Document:

EXHIBIT 10.1

The Directors
Thermodynetics Inc
651 Day Hill Road
Windsor
CT 06095-1714
USA

10 March 2006

Dear Sirs,

                            APPOINTMENT OF DAWNAY DAY

1.       INTRODUCTION

1.1      We are  pleased to propose the  appointment  of Dawnay,  Day  Corporate
         Finance Limited ("DDCF") to act as financial and Nominated  Adviser and
         Dawnay, Day Townsley Limited ("DDT"), a division of Dawnay, Day Brokers
         Limited,  as Broker to  Thermodynetics  Inc.  DDCF and DDT are together
         referred to herein and in the attached standard terms as "Dawnay, Day".

1.2      Thermodynetics Inc  ("Thermodynetics" or "the Client") is a US publicly
         traded  company  based in Windsor,  Connecticut,  USA.  Thermodynetics,
         through  its  subsidiary,  Turbotec  Products  Inc  ("Turbotec"),  is a
         manufacturer  of  high  performance,   high  quality  heat  exchangers,
         fabricated  metal components and flexible  connector  products for heat
         transfer, transportation,  and plumbing applications.  Turbotec markets
         its  products in the United  States,  Canada and abroad to customers in
         the  space   conditioning,   refrigeration,   automotive,   biomedical,
         plumbing, appliance, water heating and aerospace industries.

 1.3     It is proposed that the Client will  establish a UK  registered  Public
         Limited  Company  ("Newco")  which is  expected  to change  its name to
         Turbotec  Products  PLC (or such other name as the Client may  approve)
         which  will  subsequently  acquire  the  whole of the  common  stock of
         Turbotec  held by the Client in exchange for the issue to the Client of
         ordinary shares in Newco. As a result, Newco will become a wholly-owned
         subsidiary of the Client.

1.4      It is proposed  that  Newco's  ordinary  shares are admitted to trading
         ("Admission")  on AIM, a market  operated by London Stock  Exchange PLC
         ("LSE") in  conjunction  with a share  placing  ("the  Placing")  under
         which:

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1.4.1    approximately  $3.5M (net of  expenses)  will be raised as capital  for
         Newco's trading subsidiary, Turbotec, through the issue of new ordinary
         shares in Newco; and

1.4.2    approximately $3.5M (net of expenses) will be raised as capital for the
         Client through the sale of ordinary shares held by it in Newco.

1.5      The proposed  Placing and Admission are herein together  referred to as
         the "Transaction".

1.6      Dawnay,  Day has  agreed to use its  reasonable  endeavours  to procure
         investors for the new and existing  ordinary  shares in Newco which are
         to be issued and sold under the Placing.

1.7      Following the Transaction it is envisaged that the Client will retain a
         shareholding  of  approximately  60 per cent of the then  issued  share
         capital of Newco.

1.8      Dawnay,  Day  has  also  agreed  with  the  Client  that,  on and  from
         Admission, it will act as Newco's Nominated Adviser and Broker.

2.       SCOPE

2.1      DDCF WILL ACT AS FINANCIAL  ADVISER TO THE CLIENT UP TO ADMISSION  AND,
         ON AND FROM THAT DATE, DDCF WILL ACT AS NOMINATED  ADVISER TO NEWCO AND
         IN THESE RESPECTS ITS ROLE WILL INCLUDE:

2.1.1    conducting  such due  diligence  as DDCF may require in relation to the
         Client,  Newco and Turbotec and reviewing  information  supplied by the
         Client and Turbotec and their  advisers for the purposes of  completing
         all the necessary preparations for Newco's Admission;

2.1.2    discussing  the selection  and  appointment  of Newco's other  advisers
         (including  solicitors  to  the  issue,  public  relations  agents  and
         registrars) with the Client, making  recommendations and effecting such
         introductions as the Client may request;

2.1.3    advising the Client in relation to any matters  arising  which may have
         an impact on Newco's  "suitability  for  Admission"  and  assisting the
         Client to resolve such issues;

2.1.4    arranging and  coordinating  the processes  leading to the Admission of
         Newco's ordinary shares;

2.1.5    assisting  with the  preparation  of a  presentation  for  investors in
         relation to Newco and Turbotec;

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2.1.6    co-ordinating the preparation of Newco's Admission  Document/prospectus
         and all supporting documents and assisting in the drafting thereof;

2.1.7    approving Newco's Admission Document/prospectus and pathfinder (and the
         presentation  to investors) as necessary for the purposes of S21 of the
         Financial Services and Markets Act 2000 ("FSMA");

2.1.8    discussing share incentive arrangements for Newco (and/or Turbotec) and
         any other matters which arise in connection with the proposed Admission
         with the Client and its other professional advisers;

2.1.9    generally assisting the Client with the Admission process for Newco and
         other matters incidental thereto;

2.1.10   following Admission, acting as Newco's Nominated Adviser pursuant to
         which DDCF will provide advice on Newco's and the directors' continuing
         obligations under the AIM Rules and other matters arising. The scope of
         the  Nominated  Adviser's  role  is  broad  and  may  involve  Specific
         Assignments  from time to time.  Any matter  which  absorbs more than 2
         days shall be treated as a Specific Assignment;

2.1.11   advising  Newco  on  compliance  with the City  Code on  Takeovers  and
         Mergers  and  Substantial  Acquisition  Rules  and  liaising  with  the
         Takeover Panel as DDCF deems appropriate;

2.1.12   liaising with the LSE and regulatory bodies as required.

2.2      DDT WILL, ON AND FROM ADMISSION, ACT AS BROKER TO NEWCO AND AS SUCH ITS
         ROLE PRIOR TO AND FOLLOWING ADMISSION WILL INCLUDE:

2.2.1    advising the Client in relation to proposals to raise capital for Newco
         through the issue of new  ordinary  shares  (and/or  other  securities)
         under the Placing;

2.2.2    advising the Client in relation to  proposals to raise  capital for the
         Client  through  the sale of existing  ordinary  shares  (and/or  other
         securities) under the Placing;

2.2.3    assisting  with the  preparation  of a  presentation  for  investors in
         relation to Newco and Turbotec;

2.2.4    preparing any pre-marketing research documentation;

2.2.5    coordinating  and arranging the marketing to investors of the issue and
         sale of ordinary shares (and/or other securities) in Newco;

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2.2.6    coordinating  and  arranging  the  Placing/underwriting   arrangements,
         including,  the  receipt  of funds by the  Client  and  Newco,  dealing
         arrangements, settlement registration and the payment of certain agreed
         expenses on behalf of the Client and Newco;

2.2.7    following  Admission,  as Newco's Broker,  maintaining  regular contact
         with Newco  identifying  any  significant  or unusual  movements in its
         share price and identifying,  as requested or required and as available
         to  DDT,  trading  in  Newco's  ordinary  shares  and  providing,  when
         appropriate,  data and statistics on share price  movements and trading
         volumes;

2.2.8    preparing  analysts'  reports on Newco at such  intervals as are deemed
         appropriate (after consultation with Newco's management);

2.2.9    providing twice yearly analyses of Newco's share registers;

2.2.10   providing guidance to Newco on its management of market expectations;

2.2.11   when  appropriate and when  requested,  arranging for the management of
         Newco to make presentations to institutional  investors and advising on
         the form and content of such presentations.

2.3      FOLLOWING ADMISSION, DAWNAY, DAY WILL:

2.3.1    if requested (and on reasonable notice), attend board meetings,  annual
         general meetings and extraordinary general meetings of Newco; and

2.3.2    provide  such other  advice and  assistance  as may be  required by the
         board of Newco  and  agreed  with  Dawnay,  Day as  would  normally  be
         provided  by a  nominated  adviser,  financial  adviser and broker of a
         company whose securities are traded on AIM.

2.4      Dawnay, Day will work in conjunction with, and on occasions Dawnay, Day
         may need to rely on work performed by, Newco (and,  where  appropriate,
         by the Client) and Newco's  other  advisers.  The scope of the services
         provided by Dawnay, Day and its responsibilities in providing them will
         be  restricted  to those  usually  provided  and assumed by a company's
         nominated  adviser  or broker.  In  particular,  Dawnay,  Day would not
         expect  to  advise  on  the   commercial   aspects  of  any  particular
         transaction,  neither will we advise on legal,  taxation or  accounting
         issues, or in any other areas which are outside our expertise.

2.5      For  the   avoidance  of  doubt  it  is  agreed  that   Dawnay,   Day's
         responsibilities in relation to the Transaction and following Admission
         will not  include  verifying  any advice  (whether  verbal or  written)
         provided to us by the  professional  parties  including  solicitors and
         accountants  retained  by the  Client  and  Newco.  Dawnay,  Day shall,
         however, be entitled to rely on this advice in performing its services.

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2.6      For the  avoidance  of doubt,  it is  agreed  that  Dawnay,  Day is not
         accepting   responsibility   for  the  commercial   assessment  of  the
         Transaction  or any other  activities of the Client and/or Newco,  such
         responsibility being entirely that of the Client's directors.

2.7      For the  avoidance  of doubt,  it is  agreed  that  Dawnay,  Day is not
         obliged to sell,  acquire,  place,  underwrite  or  sub-underwrite  any
         investments,  or to lend  monies,  unless  and  until  it is  otherwise
         expressly so agreed in writing.

2.8      Dawnay,  Day may make  unsolicited  communications  with the Client and
         Newco in connection  with the  performance  of its services  under this
         Agreement.

2.9      In carrying on its corporate  finance and broking business Dawnay,  Day
         is subject  not only to the general  laws that apply to such  business,
         but also to a number of rules and regulations and the requirements of a
         number of  regulators,  many of which may also apply directly to Newco.
         Particular examples are the rules and regulations of the LSE, the Panel
         on Takeovers and Mergers,  the Financial Services Authority ("FSA") and
         the Bank of England. The Client agrees that Dawnay, Day's duties to the
         Client and Newco will not restrict  Dawnay,  Day's  freedom to take all
         steps that it considers to be necessary to comply with the laws,  rules
         and  regulations  applicable to it and to refuse to take steps which it
         does not consider to be compliant, even if its action in so doing would
         apart from the provisions of this paragraph  conflict with the terms of
         this Agreement.

2.10     In order to assist in carrying  out its services  under this  Agreement
         Dawnay,  Day shall be  entitled  but not  obliged to appoint  legal and
         other advisers or sub-agents as it deems reasonably necessary, the cost
         of which will be borne by the Client  and/or  Newco but such costs will
         be agreed with the Client before the costs are incurred and Dawnay, Day
         will inform the Client on a timely basis as to the costs incurred.  For
         the avoidance of doubt,  Dawnay,  Day confirms its intention to appoint
         legal advisers to advise it in connection with the Transaction.

3.       DAWNAY, DAY'S REMUNERATION

3.1      The  Client   agrees   that   Dawnay,   Day  shall  be  paid  a  fixed,
         non-refundable  fee of  (pound)20,000 to be paid on a staged basis (the
         "STAGED  FEE") as  follows:  (pound)10,000  to be paid at the time when
         this Agreement is signed,  (pound)5,000 to be paid one month thereafter
         and a further (pound)5,000 to be paid two weeks thereafter.

3.2      The Client also agrees that, on Admission, Dawnay, Day will be entitled
         to be paid out of the proceeds of issue and sale of ordinary  shares in
         Newco pursuant to the Placing :

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3.2.1    a commission  equal to 6 PER CENT.  of the monies raised by the Placing
         of new ordinary shares in Newco; and

3.2.2    a further fee of (pound)100,000.

3.3      in the event Newco's ordinary shares are not admitted to trading on AIM
         for any  reason,  Dawnay,  Day shall not be  entitled to any fees other
         than the Staged Fee and out-of-pocket  expenses reasonably and properly
         incurred by Dawnay, Day.

3.4      The Client also agrees that, on Admission,  it shall pay Dawnay,  Day a
         commission  equal to 6 PER CENT.  of the  monies  raised by the sale of
         existing  ordinary  shares in Newco held by the Client  pursuant to the
         Placing.

3.5      VAT, if applicable, will be charged on any fees and costs invoiced.

3.6      Following  Admission and subject to agreement of the terms of Nominated
         Adviser  and  Broker  Agreements,  Dawnay,  Day  will be due an  annual
         retainer of (pound)40,000 for acting as Nominated Adviser and Broker to
         Newco payable quarterly in advance with the first quarterly payment due
         on the date of  Admission.  Dawnay,  Day will also be paid further fees
         for Specific  Assignments  to be agreed with the Client at the relevant
         time.

3.7      Should  any   transactions   proceed  other  than  the  Transaction  as
         contemplated in this Agreement and should Dawnay,  Day have contributed
         directly or indirectly to that/those  transaction(s),  then Dawnay, Day
         shall  be  paid  fees   commensurate   with  its  advice  and/or  other
         involvement.

3.8      Should the  Transaction  become more  protracted,  or more complex than
         initially contemplated,  Dawnay, Day reserves the right to bill further
         amounts on account and/or charge additional fees to those set out above
         on a basis to be agreed. In particular, the above fees are on the basis
         that Admission takes place by no later than 30 September 2006;

3.9      Fees and expenses payable to Dawnay, Day pursuant to paragraphs 3.2 and
         3.4 above may be  deducted  from the  proceeds of the issue and sale of
         ordinary shares in Newco pursuant to the Placing,.  Subject thereto all
         fees and expenses shall be paid within 10 days of the relevant invoice.

4.       EXPENSES

4.1      Any out-of-pocket  expenses  (including hotel  accommodation and travel
         expenses)  reasonably and properly incurred by Dawnay,  Day in relation
         to its  role as  described  above  shall be for the  Client's  account.
         Dawnay,  Day  shall  not  incur  out-of-pocket  expenses  in  excess of
         (pound)3,000  in any three  month  period  without the  Client's  prior
         approval.  Such  costs/expenses will be recoverable by Dawnay, Day

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         from the Client  whether or not any  transaction  is  completed.  It is
         agreed that, on Admission,  Dawnay,  Day may recover costs and expenses
         incurred from the the proceeds of the issue and sale of ordinary shares
         in Newco pursuant to the Placing.

4.2      The Client will pay the  reasonable and properly  incurred  expenses of
         the  lawyers  acting on behalf of Dawnay,  Day in  connection  with the
         Transaction  as  described  above.  An  estimate  of such  expenses  in
         connection  with the  Transaction  will be  provided  to the Client for
         approval prior to Dawnay, Day engaging lawyers for this purpose and any
         actual or  foreseeable  variation  in any legal fee  quotation  will be
         notified to the Client on a timely  basis.  For the avoidance of doubt,
         the  Client  will pay  such  reasonable  and  properly  incurred  legal
         expenses regardless of whether the Transaction proceeds and Dawnay, Day
         will  inform  the  Client  and Newco on a timely  basis as to the costs
         incurred.  Any  payment  in  respect  of such  legal  fees  will not be
         regarded as a  reduction  in the fees  payable  pursuant to the monthly
         transaction  retainer  fees  described  above.  It is agreed  that,  on
         Admission, Dawnay, Day may recover the expenses of its lawyers from the
         proceeds of the issue and sale of ordinary  shares in Newco pursuant to
         the Placing.

5.       RESPONSIBILITY AND ANNOUNCEMENTS

5.1      The  Client's   directors   acknowledge   that  they  are  the  persons
         responsible  for  information  provided  to  Dawnay,  Day  and  for the
         published  documentation  and  that  they  will  be  required  to  sign
         responsibility  statements  in relation  thereto.  For the avoidance of
         doubt the scope of this Agreement  specifically excludes any commitment
         or  responsibility   on  the  part  of  Dawnay,   Day  to  conduct  any
         verification or due diligence work and you should therefore not rely on
         Dawnay,  Day to carry out verification or seek,  identify or assess due
         diligence matters.

5.2      Immediately prior to and following  Admission,  Dawnay, Day may release
         announcements  on Newco's  behalf,  subject to the  approval  of a duly
         authorised  director of Newco.  Newco's directors recognise that, while
         Dawnay, Day may advise on the drafting of announcements,  it is Newco's
         directors  who are the persons  responsible  for them.  Where there are
         circumstances  where the release of  announcements  brings Dawnay,  Day
         within the scope of the Market  Abuse  regime (even though there may be
         no intention to commit market abuse), Dawnay, Day may decline to act as
         release agent for Newco.

5.3      The Client agrees that,  subsequent  to completion of the  Transaction,
         Dawnay, Day will have the right to publish  advertisements in financial
         and other newspapers and journals at Dawnay,  Day's expense  describing
         its services in connection solely with the Transaction, the contents of
         which  advertisements  will

<PAGE>

         be subject to the  Client's  prior  approval  (such  approval not to be
         unreasonably withheld or delayed).

6.       FURTHER OBLIGATIONS

6.1      The Client  agrees that it will or it will procure that Newco will,  as
         far as practicable:

6.1.1    notify  Dawnay Day in advance  of, and  discuss  with  Dawnay,  Day the
         content,  timing  and  manner  of,  any  Announcement  which,  for  the
         avoidance of doubt,  shall include draft  preliminary  announcements of
         both Newco's  quarterly  and annual  accounts as well as other  matters
         which Dawnay, Day may advise as being appropriate;

6.1.2    supply to Dawnay,  Day such  information  as the LSE may request and/or
         specify in  accordance  with the AIM Rules and such  other  information
         relating to Newco as Dawnay,  Day may require generally to enable it to
         discharge its obligations at all times including,  without prejudice to
         the generality of the following,  details of Newco's  trading  progress
         against any trading projections which are in the market;

6.1.3    keep  Dawnay,  Day  informed,  so far  as is  practical,  of any  other
         information  which is likely  materially to affect the general  course,
         character or nature of the business of Newco or of its  performance  or
         which  may be  necessary  to be made  known to the  public  in order to
         enable the  shareholders  and the public to  appraise  the  position of
         Newco;

6.1.4    discuss with Dawnay,  Day without delay any major new  developments  in
         Newco's  sphere of activity  which are not public  knowledge  and which
         may,  by virtue of the effect of those  developments  on its assets and
         liabilities  or  financial  position  or on the  general  course of its
         business,  lead to a  substantial  movement  in the price of its quoted
         securities;

6.1.5    (subject to its obligations at law or under the rules of the LSE or any
         other  regulatory  body to which it is  subject)  not at any time enter
         into any agreement or  arrangement or do or permit to be done any other
         act or thing which,  in any case,  would give rise to any obligation to
         make any announcement to a Regulatory Information Service in accordance
         with the AIM Rules or which may involve any increase in, or  obligation
         (whether  contingent  or  otherwise) to allot or grant options over any
         of, the share  capital of Newco  (other than the grant,  in  accordance
         with normal  practice,  or the exercise of, options under Newco's share
         options  schemes  as  currently  constitute,  adopted  as  part  of the
         Transaction)  without,  in any such case, having consulted Dawnay,  Day
         and given it reasonable time to consider and advise upon the matter;

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6.1.6    forward to  Dawnay,  Day  promptly,  copies of all proofs and drafts of
         documents   to  be  sent  to   Newco   shareholders,   and  all   press
         announcements,  and a copy of the final  version of such  documents and
         announcements prior to dispatch.

6.1.7    not adopt or give effect to any arrangements  (other than Newco's share
         option  schemes  as  currently  constituted,  adopted  as  part  of the
         Transaction)  which may have the  effect of  increasing  the  number of
         shares in the share  capital of Newco which may be acquired or disposed
         of by employees of Newco or any of its  subsidiaries  after the date of
         this Agreement;

6.1.8    obtain and comply  with  appropriate  advice in respect of all laws and
         regulations  that may be  applicable  to  Newco in the UK or any  other
         jurisdiction and to communicate that advice (as soon as practicable) to
         Dawnay,  Day if it is or may be relevant to the carrying out by Dawnay,
         Day of its services to you. Dawnay, Day will not incur any liability to
         you  where it has  acted  in good  faith  in  accordance  with any such
         advice; and

6.1.9    without prejudice to the foregoing paragraphs, provide Dawnay, Day with
         all  information  (whether  or  not  of  a  financial  nature)  as  may
         reasonably  request  from time to time in order to enable it to perform
         its obligations as nominated  adviser and/or  stockbroker to Newco both
         as regards their services  under this Agreement and their  obligations'
         responsibilities owed to the LSE.

6.2      In fulfilling our obligations as Newco's Nominated Adviser, Dawnay, Day
         shall be relying on the Client to ensure that any information  supplied
         to us by the  Client,  Newco or its  other  advisers  is  complete  and
         accurate in all material  respects and not misleading and provided in a
         timely manner with all information  concerning  Newco which it would be
         reasonable to expect would be relevant to us in performing our work.

6.3      Dawnay,   Day  shall  not  be  responsible  for  the   verification  of
         information  supplied  by or on behalf of Newco nor shall  Dawnay,  Day
         accept responsibility for the accuracy of such information.

6.4      For the  period of Dawnay,  Day's  appointment,  the Client  shall keep
         Dawnay, Day informed in respect of all material changes or developments
         concerning or affecting the financial and trading position or prospects
         of Newco, its subsidiaries and the Client.

6.5      The Client will  procure that Newco  complies  with all  statements  of
         intent   and    undertakings    contained   in   its   AIM    Admission
         Document/prospectus.

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6.6      For so long as DDCF is  Newco's  Nominated  Adviser,  the  Client  will
         procure  that Newco shall  notify and discuss  with DDCF in advance the
         following:-

6.6.1    any proposal for Newco to pay or make a dividend or other  distribution
         or to pass any dividend;

6.6.2    any proposal to change the capital structure or borrowing  requirements
         of Newco, any of its subsidiaries or the Client;

6.6.3    any proposal for  acquisitions  or  realisations  of material assets by
         Newco,  any of its  subsidiaries  or  the  Client  from  time  to  time
         otherwise than in the ordinary course of business;

6.6.4    any change in the  directors of Newco  including  any proposals for the
         appointment of any new director;

6.6.5    any decision to change the general  character or nature of the business
         of Newco, any of its subsidiaries or the Client;

6.6.6    particulars  of any proposed  dealings by the  directors (or any person
         connected with the directors) in any securities of Newco; and

6.6.7    any other  matter  relating to Newco,  any of its  subsidiaries  or the
         Client or the  business  affairs or officers of those  companies  which
         ought to be  brought to the  attention  of DDCF,  as Newco's  Nominated
         Adviser,  (being those matters which it would be reasonable to expect a
         prudent  director to bring to the  attention  of a company's  nominated
         adviser in the context of the company's  size and activities and of the
         AIM   Rules   and   of  the   nominated   adviser's   obligations   and
         responsibilities)

7.       UNDERTAKINGS BY THE CLIENT

7.1      The Client  undertakes  to Dawnay,  Day that it will procure that Newco
         will :

7.1.1    require  each of its  directors  and all other  relevant  employees  to
         comply  with  the  provisions  of a code  for  directors'  dealings  in
         securities  which is in or  substantially in the form of the Model code
         on directors'  dealings in  securities  which is set out in the listing
         rules  made by the  United  Kingdom  Listing  Authority  (the  "Listing
         Rules").

7.1.2    undertake to Dawnay, Day that it will use its reasonable  endeavours to
         comply with the AIM Rules,  the  Companies  Act 1985,  as amended,  and
         FSMA.

7.1.3    undertake  to  Dawnay,  Day that it shall  use its best  endeavours  to
         comply at all times with the  Combined  Code (as defined in the Listing
         Rules),  as the same may

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         be amended from time to time, subject to such modifications as may from
         time  to  time  be  resolved  by  agreement  with  Dawnay,  Day  to  be
         appropriate  for Newco,  taking into account its size and the nature of
         its  activities.  In particular,  Newco shall  establish and maintain a
         remuneration  committee, an audit committee and a nominations committee
         consisting in each case, unless agreed  otherwise,  wholly or mainly of
         non-executive directors, with powers and responsibilities substantially
         as contemplated by the Combined Code.

7.1.4    discuss with Dawnay,  Day variations from the Combined Code,  which its
         directors may consider are appropriate for Newco.

8.       GENERAL

8.1      The Client acknowledges that,:

8.1.1    save  as  required  by  the  AIM  Rules  or  FSMA  or by any  court  or
         governmental or regulatory body, neither any advice rendered by Dawnay,
         Day nor any  communication  from  Dawnay,  Day in  connection  with the
         services to be performed  by Dawnay,  Day under this  Agreement  may be
         quoted,  or referred  to, in any public  report,  document,  release or
         other  communication  by the  Client or Newco or by any  related  party
         without the prior written consent of DDCF or DDT; and

8.1.2    that Dawnay,  Day is not  responsible for providing any legal advice to
         Newco in  respect  of any  applicable  laws and  regulations  and Newco
         undertakes to obtain  appropriate  legal advice in respect of these and
         to  communicate  to us any such advice as is relevant  for the carrying
         out of our services under this Agreement.

8.2      This Agreement does not affect any other  agreement  which Dawnay,  Day
         has entered into with the Client in respect of any other transaction or
         matter,  nor any other  agreement  which Dawnay,  Day may enter into in
         connection with the Transaction or a Specific Assignment.

8.3      The  Client  acknowledges  that  by  entering  into or  performing  its
         obligations under this Agreement  Dawnay,  Day is not representing that
         it is  or  will  be  possible  for  the  Transaction  to  proceed.  The
         conclusions  which Dawnay,  Day may reach in respect of the Transaction
         may change.  Dawnay,  Day's obligation in this respect is to advise the
         Client and Newco as it sees fit, in what  Dawnay,  Day  perceives to be
         the Client's and Newco's best interests,  in the light of circumstances
         prevailing  at the time at which such  advice is given.  Likewise,  the
         Client is not representing  that it is or will be possible or advisable
         for the Transaction to proceed.

8.4      The parties  hereto  shall not be  entitled  to assign  this  Agreement
         without the prior  written  consent of the other  parties (such consent
         not to be unreasonably withheld or delayed).

<PAGE>

9.       TERMS OF BUSINESS

9.1      Dawnay, Day will treat you, the Client, as an Intermediate  Customer in
         accordance  with the rules of the  Financial  Services  Authority.  Our
         standard terms of business for Intermediate Customers,  which form part
         of our agreement with you, are attached.

9.2      Prior to  Admission,  Dawnay,  Day will enter into certain  agreements,
         namely a placing agreement,  a nominated adviser agreement and a broker
         agreement, with the Client, Newco and the directors of those companies.
         Until that time, this Agreement and the enclosed  standard terms,  when
         countersigned,  represent our contract with you. No person who is not a
         party to this contract shall have any right to enforce any terms of it,
         whether or not any of the terms expressly (or by implication purport to
         confer any benefit on such persons).

9.3      Prior to entering into the further agreements  referred to in paragraph
         9.2 above, in the event of any inconsistency  between the provisions in
         this Agreement and those in our standard terms,  the provisions in this
         Agreement shall prevail.

10       TERMINATION

10.1     The  appointment  of DDCF and DDT shall  continue  for at least  twelve
         months from the date of this Agreement or, if earlier, until terminated
         in accordance with the provisions of paragraph 10.2 or 10.3 below.

10.2     The Client  acknowledges  that each of DDCF and DDT may  terminate  its
         appointment hereunder:

10.2.1   forthwith by service of a notice in writing on the Client or, following
         Admission,  on  Newco  in the  event  of any  material  breach  of this
         Agreement  by the  Client  or Newco (as the case may be) if DDCF or DDT
         (as the case may be) has  notified  the  Client or Newco in  writing of
         such breach and the Client or Newco,  in the event of the breach  being
         (in  the  reasonable  opinion  of  DDCF or  DDT,  as the  case  may be)
         remediable,  fails to remedy it to the reasonable  satisfaction of DDCF
         or DDT, as the case, may be within 14 days after the notification;

10.2.2   forthwith  by serving a notice in  writing on the Client or,  following
         Admission,  on Newco in the event that, in the sole  discretion of DDCF
         or DDT, Newco ceases to be a suitable company for AIM;

10.2.3   without  prejudice to its rights in paragraphs 10.2.1 and 10.2.2 above,
         by giving the Client  or,  following  Admission,  Newco  three  months'
         notice in writing (it is acknowledged by the Client that the purpose of
         this clause is, INTER ALIA, to

<PAGE>

         provide  Dawnay,  Day  with  sufficient  leverage  as to  enable  it to
         implement  its  regulatory  and other duties as  nominated  adviser and
         broker to Newco).

10.3     The Client or, following Admission, Newco may terminate the appointment
         of DDCF or DDT hereunder:

10.3.1   forthwith  if DDCF or DDT is in material  breach of this  Agreement  or
         materially  fails to carry out its  obligations  under  this  Agreement
         other  than as a result  of the  actions  of the  Client,  Newco or any
         subsidiary  of the Client or factors  outside its control if the Client
         or Newco (as the case may be) has notified DDCF or DDT (as the case may
         be) of such material breach or material failure and DDCF or DDT (as the
         case may be) has, in the event of the breach or material  failure being
         (in the reasonable opinion of the Client or Newco)  remediable,  failed
         to remedy it to the reasonable  satisfaction of the Client or Newco (as
         the case may be) within 14 days after such notification;

10.3.2   without  prejudice to its rights in paragraph  10.3.1 above,  by giving
         DDCF or DDT (as the case may be) not less  than one  month's  notice in
         writing,  such  notice to expire at any time after 12 months  following
         the date of this Agreement.

10.4     The Client or, following Admission,  Newco should make every reasonable
         effort to notify Dawnay, Day sufficiently in advance for Dawnay, Day to
         make  appropriate  comments on any reasons for resignation or dismissal
         which the  Client or Newco (as the case may be)  intends  to provide to
         any regulatory authority or make public in any way.

10.5     Termination  shall not affect any accrued  legal rights or  obligations
         which may have already accrued or any representations, confirmations or
         indemnities  given  by  you  nor  will  it  affect  the  provisions  of
         paragraphs 3 and 4 of this  Agreement or  paragraphs  2, 4, 5, 8 and 12
         (INTERMEDIATE  CUSTOMER) of the attached  standard terms and conditions
         of business, which will remain in full force and effect.

<PAGE>

SIGNATURES:

This Agreement is made under English law and is signed by the Parties hereto

FOR AND ON BEHALF OF                                    For and on behalf of
DAWNAY, DAY CORPORATE                                   DAWNAY, DAY BROKERS
FINANCE LIMITED                                         LIMITED

/s/                                                     /s/
.........................                                ........................
Director                                                Director

FOR AND ON BEHALF OF
THERMODYNETICS INC

/s/                                                     /s/
............................                             ........................
Director                                                Director

Dated March 10, 2006

<PAGE>

                                   DAWNAY, DAY

                     INTERMEDIATE CUSTOMER TERMS OF BUSINESS

These Terms of Business ("the Terms of Business"), should be read in conjunction
with  the  Appointment  Agreement  ("the  Mandate  Agreement"),   together  they
constitute  "the Mandate" and set out the specific  terms on which  Dawnay,  Day
Corporate Finance Limited ("DDCF") and Dawnay,  Day Townsley Limited ("DDT"),  a
division  of Dawnay,  Day  Brokers  Limited  ("DDB"),  together  referred  to as
"Dawnay, Day", will respectively provide corporate finance and corporate broking
services to you ("the Customer").  "We" and "us" refers to Dawnay,  Day and "the
Customer" and "you" refers to the Client.

DDCF and DDB are  authorised and regulated by the Financial  Services  Authority
("FSA") and on the basis of the information  that you have provided to us, or we
are otherwise aware of, we have  categorised you as an Intermediate  Customer in
accordance  with  FSA  Rules.  Please  let us know  if you  disagree  with  this
categorisation or if you wish to be dealt with on a different basis.

1.     INTRODUCTION

       1.1    The liabilities of Dawnay, Day shall be joint and several.  If the
              Customer  comprises more than one person,  then the liabilities of
              the  Customer  under or in relation to the Mandate  shall be joint
              and several.

       1.2    In engaging  Dawnay,  Day,  you  represent to us that you have the
              full  power  and  authority  to do so and are doing so on your own
              behalf and not for or on behalf of any third party.

       1.3    Before engaging Dawnay, Day, you should familiarise  yourself with
              these  Terms  of  Business  and the  Mandate  Agreement  and  seek
              clarification  from us in the event that you should have any doubt
              as to their meaning or effect.

       1.4    No  variation  to the  terms of the  Mandate,  as set out in these
              Terms of Business  and the Mandate  Agreement,  will be  effective
              unless agreed between us in writing.

       1.5    The Mandate will come into immediate  effect upon our receipt of a
              signed copy of the Mandate Agreement from you.

2.     INFORMATION, CONFIDENTIALITY, DOCUMENTS AND ANNOUNCEMENTS

       2.1    You undertake to provide Dawnay,  Day, promptly upon request,  all
              such information as we may reasonably  require for the performance
              of our  duties  to you or which  may  reasonably  be  regarded  as
              relevant for the  performance of those duties and with full access
              to all appropriate directors, officers and employees of your group
              and  its  advisers.  You are  responsible  for  the  accuracy  and
              completeness  both of any  information  provided  to us and of any
              information  regarding you or your business and affairs  contained
              in any  document in which we are  involved.  We do not owe you any
              obligation to verify such information.  You undertake to advise us
              immediately  upon your becoming aware that any  information is, or
              has become, inaccurate or misleading.

       2.2    We  recognise  the  sensitivity  of any  information  that you may
              provide to us and shall treat such information as confidential. In
              return,  you shall  treat all advice and  information  provided by
              Dawnay, Day to you as being confidential.  The obligations of both
              and Dawnay,  Day and the Customer  under this paragraph 2.2, shall
              survive  the  termination  of the  Mandate and shall be subject to
              paragraph 2.3 below.

       2.3    Nothing in paragraph 2.2 above shall prevent disclosure by Dawnay,
              Day to its or your professional advisers engaged in the matters to
              which the Mandate relates or to the extent that:

              (i)    we are required to do so by law or any regulatory authority
                     or court or tribunal  (in the UK or  elsewhere)  subject to
                     any   restrictions   on   disclosure   by   means   of  the
                     insider-trading  laws and  rules  regulated  by the  United
                     States  Securities  and Exchange  Commission,  and further,
                     provided  you have been given  sufficient  prior notice and
                     you  have  had an  opportunity  to  limit  such  disclosure
                     through discussion with cause or otherwise OR

              (ii)   we reasonably  believe,  in our absolute  discretion,  that
                     such   disclosure   is   necessary   or  desirable  in  the
                     performance  of our  function  or in your  interests  or in
                     relation  to the  enforcement  of rights  under the Mandate
                     subject to any  restrictions  on disclosure by means of the
                     insider-trading  laws and  rules  regulated  by the  United
                     States  Securities  and Exchange  Commission,  and further,
                     provided  you have been given  sufficient  prior notice and
                     you  have  had an  opportunity  to  limit  such  disclosure
                     through discussion with cause or otherwise ; OR

              (iii)  the information  disclosed is, or subsequently  comes into,
                     the public domain; OR

              (iv)   the relevant  information  was  lawfully in our  possession
                     before  you  disclosed  it to us or was or is  subsequently
                     received  from a third party who at the time,  so far as is
                     known  to   Dawnay,   Day  is  or  was  not  bound  by  any
                     restrictions on disclosure to a third party.

       2.4    Any advice or opinion,  written or oral,  provided by Dawnay,  Day
              pursuant to the Mandate  will be solely for your  information  and
              assistance  in  connection  with  the  Mandate  and  must  be kept
              confidential  by you  subject to any legally  required  disclosure
              obligations. It is not to be used, circulated, quoted or otherwise
              referred to or publicly  filed or disclosed  for any other purpose
              to any third  party,  except  in each case with the prior  written
              consent of Dawnay Day. Any  circulation or disclosure  within your
              Group  shall be  strictly  limited to the  members of the Board of
              Directors and senior management and any professional advisers.

                                     1 of 1

<PAGE>
       2.5    All  property  rights  over   correspondence,   papers  and  other
              documents within the custody, possession or control of Dawnay, Day
              relating to any services provided to you shall vest exclusively in
              Dawnay,  Day except for  originals of such  documents  provided to
              Dawnay,  Day by you or on your  behalf  which shall be returned to
              you  should  you so  requested  upon  termination  of the  Mandate
              (although  we shall be  entitled  to make and retain  confidential
              copies  of  such  documents).  For the  avoidance  of  doubt,  the
              provisions of this  paragraph  shall prevail over any  conflicting
              contractual  provision  entered  into  prior  to the  date  of the
              Mandate.

3.     CONFLICTS OF INTEREST

       3.1    DDCF and DDT are part of a group of companies  (the  "Dawnay,  Day
              Group").  Because  of  potential  conflicts  of  interest  and  to
              preserve confidentiality of customer information,  the Dawnay, Day
              Group operates rules and  procedures  (commonly  known as "Chinese
              Walls") to ensure the confidentiality of information.

       3.2    You  acknowledge  and agree  provided we maintain all  information
              provided  by  or  with   respect  to  you  or  your   business  as
              confidential that we may provide our services to you:

              (i)    notwithstanding   that   another   connected   company   or
                     division/part  of  DDCF  or DDT  (or a  customer  of such a
                     company)  might  be  regarded  as  having  interests  which
                     conflict  with  our  mandate  with you  (including  but not
                     limited to effecting  transactions or holding positions for
                     its own  account or those of  customers  in  securities  or
                     related  investments which are the subject of or related to
                     or affected by the Mandate); AND

              (ii)   only on the  basis of  information  known to the  personnel
                     within DDCF or DDT who are  responsible  for advising  you;
                     AND

              (iii)  without being required or obliged to have any regard to any
                     other information within the Dawnay, Day Group; AND

              (iv)   without being  required to disclose to you or the employees
                     advising   you  nor  to  make  use  for  your  benefit  any
                     information  known to  Dawnay,  Day that  belongs  to or is
                     confidential  to another client or to another member of the
                     Dawnay, Day Group or that belongs to and is confidential to
                     DDCF  or DDT  and  relates  to  some  other  aspect  of its
                     business.

       3.3    If we become aware that we, a connected  company,  or any director
              or employee has any interest in any proposed transaction which may
              conflict to a material  extent with the Mandate,  then we will, as
              soon as practicable either:

              (i)    disclose  that  such a  conflict  has  arisen;  OR if  such
                     disclosure would, in our reasonable opinion, be contrary to
                     our obligations to a third party or otherwise be unethical,

              (ii)   cease to provide services to you; OR

              (iii)  take other steps as we  reasonably  consider to be fair and
                     reasonable in the circumstances.

              Dawnay,  Day's directors and employees are also required to comply
              with  a  "Policy  of  Independence"  and  to  disregard  any  such
              interest,   relationship  or  arrangement  when  advising  you  or
              arranging transactions for you.

4.     LIMITATION ON DAWNAY, DAY'S DUTIES

       4.1    Save to the extent (if any) expressly  agreed in writing with you,
              we shall not have any obligation or other  responsibility to carry
              out any financial or other investigation or due diligence into any
              corporate  or other entity which is involved in or relevant to the
              Mandate including,  without limitation,  any prospective target or
              investee company or prospective purchaser.

       4.2    Dawnay,  Day accepts no liability or other  responsibility  to you
              if, in the  course of the  performance  of our  duties to you,  we
              reveal  to a  prospective  financier  or  other  third  party  the
              existence of a potential transaction or other business opportunity
              and  such   financier  or  third  party  (or  connected   parties)
              subsequently  pursues  and/or  secures such  transaction  or other
              opportunity.

       4.3    Dawnay,  Day has no duties or  obligations to you other than those
              expressly and specifically set out in the terms of the Mandate and
              in other written correspondence with you. Dawnay, Day shall not be
              liable  to you  except  in  respect  of its  negligence  or wilful
              default in the  performance of such duties and obligations and you
              shall make no claim against  Dawnay,  Day or any of its directors,
              officers,  members, employees or agents ("Indemnified Persons") to
              recover  any loss or damage  which you may  suffer by reason of or
              arising out of anything  done or omitted to be done in relation to
              the provision of services by Dawnay,  Day unless and to the extent
              that such claim is made against Dawnay,  Day alone and arises as a
              result of its negligence or wilful  default in the  performance of
              such duties and obligations.

       4.4    However,  these  provisions shall not exclude or restrict any duty
              or  liability  which we have in relation to you under the rules of
              FSA or any  liability  which  we may  incur  under  the  Financial
              Services  and Markets Act 2000  ("FSMA") or those rules in respect
              of breach of any such duty.

5.     CUSTOMER INDEMNITY

       5.1    You hereby irrevocably and unconditionally  agree to indemnify and
              hold harmless each of DDT and DDCF , for itself and as trustee for
              each of the other Indemnified Persons (as defined in paragraph 4.3
              above) and any  connected  company and the directors and employees
              of any connected company,  (whether before or after

                                     2 of 2

<PAGE>

              termination  of the Mandate)  from and against any and all claims,
              actions, demands,  liabilities,  proceedings or judgements brought
              or made against us and all losses, charges and expenses (including
              but not limited to fees and expenses  incurred in connection  with
              the  investigation,  preparation  for or defence  of any  inquiry,
              inspection or  investigation  or any pending or threatened  claim,
              action,  litigation or proceedings)  which any of us may suffer or
              incur and which in any case are directly or indirectly  occasioned
              by or as a result from or are  attributable  to  anything  done or
              omitted to be done in connection with the provision of services to
              you by us, or any act or omission  (including without  limitation,
              the provision of information which is inaccurate or misleading) by
              you.

       5.2    However,  this indemnity  shall not apply to any loss or liability
              to the extent it arises or results from any contravention by us of
              the  rules  of the FSA or of the FSMA or from  any  negligence  or
              wilful default on our part.

       5.3    References in this section to "us" or "our" include  references to
              Dawnay, Day, and each of the other Indemnified Persons (as defined
              in  paragraph  4.3  above)  and  any  connected  company  and  the
              directors and employees of any connected company.

6.       AUTHORISATION

       6.1    Dawnay,  Day is  authorised  by you to do  anything on your behalf
              that Dawnay, Day in its absolute discretion considers necessary or
              desirable in order (i) to carry out the Mandate  which may include
              acting  through  approved  agents or sub-agents and (ii) to comply
              with any applicable legal or regulatory requirements.

       6.2    You authorise Dawnay, Day to rely on any instructions,  notices or
              requests  (whether  in writing or not) given (or  appearing  to be
              given) by any  director  or  employee  of yours who is  reasonably
              believed  by  Dawnay,  Day to be  authorised  by you to give  such
              instructions, notices or requests.

7.     FSA CLIENT MONEY

       7.1    Dawnay,  Day does not  hold  Client  Money  and is  therefore  not
              authorised to and shall not hold or receive monies on your behalf.

       7.2    The  Customer  will  arrange  for an  account  or  accounts  to be
              established with one or more approved banks in order for monies to
              be held or received in  relation to the  Transaction  or any other
              transaction contemplated by the Mandate.

8.           GENERAL PROVISIONS

       8.1    The basis of our charges is as set out in the Mandate Agreement.

       8.2    You undertake to comply with and abide by all applicable statutes,
              rules, regulations and requirements,  including without limitation
              the City Code on Take-overs and Mergers.

       8.3    The Mandate  Agreement,  when  countersigned,  and these  standard
              terms  represent  our  contract  with you.  No person who is not a
              party to this  contract  shall have any right to enforce any terms
              of  it,  whether  or  not  any  of  the  terms  expressly  (or  by
              implication)  purport to confer any benefit on such  persons.  You
              will not pursue any claims  against  Dawnay,  Day's  employees  or
              persons  engaged by  Dawnay,  Day under a  contract  for  services
              personally and acknowledge  that such persons are entitled to rely
              on the  Contracts  (Rights  of  Third  Parties)  Act as a means of
              preventing such claims being brought against them.

       8.5    You agree that:

              (i)    Dawnay, Day may require confirmation or evidence to support
                     information  contained  in, or omitted  from,  any document
                     Dawnay, Day is required to approve,  or in respect of which
                     you may incur any  liability to third  parties,  whether or
                     not you accept full  responsibility for the preparation and
                     contents of the document;

              (ii)   Dawnay,  Day may refuse to issue,  consent to the issue of,
                     or  approve  any  document,  or  require  you to  cease  to
                     distribute any document, if at any time Dawnay, Day becomes
                     aware  of  information  that  in its  opinion  renders  the
                     document  untrue,  inaccurate or misleading in any material
                     respect;

              (iii)  without  detracting  from Dawnay,  Day's right to make such
                     enquiries as Dawnay,  Day may consider  appropriate  in the
                     discharge of its obligations  hereunder,  shall be entitled
                     to  rely  upon  all  information  supplied  by you or  your
                     advisers  and shall not in any respect be  responsible  for
                     the accuracy or completeness  of, or have any obligation to
                     verify, the same; and

              (iv)   any documents provided to us in final form will be approved
                     by  your  Board,   and  your   directors   will  be  solely
                     responsible for them.

       8.6    Paragraph  headings  are  used in  these  Terms  of  Business  for
              convenience only and shall not affect their construction.

                                     3 of 3

<PAGE>

9.     TERMINATION

       9.1    Subject to the specific  termination  terms set out in the Mandate
              Agreement:

              (i)    this Mandate can be  terminated  by either party giving one
                     month's written notice to the other.

              (ii)   if within 12 months of the termination of the Mandate,  you
                     enter into any transactions  initiated by us or referred to
                     in the Mandate Agreement,  you hereby agree to pay us a fee
                     calculated in accordance with the provisions of the Mandate
                     Agreement.

10.       COMPLAINTS

       If you have any  complaints  about our services  under this Mandate,  you
       should  write to the "Group  Compliance  Officer" of Dawnay,  Day at 9-11
       Grosvenor  Gardens,  London,  SW1W 0BD. The Group  Compliance  Officer is
       responsible   for   investigating   and  resolving  any  complaints  from
       Customers.  We will provide you with  details of our internal  Complaints
       Procedure  upon request,  or  automatically  in the event that you make a
       complaint  that is not  satisfactorily  resolved  within one business day
       after receipt of your complaint.

11.       COMPENSATION

         We are covered by the Financial Services  Compensation  Scheme. You may
         be  entitled  to  compensation  from the  scheme if we cannot  meet our
         obligations.  This  depends  on the  nature  of the  claimant,  type of
         business  and the  circumstances  of the claim.  Eligible  claimants in
         respect of most types of  investment  business  are covered for 100% of
         the  first  (pound)30,000  and  90% of the  next  (pound)20,000  so the
         maximum  compensation  is  (pound)48,000.   Further  information  about
         compensation  arrangements  is available  from the  Financial  Services
         Compensation Scheme.

12.      GOVERNING LAW AND JURISDICTION

       These Terms of Business and the Mandate  Agreement  shall be construed in
       accordance   with  and  governed  by  English  Law.  You  submit  to  the
       non-exclusive  jurisdiction of the English  Courts.  If you do not have a
       place of  business  in  England  and you do not  appoint an agent for the
       service of  process,  it is hereby  agreed that in default of your making
       such an  appointment,  you hereby appoint our associated  company Dawnay,
       Day International Limited as your agent for service of process.

                                     4 of 4SERIES B 8% CONVERTIBLE PREFERRED STOCK

                          ELITE PHARMACEUTICALS , INC.

              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

65,000,000 SHARES OF COMMON STOCK                        SEE REVERSE SIDE FOR
PAR VALUE $0.01 PER SHARE                                CERTAIN DEFINITIONS AND
4,483,442 SHARES OF PREFERRED STOCK                      LEGENDS
PAR VALUE $0.01 PER SHARE

       FULLY PAID AND NON-ASSESSABLE SHARES OF THE SERIES B 8% CONVERTIBLE
                     PREFERRED STOCK , $0.01 PAR VALUE, OF

ELITE PHARMACEUTICALS, INC.        JERSEY TRANSFER AND TRUST CO
                                   201 BLOOMFIELD AVE.      AUTHORIZED SIGNATURE
                                   VERONA, NJ 07044            TRANSFER AGENT

            SECRETARY                                       PRESIDENT

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