Document:

kl04036_ex10-1.htm

    
      

    

     

    Exhibit 10.1

     

    
 

    CONFIDENTIAL TREATMENT
REQUESTED

     

    INFORMATION
FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED IS OMITTED AND IS IDENTIFIED
BY THREE ASTERISKS, AS FOLLOWS “* * *”. AN UNREDACTED VERSION OF THIS DOCUMENT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION.

     

    

    PURCHASE
AGREEMENT – PLASMA CONVERTER SYSTEM

    

    This
Purchase Agreement entered into on this 10th day of
May, 2007, for the sale and purchase of goods and services consisting of two (2)
10 Tons Per Day (rated capacity) and one (1) 5 TPD (rated capacity) integrated
Plasma Converter Systems (PCS) to process various solid, liquid and gaseous
feeds including hazardous waste and Municipal Solid Wastes. This Purchase
Agreement is made between STARTECH ENVIRONMENTAL CORPORATION, (hereinafter
“Company”) a corporation organized and existing under the laws of the State of
Colorado, U.S.A., with its principal office at 88 Danbury Road, Wilton
Connecticut and ENVIROSAFE INDUSTRIAL SERVICES CORPORATION (hereinafter,
“Customer”), a corporation organized and existing under the laws of the
Commonwealth of Puerto Rico, U.S.A., with its principal office at Corporate
Center at Roosevelt Avenue, 6th Floor
Suite #603, #1445 Roosevelt Avenue, Corner Renaissance Street,  San
Patricio Ward, San Juan, Puerto Rico.

    

    Goods and
Services

    

    
      	
              §  

            	
              Company
      will sell, two (2) 10 TPD (rated capacity) PCS and one (1) 5 TPD (rated
      capacity) Startech Environmental Corporation integrated Plasma Converter
      Systems (PCS).

            

    

    
      	
              §  

            	
              Company
      will coordinate and provide crating for the purchased goods to be shipped
      to Customer.

            

    

    
      	
              §  

            	
              The
      final installation location will be at one (1) site location selected by
      the Customer.

            

    

    
      	
              §  

            	
              Company
      shall furnish Startech parts and accessories required for the integration
      of the Plasma Converter Systems equipment, instrumentation and skids
      specified in Exhibit D.

            

    

    
      	
              §  

            	
              Equipment
      for the use and disposal of the Plasma Converted Gas (PCG) has not been
      included in this sales agreement.

            

    

    
      	
              §  

            	
              The
      Company will provide on-site startup and systemization training services
      at Customers site location to coordinate the PCS installation after the
      Plasma Converter Systems arrive on site. The scope of this service
      includes up to *** of a Company engineer/technician at Customer’s location
      in Puerto Rico, travel and living expenses
  included.

            

    

    
      	
              §  

            	
              The
      Company will provide the Customer’s operators training and operator
      certification.

            

    

    
      	
              §  

            	
              The
      Company will provide a *** Product Warranty as described in Exhibit
      A.

            

    

    
      	
              §  

            	
              The
      Company will provide a Performance Warranty that will be effective during
      systems startup and commissioning.

            

    

    
      	
              §  

            	
              The
      Company will provide a comprehensive spare parts
  kit.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Shipment, Delivery and
Startup

    

    
      	
              §  

            	
              The
      one (1) 5 TPD (rated capacity) PCS System shall be targeted for shipment
      from the Company’s Bristol, CT plant on or about *** from the date of this
      Purchase Agreement and payment of the initial down payment specified in
      Exhibit C. The two (2) 10 TPD (rated capacity) PCS Systems will be
      targeted for shipment in *** and ***
  respectively.

            

    

    
      	
              §  

            	
              Company
      shall be responsible for the proper packaging and crating of the
      Goods/Equipment, which shall be done at Company’s
  expense.

            

    

    
      	
              §  

            	
              Shipping
      from the Company’s Bristol, CT plant to the Customer’s designated facility
      in Puerto Rico will be coordinated by the Company. The cost of this
      shipping service will be billed directly to the Customer by the shipping
      company selected by the Company. Notwithstanding Customer’s assumption of
      the shipping costs, the delivery of the Goods/Equipment shall not be
      considered made until they reach the Customer’s designated facility in
      Puerto Rico and Company shall bear all risk of loss or damage to the
      Goods/Equipment until such time as they are delivered at the Customer’s
      designated facility in Puerto Rico.

            

    

    
      	
              §  

            	
              Customer
      shall receive, provide support to Company to unload, and store each
      shipment of components of the Systems, as may be required, at the Customer
      Premises. However, Customer shall not uncrate or unpack such components
      without prior permission and/or supervision from
  Company.

            

    

    
      	
              §  

            	
              Upon
      final delivery of the systems to the designated site, it will take
      approximately *** for systems installation, training and startup with
      Company coordination and support.

            

    

    

    Training and
Documentation

    

    
      	
              §  

            	
              Company
      shall provide Customer with *** of training course materials and operating
      documentation materials for each of the Plasma Converter Systems. The
      training consists of the following
items:

            

    

    

    
      	
              1)  

            	
              System
      Installation Manual and Operating and Maintenance
  Manuals.

            

    

    
      	
              2)  

            	
              Training
      for operating and maintenance personnel for up to *** operators for the
      PCS, with the option to add additional trainees under separate terms and
      conditions to be negotiated by the Company and the
    Customer.

            

    

    
      	
              3)  

            	
              The
      specific training to be conducted by the Company includes the following
      major areas:

            

    

    

    
      	
              ·  

            	
              PCS
      Operations and maintenance

            

    

    
      	
              ·  

            	
              Troubleshooting
      (What if Analysis)

            

    

    
      	
              ·  

            	
              Control
      System Procedures (System Start-up, Processing & Shutdown
      Protocols)

            

    

    

    
      	
              §  

            	
              One
      (1) week of equipment familiarization orientation and training will be
      conducted at the Company facility in Bristol, CT for the Customer
      personnel indicated above.

            

    

     

    
      	
              §  

            	
              All
      travel and living expenses for the Customer’s personnel during training
      are the responsibility of the
Customer.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    General Representations and
Warranties

    

    
      	
              §  

            	
              Company
      hereby warrants to Customer that:

            

    

    

    
      	
               
      

            	
              (1)

            	
              it
      has full power and authority to enter into this Agreement and perform its
      obligations hereunder; and

            

    

    

    
      	
               
      

            	
              (2)

            	
              it
      has good and marketable title to Goods and Services or Equipment to be
      delivered to Customer;

            

    

    

    
      	
               
      

            	
              (3)

            	
              the
      Goods and Services or Equipment to be provided hereunder do not infringe
      any patent, copyright, trademark, trade dress or other intellectual
      property right of any third party; and (ii) there is no pending
      litigation, claim, opposition, reissue or reexamination proceeding
      involving a patent or pending patent application or other intellectual
      property similar thereto which could serve as the basis for any claim,
      that would prevent or be likely to prevent Company from performing its
      obligations hereunder or prevent Customer from using manufacturing,
      selling or distributing the Good and Service or Equipment. Company will
      promptly notify Customer of any such claim or any infringement claim or
      any basis for such a claim, or of any such proceeding of which Company
      becomes aware after effective date of this Agreement and throughout the
      Term of this Agreement and/or the Term of any Distribution Agreement that
      Customer may have with Company; and

            

    

    

    
      	
               
      

            	
              (4)

            	
              neither
      this Agreement nor compliance with the Agreement’s terms and conditions
      will (i) violate any United States or foreign law, statute, rule or
      regulation, or any order of any court or governmental instrumentality,
      (ii) conflict with, result in any breach of, constitute a default under,
      or result in any lien upon any of its property or assets pursuant to the
      terms of any indenture, mortgage, deed of trust, license, franchise,
      permit, agreement, patent or other instrument to which it is a party or to
      which any of its property or assets is subject, or (iii) violate the
      parties’ Certificate of Incorporation or
  By-Laws.

            

    

    

    
      	
              §  

            	
              Customer
      hereby warrants to Company that:

            

    

    

    
      	
              (1)  

            	
              it
      has full power and authority to enter into this Agreement and perform its
      obligations hereunder; and

            

    

    
      	
              (2)  

            	
              neither
      this Agreement nor compliance with the Agreement’s terms and conditions
      will (i) violate any United States or foreign law, statute, rule or
      regulation, or any order of any court or governmental instrumentality,
      (ii) conflict with, result in any breach of, constitute a default under,
      or result in any lien upon any of its property or assets pursuant to the
      terms of any indenture, mortgage, deed of trust, license, franchise,
      permit, agreement, patent or other instrument to which it is a party or to
      which any of its property or assets is subject, or (iii) violate the
      parties’ Certificate of Incorporation or
  By-Laws.

            

    

    
      	
              (3)  

            	
              Customer
      shall not reverse-engineer, fabricate, or cause to be fabricated a PCS
      unit or equipment substantially equivalent
  thereto.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Customer
Requirements

     

    
      	
              §  

            	
              Provide
      a Customer Facility (building) for installation of the Plasma Converter
      System with all the required utility hookups at the Plasma Converter
      System skid locations (i.e. appropriate electrical power, water
      etc.).

            

    

    
      	
              §  

            	
              The
      Company will provide technical supervision for the installation and
      commissioning of the Plasma Converter System (PCS) equipment installation.
      The Customer shall provide on-site contractor and craft labor and
      construction equipment in support of Startech field personnel during
      installation.

            

    

    
      	
              §  

            	
              Grant
      to Company Personnel access to the Customer Premises, including the
      System, Customer Facilities, and Customer Equipment, as may be necessary
      or appropriate for Company to perform its responsibilities under this
      Agreement.

            

    

    
      	
              §  

            	
              Customer
      will provide all language translation for all documentation, if
      necessary.

            

    

    
      	
              §  

            	
              Customer
      will be responsible for all necessary permits to operate the PCS in the
      designated facility as intended, providing that Company will supply
      Customer all the information that is deemed necessary to obtain such
      permits.

            

    

    

    Price and Terms of Goods and
Services

    

    
      	
              §  

            	
              In
      consideration of Company's obligations as recited herein, the Customer
      shall pay the Total Price of NINETEEN MILLION TWO HUNDRED SEVENTY FIVE
      THOUSAND DOLLARS ($19,275,000 USD) for the two (2) 10 TPD (rated capacity)
      and one (1) 5 TPD (rated capacity) integrated Plasma Converter Systems
      specified in Exhibit D. The required payment milestone schedule is
      included in Exhibit C. This Total Price shall not be subject to any
      adjustments, except for incremental cost limited to those mentioned in
      Exhibit D, changes in design or scope requested and approved by the
      Customer the shipping costs to be paid by the Customer and the performance
      insurance cost to be paid ***, which costs will be quoted at a later
      time.  The insurance cost which shall be paid by the Customer
      and the Company and the agreement for such payment are stipulated in a
      more comprehensive manner in a Letter Agreement executed on this same date
      by and between the Company and the Customer.  The Company and
      the Customer agree to execute an amendment to this agreement, once the
      final costs are determined, so that this Purchase Agreement will clearly
      state the actual Total Price paid by the
  Customer.

            

    

    

    
      	
              §  

            	
              In
      addition to the Total Price, Customer shall duly report and pay all
      international, federal, state, local, and other taxes, value added tax
      (VAT), customs duties or other charges (other than income or franchise
      taxes payable by Company) directly applicable to the sale, installation,
      maintenance, or use of the System.

            

    

    

    
      	
              §  

            	
              Where
      in any payment made by Customer to the Company pursuant to this agreement,
      the value of unfixed materials and or goods has been included and
      materials and or goods have been intended for the manufacture of the
      integrated PCS and placed on or adjacent to the Company’s manufacturing
      facility, the materials and or goods shall remain the property and
      ownership of the Company. The Company shall be responsible for any loss or
      damage, and the materials or goods shall not be removed, except for the
      use in the manufacture of the
equipment.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              §  

            	
              Customer
      grants Company, and Company reserves, a purchase-money security interest,
      as that term is defined pursuant to Articles One and Nine of the Uniform
      Commercial Code, to the extent of all obligations of Customer to Company
      under this Agreement, in all components of the System procured, installed
      and/or delivered hereunder and in any proceeds that may arise in
      connection with the sale or conversion thereof. Customer shall cooperate
      with Company in filing financing statements covering such security
      interest and authorizes Company to execute and file financing statements
      without Customer's signature in any jurisdiction where such procedure is
      authorized.

            

    

    

    
      	
              §  

            	
              All
      amounts, other than the down payment, not paid by Customer within thirty
      (30) days after such amounts become due and payable to Company shall bear
      interest at the lesser of two percent (2%) per month or the maximum rate
      of interest allowed by applicable
law.

            

    

    

    Other Terms and
Conditions

    

    Indemnification
and Infringement

    

    
      	
              §  

            	
              Company
      agrees to indemnify and hold Customer harmless from and against any and
      all losses, liabilities, damages, actions or claims (including, without
      limitation, amounts paid in settlement and reasonable costs of
      investigation and reasonable attorneys’ fees and disbursements)
      (collectively “Claims”), arising from (i) a breach of representations and
      warranties made in this Agreement; (ii) a breach or non compliance by the
      Company of its obligations under this Agreement; (iii) bodily injury and
      property damage arising out of or resulting from the failure of the Goods
      and Service or Equipment to meet the Specifications or due to Company’s
      failure to comply with its obligations under this Agreement; (iv) loss,
      injury or damage incurred by third parties or by Customer’s personnel or
      damage to such persons’ property attributable to equipment malfunction due
      to manufacturing defects; and (v) any claim that the Goods and Service or
      Equipment, or the use or sale of Goods and Service or Equipment, infringes
      any patents or other proprietary rights of a third party, including
      without limitation, trade secrets, trademarks and
    copyrights.

            

    

    

    
      	
              §  

            	
              It
      is understood that the Company shall not be obligated to indemnify
      Customer for Claims arising from the Customer’s negligent acts, omissions
      or wrongful conduct in connection with the operation of the
      PCS.

            

    

    

    
      	
              §  

            	
              Customer
      agrees to indemnify and hold Company harmless from and against any and all
      losses, liabilities, damages, actions or claims (including, without
      limitation, amounts paid in settlement and reasonable costs of
      investigation and reasonable attorneys’ fees and disbursements)
      (collectively “Claims”), arising from (i) a breach of representations and
      warranties made in this Agreement; (ii) a breach or non compliance by the
      Customer of its obligations under this Agreement; (iii) bodily injury and
      property damage arising out of or resulting from the misuse of the Goods
      and Service or Equipment or due to Customer’s failure to comply with its
      obligations under this Agreement; (iv) loss, injury or damage incurred by
      third parties or by Customer’s personnel or damage to such persons’
      property attributable to the Customer’s negligent acts, omissions or
      wrongful conduct in connection with the operation of the
    PCS.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              §  

            	
              The
      parties hereto agree and acknowledge that the indemnification obligations
      provided hereunder are different and separate from the Company’s
      obligations under the Product Warranty and the Performance Warranty
      provisions. The Indemnification obligations stated herein shall extend for
      a period of three (3) years from the Completion
  Date.

            

    

    

    Confidentiality

    

    
      	
              §  

            	
              Customer
      and Company agree that each will not disclose to any third party (other
      than their respective attorneys or other persons related to either which
      need to know such information), or utilize for its own benefit or that of
      any third party, information regarding the terms of this Agreement and/or
      any other agreements or contracts between the parties, unless the other
      party shall provide its written consent to such
  disclosure.

            

    

    

    Warranties

    

    
      	
              §  

            	
              Company
      provides a *** Product Warranty for each integrated Plasma Converter
      System (PCS) which warranty period shall commence on the Completion Date.
      The specific warranty provisions are included as Exhibits A and B of this
      contract.

            

    

    

    
      	
              §  

            	
              Company
      provides a Performance Warranty that will be effective during system
      startup and commissioning. The Performance Warranty will be that the
      Company shall warrant and guaranty the proper and complete performance of
      the Goods and Services/Equipment and Systems to be provided under this
      Contract, which in turn will be verified by the Customer and the Company
      by conducting a series of performance tests (the “Performance Tests”),
      which tests shall be defined and agreed upon by both the Customer and the
      Company upon final completion of the design of the System. The parties
      hereto agree and acknowledge that the feed materials which will be used as
      a design basis for the Performance Tests shall be Municipal Solid Wastes
      and a material, to be specified and agreed between Customer and Company,
      consisting of Pharmaceutical Manufacturing hazardous waste. The
      Performance Tests shall be conducted at the time of start-up and
      commissioning of the Equipment and the date of satisfactory completion of
      the Performance Tests shall be defined as the “Completion Date”. In the
      event that the system or any component thereof fails to meet the
      Performance Tests which form part of the Performance Warranty then the
      Company shall have the obligation to work diligently and without
      interruption in order to make the necessary repairs and/or adjustments
      necessary to satisfy the Performance Tests and thereby comply with the
      Performance Warranty. In the event that the Company fails to get the
      Equipment and System operating properly (to meet the Performance Tests)
      within a period of *** from the date of installation, then the Customer
      shall have the sole discretion to either give the Company additional time
      to try to work to achieve compliance with the Performance Tests, or seek
      any and all remedies available at
law.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Performance
Insurance

     

    
      	
              §  

            	
              In
      addition to the warranties and liability provisions provided within this
      Purchase Agreement and Exhibit A, Company will obtain, with the active
      assistance and involvement of Customer, insurance coverage on the Startech
      system satisfactory to Customer and Company, where the cost for such
      insurance will be paid *** and the portion paid by the Customer shall be
      considered as addition to the cost of the purchased equipment. The details
      for the transaction involving this insurance are stipulated in a more
      comprehensive manner in a Letter Agreement executed on this same date by
      and between the Company and the
Customer.

            

    

    

    Force
Majeure

    

    
      	
              §  

            	
              Neither
      party shall be liable for any costs or damages attributable to
      nonperformance (including delays on the part of Company in making
      deliveries hereunder) arising out of any "Event of Force Majeure," which
      shall consist of any cause not within its reasonable control and not due
      to its fault or negligence.

            

    

    

    
      	
              §  

            	
              Each
      party shall give the other party prompt notice of the occurrence of any
      Event of Force Majeure that is expected to cause delay hereunder, and the
      date of performance by any such party shall be extended for a period not
      exceeding the period of delay caused by the Event of Force Majeure
      identified in such notice.

            

    

    

    Dispute
Resolution

    

    
      	
              §  

            	
              Applicable
      Law and Jurisdiction.  This Sales Agreement shall be
      governed by and be construed in accordance with the laws of the State of
      Connecticut.  The Company and the Customer agree and stipulate
      that the Courts of the Judicial District of Hartford, Connecticut, at
      Hartford, shall have jurisdiction and venue for purposes of all legal
      proceedings arising out of or relating to this Sales Agreement, the other
      agreements, and the transactions contemplated hereby. The parties hereto
      may serve notice to each other by registered or certified mail, return
      receipt requested, addressed to the respective party at the address
      stipulated in the Notice provision included
  herein.

            

    

    

    
      	
              §  

            	
              No
      Strict Construction.  The parties have hereto
      participated jointly in the negotiation and drafting of this Sales
      Agreement.  In the event an ambiguity or questions of intent or
      interpretation arises under any provision of this Sales Agreement, it
      shall be construed as if drafted jointly by the parties thereto, and no
      presumption or burden of proof shall arise favoring or disfavoring any
      party by virtue of the authorship of any of the provisions of this Sales
      Agreement.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    Miscellaneous

    

    
      	
              §  

            	
              Approval.  Except
      as expressly required by this Agreement the parties agree that no order,
      consent, approval, license, authorization, or validation of, or filing,
      recording or registration with, or exemption by, any governmental or
      public body or authority, or any subdivision thereof, or any other person
      or entity, is required to authorize, or is required in connection with (i)
      the execution, delivery and performance by it of this Agreement or (ii)
      the legality, validity, binding effect or enforceability against it of
      this Agreement.

            

    

    

    
      	
              §  

            	
              Entire
      Agreement. Except for any Maintenance and Service Agreement that
      may be entered into by the parties, this Agreement constitutes the entire
      agreement between Company and Customer with respect to Company’s Goods and
      Services to be supplied to the Customer in this Purchase
      Agreement.

            

    

    

    
      	
              §  

            	
              Counterparts and
      Headlines.  This Agreement may be executed in one or more
      counterparts, each of which shall be deemed an original, but all of which
      together will constitute one and the same agreement.  The
      headings of sections and paragraphs of this Agreement have been inserted
      for convenience only, and do not constitute or modify any of the terms or
      provisions hereof.

            

    

    

    
      	
              §  

            	
              Amendments.  This
      Agreement may be amended or modified only by a written instrument executed
      by each party hereto expressly stating that it is an amendment to the
      terms of this Agreement.  Without limiting the generality of the
      foregoing, all sales and purchases of Good and Service or Equipment
      contemplated by this Agreement shall be made solely pursuant to the terms
      of this Agreement.

            

    

    

    
      	
              §  

            	
              Severability.  If
      any provision or covenant of this Agreement shall contravene or be
      illegal, invalid or unenforceable under the laws of any State, County or
      jurisdiction in which this Agreement shall be performed or enforced, then
      such contravention illegality, invalidity or unenforceability shall not
      invalidate the entire Agreement.  Such provision shall be deemed
      to be modified to the extent necessary to render it valid, legal and
      enforceable, and if no such modification shall render it valid, legal and
      enforceable, then the Agreement shall be construed as if not containing
      the provision held to be invalid, and the validity, legality and
      enforceability of the provisions or covenants of this Agreement shall be
      unaffected, and the rights and obligations of the parties shall be
      construed and enforced accordingly.

            

    

    

    
      	
              §  

            	
              Assignment.  This
      Agreement shall be binding upon the successors and assignees of both
      parties; provided, however, that no assignment shall be made by either
      party without the prior consent of the other. Any attempt by either party
      to assign this Agreement or any of the rights or duties hereunder contrary
      to the foregoing provision shall be
void.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              §  

            	
              Compliance with
      Laws.  In the performance of this Agreement, Company
      shall comply with all applicable federal or national, state or regional
      and local or municipal laws, regulations, ordinances, permits and orders,
      including, without limitation, all environmental, health, safety, child
      welfare, wage & hour, label and other workplace laws and regulation.
      Company shall obtain all necessary permits and approvals and give all
      stipulations, certifications and representations that may be required for
      performance of the Agreement.

            

    

    

    
      	
              §  

            	
              Notices.  All
      notices, demands, requests, or other communications that may be or are
      required to be given, served or sent by any party to any other party
      pursuant to this Agreement shall be in writing and shall be mailed by
      certified mail, return receipt requested, or by verifiable overnight
      delivery postage prepaid, addressed at the address set forth beneath each
      of the respective names of the parties hereto on the execution page of
      this Agreement.

            

    

    

    All
notices to Company shall be directed to the following address:

    

    
      	
              §  

            	
              88
      Danbury Road

            

    

    Wilton,
CT 06897

    

    All
notices to Customer shall be directed to all the following
addresses:

    

    
      	
              §  

            	
              Corporate
      Center @ Roosevelt Avenue

            

    

    6th Floor
Suite #603

    #1445
Roosevelt Avenue, Corner Renaissance Street

    San
Patricio Ward

    San Juan,
Puerto Rico 00920

    

    
      	
              §  

            	
              PO
      BOX 11852

            

    

    SAN JUAN
PR 00922-1852

    

    
      	
              §  

            	
              243
      Road #2

            

    

    Guaynabo,
PR 00908-1852

    

    Each
party may designate by notice in writing a new address to which any
communication may thereafter be so given, served or sent. Each notice or
communication that is mailed or delivered in the manner described above shall be
deemed given at such time as it is delivered to the addressee (with the return
receipt or the delivery receipt being deemed exclusive evidence of such
delivery) or at such time as delivery is refused by the addressee upon
presentation.

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in
duplicate by their duly authorized corporate officers as of the day and year
first above written.

    

    ACCEPTED
BY;

     

    PURCHASER
(Customer):

     

    EnviroSafe
Industrial Services Corporation

     

    

     

    By:
__________________________                                                                               Date:
________________________

    

    Federico
Padron Garay, P.E.

    President

    EnviroSafe
Industrial Services Corporation

    

     

    SELLER:

     

    Startech
Environmental Corporation

     

    

     

    BY:
___________________________                                                                                DATE:
________________________

     

    Joseph F. Longo

    President & CEOexhibit_10-1.htm

    Exhibit
10.1

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    This
Executive Employment Agreement (“Agreement”)
is made effective as of April 14, 2008, (the “Effective
Date”) by and between SCOLR Pharma, Inc. (“Company”)
and Richard M. Levy (“Executive”).

     

    The
parties agree as follows:

     

    1.           Employment.  Company
hereby employs Executive, and Executive hereby accepts such employment, upon the
terms and conditions set forth herein.

     

    2.           Duties.

     

    2.1           Position.  Executive
is employed as Vice President of Finance and Chief Financial Officer and shall
have the duties and responsibilities assigned by Company’s Chief Executive
Officer, both upon the Effective Date and as may reasonably be assigned from
time to time.  Executive shall perform faithfully and diligently all
duties assigned to Executive.  Company reserves the right to modify
Executive’s position and duties at any time in its sole and absolute discretion,
provided that the duties assigned are consistent with the position of a senior
executive and that Executive continues to report to the Chief Executive
Officer.

     

    2.2           Best
Efforts/Full-time.  Executive will expend Executive’s best
efforts on behalf of Company, and will abide by all policies and decisions made
by Company, as well as all applicable federal, state and local laws, regulations
or ordinances.  Executive will act in the best interest of Company at
all times.  Executive shall devote Executive’s full business time and
efforts to the performance of Executive’s assigned duties for
Company.

     

    2.3            Work
Location.  Executive’s principal place of work shall be in
Bellevue, Washington, or such other location as the parties may agree upon from
time to time.

     

    3.           At-Will
Employment Relationship.  Executive’s employment with Company
is at-will and not for any specified period and may be terminated, with or
without cause, by either Executive or Company, except as otherwise specified in
Section 7 below.  No
representative of Company, other than an authorized representative, has the
authority to alter the at-will employment relationship.  Any change to
the at-will employment relationship must be by specific, written agreement
signed by Executive and a designated representative of
Company.  Nothing in this Agreement is intended to or should be
construed to contradict, modify or alter this at-will
relationship.

     

    4.           Compensation.

     

    4.1           Base
Salary.  As compensation for Executive’s performance of
Executive’s duties hereunder, Company shall pay to Executive as an initial base
salary of Two Hundred Twenty-six Thousand Eight Hundred Dollars ($226,800) per
year (the “Base
Salary”), payable in accordance with the normal payroll practices of
Company, less required deductions for state and federal withholding tax, social
security and all other employment taxes and payroll deductions.  In
the event Executive’s employment under this Agreement is terminated by either
party, for any reason, Executive will be paid the Base Salary, prorated to the
date of termination.

     

    4.2           Incentive
Compensation.  Executive will be eligible to receive annual
corporate performance bonuses in accordance with Company’s management incentive
plan, should Company adopt one, or else in accordance with the terms of this
Agreement.  Executive shall be eligible to receive an 

     

    
      
        
          
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    annual
discretionary bonus of up to thirty-five percent (35%) of Executive’s Base
Salary based on the achievement of targeted corporate and individual
performance goals and objectives agreed on by Executive and
Company.

     

    4.3           Performance
and Salary Review.  Company will periodically review
Executive’s performance on no less than an annual basis.  Adjustments
to Executive’s salary or other compensation, if any, will be made by Company in
its sole and absolute discretion.

     

    5.           Benefits.  Executive
will be eligible for all customary benefits generally available to executive
employees of Company, subject to the terms and conditions of Company’s
applicable benefit plan documents and policies.  Company reserves the
right to change or eliminate the benefits on a prospective basis, at any time,
effective upon notice to Executive.

     

    6.           Business
Expenses.  Executive will be reimbursed for all reasonable,
out-of-pocket business expenses incurred in the performance of Executive’s
duties on behalf of Company.  To obtain reimbursement, expenses must
be submitted promptly, with appropriate supporting documentation, in accordance
with Company’s policies.

     

    7.           Termination
of Executive’s Employment.

     

    7.1           Voluntary
Termination by Executive.  Executive may voluntarily terminate
Executive’s employment at any time on thirty (30) days’ advance written notice
to Company, provided that Company may, in its sole discretion, elect to waive
all or any part of such notice period.  In the event of Executive’s
employment is terminated in accordance with this Section 7.1, Executive shall be
entitled to receive only the Base Salary then in effect, prorated to the date of
termination, and any amounts earned and payable pursuant to Sections 5 and 6,
including any accrued but unused vacation (collectively, the “Standard
Entitlements”), and no other amounts.  For purposes of this
Section 7.1, “Base
Salary” means the salary, excluding any bonus or any other additional
compensation or benefits, payable to Executive for the services rendered to
Company at the time of termination.  All other Company obligations to
Executive pursuant to this Agreement will become automatically terminated and
completely extinguished and Executive will not be entitled to receive the
Severance Package described in Section 7.3.

     

    7.2           Termination
for Cause by Company.  Company may terminate Executive’s
employment immediately at any time for Cause (as defined below).  In
the event that Executive’s employment is terminated for Cause, Executive shall
be entitled to receive only the Standard Entitlements, and no other
amounts.  For purposes of this Section 7.2, “Base
Salary” means the salary, excluding any bonus or any other additional
compensation or benefits, payable to Executive for the services rendered to
Company at the time of termination.  All other Company obligations to
Executive pursuant to this Agreement will become automatically terminated and
completely extinguished and Executive will not be entitled to receive the
Severance Package described in Section 7.3.

     

    For
purposes of this Agreement, “Cause”
is defined as: (a) Executive’s conviction (or plea of guilty or nolo
contendere) of fraud, embezzlement, misappropriation, or any felony or any other
act of moral turpitude; (b) acts or omissions constituting gross
negligence, recklessness or willful misconduct on the part of the Executive with
respect to Executive’s obligations to Company or otherwise relating to the
business of Company; (c) Executive’s failure or inability to perform the
essential functions of the position, with or without reasonable accommodation,
due to a mental or physical disability; (d) Executive’s willful neglect of
duties as determined in the sole and exclusive discretion of Company;
(e) Executive’s death; (f) Executive’s material breach of this
Agreement, Company’s Code of Conduct or Company’s Proprietary Information and
Invention Agreement; or (g) any similar or related act or failure to act
which is materially adversely injurious to Company.

     

    
      
        
          
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7.3           Termination
Without Cause by Company.  Company may terminate Executive’s
employment without Cause at any time on thirty (30) days’ advance written notice
to Executive, provided that Company may, in its sole discretion, elect to waive
all or any part of such notice period.  In the event of such
termination, and contingent on the satisfaction of the conditions outlined in
Section 7.6 below (the “Severance
Conditions”), Executive will be paid the Standard Entitlements and the
Severance Package (defined below).  Executive will be paid the
Standard Entitlements for the duration of the required notice period, even if
Company elects to relieve Executive of Executive’s duties at an earlier
time.  All other Company obligations to Executive pursuant to this
Agreement will be automatically terminated and completely
extinguished.

     

    For
purposes of this Agreement, the “Severance
Package” shall include the following:

     

    (a) a
severance payment equal to (i) 87.5% of Executive’s annual Base Salary in effect
on the date of termination, plus (ii) thirty-five percent (35%) of Executive’s
annual Base Salary in effect on the date of termination, less required
deductions, payable in lump sum on the first Company payday following the
satisfaction of the Severance Conditions;

     

    (b)
payment of the premiums required to continue Executive’s group health care
coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1986
(“COBRA”)
for a period of twelve (12) months following the date of termination, provided
Executive elects to continue and remains eligible for such benefits and does not
become eligible for health coverage through another employer during this period;
and

     

    (c) 100%
acceleration of vesting, as of the termination date, of all of the then-unvested
equity awards under any employee benefit plan of Company held by Executive at
the time of such termination or resignation for Good Reason (as defined
below).

     

    7.4           Voluntary
Resignation by Executive for Good Reason Following a Change in
Control.  In the event that in connection with or within twelve
(12) months following a Change of Control (as defined below) Executive resigns
for Good Reason (as defined below), following thirty (30) days’ advance written
notice to Company, provided that Company may, in its sole discretion, elect to
waive all or any part of such notice period, Executive will be entitled to
receive the Standard Entitlements and the Severance Package, contingent on the
satisfaction of the Severance Conditions.  As long as Executive
provides the required notice, Executive will be paid the Standard Entitlements
for the duration of the required notice period, even if Company elects to
relieve Executive of Executive’s duties at an earlier time.  All other
Company obligations to Executive pursuant to this Agreement will become
automatically terminated and completely extinguished.

     

    Executive
will be deemed to have resigned for “Good
Reason” if Executive resigns within ninety (90) days after any of the
following have occurred, without Executive’s written consent: (a) Company
reduces the level of Executive’s responsibilities or changes Executive’s duties
so that Executive’s duties are no longer consistent with the position of a
senior executive; (b) Company reduces Executive’s Base Salary by more than
ten percent (10%), unless such reduction is made as part of, and is generally
consistent with, a general reduction of senior executives’ compensation;
(c) Company relocates Executive’s principal place of work to a location
more than fifty (50) miles from the location specified in Section 2.3; or (d)
Company fails to assign the terms of this Agreement to any successors
contemplated in Section 16.1.  Notwithstanding the foregoing,
Executive’s resignation as a result of any of the foregoing conditions shall be
considered a Voluntary Termination by Executive (as described in Section 7.1)
unless Executive shall have provided written notification to Company of the
condition(s) allegedly constituting Good Reason and Company shall have failed to
correct such condition(s) within ten (10) days after Company’s receipt of such
notice.

     

    
      
        
          
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7.5           Change In
Control.

     

    (a)           280G/Limitation
of Payments and Benefits.    If, due to the benefits
provided under Sections 7.5 or 7.4, as
applicable, Executive is subject to any excise tax due to characterization of
any amounts payable under such sections as excess parachute payments pursuant to
Section 4999 of the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder (collectively, the “Code”),
the amounts payable under such sections will be reduced (to the least extent
possible) in order to avoid any “excess parachute payment” under
section 280G(b)(1) of the Code.

     

    (b)           A
“Change of
Control” is defined as any one of the following occurrences:

     

    (i)           any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934 (the “Exchange
Act”)), other than a trustee or other fiduciary holding securities of
Company under an employee benefit plan of Company, becomes the “beneficial
owner” (as defined in Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, of the securities of Company representing more than 50%
of (A) the outstanding shares of common stock of Company or (B) the combined
voting power of the Company’s then-outstanding securities;

     

    (ii)           the
sale or disposition of all or substantially all of Company’s assets (or any
transaction having similar effect is consummated);

     

    (iii)           Company
is party to a merger or consolidation that results in the holders of voting
securities of Company outstanding immediately prior thereto failing to continue
to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the combined voting power
of the voting securities of Company or such surviving entity outstanding
immediately after such merger or consolidation; or

     

    (iv)           the
dissolution or liquidation of Company.

     

    7.6           Conditions
to Receive and Payment of Severance Package.  The Severance
Package pursuant to Sections 7.3 and 7.4, as applicable, will be paid provided
Executive satisfies all of the following conditions (the “Severance
Conditions”):

     

    (a)           Executive
complies with all surviving provisions of this Agreement as specified in Section
11.9; and

     

    (b)           Executive
executes, at the time of Executive’s termination of employment and within the
same taxable year, or, if later, before the expiration of any applicable
statutory revocation period, a full general release, releasing all claims, known
or unknown, Executive may have against Company arising out of or any way related
to Executive’s employment or termination of employment with
Company.

     

    7.7           Section
409A Compliance.  The parties intend for this Agreement either
to satisfy the requirements of Section 409A or to be exempt from the application
of Section 409A, and this Agreement shall be construed and interpreted
accordingly.  If this Agreement either fails to satisfy the
requirements of Section 409A or is not exempt from the application of Section
409A, then the parties hereby agree to amend or to clarify this Agreement in a
timely manner so that this Agreement either satisfies the requirements of
Section 409A or is exempt from the application of Section 409A.

     

    
      
        
          
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(a)           Notwithstanding
any provision in this Agreement to the contrary, in the event Executive is a
“specified employee” as defined in Section 409A, any Severance Payment,
severance benefits or other amounts payable under this Agreement that would be
subject to the special rule regarding payments to “specified employees” under
Section 409A(a)(2)(B) of the Code shall be delayed by six months such that
the first payment is made no earlier that the first date of the seventh month
following the date of Executive’s termination of employment (or the date of
Executive’s death, if earlier).

     

    (b)           To
ensure satisfaction of the requirements of Section 409A(b)(3) of the Code,
assets shall not be set aside, reserved in a trust or other arrangement, or
otherwise restricted for purposes of the payment of amounts payable under this
Agreement.

     

    (c)           Company
hereby informs Executive that the federal, state, local and/or foreign tax
consequences (including without limitation those tax consequences implicated by
Section 409A) of this Agreement are complex and subject to
change.  Executive hereby acknowledges that Company has advised
Executive that Executive should consult with Executive’s own personal tax or
financial advisor in connection with this Agreement and its tax
consequences.  Executive understands and agrees that Company has no
obligation and no responsibility to provide Executive with any tax or other
legal advice in connection with this Agreement.  Executive agrees that
Executive shall bear sole and exclusive responsibility for any and all adverse
federal, state, local and/or foreign tax consequences (including without
limitation those tax consequences implicated by Section 409A) of this
Agreement, and fully indemnifies and holds Company harmless
therefor.

     

    7.8           Taxes and
Withholdings.  Company may withhold from any amounts payable
under this Agreement, including any benefits or severance pay, such federal,
state, local or international taxes as may be required to be withheld pursuant
to applicable law or regulations.

     

    8.           No Conflict
of Interest.  During Executive’s employment with Company,
Executive must not engage in any work, paid or unpaid, that creates a conflict
of interest with Company.  Such work shall include, but is not limited
to, directly or indirectly competing with Company in any way, or acting as an
officer, director, employee, consultant, stockholder, volunteer, lender, or
agent of any business enterprise of the same nature as, or which is in direct
competition with, the business in which Company is now engaged or in which
Company becomes engaged during Executive’s employment with Company, as may be
determined by Company in its sole discretion.  If Company believes
such a conflict exists during Executive’s employment with Company, Company may
take corrective action, which may include asking Executive to choose either to
discontinue the other work or voluntarily resign from employment with
Company.  

     

    9.           No
Violation of Rights of Third Parties.  Executive represents
that Executive’s performance of this Agreement does not and will not breach any
agreement to keep in confidence proprietary information, knowledge or data
acquired by Executive prior to Executive’s employment with
Company.  Executive agrees not to disclose to Company, or induce
Company to use, any confidential or proprietary information or material
belonging to any previous employers or others.  Executive warrants
that Executive is not a party to any other agreement that will interfere with
his full compliance with this Agreement.  Executive further agrees not
to enter into any agreement, whether written or oral, in conflict with the
provisions of this Agreement while such provisions remain
effective.

     

    10.           Confidentiality
and Proprietary Rights.  Executive represents that Executive
has executed and agrees to abide by Company’s Employee Proprietary Information
and Invention Agreement, which is incorporated herein by reference.

     

    
      
        
          
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11.           Post-Termination
Non-Competition.

     

    11.1           Consideration
For Promise To Refrain From Competing.  Executive agrees that
Executive’s services are special and unique, that Company’s disclosure of
confidential, proprietary information and specialized training and knowledge to
Executive, and that Executive’s compensation and benefits and severance, as
applicable, are partly in consideration of and conditioned upon Executive not
competing with Company.  Executive acknowledges that such
consideration for Executive’s services under this Agreement is adequate
consideration for Executive’s promises contained within this
Section 11.

     

    11.2           Promise To
Refrain From Competing.  In exchange for the consideration
described in Section 11.1, Executive agrees that for the period of one (1) year
following the date Executive ceases to render services to Company, Executive
will not, in any capacity, either directly or indirectly, whether as a owner,
director, officer, manager, consultant, agent or employee: (i) be employed in
any enterprise which
is engaged
in the business of developing, licensing, or selling technology, products or
services which are directly competitive with the Business of the Company (as
described in Part I, Item 1 of the Company’s Annual Report on Form 10-K filed
with the U.S. Securities and Exchange Commission prior to the termination date,
which is incorporated herein by reference) or with any technology, products or
services being actively developed, with the bona fide intent to market same, by
the Company at the termination date or
engaged in any business that is directly competitive with the Business of the
Company, or with any business in
which,
to Executive’s knowledge, the Company is preparing
to engage, at the time the Executive’s employment with Company terminates
(“Restricted Business”).  Notwithstanding the foregoing, it shall not
be a violation of this paragraph if Executive performs services for a Restricted
Business that in no way relates to the Company’s primary focus on methods of
oral drug delivery; or (ii) make or hold any investment in any Restricted
Business, whether such investment be by way of loan, purchase of stock or
otherwise, provided that there shall be excluded from the foregoing the
ownership of not more than 1% of the listed or traded stock of any publicly held
corporation.  For purposes of this Section 11, the term “Company”
shall mean and include Company, any subsidiary or affiliate of Company, any
successor to the business of Company (by merger, consolidation, sale of assets
or stock or otherwise) and any other corporation or entity of which Executive
may serve as a director, officer or employee at the request of Company or any
successor of Company.

     

    11.3           Reasonableness
of Restrictions.  Executive represents and agrees that the
restrictions on competition, as to time, geographic area, and scope of activity,
required by this Section 11 are reasonable, do not impose a greater
restraint than is necessary to protect the goodwill and business interests of
Company, and are not unduly burdensome to Executive.  Executive
expressly acknowledges that Company competes on a nationwide basis and that the
geographical scope of these limitations is reasonable and necessary for the
protection of Company’s trade secrets and other confidential and proprietary
information.

     

    11.4           Reformation
if Necessary.  In the event a court of competent jurisdiction
determines that the geographic area, duration, or scope of activity of any
restriction under this Section 11 and its subsections is unenforceable, the
restrictions under this section and its subsections shall not be terminated but
shall be reformed and modified to the extent required to render them valid and
enforceable.

     

    12.           Non-Solicitation.  Executive
agrees that during the term of this Agreement and for a period of one
(1) year after the termination of this Agreement, Executive will not,
either directly or indirectly, separately or in association with others,
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    business
by soliciting, encouraging or recruiting any of Company’s employees or causing
others to solicit or encourage or recruit any of Company’s employees to
discontinue their employment with Company.

     

    13.           Nondisparagement.  Upon
termination of Executive’s employment relationship hereunder, Company and
Executive agree that, unless otherwise legally required to do so, they will each
at all times thereafter refrain from discussing the circumstances relating to
such termination and from disparaging, or describing in a derogatory light, the
performance, capabilities, services, business practices, or ethics of the other
(or of the officers, directors or controlling shareholders of the other). This
provision does not apply to statements made by Executive to Executive’s
immediate family or attorneys, or to statements made by either party in legal
proceedings in conjunction with legal actions to pursue rights and/or remedies
under this Agreement, or as otherwise required by law.

     

    14.           Right To
Injunction/ Costs Of Enforcement.  Executive acknowledges that
Company will suffer immediate and irreparable harm that will not be compensable
by damages alone in the event Executive repudiates or breaches Sections 9,10 11,
12 or 13 or threatens or attempts to do so.  In the event of any such
breach or any threatened or attempted breach, Executive agrees that Company, in
addition to and not in limitation of any other rights, remedies or damages
available to it at law or in equity, shall be entitled to obtain temporary,
preliminary and permanent injunctions to prevent or restrain any such breach,
and Company shall not be required to post a bond as a condition for the granting
of such relief.

     

    15.           Agreement
to Arbitrate.  In the event of any dispute or claim relating to
or arising out of the employment relationship between Company and Executive or
the termination of that relationship (including, but not limited to, any claims
of wrongful termination or age, sex, race, disability or other discrimination),
Executive and Company agree that all such disputes shall be fully and finally
resolved by binding arbitration conducted before a single neutral arbitrator in
Seattle, Washington pursuant
to the rules for arbitration of employment disputes by the American Arbitration
Association (available at www.adr.org).  This agreement to arbitrate
is subject to the Federal Arbitration Act.  The arbitrator shall
permit adequate discovery and is empowered to award all remedies otherwise
available in a court of competent jurisdiction.  Any judgment rendered
by the arbitrator may be entered by any court of competent
jurisdiction.  The arbitrator shall issue an award in writing and
state the essential findings and conclusions on which the award is
based.  By executing this Agreement, Executive and Company are both
waiving the right to a jury trial with respect to any such
disputes.  Company shall bear the costs of the arbitrator, forum and
filing fees.  Each party shall bear its own respective attorneys’ fees
and all other costs, unless otherwise provided by law and awarded by the
arbitrator.  This arbitration agreement does not include claims that,
by law, may not be subject to mandatory arbitration.

     

    16.           General
Provisions.

     

    16.1           Successors
and Assigns.  The rights and obligations of Company under this
Agreement shall inure to the benefit of and shall be binding upon the successors
and assigns of Company.  Executive shall not be entitled to assign any
of Executive’s rights or obligations under this Agreement.

     

    16.2           Waiver.  Either
party’s failure to enforce any provision of this Agreement shall not in any way
be construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Agreement.

     

    16.3           Severability.  In
the event any provision of this Agreement is found to be unenforceable by an
arbitrator or court of competent jurisdiction, such provision shall be deemed
modified to the extent necessary to allow enforceability of the provision as so
limited, it being intended that the parties shall receive the benefit
contemplated herein to the fullest extent permitted by law.  If a
deemed modification is not satisfactory in the judgment of such arbitrator or
court, the unenforceable

     

    
      
        
          
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provision
shall be deemed deleted, and the validity and enforceability of the remaining
provisions shall not be affected thereby.

     

    16.4           Interpretation;
Construction.  The headings set forth in this Agreement are for
convenience only and shall not be used in interpreting this
Agreement.  This Agreement has been drafted by legal counsel
representing Company, but Executive has participated in the negotiation of its
terms.  Furthermore, Executive acknowledges that Executive has had an
opportunity to review and revise the Agreement and have it reviewed by legal
counsel, if desired, and, therefore, the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Agreement.

     

    16.5           Governing
Law.  This Agreement will be governed by and construed in
accordance with the laws of the United States and the State of
Washington.  Each party consents to the jurisdiction and venue of the
state or federal courts in King County, Washington, if applicable, in any
action, suit, or proceeding arising out of or relating to this
Agreement.

     

    16.6           Notices.  Notices
and all other communications contemplated by this Agreement shall be in writing
and shall be deemed to have been duly given (i) by personal delivery when
delivered personally; (ii) by overnight courier upon written verification of
receipt; (iii) by telecopy or facsimile transmission upon acknowledgment of
receipt of electronic transmission; or (iv) by certified or registered mail,
return receipt requested, upon verification of receipt.  In the case
of Executive, mailed notices shall be addressed to the home address which
Executive most recently communicated to Company in writing.  In the
case of Company, mailed notices shall be addressed to its corporate
headquarters, and all notices shall be directed to the attention of the Board of
Directors.

     

    16.7           Survival.  Sections
7 (“Termination of Executive’s Employment”), 9 (“No Violation of Rights of Third
Parties”), 10 (“Confidentiality and Proprietary Rights”), 11 (“Post-Termination
Non-Competition”), 12 (“Non-Solicitation”), 13 (“Nondisparagement”), 14 (“Right
to Injunction/ Costs of Enforcement” ), 15 (“Agreement to Arbitrate”), 16
(“General Provisions”) and 17 (“Entire Agreement”) of this Agreement shall
survive Executive’s employment by Company.

     

    17.           Entire
Agreement.  This Agreement, including Company’s Employee
Proprietary Information and Invention Agreement incorporated herein by
reference, constitutes the entire agreement between the parties relating to this
subject matter and supersedes all prior or simultaneous representations,
discussions, negotiations, and agreements, whether written or
oral.  This Agreement may be amended or modified only with the written
consent of Executive and an authorized representative of Company.  No
oral waiver, amendment or modification will be effective under any circumstances
whatsoever.

     

     

     

     

     

    [SIGNATURE
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    THE PARTIES TO THIS EMPLOYMENT
AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY
PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT
ON THE DATES SHOWN BELOW.

     

     

    Dated:  April
14, 2008                           /s/ Richard M. Levy    

    Richard
M. Levy

     

     

    SCOLR
PHARMA, INC.

     

     

    Dated: April
14, 2008           By:   /s/ Daniel O. Wilds      

     

    Name:  Daniel O.
Wilds

     

    Its:
President
&
CEO                                                                

     

     

    
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2008 

      9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]