Document:

ADDENDUM
      TO SUBSCRIPTION AGREEMENT

     

    Reference
      is made to each of those Subscription Agreements, dated as of May __, 2007,
      between MSTI Holdings, Inc., a Delaware corporation (the “Company”)
      and
      each of the subscribers (the “Subscribers”)
      for
      Units (as defined in the Company’s
      Confidential Private Placement Memorandum (the “PPM”)
      dated
      May 7, 2007, as supplemented to date)
      (the
“Subscription
      Agreements”).
      The
      Company hereby provides the following Addendum (this “Addendum”)
      to the
      Subscription Agreements for the benefit of each Subscriber. Capitalized terms
      used herein but not otherwise defined shall have the meanings ascribed to them
      in the Subscription Agreements or the PPM.

     

    1. Additional
      Representations and Warranties.
      The
      provisions appearing under the heading “II. Representations of the Company” in
      the Subscription Agreements is deleted and replaced in its entirety with the
      following:

     

    2.1 The
      Company represents and warrants to the Subscriber that as of the date of the
      closing of the Offering (the “Closing
      Date”):

     

    (a)  Subsidiaries.
      All of
      the direct and indirect subsidiaries of the Company are set forth on
Schedule
      2.1(a).
      The
      Company owns, directly or indirectly, all of the capital stock or other equity
      interests of each Subsidiary free and clear of any Liens, and all of the issued
      and outstanding shares of capital stock of each Subsidiary are validly issued
      and are fully paid, non-assessable and free of preemptive and similar rights
      to
      subscribe for or purchase securities. If the Company has no subsidiaries, all
      other references to the Subsidiaries or any of them in the Transaction Documents
      shall be disregarded.

     

    (b)  Organization
      and Qualification.
      The
      Company and each of the Subsidiaries is an entity duly incorporated or otherwise
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its incorporation or organization (as applicable), with the
      requisite power and authority to own and use its properties and assets and
      to
      carry on its business as currently conducted. Neither the Company nor any
      Subsidiary is in violation or default of any of the provisions of its respective
      certificate or articles of incorporation, bylaws or other organizational or
      charter documents. Each of the Company and the Subsidiaries is duly qualified
      to
      conduct business and is in good standing as a foreign corporation or other
      entity in each jurisdiction in which the nature of the business conducted or
      property owned by it makes such qualification necessary, except where the
      failure to be so qualified or in good standing, as the case may be, could not
      have or reasonably be expected to result in (i) a material adverse effect on
      the
      legality, validity or enforceability of any Transaction Document, (ii) a
      material adverse effect on the results of operations, assets, business,
      prospects or condition (financial or otherwise) of the Company and the
      Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
      Company’s ability to perform in any material respect on a timely basis its
      obligations under any Transaction Document (any of (i), (ii) or (iii), a
“Material
      Adverse Effect”)
      and no
      Proceeding has been instituted in any such jurisdiction revoking, limiting
      or
      curtailing or seeking to revoke, limit or curtail such power and authority
      or
      qualification.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (c)  Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations hereunder and thereunder. The
      execution and delivery of each of the Transaction Documents by the Company
      and
      the consummation by it of the transactions contemplated hereby and thereby
      have
      been duly authorized by all necessary action on the part of the Company and
      no
      further action is required by the Company, the Board of Directors or the
      Company’s stockholders in connection therewith other than in connection with the
      Required Approvals. Each Transaction Document has been (or upon delivery will
      have been) duly executed by the Company and, when delivered in accordance with
      the terms hereof and thereof, will constitute the valid and binding obligation
      of the Company enforceable against the Company in accordance with its terms,
      except (i) as limited by general equitable principles and applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies and (iii) insofar as indemnification and contribution
      provisions may be limited by applicable law.

     

    (d)  No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the other transactions contemplated
      hereby and thereby do not and will not: (i) conflict with or violate any
      provision of the Company’s or any Subsidiary’s certificate or articles of
      incorporation, bylaws or other organizational or charter documents, or (ii)
      conflict with, or constitute a default (or an event that with notice or lapse
      of
      time or both would become a default) under, result in the creation of any Lien
      upon any of the properties or assets of the Company or any Subsidiary, or give
      to others any rights of termination, amendment, acceleration or cancellation
      (with or without notice, lapse of time or both) of, any agreement, credit
      facility, debt or other instrument (evidencing a Company or Subsidiary debt
      or
      otherwise) or other understanding to which the Company or any Subsidiary is
      a
      party or by which any property or asset of the Company or any Subsidiary is
      bound or affected, or (iii) subject to the Required Approvals, conflict with
      or
      result in a violation of any law, rule, regulation, order, judgment, injunction,
      decree or other restriction of any court or governmental authority to which
      the
      Company or a Subsidiary is subject (including federal and state securities
      laws
      and regulations), or by which any property or asset of the Company or a
      Subsidiary is bound or affected; except in the case of each of clauses (ii)
      and
      (iii), such as could not have or reasonably be expected to result in a Material
      Adverse Effect.

     

    (e)  Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any court
      or
      other federal, state, local or other governmental authority or other Person
      in
      connection with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) the filings with the Commission of a
      Current Report on Form 8-K disclosing the material terms of the transactions
      contemplated by the PPM and attaching the Transaction Documents thereto, (ii)
      the filing with the Commission of the Registration Statement, (iii) the notice
      and/or application(s) to each applicable Trading Market for the issuance and
      sale of the Common Stock included in the Units for trading thereon in the time
      and manner required thereby and (iv) the filing of Form D with the Commission
      and such filings as are required to be made under applicable state securities
      laws (collectively, the “Required
      Approvals”).

     

    
      
        
        

      

      
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    (f)  Issuance
      of the Securities.
      The
      Securities are duly authorized and, when issued and paid for in accordance
      with
      the applicable Transaction Documents, will be duly and validly issued, fully
      paid and nonassessable, free and clear of all Liens imposed by the Company
      other
      than restrictions on transfer provided for in the Transaction Documents. The
      Common Stock included in the Units, when issued in accordance with the terms
      of
      the Transaction Documents, will be validly issued, fully paid and nonassessable,
      free and clear of all Liens imposed by the Company other than restrictions
      on
      transfer provided for in the Transaction Documents. The Company has reserved
      from its duly authorized capital stock a number of shares of Common Stock for
      issuance of the Common Stock included in the Units at least equal to the
      Required Minimum on the date hereof. 

     

    (g)  Capitalization.
      The
      capitalization of the Company is as set forth on Schedule
      2.1(g),
      which
Schedule
      2.1(g)
      shall
      also include the number of shares of Common Stock owned beneficially, and of
      record, by Affiliates of the Company as of the date hereof. The Company has
      not
      issued any capital stock since its most
      recently filed periodic report under the Exchange Act,
      other
      than pursuant to (i) the Merger, (ii) any transaction described in the PPM
      or
      (iii) the exercise of employee stock options under the Company’s stock option
      plans, the issuance of shares of Common Stock to employees pursuant to the
      Company’s employee stock purchase plan and pursuant to the conversion or
      exercise of Common Stock Equivalents outstanding as of the date of the most
      recently filed periodic report under the Exchange Act. No Person has any right
      of first refusal, preemptive right, right of participation, or any similar
      right
      to participate in the transactions contemplated by the Transaction Documents.
      Except as a result of the purchase and sale of the Securities, there are no
      outstanding options, warrants, scrip rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities, rights
      or
      obligations convertible into or exercisable or exchangeable for, or giving
      any
      Person any right to subscribe for or acquire, any shares of Common Stock, or
      contracts, commitments, understandings or arrangements by which the Company
      or
      any Subsidiary is or may become bound to issue additional shares of Common
      Stock
      or Common Stock Equivalents. The issuance and sale of the Securities will not
      obligate the Company to issue shares of Common Stock or other securities to
      any
      Person (other than the Subscribers) and will not result in a right of any holder
      of Company securities to adjust the exercise, conversion, exchange or reset
      price under any of such securities. All of the outstanding shares of capital
      stock of the Company are validly issued, fully paid and nonassessable, have
      been
      issued in compliance with all federal and state securities laws, and none of
      such outstanding shares was issued in violation of any preemptive rights or
      similar rights to subscribe for or purchase securities. No further approval
      or
      authorization of any stockholder, the Board of Directors or others is required
      for the issuance and sale of the Securities. There are no stockholders
      agreements, voting agreements or other similar agreements with respect to the
      Company’s capital stock to which the Company is a party or, to the knowledge of
      the Company, between or among any of the Company’s stockholders.

     

    
      
        
        

      

      
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    (h)  SEC
      Reports; Financial Statements.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by the Company under the Securities Act and the Exchange
      Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
      preceding the date hereof (or such shorter period as the Company was required
      by
      law or regulation to file such material) (the foregoing materials, including
      the
      exhibits thereto and documents incorporated by reference therein, being
      collectively referred to herein as the “SEC
      Reports”)
      on a
      timely basis or has received a valid extension of such time of filing and has
      filed any such SEC Reports prior to the expiration of any such extension. As
      of
      their respective dates, the SEC Reports complied in all material respects with
      the requirements of the Securities Act and the Exchange Act, as applicable,
      and
      none of the SEC Reports, when filed, contained any untrue statement of a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading. The audited financial
      statements of the Microwave Satellite Technologies, Inc., a New Jersey
      corporation (the “MST
      Subsidiary”)
      and
      its direct and indirect subsidiaries for the past two fiscal years and unaudited
      financial statements for the most recent fiscal quarter are attached hereto
      as
Schedule
      2.1(h).
      Such
      financial statements comply in all material respects with applicable accounting
      requirements and the rules and regulations of the Commission with respect
      thereto as in effect at the time of filing. Such financial statements have
      been
      prepared in accordance with United States generally accepted accounting
      principles applied on a consistent basis during the periods involved
      (“GAAP”),
      except as may be otherwise specified in such financial statements or the notes
      thereto and except that unaudited financial statements may not contain all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the MST Subsidiary and its consolidated Subsidiaries
      as of
      and for the dates thereof and the results of operations and cash flows for
      the
      periods then ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments. The financial statements of the Company
      included in the SEC Reports comply in all material respects with applicable
      accounting requirements and the rules and regulations of the Commission with
      respect thereto as in effect at the time of filing. Such financial statements
      comply in all material respects with applicable accounting requirements and
      the
      rules and regulations of the Commission with respect thereto as in effect at
      the
      time of filing. Such financial statements have been prepared in accordance
      with
      GAAP, except as may be otherwise specified in such financial statements or
      the
      notes thereto and except that unaudited financial statements may not contain
      all
      footnotes required by GAAP, and fairly present in all material respects the
      financial position of the Company and its consolidated Subsidiaries as of and
      for the dates thereof and the results of operations and cash flows for the
      periods then ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments.

     

    (i)  Material
      Changes.
      Since
      the date of the latest audited financial statements included attached hereto
      as
      Schedule 2.1(h), except as specifically disclosed on Schedule
      2.1(i),
      (i)
      there has been no event, occurrence or development that has had or that could
      reasonably be expected to result in a Material Adverse Effect, (ii) the Company
      has not incurred any liabilities (contingent or otherwise) other than (A) trade
      payables and accrued expenses incurred in the ordinary course of business
      consistent with past practice and (B) liabilities not required to be reflected
      in the Company’s financial statements pursuant to GAAP or disclosed in filings
      made with the Commission, (iii) the Company has not altered its method of
      accounting, (iv) the Company has not declared or made any dividend or
      distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its capital
      stock and (v) the Company has not issued any equity securities to any officer,
      director or Affiliate, except pursuant to existing Company stock option plans.
      The Company does not have pending before the Commission any request for
      confidential treatment of information. Except for the issuance of the Securities
      contemplated by the Subscription Agreement or as set forth on Schedule
      2.1(i),
      no
      event, liability or development has occurred or exists with respect to the
      Company or its Subsidiaries or their respective business, properties, operations
      or financial condition, that would be required to be disclosed by the Company
      under applicable securities laws at the time this representation is made or
      deemed made that has not been publicly disclosed at least one Trading Day prior
      to the date that this representation is made.

     

    
      
        
        

      

      
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    (j)  Litigation.
      There
      is no action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company, threatened against or affecting
      the
      Company, any Subsidiary or any of their respective properties before or by
      any
      court, arbitrator, governmental or administrative agency or regulatory authority
      (federal, state, county, local or foreign) (collectively, an “Action”)
      which
      (i) adversely affects or challenges the legality, validity or enforceability
      of
      any of the Transaction Documents or the Securities or (ii) could, if there
      were
      an unfavorable decision, have or reasonably be expected to result in a Material
      Adverse Effect. Neither the Company nor any Subsidiary, nor any director or
      officer thereof, is or has been the subject of any Action involving a claim
      of
      violation of or liability under federal or state securities laws or a claim
      of
      breach of fiduciary duty. There has not been, and to the knowledge of the
      Company, there is not pending or contemplated, any investigation by the
      Commission involving the Company or any current or former director or officer
      of
      the Company. The Commission has not issued any stop order or other order
      suspending the effectiveness of any registration statement filed by the Company
      or any Subsidiary under the Exchange Act or the Securities Act. 

     

    (k)  Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of the Company, is imminent
      with respect to any of the employees of the Company which could reasonably
      be
      expected to result in a Material Adverse Effect. None of the Company’s or its
      Subsidiaries’ employees is a member of a union that relates to such employee’s
      relationship with the Company or such Subsidiary, and neither the Company nor
      any of its Subsidiaries is a party to a collective bargaining agreement, and
      the
      Company and its Subsidiaries believe that their relationships with their
      employees are good. No executive officer, to the knowledge of the Company,
      is,
      or is now expected to be, in violation of any material term of any employment
      contract, confidentiality, disclosure or proprietary information agreement
      or
      non-competition agreement, or any other contract or agreement or any restrictive
      covenant in favor of any third party, and the continued employment of each
      such
      executive officer does not subject the Company or any of its Subsidiaries to
      any
      liability with respect to any of the foregoing matters. The Company and its
      Subsidiaries are in compliance with all U.S. federal, state, local and foreign
      laws and regulations relating to employment and employment practices, terms
      and
      conditions of employment and wages and hours, except where the failure to be
      in
      compliance could not, individually or in the aggregate, reasonably be expected
      to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    (l)  Compliance.
      Neither
      the Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by the Company or any Subsidiary under),
      nor has the Company or any Subsidiary received notice of a claim that it is
      in
      default under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or by
      which it or any of its properties is bound (whether or not such default or
      violation has been waived), (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws applicable to its business
      and all such laws that affect the environment, except in each case as could
      not
      have or reasonably be expected to result in a Material Adverse
      Effect.

     

    (m)  Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses, except where
      the
      failure to possess such permits could not reasonably be expected to result
      in a
      Material Adverse Effect (“Material
      Permits”),
      and
      neither the Company nor any Subsidiary has received any notice of proceedings
      relating to the revocation or modification of any Material Permit.

     

    (n)  Title
      to Assets.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property owned by them and good and marketable title in all personal
      property owned by them that is material to the business of the Company and
      the
      Subsidiaries, in each case free and clear of all Liens, except for Liens as
      do
      not materially affect the value of such property and do not materially interfere
      with the use made and proposed to be made of such property by the Company and
      the Subsidiaries and Liens for the payment of federal, state or other taxes,
      the
      payment of which is neither delinquent nor subject to penalties. Any real
      property and facilities held under lease by the Company and the Subsidiaries
      are
      held by them under valid, subsisting and enforceable leases with which the
      Company and the Subsidiaries are in compliance.

     

    (o)  Patents
      and Trademarks.
      The
      Company and the Subsidiaries have, or have rights to use, all patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      trade secrets, inventions, copyrights, licenses and other intellectual property
      rights and similar rights necessary or material for use in connection with
      their
      respective businesses as described in the SEC Reports and which the failure
      to
      so have could have a Material Adverse Effect (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor any Subsidiary has received a notice (written or
      otherwise) that any of the Intellectual Property Rights used by the Company
      or
      any Subsidiary violates or infringes upon the rights of any Person. To the
      knowledge of the Company, all such Intellectual Property Rights are enforceable
      and there is no existing infringement by another Person of any of the
      Intellectual Property Rights. The Company and its Subsidiaries have taken
      reasonable security measures to protect the secrecy, confidentiality and value
      of all of their intellectual properties, except where failure to do so could
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    (p)  Insurance.
      The
      Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as are prudent
      and customary in the businesses in which the Company and the Subsidiaries are
      engaged, including, but not limited to, directors and officers insurance
      coverage at least equal to the aggregate Subscription Amount. Neither the
      Company nor any Subsidiary has any reason to believe that it will not be able
      to
      renew its existing insurance coverage as and when such coverage expires or
      to
      obtain similar coverage from similar insurers as may be necessary to continue
      its business without a significant increase in cost.

     

    (q)  Transactions
      with Affiliates and Employees.
      Except
      as set forth in the SEC Reports, none of the officers or directors of the
      Company and, to the knowledge of the Company, none of the employees of the
      Company is presently a party to any transaction with the Company or any
      Subsidiary (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of the Company, any entity in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner, in each case in excess of $60,000
      other than for (i) payment of salary or consulting fees for services rendered,
      (ii) reimbursement for expenses incurred on behalf of the Company and (iii)
      other employee benefits, including stock option agreements under any stock
      option plan of the Company.

     

    (r)  Sarbanes-Oxley;
      Internal Accounting Controls.
      The
      Company is in material compliance with all provisions of the Sarbanes-Oxley
      Act
      of 2002 which are applicable to it as of the Closing Date. The
      Company and the Subsidiaries maintain a system of internal accounting controls
      sufficient to provide reasonable assurance that (i) transactions are executed
      in
      accordance with management’s general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability, (iii)
      access to assets is permitted only in accordance with management’s general or
      specific authorization, and (iv) the recorded accountability for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences. The Company has established disclosure
      controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
      15d-15(e)) for the Company and designed such disclosure controls and procedures
      to ensure that information required to be disclosed by the Company in the
      reports it files or submits under the Exchange Act is recorded, processed,
      summarized and reported, within the time periods specified in the Commission’s
      rules and forms. The Company’s certifying officers have evaluated the
      effectiveness of the Company’s disclosure controls and procedures as of the end
      of the period covered by the Company’s most recently filed periodic report under
      the Exchange Act (such date, the “Evaluation
      Date”).
      The
      Company presented in its most recently filed periodic report under the Exchange
      Act the conclusions of the certifying officers about the effectiveness of the
      disclosure controls and procedures based on their evaluations as of the
      Evaluation Date. Since the Evaluation Date, there have been no changes in the
      Company’s internal control over financial reporting (as such term is defined in
      the Exchange Act) that has materially affected, or is reasonably likely to
      materially affect, the Company’s internal control over financial
      reporting.

     

    
      
        
        

      

      
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    (s)  Certain
      Fees.
      All
      brokerage or finder’s fees or commissions that are or will be payable by the
      Company to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by the Transaction Documents are as set forth in the PPM. The
      Subscribers shall have no obligation with respect to any fees or with respect
      to
      any claims made by or on behalf of other Persons for fees of a type contemplated
      in this Section that may be due in connection with the transactions contemplated
      by the Transaction Documents. 

     

    (t)  Private
      Placement.
      Assuming the accuracy of the Subscribers’ representations and warranties set
      forth in the Subscription Agreement, no registration under the Securities Act
      is
      required for the offer and sale of the Securities by the Company to the
      Subscribers as contemplated by the PPM. The issuance and sale of the Securities
      hereunder does not contravene the rules and regulations of the Trading
      Market.

     

    (u)  Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately after receipt of
      payment for the Securities, will not be or be an Affiliate of, an “investment
      company” within the meaning of the Investment Company Act of 1940, as amended.
      The Company shall conduct its business in a manner so that it will not become
      subject to the Investment Company Act of 1940, as amended.

     

    (v)  Registration
      Rights.
      Other
      than each of the Subscribers or as set forth in the PPM, no Person has any
      right
      to cause the Company to effect the registration under the Securities Act of
      any
      securities of the Company.

     

    (w)  Listing
      and Maintenance Requirements.
      The
      Company has not, in the 12 months preceding the date hereof, received notice
      from any Trading Market on which the Common Stock is or has been listed or
      quoted to the effect that the Company is not in compliance with the listing
      or
      maintenance requirements of such Trading Market. The Company is, and has no
      reason to believe that it will not in the foreseeable future continue to be,
      in
      compliance with all such listing and maintenance requirements.

     

    (x)  Application
      of Takeover Protections.
      The
      Company and the Board of Directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s certificate of
      incorporation (or similar charter documents) or the laws of its state of
      incorporation that is or could become applicable to the Subscribers as a result
      of the Subscribers and the Company fulfilling their obligations or exercising
      their rights under the Transaction Documents, including without limitation
      as a
      result of the Company’s issuance of the Securities and the Subscribers’
ownership of the Securities.

     

    
      
        
        

      

      
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    (y)  Disclosure.
      Except
      with respect to the material terms and conditions of the transactions
      contemplated by the Transaction Documents, the Company confirms that neither
      it
      nor any other Person acting on its behalf has provided any of the Subscribers
      or
      their agents or counsel with any information that it believes constitutes or
      might constitute material, nonpublic information. The Company understands and
      confirms that the Subscribers will rely on the foregoing representation in
      effecting transactions in securities of the Company. Attached hereto as
Schedule
      2.1(y)
      is a
      copy of a substantially final Current Report on Form 8-K (the “Merger
      8-K”)
      that
      the Company will file with the Commission in connection with the Merger on
      or
      prior to the 2nd
      Trading
      Day immediately following the date hereof (which Current Report contains, among
      other information, risk factors concerning the Company and financial statements
      required to be filed therewith). All disclosure furnished by or on behalf of
      the
      Company to the Subscribers regarding the Company, its business and the
      transactions contemplated hereby, including the Disclosure Schedules to this
      Addendum, is true and correct and does not contain any untrue statement of
      a
      material fact or omit to state any material fact necessary in order to make
      the
      statements made therein, in light of the circumstances under which they were
      made, not misleading. The press releases disseminated by the Company during
      the
      twelve months preceding the date of this Agreement taken as a whole do not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made and when
      made,
      not misleading. The Company acknowledges and agrees that no Subscriber makes
      or
      has made any representations or warranties with respect to the transactions
      contemplated by the PPM other than those specifically set forth in the
      Subscription Agreement.

     

    (z)  No
      Integrated Offering.
      Assuming
      the accuracy of the Purchasers’ representations and warranties set forth in
      Section 3.2, neither the Company, nor any of its Affiliates, nor any Person
      acting on its or their behalf has, directly or indirectly, made any offers
      or
      sales of any security or solicited any offers to buy any security, under
      circumstances that would cause this offering of the Securities to be integrated
      with prior offerings by the Company for purposes of (i) the Securities Act
      which
      would require the registration of any such securities under the Securities
      Act,
      or (ii) any applicable shareholder approval provisions of any Trading Market
      on
      which any of the securities of the Company are listed or designated. 

     

    (aa)  Solvency.
      Based
      on the consolidated financial condition of the Company as of the Closing Date
      after giving effect to the receipt by the Company of the proceeds from the
      sale
      of the Securities hereunder, (i) the fair saleable value of the Company’s assets
      exceeds the amount that will be required to be paid on or in respect of the
      Company’s existing debts and other liabilities (including known contingent
      liabilities) as they mature, (ii) the Company’s assets do not constitute
      unreasonably small capital to carry on its business as now conducted and as
      proposed to be conducted including its capital needs taking into account the
      particular capital requirements of the business conducted by the Company, and
      projected capital requirements and capital availability thereof, and (iii)
      the
      current cash flow of the Company, together with the proceeds the Company would
      receive, were it to liquidate all of its assets, after taking into account
      all
      anticipated uses of the cash, would be sufficient to pay all amounts on or
      in
      respect of its liabilities when such amounts are required to be paid. The
      Company does not intend to incur debts beyond its ability to pay such debts
      as
      they mature (taking into account the timing and amounts of cash to be payable
      on
      or in respect of its debt). The Company has no knowledge of any facts or
      circumstances which lead it to believe that it will file for reorganization
      or
      liquidation under the bankruptcy or reorganization laws of any jurisdiction
      within one year from the Closing Date. Schedule
      2.1(aa)
      sets
      forth as of the date hereof all outstanding secured and unsecured Indebtedness
      of the Company or any Subsidiary, or for which the Company or any Subsidiary
      has
      commitments. For the purposes of this Addendum, “Indebtedness”
means
      (a) any liabilities for borrowed money or amounts owed in excess of $50,000
      (other than trade accounts payable incurred in the ordinary course of business),
      (b) all guaranties, endorsements and other contingent obligations in respect
      of
      indebtedness of others, whether or not the same are or should be reflected
      in
      the Company’s balance sheet (or the notes thereto), except guaranties by
      endorsement of negotiable instruments for deposit or collection or similar
      transactions in the ordinary course of business; and (c) the present value
      of
      any lease payments
      in excess of $50,000 due under leases required to be capitalized in accordance
      with GAAP. Neither
      the Company nor any Subsidiary is in default with respect to any
      Indebtedness.

     

    
      
        
        

      

      
        -
          9
          -

        
          

        

      

      
        
        

      

    

     

    (bb)  Tax
      Status.
      Except
      for matters that would not, individually or in the aggregate, have or reasonably
      be expected to result in a Material Adverse Effect, the Company and each
      Subsidiary has filed all necessary federal, state and foreign income and
      franchise tax returns and has paid or accrued all taxes shown as due thereon,
      and the Company has no knowledge of a tax deficiency which has been asserted
      or
      threatened against the Company or any Subsidiary.

     

    (cc)  No
      General Solicitation.
      Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Securities by any form of general solicitation or general
      advertising. The Company has offered the Securities for sale only to the
      Subscribers and certain other “accredited investors” within the meaning of Rule
      501 under the Securities Act.

     

    (dd)  Foreign
      Corrupt Practices.
      Neither
      the Company, nor to the knowledge of the Company, any agent or other person
      acting on behalf of the Company, has (i) directly or indirectly, used any funds
      for unlawful contributions, gifts, entertainment or other unlawful expenses
      related to foreign or domestic political activity, (ii) made any unlawful
      payment to foreign or domestic government officials or employees or to any
      foreign or domestic political parties or campaigns from corporate funds, (iii)
      failed to disclose fully any contribution made by the Company (or made by any
      person acting on its behalf of which the Company is aware) which is in violation
      of law, or (iv) violated in any material respect any provision of the Foreign
      Corrupt Practices Act of 1977, as amended.

     

    
      
        
        

      

      
        -
          10
          -

        
          

        

      

      
        
        

      

    

     

    (ee)  Accountants.
      The
      Company’s accounting firm is set forth on Schedule
      2.1(ee)
      of the
      Disclosure Schedule. To the knowledge and belief of the Company, such accounting
      firm (i) is a registered public accounting firm as required by the Exchange
      Act
      and (ii) shall express its opinion with respect to the financial statements
      to
      be included in the Company’s Annual Report on Form 10-KSB for the year ending
      December 31, 2006.

     

    (ff)  Seniority.
      As of
      the Closing Date, no Indebtedness or other claim against the Company is senior
      to the Debentures in right of payment, whether with respect to interest or
      upon
      liquidation or dissolution, or otherwise, other than indebtedness secured by
      purchase money security interests (which is senior only as to underlying assets
      covered thereby) and capital lease obligations (which is senior only as to
      the
      property covered thereby).

     

    (gg)  No
      Disagreements with Accountants and Lawyers.
      There
      are no disagreements of any kind presently existing, or reasonably anticipated
      by the Company to arise, between the Company and the accountants and lawyers
      formerly or presently employed by the Company and the Company is current with
      respect to any fees owed to its accountants and lawyers which could affect
      the
      Company’s ability to perform any of its obligations under any of the Transaction
      Documents.

     

    (hh)  Acknowledgment
      Regarding Subscribers’ Purchase of Securities.
      The
      Company acknowledges and agrees that each of the Subscribers is acting solely
      in
      the capacity of an arm’s length purchaser with respect to the Transaction
      Documents and the transactions contemplated thereby. The Company further
      acknowledges that no Purchaser is acting as a financial advisor or fiduciary
      of
      the Company (or in any similar capacity) with respect to the Transaction
      Documents and the transactions contemplated thereby and any advice given by
      any
      Purchaser or any of their respective representatives or agents in connection
      with the Transaction Documents and the transactions contemplated thereby is
      merely incidental to the Subscribers’ purchase of the Securities. The Company
      further represents to each Purchaser that the Company’s decision to enter into
      this Agreement and the other Transaction Documents has been based solely on
      the
      independent evaluation of the transactions contemplated hereby by the Company
      and its representatives.

     

    (ii)  Acknowledgment
      Regarding Subscribers’ Trading Activity.
      Notwithstanding anything in the PPM to the contrary, it is understood and
      acknowledged by the Company that (i) none of the Subscribers has been asked
      to
      agree by the Company, nor has any Purchaser agreed, to desist from purchasing
      or
      selling, long and/or short, securities of the Company, or “derivative”
securities based on securities issued by the Company or to hold the Securities
      for any specified term, (ii) past or future open market or other transactions
      by
      any Purchaser, specifically including, without limitation, Short Sales or
“derivative” transactions, before or after the closing of this or future private
      placement transactions, may negatively impact the market price of the Company’s
      publicly-traded securities, (iii) any Purchaser, and counter-parties in
“derivative” transactions to which any such Purchaser is a party, directly or
      indirectly, may presently have a “short” position in the Common Stock, and (iv)
      each Purchaser shall not be deemed to have any affiliation with or control
      over
      any arm’s length counter-party in any “derivative” transaction. The
      Company further understands and acknowledges that (a) one or more Investors
      may
      engage in hedging activities at various times during the period that the
      Securities are outstanding, including, without limitation, during the periods
      that the value of the Common Stock included in the Units are being determined
      and (b) such hedging activities (if any) could reduce the value of the existing
      stockholders' equity interests in the Company at and after the time that the
      hedging activities are being conducted.  The Company acknowledges that such
      aforementioned hedging activities do not constitute a breach of any of the
      Transaction Documents.

     

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

     

    (jj)  Regulation
      M Compliance. 
      The Company has not, and to its knowledge no one acting on its behalf has,
      (i)
      taken, directly or indirectly, any action designed to cause or to result in
      the
      stabilization or manipulation of the price of any security of the Company to
      facilitate the sale or resale of any of the Securities, (ii) sold, bid for,
      purchased, or paid any compensation for soliciting purchases of, any of the
      securities of the Company or (iii) paid or agreed to pay to any Person any
      compensation for soliciting another to purchase any other securities of the
      Company, other than, in the case of clauses (ii) and (iii), compensation paid
      to
      the Company’s placement agent in connection with the placement of the
      Securities.

     

    2.2 For
      purposes of this Article II, references to the Subsidiaries shall include the
      MST Subsidiary and its business and its direct and indirect subsidiaries, and
      references to all Schedules herein shall mean any and all information and
      disclosures included on the same or equivalent schedule to the Securities
      Purchase Agreement for the Debentures which disclosures are hereby incorporated
      by reference and are not repeated herein; further any and all amendments,
      modifications, waivers, consents, or agreements approved by the Debenture
      purchasers in accordance with the Debentures, with respect to such
      representations and warranties, will be binding upon all beneficiaries of the
      representations and warranties provided in this paragraph without further action
      or consent by any Unit purchasers):

     

    2. Anti
      Dilution Provisions.
      The
      provisions appearing under the heading “III. Covenants By the Company” in the
      Subscription Agreement is deleted and replaced in its entirety with the
      following:

     

    3.1 The
      Company agrees that the Subscriber shall have certain registration rights with
      respect to the shares of Common Stock underlying the Units issued to Subscribers
      pursuant to the terms of the Registration Rights Agreement attached as Exhibit
      C
      to the PPM.

     

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

     

    3.2 For
      a
      period of eighteen (18) months following the Closing Date (the “Adjustment
      Period”),
      in
      the event that the Company sells
      or
      grants any option to purchase or sells or grants any right to reprice, or
      otherwise disposes of or issues (or announces any sale, grant or any option
      to
      purchase or other disposition), any Common Stock or Common Stock Equivalents
      entitling any Person to acquire shares of Common Stock at an effective price
      per
      share that is lower than $0.55
      per
      share (such
      lower price, the “Base Price” and such issuances, collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share that is lower than $0.55 per share, such issuance shall be deemed
      to
      have occurred for less than the $0.55 per share on such date of the Dilutive
      Issuance), then the Company shall promptly issue additional shares of Common
      Stock to each Subscriber in the Offering in an amount sufficient that the
      subscription price paid by each Subscriber, when divided by the total number
      of
      shares issued (shares included in the purchased Units plus the additional shares
      issued in the Dilutive Issuance), will result in an actual price paid by each
      Subscriber per share of Common Stock equal to the Base Price. Such adjustment
      shall be made whenever such Common Stock or Common Stock Equivalents are issued
      within the Adjustment Period. Notwithstanding the foregoing, no adjustment
      will
      be made under this Section 3.2 in respect of an Exempt Issuance. The Company
      shall notify the purchaser in writing, no later than 1 Business Day following
      the issuance of any Common Stock or Common Stock Equivalents subject to this
      Section, indicating therein the applicable issuance price, or applicable reset
      price, exchange price, conversion price and other pricing terms (such notice,
      the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3.2, upon the occurrence of any
      Dilutive Issuance, the purchaser is entitled to receive a number of shares
      based
      upon the Base Price on or after the date of such Dilutive Issuance, regardless
      of whether the purchaser accurately refers to the Base Price in any notice.
      Notwithstanding anything herein or in any related document to the contrary,
      the
      foregoing does not convey to the purchaser any right to participation in any
      future financings or offerings now or in the future contemplated or undertaken
      by the Company.

     

    “Common
      Stock Equivalents”
means
      any securities of the Company or the Subsidiaries which would entitle the holder
      thereof to acquire at any time Common Stock, including, without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instrument that is
      at
      any time convertible into or exercisable or exchangeable for, or otherwise
      entitles the holder thereof to receive, Common Stock.

     

    “Exempt
      Issuance”
means:
      (A) any issuance resulting from the availability or effectiveness of any
      anti-dilution or price protection rights under the Debenture or related to
      the
      Debenture, such as any warrants or purchase agreements); and (B) the issuance
      of: (a) shares of Common Stock or options to employees, officers, directors,
      or
      consultants of the Company pursuant to any stock or option plan duly adopted
      for
      such purpose by a majority of the non-employee members of the Board of Directors
      of the Company or a majority of the members of a committee of non-employee
      directors established (provided, however, any such issuances to consultants
      shall not exceed 750,000 shares of Common Stock and Common Stock Equivalents,
      in
      the aggregate, in any 12 month period), (b) securities upon the exercise or
      exchange of or conversion of any Securities issued hereunder and/or other
      securities exercisable or exchangeable for or convertible into shares of Common
      Stock issued and outstanding on the date of this Agreement,
      provided that such securities have not been amended since the date of this
      Agreement to increase the number of such securities or to decrease the exercise,
      exchange or conversion price of such securities; and (c) securities issued
      pursuant to acquisitions or strategic transactions approved by a majority of
      the
      disinterested directors of the Company, provided that any such issuance shall
      only be to a Person which is either an owner
      of,
      or an entity that is, itself or through its subsidiaries, an operating company
      in a business synergistic with the business of the Company and in which the
      Company receives benefits in addition to the investment of funds, but shall
      not
      include a transaction in which the Company is issuing securities primarily
      for
      the purpose of raising capital or to an entity whose primary business is
      investing in securities.

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

     

    3. Legal
      Opinion.
      The
      Company shall deliver or cause to be delivered to each purchaser of Units a
      legal opinion of Haynes and Boone, LLP, counsel to the Company, addressed to
      such purchaser, dated as of the date of closing on the purchase of Units, in
      standard form, covering such matters as are contained in the opinion to be
      delivered to the Debenture purchasers, and subject to the same caveats and
      limitations as set forth in such opinion.

     

    4. Definitions.
      In
      addition to the terms defined elsewhere in this Addendum, the following terms
      have the meanings set forth in this Section 4:

     

    (a) “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 144 under the Securities Act. With
      respect to a Subscriber, any investment fund or managed account that is managed
      on a discretionary basis by the same investment manager as such Subscriber
      will
      be deemed to be an Affiliate of such Subscriber.

     

    (b) “Commission”
means
      the Securities and Exchange Commission.

     

    (c) “Common
      Stock”
means
      the common stock of the Company, par value $.001 per share, and any other class
      of securities into which such securities may hereafter be reclassified or
      changed into.

     

    (d) “Common
      Stock Equivalents”
means
      any securities of the Company or the Subsidiaries which would entitle the holder
      thereof to acquire at any time Common Stock, including, without limitation,
      any
      debt, preferred stock, rights, options, warrants or other instrument that is
      at
      any time convertible into or exercisable or exchangeable for, or otherwise
      entitles the holder thereof to receive, Common Stock.

     

    (e) “Debentures”
means,
      the 8% Secured Convertible Debentures due April 30, 2010, issued by the Company
      to the purchasers pursuant to that certain Securities Purchase Agreement, dated
      as of May __, 2007, among the Company and each purchaser identified on the
      signature pages thereto.

     

    (f) “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

     

    (g) “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction. 

     

    (h) “Merger”
means
      the closing of the acquisition of 100% of the issued and outstanding capital
      stock of the MST Subsidiary by the Company pursuant to that certain Agreement
      of
      Merger and Plan of Reorganization among the Company (f/k/a Fitness Xpress
      Software, Inc.), Microwave Acquisition Corp. and the MSTI Subsidiary, of even
      date herewith. 

     

    (i) “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

    (j) “Proceeding”
means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

     

    (k) “Registration
      Rights Agreement”
means
      the Registration Rights Agreement, dated the date hereof, among the Company
      and
      the Subscribers.

     

    (l) “Registration
      Statement”
means
      a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale of the Common Stock included in the
      Units by each Subscriber as provided for in the Registration Rights
      Agreement.

     

    (m) “Rule
      144”
means
      Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

     

    (n) “Securities”
means
      the Common Stock, the Warrants and the Common Stock included in the
      Units.

     

    (o) “Securities
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated hereunder.

     

    (p) “Short
      Sales”
means
      all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange
      Act (but shall not be deemed to include the location and/or reservation of
      borrowable shares of Common Stock). 

     

    (q) “Subscription
      Amount”
means,
      as to each Subscriber, the aggregate amount to be paid for Common Stock and
      Warrants purchased under such Subscriber’s Subscription Agreement in United
      States dollars and in immediately available funds.

     

    (r) “Subsidiary”
means
      any subsidiary of the Company as set forth on Schedule 2.1(a).

     

    (s) “Trading
      Day”
means
      a
      day on which the Common Stock is traded on a Trading Market.

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

     

    (t) “Trading
      Market”
means
      the following markets or exchanges on which the Common Stock is listed or quoted
      for trading: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq
      Global Market, the Nasdaq Global Select Market, the New York Stock Exchange
      or
      the OTC Bulletin Board.

     

    (u) “Transaction
      Documents”
means
      the Subscription Agreements, the Warrants, the Registration Rights Agreement,
      all exhibits and schedules hereto and thereto and any other documents or
      agreements executed in connection with the transactions contemplated
      thereunder.

     

    (v) “Warrants”
means
      collectively the Common Stock purchase warrants delivered to the Subscribers
      in
      accordance with the Subscription Agreements and the PPM.

     

    IN
      WITNESS WHEREOF, the Company has executed this Addendum as of the
      ___th
      day of
      May 2007.

     

    
      	 	 	 
	 	
              MSTI
                Holdings, Inc.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:
                Frank Matarazzo

              
                Title:
                  Chief Executive Officer

              

            

    

     

    
      
        
        

      

      
        -
          16
          -EXHIBIT
      C

     

    MICROWAVE
      SATELLITE TECHNOLOGIES, INC.

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    _______
      __, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              1.
                Registration Rights

            	
              C-2

            
	
              1.1
                Definitions

            	
              C-2

            
	
              1.2
                Company Registration

            	
              C-3

            
	
              1.3
                Obligations of the Company

            	
              C-4

            
	
              1.4
                Furnish Information

            	
              C-5

            
	
              1.5
                Delay of Registration

            	
              C-5

            
	
              1.6
                Indemnification

            	
              C-6

            
	
              1.7
                Reports Under Securities Exchange Act

            	
              C-7

            
	
              1.8
                Transfer or Assignment of Registration Rights

            	
              C-8

            
	
              1.9
                “Market Stand-Off” Agreement

            	
              C-8

            
	
              2.
                Covenants of the Company to the Investors

            	
              C-9

            
	
              2.1
                Information Rights

            	
              C-9

            
	
              2.2
                Confidentiality

            	
              C-9

            
	
              3.
                Legend

            	
              C-9

            
	
              4.
                Miscellaneous

            	
              C-10

            
	
              4.1
                Governing Law

            	
              C-10

            
	
              4.2
                Waivers and Amendments

            	
              C-10

            
	
              4.3
                Successors and Assigns

            	
              C-11

            
	
              4.4
                Entire Agreement

            	
              C-11

            
	
              4.5
                Notices

            	
              C-11

            
	
              4.6
                Interpretation

            	
              C-11

            
	
              4.7
                Severability

            	
              C-11

            
	
              4.8
                Counterparts

            	
              C-11

            
	
              4.9
                Telecopy Execution and Delivery

            	
              C-12

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    THIS
      REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
      is
      made as of _______ __, 2007, among Microwave Satellite Technologies, Inc.,
      a
      Delaware corporation (the “Company”),
      and
      the individuals and entities listed on Schedule
      A
      hereto
      (each, an “Investor”
and
      collectively, the “Investors”).

     

    RECITALS

     

    WHEREAS,
      the Company and the Investors are parties to Subscription Agreements (the
“Subscription
      Agreements”)
      pursuant to a Private Placement Memorandum dated March 28, 2007 (the
“PPM”);

     

    WHEREAS,
      the Investors’ obligations under the Subscription Agreements are conditioned
      upon certain registration rights under the Securities Act of 1933, as amended
      (the “Securities
      Act”),
      as
      described in the Subscription Agreements; and

     

    WHEREAS,
      the Investors and the Company desire to provide for the rights of registration
      under the Securities Act as are provided herein upon the execution and delivery
      of this Agreement by such Investors and the Company.

     

    NOW,
      THEREFORE, in consideration of the promises, covenants and conditions set forth
      herein, the parties hereto hereby agree as follows:

     

    1.  Registration
      Rights.

     

    1.1  Definitions.
      As used
      in this Agreement, the following terms shall have the meanings set forth
      below:

     

    (a)  “Commission”
means
      the United States Securities and Exchange Commission.

     

    (b)  “Common
      Stock”
means
      the Company’s common stock, par value $0.001 per share.

     

    (c)  “Effectiveness
      Date”
means
      the 90th
      day
      following the initial filing date of the registration statement
      hereunder.

     

    (d)  “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    (e)  “Fair
      Market Value”
means
      the average of the high and low prices of publicly traded shares of Common
      Stock, rounded to the nearest cent, on the principal national securities
      exchange on which shares of Common Stock are listed (if the shares of Common
      Stock are so listed), or on The NASDAQ Capital Market (if the shares of Common
      Stock are regularly quoted on the Nasdaq Stock Market), or, if not so listed
      or
      regularly quoted, the mean between the closing bid and asked prices of publicly
      traded shares of Common Stock in the over-the-counter market, or, if such bid
      and asked prices shall not be available, as reported by any nationally
      recognized quotation service selected by the Company, or as determined by the
      Board of Directors of the Company in a manner consistent with the provisions
      of
      the Internal Revenue Code, as amended.

     

    
      
        
        

      

      
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    (f)  “Filing
      Date”
means,
      with respect to the registration statement required to be filed hereunder,
      a
      date no later than 90th
      days
      following the final Closing Date as defined in the PPM.

     

    (g)  “Investor”
means
      any person owning Registrable Securities.

     

    (h)  The
      terms
“register,”
      “registered”
and
      “registration”
refer
      to a registration effected by preparing and filing a registration statement
      or
      similar document in compliance with the Securities Act, and the declaration
      or
      ordering of effectiveness of such registration statement or
      document.

     

    (i)  “Registrable
      Securities”
means
      any of the Shares or any securities issued or issuable as (or any securities
      issued or issuable upon the conversion or exercise of any warrant, right or
      other security that is issued as) a dividend or other distribution with respect
      to, or in exchange for, or in replacement of, the Shares; provided,
      however,
      that
      Registrable Securities shall not include any securities of the Company that
      have
      previously been registered or which have been sold to the public either pursuant
      to a registration statement or Rule 144, or which have been sold in a private
      transaction in which the transferor’s rights under this Section 1 are not
      assigned, or which may be sold immediately without registration under the
      Securities Act and without volume restrictions pursuant to Rule
      144(k).

     

    (j)  “Rule
      144”
means
      Rule 144 as promulgated by the Commission under the Securities Act, as such
      Rule
      may be amended from time to time, or any similar successor rule that may be
      promulgated by the Commission.

     

    (k)  “Shares”
means
      the shares of the Common Stock issued pursuant to the Subscription Agreements
      and issuable upon exercise of the Warrants.

     

    (l)  “Warrants”
means
      the warrants to purchase Common Stock issued pursuant to the Subscription
      Agreements.

     

    1.2  Company
      Registration.

     

    (a)  On
      or
      prior to the Filing Date the Company shall prepare and file with the Commission
      a registration statement covering the Registrable Securities for an offering
      to
      be made on a continuous basis pursuant to Rule 415. The registration statement
      shall be on Form SB-2 or Form S-3 (except if the Company is not then eligible
      to
      register for resale the Registrable Securities on Form SB-2 or Form S-3, in
      which case such registration shall be on another appropriate form in accordance
      herewith). The Company shall cause the registration statement to become
      effective and remain effective as provided herein. The Company shall use its
      best efforts to cause the registration statement to be declared effective under
      the Securities Act as promptly as possible after the filing thereof, but in
      any
      event no later than the Effectiveness Date. The Company shall use its best
      efforts to keep the registration statement continuously effective under the
      Securities Act until the date which is the earliest to occur of: (i) the date
      that is 18 months after the date hereof or (ii) the date of which all
      Registrable Securities have been sold (the “Effectiveness
      Period”).

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

     

    (b)  If:
      (i)
      the registration statement is not filed on or prior to the Filing Date; or
      (ii)
      the Company fails to use its best efforts to cause the registration statement
      to
      be declared effective by the Effectiveness Date (any such failure or breach
      being referred to as an “Event,”
and
      the date on which such Event occurs being referred to as the “Event
      Date”),
      then,
      until the applicable Event is cured, the Company shall pay to each Investor,
      in
      cash or in Common Stock at Fair Market Value at the Company’s option, as
      liquidated damages and not as a penalty, an amount equal to 1.0% of the
      aggregate purchase price paid by such Investor pursuant to the Subscription
      Agreement executed by such Investor for each thirty (30) day period (prorated
      for partial periods), up to a maximum of 6.0%, during which such Event continues
      uncured. While such Event continues, such liquidated damages shall be paid
      not
      less often than every thirty (30) days. Any unpaid liquidated damages as of
      the
      date when an Event has been cured by the Company shall be paid within three
      (3)
      business days following the date on which such Event has been cured by the
      Company. Notwithstanding anything herein to the contrary, to the extent that
      the
      registration of any or all of the Registrable Securities by the Company on
      a
      registration statement is prohibited (the “Non-Registered
      Shares”)
      as a
      result of rules, regulations, positions or releases issued or actions taken
      by
      the SEC pursuant to its authority with respect to Rule 415 and the Company
      has
      registered at such time the maximum number of Registrable Securities permissible
      upon consultation with the SEC, then the liquidated damages described in this
      Section 1.2(b) shall not be applicable to such Non-Registered
      Shares.

     

    (c)  The
      Company shall bear and pay all expenses incurred in connection with any
      registration, filing or qualification of Registrable Securities with respect
      to
      the registrations pursuant to this Section 1.2 for each Investor, including
      (without limitation) all registration, filing and qualification fees, printer’s
      fees, accounting fees and fees and disbursements of counsel for the Company,
      but
      excluding underwriting discounts and commissions relating to Registrable
      Securities and fees and disbursements of counsel for the Investors.

     

    1.3  Obligations
      of the Company.
      Whenever required under this Section 1 to effect the registration of any
      Registrable Securities, the Company shall, as expeditiously as reasonably
      possible:

     

    (a)  Prepare
      and file with the Commission a registration statement with respect to such
      Registrable Securities and use its reasonable best efforts to cause such
      registration statement to become effective and, upon the request of the
      Investors of at least a majority of the Registrable Securities registered
      thereunder, keep such registration statement effective during the Effectiveness
      Period;

     

    (b)  Prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection with such
      registration statement as may be necessary to comply with the provisions of
      the
      Securities Act with respect to the disposition of all securities covered by
      such
      registration statement;

     

    (c)  Furnish
      to the Investors such numbers of copies of a prospectus, including a preliminary
      prospectus, in conformity with the requirements of the Securities Act, and
      such
      other documents as they may reasonably request in order to facilitate the
      disposition of Registrable Securities owned by them (provided that the Company
      would not be required to print such prospectuses if readily available to
      Investors from any electronic service, such as on the EDGAR filing database
      maintained at www.sec.gov);

     

    
      
        
        

      

      
        C-4

        
          

        

      

      
        
        

      

    

     

    (d)  Use
      its
      reasonable best efforts to register and qualify the securities covered by such
      registration statement under such other securities’ or blue sky laws of such
      jurisdictions as shall be reasonably requested by the Investors; provided that
      the Company shall not be required in connection therewith or as a condition
      thereto to qualify to do business or to file a general consent to service of
      process in any such states or jurisdictions;

     

    (e)  In
      the
      event of any underwritten public offering, enter into and perform its
      obligations under an underwriting agreement, in usual and customary form, with
      the managing underwriter(s) of such offering (each Investor participating in
      such underwriting shall also enter into and perform its obligations under such
      an agreement);

     

    (f)  Notify
      each Investor of Registrable Securities covered by such registration statement,
      at any time when a prospectus relating thereto is required to be delivered
      under
      the Securities Act, of the happening of any event as a result of which the
      prospectus included in such registration statement, as then in effect, includes
      an untrue statement of a material fact or omits to state a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading in the light of the circumstances then existing;

     

    (g)  Cause
      all
      such Registrable Securities registered pursuant hereto to be listed on each
      securities exchange or nationally recognized quotation system on which similar
      securities issued by the Company are then listed; and

     

    (h)  Provide
      a
      transfer agent and registrar for all Registrable Securities registered pursuant
      hereunder and a CUSIP number for all such Registrable Securities, in each case
      not later than the effective date of such registration.

     

    1.4  Furnish
      Information.
      It
      shall be a condition precedent to the Company’s obligations to take any action
      pursuant to this Section 1 with respect to the Registrable Securities of any
      selling Investor that such Investor shall furnish to the Company such
      information regarding such Investor, the Registrable Securities held by such
      Investor, and the intended method of disposition of such securities as shall
      be
      required by the Company or the managing underwriters, if any, to effect the
      registration of such Investor’s Registrable Securities.

     

    1.5  Delay
      of Registration.
      No
      Investor shall have any right to obtain or seek an injunction restraining or
      otherwise delaying any such registration as the result of any controversy that
      might arise with respect to the interpretation or implementation of this Section
      1.

     

    
      
        
        

      

      
        C-5

        
          

        

      

      
        
        

      

    

     

    1.6  Indemnification.

     

    (a)  To
      the
      extent permitted by law, the Company will indemnify and hold harmless each
      Investor, any underwriter (as defined in the Securities Act) for such Investor
      and each person, if any, who controls such Investor or underwriter within the
      meaning of the Securities Act or the Exchange Act, against any losses, claims,
      damages or liabilities (joint or several) to which any of the foregoing persons
      may become subject under the Securities Act, the Exchange Act or other federal
      or state securities law, insofar as such losses, claims, damages or liabilities
      (or actions in respect thereof) arise out of or are based upon any of the
      following statements, omissions or violations (collectively, a “Violation”):
      (i)
      any untrue statement or alleged untrue statement of a material fact contained
      in
      a registration statement, including any preliminary prospectus or final
      prospectus contained therein or any amendments or supplements thereto
      (collectively, the “Filings”),
      (ii)
      the omission or alleged omission to state in the Filings a material fact
      required to be stated therein, or necessary to make the statements therein
      not
      misleading, or (iii) any violation or alleged violation by the Company of the
      Securities Act, the Exchange Act, any state securities law or any rule or
      regulation promulgated under the Securities Act, the Exchange Act or any state
      securities law; and the Company will pay any legal or other expenses reasonably
      incurred by any person to be indemnified pursuant to this Section 1.6(a) in
      connection with investigating or defending any such loss, claim, damage,
      liability or action; provided,
      however,
      that
      the indemnity agreement contained in this Section 1.6(a) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of the Company (which consent
      shall not be unreasonably withheld), nor shall the Company be liable in any
      such
      case for any such loss, claim, damage, liability or action to the extent that
      it
      arises out of or is based upon a Violation that occurs in reliance upon and
      in
      conformity with written information furnished expressly for use in connection
      with such registration by any such Investor, underwriter or controlling
      person.

     

    (b)  To
      the
      extent permitted by law, each Investor will indemnify and hold harmless the
      Company, each of its directors, each of its officers who has signed the
      registration statement, each person, if any, who controls the Company within
      the
      meaning of the Securities Act or the Exchange Act, any underwriter, any other
      Investor selling securities in such registration statement and any controlling
      person of any such underwriter or other Investor, against any losses, claims,
      damages or liabilities (joint or several) to which any of the foregoing persons
      may become subject under the Securities Act, the Exchange Act or other federal
      or state securities law, insofar as such losses, claims, damages or liabilities
      (or actions in respect thereto) 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 by such
      Investor expressly for use in connection with such registration; and each such
      Investor will pay any legal or other expenses reasonably incurred by any person
      to be indemnified pursuant to this Section 1.6(b) in connection with
      investigating or defending any such loss, claim, damage, liability or action;
      provided,
      however,
      that
      the indemnity agreement contained in this Section 1.6(b) shall not apply to
      amounts paid in settlement of any such loss, claim, damage, liability or action
      if such settlement is effected without the consent of the Investor (which
      consent shall not be unreasonably withheld); provided,
      however,
      in no
      event shall any indemnity under this subsection 1.6(b) exceed the gross proceeds
      from the offering received by such Investor.

     

    (c)  Promptly
      after receipt by an indemnified party under this Section 1.6 of notice of the
      commencement of any action (including any governmental action), such indemnified
      party will, if a claim in respect thereof is to be made against any indemnifying
      party under this Section 1.6, 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 the defense
      thereof with counsel mutually satisfactory to the parties; provided,
      however,
      that an
      indemnified party (together with all other indemnified parties that may be
      represented without conflict by one counsel) shall have the right to retain
      one
      separate counsel, with the fees and expenses to be paid by the indemnifying
      party, if representation of such indemnified party by the counsel retained
      by
      the indemnifying party would be inappropriate due to actual or potential
      differing interests between such indemnified party and any other party
      represented by such counsel in such proceeding. The failure to deliver written
      notice to the indemnifying party within a reasonable time of the commencement
      of
      any such action, if materially prejudicial to its ability to defend such action,
      shall relieve such indemnifying party of any liability to the indemnified party
      under this Section 1.6, but the omission so to deliver written notice to the
      indemnifying party will not relieve it of any liability that it may have to
      any
      indemnified party otherwise than under this Section 1.6.

     

    
      
        
        

      

      
        C-6

        
          

        

      

      
        
        

      

    

     

    (d)  If
      the
      indemnification provided for in Sections 1.6(a) and (b) is held by a court
      of
      competent jurisdiction to be unavailable to an indemnified party with respect
      to
      any loss, claim, damage or expense referred to herein, then the indemnifying
      party, in lieu of indemnifying such indemnified party hereunder, shall
      contribute to the amount paid or payable by such indemnified party as a result
      of such loss, claim, damage or expense in such proportion as is appropriate
      to
      reflect the relative fault of the indemnifying party on the one hand and of
      the
      indemnified party on the other in connection with the statements or omissions
      or
      alleged statements or omissions that resulted in such loss, liability, claim
      or
      expense as well as any other relevant equitable considerations. The relative
      fault of the indemnifying party and of the indemnified party shall be determined
      by reference to, among other things, whether the untrue or alleged untrue
      statement of a material fact relates to information supplied by the indemnifying
      party or by the indemnified party and the parties’ relative intent, knowledge,
      access to information and opportunity to correct or prevent such statement
      or
      omission. In no event shall any Investor be required to contribute an amount
      in
      excess of the gross proceeds from the offering received by such
      Investor.

     

    (e)  The
      obligations of the Company and Investors under this Section 1.6 shall survive
      the completion of any offering of Registrable Securities in a registration
      statement under this Section 1, and otherwise.

     

    1.7  Reports
      Under Securities Exchange Act.
      With a
      view to making available the benefits of certain rules and regulations of the
      Commission, including Rule 144, that may at any time permit an Investor to
      sell
      securities of the Company to the public without registration or pursuant to
      a
      registration on Form SB-2, the Company agrees to:

     

    (a)  make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144, at all times after ninety (90) days after the effective date of the
      registration statement;

     

    (b)  take
      such
      action, including the voluntary registration of its Common Stock under Section
      12 of the Exchange Act, as is necessary to enable the Investors to utilize
      Form
      SB-2 for the sale of their Registrable Securities, such action to be taken
      as
      soon as practicable after the end of the fiscal year in which the registration
      statement is declared effective;

     

    
      
        
        

      

      
        C-7

        
          

        

      

      
        
        

      

    

     

    (c)  file
      with
      the Commission in a timely manner all reports and other documents required
      of
      the Company under the Securities Act and the Exchange Act; and

     

    (d)  furnish
      to any Investor, so long as the Investor owns any Registrable Securities,
      forthwith upon request (i) a written statement by the Company that it has
      complied with the reporting requirements of Rule 144 (at any time after ninety
      (90) calendar days after the effective date of the registration statement),
      the
      Securities Act and the Exchange Act (at any time after it has become subject
      to
      such reporting requirements), or that it qualifies as a registrant whose
      securities may be resold pursuant to Form SB-2 (at any time after it so
      qualifies), (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 in availing any Investor
      of any rule or regulation of the Commission that permits the selling of any
      such
      securities without registration or pursuant to such form.

     

    1.8  Transfer
      or Assignment of Registration Rights.
      The
      rights to cause the Company to register Registrable Securities pursuant to
      this
      Section 1 may be transferred or assigned, but only with all related obligations,
      by an Investor to a transferee or assignee who (a) acquires both at least 50,000
      Shares and Warrants to acquire at least 25,000 Shares (all subject to
      appropriate adjustment for stock splits, stock dividends and combinations)
      from
      such transferring Investor or (b) holds Registrable Securities immediately
      prior
      to such transfer or assignment; provided,
      that in
      the case of (a), (i) prior to such transfer or assignment, the Company is
      furnished with written notice stating the name and address of such transferee
      or
      assignee and identifying the securities with respect to which such registration
      rights are being transferred or assigned, (ii) such transferee or assignee
      agrees in writing to be bound by and subject to the terms and conditions of
      this
      Agreement including, without limitation, the provisions of Section 1.9 hereof
      and (iii) such transfer or assignment shall be effective only if immediately
      following such transfer or assignment the further disposition of such securities
      by the transferee or assignee is restricted under the Securities
      Act.

     

    1.9  “Market
      Stand-Off” Agreement.
      Each
      Investor hereby agrees that it will not, without the prior written consent
      of
      the Company and the managing underwriter (if a managing or lead underwriter
      is
      appointed), during the period commencing on the date of the final prospectus
      relating to the initial underwritten public offering of the Company and ending
      on the date specified by the Company and the managing underwriter (such period
      not to exceed one hundred eighty (180) calendar days) (i) lend, offer, pledge,
      sell, contract to sell, sell any option or contract to purchase, purchase any
      option or contract to sell, grant any option, right or warrant to purchase,
      or
      otherwise transfer or dispose of, directly or indirectly, any securities of
      the
      Company, including (without limitation) shares of Common Stock or any securities
      convertible into or exercisable or exchangeable for Common Stock (whether now
      owned or hereafter acquired) or (ii) enter into any swap or other arrangement
      that transfers to another, in whole or in part, any of the economic consequences
      of ownership of any securities of the Company, including (without limitation)
      shares of Common Stock or any securities convertible into or exercisable or
      exchangeable for Common Stock (whether now owned or hereafter acquired), whether
      any such transaction described in clause (i) or (ii) above is to be settled
      by
      delivery of securities, in cash or otherwise. The foregoing covenants shall
      not
      apply to the sale of any shares by an Investor to an underwriter pursuant to
      an
      underwriting agreement and shall only be applicable to the Investors if all
      the
      Company’s executive officers, directors and greater than five percent (5%)
      stockholders enter into similar agreements. Each Investor agrees to execute
      an
      agreement(s) reflecting (i) and (ii) above as may be requested by the managing
      or lead underwriters at the time of the underwritten public offering, and
      further agrees that the Company may impose stop transfer instructions with
      its
      transfer agent in order to enforce the covenants in (i) and (ii) above. The
      underwriters in connection with the Company’s initial underwritten public
      offering are intended third party beneficiaries of the covenants in this Section
      1.9 and shall have the right, power and authority to enforce such covenants
      as
      though they were a party hereto.

     

    
      
        
        

      

      
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    2.  Covenants
      of the Company to the Investors.

     

    2.1  Information
      Rights.
      The
      Company shall deliver to each Investor who holds (and continues to hold) at
      least 250,000 Shares (subject to appropriate adjustment for stock splits, stock
      dividends and combinations), upon the request of such Investor (which may be
      satisfied by filing of Company quarterly and annual reports under the Exchange
      Act):

     

    (a)  as
      soon
      as practicable, but in any event within one hundred twenty (120) calendar days
      after the end of each fiscal year of the Company, consolidated balance sheets
      of
      the Company and its subsidiaries, if any, as of the end of such fiscal year,
      and
      consolidated statements of income and consolidated statements of cash flows
      of
      the Company and its subsidiaries, if any, for such year, prepared in accordance
      with generally accepted accounting principles (“GAAP”),
      all
      in reasonable detail; and

     

    (b)  as
      soon
      as practicable, but in any event within forty-five (45) calendar days after
      the
      end of each of the first three (3) quarters of each fiscal year of the Company,
      consolidated balance sheets of the Company and its subsidiaries, if any, as
      of
      the end of such quarter, and consolidated statements of income and consolidated
      statements of cash flows of the Company and its subsidiaries, if any, for such
      quarter prepared in accordance with GAAP, all in reasonable detail.

     

    2.2  Confidentiality.
      Each
      Investor receiving any non-public information of the Company hereby agrees
      to
      hold in confidence and trust and to act in a fiduciary manner with respect
      to
      all information so provided; provided,
      however,
      that
      notwithstanding the foregoing, an Investor may include summary financial
      information concerning the Company and general statements concerning the nature
      and progress of the Company’s business in an Investor’s reports to its
      affiliates.

     

    3.  Legend.

     

    (a)  Each
      certificate representing Shares of Common Stock held by the Investors shall
      be
      endorsed with the following legend:

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE
      SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
      OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
      SECURITIES UNDER THE SECURITIES ACT, (B) AN OPINION OF COUNSEL, REASONABLY
      ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
      OR
      (C) REASONABLE ASSURANCE HAVING BEEN PROVIDED TO THE COMPANY THAT SUCH OFFER,
      SALE, ASSIGNMENT OR TRANSFER IS BEING MADE PURSUANT TO RULE 144 OR RULE 144A
      UNDER SAID ACT.

     

    
      
        
        

      

      
        C-9

        
          

        

      

      
        
        

      

    

     

    (b)  The
      legend set forth above shall be removed, and the Company shall issue a
      certificate without such legend to the transferee of the Shares represented
      thereby, if, unless otherwise required by state securities laws, (i) such Shares
      have been sold under an effective registration statement under the Securities
      Act, (ii) in connection with a sale, assignment or other transfer, such holder
      provides the Company with an opinion of counsel, reasonably acceptable to the
      Company, to the effect that such sale, assignment or transfer is being made
      pursuant to an exemption from the registration requirements of the Securities
      Act, or (iii) such holder provides the Company with reasonable assurance that
      the Shares are being sold, assigned or transferred pursuant to Rule 144 or
      Rule
      144A under the Securities Act.

     

    4.  Miscellaneous.

     

    4.1  Governing
      Law.
      The
      parties hereby agree that any dispute which may arise between them arising
      out
      of or in connection with this Agreement shall be adjudicated only before a
      Federal court located in the State of Delaware and they hereby submit to the
      exclusive jurisdiction of the federal and state courts of the State of Delaware
      with respect to any action or legal proceeding commenced by any party, and
      irrevocably waive any objection they now or hereafter may have respecting the
      venue of any such action or proceeding brought in such a court or respecting
      the
      fact that such court is an inconvenient forum, relating to or arising out of
      this Agreement or any acts or omissions relating to the registration of the
      securities hereunder, and consent to the service of process in any such action
      or legal proceeding by means of registered or certified mail, return receipt
      requested, in care of the address set forth below or such other address as
      the
      undersigned shall furnish in writing to the other. The parties further agree
      that in the event of any dispute, action, suit or other proceeding arising
      out
      of or in connection with this Agreement brought by a Subscriber (or transferee),
      the Company (and each other defendant) shall recover all of such party’s
      attorneys’ fees and costs incurred in each and every action, suit or other
      proceeding, including any and all appeals or petitions therefrom. As used
      herein, attorney’s fees shall be deemed to mean the full and actual costs of any
      investigation and of legal services actually performed in connection with the
      matters involved, calculated on the basis of the usual fee charged by the
      attorneys performing such services.

     

    4.2  Waivers
      and Amendments.
      This
      Agreement may be terminated and any term of this Agreement may be amended or
      waived (either generally or in a particular instance and either retroactively
      or
      prospectively) with the written consent of the Company and Investors holding
      at
      least a majority of the Registrable Securities then outstanding (the
“Majority
      Investors”).
      Notwithstanding the foregoing, additional parties may be added as Investors
      under this Agreement with the written consent of the Company and the Majority
      Investors. No such amendment or waiver shall reduce the aforesaid percentage
      of
      the Registrable Securities, the holders of which are required to consent to
      any
      termination, amendment or waiver without the consent of the record holders
      of
      all of the Registrable Securities. Any termination, amendment or waiver effected
      in accordance with this Section 4.2 shall be binding upon each holder of
      Registrable Securities then outstanding, each future holder of all such
      Registrable Securities and the Company.

     

    
      
        
        

      

      
        C-10

        
          

        

      

      
        
        

      

    

     

    4.3  Successors
      and Assigns.
      Except
      as otherwise expressly provided herein, the provisions of this Agreement shall
      inure to the benefit of, and be binding upon, the successors, assigns, heirs,
      executors and administrators of the parties hereto.

     

    4.4  Entire
      Agreement.
      This
      Agreement constitutes the full and entire understanding and agreement among
      the
      parties with regard to the subject matter hereof, and no party shall be liable
      or bound to any other party in any manner by any warranties, representations
      or
      covenants except as specifically set forth herein.

     

    4.5  Notices.
      All
      notices and other communications required or permitted under this Agreement
      shall be in writing and shall be delivered personally by hand or by overnight
      courier, mailed by United States first-class mail, postage prepaid, sent by
      facsimile or sent by electronic mail directed (a) if to an Investor, at such
      Investor’s address, facsimile number or electronic mail address set forth in the
      Company’s records, or at such other address, facsimile number or electronic mail
      address as such Investor may designate by ten (10) days’ advance written notice
      to the other parties hereto or (b) if to the Company, to its address, facsimile
      number or electronic mail address set forth on its signature page to this
      Agreement and directed to the attention of the Chief Executive Officer, or
      at
      such other address, facsimile number or electronic mail address as the Company
      may designate by ten (10) days’ advance written notice to the other parties
      hereto. All such notices and other communications shall be effective or deemed
      given upon delivery, on the date of mailing, upon confirmation of facsimile
      transfer or upon confirmation of electronic mail delivery.

     

    4.6  Interpretation.
      The
      words “include,” “includes” and “including” when used herein shall be deemed in
      each case to be followed by the words “without limitation.” The titles and
      subtitles used in this Agreement are used for convenience only and are not
      considered in construing or interpreting this Agreement.

     

    4.7  Severability.
      If one
      or more provisions of this Agreement are held to be unenforceable under
      applicable law, such provision shall be excluded from this Agreement, and the
      balance of the Agreement shall be interpreted as if such provision were so
      excluded, and shall be enforceable in accordance with its terms.

     

    4.8  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, but all of which together shall constitute one
      instrument.

     

    
      
        
        

      

      
        C-11

        
          

        

      

      
        
        

      

    

     

    4.9  Telecopy
      Execution and Delivery.
      A
      facsimile, telecopy or other reproduction of this Agreement may be executed
      by
      one or more parties hereto, and an executed copy of this Agreement may be
      delivered by one or more parties hereto by facsimile or similar electronic
      transmission device pursuant to which the signature of or on behalf of such
      party can be seen, and such execution and delivery shall be considered valid,
      binding and effective for all purposes. At the request of any party hereto,
      all
      parties hereto agree to execute an original of this Agreement as well as any
      facsimile, telecopy or other reproduction hereof.

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        C-12

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day, month
      and
      year first set forth above.

     

    “Company”

     

    MICROWAVE
      SATELLITE 

    TECHNOLOGIES,
      INC.

     

    By:

    
      
        

      

    

    Name:
      

    Title:
      

     

    Address:

    Microwave
      Satellite Technologies, Inc.

    259-263
      Goffle Road

    Hawthorne,
      NJ 07506

    Telephone:
      (973) 304-6080

    Telecopy:
      (973) 304-6081

    E-mail:
      info@mst-online.com

    Attention:
      Chief Executive Officer

     

    [COMPANY
      SIGNATURE PAGE TO REGISTATION RIGHTS AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day, month
      and
      year first set forth above.

     

    “Investor”

     

    ______________________________________

     

     

    
      By:

      
        
          

        

      

      Name:
        

      Title:
        

    

     

    Address:

     

    ____________________________________

    ____________________________________

    ____________________________________

    Telephone:___________________________

    Facsimile:____________________________

    Email:_______________________________

     

    [INVESTOR
      SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Schedule
      A

     

    Investors

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