH-2022 Bevaix
      (Switzerland) (hereinafter referred to as “Payee”), or order, at the address set
      forth below for notices to Payee or at such other place as payee may from time
      to time designate, the principal sum of five million (5,000,000) CHF, together
      with accrued interest thereon.

    

    The
      entire principal balance of this Acknowledgement of Debt, together with all
      unpaid accrued interest thereon, shall be paid in 4 (four) annual installments
      of 1.25 (one point two five) million CHF on December 28, 2008, December 28,
      2009, December 28, 2010 and December 28, 2011, respectively. The unpaid
      principal balance of this Acknowledgement of Debt shall bear interest from
      the
      date hereof at a rate of interest equal to four point five percent (4.5%) per
      annum. Interest chargeable hereunder shall be calculated on the basis of a
      three
      hundred sixty-five (365) day year for actual days elapsed.

    

    Debtor
      may prepay all or part of the principal balance under this Acknowledgement
      of
      Debt, without premium or penalty provided, however, with each prepayment Debtor
      shall also pay the interest, if any, accrued on the principal amount being
      prepaid to the date of such prepayment.

    

    All
      payments hereunder are to be applied first to the payment of accrued interest,
      if any, and the balance remaining applied to the payment of principal. All
      principal and interest, if any, due hereunder is payable in lawful money of
      Switzerland.

    

    All
      amounts payable under this Acknowledgement of Debt may be made with set-off,
      deduction or counterclaim, as provided in Article 8.4 of the share purchase
      agreement dated as of the date of this Acknowledgement of Debt and entered
      into
      between and among the Debtor, the Payee and the other signatories thereto
      (hereinafter referred to as the “Share
      Purchase Agreement”).

    

    Payments
      under this Acknowledgement of Debt shall be made on account opened in the name
      of the Payee as follows:

    

    Beneficiary:
      Manfred Knütel, Bevaix 

    IBAN:
      CH3900290290404464.40R 

    Swift:
      UBSWCHZH80A 

    Bank
      name: UBS SA, Place Pury 5, CH-2001 Neuchâtel 

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    The
      Debtor agrees not to assign this Acknowledgement of Debt or any of our
      obligations hereunder without the prior written consent of the Payee. The Payee
      may at any time assign its rights and transfer its obligations under this
      Acknowledgement of Debt to any person, provided and to the extent that such
      person (the assign) acknowledges and agrees, and cause its possible assigns
      to
      acknowledge and agree, that the Debtor shall have the right to make any payment
      due hereunder with set-off, deduction or counterclaim of any claim that the
      Debtor might have against the Payee or its assigns including, but not limited
      to
      claims for breaches of the representations and warranties contained in the
      Share
      Purchase Agreement. Any assignment which would not comply this clause, is null
      and void.

     

    Payments
      by Debtor to Payee hereunder shall be suspended so long as a Default or Event
      of
      Default (as each such term is defined in the Credit Agreement referred to below)
      exists and is continuing under that certain Amended and Restated Credit
      Agreement, dated as of April 3, 2006, among General Electric Capital Corporation
      for itself, as a lender, and as agent for the lenders party thereto from time
      to
      time, Measurement Specialties, Inc., a New Jersey corporation, as borrower
      (“MSI”),
      and
      certain of MSI’s affiliates and subsidiaries (as the same now exists and may
      hereafter be amended, restated, supplemented or otherwise modified from time
      to
      time, the “Credit
      Agreement”).

    

    IF,
      FIVE
      (5) DAYS AFTER WRITTEN NOTICE OF THE SAME, MAKER SHALL CONTINUE IN ITS FAILURE
      TO PAY INTEREST AND PRINCIPAL AS PROVIDED HEREUNDER, THEN THE UNPAID PRINCIPAL
      BALANCE OF THIS NOTE, TOGETHER WITH INTEREST ACCRUED THEREON, SHALL THEREUPON
      BE
      IMMEDIATELY DUE AND PAYABLE AT THE OPTION OF THE PAYEE OR ITS PERMITTED ASSIGNS
      HEREOF..

    

    All
      notices or demands required or permitted hereunder shall be in writing and
      shall
      be deemed given when actually delivered or on the third business day following
      the day on which the same shall have been mailed by registered or certified
      mail, postage prepaid, addressed as follows:

    

    If
      to
      Debtor: 

    c/o
      Measurement Specialties, Inc.

    1000
      Lucas Way

    Hampton,
      VA 23666

    Attention:
      Frank Guidone, CEO

    Telecopier:
      +1 575-766-4347

    

    If
      to
      Payee: 

    Manfred
      Knütel

    Ch.
      Des
      Vignes-Perdues 15

    CH-2022
      Bevaix

    

    Telecopier:
      +41 32 847 9568

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    Either
      Debtor or Payee may change its respective address or addressee by giving notice
      of such change to the other party in the manner provided herein. For this
      purpose only, unless and until such written notice is actually received, the
      address and addressee specified for each party shall be deemed to continue
      in
      effect for all purposes.

    

    This
      Acknowledgement of Debt and all transactions hereunder and/or evidenced hereby
      shall be governed by, construed under and enforced in accordance with the
      substantive laws of Switzerland. Any dispute, controversy or claim arising
      out
      of, or in connection with, this note shall be finally settled under the Rules
      of
      Arbitration of the International Chamber of Commerce in force on the date when
      the Notice of Arbitration is submitted in accordance with these Rules. The
      number of arbitrators shall be three. The seat of arbitration shall be in Geneva
      (Switzerland). The Arbitration shall be conducted in English.

    

    No
      amendment, modification or supplement of any provision of this Acknowledgement
      of Debt shall be valid or effective unless made in writing and signed by a
      duly
      authorized officer of each Party or its permitted assigns.

    

    If
      any
      provision of this Acknowledgement of Debt, or the application thereof, shall,
      for any reason and to any extent, be held invalid, illegal or unenforceable,
      the
      remainder of this Acknowledgement of Debt shall be applied and interpreted
      so as
      to reasonably effect the intent of the Parties hereto. The Parties further
      agree
      to replace such void or unenforceable provision by provision which will achieve,
      to the extent possible, the economic, business and other purposes of the void
      and unenforceable provision. In any case the remainder of this Agreement shall
      remain in full
      force and effect and shall not be affected thereby.

    

    In
      witness whereof the undersigned has executed this Acknowledgement of Debt to
      be
      effective as of the date written above.

    
       

      
        
          
            	
                  	 	 	
                    
                      
                        Debtor:

                      

                    

                  
	 	 	 	 
	 	 	 	
                    
                      
                        MEAS
                          Europe

                      

                    

                  

          

        

        
           

          
            
              	 	 	
                    	By:
	
                    	 	 	
                      
                        

                      

                    
	 	 	
                    	Name:
	 	 	 	
                      
                        
 

                    
	 	 	
                    	Title:
	 	 	 	
                      
                        
 

                    

            

            
              
                 

                
                  
                    
                      	
                            	 	 	
                              
                                
                                  
                                    Payee:

                                  

                                

                              

                            
	 	 	 	 
	 	 	 	
                              
                                
                                  
                                    Mr.
                                      Manfred Knütel

                                  

                                

                              

                            
	 	 	 	
                               

                              
                                

                              

                            

                    

                  

                  
                     

                    
                      
                        
                        

                      

                      
                        20

                        
                          

                        

                      

                      
                        
                        

                      

                    

                  

                

              

            

          

        

      

    

    Acknowledgement
      of Debt

    

    Dated
      as
      of December 28, 2007

     

    The
      undersigned, MEAS Europe, a corporation existing under the laws of France,
      with
      its corporate seat at 105, avenue du Général Eisenhower, BP 1036, 31023
      Toulouse, Cédex (hereinafter referred to as “Debtor”, acknowledges that it shall
      pay to Mr. Hans-Peter Salvisberg, Schlossallee 9 ; CH 3280 Greng,
      (Switzerland) (hereinafter referred to as “Payee”), at the address set forth
      below for notices to Payee or at such other place as payee may from time to
      time
      designate, the principal sum of five million (5,000,000) CHF, together with
      accrued interest thereon.

    

    The
      entire principal balance of this Acknowledgement of Debt, together with all
      unpaid accrued interest thereon, shall be paid in 4 (four) annual installments
      of 1.25 (one point two five) million CHF on December 28, 2008, December 28,
      2009, December 28, 2010 and December 28, 2011, respectively. The unpaid
      principal balance of this Acknowledgement of Debt shall bear interest from
      the
      date hereof at a rate of interest equal to four point five percent (4.5%) per
      annum. Interest chargeable hereunder shall be calculated on the basis of a
      three
      hundred sixty-five (365) day year for actual days elapsed.

    

    Debtor
      may prepay all or part of the principal balance under this Acknowledgement
      of
      Debt, without premium or penalty provided, however, with each prepayment Debtor
      shall also pay the interest, if any, accrued on the principal amount being
      prepaid to the date of such prepayment.

    

    All
      payments hereunder are to be applied first to the payment of accrued interest,
      if any, and the balance remaining applied to the payment of principal. All
      principal and interest, if any, due hereunder is payable in lawful money of
      Switzerland.

    

    All
      amounts payable under this Acknowledgement of Debt may be made with set-off,
      deduction or counterclaim, as provided in Article 8.4 of the share purchase
      agreement dated as of the date of this Acknowledgement of Debt and entered
      into
      between and among the Debtor, the Payee and the other signatories thereto
      (hereinafter referred to as the “Share
      Purchase Agreement”).

    

    Payments
      under this Acknowledgement of Debt shall be made on account opened in the name
      of the Payee as follows:

    

    Beneficiary:
      Hans Peter Salvisberg, Greng

    IBAN:
      CH53 0844 0535 6133 0013 5

    Swift:
      COOPCHBB

    Bank
      name: Bank Coop, 35, Rue de Romont, 1700 Fribourg (Switzerland)

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

       

    

    The
      Debtor agrees not to assign this Acknowledgement of Debt or any of our
      obligations hereunder without the prior written consent of the Payee. The Payee
      may at any time assign its rights and transfer its obligations under this
      Acknowledgement of Debt to any person, provided and to the extent that such
      person (the assign) acknowledges and agrees, and cause its possible assigns
      to
      acknowledge and agree, that the Debtor shall have the right to make any payment
      due hereunder with set-off, deduction or counterclaim of any claim that the
      Debtor might have against the Payee or its assigns including, but not limited
      to
      claims for breaches of the representations and warranties contained in the
      Share
      Purchase Agreement. Any assignment which would not comply this clause, is null
      and void.

     

    Payments
      by Debtor to Payee hereunder shall be suspended so long as a Default or Event
      of
      Default (as each such term is defined in the Credit Agreement referred to below)
      exists and is continuing under that certain Amended and Restated Credit
      Agreement, dated as of April 3, 2006, among General Electric Capital Corporation
      for itself, as a lender, and as agent for the lenders party thereto from time
      to
      time, Measurement Specialties, Inc., a New Jersey corporation, as borrower
      (“MSI”),
      and
      certain of MSI’s affiliates and subsidiaries (as the same now exists and may
      hereafter be amended, restated, supplemented or otherwise modified from time
      to
      time, the “Credit
      Agreement”).

    

    IF,
      FIVE
      (5) DAYS AFTER WRITTEN NOTICE OF THE SAME, MAKER SHALL CONTINUE IN ITS FAILURE
      TO PAY INTEREST AND PRINCIPAL AS PROVIDED HEREUNDER, THEN THE UNPAID PRINCIPAL
      BALANCE OF THIS NOTE, TOGETHER WITH INTEREST ACCRUED THEREON, SHALL THEREUPON
      BE
      IMMEDIATELY DUE AND PAYABLE AT THE OPTION OF THE PAYEE OR ITS PERMITTED ASSIGNS
      HEREOF..

    

    All
      notices or demands required or permitted hereunder shall be in writing and
      shall
      be deemed given when actually delivered or on the third business day following
      the day on which the same shall have been mailed by registered or certified
      mail, postage prepaid, addressed as follows:

    

    If
      to
      Debtor: 

    c/o
      Measurement Specialties, Inc.

    1000
      Lucas Way

    Hampton,
      VA 23666

    Attention:
      Frank Guidone, CEO

    Telecopier:
      +1 575-766-4347

    

    If
      to
      Payee: 

    Hans-Peter
      Salvisberg

    Schlossallee
      9

    CH
      3280
      Greng

    

    Telecopier:
      +41 32 847 9568

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

       

    

    Either
      Debtor or Payee may change its respective address or addressee by giving notice
      of such change to the other party in the manner provided herein. For this
      purpose only, unless and until such written notice is actually received, the
      address and addressee specified for each party shall be deemed to continue
      in
      effect for all purposes.

    

    This
      Acknowledgement of Debt and all transactions hereunder and/or evidenced hereby
      shall be governed by, construed under and enforced in accordance with the
      substantive laws of Switzerland. Any dispute, controversy or claim arising
      out
      of, or in connection with, this note shall be finally settled under the Rules
      of
      Arbitration of the International Chamber of Commerce in force on the date when
      the Notice of Arbitration is submitted in accordance with these Rules. The
      number of arbitrators shall be three. The seat of arbitration shall be in Geneva
      (Switzerland). The Arbitration shall be conducted in English.

    

    No
      amendment, modification or supplement of any provision of this Acknowledgement
      of Debt shall be valid or effective unless made in writing and signed by a
      duly
      authorized officer of each Party or its permitted assigns.

    

    If
      any
      provision of this Acknowledgement of Debt, or the application thereof, shall,
      for any reason and to any extent, be held invalid, illegal or unenforceable,
      the
      remainder of this Acknowledgement of Debt shall be applied and interpreted
      so as
      to reasonably effect the intent of the Parties hereto. The Parties further
      agree
      to replace such void or unenforceable provision by provision which will achieve,
      to the extent possible, the economic, business and other purposes of the void
      and unenforceable provision. In any case the remainder of this Agreement shall
      remain in full
      force and effect and shall not be affected thereby.

    

    In
      witness whereof the undersigned has executed this Acknowledgement of Debt to
      be
      effective as of the date written above.

    
       

      
        
          
            	
                  	 	 	
                    
                      
                        Debtor:

                      

                    

                  
	 	 	 	 
	 	 	 	
                    
                      
                        MEAS
                          Europe

                      

                    

                  

          

        

        
           

          
            
              	 	 	
                    	By:
	
                    	 	 	
                      
                        

                      

                    
	 	 	
                    	Name:
	 	 	 	
                      
                        
 

                    
	 	 	
                    	Title:
	 	 	 	
                      
                        
 

                    

            

            
              
                 

                
                  
                    
                      	
                            	 	 	
                              
                                
                                  
                                    Payee:

                                  

                                

                              

                            
	 	 	 	 
	 	 	 	
                              
                                
                                  
                                    
                                      Mr.
                                        Hans-Peter Salvisberg 

                                    

                                  

                                

                              

                            
	 	 	 	
                               

                              
                                
 

                            

                    

                  

                  
                     

                    
                      
                        
                        

                      

                      
                        23

                        
                          

                        

                      

                      
                        
                        

                      

                    

                  

                

              

            

          

        

      

    

    Execution
      Version

     

    INTERSEMA
      SENSORIC SA

     

    EMPLOYMENT
      AGREEMENT

    
       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    

    EMPLOYMENT
      AGREEMENT

     

    between

     

    
      	INTERSEMA SENSORIC
              SA	Employer
	
              Chemin
                Chapons-des-Prés 11

            	 
	
              Bevaix,
                Neuchâtel

              
                Switzerland

              

            	 

    

     

    and

    
       

      
        	Mr. Manfred Knütel	Employee
	
                Ch.
                  Des Vignes-Perdues 15, CH-2022 Bevaix (Switzerland)

              	 

      

    

    

    The
      Employer and the Employee are also referred to as “Party”
or
      “Parties”.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    

      
        	
                I.

              	
                Beginning
                  of Employment

              	
                25

              
	
                II.

              	
                Position

              	
                25

              
	
                A.

              	
                Function

              	
                25

              
	
                B.

              	
                Duties
                  and Responsibilities

              	
                25

              
	
                III.

              	
                Place
                  of Work

              	
                25

              
	
                IV.

              	
                Compensation

              	
                25

              
	
                A.

              	
                Base
                  Salary

              	
                25

              
	
                B.

              	
                Bonus

              	
                25

              
	
                C.

              	
                Acknowledgements
                  of the Employee

              	
                25

              
	
                a)

              	
                Nature
                  of Additional Payments

              	
                25

              
	
                b)

              	
                Conditionality

              	
                25

              
	
                D.

              	
                No
                  other Compensation

              	
                25

              
	
                E.

              	
                Deductions

              	
                25

              
	
                V.

              	
                Expenses

              	
                25

              
	
                VI.

              	
                Company
                  Car

              	
                25

              
	
                VII.

              	
                TERM
                  and Termination

              	
                25

              
	
                A.

              	
                Term

              	
                25

              
	
                B.

              	
                Termination
                  for Valid Reasons

              	
                25

              
	
                VIII.

              	
                Working
                  Time

              	
                25

              
	
                IX.

              	
                Vacation

              	
                25

              
	
                X.

              	
                Holidays
                  and Compelling Absence

              	
                25

              
	
                A.

              	
                Holidays

              	
                25

              
	
                B.

              	
                Compelling
                  Absences

              	
                25

              
	
                XI.

              	
                Illness,
                  Accident and Death

              	
                25

              
	
                A.

              	
                Medical
                  Certificate

              	
                25

              
	
                B.

              	
                Daily
                  Allowance Insurance

              	
                25

              
	
                C.

              	
                Occupational
                  and Non-occupational Accidents

              	
                25

              
	
                XII.

              	
                Intellectual
                  Property Rights

              	
                25

              
	
                XIII.

              	
                Data
                  Protection and Privacy

              	
                25

              
	
                XIV.

              	
                Non-Competition
                  and Non-Solicitation

              	
                25

              
	
                XV.

              	
                Confidentiality

              	
                25

              
	
                XVI.

              	
                Miscelleanous

              	
                25

              
	
                A.

              	
                Entire
                  Agreement

              	
                25

              
	
                B.

              	
                Severability

              	
                25

              
	
                C.

              	
                Amendments

              	
                25

              
	
                D.

              	
                Governing
                  Law and Jurisdiction

              	
                25

              
	
                E.

              	
                Execution

              	
                25

              
	
                F.

              	
                Waiver

              	
                25

              
	
                G.

              	
                Survival

              	
                25

              

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

    

     

    EMPLOYMENT
      AGREEMENT

     

    Article
      10: BEGINNING
      OF EMPLOYMENT

     

    The
      employment of the Employee (the “Employment”)
      starts
      on 28
      December 2007
      (the
“Commencement
      Date”).

     

    Article
      11: POSITION

     

    
      	
              11.1

            	
              Function

            

    

     

    The
      Employee shall assume the function as General
      Manager of Operations and Research and Development.

     

    
      	
              11.2

            	
              Duties
                and Responsibilities

            

    

     

    It
      is
      understood that the duties and responsibilities arising out of the above
      function includes all tasks customarily or reasonably incidental to such
      function and those expressly mentioned in this Employment
      Agreement.

     

    Upon
      consultation with the Employee, the Employer may assign to the Employee any
      additional or new duties or responsibilities as deemed reasonable or appropriate
      by the Employer in the course and fulfilment of its business.

     

    The
      Employee shall carefully perform all work assigned to the Employee, and loyally
      safeguard the Employer’s legitimate interests.

     

    The
      Employee is not entitled to work for any third party or to engage in any gainful
      employment without the written approval of the Employer. 

     

    Article
      12: PLACE
      OF
      WORK

     

    The
      Employee’s principal place of work shall presently be in Bevaix, Neuchâtel
      (Switzerland) at the main office of the Employer. The Employer may request
      the
      Employee to travel in the course of the Employment in order to perform his
      obligations and duties under the Employment Agreement, but such travel shall
      be
      limited and reasonably agreed among the Employer and the Employee in
      advance.

     

    Article
      13: COMPENSATION

     

    
      	
              13.1

            	
              Base
                Salary

            

    

     

    The
      Employee shall receive an annual base salary of CHF 185,000 gross (the
“Base
      Salary”),
      payable in twelve monthly instalments at the end of the month, plus any
      mandatory contributions for family and children allowances.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
              13.2

            	
              Bonus

            

    

     

    The
      Employee shall be entitled to a discretionary bonus payment of up to twenty
      percent (20%) of the Base Salary (the “Bonus”)
      in
      accordance with the Employer’s bonus plan (the “Bonus
      Plan”)
      as
      amended from time to time by the Employer. The goals for the Bonus shall be
      established and mutually agreed to by the Employer and the Employee at the
      beginning of each fiscal year.

     

    
      	
              13.3

            	
              Acknowledgements
                of the Employee

            

    

     

    
      	
              (a)

            	
              Nature
                of Additional
                Payments

            

    

     

    The
      Employee acknowledges and agrees that any entitlements granted and payments
      made
      in addition to the Base Salary, including, but not limited to any bonuses,
      participations, or gratuities of the Employer or another group company (the
      “Additional
      Payments”)
      are
      not part of the salary legally or contractually owed by the Employer and are
      made at full discretion of the Employer or the company granting such bonus,
      participation or gratuity, respectively. Any Additional Payments shall not
      create any obligation of the Employer or other group company to make such
      Additional Payments in future and shall not create any right or entitlement
      of
      the Employee to such Additional Payments in future even if paid over consecutive
      years and without express reservation.

     

    
      	
              (b)

            	
              Conditionality

            

    

     

    Any
      Additional Payments, if any, are subject to the condition that no notice of
      termination has been given under this Employment Agreement by the later of
      the
      end of the respective calendar year. In case of a termination of the Employment
      Agreement by the Employer, this condition is deemed to be fulfilled except
      where
      the termination was made by the Employer for
      cause
      (not limited to valid reasons entitling the Employer to a termination without
      notice pursuant to article 337 Swiss Code of Obligations). Further conditions
      may be defined in the respective documents governing such Additional
      Payments.

     

    
      	
              13.4

            	
              No
                other Compensation

            

    

     

    The
      Employee acknowledges and agrees that he shall not be entitled to receive any
      other compensation or benefit of any nature from the Employer except as
      expressly provided for in this Employment Agreement.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

       

    

    
      	
              13.5

            	
              Deductions

            

    

     

    From
      the
      salary (as defined by the applicable laws and regulations, which may include
      bonuses, allowances, participations and other benefits in addition to the Base
      Salary) any portions of Employee’s social security contributions (AHV (Old-age
      and surviving dependents insurance)/IV (Disability insurance)/EO (Wage
      compensation), ALV (Unemployment insurance), UV (Accidence insurance), premiums
      to pension schemes (cp. Regulations of the pension fund) and withholding taxes,
      if any, will be deducted and withheld by the Employer from the payments made
      to
      the Employee.

     

    Article
      14: EXPENSES

     

    The
      Employee shall be entitled to reimbursement by the Employer of out-of-pocket
      business expenses (including mobile phone expenses) reasonably incurred by
      the
      Employee during the Employment in the performance of the Employee’s duties under
      this Employment Agreement, including expenses which may be charged to a company
      credit card, subject to (i) the submission of relevant vouchers and receipts
      and
      (ii) the compliance with the reimbursement policies of the Employer possibly
      established and amended from time to time. The Employee shall further be
      entitled to reimbursement by the Employer of out-of-pocket business expenses
      by
      the Employee during the Employment in the performance of the Employee’s duties
      under this Employment Agreement, absent submission of relevant vouchers and
      receipts, at a fixed rate of CHF 15,000 per year.

     

    Article
      15: COMPANY
      CAR

     

    Throughout
      the course of this Employment the Employee shall be entitled to use the existing
      company car (BMW X5) free of charge. The Employee is entitled to use the car
      for
      private or business purposes. The Employee shall be reimbursed for petrol
      expenses for business as well as for private journeys. However, the
      reimbursement is subject to the submission of relevant vouchers and receipts.
      The conclusion and the expenses for the comprehensive cover insurance, the
      motor
      vehicle tax, maintenance, tires, vignette will be paid by the
      Employer.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    Article
      16: TERM
      AND
      TERMINATION

     

    
      	
              16.1

            	
              Term

            

    

     

    The
      Employment shall be of a definite time (the “Employment
      Period”)
      commencing on the Commencement Date and ending on the date that is two (2)
      years
      after the Commencement Date.

     

    
      	
              16.2

            	
              Termination
                for Valid Reasons

            

    

     

    The
      Employment Agreement may be terminated by either Party for valid reasons
      pursuant to Article 337 of the Swiss Code of Obligations at any time.

     

    Article
      17: WORKING
      TIME

     

    The
      weekly working hours for the Employee are at least 40 hours per week.

     

    The
      Employee shall work extra hours and overtime, if required and to the extent
      such
      work can reasonably be expected in good faith. 

     

    The
      Base
      Salary as defined in Section 13.1
      hereunder includes any and all remuneration for such overtime, and the Employee
      shall have no entitlement to additional compensation for such overtime, whether
      in cash nor in kind.

     

    Article
      18: VACATION

     

    The
      Employee is entitled to twenty-five (25) business days of vacation per calendar
      year.

     

    The
      Employer has the right to determine when the Employee shall take vacation.
      However, the Employer shall take the Employees requests in due consideration.
      If
      the Employee requests to take vacation he shall reasonably prior to the intended
      vacation inform the responsible executive. In any event the Employee shall
      provide for suitable internal representation and he shall care for the ongoing
      service of important affairs during his vacation.

     

    The
      vacation entitlement is based on one complete calendar year. For the year in
      which the Employment relationship begins or ends, the vacation entitlement
      is
      calculated pro
      rata temporis.
      The
      Employee shall not be entitled to retain unused vacation days in excess of
      an
      aggregate of (25) business days of vacation. 

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Article
      19: HOLIDAYS
      AND COMPELLING ABSENCE

     

    
      	
              19.1

            	
              Holidays

            

    

     

    On
      federal and cantonal Holidays the Employee is not obliged to work.

     

    
      	
              19.2

            	
              Compelling
                Absences

            

    

     

    To
      the
      extent necessary or required, Employees are eligible to take time off for
      compelling reasons (as specified below).

     

    Compelling
      Absences include, but are not limited to, the following events for which the
      time off as set forth below apply (stated in business days):

     

    
      	 	
              ·

            	
              Marriage
                of Employee:             
                

            	
              2
                days

            
	 	 	 	 
	 	
              ·

            	
              Attendance
                of wedding of a family member
                or close relative:

            	
              1
                day

            
	 	 	 	 
	 	
              ·

            	
              Birth
                of Employee’s child:

            	
              2
                days

            
	 	 	 	 
	 	
              ·

            	
              Death
                or illness of:

            	 

    

     

    
      
        	 	
                ·

              	close family member or person living
                in the same household:	3 days 
	 	 	 	 
	 	
                ·

              	other family member:	2 day
	 	 	 	 
	 	
                ·

              	close relative or friend:	1 day

      

    

    
       

      
        	 	
                ·

              	
                
                  Moving:

                

              	
                
                  1
                    day

                

              
	 	 	 	 
	 	
                ·

              	
                
                  Medical
                    or dental care:

                

              	
                
                  as
                    required

                

              
	 	 	 	 
	 	
                ·

              	
                
                  
                    Public
                      duties:

                  

                

              	
                
                  as
                    required

                

              

      

    

     

    Compelling
      Absences do not constitute a ground for a deduction of the Employees’
entitlements to the Base Salary or vacation, unless the absence exceeds the
      time
      period as set forth above. 

     

    Article
      20: ILLNESS,
      ACCIDENT AND DEATH

     

    
      	
              20.1

            	
              Medical
                Certificate

            

    

     

    If
      the
      Employee’s absence exceeds five business days, the Employee shall, as soon as
      practicable furnish a medical certificate. However, the Employer reserves the
      right to demand for a medical certificate in case of any absence, irrespective
      of the length of the absence. The Employer is entitled to ask the Employee
      to
      consult a medical examiner at the Employer’s expense.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      	
              20.2

            	
              Daily
                Allowance Insurance

            

    

     

    If
      an
      Employee is prevented from performing the Employee’s duties arising out of or
      relating to the Employment due to illness (not deliberately self-inflicted
      by
      the Employee) or due to an accident (not deliberately self-inflicted by the
      Employee), then the Employer will continue to pay the base salary pursuant
      to
      the collective daily allowance insurance (Taggeldversicherung) of the Employer,
      provided that the conditions of the collective daily allowance insurance are
      being met and that the Employee complies with the conditions of the collective
      daily allowance insurance and with the directives of the Employer. In principle,
      the daily allowance insurance provides for the following coverage:

     

    90%
      of
      the Base Salary during up to 730 days after a waiting period of 30
      days.

     

    During
      the waiting period of 30 days 100% of the Base Salary according to Section
      13.1
      is paid
      to the Employee.

     

    The
      insurance premium for the daily allowance insurance is paid one half each by
      the
      Employer and the Employee.

     

    
      	
              20.3

            	
              Occupational
                and Non-occupational Accidents

            

    

     

    During
      the Employment the Employee is insured for occupational and non-occupational
      accidents. Premiums for occupational accident insurance and occupational
      sickness insurance are paid by the Employer. Premiums for non-occupational
      accident insurance are paid by the Employee.

     

    90%
      of
      the Base Salary is paid after a waiting period of 30 days.

     

    During
      the waiting period of 30 days 100% of the Base Salary according to Section
      13.1
      is paid
      to the Employee.

     

    Article
      21: INTELLECTUAL
      PROPERTY RIGHTS 

     

    The
      Employer is entitled to all work results and all intellectual property created
      by the Employee in the course of or in connection with the employment
      (notwithstanding whether in pursuance or fulfilment of a contractual duty or
      not, whether individually or with the assistance of any other individual or
      entity), and all such work results, intellectual property and related rights
      vest irrevocably in the Employer. This transfer and assignment of work results,
      intellectual property and related rights is worldwide, unlimited in time,
      unrestricted in scope and encompasses all rights and exploitations, whether
      currently known or arising in the future. To the extent certain jurisdictions
      do
      not provide for the assignability of work results or intellectual property
      and
      related rights, the Employee grants to the Employer a worldwide, irrevocable,
      exclusive, transferable and sublicensable, royalty-free, unlimited and
      unrestricted license to use, modify, develop and exploit such work results,
      intellectual property and related rights, including the right to sub-license,
      is
      hereby granted by the Employee to the Employer. Compensation for the transfer
      of
      these Intellectual Property Rights or their licensing, respectively, is included
      in the Base Salary according to Section 13.1.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    To
      the
      extent permitted by law, the Employee agrees no to put forward any claim
      regarding possible moral rights in connection with any work under this section.
      The Employee acknowledges that the Base Salary includes reasonable compensation
      for the fact that the inventions and intellectual property rights referred
      to
      above will vest in the Employer by operation of law or transfer by the Employee
      of such rights.

     

    The
      Employee will, upon first demand of the Employer, execute any documents,
      declarations, deeds of assignment or similar as may be requested by the Employer
      for evidence or perfection of the above transfer and assignment.

     

    Article
      22: DATA
      PROTECTION AND PRIVACY

     

    The
      Employer will comply with the Swiss Data Protection Act. The Employer will
      only
      collect personal data of the Employee insofar as necessary for the execution
      and
      performance of the Employment and the obligations resulting therefrom or if
      required to do so by law.

     

    The
      Employee herewith agrees that personal data may be transferred to affiliated
      companies of the Employer and further third parties within and outside of
      Switzerland if such transfer is required in connection with the Employment,
      the
      execution of the Employment Agreement, the performance of any obligations
      resulting from the Employment, the work organization of the Employer or
      otherwise required by Swiss law or the laws of any other relevant jurisdiction.
      The Employer shall ensure that personal data will be secured against
      unauthorized access if a transfer is contemplated. The Employee has the right
      to
      withdraw his consent at any time.

     

    Article
      23: NON-COMPETITION
      AND NON-SOLICITATION

     

    The
      Employee agrees that during the Employment Period and for a period of two years
      after termination of the Employment Period (the “Restricted
      Period”)
      he
      will not directly, indirectly, once, occasionally or professionally, under
      his
      name or under a third party name, on behalf of his own or on behalf of third
      parties compete with the Employer within the scope of its business. The Employee
      furthermore agrees that he will not participate in any way in any enterprise
      competing with the Employer, and he also agrees not to found or assist any
      business being active in the same line of business as the Employer. This
      non-compete undertaking shall be effective for the whole territory of the
      business activities of the Employer and each of its group companies during
      the
      Employment and at the moment of termination of the Employment.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    During
      Restricted Period the Employee shall abstain from, directly or indirectly via
      any company owned or controlled by the Employee, enticing away, soliciting
      or
      interfering with (i) any personnel from the Employer or (ii) any person who
      is
      or was a client of the Employer.

     

    In
      the
      event the Employee breaches any of the obligations pursuant to this Section
      Article 23:
      a
      penalty of CHF 30,000 shall be owed by the Employee to the Employer for any
      such
      breach. However, the payment of the penalty does not release the Employee from
      further complying with the respective obligation. In addition, the Employer
      reserves the right to claim compensation for damages as well as the right to
      the
      remedy of specific performance.

     

    Article
      24: CONFIDENTIALITY

     

    The
      Employee will have access to confidential and proprietary information relating
      to the business and operations of the Employer and their clients. Such
      confidential and proprietary information constitutes a unique and valuable
      asset
      of the Employer and their acquisition required great time and expense. The
      disclosure or any other use of such confidential or proprietary information,
      other than for the sole benefit of the Employer, would be wrongful and would
      cause irreparable harm to the Employer or other group companies.

     

    The
      Employee is under a strict duty to keep all confidential and proprietary
      information strictly and permanently confidential and, accordingly, shall not
      during the Employment or after termination of the Employment directly or
      indirectly use for any purpose other than for the sole benefit of the Employer,
      or disclose or permit to be disclosed to any third person or entity, any
      confidential or proprietary information without first obtaining the written
      consent of the responsible executive and the party concerned, if applicable,
      except if required to do so by law. 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

       

    

    The
      Employee may not make any statement to the media related to confidential
      information, as far as he is not authorized to do so by the responsible
      executive.

     

    Upon
      termination of this Employment Agreement for any reason, the Employee shall
      return to the Employer all files and any company documents concerning the
      business of the Employer in his possession or open to his access, including
      all
      designs, customer and price lists, printed material, documents, sketches, notes,
      drafts as well as copies thereof, regardless whether or not the same are
      originally furnished by the Employer.

     

    The
      Employer reserves the right to the remedy of specific performance of the
      Employee’s obligations in addition to any damages.

     

    Article
      25: MISCELLEANOUS

     

    
      	
              25.1

            	
              Entire
                Agreement

            

    

     

    This
      Employment Agreement constitutes the complete Employment Agreement between
      the
      Parties regarding its subject matter and supersedes all prior oral and/or
      written agreements, representations and/or communications, concerning the
      subject matter hereof.

     

    
      	
              25.2

            	
              Severability

            

    

     

    If
      any
      provision of this Employment Agreement is held to be unenforceable for any
      reason, it shall be adjusted rather than voided, if possible, in order to
      achieve the intent of the Parties to this Employment Agreement to the fullest
      extent possible. In any event, all other provisions of this Employment Agreement
      shall remain valid and enforceable to the fullest extent possible.

     

    
      	
              25.3

            	
              Amendments

            

    

     

    Any
      amendments or supplementation of this Employment Agreement shall require written
      form. The written form may be dispensed only in writing.

     

    
      	
              25.4

            	
              Governing
                Law
                and Jurisdiction

            

    

     

    This
      Employment Agreement shall be construed in accordance with and governed by
      Swiss
      law (without giving effect to the principles of conflicts of law).

     

    Any
      dispute, controversy or claim arising out of or in connection with this
      Employment Agreement, including the validity, invalidity, breach or termination
      thereof, and including tort claims, shall be exclusively submitted to and
      determined by the courts of Neuchâtel, Switzerland, without prejudice to a
      possible appeal to the Swiss Federal Tribunal.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	
              25.5

            	
              Execution

            

    

     

    The
      Parties have duly executed this Agreement in two originals.

     

    
      	
              25.6

            	
              Waiver

            

    

     

    The
      waiver by either Party of any breach of this Agreement by the other Party shall
      not be effective unless in writing, and no such waiver shall operate or be
      construed as the waiver of the same or another breach on a subsequent
      occasion.

     

    
      	
              25.7

            	
              Survival

            

    

     

    Sections
      XII through XV, inclusive, shall survive and continue in full force in
      accordance with their terms notwithstanding the expiration or termination of
      this Agreement or the Employment Period.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    Signatures

    

    Intersema
      Sensoric SA (Employer)

     

    
      	 	 	 	 
	
            	 	 	
            
	
              
Place,
              date	 	 	
              
[name]
	
            	 	 	[title]

       

      
        	 	 	 	 
	
              	 	 	
              
	
                
Place,
                date	 	 	
                
[name]
	
              	 	 	[title]

      

       

    

    Mr.
      Manfred Knütel (Employee)

    
       

      
        	 	 	 	 
	
              	 	 	
              
	
                
Place,
                date	 	 	
                
Mr.
                Manfred
                Knütel

      

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

    

    Execution
      Version

     

    INTERSEMA
      SENSORIC SA

     

    EMPLOYMENT
      AGREEMENT

    
       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

    

    EMPLOYMENT
      AGREEMENT

     

    between

    
       

      
        	INTERSEMA SENSORIC
                SA	Employer
	
                Chemin
                  Chapons-des-Prés 11

              	 
	
                Bevaix,
                  Neuchâtel

                
                  Switzerland

                

              	 

      

    

     

    and

    
       

      
        	Mr. Hans-Peter
                Salvisberg	Employee
	
                Schlossallee
                  9 ; CH 3280 Greng (Switzerland)

              	 

      

       

    

    The
      Employer and the Employee are also referred to as “Party”
or
      “Parties”.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    TABLE
      OF
      CONTENTS

    

      
        	
                I.

              	
                Beginning
                  of Employment

              	
                27

              
	
                II.

              	
                Position

              	
                
                  27

                

              
	
                A.

              	
                Function

              	
                
                  27

                

              
	
                B.

              	
                Duties
                  and Responsibilities

              	
                
                  27

                

              
	
                III.

              	
                Place
                  of Work

              	
                
                  27

                

              
	
                IV.

              	
                Compensation

              	
                
                  27

                

              
	
                A.

              	
                Base
                  Salary

              	
                
                  27

                

              
	
                B.

              	
                Bonus

              	
                
                  28

                

              
	
                C.

              	
                Acknowledgements
                  of the Employee

              	
                
                  28

                

              
	
                a)

              	
                Nature
                  of Additional Payments

              	
                
                  28

                

              
	
                b)

              	
                Conditionality

              	
                
                  28

                

              
	
                D.

              	
                No
                  other Compensation

              	
                
                  28

                

              
	
                E.

              	
                Deductions

              	
                
                  29

                

              
	
                V.

              	
                Expenses

              	
                
                  29

                

              
	
                VI.

              	
                Company
                  Car

              	
                
                  29

                

              
	
                VII.

              	
                TERM
                  and Termination

              	
                30

              
	
                A.

              	
                Term

              	
                
                  30

                

              
	
                B.

              	
                Termination
                  for Valid Reasons

              	
                
                  30

                

              
	
                VIII.

              	
                Working
                  Time

              	
                
                  30

                

              
	
                IX.

              	
                Vacation

              	
                
                  30

                

              
	
                X.

              	
                Holidays
                  and Compelling Absence

              	
                
                  31

                

              
	
                A.

              	
                Holidays

              	
                
                  31

                

              
	
                B.

              	
                Compelling
                  Absences

              	
                
                  31

                

              
	
                XI.

              	
                Illness,
                  Accident and Death

              	
                
                  31

                

              
	
                A.

              	
                Medical
                  Certificate

              	
                
                  31

                

              
	
                B.

              	
                Daily
                  Allowance Insurance

              	
                
                  32

                

              
	
                C.

              	
                Occupational
                  and Non-occupational Accidents

              	
                
                  32

                

              
	
                XII.

              	
                Intellectual
                  Property Rights

              	
                
                  32

                

              
	
                XIII.

              	
                Data
                  Protection and Privacy

              	
                
                  33

                

              
	
                XIV.

              	
                Non-Competition
                  and Non-Solicitation

              	
                
                  33

                

              
	
                XV.

              	
                Confidentiality

              	
                
                  
                    34

                  

                

              
	
                XVI.

              	
                Miscelleanous

              	
                
                  35

                

              
	
                A.

              	
                Entire
                  Agreement

              	
                
                  35

                

              
	
                B.

              	
                Severability

              	
                
                  35

                

              
	
                C.

              	
                Amendments

              	
                
                  35

                

              
	
                D.

              	
                Governing
                  Law and Jurisdiction

              	
                
                  35

                

              
	
                E.

              	
                Execution

              	
                
                  36

                

              
	
                F.

              	
                Waiver

              	
                
                  36

                

              
	
                G.

              	
                Survival

              	
                
                  36

                

              

      

    

    

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    

    EMPLOYMENT
      AGREEMENT

     

    Article
      26: BEGINNING
      OF EMPLOYMENT

     

    The
      employment of the Employee (the “Employment”)
      starts
      on 28
      December 2007
      (the
“Commencement
      Date”).

     

    Article
      27: POSITION

     

    
      	
              27.1

            	
              Function

            

    

     

    The
      Employee shall assume the function as General
      Manager Administration.

     

    
      	
              27.2

            	
              Duties
                and Responsibilities

            

    

     

    It
      is
      understood that the duties and responsibilities arising out of the above
      function includes all tasks customarily or reasonably incidental to such
      function and those expressly mentioned in this Employment
      Agreement.

     

    Upon
      consultation with the Employee, the Employer may assign to the Employee any
      additional or new duties or responsibilities as deemed reasonable or appropriate
      by the Employer in the course and fulfilment of its business.

     

    The
      Employee shall carefully perform all work assigned to the Employee, and loyally
      safeguard the Employer’s legitimate interests.

     

    The
      Employee is not entitled to work for any third party or to engage in any gainful
      employment without the written approval of the Employer. 

     

    Article
      28: PLACE
      OF
      WORK

     

    The
      Employee’s principal place of work shall presently be in Bevaix, Neuchâtel
      (Switzerland) at the main office of the Employer. The Employer may request
      the
      Employee to travel in the course of the Employment in order to perform his
      obligations and duties under the Employment Agreement, but such travel shall
      be
      limited and reasonably agreed among the Employer and the Employee in
      advance.

     

    Article
      29: COMPENSATION

     

    
      	
              29.1

            	
              Base
                Salary

            

    

     

    The
      Employee shall receive an annual base salary of CHF 185,000 gross (the
“Base
      Salary”),
      payable in twelve monthly instalments at the end of the month, plus any
      mandatory contributions for family and children allowances.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
              29.2

            	
              Bonus

            

    

     

    The
      Employee shall be entitled to a discretionary bonus payment of up to twenty
      percent (20%) of the Base Salary (the “Bonus”)
      in
      accordance with the Employer’s bonus plan (the “Bonus
      Plan”)
      as
      amended from time to time by the Employer. The goals for the Bonus shall be
      established and mutually agreed to by the Employer and the Employee at the
      beginning of each fiscal year.

     

    
      	
              29.3

            	
              Acknowledgements
                of the Employee

            

    

     

    
      	
              (a)

            	
              Nature
                of Additional Payments

            

    

     

    The
      Employee acknowledges and agrees that any entitlements granted and payments
      made
      in addition to the Base Salary, including, but not limited to any bonuses,
      participations, or gratuities of the Employer or another group company (the
      “Additional
      Payments”)
      are
      not part of the salary legally or contractually owed by the Employer and are
      made at full discretion of the Employer or the company granting such bonus,
      participation or gratuity, respectively. Any Additional Payments shall not
      create any obligation of the Employer or other group company to make such
      Additional Payments in future and shall not create any right or entitlement
      of
      the Employee to such Additional Payments in future even if paid over consecutive
      years and without express reservation.

     

    
      	
              (b)

            	
              Conditionality

            

    

     

    Any
      Additional Payments, if any, are subject to the condition that no notice of
      termination has been given under this Employment Agreement by the later of
      the
      end of the respective calendar year. In case of a termination of the Employment
      Agreement by the Employer, this condition is deemed to be fulfilled except
      where
      the termination was made by the Employer for
      cause
      (not limited to valid reasons entitling the Employer to a termination without
      notice pursuant to article 337 Swiss Code of Obligations). Further conditions
      may be defined in the respective documents governing such Additional
      Payments.

     

    
      	
              29.4

            	
              No
                other Compensation

            

    

     

    The
      Employee acknowledges and agrees that he shall not be entitled to receive any
      other compensation or benefit of any nature from the Employer except as
      expressly provided for in this Employment Agreement.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
              29.5

            	
              Deductions

            

    

     

    From
      the
      salary (as defined by the applicable laws and regulations, which may include
      bonuses, allowances, participations and other benefits in addition to the Base
      Salary) any portions of Employee’s social security contributions (AHV (Old-age
      and surviving dependents insurance)/IV (Disability insurance)/EO (Wage
      compensation), ALV (Unemployment insurance), UV (Accidence insurance), premiums
      to pension schemes (cp. Regulations of the pension fund) and withholding taxes,
      if any, will be deducted and withheld by the Employer from the payments made
      to
      the Employee.

     

    Article
      30: EXPENSES

     

    The
      Employee shall be entitled to reimbursement by the Employer of out-of-pocket
      business expenses (including mobile phone expenses) reasonably incurred by
      the
      Employee during the Employment in the performance of the Employee’s duties under
      this Employment Agreement, including expenses which may be charged to a company
      credit card, subject to (i) the submission of relevant vouchers and receipts
      and
      (ii) the compliance with the reimbursement policies of the Employer possibly
      established and amended from time to time. The Employee shall further be
      entitled to reimbursement by the Employer of out-of-pocket business expenses
      by
      the Employee during the Employment in the performance of the Employee’s duties
      under this Employment Agreement, absent submission of relevant vouchers and
      receipts, at a fixed rate of CHF 15,000 per year.

     

    Article
      31: COMPANY
      CAR

     

    Throughout
      the course of this Employment the Employee shall be entitled to use the existing
      company car (Jaguar XJ8) free of charge. The Employee is entitled to use the
      car
      for private or business purposes. The Employee shall be reimbursed for petrol
      expenses for business as well as for private journeys. However, the
      reimbursement is subject to the submission of relevant vouchers and receipts.
      The conclusion and the expenses for the comprehensive cover insurance, the
      motor
      vehicle tax, maintenance, tires, vignette will be paid by the
      Employer.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    Article
      32: TERM
      AND
      TERMINATION

     

    
      	
              32.1

            	
              Term

            

    

     

    The
      Employment shall be of a definite time (the “Employment
      Period”)
      commencing on the Commencement Date and ending on the date that is two (2)
      years
      after the Commencement Date.

     

    
      	
              32.2

            	
              Termination
                for Valid Reasons

            

    

     

    The
      Employment Agreement may be terminated by either Party for valid reasons
      pursuant to Article 337 of the Swiss Code of Obligations at any time.

     

    Article
      33: WORKING
      TIME

     

    The
      weekly working hours for the Employee are at least 40 hours per week.

     

    The
      Employee shall work extra hours and overtime, if required and to the extent
      such
      work can reasonably be expected in good faith. 

     

    The
      Base
      Salary as defined in Section 13.1
      hereunder includes any and all remuneration for such overtime, and the Employee
      shall have no entitlement to additional compensation for such overtime, whether
      in cash nor in kind.

     

    Article
      34: VACATION

     

    The
      Employee is entitled to twenty-five (25) business days of vacation per calendar
      year.

     

    The
      Employer has the right to determine when the Employee shall take vacation.
      However, the Employer shall take the Employees requests in due consideration.
      If
      the Employee requests to take vacation he shall reasonably prior to the intended
      vacation inform the responsible executive. In any event the Employee shall
      provide for suitable internal representation and he shall care for the ongoing
      service of important affairs during his vacation.

     

    The
      vacation entitlement is based on one complete calendar year. For the year in
      which the Employment relationship begins or ends, the vacation entitlement
      is
      calculated pro
      rata temporis.
      The
      Employee shall not be entitled to retain unused vacation days in excess of
      an
      aggregate of (25) business days of vacation. 

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    Article
      35: HOLIDAYS
      AND COMPELLING ABSENCE

     

    
      	
              35.1

            	
              Holidays

            

    

     

    On
      federal and cantonal Holidays the Employee is not obliged to work.

     

    
      	
              35.2

            	
              Compelling
                Absences

            

    

     

    To
      the
      extent necessary or required, Employees are eligible to take time off for
      compelling reasons (as specified below).

     

    Compelling
      Absences include, but are not limited to, the following events for which the
      time off as set forth below apply (stated in business days):

    
       

      
        	 	
                ·

              	
                Marriage
                  of Employee:             
                  

              	
                2
                  days

              
	 	 	 	 
	 	
                ·

              	
                Attendance
                  of wedding of a family member
                  or close relative:

              	
                1
                  day

              
	 	 	 	 
	 	
                ·

              	
                Birth
                  of Employee’s child:

              	
                2
                  days

              
	 	 	 	 
	 	
                ·

              	
                Death
                  or illness of:

              	 

      

       

      
        
          	 	
                  ·

                	close family member or person living
                  in the same household:	3 days 
	 	 	 	 
	 	
                  ·

                	other family member:	2 day
	 	 	 	 
	 	
                  ·

                	close relative or friend:	1 day

        

      

      
         

        
          	 	
                  ·

                	
                  
                    Moving:

                  

                	
                  
                    1
                      day

                  

                
	 	 	 	 
	 	
                  ·

                	
                  
                    Medical
                      or dental care:

                  

                	
                  
                    as
                      required

                  

                
	 	 	 	 
	 	
                  ·

                	
                  
                    
                      Public
                        duties:

                    

                  

                	
                  
                    as
                      required

                  

                

        

      

    

     

    Compelling
      Absences do not constitute a ground for a deduction of the Employees’
entitlements to the Base Salary or vacation, unless the absence exceeds the
      time
      period as set forth above. 

     

    Article
      36: ILLNESS,
      ACCIDENT AND DEATH

     

    
      	
              36.1

            	
              Medical
                Certificate

            

    

     

    If
      the
      Employee’s absence exceeds five business days, the Employee shall, as soon as
      practicable furnish a medical certificate. However, the Employer reserves the
      right to demand for a medical certificate in case of any absence, irrespective
      of the length of the absence. The Employer is entitled to ask the Employee
      to
      consult a medical examiner at the Employer’s expense.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    
      	
              36.2

            	
              Daily
                Allowance Insurance

            

    

     

    If
      an
      Employee is prevented from performing the Employee’s duties arising out of or
      relating to the Employment due to illness (not deliberately self-inflicted
      by
      the Employee) or due to an accident (not deliberately self-inflicted by the
      Employee), then the Employer will continue to pay the base salary pursuant
      to
      the collective daily allowance insurance (Taggeldversicherung) of the Employer,
      provided that the conditions of the collective daily allowance insurance are
      being met and that the Employee complies with the conditions of the collective
      daily allowance insurance and with the directives of the Employer. In principle,
      the daily allowance insurance provides for the following coverage:

     

    90%
      of
      the Base Salary during up to 730 days after a waiting period of 30
      days.

     

    During
      the waiting period of 30 days 100% of the Base Salary according to Section
      13.1
      is paid
      to the Employee.

     

    The
      insurance premium for the daily allowance insurance is paid one half each by
      the
      Employer and the Employee.

     

    
      	
              36.3

            	
              Occupational
                and Non-occupational Accidents

            

    

     

    During
      the Employment the Employee is insured for occupational and non-occupational
      accidents. Premiums for occupational accident insurance and occupational
      sickness insurance are paid by the Employer. Premiums for non-occupational
      accident insurance are paid by the Employee.

     

    90%
      of
      the Base Salary is paid after a waiting period of 30 days.

     

    During
      the waiting period of 30 days 100% of the Base Salary according to Section
      13.1
      is paid
      to the Employee.

     

    Article
      37: INTELLECTUAL
      PROPERTY RIGHTS 

     

    The
      Employer is entitled to all work results and all intellectual property created
      by the Employee in the course of or in connection with the employment
      (notwithstanding whether in pursuance or fulfilment of a contractual duty or
      not, whether individually or with the assistance of any other individual or
      entity), and all such work results, intellectual property and related rights
      vest irrevocably in the Employer. This transfer and assignment of work results,
      intellectual property and related rights is worldwide, unlimited in time,
      unrestricted in scope and encompasses all rights and exploitations, whether
      currently known or arising in the future. To the extent certain jurisdictions
      do
      not provide for the assignability of work results or intellectual property
      and
      related rights, the Employee grants to the Employer a worldwide, irrevocable,
      exclusive, transferable and sublicensable, royalty-free, unlimited and
      unrestricted license to use, modify, develop and exploit such work results,
      intellectual property and related rights, including the right to sub-license,
      is
      hereby granted by the Employee to the Employer. Compensation for the transfer
      of
      these Intellectual Property Rights or their licensing, respectively, is included
      in the Base Salary according to Section 13.1.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    To
      the
      extent permitted by law, the Employee agrees no to put forward any claim
      regarding possible moral rights in connection with any work under this section.
      The Employee acknowledges that the Base Salary includes reasonable compensation
      for the fact that the inventions and intellectual property rights referred
      to
      above will vest in the Employer by operation of law or transfer by the Employee
      of such rights.

     

    The
      Employee will, upon first demand of the Employer, execute any documents,
      declarations, deeds of assignment or similar as may be requested by the Employer
      for evidence or perfection of the above transfer and assignment.

     

    Article
      38: DATA
      PROTECTION AND PRIVACY

     

    The
      Employer will comply with the Swiss Data Protection Act. The Employer will
      only
      collect personal data of the Employee insofar as necessary for the execution
      and
      performance of the Employment and the obligations resulting therefrom or if
      required to do so by law.

     

    The
      Employee herewith agrees that personal data may be transferred to affiliated
      companies of the Employer and further third parties within and outside of
      Switzerland if such transfer is required in connection with the Employment,
      the
      execution of the Employment Agreement, the performance of any obligations
      resulting from the Employment, the work organization of the Employer or
      otherwise required by Swiss law or the laws of any other relevant jurisdiction.
      The Employer shall ensure that personal data will be secured against
      unauthorized access if a transfer is contemplated. The Employee has the right
      to
      withdraw his consent at any time.

     

    Article
      39: NON-COMPETITION
      AND NON-SOLICITATION

     

    The
      Employee agrees that during the Employment Period and for a period of two years
      after termination of the Employment Period (the “Restricted
      Period”)
      he
      will not directly, indirectly, once, occasionally or professionally, under
      his
      name or under a third party name, on behalf of his own or on behalf of third
      parties compete with the Employer within the scope of its business. The Employee
      furthermore agrees that he will not participate in any way in any enterprise
      competing with the Employer, and he also agrees not to found or assist any
      business being active in the same line of business as the Employer. This
      non-compete undertaking shall be effective for the whole territory of the
      business activities of the Employer and each of its group companies during
      the
      Employment and at the moment of termination of the Employment.

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    During
      Restricted Period the Employee shall abstain from, directly or indirectly via
      any company owned or controlled by the Employee, enticing away, soliciting
      or
      interfering with (i) any personnel from the Employer or (ii) any person who
      is
      or was a client of the Employer.

     

    In
      the
      event the Employee breaches any of the obligations pursuant to this
      Section Article 23:
      a
      penalty of CHF 30,000 shall be owed by the Employee to the Employer for any
      such
      breach. However, the payment of the penalty does not release the Employee from
      further complying with the respective obligation. In addition, the Employer
      reserves the right to claim compensation for damages as well as the right to
      the
      remedy of specific performance.

     

    Article
      40: CONFIDENTIALITY

     

    The
      Employee will have access to confidential and proprietary information relating
      to the business and operations of the Employer and their clients. Such
      confidential and proprietary information constitutes a unique and valuable
      asset
      of the Employer and their acquisition required great time and expense. The
      disclosure or any other use of such confidential or proprietary information,
      other than for the sole benefit of the Employer, would be wrongful and would
      cause irreparable harm to the Employer or other group companies.

     

    The
      Employee is under a strict duty to keep all confidential and proprietary
      information strictly and permanently confidential and, accordingly, shall not
      during the Employment or after termination of the Employment directly or
      indirectly use for any purpose other than for the sole benefit of the Employer,
      or disclose or permit to be disclosed to any third person or entity, any
      confidential or proprietary information without first obtaining the written
      consent of the responsible executive and the party concerned, if applicable,
      except if required to do so by law. 

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

       

    

    The
      Employee may not make any statement to the media related to confidential
      information, as far as he is not authorized to do so by the responsible
      executive.

     

    Upon
      termination of this Employment Agreement for any reason, the Employee shall
      return to the Employer all files and any company documents concerning the
      business of the Employer in his possession or open to his access, including
      all
      designs, customer and price lists, printed material, documents, sketches, notes,
      drafts as well as copies thereof, regardless whether or not the same are
      originally furnished by the Employer.

     

    The
      Employer reserves the right to the remedy of specific performance of the
      Employee’s obligations in addition to any damages.

     

    Article
      41: MISCELLEANOUS

     

    
      	
              41.1

            	
              Entire
                Agreement

            

    

     

    This
      Employment Agreement constitutes the complete Employment Agreement between
      the
      Parties regarding its subject matter and supersedes all prior oral and/or
      written agreements, representations and/or communications, concerning the
      subject matter hereof.

     

    
      	
              41.2

            	
              Severability

            

    

     

    If
      any
      provision of this Employment Agreement is held to be unenforceable for any
      reason, it shall be adjusted rather than voided, if possible, in order to
      achieve the intent of the Parties to this Employment Agreement to the fullest
      extent possible. In any event, all other provisions of this Employment Agreement
      shall remain valid and enforceable to the fullest extent possible.

     

    
      	
              41.3

            	
              Amendments

            

    

     

    Any
      amendments or supplementation of this Employment Agreement shall require written
      form. The written form may be dispensed only in writing.

     

    
      	
              41.4

            	
              Governing
                Law and Jurisdiction

            

    

     

    This
      Employment Agreement shall be construed in accordance with and governed by
      Swiss
      law (without giving effect to the principles of conflicts of law).

     

    Any
      dispute, controversy or claim arising out of or in connection with this
      Employment Agreement, including the validity, invalidity, breach or termination
      thereof, and including tort claims, shall be exclusively submitted to and
      determined by the courts of Neuchâtel, Switzerland, without prejudice to a
      possible appeal to the Swiss Federal Tribunal.

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    
      	
              41.5

            	
              Execution

            

    

     

    The
      Parties have duly executed this Agreement in two originals.

     

    
      	
              41.6

            	
              Waiver

            

    

     

    The
      waiver by either Party of any breach of this Agreement by the other Party shall
      not be effective unless in writing, and no such waiver shall operate or be
      construed as the waiver of the same or another breach on a subsequent
      occasion.

     

    
      	
              41.7

            	
              Survival

            

    

     

    Sections
      XII through XV, inclusive, shall survive and continue in full force in
      accordance with their terms notwithstanding the expiration or termination of
      this Agreement or the Employment Period.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    Signatures

    

    Intersema
      Sensoric SA (Employer)

    
       

      
        	 	 	 	 
	
              	 	 	
              
	
                
Place,
                date	 	 	
                
[name]
	
              	 	 	[title]

         

        
          	 	 	 	 
	
                	 	 	
                
	
                  
Place,
                  date	 	 	
                  
[name]
	
                	 	 	[title]

        

         

      

      
        Mr.
          Hans-Peter Salvisberg (Employee)

         

      

      
        
          	 	 	 	 
	
                	 	 	
                
	
                  
Place,
                  date	 	 	
                  
Mr.
                  Hans-Peter
                  Salvisberg

        

      

    

    

    
      
        
        

      

      
        51Unassociated Document

     

    Exhibit
      I 
      

    
      

    

     

    FREEDOM
      FINANCIAL GROUP, INC.

     

      
        

      

    

     

    WARRANT
      AGREEMENT

     

    
      
        

      

    

     

    Dated
      as of February [__], 2008

     

    Warrants
      to Purchase 700,000 Shares of Common Stock

    Issued
      to

    Goldman,
      Sachs & Co. Inc. 

    for
      the benefit of 

    ReMark
      Capital Group, LLC

     

    
      
        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      	 	 	
              Page

            
	 	 	 
	
              1.

            	
              FORM,
                EXECUTION AND TRANSFER OF WARRANT CERTIFICATES

            	
              1

            
	 	 	 
	 	
              1.1.

            	
              Form
                of Warrant Certificate

            	
              1

            
	 	
              1.2.

            	
              Execution
                of Warrant Certificate; Registration Books

            	
              2

            
	 	
              1.3.

            	
              Transfer,
                Split Up, Combination and Exchange of Warrant Certificate; Lost or
                Stolen
                Warrant Certificate

            	
              2

            
	 	 	 
	
              2.

            	
              EXERCISE
                OF WARRANTS; PAYMENT OF PURCHASE PRICE

            	
              2

            
	 	 	 
	 	
              2.1.

            	
              Exercise
                of Warrant

            	
              2

            
	 	
              2.2.

            	
              Cashless
                Exercise of Warrants

            	
              3

            
	 	
              2.3.

            	
              Limitations
                on Exercise

            	
              4

            
	 	
              2.4.

            	
              Issuance
                of Common Stock

            	
              4

            
	 	
              2.5.

            	
              Unexercised
                Warrants

            	
              5

            
	 	
              2.6.

            	
              Notice
                of Expiration

            	
              6

            
	 	
              2.7.

            	
              Restrictions
                on Transfer; Restrictive Legends

            	
              6

            
	 	 	 	 
	
              3.

            	
              RESERVATION
                AND AVAILABILITY OF SHARES OF COMMON STOCK; TRANSFER TAXES

            	
              6

            
	 	 	 
	 	
              3.1.

            	
              Reservation
                of Common Stock

            	
              6

            
	 	
              3.2.

            	
              Common
                Stock to Be Duly Authorized and Issued, Fully Paid and
                Nonassessable

            	
              6

            
	 	
              3.3.

            	
              Transfer
                Taxes

            	
              7

            
	 	
              3.4.

            	
              Common
                Stock Record Date

            	
              7

            
	 	
              3.5.

            	
              CUSIP
                Number

            	
              7

            
	 	 	 
	
              4.

            	
              ADJUSTMENT
                OF PURCHASE PRICE AND NUMBER OF SHARES; FRACTIONAL SHARES; SPECIAL
                AGREEMENTS

            	
              7

            
	 	 	 
	 	
              4.1.

            	
              Adjustments

            	
              7

            
	 	
              4.2.

            	
              Fractional
                Shares

            	
              13

            
	 	
              4.3.

            	
              Right
                of Action

            	
              13

            
	 	
              4.4.

            	
              Special
                Agreement of Warrant Certificate Holders

            	
              13

            
	 	
              4.5.

            	
              Special
                Agreements of the Company

            	
              14

            
	 	 	 
	
              5.

            	
              INVESTOR
                RIGHTS

            	
              14

            
	 	 	 
	 	
              5.1.

            	
              Investor
                Rights

            	
              14

            
	 	 	 
	
              6.

            	
              INTERPRETATION
                OF THIS AGREEMENT

            	
              14

            
	 	 	 
	 	
              6.1.

            	
              Certain
                Defined Terms

            	
              14

            
	 	
              6.2.

            	
              Descriptive
                Headings

            	
              18

            
	 	 	 
	
              7.

            	
              MISCELLANEOUS

            	
              18

            
	 	 	 
	 	
              7.1.

            	
              Expenses

            	
              18

            

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

    

    
      	 	
              7.2.

            	
              Amendment
                and Waiver

            	
              19

            
	 	
              7.3.

            	
              No
                Rights or Liabilities as Stockholder

            	
              19

            
	 	
              7.4.

            	
              Entire
                Agreement; Incorporation of Attachments and Exhibits

            	
              19

            
	 	
              7.5.

            	
              Successors
                and Assigns

            	
              19

            
	
               

            	
              7.6.

            	
              Notices

            	
              19

            
	 	
              7.7.

            	
              Satisfaction
                Requirement

            	
              20

            
	 	
              7.8.

            	
              Severability

            	
              21

            
	 	
              7.9.

            	
              Counterparts

            	
              21

            
	 	
              7.10.

            	
              Governing
                Law; Submission to Jurisdiction; Waiver of Jury Trial

            	
              21

            
	 	 	 
	
              1.

            	
              Definitions

            	
              1

            
	 	 	 
	
              2.

            	
              Registration
                Rights

            	
              2

            
	 	 	 
	 	
              2.1.

            	
              Request
                for Registration

            	
              2

            
	 	
              2.2.

            	
              Company
                Registration

            	
              4

            
	 	
              2.3.

            	
              Obligation
                of the Company

            	
              5

            
	 	
              2.4.

            	
              Furnish
                Information

            	
              6

            
	 	
              2.5.

            	
              Expenses
                of Demand Registration

            	
              6

            
	 	
              2.6.

            	
              Expenses
                of Company Registration

            	
              6

            
	 	
              2.7.

            	
              Underwriting
                Requirements

            	
              7

            
	 	
              2.8.

            	
              Delay
                of Registration

            	
              7

            
	 	
              2.9.

            	
              Indemnification

            	
              7

            
	 	
              2.10.

            	
              Reports
                Under Exchange Act

            	
              9

            
	 	
              2.11.

            	
              Form
                S-3 Registration

            	
              10

            
	 	
              2.12.

            	
              Assignment
                of Registration Rights

            	
              11

            
	
               

            	
              2.13.

            	
              Limitations
                on Subsequent Registration Rights

            	
              12

            
	 	
              2.14.

            	
              Market
                Stand Off Agreement

            	
              12

            
	 	
              2.15.

            	
              Termination
                of Registration Rights

            	
              13

            
	 	 	 
	
              3.

            	
              Information
                and Observer Rights

            	
              13

            
	 	 	 
	
              4.

            	
              Other
                Rights

            	
              13

            

    

     

    Attachment
      A  -  Form
      of
      Warrant Certificate

     

    Exhibit
      A    -  Investor
      Rights

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

    WARRANT
      AGREEMENT

     

    THIS
      WARRANT AGREEMENT
      (this
“Agreement”)
      is
      dated as of February [__], 2008, between FREEDOM
      FINANCIAL GROUP, INC.,
      a
      Delaware corporation (the “Company”),
      and
REMARK
      CAPITAL GROUP, LLC,
      a
      Delaware limited liability company (“Purchaser”).

     

    RECITALS:

     

    A. Certain
      capitalized terms used in this Agreement shall have the meanings ascribed to
      them in Section 6 hereof.

     

    B. The
      Board
      of Directors has authorized the issuance of 700,000 Warrants (the “Warrants”)
      of the
      Company, each Warrant representing the right to purchase one (1) share of the
      Company’s common stock, $0.0001 par value per share (the “Common
      Stock”),
      upon
      the terms and subject to the conditions hereinafter set forth, and subject
      to
      adjustment as set forth herein.

     

    C. Each
      of
      the Company, Freedom Financial Auto Receivables, LLC, a wholly owned special
      purpose subsidiary of the Company (the “Borrower”),
      Archon Group, L.P. and the Purchaser are parties to that certain Revolving
      Loan
      and Security Agreement (as the same may be amended, restated or otherwise
      modified from time to time in accordance with its terms, the “Loan
      Agreement”),
      dated
      as of January 31, 2008, pursuant to which Purchaser has agreed to lend certain
      amounts to the Borrower and, in connection therewith, the Company has agreed
      to
      issue the Warrants to Goldman, Sachs & Co. Inc., for the benefit of
      Purchaser, on the terms set forth herein.

     

    AGREEMENT:

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual agreements set forth herein, the
      parties to this Agreement hereby agree as follows:

     

    1. FORM,
      EXECUTION AND TRANSFER OF WARRANT CERTIFICATES.

     

    1.1. Form
      of Warrant Certificate.
      The
      warrant certificate (the “Warrant
      Certificate”)
      evidencing the Warrant and the form of assignment and of election to purchase
      shares to be attached to such certificate shall be substantially in the form
      set
      forth in Attachment A
      hereto,
      and may have such letters, numbers or other marks of identification or
      designation as may be required to comply with any law or with any rule or
      regulation of any governmental authority, stock exchange or self-regulatory
      organization made pursuant thereto. The Warrant Certificate shall be dated
      the
      date of issuance thereof by the Company, either upon initial issuance or upon
      transfer or exchange, and on its face shall initially entitle the holder thereof
      (each, a “Holder”)
      to
      purchase a number of shares of Common Stock equal to the number of Warrants
      represented by such Warrant Certificate (the “Warrant
      Shares”)
      at a
      price per share equal to the Purchase Price, but the number of Warrant Shares
      and the Purchase Price shall be subject to adjustment as provided
      herein.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2. Execution
      of Warrant Certificate; Registration Books.

     

    (a) Execution
      of Warrant Certificate. The
      Warrant Certificate shall be executed on behalf of the Company by its President,
      one of its Vice Presidents or any other officer of the Company authorized by
      the
      Board of Directors. In case the officer of the Company who shall have signed
      any
      Warrant Certificate shall cease to be such an officer of the Company before
      issuance and delivery by the Company of such Warrant Certificate, such Warrant
      Certificate nevertheless may be issued and delivered with the same force and
      effect as though the individual who signed such Warrant Certificate had not
      ceased to be such an officer of the Company, and any Warrant Certificate may
      be
      signed on behalf of the Company by any individual who, at the actual date of
      the
      execution of such Warrant Certificate, shall be a proper officer of the Company
      to sign such Warrant Certificate, although at the date of the execution of
      this
      Agreement any such individual was not such an officer.

     

    (b) Registration
      Books. The
      Company will keep or cause to be kept at its office maintained at the address
      of
      the Company set forth in Section 7.6 hereof, or at such other office of the
      Company in the United States of America of which the Company shall have given
      notice to each Holder of a Warrant Certificate, books for registration and
      transfer of each Warrant Certificate issued hereunder. Such books shall show
      the
      name and address of the Holder of the Warrant Certificate, the registration
      number and the number of Warrants evidenced on its face by the Warrant
      Certificate and the date of the Warrant Certificate.

     

    1.3. Transfer,
      Split Up, Combination and Exchange of Warrant Certificate; Lost or Stolen
      Warrant Certificate.

     

    (a) Transfer,
      Split Up, etc.
      Any
      Warrant Certificate may be transferred, split up, combined or exchanged for
      another Warrant Certificate(s) entitling the registered Holder or transferee
      thereof to purchase a like number of Warrant Shares as the Warrant Certificate
      surrendered then entitled such registered Holder to purchase. Any registered
      Holder desiring to transfer, split up, combine or exchange any Warrant
      Certificate shall make such request in writing delivered to the Company, and
      shall surrender the Warrant Certificate(s) to be transferred, split up, combined
      or exchanged at the office of the Company referred to in Section 1.2(b)
      hereof, whereupon the Company shall deliver promptly to the Person entitled
      thereto a Warrant Certificate, as so requested. Each registered Holder of a
      Warrant Certificate, by its acceptance thereof, agrees not to transfer any
      Warrant Certificate in any manner which would violate Section 5 of the
      Securities Act.

     

    (b) Loss,
      Theft, etc.
      Upon
      receipt by the Company of evidence reasonably satisfactory to it of the
      ownership of and the loss, theft, destruction or mutilation of any Warrant
      Certificate, the Company at its own expense will execute and deliver, in lieu
      thereof, a new Warrant Certificate, dated the date of such lost, stolen,
      destroyed or mutilated Warrant Certificate and of like tenor, in lieu of the
      lost, stolen, destroyed or mutilated Warrant Certificate.

     

    2. EXERCISE
      OF WARRANTS; PAYMENT OF PURCHASE PRICE.

     

    2.1. Exercise
      of Warrant.

     

    (a) Manner
      of Exercise. At
      any
      time and from time to time prior to the Expiration Date, but subject to the
      limitations set forth in Section 2.3 hereof, the Holder of a Warrant
      Certificate may exercise the Warrants evidenced thereby by surrendering the
      Warrant Certificate, with an election to purchase (a form of which is attached
      to each Warrant Certificate) attached thereto duly executed, to the Company
      at
      its office referred to in Section 1.2(b) hereof, together with payment of
      the Purchase Price (if the Holder is not utilizing a cashless exercise) for
      each
      Warrant Share with respect to which the Warrants are then being exercised (the
      date of a Holder’s delivery of, such items being the “Date
      of Exercise”).

     

    
      
        
        

      

      
        I-2

        
          

        

      

      
        
        

      

    

     

    (b) Payment
      in Cash.
      Upon
      exercise of any Warrants, the Holder may pay the Purchase Price in cash or
      by
      certified or official bank check payable to the order of the Company or by
      wire
      transfer of immediately available funds to the account of the
      Company.

     

    (c) Automatic
      Cashless Exercise.
      If,
      immediately prior to the Expiration Date, any of the Warrants shall have not
      been exercised and remain outstanding, and if the Fair Market Value is greater
      than the Purchase Price immediately prior to the Expiration Date, then, unless
      the Holder of thereof otherwise elects by written notice to the Company, all
      outstanding Warrants shall be deemed to be exercised by the Holder thereof
      pursuant to Section 2.2 of this Agreement immediately prior to the Expiration
      Date (without regard to any limitations set forth in Section 2.3), automatically
      and without any affirmative action on the part of any such Holder.

     

    2.2. Cashless
      Exercise of Warrants.
      Notwithstanding the provisions of Section 2.1 hereof, if the Fair Market
      Value is greater than the Purchase Price (at the date of calculation, as set
      forth below), in lieu of exercising the Warrant as permitted in
      Section 2.1, the Holder may elect to receive shares of Common Stock equal
      to the value (as determined below) of the Warrants (or the portion thereof
      being
      canceled) by surrender of the Warrant Certificate, together with the election
      to
      purchase (a form of which is attached to each Warrant Certificate) attached
      thereto duly executed, to the Company at its office referred to in
      Section 1.2(b) hereof, in which event the Company shall issue to the Holder
      that number of Warrant Shares computed using the following formula:

     

    CS
      =
WCS
      x
      (FMV-PP)

     
      FMV

     

    where:

     

    
      	 	
              CS

            	
              equals
                the number of Warrant Shares to be issued to the Holder of the Warrant
                Certificate upon a cashless exercise

            
	 	 	 
	 	
              WCS

            	
              equals
                the gross number of Warrant Shares purchasable under the Warrants
                being
                exercised (at the date of such calculation, calculated as if the
                Purchase
                Price were being paid in cash)

            
	 	 	 
	 	
              FMV

            	
              equals
                the Fair Market Value of one share of Common Stock (at the date of
                such
                calculation)

            
	 	 	 
	 	
              PP

               

            	
              equals
                the Purchase Price (as adjusted to the date of such
                calculation).

               

            

    

     

    For
      purposes of Rule 144 promulgated under the Securities Act, it is intended,
      understood and acknowledged that the shares of Common Stock issuable upon the
      exercise of the Warrants in a cashless exercise transaction shall be deemed
      to
      have been acquired by the Holder, and the holding period for such shares shall
      be deemed to have commenced, on the date this Warrant was originally
      issued.

     

    
      
        
        

      

      
        I-3

        
          

        

      

      
        
        

      

    

     

    2.3. Limitations
      on Exercise.

     

    (a) Five
      Percent Limitation.
      Notwithstanding anything to the contrary contained herein, the number of Warrant
      Shares that may be acquired by the Holder upon any exercise of this Warrant
      (or
      otherwise in respect hereof) shall be limited to the extent necessary to insure
      that, following such exercise (or other issuance), the total number of shares
      of
      Common Stock then beneficially owned by such Holder and its Affiliates and
      any
      other Persons whose beneficial ownership of Common Stock would be aggregated
      with the Holder's for purposes of Section 13(d) of the Exchange Act, does not
      exceed 4.999% of the total number of issued and outstanding shares of Common
      Stock (including for such purpose the shares of Common Stock issuable upon
      such
      exercise). For such purposes, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. This provision shall not restrict the number of shares
      of Common Stock which a Holder may receive or beneficially own in order to
      determine the amount of securities or other consideration that such Holder
      may
      receive in connection with a transaction described in Section 4.1(c). By
      written notice to the Company, a Holder may waive the provisions of this Section
      2.3(a) as to itself but any such waiver will not be effective until the
      61st
      day
      after delivery thereof and such waiver shall have no effect on any other
      Holder.

     

    (b) Ten
      Percent Limitation.
      Notwithstanding anything to the contrary contained herein, the number of Warrant
      Shares that may be acquired by the Holder upon any exercise of this Warrant
      (or
      otherwise in respect hereof) shall be limited to the extent necessary to insure
      that, following such exercise (or other issuance), the total number of shares
      of
      Common Stock then beneficially owned by such Holder and its Affiliates and
      any
      other Persons whose beneficial ownership of Common Stock would be aggregated
      with the Holder's for purposes of Section 13(d) of the Exchange Act, does not
      exceed 9.999% of the total number of issued and outstanding shares of Common
      Stock (including for such purpose the shares of Common Stock issuable upon
      such
      exercise). For such purposes, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. This provision shall not restrict the number of shares
      of Common Stock which a Holder may receive or beneficially own in order to
      determine the amount of securities or other consideration that such Holder
      may
      receive in connection with a transaction described in Section 4.1(c). This
      restriction may not be waived by the Holder.

     

    2.4. Issuance
      of Common Stock.

     

    (a) Delivery
      of Shares.
      Upon
      timely receipt of a Warrant Certificate, with the form of election to purchase
      duly executed, accompanied by payment of the Purchase Price for each of the
      shares to be purchased in the manner provided in Section 2.1 or
      Section 2.2 hereof, the Company shall thereupon promptly (but in any event
      within three (3) Business Days of the Date Exercise) (i) cause certificates
      representing the number of whole Warrant Shares then being purchased to be
      delivered to or upon the order of the registered Holder of such Warrant
      Certificate, registered in such name or names as may be designated by such
      Holder, and (ii) deliver the cash, if any, to be paid in lieu of fractional
      shares pursuant to Section 4.2 hereof to or upon the order of the
      registered Holder of such Warrant Certificate. The Company shall, upon request
      of a Holder and subsequent to the date on which a registration statement
      covering the resale of the Warrant Shares has been declared effective by the
      Securities and Exchange Commission, use its reasonable best efforts to deliver
      Warrant Shares hereunder electronically through the Depository Trust Corporation
      or another established clearing corporation performing similar
      functions.

     

    
      
        
        

      

      
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    (b) Rescission
      Right.
      If by
      the third Business Day after a Date of Exercise the Company fails to deliver
      the
      required number of Warrant Shares in the manner required pursuant to this
      Section 2.4, then the Holder will have the right to rescind such
      exercise.

     

    (c) Buy-In
      Election.
      If by
      the third Business Day after a Date of Exercise the Company fails to deliver
      the
      required number of Warrant Shares in the manner required pursuant to this
      Section 2.4, and if after such third Business Day and prior to the receipt
      of
      such Warrant Shares, the Holder purchases (in an open market transaction or
      otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
      Holder of the Warrant Shares which the Holder anticipated receiving upon such
      exercise (a "Buy-In"),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder's total purchase price (including brokerage commissions, if any) for
      the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue by (B) the
      closing bid price of the Common Stock at the time of the delivery obligation
      giving rise to such purchase and (2) at the option of the Holder, either
      reinstate the portion of the Warrant and equivalent number of Warrant Shares
      for
      which such exercise was not honored or deliver to the Holder the number of
      shares of Common Stock that would have been issued had the Company timely
      complied with its exercise and delivery obligations hereunder. The Holder shall
      provide the Company written notice indicating the amounts payable to the Holder
      in respect of the Buy-In.

     

    (d) Unconditional
      Obligation.
      The
      Company's obligations to issue and deliver Warrant Shares in accordance with
      the
      terms hereof are absolute and unconditional, irrespective of any action or
      inaction by the Holder to enforce the same, any waiver or consent with respect
      to any provision hereof, the recovery of any judgment against any Person or
      any
      action to enforce the same, or any setoff, counterclaim, recoupment, limitation
      or termination, or any breach or alleged breach by the Holder or any other
      Person of any obligation to the Company or any violation or alleged violation
      of
      law by the Holder or any other Person, and irrespective of any other
      circumstance which might otherwise limit such obligation of the Company to
      the
      Holder in connection with the issuance of Warrant Shares. Nothing herein shall
      limit a Holder's right to pursue any other remedies available to it hereunder,
      at law or in equity including, without limitation, a decree of specific
      performance and/or injunctive relief with respect to the Company's failure
      to
      timely deliver certificates representing Warrant Shares upon exercise of the
      Warrant as required pursuant to the terms hereof.

     

    2.5. Unexercised
      Warrants.
      In case
      the registered Holder of any Warrant Certificate shall exercise less than all
      the Warrants evidenced thereby, a new Warrant Certificate evidencing Warrants
      equal in number to the number of Warrants remaining unexercised shall be issued
      by the Company to the registered Holder of such Warrant Certificate or to its
      duly authorized assigns.

     

    
      
        
        

      

      
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    2.6. Notice
      of Expiration.
      Subject
      to the provisions of Section 2.1(c), all Warrants that have not been
      exercised or purchased in accordance with the provisions of this Agreement
      shall
      expire and all rights of holders of such Warrants shall terminate and cease
      on
      the Expiration Date.

     

    2.7. Restrictions
      on Transfer; Restrictive Legends.
      No
      Warrant or Warrant Shares may be offered, sold, transferred, or otherwise
      disposed of, in whole or in part, to any Person except as permitted under the
      Securities Act and applicable state securities laws, pursuant to either an
      effective registration statement or an exemption therefrom.

     

    (a) Each
      Warrant Certificate and each certificate representing Warrant Shares, unless
      at
      the time of exercise such shares are registered under the Securities Act, shall
      bear the following legend:

     

    “The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended, and may not be sold, exchanged or
      transferred in any manner in the absence of such registration or an opinion
      of
      counsel reasonably acceptable to the Company that no such registration is
      required. The securities are subject to the terms of a certain Warrant
      Agreement, dated February [__], 2008, pursuant to which they were
      issued”

     

    Any
      certificate issued at any time in exchange or substitution for any certificate
      bearing such legend (except a new certificate issued upon completion of a public
      distribution pursuant to a registration statement under the Securities Act
      of
      the shares represented thereby) shall also bear the above legend unless, in
      the
      opinion of counsel satisfactory to the Company, the securities represented
      thereby need no longer be subject to such restrictions.

     

    3. RESERVATION
      AND AVAILABILITY OF SHARES OF COMMON STOCK; TRANSFER TAXES.

     

    3.1. Reservation
      of Common Stock.
      The
      Company covenants and agrees that it will at all times cause to be reserved
      and
      kept available out of its authorized and unissued shares of Common Stock such
      number of shares of Common Stock as will be sufficient to permit the exercise
      in
      full of all Warrants issued hereunder.

     

    3.2. Common
      Stock to Be Duly Authorized and Issued, Fully Paid and
      Nonassessable.
      The
      Company covenants and agrees that it will take all such action as may be
      necessary to ensure that all shares of Common Stock delivered upon the exercise
      of any Warrants, at the time of delivery of the certificates representing such
      shares, shall be duly and validly authorized and issued and fully paid and
      nonassessable, free of any preemptive rights and free of any Lien.

     

    
      
        
        

      

      
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    3.3. Transfer
      Taxes.
      The
      Company covenants and agrees that it will pay when due and payable any and
      all
      federal and state transfer taxes and charges that may be payable in respect
      of
      the initial issuance or delivery of:

     

    (a) each
      Warrant Certificate;

     

    (b) each
      Warrant Certificate issued in exchange for any other Warrant Certificate
      pursuant to Section 1.3(a) or Section 2.5 hereof; and

     

    (c) each
      share of Common Stock issued upon the exercise of any Warrant.

     

    3.4. Common
      Stock Record Date.
      Each
      Person in whose name any certificate for shares of Common Stock is issued upon
      the exercise of Warrants shall for all purposes be deemed to have become the
      Holder of record of the Common Stock represented thereby on, and such
      certificate shall be dated, the date upon which the originally executed Warrant
      Certificate evidencing such Warrants was duly surrendered with an election
      to
      purchase attached thereto duly executed and payment of the aggregate Purchase
      Price (and any applicable transfer taxes, if payable by such Person) was made.
      Prior to the exercise of the Warrants evidenced thereby, the Holder of a Warrant
      Certificate shall not be entitled to any rights of a stockholder in the Company
      with respect to shares for which the Warrants shall be exercisable, including,
      without limitation, the right to receive dividends or other distributions,
      and
      shall not be entitled to receive any notice of any proceedings of the Company,
      except as provided herein or in any other applicable agreement between the
      Company and such Holder.

     

    3.5. CUSIP
      Number.
      The
      Company covenants and agrees that it shall maintain its current CUSIP Number
      in
      respect of the Common Stock from the CUSIP Service Bureau of Standard &
Poor’s, a division of McGraw-Hill, Inc.

     

    4. ADJUSTMENT
      OF PURCHASE PRICE AND NUMBER OF SHARES; FRACTIONAL SHARES; SPECIAL
      AGREEMENTS.

     

    4.1. Adjustments.
      The
      number of Warrant Shares and the Purchase Price shall be subject to adjustment
      pursuant to the provisions of this Section 4.

     

    (a) Distribution
      of Property. In
      case,
      at any time during the term of the Warrants, the Company shall declare a cash
      dividend upon its Common Stock or shall distribute to holders of its Common
      Stock shares of its capital stock (other than Common Stock), stock or other
      Securities of any other Person(s), evidences of indebtedness issued by the
      Company or any other Person(s), other assets or options or warrants or rights,
      then, in each such case, immediately following the record date fixed for the
      determination of the holders of Common Stock entitled to receive such dividend
      or distribution:

     

    (i) the
      number of shares of Common Stock purchasable upon the exercise of the Warrants
      thereafter shall be determined by multiplying the number of Warrant Shares
      immediately prior to such record date by a fraction, of which the numerator
      shall be the Reference Price and the denominator shall be an amount equal to
      (A)
      the Reference Price minus (B) the Fair Market Value of the stock, securities,
      evidences of indebtedness, assets, options, warrants or rights so distributed
      in
      respect of one share of Common Stock; and

     

    
      
        
        

      

      
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    (ii) the
      Purchase Price shall be adjusted by multiplying the Purchase Price In effect
      immediately prior to the record date for such dividend or distribution by a
      fraction, of which the numerator shall be an amount equal to (A) the
      Reference Price minus (B) the Fair Market Value of the stock, securities,
      evidences of indebtedness, assets, options, warrants or rights so distributed
      in
      respect of one share of Common Stock, and the denominator shall be the Reference
      Price; and

     

    (iii) each
      adjustment made pursuant to this Section 4.1(a) shall be made on the date
      such dividend or distribution is made, and shall become effective at the opening
      of business on the Business Day next following the record date for the
      determination of stockholders entitled to such dividend or
      distribution.

     

    (b) Dividends,
      Subdivisions and Combinations. In
      case
      at any time during the term of the Warrants the number of shares of Common
      Stock
      outstanding is increased by a stock dividend payable in shares of Common Stock
      or by a subdivision or split-up of shares of Common Stock, then, following
      the
      record date fixed for the determination of holders of Common Stock entitled
      to
      receive such stock dividend, subdivision or split-up, the number of Warrant
      Shares shall be increased in proportion to such increase in outstanding shares
      and the Purchase Price in effect immediately prior to such stock dividend,
      subdivision or split-up shall be proportionately reduced. Conversely, in case
      at
      any time during the term of this Warrant the Company shall combine its
      outstanding shares of Common Stock into a smaller number of shares, the number
      of Warrant Shares immediately prior to such combination shall be proportionately
      reduced and the Purchase Price in effect immediately prior to such combination
      shall be proportionately increased.

     

    (c) Consolidation;
      Merger; Sale; Reclassification. If
      at any
      time during the term of the Warrants any capital reorganization or
      reclassification of the capital stock of the Company (other than a change in
      par
      value or from no par value to par value or as a result of a stock dividend
      or
      subdivision or split-up or combination of shares), or consolidation or merger
      of
      the Company with another corporation, or the sale or other disposition of all
      or
      substantially all of the Company’s or any of its Subsidiaries’ properties and
      assets to another Person, shall be effected in such a way that holders of shares
      of Common Stock shall be entitled to receive stock, other Securities or assets
      with respect to or in exchange for Common Stock, then as a condition of such
      reorganization, reclassification, consolidation, merger, sale or disposition,
      lawful and adequate provision shall be made whereby the Holders of the Warrants
      shall thereafter have the right to receive upon the basis and upon the terms
      and
      conditions specified herein and in lieu of the shares of Common Stock
      immediately theretofore receivable upon the exercise of the Warrants, such
      shares of stock, other Securities or assets as may be issued or payable with
      respect to or in exchange for a number of outstanding shares of Common Stock
      equal to the number of shares of Common Stock immediately theretofore so
      receivable had such reorganization, reclassification, consolidation, merger,
      sale or disposition not taken place, and in any such case lawful and adequate
      provision shall be made with respect to the rights and interests of the holders
      of the Warrants to the end that the provisions of this Agreement and of the
      Warrants (including without limitation provisions for adjustment of the Purchase
      Price and of the Warrant Shares) shall thereafter be applicable, as nearly
      as
      may be, in relation to any shares of stock, other Securities or assets
      thereafter deliverable upon the exercise of the Warrants. The Company shall
      not
      effect any such consolidation, merger or sale unless prior to or simultaneously
      with the consummation thereof the survivor or successor corporation (if other
      than the Company) resulting from such consolidation or merger or the Person
      purchasing such properties and assets shall assume the obligation to deliver
      to
      such holders such shares of stock, other Securities or assets as, in accordance
      with the foregoing provisions, such Holder may be entitled to receive. The
      provisions of this Section 4.1(c) shall similarly apply to successive
      reorganizations, reclassification, consolidations, mergers, sales or other
      dispositions.

     

    
      
        
        

      

      
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    (d) Issuance
      of Additional Common Stock. In
      addition to all other adjustments to the number Warrant Shares set forth
      elsewhere in this Agreement, if the Company shall at any time or from time
      to
      time during the term of the Warrants issue or sell any shares of Common Stock
      (or be deemed to have issued any shares of Common Stock as provided herein),
      other than Excluded Securities (i) to the Company’s Affiliates for consideration
      greater than $0.35 per share (subject to adjustment on the same basis as the
      Purchase Price), but below the Reference Price (a “Discounted
      Issuance”)
      or
      (ii) to any Person (whether or not an Affiliate of the Company) for
      consideration less than $0.35 per share (a “Below
      Exercise Price Issuance”),
      then
      the following adjustments shall occur:

     

    (A) In
      the
      event of a Discounted Issuance, the Purchase Price in effect immediately prior
      to such issuance or sale shall be reduced effective concurrently with such
      issuance or sale to an amount determined by multiplying the Purchase Price
      then
      in effect by a fraction, (x) the numerator of which shall be the sum of (1)
      the
      number of shares of Common Stock outstanding immediately prior to the Discounted
      Issuance plus (2) the number of shares of Common Stock which the aggregate
      consideration received by the Company in exchange for the Discounted Issuance
      would purchase at the Reference Price then in effect and (y) the denominator
      of
      which shall be the number of shares of Common Stock of the Company outstanding
      immediately after the Discounted Issuance. 

     

    (B) In
      the
      event of a Below Exercise Price Issuance, the Purchase Price in effect
      immediately prior to such issuance or sale shall be reduced effective
      concurrently with such issuance or sale to an amount determined by multiplying
      the Purchase Price then in effect by a fraction, (x) the numerator of which
      shall be the sum of (1) the number of shares of Common Stock outstanding
      immediately prior to the Below Exercise Price Issuance plus (2) the number
      of
      shares of Common Stock which the aggregate consideration received by the Company
      in exchange for the Below Exercise Price Issuance would purchase at $0.35 per
      share (subject to adjustment pursuant to this Section 4.1) and (y) the
      denominator of which shall be the number of shares of Common Stock of the
      Company outstanding immediately after the Below Exercise Price Issuance.

     

    
      
        
        

      

      
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    (C) In
      the
      event of either a Discounted Issuance or a Below Exercise Price Issuance, the
      number of shares which may be purchased pursuant to the Warrant Certificate
      shall be increased proportionately to any reduction in Purchase Price pursuant
      to this paragraph 4.1(d) so that after such adjustments the aggregate Purchase
      Price payable hereunder for the increased number of shares of Common Stock
      shall
      be the same as the aggregate Purchase Price in effect immediately prior to
      such
      adjustments.

     

    (e) Calculation
      of Consideration Received; Options and Warrants. For
      the
      purposes of any adjustment of the number of Warrant Shares and the Purchase
      Price pursuant to Section 4.1(d), the following provisions shall be
      applicable:

     

    (i) In
      the
      case of the issuance of Common Stock for cash, the consideration received upon
      such issuance shall be deemed to be the gross amount of cash paid
      therefor.

     

    (ii) In
      the
      case of the issuance of Common Stock for a consideration in whole or in part
      other than cash, the consideration received upon such issuance other than cash
      shall be deemed to be the Fair Market Value thereof, provided, however, that
      the
      aggregate Fair Market Value of such non-cash and cash consideration shall not
      be
      deemed to exceed the Current Market Price of the shares of Common Stock being
      issued if the Common Stock is then quoted by an organization referred to in
      the
      definition of Current Market Price.

     

    (iii) In
      the
      case of the issuance of Common Stock without consideration, the consideration
      received upon such issuance shall be deemed to be $0.0001 per
      share.

     

    (iv) In
      the
      case of the issuance of (A) options to purchase or rights to subscribe for
      Common Stock, (B) Securities by their terms convertible into or exchangeable
      for
      Common Stock, or (C) options to purchase or rights to subscribe for such
      convertible or exchangeable Securities:

     

    (A) the
      aggregate maximum number of shares of Common Stock deliverable upon the exercise
      of such options to purchase or rights to subscribe for Common Stock shall be
      deemed to have been issued at the time such options or rights were issued and
      for a consideration equal to the consideration (determined in the manner
      provided in Sections 4.1(e)(i) through 4.1(e)(iii) inclusive), if any, received
      by the Company upon the issuance of such options or rights plus the minimum
      purchase price provided in such options or rights for the Common Stock covered
      thereby, and

     

    (B) the
      aggregate maximum number of shares of Common Stock deliverable upon conversion
      of or in exchange for any such convertible or exchangeable Securities or upon
      the exercise of options to purchase or rights to subscribe for such convertible
      or exchangeable Securities and subsequent conversion or exchange thereof shall
      be deemed to have been issued at the time such Securities were issued or such
      options or rights were issued and for a consideration equal to the
      consideration, if any, received by the Company for any such Securities and
      related options or rights (excluding any cash received on account of accrued
      interest or accrued dividends), plus the minimum additional consideration,
      if
      any, to be received by the Company upon the conversion or exchange of such
      Securities or the exercise of any related options or rights (the consideration
      in each case to be determined in the manner provided in Sections 4.l(e)(i)
      through 4.l(e)(iii) inclusive); and

     

    
      
        
        

      

      
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    (C) on
      any
      change in the aggregate maximum number of shares of, or the minimum purchase
      price or other additional consolidation payable for Common Stock deliverable
      upon the exercise of any such options or rights or conversions of or exchanges
      for such Securities, other than a change resulting from the anti-dilution
      provisions thereof, the Warrant Shares automatically and forthwith shall be
      readjusted to such number as would have been obtained had the adjustment made
      upon the issuance of such options, rights or other Securities not converted
      prior to such change or options or rights related to such Securities not
      converted prior to such change been made upon the basis of such change;
      and

     

    (D) on
      the
      expiration of all such options or rights, the termination of all such rights
      to
      convert or exchange or the expiration of all options or rights related to such
      convertible or exchangeable Securities, the Warrant Shares automatically and
      forthwith shall be readjusted to such number as would have obtained had the
      adjustment made upon the issuance of such options, rights or other Securities
      or
      options or rights related to such Securities not been made.

     

    (f) Other
      Adjustments. In
      case
      at any time or from time to time during the term of the Warrants conditions
      arise by reason of any action(s) taken or omitted to be taken by the Company
      which, in the opinion of the Company’s Board of Directors, are not adequately
      covered by the provisions of this Section 4.1, and which might materially
      and adversely affect the exercise rights of the holders of the Warrants, the
      Company shall obtain an opinion of the Company’s independent certified public
      accountants, or of other independent certified public accountants selected
      by
      the Company and reasonably satisfactory to the Required Holders, setting forth
      any adjustment of the Warrant Shares and/or of the Purchase Price, on a basis
      consistent with the standards established in the other provisions of this
      Section 4.1, necessary in order to preserve, without diminution, the
      proportionate interest in the Common Stock purchasable upon the exercise of
      the
      Warrants and the exercise rights of the holders of the Warrants. Upon receipt
      of
      such opinion, the Board of Directors of the Company shall forthwith make the
      adjustments described therein.

     

    (g) Company
      Stock. For
      purposes of this Section 4.1, the number of shares of Common Stock
      outstanding or deemed to be outstanding at any given time shall not include
      shares owned or held by or for the account of the Company, and the disposition
      of any such shares shall be considered an issuance or sale of Common Stock
      for
      the purposes of Section 4.1(d).

     

    
      
        
        

      

      
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    (h) Notice
      of Adjustment. Upon
      each
      adjustment of the Purchase Price and upon each change in the number of Warrant
      Shares, and in the event of any change in the rights of the holders of the
      Warrants by reason of any other event(s) herein set forth, then and in each
      such
      case the Company promptly shall deliver to the holders of the Warrants, by
      first-class certified mail, return receipt requested, postage prepaid, a
      statement, signed by the Company’s principal financial officer, showing in
      reasonable detail the basis of such determination or the facts requiring such
      adjustment and/or change, and stating the adjusted Purchase Price and the new
      number of Warrant Shares, or specifying the other shares of stock, other
      Securities or assets and the amount thereof receivable as a result of such
      change in’ rights, and setting forth in reasonable detail the method of
      calculation and the facts upon which such calculation is based. Where
      appropriate, such statement may be given in advance and may be included as
      part
      of a notice required to be mailed under the provisions of
      Section 4.1(i).

     

    (i) Notice
      of Certain Events. If
      the
      Company shall propose to take any action requiring a calculation pursuant to
      this Section 4.1, the Company shall give notice to the holders of the
      Warrants in the manner set forth in Section 4.1(h), which notice shall
      specify the record date, if any, with respect to any such action and the date
      on
      which such action is to take place. Such notice also shall set forth such facts
      with respect thereto as shall be reasonably necessary to indicate the effect
      of
      such action (to the extent such effect may be known at the date of such notice)
      on the number of Warrant Shares and the number, kind or class of shares or
      other
      Securities or other property or assets which shall be deliverable or purchasable
      upon the occurrence of such action or deliverable upon the exercise of the
      Warrants. In the case of any action which would require the fixing of a record
      date, such notice shall be given at least ten (10) days prior to the date so
      fixed, and in the case of all other actions, such notice shall be given at
      least
      ten (10) days prior to the taking of such proposed action. Failure to give
      such
      notice, or any defect therein, shall not affect the legality or validity of
      any
      such action. The Holder of any Warrant may within ten (10) days of any notice
      delivered by the Company pursuant to this Section 4.1(i) object to any of
      the Company’s calculations contained in such notice by delivery of a notice
      setting forth such objection in reasonable detail. If such Holder of any Warrant
      and the Company shall be unable to resolve such objection within 10 days of
      delivery of such notice to the Company, such objection shall be resolved by
      an
      independent accounting firm mutually agreed upon by the Company and such Holder
      of the Warrant. The Company shall bear the fees and expenses of such firm if
      the
      Company’s calculations are not upheld by such firm. Such Holder shall bear the
      fees and expenses of such firm if the Company’s calculations are upheld by such
      firm. If a Holder of any Warrant fails to object in writing to any of the
      Company’s calculations contained in any such notice given by the Company
      pursuant to this Section 4.1(i) within ten (10) days of delivery of such notice,
      such calculation shall be deemed to be correct and accurate and binding upon
      any
      Holder failing to object.

     

    (j) Agreement
      and Warrants Not Required to be Restated. Irrespective
      of any adjustments in the number of Warrant Shares, the Purchase Price or the
      number or kind of cash, Securities or other property or assets purchasable
      upon
      the exercise of the Warrants, this Agreement and the Warrants may continue
      to
      express the same price and number and kind of Securities as are initially stated
      in this Agreement and the Warrants.

     

    
      
        
        

      

      
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    (k)  Rounding. All
      calculations under this Section 4.1 shall be made to the nearest sixth
      decimal place.

     

    (l)  Single
      Adjustment. In
      no
      event shall the number of Warrant Shares or Purchase Price be adjusted pursuant
      to more than one paragraph of this Section 4.1 with respect to a single
      event.

     

    4.2.  Fractional
      Shares.
      The
      Company shall not be required to issue fractional shares of Common Stock upon
      the exercise of any Warrant. Upon the exercise of any Warrant, there shall
      be
      paid to the Holder thereof, in lieu of any fractional share of Common Stock
      resulting therefrom, an amount of cash equal to the product of:

     

    (a)  the
      fractional amount of such share; times

     

    (b)  (i)      if
      the
      Common Stock is then quoted by an organization referred to in the definition
      of
      Current Market Price, the Current Market Price of the Common Stock;
      or

     

    (ii)  if
      the
      Common Stock is not then quoted by such an organization, the Fair Market Value
      of one share of Common Stock;

     

    in
      each
      case, as determined on the Business Day immediately prior to the date of
      exercise of such Warrant.

     

    4.3.  Right
      of Action.
      All
      rights of action in respect of the Warrants are vested in the respective
      registered holders of the Warrant Certificate, and any registered Holder of
      any
      Warrant Certificate, without the consent of the registered Holder of any other
      Warrant Certificate, may, in its own behalf and for its own benefit, enforce,
      and may institute and maintain any suit, action or proceeding against the
      Company to enforce, or otherwise act in respect of, its right to exercise the
      Warrants evidenced by such Warrant Certificate in the manner provided in such
      Warrant Certificate and in this Agreement.

     

    4.4.  Special
      Agreement of Warrant Certificate Holders.
      Every
      Holder of a Warrant Certificate by accepting the same consents and agrees with
      the Company and with every other Holder of a Warrant Certificate
      that:

     

    (a)  the
      Warrant Certificate are transferable only on the registry books of the Company
      if surrendered at the office of the Company referred to in Section 1.2(b)
      hereof, duly endorsed or accompanied by an instrument of transfer (in the form
      attached hereto); and

     

    (b)  the
      Company may deem and treat the Person in whose name each Warrant Certificate
      is
      registered as the absolute owner thereof and of the Warrants evidenced thereby
      (notwithstanding any notations of ownership or writing on the Warrant
      Certificate made by anyone other than the Company) for all purposes whatsoever,
      and the Company shall not be affected by any notice to the
      contrary.

     

    
      
        
        

      

      
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    4.5.  Special
      Agreements of the Company.
      The
      Company covenants and agrees that the Company shall not, by amendment to its
      Articles of Incorporation, as in effect on the date hereof, or through any
      reorganization, transfer of assets, consolidation, merger, dissolution,
      liquidation, issuance or sale of Securities or any other voluntary action,
      avoid
      or seek to avoid the observance or performance of any of the terms to be
      observed or performed hereunder by the Company, but shall at all times in good
      faith assist in the carrying out of all the provisions of this Section 4
      and in the taking of all such actions as may be necessary or appropriate in
      order to protect the rights of the holders of the Warrant Certificate against
      dilution or other impairment.

     

    5.  INVESTOR
      RIGHTS.

     

    5.1.  Investor
      Rights.
      Each
      Holder of a Warrant shall be entitled to the investor rights set forth in
Exhibit
      A.

     

    6.  INTERPRETATION
      OF THIS AGREEMENT.

     

    6.1.  Certain
      Defined Terms.
      For the
      purpose of this Agreement, the following terms shall have the meanings specified
      with respect thereto below:

     

    Acquisition
      Shares —
      means (i) shares of Common Stock of the Company issued in connection with a
      bona
      fide business acquisition of or by the Company, whether by merger,
      consolidation, sale of assets, sale or exchange of stock or otherwise, and
      (ii)
      any shares of Common Stock issued (or issuable upon the exercise of options
      or
      warrants to acquire shares of Common Stock) to brokers or consultants in
      connection with any such business acquisition; provided that the shares of
      Common Stock issued or issuable to any such brokers or consultants may not
      exceed five percent (5%) of the aggregate shares of Common Stock issued in
      connection with any such business acquisition.

     

    Affiliate —
      means, at any time, a Person (other than a Subsidiary or
      Purchaser):

     

    (a)  that
      directly or indirectly through one or more intermediaries Controls, or is
      Controlled by, or is under common Control with, the Company;

     

    (b)  that
      beneficially owns or holds five percent (5%) or more of any class of the Common
      Stock;

     

    (c)  five
      percent (5%) or more of the Voting Stock (or in the case of a Person that is
      not
      a corporation, five percent (5%) or more of the equity interest) of which is
      beneficially owned or held by the Company or a Subsidiary; or

     

    (d)  that
      is
      an officer or director (or a member of the immediate family of an officer or
      director) of the Company or any Subsidiary, at such time.

     

    As
      used
      in this definition,

     

    Control —
      means the possession, directly or indirectly, of the power to direct or cause
      the direction of the management and policies of a Person, whether through the
      ownership of voting securities, by contract or otherwise.

     

    
      
        
        

      

      
        I-14

        
          

        

      

      
        
        

      

    

     

    Agreement—
      references to “this Agreement” shall mean this Warrant Agreement as it may from
      time to time be amended or supplemented.

     

    Below
      Exercise Price Issuance—
shall
      have the meaning set forth in Section 4.1(d).

     

    Board
      of Directors—
means
      the board of directors of the Company or any committee thereof that, in the
      instance, shall have the lawful power to exercise the power and authority of
      such board of directors.

     

    Buy-In—
shall
      have the meaning set forth in Section 2.4(a).

     

    Business
      Day—
means
      a
      day other than a Saturday, a Sunday or a day on which banks in New York, New
      York or Springfield, Missouri are required or permitted by law (other than
      a
      general banking moratorium or holiday for a period exceeding four (4)
      consecutive days) to be closed.

     

    Common
      Stock—
shall
      have the meaning set forth in Recital B.

     

    Company—
shall
      have the meaning specified in the introductory paragraph hereof.

     

    Current
      Market Price—
shall
      mean, with respect to any Security, asset, right or evidence of indebtedness,
      on
      any date, the average for the previous ten (10) consecutive trading days of
      (i)
      the closing bid prices per unit of such Security, asset, right or evidence
      of
      indebtedness on the principal securities exchange or trading market where such
      security is listed or traded or (ii) if the foregoing does not apply, the
      closing bid price of such security in the over-the-counter market on the
      electronic bulletin board for such security or (iii) if no trading price is
      reported for such security, then the average of the bid prices of any market
      makers for such securities as reported in the “Pink Sheets” by National
      Quotation Bureau, Inc.

     

    Date
      of Exercise —
shall
      have the meaning set forth in Section 2.1(b).

     

    Discounted
      Issuance—
shall
      have the meaning set forth in Section 4.1(d).

     

    Exchange
      Act—
means
      the Securities Exchange Act of 1934, as amended.

     

    Excluded
      Employee Stock—
means
      one or more stock options, the shares of Common Stock issued upon the exercise
      of such options and stock grants representing not more than ten percent (10%)
      of
      the outstanding shares of Common Stock of the Company at any time granted to
      employees, directors and consultants of the Company pursuant to a stock
      compensation plan approved by the Board of Directors.

     

    Excluded
      Securities—
means
      and includes:

     

    (a) shares
      of
      Common Stock issued in any of the transactions described in Section 4.1(a),
      Section 4.1(b) or Section 4.1(c) hereof and in respect of which an
      adjustment has been made pursuant to such Section;

     

    (b) shares
      of
      Common Stock issuable upon exercise of the Warrants;

     

    
      
        
        

      

      
        I-15

        
          

        

      

      
        
        

      

    

     

    (c) shares
      of
      Common Stock issued upon the exercise, conversion or exchange of any warrant,
      option or other right to acquire Common Stock or any convertible or exchangeable
      Security in respect of which an adjustment was made (or was not required to
      be
      made) pursuant to Section 4.1(d) hereof;

     

    (d) Excluded
      Employee Stock;

     

    (e) solely
      for purposes of Section 4 of this Agreement (but not for purposes of Section
      4
      of Exhibit
      A
      of this
      Agreement), any Acquisition Shares issued for consideration greater than or
      equal to the Reference Price (even if less than the Purchase Price);
      and

     

    (f) solely
      for purposes of Section 4 of Exhibit
      A
      of this
      Agreement (but not for purposes of Section 4 of Exhibit
      A
      of this
      Agreement), any Acquisition Shares.

     

    Expiration
      Date—
means
      shall mean the date that is five (5) years from the date of this
      Agreement.

     

    Fair
      Market Value—
of
      any
      Security, asset, right or evidence of indebtedness shall mean, on any date,
      the
      Current Market Price of such Security, asset, right or evidence of indebtedness,
      or, if on any such date the price of such Security, asset, right or evidence
      of
      indebtedness is not quoted by any organization referred to in the definition
      of
      Current Market Price, an amount determined in good faith by the Board of
      Directors of the Company or if the Required Holders object to such
      determination, by the Valuation Agent. Such Valuation Agent’s determination of
      the Fair Market Value of such Security, asset, right or evidence of indebtedness
      shall be binding upon the Company and the holders of the Warrants. The cost
      of
      such Valuation Agent’s determination of the Fair Market Value shall be advanced
      by the Required Holders prior to such determination. In the event the Fair
      Market Value determined by the Valuation Agent shall exceed the Fair Market
      Value determined by the Board of Directors of the Company by more than ten
      percent (10%), the Company shall reimburse the Required Holders the cost
      advanced by them for such determination. With respect to the determination
      by
      the Valuation Agent of the Fair Market Value of any share of Common Stock,
      such
      Fair Market Value shall be determined to equal the quotient of:

     

    (a) the
      sum
      of:

     

    (i) the
      fair
      salable value of the Company, as a going concern, giving effect to all Property
      thereof and subject to all liabilities thereof, that would be realized in an
      arm’s length sale between an informed and willing buyer and an informed and
      willing seller, under no compulsion to buy or sell, respectively, as of a date
      that is within fifteen (15) days of the date as of which the determination
      is to
      be made, determined by the Valuation Agent, such determination to be made
      without regard to the absence of a liquid or ready market for such Common Stock;
      plus

     

    (ii) the
      aggregate exercise or conversion price of all Rights in existence and remaining
      unexercised on such date;

     

    
      
        
        

      

      
        I-16

        
          

        

      

      
        
        

      

    

     

    divided
      by

     

    (b) the
      sum
      of

     

    (i) the
      total
      number of shares of Common Stock outstanding at such time; plus

     

    (ii) the
      aggregate number of shares of Common Stock issuable in respect of Rights in
      existence and remaining unexercised at such time.

     

    Holder
      —
shall
      have the meaning set forth in Section 1.1.

     

    Initial
      Purchase Price —
means
      thirty-five cents ($0.35) per share.

     

    Loan
      Agreement —
shall
      have the meaning set forth in Recital C.

     

    Person
      —
means
      an individual, a partnership, a joint venture, a corporation, a limited
      liability company, a trust, an unincorporated organization and a government
      or
      any department or agency thereof.

     

    Property
      —
means
      any interest in any kind of property or asset, whether real, personal or mixed,
      and whether tangible or intangible.

     

    Purchaser
      —
shall
      have the meaning specified in the introductory paragraph hereof.

     

    Purchase
      Price —
means,
      prior to any adjustment pursuant to Section 4.1 of this Agreement, the
      Initial Purchase Price and thereafter, the Initial Purchase Price as adjusted
      and readjusted from time to time.

     

    Reference
      Price —
means
      as of any date of determination, the Fair Market Value of the Common
      Stock.

     

    Required
      Holders —
means,
      at any time, the holders (other than the Company or any Affiliate) of Warrant
      Certificate representing more than fifty percent (50%) of the
      Warrants.

     

    Right
      —
means
      and includes any warrant (including, without limitation, any Warrant), option
      or
      other right, to acquire Common Stock and including, without limitation, any
      right which, pursuant to the provisions of any Security, is convertible or
      exchangeable into Common Stock.

     

    Securities
      Act —
means
      the Securities Act of 1933, as amended.

     

    Security
      —
shall
      have the meaning specified in section 2(1) of the Securities Act.

     

    Subsidiary
      —
means,
      with respect to any Person, any corporation, limited liability company,
      partnership, association or other business entity of which more than fifty
      percent (50%) of the total Voting Stock is at the time owned or controlled,
      directly or indirectly, by that Person or one or more of the other Subsidiaries
      of that Person or a combination thereof. Unless otherwise expressly provided,
      all references herein to a “Subsidiary” shall mean a Subsidiary of the
      Company.

     

    
      
        
        

      

      
        I-17

        
          

        

      

      
        
        

      

    

     

    Valuation
      Agent —
means
      an investment banking firm or appraisal firm (which firm shall own no Securities
      of, and shall not be an Affiliate, Subsidiary or a related Person of, the
      Company or any Holder of Warrants) of recognized national standing retained
      by
      the Company and acceptable to the Required Holders.

     

    Voting
      Stock —
means,
      with respect to any corporation, any shares of stock of such corporation whose
      holders are entitled under ordinary circumstances to vote for the election
      of
      directors of such corporation (irrespective of whether at the time stock of
      any
      other class or classes shall have or might have voting power by reason of the
      happening of any contingency).

     

    Warrant
      —
shall
      have the meaning specified in Recital B hereof.

     

    Warrant
      Certificate —
shall
      have the meaning specified in Section 1.1 hereof.

     

    Warrant
      Shares —
shall
      have the meaning specified in Section 1.1 hereof.

     

    6.2.  Descriptive
      Headings.
      The
      descriptive headings of the several Sections of this Agreement are inserted
      for
      convenience only and do not constitute a part of this Agreement.

     

    7.  MISCELLANEOUS.

     

    7.1.  Expenses.
      The
      Company agrees to pay, and save and hold harmless Purchaser and any other Holder
      of a Warrant Certificate against liability for the payment of all out-of-pocket
      expenses (including, without limitation, reasonable attorney’s fees and
      disbursements) arising in connection with the issuance of the Warrants under
      this Agreement, including, without limitation:

     

    (a)  the
      cost,
      if any, of complying with Section 3.3 hereof;

     

    (b)  any
      subsequent proposed modification of, or proposed consent requested or initiated
      by or on behalf of the Company under, this Agreement or the Warrants, whether
      or
      not such proposed modification shall be effected or proposed consent granted
      (including, without limitation, all document production and duplication charges
      and the reasonable fees and expenses of any one special counsel engaged by
      Purchaser to represent Purchaser and any other Holder of a Warrant Certificate
      in connection therewith); and

     

    (c)  the
      enforcement of (or determination of whether or how to enforce) any rights under
      this Agreement or the Warrant Certificate or in responding to any subpoena
      or
      other legal process or informal investigative demand issued in connection with
      this Agreement or the transactions contemplated hereby or by reason of
      Purchaser’s or such other holder’s having acquired any Warrant Certificate,
      including, without limitation, reasonable attorney’s fees incurred by Purchaser
      or such other Holder and the costs and expenses incurred in any bankruptcy
      case
      involving the Company or any Subsidiary.

     

    
      
        
        

      

      
        I-18

        
          

        

      

      
        
        

      

    

     

    The
      obligations of the Company under this Section 7.1 shall survive the
      transfer of any Warrant Certificate or interest therein by Purchaser or any
      other Holder of a Warrant Certificate and the exercise or expiration of any
      Warrant,

     

    7.2.  Amendment
      and Waiver.
      This
      Agreement may be amended, and the observance of any term of this Agreement
      may
      be waived, with and only with the written consent of the Company
      and:

     

    (a)  in
      the
      case of Section 1 through Section 7, inclusive, hereof (other than
      this Section 7.2 and the definition of “Required Holders” in
      Section 6), the written consent of the Required Holders; or

     

    (b)  in
      the
      case of this Section 7.2 and the definition of “Required Holders” in
      Section 7, the written consent of all holders of Warrant
      Certificate;

     

    provided
      that no
      such amendment or waiver of any of the provisions of this Agreement pertaining
      to the Purchase Price or the number of shares of Common Stock that may be
      purchased upon exercise of each Warrant shall be effective as to the Holder
      of
      any Warrant unless consented to in writing by such holder.

     

    7.3.  No
      Rights or Liabilities as Stockholder.
      Nothing
      contained in this Agreement shall be construed as conferring upon the Holder
      of
      any Warrant any rights of a stockholder of the Company or as imposing any
      obligation on such Holder to purchase any securities or as imposing any
      liabilities on such Holder as a stockholder of the Company, whether such
      obligation or liabilities are asserted by the Company or by creditors of the
      Company.

     

    7.4.  Entire
      Agreement; Incorporation of Attachments and Exhibits.
      This
      Agreement, the Warrant Certificate, the Loan Agreement and the agreements
      contemplated thereby embody the entire agreement and understanding between
      Purchaser and the Company, and supersede all prior agreements and
      understandings, relating to the subject matter hereof. All Exhibits and
      Attachments hereto form a part of this Agreement and are incorporated into
      this
      Agreement by this reference for all purposes.

     

    7.5.  Successors
      and Assigns.
      All
      covenants and other agreements in this Agreement contained by or on behalf
      of
      any of the parties hereto shall bind and inure to the benefit of the respective
      successors and assigns of the parties hereto (including, without limitation,
      any
      Holder of a Warrant Certificate) whether so expressed or not.

     

    7.6.  Notices.
      All
      communications hereunder or under the Warrants shall be in writing, shall be
      delivered by nationwide overnight courier, or facsimile transmission (confirmed
      by delivery by nationwide overnight courier sent on the day of the sending
      of
      such facsimile transmission), and

     

    (a)  if
      to
      Purchaser, addressed to it at:

     

    ReMark
      Capital Group, LLC

    60
      Columbus Circle, 20th Floor

    New
      York,
      New York 10023

     

    
      
        
        

      

      
        I-19

        
          

        

      

      
        
        

      

    

     

    Attn:
      Jeffrey W. Kramer

     

    w/copy
      to:

     

    Goldman
      Sachs & Co. Inc.

    85
      Broad
      Street, 29th Floor

    New
      York,
      New York 10004

    Attention:
      Joseph Risico, Esq.

     

    or
      at
      such other address as the Company shall have specified to the Company in
      writing.

     

    (b)  if
      to any
      other Holder of a Warrant Certificate, addressed to such other Holder at such
      address as such Holder shall have specified to the Company in writing or, if
      any
      such other Holder shall not have so specified an address to the Company, then
      addressed to such other Holder in care of the last Holder of such Warrant
      Certificate that shall have so specified an address to the Company;
      and

     

    (c)  if
      to the
      Company, addressed to it at:

     

    Freedom
      Financial Group, Inc.

    3058
      East
      Elm Street

    Springfield,
      Missouri 65802

    Attn:
      Jerry Fenstermaker

     

    w/copy
      to:

     

    Shughart
      Thomson & Kilroy

    901
      St.
      Louis Avenue, Suite 1200

    Springfield,
      Missouri 65806

    Attention:
      Thomas O’Neal, Esq.

     

    or
      at
      such other address as the Company shall have specified to the holders of the
      Warrant Certificate in writing; provided that any such communication to the
      Company may also, at the option of any Holder of a Warrant Certificate, be
      delivered by any other means either to the Company at its address specified
      above or to any officer of the Company.

     

    Any
      communication addressed and delivered as herein provided shall be deemed to
      be
      received when actually delivered to the address of the addressee (whether or
      not
      delivery is accepted) or received by the telecopy machine of the recipient,
      Any
      communication not so addressed and delivered shall be ineffective.

     

    7.7.  Satisfaction
      Requirement.
      If any
      agreement, certificate or other writing, or any action taken or to be taken,
      is
      by the terms of this Agreement required to be satisfactory to Purchaser or
      to
      any other Holder of a Warrant Certificate, the determination of such
      satisfaction shall be made by Purchaser or such other holder, as the case may
      be, in the sole and exclusive judgment (exercised in good faith) of the Person
      or Persons making such determination.

     

    
      
        
        

      

      
        I-20

        
          

        

      

      
        
        

      

    

     

    7.8.  Severability.
      Any
      provision of this Agreement that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    7.9.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original but all of which together shall constitute one
      instrument.

     

    7.10.  Governing
      Law; Submission to Jurisdiction; Waiver of Jury Trial.
      THIS
      AGREEMENT AND THE WARRANTS CERTIFICATES ISSUED HEREUNDER SHALL BE CONSTRUED
      IN
      ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE. EACH PARTY
      HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES
      DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE
      COURT SITTING IN NEW YORK CITY FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING
      OUT
      OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH
      PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
      OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF
      ANY
      SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
      BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH PARTY
      HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
      LEGAL
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY.

     

    [Remainder
      of page intentionally blank. Next page is signature page.]

    
      
        
        

      

      
        I-21

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each of
      the parties hereto has caused this Agreement to be duly executed and delivered
      by one of its duly authorized officers or representatives.

    

      
        	
                FREEDOM
                  FINANCIAL GROUP, INC.

              
	 
	
                By:

              	 
	
                Name:
                  

              	
                Jerry
                  Fenstermaker

              
	
                Title:
                  

              	
                President

              
	 
	
                REMARK
                  CAPITAL GROUP, LLC

              
	 
	
                By:

              	 
	
                Name:
                  

              	
                Jeffrey
                  W. Kramer

              
	
                Title:
                  

              	
                Chief
                  Executive Officer

              

      

    

    
      
        
        

      

      
        I-22

        
          

        

      

      
        
        

        
          

        

      

    

    Exhibit
      A

     

    Investor
      Rights

     

    This
      Exhibit
      A
      forms a
      part of the Warrant Agreement between Freedom Financial Group, Inc. and ReMark
      Capital Group, LLC dated February [__], 2008.

     

    1.  Definitions.
      Capitalized terms used herein and not otherwise defined shall have the meanings
      assigned to them in the Warrant Certificate. For purposes of this
      Exhibit:

     

    The
      term
“Form
      S-3”
—
means
      such form under the Securities Act as in effect on the date hereof or any
      registration form under the Securities Act subsequently adopted by the SEC
      which
      permits inclusion or incorporation of substantial information by reference
      to
      other documents filed by the Company with the SEC.

     

    The
      term
“Holder”
—
means
      any Person owning or having the right to acquire Registrable Securities or
      any
      assignee thereof in accordance with Section 2.12 hereof.

     

    The
      Term
“Immediate
      Family Member”
—
shall
      mean a child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
      sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
      brother-in-law, or sister-in-law, including adoptive relationships, of a person
      referred to herein.

     

    The
      term
“Initiating
      Holders”
—
      means, collectively, any Holders who properly initiate a registration request
      under this Agreement.

     

    The
      term
“IPO”
—
means
      the Company’s first underwritten public offering of its Common Stock under the
      Securities Act.

     

    The
      term
“New
      Securities”
—
shall
      mean equity securities of the Company, whether now authorized or not, or rights,
      options, or warrants to purchase said equity securities, or securities of any
      type whatsoever that are, or may become, convertible into or exchangeable into
      or exercisable for said equity securities (collectively “New
      Securities”).

     

    The
      term
“register,”
      “registered,”
and
      “registration”
—
refer
      to a registration effected by preparing and filing a registration statement
      or
      similar document in compliance with the Securities Act, and the declaration
      or
      ordering of effectiveness of such registration statement or
      document.

     

    The
      term
“Registrable
      Securities”
—
means
      (i) the Common Stock issuable or issued upon the exercise of the Warrants,
      and
      (ii) any Common Stock of the Company issued as (or issuable upon the conversion
      or exercise of any warrant, right or other security which is issued as) a
      dividend or other distribution with respect to, or in exchange for or in
      replacement of the shares referenced in clause (i) above, excluding in all
      cases, however, any Registrable Securities sold by a person in a transaction
      in
      which his rights under Section 2 hereof are not assigned or any shares for
      which
      registration rights have terminated pursuant to Section 2.15 of this
      Exhibit.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      term
“Registrable
      Securities then outstanding”
—
means
      the number of shares determined by adding the number of shares of Common Stock
      outstanding which are, and the number of shares of Common Stock issuable
      pursuant to then exercisable or convertible securities which are, Registrable
      Securities.

     

    The
      term
“SEC”
—
means
      the Securities and Exchange Commission.

     

    The
      term
“SEC
      Rule 144”
—
means
      Rule 144 promulgated by the SEC under the Securities Act.

     

    The
      term
“SEC
      Rule 144(k)”
—
means
      Rule 144(k) promulgated by the SEC under the Securities Act.

     

    The
      term
“SEC
      Rule 145”
—
means
      Rule 145 promulgated by the SEC under the Securities Act.

     

    The
      term
“Violation”
—
means
      losses, claims, damages, or liabilities (joint or several) to which a party
      hereto may become subject under the Securities Act, the Exchange Act or other
      federal or state law, insofar as such losses, claims, damages, or liabilities
      (or actions in respect thereof) arise out of or are based upon any of the
      following statements, omissions or violations: (i) any untrue statement or
      alleged untrue statement of a material fact contained in such registration
      statement, including any preliminary prospectus or final prospectus contained
      therein or any amendments or supplements thereto, (ii) the omission or alleged
      omission to state therein a material fact required to be stated therein, or
      necessary to make the statements therein not misleading, or (iii) any violation
      or alleged violation by any other party hereto, of the Securities Act, the
      Exchange Act, any state securities law or any rule or regulation promulgated
      under the Securities Act, the Exchange Act or any state securities
      law.

     

    2.  Registration
      Rights.
      The
      Company covenants and agrees as follows:

     

    2.1.  Request
      for Registration.
      

     

    (a) If
      the
      Company shall receive at any time after February [__], 2008, a written request
      from the Holder of a majority of the Registrable Securities then outstanding
      that the Company file a registration statement under the Securities Act covering
      the registration of at least fifty percent (50%) of the Registrable Securities
      then outstanding then the Company shall:

     

    (i) within
      ten (10) days of the receipt thereof, give written notice of such request to
      all
      Holders;

     

    (ii) as
      soon
      as practicable, and in any event within 60 days of the receipt of such request,
      file a registration statement under the Securities Act covering all Registrable
      Securities which the Holders request to be registered, subject to the
      limitations of subsection 2.1(b); and

     

    (iii) use
      its
      best efforts to cause such registration statement to be declared effective
      by
      the SEC as soon as practicable but in no event later than 90 days after such
      request.

     

    
      
        
        

      

      
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    (b) If
      the
      Initiating Holders intend to distribute the Registrable Securities covered
      by
      their request by means of an underwriting, they shall so advise the Company
      as a
      part of their request made pursuant to subsection 2.1(a) and the Company shall
      include such information in the written notice referred to in subsection 2.1(a).
      The underwriter will be selected by the Initiating Holders, subject only to
      the
      reasonable approval of the Company. In such event, the right of any Holder
      to
      include such Holder’s Registrable Securities in such registration shall be
      conditioned upon such Holder’s participation in such underwriting and the
      inclusion of such Holder’s Registrable Securities in the underwriting to the
      extent provided herein. All Holders proposing to distribute their securities
      through such underwriting shall (together with the Company as provided in
      subsection 2.3(e)) enter into an underwriting agreement in customary form with
      the underwriter or underwriters selected for such underwriting. Notwithstanding
      any other provision of this Section 2.1, if the underwriter advises the
      Initiating Holders in writing that marketing factors require a limitation of
      the
      number of shares to be underwritten, then the Initiating Holders shall so advise
      all Holders of Registrable Securities which would otherwise be underwritten
      pursuant hereto, and the number of shares of Registrable Securities that may
      be
      included in the underwriting shall be allocated among all Holders of Registrable
      Securities, including the Initiating Holders, in proportion (as nearly as
      practicable) to the number of Registrable Securities of the Company owned by
      each Holder; provided, however, that the number of shares of Registrable
      Securities held by the Holders to be included in such underwriting shall not
      be
      reduced unless all other securities are first entirely excluded from the
      underwriting. To facilitate the allocation of shares in accordance with the
      above provisions, the Company or the underwriters may round the number of shares
      allocated to any Holder to the nearest 100 shares.

     

    (c) The
      Company shall not be obligated to effect, or to take any action to effect,
      any
      registration 

     

    (i) pursuant
      to this Section 2.1:

     

    (A) In
      any
      particular jurisdiction in which the Company would be required to execute a
      general consent to service of process in effecting such registration, unless
      the
      Company is already subject to service in such jurisdiction and except as may
      be
      required under the Securities Act;

     

    (B) After
      the
      Company has effected two registrations pursuant to this Section 2.1 and such
      registrations have been declared or ordered effective;

     

    (C) If
      the
      Initiating Holders propose to dispose of shares of Registrable Securities that
      may be immediately registered on Form S-3 pursuant to a request made pursuant
      to
      Section 2.11 below; or

     

    (ii) pursuant
      to any other provision of this Agreement in any particular jurisdiction in
      which
      the Company would be required to execute a general consent to service of process
      in effecting such registration, unless the Company is already subject to service
      in such jurisdiction and except as may be required under the Securities
      Act.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (d) Notwithstanding
      the foregoing, if the Company shall furnish to Holders requesting a registration
      statement pursuant to this Section 2.1 a certificate signed by the Chief
      Executive Officer of the Company stating that in the good faith judgment of
      the
      Board of Directors of the Company it would be materially detrimental to the
      Company and its stockholders for such registration statement to become effective
      or to remain effective as long as such registration statement would otherwise
      be
      required to remain effective because such action (x) would materially interfere
      with a significant acquisition, corporate reorganization or other similar
      transaction involving the Company, (y) would require premature disclosure of
      material information that the Company has a bona fide business purpose for
      preserving as confidential or (z) would render the Company unable to comply
      with
      requirements under the Securities Act or Exchange Act, the Company shall have
      the right to defer taking action with respect to such filing for a period of
      not
      more than one hundred twenty (120) days after receipt of the request of the
      Initiating Holders; provided, however, that the Company may not utilize this
      right more than once in any twelve-month period and provided further that the
      Company shall not register any securities for the account of itself or any
      other
      stockholder during such one hundred twenty (120) day period other than a
      registration statement relating either to the sale of securities to employees
      of
      the Company pursuant to a stock option, stock purchase or similar plan or an
      SEC
      Rule 145 transaction, a registration on any form that does not include
      substantially the same information as would be required to be included in a
      registration statement covering the sale of the Registrable Securities, or
      a
      registration in which the only Common Stock being registered is Common Stock
      issuable upon conversion of debt securities that are also being
      registered).

     

    A
      registration statement shall not be counted until such time as such registration
      statement has been declared effective by the SEC (unless the Initiating Holders
      withdraw their request for such registration (other than as a result of
      information concerning the business or financial condition of the Company which
      is made known to the Investors after the date on which such registration was
      requested) and elect not to pay the registration expenses therefor pursuant
      to
      Section 2.5). A registration statement shall not be counted if, as a result
      of
      an exercise of the underwriter's cut-back provisions, fewer than 50% of the
      total number of Registrable Securities that Holders have requested to be
      included in such registration statement are actually included.

     

    2.2.  Company
      Registration.
      If the
      Company proposes to register (including for this purpose a registration effected
      by the Company for stockholders other than the Holders) any of its stock or
      other securities under the Securities Act in connection with the public offering
      of such securities solely for cash (other than a registration statement relating
      either to the sale of securities to employees of the Company pursuant to a
      stock
      option, stock purchase or similar plan or an SEC Rule 145 transaction, a
      registration on any form which does not include substantially the same
      information as would be required to be included in a registration statement
      covering the sale of the Registrable Securities or a registration in which
      the
      only Common Stock being registered is Common Stock issuable upon conversion
      of
      debt securities which are also being registered), the Company shall, at such
      time, promptly give each Holder written notice of such registration. Upon the
      written request of each Holder given within twenty (20) days after mailing
      of
      such notice by the Company in accordance with Section 7.6 of the Warrant
      Agreement, the Company shall, subject to the provisions of Section 2.7, cause
      to
      be registered under the Securities Act all of the Registrable Securities that
      each such Holder has requested to be registered. The Company shall have the
      right to terminate or withdraw any registration initiated by it under this
      Section 2.2 prior to the effectiveness of such registration whether or not
      any
      Holder has elected to include securities in such registration. The expenses
      of
      such withdrawn registration shall be borne by the Company in accordance with
      Section 2.6 hereof.

     

    
      
        
        

      

      
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    2.3.  Obligation
      of the Company.
      Whenever required under this Section 2 to effect the registration of any
      Registrable Securities, the Company shall, as expeditiously as reasonably
      possible:

     

    (a) prepare
      and file with the SEC a registration statement with respect to such Registrable
      Securities and use its reasonable best efforts to cause such registration
      statement to become effective, and, upon the request of the Holders of a
      majority of the Registrable Securities registered thereunder, keep such
      registration statement effective for a period of up to one hundred twenty (120)
      days or, if earlier, until the distribution contemplated in the Registration
      Statement has been completed; provided, however, that (i) such 120-day period
      shall be extended for a period of time equal to the period the Holder refrains
      from selling any securities included in such registration at the request of
      an
      underwriter of Common Stock (or other securities) of the Company; and (ii)
      in
      the case of any registration of Registrable Securities on Form S-3 which are
      intended to be offered on a continuous or delayed basis, subject to compliance
      with applicable SEC rules, such 120-day period shall be extended, if necessary,
      to keep the registration statement effective until all such Registrable
      Securities are sold;

     

    (b) prepare
      and file with the SEC such amendments and supplements to such registration
      statement and the prospectus used in connection with such registration statement
      as may be necessary to comply with the provisions of the Securities Act with
      respect to the disposition of all securities covered by such registration
      statement;

     

    (c) furnish
      to the Holders such numbers of copies of a prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Securities Act, and
      such
      other documents as they may reasonably request in order to facilitate the
      disposition of Registrable Securities owned by them;

     

    (d) use
      its
      reasonable best efforts to register and qualify the securities covered by such
      registration statement under such other securities or Blue Sky laws of such
      jurisdictions as shall be reasonably requested by the Holders; provided that
      the
      Company shall not be required in connection therewith or as a condition thereto
      to qualify to do business or to file a general consent to service of process
      in
      any such states or jurisdictions, unless the Company is already subject to
      service in such jurisdiction and except as may be required by the Securities
      Act;

     

    (e) in
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter of such offering. Each Holder participating in such
      underwriting shall also enter into and perform its obligations under such an
      agreement;

     

    (f) use
      reasonable best efforts to cause all such Registrable Securities registered
      pursuant to this Agreement hereunder to be listed on a national securities
      exchange or trading system and each securities exchange and trading system
      on
      which similar securities issued by the Company are then listed;

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (g)       
      provide
      a
      transfer agent and registrar for all Registrable Securities registered pursuant
      hereunder and a CUSIP number for all such Registrable Securities, in each case
      not later than the effective date of such registration;

     

    (h)       
      use
      its
      reasonable best efforts to furnish, at the request of any Holder requesting
      registration of Registrable Securities pursuant to this Section 2, on the date
      on which such Registrable Securities are sold to the underwriter, (i) an
      opinion, dated such date, of the counsel representing the Company for the
      purposes of such registration, in form and substance as is customarily given
      to
      underwriters in an underwritten public offering, addressed to the underwriters,
      if any, and (ii) a “comfort” letter dated such date, from the independent
      certified public accountants of the Company, in form and substance as is
      customarily given by independent certified public accountants to underwriters
      in
      an underwritten public offering, addressed to the underwriters, if
      any.

     

    2.4.  Furnish
      Information.
      It
      shall be a condition precedent to the obligations of the Company to take any
      action pursuant to this Section 2 with respect to the Registrable Securities
      of
      any selling Holder that such Holder shall furnish to the Company such
      information regarding itself, the Registrable Securities held by it, and the
      intended method of disposition of such securities as shall be reasonably
      required to effect the registration of such Holder’s Registrable
      Securities.

     

    2.5.  Expenses
      of Demand Registration.
      All
      expenses other than underwriting discounts and commissions incurred in
      connection with registrations, filings or qualifications pursuant to Section
      2.1, including (without limitation) all registration, filing and qualification
      fees, printers’ and accounting fees, fees and disbursements of counsel for the
      Company and the reasonable fees and disbursements of one counsel for the selling
      Holders shall be borne by the Company; provided, however, that the Company
      shall
      not be required to pay for any expenses of any registration proceeding begun
      pursuant to Section 2.1 if the registration request is subsequently withdrawn
      at
      the request of the Holders of a majority of the Registrable Securities to be
      registered (in which case all participating Holders shall bear such expenses
      pro
      rata based upon the number of Registrable Securities that were to be included
      in
      the withdrawn registration), unless the Holders of a majority of the Registrable
      Securities agree to forfeit their right to one demand registration pursuant
      to
      Section 2.1; provided further, however, that if at the time of such withdrawal,
      the Holders have learned of a material adverse change in the condition,
      business, or prospects of the Company from that known to the Holders at the
      time
      of their request and have withdrawn the request with reasonable promptness
      after
      learning of such information, then the Holders shall not be required to pay
      any
      of such expenses and shall retain their rights pursuant to Section
      2.1.

     

    2.6.  Expenses
      of Company Registration.
      The
      Company shall bear and pay all expenses incurred in connection with any
      registration, filing or qualification of Registrable Securities with respect
      to
      the registrations pursuant to Section 2.2 hereof for each Holder (which right
      may be assigned as provided in Section 2.12 hereof), including (without
      limitation) all registration, filing, and qualification fees, printers and
      accounting fees relating or apportionable thereto and the fees and disbursements
      of one counsel for the selling Holders selected by them, but excluding
      underwriting discounts and commissions relating to Registrable
      Securities.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    2.7.  Underwriting
      Requirements.
      In
      connection with any offering involving an underwriting of shares of the
      Company’s capital stock pursuant to Section 2.2, the Company shall not be
      required to include any of the Holders’ securities in such underwriting unless
      they accept the terms of the underwriting as agreed upon between the Company
      and
      its underwriters, and then only in such quantity as the underwriters determine
      in their sole discretion will not jeopardize the success of the offering by
      the
      Company. If the total number of securities, including Registrable Securities,
      requested by stockholders to be included in such offering exceeds the amount
      of
      securities to be sold other than by the Company that the underwriters determine
      in their reasonable discretion is compatible with the success of the offering,
      then the Company shall be required to include in the offering only that number
      of such securities, including Registrable Securities, which the underwriters
      and
      the Company determine in their sole discretion will not jeopardize the success
      of the offering. In no event shall any Registrable Securities be excluded from
      such offering unless all other stockholders’ securities have been first
      excluded. In the event that the underwriters determine that less than all of
      the
      Registrable Securities requested to be registered can be included in such
      offering, then the Registrable Securities that are included in such offering
      shall be apportioned pro rata among the selling Holders based on the number
      of
      Registrable Securities held by all selling Holders or in such other proportions
      as shall mutually be agreed to by all such selling Holders. Notwithstanding
      the
      foregoing, in no event shall the amount of securities of the selling Holders
      included in the offering be reduced below twenty percent (20%) of the total
      amount of securities included in such offering, unless such offering is the
      Company’s IPO in which case the selling Holders may be excluded beyond this
      amount if the underwriters make the determination described above and no other
      stockholder’s securities are included in such offering. For purposes of the
      preceding parenthetical concerning apportionment, for any selling stockholder
      which is a Holder of Registrable Securities and which is an investment fund,
      partnership, limited liability company or corporation, the partners, members,
      retired partners, retired members, stockholders and Affiliates of such Holder,
      or the estates and family members of any such partners, retired partners,
      members and retired members and any trusts for the benefit of any of the
      foregoing persons shall be deemed to be a single “selling Holder”, and any
      pro-rata reduction with respect to such “selling Holder” shall be based upon the
      aggregate amount of shares carrying registration rights owned by all entities
      and individuals included in such “selling Holder,” as defined in this
      sentence.

     

    2.8.  Delay
      of Registration.
      No
      Holder shall have any right to obtain or seek an injunction restraining or
      otherwise delaying any registration pursuant to this Agreement as the result
      of
      any controversy that might arise with respect to the interpretation or
      implementation of this Section 2.

     

    2.9.  Indemnification.
      In the
      event any Registrable Securities are included in a registration statement under
      this Section 2:

     

    (a)        To
      the
      extent permitted by law, the Company will indemnify and hold harmless each
      Holder, the partners, members, officers, directors and stockholders of each
      Holder, legal counsel and accountants for each Holder, any underwriter (as
      defined in the Securities Act) for such Holder and each person, if any, who
      controls such Holder or underwriter within the meaning of the Securities Act
      or
      the Exchange Act, against any Violation and the Company will pay to each such
      Holder, underwriter, controlling person or other aforementioned person, any
      legal or other expenses reasonably incurred by them in connection with
      investigating or defending any such loss, claim, damage, liability, or action
      as
      such expenses are incurred; provided, however, that the indemnity agreement
      contained in this subsection 2.9(a) shall not apply to amounts paid in
      settlement of any such loss, claim, damage, liability, or action if such
      settlement is effected without the consent of the Company (which consent shall
      not be unreasonably withheld), nor shall the Company be liable in any such
      case
      for any such loss, claim, damage, liability, or action to the extent that it
      arises out of or is based upon a Violation which occurs in reliance upon and
      in
      conformity with written information furnished expressly for use in connection
      with such registration by any such Holder, underwriter, controlling person
      or
      other aforementioned person.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (b)       
      To
      the
      extent permitted by law, each selling Holder will severally and not jointly
      indemnify and hold harmless the Company, each of its directors, each of its
      officers who has signed the registration statement, each person, if any, who
      controls the Company within the meaning of the Securities Act, legal counsel
      and
      accountants for the Company, any underwriter, any other Holder selling
      securities in such registration statement and any controlling person of any
      such
      underwriter or other Holder, against any losses, claims, damages, or liabilities
      (joint or several) to which any of the foregoing persons may become subject,
      under the Securities Act, the Exchange Act or other federal or state law,
      insofar as such losses, claims, damages, or liabilities (or actions in respect
      thereto) arise out of or are based upon any Violation, in each case to the
      extent (and only to the extent) that such Violation occurs in reliance upon
      and
      in conformity with written information furnished by such Holder expressly for
      use in connection with such registration; and each such Holder will pay, any
      legal or other expenses reasonably incurred by any person intended to be
      indemnified pursuant to this subsection 2.9(b), in connection with investigating
      or defending any such loss, claim, damage, liability, or action; provided,
      however, that the indemnity agreement contained in this subsection 2.9(b) shall
      not apply to amounts paid in settlement of any such loss, claim, damage,
      liability or action if such settlement is effected without the consent of the
      Holder, which consent shall not be unreasonably withheld; provided, further,
      that, in no event shall any indemnity under this subsection 2.9(b) exceed the
      net proceeds from the offering received by such Holder, except in the case
      of
      fraud or willful misconduct by such Holder.

     

    (c)       
      Promptly
      after receipt by an indemnified party under this Section 2.9 of notice of the
      commencement of any action (including any governmental action), such indemnified
      party will, if a claim in respect thereof is to be made against any indemnifying
      party under this Section 2.9, deliver to the indemnifying party a written notice
      of the commencement thereof and the indemnifying party shall have the right
      to
      participate in, and, to the extent the indemnifying party so desires, jointly
      with any other indemnifying party similarly noticed, to assume the defense
      thereof with counsel mutually satisfactory to the parties; provided, however,
      that an indemnified party (together with all other indemnified parties which
      may
      be represented without conflict by one counsel) shall have the right to retain
      one separate counsel, with the fees and expenses to be paid by the indemnifying
      party, if representation of such indemnified party by the counsel retained
      by
      the indemnifying party would be inappropriate due to actual or potential
      differing interests between such indemnified party and any other party
      represented by such counsel in such proceeding.

     

    
      
        
        

      

      
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    (d)       
      In
      order
      to provide for just and equitable contribution to joint liability under the
      Securities Act in any case in which either (i) any Holder exercising rights
      under this Agreement, or any controlling person of any such Holder, makes a
      claim for indemnification pursuant to this Section 2.9 but it is judicially
      determined (by the entry of a final judgment or decree by a court of competent
      jurisdiction and the expiration of time to appeal or the denial of the last
      right of appeal) that such indemnification may not be enforced in such case
      notwithstanding the fact that this Section 2.9 provides for indemnification
      in
      such case, or (ii) contribution under the Securities Act may be required on
      the
      part of any such selling Holder or any such controlling person in circumstances
      for which indemnification is provided under this Section 2.9, then, and in
      each
      such case, the Company and such Holder will contribute to the aggregate losses,
      claims, damages or liabilities to which they may be subject (after contribution
      from others) in such proportion as is appropriate to reflect the relative fault
      of the indemnifying party on the one hand and of the indemnified party on the
      other in connection with the statements or omissions that resulted in such
      loss,
      liability, claim, damage, or expense as well as any other relevant equitable
      considerations. The relative fault of the indemnifying party and of the
      indemnified party shall be determined by reference to, among other things,
      whether the untrue or alleged untrue statement of a material fact or the
      omission or alleged omission to state a material fact relates to information
      supplied by the indemnifying party or by the indemnified party and the parties’
relative intent, knowledge, access to information, and opportunity to correct
      or
      prevent such statement or omission; provided however, that, in any such case,
      (I) no such Holder will be required to contribute any amount in excess of the
      public offering price of all such Registrable Securities offered and sold by
      such Holder pursuant to such registration statement, and (II) no person or
      entity guilty of fraudulent misrepresentation (within the meaning of Section
      11(f) of the Securities Act) will be entitled to contribution from any person
      or
      entity who was not guilty of such fraudulent misrepresentation; provided
      further, that in no event shall a Holder’s liability pursuant to this Section
      2.9(d), when combined with the amounts paid or payable by such holder pursuant
      to Section 2.9(b), exceed the proceeds from the offering (net of any
      underwriting discounts or commissions) received by such Holder, except in the
      case of willful fraud by such Holder.

     

    (e)       
      Notwithstanding
      the foregoing, to the extent that the provisions on indemnification and
      contribution contained in the underwriting agreement entered into in connection
      with the underwritten public offering are in conflict with the foregoing
      provisions, the provisions in the underwriting agreement shall
      control.

     

    (f)       
      Unless
      otherwise superceded by an underwriting agreement entered into in connection
      with the underwritten public offering, the obligations of the Company and
      Holders under this Section 2.9 shall survive the completion of any offering
      of
      Registrable Securities in a registration statement under this Section 2, and
      otherwise and shall survive the termination of this Agreement. 

     

    2.10.   
      Reports
      Under Exchange Act.
      With a
      view to making available to the Holders the benefits of Sec Rule 144 promulgated
      under the Securities Act and any other rule or regulation of the SEC that may
      at
      any time permit a Holder to sell securities of the Company to the public without
      registration or pursuant to a registration on Form S-3, the Company agrees
      to:

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (a)       
      make
      and
      keep public information available, as those terms are understood and defined
      in
      SEC Rule 144, at all times after the effective date of the first registration
      statement filed by the Company for the offering of its securities to the general
      public so long as the Company is subject to the periodic reporting requirements
      under Sections 13 or 15(d) of the Exchange Act;

     

    (b)       
      file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the Securities Act and the Exchange Act; and

     

    (c)       
      furnish
      to any Holder, so long as the Holder owns any Registrable Securities, forthwith
      upon request (i) a written statement by the Company that it has complied with
      the reporting requirements of SEC Rule 144, the Securities Act and the Exchange
      Act (at any time after it has become subject to such reporting requirements),
      or
      that it qualifies as a registrant whose securities may be resold pursuant to
      Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent
      annual or quarterly report of the Company and such other reports and documents
      so filed by the Company, and (iii) such other information as may be reasonably
      requested in availing any Holder of any rule or regulation of the SEC which
      permits the selling of any such securities without registration or pursuant
      to
      such form.

     

    2.11.   
      Form
      S-3 Registration.
      In case
      the Company shall receive from Holders of at least 50% of all Registrable
      Securities then outstanding a written request or requests that the Company
      effect a registration on Form S-3 and any related qualification or compliance
      with respect to all or a part of the Registrable Securities owned by such Holder
      or Holders, the Company will: 

     

    (a)       
      promptly
      give written notice of the proposed registration, and any related qualification
      or compliance, to all other Holders; and

     

    (b)       
      as
      soon
      as practicable, effect such registration and all such qualifications and
      compliances as may be so requested and as would permit or facilitate the sale
      and distribution of all or such portion of such Holder’s or Holders’ Registrable
      Securities as are specified in such request, together with all or such portion
      of the Registrable Securities of any other Holder or Holders joining in such
      request as are specified in a written request given within 15 days after receipt
      of such written notice from the Company; provided, however, that the Company
      shall not be obligated to effect any such registration, qualification or
      compliance, pursuant to this Section 2.11: (1) if Form S-3 is not then available
      for such offering by the Holders; (2) if the Holders, together with the holders
      of any other securities of the Company entitled to inclusion in such
      registration, propose to sell Registrable Securities and such other securities
      (if any) at an aggregate price to the public (net of any underwriters’ discounts
      or commissions) of less than $1 million; (3) if the Company shall furnish
      to the Holders a certificate signed by the President of the Company stating
      that
      in the good faith judgment of the Board of Directors of the Company, it would
      be
      materially detrimental to the Company and its stockholders for such
      Form S-3 Registration to be effected at such time, in which event the
      Company shall have the right to defer the filing of the Form S-3 registration
      statement for a period of not more than one hundred twenty (120) days after
      receipt of the request of the Holder or Holders under this Section 2.11;
      provided, however, that the Company shall not utilize this right more than
      once
      in any twelve month period and provided further that the Company shall not
      register any securities for the account of itself or any other stockholder
      during such one hundred twenty (120) day period (other than a registration
      relating solely to the sale of securities of participants in a Company stock
      plan, a registration relating to a corporate reorganization or transaction
      under
      Rule 145 of the Securities Act, a registration on any form that does not include
      substantially the same information as would be required to be included in a
      registration statement covering the sale of the Registrable Securities, or
      a
      registration in which the only Common Stock being registered is Common Stock
      issuable upon conversion of debt securities that are also being registered);
      (4)
      if the Company has, within the twelve (12) month period preceding the date
      of
      such request, already effected two registrations on Form S-3 for the Holders
      pursuant to this Section 2.11; or (5) in any particular jurisdiction in which
      the Company would be required to qualify to do business or to execute a general
      consent to service of process in effecting such registration, qualification
      or
      compliance; or (6) during the period ending one hundred eighty (180) days after
      the effective date of a registration statement subject to Section 2.2
      hereof.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (c)       
      Subject
      to the foregoing, the Company shall file a registration statement covering
      the
      Registrable Securities and other securities so requested to be registered as
      soon as practicable after receipt of the request or requests of the Holders.
      All
      expenses incurred in connection with a registration requested pursuant to
      Section 2.11, including (without limitation) all registration, filing,
      qualification, printer’s and accounting fees and the reasonable fees and
      disbursements of counsel for the selling Holder or Holders and counsel for
      the
      Company, but excluding any underwriters’ discounts or commissions associated
      with Registrable Securities, shall be borne by the Company. Registrations
      effected pursuant to this Section 2.11 shall not be counted as demands for
      registration or registrations effected pursuant to Sections 2.1. 

     

    (d)       
      If
      the
      Initiating Holders intend to distribute the Registrable Securities covered
      by
      their request by means of an underwriting, they shall so advise the Company
      as
      part of their request made pursuant to this Section 2.11 and the Company shall
      include such information in the written notice referred to in Section 2.11(a).
      The provisions of Section 2.1(b) shall be applicable to such request (with
      the
      substitution of Section 2.11 for references to Section 2.1).

     

    2.12.   
      Assignment
      of Registration Rights.
      The
      rights to cause the Company to register Registrable Securities pursuant to
      this
      Section 2 may be assigned (but only with all related obligations) by a Holder to
      a transferee or assignee of such securities that (i) is a subsidiary, Affiliate,
      parent, partner, member, limited partner, retired partner, retired member or
      stockholder of a Holder, (ii) is a Holder’s family member or trust for the
      benefit of an individual Holder, or (iii), after such assignment or transfer,
      holds at least 100,000 shares of Registrable Securities (subject to appropriate
      adjustment for stock splits, stock dividends, combinations and other
      recapitalizations), provided: (a) the Company is, within a reasonable time
      after
      such transfer, furnished with written notice of the name and address of such
      transferee or assignee and the securities with respect to which such
      registration rights are being assigned; (b) such transferee or assignee agrees
      in writing to be bound by and subject to the terms and conditions of this
      Agreement, including without limitation the provisions of Section 2.14 below;
      and (c) such assignment shall be effective only if immediately following such
      transfer the further disposition of such securities by the transferee or
      assignee is restricted under the Securities Act. Notwithstanding the foregoing,
      the right of a Holder to demand the registration of Restricted Securities
      pursuant to Section 2.1(a) may only be transferred to clause (i) or (ii) of
      the
      preceding sentence. For the purposes of determining the number of shares of
      Registrable Securities held by a transferee or assignee, the holdings of
      transferee or assignee (i) that is a subsidiary, parent, partner, limited
      partner, retired partner, member, retired member or stockholder of a Holder;
      (ii) that is an Affiliate of the Holder, which means with respect to a limited
      liability company or a limited liability partnership, a fund or entity managed
      by the same manager or managing member or general partner or management company
      or by an entity controlling, controlled by, or under common control with such
      manager or managing member or general partner or management company, (iii)
      who
      is a Holder’s Immediate Family Member, or (iv) that is a trust for the benefit
      of an individual Holder or such Holder’s Immediate Family Member, shall be
      aggregated together and with those of the assigning Holder; provided that all
      assignees and transferees who would not qualify individually for assignment
      of
      registration rights shall have a single attorney-in-fact for the purpose of
      exercising any rights, receiving notices or taking any action under this Section
      2.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    2.13.   
      Limitations
      on Subsequent Registration Rights.
      From
      and after the date of this Agreement, the Company shall not, without the prior
      written consent of the Holders of a majority of the Registrable Securities
      then
      outstanding, enter into any agreement with any holder or prospective holder
      of
      any securities of the Company which would allow such holder or prospective
      holder (a) to include such securities in any registration unless under the
      terms
      of such agreement, such holder or prospective holder may include such securities
      in any such registration only to the extent that the inclusion of such
      securities will not reduce the amount of the Registrable Securities of the
      Holders that are included or (b) to demand registration of any securities held
      by such holder or prospective holder. 

     

    2.14.   
      Market
      Stand Off Agreement.
      Each
      Holder hereby agrees that it will not, without the prior written consent of
      the
      managing underwriter, during the period commencing on the date of the final
      prospectus relating to the Company’s IPO and ending on the date specified by the
      Company and the managing underwriter (such period not to exceed one hundred
      eighty (l80) days) (i) lend, offer, pledge, sell, contract to sell, sell any
      option or contract to purchase, purchase any option or contract to sell, grant
      any option, right or warrant to purchase, or otherwise transfer or dispose
      of,
      directly or indirectly, any shares of Common Stock or any securities convertible
      into or exercisable or exchangeable for Common Stock held immediately prior
      to
      the effectiveness of the Registration Statement for such offering, or (ii)
      enter
      into any swap or other arrangement that transfers to another, in whole or in
      part, any of the economic consequences of ownership of the Common Stock, whether
      any such transaction described in clause (i) or (ii) above is to be settled
      by
      delivery of Common Stock or other securities, in cash or otherwise. The
      foregoing provisions of this Section 2.14 shall apply only to the Company’s IPO,
      shall not apply to the sale of any shares to an underwriter pursuant to an
      underwriting agreement, and shall only be applicable to the Holders if all
      officers, directors and greater than one percent (1%) stockholders of the
      Company enter into similar agreements. The underwriters in connection with
      the
      Company’s IPO are intended third party beneficiaries of this Section 2.14 and
      shall have the right, power and authority to enforce the provisions hereof
      as
      though they were a party hereto. Each Holder further agrees to execute such
      agreements as may be reasonably requested by the underwriters in the Company’s
      IPO that are consistent with this Section 2.14 or that are necessary to give
      further effect thereto. Any discretionary waiver or termination of the
      restrictions of any or all of such agreements by the Company or the underwriters
      shall apply to all Holders subject to such agreements pro rata based on the
      number of shares subject to such agreements.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    In
      order
      to enforce the foregoing covenant, the Company may impose stop transfer
      instructions with respect to the Registrable Securities of each Holder (and
      the
      shares or securities of every other person subject to the foregoing restriction)
      until the end of such period.

     

    2.15.   
      Termination
      of Registration Rights.
      

     

    (a)       
      No
      Holder
      shall be entitled to exercise any right provided for in this Section 2 after
      ten
      (10) years following the consummation of the IPO. 

     

    (b)       
      The
      rights set forth in this Section 2 shall terminate as to any Holder, when the
      Registrable Securities held by such Holder (together with any Affiliate of
      such
      Holder with whom such Holder must aggregate its sales under SEC Rule 144) could
      be sold without restriction under SEC Rule 144(k) within a ninety (90) day
      period.

     

    3.  Information
      and Observer Rights.
      The
      Company shall deliver to Holders of Warrants all information otherwise required
      to be delivered to the stockholders of the Company under the Securities Act
      or
      the Exchange Act. 

     

    4.  Other
      Rights.
      The
      Company agrees that, if the SEC, either before, on or after the effective date
      of any registration statement filed pursuant hereto, expresses the view that
      Goldman, Sach & Co. Inc. (“Goldman
      Sachs”)
      should
      be deemed an “underwriter” in connection with the offering made pursuant to such
      registration statement (including by way of a comment of the staff of the SEC
      on
      such registration statement that is not resolved to the satisfaction of Goldman
      Sachs), then (i) the Company shall cooperate with Goldman Sachs in allowing
      Goldman Sachs to conduct customary “underwriter’s due diligence” with respect to
      the Company and satisfy its obligations under the Securities Act in respect
      thereof, and (ii) upon the request of Goldman Sachs, the Company
      shall:

     

    (a)  Treat
      Goldman Sachs, both in its capacity as an underwriter and as a selling
      shareholder in connection with the offering, together with each member or
      limited or general partner thereof, each member or limited or general partner
      of
      each such member or limited or general partner, each of their respective
      Affiliates, officers, directors, stockholders, employees, advisors and agents
      and each Person who controls (within the meaning of the Securities Act or the
      Exchange Act) such Persons and each of their respective representatives, as
      indemnified parties under Section 2.9 hereof.

     

    (b)  Prepare
      and file with the SEC any amendments and/or supplements to the registration
      statement and the prospectus included therein as may be necessary to respond
      to
      the SEC’s view that Goldman Sachs should be deemed an “underwriter” in
      connection with the offering and using its reasonable best efforts to comply
      with any related requests of the SEC so that the registration statement and
      the
      prospectus included therein may be used by Goldman Sachs in connection with
      the
      disposition of Registrable Securities.

     

    (c)  In
      the
      case of any underwritten offering of Registrable Securities (each, an
“Underwritten
      Offering”),
      cause
      the Company’s counsel to deliver to Goldman Sachs a legal opinion, addressed to
      Goldman Sachs, in the same form and covering the same matters as the legal
      opinion delivered by the Company’s counsel to the underwriter or underwriters of
      such Underwritten Offering.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (d)  In
      the
      case of any Underwritten Offering, cause the Company’s independent public
      accountants to deliver to Goldman Sachs a “cold comfort” letter, addressed to
      Goldman Sachs, in the same form and covering the same matters with respect
      to
      the registration statement and the prospectus included therein as the letter
      delivered by the Company’s independent public accountants to the underwriter or
      underwriters of such Underwritten Offering.

     

    (e)  Deliver
      to Goldman Sachs an officer’s certificate from the Chief Executive Officer and
      the Chief Financial Officer of the Company to the effect that:

     

    (i)  (x)
      the
      registration statement and any amendments thereto, as of the applicable
      effective date thereof, (y) any prospectus or prospectus supplement included
      therein, at the applicable time of filing thereof, and (z) any other information
      or materials conveyed to investors at the time of sale to such investors, as
      of
      the time of such sale, do not contain any untrue statement of a material fact
      or
      omit to state a material fact necessary to make the statements made therein
      not
      misleading; and

     

    (ii)  The
      financial statements, and other financial information included in (or
      incorporated by reference into) the registration statement and any amendments
      thereto and the prospectus and any prospectus supplement included therein fairly
      present in all material respects the financial condition, results of operations
      and cash flows of the registrant as of, and for, the periods
      presented.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    ATTACHMENT
      A

     

    The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933, as amended, and may not be sold, exchanged, or
      transferred in any manner in the absence of such registration or an opinion
      of
      counsel reasonably acceptable to the Company that no such registration is
      required. The securities are subject to the terms of a certain Warrant
      Agreement, dated February [__], 2008, pursuant to which they were
      issued.

     

    WARRANT
      CERTIFICATE

     

    FREEDOM
      FINANCIAL GROUP, INC.

     

    
      	No.
              001 	
              700,000
                Warrants 

            

    

     

    Date:
      February [__], 2008

     

    This
      Warrant Certificate certifies that GOLDMAN,
      SACHS & CO. INC. or
      registered assigns, is the registered Holder of FOUR
      MILLION ($700,000)
      Warrants. Each Warrant entitles the owner thereof to purchase (subject to the
      limitations set forth in Section 2.3 of the Warrant Agreement) on or before
      the
      Expiration Date one (1) fully paid and nonassessable share of Common Stock
      of
FREEDOM
      FINANCIAL GROUP, INC. (together
      with its successors and assigns, the “Company”),
      a
      Delaware corporation, at a Purchase Price of $0.35 per share upon (i)
      presentation and surrender of this Warrant Certificate with a form of election
      to purchase duly executed and (ii) unless the Holder elects to exercise this
      Warrant in a cashless exercise pursuant to Section 2.2 of the Warrant Agreement,
      delivery to the Company of the payment of the Purchase Price in the manner
      set
      forth in the Warrant Agreement. The number of shares of Common Stock that may
      be
      purchased upon exercise of each Warrant and the Purchase Price are the number
      and the Purchase Price as of the date hereof, and are subject to adjustment
      as
      referred to below.

     

    The
      Warrants are issued pursuant to the Warrant Agreement, dated as of February
      [__], 2008 (as it may from time to time be amended or supplemented, the
“Warrant
      Agreement”),
      between the Company and Purchaser (as defined therein), and are subject to
      all
      of the terms, provisions and conditions thereof, which Warrant Agreement is
      hereby incorporated herein by reference and made a part hereof and to which
      Warrant Agreement reference is hereby made for a full description of the rights,
      obligations, duties and immunities of the Company and the holders of the Warrant
      Certificate. Capitalized terms used, but not defined, herein have the respective
      meanings ascribed to them in the Warrant Agreement.

     

    As
      provided in the Warrant Agreement, the Purchase Price and the number of shares
      of Common Stock that may be purchased upon the exercise of the Warrants
      evidenced by this Warrant Certificate are, upon the happening of certain events,
      subject to modification and adjustment. As further set forth in, and subject
      to,
      the Warrant Agreement, the expiration date of this Warrant Certificate is 5:00
      p.m. Central Time on February [__], 2013.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

     

    This
      Warrant Certificate shall be exercisable, at the election of the Holder, either
      in its entirety or in part from time to time. If this Warrant Certificate shall
      be exercised in part, the Holder shall be entitled to receive, upon surrender
      hereof, another Warrant Certificate or Warrant Certificate for the number of
      Warrants not exercised. This Warrant Certificate, with or without other Warrant
      Certificate, upon surrender in the manner set forth in the Warrant Agreement,
      may be exchanged for another Warrant Certificate or Warrant Certificate of
      like
      tenor evidencing Warrants entitling the Holder to purchase a like aggregate
      number of shares of Common Stock as the Warrants evidenced by the Warrant
      Certificate or Warrant Certificate surrendered shall have entitled such Holder
      to purchase.

     

    Except
      as
      expressly set forth in the Warrant Agreement, no Holder of this Warrant
      Certificate shall be entitled to vote or receive dividends or be deemed for
      any
      purpose the holder of shares of Common Stock or of any other Securities of
      the
      Company that may at any time be issued upon the exercise hereof, nor shall
      anything contained in the Warrant Agreement or herein be construed to confer
      upon the Holder hereof, as such, any of the rights of a Holder of a share of
      Common Stock in the Company or any right to vote upon any matter submitted
      to
      holders of shares of Common Stock at any meeting thereof, or to give or withhold
      consent to any corporate action (whether upon any recapitalization, issuance
      of
      stock, reclassification of Securities, change of par value, consolidation,
      merger, conveyance, or otherwise) or, except as provided in the Warrant
      Agreement, to receive notice of meetings, or to receive dividends or
      subscription rights, or otherwise, until the Warrant or Warrants evidenced
      by
      this Warrant Certificate shall have been exercised as provided in the Warrant
      Agreement.

     

    THIS
      WARRANT, CERTIFICATE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND
      THE
      RIGHTS OF THE COMPANY AND THE HOLDER HEREOF SHALL BE GOVERNED BY, THE LAWS
      OF
      THE STATE OF NEW YORK.

     

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    WITNESS
      the
      signature of a proper officer of the Company as of the date first above
      written.

     

    FREEDOM
      FINANCIAL GROUP, INC.

     

    
      
        	
                FREEDOM FINANCIAL GROUP, INC.

              
	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

    

    

    ATTEST:

     

    
      	 
	Secretary 

    

     

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    [FORM
      OF ASSIGNMENT]

     

    (To
      be executed by the registered Holder if

     

    such
      Holder desires to transfer the Warrant Certificate)

     

    FOR
      VALUE RECEIVED,
      _______________________________ hereby sells, assigns and transfers
      unto

     

    ____________________________________________________________________(Please
      print name, address and taxpayer identification number or social security number
      of transferee.)

     

    the
      accompanying Warrant Certificate, together with all right, title and interest
      therein, and does hereby irrevocably constitute and appoint:

     

    ____________________________________________________________________attorney,
      to transfer the accompanying Warrant Certificate on the books of the Company,
      with full power of substitution. The transferee’s tax identification or social
      security number is _______________.

     

    Dated:
      __________,
      _____.

    

      
        	
                [HOLDER]

              
	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

    

     

    NOTICE

     

    The
      signature to the foregoing Assignment must correspond to the name as written
      upon the face of the accompanying Warrant Certificate or any prior assignment
      thereof in every particular, without alteration or enlargement or any change
      whatsoever.

     

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    [FORM
      OF ELECTION TO PURCHASE]

     

    (To
      be executed by the registered Holder if

    such
      Holder desires to exercise the Warrant Certificate)

     

    To:
      __________________________________:

     

    The
      undersigned hereby irrevocably elects to exercise _______ Warrants represented
      by the accompanying Warrant Certificate to purchase the shares of Common Stock
      issuable upon the exercise of such Warrants and requests that certificates
      for
      such shares be issued in the name of:

     

    ______________________________________________________________________________

    (Please
      print name and address.)

    

    ______________________________________________________________________________

    (Please
      insert social security or other identifying number.)

     

    The
      undersigned ________ hereby delivers the Purchase Price for such shares in
      accordance with Section 2.1 of the Warrant Agreement OR ________ hereby elects
      to exercise the cashless exercise option pursuant to Section 2.2 of the Warrant
      Agreement. The undersigned represents that it is acquiring the shares of Common
      Stock for its own account and not with a view to distribution, and it will
      not
      sell these shares unless they have been registered under the Securities Act
      of
      1933 or an exemption from such registration requirement is
      available.

     

    If
      such
      number of Warrants shall not be all the Warrants evidenced by the accompanying
      Warrant Certificate, a new Warrant Certificate for the balance remaining of
      such
      Warrants shall be registered in the name of and delivered to:

     

    

    ______________________________________________________________________________

    (Please
      print name and address.)

     

    

    ______________________________________________________________________________

    (Please
      insert social security or other identifying number.)

     

    Dated:
      __________,
      ____.

     

    
      
        	
                [HOLDER]

              
	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

    

     

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    NOTICE

     

    The
      signature to the foregoing Election to Purchase must correspond to the name
      as
      written upon the face of the accompanying Warrant Certificate or any prior
      assignment thereof in every particular, without alteration or enlargement or
      any
      change whatsoever.

     

    
      
        
        

      

      
        A-6

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