Exhibit 10(a)

                              EMPLOYMENT AGREEMENT
                              --------------------


         THIS EMPLOYMENT AGREEMENT  ("Agreement") is made and entered into as of
this 4th day of August,  2003, by and between Margo Caribe,  Inc., a Puerto Rico
corporation (which, together with any successor thereto, is hereinafter referred
to as the "Company") and TULIO FIGUEROA (the "Employee").

         WHEREAS,  the Company believes that it is in the best interests of such
entity to enter into this  Agreement  with the  Employee  in order to assure the
services of an executive with the experience and abilities of the Employee, and

         WHEREAS,  the Employee desires to enter into this employment  agreement
with the Company.

         NOW THEREFORE,  in consideration of the foregoing and of the respective
covenants  and  agreements  of the  parties  herein  contained,  it is agreed as
follows:

         1. Employment.

                  (a)  The   Employee   is  hereby   employed   as  Senior  Vice
President-Sales  and Marketing  with primary  responsibility  over the Company's
sales and marketing employees.  The Employee shall have such other duties as may
from time to time be prescribed by the Board of Directors of the Company. In the
performance  of such duties the Employee  shall  report to the  President of the
Company. The Employee shall also carry out the directives of the senior officers
of Margo Caribe, Inc. ("Margo").


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                  (b)  The   Employee   shall   devote  his  best   efforts  and
substantially all business time and attention to the business and affairs of the
Company and its subsidiaries.

         2. Competitive Activities.

                  (a) The Employee agrees that during the term of this Agreement
and for a period of one (1) year after the Employee  ceases to be an employee of
the  Company or of an  affiliate  of Margo (the  "Noncompete  Period")  that the
Employee will not,  within the  Commonwealth of Puerto Rico or any region in the
United  States or Mexico in which  Margo or its  affiliates  engages in business
during the term of this Agreement (a) compete with Margo,  its  subsidiaries and
other  affiliates,  (b) engage in substantially  the same business as Margo, its
subsidiaries  and other affiliates or (c) provide  comparable  services as those
provided by Margo,  its subsidiaries and other affiliates to the past or present
clients and customers of Margo, its subsidiaries  and other  affiliates.  During
the  Noncompete  Period the Employee also agrees not (y) to interfere or attempt
to interfere with the  relationships  between Margo,  its  subsidiaries or other
affiliates and any of Margo's,  its  subsidiaries' or its other affiliates' then
current or potential customers,  vendors or suppliers or (z) to employ,  solicit
for employment or otherwise  contract for the services of any employee of Margo,
its  subsidiaries  or other  affiliates  or who  shall  subsequently  become  an
employee of Margo, its  subsidiaries or other  affiliates  during the Noncompete
Period.  For  purposes  of this  Agreement,  the  Employee  will be deemed to be
engaged in such activities if he is a 1% or more shareholder, officer, director,
partner,  agent,  employee,  member  or  representative  of  any  person,  firm,
corporation,  partnership,  limited  liability  company or other business entity
which is engaged in such activities.

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                  (b) The Employee  agrees and  acknowledges  that, by virtue of
the  Employee's  employment  hereunder,  the Employee  will maintain an intimate
knowledge of the activities and affairs of Margo and its subsidiaries, including
trade secrets and other  confidential  matters.  Such  information is considered
secret  and is  disclosed  to  Employee  in  confidence.  During  and  after his
employment by the Company, Employee shall not directly or indirectly disclose or
use any such  information  except as required in the course of his employment by
the Company.

                  (c) The Employee  recognizes  that the services to be rendered
under this Agreement are special,  unique and  extraordinary  in character,  and
that in the event of breach by the Employee of the terms and  conditions of this
paragraph, the Company or Margo shall be entitled, if it so elects, to institute
and prosecute proceedings, either in law or in equity, to obtain damages for any
breach of the terms or condition of this  Agreement,  or to enforce the specific
performance  thereof by the Employee,  or to enjoin the Employee from performing
services for any other person,  firm,  corporation,  limited liability  company,
partnership or other entity falling within the scope of this Agreement.

         3. Compensation.

                  (a) Salary.  During the term of this  Agreement,  the Employee
shall be entitled to an annual salary established by the Board of Directors. The
annual  salary  hereunder as of the  Commencement  Date (as defined in Section 5
hereof)  shall be equal to $108,000  per year.  The  Employee's  salary shall be
payable not less  frequently  than monthly.  Any  adjustments in salary or other
compensation shall in no way limit or reduce any other obligation

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of the Company hereunder. The Employee's salary in effect hereunder from time to
time shall not thereafter be reduced.

                  (b) Performance Bonus. During the term of this Agreement,  the
Employee  shall  also be  entitled  to receive  an annual  incentive  bonus (the
"Performance  Bonus").  The Performance  Bonus for any calendar year (or portion
thereof) shall be computed according to the criteria established by the Board of
Directors of the Company or Margo's senior officers.

                  (c) Restricted Stock Options. Upon the execution of this
Agreement,  the Employee  shall be entitled to receive an award of 10,000 shares
of Margo's  Common Stock  pursuant to Margo's 2003  Restricted  Stock Plan.  The
restrictions  on  20% of  such  restricted  stock  award  shall  lapse  on  each
anniversary of the execution of this  Agreement,  and further  provided that any
unvested  portion of the restricted  stock award shall not be forfeited upon the
termination  of the  Employee's  employment  whether  for  cause  or not  unless
otherwise required under the terms of the 2003 Restricted Stock Plan.

                  (d)  Expenses.  During the term of the  Employee's  employment
hereunder,  the Employee shall be entitled to receive prompt  reimbursement  for
all  reasonable  expenses  incurred  by him in  performing  services  hereunder,
provided that the Employee  properly  accounts  therefor in accordance  with the
then existing  policy of Margo.  The Company will also reimburse the Employee in
the amount of $700 per month for car allowance.  Nothing  contained herein shall
authorize  the Employee to make any political  contributions,  including but not
limited to payments for dinners and  advertising in any political  party program
or any other payment to any person, which might be deemed a bribe, kick- back or
otherwise an improper payment or contribution under

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existing  law  or  under  Margo's  policy  or  practice  and no  portion  of the
compensation payable hereunder is for such purpose.

                  (e)  Withholding.  Payments  of any  compensation  under  this
Agreement shall be subject to reduction by the amount of any applicable federal,
Commonwealth  of Puerto Rico,  state or  municipal  income  withholding,  social
security,  state  disability  insurance or similar or other taxes or other items
which may be required or authorized to be deducted by law or custom.

                  (f)    No Additional Compensation.  No additional compensation
shall be due to Employee for services performed to the Company or any subsidiary
or affiliate of the Company.

         4. Benefits.

                  During  the  term of this  Agreement,  the  Employee  shall be
entitled to  participate  in those  benefit plans  generally  available to other
officers of the Company.  Nothing  herein shall obligate the Company to continue
any existing benefit plan or to establish any replacement benefit plan.

         5. Term.

                  The term of employment  under this Agreement shall be a period
of twelve (12) months  commencing on the date hereof (the  "Commencement  Date")
and ending on July 31,  2004  (such  period,  the  "Initial  Term"),  subject to
earlier  termination as provided herein. This Agreement will automatically renew
itself on a year to year  basis  after the end of the  Initial  Term  unless the
Company notifies the Employee, or the Employee notifies the Company, as the case
may be, with at least thirty (30) days prior

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written  notice to the day of  termination  of this  Agreement or any  automatic
renewal thereof.

         6. Vacations.

                  The Employee shall be entitled, without loss of pay, to absent
himself voluntarily from the performance of his employment under this Agreement,
all such voluntary absences to count as vacation time, provided that:

                  (a) During the term of employment  under this  Agreement,  the
Employee shall be entitled to paid vacation at least  equivalent to fifteen (15)
working  days  per  year to be taken in  accordance  with the  plans,  policies,
programs or practices of Margo as in effect from time to time; and,

                  (b)      The timing of vacations shall be scheduled in a
reasonable manner by the Employee subject to approval by the
President of the Company.

         7. Termination of Employment; Death.

                  (a) The Company may terminate the Employee's employment at any
time. If the employment of the Employee is involuntarily terminated,  other than
for "cause" as provided in this Section  7(a) the Company  shall have no further
obligation to the Employee under this  Agreement,  except that the company shall
pay the  Employee his salary  throughout  the  remainder of the then  applicable
twelve-month  period. The terms  "termination" or "involuntarily  terminated" in
this  Agreement  shall refer to the  termination  of the  employment of Employee
without the Employee's express written consent.


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         In case of  termination  of the  Employee's  employment for cause or by
resignation, the Company shall pay the Employee his salary through and including
the date of  termination or  resignation,  and the Company shall have no further
obligation to the Employee under this Agreement.  The term "cause" shall include
termination for personal dishonesty, incompetence, willful misconduct, breach of
a fiduciary duty, insubordination,  failure to perform stated duties, failure to
comply with Company politics and procedures, willful violation of any law, rule,
or regulation (other than traffic violations or similar minor offenses) or final
cease-and-desist order, or material breach of any provision of this Agreement.

                  (b) In the event of the death of the Employee  during the term
of employment  under this  Agreement and prior to the  termination of Employee's
employment hereunder for any other reason, the Employee's estate, or such person
as the Employee may have previously designated in writing,  shall be entitled to
receive from the Company the salary of the Employee  through and  including  the
last day of the calendar month in which the Employee's death occurs.

                  (c) The provisions of Section 2 shall survive any termination
of this Agreement.

         8. Permanent Disability.

                  (a) If the Employee  shall  become  disabled  permanently  (as
defined in Margo's then current  disability  plan) during the term of employment
under this  Agreement  and prior to the  termination  of  Employee's  employment
hereunder for any other reason,  the Company shall have no further obligation to
the Employee under this Agreement except that the Company shall pay

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the Employee his salary and Performance Bonus through and including the last day
of the  calendar  month in which  the  Employee  is  determined  to be  disabled
permanently.

         9. No Assignments.

                  (a) This Agreement is personal to each of the parties  hereof,
and  neither  party may  assign or  delegate  any of its  rights or  obligations
hereunder  without  first  obtaining  the  written  consent of the other  party;
provided,  however,  that if the Company  merges or  consolidates  into  another
entity  controlled  by it or any  affiliate  of the  Company,  or enters  into a
reorganization  transaction in which the shareholders of the Company immediately
prior  to any  such  transaction  become  the  shareholders  or  members  of the
resulting  entity,  then this  Agreement  shall be transferred to such resulting
entity.

                  (b) This  Agreement  and all rights of the Employee  hereunder
shall inure to the benefit of and be enforceable by the Employee's  personal and
legal   representatives,    executors,   administrators,    successors,   heirs,
distributees,  devisees  and  legatees.  If the  Employee  should  die while any
amounts  would still be payable to the  Employee  hereunder  if the Employee had
continued to live, all such amounts,  unless otherwise provided herein, shall be
paid in accordance  with the terms of this Agreement to the Employee's  devisee,
legatee or other  designee or if there is no such  designee,  to the  Employee's
estate.

         10. Notice.

                  For the  purposes  of this  Agreement,  notices  and all other
communications  provided for in the  Agreement  shall be in writing and shall be
deemed to have been duly given when

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personally  delivered  or sent by  certified  mail,  return  receipt  requested,
postage  prepaid,  addressed to the last known  respective  address of the party
hereto  (provided  that all  notices to the  Company  shall be  directed  to the
attention  of the Chief  Executive  Officer  of the  Company  with a copy to the
Secretary  of such entity and  provided  further  that a copy of any such notice
shall be delivered or sent to Margo Caribe,  Inc. Call Box 1370, Dorado,  Puerto
Rico, 00646-1370 Attn: J. Fernando Rodriguez, or to such other address as either
party may have furnished to the other in writing in accordance herewith.

         11. Amendments.

                  No amendments or additions to this Agreement  shall be binding
unless in  writing  and  signed  by both  parties,  except  as herein  otherwise
provided.

         12. Paragraph Headings.

                  The  paragraph  headings  used in this  Agreement are included
solely  for  convenience  of  reference  and  shall  not  affect,  or be used in
connection with, the interpretation of this Agreement.

         13. Severability.

                  The provisions of this Agreement shall be deemed severable and
the  invalidity  or  unenforceability  of any  provision  shall not  affect  the
validity or unenforceability of the other provisions hereof.


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         14. Governing Law.

                  This   Agreement   shall  be  governed  by  the  laws  of  the
Commonwealth of Puerto Rico.

         15. Other Matters.

                  (a) Except as provided in Section  9(b),  any amounts  payable
hereunder  are personal to the Employee and are not  transferable  or assignable
either by the Employee's act or by operation of law, and no assignee, trustee in
bankruptcy,  receiver or other party  whomsoever  shall have any right to demand
any such amounts or any other right with respect thereto.

                  (b) The  Employee  understands  that  payment  of any  amounts
hereunder,  including any bonus,  is not held or set aside in trust and that (1)
the Company may seek to retain, offset, attach or similarly place a lien on such
funds in circumstances  where the Employee has been discharged for cause and, in
addition,  shall  be  entitled  to do so for  (x)  malfeasance  damaging  to the
Company, (y) conversion by the Employee of an opportunity of the Company, or (z)
a  violation  of the  Company's  conflict of  interest  policy,  in each case as
determined  by  arbitration  as provided  hereinafter,  and (2) in the event the
Company  is  unable  to  make  any  payment  under  this  Agreement  because  of
receivership,  insolvency,  bankruptcy  or similar  status or  proceedings,  the
Employee will be treated as a general unsecured  creditor of the Company and may
be entitled to no priority under applicable law with respect to such payments.





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         16. Arbitration.

                  Any dispute or controversy arising under or in connection with
this Agreement shall be settled  exclusively by arbitration in San Juan,  Puerto
Rico, in accordance with the rules of the American Arbitration  Association then
in effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction.

         17. Execution in Counterparts.

                  This  Agreement may be executed in any number of  counterparts
and by the  parties  hereto  in  separate  counterparts,  each of which  when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
day and year first above written.

         SECTION 16 OF THIS AGREEMENT CONTAINS A BINDING  ARBITRATION  PROVISION
WHICH MAY BE ENFORCED BY THE PARTIES.

                                             Margo Caribe, Inc.



                                       By: /s/ J. Fernando Rodriguez
                                           -------------------------------
                                              J. Fernando Rodriguez
                                              President and Chief Operating
                                              Officer


                                              EMPLOYEE


                                             /s/ Tulio Figueroa
                                             --------------------------------
                                              Tulio Figueroa


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