Document:

1

     

    CITIGROUP
      INC.

    

    And

    

    CITIBANK,
      N.A.

    As
      Fiscal Agent, Registrar, Calculation Agent and Exchange
      Agent

    

    And

    

    DEXIA
      BANQUE INTERNATIONALE À LUXEMBOURG, SOCIÉTÉ ANONYME

    As
      Paying Agent and Transfer Agent

    

    
      
        

      

    AGENCY
      AGREEMENT

    Yen
      100,000,000,000 Floating Rate Notes due 2012

     

    Dated
      as of December 21, 2007

    
      

      
        
          

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

           

          2

           

        

      

    

    THIS
      AGREEMENT is made in London as of December 21, 2007, BY

    

    
      	
              (1)

            	
              CITIGROUP
                INC. (the “Issuer”).

            

    

    

    
      	
              (2)

            	
              CITIBANK,
                N.A. (“Citibank,
                N.A.”),
                which shall act as fiscal agent, registrar, calculation agent and
                exchange
                agent (hereinafter referred to in such respective capacities as
                “Fiscal
                Agent”, “Registrar”,
                “Calculation
                Agent”
                or as “Exchange
                Agent”,
                which expressions shall include any successor or successors thereto).
                

            

    

    

    
      	
              (3)

            	
              DEXIA
                BANQUE INTERNATIONALE À LUXEMBOURG, SOCIÉTÉ ANONYME, which shall act as
                paying agent and transfer agent (hereinafter referred to as “Paying
                Agent”
                and “Transfer
                Agent”,
                which expression shall include any successor or successors
                thereto).

            

    

    

    WHEREAS
      pursuant to the Terms Agreement dated December 4, 2007 (the “Underwriting
      Agreement”)
      between the Issuer and the Underwriter named therein, the Issuer has agreed
      to
      issue its Yen 100,000,000,000 Floating Rate Notes due December 2012 (the
“Notes”);
      and

    

    WHEREAS
      the Issuer wishes to appoint Citibank, N.A. to act as Fiscal Agent, Registrar,
      Calculation Agent and Exchange Agent and Dexia Banque Internationale à
Luxembourg, société anonyme as Paying Agent and Transfer Agent in relation to
      the Notes upon the terms and conditions set forth in this Agreement and the
      Schedules hereto.

     

    IT
      IS
      HEREBY AGREED as follows:

     

    
      
        	1.	DEFINITIONS,
                INTERPRETATION

      

       

    

    The
      following terms shall, unless the context otherwise requires, have the
      respective meanings indicated below:

    

    “Agent(s)”
      means
      any
      of the Fiscal Agent, the Registrar, the Paying Agent, the Calculation Agent,
      the
      Exchange Agent and the Transfer Agent.

    

    “Conditions”
      means
      the terms and conditions of the Notes, as contained in the applicable Global
      Notes, in the Prospectus Supplement dated December 4, 2007 to the Prospectus
      dated March 2, 2006, and the Indenture.

    

    “Global
      Notes”
      means
      either one or both of (i) the International Global Note in the form of Schedule
      1 attached hereto and (ii) the DTC Global Notes in the form of Schedule 2
      attached hereto (also referred to herein as the “International
      Global Note” and
      the“DTC
      Global Note”,
      respectively).

    

    “Indenture”
      means
      the Indenture dated as of March 15, 1987, as amended and supplemented to date,
      between the Issuer and The Bank of New York (the “Trustee”).

    

    Terms
      not
      defined herein shall have the same meanings as are assigned thereto in the
      Underwriting Agreement and the Conditions.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3

    
      
         

        
          
            	2.	APPOINTMENTS

          

           

        

      

    

    
      2.1          The
        Issuer hereby appoints Citibank, N.A. to act as Fiscal Agent, Registrar,
        Calculation Agent and Exchange Agent in respect of the Notes and Global Notes.
        

    

    

    2.2         
      Citibank,
      N.A. hereby accepts such appointments and the resulting obligations, and agrees
      to act in such capacities, on the terms and conditions set out in this Agreement
      and the Schedules hereto. In particular, the Fiscal Agent agrees to effect
      any
      publication of notices pursuant to the Conditions.

    

    2.3         
      The
      Issuer hereby appoints Dexia Banque Internationale à Luxembourg, société anonyme
      to act as Paying Agent and Transfer Agent in respect of the Notes and Global
      Notes. 

    

    2.4         
      Dexia
      Banque Internationale à Luxembourg, société anonyme hereby accepts such
      appointments and the resulting obligations, and agrees to act in such
      capacities, on the terms and conditions set out in this Agreement and the
      Schedules hereto.

    

    2.5         
      The
      obligations of the Agents are several and not joint.

    
      
         

        
          
            	3.	THE
                    NOTES

          

           

        

      

    

    3.1         
      The
      Notes
      shall be represented by permanent Global Notes without interest coupons as
      specified in the Conditions. Each International Global Note and DTC Global
      Note
      shall be substantially in the forms attached hereto as Schedules 1 and 2,
      respectively, in each case with such changes as may be agreed between the Issuer
      and the Trustee. The Conditions shall be attached to, or endorsed upon, each
      Global Note. In the event that individual definitive Notes are issued, the
      parties shall enter into a supplement to this Agreement to provide for the
      matters set forth herein with regard to such definitive Notes.

    

    3.2         
      Each
      Global Note shall be signed manually by a duly authorised officer of the Issuer
      and dated the Issue Date. Each Global Note shall be authenticated manually
      by
      Citibank, N.A., as authenticating agent on behalf of the Trustee, and delivered
      to (i) in the case of the International Global Note, Citibank, N.A. as common
      depositary for Euroclear and Clearstream, and (ii), in the case of the DTC
      Global Notes, Citibank, N.A., London office as custodian for The Depository
      Trust Company, New York (“DTC”).

    
      
         

        
          
            	4.	PAYING
                    AGENCY

          

           

        

      

    

    4.1         
      The
      Issuer shall remit the funds necessary for the payment of interest on and
      principal of the Notes to the Fiscal Agent, in Yen in same-day funds, to such
      account at the Fiscal Agent in London as the Fiscal Agent may from time to
      time
      specify (the “Redemption
      Account”)
      on the
      Business Day such payment is due, provided always that, if any due date shall
      not be a Business Day, the Issuer shall make such transfer to the account of
      the
      Fiscal Agent on the next succeeding Business Day (for the purposes of this
      Clause 4, Business Day shall mean a day on which commercial banks and foreign
      exchange markets settle payments and are open for general business in each
      of
      London, Tokyo and The City of New York.

    

    The
      Issuer hereby authorizes and directs the Fiscal Agent, from the amounts so
      paid
      to it, to make payment of the principal of, and interest on, the Notes on the
      due date for payment set forth in the Conditions and this Agreement. If
      applicable, the Fiscal Agent will, from funds so received from the Issuer,
      credit to the account of the Paying Agent the amounts of all such payments
      made
      by it in accordance with the provisions of this Agreement.

    

    The
      Issuer shall confirm to the Fiscal Agent not later than 10:00 a.m. (London
      time)
      on the second Business Day before the relevant date for such payment that it
      has
      issued irrevocable payment instructions for such payment to be made.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
4

     

    4.2         
      If
      for
      any reason the Fiscal Agent does not receive unconditionally the full amount
      payable by the Issuer on the relevant due date in respect of all the outstanding
      or maturing Notes, the Fiscal Agent shall forthwith notify immediately the
      Issuer by telephone followed by facsimile and the Fiscal Agent shall not be
      bound to make any payment of principal or interest in respect of the Notes
      until
      the Fiscal Agent has received to its order the full amount of the monies then
      due and payable in respect of all outstanding or maturing Notes, provided,
      however, that if the Fiscal Agent shall, in its discretion, make any payment
      of
      principal or interest on or after the due date therefor in respect of the Notes
      prior to its unconditional receipt of the full amount then due and payable
      in
      respect of all outstanding Notes, the Issuer will promptly pay such amount
      to
      the Fiscal Agent and will compensate the Fiscal Agent at a rate equal to the
      Fiscal Agent’s cost of funding.

    

    4.3         
      Out
      of
      the sums paid to the Fiscal Agent in respect of interest and principal on the
      Notes, the Fiscal Agent will make payment free of charge to the registered
      holder of the International Global Note and the DTC Global Note as stipulated
      in
      Clause 9 below, in the amounts specified in the Conditions. The Fiscal Agent
      shall obtain from the Registrar, and the Registrar shall supply, such details
      as
      are required for the Paying Agent to make payment as stated above.

    

    
      	
              4.4

            	
               

            	
              In
                respect of the monies paid to it relating to any Note, the Fiscal
                Agent

            

    

     

    
      	
            	4.4.1	
              shall
                not be entitled to exercise any lien, right of set-off or similar
                claim
                (including without limitation any claim arising from or relating
                to any
                other issue of securities by the Issuer),

            

    

    
      
        	
              	
                4.4.2

              	
                shall
                  not be required to account for interest thereon
                  and

              

      

      
        
          	
                	
                  4.4.3

                	
                  money
                    held by it need not be segregated except as may be required by
                    applicable
                    law.

                

        

         

      

    

    
      
        
          
            	5.	DOCUMENTS FOR
                    INSPECTION AND
                    PUBLICATION OF NOTICES

          

           

        

      

    

    5.1         
      On
      behalf
      and at the request and expense of the Issuer, the Fiscal Agent shall cause
      to be
      published any notices required to be given by the Issuer in accordance with
      the
      Conditions.

    

    5.2        
      The
      Issuer shall provide to the Fiscal Agent sufficient copies of all documents
      required by the Conditions to be available for issue or inspection, and the
      Fiscal Agent shall make such copies available to Noteholders upon their
      request.

    

    5.3         
      To
      the
      extent practicable, the Issuer shall provide the Fiscal Agent with a copy (prior
      to publication) of all notices to be issued in connection with the
      Notes.

     

    
      
        
          	6.	CANCELLATION OF THE GLOBAL
                  NOTES

        

         

      

    

    6.1         
      Subject
      to the terms of the Indenture, promptly upon the Issuer’s request, the Registrar
      shall take all measures necessary to cancel any Notes which the Issuer has
      repurchased or whose maturity has been accelerated pursuant to the Conditions.
      The Registrar shall cause any such Notes (i) to the extent represented by the
      International Global Note, to be cancelled resulting in a reduction in the
      aggregate amount of the Notes represented by the International Global Note
      by
      the aggregate amount of Notes so cancelled, and (ii) to the extent represented
      by the DTC Global Note, to be cancelled in accordance with the procedures
      established for that purpose by DTC, resulting in a reduction in the aggregate
      amount of the Notes represented by the DTC Global Note by the aggregate amount
      of the Notes so cancelled.

    

    6.2         
      On
      the
      same day such cancellation is effected, the Registrar shall record such
      cancellation of Notes on the Register in such a way that the aggregate principal
      amount of Notes cancelled at any time together with the aggregate principal
      amount of Notes outstanding and represented by the Global Notes shall equal
      the
      aggregate principal amount of Notes originally issued by the
      Issuer.

    

    6.3         
      The
      Registrar shall upon request furnish the Issuer with a notice of cancellation
      signed by an authorized officer of the Registrar confirming the cancellation
      of
      such Notes and the corresponding reduction of the relevant Global
      Note(s).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5

     

    
      
        
          	7.	DUTIES OF THE
                  REGISTRAR

        

         

      

    

    7.1         
      The
      Registrar shall maintain the Register in London in accordance with the
      Conditions. The Register shall show the aggregate amount of Notes represented
      by
      each Global Note at the date of issue and all subsequent transfers and exchanges
      involving a change in such amounts and the names and addresses of the registered
      holders (each a “Payee”).
      On
      the first Business Day after the Record Date for any interest payment on the
      Notes, the Registrar shall send payment details in respect of the Payees and
      the
      Yen accounts to which transfers should be made to the Fiscal Agent.

    

    7.2         
      Transfers
      or exchanges of Notes will be made in accordance with the Conditions, the
      procedures established for this purpose between Euroclear, Clearstream, DTC
      and
      the Registrar, and Euroclear, Clearstream and DTC’s regulations applicable to
      such transfers or exchanges. Any such transfer or exchange which results in
      a
      change in the aggregate principal amount of Notes held by Euroclear, Clearstream
      and DTC shall be notified by Euroclear, Clearstream and DTC to the Registrar.
      The Registrar shall promptly enter details of the transfer or exchange in the
      Register, which entry shall, without further action, cause the aggregate
      principal amount represented by each Global Note to be amended
      accordingly.

    

    7.3         
      The
      Registrar shall at all reasonable times during office hours make the Register
      available to the Issuer and the Fiscal Agent or any person authorised by either
      of them for inspection and for the taking of copies thereof or extracts
      therefrom, and the Registrar shall deliver to such persons such information
      contained in the Register or relating to the Notes as they may reasonably
      request.

    

    
      	
              8.

            	
              DUTIES
                OF THE TRANSFER AGENT

            

    

    

    If
      and to
      the extent so specified by the Conditions and in accordance therewith, or if
      otherwise requested by the Issuer, the Transfer Agent shall make available
      all
      relevant forms of transfer, inform the Registrar of the name and address of
      the
      relevant person to be inserted in the Register and carry out such other acts
      as
      may be necessary to give effect to the Conditions and this
      Agreement.

     

    
      
        
          
            	9.	PAYMENTS TO DTC
                    NOTEHOLDERS

          

           

        

      

    

    9.1         
      All
      amounts of principal and interest due in respect of the Notes which are
      represented by the DTC Global Note (each a “DTC
      Amount”)
      shall
      be paid in U.S. dollars (each such payment being referred to herein as a
“U.S. Dollar
      Payment”),
      unless DTC has advised the Fiscal Agent that the relevant Noteholder has made
      an
      effective election to receive all or a portion of its payment in Yen outside
      DTC
      (each a “Yen
      Payment”).

    

    9.2         
      The
      Paying Agent shall, from each DTC Amount received by it, make U.S. Dollar
      Payments in accordance with the Conditions and Yen Payments in accordance with
      the Conditions.

    

    
      	
              10.

            	
            	
               DUTIES
                OF EXCHANGE AGENT

            

    

    

    For
      the
      purposes of this Clause 10, a “payment date” shall be each date on which the
      Issuer is obligated to remit funds to the Fiscal Agent pursuant to Clause
      4.1.

    

    The
      Exchange Agent shall:

    

    
      	
              (i)

            	
              accept
                Yen by remittance to an account maintained by the Exchange Agent
                of the
                total amount of interest or principal due on any payment date on
                Notes
                held by Cede & Co. (as nominee of DTC) on the Record Date. The
                Exchange Agent shall be advised by Cede & Co. (as nominee of DTC) if
                any beneficial holders of the Notes held by Cede & Co. (as nominee of
                DTC) have elected to receive payment in Yen and, if so, the amount
                of
                Notes held by such holders and the accounts to which such payments
                in Yen
                are to be wired. On the payment date, the Exchange Agent shall wire
                payment in the appropriate Yen amounts to the accounts indicated.
                The
                remainder on such payment date shall be exchanged by the Exchange
                Agent
                pursuant to sub-clause (ii) below into U.S. dollars and, after deduction
                of any costs relating to such exchange, shall be paid to Cede & Co.
                (as nominee of DTC) on the payment date;
                and

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
6

     

    
      	
              (ii)

            	
              at
                or prior to 11:00 a.m., London time, on the second London business
                day
                preceding the applicable payment date, enter into a contract for
                the
                purchase of U.S. dollars with the Specified Amount of Yen for settlement
                on such payment date. “Specified
                Amount”
                shall mean the aggregate amount of Yen payable to all Noteholders
                holding
                Notes through participants of DTC that have not elected to receive
                payments in Yen. The amount of U.S. dollars payable in respect of
                a
                particular payment under the DTC Global Note will be equal to the
                amount
                of Yen otherwise payable exchanged into U.S. dollars at the Yen/U.S.$
                exchange rate prevailing as at 11:00 a.m. (London time) on the second
                London business day prior to the relevant payment date, less any
                costs
                incurred by the Exchange Agent for such conversion (such costs to
                be
                shared pro rata among holders under the DTC Global Note accepting
                U.S.
                dollar payments in proportion of their respective holdings). If an
                exchange rate bid quotation is not so available, the Exchange Agent
                shall
                obtain a bid quotation from a leading foreign exchange bank in London
                selected by the Exchange Agent after consultation with the Issuer.
                If no
                bid quotation is so available, payment will be made in Yen to the
                account
                or accounts specified by DTC to the Exchange Agent. In this sub-clause
                (ii), the term “London business day” shall mean any day on which
                commercial banks and foreign exchange markets settle payments in
                New York
                City, Tokyo and London.

            

    

    
      
         

        
          
            	10A.	DUTIES AS CALCULATION
                    AGENT

          

           

        

      

    

    The
      Calculation Agent shall obtain such quotes and rates relating to Yen LIBOR
      and/or make such determinations, calculations, adjustments, notifications and
      publications as may be required to be made by it by the Conditions at the times
      and otherwise in accordance with the Conditions; and shall maintain a record
      of
      all quotations obtained by it and of all amounts, rates and other items
      determined or calculated by it and make such records available for inspection
      at
      all reasonable times by the Issuer and the Fiscal Agent.

     

    
      
        
          
            	11.	CONDITIONS OF
                    APPOINTMENT

          

           

        

      

    

    11.1         The
      Issuer will pay to the Agents a remuneration for all services rendered hereunder
      by the Agents in connection with the Notes together with any expenses incurred
      as separately agreed upon by the Agents and the Issuer.

    

    11.2         The
      Issuer will indemnify and hold harmless each of the Agents against any loss,
      liability or expense which it may incur or any claim, action or demand which
      may
      be made against it resulting from the negligence or wilful misconduct on the
      part of the Issuer (or its officers, employees or agents (other than the Agents
      and their officers, employees, and agents)) and arising out of or in connection
      with such Agent’s appointment or the exercise of its powers and duties hereunder
      without negligence or wilful misconduct on the part of such Agent.

    

    11.3         Each
      Agent will indemnify and hold harmless the Issuer against any loss, liability
      or
      expense incurred by the Issuer or any claim, action or demand which may be
      made
      against the Issuer resulting from the negligence or wilful misconduct on the
      part of such Agent (or such Agent’s officers, employees or agents) and arising
      out of or in connection with such Agent’s duties hereunder. Notwithstanding the
      foregoing, under no circumstances will any Agent be liable to the Issuer or
      any
      other person for any consequential loss (being loss of business, goodwill,
      opportunity or profit) even if advised to the possibility of such loss or
      damages.

    

    11.4         The
      indemnities above shall survive the termination or expiry of this
      Agreement.

    

    11.5         Each
      of
      the Agents shall be protected and shall incur no liability for or in respect
      of
      any action taken, omitted or suffered in reliance upon any instruction or
      communication from the Issuer or any document reasonably believed by it to
      be
      genuine and to have been delivered, signed or sent by the proper party or
      parties in accordance with the provisions hereof, except such as may result
      from
      its own negligence or wilful misconduct or that of its officers, employees
      or
      agents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
7

     

    11.6         In
      acting
      hereunder and in connection with the Notes, the Agents do not assume any
      relationship of agency and trust for the Noteholders, and shall not have any
      obligation towards them except that all funds held by the Fiscal Agent for
      payment of principal of or interest on the Notes shall be held exclusively
      for
      the benefit of and for payment to the Noteholders and shall be applied as set
      forth herein and in the Conditions. Except as otherwise required by applicable
      law, no Agent will be required to segregate any funds held by it hereunder
      from
      any of its other funds.

    

    11.7         Nothing
      herein shall be deemed to require any Agent to advance its own funds in the
      performance of its duties hereunder.

    

    11.8         The
      Agents may consult with legal and other professional advisers selected in good
      faith and satisfactory to them and the opinion of such advisers shall be full
      and complete protection in respect of any action taken, omitted or suffered
      hereunder in good faith and without negligence and in accordance with the
      opinion of such advisers.

    

    11.9         The
      Agents shall be obliged to perform such duties and only such duties as are
      herein specifically set forth, and no implied duties or obligations shall be
      read into this Agreement against the Agents. No Agent shall be under any
      obligation to take any action hereunder which it expects will result in any
      expense or liability of such Agent, the payment of which within a reasonable
      time is not, in its opinion, assured to it. The obligations of the Agents
      hereunder are several and not joint.

    

    11.10       The
      Agents, their affiliates and their respective officers and employees, in their
      individual or any other capacity, may become the owner of, or acquire any
      interest in, any Notes with the same rights that the Agents would have it they
      were not the Agents hereunder. 

     

    
      
        
          
            	12.	CHANGE IN
                    AGENTS

          

           

        

      

    

    12.1         Each
      of
      the Fiscal Agent, Registrar, Exchange Agent, Calculation Agent, Paying Agent
      and
      Transfer Agent in its capacity as such may be removed at any time by the giving
      to it of at least 30 days’ written notice to that effect signed on behalf of the
      Issuer specifying the date on which such removal shall become effective. Each
      of
      the Fiscal Agent, Registrar, Exchange Agent, Paying Agent and Transfer Agent
      may
      at any time resign by giving at least 30 days’ written notice (unless the Issuer
      agrees to accept less notice) to that effect to the Issuer specifying the date
      on which such resignation shall become effective. Notwithstanding the foregoing,
      no such resignation or removal shall take effect within 30 days before or after
      any due date for payment of any Notes or before a new Fiscal Agent, Registrar,
      Exchange Agent, Paying Agent, Calculation Agent and Transfer Agent, as the
      case
      may be, shall have been appointed by the Issuer as hereinafter provided, and
      such new Agent shall have accepted such appointment. Any change in any Agent
      shall be notified by the Issuer to the other Agent(s).

    

    12.2         The
      Issuer agrees with the Fiscal Agent that if, by the day falling 10 days before
      the expiry of any notice under Clause 12.1 above, the Issuer has not appointed
      a
      replacement Fiscal Agent, then the Fiscal Agent shall be entitled, on behalf
      of
      the Issuer, to appoint in its place any reputable financial institution of
      good
      standing and the Issuer shall not unreasonably object to such
      appointment.

    

    12.3         Upon
      the
      effectiveness of the appointment of any successor Fiscal Agent, Registrar,
      Exchange Agent, Paying Agent, Calculation Agent and Transfer Agent, as the
      case
      may be, pursuant to Clause 12.1, the Fiscal Agent, Registrar, Exchange Agent,
      Paying Agent, Calculation Agent and Transfer Agent so removed shall cease to
      be
      a Fiscal Agent, Registrar, Exchange Agent, Paying Agent, Calculation Agent
      and
      Transfer Agent, as the case may be, hereunder. Prior to the effectiveness of
      such appointment, the Fiscal Agent, Registrar, Exchange Agent, Paying Agent,
      Calculation Agent and Transfer Agent shall hold all moneys deposited with it
      or
      held by it hereunder in respect of the Notes to the order of the respective
      successor Fiscal Agent, Registrar, Exchange Agent, Paying Agent, Calculation
      Agent and Transfer Agent.

     

    
      
        
          
            	13.	NOTICES

          

           

        

      

    

    Notices
      shall be in writing (including by facsimile) and addressed to the relevant
      party
      hereto as follows:

    

    
      	
              (a)

            	
              If
                to the Issuer:

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
8

     

    Citigroup
      Inc.

    153
      East
      53rd
      Street,
      5th
      floor

    New
      York,
      New York 10043

    Attention:
      Treasury Department

    Telephone:
      212-559-3553 

    Telefax: 212-793-5629 

    

    
      	
              (b)

            	
              If
                to the Fiscal Agent, Registrar, Calculation Agent and Exchange
                Agent:

            

    

    

    Citibank,
      N.A.

    Citigroup
      Centre

    Canada
      Square

    Canary
      Wharf

    London
      E14 5LB

    Attn:
      Agency & Trust, Bond Desk

    

    Telefax: 44-020-7508-3878

    

    
      	
              (c)

            	
              If
                to the Paying Agent:

            

    

    

    Dexia
      Banque Internationale à Luxembourg, société anonyme

    69,
      route
      d'Esch

    L-2953
      Luxembourg

    Telephone:
      352-45-90-1

    Telefax: 352-45-90-42-27

     

    or
      at any
      other address of which any of the foregoing shall have notified the others,
      and
      shall be deemed to have been given when received by the relevant
      party.

    

    
      	
              14.

            	
            	
               APPLICABLE
                LAW, PLACE OF
                JURISDICTION

            

    

    

    14.1         This
      Agreement shall be subject to New York law.

    

    14.2         The
      non-exclusive place for all proceedings arising out of this agreement shall
      be
      New York.

    

    
      	
              15.

            	
            	
               MISCELLANEOUS

            

    

    

    15.1         The
      Fiscal Agent agrees to perform its obligations hereunder through its London
      Branch to the extent that this is necessary or appropriate in order to make
      payments to DTC or DTC Participants in accordance with the
      Conditions.

    

    15.2         The
      Fiscal Agent shall promptly advise the Issuer of any notice, including any
      notice declaring Notes due, which it may receive pursuant to the
      Conditions.

    

    15.3         Should
      any of the provisions of this Agreement be or become invalid, in whole or in
      part, the other provisions of this Agreement shall remain in force. Invalid
      provisions shall, according to the intent and purpose of this Agreement, be
      replaced by such valid provisions which in their economic effect come as close
      as legally possible to that of the invalid provisions.

    

    15.4    
          This
      Agreement may be signed in two counterparts.

    

    15.5         Terms
      not
      defined in this Agreement shall have the meanings ascribed to them in the
      Underwriting Agreement or the Conditions, as the case may be.

    

    15.6         If
      there
      is any conflict between the terms of this Agreement and the terms of the
      Indenture, the terms of the Indenture shall control.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9

     

    This
      Agreement has been entered into effective the date stated at the beginning
      hereof.

     

    CITIGROUP
      INC.

    

    /s/
      Charles E. Wainhouse

    Assistant
      Treasurer

     

    CITIBANK,
      N.A.

    

    /s/
      Viola
      Japaul

    Director,
      Agency and Trust

    

    DEXIA
      BANQUE INTERNATIONALE À LUXEMBOURG,
      SOCIÉTÉ ANONYME

    

    
      	/s/
              Pierre-Francois Henrion 	 	 	/s/
              Jean-Jacques KinnenEXHIBIT 10.16

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

      This amended and restated  employment  agreement (the "Agreement") is made
and entered into effective as of October 1, 2007 (the "Effective  Date"), by and
between  Paul  DePond  ("Employee")  and  Notify  Technology   Corporation  (the
"Company").

                                    RECITALS

      A. The Company  desires to retain the services of  Employee,  and Employee
desires to be employed by the Company,  on the terms and conditions set forth in
this Agreement.

      B. Certain  capitalized terms used in the Agreement are defined in Section
8 below.

      In  consideration  of  the  mutual  covenants  herein  contained,  and  in
consideration  of the  continuing  employment  of Employee by the  Company,  the
parties agree as follows:

      1. Duties and Scope of Employment.

            (a) Position.  The Company shall employ  Employee in the position of
Chairman,   President   and  Chief   Executive   Officer,   with  such   duties,
responsibilities  and  compensation  as in  effect  as of  the  Effective  Date;
provided,  however,  that the Company's  Board of Directors  (the "Board") shall
have the right,  prior to the occurrence of a Change of Control,  to revise such
responsibilities  and  compensation  from  time to time as the  Board  may  deem
necessary of appropriate.

            (b) Obligations. Employee shall devote his full business efforts and
time to the Company and its  subsidiaries.  The  foregoing,  however,  shall not
preclude  Employee  from  engaging  in such  activities  and  services as do not
interfere or conflict with his responsibilities to the Company.

      2. At-Will  Employment.  The Company and Employee  acknowledge  Employee's
employment is and shall continue to be at-will, as defined under applicable law.
If  Employee's  employment  terminates  for any  reason,  Employee  shall not be
entitled to any payments,  benefits,  damages, awards or compensation other than
as provided by this  Agreement,  or as may  otherwise be available in accordance
with the Company's  established employee plans and practices or other agreements
with the Company at the time of termination.
<PAGE>

                                                                   EXHIBIT 10.16

      3. Compensation and Benefits.

            (a)  Base   Compensation.   The  Company   shall  pay   Employee  as
compensation for services a base salary at an annualized rate of $255,000.  Such
salary shall be reviewed at least  annually and shall be increased  from time to
time subject to  accomplishment  of such performance and contribution  goals and
objectives  as may be  established  from time to time by the Board.  Such salary
shall be paid periodically in accordance with normal Company payroll. The annual
compensation specified in this Section 3(a), together with any increases in such
compensation  that the Board may grant from time to time, is referred to in this
Agreement as "Base Compensation".

            (b) Bonus.  Beginning with the Company's current fiscal year and for
each fiscal year thereafter during the term of this Agreement, Employee shall be
eligible to receive an annual bonus (the "Bonus") based upon targets approved by
the Board.  The Bonus payable  hereunder shall be payable in accordance with the
Company's normal practices and policies.

            (c) Employee Benefits.  Employee shall be eligible to participate in
the employee benefit plans and employee  compensation programs maintained by the
Company  applicable  to other key employees of the Company,  including  (without
limitation) life, disability, health, accident and other insurance programs, and
paid  vacations,  subject  in each case to the  generally  applicable  terms and
conditions  of the plan or program in question and to the  determination  of any
committee  administering such plan or program. In addition,  all dental expenses
by  Employee  and  Employee's  family  shall be  reimbursed  to  Employee by the
Company.  Employee  shall be eligible for thirty (30) days of Personal  Time Off
(PTO) per year, which shall accrue monthly. In addition,  all expenses regarding
state and federal income tax preparation shall be reimbursed to Employee.

            (d)  Expenses.  The  Company  will  pay or  reimburse  Employee  for
reasonable  travel,  entertainment or other expenses incurred by Employee in the
furtherance  of or in  connection  with the  performance  of  Employee's  duties
hereunder in accordance with the Company's established policies.  Employee shall
furnish  the Company  with the  evidence of such  expenses  within a  reasonable
period of time from the date that they were incurred.

      4. Severance Benefits.

            (a)  Termination  Following  A  Change  of  Control.  If  Employee's
employment  with the  Company  terminates  at any time within  twenty-four  (24)
months after a Change of Control,  then, subject to Section 5, Employee shall be
entitled to receive severance benefits as follows:

                  (i)   Involuntary   Termination.   If  Employee's   employment
terminates as a result of an Involuntary  Termination  (as defined in Section 8)
other than for Cause (as defined in Section 8), then Employee  shall be entitled
to receive (i) a continuation of Employee's Base Compensation for a period equal
to eighteen (18) months and (ii) the maximum amount of Employee's  Bonus for the
fiscal year in which such  Involuntary  Termination  occurs that could have been
received by Employee had Employee  satisfied  all  conditions  necessary to earn
such maximum amount of the Bonus during the remainder of such fiscal year.
<PAGE>

                                                                   EXHIBIT 10.16

                  (ii) Voluntary Resignation; Termination for Cause. If Employee
voluntarily terminates employment with the Company, other than as a result of an
Involuntary  Termination,  or if Employee is terminated for Cause, then Employee
shall not be entitled to receive  severance or other  benefits  except for those
(if any) as may then be established under the Company's then existing  severance
and benefits plans and policies at the time of such termination.

                  (iii) Disability:  Death. If the Company terminates Employee's
employment as a result of Employee's  Disability,  or such Employee's employment
is  terminated  due to the death of Employee,  then,  except as provided  below,
Employee  shall not be entitled to receive  severance or other  benefits  except
those (if any) as may then be  established  under the  Company's  then  existing
severance  and  benefits  plans  and  policies  at the time of such  Disability.
Notwithstanding the foregoing, if Employee's employment is terminated due to the
death of Employee,  then  Employee  shall be entitled to receive a one-time cash
payment equal to (i) the aggregate amount of Employee's Base  Compensation for a
period equal to twelve (12) months minus (ii) the aggregate amount that Employee
is entitled to receive under the Company-paid life insurance policy.

            (b) Termination Apart from Change of Control. If, during the term of
this Agreement,  Employee's employment with the Company terminates, either prior
to the  occurrence  of a Change of Control or after the  twenty-four  (24) month
period following a Change of Control, then Employee shall be entitled to receive
severance benefits as follows:

                  (i)   Involuntary   Termination.   If  Employee's   employment
terminates as a result of  Involuntary  Termination  other than for Cause,  then
Employee  shall be entitled to receive (i) a  continuation  of  Employee's  Base
Compensation  for a period  equal to twelve  (12)  months  and (ii) the  maximum
amount  of  Employee's  Bonus  for the  fiscal  year in which  such  Involuntary
Termination  occurs  that could have been  received  by  Employee  had  Employee
satisfied  all  conditions  necessary to earn such  maximum  amount of the Bonus
during the remainder of such fiscal year.

                  (ii) Voluntary Resignation; Termination for Cause. If Employee
voluntarily terminates employment with the Company, other than as a result of an
Involuntary  Termination,  or if Employee is terminated for Cause, then Employee
shall not be entitled to receive  severance or other  benefits  except for those
(if any) as may then be established under the Company's then existing  severance
and benefits plans and policies at the time of such termination.

                  (iii) Disability;  Death. If the Company terminates Employee's
employment as a result of Employee's  Disability,  or such Employee's employment
is  terminated  due to the death of Employee,  then,  except as provided  below,
Employee  shall not be entitled to receive  severance or other  benefits  except
those (if any) as may then be  established  under the  Company's  then  existing
severance  and  benefits  plans  and  policies  at the time of such  Disability.
Notwithstanding the foregoing, if Employee's employment is terminated due to the
death of Employee,  then  Employee  shall be entitled to receive a one-time cash
payment equal to (i) the aggregate amount of Employee's Base  Compensation for a
period equal to twelve (12) months minus (ii) the aggregate amount that Employee
is entitled to receive under the Company-paid life insurance policy.
<PAGE>

                                                                   EXHIBIT 10.16

      (c)  Benefits.  In the event  Employee is entitled to  severance  benefits
pursuant  to Section  4(a)(i)  or  Section  4(b)(i),  then in  addition  to such
severance benefits, Employee shall receive (i) 100% Company-paid dental and life
insurance  coverage as provided  to  Employee,  and  Employee's  dependents,  if
applicable, immediately prior to Employee's termination, (ii) reimbursement from
the Company  for all  premium  payments  paid by  Employee  under COBRA  ("COBRA
Payments") for continuing health insurance coverage as provided to Employee, and
Employee's   dependents,   if  applicable,   immediately   prior  to  Employee's
termination (collectively,  the "Company-Paid Coverage"),  provided, however, at
the election of Employee and in lieu of such reimbursements from the Company for
COBRA Payments,  Employee may receive a one-time cash payment equal to the total
amount of the COBRA  Payments  Employee  would be required to make for  eighteen
(18) months following such termination for continuing health insurance  coverage
at the same coverage level as provided to Employee,  and Employee's  dependents,
if  applicable,   immediately  prior  to  Employee's   termination,   and  (iii)
outplacement  services for a period of up to six (6) months following Employee's
termination;  provided,  however,  that the maximum  amount of fees and expenses
that the Company  shall be obligated to pay for such  services  shall be $9,000.
Company-Paid  Coverage  shall  continue  until the earlier of (i) eighteen  (18)
months following  termination in the case of a termination  described in Section
4(a)(i) or Section  4(b)(i),  or (ii) the date  Employee  becomes  covered under
another  employer's  group health,  dental or life insurance plan (to the extent
covered  under  such  plans).  In  addition,  without  regard to the  reason for
termination  of  Employee's  employment:  (i) the Company shall pay Employee any
unpaid salary and Bonus due for periods prior to the Termination  Date; (ii) the
Company shall pay Employee all of Employee's  accrued and unused PTO through the
Termination  Date; and (iii)  following  submission of proper expense reports by
Employee,  the Company shall reimburse Employee for all expenses  reasonably and
necessarily  incurred by Employee in connection with the business of the Company
prior to termination. These payments shall be made promptly upon termination and
within the period of time mandated by law.

      (d)  Restricted  Stock;  Options.  In the event  Employee  is  entitled to
severance  benefits  pursuant  to Section  4(a)(i)  or  Section  4(b)(1) of this
Agreement,  then (i) all  Company  stock  purchased  by  Employee  subject  to a
repurchase  right in favor of the  Company  shall  vest and any such  repurchase
right shall lapse, and (ii) all options to purchase capital stock of the Company
held by Employee at the Termination  Date (the "Options")  shall fully vest upon
the  Termination  Date and Employee shall have the right to exercise the Options
as to all of the shares of  capital  stock  underlying  the  Options,  including
shares of capital stock which would not otherwise be vested or  exercisable,  in
accordance with the terms of the applicable option agreement relating to each of
the Options.
<PAGE>

                                                                   EXHIBIT 10.16

      5.  Limitations  on Payments.  In the event that the  severance  and other
benefits  provided for in this  Agreement  or otherwise  payable to Employee (i)
constitute  "parachute  payments"  with in the  meaning of  Section  280G of the
Internal  Revenue  Code of 1986,  as amended  (the "Code") and (ii) but for this
Section, would be subject to the excise tax imposed by Section 4999 of the Code,
then Employee's  severance benefits under Section 4(a)(i), as applicable,  shall
be payable to the extent such payment,  after taking into account the applicable
federal,  state and local  income  taxes and the excise  tax  imposed by Section
4999,  results in the receipt by Employee on an after-tax basis, of the greatest
amount of severance benefits under Section 4(a)(i),  notwithstanding that all or
some portion of such severance benefits may be taxable under Section 4999 of the
Code.  Unless  the  Company  and  Employee  otherwise  agree  in  writing,   any
determination  required  under  this  Section  shall be made in  writing  by the
Company's independent public accountants (the "Accountant"), whose determination
shall be conclusive  and binding upon Employee and the Company for all purposes.
For the  purposes  of  making  calculation  required  by  this  Section  5,  the
Accountants  may  make  reasonable  assumptions  and  approximations  concerning
applicable  taxes  and may  relay  on  reasonable,  good  faith  interpretations
concerning  the  application  of Sections 280G and 4999 of the Code. The Company
and Employee shall furnish to the Accountants  such information and documents as
the  Accountants may reasonably  request in order to make a determination  under
this Section.  The Company shall bear all costs the  Accountant  may  reasonably
incur in connection with any calculations contemplated by this Section.

      6. Confidential Information.

            (a) Company  Information.  Employee  agrees at all times  during the
term of Employee's  employment and thereafter,  to hold in strictest confidence,
and not to use,  except for the  benefit of the  Company,  or to disclose to any
person,  firm or corporation  without written  authorization  of the Board,  any
Confidential Information of the Company. Employee understands that "Confidential
Information"  means  any  Company  proprietary  information,  trade  secrets  or
know-how,  including,  but not  limited  to,  market  research,  product  plans,
products, services, customer lists and customers (including, but not limited to,
customers of the Company on whom  Employee  will call),  markets,  developments,
marketing,  finances or other business information  disclosed to Employee by the
Company  either  directly or  indirectly  in  writing,  orally or by drawings or
observation  of  parts  or  equipment.   Employee   further   understands   that
Confidential  Information  does not include any of the foregoing  items which is
based on either  Employee's prior knowledge or the experience of Employee or has
become  publicly known and made generally  available  through no wrongful act of
Employee or of others who were under confidentiality  obligations as to the item
or items involved.

            (b) Third Party  Information.  Employee  recognizes that the Company
has  received  and  in  the  future  will  receive  from  third   parties  their
confidential or proprietary  information subject to a duty on the Company's part
to  maintain  the  confidentiality  of such  information  and to use it only for
certain  limited  purposes.  Employee  agrees to hold all such  confidential  or
proprietary  information  in the strictest  confidence and not to disclose it to
any person, firm or corporation or to use it except as necessary in carrying out
Employee's  work for the Company  consistent  with the Company's  agreement with
such third party.
<PAGE>

                                                                   EXHIBIT 10.16

      7. Covenant Not to Solicit.

            (a) Until one year after  termination of Employee's  employment with
the Company for any reason,  Employee agrees that he shall not solicit,  induce,
attempt to hire,  recruit,  encourage,  take away,  or hire any  employee of the
Company or cause an employee to leave his or her employment  either for Employee
or for any other entity or person.

            (b) Employee  represents  that he (i) is familiar with the foregoing
covenant not to solicit,  and (ii) is fully aware of his obligations  hereunder,
including,  without  limitation,  the  reasonableness  of the length of time and
scope of this covenant.

      8. Definition of Terms.  The following terms referred to in this Agreement
shall have the following meanings:

            (a) Change of Control. "Change of Control" shall mean the occurrence
of any of the following events occurring on or after the date hereof:

                  (i) Any "person"  (as such term is used in Sections  13(d) and
14(d) of the Securities  Exchange Act of 1934, as amended (the "Exchange  Act"))
is or  becomes  the  "beneficial  owner" (as  defined  in Rule  13d-3  under the
Exchange Act), directly or indirectly, of securities of the Company representing
30% or  more  of the  total  voting  power  represented  by the  Company's  then
outstanding  voting  securities;  provided,  however,  that  an  initial  public
offering of the Company's Common Stock shall not constitute a Change of Control;
or

            (ii) A change in the  composition  of the Board  occurring  within a
two-year period, as a result of which fewer than a majority of the directors are
Incumbent Directors.  "Incumbent  Directors" shall mean directors who either (A)
are  directors  of the Company as of the date  hereof,  or (B) are  elected,  or
nominated for election,  to the Board with the  affirmative  votes of at least a
majority of the  Incumbent  Directors at the time of such election or nomination
(but  shall not  include  an  individual  whose  election  or  nomination  is in
connection with an actual or threatened  proxy contest  relating to the election
of directors to the Company); or

            (iii)  The   stockholders   of  the  Company  approve  a  merger  or
consolidation of the Company with any other corporation,  other than a merger or
consolidation  which  would  result  in the  voting  securities  of the  Company
outstanding  immediately  prior  thereto  continuing  to  represent  (either  by
remaining  outstanding  or by being  converted  into  voting  securities  of the
surviving  entity)  at least  fifty  percent  (50%) of the  total  voting  power
represented  by the voting  securities of the Company or such  surviving  entity
outstanding   immediately  after  such  a  merger  or   consolidation,   or  the
stockholders  of the  Company  approve  a plan of  complete  liquidation  of the
Company or an  agreement  for the sale or  disposition  by the Company of all or
substantially all the Company's assets.
<PAGE>

                                                                   EXHIBIT 10.16

            (b) Involuntary Termination.  "Involuntary  Termination" shall mean,
without  Employee's  express  written  consent,  (i) a significant  reduction of
Employee's duties, position or responsibilities, or the removal of Employee from
such  position  and  responsibilities,   unless  Employee  is  provided  with  a
comparable position (i.e., a position of equal or greater  organizational level,
duties, authority,  compensation and status), provided, however, that Employee's
acceptance of any other position with the Company, or any successor,  in lieu of
Employee's  current position with the Company shall not be deemed to be a waiver
of  Employee's  rights under this  Agreement and Employee  shall  continue to be
entitled to all rights under this Agreement as long as Employee remains employed
by the Company,  or any successor;  (ii) a substantial  reduction,  without good
business reasons, of the facilities and perquisites  (including office space and
location)  available to Employee  immediately  prior to such reduction;  (iii) a
reduction  by the  Company in the Base  Compensation  of  Employee  as in effect
immediately prior to such reduction, other than a reduction which is part of and
generally  consistent with a general reduction of comparable  employee salaries;
(iv) a  material  reduction  by the  Company  in the kind or  level of  employee
benefits to which Employee is entitled  immediately prior to such reduction with
the result that Employee's  overall benefits  package is significantly  reduced,
other than a reduction which is part of and generally  consistent with a general
reduction  of  comparable  employee  benefit  packages;  (v) the  relocation  of
Employee to a facility  or a location  more than 25 miles from  Employee's  then
present location, without Employee's express written consent; (vi) any purported
termination  of  Employee  by the  Company  which  is not  affected  for  death,
Disability  or  Cause;  or (vii)  the  failure  of the  Company  to  obtain  the
assumption of this agreement by any successors contemplated in Section 9 below.

            (c) Cause.  "Cause"  shall mean (i) any act of  personal  dishonesty
taken by Employee in  connection  with his  responsibilities  as an employee and
intended to result in  substantial  personal  enrichment  of Employee,  (ii) the
conviction  of a felony which the Board  reasonably  believes had or will have a
material detrimental effect on the Company's reputation or business, and (iii) a
willful  act by  Employee  which  constitutes  gross  misconduct  and  which  is
injurious to the Company.

            (d)  Disability.  "Disability"  shall  mean that  Employee  has been
unable  to  perform  his  duties  under  this  Agreement  as the  result  of his
incapacity due to physical or mental illness,  and such  inability,  at least 26
weeks after its  commencement,  is  determined  to be total and  permanent  by a
physician  selected by the Company or its insurers and acceptable to Employee or
Employee's legal  representative  (such Agreement as to acceptability  not to be
unreasonably  withheld).  Termination  resulting  from  Disability  may  only be
effected  after at least 30 days'  written by the  Company of its  intention  to
terminate  Employee's  employment.  In  the  event  that  Employee  resumes  the
performance of substantially  all of his duties hereunder before the termination
of his employment  becomes  effective,  the notice of intent to terminate  shall
automatically be deemed to have been revoked.
<PAGE>

                                                                   EXHIBIT 10.16

            (e)  Termination  Date.  "Termination  Date"  shall mean (i) if this
Agreement is  terminated by the Company for  Disability,  thirty (30) days after
notice of  termination  is given to Employee  (provided  that Employee shall not
have  returned to the  performance  of  Employee's  duties on a full-time  basis
during such thirty (30) day period), (ii) if Employee's employment is terminated
by the Company for any other reason,  the date on which a notice of  termination
is given or such other date specified in the notice of termination,  or (iii) if
the Agreement is terminated by Employee, the date on which Employee delivers the
notice of termination to the Company.

      9. Successors.

            (a)  Company's  Successors.  Any  successor to the Company  (whether
direct or  indirect  and  whether by  purchase,  lease,  merger,  consolidation,
liquidation or otherwise) to all or substantially all of the Company's  business
and/or  assets  shall  assume the  obligations  under this  Agreement  and agree
expressly to perform the obligations under this Agreement in the same manner and
to the same extent as the Company would be required to perform such  obligations
in the absence of a succession.  For all purposes under this Agreement, the term
"Company"  shall include any successor to the Company's  business  and/or assets
which executes and delivers the assumption  agreement  described in this Section
or which becomes bound by the terms of this Agreement by operation of law.

            (b)  Employee's  Successors.  The  terms of this  Agreement  and all
rights of Employee  hereunder  shall inure to the benefit of, and be enforceable
by, Employee's  personal or legal  representatives,  executors,  administrators,
successors, heirs, distributees, devisees and legatees.

      10.  Returning  Company  Documents.  Employee  agrees that, at the time of
leaving the employ of the  Company,  Employee  will  deliver to the Company (and
will not keep in Employee's possession,  recreate or deliver to anyone else) any
and  all   devices,   records,   data,   notes,   reports,   proposals,   lists,
correspondence,   specifications,   materials,  equipment,  other  documents  or
property,  or  reproductions of any  aforementioned  items developed by Employee
pursuant to Employee's employment with the Company or otherwise belonging to the
Company, its successors or assigns.

      11. Notice.

            (a) General.  Notices and all other  communications  contemplated by
this  Agreement  shall be in writing and shall be deemed to have been duly given
when personally  delivered or when mailed by U.S.  registered or certified mail,
return receipt  requested and postage prepaid.  In the case of Employee,  mailed
notices  shall be addressed to him at the home  address  which he most  recently
communicated  to the  Company in  writing.  In the case of the  Company,  mailed
notices shall be addressed to its corporate headquarters,  and all notices shall
be delivered to the attention of its Secretary.
<PAGE>

                                                                   EXHIBIT 10.16

            (b) Notice of Termination.  Any termination by the Company for Cause
or by  Employee  as a  result  of a  voluntary  resignation  or  an  Involuntary
Termination  shall be communicated by a notice of termination to the other party
hereto given in accordance with this Section.  Such notice shall  indicate,  the
specific termination provision in this Agreement relied upon, shall be set forth
in reasonable detail the facts and circumstances  claimed to provide a basis for
termination under the provision so indicated,  and shall specify the termination
date (which shall be not more than 30 days after the giving of such notice). The
failure by  Employee  to include  in the notice any fact or  circumstance  which
contributes to a showing of Involuntary Termination shall not waive any right of
Employee hereunder or preclude Employee from asserting such fact or circumstance
in enforcing his right hereunder.

      12. Mediation; Arbitration.

            (a)  Mediation.  Employee  agrees  that any  dispute or  controversy
arising  out of,  relating  to, or in  connection  with this  Agreement,  or the
interpretation,  validity,  construction,  performance,  breach  or  termination
thereof, shall first be submitted to mediation. The mediation shall be conducted
within 45 days of  either  party  notifying  the  other  party of a  dispute  or
controversy regarding this Agreement or Employee's employment  relationship with
the  Company.  Unless  otherwise  provided  for by law, the Company and Employee
shall each pay half the costs and expenses of the mediation.

            (b) Arbitration.  In the event mediation  pursuant to subsection (a)
above fails,  Employee  agrees that any dispute or  controversy  arising out of,
relating  to, or in  connection  with  this  Agreement,  or the  interpretation,
validity,  construction,  or breach thereof, shall be finally settled by binding
arbitration to be held in San Jose,  California under the National Rules for the
Resolution of Employment  Disputes  supplemented by the Supplemental  Procedures
for Large Complex Disputes,  of the American Arbitration  Association as then in
effect (the "Rules").  The arbitrator may grant  injunctions or other  equitable
relief in such dispute or controversy.  The decision of the arbitrator  shall be
final, conclusive and binding on the parties to the arbitration. Judgment may be
entered on the arbitrator's decision in any court having jurisdiction.

            (c) The  arbitrator(s)  shall apply  California law to the merits of
any  dispute or claim,  without  reference  to rules of  conflicts  of law.  The
arbitration proceedings shall be governed by the Rules.

            (d) Unless  otherwise  provided for by law, the Company and Employee
shall each pay half of the costs and expenses of such arbitration.
<PAGE>

                                                                   EXHIBIT 10.16

            (e) The  arbitrator  shall be selected as follows:  in the event the
Company and Employee agree on one arbitrator, the arbitration shall be conducted
by such  arbitrator.  In the event the Company and Employee do not do agree, the
Company and Employee shall each select one independent, qualified arbitrator and
the two arbitrators so selected shall select the third  arbitrator.  The Company
reserves the right to object to any individual  arbitrator who shall be employed
by or affiliated with a competing organization.

            (f) At the request of either party,  arbitration proceedings will be
conducted  in the utmost  secrecy;  in such case all  documents,  testimony  and
records shall be received,  heard and  maintained by the  arbitrators in secrecy
under seal,  available  for the  inspection  only of the Company or Employee and
their  respective  attorneys  and their  respective  experts  who shall agree in
advance and in writing to receive  all such  information  confidentially  and to
maintain  such  information  in secrecy  until  such  information  shall  become
generally known.

            (g) The decree or judgment of an award  rendered by the  arbitrators
maybe entered in any court having jurisdiction thereof.

            (h) Reasonable  notice of the time and place of arbitration shall be
given to all persons,  other than the  parties,  as shall be required by law, in
which case such persons or those authorized representatives shall have the right
to attend and/or  participate in all the arbitration  hearings in such manner as
the law shall require.

            (i) EMPLOYEE HAS READ AND UNDERSTANDS THIS SECTION,  WHICH DISCUSSES
ARBITRATION.  EMPLOYEE  UNDERSTANDS  THAT BY SIGNING  THIS  AGREEMENT,  EMPLOYEE
AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF,  RELATING TO, OR IN CONNECTION  WITH
THIS EMPLOYMENT AGREEMENT,  OR THE INTERPRETATION,  VALIDITY,  CONSTRUCTION,  OR
BREACH  THEREOF  TO  BINDING  ARBITRATION,  AND  THAT  THIS  ARBITRATION  CLAUSE
CONSTITUTES  A WAIVER OF  EMPLOYEE'S  RIGHT TO A JURY  TRIAL AS TO THESE  ISSUES
ONLY.

      13. Miscellaneous Provisions.

            (a) No Duty to Mitigate.  Employee shall not be required to mitigate
the amount of any payment  contemplated  by this  Agreement,  nor shall any such
payment be reduced by any  earnings  that  Employee  may receive  from any other
source.

            (b) Waiver. No provision of this Agreement shall be modified, waived
or  discharged  unless the  modification,  waiver or  discharge  is agreed to in
writing  and signed by  Employee  and by an  authorized  officer of the  Company
(other  than  Employee).  No  waiver  by either  party of any  breach  of, or of
compliance with, any condition or provision of this Agreement by the other party
shall be considered a waiver of any other  condition or provision or of the same
condition or provision at another time.
<PAGE>

                                                                   EXHIBIT 10.16

            (c) Whole Agreement. No agreements, representation or understandings
(whether oral or written and whether express or implied) which are not expressly
set forth in this  Agreement have been made or entered into by either party with
respect to the subject matter hereof.

            (d) Choice of Law. The validity,  interpretation,  construction  and
performance  of this  Agreement  shall be  governed  by the laws of the State of
California.

            (e)  Severability.   The  invalidity  or   unenforceability  of  any
provision  or  provisions  of this  Agreement  shall not affect the  validity or
enforceability of any other provision  hereof,  which shall remain in full force
and effect.

            (f) No Assignment of Benefits.  The rights of any person to payments
or  benefits  under  this  Agreement  shall  not be made  subject  to  option or
assignment,  either by voluntary or  involuntary  assignment  or by operation of
law, including (without limitation) bankruptcy, garnishment, attachment or other
creditor's process, and any action in violation of this Section shall be void.

            (g) Employment  Taxes.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.
<PAGE>

                                                                   EXHIBIT 10.16

            (h)  Assignment by Company.  The Company may assign its rights under
this  Agreement to an  affiliate,  and an affiliate  may assign its rights under
this agreement to another affiliate of the Company or to the Company;  provided,
however,  that no  assignment  shall be made if the net worth of the assignee is
less than the net worth of the  Company  at the time of the  assignment.  In the
event of any such assignment,  the term "Company" when used in a section of this
Agreement shall mean the corporation that actually employs Employee.

            (i)  Amendments.  This Agreement shall not be changed or modified in
whole or in part except by an instrument in writing signed by each party hereto.

            (j)  Counterparts.  This Agreement may be executed in  counterparts,
each of which  shall be  deemed  an  original,  but all of which  together  will
constitute one and the same instrument.

            (k)  Effect  of  Headings.  The  section  headings  herein  are  for
convenience only and shall not affect the construction or interpretation of this
Agreement.

            (l) Restatement of Prior Agreement.  The parties hereto  acknowledge
that this  Agreement  amends and  restates  that  certain  Employment  Agreement
between  the Company  and  Employee  dated as of March 1, 1997 and as amended on
February 23, 2000, June 29, 2001,  October 11, 2001,  April 21, 2003 and July 6,
2004.

                                     ******

      IN WITNESS  WHEREOF,  each of the parties has executed this Agreement,  in
the case of the Company by its duly authorized  officer,  as of the day and year
first above written.

COMPANY                                    NOTIFY TECHNOLOGY CORPORATION

                                           By:    /s/ David Brewer
                                                  ------------------------------
                                           Title: Director
                                                  ------------------------------
                                           Date:  October 30, 2007
                                                  ------------------------------

EMPLOYEE                                   /s/ Paul F. DePond
                                           -------------------------------------
                                           Paul DePond

                                           Date:  October 30, 2007
                                                  ------------------------------

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