Document:

REGISTRATION RIGHTS AGREEMENT

 

REGISTRATION RIGHTS
AGREEMENT (this "Agreement"), dated as of December 17, 2013, by and among eOn Communications Corporation,
a Delaware corporation, with headquarters located at 1703 Sawyer Road, Corinth, MS 38834 (the "Company"), and
the investors listed on the Schedule of Buyers attached hereto (each, a "Buyer" and collectively, the "Buyers").

 

WHEREAS:

 

A.           In
connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the "Securities
Purchase Agreement"), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase
Agreement, to issue and sell to each Buyer (i) shares of the Company's Series B Convertible Preferred Stock, par value $0.001 per
share (the "Preferred Shares"), which will, among other things, be convertible into a certain number of shares
of the Company's common stock, par value $0.005 per share (the "Common Stock as converted, the "Conversion Shares")
in accordance with the terms of the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock
(the "Certificate of Designations") and (ii) warrants (the "Warrants") which will be exercisable
to purchase shares of Common Stock (as exercised, the "Warrant Shares") in accordance with the terms of the Warrants.

 

B.           In
accordance with the terms of the Securities Purchase Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the "1933 Act"), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company and each of the Buyers hereby agree as follows:

 

1.          Definitions.

 

Capitalized terms used
herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

 

(a)         "Additional
Effective Date" means the date the Additional Registration Statement is declared effective by the SEC.

 

(b)         "Additional
Effectiveness Deadline" means the date which is (i) in the event that the Additional Registration Statement is not subject
to a full review by the SEC, thirty (30) calendar days after the earlier of the Additional Filing Date and the Additional Filing
Deadline or (ii) in the event that the Additional Registration Statement is subject to a full review by the SEC, seventy-five (75)
calendar days after the earlier of the Additional Filing Date and the Additional Filing Deadline.

 

    	 

    	 

    

 

(c)         "Additional
Filing Date" means the date on which the Additional Registration Statement is filed with the SEC.

 

(d)         "Additional
Filing Deadline" means if Cutback Shares are required to be included in any Additional Registration Statement, the later
of (i) the date sixty (60) days after the date substantially all of the Registrable Securities registered under the immediately
preceding Registration Statement are sold and (ii) the date six (6) months from the Initial Effective Date or the most recent Additional
Effective Date, as applicable.

 

(e)         "Additional
Registrable Securities" means, (i) any Cutback Shares not previously included on a Registration Statement and (ii) any
capital stock of the Company issued or issuable with respect to the Preferred Shares, the Conversion Shares, the Warrants, the
Warrant Shares, or the Cutback Shares, as applicable, as a result of any stock split, stock dividend, recapitalization, exchange
or similar event or otherwise, without regard to any limitations on conversion of the Preferred Shares or exercise of the Warrants,
unless any of such Additional Registrable Securities are already deemed registered pursuant to Rule 416 under the 1933 Act.

 

(f)          "Additional
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering any Additional Registrable Securities.

 

(g)         "Additional
Required Registration Amount" means any Cutback Shares not previously included on a Registration Statement, all subject
to adjustment as provided in Section 2(f), without regard to any limitations on conversion of the Preferred Shares or exercise
of the Warrants.

 

(h)         "Business
Day" means any day other than Saturday, Sunday or any other day on which commercial banks in The City of New York are
authorized or required by law to remain closed.

 

(i)          "Closing
Date" shall have the meaning set forth in the Securities Purchase Agreement.

 

(j)          "Cutback
Shares" means any of the Initial Required Registration Amount or the Additional Required Registration Amount of Registrable
Securities not included in all Registration Statements previously declared effective hereunder as a result of a limitation on the
maximum number of shares of Common Stock of the Company permitted to be registered by the staff of the SEC pursuant to Rule 415.
The number of Cutback Shares shall be allocated pro rata among the Investors with each Investor entitled to elect the portion of
its Conversion Shares and/or Warrant Shares that are to be considered Cutback Shares. For the purpose of determining the Cutback
Shares, in order to determine any applicable Required Registration Amount, unless an Investor gives written notice to the Company
to the contrary with respect to the allocation of its Cutback Shares, first the Warrant Shares shall be excluded on a pro rata
basis among the Investors until all of the Warrant Shares have been excluded and second the Conversion Shares shall be excluded
on a pro rata basis among the Investors until all of the Conversion Shares have been excluded.

 

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(k)         "Effective
Date" means the Initial Effective Date and the Additional Effective Date, as applicable.

 

(l)          "Effectiveness
Deadline" means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

 

(m)        "Eligible
Market" means the Principal Market, the NYSE MKT LLC, The NASDAQ Global Market, The NASDAQ Global Select Market or The
New York Stock Exchange, Inc.

 

(n)         "Filing
Deadline" means the Initial Filing Deadline and the Additional Filing Deadline, as applicable.

 

(o)         "Initial
Effective Date" means the date that the Initial Registration Statement has been declared effective by the SEC.

 

(p)         "Initial
Effectiveness Deadline" means the date on which the S-4 Registration Statement is declared effective by the SEC.

 

(q)         "Initial
Filing Deadline" means the date which is within one (1) Business Day of the date on which the S-4 Registration Statement
is filed with the SEC.

 

(r)          "Initial
Registrable Securities" means (i) the Conversion Shares issued or issuable upon conversion of the Preferred Shares, (ii)
the Warrant Shares issued or issuable upon exercise of the Warrants and (iii) any capital stock of the Company issued or issuable,
with respect to the Conversion Shares, the Preferred Shares, the Warrant Shares or the Warrants as a result of any stock split,
stock dividend, recapitalization, exchange or similar event or otherwise, without regard to any limitations on conversion of the
Preferred Shares or exercise of the Warrants, unless any of such Initial Registrable Securities are deemed registered pursuant
to Rule 416 under the 1933 Act.

 

(s)         "Initial
Registration Statement" means a registration statement or registration statements of the Company filed under the 1933
Act covering the Initial Registrable Securities.

 

(t)          "Initial
Required Registration Amount" means a number of shares of Common Stock equal to 20% of the number of shares of Common
Stock issued and outstanding as of the date of this Agreement.

 

(u)         "Investor"
means a Buyer, any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become
bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee
or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance
with Section 9.

 

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

 

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(w)        "Principal
Market" means the NASDAQ Capital Market.

 

(x)          "register,"
"registered," and "registration"
refer to a registration effected by preparing and filing one or more Registration Statements (as defined below) in compliance with
the 1933 Act and pursuant to Rule 415, and the declaration or ordering of effectiveness of such Registration Statement(s) by the
SEC.

 

(y)         "Registrable
Securities" means the Initial Registrable Securities and the Additional Registrable Securities; provided, that as of the
earlier of (i) the date on which the Investors may sell all of the Registrable Securities covered by such Registration Statement
without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or
any successor thereto) promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable
Securities covered by such Registration Statement, such otherwise Registrable Securities shall cease to be Registrable Securities.

 

(z)          "Registration
Statement" means the Initial Registration Statement and the Additional Registration Statement, as applicable.

 

(aa)       "Required
Holders" means the holders of at least sixty percent (60%) of the Registrable Securities.

 

(bb)       "Required
Registration Amount" means either the Initial Required Registration Amount or the Additional
Required Registration Amount, as applicable.

 

(cc)       "Reverse
Merger" shall have the meaning ascribed to such term in the Certificate of Designations.

 

(dd)       "Rule
415" means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering
securities on a continuous or delayed basis.

 

(ee)       "S-4
Registration Statement" means the registration statement to be filed by the Company in connection with the Reverse Merger.

 

(ff)         "SEC"
means the United States Securities and Exchange Commission.

 

(gg)       "Trading
Day" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that "Trading Day" shall not include any day on which the Common Stock is scheduled to
trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

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2.          Registration.

 

(a)          Initial
Mandatory Registration. The Company shall prepare, and, as soon as practicable but in no event later than the Initial Filing
Deadline, file with the SEC the Initial Registration Statement on Form S-3 covering the resale of the Initial Required Registration
Amount of Initial Registrable Securities, subject to any required reduction by the SEC to the number of Registrable Securities
allowed to be included in such Initial Registration Statement. In the event that Form S-3 is unavailable for such a registration,
the Company shall use Form S-1 or such other form as is available for such a registration on another appropriate form reasonably
acceptable to the Required Holders, subject to the provisions of Section 2(e). The Initial Registration Statement prepared pursuant
hereto shall register for resale at least the number of shares of Common Stock equal to the Initial Required Registration Amount
determined as of the date the Initial Registration Statement is initially filed with the SEC, subject to adjustment as provided
in Section 2(f). The Initial Registration Statement shall contain (except if otherwise directed by the Required Holders) the "Selling
Stockholders" and "Plan of Distribution" sections in substantially the form attached hereto as Exhibit B. The Company
shall use its reasonable best efforts to have the Initial Registration Statement declared effective by the SEC as soon as practicable,
but in no event later than the Initial Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Initial
Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used
in connection with sales pursuant to such Initial Registration Statement.

 

(b)          Additional
Mandatory Registrations. The Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing
Deadline, file with the SEC an Additional Registration Statement on Form S-3 covering the resale of all of the Additional Registrable
Securities not previously registered on an Additional Registration Statement hereunder. To the extent the staff of the SEC does
not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement, the Company shall
file Additional Registration Statements successively trying to register on each such Additional Registration Statement the maximum
number of remaining Additional Registrable Securities until the Additional Required Registration Amount has been registered with
the SEC. In the event that Form S-3 is unavailable for such a registration, the Company shall use such Form S-1 or other form as
is available for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the
provisions of Section 2(e). Each Additional Registration Statement prepared pursuant hereto shall register for resale at least
that number of shares of Common Stock equal to the Additional Required Registration Amount determined as of the date such Additional
Registration Statement is initially filed with the SEC, subject to adjustment as provided in Section 2(f). Each Additional Registration
Statement shall contain (except if otherwise directed by the Required Holders) the "Selling Stockholders" and "Plan
of Distribution" sections in substantially the form attached hereto as Exhibit B. The Company shall use its reasonable
best efforts to have each Additional Registration Statement declared effective by the SEC as soon as practicable, but in
no event later than the Additional Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Additional
Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used
in connection with sales pursuant to such Additional Registration Statement.

 

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(c)          Allocation
of Registrable Securities. The initial number of Registrable Securities included in any Registration Statement and any increase
or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the
number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable
Securities or increase or decrease thereof is declared effective by the SEC. In the event that an Investor sells or otherwise transfers
any of such Investor's Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number
of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock included in a
Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered by such
Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of Registrable Securities then
held by such Investors which are covered by such Registration Statement. In no event shall the Company include any securities other
than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.

 

(d)          Legal
Counsel. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 ("Legal Counsel"), which shall be Schulte Roth & Zabel LLP or
such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably cooperate with
each other in performing the Company's obligations under this Agreement.

 

(e)          Ineligibility
for Form S-3. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder,
the Company shall (i) register the resale of the Registrable Securities on Form S-1 or another appropriate form reasonably acceptable
to the Required Holders and (ii) undertake to register the Registrable Securities on Form S-3 as soon as such form is available,
provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration
Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

 

(f)          Sufficient
Number of Shares Registered. In the event the number of shares available under a Registration Statement filed pursuant to Section
2(a) or Section 2(b) is insufficient to cover all of the Registrable Securities required to be covered by such Registration Statement
or an Investor's allocated portion of the Registrable Securities pursuant to Section 2(c) (other than Cutback Shares), the Company
shall amend the applicable Registration Statement, or file a new Registration Statement (on the short form available therefor,
if applicable), or both, so as to cover at least the Required Registration Amount as of the Trading Day immediately preceding the
date of the filing of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event not
later than fifteen (15) days after the necessity therefor arises. The Company shall use its reasonable best efforts
to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof.
For purposes of the foregoing provision, the number of shares available under a Registration Statement shall be deemed "insufficient
to cover all of the Registrable Securities" if at any time the number of shares of Common Stock available for resale under
the Registration Statement is less than the product determined by multiplying (i) the Required Registration Amount as of such time
by (ii) 0.90. The calculation set forth in the foregoing sentence shall be made without regard to any limitations on conversion
of the Preferred Shares or exercise of the Warrants and such calculation shall assume that the Preferred Shares are then convertible
into shares of Common Stock at the then prevailing Conversion Rate (as defined in the Certificate of Designations and the Warrants
are then exercisable for shares of Common Stock at the then prevailing Exercise Price (as defined in the Warrants).

 

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(g)          Effect
of Failure to File and Obtain and Maintain Effectiveness of Registration Statement. If (i) the Initial Registration Statement
when declared effective fails to register the Initial Required Registration Amount of Initial Registrable Securities (a "Registration
Failure"), (ii) a Registration Statement covering (A) all of the Registrable Securities
required to be covered thereby and required to be filed by the Company pursuant to this Agreement is not filed with the SEC on
or before the applicable Filing Deadline (a "Filing Failure") or (B)
all of the Registrable Securities required to be covered thereby (other than Cutback Shares) and required to be filed by the Company
pursuant to this Agreement is not declared effective by the SEC on or before the applicable Effectiveness Deadline, (an "Effectiveness
Failure") or (iii) on any day after the applicable Effective Date sales of all of the
Registrable Securities required to be included on such Registration Statement cannot be made (other than during an Allowable Grace
Period (as defined in Section 3(r)) pursuant to such Registration Statement or otherwise (including, without limitation, because
of the suspension of trading or any other limitation imposed by an Eligible Market, a failure to keep such Registration Statement
effective, a failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement,
a failure to register a sufficient number of shares of Common Stock (other than Cutback Shares) or a failure to maintain the listing
of the Common Stock) (a "Maintenance Failure") then, as partial relief
for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying shares of Common
Stock (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without limitation,
specific performance), the Company shall pay to each holder of Registrable Securities relating to such Registration Statement
an amount in cash equal to one and one-half percent (1.5%) of the aggregate Purchase Price (as such term is defined in the Securities
Purchase Agreement) of such Investor's Registrable Securities not included in such Registration Statement (other than Cutback
Shares in case the event triggering the provisions of this Section 2(g) is an Effectiveness Failure) on each of the following
dates: (i) the day of a Registration Failure; (ii) the day of a Filing Failure; (iii) the day of an Effectiveness Failure; (iv)
the initial day of a Maintenance Failure; (v) on the thirtieth day after the date of a Registration Failure and every thirtieth
day thereafter (pro rated for periods totaling less than thirty days) until such Registration Failure is cured; (vi) on the thirtieth
day after the date of a Filing Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days)
until such Filing Failure is cured; (vii) on the thirtieth day after the date of an Effectiveness Failure and every thirtieth
day thereafter (pro rated for periods totaling less than thirty days) until such Effectiveness Failure is cured; and (viii) on
the thirtieth day after the initial date of a Maintenance Failure and every thirtieth day thereafter (pro rated for periods totaling
less than thirty days) until such Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this
Section 2(g) are referred to herein as "Registration Delay Payments."
Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third Business Day after
the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration
Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate of one and one-half percent
(1.5%) per month (prorated for partial months) until paid in full.

 

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3.          Related
Obligations.

 

At such time as the Company
is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its
reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended
method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

(a)          The
Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use
its reasonable best efforts to cause such Registration Statement relating to the Registrable Securities to become
effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep
each Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors
may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to
Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933
Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement
(the "Registration Period"). The Company shall ensure that each Registration Statement (including any amendments
or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses,
in the light of the circumstances in which they were made) not misleading. The term "reasonable best efforts"
shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days after the later of the date
that (i) the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that
the staff has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Legal Counsel
pursuant to Section 3(c) (which approval is immediately sought), a request for acceleration of effectiveness of such Registration
Statement to a time and date not later than two (2) Business Days after the submission of such request. The Company shall respond
in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than
fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in order for a Registration
Statement to be declared effective; provided, that in connection with the Initial Registration Statement, comments with
respect to the financial statements of Inventergy, Inc. or the pro forma financial statements of the Company giving effect to the
Reverse Merger shall have no specified deadline for filing an amendment.

 

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(b)          The
Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration
Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule
424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable
Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have
been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration
Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this
Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q or Form 8-K
or any analogous report under the Securities Exchange Act of 1934, as amended (the "1934 Act"), the Company shall
have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements
with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement
such Registration Statement.

 

(c)          The
Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least five (5) Business Days
prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable
number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto
in a form to which Legal Counsel reasonably objects. The Company shall not submit a request for acceleration of the effectiveness
of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall
not be unreasonably withheld or delayed and no Registration Delay Payments shall accrue in respect of any period in which the Company
is delayed solely because it is waiting for approval of Legal Counsel. The Company shall furnish to Legal Counsel, without charge,
(i) copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration
Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor,
and all exhibits and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration
Statement and all amendments and supplements thereto, to the extent any of such documents are not available on the EDGAR system.
The Company shall reasonably cooperate with Legal Counsel in performing the Company's obligations pursuant to this Section 3.

 

(d)          The
Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge,
(i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s)
thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor,
all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the
prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as
such Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus,
as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities
owned by such Investor, to the extent any of such documents are not available on the EDGAR system.

 

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(e)          The
Company shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification
applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities
or "blue sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions
such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain
such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where
it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and
each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension
of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky"
laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding
for such purpose.

 

(f)          The
Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as practicable after
becoming aware of such event but in any event on the same Trading Day as such event, as a result of which the prospectus included
in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject
to Section 3(r), promptly prepare and file with the SEC a supplement or amendment to such Registration Statement to correct such
untrue statement or omission. The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus
or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective
amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by facsimile
or email on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to a Registration
Statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective
amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City time on the date following the date any
post-effective amendment has become effective, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act
the final prospectus to be used in connection with sales pursuant to such Registration Statement.

 

(g)          The
Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of
a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction
and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment
and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

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(h)         Intentionally
omitted.

 

(i)          If
any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an
Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make available
for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors
(collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents
and properties of the Company (collectively, the "Records"), as shall be reasonably deemed necessary by each Inspector,
and cause the Company's officers, directors and employees to supply all information which any Inspector may reasonably request;
provided, however, that each Inspector shall agree in writing to hold in strict confidence and shall not make any disclosure (except
to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of
which determination the Inspectors are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct
a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records
is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or
(c) the information in such Records has been made generally available to the public other than by disclosure in violation of this
Agreement. Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense,
to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.
Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors'
ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations. The Company
shall have no obligation to disclose publicly, in an amendment to the Registration Statement or otherwise, any confidential information
provided to any Inspector unless the Company determines, in its sole discretion, that such information is required to be disclosed
pursuant to the 1933 Act, and the Company shall have no liability to any Investor who may be unable to thereafter sell any of the
Company’s securities due the Investor’s obtaining any material nonpublic information as a result of such due diligence
investigation. Notwithstanding the immediately preceding sentence, the Company shall not provide any Investor with any material,
nonpublic information without the prior written consent of such Investor. For the avoidance of doubt, with respect to any Investor
that has information barriers in place, the Company acknowledges and agrees that disclosure of material, nonpublic information
to an Inspector in accordance with this Section 3(i) shall not automatically restrict portfolio managers or other employees of
such Investor, who do not have access to such material, nonpublic information, from trading in the Company's securities.

 

    	11

    	 

    

 

(j)          The
Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information
is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information
is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction,
or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement
or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor
is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to
such Investor and allow such Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

 

(k)          The
Company shall use its reasonable best efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement
to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed,
if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure the inclusion
for quotation of all of the Registrable Securities on The NASDAQ Capital Market or (iii) if, despite the Company's reasonable best
efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to use reasonable best efforts to secure
the inclusion for quotation on an Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing,
to use its reasonable best efforts to arrange for at least two market makers to register with the Financial Industry Regulatory
Authority, Inc. ("FINRA") as such with respect to such Registrable Securities. The Company shall pay all fees
and expenses in connection with satisfying its obligation under this Section 3(k).

 

(l)          The
Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities
to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the
case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

 

(m)          If
requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold,
the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering;
(ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to
be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration
Statement if reasonably requested by an Investor holding any Registrable Securities.

 

(n)          The
Company shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

(o)          The
Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after
the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions
of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter
next following the applicable Effective Date of a Registration Statement.

 

    	12

    	 

    

 

(p)          The
Company shall otherwise use its reasonable best efforts to comply with all applicable rules and regulations of the SEC in connection
with any registration hereunder.

 

(q)          Within
two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities
(with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.

 

(r)          Notwithstanding
anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public
information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the Board of Directors
of the Company and its counsel, in the best interest of the Company (a "Grace Period"); provided, that the Company
shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace
Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the
Investors) and the date on which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the
Grace Period ends; and, provided further, that no Grace Period shall exceed five (5) consecutive Trading Days (unless such Grace
Period relates to a material acquisition, in which case the Grace Period shall not exceed twenty (20) consecutive Trading Days)
and during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of twenty (20) Trading
Days (forty-five (45) Trading Days in the case of material acquisitions) and the first day of any Grace Period must be at least
five (5) Trading Days after the last day of any prior Grace Period (each, an "Allowable Grace Period"). For purposes
of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors receive the
notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to
in clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during the
period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the first sentence
of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable.
Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock
to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection with any sale of
Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the Investor's receipt
of the notice of a Grace Period and for which the Investor has not yet settled.

 

    	13

    	 

    

 

(s)          Neither
the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing
with the SEC, the Principal Market or any Eligible Market without the prior written consent of such Investor and any Investor being
deemed an underwriter by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction
Document (as defined in the Securities Purchase Agreement); provided, however, that the foregoing shall not prohibit
the Company from including the disclosure found in the "Plan of Distribution" section attached hereto as Exhibit B
in the Registration Statement. If the SEC requires that an Investor be identified as an underwriter in the Registration Statement,
the Investor shall either so consent, or such Investor’s Registrable Securities shall be omitted from such Registration Statement
without further obligation hereunder by the Company.

 

(t)          Except
with respect to a Registration Rights Agreement dated May 17, 2013 between Inventergy, Inc. and the investors signatory thereto,
which obligations will be assumed by the Company in the Reverse Merger, neither the Company nor any of its Subsidiaries has entered,
as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities, that would have the effect of impairing the rights granted to the Buyers in this Agreement
or otherwise conflicts with the provisions hereof.

 

4.          Obligations
of the Investors.

 

(a)          At
least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify each
Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such
Investor's Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations
of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities of a particular
Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect and
maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with
such registration as the Company may reasonably request.

 

(b)          Each
Investor, by such Investor's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested
by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has
notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities from such
Registration Statement.

 

(c)          Each
Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
3(g) or the first sentence of 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to
any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of copies of the supplemented
or amended prospectus as contemplated by Section 3(g) or the first sentence of 3(f) or receipt of notice that no supplement or
amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended
shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement in connection
with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's
receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence
of 3(f) and for which the Investor has not yet settled.

 

    	14

    	 

    

 

(d)          Each
Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

 

5.          Expenses
of Registration.

 

All reasonable expenses,
other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant
to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company shall not be responsible
for the fees and expenses of Legal Counsel or of any Inspector.

 

6.          Indemnification.

 

In the event any Registrable
Securities are included in a Registration Statement under this Agreement:

 

(a)          To
the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any Investor
within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Person"), against any losses, claims,
damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses,
joint or several (collectively, "Claims"), incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a
party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or
alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction
in which Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission to state
a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement
or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files
any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact
necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses (i) through
(iv) being, collectively, "Violations"). Subject to Section 6(c), the Company shall reimburse the Indemnified
Persons, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company
by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant
to Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the
prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9.

 

    	15

    	 

    

 

(b)          In
connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company,
each of its directors, officers, partners, members, employees, agents, and representatives, and each Person, if any, who controls
the Company within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against any Claim
or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent,
that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor
expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse the
Indemnified Party for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating
or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with
respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided,
further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified
Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

 

    	16

    	 

    

 

(c)          Promptly
after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or
proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall,
if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party
a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent
the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel
with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be paid by the
indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, as the case
may be, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate
due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented
by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding
sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the
Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall reasonably cooperate with
the indemnifying party in connection with any settlement negotiation or defense of any such action or Claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified
Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully
apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party
shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent; provided,
however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party
shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter
into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation and such
settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided
for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect
to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver
written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that
the indemnifying party is prejudiced in its ability to defend such action.

 

(d)          The
indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation
or defense, as and when bills are received or Indemnified Damages are incurred.

 

(e)          The
indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party
or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject
to pursuant to the law.

 

    	17

    	 

    

 

7.          Contribution.

 

To the extent any indemnification
by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect
to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however,
that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved
in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller
of Registrable Securities shall be limited in amount to the amount of net proceeds (sale price less sales commissions) received
by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

 

8.          Reports
Under the 1934 Act.

 

With a view to making
available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the
SEC that may at any time permit the Investors to sell securities of the Company to the public without registration ("Rule
144"), the Company agrees to:

 

(a)          make
and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)          file
with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so
long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

 

(c)          furnish
to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company,
if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other
information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

 

9.          Assignment
of Registration Rights.

 

The rights under this
Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor's Registrable
Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after
such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b)
the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such
transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act
or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause
(ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained
herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement.

 

    	18

    	 

    

 

10.         Amendment
of Registration Rights.

 

Provisions of this Agreement
may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver
that complies with the foregoing but that disproportionately, materially and adversely affects the rights and obligations of any
Investor relative to the comparable rights and obligations of the other Investors shall require the prior written consent of such
adversely affected Investor. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor
and the Company. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Registrable
Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision
of this Agreement unless the same consideration also is offered to all of the parties to this Agreement.

 

11.         Miscellaneous.

 

(a)          A
Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the
same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record
owner of such Registrable Securities.

 

(b)          Any
notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be
in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent
by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party) or by electronic mail; or (iii) one Business Day after deposit with a nationally recognized overnight delivery service,
in each case properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such
communications shall be:

 

If to the Company:

 

eOn Communications Corporation

1703 Sawyer Road

Corinth, MS 38834

		Telephone:	408-694-3339

		Facsimile:	408-996-9722

		Attention:	David Lee, Chairman

		E-mail:	mking@sparktech.com

 

With a copy (for informational
purposes only) to:

 

Baker, Donelson, Bearman, Caldwell & Berkowitz,
PC

First Tennessee Building

165 Madison Avenue

 

    	19

    	 

    

 

Suite 2000

Memphis, Tennessee 38103

		Telephone:	(901) 577-8114

		Facsimile:	(901) 577-0762

		Attention:	Jackie Prester, Esq.

		E-mail:	jprester@bakerdonelson.com

 

If to the Transfer Agent:

 

Computershare Trust Company, N.A.

350 Indiana St. Suite 750

Golden, CO 80401

		Telephone:	(303) 262-0765

		Facsimile:	(303) 262-0610

		Attention:	Adam Burnham

 

If to Legal Counsel:

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

		Telephone:	(212) 756-2000

		Facsimile:	(212) 593-5955

		Attention:	Eleazer Klein, Esq.

		Email:	eleazer.klein@srz.com

 

If to a Buyer, to its address, facsimile
number and/or email address set forth on the Schedule of Buyers attached hereto, with copies to such Buyer's representatives as
set forth on the Schedule of Buyers, or to such other address, facsimile number and/or email address to the attention of such other
Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness
of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication,
(B) mechanically or electronically generated by the sender's facsimile machine or email containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided by a courier or overnight courier service shall be rebuttable
evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

 

(c)          Failure
of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

 

    	20

    	 

    

 

(d)          All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the
State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT
TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

(e)          If
any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent
jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the
broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect
the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or
unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations
of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will
endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s),
the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(f)          This
Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement) and the instruments referenced herein
and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There
are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement,
the other Transaction Documents and the instruments referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

 

(g)          Subject
to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

 

(h)          The
headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

    	21

    	 

    

 

(i)          This
Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(j)          Each
party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver
all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry
out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(k)          All
consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders, determined as if all of the Preferred Shares and Warrants held by Investors
then outstanding have been exercised for Registrable Securities without regard to any limitations on conversion of the Preferred
Shares or exercise of the Warrants.

 

(l)          The
language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

 

(m)         This
Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for
the benefit of, nor may any provision hereof be enforced by, any other Person.

 

(n)          The
obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of
this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein,
and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated herein.

 

* * * * * *

 

[Signature Page Follows]

 

    	22

    	 

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused its respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	EON COMMUNICATIONS CORPORATION
	 	 	 
	 	By:	/s/ David S. Lee
	 	 	Name: David S. Lee
	 	 	Title:   Chairman

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused its respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	BUYERS:
	 	 	 
	 	HUDSON BAY IP OPPORTUNITIES MASTER 

FUND LP
	 	 	 
	 	By: Hudson Bay Capital Management LP, 
 Investment Manager
	 	 	 
	 	By:	/s/ Yoav Roth
	 	 	Name: Yoav Roth
	 	 	Title: Authorized Signatory

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
each Buyer and the Company have caused its respective signature page to this Registration Rights Agreement to be duly executed
as of the date first written above.

 

	 	/s/ Barry C. Honig
	 	Barry C. Honig

 

    	 

    	 

    

 

SCHEDULE OF BUYERS

 

	Buyer
    	 	Buyer
    Address

    and Facsimile Number	 	Buyer's
    Representative's Address 

    and Facsimile Number
	 	 	 	 	 
	Hudson Bay IP Opportunities	 	c/o Hudson Bay Capital Management LP	 	Schulte Roth & Zabel LLP
	Master Fund LP	 	777 Third Ave., 30th Floor	 	919 Third Avenue
	 	 	New York, NY 10017	 	New York, NY 10022
	 	 	Attention: Yoav Roth	 	Attn:  Eleazer Klein, Esq.
	 	 	Facsimile:  (646) 214-7946	 	Facsimile:  (212) 593-5955
	 	 	Telephone: (212) 571-1244	 	Telephone:  (212) 756-2000
	 	 	E-mail: investments@hudsonbaycapital.com	 	Email: Eleazer.Klein@srz.com
	 	 	            operations@hudsonbaycapital.com	 	 
	 	 	 	 	 
	Barry C. Honig	 	215 SE Spanish Trail	 	 
	 	 	Boca Raton, FL 33432	 	 
	 	 	Telephone: 561-235-5379	 	 
	 	 	                    561-302-2287	 	 
	 	 	E-mail: brhonig@aol.com	 	 

 

    	 

    	 

    

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

Computershare Trust Company, N.A.

350 Indiana St. Suite 750

Golden, CO 80401

		Telephone:	(303) 262-0765

		Facsimile:	(303) 262-0610

		Attention:	Adam Burnham

 

		Re:	eOn Communications Corporation

 

Ladies and Gentlemen:

 

We
are counsel to eOn Communications Corporation, a Delaware corporation (the "Company"), and have represented the
Company in connection with that certain Securities Purchase Agreement, dated as of December 17,
2013 (the "Securities Purchase Agreement"), entered into by and among the Company and the buyers named
therein (collectively, the "Holders") pursuant to which the Company issued to the Holders shares of the Company's
Series B Convertible Preferred Stock shares, par value $0.001 per share (the "Preferred Shares") convertible into
the Company's common stock, par value $0.005 per share (the "Common Stock") and warrants exercisable for shares
of Common Stock (the "Warrants"). Pursuant to the Securities Purchase Agreement, the Company also has entered
into a Registration Rights Agreement with the Holders (the "Registration Rights Agreement") pursuant to which
the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon conversion of the Preferred Shares and the shares of Common Stock
issuable upon exercise of the Warrants under the Securities Act of 1933, as amended (the "1933 Act"). In connection
with the Company's obligations under the Registration Rights Agreement, on ____________ ___, 2013, the Company filed a Registration
Statement on Form S-3 (File No. 333-_____________) (the "Registration Statement") with the Securities and Exchange
Commission (the "SEC") relating to the Registrable Securities which names each of the Holders as a selling stockholder
thereunder.

 

In connection with the
foregoing, we advise you that a member of the SEC's staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF
EFFECTIVENESS] and we have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending
its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the
Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

 

Based
on the foregoing, we are of the opinion that the shares of Common Stock are freely transferable by the Holders without legend or
other restrictions pursuant to the Registration Statement. You need not require further letters from us or any confirmation of
sale letters from Holder to effect any future legend-free issuance or reissuance of shares of Common Stock to the Holders as contemplated
by the Company's Irrevocable Transfer Agent Instructions dated December 17, 2013.

 

    	A-1

    	 

    

 

	 	Very truly yours,
	 	 	 
	 	[ISSUER'S COUNSEL]
	 	 	 
	 	By:	          

 

		CC:	[LIST NAMES OF HOLDERS]

 

    	A-2

    	 

    

 

EXHIBIT B

 

SELLING STOCKHOLDERS

 

The shares of common
stock being offered by the selling stockholders are those issuable upon conversion of the convertible preferred shares and upon
exercise of the warrants. For additional information regarding the issuances of the convertible preferred shares and the warrants,
see "Private Placement of the Convertible Preferred Shares and Warrants" above. We are registering the shares of common
stock in order to permit the selling stockholders to offer the shares for resale from time to time. Except for the ownership of
the convertible preferred shares and the warrants, the selling stockholders have not had any material relationship with us within
the past three years.

 

The table below lists
the selling stockholders and other information regarding the beneficial ownership of the shares of common stock by each of the
selling stockholders. The second column lists the number of shares of common stock beneficially owned by each selling stockholder,
based on its ownership of the shares of the convertible preferred shares and the warrants, as of ________, 2013, assuming conversion
of all convertible preferred shares and exercise of the warrants held by the selling stockholders on that date, without regard
to any limitations on conversions and/or redemptions of the convertible preferred shares or exercises of the warrants.

 

The third column lists
the shares of common stock being offered by this prospectus by the selling stockholders.

 

In accordance with
the terms of a registration rights agreement with the holders of the convertible preferred shares and the warrants, this prospectus
generally covers the resale of at least a number of shares of Common Stock equal to 20% of the number of shares of Common Stock
issued and outstanding as of December 16, 2013. The fourth column assumes the sale of all of the shares offered by the selling
stockholders pursuant to this prospectus.

 

Under the terms of
the convertible preferred shares and the warrants, a selling stockholder may not convert the convertible preferred shares or exercise
the warrants, to the extent such conversion or exercise would cause such selling stockholder, together with its affiliates, to
beneficially own a number of shares of common stock which would exceed 4.99% of our then outstanding shares of common stock following
such conversion or exercise, excluding for purposes of such determination shares of common stock issuable upon conversion of the
convertible preferred shares which have not been converted and upon exercise of the warrants which have not been exercised. The
number of shares in the second column does not reflect this limitation. The selling stockholders may sell all, some or none of
their shares in this offering. See "Plan of Distribution."

 

    	Annex I-1

    	 

    

 

	Name of Selling stockholder	 	Number of Shares of

    Common Stock Owned
 Prior to Offering	 	 	Maximum Number of Shares

    of Common Stock to be Sold
 Pursuant to this Prospectus	 	 	Number of Shares of

    Common Stock Owned
 After Offering	 
	 	 	 	 	 	 	 	 	 	 
	Hudson Bay IP Opportunities Master 

Fund LP (1)	 	 	       	 	 	 	       	 	 	 	0	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barry Honig	 	 	 	 	 	 	 	 	 	 	 	 

 

(1)         Hudson
Bay Capital Management LP, the investment manager of Hudson Bay IP Opportunities Master Fund LP, has voting and investment power
over these securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson
Bay Capital Management LP. Each of Hudson Bay IP Opportunities Master Fund LP and Sander Gerber disclaims beneficial ownership
over these securities.

 

(2)

 

    	Annex I-2

    	 

    

 

PLAN OF DISTRIBUTION

 

We are registering
the shares of common stock issuable upon conversion of the convertible preferred shares and the shares of common stock issuable
upon exercise of the warrants to permit the resale of these shares of common stock by the holders of the convertible preferred
shares and warrants from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale
by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident to our obligation to register
the shares of common stock.

 

The selling stockholders
may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers,
the selling stockholders will be responsible for underwriting discounts or commissions or agent's commissions. The shares of common
stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying
prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve
crosses or block transactions,

 

		·	on any national securities exchange or quotation service on which the securities may be listed
or quoted at the time of sale;

 

		·	in the over-the-counter market;

 

		·	in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

 

		·	through the writing of options, whether such options are listed on an options exchange or otherwise;

 

		·	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

 

		·	block trades in which the broker-dealer will attempt to sell the shares as agent but may position
and resell a portion of the block as principal to facilitate the transaction;

 

		·	purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

 

		·	an exchange distribution in accordance with the rules of the applicable exchange;

 

		·	privately negotiated transactions;

 

		·	short sales;

 

		·	sales pursuant to Rule 144;

 

    	Annex I-3

    	 

    

 

		·	broker-dealers may agree with the selling securityholders to sell a specified number of such shares
at a stipulated price per share;

 

		·	a combination of any such methods of sale; and

 

		·	any other method permitted pursuant to applicable law.

 

If the selling stockholders
effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters,
broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders
or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those
customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling
stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of
common stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short
and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection
with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may
sell such shares.

 

The selling stockholders
may pledge or grant a security interest in some or all of the convertible preferred shares or warrants or shares of common stock
owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and
sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders
to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders
also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees
or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The selling stockholders
and any broker-dealer participating in the distribution of the shares of common stock may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares
of common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of
shares of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents,
any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions
or concessions allowed or reallowed or paid to broker-dealers.

 

Under the securities
laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for
sale in such state or an exemption from registration or qualification is available and is complied with.

 

    	Annex I-4

    	 

    

 

There can be no assurance
that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement,
of which this prospectus forms a part.

 

The selling stockholders
and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act,
which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other
participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common
stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability
of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the
shares of common stock.

 

We will pay all expenses
of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[     ]
in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities
or "blue sky" laws; provided, however, that a selling stockholder will pay all underwriting discounts and selling commissions,
if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act, in
accordance with the registration rights agreements, or the selling stockholders will be entitled to contribution. We may be indemnified
by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any
written information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the
related registration rights agreement, or we may be entitled to contribution.

 

Once sold under the
registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands
of persons other than our affiliates.

 

    	Annex I-5AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This EXECUTIVE EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into as of December 17, 2013, by and between Measurement Specialties,
Inc., a New Jersey corporation with corporate offices located in Hampton, Virginia (the “Employer”), and Frank
D. Guidone (the “Executive”). The Employer and the Executive are sometimes individually referred to herein
as a “Party” or collectively referred to herein as the “Parties.”

 

WHEREAS, Employer
desires to continue to employ Executive and Executive desires to continue such employment, pursuant to the terms and conditions
set forth herein;

 

WHEREAS, the Executive
is party to an Amended and Restated Executive Employment Agreement dated November 6, 2007 with the Employer, as amended by an
Amendment to Employment Agreement dated June 6, 2011 (the “Original Employment Agreement”);

 

WHEREAS, the Parties
agree that offering and entering into this Agreement shall not constitute grounds for a termination of the Executive Without Cause
by the Employer under 9(c) of the Original Employment Agreement or a termination for Good Reason by the Executive under Section
9(c) of the Original Employment Agreement;

 

WHEREAS, the Parties
desire to supersede and replace the Original Employment Agreement, as amended, in its entirety; and

 

NOW THEREFORE, in
consideration of the premises and mutual covenants and obligations hereinafter set forth, and for other good and valuable consideration,
the sufficiency and adequacy of which are hereby acknowledged, and intending to be legally bound hereby, the Employer and the
Executive hereby agree as follows:

 

1. Effective
Date and Employment Term.

 

(a)           Effective
Date. Subject to the provisions of Section 3(a) hereof, this Agreement shall be effective as of December 17, 2013 (the “Effective
Date”).

 

(b)           Employment
At Will. This Agreement shall be effective and the Executive’s employment under this Agreement shall commence on the
Effective Date. The Executive is an at-will employee of the Employer and, subject to the requirements of Section 4, either Party
may terminate the Executive’s employment at any time. Termination of the Executive’s employment shall not terminate
the obligations of either Party and, in particular, the Executive’s obligations under Sections 5 and 6 of this Agreement
shall survive termination of Executive’s employment by either Party. This Agreement shall continue in effect until and unless
amended or terminated pursuant to Section 4 (the period commencing on the Effective Date and ending on the effective date
of termination of employment, hereinafter, the “Employment Term”).

 

    	 

    	 

    

 

(c)           Prior
Agreements. This Agreement shall supersede and replace any prior agreement relating to Executive’s employment by the
Employer except to the extent specifically provided herein.

 

(d)           Representations
and Warranties. The Executive hereby represents and warrants to Employer that he is not a party to, or obligated by, any restrictive
covenant or any other obligation or agreement that would in any way prevent, restrict, hinder, or interfere with Executive’s
acceptance of employment under the terms and conditions set forth herein, the performance of his obligations under this Agreement,
or his ability to render services to Employer or its affiliates. The Executive understands and acknowledges that he is not expected
or permitted to use or disclose confidential information belonging to any prior employer in the course of performing his duties
for the Employer.

 

2. Position,
Duties, Reporting, Operations and Other Activities.

 

(a)           Position
and Duties. The Employer hereby continues to employ the Executive and the Executive hereby accepts continued employment with
the Employer to serve as Chief Executive Officer and President. Executive shall perform the services and duties attendant to such
offices, including such services and duties as set forth herein or in the Bylaws of the Employer, subject in all respects to the
direction and supervision of the the Board of Directors of the Employer (the “Board”), provided that such services
and duties are consistent with the normal and customary responsibilities of an officer of the Employer and that Executive retains
the title of Chief Executive Officer and President. As Chief Executive Officer and President, the Executive shall report directly
to the Board. The Executive shall serve the Employer faithfully and diligently and shall devote his full professional time and
attention (except for paid time off, sick leave, and other excused leaves of absence) to the performance of his services under
this Agreement. The Executive shall at all times act in good faith and in the interests of the Employer and its affiliates.

 

(b)          Other
Activities. Except upon the prior approval of the Employer, during Executive’s employment under this Agreement, the
Executive will not: (i) accept any other employment; (ii) accept any position as a director or officer of any business or organization
other than the Employer and its affiliates (other than positions with a reasonable number of charitable organizations) or (iii)
engage, directly or indirectly, in any other business activity (whether or not pursued for pecuniary advantage) that is competitive
with, or that places him or any other business or company in a competing position to, the Employer and its affiliates.

 

(c)          Place
of Employment. The principal work location of the Executive's employment shall be the Executive’s home currently located
in Dallas, Texas, with a secondary office location at the Employer’s principal executive office in Hampton, Virginia; provided
that, the Executive may be required to travel on Employer business during the Employment Term.

 

(d)          Employer
Policies. Executive shall be subject to and shall comply with all codes of conduct, personnel policies and procedures applicable
to employees and/or senior executives of the Employer, including, without limitation, policies regarding sexual harassment, conflicts
of interest and insider trading.

 

    	-2-

    	 

    

 

3. Compensation
and Other Benefits.

 

(a)           Compensation.
In consideration of the services to be rendered by the Executive during the Employment Term, the Employer shall pay to the Executive,
and the Executive agrees to accept from the Employer, a salary at a rate of $550,000 per year (the “Salary”),
payable in accordance with the Employer’s payroll practices in effect during the Employee’s employment. The Board
or Compensation Committee of the Board (the “Compensation Committee”) shall review the Salary on an annual
basis and consider, at its discretion, any increases therein.

 

(b)           Incentive
Compensation. For each fiscal year during the Employment Term, the Executive shall be eligible to earn an annual target cash
incentive award under the Employer’s performance incentive plan of 100% of his Salary based upon annual performance criteria
and goals established by the Compensation Committee (the “Annual Bonus”). The extent to which a cash incentive
award is earned by the Executive for a fiscal year shall be determined in the sole discretion of the Compensation Committee consistent
with the terms and procedures set forth in the Employer’s performance incentive plan. Payments, if any, with respect to
a cash incentive award shall generally be made to the Executive in cash as soon as administratively practicable following the
date of the final certification or determination by the Compensation Committee or, if applicable, following satisfaction of the
relevant vesting condition, but, in any event, no later than the date that is two and one-half months after the later of (i) the
close of the Employer’s fiscal year in which the performance period ended or (ii) the close of the Employer’s
fiscal year in which the relevant vesting condition, if any, has been satisfied.

 

(c)           Expenses.
The Employer shall reimburse the Executive for reasonable travel and other business expenses (“Business Expenses”),
which are properly documented and consistent with the Employer’s expense policies (to include business class airfare for
international travel as appropriate), incurred by the Executive in the performance of his duties hereunder in accordance with
the Employer’s general policies, as they may be amended from time to time during the course of this Agreement.

 

(d)           Other
Benefits.  During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans,
practices and programs maintained by the Employer or any affiliated entity in which employees of the Employer at the Executive
Officer level are entitled to participate, as in effect from time to time (collectively, “Employee Benefit Plans”),
on a basis which is no less favorable than is provided to other similarly situated executives of the Employer, to the extent consistent
with applicable law and the terms of the applicable Employee Benefit Plans, except as otherwise provided herein. For purposes
of this Agreement, the term “Executive Officer” shall mean the Employer’s Chief Executive Officer and
those officers holding positions that report directly to the Employer’s Chief Executive Officer. The Employer or, as applicable,
the affiliated entity that sponsors or maintains an Employee Benefit Plan reserves the right to amend or cancel any Employee Benefit
Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law. During his employment,
the Executive shall be entitled to fringe benefits and perquisites consistent with the practices of the Employer for similarly
situated executives of the Employer, except as otherwise provided herein. During each calendar year of employment, the Executive
may take up to six (6) weeks of paid time off (“PTO”) per calendar year (prorated for partial years), at such
times as are determined to be mutually convenient to the Employer and the Executive; provided, however, that Executive understands
and agrees that PTO will not accrue over the course of the year, there will be no PTO to carry over from year-to-year, and there
will be no accrued but unused PTO to be paid out at termination.

 

    	-3-

    	 

    

 

(e)          Recoupment.
Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation,
paid to the Executive pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery
under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback or
recoupment as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or
any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement) and the
Executive agrees to cooperate and take all steps reasonably necessary to effectuate such deduction, clawback or recoupment.

 

4. Termination of Employment.

 

(a)           By
Death.

 

(1)        If
the Executive dies prior to the termination of his employment, the Employer will pay to his estate in a lump sum, within thirty
(30) days of his death: (i) the sum of (A) the amount of Executive’s Salary accrued through the date of termination, (B)
any outstanding business expenses that were incurred by Executive prior to the date of termination but not reimbursed as of such
date, and (C) any Annual Bonus earned in the prior completed fiscal year that has been accrued but not yet paid as of the date
of termination of employment (together, the “Accrued Rights”); and (ii) a pro-rata portion of the target Annual
Bonus for the fiscal year of termination, the amount of which will be determined by multiplying such target Annual Bonus by a
fraction, the numerator of which is the number of days during the fiscal year of Executive’s termination before the date
of termination, and the denominator of which is three hundred sixty-five (365). In addition, for twelve (12) months following
the Executive’s death, the Employer shall pay to the Executive’s eligible dependents a monthly amount before the end
each calendar month equal to the difference between the monthly cost of health and dental benefits continuation coverage under
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for the Executive’s
eligible dependents (assuming that the Executive’s eligible dependents elect to continue and are eligible for such coverage),
less the monthly amount that the Executive would have been required to contribute for health and dental coverage for the Executive’s
eligible dependents if the Executive were still an active employee and Executive Officer of the Employer. Thereafter, the Employer’s
obligations hereunder shall terminate.

 

(2) Upon the
Executive’s death, all outstanding unvested time-based and/or performance-based equity awards held by the Executive shall
become fully vested as of the date of death.

 

    	-4-

    	 

    

 

(b)           By
Disability.

 

(1)       To
the extent permissible under applicable law, in the event the Executive becomes Permanently Disabled during employment with the
Employer, the Employer may terminate this Agreement by giving thirty (30) days’ notice to the Executive of its intent to
terminate, and unless the Executive resumes performance of his duties within five (5) days of the date of the notice and continues
performance for the remainder of the notice period, this Agreement shall terminate at the end of the thirty (30) day notice period.
For the purposes of this Agreement, the Executive shall be deemed “Permanently Disabled” when the Board determines,
in good faith, that the Executive has suffered a physical or mental disability that prevents the Executive from performing the
essential duties of his position with reasonable accommodations as may be required by law: (i) for a period of ninety (90) consecutive
calendar days; or (ii) for an aggregate of one hundred twenty (120) business days in any twelve (12) month period. In the event
of any dispute under this Section, the Executive shall submit to a physical examination by a licensed physician mutually satisfactory
to the Employer and the Executive, the cost of such examination to be paid by the Employer, and the determination of such physician
shall be determinative.

 

(2)       In
the event of such termination for Permanent Disability, the Employer shall pay to the Executive in a lump sum, within ten (10)
business days of his termination: (i) the Accrued Rights; and (ii) a pro-rata portion of the target Annual Bonus for the fiscal
year of termination, the amount of which will be determined by multiplying such target Annual Bonus by a fraction, the numerator
of which is the number of days during the fiscal year of Executive’s termination before the date of termination, and the
denominator of which is three hundred sixty-five (365). In addition, for twelve (12) months following the termination of the Executive’s
employment for Permanent Disability, the Employer shall pay to the Executive a monthly amount before the end each calendar month
equal to the difference between the monthly cost of health and dental benefits continuation coverage under COBRA for the Executive
and his eligible dependents (assuming coverage eligibility and timely election to continue coverage), less the monthly amount
that the Executive would be required to contribute for health and dental coverage for the Executive and his eligible dependents
if the Executive were still an active employee and Executive Officer of the Employer. Thereafter the Employer’s obligations
hereunder shall terminate.

 

(3)       Upon
the termination of the Executive’s employment for Permanent Disability, all outstanding unvested time-based and/or performance-based
equity awards held by the Executive shall become fully vested as of the date of termination of employment.

 

(4)       Following
the termination of the Executive’s employment for Permanent Disability, Executive shall be entitled to receive any benefits
for which he then qualifies under the Employer’s disability insurance program in which he participates.

 

    	-5-

    	 

    

 

(c)           By
the Executive for Good Reason; by the Employer Other Than For Cause.

 

(1)       The
Executive may terminate, without liability, his employment for Good Reason (as defined below) upon advance written notice of thirty
(30) calendar days to the Employer; and the Employer may terminate the Executive’s employment Other Than For Cause (as defined
below) upon advance written notice of thirty (30) days to the Executive. Upon a termination of Executive’s employment Other
Than For Cause or for Good Reason, subject to satisfaction of the conditions set forth in Section 4(c)(2), Executive shall be
entitled to receive from the Employer the following sums, each payable within the time frame set forth herein: (i) the Accrued
Rights payable in a lump sum within twenty (20) business days after the date of termination; (ii) an amount equal to 150% of Executive’s
Annual Salary as in effect at the date of termination, to be paid in a lump sum within twenty (20) business days following the
effective time of the Release required by Section 4(c)(2) (the “Severance Payment”); (iii) a pro-rata
portion of the Annual Bonus earned for the fiscal year of termination, the amount of which will be the amount determined by the
Compensation Committee based on actual performance of the Employer and the Executive for the fiscal year, multiplied by a fraction,
the numerator of which is the number of days during the fiscal year of Executive’s termination before the date of termination,
and the denominator of which is three hundred sixty-five (365), to be paid in a lump sum as soon as practicable after determination
of the Annual Bonus consistent with the Employer’s normal bonus determination practices but not later than the 15th day
of the third month following the end of the Employer’s fiscal year to which the bonus relates (the “Termination
Year Bonus”); (iv) full vesting of all outstanding unvested equity awards held by the Executive as of his date
of termination with respect to which the vesting is conditioned solely upon continued service for a specified period (including,
without limitation, any outstanding performance-based equity awards with respect to which all performance conditions have been
satisfied in full as of the employment termination date but vesting therein remains conditioned thereafter upon continued service
for a specified period) (the “Equity Acceleration”); and (v) for twelve (12) months following the effective
date of the Release, the Employer shall pay to the Executive a monthly amount before the end each calendar month equal to the
difference between the monthly cost of health and dental benefits continuation coverage under COBRA for the Executive and his
eligible dependents (assuming coverage eligibility and timely election of COBRA coverage), less the monthly amount that the Executive
would be required to contribute for health and dental coverage for the Executive and his eligible dependents if the Executive
were still an active employee and Executive Officer of the Employer (the “COBRA Continuation Payments”). Thereafter,
except as specifically excluded from the Release (as hereinafter defined), the Employer’s obligations hereunder shall terminate.

 

(2)       The
Severance Payment, the Termination Year Bonus, the Equity Acceleration, and the COBRA Continuation Payments provided for in Section
4(c)(1) and 4(c)(3) are each contingent on (i) the receipt by the Employer of a general release of claims executed by the Executive
in substantially the form attached as Exhibit A subject to such revisions as the Employer in its discretion may consider
appropriate to protect its interests under then-current law (the “Release”)(which Release is to be executed
and delivered by the Executive following Executive’s termination), and (ii) the lapse of the seven day revocation period
set forth in the Release without receipt by the Employer of a notice of revocation. The Executive acknowledges that to the extent
the Employer does not receive the Release executed by Executive on or within the time specified in the Release or if the Release
is revoked by the Executive, the Executive shall not be entitled to the Severance Payment, the Termination Year Bonus, the Equity
Acceleration, or the COBRA Continuation Payments. The Executive acknowledges and agrees that, to the extent he delivers the Release
and accepts the payments and benefits provided for in Section 4(c)(1) or 4(c)(3), the payments and benefits provided for in Section
4(c)(1) or 4(c)(3), as applicable, are the sole and exclusive remedies of the Executive against the Employer and its affiliates
if the employment of the Executive is terminated pursuant to this Section 4(c); provided, however, that the Executive
shall retain all of the claims excluded in the Release. To the extent necessary to comply with Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”), if the period during which the Executive has discretion to execute or
revoke the Release straddles two taxable years of the Executive, then the Employer shall make the payments and benefits specified
in Section 4(c)(1) or 4(c)(3), as applicable, other than the payment of the Accrued Rights, starting in the second of such taxable
years, regardless of in which taxable year the Executive actually delivers the executed Release to the Employer.

 

    	-6-

    	 

    

 

(3)           In
the event that the Executive’s employment is terminated by the Employer Other Than For Cause or by the Executive for Good
Reason, in either case coincidental with or within twenty-four (24) months after a Change in Control (as defined below), then
subject to satisfaction of the conditions set forth in Section 4(c)(2) and in lieu of the payments and benefits set forth in Section
4(c)(1), the Executive shall be entitled to receive from the Employer the following sums, each payable within the time frame set
forth herein: (i) the Accrued Rights payable in a lump sum within twenty (20) business days after the date of termination;
(ii) a Severance Payment in an amount equal to 200% of the sum of (A) the Executive’s Annual Salary as in effect at
the date of termination plus (B) the target Annual Bonus for the fiscal year in which the employment termination occurs,
to be paid in a lump sum within twenty (20) business days following the effective time of the Release required by Section 4(c)(2);
(iii) a Termination Year Bonus the amount of which shall be a pro-rata portion of the target Annual Bonus for the fiscal
year of termination, determined by multiplying the Executive’s target Annual Bonus for such fiscal year by a fraction, the
numerator of which is the number of days during the fiscal year of Executive’s termination before the date of termination,
and the denominator of which is three hundred sixty-five (365), to be paid in a lump sum within twenty (20) business days following
the effective time of the Release; (iv) Equity Acceleration that results in full vesting of all outstanding unvested equity
awards held by the Executive as of his date of termination (including, without limitation, any outstanding performance-based equity
awards with respect to which the relevant performance period has not concluded prior to the date of termination of employment);
and (v) COBRA Continuation Payments for eighteen (18) months following the effective date of the Release (assuming coverage
eligibility and timely election of COBRA coverage). Thereafter, except as specifically excluded from the Release (as hereinafter
defined), the Employer’s obligations hereunder shall terminate.

 

(4)           For
purposes of this Agreement, “Change in Control” means (i) any liquidation, dissolution or winding-up of the
Employer, whether voluntary or involuntary; (ii) any merger, consolidation, conversion transaction or reorganization of the Employer
with or into any other entity or entities that results in the conversion or exchange of outstanding Common Stock (or any securities
into which such Common Stock may be converted or exchanged) of the Employer for securities issued or other consideration paid
or caused to be issued or paid by any such entity or affiliate thereof (other than a merger of the Employer with or into another
entity that does not result in the holders of Common Stock immediately prior to the consummation of such transaction ceasing to
own a majority of the voting securities of the entity surviving or resulting from the merger); or (iii) any sale, transfer or
disposition of all or substantially all of the property or assets of the Employer. For purposes of the immediately preceding sentence,
sale, transfer or disposition of substantially all of the property or assets of the Employer shall mean the sale of property or
assets, in a single transaction or a series of related transactions, having a value in excess of 50% of the value of assets reflected
on the balance sheet of the Employer immediately prior to the first such sale.

 

    	-7-

    	 

    

 

(5)           For
the purposes of this Agreement, “Good Reason” shall exist for a period of thirty (30) calendar days after the
Executive has given the Employer notice of the occurrence of any of the following events and an opportunity to cure such default
within ten (10) calendar days of receipt of such notice: (i) the Employer is in default of any material obligations under this
Agreement; (ii) there is any material diminution in the title, job responsibilities, authority, powers or duties of the Executive,
provided, however, that a change in the Executive’s reporting structure shall not constitute a diminution of the Executive’s
title, job responsibilities, authority, powers or duties; (iii) without the Executive’s consent, the Executive’s principal
place of employment is relocated beyond forty (40) miles from Dallas, Texas; or (iv) there is any reduction of Executive’s
target Annual Bonus percentage. If the Executive elects not to terminate his employment within thirty (30) calendar days after
the occurrence of any event specified above, the Executive shall be deemed to have consented to the occurrence of such event and
any subsequent termination by the Executive of his employment which he claims to be the result thereof shall nonetheless be deemed
a termination by the Executive other than for Good Reason.

 

(6)           For
purposes of this Agreement, “Other Than For Cause” shall mean any termination by the Employer of the Executive’s
employment other than pursuant to Section 4(a), 4(b), or 4(e).

 

(d)               By
the Executive other than for Good Reason. If the Executive terminates his employment for any reason other than for Good Reason
then all the Employer’s obligations hereunder shall immediately terminate, except that the Employer shall pay to the Executive
in a lump sum, within ten (10) business days after the date of termination, the Accrued Rights.

 

(e)               By
the Employer for Cause.

 

(1)           If
the Employer terminates the Executive’s employment for Cause, then all of the Employer’s obligations hereunder shall
immediately terminate, except that the Employer shall pay to the Executive, within ten (10) business days after the date of termination,
the Accrued Rights.

 

    	-8-

    	 

    

 

(2)          For
purposes of this Agreement, “Cause ” shall mean: (i) any act or omission that constitutes a material breach
by the Executive of any of his obligations under this Agreement or any material written policy of the Employer or any of its affiliates,
assuming such obligations are lawful, which is not remedied within thirty (30) calendar days following written notice to the Executive
from the Board of the event and action required to remedy the same; (ii) the failure or refusal by the Executive to follow any
lawful reasonable direction of the Board that is material and is consistent with the Executive’s obligations under this
Agreement which is not remedied within thirty (30) calendar days following written notice to the Executive from the Board of the
event and action required to remedy the same; (iii) the Executive’s willful neglect or refusal to discharge his duties pursuant
to this Agreement, assuming such duties are lawful, which continues for a period of thirty (30) days following written notice
thereof to the Executive from the Board; or (iv) the conviction of the Executive (including a nolo contendere or guilty
plea) of a felony or a crime involving fraud, moral turpitude, misappropriation, or dishonesty. No act or failure on Executive’s
part shall be considered “willful” unless it is done, or omitted to be done by Executive, in bad faith or without
reasonable belief that Executive’s action or omission was in the best interests of the Employer. Any act, or failure to
act, based upon authority given pursuant to a specific resolution duly adopted by the Board or based upon the advice of counsel
for the Employer shall be conclusively presumed to be done, or omitted to be done, by Executive in good faith and in the best
interests of the Employer.

 

(3)           Notwithstanding
the foregoing, the Employer may not terminate Executive’s employment for Cause until: (A) Executive has been afforded the
opportunity to appear before the Board, with or without legal representation, to address the Board-stated reason for termination,
(B) the affirmative vote of the majority of the Board members (excluding the Executive if he is a member of the Board, and any
other member of the Board reasonably believed by the Board to be involved in the events leading the Board to terminate Executive’s
employment for Cause) agreeing that the actions or inactions of the Executive, as specified in the notice of termination occurred,
that such actions or inactions constitute Cause, and that the employment of Executive should, accordingly, be terminated for Cause,
and (C) the Board provides Executive with a written determination setting forth the specific details that form the basis of such
termination.

 

(f)          Resignation
Of All Other Positions. Upon termination of the Executive's employment hereunder for any reason, the Executive shall be deemed
to have resigned from all positions that the Executive holds as an officer of the Employer or any of its affiliates.

 

(g)          Cooperation
In Future Matters. The Employer and Executive agree that certain matters in which the Executive will be involved during the
Employment Term may necessitate the Executive's cooperation in the future. Accordingly, following the termination of the Executive's
employment for any reason, to the extent reasonably requested by the Employer, the Executive shall cooperate with the Employer
in connection with matters arising out of the Executive's service to the Employer, including, without limitation, providing information
of limited consultation as to such matters, participating in legal proceedings, investigations or audits on behalf of the Employer,
or otherwise making himself reasonably available to the Employer for other related purposes; provided that the Employer shall
make reasonable efforts to minimize disruption of the Executive's other activities. The Employer shall reimburse the Executive
for reasonable expenses incurred in connection with such cooperation and, to the extent that the Executive is required to spend
substantial time on such matters, the Employer shall compensate the Executive at an hourly rate based on the Executive's Base
Salary as in effect as of his termination date.

 

    	-9-

    	 

    

 

5. Proprietary
Information.

 

(a)           Defined.
For purposes of this Agreement, “Proprietary Information” shall mean all proprietary, secret or confidential
information pertaining to the business and affairs of the Employer and its respective affiliates (whether or not such information
is in written form). Without limiting the generality of the foregoing, Proprietary Information shall include: (i) client lists,
lists of potential clients and details of agreements with clients; (ii) acquisition, expansion, marketing, financial and other
business information, projections and plans; (iii) research and development; (iv) computer programs and computer software; (v)
sources of supplies and supplier lists; (vi) identity of specialized consultants and contractors and Proprietary Information that
is developed or learned by the Executive in the course of his relations with the Employer and its affiliates; (vii) purchasing,
operating and other cost data; (viii) special client needs, cost and pricing data; (ix) employee information; (x) all Proprietary
Rights; and (xi) all data, concepts, ideas, findings, discoveries, developments, programs, designs, inventions, improvements,
methods, practices and techniques, whether or not patentable, relating to present and planned future activities and the products
and services of the Employer and their respective affiliates. For purposes of this Agreement, “Proprietary Rights”
shall mean the following: (A) any and all patents and patent applications (including all provisional, divisions, continuations,
continuations in part, and reissues), patentable inventions, and business methods; (B) all registered and unregistered fictional
business names, trade names, trademarks, service marks, and registered domain names and all applications with respect to any of
the foregoing; (C) registered and unregistered copyrights in both published works and unpublished works and copyrightable subject
matter, including software; and (D) all know-how, trade secrets, customer lists, confidential information, technical information,
data, process technology, plans, drawings, and blueprints. Proprietary Information also includes information recorded in manuals,
memoranda, projections, minutes, plans, drawings, designs, formula books, specifications, computer programs and records, whether
or not legended or otherwise identified as Proprietary Information, as well as information that is the subject of meetings and
discussions and not so recorded. Proprietary Information shall not, however, include any information (X) that is or becomes generally
available to the public other than as a result of disclosure by the Executive, (Y) that was or becomes available to the Executive
on a non-confidential basis from a third party, which source is not bound by a confidentiality agreement or other duty of confidentiality
with respect to such Proprietary Information, or (Z) where the disclosure was specifically authorized in writing by the Employer.
In the event that the Executive becomes legally compelled (by oral questions, interrogatories, requests for information or documents,
subpoena, criminal or civil investigative demand or other legal process or requirement) to disclose any Proprietary Information,
the Executive shall be entitled to disclose any Proprietary Information he is legally compelled to disclose and will provide the
Employer with prompt written notice of such request or requirement so that the Employer, at the Employer’s expense, may
seek a protective order or other appropriate remedy or relief and/or waive compliance with the provisions of this Agreement prior
to such disclosure and consult with the Executive to a reasonable extent on the advisability of taking steps to resist or narrow
the scope of such request or requirement.

 

    	-10-

    	 

    

 

(b)           General
Restrictions on Use. The Executive agrees to hold all Proprietary Information in strict confidence and trust for the sole
benefit of the Employer and its affiliates, as the case may be, or, with regard to Proprietary Information that is the property
of a customer or client of the Employer, for the sole benefit of such entity, and to not, directly or indirectly, disclose, use,
copy, publish, summarize, or remove from the premises of the Employer or its affiliates, without the prior written consent of
the Employer, any Proprietary Information except during employment to the extent necessary to carry out the Executive’s
responsibilities under this Agreement.

 

6. Intellectual
Property.

 

(a)           Disclosure
of Inventions. Executive will promptly disclose in confidence to the Employer all inventions, improvements, processes, products,
designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, Internet products
and services, e-commerce products and services, e-entertainment products and services, databases, mask works, trade secrets, product
improvements, product ideas, new products, discoveries, methods, software, uniform resource locators or proposed uniform resource
locators (“URLs”), domain names or proposed domain names, any trade names, trademarks or slogans, which may or may
not be subject to or able to be patented, copyrighted, registered, or otherwise protected by law (the “Inventions”)
that Executive makes, conceives or first reduces to practice or create, either alone or jointly with others, during the period
of his employment, whether or not in the course of his employment, and whether or not such Inventions are patentable, copyrightable
or able to be protected as trade secrets, or otherwise able to be registered or protected by law.

 

(b)           Work
for Hire; Assignment of Inventions. Executive acknowledges and agrees that any copyrightable works prepared by him within
the scope of his employment are “works for hire” under the Copyright Act and that the Employer will be considered
the author and owner of such copyrightable works. Executive agrees that all Inventions that (i) are developed using equipment,
supplies, facilities or trade secrets of the Employer, (ii) result from work performed by him for the Employer, or (iii) relate
to the Employer’s business or current or anticipated research and development, will be the sole and exclusive property of
the Employer and are hereby irrevocably assigned by Executive to the Employer from the moment of their creation and fixation in
tangible media.

 

(c)           Assignment
of Other Rights. In addition to the foregoing assignment of Inventions to the Employer, Executive hereby irrevocably transfers
and assigns to the Employer: (i) all worldwide patents, patent applications, copyrights, mask works, trade secrets and other intellectual
property rights in any Invention; and (ii) any and all “Moral Rights” (as defined below) that Executive may have in
or with respect to any Invention. Executive also hereby forever waives and agrees never to assert any and all Moral Rights Executive
may have in or with respect to any Invention, even after termination of his work on behalf of the Employer. “Moral
Rights” means any rights to claim authorship of an Invention, to object to or prevent the modification of any Invention,
or to withdraw from circulation or control the publication or distribution of any Invention, and any similar right, existing under
judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right is denominated
or generally referred to as a “moral right.”

 

    	-11-

    	 

    

 

(d)           Assistance.
Executive agrees to assist the Employer in every proper way to obtain for the Employer and enforce patents, copyrights, mask work
rights, trade secret rights and other legal protections for the Employer’s Inventions in any and all countries. Executive
will execute any documents that the Employer may reasonably request for use in obtaining or enforcing such patents, copyrights,
mask work rights, trade secrets and other legal protections. His obligations under this section will continue beyond the termination
of his employment with the Employer, provided that the Employer will compensate him at a reasonable rate after such termination
for time or expenses actually spent by him at the Employer’s request on such assistance. Executive appoints the Secretary
of the Employer as his attorney-in-fact to execute documents on his behalf for this purpose.

 

7. Restrictive
Covenants.

 

(a)           Non-Competition.
During Executive’s employment with Employer and for a period of (2) years following the termination thereof for any reason
(the “Restricted Period”), the Executive will not either on his own behalf or on behalf of any third party,
except on behalf of the Employer or with the Employer’s written consent, directly or indirectly, enter into or engage in
the ownership, management, operation, or control of, or act as a consultant, advisor, employee, consultant, contractor, or agent
for any person, business, or enterprise engaged directly or indirectly in the business of designing and manufacturing sensors
and sensor-based products competitive with the Employer at the time of Executive’s termination (the “Restricted
Business”). The Executive is only restricted from working for a person, company, or entity engaged in the Restricted
Business where the Executive has or will perform the same or similar type of work or service or offer the same or similar products
or services that the Executive performed or offered for the Employer during the last year of Employee’s employment with
the Employer. This non-competition restriction shall not apply to Executive’s ownership of less than five percent (5%) of
the issued and outstanding capital of stock of any corporation that is publicly traded and for which capital stock selling and
asking prices are published from time to time in The Wall Street Journal.

 

(b)           Non-Solicitation
of Customers. During the Restricted Period, the Executive will not on his own behalf or on behalf of any third party, except
on behalf of the Employer or with the Employer’s written consent, directly or indirectly, attempt in any manner to: (A)
contact, call on, solicit business from, or provide services to any Customer where those services compete with the services provided
or offered by the Employer; or (B) persuade any Customer to cease to do business, or to reduce the amount of business which any
such Customer has customarily done or actively contemplates doing, with the Employer or any of its subsidiaries. The term “Customer”
shall mean any person, company, or entity with whom the Executive had Material Contact and to whom the Employer or any of its
subsidiaries either (i) sold or provided any products or services to during the last year of the Executive’s employment
or (ii) engaged in active business negotiations for any purpose related to the Restricted Business during the last six (6) months
of the Executive’s employment. Employee will be deemed to have had “Material Contact” with a Customer if, during
the last year of Employee’s employment with the Employer, Employee (i) directly interacted with such Customer; (ii) supervised
an employee who interacted with such Customer; and/or (iii) obtained or received non-public information related specifically to
the Employer’s business or prospective business with such Customer. This restriction is not intended to prohibit the Employee
from offering similar services or products to persons, companies, or entities that are not Customers.

 

    	-12-

    	 

    

 

(c)           Non-Solicitation
of Employees. During the Restricted Period, Executive will not on his own behalf or on behalf of any third party, except on
behalf of the Employer or with Employer’s written consent, directly or indirectly, attempt in any manner to recruit, solicit
for employment, or hire or assist in the recruitment, solicitation, or hiring of any employee, consultant, or agent who worked
for, provided services to, or is affiliated with the Employer or any of its subsidiaries and during the last year of the Executive’s
employment either (i) reported, directly or indirectly, to the Executive, (ii) worked with the Executive on any project, product,
or proposal, or (iii) worked for or with the same Customer(s) as the Executive. This restriction includes, but is not limited
to (a) providing to any such prospective employer the identities of any of the Employer’s employees or (b) assisting any
of the Employer’s employees in obtaining employment with the Executive’s new employer through dissemination of resumes
or otherwise.

 

(d)           Acknowledgements.
The Executive agrees and acknowledges that, in connection with his employment with the Employer, he will be provided with access
to and become familiar with confidential and proprietary information and trade secrets belonging to the Employer. Executive further
acknowledges and agrees that, given the nature of this information and trade secrets, it is likely that such information and trade
secrets would be used or revealed, either directly or indirectly, in any subsequent employment with a competitor of the Employer
in any position comparable to the position he will hold with the Employer under this Agreement. The Executive agrees that the
relevant public policy aspects of post-employment restrictive covenants have been discussed, and that every effort has been made
to limit the restrictions placed upon the Executive to those that are reasonable and necessary to protect the Employer’s
legitimate interests. Executive acknowledges that, based upon his education, experience, and training, these restrictive covenants
will not prevent him from earning a livelihood and supporting himself and his family during the relevant time period. Executive
further acknowledges that, because the Employer is a global enterprise that markets its products around the world, a geographic
limitation on the restrictive covenants set forth above would not adequately protect the Employer’s legitimate business
interests.

 

(e)           Enforcement.
It is expressly agreed by the Executive that the nature and scope of each of the restrictive covenants set forth above in this
Section 7 are reasonable and necessary. If, for any reason, any aspect of the above restrictive covenants as it applies to the
Executive is determined by a court of competent jurisdiction to be unreasonable or unenforceable, the provisions shall, if permitted
under applicable law, be interpreted to make the provisions reasonable and/or enforceable, as the case may be.

 

(f)           Injunctive
Relief. The restrictions contained in this Section 7 are necessary for the protection of the business and goodwill of the
Employer and/or its affiliates and are considered by the Executive to be reasonable for such purposes. The Executive agrees that
any material breach of Section 7 will cause the Employer and/or its affiliates substantial and irrevocable damage and therefore,
in the event of any such breach, in addition to such other remedies which may be available, the Employer shall have the right
to seek specific performance and injunctive relief without posting bond.

 

    	-13-

    	 

    

 

(g)           Survival.
This Section 7 shall survive the expiration or termination of this Agreement for any reason.

 

8. Assignment.

 

(a)           No
Assignment by the Executive. Neither this Agreement nor any right or interest hereunder shall be assignable by the Executive,
his beneficiaries, or legal representatives without the Employer’s prior written consent; provided, however, that nothing
in this Section 8(a) shall preclude the Executive from designating a beneficiary to receive, upon his death, any benefit payable
hereunder, or the executors, administrators, or other legal representatives of the Executive’s estate from assigning any
rights hereunder to the person or persons entitled thereto.

 

(b)           Assignment
to Receive Payments. Except as otherwise required by law, without the Employer’s prior written consent, no right of
the Executive to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment,
encumbrance, charge, pledge, or hypothecation, or to exclusion, attachment, levy, or similar process or assignment by operation
of law, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

(c)          Assignment
by the Employer. The Employer may assign this Agreement to any successor or assign (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business or assets of the Employer. This Agreement shall
inure to the benefit of the Employer and permitted successors and assigns.

 

9. “Key
Man” Life and Disability Insurance. The Employer may, in its discretion, apply for and procure, in its own name and
for its own benefit, life insurance and disability insurance with regard to the Executive, in any amount or amounts that the Employer
may deem advisable. In connection therewith, the Executive shall submit to any reasonable medical or other examination, and execute
and deliver any application or other instrument, as reasonably requested by the Employer. Nothing herein shall obligate the Employer
to establish, maintain or continue any such insurance arrangement.

 

10. Notices.
All notices, requests, claims, demands, and other communications under this Agreement shall be in writing and shall be deemed
given if delivered personally or sent by overnight courier (providing proof of delivery) to the parties at the following addresses
(or at such address for a party as shall be specified by like notice):

 

If to the Employer:

 

Measurement Specialties, Inc.

1000 Lucas Way

Hampton, VA 23666

Attention: Chairman of the Board

 

    	-14-

    	 

    

 

If to the Executive:

 

The Executive’s most recent
home address on file in the Company’s employment records.

 

11. Entire
Agreement. The terms of this Agreement are intended by the parties to be the final expression of their agreement with respect
to the employment of the Executive by the Employer and may not be contradicted by evidence of any prior or contemporaneous agreement.
The parties further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no
extrinsic evidence may be introduced in any judicial, administrative, or other legal proceeding involving this Agreement.

 

12. Amendments;
Waivers. This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive
and by a duly authorized representative of the Employer other than the Executive. By an instrument in writing similarly executed,
either party may waive compliance by the other party with any provision of this Agreement that such other party was or is obligated
to comply with or perform; provided that such waiver shall not operate as a waiver of, or estoppel with respect to, any
other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of any right, remedy, or power hereunder preclude any other or further
exercise thereof, or the exercise of any other right, remedy, or power provided herein, or by law or in equity.

 

13. Governing
Law.  The validity, interpretation, enforceability, and performance of this Agreement shall be governed by and
construed in accordance with the law of the Commonwealth of Virginia, without giving effect to conflict of laws principles.

 

14. Consent
to Jurisdiction. Without in any manner limiting the provisions of this Agreement, any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, this Agreement may be brought exclusively in the courts of the Commonwealth
of Virginia, or, if it has or can acquire jurisdiction, in a United States District Court located in the Commonwealth of Virginia,
and each of the parties consents to the exclusive jurisdiction of such courts (and of the appropriate appellate courts) in any
such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the
preceding sentence may be served on any party anywhere in the world. Each of the parties hereto further agrees that final judgment
against it in any such action or proceeding shall be conclusive and may be enforced by any other jurisdiction within or outside
the United States of America by suit on the judgment, a certified or exemplified copy of which shall be conclusive evidence thereof.

 

15. Remedies.
Except as otherwise provided in this Agreement and in the Release attached as Exhibit A hereto (which is substantially
the form of Release to be executed and delivered by Executive following Executive’s termination), (i) none of the remedies
provided in this Agreement are the exclusive remedy of a party for breach of this Agreement and (ii) the parties hereto shall
have the right to seek any other remedy in law or equity, including without limitation an action for damages for breach of contract.

 

    	-15-

    	 

    

 

16. Golden
Parachute Excise Tax. 

 

(a)          Parachute
Payments. If any payment or benefit the Executive would receive pursuant to this Agreement or pursuant to any other agreement
with the Employer following a change in the ownership or effective control of the Employer or change in the ownership of a substantial
portion of the assets of the Employer (which change, as further defined in Section 280G of the Code and regulations promulgated
thereunder (“Section 280G”), is referred to herein as a “Change in Control”) from the Employer
or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section
280G, and (ii) but for this section, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest
portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax, or (y) the largest portion,
up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Executive’s
receipt, on a net after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment
may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary
so that the Payment equals the Reduced Amount, reduction shall occur in the following order: (1) cash payments, in the following
order: (a) first, Severance Payments under this Agreement, (b) second, severance payments under any other agreement with the Employer
and (c) third, any other cash payments under any of the foregoing agreements; (2) cancellation of the acceleration of vesting
of stock options, restricted stock, restricted stock units or any other awards that vest based on attainment of performance measures;
(3) cancellation of the acceleration of vesting of stock options, restricted stock and restricted stock units or any other awards
that vest only based on Executive's continued service to the Employer, taking the last ones scheduled to vest (absent the acceleration)
first, and (4) other non-cash forms of benefits.

 

(b)          Calculations.
The foregoing calculations will be performed at the expense of the Employer by a nationally recognized accounting firm (the “Accounting
Firm”) selected by the Employer. The Employer will direct the Accounting Firm to submit its determination and detailed
supporting calculations to both the Employer and the Executive within thirty (30) calendar days after the Change in Control, the
date of termination, if applicable, and any such other time or times as may be reasonably requested by the Employer or the Executive.
If the Accounting Firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application
of the Reduced Amount, it shall furnish the Employer and the Executive with an opinion reasonably acceptable to Executive that
no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the Accounting Firm made hereunder
shall be final, binding and conclusive upon the Employer and the Executive.

 

17.          Section
409A.

 

(a)          This
Agreement is intended to comply with, or otherwise be exempt from, Section 409A of the Code and any regulations and Treasury guidance
promulgated thereunder. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A
of the Code, the provision shall be read in such a manner so that no payments due under this Agreement shall be subject to an
“additional tax” as defined in Section 409(a)(1)(B) of the Code. If the Employer determines in good faith that any
provision of this Agreement would cause the Executive to incur an additional tax, penalty, or interest under Section 409A of the
Code, the Employer and the Executive shall use reasonable efforts to reform such provision, if possible, in a mutually agreeable
fashion to maintain to the maximum extent practicable the original intent of the applicable provision without violating the provisions
of Section 409A of the Code or causing the imposition of such additional tax, penalty, or interest under Section 409A of the Code.
The preceding provisions, however, shall not be construed as a guarantee by the Employer of any particular tax effect to the Executive
under this Agreement.

 

    	-16-

    	 

    

 

(b)          For
purposes of Section 409A of the Code, the right to a series of installment payments under this Agreement shall be treated as a
right to a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of
payment.

 

(c)          With
respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Executive, as specified under this Agreement,
such reimbursement of expenses or provision of in-kind benefits shall be subject to the following conditions: (1) the expenses
eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible
for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement
providing for the reimbursement of expenses referred to in Section 105(b) of the Code; (2) the reimbursement of an eligible expense
shall be made no later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement
or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

 

(d)          “Termination
of employment,” “resignation,” or words of similar import, as used in this Agreement means, for purposes of
any payments under this Agreement that are payments of deferred compensation subject to Section 409A of the Code, the Executive's
“separation from service” as defined in Section 409A of the Code.

 

(e)          If
a payment obligation under this Agreement arises on account of the Executive’s separation from service while the Executive
is a “specified employee” (as defined under Section 409A of the Code and determined in good faith by the Employer),
any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving
effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six
(6) months after such separation from service shall accrue without interest and shall be paid within fifteen (15) days after the
end of the six-month period beginning on the date of such separation from service or, if earlier, within fifteen (15) days after
the appointment of the personal representative or executor of the Executive’s estate following his death.

 

(f)          Nothing
herein shall be construed as having modified the time and form of payment of any amounts or payments of “deferred compensation”
(as defined under Treas. Reg. § 1.409A-1(b)(1), after giving effect to the exemptions in Treas. Reg. §§ 1.409A-1(b)(3)
through (b)(12)) that were otherwise payable pursuant to the terms of any agreement between the Employer and the Executive in
effect on or after January 1, 2005 and prior to the date of this Agreement.

 

    	-17-

    	 

    

 

18. Additional
Executive Acknowledgment. The Executive acknowledges: (i) that he has been advised by Employer to consult with independent
counsel of his own choice concerning this Agreement and has been provided the opportunity to do so; and (ii) that he has read
and understands the Agreement, is fully aware of its legal effect, and has entered into it freely based on his own judgment.

 

19. Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of the Employer and its respective successors
and assigns, but the rights and obligations of the Executive are personal and may not be assigned or delegated without the Employer’s
prior written consent.

 

20. Severability;
Invalid Provisions.

 

(a)          Should
a court of competent jurisdiction hold one or more of the provisions of this Agreement to be invalid, illegal, or unenforceable
in any respect, that court shall sever the provision from this Agreement and this Agreement shall be construed as if such invalid,
illegal, or unenforceable provision had not been set forth herein.

 

(b)          Should
a court of competent jurisdiction strike any provision of this Agreement as invalid, illegal, or unenforceable, such invalidity,
illegality or unenforceability shall not affect any other provisions hereof or the validity of the remainder of this Agreement,
the balance of which shall continue to be binding upon the parties.

 

21. Withholding.
The Employer shall have the right to withhold from any amount payable hereunder any Federal, state and local taxes in order for
the Employer to satisfy any withholding tax obligation it may have under any applicable law or regulation.

 

22. Survival.
Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall
survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

 

23. Counterparts;
Facsimile. This Agreement may be executed by facsimile or electronically and in two or more counterparts, each of which will
be deemed an original but all of which together shall constitute one and the same instrument.

  

{the remainder of this page has been
intentionally left blank}

 

    	-18-

    	 

    

 

IN WITNESS WHEREOF
the parties have duly executed this Agreement as of the date first written above.

 

	MEASUREMENT SPECIALTIES, INC.
	 	 
	By:	 
	Name:	Mark Thomson
	Title:	Chief Financial Officer
	 

        ACKNOWLEDGMENT OF FULL UNDERSTANDING.
        THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT.
        THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF
        HIS CHOICE BEFORE SIGNING THIS AGREEMENT

         

        EXECUTIVE

	 
	 
	Frank D. Guidone

 

    	-19-

    	 

    

 

EXHIBIT A

 

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL
RELEASE

 

This Confidential Separation Agreement
and General Release (the “Separation Agreement”) is made between Measurement Specialties, Inc. (the “Company”)
and [NAME] (the “Executive”) (each a “Party” and together the “Parties”).

 

WHEREAS, the Executive was most recently
employed by the Company as its [POSITION] pursuant to the terms of an Executive Employment Agreement dated [DATE] (the “Employment
Agreement”), a copy of which is attached;

 

WHEREAS, [the Company has terminated the
Executive’s employment Other Than For Cause OR the Executive has terminated his employment for Good Reason] pursuant to
Section 4(c) of the Employment Agreement (all capitalized terms not defined in this Separation Agreement shall have the meaning
ascribed to them in the Employment Agreement), thereby entitling the Executive to certain financial benefits under the Employment
Agreement provided that the Executive enters into and does not revoke a comprehensive general release of claims against the Company;

 

[WHEREAS, there was a Change in Control
on [DATE];]

 

WHEREAS, this Separation Agreement constitutes
the Parties’ entire understanding regarding the termination of the Executive’s employment with the Company and supersedes
any other agreement between the Parties, except as otherwise provided herein;

 

NOW THEREFORE, for and in consideration
of the mutual promises contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby
acknowledged, the Parties hereby agree as follows:

 

		1.	Termination of Employment. The
                                         Parties agree and acknowledge that [the Company has terminated the Executive’s
                                         employment Other Than For Cause OR the Executive has terminated his employment for Good
                                         Reason] under Section 4(c) of the Employment Agreement, effective on [DATE] (the “Termination
                                         Date”). As of the Termination Date, the Executive shall be deemed to have resigned
                                         from all positions that the Executive holds as an officer of the Company or any of its
                                         affiliates, the Executive is not to hold himself out as an employee, agent, or authorized
                                         representative of the Company, and the Executive is not to negotiate or enter into any
                                         agreements on behalf of the Company or otherwise attempt to bind the Company.

 

		2.	Payment on Termination. The Company
                                         shall provide the Executive with the following sums, payable in a lump sum within twenty
                                         (20) business days after the date of termination: (A) the amount of Executive’s
                                         Salary accrued through the date of termination, (B) any outstanding business expenses
                                         that were incurred by Executive prior to the date of termination but not reimbursed as
                                         of such date, and (C) any Annual Bonus earned in the prior completed fiscal year that
                                         has been accrued but not yet paid as of the date of termination of employment (together,
                                         the “Accrued Rights”). The Accrued Rights will be paid to the Executive minus
                                         applicable withholdings and taxes. The Executive acknowledges that the Accrued Rights
                                         are all of the amounts owed to him by the Company through the Termination Date.

 

    	 

    	 

    

 

EXHIBIT A

 

		3.	Consideration. In accordance
                                         with the terms of Section 4(c) of the Employment Agreement and subject to Section 16
                                         (Golden Parachute Excise Tax) and Section 17 (Section 409A) of the Employment Agreement,
                                         as consideration for entering into this Separation Agreement, the Company shall provide
                                         the Executive with the following sums, each payable within the time frame set forth herein:

 

(a)          [In
Non-Change in Control Scenario:]

 

		a.	An amount equal to [100][150]% of
                                         Executive’s Annual Salary as in effect on the Termination Date, to be paid in [a
                                         lump sum within twenty (20) business days OR equal installments in accordance with the
                                         Employer’s payroll practices then in effect over the course of twelve (12) months]
                                         following the Effective Date of this Separation Agreement (the “Severance Payment”).
                                         The Severance Payment will be paid to the Executive minus applicable withholdings and
                                         taxes. Contingent upon Executive’s compliance with the terms of this Separation
                                         Agreement, payments of the Severance Payment may continue even if the Executive becomes
                                         employed elsewhere.

 

		b.	A pro-rata portion of the Annual
                                         Bonus earned for the fiscal year of termination, the amount of which will be the amount
                                         determined by the Compensation Committee based on actual performance of the Employer
                                         and the Executive for the fiscal year, multiplied by a fraction, the numerator of which
                                         is the number of days during the fiscal year of Executive’s termination before
                                         the Termination Date, and the denominator of which is three hundred sixty-five (365),
                                         to be paid in a lump sum as soon as practicable after determination of the Annual Bonus
                                         consistent with the Employer’s normal bonus determination practices but not later
                                         than the 15th day of the third month following the end of the Employer’s fiscal
                                         year to which the bonus relates (the “Termination Year Bonus”). The Termination
                                         Year Bonus will be paid to the Executive minus applicable withholdings and taxes.

 

		c.	Full vesting of all outstanding
                                         unvested equity awards held by the Executive as of the Termination Date with respect
                                         to which the vesting is conditioned solely upon continued service for a specified period
                                         (including, without limitation, any outstanding performance-based equity awards with
                                         respect to which all performance conditions have been satisfied in full as of the Termination
                                         Date but vesting therein remains conditioned thereafter upon continued service for a
                                         specified period) (the “Equity Acceleration”).

 

    	-2-

    	 

    

 

EXHIBIT A

 

		d.	For twelve (12) months following
                                         the Effective Date of the Release, the Employer shall pay to the Executive a monthly
                                         amount before the end each calendar month equal to the difference between the monthly
                                         cost of health and dental benefits continuation coverage under COBRA for the Executive
                                         and his eligible dependents (assuming coverage eligibility and timely election of COBRA
                                         coverage), less the monthly amount that the Executive would be required to contribute
                                         for health and dental coverage for the Executive and his eligible dependents if the Executive
                                         were still an active employee and Executive Officer of the Employer (the “COBRA
                                         Continuation Payments”). The Executive will receive a separate notice explaining
                                         his right to continuation and conversion of his health benefits under the Consolidated
                                         Omnibus Reconciliation Act of 1985 (“COBRA”) and/or any applicable state
                                         law. Should the Executive wish to continue his group health benefits coverage following
                                         the expiration of the COBRA Continuation Payments, the Executive will be responsible
                                         for paying the premium in full each month.

 

(b)          [In
Change in Control Scenario:]

 

		a.	An amount equal to [150][200]% of
                                         the sum of (A) the Executive’s Annual Salary as in effect on the Termination Date
                                         plus (B) the target Annual Bonus for the fiscal year in which the employment termination
                                         occurs, to be paid in [a lump sum within twenty (20) business days OR equal installments
                                         in accordance with the Employer’s payroll practices then in effect over the course
                                         of eighteen (18) months] following the Effective Date of this Separation Agreement (the
                                         “Severance Payment”). The Severance Payment will be paid to the Executive
                                         minus applicable withholdings and taxes. Contingent upon Executive’s compliance
                                         with the terms of this Separation Agreement, payments of the Severance Payment may continue
                                         even if the Executive becomes employed elsewhere.

 

		b.	A pro-rata portion of the target
                                         Annual Bonus for the fiscal year of termination, determined by multiplying the Executive’s
                                         target Annual Bonus for such fiscal year by a fraction, the numerator of which is the
                                         number of days during the fiscal year of Executive’s termination before the Termination
                                         Date, and the denominator of which is three hundred sixty-five (365), to be paid in a
                                         lump sum within twenty (20) business days following the Effective Date of this Separation
                                         Agreement (the “Termination Year Bonus”). The Termination Year Bonus will
                                         be paid to the Executive minus applicable withholdings and taxes.

 

		c.	Full vesting of all outstanding
                                         unvested equity awards held by the Executive as of the Termination Date (including, without
                                         limitation, any outstanding performance-based equity awards with respect to which the
                                         relevant performance period has not concluded prior to the Termination Date) (the “Equity
                                         Acceleration”).

 

		d.	For eighteen (18) months following
                                         the Effective Date of the Release, the Employer shall pay to the Executive a monthly
                                         amount before the end each calendar month equal to the difference between the monthly
                                         cost of health and dental benefits continuation coverage under COBRA for the Executive
                                         and his eligible dependents (assuming coverage eligibility and timely election of COBRA
                                         coverage), less the monthly amount that the Executive would be required to contribute
                                         for health and dental coverage for the Executive and his eligible dependents if the Executive
                                         were still an active employee and Executive Officer of the Employer (the “COBRA
                                         Continuation Payments”). The Executive will receive a separate notice explaining
                                         his right to continuation and conversion of his health benefits under the Consolidated
                                         Omnibus Reconciliation Act of 1985 (“COBRA”) and/or any applicable state
                                         law. Should the Executive wish to continue his group health benefits coverage following
                                         the expiration of the COBRA Continuation Payments, the Executive will be responsible
                                         for paying the premium in full each month.

 

    	-3-

    	 

    

 

EXHIBIT A

 

		4.	Cooperation. Pursuant to Section
                                         4(g) of the Employment Agreement, to the extent reasonably requested by the Company,
                                         the Executive shall cooperate with the Company in connection with matters arising out
                                         of the Executive’s service to the Company, including, without limitation, providing
                                         information of limited consultation as to such matters, participating in legal proceedings,
                                         investigations or audits on behalf of the Company, or otherwise making himself reasonably
                                         available to the Company for other related purposes; provided that the Company shall
                                         make reasonable efforts to minimize disruption of the Executive's other activities. The
                                         Company shall reimburse the Executive for reasonable expenses incurred in connection
                                         with such cooperation and, to the extent that the Executive is required to spend substantial
                                         time on such matters, the Company shall compensate the Executive at an hourly rate based
                                         on the Executive’s Base Salary as in effect as of his termination date.

 

		5.	No Other Compensation. By the
                                         Executive’s signature below, he acknowledges and agrees that the terms set forth
                                         above include compensation and benefits to which he is not otherwise entitled. Furthermore,
                                         the Executive acknowledges that except as expressly set forth above, after today, he
                                         will be entitled to no other or further compensation, remuneration, or benefits from
                                         the Company.

 

		6.	Non-Disparagement. The Executive
                                         understands and agrees that his entitlement to the compensation and benefits described
                                         in this Separation Agreement is conditioned upon his continued support of the Company.
                                         The Executive agrees to refrain from taking any action, and/or making any statement (oral
                                         or written) that disparages or criticizes the Company, its affiliates, parent companies,
                                         subsidiaries, and related entities, or its officers, directors, or employees, or that
                                         harms the Company’s or any of their respective reputations, or that disrupts or
                                         impairs the Company’s normal, ongoing business operations. This provision applies
                                         to all of the Executive’s interactions with third parties, including without limitation
                                         any conversations or correspondence that he might have with organizations, governmental
                                         entities, and/or persons with whom the Company engages in business, as well as with employees
                                         of the Company. The Executive understands that this provision does not apply on occasions
                                         when he is subpoenaed or ordered by a court or other governmental authority to testify
                                         or give evidence and must, of course, respond truthfully.

 

		7.	Return of Property. The Executive
                                         agrees to return to the Company any and all Company property in his possession, including,
                                         but not limited to, any computer or other electronic devices; software programs; other
                                         Company equipment, tools, records, or technical materials; information related to Company
                                         customers, clients and business contacts; marketing information; pricing information;
                                         cellular phones; personnel materials or files, handbooks, manuals, or policies; memoranda,
                                         notes, and drafts thereof; and any other documents or property (and any summaries or
                                         copies thereof), developed by him and/or obtained by him or on his behalf, directly or
                                         indirectly, pursuant to his employment with the Company.

 

    	-4-

    	 

    

 

EXHIBIT A

 

		8.	Continuing Obligations. The Executive
                                         acknowledges and reaffirms his ongoing obligations to comply with the Proprietary Information
                                         (Section 5), Intellectual Property (Section 6), and Restrictive Covenants (Section 7)
                                         provisions in the Employment Agreement, which remain in full force and effect.

 

		9.	Injunctive Relief. The Executive
                                         acknowledges that a breach or threatened breach of Sections 6-7 of this Separation Agreement
                                         and Sections 5-7 of the Employment Agreement by him would result in material and irreparable
                                         injury to the Company, and that it would be difficult or impossible to establish the
                                         full monetary value of such damage. Therefore, the Company shall be entitled to injunctive
                                         relief in the event of the Executive’s breach or threatened breach of any of the
                                         terms contained in Sections 6-7 of this Separation Agreement or Sections 5-7 of the Employment
                                         Agreement. The undertakings in Sections 6-7 of this Separation Agreement regarding non-disparagement
                                         and return of property and those in Sections 5-7 of the Employment Agreement regarding
                                         proprietary information, intellectual property, and restrictive covenants shall survive
                                         the termination of other arrangements in this Separation Agreement.

 

		10.	Non-Admission. This Agreement
                                         shall not in any way be construed as an indication of admission by the Company or the
                                         Executive that either has acted improperly with respect to the other or any other person.
                                         The Company specifically denies any liability to or wrongful acts against the Executive
                                         or any other person, on the part of itself, its employees, or its agents, and the Executive
                                         likewise specifically denies any such liability or wrongdoing.

 

		11.	General Release. In keeping
                                         with the Parties’ intent to allow for an amicable separation, and as consideration
                                         for the severance pay and benefits being provided to the Executive, the Executive agrees
                                         to release and waive the Company, its legal representatives, assigns, predecessors, successors,
                                         affiliates, parent companies, subsidiaries and related entities, and their past and present
                                         officers, directors, stockholders, fiduciaries, insurers, agents and employees (each
                                         in their individual and corporate capacities) (collectively, the “Released Parties”)
                                         of and from any and all claims, whether known or unknown, arising out of or relating
                                         to the Executive’s employment, including the termination of his employment. This
                                         release and waiver includes all rights and obligations under any federal, state or local
                                         laws, all common law claims, and all claims to any non-vested interest in the Company.
                                         This release will not affect the ability of other Party to enforce rights or entitlements
                                         specifically provided for under this Agreement, it does not waive any rights or claims
                                         that may arise after the date this Agreement is signed by the Executive, and nothing
                                         in this release shall be construed to prohibit the Executive from filing or participating
                                         in an administrative charge of discrimination with a federal or state agency or from
                                         waiving any claims that cannot be waived as a matter of law.

 

    	-5-

    	 

    

 

EXHIBIT A

 

		12.	Covenant Not to Sue. The Executive
                                         understands and agrees that to the fullest extent permitted by law, he is precluded from
                                         filing or pursuing any legal claim of any kind against any of the Released Parties at
                                         any time in the future, in any federal, state, or municipal court, administrative agency,
                                         or other tribunal, arising out of any of the claims that the Executive has waived by
                                         virtue of executing this Separation Agreement. The Executive agrees not to file or pursue
                                         any such legal claims, and, if he does pursue such legal claims or file an administrative
                                         charge that may not be released as a matter of law, he waives any right to recover any
                                         monetary payments or other individual benefits in any such proceeding. By the Executive’s
                                         signature below he represents that he has have not filed any such legal claims against
                                         any of the Released Parties in any federal, state, or municipal court, administrative
                                         agency, or other tribunal.

 

		13.	Release Representations. By
                                         the Executive’s signature below, he represents that: (a) he is not aware of any
                                         unpaid wages, severance, vacation, benefits, commissions, bonuses, expense reimbursements,
                                         or other amounts owed to him by the Company, other than the Accrued Rights, Severance
                                         Payment, Termination Year Bonus, Equity Acceleration, and COBRA Continuation Payments
                                         specifically promised in this Separation Agreement; (b) he has not been denied any request
                                         for leave to which he believes he was legally entitled, and he was not otherwise deprived
                                         of any of his rights under the Family and Medical Leave Act or any similar state or local
                                         statute; and (c) he has not assigned or transferred, or purported to assign or transfer,
                                         to any person, entity, or individual whatsoever, any of the claims released in the foregoing
                                         general release and waiver.

 

		14.	Release Acknowledgements. The
                                         Executive acknowledges, agrees and understands that:

 

		(c)	under the release detailed above,
                                         he is waiving and releasing, among other claims, any rights and claims that may exist
                                         under the Age Discrimination in Employment Act (“ADEA”);

 

		(d)	the waiver and release of claims
                                         set forth in the release above does not apply to any rights or claims that may arise
                                         under the ADEA after the date of execution of this release, nor does it apply to his
                                         right to challenge the validity of this Agreement’s waiver and release of claims
                                         under the ADEA;

 

		(e)	the Severance Payments and other
                                         benefits that are being provided to him are of significant value and in addition to what
                                         he otherwise would be entitled;

 

		(f)	he is being advised in writing
                                         to consult with an attorney before signing this Agreement;

 

		(g)	he is being given a period of twenty-one
                                         (21) days within which to review and consider this Agreement before signing it and returning
                                         an executed copy to the Company, though he may sign earlier, and any change(s) made to
                                         this Separation Agreement by the parties during that time will not restart the running
                                         of the 21-day consideration period;

 

		(h)	he may revoke his acceptance of
                                         this Separation Agreement by providing written notice to the Company within seven (7)
                                         days following its execution; and

 

    	-6-

    	 

    

 

EXHIBIT A

 

		(i)	because of his right to revoke
                                         your acceptance of this Separation Agreement, this Agreement shall not become effective
                                         and enforceable until the eighth (8th) day after the return of an executed copy of this
                                         Agreement by him to the Company (the “Effective Date”), and he will not be
                                         entitled to any of the benefits set forth in this Agreement until after the Effective
                                         Date.

 

		15.	Confidentiality. This Agreement,
                                         its contents and all information pertaining to its negotiations shall remain confidential.
                                         The Executive will not disclose this Agreement or its contents to any person, other than
                                         his spouse or significant other, and his legal or tax advisor, as may otherwise be required
                                         by law, or as may be necessary to challenge an alleged breach of this Agreement in a
                                         court of competent jurisdiction.

 

		16.	Breach. The Company’s
                                         continuing obligations under this Agreement are contingent upon the Executive’s
                                         compliance with all terms and conditions provided for herein. In the event that the Executive
                                         breaches any of his obligations under this Agreement, the Company may cease making any
                                         payments due under this Agreement, and recover all payments already made under this Agreement,
                                         in addition to all other available legal remedies.

 

		17.	Legal Action. In the event the
                                         Company is required to take legal action against the Executive enforce its rights under
                                         this Separation Agreement, the Company shall be entitled to collect from him the attorney’s
                                         fees and costs that it incurs in seeking to enforce this Separation Agreement, in addition
                                         to any other relief to which it may be entitled.

 

		18.	Choice of Law. The validity,
                                         interpretation, enforceability, and performance of this Agreement shall be governed by
                                         and construed in accordance with the law of the Commonwealth of Virginia, without giving
                                         effect to conflict of laws principles.

 

		19.	Consent to Jurisdiction. Any
                                         action or proceeding seeking to enforce any provision of, or based on any right arising
                                         out of, this Separation Agreement may be brought exclusively in the courts of the Commonwealth
                                         of Virginia, or, if it has or can acquire jurisdiction, in a United States District Court
                                         located in the Commonwealth of Virginia, and each of the parties consents to the exclusive
                                         jurisdiction of such courts (and of the appropriate appellate courts) in any such action
                                         or proceeding and waives any objection to venue laid therein. Process in any action or
                                         proceeding referred to in the preceding sentence may be served on any party anywhere
                                         in the world. Each of the parties hereto further agrees that final judgment against it
                                         in any such action or proceeding shall be conclusive and may be enforced by any other
                                         jurisdiction within or outside the United States of America by suit on the judgment,
                                         a certified or exemplified copy of which shall be conclusive evidence thereof.

 

		20.	Notices. All notices, requests,
                                         claims, demands, and other communications under this Separation Agreement shall be in
                                         writing and shall be deemed given if delivered personally or sent by overnight courier
                                         (providing proof of delivery) to the Parties at the following addresses (or at such address
                                         for a Party as shall be specified by like notice):

 

    	-7-

    	 

    

 

EXHIBIT A

 

If to the Company:

 

Measurement Specialties, Inc.

1000 Lucas Way

Hampton, VA 23666

Attention: [INSERT NAME, POSITION]

 

If to the Executive:

 

[INSERT ADDRESS]

 

		21.	Assignment.

 

		a.	Neither this Separation Agreement
                                         nor any right or interest hereunder shall be assignable by the Executive, his beneficiaries,
                                         or legal representatives without the Employer’s prior written consent; provided,
                                         however, that nothing in this section shall preclude the Executive from designating a
                                         beneficiary to receive, upon his death, any benefit payable hereunder, or the executors,
                                         administrators, or other legal representatives of the Executive’s estate from assigning
                                         any rights hereunder to the person or persons entitled thereto.

 

		b.	Except as otherwise required by
                                         law, without the Company’s prior written consent, no right of the Executive to
                                         receive payments under this Separation Agreement shall be subject to anticipation, commutation,
                                         alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to exclusion,
                                         attachment, levy, or similar process or assignment by operation of law, and any attempt,
                                         voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

		c.	The Company may assign this Separation
                                         Agreement to any successor or assign (whether direct or indirect, by purchase, merger,
                                         consolidation or otherwise) to all or substantially all of the business or assets of
                                         the Employer. This Agreement shall inure to the benefit of the Employer and permitted
                                         successors and assigns.

 

		22.	No Waiver. The failure of any
                                         Party to insist, in one or more instances, on performance by any Party in strict compliance
                                         with this Separation Agreement, shall not be deemed a waiver or release of any right,
                                         term, covenant, or condition, unless such waiver is contained in a writing signed by
                                         the Party to be charged with a waiver. No waiver shall waive any subsequent compliance
                                         unless expressly therein set forth.

 

		23.	Severability. The provisions
                                         of this Separation Agreement are severable. If any provision is held to be invalid or
                                         unenforceable, it shall not affect the validity or the enforceability of any other provision.

 

    	-8-

    	 

    

 

EXHIBIT A

 

		24.	Entire Agreement This Separation
                                         Agreement is a full and accurate embodiment of the understanding between the Parties,
                                         and it supersedes any prior agreements or understandings made by the parties; except,
                                         that the Executive’s obligations and the Company’s rights under the Employment
                                         Agreement shall survive the Parties’ execution of this Separation Agreement and
                                         not be extinguished thereby, except as otherwise specified herein. The terms of this
                                         Separation Agreement may not be modified, except by mutual consent of the Parties or
                                         by a court of competent jurisdiction. Any and all modifications by the Parties must be
                                         reduced to writing and signed by the Parties to be effective.

 

		25.	Execution and Counterparts.
                                         This Separation Agreement may be executed in any number of counterparts, each of which
                                         shall be deemed to be an original as against any Party whose signature appears thereon
                                         (including executed counterparts transmitted by facsimile or e-mail), and all of such
                                         counterparts shall together constitute one and the same instrument.

 

		26.	Executive Signature Acknowledgement.
                                         By signing this Agreement, the Executive acknowledges and affirms that he has read the
                                         foregoing offer and fully understands its terms. The Executive further acknowledges and
                                         affirms that he is signing this agreement freely and voluntarily, having been given a
                                         full and fair opportunity to consider it and consult with advisors of his choice.

 

IN WITNESS WHEREOF, the Parties
have executed this Agreement individually.

 

	 	 	Measurement Specialties, Inc.
	 	 	 
	 	 	By:	 
	[NAME]	 	 	[Name]
	 	 	 	[Position]
	 	 	 
	Date:	 	 	Date:	 

 

    	-9-

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