Exhibit 10.37

JOINT DEVELOPMENT AND EXCLUSIVE SUPPLY AGREEMENT

BETWEEN

MEASUREMENT SPECIALTIES, INC.

AND

TEXAS INSTRUMENTS INCORPORATED

Parties and Effective Date

This agreement, between Texas Instruments Incorporated, Automotive Sensors & Controls, of Attleboro MA (TI) and Measurement Specialties, Inc. of Fairfield NJ (MSI) shall have an effective date of 01 July 98.

Background

MSI is engaged in the design, development, engineering, and manufacture of microfused strain gage sensor elements and completed pressure sensors used in the commercial and industrial markets.

TI is engaged in the design, development, engineering and manufacture of pressure sensors using solid state technology and processes for the automotive, commercial and industrial markets.

Purpose

TI and MSI desire to establish a cooperative relationship to design and develop the next generation pressure sensors for high volume automotive applications, with the first focus being on the emerging small form factor brake pressure transducer (BPT) market. The commercial relationship at the outset will be one of joint development, but it is expected to evolve to a larger more complementary strategic alliance as the efforts provide a return on investment and as each party becomes more familiar with the competencies of the other.

Scope of Project

This Agreement shall be performed in phases. Projects include the creation of pre-prototype, prototype and production Products incorporating piezoresistive transducers glass bonded to metal diaphragms (“Subassemblies”).

TI will provide developmental funding and other appropriate resources to MSI in support of the BPT project, with progress payments being made at agreed upon milestones. Under such an arrangement TI will have the exclusive right to use this technology on all automotive (passenger, light truck and sport utility vehicles) brake and transmission applications, with the potential to extend this exclusivity to other automotive market segments as the business potential is better understood. Notwithstanding the above, should TI and MSI not have developed an active transmission program by December 31,1999 or should TI become inactive in its efforts to develop transmission programs for a period of more than twelve (12) months, MSI shall have the right to reassess TI’s exclusivity for the transmission market subject to good faith discussions with TI which will take into account market conditions for the product.

August 20, 1998

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MSI will remain open to granting exclusivity to TI in other automotive market segments during the term of this agreement to the extent possible, subject to MSI’s obligations with other customers with which work was begun prior to exclusivity between TI and MSI. TI shall have the right of first refusal to obtain exclusivity in the diesel common rail, and direct gasoline injection automotive market segments. TI will have 30 days to negotiate this right after being informed by MSI of its intention to grant such exclusivity (the parties agree that such negotiations shall take into account prior and projected funding by TI). TI may negotiate for exclusivity in other automotive segments as the opportunity arises. MSI will consider TI as a preferred party and will work with TI preferentially whenever possible as new market opportunities arise.

Exclusivity will be based on TI continuing to remain committed to the program, providing an agreed upon level of NRE and purchasing product as described in Attachment A.

NRE will be disbursed in progress payments when to-be-determined mutually agreed upon milestones are achieved. In the event TI does not deliver NRE funding it can lose its exclusive status, but it will retain access to MSI Subassemblies at a to be agreed upon pricing.

In the event TI does not deliver the product purchases, at its option it can make payments as mutually agreed upon to offset the shortfall to maintain its exclusive status.

MSI will develop and fulfill a resource staffing plan commensurate with TI funding commitments and the required developmental efforts to be accomplished, and it is expected MSI will continue to make appropriate staffing decisions as TI/market success increases. MSI agrees to provide periodic updates regarding resource staffing plans and allocations.

MSI will support development of these sensors and will set up to manufacture Subassemblies in support of TI forecasted volumes and at quality levels suitable for automotive sensors. It is anticipated that MSI will supply a gaged and pretested sensor Subassembly with an option for statistical compensation.

The team’s goal is to develop Subassemblies (strain gages bonded to the metal front end) which meets TI’s $1.25 target price in calendar year 2001 volumes of 1 M units. It is understood that this price will be downward trending over time. In the event it becomes evident that the target price will not be met, NRE funding can be suspended at TI’s sole discretion, and the parties agree to mutually re-evaluate the price target and negotiate a continued relationship. TI also reserves the right, in the event the target price, quality or performance is not met, to terminate the agreement with no requirements for compensation to MSI except for the royalty payment hereinafter described in this Agreement.

Each party will contribute its expertise (TI in analog circuitry, channel to market, application expertise, high volume manufacturing, automotive product development, etc, and MSI in strain gage sensing know-how, and strain gage bonding, etc,) to the effort.

August 20, 1998

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With the expectation that MSI’s development effort results in a Subassembly which will meet or beat the above target price, meet or exceed the performance requirements in TI specification EX3584-25 as finally agreed upon and customer mandated specifications (nominally, the +/- 2.3% accuracy) or any ensuing changes in these specifications to which both parties have agreed, and demonstrate suitable process capability, then TI agrees during the term of this agreement, or in any event not later than July 1, 2008, to source all (subject to the next paragraph) of its Subassembly requirements from MSI for piezoresistive transducers glass bonded to metal diaphragms.

Should customer requirements dictate North American or European manufacture of some Subassemblies, TI may manufacture a maximum of twenty percent (20%) of its Subassemblies provided that it pays quarterly to MSI a royalty of the lower of nine cents ($0.09) or seven percent (7%) of the Net Sales Price of the lowest Subassembly price per Subassembly charged to TI by MSI in the quarter. In the event twenty percent (20%) is insufficient to support customers requirements, MSI agrees to renegotiate this share to allow TI to meet its customers’ needs. In the event of an interruption of supply due to political reasons or acts of God or MSI’s inability to supply Subassemblies, TI may manufacture up to one hundred percent (100%) of its Subassemblies during the period of interruption provided it pays the royalty.

Notwithstanding anything to the contrary above, if the contract should terminate for any reason, if applicable, a royalty of the lower of nine cents ($0.09) per Subassembly or seven percent (7%) of the Net Sales Price attributable to the Subassemblies will be paid by TI to MSI for a period of seven years from the effective date of this agreement.

Forecasted volumes, based on present day knowledge, of brake and transmission pressure transducers covered by this agreement for the initial years of the agreement are projected in Attachment B.

TI remains open to the idea of MSI, or a joint TI/MSI effort, providing some percentage of the finished product (i.e., “Sensor”) requirements to the automotive marketplace from China at a to be determined time. Notwithstanding the above, MSI agrees during the term of this Agreement in which there is an exclusivity arrangement between the two Parties not to make and/or sell any air conditioning pressure sensing products for automotive applications.

Product Development Framework, Milestones

The phases of the project will follow TI’s New Product Development process, with the schedule as follows:

August 20, 1998

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Patents and Inventions

All inventions, copyrightable material, or proprietary information made or developed solely by employees of one of the parties in performance under this Agreement shall be the sole property of the party and that party shall retain the rights to file applications for and obtain patents and copyrights thereon.

All jointly developed technology shall be jointly owned by TI and MSI. In this event the parties shall jointly agree which party shall have the responsibility for preparing and filing any patent applications(s) on the invention in the US and foreign countries, and the parties agree that each will bear one-half of the actual out-of-pocket expenses associated with obtaining and maintaining such patents.

TI and MSI will retain rights to intellectual properties held by the respective party prior to the date of this agreement.

Independent Development

Nothing in this agreement shall prevent either party from continuing its independent development of its own technologies, including technology that is subject of this agreement.

Confidential Information

Confidential Information Agreement of February 3, 1998 (attached hereto as Attachment C) is incorporated herein except the term of such agreement is extended, if required, to include the term of this Agreement.

Indemnification

MSI agrees to provide TI with patent indemnity protection with regard to MSI supplied Subassemblies to be delivered pursuant to this agreement.

Termination

This Agreement shall have an initial term until July 1, 2008, unless terminated as otherwise provided herein. Thereafter, the term of this Agreement shall run on a year-to-year basis unless either Party notifies the other in writing at least three (3) months prior to termination or its intention to terminate the Agreement.

August 20, 1998

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Either party shall have the right to terminate this Agreement forthwith by written notice if the other party:

Upon the termination of this Agreement for any reason whatsoever, all rights of the parties under, or in any manner to any extent attributable to, this agreement shall cease and terminate unless otherwise set forth in this agreement. In no event or circumstance shall either party be liable to the other for any loss or damage of any kind or character whatsoever on account, or by reason of, or which is attributable in any manner or to any extent to, the termination of this Agreement, but each party shall remain liable to the other for the payment of any indebtedness then owing and for all damages, losses, costs and expenses suffered or incurred by either party as a result of the other party’s breach of any of its duties or obligations under this agreement.

Delegation and Assignment

Neither party shall delegate any of its duties under this agreement nor assign any of its rights hereunder without the prior written approval of the other party except where the delegation/assignment occurs within the scope of a corporate reorganization or the sale of any significant portion of the business activity of the delegating/assigning party of which this Agreement is a part.

Notices

Any notice required to be sent pursuant to this Agreement shall be deemed to have been given when delivered by certified mail, postage prepaid, and addressed to the parties as follows:

August 20, 1998

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Governing Law and Arbitration

The parties will attempt to settle any claim or controversy arising out of this Agreement through consultation and negotiation in good faith and a spirit of mutual cooperation for a period of three (3) months. If those attempts fail, then the dispute will be mediated by a mutually-acceptable mediator to be chosen by the parties within forty-five (45) days after written notice by either to the other demanding mediation. No party may reasonably withhold consent to the selection of a mediator and the disputing parties will share the costs of the mediation equally. By mutual agreement, however, the parties may postpone mediation and engage in traditional litigation.

Unless otherwise agreed upon and as set forth above in this Agreement, any disputes relating to this Agreement, its breach or alleged breach, termination or validity shall be governed by the laws of the Commonwealth of Massachusetts, except for its choice of law rules.

Modifications

This Agreement shall not be changed or modified in any manner except by a written document signed by all parties. No oral agreement, course of performance or other means other than a written document signed by all parties expressly providing for such waiver shall be deemed to waive the term of this section.

Miscellaneous Provisions

Neither Party shall, except as required by law, disclose the terms of this Agreement without the prior consent of the other Party.

This Agreement shall be in English and may be signed in two or more identical counterparts, either of which shall constitute the fully signed Agreement.

This Agreement, along with the Attachments hereto or referred to thereof, is the entire Agreement between the Parties with respect to the subject matter hereof and supersedes all prior Agreements, understandings or representations between the Parties with respect to the subject matter hereof except for any confidentiality or non-disclosure agreement. No alterations, modifications, interpretation or amendment of this Agreement shall be binding on the Parties unless in writing, designated as an amendment hereto and signed by each of the Parties.

Neither Party in connection with the performance of this Agreement shall either directly or indirectly make, give or promise any payment or other thing of value to any person for any purpose, or commit any other act which is unlawful under the laws of the United States, and, to the extent not inconsistent with the laws of the United States, the laws of any other applicable Jurisdiction.

Neither Party is liable, either wholly or in part, for nonperformance or a delay in performance due to force majuere or contingencies or causes beyond the reasonable control of either Party, including but not limited to, strikes, shortage of labor, fuel, raw material or machinery or technical or yield failure where either Party has exercised ordinary care in the prevention thereof.

August 20, 1998

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Neither Party shall be responsible to the other Party, in contract, tort or otherwise, for any special, incidental or consequential damages whether or not caused by such Party’s negligence.

IN WITNESS WHEREOF, both Parties have caused this Agreement to be duly executed effective as of the first date stated above.

August 20, 1998

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Attachment A - Minimum NRE and Product Purchases

Then growth of 20% per year for three years, thereafter growth of 10% per year.

August 20, 1998

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Attachment B - Anticipated Subassembly Volumes

August 20, 1998

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MEMORANDUM

May 10, 2002

The attached Amendment to the 1998 Joint Development between TI and MSI is written to memorialize the current status of the relationship and modify appropriate terms.

If you approve, please sign below and forward for the additional approvals and signatures.

1q02.55

AMENDMENT AND RESTATEMENT OF THE 1998 JOINT DEVELOPMENT AND

EXCLUSIVE SUPPLY AGREEMENT

BETWEEN

MEASUREMENT SPECIALTIES, INC.

AND

TEXAS INSTRUMENTS INCORPORATED

This Agreement between Texas Instruments Incorporated, Sensors and Controls business, having a place of business in Attleboro, MA (“TI”) and Measurement Specialties, Inc. of Fairfield, NJ (“MSI”) has an effective date of May 10, 2002.

Purpose

It is intended by the parties that they herein clarify certain items from their Joint Development and Exclusive Supply Agreement, effective 1 July 1998, (“the 98 Agreement”) and provide amendments reflecting agreements and practices since 1 July 1998.

Scope of Project

This Section is expanded to include the following new paragraphs:

License Grant – MSI has granted to TI exclusive licenses to the following automotive (passenger, light truck and sport utility vehicles) application markets: braking, transmission, common rail diesel and gasoline direct injection. These licenses are irrevocable, during the term of the agreement, except in the event of an uncured material breach by TI, and terminate upon termination of the 98 Agreement and this Amendment, but may be subject to royalty payments as described in the 98 Agreement. TI will, per the terms of the 98 Agreement, purchase its SEA requirements for sensors sold in the licensed fields above from MSI (except for those volumes internally produced per the provision found in Second Source below) for piezoresistive transducers glass bonded to metal diaphragms during the term of this term of the 98 Agreement. MSI agrees to supply SEAs to TI to meet TI’s requirements during the term of the 98 Agreement and to sell SEAs exclusively to TI within the above licensed fields. TI will incorporate those SEAs into its sensor products and sell these products in all the above licensed fields. TI will only use the licenses to make the SEAs in the event of an uncured material breach of MSI, MSI’s termination of the 98 Agreement for a reason other then an uncured material breach by TI, or pursuant to the Second Source as described below. MSI confirms that TI has, to date, met the conditions called for in the 98 Agreement to maintain the exclusive status of the grants listed above.

MSI will sell SEA’s to TI nonexclusively for any market application. The pricing is based on the cost variables of aggregate annual volume and port geometry for each SEA and then applying a not-to-exceed gross margin percentage as follows:

Excluded from the price table above are; 1) Domestic applications in stationary and transport refrigeration, the gross margin is not-to-exceed 70% and 2) Domestic applications in paint sprayers, the gross margin is not-to-exceed 90%.

MSI and TI agree to have discussions in the future regarding a potential joint venture for industrial applications, regarding MSI private labeling TI MSG product for low volume/nonstrategic applications to TI, and regarding TI potential interest in converting a nonexclusive market segment into an exclusive segment. TI’s current intent is to use MSI SEA’s with our automotive ASIC’s for the next couple years but does reserve the right to use other signal conditioning as needed.

Second Source – Although TI has no immediate intention to second source and expects to buy all of its requires for SEA’s from MSI indefinitely, MSI recognizes that TI may require a second source of production to satisfy its customers. Accordingly, MSI grants to TI an “Option”; granting TI a license to produce internally (“Second Sourced Production”) SEAs. TI agrees to purchase SEAs from MSI at volumes in support of an MSI automotive business share of not less than 60% annually or 7M units (i.e. whichever is greater). By this agreement TI purchases an “Option” which grants TI the right to produce second sourced SEAs to cover all or a portion of volumes above this 60% minimum share level annually or 7M units (i.e. whichever is greater). TI shall be required to pay for exclusivity the higher of $.05 or 5% per SEA to MSI for such Second Sourced Production. Unless unusual circumstances make it commercially unreasonable, TI will provide MSI with notice eighteen (18) months in advance or as soon as the decision has been made, whichever is greater, prior to commencing Second Sourced Production.

In the event that MSI “Like” SEA’s surface competitively in the exclusive markets we serve, the above exclusivity payments would be subject to re-evaluation.

Option Price:

Purchase of Option: payable upon signing of this agreement,

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Exercising of Option: payable 30 days after exercise

Pricing – The parties acknowledge that product pricing remains critical to marketplace success. Sense Element Assembly (“SEA”) (formerly referred to as “Subassemblies” in the 98 Agreement) design and volume projections must remain the drivers to future pricing with continuous improvement strategies in place. Attachment “A” to this amendment contains the agreed to pricing for calendar years 2003 and 2004. Pricing for 2005 and beyond will decline with increasing annual production and expected efficient asset/capacity utilization, annually (each year lower then the year before) from the agreed levels for 2004. Declining SEA Pricing for 2005 and beyond would be required to target expected TI end Market/Customer Driven Product cost reductions (i.e. estimated as between 2 to 8% annually) as the minimum objective.

It is understood that the port pricing has to date achieved substantial reduction, and that both parties will need to work together to further develop cost reduction potential and consequently the pricing target may need to be separated between the port content and non-port content of the total price.

Status of the Joint Development Project

Other

The other provisions of the 98 Agreement remain in effect.

Supply Agreement

The parties intend to negotiate a Supply Agreement for SEAs to replace and expand upon the supply terms provided for in the 98 Agreement and this amendment, but in a manner not inconsistent with the intent of the 98 Agreement and subsequent course of conduct between the parties.

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EXCLUSIVE SUPPLY AGREEMENT

BETWEEN

MEASUREMENT SPECIALTIES, INC.

AND

TEXAS INSTRUMENTS INCORPORATED

ATTACHMENT A

TABLE OF CONTENTS

Attachment A - 100% Forecast

Attachment A - 115% Forecast

Attachment A - 85% Forecast

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Last Update:     May 9, 2002								M. Cavanaugh
										Volumes								SEA Pricing												PORT Pricing Matrix
				SEA #		Port #		User #1		2001		2002		2003		2004		2003						2004						2003				2004
																		Spindex			JL elimination of heat treatment			Spindex			JL elimination of heat treatment			Spindex Port Price		JL Port Price Assumption		Spindex Port Price		JL Port Price Assumption
Current				37735		37736		CT PS60		1230		2122		2745		2830		$	1.32		$	1.24		$	1.18		$	1.10		0.631		0.581		0.618		0.568
Production				37766		37729		TRW430 (SFF)		54		300		622		724		$	1.27		$	1.19		$	1.14		$	1.06		0.572		0.522		0.561		0.511
Program				37844		37842		Honda (SFF)		10		302		411		587		$	1.43		$	1.35		$	1.31		$	1.23		0.689		0.639		0.675		0.625
				37860		37859		Sumitomo (SFF)		5		49		67		130		$	1.44		$	1.36		$	1.33		$	1.25		0.699		0.649		0.685		0.635
Subtotal										1299		2773		3845		4271
PS60SI				37876		37875		PS60si 190 bar		10		19		700		2000		$	1.44		$	1.36		$	1.31		$	1.23		0.706		0.656		0.691		0.641
(SFF)
				37876		37875		PS60si 70 bar		2		0		15		350		$	1.44		$	1.36		$	1.31		$	1.23		0.706		0.656		0.691		0.641
Subtotal										12		19		715		2350
Common				T-604956-01		T-604965-01		LFF2 Common R.		10		125		1439		2683		$	1.55		$	1.47		$	1.32		$	1.24		0.706		0.656		0.691		0.641
Rail				T-604956-01		T-604965-01		LFF2 Common R.		0		0		300		900		$	1.55		$	1.47		$	1.32		$	1.24		0.706		0.656		0.691		0.641
Subtotal										10		125		1739		3583
																			All to be quted						All to be quted
Misc.						37885		Cat Rail (LFF1)		5		10		75		80			TBD						TBD
				37927		37928		Delphi Bk.(LFF1)		0		0		1		105			"						"					0.853				0.836
				37788		37787		Siem CVT		12		1		5		180			"						"					0.882				0.864
								Siem GDI		5		0		20		431			"						"
Subtotal										22		11		101		796
Total										1343		2928		6400		11000
Development Agreement Expected Volume										n/a		2700		n/a		7000

Port Cost Reductions Sharing on improvements beyond above Port Matrix (CR can be H.T. elim.; Raw Mat’l; Productivity, Bippus, etc.)

Payment timing and trigger levels to be agreed upon should volumes reach either 85% or 115% levels

Page 1

ATTACHMENT A -115% forecast

Last Update:     March 1, 2002												Volumes								Port Suppliers
				SEA #		Port #		User #1		Additional Users		2001		2002		2003		2004		2003									2004			2005
																				Spindex			JL elimination of heat treatment			Spindex			JL elimination of heat treatment			Spindex		JL/ Seamax
Current				37735		37736		CT PS60		PS60RD, Tokico		1230		2122		3156.8		3254.5		$	1.29		$	1.21		$	1.165		$	1.09
Production				37766		37729		TRW430 (SFF)				54		300		715.3		832.6		$	1.24		$	1.16		$	1.12		$	1.04
Program				37844		37842		Honda (SFF)				10		302		472.65		675.05		$	1.40		$	1.32		$	1.28		$	1.20
				37860		37859		Sumitomo (SFF)				5		49		77.05		149.5		$	1.41		$	1.33		$	1.29		$	1.21
Subtotal												1299		2773		4421.8		4911.7
PS60SI				37876		37875		PS60si 190 bar (SFF)		220 Bar, 170 Bar		10		19		805		2300		$	1.41		$	1.33		$	1.29		$	1.21
(SFF)																0		0
				37876		37875		PS60si 70 bar (SFF)				2		0		17.25		402.5		$	1.41		$	1.33		$	1.29		$	1.21
Subtotal												12		19		822.25		2702.5
Common				T-604956-01		T-604965-01		LFF2 Common Rail		Siemens and Delphi		10		125		1654.9		3085.5		$	1.51		$	1.43		$	1.37		$	1.29
																0		0
Rail				T-604956-01		T-604965-01		LFF2 Common Rail		Bosch		0		0		345		1035		$	1.51		$	1.43		$	1.37		$	1.29
Subtotal												10		125		1999.9		4120.5
																					All to be quted						All to be quted
Misc.						37885		Cat Rail (LFF1)		Husco Rail, PHS LFF		5		10		86.25		92			TBD						TBD
				37927		37928		Delphi Brake(LFF1)		TRW LFF		0		0		1.15		120.75			"						"
				37788		37787		Siem CVT				12		1		5.75		207			"						"
								Siem GDI		Nissan GDI, Hitach		5		0		23		495.65			"						"
Subtotal												22		11		116.15		915.4
Total												1343		2928		7360		12650
Development Agreement Expected Volume										BPT & CVT		n/a		2700		n/a		7000

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ATTACHMENT A -85% forecast

Last Update: March 1, 2002												Volumes								Port Suppliers
				SEA #		Port #		User #1		Additional Users		2001		2002		2003		2004		2003						2004						2005
																				Spindex			JL elimination of heat treatment			Spindex			JL elimination of heat treatment			Spindex		JL/ Seamax
Current				37735		37736		CT PS60		PS60RD, Tokico		1230		2122		2333.3		2405.5		$	1.35		$	1.27		$	1.22		$	1.14
Production				37766		37729		TRW430 (SFF)				54		300		528.7		615.4		$	1.30		$	1.22		$	1.17		$	1.09
																0
Program				37844		37842		Honda (SFF)				10		302		349.35		498.95		$	1.47		$	1.39		$	1.33		$	1.25
																0
				37860		37859		Sumitomo (SFF)				5		49		56.95		110.5		$	1.48		$	1.40		$	1.35		$	1.27
Subtotal												1299		2773		3268.3		3630.4
PS60SI				37876		37875		PS60si 190 bar (SFF)		220 Bar, 170 Bar		10		19		595		1700		$	1.48		$	1.40		$	1.35		$	1.27
(SFF)
				37876		37875		PS60si 70 bar (SFF)				2		0		12.75		297.5		$	1.48		$	1.40		$	1.35		$	1.27
Subtotal												12		19		607.75		1997.5
Common				T-604956-01		T-604965-01		LFF2 Common Rail		Siemens and Delphi		10		125		1223.2		2280.6		$	1.58		$	1.50		$	1.43		$	1.35
Rail				T-604956-01		T-604965-01		LFF2 Common Rail		Bosch		0		0		255		765		$	1.58		$	1.50		$	1.43		$	1.35
Subtotal												10		125		1478.2		3045.6
																					All to be quted						All to be quted
Misc.						37885		Cat Rail (LFF1)		Husco Rail, PHS LFF		5		10		63.75		68			TBD						TBD
				37927		37928		Delphi Brake (LFF1)		TRW LFF		0		0		0.85		89.25			"						"
				37788		37787		Siem CVT				12		1		4.25		153			"						"
								Siem GDI		Nissan GDI, Hitach		5		0		17		366.35			"						"
Subtotal												22		11		85.85		676.6
Total												1343		2928		5440		9350
Development Agreement Expected Volume										BPT & CVT		n/a		2700		n/a		7000

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