Document:

MSTI
      HOLDINGS, INC.

     

    DIRECTOR
      AND OFFICER INDEMNIFICATION AGREEMENT

     

    This
      Director and Officer Indemnification Agreement, dated as of May ___, 2007 (this
      “Agreement”),
      is
      made by and between MSTI Holding, Inc., a Delaware corporation (the “Company”),
      and
      _______________ (the “Indemnitee”).

     

    RECITALS:

     

    A. Section
      141 of the Delaware General Corporation Law provides that the business and
      affairs of a corporation shall be managed by or under the direction of its
      board
      of directors.

     

    B. By
      virtue
      of the managerial prerogatives vested in the directors and officers of a
      Delaware corporation, directors and officers act as fiduciaries of the
      corporation and its stockholders.

     

    C. Thus,
      it
      is critically important to the Company and its stockholders that the Company
      be
      able to attract and retain the most capable persons reasonably available to
      serve as directors and officers of the Company.

     

    D. In
      recognition of the need for corporations to be able to induce capable and
      responsible persons to accept positions in corporate management, Delaware law
      authorizes (and in some instances requires) corporations to indemnify their
      directors and officers, and further authorizes corporations to purchase and
      maintain insurance for the benefit of their directors and officers.

     

    E. The
      Delaware courts have recognized that indemnification by a corporation serves
      the
      dual policies of (1) allowing corporate officials to resist unjustified
      lawsuits, secure in the knowledge that, if vindicated, the corporation will
      bear
      the expense of litigation, and (2) encouraging capable women and men to serve
      as
      corporate directors and officers, secure in the knowledge that the corporation
      will absorb the costs of defending their honesty and integrity.

     

    F.
       The
      number of lawsuits challenging the judgment and actions of directors and
      officers of Delaware corporations, the costs of defending those lawsuits and
      the
      threat to personal assets have all materially increased over the past several
      years, chilling the willingness of capable women and men to undertake the
      responsibilities imposed on corporate directors and officers.

     

    G. Recent
      federal legislation and rules adopted by the Securities and Exchange Commission
      and the national securities exchanges have exposed such directors and officers
      to new and substantially broadened civil liabilities.

     

    H. Under
      Delaware law, a director’s or officer’s right to be reimbursed for the costs of
      defense of criminal actions, whether such claims are asserted under state or
      federal law, does not depend upon the merits of the claims asserted against
      the
      director or officer and is separate and distinct from any right to
      indemnification the director may be able to establish.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    I. Indemnitee
      is, or will be, a director and/or officer of the Company and his or her
      willingness to serve in such capacity is predicated, in substantial part, upon
      the Company’s willingness to indemnify him or her in accordance with the
      principles reflected above, to the fullest extent permitted by the laws of
      the
      State of Delaware, and upon the other undertakings set forth in this
      Agreement.

     

    J. Therefore,
      in recognition of the need to provide Indemnitee with substantial protection
      against personal liability, in order to procure Indemnitee’s continued service
      as a director and/or officer of the Company and to enhance Indemnitee’s ability
      to serve the Company in an effective manner, and in order to provide such
      protection pursuant to express contract rights (intended to be enforceable
      irrespective of, among other things, any amendment to the Company’s certificate
      of incorporation or bylaws (collectively, the “Constituent
      Documents”),
      any
      change in the composition of the Company’s Board of Directors (the “Board”)
      or any
      change-in-control or business combination transaction relating to the Company),
      the Company wishes to provide in this Agreement for the indemnification and
      advancement of Expenses to Indemnitee on the terms, and subject to the
      conditions, set forth in this Agreement.

     

    K. In
      light
      of the considerations referred to in the preceding recitals, it is the Company’s
      intention and desire that the provisions of this Agreement be construed
      liberally, subject to their express terms, to maximize the protections to be
      provided to Indemnitee hereunder.

     

    AGREEMENT:

     

    NOW,
      THEREFORE, the parties hereby agree as follows:

     

    1. Certain
      Definitions.
      In
      addition to terms defined elsewhere herein, the following terms have the
      following meanings when used in this Agreement with initial capital
      letters:

     

    “Change
      in Control”
      shall
      have occurred at such time, if any, as Incumbent Directors cease for any reason
      to constitute a majority of Directors. For purposes of this Section 1(a),
“Incumbent
      Directors”
      means
      the individuals who, as of the date hereof, are Directors of the Company and
      any
      individual becoming a Director subsequent to the date hereof whose election,
      nomination for election by the Company’s stockholders, or appointment, was
      approved by a vote of at least a majority of the then Incumbent Directors
      (either by a specific vote or by approval of the proxy statement of the Company
      in which such person is named as a nominee for director, without objection
      to
      such nomination); provided,
      however,
      that an
      individual shall not be an Incumbent Director if such individual’s election or
      appointment to the Board occurs as a result of an actual or threatened election
      contest (as described in Rule 14a-12(c) of the Securities Exchange Act of 1934,
      as amended) with respect to the election or removal of directors or other actual
      or threatened solicitation of proxies or consents by or on behalf of a Person
      other than the Board.

     

    “Claim”
      means
      (i) any threatened, asserted, pending or completed claim, demand, action, suit
      or proceeding, whether civil, criminal, administrative, arbitrative,
      investigative or other, and whether made pursuant to federal, state or other
      law; and (ii) any inquiry or investigation, whether made, instituted or
      conducted by the Company or any other Person, including, without limitation,
      any
      federal, state or other governmental entity, that Indemnitee reasonably
      determines might lead to the institution of any such claim, demand, action,
      suit
      or proceeding. For the avoidance of doubt, the Company intends indemnity to
      be
      provided hereunder in respect of acts or failure to act prior to, on or after
      the date hereof. 

     

    
      
         

      

      
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    “Controlled
      Affiliate”
      means
      any corporation, limited liability company, partnership, joint venture, trust
      or
      other entity or enterprise, whether or not for profit, that is directly or
      indirectly controlled by the Company. For purposes of this definition,
“control”
      means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of an entity or enterprise, whether
      through the ownership of voting securities, through other voting rights, by
      contract or otherwise; provided
      that
      direct or indirect beneficial ownership of capital stock or other interests
      in
      an entity or enterprise entitling the holder to cast 15% or more of the total
      number of votes generally entitled to be cast in the election of directors
      (or
      persons performing comparable functions) of such entity or enterprise shall
      be
      deemed to constitute control for purposes of this definition. 

     

    “Disinterested
      Director”
      means a
      director of the Company who is not and was not a party to the Claim in respect
      of which indemnification is sought by Indemnitee. 

     

    “Expenses”
      means
      attorneys’ and experts’ fees and expenses and all other costs and expenses paid
      or payable in connection with investigating, defending, being a witness in
      or
      participating in (including on appeal), or preparing to investigate, defend,
      be
      a witness in or participate in (including on appeal), any Claim. 

     

    “Indemnifiable
      Claim”
      means
      any Claim based upon, arising out of or resulting from (i) any actual, alleged
      or suspected act or failure to act by Indemnitee in his or her capacity as
      a
      director, officer, employee or agent of the Company or as a director, officer,
      employee, member, manager, trustee or agent of any other corporation, limited
      liability company, partnership, joint venture, trust or other entity or
      enterprise, whether or not for profit, as to which Indemnitee is or was serving
      at the request of the Company, (ii) any actual, alleged or suspected act or
      failure to act by Indemnitee in respect of any business, transaction,
      communication, filing, disclosure or other activity of the Company or any other
      entity or enterprise referred to in clause (i) of this sentence, or (iii)
      Indemnitee’s status as a current or former director, officer, employee or agent
      of the Company or as a current or former director, officer, employee, member,
      manager, trustee or agent of the Company or any other entity or enterprise
      referred to in clause (i) of this sentence or any actual, alleged or suspected
      act or failure to act by Indemnitee in connection with any obligation or
      restriction imposed upon Indemnitee by reason of such status. In addition to
      any
      service at the actual request of the Company, for purposes of this Agreement,
      Indemnitee shall be deemed to be serving or to have served at the request of
      the
      Company as a director, officer, employee, member, manager, trustee or agent
      of
      another entity or enterprise if Indemnitee is or was serving as a director,
      officer, employee, member, manager, agent, trustee or other fiduciary of such
      entity or enterprise and (i) such entity or enterprise is or at the time of
      such
      service was a Controlled Affiliate, (ii) such entity or enterprise is or at
      the
      time of such service was an employee benefit plan (or related trust) sponsored
      or maintained by the Company or a Controlled Affiliate, or (iii) the Company
      or
      a Controlled Affiliate (by action of the Board, any committee thereof or the
      Company’s Chief Executive Officer (“CEO”) (other than as the CEO him or
      herself)) caused or authorized Indemnitee to be nominated, elected, appointed,
      designated, employed, engaged or selected to serve in such
      capacity.

     

    
      
         

      

      
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    “Indemnifiable
      Losses”
      means
      any and all Losses relating to, arising out of or resulting from any
      Indemnifiable Claim; provided,
      however,
      that
      Indemnifiable Losses shall not include Losses incurred by Indemnitee in respect
      of any Indemnifiable Claim (or any matter or issue therein) as to which
      Indemnitee shall have been adjudged liable to the Company, unless and only
      to
      the extent that the Delaware Court of Chancery or the court in which such
      Indemnifiable Claim was brought shall have determined upon application that,
      despite the adjudication of liability but in view of all the circumstances
      of
      the case, Indemnitee is fairly and reasonably entitled to indemnification for
      such Expenses as the court shall deem proper. 

     

    “Independent
      Counsel”
      means a
      nationally recognized law firm, or a member of a nationally recognized law
      firm,
      that is experienced in matters of Delaware corporate law and neither presently
      is, nor in the past five years has been, retained to represent: (i) the Company
      (or any subsidiary) or Indemnitee in any matter material to either such party
      (other than with respect to matters concerning the Indemnitee under this
      Agreement, or of other indemnitees under similar indemnification agreements)
      or
      (ii) any other named (or, as to a threatened matter, reasonably likely to be
      named) party to the Indemnifiable Claim giving rise to a claim for
      indemnification hereunder. Notwithstanding the foregoing, the term “Independent
      Counsel” shall not include any person who, under the applicable standards of
      professional conduct then prevailing, would have a conflict of interest in
      representing either the Company or Indemnitee in an action to determine
      Indemnitee’s rights under this Agreement. 

     

    “Losses”
      means
      any and all Expenses, damages, losses, liabilities, judgments, fines, penalties
      (whether civil, criminal or other) and amounts paid or payable in settlement,
      including, without limitation, all interest, assessments and other charges
      paid
      or payable in connection with or in respect of any of the foregoing.

     

    “Person”
      means
      any individual, entity or group, within the meaning of Section 13(d)(3) or
      14(d)(2) of the Securities Exchange Act of 1934, as amended. 

     

    “Standard
      of Conduct”
      means
      the standard for conduct by Indemnitee that is a condition precedent to
      indemnification of Indemnitee hereunder against Indemnifiable Losses relating
      to, arising out of or resulting from an Indemnifiable Claim. The Standard of
      Conduct is (i) good faith and a reasonable belief by Indemnitee that his action
      was in or not opposed to the best interests of the Company and, with respect
      to
      any criminal action or proceeding, that Indemnitee had no reasonable cause
      to
      believe that his conduct was unlawful, or (ii) any other applicable standard
      of
      conduct that may hereafter be substituted under Section 145(a) or (b) of the
      Delaware General Corporation Law or any successor to such
      provision(s).

    

    2. Indemnification
      Obligation.
      Subject
      only to Section 7 and to the proviso in this Section, the Company shall
      indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted
      or required by the laws of the State of Delaware in effect on the date hereof
      or
      as such laws may from time to time hereafter be amended to increase the scope
      of
      such permitted indemnification, against any and all Indemnifiable Claims and
      Indemnifiable Losses; provided,
      however,
      that,
      except as provided in Section 5, Indemnitee shall not be entitled to
      indemnification pursuant to this Agreement in connection with (i) any Claim
      initiated by Indemnitee against the Company or any director or officer of the
      Company unless the Company has joined in or consented to the initiation of
      such
      Claim, or (ii) the purchase and sale by Indemnitee of securities in violation
      of
      Section 16(b) of the Securities Exchange Act of 1934, as amended. The Company
      acknowledges that the foregoing obligation may be broader than that now provided
      by applicable law and the Company’s Constituent Documents and intends that it be
      interpreted consistently with this Section and the recitals to this Agreement.
      

     

    
      
         

      

      
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    3. Advancement
      of Expenses. 
      Indemnitee shall have the right to advancement by the Company prior to the
      final
      disposition of any Indemnifiable Claim of any and all actual and reasonable
      Expenses relating to, arising out of or resulting from any Indemnifiable Claim
      paid or incurred by Indemnitee. Without limiting the generality or effect of
      any
      other provision hereof, Indemnitee’s right to such advancement is not subject to
      the satisfaction of any Standard of Conduct. Without limiting the generality
      or
      effect of the foregoing, within five business days after any request by
      Indemnitee that is accompanied by supporting documentation for specific
      reasonable Expenses to be reimbursed or advanced, the Company shall, in
      accordance with such request (but without duplication), (a) pay such Expenses
      on
      behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient
      to
      pay such Expenses, or (c) reimburse Indemnitee for such Expenses; provided
      that
      Indemnitee shall repay, without interest, any amounts actually advanced to
      Indemnitee that, at the final disposition of the Indemnifiable Claim to which
      the advance related, were in excess of amounts paid or payable by Indemnitee
      in
      respect of Expenses relating to, arising out of or resulting from such
      Indemnifiable Claim. In connection with any such payment, advancement or
      reimbursement, at the request of the Company, Indemnitee shall execute and
      deliver to the Company an undertaking, which need not be secured and shall
      be
      accepted without reference to Indemnitee’s ability to repay the Expenses, by or
      on behalf of the Indemnitee, to repay any amounts paid, advanced or reimbursed
      by the Company in respect of Expenses relating to, arising out of or resulting
      from any Indemnifiable Claim in respect of which it shall have been determined,
      following the final disposition of such Indemnifiable Claim and in accordance
      with Section 7, that Indemnitee is not entitled to indemnification
      hereunder.

     

    4. Indemnification
      for Additional Expenses. 
      Without
      limiting the generality or effect of the foregoing, the Company shall indemnify
      and hold harmless Indemnitee against and, if requested by Indemnitee, shall
      reimburse Indemnitee for, or advance to Indemnitee, within five business days
      of
      such request accompanied by supporting documentation for specific Expenses
      to be
      reimbursed or advanced, any and all actual and reasonable Expenses paid or
      incurred by Indemnitee in connection with any Claim made, instituted or
      conducted by Indemnitee for (a) indemnification or reimbursement or advance
      payment of Expenses by the Company under any provision of this Agreement, or
      under any other agreement or provision of the Constituent Documents now or
      hereafter in effect relating to Indemnifiable Claims, and/or (b) recovery under
      any directors’ and officers’ liability insurance policies maintained by the
      Company; provided,
      however,
      if it is
      ultimately determined that the Indemnitee is not entitled to such
      indemnification, reimbursement, advance or insurance recovery, as the case
      may
      be, then the Indemnitee shall be obligated to repay any such Expenses to the
      Company; provided
      further,
      that,
      regardless in each case of whether Indemnitee ultimately is determined to be
      entitled to such indemnification, reimbursement, advance or insurance recovery,
      as the case may be, Indemnitee shall return, without interest, any such advance
      of Expenses (or portion thereof) which remains unspent at the final disposition
      of the Claim to which the advance related.

     

    
      
         

      

      
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    5. Partial
      Indemnity.
      If
      Indemnitee is entitled under any provision of this Agreement to indemnification
      by the Company for some or a portion of any Indemnifiable Loss but not for
      all
      of the total amount thereof, the Company shall nevertheless indemnify Indemnitee
      for the portion thereof to which Indemnitee is entitled.

     

    6. Procedure
      for Notification.
      To
      obtain indemnification under this Agreement in respect of an Indemnifiable
      Claim
      or Indemnifiable Loss, Indemnitee shall submit to the Company a written request
      therefore, including a brief description (based upon information then available
      to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the
      time of the receipt of such request, the Company has directors’ and officers’
liability insurance in effect under which coverage for such Indemnifiable Claim
      or Indemnifiable Loss is potentially available, the Company shall give prompt
      written notice of such Indemnifiable Claim or Indemnifiable Loss to the
      applicable insurers in accordance with the procedures set forth in the
      applicable policies. The Company shall thereafter take all necessary or
      desirable action to cause such insurers to pay, on behalf of the Indemnitee,
      all
      Indemnifiable Claims and Indemnifiable Losses in accordance with the terms
      of
      such policies. The Company shall provide to Indemnitee a copy of such notice
      delivered to the applicable insurers, substantially concurrently with the
      delivery thereof by the Company. The failure by Indemnitee to timely notify
      the
      Company of any Indemnifiable Claim or Indemnifiable Loss shall not relieve
      the
      Company from any liability hereunder unless, and only to the extent that, the
      Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable
      Loss and to the extent that such failure results in forfeiture by the Company
      of
      substantial defenses, rights or insurance coverage.

     

    7. 
      Determination of Right to Indemnification.
      

     

    To
      the
      extent that Indemnitee shall have been successful on the merits or otherwise
      in
      defense of any Indemnifiable Claim or any portion thereof or in defense of
      any
      issue or matter therein, including, without limitation, dismissal without
      prejudice, Indemnitee shall be indemnified against all Indemnifiable Losses
      relating to, arising out of or resulting from such Indemnifiable Claim in
      accordance with Section 2 and no Standard of Conduct Determination (as defined
      in Section 7(b)) shall be required.

     

    To
      the
      extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable
      Claim that shall have been finally disposed of, any determination of whether
      Indemnitee has satisfied the applicable Standard of Conduct (a “Standard
      of Conduct Determination”)
      shall
      be made as follows: (i) if a Change in Control shall not have occurred, or
      if a
      Change in Control shall have occurred but Indemnitee shall have requested that
      the Standard of Conduct Determination be made pursuant to this clause (i),
      (A)
      by a majority vote of the Disinterested Directors, even if less than a quorum
      of
      the Board, (B) if such Disinterested Directors so direct, by a majority vote
      of
      a committee of Disinterested Directors designated by a majority vote of all
      Disinterested Directors, or (C) if there are no such Disinterested Directors,
      or
      if a majority of the Disinterested Directors so direct, by Independent Counsel
      in a written opinion addressed to the Board, a copy of which shall be delivered
      to Indemnitee; and (ii) if a Change in Control shall have occurred and
      Indemnitee shall not have requested that the Standard of Conduct Determination
      be made pursuant to clause (i) above, by Independent Counsel in a written
      opinion addressed to the Board, a copy of which shall be delivered to
      Indemnitee.

     

    
      
         

      

      
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    If
      (i)
      Indemnitee shall be entitled to indemnification hereunder against any
      Indemnifiable Losses pursuant to Section 7(a), (ii) no determination of whether
      Indemnitee has satisfied any applicable standard of conduct under Delaware
      law
      is a legally required condition precedent to indemnification of Indemnitee
      hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been
      determined or deemed pursuant to Section 7(b) to have satisfied the applicable
      Standard of Conduct, then the Company shall pay to Indemnitee, within five
      business days after the later of (x) the Notification Date in respect of the
      Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are
      related, out of which such Indemnifiable Losses arose or from which such
      Indemnifiable Losses resulted, and (y) the earliest date on which the applicable
      criterion specified in clause (i), (ii) or (iii) above shall have been
      satisfied, an amount equal to the amount of such Indemnifiable Losses. Nothing
      herein is intended to mean or imply that the Company is intending to use Section
      145(f) of the Delaware General Corporation Law to dispense with a requirement
      that Indemnitee meet the applicable Standard of Conduct where it is otherwise
      required by such statute.

     

    If
      a
      Standard of Conduct Determination is required to be, but has not been, made
      by
      Independent Counsel pursuant to Section 7(b)(i), the Independent Counsel shall
      be selected by the Board or a committee of the Board, and the Company shall
      give
      written notice to Indemnitee advising him or her of the identity of the
      Independent Counsel so selected. If a Standard of Conduct Determination is
      required to be, or to have been, made by Independent Counsel pursuant to Section
      7(b)(ii), the Independent Counsel shall be selected by Indemnitee, and
      Indemnitee shall give written notice to the Company advising it of the identity
      of the Independent Counsel so selected. In either case, Indemnitee or the
      Company, as applicable, may, within five business days after receiving written
      notice of selection from the other, deliver to the other a written objection
      to
      such selection; provided,
      however,
      that
      such objection may be asserted only on the ground that the Independent Counsel
      so selected does not satisfy the criteria set forth in the definition of
“Independent Counsel” in Section 1(h), and the objection shall set forth with
      particularity the factual basis of such assertion. Absent a proper and timely
      objection, the Person so selected shall act as Independent Counsel. If such
      written objection is properly and timely made and substantiated, (i) the
      Independent Counsel so selected may not serve as Independent Counsel unless
      and
      until such objection is withdrawn or a court has determined that such objection
      is without merit and (ii) the non-objecting party may, at its option, select
      an
      alternative Independent Counsel and give written notice to the other party
      advising such other party of the identity of the alternative Independent Counsel
      so selected, in which case the provisions of the two immediately preceding
      sentences and clause (i) of this sentence shall apply to such subsequent
      selection and notice. If applicable, the provisions of clause (ii) of the
      immediately preceding sentence shall apply to successive alternative selections.
      If no Independent Counsel that is permitted under the foregoing provisions
      of
      this Section 7(d) to make the Standard of Conduct Determination shall have
      been
      selected within 30 calendar days after the Company gives its initial notice
      pursuant to the first sentence of this Section 7(d) or Indemnitee gives its
      initial notice pursuant to the second sentence of this Section 7(d), as the
      case
      may be, either the Company or Indemnitee may petition the Court of Chancery
      of
      the State of Delaware for resolution of any objection which shall have been
      made
      by the Company or Indemnitee to the other’s selection of Independent Counsel
      and/or for the appointment as Independent Counsel of a person or firm selected
      by the Court or by such other person as the Court shall designate, and the
      person or firm with respect to whom all objections are so resolved or the person
      or firm so appointed will act as Independent Counsel. In all events, the Company
      shall pay all of the actual and reasonable fees and expenses of the Independent
      Counsel incurred in connection with the Independent Counsel’s determination
      pursuant to Section 7(b).

     

    
      
         

      

      
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    8. Cooperation.
      Indemnitee shall cooperate with reasonable requests of the Company in connection
      with any Indemnifiable Claim and any individual or firm making such Standard
      of
      Conduct Determination, including providing to such Person documentation or
      information which is not privileged or otherwise protected from disclosure
      and
      which is reasonably available to Indemnitee and reasonably necessary to defend
      the Indemnifiable Claim or make any Standard of Conduct Determination without
      incurring any unreimbursed cost in connection therewith. The Company shall
      indemnify and hold harmless Indemnitee against and, if requested by Indemnitee,
      shall reimburse Indemnitee for, or advance to Indemnitee, within five business
      days of such request accompanied by supporting documentation for specific costs
      and expenses to be reimbursed or advanced, any and all costs and expenses
      (including attorneys’ and experts’ fees and expenses) actually and reasonably
      incurred by Indemnitee in so cooperating with the Person defending the
      Indemnifiable Claim or making such Standard of Conduct Determination.

     

    9. Presumption
      of Entitlement.
      Notwithstanding any other provision hereof, in making any Standard of Conduct
      Determination, the Person making such determination shall presume that
      Indemnitee has satisfied the applicable Standard of Conduct.

     

    10. No
      Other Presumption.
      For
      purposes of this Agreement, the termination of any Claim by judgment, order,
      settlement (whether with or without court approval) or conviction, or upon
      a
      plea of nolo contendere or its equivalent, will not create a presumption that
      Indemnitee did not meet any applicable Standard of Conduct or that
      indemnification hereunder is otherwise not permitted.

     

    11. Non-Exclusivity.
      The
      rights of Indemnitee hereunder will be in addition to any other rights
      Indemnitee may have under the Constituent Documents, or the substantive laws
      of
      the Company’s jurisdiction of incorporation, any other contract or otherwise
      (collectively, “Other
      Indemnity Provisions”);
      provided,
      however,
      that (a)
      to the extent that Indemnitee otherwise would have any greater right to
      indemnification under any Other Indemnity Provision, Indemnitee will without
      further action be deemed to have such greater right hereunder, and (b) to the
      extent that any change is made to any Other Indemnity Provision which permits
      any greater right to indemnification than that provided under this Agreement
      as
      of the date hereof, Indemnitee will be deemed to have such greater right
      hereunder. The Company may not, without the consent of Indemnitee, adopt any
      amendment to any of the Constituent Documents the effect of which would be
      to
      deny, diminish or encumber Indemnitee’s right to indemnification under this
      Agreement.

     

    12.  Liability
      Insurance and Funding.
      For the
      duration of Indemnitee’s service as a director and/or officer of the Company and
      for a reasonable period of time thereafter, which such period shall be
      determined by the Company in its sole discretion, the Company shall use
      commercially reasonable efforts (taking into account the scope and amount of
      coverage available relative to the cost thereof) to cause to be maintained
      in
      effect policies of directors’ and officers’ liability insurance providing
      coverage for directors and/or officers of the Company, and, if applicable,
      that
      is substantially comparable in scope and amount to that provided by the
      Company’s current policies of directors’ and officers’ liability insurance. Upon
      reasonable request, the Company shall provide Indemnitee or his or her counsel
      with a copy of all directors’ and officers’ liability insurance applications,
      binders, policies, declarations, endorsements and other related materials.
      In
      all policies of directors’ and officers’ liability insurance obtained by the
      Company, Indemnitee shall be named as an insured in such a manner as to provide
      Indemnitee the same rights and benefits, subject to the same limitations, as
      are
      accorded to the Company’s directors and officers most favorably insured by such
      policy. Notwithstanding the foregoing, (i) the Company may, but shall not be
      required to, create a trust fund, grant a security interest or use other means,
      including, without limitation, a letter of credit, to ensure the payment of
      such
      amounts as may be necessary to satisfy its obligations to indemnify and advance
      expenses pursuant to this Agreement and (ii) in renewing or seeking to renew
      any
      insurance hereunder, the Company will not be required to expend more than 2.0
      times the premium amount of the immediately preceding policy period (equitably
      adjusted if necessary to reflect differences in policy periods).

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    13. Subrogation.
      In the
      event of payment under this Agreement, the Company shall be subrogated to the
      extent of such payment to all of the related rights of recovery of Indemnitee
      against other Persons (other than Indemnitee’s successors), including any entity
      or enterprise referred to in clause (i) of the definition of “Indemnifiable
      Claim” in Section 1(f). Indemnitee shall execute all papers reasonably required
      to evidence such rights (all of Indemnitee’s reasonable Expenses, including
      attorneys’ fees and charges, related thereto to be reimbursed by or, at the
      option of Indemnitee, advanced by the Company).

     

    14. No
      Duplication of Payments.
      The
      Company shall not be liable under this Agreement to make any payment to
      Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee
      has
      otherwise already actually received payment (net of Expenses incurred in
      connection therewith) under any insurance policy, the Constituent Documents
      and
      Other Indemnity Provisions or otherwise (including from any entity or enterprise
      referred to in clause (i) of the definition of “Indemnifiable Claim” in Section
      1(f)) in respect of such Indemnifiable Losses otherwise indemnifiable
      hereunder.

     

    15.  Defense
      of Claims.
      Subject
      to the provisions of applicable policies of directors’ and officers’ liability
      insurance, if any, the Company shall be entitled to participate in the defense
      of any Indemnifiable Claim or to assume or lead the defense thereof with counsel
      reasonably satisfactory to the Indemnitee; provided
      that if
      Indemnitee determines, after consultation with counsel selected by Indemnitee,
      that (a) the use of counsel chosen by the Company to represent Indemnitee would
      present such counsel with an actual or potential conflict, (b) the named parties
      in any such Indemnifiable Claim (including any impleaded parties) include both
      the Company and Indemnitee and Indemnitee shall conclude that there may be
      one
      or more legal defenses available to him or her that are different from or in
      addition to those available to the Company, (c) any such representation by
      such
      counsel would be precluded under the applicable standards of professional
      conduct then prevailing, or (d) Indemnitee has interests in the claim or
      underlying subject matter that are different from or in addition to those of
      other Persons against whom the Claim has been made or might reasonably be
      expected to be made, then Indemnitee shall be entitled to retain separate
      counsel (but not more than one law firm plus, if applicable, local counsel
      in
      respect of any particular Indemnifiable Claim for all indemnitees in
      Indemnitee’s circumstances) at the Company’s expense. The Company shall not be
      liable to Indemnitee under this Agreement for any amounts paid in settlement
      of
      any threatened or pending Indemnifiable Claim effected without the Company’s
      prior written consent. The Company shall not, without the prior written consent
      of the Indemnitee, effect any settlement of any threatened or pending
      Indemnifiable Claim which the Indemnitee is or could have been a party unless
      such settlement solely involves the payment of money and includes a complete
      and
      unconditional release of the Indemnitee from all liability on any claims that
      are the subject matter of such Indemnifiable Claim. Neither the Company nor
      Indemnitee shall unreasonably withhold its consent to any proposed settlement;
      provided
      that
      Indemnitee may withhold consent to any settlement that does not provide a
      complete and unconditional release of Indemnitee.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    16. Mutual
      Acknowledgment. Both
      the
      Company and the Indemnitee acknowledge that in certain instances, Federal law
      or
      applicable public policy may prohibit the Company from indemnifying its
      directors and officers under this Agreement or otherwise. Indemnitee understands
      and acknowledges that the Company may be required in the future to undertake
      to
      the Securities and Exchange Commission to submit the question of indemnification
      to a court in certain circumstances for a determination of the Company’s right
      under public policy to indemnify Indemnitee and, in that event, the Indemnitee’s
      rights and the Company’s obligations hereunder shall be subject to that
      determination.

     

    17. Successors
      and Binding Agreement.

     

    This
      Agreement shall be binding upon and inure to the benefit of the Company and
      any
      successor to the Company, including, without limitation, any Person acquiring
      directly or indirectly all or substantially all of the business or assets of
      the
      Company whether by purchase, merger, consolidation, reorganization or otherwise
      (and such successor will thereafter be deemed the “Company” for purposes of this
      Agreement), but shall not otherwise be assignable or delegatable by the
      Company.

     

    This
      Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s
      personal or legal representatives, executors, administrators, heirs,
      distributees, legatees and other successors. 

     

    This
      Agreement is personal in nature and neither of the parties hereto shall, without
      the consent of the other, assign or delegate this Agreement or any rights or
      obligations hereunder except as expressly provided in Sections 17(a) and 17(b).
      Without limiting the generality or effect of the foregoing, Indemnitee’s right
      to receive payments hereunder shall not be assignable, whether by pledge,
      creation of a security interest or otherwise, other than by a transfer by the
      Indemnitee’s will or by the laws of descent and distribution, and, in the event
      of any attempted assignment or transfer contrary to this Section 17(c), the
      Company shall have no liability to pay any amount so attempted to be assigned
      or
      transferred.

     

    18. Notices.
      For all
      purposes of this Agreement, all communications, including without limitation
      notices, consents, requests or approvals, required or permitted to be given
      hereunder must be in writing and shall be deemed to have been duly given when
      hand delivered or dispatched by electronic facsimile transmission (with receipt
      thereof orally confirmed), or one business day after having been sent for
      next-day delivery by a nationally recognized overnight courier service,
      addressed to the Company (to the attention of the Secretary of the Company)
      and
      to Indemnitee at the applicable address shown on the signature page hereto,
      or
      to such other address as any party may have furnished to the other in writing
      and in accordance herewith, except that notices of changes of address will
      be
      effective only upon receipt.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    19. Governing
      Law. The
      validity, interpretation, construction and performance of this Agreement shall
      be governed by and construed in accordance with the substantive laws of the
      State of Delaware, without giving effect to the principles of conflict of laws
      of such State. The Company and Indemnitee each hereby irrevocably consent to
      the
      jurisdiction of the Chancery Court of the State of Delaware for all purposes
      in
      connection with any action or proceeding which arises out of or relates to
      this
      Agreement, waive all procedural objections to suit in that jurisdiction,
      including, without limitation, objections as to venue or inconvenience, agree
      that service in any such action may be made by notice given in accordance with
      Section 18 and also agree that any action instituted under this Agreement shall
      be brought only in the Chancery Court of the State of Delaware.

     

    20.  Validity.
      If any
      provision of this Agreement or the application of any provision hereof to any
      Person or circumstance is held invalid, unenforceable or otherwise illegal,
      the
      remainder of this Agreement and the application of such provision to any other
      Person or circumstance shall not be affected, and the provision so held to
      be
      invalid, unenforceable or otherwise illegal shall be reformed to the extent,
      and
      only to the extent, necessary to make it enforceable, valid or legal. In the
      event that any court or other adjudicative body shall decline to reform any
      provision of this Agreement held to be invalid, unenforceable or otherwise
      illegal as contemplated by the immediately preceding sentence, the parties
      thereto shall take all such action as may be necessary or appropriate to replace
      the provision so held to be invalid, unenforceable or otherwise illegal with
      one
      or more alternative provisions that effectuate the purpose and intent of the
      original provisions of this Agreement as fully as possible without being
      invalid, unenforceable or otherwise illegal.

     

    21. Miscellaneous.
      No
      provision of this Agreement may be waived, modified or discharged unless such
      waiver, modification or discharge is agreed to in writing signed by Indemnitee
      and the Company. No waiver by either party hereto at any time of any breach
      by
      the other party hereto or compliance with any condition or provision of this
      Agreement to be performed by such other party shall be deemed a waiver of
      similar or dissimilar provisions or conditions at the same or at any prior
      or
      subsequent time. No agreements or representations, oral or otherwise, expressed
      or implied with respect to the subject matter hereof have been made by either
      party that are not set forth expressly in this Agreement.

     

    22. Certain
      Interpretive Matters.
      Unless
      the context of this Agreement otherwise requires, (1) “it” or “its” or words of
      any gender include each other gender, (2) words using the singular or plural
      number also include the plural or singular number, respectively, (3) the terms
      “hereof,” “herein,” “hereby” and derivative or similar words refer to this
      entire Agreement, (4) the terms “Article,” “Section,” “Annex” or “Exhibit” refer
      to the specified Article, Section, Annex or Exhibit of or to this Agreement,
      (5)
      the terms “include,” “includes” and “including” will be deemed to be followed by
      the words “without limitation” (whether or not so expressed), and (6) the word
“or” is disjunctive but not exclusive. Whenever this Agreement refers to a
      number of days, such number will refer to calendar days unless business days
      are
      specified and whenever action must be taken (including the giving of notice
      or
      the delivery of documents) under this Agreement during a certain period of
      time
      or by a particular date that ends or occurs on a non-business day, then such
      period or date will be extended until the immediately following business day.
      As
      used herein, “business
      day”
      means
      any day other than Saturday, Sunday or a United States federal
      holiday.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    23. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and supersedes all prior agreements
      and understandings, both written and oral, between the parties hereto with
      respect to the subject matter of this Agreement. Any prior agreements or
      understandings between the parties hereto with respect to indemnification are
      hereby terminated and of no further force or effect. This Agreement is not
      the
      exclusive means of securing indemnification rights of Indemnitee and is in
      addition to any rights Indemnitee may have under any Constituent
      Documents.

     

    24.  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original but all of which together shall constitute one and
      the
      same agreement.

     

    [REMAINDER
      OF PAGE INTENTIONALLY BLANK]

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly
      authorized representative to execute this Agreement as of the date first above
      written.

    
      	 	 	 
	 	
              MSTI
                HOLDINGS, INC.

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:
                Frank T. Matarazzo

              Title:
                Chief Executive Officer

            

    

     

    
      	 	 	 
	 	
              MSTI
                HOLDINGS, INC.

            
	 	 
	 	INDEMNITEE:
	 	 
	 	
              

              Name:

            
	 	
              Address: 

              
                

              

               

              
                

              

               
                
                

              

            
	
            	        
                 	 

    

    
      Signature
        Page to Director and Officer Indemnification
        Agreement

    

     

    
      
         

      

      
        13MSTI
      HOLDINGS, INC.

     

    2007
      INCENTIVE STOCK PLAN

     

    1. Purpose
      of the Plan.

     

    This
      2007
      Incentive Stock Plan (the “Plan”)
      is
      intended as an incentive, to retain in the employ of and as directors, officers,
      consultants, advisors and employees to MSTI Holdings, Inc., a Delaware
      corporation (the “Company”),
      and
      any Subsidiary of the Company, within the meaning of Section 424(f) of the
      United States Internal Revenue Code of 1986, as amended (the “Code”),
      persons of training, experience and ability, to attract new directors, officers,
      consultants, advisors and employees whose services are considered valuable,
      to
      encourage the sense of proprietorship and to stimulate the active interest
      of
      such persons in the development and financial success of the Company and its
      Subsidiaries.

     

    It
      is
      further intended that certain options granted pursuant to the Plan shall
      constitute incentive stock options within the meaning of Section 422 of the
      Code
      (the “Incentive
      Options”)
      while
      certain other options granted pursuant to the Plan shall be nonqualified stock
      options (the “Nonqualified
      Options”).
      Incentive Options and Nonqualified Options are hereinafter referred to
      collectively as “Options.”

     

    The
      Company intends that the Plan meet the requirements of Rule 16b-3 (“Rule
      16b-3”)
      promulgated under the Securities Exchange Act of 1934, as amended (the
“Exchange
      Act”)
      and
      that transactions of the type specified in subparagraphs (c) to (f) inclusive
      of
      Rule 16b-3 by officers and directors of the Company pursuant to the Plan will
      be
      exempt from the operation of Section 16(b) of the Exchange Act. Further, the
      Plan is intended to satisfy the performance-based compensation exception to
      the
      limitation on the Company’s tax deductions imposed by Section 162(m) of the Code
      with respect to those Options for which qualification for such exception is
      intended. In all cases, the terms, provisions, conditions and limitations of
      the
      Plan shall be construed and interpreted consistent with the Company’s intent as
      stated in this Section 1.

     

    2. Administration
      of the Plan.

     

    The
      Board
      of Directors of the Company (the “Board”)
      shall
      appoint and maintain as administrator of the Plan a Committee (the “Committee”)
      consisting of two or more directors who are “Non-Employee
      Directors”
(as
      such term is defined in Rule 16b-3) and “Outside
      Directors”
(as
      such term is defined in Section 162(m) of the Code), which shall serve at the
      pleasure of the Board. The Committee, subject to Sections 3, 5 and 6 hereof,
      shall have full power and authority to designate recipients of Options and
      restricted stock (“Restricted
      Stock”)
      and to
      determine the terms and conditions of the respective Option and Restricted
      Stock
      agreements (which need not be identical) and to interpret the provisions and
      supervise the administration of the Plan. The Committee shall have the
      authority, without limitation, to designate which Options granted under the
      Plan
      shall be Incentive Options and which shall be Nonqualified Options. To the
      extent any Option does not qualify as an Incentive Option, it shall constitute
      a
      separate Nonqualified Option.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Subject
      to the provisions of the Plan, the Committee shall interpret the Plan and all
      Options and Restricted Stock granted under the Plan, shall make such rules
      as it
      deems necessary for the proper administration of the Plan, shall make all other
      determinations necessary or advisable for the administration of the Plan and
      shall correct any defects or supply any omission or reconcile any inconsistency
      in the Plan or in any Options or Restricted Stock granted under the Plan in
      the
      manner and to the extent that the Committee deems desirable to carry into effect
      the Plan or any Options or Restricted Stock. The act or determination of a
      majority of the Committee shall be the act or determination of the Committee
      and
      any decision reduced to writing and signed by all of the members of the
      Committee shall be fully effective as if it had been made by a majority of
      the
      Committee at a meeting duly held for such purpose. Subject to the provisions
      of
      the Plan, any action taken or determination made by the Committee pursuant
      to
      this and the other Sections of the Plan shall be conclusive on all
      parties.

     

    In
      the
      event that for any reason the Committee is unable to act or if the Committee
      at
      the time of any grant, award or other acquisition under the Plan does not
      consist of two or more Non-Employee Directors, or if there shall be no such
      Committee, or if the Board otherwise determines to administer the Plan, then
      the
      Plan shall be administered by the Board, and references herein to the Committee
      (except in the proviso to this sentence) shall be deemed to be references to
      the
      Board, and any such grant, award or other acquisition may be approved or
      ratified in any other manner contemplated by subparagraph (d) of Rule 16b-3;
      provided,
      however,
      that
      grants to the Company’s Chief Executive Officer or to any of the Company’s other
      four most highly compensated officers that are intended to qualify as
      performance-based compensation under Section 162(m) of the Code may only be
      granted by the Committee. 

     

    3. Designation
      of Optionees and Grantees.

     

    The
      persons eligible for participation in the Plan as recipients of Options (the
      “Optionees”)
      or
      Restricted Stock (the “Grantees”
and
      together with Optionees, the “Participants”)
      shall
      include directors, officers and employees of the Company and consultants,
      subject to their meeting the eligibility requirements of Rule 701 promulgated
      under the Securities Act of 1933, as amended (the “Securities
      Act”),
      provided that Incentive Options may only be granted to employees of the Company
      and any Subsidiary and further provided that any grant to consultants shall
      be
      restricted with no resistration rights, and shall not exceed 500,000
      shares in the aggregate (subject to adjustments for forward and reserve stock
      splits, stock dividends and recapitalization that occur after the date
      hereof). In selecting Participants, and in determining the number of shares
      to
      be covered by each Option or shares of Restricted Stock granted to Participants,
      the Committee may consider any factors it deems relevant, including, without
      limitation, the office or position held by the Participant or the Participant’s
      relationship to the Company, the Participant’s degree of responsibility for and
      contribution to the growth and success of the Company or any Subsidiary, the
      Participant’s length of service, promotions and potential. A Participant who has
      been granted an Option or Restricted Stock hereunder may be granted an
      additional Option or Options, or Restricted Stock if the Committee shall so
      determine.

     

    4. Stock
      Reserved for the Plan.

     

    Subject
      to adjustment as provided in Section 8 hereof, a total of 4,500,000 shares
      of
      the Company’s Common Stock, par value $0.001 per share (the “Stock”),
      shall
      be subject to the Plan. The maximum number of shares of Stock that may be
      subject to Options granted under the Plan to any individual in any calendar
      year
      shall not exceed 3,500,000 shares and the method of counting such shares shall
      conform to any requirements applicable to performance-based compensation under
      Section 162(m) of the Code, if qualification as performance-based compensation
      under Section 162(m) of the Code is intended. The shares of Stock subject to
      the
      Plan shall consist of unissued shares, treasury shares or previously issued
      shares held by any Subsidiary of the Company, and such amount of shares of
      Stock
      shall be and is hereby reserved for such purpose. Any of such shares of Stock
      that may remain unissued and that are not subject to outstanding Options at
      the
      termination of the Plan shall cease to be reserved for the purposes of the
      Plan,
      but until termination of the Plan the Company shall at all times reserve a
      sufficient number of shares of Stock to meet the requirements of the Plan.
      Should any Option or share of Restricted Stock expire or be canceled prior
      to
      its exercise or vesting in full or should the number of shares of Stock to
      be
      delivered upon the exercise or vesting in full of an Option or share of
      Restricted Stock be reduced for any reason, the shares of Stock theretofore
      subject to such Option or share of Restricted Stock may be subject to future
      Options or shares of Restricted Stock under the Plan, except where such
      reissuance is inconsistent with the provisions of Section 162(m) of the Code
      where qualification as performance-based compensation under Section 162(m)
      of
      the Code is intended.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    5. Terms
      and Conditions of Options.

     

    Options
      granted under the Plan shall be subject to the following conditions and shall
      contain such additional terms and conditions, not inconsistent with the terms
      of
      the Plan, as the Committee shall deem desirable:

     

    (a) Option
      Price.
      The
      purchase price of each share of Stock purchasable under an Incentive Option
      shall be determined by the Committee at the time of grant, but shall not be
      less
      than 100% of the Fair Market Value (as defined below) of such share of Stock
      on
      the date the Option is granted; provided, however, that with respect to an
      Optionee who, at the time such Incentive Option is granted, owns (within the
      meaning of Section 424(d) of the Code) more than 10% of the total combined
      voting power of all classes of stock of the Company or of any Subsidiary, the
      purchase price per share of Stock shall be at least 110% of the Fair Market
      Value per share of Stock on the date of grant. The purchase price of each share
      of Stock purchasable under a Nonqualified Option shall not be less than 100%
      of
      the Fair Market Value of such share of Stock on the date the Option is granted.
      The exercise price for each Option shall be subject to adjustment as provided
      in
      Section 8 below. “Fair
      Market Value”
means
      the closing price on the date of grant on the principal securities exchange
      on
      which shares of Stock are listed (if the shares of Stock are so listed), or
      on
      the NASDAQ Stock Market or OTC Bulletin Board (if the shares of Stock are
      regularly quoted on the NASDAQ Stock Market or OTC Bulletin Board, as the case
      may be), or, if not so listed or regularly quoted, the mean between the closing
      bid and asked prices of publicly traded shares of Stock in the over the counter
      market, or, if such bid and asked prices shall not be available, as reported
      by
      any nationally recognized quotation service selected by the Company, or as
      determined by the Committee in a manner consistent with the provisions of the
      Code. 

     

    (b) Option
      Term.
      The
      term of each Option shall be fixed by the Committee, but no Option shall be
      exercisable more than ten years after the date such Option is granted and in
      the
      case of an Incentive Option granted to an Optionee who, at the time such
      Incentive Option is granted, owns (within the meaning of Section 424(d) of
      the
      Code) more than 10% of the total combined voting power of all classes of stock
      of the Company or of any Subsidiary, no such Incentive Option shall be
      exercisable more than five years after the date such Incentive Option is
      granted. 

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (c) Exercisability.
      Subject
      to Section 5(j) hereof, Options shall be exercisable at such time or times
      and
      subject to such terms and conditions as shall be determined by the Committee
      at
      the time of grant; provided,
      however,
      that in
      the absence of any Option vesting periods designated by the Committee at the
      time of grant, Options shall vest and become exercisable as to one-third of
      the
      total amount of shares subject to the Option on each of the first, second and
      third anniversaries of the date of grant; and provided further that no Options
      shall be exercisable until such time as any vesting limitation required by
      Section 16 of the Exchange Act, and related rules, shall be satisfied if such
      limitation shall be required for continued validity of the exemption provided
      under Rule 16b-3(d)(3).

     

    Notwithstanding
      any provision in this Plan, in the event there is a Change of Control (as
      defined below), the Company shall, at no cost to the Participant, replace any
      and all stock options granted by the Company and held by the Participant at
      the
      time of the Change of Control, whether or not vested, with an equal number
      of
      unrestricted and fully vested stock options to purchase shares of the Company’s
      Common Stock (the “Option
      Replacement”).
      With
      respect to the Option Replacement, all options will become fully vested.
      Alternatively, in the event of a Change of Control, in lieu of the Option
      Replacement, a Participant may, subject to Board approval at the time, elect
      to
      surrender the Participant’s rights to such options, and upon such surrender, the
      Company shall pay to the Participant an amount in cash per stock option (whether
      vested or unvested) then held, which is the difference between the full exercise
      price of each option surrendered and the greater of (i) the average price per
      share paid in connection with the acquisition of control of the Company if
      such
      control was acquired by the payment of cash or the then fair market value of
      the
      consideration paid for such shares if such control was acquired for
      consideration other than cash, (ii) the price per share paid in connection
      with
      any tender offer for shares of the Company’s Common Stock leading to control, or
      (iii) the mean between the high and low selling price of such stock on the
      NASDAQ Stock Market, OTC Bulletin Board or other market on which the Company’s
      Common Stock is then traded or listed for quotation on the date of the Change
      of
      Control.

     

    For
      purposes of the Plan, a “Change in Control” shall be deemed to have occurred if
      any of the following occurs:

     

    (i) An
      acquisition (other than directly from the Company) of any voting securities
      of
      the Company (the “Voting
      Securities”)
      by any
“Person” (as the term “person” is used for purposes of Section 13(d) or 14(d) of
      the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)),
      immediately after which such Person has “Beneficial Ownership” (within the
      meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty
      percent (50%) of (1) the then-outstanding shares of common stock of the Company
      (or any other securities into which such shares of common stock are changed
      or
      for which such shares of common stock are exchanged) (the “Shares”)
      or (2)
      the combined voting power of the Company’s then-outstanding Voting Securities;
provided,
      however,
      that in
      determining whether a Change in Control has occurred pursuant to this paragraph
      (a), the acquisition of Shares or Voting Securities in a “Non-Control
      Acquisition” (as hereinafter defined) shall not constitute a Change in Control.
      A “Non-Control
      Acquisition”
shall
      mean an acquisition by (i) an employee benefit plan (or a trust forming a part
      thereof) maintained by (A) the Company or (B) any corporation or other Person
      the majority of the voting power, voting equity securities or equity interest
      of
      which is owned, directly or indirectly, by the Company (for purposes of this
      definition, a “Related
      Entity”),
      (ii)
      the Company or any Related Entity, or (iii) any Person in connection with a
      “Non-Control Transaction” (as hereinafter defined); 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (ii) The
      consummation of:

     

    (a) A
      merger,
      consolidation or reorganization (1) with or into the Company or (2) in
      which securities of the Company are issued (a “Merger”),
      unless such Merger is a “Non-Control Transaction.” A “Non-Control
      Transaction”
shall
      mean a Merger in which:

     

    (i) the
      stockholders of the Company immediately before such Merger own directly or
      indirectly immediately following such Merger at least fifty percent (50%) of
      the
      combined voting power of the outstanding voting securities of (x) the Surviving
      Corporation, if there is no Parent Corporation or (y) if there is one or more
      than one Parent Corporation, the ultimate Parent Corporation; and

     

    (ii) no
      Person
      other than (1) the Company, (2) any Related Entity, or (3) any employee
      benefit plan (or any trust forming a part thereof) that, immediately prior
      to
      the Merger, was maintained by the Company or any Related Entity, or (4) any
      Person who, immediately prior to the Merger had Beneficial Ownership of twenty
      percent (20%) or more of the then outstanding Shares or Voting Securities,
      has
      Beneficial Ownership, directly or indirectly, of twenty percent (20%) or more
      of
      the combined voting power of the outstanding voting securities or common stock
      of (x) the Surviving Corporation, if fifty percent (50%) or more of the combined
      voting power of the then outstanding voting securities of the Surviving
      Corporation is not Beneficially Owned, directly or indirectly by a Parent
      Corporation, or (y) if there is one or more than one Parent Corporation, the
      ultimate Parent Corporation;

     

    (b) A
      complete liquidation or dissolution of the Company; or

     

    (c) The
      sale
      or other disposition of all or substantially all of the assets of the Company
      and its subsidiaries taken as a whole to any Person (other than (x) a transfer
      to a Related Entity, (y) a transfer under conditions that would constitute
      a Non-Control Transaction, with the disposition of assets being regarded as
      a
      Merger for this purpose or (z) the distribution to the Company’s
      stockholders of the stock of a Related Entity or any other assets).

     

    Notwithstanding
      the foregoing, a Change in Control shall not be deemed to occur solely because
      any Person (the “Subject
      Person”)
      acquired Beneficial Ownership of more than the permitted amount of the then
      outstanding Shares or Voting Securities as a result of the acquisition of Shares
      or Voting Securities by the Company which, by reducing the number of Shares
      or
      Voting Securities then outstanding, increases the proportional number of shares
      Beneficially Owned by the Subject Persons; provided,
      that if
      a Change in Control would occur (but for the operation of this sentence) as
      a
      result of the acquisition of Shares or Voting Securities by the Company and,
      after such share acquisition by the Company, the Subject Person becomes the
      Beneficial Owner of any additional Shares or Voting Securities and such
      Beneficial Ownership increases the percentage of the then outstanding Shares
      or
      Voting Securities Beneficially Owned by the Subject Person, then a Change in
      Control shall occur.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (d) Method
      of Exercise.
      Options
      to the extent then exercisable may be exercised in whole or in part at any
      time
      during the option period, by giving written notice to the Company specifying
      the
      number of shares of Stock to be purchased, accompanied by payment in full of
      the
      purchase price, in cash, or by check or such other instrument as may be
      acceptable to the Committee. As determined by the Committee, in its sole
      discretion, at or after grant, payment in full or in part may be made at the
      election of the Optionee (i) in the form of Stock owned by the Optionee (based
      on the Fair Market Value of the Stock which is not the subject of any pledge
      or
      security interest, (ii) in the form of shares of Stock withheld by the Company
      from the shares of Stock otherwise to be received with such withheld shares
      of
      Stock having a Fair Market Value equal to the exercise price of the Option,
      or
      (iii) by a combination of the foregoing, such Fair Market Value determined
      by
      applying the principles set forth in Section 5(a), provided that the combined
      value of all cash and cash equivalents and the Fair Market Value of any shares
      surrendered to the Company is at least equal to such exercise price and except
      with respect to (ii) above, such method of payment will not cause a
      disqualifying disposition of all or a portion of the Stock received upon
      exercise of an Incentive Option. Notwithstanding the forgoing, an Optionee
      may
      not take any actions that are prohibited by the Sarbanes-Oxley Act of 2002
      and
      the rules and regulations promulgated by the Securities and Exchange Commission
      or any agency thereunder. An Optionee shall have the right to dividends and
      other rights of a stockholder with respect to shares of Stock purchased upon
      exercise of an Option at such time as the Optionee (i) has given written notice
      of exercise and has paid in full for such shares, and (ii) has satisfied such
      conditions that may be imposed by the Company with respect to the withholding
      of
      taxes. 

     

    (e) Non-transferability
      of Options.
      Options
      are not transferable and may be exercised solely by the Optionee during his
      lifetime or after his death by the person or persons entitled thereto under
      his
      will or the laws of descent and distribution. The Committee, in its sole
      discretion, may permit a transfer of a Nonqualified Option to (i) a trust for
      the benefit of the Optionee, (ii) a member of the Optionee’s immediate family
      (or a trust for his or her benefit) or (iii) pursuant to a domestic relations
      order. Any attempt to transfer, assign, pledge or otherwise dispose of, or
      to
      subject to execution, attachment or similar process, any Option contrary to
      the
      provisions hereof shall be void and ineffective and shall give no right to
      the
      purported transferee.

     

    (f) Termination
      by Death.
      Unless
      otherwise determined by the Committee, if any Optionee’s employment with or
      service to the Company or any Subsidiary terminates by reason of death, the
      Option may thereafter be exercised, to the extent then exercisable (or on such
      accelerated basis as the Committee shall determine at or after grant), by the
      legal representative of the estate or by the legatee of the Optionee under
      the
      will of the Optionee, for a period of one year after the date of such death
      (or,
      if later, such time as the Option may be exercised pursuant to Section 14(d)
      hereof) or until the expiration of the stated term of such Option as provided
      under the Plan, whichever period is shorter.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (g) Termination
      by Reason of Disability.
      Unless
      otherwise determined by the Committee, if any Optionee’s employment with or
      service to the Company or any Subsidiary terminates by reason of total and
      permanent disability, any Option held by such Optionee may thereafter be
      exercised, to the extent it was exercisable at the time of termination due
      to
      disability (or on such accelerated basis as the Committee shall determine at
      or
      after grant), but may not be exercised after three (3) months after the date
      of
      such termination of employment or service (or, if later, such time as the Option
      may be exercised pursuant to Section 14(d) hereof) or the expiration of the
      stated term of such Option, whichever period is shorter; provided,
      however,
      that,
      if the Optionee dies within such three (3) month period, any unexercised Option
      held by such Optionee shall thereafter be exercisable to the extent to which
      it
      was exercisable at the time of death for a period of one (1) year after the
      date
      of such death (or, if later, such time as the Option may be exercised pursuant
      to Section 14(d) hereof) or for the stated term of such Option, whichever period
      is shorter.

     

    (h) Termination
      by Reason of Retirement.
      Unless
      otherwise determined by the Committee, if any Optionee’s employment with or
      service to the Company or any Subsidiary terminates by reason of Normal or
      Early
      Retirement (as such terms are defined below), any Option held by such Optionee
      may thereafter be exercised to the extent it was exercisable at the time of
      such
      Retirement (or on such accelerated basis as the Committee shall determine at
      or
      after grant), but may not be exercised after three (3) months after the date
      of
      such termination of employment or service (or, if later, such time as the Option
      may be exercised pursuant to Section 14(d) hereof) or the expiration of the
      stated term of such Option, whichever date is earlier; provided,
      however,
      that,
      if the Optionee dies within such three (3) month period, any unexercised Option
      held by such Optionee shall thereafter be exercisable, to the extent to which
      it
      was exercisable at the time of death, for a period of one (1) year after the
      date of such death (or, if later, such time as the Option may be exercised
      pursuant to Section 14(d) hereof) or for the stated term of such Option,
      whichever period is shorter.

     

    For
      purposes of this paragraph (h), “Normal
      Retirement”
shall
      mean retirement from active employment with the Company or any Subsidiary on
      or
      after the normal retirement date specified in the applicable Company or
      Subsidiary pension plan or if no such pension plan, age 65, and “Early
      Retirement” shall mean retirement from active employment with the Company or any
      Subsidiary pursuant to the early retirement provisions of the applicable Company
      or Subsidiary pension plan or if no such pension plan, age 55. 

     

    (i) Other
      Termination.
      Unless
      otherwise determined by the Committee upon grant, if any Optionee’s employment
      with or service to the Company or any Subsidiary terminates for any reason
      other
      than death, disability or Normal or Early Retirement, the Option shall thereupon
      terminate, except that the portion of any Option that was exercisable on the
      date of such termination of employment or service may be exercised for the
      lesser of thirty (30) days after the date of termination or the balance of
      such
      Option’s term if the Optionee’s employment or service with the Company or any
      Subsidiary or Affiliate is terminated by the Company or such Subsidiary without
      cause (the determination as to whether termination was for cause to be made
      by
      the Committee). The transfer of an Optionee from the employ of or service to
      the
      Company to the employ of or service to a Subsidiary, or vice versa, or from
      one
      Subsidiary to another, shall not be deemed to constitute a termination of
      employment or service for purposes of the Plan.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (j) Limit
      on Value of Incentive Option.
      The
      aggregate Fair Market Value, determined as of the date the Incentive Option
      is
      granted, of Stock for which Incentive Options are exercisable for the first
      time
      by any Optionee during any calendar year under the Plan (and/or any other stock
      option plans of the Company or any Subsidiary) shall not exceed
      $100,000.

     

    (k) Grants
      to Foreign Employees.
      The
      terms of grants to foreign employees may vary from the terms of this Section
      5
      provided that the terms shall only be more restrictive than any term in this
      Section 5.

     

    6. Terms
      and Conditions of Restricted Stock.

     

    Restricted
      Stock may be granted under this Plan aside from, or in association with, any
      other award and shall be subject to the following conditions and shall contain
      such additional terms and conditions (including provisions relating to the
      acceleration of vesting of Restricted Stock upon a Change of Control), not
      inconsistent with the terms of the Plan, as the Committee shall deem
      desirable:

     

    (a) Grantee
      rights.
      A
      Grantee shall have no rights to an award of Restricted Stock unless and until
      Grantee accepts the award within the period prescribed by the Committee. After
      acceptance and issuance of a certificate or certificates, as provided for below,
      the Grantee shall have the rights of a stockholder with respect to Restricted
      Stock subject to the non-transferability and forfeiture restrictions described
      in Section 6(d) below.

     

    (b) Issuance
      of Certificates.
      The
      Company shall issue in the Grantee’s name a certificate or certificates for the
      shares of Common Stock associated with the award promptly after the Grantee
      accepts such award.

     

    (c) Delivery
      of Certificates.
      Unless
      otherwise provided, any certificate or certificates issued evidencing shares
      of
      Restricted Stock shall not be delivered to the Grantee until such shares are
      free of any restrictions specified by the Committee at the time of
      grant.

     

    (d) Forfeitability,
      Non-transferability of Restricted Stock.
      Shares
      of Restricted Stock are forfeitable until the terms of the Restricted Stock
      grant have been satisfied. Shares of Restricted Stock are not transferable
      until
      the date on which the Committee has specified such restrictions have lapsed.
      Unless otherwise provided by the Committee at or after grant, distributions
      in
      the form of dividends or otherwise of additional shares or property in respect
      of shares of Restricted Stock shall be subject to the same restrictions as
      such
      shares of Restricted Stock.

     

    (e) Change
      of Control.
      Upon
      the occurrence of a Change in Control as defined in Section 5(c), the Committee
      may accelerate the vesting of outstanding Restricted Stock, in whole or in
      part,
      as determined by the Committee, in its sole discretion. 

     

    (f) Termination
      of Employment.
      Unless
      otherwise determined by the Committee at or after grant, in the event the
      Grantee ceases to be an employee or otherwise associated with the Company for
      any other reason, all shares of Restricted Stock theretofore awarded to him
      which are still subject to restrictions shall be forfeited and the Company
      shall
      have the right to complete the blank stock power. The Committee may provide
      (on
      or after grant) that restrictions or forfeiture conditions relating to shares
      of
      Restricted Stock will be waived in whole or in part in the event of termination
      resulting from specified causes, and the Committee may in other cases waive
      in
      whole or in part restrictions or forfeiture conditions relating to Restricted
      Stock.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    7. Term
      of Plan.

     

    No
      Option
      or shares of Restricted Stock shall be granted pursuant to the Plan on or after
      the date that is ten years from the effective date of the Plan, but Options
      or
      shares of Restricted Stock theretofore granted may extend beyond that
      date.

     

    8. Capital
      Change of the Company.

     

    In
      the
      event of any merger, reorganization, consolidation, recapitalization, stock
      dividend, or other change in corporate structure affecting the Stock, the
      Committee shall make an appropriate and equitable adjustment in the number
      and
      kind of shares reserved for issuance under the Plan and in the number and option
      price of shares subject to outstanding Options granted under the Plan, to the
      end that after such event each Optionee’s proportionate interest shall be
      maintained (to the extent possible) as immediately before the occurrence of
      such
      event. The Committee shall, to the extent feasible, make such other adjustments
      as may be required under the tax laws so that any Incentive Options previously
      granted shall not be deemed modified within the meaning of Section 424(h) of
      the
      Code. Appropriate adjustments shall also be made in the case of outstanding
      Restricted Stock granted under the Plan.

     

    The
      adjustments described above will be made only to the extent consistent with
      continued qualification of the Option under Section 422 of the Code (in the
      case
      of an Incentive Option) and Section 409A of the Code.

     

    9. Purchase
      for Investment/Conditions.

     

    Unless
      the Options and shares covered by the Plan have been registered under the
      Securities Act, or the Company has determined that such registration is
      unnecessary, each person exercising or receiving Options or Restricted Stock
      under the Plan may be required by the Company to give a representation in
      writing that he is acquiring the securities for his own account for investment
      and not with a view to, or for sale in connection with, the distribution of
      any
      part thereof. The Committee may impose any additional or further restrictions
      on
      awards of Options or Restricted Stock as shall be determined by the Committee
      at
      the time of award.

     

    10. Taxes.

     

    (a) The
      Company may make such provisions as it may deem appropriate, consistent with
      applicable law, in connection with any Options or Restricted Stock granted
      under
      the Plan with respect to the withholding of any taxes (including income or
      employment taxes) or any other tax matters.

     

    (b) If
      any
      Grantee, in connection with the acquisition of Restricted Stock, makes the
      election permitted under Section 83(b) of the Code (that is, an election to
      include in gross income in the year of transfer the amounts specified in Section
      83(b)), such Grantee shall notify the Company of the election with the Internal
      Revenue Service pursuant to regulations issued under the authority of Code
      Section 83(b).

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    (c) If
      any
      Grantee shall make any disposition of shares of Stock issued pursuant to the
      exercise of an Incentive Option under the circumstances described in Section
      421(b) of the Code (relating to certain disqualifying dispositions), such
      Grantee shall notify the Company of such disposition within ten (10) days
      hereof.

     

    11. Effective
      Date of Plan.

     

    The
      Plan
      shall be effective on May __, 2007; provided,
      however,
      that
      if, and only if, certain options are intended to qualify as Incentive Stock
      Options, the Plan must subsequently be approved by majority vote of the
      Company’s stockholders no later than May __, 2008, and further, that in the
      event certain Option grants hereunder are intended to qualify as
      performance-based compensation within the meaning of Section 162(m) of the
      Code,
      the requirements as to shareholder approval set forth in Section 162(m) of
      the
      Code are satisfied.

     

    12. Amendment
      and Termination.

     

    The
      Board
      may amend, suspend, or terminate the Plan, except that no amendment shall be
      made that would impair the rights of any Participant under any Option or
      Restricted Stock theretofore granted without the Participant’s consent, and
      except that no amendment shall be made which, without the approval of the
      stockholders of the Company would:

     

    (a) materially
      increase the number of shares that may be issued under the Plan, except as
      is
      provided in Section 8;

     

    (b) materially
      increase the benefits accruing to the Participants under the Plan; 

     

    (c) materially
      modify the requirements as to eligibility for participation in the Plan;

     

    (d) decrease
      the exercise price of an Incentive Option to less than 100% of the Fair Market
      Value per share of Stock on the date of grant thereof or the exercise price
      of a
      Nonqualified Option to less than 100% of the Fair Market Value per share of
      Stock on the date of grant thereof; 

     

    (e) extend
      the term of any Option beyond that provided for in Section 5(b); or

     

    (f) except
      as
      otherwise provided in Sections 5(c), 5(l) and 8 hereof, reduce the exercise
      price of outstanding Options or effect repricing through cancellations and
      re-grants of new Options.

     

    Subject
      to the forgoing, the Committee may amend the terms of any Option theretofore
      granted, prospectively or retrospectively, but no such amendment shall impair
      the rights of any Optionee without the Optionee’s consent.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    It
      is the
      intention of the Board that the Plan comply strictly with the provisions of
      Section 409A of the Code and Treasury Regulations and other Internal Revenue
      Service guidance promulgated thereunder (the “Section
      409A Rules”)
      and
      the Committee shall exercise its discretion in granting awards hereunder (and
      the terms of such awards), accordingly. The Plan and any grant of an award
      hereunder may be amended from time to time (without, in the case of an award,
      the consent of the Participant) as may be necessary or appropriate to comply
      with the Section 409A Rules.

     

    13. Government
      Regulations.

     

    The
      Plan,
      and the grant and exercise of Options or Restricted Stock hereunder, and the
      obligation of the Company to sell and deliver shares under such Options and
      Restricted Stock shall be subject to all applicable laws, rules and regulations,
      and to such approvals by any governmental agencies, national securities
      exchanges and interdealer quotation systems as may be required.

     

    14. General
      Provisions.

     

    (a) Certificates.
      All
      certificates for shares of Stock delivered under the Plan shall be subject
      to
      such stop transfer orders and other restrictions as the Committee may deem
      advisable under the rules, regulations and other requirements of the Securities
      and Exchange Commission, or other securities commission having jurisdiction,
      any
      applicable Federal or state securities law, any stock exchange or interdealer
      quotation system upon which the Stock is then listed or traded and the Committee
      may cause a legend or legends to be placed on any such certificates to make
      appropriate reference to such restrictions.

     

    (b) Employment
      Matters.
      Neither
      the adoption of the Plan nor any grant or award under the Plan shall confer
      upon
      any Participant who is an employee of the Company or any Subsidiary any right
      to
      continued employment or, in the case of a Participant who is a director,
      continued service as a director, with the Company or a Subsidiary, as the case
      may be, nor shall it interfere in any way with the right of the Company or
      any
      Subsidiary to terminate the employment of any of its employees, the service
      of
      any of its directors or the retention of any of its consultants or advisors
      at
      any time.

     

    (c) Limitation
      of Liability.
      No
      member of the Committee, or any officer or employee of the Company acting on
      behalf of the Committee, shall be personally liable for any action,
      determination or interpretation taken or made in good faith with respect to
      the
      Plan, and all members of the Committee and each and any officer or employee
      of
      the Company acting on their behalf shall, to the extent permitted by law, be
      fully indemnified and protected by the Company in respect of any such action,
      determination or interpretation.

     

    (d) Registration
      of Stock.
      Notwithstanding any other provision in the Plan, no Option may be exercised
      unless and until the Stock to be issued upon the exercise thereof has been
      registered under the Securities Act of 1933, as amended, and applicable state
      securities laws, or are, in the opinion of counsel to the Company, exempt from
      such registration in the United States. The Company shall not be under any
      obligation to register under applicable federal or state securities laws any
      Stock to be issued upon the exercise of an Option granted hereunder in order
      to
      permit the exercise of an Option and the issuance and sale of the Stock subject
      to such Option, although the Company may in its sole discretion register such
      Stock at such time as the Company shall determine. If the Company chooses to
      comply with such an exemption from registration, the Stock issued under the
      Plan
      may, at the direction of the Committee, bear an appropriate restrictive legend
      restricting the transfer or pledge of the Stock represented thereby, and the
      Committee may also give appropriate stop transfer instructions with respect
      to
      such Stock to the Company’s transfer agent.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    15. Non-Uniform
      Determinations.

     

    The
      Committee’s determinations under the Plan, including, without limitation, (i)
      the determination of the Participants to receive awards, (ii) the form, amount
      and timing of such awards, (iii) the terms and provisions of such awards and
      (ii) the agreements evidencing the same, need not be uniform and may be made
      by
      it selectively among Participants who receive, or who are eligible to receive,
      awards under the Plan, whether or not such Participants are similarly
      situated.

     

    16. Governing
      Law.

     

    The
      validity, construction, and effect of the Plan and any rules and regulations
      relating to the Plan shall be determined in accordance with the internal laws
      of
      the State of Delaware, without giving effect to principles of conflicts of
      laws,
      and applicable federal law.

     

    MSTI
      Holdings, Inc.

    _________,
      2007

     

    
      
        
        

      

      
        -12-

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