Document:

ex10_06.htm

    
      
        

      

    

    EXHIBIT
      10.06

    

    EMPLOYMENT
      AGREEMENT

    

    AGREEMENT,
      dated as of September 10, 2007, by and between S&A Purchasing Corp., a New
      York corporation, with its principal office located at 275 Wagaraw Road,
      Hawthorne, New Jersey 07506 (the "Company") and Brian Mead, residing at 8
      Hillside Avenue, Great Barrington, 01230 (the "Employee").

    

    
      	
              1.

            	
              Employment:

            

    

    

    
      	
            	
              a)

            	
              Upon
                the terms and conditions hereinafter set forth, the Company hereby
                employs
                the Employee, and the Employee hereby accepts employment, as Vice
                President of the Company.

            

    

    

    
      	
            	
              b)

            	
              Employee
                represents and warrants to the Company that he is free to enter into
                this
                Agreement in accordance with the terms hereof and is under no restriction,
                contractual or otherwise, which would interfere with his execution
                hereof
                or performance hereunder.

            

    

    

    
      	
              2.

            	
              Term.
                The Employee's employment hereunder shall be for a term (the "Term")
                commencing as of this date (the "Commencement Date") and terminating
                at
                the close of business on December 31,
                2010.

            

    

    

    
      	
              3.

            	
              Duties.
                During the Term, the Employee shall report to the President of the
                Company
                or his designee and shall perform such duties, consistent with his
                position hereunder, as may be assigned to him from time to time by
                the
                President of the Company. The Employee shall devote his best efforts
                and
                his entire time, attention and energies, during regular working hours,
                to
                the performance of his duties hereunder and to the furtherance of
                the
                business and interests of the Company, its subsidiaries and affiliate
                companies.  Employee shall engage in no other business
                activities other than the passive supervision of his
                investments.

            

    

    

    
      	
              4.

            	
              Compensation:

            

    

    

    
      	
            	
              a)

            	
              Compensation.
                For all services rendered by the Employee hereunder and all covenants
                and
                conditions undertaken by him pursuant to this Agreement, the Company
                shall
                pay, and the Employee shall accept a salary at the rate of $85,000
                per
                annum for the first full year of employment and said compensation
                shall be
                increased by CPI Index percentage increases annually. Compensation
                shall
                be payable not less frequently than in bi-weekly
                installments.

            

    

    

    
      	
            	
              b)

            	
              Additional
                Incentive Compensation.  For each year (twelve months) of
                the Term of this Agreement, Employee shall receive, as additional
                compensation, an incentive based on the Pre-tax Profit of S&A
                Purchasing Corp. and will be as
                follows:

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Compensation
                Based on Pre-tax Profit of S&A Purchasing Corp.

            	 
	 	 	 	 	 
	
              Pre-tax
                Profit

            	 	 	
              Incentive

            	 
	$	
              320,000

            	 	 	$	
              5,000

            	 
	$	
              350,000

            	 	 	$	
              10,000

            	 
	$	
              380,000

            	 	 	$	
              15,000

            	 
	$	
              400,000

            	 	 	$	
              20,000

            	 
	$	
              450,000

            	 	 	$	
              25,000

            	 
	
              $500,000
                and up

            	 	 	$	
              35,000

            	 

    

    

    
      	
               

            	
              i)

            	
              The
                Company may (but shall not be obligated to), at any time and from
                time to
                time, grant to the Employee an increase or increases in the incentive
                compensation, otherwise payable pursuant to this Section, but such
                increase or increases, if any, shall not be deemed to alter, modify,
                waive
                or otherwise affect any other term, covenant or condition of this
                Agreement. Any incentive due, pursuant to the terms of this paragraph,
                shall be paid by Company within 60 days of each anniversary of the
                Commencement Date, subject to audit adjustments.  The incentive
                described above is exclusive and not additive, by way of example,
                if the
                pre-tax profit of the Company is $400,000, then the total incentive
                earned
                would be $20,000.

            

    

    

    
      	
            	
              c)

            	
              Deductions.  The
                Company shall deduct from the compensation described in this Section
                any
                Federal, state or local withholding taxes, social security contributions
                and any other amounts which may be required to be deducted or withheld
                by
                the Company pursuant to any Federal, state or city laws, rules or
                regulations.

            

    

    

    
      	
              5.

            	
              Benefits;
                Expenses:

            

    

    

    
      	
            	
              a)

            	
              Fringe
                Benefits.  During the Term, the Employee shall be entitled
                to participate in such group life, health, accident, disability or
                hospitalization insurance plans as the Company may make available
                to its
                other employees.

            

    

    

    
      	
            	
              b)

            	
              Automobile.  The
                Company shall provide Employee with an automobile for the Employee
                to
                utilize related to his employment activities.  The automobile
                shall be comparable in style and value to a 2006 GMC CK2500 HD XLT
                CREW
                CAB and shall be equipped with a snow
                plow.

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
            	
              c)

            	
              Expenses.
                Upon presentation of an itemized account thereof, with such substantiation
                as the Company shall require, the Company shall pay or reimburse
                the
                Employee for the reasonable and necessary expenses directly and properly
                incurred by the Employee in connection with the performance of his
                duties
                hereunder, subject to guidelines established by the Board of
                Directors.  The Company also agrees to reimburse Employee for
                reasonable club dues and expenses, as required by Employee to conduct
                Company's business including, but not limited to, Company sales meetings,
                employee meetings and other required matters relating to Company
                business.  Employee estimates these expenses to be approximately
                $7,500 per annum.

            

    

    

    
      	
            	
              d)

            	
              Vacations.
                During the Term, the Employee shall be entitled to paid holidays
                and paid
                vacations in accordance with the policy of the Company as determined
                by
                the President of the Company provided, however, that the Employee
                shall be
                entitled to not less than three weeks paid vacation during each year
                of
                the Term, to be taken at times convenient to the Employee and to
                the
                Company.

            

    

    

    
      	
              6.

            	
              Location.
                Notwithstanding anything which may be contained herein to the contrary,
                the Employee's offices shall be located in the County of Berkshire,
                State
                of Massachusetts area and the performance of his duties hereunder
                shall
                not require his continued presence outside of such counties if the
                Employee shall object thereto.

            

    

    

    
      	
              7.

            	
              Termination:

            

    

    

    
      	
            	
              a)

            	
              The
                employment of the Employee, and the obligations of the Employee and
                the
                Company hereunder, shall cease and terminate (except as otherwise
                specifically provided in this Agreement) upon the first to occur
                on the
                following dates (the "Termination Date") described in this
                Section:

            

    

    

    
      	
               

            	
              i)

            	
              The
                date of expiration by its terms of the
                Term;

            

    

    

    
      	
               

            	
              ii)

            	
              The
                date of death of the Employee;

            

    

    

    
      	
               

            	
              iii)

            	
              The
                occurrence of a Disability Event; For purposes of this Agreement,
                the
                term, "Disability", shall mean Employee’s inability to perform his
                material duties under this Agreement because of any illness or physical
                or
                mental disability, or their incapacity, as evidenced by a written
                statement of a physician licensed to practice medicine in the State
                of
                Massachusetts selected by the Company, which disability, or other
                incapacity, continues for a period in excess of six (6) consecutive
                months
                in any consecutive twelve-month
                period.

            

    

    

    
      	
               

            	
              iv)

            	
              The
                Employee is terminated “For Cause” (as defined in Section
                9).

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
            	
              b)

            	
              Rights
                after Termination;

            

    

    

    
      	
               

            	
              i)

            	
              In
                the event the Employee is terminated For Cause, the Employee shall
                be
                entitled to receive salary and benefits accrued to the date of
                termination, and Employee shall not be entitled to any other payment,
                including but not limited to, any portion of Additional Incentive
                Compensation otherwise payable to
                Employee.

            

    

    

    
      	
               

            	
              ii)

            	
              In
                the event the employment is terminated by reason of death or disability,
                Employee shall be entitled to receive (i) salary and benefits accrued
                to
                the date of death or disability, and (ii) a pro rata share of any
                additional Incentive Compensation in an amount obtained by multiplying
                the
                additional Incentive Compensation for the full year or period, as
                the case
                may be, in which death or disability occurred, by a fraction, the
                numerator of which is the number of days in the year or period in
                which
                Employee was employed and the denominator of which is the number
                of days
                of the year (365).

            

    

    

    
      	
              8.

            	
              Restrictive
                Covenants:

            

    

    

    
      	
            	
              a)

            	
              Non-Disclosure.  The
                Employee shall not at any time during or after the term of this Agreement
                disclose or furnish to any other person, firm or corporation (the
                "Entity") except in the course of the performance of his duties hereunder,
                the following:

            

    

    

    
      	
               

            	
              i)

            	
              any
                information relating to any process, technique or procedure used
                by the
                Company, including, without limitation, computer programs and methods
                of
                evaluation and pricing and marketing techniques;
                or

            

    

    

    
      	
               

            	
              ii)

            	
              any
                information relating to the operations or financial status of the
                Company,
                including, without limitation, all financial data and sources of
                financing, which is not specifically a matter of public record;
                or

            

    

    

    
      	
               

            	
              iii)

            	
              any
                information of a confidential nature obtained as a result of his
                prior,
                present or future relationship with the Company, which is not specifically
                a matter of public record; or

            

    

    

    
      	
               

            	
              iv)

            	
              any
                trade secrets of the Company; or

            

    

    

    
      	
               

            	
              v)

            	
              the
                name, address or other information relating to any customer or debtor
                of
                the Company; or

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              vi)

            	
              any
                Confidential Information, or divulge, communicate, use to the detriment
                of
                the Company or for the benefit of any other person or persons, any
                Confidential Information, or misuse in any way, Confidential Information
                pertaining to the Business.  Any confidential information or
                data now known or hereafter acquired by the Employee with respect
                to the
                Business shall be deemed a valuable, special and unique asset of
                the
                Company that is received by the Employee, in confidence and as a
                fiduciary, and the Employee shall remain a fiduciary to the Company
                with
                respect to all of such information.

            

    

    

    
      	
            	
              b)

            	
              Non-Competition.  The
                Employee shall not, during the period (the “Restricted Period”) from the
                date hereof until the later of one year after the termination of
                his
                employment with the Company or the third anniversary of the Closing
                date
                (as defined in the Asset Purchase Agreement dated September 10, 2007
                by
                and among the Company, Employee and other parties set forth on the
                signatory page thereto (the
“APA”)):

            

    

    

    
      	
               

            	
              i)

            	
              Without
                the prior written consent of the Company (A) directly or indirectly
                acquire or own in any manner any interest (whether through a debt
                or
                equity instrument) in any person, firm, partnership, corporation,
                association or other entity (including the Company) which engages
                or plans
                to engage in any facet of the Business or which competes or plans
                to
                compete in any way with the Company or any of its subsidiaries or
                Affiliates anywhere with the Territory. Territory means any state
                (including the District of Columbia), territory or possession of
                the
                United States within which the Company presently or hereafter does
                business or within a 50-mile radius of any of the Owned Premises,
                Owned
                Real Estate, Real Property and/or Leased Premises (as defined in
                the APA),
                (B) be employed by or serve as an employee, agent, officer, director
                of,
                or as a consultant to, any person, firm, partnership, corporation,
                association or other entity which engages or plans to engage in any
                facet
                of the Business in which the Company now or hereafter engages or
                which
                competes or plans to compete in any way with the Company or any of
                its
                subsidiaries or Affiliates within the Territory, or (C) utilize his
                special knowledge of the business of each Seller or the Company and
                his
                relationship with customers, suppliers and others to compete with
                Company
                and/or its Affiliates in any business which engages or plans to engage
                in
                any facet of the Business in which the Company now or hereafter engages
                or
                which competes or plans to compete in any way with the Company or
                any of
                its subsidiaries or Affiliates within the Territory; provided, however,
                that nothing herein shall be deemed to prevent either Employee from
                (x)
                acquiring through market purchases and owning, solely as a passive
                investment, less than one percent in the aggregate of the equity
                securities of any class of any issuer whose shares are registered
                under
                §12(b) or 12(g) of the Securities Exchange Act of 1934, as amended,
                and
                are listed or admitted for trading on any United States national
                securities exchange or are quoted on the National Association of
                Securities Dealers Automated Quotation System, or any similar system
                of
                automated dissemination of quotations of securities prices in common
                use,
                so long as Employee is not a member of any “control group” (within the
                meaning of the rules and regulations of the United States Securities
                and
                Exchange Commission) of any such issuer.  Employee acknowledges
                and agrees that the covenants provided for in this Section are reasonable
                and necessary in terms of time, area and line of business to protect
                the
                trade secrets of the Company.  Employee further acknowledges and
                agrees that such covenants are reasonable and necessary in terms
                of time,
                area and line of business to protect the Company’s legitimate business
                interests, which include its interests in protecting the Company’s (i)
                valuable confidential business information, (ii) substantial relationships
                with customers, and (iii) customer goodwill associated with the ongoing
                Business.  Employee hereby expressly authorizes the enforcement
                of the covenants provided for in this Section by (A) the Company
                and its
                subsidiaries, (B) the Company’s permitted assigns, and (C) any successors
                to the Company’s business.  To the extent that the covenants
                provided for in this Section may later be deemed by a court to be
                too
                broad to be enforced with respect to its duration or with respect
                to any
                particular activity or geographic area, the court making such
                determination shall have the power to reduce the duration or scope
                of the
                provision, and to add or delete specific words or phrases to or from
                the
                provision.  The provision as modified shall then be
                enforced.

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              ii)

            	
              The
                Employee shall not, directly or indirectly, for himself or for any
                other
                person, firm, corporation, partnership, association or other entity
                (including the Company), (A) solicit any of the Sellers’ employees
                employed in the Business, (B) call on or solicit any of the actual
                customers or clients of the Business, nor shall Employee make known
                the
                names and addresses of such customers or any information relating
                in any
                manner to the Company’s or the Sellers’ trade or business relationships
                with such customers, (C) in any manner, directly or indirectly, attempt
                to
                seek to cause any entity to refrain from dealing or doing business
                with
                the Company or assist any entity in doing so or attempting to do
                so or (D)
                employ any employees of Company.

            

    

    

    
      	
               

            	
              iii)

            	
              Injunction.  Employee
                recognizes and hereby acknowledges that a breach or violation by
                Employee
                of any or all of the covenants and agreements contained in this Section
                may cause irreparable harm and damage to the Company in a monetary
                amount
                which may be virtually impossible to ascertain.  As a result,
                Employee recognizes and hereby acknowledges that the Company shall
                be
                entitled (without the requirement of posting a bond) to an injunction
                from
                any court of competent jurisdiction enjoining and restraining any
                breach
                or violation of any or all of the covenants and agreements contained
                in
                this Section by the Employee, his, Affiliates, partners or agents,
                either
                directly or indirectly, and that such right to injunction shall be
                cumulative and in addition to whatever other rights or remedies the
                Company  may possess hereunder, at law or in
                equity.  Nothing contained in this Section shall be construed to
                prevent the Company from seeking and recovering from the Employee,
                jointly
                and severally, damages sustained by it as a result of any breach
                or
                violation by they Employee of any of the covenants or agreements
                contained
                herein.

            

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              9.

            	
              Termination
                by the Company “For Cause.”  At any time during the term of
                this Agreement, the Company may discharge the Employee for cause
                and
                terminate this Agreement without any further liability hereunder
                to the
                Employee or his estate, except to pay any accrued, but unpaid, salary
                but
                not Incentive Compensation to him.  In the event of such
                termination, Employee agrees he shall also be deemed to have resigned
                from
                the Company and its Parent, as a Manager and Employee, effective
                as of the
                date of such termination.  For purposes of this Agreement, a
                "discharge for cause" shall mean termination of the Employee upon
                written
                notification to the Employee limited, however, to one or more of
                the
                following reasons:

            

    

    

    
      	
            	
              a)

            	
              Fraud,
                misappropriation or embezzlement by the Employee in connection with
                the
                Company; or

            

    

    

    
      	
            	
              b)

            	
              Neglect
                of duties or insubordination, after notice to the Employee of the
                particular details thereof and a period of fifteen (15) days to correct
                such actions or omissions, if any;
                or

            

    

    

    
      	
            	
              c)

            	
              Conviction
                by a court of competent jurisdiction in the United States of a felony
                or a
                crime involving moral turpitude; or

            

    

    

    
      	
            	
              d)

            	
              Willful
                and unauthorized disclosure of confidential, or proprietary trade
                secret
                information of the Company; or

            

    

    

    
      	
            	
              e)

            	
              The
                Employee's breach of any material term or provision of this Agreement,
                after notice to the Employee of the particular details thereof and
                a
                period of not less than thirty (30) days thereafter within which
                to cure
                such breach, if any.

            

    

    

    
      	
              10.

            	
              Miscellaneous:

            

    

    

    
      	
            	
              c)

            	
              Assignment.  This
                Agreement shall not be assigned by either party, except that the
                Company
                shall have the right to assign its rights hereunder to any parent,
                subsidiary and affiliate of, or successor to, the
                Company.

            

    

    

    
      	
            	
              d)

            	
              Binding
                Effect.  This agreement shall extend to and be binding upon
                the Employee, his legal representatives, heirs and distributees,
                and upon
                the Company, its successors and
                assigns.

            

    

    

    
      	
            	
              e)

            	
              Notices.
                Any notice, request, instruction, correspondence or other document
                to be
                given hereunder by any party hereto to another (herein collectively
                called
                “Notice”) shall be in writing and delivered personally or mailed by
                registered or certified mail, postage prepaid and return receipt
                requested,  as follows:

            

    

    

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    
      	
              IF
                TO THE COMPANY:

            	 
	 	
              William
                Pagano

            
	 	
              c/o
                Universal Supply Group, Inc.

            
	 	
              275
                Wagaraw Road

            
	 	
              Hawthorne,
                New Jersey 07506

            
	 	 
	
              IF
                TO THE EMPLOYEE:

            	 
	 	
              Brian
                Mead

            
	 	
              8
                Hillside Avenue

            
	 	
              Great
                Barrington, 01230

            

    

    

    
      	
               

            	
              f)

            	
              Waiver.  A
                waiver by a party hereto of a breach of any term, covenant or condition
                of
                this Agreement by the other party hereto shall not operate or be
                construed
                as waiver of any other or subsequent breach by such party of the
                same or
                any other term, covenant or condition
                hereof.

            

    

    

    
      	
            	
              g)

            	
              Prior
                Agreements.  Other than for that certain APA, any and all
                prior agreements between the Company and the Employee, whether written
                or
                oral, between the parties, relating to any and all matters covered
                by, and
                contained or otherwise dealt within this Agreement are hereby canceled
                and
                terminated.

            

    

    

    
      	
            	
              h)

            	
              Entire
                Agreement.  No waiver, modification, change or amendment of
                any of the provisions of this Agreement shall be valid unless in
                writing
                and signed by the party against whom such claimed waiver, modification,
                change or amendment is sought to be
                enforced.

            

    

    

    
      	
               

            	
              i)

            	
              Definitions.
                All capitalized terms not defined herein shall have the meaning set
                forth
                in the APA.

            

    

    

    
      	
               

            	
              j)

            	
              Authority.
                The parties severally represent and warrant that they have the power,
                authority and right to enter into this agreement and to carry out
                and
                perform the terms; covenants and conditions
                hereof.

            

    

    

    
      	
            	
              k)

            	
              Applicable
                Law. THE
                PARTIES AGREE
                THAT THE FEDERAL COURTS IN SPRINGFIELD, MASSACHUSETTS AND STATE COURTS
                IN
                BERKSHIRE COUNTY, MASSACHUSETTS SHALL HAVE EXCLUSIVE JURISDICTION
                ON ALL
                MATTERS ARISING OUT OF OR CONNECTED IN ANY WAY WITH THIS AGREEMENT,
                AND
                EMPLOYEE FURTHER AGREES THAT THE SERVICE OF PROCESS OR OF ANY OTHER
                PAPERS
                UPON THEM IN THE MANNER PROVIDED FOR NOTICES HEREUNDER SHALL BE DEEMED
                GOOD, PROPER AND EFFECTIVE SERVICE UPON
                THEM.

            

    

    

    
      	
               

            	
              l)

            	
              Severability.  In
                the event that any of the provisions of this Agreement, or any portion
                thereof, shall be held to be invalid or unenforceable, the validity
                and
                enforceability of the remaining provisions shall not be affected
                or
                impaired, but shall remain in full force and
                effect.

            

    

    

    
      	
            	
              m)

            	
              Titles.
                The titles of the Articles and Sections of this Agreement are inserted
                merely for convenience and ease of reference and shall not affect
                or
                modify the meaning of any of the terms, covenants or conditions of
                this
                Agreement.

            

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

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

    

    
      	 	
              S&A
                Purchasing Corp.

            
	 	 	 
	 	
              BY:

            	
              /s/  
                William Pagano

            
	 	 	
              William
                Pagano

            
	 	 	 
	 	
              BY:

            	
              /s/  
                Brian Mead

            
	 	 	
              Brian
                Mead, Employee

            

    

    

     

    9ex10_07.htm

    
      

    

    EXHIBIT
      10.07

    

    CONSULTING
      AGREEMENT

    

    AGREEMENT,
      dated as of September 10, 2007, by and between S&A Purchasing Corp., a New
      York corporation, with its principal office located at 275 Wagaraw Road,
      Hawthorne, New Jersey 07506 (the "Company") and Nancy Mead, residing at 90
      State
      Road, Great Barrington, Massachusetts 01230 (the "Consultant").

    

    
      	
              1.

            	
              Arrangement:

            

    

    

    
      	
            	
              a)

            	
              Upon
                the terms and conditions hereinafter set forth, Consultant hereby
                agrees
                to provide consulting services to the
                Company.

            

    

    

    
      	
            	
              b)

            	
              Consultant
                represents and warrants to the Company that she is free to enter
                into this
                Agreement in accordance with the terms hereof and is under no restriction,
                contractual or otherwise, which would interfere with her execution
                hereof
                or performance hereunder.

            

    

    

    
      	
              2.

            	
              Term.  This
                Agreement shall commence as of the date first written above (the
                "Commencement Date") and shall terminate at the close of business
                on
                December 31, 2010 (the “Term”).

            

    

    

    
      	
              3.

            	
              Consulting
                Services and Benefits. The President of the Company may request the
                Consultant to perform consulting services on behalf of the Company
                from
                time to time and such services are not to exceed 1 hour per
                month.  For and in consideration of the services performed by
                Consultant, the Company shall provide group health or hospitalization
                insurance plans in the form and coverage as the Company makes available
                to
                its full time employees.

            

    

    

    
      	
              4.

            	
              Independent
                Contractor Status.  The Consultant is an independent
                contractor of the Company.  The Agreement does not render the
                Consultant an employee, partner, agent of, or joint venturer with
                the
                Company for any purpose, and Consultant will not hold herself out
                as such.
                The Consultant shall pay any taxes, duties or charges of any kind
                (including any withholding or value added taxes) imposed by any federal,
                state or local governmental entity for any payments made to the Consultant
                hereunder.

            

    

    

    
      	
              5.

            	
              Location.  Notwithstanding
                anything which may be contained herein to the contrary, the Consultant's
                offices shall be located in the County of Berkshire, State of
                Massachusetts area and the performance of her duties hereunder shall
                not
                require her continued presence outside of such counties if the Consultant
                shall object thereto.

            

    

    

    
      	
              6.

            	
              Termination.  The
                employment of the Consultant, and the obligations of the Consultant
                and
                the Company hereunder, shall cease and terminate (except as otherwise
                specifically provided in this Agreement) upon the first to occur
                on the
                following dates (the "Termination Date") described in this
                Section:

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              a)

            	
              The
                date of expiration by its terms of the
                Term;

            

    

    

    
      	
            	
              b)

            	
              The
                date of death of the Consultant;

            

    

    

    
      	
            	
              c)

            	
              The
                Consultant is terminated “For Cause” (as defined in Section
                8).

            

    

    

    
      	
              7.

            	
              Restrictive
                Covenants:

            

    

    

    
      	
            	
              a)

            	
              Non-Disclosure.  The
                Consultant shall not at any time during or after the term of this
                Agreement disclose or furnish to any other person, firm or corporation
                (the "Entity") except in the course of the performance of her duties
                hereunder, the following:

            

    

    

    
      	
               

            	
              i)

            	
              any
                information relating to any process, technique or procedure used
                by the
                Company, including, without limitation, computer programs and methods
                of
                evaluation and pricing and marketing techniques;
                or

            

    

    

    
      	
               

            	
              ii)

            	
              any
                information relating to the operations or financial status of the
                Company,
                including, without limitation, all financial data and sources of
                financing, which is not specifically a matter of public record;
                or

            

    

    

    
      	
               

            	
              iii)

            	
              any
                information of a confidential nature obtained as a result of her
                prior,
                present or future relationship with the Company, which is not specifically
                a matter of public record; or

            

    

    

    
      	
               

            	
              iv)

            	
              any
                trade secrets of the Company; or

            

    

    

    
      	
               

            	
              v)

            	
              the
                name, address or other information relating to any customer or debtor
                of
                the Company; or

            

    

    

    
      	
               

            	
              vi)

            	
              any
                Confidential Information, or divulge, communicate, use to the detriment
                of
                the Company or for the benefit of any other person or persons, any
                Confidential Information, or misuse in any way, Confidential Information
                pertaining to the Business.  Any confidential information or
                data now known or hereafter acquired by the Consultant with respect
                to the
                Business shall be deemed a valuable, special and unique asset of
                the
                Company that is received by the Consultant, in confidence and as
                a
                fiduciary, and the Consultant shall remain a fiduciary to the Company
                with
                respect to all of such information.

            

    

    

    
      	
            	
              b)

            	
              Non-Competition.  The
                Consultant shall not, during the period (the “Restricted Period”) from the
                date hereof until the later of one year after the termination of
                her
                consulting arrangement with the Company or the third anniversary
                of the
                Closing date (as defined in the Asset Purchase Agreement dated September
                10, 2007 by and among the Company, Consultant and other parties set
                forth
                on the signatory page thereto (the
“APA”)):

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              i)

            	
              Without
                the prior written consent of the Company (A) directly or indirectly
                acquire or own in any manner any interest (whether through a debt
                or
                equity instrument) in any person, firm, partnership, corporation,
                association or other entity (including the Company) which engages
                or plans
                to engage in any facet of the Business or which competes or plans
                to
                compete in any way with the Company or any of its subsidiaries or
                Affiliates anywhere with the Territory. Territory means any state
                (including the District of Columbia), territory or possession of
                the
                United States within which the Company presently or hereafter does
                business or within a 50-mile radius of any of the Owned Premises,
                Owned
                Real Estate, Real Property and/or Leased Premises (as defined in
                the APA),
                (B) be employed by or serve as an Consultant, agent, officer, director
                of,
                or as a consultant to, any person, firm, partnership, corporation,
                association or other entity which engages or plans to engage in any
                facet
                of the Business in which the Company now or hereafter engages or
                which
                competes or plans to compete in any way with the Company or any of
                its
                subsidiaries or Affiliates within the Territory, or (C) utilize her
                special knowledge of the business of the Company and her relationships
                with customers, suppliers and others to compete with Company and/or
                its
                Affiliates in any business which engages or plans to engage in any
                facet
                of the Business in which the Company now or hereafter engages or
                which
                competes or plans to compete in any way with the Company or any of
                its
                subsidiaries or Affiliates within the Territory; provided, however,
                that
                nothing herein shall be deemed to prevent either Consultant from
                (x)
                acquiring through market purchases and owning, solely as a passive
                investment, less than one percent in the aggregate of the equity
                securities of any class of any issuer whose shares are registered
                under
                §12(b) or 12(g) of the Securities Exchange Act of 1934, as amended,
                and
                are listed or admitted for trading on any United States national
                securities exchange or are quoted on the National Association of
                Securities Dealers Automated Quotation System, or any similar system
                of
                automated dissemination of quotations of securities prices in common
                use,
                so long as Consultant is not a member of any “control group” (within the
                meaning of the rules and regulations of the United States Securities
                and
                Exchange Commission) of any such issuer.  Consultant
                acknowledges and agrees that the covenants provided for in this Section
                are reasonable and necessary in terms of time, area and line of business
                to protect the trade secrets of the Company.  Consultant further
                acknowledges and agrees that such covenants are reasonable and necessary
                in terms of time, area and line of business to protect the Company’s
                legitimate business interests, which include its interests in protecting
                the Company’s (i) valuable confidential business information, (ii)
                substantial relationships with customers, and (iii) customer goodwill
                associated with the ongoing Business.  Consultant hereby
                expressly authorizes the enforcement of the covenants provided for
                in this
                Section by (A) the Company and its subsidiaries, (B) the Company’s
                permitted assigns, and (C) any successors to the Company’s
                business.  To the extent that the covenants provided for in this
                Section may later be deemed by a court to be too broad to be enforced
                with
                respect to its duration or with respect to any particular activity
                or
                geographic area, the court making such determination shall have the
                power
                to reduce the duration or scope of the provision, and to add or delete
                specific words or phrases to or from the provision.  The
                provision as modified shall then be
                enforced.

            

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              ii)

            	
              The
                Consultant shall not, directly or indirectly, for herself or for
                any other
                person, firm, corporation, partnership, association or other entity
                (including the Company), (A) solicit any of the Company’s Consultants or
                employees employed in the Business, (B) call on or solicit any of
                the
                actual customers or clients of the Business, nor shall she make known
                the
                names and addresses of such customers or any information relating
                in any
                manner to the Company’s trade or business relationships with such
                customers, (C) in any manner, directly or indirectly, attempt to
                seek to
                cause any entity to refrain from dealing or doing business with the
                Company or assist any entity in doing so or attempting to do so or
                (D)
                employ any Consultants of Company.

            

    

    

    
      	
               

            	
              iii)

            	
              Injunction.  Consultant
                recognizes and hereby acknowledges that a breach or violation by
                Consultant of any or all of the covenants and agreements contained
                in this
                Section may cause irreparable harm and damage to the Company in a
                monetary
                amount which may be virtually impossible to ascertain.  As a
                result, Consultant recognizes and hereby acknowledges that the Company
                shall be entitled (without the requirement of posting a bond) to
                an
                injunction from any court of competent jurisdiction enjoining and
                restraining any breach or violation of any or all of the covenants
                and
                agreements contained in this Section by the Consultant, her, Affiliates,
                partners or agents, either directly or indirectly, and that such
                right to
                injunction shall be cumulative and in addition to whatever other
                rights or
                remedies the Company  may possess hereunder, at law or in
                equity.  Nothing contained in this Section shall be construed to
                prevent the Company from seeking and recovering from the Consultant,
                jointly and severally, damages sustained by it as a result of any
                breach
                or violation by they Consultant of any of the covenants or agreements
                contained herein.

            

    

    

    
      	
              8.

            	
              Termination
                by the Company “For Cause.”  At any time during the term of
                this Agreement, the Company may discharge the Consultant for cause
                and
                terminate this Agreement without any further liability hereunder
                to the
                Consultant or her estate, except to pay any accrued, but unpaid,
                compensation.  In the event of such termination, Consultant
                agrees she shall also be deemed to have resigned from the Company
                and its
                Parent, as a Consultant, effective as of the date of such
                termination.  For purposes of this Agreement, a "discharge for
                cause" shall mean termination of the Consultant upon written notification
                to the Consultant limited, however, to one or more of the following
                reasons:

            

    

    

    
      	
            	
              a)

            	
              Fraud,
                misappropriation or embezzlement by the Consultant in connection
                with the
                Company; or

            

    

    

    
      	
            	
              b)

            	
              Willful
                and unauthorized disclosure of confidential, or proprietary trade
                secret
                information of the Company; or

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              Miscellaneous:

            

    

    

    
      	
            	
              a)

            	
              Assignment.  This
                Agreement shall not be assigned by either party, except that the
                Company
                shall have the right to assign its rights hereunder to any parent,
                subsidiary and affiliate of, or successor to, the
                Company.

            

    

    

    
      	
            	
              b)

            	
              Binding
                Effect.  This agreement shall extend to and be binding upon
                the Consultant, his legal representatives, heirs and distributees,
                and
                upon the Company, its successors and
                assigns.

            

    

    

    
      	
            	
              c)

            	
              Notices.
                Any notice, request, instruction, correspondence or other document
                to be
                given hereunder by any party hereto to another (herein collectively
                called
                “Notice”) shall be in writing and delivered personally or mailed by
                registered or certified mail, postage prepaid and return receipt
                requested,  as follows:

            

    

    

    
      	
              IF
                TO THE COMPANY:

            	 
	 	
              William
                Pagano

            
	 	
              c/o
                Universal Supply Group, Inc.

            
	 	
              275
                Wagaraw Road

            
	 	
              Hawthorne,
                New Jersey 07506

            
	 	 
	
              IF
                TO THE CONSULTANT:

            	 
	 	
              Nancy
                Mead

            
	 	
              90
                State Road

            
	 	
              Great
                Barrington, Massachusetts 01230

            

    

    

    
      	
            	
              d)

            	
              Waiver.  A
                waiver by a party hereto of a breach of any term, covenant or condition
                of
                this Agreement by the other party hereto shall not operate or be
                construed
                as waiver of any other or subsequent breach by such party of the
                same or
                any other term, covenant or condition
                hereof.

            

    

    

    
      	
            	
              e)

            	
              Prior
                Agreements.  Other than for that certain APA, any and all
                prior agreements between the Company and the Consultant, whether
                written
                or oral, between the parties, relating to any and all matters covered
                by,
                and contained or otherwise dealt within this Agreement are hereby
                canceled
                and terminated.

            

    

    

    
      	
               

            	
              f)

            	
              Entire
                Agreement.  No waiver, modification, change or amendment of
                any of the provisions of this Agreement shall be valid unless in
                writing
                and signed by the party against whom such claimed waiver, modification,
                change or amendment is sought to be
                enforced.

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
            	
              g)

            	
              Definitions.
                All capitalized terms not defined herein shall have the meaning set
                forth
                in the APA.

            

    

    

    
      	
            	
              h)

            	
              Authority.
                The parties severally represent and warrant that they have the power,
                authority and right to enter into this agreement and to carry out
                and
                perform the terms; covenants and conditions
                hereof.

            

    

    

    
      	
               

            	
              i)

            	
              Applicable
                Law. THE
                PARTIES AGREE
                THAT THE FEDERAL COURTS IN SPRINGFIELD, MASSACHUSETTS AND STATE COURTS
                IN
                BERKSHIRE COUNTY, MASSACHUSETTS SHALL HAVE EXCLUSIVE JURISDICTION
                ON ALL
                MATTERS ARISING OUT OF OR CONNECTED IN ANY WAY WITH THIS AGREEMENT,
                AND
                CONSULTANT FURTHER AGREES THAT THE SERVICE OF PROCESS OR OF ANY OTHER
                PAPERS UPON THEM IN THE MANNER PROVIDED FOR NOTICES HEREUNDER SHALL
                BE
                DEEMED GOOD, PROPER AND EFFECTIVE SERVICE UPON
                THEM.

            

    

    

    
      	
               

            	
              j)

            	
              Severability.  In
                the event that any of the provisions of this Agreement, or any portion
                thereof, shall be held to be invalid or unenforceable, the validity
                and
                enforceability of the remaining provisions shall not be affected
                or
                impaired, but shall remain in full force and
                effect.

            

    

    

    
      	
            	
              k)

            	
              Titles.
                The titles of the Articles and Sections of this Agreement are inserted
                merely for convenience and ease of reference and shall not affect
                or
                modify the meaning of any of the terms, covenants or conditions of
                this
                Agreement.

            

    

    

    

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

    

    
      	 	
              S&A
                Purchasing Corp.

            
	 	 	 
	 	
              BY:

            	
              /s/  
                William Pagano

            
	 	 	
              William
                Pagano

            
	 	 	 
	 	
              BY:

            	
              /s/  
                Nancy Mead

            
	 	 	
              Nancy
                Mead, Consultant

            

    

     

     

    6

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