Document:

EXHIBIT 10.18

                            FIRST AMENDMENT TO LEASE

                            ------------------------

     This  First  Amendment  to Lease ("First Amendment"), is made as of the 1st
                                                                             ---
day of February, 2001, between Kelsey-Hayes Company ("Landlord") and Measurement
         ----------
Specialties,  Inc.  ("Tenant").

                              W I T N E S S E T H:

                              --------------------

     WHEREAS,  Landlord  and Tenant  entered  into a Lease dated as of August 4,
2000 (the "Lease")  whereby  Landlord leased to Tenant a portion of the building
located at 1000 Lucas Way, Hampton, VA 23555 (the "Building");

     WHEREAS, Tenant desires to lease the remainder of the Building.

     NOW,  THEREFORE,  in consideration of the mutual covenants,  conditions and
agreements hereinafter contained, Landlord and Tenant hereby agree as follows:

     1.   Article  1.1  of  the Lease is hereby amended by replacing the phrase:
          "consisting  of approximately sixty-two thousand five hundred (62,500)
          square  feet" with the phrase "consisting of approximately one hundred
          twenty thousand (120,000) square feet, which includes all of the space
          in  the  Building." In addition, the floor plan set forth on Exhibit A
          of the Lease is replaced with the floor plan set forth on Exhibit A to
          this First Amendment. Furthermore, the last sentence of Article 1.1 is
          deleted  in  its  entirety.

     2.   Articles  1.2  and  1.3  are  deleted  in  their  entirety.

     3.   Article  2.1 of the Lease is  hereby  deleted  in,  its  entirety  and
          replaced with the following: "The term of this Lease shall commence on
          August  7, 2000 (the  "Commencement  Date")  and shall end on July 31,
          2011,  except that if the expiration date falls on a Saturday,  Sunday
          or  legal  holiday,  then  the  term of this  Lease  shall  end on the
          business day next following the aforementioned date."

     4.   Article  3.1  is  deleted  in  its  entirety  and  replaced  with  the
          following:

     During the initial term of this Lease,  Tenant shall pay to Landlord  "Base
Rent" as follows:

<PAGE>

Office   Manufacturing      Rent      Installment    From      To

-------  --------------  -----------  ------------  -------  -------
$  8.50   $        4.50  $   355,250  $  29,604.17  8/4/200  7/31/01
-------  --------------  -----------  ------------  -------  -------
      -               -  $566,000.00  $  47,166.66   8/1/01  7/31/02
      -               -  $582,980.00  $  48,581.66   8/1/02  7/31/03
      -               -  $600,469.40  $  50,039.11   8/1/03  7/31/04
      -               -  $618,483.48  $  51,540.29   8/1/04  7/31/05
      -               -  $637,037.98  $  53,086.49   8/1/05  7/31/06
      -               -  $656,149.11  $  54,679.09   8/1/06  7/31/07
      -               -  $675,833.58  $  56,319.46   8/1/07  7/31/08
      -               -  $696,108.58  $  58,009.04   8/1/08  7/31/09
      -               -  $716,991.83  $  59,749.31   8/1/09  7/31/10
      -               -  $738,501.58  $  61,541.79   8/1/10  7/31/11
-------  --------------  -----------  ------------  -------  -------

-------  --------------  -----------  ------------  -------  -------

     5.     Section  3.2  is hereby amended to reflect three percent annual (3%)
     increases.

     6. Article 4.1 is hereby  deleted in its  entirety  and  replaced  with the
     following:  "For the purpose of this Article,  the term  'Tenant's Pro Rata
     Share' shall mean 100%."

     7.     Article  10.2  and Exhibit "C" are hereby deleted in their entirety.
                               ----------

     8.     Article  35  is  hereby amended by replacing the phrase "one hundred
ninety-seven  (197)"  with  "three  hundred  six  (306)".

     9. Landlord shall provide Tenant with One Hundred Thirty Thousand Sixty-Two
     Dollars  ($130,062) to be paid to Tenant by July 31,2001 or if the property
     is sold, at closing.

     10.     Except  as  specifically  amended herein, the Lease shall remain in
full  force  and  effect  and unmodified and is hereby ratified in all respects.

<PAGE>

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

                                            KELSEY-HAYES  COMPANY

                                            By:  /S/

---------------------------------------         -------------------------------

                                            Its: Assistant  Secretary

---------------------------------------         -------------------------------

                                            MEASUREMENT  SPECIALTIES,  INC.

                                            By:  /S/

---------------------------------------         -------------------------------

                                            Its: Chief  Financial  Officer

---------------------------------------         -------------------------------

                                       -3-[MEASUREMENT SPECIALTIES, INC]

March 21, 2001

Terraillon Holdings Limited
C/O Downer & Company
Ashley E. Rountree
368-370 Rue Saint Honore
75001 Paris
France

Re: Acquisition of Terraillon

Dear Mr. Rountree,

Thank  you  for  your  continuing   efforts  in  connection  with  our  possible
acquisition  of  Terraillon.  We are pleased to present this letter of intent to
purchase Terraillon.

The  following  incorporates  our  discussions  concerning  the terms upon which
Measurement Specialties, Inc. proposes to acquire all the issued and outstanding
shares of  Terraillon  including  all wholly,  partially,  or  indirectly  owned
subsidiaries  (Terraillon) as a going concern,  assuming the assets and included
liabilities.  This final  proposal is a non  binding  letter of intent only and,
except as provided otherwise, is not intended to be a binding agreement.

The proposed terms of acquisition are as follows:

1.    Purchase Price
       The purchase price ("Purchase  Price") for all the issued and outstanding
       shares of Terraillon will be USD 17,000,000.  The  consideration  will be
       paid as follows:  (i) USD  10,200,000  in cash and (ii) USD  6,800,000 in
       common shares of Measurement Specialties.  The number of shares issued at
       closing  would be  calculated  using 95% of the average  closing price of
       Measurement  Specialties  stock for the 30  trading  dates  precedent  to
       signing a Definitive  Purchase  Agreement.  In the event that  Terraillon
       hedges  the US  dollar  exposure  arising  from the cash  portion  of the
       Purchase Price, we will agree to assign the Euro contracts  purchased for
       this purpose to the presale  shareholders  of Terraillon,  as long as the
       execution  and delivery  occurs  within 45 days of the Closing  date,  as
       defined in this document.  The  Definitive  Purchase  Agreement  would be
       subject to financing and necessary governmental  approvals,  provided the
       financing and all necessary governmental approvals are secured by the end
       of the Exclusivity period, as defined in Section 9 of this document.

2.    Payment of Purchase Price
       The cash portion of the Purchase  Price will be paid upon Closing,  which
       shall  occur upon  completion  of  Measurement  Specialties  contemplated
       offering of Common Stock.  Fifteen  percent of the Purchase Price will be
       placed  in escrow  until  expiration  of  Representation  and  Warranties
       included in the Definitive Purchase Agreement,  such period not to exceed
       one year from the Closing date . Such escrow may at sellers discretion be
       in  the  form  of the  stock  of  Measurement  Specialties  at the  price
       calculated  in point 1 above.  All stock  received  may not be sold for a
       minimum of one year after closing.
<PAGE>
                                                                    CONFIDENTIAL

3.    Assumption of debt
       Measurement  Specialties  will assume up to Euro  4,303,600 of debt as of
       April 30,  the date of the  Definitive  Purchase  Agreement,  subject  to
       financing,  as noted in  Section 1 of this  document.  To the  extent any
       additional debt is assumed,  an adjustment of the purchase price would be
       made  in  the  proportion  of  60%  cash  and  40%  stock..   Measurement
       Specialties will not assume the Hibernia Convertible Loan Stock.

4.    Employment of key management
       Our  understanding  is  key  management  will  remain  in  their  current
       positions   in   Terraillon.    Compensation   consistent   with   market
       compensation,  including performance based bonus, will be agreed prior to
       closing.  During  the due  diligence  phase,  we  expect  to  affirm  our
       assumption  sufficient incentives can be established to ensure continuity
       of  management.  We will  consider  equity  participation  in the form of
       options  for key  employees.  Half of the stock  portion of the  purchase
       price paid to  management  will vest in three equal  instalments  at six,
       twelve,  and eighteen  months after  Closing.  Vesting will be contingent
       upon  continuing  employment,   except  for  termination  by  Measurement
       Specialties  other  than  for  cause,  in  which  case  vesting  would be
       immediate.

5.    Conditions
       Measurement   Specialties'   obligation  to  continue  to  negotiate  and
       consummate  the  Acquisition  will  be  subject  to  certain  conditions,
       including, but not limited to the following:

          A)  Measurement  Specialties  conducting a complete legal,  financial,
              and  business   review  of  the   financial   condition,   assets,
              liabilities,  and business of  Terraillon,  whereby the results of
              such review are  satisfactory to Measurement  Specialties.  Review
              shall include contact with major customers and suppliers;
          B)  Measurement Specialties, if it so elects, conducting environmental
              and  regulatory  audits of Terraillon  facilities  and  operations
              (past and  present),  with  results  satisfactory  to  Measurement
              Specialties;
          C)  Measurement Specialties completing a public offering of additional
              shares of common  stock,  or such other  financing  acceptable  to
              Measurement   Specialties,   and  approval  by  necessary  lending
              institutions;
          D)  Terraillon  supplying  audited GAAP  financial  statements for the
              past two years  acceptable for filing by  Measurement  Specialties
              with the Securities and Exchange Commission ("SEC");
          E)  The satisfaction of all  governmental  conditions  or  obligations
              necessary for the consummation of  the  transactions  contemplated
              herein;
          F)  Final approval by both the  Measurement  Specialties  and Hibernia
              Board of  Directors.  Preliminary  approval,  subject to the items
              contained within this letter, was received.

6.    Representations and warranties
       Liabilities for the  Representations  and  Warranties,  the text of which
       will be  mutually  agreed  upon and  appropriate  to your  position  as a
       private equity investor, will be limited to one year from the Closing and
       will be discharged only out of the escrow.
<PAGE>
                                                                    CONFIDENTIAL

7.    Expenses
       Each party will be  responsible  for its respective  expenses,  including
       attorney's  and  investment  banker / broker  fees,  if any,  incurred in
       connection with the proposed acquisition.

8.    Publicity
       The  parties  agree  that they will hold  discussions  on all  matters in
       connection  herewith  in  strictest  confidence  and will  require  their
       representatives  and others with whom they work in  connection  with this
       matter to maintain such strict confidence in accordance with the terms of
       the  Confidentiality  Agreement  dated  October 4, 2000 and  February 23,
       2001. The foregoing will not preclude  customer or supplier  contact that
       Measurement  Specialties  may  conduct  as part of its due  diligence  or
       disclosures required by law or any securities  exchange.  Any customer or
       supplier  contact will be mutually  agreed upon. The parties  acknowledge
       disclosure  of  the  terms  of  this  letter,   financial  statements  of
       Terraillon,  and the business  outlook for the combined  entities will be
       part of  Measurement  Specialties  public  offering  and  its  subsequent
       marketing.  Any text  concerning  such  disclosure  must be  approved  by
       Hibernia and  Terraillon,  prior to its release,  such approval shall not
       unreasonably be withheld and shall be granted or rejected within 24 hours
       within its receipt.  Approvals  shall not be withheld for any disclosures
       required by law or any Securities Exchange.

9.    Exclusivity
       Terraillon  agrees  that it will not sell,  nor  solicit or  discuss  any
       offers to buy  Terraillon  to any  other  person  until  May  31st.  Such
       exclusivity  will be dependent upon  achievement of mutually  agreed upon
       milestones,  and its specific  provisions  will be outlined in a separate
       agreement.

 Letter of Interest

       The parties  acknowledge that this letter omits many terms, some of which
       are material. This letter is intended to be, and shall be construed as, a
       letter  of intent  and not a binding  agreement.  Respective  rights  and
       obligations  of the  parties  remain  to be  defined  in  the  definitive
       Purchase Agreement,  into which this letter of intent, prior discussions,
       and matters arising as a result of due diligence,  will merge;  provided,
       however,  the  obligations  of the parties  under  paragraphs 7, 8, and 9
       above will be binding upon the parties upon the execution of this letter.
       In any event, the terms and conditions of the  Confidentiality  Agreement
       dated  October 4, 2000 and  February  23, 2001 shall remain in full force
       and effect.

10.   Timetable
       Agreement in principle of contract terms            March 22
       Initial filing of Measurement Specialties
         public offering and press release
         regarding acquisition                             March 30
       Due Diligence                                       March 20 to Closing
       Definitive Purchase Agreement
         (subject to financing and government approval,    April 30
         provided the financing and all necessary
         governmental approvals are secure prior to the
         Closing date set out below)
       Closing                                             May 25

<PAGE>
                                                                    CONFIDENTIAL

If the  foregoing  sets  forth a basis upon  which you  believe we can  proceed,
kindly signify by executing and returning the enclosed copy of this letter.

                                        Sincerely yours,
                                        Measurement Specialties, Inc.

                                        /s/ Joseph R. Mallon Jr.
                                        ------------------------
                                        Joseph R. Mallon Jr.
                                        Chairman and Chief Executive Officer

Agreed and Accepted

Hibernia GP Limited, General partner of
Hibernia Development Capital Partners II, ilp

/s/ Luke Crosbie                   March 23, 2001
--------------------------------  ---------------------
By                                 Date

/s/ Fergal Mulchrone               March 22, 2001
--------------------------------  ---------------------
Fergal Mulchrone                   Date

/s/ Chris Duggan                   March 22, 2001
--------------------------------  ---------------------
Chris Duggan                       Date

/s/ Andrew Gleeson
--------------------------------  ---------------------
 Andrew Gleeson                    Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]