Document:

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                                                                   EXHIBIT 10.22

                               SERVICES AGREEMENT
                           EFFECTIVE DECEMBER 18, 2003

                                     BETWEEN

                               HEALTHSCRIBE, INC.

                                       AND

                        MAX HEALTHSCRIBE PRIVATE LIMITED

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                               SERVICES AGREEMENT

This Services Agreement (the "Agreement"), is executed this 3rd day of March
2004, and is effective as of the 18th day of December, 2003, is by and between:

HealthScribe, Inc., a Delaware corporation with its principal office at 21670
Ridgetop Circle, Sterling, Virginia 20166, USA (hereinafter referred to as "HS")

And

Max HealthScribe Private Limited, a company registered under the Indian
Companies Act, 1956, having its registered office at One HealthScribe Plaza,
Koramangala Block 8, Bangalore -- 560 008, India (hereinafter referred to as
"HSILP"). HSIPL has a pending name change filed in India. Once the name change
is complete, HSIPL shall be known as "HealthScribe (India) Private Limited."

WHEREAS, HS and HSIPL had previously entered into a Services Agreement dated
July 10, 2000, which they desire to terminate and amend and restate in the form
hereof;

WHEREAS, HS wishes to continue to engage HSIPL to provide transcription services
and priming activity (the "Services") on an as-requested, work-for-hire basis,
on the terms herein;

WHEREAS, HSIPL has agreed to provide the Services on the terms herein and that
its board of directors has determined that the provision of such Services will
be in the best interests of HSIPL; and

WHEREAS, HS and HSIPL wish to enter into this Agreement to establish the terms
and conditions upon which HSIPL will provide the Services to HS.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises, covenants and undertakings set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto do
hereby agree as follows:

DEFINITIONS.

"Capacity" shall mean the number of Lines that HSIPL can complete in a given
month, which figure shall be notified to HS by HSIPL, in accordance with the
provisions of Clause 8.3.

"Clients" shall mean the clients of HS in the United States of America who have
entered into a contract with HS or any other clients, for the transcription of
Voice Files into Transcribed Lines.

"Committed Capacity" shall mean the minimum transcription capacity of HSIPL to
transcribe the Committed Lines.

"Committed Lines" shall mean the minimum volume of Lines committed by HS which
are specified under Part A of Exhibit A.

"Employees" shall mean HSIPL employees.

"Force Majeure" shall mean any interruptions to the business of either party
caused as a result of any acts beyond their control including war, acts of
internal aggression, violence, arson, vandalism, acts of wanton destruction;
fires, storms, hurricanes, floods, earthquakes or other natural disasters or
acts of God, strikes, lockouts or other labor dispute, disruption of constant
power supply for more than 48 hours, disruptions to the satellite linkage with
HS, software and hardware crashes; and changes in law that limit or prohibit the
services to be provided hereunder.

"HIPAA" shall mean the Health Insurance Portability and Accountability Act of
1996 and the regulations promulgated thereunder, all as amended and in effect.

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"Jobs" shall mean Transcription and, or Priming Activity, as the case may be
and, or any other activity as agreed between the Parties.

"LIBOR" means London Inter Bank Offered Rate.

"Line" shall mean a line of 65 characters including spaces between words but
excluding system generated template characters not required to be typed by the
transcriptionist or any other standard line, the definition of which may be
agreed by the parties during the term of this Agreement. In case of failure to
agree to any other definition the foregoing definition of "Line" shall prevail.
The parties may agreed to a different definition of "Line" for different Jobs.

"Non Stat Jobs" shall mean those jobs other than Stat Jobs.

"Priming Activity" shall mean the process of entry of the patient as well as the
doctor's and clinic's demographic data in the text file for each Job prior to
the Voice File being transcribed.

"QA Proofreading" shall have the meaning ascribed to it in Clause 6.2 hereunder.

"Services Fees" shall have the meaning ascribed to it in Clause 3.

"Software" shall have the meaning as ascribed to it in the Software License
Agreement.

"Software License Agreement" shall mean the software license agreement executed
between HS and HSIPL, dated July 10, 2000.

"Stat Jobs" shall mean those specific jobs which, regardless of the TAT
stipulated by HS in respect of that Client or Work Type, are identified by
Client as one that must be completed as soon as possible and these jobs will be
routed to the next available transcriptionist and/or editor for immediate
processing.

"Transcription" shall mean the electronic document created from Voice Files
dictated by a doctor.

"Transcribed Lines" shall have the meaning ascribed to it in Clause 2.1
hereunder.

"Turnaround Time" or "TAT" shall mean the time specified in respect of each Job
and Work Type of a given Client, within which HSIPL must convert a job into
Transcribed Lines, which time shall be stipulated by HS prior to assigning the
Jobs of a Client or Work Type to HSIPL.

"Voice Files" shall mean digital recordings of dictated voice that can be
understood by playing these files on a computer matching the hardware and
software specifications prescribed by HS.

"Work Type" shall mean and refer to distinct categories of Jobs that shall be
classified depending on the respective departments of a Client from which such
Jobs emanate.

2.       SERVICES.

2.1      During the term of this Agreement and for the consideration referenced
         in Clause 3. HSIPL agrees to provide Transcription and services
         relating to Priming Activity to HS, through HSIPL's employees, agents,
         subcontractors, and representative and the Services to be provided by
         HSIPL to HS would include the following:

         (i)      to carry out the transcription of the Voice Files forwarded to
                  HSIPL by HS into Lines of typewritten text (the "Transcribed
                  Lines"). HS may require that the Transcribed Lines be
                  subsequently proofread by HS in order to bring them to a level
                  of accuracy required by Clause 6 of this Agreement.
                  Transcribed Lines that meet the accuracy as provided in Clause
                  6 shall be forwarded by HS to its Clients.

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         (ii)     carry out the Priming Activity of the Transcription Files for
                  the Voice Files forwarded to HSIPL by HS prior to the entry of
                  the Transcribed Lines.

2.1A     HS shall provide services relating to connectivity, networking and
         installation of modules required of the Software at a third party
         customer location (other than HS's Client) for a fee and reimbursement
         provided in Clause 3.6. HS shall provide these services for the benefit
         of HS's Clients without any fee payable by HSIPL.

2.2      HS shall provide HSIPL with Committed Lines to perform Transcription
         and HSIPL shall be obligated to provide the Committed Capacity, except
         that for the partial first calendar quarter (beginning on the effective
         date of this Agreement and ending on December 31, 2003) the parties
         shall provide the Committed Lines and Committed Capacity on a pro rata
         basis based upon the number of days elapsed over such partial calendar
         quarter.

2.3      HSIPL also shall provide to HS services relating to Priming Activity of
         the Transcription files for the Voice Files forwarded to HSIPL by HS
         wherein Transcription is not being carried out by HSIPL for an
         additional fee as set out in Part C of Exhibit A.

2.4      HSIPL acknowledges that HS is under a contractual obligation to provide
         Transcribed Lines to its Client at the level of accuracy and within the
         turnaround time already agreed to between HS and its Client and as set
         forth in Clauses 5 and 6 of this Agreement. Consequently, HSIPL
         acknowledges that the provision of the services to the level of
         accuracy and within the time specified by HS with regard to each Job is
         the essence of this Agreement.

2.5      HSIPL agrees that it will not perform any services for any third party
         (without the written consent of HS) unless (a) HSIPL is in compliance
         with the terms of this Agreement (including without limitation the
         quality and TAT requirements of Clauses 5 and 6) for each of four
         consecutive quarters and (b) HS thereafter refuses to provide
         additional Committed Lines to HSIPL even though HSIPL provides
         reasonable evidence showing that it has additional capacity. If HSIPL
         meets the conditions set forth in the previous sentence, it may perform
         transaction services for third parties provided that (i) any such third
         party agreements, in HS's opinion, do not interfere with HSIPL's
         ability to provide services in connection with the Committed Lines
         pursuant to the terms hereof and (ii) such third party contracts are
         terminable by HSIPL upon 30 days' notice to such third party or
         parties. So long as HS accounts for 60% or more of HSIPL's revenue, if
         HSIPL is unable to provide services in compliance with the TAT and
         quality requirements hereof (in connection with the Committed Lines)
         during a period that HSIPL is performing transcription services for
         third parties (as permitted by this Agreement), HSIPL will terminate
         third party contracts until it can provide reasonable assurances to HS
         that it can and will comply with the TAT and quality requirements of
         this Agreement.

3.       SERVICES FEES.

3.1      HS shall for services as set out in Clause 2.1 and Part A of Exhibit A
         pay to HSIPL a fee to be calculated as set out in Part B of Exhibit A
         ("Services Fee").

3.2      The Services Fee shall be invoiced to HS on a monthly basis and shall
         be due seventy-five (75) days from the receipt by HS of the invoice
         therefore. In the event that HS fails to pay any amount when due, HSIPL
         shall charge HS interest on the unpaid and past due balance at a rate
         of LIBOR plus 3% per annum.

3.3      If the number of Lines transcribed by HSIPL hereunder in connection
         with Stat Jobs in any calendar month exceeds 5% of the aggregate Lines
         transcribed by HSIPL hereunder in such month, HS shall pay HSIPL US$
         0.012 per Transcribed Line over and above the Fees payable for similar
         non-Stat Jobs for all Transcribed Lines that exceed such 5% threshold.

3.4      Subject to the terms of Clause 9.7.1, if HS is required to pay any
         penalty to its customers in circumstances where HSIPL failed to deliver
         any Transcribed Lines within the applicable TAT, HSIPL shall pay an
         equal penalty to HS. If a portion of any such TAT penalty owed to a HS
         customer is due to HSIPL's failure to

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         comply with TAT requirements hereof and a portion is caused by HS, then
         HSIPL shall only be responsible for the portion of the TAT penalty
         caused by HSIPL's failure to comply with TAT (calculated on a pro rata
         basis based upon the number of Transcribed Lines that were not provided
         by HSIPL in compliance with the applicable TAT requirements.

3.4A     Subject to the terms of Clause 9.7.1 and notwithstanding anything to
         the contrary in this Agreement, HS shall not be required to pay for (a)
         any Transcribed Lines that are less than 90% accurate using the
         applicable percentage point system or scoring method described in
         Clause 6.1 or (b) any Transcribed Lines that are between 90% accurate
         and 95% accurate to the extent that the percentage of such Lines that
         is between 90% accurate and 95% accurate is greater than 5%. The
         parties agree that HS will test the quality of the Transcribed Lines
         quarterly, and may use any reasonable sampling method to test the
         quality of the Transcribed Lines. The parties agree that a random
         sample comprising at least 0.5% of the Lines produced by HSIPL for such
         quarter shall be a reasonable sampling method. The parties further
         agree that HS may extrapolate (i) that the percentage of Lines
         transcribed by HSIPL in the applicable sample that is 90% accurate is
         the same percentage of Lines transcribed by HSIPL for the applicable
         quarter that is 90% accurate and (ii) that the percentage of Lines that
         is between 90% accurate and 95% accurate is the same percentage of
         Lines transcribed by HSIPL for the applicable quarter that is between
         90% accurate and 95% accurate. (By way of example and not by way of
         limitation, if 3% of the Lines in a sample less than 90% accurate and
         an additional 7% of the Lines in the sample are between 90% accurate
         and 95% accurate, then HS may extrapolate that 3% of the Lines for the
         applicable quarter are less than 90% accurate and an additional 7% of
         the Lines for the applicable quarter are between 90% accurate and 95%
         accurate. In such an example, HS would not be required to pay HSIPL for
         the 3% of Lines for the quarter that were not 90% accurate and for an
         additional 2% (i.e., 7% less 5%) of the Lines that were between 90%
         accurate and 95% accurate).

3.5      HS will also pay to HSIPL a man-month rate of US$ 650 per primer
         deployed for Priming Activity for jobs not being transcribed for HSIPL
         for the calendar year 2004. This man-month rate shall increase by 2%
         per annum from the calendar year 2004 onwards, unless otherwise agreed
         by the parties.

3.6      HSIPL shall, for the services referred to in Clause 2.1A, pay HS a fee
         equal to US$ 0.03 per Transcribed Line.

         3.6.1    In the event HS is required to install any Software for any
                  such third party, HSIPL shall promptly reimburse HS (without
                  giving effect to any withholding or other taxes) for all fees
                  and expenses (including travel expenses) incurred by HS in
                  connection therewith.

         3.6.2    HSIPL shall provide HS with a monthly report containing
                  sufficient details to allow HS to verify the accuracy of the
                  calculation of amounts payable to HS hereunder. HSIPL, to the
                  extent it provides services to another person or entity other
                  than HS, shall also provide to HS a report setting forth the
                  amount of all Transcribed Lines to any party other than HS
                  during the month concerned. HS or its designated
                  representatives shall have the right at any time during
                  ordinary business hours, upon reasonable notice, to examine
                  and make copies of or extracts from the books, accounts and
                  records of HSIPL so far as they appertain to the Transcribed
                  Lines to any such third party and to the computation of fees
                  payable hereunder.

4.       PERFORMANCE OF THE SERVICES.

4.1      HSIPL shall train the Employees to perform services under this
         Agreement in accordance with the terms of this Agreement including the
         use of the technology and equipment and the transcription of Voice
         Files into Transcribed Lines.

4.2      HSIPL shall indicate to HS the details and number of Employees who are,
         in its opinion and based on the training imparted by HSIPL to the
         Employees, sufficiently qualified to carry out the Services in respect
         of Job and Work Type.

5.       TURNAROUND TIME.

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5.1      If the Client is using HS voice dictation system, TAT is measured from
         the time a dictation is ended (phone is hung up) until the finished
         document is delivered back to the Client, ready for printing. If HS is
         extracting from a Client-owned dictation device, TAT is measured from
         the time the dictation is extracted into HS system until the finished
         document is delivered back to the Client, ready for printing. Dictation
         other than that due to system failure at HSIPL's end, that has
         unintelligible voice at results in the work being sent to a
         collaborator or technical service is exempt from TAT requirements.
         Dictation that is not properly signed off, multiple dictation refusal
         of dictator to properly use the system or other dictator errors are
         exempt from TAT requirements.

5.2      Each Job must be returned to the Client, within the Turnaround Time
         specified in respect of the Client and the Work Type. HSIPL shall also
         complete the Stat Jobs within the Turnaround Time stipulated by the
         Client in respect of each Stat Job. HSIPL agrees to route the Stat Jobs
         to the next available transcriptionists and/or editor for immediate
         processing. Furthermore, should a Job; whether a Stat Job or otherwise,
         require proofreading in the US, then the Job must be delivered back to
         HS with sufficient time remaining so that HS can proofread the Job and
         still return the Job to the Client within the required TAT. HSIPL and
         HS shall mutually agree upon the required time for delivery for each
         Client. Unless otherwise mutually agreed, the Transcription TAT for
         Jobs requiring proofreading by HS shall be one-half of the Job TAT
         specified by the Client.

5.3      HSIPL commits to deliver Transcribed Jobs to HS within its contracted
         time requirements with the Client not less than 95% of the time
         (measured monthly as a percentage of Lines delivered within the time
         periods required by the terms of this Agreement), with no greater than
         1% of all reports being delivered more than 24 hours overdue. This is a
         standard with adjustments for the following factors:

         1)       Edits do not count in the return times
         2)       Dictation issues caused by the Client or its dictation system
                  supplier
         3)       Force Majeure
         4)       Clients that allow more turnaround-time will have their TAT
                  adjusted

         Notwithstanding the foregoing, the parties may agree to more stringent
         TAT terms where TAT requirements of any applicable customer are more
         stringent than identified above. In such cases, HS agrees to provide
         HSIPL with 30 days' notification of such additional TAT requirements.

6.       QUALITY.

6.1      HSIPL commits to deliver Transcribed reports to Clients that exceed 98%
         accuracy 95% of the time, with no reports less than 95% accurate. The
         percentage accuracy shall be based upon the applicable percentage point
         system or scoring method that HS has with the applicable HS customer,
         and shall be measured monthly, with adjustments for the following
         factors:

         1.       Edits do not count in the quality standards
         2.       Dictation issues caused by the client or its dictation system
                  supplier
         3.       Force Majeure

         Notwithstanding the foregoing, the parties may agree to more stringent
         quality requirements where quality requirements of any applicable
         customer are more stringent than identified herein. In such cases, HS
         agrees to provide HSIPL with 30 days notification of such additional
         quality requirements.

6.2      HS shall from time to time, at its discretion, proofread a random
         sample comprising up to 1% but in no event less than 1/2-% of the Lines
         produced by each of the Employees of HSIPL to determine the level of
         accuracy of the respective Employees ("QA Proofreading"). All costs
         incurred in respect of QA Proofreading shall be borne by HS.

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7.       TERM.

7.1      The term of this Agreement shall commence on the date hereof, and
         unless terminated pursuant to Clause 7.2 hereof shall continue to be
         in force through December 31, 2008.

7.2      This Agreement may be terminated by either party ("Non-Defaulting
         Party") upon written notice thereof in the event the other party
         ("Defaulting Party") is in material breach of the terms of this
         Agreement and if such breach is not remedied by the Defaulting Party
         within six (6) months from the Non-Defaulting Party's notice to the
         Defaulting Party to this effect. In the event of a termination of this
         Agreement, HS shall promptly pay HSIPL any Services Fee payable to
         HSIPL for services rendered prior to the effective date of such
         termination and HSIPL shall promptly pay any amount payable to HS under
         this Agreement.

7.3      For the avoidance of doubt, the parties agree that HS can only be in
         material breach of this Agreement for failure to pay amounts due
         hereunder (provided that following the payment of any disputed amounts
         hereunder by HS into escrow, HMIs shall not be permitted to so
         terminate).

8.       COVENANTS OF HS. HS, for itself, hereby covenants as follows:

8.1      Confidential Agreement. Unless HS has obtained HSIPL's prior written
         consent (which consent may be given or withheld in HSIPL's sole and
         absolute discretion), HS shall keep the terms and conditions of this
         Agreement confidential and prevent disclosure thereof to any Person
         other than its employees for purposes directly related to HS's
         operation of its business. HS's obligation of confidentiality shall not
         apply to information which:

         (i)      is obtained from a third party that did not make a disclosure
                  of such information (whether to HS, to a third party, or to
                  the general public) in violation of' a non-disclosure
                  obligation,

         (ii)     is in the public domain not as a result of action by HS,

         (iii)    is required to be disclosed by applicable law or an order
                  issued by a court of competent jurisdiction, provided,
                  however, that in the event of any such required disclosure. HS
                  shall immediately notify HSIPL thereof and shall cooperate
                  with HSIPL in any attempt to quash, limit or otherwise prevent
                  or limit disclosure,

         (iv)     insofar as it is disclosed to HS's employees, directors,
                  bankers, potential financiers or professional advisor as
                  confidential, provided that it shall ensure that such persons
                  treat such information as confidential.

8.2      Notice. Except as otherwise mutually agreed between the Parties, HS
         agrees that it shall give HSIPL at least thirty (30) days' notice
         before requiring HSIPL to commence work in respect of any new Clients
         or any new Work Type.

8.3      Forecast.

         8.3.1    HS shall provide HSIPL a three (3) months rolling forecast of
                  the Lines to be produced by HSIPL each month not later than
                  the tenth day of each month. HS and HSIPL must agree on
                  transcription volume objectives as well as proofing volume and
                  capacity objectives of HS not less than 30 days prior to the
                  end of each quarter for the next quarter.

         8.3.2    HS shall not be liable to compensate HSIPL under Clause 8.4 in
                  the event the shortfall in the volume of Lines as committed by
                  HS in terms of Clause 8.3.1 above is a result of the failure
                  on the part of HSIPL in informing HS within the time
                  prescribed in this regard in Clause 8.3.1, of the estimated
                  Capacity and proofreading requirements of HSIPL in the next
                  calendar quarter. In addition, HS will not be liable to
                  compensate HSIPL under Clause 8.4 in the event of the
                  shortfall

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                  of Lines for any calendar quarter if HSIPL fails to comply
                  with the quality and TAT standards set forth in this Agreement
                  over any calendar month in the previous calendar quarter.

8.4      Penalty.

         8.4.1    In the event HS fails to provide the Committed Lines or lines
                  as committed under Clause 8.3.1, HS shall compensate HSIPL for
                  such shortfall in the volumes of Lines at a rate of US$ 0.01
                  per Line within 120 days of receiving a written notice from
                  HSIPL in relation thereof and in accordance with Clause 8.4.2.

         8.4.2    In the event the shortfall in the volumes of Line is

                  (i)      less than 5% then there will not be any penalty,

                  (ii)     between 5% end 25% then the penalties shall be
                           payable for the first two quarters of default or
                           until the default continues, whichever is earlier,

                  (iii)    above 25% then the penalties shall be payable for the
                           first four quarters of default or until the default
                           continues, whichever is earlier and beyond such four
                           quarters is a material breach by HS.

8.5      [Intentionally Omitted)

8.4      New Client Review.

         8.6.1    The parties shall jointly review a sample of the Voice Files
                  received from a new Client for transcription and other terms
                  including TAT and quality norms and mutually agree upon
                  whether to accept or reject the Job.

         8.6.2    In the event HSIPL rejects the Job of a new Client and HS does
                  not agree with the grounds of rejection, then as long as HS
                  furnishes appropriate documents evidencing that another
                  transcriptionist performed on the same quality norms and TAT
                  offered to HSIPL, then the lines for that new customer shall
                  be taken into account towards Committed Lines under this
                  Agreement.

8.7      Compliance with the Regulations. HS shall to the extent applicable
         comply with HIPAA, and other applicable regulations in the United
         States for such locations where HSIPL, is providing transcription
         services to third party customers other than Clients.

9.       COVENANTS OF HSIPL.  HSIPL hereby covenants to HS as follows:

9.1      Forecast.

         9.1.1    HSIPL shall provide HS a three (3) months estimate of its
                  Capacity and estimated requirement for proofreading each month
                  not later than the twentieth day of each month. HS and HSIPL
                  must agree on the capacity objectives as well as proofing
                  volume and capacity objectives of HS not less than 30 days
                  prior to the end of each quarter for the next quarter.

         9.1.2    HSIPL, shall not be liable to compensate HS under Clause 9.7
                  in the event the shortfall in the capacity as committed by
                  HSIPL under this Clause 9.1 is a result of the failure on the
                  part of HS in informing HSIPL, within the time prescribed in
                  this regard in Clause 9.1.1, of the estimated capacity
                  requirements of HS in the next calendar quarter.

9.2      Confidential Information. Unless HSIPL has obtained HS's prior written
         consent (which consent may be given or withheld in HS's sole and
         absolute discretion), HSIPL shall keep the terms and conditions of this
         Agreement confidential and prevent disclosure thereof to any person
         other than its employees for purposes

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         directly related to HSIPL's operation of its business. HSIPL's
         obligation of confidentiality shall not apply to information which;

         (i)      is obtained from a third party that did not make a disclosure
                  of such information (whether to HSIPL, to a third party, or to
                  the general public) in violation of a non-disclosure
                  obligation,

         (ii)     is in the public domain not as a result of action by HSIPL,

         (iii)    is required to be disclosed by applicable law or an order
                  issued by a court of competent jurisdiction; provided,
                  however, that in the event of any such required disclosure,
                  HSIPL shall immediately notify HS thereof and shall cooperate
                  with HS in any attempt to quash, limit or otherwise prevent or
                  limit disclosure,

         (iv)     insofar as it is disclosed to its employees, directors,
                  bankers, potential financiers or professional, provided that
                  such party shall ensure that such persons treat such
                  information as confidential.

9.1      HSIPL undertakes and covenants that it shall, during the term of this
         agreement, provide the Services to HS or to any other person that HS
         may, in writing, nominate. HSIPL further undertakes and covenants that,
         in the event HSIPL has approved of the quality of the sample Voice
         Files of a particular Client, HSIPL is not entitled, at any subsequent
         point in time to raise any issues with regard to the quality of the
         Voice Files, nor shall any alleged lack of Voice File quality be deemed
         to be a material breach of the terms of this Agreement.

9.4      HSIPL agrees and undertakes that it shall maintain the quality of the
         services rendered to HS at such a level that these Services meet the
         quality standards of similar services purchased by HS in the United
         States of America. HS may conduct, at its discretion, quality control
         checks in addition to those specified herein at no cost to HSIPL.

9.5      Compliance with the Regulations. HSIPL shall to the extent applicable
         to it comply with HIPAA, and other applicable regulations in the United
         States. In addition, HSIPL shall comply with all business associate
         agreements executed by it, including the business associate agreement
         attached as Exhibit B. Furthermore, if HS determines that HSIPL must
         agree to additional terms to comply with HIPAA or any other privacy law
         or regulation, HSIPL shall agree to amend the terms or any Business
         Associates Agreement signed by it in order to so comply. HSIPL AND HS
         SPECIFICALLY ACKNOWLEDGE THAT HSIPL'S NON-COMPLIANCE WITH HIPAA OR ANY
         OTHER PRIVACY LAW OR REGULATION, COULD PRODUCE SIGNIFICANT AND
         POTENTIALLY CATASTROPHIC DAMAGES, IN CONSIDERATION OF PROVIDING
         SERVICES HEREUNDER, HSIPL EXPLICITLY ACKNOWLEDGES AND ASSUMES THE RISKS
         OF DAMAGES FOR HS'S BUSINESS LOSSES, LOSS OF REPUTATION, COSTS OF
         GOVERNMENT INVESTIGATION, COSTS OF NOTIFYING AFFECTED PERSONS OF
         PRIVACY RIGHT INFRINGEMENT, AND ANY OTHER TYPE OF LOSS ATTRIBUTABLE TO
         HSIPL'S VIOLATION OF HIPAA OR ANY OTHER PRIVACY LAW OR REGULATION,
         THESE DAMAGES ARE IN ADDITION TO ALL OTHER REMEDIES AVAILABLE TO HS
         INCLUDING THEORIES BASED IN CONTRACT OR TORT, INSURANCE RIGHTS, AND
         HSIPL'S INDEMNIFICATION DUTIES.

 9.6     HSIPL agrees that it shall at all times abide by all relevant local
         laws and regulations such as relate to the employment of the Employees
         in HSIPL. In particular, HSIPL shall abide by all the statutory
         provisions relating to provident funds, pension funds, the payment of
         wages, the payment of gratuity, the payment of bonus, employee
         insurance, the payment of minimum wages, statutory holidays, hours of
         employment, overtime employment, nightshift employment, leave
         regulations, conditions of the workplace and healthcare benefits. In
         addition, HSIPL agrees that in the event of any termination of the
         services or retrenchment or lay-off of any employee, HSIPL shall abide
         by the rules, regulations, practices and procedures required by law to
         be followed in respect of such termination, retrenchment or lay-off.

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9.7      Subcontracting. Except as agreed to by the parties in writing or as
         otherwise permitted in this Clause 9.7, HSIPL must not use a
         Subcontractor in the provision of any services hereunder.
         "Subcontractor" must be interpreted broadly to mean any person or
         business entity that performs part or all of HSIPL's obligations in
         providing services hereunder, and it includes any third parties engaged
         by the Subcontractor to provide any of Subcontractor's obligations.

         9.7.1    Upon advance written notice to HS and subject to Clause 9.7.2,
                  HSIPL may use certain Subcontractors if HSIPL complies with
                  all conditions of this paragraph: (a) HSIPL must warrant that
                  all Subcontractors are located entirely in India; (b) HSIPL
                  must bind Subcontractors in writing to confidentiality terms
                  similar to those contained in this Agreement and to the audit
                  provisions of this Agreement; and (c) HSIPL must obtain HIPAA
                  business associate agreements in a form approved by HS from
                  each Subcontractor.

         9.7.2    Notwithstanding the foregoing, if so stated in writing by HS,
                  HS can require that certain Jobs be performed without the use
                  of Subcontractors.

         9.7.3    HSIPL bears full responsibility and all liability for services
                  performed by Subcontractors. All Subcontractors are held to
                  HSIPL`s standards for service as outlined in the Agreement.
                  HSIPL is responsible for and is accountable for all Services
                  pursuant to the Agreement, regardless of whether it uses a
                  Subcontractor. Whenever HSIPL uses a Subcontractor, HSIPL
                  incurs all relevant penalties outlined in this Agreement for
                  under or non-performance of services.

         9.7.4.   Any agreement between HSIPL and a Subcontractor shall provide
                  that HS is a third party beneficiary of such agreement.

9.7.5    HS AND HSIPL SPECIFICALLY ACKNOWLEDGE THAT HSIPL'S NON-COMPLIANCE WITH
         THIS CLAUSE 9.7 COULD PRODUCE SIGNIFICANT AND POTENTIALLY CATASTROPHIC
         DAMAGES. IN CONSIDERATION OF THE FOREGOING, HSIPL EXPLICITLY
         ACKNOWLEDGES AND ASSUMES THE RISKS OF DAMAGES FOR HS'S BUSINESS LOSSES,
         LOSS OF REPUTATION, COSTS OF GOVERNMENT INVESTIGATION, COSTS OF
         NOTIFYING AFFECTED PERSONS OF PRIVACY RIGHT INFRINGEMENT, AND ANY OTHER
         TYPE OF LOSS ATTRIBUTABLE TO HSIPL'S USE OF A SUBCONTRACTOR FOR
         PERFORMANCE OF SERVICES. THESE DAMAGES ARE IN ADDITION TO ALL OTHER
         REMEDIES AVAILABLE TO HS INCLUDING THEORIES BASED IN CONTRACT OR TORT,
         INSURANCE RIGHTS, AND SUPPLIER'S INDEMNIFICATION DUTIES.

10.      CONSEQUENCES OF FORCE MAJEURE EVENTS.

10.1     In the event either party is unable to perform its obligations under
         this Agreement as a result of the occurrence of any Force Majeure
         event, the obligations of such party under this Agreement shall be
         suspended for the duration that the disruption due to the Force Majeure
         continues.

10.2     Should HS be unable to utilize HSIPL's capacity for 90 consecutive days
         because of a Force Majeure event, HSIPL may, in its sole discretion,
         contract for such capacity with another purchaser without penalty to
         HS.

11.      SEVERABILITY.  If any of the terms and conditions of this Agreement
         shall be held to be illegal, invalid or otherwise non-enforceable by a
         court of competent jurisdiction, all remaining terms and conditions
         shall remain in full force and effect.

12.      ENTIRE AGREEMENT; AMENDMENT. This Agreement and all exhibits annexed
         hereto, the Software Agreement, and any additional agreements related
         to confidentiality of the parties (or third parties) confidential
         information, contain the entire agreement between HS and HSIPL with
         respect to the subject matter hereof, supersede all prior oral and
         written understandings of the parties with respect to the subject
         matter hereof, and may only be amended by a writing executed by both HS
         and HSIPL.

                                       9
<PAGE>

13.      NOTICES. All notices, demands and other communications required or
         permitted hereunder shall be in writing, and shall be deemed to have
         been duly given: (i) on the date delivered if delivered in person; (ii)
         upon delivery, if sent overnight by prepaid Federal express or other
         similar prepaid and receipted overnight or express courier service;
         (iii) upon electronic acknowledgment of receipt, if delivered by
         facsimile; or (iv) fifteen (15) days after being sent by certified mail
         (or registered airmail in the case of international delivery), postage
         prepaid, properly addressed to the addressee as follows:

         If to HS:

         HealthScribe, Inc.
         21670 Ridgetop Circle #100
         Sterling
         Virginia 20166
         U.S.A.
         Attention: David E. Ehrhardt, Chief Operating Officer
         Facsimile: (1)(703) 480-1045

         If to HSIPL:

         Max HealthScribe Private Limited
         (after name change, HealthScribe India Private Limited)
         One HealthScribe Plaza
         Koramangala Block 8
         Bangalore 560 095
         India
         Attention: Suresh Nair
         Chief Operating Office
         Facsimile: (91) (80) 571-5345

         or, with respect to any of the foregoing, at such different address as
         shall be specified by notice given in the manner herein provided.
         Notwithstanding the foregoing, in the event the delivery of any notice
         is refused or returned unopened, having been addressed to the most
         recent address provided by the intended recipient in accordance with
         this Clause 13, such notice shall be deemed to have been delivered on
         the date of the attempted delivery.

14.      RELATIONSHIP OF PARTIES. The parties to this Agreement are independent
         contractors. Nothing in this agreement shall be deemed to create a
         relationship, between the parties of partnership agency, employment,
         franchise or joint venture. No party, solely by virtue hereof, has the
         authority to bind the other or to incur any obligation on the other's
         behalf.

15.      GOVERNING LAW; JURISDICTION.  This Agreement shall be governed by and
         construed under the substantive laws of India. Courts at Bangalore,
         India, shall have exclusive jurisdiction with respect to any disputes
         arising out of or in connection with this Agreement.

16.      NO WAIVER. No failure on the part of HSIPL or HS to exercise, and no
         delay in exercising any right, power or remedy hereunder shall operate
         as or be deemed a waiver thereof by such party.

17.      HEADINGS. The headings in the clauses of this Agreement are inserted
         for convenience only and in no way alter, amend, modify, limit or
         restrict the contractual obligations of the parties.

18.      RULES OF CONSTRUCTION. Unless the context otherwise requires, "or" is
         not exclusive, and references to clauses or subclauses refer to clauses
         or subclauses of this Agreement.

19.      COUNTERPARTS. This Agreement may be executed in one or more
         counterparts, each of which, when so executed, shall be deemed an
         original but all of which shall constitute one and the same instrument.
         Signature pages transmitted by facsimile shall be deemed originals.

                                       10
<PAGE>

20.      TERMINATION OF PRIOR AGREEMENT. The terms of the Services Agreement
         dated July 10, 2000 are hereby terminated and deleted, and amended and
         restated in the form herein,

21.      NO THIRD PARTY BENEFICIARIES. There are and shall be no third party
         beneficiaries of this Agreement.

22.      CONFIDENTIALITY. HS and HSIPL agree to take all steps reasonably
         necessary to hold each others Proprietary Information in trust and
         confidence. By way of illustration but not limitation "Proprietary
         Information" includes (a) trade secrets, inventions, mask works, ideas,
         processes, formulas, source and object codes, data, programs, other
         works of authorship, know-how, improvements, discoveries, developments,
         designs and techniques; and (b) information regarding plans for
         research, development, new products, marketing and selling, business
         plans, budgets and unpublished financial statements, licenses, prices
         and costs, suppliers and customers. HS and HSIPL agree never to,
         directly or indirectly, use, disseminate, disclose, lecture upon or
         publish, or divulge in any way, any of the other's Proprietary
         Information disclosed to HS or HSIPL or known to HS or HSIPL as a
         consequence of or through HS's relationship with HSIPL and the
         reciprocal. Upon termination of this Agreement for any reason, each of
         HS and HSIPL covenants and agrees that all training materials and other
         repositories of Proprietary Information of the other then in HS's or
         HSIPL's possession shall be returned to the owner of the Proprietary
         Information on or before the effective date of termination. The
         foregoing is in addition to any other confidentiality agreement between
         the parties hereto.

23.      SURVIVAL. he Clauses 3.4, 3.6, 3.6.1, and 11 though 22 shall survive
         termination and/or early expiration of this Agreement.

                         [Signatures on following pages]

                                       11

<PAGE>

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

HEALTHSCRIBE, INC.

         /s/  David E. Ehrhardt
--------------------------------------------
Name:  David E. Ehrhardt
Title: President & CEO

MAX HEALTHSCRIBE PRIVATE LIMITED

         /s/  Suresh Nair
--------------------------------------------
Name: Suresh Nair
Title: CEO & Managing Director

                                       12

<PAGE>

EXHIBIT A

PART A
PRODUCTION CAPACITY:

In 2004, HSIPL currently intends that it will provide Committed Capacity and HS
currently intends that it will provide the Committed Lines based on the terms of
HS's annual budget. This budget provides for HSIPL to transcribe 118 million
lines. Notwithstanding the foregoing, the parties expect that they will amend
this Part A of Exhibit A quarterly based upon revised forecasts of the parties
(sec Clauses 8.3 end 9.1) and the quality and TAT of the services performed by
HSIPL.

For planning purposes, HS agrees to provide HSIPL with an annual estimate of
budgeted volumes for subsequent years no later than October 1 of each calendar
year.

PART B
LINE RATE:

Subject to the terms of tilts Agreement including Clause 3.4A (which requires
certain levels of accuracy before payment is required), HS will pay to HSIPL per
Line (based upon the proposed production capacity above) as follows:

January 1 - March 31, 2004          $0.1079 per Line
April 1 - December 31, 2004         $0.1025 per Line

Both parties agree to review the contracted Line rate annual and, if mutually
agreed upon, to adjust the Line rate. The parties intend that the Line rate will
reflect the general market price (based upon the pricing provided by competitors
in India), provided that the parties shall not be required examine such then
current general market price more than once per year.

Both parties agree that the above Line rates reflect the fact that HS will
proofread 4% (up to a maximum of 4.7 million) of the Transcribed Lines. If
additional proofreading is required in order to ensure that HSIPL provides its
services in compliance with this Agreement, then the parties may adjust the Line
rate to reflect the actual additional costs of HS.

PART C:

HS will also pay to HSIPL a man-month rate of US$ 650 per Primer deployed for
Priming Activity for jobs not being transcribed for HSIPL for the calendar year
2004. This man-month rate shall increase by 2% per annum from the calendar year
2004 onwards, unless otherwise agreed by the parties.

                                       13

<PAGE>

                      FIRST AMENDMENT TO SERVICES AGREEMENT

         THIS FIRST AMENDMENT TO SERVICES AGREEMENT (this "First Amendment") is
entered into and made effective as of May 18, 2005 (the "Effective Date"), by
and between HealthScribe, Inc., a Delaware corporation (hereinafter referred to
as "HealthScribe"), and HealthScribe (India) Private Limited, a company
registered under the Indian Companies Act, 1956 (hereinafter referred to as
"HSIPL").

         WHEREAS, HealthScribe and HSIPL entered into that certain Services
Agreement effective as of December 18, 2003 (the "Services Agreement");

         WHEREAS, HealthScribe and HSIPL now desire to amend the Services
Agreement, as more particularly set forth herein.

         NOW, THEREFORE, in consideration of the agreements set forth below and
other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the parties hereby agree as follows:

         1. Defined Terms. Capitalized terms used in this First Amendment and
not otherwise defined herein have the meanings given to them in the Services
Agreement.

         2. Section 3.2. Effective as of December 18, 2003, Section 3.2 of the
Services Agreement is hereby deleted in its entirety and replaced with the
following:

         The Services Fee shall be invoiced to HealthScribe on a monthly basis
         and shall be due seventy-five (75) days from the receipt of
         HealthScribe of the invoice therefore.

         3. Exhibit A. Exhibit A, Part B, is hereby deleted in its entirety and
replaced with the following:

         Subject to the terms of this Agreement including Clause 3.4A (which
         requires certain levels of accuracy before payment is required),
         HealthScribe will pay to HSIPL per Line (based on the proposed
         production capacity above) the amount of $0.1025 per Line.

         Both parties agree to review the contracted Line rate annually and, if
         mutually agreed upon, to adjust the Line rate. The parties intend that
         the Line rate will reflect the general market price (based upon the
         pricing provided by competitors in India), provided that the parties
         shall not be required to examine such then current general market price
         more than once per year.

         Both parties agree that the above Line rate reflects the fact that
         HealthScribe will proof read 4% (up to a maximum of 4.7 million) of the
         Transcribed Lines. If additional proof reading is required in order to
         ensure that HSIPL provides its services in compliance with this
         Agreement, then the parties may adjust the Line rate to reflect the
         actual additional costs of HealthScribe.

         4. Ratification. Except as specifically amended above, the Services
Agreement shall remain in full force and effect and is hereby ratified and
confirmed.

<PAGE>

         5. Construction. Upon execution of this First Amendment by the parties,
on and after the date hereof, each reference in the Services Agreement to "this
Agreement," "hereunder," "hereof," "herein" or words of like import, and each
reference in the other documents entered into in connection with the Services
Agreement, shall mean and be a reference to the Services Agreement, as amended
hereby.

         6. Governing Law. This First Amendment shall be construed and enforced
according to the substantive laws of the State of Tennessee and in courts
situated in that state. In the event of any conflict between the provisions of
this First Amendment and applicable law (or binding interpretation thereof),
this First Amendment shall be modified to the extent necessary to comply with
such applicable law.

         7. Entire Agreement; Counterparts; Modification. This First Amendment
together with the Services Agreement contains the complete expression of the
agreement between the parties with respect to the matters addressed herein and
there are no promises, representations, or inducements except as herein
provided. Nothing contained herein shall give, or is intended to give, any
rights of any kind to any third party. This First Amendment may be executed in
two or more counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument. This First
Amendment is hereby incorporated into the Services Agreement by reference. In
the event of any conflict between the provisions of this First Amendment and the
provisions of the Services Agreement, the provisions of this First Amendment
shall control. The terms and provisions of this First Amendment may not be
modified, supplemented, or amended except in writing signed by all parties
hereto. All terms of this First Amendment shall be binding upon and inure to the
benefit of and be enforceable by the respective successors and permitted assigns
of the parties.

         IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be executed by their duly authorized representatives as of the dates written
below.

HEALTHSCRIBE, INC.                         HEALTHSCRIBE (INDIA) PRIVATE LIMITED

By:    /s/ Gregory T. Stevens              By:      /s/ Suresh Nair
   ---------------------------------          ----------------------------------
(Authorized Signature)                     (Authorized Signature)

         Gregory T. Stevens                         Suresh Nair
------------------------------------       -------------------------------------
Printed Name                               Printed Name

Chief Administrative Officer                        CEO & M.D.
------------------------------------       -------------------------------------
Title                                      Title

         5/25/05                                    8/5/2005
------------------------------------       -------------------------------------
Date                                       Date<PAGE>

                                                                    Exhibit 10.3

                           SECOND AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

                            EFFECTIVE MARCH 20, 2006

     This SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") is
entered into as of March 20, 2006 (the "Effective Date"), by and between
METRETEK TECHNOLOGIES, INC., a Delaware corporation (the "Corporation"), and W.
PHILLIP MARCUM (the "Officer," and collectively with the Corporation, the
"Parties").

                                    RECITALS

     WHEREAS, Officer is a founder of the Corporation and was instrumental in
the formation of the Corporation and its subsidiaries and in creating its
business and procuring its capital; and

     WHEREAS, the continued involvement of Officer in the Corporation's ongoing
business is critical to the success of the Corporation; and

     WHEREAS, the Corporation and Officer previously entered into that certain
Amended and Restated Employment Agreement, dated as of November 1, 2004, as
amended December 5, 2005 (as the same may hereafter be amended, restated or
otherwise modified from time to time, the "Employment Agreement"); and

     WHEREAS, the Compensation Committee of the Board of Directors authorized
and approved of additional amendments to the Employment Agreement, including
without limitation the extension of the term of employment and the modification
of certain aspects of the compensation of Officer, and has determined that it is
in the best interests of the Corporation to restate the Agreement to reflect the
most recent as well as previous amendments; and

                                    AGREEMENT

     NOW, THEREFORE, in reliance upon all of the recitals, covenants, terms and
arrangements stated herein, the Parties covenant and agree as follows:

     1. Agreement to Serve.

          1.1 Title. During the Employment Period, the Corporation shall employ
Officer and Officer shall serve in the employ of the Corporation as its
President, Chief Executive Officer and

                                       1

<PAGE>

Chairman of the Board or under such other titles or executive offices as shall
be designated by the Board of Directors during the term of Officer's employment
hereunder.

          1.2 Duties. Officer shall assume and discharge the responsibilities of
the President, Chief Executive Officer and Chairman of the Board (as set forth
in the Bylaws of the Corporation), as well as such other responsibilities as may
be assigned to him by the Board of Directors of the Corporation. Officer shall
perform such responsibilities to the best of his abilities and shall devote his
entire professional time and attention to the good faith best efforts
performance of his responsibilities. Officer will engage in no other business or
activity for compensation during the term of this Agreement except with the
prior written consent of the Board of Directors. Officer shall always be subject
to the directions of the Board of Directors in the performance of his
responsibilities, and nothing herein shall affect the power of the Board of
Directors to limit, alter, restrict or remove the authority of the Officer.

     2. Terms of Employment.

          2.1 Basic Term. The term of Officer's employment under this Agreement
shall continue until December 31, 2009, unless terminated earlier pursuant to
this Section 2 (the "Employment Period"); provided, however, that unless the
Corporation or Officer gives to the other written notice at least six months
prior to the expiration of such term or of any successive one-year extension
term as provided hereafter, the Employment Period shall be automatically
extended for successive one-year terms, unless and until terminated pursuant to
this Agreement.

          2.2 Death. Officer's employment hereunder shall automatically
terminate upon his death, and the Corporation shall pay to his designated
beneficiaries (or, if none, to his estate) the pro rata portion of his Base
Salary and all other accrued and vested but unpaid compensation through the date
of his death, plus an amount equal to the Severance Amount (as such term is
defined below) computed and payable as provided in Section 2.11.

          2.3 Disability. The Corporation shall have the right, in its sole
discretion, to terminate Officer's employment hereunder in the event of
Officer's "Disability" upon giving at least 30 days written notice to Officer of
its intention to terminate Officer's employment. In such event, the Corporation
shall pay to Officer the pro rata portion of his Base Salary and all other
accrued and vested but unpaid compensation through the date of termination, plus
an amount equal to the Severance Amount computed and payable as provided in
Section 2.11. For purposes of this Agreement, "Disability" means the physical or
mental inability of Officer, due to illness, accident or other incapacity, to
effectively perform the essential functions of his duties hereunder for any
period of 90 consecutive days, or 180 days during any twelve-month period, or
which results from an incapacity determined to be total and permanent as
determined by an independent physician selected by the Company.

          2.4 By the Corporation for Cause. The Corporation shall have the
right, in its sole discretion, to terminate Officer's employment hereunder at
any time for "Cause" immediately upon giving written notice of termination to
Officer. Upon his termination for Cause, Officer shall be entitled to receive
only the accrued but unpaid portion of his Base Salary through the date of
termination, plus any accrued and vested but unpaid bonuses and other
compensation as of such date, but Officer shall not be entitled to any other
bonus or incentive compensation for the fiscal year in which he was terminated.
In addition, any unvested portion of any option to purchase shares of common
stock, par value $.01 per

                                       2

<PAGE>

share, of the Corporation (the "Stock Options") shall expire without vesting.
Officer shall have no right to receive any other or further compensation or
benefits. For purposes of this Agreement, "Cause" means only the following:

               (a) The failure or refusal by Officer to perform any of his
duties hereunder, or the breach by Officer of any of his obligations, covenants,
representations, warranties or acknowledgments hereunder, which failure, refusal
or breach remains unremedied or uncured for a period of twenty (20) business
days after specific written notice thereof is given to Officer by the Board or
the Chairman;

               (b) Any act of dishonesty, disloyalty, insubordination, fraud,
breach of fiduciary duty or bad faith by Officer that is materially detrimental
to the Corporation or that results in substantial personal enrichment of
Officer; or

               (c) The conviction of Officer, or the entering of a guilty plea
or a plea of no contest by Officer with respect to (i) a felony, or (ii) a
misdemeanor that involves theft, fraud or dishonesty, results in Officer's
imprisonment or impairs Officer's ability to perform his duties hereunder or
damages the reputation or business of the Company.

          2.5 By the Corporation Without Cause. The Corporation shall have the
right, in its sole discretion, to terminate Officer's employment hereunder at
any time effective upon the giving of written notice of such termination to
Officer (or at such later date as the notice provides). In such event, Officer
shall be entitled to receive the following: (a) all amounts of the Base Salary
and any bonuses and other earned but unpaid compensation that are earned,
accrued or vested but unpaid through the date of termination; (b) an amount
equal to the Severance Amount, computed and payable as provided in Section 2.11;
and (c) any rights and benefits of any of the employee benefits earned, accrued
or vested (including under any plans in which he was participating) as of the
date of such termination, subject to the terms and conditions of such plans and
benefits, but Officer shall not attain vested status in any plans or benefits in
which he is not vested on the date of termination.

          2.6 Termination by Officer. Officer agrees not to voluntarily
terminate his employment hereunder except by giving at least sixty (60) days
written notice to the Company, except as provided in Section 2.8. Upon such
voluntary termination by Officer, Officer shall be entitled to receive the
following: (a) the accrued but unpaid portion of his Base Salary and any bonuses
and other compensation that are earned, accrued or vested but unpaid through the
date of termination; (b) an amount equal to the Severance Amount, computed and
payable as provided in Section 2.11; and (c) any rights and benefits of any of
the employee benefits earned, accrued or vested (including under any plans in
which he was participating) as of the date of such termination, subject to the
terms and conditions of such plans and benefits, but Officer shall not attain
vested status in any plans or benefits in which he is not vested on the date of
termination.

          2.7 Compensation Upon Termination of Employment Following a Change in
Control.

               (a) Amount of Compensation. If, during the Employment Term, a
"Change in Control" (as defined below) of either the Corporation or Metretek
occurs, and within three years after such date the Corporation shall terminate
Officer's employment without "Cause" or the employment of Officer shall be
terminated by Officer for "Good Reason" (as defined in below), then:

                    (i) The Corporation shall pay to Officer in a lump sum in
cash within 30 days after the date of termination the aggregate of the following
amounts:

                                       3

<PAGE>

                         (A) To the extent not theretofore paid, the Base Salary
through the date of termination at the rate in effect on the date the notice of
termination was given along with any earned but unpaid bonuses or other
compensation; and

                         (B) the Severance Amount; and

                         (C) In the case of compensation previously deferred by
Officer, all amounts of such compensation previously deferred and not yet paid
by the Company; and

                    (ii) The Corporation shall, promptly upon submission by
Officer of supporting documentation, pay or reimburse to Officer all costs and
expenses paid or incurred by Officer prior to the date of termination which
would have been payable under this Agreement if Officer's employment had not
terminated; and

                    (iii) For a period of two years from the date of
termination, Officer and his family shall be permitted to continue to
participate in all life, accidental death, disability, medical, dental and other
insurance plans of the Company. If, despite the provisions of this Section 2.7,
benefits shall not be available under any of such plans because Officer is no
longer an employee of the Company, then the Corporation itself shall, to the
extent necessary, pay or provide for payment of benefits to Officer and/or
Officer's family, or where applicable, pay or provide to Officer and/or
Officer's family the difference between the benefits payable pursuant to this
Section 2.7 and the benefits actually payable pursuant to the terms of such
plans, in each case at the time such payments would be payable pursuant to the
terms of such plans, programs and policies.

               (b) Definition of Change in Control. For the purpose of this
Agreement, a "Change in Control" of the shall be deemed to have occurred only
if:

                    (i) Any person or group (as such terms are used in Sections
13 (d) (3) and 14 (d) (2) of the Securities Exchange Act of 1934, as amended
(the "Exchange Act") acquires the beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of 50%
or more of the aggregate voting power of all classes of the Corporation's then
outstanding voting securities entitled to vote generally in the election of
directors of the Corporation; provided, however, that the following acquisitions
shall not constitute a Change in Control: (I) any acquisition directly from the
Corporation (excluding an acquisition by virtue of the exercise of a conversion
privilege), (II) any acquisition by the Corporation or any subsidiary of the
Corporation, or (III) any acquisition by any employee benefit plan (or related
trust) for employees or any subsidiary of the Corporation; or

                    (ii) Individuals who, as of the date hereof, constitute the
Board of Directors of the Corporation (the "Board" generally, and as of the date
hereof, the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the date hereof whose election, or nomination for election by the
Corporation's stockholders, was approved by a vote of at least three-fifths of
the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of the Corporation, as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Exchange Act) shall be, for purposes of
this Agreement, considered as though such individual were a member of the
Incumbent Board; or

                                       4

<PAGE>

                    (iii) Approval by the Corporation of a reorganization,
merger, combination, or consolidation, in each case, unless, following such
reorganization, merger, combination, or consolidation, (A) more than 50% of,
respectively, the then outstanding shares of common stock of the corporation or
other entity resulting from such reorganization, merger, combination or
consolidation and the aggregate voting power of the then outstanding voting
securities of the resulting corporation or other entity entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were
the beneficial owners, respectively, of the outstanding Common Stock and
outstanding voting securities of the Corporation immediately prior to such
reorganization, merger, combination, or consolidation, in substantially the same
proportion as their ownership immediately prior to such reorganization, merger,
combination, or consolidation, and (B) at least a majority of the members of the
board of directors of the corporation or other entity resulting from such
reorganization, merger, combination or consolidation were members of the
Incumbent Board at the time of the execution of the initial agreement providing
for such reorganization, merger, combination or consolidation; or

                    (iv) Approval by the Corporation of the sale or other
disposition of all or substantially all of the assets of the Corporation, other
than to a corporation or other entity with respect to which following such sale
or other disposition the conditions described in clauses (A) and (B) of Section
2.7(b)(iii) are satisfied.

               (c) Definition of Good Reason. For purposes of this Agreement,
"Good Reason" means:

                    (i) (A) The assignment to Officer of any position,
authority, duties or responsibilities inconsistent in any respect with Officer's
position (including, without limitation, status, offices, title and reporting
requirements), authority, duties or responsibilities, prior to the Change in
Control, or (B) any other action by the Corporation which results in a
diminution in such position, authority, duties or responsibilities, other than
an insubstantial and inadvertent action which is remedied by the Corporation
promptly after receipt of notice thereof given by Officer;

                    (ii) Any reduction in Officer's Base Salary or in the extent
of Officer's entitlement to the employee benefits, expenses, fringe benefits or
perquisites referred to in Section 3;

                    (iii) The Corporation's requiring Officer to be based at an
office location or to maintain his personal residence other than where it is on
the date of the Change in Control;

                    (iv) The failure of the Corporation to obtain a satisfactory
agreement from any successor to the Corporation to assume and agree to perform
this Agreement;

                    (v) The imposition on Officer of business travel obligations
substantially greater than his business travel obligations during the fiscal
year prior to the Change in Control;

                    (vi) Any purported termination by the Corporation of
Officer's employment other than as expressly permitted by this Agreement; or

                    (vii) Any other failure by the Corporation to comply with
any provision of this Agreement, other than an insubstantial and inadvertent
failure which is remedied by the Corporation promptly after receipt of notice
thereof given by Officer.

                                       5

<PAGE>

          2.8 Expiration of Employment Term. In the event of the expiration of
the Employment Term (including any renewal or extension period hereunder)
without further renewal or extension, Officer shall be entitled to receive (a)
all amounts of the Base Salary and any bonuses and other compensation earned,
accrued or vested but unpaid through the date of expiration, (b) the Severance
Amount, computed and payable as provided in Section 2.11, and (c) any rights and
benefits of any of the employee benefits earned, accrued or vested (including
under any plans in which he was participating) as of the date of such
termination, subject to the terms and conditions of such plans and benefits, but
Officer shall not attain vested status in any plans or benefits in which he is
not vested on the date of termination.

          2.9 No Further Obligation to Officer. The payments and benefits (if
any) required to be made or provided to Officer pursuant to this Section 2 shall
be in full and complete satisfaction of, and shall constitute the full
settlement and release of the Corporation by Officer with regard to, all
obligations of the Corporation owed to Officer pursuant to this Agreement. After
the date of termination of Officer's employment hereunder, the Corporation shall
have no further obligations to Officer under this Agreement except as otherwise
set forth herein.

          2.10 Survival of Officer's Obligations. Notwithstanding the
termination of this Agreement by either party hereto for any reason, the
obligations of Officer under Section 6 and the other provisions thereof shall
survive the termination or expiration of this Agreement or Officer's employment
hereunder and shall remain in full force and effect for the period provided
therein.

          2.11 Computation and Payment of Severance Amount. For purposes of this
Agreement, the term "Severance Amount" shall mean an amount equal to three (3)
times the sum of the following: (i) the Base Salary of Officer as in effect on
the date Officer's employment terminates, plus (ii) the average of bonus awarded
to Officer for the three fiscal years of the Corporation immediately preceding
the fiscal year in which Officer's employment is terminated (or, if the average
bonus is greater, for the last three fiscal years of the Corporation including
the fiscal year in which Officer's employment is terminated). The Severance
Amount shall be payable in approximately equal installments in accordance with
the Company's customary payroll practices over the six (6) years following the
termination of Officer's employment hereunder, provided if the Severance Amount
is payable under Section 2.7 hereof, then it shall be payable in approximately
equal installments in accordance with the Company's customary payroll practices
over the three (3) years following the termination of Officer's employment
hereunder.

     3. Compensation.

          3.1 Base Salary. During the Employment Period, the Corporation shall
pay to Officer as compensation for the services to be performed by Officer a
salary at the annual rate of $375,000 in U.S. currency. Such salary shall be
subject to further annual upward adjustment at the discretion of the Board.
Officer's salary shall be payable in equal semi-monthly installments on or
before the 15th day and the last day of each month during which Officer is
employed. Should Officer be employed for only a portion of any month, Officer's
salary shall be prorated to reflect the actual days of employment during such
month.

          3.2 Incentive Compensation. The Corporation shall establish an
Incentive Compensation Fund to be administered by the Compensation Committee of
the Board of Directors. The Compensation Committee shall determine the
distribution of the payment of incentive compensation (the "Incentive
Compensation") to officers and key employees of the Corporation as follows:

                                       6

<PAGE>

               3.2.1 In the event that the Corporation enters into a merger or
          other transaction which results in a change of control, the sale of
          substantially all of its assets or similar transactions, the
          Compensation Committee shall determine the amount of Incentive
          Compensation pursuant to the formula set forth in section 3.2.2 and
          shall immediately upon consummation of such transaction, distribute
          100% of the Incentive Compensation to each officer or employee who
          had, in the Compensation Committee's judgment, made substantial
          contribution to the Corporation's success and increase in value. In
          the event of the sale of a significant subsidiary, or substantially
          all of the assets of a significant subsidiary, a similar pro rata
          distribution shall be required. Such payments shall be made on a pro
          rata basis in the event of a death, disability or termination (other
          than for cause) or at such other times as the Compensation Committee
          may determine. The Compensation Committee may, in its discretion,
          determine that up to 50% of any payment be made in shares of Common
          Stock.

               3.2.2 The total amount of Incentive Compensation available for
          distribution shall be determined according to the following formula
          (an example of which is attached hereto as Exhibit A):

                    [Fair Market Value per Common Stock Equivalent ("FMV") Base
                    Price per Common Stock Equivalent ("BP")] X Outstanding
                    Common Stock Equivalents X the applicable percentage as set
                    forth below:

<TABLE>
<S>                                                              <C>
                    The portion of FMV equal to or less than
                    the ratio of FMV to BP; plus                  0%

                    The portion of FMV falling in the range of
                    1 to 3 for the ratio of FMV to BP; plus      10%

                    The portion of FMV falling in the range of
                    3 to 4 for the ratio of FMV to BP; plus      15%

                    The portion of FMV which exceeds 4 for
                    the ratio of FMV to BP                       20%
</TABLE>

               3.2.3 BP shall mean $10.04 per Share, adjusted to reflect stock
          dividends, stock splits and similar events occurring after the date
          hereof.

               3.2.4 For purposes hereof, FMV shall be defined as the actual or
          allocated transaction price per equivalent share of Common Stock (the
          total number of shares of Common Stock outstanding plus the balance of
          dilutive shares of Common Stock into which outstanding shares of
          Preferred Stock are convertible), or the average closing bid price of
          the Corporation stock during the 30 days preceding the determination
          date, or such other price as may be reasonably determined by the
          Compensation Committee. In the event of a sale of a significant
          subsidiary or substantially all of the assets of a significant
          subsidiary, then FMV and the part of the BP attributable to that
          significant subsidiary shall be reasonably determined by the
          Compensation Committee.

                                       7

<PAGE>

               3.2.5 Officer's right to participate in the Incentive
          Compensation Fund shall be fully vested as of the date hereof.

          3.3 Benefits. During the Employment Period and for any other time
required by law, Officer shall be entitled to participate, upon the standard
terms and conditions of such plans in all regular and key employee benefit plans
established by the Corporation for its salaried employees, including, without
limitation, the following:

               3.3.1 Stock Options. The Corporation shall use its best efforts
          to establish and maintain one or more stock option plans (the "Stock
          Option Plans") for the purpose of granting options to key employees,
          management and directors. The Stock Option Plans shall provide for
          incentive stock options and such other options and awards as the Board
          of Directors, in its discretion, may determine. The Stock Option
          Committee or other appropriate Committee of the Board of Directors
          shall from time to time grant to Officer options to purchase shares of
          Common Stock or other awards under the Stock Option Plans as it shall
          in its discretion deem appropriate.

               3.3.2 Expenses. The Corporation shall reimburse Officer for any
          reasonable business expenses wholly, exclusively and necessarily
          incurred by him in the performance of his duties for the Corporation.
          The Corporation shall also reimburse Officer for any reasonable cost
          incurred to establish or maintain membership in any professional
          association necessary to maintain Officer's professional
          qualifications. Officer shall be required to provide reasonable
          evidence of expense prior to reimbursement.

     4. Confidentiality. The Officer shall not, during the Employment Period, or
at any time thereafter, directly or indirectly use, divulge, furnish or make
accessible to anyone other than the Corporation, its directors or officers
(otherwise than in the regular course of the business of the Corporation), any
knowledge or information regarding any confidential or secret ideas, activities,
projects, plans, techniques, methods, reports, customer names or lists,
financial or sales information or other material relating to the business or
activities of the Corporation. Officer, upon leaving the employ of the
Corporation, shall not take with him any books, records, data, reports, letters,
memoranda, notes or other writings or documents whatsoever, or copies thereof,
which reflect or deal with any secret, proprietary or confidential information
or material relating to the business or activities of the Corporation.

     5. Inventions, Discoveries and Improvements. All inventions, discoveries
and improvements, whether patentable or unpatentable, made, devised or
discovered by Officer, whether by himself or jointly with others, during the
Employment Period and the Restricted Period (as defined in Section 6 below),
relating or pertaining in any way to the business of his employment, shall
promptly be disclosed in writing to the Board of Directors and are to rebound to
the benefit of the Corporation and become and remain its sole and exclusive
property. Officer agrees to execute any assignments to the Corporation or its
nominee of his entire right, title and interest in and to any such inventions,
discoveries and improvements and to execute any other instruments and documents
requisite to or desirable in applying for and obtaining patents with respect
thereto in the United States and in all foreign countries, at the request and
expense of the Corporation. Officer further agrees to cooperate to the extent
and in the manner requested by the Corporation in the prosecution or defense of
any patent claims or any litigation or other proceeding

                                       8

<PAGE>

involving any inventions, trade secrets, processes, discoveries or improvements
covered by this Agreement, but all expenses thereof shall be paid by the
Corporation. The terms of this Section 5 shall continue for one year after the
termination of the Employment Period.

     6. Covenant Not to Compete. During the Employment Period and (i) for a
period of three (3) years after the Employment Period, or (ii) if the
Corporation for any reason defaults for sixty (60) days in its severance
obligations to Officer hereunder, for a period after the Employment Period
ending upon the expiration of such default period (the "Restricted Period"),
Officer shall not, alone, together or in association with others, as owner,
shareholder, employee, officer, director, partner, lender, investor, consultant,
principal, agent, independent contractor, co-venturer or in any other capacity,
directly or indirectly, engage in, have a financial interest in or be in any way
connected or affiliated with, or render advice or service, to, any person, firm
or business or enterprise which is in competition with any subsidiary of the
Corporation. This consent shall apply in every geographic area in the world in
which the Corporation is conducting or has conducted business at any time since
the Effective Date. During the aforementioned period, Officer also shall not
call upon, cause to be called upon, solicit with another in the securing of any
client, past or present, or provide client of the Corporation for the purpose of
coming with the Corporation. Notwithstanding the foregoing, nothing herein
contained shall prevent Officer from purchasing and holding for investment less
than five percent (5%) of the shares of any corporation, the shares of which are
regularly traded either on a national securities exchange, on the Nasdaq Stock
Market or in the over-the-counter market. In the event Officer is terminated by
the Corporation without cause, then the period of this covenant shall be limited
to the period of time during which Employee shall receive compensation or
benefits from the Corporation under the provisions of this Agreement.

     7. Miscellaneous.

          7.1 Severability. If any provision of this Agreement is held
unenforceable, invalid or void to any extent for any reason, such provision will
remain in full force and effect to the maximum extent allowable, if any, and the
enforceability or validity of the remaining provisions of this Agreement will
not be affected thereby.

          7.2 Withholdings. All compensation and benefits to Officer hereunder
shall be reduced by all federal, state, local and other withholdings and similar
taxes and payments required by applicable law.

          7.3 Arbitration. Except as provided in this Section 7.3, the Parties
hereby submit all controversies, claims and matters of difference in any way
related to this Agreement or the performance or breach of the whole or any part
hereof to arbitration in Denver, Colorado, according to the rules and practices
of the American Arbitration Association from time to time in force. If such
rules and practices shall conflict with the Colorado Rules of Civil Procedure or
any other provisions of Colorado law then in force, such Colorado rules and
provisions shall govern. Arbitration of any such controversy, claim or matter of
difference shall be a condition precedent to any legal action thereon. This
submission and agreement to arbitration shall be specifically enforceable.
Awards shall be final and binding on all parties to the extent and in the manner
provided by Colorado law. All awards may be filed by any party with the Clerk of
the District Court in the City and County of Denver, Colorado, and an
appropriate judgment entered thereon and execution issued therefor. At the
election of any Party, said award may also be filed, and judgment entered there
one and execution issued thereof, with the clerk of one or more other courts,
state or federal, having jurisdiction over the Party against whom such an award
is rendered or its property.

                                       9

<PAGE>

          7.4 Entire Agreement; Modifications. This Agreement represents the
entire agreement between the Parties and supercedes all previous agreements and
understandings, including the original Employment Agreement between the Parties
and all amendments thereto, and may be amended, modified, superseded, or
cancelled, and any of the terms hereof may be waived, only by a written
instrument executed by each Party or, in the case of a waiver, by the Party
waiving compliance. The failure of any Party at any time or times to require
performance of any provisions hereof shall not affect the right at a latter time
to enforce the same. No waiver by any Party of the breach of any provision
contained in this Agreement, whether by conduct or otherwise, in any one or more
instances, shall be deemed to be or construed as a further or continuing waiver
of any such breach or of any other term of this Agreement.

          7.5 Survival. In the event of termination of this Agreement for any
reason whatsoever, the provisions of Sections 4 through 7 shall survive such
termination.

                               * * * * * * * * * *

                                       10

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this Second Amended and
Restated Employment Agreement as of the Effective Date.

                                        CORPORATION:

                                        METRETEK TECHNOLOGIES, INC.

                                        By: /s/ A. Bradley Gabbard
                                            ------------------------------------
                                            A. Bradley Gabbard,
                                            Executive Vice President

                                        Attest:

                                        /s/ Basil M. Briggs
                                        ----------------------------------------
                                        Basil M. Briggs, Chairman, Compensation
                                        Committee Of the Board of Directors

                                        OFFICER:

                                        /s/ W. Phillip Marcum
                                        ----------------------------------------
                                        W. Phillip Marcum

                                       11

<PAGE>

                                   EXHIBIT "A"
                         INCENTIVE COMPENSATION EXAMPLES

ASSUMPTIONS: CASE I

Allocated IPO common stock price per share, adjusted for 1998 reverse stock
split: $10.08

Total Common Stock Equivalents outstanding: 11,000,000 Common Stock Equivalents

Assumed sale of Corporation @ $22.00 per share: Gross transaction value of
$242,000,000

FMV: $242,000,000/11,000,000 = $22.00

BP: $10.08

Incentive Compensation Calculation:

<TABLE>
<S>                                      <C>
($22.00 - $10.08 x 11,000,000) x 10% =   $12,112,000
                                         -----------
   Total Incentive Compensation          $12,112,000
                                         ===========
</TABLE>

ASSUMPTIONS: CASE II

Sale of Subsidiary @ $55,000,000

Compensation Committee determined allocated BP to Subsidiary, based upon
cost/value of $11,000,000

Apportioned BP: $11,000,000 / 11,000,000 = $1.00 BP

FMV: $55,000,000 / 11,000,000 = $5.00

Incentive Compensation Calculation:

<TABLE>
<S>                                    <C>
($3.00 - $1.00 x 11,000,000) x 10% =   $2,200,000
($4.00 - $3.00 x 11,000,000) x 15% =   $1,650,000
($5.00 - $4.00 x 11,000,000) x 20% =   $2,200,000
                                       ----------
   Total Incentive Compensation        $6,050,000
                                       ==========
</TABLE>

                                       12

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