Document:

Exhibit 10.4

                              EMPLOYMENT AGREEMENT
     THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of the 1st
day of November, 2003, by and between MFA MORTGAGE INVESTMENTS, INC., a Maryland
corporation ("MFA"), and TERESA D. COVELLO, an individual residing at 12 Wincott
Drive, Melville, New York 11747 (the "Executive").

                              W I T N E S S E T H :

WHEREAS, MFA wishes to offer employment to, and secure the exclusive services
of, the Executive, and the Executive wishes to accept such offer, under the
terms and conditions described below. NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein contained, the parties hereto agree as
follows:

Term of Employment.

MFA hereby employs the Executive, and the Executive hereby accepts employment
with MFA, in the positions and with the duties and responsibilities as set forth
in Paragraph 2 below for the Term of Employment, subject to the terms and
conditions of this Agreement.

The Term of Employment under this Agreement shall include the Initial Term and
each Renewal Term. The Initial Term shall commence as of November 1, 2003 and
shall continue until October 31, 2005. The Term of Employment shall
automatically renew for a one-year period (each such renewal, a "Renewal Term")
at the end of the Initial Term and each Renewal Term, unless either party shall
give notice to the other not less than 90 days prior to the end of the Initial
Term or any Renewal Term, as the case may be, of her or its intent not to renew
such Initial Term or Renewal Term, as the case may be.

Position; Duties and Responsibilities.

During the Term of Employment, the Executive shall be employed as Senior Vice
President, Chief Accounting Officer and Treasurer of MFA, reporting to the Chief
Financial Officer of MFA (the "CFO"), with such duties and day-to-day management
responsibilities as are customarily performed by persons holding such offices at
similarly situated mortgage REITs and such other duties as may be mutually
agreed upon between the Executive and the Chief Executive Officer of MFA (the
"CEO") and/or the CFO.

During the Term of Employment, the Executive shall, without additional
compensation, also serve on the board of directors of, serve as an officer of,
and/or perform such executive and consulting services for, or on behalf of, such
subsidiaries or affiliates of MFA as the CEO, the CFO and/or the Board of
Directors of MFA (the "Board of Directors") may, from time to time, request. MFA
and such subsidiaries and affiliates are hereinafter referred to, collectively,
as the "Company." For purposes of this Agreement, the term "affiliate" shall
have the meaning ascribed thereto in Rule 12b-2 under the Securities Exchange
Act of 1934, as amended (the "Act").

During the Term of Employment, the Executive shall serve MFA faithfully,
diligently and to the best of her ability and shall devote substantially all of
her time and efforts to her employment and the performance of her duties under
this Agreement. Nothing herein shall preclude the Executive from engaging in
charitable and community affairs and managing her personal financial and legal
affairs, so long as such activities do not materially interfere with her
carrying out her duties and responsibilities under this Agreement.

Compensation.

Base Salary. During the first year of the Initial Term, MFA shall pay to the
Executive a base salary (the "Base Salary") equal to $180,000 per annum. With
respect to the second year of the Initial Term and any Renewal Term thereafter,
MFA shall pay to the Executive a Base Salary of not less than $180,000 per
annum; provided, however, that such Base Salary may be adjusted by the
Compensation Committee of the Board of Directors or the Board of Directors, as
the case may be, in connection with the Executive's Annual Review pursuant to
Paragraph 3(d) below. The Base Salary shall be paid in accordance with MFA's
normal payroll practices.

Performance Bonus. The Executive shall be eligible to receive an annual
performance bonus in such amount, in such manner and at such time as shall be
recommended by the CEO and/or the CFO and approved by the Compensation Committee
of the Board of Directors or the Board of Directors, as the case may be.

Long-Term Incentive Program. The Executive shall be eligible to receive such
stock option, restricted stock or dividend equivalent rights grants as the
Compensation Committee of the Board of Directors or the Board of Directors, as
the case may be, shall deem appropriate.
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Annual Review. The Compensation Committee of the Board of Directors or the Board
of Directors, as the case may be, shall, at least annually, review the
Executive's entire compensation package to determine whether it continues to
meet MFA's compensation objectives.

Employee Benefit Programs and Fringe Benefits.

During the Term of Employment, the Executive shall be entitled to four weeks of
vacation each calendar year and to participate in all executive incentive and
employee benefit programs of MFA now or hereafter made available to MFA's senior
executives or salaried employees generally, as such programs may be in effect
from time to time. MFA shall reimburse the Executive for any and all necessary,
customary and usual business expenses, properly receipted in accordance with
MFA's policies, incurred by the Executive in connection with her employment.

Termination of Employment.

Termination Due to Death or Disability. If the Executive's employment is
terminated during the Term of Employment by reason of the Executive's death or
Disability, the Executive's Term of Employment shall terminate automatically
without further obligations to the Executive, her legal representative or her
estate, as the case may be, under this Agreement except for (i) any compensation
earned but not yet paid, including and without limitation, any amount of Base
Salary accrued or earned but unpaid and any other payments payable to the
Executive pursuant to Paragraph 5(e) below, which amounts shall be promptly paid
in a lump sum to the Executive, her legal representative or her estate, as the
case may be, and (ii) continued payment on a monthly basis of the Executive's
then current Base Salary for a period of six months following the date of such
termination, which shall be paid to the Executive, her legal representative or
her estate, as the case may be.

Termination Without Cause. In the event the Executive's employment is terminated
by MFA without Cause, unless such termination is preceded by the Executive's
giving notice of her determination not to renew the Initial Term or any Renewal
Term pursuant to Paragraph 1(b), the Executive shall be entitled to both
continued payments of her then current Base Salary and continued health
insurance coverage at MFA's expense, until the later to occur of (i) the
expiration of the Term of Employment or (ii) the six-month anniversary of such
termination of employment, such Base Salary being payable at the same time such
amounts would have been payable to the Executive had her employment not
terminated.

Termination by MFA for Cause or Voluntary Termination by the Executive. In the
event the Executive's employment is terminated by MFA for Cause, is terminated
by the Executive voluntarily or is terminated by MFA pursuant to Paragraph 1(b),
the Executive shall be entitled to any compensation earned but not yet paid,
including and without limitation, any amount of Base Salary accrued or earned
but unpaid and any other payments payable to the Executive pursuant to Paragraph
5(e) below, as of the date of termination.

Termination Related to Change in Control. In the event of (1) the termination of
the Executive's employment by MFA without Cause that occurs both within two
months before and in anticipation of a Change in Control, (2) the resignation of
her employment by the Executive for any reason within three months following a
Change in Control or (3) the termination of the Executive's employment by MFA
other than for Cause or the Executive's resignation of her employment for Good
Reason within twelve months following a Change in Control:

MFA shall pay to Executive in a lump sum, within 30 days following the
termination of employment, an amount equal to 200% of the sum of (a) the
Executive's then current Base Salary and (b) the Executive's bonus for the
immediately preceding year;

all of the Executive's outstanding stock options shall immediately vest in full
and become exercisable for a period of 90 days from the date of termination but
in no event beyond the date on which any such option would have expired had the
Executive's employment not terminated; and

the Executive shall continue to participate in all health, life insurance,
retirement and other benefit programs at MFA's expense for the balance of the
Term of Employment, to the same extent as though the Executive's employment had
not terminated.

The Executive, in her sole and absolute discretion, may elect to reduce any such
payment in order to avoid imposition of the excise tax under Section 4999 of the
Internal Revenue Code of 1986, as amended.

Other Payments. Upon the termination of the Executive's employment, in addition
to the amounts payable under any Paragraph above, the Executive shall be
entitled to receive the following:

     o    any annual bonus earned during one or more preceding years but not
          paid;

     o    any vested deferred compensation (including any interest accrued on
          such deferred amounts);
<PAGE>

     o    reimbursement for reasonable business expenses incurred but not yet
          reimbursed by MFA; and

     o    any other benefits to which the Executive or her legal representative
          may be entitled under applicable plans and programs of MFA, as
          provided in Paragraph 4 above.

No Mitigation; No Offset. In the event of any termination of the Executive's
employment under this Agreement, she shall be under no obligation to seek other
employment or otherwise in any way to mitigate the amount of any payment
provided for in this Paragraph 5, and there shall be no offset against amounts
due him under this Agreement on account of any remuneration attributable to any
subsequent employment that she may obtain.

Definitions. For purposes of this Agreement, the following terms shall be
defined as set forth below:

Cause. "Cause" shall mean the Executive's (i) conviction, or entry of a guilty
plea or a plea of nolo contendre with respect to, a felony, a crime of moral
turpitude or any crime committed against the Company, (ii) engagement in willful
misconduct, willful or gross negligence, or fraud, embezzlement or
misappropriation relating to significant amounts, in each case in connection
with the performance of her duties under this Agreement; (iii) failure to adhere
to the lawful directions of the CEO, the CFO and/or the Board of Directors that
are reasonably consistent with her duties and position provided for herein; (iv)
breach in any material respect of any of the provisions of Paragraph 7 of this
Agreement resulting in material and demonstrable economic injury to MFA; (v)
chronic or persistent substance abuse that materially and adversely affects her
performance of her duties under this Agreement; or (vi) breach in any material
respect of the terms and provisions of this Agreement resulting in material and
demonstrable economic injury to MFA. Notwithstanding the foregoing, (i) the
Executive shall be given written notice of any action or failure to act that is
alleged to constitute Cause (a "Default"), and an opportunity for 20 business
days from the date of such notice in which to cure such Default, such period to
be subject to extension in the discretion of the CEO or, in his absence, the
Board of Directors; and (ii) regardless of whether the Executive is able to cure
any Default, the Executive shall not be deemed to have been terminated for Cause
without (x) reasonable prior written notice to the Executive setting forth the
reasons for the decision to terminate the Executive for Cause, (y) an
opportunity for the Executive, together with her counsel, to be heard by the CEO
or, in his absence, the Board of Directors, and (z) delivery to the Executive of
a notice of termination approved by said CEO or, in his absence, the Board of
Directors, stating his or its good faith opinion that the Executive has engaged
in actions or conduct described in the preceding sentence, which notice
specifies the particulars of such action or conduct in reasonable detail;
provided, however, MFA may suspend the Executive with pay until such time as her
right to appear before the CEO or the Board of Directors, as the case may be,
has been exercised, so long as such appearance is within two weeks of the date
of suspension.

Change in Control. A "Change in Control" shall mean the occurrence of any one of
the following events:

any "person," as such term is used in Sections 13(d) and 14(d) of the Act (other
than MFA, any of its affiliates or any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust of MFA or any
of its affiliates) together with all affiliates and "associates" (as such term
is defined in Rule 12b-2 under the Act) of such person, shall become the
"beneficial owner" (as such term is defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of MFA representing 30% or more of either
(A) the combined voting power of MFA's then outstanding securities having the
right to vote in an election of the Board of Directors ("voting securities") or
(B) the then outstanding shares of common stock of MFA ("Shares") (in either
such case other than as a result of an acquisition of securities directly from
MFA); or

persons who, as of the effective date of MFA's Second Amended and Restated 1997
Stock Option Plan, constitute MFA's Board of Directors (the "Incumbent
Directors") cease for any reason, including, without limitation, as a result of
a tender offer, proxy contest, merger or similar transaction, to constitute at
least a majority of the Board of Directors, provided that any person becoming a
Director of MFA subsequent to the effective date whose election or nomination
for election was approved by a vote of at least a majority of the Incumbent
Directors shall, for purposes of this Agreement, be considered an Incumbent
Director; or

there shall occur (A) any consolidation or merger of MFA or any subsidiary where
the stockholders of MFA, immediately prior to the consolidation or merger, would
not, immediately after the consolidation or merger, beneficially own (as such
term is defined in Rule 13d-3 under the Act), directly or indirectly, shares
representing in the aggregate 50% or more of the voting securities of the
corporation issuing cash or securities in the consolidation or merger (or of its
ultimate parent corporation, if any), (B) any sale, lease, exchange or other
transfer (in one transaction or a series of transactions contemplated or
arranged by any party as a single plan) of all or substantially all of the
assets of MFA or (C) any plan or proposal for the liquidation or dissolution of
MFA.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred for purposes of the foregoing clause (i) solely as the result of an
acquisition of securities by MFA which, by reducing the number of
<PAGE>

Shares or other voting securities outstanding, increases (x) the proportionate
number of Shares beneficially owned by any person to 30% or more of the Shares
then outstanding or (y) the proportionate voting power represented by the voting
securities beneficially owned by any person to 30% or more of the combined
voting power of all then outstanding voting securities; provided, however, that,
if any person referred to in clause (x) or (y) of this sentence shall thereafter
become the beneficial owner of any additional Shares or other voting securities
(other than pursuant to a stock split, stock dividend, or similar transaction),
then a "Change in Control" shall be deemed to have occurred for purposes of this
Paragraph 6(b).

Disability. "Disability" shall mean the Executive's inability for a period of
six consecutive months, to render substantially the services provided for in
this Agreement by reason of mental or physical disability, whether resulting
from illness, accident or otherwise, other than by reason of chronic or
persistent abuse of any substance (such as narcotics or alcohol).

Good Reason. "Good Reason" shall mean:

     o    a material diminution in the Executive's title, duties or
          responsibilities;

     o    relocation of the Executive's place of employment without her consent
          outside the New York City metropolitan area;

     o    the failure of MFA to pay within 30 business days any payment due from
          MFA;

     o    the failure of MFA to pay within a reasonable period after the date
          when amounts are required to be paid to the Executive under any
          benefit programs or plans; or

     o    the failure by MFA to honor any of its material obligations herein.

Covenant Not To Compete.

The Executive will not, without the prior written consent of MFA, manage,
operate, control or be connected as a stockholder (other than as a holder of
shares publicly traded on a stock exchange or the NASDAQ National Market System,
provided that the Executive shall not own more than five percent of the
outstanding shares of any publicly traded company) or partner with, or as an
officer, director, employee or consultant of, any mortgage REIT for a period of
one year following termination of her employment with MFA. During such one-year
period, the Executive shall not solicit any employees of the Company to work for
any mortgage REIT. Except as otherwise required by law, the Executive shall keep
confidential all materials, files, reports, correspondence, records and other
documents (collectively, the "Company Materials") used, prepared or made
available to him in connection with her employment by MFA and which have not
otherwise been made available to the public, and upon termination of her
employment shall return such Company Materials to MFA. The Executive
acknowledges that MFA may seek injunctive relief or other specific enforcement
of its rights under this Paragraph.

Indemnification.

MFA shall indemnify the Executive to the fullest extent permitted by Maryland
law in effect as of the date hereof in connection with the Executive's duties
with the Company, against all costs, expenses, liabilities and losses
(including, without limitation, attorneys' fees, judgments, fines, penalties,
ERISA excise taxes and amounts paid in settlement) actually and reasonably
incurred by the Executive in connection with an action, suit or proceeding.

Assignability; Binding Nature.

This Agreement shall inure to the benefit of MFA and the Executive and their
respective successors, heirs (in the case of the Executive) and assigns. No
rights or obligations of MFA under this Agreement may be assigned or transferred
by MFA except that any such rights or obligations may be assigned or transferred
pursuant to a merger or consolidation in which MFA is not the continuing entity,
or the sale or liquidation of all or substantially all of the assets of MFA,
provided that the assignee or transferee is the successor to all or
substantially all of the assets of MFA and such assignee or transferee assumes
the liabilities, obligations and duties of MFA, as contained in this Agreement,
either contractually or as a matter of law. This Agreement shall not be
assignable by the Executive.

Representation.

MFA represents and warrants that it is fully authorized and empowered to enter
into this Agreement and that its entering into this Agreement and the
performance of its obligations under this Agreement will not violate any
agreement between MFA and any other person, firm or organization or any law or
governmental regulation.

Entire Agreement.

This Agreement contains the entire agreement between MFA and the Executive
concerning the subject matter hereof
<PAGE>

and supersedes all prior agreements, understandings, discussions, negotiations
and undertakings, whether written or oral, between them with respect thereto.

Amendment or Waiver.

This Agreement cannot be changed, modified or amended without the consent in
writing of both the Executive and MFA. No waiver by either MFA or the Executive
at any time of any breach by the other party of any condition or provision of
this Agreement shall be deemed a waiver of a similar or dissimilar condition or
provision at the same or at any prior or subsequent time. Any waiver must be in
writing and signed by the Executive or an authorized officer of MFA, as the case
may be.

Severability.

In the event that any provision or portion of this Agreement shall be determined
to be invalid or unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

Reasonableness.

To the extent that any provision or portion of this Agreement is determined to
be unenforceable by a court of law or equity, that provision or portion of this
Agreement shall nevertheless be enforceable to the extent that such court
determines is reasonable.

Survivorship.

The respective rights and obligations of the parties hereunder shall survive any
termination of this Agreement to the extent necessary to the intended
preservation of such rights and obligations.

Governing Law.

This Agreement and all rights thereunder, and any controversies or disputes
arising with respect thereto, shall be governed by and construed and interpreted
in accordance with the laws of the State of New York, applicable to agreements
made and to be performed entirely within such State, without regard to conflict
of laws provisions thereof that would apply the law of any other jurisdiction.

Notices.

Any notice given to either party shall be in writing and shall be deemed to have
been given when delivered personally or sent by certified or registered mail,
postage prepaid, return receipt requested, duly addressed to the party
concerned, if to MFA, at its principal office, and if to the Executive, at the
address of the Executive shown on MFA's records or at such other address as such
party may give notice of.

Headings.

The headings of the paragraphs contained in this Agreement are for convenience
only and shall not be deemed to control or affect the meaning or construction of
any provision of this Agreement.

Counterparts.

This Agreement may be executed in two or more counterparts.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first written above.

                                        MFA Mortgage Investments, Inc.

                                        By: /s/ Stewart Zimmerman
                                            ---------------------
                                                   Stewart Zimmerman
                                            Title: Chief Executive Officer
                                                   and President

                                            /s/ Teresa D. Covello
                                            ---------------------
                                                Teresa D. CovelloExhibit 10.1 Douglas K. Beplate - Original Technology Agreement 2/9/96

     AGREEMENT

     This Agreement made and entered into this 9th day of February 1996, by and
between

     Douglas Beplate, of 245 North Lion's Head Dr., Washington, Utah, USA, 84780
("Beplate")

     and

     Emergency Filtration Products, Inc. a Nevada Corporation, ("the
Corporation") with registered offices at 310 E. Minor Street, Winnemucca Nevada,
89445, by its president, Bruce E. Batchelor

     Witnesses that:

     Whereas:

     1. Beplate is the sole and exclusive owner of a certain invention called an
emergency cardio-pulmonary resuscitation ("CPR") assistance device, ("the
Invention"), which invention has been protected in its essential operation by
Beplate lodging an application for a United States patent ("the Patent Rights")
on a critical component, being a certain configuration of valving called a
rotary isolation valve;

     2. And whereas Beplate maintains, in addition to the patent application,
certain industrial knowledge and contacts useful for, or essential for, the
physical production of the invention, and the commercial exploitation thereof as
a product ("the product")

     3. And whereas the Corporation wishes to acquire title to the patent
application and to all rights pertaining thereto ("the Rights"), including the
right to manufacture, sell, and improve the device, and to license the said
Rights; copyright to all materials created by Beplate, and all other rights of
any description relative to this product and in the control of Beplate;

     4. And whereas Beplate is desirous of conveying all Rights to the invention
and to its commercial exploitation to the Corporation

     5. And whereas the Corporation wishes to compensate Beplate for conveying
said Rights to the Corporation;

     6. And whereas Beplate and certain other parties advanced funds to another
business generally in the same line of business but not with the similar
configuration of valving between September of 1993 and October of 1995, and
which prior business ("the prior business") is defunct, or said to be so by its
officers and directors;

     7. And whereas Beplate and Emergency Filtration Products, Inc. have
volunteered, without compulsion and without demands having been made upon them,
to make whole certain shareholders in the said prior business through a separate
agreement ("the indemnity agreement"), as a condition of removing any impediment
or perceived impediment to Beplate remaining in this same line of business and
making the conveyance to the Corporation with which this Agreement is concerned;

     8. And whereas Emergency Filtration Products, Inc. is required as a term of
this agreement to indemnify Beplate for financial losses derived from the prior
business;

     NOW THEREFORE, in consideration of the mutual warranties, disclosures,
covenants and agreements herein contained, the parties agree as follows:

     1. Warranty of Title: Beplate warrants that he is the sole and rightful
owner of all right, title, and interest in, and to, the Invention, and in and to
the Patent Rights to the said Invention, and that there are no other valid

<PAGE>

outstanding licenses, agreements, or encumbrances of any description that are in
any way inconsistent with the conveyance of the totality of all Rights to the
Invention to the Corporation;

     2. Material Disclosure: Beplate discloses that in January of 1995 a
different configuration of a device intended for the same purpose and market was
licensed to another corporation, and Beplate further discloses that he has been
informed by counsel, and by more than one of them, that the said corporation and
its officers and directors are entirely in default of the provisions of that
license agreement, and that any conveyance of rights under that agreement is
therefore void, and that Beplate may maintain causes of action as against the
said corporation, and against its officers and directors;

     3. And Beplate further discloses and maintains that the design of the valve
in the current patent application differs in material and profound respect from
that in the patent application of December of 1994, and that he has entirely
abandoned the configuration in the prior application;

     4. Additional Comfort: In addition to any disclosure offered herein as to
prior different manifestations of product, Beplate offers the further comfort
that he has caused an agreement to be drafted and executed, the intent of which
is to save harmless Beplate, the Corporation, and the officers and directors of
the Corporation in respect of certain individuals formerly engaged as lenders or
as shareholders in the prior business, with the effect that the Corporation may
engage in this conveyance with as little impediment, or the perception of
impediment, as Beplate or any other person is reasonably able to secure, and it
is herewith recorded that for its own security and comfort, the Corporation has
been made a party to the said agreement with the prior shareholders.

     5. And the Corporation further attests, that it has been informed that the
dollar value of voluntary payment made to each and every person under the terms
of the agreement with the shareholders and lenders of the former business has
been made without audit, and represents the actual prior dollar outlay of any
party receiving funds, with no premium, interest, or penalty, which figures the
Corporation accepts for itself without audit or further review.

     6. Grant of Rights Beplate hereby grants to the Corporation:
     a. All right and title to the Invention, and to the present and future
Patent Rights to the Invention.
     b. All rights to derivative or successive inventions, or adaptations to the
current version of the invention, arising or continuing from the concept or the
claims made in the patent application for the valving device and the associated
attachments, whether or not said claims may be sustained by examination in the
patent office of the United States, or in other jurisdictions;
     c. All rights to the commercial exploitation of the Invention, including
exploitation by way of manufacturing, sales of units of the device, licensing,
or otherwise;
     d. All other rights in any way connected with the device and arising from
the work or thinking of Beplate, including but not necessarily limited to
copyrights of printed material and design concepts; trademarks; (whether applied
for or not); drawings; work in progress; literature; sales contacts;
manufacturing contacts, and other material of a generally similar nature.

     7. Consideration In consideration for the grant of the Rights to the
Corporation, the Corporation shall compensate Beplate or other parties
designated by him as follows, and shall maintain the further rights herein
enumerated:
     a. It is herewith agreed that the corporation may pay any designated
recipient of any sum under the said indemnity agreement with shares of the
common or preferred stock of the corporation, or as the case may be, the common
or preferred stock of any corporation acquiring Emergency Filtration Products,
Inc., or being acquired by the latter, but with the proviso that no person
receiving payment in stock under this program shall receive a worse rate of
conversion than any other person converting stock with the Corporation in
connection with any other conversion program, promissory note, or agreement;
     b. The Corporation shall remit to parties other than Beplate named in the
payment schedule of the said agreement with former shareholders, or to the
attorney or other representative named by the receiving party pursuant to the
provisions of the said agreement, the sums scheduled for each party on that
agreement, but in any event the sums so remitted for parties other than Beplate
shall not exceed the aggregate of $119,500.00.

<PAGE>

     c. The Corporation shall remit to Beplate or to his designated attorney in
trust the sum of $117,000.00 in satisfaction of the terms of the indemnification
agreement.
     d. By payment to Beplate of a royalty of 5% (five percent) calculated on
the cash received by the Corporation and/or any licensee on sales of the entire
CPR device or any components thereof, and payable quarterly, 30 days in arrears
of the end of each three months of the year.
     i. In connection with sales of the device or components thereof under
license, it is understood that the obligation of the Corporation to ensure
payment of the royalty shall flow through to the licensee, but the Corporation
shall be liable only for its own best efforts in the enforcement of payment of
said royalties, and not for the cash value thereof, and the parties hereto agree
that the recourse against non-payment of royalties by licensees shall be
immediate termination of the licensee, and action for recovery and/or
retraction.
     e. By compensating Beplate for consulting services to the Corporation at a
rate of commensurate with those paid to senior consultants in the medical
products line of business, for which services he shall invoice the Corporation
monthly.
     f. By awarding Beplate 19.00% of the issued common shares of the
Corporation, calculated as of the date of the execution to this agreement.

     8. Non-Acceptance of Patent Application

     a. The parties hereto acknowledge that the Rights granted in this Agreement
represent an intellectual property undergoing application for patent, and not
pertaining to any patent having been granted.
     b. The parties shall jointly perform every act necessary to ensure
acceptance and passage of the patent application, failing which acceptance it
shall be the obligation of the Corporation to pay Beplate only the royalty and
common stock components of the consideration, and to employ him as a consultant
as needed, with the following provisions:
     i. The phrase "rejection of the patent application" as used herein shall be
deemed not to include abandonment of the application by the company without
conclusive determination by the United States Patent Office that there are no
allowable claims whatsoever in the said patent application, and rejection shall
be deemed not to have occurred unless that Corporation has pursued every
reasonable effort to ensure acceptance of one or more of the claims in the
patent application, and all avenues of submission and re-submission;
     ii. And furthermore, rejection of the patent application shall not be
deemed to have occurred if, at the option of the coronation, the patent
application be from time to time renewed or re-submitted, with the effect of
being barred from progress toward a final determination;
     iii. In the event of the rejection of the patent application as defined
herein, and in the event that the Corporation is nevertheless able to sell a
product or products based on the ideas of Beplate, but without the benefit of
patent protection, any funds paid to Beplate in satisfaction of the obligation
to make a voluntary refund of investment or the shareholders of the prior
business shall be presumed to have been paid over as royalty. Such funds shall
also be assumed to have been paid in advance to the extent that actual royalties
payable may not by the time of the rejection of the patent, equal any sum paid
by the Corporation in satisfaction of the agreement with the former
shareholders.
     c. In the event that no CPR emergency assistance product is saleable by the
Corporation, no further funds or royalties shall be payable to Beplate, but
Beplate shall in no even be obligated to repay any funds paid or advanced to him
or to the former shareholders of the prior Corporation, and the Corporation
shall deem that any funds so advanced were paid after the performance of its own
diligence and in an effort to avail itself of a commercial opportunity.

9. Exclusivity of Services    As a term of the sums and other consideration
paid to Beplate through this Agreement, Beplate agrees to provide the
Corporation freely with sufficient time, consultation, and information on the
Rights, on the current patent application, the re-submission or continuation of
any patent application or actual patent, and on the development of the product,
for the Corporation to benefit from the development and enhancement of the
Rights. Beplate agrees not to supply any other party with any information on the
Rights, for the duration of the term of the Patent Rights, except in the normal
course of acting on the business for the Corporation, and according to the
Corporation's policies on disclosure.

<PAGE>

10. Conveyance  On the date of the execution of this Agreement, Beplate
shall supply to the Corporation all papers, records, and information of any
description materially relative to the Rights and to the commercial production,
development, and future enhancement of the Rights. At the request of the
Corporation, Beplate shall register an assignment of the patent application to
the Corporation.

11. Infringement    Should any party infringe the Patent Rights, the
Corporation shall be obligated to pursue legal action for damages or to apply
injunctively for cessation of the infringement. The costs of such action shall
be borne by the Corporation, and all proceeds from such action shall accrue to
it. If the Corporation, in the best judgment of the Board of Directors, does not
act against the alleged infringement, Beplate shall be empowered to bring action
in his own right, and at his own expense, and the proceeds of any such action
shall be his own property.

12. Sub-Licenses and Assignments    The Corporation shall have the right under
this agreement to license the Rights; to appoint distributors; to appoint
foreign licensees or sub-licensees; and to deal in every manner commensurate
with normal trade practices with the Rights. The Corporations shall have the
right to assign, partially or entirely, the Rights granted under this Agreement,
provided that the compensation payable to Beplate under the proposed arrangement
is not demonstrably less than under the prior arrangement.

13. Warranty as to Product Efficacy and Liability   Beplate warrants that any
device incorporating the valve under patent application is suitable only for the
limited purposes claimed in the version of the patent application current as of
the date of the execution of this Agreement. The parties hereto agree that any
claims in addition to this limited warranty shall be those of the Corporation,
not Beplate, and the Corporation agrees to hold Beplate harmless from all
claims, actions, costs, whether actual or threatened, which are related to
claims for product efficacy or design, whether through negligence in the design
or otherwise, or through use or wrong use, whenever and howsoever such claims
may arise.

14. Patent Maintenance and Application Fees   The Corporation shall pay all
fees for completion of the patent application and for the maintenance of the
patent, including any account for services which may be presented for services
rendered before the date of this Agreement.

15. Successors This Agreement is binding on the successor, heirs, and
assigns of the parties.

16. Jurisdiction The jurisdiction of this agreement shall be the State of
Nevada.

17. Severability The sections and sub-sections of this agreement are
severable, and the vitiation of any of them shall not render void the whole of
the agreement, or any other provision herein.

18. Fax Versions, Counterpart and Clean Copy This agreement and the
execution hereof shall be valid if executed in counterpart, and if evidence of
the execution be transmitted from one party to another by fax. The Corporation
thereafter shall maintain the option of requiring and creating a clean copy.

To which the parties have set their signatures this 29th day of February
1996.

\S\ Douglas Beplate
Douglas Beplate

\S\ Bruce E. Batchelor
Bruce E. Batchelor, President
Emergency Filtration Products, Inc.

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