Document:

Exhibit 10.12

                       SETTLEMENT AGREEMENT BY AND BETWEEN
                       -----------------------------------

                      FIRST INDIANA BANK, N.A. AND METABANK
                      -------------------------------------

         This Settlement Agreement (the "Agreement"),  dated as of this 13th day
of March,  2006, is entered into by and between FIRST INDIANA BANK, N.A. ("FIB")
on the one hand,  and METABANK  f/k/a First  Federal  Savings Bank - Sioux Falls
("MetaBank") on the other hand.

                                    RECITALS

         WHEREAS,  on October 1, 2004, FIB and MetaBank executed a Participation
Certificate and Agreement (the "Participation  Agreement") whereby FIB agreed to
purchase a participation  in a certain  $20,000,000.00  revolving draw loan (the
"Loan"),   made  by  MetaBank  to  South  Dakota  Acceptance   Corporation  (the
"Borrower");

         WHEREAS,  the Borrower  filed its  petition  for Chapter 11  bankruptcy
relief in the United States Bankruptcy Court for the District of South Dakota on
June 20, 2005 (the  "Bankruptcy"),  which  constituted an event of default under
the terms and conditions of the Loan;

         WHEREAS,   as  of  the   Bankruptcy,   the  total  Loan   balance   was
$16,926,225.84,  and  FIB's  share of the Loan was  $6,000,000.00,  which  share
constituted 35.45% of the total outstanding Loan balance;

         WHEREAS,  a dispute  has  arisen  among the  parties  as to  MetaBank's
liability  to FIB for  allowing  FIB's share of the Loan to exceed 30 percent of
the Loan (the "Discrepancy"); and

         WHEREAS, the parties agree that it is in their mutual best interests to
resolve fully and finally their disputes, claims and controversies.

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

                                    AGREEMENT

         1. The above-stated Recitals are hereby incorporated and made a part of
this Agreement as if fully restated herein.

         2.  Contemporaneously  with the execution and delivery of the Agreement
by all parties, MetaBank shall pay to FIB a lump sum payment of $461,000.00 (the
"Settlement Payment"), and FIB shall convey to MetaBank 2.724 percent (%) of the
Loan, so that FIB's  undivided  interest in the Loan shall equal 32.722  percent
(%) of the total Loan balance, or $5,539,000.00. MetaBank's interest in the Loan
will increase by $461,000.00.

         3. Upon  receipt  of the  Settlement  Payment  by FIB,  FIB  agrees for
itself, its respective successors,  heirs, executors,  estates,  administrators,
representatives,  attorneys,  agents,  and assigns,  and hereby does release and
forever  discharge  MetaBank,  and any of its past,  present and future parents,
subsidiaries,   and  affiliates,  and  their  respective  officers,   directors,
shareholders,   agents,   servants,   employees,   attorneys,   representatives,
predecessors,  successors,  and assigns (the "MetaBank Release Group"), from any
and  all  claims,  demands,   damages,   rights,  duties,  debts,   obligations,
liabilities,  actions  or  petitions  of any  kind,  whether  known or  unknown,
foreseen or unforeseen,  contingent,  actual, liquidated, or unliquidated,  from
the  beginning  of the world to the date of this  Agreement,  including  without
limitation  any of the  foregoing  arising  out of or related  to the Loan,  the
Discrepancy,  the Bankruptcy or the Participation Agreement,  provided, however,
that in the  event  any

                                       32
<PAGE>

person or entity in the MetaBank  Release Group is  subsequently  charged with a
felony  that  involves  or  relates  to  the  Loan,   the   Discrepancy  or  the
Participation  Agreement  and  subsequently  (i)  enters a plea of no contest or
guilty,  or (ii) is  otherwise  convicted  of the crime or any  lesser  included
felony,  the foregoing release shall be null and void and of no effect, but only
to the extent of the loss or damage  caused to FIB by the  conduct  constituting
the felony.

         4. Upon  payment to MetaBank by FIB as set forth in  paragraph 5 below,
MetaBank  agrees  for  itself,  its  respective  successors,  heirs,  executors,
estates,  administrators,  representatives,  attorneys, agents, and assigns, and
hereby does,  release,  and forever discharge FIB, and any of its past,  present
and future parents, subsidiaries, and affiliates, and their respective officers,
directors,     shareholders,    agents,    servants,    employees,    attorneys,
representatives,   predecessors,  successors,  and  assigns  (the  "FIB  Release
Group"),  from any and all claims,  demands,  damages,  rights,  duties,  debts,
obligations,  liabilities,  actions or petitions of any kind,  whether  known or
unknown,   foreseen  or   unforeseen,   contingent,   actual,   liquidated,   or
unliquidated,  from the  beginning  of the world to the date of this  Agreement,
including  without  limitation any of the foregoing arising out of or related to
the Loan, the  Discrepancy,  the  Bankruptcy,  or the  Participation  Agreement,
provided,  however,  that in the  event  that any  person  or  entity in the FIB
Release Group is subsequently  charged with a felony that involves or relates to
the Loan, the Discrepancy or the  Participation  Agreement and  subsequently (i)
enters a plea of no contest or guilty,  or (ii) is  otherwise  convicted  of the
crime or any lesser  included  felony,  the foregoing  release shall be null and
void and of no effect,  but only to the  extent of the loss or damage  caused to
MetaBank by the conduct constituting the felony.

         5. FIB and  MetaBank  acknowledge  that,  pursuant  to the terms of the
participation  agreement  concerning the ----------------------  Obligation (the
"Obligation"), FIB shall pay to MetaBank the sum of $2,423,049.87,  representing
MetaBank's full and entire  interest in the Obligation,  by wire transfer within
three (3) calendar days  following  the execution of this  Agreement by MetaBank
and its delivery to FIB.

         6. FIB  acknowledges  that, in exchange for receiving from MetaBank the
Settlement  Payment  representing  2.724 percent of the Loan, FIB hereby conveys
and assigns to MetaBank:  (a) all  accompanying  rights  formerly held by FIB in
connection with that Loan percentage, including but not limited to (i) the right
to pursue  other  parties for  losses,  and (ii) the right to all  proceeds  and
associated  recoveries,  no matter when  received or by who,  including  but not
limited to proceeds from the sale of contracts,  insurance  recoveries,  and any
and all other  payments or recoveries  that would be receivable by the holder of
the 2.724  percent of the Loan,  except for any interest  payments that may have
been  received by FIB from the Borrower on account of this 2.724  percent of the
Loan prior to the Borrower's bankruptcy filing on June 20, 2005; (b) any and all
claims against the Borrower or relating to transactions  with the Borrower;  and
(c) any and all rights it has against any other participant banks, including but
not limited to ---------------------------------.

         7. (a) The parties agree that they will keep  confidential the terms of
this  Agreement,  will not disclose the terms of the same,  and will cause their
respective officers, directors,  employees,  representatives,  agents, attorneys
and advisors not to disclose and to keep  confidential  the terms and conditions
of  this  Agreement  except  to  the  extent  required  by  (i)  law,  including
requirements  arising under the Securities  Exchange Act of 1934, as amended, or
(ii) by Court  process,  order,  subpoena  or  enforcement  proceedings  ("Court
Documents").

                                       33
<PAGE>

                  (b) In the event either party is served ("Served  Party") with
Court Documents (as defined in 7(a)(ii) above) requesting  information  relating
to the Agreement, the Served Party shall immediately forward a copy of the Court
Documents to the other party  ("Non-Served  Party") by Federal  Express.  In the
event the Non-Served  Party intends to object to disclosure of this Agreement or
its  terms  pursuant  to  the  Court  Documents,   the  Non-Served  Party  shall
immediately  (1) advise the Served Party of same; and (2) timely bring a motion,
action or other appropriate proceeding ("Motion") relating to the objection,  at
its sole  cost  and  expense  (including  attorneys'  fees.)  In the  event  the
Non-Served  Party  fails to advise on a timely  basis the  Served  Party that it
wishes to object to compliance with the Court Documents,  and/or fails to timely
bring on a Motion, then in that event the Served Party may comply with the Court
Documents.

                  (c) In the event the Agreement  and/or its terms are disclosed
pursuant  to 6(a) or (b),  the  parties  shall  have no further  obligations  to
maintain the confidentiality of the Agreement.

         8.  The  parties  acknowledge  and  represent  they  are  independently
represented  by counsel and have had the  opportunity to consult with counsel of
their choice prior to entering  into this  Agreement.  This  Agreement  has been
negotiated  by the  parties  hereto at arms  length  and shall not be  construed
against either party as the drafter. Each of the parties hereto acknowledges and
represents  that it is entering into this Agreement  freely and  voluntarily and
with the advice and consent of legal counsel.

         9. This  Agreement  is being  entered  into for the express  purpose of
making and entering into a full and final compromise,  adjustment and settlement
by and between MetaBank and FIB with regard to the subject matter hereof without
regard to the subsequent discovery or existence of different or additional facts
or events.

         10. This  Agreement  does not in any manner  constitute an admission of
liability or fault  whatsoever  by either  party.  The parties have entered into
this Agreement in order to avoid further expense,  inconvenience,  and delay and
to dispose of potentially expensive burdensome and protracted litigation.

         11.  This  Agreement  embodies  the entire  understanding  between  the
parties  with  respect to the  subject  matter  hereof and may be varied only by
subsequent written agreement signed by the parties. No representation,  promise,
inducement,  or statement  of  intentions  has been made by the parties  hereto,
which is not embodied in this Agreement.

         12. In the event of future litigation relating to this Agreement or any
provision of this Agreement,  the prevailing  party shall be entitled to recover
its  costs,   expenses  and  reasonable   attorney's  fees  (including  in-house
attorneys'  fees)  incurred  in the  enforcement  of this  Agreement,  including
enforcing the Agreement as a defense.

         13. This  Agreement  shall be construed and  interpreted  in accordance
with and governed by the laws of the State of Indiana  without  giving effect to
the  provisions,  policies or  principals  thereof  relating to choice of law or
conflict of law.

         14. Each party signing this  Agreement  represents and warrants to each
of the parties  that he or she is duly and fully  authorized  and  empowered  to
enter into and execute this  Agreement,  and that this  Agreement and all of its
terms are binding commitments of the party on whose behalf he or she purports to
act.

         15. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original, and all such counterparts together shall constitute
one of the same Agreement. A telecopy or facsimile signature shall be equivalent
to and binding as one original signature.

                                       34
<PAGE>

         AGREED AS OF THE DATE SET FORTH ABOVE.

                                                FIRST INDIANA BANK, N.A.

Dated:   March 13, 2006                         By:    /s/ Julie Fallon Hughes
         --------------                                -----------------------
                                                         First Vice President

                                                METABANK

Dated:   March 13, 2006                         By:    /s/ J. Tyler Haahr
         --------------                                -------------------
                                                         President and
                                                         Chief Executive Officer

                                       35EX-10.1

OLSWANG  90 High Holborn   T +44 (0) 20 7067 3000   Regulated by the Law Society
         London WC1V 6XX   F +44 (0) 20 7067 3999
         www.olswang.com   DX 37972 Kingsway

                                                                            2006

PLACING AGREEMENT

(1) TURBOTEC PRODUCTS PLC
(2) EXECUTIVE DIRECTORS
(3) NON-EXECUTIVE DIRECTOR
(4) THERMODYNETICS, INC.
(5) DAWNAY, DAY CORPORATE FINANCE LIMITED
(6) DAWNAY, DAY CAPITAL MARKETS

<PAGE>

Contents

CLAUSE                                                                      PAGE

1.       DEFINITIONS AND INTERPRETATION________________________________________2

2.       APPOINTMENTS__________________________________________________________7

3.       APPLICATION FOR ADMISSION_____________________________________________8

4.       CONDITIONS____________________________________________________________8

5.       DELIVERY AND RELEASE OF DOCUMENTS____________________________________10

6.       ANNOUNCEMENTS________________________________________________________10

7.       SUPPLEMENTARY ADMISSION DOCUMENTS____________________________________11

8.       THE SUBSCRIPTION SHARES______________________________________________12

9.       THE SALE SHARES______________________________________________________12

10.      PLACING______________________________________________________________15

11.      SETTLEMENT AND REGISTRATION__________________________________________15

12.      COMMISSIONS, FEES AND EXPENSES_______________________________________16

13.      VAT__________________________________________________________________17

14.      REPRESENTATIONS AND WARRANTIES_______________________________________17

15.      EXCLUSION OF DDCF'S AND DDCM'S LIABILITY AND INDEMNITY_______________17

16.      LIMITS ON LIABILITY__________________________________________________17

17.      TERMINATION__________________________________________________________17

18.      SERVICE AGREEMENTS___________________________________________________17

19.      CONTINUING OBLIGATIONS_______________________________________________17

20.      UNDERTAKINGS WITH RESPECT TO SHARES__________________________________17

21.      THIRD PARTY RIGHTS___________________________________________________17

22.      TIME OF THE ESSENCE__________________________________________________17

23.      NOTICES______________________________________________________________17

24.      FURTHER ASSURANCE____________________________________________________17

25.      AMENDMENTS___________________________________________________________17

26.      WAIVERS AND REMEDIES_________________________________________________17

27.      ASSIGNMENT___________________________________________________________17

<PAGE>

28.      ENTIRE AGREEMENT_____________________________________________________17

29.      GOVERNING LAW AND JURISDICTION_______________________________________17

30.      EXCLUSION OF CLIENT RELATIONSHIP_____________________________________17

31.      EXECUTION____________________________________________________________17

SCHEDULE 1
         The Directors
         PART I:  The Executive Directors_____________________________________17
         PART II:  The Non-executive Director_________________________________17

SCHEDULE 2
         Warranties
         PART I_______________________________________________________________17
         PART II______________________________________________________________17
         PART III_____________________________________________________________17

SCHEDULE 3
         Certificate under Clause 4.2.6_______________________________________17

SCHEDULE 4
         Documents to be Delivered to DDCF____________________________________17

<PAGE>

THIS AGREEMENT is made on                                                   2006

BETWEEN:

(1)      TURBOTEC  PRODUCTS  PLC a company  incorporated  in  England  and Wales
         (Company  No.  5593339),  whose  registered  office  is at  c/o  Capita
         Registrars,  The Registry, 34 Beckenham Road, Beckenham,  Kent, BR3 4TU
         (the "COMPANY");

(2)      The several  persons whose names and business  addresses are set out in
         Part I of schedule 1 (each an "EXECUTIVE DIRECTOR" and collectively the
         "EXECUTIVE DIRECTORS");

(3)      The  person  whose name and  business  address is set out in Part II of
         schedule 1 (the "NON-EXECUTIVE DIRECTOR");

(4)      THERMODYNETICS,  INC. a company  incorporated  in the state of Delaware
         under the Delaware  General  Corporation  Law whose  principal place of
         business is at 651 Day Hill Road, Windsor,  Connecticut 06095-1714, USA
         ("TDYT");

(5)      DAWNAY,  DAY CORPORATE  FINANCE  LIMITED  (Company No.  1154048)  whose
         registered office is at 15 Grosvenor Gardens, London SW1W 0BD ("DDCF");
         and

(6)      DAWNAY,  DAY CAPITAL MARKETS a division of DAWNAY,  DAY BROKERS LIMITED
         (Company  No.  4397988)  whose  registered  office  is at 15  Grosvenor
         Gardens, London SW1W 0BD ("DDCM").

RECITALS:

(A)      The Company is a public company limited by shares.

(B)      At the date of this  agreement  the  authorised  share  capital  of the
         Company is (pound)200,000 divided into 20,000,000 ordinary shares of 1p
         each of which 10,009,590 ordinary shares are in issue.

(C)      In reliance on the various  representations,  warranties,  undertakings
         and indemnities  set out in this  agreement,  DDCF has agreed to act as
         nominated  adviser in connection with the application for Admission and
         the Placing.

(D)      In reliance on the various  representations,  warranties,  undertakings
         and indemnities  set out in this  agreement,  DDCM has agreed to act as
         broker in connection with the Placing.

(E)      The Company proposes to seek  subscribers for the  Subscription  Shares
         and TDYT proposes to sell the Sale Shares.

(F)      On the terms and subject to the conditions  contained in this agreement
         DDCM has agreed:

         (1)      as agent for the Company to use its  reasonable  endeavours to
                  procure subscribers for the Subscription Shares; and

                                       1
<PAGE>

         (2)      as agent for TDYT, to use its reasonable endeavours to procure
                  purchasers for the Sale Shares.

IT IS AGREED as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      In this  agreement the following  expressions  shall have the following
         meanings (except where the context otherwise requires):

         "ACT"                          the Companies Act 1985;

         "ADMISSION"                    admission  of the  whole  of  the  share
                                        capital of the Company, issued and to be
                                        issued in  connection  with the Placing,
                                        to  trading  on AIM  and  references  to
                                        Admission  becoming  effective are to be
                                        construed in  accordance  with Rule 6 of
                                        the AIM Rules;

         "ADMISSION DOCUMENT"           the  document  in the agreed  form to be
                                        published  by the Company  under the AIM
                                        Rules;

         "ADVERSE INTEREST"             any claim, equity, lien, charge,  trust,
                                        encumbrance  or other  adverse  right or
                                        interest of any kind;

         "ACCOUNTS DATE"                31 March 2005;

         "AIM"                          AIM,  a  market  of  the  London   Stock
                                        Exchange;

         "AIM RULES"                    the  AIM   Rules   for   companies   and
                                        nominated   advisers  published  by  the
                                        London Stock Exchange;

         "ANNOUNCEMENT DATE"            the   date   of   publication   of   the
                                        preliminary  announcement of the results
                                        of the Company for the financial  period
                                        ending on 31 December 2006;

         "ARTICLES OF ASSOCIATION"      the articles of  association  adopted by
                                        the  Company  by  a  written  resolution
                                        dated 8 April 2006;

         "BOARD"                        the board of  directors  of the  Company
                                        from  time to time or a duly  authorised
                                        committee of it;

         "BUSINESS DAY"                 a day (not being a  Saturday  or Sunday)
                                        on which  banks in  London  are open for
                                        general business;

         "CITIZENS BANK"                Citizens Bank of Massachusetts;

         "CITY CODE"                    the City Code on Take-overs  and Mergers
                                        issued  by the Panel on  Take-overs  and
                                        Mergers;

                                       2
<PAGE>

         "COMMENCEMENT OF DEALINGS"     commencement of dealings in the Ordinary
                                        Shares on AIM;

         "CONDITIONS"                   each  of  the   conditions  set  out  in
                                        clauses 4.1 and 4.2;

         "CREST"                        the  system  enabling  securities  to be
                                        held and  transferred in  dematerialised
                                        form operated by CRESTCo;

         "CREST ACCOUNT"                a securities account held within CREST;

         "CRESTCO"                      CRESTCo Limited;

         "CREST REGULATIONS"            the      Uncertificated       Securities
                                        Regulations 2001;

         "CREST RULES"                  the rules made by CRESTCo  with  respect
                                        to CREST;

         "DIRECTORS"                    the directors of the Company whose names
                                        are set out in schedule 1;

         "DUE DILIGENCE REPORTS"        the legal due  diligence  reports on (i)
                                        Turbotec  Products,  Inc. dated 28 April
                                        2006  prepared by Seyfarth  Shaw LLP and
                                        (ii) on the Company  dated 28 April 2006
                                        prepared  by  Nabarro  Nathanson,   each
                                        addressed to the Company, DDCM and DDCF;

         "ENCUMBRANCE"                  a  mortgage,   charge,   pledge,   lien,
                                        option,  restriction,   right  of  first
                                        refusal,  right of  pre-emption or other
                                        third party right,  interest or claim of
                                        any kind,  or any other  encumbrance  or
                                        security    interest    of   any    kind
                                        (including,   without  limitation,   any
                                        liability  imposed or right conferred by
                                        or under any  legislation)  or any other
                                        type   of    preferential    arrangement
                                        (including,  without limitation, a title
                                        transfer   or   retention   arrangement)
                                        having similar effect;

         "ENGAGEMENT LETTER"            the letter dated 10 March 2006 from DDCF
                                        and DDCM to the Company and TDYT setting
                                        out the  terms on which it agreed to act
                                        for the Company in  connection  with the
                                        application   for   Admission   and  the
                                        Placing;

         "FINANCIAL STATEMENTS"         the financial  statements of the Company
                                        and its  subsidiaries  as set out in the
                                        Short Form Report;

         "FSMA"                         the  Financial  Services and Markets Act
                                        2000;

                                       3
<PAGE>

         "GROUP"                        the Company  and each of its  subsidiary
                                        undertakings  and "GROUP  COMPANY" means
                                        any of them;

         "IN ALL MATERIAL RESPECTS"     in all respects  material in the context
                                        of the Placing;

         "IN ANY MATERIAL RESPECT"      in any respect  which is material in the
                                        context of the Placing;

         "INTERIM ACCOUNTS"             the   unaudited   interim   results   of
                                        Turbotec  Products,  Inc for the 9 month
                                        period ended 31 December 2005;

         "INVESTOR PRESENTATION"        the   presentation  by  the  Company  to
                                        potential Placees in the agreed form;

         "LONDON STOCK EXCHANGE"        London Stock Exchange plc;

         "LONG FORM REPORT"             the long form  report on the Group dated
                                        28 April 2006  prepared by the Reporting
                                        Accountants   and   addressed   to   the
                                        Company, DDCF and DDCM;

         "MATERIAL NEW FACTOR,          means a material new factor,  mistake or
         MISTAKE OR INACCURACY"         inaccuracy  to which the notes to Rule 3
                                        as set out in Part Two - Guidance  Notes
                                        of the AIM Rules  applies in the context
                                        of the Placing;

         "ORDINARY SHARES"              ordinary   shares  of  1p  each  in  the
                                        capital of the Company;

         "PATHFINDER  ADMISSION         the  draft  Admission  Document  dated 8
         DOCUMENT"                      April 2006;

         "PLACEE"                       a  person  whom  DDCM  procures  to take
                                        Placing Shares under the Placing;

         "PLACING"                      the placing of the Placing Shares on the
                                        basis described in this agreement;

         "PLACING DOCUMENTS"            the  Admission  Document and the Placing
                                        Letter each in the agreed form;

         "PLACING LETTER"               the   placing   letter   and   form   of
                                        confirmation  in the  agreed  form to be
                                        issued by DDCM;

         "PLACING PRICE"                the price of 85p per Placing Share;

         "PLACING SHARES"               the  Subscription  Shares  and the  Sale
                                        Shares;

                                       4
<PAGE>

         "PRE-ADMISSION ANNOUNCEMENT"   the pre-admission  announcement required
                                        to be made by the  Company  under Rule 2
                                        of the AIM Rules;

         "PRESS ANNOUNCEMENT"           the  press  announcement  in the  agreed
                                        form  supplementing  the  information in
                                        the      Pre-Admission      Announcement
                                        concerning the Placing and Admission;

         "PROTECTED PERSONS"            in   respect   of   DDCF,   any   parent
                                        undertaking   of  DDCF,  any  subsidiary
                                        undertaking  of  DDCF  or  of  any  such
                                        parent  undertaking and their respective
                                        shareholders,    directors,    officers,
                                        employees  and  agents and in respect of
                                        DDCM,  any parent  undertaking  of DDCM,
                                        any subsidiary undertaking of DDCM or of
                                        any such  parent  undertaking  and their
                                        respective   shareholders,    directors,
                                        officers,    employees    and    agents;

         "REGISTRAR"                    Capita  Registrars,   The  Registry,  34
                                        Beckenham Road, Beckenham, Kent BR3 4TU;

         "REGISTRAR'S AGREEMENT"        means the letter  agreement  issued on 6
                                        April 2006 and accepted on 21 April 2006
                                        and made between the  Registrars and the
                                        Company  pursuant  to which the  Company
                                        appointed   the   Registrars   and   the
                                        Registrars accepted such appointment;

         "REGULATION S"                 means the general rules and  regulations
                                        promulgated  under the US Securities Act
                                        with that title;

         "REORGANISATION"               the  re-registration of the Company as a
                                        public   limited    company    following
                                        completion   of   the   Share   Exchange
                                        Agreement;

         "REPORTING ACCOUNTANTS"        MRI  Moores  Rowland  LLP  of 3  Sheldon
                                        Square, London, W2 6PS;

         "SALE SHARES"                  2,797,183  Ordinary Shares to be sold by
                                        TDYT pursuant to this agreement;

         "SDRT"                         stamp duty reserve tax;

         "SHARE EXCHANGE AGREEMENT"     the  agreement for the sale and purchase
                                        of the entire  issued  share  capital of
                                        Turbotec Products, Inc. between TDYT and
                                        the Company;

                                       5
<PAGE>

         "SHORT FORM REPORTS"           the accounting  reports on the Group set
                                        out in the Admission Document;

         "STAMP DUTY"                   United Kingdom stamp duty;

         "SUBSCRIPTION SHARES"          2,797,183  new  Ordinary  Shares  to  be
                                        allotted   and  issued  to   subscribers
                                        pursuant to this agreement;

         "SUPPLEMENTARY ADMISSION       any  supplementary   admission  document
         DOCUMENT"                      published by the Company pursuant to the
                                        notes to Rule 3 as set out in Part Two -
                                        Guidance Notes of the AIM Rules which is
                                        supplementary to the Admission  Document
                                        (or   to   any   previously    published
                                        admission    document    which   is   so
                                        supplementary);

         "TAX"                          means all forms of taxation, duty, rate,
                                        impost, contribution, charge or levy (in
                                        the nature of  taxation)  imposed by any
                                        competent  taxing  body,   authority  or
                                        analogous  body in the  United  Kingdom,
                                        the   United    States   or   elsewhere,
                                        including   any   interest,   surcharge,
                                        penalty  or fine in  relation  to any of
                                        them;

         "TAX WARRANTIES"               the Warranties in paragraph 14 of Part I
                                        of schedule 2;

         "UNITED STATES"                means the United  States of America each
                                        of  its  States,   its  territories  and
                                        possessions    and   the   District   of
                                        Columbia;

         "US SECURITIES ACT"            means the United States  Securities  Act
                                        of 1933 (as amended) and all regulations
                                        made  thereunder;

         "VERIFICATION NOTES"           the  verification  notes  in the  agreed
                                        form,   including   the  copies  of  the
                                        documents   cited  in  response  to  the
                                        questions  contained  in  the  notes  in
                                        relation to the Admission Document,  the
                                        Pathfinder  Admission  Document  and the
                                        Investor Presentation;

         "VAT"                          United Kingdom value added tax;

         "WARRANTIES"                   the  representations  and warranties set
                                        out in clause 14 and schedule 2; and

         "WORKING CAPITAL REPORT"       the  cash  flow  and   working   capital
                                        projections relating to the Group in the
                                        agreed form.

1.2      The words  "subsidiary  undertaking" and "parent  undertaking" have the
         meanings given to them by section 258 of the Act.

                                       6
<PAGE>

1.3      Any reference to a person being  connected with another person is to be
         construed in accordance  with section 839 of the Income and Corporation
         Taxes Act 1988.

1.4      References  to  an  uncertificated   share  or  to  a  share  being  in
         uncertificated form shall mean a share which is or is to be recorded in
         the Operator Register of Members (as defined in the CREST Regulations),
         and any reference to a  certificated  share shall mean any share of the
         Company other than an uncertificated share.

1.5      The liabilities of each of the Directors bind their respective personal
         representatives.

1.6      Any reference to a document being in an "agreed form" is to the form of
         the  relevant   document  agreed  between  the  Company  and  DDCF  and
         initialled  by  them,  or on  their  behalf,  in each  case  with  such
         amendments as may be agreed in accordance with clause 25.

1.7      Any  phrase  introduced  by  the  terms  "including",   "include",  "in
         particular"   or  any  similar   expression   shall  be   construed  as
         illustrative and shall not limit the sense of the words preceding those
         terms.

1.8      Any reference to the awareness, knowledge, information or belief of any
         person or any similar expression shall be deemed to include a statement
         that it has been made after due and careful  enquiry  into the relevant
         subject matter.

1.9      References  to any  particular  legislation  shall  include all orders,
         regulations and subordinate  legislation  made under or with respect to
         that   legislation   and  shall  be  construed  as  referring  to  such
         legislation  as  amended  and in  force  and to any  legislation  which
         re-enacts  or  consolidates  (with or  without  modification)  any such
         legislation,  in each case prior to the date hereof. For these purposes
         "legislation"  includes  any rule,  regulation  or  requirement  of the
         London Stock Exchange,  the Financial  Services Authority and any other
         body or authority acting under the authority of any legislation.

1.10     Any reference to a time of the day is to London time.

1.11     References to recitals,  clauses and  schedules  are  references to the
         recitals,  clauses and  schedules of this  agreement  (except where the
         context otherwise requires).

1.12     The schedules  form part of this  agreement and shall have effect as if
         set out in full in the body of this agreement and any reference to this
         agreement includes the schedules.

1.13     The headings in this agreement do not affect its interpretation.

2.       APPOINTMENTS

2.1      The  Company  confirms  to DDCF  and  DDCM  that it has  appointed  the
         Registrar  to act in  connection  with the  Placing in the terms of the
         letter to be delivered to DDCF under clause 5.1 and schedule 4 and that
         such appointment has been accepted.

2.2      The Company will provide each of DDCF and DDCM and the  Registrar  with
         all authorisations and information  necessary to enable them to perform
         their respective  duties in accordance with and as contemplated by this
         agreement,  the Placing

                                       7
<PAGE>

         Documents and any other document in connection  with the Placing of the
         Subscription  Shares  and  will  authorise  the  Registrar  to  act  in
         accordance with the  instructions of any director of DDCF or DDCM or of
         any person so authorised by any such director.

3.       APPLICATION FOR ADMISSION

3.1      The Company confirms that it has authorised and instructed DDCF to make
         an  application  to the London  Stock  Exchange  for  Admission  of the
         Ordinary Shares to trading on AIM.

3.2      The Company  shall at its own expense do or procure to be done all such
         acts and things,  provide all information,  give all undertakings,  pay
         all fees and execute all such  documents as may  reasonably be required
         in connection with the applications referred to in clause 3.1.

3.3      DDCF shall give to the Company all such  assistance  as the Company may
         reasonably require in connection with the application for Admission.

4.       CONDITIONS

4.1      The obligations of DDCF and DDCM (as the case may be) under clause 10.1
         are subject to fulfilment of the following conditions by not later than
         5.00 p.m. on the date of this agreement (or such later time and/or date
         as DDCF  (having  consulted  with DDCM) and the Company  shall agree in
         writing):

         4.1.1    publication  of the  Admission  Document  in  accordance  with
                  clause 5.2; and

         4.1.2    the Company having complied with its obligations under clauses
                  2  (Appointments),  3  (Application  for  Admission)  and  5.1
                  (Delivery  and release of  Documents) to the extent that those
                  obligations  fall to be performed prior to the time previously
                  referred to in this clause 4.1.

4.2      The  obligations of DDCF and/or DDCM (as the case may be) under clauses
         8.2, 9.2 and 10.3 are subject to fulfilment of the following conditions
         by not later than 8.00 a.m.  on 15 May 2006 (or such later time  and/or
         date as DDCF (having  consulted  with DDCM) and the Company shall agree
         in writing, not being later than 30 June 2006):

         4.2.1    satisfaction  of the  conditions  set out in clause 4.1 by the
                  date and time  specified  in that  clause  (or such later time
                  and/or date as DDCF and the Company shall agree in writing);

         4.2.2    an  electronic   version  of  the  Admission   Document  being
                  submitted  to the  London  Stock  Exchange  by the  Company as
                  required  by  Rule  5 of  the  AIM  Rules  together  with  the
                  application  form for admission and the fee payable in respect
                  of the application  (with the  accompanying  declaration  from
                  DDCF  under  Rule 39 of the AIM Rules) by not later than 8 May
                  2006;

         4.2.3    the Company  complying with all other of its obligations under
                  clause 6 and the AIM Rules (in so far as such  obligations are
                  not the responsibility of DDCF

                                       8
<PAGE>

                  under this agreement) as to the  publication and  availability
                  of the Admission Document;

         4.2.4    the London Stock Exchange  having agreed to admit the Ordinary
                  Shares to trading on AIM;

         4.2.5    DDCM  having  received   Placing  Letters  from  Placees  duly
                  completed and executed in all respects  pursuant to which DDCM
                  has procured  subscribers for all the Subscription  Shares and
                  purchasers  for all the Sale  Shares and receipt of funds from
                  Placees  except where  settling on a delivery  versus  payment
                  basis;

         4.2.6    the Company  delivering  to DDCF and DDCM at close of business
                  on the last business day prior to the date referred to in this
                  clause 4.2 a certificate signed by the Company,  TDYT and each
                  Director  (or on behalf of each  Director) in the form set out
                  in schedule 3 and a certified copy of the minutes of the Board
                  evidencing  the  conditional  allotment  of  the  Subscription
                  Shares under clause 11.1;

         4.2.7    DDCF (having  consulted  with DDCM) not having  exercised  any
                  rights  which  it  may  have  to  terminate   its  and  DDCM's
                  obligations  under this  agreement  prior to  Admission  under
                  clause 17;

         4.2.8    completion of the Share Exchange  Agreement having occurred in
                  accordance with its terms;

         4.2.9    completion  of revised  banking  arrangements  between,  inter
                  alia, Citizens Bank, TDYT and Turbotec Products,  Inc. subject
                  only to receipt of funds by Citizens Bank in accordance with a
                  letter  agreement dated 25 April 2006 from Riemer & Braunstein
                  LLP; and

         4.2.10   Admission  becoming  effective  by 8.00 a.m. on 15 May 2006 or
                  such later time and/or  date as DDCF  (having  consulted  with
                  DDCM) and the Company shall agree in writing,  not being later
                  than 30 June 2006.

4.3      The Company and the  Directors  shall use their  respective  reasonable
         endeavours  to procure that each of the  Conditions is satisfied by not
         later  than the time and date  specified  for its  fulfilment  (or such
         later time or date as DDCF and the  Company  shall  agree in writing in
         accordance with clause 4.1 or 4.2 (as appropriate)).

4.4      If any of the  Conditions  is not  fulfilled  (or waived by DDCF) on or
         before the time and/or date specified for its fulfilment (or such later
         time as DDCF and the Company agree in writing in accordance with clause
         4.1 or 4.2 (as appropriate)) or if any such Condition becomes incapable
         of being fulfilled and DDCF notifies the Company that it will not waive
         such condition, clause 17.3 shall apply as if the non-fulfilment of the
         relevant  Condition had been an event  permitting DDCF to terminate its
         obligations  under this agreement within clause 17.1 and, except to the
         extent  specified in clause 17.3, the  obligations of the parties under
         this agreement shall cease.

                                       9
<PAGE>

5.       DELIVERY AND RELEASE OF DOCUMENTS

5.1      The  Company  shall  ensure that DDCF and DDCM  receive  the  documents
         listed  in  schedule  4 on or  before  the  time(s)  specified  in that
         schedule for the delivery of them.

5.2      The Company shall procure that:

         5.2.1    the  Admission  Document is  published  as required by the AIM
                  Rules;

         5.2.2    sufficient copies of the Admission Document are made available
                  at the registered office of the Company; and

         5.2.3    the  documents  stated  in the  Admission  Document  as  being
                  available  for   inspection   shall  be  made   available  for
                  inspection in accordance  with the provisions of the Admission
                  Document.

5.3      The Company  and/or TDYT shall deliver or cause to be delivered to DDCF
         and/or DDCM such other  information  and  documents as DDCF or DDCM may
         reasonably  require in order to discharge  its  obligations  under this
         agreement and otherwise in connection with the Placing.  In particular,
         the  Company  shall  deliver  to DDCF  and  DDCM  such  numbers  of the
         Admission  Document  as  it  shall  require  in  order  that  it  might
         distribute the same to such  institutional  and other investors as they
         in their sole discretion determine.

5.4      The Company,  the Directors and TDYT agree with and acknowledge to DDCF
         and DDCM that neither DDCF,  DDCM, any other Protected Person or any of
         their professional advisers,  shall be responsible to the Company or to
         the  Directors  for  verifying  the  accuracy  and/or  fairness  of any
         information  published  in the  Admission  Document or those  documents
         otherwise published by the Company in connection with the Placing.

6.       ANNOUNCEMENTS

6.1      Each party to this agreement (other than DDCF and DDCM) undertakes that
         during the period  commencing on the date of this  agreement and ending
         on  Admission  or,  as the case may be,  after  the date on which  this
         agreement terminates or fails to become unconditional, it will not, and
         to the extent it is within its  control,  it will procure that no other
         person  will,  make any  public  announcement  or public  communication
         concerning  the Company or any other Group  Company,  the Placing,  the
         Placing  Documents  or the Placing  Shares  without  the prior  written
         consent of any  director or managing  director of DDCF,  provided  that
         this clause shall not apply to:

         6.1.1    any announcement or written  communication under clause 6.2 or
                  otherwise   required  by  the  AIM  Rules,  the  London  Stock
                  Exchange,  the Financial Services Authority or other competent
                  regulatory body or as required by law;

         6.1.2    any  announcement  made by DDCF or DDCM which they consider is
                  required  for the  proper  discharge  of their  duties  as the
                  nominated adviser and/or broker (as the case may be);

                                       10
<PAGE>

         6.1.3    any  announcement  or  written  communication  which  DDCF has
                  previously  agreed in writing may be released (such  agreement
                  not to be unreasonably  withheld or delayed) and any statement
                  written  or oral made at a press  conference  or  presentation
                  organised or attended by a  representative  of DDCF insofar as
                  it  is  based  on  and  is  consistent  with  the  information
                  contained in the Admission Document;

         6.1.4    the provision of the Investor Presentation to such persons who
                  DDCF may approve or who attend presentations arranged by DDCF;
                  or

         6.1.5    (subject to prior  consultation with DDCF) any announcement or
                  written  confirmation  that  TDYT is  required  to make by the
                  regulatory body relevant to TDYT or as required by law.

6.2      The  Company   undertakes  to  DDCF  to  make  all  such  announcements
         concerning  the  Company  and/or the Placing as shall be  necessary  to
         comply  with the AIM  Rules  and DDCF  reserves  the  right  (following
         consultation  with the  Company) to make any such  announcement  if the
         Company  fails  (in the  reasonable  opinion  of  DDCF) to  fulfil  its
         obligations under this clause 6.2 as soon as reasonably practicable.

6.3      The  Company  will  discuss  with  DDCF  any  public   announcement  or
         communication  which any  person  proposes  to make or  publish  within
         clauses  6.1.1 or 6.2 (and will  have due  regard  to the  comments  of
         DDCF).

7.       SUPPLEMENTARY ADMISSION DOCUMENTS

7.1      The Company and each Director  severally  undertakes to notify DDCF and
         DDCM  immediately on becoming aware at any time up to the  Commencement
         of Dealings of any matter which:

         7.1.1    indicates  that a material new factor,  mistake or  inaccuracy
                  relating the information  contained in the Admission  Document
                  has  arisen or may arise such that a  Supplementary  Admission
                  Document  is or may be  required by the notes to Rule 3 as set
                  out in  Part  Two -  Guidance  Notes  of the AIM  Rules  or is
                  otherwise  material or required to make the  statements in the
                  Admission Document not misleading in any material respect; or

         7.1.2    is or might be material in the  context of any  assumption  or
                  other  matter  relevant  to any  forecast or  statement  about
                  prospects in the Admission Document; or

         7.1.3    indicates that a significant change or new matter has or might
                  have occurred before the Commencement of Dealings.

7.2      DDCF may (acting  reasonably)  require the Company at the Company's own
         reasonable expense to:

         7.2.1    prepare a  Supplementary  Admission  Document in such terms as
                  DDCF reasonably  require and publish it in such manner as DDCF
                  may require;

                                       11
<PAGE>

         7.2.2    make an  announcement  in such  terms  and in such a manner as
                  DDCF may reasonably require;

         7.2.3    despatch a written notice or some other form of  communication
                  in such terms and in such  manner  and to such  persons as the
                  DDCF may reasonably require; and/or

         7.2.4    take such other  additional or  alternative  steps as the DDCF
                  may reasonably require,

         in each case at the Company's own expense and in such form as DDCF  may
         reasonably require.

7.3      If a Supplementary Admission Document is published, the representations
         and Warranties relating to the Admission Document given under clause 14
         and  Part I of  schedule  2 shall  be  deemed  repeated  on the date of
         publication  of  such  Supplementary  Admission  Document  and  when so
         repeated  shall be read and construed as if  references  therein to the
         Admission Document meant the Admission Document when read together with
         such Supplementary Admission Document.

8.       THE SUBSCRIPTION SHARES

8.1      The Company:

         8.1.1    irrevocably  appoints  DDCM as its  agent for the  purpose  of
                  procuring  Placees for the Subscription  Shares at the Placing
                  Price and otherwise on the terms and subject to the conditions
                  set  out  in  the  Placing  Documents  and  any  Supplementary
                  Admission Document;

         8.1.2    confers on DDCM all powers,  authorities  and  discretions  on
                  behalf of the Company  which are  necessary  for or reasonably
                  incidental  to the  procuring of Placees for the  Subscription
                  Shares  or  otherwise  for  giving  effect  to this  agreement
                  including  giving any  instructions  to any of the  Registrars
                  which DDCM considers  necessary or advisable in the context of
                  the Placing; and

         8.1.3    agrees to ratify  and  confirm  everything  which  DDCM  shall
                  lawfully  and properly do or have done in the exercise of such
                  appointment, powers, authorities and discretions.

8.2      DDCM agrees, as agent of the Company, to use its reasonable  endeavours
         to procure subscribers at the Placing Price for the Subscription Shares
         and otherwise on the terms and subject to the conditions set out in the
         Placing  Documents and this agreement  (including  satisfaction  of the
         Conditions).

9.       THE SALE SHARES

9.1      TDYT:

         9.1.1    agrees to sell,  to such  persons as may be nominated by DDCM,
                  with full title  guarantee free from any adverse  interest and
                  with all  rights  attaching  to them

                                       12
<PAGE>

                  the Sale Shares at the Placing  Price in cash and otherwise on
                  the terms and subject to the conditions set out in the Placing
                  Documents;

         9.1.2    irrevocably  appoints  DDCM as its  agent for the  purpose  of
                  arranging  purchasers  for  the  Sale  Shares  in  cash at the
                  Placing  Price and  otherwise  on the terms and subject to the
                  conditions set out in the Placing Documents;

         9.1.3    confirms that the  appointment in clause 9.1.2 confers on DDCM
                  all powers,  authorities and  discretions  which are necessary
                  for or  reasonably  incidental  to the procuring of purchasers
                  for the Sale Shares to be sold by TDYT  (including  the giving
                  of all  and  any  instructions  to the  Registrar  which  DDCM
                  considers  necessary  or  advisable  in  connection  with  the
                  Placing)  and agrees to ratify and  confirm  everything  which
                  DDCM  shall  lawfully  and  properly  do or  have  done in the
                  exercise  of  such   appointment,   powers,   authorities  and
                  discretions in accordance with this agreement;

         9.1.4    undertakes:

                  9.1.4.1  not to give any direction to DDCM, the Company or the
                           Directors, and not to take any other action, which is
                           inconsistent  with  his  obligations  to  DDCM or the
                           authorities  conferred  by him under this  agreement;
                           and

                  9.1.4.2  to  keep  DDCM  fully  and  effectively   indemnified
                           against any loss  arising  from any breach by TDYT of
                           the  warranty  made by TDYT in the  terms  set out in
                           Part  III  of   schedule   2  or  of  any  of  TDYT's
                           undertakings in this clause 9.

9.2      DDCM  agrees  as agent of TDYT,  to use its  reasonable  endeavours  to
         procure  purchasers  for the  Sale  Shares  at the  Placing  Price  and
         otherwise  on the terms and  subject to the  conditions  set out in the
         Placing  Documents and this agreement  (including  satisfaction  of the
         Conditions).

9.3      TDYT undertakes to deliver to DDCM immediately  following  execution of
         this agreement:

         9.3.1    a share  certificate  duly issued by the Company in respect of
                  the of Sale Shares; and

         9.3.2    such  number of  transfer  forms as DDCM  shall  require  duly
                  executed in favour of such  person(s)  as DDCM may nominate in
                  respect of the Sale Shares.

         DDCM shall have the power to  complete  each such blank  transfer  form
         delivered to it under this clause 9.3 with the name(s) of the person or
         persons to be registered as the holder or holders of some or all of the
         Sale Shares to which that transfer  form  relates,  and to deliver that
         transfer form  accompanied  by the relevant  share  certificate  to the
         Company  or  the  Registrar  for  registration,  and  TDYT  irrevocably
         instructs  the  Company  and  the  Directors  to  give  effect  to such
         documents and any such application for registration to the exclusion of
         any  instruction  they may receive  from TDYT after  execution  of this
         agreement.  If Admission has not occurred by the time and date referred

                                       13
<PAGE>

         to in clause 4.2.5 or if this  agreement is  terminated by DDCF (having
         consulted with DDCM) in accordance with its terms:

         (a)      DDCM shall return to TDYT forthwith the documents of title and
                  stock  transfer  forms  delivered to it under this clause 9.3;
                  and

         (b)      the instructions  and  appointments  referred to in clause 9.1
                  will be of no further effect.

9.4      If TDYT  fails to comply  with its  obligations  under  clause  9.3 any
         director of DDCM may complete and execute on TDYT's  behalf one or more
         transfer forms in respect of the Sale Shares.

9.5      TDYT:

         9.5.1    irrevocably  appoints (by way of security for its  obligations
                  under this  Agreement)  any  director  of DDCM as its true and
                  lawful  attorney  in the name and on behalf of TDYT to execute
                  and/or  complete  on its behalf a transfer  form in respect of
                  the Sale Shares to be sold by TDYT under the Placing;

         9.5.2    agrees to ratify  everything  which any director of DDCM shall
                  lawfully and properly do in the exercise of the appointment in
                  9.5.1;

         9.5.3    acknowledges  and agrees  that this power of attorney is given
                  to secure the  performance by TDYT of its  obligations to DDCM
                  under this  agreement  within the meaning and for the purposes
                  of section 4 of the Powers of Attorney Act 1971;

         9.5.4    authorises  the delivery of this document (or a certified copy
                  of this document) to DDCF, DDCM, their solicitors,  the London
                  Stock  Exchange  and any other  person who requires a copy for
                  the purposes of or in connection with the Placing; and

         9.5.5    shall not give any instruction to the Company or the Directors
                  or DDCF or DDCM or take any action which is inconsistent  with
                  TDYT's  obligations  under this  agreement  which prevents the
                  registration of the Sale Shares in accordance with this clause
                  9.

9.6      Without  prejudice  to the  other  provisions  of  this  clause,  for a
         reasonable period following Admission, and in any event not more than 6
         months thereafter,  TDYT shall execute such additional documents and do
         such  additional  things as are  reasonably  necessary  or desirable to
         ensure  that the Sale Shares are  transferred  to the  relevant  Placee
         immediately following Admission.

9.7      TDYT shall be liable to pay all and any stamp duty and/or SDRT (if any)
         arising  in  respect  of the  sale  to and  purchase  by a  Placee,  in
         accordance with the provisions of this agreement, of the Sale Shares at
         a rate of 50p per (pound)100 (or part thereof) of the value of the Sale
         Shares at the Placing  Price or, as the case may be, stamp duty reserve
         tax in

                                       14
<PAGE>

         respect of the Sale Shares sold by it pursuant to this agreement at the
         rate of 0.5% of the value of the Sale Shares at the Placing Price.

10.      PLACING

10.1     DDCF  and/or  DDCM  shall  despatch  the  Placing   Documents  and  any
         Supplementary  Admission  Document  to  such  institutional  and  other
         investors as it determines in accordance  with clause 10.2.1 but not so
         as to cause any breach of FSMA.

10.2     DDCF and DDCM (after consultation with the Company) shall have absolute
         discretion   to  determine  all  matters  in  respect  of  the  Placing
         including:

         10.2.1   the  institutional  and other investors who are to receive the
                  Placing Documents and any Supplementary Admission Document;

         10.2.2   the identity of the Placees;

         10.2.3   the number (if any) of any  Placing  Shares  which each Placee
                  will acquire;

         10.2.4   the latest time at which Placing Letters may be despatched and
                  acceptances of the offers in them may be made; and

         10.2.5   the validity of acceptances  received in respect of any of the
                  Placing Shares.

10.3     Subject to the  satisfaction  of the Condition set out in clause 4.2.5,
         by no later  than 4.00 p.m.  on the  business  day prior to the date of
         Admission,  DDCF and/or DDCM shall deliver to the Company a list of the
         names of the persons who have agreed with it to take the Placing Shares
         on  the  terms  and  conditions  of  the  Placing   Documents  and  any
         Supplementary Admission Document. The list shall identify each Placee's
         allocation of Placing Shares.

11.      SETTLEMENT AND REGISTRATION

11.1     The Company and the Directors agree that the Subscription  Shares shall
         be allotted:

         11.1.1   conditionally on Admission becoming effective by no later than
                  the time and date  referred to in clause  4.2.5 (or such later
                  time and/or date as the  Company  and DDCF  (having  consulted
                  with DDCM) may agree in writing);

         11.1.2   subject to the  memorandum  and Articles of Association of the
                  Company;

         11.1.3   credited as fully paid free from any  encumbrance and on terms
                  that  they  will  rank  pari  passu in all  respects  with the
                  existing Ordinary Shares; and

         11.1.4   on and  subject  to the  terms and  conditions  set out in the
                  Placing Documents.

11.2     The Company and the Directors shall procure that the Registrars arrange
         the issue of definitive share certificates not later than five business
         days after Admission to the Placees (or their nominees).

                                       15
<PAGE>

11.3     No  later  than  three  business  days  following   Admission  becoming
         effective,  DDCM  shall pay or procure  to be paid to the  Company  the
         price for the  Subscription  Shares  (at the  Placing  Price)  less the
         commissions,  fees and expenses  (including DDCM and DDCF's legal fees)
         due to DDCM and DDCF from the  Company  and which  are  referred  to in
         clause 12 (if then known) (and any applicable  VAT). Any payment due to
         the Company in accordance  with this clause 11.3 shall be made, for the
         benefit of the Company,  by telegraphic  transfer to Turbotec Products,
         Inc's bank  account with  Citizens  Bank at One  Citizens  Drive,  East
         Providence RI 02915, ABA Routing Number 011500120,  Beneficiary Account
         Number  1130184266  or such other bank  account  as the  Company  shall
         specify in writing.  Such payment shall operate as a complete discharge
         of all of DDCF's  and  DDCM's  obligations  to the  Company  under this
         clause 11. If and to the  extent  that any  interest  is earned on such
         monies  between  Admission  and the time  such  monies  are paid to the
         Company,  DDCF and/or DDCM (as the case may be) shall  account for that
         interest (less any tax due on the same) to the Company.

11.4     No later than three days business  days  following  Admission  becoming
         effective,  DDCM shall pay or procure to be paid to TDYT (as  specified
         below) an amount equal to (pound)2,233,061.20,  being the Placing Price
         multiplied by the number of Sale Shares less:

         11.4.1   the  commission   payable  by  TDYT  in  accordance  with  the
                  provisions of clause 12; and

         11.4.2   an amount  equal to any stamp duty or SDRT  payable by TDYT in
                  accordance with the provisions of clause 9.7

         (and DDCM shall pay any amount so  deducted in respect of stamp duty or
         SDRT to the HM  Revenue  &  Customs  as soon as that  duty is due to be
         paid).  Of the sums  payable  to TDYT  pursuant  to this  clause  11.4,
         $1,475,000  plus an amount of  interest  to be  determined  immediately
         following  Admission  shall  be paid to  Citizens  Bank by  telegraphic
         transfer to Citizen  Bank's bank  account  with Royal Bank of Scotland,
         London, SWIFT RBOSGB2L,  A/C  GB56RBOS16003412114840  (payment of which
         shall be deemed to constitute  payment to TDYT) and the balance payable
         shall be paid to TDYT by  telegraphic  transfer to  Turbotec  Products,
         Inc's bank  account with  Citizens  Bank at One  Citizens  Drive,  East
         Providence RI 02915, ABA Routing Number 011500120,  Beneficiary Account
         Number 1130184266 for the benefit of TDYT.

         If and to the extent that any interest is earned on such monies between
         Admission and the time such monies are paid to TDYT, DDCM shall account
         for that interest (less any tax due on the same) to TDYT.

12.      COMMISSIONS, FEES AND EXPENSES

12.1     Conditional upon Admission  occurring,  the Company shall pay to DDCF a
         corporate  finance fee of  (pound)120,000  for its services  under this
         agreement. Such fee shall be payable on the date of Admission less such
         amounts of the  staged  fee (as such term is defined in the  Engagement
         Letter) has have been paid to DDCF by such date.

                                       16
<PAGE>

12.2     Conditional upon Admission  occurring,  the Company shall pay to DDCM a
         commission  equal to 6 per cent of the sum resulting  from  multiplying
         the Placing Price by the number of Subscription Shares.

12.3     Conditional  upon  Admission  occurring,  TDYT  shall  pay  to  DDCM  a
         commission  equal to 6 per cent of the sum resulting  from  multiplying
         the Placing Price by the number of Sale Shares.

12.4     In addition to the fees and commissions referred to in clause 12.1 (and
         whether  or not  DDCF's and  DDCM's  obligations  under this  agreement
         become  unconditional  or are  terminated),  the Company  shall pay the
         other  expenses  of  or  incidental  to  the  Placing,  Admission,  the
         admission of the Ordinary  Shares as  participating  securities  within
         CREST and any related arrangements,  including (but not limited to) the
         expenses for printing, publication, advertising and distribution of the
         Press  Announcement,  the Pathfinder  Admission  Document,  the Placing
         Documents,  any  Supplementary  Admission  Document,  the  fees  of the
         Registrar  and its own and  DDCF's  and  DDCM's  professional  expenses
         (including without  limitation the fees of DDCF's solicitors,  Olswang,
         in an amount not exceeding  (pound)35,000  plus VAT and  disbursements)
         and  accountants  and other  expenses,  all stamp duty,  SDRT and other
         duties  and  taxes in  relation  to the  Placing.  The  Company  shall,
         immediately  on request,  reimburse DDCF and DDCM for the amount of any
         such expenses which may have been incurred by it in connection with the
         Placing.

13.      VAT

13.1     Where a person is required to pay any amount to DDCF or DDCM under this
         agreement, that person shall, in addition to the amount in question and
         if applicable, pay to DDCF or DDCM:

         13.1.1   in the case of a payment which is consideration for any supply
                  of services by DDCF or DDCM for VAT purposes,  an amount equal
                  to the VAT  properly  chargeable  in respect  of such  supply,
                  including   (without   limitation)   any  payment  by  way  of
                  reimbursement  of or in respect of expenses,  duties or taxes,
                  if  and to  the  extent  that  the  reimbursement  constitutes
                  consideration  for any supply by DDCF or DDCM, in each case on
                  receipt of a valid VAT invoice;

         13.1.2   in the case of any reimbursement of or in respect of expenses,
                  duties or taxes,  if and to the extent that the  reimbursement
                  does not  constitute  consideration  for any supply by DDCF or
                  DDCM incurred the expenses,  duties or taxes otherwise than as
                  agent  for the  company,  an  amount  equal to the  amount  in
                  respect of VAT properly  paid or payable by DDCF or DDCM which
                  is not  recoverable  for VAT purposes by DDCF or DDCM as input
                  tax or otherwise by repayment or set-off  (except so far as it
                  would be so recoverable had it been properly attributed, under
                  the method of  attribution  used by DDCF, to a taxable  supply
                  made by it); and

         13.1.3   in the case of any  reimbursement of or in respect of expenses
                  which  constitute  disbursements  incurred  by DDCF or DDCM as
                  agent on behalf of the  person and in respect of which the VAT
                  invoice is issued not to DDCF or DDCM but to

                                       17
<PAGE>

                  that  person,  that person  shall pay to DDCF or DDCM the full
                  amount of the disbursements including any amount in respect of
                  the VAT properly charged in respect thereof.

14.      REPRESENTATIONS AND WARRANTIES

14.1     Each  of  the  Company,   TDYT,   the   Executive   Directors  and  the
         Non-Executive  Director (the  "WARRANTORS")  severally  represents  and
         warrants  to DDCF and DDCM in the terms set out in Part I of schedule 2
         and  acknowledges  that DDCF and DDCM have been  induced  to enter into
         this  agreement in reliance  upon  representations  in the terms of the
         Warranties set out in Part I of schedule 2.

14.2     Each of the Directors  severally warrants to DDCF and DDCM with respect
         to  himself  in  the  terms  set  out  in  Part  II of  schedule  2 and
         acknowledges  that DDCF and DDCM have been  induced  to enter into this
         agreement  in  reliance  upon  representations  in  the  terms  of  the
         Warranties set out in Part II of schedule 2.

14.3     TDYT  warrants  to DDCF  and DDCM in the  terms  set out in Part III of
         schedule  2 and  acknowledges  that DDCF and DDCM have been  induced to
         enter into this agreement in reliance upon representations in the terms
         of the Warranties set out in Part III of schedule 2.

14.4     Each of the Warranties:

         14.4.1   is given at the date of this  agreement and shall be deemed to
                  be  repeated  and given at all times up to and  including  the
                  Commencement of Dealings; and

         14.4.2   shall be  construed  independently  of any other  and  (unless
                  expressly  provided to the  contrary)  shall not be limited or
                  restricted  by  reference  to  or  inference  from  any  other
                  provision of this agreement or any other Warranty.

14.5     The Company,  each of the  Directors and TDYT  severally  undertakes to
         DDCF and DDCM that  (except  only as may be necessary to give effect to
         this agreement) it or he shall not knowingly do, or knowingly allow (so
         far as it is within its or his power to prevent the same) or  knowingly
         procure any act or omission  during the period up to and  including the
         Commencement of Dealings which would  constitute a breach of any of the
         Warranties  or which  would make any of them  untrue or  inaccurate  or
         misleading  in any  material  respect if repeated by reference to facts
         and  circumstances in existence at any time during the period up to and
         including the Commencement of Dealings.

14.6     The Company,  each of the  Directors and TDYT  severally  undertakes to
         notify DDCF and DDCM immediately if at any time before  Commencement of
         Dealings it or he becomes aware that any of the Warranties  given by it
         or him was or might have been untrue,  inaccurate  or misleading at the
         date of this  agreement  or would or might  be  untrue,  inaccurate  or
         misleading  if  repeated  by  reference  to facts or  circumstances  in
         existence at any time up to and including Commencement of Dealings. The
         Company,  each of the Directors and TDYT  severally  undertakes to take
         all reasonable steps promptly to provide DDCF and DDCM with any further
         information  which it requests if it is notified or  otherwise  becomes
         aware of anything such as is referred to in this clause.

                                       18
<PAGE>

14.7     Each of the Directors  severally  warrants to DDCF and DDCM that (other
         than pursuant to the articles of  association of the Company) there are
         no  agreements  or  arrangements  under which the Company  could become
         obliged to  indemnify  or  compensate  any  Director for any losses (as
         defined in clause 15.1)  incurred under this agreement or in connection
         with the  application  for  Admission and the Placing and hereby waives
         any right of  contribution  or  payment  they may have,  whether  under
         statute,  contract at common law or  otherwise,  against the Company in
         respect of any claim  made  against  them or in respect of any  payment
         made by them arising out of or in connection  with the  application for
         Admission,  Placing,  the Admission Document,  any of the other Placing
         Documents or this agreement.

14.8     The Company  warrants to the DDCF and DDCM that there are no agreements
         or  arrangements  under  which the  Company  could  become  obliged  to
         indemnify or compensate TDYT for any losses (as defined in clause 15.1)
         incurred under this agreement or in connection with the application for
         Admission or the Placing.

14.9     The Company,  each of the Directors and TDYT hereby severally  confirms
         to DDCF and DDCM that, save for any insurance arrangements entered into
         by it or him with its or his  insurers,  neither  it nor he (and in the
         case of the  Company,  each member of the Group) has  entered  into any
         agreement or arrangement concerning his or its liability for any breach
         of the representations,  Warranties, undertakings and indemnities given
         by it or him under  this  agreement  and,  subject  to clause  16,  the
         Company's, each of the Directors' and TDYT's liability is not qualified
         or limited in any respect.

14.10    The Warranties,  representations,  undertakings and indemnities set out
         in this  agreement and the provisions of clause 15 shall remain in full
         force and effect  notwithstanding the completion of all the matters and
         arrangements referred to in or contemplated by this agreement.

14.11    None  of the  investigations  made by or on  behalf  of DDCF or DDCM in
         relation  to the  Company  shall in any way affect or be deemed to be a
         waiver of any  Warranties,  undertakings  or  indemnities  given by the
         Company, the Directors or TDYT in this agreement.

14.12    Any Placee  acquiring  Placing  Shares  shall have,  in addition to any
         other  rights and  remedies it may have,  the rights and  remedies of a
         person acquiring Placing Shares on the basis of the Placing Documents.

14.13    In the event that:

         14.13.1  any  deduction  or  withholding  is required by law to be made
                  from any sum payable by any person pursuant to this clause 14,
                  the person in question  shall be obliged to pay such increased
                  sum as will, after the deduction or withholding has been made,
                  leave the recipient with the same amount as it would have been
                  entitled to receive in the absence of such requirement to make
                  a deduction or withholding; and

         14.13.2  any sum paid by any person  pursuant  to this  clause 14 is or
                  will be chargeable to Tax and such Tax has not been taken into
                  account in computing any

                                       19
<PAGE>

                  measure  of  damages  or other  relevant  sum,  the  person in
                  question shall be obliged to pay such further or increased sum
                  or sums as will,  after payment of the Tax,  leave a sum equal
                  to the amount that would  otherwise  have been  payable if Tax
                  had not been so chargeable  and for these purposes a sum shall
                  be regarded as  chargeable  to Tax in  circumstances  where it
                  would  have  been  chargeable  to  Tax  but  for  some  relief
                  available to the recipient.

15.      EXCLUSION OF DDCF'S AND DDCM'S LIABILITY AND INDEMNITY

15.1     No claim may be made by the Company,  any Director or TDYT  (whether in
         contract,  tort or otherwise)  against any Protected  Person to recover
         any loss, damage, cost, charge or expense ("LOSSES") which the Company,
         any Director, TDYT or any other person may suffer or incur by reason of
         or arising out of or in connection with:

         15.1.1   the application for Admission, the Placing and/or the carrying
                  out by DDCF  and/or  DDCM of  their  obligations  under  or in
                  connection with this agreement; or

         15.1.2   the  exercise by DDCF and/or DDCM of their  rights  under this
                  agreement,

         except to the  extent  such  losses  result  from the  wilful  default,
         negligence or fraud of any Protected Person or a breach by DDCF or DDCM
         of their  obligations  under this agreement or of their  obligations to
         the Company,  TDYT or the Directors  under FSMA or under the regulatory
         system (as defined in the rules of the Financial Services Authority).

15.2     The  Company  and  TDYT  will  jointly  and  severally  indemnify  each
         Protected  Person and keep them fully and effectively  indemnified from
         and against all claims, actions,  liabilities,  demands, proceedings or
         judgements  ("CLAIMS") made or established against any Protected Person
         and against all losses (as defined in clause  15.1),  which a Protected
         Person may suffer or incur and which arise, directly or indirectly, out
         of or in connection with:

         15.2.1   DDCF's and DDCM's provision of services in connection with the
                  application for Admission,  the Placing and/or the performance
                  of its obligations under or in connection with this agreement;

         15.2.2   the  publication  or  despatch  of  the  Pathfinder  Admission
                  Document,  any of the Placing  Documents and any Supplementary
                  Admission Document;

         15.2.3   the issue or approval of any financial  promotion  relating to
                  the Placing and/or the Company;

         15.2.4   the Admission Document or any Supplementary Admission Document
                  not containing,  or being alleged not to contain, all relevant
                  information;

         15.2.5   any statement in any Placing  Document,  in any  Supplementary
                  Admission Document,  in the Pathfinder Admission Document,  or
                  in any other document or presentation  relating to the Placing
                  (whether  of  fact,  opinion,  expectation  or  intention  and
                  including any forecast or estimate)  being or being alleged to
                  be untrue,  inaccurate,  incomplete or misleading or as having
                  been  made

                                       20
<PAGE>

                  negligently  or  otherwise  without the  required  standard of
                  skill and care or reasonableness;

         15.2.6   the allotment and/or issue and/or sale of the Placing Shares;

         15.2.7   any breach by the Company, TDYT or any of the Directors of any
                  of their  respective  obligations  under this agreement or any
                  breach or alleged breach of the Warranties, representations or
                  undertakings set out or referred to in this agreement; and/or

         15.2.8   any  breach of the Act,  the AIM  Rules or any  other  laws or
                  regulations of any country or regulatory authority as a result
                  of or in connection with the making of the Placing,

         except to the extent that such claims or losses are due to:

         (i)      the  negligence,  wilful  default  or fraud  of any  Protected
                  Person; or

         (ii)     a breach of DDCF's or DDCM's  obligations under this agreement
                  or FSMA or under the  regulatory  system (as defined in clause
                  15.1).

15.3     If  HM  Revenue  &  Customs  or  any  other  taxing  authority  in  any
         jurisdiction  brings into any charge to taxation any sum payable  under
         any indemnity  contained in this clause 15 ("the original amount") then
         (to the  extent  that the matter in respect of which the sum is payable
         is not allowable as a deduction for tax purposes) the amount so payable
         shall be  grossed-up by such amount ("the  additional  amount") as will
         ensure that after subtraction of the taxation so chargeable there shall
         remain a net sum equal to the  original  amount.  To the extent  that a
         Protected  Person  subsequently   obtains  any  tax  credit,   benefit,
         allowance  or  repayment  of tax as a result of the Company or TDYT (as
         the case may be) paying to the Protected  Person the additional  amount
         or as a result of or in connection with the  circumstances  giving rise
         to the payment of the  additional  amount,  the Protected  Person shall
         notify the  Company  or TDYT in writing  (as the case may be) and shall
         pay to the  Company  or the  Directors  (as the case may be) an  amount
         which  equates to so much of the economic  benefit  which the Protected
         Person has received from that tax credit, benefit, allowance, repayment
         or relief as does not exceed the additional  amount (any question as to
         the  accrual  or amount  of any such  economic  benefit,  the order and
         manner of making any claim for any tax credit, allowance,  repayment or
         relief, and the timing of any payment being determined by the Protected
         Person's auditors if the relevant person does not have auditors).  Such
         additional  amount  shall be paid  not  later  than  the  later of five
         business  days before the date on which the payment of such taxation is
         due to the relevant Tax  authority and five business days after written
         notification  is given to the Company or TDYT (as the case may be) that
         such additional amount is payable.

15.4     If the  Company  enters  into any  agreement  or  arrangement  with any
         adviser for the purpose of or in connection with the Placing, the terms
         of which  provide  that the  liability of the adviser to the Company or
         any  other  person  is  excluded  or  limited  in any  manner,  and any
         Protected  Person may have joint  and/or  several  liability  with such
         adviser  to the  Company  or to any  other  person  arising  out of the
         performance  of its duties under this letter or if the liability of any
         third  party to the  Company  (including  such  adviser)  is limited

                                       21
<PAGE>

         or excluded in any other way, whether under statute,  in contract or as
         a result of death, bankruptcy or insolvency, the Company shall:

         15.4.1   not be  entitled  to  recover  any amount  from any  Protected
                  Person which,  in the absence of such exclusion or limitation,
                  such  Protected  Person  would have been  entitled  to recover
                  pursuant to the Civil Liability (Contribution) Act 1978;

         15.4.2   indemnify each of the Protected  Persons on an after tax basis
                  in respect of any increased liability to any third party which
                  would not have  arisen in the  absence  of such  exclusion  or
                  limitation; and

         15.4.3   take such other action as any Protected  Person may require to
                  ensure  that  such  Protected  Person is not  prejudiced  as a
                  consequence of such agreement or arrangement.

15.5     The  provisions  of clause 21 (third party  rights)  shall apply to the
         enforcement by any Protected Person of the undertakings and indemnities
         in this clause.

16.      LIMITS ON LIABILITY

16.1     No claim  shall be made  against any  Director or TDYT under  clause 14
         unless the claim  (together with  reasonable  details of the claim) has
         been notified to the Company,  the relevant Director or TDYT in writing
         on or before the date falling  three months  after  publication  of the
         reports and  accounts  of the Company for the year ending 30  September
         2007.

16.2     The maximum  aggregate  liability of the Directors and TDYT  (including
         interest and costs) for breach of the Warranties shall not exceed:

         16.2.1   in the case of the Executive Directors, an amount equal to two
                  times the amount of their annual salary payable by the Company
                  following Admission;

         16.2.2   in the case of the  Non-Executive  Director an amount equal to
                  two times the amount of his annual fee  payable by the Company
                  following Admission; and

         16.2.3   in the  case of TDYT the  proceeds  of the sale by TDYT of the
                  Sale  Shares  plus  an  amount  equal  to the  gross  proceeds
                  received by TDYT from the sale of Ordinary Shares on or before
                  30 September 2007.

16.3     The maximum aggregate liability of any of the parties as stated in this
         clause  shall  be  inclusive  of any  amounts  payable  in  respect  of
         interest, expenses or VAT.

16.4     None of the limitations  for the benefit of a particular  party set out
         in this clause 16 shall apply to any claim which  arises as a result of
         fraud or fraudulent concealment by that particular party.

17.      TERMINATION

17.1     If at any time prior to  Admission  DDCF (having  consulted  with DDCM)
         reasonably believes that:

                                       22
<PAGE>

         17.1.1   any of the  Warranties is untrue or misleading in any material
                  respect; or

         17.1.2   the  Company,  any Director or TDYT is in breach of any of its
                  obligations  under this  agreement  which is  material  in the
                  context of the Placing and which is not readily remediable and
                  so remedied; or

         17.1.3   an event or other matter has  occurred,  or is likely to occur
                  and which:

                  17.1.3.1 makes  (or  would  make  if it  occurs)  any  of  the
                           Warranties  untrue  or  misleading  in  any  material
                           respect  if  repeated  by  reference  to the facts or
                           circumstances  in  existence  at any  time  up to and
                           including     Admission      (notwithstanding     any
                           communication or announcement from the Company); or

                  17.1.3.2 constitutes  (or  will  constitute  if it  occurs)  a
                           material new factor, mistake or inaccuracy; or

                  17.1.3.3 is (or will be if it occurs)  material in the context
                           of any  assumption  or other  matter  relevant to any
                           statement  about  the  Company's   prospects  in  the
                           Admission Document; or

         17.1.4   a requirement to publish a  Supplementary  Admission  Document
                  has arisen; or

         17.1.5   an event or other matter (including,  without limitation,  any
                  change  or  development  in  economic,  financial,  political,
                  diplomatic  or other  market  conditions  or any change in any
                  government  regulation)  has  occurred  or is  likely to occur
                  which, in the reasonable opinion of DDCF, is (or will be if it
                  occurs)  likely  materially  and  prejudicially  to affect the
                  business of the Group,  or otherwise  makes it  impractical or
                  inadvisable  for  DDCF or DDCM to  perform  their  obligations
                  under  this  agreement   (and  for  these   purposes   "market
                  conditions"  includes conditions  affecting  securities in the
                  business  sector in which the Company  operates and conditions
                  affecting securities generally)

         DDCF may (after such consultation with the Company as the circumstances
         shall permit)  terminate all of its  obligations  under this  agreement
         which remain unperformed by giving notice of termination to the Company
         in accordance with clause 17.2.

17.2     A notice of termination may be served in accordance with clause 23, and
         on the day that  Admission  is  proposed  to take  place and on the day
         prior to such day  only,  notice  of  termination  may be given  orally
         (including by telephone) to any Director. If a notice of termination is
         given orally,  DDCF shall as soon as possible  deliver or send a notice
         in  writing  to the  Company  and DDCM in  accordance  with  clause  23
         confirming that the notice of termination was given, and specifying the
         time and date of the  termination  and the  names of the  director  (or
         managing director) of DDCF and the Director involved.

17.3     If this agreement is terminated:

         17.3.1   subject  to  paragraph  17.3.2 no party  shall  have any claim
                  against any other party in respect of any act, matter or thing
                  arising  out  of or in  connection  with

                                       23
<PAGE>

                  this agreement for compensation,  costs or damages except that
                  any such cessation or termination  shall be without  prejudice
                  to any accrued rights or obligations of any party;

         17.3.2   a termination  notice shall not affect any of DDCF's or DDCM's
                  rights in connection  with any breach of this agreement or any
                  of their rights under clause 15 (indemnity);

         17.3.3   DDCM shall within 5 business  days of the date of  termination
                  return all monies (if any) received  from Placees  pursuant to
                  the Placing; and

         17.3.4   clauses 1 (definitions and interpretation), 6 (announcements),
                  12  (Fees),   13  (VAT),   15   (exclusion  of  liability  and
                  indemnity),  16 (limits on liability),  17.3 (this clause), 21
                  (third party rights), 23 (notices) and 25 to 30 (supplemental)
                  shall remain in full force and effect.

18.      SERVICE AGREEMENTS

18.1     The service agreements referred to in this clause are those referred to
         in the  Admission  Document as having  been  entered  into  between the
         Company  and  any  Director,   and  as   subsequently   amended  and/or
         superseded.

18.2     The Company undertakes to DDCF that during the period commencing on the
         date of this agreement and ending on 12 months after Admission,  except
         with the prior written  consent of DDCF, the Company shall not agree to
         any increase in salary or other benefits under any service agreement or
         to  any  Director  being  released  from  any  material  obligation  or
         liability arising under any service agreement.

18.3     Where the  employer  under a service  agreement  is not the Company but
         another Group Company,  clause 18.2 shall apply as if the references to
         the Company are references to that other Group Company, and the Company
         had  undertaken to procure  compliance by that other Group Company with
         that clause.

19.      CONTINUING OBLIGATIONS

19.1     The Company and each of the  Directors  (while he remains a director of
         the Company) shall comply with the statutory  requirements  referred to
         in clause 19.2, the  requirements of the AIM Rules, the CREST Rules and
         other requirements relating to CREST, the requirements of the City Code
         which affect the Company or (as the case may be) its  directors and any
         other  requirements from time to time in force in relation to companies
         whose share are admitted to trading on AIM.

19.2     The statutory requirements for the purposes of clause 19.1 are those of
         the Act,  Part V of the Criminal  Justice Act 1993,  FSMA and the CREST
         Regulations.

19.3     The Company,  the  Directors  and TDYT,  acknowledge  that the Ordinary
         Shares have not been and will not be registered under the US Securities
         Act and have not been and will not be offered or sold within the United
         States except  pursuant to an exemption  from, or in a transaction  not
         subject to, the  registration  requirements  of the US Securities  Act.

                                       24
<PAGE>

         Each of the Company,  TDYT,  the  Directors  confirms that it or he has
         not,  nor any  persons  acting on its or his behalf  have,  engaged and
         undertakes  that it or he will not, nor will any persons  acting on its
         or his behalf,  engage in any directed  selling  efforts (as defined in
         Regulation S under the US  Securities  Act) with respect to the Placing
         Shares and has not made nor will make,  directly or indirectly,  offers
         or sales of the Placing  Shares in the United States or solicit  offers
         to buy or otherwise  negotiate in connection with the Placing Shares in
         the United States.

19.4     The Company  agrees not to recognise (and to instruct its agents not to
         effect  transfer)  any  attempted  sale,  pledge,  or  other  purported
         transfer of any Placing  Share that is in violation of (i) the transfer
         restrictions  relating to the Placing  Shares  which are set out in the
         section  in  Part  IV of  the  Admission  Document  entitled  "Transfer
         Restrictions";  (ii) the US Securities Act and (iii) any applicable law
         or  jurisdiction  of the United States  governing the offer and sale of
         securities.

19.5     The Company  undertakes  to DDCF and DDCM to apply for the admission of
         the Ordinary  Shares to paperless  settlement of trades and the holding
         of Ordinary  Shares in  uncertified  form in CREST,  being the relevant
         system administered by CRESTCo, on or as soon as reasonably practicable
         after  the date  which is the  later of (a) the time  when the  Placing
         Shares are first offered to persons other than distributors in reliance
         upon  Regulation S of the US Securities Act and (b) the  anniversary of
         the date of Admission.

19.6     The Company  undertakes to DDCF that between the date of this agreement
         and the Announcement Date:

         19.6.1   it will inform DDCF if any person is  appointed,  or ceases to
                  be, a  director  of the  Company  or if the Board has made any
                  determination in respect of an appointment or removal;

         19.6.2   it will not without the prior written  consent of DDCF (not to
                  be   unreasonably   withheld)  enter  into  any  agreement  or
                  arrangement or knowingly do or permit to be done any other act
                  or thing which, in any case would:

                  19.6.2.1 give rise to any  obligation to make an  announcement
                           to the London Stock Exchange; or

                  19.6.2.2 involve  any  increase  in  or  obligation   (whether
                           contingent  or  otherwise)  to allot any of the share
                           capital of the Company save for grants or exercise of
                           share  options   within   limits   described  in  the
                           Admission Document; and

         19.6.3   it will not take any steps which, in the reasonable opinion of
                  DDCF, would be materially  inconsistent with any expression of
                  policy  or  intention  in  the   Admission   Document  or  any
                  Supplementary Admission Document.

19.7     Each  Director  will take  reasonable  steps to ensure  that  until the
         Announcement  Date no person  will be  appointed  as a director  of the
         Company unless he has first executed an undertaking  with DDCF (in such
         terms as DDCF may  reasonably  require) to comply  with the  continuing
         obligations of the Directors under this clause 19 of this agreement.

                                       25
<PAGE>

19.8     The  Company  undertakes  to DDCF that it shall,  at all times from and
         including the date of this agreement  until the  Announcement  Date, as
         soon as practicable:

         19.8.1   provide  DDCF  with  such  financial  and  other   information
                  concerning  the Group  Companies as DDCF may from time to time
                  reasonably require;

         19.8.2   notify and discuss  with DDCF in advance any public  statement
                  or  document  which  any  Group  Company  proposes  to make or
                  publish and which relates to the financial affairs, condition,
                  trading or financial prospects or dividend policy of the Group
                  or to any acquisition, disposal,  re-organisation,  take-over,
                  merger or other scheme (including a profit sharing scheme or a
                  share option scheme);

         19.8.3   notify  and  discuss  with DDCF in advance  other  information
                  which the Company  may be  required to notify to a  Regulatory
                  Information   Service   (as  defined  in  the  AIM  Rules)  in
                  accordance with the AIM Rules; and

         19.8.4   forward to DDCF for its prior  perusal  and  written  approval
                  (which shall not be  unreasonably  withheld or delayed) proofs
                  of all  documents to be despatched to holders of the Company's
                  securities  and  documents  relating  to  takeovers,  mergers,
                  reorganisations or other schemes (including without limitation
                  employee  profit sharing  schemes or share option schemes) and
                  all  press  announcements  (other  than  routine  trade  press
                  announcements).

         19.8.5   The  Company   undertakes  to  DDCF  to  use  all   reasonable
                  endeavours to appoint two UK based  independent  non executive
                  directors (the  identities of whom have been approved by DDCF,
                  such  approval  not to be  unreasonably  withheld)  as soon as
                  possible and in any event within three months of Admission.

20.      UNDERTAKINGS WITH RESPECT TO SHARES

20.1     Each of the Directors undertakes to the Company and DDCF and DDCM not:

         20.1.1   to apply for, and to procure that no person connected with him
                  or it applies for, any of the Placing Shares; or

         20.1.2   (other than  pursuant to the  Placing) to dispose of, or agree
                  to dispose of, and to procure  that no person  connected  with
                  him or it disposes  of, or agrees to dispose of, any  interest
                  in any Ordinary Shares for the time being owned by such person
                  (in each case other than  under  this  agreement)  at any time
                  before Admission; or

         20.1.3   to dispose of, and to procure  that no person  connected  with
                  him or it disposes  of, or agrees to dispose of, any  interest
                  in any Ordinary Shares for the time being owned by such person
                  (in each case other than  pursuant to this  agreement)  at any
                  time  before  the  date  falling  12  months  from the date of
                  Admission; or

                                       26
<PAGE>

         20.1.4   for  a  period  of  12  months   following  the  date  of  the
                  anniversary  of Admission,  and shall procure that all persons
                  connected  with him or it, shall not for a period of 12 months
                  following the date of the anniversary of Admission, dispose of
                  any  Ordinary  Shares (or any  interest  in  Ordinary  Shares)
                  otherwise than through DDCM

         except with the prior written consent of DDCF.

20.2     TDYT undertakes to the Company and DDCF and DDCM not:

         20.2.1   to apply for any of the Placing Shares; or

         20.2.2   (other than  pursuant to the  Placing) to dispose of, or agree
                  to dispose of, and to procure that no person connected with it
                  disposes  of, or agrees to  dispose  of, any  interest  in any
                  Ordinary  Shares for the time being  owned by such  person (in
                  each case other than under this  agreement) at any time before
                  Admission; or

         20.2.3   for a period of 24 months following the date of Admission, and
                  shall  procure that all persons  connected  with it, shall not
                  for a period of 24  months  following  the date of  Admission,
                  dispose of any  Ordinary  Shares (or any  interest in Ordinary
                  Shares) otherwise than through DDCM

         except with the prior written consent of DDCF.

20.3     For the purposes of this clause 20:

         20.3.1   a reference to any interest in any  Ordinary  Shares  includes
                  any interest created under a mortgage, charge or assignment of
                  that share and any interest in, or right  relating to,  shares
                  in the  Company  arising  as a  result  of any  capitalisation
                  issue,  rights  issue  or open  offer  by the  Company  or any
                  consolidation or sub-division of its shares; and

         20.3.2   (notwithstanding  the provisions of clause 1.3 and in addition
                  to the provisions of clause 1.3) a person is "connected"  with
                  a Director if that  Director  would have to notify the Company
                  in respect of the interests of that person under  sections 324
                  or 328 of the Act.

20.4     The restrictions contained in clause 20.1 shall not apply:

         20.4.1   to a transfer or disposal by way of gift:

                  20.4.1.1 to a member of the family of the transferor  (meaning
                           the wife, husband,  parents, widow, widower, brother,
                           cohabitee,  adult child or  grandchild  (including  a
                           child or  grandchild  by adoption) of the  transferor
                           concerned);

                  20.4.1.2 to any person or persons  acting in the  capacity  of
                           trustee  or  trustees  of  a  trust  created  by  the
                           transferor or, upon any change of trustees of a trust
                           so created, to the new trustee or trustees,

                                       27
<PAGE>

                           provided that the trust is established for charitable
                           purposes   or  there  are  no  persons   beneficially
                           interested  under the trust other than the transferor
                           and members of the family  (which for these  purposes
                           shall  mean  the   individuals   set  out  in  clause
                           20.3.1.1) of the transferor; or

                  20.4.1.3 by the trustee or trustees of a trust to which clause
                           20.4.1.2   applies   to   any   person   beneficially
                           interested under the trust

                  provided that,  prior to the making of any such transfer,  the
                  relevant  transferee or trustee or trustees has satisfied DDCF
                  that the transferee falls within one of the categories  listed
                  in this clause 20.4.1 and the  transferee  has agreed in terms
                  reasonably acceptable to DDCF to be bound by the provisions of
                  clause 20.1 as if it were the relevant transferor;

         20.4.2   to an acceptance of a general offer (or giving an  irrevocable
                  undertaking  to accept an offer) for the share  capital of the
                  Company made in accordance with the City Code which has either
                  been recommended by the Directors or has become  unconditional
                  as to acceptances;

         20.4.3   to any compromise or arrangement  under section 425 of the Act
                  providing  for the  acquisition  by any  person  (or  group of
                  persons  acting  in  concert)  of 50 per  cent  or more of the
                  equity share capital of the Company;

         20.4.4   to any  scheme  of  reconstruction  under  section  110 of the
                  Insolvency Act 1986 in relation to the Company;

         20.4.5   to any  disposal  or  agreement  to dispose of an  interest in
                  Ordinary  Shares  of which  DDCF has  previously  approved  in
                  writing and DDCF will not  unreasonably  withhold its approval
                  where the  Director  or selling  shareholder  can  demonstrate
                  genuine financial hardship; or

         20.4.6   to any  disposal  to fund a  payment  obligation  (other  than
                  commissions) under this agreement.

20.5     Each of the Directors undertakes that he will not and will procure that
         no  Connected  Person,  within the  meaning  of Section  839 Income and
         Corporation Taxes Act 1988, shall:

         20.5.1   dispose of any  interest in any shares in the common  stock of
                  TDYT for a period of 12 months from the date of Admission; nor

         20.5.2   dispose  of  any  such  interest  for a  period  of 12  months
                  thereafter  except  with the prior  written  consent  of DDCF,
                  which consent shall not be unreasonably withheld or delayed,

         and for these  purposes,  the expression  "dispose" shall extend to any
         sale, transfer, charge, pledge, encumbrance or grant of any option over
         or in respect of or an  agreement  to do any of these  things  (whether
         oral or in writing).

                                       28
<PAGE>

21.      THIRD PARTY RIGHTS

21.1     Subject to and in accordance with clauses 21.2 and 21.3, each Protected
         Person may rely upon and  enforce  the terms of clause 15  against  the
         Company, each Director and TDYT.

21.2     The rights referred to in clause 21.1 (or otherwise  expressly provided
         in this  agreement)  may only be enforced by the  relevant  third party
         with the written  consent of DDCF and subject to and in accordance with
         the provisions of the Contracts (Rights of Third Parties) Act 1999 (the
         "1999 ACT") and all other relevant terms of this agreement.

21.3     Notwithstanding  any  other  provision  of  this  agreement  (including
         without  limitation  clause  21.1)  the  parties  may  amend any of the
         provisions of this  agreement in accordance  with clause 25 and without
         the consent of any third  party,  and  accordingly  section 2(1) of the
         1999 Act shall not apply.

21.4     Save as  provided in clause  21.1,  a person who is not a party to this
         agreement  shall have no rights  under the 1999 Act to enforce any term
         of this  agreement  but this does not  affect  any right or remedy of a
         third party which exists or is available apart from that Act.

22.      TIME OF THE ESSENCE

         Any time, date or period specified in this agreement may be extended by
         written  agreement  in  accordance  with  clause 25 but, as regards any
         time, date or period originally fixed or so extended,  time shall be of
         the essence.

23.      NOTICES

23.1     Any notice or other  communication  given or made under this  agreement
         shall  be in  writing  and  shall  be  delivered  by hand or fax to the
         address and for the  attention of the relevant  party set out in clause
         23.3 (or as otherwise  notified by that party in  accordance  with that
         clause).

23.2     Any such notice shall be deemed to have been received:

         23.2.1   if delivered by hand, at the time of delivery; or

         23.2.2   if delivered by fax, at the time of transmission

         provided that if deemed  receipt  occurs before 9.00 a.m. on a business
         day the notice  shall be deemed to have been  received  at 9.00 a.m. on
         that day,  and if deemed  receipt  occurs after 5.00 p.m. on a business
         day,  or on any day which is not a business  day,  the notice  shall be
         deemed to have been received at 9.00 a.m. on the next business day.

                                       29
<PAGE>

23.3     The addresses and fax numbers of the parties for the purposes of clause
         23.1 are:

         THE COMPANY, THE DIRECTORS AND TDYT:

         Address:               651 Day Hill Road
                                Windsor
                                Connecticut  06095
                                USA

         For the attention of:  Sunil Raina (for the Company and the Directors)/
                                Robert Lerman (for TDYT)

         Fax number:            +1 860 285 0139

         DDCF:

         Address:               17 Grosvenor Gardens
                                London SW1W 0BD

         For the attention of:  Rod Venables

         Fax number:            +44 (0) 207 509 4575

         DDCM:

         Address:               8-10 Grosvenor Gardens
                                London SW1W 0DH

         For the attention of:  David Banks

         Fax number:            +44 (0) 207 070 5657

         or such other  address or fax number as may be notified in writing from
         time to time by the  relevant  party  to the  other  parties.  Any such
         change to the place or fax number of service  shall  take  effect  five
         business  days after  notice of the change is received or (if later) on
         the date (if any)  specified  in the  notice  as the date on which  the
         change is to take place.

23.4     In proving  service it shall be  sufficient  to prove that the envelope
         containing  the notice was properly  addressed and delivered or, in the
         case of fax,  that the fax was properly  addressed  and  disclosed  the
         number  of  pages   transmitted   on  its  front  sheet  and  that  the
         transmission  report  indicates  that each of the pages of the fax were
         received at the relevant fax number.

24.      FURTHER ASSURANCE

24.1     The  Company  undertakes  to  DDCF  and  DDCM  that it  will  take  all
         reasonable  steps to ensure that each Group Company complies with those
         provisions  of this  agreement  which  are  applicable  to  that  Group
         Company.

                                       30
<PAGE>

24.2     The Company,  each Director and TDYT  severally  agrees and  undertakes
         with  DDCF and DDCM  that it or he will  give all such  assistance  and
         provide all such  information as DDCF and DDCM may  reasonably  require
         for the purposes of this agreement and the Placing.

25.      AMENDMENTS

25.1     This  agreement  may be amended by agreement  in writing  signed by the
         Company, the Directors, TDYT and any director (or managing director) of
         DDCF and DDCM on their behalf.

25.2     This  clause 25 also  applies to any  document  in an agreed  form (and
         including without limitation the documents listed in schedule 4) and to
         any amending agreement entered into under this clause.

26.      WAIVERS AND REMEDIES

26.1     The  failure  to  exercise  or delay in  exercising  a right or  remedy
         provided by this  agreement  or by law does not  constitute a waiver of
         the right or remedy or a waiver of other rights or remedies.

26.2     A release,  waiver or compromise or other arrangement of any kind which
         any  person  may agree to or  effect as  regards a breach of any of the
         terms of this  agreement or of a default under this  agreement will not
         prevent a party from subsequently  requiring compliance with the waived
         obligation  and does not  constitute  a waiver of any  other  breach or
         default and shall not affect the other terms of this agreement.

26.3     The rights and remedies  provided by this  agreement are cumulative and
         (subject as otherwise  provided in this agreement) are not exclusive of
         any rights or remedies available provided by law.

27.      ASSIGNMENT

         No party shall assign or transfer any rights or obligations  under this
         agreement,  or  purport  to do the  same,  or  sub-contract  any of its
         obligations  under this agreement  without the prior written consent of
         the other parties.

28.      ENTIRE AGREEMENT

         This agreement and the Engagement Letter between the Company,  DDCF and
         DDCM in relation to the Placing,  constitute  the entire  agreement and
         understanding  between the parties in  connection  with the Placing and
         supersedes any previous  agreement  between the parties relating to the
         subject  matter of this  agreement.  The  provisions of the  Engagement
         Letter  regarding  fees  in  the  event  of  Admission   occurring  are
         superseded by this agreement.

29.      GOVERNING LAW AND JURISDICTION

29.1     The validity,  construction  and performance of this agreement shall be
         governed by and  construed  in  accordance  with the law of England and
         Wales.

                                       31
<PAGE>

29.2     The  parties  to this  agreement  irrevocably  agree that the courts of
         England and Wales shall have exclusive  jurisdiction  over any claim or
         matter arising under or in connection  with this agreement or the legal
         relationships  established by this agreement and that  accordingly  any
         proceedings  in  respect  of any such claim or matter may be brought in
         such  courts.  Nothing in this clause  shall limit the right of DDCF or
         DDCM to take  proceedings  against the Company and any Warrantor in any
         other  court  of  competent  jurisdiction,  nor  shall  the  taking  of
         proceedings  in any one or more  jurisdictions  preclude  the taking of
         proceedings  in  any  other  jurisdiction  or  jurisdictions,   whether
         concurrently  or not, to the extent  permitted by the law of such other
         jurisdiction or jurisdictions.

29.3     Each  Director  not  resident in the UK and TDYT  irrevocably  appoints
         Jordans Limited of 20-22 Bedford Row, London,  WC1R 4JS as its agent to
         receive on its behalf in England service of any proceedings arising out
         of or in  connection  with this  agreement  or the legal  relationships
         established by this agreement.  Such service shall be deemed  completed
         on  delivery  to such  agent  (whether  or not it is  forwarded  to and
         received by the relevant party).

30.      EXCLUSION OF CLIENT RELATIONSHIP

         Each of the parties hereto (other than the Company)  acknowledges  that
         DDCF and DDCM are acting in an  advisory  capacity  for the  Company in
         connection  with the  application  for Admission and the Placing and no
         one else, and accordingly  will not be responsible to any party to this
         agreement  (other  than  the  Company)  nor to  any  other  person  for
         providing  protections  afforded to their respective  clients under the
         FSA  Handbook or advising any party to this  agreement  (other than the
         Company) or any other person in  connection  with the  application  for
         Admission and the Placing.

31.      EXECUTION

         This agreement may be executed in any number of counterparts and by the
         parties  to it in  separate  counterparts,  each of  which  shall be an
         original,  but all of which together shall  constitute one and the same
         instrument.

This  agreement  has been executed by the parties to it as a deed on the date at
the top of page 1.

                                       32
<PAGE>

                                   SCHEDULE 1

                                  THE DIRECTORS

                         PART I: THE EXECUTIVE DIRECTORS

Sunil Raina

Robert Ira Lieberman

both of 651 Day Hill, Windsor, Connecticut 06095, United States of America

                       PART II: THE NON-EXECUTIVE DIRECTOR

Anthony Charles Mirabella,
of 651 Day Hill, Windsor, Connecticut 06095, United States of America

                                       33
<PAGE>

                                   SCHEDULE 2

                                   WARRANTIES

                                     PART I

THE WARRANTIES IN THIS SCHEDULE ARE GIVEN SAVE TO THE EXTENT EXPRESSLY DISCLOSED
AND STATED TO THE CONTRARY IN THE ADMISSION DOCUMENT.

1.       GENERAL INFORMATION

1.1      All of the factual information  supplied by or on behalf of the Company
         to DDCF  and  DDCM  for  the  purposes  of or in  connection  with  the
         arrangements  contemplated  by this  agreement and the Placing is true,
         and accurate in all material  respects and all  forecasts and estimates
         supplied  by or on behalf of the  Company  have been made after due and
         proper  consideration,  are fair and  honest and  represent  reasonable
         expectations  based on facts  known or which,  on  reasonable  enquiry,
         should have been known to the Warrantors.

1.2      The information  contained in the application for Admission is true and
         accurate in all respects.

1.3      The  Due  Diligence  Reports  have  been  carefully  considered  by the
         Warrantors and:

         1.3.1    insofar as they contain statements of fact and, insofar as the
                  Warrantors  are  aware,  those  statements  of fact are  true,
                  accurate and not misleading in any material respect;

         1.3.2    none of the Warrantors  disagree in any material  respect with
                  the statements of opinion or belief  contained in them and the
                  opinions attributed to the Company and/or its Directors in the
                  Due Diligence  Reports are honestly held,  fairly based,  have
                  been  made on  reasonable  grounds  and are  capable  of being
                  properly supported; and

         1.3.3    there are no facts known to the Warrantors which have not been
                  taken into  account in the  preparation  of the Due  Diligence
                  Reports which would have a material effect on them.

2.       THE INVESTOR PRESENTATION AND THE ADMISSION DOCUMENT

2.1      Each  statement of fact contained in the Investor  Presentation  and/or
         the  Admission  Document is true,  accurate and not  misleading  in any
         material  respect.  Each estimate and  expression  of opinion,  belief,
         intention or expectation  contained in the Investor Presentation and/or
         Admission  Document is made on reasonable  grounds after due and proper
         consideration of all information currently available to the Warrantors,
         is honestly  held and fairly based upon facts  within the  knowledge of
         the Company and the Directors and can properly be supported.

2.2      There are no other facts or  considerations of which the Warrantors are
         aware,  or which they could on reasonable  enquiry have been made aware
         of, which are not disclosed in

                                       34
<PAGE>

         the Admission Document,  the omission of which would make any statement
         in the Admission  Document  misleading in any material respect or which
         would affect the import of any  information  contained in them or which
         in the context of the Placing would be material for disclosure to DDCF,
         DDCM or to prospective subscribers or purchasers of any of the Ordinary
         Shares.

2.3      The Admission Document contains all the particulars  required to comply
         with all statutory and other legal provisions of the United Kingdom and
         any other relevant jurisdiction,  the rules and requirements of the AIM
         Rules and, in particular (but without limitation), all such information
         as investors and their professional  advisers would reasonably require,
         and  reasonably  expect to find  there,  for the  purpose  of making an
         informed assessment of the assets and liabilities,  financial position,
         profits and losses,  and  prospects of the Company and of the Group and
         of the rights attaching to the Ordinary Shares.

2.4      All  statements  of  fact  contained  in  any  Supplementary  Admission
         Document will be true,  accurate and not  misleading and all forecasts,
         estimates and expressions of opinion,  belief, intention or expectation
         contained  in any  Supplementary  Admission  Document  will  be made on
         reasonable grounds after due and proper consideration, will be honestly
         held and fairly based and will be capable of being properly  supported.
         There will be no other facts known or which could on reasonable inquiry
         have been known to the  Director,  the omission of which would make any
         such  statement  or  expression  in any  such  Supplementary  Admission
         Document misleading in any material respect.

2.5      If any  Supplementary  Admission  Document is published,  the Admission
         Document,  together with the  Supplementary  Admission  Document,  will
         contain  all such  information  as  investors  and  their  professional
         advisers would reasonably require, and reasonably expect to find there,
         for the  purpose  of making an  informed  assessment  of the assets and
         liabilities,  financial  position,  profits and losses and prospects of
         the  company  and of the  Group  and of  the  rights  attaching  to the
         Ordinary Shares.

2.6      The  representations  and  warranties set out above in paragraphs 2.1 -
         2.4 of  this  Part  I of  schedule  2  were  true  in  relation  to the
         Pathfinder Admission Document on the date of its issue.

3.       FINANCIAL STATEMENTS AND INTERIM RESULTS

3.1      The Financial Statements:

         3.1.1    give a true and fair view of the profits (or losses) and state
                  of affairs of the Group as at the relevant  balance sheet date
                  and for the financial period ended on that date;

         3.1.2    accurately state the assets, liabilities (including contingent
                  liabilities  whether  for  taxation or  otherwise),  reserves,
                  profits  (or  losses),  cashflows  and state of affairs of the
                  Group  as at the  relevant  balance  sheet  date  and  for the
                  financial period ended on that date; and

         3.1.3    have  been  prepared  in  accordance  with  the  International
                  Financial  Reporting  Standards  and United  States  generally
                  accepted accounting principles.

                                       35
<PAGE>

3.2      The  profits  (or losses) of the Group as  disclosed  in the  Financial
         Statements  were not  affected by any matter  rendering  those  profits
         unusually high (or low).

3.3      The Interim  Results were  prepared with all due care and attention and
         have been properly  compiled on a basis  consistent with the accounting
         policies and  principles  applied in the  preparation  of the Financial
         Statements  for the financial  period which ended on the Accounts Date,
         except in so far as  inappropriate  in  respect of the  preparation  of
         interim  results  and  contained  a  true  and  fair  statement  of the
         turnover,  profit before tax and profit after tax of Turbotec Products,
         Inc. for the 9 months ended on that date.

3.4      The  pro-forma  statement  of net  assets  set out at  Part  VII of the
         Admission  Document has been properly  compiled on the basis set out in
         the Admission Document and such basis is consistent with the accounting
         policies of the Company and the  adjustments  are  appropriate  for the
         purposes of such pro forma net assets statement.

3.5      The Directors have  established  procedures  which provide a reasonable
         basis for them to make proper  judgements as to the financial  position
         and  prospects  of the Company and the Group and have had  explained to
         them by DDCF or another appropriate  professional adviser the nature of
         their  responsibilities  and  obligations  as  directors  of a  company
         admitted to trading on AIM under the AIM Rules.

4.       LONG FORM REPORT

4.1      All information  requested from the Company or any Group Company by the
         Reporting  Accountants  or by  DDCF  or by  DDCM  for  the  purpose  of
         preparing the Long Form Report has been supplied to them.

4.2      The Long Form Report has been  carefully  considered by the  Warrantors
         and:

         4.2.1    insofar as it contains  statements of fact and, insofar as the
                  Warrantors  are  aware,  those  statements  of fact are  true,
                  accurate and not misleading in any material respect;

         4.2.2    the expressions of opinion,  belief,  intention or expectation
                  contained  in the  Long  Form  Report  and  attributed  to the
                  Company  or the  Directors  (or any of them) have been made on
                  reasonable  grounds after due and proper  consideration of all
                  information   currently  available  to  the  Company  and  the
                  Directors,  are  honestly  held and  fairly  based  upon facts
                  within the  knowledge  of the  Company and the  Directors  and
                  capable of being properly supported; and

         4.2.3    there are no facts known to the Warrantors which have not been
                  taken into account in the  preparation of the Long Form Report
                  which could  reasonably be expected to have a material  effect
                  on it.

5.       WORKING CAPITAL AND INDEBTEDNESS

5.1      No Group  Company has any off balance  sheet  financing,  investment or
         liability material for disclosure in the Admission Document.

                                       36
<PAGE>

5.2      No Group Company has any indebtedness in respect of borrowed monies.

5.3      All information  requested from the Company or any Group Company by the
         Reporting  Accountants  or by DDCF for the  purpose  of  reviewing  the
         working capital requirements of the Group has been supplied to them.

5.4      The Working  Capital  Report has been properly  compiled  after due and
         careful enquiry and on the basis and assumptions stated in it which the
         Warrantors believe to be reasonable and:

         5.4.1    insofar as it contains  statements of fact, and insofar as the
                  Warrantors  are  aware,  those  statements  of fact are  true,
                  accurate and not misleading in any material respect;

         5.4.2    the expressions of opinion,  belief,  intention or expectation
                  contained in the Working  Capital Report and attributed to the
                  Company  or the  Directors  (or any of them) have been made on
                  reasonable  grounds  after due and proper  consideration,  are
                  honestly  held and fairly based and capable of being  properly
                  supported;

         5.4.3    there are no facts known to the Warrantors which have not been
                  taken into account in the  preparation of the Working  Capital
                  Report which could  reasonably  be expected to have a material
                  effect on it; and

         5.4.4    after due and careful enquiry,  the Group will have sufficient
                  working  capital for its present  and  reasonably  foreseeable
                  future requirements (including, at least, the next 12 months).

5.5      No  circumstances  have arisen nor, so far as the Warrantors are aware,
         are about to arise,  which would entitle any person to require  payment
         of any  indebtedness in respect of borrowed monies of any Group Company
         before its stated maturity and, without  prejudice to the generality of
         the foregoing,  no event has occurred and is subsisting  nor, so far as
         the  Company  or the  Directors  are  aware,  is about  to occur  which
         constitutes  or  would,  with  the  giving  of  notice,  constitute  an
         infringement  or default or entitle  termination or acceleration of any
         obligation under any agreement, undertaking,  instrument or arrangement
         to which any Group  Company is a party or by which it or any of them or
         any of their respective  properties,  revenues and assets are bound and
         which  would in any such case  have a  material  adverse  effect on the
         overall business,  assets, prospects or condition of the Group taken as
         a whole.

6.       TRADING SINCE THE ACCOUNTS DATE

         Save as referred to in the Admission Document, since the Accounts Date;

6.1      each Group  Company has carried on business in the  ordinary  and usual
         course and in all  material  respects in the same manner as before that
         date;

6.2      so far as the Company and the Directors  are aware,  there has not been
         any significant or material  adverse change in the financial or trading
         position of any Group Company;

                                       37
<PAGE>

6.3      there has been no  material  depletion  in the net  assets of any Group
         Company;

6.4      no contract or commitment (whether in respect of capital expenditure or
         otherwise)  has been  entered into by any Group  Company  which is of a
         long-term  or  unusual  nature or which  involves  an  obligation  of a
         material magnitude  (otherwise than in the ordinary course of business)
         and which is material for disclosure;

6.5      no dividends or other distributions have been declared, paid or made by
         the  Company  or any  Group  Company  (other  than  by a  wholly  owned
         subsidiary  to its  parent  undertaking  or those in  respect  of which
         provision  was  made  in the  latest  accounts  of the  relevant  Group
         Company);

6.6      no Group  Company  has  acquired or disposed of or agreed to acquire or
         dispose of any material  company,  business or any other material asset
         or assumed or acquired any material liabilities  (including  contingent
         liabilities) otherwise than in the ordinary course of business; and

6.7      there has been no material  loss or  interference  with the business of
         any Group Company from fire, explosion,  flood or for any other reason,
         whether or not  covered  by  insurance,  or from any labour  dispute or
         court or government action, order or decree.

7.       DIRECTORS

7.1      The Directors are, or following  Admission  becoming effective will be,
         all the  directors of the Company and there is no other person who is a
         shadow  director of the Company or any Group Company within the meaning
         of the Act.

7.2      The  Warrantors  are satisfied  that  procedures  exist which provide a
         reasonable basis for them to make proper judgements as to the financial
         position and prospects of the Group.

8.       LITIGATION AND INVESTIGATIONS

         No  Group  Company  nor any  person  for  whom any of them is or may be
         vicariously  liable  has  any  claims  outstanding  against  them or is
         engaged  in   litigation  or   arbitration   which,   individually   or
         collectively,  may have or have had during  the 12 months  prior to the
         date of this  agreement  a  material  adverse  effect on the  financial
         position of the Group or which,  individually or  collectively,  in the
         context of the Placing are material for  disclosure to a subscriber for
         and/or  purchaser of the Placing  Shares and, so far as the  Warrantors
         are aware, no such  litigation,  arbitration or similar  proceedings or
         any such  investigation or enquiry is pending or threatened and, nor so
         far as the  Company  is aware,  are there any  circumstances  which are
         likely to give rise to any such proceedings, investigation or enquiry.

9.       CONTRACTS/COMMITMENTS

9.1      No Group Company is a party to or subject to any contract or commitment
         of a nature which is onerous or unusual and which has been entered into
         other than in the ordinary course of business.

                                       38
<PAGE>

9.2      The  Warrantors  are  not  aware  of  the  invalidity  or  grounds  for
         rescission, avoidance or repudiation of any material agreement or other
         material  transaction  to which  any  Group  Company  is a party or any
         circumstances  likely to give rise to the same and no Group Company has
         received  notice of any  intention to terminate  any such  agreement or
         repudiate or disclaim any such  transaction  and, so far as the Company
         is  aware,  no  material  contract  or  arrangement  to which any Group
         Company is a party will be determined or adversely affected as a result
         of Admission and/or the Placing.

9.3      No  Group  Company  is a party  to any  restrictive  trading  or  other
         agreement or arrangement  which in any way  infringes,  or which has or
         should have been  registered  or notified  under UK  competition  laws,
         Article  81 or 82 of the  Treaty of Rome or any other  applicable  anti
         trust or anti monopoly legislation.

9.4      No Group  Company is  actually  or  contingently  liable as an original
         contracting  party to or as  guarantor  of any party  to, or  otherwise
         contractually  liable in respect of, any lease or leasehold property or
         licence connected with any such lease or leasehold  property other than
         the Property.

9.5      No Group  Company has entered into nor has it any  liability  under any
         guarantee,  indemnity or other  agreement to secure an  obligation of a
         third  party  (other  than  another  Group  Company)  under  which  any
         liability or contingent liability is outstanding.

10.      DIRECTORS' AND SHAREHOLDERS' INTERESTS

10.1     There are no contracts or  arrangements to which any Group Company is a
         party  and in which  any of the  Directors  is or has been  interested,
         whether  directly  or  indirectly  (save for the service  contracts  or
         letters of engagement  of the  Directors  which are in the agreed form)
         and which remain outstanding or unperformed in any respect.

10.2     There are no agreements or understandings  (whether legally enforceable
         or not) between any Group  Company and any person who is a  shareholder
         or the  beneficial  owner of any  interest in the share  capital of the
         Company or any Group  Company  relating to the  management of any Group
         Company's business, to the appointment or removal of its directors,  to
         the  ownership  or  transfer of  ownership  or the letting of any Group
         Company's assets, to the provision of finance, goods, services or other
         facilities to or by any Group Company save for the service contracts of
         the Directors which are in the agreed form.

10.3     There are no options or other  arrangements in force, and no person has
         claimed that there are options or arrangements in force, which require,
         whether  conditionally  or  unconditionally,  or  confer  any  right to
         require,  the issue of, or conversion of any security into, any shares,
         debentures or other  securities of any Group Company now or at any time
         after the date of this agreement.

11.      BUSINESS

         Each Group Company has been duly incorporated, has full corporate power
         and  authority to carry on its  activities  in the  ordinary  course of
         business  and  has  obtained   all  material   licences,   permissions,
         authorisations  and  consents  required  for  the  carrying  on of  its
         business and such licences,  permissions,  authorisations  and consents
         are in full force

                                       39
<PAGE>

         and  effect  and,  so far as the  Warrantors  are  aware,  there are no
         circumstances  which indicate that any of such  licences,  permissions,
         authorisations  or  consents  which is  material  in the context of the
         relevant  Group  Company's  business  as a whole will be revoked or not
         renewed,  in whole or in part,  in the ordinary  course of events;  and
         each Group Company has complied in all material respects with all legal
         and other requirements applicable to its business.

12.      PROPERTY

         The only  interests of the Group in any real  property are as stated in
         the Admission Document.

13.      ENVIRONMENT

13.1     For the purposes of this paragraph:

         "DANGEROUS SUBSTANCE"      means any waste, substance (whether in solid
                                    or liquid or gaseous  form and either  alone
                                    or in  combination  with any  other,  waste,
                                    substance,  or  article)  which is likely to
                                    cause   harm   to   human   health   or  the
                                    environment;

         "ENVIRONMENTAL LAW"        means  all  statutes,  common  law,  bylaws,
                                    regulations,  directives, codes of practice,
                                    circulars,  guidance  notices  and the  like
                                    concerning the protection of the environment
                                    or the generation, transportation,  storage,
                                    treatment    or   disposal   of    Dangerous
                                    Substances; and

         "ENVIRONMENTAL LICENCE"    means any  permit,  licence,  authorisation,
                                    consent or other  approval  required  by any
                                    Environmental Law.

13.2     Each  Group  Company  is and has  been in  compliance  in all  material
         respects  with all  applicable  Environmental  Law and the terms of all
         Environmental Licences. No Group Company has received written notice or
         communication  that it may be in violation of any  Environmental Law or
         that any  Environmental  Licence  may be  subject  to  modification  or
         revocation.  No  Group  Company  is or  has  been,  or is as far as the
         Company or the  Executive  Directors  are aware  likely to become,  the
         subject of any material litigation or any material judgement concerning
         any Environmental Law or Environmental Licence.

14.      TAX

14.1     Each Group Company has, within any applicable time limit, duly made all
         returns,  given all notices and supplied all other information required
         to be made, given or supplied to any applicable Tax authority; all such
         returns,  notices and information  were and remain true and accurate in
         all  material  respects  and were made on a proper basis to the best of
         the Directors' knowledge.

14.2     No Group  Company is involved in any  dispute  with,  or subject to any
         investigation  by, any Tax  authority and so far as the Company and the
         Warrantors  are  aware  there are no facts or  circumstances  which are
         likely to give rise to any such dispute or investigation.

                                       40
<PAGE>

14.3     Each  payment  made by any Group  Company to any person  required to be
         made under  deduction  of Tax has been so made after  deduction of such
         Tax and such Group Company has,  where  appropriate,  duly accounted to
         the relevant Tax authority for such Tax.

14.4     All national  insurance  contributions  and sums due and payable by any
         Group Company in respect of the  employment or engagement of any person
         have been paid to all appropriate Tax authorities.

14.5     Proper provision or reserve is made in the Financial Statements for all
         Tax liable to be assessed on the Group  Companies or for which it is or
         may become  accountable in respect of any period ended on or before the
         Interim Accounts Date.

14.6     All  clearances  and  consents  required  to be  obtained  from any Tax
         authority  by any Group  Company in the last three  years were based on
         full  and  accurate  disclosure  of all  the  facts  and  circumstances
         material to the decision of the relevant Tax authority.

14.7     All documents in the possession of a Group Company or to the production
         of which it is entitled and which attract stamp or transfer duty in the
         United Kingdom or elsewhere have been properly stamped.

14.8     All Tax for which each  member of the Group is liable has been paid and
         accounted for to the relevant Tax authority.

15.      SHARE CAPITAL

15.1     All sums due in  respect  of the issued  share  capital of the  Company
         (including  the Sale  Shares)  have  been paid to and  received  by the
         Company.

15.2     The Company and the Directors  had all  necessary  powers to create and
         allot the Ordinary Shares  (including the Sale Shares) and the creation
         and the  allotment of those shares  complied  with the  Memorandum  and
         Articles of  Association  of the Company,  the Act,  FSMA and all other
         applicable  laws,  rules and regulations of the United Kingdom and with
         all  agreements  to which the  Company is a party or by which it or its
         property is bound and no person has the right (whether  exercisable now
         or in the  future  and  whether  contingent  or not)  to  call  for the
         allotment,  conversion,  issue,  sale or  transfer of any share or loan
         capital or any other  security  giving rise to a right over the capital
         of any Group  Company  under any option or other  agreement  (including
         conversion rights and rights of pre-emption).

15.3     There are no  options or other  arrangements  in force  which  require,
         whether  conditionally  or  unconditionally,  or  confer  any  right to
         acquire,  the  issue of any  shares  or other  securities  of any Group
         Company now or at any time after the date of this Agreement.

15.4     No Group  Company has at any time  purchased its own shares or redeemed
         or  forfeited  any  shares,  or agreed to do so, or  granted  an option
         whereby it might become liable to do so.

                                       41
<PAGE>

15.5     No share in the  capital of any Group  Company  has been  allotted at a
         discount or otherwise than as fully paid.

15.6     The  allotment  of  Ordinary  Shares to TDYT  under the Share  Exchange
         Agreement  was proper and valid,  credited  as fully paid and  complied
         with the memorandum  and Articles of  Association  of the Company,  the
         Act, FSMA and all other  applicable  laws, rules and regulations of the
         United  Kingdom and with all agreements to which the Company is a party
         or by which it or its property is bound.

16.      SUBSCRIPTION SHARES

16.1     The allotment and issue of the  Subscription  Shares in accordance with
         this agreement,  the payment by the Company of the fees provided for in
         clause 12.1 and the publication  and despatch of the Placing  Documents
         will comply with the  Memorandum  and  Articles of  Association  of the
         Company, the Act, FSMA, the AIM Rules, the rules and regulations of the
         London  Stock  Exchange  and  all  other  applicable  laws,  rules  and
         regulations of the United Kingdom, United States and any other relevant
         jurisdiction,  and with all agreements to which each Group Company is a
         party or by which it or its property is bound.

16.2     The Company's  performance of its obligations under this agreement will
         not infringe any borrowing  limits or  restrictions or the terms of any
         contract,   obligations   or   commitment   by  the   Company  and  all
         authorisations,  approvals,  consents  and  licences  required  by  the
         Company  for  the  entering  into  of  this  agreement  (other  than as
         contemplated  in this agreement or in the Placing  Documents) have been
         unconditionally obtained and are in full force and effect.

16.3     The  Company and the  Directors  have all  necessary  powers to create,
         allot  and  issue the  Subscription  Shares  and to pay the fees in the
         manner  proposed and to enter into this agreement  without any sanction
         or consent by members of any Group  Company or any class of them or any
         other person and there are no other consents, authorisations, approvals
         or licences required by the Company for the entering into or completion
         of this agreement which have not been unconditionally  obtained and are
         in full force and effect.

17.      SALE SHARES

17.1     The sale of the Sale Shares in accordance  with this  agreement and the
         payment by TDYT of the fees  provided  for in clause  12.3 will  comply
         with the Memorandum  and Articles of  Association  of the Company,  the
         Act, FSMA, the AIM Rules, the rules and regulations of the London Stock
         Exchange and all other  applicable  laws,  rules and regulations of the
         United Kingdom, the United States and any other relevant  jurisdiction,
         and with all  agreements to which TDYT is a party or by which it or its
         property is bound.

17.2     The sale of Sale Shares will not, and is not likely to,  conflict  with
         or result in a breach of or constitute a default  under any  agreement,
         arrangement or instrument to which any Group Company is now a party nor
         give rise to any obligation  under any such  agreement,  arrangement or
         instrument which is inconsistent  with the acquisition by any purchaser
         or subscriber (as the case may be) of valid  unencumbered  title to any
         such Sale Shares.

                                       42
<PAGE>

18.      INSOLVENCY

         No  order  has  been  made or  petition  or  application  presented  or
         resolution  passed for the  winding-up  of any Group  Company or for an
         administration  order in relation to any Group Company and no notice of
         intention to appoint or notice of appointment of an  administrator  has
         been presented or served in respect of any Group Company.  No distress,
         execution or other  process has been levied on any of the assets of any
         Group  Company  and  neither  is any member of the Group  insolvent  or
         unable  to pay  its  debts  for  the  purposes  of  section  123 of the
         Insolvency Act 1986, no administrative receiver or receiver and manager
         has been  appointed  by any person  over the  business or assets of any
         Group  Company or any part of its  business  or assets and there are no
         unfulfilled  or  unsatisfied  judgements  or court  orders  outstanding
         against any Group Company.

19.      EMPLOYMENT

19.1     Save as are not  material in the context of the  Placing,  there are no
         amounts  owing or promised to any present or former  directors,  senior
         management or employees of any Group  Company  other than  remuneration
         accrued due or for reimbursement of business expenses,  no directors or
         senior  management  employees  of any Group  Company have given or been
         given notice terminating their contracts of employment.

19.2     Save as are not material in the context of the Placing,  or save to the
         extent to which provision or allowance has been made in the Accounts or
         save as disclosed in the Due Diligence  Reports,  no liability has been
         incurred by any Group  Company  for breach of any  contract of service,
         contract for services or consultancy agreement, for redundancy payments
         (including   protective   awards)  or  for  compensation  for  wrongful
         dismissal  or unfair  dismissal or for failure to comply with any order
         for the  reinstatement  or  re-engagement  of any  employee  or for the
         actual or proposed termination or suspension of employment or variation
         of any terms of  employment  of any  present or former  employee of any
         Group Company.

19.3     Save as is not material in the context of the Placing, no Group Company
         has any  obligation,  or could become liable,  to provide or contribute
         towards pension  arrangements  for its directors or employees or former
         directors or  employees  other than those  disclosed  in the  Admission
         Document.

20.      INTELLECTUAL PROPERTY RIGHTS

20.1     The Group is either the sole legal and  beneficial  owner free from all
         encumbrances of the intellectual  property rights which it uses, or the
         Group has a valid licence to use all intellectual property rights which
         it uses and such  intellectual  property rights are valid,  enforceable
         and  subsisting  and nothing has been done or omitted to be done by the
         Company which may cause any of it to cease to be so.

20.2     All reasonable  steps have been taken for the diligent  maintenance and
         protection of the Group's intellectual property rights. All application
         and  renewal  fees and  other  costs and  charges  in  relation  to the
         maintenance   of  all   registrations   and  the   prosecution  of  all
         applications  in relation to the Group's  intellectual  property rights
         and all other  payments  due and payable by the Group in respect of the
         Group's  intellectual  property  rights have

                                       43
<PAGE>

         been paid at the due time. All other steps for the diligent maintenance
         and prosecution of such  registrations and applications have been taken
         in a timely manner.

20.3     The Group's intellectual  property rights comprise all the intellectual
         property rights  necessary to carry on the business as conducted by the
         Group.

20.4     The Group has received no notice  during the 15 years prior to the date
         of this Agreement that any activities,  products, services or processes
         of the Group or the Group's  intellectual  property rights from time to
         time infringe or have infringed any  intellectual  property rights of a
         third party or involve or have involved the  unlicensed  use of a third
         party's  confidential  information  or  give  or  have  given  rise  to
         liability to pay compensation.

21.      DUE DILIGENCE REPORTS

21.1     All information requested by Nabarro Nathanson and/or Seyfarth Shaw LLP
         (as the case may be) has been  supplied  by the TDYT and the Company to
         Nabarro Nathanson and/or Seyfarth Shaw LLP for the purpose of preparing
         the Due Diligence  Reports and all such information is, and was when so
         supplied (save to the extent subsequently  superseded),  (so far as the
         Warrantors are aware),  true and accurate in all material  respects and
         is not (whether by reason of omission or  otherwise)  misleading in any
         material respect.

21.2     So far as the Company, TDYT and the Executive Directors are aware:

         21.2.1   all agreements material to the Company or to Turbotec Inc were
                  provided  to  Seyfarth  Shaw for review for the purpose of its
                  Due Diligence Report;

         21.2.2   the Due  Diligence  Report  produced by Seyfarth Shaw does not
                  omit to deal with any matter  material to  Turbotec  Products,
                  Inc. in the context of the Placing and/or Admission.

22.      REORGANISATION

22.1     The  Due  Diligence  Reports  accurately  and  correctly  describe  the
         Reorganisation.  The Reorganisation was undertaken with due care taking
         into account all material  accounting,  legal and taxation advice which
         TDYT and the Group received in connection with the Reorganisation.

22.2     So far as the Company, TDYT and the Executive Directors are aware:

         22.2.1   all  agreements   material  to  the  Company  or  to  Turbotec
                  Products,  Inc were  provided to Seyfarth  Shaw for review for
                  the purpose of its Due Diligence Report; and

         22.2.2   the Due  Diligence  Report  produced by Seyfarth Shaw does not
                  omit to deal with any matter  material to  Turbotec  Products,
                  Inc in the context of the Placing and/or Admission.

22.3     The  Reorganisation  complied  with and  continues  to comply  with all
         applicable  laws and  regulations  and with all  agreements,  deeds and
         instruments  to which  each Group  Company  is party and all  consents,
         permits and authorisations  necessary or desirable for

                                       44
<PAGE>

         the  carrying  out of the  Reorganisation  were  obtained  prior to its
         completion and remain valid and subsisting.

23.      REGULATION

         Neither  the making of the  application  for  Admission,  the  Placing,
         Admission  or any  other  act,  matter  or thing  provided  for in this
         agreement:

23.1     requires  any person to secure the  permission,  consent or approval of
         any governmental,  quasi-governmental,  statutory or regulatory body or
         institution or a court in the United States (a "RELEVANT AUTHORITY");

23.2     will  infringe  any  United  States  federal  or  state  law,  rule  or
         regulation;

23.3     requires any person to make any filing with a Relevant Authority now or
         in the future;

23.4     will cause the  Company to be subject to any United  States  securities
         laws and/or the provisions of Sarbannes-Oxley Act 2002.

24.      VERIFICATION

24.1     Verification  has been  made by the  Directors  of all  material  facts
         stated,  information  given  and  opinions  expressed  in  the  Placing
         Documents.

24.2     The replies to the Verification Questions:

         24.2.1   have been prepared or approved by persons  having  appropriate
                  knowledge  and  responsibility  to  enable  them  properly  to
                  provide such replies; and

         24.2.2   have been given in good faith.

                                       45
<PAGE>

                                     PART II

Each Director severally warrants that:

(a)      he has  provided  DDCF and DDCM in writing with all  information  which
         might  reasonably be considered  material for  disclosure in respect of
         himself in the Placing Documents including, without limitation any such
         information as relates to his prior  employment and other  positions or
         offices he has held and past or present business  interests  (including
         an interest in any company,  partnership or organisation  which carries
         on a business similar to that of the Company or any member of the Group
         and an interest in any company,  partnership or organisation  which has
         entered into any contract or arrangement with the Company or any member
         of the Group);

(b)      the answers given to DDCF and DDCM in his director's  questionnaire and
         information  in  his  declaration  of  business   interests  and  share
         interests  are true and  accurate and no further  information  has been
         withheld which would make such information misleading; and

(c)      all statements of fact in the Placing Documents and any other documents
         relating to the Placing with respect to himself are true,  accurate and
         not misleading.

                                    PART III

TDYT represents and warrants:

(a)      that it has,  and that up to and  including  the  moment  when  Placees
         unconditionally  acquire Sale Shares in accordance  with the provisions
         of this agreement,  it will continue to have,  unencumbered  beneficial
         ownership of, and all necessary  title,  power and authority to sell in
         accordance with this Agreement, the Sale Shares;

(b)      the Sale Shares are fully paid;

(c)      that all statements of fact in the Admission  Document relating to TDYT
         are true, accurate and not misleading.

                                       46
<PAGE>

                                   SCHEDULE 3

                         CERTIFICATE UNDER CLAUSE 4.2.6

                           [LETTERHEAD OF THE COMPANY]

To:      Dawnay, Day Corporate Finance Limited
         15 Grosvenor Gardens
         London, SW1W 0BD

To:      Dawnay, Day Capital Markets
         (a division of Dawnay, Day Brokers Limited)
         15 Grosvenor Gardens
         London, SW1W 0BD

Date:    [    ] 2006

Dear Sirs

              PLACING OF 5,594,366 ORDINARY SHARES (THE "PLACING")

We refer to the  Placing  Agreement  dated O 2006  between  us  relating  to the
Placing (the "Agreement").  Words and expressions  defined in the Agreement have
the same meanings in this letter.

We confirm to you that:

(a)      we are not  aware of any  circumstances  giving  rise or likely to give
         rise to a right for DDCF or DDCM to terminate its obligations  pursuant
         to clause 17.1 of this agreement in accordance with its provisions;

(b)      each of the Conditions  referred to in clause 4 of the Agreement  (save
         for Conditions  4.2.3 to 4.2.5) has been  fulfilled in accordance  with
         its terms;

(c)      none of the Warranties,  representations or undertakings referred to in
         clause 14 of the  agreement  was  breached or untrue or  inaccurate  or
         misleading  in any  respect  when made and none of such  warranties  or
         undertakings would be breached or untrue or inaccurate or misleading in
         any  respect  were they to be repeated  by  reference  to the facts and
         circumstances  subsisting at the date of this letter, which in any such
         case is material in the context of the Placing.

                                       47
<PAGE>

Yours faithfully

.................................................
director, duly authorised,
for and on behalf of
TURBOTEC PRODUCTS PLC

.................................................
SUNIL RAINA

.................................................
ROBERT LIEBERMAN

.................................................
ANTHONY MIRABELLA

.................................................
Officer, duly authorised for and on behalf of
THERMODYNETICS, INC.

                                       48
<PAGE>

                                   SCHEDULE 4

                        DOCUMENTS TO BE DELIVERED TO DDCF

The Company shall  deliver the following  documents to DDCF, in each case in the
agreed form and by the times specified below:

References  below to "certified  copies" means copies certified by any Director,
or by the secretary of the Company, or its legal advisers.

Where  any  document  referred  to in this  schedule  is  signed  by an agent or
attorney, the Company must also provide a certified copy of his authority.

1.       ON THE EXECUTION OF THIS AGREEMENT

APPLICATION FOR ADMISSION/ADMISSION DOCUMENT

1.1      Three certified copies of the application for Admission.

1.2      Three copies of the Admission  Document  signed by or on behalf of each
         Director.

1.3      Three certified  copies of each of the  Pre-Admission  Announcement and
         the Press Announcement.

1.4      Any other document  required by the London Stock Exchange in connection
         with the application for Admission which is not required from DDCF.

FINANCIAL DOCUMENTATION

1.5      Three  original  copies of the Long Form Report  prepared and signed by
         the Reporting Accountants.

1.6      Three original copies of the Short Form Reports  prepared and signed by
         the Reporting Accountants.

1.7      Three  original  copies of the  Working  Capital  Report  signed by the
         Reporting Accountants.

1.8      Three original  copies of the working  capital comfort letter signed by
         or on behalf of the Board.

1.9      Three original copies of the comfort  letters  addressed to the Company
         and DDCF from the Reporting Accountants with respect to:

                  1.9.1    working capital and indebtedness;

                  1.9.2    the pro forma  statement of net assets set out in the
                           Admission Document;

                  1.9.3    taxation statements in the Admission Document;

                  1.9.4    their responsibilities as reporting accountants under
                           the AIM Rules and  confirming  that  these  have been
                           complied with;

                                       49
<PAGE>

                  1.9.5    the  accuracy  of the  financial  information  in the
                           Admission  Document  (insofar  as  the  same  is  not
                           contained within the Short Form Report);

                  1.9.6    the no significant  change statement in the Admission
                           Document.

1.10     The Reporting  Accountants'  written consent to their name appearing in
         the  Admission  Document  in the form  and  context  in which  they are
         included.

1.11     Letters signed by the Company and the Reporting Accountants in relation
         to DDCF's  declaration  in accordance  with Schedule 6 of the AIM Rules
         dated the date of Admission.

LEGAL DOCUMENTATION

1.12     The Due Diligence  Reports from Seyfarth Shaw LLP and Nabarro Nathanson
         and a legal  opinion  letter  addressed to the  Company,  DDCF and DDCM
         signed by Seyfarth Shaw LLP.

1.13     The Verification Notes signed by or on behalf of each of the Directors.

CORPORATE DOCUMENTATION

1.14     Three certified copies of the Company's  certificate of  incorporation,
         any  certificates of  incorporation  on change of name, any certificate
         confirming the Company's  re-registration  as a public limited  company
         and of its memorandum and Articles of Association.

1.15     Three copies of the form of definitive share certificate.

DOCUMENTATION RELATING TO THE DIRECTORS

1.16     Certified copies of each director's  questionnaire completed by all the
         Directors.

1.17     Certified  copies  of  each  Director's   service   contract/letter  of
         appointment.

1.18     An original  letter  addressed  to the Company and to DDCF from each of
         the Directors  accepting  responsibility  for the Admission Document in
         the terms set out in the Admission Document.

1.19     A certified copy of the power of attorney of each of the Directors.

SHAREHOLDER/BOARD MINUTES

1.20     Three  certified  copies of the  minutes of a meeting of the members of
         the Company  giving effect to the capital  reorganisation  described in
         paragraph 4 of Part VIII of the Admission Document.

1.21     Three  certified  copies of the  minutes  of a meeting  of the Board at
         which:

                  1.21.1   this   agreement  and  all  related   documents  were
                           approved and execution of them was authorised;

                                       50
<PAGE>

                  1.21.2   the form of the  Admission  Document was approved and
                           publication of it and other documents  connected with
                           the Placing was authorised;

                  1.21.3   the  making  of  an  application  for  Admission  was
                           approved;

                  1.21.4   all  other  steps  to be  taken  by  the  Company  in
                           connection with the Placing were authorised.

MISCELLANEOUS AGREEMENTS

1.22     Certified  copies  of each of the  documents  stated  in the  Admission
         Document as being available for inspection.

1.23     Three certified copies of the Registrar's Agreement.

1.24     Two original  counterparts of a nominated  adviser and broker agreement
         duly executed by the Company and the Directors.

1.25     Two original counterparts of the Share Exchange Agreement duly executed
         by the Company and TDYT.

1.26     Two original  counterparts of the Relationship  Agreement duly executed
         by the Company, TDYT and the TDYT Directors.

1.27     The letter agreement referred to in clause 4.2.9 of this Agreement.

2. BY 3.00 P.M. ON THE DAY PRIOR TO ADMISSION

         Three  certified  copies of the  minutes of a meeting of the  Directors
         and/or a duly authorised committee of the Directors at which:

                  2.1.1    the Subscription  Shares were conditionally  allotted
                           in accordance with clause 11.1 of this agreement;

                  2.1.2    it was  confirmed  that the  Company was not aware of
                           any  circumstances  giving  rise to or likely to give
                           rise to a right for DDCF to terminate its obligations
                           under  this  agreement  pursuant  to  clause  17.1 in
                           accordance  with its provisions and each Director was
                           authorised   to  sign   and   deliver   to  DDCF  the
                           certificate  referred  to in  clause  4.2.5  of  this
                           agreement;

                  2.1.3    it was noted  that no  requirement  had  arisen for a
                           Supplementary  Admission  Document  to be  issued  in
                           accordance with the AIM Rules.

2.2      The legal opinion letter addressed to the Company, DDCF and DDCM signed
         by Seyfarth Shaw LLP.

2.3      Such other information as DDCF shall reasonably request of satisfaction
         of each of the Conditions.

3.       BY 12 NOON ON THE BUSINESS DAY FOLLOWING ADMISSION BECOMING EFFECTIVE

                                       51
<PAGE>

         If relevant, a statement of the number of securities which were in fact
         issued and,  where  different from the number which were the subject of
         the  application for Admission,  the aggregate  number of securities of
         that class in issue.

                                       52
<PAGE>

EXECUTED and DELIVERED              )
as a Deed by TURBOTEC PRODUCTS      )        /s/ ...............................
PLC acting by two directors or a    )
director and the secretary          )        /s/ ...............................

EXECUTED and DELIVERED              )
as a Deed by SUNIL RAINA            )
in the presence of                  )        /s/ ...............................

Name: .......................................
Address: ....................................

Occupation: .................................

EXECUTED and DELIVERED              )
as a Deed by ROBERT IRA             )
LIEBERMAN                           )
in the presence of                  )        /s/ ...............................

Name: .......................................
Address: ....................................

Occupation: .................................

EXECUTED and DELIVERED              )
as a Deed by ANTHONY CHARLES        )
MIRABELLA                           )
in the presence of                  )        /s/ ...............................

Name: .......................................

Address: ....................................

Occupation: .................................

                                       53
<PAGE>

EXECUTED and DELIVERED              )
as a Deed by THERMODYNETICS, INC.   )
acting by:                          )

                                             THERMODYNETICS, INC.

                                             By: /s/ ...........................

                                                 ROBERT A. LERMAN
                                                 PRESIDENT

EXECUTED and DELIVERED              )
as a Deed by DAWNAY, DAY            )        /s/ ...............................
CORPORATE FINANCE LIMITED           )
acting by two directors or a        )
director and the secretary          )        /s/ ...............................

EXECUTED and DELIVERED              )
as a Deed by DAWNAY, DAY CAPITAL    )        /s/ ...............................
MARKETS (A DIVISION OF DAWNAY,      )
DAY BROKERS LIMITED) acting by      )
two directors or a director and the )
secretary                           )        /s/ ...............................

                                       54

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