LICENSING AGREEMENT

THIS LICENSING AGREEMENT is effective as of this 20th day of March, 1998 by and
between KBF Pollution Management, Inc., a New York Corporation, with offices
located at One KBF Plaza, End of Jasper Street, Paterson 07522 (hereinafter the
"Licensor") and EPS Environmental, Inc. dba Solucorp Industries, a British
Columbia Corporation, with its principal offices located at 250 West Nyack Road,
West Nyack, New York 10994 (hereinafter the "Licensee").

                                   WITNESSETH

WHEREAS, the Licensor owns the exclusive rights to a patent-pending process to
separate, recover and reclaim metals from liquids by the addition of certain
reagents (hereinafter the "Technology"), under prescribed methodological
conditions (hereinafter the "Process"); and,

WHEREAS, the Licensor possesses expertise in determining the nature and extent
of the applicability of the Technology and Process (hereinafter the "Know-how");
and,

WHEREAS, The Licensee is involved in the environmental remediation business and
desires to obtain a License for the use and marketing of the Technology and
Process to remediate, recover and/or treat liquid streams of wastes containing
metals throughout the world.

NOW THEREFORE, in consideration of the foregoing premises and of the mutual
promises, covenants, conditions, and limitations herein contained, as well as
other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound hereby, the Licensor and
the Licensee do hereby agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

As used above and throughout this entire Agreement, the following terms shall
have the meanings as hereinafter defined:

1.01 Affiliates. Any entity in which a party to this Agreement or any of its
     stockholders, directors or officers has a direct or indirect ownership
     interest (other than insubstantial interests in publicly held companies),
     or any entity which directly, or indirectly through one or more
     intermediaries, controls, is controlled by, or is under common control with
     a party to this Agreement.

1.02 Consumer Price Index ("CPI"). The index used for site specific price
     escalation as determined by the prevailing official rates and other factors
     of the national market in which that site exists (see Attachment B).

1.03 Demand. The demand for the Licensed Material shall be evidenced by any and
     all potential clients, customers, third party environmental remediation or
     management companies, governments and/or site operators which generate or
     in any manner produce, remediate or manage any liquid metal bearing waste
     to which the Licensed Material may apply.

1.04 Effective Date. The effective date of this Agreement shall be the 20th day
     of March, 1998.

1.05 Engineering Contractor. An engineering and/or construction firm shall be
     designated for each site. This engineering contractor will work directly
     with the Licensor in the design and engineering of the site, and consult
     with the Licensor as needed during the construction of the site. The
     engineering contractor will be required to enter into separate agreements
     directly with the Licensor.

1.06 Essential Components. Components without which the Technology and/or the
     Process would be, at worst, ineffective, and at best, inefficient. These
     components include SST, a required polymer and

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     the items and categories of equipment provided for pursuant to the terms
     and conditions of each site specific agreement. All essential components
     shall be purchased directly from the Licensor.

1.07 F.o.b. Shipping. Method of shipping having that meaning ascribed to it by
     standard convention that essentially provides that title for any goods
     purchased changes hands at the point of distribution. The Licensee will
     after taking such title be responsible for all costs, taxes,
     transportation, insurance and/or damage.

1.08 Feasibility Study. Upon the provision of certain information and samples,
     detailed herein, the Licensor will perform an analysis of each site and the
     existing contamination and/or waste stream. This study will allow the
     Licensor to determine the nature and the extent of the applicability of the
     Technology and process. This feasibility study will ultimately form the
     basis for all subsequent design, engineering, technical assistance,
     training and standard operating procedures for each site.

1.09 Gross Receipts. The residual gross revenue upon which the royalties payable
     hereunder shall be calculated in accord with the principles outlined in
     Attachment B, specifically Section A of said Attachment.

1.10 Know-how. The Licensor possesses considerable knowledge and experience in
     practicing the Licensed Material. Every site and every stream of waste is
     unique and requires different procedures, quantities of reagents and
     equipment to process efficiently. The Licensor's expertise in this respect
     is critical in determining the nature and extent of the applicability of
     the Technology and Process to each individual site or stream of waste.
     Know-how is expressly excluded from Licensed Material.

1.11 Letter of Credit. Stand-by letter of credit with site draft attached
     provided by banking institution approved by the Licensor.

1.12 Licensed Material. The license herein granted applies to the use and
     marketing of the present Technology and Process to remediate, recover
     and/or treat liquid streams of wastes containing metals as defined in
     Attachment A, annexed hereto, and does not apply to other technologies or
     processes now existing or hereafter to be created, designed or engineered
     by the Licensor.

1.13 Off-Spec Waste or Site. Pursuant to the terms herein, the Licensor will be
     performing a feasibility study for each site. This study is critical to
     determining the nature and the extent of the applicability of the
     Technology and Process, as well as the design, engineering and construction
     for each site. In order to perform this feasibility study, samples and
     other information must be provided. If the actual site or waste
     characteristics materially differ from the sample's characteristics, the
     site or waste will be deemed by the Licensor to be off-spec.

1.14 Patent. Shall refer to and include applications for letters patent, letters
     patent (including reissues, divisions, continuations or extensions
     thereof), and rights by license or otherwise acquired under letters of
     patent whenever acquired, owned, or possessed, applicable to the use of the
     Technology and Process to remediate, recover and/or treat liquid streams of
     wastes containing metals as defined in Attachment A, annexed hereto.

1.15 Polymer. A coagulating compound that may or may not be used in treatment.
     Its use will be a function of the characteristics of the individual site
     and/or waste at issue. The polymer is one of the essential components as
     that term is defined herein.

1.16 Process. The portion of the Licensed Material that details the general
     methodology for the correct application of the Technology to remediate,
     treat, recover and reclaim metals from liquid waste for re-use as provided
     for in Attachment A, annexed hereto.

1.17 Quality Control and Assurance ("QC QA"). The quality control and quality
     assurance protocols are essential to the effective and efficient operation
     of the Technology and Process. Failure to conform

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     to these protocols may result in the failure of the Technology and Process
     to perform the functions contemplated herein.

1.18 Reagent. A chemical compound that is required for the use of the Licensed
     Material.

1.19 Recovered Product. An ultimate end product of the use of the Licensed
     Material. The recovered product will take the form of a dried powder that
     will have moderate to high concentrations of elemental metals. The
     recovered product is analogous to virgin ore taken directly from the ground
     and is likely to have concentrations of metals and a higher commercial
     value than virgin ore.

1.20 Related Company. Any third party with whom the Licensee has entered into a
     partnering, licensing, sales marketing, contracting, or other remediation,
     recovery and/or treatment relationship with for the express purpose of
     carrying out the transactions contemplated hereby in the Grant Territory.

1.21 Selective Separation Technology ("SST"). An essential chemical component of
     the Technology without which the Licensed Material would be ineffective.

1.22 Site Approval. After performing the initial feasibility study for a
     specific site, the Licensor will make a determination as to whether or not
     and/or to what extent the Licensed Material applies to the characteristics
     of the site. The Licensor, upon making its final determination will issue a
     site approval and prepare a preliminary proposal for the process to be
     employed at the site.

1.23 Site Operator. The Related Company or other entity in charge of the
     management and/or operations of an individual site.

1.24 Site Specific Agreement. Separate per site agreement contemplating the use
     of the Technology and Process as applied to the specific conditions of one
     individual site. It is the intent of the parties hereto to enter into a
     site specific agreement for each and every site, as that term is herein
     defined. This agreement shall state with precision (in terms of U.S.
     dollars) the gross per gallon receipts and other price and cost terms
     herein referenced for each site, which terms will be defined upon the final
     site approval of each site (see Attachment B). This agreement shall also
     detail with precision all such terms herein referenced that remain
     discretionary and conditioned upon final site approval, including, but not
     limited to, any terms detailing the requisite standard operating procedures
     and quality control protocols, the required essential equipment and the
     furnishing of Know-how to the site operator or other third party.

1.25 Site. A specific treatment or remediation system, designed for the
     treatment, recovery and/or remediation of a specific stream of waste using
     the Licensed Material. There can be more than one site at any one
     individual location.

1.26 Standard Operating Procedure ("SOP"). As part of the preparation of the
     final design proposal for each site, the Licensor shall prepare a site
     specific standard operating procedure manual for the site. All site
     personnel will be trained according to the standard operating procedure of
     their respective sites. Strict adherence to SOP protocols is essential to
     the efficient use of the Licensed Materials.

1.27 Technology. The portion of the Licensed Material that details the general
     chemistry and reagents for the correct application of the Technology to
     remediate, treat, recover and reclaim metals from liquid waste as provided
     for in Attachment A, annexed hereto.

1.28 Work-plan. After performing the initial feasibility study for each site,
     and upon issuance of the specific site approval, the Licensor will prepare
     a preliminary proposal and work plan for the design and construction of the
     site. This proposal will be presented to the Licensee or any Related
     Company, including the engineering contractor for inclusion into the final 
     work plan for each site.

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                                   ARTICLE II
                  GRANT OF LICENSE; TERRITORY AND LIMITATIONS

2.01  Grant. The Licensor hereby grants to the Licensee, for approved sites
within the Grant Territory only, as provided for by provision 2.02 hereof, the
exclusive right, license and privilege, subject to provision 5.07 hereof, to use
and market the Technology and Process to remediate, recover and/or treat liquid
streams of wastes containing metals.

2.02. Grant Territory. The exclusive license herein granted is world-wide and
for only those sites approved by the Licensor.

2.03. Scope. The grant shall be inclusive of the right, license and privilege
solely to the use of the Technology and Process as contemplated by this
Agreement only.

     (a)  Exclusion of Know-how. The parties hereby agree that Know-how, as that
          term is herein defined, will be furnished by the Licensor, pursuant to
          the terms as herein defined, on a site specific basis as needed for
          the consideration defined in Article IV, "Royalties and Fees," and
          that this Know-how shall not be included in the grant of the Licensed
          Material.

     (b)  Exclusion of the Manufacture of Reagents. Neither the Licensee or any
          Related Company, Affiliate, sublicensee or other party shall have the
          right to manufacture SST or the polymer required for the Technology
          and Process as herein defined or referenced, and shall purchase the
          SST and the polymer exclusively from the Licensor on the cost basis
          and upon terms defined in Article IV, "Royalties and Fees," and the
          applicable site specific agreement.

     (c)  Exclusion of New Technologies, Processes and Know-how. The license
          herein granted applies to the Technology and Process in existence on
          the effective date of this Agreement, and does not apply to other
          technologies or processes now existing or hereafter created, designed
          or engineered by the Licensor or others. In the event that the
          Licensee desires to obtain the rights to any additional technologies
          or processes now or hereafter existing, the granting of such rights
          shall be subject to separate written agreement then to be negotiated,
          for which rights the Licensee shall have a right of first refusal in
          the Grant Territory only.

2.04 Site Specific Approval. The Licensee shall not under any circumstance use
or otherwise arrange for the use of the Licensed Material in any site not
approved by the Licensor.

2.05 Transferability. The grant of the License to Licensee is nontransferable,
nonassignable and indivisible. The Licensee shall have the right, however, to
sub-license to any third party upon the prior express written consent of the
Licensor, which consent shall not be unreasonably withheld. Upon such
circumstance, the Licensor reserves the right, free of restriction to make
independent arrangements with the third-party with respect to the furnishing of
Know-how, purchase of reagents and equipment, quality control and assurance,
training, record keeping and reporting, and any technical or other support that
may be required.

2.06 No Competitive Technologies, Processes of Know-how. Until either party
shall give to the other notice of termination of this Agreement as hereinafter
provided: (a) Licensee shall not enter into any other license agreement for any
directly competitive Technology and/or Process within the Grant Territory and,
(b) the Licensee shall not directly or indirectly undertake to purchase and/or
use any directly competitive Technology or Process, if any such technologies
and/or processes presently or hereafter exist, except those of the Licensor.

2.07 Sales Through Related Company. Licensee shall have the right to conduct
sales, marketing and contracting through a Related Company provided that the
Licensee shall be responsible for the payment

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of royalties and other obligations under this Agreement. The Licensee shall
within reason disclose to the Licensor the identity of any such Related Company,
and provide copies of all relevant agreements in place with the Related Company
that are reasonably related to the transaction contemplated by this Agreement.

2.08 Patent Coverage Delimited. No license or right is hereby granted by
implication or otherwise, with respect to any other letters patent or
applications thereto except as specifically set forth herein and in Attachment
A, annexed hereto.

2.09 Breach Event. Breach of this Article of the License Agreement in any manner
shall be deemed a material breach for which the Licensor may pursue termination
in full accord with the provisions of this Agreement.

                                  ARTICLE III
                             TERMINATION AND TENURE

3.01 Term. This agreement shall continue in effect, unless sooner terminated as
hereinafter provided, for a period of five (5) years ending on March 20, 2003.
The term of this Agreement shall automatically renew for successive periods of
one year at the end of the term hereof, including renewal terms, unless either
party shall have given written notice of non-renewal at least one year prior to
the end of the term.

3.02 Material Breach. If the Licensee shall at any time and for any reason not
make payment to the Licensor of any royalty or other amount agreed to be paid
hereunder by the date required by this Agreement as required under any site
specific agreements, or shall default in the making and provision of any report
hereunder required by the date required by this Agreement, or shall commit any
breach of any covenant or agreement herein contained, or shall negligently make
any false report and shall fail to remedy such default, breach or report within
thirty (30) days in the case of the Licensee or sixty (60) days in the case of
any potential sub-licensee after written notice thereof by Licensor, Licensor
may, at its option, terminate this Agreement and the Licenses herein granted by
written notice of such termination.

     (a) In the event of any or more of the following:

          (i)  any breach of this Agreement not cured within sixty (60) days
               after notification thereof;

         (ii)  insolvency or bankruptcy of either party;

        (iii)  appointment of a trustee or receiver for either party; 

         (iv)  the failure of the Licensee to use its best efforts to satisfy
               any of the Demand, as herein defined, in the Grant Territory
               after a period of one (1) year from the date of this Agreement;

           (v) the failure of the Licensee to comply with and abide by the terms
               of any the Licensor's feasibility studies, final work plans or
               designs, quality control and assurance procedures and reporting
               requirements or any instructional manual detailing the standard
               operating procedures for each site; and/or,

          (vi) the production by the Licensee of any intentionally misleading or
               otherwise fraudulent or false report.

          then, and in addition to all other rights and remedies which either
          party may have in law or equity, the party not in default may at its
          option terminate this Agreement by written notice. Such termination
          shall become effective on the date set forth in the said notice of
          termination but in no event shall it be earlier than thirty (30) days
          from the date of notice thereof. The waiver of the right of
          termination for any default under this Agreement shall

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          not constitute a waiver of the right to claim damages for such default
          or the right to terminate for any subsequent default.

3.03 Agreement Not to Use or Employ. On termination of this Agreement, Licensee
hereby agrees that it will not, in perpetuity, either directly, indirectly or
through any or its Related Companies or Affiliates, Licensees, sublicenses,
clients, or partners, use or employ any information disclosed by the Licensor
from the patent disclosures and applications, technologies, trade secrets,
designs, formulas, processes, Know-how, contracts, samples, feasibility studies,
work-plans, project documentation, books, instructional volumes, notes,
drawings, writings, documents, files, models, photographs, videos, drawings,
sketches, ideas, concepts and inventions in any stage of development or
completion, improvements and discoveries relating to the rights, privileges and
license, and any improvements thereto, which are the subject matter of this
Agreement.

     (a)  Sublicense Contingency. In the event that pursuant to provision 2.05,
          and upon the express written consent of the Licensor, the Licensee
          sublicenses any rights or privileges to any third party, the Licensee
          shall impose the same condition in perpetuity upon its sublicensees
          with respect to not using any of the information disclosed by the
          Licensor or the Licensee from the Licensor's patent disclosures and
          applications, technologies, trade secrets, designs, formulas,
          processes, Know-how, contracts, samples, feasibility studies,
          work-plans, project documentation, books, instructional volumes,
          notes, drawings, writings, documents, files, models, photographs,
          videos, drawings, sketches, ideas, concepts and inventions in any
          stage of development or completion, improvements and discoveries
          relating to the rights privileges and license, and any improvements
          thereto, which are the subject matter of this Agreement.

     (b)  Covenant to Enforce as to Sublicensee. The Licensee agrees and hereby
          covenants that it shall engage in all reasonable efforts to enforce
          the terms of this subsection 3.03 as against any possible defaulting
          sublicensee, the failure of which enforcement may result in the
          initiation of suit in infringement and breach as against any possible
          defaulting sublicensee.

3.04 Surrender of Rights and Know-how. On the termination of this Agreement, for
any reason whatsoever, Licensee, its Related Companies or Affiliates shall
deliver to Licensor all patent disclosures and applications, technologies, trade
secrets, designs, formulas, processes, Know-how, contracts, samples, feasibility
studies, work-plans, project documentation, books, instructional volumes,
standard operating procedures, notes, drawings, writings, documents, files,
models, photographs, videos, drawings, sketches, any and all duplicated
materials on whatever media so reproduced, ideas, concepts and inventions in any
stage of development or completion, improvements and discoveries relating to the
rights, privileges and license, and any improvements thereto, which are the
subject matter of this Agreement.

     (a)  Sublicense Contingency. In the event that pursuant to provision 2.05,
          and upon the express written consent of the Licensor, the Licensee
          sublicenses any rights or privileges to any third party, the Licensee
          shall to the best of its ability cause said sublicensee(s) to deliver
          to Licensor all patent disclosures and applications, technologies,
          trade secrets, designs, formulas, processes, Know-how, contracts,
          samples, feasibility studies, work-plans, project documentation,
          books, instructional volumes, standard operating procedures, notes,
          drawings, writings, documents, files, models, photographs, videos,
          drawings, sketches, and any and all duplicated materials on whatever
          media so reproduced, ideas, concepts and inventions in any stage of
          development or completion, improvements and discoveries relating to
          the rights, privileges and license, and any improvements thereto,
          which are the subject matter of this Agreement.

3.05 Disposal of Inventory. In the event of termination, Licensor shall be given
right of first refusal to purchase any reagents and/or stocks of any raw
materials, as required to have been purchased from the Licensor pursuant to the
terms herein defined, as the Licensee and/or any Related Company, Affiliate or

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sublicensee of the Licensee may have in its possession. If the Licensor does not
buy said inventories, the Licensor will give to the Licensee or Related Company,
Affiliate or sublicensee the right to continue selling or using the stock on
hand and raw materials until these stocks on hand are exhausted.

3.06 Rights and Obligations Upon Termination. In case of termination, Licensor
shall have the right to give public notice thereof in such manner and at such
time and places as it may deem advisable. Upon termination of this Agreement, by
expiration or otherwise, the following rights, privileges and/or obligations
shall continue to inure to the benefit of the parties:

     (a)  The Licensor shall have the right, free of restriction, to directly
          contract or otherwise conduct any transaction in furtherance of the
          purposes herein contemplated with any Related Company, Affiliate,
          and/or sublicensee of the Licensee or any other third party then
          using, preparing for or otherwise anticipating the use of the
          Technology and Process.

     (b)  The termination of this Agreement shall not relieve the Licensee in
          any way from its obligation to pay Licensor all royalties and fees
          which shall have accrued up to the effective date of termination.

     (c)  Any termination or expiration of this Agreement shall not prejudice
          any cause of action or claim of Licensor accrued or to accrue on
          account of any breach or default by Licensee.

     (d)  Any termination or expiration of this Agreement under this Article
          shall not prejudice the right of the Licensor to a final audit of the
          records of the Licensee in accordance with the provisions of Article
          IV hereof.

     (e)  Any termination or expiration of this Agreement shall not affect the
          continued operation or enforcement of any provision of this Agreement
          which by its express terms is to survive expiration or termination.

3.07 Remedies. The parties hereto agree that the remedy at law for any breach of
this Agreement will be inadequate and it will be impracticable and extremely
difficult to prove, and further agree that such a breach would cause the
aggrieved party irreparable harm, and each party hereby covenants and agrees
that such aggrieved party shall be entitled to temporary and permanent
injunctive relief, without the necessity of proving actual damages.

                                   ARTICLE IV
                               ROYALTIES AND FEES

All royalties and fees outlined hereafter become payable as scheduled herein:

4.01 License Fee. The Licensee shall pay to the Licensor, simultaneously with
the execution and delivery of this license, an initial license issue fee of
$500,000. The Licensee shall further pay to the Licensor a residual license fee
of $0.0005 per gallon for the entire term of this agreement, which fee shall be
paid by the Licensee out of its percentage of the total gross per gallon
receipts, as that term is herein defined.

     (a)  The initial license issue fee shall be paid in the form of
          unrestricted common stock of the Licensee, at 80% of its market value
          as of the close of business on March 19, 1998 (190,550 shares).
          Four-fifths of this stock shall be held in escrow by Sonageri & Fallon
          LLC, Continental Plaza II, Hackensack, New Jersey 07601. The stock
          held in escrow shall be released to the Licensor in three equal
          disbursements on April 20, 1998, May 20, 1998 and June 20, 1998.

     (b)  The residual license fee shall be paid on the fifteenth (15th) of
          every month, commencing with the onset of operations at the first
          approved site and continuing in perpetuity thereafter on a per gallon
          basis.

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4.02 Royalty. For the rights and privileges granted under the License, the
Licensee shall pay to the Licensor, in the manner hereinafter provided, and
until this license is terminated as herein provided, a standard royalty 50% of
the gross per gallon receipts, as that term is herein defined, calculated on a
per site basis (see Attachment B), for the use of the Technology and Process for
the remediation, recovery and/or treatment of any and all quantities of liquid
waste processed in the Grant Territory.

     (a)  Minimum Royalty. Except upon the express written consent of the
          Licensor or as provided in provision 4.02(b) hereof, in no event shall
          the Licensee pay to the Licensor a royalty of less than $3,000,000 for
          the first two years, and $2,000,000 per year thereafter for the
          remaining term of the agreement. In the event that the minimum royalty
          shall be paid, the first minimum royalty shall be payable in full by
          December 31, 1999, and all minimum royalties thereafter shall be
          payable in full at the end of the relevant calendar year.

     (b)  In the event that the Licensed Material is not as warranted herein,
          and provided that the total gross receipts, as that term is herein
          defined, do not exceed $6,000,000 in the first two years and
          $4,000,000 per year for each year thereafter for the term of this
          Agreement, the extent of the Licensee's pecuniary liability for the
          minimum royalty payable hereunder to the Licensor shall be limited to
          50% of the gross receipts.

     (c)  The dollar amount of the royalty and all costs and calculations
          therefor shall be precisely detailed in each Site Specific Agreement
          to be entered into by the parties hereto upon the final site approval
          of each site. It is the intent of the parties to compute the above
          defined costs and figures on a per gallon basis, using dollars per
          gallon as the unit of calculation, and to standardize these costs by
          taking into account the total quantity of waste per site anticipated
          to be processed per year as herein contemplated. All costs of
          operations and reagents shall be expressed as a function of this
          projected total quantity (see Attachment B).

     (d)  The royalty shall be computed per site, and shall under no
          circumstance be less than $0.007 per gallon. The royalty due on any
          one site shall not under any circumstance have any impact on the
          amount of the royalty due on any other site.

4.03 Purchase of Reagents. The Licensee shall cause to be purchased exclusively
from the Licensor the SST at a rate of $18.00 per gallon, and a required
polymer at a rate of $5.00 per pound. All costs of shipment of the reagents
f.o.b. from the point of manufacture to the Grant Territory.

     (a)  The payment will be tendered by an approved institutional stand-by
          letter of credit with site draft attached for each order or as
          approved in writing individually by Licensor.

4.04 Purchase of Equipment. Except upon the express written consent of the
Licensor, the Licensor shall distribute and/or make available to the Licensee
and/or the sublicensee and/or the site operator specific items of essential
equipment at a cost plus ten and ten (10% plus 10%) basis.

     (a)  The payment will be tendered by an approved institutional stand-by
          letter of credit with site draft attached for each order or as
          approved in writing individually by Licensor.

4.05 Feasibility Report. The Licensor shall at its own expense perform a
feasibility study and produce a report thereon on a site by site basis.

     (a)  The Licensee, or any of its Related Companies, Affiliates,
          sublicensees, site operators or the engineering contractor shall
          provide all relevant information for each site reasonably required by
          the Licensor to perform the initial feasibility study, including but
          not limited to samples, process descriptions, engineering drawings and
          schematics, precise quantity, flow and throughput figures, and, if
          travel to any site is for any reason impracticable, a video recording
          of the site.

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4.06 Training. The Licensor shall at its own expense provide for all training
for each site. All personnel will be trained for a two week period at the
Licensor's facility in Paterson, New Jersey, and then for a period of time, not
to exceed one week, at their respective site.

     (a)  General Indemnification. The Licensee hereby agrees to indemnify and
          hold the Licensor harmless from all loss, expense (including
          reasonable attorney's fees) and damages arising out of any claims,
          demands and liabilities (including claims by Related Companies,
          sublicensees, employees and other third parties) incurred by the
          neglect, crime or other act of any person under control of the
          Licensee being trained by the Licensor.

4.07 Support. The Licensor shall be responsible for and shall render technical
support to the Related Company, Affiliate, sublicensee, and/or the site operator
at a cost of up to $300.00 per hour, but at no time less than $190.00 per hour
(depending on the level of support required), for all technical support, billed
to each quarter hour. All support fees shall be payable within thirty days of
the date the support is rendered.

4.08 Quality Control Monitoring. All quality control monitoring shall be the
responsibility of the Licensor and shall be charged to each site operator
pursuant to the terms of its respective site specific agreement.

4.09 Escalation Factor and Price Adjustment. All prices and fees heretofore
detailed in this Article will automatically escalate per calendar year pursuant
to the following:

     (a)  Per Annum Escalation. The per year fee escalation will be determined
          in accord with the provisions of section C of Attachment B, and as
          specified in each site specific agreement.

     (b)  Discretionary Adjustment. All prices will be subject to further
          discretionary adjustments where market forces and other unforeseen
          factors resulting in increased costs to the Licensor require any such
          increases to be proportionately passed along to the Licensee.

     (c)  Annual Review of Royalties. The parties hereby agree that they shall
          conduct an annual review of the royalty schedule herein defined at or
          about each anniversary date of this agreement, at which time the
          parties agree, as part of the consideration for this Agreement, that
          they may, only upon the express written consent of both parties,
          modify the amounts of the royalties payable hereunder.

4.10 Reports, Records and Audits. The Licensee hereby covenants, as part of the
consideration for this Agreement, that it shall cause to be paid any and all
reasonable costs associated with ensuring compliance with the record keeping,
reporting and auditing procedures as defined herein by causing to be integrated
into any sublicensing or other agreement entered into for the purposes herein
contemplated sufficient provisions to ensure said compliance as against any
Related Company, Affiliate, sublicensee or other third party.

     (a)  Records. Licensee agrees that it shall cause to be kept accurate
          records in full accord with the site specific Standard Operating
          Procedures in sufficient detail to enable the royalties payable
          hereunder to be determined, and agrees to cause such records to be
          made available for inspection from time to time during the term of
          this Agreement. Such inspection shall be made by authorized
          representatives of the Licensor at reasonable intervals during normal
          business hours to the extent necessary to verify the reports and
          payments required as specified herein.

     (b)  Reports. Reports shall be produced, in accord with the notice
          provisions hereof, on an as needed basis to the extent deemed
          necessary by the Licensee and/or Licensor. The intent of any such
          report is to clearly and unambiguously set forth the following
          information:

          (i)  Influent gallonage, flow, rate and throughput statistics measured
               hourly, with specific reference to time of measurement and
               cumulative quantity and flow data;

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          (ii) Analytical data, including but not limited to, concentrations of
               inorganic, and when applicable, organic compounds and pH of both
               the influent and effluent. This data shall be compiled hourly:

         (iii) Precise quantities used of SST and polymer per day;

          (iv) Any additional information deemed necessary and requested by the
               Licensor; and,

           (v) The assessment of the royalties due thereon.

     (c)  Provision of Samples. To the extent that any site specific agreement
          calls for or otherwise requires samples to be taken at any time, such
          samples shall be taken and clearly and unambiguously identified in
          full accord with the site specific standard operating procedure.

     (e)  Procedure on Audit. It is hereby agreed that Licensor shall have the
          privilege of having a certified public accountant, or other
          representative or agent of the Licensor audit all statements of
          account, reports and records required or contemplated by this
          Agreement to be made by Licensee to Licensor, as frequently as
          Licensor may desire to have such audits made, and that Licensee shall
          place at the disposal of said certified public accountant for the
          purposes of this paragraph any and all records essential to the
          verification of such reports. The expense of such audits and
          verifications shall be borne jointly by the Licensee and Licensor
          except upon the development of conditions giving either party
          reasonable cause to suspect any violation of the reporting and record
          keeping requirements defined herein, in which circumstance the site
          operator shall be responsible for all costs and expenses of the audit.

           (i) Reasonable Cause. Any information from whatever source derived
               that may be interpreted by either party as a potential violation
               of any term herein defined.

          (ii) Notice Prior to Audit. The Licensee and/or Licensor shall give to
               the site operator express written notice of its discovery of any
               fact, condition or circumstance giving the auditing party
               reasonable cause to suspect any violation of the terms of this
               Agreement. The site operator shall be given a reasonable
               opportunity to take corrective action not to exceed ten (10)
               business days. If, upon the failure of the corrective action to
               remedy the fact, condition or circumstance giving rise to
               reasonable cause, or upon the failure of the site operator to
               take corrective action, the Licensee and/or Licensor will arrange
               for the audit to commence immediately.

         (iii) Notice of Violation. The Licensee and/or Licensor shall provide
               express written notice of any violation revealed as a result of
               any audit conducted. The site operator will then be obligated to
               cure said violation or shall suffer default pursuant to the
               provisions of Article III hereunder.

          (iv) Examination Upon and After Termination Event. In the event of
               termination or expiration of this Agreement for any reason
               whatsoever, Licensee agrees to provide access, or to otherwise
               cause access to be provided, to the Licensor, its auditors,
               accountants or agents to inspect all said records and books of
               Licensee, and/or any sublicensee and/or any site operator and to
               investigate generally all transactions of business carried on by
               Licensee and/or any sublicensee and/or any site operator, or any
               of its Related Companies, in the Grant Territory pursuant to this
               Agreement and the License hereby granted, for a one (1) year
               period of time after such termination.

4.11 Interest on Overdue Payments. Licensee shall cause to be paid to Licensor
with interest thereon at the rate of 18% per annum any and all amounts past due
and owing for sixty (60) days hereunder to the Licensor, calculated from the
date when such payments are due and payable as provided herein to the date

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of payment. This provision shall survive termination of this Agreement and shall
remain in effect until all sums due including interest thereon are paid in full
without offset or counterclaim.

4.12 Acceleration of Overdue Account. The payment provisions of this agreement
are to be strictly construed with time being of the essence with regard to all
payments to be made hereunder by the Licensee to the Licensor. The failure of
the Licensee to make such payments on their due dates shall be deemed a material
breach of this Agreement, and the Licensor, at its option, may terminate this
Agreement upon notice to the Licensee.

                                    ARTICLE V
            OTHER PRINCIPAL RIGHTS AND OBLIGATIONS; PATENT PROVISIONS

5.01 Representations and Warranties of Licensor. As of the effective date of
this Agreement, Licensor represents and warrants to Licensee as follows:

     (a)  Organization and Qualification. Licensor is a corporation duly
          organized, validly existing and in good standing under the laws of the
          State of New York and has the corporate power and authority to enter
          into this Agreement, to consummate the transactions contemplated
          hereby and thereby. Licensor is duly licensed or qualified to do
          business, and is in good standing, in every jurisdiction in which it
          is required to be so licensed or qualified due to its business or
          ownership of its assets and where failure to be so licensed or
          qualified would have a material adverse effect on its ability to
          perform its obligations hereunder.

     (b)  Authority. Licensor has full power, capacity and authority (corporate
          or otherwise) to execute and deliver this Agreement upon the
          concurrent payment to Licensor of the required licensing fees and
          payments, and to consummate the transactions contemplated hereby. The
          execution and delivery of this Agreement, and the consummation of the
          transactions contemplated hereby, have been duly and validly
          authorized by Licensor, and no other proceedings (corporate or
          otherwise) on the part of Licensor are necessary to authorize this
          Agreement, or to consummate the transactions contemplated hereby. This
          agreement has been duly and validly executed and delivered by Licensor
          and (assuming the valid execution and delivery of the agreement by
          Licensee) constitute legal, valid and binding agreements of Licensor.

     (c)  Consents and Approvals. There is no authorization, consent, order or
          approval of, or notice to or filing with, any individual or entity
          required to be obtained, given or made in order for Licensor to
          execute and deliver this Agreement, to consummate the transactions
          contemplated hereby and thereby and fully perform its obligations
          hereunder and thereunder.

     (d)  Absence of Conflicts. The execution, delivery and performance by
          Licensor of this Agreement, and the consummation by Licensor of the
          transactions contemplated hereby will not, with or without the giving
          of notice or the lapse of time, or both, (i) violate any provision of
          law, statute, rule or regulation to which Licensor is subject, (ii)
          violate any order, judgment or decree applicable to Licensor, or (iii)
          conflict with, or result in a breach or default under, any term or
          condition of the charter or by-laws of Licensor, if applicable, or any
          agreement or other instrument to which Licensor is a party or by which
          Licensor is bound, or to which any of Licensor's assets are subject.

     (e)  Brokers and Finders. Neither Licensor nor any of its officers,
          directors, employees, Affiliates or associates has employed any
          broker, finder or investment banker, or incurred any liability for any
          brokerage fees, commissions or finders' fees in connection with this
          Agreement or the transactions contemplated by this Agreement.

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                                       11

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     (f)  Ownership and Right to License. Licensor represents and warrants that
          it is the owner of the world-wide exclusive right, title and interest
          in and to the applications for letters patent for the Licensed
          Material, and that it is has the sole right to grant licenses under
          said applications for letters patent, prospective letters patent,
          reissues and extensions, of the scope herein granted.

     (g)  Commercial Utility. Licensor hereby represents and warrants that the
          Licensed Material has commercial utility.

     (h)  Validity. Licensor hereby represents and warrants that said
          application for letters patent is genuine and valid.

5.02 Acknowledgment of Validity. Licensee hereby covenants and agrees that it
will not contest, nor assist others in contesting, the validity of the letters
patent, or applications thereto, of the United States which are the subject of
this Agreement, nor the title thereto of Licensor.

5.03 Third party Infringement. If at any time any third party shall infringe the
patent(s) licensed hereunder in the Grant Territory, then Licensee and/or the
Licensor shall, promptly either (1) obtain a discontinuance of said infringing
operations or (2) bring suit, bringing said suit in the name of the Licensee, or
if so required by the laws of the State of New York, bringing suit in the name
of the Licensor or joining Licensor as a party plaintiff with the Licensee. For
this purpose Licensor shall execute such legal papers necessary for the
prosecution of such suit as may be reasonably requested by Licensee. The
Licensor further covenants that it will otherwise provide all reasonable
assistance to the Licensee in the prosecution of any such suit.

     (a)  Prosecution of Rights. Licensee, with the reasonable assistance of the
          Licensor, agrees to bring and diligently prosecute such suits for the
          infringement of the aforesaid patent(s) as may reasonably be necessary
          to prevent unlicensed competition materially interfering with the
          businesses of the Licensee and Licensor hereunder. Whenever any suit
          is brought against any infringer by Licensee as above provided,
          Licensee shall immediately notify Licensor of such suit. The costs and
          expenses of such suit and all recoveries therefrom shall be shared
          equally by the parties hereto, except that, at the option of the
          Licensor, the Licensor's contribution shall be limited to one-half
          (50%) of the royalties payable to Licensor by Licensee during the
          pendency of any such action.

          (i)  Trigger Event; Duties Thereafter. If at any time hereafter any
               third party shall infringe any unexpired patent licensed
               hereunder and Licensor shall give notice in writing to Licensee
               of the existence of such infringement, including such evidence of
               infringement as Licensor may possess and if Licensee shall fail
               to assist in the suit against such third party as provided above
               or obtain a discontinuance of such infringing operations within
               six (6) months of the date of receipt of such notice, then
               Licensor may at its election either terminate this Agreement and
               the rights, privileges and license herein granted and any
               sublicenses that may be granted by the Licensee (pursuant to
               provision 2.05 of Article II above) or bring suit in its own name
               as against such infringer. Should Licensor bring suit in its own
               name as hereinbefore provided, Licensee shall execute such legal
               papers necessary for the prosecution of such suit as may be
               requested by Licensor, and Licensor shall be liable for all costs
               and expenses of such litigation and shall be entitled to receive
               and retain all recoveries therefrom. In the event that the
               Licensor should undertake such litigation, then the Licensor has
               the right to cancel the exclusive features of this license and
               may thereupon license others in the Grant Territory. In case the
               Licensee terminates this Agreement by material breach or
               otherwise failing to satisfy its duties as defined herein,
               Licensee shall assign to Licensor all sublicenses

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                                       12

<PAGE>


               that may have been granted hereunder pursuant to provision 2.05
               of Article II of this Agreement.

          (ii) Rights Reserved to Licensor. Licensor shall have the right, in
               any suit brought by the Licensee, pursuant to the foregoing, to
               be represented at its own expense by counsel of its own selection
               to the extent of having access to full information and
               opportunity to be heard in the councils and attorneys of the
               Licensee, but such expense shall not be considered as costs or
               expenses of the litigation unless Licensor elects to participate
               in the suit as provided in subparagraph (a) of this clause.

     (b)  Defense of Third Party Suit. The Licensor agrees during the term of
          this Agreement to defend Licensee against any suit for infringement of
          any patent of third parties covering the Licensed Material so long as
          said patent(s) were issued prior to the effective date of this
          Agreement in the Grant Territory. This obligation is subject to the
          following conditions:

          (i)  Licensee must have given notice to Licensor of the claim of
               infringement within twenty (20) days after receipt of service
               thereof upon Licensee;

          (ii) Licensor's liability shall be restricted to the defense of any
               suits arising from claims based on any of the Licensor's letters
               patent, for the Licensed Material granted hereunder; and,

         (iii) Licensee shall render reasonable assistance to Licensor or, upon
               the request of the Licensee and at the Licensor's option, shall
               be permitted to defend against the suit and shall be entitled to
               receive and retain all recoveries, if any, therefrom.

     (c)  No Effect on Royalties. Upon the circumstance of any suit for
          infringement being brought by Licensee and/or Licensor or against
          Licensee and/or Licensor, there shall be no effect upon the amount or
          schedule of royalties owing from the sublicensee or site operator as
          so defined in Article IV hereunder.

5.04 Improvements. Licensee, as a part of the consideration for the License
hereby granted to it, hereby agrees to submit to Licensor, during the term of
this Agreement, all developments or improvements in the Licensed Material or
Know-how made by or at the instance of the Licensee, and Licensee hereby agrees
that, during the life of this agreement, the Licensor and each of its
Affiliates, both past and future, shall have the exclusive right to said
developments and improvements, whether patented or unpatented.

     (a)  Assignment to Licensor. Said developments or improvements shall be
          entirely assigned to the Licensor and shall be the sole property of
          the Licensor, except, however, that the Licensee shall automatically
          have an exclusive license thereunder in the Grant Territory without
          additional charge.

     (b)  Development or Improvement. As used herein, the terms development and
          improvement mean any design, process, method, modification, idea,
          concept or Technology, of whatever form, the use of which affects the
          Licensed Material in any one or more of the following ways:

           (i) Reduces process or Technology costs;

          (ii) Improves the efficiency or performance of the Process in any
               manner;

         (iii) Improves the efficiency or performance of the Technology in any
               manner;

          (iv) Improves reaction efficiency or performance in any manner;

           (v) In any way broadens the scope or range of Process and/or
               Technology applicability;

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                                       13

<PAGE>

          (vi)  Increases marketability; or,

          (vii) Results in any further invention that was reasonably discovered
                as a direct or indirect result of the Licensor disclosing any
                information herein contemplated as necessary to the rights,
                privileges and license herein granted.

     (c)  Licensee's Covenant to Disclose. The Licensee hereby covenants to
          immediately communicate any developments, improvements, modifications,
          further inventions, and  designs it or its Related Companies or
          Affiliates may discover, make, or develop with respect to the Licensed
          Material, Know-how and other information herein contemplated as 
          necessary to the rights, privileges and license herein granted, and
          shall fully disclose to the Licensor the nature and manner of applying
          and utilizing such improvements, developments, modifications, further
          inventions and designs. Failure to promptly comply with this covenant
          in any manner shall be deemed a material breach for which the Licensor
          may pursue termination in full accord with the provisions of this
          Agreement.

     (d)  Development or Improvement by Licensor. The Licensor hereby agrees, as
          part of the consideration for this Agreement, that it shall make
          available all direct Developments and Improvements to the Licensed
          Material, made by or at the instance of the Licensor, for no
          additional cost and under the same terms as this Agreement, except as
          provided for in subparagraph 5.04(d)(i) hereof. The Licensee hereby
          agrees that, during the life of this Agreement, the Licensor and each
          of its Affiliates, both past and future, shall have the exclusive 
          right to said Developments and Improvements, whether patented or
          unpatented. This provision shall apply only to those direct
          Developments and Improvements of the Licensed Material that are
          applicable to the same market (e.g., liquid metal bearing wastes) and
          the same media (e.g., liquid) that the Licensed Material presently
          applies.

          (i)  Licensee to Bear Costs of Research and Development. The Licensee
               hereby agrees that it shall bear all costs and shall compensate
               Licensor for all reasonable expenses incurred by the Licensor in
               research and development of any direct Developments or
               Improvements as provided for by subparagraph 5.04(d) hereof. The
               Licensee shall pay this amount to the Licensor by reducing its
               percentage of the gross receipts as provided in provision 4.02
               hereof and Attachment B, annexed hereto, by 10% to 40% for a
               period of time until the amount owing under this provision is
               paid in full.

     (e)  New or Different Market. In the event that any Development or
          Improvement on the Licensed Material enables access to a new market
          (e.g., solid, air or radioactive waste), the parties hereby agree that
          the terms of this License shall not apply. In such instance, the
          Licensee shall have the right of first refusal on entering into a
          separate license with the Licensor for such new market Developments or
          Improvements.

5.05 License Under Foreign Patents; Requirement of Foreign Patents. The Licensee
shall have the right to the Licensed Material herein contemplated under any and
all foreign letters patent now pending or hereafter to be filed expressly and
exclusively corresponding to the herein defined United States letters patent.
Under no circumstance shall the Licensee be permitted to use or sublicense the
Licensed Material in any geographic region or country for the purposes herein
contemplated prior to the Licensor's filing of the application for letters
patent corresponding to the herein defined United States letters patent in that
geographic region or country.

5.06 Licensor's Covenant to Disclose. In the event that the Licensor contacts or
is ever contacted directly by any third party seeking to remediate, recover
and/or treat liquid streams of wastes containing metals in the Grant Territory,
the Licensor hereby covenants to disclose the identify of any such party to

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                                       14
<PAGE>

the Licensee and to simultaneously therewith refer such party to the Licensee,
except as provided for in Attachment C, annexed hereto.

5.07 Sales and Marketing; Commissions to Licensor. The Licensor shall have the
right to engage the market on its own behalf provided that any such sales shall
be made through the Licensee, upon which the Licensee shall pay a commission to
the Licensor's sales or marketing agent, which commission shall be paid out of
the Licensee's percentage of the gross per gallon receipts, calculated on a per
site basis. The commission shall be paid in accord with the provisions of the
relevant Licensor marketing agreement. All Licensor costs of sale shall be 
borne by the Licensee, and shall be deducted from its percentage of the gross
per gallon receipts, calculated on a per site basis.

5.08 Profit and Commission on Licensor Sale of Licensee Product. In the event
that the efforts of the sales or marketing agents of the Licensor result in any
sale of any product or service of the Licensee, the Licensee shall pay to the
Licensor 50% of the relevant gross receipts, calculated on a per site basis
(see Attachment B), derived from any use or sale of any product or service of
the Licensee in the Grant Territory. The Licensor shall pay the relevant
commission to the Licensor's sales or marketing agent responsible for said sale
of the Licensee's product or service.

                                   ARTICLE VI
        KNOW-HOW, TECHNICAL ASSISTANCE, PURCHASE OF ESSENTIAL COMPONENTS

6.01 Know-how Commitment. The Licensor shall from time to time, and to such
extent that it shall consider to be reasonably necessary for the performance of
this Agreement, furnish to Licensee information essential to determining the
nature and extent of the applicability of the Technology and Process. Only the
Licensor has the right to divulge Know-how, and at no time shall the Licensee or
its Related Companies or Affiliates divulge any Know-how taught or otherwise
discovered.

     (a)  Delimitation of Commitment. The Licensor shall communicate to the
          Licensee upon request such information relating to the Licensed
          Material which shall in the opinion of the Licensor be of use to the
          Licensee in its licensed operations. Such information shall, at the
          option of the Licensor, consist of any patent disclosures and
          applications, technologies, trade secrets, designs, formulas, 
          processes, Know-how, contracts, samples, feasibility studies,
          work-plans, project documentation, books, instructional volumes, 
          notes, drawings, writings, documents, files, models, photographs,
          videos, drawings, sketches, ideas, concepts and any improvements
          thereto, which are the subject matter of this Agreement, and which is
          directly applicable to the operations of the Licensee or its Related
          Companies or Affiliates. The Licensor shall undertake in the initial
          feasibility studies, work plan preparations, designs and engineering
          development, pursuant to the terms herein, of each individual site
          with respect to the Licensed Material and may provide special,
          specific or additional information pertaining thereto to the Licensee
          or its Related Companies or Affiliates or sublicensees. The Licensee
          shall cause to be paid the relevant support owing to the Licensor for
          such additional information pursuant to the applicable fees delineated
          in Article IV. To the extent that the Licensor in its own opinion
          deems this information to be necessary for the Licensee's use of the
          Licensed Material, the Licensor shall furnish such specific Know-how
          as the Licensor deems required and has in its possession.

     (b)  Covenant to Provide Technical Assistance. On the cost basis defined in
          Article IV and other terms herein defined, the Licensor shall provide
          all reasonable support to the Licensee and/or its Related Companies,
          Affiliates, sublicensees or other third parties in the use of the
          Licensed Material on a site by site basis.

     (c)  Excluded Know-how. Information with respect to research and advance
          development activities is not included in the scope of this Agreement
          and shall not be made available

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                                       15

<PAGE>
          hereunder. Nothing contained in this Agreement shall oblige the
          Licensor or its Affiliates to make available to Licensee or its
          Related Companies or Affiliates any information concerning any further
          invention, development or improvement of the Licensor until an
          application for letters patent thereon has been filed in the United
          States patent office.

6.02 Provision of Necessary Information. The Licensee shall cause to be provided
to the Licensor any and all information requested and otherwise known to be
required, as detailed hereafter, so that the Licensor may conduct an initial
feasibility study and prepare a preliminary proposal for each site. The
information required by the Licensor shall include, but shall not be limited to:

     (a)  Nature, extent and relative degradation of the site with specific
          identifying information;

     (b)  Quantity, flow, throughput and influent source characteristics as
          applicable;

     (c)  Specific details on the existing industrial processes and operations;

     (d)  Sufficient characteristic samples of the waste intended to be
          remediated and/or treated by the Licensed Material, not less than
          one (1) gallon for liquids and five (5) pounds for soils, sludges, and
          other semi-solid wastes;

          (i)  Sampling Procedure. The sampling procedures which shall be
               provided in the site specific SOP manuals.

     (e)  Desired nature, level and extent of treatment and/or recovery;

     (f)  Specific site information (including schematics if accessible)
          detailing the site accessibility, structural design requirements,
          sewer availability, power and water supply availability, power type;

     (g)  Overall geophysical and hydraulic characteristics of the site; and,

     (h)  Any other information deemed necessary by the Licensor on a site
          basis.

6.03 Non-Conformance of Information; Off-Spec Wastes and/or Sites. As provided
herein, the Licensor will be performing a feasibility study for each site. The
parties recognize that this study is critical for determining the nature and
the extent of the applicability of the Technology and Process, as well as the
design, engineering and construction for each site. In order to perform this
feasibility study, samples and other information must be provided. If the
actual site or waste characteristics materially differ from the samples,
characteristics, the site or waste will be deemed by the Licensor to have not
met the original specifications of the site. The non-conforming waste or site
will be deemed to be off-spec. The Licensee hereby agrees that it shall bear all
reasonable costs and expenses associated with re-performing any additional 
feasibility studies, designs, proposals or work-plans.

6.04 Licensee to Bear Costs.

     (a)  Set-up. The Licensor will bear the costs of preparing its per site
          process design proposal and work-plan. The Licensee will cause the
          sublicensee and/or site operator, at its cost, to obtain all
          necessary approvals needed to operate the site, and will bear all
          remaining costs associated with site set-up, including but not limited
          to final process design, engineering, construction and operation. Any
          support required at any time will be provided by the Licensor on the
          cost basis defined in Article IV. The Licensor or Licensee shall
          designate a third-party engineering and/or construction firm
          (hereinafter the "engineering contractor") for each site. The
          engineering contractor shall work with the Licensor and will be
          required to enter into separate agreements (including but not limited
          to nondisclosures and indemnifications) directly with the Licensor.
          The Licensee will bear any additional costs which may be charged for
          any regulatory, legal or permitting requirements, which requirements
          are the sole obligation of the Licensee or its Related Companies or
          the engineering contractor to comply with.

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                                       16

<PAGE>

     (b)  Covenant to Assist in Design, Engineering and Construction. Upon
          satisfaction of the condition that the engineering contractor enters
          into any separate agreements with Licensor as the Licensor deems
          necessary, the Licensor convenants to assist the engineering
          contractor in the design, engineering and construction of that portion
          of any site in which the remediation, recovery and/or treatment
          activities contemplated by this Agreement shall be conducted. The
          Licensor further covenants that, to the extent only that it is able,
          it will assist the engineering contractor in a reasonable manner in
          the design, engineering and construction of other portions of any
          site. The Licensor shall furnish that reasonable Know-how necessary to
          comply with the conditions of this covenant.

          (i)  Any support required at any time to comply with the conditions of
               this covenant will be provided by the Licensor on the cost basis
               defined in Article IV.

     (c)  Covenant to Render Technical Assistance for Operation. The Licensee
          shall designate for each site a Related Company, third party or itself
          as the Site Operator. The site operator, may at the option of the
          Licensor, be required to enter into separate agreements (including but
          not limited to nondisclosures and indemnifications) directly with the
          Licensor. This covenant shall only be given upon the execution of
          these agreements in the event that the Licensor elects to have said
          agreements executed.

          (i)   Upon satisfaction of the foregoing condition, the Licensor
                covenants to assist and to render all reasonable technical and
                other support required to initiate and maintain operation at
                each site, for only those portions of each site in which the
                remediation, recovery and/or treatment activities contemplated
                by this Agreement shall be conducted.

          (ii)  Any support required at any time to comply with the conditions
                of this covenant will be provided by the Licensor on the cost
                basis defined in Article IV.

          (iii) The determination as to whether any on-site assistance by the
                Licensor is required will be made solely by the Licensor.

6.05 Purchase of Essential Components Exclusively from Licensor. The Licensee
shall cause the sublicensee and/or site operator to purchase all components
termed herein as essential directly from the Licensor pursuant to the following
terms and conditions:

     (a)  Essential Reagents. The Licensee, as a part of the consideration for
          the License herein granted, hereby agrees to purchase the essential
          reagents directly from the Licensor. There are two essential reagents
          for which this term applies: (1) SST; and, (2) a required polymer
          compound. SST shall be purchased on a per gallon basis and the polymer
          shall be purchased on a per pound basis pursuant to the cost basis
          provided for in Article IV.

          (i)  Requirement of Manufacturing. At no time, except upon the express
               written consent and control of the Licensor, shall SST or the
               polymer be manufactured in the Grant Territory.

          (ii) Shipping. All costs of shipment shall be borne by the site
               operator. The method of shipment shall be f.o.b. (shipping) from
               point of manufacture, having that meaning ascribed to it by
               standard convention.

     (b)  Essential Process Equipment. Except upon the express written consent
          of the Licensor, the Licensee, as a part of the consideration for the
          License herein granted, hereby agrees to cause the sublicensee and/or
          site operator to purchase the essential process equipment directly
          from the Licensor. All pieces or categories of equipment which shall
          be deemed essential and shall be purchased directly from the Licensor
          shall be detailed in the Site Specific Agreement for each site.

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                                       17

<PAGE>

          (i)  Shipping. All costs of shipment shall be borne by the site
               operator. The method of shipment shall be f.o.b. (shipping) from
               the point of manufacture and/or distribution, having that meaning
               ascribed to it by standard convention.

     (c)  Licensor Covenants to Supply Essential Components. The Licensor hereby
          covenants that it will within a reasonable time supply the aforesaid
          essential components to the Licensee or its designated recipient on an
          as needed basis.

          (i)  Ability to Supply. As of the date hereof, Licensor represents and
               warrants to Licensee that it presently has and shall have the
               ability to supply the aforesaid essential components to the
               Licensee or its designated recipient.

     (d)  Excluded Components. The Licensee or its Related Companies or any
          engineering contractors shall source and provide for all components
          not herein referenced or provided for in any Site Specific Agreement.

6.06 Covenant to Provide Training. Licensor hereby covenants and agrees to train
the personnel of the site operator for the requisite laboratory and process
operations.

     (a)  Procedure on Training. All personnel shall be trained over the course
          of two (2) weeks at the Licensor's principal facility at One KBF Plaza
          in Paterson, New Jersey, and a period of time not to exceed one (1)
          week on location at the individual site.

     (b)  Standard Operating Procedure. As part of the preparation of the final
          design proposal for each site, the Licensor shall prepare a site
          specific Standard Operating Procedure (the "SOP") manual for the site.
          All personnel will be trained according to the standard operating
          procedure of their respective sites.

     (c)  Indemnification on Failure to Comply with the SOP. The Licensee hereby
          agrees to indemnify and hold the Licensor harmless from all loss,
          expense (including reasonable attorney's fees) and damages arising out
          of any claims, demands and liabilities (including claims by Related
          Companies, sublicensees, employees and/or other third parties)
          incurred by its, their own or the site operator's neglect arising out
          of the failure to strictly abide by and adhere to the terms and
          instructions specified in the site SOP manual and the relevant Site
          Specific Agreement.

6.07 Assumption of Risk by Licensee. Licensee agrees that it shall be
responsible for damage to its or its Related Companies' property and for injury
or death of its employees and agents caused by any acts or omissions to act
arising from its or its sublicensee's direction, supervision or instruction,
including negligence, of the employees or agents of the Licensor, during the
performance of this Agreement. The Licensee agrees to release the Licensor from
any and all liability for loss or damage so caused to its or its Related
Companies' properties, and further agrees to indemnify and hold harmless the
Licensor against all claims and causes of action arising out of such damage to
property or such injury or death of employees or agents, except where actions or
omissions of the Licensor or its agents give rise to any claims, demands and
liabilities.

     (a)  Environmental, Health and Safety Considerations. Since the Licensee
          will hire or cause to be hired various engineering contractors, the
          Licensee expressly acknowledges that it will be the responsibility of
          such engineering contractors as well as the Licensee, not the
          Licensor, to ensure that each site is ultimately designed, engineered,
          constructed and thereafter operated in accordance with the applicable
          safety, health and environmental standards or requirements of the
          Grant Territory.

     (b)  General Indemnification. Licensee further indemnifies and holds
          Licensor harmless from any and all claims, demands, causes of action
          and all costs of defense incurred by the Licensor (including court
          costs and reasonable attorney's fees actually incurred) which

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<PAGE>

          claims, demands or causes of action are asserted by any third party
          whatsoever including employees of the Licensee and its Related
          Companies and are caused or alleged to be caused by reason of any
          fault or defect in the design, construction or operation of any site.

     (c)  Survival. The provisions of this clause shall survive expiration or
          termination of this Agreement for any reason and shall not be affected
          thereby.

6.08 Maintenance of Secrecy; Restrictions; Survival. It is recognized by the
parties hereto that information in the form of Know-how will be disclosed,
taught or delivered by the Licensor pursuant to this Agreement and will contain
and incorporate confidential information in which Licensor had and will continue
to have a proprietary interest as the owner of such information, and Licensee
agrees to maintain, and will maintain, as confidential any and all information
disclosed to Licensee, directly or indirectly, pursuant to this Agreement.
Licensee will obtain from its employees, contractors, consultants, agents,
stockholders and other persons having access to Know-how acquired by Licensee
from Licensor (or any possible third party infringer), pursuant to this
Agreement, duly binding agreements from such persons, in a form acceptable to
Licensor, to maintain in confidence any such information disclosed to such
person by Licensee. Licensee agrees to reveal Know-how revealed to it by
Licensor pursuant to this Agreement, only to such persons and only to the extent
as may be required to permit Licensee to make possible the utilization of such
Know-how pursuant to this Agreement. The provisions of this paragraph shall
survive the termination of this Agreement.

                                  ARTICLE VII
            DISTRIBUTION, MARKETING, MINIMUM SALES AND BEST EFFORTS

7.01 Authorized Sales Channel. Licensee shall arrange for the sale or use of the
Licensed Material in the Grant Territory.

7.02 No Competitive Products. Licensee hereby covenants and agrees that it shall
not sell or use any material which may be regarded by the Licensor as directly
competitive with the Licensed Material, except upon the express written consent
of the Licensor.

7.03 Reciprocal Exchange of Commercial Information. The Licensor agrees to
furnish to the Licensee all commercial and marketing information and contacts
which it has heretofore obtained or developed in connection with the
exploitation of the Licensed Material in the Grant Territory, and the Licensee
agrees to furnish to the Licensor all commercial and marketing information and
contacts which it has heretofore obtained or developed in connection with the
exploitation of the Licensed Material in the Grant Territory.

7.04 Best Efforts of Licensee. The Licensee hereby covenants and agrees to use
its best efforts to promote the sale and use of the Licensed Material in the
Grant Territory. The Licensee shall as soon as possible after receiving the
Licensed Material herein granted begin to sell and to arrange for penetration of
the Grant Territory. The Licensee shall at all times throughout the life of this
Agreement exert its best efforts to create, service, supply and otherwise
satisfy as extensive a market for the Licensed Material in the Grant Territory
as is possible. Breach of this provision in any manner shall be deemed a
material breach for which the Licensor may pursue termination in full accord
with this Agreement.

     (a)  Duty to Exploit. It is understood and agreed that the Licensee
          undertakes for itself the obligation to sell the Licensed Material,
          but shall not incur any pecuniary liability for breach of this
          undertaking, it being understood and agreed that if the Licensee
          declines to accept otherwise feasible orders from any purchasers or
          fails to meet the requirements of any purchaser of the Licensed
          Material provided for in orders accepted by the Licensee, the Licensor
          may license such other third parties to supply the Licensed Material
          to such purchases. Said licenses to said third parties shall be
          confined to supplying the Licensed Material to only such purchasers
          from whom the Licensee may have refused to accept orders or whom the
          Licensee has failed to supply, and said license shall be limited as to

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                                       19

<PAGE>

          time only to the extent that the Licensee corrects such non-conforming
          conduct. The Licensor agrees that, in the event of the Licensee's
          breach of this duty to exploit the Licensed Material, no license shall
          be granted to any third party upon terms more favorable than the terms
          then in force between the Licensee and the Licensor.

     (b)  Sales Organization and Efforts. The Licensee agrees to maintain
          suitable sales personnel and exert its best efforts toward vigorously
          promoting the sales and use of the Licensed Material, including prompt
          handling of all inquiries, personal calls on customers and/or
          potential site operators and local marketing to the extent permissible
          or practical in the Grant Territory.

7.05 Minimum Sales Requirement. If within any one (1) year period, as measured
by the anniversary date of the first Site Specific Agreement, there shall be any
less than ten (10) additional individual sites in operation in the Grant
Territory using the Licensed Material (i.e., ten additional sites each year), or
otherwise in substantial completion of construction, the Licensor may, at its
option, choose to excise the exclusivity provisions from this Agreement and
license the Licensed Material to others for the exploitation of the Grant
Territory market. This requirement shall accrue and is to be satisfied only by
the sales and marketing efforts of the Licensee; any site or contract that
results from the sales or marketing efforts of the licensor shall not be
included in the accrual or satisfaction of this requirement. Breach of this
provision in any manner shall be deemed a material breach for which the Licensor
may pursue termination in full accord with this Agreement.

7.06 Remedy on Inability to Supply Demand. In the event of or at the time the
Licensee should be unable to supply the Demand for the Licensed Material, the
Licensor shall have the right after reasonable notice to the Licensee to engage
in sufficient efforts (including licensing to others) to fill such demand over
and above the then present capacity of the Licensee but only so long as the
Licensee shall be unable to fulfill said demand or otherwise gives its consent
to the Licensor to engage in such efforts. Otherwise, the Licensor shall have
the right to pursue termination in accord with Section 3.02(a)(iv) hereof.

                                  ARTICLE VIII
                 QUALITY CONTROL; STANDARD OPERATING PROCEDURES

8.01 Quality Control. Since quality control and quality assurance protocols
(hereinafter "QC/OA") are essential to the efficient operation of the Technology
and Process, and the failure to conform to these protocols may result in the
failure of the Technology and Process to function as contemplated hereby, the
Licensee hereby agrees that it shall, pursuant to this Agreement and each
individual Site Specific Agreement, cause strict adherence to all QC/QA
standards for each site precisely equivalent to those provided for in the
Standard Operating Procedure (the "SOP") manual, which manual shall be provided
to the Licensee and/or site operator and the individual employees of the site
operator by the Licensor.

8.02 Standard Operating Procedures. As part of the preparation of the final
design proposal for each site, the Licensor shall prepare a site specific SOP
manual for each site. All personnel trained by the Licensor will be trained
according to the standard operating procedure of their respective sites. All
necessary copies of the SOP manual shall be provided to trained personnel and/or
the site operator and/or the Licensee at the expense of the Licensor.

8.03 QC/QA Reporting Requirement. The Licensee shall, pursuant to this Agreement
and each individual Site Specific Agreement, cause to be enforced strict
compliance with all site specific QC/QA reporting requirements detailed in each
site specific SOP manual, to be provided prior to the commencement of operations
at each site.

8.04 Procedure on Failure to Comply. Strict adherence to the QC/QA protocols and
the SOP shall be required. Since strict compliance with the SOP and QC/QA
protocols is critical to the effective use of the Licensed Material, the
Licensee, as a part of the consideration for the License herein granted, agrees
to

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                                       20

<PAGE>

cause strict compliance with the SOP and QC/QA protocols. The Licensee further
covenants that it shall have the responsibility and authority to enforce
compliance of these protocols, and shall do so in strict compliance with the
terms and provisions of this Article.

     (a)  Notice of Non-Compliance. Any deviation from the QC/QA protocols or
          any material operating provision of the SOP will result in the
          issuance of a Notice of Non-Compliance. The notice will issue to the
          Licensee as well as to the site operator. The site operator will then
          be given ten days (10) to cure the compliance deficiency. If the
          deficiency remains uncured, an additional notice will issue. The site
          operator will be given ten (10) additional days to cure the
          deficiency. This process of notice and instruction to cure will repeat
          a maximum of five (5) times for the same deficiency. If the deficiency
          at issue still remains uncured, the Licensor shall issue to the
          Licensee and the site operator a Notice of Issuance of Penalty.

     (b)  Issuance of Penalty. The Licensor may issue to the Licensee a fine not
          to exceed $15,000 for each penalty required to be imposed. The
          Licensee shall then enforce and make all reasonable efforts to collect
          this penalty as against the site operator.

     (c)  Visitation. The Licensor, at its option, may at any time elect to
          visit the site in violation in order to ensure correction of any
          deficiency. The reasonable costs of any such visitation shall be borne
          equally by the Licensee and Licensor.

     (d)  Material Breach. Continued persistent failure to correct any one
          single violation and/or deviation from the procedure as outlined
          herein and in the individual per site SOP manuals over the course of
          any six (6) month period will be deemed a material breach for which
          the Licensor may pursue termination in full accord with the provisions
          of this Agreement.

                                   ARTICLE IX
                                MUTUAL COVENANTS

Each of the parties hereto covenants to the other party as follows:

9.01 Incorporation of Previous Agreements. The parties hereto agree that all
confidential information and/or evaluation materials, respectively defined in
the Nondisclosure and Confidentiality Agreements (collectively, the
"confidentiality agreements"), executed by the parties on December 30, 1997, and
disclosed in furtherance of this Agreement, shall remain confidential between
the parties and there will be no disclosure of these materials except as
provided under the terms of the confidentiality agreements and this Agreement.

9.02 Confidentiality of Terms. With the exception of acknowledging that this
exclusive license for the territory has been established for a minimum period of
ten (10) years, all other terms relating to this contract shall remain
confidential between the parties and there shall be no disclosure of them by a
party without the written consent of the other party, except as is necessary to
comply with any legal and/or accounting disclosure requirements.

9.03 General Confidentiality. Except as otherwise required by law or in
connection with judicial, administrative or arbitration proceedings (in which
case the disclosing party shall be afforded a reasonable opportunity to seek a
protective order), each of the parties agrees not to (i) disclose any
confidential information herein defined of the other party, or the remaining
terms of this Agreement, to any individual or entity (other than its directors,
officers, employees, agents and representatives with a need to know such
confidential information) or (ii) use any confidential information of the other
party for any purpose other than consummating the transaction contemplated
hereby and, with respect to Licensee, conducting the remediation, recovery
and/or treatment contemplated herein.

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<PAGE>

9.04 Mutual Cooperation. The parties acknowledge that in order to further the
purposes of this Agreement, information containing or consisting of trade
secrets, customer lists and other confidential information may be communicated
by either party to the other. Such information may take the forms of plans,
drawings and data, and will be deemed confidential unless otherwise designated
by the Licensor of Licensee as "Non-Confidential Information." The parties
hereto agree to cooperate after the execution of this Agreement to the fullest
extent reasonably necessary to consummate fully the transaction contemplated
hereby, including but not limited to accounting for the transaction hereunder.

9.05 General Indemnification of Licensor. The Licensee shall not incur any
liability or indebtedness in the name of the Licensor, nor do or suffer any act
or thing which may render the Licensor liable for the payment of any money to
any third person for any purpose whatsoever, except as herein otherwise
provided. The Licensee hereby agrees to indemnify and hold the Licensor harmless
from all loss, expense (including reasonable attorney's fees) and damages
arising out of any claims, demands and liabilities incurred by its own neglect
in connection with the fulfillment of the terms and conditions of this
Agreement.

                                   ARTICLE X
                            MISCELLANEOUS PROVISIONS

10.01 Representations and Warranties of Licensee. As of the date hereof,
Licensee represents and warrants to Licensee as follows:

     (a)  Authority. Licensee has full power, capacity and authority (corporate
          or otherwise) to execute and deliver this Agreement, and to consummate
          the transactions contemplated hereby. The execution and delivery of
          this Agreement, and the consummation of the transactions contemplated
          hereby, have been duly and validly authorized by Licensee, and no
          other proceedings (corporate or otherwise) on the part of Licensee are
          necessary to authorize this Agreement, or to consummate the
          transactions contemplated hereby. This agreement has been duly and
          validly executed and delivered by Licensee, and (assuming valid
          execution and delivery by Licensor) constitutes the legal, valid and
          binding agreement of Licensee.

     (b)  Consents and Approvals. There is no authorization, consent, order or
          approval of, or notice to or filing with, any individual or entity
          required to be obtained or given in order for Licensee to execute and
          deliver this Agreement, to consummate the transactions contemplated
          hereby and to fully perform its obligations hereunder.

     (c)  Absence of Conflicts. The execution, delivery and performance by
          Licensee of this Agreement, and the consummation by Licensee of the
          transactions contemplated hereby and thereby, will not, with or
          without the giving of notice or lapse of time or both, (i) violate any
          provision of law, statute, rule or regulation to which Licensee is
          subject, (ii) violate any order, judgment or decree applicable to
          Licensee, or (iii) conflict with or result in a breach or default
          under any term or condition of the Certificate of Incorporation or By
          Laws of Licensee, or any agreement or other instrument to which
          Licensee is a party or by which it is bound.

     (d)  Brokers and Finders. Neither Licensee nor any of its officers,
          directors, employees, Affiliates or associates has employed any
          broker, finder or investment banker, or incurred any liability for any
          brokerage fees, commissions or finders' fees in connection with this
          Agreement or the transactions contemplated by this Agreement.

     (e)  Related Companies and Affiliates. The Licensee has the means to
          exploit the entire market in the Grant Territory, and to arrange for
          timely payment of all fees and royalties herein defined itself or
          through existing arrangements with Related Companies or other third
          parties.

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                                       22

<PAGE>

10.02 Licensee Covenant to Assist in Approvals. The Licensee hereby covenants,
as part of the consideration of this Agreement, to engage in all reasonable
efforts to secure all approvals reasonably required by the Licensor, including
but not limited to approval to the EPA SITE program and any and all patent
approvals in each national market in which the Licensee will market the Licensed
Material.

10.03 Survival of Representations and Warranties; Covenants; Indemnities. All
representations, warranties, covenants and indemnities contained herein or made
in writing by any party in connection herewith shall survive the termination or
expiry of this Agreement indefinitely. All covenants contained herein shall
survive until performed fully. The provisions of payment of (and accounting in
respect to) the fees detailed in Article IV of this Agreement and other monies
due to the Licensor under this Agreement shall survive the termination of expiry
of this Agreement.

10.04 Severability. If any provision of this Agreement or the application of
such provision to any person or circumstances shall be held invalid, the
remainder of this Agreement, or the application of such provision to persons or
circumstances other than to those to which it was held invalid, shall not be
affected thereby, shall be severable, shall inure to the benefits of both
parties and shall be valid and enforceable in accordance with their terms.


10.05 Further Acts. The parties hereto agree, as part of the consideration to
this Agreement, to perform such further acts and execute such additional
instruments as may be necessary to carry out the full intent and purpose of this
Agreement.

10.06. Counterparts. This agreement may be executed in several counterparts,
each of which shall be deemed an original, but all of which shall constitute one
and the same instrument.

10.07 Headings. The article, section and provision headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

10.08 Application. This agreement applies to, inures to the benefit of, and
binds the parties hereto and, subject to the express assignment provisions
hereof, their respective successors and assigns.

10.09 Scope. This agreement together with the attachments annexed hereto
constitutes the entire agreement between the parties. It supercedes any prior
agreement or understandings between them as to the subject matter contemplated
herein, and it may not be modified or amended in any manner other than as set
forth herein.

10.10 Amendment and Modification. This agreement may only be amended, modified
or supplemented by written agreement of the parties.

10.11 Assignment. Licensor shall have a right to assign any and all of its
rights under this Agreement to any Affiliate or other entity owned or controlled
by Licensor provided that Licensor and the assignee shall be jointly and
severally liable to perform all of Licensor's obligations hereunder. Otherwise,
neither this Agreement nor any of the rights, interests or obligations hereunder
shall be assigned by either the parties hereto without the express prior written
consent of the other party, except the Licensor or Licensee may assign their
respective rights and obligations under this Agreement to any purchaser of all
or substantially all of their respective assets or the assets or their
respective companies.

10.12 Waiver. Any failure of the Licensor, on the one hand, or the Licensee, on
the other, to comply with any obligation herein may be expressly waived
hereunder, but such waiver shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure. Any waiver must be in writing and
duly executed by the appropriate party. The remedies set forth in this Agreement
shall be cumulative and no one shall be construed as exclusive of any other or
of any remedy provided by law. The failure of any party to exercise any remedy
at any time shall not operate as a waiver of them or the right of such party to
exercise any remedy for the same or subsequent default at any time.

10.13 Reservation of Rights. All rights not specifically and expressly granted
to the Licensee by this Agreement are reserved to the Licensor.

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<PAGE>

10.14 Third Parties. Except as specifically set forth or referred to herein,
nothing herein shall be construed to confer upon or give to any party other than
the parties hereto and, only if applicable, their successors or permitted
assigns, any rights or remedies under or by reason of this Agreement.

10.15 No Agency or Partnership. The parties are not partners or joint ventures
nor is the licensee entitled to act as the Licensor's agent, nor shall the
Licensor be liable in respect of any representation, act or omission of the
Licensee of whatever nature.

10.16 Force Majeure. The parties hereto shall not be liable for the failure of
performance hereunder if occasioned by war, declared or undeclared, fire, flood,
acts of God, interruption of transportation, embargo, accident, explosion,
inability to procure or shortage of supply of raw materials, equipment, or
production facilities, prohibition of import or export of the Licensed Materials
covered hereby, governmental orders, regulations, restrictions, priorities or
rationing, or by strike, lockout or other labor troubles interfering with the
production or transportation of such goods or with the supplies of raw materials
entering into their production of or any other cause beyond the control of the
parties. Any suspension of performance by reason of this article shall be
limited to the period during which such cause of failure exists, but such
suspension shall not affect the running of the term of this Agreement.

     (a)  Merger or Acquisition. In the event of the direct or indirect
          acquisition, or assumption of a 20% or greater controlling interest of
          the Licensee by any superior authority, the Licensor shall, at its
          option, have the right to terminate this Agreement at any time
          thereafter upon giving written notice thereof to the Licensee, and,
          upon the giving of such notice of termination, this Agreement shall
          terminate forthwith.

          (i)  Continuing Rights and Obligations. In the event of such
               termination, the Licensee and/or the relevant superior authority
               shall be entitled to income as provided for by the terms of this
               Agreement, and shall remain obligated to the Licensor for all
               royalties payable and duties owing hereunder for only those
               sites, as that term is herein defined, existing upon termination
               in the event provided for by subparagraph 10.16(a) hereof. In the
               event of any such termination, the Licensor hereby covenants to
               contract or otherwise deal with the Licensee and/or the relevant
               superior authority on a site by site basis as is reasonably
               necessary for each of these existing sites.

          (ii) Non-Exclusivity. In the event of the direct or indirect
               acquisition, or assumption of a 20% or greater controlling
               interest of the Licensee by any superior authority, the Licensor,
               at its option, and in lieu of termination, may choose to excise
               the exclusivity provisions from this Agreement and may license
               the Licensed Material to others for the exploitation of the Grant
               Territory market. If the Licensor chooses to exercise this
               option, there shall be no effect on the royalties payable and
               duties owing to the Licensor pursuant to the remaining terms of
               this Agreement.

10.17 Conflicts. In the event that any provision, term, condition, or object of
this Agreement may be in conflict with any law, measure, ruling, court judgment
(by consent or otherwise), or regulation of any governmental authority, or any
department or agency thereof, and the legal counsel of either party shall advise
that in their considered opinion such conflict, or a reasonable possibility of
such conflict exists, then either party may propose to the other appropriate
modifications of this Agreement to avoid such conflict. In such case, if an
agreement or modification is not reached within sixty (60) days, the party
making such proposal, after thirty (30) day written notice to the other party,
may terminate this agreement in its entirety, as of a date subsequent to such
thirty (30) days, and which shall be specified in said notice.

10.18 Government Approval. Any approval of this Agreement by any government
which may require the Licensee to seek its approval to enable the Licensee to
enter into this Agreement or to make payments

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<PAGE>

hereunder in United States dollars in the United States of America shall be
secured in writing by the Licensee who shall supply the same or a true copy
thereof to the Licensor within six (6) months of the date of this Agreement.

10.19 Joint and Several. All agreements on part of either of the parties which
comprises more than one person or entity shall be joint and several.

10.20 Currency. Throughout this Agreement the currency is U.S. Dollars.

10.21 Entire Agreement. This agreement sets forth the entire agreement and
understanding between the parties as to the subject matter of this Agreement and
merges all prior discussions between them, and neither of the parties shall be
bound by any conditions, definitions, warranties or representations with respect
to the subject matter of this Agreement, other than as expressly provided in
this Agreement or as duly set forth on or subsequent to the date hereof in
express writing and signed by a proper and duly authorized representative of the
party to be bound thereby. This written agreement embodies all of the
understanding and obligations between the parties with respect to the subject
matter hereof.

                                   ARTICLE XI
                                 GOVERNING LAW

11.01 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
conflicts of law principles.

                                  ARTICLE XII
                               NOTICE PROVISIONS

12.01 Notices. All notices, consents, requests, demands and other communications
required or permitted hereunder shall not be binding unless in writing and shall
be deemed to have been duly given when delivered by hand or by facsimile
transmission (transmission confirmed and hard copy mailed by first class mail)
or three (3) days after mailed, certified or registered mail with postage
prepaid;

     (a)  If to Licensor, to:

               KBF Pollution Management, Inc.
               1 KBF Plaza
               End of Jasper Street
               Paterson, New Jersey 07522
               Attn: Lawrence M. Kreisler
               Fax No.: 973-942-7700

or to such other person or address as the Licensor shall furnish to the
Licensee in writing by notice given in the manner set forth above.

     (b)  If to the Licensee, to:

               Solucorp Industries, Ltd.
               250 West Nyack Road
               West Nyack, New York 10994
               Attn: Peter Mantia
               Fax No.: 914-623-4987

or to such other person or address as the Licensee shall furnish to the
Licensor in writing by notice given in the manner set forth above.

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<PAGE>

12.02 Adequacy of Service. Notice given personally shall be deemed given at the
time of delivery. Notice sent by post in accord with this clause shall be deemed
given at the commencement of business on the second business day following its
posting. Notice sent by telefax or facsimile transmission in accord with this
clause shall be deemed given at the time of actual transmission and must be
accompanied by notice by post. Notice sent by post must either be sent certified
mail, return receipt requested, or by Federal Express or other suitable licensed
overnight carrier.

                                  ARTICLE XIII
                           DELIVERIES UPON EXECUTION

13.01 Deliveries. The following deliveries shall be made upon execution and,
unless waived by the appropriate party in writing or by consummating the
transactions contemplated hereby without them, are conditions precedent to
execution of this Agreement:

     (a)  Letters patent and applications for letters patent of the Licensor
          (Attachment A);

     (b)  All relevant agreements as and between the Licensee and any Related
          Company in the Grant Territory with whom the Licensee intends on
          working or partnering with to conduct the remediation, recovery and/or
          treatment activities contemplated herein;

     (c)  Samples, and precise quantity, flow, throughput and existing process
          data for the anticipated first site;

     (d)  All unrestricted common stock of the Licensee due upon execution; and,

     (e)  All other attachments to this Agreement as deemed reasonably necessary
          by either party.

13.02 Further Assurances. Licensor and Licensee shall each deliver, or cause to
be delivered, all other documents reasonably required to be delivered by the
other party at the execution and shall take all other actions which are
reasonably necessary or appropriate in order to consummate fully the
transactions contemplated hereby.

13.03 Compliance With Payment Schedule. Concurrently upon execution of this
Agreement, Licensee shall pay all fees owing to Licensor in accord with the
terms of Article IV.


IN WITNESS WHEREOF, Licensor and Licensee have caused this Agreement to be duly
executed in their names by their proper officers thereunto duly authorized and
their corporate seals to be hereonto affixed on the date hereinafter set forth.

KBF POLLUTION MANAGEMENT, INC.               SOLUCORP INDUSTRIES


By: /s/ LAWRENCE M. KREISLER                 By: /s/ PETER R. MANTIA
   -----------------------------------          -----------------------------
    Lawrence M. Kreisler                         Peter R. Mantia
    President, Chief Executive Officer           President

Date: March 20, 1998                         Date: March 20, 1998
      --------------                               --------------

                                                                [Corporate Seal]

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