Document:

EXECUTIVE EMPLOYMENT AGREEMENT 

     THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into, effective as of the date signed by both parties, by and between Williams Controls, Inc., a Delaware corporation (the “Company”), and Patrick W. Cavanagh (“Executive”). 

BACKGROUND 

     A. Executive has many years of experience in the truck parts industry, and the Company desires to retain Executive as President and Chief Executive Officer on the terms described in this Agreement. 

     B. Executive desires to accept employment with the Company on the terms described in this Agreement. 

     C. The Company and Executive anticipate that Executive’s hire date will be October 4, 2004, or such sooner date as agreed upon by Executive and the Company’s Chairman of the Board. 

AGREEMENT 

     In consideration of the provisions of this Agreement, the Company and Executive agree as follows: 

I. DUTIES 

     1.1 Title and Responsibilities. Executive shall serve as President and Chief Executive Officer of the Company, with the responsibilities and duties typical of that position, as well as such other responsibilities and duties as may be assigned to him from time to time by the Company’s Board of Directors (the “Board”). Executive shall devote his best efforts and full business time to the business and interests of the Company.

     1.2 Company Policies. Executive agrees to perform his job consistent with all Company policies and ethical business practices.

II. COMPENSATION 

     2.1 Base Salary. The Company shall pay Executive a base salary (“Base Salary”) of $240,000 per year, payable in installments according to the Company’s usual payroll practices. Up to 7% of Executive’s Base Salary may be paid, in the Company’s complete discretion, in the form of the Company’s common stock (the “Common Stock”), which payment will occur in a single transfer of stock near the end of the second quarter of the Company’s fiscal year, with the shares of Common Stock valued based on the average trading price for the 30 days immediately preceding payment. In addition, commencing September 30, 2005, the Board will annually review Executive’s Base Salary. 

     2.2 Annual Bonus. At the end of each full fiscal year of the Company, Executive will be eligible for bonus compensation, which will be calculated in three stages and in the aggregate referred to as the “Annual Bonus.” The bonus potential described below starts October 1, 2004, applicable for the 2005 fiscal year of the Company. 

          (i) First Stage. As soon as practicable following the commencement of Executive’s employment with the Company, Executive and members of the Board will agree on objective performance targets, the accomplishment of which will entitle Executive to a bonus payment of 60% of his Base Salary. This is the first stage of the Annual Bonus. The parties intend that similar objective targets will be agreed to around the start of each fiscal year of the Company, which goals will apply toward calculating the first stage of the Annual Bonus for that fiscal year.

          (ii) Second Stage. Executive and members of the Board will also agree on factors indicative of an extraordinary performance, the accomplishment of which will make Executive eligible for an increase in his annual bonus up to an amount of 40% of his Base Salary. The parties acknowledge that while the first stage of the Annual Bonus (up to 60% of Base Salary) will be based on yearly Company performance, the second stage of the Annual Bonus (up to an additional 40% of Base Salary) will include other measures that the Board and Executive deem important for the Company’s success.

          (iii) Third Stage. Executive’s Annual Bonus may be increased by a third stage, equal to an additional 50% of his Base Salary, based on the Board’s assessment of the achievement of growth and improvement objectives established by the Board at the start of the Company’s fiscal year. Based on all three stages, the Annual Bonus may reach, in the aggregate, a total Annual Bonus package of 150% of Executive’s Base Salary.

          (iv) Company Stock Component. To the extent the Annual Bonus exceeds, 100% of Executive’s Base Salary for any fiscal year, the Board may, in its sole discretion, satisfy its payment obligations for any amounts over 100% of Base Salary by paying in the form of cash or in shares of Common Stock, with the shares of Common Stock valued based on the average trading price for the 30 days immediately preceding payment of the Annual Bonus. Payment of the Annual Bonus, if any, shall be paid within 90 days following the close of the Company’s fiscal year. 

     2.3 Stock Options. In partial consideration of Executive’s execution of this Agreement, Executive shall receive options for 1,000,000 shares of the Company’s Common Stock under any stock option plan adopted by the Company from time to time. The exercise price associated with each option granted to Executive shall be the greater of $1.00 per share or the average price of the Common Stock based on the average trading price of the Common Stock for the 30 days immediately preceding Executive’s hire date. The options shall be nonqualified stock options with a term of 10 years. The options will vest and become exercisable based on a gradual vesting schedule, with 20% of the options becoming vested for each 12 months of employment that Executive completes with the Company, with the options becoming fully vested upon a “Sales
Event,” as defined below, or in the event that there is a triggering of any “drag-along” or “tag-along” rights associated with shares of Common Stock owned by Executive. 

The option agreement issued to Executive will also include any accelerated vesting rights held by other executives of the Company. The parties acknowledge that the Company is engaged in a recapitalization transaction, prior to which, and for a short time afterward, the Company will be unable to issue stock options to Executive. Once options are issued, the options shall reflect in the corresponding vesting schedule that vesting starts on Executive’s hire date, and not with the date on which the options are ultimately granted. In addition, the parties acknowledge that if the fair market value of the stock increases, the exercise price associated with Executive’s stock options shall nevertheless be the greater of $1.00 per share or the average sale price for a share of Common Stock on the Executive’s hire date, even if that price is less than the value of Common Stock on the date the options are granted. 

     For purposes of this Agreement, a “Sales Event” shall mean (i) a sale of all or substantially all of the Company’s assets, (ii) a sale (or series of related sales) of the Company’s stock after which voting control of the Company is held by persons who were not shareholders of the Company prior to the sale, if in connection with the sale, or thereafter, Executive is terminated for reasons other than Cause or leaves the Company for Good Reason (as such terms are defined below), or (iii) a tender offer, merger, consolidation, reorganization or other similar event that shifts voting control of the Company (or any successor entity) to persons who were not shareholders of the Company prior to the transaction. 

     2.4 Other Benefits. 

          (i) The Company shall provide Executive with any additional employee benefits generally extended to other full-time salaried employees of the Company, on the same terms generally available to the Company’s full-time salaried employees. In addition, in conjunction with Executive’s potentially variable start date, as expressed in Section C. of the Background section of this Agreement, if Executive is required to elect COBRA coverage under his current employer’s group health plan before becoming eligible for coverage under the Company’s group health plan, the Company will reimburse Executive for the COBRA premium amount or pay the amount for him.

          (ii) The Company shall pay or reimburse Executive for all travel and entertainment expenses incurred by Executive in connection with his duties on behalf of the Company, subject to proper documentation and the reasonable approval of the Company.

          (iii) Executive will be eligible for enhanced physicals at the Mayo Clinic (or another comparable facility of his choosing), at the expense of the Company, similar to the program offered by Executive’s former employer. 

          (iv) Executive will receive “Personal Time Off” (or “PTO”) of six weeks upon commencement of employment, and will subsequently accrue additional PTO at a monthly rate equivalent to six weeks per year. The parties agree that to the extent possible, Executive will be reasonably available during vacation times to receive calls, emails, etc., and to conduct business as may reasonably be required. 

          (v) As a signing bonus, and to compensate Executive for possibly missing a retention incentive and fiscal 2004 bonus with his current employer, the Company shall pay Executive a one-time bonus in late November 2004 of $60,000, paid in an equivalent number of shares of the Company’s Common Stock (based on the average trading price for the 30 days immediately preceding payment).  

If his current employer pays this 2004 bonus, then the Company shall not be obligated to pay the $60,000. As a further one-time bonus in lieu of Executive receiving a retention bonus from his current employer, the Company will pay Executive $200,000 as follows: $100,000 in Common Stock (with the value measured as described above) and $100,000 in cash if Executive’s current employer pays him his 2004 bonus; or $50,000 in Common Stock and $150,000 in cash if his current employer does not pay his 2004 bonus. The Company will pay these amounts at approximately the time that Executive would have received his retention bonus award from his current employer had he remained employed, provided that none of these bonuses will be paid if, prior to the time of payment by the Company, (a) Executive has been terminated by the Company for Cause (as defined below), or (b) Executive has terminated his employment for reasons other than death, disability or grounds that
constitute Good Reason (as such terms are defined below).

          (vi) In addition, and in connection with the bonus payments described above, Executive has agreed to purchase $25,000 worth of Common Stock on the open market, during both the first and second year of his employment with the Company. 

          (vii) The Company will assist Executive in relocating to the Portland, Oregon area, with the specific terms of the reimbursement to match as closely as feasible the policies of Executive’s present employer. The Company will not necessarily use a third party in this assistance as is the policy of Executive’s current employer. The details will be worked out between Executive, the Company’s Chairman of the Board and the Company’s CFO.

III. TERMINATION OF EMPLOYMENT 

     3.1 By Executive. 

          (i) Executive may resign his employment with the Company upon no less than 30 days’ written notice to the Company. The Company may elect to terminate Executive’s employment immediately upon receiving notice of his resignation and, in such case, shall pay Executive his Base Salary for the 30 day notice period in addition to any Base Salary earned by Executive prior to his termination. Other than remaining amounts of Base Salary, the Company shall not owe Executive any additional compensation following his resignation, except as provided in Section 2.4(v), and provided further that if Executive is employed on the last day of a fiscal year of the Company, and would otherwise be due an Annual Bonus, as described in Section 2.2, he shall be paid the Annual Bonus, even if he terminates employment prior to the actual payment of the bonus, in
which case the Company will pay him his Annual Bonus at the time it would have normally paid. 

          (ii) Executive’s resignation shall be deemed to be for “Good Reason” if the resignation is in connection with (a) an assignment of duties inconsistent with respect to his position as President and Chief Executive Officer or any other action by the Board that results in a decrease of his position, authority, duties or responsibilities, excluding an isolated and inadvertent action not taken in bad faith and that is remedied by the Board within 20 days of Executive’s written notice of the problem; (b) any decrease in Executive’s Base Salary or other benefits, other than an isolated and inadvertent failure not occurring in bad faith, which the Company remedies within 20 days of Executive’s written notice of the decrease, or any material decrease in qualified retirement plan or health insurance benefits in conjunction with
a plan change needed to enable the plans to satisfy IRS requirements or bring the benefits in line with benefits available to executives of an acquiring entity, or any general reduction in retirement or health plan benefits applicable to the workforce as a whole;  

(c) any material breach of this Agreement by the Company, which breach is not cured within 20 days of Executive’s written notice of the breach; or (d) any requirement by the Company that Executive relocate more than 50 miles away from the Company’s offices in Portland, Oregon, excluding reasonable travel required by the Company for business purposes. 

     3.2 By the Company. The Company may terminate Executive’s employment immediately and without advance notice for Cause. As used herein, “Cause” means: (a) a material breach of the provisions of this Agreement by the Executive; (b) personal or professional conduct of Executive, which, in the reasonable and good faith judgment of the Board, materially injures or tends to materially injure the reputation of the Company or otherwise materially adversely affects the business interests of the Company, with such conduct including, but is not limited to, dishonesty, substance abuse, or arrest or indictment for or conviction of a felony; (c) material breach by Executive of any statutory, common law or other duty or obligation to the Company, including Executive’s duty of loyalty or confidentiality to the Company, which breach is not
remedied within 20 days of the Company’s written notice to Executive; or (d) conduct that constitutes willful, wanton or grossly negligent malperformance of Executive’s duties, which conduct, in the reasonable and good faith judgment of the Board, materially adversely affects the business interests of the Company, which conduct is not remedied within 20 days of the Company’s written notice to Executive. If Executive’s employment is terminated for Cause, the Company shall have no obligation to pay Executive any further compensation, including unpaid bonuses or benefits of any kind, except Base Salary earned by Executive prior to his termination; provided, however, if Executive is employed on the last day of a fiscal year of the Company, and would otherwise be due an Annual Bonus, as described in Section 2.2, he shall be paid the Annual Bonus, even if he is terminated prior to the actual payment of the bonus, including a termination for Cause, unless the Board reasonably determines
in good faith that elements giving rise to a termination for Cause occurred during the fiscal year on which the Annual Bonus is based, in which case the Annual Bonus shall not be paid. 

     3.3 Disability of Executive. If Executive is unable to perform the essential functions of his position with or without reasonable accommodation for a period of 180 consecutive days, the Company may elect to terminate Executive’s employment, which termination shall be treated as a termination not for Cause. 

     3.4 Death of Executive. This Agreement shall terminate automatically upon Executive’s death, which termination shall be considered without Cause. 

     3.5 Effect of Termination. After termination of Executive’s employment for any reason, the Restrictive Covenants contained in Article IV of this Agreement shall remain in full force and effect, together with the Company’s right to enforce such Restrictive Covenants and receive damages in the event of a breach of any such Restrictive Covenants. 

     3.6 Severance Pay. If within one year of Executive’s date of hire his employment is terminated by the Company for reasons other than Cause, or Executive terminates for Good Reason, the Company shall pay Executive a severance payment equal to two times his Base Salary. If the Company terminates Executive’s employment for reasons other than Cause, or Executive terminates his employment for Good Reason, after the first anniversary of his hire date, the Company shall pay Executive a severance payment equal to one and one half times his Base Salary. If payment is triggered under this Section 3.6, the Company will also pay the COBRA premium associated with continued health insurance for Executive during the applicable COBRA continuation period. Notwithstanding the foregoing provisions of this Section 3.6, in the event of a Sales Event in
which Executive obtains an offer for reasonably equivalent base pay, standard fringe benefits and a reasonable bonus potential for a minimum 18-month period for the position offered from the purchaser of the Company, the Company will not pay any severance; provided, however, that if Executive decides not to accept the offer after it is presented to him in writing, and after having at least 30 days to consider the offer, the Company will pay severance to Executive of one-year’s Base Salary plus an amount equal to his COBRA premium for 18 months. 

     3.7 Suit by Current Employer. The parties acknowledge that Executive has a non-competition agreement with his current employer. The Company agrees that if Executive’s current employer successfully obtains a restraining order or an injunction that prohibits Executive from working for the Company for the period described in the agreement with his current employer (or a shorter period), the Company will continue Executive’s Base Salary and medical benefits during the period of the restraining order or injunction, as well as the bonus amounts described in Section 2.4(v), and the court-required cessation of employment shall not be viewed as a termination for purposes of assessing Cause or Good Reason, and similarly shall not entitle Executive to severance benefits under Section 3.6. The Company also agrees that if Executive’s current
employer initiates a suit to enforce the non-compete agreement, the Company will pay Executive’s legal costs to defend the action. The Company will also hold the President and Chief Executive Officer position open for Executive during any time he is prohibited, by virtue of an injunction, from working for the Company. 

IV. RESTRICTIVE COVENANTS 

     4.1 Executive’s Acknowledgment. Executive acknowledges that: (a) he is accepting this continued employment with the understanding and agreement that he will be bound by this covenant not to compete; (b) he will continue to occupy a position of trust and confidence with the Company through which he will become even more intimately familiar with the Company’s business and marketing plans, strategy, financial information, trade secrets and other confidential information that is of great potential value to the Company’s competitors; (c) the Company solicits, generates and/or conducts business on a national level; and (d) Executive’s agreement to the restrictive covenants contained in this Article IV is a condition of his employment with the Company. 

     4.2 Covenant Not to Compete. Executive hereby agrees that so long as he is employed by the Company in any capacity and for one year following the termination of his employment with the Company (the “Restricted Period”), he will not, directly or indirectly, as employee, agent, consultant, member, stockholder, director, co-partner or in any other individual or representative capacity, own, operate, manage, control, engage in, invest in or participate in any manner in, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation or entity), or otherwise assist any person or entity (other than the Company) that engages in or owns, invests in, operates, manages or controls any venture or enterprise that directly or indirectly competes with or operates in the same line of business as the
Company anywhere in the United States. Executive is permitted, however, to own up to 5% of the stock of a competing business for purely investment purposes, so long as the business is a company whose stock is publicly traded and he does not participate in the competing business in any other manner whatsoever.

     4.3 Interference with Relationships. During the Restricted Period, Executive shall not for himself or for any other person or entity (i) employ in any capacity, recruit or solicit for employment any of the Company’s employees, or otherwise seek to influence any of the Company employee’s to leave the Company’s employ; or (ii) solicit or encourage any client of the Company (i.e., any person or entity that was a client at any time during Executive’s employment with the Company or during the Restricted Period) to terminate or otherwise alter his, her or its relationship with the Company. 

     4.4 Confidential Information. During the Restricted Period and thereafter, Executive will not use or disclose any Confidential Information of the Company, except to the extent use or disclosure of the Confidential Information is necessary to the performance of his duties for the Company. As used in this Agreement, “Confidential Information” shall mean any information relating to the business or affairs of the Company, including but not limited to information relating to the Company’s marketing and business plans, strategy, finances, customer identities, potential customers, employees, research, programs, trade secrets, proprietary information or other information that the Company makes reasonable efforts to maintain as confidential. 

     4.5 Effect of Termination. If the Company or Executive should terminate this Agreement for any reason, the provisions contained in this Article IV will remain in full force and effect for the duration of the Restricted Period. 

     4.6 Remedies. Executive acknowledges and agrees that the covenants set forth in this Article IV (collectively, the “Restrictive Covenants”) are reasonable and necessary for the protection of the Company’s business interests, that irreparable injury will result to the Company if Executive breaches any of the terms of the Restrictive Covenants, and that in the event of Executive’s actual or threatened breach of any of the Restrictive Covenants, the Company will have no adequate remedy at law. Executive accordingly agrees that in the event of any actual or threatened breach by him of any of the Restrictive Covenants, the Company shall be entitled to immediate temporary injunctive and other equitable relief, without bond and without the necessity of showing actual monetary damages, subject to hearing as soon thereafter as
possible. Nothing contained herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages that it is able to prove. 

     4.7 Blue-Pencil. If any court of competent jurisdiction shall at any time deem any of the terms of the Restrictive Covenants unenforceable as written, the parties agree that the court should enforce the terms to the maximum extent permissible as determined by such court, rather than refuse to enforce the Restrictive Covenants at all. 

V. GENERAL PROVISIONS 

     5.1 Dispute Resolution. Any dispute arising among the parties to this Agreement will be resolved by single arbitrator arbitration conducted pursuant to Oregon Revised Statute Section 35.00, et seq., modified as described hereafter. Demand for arbitration shall be in writing, delivered to the other party. If the parties cannot agree to an arbitrator within thirty (30) days of the initial demand for arbitration, either party may petition the Multnomah County Circuit Court for the appointment of an arbitrator by the Court. Once appointed, the arbitrator shall allow discovery as described in the Oregon Rules of Civil Procedure. The hearing shall be conducted within one hundred twenty (120) days after the arbitrator’s appointment, unless otherwise agreed in writing by the parties. The arbitrator shall render a written decision within thirty (30)
days after completion of the hearing. Notwithstanding the provisions of this Section, the Company may seek and obtain appropriate restraining orders and temporary or permanent injunctions in a court proceeding without engaging in arbitration with respect to any alleged violation of the covenants contained in Article V. The prevailing party in any arbitration or other legal proceeding to enforce these Restrictive Covenants, or any appeal therefrom, shall be entitled to recover reasonable attorneys’ fees and costs, including all costs associated with depositions and expert witnesses, from the nonprevailing party. 

     5.2 Entire Agreement. Except where this Agreement specifically references and incorporates other agreements documents or policies, this Agreement contains the entire agreement and understanding of the parties with respect to Executive’s employment by the Company and the compensation payable to Executive by the Company and supersedes all prior understandings, agreements and discussions. This Agreement may only be amended or modified by a written instrument executed by Executive and the Company pursuant to authorization by the Board. 

     5.3 Notices. Any notice required or permitted under this Agreement shall be in writing and shall be delivered personally, or sent by certified or registered mail, postage prepaid, return receipt requested. Any such notice shall be considered given when delivered personally, or if mailed, three (3) days after the date of deposit in the United States mail addressed to the party at the last known address of the party. Any party may, by notice given to the other according to the provisions of this Section 6.3, designate an address or person for the receipt of notices. 

     5.4 Non-Waiver. Failure to enforce at any time any of the provisions of this Agreement shall not be interpreted to be a waiver of such provisions or to affect either the validity of this Agreement or the right of either party thereafter to enforce each and every provision of this Agreement. 

     5.5 Separability. If one or more provisions of this Agreement is finally determined to be invalid or unenforceable, such provision will not affect or impair the other provisions of this Agreement, all of which will continue to be in effect and will be enforceable, provided, however, that any such invalid provisions shall, to the extent possible, be reformed so as to implement insofar as practicable the intentions of the parties. 

     5.6 Law. This Agreement shall be interpreted in accordance with the laws of the State of Oregon.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES.

 

 WILLIAMS CONTROLS, INC.  

	 	               	 
	By:	 	                    		Dated: 	  	 
	Title:	 		
	  			
	  			
	  			
		 		
	EXECUTIVE  			  	 
	 			
	 			
	  	 		Dated: 	 	 
	Patrick W. CavanaghExhibit 4.2a

                                Escrow Agreement

     This Escrow Agreement (the "Agreement") is made by and between Regions
Bank, a national banking association, with its principal office located at 1425
E. Mitchell Hammock Road, Oviedo Florida (the "Escrow Agent"), and Emerging
Markets Holdings, Inc., a Florida corporation, with its principal office located
at 309 Celtic Court; Oviedo, Florida 32765 (the "Issuer").

                                   WITNESSETH
     WHEREAS, the Issuer filed with the Securities and Exchange Commission (the
"Commission"), Washington, D.C., an SB-2 Registration Statement (the
"Registration Statement"), and related Prospectus, File No. 333-130943, on.
January 10, 2006, as amended, in connection with an initial public offering of
the Issuer's securities, compromising 500,000 shares of the Issuer's common
stock to be sold at a price of $0.15 per share (the "Securities");

     WHEREAS, the Issuer proposes to offer the Securities to the public on a
"best efforts, all or none" basis as set forth in the Registration Statement;

     WHEREAS, the Issuer proposes to establish an escrow account (the "Escrow
Account"), to which subscription funds which are received by the Escrow Agent in
connection with such public offering are to be credited, and the Escrow Agent is
willing to establish the Escrow Account on the terms and subject to the
conditions hereinafter set forth; and

     WHEREAS, the Escrow Agent will establish an Escrow Account into which
subscription funds, which are received by the Escrow Agent and credited to the
Escrow Account, are to be deposited.

     NOW, THEREFORE, for and in consideration of the promises and mutual
covenants herein contained, and other valuable consideration, the parties hereto
hereby agree as follows:

1.   The Registration Statement.

     1.1. The Issuer has filed the Registration Statement with the Commission
and is included herein as Exhibit A to this Agreement, and is made a part
hereof.

2.   Establishment of the Escrow Account.

     2.1.   The Issuer shall initially establish a non-interest bearing the
Escrow Account at the Escrow Agent. The purpose of the Escrow Account is for (a)
the deposit of all subscription funds (checks or wire transfers) which are
received by the Issuer to the Escrow Agent; (b) the holding of amounts of
subscription funds which are collected through the banking system; and (c) the
disbursement- of collected funds, all as described herein. The Escrow Agent will
hold all monies and other property in the Escrow Account free from any lien,
claim or offset, except as set forth herein, and such monies and other property
shall not become the property of the Company, nor subject to the debts thereof,
unless the conditions set forth in these instructions to disbursement of such
monies to the Company have been fully satisfied.

<PAGE>

     2.2.   On or before the date of the initial deposit in the Escrow Account
pursuant to this Agreement, the Issuer shall notify the Escrow Agent in writing
of the effective date (the "Effective Date") of the Registration Statement, and
the Escrow Agent shall not be required to accept any amounts for credit to the
Escrow Account or for deposit in the Escrow Account prior to its receipt of such
notification.

     2.3.   The offering period (the "Offering Period"), which shall be deemed
to commence on the Effective Date, shall be for a period of up to 180 days. The
Offering Period shall be less than 180 days if the Issuer sells all Securities
for a total consideration of $75,000, whichever occurs first, is also referred
to herein as the "Termination Date." Except as provided in Section 4.3 hereof,
after the Termination Date, the Issuer shall not deposit, and the Escrow Agent
shall not accept, any additional amounts representing payments by prospective
purchases.

     2.4.   If the Escrow Account remains open following the Termination Date in
accordance with Article 4 below, the Fund (as defined in Section 3.5 below)
shall be placed in a money market investment account bearing interest at the
Escrow Agent's then applicable rate; provided, however, that no interest shall
accrue until the Escrow Agent has received an IRS Form W-9 completed and
executed by the Company.

3. Deposits to the Escrow Account.

     3.1.   The Issuer shall promptly deliver to the Escrow Agent all funds
which it receives from prospective purchasers of the Securities, which funds
shall be in the form of checks or wire transfers. Upon the Escrow Agent's
receipt of such funds, they shall be credited to the Escrow Account. All check
delivered to the Escrow Agent shall be made payable to the "Regions
Bank/Emerging Markets Holdings, Inc.'s Escrow Account." Any checks payable other
than to the Escrow Agent as required hereby shall be returned to the prospective
purchaser.

     3.2.   Promptly after receiving subscription funds as described in Section
3.1, the Escrow Agent shall deposit the same into the Escrow Account. Amounts of
funds so deposited are hereinafter referred to as "Escrow Amounts." The Escrow
Agent shall cause to process all Escrow Amounts for collection through the
banking system. Simultaneously with each deposit to the Escrow Account, the
Issuer shall provide the Escrow Agent a copy of the completed Subscription
Agreement for each prospective purchaser, including the name, address, and
social security number of the prospective purchaser, the amount of Securities
subscribed for by such purchaser, and the aggregate dollar amount of such
subscription, and a completed W-9 from each such purchaser (collectively, the
"Subscription Information").

     3.3.   The Escrow Agent shall not be required to accept for credit to the
Escrow Account checks which are not accompanied by the appropriate Subscription
Information. Wire transfers and cash representing payments by prospective
purchasers shall not be deemed deposited in the Escrow Account until the Escrow
Agent had received in writing the Subscription Information required with respect
to such payments.

     3.4.   The Escrow Agent shall not be required to accept in the Escrow
Account any amounts representing payments by prospective purchasers, whether by
check, or wire, except during the Escrow Agent's regular business hours.

                                       2
<PAGE>

     3.5.   Only those Escrow Amounts, which have been deposited in the Escrow
Account and which have cleared the banking system and have been collected by the
Escrow Agent, are herein referred to as the "Fund".

     3.6.   If the proposed offering is terminated before the Termination Date,
the Escrow Agent shall refund any portion of the Fund prior to disbursement of
the Fund in accordance with Article 4 hereof upon instructions in from the
Issuer.

4. Disbursement from the Escrow Account.

     4.1.   Subject to Section 4.3 below, if by the close of regular banking
hours on the Termination Date the. Escrow Agent determines that the amount in
the Fund is less than $75,000, then the Escrow Agent shall promptly refund to
each prospective purchaser the amount of payment received from such purchaser
which is then held in the Fund or which thereafter clears the banking system,
without interest thereon or deduction therefrom, by drawing checks on the Escrow
Account for the amounts of such payments and mail them to the purchasers. In
such event, the Escrow Agent shall promptly notify the Issuer of its
distribution of the Fund. If the fund is equal to $75,000, the Escrow Account
shall remain open beyond the Termination Date in accordance with Section 4.2
below.

     4.2.   If the Escrow Account remains open beyond the Termination Date, the
Issuer must satisfy the following conditions:

            (a)   Within five (5) business days after the effective date of the
post-effective amendment, the Issuer shall send by first class mail to each
purchaser of securities held in escrow, a copy of the prospectus contained in
the post-effective amendment and any amendment or supplement thereto;

            (b)   Each purchaser shall have no fewer than twenty (20) business
days and no more than forty-five (45) business days from the effective date of
the post-effective amendment to notify the Issuer in writing that the purchaser
elects to remain an investor. If the Issuer has not received such written
notification by the forty-fifth (45th) business day following the Effective Date
of the post-effective amendment, funds and interest held in escrow shall be sent
by first class mail or other equally prompt means to the purchasers within five
(5) business days; an acquisition described in the post-effective amendment will
be consummated if a sufficient number of purchasers confirm their investment
with the Issuer; and if an acquisition has not been consummated by the Issuer
within eighteen (18) months after the Effective Date of the Registration
Statement, funds and interest held in escrow shall be returned by first class
mail to the purchasers with five (5) business days following that date. It shall
be the responsibility of the Issuer to notify the Escrow Agent if any of the
above conditions are not timely satisfied. Additionally, it shall be the
Issuer's responsibility to timely provide instructions to the Escrow Agent with
respect to the interest calculations prior to release of funds and interest to
the purchasers in accordance with the terms of this Section 4.2;

            (c) Funds held in the Escrow Account may be released to the Issuer
and Securities may be delivered to the purchasers only at the same time as or
after;

                                       3
<PAGE>

            (d)   The Escrow Agent has received a signed representation from the
Issuer that the requirements of paragraphs (e) (1) and (e) (2) of Rule 419 have
been met; and

            (e)   The Escrow Agent has received a signed representation from the
Issuer that the requirements of paragraph (e) (2) (iii) of Rule 419 have been
met.

     The Issuer shall be liable for any misrepresentation made to the Escrow
Agent with respect to this Section 4.2 and the Issuer agrees to indemnify the
Escrow Agent for any claims made by purchasers with respect to this Section 4.2
in accordance with Article 5 below; provided, however, the Issuer shall not be
responsible for the Escrow Agent's failure to timely release funds and interest
to the purchasers upon receipt of instructions from the Issuer.

     4.3.   If the Escrow Agent has on hand at the close of the business on the
Termination Date any uncollected amounts which when added to the Fund would
raise the amount in the Fund to the minimum offering amount, and result in the
Fund representing the sale of the minimum offering amount, consisting of the
number of business days set forth in the Registration Statement, shall be
utilized to allow such uncollected funds to clear the banking system.

     4.4.   Upon disbursement of the Fund pursuant to the terms of this Article
4, the Escrow Agent shall be relieved of all further obligations and released
from all liability under this, Agreement. It is expressly agreed and understood
that in no event shall the aggregate amount of payments made by the Escrow Agent
exceed the amount of the Fund.

5. Rights, Duties and Responsibilities of the Escrow Agent; Indemnification.

     5.1.   The Issuer may inquire on a regular basis as to, and the Escrow
Agent shall provide the Issuer, the escrow amounts which have been deposited in
the Escrow Account and of the amounts, constituting the Fund, which have cleared
the banking system and have been collected by the Escrow Agent.

     5.2.   The Escrow Agent shall not be responsible for or be required to
enforce any of the terms or conditions of the Agreement with respect to the
Issuer.

     5.3.   The Escrow Agent shall not be required to accept from the Issuer any
subscription information pertaining to prospective purchasers unless such
Subscription Information is accompanied by checks or wire transfers meeting the
requirement of Section 3.1, nor shall the Escrow Agent be required to keep
records of any information with respect to payments deposited by the Issuer,
except as to the amount of such payments; however, the Escrow Agent shall notify
the Issuer within a reasonable time of any discrepancy between the amount set
forth in any subscription information and the amount delivered to the Escrow
Agent therewith. Such amount need not be accepted for deposit in the Escrow
Agent until such discrepancy has been resolved.

     5.4.   The Escrow Agent shall be under no duty or responsibility to enforce
collection of any check delivered to it hereunder. The Escrow Agent, within a
reasonable time, shall return to the Issuer any check received which is
dishonored, together with the Subscription Information which accompanied such
check.

                                       4
<PAGE>

     5.5.   The Escrow Agent shall be entitled to rely upon the accuracy, act in
reliance upon the contents, and assume the genuineness of any notice,
instruction, certificate, signature, instrument, or other document which is
given to the Escrow Agent by the Issuer pursuant to this Agreement without the
necessity of the Escrow Agent verifying the truth or accuracy thereof. The
Escrow Agent shall not be obligated to make any inquiry as to the authority,
capacity, existence or identity of any person purporting to give any such notice
or instructions or to execute any such certificate, instrument or other
document.

     5.6.   If the Escrow Agent is uncertain as to its duties or rights
hereunder or shall receive instructions with respect to the Escrow Account, the
escrow amounts of the Fund, which, in its sole determination, are in conflict
either with other instructions received by it or with any provision of this
Agreement, it shall be entitled to hold the escrow amounts, the Fund or a
portion thereof, in the Escrow Account pending the resolution of such
uncertainty to the Escrow Agent's sole satisfaction, by final judgment of a
court of competent jurisdiction or otherwise; or the Escrow Agent, as its sole
option, may deposit with the clerk of a court of competent jurisdiction in a
proceeding to which all parties in interest are joined. Upon the deposit by the
Escrow Agent of the Fund with the clerk of any court, the Escrow Agent shall be
relieved of all further obligations and released from all liability hereunder.

     5.7.   The Escrow Agent shall not be liable for any action taken or omitted
hereunder, or for the misconduct of any employee, agent or attorney appointed by
it, except in the case of willful misconduct or gross negligence. The Escrow
Agent shall be entitled to consult with counsel of its own choosing and shall
not be liable for any action taken, suffered or omitted by it in accordance with
the advice of such counsel.

     5.8.   The Escrow Agent shall have no responsibility at any time to
ascertain whether or not any security interest exists in the escrow amounts, the
Fund or any part thereof or to file any financing statement under the Uniform
Commercial Code with respect to the Fund or any part thereof.

     5.9.   The Issuer agrees to indemnify the Escrow Agent and its officers,
directors, employees, agents, and shareholders (jointly and severally, the
"Indemnities") against, and hold them harmless of and from, any and all loses,
liabilities, costs, damages, and expenses, including, but not limited to,
reasonable fees and disbursements for counsel of its own choosing (collectively,
"Liabilities"), that the Indemnities may suffer or incur and which arise out of
or relate to this Agreement or any transaction to which this Agreement relates,
unless such Liability is the result of the willful misconduct or gross
negligence of the Indemnities.

     5.10.  If the indemnification provided for in this Section 5 is applicable
but is held to be unavailable, the Issuer shall contribute such amounts as are
just and equitable to pay or to reimburse the Indemnities for the aggregate of
any and all Liabilities actually incurred by the Indemnities as a result of or
in connection with any amount paid in settlement of any action, claim, or
proceeding arising out of or relating in any way to any actions or omissions of
the Issuer.

     5.11.  The provisions of this Section 5 shall survive any termination of
this Agreement, whether by disbursement of the Fund, resignations of the Escrow
Agent, or otherwise.

                                       5
<PAGE>

6.   Interpleader.

     6.1.   In the event conflicting demands are made or notices served upon
the. Escrow Agent with respect to the Escrow Account, the Escrow Agent shall
have the absolute right as its election to do either or both of the following:
(a) Withhold and stop all further proceedings in, and performance of, this
escrow or (b) File a suit in interpleader and obtain an order from the court
requiring the parties to litigate their several claims and rights among
themselves. In the event such interpleader suit is brought, the Escrow Agent
shall be fully released from any obligation to perform any further duties
imposed upon it hereunder, and the Company shall pay the Escrow Agent all costs,
expenses, and reasonable attorney's fees expended or incurred by Escrow Holder
(or allocable to its in-house counsel), the amount thereof to be fixed and a
judgment thereof to be rendered by the court in such suit.

7.   Amendment; Resignation.

     7.1.   This Agreement may be altered or amended only with the written
consent of the parties hereto. The Escrow Agent may resign for any reason upon
fourteen (14) days' written notice to the Issuer. Should the Escrow Agent resign
as herein provided, it shall not be required to accept any deposit, make any
disbursement or otherwise dispose of the escrow amounts, but its only duty shall
be to hold the escrow accounts until they clear the banking system and the Fund
for a period of not more that five (5) business days following the effective
date of such resignation, at which time (a) if a successor escrow agent shall
have been appointed and written notice thereof shall have been given to the
resigning escrow agent by the Issuer and such successor escrow agent, then the
resigning escrow agent shall pay over to the successor escrow agent the Fund,
less any portion thereof previously paid out in accordance with this Agreement;
or (b) if the resigning escrow agent shall not have received written notice
signed by the Issuer and a successor escrow agent, then the resigning escrow
agent shall promptly notify the Issuer of its liquidation and distribution of
the Fund; whereupon, in either case, the Escrow Agent shall be relieved of all
further obligation and released from all liability under this Agreement. Without
limiting the provisions of Section 9.1 hereof, the resigning escrow agent shall
be entitled to be reimbursed by the Issuer for any expenses incurred in
connection with its resignation, transfer of the Fund to a successor escrow
agent or distribution of the Fund pursuant to this Section 7.1.

8.   Representations and Warranties.

     8.1.   The Issuer represents and warrants to the Escrow Agent that no party
other than the parties hereto and the prospective purchasers have, or shall
have, any claim or security interest in the Fund or any part thereof.

     8.2.   No financing statement under the Uniform Commercial Code is on file
in any jurisdiction claiming a security interest in or describing the Fund or
any part thereof.

     8.3.   The Subscription Information submitted with each deposit shall, at
the time of submission and at the time of the disbursement of the Fund, be
deemed a representation and warranty that such deposit represents a bona fide
payment by the purchaser described therein for the amount of Securities set
forth in such Subscription Information.

                                       6
<PAGE>

     8.4.   All of the information contained in the Registration Statement is,
as of the date hereof, and will be, at the time of any disbursement of the Fund,
true and correct.

9.   Fees and Expenses.

     9.1.   The Escrow Agent shall not charge the Issuer any fee in connection
with this Agreement. The Issuer agrees to reimburse the Escrow Agent for any
reasonable fees and expenses incurred in connection with this Agreement.

10.  Governing Law and Assignment.

     10.1.  This Agreement shall be construed in accordance with and governed
by the laws of the State of Florida shall be binding upon the parties hereto and
their respective successors and assigns; provided, however, that any assignment
or transfer by any party of its rights under this Agreement or with respect to
the Fund shall be void as against the Escrow Agent unless (a) written notice
thereof shall be given to the Escrow Agent; and (b) the Escrow Agent shall have
consented in writing to such assignment or transfer.

11.  Notices.

     11.1.  All notices required to be given in connection with this Agreement
shall be sent by registered or certified mail, return receipt requested, or by
hand delivery with receipt acknowledged, or by Express Mail service offered by
the United States Post Office to the following addresses:

            ISSUER:

            Emerging Markets Holdings, Inc.
            309 Celtic Court
            Oviedo, Florida 32765

            with a copy to:

            Greene & Lee, P.L.
            Attention: Robert Q. Lee
            111 North Orange Avenue,
            Suite 1450
            Orlando, Florida 32801

            ESCROW AGENT:

            Regions Bank
            Attention:  Aida Apointe, Assistant Branch Manager
            1425 East Mitchell Hammock Road
            Oviedo, Florida 32765

                                       7
<PAGE>

Severability

     12.1.  If any provision of this Agreement or the application thereof to
any person or circumstances shall be determined to be invalid or unenforceable,
the remaining provisions of this Agreement or the application of such provisions
to persons of circumstances other than those to which it is held invalid or
unenforceable shall not be affected thereby and shall be valid and enforceable
to the fullest extent permitted by law.

12.  Execution in Several Counterparts; Entire Agreement.

     13.1.  This Agreement may be executed in several counterparts or by
separate instruments, all of such counterparts and instruments shall constitute
one agreement, binding on all of the parties hereto.

     13.2.  This Agreement constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings, written or oral, of the parties in
connection therewith.

IN WITNESS WHEREOF, the undersigned parties have executed this Agreement upon
proper legal authority as of the 4 day of May, 2006.

                                   Regions Bank, a national banking association

                                   By: /s/ Aida Apointe
                                       ----------------
                                       BAM, its Trust Officer

                                   Emerging Markets Holdings, Inc., a Florida
                                   Corporation

                                   By: /s/ Serguei Melnik
                                       ------------------
                                       Serguei Melnik

                                       8

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